NYSE$CDP

COPT Defense Properties · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong results driven by the Defense/IT investment strategy.

COPT reported strong second quarter results, with FFO per share exceeding the midpoint of guidance. The company increased its full-year FFO per share guidance and same-property cash NOI guidance, driven by elevated tenant demand and solid execution.

  • EPS was $0.27, and FFO per share as adjusted for comparability was $0.60, exceeding the high end of guidance.
  • The midpoint of 2023 FFO per share guidance was increased by $0.02 to $2.40.
  • Core portfolio was 93.6% occupied and 95.0% leased.
  • Same-property cash NOI increased 5.8%, leading to an increased full-year guidance.

Headline financials

Total Revenue

$169M

Previous: $186M-8.9%
EPS (adj)

$0.60

Previous: $0.59+1.7%
Same Property Cash NOI Growth

5.8%

No prior period
Total Portfolio Leased

95.0%

No prior period
Adjusted EBITDA Fixed Charge Coverage Ratio

4.9

No prior period
Net Debt to In-Place Adjusted EBITDA Ratio

6.3

Previous: 6.4-1.6%
Capital Expenditures

-$153M

Previous: -$164M+6.7%
Free Cash Flow

-$122M

Previous: -$131M+6.9%
Net Income

$31.6M

Previous: $33.6M-5.8%
Operating Income

$121M

Previous: $101M+19.6%
Gross Profit

$169M

Previous: $144M+17.1%
Cash & Equivalents

$14.3M

Previous: $20.7M-31.2%
Total Assets

$4.25B

Previous: $4.19B+1.5%
Stock-Based Comp

$2.21M

Previous: $2.19M+1.1%

Revenue & EPS history

COPT · Revenue · Quarterly

$169M

Q2 2023-8.9%vs Q2 2022
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

Management is updating its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability, from the prior range of $1.46-$1.52, and $2.35-$2.41, respectively, to new ranges of $1.49-$1.53, and $2.38-$2.42, respectively. Management is establishing third quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.26-$0.28 and $0.59-$0.61, respectively.

Tailwinds

  • Increased Midpoint of 2023 FFO per Share Guidance by 2-cents to $2.40
  • Core Portfolio 93.6% Occupied and 95.0% Leased
  • Same-Property Cash NOI Increased 5.8% in 2Q23 and 7.0% Year-to-Date
  • Raising Same-Property Cash NOI Guidance for the Year by 100 Basis Points, to 4.5%-5.5%
  • 1.5 million SF of Active Developments are 92% Leased

Headwinds

  • No negative aspects were explicitly mentioned in the provided summary or forward-looking statements.
  • No negative aspects were explicitly mentioned in the provided summary or forward-looking statements.
  • No negative aspects were explicitly mentioned in the provided summary or forward-looking statements.
  • No negative aspects were explicitly mentioned in the provided summary or forward-looking statements.
  • No negative aspects were explicitly mentioned in the provided summary or forward-looking statements.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.1%

Avg return

30 days after

61%

42 / 69 earnings

Positive

+6.2%

Q2 2019

Best reaction

-6.4%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.7%-4.1%+0.5%
Q4 2025+1.4%+1.2%+0.2%
Q3 2025+3.8%+5.4%+12.5%
Q2 2025+0.3%+1.0%+10.3%
Q1 2025-4.2%-0.5%+3.0%
Q4 2024-0.8%-5.5%-8.7%
Q3 2024+0.7%-1.1%+1.7%
Q2 2024+2.9%+2.2%+4.3%
Q1 2024+3.0%+4.4%+4.8%
Q4 2023+4.3%+4.4%+8.0%
Q3 2023+0.2%-0.5%+5.9%
Q2 2023-0.8%-1.5%-4.2%
Q1 2023+4.8%+5.9%+2.1%
Q4 2022-1.4%-0.6%-9.9%
Q3 2022+3.1%+4.4%+8.2%
Q2 2022+4.3%+1.0%-2.4%
Q1 2022-2.1%-1.8%+0.5%
Q4 2021+0.4%+0.5%+11.8%
Q3 2021-0.4%-0.2%-4.4%
Q2 2021-0.2%-3.4%-3.4%
Q1 2021-0.3%+1.5%-1.9%
Q4 2020+0.9%+1.2%-2.0%
Q3 2020+2.3%+6.0%+24.2%
Q2 2020-0.6%+2.0%-6.0%
Q1 2020-6.4%-7.0%-6.6%
Q4 2019-2.9%-2.4%-7.7%
Q3 2019-2.5%-0.5%-1.9%
Q2 2019+6.2%+3.2%+5.4%
Q1 2019+0.9%+1.7%-0.2%
Q4 2018+1.8%+2.7%+4.4%
Q3 2018-6.3%-8.7%-14.1%
Q2 2018+2.4%+1.9%+4.1%
Q1 2018+2.4%+2.7%+3.1%
Q4 2017+1.3%-2.0%+1.2%
Q3 2017+3.2%+2.5%+0.3%
Q2 2017-1.0%-2.8%-3.0%
Q1 2017+0.4%+1.1%-0.1%
Q4 2016+3.0%+2.9%+2.4%
Q3 2016-3.2%-4.3%+6.5%
Q2 2016+1.2%-0.4%-4.1%
Q1 2016+0.0%
Q4 2015+3.1%
Q3 2015-3.1%
Q2 2015-3.5%
Q1 2015-4.6%
Q4 2014+0.8%
Q3 2014+2.0%
Q2 2014-0.8%
Q1 2014+0.1%
Q4 2013+3.6%
Q3 2013+3.4%
Q2 2013-4.6%
Q1 2013-0.3%
Q4 2012+0.4%
Q3 2012-3.0%
Q2 2012+0.4%
Q1 2012+0.5%
Q4 2008+0.3%
Q4 2011+0.3%
Q3 2011-5.2%
Q2 2011-1.2%
Q1 2010-1.4%
Q1 2011+1.5%
Q4 2010+0.5%
Q3 2010+1.0%
Q4 2009+1.0%
Q3 2009+1.0%
Q2 2009+3.5%
Q2 2010+3.5%

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