NYSE$CDP

COPT Defense Properties · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong third-quarter results, raised midpoint of full-year guidance, and demonstrated solid leasing activity.

COPT reported a strong third quarter, driven by demand for its Defense/IT Locations. The company raised its full-year guidance for FFO per share, as adjusted for comparability, to $2.27, representing 7.1% growth over 2020.

  • Diluted EPS was $0.24 for the quarter, and FFO per share, as adjusted for comparability, was $0.57, exceeding the high end of guidance by 1 cent.
  • Same-property cash NOI increased by 4.8% in the quarter, leading to an increased midpoint of same-property cash NOI guidance for the year.
  • The core portfolio was 93.5% occupied and 94.8% leased.
  • Active developments totaling 1.8 million square feet are 94% leased.

Headline financials

Total Revenue

$175M

Previous: $155M+12.8%
EPS (adj)

$0.57

Previous: $0.54+5.6%
Same Property Cash NOI Growth

4.8%

No prior period
Total Portfolio Occupied

93.5%

Previous: 94.0%-0.5%
Total Portfolio Leased

94.8%

Previous: 94.6%+0.2%
Capital Expenditures

-$196M

Previous: -$309M+36.7%
Free Cash Flow

-$169M

Previous: -$341M+50.5%
Net Income

$27.1M

Previous: -$31.8M+185.1%
Operating Income

$102M

Previous: $58.9M+72.6%
Gross Profit

$148M

Previous: $103M+43.0%
Cash & Equivalents

$14.6M

Previous: $11.5M+27.2%
Total Assets

$4.15B

Previous: $4.12B+0.8%
Stock-Based Comp

$2.05M

Previous: $1.73M+18.6%

Revenue & EPS history

COPT · Revenue · Quarterly

$175M

Q3 2021+12.8%vs Q3 2020
Beat estimate in 4 of 5 quarters(80%)
ActualEstimate

Forward guidance

Management is increasing its full-year guidance for EPS and FFOPS, per Nareit and as adjusted for comparability.

Tailwinds

  • Full-year EPS guidance increased to a range of $0.76-$0.78.
  • Full-year FFOPS, per Nareit, guidance increased to a range of $1.74-$1.76.
  • Full-year FFOPS, as adjusted for comparability, guidance increased to a range of $2.26-$2.28.
  • Strong leasing activity with 1.0 million square feet leased in the quarter.
  • Development pipeline consists of 13 properties totaling 1.8 million square feet that are 94% leased.

Headwinds

  • Lowering prior guidance ranges for EPS and FFOPS (per Nareit and as adjusted for comparability) for the fourth quarter from $0.21-$0.23 and $0.56-$0.58, respectively, to $0.20-$0.22 and $0.55-$0.57, respectively, to account for the expected timing of repair and maintenance projects.
  • Cash rents on renewed space decreased 0.6% for the quarter.
  • Cash rents on renewed space decreased 0.3% for the nine months ended September 30, 2021.
  • Lease terms averaged 3.1 years on renewing leases.
  • The company expects customers to continue making long-term commitments to our Defense/IT Locations.

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 Q3 2021

Historical avgQ3 2021

+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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