| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 29 | 24.6x | 17.8x | Bottom tier | |
Growth | 22 | 4.5% | 7.1% | Bottom tier | |
Quality | 44 | 5.9% | 4.5% | Around median | |
Safety | 37 | 6.0x | 2.6x | Bottom tier | |
Capital Return | 42 | 3.53% | 2.12% | Around median | |
Momentum | 86 | 28.6% | 2.9% | Top tier | |
Sentiment | 64 | 3 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
COPT Defense Properties is a real estate company focused on owning, developing, and leasing facilities that serve the U.S. government and defense contractors, particularly activities related to intelligence, cybersecurity, missile defense, and military space. Its income is generated primarily from rents, supported by property development and development fees, while tenant retention rising to 84% in the first half of fiscal year 2026 and its ability to fund growth from free cash flow provide it with a model that is less dependent on new equity issuances. At the end of quarter 2 of fiscal year 2026, the total portfolio was 95.6% leased and 94.1% occupied, compared with 96.4% and 95.1%, respectively, for the Defense IT portfolio.
In quarter 2 of fiscal year 2026, the company reported revenue of $197.4 million, net income of $48.6 million, and GAAP earnings per share of $0.40, compared with revenue of $200.6 million, net income of $39.5 million, and earnings per share of $0.34 in quarter 1 of fiscal year 2026. Funds from operations per share were $0.71, up 4.4% year over year and $0.02 above the midpoint of guidance, while cash net operating income from comparable properties grew 7.4% year over year. The provided EDGAR data do not include a gross profit figure, so the profitability assessment focuses on net income, funds from operations, and cash net operating income.
Revenue for the twelve months ended during fiscal year 2026 was approximately $1.3 billion, while the provided data show two net income readings of $171.8 million and $163.4 million and earnings per share of approximately $1.43 to $1.50. Redstone Gateway is the most prominent expansion platform; its operating portfolio totals 2.4 million square feet and is 99.6% leased, and management expects its twenty-four operating buildings to reach full leased occupancy after signing the remaining 10 thousand square feet. The active development portfolio also reached approximately 900 thousand square feet, 73% pre-leased, and is associated with capital commitments of approximately $450 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $40 and a target range of $38 to $42; the average is slightly above the upper end of the 52-week range of $38.90, while the highest target exceeds that upper end by approximately 8%. No price-to-earnings ratio is available in the provided data, so the valuation assessment rests on the company's ability to achieve fiscal year 2026 funds from operations guidance of $2.78 per share and convert the Redstone Gateway development pipeline into leases, weighed against slowing comparable-property growth, higher financing costs, and dilution from exchangeable notes.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The most prominent driver is demand for real estate associated with defense, intelligence, cybersecurity, space, and missile defense missions. In quarter 2 of fiscal year 2026, funds from operations per share grew 4.4% year over year to $0.71, and comparable-property cash net operating income increased 7.4%. The higher-probability development opportunity pipeline also totaled approximately 1.2 million square feet on July 28, 2026, with 83% of it in Huntsville and approximately half of that portion related to Golden Dome.
The operating portfolio at Redstone Gateway totaled approximately 2.4 million square feet and was 99.6% leased in quarter 2 of fiscal year 2026. The company intends to begin two additional buildings totaling 240 thousand square feet with a committed cost of $91 million, with one scheduled for delivery around October 2027 and the other in early 2028. Following the active and planned projects, management expects the park to exceed three million square feet, driven by 415 thousand square feet of demand from contractors supporting Golden Dome and missile defense missions.
On July 28, 2026, management raised the midpoint of funds from operations per share guidance to $2.78, representing growth of 2.2% from fiscal year 2025. It also raised the midpoint of comparable-property cash net operating income growth guidance to 4% and the expected cash rent change upon renewal to 3%. The vacant leasing target increased to 475 thousand square feet, while the committed capital target for new investments increased to $335 million.
Management said on the July 28, 2026 call that it does not intend to fund developments by issuing new shares and that it prefers to use free cash flow. It estimates that it can fund the equity component of approximately $300 million of investment annually while maintaining leverage. However, fiscal year 2026 guidance includes $0.04 per share of dilution from exchangeable notes, in addition to $0.08 of additional net interest expense resulting from note refinancing.
Management expects comparable-property cash net operating income growth to slow in the second half of fiscal year 2026 because of known relocations and contractions and the nonrecurrence of tax refunds realized in fiscal year 2025. The two new Redstone Gateway projects, totaling 240 thousand square feet, were also not pre-leased on July 28, 2026. In the Iowa data center sector, management expected no leases for 12 to 24 months because of the difficulty of securing power.
The total portfolio was 95.6% leased and 94.1% occupied at the end of quarter 2 of fiscal year 2026, while the Defense IT portfolio was 96.4% leased and 95.1% occupied. Average tenant retention reached 84% in the first half of fiscal year 2026, compared with an average of 79% during the decade preceding the call. The company also renewed five million square feet of large leases at a 98% retention rate during the preceding four years and expects retention of 80% to 85% for the full fiscal year 2026.
