COPT Defense Properties Common Shares of Beneficial Interest (CDP)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach CDP as a REIT, where GAAP earnings are distorted by depreciation, so the missing piece is FFO/AFFO; neither is in this data set. The business itself is understandable: it owns defense/IT properties near key U.S. Government installations, with tenants that are the government and defense contractors. That can create sticky, mission-critical demand. Still, the filed numbers are not a smooth growth story: in FY2023 revenue was $60.2M and net income was -$74.3M, while in FY2024 revenue was $75.5M and net income $143.9M, and in FY2025 revenue was $42.1M with net income $159.5M. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $6.8M, net income $48.6M, and diluted EPS $0.40. Profit recovered, but the revenue trend is erratic. At the 2026-10-13 close of $33.55, FairStock shows a 3.72% dividend yield, 8.9% FCF yield, P/B 2.48, P/E 23.30, D/E 1.64, ROCE 3.43%, and Altman Z-score 0.51. The low beta and dividend help, but leverage and weak asset returns are real concerns. The Lynch category is TURNAROUND, not a durable compounder, and Piotroski is only 5/9. Without FFO/AFFO, I cannot properly judge REIT valuation; on price-to-book and earnings, the shares look fair at best. I’d want evidence that revenue and returns on capital improve before calling this a bargain.

In plain English: COPT Defense Properties owns and operates office and technology properties tied to U.S. defense installations, leased mostly to the government and defense contractors. The business has returned to profit after a loss, and its dividend and cash generation look supportive, but it carries a lot of debt and is not clearly cheap based on its accounting value. Overall, it looks like a steady but not low-risk property company whose shares appear around fair value from the numbers shown.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer