Q4 2024 COPT Defense Properties Earnings Call Transcript
Key Points
- COPT Defense Properties (CDP) achieved a record tenant retention rate of 86% in 2024, the highest in over 20 years.
- The company reported a 9.1% increase in same-property cash NOI, marking the highest growth ever recorded.
- CDP executed 0.5 million square feet of vacancy leasing, representing 45% of the space vacant at the beginning of the year.
- The company committed $212 million to new investments, including its first building acquisitions since 2015.
- CDP's FFO per share as adjusted for comparability was $2.56, exceeding the midpoint of initial guidance by $0.06.
- Occupancy levels slightly decreased by 60 basis points year over year due to strategic accumulation of inventory.
- The company anticipates a $0.015 increase in financing costs in 2025.
- There is potential uncertainty regarding defense budget appropriations due to political dynamics in Congress.
- Some nonrenewals and contractions are expected to impact occupancy in the first quarter of 2025.
- The company faces challenges in the investment sales market due to high interest rates and distressed asset conditions.
Welcome to the COPT Defense Properties fourth-quarter and full-year 2024 results conference call. As a reminder, today's call is being recorded.
At this time, I will turn the call over to Venkat Kommineni, COPT Defense's Vice President of Investor Relations. Mr. Kommineni, please go ahead.
Thank you, Dan. (technical difficulty) fourth-quarter and full-year results. With me today are Steve Budorick, President and CEO; Brett Snider, Executive Vice President and COO; and [Anthony Mifsud], Executive Vice President and CFO. (technical difficulty) are available on our website, and the results, press release, presentation and our supplemental information package.
As a reminder, forward-looking statements made during this call are subject to risks and uncertainties, which are (technical difficulty) Actual events and results can differ materially from these forward-looking statements, and the company does not take the duty to update them. Steve?
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