COPT Defense Properties (NYSE: CDP) (“COPT Defense” or “the Company”) recently acquired a 365-acre parcel near Des Moines, Iowa, for $32 million to support its growing data center shell program. The site, zoned for data center use, can accommodate approximately 3.3 million square feet of development, backed by an estimated 1 gigawatt of power capacity.
In addition, the Company purchased an 80,000-square-foot building at 3900 Rogers Road in San Antonio, Texas, for $17 million. The vacant building will be fully leased to the U.S. Government, with occupancy expected to begin in Q2 2025. This Class A office building, constructed in 2005, is located five miles from the Company’s fully occupied 1-million-square-foot campus in San Antonio.
Stephen E. Budorick, COPT Defense’s President & CEO, commented, “Our Iowa land acquisition enables us to expand our successful data center shell program in Des Moines, the nation’s 5th largest hyperscale market. The area’s attractive land values, power availability, renewable energy access, fiber connectivity, and supportive tax incentives are ideal for long-term growth. This phased project will enhance FFO, AFFO, and NAV per share, self-funded on a leverage-neutral basis.”
He added, “Our Rogers Road building acquisition strengthens our relationship with the U.S. Government, adding scale near our San Antonio campus and supporting our reputation as a trusted partner for mission-critical federal and defense tenants.”
About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of June 30, 2024, the Company’s Defense/IT Portfolio of 193 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.0 million square feet and was 96.7% leased.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.
The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
