Q2 2024 COPT Defense Properties Earnings Call Transcript
Key Points
- FFO per share as adjusted for comparability was $0.64, exceeding the midpoint of guidance by $0.01.
- Same property cash NOI increased 10.9% year over year in the total portfolio and 11.2% in the Defense/IT Portfolio.
- Completed 985,000 square feet of total leasing with an 86% retention rate.
- Increased the midpoint of 2024 FFO per share guidance by $0.02 to $2.56, implying nearly 6% year-over-year growth.
- Strong balance sheet with no significant debt maturities until March 2026 and over 85% capacity on the $600 million line of credit available.
- Challenges in the capital market environment affecting the proper valuation for asset sales.
- High construction costs remain a challenge despite the rate of increase abating.
- Limited power availability in Northern Virginia affecting the expansion of the data center program.
- Potential significant vacancy challenges in downtown Baltimore due to T. Rowe Price's move.
- Occupancy growth may be limited as the portfolio is already approaching mid-90% range, making further incremental progress difficult.
Welcome to the COPT Defense Properties second quarter 2024 results conference call. As a reminder, today's call is being recorded.
At this time, I would turn the call over to Venkat Kommineni, COPT Defense's Vice President of Investor Relations. Mr. Kommineni, please go ahead.
Thank you, Lachi. Good afternoon and welcome the COPT Defense's conference call to discuss second quarter results. With me today are Steve Budorick, President and CEO; and Anthony Mifsud, Executive Vice President and CFO.
Reconciliations of GAAP and non-GAAP financial measures that management discusses are available at our website in the results press release and presentation and in our supplemental information package.
As a reminder, forward-looking statements made during today's call are subject to risks and uncertainties which are discussed in our SEC filings. Actual events and results can differ materially from these forward-looking statements, and the company does not
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