[角色] 你是一名拥有10年投资银行从业经验的资深研究分析师，专门负责上市公司、行业研究。你擅长解读公司财报、行业动态、宏观市场，发现潜在的投资机会和风险。 [任务] 你需要仔细研读一份上市公司或者行业研究的电话会议记录，请阅读全文，一步一步思考，总结全文列出关键要点，不要错过任何信息，包括： * 纪要涉及的行业或者公司 * 纪要提到的核心观点和论据 * 其他重要但是可能被忽略的内容 如果没有相关内容，请跳过这一部分，进行其他的部分。 总结时要全面、详细、尽可能覆盖全部的内容、不遗漏重点,并根据上述方面对内容进行分组。 要引用原文数字数据和百分比变化,注意单位换算(billion=十亿,million=百万,thousand=千)。 [注意事项] 1) 使用中文,不要出现句号 2) 采用markdown格式 3) 不使用第一人称,以"公司"、"行业"代替 4) 只输出关于公司和行业的内容 5) 在每一个关键点后用[序号]形式引用原文档id 6) 一个[序号]只应该包含一个数字，不能包含多个，如果多个就用[序号][序号]分开写，不要写成 [序号-序号] 7) 每个关键要点后边的 [序号] 不要超过 3 个 Content: --------- <doc id='1'>COPT Defense Properties (NYSE:CDP) 2025 Conference September 11, 2025 11:05 AM ET Speaker0 Started. Thank you all for joining us for the final roundtable of the Bank of America's 2025 Global Real Estate Conference. I'm Yana Gallen, and I cover the office REITs at B of A. We're very pleased to have with us COPT Defense Properties CEO and President, Steve Budorick, here today. Steve will introduce his team and provide some opening remarks, and then we'll open it up for questions.</doc> <doc id='2'>Speaker2 Let's wake you. With me is our Chief Operating Officer, Britt Snider, and our Chief Financial Officer, Anthony Mifsud, and we're pleased to be here. Thank you. COPT Defense Properties is a specialized REIT, deeply concentrated in mission-critical assets that support the national defense activity of the U.S. government. The vast majority of our 204 properties are located adjacent to, or sometimes occupied by, priority defense missions, generally involving knowledge-based defense activities. Missions that we support include intelligence, surveillance, reconnaissance, cybersecurity and network activity, naval, sea, and air technology development, missile attack and defense systems, drone aviation technology development, cloud computing, and others. Our property locations are not typical for an office company because they are proximate to important U.S. defense installations in Virginia, Maryland, Washington, D.C., Alabama, and Texas. Our properties are unique in that they are approved for top-secret mission work.</doc> <doc id='3'>80% of our defense portfolio contains high-security operations, and that 80% includes eight U.S. government- secured campuses representing over 4 million square feet that are built to anti-terrorism, force protection, and SCIF standards. SCIF is an acronym for Sensitive Compartmented Information Facility. We have another 1 million square feet of U.S. government leases that are SCIF and access-controlled outside campuses. We have over 6 million square feet of defense contractor leases that contain SCIF in them, and we have 15 cloud computing campuses representing over 6 million square feet that's fenced in and has limited access. An additional nuance of our business is our defense tenants have to work from their office, and they did so throughout the pandemic environment because if they take their work home, it's espionage and they go to jail. It's a big differentiator.</doc> <doc id='4'>Today, over 90% of our annualized rental revenue is derived from our defense IT properties. Our pre-lease developments that are available in our supplement will increase that figure in coming years. Our defense IT segment was 96.8% leased at quarter-end, well above our peer average. The U.S. government is our largest tenant by revenue. We have over 100 separate leases in 70 different properties. That totals 5.6 million square feet and produces 36% of our annualized rental revenue. Defense contractor tenants lease 15 million square feet from us. This includes 3 million square feet of cyber defense contractor tenants, and defense contractors contribute 51% of our annualized rental revenue. 15 of our 20 top tenants are defense tenants. Our non-defense locations provide just 10% of annualized rental revenue, and they consist of five properties, three in downtown Baltimore on the waterfront, one in downtown D.C., and one in Tyson's Corner.</doc> <doc id='5'>Our tenants in these assets also have excellent credit, but we do plan to recycle these assets as market opportunities support reasonable sale values. Our strategy is straightforward and pretty simple. We allocate capital to durable demand locations adjacent to priority defense missions, and we do that primarily through low- risk, highly pre-leased development. Occasionally, we get an opportunity to redevelop an asset or reposition, but development is our major strategy. Of course, we maintain a strong investment grade-rated balance sheet. Our competitive advantage really falls into four pillars. We have an operating platform of experienced and credentialed workforce. We've been serving the U.S. government as a landlord for over 30 years, and over that 30-year period, we've reached the point where over 40% of our employees are cleared to design, build, and operate the highest security level assets in the U.S. DoD.</doc> <doc id='6'>Over those years, we've also accumulated immense development experience that includes SCIFs, anti-terrorism force protection, data center, and other specialized mission critical facilities for the U.S. government. As I mentioned, we have a 30-year track record of not only designing, building, but the important distinction is we actually operate the properties. Our teams are embedded with their secure customers as part of the delivery vehicle for the mission. This is all built upon advantage land positions that we identified years ago, made investments in land, and we continue to develop on land we primarily own. To wrap it up, we are a specialized REIT. We're not correlated with the broader economy because we're deeply correlated with the defense industry.</doc> <doc id='7'>Our assets have strategic features and locations. There's little risk of work-from-home across our portfolio, and we've enjoyed strong demand for new development and vacancy leasing for years.</doc> <doc id='8'>There's four main points I'd like you to leave with today. First, we have strong underlying tailwinds from the growth in the defense budget, the funding for the Golden Dome, Defense Shield for the United States, and the recently announced relocation of U.S. Space Command headquarters from Colorado Springs to Huntsville. I might add, it will go on the land that we control, and we will develop the properties. The second point is growth. In 2025, we're forecasting nearly 4% FFO per share growth at the midpoint of our guidance, and that would mark our seventh consecutive year of FFO growth. We've increased the dividend nearly 11% over the last three years, and we are the only office REIT to raise the dividend in both 2023 and 2024, and we did it again in 2025. The third key point is leasing.</doc> <doc id='9'>We're very confident we'll meet or exceed our leasing targets. We set an initial goal of 400,000 square feet of vacancy leasing. We achieved over 350,000 in the first half. We elevated our guidance modestly, and we're very confident we'll deliver that. Fourth, we set a guidance of committing $225 million to new developments over the year. At mid-year, we're at $50 million. We are in advanced negotiations with six different tenants for build- suit solutions, three of which we think we'll secure during the remaining part of the year, and that will achieve 我们的目标。Finally, I'd like to point out we're still at a great value at $30.44, trading at a mere 11.4 times FFO and only two turns above our 10-year low. We have a 4% dividend yield, and we trade at a 9% discount to our NAV. It's a good time to buy our share.</doc> <doc id='10'>Mithal, back to you, Yana.</doc> <doc id='11'>Speaker0 Thank you, Steve. Following up on the correlation with the defense industry, if you could help us with your defense budget outlook and what are the key takeaways from the One Big Beautiful Bill and then the president's budget request for fiscal 2026? Speaker2 The One Big Beautiful Bill was really unusual in that the Congress pre-appropriated $150 billion for the next five years. Within that pre-appropriated amount, $113 billion will occur in fiscal year 2026, which starts on October 1. That adds $150 billion to the current base defense budget of, call it, $833 billion. It represents a 13% increase, the largest nominal increase in defense spending in a single year over the last 25 years, and the second biggest percentage increase. It sets a strong backdrop for our ability to generate business out of that funding. We guide investors to expect incremental leasing and development opportunities from defense budget increases trailing 12 to 18 months as that money has to get matriculated its way through the government program of procuring new contracts, issuing those contracts to contractors, finalizing awards, and then we lease space. It's a pretty exciting time.</doc> <doc id='12'>Speaker0 The president's budget? Speaker2 The president's initial budget is right on top of last year's budget, so it's $831 billion. That's what's been submitted to Congress. It's not unusual, it's almost common that by the time it makes its way through the House and Senate, it actually grows. Base case is flat base budget from last year. It wouldn't surprise me at all if it increases by a couple of %.</doc> <doc id='13'>Speaker0 This morning we had a policy panel, and they kind of talked to the potential risks of a government shutdown. Does that in any way potentially impact or delay rent payments? Speaker2</doc> <doc id='14'>No, but it usually represents a good time to time our stock because people think it's going to hurt us, and it doesn't. If we lose a little bit on our price, you should time your buy to that. Our leases are covered. I forget the act, but the U.S. government is required to pay our leases. The missions we support are all essential missions, and they will work through any shutdown that does occur. The last time we had a shutdown at one of our locations, the only impact that occurred is the line of cars waiting to get on base got longer because they deemed the security access point as non-essential and reduced it by half. Government shutdowns are not a factor for our company.</doc> <doc id='15'>Speaker0 Thank you. There was some big, exciting news last week with the relocation of U.S. Space Command headquarters to Huntsville. You mentioned this could be a great opportunity if maybe you can give us some more color and details around this.</doc> <doc id='16'>Speaker2 Yeah, so to give you some history, Space Command, Space Force was initiated by President Trump. By the end of his term, there was competition that occurred to identify the best place for the unified combatant command for space called Space Command. It was determined that Huntsville was the best location on the Redstone Arsenal. When President Biden came into office, it was contested several times by locations that didn't win the contest. In each case, it was readjudicated for Huntsville and Redstone Arsenal. Through a presidential order, it was maintained in Colorado Springs, but it was never funded properly to create the facilities they need. That decision was reversed last Tuesday. Appropriations have been set aside to build a new command for Space Command.</doc> <doc id='17'>It's been publicly announced that it will be on the enhanced use lease that COPT Defense Properties has on Redstone Arsenal land, and we will be the developer. It looks like that development will represent three buildings, 450,000 square feet to 480,000 square feet, to move the entirety of the command to the arsenal in two years or less. We're the only solution that can get them to facilities they so badly need that have been politicized for five years and get the mission in its proper form. Beyond the command, the command has led us to expect that the contractor support tail that they currently expect to follow them could be twice as big as the area required for the command.</doc> <doc id='18'>It would apply another 1 million square feet of development opportunity over the coming years as the new facility is constructed, the SCIFs are completed and certified, the command's relocated, and the contractor's following.</doc> <doc id='19'>Speaker0 Can you let us know maybe the timeline around that initial three buildings? Speaker2 We're ready to start. We've been planning these buildings for a long time. We had developed this plan over five years ago. We've prepared the land with utilities, and we're ready to commence. We'll start one building very shortly. We wouldn't start that building without a signed lease. As we get a lease document formulated, we'd sequentially develop the next two right behind it.</doc> <doc id='20'>Speaker0 Great. Thank you. Any questions in the room? Speaker1 When you enforce a lease with a company, what kind of knowledge do they take? Are they allowed to take this? Speaker2 Our company? We kill them. You got to have a little fun. It's the end. It's the last comment here. No, you know, we've got an amazing history of long-term service to the company through retirement. It's staggering. Over a</doc> <doc id='21'>third of our employees have been with us for like 20 years or more. Those that tend to retire, they stay pretty involved with us. We maintain very good relationships with them, and rarely do we see anybody leave to go to a competitive company. Not that there is one that's strictly competitive.</doc> <doc id='22'>Speaker1 The one million square feet of contractor, I guess the wireless, for lack of a better word, what's your thought about how much of that you will? Speaker2 It's a little less clear, Jordan. First of all, how much will we see? To the extent it comes, it's a guidance from the government for our expectations. We started our Redstone development with our first building in 2011, and we've grown that to 24 buildings and 2.5 million square feet, not quite half the capacity that we can develop. We have rarely lost a new tenant to another location in Huntsville because of the advantages of being on our development. My expectation is we would get the lion's share, and by that, if it wasn't over 90%, I'd be surprised. When it comes, these are contractors supporting the mission. Until the mission's ready to move, I don't think they're going to relocate. Certainly, if they're going to require SCIF, they're going to have to build in a lot of time to have that SCIF created and provisioned.</doc> <doc id='23'>It's a very time-consuming, very technical process. My guess is we'd start to see firm commitments to relocate lease space and start the SCIF process in roughly a year.</doc> <doc id='24'>Speaker1 Will there be a number of pieces as you develop? Speaker2 It's too early for me to know that. I don't think it'll, we expect our delivery from building one through three to be a matter of a month or so, not longer periods of time. What their actual strategy is to populate, I can't speak to that. We've routinely developed our defense contractor buildings over the last three years at 8.5% cash on cash. Often, by the time we punch out the project, it accretes up. No, it's just cash on cash. Initial, not average, not capped cash.</doc> <doc id='25'>Speaker1 I need to walk off. I don't see a clear gate economics given the fact every month it's so long without suicide and panic off. The ROC is also pretty high.</doc> <doc id='26'>Speaker2 We are always looking to do better than I say we do. I don't like to make statements I can't back up.</doc> <doc id='27'>Speaker0 Great. Maybe turning over to the Golden Dome, the opportunity, and just overview what exactly that entails.</doc> <doc id='28'>Speaker2 The Golden Dome's a fascinating initiative, maybe one of the biggest our DoD has committed to in 30 years. It represents creating an anti-missile defense shield for the United States of America, the entire country. Currently, we're protected by what's called GMD, Ground Missile Defense, and Ground-Based Missile Defense. That program is run out of the Redstone Arsenal and the contractors in our buildings at Redstone Gateway. This is elevating that from just a defense against intercontinental ballistic missiles to any missile of any form. Initially, we're advised that it will be an enumeration of disparate technologies from a wide variety of contractors combined and integrated into a cohesive defense structure distributed across the country. Eventually, new technology will have to be advanced and created to both improve identification of threats and potentially target them from space.</doc> <doc id='29'>The initial budget is estimated to be $175 billion, and they would like it to be operational by 2029 or 2030. The One Big Beautiful Bill appropriated $25 billion for a down payment on the system, and that is in the fiscal year 2026 spend. That implies $150 billion of incremental investment over, call it, the next four years to integrate current technology, advance, improve, or new solutions, and deploy. It's pretty exciting. The Missile Defense Agency is at Redstone Arsenal, and it will be the primary vehicle for coordinating all this activity. Beyond Space Command, this development of a new system will be parallel to it. We expect that'll