Stephen Budorick, president and CEO of COPT Defense Properties (NYSE: CDP), sat down for a video interview at Nareit's REITweek: 2026 Investor Conference in New York, June 1-4.
Budorick said the company's consistent operating performance, disciplined capital deployment, and favorable defense spending trends continue to support long-term growth.
He attributed COPT's double-digit growth in both its dividend and FFO per share since 2022 to three factors: strong occupancy, exceptional tenant retention, and steady investment activity.
"We've been able to keep our portfolio highly occupied, north of 94% over that period of time," he said. "We have an amazing tenant retention rate. Our retention rate nears 80% versus an industry average above 43%, which allows us to be very efficient with our capital."
Budorick added that the company has grown FFO by 15%, AFFO by 30%, while deploying roughly $270 million annually into well-leased acquisitions and development projects that continue to build cash flow.
He also discussed Moody's recent upgrade of COPT's investment-grade credit rating, calling it recognition of the company's strong operating performance through the pandemic, elevated inflation, and higher interest rates.
Looking ahead, Budorick expects rising U.S. defense spending to create significant opportunities for COPT's portfolio.
"I think it's a pretty exciting time to be doing business with the U.S. government and defense contractors," he said.