Slides
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Results for 3rd Quarter 2026 OCTOBER 29, 2026 DEVELOPMENT PROJECT: 8500 Advanced Gateway Huntsville, AL
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Table of Contents 2 RESULTS FOR 3RD QUARTER 2026 3 UPDATED 2026 GUIDANCE 6 FACTORS SUPPORTING GROWTH 9 PORTFOLIO UPDATE 15 CONCLUSION 19 APPENDICES: 23 Safe Harbor 24 Definitions + Glossary 25 Reconciliations 30
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3 Results for 3rd Quarter 2026
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Strong 3rd Quarter 2026 Results 4 3Q26 YTD FFOPS, As Adjusted for Comparability $0.71 $2.11 FFO per Share Growth Year-Over-Year 2.9% 4.5% 3Q26 Results were 2-cents Above Midpoint of Guidance Met or Exceeded Guidance Each Quarter Over the Past 35 Quarters Increase in Same Property Cash NOI Total Portfolio 3.2% 5.3% Defense/IT Portfolio 4.4% 7.1% Occupancy + Leased Rate Same Property Portfolio 93.9% Occupied Occupancy Rate > 93% for 13 Consecutive Quarters 94.9% Leased Occupancy + Leased Rate Defense/IT Portfolio 95.2% Occupied Occupancy Rate > 94% for 15 Consecutive Quarters 96.2% Leased Leasing Performance Total Leasing 842,000 SF 3.0M SF Vacancy Leasing 222,000 SF 453,000 SF Investment Leasing 75,000 SF 491,000 SF Renewal Leasing 545,000 SF 2.1M SF Retention Rate Total Portfolio 70% 80% Change in Cash Rent on Renewals Total Portfolio 8.5% 4.3%
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$88M 3.2% 545,000 SF 5 $0.71 • 2-cent beat vs. midpoint of guidance • Benefited from: • Lower than anticipated net operating expenses • Timing of R&M expense • Higher space recapture fees, and • Higher net development fees • Partially offset by: • 1.3-cents of dilution from Exchangeable Notes • Driven by cash rents starting on development and acquisition leases which commenced in prior years • Partially offset by lower real estate tax refunds • 3Q26 6300 Redstone Gateway $65M Contractor Inventory • 3Q26 2200 Rideout Road $23M Contractor Inventory • Tenant Retention = 70% • Recaptured 2 spaces from sub-optimal tenants, which reduced retention by 11 percentage points • Columbia Gateway: Early termination of a non-defense tenant • Backfilled 100% of space with a defense contractor • Redstone Gateway: Early termination of a defense tenant • Advanced negotiations to backfill 75% of space with a top 10 U.S. defense contractor, and actively touring the remaining space • Cash and Straight-line Rent Spreads = 8.5% and 20.3%, respectively • Cash and Straight-line Rent Spreads = 0.7% and 11.0%, respectively (ex 3 data center shell renewals) 222,000 SF 75,000 SF • Weighted average lease term of 7 years • 195,000 SF in Defense/IT Portfolio • 27,000 SF in Other Segment • 3Q26 8500 Advanced Gateway 75,000 SF FFO PER SHARE INCREASE IN SAME PROPERTY CASH NOI YOY CAPITAL COMMITMENT TO NEW INVESTMENTS RENEWAL LEASING INVESTMENT LEASING VACANCY LEASING Commentary on 3rd Quarter 2026 Results •
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6 Updated 2026 Guidance
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7 1. Dollars are in millions (except per share data). 2. Same Property metrics in 2025 refer to the 2025 Pool. FY 2025 FY 2026 UPDATED GUIDANCE Actual Low Midpoint High EPS $1.34 $1.43 $1.44 $1.45 FFOPS, As Adjusted for Comparability $2.72 $2.79 $2.80 $2.81 Year-Over-Year Growth 5.8% — 2.9% — KEY ASSUMPTIONS 2026 Same Property Pool: % Change in Cash NOI 4.1%2 4.0% 4.25% 4.5% Year-End Occupancy 94.2%2 93.5% 94.0% 94.5% Leasing: Tenant Retention 78% 79.0% 80.0% 81.0% Change in Cash Rents on Renewals 1.1% 2.75% 3.0% 3.25% Vacancy Leasing 557,000 SF 625,000 SF INVESTMENT ACTIVITY Capital Invested in Development / Acquisitions $234 $230 $240 $250 Target Capital Commitment to New Investments $278 $375 FY 2026 Guidance Summary1 Please see the Company's 2026 Guidance press release issued 2/5/26 for Management Commentary on initial 2026 guidance. See Page 7 for Commentary Green highlighted rows = Increase to guidance Yellow highlighted row = Decrease to guidance
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FFOPS² Same Property % Change in Cash NOI Tenant Retention Vacancy Leasing Capital Invested in Dev. / Acq. Capital Commitment to New Investments MIDPOINT STATISTICS +$0.02 to $2.80/sh implies 2.9% YoY growth +25 basis points 2.5% +150,000 SF +$15 million +$40 million DRIVEN BY • 1-cent from space recapture fees • 1-cent of lower dilution from Exchangeable Notes (3-cents of total dilution in 2026) • Based on 3Q26 outperformance • (~400) bps impact to retention from 3 strategic non-renewals which we have/will orchestrate, primarily to accommodate expansion of existing tenants • Outperformance YTD, particularly in Columbia Gateway + strong pipeline of deals throughout the Defense/IT Portfolio • Ahead of schedule on several development projects • Increased security requirements for San Antonio development project, with increase in rent to maintain yield FY 2026 Guidance Updates1 FY 2025 FY 2026 INITIAL GUIDANCE AS OF 4Q 2025 UPDATED GUIDANCE AS OF 2Q 2026 UPDATED GUIDANCE AS OF 3Q 2026 Actual Low Midpoint High Low Midpoint High Low Midpoint High FFOPS2 $2.72 $2.71 $2.75 $2.79 $2.76 $2.78 $2.80 $2.79 $2.80 $2.81 Dilution from Exchangeable Notes3 — ($0.01) ($0.04) ($0.03) Same Property % Change in Cash NOI 4.1%4 2.0% 2.5% 3.0% 3.75% 4.0% 4.25% 4.0% 4.25% 4.5% Tenant Retention 78% 75.0% 80.0% 85.0% 80.0% 82.5% 85.0% 79.0% 80.0% 81.0% Change in Cash Rents on Renewals 1.1% 1.0% 2.0% 3.0% 2.75% 3.0% 3.25% Vacancy Leasing (000s) 557 SF 400 SF 475 SF 625 SF Capital Invested in Dev. / Acq. $216 $200 $225 $250 $230 $240 $250 Target High Target Capital Commitment to New Investments $278 $225 $250 $275 $335 $375 $375 Yellow highlighted row = Decrease to guidance Green highlighted rows = Increase to guidance 1. Dollars are in millions (except per share data). 2. Diluted FFOPS, as adjusted for comparability. 3. Share count dilution required by GAAP for exchangeable notes is incorporated into FFOPS guidance. 4. Same Property metrics in 2025 refer to the 2025 Pool. 8
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9 Factors Supporting Growth
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$599 $655 $675 $694 $697 $729 $799 $826 $833 $840 $1,074 $147 DOD Base Budget Mandatory Funding/Reconciliation 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027F $500 $600 $700 $800 $900 $1,000 $1,100 10 Represents a Monumental Increase Current dollars, in billions. 1. Historical data (2017–2027) is pulled from Table 2-1 of the National Defense Budget Estimates for FY 2027 (“Green Book”). 2. DOD Base Budget (051) numbers from 2017–2020 include funding for overseas contingency operations ("OCO"). The OCO funding category was discontinued in 2021, with direct war costs and enduring operations accounted for in the DOD base budget. 3. Discretionary Budget Authority with Mandatory Reconciliation Funding is based on the FY 2027 DOD Budget Request. +28% over last year +47% over last 5 years +79% over last 10 years FY 2027 BASE BUDGET REQUEST | $1.1T • 28% increase over FY 2026 Enacted • “We don’t cut the baseline budget in defense...this is going to be the new normal” – Rep. Mike Rogers, Chairman of the House Armed Services Committee $987 1, 2 1, 2 1, 2 1, 2 1 1 1 3 FY 2017–FY 2026 | BASE BUDGET GREW AT A 3.8% COMPOUND ANNUAL RATE FY 2027 BASE BUDGET EQUATES TO $1,074 28% Increase FY 2027 DOD Base Budget Request 2 8% Increase 3 3.8% CAGR
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Portfolio Supports Priority DOD Missions 11 • Concentration of revenues among high credit tenants generates resilient cash flows • Virtually all U.S. Government leases are under the Procurement Authority of the Mission • GSA leases account for <1% of Total ARR 1. GAAP NOI % is for the nine months ended September 30, 2026. 2. As of September 30, 2026. 3. SF includes 100% of 24 joint ventured data centers; % of GAAP NOI is based on COPT Defense’s share. DEMAND DRIVER TOTAL SF (000s) % LEASED % GAAP NOI1 Fort Meade/BW Corridor 9,403 94% 45% Redstone Arsenal 2,525 98% 11% NoVA Defense/IT 2,644 95% 13% Lackland AFB 1,143 97% 8% Navy Support 1,271 89% 4% Data Center Shells3 6,330 100% 12% Defense/IT 23,316 96% 93% Other 1,987 82% 7% Total Portfolio 25,303 95% 100% TOTAL PORTFOLIO BY DEMAND DRIVER2 ONE-OF-ONE: NO OTHER REIT HAS A COMPARABLE STRATEGY ONLY PUBLIC REIT FOR SECURED, SPECIALIZED SPACE WITH CREDENTIALED PERSONNEL 93% OF GAAP NOI FROM DEFENSE/IT PORTFOLIO¹
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External Growth from Investment 12 Developments 1Q26 620 Guardian Way $146M 1Q26 410 Goss Road $57M 3Q26 RG 6300 $65M 3Q26 RG 2200 $23M Acquisitions 2Q26 Land + Ground Lease | Mission Ridge $43M TOTAL $334M CAPITAL COMMITTED TO NEW INVESTMENTS • 5 projects totaling $334M in 2026 to date ~$40M remaining in 4Q26 • 3Q26 development starts consist of RG 6300 (175K SF) + RG 2200 (59K SF) FUTURE OPPORTUNITIES Current dollars, in thousands. 1. As of September 30, 2026. 2. Current 2026 guidance target. ~1.1M SF D E V E L O P M E N T L E A S I N G P I P E L I N E ~1.2M SF P O T E N T I A L F U T U R E O P P O R T U N I T I E S $528M D E V E L O P M E N T S 1.1M SF | 64% leased1 ACTIVE DEVELOPMENT Allocating Capital to Projects at our Defense/IT Locations is the Foundation for External Growth $265,000 $389,000 $214,000 $280,000 $212,000 $278,000 2020 2021 2022 2023 2024 2025 2026E $— $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 Current Target $334,000 Achieved ~$40,000 Remaining 100% OF INVESTMENTS SINCE 2016 FOCUSED ON DEFENSE/IT ASSETS Average (2020–2025)Defense/IT $375,0002 A V E R A G E = $ 2 7 3 M •
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MOODY’S UPGRADE | MARCH 2026 • Upgrade to Baa2 | Stable Outlook • “The ratings upgrade reflects the • Strong operating performance of the REIT’s specialized office portfolio, • Solid EBITDA/Interest Expense ratio, and • Income growth from assets under development” – Moody’s 6.3x 6.0x 6.1x 6.0x 5.9x 5.9x 5.8x 5.7x 6.0x 5.9x 5.8x 5.6x Debt/EBITDA Debt adj for fully leased invest. prop./EBITDA 2021 2022 2023 2024 2025 3Q26 5.0x 5.2x 5.4x 5.6x 5.8x 6.0x 6.2x 6.4x Strong Balance Sheet Supports Growth 13 2025: INCREASED DEBT CAPACITY BY $400M • Recast Revolving Credit Facility1 • Upsized by $200M to $800M • Extended maturity by 3 years to 2030 • Secured Revolving Credit Agreement2 • $200M facility to fund development ABILITY TO SELF-FUND INVESTMENT • Generating cash flow after the dividend to fund the equity component of ~$300M for development/acquisition investments annually on a leverage neutral basis • No external equity required • Debt component funded by Revolving Credit Facilities and bond issuances MAINTAINING OUR STRONG BALANCE SHEET 1. Closed on October 6, 2025 and maturity date assumes our exercise of two six-month extension options. 2. Closed on October 16, 2025. 3. Net debt to in-place adjusted EBITDA ratio. 4. Pro forma net debt to in-place adjusted EBITDA ratio applies to years 2021 and 2022. 5. Pro forma net debt adjusted for fully leased investment properties to in-place adjusted EBITDA ratio applies to years 2021 and 2022. 3,4 5 NET DEBT TO EBITDA 5.9x 3
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Well-Staggered Debt Maturity Schedule 14 PRE-FUNDED 2026 BOND MATURITY • Issued $400M of 4.50% Senior Notes due 2030 on October 2, 2025 at a credit spread of 95 bps • Proceeds were used to repay $400M of 2.25% Senior Notes at maturity on March 16, 2026 SIGNIFICANT UNENCUMBERED POOL OF ASSETS • Unencumbered portfolio = 94% of total NOI from real estate operations • Secured debt accounts for only 6.5% of debt outstanding Strategy is to Refinance Debt Maturities + Term Out Debt Component of Development Investment in Public Fixed Income Market DEBT MATURITY SCHEDULE AS OF 9/30/26 (000s) 1. Term loan balance of $50.0M is included in 2028 assuming our exercise of a 12-month extension option. 2. Revolving Credit Facility balance of $234.0M is included in 2030 assuming our exercise of two six-month extension options. Also included is our Revolving Development Facility balance of $170.0M million assuming our exercise of a 12-month extension option. $395,000 $400,000 $634,000 $600,000 $400,000 $170,000 Unsecured Secured 2028 2029 2030 2031 2032 2033 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 1 2NO MEANINGFUL DEBT MATURITIES UNTIL SEPTEMBER 2028
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15 Portfolio Update
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Square Feet of Vacancy Leased (000s) Defense/IT Portfolio % Leased + Occupied 355 592 361 388 424 453 61 83 91 113 133 120 Defense/IT Other Current Target % Leased % Occupied 2020 2021 2022 2023 2024 2025 2026 YTD 0 100 200 300 400 500 600 700 800 85% 88% 90% 93% 95% 98% 100% Increased Vacancy Leasing Target for 2026 Again 16 LEASING VOLUME ON-PACE IN 3Q26 E X E C U T E D2 453,000 SF W A L T1 7.2 YEARS 113% of 2026 Target 2026 LEASING TARGET = 400,000 SF •Xxx,000 SF Executed as of 4/24/26 •Xxx,000 SF in Advanced Negotiations •Xxx,000 SF Executed + Advanced Negotiations •Amounts to x% of full year target VACANCY LEASING IN OPERATING PORTFOLIO (000s)3 2020 2021 2022 2023 2024 2025 2026E 416 SF 616 SF 801 SF 452 SF 500 SF 557 SF 625 SF O C C U P I E D 94% L E A S E D 95% TOTAL PORTFOLIO 2 24 52 E X E C U T E D 152,000 SF A D V A N C E D N E G O T I A T I O N S 115,000 SFAs of April 24, 2026 2026 LEASING TARGET = 625,000 SF E X E C U T E D + A D V A N C E D N E G O T I A T I O N S 267,000 SF Amounts to 67% of full year target 4 719 VACANCY LEASING1 INVESTMENT LEASING 2 2026 YTD 504,000 SF 3Q26 222,000 SF EXECUTED + ADVANCED NEGOTIATIONS 710,000 SF 4Q26 TO DATE 51,000 SF CURRENTLY IN ADVANCED NEGOTIATIONS 206,000 SF % OF 2026 UPDATED TARGET OF 625,000 SF 114% 2026 YTD 491,000 SF 3Q26 75,000 SF 2026 Target Increased by 150,000 SF to 625,000 SF (+ 225,000 SF vs Initial Target) 1. As of October 28, 2026. 2. As of September 30, 2026. 3. Percent occupied and leased statistics in the graph are for Defense/IT Portfolio. 4. Current 2026 Vacancy Leasing Target. Achieved Expected 1 4Q26 TO DATE
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Sector-Leading Tenant Retention 17 3Q26 TOTAL RETENTION RATE OF 70% • Recaptured 2 spaces from sub-optimal tenants, which reduced retention by 11 percentage points • Columbia Gateway: Early termination of a non-defense tenant • Backfilled 100% of space with a defense contractor • Redstone Gateway: Early termination of a defense tenant • Advanced negotiations to backfill 75% of space with a top 10 U.S. defense contractor, and actively touring the remaining space CURRENT 2026 GUIDANCE OF 79%–81% • Initial guidance was 75%–85% • Increased to 80%–85% in 1Q26 • Decreased to 79%–81% in 3Q26 | Impacted by 3 strategic non-renewals • Excluding these 3 non-renewals, retention would be ~84% RENEWAL RATES SINCE 2020 CDP's retention rate is nearly double that of the Office REITs that report this metric 1. Historical averages are calculated based on a weighted average retention rate by renewal leasing square feet. 2. Office REIT 5-Year Weighted Average is based on the weighted average square feet on renewals for BDN, BXP, HPP, and KRC. 3. The midpoint of current 2026 guidance. 10-YEAR AVERAGE= 79% (2016–2025)1 5-YEAR AVERAGE= 79% (2021–2025)1 Current Guidance3 2 81% 74% 72% 80% 86% 78% 80% CDP 5-Year Weighted Average (2021–2025) Office REIT 5-Year Weighted Average (2021–2025) 2020 2021 2022 2023 2024 2025 2026E 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Guidance Midpoint TRACK RECORD OF STRONG TENANT RETENTION RATES
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18 Large Lease Expirations | 2Q26 – 4Q28 Leases U.S. Government 5 Defense/IT | 10 Defense Contractors 4 full building 12 Data Center Shells single-tenant/full building 6 Other Segment 1 Expect ~90% Retention on Large Leases Expiring Over the Next 30 Months 30 MONTH OUTLOOK AS OF 2Q26 3.5M SF 35 Large Leases Remaining 56K SF 1 Large Lease Non-Renewed 580K SF Renewed 3 Large Leases 2.9M SF Small Leases (≤ 50,000 SF) 4.1M SF 39 Large Leases (> 50,000 SF) 7.0M SF Set to Expire Between 2Q26–4Q28 Expected Retention = 65–75% Expected Retention = ~90% Achieved Retention = 91% Expected Retention = ~90% Space has been Backfilled Leases U.S. Government 13 full building 13 Defense/IT | 10 Defense Contractors 4 full building 12 Data Center Shells single-tenant/full building 6 4.1M SF of Large Leases to Expire Between 2Q26–4Q28 59% of Total Expiring SF | 58% of Expiring ARR as of 2Q26 580K SF Renewed in 3Q26 Retained 91% of SF Leases % of Total SF U.S. Government1 14 full building 19 50% Defense/IT | 8 Defense Contractors2 5 full building 13 25% Data Center Shells single-tenant/full building 5 21% Other Segment 2 4% Leases Data Center Shells single-tenant/full building 3 1. Includes the 8 large leases totaling 950,000 SF with the U.S. Government that are currently reported as 2026 expirations and were included in the 2Q24–4Q26 Large Lease population. 17 of the 19 leases are in buildings fully occupied by the U.S. Government. 2. 12 of the leases are with 8 separate Defense Contractors, 4 of which are full building leases.
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Conclusion STRONG RESULTS + CONTINUED GROWTH 19
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C O P T D E F E N S E ’ S F F O P S H A S C O M P O U N D E D A T 4 . 7 % P E R Y E A R F R O M 2 0 1 9 – 2 0 2 6 E 2 0 2 6 E F F O P S M I D P O I N T G U I D A N C E O F $ 2 . 8 0 I M P L I E S 2 . 9 % G R O W T H O V E R 2 0 2 5 R E S U L T S 20 Strong Growth in Profitability Actual ResultsInitial Guidance1 Current Guidance2 4.9% CAGR FFOPS, AS ADJUSTED FOR COMPARABILITY FFO, AS ADJUSTED FOR COMPARABILITY (000s) Actual Results Current Guidance4 1. The midpoint of initial diluted FFOPS guidance, as adjusted for comparability. 2. The midpoint of current diluted FFOPS guidance, as adjusted for comparability. 3. Excludes the benefit of the dilutive add-back of FFO attributable to redeemable noncontrolling interests of $1.96M. 4. The midpoint of current FFO guidance, as adjusted for comparability. See Appendix for reconciliations of diluted EPS to diluted FFOPS, as adjusted for comparability. $2.04 $2.08 $2.19 $2.34 $2.38 $2.51 $2.66 $2.75 $2.03 $2.12 $2.29 $2.36 $2.42 $2.57 $2.72 $2.80 2019 2020 2021 2022 2023 2024 2025 2026E $1.90 $2.00 $2.10 $2.20 $2.30 $2.40 $2.50 $2.60 $2.70 $2.80 $2.90 $229,344 $241,356 $260,326 $268,965 $275,913 $294,837 $313,704 $329,000 2019 2020 2021 2022 2023 2024 2025 2026E $200,000 $225,000 $250,000 $275,000 $300,000 $325,000 $350,000 34.7% CAGR 5.3% CAGR
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Attractive Investment Opportunity V alue Stock Price to 2026E FFOPS1 12.0x Growth Stock Compound Annual FFOPS Growth (2019–2026E) 4.7% Dividend Growth Increase in Dividend per Share (since 2022) 16.4% 1 . As of the closing price on October 28, 2026, and the midpoint of current 2026E FFOPS guidance, as adjusted for comparability. 21
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STRONG LEASING DEMAND AT EXISTING PROPERTIES 22 ~1.0M SF ~1.0M SFD E V E L O P M E N T L E A S I N G P I P E L I N E O F P O T E N T I A L O P P O R T U N I T I E S Actual Results Current Guidance2 FFOPS, AS ADJUSTED FOR COMPARABILITY 1. As of September 30, 2026. 2. The midpoint of current diluted FFOPS guidance, as adjusted for comparability. See Appendix for reconciliations. Continued Growth $2.03 $2.12 $2.29 $2.36 $2.42 $2.57 $2.72 $2.80 2019 2020 2021 2022 2023 2024 2025 2026E $1.90 $2.00 $2.10 $2.20 $2.30 $2.40 $2.50 $2.60 $2.70 $2.80 $2.90 FUTURE OPPORTUNITIES ~1.1M SF D E V E L O P M E N T L E A S I N G P I P E L I N E ~1.2M SF P O T E N T I A L F U T U R E O P P O R T U N I T I E S $528M D E V E L O P M E N T S 1.1M SF | 64% leased1 ACTIVE DEVELOPMENT COMMITTED $334M OF CAPITAL IN 2026 TO DATE TO NEW INVESTMENTS • Committed $88M of capital in 3Q26, with ~$40M remaining in 4Q26 BUDGET INCREASES EXPECTED TO CONTINUE TO DRIVE DEMAND • Appropriated increases and bipartisan support for future growth in Defense Budgets expected to continue to drive demand for existing and new development space CONSERVATIVE LEVERAGE PROFILE • Including a well-laddered debt maturity schedule and ample liquidity to fund investments 4.7% CAGR
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Appendices 23 SAFE HARBOR 24 DEFINITIONS + GLOSSARY 25 RECONCILIATIONS 30
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Safe Harbor Unless otherwise noted, information in this presentation represents the Company's consolidated portfolio as of or for the quarter ended September 30, 2026. This presentation may contain forward-looking statements within the meaning of the Federal securities laws. 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 we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we 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 we undertake no obligation to update or supplement any forward-looking statements. 24 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, 2025. Safe Harbor
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Definitions + Glossary 25 Definitions + Glossary ACQUISITION COSTS Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties. ADJUSTED BOOK Total assets presented on our consolidated balance sheet, net of lease liabilities associated with property right-of-use assets, and excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs and unconsolidated real estate joint ventures (“JVs”) cash and cash equivalents, liabilities, and accumulated depreciation and amortization (of intangibles on property acquisitions and deferred leasing costs) allocable to our ownership interest in the JVs. ADJUSTED EARNINGS BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION (“ADJUSTED EBITDA”) Net income or loss adjusted for the effects of interest expense, depreciation and amortization, gain on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs, and certain other expenses that we believe are not relevant to an investor's evaluation of our ability to repay debt. Adjusted EBITDA also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. ANNUALIZED RENTAL REVENUE (“ARR”) The monthly contractual base rent as of the reporting date (ignoring free rent then in effect and rent associated with tenant funded landlord assets) multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate JVs, we include the portion of ARR allocable to COPT Defense’s ownership interest. In instances in which we report ARR per occupied square foot, the measure excludes revenue from leases not associated with our buildings. ATFP Anti-terrorism force protection. AVERAGE ESCALATIONS Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year. BALTIMORE/WASHINGTON REGION Counties that comprise the Fort Meade/Baltimore Washington Corridor. As of September 30, 2026, 96 of COPT Defense’s properties were located within this defined region. Please refer to page 12 of COPT Defense’s Supplemental Information package dated September 30, 2026 for additional detail. BASIC FFO AVAILABLE TO COMMON SHARE AND COMMON UNIT HOLDERS (“BASIC FFO”) FFO adjusted to subtract (1) preferred share dividends, (2) income or loss attributable to noncontrolling interests through ownership of preferred units in COPT Defense Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to share-based compensation awards, and (5) issuance costs associated with redeemed preferred shares. With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”). Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions. BRAC Base Realignment and Closure Commission of the United States Congress, the most recent of which Congress established in 2005 to ensure the integrity of the base closure and realignment process. The Commission provided an objective, non-partisan, and independent review and analysis of the list of military installation recommendations issued by the Department of Defense (“DOD”) on May 13, 2005. The Commission's mission was to assess whether the DOD recommendations substantially deviated from the Congressional criteria used to evaluate each military base. While giving priority to the criteria of military value, the Commission took into account the human impact of the base closures and considered the possible economic, environmental, and other effects on the surrounding communities. C4ISR Command, Control, Communications, Computers, Intelligence, Surveillance & Reconnaissance.
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Definitions + Glossary (continued) 26 CASH NET OPERATING INCOME (“CASH NOI”) NOI from real estate operations adjusted: to eliminate the effects of straight-line rental adjustments, amortization of tenant incentives, amortization of intangibles and other assets included in FFO and NOI, lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms, and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants; and prospectively effective 4/1/26, for our investments in sales-type leases, to reflect scheduled lease payments, resulting in adjustments to include lease receivable principal amortization and exclude accretion of unguaranteed residual assets (this change was made prospectively effective 4/1/26 since these adjustments were not material until our acquisition of an investment in a sales-type lease on 4/23/26). Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements. Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics. In addition, revenue from lease termination fees and tenant-funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value. CASH RENT Monthly contractual base rent (ignoring rent abatements and rent associated with tenant funded landlord assets) multiplied by 12, plus estimated annualized expense reimbursements (average for first 12 months of term for new or renewed leases or as of lease expiration for expiring leases. DEBT/TOTAL MARKET CAPITALIZATION Gross debt, divided by our total market capitalization. DEFENSE/IT PORTFOLIO Properties in locations proximate to, or sometimes containing, key U.S. Government defense installations and missions. DEVELOPMENT LEASING PIPELINE Formerly called the Shadow Development Pipeline, this internally maintained schedule tracks potential future development leasing transactions for which the Company is competing and believes it has a 50% or greater chance of winning within the next 24 months. DEVELOPMENT PROFIT OR YIELD Cash NOI divided by the estimated total investment, before the impact of cumulative real estate impairment losses. DILUTED ADJUSTED FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHARE AND COMMON UNIT HOLDERS ("DILUTED AFFO") Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts, commissions, and premiums, and (e) amortization of settlements of debt hedges; (2) replacement capital expenditures (defined below); and (3) prospectively effective 4/1/26, for our investments in sales-type leases, to reflect scheduled lease payments, resulting in adjustments to include lease receivable principal amortization and exclude accretion of unguaranteed residual assets (this change was made prospectively effective 4/1/26 since these adjustments were not material until our acquisition of an investment in a sales- type lease on 4/23/26). Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. DILUTED FFO AVAILABLE TO COMMON SHARE AND COMMON UNIT HOLDERS ("DILUTED FFO") Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares. The computation of Diluted FFO (which includes discontinued operations, if any) assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. DILUTED FFO AVAILABLE TO COMMON SHARE AND COMMON UNIT HOLDERS, AS ADJUSTED FOR COMPARABILITY ("DILUTED FFO, AS ADJUSTED FOR COMPARABILITY") Diluted FFO or FFO adjusted to exclude: operating property acquisition costs (for acquisitions classified as business combinations); gain or loss on early extinguishment of debt; demolition costs on redevelopment and nonrecurring improvements; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense, and gains on debt extinguishment); loss on interest rate derivatives; and executive transition costs associated with named executive officers. Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Definitions + Glossary (continued)
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Definitions + Glossary (continued) 27 Definitions + Glossary (continued) DILUTED FFO PER SHARE Diluted FFO divided by the sum of the (1) weighted average common shares outstanding during a period, (2) weighted average common units outstanding during a period, and (3) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of Diluted FFO per share assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. DILUTED FFO PER SHARE, AS ADJUSTED FOR COMPARABILITY Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by the sum of the (1) weighted average common shares outstanding during a period, (2) weighted average common units outstanding during a period, and (3) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of this measure assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period. DISA Defense Information Systems Agency. EARNINGS BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND AMORTIZATION (“EBITDA”) See Adjusted EBITDA. EUL Enhanced Use Lease whereby the DOD grants a lease interest to a private developer in exchange for rent that the DOD can use to improve the related defense installation. FUNDS FROM OPERATIONS ("FFO" OR "FFO PER NAREIT") Net income or loss computed using GAAP, excluding gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that we use the National Association of Real Estate Investment Trust’s (“Nareit”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs. GROSS DEBT Debt reported on our consolidated balance sheet adjusted to exclude net discounts, commissions, and premiums and deferred financing costs, as further adjusted to include outstanding debt of unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. GSA United States General Services Administration. IN-PLACE ADJUSTED EBITDA Adjusted EBITDA, as further adjusted for: (1) certain events occurring in a three month period to reflect Adjusted EBITDA as if the events occurred at the beginning of such period, including; (a) properties acquired, placed in service or expanded upon subsequent to the commencement of a period made in order to reflect a full period of ownership/operations; (b) properties removed from service or in which we disposed of interests; (c) significant mid-period occupancy changes associated with properties recently placed in service or acquired as if such occupancy changes occurred at the beginning of such period; and (2) adjustments to deferred rental revenue associated with changes in our assessment of collectability. The measure also includes adjustments for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that the pro forma adjustments described above are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. INTEREST DURATION The length of time for which an interest rate on debt is fixed. INVESTMENT SPACE LEASED Vacant space leased within two years of the shell completion date for development properties or acquisition date for operating property acquisitions. NGA National Geospatial Intelligence Agency. NET CONSTRUCTION CONTRACT AND OTHER SERVICE REVENUES Net operating income from real estate services such as property management, development and construction services primarily for the Company's properties but also for third parties. Construction contract and other service revenues and expenses consist primarily of subcontracted costs that are reimbursed to the Company by the customer along with a management fee. The operating margins from these activities are small relative to the revenue.
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Definitions + Glossary (continued) 28 PORTFOLIO 9/30/26 6/30/26 3/31/26 12/31/25 9/30/25 # of Properties Total Portfolio 208 208 207 207 204 Consolidated Portfolio 184 184 183 183 180 Defense/IT Portfolio 202 202 201 201 198 Same Property 203 203 203 203 203 % Occupied Total Portfolio 94.0 % 94.1 % 94.4 % 94.0 % 93.9 % Consolidated Portfolio 92.8 % 92.9 % 93.2 % 92.8 % 92.6 % Defense/IT Portfolio 95.2 % 95.1 % 95.6 % 95.5 % 95.4 % Same Property 93.9 % 94.5 % 94.2 % 93.9 % 93.9 % % Leased Total Portfolio 95.0 % 95.6 % 95.2 % 95.3 % 95.7 % Consolidated Portfolio 94.0 % 94.7 % 94.3 % 94.3 % 94.8 % Defense/IT Portfolio 96.2 % 96.4 % 96.4 % 96.5 % 97.0 % Same Property 94.9 % 95.4 % 95.1 % 95.4 % 95.7 % Square Feet (in thousands) Total Portfolio 25,303 25,303 25,155 25,147 24,585 Consolidated Portfolio 21,008 21,008 20,859 20,851 20,290 Defense/IT Portfolio 23,316 23,316 23,167 23,159 22,597 Same Property 24,557 24,557 24,557 24,557 24,557 Definitions + Glossary (continued) NET DEBT Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts, commissions, and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period. The measure also includes adjustments to gross debt for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. NET DEBT ADJUSTED FOR FULLY-LEASED INVESTMENT PROPERTIES Net debt less costs incurred on properties under development and on operating property acquisitions that were 100% leased. NET DEBT TO ADJUSTED BOOK Net debt divided by Adjusted book. NET DEBT TO IN-PLACE ADJUSTED EBITDA RATIO AND NET DEBT ADJUSTED FOR FULLY-LEASED INVESTMENT PROPERTIES TO IN-PLACE ADJUSTED EBITDA RATIO Net debt or Net debt adjusted for fully-leased investment properties divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four. NET OPERATING INCOME FROM REAL ESTATE OPERATIONS ("NOI") Consolidated real estate revenues; consolidated property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate JVs that are allocable to COPT Defense’s ownership interest in the JVs. PAYOUT RATIOS BASED ON: DILUTED FFO; DILUTED FFO, AS ADJUSTED FOR COMPARABILITY; AND DILUTED AFFO The sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership to the extent they are dilutive in the respective FFO per share numerators divided by the respective non-GAAP measures.
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Definitions + Glossary (continued) 29 Definitions + Glossary (continued) PRO FORMA NET DEBT, PRO FORMA NET DEBT ADJUSTED FOR FULLY-LEASED INVESTMENT PROPERTIES, PRO FORMA IN-PLACE ADJUSTED EBITDA AND ASSOCIATED RATIOS These measures and the ratios in which they are used adjust for the effect of noted dispositions of interests in properties that occurred subsequent to the end of reporting periods and before our release of financial results for such periods. The adjustments remove Adjusted EBITDA from real estate operations associated with the disposed interests in properties and adjust our net debt measures for resulting proceeds available for debt pay downs to reflect these measures and ratios as if such events occurring subsequent to a three month reporting period occurred at the beginning of such reporting period. We believe that these adjustments are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. REDEVELOPMENT Properties previously in operations on which activities to substantially renovate such properties were underway or approved. REPLACEMENT CAPITAL EXPENDITURES Tenant improvements and incentives, building improvements, and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office), (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there), or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. SAME PROPERTY Operating properties stably owned and 100% operational since at least the beginning of the prior year. SAME PROPERTY NOI AND SAME PROPERTY CASH NOI NOI, or Cash NOI, from real estate operations of Same Property groupings. SCIF Sensitive (or Secure) Compartmented Information Facility, or “SCIF,” in U.S. military, security, and intelligence parlance is an enclosed area within a building that is used to process classified information within formal access controlled systems (as established by the Director of National Intelligence). STABILIZATION Properties that are at least 90% occupied. STRAIGHT-LINE RENT Annual minimum base rents, net of abatements and lease incentives and excluding rent associated with tenant funded landlord assets, on a straight-line basis over the term of the lease, and estimated annual expense reimbursements (as of lease commencement for new or renewed leases or as of lease expiration for expiring leases). TOTAL MARKET CAPITALIZATION The sum of: (1) consolidated outstanding debt, excluding net discounts, commissions, and premiums and deferred financing costs; (2) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (3) the liquidation value of preferred shares and preferred units in our operating partnership. DEVELOPMENT PROPERTIES Properties under, or contractually committed for, development. VACANT SPACE LEASED Leasing of vacated second-generation space and vacant space leased in development properties and operating property acquisitions after two years from such properties’ shell completion or acquisition date.
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Reconciliations 30 Year Ended December 31, Three Months Ended Nine Months Ended 2019 2020 2021 2022 2023 2024 2025 9/30/26 9/30/26 Reconciliations of net income to diluted FFO and diluted FFO as adjusted for comparability (in thousands) Net income (loss) $ 200,004 $ 102,878 $ 81,578 $ 178,822 $ (74,347) $ 143,942 $ 159,534 $ 49,794 $ 138,492 Real estate-related depreciation and amortization 137,069 138,193 147,833 141,230 148,950 153,640 161,826 42,966 127,940 Impairment losses on real estate 329 1,530 — — 252,797 — — — — Gain on sales of real estate (105,230) (30,209) (65,590) (47,814) (49,392) — (3,350) (7,673) (14,697) Gain on sale of investment in unconsolidated real estate JV — (29,416) — — — — — — — Depreciation and amortization on unconsolidated real estate JVs 2,703 3,329 1,981 2,101 3,217 3,056 2,950 718 2,186 Gain on sale of real estate on unconsolidated real estate JV — — — — — — — — (1,276) FFO - per Nareit 234,875 186,305 165,802 274,339 281,225 300,638 320,960 85,805 252,645 Noncontrolling interests - preferred units in the Operating Partnership (564) (300) — — — — — — — FFO allocable to other noncontrolling interests (5,024) (15,705) (5,483) (4,795) (3,978) (3,855) (5,566) (1,342) (3,906) Basic FFO allocable to share-based compensation awards (905) (719) (777) (1,433) (1,940) (2,417) (2,171) (620) (1,840) Basic FFO available to common share and common unit holders 228,382 169,581 159,542 268,111 275,307 294,366 313,223 83,843 246,899 Redeemable noncontrolling interests 132 147 (11) (34) (58) 1,963 — — — Diluted FFO adjustments allocable to share-based compensation awards — — 32 109 150 188 387 63 190 Diluted FFO available to common share and common unit holders 228,514 169,728 159,563 268,186 275,399 296,517 313,610 83,906 247,089 Loss on early extinguishment of debt — 7,306 100,626 609 — — 66 — — (Gain) loss on early extinguishment of debt on unconsolidated real estate JVs — — — (168) — — 28 — — Loss on interest rate derivatives — 53,196 — — — — — — — Loss on interest rate derivatives included in interest expense — — 221 — — — — — — Demolition costs on redevelopment and nonrecurring improvements 148 63 423 — — — — 97 97 Executive transition costs 4 — — 343 518 285 — — — Non-comparable professional and legal expenses 681 — — — — — — — — Dilutive preferred units in the Operating Partnership — 300 — — — — — — — FFO allocation to other noncontrolling interests resulting from capital event — 11,090 — — — — — — — Diluted FFO comparability adjustments allocable to share-based compensation awards (3) (327) (507) (5) (4) (2) — (1) (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability $ 229,344 $ 241,356 $ 260,326 $ 268,965 $ 275,913 $ 296,800 $ 313,704 $ 84,002 $ 247,185 Reconciliations of denominator for per share measures (in thousands) Denominator for diluted EPS 111,623 112,076 112,418 112,620 112,178 112,899 113,304 115,919 115,009 Weighted average common units 1,299 1,236 1,257 1,454 1,509 1,672 2,083 2,237 2,177 Redeemable noncontrolling interests — 123 — — 38 842 — — — Dilutive effect of additional share-based compensation awards — — — — 424 — — — — Dilutive convertible preferred units — 171 — — — — — — — Denominator for diluted FFO per share, as adjusted for comparability 112,922 113,606 113,675 114,074 114,149 115,413 115,387 118,156 117,186 Diluted FFO per share, as adjusted for comparability $ 2.03 $ 2.12 $ 2.29 $ 2.36 $ 2.42 $ 2.57 $ 2.72 $ 0.71 $ 2.11 Reconciliations
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Reconciliations (continued) 31 Actuals Guidance Year Ended December 31, 2025 Year Ending December 31, 2026 Low High Reconciliations of diluted EPS to diluted FFOPS per Nareit and as adjusted for comparability (in dollars per share) Diluted EPS $ 1.34 $ 1.43 $ 1.45 Real estate-related depreciation and amortization 1.43 1.48 1.48 Gain on sales of real estate (0.03) (0.14) (0.14) Other FFO adjustments (0.02) — — Diluted FFOPS - Nareit 2.72 2.77 2.79 Demolition costs on nonrecurring improvements — 0.02 0.02 Diluted FFOPS - as adjusted for comparability $ 2.72 $ 2.79 $ 2.81 Reconciliations (continued)
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Reconciliations (continued) 32 Three Months Ended Three Months Ended 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 9/30/26 Reconciliations of net income to Adjusted EBITDA, in-place adjusted EBITDA, and pro forma in-place adjusted EBITDA (in thousands) Net income $ 14,965 $ 52,087 $ 34,820 $ 36,467 $ 39,396 $ 49,794 Interest expense 16,217 16,819 20,383 20,391 24,324 24,439 Income tax expense (benefit) 42 223 121 (24) 115 96 Depreciation and amortization 36,968 37,509 37,354 39,410 42,698 43,448 Gain on sales of real estate (25,879) (19,238) — — (32) (7,673) Adjustments from unconsolidated real estate joint ventures 763 1,033 1,911 1,681 1,818 1,797 Loss on early extinguishment of debt 41,073 267 — — 66 — Gain on early extinguishment of debt on unconsolidated real estate JVs — (168) — — — — Net gain on other investments — (595) — — (26) — Credit loss recoveries (88) (1,331) (1,288) (113) (644) (1,096) Business development expenses 628 794 445 758 508 488 Demolition costs on redevelopment and nonrecurring improvements (8) — — — — 97 Executive transition costs — 387 188 58 — — Adjusted EBITDA 84,681 87,787 93,934 98,628 108,223 111,390 Pro forma net operating income adjustment for property changes within period — 2,704 1,341 528 1,969 1,150 Change in collectability of deferred rental revenue — — (198) 1,646 127 32 Other 1,578 — — — — — In-place adjusted EBITDA 86,259 90,491 $ 95,077 $ 100,802 $ 110,319 $ 112,572 Pro forma NOI adjustment from subsequent event transactions (3,074) (2,903) Pro forma in-place adjusted EBITDA $ 83,185 $ 87,588 Annualized in-place adjusted EBITDA $ 345,036 $ 361,964 $ 380,308 $ 403,208 $ 441,276 $ 450,288 Annualized pro forma in-place adjusted EBITDA $ 332,740 $ 350,352 As of As of 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 9/30/26 Reconciliations of debt per balance sheet to net debt, net debt adjusted for fully-leased investment properties, proforma net debt, and pro forma net debt adjusted for fully-leased investment properties (in thousands) Debt per balance sheet $ 2,272,304 $ 2,231,794 $ 2,416,287 $ 2,391,755 $ 2,767,834 $ 2,579,733 Net discounts and commissions and deferred financing costs 25,982 23,160 28,713 23,262 23,466 19,267 COPT Defense's share of unconsolidated JV gross secured debt 26,250 52,100 52,613 53,750 75,250 75,250 Gross debt 2,324,536 2,307,054 2,497,613 2,468,767 2,866,550 2,674,250 Less: Cash and cash equivalents (13,262) (12,337) (167,820) (38,284) (274,986) (24,262) Less: COPT Defense's share of cash of unconsolidated real estate JVs (434) (456) (852) (2,053) (1,898) (1,332) Net debt 2,310,840 2,294,261 2,328,941 2,428,430 2,589,666 2,648,656 Costs incurred on fully-leased development properties (162,884) (95,972) (53,914) (18,774) (8,226) (112,988) Costs incurred on fully-leased operating property acquisitions — — — (17,034) — — Net debt adjusted for fully-leased investment properties $ 2,147,956 $ 2,198,289 $ 2,275,027 $ 2,392,622 $ 2,581,440 $ 2,535,668 Net debt $ 2,310,840 $ 2,294,261 Pro forma debt adjustments from subsequent event transaction proceeds (216,000) (189,000) Pro forma net debt 2,094,840 2,105,261 Costs incurred on fully-leased investment properties (162,884) (95,972) Pro forma net debt adjusted for fully-leased investment properties $ 1,931,956 $ 2,009,289 Ratios Net debt to in-place adjusted EBITDA ratio 6.7x 6.3x 6.1x 6.0x 5.9x 5.9x Pro forma net debt to in-place adjusted EBITDA ratio 6.3x 6.0x Net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio 6.2x 6.1x 6.0x 5.9x 5.8x 5.6x Pro forma net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio 5.8x 5.7x Reconciliations (continued)
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