Stephen Budorick, president and CEO of COPT Defense Properties (NYSE: CDP), sat down for a video interview at Nareit's REITweek: 2024 Investor Conference, held in New York June 3-6.
Budorick highlighted the success of the REIT’s strategy of focusing on assets serving national defense missions. He pointed out the company's impressive performance metrics, including a nearly 95% occupancy rate across the office portfolio and nearly 97% for defense properties.
Notably, the first quarter's retention rate of 78% doubled the industry norm for office companies, indicating robust tenant loyalty. Despite the industry's broader challenges, COPT Defense Properties delivered 160,000 square feet of vacancy leasing, demonstrating sustained growth opportunities.
Budorick addressed investor inquiries regarding valuation, acknowledging the discrepancy between the company's low multiple and its consistent growth rate. He reassured investors of the long term rewards, emphasizing the company's commitment to delivering results and creating underlying asset value.
Regarding ongoing initiatives, Budorick underscored the REIT’s adherence to a strategy laid out in 2016, focusing on investments supporting priority defense missions and completing low risk new developments. He emphasized continuity in their approach, indicating confidence in its efficacy and the sustained strength of their business.