A Look At COPT Defense Properties (CDP) Valuation After New Defense Build To Suit Lease Secured

New build-to-suit lease puts long-term project in focus COPT Defense Properties (CDP) has secured a build-to-suit lease with a Defense/IT tenant for a 236,000 square foot facility in Maryland, tied to a planned US$146 million capital commitment. Rent is scheduled to begin in the third quarter of 2028. This provides investors with a multiyear development timeline to follow as the company allocates new capital to its Defense/IT portfolio. See our latest analysis for COPT Defense Properties. At a share price of US$30.63, COPT Defense Properties has delivered an 8.7% 1 month share price return and an 11.4% year to date share price return. Its 5 year total shareholder return of 44.9% indicates that longer term holders have seen meaningfully different results from short term traders, with recent defense focused leasing activity adding fresh context to that track record. If this kind of defense related real estate story has your attention, it could be a good moment to see what else is happening across aerospace and defense stocks. So with CDP trading at US$30.63, sitting below an average analyst price target and carrying an intrinsic value estimate at a larger discount, is this a genuine opportunity or a market that has already priced in potential future growth? Most Popular Narrative: 7.9% Undervalued With COPT Defense Properties last closing at $30.63 against a narrative fair value of $33.25, the most followed story in the market sees upside that the current price has yet to reflect. The specialized nature of COPT's assets and entrenched relationships at critical defense nodes, coupled with significant barriers to new development, minimize competitive threats and enable pricing power, supporting margin expansion and the potential for above market NOI and FFO growth over the next several years. Read the complete narrative. Curious what sits behind that pricing power theme? The narrative focuses on steady revenue gains, resilient margins and a richer future earnings multiple. Want the full playbook behind that fair value call? Result: Fair Value of $33.25 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, you still need to weigh how reliant CDP is on U.S. defense budgets and concentrated government tenants, because contract delays or policy shifts can quickly change sentiment. Find out about the key risks to this COPT Defense Properties narrative. Build Your Own COPT Defense Properties Narrative If you see the story differently or prefer to test the assumptions yourself, you can build a custom view in just a few minutes with Do it your way. A great starting point for your COPT Defense Properties research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If CDP has sparked your interest, do not stop there. Use this momentum to scan for other compelling setups before everyone else starts paying attention. Tap into early-stage potential by checking out these 3523 penny stocks with strong financials that already back their stories with solid financials. Ride the next wave of automation by zeroing in on these 109 healthcare AI stocks that merge medical expertise with real AI use cases. Target dependable income streams by focusing on these 13 dividend stocks with yields > 3% that aim to reward shareholders with higher cash payouts. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.