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v3.25.3

Debt, Net | 9 Months Ended
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Sep. 30, 2025
Debt Disclosure [Abstract] |
Debt, Net | Debt, Net Our debt consisted of the following (dollars in thousands):
|  |  | Carrying Value (1) as of |  | September 30, 2025
|  |  | September 30, 2025 |  | December 31, 2024 |
|  |  |  | Stated Interest Rates |  | Scheduled Maturity
Mortgage and Other Secured Debt |  |  |  |  |  |  |  |  |
Fixed-rate mortgage debt |  |  | $ | 36,336 |  |  | $ | 37,130 |  |  | 3.82% |  | June 2026
Variable-rate secured debt |  |  | 32,120 |  |  | 32,471 |  |  | SOFR + 0.10% + 1.45% to 1.55% (2) |  | 2026 (3)
Total mortgage and other secured debt |  |  | 68,456 |  |  | 69,601 |  |  |  |  |
Revolving Credit Facility (4) |  |  | 124,000 |  |  | 75,000 |  |  | SOFR + 0.10% + 0.725% to 1.400% (5) |  | October 2026 (4)
Term Loan Facility (6) |  |  | 124,891 |  |  | 124,633 |  |  | SOFR + 0.10% + 0.850% to 1.700% (7) |  | January 2026 (6)
Unsecured Senior Notes |  |  |  |  |  |  |  |  |
2.25%, $400,000 aggregate principal |  |  | 399,532 |  |  | 398,699 |  |  | 2.25% (8) |  | March 2026
5.25%, $345,000 aggregate principal (9) |  |  | 338,990 |  |  | 337,588 |  |  | 5.25% (10) |  | September 2028
2.00%, $400,000 aggregate principal |  |  | 398,334 |  |  | 397,961 |  |  | 2.00% (11) |  | January 2029
2.75%, $600,000 aggregate principal |  |  | 593,186 |  |  | 592,330 |  |  | 2.75% (12) |  | April 2031
2.90%, $400,000 aggregate principal |  |  | 396,020 |  |  | 395,692 |  |  | 2.90% (13) |  | December 2033
Unsecured note payable |  |  | 109 |  |  | 251 |  |  | 0% (14) |  | May 2026
Total debt, net |  |  | $ | 2,443,518 |  |  | $ | 2,391,755 |  |  |  |  |
(1)The carrying values of our debt other than the Revolving Credit Facility reflect net deferred financing costs of $3.0 million as of September 30, 2025 and $4.0 million as of December 31, 2024. (2)Including the effect of an interest rate swap that hedges the risk of interest rate changes, the weighted average interest rate on our variable-rate secured debt as of September 30, 2025 was 5.14%; excluding the effect of this swap, the weighted average interest rate on this debt as of September 30, 2025 was 5.95%. (3)Most of this debt may be extended by a 12-month period at our option, provided that there is no default on the debt and we pay an extension fee of 0.10% of the debt balance. (4)The facility matures in October 2026, with the ability for us to extend such maturity by two six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.0625% of the total availability under the facility for each extension period. Refer to subsequent events disclosure pertaining to this facility in Note 18. (5)The weighted average interest rate on the Revolving Credit Facility was 5.37% as of September 30, 2025, excluding the effect of interest rate swaps that hedge the risk of interest rate changes (see Note 9 to our consolidated financial statements). (6)This facility matures in January 2026, with the ability for us to extend such maturity by two 12-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.125% of the outstanding loan balance for each extension period. Refer to subsequent events disclosure pertaining to this facility in Note 18. (7)The interest rate on this loan was 5.68% as of September 30, 2025, excluding the effect of interest rate swaps that hedge the risk of interest rate changes (see Note 9 to our consolidated financial statements). (8)The carrying value of these notes reflects unamortized discounts and commissions totaling $382,000 as of September 30, 2025 and $1.1 million as of December 31, 2024. The effective interest rate under the notes, including amortization of such costs, was 2.48%. (9)These notes have an exchange settlement feature under which the notes may, under certain circumstances, be exchangeable at the option of the holders. Upon exchange, the principal amount of notes is payable in cash, with the remainder of the exchange obligation, if any, as determined based on the exchange price per common share at the time of settlement, payable in cash, common shares or a combination thereof at our election. As of September 30, 2025, the exchange rate of the notes equaled 33.4962 of our common shares per $1,000 principal amount of notes (equivalent to an exchange price of approximately $29.85 per common share). (10)The carrying value of these notes reflects unamortized commissions totaling $5.3 million as of September 30, 2025 and $6.6 million as of December 31, 2024. The effective interest rate under the notes, including amortization of such costs, was 5.83%. (11)The carrying value of these notes reflects unamortized discounts and commissions totaling $1.2 million as of September 30, 2025 and $1.5 million as of December 31, 2024. The effective interest rate under the notes, including amortization of such costs, was 2.09%. (12)The carrying value of these notes reflects unamortized discounts and commissions totaling $5.9 million as of September 30, 2025 and $6.7 million as of December 31, 2024. The effective interest rate under the notes, including amortization of such costs, was 2.94%. (13)The carrying value of these notes reflects unamortized discounts and commissions totaling $3.3 million as of September 30, 2025 and $3.5 million as of December 31, 2024. The effective interest rate under the notes, including amortization of such costs, was 3.01%. (14)This note carries an interest rate that, upon assumption, was below market rates and it therefore was recorded at its fair value based on applicable effective interest rates. The carrying value of this note reflects an unamortized discount totaling $2,000 as of September 30, 2025 and $10,000 as of December 31, 2024. All debt is owed by the Operating Partnership. While COPT Defense is not directly obligated by any debt, it has guaranteed CDPLP’s Revolving Credit Facility, Term Loan Facility and Unsecured Senior Notes. All of our mortgage and other secured debt as of September 30, 2025 was for consolidated real estate joint ventures (see Note 6). The table below sets forth interest expense recognized on the 5.25% Exchangeable Senior Notes due 2028 (the “5.25% Notes”) (in thousands):
| For the Three Months Ended September 30, |  | For the Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Interest expense at stated interest rate | $ | 4,529 |  |  | $ | 4,528 |  |  | $ | 13,585 |  |  | $ | 13,584 |
Interest expense associated with amortization of debt discount and issuance costs | 416 |  |  | 393 |  |  | 1,231 |  |  | 1,162 |
Total | $ | 4,945 |  |  | $ | 4,921 |  |  | $ | 14,816 |  |  | $ | 14,746 |
Certain of our debt instruments require that we comply with a number of restrictive financial covenants. As of September 30, 2025, we were compliant with these financial covenants. Our debt matures on the following schedule (in thousands):
Year Ending December 31, |  | September 30, 2025 |
2025 (1) |  | $ | 466 |  |
2026 |  | 717,175 |  |
2027 |  | — |  |
2028 |  | 345,000 |  |
2029 |  | 400,000 |  |
Thereafter |  | 1,000,000 |  |
Total |  | $ | 2,462,641 |  | (2)
(1)Represents the three months ending December 31, 2025. (2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $19.1 million. We capitalized interest costs of $1.3 million in the three months ended September 30, 2025, $712,000 in the three months ended September 30, 2024, $3.3 million in the nine months ended September 30, 2025 and $1.9 million in the nine months ended September 30, 2024. The following table sets forth information pertaining to the fair value of our debt (in thousands):
| September 30, 2025 |  | December 31, 2024
| Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Fixed-rate debt |  |  |  |  |  |  |
Unsecured Senior Notes | $ | 2,126,062 |  |  | $ | 2,025,731 |  |  | $ | 2,122,270 |  |  | $ | 1,946,905 |
Other fixed-rate debt | 36,445 |  |  | 35,723 |  |  | 37,381 |  |  | 35,841 |
Variable-rate debt | 281,011 |  |  | 281,561 |  |  | 232,104 |  |  | 232,768 |
| $ | 2,443,518 |  |  | $ | 2,343,015 |  |  | $ | 2,391,755 |  |  | $ | 2,215,514 |

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