Manus Ebbecke

Manus Ebbecke from Evercore ISI inquired about COPT Defense Properties' expected tenant mix evolution over the next five years, specifically regarding government, tech defense, and traditional contractors.

Answer

Stephen E. Budorick, President and CEO, anticipated the tenant mix would remain roughly comparable to its current state, with a ratio of two parts defense contractor for every one part government, expecting growth across various markets.

Manus Ebbecke inquired about the demand drivers in COPT Defense's markets, specifically the split between existing and new tenants, and any observed migration of tech defense tenants from other U.S. regions. He also asked about the expected changes in the portfolio's tenant mix over the next five years.

Answer

EVP and CFO Anthony Mifsud indicated demand is roughly 50/50 from existing and new business, with some influx of groups from locations like Colorado and California. President and CEO Stephen E. Budorick found it challenging to predict exact changes in tenant mix but expected it to remain roughly comparable, with two parts defense contractor for every one part government, and growth across various markets.

Manus Ebbecke from Evercore ISI asked for an update on 1UPTOWN ATX leasing, specifically regarding the mix of spec suites versus full-floor users and the nature of tenant growth. He also sought clarity on the timeline for future development starts at Uptown, including residential or hotel projects, for 2026.

Answer

President and CEO Jerry Sweeney provided an overview of the Austin market and 1UPTOWN ATX's leasing pipeline, noting a mix of spec suite prospects (4,000-10,000 sq ft) and full-floor users (80,000-100,000 sq ft), including in-market relocations. Executive Vice President of Operations George Johnstone added details on dedicated spec suite floors. Jerry Sweeney then discussed plans for Block B, including multifamily, retail, and hospitality, targeting site plan approval by Q4 2025 and final approvals in late 2026, emphasizing Brandywine's land value as an equity contribution.

Manus Ebbecke inquired about the leasing prospects at Uptown ATX, specifically the mix of spec suites versus full-floor users, tenant types, and whether they represent market growth or relocations. He also asked about the timeline for 2026 development starts for additional residential or hotel projects at the site.

Answer

President and CEO Jerry Sweeney provided context on the Austin market and Uptown Domain submarket, highlighting the impact of the new train station and cost differences. EVP of Operations George Johnstone added details on spec suites, full-floor users, and NVIDIA's expansion rights. Jerry Sweeney then discussed planning for Block B (multifamily, retail, hospitality), aiming for site plan approval by Q4 2025 and exploring capital partners.