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COPT Defense Properties (CDP)

Company Dividend Discount ModelIndustry: REIT - OfficeSector: Real Estate

Valuation Snapshot

Stable Growth$12.43 - $19.11$15.54
Multi-Stage$17.42 - $19.07$18.23
Blended Fair Value$16.89
Current Price$29.06
Upside-41.90%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-90.08%-67.73%0.001.121.091.091.091.081.010.960.920.91
YoY Growth---100.00%2.86%0.10%0.13%0.58%7.32%4.68%4.84%0.48%7.59%
Dividend Yield--0.00%4.73%4.60%3.82%4.14%4.89%3.69%3.76%2.78%3.49%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)149.94
(-) Cash Dividends Paid (M)67.70
(=) Cash Retained (M)82.24
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)29.9918.7411.25
Cash Retained (M)82.2482.2482.24
(-) Cash Required (M)-29.99-18.74-11.25
(=) Excess Retained (M)52.2563.4970.99
(/) Shares Outstanding (M)113.28113.28113.28
(=) Excess Retained per Share0.460.560.63
LTM Dividend per Share0.600.600.60
(+) Excess Retained per Share0.460.560.63
(=) Adjusted Dividend1.061.161.22
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.53%1.53%2.53%
Fair Value$12.43$15.54$19.11
Upside / Downside-57.24%-46.53%-34.22%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)149.94152.23154.56156.93159.33161.77166.62
Payout Ratio45.15%54.12%63.09%72.06%81.03%90.00%92.50%
Projected Dividends (M)67.7082.3997.51113.08129.10145.59154.12

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate0.53%1.53%2.53%
Year 1 PV (M)74.7775.5276.26
Year 2 PV (M)80.3281.9383.55
Year 3 PV (M)84.5487.0889.68
Year 4 PV (M)87.5991.1394.78
Year 5 PV (M)89.6594.2098.93
PV of Terminal Value (M)1,556.321,635.291,717.42
Equity Value (M)1,973.202,065.152,160.62
Shares Outstanding (M)113.28113.28113.28
Fair Value$17.42$18.23$19.07
Upside / Downside-40.06%-37.26%-34.36%

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