COPT Protection Properties (NYSE:CDP) is without doubt one of the worst-performing knowledge middle shares in 2025. Its inventory’s efficiency has been lacklustre all through this 12 months and over the previous 12 months (-4%).
The corporate develops and operates safe knowledge facilities tailor-made for nationwide safety, intelligence, and cloud computing workloads. Its portfolio is closely concentrated in mission-critical areas close to the Pentagon and intelligence hubs. This tenant base offers it with secure, long-term leases with low emptiness danger, which in flip end in predictable money flows. Nonetheless, general progress can be restricted as a result of nature of high-security amenities and relies upon considerably on the federal government funds.
A secure money stream profile has enabled COPT Protection Properties (NYSE:CDP) to extend its dividend by practically 11% over the past three years. The inventory at the moment presents a dividend yield of over 4%.
On September 11, on the BofA Securities 2025 International Actual Property Convention, the corporate highlighted that, whereas it had initially set a objective of 400,000 sq. ft of emptiness leasing for 2025, it had achieved over 350,000 sq. ft within the first half. With that, they’ve raised their steering modestly and are very assured in delivering on the upgraded steering.
Following this presentation, JPMorgan analyst Anthony Paolone stated that the present consensus estimates seem conservative, and thus modestly raised his estimates. Consequently, on September 17, he raised his worth goal on the inventory to $33 from $30. Nonetheless, he maintained a Impartial ranking.
Whereas we acknowledge the potential of CDP as an funding, we imagine sure AI shares supply better upside potential and carry much less draw back danger. If you happen to’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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Disclosure: None. This text is initially revealed at Insider Monkey.
