CDP

CDP is a specialty REIT whose business is overwhelmingly tied to U.S. defense and intelligence missions — management discloses the Defense/IT segment is 92.1% of property square footage and 90.3% of ARR, and that this segment has held at least 93% year-end occupancy for nine consecutive years. The 2025 MD&A documents continuing strength: total portfolio occupancy of 94.0% (95.5% Defense/IT), 557,000 sq ft of vacancy leasing equal to 47% of beginning-of-year vacant space, a 77.9% tenant retention rate, and cash rent uplifts of 2.7% on renewals. That is a moat narrative the numbers support — net income of $160M (+10.8% YoY) and diluted EPS of $1.34 (+8.9%) on roughly flat share count, with $310M of operating cash flow easily covering $137M of dividends paid.

The headline 'revenue $42.1M, YoY -44.3%' is a tagging artifact — that XBRL line captures only non-lease contract revenue, while the substance of a REIT sits in rental income. The implied 322.9% operating and 379.2% net margins make the same point: the ratio table here is not usable, which is why operating cash flow and occupancy are the better anchors. With $275M of cash (up sharply from the prior year) and management explicitly stating 'no significant debt maturing until 2028 other than the pre-funded 2026 bond maturity', refinancing risk is meaningfully de-risked even in a higher-rate world — a real differentiator versus office-heavy peers facing 2026–2027 maturity walls.