Brandywine Realty Trust Announces Quarterly Common Dividend, Planned Financing Activity and Confirms Third Quarter 2025 Earnings Release and Conference Call

Rhea-AI Summary

Brandywine Realty Trust (NYSE:BDN) announced significant changes to its financial structure and dividend policy. The company declared a quarterly dividend of $0.08 per share, representing a substantial reduction from the previous $0.15, resulting in a new annual rate of $0.32 (down from $0.60).

The REIT plans to prepay a $245 million secured loan in October using cash, its $600 million credit line, and other liquidity sources. This prepayment will fully unencumber BDN's operating portfolio but result in a Q4 earnings charge of $12-14 million ($0.07-0.09 per share). The move is expected to increase unencumbered annual cash flow by $45 million, while the dividend reduction should retain approximately $50 million in cash for investment activities.

Positive

• Prepayment of secured loan will increase unencumbered annual cash flow by $45 million
• Dividend reduction will retain $50 million cash for investments and liquidity improvement
• Portfolio will become fully unencumbered after loan prepayment
• Operating business plan objectives remain on target

Negative

• Significant dividend reduction from $0.60 to $0.32 annual rate per share
• Q4 earnings charge of $12-14 million from loan prepayment
• Early prepayment of $245 million secured loan indicates potential liquidity management concerns

PHILADELPHIA, Sept. 26, 2025 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (NYSE:BDN) announced today that its Board of Trustees has declared a quarterly cash dividend of $0.08 per common share and OP Unit payable on October 23, 2025 to holders of record on October 9, 2025. The quarterly dividend is equivalent to an annual rate of $0.32 per common share and represents a reduction from the previous quarter’s annual rate of $0.60 per common share.

During October, we intend to prepay a secured loan using a combination of cash on hand, our $600 million unsecured line-of-credit and proceeds from additional sources of liquidity, as appropriate. The secured loan totals $245 million and has a scheduled maturity date in February 2028 and is currently secured by 7 properties totaling 1.4 million square feet located in several of our segments. If the secured loan is prepaid, Brandywine will have a wholly owned operating portfolio that is fully unencumbered. We estimate the prepayment will result in a fourth quarter earnings charge totaling $12-$14 million, or $0.07-$0.09 per common share which is currently not included in our 2025 earnings guidance.

Management Comments

“The repayment of our remaining secured loan will fully unencumber our consolidated operating portfolio,” stated Jerry Sweeney, President and CEO of Brandywine Realty Trust. “This prepayment, based on current assumptions, including in-place leases at the secured loan properties, is expected to increase our unencumbered annual cash flow by approximately $45 million while also providing additional asset-level leasing flexibility. In addition, while our operating business plan objectives remain on target we also announced an adjustment to our quarterly dividend from $0.15 to $0.08. This dividend reduction is expected to enable us to retain approximately $50 million of cash to be used for accretive investment activities, including investing in our operating portfolio, recapitalizing our existing development projects, and further improving overall liquidity.  This revised dividend represents a level that we expect to maintain for the foreseeable future.” 

Conference Call and Audio Webcast

We expect to release our third quarter earnings after market close on Wednesday October 22, 2025, and we expect to host our third quarter conference call on Thursday October 23, 2025 at 9:00 a.m. Eastern Time. To access the conference call by phone, please visit this link here, and you will be provided with dial-in details. The link will be available within 60 days of the conference call. A live webcast of the conference call will also be available on the Investor Relations page of our website at www.brandywinerealty.com.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in Philadelphia, PA and Austin, TX. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 122 properties and 19.0 million square feet as of June 30, 2025. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together. For more information, please visit www.brandywinerealty.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “will,” “strategy,” “expects,” “seeks,” “believes,” “potential,” or other similar words. Because such statements involve known and unknown risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These forward-looking statements, including our 2025 Guidance and our 2025 operating strategy and expectations for timing and terms of developments, sales and capital activities, our realization of the benefits expected from the prepayment of our consolidated secured debt, including on account of expected additional unencumbered cash flow, our ability to prepay our secured debt within the time frame expected, our realization of the benefits expected from the reduction of our quarterly dividend and our intended use of the cash retained on account thereof, are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and not within our control. Such risks, uncertainties and contingencies include, among others: reduced demand for office space and pricing pressures, including from competitors, changes to tenant work patterns that could limit our ability to lease space or set rents at expected levels or that could lead to declines in rent; uncertainty and volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital or that delay receipt of future debt financings and refinancings; the effect of inflation and interest rate fluctuations, including on the costs of our planned debt financings and refinancings; the potential loss or bankruptcy of tenants or the inability of tenants to meet their rent and other lease obligations; risks of acquisitions and dispositions, including unexpected liabilities and integration costs; delays in completing, and cost overruns incurred in connection with, our developments and redevelopments; disagreements with joint venture partners; unanticipated operating and capital costs; uninsured casualty losses and our ability to obtain adequate insurance, including coverage for terrorist acts; additional asset impairments; our dependence upon certain geographic markets; changes in governmental regulations, tax laws and rates and similar matters; unexpected costs of REIT qualification compliance; costs and disruptions as the result of a cybersecurity incident or other technology disruption; reliance on key personnel; and failure to maintain an effective system of internal control, including internal control over financial reporting. The declaration and payment of future dividends (both timing and amount) is subject to the determination of our Board of Trustees, in its sole discretion, after considering various factors, including our financial condition, historical and forecast operating results, and available cash flow, as well as any applicable laws and contractual covenants and any other relevant factors. Our Board’s practice regarding declaration of dividends may be modified at any time and from time to time. Additional information on factors which could impact us and the forward-looking statements contained herein are included in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2024. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events except as required by law.

Company / Investor Contact:

Tom Wirth
EVP & CFO
610-832-7434
tom.wirth@bdnreit.com

FAQ

What is Brandywine Realty Trust's (BDN) new dividend amount and when is it payable?

BDN's new quarterly dividend is $0.08 per share, payable on October 23, 2025, to holders of record on October 9, 2025. This represents an annual rate of $0.32 per share.

How much did Brandywine Realty Trust (BDN) reduce its dividend in 2025?

BDN reduced its quarterly dividend from $0.15 to $0.08, representing a 47% decrease from the previous annual rate of $0.60 to the new rate of $0.32 per share.

What is the impact of BDN's secured loan prepayment on earnings?

The prepayment will result in a Q4 earnings charge of $12-14 million ($0.07-0.09 per share), which is not included in 2025 earnings guidance. However, it will increase unencumbered annual cash flow by $45 million.

How many properties does Brandywine Realty Trust (BDN) own as of 2025?

As of June 30, 2025, BDN owns 122 properties comprising 19.0 million square feet, primarily focused in Philadelphia, PA and Austin, TX.

When will Brandywine Realty Trust (BDN) release Q3 2025 earnings?

BDN will release Q3 earnings after market close on Wednesday, October 22, 2025, with a conference call scheduled for Thursday, October 23, 2025, at 9:00 a.m. ET.