Brandywine Realty Trust Announces Second Quarter 2025 Results
Brandywine Realty Trust (NYSE:BDN) reported Q2 2025 financial results, posting a net loss of $(89.0) million, or $(0.51) per share, including $63.4 million in non-cash impairment charges related to Austin assets. FFO was $0.15 per diluted share.
Key operational highlights include 88.6% core portfolio occupancy and 91.1% leased rate. The company leased 234,000 square feet in its wholly-owned portfolio with an 82% tenant retention ratio and achieved a 2.1% rental rate increase on an accrual basis.
Management narrowed 2025 FFO guidance to $0.60-$0.66 per share, increased asset sales target to $72.7 million, and maintains strong liquidity with $122.6 million cash and no outstanding balance on its $600 million credit line.
Brandywine Realty Trust (NYSE:BDN) ha comunicato i risultati finanziari del secondo trimestre 2025, registrando una perdita netta di $(89,0) milioni, ovvero $(0,51) per azione, inclusi $63,4 milioni di svalutazioni non monetarie relative agli asset di Austin. L'FFO è stato di $0,15 per azione diluita.
I principali dati operativi evidenziano una occupazione del portafoglio core dell'88,6% e un tasso di locazione del 91,1%. La società ha locato 234.000 piedi quadrati nel suo portafoglio interamente di proprietà, con un tasso di fidelizzazione degli inquilini dell'82% e ha ottenuto un aumento del canone del 2,1% su base di competenza.
La direzione ha ristretto la previsione dell'FFO per il 2025 a $0,60-$0,66 per azione, ha aumentato l'obiettivo delle vendite di asset a $72,7 milioni e mantiene una solida liquidità con $122,6 milioni in contanti e nessun saldo aperto sulla linea di credito da $600 milioni.
Brandywine Realty Trust (NYSE:BDN) informó los resultados financieros del segundo trimestre de 2025, registrando una pérdida neta de $(89,0) millones, o $(0,51) por acción, incluyendo $63,4 millones en cargos por deterioro no monetarios relacionados con activos en Austin. El FFO fue de $0,15 por acción diluida.
Los aspectos operativos clave incluyen una ocupación del portafolio principal del 88,6% y una tasa de arrendamiento del 91,1%. La compañía arrendó 234,000 pies cuadrados en su portafolio totalmente propio con una tasa de retención de inquilinos del 82% y logró un aumento del 2,1% en las rentas en base devengada.
La gerencia ajustó la guía del FFO para 2025 a un rango de $0,60-$0,66 por acción, incrementó el objetivo de ventas de activos a $72,7 millones y mantiene una sólida liquidez con $122,6 millones en efectivo y sin saldo pendiente en su línea de crédito de $600 millones.
Brandywine Realty Trust (NYSE:BDN)는 2025년 2분기 재무 결과를 발표하며, 오스틴 자산과 관련된 비현금 손상차손 6,340만 달러를 포함하여 8,900만 달러(주당 0.51달러)의 순손실을 기록했습니다. FFO는 희석 주당 0.15달러였습니다.
주요 운영 성과로는 핵심 포트폴리오 점유율 88.6%와 임대율 91.1%가 포함됩니다. 회사는 전액 소유 포트폴리오에서 23만 4천 평방피트를 임대했으며, 임차인 유지율 82%를 기록했고, 발생 기준으로 임대료 2.1% 인상을 달성했습니다.
경영진은 2025년 FFO 가이던스를 주당 0.60~0.66달러로 좁혔고, 자산 매각 목표를 7,270만 달러로 상향 조정했으며, 1억 2,260만 달러 현금과 6억 달러 신용 한도에 대한 미결제 잔액 없이 강력한 유동성을 유지하고 있습니다.
Brandywine Realty Trust (NYSE:BDN) a publié ses résultats financiers du deuxième trimestre 2025, affichant une perte nette de 89,0 millions de dollars, soit 0,51 dollar par action, incluant 63,4 millions de dollars de charges de dépréciation non monétaires liées aux actifs d'Austin. Le FFO s'est élevé à 0,15 dollar par action diluée.
Les points clés opérationnels comprennent un taux d'occupation du portefeuille principal de 88,6% et un taux de location de 91,1%. La société a loué 234 000 pieds carrés dans son portefeuille entièrement détenu, avec un taux de rétention des locataires de 82% et a réalisé une augmentation des loyers de 2,1% sur une base de comptabilité d'exercice.
La direction a resserré ses prévisions de FFO pour 2025 à 0,60-0,66 dollar par action, augmenté l'objectif de ventes d'actifs à 72,7 millions de dollars et maintient une forte liquidité avec 122,6 millions de dollars en liquidités et aucun solde impayé sur sa ligne de crédit de 600 millions de dollars.
Brandywine Realty Trust (NYSE:BDN) meldete die Finanzergebnisse für das zweite Quartal 2025 und verzeichnete einen Nettoverlust von 89,0 Mio. USD bzw. 0,51 USD pro Aktie, einschließlich 63,4 Mio. USD nicht zahlungswirksamer Wertminderungsaufwendungen im Zusammenhang mit Vermögenswerten in Austin. Das FFO betrug 0,15 USD pro verwässerte Aktie.
Wesentliche operative Highlights sind eine Kernportfolio-Auslastung von 88,6% und eine Vermietungsquote von 91,1%. Das Unternehmen vermietete 234.000 Quadratfuß in seinem vollständig im Eigentum stehenden Portfolio mit einer Mieterbindungsrate von 82% und erzielte eine 2,1%ige Mietsteigerung auf Abgrenzungsbasis.
Das Management hat die FFO-Prognose für 2025 auf 0,60 bis 0,66 USD pro Aktie eingegrenzt, das Ziel für Asset-Verkäufe auf 72,7 Mio. USD erhöht und hält eine starke Liquidität mit 122,6 Mio. USD in bar und keinem ausstehenden Saldo auf der 600-Millionen-USD-Kreditlinie.
- Achieved 98% of speculative revenue target for 2025
- Low 5.1% average annual lease expiration rate through 2026
- Leasing activity increased 35% quarter-over-quarter
- Strong liquidity with $122.6M cash and undrawn $600M credit line
- Same-store NOI increased 6.3% on cash basis
- Successfully issued $150M bonds at 7.039% yield
- Net loss of $89.0 million in Q2 2025
- $63.4 million non-cash impairment charges for Austin assets
- Cash rental rates decreased 4.7%
- Removed land sales gains from 2025 business plan
- FFO guidance narrowed downward to $0.60-$0.66 per share
- Core portfolio occupancy declined to 88.6%
Insights
Brandywine posts mixed Q2 results with FFO of $0.15/share and narrows 2025 guidance amid property impairments and improving leasing momentum.
Brandywine Realty Trust delivered FFO of $0.15 per share in Q2, down from $0.22 in the year-ago period, while reporting a net loss of
The company's leasing activity demonstrated improvement with 234,000 square feet leased during the quarter—a
Brandywine has made significant progress on its capital recycling initiatives, increasing its asset disposition target from
The company's balance sheet positioning appears prudent with
Most notably, Brandywine narrowed its 2025 FFO guidance to
Narrows 2025 Guidance
PHILADELPHIA, July 23, 2025 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (NYSE: BDN) today reported its financial and operating results for the three and six-month periods ended June 30, 2025.
Management Comments
“We are pleased with progress on our 2025 business plan highlighted by achieving over
Second Quarter Highlights
Financial Results
- Net loss available to common shareholders:
$(89.0) million , or$(0.51) per diluted share. Our second quarter results include non-cash impairment charges totaling$63.4 million , or$0.37 per diluted share, related to portfolio assets located in Austin, Texas. - Funds from Operations (FFO):
$26.1 million , or$0.15 per diluted share.
Portfolio Results
- Core Portfolio:
88.6% occupied and91.1% leased. - New and Renewal Leases Signed: 234,000 square feet in our wholly-owned portfolio and 461,000 square feet, including our unconsolidated joint ventures.
- Rental Rate Mark-to-Market: Increased
2.1% on an accrual basis and decreased (4.7)% on a cash basis. - Same Store Net Operating Income: Increased
1.0% on an accrual basis and increased6.3% on a cash basis. - Tenant Retention Ratio:
82% .
Recent Transaction Activity
Disposition Activity
- On June 12, 2025 we completed the sale of a wholly-owned office property in Austin, Texas for
$17.6 million . The property totals 120,600 square feet and was36% occupied at the time of the sale. Net proceeds were used to reduce the outstanding balance on our unsecured line of credit. - As of June 30, 2025, the Company was under an agreement to sell a wholly-owned office property located in Austin, Texas for
$55.1 million . The Company has determined that consummation of the sale is probable and has classified the property as held for sale on the consolidated balance sheets.
Finance / Capital Markets Activity
- As previously announced, on June 17, 2025 we issued
$150.0 million of8.875% guaranteed notes due 2029 for gross proceeds of$159 million , which were used to repay the line of credit. The notes are due 2029 and were issued at a premium of106% representing a7.039% yield to maturity. - On July 23, 2025, we repaid our construction loan related to 155 King of Prussia Road in Radnor, Pennsylvania. The outstanding principal loan balance was
$43.6 million and was funded with cash on-hand. - As of June 30, 2025, we had no outstanding balance on our
$600.0 million unsecured line of credit. - As of June 30, 2025, we had
$122.6 million of cash and cash equivalents on-hand.
Results for the Three and Six Month Periods Ended June 30, 2025
Net loss attributable to common shareholders totaled
FFO available to common shareholders and units totaled
Net loss allocated to common shareholders totaled
Our FFO available to common shareholders and units for the first six months of 2025 totaled
Operating and Leasing Activity
In the second quarter of 2025, our same store Net Operating Income (NOI) excluding termination revenues and other income items increased
We leased approximately 234,000 square feet and commenced occupancy on 303,000 square feet during the second quarter of 2025. The second quarter occupancy activity includes 210,000 square feet of renewals, 66,000 square feet of new leases and 27,000 square feet of tenant expansions. We have an additional 280,000 square feet of executed new leasing scheduled to commence subsequent to June 30, 2025.
Our second quarter tenant retention ratio was
At June 30, 2025, our core portfolio of 60 properties comprises 11.3 million square feet, was
Dividend Distributions
On May 21, 2025, our Board of Trustees declared a quarterly dividend distribution of
2025 Earnings and FFO Guidance
Based on current plans and assumptions and subject to the risks and uncertainties more fully described in our Securities and Exchange Commission filings, we are adjusting our 2025 loss per share guidance from
| Guidance for 2025 | Range | ||
| Loss per diluted share allocated to common shareholders | to | ||
| Plus: real estate depreciation, amortization | 1.19 | 1.19 | |
| Plus: real estate impairment | 0.37 | 0.37 | |
| FFO per diluted share | to | ||
Our 2025 FFO key operating and capital market assumptions include:
- Year-end Core Occupancy Range: 88 -
89% ; - Year-end Core Leased Range: 89 -
90% ; - Rental Rate Mark-to-Market (accrual): 3.8 -
4.2% ; - Rental Rate Mark-to-Market (cash): (2.0) - (1.5)%;
- Same Store (accrual) NOI Range: 0 -
1% ; - Same Store (cash) NOI Range: 2 -
3% ; - Speculative Revenue Target:
$27.0 -$28.0 million ,$27.0 million achieved; - Tenant Retention Rate Range: 62 -
63% ; - Property Acquisition Activity: None;
- Property Sales Activity (excluding land):
$72.7 million ;$17.6 million complete and$55.1 million under agreement; - Development Starts: One Start; one development start commenced;
- Financing Activity: We repaid our
$70 million unsecured term loan on the scheduled February 2025 maturity date and repaid our$50.0 million construction loan (scheduled to mature August 2026) and received gross proceeds totaling$159.0 million from an unsecured bond reissuance at a7.039% yield; - Share Buyback Activity: None; and
- Annual earnings and FFO per diluted share based on 179.0 million fully diluted weighted average common shares.
Except as outlined in our 2025 business plan included in the Supplemental Information Package, our estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may fluctuate based on several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. Management is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities or depreciable real estate. For a complete definition of FFO and statements of the reasons why management believes FFO provides useful information to investors, see page 41 in our second quarter supplement information package. There can be no assurance that our actual results will not differ materially from the estimates set forth below.
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.
Conference Call and Audio Webcast
We will host our second quarter conference call on Thursday July 24, 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. A live webcast of the conference call will also be available on the Investor Relations page of our website at www.brandywinerealty.com.
Looking Ahead – Third Quarter 2025 Conference Call
We expect to release our third quarter 2025 earnings on Wednesday, October 22, 2025 after the market close and will host our third quarter 2025 conference call on Thursday, October 23, 2025 at 9:00 a.m. Eastern Time. We expect to issue a press release in advance of these events to reconfirm the dates and times and provide all related information.
Supplemental Information
We produce a supplemental information package that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures, same-store information and other useful information for investors. The supplemental information is available via our website, www.brandywinerealty.com, through the “Investor Relations” section.
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 Business Plan and expectations for timing and terms of developments, sales and capital activities, 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.
Non-GAAP Supplemental Financial Measures
We compute our financial results in accordance with generally accepted accounting principles (GAAP). Although FFO and NOI are non-GAAP financial measures, we believe that FFO and NOI calculations are helpful to shareholders and potential investors and are widely recognized measures of real estate investment trust performance. At the end of this press release, we have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measure.
Funds from Operations (FFO)
We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than us. NAREIT defines FFO as net income (loss) before non-controlling interests and excluding gains (losses) on sales of depreciable operating property, impairment losses on depreciable consolidated real estate, impairment losses on investments in unconsolidated real estate ventures and extraordinary items (computed in accordance with GAAP); plus real estate related depreciation and amortization (excluding amortization of deferred financing costs), and after similar adjustments for unconsolidated joint ventures. Net income, the GAAP measure that we believe to be most directly comparable to FFO, includes depreciation and amortization expenses, gains or losses on property sales, extraordinary items and non-controlling interests. To facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (determined in accordance with GAAP) as presented in the financial statements included elsewhere in this release. FFO does not represent cash flow from operating activities (determined in accordance with GAAP) and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions to shareholders. We generally consider FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.
Net Operating Income (NOI)
NOI (accrual basis) is a non-GAAP financial measure equal to net income available to common shareholders, the most directly comparable GAAP financial measure, plus corporate general and administrative expense, depreciation and amortization, interest expense, non-controlling interest in the Operating Partnership and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, gains on early extinguishment of debt, income from discontinued operations, income from unconsolidated joint ventures and non-controlling interest in property partnerships. In some cases we also present NOI on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and deferred market intangible amortization. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions. We believe NOI is a useful measure for evaluating the operating performance of our properties, as it excludes certain components from net income available to common shareholders in order to provide results that are more closely related to a property's results of operations. We use NOI internally to evaluate the performance of our operating segments and to make decisions about resource allocations. We concluded that NOI provides useful information to investors regarding our financial condition and results of operations, as it reflects only the income and expense items incurred at the property level, as well as the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unlevered basis.
Same Store Properties
In our analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by us throughout each period presented. We refer to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us through the end of the latest period presented as Same Store Properties. Same Store Properties therefore exclude properties placed in-service, acquired, repositioned, held for sale or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired for that property to be included in Same Store Properties.
Core Portfolio
Our core portfolio is comprised of our wholly-owned properties, excluding any properties currently in development, re-development, recently completed not yet stabilized, re-entitlement or held for sale.
Speculative Revenue
Speculative Revenue represents the amount of rental revenue the company projects to be recorded during the current calendar year from new and renewal leasing activity in its core portfolio that has yet to be executed as of the beginning of the year. This revenue is primarily attributable to the absorption of core portfolio square footage that was either vacant at the beginning of the year or the renewal of existing tenants due to expire during the current year.
| BRANDYWINE REALTY TRUST CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except share and per share data) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Real estate investments: | ||||||||
| Operating properties | $ | 3,260,497 | $ | 3,374,780 | ||||
| Accumulated depreciation | (1,206,366 | ) | (1,171,803 | ) | ||||
| Right of use asset - operating leases, net | 18,108 | 18,412 | ||||||
| Operating real estate investments, net | 2,072,239 | 2,221,389 | ||||||
| Construction-in-progress | 90,950 | 94,628 | ||||||
| Land held for development | 74,541 | 81,318 | ||||||
| Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 | ||||||
| Total real estate investments, net | 2,265,492 | 2,425,097 | ||||||
| Cash and cash equivalents | 122,645 | 90,229 | ||||||
| Restricted cash and escrow | 1,114 | 5,948 | ||||||
| Accounts receivable | 16,262 | 12,703 | ||||||
| Assets held for sale, net | 53,886 | — | ||||||
| Accrued rent receivable, net of allowance of | 183,117 | 184,312 | ||||||
| Investment in unconsolidated real estate ventures | 555,541 | 570,455 | ||||||
| Deferred costs, net | 77,397 | 84,317 | ||||||
| Intangible assets, net | 4,222 | 5,505 | ||||||
| Other assets | 114,663 | 113,647 | ||||||
| Total assets | $ | 3,394,339 | $ | 3,492,213 | ||||
| LIABILITIES AND BENEFICIARIES' EQUITY | ||||||||
| Secured debt, net | $ | 286,352 | $ | 275,338 | ||||
| Unsecured term loan, net | 249,186 | 318,949 | ||||||
| Unsecured senior notes, net | 1,776,851 | 1,618,527 | ||||||
| Accounts payable and accrued expenses | 108,653 | 129,717 | ||||||
| Distributions payable | 26,457 | 26,256 | ||||||
| Deferred income, gains and rent | 17,105 | 35,414 | ||||||
| Intangible liabilities, net | 6,701 | 7,292 | ||||||
| Liabilities related to assets held for sale | 182 | — | ||||||
| Lease liability - operating leases | 23,634 | 23,546 | ||||||
| Other liabilities | 13,976 | 12,587 | ||||||
| Total liabilities | $ | 2,509,097 | $ | 2,447,626 | ||||
| Brandywine Realty Trust's Equity: | ||||||||
| Common Shares of Brandywine Realty Trust's beneficial interest, | 1,733 | 1,724 | ||||||
| Additional paid-in-capital | 3,195,813 | 3,182,621 | ||||||
| Deferred compensation payable in common shares | 23,069 | 20,456 | ||||||
| Common shares in grantor trust, 1,586,138 and 1,221,333 issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | (23,069 | ) | (20,456 | ) | ||||
| Cumulative earnings | 667,855 | 783,499 | ||||||
| Accumulated other comprehensive income (loss) | (1,118 | ) | 2,521 | |||||
| Cumulative distributions | (2,984,508 | ) | (2,931,730 | ) | ||||
| Total Brandywine Realty Trust's equity | 879,775 | 1,038,635 | ||||||
| Noncontrolling interests | 5,467 | 5,952 | ||||||
| Total beneficiaries' equity | $ | 885,242 | $ | 1,044,587 | ||||
| Total liabilities and beneficiaries' equity | $ | 3,394,339 | $ | 3,492,213 | ||||
| BRANDYWINE REALTY TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenue | ||||||||||||||||
| Rents | $ | 114,196 | $ | 118,009 | $ | 228,624 | $ | 237,017 | ||||||||
| Third party management fees, labor reimbursement and leasing | 4,873 | 5,698 | 10,702 | 11,592 | ||||||||||||
| Other | 1,502 | 1,639 | 2,761 | 3,221 | ||||||||||||
| Total revenue | 120,571 | 125,346 | 242,087 | 251,830 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Property operating expenses | 31,365 | 31,353 | 64,891 | 63,632 | ||||||||||||
| Real estate taxes | 11,507 | 12,535 | 22,939 | 25,127 | ||||||||||||
| Third party management expenses | 2,484 | 2,426 | 5,117 | 4,969 | ||||||||||||
| Depreciation and amortization | 43,762 | 44,187 | 88,115 | 89,229 | ||||||||||||
| General and administrative expenses | 9,325 | 8,941 | 26,795 | 20,045 | ||||||||||||
| Provision for impairment | 63,369 | 6,427 | 63,369 | 6,427 | ||||||||||||
| Total operating expenses | 161,812 | 105,869 | 271,226 | 209,429 | ||||||||||||
| Gain (loss) on sale of real estate | ||||||||||||||||
| Net gain (loss) on disposition of real estate | (86 | ) | — | 2,973 | — | |||||||||||
| Total gain (loss) on sale of real estate | (86 | ) | — | 2,973 | — | |||||||||||
| Operating income (loss) | (41,327 | ) | 19,477 | (26,166 | ) | 42,401 | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest and investment income | 850 | 1,512 | 2,036 | 1,933 | ||||||||||||
| Interest expense | (32,345 | ) | (29,494 | ) | (64,190 | ) | (54,543 | ) | ||||||||
| Interest expense - amortization of deferred financing costs | (1,197 | ) | (1,415 | ) | (2,427 | ) | (2,506 | ) | ||||||||
| Equity in loss of unconsolidated real estate ventures | (14,832 | ) | (14,507 | ) | (25,343 | ) | (28,095 | ) | ||||||||
| Net gain on real estate venture transactions | — | 53,762 | 183 | 53,733 | ||||||||||||
| Gain on early extinguishment of debt | — | 941 | — | 941 | ||||||||||||
| Net income (loss) before income taxes | (88,851 | ) | 30,276 | (115,907 | ) | 13,864 | ||||||||||
| Income tax provision | (85 | ) | (9 | ) | (85 | ) | (11 | ) | ||||||||
| Net income (loss) | (88,936 | ) | 30,267 | (115,992 | ) | 13,853 | ||||||||||
| Net (income) loss attributable to noncontrolling interests | 267 | (94 | ) | 348 | (48 | ) | ||||||||||
| Net income (loss) attributable to Brandywine Realty Trust | (88,669 | ) | 30,173 | (115,644 | ) | 13,805 | ||||||||||
| Nonforfeitable dividends allocated to unvested restricted shareholders | (322 | ) | (277 | ) | (751 | ) | (613 | ) | ||||||||
| Net income (loss) attributable to Common Shareholders of Brandywine Realty Trust | $ | (88,991 | ) | $ | 29,896 | $ | (116,395 | ) | $ | 13,192 | ||||||
| PER SHARE DATA | ||||||||||||||||
| Basic income (loss) per Common Share | $ | (0.51 | ) | $ | 0.17 | $ | (0.67 | ) | $ | 0.08 | ||||||
| Basic weighted average shares outstanding | 173,532,583 | 172,563,136 | 173,225,737 | 172,385,087 | ||||||||||||
| Diluted income (loss) per Common Share | $ | (0.51 | ) | $ | 0.17 | $ | (0.67 | ) | $ | 0.08 | ||||||
| Diluted weighted average shares outstanding | 173,532,583 | 174,695,651 | 173,225,737 | 174,342,151 | ||||||||||||
| BRANDYWINE REALTY TRUST FUNDS FROM OPERATIONS (unaudited, in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income (loss) attributable to common shareholders | $ | (88,991 | ) | $ | 29,896 | $ | (116,395 | ) | $ | 13,192 | ||||||
| Add (deduct): | ||||||||||||||||
| Net income (loss) attributable to noncontrolling interests - LP units | (267 | ) | 91 | (348 | ) | 42 | ||||||||||
| Nonforfeitable dividends allocated to unvested restricted shareholders | 322 | 277 | 751 | 613 | ||||||||||||
| Net loss on real estate venture transactions | (304 | ) | (53,762 | ) | (198 | ) | (53,733 | ) | ||||||||
| Net (gain) loss on disposition of real estate | 86 | — | (2,973 | ) | — | |||||||||||
| Provision for impairment | 63,369 | 6,427 | 63,369 | 6,427 | ||||||||||||
| Depreciation and amortization: | ||||||||||||||||
| Real property | 38,363 | 38,368 | 77,092 | 77,485 | ||||||||||||
| Leasing costs including acquired intangibles | 4,588 | 4,904 | 9,403 | 9,923 | ||||||||||||
| Company’s share of unconsolidated real estate ventures | 9,345 | 12,294 | 20,781 | 26,146 | ||||||||||||
| Partners’ share of consolidated real estate ventures | (4 | ) | — | (7 | ) | — | ||||||||||
| Funds from operations | $ | 26,507 | $ | 38,495 | $ | 51,475 | $ | 80,095 | ||||||||
| Funds from operations allocable to unvested restricted shareholders | (395 | ) | (467 | ) | (700 | ) | (886 | ) | ||||||||
| Funds from operations available to common share and unit holders (FFO) | $ | 26,112 | $ | 38,028 | $ | 50,775 | $ | 79,209 | ||||||||
| FFO per share - fully diluted | $ | 0.15 | $ | 0.22 | $ | 0.28 | $ | 0.45 | ||||||||
| Weighted-average shares/units outstanding — fully diluted | 178,569,600 | 175,211,246 | 178,514,577 | 174,857,745 | ||||||||||||
| Distributions paid per common share | $ | 0.15 | $ | 0.15 | $ | 0.30 | $ | 0.30 | ||||||||
| FFO payout ratio (distributions paid per common share/FFO per diluted share) | 100 | % | 68 | % | 107 | % | 67 | % | ||||||||
| BRANDYWINE REALTY TRUST SAME STORE OPERATIONS – 2nd QUARTER (unaudited and in thousands) |
Of the 63 properties owned by the Company as of June 30, 2025, a total of 59 properties ("Same Store Properties") containing an aggregate of 11.1 million net rentable square feet were owned for the entire three months ended June 30, 2025 and 2024. As of June 30, 2025, two properties were recently completed and two properties were in development/redevelopment. The Same Store Properties were
| Three Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | ||||||||
| Rents | $ | 104,249 | $ | 101,516 | ||||
| Other | 251 | 197 | ||||||
| Total revenue | 104,500 | 101,713 | ||||||
| Operating expenses | ||||||||
| Property operating expenses | 27,706 | 26,453 | ||||||
| Real estate taxes | 10,276 | 10,420 | ||||||
| Net operating income | $ | 66,518 | $ | 64,840 | ||||
| Net operating income - percentage change over prior year | 2.6 | % | ||||||
| Net operating income, excluding other items (1) | $ | 66,061 | $ | 65,382 | ||||
| Net operating income, excluding other items - percentage change over prior year | 1.0 | % | ||||||
| Net operating income | $ | 66,518 | $ | 64,840 | ||||
| Straight line rents & other | 1,067 | (2,215 | ) | |||||
| Above/below market rent amortization | (164 | ) | (180 | ) | ||||
| Amortization of tenant inducements | 223 | 208 | ||||||
| Non-cash ground rent expense | 236 | 240 | ||||||
| Cash - Net operating income | $ | 67,880 | $ | 62,893 | ||||
| Cash - Net operating income - percentage change over prior year | 7.9 | % | ||||||
| Cash - Net operating income, excluding other items (1) | $ | 67,223 | $ | 63,242 | ||||
| Cash - Net operating income, excluding other items - percentage change over prior year | 6.3 | % | ||||||
| Three Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Net income (loss): | $ | (88,936 | ) | $ | 30,267 | |||
| Add/(deduct): | ||||||||
| Interest and investment income | (850 | ) | (1,512 | ) | ||||
| Interest expense | 32,345 | 29,494 | ||||||
| Interest expense - amortization of deferred financing costs | 1,197 | 1,415 | ||||||
| Equity in loss of unconsolidated real estate ventures | 14,832 | 14,507 | ||||||
| Net gain on real estate venture transactions | — | (53,762 | ) | |||||
| Net loss on disposition of real estate | 86 | — | ||||||
| Gain on early extinguishment of debt | — | (941 | ) | |||||
| Depreciation and amortization | 43,762 | 44,187 | ||||||
| General & administrative expenses | 9,325 | 8,941 | ||||||
| Income tax provision | 85 | 9 | ||||||
| Provision for impairment | 63,369 | 6,427 | ||||||
| Consolidated net operating income | 75,215 | 79,032 | ||||||
| Less: Net operating income of non-same store properties and elimination of non-property specific operations | (8,697 | ) | (14,192 | ) | ||||
| Same store net operating income | $ | 66,518 | $ | 64,840 | ||||
| (1) - Other items represent termination fees and bad debt expense and other income. | ||||||||
| BRANDYWINE REALTY TRUST SAME STORE OPERATIONS – SIX MONTHS (unaudited and in thousands) |
Of the 63 properties owned by the Company as of June 30, 2025, a total of 59 properties ("Same Store Properties") containing an aggregate of 11.1 million net rentable square feet were owned for the entire six months ended June 30, 2025 and 2024. As of June 30, 2025, two properties were recently completed, and two properties were in development/redevelopment. The Same Store Properties were
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Revenue | ||||||||
| Rents | $ | 208,523 | $ | 204,857 | ||||
| Other | 488 | 419 | ||||||
| Total revenue | 209,011 | 205,276 | ||||||
| Operating expenses | ||||||||
| Property operating expenses | 56,274 | 53,247 | ||||||
| Real estate taxes | 20,457 | 20,888 | ||||||
| Net operating income | $ | 132,280 | $ | 131,141 | ||||
| Net operating income - percentage change over prior year | 0.9 | % | ||||||
| Net operating income, excluding other items (1) | $ | 131,211 | $ | 131,773 | ||||
| Net operating income, excluding other items - percentage change over prior year | (0.4 | )% | ||||||
| Net operating income | $ | 132,280 | $ | 131,141 | ||||
| Straight line rents & other | 803 | (5,378 | ) | |||||
| Above/below market rent amortization | (328 | ) | (372 | ) | ||||
| Amortization of tenant inducements | 444 | 346 | ||||||
| Non-cash ground rent expense | 475 | 483 | ||||||
| Cash - Net operating income | $ | 133,674 | $ | 126,220 | ||||
| Cash - Net operating income - percentage change over prior year | 5.9 | % | ||||||
| Cash - Net operating income, excluding other items (1) | $ | 132,198 | $ | 126,259 | ||||
| Cash - Net operating income, excluding other items - percentage change over prior year | 4.7 | % | ||||||
| Six Months Ended June 30, | ||||||||
| 2025 | 2024 | |||||||
| Net income (loss): | $ | (115,992 | ) | $ | 13,853 | |||
| Add/(deduct): | ||||||||
| Interest income | (2,036 | ) | (1,933 | ) | ||||
| Interest expense | 64,190 | 54,543 | ||||||
| Interest expense - amortization of deferred financing costs | 2,427 | 2,506 | ||||||
| Equity in loss of unconsolidated real estate ventures | 25,343 | 28,095 | ||||||
| Net gain on real estate venture transactions | (183 | ) | (53,733 | ) | ||||
| Gain on early extinguishment of debt | — | (941 | ) | |||||
| Depreciation and amortization | 88,115 | 89,229 | ||||||
| General & administrative expenses | 26,795 | 20,045 | ||||||
| Income tax provision | 85 | 11 | ||||||
| Provision for impairment | 63,369 | 6,427 | ||||||
| Consolidated net operating income | 149,140 | 158,102 | ||||||
| Less: Net operating income of non-same store properties and elimination of non-property specific operations | (16,860 | ) | (26,961 | ) | ||||
| Same store net operating income | $ | 132,280 | $ | 131,141 | ||||
| (1) - Other items represent termination fees and bad debt expense and other income. | ||||||||
| Company / Investor Contact: Tom Wirth EVP & CFO 610-832-7434 tom.wirth@bdnreit.com |
FAQ
What were Brandywine Realty Trust's (BDN) Q2 2025 earnings results?
What is BDN's revised FFO guidance for 2025?
What is Brandywine's current occupancy and leasing status in Q2 2025?
How much liquidity does BDN have available as of Q2 2025?
What is BDN's new asset sales target for 2025?
