Brandywine Realty Trust Announces Fourth Quarter, Full Year 2024 Results and Initiates 2025 Guidance
Brandywine Realty Trust (NYSE:BDN) reported its Q4 and full-year 2024 results, posting a net loss of $(43.3) million or $(0.25) per share in Q4, including a $(23.8) million non-cash impairment charge. FFO was $29.9 million or $0.17 per diluted share.
The company completed over $300 million in dispositions, exceeding their initial $90 million target. Key operational metrics include: 87.8% core portfolio occupancy, 89.9% leased rate, and 486,000 square feet of new and renewal leases signed in Q4. The company achieved a 76% tenant retention ratio and 5.9% rental rate growth on an accrual basis.
For 2025, BDN initiated guidance with FFO of $0.60-$0.72 per diluted share, projecting year-end core occupancy of 88-89% and core leased range of 89-90%. The company maintains strong liquidity with no borrowings on its $600 million credit line and $90 million cash on hand.
Brandywine Realty Trust (NYSE:BDN) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, registrando una perdita netta di $(43.3) milioni o $(0.25) per azione nel quarto trimestre, inclusa una svalutazione non monetaria di $(23.8) milioni. L'FFO è stato di $29.9 milioni o $0.17 per azione diluita.
L'azienda ha completato oltre $300 milioni in cessioni, superando il target iniziale di $90 milioni. Le metriche operative chiave includono: 87.8% di occupazione del portafoglio principale, 89.9% di tasso di locazione e 486.000 piedi quadrati di nuovi contratti e rinnovi firmati nel quarto trimestre. L'azienda ha raggiunto un tasso di retention degli inquilini del 76% e una crescita del tasso di affitto del 5.9% su base accrual.
Per il 2025, BDN ha avviato le linee guida con un FFO di $0.60-$0.72 per azione diluita, proiettando un'occupazione principale di fine anno dell'88-89% e un intervallo di affitti principali dell'89-90%. L'azienda mantiene una solida liquidità senza indebitamenti sulla sua linea di credito da $600 milioni e con $90 milioni in contanti.
Brandywine Realty Trust (NYSE:BDN) informó sus resultados del cuarto trimestre y del año 2024, registrando una pérdida neta de $(43.3) millones o $(0.25) por acción en el cuarto trimestre, incluyendo un cargo por deterioro no monetario de $(23.8) millones. El FFO fue de $29.9 millones o $0.17 por acción diluida.
La empresa completó más de $300 millones en desinversiones, superando su objetivo inicial de $90 millones. Las métricas operativas clave incluyen: 87.8% de ocupación del portafolio principal, 89.9% de tasa de arrendamiento, y 486,000 pies cuadrados de nuevos contratos y renovaciones firmadas en el cuarto trimestre. La empresa logró una tasa de retención de inquilinos del 76% y un crecimiento de la tasa de alquiler del 5.9% sobre una base de acumulación.
Para 2025, BDN inició la guía con un FFO de $0.60 a $0.72 por acción diluida, proyectando una ocupación principal a fin de año del 88-89% y un rango de arrendamientos principales del 89-90%. La empresa mantiene una fuerte liquidez sin préstamos en su línea de crédito de $600 millones y con $90 millones en efectivo.
브랜디와인 리얼티 트러스트 (NYSE:BDN)는 2024년 4분기 및 연간 실적을 발표하며, 4분기에 $(43.3) 백만 또는 주당 $(0.25)의 순손실을 기록했습니다. 여기에는 $(23.8) 백만의 비현금 손상 차감이 포함되어 있습니다. FFO는 $29.9 백만 또는 희석 주당 $0.17입니다.
회사는 $300 백만 이상의 자산 처분을 완료하였으며, 초기 목표인 $90 백만을 초과 달성했습니다. 주요 운영 지표는 다음과 같습니다: 87.8%의 핵심 포트폴리오 점유율, 89.9%의 임대율, 4분기에 체결된 486,000 제곱피트의 신규 및 갱신 임대입니다. 이 회사는 76%의 세입자 유지 비율과 5.9%의 임대료 성장률을 기록했습니다.
2025년을 위해 BDN은 희석 주당 $0.60-$0.72의 FFO 가이던스를 시작하였으며, 연말 핵심 점유율을 88-89%, 핵심 임대 범위를 89-90%로 예상하고 있습니다. 이 회사는 $600 백만의 신용 한도에서 차입이 없고 $90 백만의 현금을 보유하여 강력한 유동성을 유지하고 있습니다.
Brandywine Realty Trust (NYSE:BDN) a publié ses résultats du quatrième trimestre et de l'année 2024, affichant une perte nette de $(43.3) millions ou $(0.25) par action au quatrième trimestre, incluant une charge de dépréciation non monétaire de $(23.8) millions. L'FFO était de $29.9 millions ou $0.17 par action diluée.
L'entreprise a réalisé plus de $300 millions en cessions, dépassant son objectif initial de $90 millions. Les principaux indicateurs opérationnels incluent : 87.8% de taux d'occupation du portefeuille core, 89.9% de taux de location, et 486,000 pieds carrés de nouveaux baux et renouvellements signés au quatrième trimestre. L'entreprise a atteint un taux de retention des locataires de 76% et une croissance des loyers de 5.9% sur une base d'accumulation.
Pour 2025, BDN a lancé des prévisions avec un FFO de $0.60-$0.72 par action diluée, projetant un taux d'occupation core de 88-89% et un taux de location core de 89-90% à la fin de l'année. L'entreprise maintient une solide liquidité sans emprunts sur sa ligne de crédit de $600 millions et avec $90 millions de liquidités.
Brandywine Realty Trust (NYSE:BDN) hat seine Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und einen Nettoverlust von $(43.3) Millionen oder $(0.25) pro Aktie im vierten Quartal ausgewiesen, einschließlich einer nicht zahlungswirksamen Wertminderung in Höhe von $(23.8) Millionen. Das FFO betrug $29.9 Millionen oder $0.17 pro verwässerter Aktie.
Das Unternehmen hat über $300 Millionen an Veräußerungen abgeschlossen und damit das ursprüngliche Ziel von $90 Millionen übertroffen. Wichtige betriebliche Kennzahlen umfassen: eine Kern-Portfolioumsatzquote von 87.8%, einen Vermietungsgrad von 89.9% und 486.000 Quadratfuß an neuen und erneuerten Mietverträgen, die im vierten Quartal unterzeichnet wurden. Das Unternehmen erreichte eine Mieternhaltungsquote von 76% und ein Mietwachstum von 5.9% auf Basis der Accrual.
Für 2025 gab BDN eine Prognose mit einem FFO von $0.60-$0.72 pro verwässerter Aktie ab und prognostiziert eine Kern-Umsatzquote zum Jahresende von 88-89% und einen Kern-Vermietungsbereich von 89-90%. Das Unternehmen weist eine starke Liquidität auf, ohne Schulden bei seiner Kreditlinie von $600 Millionen und mit $90 Millionen in bar.
- Exceeded $300 million in dispositions against $90 million target
- Strong liquidity position with $600 million undrawn credit line and $90 million cash
- 5.9% rental rate growth on accrual basis
- 76% tenant retention ratio in Q4
- 783,000 square feet of commercial leasing including 130,000 square feet in developments
- Q4 net loss of $(43.3) million, including $(23.8) million impairment charge
- FFO declined to $0.17 per share in Q4 2024 vs $0.27 in Q4 2023
- Same store NOI decreased 1.6% on accrual basis
- Lower 2025 FFO guidance ($0.60-$0.72) compared to 2024 results ($0.85)
Insights
Brandywine's Q4 2024 results paint a complex picture of a REIT navigating challenging market conditions. The 87.8% occupancy rate and 89.9% lease rate reflect ongoing office sector headwinds, though the 783,000 square feet of new commercial leasing demonstrates some market resilience.
Three critical financial developments stand out: First, the strategic disposition of
The 2025 guidance reveals cautious optimism but also highlights ongoing pressures. The projected same-store NOI range of
The strategic disposition of assets in 2024 demonstrates shrewd market timing and portfolio optimization. The sale of One and Two Barton Skyway in Austin for
The leasing momentum, particularly the 130,000 square feet of commercial signed leases within developments, suggests targeted demand for quality assets despite broader market headwinds. The completion of the life science project at 3151 Market Street in Philadelphia reflects strategic diversification beyond traditional office space, though lease-up progress will be important to watch.
Market dynamics are reflected in the
PHILADELPHIA, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (NYSE:BDN) today reported its financial and operating results for the three and twelve-month periods ended December 31, 2024.
Management Comments
“We accomplished or exceeded many of our full year 2024 business plan objectives including speculative revenue, tenant retention, our same store NOI results and rental rate mark-to-markets,” stated Jerry Sweeney, President and Chief Executive Officer of Brandywine Realty Trust. “In addition to our operating metrics, we completed over
Fourth Quarter Highlights
Financial Results
- Net loss available to common shareholders:
$(43.3) million , or$(0.25) per share. These results include a$(23.8) million , or$(0.14) per share, non-cash impairment charge primarily related to two of our unconsolidated joint ventures located in the Metropolitan D.C. area.
- Funds from Operations (FFO) available to common shareholders:
$29.9 million , or$0.17 per diluted share.
Portfolio Results
- Core Portfolio:
87.8% occupied and89.9% leased.
- New and Renewal Leases Signed: 486,000 square feet in the fourth quarter and 1,306,000 square feet for the full year 2024 in our wholly-owned portfolio and including leasing within our unconsolidated joint ventures totaled 783,000 square feet in the fourth quarter and 2,335,000 square feet for the full year 2024.
- Rental Rate Mark-to-Market:
5.9% on an accrual basis and1.1% on a cash basis.
- Tenant Retention Ratio:
76% in fourth quarter and63% for 2024.
- Same Store NOI Results: Decreased (1.6)% on an accrual basis and increased
0.5% on a cash basis.
Transaction Activity
Disposition Activity
- As previously announced on November 19, 2024, we sold One and Two Barton Skyway, located at 1501 and 1601 South MoPac Expressway in Southwest Austin, to the City of Austin. The 391,000 square-foot office buildings sold for
$107.6 million , or$275 per square foot. Net proceeds ($102.4 million ) were used to repay our unsecured line of credit and general corporate purposes. - As previously announced on December 24, 2024, we sold our
50% interest in an unconsolidated joint venture owning 4040 Wilson, located in Arlington’s Ballston submarket for$190.5 million ($95.25 million for Brandywine’s50% share). 4040 Wilson has 405,000 square feet of office, retail, and residential space, as well as 494 parking spaces and was96% leased (residential) and94% leased (commercial) at the time of sale. Net proceeds are expected to be used for general corporate purposes.
- As previously announced on December 24, 2024, an unconsolidated joint venture sold the Dabney and Brittons Hill portfolio, representing 14 industrial/flex buildings totaling 643,000 square feet for
$66.8 million , generating approximately$15.5 million of net proceeds to Brandywine for its50% ownership interest. In connection with the sale, we sold a wholly-owned 11-acre land parcel operating under a long-term parking lease for$8.5 million . The assets were fully leased at closing. Net proceeds are expected to be used for general corporate purposes.
Finance Activity
- We had no outstanding balance on our
$600.0 million unsecured revolving credit facility as of December 31, 2024.
- We had
$90.2 million of cash and cash equivalents on-hand as of December 31, 2024
Results for the Three and Twelve-Month Periods Ended December 31, 2024
Net loss available to common shareholders totaled
FFO available to common shareholders and units in the fourth quarter of 2024 totaled
Net loss totaled
FFO available to common shareholders and units for the twelve months ended 2024 totaled
FFO payout ratio (
Operating and Leasing Activity
In the fourth quarter of 2024, our Net Operating Income (NOI), excluding termination fees, bad debt expense and other income items decreased (1.6)% on an accrual basis and increased
We leased approximately 486,000 square feet and commenced occupancy on 198,000 square feet during the fourth quarter of 2024. The fourth quarter occupancy activity includes 101,000 square feet of renewals, 73,000 square feet of new leases and 24,000 square feet of tenant expansions. We have an additional 246,000 square feet of executed new leases scheduled to commence occupancy on currently vacant space subsequent to December 31, 2024.
We achieved
For the year ended 2024, our leasing activity totaled approximately 1,306,000 square feet and commenced occupancy on 1,023,000 square feet. Our year end 2024 occupancy activity includes 597,000 of renewals, 297,000 of new leases and 129,000 square feet of tenant expansions.
At December 31, 2024, our core portfolio of 63 properties comprising 11.9 million square feet was
Distributions
On December 10, 2024, 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 providing our 2025 loss per share guidance of
| Guidance for 2025 | Range | ||
| Loss per diluted share allocated to common shareholders | to | ||
| Plus: real estate depreciation, amortization | 1.20 | 1.20 | |
| FFO per diluted share | to | ||
Our 2025 FFO key assumptions include:
- Year-end Core Occupancy Range: 88
-89% ; - Year-end Core Leased Range: 89
-90% ; - Rental Rate Mark-to-Market (accrual): 3
-4% ; - Rental Rate Mark-to-Market (cash): (3)-(2)%;
- Same Store (accrual) NOI Range: (1)-
1% ; - Same Store (cash) NOI Range: 1
-3% ; - Speculative Revenue Target:
$27.0 -$28.0 million ,$22.9 million achieved; - Tenant Retention Rate Range: 59
-61% ; - Property Acquisition Activity: None;
- Property Sales Activity (excluding land):
$40.0 -$60.0 million ; - Development Starts: One Start;
- Financing Activity: Refinance our
$70 million unsecured term loan (scheduled to mature February 2025) and$50.0 million construction loan (scheduled to mature August 2026); - Share Buyback Activity: None;
- Annual earnings and FFO per diluted share based on 178.0 million fully diluted weighted average common shares and;
- The Company has provided a reconciliation of 2025 FFO guidance to our 2024 actual FFO results in its Supplemental Information Package which can be found on the investor relations page of its website.
Except as outlined in our 2025 business plan, 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 fourth 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 the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 126 properties and 19.4 million square feet as of December 31, 2024. 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 release our fourth quarter earnings after the market close on Tuesday February 4, 2025 and will hold our fourth quarter conference call on Wednesday February 5, 2025 at 9:00 a.m. Eastern Time. To access the conference call by phone, please visit 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 – First Quarter 2025 Conference Call
We anticipate we will release our first quarter 2025 earnings on Tuesday, April 22, 2025, after the market close and will host our first quarter 2025 conference call on Wednesday, April 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, 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: risks related to the impact of other potential future outbreaks of infectious diseases on our financial condition, results of operations and cash flows and those of our tenants as well as on the economy and real estate and financial markets; 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, 2023 and our Form 10-Q for the quarter ended September 30, 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 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 or re-entitlement.
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) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Real estate investments: | |||||||
| Operating properties | $ | 3,374,661 | $ | 3,542,232 | |||
| Accumulated depreciation | (1,170,339 | ) | (1,131,792 | ) | |||
| Right of use asset - operating leases, net | 18,412 | 19,031 | |||||
| Operating real estate investments, net | 2,222,734 | 2,429,471 | |||||
| Construction-in-progress | 94,628 | 135,529 | |||||
| Land held for development | 81,318 | 82,510 | |||||
| Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 | |||||
| Total real estate investments, net | 2,426,442 | 2,675,272 | |||||
| Cash and cash equivalents | 90,229 | 58,319 | |||||
| Restricted cash and escrows | 5,948 | 9,215 | |||||
| Accounts receivable | 12,703 | 11,977 | |||||
| Accrued rent receivable, net of allowance of | 184,312 | 186,708 | |||||
| Investment in unconsolidated real estate ventures | 570,455 | 601,227 | |||||
| Deferred costs, net | 84,436 | 95,984 | |||||
| Intangible assets, net | 5,505 | 7,694 | |||||
| Other assets | 113,647 | 86,051 | |||||
| Total assets | $ | 3,493,677 | $ | 3,732,447 | |||
| LIABILITIES AND BENEFICIARIES' EQUITY | |||||||
| Secured term loans, net | $ | 275,338 | $ | 255,671 | |||
| Unsecured term loans, net | 318,949 | 318,499 | |||||
| Unsecured senior notes, net | 1,618,527 | 1,564,662 | |||||
| Accounts payable and accrued expenses | 129,717 | 123,825 | |||||
| Distributions payable | 26,256 | 26,017 | |||||
| Deferred income, gains and rent | 35,414 | 24,248 | |||||
| Intangible liabilities, net | 7,292 | 8,270 | |||||
| Lease liability - operating leases | 23,546 | 23,369 | |||||
| Other liabilities | 12,587 | 63,729 | |||||
| Total liabilities | $ | 2,447,626 | $ | 2,408,290 | |||
| Brandywine Realty Trust's Equity: | |||||||
| Common Shares of Brandywine Realty Trust's beneficial interest, | 1,724 | 1,719 | |||||
| Additional paid-in-capital | 3,182,621 | 3,163,949 | |||||
| Deferred compensation payable in common shares | 20,456 | 19,965 | |||||
| Common shares in grantor trust, 1,221,333 and 1,194,127 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively | (20,456 | ) | (19,965 | ) | |||
| Cumulative earnings | 784,963 | 979,406 | |||||
| Accumulated other comprehensive income (loss) | 2,521 | (668 | ) | ||||
| Cumulative distributions | (2,931,730 | ) | (2,827,022 | ) | |||
| Total Brandywine Realty Trust's equity | 1,040,099 | 1,317,384 | |||||
| Noncontrolling interests | 5,952 | 6,773 | |||||
| Total beneficiaries' equity | $ | 1,046,051 | $ | 1,324,157 | |||
| Total liabilities and beneficiaries' equity | $ | 3,493,677 | $ | 3,732,447 | |||
| BRANDYWINE REALTY TRUST CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except share and per share data) |
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | |||||||||||||||
| Rents | $ | 114,267 | $ | 119,207 | $ | 469,242 | $ | 479,849 | |||||||
| Third party management fees, labor reimbursement and leasing | 6,057 | 5,635 | 23,742 | 24,417 | |||||||||||
| Other | 1,581 | 5,328 | 12,533 | 10,385 | |||||||||||
| Total revenue | 121,905 | 130,170 | 505,517 | 514,651 | |||||||||||
| Operating expenses | |||||||||||||||
| Property operating expenses | 34,358 | 33,277 | 129,890 | 129,885 | |||||||||||
| Real estate taxes | 10,707 | 10,993 | 47,726 | 49,974 | |||||||||||
| Third party management expenses | 2,258 | 2,424 | 9,714 | 10,088 | |||||||||||
| Depreciation and amortization | 43,174 | 47,152 | 176,704 | 188,797 | |||||||||||
| General and administrative expenses | 10,055 | 7,951 | 42,781 | 34,862 | |||||||||||
| Provision for impairment | 248 | 115,439 | 44,655 | 131,573 | |||||||||||
| Total operating expenses | 100,800 | 217,236 | 451,470 | 545,179 | |||||||||||
| Gain on sale of real estate | |||||||||||||||
| Net gain on disposition of real estate | 2,297 | 7,736 | 2,297 | 7,736 | |||||||||||
| Net gain on sale of undepreciated real estate | — | 430 | — | 1,211 | |||||||||||
| Total gain on sale of real estate | 2,297 | 8,166 | 2,297 | 8,947 | |||||||||||
| Operating income (loss) | 23,402 | (78,900 | ) | 56,344 | (21,581 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest and investment income | 1,275 | 353 | 3,847 | 1,671 | |||||||||||
| Interest expense | (31,202 | ) | (24,779 | ) | (116,306 | ) | (95,456 | ) | |||||||
| Interest expense - amortization of deferred financing costs | (1,247 | ) | (1,118 | ) | (5,000 | ) | (4,369 | ) | |||||||
| Equity in loss of unconsolidated real estate ventures | (37,628 | ) | (53,411 | ) | (191,585 | ) | (77,915 | ) | |||||||
| Net gain on real estate venture transactions | 2,247 | — | 56,750 | 181 | |||||||||||
| Gain on early extinguishment of debt | — | 138 | 941 | 138 | |||||||||||
| Net loss before income taxes | (43,153 | ) | (157,717 | ) | (195,009 | ) | (197,331 | ) | |||||||
| Income tax provision | (3 | ) | (37 | ) | (14 | ) | (72 | ) | |||||||
| Net loss | (43,156 | ) | (157,754 | ) | (195,023 | ) | (197,403 | ) | |||||||
| Net loss attributable to noncontrolling interests | 128 | 474 | 580 | 614 | |||||||||||
| Net loss attributable to Brandywine Realty Trust | (43,028 | ) | (157,280 | ) | (194,443 | ) | (196,789 | ) | |||||||
| Nonforfeitable dividends allocated to unvested restricted shareholders | (289 | ) | (134 | ) | (1,178 | ) | (567 | ) | |||||||
| Net loss attributable to Common Shareholders of Brandywine Realty Trust | $ | (43,317 | ) | $ | (157,414 | ) | $ | (195,621 | ) | $ | (197,356 | ) | |||
| Basic loss per Common Share | $ | (0.25 | ) | $ | (0.91 | ) | $ | (1.13 | ) | $ | (1.15 | ) | |||
| Diluted loss per Common Share | $ | (0.25 | ) | $ | (0.91 | ) | $ | (1.13 | ) | $ | (1.15 | ) | |||
| Basic weighted average shares outstanding | 172,665,995 | 172,097,661 | 172,526,996 | 171,959,210 | |||||||||||
| Diluted weighted average shares outstanding | 172,665,995 | 172,097,661 | 172,526,996 | 171,959,210 | |||||||||||
| BRANDYWINE REALTY TRUST FUNDS FROM OPERATIONS (unaudited, in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Reconciliation of Net Income to Funds from Operations: | |||||||||||||||
| Net loss attributable to common shareholders | $ | (43,317 | ) | $ | (157,414 | ) | $ | (195,621 | ) | $ | (197,356 | ) | |||
| Add (deduct): | |||||||||||||||
| Net loss attributable to noncontrolling interests - LP units | (129 | ) | (473 | ) | (584 | ) | (592 | ) | |||||||
| Nonforfeitable dividends allocated to unvested restricted shareholders | 289 | 134 | 1,178 | 567 | |||||||||||
| Net gain on real estate venture transactions | (2,034 | ) | — | (63,696 | ) | (181 | ) | ||||||||
| Net gain on disposition of real estate | (2,297 | ) | (7,736 | ) | (2,297 | ) | (7,736 | ) | |||||||
| Provision for impairment | 248 | 115,439 | 44,101 | 131,573 | |||||||||||
| Company's share of impairment of an unconsolidated real estate venture | 23,808 | 37,175 | 147,184 | 37,175 | |||||||||||
| Depreciation and amortization: | |||||||||||||||
| Real property | 37,412 | 40,971 | 153,481 | 159,213 | |||||||||||
| Leasing costs including acquired intangibles | 4,961 | 5,294 | 19,746 | 26,131 | |||||||||||
| Company’s share of unconsolidated real estate ventures | 11,231 | 14,016 | 47,013 | 50,565 | |||||||||||
| Partners’ share of consolidated real estate ventures | (3 | ) | (4 | ) | (9 | ) | (20 | ) | |||||||
| Funds from operations | $ | 30,169 | $ | 47,402 | $ | 150,496 | $ | 199,339 | |||||||
| Funds from operations allocable to unvested restricted shareholders | (318 | ) | (163 | ) | (1,624 | ) | (1,043 | ) | |||||||
| Funds from operations available to common share and unit holders (FFO) | $ | 29,851 | $ | 47,239 | $ | 148,872 | $ | 198,296 | |||||||
| FFO per share - fully diluted | $ | 0.17 | $ | 0.27 | $ | 0.85 | $ | 1.15 | |||||||
| Weighted-average shares/units outstanding — fully diluted | 177,569,866 | 173,347,951 | 175,969,844 | 173,046,299 | |||||||||||
| Distributions paid per common share | $ | 0.15 | $ | 0.15 | $ | 0.60 | $ | 0.72 | |||||||
| FFO payout ratio (distributions paid per common share/FFO per diluted share) | 88.2 | % | 55.6 | % | 70.6 | % | 62.6 | % | |||||||
| BRANDYWINE REALTY TRUST SAME STORE OPERATIONS – 4th QUARTER (unaudited and in thousands) |
Of the 64 properties owned by the Company as of December 31, 2024, a total of 61 properties ("Same Store Properties") containing an aggregate of 11,518 million net rentable square feet were owned for the entire three months ended December 31, 2024 and 2023. As of December 31, 2024, three properties were recently completed/acquired. Average occupancy for the Same Store Properties was
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | |||||||
| Rents | $ | 102,927 | $ | 103,681 | |||
| Other | 262 | 314 | |||||
| Total revenue | 103,189 | 103,995 | |||||
| Operating expenses | |||||||
| Property operating expenses | 29,255 | 28,992 | |||||
| Real estate taxes | 9,889 | 10,057 | |||||
| Net operating income | $ | 64,045 | $ | 64,946 | |||
| Net operating income - percentage change over prior year | (1.4 | )% | |||||
| Net operating income, excluding other items | $ | 64,079 | $ | 65,108 | |||
| Net operating income, excluding other items - percentage change over prior year | (1.6 | )% | |||||
| Net operating income | $ | 64,045 | $ | 64,946 | |||
| Straight line rents & other | 625 | (407 | ) | ||||
| Above/below market rent amortization | (210 | ) | (253 | ) | |||
| Amortization of tenant inducements | 220 | 120 | |||||
| Non-cash ground rent expense | 239 | 249 | |||||
| Cash - Net operating income | $ | 64,919 | $ | 64,655 | |||
| Cash - Net operating income - percentage change over prior year | 0.4 | % | |||||
| Cash - Net operating income, excluding other items | $ | 64,638 | $ | 64,298 | |||
| Cash - Net operating income, excluding other items - percentage change over prior year | 0.5 | % | |||||
| Three Months Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Net loss: | $ | (43,156 | ) | $ | (157,754 | ) | |
| Add/(deduct): | |||||||
| Interest income | (1,275 | ) | (353 | ) | |||
| Interest expense | 31,202 | 24,779 | |||||
| Interest expense - amortization of deferred financing costs | 1,247 | 1,118 | |||||
| Equity in loss of unconsolidated real estate ventures | 37,628 | 53,411 | |||||
| Net gain on real estate venture transactions | (2,247 | ) | — | ||||
| Net gain on disposition of real estate | (2,297 | ) | (7,736 | ) | |||
| Net gain on sale of undepreciated real estate | — | (430 | ) | ||||
| Gain on early extinguishment of debt | — | (138 | ) | ||||
| Depreciation and amortization | 43,174 | 47,152 | |||||
| General & administrative expenses | 10,055 | 7,951 | |||||
| Income tax provision | 3 | 37 | |||||
| Provision for impairment | 248 | 115,439 | |||||
| Consolidated net operating income | 74,582 | 83,476 | |||||
| Less: Net operating income of non-same store properties and elimination of non-property specific operations | (10,537 | ) | (18,530 | ) | |||
| Same store net operating income | $ | 64,045 | $ | 64,946 | |||
BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS – TWELVE MONTHS
(unaudited and in thousands)
Of the 64 properties owned by the Company as of December 31, 2024, a total of 61 properties ("Same Store Properties") containing an aggregate of 11,518 million net rentable square feet were owned for the entire twelve months ended December 31, 2024 and 2023. As of December 31, 2024, three properties were recently completed/acquired. Average occupancy for the Same Store Properties was
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | |||||||
| Rents | $ | 413,754 | $ | 417,297 | |||
| Other | 1,054 | 1,063 | |||||
| Total revenue | 414,808 | 418,360 | |||||
| Operating expenses | |||||||
| Property operating expenses | 111,020 | 111,155 | |||||
| Real estate taxes | 42,276 | 43,160 | |||||
| Net operating income | $ | 261,512 | $ | 264,045 | |||
| Net operating income - percentage change over prior year | (1.0 | )% | |||||
| Net operating income, excluding other items | $ | 262,194 | $ | 264,315 | |||
| Net operating income, excluding other items - percentage change over prior year | (0.8 | )% | |||||
| Net operating income | $ | 261,512 | $ | 264,045 | |||
| Straight line rents & other | 656 | (6,033 | ) | ||||
| Above/below market rent amortization | (890 | ) | (1,046 | ) | |||
| Amortization of tenant inducements | 777 | 513 | |||||
| Non-cash ground rent expense | 960 | 1,002 | |||||
| Cash - Net operating income | $ | 263,015 | $ | 258,481 | |||
| Cash - Net operating income - percentage change over prior year | 1.8 | % | |||||
| Cash - Net operating income, excluding other items | $ | 262,549 | $ | 256,131 | |||
| Cash - Net operating income, excluding other items - percentage change over prior year | 2.5 | % | |||||
| Year Ended December 31, | |||||||
| 2024 | 2023 | ||||||
| Net loss: | $ | (195,023 | ) | $ | (197,403 | ) | |
| Add/(deduct): | |||||||
| Interest income | (3,847 | ) | (1,671 | ) | |||
| Interest expense | 116,306 | 95,456 | |||||
| Interest expense - amortization of deferred financing costs | 5,000 | 4,369 | |||||
| Equity in loss of unconsolidated real estate ventures | 191,585 | 77,915 | |||||
| Net gain on real estate venture transactions | (56,750 | ) | (181 | ) | |||
| Net gain on disposition of real estate | (2,297 | ) | (7,736 | ) | |||
| Net gain on sale of undepreciated real estate | — | (1,211 | ) | ||||
| Gain on early extinguishment of debt | (941 | ) | (138 | ) | |||
| Depreciation and amortization | 176,704 | 188,797 | |||||
| General & administrative expenses | 42,781 | 34,862 | |||||
| Income tax provision | 14 | 72 | |||||
| Provision for impairment | 44,655 | 131,573 | |||||
| Consolidated net operating income | 318,187 | 324,704 | |||||
| Less: Net operating income of non-same store properties and elimination of non-property specific operations | (56,675 | ) | (60,659 | ) | |||
| Same store net operating income | $ | 261,512 | $ | 264,045 | |||
| Company / Investor Contact: | |
| Tom Wirth EVP & CFO 610-832-7434 tom.wirth@bdnreit.com | |
| Heather Crowell Gregory FCA 215-316-6271 heather@gregoryfca.com | |
FAQ
What was BDN's Q4 2024 FFO per share and how does it compare to Q4 2023?
How much in property dispositions did BDN complete in 2024?
What is BDN's projected FFO guidance range for 2025?
What was BDN's core portfolio occupancy rate at the end of 2024?
How much cash and available credit did BDN have at the end of 2024?
