Brandywine Realty Trust Announces Second Quarter Results
Brandywine Realty Trust (NYSE: BDN) reported its Q2 2024 financial results, narrowing its 2024 FFO guidance to $0.91-$0.96 per diluted share. Key highlights include:
- Net income of $29.9 million, or $0.17 per diluted share
- FFO of $38.0 million, or $0.22 per diluted share
- Core portfolio 87.3% occupied and 88.5% leased
- Rental rate mark-to-market increased 10.8% on an accrual basis
- Same-store NOI decreased 1.3% on an accrual basis, increased 2.4% on a cash basis
The company completed a $400 million offering of 8.875% Guaranteed Notes due 2029 and recapitalized its MAP Joint Venture. BDN raised its full-year speculative revenue target to $25.5 million and anticipates positive mark-to-market rental rate increases for 2024.
Brandywine Realty Trust (NYSE: BDN) ha riportato i risultati finanziari del secondo trimestre 2024, riducendo le stime FFO per il 2024 a $0.91-$0.96 per azione diluita. I punti salienti includono:
- Reddito netto di $29.9 milioni, ovvero $0.17 per azione diluita
- FFO di $38.0 milioni, ovvero $0.22 per azione diluita
- Portafoglio principale occupato al 87.3% e locato all'88.5%
- Aumento del tasso di affitto mark-to-market del 10.8% su base di competenza
- NOI dello stesso negozio diminuito dell'1.3% su base di competenza, aumentato del 2.4% su base di cassa
La società ha completato un'offerta di $400 milioni di Notes Garantiti al 8.875% con scadenza nel 2029 e ha ricapitalizzato la sua Joint Venture MAP. BDN ha alzato l'obiettivo di fatturato speculativo per l'intero anno a $25.5 milioni e prevede un incremento positivo dei tassi di affitto mark-to-market per il 2024.
Brandywine Realty Trust (NYSE: BDN) reportó sus resultados financieros del segundo trimestre de 2024, reduciendo su orientación de FFO para 2024 a $0.91-$0.96 por acción diluida. Los aspectos destacados incluyen:
- Ingreso neto de $29.9 millones, o $0.17 por acción diluida
- FFO de $38.0 millones, o $0.22 por acción diluida
- Portafolio principal ocupado al 87.3% y arrendado al 88.5%
- Aumento del 10.8% en la tasa de alquiler mark-to-market sobre una base de acumulación
- NOI de tiendas comparables disminuyó un 1.3% en base de acumulación, aumentó un 2.4% en base de efectivo
La compañía completó una oferta de $400 millones de Notas Garantizadas al 8.875% con vencimiento en 2029 y recapitalizó su Joint Venture MAP. BDN elevó su objetivo de ingresos especulativos para el año completo a $25.5 millones y anticipa aumentos positivos en las tasas de alquiler mark-to-market para 2024.
브랜디와인 리얼티 트러스트 (NYSE: BDN)는 2024년 2분기 재무 결과를 발표하며, 2024년 FFO 가이던스를 주당 $0.91-$0.96로 축소했습니다. 주요 하이라이트는 다음과 같습니다:
- 순이익 $29.9 백만, 주당 $0.17
- FFO $38.0 백만, 주당 $0.22
- 핵심 포트폴리오 87.3% 점유 및 88.5% 임대
- 임대료 마크 투 마켓 10.8% 상승 (발생기준)
- 동일 매장 NOI 1.3% 감소 (발생기준), 2.4% 증가 (현금 기준)
회사는 2029년 만기 8.875% 보장 노트 4억 달러 발행을 완료했으며, MAP 합작 투자에 자본을 재구성했습니다. BDN은 연간 투기적 수익 목표를 $25.5 백만으로 상향 조정했으며, 2024년을 위한 긍정적인 임대료 상승을 예상합니다.
Brandywine Realty Trust (NYSE: BDN) a annoncé ses résultats financiers pour le deuxième trimestre 2024, réduisant ses prévisions FFO pour 2024 à 0,91 $ - 0,96 $ par action diluée. Les points clés comprennent :
- Revenu net de 29,9 millions de dollars, soit 0,17 $ par action diluée
- FFO de 38,0 millions de dollars, soit 0,22 $ par action diluée
- Portefeuille principal occupé à 87,3 % et loué à 88,5 %
- Taux de location mark-to-market en hausse de 10,8 % sur une base d'accumulation
- NOI des mêmes magasins en baisse de 1,3 % sur une base d'accumulation, en hausse de 2,4 % sur une base de trésorerie
L'entreprise a complété une émission de 400 millions de dollars de Notes Garanties à 8,875 % arrivant à échéance en 2029 et a recapitalisé sa coentreprise MAP. BDN a relevé son objectif de revenus spéculatifs pour l'année entière à 25,5 millions de dollars et anticipe des augmentations positives des taux de location mark-to-market pour 2024.
Brandywine Realty Trust (NYSE: BDN) hat seine Finanzergebnisse für das 2. Quartal 2024 veröffentlicht und die FFO-Prognose für 2024 auf $0.91-$0.96 pro verwässerter Aktie eingegrenzt. Wichtige Highlights sind:
- Nettogewinn von $29,9 Millionen oder $0,17 pro verwässerter Aktie
- FFO von $38,0 Millionen oder $0,22 pro verwässerter Aktie
- Hauptportfolio zu 87,3% belegt und zu 88,5% vermietet
- Mark-to-Market-Mietpreise sind um 10,8% auf Abgrenzungsbasis gestiegen
- NOI aus gleichen Geschäften sank um 1,3% auf Abgrenzungsbasis, stieg jedoch um 2,4% auf Cash-Basis
Das Unternehmen hat ein Angebot über $400 Millionen an garantierten Anleihen mit 8,875% Fälligkeit 2029 abgeschlossen und sein MAP Joint Venture rekapitalisiert. BDN erhöhte die Umsatzprognose für das Gesamtjahr auf $25,5 Millionen und erwartet positive Mietpreissteigerungen für 2024.
- Raised full-year speculative revenue target by $1.0 million to $25.5 million
- Completed $400 million offering of 8.875% Guaranteed Notes due 2029
- Rental rate mark-to-market increased 10.8% on an accrual basis
- Same-store NOI increased 2.4% on a cash basis
- Core portfolio leased percentage improved to 88.5%
- FFO decreased to $0.22 per diluted share from $0.29 in Q2 2023
- Same-store NOI decreased 1.3% on an accrual basis
- Core portfolio occupancy decreased to 87.3% from 89.7% in Q2 2023
- Net negative absorption of 44,000 square feet in Q2 2024
- Cash basis rental rate mark-to-market decreased 0.4%
Narrows 2024 Guidance
PHILADELPHIA, July 23, 2024 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (NYSE: BDN) today reported its financial and operating results for the three and six-month periods ended June 30, 2024.
Management Comments
“We continue to make excellent progress on our 2024 business plan highlighted by exceeding our speculative revenue target at the midpoint of our guidance,” stated Gerard H. Sweeney, President and Chief Executive Officer for Brandywine Realty Trust. “Based on our 2024 first half leasing performance, we are raising our full year midpoint target by
Second Quarter Highlights
Financial Results
- Net Income to common shareholders:
$29.9 million , or$0.17 per diluted share. Our second quarter results include one-time, non-cash income totaling$53.8 million , or$0.31 per diluted share, related to recapitalizing one of our joint ventures, as discussed below. - Funds from Operations (FFO):
$38.0 million , or$0.22 per diluted share.
Portfolio Results
- Core Portfolio:
87.3% occupied and88.5% leased. - New and Renewal Leases Signed: 164,000 square feet wholly-owned and 501,000 square feet, including our joint ventures.
- Rental Rate Mark-to-Market: Increased
10.8% on an accrual basis and decreased (0.4% ) on a cash basis. - Same Store Net Operating Income: Decreased (
1.3% ) on an accrual basis and increased2.4% on a cash basis - Tenant Retention Ratio:
67% .
Recent Transaction Activity
Joint Venture Activity
- During June, we recapitalized our unconsolidated joint venture, referred to as the “MAP Joint Venture” with both the existing leasehold lender and fee ground owner. The recapitalization encompassed a 5-year leasehold mortgage (inclusive of 2 one-year extensions) and the redemption of our former
50% partner in the leasehold interests for a nominal amount.
As part of this recapitalization, the leasehold lender will receive a95% future interest in the portfolio’s cash flow and residual value. Additionally, to facilitate the non-recourse restructuring, Brandywine and the fee owner agreed to acquire the leasehold estate in a 14 property industrial and flex portfolio from the MAP Joint Venture for$26.0 million in a newly formed 50/50 venture whose proceeds were primarily used to reduce the existing first mortgage.
The intention of this new venture is to market these properties for sale to unrelated third party buyers. Prior to the recapitalization, Brandywine had a negative investment balance in the MAP joint venture and upon closing of the recapitalization recognized one-time, non-cash income totaling$53.8 million . Brandywine will remain the managing member and property services provider for this portfolio.
2024 Finance / Capital Markets Activity
- As previously announced, we completed an underwritten public offering of
$400 million aggregate principal amount of our8.875% Guaranteed Notes due 2029 (the “2029 Notes”). Interest on the 2029 Notes is payable semi-annually on April 12 and October 12 of each year, commencing October 12, 2024. The offering of the 2029 Notes closed on April 12, 2024. The net proceeds from the offering, after deducting underwriting discounts and transaction expenses related to the offering, totaled approximately$391.9 million . We used the net proceeds from the offering of the 2029 Notes to fund the repayment in full of our$335.1 million in aggregate principal amount of our4.10% Guaranteed Notes due October 1, 2024 and for general corporate purposes.
- As of June 30, 2024, we had a
$25.0 million outstanding balance on our$600.0 million unsecured line of credit.
- As of June 30, 2024, we had
$30.4 million of cash and cash equivalents on-hand.
- On May 6, 2024 our unconsolidated Cira Square Venture, in which we hold a
20% equity interest, obtained a new$160.0 million mortgage loan, which bears interest at a stated rate of8.817% per annum and matures in June 2029. Proceeds from the new mortgage loan, together with equity contributed pro rata by the partners in the Cira Square Venture, funded repayment of the$257.0 million mortgage debt of the Cira Square Venture that had a July 2024 maturity.
Results for the Three and Six Month Periods Ended June 30, 2024
Net Income allocated to common shares totaled
FFO available to common shares and units totaled
Net Income allocated to common shares totaled
Our FFO available to common shares and units for the first six months of 2024 totaled
Operating and Leasing Activity
In the second quarter of 2024, our same store Net Operating Income (NOI) excluding termination revenues and other income items decreased (
We leased approximately 164,000 square feet and commenced occupancy on 355,000 square feet during the second quarter of 2024. The second quarter occupancy activity includes 230,000 square feet of renewals, 88,000 square feet of new leases and 37,000 square feet of tenant expansions. We have an additional 144,000 square feet of executed new leasing scheduled to commence subsequent to June 30, 2024.
Our second quarter tenant retention ratio was
At June 30, 2024, our core portfolio of 69 properties comprises 12.7 million square feet was
Dividend Distributions
On May 23, 2024, our Board of Trustees declared a quarterly dividend distribution of
2024 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 2024 loss per share guidance from
Guidance for 2024 | Range | ||
(Loss) Income per diluted share allocated to common shareholders | to | ||
Plus: real estate depreciation, amortization | 1.23 | 1.23 | |
Less: net gain on real estate venture transactions | (0.31) | (0.31) | |
FFO per diluted share | to | ||
Our 2024 FFO key assumptions include:
- Year-end Core Occupancy Range: 87
-88% ; - Year-end Core Leased Range: 88
-89% ; - Rental Rate Growth (accrual): 11
-13% increased to 12-13% ; - Rental Rate Growth (cash): 1
-2% ; - Same Store (accrual) NOI Growth Range: (1)-
1% ; - Same Store (cash) NOI Growth Range: 1
-3% ; - Speculative Revenue Target: Increased
$1.0 million from$24.0 -$25.0 million to$25.0 -$26.0 million ,$25.6 million achieved at June 30, 2024; - Tenant Retention Rate Range: 57
-59% increased to 59-60% : 150 Basis Point Improvement; - Interest Expense Range:
$125 -$130 million ; - Property Acquisition Activity: None;
- Property Sales Activity (excluding land):
$80 -$100 million ; - Joint Venture Activity: Recapitalization of our MAP joint venture and formation of a new 50/50 joint venture;
- Development Starts: None;
- Financing Activity: Completed the refinance of our 2024 Notes (
$335.1 million outstanding); - Share Buyback Activity: None;
- Annual earnings and FFO per diluted share based on 176.0 million fully diluted weighted average common shares.
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 156 properties and 22.3 million square feet as of June 30, 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 hold our second quarter conference call on Wednesday July 24, 2024 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 2024 Conference Call
We expect to release our third quarter 2024 earnings on Tuesday, October 22 2024 after the market close and will host our third quarter 2024 conference call on Wednesday October 23, 2024 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.
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 2024 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, 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. 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.
BRANDYWINE REALTY TRUST CONSOLIDATED BALANCE SHEETS (unaudited, in thousands, except share and per share data) | |||||||
June 30, 2024 | December 31, 2023 | ||||||
ASSETS | |||||||
Real estate investments: | |||||||
Operating properties | $ | 3,546,602 | $ | 3,542,232 | |||
Accumulated depreciation | (1,192,146 | ) | (1,131,792 | ) | |||
Right of use asset - operating leases, net | 18,720 | 19,031 | |||||
Operating real estate investments, net | 2,373,176 | 2,429,471 | |||||
Construction-in-progress | 152,888 | 135,529 | |||||
Land held for development | 83,051 | 82,510 | |||||
Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 | |||||
Total real estate investments, net | 2,636,877 | 2,675,272 | |||||
Cash and cash equivalents | 30,369 | 58,319 | |||||
Restricted cash and escrow | 6,144 | 9,215 | |||||
Accounts receivable | 10,867 | 11,977 | |||||
Accrued rent receivable, net of allowance of | 191,802 | 186,708 | |||||
Investment in unconsolidated real estate ventures | 680,136 | 601,227 | |||||
Deferred costs, net | 92,931 | 95,984 | |||||
Intangible assets, net | 6,672 | 7,694 | |||||
Other assets | 98,382 | 86,051 | |||||
Total assets | $ | 3,754,180 | $ | 3,732,447 | |||
LIABILITIES AND BENEFICIARIES' EQUITY | |||||||
Secured debt, net | $ | 267,851 | $ | 255,671 | |||
Unsecured credit facility | 25,000 | — | |||||
Unsecured term loan, net | 331,646 | 318,499 | |||||
Unsecured senior notes, net | 1,617,063 | 1,564,662 | |||||
Accounts payable and accrued expenses | 115,531 | 123,825 | |||||
Distributions payable | 26,234 | 26,017 | |||||
Deferred income, gains and rent | 26,236 | 24,248 | |||||
Intangible liabilities, net | 7,786 | 8,270 | |||||
Lease liability - operating leases | 23,459 | 23,369 | |||||
Other liabilities | 13,977 | 63,729 | |||||
Total liabilities | $ | 2,454,783 | $ | 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 | 3,171,011 | 3,163,949 | |||||
Deferred compensation payable in common shares | 20,456 | 19,965 | |||||
Common shares in grantor trust, 1,252,467 and 1,194,127 issued and outstanding as of June 30, 2024 and December 31, 2023, respectively | (20,456 | ) | (19,965 | ) | |||
Cumulative earnings | 993,211 | 979,406 | |||||
Accumulated other comprehensive income | 6,117 | (668 | ) | ||||
Cumulative distributions | (2,879,378 | ) | (2,827,022 | ) | |||
Total Brandywine Realty Trust's equity | 1,292,685 | 1,317,384 | |||||
Noncontrolling interests | 6,712 | 6,773 | |||||
Total beneficiaries' equity | $ | 1,299,397 | $ | 1,324,157 | |||
Total liabilities and beneficiaries' equity | $ | 3,754,180 | $ | 3,732,447 | |||
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, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | |||||||||||||||
Rents | $ | 118,009 | $ | 118,133 | $ | 237,017 | $ | 238,981 | |||||||
Third party management fees, labor reimbursement and leasing | 5,698 | 6,227 | 11,592 | 12,229 | |||||||||||
Other | 1,639 | 1,522 | 3,221 | 3,899 | |||||||||||
Total revenue | 125,346 | 125,882 | 251,830 | 255,109 | |||||||||||
Operating expenses | |||||||||||||||
Property operating expenses | 31,353 | 31,891 | 63,632 | 65,485 | |||||||||||
Real estate taxes | 12,535 | 11,571 | 25,127 | 26,173 | |||||||||||
Third party management expenses | 2,426 | 2,557 | 4,969 | 5,196 | |||||||||||
Depreciation and amortization | 44,187 | 47,079 | 89,229 | 92,679 | |||||||||||
General and administrative expenses | 8,941 | 9,360 | 20,045 | 18,842 | |||||||||||
Provision for impairment | 6,427 | 4,468 | 6,427 | 4,468 | |||||||||||
Total operating expenses | 105,869 | 106,926 | 209,429 | 212,843 | |||||||||||
Gain on sale of real estate | |||||||||||||||
Net gain on sale of undepreciated real estate | — | — | — | 781 | |||||||||||
Total gain on sale of real estate | — | — | — | 781 | |||||||||||
Operating income | 19,477 | 18,956 | 42,401 | 43,047 | |||||||||||
Other income (expense): | |||||||||||||||
Interest and investment income | 1,512 | 520 | 1,933 | 1,025 | |||||||||||
Interest expense | (29,494 | ) | (23,669 | ) | (54,543 | ) | (46,322 | ) | |||||||
Interest expense - amortization of deferred financing costs | (1,415 | ) | (1,114 | ) | (2,506 | ) | (2,141 | ) | |||||||
Equity in loss of unconsolidated real estate ventures | (14,507 | ) | (7,598 | ) | (28,095 | ) | (13,765 | ) | |||||||
Net gain on real estate venture transactions | 53,762 | 181 | 53,733 | 181 | |||||||||||
Gain on early extinguishment of debt | 941 | — | 941 | — | |||||||||||
Net income ( loss) before income taxes | 30,276 | (12,724 | ) | 13,864 | (17,975 | ) | |||||||||
Income tax provision | (9 | ) | (13 | ) | (11 | ) | (38 | ) | |||||||
Net income (loss) | 30,267 | (12,737 | ) | 13,853 | (18,013 | ) | |||||||||
Net (income) loss attributable to noncontrolling interests | (94 | ) | 41 | (48 | ) | 58 | |||||||||
Net income (loss) attributable to Brandywine Realty Trust | 30,173 | (12,696 | ) | 13,805 | (17,955 | ) | |||||||||
Nonforfeitable dividends allocated to unvested restricted shareholders | (277 | ) | (204 | ) | (613 | ) | (274 | ) | |||||||
Net income (loss) attributable to Common Shareholders of Brandywine Realty Trust | $ | 29,896 | $ | (12,900 | ) | $ | 13,192 | $ | (18,229 | ) | |||||
PER SHARE DATA | |||||||||||||||
Basic income (loss) per Common Share | $ | 0.17 | $ | (0.08 | ) | $ | 0.08 | $ | (0.11 | ) | |||||
Basic weighted average shares outstanding | 172,563,136 | 171,962,162 | 172,385,087 | 171,818,463 | |||||||||||
Diluted income (loss) per Common Share | $ | 0.17 | $ | (0.08 | ) | $ | 0.08 | $ | (0.11 | ) | |||||
Diluted weighted average shares outstanding | 174,695,651 | 171,962,162 | 174,342,151 | 171,818,463 | |||||||||||
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, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | 29,896 | $ | (12,900 | ) | $ | 13,192 | $ | (18,229 | ) | |||||
Add (deduct): | |||||||||||||||
Net income (loss) attributable to noncontrolling interests - LP units | 91 | (41 | ) | 42 | (57 | ) | |||||||||
Nonforfeitable dividends allocated to unvested restricted shareholders | 277 | 204 | 613 | 274 | |||||||||||
Net loss on real estate venture transactions | (53,762 | ) | (181 | ) | (53,733 | ) | (181 | ) | |||||||
Provision for impairment | 6,427 | 4,468 | 6,427 | 4,468 | |||||||||||
Depreciation and amortization: | |||||||||||||||
Real property | 38,368 | 39,119 | 77,485 | 77,749 | |||||||||||
Leasing costs including acquired intangibles | 4,904 | 7,103 | 9,923 | 13,243 | |||||||||||
Company’s share of unconsolidated real estate ventures | 12,294 | 12,145 | 26,146 | 23,709 | |||||||||||
Partners’ share of consolidated real estate ventures | — | (4 | ) | — | (8 | ) | |||||||||
Funds from operations | $ | 38,495 | $ | 49,913 | $ | 80,095 | $ | 100,968 | |||||||
Funds from operations allocable to unvested restricted shareholders | (467 | ) | (309 | ) | (886 | ) | (533 | ) | |||||||
Funds from operations available to common share and unit holders (FFO) | $ | 38,028 | $ | 49,604 | $ | 79,209 | $ | 100,435 | |||||||
FFO per share - fully diluted | $ | 0.22 | $ | 0.29 | $ | 0.45 | $ | 0.58 | |||||||
Weighted-average shares/units outstanding — fully diluted | 175,211,246 | 172,797,873 | 174,857,745 | 172,811,483 | |||||||||||
Distributions paid per common share | $ | 0.15 | $ | 0.19 | $ | 0.30 | $ | 0.38 | |||||||
FFO payout ratio (distributions paid per common share/FFO per diluted share) | 68 | % | 66 | % | 67 | % | 66 | % | |||||||
BRANDYWINE REALTY TRUST SAME STORE OPERATIONS – 2nd QUARTER (unaudited and in thousands) |
Of the 72 properties owned by the Company as of June 30, 2024, a total of 68 properties ("Same Store Properties") containing an aggregate of 12.4 million net rentable square feet were owned for the entire three months ended June 30, 2024 and 2023. As of June 30, 2024, two properties were recently completed, and two properties were in development/redevelopment. The Same Store Properties were
Three Months Ended June 30, | |||||||
2024 | 2023 | ||||||
Revenue | |||||||
Rents | $ | 109,488 | $ | 109,595 | |||
Other | 306 | 251 | |||||
Total revenue | 109,794 | 109,846 | |||||
Operating expenses | |||||||
Property operating expenses | 28,922 | 28,464 | |||||
Real estate taxes | 11,976 | 10,774 | |||||
Net operating income | $ | 68,896 | $ | 70,608 | |||
Net operating income - percentage change over prior year | (2.4 | )% | |||||
Net operating income, excluding other items | $ | 69,568 | $ | 70,479 | |||
Net operating income, excluding other items - percentage change over prior year | (1.3 | )% | |||||
Net operating income | $ | 68,896 | $ | 70,608 | |||
Straight line rents & other | 46 | (1,872 | ) | ||||
Above/below market rent amortization | (235 | ) | (285 | ) | |||
Amortization of tenant inducements | 220 | 143 | |||||
Non-cash ground rent expense | 240 | 251 | |||||
Cash - Net operating income | $ | 69,167 | $ | 68,845 | |||
Cash - Net operating income - percentage change over prior year | 0.5 | % | |||||
Cash - Net operating income, excluding other items | $ | 69,599 | $ | 67,980 | |||
Cash - Net operating income, excluding other items - percentage change over prior year | 2.4 | % | |||||
Three Months Ended June 30, | |||||||
2024 | 2023 | ||||||
Net income (loss): | $ | 30,267 | $ | (12,737 | ) | ||
Add/(deduct): | |||||||
Interest and investment income | (1,512 | ) | (520 | ) | |||
Interest expense | 29,494 | 23,669 | |||||
Interest expense - amortization of deferred financing costs | 1,415 | 1,114 | |||||
Equity in loss of unconsolidated real estate ventures | 14,507 | 7,598 | |||||
Net gain on real estate venture transactions | (53,762 | ) | (181 | ) | |||
Gain on early extinguishment of debt | (941 | ) | — | ||||
Depreciation and amortization | 44,187 | 47,079 | |||||
General & administrative expenses | 8,941 | 9,360 | |||||
Income tax provision | 9 | 13 | |||||
Provision for impairment | 6,427 | 4,468 | |||||
Consolidated net operating income | 79,032 | 79,863 | |||||
Less: Net operating income of non-same store properties and elimination of non-property specific operations | (10,136 | ) | (9,255 | ) | |||
Same store net operating income | $ | 68,896 | $ | 70,608 | |||
BRANDYWINE REALTY TRUST SAME STORE OPERATIONS – SIX MONTHS (unaudited and in thousands) |
Of the 72 properties owned by the Company as of June 30, 2024, a total of 68 properties ("Same Store Properties") containing an aggregate of 12.4 million net rentable square feet were owned for the entire six months ended June 30, 2024 and 2023. As of June 30, 2024, two properties were recently completed, and two properties were in development/redevelopment. The Same Store Properties were
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
Revenue | |||||||
Rents | $ | 220,865 | $ | 222,185 | |||
Other | 576 | 536 | |||||
Total revenue | 221,441 | 222,721 | |||||
Operating expenses | |||||||
Property operating expenses | 58,246 | 58,959 | |||||
Real estate taxes | 24,025 | 24,181 | |||||
Net operating income | $ | 139,170 | $ | 139,581 | |||
Net operating income - percentage change over prior year | (0.3 | )% | |||||
Net operating income, excluding other items | $ | 139,805 | $ | 139,377 | |||
Net operating income, excluding other items - percentage change over prior year | 0.3 | % | |||||
Net operating income | $ | 139,170 | $ | 139,581 | |||
Straight line rents & other | (914 | ) | (4,733 | ) | |||
Above/below market rent amortization | (481 | ) | (571 | ) | |||
Amortization of tenant inducements | 370 | 281 | |||||
Non-cash ground rent expense | 483 | 504 | |||||
Cash - Net operating income | $ | 138,628 | $ | 135,062 | |||
Cash - Net operating income - percentage change over prior year | 2.6 | % | |||||
Cash - Net operating income, excluding other items | $ | 138,612 | $ | 133,497 | |||
Cash - Net operating income, excluding other items - percentage change over prior year | 3.8 | % | |||||
Six Months Ended June 30, | |||||||
2024 | 2023 | ||||||
Net income (loss): | $ | 13,853 | $ | (18,013 | ) | ||
Add/(deduct): | |||||||
Interest income | (1,933 | ) | (1,025 | ) | |||
Interest expense | 54,543 | 46,322 | |||||
Interest expense - amortization of deferred financing costs | 2,506 | 2,141 | |||||
Equity in loss of unconsolidated real estate ventures | 28,095 | 13,765 | |||||
Net gain on real estate venture transactions | (53,733 | ) | (181 | ) | |||
Net gain on sale of undepreciated real estate | — | (781 | ) | ||||
Gain on early extinguishment of debt | (941 | ) | — | ||||
Depreciation and amortization | 89,229 | 92,679 | |||||
General & administrative expenses | 20,045 | 18,842 | |||||
Income tax provision | 11 | 38 | |||||
Provision for impairment | 6,427 | 4,468 | |||||
Consolidated net operating income | 158,102 | 158,255 | |||||
Less: Net operating income of non-same store properties and elimination of non-property specific operations | (18,932 | ) | (18,674 | ) | |||
Same store net operating income | $ | 139,170 | $ | 139,581 | |||
Company / Investor Contact:
Tom Wirth
EVP & CFO
610-832-7434
tom.wirth@bdnreit.com
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