With shares in real estate investment trusts trending higher as expectations rise that interest rates will start coming down in 2024, you may be curious as to what are the best REITs for 2024.Yet while it’s been this macro factor driving the REIT run-up, you may consider REIT stocks that have more than just the specter of more favorable monetary policy on their side.For instance, there are many REITs that, for reason or another, currently trade at big discounts to their underlying net asset values. In addit ...

Brandywine Realty Trust (NYSE:BDN) Q3 2023 Earnings Conference Call October 25, 2023 9:00 AM ET Company Participants Jerry Sweeney - President & CEO George Johnstone - EVP, Operations Dan Palazzo - SVP & CAO Tom Wirth - EVP & CFO Conference Call Participants Steve Sakwa - Evercore ISI Camille Bonnel - Bank of America Anthony Paolone - J.P. Morgan Michael Griffin - Citi Michael Lewis - Truist Securities Dylan Burzinski - Green Street Advisors Upal Rana - KeyBanc Operator Good day and thank you for standing b ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 24, 2023 BRANDYWINE REALTY TRUST BRANDYWINE OPERATING PARTNERSHIP, L.P. (Exact name of registrant as specified in charter) Maryland (Brandywine Realty Trust) 001-9106 23-2413352 Delaware (Brandywine Operating Partnership, L.P.) 000-24407 23-2862640 (State or Other Jurisdiction of Incorp ...

Financial Data and Key Metrics Changes - The company reported a net loss of $12.9 million or $0.08 per share for Q2 2023, with FFO totaling $49.6 million or $0.29 per diluted share, which was $0.02 above consensus estimates [22] - The annualized core net debt to EBITDA ratio was 6.5 times, within the 2023 range, while the combined net debt to EBITDA was 7.6, slightly above guidance [23][30] - The company anticipates improvements in the net debt to EBITDA ratio with higher EBITDA and projected asset sales [24] Business Line Data and Key Metrics Changes - The company executed 568,000 square feet of leases in its wholly-owned portfolio, with a rental rate mark-to-market of 17.6% on a GAAP basis [3][4] - Tenant retention came in at 71%, above the full-year forecast range of 49% to 51% [5] - The speculative revenue range remains between $17 million to $19 million, with $16.1 million already achieved [5] Market Data and Key Metrics Changes - The company noted a 21% increase in total leasing portfolio from the previous quarter, now standing at 3.5 million square feet [7] - The occupancy rate is currently at 89.4%, with a lease rate of 91.1% based on 224,000 square feet of leases [4] - The company is experiencing a slowdown in leasing activity in Austin, with anticipated negative cash and GAAP mark-to-market [4] Company Strategy and Development Direction - The company aims to grow its Life Science platform to over 23% of its square footage based on owned or controlled land [16] - The development pipeline includes $302 million in wholly-owned projects, with 30% in life science and 70% in office [14] - The company plans to sell non-core land assets and recapitalize several joint ventures to reduce attributed debt by approximately $100 million by year-end [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the office sector but noted an increase in leasing activity and a strong pipeline of prospects [31] - The company is actively pursuing financing activities to improve liquidity and leverage metrics [32] - Management expressed optimism about the quality of their projects and the potential for lease executions despite macroeconomic uncertainties [34] Other Important Information - The company is assessing the impact of a lease termination by the State of Texas, which could reduce total forecasted rent by over $14 million [8] - The company has approximately $32 million of unrestricted cash on its balance sheet and no access to any balance on its $600 million unsecured line of credit at the end of the quarter [12][30] - The company is in advanced discussions for a construction loan on the 155 King of Prussia Road project, expected to close in August [12] Q&A Session Summary Question: Can you expand on the leasing pipeline and what is holding back decision-making? - Management noted that the development pipeline is nearing completion, which typically accelerates leasing activity, but macroeconomic concerns are causing hesitation among potential tenants [33][34] Question: Regarding the State of Texas lease termination, is it about the ability to cancel or the timing? - Management clarified that they are assessing whether the lease termination notice was valid and are working through the implications of this potential loss of revenue [37][38] Question: What are the retention dynamics during the quarter? - Management reported a strong retention rate of 71%, but noted two pending move-outs that could affect future retention metrics [40] Question: Is there lender appetite for construction loans at targeted LTV? - Management indicated that there is lender appetite for construction loans, particularly for well-structured deals with good tenant credit [41] Question: Can you provide more details on the Commerce Square refinancing? - Management expressed satisfaction with the refinancing, highlighting the asset's NOI growth potential and the positive trajectory of the property [44][45] Question: What is the outlook for the life science space? - Management noted that while demand for life science space is slower than last year, occupancy levels are higher compared to general office space, and they expect continued interest in their quality projects [53][54]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________________________________________________________________________ FORM 10-Q _____________________________________________________________________________________________ (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Excha ...

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited Q1 2023 consolidated financial statements showing a net loss of ($5.3) million [Financial Statements of Brandywine Realty Trust](index=5&type=section&id=Financial%20Statements%20of%20Brandywine%20Realty%20Trust) The company reported a Q1 2023 net loss of ($5.3) million and total assets of $3.99 billion Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$3,987,111** | **$3,874,505** | | Total real estate investments, net | $2,887,526 | $2,904,788 | | Cash and cash equivalents | $96,945 | $17,551 | | **Total Liabilities** | **$2,393,893** | **$2,241,171** | | Unsecured senior notes, net | $1,574,221 | $1,628,370 | | **Total Beneficiaries' Equity** | **$1,593,218** | **$1,633,334** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total Revenue | $129,227 | $127,505 | | Total Operating Expenses | $105,917 | $101,700 | | Operating Income | $24,091 | $26,702 | | Interest Expense | ($22,653) | ($15,742) | | **Net Income (Loss) Attributable to Common Shareholders** | **($5,329)** | **$5,945** | | **Diluted Income (Loss) per Common Share** | **($0.03)** | **$0.03** | Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $5,375 | $28,515 | | Net cash used in investing activities | ($45,023) | ($110,787) | | Net cash provided by financing activities | $134,332 | $94,130 | | **Increase in cash and cash equivalents** | **$94,684** | **$11,858** | [Financial Statements of Brandywine Operating Partnership, L.P.](index=12&type=section&id=Financial%20Statements%20of%20Brandywine%20Operating%20Partnership%2C%20L.P.) The partnership's financials mirror the Parent Company, reporting a Q1 2023 net loss of ($5.3) million Consolidated Statement of Operations Highlights (in thousands, except per unit data) | Account | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total Revenue | $129,227 | $127,505 | | Operating Income | $24,091 | $26,702 | | **Net Income (Loss) Attributable to Common Partnership Unitholders** | **($5,345)** | **$5,955** | | **Diluted Income (Loss) per Common Partnership Unit** | **($0.03)** | **$0.03** | - The assets and liabilities of the Operating Partnership are the same as the Parent Company, with the main difference in the equity section where the Parent Company's interest is recorded as **General Partnership Capital ($1.59 billion)**[6](index=6&type=chunk)[7](index=7&type=chunk)[30](index=30&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=21&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's portfolio of 77 properties, $2.13 billion in debt, and significant financing activities - As of March 31, 2023, the Company owned **77 properties** with approximately **13.6 million net rentable square feet**[43](index=43&type=chunk)[44](index=44&type=chunk) - The Company holds ownership interests in **eleven unconsolidated real estate ventures** with a net aggregate investment of **$545.5 million**[50](index=50&type=chunk) Debt Obligations Summary (in thousands) | Debt Type | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Secured Debt | $241,231 | $— | | Unsecured Debt | $1,892,069 | $1,965,038 | | **Total Debt Obligations** | **$2,133,300** | **$1,965,038** | - In Q1 2023, the company entered into a new **$245.0 million secured term loan** and a new **$70.0 million unsecured one-year term loan**[62](index=62&type=chunk)[63](index=63&type=chunk) - The Philadelphia CBD segment generated the highest Net Operating Income (NOI) at **$35.6 million** for Q1 2023[88](index=88&type=chunk)[90](index=90&type=chunk) - The company has provided various guarantees for its unconsolidated real estate ventures on construction loans[96](index=96&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a slight revenue increase, a 1.5% NOI decrease, and a net loss driven by higher interest expense [Overview and Operating Environment](index=35&type=section&id=Overview%20and%20Operating%20Environment) The company faces economic risks while managing a portfolio with 89.0% occupancy for its Core Properties Core Properties Operating Statistics | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Occupancy Percentage (end of period) | 89.0% | 89.3% | | Tenant Retention Rate | 45.2% | 55.9% | | Combined Rental Rate Change | +14.9% | +20.4% | - Key risks include tenant rollover, with **4.3% of aggregate annualized base rents expiring** in the remainder of 2023[104](index=104&type=chunk)[108](index=108&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Q1 2023 saw a 1.3% revenue increase but a 1.5% NOI decrease, resulting in a ($5.3) million net loss Comparison of Operations (in millions) | Account | Q1 2023 | Q1 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $129.2 | $127.5 | $1.7 | 1.3% | | Net Operating Income (NOI) | $78.4 | $79.6 | ($1.2) | (1.5)% | | Operating Income | $24.1 | $26.7 | ($2.6) | (9.7)% | | Interest Expense | ($22.7) | ($15.7) | ($7.0) | 44.6% | | Net Income (Loss) | ($5.3) | $6.1 | ($11.4) | (186.9)% | - The increase in property operating expenses was driven by higher property usage, maintenance, and energy rates[118](index=118&type=chunk) - Interest expense rose significantly due to the issuance of **$350.0 million in 7.75% notes** and new term loans at higher rates[120](index=120&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with $96.9 million in cash and $582.6 million available credit - Principal liquidity needs include recurring expenses, capital expenditures, debt service, and development costs[122](index=122&type=chunk) - As of March 31, 2023, the company had **$96.9 million of cash** and cash equivalents and **$582.6 million of available borrowings**[131](index=131&type=chunk) Cash Flow Summary (in thousands) | Activity | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Operating | $5,375 | $28,515 | ($23,140) | | Investing | ($45,023) | ($110,787) | $65,764 | | Financing | $134,332 | $94,130 | $40,202 | [Capitalization and FFO](index=46&type=section&id=Capitalization%20and%20FFO) Total debt reached $2.14 billion, with fixed-rate debt increasing to 93.1% and Q1 FFO at $50.8 million Debt Capitalization Summary | Metric | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Debt (in thousands) | $2,143,610 | $1,971,411 | | Fixed Rate Debt % | 93.1% | 78.8% | | Variable Rate Debt % | 6.9% | 21.2% | | Weighted-Average Maturity | 4.7 years | 4.8 years | Funds from Operations (FFO) Reconciliation (in thousands) | Line Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net income (loss) attributable to common unitholders | ($5,345) | $5,955 | | Real property depreciation and amortization | $38,630 | $36,162 | | Company's share of unconsolidated ventures D&A | $11,564 | $11,295 | | **FFO available to common share and unit holders** | **$50,831** | **$60,311** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rates, which is managed through derivative instruments like swaps - The primary market risk exposure is interest rate risk, impacting the cost of funds and the value of financial instruments[147](index=147&type=chunk) - A **100-basis point change** in the discount rate would change the total fair value of the company's unsecured notes by approximately **$12.5 million**[148](index=148&type=chunk) - The company utilizes derivative instruments to manage interest rate risk, including swapping its **$250.0 million unsecured term loan** to a fixed rate[148](index=148&type=chunk)[149](index=149&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023 - Both Brandywine Realty Trust and Brandywine Operating Partnership concluded that their disclosure controls and procedures were effective as of March 31, 2023[150](index=150&type=chunk)[151](index=151&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected the company's internal controls[150](index=150&type=chunk)[151](index=151&type=chunk) PART II — OTHER INFORMATION [Other Information (Items 1-6)](index=50&type=section&id=Items%201-6) This section confirms no new legal proceedings, risk factor changes, or share repurchases in Q1 2023 - There are no legal proceedings to report (Item 1) and no material changes to risk factors from the 2022 Form 10-K (Item 1A)[153](index=153&type=chunk) - No common shares were repurchased in Q1 2023, and **$82.9 million remained available** for repurchases under the existing program[153](index=153&type=chunk) - There were no defaults upon senior securities (Item 3) or other material information to report (Item 5)[153](index=153&type=chunk)

Brandywine Realty Trust (NYSE:BDN) Q1 2023 Earnings Conference Call April 20, 2023 9:00 AM ET Company Participants Gerard Sweeney - President and Chief Executive Officer Thomas Wirth - Chief Financial Officer George Johnstone - Executive Vice President, Operations Conference Call Participants Anthony Paolone - JPMorgan Chase & Co. Nick Joseph - Citigroup Inc. Michael Lewis - Truist Securities Omotayo Okusanya - Credit Suisse Steve Sakwa - Evercore Inc. Operator Good day and thank you for standing by. Welcom ...

Financial Risks - Tenants experiencing financial difficulties, including bankruptcy, may adversely affect cash flow and distributions to shareholders [49] - Increased operating expenses, such as insurance and real estate taxes, could reduce profitability if not fully passed on to tenants [52] - Development projects may face higher costs due to rising interest rates and inflation, potentially leading to lower than projected rental rates [53] - The inability to renew leases or re-lease space could adversely impact distributions to shareholders [61] - Competition from other real estate developers may reduce suitable investment opportunities and increase vacancies [61] - The company may face challenges in managing strategic alliances, which could lead to increased costs and project delays [57] - Investments in subordinated debt or mezzanine loans expose the company to greater risk of loss [64] - The company’s degree of leverage may limit financing options and increase vulnerability to economic downturns, affecting distributions to shareholders [109] - The terms of the company’s indebtedness include covenants that could restrict financial flexibility and impact economic performance if not met [110] - The company may face adverse consequences from federal, state, and local tax audits, which could affect operational results [99] Regulatory and Taxation Risks - Acquired properties may expose the company to unknown liabilities, including environmental contamination and claims from former owners [60] - Property taxes may increase due to changes in tax rates or reassessments, adversely impacting cash flows and the ability to pay dividends [68] - Changes in tax rates and regulatory requirements could negatively affect cash flow and operational results, as increases in taxes are generally not passed through to tenants [69] - Legislative or regulatory tax changes related to REITs could materially and adversely affect the company's business [87] - The company must distribute at least 90% of its REIT taxable income to maintain its REIT status, which may require borrowing under unfavorable conditions [81] - If the company fails to qualify as a REIT, it would be subject to federal income tax, significantly reducing cash available for distribution to shareholders [78] - The company may face adverse consequences if a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable [88] Environmental and Climate Risks - Compliance with environmental regulations may incur substantial costs, potentially affecting the ability to sell or rent properties [71] - Potential liability for environmental contamination could result in substantial costs, impacting financial condition and operational results [71] - The company is heavily investing in Qualified Opportunity Zones and Keystone Opportunity Zones due to related tax benefits, which may impact property values and cash flow if incentives expire or compliance fails [91] - The company faces risks associated with the physical effects of climate change, particularly for properties located along the East Coast, which could lead to increased costs and declining demand for office space [96] Operational and Management Risks - The company is dependent on key personnel, including the President and CEO, which could affect relationships with lenders and tenants if these individuals leave [97] - The ability to make distributions to shareholders is contingent on operational performance, capital expenditures, and debt interest rates, with adverse changes potentially impacting cash flow [98] - The company may incur impairment charges based on quarterly evaluations of real estate portfolios, which could adversely affect results of operations [105] - Rising interest rates could limit the ability to refinance existing debt and increase future interest expenses, impacting cash flow and capital recycling [106] - The company has entered into agreements that may hinder actions to repay or refinance guaranteed indebtedness [67] Market and Investment Risks - The market value of the company’s securities is influenced by interest rates and investor confidence, with potential declines if earnings or distributions fall short of expectations [102] - A downgrade of unsecured debt by Moody's or S&P could lead to higher borrowing costs and a decline in market prices of common shares and debt securities [112] - The transition from LIBOR to SOFR as an interest rate benchmark may introduce uncertainties and could negatively impact operating results [112] - The full effects of the transition to SOFR remain uncertain, which could adversely affect variable rate debt [112] Cybersecurity and Insurance Risks - Data security breaches could disrupt operations, result in misstated financial reports, and damage the company's reputation among clients and investors [114] - The company maintains insurance coverage for cyber risks, but it may be insufficient to cover all potential losses [116] - The risk of cyber-attacks has increased, and the company may not be able to implement adequate security measures to prevent breaches [114] - Certain types of losses, such as those from acts of war or biological hazards, are generally not insured, posing a risk to capital investment and future revenue [119] - The company uses a combination of insurance products for risk mitigation, but future claims could materially impact financial results [120] - The company is exposed to potential losses if insurance providers fail to pay claims due to insolvency or bankruptcy [119] Miscellaneous Risks - Terrorist attacks or armed conflicts could increase operating costs and insurance premiums, negatively impacting profitability and cash flow [117]

Financial Data and Key Metrics Changes - The company reported fourth quarter FFO of $0.32 per share, in line with consensus, and full year FFO of $1.38 per share, exceeding consensus estimates by $0.01 per share [4] - The net debt to EBITDA ratio decreased to 7.0x from 7.2x in the previous quarter, while core net debt to EBITDA ended the year at 6.2x [6][18] - The fourth quarter net income totaled $29.5 million or $0.17 per diluted share, with interest expense totaling $20.5 million, which was $2 million below guidance [16][18] Business Line Data and Key Metrics Changes - The company executed 226,000 square feet of leases in Q4 2022, including 142,000 square feet of new leasing activity, and leased 1.8 million square feet for the full year [4][5] - The rental rate mark-to-market was 21% on a GAAP basis and 12.5% on a cash basis for Q4 2022, with a full year mark-to-market just shy of 19% on a GAAP basis [4][5] - The company experienced negative absorption of 123,000 square feet in Q4, primarily due to a tenant default in Austin [5] Market Data and Key Metrics Changes - The occupancy rate at the end of Q4 was 89.8%, with a leasing rate of 91%, both below targets [5] - The DC portfolio continues to underperform, while the Philadelphia suburbs and Austin portfolios, which comprise about 93% of NOI, were 91.7% occupied and 92.7% leased [5] - The leasing pipeline consists of 3 million square feet, with 1.2 million in the operating portfolio and 1.8 million in development projects [5] Company Strategy and Development Direction - The company plans to focus on a business plan for 2023 that includes an FFO range of $1.12 to $1.20 per share, with a midpoint of $1.16 [8] - The strategy includes reducing forward rollover exposure through 2024 to an average of 6.2% and through 2026 to an average of 7% [5] - The company aims to grow its life science platform to 21% of its square footage, with a current development pipeline of $1.2 billion [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth characteristics of Austin despite recent challenges, noting a shift in strategy towards a multi-tenant approach [25][27] - The company anticipates that occupancy levels will average around 90% for 2023, driven by strong performance in Pennsylvania and CBD Philadelphia [25] - Management acknowledged that the dividend payout ratio for 2023 will be tight but believes it is adequately covered by baseline cash flow [43][44] Other Important Information - The company completed a five-year $350 million unsecured bond offering at a 7.5% coupon and a five-year $245 million secured financing at an 8.75% coupon [6][18] - The company plans to sell between $100 million and $125 million of properties in the second half of 2023 [11][15] - The company has a strong liquidity position with full availability on its $600 million unsecured line of credit and approximately $30 million of unrestricted cash on hand [7] Q&A Session Summary Question: Outlook for lease and core occupancy - Management acknowledged that Q4 occupancy came up short due to a tenant default in Austin and anticipated that occupancy levels would average around 90% for 2023, driven by strong performance in Pennsylvania and CBD Philadelphia [25] Question: Financing environment for joint ventures - Management indicated that while traditional lenders are pulling back, they are exploring other financing sources, including securitized loans and debt funds [28][29] Question: Life science demand for 250 King of Prussia - Management expressed confidence in demand for the 250 King of Prussia project, noting strong life science demand drivers in both University City and suburban locations [34][38] Question: Tenant default in Austin - Management confirmed a tenant default in Austin but stated that there are currently no other tenants of concern in the portfolio [39][41] Question: Dividend coverage and future outlook - Management acknowledged that the dividend payout ratio for 2023 will be tight but believes it is adequately covered by baseline cash flow and plans to monitor it closely throughout the year [43][44]