[Overview and Highlights](index=1&type=section&id=Overview%20and%20Highlights) [Management Comments](index=1&type=section&id=Management%20Comments) Management achieved 98% of speculative revenue targets, enhanced liquidity, and increased asset sales, but revised 2025 FFO guidance due to land sale timing - Achieved over **98%** of the speculative revenue target for the 2025 business plan[3](index=3&type=chunk) - Leasing activity in the second quarter surpassed the first quarter by **35%**, and development project tour activity increased by **66%** over Q1[3](index=3&type=chunk) - Asset sales target was increased from a midpoint of **$50 million** to **$72.7 million**, reflecting assets already sold or under firm agreement[3](index=3&type=chunk) - Liquidity remains strong with **$123 million** in cash and no outstanding balance on the **$600 million** unsecured line of credit after a **$150 million** bond issuance[3](index=3&type=chunk) - Revised 2025 FFO guidance to a range of **$0.60 to $0.66 per share**, primarily due to the removal of land sales gains from the business plan[3](index=3&type=chunk) [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) Q2 2025 reported a **$(89.0) million net loss** due to a **$63.4 million impairment**, with FFO at **$26.1 million**, and the core portfolio **91.1% leased** Q2 2025 Key Financial and Operating Metrics | Metric | Value | Notes | | :--- | :--- | :--- | | **Net Loss** | $(89.0) million | Includes $63.4M non-cash impairment charge | | **Net Loss per Share** | $(0.51) | Includes $0.37 per share from impairment | | **Funds from Operations (FFO)** | $26.1 million | - | | **FFO per Share** | $0.15 | - | | **Core Portfolio Occupied** | 88.6% | - | | **Core Portfolio Leased** | 91.1% | - | | **New/Renewal Leases Signed** | 234,000 sq. ft. | Wholly-owned portfolio | | **Total Leases Signed (incl. JVs)** | 461,000 sq. ft. | Including unconsolidated joint ventures | [Financial Performance](index=3&type=section&id=Financial%20Performance) [Results for the Three and Six Month Periods Ended June 30, 2025](index=3&type=section&id=Results%20for%20the%20Three%20and%20Six%20Month%20Periods%20Ended%20June%2030%2C%202025) Q2 2025 reported a **$(89.0) million net loss** and **$26.1 million FFO**, a decline from Q2 2024, with H1 2025 also showing a **$(116.4) million net loss** and **$50.8 million FFO** Q2 Financial Performance Comparison (2025 vs. 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Income (Loss)** | $(89.0)M | $29.9M | | **Diluted EPS** | $(0.51) | $0.17 | | **FFO** | $26.1M | $38.0M | | **FFO per Diluted Share** | $0.15 | $0.22 | Six-Month Financial Performance Comparison (2025 vs. 2024) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Net Income (Loss)** | $(116.4)M | $13.2M | | **Diluted EPS** | $(0.67) | $0.08 | | **FFO** | $50.8M | $79.2M | | **FFO per Diluted Share** | $0.28 | $0.45 | - The Q2 2025 FFO payout ratio was **100%** (**$0.15** dividend / **$0.15** FFO per share), while the payout ratio for the first half of 2025 was **107.1%** (**$0.30** dividend / **$0.28** FFO per share)[9](index=9&type=chunk)[11](index=11&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets decreased to **$3.39 billion**, liabilities increased to **$2.51 billion**, and a significant net loss for H1 2025, driven by impairment and lower revenue [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to **$3.39 billion**, liabilities increased to **$2.51 billion**, and beneficiaries' equity declined to **$885.2 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,394,339** | **$3,492,213** | | Cash and cash equivalents | $122,645 | $90,229 | | Assets held for sale, net | $53,886 | $— | | **Total Liabilities** | **$2,509,097** | **$2,447,626** | | Unsecured senior notes, net | $1,776,851 | $1,618,527 | | **Total Beneficiaries' Equity** | **$885,242** | **$1,044,587** | [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues were **$120.6 million**, operating expenses rose to **$161.8 million** due to impairment, resulting in a **$(89.0) million net loss** Statement of Operations - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenue** | **$120,571** | **$125,346** | | **Total Operating Expenses** | **$161,812** | **$105,869** | | Provision for impairment | $63,369 | $6,427 | | **Operating Income (Loss)** | **$(41,327)** | **$19,477** | | **Net Income (Loss) Attributable to Common Shareholders** | **$(88,991)** | **$29,896** | | **Diluted EPS** | **$(0.51)** | **$0.17** | [Funds From Operations (FFO)](index=11&type=section&id=Funds%20From%20Operations%20(FFO)) Q2 2025 net loss of **$(89.0) million** reconciled to FFO of **$26.1 million**, with FFO per diluted share at **$0.15**, resulting in a **100% payout ratio** FFO Reconciliation - Three Months Ended June 30 (in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net income (loss) attributable to common shareholders | $(88,991) | $29,896 | | Add: Provision for impairment | $63,369 | $6,427 | | Add: Real property depreciation & amortization | $38,363 | $38,368 | | Add: Company's share of unconsolidated ventures D&A | $9,345 | $12,294 | | **Funds from operations available to common share and unit holders (FFO)** | **$26,112** | **$38,028** | | **FFO per share - fully diluted** | **$0.15** | **$0.22** | FFO Payout Ratio | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Q2** | 100% | 68% | | **H1** | 107% | 67% | [Operational Performance](index=4&type=section&id=Operational%20Performance) [Portfolio and Leasing Activity](index=4&type=section&id=Portfolio%20and%20Leasing%20Activity) Q2 saw **234,000 sq ft leased**, an **82% tenant retention ratio**, and **2.1% rental rate growth** (accrual), with the core portfolio **88.6% occupied** and **91.1% leased** - Leased approximately **234,000 square feet** and commenced occupancy on **303,000 square feet** in Q2 2025[14](index=14&type=chunk) - The tenant retention ratio for the core portfolio was **82%** in the second quarter[15](index=15&type=chunk) Q2 2025 Leasing Metrics | Metric | Value | | :--- | :--- | | **Rental Rate Growth (Accrual)** | +2.1% | | **Rental Rate Growth (Cash)** | -4.7% | | **Tenant Retention Ratio** | 82% | | **Core Portfolio Occupancy** | 88.6% | | **Core Portfolio Leased** | 91.1% | [Same Store Operations](index=12&type=section&id=Same%20Store%20Operations) Q2 2025 Same Store NOI increased by **1.0%** (accrual) and **6.3%** (cash), while H1 saw a **0.4% decrease** (accrual) but **4.7% growth** (cash), with occupancy at **88.5%** Q2 Same Store NOI Growth (YoY) | Basis | Growth Rate (Excluding other items) | | :--- | :--- | | **Accrual** | +1.0% | | **Cash** | +6.3% | Six-Month Same Store NOI Growth (YoY) | Basis | Growth Rate (Excluding other items) | | :--- | :--- | | **Accrual** | -0.4% | | **Cash** | +4.7% | - The Same Store portfolio of 59 properties was **88.5% occupied** as of June 30, 2025, compared to **87.1%** on June 30, 2024[41](index=41&type=chunk)[42](index=42&type=chunk) [Capital Activities and Outlook](index=3&type=section&id=Capital%20Activities%20and%20Outlook) [Recent Transaction Activity](index=3&type=section&id=Recent%20Transaction%20Activity) The company sold an Austin property for **$17.6 million**, has another under agreement for **$55.1 million**, issued **$150 million** in notes, and maintains strong liquidity - Sold a wholly-owned office property in Austin, Texas for **$17.6 million** in June 2025[12](index=12&type=chunk) - An additional office property in Austin is under agreement to be sold for **$55.1 million** and is classified as held for sale[12](index=12&type=chunk) - Issued **$150.0 million** of 8.875% guaranteed notes due 2029, raising gross proceeds of **$159 million**, used to repay the line of credit and a **$43.6 million** construction loan[12](index=12&type=chunk) - As of June 30, 2025, the company had no outstanding balance on its **$600.0 million** unsecured line of credit and held **$122.6 million** in cash[12](index=12&type=chunk) [Dividend Distributions](index=4&type=section&id=Dividend%20Distributions) The Board declared a quarterly dividend of **$0.15 per common share**, paid on July 17, 2025, maintaining the previous quarter's level - A quarterly dividend of **$0.15 per common share** was declared on May 21, 2025, and paid on July 17, 2025[17](index=17&type=chunk) [2025 Earnings and FFO Guidance](index=4&type=section&id=2025%20Earnings%20and%20FFO%20Guidance) The company adjusted its 2025 full-year guidance, forecasting a net loss per share of **$(0.96) - $(0.90)** and FFO of **$0.60 - $0.66 per diluted share**, with core occupancy at **88-89%** Revised 2025 Full-Year Guidance | Metric | Previous Guidance | Revised Guidance | | :--- | :--- | :--- | | **Loss per Diluted Share** | $(0.56) - $(0.46) | $(0.96) - $(0.90) | | **FFO per Diluted Share** | $0.61 - $0.71 | $0.60 - $0.66 | 2025 Key Operating Assumptions | Assumption | Range | | :--- | :--- | | **Year-end Core Occupancy** | 88 - 89% | | **Year-end Core Leased** | 89 - 90% | | **Same Store (accrual) NOI** | 0 - 1% | | **Same Store (cash) NOI** | 2 - 3% | | **Property Sales Activity** | $72.7 million | [Supplemental Information](index=6&type=section&id=Supplemental%20Information) [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) The Q2 2025 conference call is scheduled for July 24, 2025, and the Q3 2025 earnings release and call are set for October 22-23, 2025 - The Q2 2025 conference call is scheduled for July 24, 2025, at 9:00 a.m. Eastern Time[22](index=22&type=chunk) - The Q3 2025 earnings release is expected on October 22, 2025, with the conference call on October 23, 2025[23](index=23&type=chunk) [Non-GAAP Financial Measures and Definitions](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Definitions) This section defines key non-GAAP financial measures like FFO, NOI, Same Store Properties, Core Portfolio, and Speculative Revenue, crucial for understanding operating performance - **Funds from Operations (FFO):** Defined by NAREIT as net income excluding gains/losses on property sales, impairment losses, and real estate depreciation, providing a measure of operating performance[28](index=28&type=chunk)[29](index=29&type=chunk) - **Net Operating Income (NOI):** A measure of property-level performance that excludes corporate G&A, depreciation, and interest expense to show unlevered operating results[30](index=30&type=chunk) - **Same Store Properties:** Includes properties owned and in-service for the entirety of both comparison periods to allow for meaningful analysis of NOI changes[31](index=31&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements, including 2025 guidance, subject to significant business, economic, and competitive risks that may cause actual results to differ materially - The report contains forward-looking statements, including 2025 guidance, which are subject to risks and uncertainties that could cause actual results to differ materially[26](index=26&type=chunk) - Key risks include reduced demand for office space, capital market volatility, tenant credit risk, inflation, and interest rate fluctuations[26](index=26&type=chunk)

Core Insights - Brandywine Realty Trust has adjusted its 2025 guidance, revising the FFO range to $0.60 to $0.66 per diluted share, with a midpoint of $0.63, which remains above consensus estimates [2][17] - The company reported a net loss of $89.0 million, or $(0.51) per diluted share, for the second quarter of 2025, compared to a net income of $29.9 million, or $0.17 per diluted share, in the same period of 2024 [5][7] - The average annual lease expiration rate through 2026 is only 5.1%, indicating strong tenant retention and demand [2] Financial Results - Funds from Operations (FFO) for the second quarter of 2025 totaled $26.1 million, or $0.15 per diluted share, down from $38.0 million, or $0.22 per diluted share, in the second quarter of 2024 [8][10] - The company’s same-store net operating income (NOI) increased by 1.0% on an accrual basis and 6.3% on a cash basis [11][44] - The core portfolio was 88.6% occupied and 91.1% leased as of June 30, 2025, reflecting an increase in leasing activity [14][2] Leasing and Occupancy - In the second quarter of 2025, the company signed new and renewal leases totaling 234,000 square feet, with a tenant retention ratio of 82% [12][13] - The rental rate mark-to-market increased by 2.1% on an accrual basis, while it decreased by 4.7% on a cash basis [5][13] - The company has a pipeline of development projects with tour activity up 66% compared to the first quarter [2] Capital and Liquidity - The company has increased its sales target from $50 million to $72.7 million, with $17.6 million already completed and $55.1 million under agreement [5][19] - As of June 30, 2025, Brandywine Realty Trust had $123 million in cash on hand and no outstanding balance on its $600 million unsecured line of credit [2][16] - The company repaid a construction loan of $43.6 million using proceeds from a $150 million bond issuance [16][2] Market Position and Strategy - Brandywine Realty Trust focuses on urban, town center, and transit-oriented properties, with a portfolio comprising 122 properties and 19.0 million square feet as of June 30, 2025 [21] - The company aims to shape and inspire communities through its real estate expertise and relationships [21]

Core Viewpoint - The article emphasizes a value investing approach with a focus on long-term horizons and an owner's mindset, avoiding short-selling recommendations [1]. Group 1 - The analysis is based on value investing principles, which prioritize the intrinsic value of securities over short-term market fluctuations [1]. - The author does not engage in short-selling or provide sell recommendations, indicating a commitment to long-term investment strategies [1]. - The article reflects the author's independent research and opinions, without any external compensation influencing the content [2]. Group 2 - There is a clear disclosure that the author holds no positions in the mentioned companies and has no plans to initiate any positions in the near future [2]. - The article does not provide specific investment advice or recommendations, aligning with a broader perspective on investment suitability [3]. - The content is authored by an individual who may not be licensed or certified, highlighting the importance of independent analysis in investment decisions [3].

Core Insights - The article discusses the resurgence of office REITs as major cities begin to recover from the pandemic and return to office mandates, highlighting potential investment opportunities in this sector [3][4][5]. Group 1: Market Trends - Major cities like Boston, New York, and San Francisco are experiencing a return to pre-pandemic commuting patterns, which is positively impacting office REITs [3][4]. - Office REITs, previously struggling due to COVID-19, are now seeing renewed interest as companies mandate employees to return to the office [5]. Group 2: Specific REIT Analysis - Alexander's (ALX) has a yield of 8.2% but faces high single-tenant risk, with Bloomberg accounting for nearly 60% of its rental revenue [7][8][9]. - Easterly Government Properties (DEA) has a yield of 8.1% but recently cut its dividend by about one-third, raising concerns about its financial stability [12][14]. - Highwoods Properties (HIW) offers a safer investment with a 6.4% yield and a low FFO payout ratio of 60%, indicating strong dividend coverage [15][16]. - American Assets Trust (AAT) has a yield of 6.7% and has resumed dividend growth after a cut during COVID, with dividends representing 70% of projected 2025 FFO [17][18]. - Brandywine Realty Trust (BDN) has a high yield of 14.4% but is facing challenges due to development projects and declining FFO, raising concerns about its dividend sustainability [19][21].

Core Viewpoint - Brandywine Realty Trust has successfully closed a public offering of $150 million in 8.875% guaranteed notes due 2029, with a re-offer yield of 7.039% [1] Group 1: Offering Details - The offering was part of the same series as the previously issued $400 million of 8.875% guaranteed notes due 2029, originally issued on April 12, 2024 [1] - The net proceeds from the offering will be used to repay outstanding borrowings under a $600 million unsecured revolving credit facility, fund a partial repayment of secured debt, and for general corporate purposes [2] Group 2: Company Overview - Brandywine Realty Trust is one of the largest publicly traded full-service integrated real estate companies in the U.S., focusing on the Philadelphia and Austin markets [4] - As of March 31, 2025, the company owns, develops, leases, and manages a portfolio comprising 125 properties and 19.4 million square feet [4]

Core Viewpoint - Brandywine Realty Trust announced a public offering of $150 million in 8.875% guaranteed notes due 2029, with interest payments starting on October 12, 2025 [1][2]. Offering Details - The notes are priced at 106.000% of their principal amount, yielding 7.039% upon re-offer [2]. - The offering is expected to close on June 27, 2025, subject to customary closing conditions [2]. Use of Proceeds - The net proceeds from the offering are anticipated to be approximately $148 million, which will be used to repay outstanding borrowings under a $600 million unsecured revolving credit facility, fund a partial repayment of secured debt, and for general corporate purposes [3]. Company Overview - Brandywine Realty Trust is a major publicly traded real estate investment trust (REIT) focused on the Philadelphia and Austin markets, managing a portfolio of 125 properties totaling 19.4 million square feet as of March 31, 2025 [7].

Summary of Brandywine Realty Trust (BDN) Conference Call Company Overview - Brandywine Realty Trust (ticker: BDN) is an office REIT headquartered in Philadelphia with an equity market cap of approximately $750 million [2][4] - The company generates about 80% of its Net Operating Income (NOI) from the Greater Philadelphia area and 20% from Austin, Texas, with minor contributions from Metro DC, New Jersey, and Maryland [5] Market Position and Strategy - Brandywine has a portfolio of approximately 12 million square feet, focusing on high-quality office spaces [5] - The company is diversifying its product mix, including significant mixed-use developments like Schuylkill Yards in Philadelphia (5 million square feet) and Uptown ATX in Austin (potentially 17 million square feet) [6][7] - Current development pipeline is valued at nearly $1 billion, with a mix of 21% office, 42% residential, and 27% life science [8] Office Leasing Demand - The office leasing demand is recovering, with 96% of the CBD Philadelphia office portfolio leased [12] - High-quality office spaces are experiencing increased demand, with 60-80% of new leasing activity coming from tenants upgrading to better quality spaces [13] - The overall vacancy rate in Philadelphia is between 18-20%, with 50% of that vacancy concentrated in just 10 buildings [13][15] Financial Health and Capital Management - Brandywine has approximately $600 million in liquidity and no bond maturities until late 2027, positioning the company to capitalize on distressed opportunities [9] - The company sold $300 million worth of properties last year and targets $50 million in sales for the current year [8][42] - The balance sheet is under pressure due to rising interest costs, with interest carry costs increasing from $75 million in 2022 to $135 million currently [47] Life Science Sector - The company aims to increase its life science exposure from 8% to 25%, citing long-term demand drivers despite recent challenges in the sector [29] - Significant NIH funding cuts and a pullback in biotech capital raising are impacting the life science market [31][32] - Despite these challenges, there is optimism regarding future demand driven by major pharmaceutical companies and ongoing scientific advancements [34][35] Dividend Policy - The dividend policy is currently under review, with expectations to return to a fully covered dividend by the end of 2026 [53][54] - The company has room to adjust the dividend downwards if necessary, but management believes they can grow back to the current level [54] Market Outlook - The company anticipates that the pricing of high-quality office products will increase over the next few years as investor appetite and financing markets improve [44] - There is a focus on leasing up existing developments and stabilizing the portfolio before pursuing new developments [26][28] Conclusion - Brandywine Realty Trust is strategically positioned to benefit from the recovery in office leasing demand, particularly in high-quality spaces, while navigating challenges in the life science sector and managing its balance sheet effectively. The company remains optimistic about future growth and market conditions.

PHILADELPHIA, May 30, 2025 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (NYSE:BDN) announced today that Jerry Sweeney, President & Chief Executive Officer; Tom Wirth, Executive Vice President & CFO; and Dan Palazzo, SVP & Chief Accounting Officer, will present at Nareit’s REITweek 2025 Investor Conference. The analyst-led roundtable presentation is scheduled for Wednesday, June 4, 2025 at 2:00 p.m. Eastern Time and is expected to last approximately 30 minutes. Brandywine’s presentation can be accessed live ...

Core Viewpoint - Brandywine Realty Trust has declared a quarterly cash dividend of $0.15 per common share, reflecting a commitment to returning value to shareholders [1] Company Overview - Brandywine Realty Trust is a major publicly traded real estate investment trust (REIT) focused on urban, town center, and transit-oriented properties, primarily in Philadelphia, PA, and Austin, TX [3] - As of March 31, 2025, the company owns, develops, leases, and manages a portfolio of 125 properties totaling 19.4 million square feet [3] Financial Information - The declared quarterly dividend translates to an annual rate of $0.60 per share, payable on July 17, 2025, to shareholders of record as of July 2, 2025 [1] - The second quarter earnings will be released after market close on July 23, 2025, followed by a conference call on July 24, 2025, at 9:00 a.m. Eastern Time [2]

Occupancy and Leasing - As of March 31, 2025, occupancy at Core Properties was 86.6%, down from 87.7% in the same period of 2024[148] - The tenant retention rate decreased to 55.4% in Q1 2025 from 67.3% in Q1 2024[148] - New leases and expansions commenced totaled 94,934 square feet, compared to 129,325 square feet in Q1 2024[148] - The average annual rent per square foot decreased to $36.68 from $44.21 year-over-year[148] - The percentage change in rental rates for new and expansion leases was 6.8%, down from 16.8% in the previous year[148] - Total net rentable square feet owned decreased to 11,930,549 from 12,698,115 year-over-year[148] - Same Store Occupancy remained stable at 86.0% for both Q1 2025 and Q1 2024[168] - Approximately 96% of the company's leases contain annual rent escalations, which are generally fixed between 2.0% to 3.0% per lease year[193] Financial Performance - Total revenue for Q1 2025 was $121.5 million, a decrease of 4.0% compared to $126.5 million in Q1 2024[168] - Net operating income (NOI) for Q1 2025 was $74.0 million, down 6.4% from $79.1 million in Q1 2024[168] - General and administrative expenses increased by 57.7% to $17.5 million in Q1 2025, compared to $11.1 million in Q1 2024[168] - Interest expense rose by 27.1% to $31.9 million in Q1 2025, up from $25.1 million in Q1 2024[168] - The company reported a net loss of $27.1 million in Q1 2025, a 65.2% increase from a net loss of $16.4 million in Q1 2024[168] - The company recognized a net gain of $3.1 million from the disposition of real estate in Q1 2025[171] - Funds from operations (FFO) for the three months ended March 31, 2025, were $24,663 thousand, down from $41,181 thousand in 2024, reflecting a decrease of 40%[198] - The company's operating margins decreased to 61.9% for the three months ended March 31, 2025, from 63.5% in the same period of 2024[194] Debt and Liquidity - The company issued $400 million in 8.875% Guaranteed Notes due 2029 in April 2024, with net proceeds of approximately $391.8 million[176] - The company expects to satisfy liquidity needs through cash flows from operations, financing activities, and real estate sales[175] - The company is in compliance with all debt covenants and requirement obligations as of March 31, 2025[175] - As of March 31, 2025, the Parent Company's unsecured debt obligations amounted to $1,943.6 million, while secured debt obligations were $283.4 million[181] - The total debt as of March 31, 2025, was $2,239.983 million, with 95.4% being fixed-rate debt[188] - The weighted-average interest rate for total debt was 6.2% as of March 31, 2025[188] - The company had $29.4 million in cash and cash equivalents and $495.8 million available under its unsecured credit facility as of March 31, 2025[183] - The company experienced a decrease in cash flows from operating activities by $17,496 thousand compared to the previous year[186] - The Operating Partnership is in compliance with all financial covenants as of March 31, 2025, including a leverage ratio not exceeding 60%[190] Interest Rate Risk - The total outstanding principal balance of variable rate debt was approximately $432.0 million, with a fair value of approximately $407.8 million[204] - A 100-basis point increase in market interest rates would decrease the fair value of the variable rate debt by approximately $11.2 million[204] - The fair value of unsecured notes was $1,524.7 million, with a 100-basis point change equating to a change of approximately $15.5 million[203] - If market rates increase by 100 basis points, the fair value of secured fixed rate debt would increase by approximately $6.2 million[202] - If market rates decrease by 100 basis points, the fair value of secured fixed rate debt would decrease by approximately $6.4 million[202] - The company has not experienced significant credit losses, but rising interest rates could lead to increased defaults and losses[199] - The company uses derivative instruments to manage interest rate risk exposures, not for speculative purposes[204] Internal Controls and Compliance - The evaluation of disclosure controls and procedures concluded that they are effective as of the end of the reporting period[210] - There were no changes in internal control over financial reporting that materially affected the company during the reporting period[210] Development Projects - Development projects include 3025 JFK Boulevard with estimated costs of $320,111,000 and completion expected in Q4 2023[160] - Approximately 2.6% of total square footage is scheduled to expire without penalty during the remainder of 2025[156] - The accrued rent receivable allowance was $0.9 million, representing 0.5% of the accrued rent receivable balance as of March 31, 2025[157]