Financial Performance - Net loss attributable to common shareholders was $27.4 million, or $0.16 per diluted share, compared to a net loss of $16.7 million, or $0.10 per diluted share in Q1 2024[7]. - Funds from operations (FFO) available to common shareholders for the first quarter of 2025 was $24,663, a decline of 40.0% from $41,181 in the first quarter of 2024[34]. - Basic loss per common share for the first quarter of 2025 was $(0.16), compared to $(0.10) in the first quarter of 2024[32]. - The company reported a net loss attributable to common shareholders of $(27,404) for the first quarter of 2025, compared to $(16,704) in the first quarter of 2024[34]. - The Company reported a net loss of $27.056 million in Q1 2025, compared to a net loss of $16.414 million in Q1 2024[38]. Revenue and Income - Total revenue for the first quarter of 2025 was $121,516, down 3.8% from $126,484 in the first quarter of 2024[32]. - Total revenue for Same Store Properties increased to $107.834 million in Q1 2025 from $107.139 million in Q1 2024, representing a year-over-year growth of 0.65%[38]. - Net operating income (NOI) for Same Store Properties decreased by 1.3% year-over-year to $67.118 million in Q1 2025 from $67.991 million in Q1 2024[38]. - Consolidated net operating income was $73.925 million in Q1 2025, down from $79.070 million in Q1 2024[38]. - Cash net operating income rose by 3.5% year-over-year to $67.224 million in Q1 2025, compared to $64.941 million in Q1 2024[38]. Occupancy and Leasing - Core portfolio occupancy was 86.6% and leased was 89.2% as of March 31, 2025[11]. - New and renewal leases signed totaled 235,000 square feet in the wholly-owned portfolio, with a total of 340,000 square feet including joint ventures[5]. - The tenant retention ratio was 55% for the first quarter of 2025[10]. - Same Store Properties occupancy rates were 86.4% in 2025, slightly down from 86.5% in 2024[38]. - The Schuylkill Yards residential development project Avira is now 96% leased, with stabilization anticipated later this quarter[2]. Guidance and Financial Ratios - The company narrowed its 2025 FFO guidance from $0.60 - $0.72 per diluted share to $0.61 - $0.71 per diluted share[13]. - The FFO payout ratio for the first quarter of 2025 was 107%, compared to 63% in the first quarter of 2024[34]. Assets and Liabilities - Total assets as of March 31, 2025, were $3,423,786, a decrease from $3,492,213 as of December 31, 2024[30]. - Total liabilities decreased to $2,424,390 as of March 31, 2025, from $2,447,626 as of December 31, 2024[30]. - Cash and cash equivalents decreased significantly to $29,428 as of March 31, 2025, from $90,229 as of December 31, 2024[30]. Expenses - Operating expenses for the first quarter of 2025 totaled $109,414, an increase from $103,560 in the first quarter of 2024[32]. - Interest expense increased to $31.845 million in Q1 2025 from $25.049 million in Q1 2024, reflecting a significant rise in financing costs[38]. - General and administrative expenses rose to $17.470 million in Q1 2025, up from $11.104 million in Q1 2024, indicating increased operational costs[38]. Operating Income - Same store net operating income (NOI) decreased by 2.6% on an accrual basis but increased by 2.3% on a cash basis[9]. - Net Operating Income (NOI) for the first quarter of 2025 was $15,161, a decrease of 33.8% compared to $22,924 in the same period of 2024[31].

Financial Data and Key Metrics Changes - The first quarter FFO was $0.14 per share, with a net loss of $27.4 million or $0.16 per share [7][37] - The capital ratio was 12.2%, slightly above the 2025 business plan range [12] - The CAD payout ratio for the first quarter was 169.4%, significantly elevated due to older tenant allowances and accrued preferred dividends [48] Business Line Data and Key Metrics Changes - The quarterly retention rate was 55%, with leasing activity approximating 340,000 square feet [8] - The operating portfolio ended the quarter at 86.6% occupied and 89.2% leased, with Philadelphia at 93% occupied and 96% leased [10] - The mark-to-market was 8.9% on a GAAP basis and 2.3% on a cash basis, both above business plan expectations [12] Market Data and Key Metrics Changes - The vacancy rate in Philadelphia is 18%, with 50% of that concentrated in just 14 buildings [18] - Austin recorded over 112 tenants actively seeking more than 3.7 million square feet of space, a 33% increase in demand over the fourth quarter of 2024 [20] - The Life Science sector continues to recover, supported by a strong regional healthcare ecosystem [19] Company Strategy and Development Direction - The company aims to stabilize its development projects, with a focus on the residential developments at 3025 JFK and One Uptown [23] - The development pipeline is projected to generate about $41 million of annualized NOI upon stabilization [30] - The company is exploring mixed-use developments and potential monetization strategies to address the current discount to NAV [102][106] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty is affecting decision-making but has not significantly delayed larger prospects [60] - The operating platform remains stable with limited near-term rollover risk, and liquidity is in excellent shape [54] - The company is optimistic about capturing demand in both Philadelphia and Austin as the market improves [22] Other Important Information - The company has no unsecured bond maturities until November 2027, and 95.4% of wholly-owned debt is fixed [41] - The anticipated second quarter property-level operating income is approximately $70 million, slightly above the first quarter [42] - The company is not planning any property acquisitions or ATM activity for the year [45] Q&A Session Summary Question: Can you provide more color on the leasing pipeline, particularly in Austin? - Management noted increased tour activity and interest from technology and financial service companies, with a mix of smaller and larger space requirements [58][70] Question: How is the macro environment affecting decision-making? - Management indicated that while decision-making is slower, larger prospects have not paused due to macro uncertainty [60][61] Question: What is the status of the 300 Delaware conversion project? - The conversion is expected to yield around 7.5% with minimal NOI loss, as the property has been under-leased for years [81][84] Question: How has the buyer pool composition changed in the current market? - There is a reemergence of institutional buyers, with a significant increase in their participation in the office buying pool [91][92] Question: What is the strategy regarding recapitalizing development projects? - The company is exploring various options, including reducing equity stakes and potentially pooling assets for better value propositions [99][100] Question: Are tenants asking for more concessions or smaller spaces? - There has been no significant change; most tenants are maintaining their space, with some downsizing while upgrading to higher quality [115] Question: What is the status of the GSA as a tenant? - The GSA lease is active until 2030, with ongoing discussions about future plans, and they are utilizing all their parking spaces [120][121] Question: What is the impact of Spark Therapeutics' layoffs on the lease? - Spark, owned by Roche, has a strong credit lease with no early termination rights, and their research activities continue [129][130]

Q1 2025 Executive Summary (unaudited in millions, except square footage and acreage) BRANDYWINE REALTY TRUST | Page 1 3151 Market Street (dedicated life science building), Schuylkill Yards, Philadelphia, PA 2025 FIRST QUARTER S U P P L E M E N T A L INFORMATION PACKAGE QUALITY • INNOVATION • INTEGRITY • COMMUNITY Table of Contents | | Page | | --- | --- | | Executive Summary | 1 | | 2025 Business Plan Trend Line | 3 | | Development Summary | 8 | | Balance Sheet and Liquidity | 13 | | Land Inventory | 14 | | ...

Financial Data and Key Metrics Changes - The first quarter FFO was $0.14 per share, with a net loss of $27.4 million or $0.16 per share [5][23] - The capital ratio was 12.2, slightly above the business plan range for 2025 [9] - The CAD payout ratio for the first quarter was 169.4%, significantly elevated due to deferred tenant improvement allowances and accrued preferred dividends [30][21] Business Line Data and Key Metrics Changes - The quarterly retention rate was 55%, with leasing activity approximating 340,000 square feet [6] - The operating portfolio ended the quarter at 86.6% occupied and 89.2% leased, with Philadelphia at 93% occupied and 96% leased [7][8] - The mark to market was 8.9% on a GAAP basis and 2.3% on a cash basis, both above business plan expectations [8] Market Data and Key Metrics Changes - In Austin, occupancy is at 75%, impacted by early terminations [8] - The life science sector is recovering, with a strong regional healthcare ecosystem supporting growth [13] - The demand for high-quality office space is increasing, with a notable flight to quality trend [12] Company Strategy and Development Direction - The company aims to stabilize its development projects, with significant progress made in residential developments [15] - The focus is on maintaining minimal balances on the line of credit and ensuring ample liquidity [10] - The company plans to capitalize on improving real estate market conditions and has a strong pipeline of leasing activity [11][34] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic uncertainty is affecting decision-making but has not significantly delayed larger prospects [40] - The company remains optimistic about increased leasing activity in Austin as the tech sector revitalizes [14] - The overall sentiment in real estate markets is improving, with a solid operating foundation established [10][34] Other Important Information - The company anticipates no property acquisitions and plans to recapitalize developments as they approach stabilization [29] - The projected capital plan for the year totals $180 million, focusing on development and redevelopment projects [30] - The company is targeting a midpoint of $50 million in sales for the year, with a mix of institutional and private equity buyers showing interest [62] Q&A Session Summary Question: Pipeline details, particularly in Austin - Management noted increased tour activity and interest from technology and financial service companies, with a mix of smaller and larger space requirements [38] Question: Decision-making process amid macro uncertainty - Management indicated that while decision-making is slower, larger prospects have not paused due to macro conditions [40] Question: Leasing pipeline breakdown - The operating portfolio pipeline is between 1.7 and 1.8 million square feet, with strong leasing activity in Philadelphia [46] Question: Economics of the office to residential conversion at 300 Delaware - The conversion is expected to yield around 7.5%, with minimal NOI loss due to the property being under-leased [54][56] Question: Changes in buyer pool composition and pricing - The buyer pool has shifted towards institutional quality buyers, with a significant increase in their market share [62] Question: Capital provider appetite for multifamily projects - There is a higher visibility and depth in the market for residential properties compared to office products [68] Question: Impact of Spark Therapeutics layoffs - Management confirmed that Spark has no early termination rights on their lease, and the company remains committed to its operations [88]

Financial Performance - For the quarter ended March 2025, Brandywine Realty Trust reported revenue of $121.52 million, down 3.9% year-over-year, with an EPS of $0.14 compared to -$0.10 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $121.06 million by 0.38%, while the EPS fell short of the consensus estimate of $0.15 by 6.67% [1] Revenue Breakdown - Revenue from rents was $114.43 million, surpassing the two-analyst average estimate of $113.35 million, reflecting a year-over-year decline of 3.9% [4] - Revenue from third-party management fees, labor reimbursement, and leasing was $5.83 million, exceeding the average estimate of $5.26 million, with a year-over-year change of -1.1% [4] - Revenue from other sources was $1.26 million, significantly below the estimated $5.25 million, representing a year-over-year decline of 20.4% [4] Stock Performance - Shares of Brandywine Realty Trust have returned -17.6% over the past month, compared to a -8.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Brandywine Realty Trust (BDN) came out with quarterly funds from operations (FFO) of $0.14 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to FFO of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an FFO surprise of -6.67%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.24 per share when it actually produced FFO of $0.17, delivering a surprise of -29.17%. Over the la ...

Core Insights - Brandywine Realty Trust reported a net loss of $27.4 million, or $0.16 per diluted share, for Q1 2025, compared to a net loss of $16.7 million, or $0.10 per diluted share, in Q1 2024 [4][7][32] - Funds from Operations (FFO) available to common shareholders totaled $24.7 million, or $0.14 per diluted share, down from $41.2 million, or $0.24 per diluted share, in the same quarter last year [5][36] - The company achieved 92% of its speculative revenue target for 2025 and experienced positive rental rate increases of 8.9% on an accrual basis [2][7] Financial Results - Total revenue for Q1 2025 was $121.5 million, a decrease from $126.5 million in Q1 2024 [32] - Operating expenses increased to $109.4 million from $103.6 million year-over-year [33] - The company’s net operating income (NOI) for same-store properties decreased by 2.6% on an accrual basis but increased by 2.3% on a cash basis [6][38] Portfolio and Leasing Activity - The core portfolio was 86.6% occupied and 89.2% leased as of March 31, 2025 [9][38] - Approximately 235,000 square feet of new and renewal leases were signed in Q1 2025, with an additional 306,000 square feet scheduled to commence after March 31, 2025 [8][9] - The tenant retention ratio was reported at 55% for the quarter [8] Liquidity and Debt Management - The company maintained a strong liquidity position with $65 million outstanding on its $600 million unsecured line of credit and $29.4 million in cash and cash equivalents as of March 31, 2025 [2][7] - Brandywine Realty Trust repaid a $70 million unsecured term loan on its maturity date [7][9] Guidance and Future Outlook - The company narrowed its FFO guidance for 2025 from a range of $0.60 to $0.72 per share to $0.61 to $0.71 per share [2][11] - The adjusted loss per share guidance for 2025 is now $(0.56) to $(0.46) [11]

Group 1 - The stock of Brandywine Realty Trust (BDN) is experiencing significant attention due to high implied volatility in the options market, particularly the April 17, 2024 $3 Call option [1] - Implied volatility indicates market expectations for future price movements, suggesting that investors anticipate a significant change in Brandywine Realty Trust's stock price, potentially due to an upcoming event [2] - Brandywine Realty Trust currently holds a Zacks Rank 5 (Strong Sell) in the REIT and Equity Trust – Other industry, which is in the bottom 45% of the Zacks Industry Rank, with recent earnings estimates declining from 22 cents per share to 19 cents [3] Group 2 - The high implied volatility surrounding Brandywine Realty Trust may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Impairment Charges and Financial Risks - The company recognized aggregate impairment charges of $53.1 million for the year ended December 31, 2024, compared to $168.8 million for the year ended December 31, 2023[63]. - Impairment charges included $44.7 million related to Real Estate Investments and $8.4 million related to Investment in Unconsolidated Real Estate Ventures for 2024[63]. - The company faces risks from increased vacancies and inability to rent space on favorable terms, which may negatively impact market rental rates and property values[63]. - Financial difficulties of tenants, including bankruptcy, could adversely affect the company's cash flow and ability to make distributions to shareholders[64]. - Increased operating costs, such as insurance and real estate taxes, may reduce profitability if not fully passed on to tenants[65]. - Development projects may face challenges such as high construction costs and delays, impacting expected returns on investment[66]. - The company may encounter liabilities from acquired properties, including unknown liabilities that could adversely affect financial results[71]. - Competition from other real estate developers may reduce suitable investment opportunities and increase vacancies, affecting cash flow[73]. - Property ownership through unconsolidated real estate ventures may limit the company's ability to act exclusively in its interest[74]. - The company may not be able to renew leases or re-lease space as leases expire, adversely affecting distributions to shareholders[72]. Investment and Financing Risks - The company has previously made equity investments and may acquire additional preferred equity investments, mezzanine loans, and other subordinated investments, which expose it to greater risk of loss[76]. - Real estate investments, particularly large office and mixed-use properties, are illiquid, potentially reducing the company's ability to respond to economic changes and impacting cash flow[77]. - The company has agreed not to sell certain properties for varying periods, which may limit its ability to dispose of assets or pay down partnership debt favorably[78]. - Property taxes may increase due to changes in tax rates or reassessments, adversely impacting cash flow and the ability to pay dividends[80]. - Changes in tax rates and regulatory requirements could negatively affect cash flow and the ability to make expected distributions to shareholders[81]. - The company may incur substantial costs for environmental contamination liabilities, which could affect its financial condition[82]. - Compliance with the Americans with Disabilities Act (ADA) may require significant expenditures, impacting cash flow and financial results[85]. - Failure to qualify as a REIT would subject the company to federal income tax, reducing cash available for distribution to shareholders[86]. - The company may be forced to borrow funds on a short-term basis during unfavorable market conditions to meet REIT distribution requirements[90]. - The company may be subject to various taxes even if it qualifies as a REIT, reducing cash available for shareholder distributions[91]. - The company faces potential adverse effects from partnership tax audit rules, which could lead to additional taxes, interest, and penalties at the partnership level[93]. - Legislative or regulatory tax changes related to REITs could materially and adversely affect the company's business and shareholder interests[94]. - The company may encounter adverse consequences if a Section 1031 Exchange is later determined to be taxable, potentially increasing taxable income and affecting dividend distributions[95]. - Failure to obtain tax benefits and remain compliant within Qualified Opportunity Zones may adversely impact property values, cash flow, and net income[96]. - The company has limitations on third-party acquisitions to protect its REIT status, with a 9.8% ownership limit imposed on shareholders[97]. Operational and Market Risks - The company is dependent on key personnel for its success, and loss of these individuals could adversely affect operations and relationships[101]. - The company's ability to make distributions is subject to various risks, including operational performance and capital expenditures[102]. - Rising interest rates could increase interest expenses and limit refinancing options, adversely impacting cash flow and distributions[107]. - The company's degree of leverage could limit its ability to obtain additional financing and affect market prices of equity shares[108]. - Certain mortgages include restrictive covenants that could limit flexibility and require early repayment of indebtedness[110]. - 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[111]. - Terrorist attacks and armed conflicts may increase operating costs, including security and insurance, potentially reducing profitability and cash flow[112][113]. - Social, political, and economic instability could adversely affect business operations and financial conditions[114][115]. - Certain potential losses, such as those from acts of war or biological hazards, are generally not covered by insurance, which could lead to significant financial exposure[116]. Data Security and Regulatory Risks - Data security breaches have occurred, including a notable incident on May 1, 2024, which involved unauthorized access to internal systems and personal information[119]. - Insurance coverage for cyber risks may be insufficient to cover all losses resulting from data breaches[120]. - Third-party service providers are also at risk of data breaches, which could incur additional costs and negative consequences for the company[121]. - Changes in federal policy and regulatory frameworks could lead to adverse effects on the real estate industry and the company's operations[115]. - Increased volatility in financial markets due to external threats could impact tenants' ability to pay rent and the company's cost of capital[113]. - The company may face challenges in renewing insurance coverage at reasonable prices, particularly for certain types of risks[116].

Core Viewpoint - Brandywine Realty Trust will participate in the Citi 2025 Global Property CEO Conference, presenting on March 4, 2025, at 7:30 a.m. Eastern Time for approximately 35 minutes [1]. 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 [2]. - The company operates as a real estate investment trust (REIT) and manages a portfolio of 126 properties totaling 19.4 million square feet as of December 31, 2024 [2]. - The company's mission is to shape, connect, and inspire the world through its expertise, relationships, and community involvement [2].