Brandywine Realty Trust(US:BDN) Globenewswire·2025-10-22 21:08Core Insights - Brandywine Realty Trust reported financial results for Q3 and the first nine months of 2025, showing a net loss of $(26.2) million or $(0.15) per share, a significant improvement from a net loss of $(165.5) million or $(0.96) per share in Q3 2024 [9][10]. - The company achieved funds from operations (FFO) of $28.0 million or $0.16 per diluted share in Q3 2025, down from $39.8 million or $0.23 per diluted share in Q3 2024 [10][12]. - The company has a strong liquidity position with no outstanding balance on its $600 million unsecured line of credit and $75 million in cash [2][15]. Management Comments - Management expressed satisfaction with the progress of the 2025 business plan, achieving the midpoint of the speculative revenue target and maintaining a low forward lease expiration schedule of only 4.9% through 2026 [2]. - The commercial development pipeline remains robust at 1.6 million square feet, with 75,000 square feet in active lease negotiations [2]. - The company plans to recapitalize several projects as market conditions improve, although the timing has been delayed [2]. Financial Results - Total revenue for Q3 2025 was $121.4 million, compared to $131.8 million in Q3 2024 [39]. - Same store net operating income (NOI) increased by 1.4% on an accrual basis and 2.1% on a cash basis [13]. - The core portfolio was 88.8% occupied and 90.4% leased as of September 30, 2025 [16]. Disposition and Joint Venture Activity - The company completed the sale of a 223,000 square foot property in Austin, Texas for $55.1 million, or $247 per square foot, with 70% occupancy at the time of sale [4]. - In October 2025, Brandywine acquired its partner's preferred equity interest in 3025 JFK for $70.5 million, consolidating the asset in its financials [5]. Guidance and Future Outlook - The company revised its 2025 FFO guidance range to $0.51 to $0.53 per share, reflecting a prepayment charge of $0.07 per share [2][18]. - The year-end core occupancy range is projected to be between 88% and 89%, with a tenant retention rate range of 62% to 63% [19]. - The company anticipates a fourth quarter earnings charge of approximately $12.3 million due to early loan repayment [2]. Dividend Distribution - The Board of Trustees declared a quarterly dividend distribution of $0.08 per common share, payable on October 23, 2025 [17]. Portfolio and Leasing Activity - The core portfolio consists of 60 properties totaling 11.3 million square feet, with a tenant retention ratio of 68% and net absorption of 21,000 square feet during Q3 2025 [16][13]. - New and renewal leases signed during the quarter totaled 164,000 square feet, with an additional 182,000 square feet of executed new leasing scheduled to commence after September 30, 2025 [14]. Capital Markets Activity - The company issued $300 million of 5-year unsecured notes at a 6.125% yield, using proceeds to repay a $245 million secured loan due in February 2028 [15]. - As of September 30, 2025, total assets were $3.32 billion, with total liabilities of $2.47 billion [36].