FULL-YEAR RESULTS FOR 2025DERISKED, DELEVERAGED BALANCE SHEETCONSOLIDATION OF LEADERSHIP POSITIONFURTHER IMPROVEMENT IN OPERATING PROFITABILITY AND LEVERAGE RATIO IN 2026 Nexity ready to rebound: Operational momentum and financial discipline evident in results for 2025 Derisked, deleveraged balance sheet: Net financial debt at �278m ahead of the increase in the shareholding in Angelotti, representing a �52m reduction in debt (vs net financial debt of �330m in 2024); Group net financial debt of �328m at y ...

Core Insights - Bill Gates has addressed concerns regarding his farmland holdings, stating he owns less than 1/4000 of U.S. farmland and aims to enhance productivity and job creation through his investments [1] - The trend of institutional investors and large private buyers acquiring farmland has been influenced by inflation and supply chain issues, raising questions about land consolidation and control [2] - Gates' recent acquisition of approximately 2,100 acres in North Dakota contributes to his status as the largest private farmland owner in the U.S., with total holdings estimated between 242,000 and 270,000 acres [4][6] Investment Trends - The farmland market is increasingly viewed as a long-term investment asset, attracting significant interest from institutional investors [2][6] - The investment strategy behind Gates' farmland purchases is managed by Cascade Investment LLC, focusing on land as a durable asset for long-term returns rather than direct farming operations [6] Public Perception and Debate - The expansion of Gates' farmland holdings has sparked discussions about the implications of large-scale land ownership and its limited scrutiny in public discourse [5][10] - The acquisition of farmland by foreign entities, such as the Chinese Fufeng Group, has further fueled debates about agricultural land ownership and its significance [3][4] Accessibility of Real Estate Investment - The concept of real estate as a long-term income-producing asset is becoming more accessible to smaller investors through platforms that allow fractional ownership in residential properties [8][9] - These platforms enable everyday investors to participate in real estate markets without the need for substantial capital or direct management of properties [8][9]

Financial Data and Key Metrics Changes - The company reported an FFO beat of $0.02 per share, driven by higher NOI due to lower expenses and improved contributions from the hospitality business [21][22] - Same-store cash NOI exceeded expectations for the quarter, with a year-end occupancy rate of 93%, reflecting an increase of almost 400 basis points since the lows at the end of Q1 2024 [23][24] - The company achieved a FAD outperformance of $65 million, with nearly $20 million occurring in Q4 alone [22][41] Business Line Data and Key Metrics Changes - The hospitality business saw a solid fourth quarter of activity, contributing positively to overall performance [21] - Leasing activity was strong, with almost 800,000 sq ft of Manhattan office leasing in Q4, bringing the annual total to 2.6 million sq ft [22][24] - The company is on track to achieve its 2026 leasing goals, including a same-store occupancy objective of 94.8% by year-end [24] Market Data and Key Metrics Changes - Tax collections in New York City increased by 8.5% in 2025, primarily driven by growth in personal income [7] - The Big Five banks reported a year-over-year earnings increase of 6.7%, with investment banking revenues up 12.6% [9] - The company anticipates a significant increase in transaction volume for 2026, projecting it to exceed the $23 billion recorded in 2025 [10] Company Strategy and Development Direction - The company is focused on executing a $7 billion refinancing strategy and a $2.5 billion disposition plan, with various stages of financing already in progress [16][17] - There is a strong appetite for investment in New York City, with the company actively engaging with global investors to deploy capital [10][18] - The management emphasizes the importance of human capital, expecting to generate over $100 million in fee revenue from institutional investors [12] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the fiscal stability of New York City, despite potential budget deficits, citing a strong business economy [7][8] - The company views 2026 as a promising year for the commercial office sector, with expectations of occupancy gains and business growth [9][11] - Management highlighted the disconnect between the value of the company's assets and its share price, indicating optimism for future stock performance [12][51] Other Important Information - The company is launching fundraising for a new fund focused on senior credit lending, aiming to expand its fund business [19] - The management noted that the credit rating of New York City remains strong, reaffirmed by S&P, which is crucial for navigating near-term risks [8] Q&A Session Summary Question: How are tenants incorporating AI into their business plans? - Management noted that there have been no instances of tenants downsizing due to AI; rather, many are experiencing growth and increased demand for office space [27][28] Question: What areas of interest did overseas investors express during recent meetings? - Investors are looking to diversify their portfolios, with a strong interest in New York City real estate as a safe investment [31][32] Question: Can you provide details on the timing of rental revenue recognition from leases that have commenced? - Management indicated that the timing of revenue recognition is dependent on when tenants finish their space and move in, making it difficult to provide specific quarterly guidance [36][38] Question: What is the impact of asset sales on occupancy gains? - Management clarified that the occupancy objective is primarily driven by organic leasing rather than asset sales, although some lower-occupancy sales could have a nominal effect [70] Question: How does the board approach dividend decisions? - The board takes a holistic view of the company's long-term plans and does not base dividend decisions solely on short-term earnings fluctuations [48][50]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported a 63% increase in revenue and a 130% increase in net income compared to Q3 2024 [5] - Residential real estate revenue grew by 94% to $36.8 million from $19 million, with the average homesite base price increasing to $150,000 from $86,000 and gross margin rising to 53% from 39% [5] - Recurring revenue from leasing increased by 7% to a record $16.7 million, while hospitality revenue rose by 9% to a record $60.6 million for the third quarter [5][6] Business Line Data and Key Metrics Changes - The company executed 40 new commercial leases and renewed 43 existing leases for a total of 83 during the first nine months of 2025, compared to 53 during the same period in 2024 [6] - At the end of Q3 2025, there were 1,992 residential units under contract, up from 1,381 in the same period in 2024 [6] - The company has over 24,000 entitled units in its residential pipeline across various stages of planning, engineering, permitting, or development [6] Market Data and Key Metrics Changes - The sale of Watercress Senior Living for $41 million resulted in a gross profit of $19.4 million, demonstrating the company's ability to monetize developed properties [7] - The company is leveraging new nonstop flights between Northwest Florida Beaches International Airport and LaGuardia Airport to expand marketing efforts to a larger population base [10][11] Company Strategy and Development Direction - The company plans to continue creating asset value by developing operating properties for recurring revenue or monetizing them for capital allocation [8] - A measured and multifaceted capital allocation strategy was executed, with $20.4 million for capital expenditures, $8.7 million for share repurchase, $8.1 million for cash dividends, and $28.4 million for project debt reduction [9] - The company is focused on strategic timberlands for monetization opportunities while ensuring that assets are not sold at a discount [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's cash generation capabilities and emphasized the importance of maintaining liquidity while executing a capital allocation strategy [13][21] - The company is optimistic about the growth potential in the region, particularly with the establishment of an academic health center and increased direct flights to major metropolitan areas [55][56] Other Important Information - The company announced a 14% increase in the quarterly dividend to $0.16 per share, marking a 129% increase in dividend payments since the program's inception in 2020 [10] - The outstanding share balance is now below 58 million for the first time in nearly 30 years, reflecting significant share repurchase activity [10] Q&A Session Summary Question: Why is the company building cash rather than increasing the pace of buybacks? - Management highlighted the positive cash generation and emphasized that share repurchase remains a priority within their capital allocation strategy [12][13] Question: Why not sell more assets at values that are material relative to the current market cap? - Management stated that they are evaluating assets for monetization but will not sell at a discount, ensuring that shareholders receive fair value [15][17] Question: What are the expected cash levels in 12 to 18 months? - Management indicated that future cash levels will depend on various factors, including macroeconomic conditions and the company's capital allocation strategy [18][21] Question: Any updates on talks with a large-scale builder for Pigeon Creek DSAP? - Management confirmed that discussions are ongoing but did not provide specific updates [22] Question: What is the current value of the company's land inventory? - Management mentioned that a third-party valuation of operating properties was provided at the annual meeting, and similar evaluations for timberlands are in process [42] Question: How does the company view pricing and discounting? - Management clarified that they have not been discounting home site pricing and maintain a consistent pricing strategy across residential communities [51][53]

Financial Data and Key Metrics Changes - Reported FFO per share for Q2 2025 was $1.91, including $0.15 from the development of Freedom Plaza Shopping Center, while excluding this, FFO was $1.76, exceeding consensus and prior year FFO [8][9][27] - Comparable property level operating income grew approximately 5% in Q2, while comparable base rents increased by 4% year-over-year [9][27] - NAREIT FFO per share guidance for 2025 was raised to a range of $7.16 to $7.26, reflecting a 6.5% growth at the midpoint [31][33] Business Line Data and Key Metrics Changes - Leasing activity was strong with 119 comparable deals totaling 644,000 square feet, marking the second-highest volume of leasing ever recorded [22] - Rent spreads were solid at 10% over in-place rents and 21% on a straight-line basis [22] - The company has a robust leasing pipeline of approximately 1,000,000 square feet with rent spreads in the mid-teens [23] Market Data and Key Metrics Changes - The acquisition of Town Center Plaza and Town Center Crossing in Kansas City was highlighted, with a total of 550,000 square feet and medium household incomes of $180,000 in Leawood, indicating strong market demographics [24] - Annual foot traffic for the acquired centers places them in the top 15th percentile of the company's portfolio [24] Company Strategy and Development Direction - The company is expanding its acquisition strategy geographically while maintaining a focus on high-quality retail properties [10][11] - Disposition strategy includes selling assets that limit long-term growth potential, with recent sales totaling $143 million [14][30] - Development remains a core competency, with a focus on residential projects due to historically lower exit cap rates [19][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued leasing demand and strong operational results, despite some market challenges [20][26] - The company anticipates occupancy levels to rise from 93.6% to the low-94% range by year-end [31][104] - Management acknowledged investor concerns and emphasized a commitment to clarifying the company's strategy moving forward [20] Other Important Information - The company declared a quarterly common dividend increase to $1.13 per share, marking the 58th consecutive annual increase [33] - The liquidity position improved to $1.55 billion, with over $1.23 billion available on the unsecured credit facility [29] Q&A Session Summary Question: Potential acquisitions in the pipeline - Management indicated that one potential acquisition is in a familiar market while another is in a new market, with cap rates expected in the high sixes to low sevens [35][36] Question: Transition to new markets - Management noted that post-COVID, there is greater openness to exploring new markets, driven by retailer demand [40][42] Question: Timing of executed leases - Executed deals are expected to come in over the next three quarters, with openings typically occurring about twelve months after execution [45][46] Question: Environment in Washington DC - Restaurants in the company's markets remain resilient, with overall traffic trends showing improvement [49][51] Question: Competitive bidding process for new properties - Management noted that competition for larger assets in new markets is less intense compared to coastal markets [96][97] Question: Multifamily portfolio size - The company expects the percentage of residential income to remain around 10% to 11% of total income [100][101]

Core Insights - The company has returned to positive current operating profit starting in H1 2025, achieving €6 million compared to a loss of €54 million in H1 2024, driven by effective actions and alignment with market trends [5][9][30] - There is strong momentum for homebuyers, with a 34% increase in homebuyer activity in H1 2025, and a notable 45% increase in Q2 2025 [3][6][15] - The financial structure has been reinforced until 2028, with net debt at €398 million, reflecting a moderate increase of €68 million compared to the previous year [34][36] Financial Performance - Revenue for H1 2025 totaled €1,302 million, down 12% from H1 2024, primarily due to a decline in business activity [28][25] - Current operating profit for "New Nexity" improved by €60 million to €6 million in H1 2025, with a margin of 0.5% [9][29] - The backlog remains stable at €4 billion, equivalent to 1.6 years of revenue [12] Business Activity - The share of homebuyers in the sales mix increased to 35%, up 13 points compared to H1 2024 [4][60] - Reservations in residential real estate decreased by 15% in volume but showed a favorable price effect, with a 12% decline in value [11][15] - The absorption rate improved to 5 months, indicating effective supply rotation with virtually no unsold completed homes [14] Divisional Performance - The Services division saw a revenue increase of 12% to €206 million, driven by growth in Serviced Properties and Distribution [19][20] - Revenue from Urban Planning and Commercial Real Estate Development dropped significantly by 83% to €31 million due to a lack of new orders [17][30] - The Serviced Properties business reported a margin of 12.5%, reflecting improved profitability [23][31] Cost Management and Savings - The company is ahead of schedule on a cost-savings plan targeting €100 million by 2026, achieving 92% of the expected savings for full-year 2025 [5][31] - Ongoing deleveraging efforts have resulted in a reduction of working capital requirements, with a decrease of €19 million in Urban Planning and Residential Real Estate Development [34][43] Market Conditions - The housing market remains challenging, influenced by a slowdown in building permit issuance and the end of France's Pinel scheme [11][15] - Improved financing conditions, including stabilized mortgage rates around 3.1%, have positively impacted purchasing power for clients [15][19] Guidance and Future Outlook - The company has confirmed its guidance for 2025, anticipating continued operational profitability and a focus on selective development and profitability [51][54] - The transformation initiated in 2024 is expected to yield further benefits, positioning the company for profitable growth in 2025 [7][8]

Core Insights - June 2025 saw a continued increase in home sales, marking the fifth consecutive month of growth, with a 1.3% rise from May and a 5.7% increase year-over-year [1][6] - Inventory levels also increased, with homes for sale up 3.9% month-over-month and 30.1% year-over-year, indicating a more favorable market for buyers [1][14] - The median sales price reached $440,000, reflecting a 2.8% increase from May and a 2.1% increase from June 2024 [1][10] Sales Activity - The overall number of home sales increased by 5.7% compared to June 2024 and by 1.3% from May 2025 [6] - Chicago experienced the highest sales growth, with a 12.9% increase from June 2024 [3] - New listings decreased by 12.8% from May 2025, but were still 1.4% higher than June 2024, marking the 16th consecutive month of year-over-year growth [2][4] Inventory Trends - Active inventory rose significantly, up 30.1% year-over-year across the surveyed metro areas [2] - The months' supply of inventory increased to 2.7 months, up from 2.1 months in June 2024 [8][14] - Markets with the highest months' supply included Miami, FL at 7.4 months and Honolulu, HI at 5.9 months [14][16] Pricing Dynamics - The average close-to-list price ratio was 99%, consistent with May 2025 but down from 100% in June 2024 [8][12] - The markets with the largest year-over-year increases in median sales price included Cleveland, OH at +9.0% and Anchorage, AK at +8.5% [10][11] Market Highlights - Notable increases in new listings were observed in Fayetteville, AR (+24.9%), Las Vegas, NV (+18.7%), and Manchester, NH (+16.8%) [4][5] - Conversely, significant decreases in new listings were reported in Trenton, NJ (-25.2%) and Philadelphia, PA (-24.0%) [4] - The markets with the highest year-over-year sales increases included New Orleans, LA (+17.1%) and Manchester, NH (+16.1%) [6][9]

Core Insights - Home sales increased by 8.6% in May compared to April, but were still 3.5% lower than the same month in 2024 [1][6] - The number of homes for sale rose by 8.3% month over month and 34.8% year over year, marking the 17th consecutive month of inventory growth [2][17] - The median sales price reached $442,000, a nominal increase of 0.6% from May 2024, continuing a trend of price growth for 23 months [2][10] Sales and Inventory Trends - New listings increased by 4.4% from April and 7.9% from May 2024, indicating a sustained upward trend in new inventory [2][4] - The average days on market decreased to 39 days, down from 41 days in April but up from 34 days in May 2024 [8][14] - The months' supply of inventory was 2.5 months, up from 1.9 months in May 2024, reflecting a growing inventory relative to sales [17] Market Performance by Region - The markets with the largest year-over-year increases in new listings included Washington, D.C. (+25.4%), Fayetteville, AR (+25.1%), and Wichita, KS (+23.7%) [4][5] - Conversely, Miami, FL experienced the largest year-over-year decrease in sales at -16.5%, followed by Honolulu, HI at -14.2% [6][9] - The highest median sales price increases were seen in Trenton, NJ (+9.9%), Hartford, CT (+8.5%), and Honolulu, HI (+8.3%) [10][11] Pricing Dynamics - Buyers paid an average of 99% of the asking price in May, consistent with April but slightly below the 100% seen in May 2024 [8][12] - The close-to-list price ratio averaged 99% across the 52 metro areas, with Hartford, CT having the highest ratio at 104.9% [12][13] Days on Market Analysis - The average days on market for homes sold in May was 39 days, with Miami, FL and Fayetteville, AR having the highest averages at 76 days [14][16] - The lowest days on market were recorded in Baltimore, MD (12 days), Washington, D.C. (13 days), and Manchester, NH (14 days) [14] Summary of Market Conditions - The overall housing market shows signs of recovery with rising sales, increasing inventory, and stable prices, suggesting a potentially active summer season ahead [3]

Core Insights - April home sales increased by 11.3% compared to March, but were down 1.4% year-over-year, indicating a mixed market trend [1][6] - New listings rose by 6.2% from March and 7.5% year-over-year, contributing to a growing inventory [1][4] - The median sales price for homes in April reached $440,000, up 1.2% from March and 2.3% from the previous year [2][9] Sales and Inventory - Active inventory across the surveyed metro areas increased by 35.7% year-over-year, marking a significant rise in available homes [2][15] - The months' supply of inventory was 2.3, up from 1.7 a year ago, indicating a more balanced market [15] - Days on market decreased to an average of 40 days, down from 44 days in March, suggesting quicker sales [6][13] Market Performance - The markets with the largest year-over-year increase in new listings included Las Vegas, NV (+27.7%), Burlington, VT (+24.8%), and Fayetteville, AR (+22.5%) [4][5] - Conversely, the largest year-over-year decreases in closed transactions were observed in Miami, FL (-14.1%), New Orleans, LA (-7.6%), and Tampa, FL (-7.2%) [6][8] - The average close-to-list price ratio was 99%, consistent with March but down from 100% in April 2024, indicating a slight shift in buyer negotiation power [11] Price Trends - The median sales price saw the highest year-over-year increases in Cleveland, OH (+10.9%), Hartford, CT (+10.3%), and Birmingham, AL (+9.0%) [9][10] - The markets with the largest year-over-year decrease in median sales price included Bozeman, MT (-4.4%), Honolulu, HI (-2.3%), and Tampa, FL (-1.6%) [9][10] Regional Insights - Miami, FL had the highest months' supply of inventory at 6.9, followed by Honolulu, HI at 5.6 and Tampa, FL at 4.0, indicating a more saturated market in these areas [15][16] - The highest days on market were recorded in Fayetteville, AR (79 days), Miami, FL (78 days), and Orlando, FL (70 days), suggesting slower sales in these regions [13][14]

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 | | ...