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 | | ...