BDN

Brandywine Realty Trust Reports Net Loss and Decrease in FFO

Brandywine Realty Trust (NYSE: BDN) has reported its financial and operating results for the third quarter of 2024, showcasing several significant changes and updates to its 2024 business plan. The company's net loss available to common shareholders for the period was $(165.5) million, or $(0.96) per share, which includes $(161.4) million, or $(0.93) per share, of non-cash impairment charges. This marks a substantial increase from the net loss of $(21.7) million, or $(0.13) per diluted share, in the third quarter of 2023.

The funds from operations (FFO) for the third quarter of 2024 were $39.8 million, or $0.23 per diluted share, compared to $50.6 million, or $0.29 per diluted share, in the third quarter of 2023.

In terms of leasing activity, Brandywine Realty Trust signed new and renewal leases for a total of 298,000 square feet in wholly-owned properties and 558,000 square feet including joint ventures. The tenant retention ratio increased by 3.0% to reach 42%, exceeding the original 2024 business plan target by over 10 percentage points.

The rental rate mark-to-market increased by 14.9% on an accrual basis and 8.9% on a cash basis. However, the same-store results decreased by (2.0%) on an accrual basis and increased by 1.6% on a cash basis.

The company also made progress on its asset sales target by selling an office portfolio in the Pennsylvania suburbs for $65.5 million, leading to an adjustment of its 2024 asset sales target from $90 million to $150 million.

Brandywine Realty Trust also adjusted and narrowed its FFO range from $0.91 to $0.96 per share to $0.89 to $0.92 per share due to the changes made to its 2024 business plan.

The net loss allocated to common shares for the first nine months of 2024 totaled $(152.3) million or $(0.88) per share, compared to a net loss of $(39.9) million or $(0.23) per diluted share in the first nine months of 2023. The FFO available to common shares and units for the first nine months of 2024 was $119.0 million, or $0.68 per diluted share, down from $151.1 million, or $0.87 per diluted share, for the first nine months of 2023.

Brandywine Realty Trust's core portfolio, comprising 64 properties totaling 12.2 million square feet, was 87.2% occupied and 88.7% leased as of October 18, 2024, reflecting new leases commencing after September 30, 2024.

The company's guidance for 2024 includes an adjusted loss per share range of $(1.01) to $(0.98) and an adjusted FFO range of $0.89 to $0.92 per diluted share.

Today the company's shares have moved -12.3% to a price of $5.5. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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