Brandywine Realty Trust narrowed its 2026 funds-from-operations guidance after posting a wider first-quarter loss and lower FFO than a year earlier, while leasing activity picked up and the company moved closer to its property sale target.
For the three months ended March 31, Brandywine reported a net loss attributable to common shareholders of $48.9 million, or 28 cents per share, compared with a loss of $27.4 million, or 16 cents per share, in the same period last year. The company said the quarter included $11.9 million of non-cash impairment charges tied to properties in its wholly owned portfolio.
FFO available to common shareholders fell to $20.0 million, or 11 cents per diluted share, from $24.7 million, or 14 cents per diluted share, a year earlier.
Leasing volume improved sharply. Brandywine signed 268,000 square feet of new and renewal leases in its wholly owned portfolio, the most activity since the fourth quarter of 2024. Including unconsolidated joint ventures, leasing totaled 422,000 square feet. Of the wholly owned activity, 77,000 square feet were renewals, 114,000 square feet were new leases and 46,000 square feet were tenant expansions. Another 182,000 square feet of executed leases are scheduled to begin after March 31.
The core portfolio was 88.3% occupied at quarter-end and 89.9% leased as of April 15. Same-store NOI increased 0.8% on an accrual basis and 3.3% on a cash basis. Rental rate mark-to-market rose 4.1% on an accrual basis, while the cash mark-to-market fell 2.6%. Renewal rents increased 5.0% on an accrual basis, while new lease and expansion rents declined 0.9%.
Brandywine said its portfolio recycling program remains on track, with about $305 million of properties under agreement or in due diligence against a $290 million disposition target. The company expects to close a seven-year financing for Avira for up to $100 million in the second quarter and use proceeds, along with its credit line, to repay an existing construction loan due in July.
Liquidity stood at $36.2 million in cash and cash equivalents, with $65.0 million drawn on its $600.0 million unsecured line of credit. No unsecured bonds mature until November 2027.
The company also tightened its 2026 outlook. Its loss per share guidance moved to a range of 70 cents to 76 cents from a prior range of 58 cents to 66 cents. FFO guidance was narrowed to 52 cents to 58 cents per diluted share from 51 cents to 59 cents. Brandywine said it has already achieved $16.4 million of its $17.0 million to $18.0 million speculative revenue target. Following these announcements, the company's shares moved -2.62%, and are now trading at a price of $2.60. For the full picture, make sure to review BRANDYWINE REALTY TRUST's 8-K report.
