Brandywine Realty Trust reported a third-quarter 2026 net loss of $22.3 million, or $0.13 per share, compared with a net loss of $26.2 million, or $0.15 per share, in the same quarter a year earlier.
Core FFO fell to $24.6 million, or $0.14 per diluted share, from $28.0 million, or $0.16 per diluted share, in the third quarter of 2025.
For the first nine months of 2026, net loss narrowed to $102.8 million, or $0.59 per share, from $142.6 million, or $0.82 per share, in the prior-year period. Core FFO declined to $68.2 million, or $0.38 per diluted share, from $78.8 million, or $0.44 per diluted share.
The company ended the quarter with $313 million in cash and cash equivalents, up from $176 million cited after quarter-end closings in the release, and had $137 million drawn on its $600 million unsecured revolving credit facility. Management said combined debt was reduced by $390 million during the quarter.
Brandywine also repurchased about 4.7 million common shares at an average price of $3.19 apiece, totaling $14.9 million. It said the annual dividend savings from those buybacks is about $1.5 million.
On the property side, the core portfolio was 89.0% occupied and 90.5% leased at September 30, 2026. That compares with 88.8% occupied a year earlier for same-store properties. Same-store NOI fell 0.6% on an accrual basis but rose 1.7% on a cash basis.
Leasing activity included 372,000 square feet signed in the wholly owned portfolio and 558,000 square feet including joint ventures. The tenant retention ratio was 50%. Rental rate mark-to-market increased 10.8% on an accrual basis and 5.7% on a cash basis.
During the quarter, Brandywine completed several sales: a King of Prussia office property for $41.5 million, an Austin office property for $151.0 million, two McLean office properties for $97.1 million, and a Philadelphia office property for $240.0 million. It also sold Solaris, its Austin residential joint venture project, for $136.0 million.
Management raised its 2026 speculative revenue target midpoint to $19.5 million and said it has executed $681 million of sales against a $305 million business plan target. It also lifted its 2026 core FFO guidance to $0.54 to $0.56 per diluted share from prior FFO guidance of $0.53 to $0.57 per share. The company simultaneously widened and lowered its 2026 loss per share outlook to a range of $0.64 to $0.62 from its earlier range of $0.45 to $0.41. Following these announcements, the company's shares moved 0.75%, and are now trading at a price of $2.70. For more information, read the company's full 8-K submission here.
