Financial Data and Key Metrics Changes - The company reported a fourth quarter net loss of $36.9 million, or $0.21 per share, with FFO totaling $14.6 million, or $0.08 per diluted share, in line with consensus estimates [24] - Property level NOI was $70 million, slightly below forecast due to increased operating costs [25] - The company anticipates 2026 FFO at a midpoint of $0.55 per diluted share, representing a 5.8% increase compared to 2025 [27] Business Line Data and Key Metrics Changes - The wholly owned core portfolio is 88.3% occupied and 90.4% leased, with leasing activity for the year approximating 1.6 million sq ft [3][4] - The company executed 415,000 sq ft of leases in the fourth quarter, including 157,000 sq ft in the wholly owned portfolio [4] - The annual tour volume in 2025 outpaced 2024 by 20% in physical tours and 45% on a square footage basis [6][7] Market Data and Key Metrics Changes - In Philadelphia, the largest sub-market, occupancy is at 95% and leasing at 97%, with only 6% of space rolling through 2028 [7] - The company captured 30% market share of new leasing activity in Market West and University City, significantly outperforming its previous 15% share [8] - The Pennsylvania suburbs are 89.4% leased, with Radnor at 91% [9] Company Strategy and Development Direction - The 2026 business plan focuses on returning to earnings growth, stabilizing One Uptown and 3151, and an accelerated sales program to reduce debt [16] - The company plans to maintain minimal balances on its $600 million unsecured line of credit and aims to return to investment-grade metrics [10] - The sales activity target for 2026 is projected between $280 million and $300 million, with an average cap rate around 8% [20] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating platform enables capitalization on improving real estate market conditions, with expectations for further improvement in 2027 [37] - The company is optimistic about the leasing activity and market dynamics, particularly in CBD Philadelphia and University City [59] - Management highlighted the importance of executing the sales program to generate liquidity and improve credit metrics [39] Other Important Information - The company has no unsecured bonds maturing until November 2027 and plans to refinance higher-priced bonds to reduce interest costs [10] - The company is actively evaluating recapitalization opportunities for joint ventures, with plans to maintain a minority stake [23] - The anticipated redevelopment of an existing ATX building is expected to cost between $30 million and $40 million, with a potential cash yield north of 8% [70] Q&A Session Summary Question: What is the hurdle for refinancing bonds? - Management indicated that the focus is on executing the sales program to generate liquidity and improve credit metrics before considering bond refinancing [39] Question: How will the $125 million earmarked for debt or share repurchase be allocated? - The primary objective is to reduce leverage first, with share buybacks considered only after achieving debt reduction goals [40][41] Question: Is there a part of the portfolio that is undervalued? - Management believes the entire portfolio is undervalued and is evaluating which assets to sell based on market conditions and growth potential [46] Question: What is the status of the life science incubator space? - There are signs of activity and expansion in the life science sector, particularly in cell and gene therapy, with a healthy pipeline of tenants [50][51] Question: What is the overall pipeline and demand by market? - The company has a robust pipeline of 1.5 million sq ft, with strong demand in CBD Philadelphia and University City, and a mix of 60% office and 40% life science in development [61][62]

Financial Data and Key Metrics Changes - The company reported a net loss of $36.9 million, or $0.21 per share, for Q4 2025, with FFO totaling $14.6 million, or $0.08 per diluted share, in line with consensus estimates [24] - Property level NOI was $70 million, which was $1 million below forecast due to increased operating costs [25] - The capital ratio for the year was 9.5%, slightly better than the 2025 business plan midpoint, marking the lowest capital ratio range in five years [4] Business Line Data and Key Metrics Changes - The wholly owned core portfolio was 88.3% occupied and 90.4% leased, with forward leasing increasing 26% to 229,000 sq ft [3] - Tenant retention ended at 64%, exceeding the target range of 59%-61% [4] - Leasing activity for the year was approximately 1.6 million sq ft, with 415,000 sq ft of leases executed in Q4 [4] Market Data and Key Metrics Changes - In Philadelphia, the largest sub-market, occupancy reached 95% and leasing was at 97%, with only 6% of space rolling through 2028 [7] - The company captured 30% market share of new leasing activity in Market West and University City, significantly outperforming the previous 15% share [8] - Overall, the Pennsylvania suburbs were 89.4% leased, with Radnor at 91% [9] Company Strategy and Development Direction - The 2026 business plan focuses on returning to earnings growth, stabilizing One Uptown and 3151, and accelerating sales to pay down debt [16] - The company plans to reduce overall leverage and improve liquidity through a sales program targeting $280 million to $300 million [20] - Recapitalization of joint ventures is anticipated in the second half of 2026, with a focus on maintaining a minority stake [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving real estate market conditions and expects earnings growth from the development pipeline to translate into results in 2026 [37] - The company anticipates positive net absorption for the first time in several years, indicating an improving market [18] - Management noted that the entire portfolio is perceived as undervalued, with a focus on strategic asset sales to crystallize value [46] Other Important Information - The company has no outstanding balance on its $600 million unsecured line of credit and $32 million in cash at the end of the quarter [9] - The company plans to refinance higher-priced bonds, which could save approximately $0.10 per share in interest expense [10] - G&A expenses are projected to decrease due to lower compensation costs, with total interest expense expected to increase [29] Q&A Session Summary Question: What is the hurdle for refinancing bonds? - Management indicated that the focus is on executing the sales program to generate liquidity and improve credit metrics before considering bond refinancing [39] Question: How will the $125 million earmarked for debt or share repurchase be allocated? - The primary focus is on reducing leverage first, with share buybacks considered only after achieving debt reduction objectives [40] Question: Is there a part of the portfolio that is undervalued? - Management believes the entire portfolio is undervalued and is evaluating which assets to sell based on market conditions and growth potential [46] Question: What is the status of the life science incubator space? - There are signs of activity in the life science sector, with some companies expanding, but management is waiting for further growth before making significant commitments [50] Question: What is the pipeline for leasing activity? - The company has a robust pipeline of 1.5 million sq ft, with strong demand in CBD Philadelphia and University City [63]

Financial Data and Key Metrics Changes - The company reported a fourth quarter net loss of $36.9 million, or $0.21 per share, with FFO totaling $14.6 million, or $0.08 per diluted share, in line with consensus estimates [23][27] - Property level NOI was $70 million, slightly below forecast due to increased operating costs [23] - The company anticipates 2026 FFO at the midpoint to be $0.55 per diluted share, representing a 5.8% increase compared to 2025 [27][29] Business Line Data and Key Metrics Changes - The wholly owned core portfolio is 88.3% occupied and 90.4% leased, with leasing activity for the year approximating 1.6 million sq ft [3][4] - New leasing mark-to-market was strong at 13%, with a GAAP mark-to-market of 4.2% [5][27] - The contribution from unconsolidated joint ventures is expected to improve from an $11 million loss in 2025 to a $1 million contribution in 2026 [28] Market Data and Key Metrics Changes - The company captured 30% market share of all new leasing activity in Market West and University City, significantly outperforming its 15% target [7][8] - In Philadelphia, the largest sub-market, occupancy is at 95% and leasing is at 97%, with only 6% of space rolling through 2028 [6] - The Pennsylvania suburbs are 89.4% leased, with Radnor at 91% [9] Company Strategy and Development Direction - The 2026 business plan focuses on returning to earnings growth, stabilizing One Uptown and 3151, and accelerating sales to reduce debt [15][21] - The company plans to maintain minimal balances on its $600 million unsecured line of credit and aims to return to investment-grade metrics [10][22] - The sales program is projected to generate between $280 million and $300 million, primarily in the first half of the year [20][31] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating platform enables the company to capitalize on improving real estate market conditions, with expectations for further improvement in 2027 [38] - The company is optimistic about the leasing activity and market dynamics, particularly in CBD Philadelphia and University City [62] - Management emphasized the importance of deleveraging while also considering share buybacks as the stock is viewed as undervalued [80][82] Other Important Information - The company has no unsecured bonds maturing until November 2027 and plans to refinance higher-priced bonds to reduce interest costs [10][25] - The company is actively evaluating recapitalization of joint ventures, with plans to maintain a minority stake in future developments [33][60] - The anticipated renovation costs for redeveloping an existing building in Austin are estimated to be between $30 million and $40 million [72] Q&A Session Summary Question: What is the hurdle for refinancing bonds? - Management indicated that the focus is on executing the sales program to generate liquidity and improve credit metrics before considering bond refinancing [40][41] Question: How will the $125 million earmarked for debt or share repurchase be allocated? - The primary objective is to reduce leverage first, with share buybacks being considered opportunistically after achieving debt reduction goals [42][43] Question: Are there specific properties being targeted for sale? - Management believes the entire portfolio is undervalued and is evaluating which assets to sell based on market conditions and growth potential [46][48] Question: What is the status of the life science incubator space? - There are signs of activity and expansion in the life science sector, particularly in cell and gene therapy, with a healthy pipeline of tenants [51][52] Question: What is the timeline for joint venture recapitalizations? - Recapitalizations are planned for the second half of 2026, with management monitoring market conditions to optimize timing [56][60]

S U P P L E M E N T A L INFORMATION PACKAGE 2025 FOURTH QUARTER QUALITY • INNOVATION • INTEGRITY • COMMUNITY Table of Contents | | Page | | --- | --- | | Executive Summary | 1 | | 2025/2026 Business Plan Trend Line | 3 | | Development Summary | 8 | | Balance Sheet and Liquidity | 13 | | Land Inventory | 14 | | Property Activity | 15 | | Net Operating Income Composition | 16 | | Regional Property Overview | 17 | | Leasing Activity | 18 | | Lease Expiration Analysis | 20 | | Top Twenty Tenants | 22 | | Portfo ...

分组1 - Brandywine Realty Trust reported quarterly funds from operations (FFO) of $0.08 per share, missing the Zacks Consensus Estimate of $0.15 per share, representing a -46.67% surprise [1] - The company posted revenues of $120.95 million for the quarter ended December 2025, which was 1.03% below the Zacks Consensus Estimate and a decrease from $121.9 million year-over-year [2] - The stock has underperformed the market, losing about 3.1% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] 分组2 - The current consensus FFO estimate for the coming quarter is $0.13 on revenues of $123.93 million, and for the current fiscal year, it is $0.58 on revenues of $510.38 million [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is in the bottom 27% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] - The estimate revisions trend for Brandywine Realty Trust was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6]

Core Insights - Brandywine Realty Trust reported a net loss of $36.9 million or $0.21 per share for Q4 2025, an improvement from a net loss of $44.8 million or $0.26 per share in Q4 2024 [9][11] - The company achieved a Funds from Operations (FFO) of $14.6 million or $0.08 per diluted share in Q4 2025, down from $29.9 million or $0.17 per diluted share in Q4 2024 [10][12] - The company plans to recapitalize its remaining development joint ventures and improve liquidity in 2026, with an FFO guidance range of $0.51 to $0.59 per diluted share [3][19] Financial Results - Total revenue for Q4 2025 was $120.95 million, slightly down from $121.91 million in Q4 2024 [39] - Operating expenses for Q4 2025 were $99.56 million, compared to $102.26 million in Q4 2024 [39] - The company recognized a $12.2 million loss on early extinguishment of debt related to a $245 million loan repayment [7][14] Portfolio Performance - The core portfolio was 88.3% occupied and 90.4% leased as of December 31, 2025 [17] - The tenant retention ratio was 54% in Q4 2025 and 64% for the full year 2025 [16] - Same Store Net Operating Income (NOI) increased by 2.4% on an accrual basis and 3.2% on a cash basis [13] Leasing Activity - In Q4 2025, the company signed new and renewal leases totaling 157,000 square feet in its wholly owned portfolio, with a total of 415,000 square feet including unconsolidated joint ventures [15] - For the full year 2025, leasing activity totaled approximately 790,000 square feet in the wholly owned portfolio [17] - Rental rate mark-to-market increased by 20.9% on an accrual basis [16] Capital and Financing - The company closed on a $50.5 million C-PACE financing for a development project at 3151 Market Street, with an interest rate of 7.31% [14] - Brandywine issued $300 million of 6.125% guaranteed notes due 2031, with net proceeds used to repay secured debt and for general corporate purposes [14] - As of December 31, 2025, the company had no outstanding balance on its $600 million unsecured revolving credit facility [14]

Core Insights - The announcement of $87.3 million in C-PACE financing for 3151 Market Street in Philadelphia marks the largest C-PACE financing in Pennsylvania's history and the first for a publicly traded REIT [2][5] Company Insights - Nuveen Green Capital (NGC) is a leader in sustainable commercial real estate financing solutions, having originated over $5 billion in financing [6] - Brandywine Realty Trust (BDN) is a major publicly traded real estate investment trust focused on urban, town center, and transit-oriented properties, managing a portfolio of 120 properties totaling 18.9 million square feet as of September 30, 2025 [7] Project Insights - The financing will support the development of 3151 Market Street, a 494,530-square-foot, 12-story lab and office building designed for flexibility and sustainability, located in the Schuylkill Yards development [3][4] - C-PACE financing will enable Brandywine Realty Trust to preserve conventional debt capacity while supporting sustainable building development, including upgrades to building systems and water conservation measures [4][5] Economic and Sustainability Impact - The project aligns with Philadelphia's sustainability and economic development goals, contributing to the city's growth as a hub for life sciences and biotechnology [5] - The Philadelphia Energy Authority (PEA) is involved in administering the financing, which is part of a broader initiative to create a clean energy economy and generate jobs [8]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in Real Estate Sector - Brandywine Realty Trust (NYSE: BDN) has a dividend yield of 15.18%. Analysts have downgraded the stock from Overweight to Sector Weight and from Neutral to Underweight, with accuracy rates of 57% and 63% respectively. The company was replaced in the S&P SmallCap 600 by Versant Media Group Inc. [3][6] - Park Hotels & Resorts Inc (NYSE: PK) has a dividend yield of 8.63%. Truist Securities maintained a Hold rating and increased the price target from $11 to $12, while UBS maintained a Neutral rating and raised the price target from $10 to $11, with accuracy rates of 67% and 74% respectively. The company is set to report financial results for Q4 on Feb. 19, 2026 [4][6] - RLJ Lodging Trust (NYSE: RLJ) has a dividend yield of 7.79%. Analysts downgraded the stock from Outperform to Neutral and cut the price target from $9 to $7.5, while maintaining a Hold rating and raising the price target from $7 to $8, with accuracy rates of 56% and 66% respectively. The company will report financial results for Q4 on Feb. 26, 2026 [5][6]

Group 1 - Brandywine Realty Trust announced the tax characteristics of its 2025 distributions, which will be reported on Form 1099-DIV [1] - The total gross distribution per share for 2025 is $0.530000, with 97.2% classified as non-dividend distribution [1] - The total capital gain distribution amounts to $0.014974, representing 2.8% of the total distribution [1] Group 2 - Brandywine Realty Trust is one of the largest publicly traded full-service integrated real estate companies in the U.S., focusing on Philadelphia, PA, and Austin, TX [2] - As of December 31, 2025, the company owns, develops, leases, and manages a portfolio comprising 120 properties and 20.0 million square feet [2] - The company's purpose is to shape, connect, and inspire the world through its expertise and community relationships [2]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Company Ratings and Analyst Insights - Brandywine Realty Trust (NYSE: BDN) has a dividend yield of 10.63%. Keybanc analyst Todd Thomas downgraded the stock from Overweight to Sector Weight on Dec. 4, 2025, with an accuracy rate of 56%. JP Morgan analyst Anthony Paolone downgraded it from Neutral to Underweight on Nov. 24, 2025, with an accuracy rate of 64% [6] - Park Hotels & Resorts Inc (NYSE: PK) has a dividend yield of 9.23%. Truist Securities analyst Patrick Scholes maintained a Hold rating and raised the price target from $11 to $12 on Dec. 4, 2025, with an accuracy rate of 67%. UBS analyst Robin Farley maintained a Neutral rating and raised the price target from $10 to $11 on Oct. 6, 2025, with an accuracy rate of 77% [6] - Apple Hospitality REIT Inc (NYSE: APLE) has a dividend yield of 7.81%. Baird analyst Michael Bellisario maintained an Outperform rating and cut the price target from $14 to $13 on Oct. 3, 2025, with an accuracy rate of 55%. Cantor Fitzgerald analyst Richard Anderson initiated coverage with an Overweight rating and a price target of $14 on Oct. 1, 2025, with an accuracy rate of 56% [6] Group 2: Recent News - Brandywine Realty Trust was replaced by Versant Media Group Inc. in the S&P SmallCap 600 on Jan. 6, 2026 [6] - Park Hotels announced the sale of non-core properties for approximately $198 million on Dec. 9, 2025 [6] - Apple Hospitality REIT reported positive quarterly sales on Nov. 3, 2025 [6]