| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 128.92 | 1.5% | 6.9% |
| Total Income | 128.92 | 1.5% | 6.9% |
| Expenditure | 109.53 | 12.7% | 32.3% |
| PBT | -31.51 | 35.4% | 64.5% |
| Net Profit | -31.41 | 35.4% | 64.6% |
| OPM | 15.09% | 13.90pp | 49.37pp |
| NPM | -24.36% | 13.90pp | 49.18pp |
| EPS | -0.18 | 35.7% | 64.7% |
Brandywine Realty Trust Announces Second Quarter 2026 Results and Narrows 2026 Guidance
24 Jul 2026 · 24 Jul, 1:17 am
Summary
Brandywine Realty Trust reported a net loss of $(31.7) million, or $(0.18) per diluted share, for the second quarter of 2026, an improvement from the $(89.0) million net loss in the prior year, which included significant impairment charges. Funds from Operations (FFO) were $23.6 million, or $0.13 per diluted share, down from $26.1 million in Q2 2025. The company highlighted progress on its 2026 Business Plan, including raising speculative revenue guidance and increasing projected full-year tenant retention. Management also noted significant progress on asset sales, closing $208 million to date and increasing the target to $305 million, with proceeds primarily used to lower debt and repurchase stock. The company is narrowing its 2026 FFO guidance to $0.53 - $0.57 per diluted share.
Key Highlights
- 1
Brandywine Realty Trust reported a net loss available to common shareholders of $(31.7) million, or $(0.18) per diluted share for the second quarter of 2026.
- 2
Funds from Operations (FFO) attributable to common shareholders and units totaled $23.6 million, or $0.13 per diluted share, for the second quarter of 2026.
- 3
The core portfolio was 89.1% occupied and 90.6% leased as of June 30, 2026, and July 15, 2026, respectively.
- 4
Same Store Net Operating Income (NOI) increased 0.5% on an accrual basis and 1.9% on a cash basis for the second quarter of 2026.
- 5
The company completed the sale of three office properties for a total of $207.5 million in the second quarter and early July 2026.
- 6
Brandywine Realty Trust is narrowing its 2026 FFO guidance to $0.53 to $0.57 per diluted share from $0.52 to $0.58 per diluted share.
- 7
The company has no outstanding balance on its $600 million unsecured line of credit and $35 million of cash-on-hand as a result of recent sales activity.
Management Comments
Gerard H. Sweeney
We are pleased with our second quarter progress on our 2026 Business Plan highlighted by raising our speculative revenue midpoint guidance by 5.7%, and achieving 99% of the revised target. We have also experienced higher tenant renewals and more tenant expansions and based on our second quarter retention rate of 85%, we have increased our projected full year tenant retention midpoint by 10%. Turning to capital markets, we have now closed $208 million of portfolio asset sales and have increased our asset sales target from $290 million to $305 million. We expect the remaining asset sales to close later this quarter. Consistent with our business plan, we plan to use most of the proceeds from these asset sales to lower our outstanding debt and, to a smaller extent, repurchase our common stock. We also completed the refinancing of Avira with a 7-year, $90 million financing at a 5.8% annual interest rate and repaid our $178 million construction loan. We remain in an excellent liquidity position, and after our recent sales activity, we have no outstanding balance on our $600 million unsecured line of credit and $35 million of cash-on-hand. Based on the progress we have made on our 2026 Business Plan, we are narrowing our FFO range from $0.52 to $0.58 per share to $0.53 to $0.57 per share.
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