Brandywine Realty Trust Adjusts Guidance to Reflect Third Quarter Performance

PHILADELPHIA, Oct. 21, 2026 /CourierPR/ -- Brandywine Realty Trust (NYSE:BDN), a leading real estate investment trust (REIT), has reported its financial and operating results for the three and nine-month periods ended September 30, 2026. The company's management highlighted several key achievements and developments during the quarter, including a significant increase in its speculative revenue target and substantial progress in its capital markets plan.

In a statement, Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty Trust, expressed satisfaction with the company's progress. He noted that the company had raised the midpoint of its speculative revenue target to $19.5 million, or 11.4% higher than the initial business plan, which was achieved by the end of the second quarter. Additionally, the company has executed $681 million of sales, exceeding its $305 million business plan target, with the sale of Solaris, its residential project in Austin, Texas, accounting for $136 million of the total sales.

One Uptown, a key property in Brandywine's portfolio, has also made significant strides. The property has now reached a leasing rate of 97%, a notable achievement in the company's portfolio. During the quarter, Brandywine Realty Trust reduced its combined debt by $390 million, primarily through the repurchase of $140 million of its 2028 and 2029 Bonds at a weighted-average rate of 8.67%. Following these closings, the company had $176 million of cash on hand and no outstanding balance on its $600 million unsecured line of credit.

Brandywine Realty Trust has also made notable progress in its capital markets activities, with the company's leverage metrics continuing to improve. The company's Net Debt/EBITDA ratio was 7.6x at the end of the quarter, compared to 9.0x in the previous quarter. In an effort to further reduce debt, the company purchased 4.7 million shares of its common stock during the quarter, reducing its outstanding balance on the $600 million unsecured line of credit.

In terms of financial performance, Brandywine Realty Trust reported a net loss of $(22.3) million for the third quarter, which included an impairment charge of $29.1 million, net gains on the disposition of real estate totaling $55.7 million, and a loss on the early extinguishment of debt of $15.4 million. Despite these challenges, Core Funds from Operations (Core FFO) for the quarter amounted to $24.5 million, or $0.14 per diluted share, excluding the loss on the early extinguishment of debt.

Looking ahead, Brandywine Realty Trust has adjusted its 2026 FFO guidance range from $0.53 to $0.57 per diluted share to a Core FFO range of $0.54 to $0.56 per diluted share, which excludes the losses on the early extinguishment of debt. The company's 2026 earnings and FFO guidance range has also been adjusted from $(0.45) - $(0.41) per share to $(0.64) - $(0.62) per share, reflecting the loss associated with the $240 million sales transaction in Philadelphia, Pennsylvania, and the loss on the early extinguishment of debt recorded in the third quarter.

In summary, Brandywine Realty Trust has demonstrated significant progress in its capital markets activities and debt reduction, while also maintaining a strong focus on its core business. The company's management remains optimistic about its future prospects, with a continued emphasis on improving its leverage metrics and maintaining high levels of occupancy and leasing.