Brandywine Realty Trust (BDN) investor relations material

Executive summary

• Q2 2025 saw strong leasing activity, with a 35% increase over Q1 and 460,674 sq ft executed, including a 100,000 sq ft lease at One Uptown and high occupancy at Solaris and Avira residential projects.

• Ended Q2 at 88.6% occupied and 91.1% leased, with tenant retention at 81.9% and positive net absorption expected in Q3.

• Net loss of $89 million or $0.51 per share, driven by $63.4 million in non-cash impairments related to Austin assets and lower rental income from property sales.

• Development pipeline expanded by over 1 million sq ft, with major projects advancing in Philadelphia and Austin, including Schuylkill Yards and a $60M Radnor hotel.

• Liquidity remains robust, with $122.6–$123 million cash on hand and no outstanding balance on a $600 million unsecured line of credit after a $150 million bond issuance.

Financial highlights

• Q2 2025 net loss was $88.9–$89 million or $0.51 per share, including $63.4 million in impairments from Austin.

• Q2 FFO totaled $26.1 million or $0.15 per diluted share, down from $38 million or $0.22 per share in Q2 2024.

• Q2 CAD payout ratio was 176%, elevated due to deferred tenant allowances and unpaid preferred dividends.

• Asset sales in Q2 and anticipated Q3 total nearly $73 million at a 6.9% cap rate and $212 per sq ft.

• Same Store NOI increased 1.0% GAAP and 6.3% cash year-over-year for Q2 2025.

Outlook and guidance

• 2025 FFO guidance narrowed to $0.60–$0.66 per share, with year-end core occupancy expected at 88–89%.

• Net loss per share guidance revised to $(0.96)–$(0.90); FFO midpoint remains above consensus.

• No property acquisitions or share buybacks anticipated; share count to remain at ~179.5 million.

• Capital plan for 2025 totals $215 million, with $81 million incremental cash use projected.

• Rental rates projected to increase 3.8–4.2% combined, but Austin expected to see a 9–10% decline.