Brandywine Realty Trust (BDN) investor relations material

Strategic priorities and business outlook

• Focus on high-quality operating portfolio, relative valuation, and balance sheet simplification in 2024, with plans to improve leverage and achieve investment grade rating by reducing net debt to EBITDA to low 7s over multiple years.

• Anticipates positive absorption and occupancy improvement by 120 basis points by 2026, with higher same-store growth and a 5%-7% positive GAAP mark-to-market company-wide, and 8%-10% in core Philadelphia markets.

• Plans to sell $290-$300 million in assets across all markets at an 8% cap rate, with proceeds used to reduce leverage, buy back high-cost bonds, refinance loans, and potentially repurchase stock.

• Two remaining Austin joint ventures to be bought out by end of 2026, further simplifying the balance sheet and reducing debt attribution.

• Targeting a shift in portfolio mix, aiming for up to 25% life science exposure, but timing is dependent on market demand and ability to pivot between product types.

Market performance and leasing trends

• Philadelphia CBD remains strong, with 95% occupancy and 97% leased, generating 48% of revenues; 54% of new leasing activity in 2025 was signed at their properties.

• Net effective rents in Philadelphia CBD and University City have grown over 5% annually for five years; tour volume up 45% in 2025, with a 56% tour-to-proposal and 38% proposal-to-lease conversion rate.

• Flight to quality drives tenants from older buildings to higher quality inventory, with broad-based demand and notable uptick from financial service firms and professional firms, including Am Law 100 firms.

• Austin faces a 400 basis point occupancy hit but is seeing increased tour volume and more tech firms seeking larger spaces.

• Retention rates projected at 56%-57% by tenant count in 2026, with positive net absorption expected despite some known move-outs.

Development, asset management, and capital allocation

• Uptown ATX development has increased density approvals and flexibility, with renovations and a pipeline of 800,000 sq ft users; IBM vacating in 2027 will trigger redevelopment and NOI bridge from other projects.

• 3151 Schuylkill Yards has a 1.1 million sq ft pipeline, split 60% office/40% life science; revenue expected in 2027, with net effective rents equivalent between office and life science uses.

• Two remaining Uptown ATX joint ventures (residential and office) to be recapped by end of 2026, with recap timing tied to leasing stabilization and renewal cycles.

• Boutique hotel at 165 King of Prussia to open in May, targeting stabilization and a capital event (sale) in 2027 or 2028.

• Evaluating residential conversions for select assets, including 300 Delaware and Austin projects, with Historic Tax Credit certification pursued for some.