Brandywine Realty Trust (BDN) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Market trends and portfolio performance

• Positive return-to-office trends and a strong flight to quality are driving demand, with historically low supply growth forecasted through 2029.

• Portfolio is highly transit-oriented, outperforming peers in occupancy, mark-to-market, and capital ratios, with less than 5% lease rollover expected over the next eight quarters.

• Built-in product diversification allows for future development: 42% residential, 27% life science, 20% office, and 10% other uses.

• Development pipeline, once stabilized, is projected to increase NOI by 15%-20%.

• 2025 leasing targets: 89%-90% leased, 88%-89% occupied, with spec revenue of $27M-$28M, 83% already executed.

Operational highlights and leasing activity

• Cash same-store growth projected at 1%-3%, with leasing mark-to-market at 3%-4% and capital ratios between 9%-11%.

• 62% of 2024 deal activity and 84% in Philly CBD were flight-to-quality transactions.

• Captured 49% of all office transactions in Philadelphia, with Austin showing slow but positive absorption.

• Operating performance is stable with limited rollover and a growing tenant pipeline.

• Key developments in Schuylkill Yards (Philadelphia) and Uptown (Austin) are progressing toward stabilization.

Financial position and capital allocation

• Solid liquidity with no bond maturities until 2027; plans to access unsecured markets and grow unencumbered asset pool.

• Minimal or no balance expected on line of credit for several years; $50M in sales planned for 2025, with potential to exceed target.

• Capital allocation prioritizes leasing up development projects and strengthening the balance sheet through selective property sales.

• Recent asset sales averaged cap rates of 7%-8%, with buyers including syndicators, family offices, and some user sales.

• Improved debt capital availability and stronger CMBS market are supporting transactions.