Brandywine Realty Trust (BDN) Citi’s Miami Global Property CEO Conference 2026 summary

Strategic priorities and business outlook

• Focus on high-quality operating portfolio, improving markets, and balance sheet simplification in 2024, with plans to further reduce leverage and improve net debt to EBITDA through asset sales and joint venture buyouts by 2026.

• Operational stability with anticipated positive absorption and occupancy growth of 120 basis points by 2026, driven by strong leasing activity and higher same-store growth.

• Asset sales target of $290–$300 million at an 8% cap rate, with proceeds allocated to debt reduction, bond buybacks, and potential share repurchases.

• Recapitalization of joint ventures and conversion of select assets to residential use are underway, with flexibility to pivot between office, life science, and residential based on market demand.

• Long-term goal to regain investment grade rating by achieving fixed charge coverage above 2x and net debt to EBITDA in the low 7s.

Market performance and leasing trends

• Philadelphia CBD and University City remain strong, with 95% occupancy, 97% leased, and 54% of new leasing activity in 2025 signed at company properties.

• Net effective rents in Philadelphia CBD and University City have grown over 5% annually for five years; tour volume up 50% in 2025, with a 56% tour-to-proposal and 38% proposal-to-lease conversion rate.

• Austin faces a 400 basis point occupancy decline but shows increased tour volume and growing interest from technology and financial service firms.

• Life science and office leasing at Schuylkill Yards and Radnor Life Science Center are progressing, with net effective rents equivalent between the two segments.

• Tenant retention projected at 56–57% by number in 2026, with positive net absorption expected despite some known move-outs.

Development, asset management, and capital allocation

• Uptown ATX development benefits from increased density approvals and a new train station opening in Q1 2027, supporting redevelopment and renovation plans for vacated IBM space.

• 3025 Market Street and 250 Radnor developments are coming online, contributing incremental NOI to offset IBM's departure in 2027.

• 3151 Schuylkill Yards, designed for life science and office, has a 1.1 million sq ft pipeline, with revenue contribution expected in 2027.

• Boutique hotel at 165 King of Prussia to open in May, with plans to stabilize and monetize the asset via a capital event in 2027 or 2028.

• Dispositions span Austin, Northern Virginia, and Pennsylvania, with a mix of fully leased and under-leased properties attracting both institutional and opportunistic buyers.