Brandywine Realty Trust (BDN) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 results exceeded or met business plan expectations, with speculative revenue surpassing guidance midpoint by $1 million and tenant retention reaching 85%, especially in Philadelphia CBD and University City.

• Completed $208 million in asset sales, raising the full-year target to $305 million, and opened The Brandywine hotel in Radnor, PA.

• Portfolio comprised 59 properties totaling 11.5 million net rentable square feet, with core focus on Philadelphia, Austin, and Pennsylvania suburbs.

• Portfolio occupancy improved to 89.1% with 353,000 sq ft of leasing activity in Q2 2026.

• Extended unsecured credit facility to December 2026 and completed refinancing of Avira with a $90 million, 7-year loan at 5.8%.

Financial highlights

• Q2 2026 net loss attributable to common shareholders was $31.7 million ($0.18 per share), improved from $89.0 million loss in Q2 2025.

• Funds from Operations (FFO) for Q2 2026 was $23.6 million ($0.13 per share), with a payout ratio of 62%.

• Total revenue for Q2 2026 was $128.9 million, up 7.0% year-over-year.

• Net debt to annualized quarterly EBITDA was 9.0x; 94.3% of $2.62 billion debt was fixed-rate.

• Same store NOI margin increased 0.5% (accrual) and 1.9% (cash) year-over-year for Q2 2026.

Outlook and guidance

• 2026 FFO guidance narrowed to $0.53–$0.57 per diluted share; loss per share guidance improved to $(0.45)–$(0.41).

• Year-end core occupancy expected at 89–90%, with 90–91% leased.

• $120–140 million of additional dispositions and share/bond repurchases planned for H2 2026.

• Management expects continued macroeconomic headwinds but believes liquidity and portfolio support stable operations.

• Focus remains on increasing occupancy, rental rates, and prudent capital allocation.