Brandywine Realty reports Q3 FFO 16c, consensus 17c

Reports Q3 revenue $106.15M, consensus $118.28M. “We are pleased with our 2025 business plan progress highlighted by achieving the midpoint of our speculative revenue target and many of our operating objectives,” said CEO Gerard Sweeney. “We continue to have one of the office sectors lowest forward lease expiration schedule with only 4.9% of revenues expiring through 2026. The pipeline for our commercial development projects remains strong at 1.6 million square feet with 75,000 in active lease negotiations…Liquidity remains in excellent shape with no outstanding balance on our $600M unsecured line of credit and $75M of cash on hand. We recently issued $300M of 5 year unsecured notes at 6.125% and used the majority of those proceeds to prepay a $245M secured loan scheduled to mature in February 2028. As a result we unencumbered approximately $45M of net operating income and, once again, have a fully unencumbered wholly owned operating portfolio. This early prepayment will generate a Q4 earnings charge approximating $12.3M or 7c per share…While we believe additional recapitalizations will occur, the timing of those transactions has been delayed. We are revising and narrowing our 2025 FFO guidance range to 51c-53c per share to reflect the 7c per share prepayment charge and the impact of the development recapitalization occurring in late 2025 or 2026.”