Brandywine Realty Trust (BDN)
NYSE:BDN
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Brandywine Realty
(NYSE:BDN)
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Rating:51Neutral
Price Target:
$2.50
▼(-4.94% Downside)
Action:ReiteratedDate:02/24/26
The score is held down primarily by weak financial performance (declining revenue, ongoing net losses, and significantly higher leverage), which outweighs the improvement in cash generation. Technicals are modestly constructive and valuation is helped by a very high dividend yield, but the earnings outlook remains execution-dependent due to refinancing, asset-sale timing, and higher interest expense.
Positive Factors
Leasing Momentum & Occupancy
Sustained leasing momentum and high occupancy reduce vacancy risk and support recurring rental cash flow. Forward leasing up 26% plus strong tour-to-proposal and conversion metrics indicate durable demand and shorter vacancy windows, improving near-term NOI and stabilizing cash generation.
Negative Factors
Elevated Leverage & Weak Coverage
Materially higher leverage and thin fixed-charge coverage constrain financial flexibility and amplify refinancing risk. With net debt/EBITDA near 8x and low coverage, interest cost shocks or slower asset-sale proceeds could force distressed disposals or cutbacks to development and dividends.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing Momentum & Occupancy
Sustained leasing momentum and high occupancy reduce vacancy risk and support recurring rental cash flow. Forward leasing up 26% plus strong tour-to-proposal and conversion metrics indicate durable demand and shorter vacancy windows, improving near-term NOI and stabilizing cash generation.
Read all positive factors
Brandywine Realty (BDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$458.22M
Dividend Yield17.55%
Average Volume (3M)2.91M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-5.52%
EPS Growth40.27%
CountryUS
Employees285
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.21
Shares Outstanding173,711,850
10 Day Avg. Volume2,821,103
30 Day Avg. Volume2,907,957
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.64
Price to Sales (P/S)1.05
P/FCF Ratio9.07
Enterprise Value/Market Cap6.57
Enterprise Value/Revenue6.21
Enterprise Value/Gross Profit9.96
Enterprise Value/Ebitda23.26
Forecast
1Y Price Target
$3.17Price Target Upside20.53% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)-0.69
Revenue Forecast (FY)$466.74M
Brandywine Realty Business Overview & Revenue Model
Company Description
Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Austin and Washington, D.C. markets. Organized as a real estate ...
How the Company Makes Money
BDN primarily makes money through rental revenue earned from leasing office space and other commercial space in its owned properties to tenants under lease agreements. This includes recurring base rent and, where applicable, reimbursements and rec...
Brandywine Realty Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging operational momentum—strong leasing activity, market-share gains in Philadelphia, rent growth, improved tour and conversion metrics, and 2026 FFO guidance showing mid-single-digit growth—paired with material near-term financial and execution challenges. Key concerns are elevated leverage and fixed-charge pressure (net debt/EBITDA ~8x), rising interest expense, reliance on $280M–$300M of asset sales and successful refinancing of near-term loans, and an underperforming Austin submarket. Management articulated clear plans (asset sales, recapitalizations, refinancing, and cost controls) that should address many weaknesses if executed, but outcomes are execution-dependent.Positive Updates
Strong Occupancy and Leasing Activity
Wholly-owned core portfolio 88.3% occupied and 90.4% leased; annual leasing ~1.6M sq ft; Q4 executed 415k sq ft (157k wholly-owned, 257k JV); forward leasing up 26% to 229k sq ft with most occupancy in next two quarters.
Negative Updates
Q4 Net Loss and One-Time Charges
Q4 net loss $36.9M (-$0.21 per share); Q4 FFO $14.6M ($0.08) in line with consensus but impacted by a one-time early CMBS extinguishment charge of $12.2M (~$0.07 per share).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Occupancy and Leasing Activity
Wholly-owned core portfolio 88.3% occupied and 90.4% leased; annual leasing ~1.6M sq ft; Q4 executed 415k sq ft (157k wholly-owned, 257k JV); forward leasing up 26% to 229k sq ft with most occupancy in next two quarters.
Read all positive updates
Company Guidance
The company guided 2026 FFO of $0.51–$0.59 per share (midpoint $0.55, +5.8% vs. 2025) on roughly $292 million of property-level GAAP NOI (a $30 million YoY increase, including ~$17M from consolidated 3025 JFK and a $7M decrease from 2025 asset sales/move-outs), with spec revenue targeted at $17–$18 million (about $13M or ~75% secured toward the midpoint). Operating assumptions include year-end occupancy up ~120 bps, positive net absorption, GAAP mark-to-market of 5–7% (CBD/PA suburbs 8–10%), cash mark-to-market of -2% to 0%, leasing capital of 12–13%, same-store GAAP growth -1% to +1% (cash 0%–2%), and G&A of $36–37M. Financial and capital targets call for ~ $280–$300M of dispositions (~$290M midpoint) at ~8% average cap rates (majority closing H1), a $475M 2026 capital plan, CAD payout ~70%–90% (improving H2), year-end core net debt/EBITDA ~8.0–8.4x (projected combined net debt/EBITDA and fixed charge coverage ~1.8–2.0x), total interest expense ≈$170M, ~180M shares outstanding, $32M cash on hand today and roughly $52M expected EOY, and plans to refinance the $178M 3025 construction loan (targeting ~200 bps savings) while prioritizing debt reduction before opportunistic share repurchases.Brandywine Realty Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
28
Negative
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 484.45M | 505.52M | 514.65M | 506.10M | 486.82M |
| Gross Profit | -53.60M | 318.19M | 324.70M | 311.70M | 298.51M |
| EBITDA | 137.75M | 103.00M | 91.29M | 303.89M | 255.97M |
| Net Income | -179.48M | -195.91M | -196.79M | 53.82M | 12.29M |
Balance Sheet | |||||
| Total Assets | 3.59B | 3.49B | 3.73B | 3.87B | 3.85B |
| Cash, Cash Equivalents and Short-Term Investments | 62.30M | 90.23M | 58.32M | 17.55M | 27.46M |
| Total Debt | 2.58B | 2.24B | 2.16B | 2.08B | 1.88B |
| Total Liabilities | 2.79B | 2.45B | 2.41B | 2.24B | 2.14B |
| Stockholders Equity | 792.73M | 1.04B | 1.32B | 1.63B | 1.69B |
Cash Flow | |||||
| Free Cash Flow | 55.82M | 51.37M | 20.81M | -53.71M | 55.75M |
| Operating Cash Flow | 116.70M | 181.13M | 177.27M | 209.31M | 190.87M |
| Investing Cash Flow | -206.28M | -120.19M | -174.91M | -190.59M | -100.31M |
| Financing Cash Flow | 55.71M | -32.30M | 46.79M | -28.63M | -109.34M |
Brandywine Realty Technical Analysis
Negative
2.63
Price Trends
2.87
Negative
2.92
Negative
3.34
Negative
Market Momentum
-0.10
Negative
42.70
Neutral
46.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDN, the sentiment is Negative. The current price of 2.63 is below the 20-day moving average (MA) of 2.70, below the 50-day MA of 2.87, and below the 200-day MA of 3.34, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 46.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDN.
Brandywine Realty Risk Analysis
Brandywine Realty disclosed 48 risk factors in its most recent earnings report. Brandywine Realty reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brandywine Realty Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $1.02B | 73.21 | 0.98% | 9.58% | 11.02% | -30.91% | |
51 Neutral | $458.22M | ― | -20.40% | 17.55% | -5.52% | 40.27% | |
51 Neutral | $848.88M | -6.00 | -4.45% | 6.09% | -1.23% | 9.10% | |
46 Neutral | $342.88M | -0.88 | -17.84% | ― | -7.89% | -15.88% | |
45 Neutral | $66.36M | -3.35 | -7.25% | 4.71% | -14.68% | -13.53% |
* Real Estate Sector Average
BDN
Brandywine Realty
2.65
-0.72
-21.43%
FSP
Franklin Street Properties
0.68
-0.85
-55.35%
HPP
Hudson Pacific Properties
6.01
-10.58
-63.77%
PDM
Piedmont Office
6.79
0.24
3.66%
DEA
Easterly Government Properties
22.15
0.24
1.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.