Brandywine Realty (BDN) AI Stock Analysis

• Market Cap: $738.67M
• Dividend Yield: 13.99%
• Average Volume (3M): 2.59M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• Revenue Growth: -3.05%
• EPS Growth: -94.96%
• Country: US
• Employees: 285
• Sector: Real Estate
• Sector Strength: 49
• Industry: REIT - Office
• EPS (TTM): 0.44
• Shares Outstanding: 173,699,040
• 10 Day Avg. Volume: 2,271,314
• 30 Day Avg. Volume: 2,586,846
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.02
• Enterprise Value/Revenue: 5.99
• Enterprise Value/Gross Profit: 8.65
• Enterprise Value/Ebitda: -35.16
• 1Y Price Target: $4.75
• Price Target Upside: 10.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: $4.50 ▲(4.90% Upside)

Brandywine Realty's overall stock score reflects its financial challenges, with declining revenue and significant net losses being the most impactful factors. Technical analysis shows mixed signals, and while the high dividend yield is attractive, it may be unsustainable. The earnings call highlighted positive leasing activity and bond issuance, but also noted significant impairments and market challenges.

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 investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 175 properties and 24.7 million square feet as of December 31, 2020 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.

How the Company Makes Money

Brandywine Realty generates revenue primarily through leasing office and mixed-use properties to a diverse range of tenants, including corporations, government agencies, and non-profit organizations. The company's revenue model is heavily reliant on rental income from its portfolio of properties, which includes both stabilized assets and development projects. In addition to rental income, Brandywine may also earn revenue from property management fees and ancillary services related to its real estate operations. Significant partnerships with local governments and private developers can enhance the company’s revenue potential through joint ventures and development agreements. Furthermore, the strategic positioning of its properties in urban centers allows Brandywine to capitalize on the demand for high-quality office space, contributing to its overall earnings.

Brandywine Realty Financial Statement Overview

Summary

Brandywine Realty is experiencing financial challenges, with declining revenue and significant net losses impacting its financial health. The balance sheet shows increased leverage and reduced equity, posing risks if financial performance does not improve. While cash flow from operations remains positive, the decline in free cash flow highlights the need for careful financial management.

Income Statement

Brandywine Realty's income statement reveals a challenging financial performance. The company has experienced a decline in revenue from $505.5 million to $500.5 million in the TTM, indicating a negative revenue growth rate. Additionally, the net income has been negative for the past few periods, with a significant loss of $207.1 million in the TTM, resulting in a negative net profit margin. The gross profit margin remains relatively stable, but the EBIT and EBITDA margins have decreased, reflecting operational challenges. Overall, the income statement shows declining profitability and revenue, which poses a risk to financial stability.

Balance Sheet

The balance sheet of Brandywine Realty shows a moderate level of financial stability. The debt-to-equity ratio has increased slightly, indicating higher leverage, which could pose a risk if revenue continues to decline. The equity ratio is decreasing, reflecting a reduction in stockholders' equity relative to total assets. Return on equity is negative due to the net losses, highlighting profitability challenges. Despite these concerns, the company maintains a substantial asset base, which provides some stability in the short term.

Cash Flow

Brandywine Realty's cash flow statement indicates a mixed performance. The operating cash flow remains positive, which is a positive sign of the company's ability to generate cash from operations. However, the free cash flow has decreased significantly from $51.4 million to $36.8 million in the TTM, reflecting higher capital expenditures. The operating cash flow to net income ratio is favorable due to the negative net income, but the free cash flow to net income ratio is low, indicating limited cash generation relative to losses. Overall, the cash flow situation is stable but requires careful management to support future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	495.77M	505.52M	437.84M	506.10M	457.85M	534.85M
Gross Profit	343.07M	318.19M	324.70M	311.70M	298.51M	329.40M
EBITDA	-84.43M	103.00M	91.29M	303.89M	255.97M	279.63M
Net Income	-326.38M	-195.91M	-197.36M	53.82M	12.29M	305.53M
Balance Sheet
Total Assets	3.39B	3.49B	3.73B	3.87B	3.85B	3.90B
Cash, Cash Equivalents and Short-Term Investments	122.64M	90.23M	58.32M	17.55M	27.46M	46.34M
Total Debt	0.00	2.24B	2.16B	1.99B	1.88B	1.85B
Total Liabilities	2.51B	2.45B	2.41B	2.24B	2.14B	2.10B
Stockholders Equity	879.77M	1.04B	1.32B	1.63B	1.69B	1.79B
Cash Flow
Free Cash Flow	6.44M	51.37M	20.81M	-53.71M	55.75M	65.56M
Operating Cash Flow	115.47M	181.13M	177.27M	209.31M	190.87M	225.81M
Investing Cash Flow	-10.72M	-120.19M	-174.91M	-190.59M	-100.31M	18.29M
Financing Cash Flow	-109.79M	-32.30M	46.79M	-28.63M	-109.34M	-288.19M

Brandywine Realty Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDN, the sentiment is Positive. The current price of 4.29 is above the 20-day moving average (MA) of 4.06, above the 50-day MA of 4.11, and below the 200-day MA of 4.38, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.04 is Neutral, neither overbought nor oversold. The STOCH value of 93.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BDN.

Brandywine Realty Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGRE	70 Neutral	$1.72B	―	-2.52%	0.56%	-1.68%	63.27%
HIW	68 Neutral	$3.41B	26.70	5.39%	6.43%	-2.16%	-16.41%
CIO	65 Neutral	$279.72M	―	-17.53%	5.77%	-3.69%	-777.30%
Sector *	63 Neutral	$6.95B	13.72	-0.50%	6.99%	4.08%	-25.24%
BDN	57 Neutral	$738.67M	―	-29.94%	13.99%	-3.05%	-94.96%
PDM	57 Neutral	$1.05B	―	-4.27%	5.92%	-6.74%	17.44%
HPP	53 Neutral	$1.08B	―	-12.35%	2.07%	-9.68%	-69.03%

Brandywine Realty Corporate Events

Brandywine Realty Completes $150M Notes Offering

On June 27, 2025, Brandywine Operating Partnership, L.P., a subsidiary of Brandywine Realty Trust, completed a $150 million offering of 8.875% Guaranteed Notes due 2029. The proceeds from this offering will be used to repay outstanding borrowings under its $600 million unsecured revolving credit facility, fund partial repayment of secured debt, and for general corporate purposes. This financial maneuver is expected to bolster the company’s liquidity and financial flexibility, potentially impacting its market positioning and stakeholder interests.

Brandywine Realty Announces $150 Million Notes Offering

On June 17, 2025, Brandywine Realty Trust announced the pricing of a $150 million public offering of 8.875% guaranteed notes due 2029, with a re-offer yield of 7.039%. The proceeds, expected to be approximately $148 million after expenses, will be used to repay borrowings under its credit facility, fund partial debt repayment, and for general corporate purposes. The offering, expected to close on June 27, 2025, strengthens Brandywine’s financial positioning by addressing existing debt obligations.