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Brandywine Realty Trust (BDN)
NYSE:BDN
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Brandywine Realty (BDN) AI Stock Analysis

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Brandywine Realty

(NYSE:BDN)

Rating:54Neutral
Price Target:
$4.50
▲(7.91%Upside)
Brandywine Realty's overall stock score of 54 reflects significant financial challenges, including declining profitability and increased leverage. While technical indicators and valuation show neutral positions, corporate actions to improve liquidity and flexibility provide some support. The earnings call highlighted both ongoing challenges and potential future improvements, leading to a cautious but slightly optimistic outlook.

Brandywine Realty (BDN) vs. SPDR S&P 500 ETF (SPY)

Brandywine Realty Business Overview & Revenue Model

Company DescriptionBrandywine 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 MoneyBrandywine Realty Trust generates revenue primarily through the leasing of office and mixed-use properties. The company earns rental income from tenants who occupy its real estate assets, which include office buildings and commercial spaces. Another significant revenue stream for Brandywine comes from property management fees and services provided to tenants, such as maintenance and building operations. Additionally, the company engages in the development and redevelopment of properties, creating value through the strategic improvement and optimization of its real estate portfolio. Partnerships with local governments and community organizations often enhance Brandywine's development projects, contributing to the company's growth and financial performance.

Brandywine Realty Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 11.20%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mix of positive developments, such as strong forward leasing activity and solid performance in Philadelphia, alongside challenges, including tenant defaults in Austin and a high CAD payout ratio. While there is optimism about the future, especially with development projects nearing stabilization, current financial metrics and market challenges present concerns.
Q1-2025 Updates
Positive Updates
Forward Leasing Activity Surge
Brandywine Realty Trust reported 306,000 square feet of forward leasing activity, marking the highest level of forward leasing velocity in over 11 quarters.
Strong Performance in Philadelphia
Brandywine is 96.2% leased in their Philadelphia CBD portfolio and captured 64% of all deals done in the Central Business District during the first quarter.
Positive Leasing Momentum in Austin
Austin recorded over 112 tenants actively seeking more than 3.7 million square feet of space as of April, a 33% increase in demand over the fourth quarter of '24.
Development Projects Nearing Stabilization
The Schuylkill Yards office component is 80% leased, Avira residential tower is 96% leased, and Solaris House is 56% leased, with expectations of stabilization in the near future.
Liquidity and Financial Health
Brandywine prepaid a $70 million unsecured term loan and has $65 million outstanding on a $600 million unsecured line of credit, with no unsecured bond maturities until 2027.
Negative Updates
Challenges in Austin
The Austin market experienced early terminations and tenant defaults, resulting in a lower occupancy rate of 75%.
First Quarter Net Loss
Brandywine reported a first quarter net loss of $27.4 million or $0.16 per share.
FFO Below Consensus
First quarter FFO totaled $24.7 million or $0.14 per diluted share, $0.02 below first quarter consensus.
High CAD Payout Ratio
The first quarter CAD payout ratio was 169.4%, which is significantly elevated.
Life Science Market Recovery Challenges
The Life Science market remains in a recovery mode, impacted by a challenging fundraising climate and public policy uncertainty.
Company Guidance
In the first quarter of 2025, Brandywine Realty Trust reported a FFO of $0.14 per share, with a leasing activity of approximately 340,000 square feet, including 235,000 square feet in its wholly-owned portfolio and 105,000 square feet in joint ventures. The company achieved a quarterly retention rate of 55% and has executed 92% of its 2025 speculative revenue target. They ended the quarter with 86.6% occupancy and 89.2% leased, with Philadelphia at 93% occupied and 96% leased. The company reported a 306,000 square feet forward leasing activity, the highest in over 11 quarters, which mitigates the quarter's negative absorption due to early terminations and tenant defaults. Despite market challenges, Brandywine maintained its year-end occupancy and leasing guidance, with only 4.4% of annual rollover through 2026, one of the lowest in the office sector. The company's development projects are expected to stabilize between the second quarter of 2025 and the third quarter of 2026, with anticipated NOI increases upon stabilization. The overall strategy includes maintaining liquidity and recapitalizing developments to improve financial metrics.

Brandywine Realty Financial Statement Overview

Summary
Brandywine Realty is experiencing financial challenges with declining revenue and profitability, as indicated by its income statement, balance sheet, and cash flow statement. The company reported significant net losses and increased leverage, posing risks to financial stability. However, it maintains a substantial asset base, providing some short-term stability.
Income Statement
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue505.52M437.84M506.10M457.85M534.85M
Gross Profit318.19M324.70M311.70M298.51M329.40M
EBITDA103.00M91.29M303.89M255.97M279.63M
Net Income-195.91M-197.36M53.82M12.29M305.53M
Balance Sheet
Total Assets3.49B3.73B3.87B3.85B3.90B
Cash, Cash Equivalents and Short-Term Investments90.23M58.32M17.55M27.46M46.34M
Total Debt2.24B2.16B1.99B1.88B1.85B
Total Liabilities2.45B2.41B2.24B2.14B2.10B
Stockholders Equity1.04B1.32B1.63B1.69B1.79B
Cash Flow
Free Cash Flow51.37M20.81M-53.71M55.75M65.56M
Operating Cash Flow181.13M177.27M209.31M190.87M225.81M
Investing Cash Flow-120.19M-174.91M-190.59M-100.31M18.29M
Financing Cash Flow-32.30M46.79M-28.63M-109.34M-288.19M

Brandywine Realty Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.17
Price Trends
50DMA
4.17
Positive
100DMA
4.11
Positive
200DMA
4.54
Negative
Market Momentum
MACD
0.03
Negative
RSI
47.95
Neutral
STOCH
61.11
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 4.17 is below the 20-day moving average (MA) of 4.18, above the 50-day MA of 4.17, and below the 200-day MA of 4.54, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 47.95 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 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 47 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$1.51B-2.11%0.55%1.67%73.75%
HIHIW
66
Neutral
$3.27B18.977.21%6.60%-2.01%31.64%
CICIO
64
Neutral
$217.93M-2.51%9.26%-4.92%-128.59%
63
Neutral
$6.74B18.42-1.93%7.60%4.67%-25.44%
PDPDM
57
Neutral
$903.20M-3.79%6.89%-6.23%18.07%
BDBDN
54
Neutral
$723.35M-18.11%17.99%-2.22%1.51%
HPHPP
51
Neutral
$979.40M-12.23%1.96%-9.39%-72.30%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BDN
Brandywine Realty
4.16
-0.13
-3.03%
HIW
Highwoods Properties
30.31
3.41
12.68%
HPP
Hudson Pacific Properties
2.52
-3.01
-54.43%
PDM
Piedmont Office
7.31
-0.65
-8.17%
PGRE
Paramount Group
6.35
1.03
19.36%
CIO
City Office REIT
5.40
>-0.01
-0.18%

Brandywine Realty Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Brandywine Realty Completes $150M Notes Offering
Positive
Jun 27, 2025

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.

The most recent analyst rating on (BDN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Brandywine Realty stock, see the BDN Stock Forecast page.

Private Placements and Financing
Brandywine Realty Announces $150 Million Notes Offering
Positive
Jun 20, 2025

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.

The most recent analyst rating on (BDN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Brandywine Realty stock, see the BDN Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Brandywine Realty Shareholders Approve Key Amendments
Neutral
May 22, 2025

On May 21, 2025, Brandywine Realty Trust held its Annual Meeting of Shareholders, where several key decisions were made. Shareholders approved an amendment to the 2023 Long-Term Incentive Plan, increasing the number of common shares by 5,000,000, which could enhance the company’s ability to attract and retain talent. Additionally, the election of six trustees, the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and a non-binding resolution on executive compensation were also voted on, reflecting the company’s ongoing governance and strategic planning efforts.

The most recent analyst rating on (BDN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Brandywine Realty stock, see the BDN Stock Forecast page.

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.Date of analysis: Jul 19, 2025