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Brandywine Realty
(NYSE:BDN)
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Rating:55Neutral
Price Target:
$3.00
▼(-5.36% Downside)
Action:Reiterated
Date:07/23/26
The overall score reflects strained fundamentals and high leverage as the dominant risk, partially offset by improving operating metrics and strategic repositioning. Weak profitability and a leveraged balance sheet weigh heavily on the rating, while a supportive technical backdrop, attractive dividend yield, constructive earnings call guidance, and positive asset sale and financing events provide meaningful but secondary offsets. The stock combines elevated financial risk with emerging operational and strategic progress, suitable mainly for investors comfortable with turnaround and balance-sheet execution risk.
Positive Factors
Cash generation
Consistent positive operating cash flow and a rebound to positive free cash flow in the TTM provide durable internal liquidity to fund operations, support distributions, and finance near-term deleveraging. This cash generation reduces reliance on capital markets and underpins stability over the next several months.
Negative Factors
Elevated leverage
Very high net debt/EBITDA ratios constrain financial flexibility and elevate refinancing and interest-rate risk. Leverage this elevated requires successful asset-sale execution and refinancing to avoid sustained stress on coverage metrics, making balance-sheet repair a multi-month structural priority.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating cash flow and a rebound to positive free cash flow in the TTM provide durable internal liquidity to fund operations, support distributions, and finance near-term deleveraging. This cash generation reduces reliance on capital markets and underpins stability over the next several months.
Read all positive factors
Brandywine Realty Key Performance Indicators (KPIs)
Any
Wholly Owned Properties by Geography
Counts the number of properties Brandywine holds in each geographic area, highlighting how diversified or concentrated the portfolio is. More properties in a market can mean stronger local presence and leasing power; concentration in a few markets increases sensitivity to regional economic shifts.
Counts the number of properties Brandywine holds in each geographic area, highlighting how diversified or concentrated the portfolio is. More properties in a market can mean stronger local presence and leasing power; concentration in a few markets increases sensitivity to regional economic shifts.
Data provided by:
The Fly
The FlyBrandywine Realty (BDN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$534.03M
Dividend Yield10.53%
Average Volume (3M)1.89M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth0.51%
EPS Growth56.07%
CountryUS
Employees278
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.82
Shares Outstanding174,576,900
10 Day Avg. Volume2,096,432
30 Day Avg. Volume1,892,131
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.64
Price to Sales (P/S)1.05
P/FCF Ratio153.26
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$3.50Price Target Upside10.41% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.77
Revenue Forecast (FY)$467.46M
Brandywine Realty Business Overview & Revenue Model
Company Description
Brandywine Realty Trust (NYSE: BDN) is a prominent, publicly traded Real Estate Investment Trust (REIT) operating across the United States. The company stands as a full-service, integrated real estate enterprise, primarily concentrating its operat...
How the Company Makes Money
Brandywine Realty Trust generates revenue primarily from its real estate operations. The main source of income is rental revenue from leasing office space (and any other commercial space within its properties) to tenants under lease agreements, wh...
Brandywine Realty Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Neutral
The call highlighted meaningful operational progress: leasing momentum, spec revenue outperformance, strong Philadelphia market performance, successful Radnor hotel launch, and tangible balance-sheet actions (>$208M closed sales, $305M expected) including refinancing activity. However, the company still faces elevated leverage, a GAAP net loss, concentration of weakness in Austin (67% occupancy), lower-than-expected termination/other income, and a temporary CAD payout above sustainable levels. Execution of the remaining asset sales, recapitalizations (ATX projects) and deleveraging are key to realizing the positive trajectory discussed.Positive Updates
Speculative Revenue Outperformance
Speculative revenue of $18.3 million in Q2, achieved 99% of speculative revenue at the revised guidance midpoint; management noted a $1 million increase versus the guidance midpoint.
Negative Updates
Elevated Leverage and High Debt Ratios
Annualized combined and core net debt/EBITDA were 9.0x and 8.1x, respectively; projected year-end core net debt/EBITDA in disclosure ranges (8.0–8.4x or 8.4–8.8x depending on scenario), indicating leverage remains elevated and reliant on asset sale execution.
Read all updates
Q2-2026 Updates
Positive
Negative
Speculative Revenue Outperformance
Speculative revenue of $18.3 million in Q2, achieved 99% of speculative revenue at the revised guidance midpoint; management noted a $1 million increase versus the guidance midpoint.
Read all positive updates
Company Guidance
Management reaffirmed full‑year FFO guidance with a $0.55 midpoint (Q2 FFO was $0.13/sh), narrowed the full‑year range and guided Q3 core FFO to $0.13–$0.15; Q3 property‑level operating income is expected to be ~$69.5M, G&A ~$7.5M (full year $36–$37M), total interest expense ~ $40M (includes $0.4M capitalized; midpoint lowered ~$6.5M), termination/other income $2.8M, net third‑party fees ~$1.5M, interest income $0.5M, and diluted share count ~180M. They expect to close $305M of asset sales by end‑Q3 ($208M closed to date), have $35M cash on hand and no outstanding LOC balance after using ~$192M of sale proceeds to pay it down, and plan to use proceeds primarily to delever (year‑end core net debt/EBITDA management cited ~8.0–8.4x while Tom cited ~8.4–8.8x, Q2 annualized combined/core net debt/EBITDA were 9.0x/8.1x, coverage ratios 1.7x); CAD payout ran 103% in Q2 but is forecast 70–90% for the balance of the year, with buybacks limited to ~5–10% of net proceeds and expected recap/land transactions to generate an additional $40–50M.Brandywine Realty Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
28
Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 498.29M | 484.45M | 505.52M | 514.65M | 506.10M | 486.82M |
| Gross Profit | 110.33M | -53.60M | 318.19M | 324.70M | 311.70M | 298.51M |
| EBITDA | 192.76M | 137.75M | 103.00M | 91.29M | 303.89M | 255.97M |
| Net Income | -142.96M | -179.48M | -195.91M | -196.79M | 53.82M | 12.29M |
Balance Sheet | ||||||
| Total Assets | 3.54B | 3.59B | 3.49B | 3.73B | 3.87B | 3.85B |
| Cash, Cash Equivalents and Short-Term Investments | 41.03M | 32.28M | 90.23M | 58.32M | 17.55M | 27.46M |
| Total Debt | 2.65B | 2.58B | 2.24B | 2.16B | 2.08B | 1.88B |
| Total Liabilities | 2.84B | 2.79B | 2.45B | 2.41B | 2.24B | 2.14B |
| Stockholders Equity | 691.18M | 792.73M | 1.04B | 1.32B | 1.63B | 1.69B |
Cash Flow | ||||||
| Free Cash Flow | 25.29M | 3.31M | 51.37M | 20.81M | -53.71M | 55.75M |
| Operating Cash Flow | 96.20M | 116.70M | 181.13M | 177.27M | 209.31M | 190.87M |
| Investing Cash Flow | -214.00M | -206.28M | -120.19M | -174.91M | -190.59M | -100.31M |
| Financing Cash Flow | 60.33M | 55.71M | -32.30M | 46.79M | -28.63M | -109.34M |
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% | |
61 Neutral | $1.25B | -14.94 | -5.39% | ― | 0.70% | -17.55% | |
57 Neutral | $782.97M | -1.36 | -17.20% | ― | -0.88% | 47.15% | |
57 Neutral | $1.15B | 102.61 | 0.85% | 7.14% | 13.93% | -43.58% | |
55 Neutral | $534.03M | -3.71 | -18.69% | 10.09% | 0.51% | 56.07% | |
44 Neutral | $48.08M | -1.13 | -5.41% | 9.09% | -5.02% | 21.97% |
* Real Estate Sector Average
BDN
Brandywine Realty
3.04
-0.40
-11.50%
FSP
Franklin Street Properties
0.45
-1.13
-71.28%
HPP
Hudson Pacific Properties
13.77
-3.10
-18.38%
PDM
Piedmont Office
9.69
2.37
32.38%
DEA
Easterly Government Properties
24.36
4.23
21.02%
Brandywine Realty Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Brandywine Realty Trust Completes Major Austin Asset Sale
Positive
Jul 10, 2026
On July 9, 2026, Brandywine Realty Trust completed the sale of a 206,000-square-foot office building and its 520-space parking garage in Austin, Texas, to an unaffiliated buyer for $151 million, generating net proceeds of about $146.1 million. The...
Business Operations and StrategyPrivate Placements and FinancingShareholder Meetings
Brandywine Realty Extends Credit Facility and Confirms Governance
Positive
Jun 1, 2026
On May 28, 2026, Brandywine Realty Trust and its operating partnership exercised a six-month extension option on their revolving credit facility, pushing the maturity date from June 30, 2026 to Dec. 30, 2026 in exchange for a 0.0625% extension fee...
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.