Overview

• U.S. office REIT reported Q2 net loss narrowed yr/yr to $31.7 mln, or $0.18 per share

• Q2 funds from operations fell to $23.6 mln from $26.1 mln a year earlier

• Company raised asset sales target and plans to use proceeds to lower debt, repurchase shares

Outlook

• Brandywine Realty narrows 2026 FFO guidance to $0.53-$0.57 per diluted share

• Company raises 2026 speculative revenue midpoint guidance by 5.7%

• Asset sales target for 2026 increased to $305 mln

Result Drivers

• TENANT RETENTION AND LEASING - Co cited higher tenant renewals, more tenant expansions, and an 85% retention rate as supporting operational performance

• ASSET SALES - Co completed $208 mln in property sales in Q2 and raised its asset sales target, with proceeds aimed at reducing debt and repurchasing shares

• MODEST NOI GROWTH - Same store net operating income rose 0.5% on an accrual basis and 1.9% on a cash basis

Company press release: ID:nGNX6rmQ3n

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Loss Per Share		$0.18
Q2 Net Loss		$31.54 mln
Q2 FFO		$23.60 mln

Analyst Coverage

• The current average analyst rating on the shares is "sell" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Brandywine Realty Trust is $3.00, about 4.8% below its July 21 closing price of $3.15

Reuters Recommended Reads

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