PHILADELPHIA, PA — Brandywine Realty Trust (NYSE: BDN) reported a narrower fourth-quarter loss and laid out an aggressive 2026 plan focused on shoring up liquidity, recycling assets, and reducing debt after a volatile year for the office-focused real estate investment trust.
The Philadelphia-based company posted a fourth-quarter net loss attributable to common shareholders of $(36.9) million, or $(0.21) per share, for the three months ended December 31, 2025, compared with a loss of $(44.8) million, or $(0.26) per share, a year earlier. Results included a $(12.2) million charge tied to the early extinguishment of a $245 million loan.
Funds from operations available to common shareholders totaled $14.6 million, or $0.08 per diluted share, down from $29.9 million, or $0.17 per share, in the fourth quarter of 2024. For the full year, Brandywine reported a net loss of $(179.5) million, or $(1.03) per share, compared with a loss of $(197.1) million, or $(1.14) per share, in 2024. Full-year FFO declined to $93.4 million, or $0.52 per diluted share, from $148.9 million, or $0.85 per share, the prior year.
President and Chief Executive Officer Jerry Sweeney said the company met key objectives in 2025, including tenant retention, same-store net operating income growth, and mark-to-market rent gains. He highlighted the buyout of preferred equity partners at 3025 JFK and 3151 Market Street in Philadelphia, transactions that made both properties wholly owned and were funded with cash on hand.
Sweeney said Brandywine ended the year with no borrowings on its $600 million unsecured revolving credit facility and no bond maturities until November 2027, calling the company’s liquidity position strong despite ongoing pressure in the office sector.
During the fourth quarter, the core portfolio was 88.3 percent occupied and 90.4 percent leased. The company signed 157,000 square feet of new and renewal leases in its wholly owned portfolio during the quarter, and more than 1.55 million square feet across wholly owned properties and joint ventures for the full year. Same-store NOI rose 2.4 percent on an accrual basis and 3.2 percent on a cash basis in the quarter.
Brandywine also completed several capital markets transactions in late 2025, including a $50.5 million C-PACE financing at its 3151 Market Street development and a $300 million offering of 6.125 percent guaranteed notes due 2031. Proceeds were used in part to retire secured debt, leaving the company’s core portfolio unencumbered.
Looking ahead, Brandywine forecast 2026 funds from operations of $0.51 to $0.59 per diluted share and a projected loss per share of $(0.66) to $(0.58). The company plans to recapitalize remaining development joint ventures in Austin, Texas, accelerate asset sales totaling $280 million to $300 million, and direct a majority of proceeds toward debt reduction, with potential bond repurchases and opportunistic common share buybacks.
The company said additional details, including a reconciliation of 2026 FFO guidance, are available in its supplemental information package on the investor relations section of its website.
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