PHILADELPHIA, PA — Brandywine Realty Trust (NYSE: BDN) reported recently a net loss of $48.9 million for the first quarter of 2026 and updated its full-year funds from operations guidance following leasing activity and portfolio changes.
The company reported a net loss attributable to common shareholders of $0.28 per share, compared with a loss of $0.16 per share in the same period last year.
Funds from operations totaled $20.0 million, or $0.11 per diluted share, down from $24.7 million, or $0.14 per share, in the first quarter of 2025.
The company said results included $11.9 million in non-cash impairment charges.
Brandywine reported leasing 268,000 square feet in its wholly owned portfolio during the quarter, with total leasing activity reaching 422,000 square feet including joint ventures.
The company’s core portfolio was 88.3% occupied and 89.9% leased as of mid-April, with 182,000 square feet of additional leases scheduled to commence after March 31.
Same-store net operating income increased 0.8% on an accrual basis and 3.3% on a cash basis.
Rental rates increased 4.1% on an accrual basis, with renewal rates rising 5.0% and new lease rates declining 0.9%.
Brandywine reported negative net absorption of 38,000 square feet and a tenant retention rate of 45% during the quarter.
The company said it has approximately $305 million in property sales under agreement or in due diligence, exceeding its $290 million disposition target.
Brandywine also reported $65 million outstanding on its $600 million unsecured line of credit and $36.2 million in cash as of March 31.
The company declared a quarterly dividend of $0.08 per share, paid April 16 to shareholders of record on April 2.
Brandywine narrowed its 2026 FFO guidance to a range of $0.52 to $0.58 per diluted share, from a previous range of $0.51 to $0.59.
Jerry Sweeney, president and chief executive officer, said the company made progress toward its 2026 business plan.
“Our wholly owned first quarter leasing activity totaled 268,000 square feet representing the most activity since the fourth quarter of 2024,” Sweeney said.
The company also updated its full-year loss guidance to a range of $0.76 to $0.70 per share.
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