PHILADELPHIA, PA — Brandywine Realty Trust (NYSE: BDN) announced its financial and operating results for the second quarter of 2024, showcasing significant achievements and strategic advancements.
The company reported a net income of $29.9 million, or $0.17 per diluted share, driven in part by a one-time, non-cash income of $53.8 million from the recapitalization of a joint venture. This positive outcome contrasts with a net loss of $12.9 million, or $0.08 per diluted share, in the same quarter last year.
Funds from Operations (FFO), a key performance measure for real estate investment trusts, totaled $38.0 million, or $0.22 per diluted share, for the quarter. This compares to $49.6 million, or $0.29 per diluted share, for the same period in 2023.
Brandywine’s core portfolio showed solid performance, with an occupancy rate of 87.3% and a leasing rate of 88.5%. The company signed new and renewal leases totaling 164,000 square feet in its wholly-owned properties and 501,000 square feet including joint ventures.
Gerard H. Sweeney, President and CEO, highlighted the company’s success in meeting and exceeding its speculative revenue target. “Based on our first half leasing performance, we are raising our full-year midpoint target by $1.0 million from $24.5 million to $25.5 million,” Sweeney said. This adjustment reflects Brandywine’s strong leasing activities and positive rental rate growth.
The company also made strides in addressing its joint venture debt portfolio maturities. It secured a new mortgage at Cira Square and recapitalized its MAP joint venture, which included a 5-year leasehold mortgage and the acquisition of a 14-property industrial and flex portfolio for $26.0 million.
In the second quarter, Brandywine completed an underwritten public offering of $400 million aggregate principal amount of 8.875% Guaranteed Notes due 2029. The net proceeds were used to repay the company’s $335.1 million of 4.10% Guaranteed Notes due October 1, 2024, and for general corporate purposes. As of June 30, 2024, the company had a $25.0 million outstanding balance on its $600.0 million unsecured line of credit and $30.4 million in cash and cash equivalents.
Brandywine’s financial results for the first half of 2024 also showed an improvement. Net income allocated to common shares was $13.2 million, or $0.08 per diluted share, compared to a net loss of $18.2 million, or $0.11 per diluted share, in the first half of 2023. FFO for the first six months of 2024 totaled $79.2 million, or $0.45 per diluted share, versus $100.4 million, or $0.58 per diluted share, in the first half of 2023.
The company’s liquidity remains strong, with no unsecured bonds maturing until November 2027. Brandywine also continues to enhance its portfolio, with rental rate growth increasing by 10.8% on an accrual basis and a tenant retention ratio of 67%.
Looking ahead, Brandywine has adjusted its 2024 earnings and FFO guidance, with an anticipated loss per share ranging from $(0.01) to $0.04, and FFO per diluted share ranging from $0.91 to $0.96. The company expects to maintain its momentum with robust leasing activities and strategic financial management.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.