PHILADELPHIA, PA — The sound of success echoed through the financial corridors of Brandywine Realty Trust as the firm shared its 2023 results and set a bullish tone for 2024. Despite a net loss to common shareholders reaching $(157.4) million, Brandywine managed to demonstrate positivity and show signs of growth in other key areas, proof of the company’s resilience and adaptability.
In 2023, Brandywine maintained an occupancy rate of 88.0% and a leasing rate of 89.6% in its operating portfolio, showcasing its thriving leasing business. The total new and renewal leases for the year amounted to a commendable 1,517,000 sq. ft., with the fourth quarter contributing a solid 240,000 sq.ft. to that impressive total.
Investors will also be gratified by the rental rate’s upward climb. On an accrual basis, the rate grew by 13.4%, while on a cash basis, it surged by 7.5%. Plus, the tenant retention rate, a key indicator of business stability, remained steady throughout the year, closing at 49%.
Meanwhile, same-store results showed growth rates of 1.2% on an accrual basis and a remarkable 8.3% on a cash basis. As another testament to its strategic growth trajectory, Brandywine completed a series of property sales, culminating in substantial gains.
Brandywine closed the year in a position of strength, with a robust liquidity position. The firm also set forth its 2024 guidance, predicting a Funds from Operations (FFO) per diluted share in the range of $0.90 to $1.00, clearly indicating expectations of a prosperous year ahead.
Jerry Sweeney, CEO of Brandywine Realty Trust, expressed satisfaction with the company’s 2023 performance. Notably, he emphasized the firm’s continued focus on the containment of capital costs, maintaining a strong liquidity position, and improving performance despite a challenging environment. His positive outlook is a testament to Brandywine’s resilience as it actively navigates future financial landscapes.
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