NYSE$BDN

Brandywine Realty Trust · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Brandywine Realty Trust reported financial results for the first quarter of 2020 and adjusted 2020 guidance.

Brandywine Realty Trust announced first quarter results with net income of $7.9 million, or $0.04 per diluted share, and FFO of $61.4 million, or $0.35 per diluted share. The company revised its 2020 FFO guidance from $1.41 - $1.51 to $1.37-$1.45 per diluted share due to the uncertainty surrounding the healthcare crisis.

  • Net income allocated to common shareholders was $7.9 million, or $0.04 per diluted share.
  • Funds from Operations (FFO) totaled $61.4 million, or $0.35 per diluted share.
  • The core portfolio was 93.3% occupied and 95.3% leased.
  • Rental rate mark-to-market increased 15.7% on an accrual basis and increased 7.9% on a cash basis.

Headline financials

Total Revenue

$145M

Previous: $144M+0.8%
EPS (adj)

$0.35

Previous: $0.34+2.9%
Tenant Retention

76.0%

No prior period
Mark-to-Market (Cash)

7.9%

No prior period
Core Leased

95.3%

No prior period
Same-Store NOI (Accrual)

2.7%

No prior period
Same-Store NOI (Cash)

4.0%

No prior period
Capital Expenditures

-$30.9M

Previous: -$18.6M-65.5%
Free Cash Flow

-$22.8M

Previous: -$14.6M-56.0%
Net Income

$8.02M

Previous: $4.01M+100.1%
Operating Income

$30.2M

Previous: $25.7M+17.4%
Gross Profit

$88.2M

Previous: $86.5M+1.9%
Cash & Equivalents

$52.7M

Previous: $14.4M+264.7%
Total Assets

$4.05B

Previous: $4.12B-1.7%
Stock-Based Comp

$2.35M

Previous: $3.45M-31.9%

Revenue & EPS history

Brandywine · Revenue · Quarterly

$145M

Q1 2020+0.8%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Brandywine · $145M total across 3 segments · Q1 2020

  • Rents
    $139M
  • Mgmt & Leasing Fees
    $4.95M
  • Other Revenue
    $930K

Forward guidance

Brandywine Realty Trust adjusted its 2020 guidance due to the uncertainty surrounding the current state of the healthcare crisis. The company reduced 2020 capital spending by approximately $50.0 million and repurchased $60.0 million of common stock.

Tailwinds

  • Year-end Core Occupancy Range: 92-93%
  • Year-end Core Leased Range: 94-95%
  • Rental Rate Mark-to-Market (accrual): 17-19%
  • Rental Rate Mark-to-Market (cash): 8-10%
  • Speculative Revenue Target: $26.0 million, 96% achieved

Headwinds

  • Same Store (accrual) NOI Range: 1-3%
  • Same Store (cash) NOI Range: (1)-1%
  • Tenant Retention Rate: 50%
  • Property Acquisition Activity: 250 King of Prussia Road, Radnor, Pennsylvania scheduled to occur 2H20
  • Property Sales Activity: $18.0 million, 100% achieved

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.1%

Avg return

Earnings day

-0.4%

Avg return

5 days after

-0.7%

Avg return

30 days after

43%

30 / 69 earnings

Positive

+7.9%

Q4 2022

Best reaction

-15.3%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.4%+2.4%+2.0%
Q4 2025+5.4%+14.5%+8.5%
Q3 2025-4.2%-7.3%-10.1%
Q2 2025-0.7%-1.0%+12.1%
Q1 2025+2.1%+4.1%+5.4%
Q4 2024-5.0%-7.6%-12.9%
Q3 2024-15.3%-19.1%-13.4%
Q2 2024-2.1%+6.1%+6.7%
Q1 2024+0.5%+5.5%+14.0%
Q4 2023-12.0%-15.8%-14.0%
Q3 2023-1.8%-2.8%+4.9%
Q2 2023+5.6%+7.3%+1.9%
Q1 2023+0.0%-3.6%-12.3%
Q4 2022+7.9%+2.7%-10.4%
Q3 2022+3.6%+5.9%+6.4%
Q2 2022-2.7%-0.7%-13.0%
Q1 2022+0.6%-2.0%-16.8%
Q4 2021-0.5%+0.0%+4.1%
Q3 2021-2.2%-4.3%+4.1%
Q2 2021-0.1%-0.1%+0.1%
Q1 2021-0.5%+1.7%+5.5%
Q4 2020+0.7%+3.4%+14.1%
Q3 2020-0.9%-6.2%+9.6%
Q2 2020+5.0%+2.2%+3.2%
Q1 2020+3.8%+10.1%-1.7%
Q4 2019-3.1%-2.4%-15.6%
Q3 2019+0.3%+1.0%+5.2%
Q2 2019+1.0%+2.4%+0.1%
Q1 2019-1.5%-2.0%-2.9%
Q4 2018-0.6%+1.6%+2.8%
Q3 2018-2.2%-3.5%-2.8%
Q2 2018-1.8%-2.8%+2.6%
Q1 2018+0.3%+1.1%+1.0%
Q4 2017-0.6%-2.8%-8.5%
Q3 2017-2.8%-2.6%-3.0%
Q2 2017-2.5%-2.5%-4.1%
Q1 2017-0.6%+0.4%+2.4%
Q4 2016-1.4%-0.6%+2.2%
Q3 2016-0.4%+0.8%-2.6%
Q2 2016-0.5%-0.5%-1.1%
Q1 2016+2.4%
Q4 2015-1.2%
Q3 2015+4.2%
Q2 2015+0.6%
Q1 2015-0.7%
Q4 2014-0.5%
Q3 2014+3.8%
Q2 2014+0.4%
Q1 2014+2.2%
Q4 2013-1.1%
Q3 2013+2.6%
Q2 2013-0.5%
Q1 2013+0.7%
Q4 2012+0.8%
Q3 2012-3.4%
Q2 2012+3.5%
Q1 2012+0.8%
Q4 2011-0.5%
Q3 2011+6.4%
Q2 2011-11.1%
Q1 2010-1.0%
Q1 2011-0.4%
Q4 2008+4.0%
Q4 2010+4.0%
Q3 2009+0.1%
Q3 2010+0.1%
Q2 2010-0.3%
Q4 2009-0.3%
Q2 2009-0.3%

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