NYSE$BDN

Brandywine Realty Trust · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported financial and operating results for the third quarter of 2021 and narrowed full year 2021 guidance.

Brandywine Realty Trust reported its Q3 2021 financial results, with net income available to common shareholders at $0.9 million, or $0.01 per diluted share, and Funds from Operations (FFO) at $61.1 million, or $0.35 per diluted share. The company narrowed its full-year 2021 FFO guidance to $1.35 to $1.39 per share.

  • Tenant return rates are above the national average, and leasing tour activity has risen to pre-pandemic levels.
  • The company has raised its speculative revenue target for the second consecutive quarter, now 99% complete.
  • Mark-to-market rents increased by 16% on an accrual basis and 12% on a cash basis.
  • The company has no outstanding balance on its $600 million unsecured line of credit.

Headline financials

Total Revenue

$120M

Previous: $126M-4.5%
EPS (adj)

$0.35

Previous: $0.35+0.0%
Tenant Retention

57.0%

Previous: 60.0%-5.0%
Core Occupancy

90.3%

Previous: 91.0%-0.8%
Core Leased

92.7%

Previous: 92.6%+0.1%
Capital Expenditures

-$26.7M

Previous: -$62.9M+57.5%
Free Cash Flow

-$25.7M

Previous: $212M-112.2%
Net Income

$967K

Previous: $275M-99.6%
Operating Income

$19M

Previous: $298M-93.6%
Gross Profit

$73.4M

Previous: $77.1M-4.9%
Cash & Equivalents

$42.5M

Previous: $62.3M-31.8%
Total Assets

$3.83B

Previous: $3.99B-4.0%

Revenue & EPS history

Brandywine · Revenue · Quarterly

$120M

Q3 2021-4.5%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Brandywine · $119M total across 2 segments · Q3 2022

  • Rents
    $117M
  • Other Revenue
    $1.22M

Forward guidance

Brandywine Realty Trust is adjusting its 2021 earnings per share guidance to $0.20 - $0.24 per diluted share and 2021 FFO guidance to $1.35 - $1.39 per diluted share.

Tailwinds

  • Year-end Core Occupancy Range: 91-93%
  • Year-end Core Leased Range: 92-94%
  • Rental Rate Mark-to-Market (accrual): 14-16%
  • Rental Rate Mark-to-Market (cash): 8-10%
  • Same Store (cash) NOI Range: 3-5%

Headwinds

  • Property Acquisition Activity: None
  • Property Sales Activity: Sale of our 50% interest in 3141 Fairview Park Drive, Falls Church, VA
  • Financing Activity: None
  • Share Buyback Activity: None
  • Annual earnings and FFO per diluted share based on 173.5 million fully diluted weighted average common shares.

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 Q3 2021

Historical avgQ3 2021

-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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