NYSE$BDN

Brandywine Realty Trust · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial and operating results for the three and nine-month periods ended September 30, 2024.

Brandywine Realty Trust reported a net loss of $(165.5) million, or $(0.96) per share, for the third quarter of 2024. Despite this, the company made strong progress on its 2024 business plan, exceeding many targets and raising both the speculative revenue target and the annual tenant retention rate.

  • Speculative revenue target raised to $26.3 million, 100% achieved.
  • Annual tenant retention rate increased by 3.0%, placing the company over 10 percentage points above the original 2024 business plan target.
  • Completed the sale of five Class-B office properties in Plymouth Meeting, Pennsylvania for a gross sales price of $65.5 million.
  • Adjusted and narrowed FFO range from $0.91 to $0.96 per share to $0.89 to $0.92 per share.

Headline financials

Total Revenue

$132M

Previous: $129M+1.9%
EPS

-$0.96

Previous: $0.29-431.0%
Tenant Retention

75.0%

Previous: 44.0%+70.5%
Mark-to-Market (Accrual)

10.8%

No prior period
Mark-to-Market (Cash)

5.2%

No prior period
Core Occupancy

88.1%

Previous: 88.3%-0.2%
Core Leased

91.0%

Previous: 90.4%+0.7%
Same-Store NOI (Accrual)

1.9%

No prior period
Same-Store NOI (Cash)

2.2%

No prior period
FFO Payout Ratio

56.0%

No prior period
Capital Expenditures

-$29.6M

Previous: -$30.1M+1.9%
Free Cash Flow

-$195M

Previous: -$51.7M-276.8%
Net Income

-$165M

Previous: -$21.6M-666.5%
Operating Income

-$9.46M

Previous: $14.3M-166.3%
Gross Profit

$85.5M

Previous: $83M+3.0%
Cash & Equivalents

$36.5M

Previous: $47.9M-23.8%
Total Assets

$3.6B

Previous: $3.92B-8.2%
Stock-Based Comp

$6.2M

Previous: $2.23M+177.6%

Revenue & EPS history

Brandywine · Revenue · Quarterly

$132M

Q3 2024+1.9%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
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 2024 loss per share guidance from $(0.01) - $0.04 to $(1.01) - $(0.98) per share and adjusting its 2024 FFO guidance from $0.91 - $0.96 to $0.89 - $0.92 per diluted share.

Tailwinds

  • Year-end Core Occupancy Range: 87-88%.
  • Year-end Core Leased Range: 88-89%.
  • Rental Rate Growth (accrual): 12-13%.
  • Rental Rate Growth (cash): 1-2%.
  • Speculative Revenue Target: $26.3 million, 100% achieved as of October 18, 2024.

Headwinds

  • Same Store (accrual) NOI Growth Range: (1)-1%.
  • Same Store (cash) NOI Growth Range: 1-3%.
  • Interest Expense Range: $125 - $130 million.
  • Property Acquisition Activity: None.
  • Land Sale Income: reduced from $5.0 million to None.

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 2024

Historical avgQ3 2024

-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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