Brandywine Realty Trust (BDN) investor relations material

Executive summary

• Q1 2026 results aligned with business plan, with FFO at $20.0 million ($0.11/share), matching guidance and consensus, and net loss of $48.9 million ($0.28/share), impacted by $11.9 million in non-cash impairments.

• Leasing activity totaled 422,000 sq ft (including JVs), the highest wholly owned activity since Q4 2024, with core portfolio occupancy at 88.3% and leasing at 89.9%.

• Portfolio recycling and debt reduction program progressing, with $305 million in sales under agreement, expected to close mostly in Q2.

• Major development milestones achieved at Uptown ATX (Austin) and Schuylkill Yards (Philadelphia), with recapitalizations and refinancing initiatives underway.

• Portfolio consisted of 64 properties totaling 12.3 million sq ft as of March 31, 2026.

Financial highlights

• Q1 2026 revenue was $127.0 million, up 4.5% year-over-year; NOI was $74.99 million, with same store NOI up 0.8% GAAP and 3.3% cash.

• Net loss was $48.9 million ($0.28/share), including $11.9 million in non-cash property impairments.

• FFO totaled $20.0 million ($0.11/share), in line with guidance but down from $24.7 million in Q1 2025.

• Operating expenses increased 15.2% to $38.6 million, driven by higher utilities and new ventures.

• FFO payout ratio was 72.7%–73% for Q1 2026.

Outlook and guidance

• Full-year FFO guidance midpoint maintained at $0.55/share, with narrowed range to $0.52–$0.58; loss per share guidance adjusted to $(0.76)–$(0.70).

• Year-end core occupancy expected at 89–90%, with positive net absorption and improved occupancy projected.

• Same store NOI growth guidance: 5–7% combined, 8–10% for CBD/PA, (1.6%)–4% for Austin.

• Anticipates closing $280–$305 million in sales in Q2, with proceeds for debt reduction and share repurchases.

• No property acquisitions planned; refinancing of $178 million construction loan and extension of credit facility planned.