In This Article:
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Core Portfolio Occupancy: 87.8% occupied and 89.9% leased.
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Spec Revenue: $26.4 million, exceeding the 2024 target by 8%.
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Tenant Retention Rate: 63%, above the original target of 51% to 53%.
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Leasing Activity: 2.3 million square feet for the year; 783,000 square feet in Q4.
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Liquidity: $90 million cash on hand; no outstanding amounts on a $600 million unsecured line of credit.
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Dispositions: Over $300 million, exceeding the $150 million revised midpoint guidance.
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FFO: $0.17 for Q4 and $0.85 for 2024.
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Net Loss: $43.3 million or $0.25 per share for Q4.
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2025 FFO Guidance: $0.60 to $0.72 per share, midpoint of $0.66.
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Same-Store NOI Growth: 1% to 3% on a cash basis for 2025.
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2025 Occupancy Levels: Expected between 88% and 89%.
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2025 Lease Levels: Expected between 89% and 90%.
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2025 Retention Rate: Expected between 59% and 61%.
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2025 Capital Spend: Impacted by $23 million of deferred tenant allowance payments.
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2025 Debt Metrics: Net debt to EBITDA expected to be 82% to 84%.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Brandywine Realty Trust (NYSE:BDN) exceeded its 2024 business planned spec revenue target by 8%, generating $26.4 million.
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The company achieved a tenant retention rate of 63%, surpassing its original target of 51% to 53%.
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Leasing activity was robust, with approximately 2.3 million square feet leased in 2024, including 783,000 square feet in the fourth quarter alone.
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Brandywine Realty Trust (NYSE:BDN) significantly improved its liquidity, completing over $300 million in dispositions, well above its $150 million revised midpoint guidance.
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The company's wholly owned core portfolio is 87.8% occupied and 89.9% leased, showing sequential improvement over the last quarter.
Negative Points
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Brandywine Realty Trust (NYSE:BDN) fell short of its FFO targets, with FFO results at $0.17 for the fourth quarter and $0.85 for 2024.
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The company is facing a transitional earnings year in 2025, impacted by expensing preferred coupon payments and interest expenses related to residential projects.
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Development projects are taking longer to lease up than anticipated, affecting earnings visibility.
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The 2025 FFO guidance is significantly lower than 2024, with a midpoint of $0.66, reflecting a $0.19 per share decrease.
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The company anticipates a CAD payout ratio of 120% to 150% in 2025, which is elevated compared to historical averages.
Q & A Highlights
Q: Have any of the larger tenants at 3151 or Uptown ATX gone elsewhere, or are they just not making decisions? What is the biggest hold-up in getting these companies to make decisions? A: Gerard Sweeney, President and CEO, stated that they have not lost any major prospects to other buildings or decisions to stay put. The timelines have been protracted, and discussions are ongoing. Tenants are behaving more pragmatically and cautiously, likely due to macro uncertainties such as elections and economic conditions. However, there is a trend towards companies finalizing their return-to-work policies, which is encouraging for future leasing decisions.