Brandywine Realty Trust | 8-K: FY2026 Q2 Revenue: USD 128.92 M

Revenue: As of FY2026 Q2, the actual value is USD 128.92 M.

EPS: As of FY2026 Q2, the actual value is USD -0.18, beating the estimate of USD -0.1824.

EBIT: As of FY2026 Q2, the actual value is USD 11.76 M.

Financial Highlights

Net Loss Available to Common Shareholders

Brandywine Realty Trust reported a net loss available to common shareholders of - $31.7 million, or - $0.18 per diluted share, for the second quarter of 2026, an improvement from a net loss of - $89.0 million, or - $0.51 per share, in the second quarter of 2025. The second quarter of 2025 included - $63.4 million or - $0.37 per share in non-cash impairment charges related to Austin, Texas portfolio assets. For the first six months of 2026, the net loss was - $80.6 million, or - $0.46 per share, compared to - $116.4 million, or - $0.67 per share, for the first six months of 2025, also impacted by the same 2025 impairment charges.

Funds from Operations (FFO)

FFO attributable to common shareholders and units was $23.6 million, or $0.13 per diluted share, in the second quarter of 2026, down from $26.1 million, or $0.15 per diluted share, in the second quarter of 2025. The FFO payout ratio for the second quarter of 2026 was 62%. For the first six months of 2026, FFO was $43.6 million, or $0.24 per diluted share, compared to $50.8 million, or $0.28 per diluted share, in the first six months of 2025, with a payout ratio of 67%.

Total Revenue

Total revenue for the second quarter of 2026 was $128.920 million, an increase from $120.571 million in the second quarter of 2025. For the six months ended June 30, 2026, total revenue reached $255.924 million, up from $242.087 million in the prior year period.

Operating Expenses

Total operating expenses were $109.526 million in the second quarter of 2026, significantly lower than $161.812 million in the second quarter of 2025, primarily due to a - $63.369 million provision for impairment in 2025. For the six months ended June 30, 2026, total operating expenses were $235.020 million, down from $271.226 million in the prior year period.

Operating Income (Loss)

Brandywine Realty Trust reported operating income of $19.457 million for the second quarter of 2026, a substantial improvement from an operating loss of - $41.327 million in the second quarter of 2025. For the first six months of 2026, operating income was $20.967 million, compared to an operating loss of - $26.166 million in the first six months of 2025.

Interest Expense

Interest expense for the second quarter of 2026 was - $41.931 million, an increase from - $32.345 million in the second quarter of 2025. For the six months ended June 30, 2026, interest expense was - $82.820 million, up from - $64.190 million in the prior year period.

Operational Metrics

Portfolio Performance

As of June 30, 2026, Brandywine Realty Trust’s core portfolio was 89.1% occupied and 90.6% leased. The company signed 254,000 square feet in new and renewal leases in its wholly-owned portfolio during the second quarter of 2026, and 353,000 square feet including unconsolidated joint ventures.

Rental Rate Mark-to-Market

Rental rates increased by 1.5% on an accrual basis, while decreasing by -4.2% on a cash basis.

Same Store Net Operating Income (NOI)

Same Store NOI increased by 0.5% on an accrual basis and 1.9% on a cash basis for the second quarter of 2026. For the six months ended June 30, 2026, Same Store NOI increased by 0.8% on an accrual basis and 2.7% on a cash basis, excluding certain items.

Tenant Retention Ratio

The tenant retention ratio for the second quarter of 2026 was 85% in the core portfolio.

Asset Sales

Brandywine Realty Trust has closed $208 million of portfolio asset sales and increased its asset sales target from $290 million to $305 million. Notable sales include a Conshohocken, PA office property for $15.5 million, a King of Prussia, PA office property for $41.5 million, and an Austin, TX office property for $151.0 million.

Liquidity and Debt

As of June 30, 2026, Brandywine Realty Trust had $40.2 million in cash and cash equivalents, which subsequently decreased to $35 million after disposition activity. The unsecured credit facility had an outstanding balance of $149 million as of June 30, 2026, but currently has no outstanding balance due to disposition sales activity. Secured debt was $144.260 million as of June 30, 2026, down from $234.079 million at December 31, 2025. The company also closed a $90 million secured term loan for Avira and repaid its $178 million construction loan.

2026 Outlook and Guidance

Brandywine Realty Trust is narrowing its 2026 FFO guidance to $0.53 - $0.57 per diluted share and adjusting its 2026 loss per share guidance to - $0.45 – - $0.41 per share, primarily due to projected net gains on sale of undepreciated real estate. Key assumptions for 2026 include a year-end core occupancy range of 89-90%, a year-end core leased range of 90-91%, and projected property sales of $305 million.