Brandywine Realty Trust Announces Third Quarter 2026 Results
BRANDYWINE REALTY TRUST (BDN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Company / Investor Contact: Tom Wirth EVP & CFO 610-832-7434 tom.wirth@bdnreit.com Brandywine Realty Trust Announces Third Quarter 2026 Results Adjusts 2026 Guidance Philadelphia, PA, October 21, 2026 — Brandywine Realty Trust (NYSE:BDN) today reported its financial
How this was made
The 30-second read
Why it matters
Guidance revision is the primary market‑moving element; other operational metrics are secondary.
Market read
The updated guidance and balance‑sheet improvements are likely to influence BDN's stock and peer REITs in the near term.
What to watch
The $681 million of sales versus target and significant debt retirements could improve long‑term fundamentals despite the lower guidance.
Third-quarter Core FFO declined year over year as Brandywine adjusted 2026 loss-per-share and FFO guidance, completed major asset sales, reduced debt and repurchased common shares.
Core FFO, same-store accrual NOI and occupancy were lower year over year, while the company completed $681 million of sales, reduced combined debt by $390 million during the quarter, raised its speculative revenue target midpoint to $19.5 million and executed debt and share repurchases.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $125.6M | – | – |
| Rents, three months ended September 30, 2026GAAP | $118.7M | – | – |
| Third party management fees, labor reimbursement and leasing, three months ended September 30, 2026GAAP | $3.98M | – | – |
| Other revenue, three months ended September 30, 2026GAAP | $3.00M | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $134.2M | – | – |
| Property operating expenses, three months ended September 30, 2026GAAP | $39.23M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | $10.98M | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | $45.09M | – | – |
| General and administrative expenses, three months ended September 30, 2026GAAP | $7.95M | – | – |
| Provision for impairment, three months ended September 30, 2026GAAP | $29.06M | – | – |
| Net gain on disposition of real estate, three months ended September 30, 2026GAAP | $55.69M | – | – |
| Operating income (loss), three months ended September 30, 2026GAAP | $47.13M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$39.03M | – | – |
| Loss on early extinguishment of debt, three months ended September 30, 2026GAAP | −$15.42M | – | – |
| Net loss attributable to Common Shareholders of Brandywine Realty Trust, three months ended September 30, 2026GAAP | −$22.26M | – | – |
| Diluted loss per Common Share, three months ended September 30, 2026GAAP | $(0.13) | – | – |
| FFO available to common share and unitholders, three months ended September 30, 2026non-GAAP | $9.14M | – | – |
| FFO per share, fully diluted, three months ended September 30, 2026non-GAAP | $0.05 | – | – |
| Core FFO, three months ended September 30, 2026non-GAAP | $24.55M | – | – |
| Core FFO per share, fully diluted, three months ended September 30, 2026non-GAAP | $0.14 | – | – |
| Same store net operating income excluding other items, three months ended September 30, 2026non-GAAP | $61.30M | – | (0.6) % |
| Cash same store net operating income excluding other items, three months ended September 30, 2026non-GAAP | $63.09M | – | 1.7 % |
| Total revenue, nine months ended September 30, 2026GAAP | $381.6M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $369.2M | – | – |
| Operating income (loss), nine months ended September 30, 2026GAAP | $68.10M | – | – |
| Net loss attributable to Common Shareholders of Brandywine Realty Trust, nine months ended September 30, 2026GAAP | −$102.8M | – | – |
| Diluted loss per Common Share, nine months ended September 30, 2026GAAP | $(0.59) | – | – |
| Core FFO, nine months ended September 30, 2026non-GAAP | $68.17M | – | – |
| Core FFO per share, fully diluted, nine months ended September 30, 2026non-GAAP | $0.38 | – | – |
| Same store net operating income excluding other items, nine months ended September 30, 2026non-GAAP | $182.3M | – | 0.1 % |
| Cash same store net operating income excluding other items, nine months ended September 30, 2026non-GAAP | $185.4M | – | 2.1 % |
| Cash and cash equivalents as of September 30, 2026GAAP | $312.7M | – | – |
| Unsecured credit facility as of September 30, 2026GAAP | $137M | – | – |
| Secured debt, net, as of September 30, 2026GAAP | $88.01M | – | – |
| Unsecured senior notes, net, as of September 30, 2026GAAP | $1.93B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
2026 outlook
- NoteLoss per share allocated to common shareholders: $ (0.64) to $ (0.62) per share
- NoteFFO per diluted share: $ 0.45 to $ 0.47
- NoteCore FFO per diluted share: $ 0.54 to $ 0.56
- NoteYear-end Core Occupancy Range: 89-90%
- NoteYear-end Core Leased Range: 90-91%
- NoteRental Rate Mark-to-Market (accrual): 5-6%
- NoteRental Rate Mark-to-Market (cash): (2)-0%
- NoteSame Store (accrual) NOI Range: (1)-1%
- NoteSame Store (cash) NOI Range: 0-2%
- NoteSpeculative Revenue Target: $19.5 million, 100% achieved
- NoteTenant Retention Rate Range: 53-54%
- NoteProperty Acquisition Activity: None
- NoteProperty Sales Activity: $545 million, 100% achieved
- NoteDevelopment Starts: Redevelopment of one existing Uptown ATX building in Austin, Texas
- NoteShare Buyback and Bond Repurchase Activity: $120 – 140 million to be executed primarily during third and fourth quarters of 2026 based on current sales activity. $140 million of bond purchases and $14.9 million of common share repurchases achieved
- NoteAnnual earnings and FFO and Core FFO per diluted share based on 178.0 million fully diluted weighted average common shares
Capital returns
- During the quarter, the company repurchased approximately 4.7 million common shares at an average price of $3.19 per share, totaling $14.9 million.
- The annual savings on dividend payments is approximately $1.5 million.
- The Board declared a quarterly dividend distribution of $0.08 per common share, payable on October 22, 2026 to shareholders of record as of October 8, 2026.
- Distributions paid per common share were $0.08 for the three months ended September 30, 2026 and $0.24 for the nine months ended September 30, 2026.
What drove it
- Core portfolio occupancy was 89.0% and leased rate was 90.5% at September 30, 2026.
- The company signed 372,000 square feet in its wholly owned portfolio and 558,000 square feet including joint ventures.
- Rental rate mark-to-market increased 10.8% on an accrual basis and 5.7% on a cash basis.
- The company completed four wholly owned office-property sales with gross sales prices of $41.5 million, $151.0 million, $97.1 million and $240.0 million.
- Solaris was sold on September 30, 2026 for a gross sales price of $136.0 million; the company received net cash proceeds of $16.3 million for its share in the venture after repayment of the $76.5 million construction loan and its preferred partner.
- One Uptown was 97% leased as of October 21, 2026.
Concerns
- Core FFO per share declined to $0.14 from $0.16 in the third quarter of 2025.
- Same-store NOI excluding other items decreased (0.6) % on an accrual basis.
- Same-store-property occupancy was 88.8% as of September 30, 2026 versus 89.8% as of September 30, 2025.
- Third-quarter results included a $29.1 million impairment charge and $15.4 million loss on early extinguishment of debt.
- Interest expense was $(39,035) for the third quarter of 2026 versus $(32,914) for the third quarter of 2025.
- The company adjusted 2026 loss-per-share guidance from $(0.45) - $(0.41) per share to $(0.64) – $(0.62) per share.
What to watch
- Progress toward the 89-90% year-end core occupancy range and 90-91% year-end core leased range.
- Delivery of the $19.5 million speculative revenue target, stated as 100% achieved.
- Rental rate mark-to-market against the 5-6% accrual target and (2)-0% cash target.
- Same-store NOI against the (1)-1% accrual range and 0-2% cash range.
- Execution of $120 – 140 million of share buyback and bond repurchase activity during the third and fourth quarters of 2026.
- Core FFO per diluted share within the $0.54 to $0.56 2026 guidance range.
Balance sheet and cash flow
- Cash and cash equivalents were $312,743 as of September 30, 2026, compared with $32,284 as of December 31, 2025.
- Secured debt, net was $88,009 as of September 30, 2026, compared with $234,079 as of December 31, 2025.
- Unsecured credit facility balance was $137,000 as of September 30, 2026, compared with — as of December 31, 2025.
- Unsecured senior notes, net were $1,934,858 as of September 30, 2026, compared with $2,073,394 as of December 31, 2025.
- During the quarter, the company retired $50 million of 8.80% Guaranteed Notes Due 2028 and $90 million of 8.875% Guaranteed Notes Due 2029, recording $9.2 million loss on extinguishment of debt.
- On September 29, 2026, the company repaid its $57.3 million C-PACE loan and recorded a $6.3 million loss on extinguishment of debt.
Analysis
Third-quarter GAAP revenue was $125,638, compared with $121,417 in the third quarter of 2025, while operating expenses were $134,197 compared with $96,255. Operating income was $47,130, supported by a $55,689 net gain on disposition of real estate, but the company reported a net loss attributable to Common Shareholders of Brandywine Realty Trust of $(22,262), or $(0.13) per diluted Common Share. The quarter included a $29,057 provision for impairment and $(15,417) loss on early extinguishment of debt.
Recurring operating measures softened. Core FFO was $24,555, or $0.14 per fully diluted share, versus $28,031, or $0.16 per share, a year earlier. Same-store NOI excluding other items was $61,304 versus $61,678, with the company reporting a (0.6) % year-over-year change on an accrual basis. Cash same-store NOI excluding other items was $63,086 versus $62,055, and increased 1.7 %. Same-store occupancy was 88.8% at September 30, 2026 versus 89.8% a year earlier.
Leasing and rental-rate activity provided offsetting support. The core portfolio was 89.0% occupied and 90.5% leased, and the company signed 372,000 square feet in its wholly owned portfolio. It reported accrual rental-rate growth of 8.4% on renewal leasing and 13.5% on new leasing during the quarter. Management also cited 163,000 square feet of executed new leasing scheduled to commence after September 30, 2026. Tenant retention was 50%, while net absorption was negative (7,000) square feet.
Capital activity was central to the quarter. The company stated it completed $681 million of sales versus its $305 million business plan target, including the $136.0 million sale of Solaris. It retired $50 million of 2028 Bonds and $90 million of 2029 Bonds, repaid a $57.3 million C-PACE loan, and reported a $390 million reduction in combined debt during the quarter. Cash and cash equivalents were $312,743 at September 30, 2026 and the unsecured credit facility balance was $137,000. The company also repurchased approximately 4.7 million common shares totaling $14.9 million.
Guidance now calls for 2026 loss per share allocated to common shareholders of $ (0.64) to $ (0.62) per share and Core FFO per diluted share of $0.54 to $0.56. The company said the loss-per-share adjustment was primarily due to the loss associated with the $240 million Philadelphia sales transaction and the third-quarter debt-extinguishment loss. The forward operating framework calls for 89-90% year-end core occupancy, 90-91% core leased, 5-6% accrual rental-rate mark-to-market, (1)-1% same-store accrual NOI and $19.5 million of speculative revenue, stated as 100% achieved.
Management, verbatim
We are pleased with our 2026 business plan progress highlighted by raising the midpoint of our speculative revenue target for the second time this year to $19.5 million, or 11.4% higher than our initial business plan.
Gerard H. Sweeney, President and Chief Executive Officer
Our capital markets plan is completed and we have executed $681 million of sales versus our $305 million business plan target.
Gerard H. Sweeney, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported income-statement, FFO, NOI and balance-sheet metrics
- Gross margin
- Operating cash flow
- Free cash flow
- Segment revenue disclosures
- 2026 revenue, gross margin, operating expense and tax-rate guidance
- Previous-release outlook required to compare actual results with prior guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K reporting Brandywine's Q3 operating results, debt retirements, share repurchases, and revised Core FFO guidance.
Ticker impact
Brandywine Realty Trust disclosed Q3 2026 results and updated its 2026 Core FFO guidance to $0.54‑$0.56 per diluted share.
likely modest downside as market prices in the issued guidance ceiling
Guidance revision is a primary disclosure with material numbers; investors will reassess valuation, and the reduced upside may trigger sell pressure.
Market effects
May weigh on other office REITs as guidance tightening signals sector pressure.
Limited to U.S. commercial real estate market.
Minimal global impact beyond REIT sector.
Counterpoint
If the debt reduction and strong cash position are emphasized, the guidance cut could be seen as a temporary blip, supporting a buy.
Key entities
- companyBrandywine Realty Trust
U.S. office REIT reporting Q3 2026 results.
