third quarter 2026
Filed Oct 22, 2026Third-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.