Brandywine Realty Trust narrows annual FFO guidance
The real estate investment trust reported a first-quarter net loss of $48.9 million.
Brandywine Realty Trust (BDN) reported a widening quarterly loss as tenant retention declined despite a spike in new leasing activity. The commercial real estate firm saw its net loss attributable to common shareholders reach $48.9 million in the first quarter of 2026, compared to a loss of $27.4 million in the same period a year earlier.
Funds from Operations (FFO) available to common shareholders fell to $20.0 million, or $0.11 a share, down from $24.7 million, or $0.14 a share, in the first quarter of 2025.
Leasing volume provided a point of strength, with wholly owned activity totaling 268,000 square feet. The company said this represented the highest level of activity since the fourth quarter of 2024. Core portfolio occupancy remained flat at 88.3% compared to the end of 2025, though it sat slightly below the 88.8% occupancy recorded in March 2025.
Rental rate mark-to-market increased 4.1% on an accrual basis. This growth slowed from the 20.9% accrual increase reported in the fourth quarter of 2025. Same store net operating income rose 0.8% on an accrual basis and 3.3% on a cash basis compared to the prior year.
Tenant stability weakened as the retention ratio in the core portfolio fell to 45%. The figure had been 54% in the fourth quarter of 2025 and 68% in the third quarter of 2025.
Brandywine narrowed its 2026 FFO guidance range to $0.52 - $0.58 a share from a previous range of $0.51 - $0.59 a share. The company adjusted its 2026 loss per share guidance to $(0.76) – $(0.70) a share, compared to the prior range of $(0.66) - $(0.58) a share.
The company completed the disposition of an office building and parking garage in Austin, Texas, on July 9, 2026. The 206,000 square foot property sold for $151.0 million, resulting in net proceeds of approximately $146.1 million.