Brandywine Realty Trust (BDN) Narrows 2023 Guidance Amid Strong Q3 Performance
Brandywine Realty Trust (NYSE:BDN) narrows 2023 FFO range to $1.15 to $1.17 per share.
BDN reports a net loss of $(21.7) million, or $(0.13) per share, including a non-cash impairment charge.
Core Portfolio is 88.3% occupied and 90.4% leased.
BDN raises over $103 million through asset sale and construction loan.
Brandywine Realty Trust (NYSE:BDN) announced its financial and operating results for the three and nine-month periods ended September 30, 2023, on October 25, 2023. The company reported strong progress on its 2023 business plan, with positive mark-to-market rent increases and controlled leasing capital costs.
Financial Highlights
BDN reported a net loss available to common shareholders of $(21.7) million, or $(0.13) per share, which includes an $11.7 million, or $(0.07) per share, non-cash impairment charge. The company's Funds from Operations (FFO) stood at $50.6 million, or $0.29 per diluted share.
Portfolio Performance
BDN's Core Portfolio was 88.3% occupied and 90.4% leased. The company signed new and renewal leases for 351,000 square feet wholly-owned and 624,000 square feet including joint ventures. The tenant retention ratio was 44%, and the rental rate mark-to-market increase was 2.8% on an accrual basis and 0.8% on a cash basis. The same store results increased 1.7% on an accrual basis and 7.0% on a cash basis.
Capital Markets Activity
BDN raised over $103 million through a $53.3 million asset sale in Austin, Texas, and a $50 million construction loan in Radnor, Pennsylvania. The company also made significant progress on its development projects, particularly the 3025 JFK Boulevard in Schuylkill Yards.
2023 Business Plan Changes
Based on the progress made on its 2023 business plan, BDN has narrowed its 2023 FFO range from $1.14 to 1.18 per share to $1.15 to $1.17 per share. The company also increased its same store NOI growth range from 0-2% to 2-3% on an accrual basis and from 2.5-4.5% to 5-6% on a cash basis.
Looking Ahead
BDN is increasing and narrowing its 2023 loss per share guidance from ($0.16) - ($0.12) per share to ($0.19) - ($0.17) per share due to property-level impairments and projected higher depreciation and amortization expense. The company is also narrowing its 2023 FFO guidance from $1.14 - $1.18 per diluted share to $1.15 - $1.17 per diluted share.
This article first appeared on GuruFocus.
