10-Q · May 1, 2026
Brandywine Realty Trust reported strong Q1 2026 results, exceeding revenue estimates of $115.6 million with actual revenue of $127 million. The reported EPS of $0.11 also beat the consensus estimate of -$0.08.…
Earnings analysis · 10-Q
BDN earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Brandywine delivered Q2 revenue growth of 7.0% to $129.0 million and materially improved GAAP results, with the per-share loss narrowing to $0.18 from $0.51 a year earlier, largely because the prior year included $63.4…
Read full summary
Brandywine delivered Q2 revenue growth of 7.0% to $129.0 million and materially improved GAAP results, with the per-share loss narrowing to $0.18 from $0.51 a year earlier, largely because the prior year included $63.4 million of impairments. Core occupancy improved modestly, but same-store margins declined 200 basis points as operating expenses rose, and Austin occupancy fell sharply to 66.6%. Liquidity appears adequate at $463.4 million including revolver availability, but elevated debt, a $1.199 billion 2027-28 maturity wall, higher interest expense, and S&P's negative outlook constrain the outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.18
What stood out
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Revenue grew 7% year over year
Q2 total revenue rose $8.4 million, or 7.0% year over year, to $129.0 million from $120.6 million; sequentially it increased from $127 million in Q1 2026. Rent revenue increased $8.5 million to $122.7 million, led by $6.4 million from consolidating the 3025 JFK and 3151 Market ventures.
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Loss and operating income improved
GAAP net loss attributable to common shareholders narrowed to $0.18 per share from a $0.51 loss in Q2 2025 and from a $0.28 loss in Q1 2026. Operating income was $19.5 million, versus a $41.3 million operating loss a year ago, when the company recorded $63.4 million of impairments.
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Core occupancy increased
Core-property occupancy reached 89.1%, up from 88.6% a year earlier. Philadelphia CBD occupancy rose to 95.2% from 93.5%, Pennsylvania Suburbs to 89.9% from 87.8%, and Other to 94.4% from 88.7%.
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Operating cash flow and liquidity rose
Six-month operating cash flow increased $5.1 million year over year to $45.8 million. Cash and cash equivalents plus available revolver capacity totaled $463.4 million at June 30, consisting of $37.9 million of cash and $425.5 million of unused facility capacity.
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Near-term construction loan was refinanced
The company retired its $178.0 million construction loan on June 23 and closed a $90.0 million Avira secured term loan on June 24, fixed at 5.81% through its June 2033 maturity.
What to watch
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Expense inflation compressed property margins
Same-store operating margin fell to 61.7% in Q2 2026 from 63.7% in Q2 2025 as higher operating costs outpaced same-store revenue growth; total property operating expense increased $7.3 million, or 23.3%, to $38.6 million.
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Austin occupancy remains under pressure
Austin core occupancy was 66.6%, down 11.1 percentage points from 77.7% a year earlier. The Austin segment also accounted for all $63.4 million of impairment charges recognized in the first half of 2025, underscoring ongoing market pressure.
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Leverage and refinancing burden remain high
Total debt increased to $2.625 billion at June 30, 2026 from $2.564 billion at December 31, 2025, while six-month interest expense rose $18.6 million, or 29.0%, to $82.8 million. Principal maturities include $849.0 million in 2027 and $350.0 million in 2028.
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Ratings pressure may raise funding costs
S&P's outlook was Negative at June 30, 2026, with a BB- long-term debt rating; a further downgrade could limit unsecured-market access and raise borrowing costs. The 2028 Notes coupon will increase to 8.80% effective September 2026 following the S&P downgrade.
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No formal risk-factor updates
No material changes to the formal risk factors were reported versus the 2025 Form 10-K. Nonetheless, management states that inflation, higher rates and remote-work patterns have contributed to negative office-market lease absorption and downward pressure on asset values.
Management's outlook
No quantitative earnings or revenue outlook was provided in this 10-Q. Management expects primary remaining-2026 capital uses to fund current development and redevelopment projects, while noting that vacancy, effective rents and tenant-installation costs could deteriorate during the remainder of 2026 and beyond.
Earlier filings 4
10-K · February 23, 2026
The 2025 Form 10-K re-states a strategy focused on concentrated, transit-oriented ownership and selective redevelopment in four core regions (Philadelphia CBD, Pennsylvania Suburbs, Austin, Other) and emphasizes growing…
10-Q · July 28, 2025
Brandywine reported Q2 revenue of $120.571M, down modestly from $125.346M in Q2 2024, but posted a large GAAP loss driven by a $63.369M impairment charge resulting in operating loss of $41.327M and net loss attributable…
10-Q · April 30, 2025
Brandywine reported Q1 revenue of $121.516M and a GAAP net loss of $27.056M (loss per share $0.16). Operating income fell to $15.161M and interest expense rose to $31.845M, driving a deterioration in results and a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.