BRANDYWINE REALTY TRUST Q1 FY2025 earnings call

• First quarter FFO was $0.14 per share. • They had 92% of their 2025 spec revenue target executed at midpoint. Quarterly retention rate was 55% and leasing activity was approximately 340,000 square feet. • Occupancy stood at 86.6% occupied and 89.2% leased. Philadelphia was 93% occupied and 96% leased; Pennsylvania suburbs were 88% occupied and 90% leased; Austin was 75% occupied but had a strong leasing pipeline. • Development projects: Schuylkill Yards commercial component is expected to stabilize in Q1 2026; Avira residential tower is 96% leased and expected to stabilize in Q2 2025; 3151 Life Science project is projected to stabilize in Q3 2026; Uptown ATX office component is expected to stabilize in Q2 2026; Solaris House residential is expected to stabilize in Q4 2025. • Liquidity: They prepayed a $70 million unsecured term loan and had $65 million outstanding on their $600 million unsecured line of credit. • Market trends: There was a flight to quality, improving real estate markets, healthy tour activity, and rent levels/concessions in line with the business plan.

Brandywine Realty Trust's first quarter FFO was $0.14 per share. They executed 92% of their 2025 spec revenue target midpoint. Quarterly retention rate was 55%, with leasing activity approximating 340,000 square feet, including 235,000 square feet in the wholly owned portfolio and 105,000 square feet in joint ventures. Occupancy ended the quarter at 86.6% occupied and 89.2% leased. Philadelphia was 93% occupied and 96% leased; Pennsylvania suburbs were 88% occupied and 90% leased; Austin was 75% occupied. Mark-to-market was 8.9% on a GAAP basis and 2.3% on a cash basis. Capital ratio was 12.2%. Liquidity-wise, they prepayed their $70 million unsecured term loan and had $65 million outstanding on their $600 million unsecured line of credit.

• Second quarter property-level operating income was projected to total approximately $70 million, slightly above the first quarter due to lower seasonal operating expenses. • FFO contribution from joint ventures for the second quarter was projected to be a negative $5 million, a sequential decrease due to one-time non-recurring income in the first quarter. • Full year business plan included speculative sales activity totaling $50 million, weighted towards the second half of the year, with no property acquisitions. • 2025 CAD payout ratio was impacted by deferred tenant improvement allowances and preferred returns, but expected to improve as developments stabilize. • Capital plan included $180 million in recurring capital spend, funded by cash flow after interest payments, speculative asset and land sales, and construction loan proceeds.

• Macro environment uncertainty was impacting decision-making processes. • Tariffs were affecting contractor pricing and the timing of tenant improvement work. • The Life Science market was facing challenges due to a challenging fundraising climate and public policy uncertainty. • Uncertainty around federal government actions could affect tenants like the GSA.

Q: Anthony Paolone with JPMorgan asked about the pipeline, particularly in Austin.

A: Gerard Sweeney said there was increased tour activity, interest from technology, financial service, and emerging Life Science companies, with the pipeline ranging from small to large tenants.

Q: Anthony Paolone then asked about real-time anecdotes on decision-making amid the macro backdrop.

A: Gerard Sweeney said macro uncertainty was slowing decision-making but larger prospects weren't pausing, though it could change.

Q: Steve Sakwa with Evercore ISI asked about bucketing the pipeline between operating portfolio and developments.

A: Gerard Sweeney discussed the operating portfolio pipeline being ~1.7-1.8 million sq ft, development pipeline details including Schuylkill Yards, Austin, and 3151.

Q: Steve Sakwa asked about 300 Delaware's economics.

A: Gerard Sweeney said the NOI loss was minimal, eligible for federal financing, and yield would be ~7.5% with federal subsidy.

Q: Seth Bergey with Citi asked about dispositions and buyer pool composition.

A: Gerard Sweeney said they had properties in Austin on the market, with a mix of institutional and private equity buyers emerging.

Q: Michael Lewis with Truist Securities asked about recapitalizing development projects and NAV discount.

A: Gerard Sweeney talked about development execution, market dynamics, and strategic moves like mixed-use development.

Q: Gabrielle Horvath with KeyBanc Capital Markets asked about GSA as a tenant.

A: Thomas Wirth discussed the Cira Square joint venture, GSA lease with IRS, occupancy, and ongoing dialogue with GSA.

Q: Dylan Burzinski with Green Street asked about Spark Therapeutics layoffs.

A: Gerard Sweeney said Spark had a strong lease credit, weighted average remaining term of 92 months, and no early termination rights.