Brandywine Realty Trust cuts dividend by 47%, plans to prepay debt

PHILADELPHIA - Brandywine Realty Trust (NYSE:BDN) announced Friday it will reduce its quarterly cash dividend by 47% to $0.08 per share from $0.15 previously, payable on October 23 to shareholders of record as of October 9. The reduction comes despite the company’s impressive 32-year streak of maintaining dividend payments, according to InvestingPro data, which shows the REIT’s previous dividend yield was approximately 13.6%.

The real estate investment trust said the dividend reduction, which brings the annual rate to $0.32 per share from $0.60, is expected to help retain approximately $50 million in cash that will be directed toward "accretive investment activities" including portfolio investments, development project recapitalization, and improving liquidity. This strategic move comes as InvestingPro analysis indicates the company maintains a healthy current ratio of 2.78, suggesting strong short-term liquidity position despite overall weak financial health metrics.

Additionally, Brandywine plans to prepay a $245 million secured loan in October that was scheduled to mature in February 2028. The loan is secured by seven properties totaling 1.4 million square feet across several segments. The company will use a combination of cash on hand, its $600 million unsecured credit line, and other liquidity sources for the prepayment. With total debt of approximately $2.3 billion and a debt-to-equity ratio of 2.66, this prepayment represents a significant step in the company’s debt management strategy. For detailed analysis of Brandywine’s financial position and future prospects, investors can access comprehensive research reports on InvestingPro.

The prepayment is expected to result in a fourth-quarter earnings charge of $12-$14 million, or $0.07-$0.09 per share, which is not included in the company’s 2025 earnings guidance.

Jerry Sweeney, President and CEO of Brandywine, stated that the prepayment will fully unencumber the company’s consolidated operating portfolio and is expected to increase unencumbered annual cash flow by approximately $45 million while providing "additional asset-level leasing flexibility."

The company indicated the revised dividend level is expected to be maintained "for the foreseeable future."

Brandywine Realty Trust owns, develops, leases, and manages 122 properties comprising 19.0 million square feet primarily in Philadelphia and Austin, according to the press release statement.

The company plans to release third-quarter earnings after market close on October 22, followed by a conference call on October 23.

In other recent news, Brandywine Realty Trust reported a net loss of $89 million, or $0.51 per share, for the second quarter of 2025. The company recorded funds from operations of $26.1 million, or $0.15 per diluted share. Despite exceeding analysts’ expectations with an actual earnings per share (EPS) of $0.4359 against a forecast of -$0.1907, revenue slightly missed projections, coming in at $114.2 million compared to the expected $114.26 million. Truist Securities downgraded Brandywine’s stock from Buy to Hold, citing concerns over slow development lease-up and rising interest rates. The firm’s price target was adjusted from $5.00 to $4.00. These developments have raised questions about Brandywine’s financial leverage and earnings stability. Investors are closely monitoring these recent updates for potential impacts on the company’s future performance.

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