Brandywine Realty Trust Reports Revenue Decline and Net Loss in Q2 2025

Brandywine Realty Trust reported a significant decline in financial performance for the second quarter of 2025, with total revenue of $120.6 million, down 3.8% from $125.3 million in the same period last year. The decrease was primarily driven by a reduction in rental income, which fell to $114.2 million from $118.0 million, attributed to the sale of several properties in previous quarters. The company also recorded a net loss of $88.9 million, compared to a net income of $30.3 million in the prior year, resulting in a basic loss per share of $0.51, a stark contrast to the earnings of $0.17 per share reported in the same quarter of 2024.

In terms of operational metrics, Brandywine's occupancy rate for its core properties improved slightly to 88.6% as of June 30, 2025, compared to 87.3% a year earlier. The company managed a total of 63 properties with approximately 11.8 million net rentable square feet. However, the company faced challenges with negative absorption of 13,134 square feet during the quarter, indicating a struggle to retain and attract tenants in a competitive market. The tenant retention rate improved to 81.9%, up from 67.1% in the previous year, reflecting efforts to maintain existing tenants amid market pressures.

Strategically, Brandywine Realty Trust has been active in managing its portfolio, including the sale of a 120,559 square foot office property in Austin, Texas, for $17.6 million. The company recognized significant impairment losses totaling $63.4 million during the quarter, primarily related to properties in the Austin segment, which reflects ongoing challenges in asset valuations and market conditions. The company also reported a decrease in third-party management fees, which fell to $4.9 million from $5.7 million, further impacting overall revenue.

Looking ahead, Brandywine Realty Trust remains focused on stabilizing its operations and enhancing its portfolio. The company has indicated that it will continue to seek opportunities for revenue growth through increased occupancy and rental rates, despite the challenging macroeconomic environment characterized by inflation and rising interest rates. The company maintains a liquidity profile that includes $122.6 million in cash and cash equivalents, along with $560.8 million available under its unsecured credit facility, positioning it to navigate upcoming capital needs and potential investment opportunities.