Brandywine Realty Trust reported a net loss attributable to common shareholders of $36.9 million, or $0.21 per share, in Q4 2025, compared with a loss of $44.8 million, or $0.26 per share, in Q4 2024. Funds from operations (FFO) available to common shareholders totaled $14.6 million, or $0.08 per diluted share, down from $29.9 million, or $0.17 per diluted share, a year earlier. The quarter included a $12.2 million, or $0.07 per share, charge on early extinguishment of a $245 million secured loan. For the full year, net loss was $179.5 million, or $1.03 per share, and FFO was $93.4 million, or $0.52 per diluted share, impacted by $63.4 million of non-cash impairment charges related to Texas assets and the aforementioned debt charge.

Occupancy in Brandywine’s core portfolio of 60 properties remained steady at 88.3%, with leases executed covering 90.4% of space including post-year-end commencements. In Q4, the company signed 157,000 square feet of new and renewal leases in wholly owned assets (415,000 square feet including joint ventures), and full-year leasing reached 1.56 million square feet. Renewal rental rates rose 16.8% and new/expansion rates jumped 25.9% on an accrual basis, driving same-store NOI increases of 2.4% (accrual) and 3.2% (cash). Tenant retention was 54% in Q4 and 64% for full year 2025.

Brandywine closed Q4 with no balance on its $600 million unsecured revolver and $32.3 million in cash. During the quarter, the company acquired its partners’ preferred equity in two Philadelphia assets—3151 Market Street for $65.7 million and 3025 JFK for $70.5 million—consolidating both as wholly owned and assuming a $178 million construction loan due July 2026. It also closed a $50.5 million C-PACE financing at 7.31% for 3151 Market Street and recognized a $12.2 million loss on the early repayment of a $245 million secured loan. No bond maturities occur until November 2027.

Management initiated 2026 guidance, forecasting a net loss of $0.58 to $0.66 per share and FFO of $0.51 to $0.59 per diluted share. The business plan emphasizes recapitalizing remaining development joint ventures in Austin, accelerating asset recycling, and using sale proceeds primarily to reduce debt and opportunistically repurchase undervalued common shares. This marks a strategic pivot from pure office exposure toward a more diversified portfolio mix and enhanced liquidity management.