Brandywine Realty Trust reported its financial results for the three and nine months ended September 30, 2024, revealing significant challenges and strategic developments. For the third quarter of 2024, the company generated revenue of $131.8 million, a slight increase from $129.4 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenue decreased to $383.6 million from $384.5 million year-over-year.
Rental income for the third quarter fell to $118.0 million from $121.7 million in 2023, contributing to a net loss of $165.7 million, compared to a net loss of $21.6 million in the prior year. The nine-month net loss also widened to $151.9 million from $39.6 million in 2023. The basic loss per common share for the third quarter was $(0.96), a substantial increase from $(0.13) in the previous year.
The company recognized a provision for impairment of $38.0 million in the third quarter, significantly higher than the $11.7 million recorded in the same quarter of 2023. This impairment was primarily attributed to three properties, two located in Austin, Texas, and one in another segment. Additionally, Brandywine's operating income turned negative at $(9.5 million) for the third quarter, down from a positive $14.3 million in 2023.
Brandywine's total real estate investments decreased to $2.54 billion as of September 30, 2024, from $2.68 billion at the end of 2023. Operating properties also saw a decline, valued at $3.41 billion compared to $3.54 billion previously. Cash and cash equivalents dropped to $36.5 million from $58.3 million, while total liabilities increased to $2.49 billion from $2.41 billion.
Strategically, Brandywine Realty Trust sold the Plymouth Meeting Executive Center for $65.5 million, receiving $44.1 million in net cash proceeds. The company also recognized impairment losses totaling $34.1 million on three properties during the quarter. In terms of financing, Brandywine issued $400 million in 8.875% Guaranteed Notes due 2029, which contributed to increased interest expenses.
The company’s occupancy rate for core properties decreased to 87.2% from 88.3% year-over-year, with a tenant retention rate of 42.0%, down from 44.1%. Despite these challenges, Brandywine Realty Trust continues to manage a diverse portfolio of properties, primarily located in key markets such as Philadelphia, Austin, and Washington, D.C.
About BRANDYWINE REALTY TRUST
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