Brandywine Realty Trust Adjusted Model w/ Lower 2026 FFO Estimate And Unchanged 2027

Research evidence excerpt

Brandywine Realty Trust Adjusted Model w/ Lower 2026 FFO Estimate And Unchanged 2027

J P M O R G A N North America Equity Research

24 June 2026

Brandywine Realty Trust Underweight

BDN, BDN US

Adjusted Model w/ Lower 2026 FFO Estimate And Price (23 Jun 26):$3.16

Unchanged 2027

REITs & Real Estate Services

We updated our BDN model. Our 2026 NAREIT FFO/share estimate is down from Anthony Paolone, CFA AC

$0.56 to $0.54 (+4.0% y/y), which is a penny below Bloomberg consensus and the (1-212) 622-6682

guidance midpoint of $0.55 (range of $0.52-0.58). Our 2027 NAREIT FFO/share anthony.paolone@jpmorgan.com

estimate is unchanged at $0.61 (+13.5% y/y), which is $0.03 higher than Michael W. Mueller, CFA

Bloomberg consensus of $0.58. Our 2026 revision is mainly driven by higher (1-212) 622-6689

interest expense (due to slightly later debt repayments and less favorable rate michael.w.mueller@jpmorgan.com

environment), somewhat offset by higher NOI from and less dilution from Hong Zhang

disposition timing. We note that BDN’s core leasing has been good, and its core (1-212) 622-6416

hongliang.zhang@jpmorgan.com

office fundamentals in its Philadelphia portfolio have performed well. We think

Nahom Tesfazghi

earnings estimates are most likely to be impacted in the next 12-18 months by (1-212) 622 4884

capital markets activity, with the potential recap of development/residential assets nahom.tesfazghi@jpmchase.com

and dispositions. Beyond this timeframe, we would watch its IBM lease expiration Daniella De Armas Rosales

that creates a drag into 2028. (1-212) 622-0050

daniella.dearmasrosales@jpmchase.com

Using an 8.9% blended assumed cap rate, we arrive at our NAV/share estimate of J.P. Morgan Securities LLC

$5. At its current stock price, we calculate an implied cap rate of 9.6%. Using our