Brandywine Realty Trust : First Quarter 2025 Investor Update

Published: 2025-05-29 13:31:17 ET BDN

Published on 05/29/2025 at 13:31

Brandywine Realty Trust is an owner/developer of premier workplaces and innovation hubs, encompassing a collection of uses that fuel our ecosystems. With a focus on stable and growing markets, our core portfolio is set to benefit from the flight to quality underscoring today's market.

Strategic Focus Areas

Portfolio Stability Maintaining Sufficient Liquidity Development Stabilization

4% Annual Rollover through 2026

92% of 2025 Spec Revenue projection achieved

306,000 square feet of forward lease commencements

Our Core Markets

Greater Philadelphia, PA (77% of NOI)

#1 growth rate of highly educated population among 25 largest metros since 2008, at 155%

42% of residents have a Bachelor's Degree or higher

Philadelphia metro startups raised $3.3B across 444 deals in 2024, a 37.5% increase

over 2023

No unsecured bond maturities until November 2027

No operating JV maturities in near term

Disposition Program progressing

Austin, TX (15% of NOI)

#1 best performing economy among top 50 Metros over 5 years: GPD +39%

#1 best performing job market of top 50 Metros (2/2020-11/2023) (US Bureau of Labor Statistics and Opportunity Austin)

Y-O-Y added 22.7K jobs or 1.7% growth

Nationally tops in percentage population growth 9

Tour and proposal volume increasing

Residential lease up progressing with stabilization in 2025

15.5% revenue boost upon stabilization

Life Science venture capital deals totaled

$870.2M in 2024

$6.5B in life science venture capital funding 2019-2024, 8th highest amount in the world

$7.3B in NIH Funding 2019-2024

2,500+ clinical trials completed in the region 2019-2024

Growing Life Sciences sector represents 1,200 companies and 55,000 employees in the region

Philadelphia area universities account for 9% of all life science PhDs

https://www.brandywinerealty.com

years in a row; 2010-2020 30.9% growth from 1.77M to

2.2M people; projected growth to 2.8M by 2030 and 4M by 2040

#2 fastest growing region at 2.1% growth for cities over 1M people (City of Austin 4/24)

Apple expanding again at its new campus on Parmer Lane by 415K SF in two buildings

Samsung investing $45B into new chip making plants and improvements to existing plant; this will bring their total investment in the Austin area to $63B

Tesla at 23K employees in Austin; may triple in coming years

Headquarters or significant operations for Tesla, X Twitter, Neuralink and Boring Company are in and around Austin

2929 ARCH STREET, PHILADELPHIA, PA 19104 | 610.325.5600

Our core portfolio is stable with a growing leasing pipeline exceeding 2 million square feet and vacancy concentrated in 8 properties

2025 flight-to-quality deals represent 60% of our new leasing activity

4Q'24

Operating Metrics Compared to

Office Peers

CATEGORY

BRANDYWINE

*OFFICE PEERS

Cash Leasing MTM

1.1%

0.1%

GAAP Leasing MTM

5.9%

8.4%

Office Occupancy

87.8%

84.6%

Cash Same Store NOI %

0.5%

-1.3%

GAAP Same Store NOI %

-1.6%

-0.3%

*Source: Bank of America Global Research

Wholly Owned(1)

Region

# of Properties

Square

Feet

% of Total SF

1Q '25

% of NOI

%

Occupied

%

Leased(2)

Phila. - CBD

6

2,806,098

23.2%

25.1%

92.4%

96.7%

Phila. - Univ .City

5

1,920,240

15.9%

21.7%

94.3%

95.4%

PA Suburbs

28

3,554,944

29.4%

28.0%

87.9%

89.9%

Austin, TX

16

2,184,829

18.0%

15.1%

74.5%

75.5%

Subtotal

55

10,466,111

86.5%

89.9%

87.5%

89.8%

Other

8

1,464,438

12.1%

7.9%

80.4%

85.1%

Recently completed not yet stabilized

1

168,294

1.4%

2.2%

53.3%

100.0%

Total

64

12,098,843

100.0%

100.0%

Includes total number of properties and square footage, including held for sale.

Includes leases executed through 4/18/25 which will commence subsequent to 3/31/25.

Based on our current development plan, we can develop 1.0 million SF of office , 0.5 million SF of Life Science and 1,900 multi-family units with the existing buildings remaining in place.

Block A

AUSTIN, TX

66 ACRES

1.4M SF

WORKSPACE

3,700

MULTI-FAMILY UNITS

NEW

CAPMETRO STATION

250K SF

RETAIL & HOSPITALITY

1.3M SF

LIFE SCIENCE

11 ACRES

GREENSPACE

Project Overview

Uptown ATX will be a mixed-use, 66-acre

transit-oriented community. The existing buildings total 688,000 SF of which IBM occupies 87%. Once redeveloped, the project will include office,

multi-family, hotels, retail and a new CapMetro light rail station.

Uptown ATX sits at the population

center of Greater Austin, and near the crossroads of three major highways. The area is served by

multi-modal transportation options including CapMetro light rail and bus lines.

The project will offer over 11 acres of park space, and access to more than 23 miles of existing and planned jogging trails and bike routes.

We have all required government and third- party approvals for campus-wide redevelopment.

The City of Austin recently increased our density from

3.1 FAR to 12:1 FAR and increased our maximum building height from 180 feet to 491 feet. Density can be shared between blocks of development as needed.

One Uptown Project Status (Block A)

A mixed-use development featuring a 14-story office tower comprised of one level of below-grade parking, lobby and retail level, 6 above-grade parking garage levels, and 8 office levels totaling 347,838 rentable square feet.

The Residential is made up of 259 units within a 13-story concrete tower and 82 units in a 5-story structure wrapping the parking structure.

A showcase amenity deck serving both the office and multi-family components of the project includes a pool, fitness center, outdoor TV's and gathering spaces.

Project Schedule

Financial Highlights

Q4 2021

$202mm

Q4 2021

$144mm

Q1 2024

$207mm

Q3 2024

7.2%

Q2 2026

5.1%

Q4 2025

with Canyon Real Estate

Joint Venture Formation:

Total Development Costs - Office:

Construction Commencement:

Total Development Cost - Residential:

Completion - Office:

Construction Loans:

Completion - Residential:

Project Stabilized Cash Yield - Office:

Project Stabilization - Office:

Project Stabilized Cash Yield - Residential:

Project Stabilization - Residential:

Joint Venture Structure: Preferred equity

PHILADELPHIA, PA

Overview

We are the master developer of Schuylkill Yards, a multi-phase development of residential, life science, research and academic facilities, office, retail and hospitality space.

Adjacent to the nation's 3rd busiest rail station, the project will be one of the most transit-rich developments in the country.

Entire project is located within an opportunity zone which provides federal tax incentives. Certain phases of project can also receive state and local tax incentives.

Costs of future developments will be funded through a combination of existing liquidity, equity and debt capital raised through one or more joint venture formations.

PLANNED & IN-PROCESS LAB DEVELOPMENTS

PROJECTS

OF RESIDENTIAL

OF RETAIL SPACE

OF LIFE SCIENCE, INNOVATION AND OFFICE SPACE

OF HOTEL SPACE

OF GREENSPACE

Project Status

We have acquired the leasehold interests in three parcels of land with the ability to develop three mixed-use buildings, aggregating approximately

2.0 million square feet for $36 per FAR, or $73M.

We have a partnership with a global institutional investor to develop the first two parcels 3025 JFK (West Tower) and 3151 Market. 3025 JFK completed construction in 4Q 2023 and 3151

OUR UNIVERSITY CITY LIFE SCIENCE GROWTH

Market completed construction in 4Q 2024. These projects delivered the following:

University City is located in the #4 US life science market based on the volume of VC and NIH funding, market inventory, size of the life science workforce, and biomed degree completions

Our 50,000 SF life science incubator, B+labs, successfully opened in January 2022 and is currently 82% leased. B+labs is located directly adjacent to Schuylkill Yards in University City

We completed our graduate lab space on the 8th and 9th floors of Cira Centre, totaling 54,717 SF, and are 61% leased

200,000 SF life science/office space

417,000 SF dedicated life science

326 apartment units

LIFE SCIENCE PORTFOLIO

TODAY (1)

PRO FORMA FOR FUTURE

LIFE SCIENCE (2)

8%

25%

Bulletin Building, 3000 Market, Cira Centre, 250 King of Prussia Road, 3151 Market

Incremental SY Capacity and Uptown ATX land

Organic Life Science Growth Through Existing Land Pipeline & Convertible Assets

Ground floor retail & below grade parking

B+labs @ Cira Centre (SF): 50,000

Size (SF): 50,000 SF

Capacity: 240 Seats

Commence Operations: January 1, 2022

Manager: PA Biotech

Graduate Labs @ Cira Centre (SF): 54,717

Leased: 61%

3025 JFK | Philadelphia, PA

Ground up JV development project consisting of 200K SF of life science/ office space and 326 residential units.

$320M project cost at 6.8% cash yield.

Projected terminal value of $396M at 5.5% cap rate.

405 Colorado | Austin, TX

Ground up development of 206K SF office building with 520 space parking garage.

$122M project cost at 8.0% cash yield.

Projected terminal value of $177M at 5.5% cap rate.

250 King of Prussia | Radnor, PA

Recycled office/land holding and converted into 168K SF life science.

$104M project cost at 8.2% cash yield.

Projected terminal value of $142M at 6.0% cap rate.

Life Science Life Science

30% 32%

Residential

26%

Office

42%

Residential

29%

Office

41%

Current Pipeline Projected NOI

Composition

Projected NOI

Project Cost

High Quality Mixed-Use Land Inventory

Land bank that can deliver 10M SF potential mixed-use FAR with very low basis

Other

10%

Office

21%

Life Science

27%

Residential

42%

Disclaimer

Brandywine Realty Trust published this content on May 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 29, 2025 at 17:30 UTC.