Brandywine Realty Trust cuts dividend by almost half, estimates Q4 earnings charge

• Brandywine Realty Trust has reduced its quarterly dividend from $0.15 to $0.08 per share, a decrease of 46.7%, resulting in a forward yield of 7.24.

• The company plans to prepay a $245 million secured loan set to mature in February 2028, using cash and an unsecured line of credit to streamline its operating portfolio.

• This prepayment may lead to an earnings charge of $12 million to $14 million in the fourth quarter, impacting earnings per share by approximately $0.07 to $0.09, which is not included in the 2025 earnings guidance.

• As of the latest report, Brandywine’s shares are trading at $4.42, reflecting a decline of 1.56%.

Recommendation Rating: Cautious Outlook

Brandywine Realty Trust (NYSE: BDN) has announced a quarterly dividend of $0.08 per share, reflecting a significant decrease of 46.7% from its previous dividend of $0.15. This reduction results in a forward yield of 7.24%. The dividend will be payable on October 23, with a record date of October 9, and the ex-dividend date also set for October 9.

In a statement released on September 26, the REIT indicated intentions to prepay a secured loan using a combination of its available cash, a $600 million unsecured line of credit, and other potential liquidity sources. The secured loan amounts to $245 million, with a maturity date scheduled for February 2028. It is currently backed by a portfolio of seven properties, encompassing 1.4 million square feet across various segments. The prepayment of this loan will leave Brandywine with a fully unencumbered operating portfolio.

The REIT estimated that the prepayment will incur an earnings charge in the fourth quarter, ranging from $12 million to $14 million, equating to approximately $0.07 to $0.09 per share, a cost that is not included in their 2025 earnings guidance.

As of Friday morning, Brandywine’s shares experienced a decline of 1.56%, trading at $4.42. For further insights, the BDN Dividend Scorecard, Yield Chart, and Dividend Growth metrics are available for review.