Shares of Brandywine Realty Trust (NYSE: BDN) plummeted 13.64% on Tuesday, October 23, 2024, following the company's disappointing third-quarter earnings report and a significant reduction in its full-year guidance.
The real estate investment trust reported a quarterly adjusted loss of $0.96 per share for the quarter ended January 1, missing analysts' estimates of $0.05 earnings per share by a wide margin. The company also posted a quarterly net loss of $165.5 million, underperforming compared to the same period last year.
While Brandywine's revenue rose 1.9% year-over-year to $131.78 million, it fell short of Wall Street's expectations of $133.23 million, reflecting ongoing challenges in certain markets and headwinds affecting the commercial real estate sector.
The company also lowered its 2024 funds from operations (FFO) guidance to now be between $0.89 and $0.92 per share, down from the prior outlook of $0.91 to $0.96. Analysts surveyed by Capital IQ had expected $0.92. The reduced guidance was primarily due to the removal of expected land sale gains of around $5 million from the company's plans.
However, Brandywine maintained a relatively optimistic tone on improving market conditions and the strength of its portfolio positioning. The company highlighted that leasing activity and tour volumes increased during the quarter, with a significant portion of new deals representing tenants moving up the quality curve. Additionally, Brandywine raised its annual retention rate guidance, citing tenant expansions and tenants opting to stay that were initially expected to leave.
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