Brandywine Realty Trust (NYSE: BDN) Narrows FFO Guidance as it Reports Second Quarterly Results.

Brandywine Realty Trust (NYSE: BDN) Narrows FFO Guidance as it Reports Second Quarterly Results.

Brandywine Realty Trust (NYSE: BDN) recently reported its financial and operating results for the 3- and 6-months period that ended on June 30, 2020. Results included a net loss of $0.3 million to common shareholders in 2Q2021 and $55.9 million in Funds from Operation.

Tenants returning to work

Gerald H. Sweeney, president, and CEO of Brandywine Realty Trust expressed the company’s excitement to see an increase in the number of their tenants returning to the workplace. He added that as physical building occupancy increases, they continue to prioritize the safety of their tenants, employees, and stakeholders. The company is making remarkable progress in its FY2021 business plan. It has narrowed its speculative revenue guidance range while increasing the midpoint by $0.5 million and is now at 98% complete at the revised midpoint.

During the quarter, the company continued to experience favorable market-to-market rents increasing by 22% and 14% on an accrual and cash basis. Based on signed leases, the company anticipates a higher occupancy during the second half of FY2021. As a result, the company is also narrowing the 2021 FFO range guidance of $1.33 to $1.41 per share to $1.34 to $1.40.

Sweeney continued by saying that the company monitors events associated with COVID 19 and is taking steps to reduce risks to Brandywine and its tenants. While the pandemic’s duration and ultimate economic impact remain unknown, the company believes that it’s on track with its 2021 business plan, which accounted for the impact of COVID 19.

Cash base collections

Below is a summary of the company’s 2Q2021 consolidated cash base collections as of July 23, 2021:

  • Most of the rental revenue has been in the form of rental deferrals to be cleared by the end of 2021.
  • 99.3% of cash-based rent due has been received from their tenants during the second quarter, representing a 99.8% collection rate from their office tenants.
  • The company has collected 58% of the rent deferrals not provided as free rent with an associated lease extension.

The company also has $59 million outstanding on its $600 million unsecured revolving credit facility as of June 30, 2021. Brandywine also reported $47.7 million of cash and cash equivalents on hand as of June 30, 2021.

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