BDN Q3 FY2026 earnings: results, stock reaction and implied move

Reported results

Net loss available to common shareholders: $(22.3) million or $(0.13) per share (GAAP), including impairment charge of $29.1 million ($(0.17) per share), net gains on disposition of real estate of $55.7 million ($0.32 per share), and loss on early extinguishment of debt of $(15.4) million ($(0.09) per share)
Core Funds from Operations (Core FFO): $24.6 million or $0.14 per diluted share (non-GAAP), excluding $(15.4) million loss on early extinguishment of debt
Core Portfolio: 89.0% occupied and 90.5% leased; rental rate mark-to-market increased 10.8% on accrual basis and 5.7% on cash basis; same store NOI decreased (0.6)% on accrual basis and increased 1.7% on cash basis
Disposition activity: $681 million of property sales completed versus $305 million business plan target, including $240.0 million sale of Philadelphia office property, $151.0 million sale of Austin office property, and $136.0 million sale of Solaris residential project
Capital markets activity: Retired $140 million of bonds at weighted-average rate of 8.67%; repurchased 4.7 million common shares at average price of $3.19 per share totaling $14.9 million; leverage metric Net Debt/EBITDA improved to 7.6x from 9.0x in prior quarter
One Uptown office venture in Austin, Texas now 97% leased; $176 million cash on hand and no outstanding balance on $600 million unsecured line of credit as of September 30, 2026

Guidance

2026 loss per share guidance (GAAP): $(0.64) to $(0.62) per share
2026 Core FFO guidance (non-GAAP): $0.54 to $0.56 per diluted share
2026 FFO guidance (non-GAAP): $0.45 to $0.47 per diluted share
Year-end Core Occupancy Range: 89-90%
Year-end Core Leased Range: 90-91%
Rental Rate Mark-to-Market (accrual): 5-6%
Rental Rate Mark-to-Market (cash): (2)-0%
Same Store (accrual) NOI Range: (1)-1%
Same Store (cash) NOI Range: 0-2%
Speculative Revenue Target: $19.5 million (100% achieved)
Tenant Retention Rate Range: 53-54%
Property Sales Activity: $545 million (100% achieved)
Share Buyback and Bond Repurchase Activity: $120-140 million to be executed primarily during third and fourth quarters 2026; $140 million of bond purchases and $14.9 million of common share repurchases already achieved

Notes

Adjustment to 2026 guidance: Prior FFO guidance of $0.53-$0.57 per diluted share changed to Core FFO range of $0.54-$0.56 per diluted share, which excludes losses on early extinguishment of debt of $15.4 million ($0.09 per diluted share). Prior loss per share guidance of $(0.45)-$(0.41) adjusted to $(0.64)-$(0.62) due to Philadelphia property sale loss and debt extinguishment loss in Q3. Nine-month 2026 Core FFO: $68.2 million or $0.38 per diluted share versus $78.8 million or $0.44 per diluted share in nine months 2025. Q3 2026 payout ratio: 57.1% (common share distribution of $0.08 / Core FFO per diluted share of $0.14); nine-month 2026 payout ratio: 63.2% (distribution of $0.24 / Core FFO per diluted share of $0.38).

Price and volatility reaction

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-22 (8-K, Item 2.02). Read the original filing on sec.gov.

Brandywine Realty Trust (BDN) Q3 FY2026 earnings