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BDN

Brandywine Realty Trust NYSE:BDN Stock Report

Last Price

US$6.75

Market Cap

US$1.2b

7D

-10.0%

1Y

-51.0%

Updated

30 Sep, 2022

Data

Company Financials +
BDN fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance1/6
Financial Health0/6
Dividends6/6

BDN Stock Overview

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Austin and Washington, D.C.

Brandywine Realty Trust Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brandywine Realty Trust
Historical stock prices
Current Share PriceUS$6.75
52 Week HighUS$14.88
52 Week LowUS$6.69
Beta1.12
1 Month Change-15.94%
3 Month Change-30.70%
1 Year Change-50.98%
3 Year Change-54.18%
5 Year Change-62.12%
Change since IPO50.00%

Recent News & Updates

Sep 11

Brandywine Realty Trust: Lock In The 9.3% Dividend Opportunity

Summary Due to high inflation and fears of an upcoming recession, BDN is currently offering a 10-year high dividend yield of 9.3%. The dividend is well covered by cash flows, with a solid payout ratio of 56%. BDN is trading at a 10-year low price-to-FFO ratio of 6.1. As soon as inflation begins to subside, BDN will greatly reward its shareholders. Advantages of Brandywine in Philadelphia (Investor Presentation) The stock of Brandywine Realty Trust (BDN) has plunged 41% this year due to the impact of inflation on the REIT and fears of an upcoming recession. While the trust is facing some strong headwinds right now, it has been sold off to the extreme. It is trading at a 10-year low price-to-FFO ratio of 6.1 and is offering a 10-year high dividend yield of 9.3%, which is well covered, with a payout ratio of only 56%. Therefore, the investors who can wait patiently for inflation to subside are likely to be highly rewarded in the upcoming years. The reasons behind the plunge Inflation has skyrocketed to a 40-year high this year due to the unprecedented fiscal stimulus packages offered by the government in response to the pandemic as well as the invasion of Russia in Ukraine. Consequently, the Fed is in the process of raising interest rates aggressively in an effort to lead inflation back to its normal range. Higher interest rates are likely to increase the interest expense of Brandywine significantly. Indeed, the company recently lowered its guidance for its annual FFO per share from $1.37-$1.45 to $1.36-$1.40 due to its expectations for higher interest expense in the upcoming quarters. It is important to note that Brandywine has a high debt load, with a leverage ratio (Net Debt to EBITDA) of 7.4. In addition, its net debt (as per Buffett, net debt = total liabilities – cash – receivables) stands at $2.1 billion, which is 150% of the market capitalization of the stock. As a portion of the debt of Brandywine will mature in the upcoming years, the company will have to refinance that debt at higher interest rates. Fortunately, management recently stated that it intends to sell some non-core assets in order to reduce the debt load and mitigate the effect of higher interest rates. It is also worth noting that the effect of higher interest rates on the bottom line is limited, as is estimated at $0.03 per share for this year. To cut a long story short, the amount of debt of Brandywine is high but seems manageable thanks to the high-quality properties of the REIT. Brandywine generates 74% of its operating income in Philadelphia, which offers some key advantages to the REIT. BDN competitive advantages (Investor Presentation) For instance, Philadelphia attracted $8.1 billion of venture capital deals last year, the 5th highest performance in the whole country. In addition, 80% of the biotechnology companies in the U.S. have offices in Philadelphia. All the characteristics of Philadelphia mentioned in the slide above result in Brandywine having a fairly resilient property portfolio. Another reason behind the plunge of Brandywine is the impact of inflation on the valuation of the stock. High inflation greatly reduces the present value of future cash flows and hence it exerts pressure on the price-to-FFO ratio of most REITs. This is certainly true for Brandywine, which is currently trading at a price-to-FFO ratio of only 6.1, a decade-low level. However, it is critical to maintain a long-term perspective. The Fed is doing its best to lead inflation base to its target rate of about 2%. Thanks to the aggressive stance of the Fed, inflation is likely to begin to subside next year. When that happens, the stock of Brandywine will enjoy a strong tailwind, as it will probably revert towards its normal valuation level. To provide a perspective, Brandywine has traded at an average price-to-FFO ratio of 10.9 over the last decade. If the FFO multiple of the stock reverts from 6.1 to 10.9 over the next three years, the stock will enjoy a 21% annualized valuation tailwind. Finally, the stock of Brandywine has declined for another reason, namely fears of the investing community that the aggressive interest rate hikes of the Fed may cause a recession. If these fears prove correct, Brandywine is likely to incur a decrease in its FFO per share. However, even if the economy falls into a recession, experience has shown that the economy has always recovered strongly from such a downturn. Investors should not stay away from stocks due to fears of a recession, as it has proved impossible to predict recessions. In fact, the market has already priced a recession in the stock of Brandywine to a great extent. Overall, the stock if Brandywine is under pressure due to strong headwinds but all these negative factors are likely to prove temporary. Whenever these headwinds attenuate, the stock of Brandywine is likely to enjoy a strong relief rally. Dividend Due to its steep decline this year, Brandywine is currently offering a 10-year high dividend yield of 9.3%. When a stock offers such a high yield, it usually signals that a dividend cut may be just around the corner. However, this is not the case for Brandywine. To be sure, the stock has a solid FFO payout ratio of 56%. In addition, analysts expect essentially flat FFO per share next year and 6% growth in 2024. If they prove correct, the payout ratio of Brandywine will improve even further by 2024.

Shareholder Returns

BDNUS REITsUS Market
7D-10.0%-6.4%-3.1%
1Y-51.0%-20.3%-21.5%

Return vs Industry: BDN underperformed the US REITs industry which returned -20.3% over the past year.

Return vs Market: BDN underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is BDN's price volatile compared to industry and market?
BDN volatility
BDN Average Weekly Movement5.0%
REITs Industry Average Movement4.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: BDN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BDN's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994326Jerry Sweeneyhttps://www.brandywinerealty.com

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Austin and Washington, D.C. markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 175 properties and 24.7 million square feet as of December 31, 2020 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.

Brandywine Realty Trust Fundamentals Summary

How do Brandywine Realty Trust's earnings and revenue compare to its market cap?
BDN fundamental statistics
Market CapUS$1.16b
Earnings (TTM)US$15.84m
Revenue (TTM)US$470.61m

73.1x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BDN income statement (TTM)
RevenueUS$470.61m
Cost of RevenueUS$191.78m
Gross ProfitUS$278.83m
Other ExpensesUS$262.99m
EarningsUS$15.84m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 20, 2022

Earnings per share (EPS)0.092
Gross Margin59.25%
Net Profit Margin3.37%
Debt/Equity Ratio123.7%

How did BDN perform over the long term?

See historical performance and comparison

Dividends

11.3%

Current Dividend Yield

54%

Payout Ratio

Does BDN pay a reliable dividends?

See BDN dividend history and benchmarks
When do you need to buy BDN by to receive an upcoming dividend?
Brandywine Realty Trust dividend dates
Ex Dividend DateOct 05 2022
Dividend Pay DateOct 20 2022
Days until Ex dividend4 days
Days until Dividend pay date19 days

Does BDN pay a reliable dividends?

See BDN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is BDN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BDN?

Other financial metrics that can be useful for relative valuation.

BDN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue6.8x
Enterprise Value/EBITDA15.2x
PEG Ratio5.8x

Price to Earnings Ratio vs Peers

How does BDN's PE Ratio compare to its peers?

BDN PE Ratio vs Peers
The above table shows the PE ratio for BDN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average29.5x
PDM Piedmont Office Realty Trust
27.4x-11.4%US$1.3b
DEA Easterly Government Properties
49.5x16.8%US$1.6b
JBGS JBG SMITH Properties
32.4xn/aUS$2.4b
SLG SL Green Realty
8.7x16.0%US$2.6b
BDN Brandywine Realty Trust
73.1x12.6%US$1.2b

Price-To-Earnings vs Peers: BDN is expensive based on its Price-To-Earnings Ratio (73.1x) compared to the peer average (29.5x).


Price to Earnings Ratio vs Industry

How does BDN's PE Ratio compare vs other companies in the US REITs Industry?

Price-To-Earnings vs Industry: BDN is expensive based on its Price-To-Earnings Ratio (73.1x) compared to the US REITs industry average (25.5x)


Price to Earnings Ratio vs Fair Ratio

What is BDN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BDN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio73.1x
Fair PE Ratio34x

Price-To-Earnings vs Fair Ratio: BDN is expensive based on its Price-To-Earnings Ratio (73.1x) compared to the estimated Fair Price-To-Earnings Ratio (34x).


Share Price vs Fair Value

What is the Fair Price of BDN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BDN ($6.75) is trading below our estimate of fair value ($24.16)

Significantly Below Fair Value: BDN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is Brandywine Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDN's forecast earnings growth (12.6% per year) is above the savings rate (1.9%).

Earnings vs Market: BDN's earnings (12.6% per year) are forecast to grow slower than the US market (14.7% per year).

High Growth Earnings: BDN's earnings are forecast to grow, but not significantly.

Revenue vs Market: BDN's revenue (5.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BDN's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BDN's Return on Equity is forecast to be low in 3 years time (0.5%).


Discover growth companies

Past Performance

How has Brandywine Realty Trust performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


6.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BDN has a large one-off gain of $10.3M impacting its June 30 2022 financial results.

Growing Profit Margin: BDN's current net profit margins (3.4%) are lower than last year (64.6%).


Past Earnings Growth Analysis

Earnings Trend: BDN's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: BDN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BDN had negative earnings growth (-94.7%) over the past year, making it difficult to compare to the REITs industry average (45.8%).


Return on Equity

High ROE: BDN's Return on Equity (1%) is considered low.


Discover strong past performing companies

Financial Health

How is Brandywine Realty Trust's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BDN's short term assets ($214.9M) do not cover its short term liabilities ($379.4M).

Long Term Liabilities: BDN's short term assets ($214.9M) do not cover its long term liabilities ($1.9B).


Debt to Equity History and Analysis

Debt Level: BDN's net debt to equity ratio (121.9%) is considered high.

Reducing Debt: BDN's debt to equity ratio has increased from 108.8% to 123.7% over the past 5 years.

Debt Coverage: BDN's debt is not well covered by operating cash flow (9.3%).

Interest Coverage: BDN's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


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Dividend

What is Brandywine Realty Trust current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


11.26%

Current Dividend Yield

Upcoming Dividend Payment

TodayOct 01 2022Ex Dividend DateOct 05 2022Dividend Pay DateOct 20 202215 days from Ex DividendBuy in the next 4 days to receive the upcoming dividend

Dividend Yield vs Market

Brandywine Realty Trust Dividend Yield vs Market
How does Brandywine Realty Trust dividend yield compare to the market?
SegmentDividend Yield
Company (Brandywine Realty Trust)11.3%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (REITs)4.1%
Analyst forecast in 3 Years (Brandywine Realty Trust)11.8%

Notable Dividend: BDN's dividend (11.26%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: BDN's dividend (11.26%) is in the top 25% of dividend payers in the US market (4.7%)


Stability and Growth of Payments

Stable Dividend: BDN's dividends per share have been stable in the past 10 years.

Growing Dividend: BDN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (53.9%), BDN's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (68.7%), BDN's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.5yrs

Average management tenure


CEO

Jerry Sweeney (65 yo)

28.5yrs

Tenure

US$6,089,044

Compensation

Mr. Gerard H. Sweeney, also known as Jerry, has been the Chief Executive Officer at Brandywine Realty Trust since August 8, 1994 and its President since 1994 and Trustee since February 9, 1994. He serves a...


CEO Compensation Analysis

Jerry Sweeney's Compensation vs Brandywine Realty Trust Earnings
How has Jerry Sweeney's remuneration changed compared to Brandywine Realty Trust's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$16m

Mar 31 2022n/an/a

US$11m

Dec 31 2021US$6mUS$750k

US$12m

Sep 30 2021n/an/a

US$26m

Jun 30 2021n/an/a

US$300m

Mar 31 2021n/an/a

US$304m

Dec 31 2020US$5mUS$750k

US$305m

Sep 30 2020n/an/a

US$303m

Jun 30 2020n/an/a

US$35m

Mar 31 2020n/an/a

US$37m

Dec 31 2019US$5mUS$750k

US$34m

Sep 30 2019n/an/a

US$138m

Jun 30 2019n/an/a

US$88m

Mar 31 2019n/an/a

US$94m

Dec 31 2018US$5mUS$742k

US$134m

Sep 30 2018n/an/a

US$86m

Jun 30 2018n/an/a

US$149m

Mar 31 2018n/an/a

US$140m

Dec 31 2017US$5mUS$700k

US$115m

Sep 30 2017n/an/a

US$28m

Jun 30 2017n/an/a

US$15m

Mar 31 2017n/an/a

US$8m

Dec 31 2016US$4mUS$700k

US$33m

Sep 30 2016n/an/a

-US$17m

Jun 30 2016n/an/a

-US$5m

Mar 31 2016n/an/a

-US$249k

Dec 31 2015US$4mUS$683k

-US$38m

Compensation vs Market: Jerry's total compensation ($USD6.09M) is above average for companies of similar size in the US market ($USD4.14M).

Compensation vs Earnings: Jerry's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BDN's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: BDN's board of directors are seasoned and experienced ( 11.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NYSE:BDN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
09 Nov 21SellUS$105,150Michael JoyceIndividual7,500US$14.02
04 Nov 21SellUS$68,863Thomas WirthIndividual5,000US$13.77

Ownership Breakdown

What is the ownership structure of BDN?
Owner TypeNumber of SharesOwnership Percentage
General Public272,2280.2%
Individual Insiders3,139,4771.8%
Institutions168,158,10298.0%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 82.24% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
19.05%
BlackRock, Inc.
32,677,856$220.6m1.26%0.01%
16.75%
The Vanguard Group, Inc.
28,745,799$194.0m1.91%no data
7.85%
State Street Global Advisors, Inc.
13,466,154$90.9m3.4%0.01%
4.11%
Macquarie Investment Management Business Trust
7,043,249$47.5m0.49%0.05%
3.74%
Security Capital Research & Management Incorporated
6,421,445$43.3m-7.87%1.53%
3%
LSV Asset Management
5,146,653$34.7m-2.66%0.07%
2.9%
Principal Global Investors, LLC
4,967,047$33.5m-22.16%0.02%
2.9%
American Century Investment Management Inc
4,967,044$33.5m-2.21%0.03%
1.99%
Geode Capital Management, LLC
3,405,653$23.0m-1.45%no data
1.91%
J.P. Morgan Asset Management, Inc.
3,274,016$22.1m20.05%no data
1.76%
Dimensional Fund Advisors LP
3,016,220$20.4m-0.79%0.01%
1.69%
Charles Schwab Investment Management, Inc.
2,907,891$19.6m3.68%0.01%
1.61%
Northern Trust Global Investments
2,766,077$18.7m-5%no data
1.4%
Balyasny Asset Management L.P.
2,401,299$16.2m-29.39%0.07%
1.38%
BNY Mellon Asset Management
2,369,795$16.0m-3.95%no data
1.28%
Wellington Management Group LLP
2,199,284$14.8m-29.81%no data
1.16%
Millennium Management LLC
1,992,114$13.4m438.49%0.02%
1.12%
Invesco Capital Management LLC
1,928,401$13.0m11.72%0.01%
1.09%
William Blair Investment Management, LLC
1,865,652$12.6m-3.57%0.02%
1.08%
Systematic Financial Management LP
1,859,676$12.6m4.84%0.41%
1.02%
Norges Bank Investment Management
1,752,993$11.8m0%no data
0.95%
Gerard Sweeney
1,622,754$11.0m28.47%no data
0.87%
Jacobs Levy Equity Management Inc
1,488,104$10.0m0%0.08%
0.85%
Legal & General Investment Management Limited
1,457,109$9.8m1.85%no data
0.79%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
1,359,129$9.2m-7%no data

Company Information

Brandywine Realty Trust's employee growth, exchange listings and data sources


Key Information

  • Name: Brandywine Realty Trust
  • Ticker: BDN
  • Exchange: NYSE
  • Founded: 1994
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$1.162b
  • Market Cap: US$1.158b
  • Shares outstanding: 172.09m
  • Website: https://www.brandywinerealty.com

Number of Employees


Location

  • Brandywine Realty Trust
  • 2929 Walnut Street
  • Suite 1700
  • Philadelphia
  • Pennsylvania
  • 19104
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BDNNYSE (New York Stock Exchange)YesCommon SharesUSUSDJul 1986
B2XDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1986

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.