NYSE:BDN

Stock Analysis Report

Brandywine Realty Trust

Executive Summary

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.


Snowflake Analysis

6 star dividend payer and fair value.


Similar Companies

Share Price & News

How has Brandywine Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BDN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

BDN

-0.07%

US REITs

-1.1%

US Market


1 Year Return

-0.1%

BDN

16.0%

US REITs

17.9%

US Market

Return vs Industry: BDN underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: BDN underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

BDNIndustryMarket
7 Day-1.9%-0.07%-1.1%
30 Day-1.4%3.6%1.4%
90 Day3.6%7.8%6.9%
1 Year5.0%-0.1%20.7%16.0%20.3%17.9%
3 Year9.0%-5.0%37.9%20.6%47.8%38.3%
5 Year24.9%0.1%60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is Brandywine Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Brandywine Realty Trust undervalued compared to its fair value and its price relative to the market?

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BDN ($15.87) is trading below our estimate of fair value ($29.46)

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


Price To Earnings Ratio

PE vs Industry: BDN is poor value based on its PE Ratio (82.5x) compared to the REITs industry average (37.2x).

PE vs Market: BDN is poor value based on its PE Ratio (82.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: BDN is poor value based on its PEG Ratio (6.8x)


Price to Book Ratio

PB vs Industry: BDN is good value based on its PB Ratio (1.7x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Brandywine Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BDN's forecast earnings growth (12.2% per year) is above the savings rate (1.7%).

Earnings vs Market: BDN's earnings (12.2% per year) are forecast to grow slower than the US market (14.1% per year).

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

Revenue vs Market: BDN's revenue (3.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: BDN's revenue (3.4% 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 (1.7%).


Next Steps

Past Performance

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

50.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BDN has a large one-off gain of $14.0M impacting its December 31 2019 financial results.

Growing Profit Margin: BDN's current net profit margins (5.9%) are lower than last year (25.6%).


Past Earnings Growth Analysis

Earnings Trend: BDN has become profitable over the past 5 years, growing earnings by 50.2% per year.

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 (-75.1%) over the past year, making it difficult to compare to the REITs industry average (7.6%).


Return on Equity

High ROE: BDN's Return on Equity (2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Brandywine Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BDN has a high level of physical assets or inventory.

Debt Coverage by Assets: BDN's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: BDN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BDN has a sufficient allowance for bad loans.

Low Risk Liabilities: BDN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BDN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BDN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BDN has an appropriate level of bad loans.


Next Steps

Dividend

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

4.79%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: BDN's dividend (4.79%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: BDN's dividend (4.79%) is in the top 25% of dividend payers in the US market (3.73%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.4%), BDN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BDN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Jerry Sweeney (62yo)

25.5yrs

Tenure

US$4,551,452

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

Compensation vs Market: Jerry's total compensation ($USD4.55M) is about average for companies of similar size in the US market ($USD4.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gerard Sweeney
President25.5yrsUS$4.55m0.77% $21.7m
Thomas Wirth
Executive VP & CFO5.9yrsUS$1.72m0.11% $3.0m
George Johnstone
Executive Vice President of Operations5.9yrsUS$1.18m0.12% $3.3m
H. DeVuono
Executive VP & Senior MD of Pennsylvania Region11.6yrsUS$1.42m0.12% $3.4m
William Redd
Executive VP and Senior MD of Austin & Metro DC Regions12.1yrsUS$1.14m0.047% $1.3m
George Hasenecz
Senior Vice President of Investments10.1yrsno datano data
Daniel Palazzo
VP, Chief Accounting Officer & Treasurer5.1yrsno data0.033% $928.8k
Laura Krebs Miller
Vice President of Marketing0.9yrsno datano data
Anna Abbott
Vice President of Human Resources2.1yrsno datano data
George Sowa
Executive VP & Senior MD of New Jersey & Delaware Region13.4yrsUS$626.87kno data

8.0yrs

Average Tenure

57yo

Average Age

Experienced Management: BDN's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gerard Sweeney
President25.5yrsUS$4.55m0.77% $21.7m
Anthony Nichols
Chairman Emeritus15.9yrsUS$174.50k0.041% $1.2m
James Diggs
Independent Trustee8.9yrsUS$204.50k0.024% $675.9k
Charles Pizzi
Independent Trustee23.5yrsUS$198.50k0.032% $904.6k
Michael Joyce
Non-Executive Chairman of the Board & Lead Independent Trustee3yrsUS$263.00k0.044% $1.2m
Wyche Fowler
Independent Trustee15.4yrsUS$176.00k0.044% $1.2m
Terri Herubin
Independent Director1.8yrsUS$162.50k0.0070% $196.0k
H. Haverstick
Independent Trustee3.2yrsUS$206.50k0.014% $380.5k

12.2yrs

Average Tenure

69.5yo

Average Age

Experienced Board: BDN's board of directors are seasoned and experienced ( 12.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BDN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Brandywine Realty Trust's company bio, 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$2.816b
  • Market Cap: US$2.801b
  • Shares outstanding: 177.46m
  • 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

Biography

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 173 properties and 24.3 million square feet as of December 31, 2019, 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:43
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.