Brandywine Has Luck With Dispositions

RADNOR, PA-Brandywine Realty Trust is focused on selling off assets this year, with management placing a goal of $180 million of dispositions. “The market is challenging but surprisingly active,” said Gerard Sweeney, president and chief executive officer, during the REIT’s first-quarter earnings call.

During the first quarter, the owner of 37.5 million square feet of primarily office space sold $10.1 million of assets and has since closed an additional $26.5 million of deals. In all, $160 million of Brandywine’s $180-million goal has either closed or is in the negotiation process.

Things aren’t as pretty on the leasing end, Sweeney noted. “A higher percentage of deals are stalling at advanced states of negotiations as tenants continue to remain reluctant to make the capital decisions necessitated by signing new leases,” he said.

However, during the quarter Brandywine’s occupancy held up at 91.2%, compared with 93.3% during the same period last year. The REIT had 717,986 square feet of leasing activity, including 510,285 square feet of renewals, 118,223 square feet of new leases and 89,478 square feet devoted to tenant expansion.

Brandywine posted a net loss of $2.8 million during the period, compared with a profit of $10.8 million during the same year-ago period. Funds from operations dropped to $50.5 million, down from $60.5 million.