Brandywine Cuts Dividend to Reduce Debt, Boost Liquidity

In a Bid for Flexibility

Philadelphia-based Brandywine Realty Trust is cutting its quarterly dividend by nearly 47%, from 15 cents to 8 cents per share, to improve liquidity and reduce debt, per Bisnow.

The move will allow the REIT to retain approximately $50M in cash, which it plans to use to prepay a $245M secured loan maturing in 2028.

The loan is backed by seven properties. Paying it off will give Brandywine full, unencumbered control of its core portfolio of about 120 assets.

Short-Term Pain, Long-Term Strategy

Prepaying the loan will trigger a one-time charge of $12M to $14M, not included in the company’s 2025 earnings guidance. CEO Jerry Sweeney said the dividend cut supports Brandywine’s long-term strategy and frees $45M in annual unencumbered cash flow.

“This revised dividend represents a level that we expect to maintain for the foreseeable future,” Sweeney said.

Portfolio Snapshot

As of Q2 2025, Brandywine owned 59 operating properties across office, retail, and multifamily, plus two completed developments and two under construction. The portfolio spans 22M SF with an occupancy rate of 88.5%, up from last year.

Despite higher occupancy, the REIT posted a net loss of $89M, compared to a $30M profit a year earlier. Losses included writedowns on property sales, such as a weak Austin office asset, and higher lease-up concessions at Solaris House, a 341-unit apartment development.

Market View

J.P. Morgan maintained a neutral rating on the stock in August, noting that Brandywine has performed better than some peers in terms of rent and occupancy. Still, analysts warned of challenges ahead, including refinancing joint ventures, managing large tenant move-outs, and setting a long-term dividend policy.

Looking Ahead

Brandywine continues to describe 2025 as a transitional year, focusing on repositioning and strengthening its core operations. With debt repayment and liquidity gains underway, the REIT is working to stabilize its financial position amid ongoing headwinds in the office and mixed-use real estate sectors.