Brandywine Realty Trust revealed plans during its latest earnings call to refinance one of its flagship Philadelphia mixed-use properties.
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With a $178M consolidated construction loan for 3025 John F. Kennedy Blvd. set to mature in July, the REIT is pursuing cheaper seven-year financing.
“We plan to complete a secured financing on the residential portion of that property totaling $100M and use the proceeds from that loan and the unsecured line of credit to unencumber the office portion of that property,” Chief Financial Officer Thomas Wirth said during the Thursday morning call.
This came after Brandywine revealed in October that it had spent $70.5M to acquire its joint venture partner’s stake in the project. It also assumed the construction loan at that time.
The 28-story tower overlooking 30th Street Station includes 326 apartments and 200K SF of office and life sciences space. It was completed in 2023 as part of Brandywine’s sprawling mixed-use Schuylkill Yards complex.
The REIT reported that its Philly central business district and University City portfolio was 94% occupied and 96% leased, with only 6% of those contracts set to roll over through 2028.
Its suburban portfolio is 90% leased, and Brandywine CEO Jerry Sweeney said he saw “solid levels of pipeline prospects for the existing vacancies.”
But the company as a whole appeared to struggle again last quarter.
The firm lost $48.9M in the first quarter, which came out to 28 cents per share. That was up from losses of $36.9M and 21 cents per share in Q4 and $27.4M and 16 cents per share in Q1 2025.
Brandywine’s funds from operations for the first three months of the year came out to $20M, or 11 cents per share. That was down year-over-year from $24.7M, or 14 cents per share.
Sweeney attributed this to issues with the REIT’s Austin portfolio, which was just 70% occupied last quarter.
“That continues to lag the rest of our portfolio and creates a 340-basis-point drop in overall company leasing levels,” he said. “Tour volume, however, increased 15% over prior quarters.”
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