Brandywine Realty Trust Earnings: Everything You Must Know Now

Brandywine Realty Trust (NYSE:BDN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Brandywine Realty Trust Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 17.95% to $0.32 in the quarter versus EPS of $0.39 in the year-earlier quarter.

Revenue: Rose 2.73% to $140.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brandywine Realty Trust reported adjusted EPS income of $0.32 per share. By that measure, the company missed the mean analyst estimate of $0.4. It missed the average revenue estimate of $147.43 million.

Quoting Management: “Our performance in the second quarter was quite strong,” stated Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty Trust. “Same store growth rates, lease rates, mark-to-market on rents, tenant retention, pipeline activity and overall positive absorption all exceeded or met key 2013 business plan metrics, and reinforce improving conditions in the general office segment and our portfolio in particular. The Tower Bridge asset exchange and the purchase of the Three Logan ground lease strengthen these core holdings and simplify our associated ownership structures. We had good sales activity on several smaller, non-core assets confirming the continued firming of the transaction market and bringing our year-to-date sales to $176.6 million or 80% of our 2013 target. Lastly, we took advantage of favorable market conditions in early April and raised $181.7 million of net proceeds through the offering of 12,650,000 common shares, thereby accelerating our deleveraging program, improving our credit metrics and creating greater liquidity and financial flexibility with $216.0 million of cash on hand at quarter end. As a result of the continued execution of our business plan, we are revising our 2013 FFO guidance to a range of $1.36 to $1.41 per diluted share or $1.37 to $1.42 for core FFO per diluted share for which we exclude transactional and capital market expenses.”

Key Stats (on next page)…

Revenue decreased 0.87% from $142.14 million in the previous quarter. EPS increased 3.23% from $0.31 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.33 and has not changed. For the current year, the average estimate has moved down from a profit of $1.41 to a profit of $1.4 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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