What happened
Known for its high-yield dividend, Brandywine Realty Trust(NYSE: BDN) attracted bullish investors on Wednesday for a different reason. It posted encouraging quarterly results, which sent its share price rocketing more than 9% higher on the day. That was more than good enough to top the S&P 500 index's essentially flat trajectory.
So what
Brandywine, a real estate investment trust (REIT) that focuses on top urban markets in the U.S., reported its second-quarter figures after market close on Tuesday.
For the period, Brandywine's total revenue was just under $126 million, up from the $124 million in the same quarter a year ago. The company's attributable generally accepted accounting principles (GAAP) net loss was $12.9 million, or $0.08 per share, against the Q2 2022 profit of $4.5 million.
This meant a mixed quarter for the REIT, as the collective analyst estimate for revenue was slightly over $124 million. However, those prognosticators were expecting a slightly narrower net loss of $0.07 per share.
The profitability picture looked somewhat better when taking funds from operations (FFO) into account. This metric is the most important indicator of profitability for REITs; happily, Brandywine was in the black during the quarter. That said, its FFO declined to $49.6 million ($0.29 per share) from the year-ago result of $60.5 million.
Now what
Brandywine made several tweaks to its full-year 2023 guidance in the earnings release. It now anticipates that FFO per share will come in at $1.14 to $1.18. Previously, it had forecast $1.12 to $1.20. The company also adjusted its net-loss guidance to $0.12 to $0.16 per share from the preceding $0.07 to $0.15.
It has not yet declared a fresh quarterly dividend. Its latest one, paid in early July, yields a relatively high 15%.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
