Brandywine Realty Trust (NYSE: BDN)

Sector: Real Estate Industry: REIT - Office CIK: 0000790816
Market Cap 376.92 Mn
P/B 0.20
P/E -34.22
P/S 0.68
ROIC (Qtr) 0.49
Div Yield % 20.45
Rev 1y % (Qtr) -7.87
Total Debt (Qtr) 2.29 Bn
Debt/Equity (Qtr) 2.72
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About

Brandywine Realty Trust (BDN) operates in the real estate industry, specializing in the acquisition, development, redevelopment, ownership, management, and operation of a diverse portfolio of properties. These properties span across four key markets: Philadelphia Central Business District, Pennsylvania Suburbs, Austin, Texas, and Other. The company's revenue is primarily generated through leasing its properties to a wide array of tenants and the development and sale of new properties. Brandywine Realty Trust's business operations are categorized...

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Investment thesis

Bull case

  • Strong operating cash flow of 145.09M provides 3.25x coverage of SG&A expenses 44.69M, showing efficient operational cost management.
  • Strong free cash flow of 209.02M provides 4.68x coverage of SG&A expenses 44.69M, indicating efficient cost management.
  • Free cash flow of 209.02M provides solid 0.87x coverage of operating expenses 239.38M, showing operational efficiency.
  • Strong tangible asset base of 3.32B provides 862.30x coverage of intangibles 3.85M, indicating robust asset quality.
  • Free cash flow of 209.02M fully covers payables of 142.59M by 1.47x, indicating strong vendor payment capability.

Bear case

  • Operating cash flow of 145.09M barely covers its investment activities of (8.23M), with a coverage ratio of -17.64, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 145.09M provides thin coverage of dividend payments of (105.13M) with a -1.38 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 76.53M provide limited coverage of acquisition spending of (56.38M), which is -1.36x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 209.02M provides weak coverage of capital expenditures of (63.93M), with a -3.27 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (57.66M) show weak coverage of depreciation charges of 175.76M, with a -0.33 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the REIT - Office
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BXP BXP, Inc. 9.52 Bn 10.44 3.12 17.35 Bn
2 ARE Alexandria Real Estate Equities, Inc. 9.27 Bn -6.45 3.06 12.40 Bn
3 VNO Vornado Realty Trust 5.56 Bn 6.60 3.07 7.89 Bn
4 KRC Kilroy Realty Corp 3.77 Bn 13.65 3.39 4.59 Bn
5 CDP Copt Defense Properties 3.33 Bn 46.00 5.75 2.49 Bn
6 SLG Sl Green Realty Corp 2.75 Bn -24.56 2.74 5.97 Bn
7 HIW Highwoods Properties, Inc. 2.49 Bn 15.83 3.09 3.55 Bn
8 CUZ Cousins Properties Inc 2.44 Bn 24.76 4.97 3.34 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.84 0.66
EV to Cash from Ops. EV/CFO 12.83 35.35
EV to Debt EV to Debt 1.22 1.60
EV to EBIT EV/EBIT 22.35 -177.85
EV to EBITDA EV/EBITDA 8.19 15.22
EV to Free Cash Flow [EV/FCF] EV/FCF 31.05 -21.54
EV to Market Cap EV to Market Cap 7.43 14.69
EV to Revenue EV/Rev 5.02 6.06
Price to Book Value [P/B] P/B 0.20 0.76
Price to Earnings [P/E] P/E -34.22 3.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -1.76 -2.81
Dividend Payout Ratio % Div Payout % (Qtr) -55.60 86.83
Dividend per Basic Share Div per Share (Qtr) 0.53 1.13
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 44.06 -31.14
Interest Coverage Int. cover (Qtr) -0.45 -0.15
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 179.89 -13.82
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 79.25 8.92
Dividend Growth (1y) % Div 1y % (Qtr) -11.67 -13.06
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 70.98 -81.02
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 51.25 -59.28
EBIT Growth (1y) % EBIT 1y % (Qtr) 70.99 -85.68
EBT Growth (1y) % EBT 1y % (Qtr) 39.75 -24.55
EPS Growth (1y) % EPS 1y % (Qtr) 40.33 393.08
FCF Growth (1y) % FCF 1y % (Qtr) 89.93 148.67
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -8.36 -2.47
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.15 0.13
Cash Payout Ratio Cash Payout (Qtr) 1.32 0.24
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 2.72 1.46
Interest Cover Ratio Int Coverage (Qtr) -0.45 -0.15
Times Interest Earned Times Interest Earned (Qtr) -0.45 -0.15
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 24.30 29.81
EBIT Margin % EBIT Margin % (Qtr) -11.88 -4.47
EBT Margin % EBT Margin % (Qtr) -38.31 -25.12
Gross Margin % Gross Margin % (Qtr) 61.70 60.66
Net Profit Margin % Net Margin % (Qtr) -38.60 -26.43