Brandywine Realty Trust (NYSE:BDN) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Brandywine Realty Trust shares jumped 6.9% after the REIT reported quarterly EPS of $0.14, beating the consensus estimate of a $0.17 loss, while revenue of $118.66 million also exceeded expectations.
• The company declared a quarterly dividend of $0.08 per share, equivalent to $0.32 annually and an unusually high 11.1% yield; however, its payout ratio remains negative amid losses.
• Despite the earnings beat and insider buying by CEO Gerard Sweeney, analyst sentiment remains cautious: the stock carries an average “Reduce” rating, with three Holds and three Sells and an average price target of $3.50.

Brandywine Realty Trust (NYSE:BDN - Get Free Report)'s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $2.70, but opened at $2.87. Brandywine Realty Trust shares last traded at $2.8850, with a volume of 590,850 shares traded.

The real estate investment trust reported $0.14 EPS for the quarter, topping the consensus estimate of ($0.17) by $0.31. The business had revenue of $118.66 million during the quarter, compared to the consensus estimate of $111.49 million. Brandywine Realty Trust had a negative return on equity of 18.52% and a negative net margin of 28.62%.

Brandywine Realty Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 22nd. Stockholders of record on Thursday, October 8th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a dividend yield of 11.1%. The ex-dividend date of this dividend is Thursday, October 8th. Brandywine Realty Trust's payout ratio is presently -39.02%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Weiss Ratings reissued a "sell (d-)" rating on shares of Brandywine Realty Trust in a report on Tuesday, October 13th. Wall Street Zen raised shares of Brandywine Realty Trust from a "sell" rating to a "hold" rating in a research note on Sunday, July 26th. Three research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $3.50.

Insider Buying and Selling

In other news, CEO Gerard Sweeney acquired 33,900 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was purchased at an average cost of $2.96 per share, for a total transaction of $100,344.00. Following the completion of the transaction, the chief executive officer directly owned 4,207,691 shares in the company, valued at $12,454,765.36. This trade represents a 0.81% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. 4.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Brandywine Realty Trust

Several institutional investors have recently modified their holdings of BDN. Congress Asset Management Co. lifted its holdings in Brandywine Realty Trust by 20.9% in the third quarter. Congress Asset Management Co. now owns 1,212,611 shares of the real estate investment trust's stock valued at $3,395,000 after buying an additional 209,943 shares during the period. Hsbc Holdings PLC boosted its stake in Brandywine Realty Trust by 68.1% in the first quarter. Hsbc Holdings PLC now owns 778,782 shares of the real estate investment trust's stock valued at $2,087,000 after acquiring an additional 315,512 shares during the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in Brandywine Realty Trust during the 1st quarter worth $1,861,000. Verus Financial Partners Inc. grew its holdings in Brandywine Realty Trust by 2.9% during the 1st quarter. Verus Financial Partners Inc. now owns 260,694 shares of the real estate investment trust's stock worth $738,000 after acquiring an additional 7,345 shares during the period. Finally, Public Employees Retirement System of Ohio bought a new stake in shares of Brandywine Realty Trust during the 2nd quarter valued at $648,000. Institutional investors and hedge funds own 87.27% of the company's stock.

Brandywine Realty Trust Stock Up 6.9%

The firm's 50-day simple moving average is $2.91 and its 200 day simple moving average is $3.00. The company has a market cap of $503.66 million, a P/E ratio of -3.52 and a beta of 1.32. The company has a debt-to-equity ratio of 3.76, a quick ratio of 1.67 and a current ratio of 1.67.

Brandywine Realty Trust Company Profile

Brandywine Realty Trust is a self-administered and self-managed real estate investment trust that owns, develops, leases and manages office, mixed-use and other commercial properties. The company focuses on well-located properties in urban, town-center and suburban settings, offering workspace, retail, residential and hospitality components within selected developments.

Brandywine's principal concentration is the Philadelphia region, including Philadelphia and surrounding communities in Pennsylvania and New Jersey.

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