Persistent negative AFFO, including a $19.8 million deficit in 2025Q4, indicates that recurring capital expenditures frequently outpace the company's ability to generate positive free cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 120.39M | 116.7M | 181.13M | 177.27M | 209.31M | 190.87M | 225.81M | 234.23M | 227.35M | 182.02M | 172.22M | 195.1M | 189M | 183.48M | 157.28M | 179.01M | 185.13M | 220.41M | 231.33M | 219.82M | 241.57M | 125.15M | 153.18M | 118.79M | 118.68M | 141.37M | 102.24M | 88.51M | 69.24M | 33.57M | 2.54M |
| Operating CF Growth % | -170.03% | -35.57% | 2.17% | -15.3% | 9.66% | -15.47% | -3.6% | 3.03% | 24.91% | 5.69% | -11.73% | 3.23% | 3.01% | 16.66% | -12.14% | -3.3% | -16.01% | -4.72% | 5.24% | -9% | 93.03% | -18.3% | 28.95% | 0.09% | -16.05% | 38.27% | 15.51% | 27.83% | 106.25% | 1223.82% | 410.26% |
| Operating CF / Revenue % | 24.57% | 24.09% | 35.83% | 34.45% | 41.36% | 39.21% | 42.22% | 40.36% | 41.77% | 34.97% | 32.78% | 32.37% | 31.66% | 32.64% | 29.36% | 33.24% | 34.26% | 38.33% | 39.82% | 35.29% | 36.45% | 31.97% | 47.34% | 38.86% | 40% | 45.48% | 35.61% | 31.25% | 35.9% | 54.98% | 25.28% |
| Net Income | -200.81M | 265.73M | -196.49M | -197.36M | 53.99M | 12.37M | 307.33M | 34.53M | 137.29M | 121.86M | 40.5M | -30.74M | 6.94M | 43.19M | 6.53M | -4.71M | -17.61M | 8.09M | 43.48M | 56.45M | 10.48M | 42.77M | 60.3M | 85.81M | 62.98M | 34.83M | 52.16M | 34.61M | 35.03M | 15M | -162K |
| Depreciation & Amortization | 86.45M | -651K | 178.17M | 188.8M | 177.98M | 178.1M | 188.28M | 210M | 174.26M | 179.36M | 189.68M | 219.03M | 208.57M | 198.73M | 198.58M | 219.11M | 193.26M | 160.04M | 198.9M | 244.01M | 264.05M | 116.97M | 86.92M | 66.56M | 63.74M | 84.58M | 73.17M | 72.45M | 48M | 15.59M | 2.84M |
| Stock-Based Compensation | 4.94M | 0 | 16.89M | 9.85M | 8.94M | 7.13M | 6.63M | 6.88M | 5.72M | 4.88M | 3.43M | 3.01M | 2.96M | 5.94M | 3.19M | 4.27M | 4.81M | 5.2M | 0 | 4.67M | 3.45M | 2.76M | 2.11M | 0 | 3.18M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -84.22M | -122.39M | 172.68M | 193.76M | -41.34M | 3.62M | -285.92M | -20.92M | -98.03M | -121.73M | -31.3M | 22.1M | -11.09M | -56.76M | -29.74M | -24.77M | -6.4M | 22.06M | -5.2M | -89.26M | -63.3M | -20.35M | -9.09M | -25.3M | -12.93M | -3.31M | -19.1M | 5.74M | 3.75M | 621K | 71K |
| Working Capital Changes | 6.21M | -25.99M | 9.86M | -17.85M | 9.68M | -10.39M | 9.72M | 3.73M | 7.69M | -1.73M | -4.96M | 1.66M | -6.53M | 4.24M | -9.43M | -2.85M | -16.33M | 1.25M | -5.84M | 8.62M | 30.33M | -14.24M | 15.05M | -8.28M | 4.89M | 25.27M | -3.99M | -24.29M | -17.54M | 2.36M | -209K |
| Cash from Investing | -171.65M | -206.28M | -120.19M | -174.91M | -190.59M | -100.31M | 18.29M | -130.66M | -214.51M | 79.8M | 500.91M | -166.45M | -270.79M | 104.71M | -73.04M | -47.93M | -171.94M | -102.55M | 164.46M | 44.47M | -915.79M | -252.42M | -682.95M | -34.07M | 5.04M | -123.68M | -32.37M | 70.17M | -898.34M | -418.26M | -35.37M |
| Acquisitions (Net) | -54.63M | 0 | -194.03M | -85.92M | -47.43M | -31.64M | -719K | 7.3M | 59.44M | 138.78M | -7.59M | -62.45M | -46.1M | -16.11M | -65.35M | 0 | 0 | -105.01M | 0 | -88.89M | -935.86M | -92.67M | -569.34M | -67.49M | -25.15M | -40.36M | -7.01M | 0 | 0 | 0 | 0 |
| Purchase of Investments | 0 | 0 | 0 | 0 | -227.11M | -109.93M | -179.75M | -138.69M | -522.58M | -180.75M | -257.02M | 0 | 0 | 0 | -105.25M | -5.28M | -5.18M | -14.98M | -32.32M | 0 | -363.11M | -846K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 108.06M | 58.02M | 279.6M | 54.87M | 384.63M | 318.02M | 812.35M | 0 | 0 | 0 | 105.25M | 0 | 0 | 31.39M | 0 | 0 | 181.56M | 423K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -98.56M | -206.28M | 203.6M | -32.17M | 238.9M | 118.36M | 79.41M | 144.16M | -61.34M | 103.2M | 762.99M | 222.14M | 12.24M | 241.93M | 91.43M | 129.18M | 64.87M | 219.37M | 372.4M | 580.04M | 908.13M | 110.66M | 587.97M | 152.32M | 120.16M | 109.79M | 107.29M | 179.76M | 894.89M | -5.91M | -1.48M |
| Cash from Financing | 82.1M | 55.71M | -32.3M | 46.79M | -28.63M | -109.34M | -288.19M | -35.61M | -193.07M | -253.56M | -535.91M | -229.46M | 76.08M | -26.53M | -83.11M | -147.24M | 1.81M | -120.21M | -397.46M | -284.07M | 692.43M | 119.1M | 536.56M | -102.97M | -110.38M | -20.27M | -59.52M | -166.07M | 812.73M | 395.85M | 50.27M |
| Dividends Paid | -66.85M | -93.02M | -104.48M | -124.25M | -130.72M | -130.25M | -131.15M | -134.14M | -129.92M | -116.31M | -116.64M | -114.33M | -104.73M | -97.37M | -96.03M | -89.56M | -87.34M | -70.61M | -169.34M | -162.37M | -151.1M | -106.61M | -90.46M | -78.75M | -75.02M | -72.53M | -69.01M | -63.14M | -51.44M | -18.07M | -510K |
| Common Dividends | -66.85M | -93.02M | -104.48M | -124.25M | -130.72M | -130.25M | -131.15M | -134.14M | -128.86M | -116.31M | 0 | -114.33M | -105.8M | -97.37M | -96.03M | -89.56M | -87.34M | -68.91M | -162.88M | -162.37M | -151.1M | -106.61M | -90.46M | -78.75M | -75.02M | -72.53M | -69.01M | -63.14M | -51.44M | -18.07M | -510K |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K |
| Share Repurchases | -760K | 0 | -1.03M | -5K | -4.01M | -2.33M | -60M | -17.28M | -28.88M | -100M | -879K | -67.32M | 0 | 0 | -118.21M | 0 | 0 | 0 | -59.43M | -59.43M | -94.47M | -239K | -95.44M | -182.84M | -20.16M | -6.49M | -15.34M | -22.2M | -1.66M | 0 | 0 |
| Other Financing | -2.48M | -7.9M | -6.64M | -5.11M | -13.27M | 253K | -2.05M | -468K | -2.64M | -355K | 899K | -7.15M | -2.63M | 1.3M | -9.69M | -6.82M | -620K | -6.74M | -4.33M | 3.3M | -124.33M | -3.84M | -18.66M | 81.14M | -1.07M | -12.05M | -1.66M | -7.03M | -4.92M | -2.27M | 382K |
| Net Change in Cash | 30.83M | -33.88M | 28.64M | 49.15M | -9.91M | -18.78M | -44.09M | 67.96M | -180.23M | 8.26M | 137.22M | -200.81M | -5.71M | 261.66M | 1.14M | -16.16M | 15M | -2.36M | -1.68M | -19.78M | 18.2M | -8.17M | 6.79M | -18.25M | 13.34M | -2.58M | 10.35M | -7.38M | -16.37M | 11.16M | 17.44M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 0 | 96.18M | 67.53M | 18.39M | 28.3M | 47.08M | 91.17M | 23.21M | 203.44M | 193.92M | 56.69M | 257.5M | 263.21M | 1.55M | 410K | 16.57M | 1.57M | 3.92M | 5.6M | 25.38M | 7.17M | 15.35M | 8.55M | 26.8M | 13.46M | 16.04M | 5.69M | 13.07M | 29.44M | 18.28M | 840K |
| Cash at End | 0 | 62.3M | 96.18M | 67.53M | 18.39M | 28.3M | 47.08M | 91.17M | 23.21M | 202.18M | 193.92M | 56.69M | 257.5M | 263.21M | 1.55M | 410K | 16.57M | 1.57M | 3.92M | 5.6M | 25.38M | 7.17M | 15.35M | 8.55M | 26.8M | 13.46M | 16.04M | 5.69M | 13.07M | 29.44M | 18.28M |
| Free Cash Flow | 53.13M | 42.7M | 51.37M | 20.81M | -53.71M | 55.75M | 65.56M | 35.93M | 14.75M | 19.84M | -82.27M | -131.05M | -47.93M | 62.37M | 58.17M | 7.18M | -46.5M | -12.92M | 55.71M | -226.86M | -464.94M | -144.83M | -548.39M | -103K | 28.71M | -51.74M | -30.41M | -21.08M | -1.72B | -378.78M | -31.35M |
| FCF Growth % | 87.23% | -16.88% | 146.79% | 138.75% | -196.33% | -14.95% | 82.43% | 143.62% | -25.64% | 124.11% | 37.22% | -173.41% | -176.85% | 7.22% | 709.62% | 115.45% | -260% | -123.18% | 124.56% | 51.21% | -221.03% | 73.59% | -532318.45% | -100.36% | 155.49% | -70.14% | -44.28% | 98.78% | -355.14% | -1108.23% | -15343.35% |
| FCF / Revenue % | 10.84% | 8.81% | 10.16% | 4.04% | -10.61% | 11.45% | 12.26% | 6.19% | 2.71% | 3.81% | -15.66% | -21.75% | -8.03% | 11.09% | 10.86% | 1.33% | -8.6% | -2.25% | 9.59% | -36.42% | -70.15% | -37% | -169.47% | -0.03% | 9.68% | -16.65% | -10.59% | -7.44% | -893.9% | -620.34% | -312.56% |
Liquidity and refinancing pressure
As reported in recent financial filings, Brandywine’s AFFO has remained consistently negative, with a deficit of $19.8 million in 2025Q4 alone, indicating that the company is currently unable to cover its dividend obligations through recurring operational cash flow after accounting for necessary tenant improvements and leasing commissions.
The recurring failure to generate positive AFFO suggests that the dividend is currently being funded by external capital or asset sales rather than organic property performance. Investors should monitor whether the recent dividend reduction is sufficient to stabilize the payout ratio, as the current trend implies a structural inability to sustain distributions without further balance sheet erosion.
Based on historical data, Brandywine’s recurring capital expenditures, including tenant improvements and leasing commissions, frequently exceed $20 million per quarter, which, according to SEC filings, significantly outpaces the company's ability to generate positive free cash flow during periods of elevated leasing activity and portfolio maintenance requirements.
The high level of capital intensity required to maintain occupancy in the Philadelphia CBD appears to be a primary driver of the company's cash burn. This ongoing requirement for significant reinvestment suggests that the portfolio may require substantial capital injections just to remain competitive, limiting the cash available for debt reduction or strategic growth initiatives.
As evidenced by the divergence between GAAP Net Income and FFO, Brandywine’s reported earnings are heavily distorted by non-cash depreciation charges, with the company recording a $37.0 million net loss in 2025Q4 while simultaneously struggling to achieve positive FFO, highlighting the disconnect between accounting profitability and actual cash generation.
The consistent gap between GAAP results and FFO suggests that the company's reported net income is an unreliable indicator of its true economic health. Analysts should focus on the persistent inability to convert operating cash flow into positive FFO, which appears to be the more accurate reflection of the company's current operational challenges.
According to reported quarterly figures, Brandywine’s FFO-to-Net Income conversion has been highly erratic, frequently turning negative, which suggests that the company’s operating cash flow is insufficient to support its capital-intensive business model and that earnings quality remains significantly compromised by ongoing operational and financing headwinds.
The volatility in FFO conversion indicates that the company's core operations are not generating the predictable cash flow typically expected of a REIT. This lack of conversion quality warrants further investigation into whether the company's reliance on non-recurring items or accounting adjustments is masking a deeper, more systemic issue with its property-level cash generation.
Quick answers to the most common questions about buying BDN stock.
Brandywine Realty Trust (BDN) generated $116.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Brandywine Realty Trust (BDN) generated $42.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Brandywine Realty Trust (BDN) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Brandywine Realty Trust (BDN) returned $93.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.