Brandywine Realty Trust

Company type and focus

• Self-administered and self-managed real estate investment trust (REIT).
• Engaged in acquisition, development, redevelopment, ownership, management, and operation of a diversified real estate portfolio.
• Portfolio includes office, life science/lab, residential, and mixed-use properties.

Geographic and segment structure (12 months ended Dec 31, 2025)

• Four reportable segments:
  • Philadelphia Central Business District (Philadelphia CBD)
  • Pennsylvania Suburbs (Chester, Delaware, and Montgomery counties)
  • Austin, Texas
  • Other (Washington, D.C.; Northern Virginia; Southern Maryland; Camden County, New Jersey; New Castle County, Delaware)
• Corporate group responsibilities:
  • Cash and investment management
  • Development and redevelopment during construction
  • General support functions
• Property portfolio management is described in Note 18 of the Consolidated Financial Statements.

Corporate structure

• Parent company organized in 1986 as a Maryland REIT.
• Operates through an Operating Partnership formed in 1996 as a Delaware limited partnership.
• The Parent Company is the sole general partner of the Operating Partnership.
• Ownership interests in the Operating Partnership include common units issued to holders in exchange for property contributions; structure operates as an UPREIT to facilitate tax deferral for contributors.
• Offices: Philadelphia; Radnor, PA; McLean, VA; Mount Laurel, NJ; Richmond, VA; Wilmington, DE; and Austin, TX.
• Principal executive offices: 2929 Arch Street, Suite 1800, Philadelphia, PA 19104; telephone (610) 325-5600.
• Website: www.brandywinerealty.com

Development, redevelopment, and operations

• Regular engagement with tenants and market participants to monitor workplace innovations.
• Uses development and redevelopment expertise to add assets and renovate existing properties.
• Capital is deployed for developments, redevelopments, acquisitions, and property improvements.
• Funding sources include dispositions, excess operating cash after dividends and financing needs, debt and equity from external sources, and joint venture partners.

Growth objective and strategic focus

• Objective: deploy capital to maximize return on investment and total return to shareholders.
• Strategic priorities:
  • Concentrate in urban town centers and central business districts with full-service capabilities (leasing, management, development, construction).
  • Maximize cash flow through leasing strategies and rent growth.
  • Achieve high tenant retention via comprehensive property management, maintenance, and amenities.
  • Diversify and strengthen the tenant base; pursue high-quality tenants.
  • Form joint ventures with strong partners.
  • Use redevelopment and development opportunities to create long-term value.
  • Opportunistically dispose of properties that do not meet long-term objectives.
  • Monetize or redeploy land for development or rezoning to align with market demand (life science/lab, residential, mixed-use).
  • Secure third-party development contracts to use existing capabilities.

Market and growth rationale

• Target markets selected for expected rent growth, market absorption, and economies of scale.
• Emphasis on development, redevelopment, and selective acquisitions in markets with healthy long-term fundamentals.
• Aim to manage a diversified asset base to meet tenant needs and create value.

Operational strategy

• Operate with concentration advantages in key markets to gain economies of scale.
• Use on-site construction superintendents under project managers and senior management to control development risk.
• Form capital through dispositions, operating cash flow, and debt/equity financing, including joint ventures.
• Redeploy capital and selectively dispose of assets to maintain earnings growth and liquidity.
• Maintain a conservative financial structure to support disciplined growth and portfolio diversification.

Competition and regulation

• Competes for tenants, acquisitions, and development with various real estate and financial players.
• Market conditions affect rents, occupancy, and asset values.
• Properties are subject to applicable laws, ordinances, and regulations; management asserts necessary permits and approvals are in place.

Environmental, risk, and governance

• Environmental matters are subject to federal, state, and local laws; uses Phase I/II assessments to manage potential liabilities and maintains insurance and title policies.
• Information security: acknowledges cyber risk; maintains governance, training, and periodic IT security reviews by the Audit Committee.
• Risk profile includes sensitivity to economic conditions, market conditions in Philadelphia and Austin, impairment risk, interest rates, and other macro factors.

Human capital

• As of December 31, 2025: approximately 268 full-time employees and 10 part-time employees.
• Emphasizes competitive compensation, health and safety, training, tuition reimbursement, and employee engagement.

ESG and sustainability

• 2025: received the eleventh GRESB Green Star ranking.
• 2025: Green Lease Leaders Platinum recognition renewed for three additional years.
• Active biodiversity and community initiatives: over 74 acres of green space, on-site beekeeping habitats, and micro farms.
• ESG information is presented in the Responsibility section of the company website.

Impairment charges

• 2025 aggregate impairment charges: $67.5 million total
  • $63.4 million related to Real Estate Investments
  • $4.1 million related to Investment in Unconsolidated Real Estate Ventures
• 2024 aggregate impairment charges: $53.1 million total
  • $44.7 million related to Real Estate Investments
  • $8.4 million related to Investment in Unconsolidated Real Estate Ventures