BDN · BRANDYWINE RLTY Q2 FY2026 earnings call record财报电话会记录

“Our Austin quarter-end occupancy was negatively impacted by 3.7% due to 405 Colorado, which is 100% leased, being held for sale at the end of the quarter and subsequently closed.”

“The operating portfolio leasing pipeline is up 13%, or 220,000 square feet from the first quarter, and remains a solid level just shy of 2 million sq ft.”

“We intend to use our cash balances and sale proceeds to further reduce debt, including repurchasing bonds starting as early as this quarter, and to a much lesser extent, repurchasing shares.”

“Regarding our planned share buyback program, until we make significant progress on achieving all of our leverage targets and credit metrics, we anticipate using only about 5%-10% of our net proceeds to repurchase shares.”

“At 3151, in addition to the pipeline continuing to build, we have a multi-floor client in advanced lease negotiations, and our overall pipeline remains around 46% office and 54% life science.”

“Looking at capital markets, as we've already highlighted, we've exceeded our initial 2026 business plan target of $280 million-$300 million of sales.”

“As Jerry touched on, we have increased our sales target to $305 million with $208 million already closed and two properties expected to close during the third quarter.”

“With respect to our planned buyback activity on the unsecured notes, we will be focused on notes with higher coupons as that will have more of an immediate impact to improve our coverage ratios.”

“We also have $28 million of common dividends, $17 million of revenue maintained capital, $25 million of revenue creative capital, and $10 million of equity contributions to our joint ventures.”

“The sources are going to be $55 million of cash flow from after interest and asset sales totaling $290 million.”

“When we take a look at the share buyback, it's really deemed to be an adjunct to maintain earnings neutrality through the impact of our sales program.”

“Again, every dollar we go into debt is important, but we do think that it's not going to impact our leverage levels dramatically at all to have some level of buybacks that's in that single-digit area, especially when we're trying to buy back bonds that are north of 8.5% coupon, yield to maturity probably somewhere in the mid-sixes.”