The firm updated their model based on second quarter 2015 results, which included a 32 cent FFO, below Barclays' estimate of 34 cents and down 10.4% year over year.
Brandywine's management reiterated a full year 2015 FFO guidance range of $1.40-$1.46, which would be a 6.6% year over year increase, according to Barclays.
The firm lowered their 2015 FFO estimate to $1.42 from $1.43. The consensus is at $1.42.
"Guidance effectively reflects stronger than expected operating results offset by a higher level of anticipated dispositions," Barclays said in a note.
Shares of Brandywine closed at $12.02 on Thursday.
Separately, TheStreet Ratings team rates BRANDYWINE REALTY TRUST as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BRANDYWINE REALTY TRUST (BDN) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 39.4% when compared to the same quarter one year prior, rising from $2.19 million to $3.06 million.
- BRANDYWINE REALTY TRUST has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BRANDYWINE REALTY TRUST swung to a loss, reporting -$0.01 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($0.18 versus -$0.01).
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, BRANDYWINE REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for BRANDYWINE REALTY TRUST is rather low; currently it is at 20.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.10% significantly trails the industry average.
- You can view the full analysis from the report here: BDN Ratings Report