Rating Change #4

Brandywine Realty ( BDN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 197.1% when compared to the same quarter one year prior, rising from -$6.44 million to $6.25 million.
  • BDN's revenue growth trails the industry average of 18.0%. Since the same quarter one year prior, revenues slightly increased by 2.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • BRANDYWINE REALTY TRUST reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, BRANDYWINE REALTY TRUST reported poor results of -$0.29 versus -$0.03 in the prior year.
  • BDN has underperformed the S&P 500 Index, declining 23.08% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The gross profit margin for BRANDYWINE REALTY TRUST is rather low; currently it is at 19.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.30% significantly trails the industry average.

Brandywine Realty Trust is a publicly owned real estate investment firm. The firm engages in the engaged in the ownership, management, leasing, acquisition, and development of office and industrial properties. It primarily manages Class-A, suburban and urban office portfolio. Brandywine has a market cap of $1.21 billion and is part of the financial sector and real estate industry. Shares are down 27% year to date as of the close of trading on Tuesday.

You can view the full Brandywine Ratings Report or get investment ideas from our investment research center.

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