BRANDYWINE OPERATING PARTNERSHIP, L.P.
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 29, 2026
BDN$3.24+2.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-28.
0000790816-26-000029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0000790816-26-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 175 previous paragraphs and 185 current paragraphs.
107 unchanged; 47 reworded; 28 added; 16 removed; 5 previous and 3 current paragraphs rearranged.
Tables are not compared: 16 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (28)
Current report
•$6.1 million increase due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025;
Current report
•$3.1 million increase due to the opening of the hotel in Radnor, Pennsylvania in the second quarter of 2026; and
Current report
•Partially offset by $7.8 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026, and the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026.
Current report
•$3.1 million increase due to the opening of the hotel in Radnor, Pennsylvania in the second quarter of 2026; and
Current report
•Partially offset by $1.6 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026, and the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026.
Current report
During the third quarter of 2026, the Company recognized a $29.1 million impairment on the office building at 3151 Market Street, Philadelphia, PA, prior to its sale. The Company did not recognize any impairment during the third quarter of 2025.
Current report
Net gain on disposition of real estate
Current report
During the third quarter of 2026, the Company recognized $55.7 million of net gain on disposition of real estate from the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026. The Company did not recognize anynet gain on disposition of real estate during the third quarter of 2025.
Current report
Loss on early extinguishment of debt
Current report
The increase in the loss on early extinguishment of debt is primarily due to the retirement of the C-PACE loan and repurchases of the Company's 2028 Notes and its 8.875% Guaranteed Notes Due 2029. See Note 7, “Debt Obligations,” to our consolidated financial statements for further details.
Current report
Comparison of the Nine Months Ended September 30, 2026 and September 30, 2025
Current report
Comparison of the nine months ended September 30, 2026 to the nine months ended September 30, 2025
Current report
•$18.9 million increase due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025;
Current report
•$3.7 million increase related to 165 King of Prussia Road, Radnor, PA, which was put in service in the second quarter of 2026; and
Current report
•Partially offset by $12.6 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025, the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026, and the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026.
Current report
•$6.1 million increase due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025;
Current report
Duringthe nine months ended September 30, 2026, the Company recognized $41.0 million in aggregate impairments on Six Tower Bridge, Conshohocken, PA, 8260 Greensboro Drive and 1676 International Drive, McLean, VA, and 3151 Market Street, Philadelphia, PA.
Current report
During the nine months ended September 30, 2025, the Company recognized $63.4 million in aggregate impairments on Four Barton Skyway, Austin, TX, Quarry Lake II, Austin, TX, River Place - Building 2, Austin, TX, and River Place - Building 3, Austin, TX.
Current report
Net gain on disposition of real estate
Current report
Duringthe nine months ended September 30, 2026, the Company recognized $55.8 million of net gain on disposition of real estate primarily from the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026.
Current report
Duringthe nine months ended September 30, 2025, the Company recognized a gain of $3.1 million from installment proceeds received from the buyer of a property, located in Philadelphia, Pennsylvania, that the Company sold in March 2017.
Current report
The decrease in the loss is primarily due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025, partially offset by a combined net loss on the Company's investment in the One Uptown Multi-Family Venture of $5.3 million during the third quarter of 2026. See Note 4, “Investment in Unconsolidated Real Estate Ventures," to our consolidated financial statements for further details.
Current report
Loss on early extinguishment of debt
Current report
The increase in the loss on early extinguishment of debt is primarily due to the retirement of the C-PACE loan and repurchases of the Company's 2028 Notes and its 8.875% Guaranteed Notes Due 2029. See Note 7, “Debt Obligations,” to our consolidated financial statements for further details.
Current report
During the third quarter of 2026, the Company repurchased $50 million of its 2028 Notes and $70 million of its 8.875% Guaranteed Notes Due 2029 pursuant to tender offers. In addition, the Company repurchased $20 million aggregate principal amount of its 8.875% Guaranteed Notes Due 2029 through open-market purchases. In connection with these repurchases, the Company recognized a net loss on early extinguishment of debt of approximately $9.2 million.
Current report
Funds from Operations (“FFO”) and Core Funds from Operations ("Core FFO")
Current report
Core FFO is a computation made by analysts and investors to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations, including items such as (gains) losses from sales of non-depreciable land and debt extinguishment costs from the determination of FFO.
Current report
NAREIT definition differently. Our calculation of Core FFO may differ from the methodology used for calculating Core FFO by other REITs and, accordingly, our Core FFO may not be comparable to Core FFO reported by other REITs.
Removed paragraphs (16)
Previous report
•$6.4 million increase due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025;
Previous report
•Partially offset by $0.7 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025 and the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026.
Previous report
There were no impairments recognized in the second quarter of 2026.
Previous report
During second quarter of 2025, the Company recognized $63.4 million in aggregate impairments, comprised of (i) $34.1 million on two properties classified as held for use located in our Austin, Texas segment, (ii) $13.4 million on the sale of an office property located in our Austin, Texas segment and (iii) $15.9 million on one property classified as held-for-sale in our Austin, Texas segment.
Previous report
Equity in Loss of Real Estate Ventures
Previous report
Equity in loss of real estate ventures decreased primarily due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025.
Previous report
Comparison of the Six Months Ended June 30, 2026 and June 30, 2025
Previous report
Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025
Previous report
•$12.9 million increase due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025;
Previous report
•Partially offset by $5.1 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025 and the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026.
Previous report
•$4.1 million increase due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025;
Previous report
•Partially offset by $1.4 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025 and the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026.
Previous report
Depreciation and Amortization
Previous report
During the six months ended June 30, 2025, the Company recognized $63.4 million in aggregate impairments, comprised of (i) $34.1 million on two properties classified as held for use located in our Austin, Texas segment, (ii) $13.4 million on the sale of an office property located in our Austin, Texas segment and (iii) $15.9 million on one property classified as held-for-sale in our Austin, Texas segment.
Previous report
Duringthe six months ended June 30, 2026, we recognized a provision for impairment of $11.9 million on three properties, two of which are located in the Other segment and one of which is in the Pennsylvania Suburbs segment.
Previous report
Funds from Operations (“FFO”)
Reworded paragraphs (47)
Previous wording
The discussion that follows is based primarily on our consolidated financial statements as of June 30, 2026 and December 31, 2025 and for the three and six months ended June 30, 2026 and 2025 and should be read along with the consolidated financial statements and related notes appearing elsewhere in this report. The ability to compare one period to another may be significantly affected by acquisitions completed, development/redevelopment properties placed in service and dispositions made during those periods.
Current wording
The discussion that follows is based primarily on our consolidated financial statements as of September 30, 2026 and December 31, 2025 and for the three and nine months ended September 30, 2026 and 2025 and should be read along with the consolidated financial statements and related notes appearing elsewhere in this report. The ability to compare one period to another may be significantly affected by acquisitions completed, development/redevelopment properties placed in service and dispositions made during those periods.
Previous wording
During the six months ended June 30, 2026, we owned and managed properties within four segments: (1) Philadelphia CBD, (2) Pennsylvania Suburbs, (3) Austin, Texas, and (4) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties located in Northern Virginia, Washington, D.C., Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. In addition to the four segments, our corporate group is responsible for cash and investment management, development/redevelopment of certain real estate properties during the construction period, and certain other general support functions.
Current wording
During the nine months ended September 30, 2026, we owned and managed properties within four segments: (1) Philadelphia CBD, (2) Pennsylvania Suburbs, (3) Austin, Texas, and (4) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Other segment includes properties located in Northern Virginia, Washington, D.C., Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. In addition to the four segments, our corporate group is responsible for cash and investment management, development/redevelopment of certain real estate properties during the construction period, and certain other general support functions.
Previous wording
Notwithstanding the challenging macroeconomic conditions, which have contributed to recent difficulties in asset dispositions at acceptable prices, leasing of vacant space at attractive rents and sourcing of capital for development projects at acceptable costs, as well as to impairments of assets, we believe that our portfolio of Properties and investments, and liquidity profile, will allow us to maintain stable operating performance. In our ongoing assessment of our Properties, we consider both their quantitative and qualitative attributes, including in relation to other properties within a given submarket or adjacent submarkets that compete with our portfolio for tenants. The attributes that we consider in our assessment include the age and condition of the property, average asking rental rates, access to mass transit and highways, floorplate efficiencies, amenities within, and nearby, the property and availability of parking as well as market demographics that bear on demand for space at our properties.
Current wording
Notwithstanding the challenging macroeconomic conditions, which have contributed to recent difficulties in leasing of vacant space at attractive rents and sourcing of capital for development projects at acceptable costs, as well as to impairments of assets, we believe that our portfolio of Properties and investments, and liquidity profile, will allow us to maintain stable operating performance. In our ongoing assessment of our Properties, we consider both their quantitative and qualitative attributes, including in relation to other properties within a given submarket or adjacent submarkets that compete with our portfolio for tenants. The attributes that we consider in our assessment include the age and condition of the property, average asking rental rates, access to mass transit and highways, floorplate efficiencies, amenities within, and nearby, the property and availability of parking as well as market demographics that bear on demand for space at our properties. We also believe that our portfolio and liquidity profile will enable us to raise capital, as necessary, in various forms and from different sources, including through secured or unsecured loans from banks, pension funds and life insurance companies. However, there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all.
Previous wording
We continue to seek revenue growth throughout our portfolio by increasing occupancy and rental rates. Occupancy at our Core Properties at June 30, 2026 was 89.1% compared to 88.6% at June 30, 2025.
Current wording
We continue to seek revenue growth throughout our portfolio by increasing occupancy and rental rates. Occupancy at our Core Properties at September 30, 2026 was 89.0% compared to 88.8% at September 30, 2025.
Previous wording
The table below summarizes selected operating and leasing statistics of our Core Properties for the three and six months ended June 30, 2026 and 2025:
Current wording
The table below summarizes selected operating and leasing statistics of our Core Properties for the three and nine months ended September 30, 2026 and 2025:
Previous wording
(6)The increase in capital costs committed for the three and six months ended June 30, 2026 is primarily due to leases having higher average lease terms and a higher percentage of new leases compared to renewals.
Current wording
(6)The increase in capital costs committed for the three and nine months ended September 30, 2026 is primarily due to leases having higher average lease terms and a higher percentage of new leases compared to renewals.
Previous wording
The table below summarizes occupancy statistics of our Core Properties by segment for the six months ended June 30, 2026 and 2025:
Current wording
The table below summarizes occupancy statistics of our Core Properties by segment for the nine months ended September 30, 2026 and 2025:
Previous wording
The table below summarizes the occupancy statistics of our Properties, broken down by property types for the six months ended June 30, 2026 and 2025:
Current wording
The table below summarizes the occupancy statistics of our Properties, broken down by property types for the nine months ended September 30, 2026 and 2025:
Previous wording
We are subject to the risk that tenant leases, upon expiration, will not be renewed, that space may not be relet, or that the terms of renewal or reletting (including the cost of renovations) may be less favorable to us than the current lease terms. Leases that accounted for approximately 2.3% of our aggregate final annualized base rents as of June 30, 2026 (representing approximately 2.4% of the net rentable square feet of the properties) are scheduled to expire without penalty during the remainder of 2026. We maintain an active dialogue with our tenants in an effort to maximize lease renewals. If we are unable to renew leases or relet space under expiring leases, at anticipated rental rates, or if our tenants terminate their leases early, our cash flow would be adversely impacted.
Current wording
We are subject to the risk that tenant leases, upon expiration, will not be renewed, that space may not be relet, or that the terms of renewal or reletting (including the cost of renovations) may be less favorable to us than the current lease terms. Leases that accounted for approximately 1.2% of our aggregate final annualized base rents as of September 30, 2026 (representing approximately 1.2% of the net rentable square feet of the properties) are scheduled to expire without penalty during the remainder of 2026. We maintain an active dialogue with our tenants in an effort to maximize lease renewals. If we are unable to renew leases or relet space under expiring leases, at anticipated rental rates, or if our tenants terminate their leases early, our cash flow would be adversely impacted.
Previous wording
In addition to the property listed above, we have classified one office building in Wilmington, Delaware as redevelopment, but we have yet to incur material development costs on the project.
Current wording
As of September 30, 2026, we have classified one office building in Wilmington, Delaware as redevelopment, but we have yet to incur material development costs on the project.
Previous wording
(b) On May 1, 2026, the One Uptown Office Venture entered into the extension option for its loan with the existing lender. The maturity of the One Uptown Office loan was extended until July 29, 2028, and the total loan capacity was reduced from $121.7 million to $108.9 million.
Current wording
(b) On May 1, 2026, the One Uptown Office Venture entered into the extension option for its loan with the existing lenders. The maturity of the One Uptown Office loan was extended until July 29, 2028, and the total loan capacity was reduced from $121.7 million to $108.9 million.
Previous wording
The following discussion is based on our consolidated financial statements for the three and six months ended June 30, 2026 and 2025. We believe that presentation of our consolidated financial information, without a breakdown by segment, will effectively present important information useful to our investors.
Current wording
The following discussion is based on our consolidated financial statements for the three and nine months ended September 30, 2026 and 2025. We believe that presentation of our consolidated financial information, without a breakdown by segment, will effectively present important information useful to our investors.
Previous wording
(c)“Recently Completed/Acquired Properties,” which represents two properties (250 King of Prussia Road and 3025 JFK - office) placed into service or acquired on or subsequent to April 1, 2025;
Current wording
(c)“Recently Completed/Acquired Properties,” which represents three properties (250 King of Prussia Road, 3025 JFK - office, and 2100 Market Street) placed into service or acquired on or subsequent to July 1, 2025;
Previous wording
(d)“Development/Redevelopment Properties,” which represents two properties (300 Delaware Avenue and 3151 Market Street) currently in development/redevelopment. A property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment Properties in the period that we determine to proceed with development/redevelopment for a future development strategy; and
Current wording
(d)“Development/Redevelopment Properties,” which represents one property (300 Delaware Avenue) currently in development/redevelopment. A property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment Properties in the period that we determine to proceed with development/redevelopment for a future development strategy; and
Previous wording
(a)Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance. Other/(Eliminations) also includes properties sold and properties classified as held for sale, the parking operations of predevelopment projects, the hotel located in Radnor, Pennsylvania, the residential and retail components within University City in Philadelphia, Pennsylvania, the restaurant component of Cira Centre, the B.Labs incubator, remediation costs of insured events.
Current wording
(a)Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance. Other/(Eliminations) also includes properties sold and properties classified as held for sale, the parking operations of predevelopment projects, the hotel located in Radnor, Pennsylvania, the residential and retail components within University City in Philadelphia, Pennsylvania, the restaurant component of Cira Centre, the B.Labs incubator and normal intercompany eliminating entries.
Previous wording
•$0.9 million increase related to 155 King of Prussia Road, Radnor, PA and 250 King of Prussia Road, Radnor, PA, which were both Recently Completed/Acquired Properties in 2025, but stabilized in the first quarter of 2026 and the second quarter of 2026, respectively; and
Current wording
•$0.5 million increase related to 155 King of Prussia Road, Radnor, PA and 250 King of Prussia Road, Radnor, PA, which were both Recently Completed/Acquired Properties in 2025, but stabilized in the first quarter of 2026 and the second quarter of 2026, respectively;
Previous wording
•$4.5 million increase due to higher utilities cost and operating cost in the second quarter of 2026 compared to 2025;
Current wording
•$4.3 million increase due to higher utilities cost and operating cost in the third quarter of 2026 compared to 2025;
Previous wording
Interest expense increased by approximately $9.6 million for the quarter ended June 30, 2026 compared to 2025, as detailed below.
Current wording
Interest expense increased by approximately $6.1 million for the quarter ended September 30, 2026 compared to 2025, as detailed below.
Previous wording
The decrease in the loss is primarily due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025.
Current wording
The decrease in the loss is primarily due to the consolidation of 3025 JFK Venture in the fourth quarter of 2025, partially offset by a combined net loss on the Company's investment in the One Uptown Multi-Family Venture of $5.3 million during the third quarter of 2026. See Note 4, “Investment in Unconsolidated Real Estate Ventures," to our consolidated financial statements for further details.
Previous wording
The following comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025 makes reference to the effect of the following:
Current wording
The following comparison of the nine months ended September 30, 2026 to the nine months ended September 30, 2025 makes reference to the effect of the following:
Previous wording
(a)“Same Store Property Portfolio,” which represents 55 properties containing an aggregate of approximately 10.4 million net rentable square feet, and represents properties that we owned and consolidated for the six-month periods ended June 30, 2026 and 2025. The Same Store Property Portfolio includes properties acquired or placed in service on or prior to January 1, 2025 and owned and consolidated through June 30, 2026 excluding properties classified as held for sale;
Current wording
(a)“Same Store Property Portfolio,” which represents 55 properties containing an aggregate of approximately 10.4 million net rentable square feet, and represents properties that we owned and consolidated for the nine-month periods ended September 30, 2026 and 2025. The Same Store Property Portfolio includes properties acquired or placed in service on or prior to January 1, 2025 and owned and consolidated through September 30, 2026 excluding properties classified as held for sale;
Previous wording
(b)“Total Portfolio,” which represents all properties owned and consolidated by us during the six months ended June 30, 2026 and 2025;
Current wording
(b)“Total Portfolio,” which represents all properties owned and consolidated by us during the nine months ended September 30, 2026 and 2025;
Previous wording
(c)"Recently Completed/Acquired Properties," which represents two properties (250 King of Prussia and 3025 JFK - office) placed into service or acquired on or subsequent to January 1, 2025;
Current wording
(c)"Recently Completed/Acquired Properties," which represents three properties (250 King of Prussia Road, 3025 JFK - office, and 2100 Market Street) placed into service or acquired on or subsequent to January 1, 2025;
Previous wording
(d)"Development/Redevelopment Properties," which represents two properties (300 Delaware Avenue and 3151 Market Street) currently in development/redevelopment. A property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment Properties in the period that we determine to proceed with development/redevelopment for a future development strategy; and
Current wording
(d)"Development/Redevelopment Properties," which represents one property (300 Delaware Avenue) currently in development/redevelopment. A property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment Properties in the period that we determine to proceed with development/redevelopment for a future development strategy; and
Previous wording
(a)Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance. Other/(Eliminations) also includes properties sold and properties classified as held for sale, the parking operations of predevelopment projects, the hotel located in Radnor, Pennsylvania, the residential and retail components within University City in Philadelphia, Pennsylvania, the restaurant component of Cira Centre, the B. Labs incubator, remediation costs of insured events.
Current wording
(a)Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance. Other/(Eliminations) also includes properties sold and properties classified as held for sale, the parking operations of predevelopment projects, the hotel located in Radnor, Pennsylvania, the residential and retail components within University City in Philadelphia, Pennsylvania, the restaurant component of Cira Centre, the B. Labs incubator, and normal intercompany eliminating entries.
Previous wording
•$1.9 million increase related to 155 King of Prussia Road, Radnor, PA and 250 King of Prussia Road, Radnor, PA, which were both Recently Completed/Acquired Properties in 2025, but stabilized in the first quarter of 2026 and the second quarter of 2026, respectively; and
Current wording
•$2.4 million increase related to 155 King of Prussia Road, Radnor, PA and 250 King of Prussia Road, Radnor, PA, which were both Recently Completed/Acquired Properties in 2025, but stabilized in the first quarter of 2026 and the second quarter of 2026, respectively;
Previous wording
•$7.6 million increase due to higher utilities cost and operating cost during the six months ended June 30, 2026 compared to 2025;
Current wording
•$11.8 million increase due to higher utilities cost and operating cost during the nine months ended September 30, 2026 compared to 2025;
Previous wording
•$1.8 million increase due to the opening of the hotel in Radnor, Pennsylvania in the second quarter of 2026 and the opening of a food hall in the fourth quarter of 2025; and
Current wording
•$5.2 million increase due to the opening of the hotel in Radnor, Pennsylvania in the second quarter of 2026 and the opening of a food hall in the fourth quarter of 2025; and
Previous wording
•Partially offset by $2.6 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025 and the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026.
Current wording
•Partially offset by $2.6 million decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025, the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026, and the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026.
Previous wording
Depreciation and Amortization expense increased primarily due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025, partially offset by a decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025 and the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026.
Current wording
Depreciation and Amortization expense increased primarily due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025 partially offset by a decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025, the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026, and the sales of 500 North Gulph Road, King of Prussia, PA, 405 Colorado, Austin, TX, and 8260 Greensboro Drive and 1676 International Drive, McLean, VA in the third quarter of 2026.
Previous wording
General & administrative expenses decreased due to lower stock compensation expenses recognized in the first quarter of 2026 compared to 2025.
Current wording
General & administrative expenses decreased primarily due to lower stock compensation expenses recognized in the first quarter of 2026 compared to 2025.
Previous wording
Interest expense increased by approximately $18.6 million for the six months ended June 30, 2026 compared to 2025, as detailed below.
Current wording
Interest expense increased by approximately $24.8 million for the nine months ended September 30, 2026 compared to 2025, as detailed below.
Previous wording
On September 26, 2025, the Company and the Operating Partnership amended its Unsecured Credit Facility to, among other things, amend the restricted payments covenant to permit the Operating Partnership to pay dividends and make distributions attributable to any period of four consecutive fiscal quarters that ends (i) on any date that occurs after June 30, 2025 and on or prior to March 31, 2026, in an amount not to exceed, in the aggregate, the greater of (a) 100% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status and (ii) on April 1, 2026 or any date that occurs thereafter, in amount not to exceed, in the aggregate, the greater of (a) 95% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status.
Current wording
On September 26, 2025, the Company and the Operating Partnership amended their Unsecured Credit Facility to, among other things, amend the restricted payments covenant to permit the Operating Partnership to pay dividends and make distributions attributable to any period of four consecutive fiscal quarters that ends (i) on any date that occurs after June 30, 2025 and on or prior to March 31, 2026, in an amount not to exceed, in the aggregate, the greater of (a) 100% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status and (ii) on April 1, 2026 or any date that occurs thereafter, in an amount not to exceed, in the aggregate, the greater of (a) 95% of FFO attributable to such period or (b) the minimum amount necessary for the Company to maintain its REIT status.
Previous wording
(a)In December 2025, we closed on a $50.5 million Commercial Property Assessed Clean Energy (“C-PACE”) financing for the development project at 3151 Market Street, which includes $30.0 million in future funding for new leasing.
Current wording
On September 29, 2026, we retired the $57.3 million Commercial Property Assessed Clean Energy ("C-PACE") financing for the development project at 3151 Market Street, prior to the disposition of the encumbered wholly-owned office property. In connection with the retirement, the Company recognized a net loss on early extinguishment of debt of approximately $6.3 million.
Previous wording
The Parent Company unconditionally guarantees the Operating Partnership’s unsecured debt obligations, which, as of June 30, 2026, amounted to $2,477.6 million. The Operating Partnership’s secured debt obligations as of June 30, 2026, amounted to $147.3 million.
Current wording
The Parent Company unconditionally guarantees the Operating Partnership’s unsecured debt obligations, which, as of September 30, 2026, amounted to $2,325.6 million. The Operating Partnership’s secured debt obligations as of September 30, 2026, amounted to $89.8 million.
Previous wording
As of June 30, 2026, we had $37.9 million of cash and cash equivalents and $425.5 million of available borrowings under our Unsecured Credit Facility, net of $25.5 million in letters of credit outstanding. Based on the foregoing, as well as cash flows from operations net of dividend requirements, we believe we have sufficient capital to fund our remaining capital requirements on existing development and redevelopment projects and pursue additional attractive investment opportunities. We expect that our primary uses of capital during the remainder of 2026 will be to fund our current development and redevelopment projects.
Current wording
As of September 30, 2026, we had $312.7 million of cash and cash equivalents and $437.9 million of available borrowings under our Unsecured Credit Facility, net of $25.1 million in letters of credit outstanding. Based on the foregoing, as well as cash flows from operations net of dividend requirements, we believe we have sufficient capital to fund our remaining capital requirements on existing development and redevelopment projects and pursue additional attractive investment opportunities.
Previous wording
As of June 30, 2026 and December 31, 2025, we maintained cash and cash equivalents and restricted cash of $38.7 million and $62.3 million, respectively. We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following table summarizes changes in our cash flows (in thousands):
Current wording
As of September 30, 2026 and December 31, 2025, we maintained cash and cash equivalents and restricted cash of $313.7 million and $62.3 million, respectively. We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following table summarizes changes in our cash flows (in thousands):
Previous wording
Cash is used in investing activities to fund acquisitions, development, or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that we expect will enable us to take advantage of our development/redevelopment, leasing, financing, and property management skills and invest in existing buildings that meet our investment criteria for additional capital. During the six months ended June 30, 2026, when compared to the six months ended June 30, 2025, the change in investing cash flows was due to the following activities (in thousands):
Current wording
Cash is used in investing activities to fund acquisitions, development, or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that we expect will enable us to take advantage of our development/redevelopment, leasing, financing, and property management skills and invest in existing buildings that meet our investment criteria for additional capital. During the nine months ended September 30, 2026, when compared to the nine months ended September 30, 2025, the change in investing cash flows was due to the following activities (in thousands):
Previous wording
We generally fund our investment activity through the sale of real estate, property-level financing, unsecured and secured credit facilities, senior unsecured notes, and construction loans. From time to time, we may issue common or preferred shares of beneficial interest, or the Operating Partnership may issue common or preferred units of limited partnership interest. During the six months ended June 30, 2026, when compared to the six months ended June 30, 2025, the change in financing cash flows was due to the following activities (in thousands):
Current wording
We generally fund our investment activity through the sale of real estate, property-level financing, unsecured and secured credit facilities, senior unsecured notes, and construction loans. From time to time, we may issue common or preferred shares of beneficial interest, or the Operating Partnership may issue common or preferred units of limited partnership interest. During the nine months ended September 30, 2026, when compared to the nine months ended September 30, 2025, the change in financing cash flows was due to the following activities (in thousands):
Previous wording
In order to maintain its qualification as a REIT, the Parent Company is required to, among other things, pay dividends to its shareholders of at least 90% of its REIT taxable income. See Note 11, “Beneficiaries' Equity of the Parent Company,” to our consolidated financial statements for further information related to our dividends declared for the second quarter of 2026.
Current wording
In order to maintain its qualification as a REIT, the Parent Company is required to, among other things, pay dividends to its shareholders of at least 90% of its REIT taxable income. See Note 11, “Beneficiaries' Equity of the Parent Company,” to our consolidated financial statements for further information related to our dividends declared for the third quarter of 2026.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Equity in Loss of Unconsolidated Real Estate Ventures
Current report — wording carried from elsewhere
We expect that our primary uses of capital during the remainder of 2026 will be to fund our current development and redevelopment projects.
Current report — wording carried from elsewhere
Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate FFO by adjusting net income (loss) attributable to common unit holders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable consolidated real estate, impairment losses on investments in unconsolidated real estate ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated real estate ventures, real estate related depreciation and amortization, and after similar adjustments for unconsolidated real estate ventures. Our calculation of FFO includes gains from sale of undepreciated real estate and other assets, considered incidental to our main business, to third parties or unconsolidated real estate ventures.
Rearranged previous paragraphs (5)
Previous report — wording carried elsewhere
We also believe that our portfolio and liquidity profile will enable us to raise capital, as necessary, in various forms and from different sources, including through secured or unsecured loans from banks, pension funds and life insurance companies. However, there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all.
Previous report — wording carried elsewhere
As of June 30, 2026, the following projects are in development (dollars in thousands):
Previous report — wording carried elsewhere
•$2.3 million increase due to the opening of the hotel in Radnor, Pennsylvania in the second quarter of 2026 and the opening of a food hall in the fourth quarter of 2025; and
Previous report — wording carried elsewhere
Depreciation and Amortization expense increased primarily due to the consolidation of 3025 JFK Venture and 3151 Market Street Venture in the fourth quarter of 2025 partially offset by a decrease due to the sale of Four Barton Skyway, Austin, TX in the second quarter of 2025, the sale of Quarry Lake II, Austin, TX in the third quarter of 2025 and the sale of Six Tower Bridge, Conshohocken, PA in the second quarter of 2026.
Previous report — wording carried elsewhere
On June 23, 2026, the Company retired the $178 million construction loan that was scheduled to mature in July 2026. On June 24, 2026, the Company closed on a $90 million secured term loan at Avira, the residential component of 3025 JFK, located in Philadelphia, Pennsylvania. The loan has a stated interest rate of SOFR + 1.85% and an initial maturity date of June 2033. Effective June 24, 2026, the loan was swapped to a fixed rate at 5.81% through the maturity date.