Q1 2026 Brandywine Realty Trust Earnings Call

April 23, 2026

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Brandywine Realty Trust Q1 2026 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you would need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to turn the conference over to Jerry Sweeney, President and CEO. Please go ahead.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. And to ask a question during this session, you would need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to turn the conference over to Jerry Sweeney, President and CEO. Please go ahead.

Gerard H. Sweeney: Michelle, thank you very much. Good morning, everyone. Thank you for participating in our Q1 2026 earnings call. On today's call with me are Dan Palazzo, our Senior Vice President, Chief Accounting Officer, and Tom Wirth, our Executive Vice President and Chief Financial Officer. Prior to beginning, certain information discussed on the call today may constitute forward-looking statements within the meaning of the federal securities law. Although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved. For further information on factors that could impact our anticipated results, please reference our press release as well as our most recent annual and quarterly reports that we file with the SEC. During our prepared comments today, Tom and I will briefly review Q1 results and frame out the key assumptions driving our 2026 guidance.

Jerry Sweeney: Michelle, thank you very much. Good morning, everyone. Thank you for participating in our Q1 2026 earnings call. On today's call with me are Dan Palazzo, our Senior Vice President, Chief Accounting Officer, and Tom Wirth, our Executive Vice President and Chief Financial Officer. Prior to beginning, certain information discussed on the call today may constitute forward-looking statements within the meaning of the federal securities law. Although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved. For further information on factors that could impact our anticipated results, please reference our press release as well as our most recent annual and quarterly reports that we file with the SEC. During our prepared comments today, Tom and I will briefly review Q1 results and frame out the key assumptions driving our 2026 guidance.

Speaker #2: Michelle, thank you very much. Good morning, everyone. Thank you for participating in our first quarter 26 earnings call. On today's call with me are Dan Palazzo, our Senior Vice President and Chief Accounting Officer; and Tom Werth, our Executive Vice President and Chief Financial Officer.

Speaker #2: Prior to beginning, certain information discussed on the call today may constitute forward-looking statements. Within the meaning of the Federal Securities Law, although we believe the estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved.

Speaker #2: For further information on factors that could impact our anticipated results, please reference our press release as well as our most recent annual and quarterly reports that we file with the SEC.

Speaker #2: During our prepared comments today, Tom and I will briefly review first quarter results, and frame out the key assumptions driving our 26 guidance. After that, Dan, Tom, and I are available for any questions.

Gerard H. Sweeney: After that, Dan, Tom, and I are available for any questions. To move into our presentation, from an operating portfolio management and liquidity standpoint, Q1 produced results very much in line with our business plan. As such is noted in our supplemental package, all of our full year operating and financial metrics remain unchanged from our original 2026 business plan. While Q1 was relatively quiet from a transaction announcement standpoint, it was very busy from an activity perspective. Quarterly highlights include we've achieved 94% of our speculative revenue target at the midpoint of our guidance. Our Q1 FFO was $0.11 a share, which was in line with consensus and management guidance. We have narrowed our full year FFO guidance while maintaining our $0.55 full year midpoint.

Jerry Sweeney: After that, Dan, Tom, and I are available for any questions. To move into our presentation, from an operating portfolio management and liquidity standpoint, Q1 produced results very much in line with our business plan. As such is noted in our supplemental package, all of our full year operating and financial metrics remain unchanged from our original 2026 business plan. While Q1 was relatively quiet from a transaction announcement standpoint, it was very busy from an activity perspective. Quarterly highlights include we've achieved 94% of our speculative revenue target at the midpoint of our guidance. Our Q1 FFO was $0.11 a share, which was in line with consensus and management guidance. We have narrowed our full year FFO guidance while maintaining our $0.55 full year midpoint.

Speaker #2: So, to move into our presentation, from an operating, portfolio management, and liquidity standpoint, the first quarter produced results very much in line with our business plan.

Speaker #2: As such, as noted in our supplemental package, all of our full-year operating and financial metrics remain unchanged from our original 26 business plans. And while the first quarter was relatively quiet from a transaction announcement standpoint, it was very busy from an activity perspective.

Speaker #2: Quarterly highlights include: We've achieved 94% of our speculative revenue target at the midpoint of our guidance. Our first quarter FFO was $0.11 a share, which was in line with consensus and management guidance.

Speaker #2: We have narrowed the full-year FFO guidance while maintaining our 55-cent full-year midpoint. Our portfolio recycling and debt reduction program is progressing very much on schedule, with approximately 305 million dollars of potential sales under agreement and in various stages of due diligence, with pricing right in line with our guidance.

Gerard H. Sweeney: Our portfolio recycling and debt reduction program is progressing very much on schedule with approximately $305 million of potential sales under agreement and in various stages of due diligence with pricing right in line with our guidance. We expect, and we'll talk later, but we do expect the majority of these transactions to close in Q2. Looking more closely at Q1 operations, solid operating metrics reinforced our strong market positioning and tenants continued to like the quality of properties. Our wholly owned core portfolio is 88.3% occupied and 89.9% leased. Our year-end occupancy and leasing percentages will improve throughout the year as we anticipate having positive net absorption for actually the first time in several years as further evidence of our improving markets. Forward leasing commencing after year-end totals 182,000 sq ft, with most taking occupancy in the next couple quarters.

Jerry Sweeney: Our portfolio recycling and debt reduction program is progressing very much on schedule with approximately $305 million of potential sales under agreement and in various stages of due diligence with pricing right in line with our guidance. We expect, and we'll talk later, but we do expect the majority of these transactions to close in Q2. Looking more closely at Q1 operations, solid operating metrics reinforced our strong market positioning and tenants continued to like the quality of properties. Our wholly owned core portfolio is 88.3% occupied and 89.9% leased. Our year-end occupancy and leasing percentages will improve throughout the year as we anticipate having positive net absorption for actually the first time in several years as further evidence of our improving markets. Forward leasing commencing after year-end totals 182,000 sq ft, with most taking occupancy in the next couple quarters.

Speaker #2: We expect, and we'll talk later, but we do expect the majority of these transactions to close in the second quarter. Looking more closely at first quarter operations, solid operating metrics reinforced our strong market positioning and tenants' continued flight to quality perspective.

Speaker #2: Our wholly owned core portfolio is 88.3% occupied, and 89.9% leased. Our year-end and occupancy and leasing percentages will improve throughout the year, as we anticipate having positive net absorption for actually the first time in several years, as further evidence of our improving markets.

Speaker #2: Forward leasing commencing after year-end total 182,000 square feet, with most taking occupancy in the next couple of quarters. We have achieved, as I noted, 94% of our spec revenue target, which is 16.4 million dollars.

Gerard H. Sweeney: We have achieved, as I noted, 94% of our spec revenue target, which is $16.4 million, which is running ahead of last year. Leasing activity for the quarter totaled 422,000 square feet, including 268,000 square feet in our wholly owned portfolio and 153,000 square feet in our joint venture portfolio. The wholly owned leasing activity is our highest level since Q4 2024. Tenant retention was around 45%, very much as expected, since we know there'll be a number of known move-outs throughout the course of the year. Cap rate is below our target at 6.4%, really driven by a low as-is no cap deal within one of our portfolios, but our cap for the year will remain within our guidance range. Our GAAP to market was 4.1%.

Jerry Sweeney: We have achieved, as I noted, 94% of our spec revenue target, which is $16.4 million, which is running ahead of last year. Leasing activity for the quarter totaled 422,000 square feet, including 268,000 square feet in our wholly owned portfolio and 153,000 square feet in our joint venture portfolio. The wholly owned leasing activity is our highest level since Q4 2024. Tenant retention was around 45%, very much as expected, since we know there'll be a number of known move-outs throughout the course of the year. Cap rate is below our target at 6.4%, really driven by a low as-is no cap deal within one of our portfolios, but our cap for the year will remain within our guidance range. Our GAAP to market was 4.1%.

Speaker #2: Which is running ahead of last year. Leasing activity for the quarter totaled 422,000 square feet, including 268,000 square feet in our wholly owned portfolio, and 153,000 square feet in our joint venture portfolio.

Speaker #2: The wholly owned leasing activity is our highest level since the fourth quarter of '24. Tenant retention was around 45%, very much as expected. Since we know there'll be a number of known move-outs throughout the course of the year, capital ratio is below our target at 6.4%.

Speaker #2: Really driven by a low as is no capital deal within one of our portfolios, but will remain our capital for the year will remain within our guidance range.

Speaker #2: Our gap-to-mark-to-market was 4.1%. Cash mark-to-market decreased by 2.6%. Both below our annual business ranges. But we anticipate improving results in the next three quarters.

Gerard H. Sweeney: Cash mark to market decreased by 2.6%, both below our annual business ranges, but we anticipate improving results in the next three quarters, and as such, are maintaining our full year guidance range. Same store results were a positive 0.8% on a GAAP basis and 3.3% on a cash basis, both above our current guidance ranges. Tours in Q1 2026 exceeded Q1 2025 by 80%. Continued uptick in overall leasing activity. We also continue to experience a good conversion rate from these tours. For the trailing four quarters, 53% of our tours converted to a proposal, and from proposal, 37% converted to an executed lease. Just a couple of other additional comments regarding market dynamics. In Philadelphia, which includes our central business district and University City portfolios, we're now 94% occupied and 96% leased, with only 6% rolling through year-end 2028.

Jerry Sweeney: Cash mark to market decreased by 2.6%, both below our annual business ranges, but we anticipate improving results in the next three quarters, and as such, are maintaining our full year guidance range. Same store results were a positive 0.8% on a GAAP basis and 3.3% on a cash basis, both above our current guidance ranges. Tours in Q1 2026 exceeded Q1 2025 by 80%. Continued uptick in overall leasing activity. We also continue to experience a good conversion rate from these tours. For the trailing four quarters, 53% of our tours converted to a proposal, and from proposal, 37% converted to an executed lease. Just a couple of other additional comments regarding market dynamics. In Philadelphia, which includes our central business district and University City portfolios, we're now 94% occupied and 96% leased, with only 6% rolling through year-end 2028.

Speaker #2: And as such, are maintaining our full-year guidance range. Same store results were a positive 0.8% on a gap basis. And 3.3% on a cash basis, both above our current guidance ranges.

Speaker #2: Coarse in the first quarter of '26, exceeded the first quarter of '25 by 80%. So continued uptick in overall leasing activity. We also continue to experience a good conversion rate from these tours.

Speaker #2: For the trailing four quarters, 53% of our tours converted to a proposal. And from proposal, 37% converted to an executed lease. Just a couple of other additional comments regarding market dynamics.

Speaker #2: In Philadelphia, which includes our central business district and University City portfolios, we're now 94% occupied and 96% leased, with only 6% rolling through year-end 2028.

Gerard H. Sweeney: Our Commerce Square joint venture property is now 93% leased, bringing our overall combined Philadelphia holdings to 95% leased. Overall activity levels in our core CBD and University City markets remain very strong. We continue to outperforming our market share. As noted on the last call, we've captured more than double our market share in each of the last five years, and this trend did continue in Q1 2026, with 41% of all new leases signed in this market was at a Brandywine property. In the Pennsylvania suburbs, overall we're about 90% leased, and we continue to see solid levels of pipeline prospects for the existing vacancies. Austin is 70% occupied. That continues to lag the rest of our portfolio and creates a 340 basis point drop in overall company leasing levels. Tour volume, however, did increase 15% over prior quarters.

Jerry Sweeney: Our Commerce Square joint venture property is now 93% leased, bringing our overall combined Philadelphia holdings to 95% leased. Overall activity levels in our core CBD and University City markets remain very strong. We continue to outperforming our market share. As noted on the last call, we've captured more than double our market share in each of the last five years, and this trend did continue in Q1 2026, with 41% of all new leases signed in this market was at a Brandywine property. In the Pennsylvania suburbs, overall we're about 90% leased, and we continue to see solid levels of pipeline prospects for the existing vacancies. Austin is 70% occupied. That continues to lag the rest of our portfolio and creates a 340 basis point drop in overall company leasing levels. Tour volume, however, did increase 15% over prior quarters.

Speaker #2: Our Commerce Square joint venture property is now 93% leased, bringing our overall combined Philadelphia holdings to 95% leased. So overall activity levels in our core CBD and University City markets remain very strong.

Speaker #2: And we continue to outperform our market share. As noted in the last call, we've captured more than double our market share in each of the last five years.

Speaker #2: And this trend did continue in the first quarter of '26, with 41% of all new leases signed in this market was at a Brandywine property.

Speaker #2: In the Pennsylvania suburbs, overall we're about 90% leased. And we continue to see solid levels of pipeline prospects for the existing vacancies. Austin is 70% occupied.

Speaker #2: That continues the lag the rest of our portfolio. And creates a 340 basis point drop in overall company leasing levels. Tour volume, however, did increase 15% over prior quarters.

Gerard H. Sweeney: The operating portfolio leasing pipeline is up again this quarter by 200,000 sq ft from last quarter and remains solid at 1.7 million sq ft. That does include about 314,000 sq ft in advanced stages of negotiations. It does not include the leasing pipelines we have on either 3151 or our project at One Uptown. We also believe our marketing position in Philadelphia will continue to improve as we monitor office to residential conversion projects. We're currently monitoring more than 5 million sq ft or approximately 11% of the total office inventory in the CBD converting from office to residential or other uses. That 5 million sq ft is comprised of 1.2 million sq ft that has recently been converted, 1.3 million sq ft in active redevelopment, and 2.5 million sq ft of projects that have been announced are in the planning phases.

Jerry Sweeney: The operating portfolio leasing pipeline is up again this quarter by 200,000 sq ft from last quarter and remains solid at 1.7 million sq ft. That does include about 314,000 sq ft in advanced stages of negotiations. It does not include the leasing pipelines we have on either 3151 or our project at One Uptown. We also believe our marketing position in Philadelphia will continue to improve as we monitor office to residential conversion projects. We're currently monitoring more than 5 million sq ft or approximately 11% of the total office inventory in the CBD converting from office to residential or other uses. That 5 million sq ft is comprised of 1.2 million sq ft that has recently been converted, 1.3 million sq ft in active redevelopment, and 2.5 million sq ft of projects that have been announced are in the planning phases.

Speaker #2: The operating portfolio leasing pipeline is up again this quarter by 200,000 square feet from last quarter. And remains solid at 1.7 million square feet.

Speaker #2: That does include about 314,000 square feet in advanced stages of negotiations. It does not include the leasing pipelines we have on either 31, 51, or our project at One Uptown.

Speaker #2: So we also believe our marketing position in Philadelphia will continue to improve as we monitor office-to-residential conversion projects. We're currently monitoring more than 5 million square feet or approximately 11% of the total office inventory in the CBD converting from office-to-residential or other uses.

Speaker #2: That 5 million square feet is comprised of 1.2 million square feet that has recently been converted. 1.3 million square feet in active redevelopment. And 2.5 million square feet of projects that have been announced or in the planning phases.

Gerard H. Sweeney: From a liquidity standpoint, we remain in solid shape with only $65 million outstanding on our balance sheet and in our line of credit and $36 million of cash on hand. As previously noted, our multiple year plan is designed to return us to investment grade metrics. As such, and you'll hear more from Tom, we plan to maintain minimal balances on our line of credit. The execution of our sales program will reduce overall levels of leverage. As a point of note, almost 50% of our outstanding bonds have coupons north of 8%, which we also believe provide good refinancing opportunities for us over the next several years. In Q2, we will repay the 3025 JFK construction loan with a lower-priced seven-year financing that is approximately $100 million at a rate in the mid fives.

Jerry Sweeney: From a liquidity standpoint, we remain in solid shape with only $65 million outstanding on our balance sheet and in our line of credit and $36 million of cash on hand. As previously noted, our multiple year plan is designed to return us to investment grade metrics. As such, and you'll hear more from Tom, we plan to maintain minimal balances on our line of credit. The execution of our sales program will reduce overall levels of leverage. As a point of note, almost 50% of our outstanding bonds have coupons north of 8%, which we also believe provide good refinancing opportunities for us over the next several years. In Q2, we will repay the 3025 JFK construction loan with a lower-priced seven-year financing that is approximately $100 million at a rate in the mid fives.

Speaker #2: From a liquidity standpoint, we remain in solid shape with only 65 million dollars outstanding in our balance in our line of credit. And 36 million dollars of cash on hand.

Speaker #2: As previously noted, our multi-year plan is designed to return us to investment-grade metrics. As such—and you'll hear more from Tom—we plan to maintain minimal balances on our line of credit.

Speaker #2: The execution of our sales program will reduce overall levels of leverage. And as a point of note, almost 50% of our outstanding bonds have coupons north of 8%, which we also believe provide good refinancing opportunities for us over the next several years.

Speaker #2: In the second quarter, we will repay the 30, 25 JFK construction loan with a lower-priced seven-year financing. That is approximately $100 million at a rate in the mid-fives.

Gerard H. Sweeney: That transaction, once accomplished, will be on securing the residential component, but unencumbering the commercial component of that property for inclusion in our unencumbered asset pool. We're also in the process of extending our current unsecured line of credit and term loans and plan to complete those extensions in the next couple of quarters. As we'll outline in the next few moments, our active portfolio recycling program will have a majority of the sale proceeds being used to further improve all of our balance sheet metrics that Tom will walk you through. We do anticipate our CAD ratio continuing to improve during H2 after we fully burn off the remaining tenant improvement costs relating to leases done between 2020 and 2023. As a reminder, on our 3151 project, we did acquire our partner's interest in Q4 2025.

Jerry Sweeney: That transaction, once accomplished, will be on securing the residential component, but unencumbering the commercial component of that property for inclusion in our unencumbered asset pool. We're also in the process of extending our current unsecured line of credit and term loans and plan to complete those extensions in the next couple of quarters. As we'll outline in the next few moments, our active portfolio recycling program will have a majority of the sale proceeds being used to further improve all of our balance sheet metrics that Tom will walk you through. We do anticipate our CAD ratio continuing to improve during H2 after we fully burn off the remaining tenant improvement costs relating to leases done between 2020 and 2023. As a reminder, on our 3151 project, we did acquire our partner's interest in Q4 2025.

Speaker #2: And that transaction, once accomplished, will be on the securing the residential component, but unencumbering the commercial component of that property for inclusion in our unencumbered asset pool.

Speaker #2: We're also in the process of extending our current unsecured line of credit. And term loans and plan to complete those extensions in the next couple of quarters.

Speaker #2: And as we'll outline in the next few moments, we have our active portfolio recycling program will have a majority of the sale proceeds being used to further improve all of our balance sheet metrics that Tom will walk you through.

Speaker #2: We do anticipate our CAD ratio continuing to improve during the second half of the year. After we fully burn off the remaining tenant improvement costs, relating to leases done between 2020 and 2023.

Speaker #2: As a reminder, on our 31, 51 project, we did acquire our partners' interest in the fourth quarter of '25. That did have the temporary impact of raising our leverage levels.

Gerard H. Sweeney: That did have the temporary impact of raising our leverage levels. The pipeline on that project is up 200,000 sq ft from last quarter and does stand at approximately 1.2 million sq ft and is roughly broken down 50% office, and 50% life science. Discussions with a number of prospects are very active, with several key proposals outstanding. As a reminder, we don't have any real lease commencements or revenue generating from 3151 in our 2026 business plan. At One Uptown, we're now 63% leased, which is up from last quarter. The pipeline now stands at over 230,000 sq ft, with tenant sizes ranging between 5,000 and 50,000 sq ft. We do have six proposals outstanding, aggregating just shy of 100,000 sq ft, and we continue to see the pipeline and the velocity of decision making accelerate at our One Uptown project.

Jerry Sweeney: That did have the temporary impact of raising our leverage levels. The pipeline on that project is up 200,000 sq ft from last quarter and does stand at approximately 1.2 million sq ft and is roughly broken down 50% office, and 50% life science. Discussions with a number of prospects are very active, with several key proposals outstanding. As a reminder, we don't have any real lease commencements or revenue generating from 3151 in our 2026 business plan. At One Uptown, we're now 63% leased, which is up from last quarter. The pipeline now stands at over 230,000 sq ft, with tenant sizes ranging between 5,000 and 50,000 sq ft. We do have six proposals outstanding, aggregating just shy of 100,000 sq ft, and we continue to see the pipeline and the velocity of decision making accelerate at our One Uptown project.

Speaker #2: The pipeline on that project is up 200,000 square feet from last quarter. And does stand at approximately 1.2 million square feet. And is roughly broken down 50% office and 50% life science.

Speaker #2: Discussions with a number of prospects are very active. With several key proposals outstanding. As a reminder, we don't have any real lease commencements or revenue-generating from 31, 51 in our 26 business plan.

Speaker #2: At One Uptown, we're now 63% leased, which is up from last quarter. The pipeline now stands at over 230,000 square feet. With tenant sizes ranging between 50 and 60,000 and 50,000 square feet.

Speaker #2: We do have six proposals outstanding. Aggregating just shy of 100,000 square feet. And we continue to see the pipeline and the velocity of decision-making accelerate at our One Uptown project.

Gerard H. Sweeney: In addition, as we talked last quarterly call, in anticipation of our 2027 lease expirations at the existing buildings in our Uptown development, we will be commencing the redevelopment of one of those existing buildings. That building, 902, is about 160,000sq ft. We're anticipating completing that renovation in the late Q2 or early Q3 of 2027. Since our marketing launch of those projects, we have generated approximately 1.2 millionsq ft of additional prospects. We do expect to deliver pricing levels below the rents required for new construction, and also as some of our larger prospective tenant requirements advance, if they do, we'll also have planning underway for similar renovations for several other existing buildings. From a capital market perspective, our business plan does project $280 to $300 million of sales activity.

Jerry Sweeney: In addition, as we talked last quarterly call, in anticipation of our 2027 lease expirations at the existing buildings in our Uptown development, we will be commencing the redevelopment of one of those existing buildings. That building, 902, is about 160,000sq ft. We're anticipating completing that renovation in the late Q2 or early Q3 of 2027. Since our marketing launch of those projects, we have generated approximately 1.2 millionsq ft of additional prospects. We do expect to deliver pricing levels below the rents required for new construction, and also as some of our larger prospective tenant requirements advance, if they do, we'll also have planning underway for similar renovations for several other existing buildings. From a capital market perspective, our business plan does project $280 to $300 million of sales activity.

Speaker #2: In addition, as we talked last quarterly call, in anticipation of our 27 lease expirations at the existing buildings, in our Uptown development, we will be commencing the redevelopment of one of those existing buildings.

Speaker #2: That building, 902, is about 160,000 square feet. We anticipate completing that renovation in the late second quarter or early third quarter of '27.

Speaker #2: And since our marketing launch of those projects, we have generated approximately $1.2 million of additional square feet of prospects we do expect to deliver pricing levels below the rents required for new construction.

Speaker #2: And also, as some of our larger prospective tenant requirements advance, if they do, we'll also have planning underway for similar renovations for several other existing buildings.

Speaker #2: From a capital market perspective, our business plan does project 280 to 300 million dollars of sales activity. We anticipate closing most of those sales within the next 60 to 90 days.

Gerard H. Sweeney: We anticipate closing most of those sales within the next 60 to 90 days. We currently, as I noted earlier, have $305 million under agreement and in due diligence, and we also have several other properties in the market exploring sale exits. We do plan to recapitalize both One Uptown and Solaris during H2 2026. These recaps could provide a range from a complete sale to a pari passu joint venture where Brandywine retains a minimal stake and recovers significant capital to lower debt attribution and increase liquidity. In fact, on Solaris, we're already in the marketplace exploring some potential refinancing options. From a broad standpoint, the vast majority of our sale proceeds will reduce debt, continue to improve liquidity, and further strengthen all of our credit metrics.

Jerry Sweeney: We anticipate closing most of those sales within the next 60 to 90 days. We currently, as I noted earlier, have $305 million under agreement and in due diligence, and we also have several other properties in the market exploring sale exits. We do plan to recapitalize both One Uptown and Solaris during H2 2026. These recaps could provide a range from a complete sale to a pari passu joint venture where Brandywine retains a minimal stake and recovers significant capital to lower debt attribution and increase liquidity. In fact, on Solaris, we're already in the marketplace exploring some potential refinancing options. From a broad standpoint, the vast majority of our sale proceeds will reduce debt, continue to improve liquidity, and further strengthen all of our credit metrics.

Speaker #2: We currently, as I noted earlier, have $305 million under agreement and in due diligence. And we also have several other properties in the market exploring sale exits.

Speaker #2: We do plan to recapitalize both One Uptown and Solaris during the second half of '26. These recaps could provide a range from a complete sale to a prior pursuit joint venture, where Brandywine retains a minimal stake.

Speaker #2: And recovers significant capital to lower debt attribution and increase liquidity. And in fact, on Solaris Center, we're already in the marketplace exploring some potential refinancing options.

Speaker #2: From a broad standpoint, the vast majority of our sale proceeds will reduce debt. Continue to improve liquidity. And further strengthen all of our credit metrics.

Gerard H. Sweeney: Also while the clear priority is to lower leverage and return to investment-grade metrics, we do anticipate, given where our stock price is, utilizing a portion of those sales to repurchase our shares while lowering our leverage levels across the board. We do have that $82 million available under our existing share repurchase program, and we anticipate the debt reduction program will commence during Q2 concurrent with the receipt of sale proceeds. The response from the market on assets listed for sales have been very strong. Of what we have under agreement of sale, there's been considerable interest with the typical marketing process producing between 7 to 10 qualified bids. All buyer types were engaged, including institutional investment managers, other institutional investors, and significant interest from private capital.

Jerry Sweeney: Also while the clear priority is to lower leverage and return to investment-grade metrics, we do anticipate, given where our stock price is, utilizing a portion of those sales to repurchase our shares while lowering our leverage levels across the board. We do have that $82 million available under our existing share repurchase program, and we anticipate the debt reduction program will commence during Q2 concurrent with the receipt of sale proceeds. The response from the market on assets listed for sales have been very strong. Of what we have under agreement of sale, there's been considerable interest with the typical marketing process producing between 7 to 10 qualified bids. All buyer types were engaged, including institutional investment managers, other institutional investors, and significant interest from private capital.

Speaker #2: And also, while the clear priority is to lower leverage and return to investment-grade metrics, we do anticipate given where our stock price is utilizing a portion of those sales to repurchase our sales, our shares, while leveraging our lowering our leverage levels across the board.

Speaker #2: We do have about 82 million. Available under our existing share repurchase program. And we anticipate the debt reduction program will commence during the second quarter, concurrent with the receipt of sale proceeds.

Speaker #2: The response from the market on assets listed for sales has been very strong. What we have under agreement of sale, there's been considerable interest.

Speaker #2: With the typical marketing process producing between 7 to 10 qualified bids. All buyer types were engaged, including institutional investment managers, other institutional investors, and significant interest from private capital.

Gerard H. Sweeney: With that, Tom will review financial results for Q1 2026 and the outlook for Q2 and the balance of the year.

Jerry Sweeney: With that, Tom will review financial results for Q1 2026 and the outlook for Q2 and the balance of the year.

Speaker #2: So with that, Tom, we'll review finance results for the first quarter of '26. And the outlook for the second quarter of the balance of the year.

Thomas E. Wirth: Thank you, Jerry. Good morning. Our Q1 net loss was $48.9 million, or $0.28 per share. Our Q1 FFO totaled $20 million, or $0.11 per share, in line with our Q4 guidance and consensus estimates. Our net loss was impacted by one-time non-cash charges for property impairments totaling about $11.9 million, or $0.07 per share. Some general observations from Q1. Portfolio NOI of $70.2 million was $800,000 above our current reforecast due to better margins throughout the portfolio. G&A expense was above forecast by $300,000, primarily due to compensation expense. Other income and term fees were $2.2 million, or $300,000 below budget, primarily due to lower income from our retail operations. Third-party fees were $2.6 million or $1.1 million above forecast, primarily due to higher third-party leasing fees. Other forecasted results were generally in line.

Tom Wirth: Thank you, Jerry. Good morning. Our Q1 net loss was $48.9 million, or $0.28 per share. Our Q1 FFO totaled $20 million, or $0.11 per share, in line with our Q4 guidance and consensus estimates. Our net loss was impacted by one-time non-cash charges for property impairments totaling about $11.9 million, or $0.07 per share. Some general observations from Q1. Portfolio NOI of $70.2 million was $800,000 above our current reforecast due to better margins throughout the portfolio. G&A expense was above forecast by $300,000, primarily due to compensation expense. Other income and term fees were $2.2 million, or $300,000 below budget, primarily due to lower income from our retail operations. Third-party fees were $2.6 million or $1.1 million above forecast, primarily due to higher third-party leasing fees. Other forecasted results were generally in line.

Speaker #1: Thank you, Jerry. Good morning. Our first quarter net loss was 48.9 million, or 28 cents per share. Our first quarter FFO totaled 20 million, or 11 cents per share.

Speaker #1: In line with our fourth quarter guidance and consensus estimates. Our net loss was impacted by one-time non-cash charges for property impairments totaling about 11.9 million, or 7 cents a share.

Speaker #1: Some general observations from the first quarter: profit level NOI of 70.2 million. Was 800,000 dollars above our current reef forecast. Due to better margins throughout the portfolio, G&A expense was above forecast by 300,000, primarily due to compensation expense.

Speaker #1: Other income and term fees were 2.2 million, or 300,000, below budget, primarily due to lower income from our retail operations. And third-party fees were 2.6 million, or 1.1 million above forecast, primarily due to higher third-party leasing fees.

Speaker #1: Other forecasted results were generally in line. Looking at our debt metrics, first quarter debt service and interest coverage ratios were 1.7 million. Both below incrementally below our fourth quarter results.

Thomas E. Wirth: Looking at our debt metrics, Q1 debt service and interest coverage ratios were $1.7 million, both incrementally below our Q4 results. The decrease is primarily due to lower interest capitalization from 3151, which did increase interest expense. Our Q1 annualized combined and core net debt to EBITDA were 9.1 and 8.3 respectively. Based on our forecasted sales and debt reduction, these leverage levels will decrease during the balance of the year. Regarding our portfolio, during Q1, we did remove one property from our core portfolio that is being held for sale. That property totals 116,000 sq ft. During Q2, we will add 250 King of Prussia Road, our 168,000 sq ft life science property located in Radnor Submarket. That will be added to our core portfolio as we anticipate stabilizing that property in June at 100% occupancy.

Tom Wirth: Looking at our debt metrics, Q1 debt service and interest coverage ratios were $1.7 million, both incrementally below our Q4 results. The decrease is primarily due to lower interest capitalization from 3151, which did increase interest expense. Our Q1 annualized combined and core net debt to EBITDA were 9.1 and 8.3 respectively. Based on our forecasted sales and debt reduction, these leverage levels will decrease during the balance of the year. Regarding our portfolio, during Q1, we did remove one property from our core portfolio that is being held for sale. That property totals 116,000 sq ft. During Q2, we will add 250 King of Prussia Road, our 168,000 sq ft life science property located in Radnor Submarket. That will be added to our core portfolio as we anticipate stabilizing that property in June at 100% occupancy.

Speaker #1: The decrease is primarily due to lower interest capitalization from 3151, which did increase interest expense. Our first quarter annualized combined and core net debt to EBITDA were 91 and 83, respectively.

Speaker #1: Based on our free forecast, our forecasted sales and debt reduction, these level leverage levers will decrease during the balance of the year. Regarding our portfolio, during the fourth quarter, we did remove one property from our core portfolio that is being held for sale.

Speaker #1: That property totals 116,000 square feet. During the second quarter, we will add 250 King of Prussia Road, our 168,000 square foot life science property located in Radner Submarket.

Speaker #1: That will be added to our core portfolio as we anticipate stabilizing that property in June, at 100% occupancy. From a liquidity standpoint, we continue to maintain a solid liquidity position with 36 million of cash and 65 million outstanding on the secured line of credit.

Thomas E. Wirth: From a liquidity standpoint, we continue to maintain a solid liquidity position with $36 million of cash and $65 million outstanding on the unsecured line of credit at the quarter end. From the sales activity, we are anticipating $290 million of wholly owned sales at the midpoint, which is weighted towards H1 of the year. Those cap rates continue to price at roughly 8% on a cash and a little above that on a GAAP basis. As Jerry touched on, we now have $305 million of potential sales in various stages of due diligence, and the anticipated proceeds will be used to reduce debt and continue our path towards investment grade. We also intend to use a portion of the proceeds to opportunistically buy back shares on an earnings neutral basis.

Tom Wirth: From a liquidity standpoint, we continue to maintain a solid liquidity position with $36 million of cash and $65 million outstanding on the unsecured line of credit at the quarter end. From the sales activity, we are anticipating $290 million of wholly owned sales at the midpoint, which is weighted towards H1 of the year. Those cap rates continue to price at roughly 8% on a cash and a little above that on a GAAP basis. As Jerry touched on, we now have $305 million of potential sales in various stages of due diligence, and the anticipated proceeds will be used to reduce debt and continue our path towards investment grade. We also intend to use a portion of the proceeds to opportunistically buy back shares on an earnings neutral basis.

Speaker #1: Unsecured line of credit at the quarter end. From the sales activity, we are anticipating 290 million of wholly owned sales at the midpoint, which is weighted towards the first half of the year.

Speaker #1: And those cap rates continue to price at roughly 8% on a cash and a little above that on a gap basis. As Jerry touched on, we now have 305 million of potential sales in various stages of due diligence.

Speaker #1: And the anticipated proceeds will be used to reduce debt and continue our path towards investment grade. We also intend to use a portion of the proceeds to opportunistically buy back shares on an earnings neutral basis.

Thomas E. Wirth: On financing activity, at 3025 JFK, the $178 million consolidated construction loan matures in July 2026. We plan to complete a secured financing on the residential portion of that property totaling $100 million and use the proceeds from that loan and the unsecured line of credit to unencumber the office portion of that portfolio. The $100 million, seven-year secured financing will be fixed at all-in rate of roughly 5.7%. On the credit facility, our unsecured line of credit has an initial maturity date in June 2026, with extensions through June 2027, and we are working with our bank group to amend and extend the facility ahead of its maturity. Capitalization of the ATX joint ventures.

Tom Wirth: On financing activity, at 3025 JFK, the $178 million consolidated construction loan matures in July 2026. We plan to complete a secured financing on the residential portion of that property totaling $100 million and use the proceeds from that loan and the unsecured line of credit to unencumber the office portion of that portfolio. The $100 million, seven-year secured financing will be fixed at all-in rate of roughly 5.7%. On the credit facility, our unsecured line of credit has an initial maturity date in June 2026, with extensions through June 2027, and we are working with our bank group to amend and extend the facility ahead of its maturity. Capitalization of the ATX joint ventures.

Speaker #1: On financing activity, the $178 million at 3025 JFK—the $178 million consolidated construction loan—matures in July of 2026. We plan to complete a secured financing on the residential portion of that property.

Speaker #1: Totaling 100 million dollars and use the proceeds from that loan and the unsecured line of credit to unencumber the office portion of that portfolio.

Speaker #1: The 100 million dollars seven-year secured financing will be fixed at a rate all-in rate of roughly 5.7%. On the credit facility, our unsecured line of credit has an initial maturity date in June of 2026, with extensions through June of 2027.

Speaker #1: And we are working with our bank group to amend and extend the facility ahead of its maturity. Capitalization of the ATX joint ventures as our joint ventures continue to lease up and cash flow improves, we anticipate recapitalizing those projects on a peri-pursue common equity joint venture basis during the second half of 2026, with our owner ship decreasing to a minority stake or an outright sale.

Thomas E. Wirth: As our joint ventures continue to lease up and cash flow improves, we anticipate recapitalizing those projects on a pari passu common equity joint venture basis during H2 2026, with our ownership decreasing to a minority stake or an outright sale. We announced our intent to extend two existing loans on those ATX projects, and while we still anticipate closing on those transactions in H2 2026, we felt extending the loans will allow us time to run the sales process without concern about the maturity dates. The recapitalization of both projects should generate between $40 and $50 million of cash that we will use to further reduce our wholly owned leverage and will be slightly accretive to earnings and improve leverage for the balance of the year.

Tom Wirth: As our joint ventures continue to lease up and cash flow improves, we anticipate recapitalizing those projects on a pari passu common equity joint venture basis during H2 2026, with our ownership decreasing to a minority stake or an outright sale. We announced our intent to extend two existing loans on those ATX projects, and while we still anticipate closing on those transactions in H2 2026, we felt extending the loans will allow us time to run the sales process without concern about the maturity dates. The recapitalization of both projects should generate between $40 and $50 million of cash that we will use to further reduce our wholly owned leverage and will be slightly accretive to earnings and improve leverage for the balance of the year.

Speaker #1: We announced our intent to extend two existing loans on those ATX projects, and while we still anticipate closing on those transactions in the second half of 2026, we felt extending the loans will allow us time to run the sales process without concern about the maturity dates.

Speaker #1: The capital recapitalization of both projects should generate between $40 million and $50 million of cash that we will use to further reduce our wholly owned leverage and will be slightly accretive to earnings and improve leverage for the balance of the year.

Thomas E. Wirth: Due to the timing and change in ownership structure being later in 2026, we have not included any benefit of these transactions in our FFO guidance. We feel incrementally more positive about executing our land sales program this year, but we have not included any land gains or losses in our results. Focusing on the Q2 guidance, property level operating income will total about $72.3 million and will be about $1.3 million above our Q1. The incremental improvement is primarily due to increased NOI at our CBD portfolio and the stabilization of 250 King of Prussia Road. These increases are partially offset by start-up costs at the Radnor Hotel project, which should open during this quarter. FFO contribution from our joint ventures will be -$900,000 for Q2. The decrease primarily due to higher interest rates on some of the floating rate debt.

Tom Wirth: Due to the timing and change in ownership structure being later in 2026, we have not included any benefit of these transactions in our FFO guidance. We feel incrementally more positive about executing our land sales program this year, but we have not included any land gains or losses in our results. Focusing on the Q2 guidance, property level operating income will total about $72.3 million and will be about $1.3 million above our Q1. The incremental improvement is primarily due to increased NOI at our CBD portfolio and the stabilization of 250 King of Prussia Road. These increases are partially offset by start-up costs at the Radnor Hotel project, which should open during this quarter. FFO contribution from our joint ventures will be -$900,000 for Q2. The decrease primarily due to higher interest rates on some of the floating rate debt.

Speaker #1: Due to the timing and change in ownership structure being later in 2026, we have not included any benefit of these transactions in our FFO guidance.

Speaker #1: We feel incrementally more positive about executing our land sales program this year. But we have not included any land gains or losses in our results.

Speaker #1: Focusing on the second quarter guidance, property level operating income will total about 72.3 million. And we'll be about a million three above our first quarter.

Speaker #1: The incremental improvement is primarily due to increased NOI at our CBD portfolio. And the stabilization of 250 King of Prussia Road. This increases are partially offset by startup costs at the Radner Hotel project which should open during this quarter.

Speaker #1: FFO contribution from our joint ventures will be a negative 900,000. For the second quarter, the decrease primarily due to higher interest rates on some of the floating rate debt.

Thomas E. Wirth: G&A expense for Q2 will total about $9.5 million. The sequential decrease is consistent with prior years, and is primarily due to the timing of our deferred compensation recognition. Our full-year range of $36 to 37 million remains intact. Our interest expense, including deferred financing costs, will be approximately $43 million, which includes about $700,000 of capitalized interest. Termination and other income will total about $2.5 million. Net third-party fees will approximate $1.5 million. Interest income will be about $400,000, and our diluted share count will be about 180 million. Again, these Q2 results and share count did not take into account any potential sales and share buybacks. Turning to our capital plan. Our capital plan for the balance of the year remains active and totals about $450 million. Our Q1 2026 CAD payout was 92.7%.

Tom Wirth: G&A expense for Q2 will total about $9.5 million. The sequential decrease is consistent with prior years, and is primarily due to the timing of our deferred compensation recognition. Our full-year range of $36 to 37 million remains intact. Our interest expense, including deferred financing costs, will be approximately $43 million, which includes about $700,000 of capitalized interest. Termination and other income will total about $2.5 million. Net third-party fees will approximate $1.5 million. Interest income will be about $400,000, and our diluted share count will be about 180 million. Again, these Q2 results and share count did not take into account any potential sales and share buybacks. Turning to our capital plan. Our capital plan for the balance of the year remains active and totals about $450 million. Our Q1 2026 CAD payout was 92.7%.

Speaker #1: GNA expense for the second quarter will total about nine and a half million dollars. The sequential decrease is consistent with prior years and is primarily due to the timing of our deferred compensation recognition.

Speaker #1: Our full year range of 37 million remains intact. Our interest expense including deferred financing costs will approximately 43 million, which includes about 700,000 of capitalized interest.

Speaker #1: Termination and other income will total about 2.5 million. Net third-party fees will approximate 1.5 million. Interest income will be about 400,000 dollars. And our diluted share count will be about 180 million.

Speaker #1: Again, these second quarter results and share count did not take into account any potential sales and share buybacks. Turning to our capital plan, our capital plan for the balance of the year remains active.

Speaker #1: And totals about 450 million dollars. Our first quarter 2026 CAD payout was 92.7%. However, our payout will remain within our business however, our payout ratio for the balance of the year will remain within our 70 to 90 percent range.

Thomas E. Wirth: However, our payout ratio for the balance of the year will remain within our 70% to 90% range, as we expect incremental improvement in the payout ratio as FFO improves during the balance of the year. Looking at the larger uses for the rest of the year, we will refinance 30-25 JFK with a construction loan, utilize $140 million of debt and share buyback. Development spend will be about $50 million. We have $42 million of common dividends. Our revenue maintenance will be $25 million, and revenue creation will be $25 million, with $15 million of equity contributions to primarily fund tenant leasing at One Uptown and Solaris extension. The sources to offset those uses are going to be $80 million of cash flow after interest payments, speculative asset sales totaling $290 million, and $100 million of loan proceeds from our Vera residential project financing.

Tom Wirth: However, our payout ratio for the balance of the year will remain within our 70% to 90% range, as we expect incremental improvement in the payout ratio as FFO improves during the balance of the year. Looking at the larger uses for the rest of the year, we will refinance 30-25 JFK with a construction loan, utilize $140 million of debt and share buyback. Development spend will be about $50 million. We have $42 million of common dividends. Our revenue maintenance will be $25 million, and revenue creation will be $25 million, with $15 million of equity contributions to primarily fund tenant leasing at One Uptown and Solaris extension. The sources to offset those uses are going to be $80 million of cash flow after interest payments, speculative asset sales totaling $290 million, and $100 million of loan proceeds from our Vera residential project financing.

Speaker #1: As expected, as we expect incremental improvement in the payout ratio as FFO improves during the balance of the year. Looking at the larger uses for the rest of the year, we will refinance 3025 JFK.

Speaker #1: With the construction loan, utilize 140 million of debt and share buyback. Development spend will be about 50 million dollars. We have 42 million of common dividends.

Speaker #1: Our revenue maintained and revenue create will both be revenue maintained will be 25 million and revenue create will be 25 million. With 15 million of equity contributions to primarily fund tenant leasing at one uptown.

Speaker #1: And Solaris Extension. The sources are going to be the sources to offset those uses are going to be 80 million of cash flow after interest payments, speculative asset sales totaling 290 million, and 100 million of loan proceeds from our Vera residential project financing.

Thomas E. Wirth: Based on the capital plan, we anticipate having approximately $10 million of net outstanding on the line of credit. We anticipate net debt-to-EBITDA will be within the range of 8.4 to 8.8, and our fixed charge coverage will be about 1.8 to 2.0. Implicit in these ratios is the execution of our sales program and the recapitalization of the ATX developments. These ratios will continue to be elevated until increased revenue comes online from our development projects, particularly 3151, which is now a $250 million wholly owned investment, which is currently producing operating losses. As these developments stabilize, our leverage decrease will further accelerate. As we anticipate that those leverage metrics will improve as the year progresses. I will now turn the call back over to Jerry.

Tom Wirth: Based on the capital plan, we anticipate having approximately $10 million of net outstanding on the line of credit. We anticipate net debt-to-EBITDA will be within the range of 8.4 to 8.8, and our fixed charge coverage will be about 1.8 to 2.0. Implicit in these ratios is the execution of our sales program and the recapitalization of the ATX developments. These ratios will continue to be elevated until increased revenue comes online from our development projects, particularly 3151, which is now a $250 million wholly owned investment, which is currently producing operating losses. As these developments stabilize, our leverage decrease will further accelerate. As we anticipate that those leverage metrics will improve as the year progresses. I will now turn the call back over to Jerry.

Speaker #1: Based on the capital plan, we anticipate having approximately $10 million of net outstanding on the line of credit. We anticipate net debt to EBITDA will be within the range of 8.4 to 8.8.

Speaker #1: And our fixed charge coverage will be about 1.8 to 2.0. Implicit in these ratios is the execution of our sales program and the recapitalization of the ATX developments.

Speaker #1: These ratios will continue to be elevated until increased revenue comes online from our development projects particularly 3151, which is now a 250 million dollar wholly owned investment, which is currently producing operating losses.

Speaker #1: As these developments stabilize, our leverage decrease will further accelerate. And as we anticipate that those leverage metrics will improve as the year progresses. I will now turn the call back over to Jerry.

Gerard H. Sweeney: Great, Tom, thanks very much. As we look ahead, the operating platform enables us to capitalize on improving real estate market conditions. Our plan for 2026 shows earnings growth over 25, and we expect further improvement in growth in 2027. As we continue to push occupancy levels across the board, as Tom touched on, generate results coming out of our two remaining office and life science development projects, we certainly expect that there'll be incremental NOI that will be available for strengthening our balance sheet and for other uses. The groundwork's been laid, and we'll continue to build on this momentum to drive long-term value. With that, we are delighted to open up the floor for questions. As we always do, we ask that in the interest of time, you limit yourself to one question and a follow-up.

Jerry Sweeney: Great, Tom, thanks very much. As we look ahead, the operating platform enables us to capitalize on improving real estate market conditions. Our plan for 2026 shows earnings growth over 25, and we expect further improvement in growth in 2027. As we continue to push occupancy levels across the board, as Tom touched on, generate results coming out of our two remaining office and life science development projects, we certainly expect that there'll be incremental NOI that will be available for strengthening our balance sheet and for other uses. The groundwork's been laid, and we'll continue to build on this momentum to drive long-term value. With that, we are delighted to open up the floor for questions. As we always do, we ask that in the interest of time, you limit yourself to one question and a follow-up.

Speaker #1: Great, Tom. Thanks very much. So as we look ahead, the operating platform enables us to capitalize on improving real estate market conditions. Our plan for 2026 shows earning growth over 2025.

Speaker #1: And we expect further improvement in growth in 2027. And as we continue to push occupancy levels across the board, as Tom touched on, generate results coming out of our two remaining office and life science development projects.

Speaker #1: We certainly expect that there'll be incremental NOI that will be available for strengthening our balance sheet and for other uses. So the groundwork's been laid, and we'll continue to build on this momentum to drive long-term value.

Speaker #1: And with that, we are delighted to open up the floor for questions. As we always do, we ask that in the interest of time, you limit yourself to one question to follow up.

Gerard H. Sweeney: Michelle, we're happy to open the floor up for questions at this point.

Jerry Sweeney: Michelle, we're happy to open the floor up for questions at this point.

Operator: Thank you. As a reminder to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Our first question comes from Nick Joseph with Citi. Your line is now open.

Speaker #1: So Michelle, we're happy to open the floor for questions at this point. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced.

Speaker #1: To withdraw your question, please press star 11 again. End our first question comes from Nick Joseph with City. Your line is now open.

Nick Joseph: Thanks. Jerry, you talked about the active transaction market and lots of buyer interest in the bidder pool there. How does that inform additional asset sales from here beyond what's currently under contract?

Speaker #2: Thanks. Jerry, you talked about the active transaction market and lots of buyer interest. And the bidder pool there. So how does that inform additional asset sales from here beyond what's currently under contract?

Gerard H. Sweeney: Yeah. A great question. I think it actually is very helpful for us because we actually, by design, put a fairly broad range of product in the marketplace to kind of test we thought the investor segments or sentiments might be. I think certainly given the velocity we saw on each of these sales and the fairly competitive final bid processes we went through to generate the pricing we were targeting, I think we certainly, as I even touched on in my comment, have a number of other properties that are in the market for sale. We're going through the underwriting to see what those BOVs might be as we put those in the marketplace. Certainly, I think the breadth of response we got ranging from tier one institutional investors to large private equity funds, to traditional high-net-worth family offices, to syndicators was a hoped-for result.

Jerry Sweeney: Yeah. A great question. I think it actually is very helpful for us because we actually, by design, put a fairly broad range of product in the marketplace to kind of test we thought the investor segments or sentiments might be. I think certainly given the velocity we saw on each of these sales and the fairly competitive final bid processes we went through to generate the pricing we were targeting, I think we certainly, as I even touched on in my comment, have a number of other properties that are in the market for sale. We're going through the underwriting to see what those BOVs might be as we put those in the marketplace. Certainly, I think the breadth of response we got ranging from tier one institutional investors to large private equity funds, to traditional high-net-worth family offices, to syndicators was a hoped-for result.

Speaker #3: Yeah, great question. I think it actually is very helpful for us because we actually by design put a fairly broad range of product in the marketplace to kind of test what we thought the investor segments or sentiments might be.

Speaker #3: And I think certainly given the velocity we saw in each of these sales and the fairly competitive final bid process as we went through to generate the price we were targeting, I think we certainly as I even touched on in my comment, have a number of other properties that we're thinking about that are in the market for sale or we're going through the underwriting to see what those BOVs might be.

Speaker #3: As we put those in the marketplace. But certainly, I think the breadth of response we got—ranging from tier one institutional investors, to large private equity funds, to traditional high net worth family offices, to syndicators—was a hoped-for result.

Gerard H. Sweeney: We weren't sure with some of the properties we put in the market what the bid list would wind up being, and they wound up being a lot more robust than we thought they would be. I think with the debt market showing some signs of stability depending upon the day of the week it is, I think that has given buyers a lot more comfort of underwriting some of the assets we've put into the marketplace. I think it was all good news from that front. Certainly, we're very happy to be sitting here where we are with this many properties under agreement, going through final due diligence, and with closing schedule for the next 60 to 90 days to kind of help us execute the debt reduction and liquidity program we put in place.

Jerry Sweeney: We weren't sure with some of the properties we put in the market what the bid list would wind up being, and they wound up being a lot more robust than we thought they would be. I think with the debt market showing some signs of stability depending upon the day of the week it is, I think that has given buyers a lot more comfort of underwriting some of the assets we've put into the marketplace. I think it was all good news from that front. Certainly, we're very happy to be sitting here where we are with this many properties under agreement, going through final due diligence, and with closing schedule for the next 60 to 90 days to kind of help us execute the debt reduction and liquidity program we put in place.

Speaker #3: We weren't sure with some of the properties we put in the market what the bid list would wind up being. And they wound up being a lot more robust than we thought they would be.

Speaker #3: So I think certainly with the debt market showing some signs of stability depending upon the day of the week it is, I think that has given buyers, I think, a lot more comfort of underwriting some of the assets we put into the marketplace.

Speaker #3: So I think it was all good news from that front. Certainly, we're very happy to be sitting here where we are with this many properties under agreement going through final due diligence.

Speaker #3: And with closing schedule for the next 60 to 90 days to kind of help us execute the debt reduction and liquidity program we put in place.

Gerard H. Sweeney: I think another good sign of the office market recovering from different capital sources.

Jerry Sweeney: I think another good sign of the office market recovering from different capital sources.

Speaker #3: So I think another good sign of the office market recovering from different capital sources.

Nick Joseph: Makes sense. If you do lean into it more, how would you balance additional buybacks versus leverage reductions beyond what's currently contemplated?

Speaker #2: Makes sense. And if you do lean into it more, how would you balance additional buybacks versus leverage reductions beyond what's currently contemplated?

Gerard H. Sweeney: Yeah, look, I think that the primary objective, as both Tom and I touched on, is to improve the credit metrics. That's by far the number one objective. As we talked last quarter, buying out our preferred partners positions at the Schuylkill Yards project temporarily raised leverage. Our number one goal is to get those leverage levels back to what we've outlined in our business plan. Certainly, to the extent that pricing is better, we generate more sales velocity, and we see a clear path towards achieving those balance sheet metrics. I think then we certainly are recognizing where the stock price is, want to deploy some capital there, as Tom mentioned, on a kind of leverage neutral, earnings neutral basis.

Jerry Sweeney: Yeah, look, I think that the primary objective, as both Tom and I touched on, is to improve the credit metrics. That's by far the number one objective. As we talked last quarter, buying out our preferred partners positions at the Schuylkill Yards project temporarily raised leverage. Our number one goal is to get those leverage levels back to what we've outlined in our business plan. Certainly, to the extent that pricing is better, we generate more sales velocity, and we see a clear path towards achieving those balance sheet metrics. I think then we certainly are recognizing where the stock price is, want to deploy some capital there, as Tom mentioned, on a kind of leverage neutral, earnings neutral basis.

Speaker #3: Yeah, look, I think the primary objective is both Tom and I touched on is to improve the credit metrics. That's by far the number one objective.

Speaker #3: As we talked last quarter, buying out our preferred partner's positions at Schuylkill Yards project temporarily raised leverage. Our number one goal is to get those leverage levels back to what we've outlined in our business plan.

Speaker #3: And certainly, to the extent that pricing is better, we generate more sales velocity. And we see a clear path towards achieving those balance sheet metrics.

Speaker #3: I think then we certainly recognizing where the stock price is when it deploys some capital there, as Tom mentioned on a kind of leverage neutral earnings neutral basis.

Nick Joseph: Thank you.

Gerard H. Sweeney: Thank you.

Jerry Sweeney: Thank you.

Operator: Thank you. Our next question is going to come from Steve Sakwa with Evercore. Your line's open.

Speaker #2: Thank you.

Speaker #3: Thank you.

Speaker #1: Thank you. And our next question is going to come from Manus Ebeck with Evercore Your Lines Open.

Steve Sakwa: Yeah. Hey, thanks for taking the question. Just wondering if you could expand a little bit on the interest that you're seeing for the 902 building in Uptown ATX. Just I guess the interest you gathered so far is mainly new-to-market tenants or existing tenants in the market. Just to help us understand maybe a little bit.

Speaker #4: Yeah, hey, thanks for taking the question. Just wondering if you could expand a little bit on the interest that you're seeing for the 902 building and Uptown ATX.

Speaker #4: Just I guess the interest you gathered so far is mainly new to market tenants or existing tenants in the market just like help us understand maybe a little bit.

Gerard H. Sweeney: Yeah. Good morning. Sure. Happy to walk through that. As we talked last quarter, we announced to the kind of the leasing marketplace that given the significant uptick in zoning capacity we're able to achieve at One Uptown and the pending departure of a large tenant, we really focused on how we could reposition several of those assets at a very attractive price point for the tenant market. That approach was very, very well received from the marketplace. We have a couple of very large prospects we're talking to. Most of them are in market, but several of those have significant expansion requirements. Some of the newer tenants to market that we're seeing, Steve, are really on the existing One Uptown pipeline. The larger prospects we're talking to about the renovations of the 900 buildings are mostly in market, but a couple with significant expansion, and/or consolidation opportunities.

Jerry Sweeney: Yeah. Good morning. Sure. Happy to walk through that. As we talked last quarter, we announced to the kind of the leasing marketplace that given the significant uptick in zoning capacity we're able to achieve at One Uptown and the pending departure of a large tenant, we really focused on how we could reposition several of those assets at a very attractive price point for the tenant market. That approach was very, very well received from the marketplace. We have a couple of very large prospects we're talking to. Most of them are in market, but several of those have significant expansion requirements. Some of the newer tenants to market that we're seeing, Steve, are really on the existing One Uptown pipeline. The larger prospects we're talking to about the renovations of the 900 buildings are mostly in market, but a couple with significant expansion, and/or consolidation opportunities.

Speaker #3: Yeah, yeah, good morning. Sure, happy to walk through that. Yeah, as we talked last quarter, we announced to the kind of leasing marketplace that given the significant uptick in zoning capacity, we're able to achieve it one uptown.

Speaker #3: And depending departure of a large tenant, we really focused on how we could reposition several of those assets at a very attractive price point for the tenant market.

Speaker #3: That approach was very, very well received from the marketplace. So we have a couple of very large prospects we're talking to. Most of them are in market, but several of those have significant expansion requirements.

Speaker #3: Some of the newer tenants in the market that we're seeing, Manus, are really on the existing One Uptown pipeline. But the larger prospects we're talking to about the renovations of the 900 buildings are mostly in-market, but a couple with significant expansion and/or consolidation opportunities.

Gerard H. Sweeney: I think we've been very happy with the response we're getting. I'd say there's a fairly high level of active, substantive dialogue with several of these users. Who knows where that goes, but the signals are very positive, and we've really ramped up our planning efforts to make sure that if we do in fact get substantive results from these prospects, that we can move forward with these renovations fairly expeditiously.

Jerry Sweeney: I think we've been very happy with the response we're getting. I'd say there's a fairly high level of active, substantive dialogue with several of these users. Who knows where that goes, but the signals are very positive, and we've really ramped up our planning efforts to make sure that if we do in fact get substantive results from these prospects, that we can move forward with these renovations fairly expeditiously.

Speaker #3: So I think we've been very happy with the response we're getting. I'd say there's a fairly high level of active substantive dialogue with several of these users who knows where that goes.

Speaker #3: But the signals are very positive. And we've really ramped up our planning efforts to make sure that if we do in fact get substantive results from these prospects, that we can move forward with these renovations fairly expeditiously.

Steve Sakwa: Got it. That makes sense. I appreciate it. Maybe a quick follow-up on Philly, and the life science market there. Just was curious to hear if there's any update on how you just feel about the life science leasing, which I know has been challenging over the last year. If those tenants coming a little bit back now out again in 2026 or just was wondering how that's tying up.

Speaker #4: Got it. That makes sense. I appreciate it. And maybe a quick follow-up on Philly—in the life science market there, I was just curious to hear if there's any update on how you feel about the life science leasing, which I know has been challenging over the last year.

Speaker #4: If those tenants coming a little bit back now, I would again in 26 or just up.

Gerard H. Sweeney: Yeah, no, I think we are seeing the proverbial green shoots in the life science market, capital flowing a little bit better. Of course, there's a macro overhang of regulatory risk, but definitely an uptick in tone. The pipeline, as I mentioned, for 3151 we have a couple of larger institutions that we're talking to that are real in their requirement but slow in their execution pace. We have a number of smaller life science companies that we continue a very active dialogue with about making 3151 their home. Then, of course, we've seen an uptick in office tenant requirements, given the tightness of the Class A office market in Philadelphia.

Jerry Sweeney: Yeah, no, I think we are seeing the proverbial green shoots in the life science market, capital flowing a little bit better. Of course, there's a macro overhang of regulatory risk, but definitely an uptick in tone. The pipeline, as I mentioned, for 3151 we have a couple of larger institutions that we're talking to that are real in their requirement but slow in their execution pace. We have a number of smaller life science companies that we continue a very active dialogue with about making 3151 their home. Then, of course, we've seen an uptick in office tenant requirements, given the tightness of the Class A office market in Philadelphia.

Speaker #3: Yeah, no, I think we are seeing the proverbial green shoots in the life science market. Capital flowing a little bit better. Of course, there's a macro overhang of regulatory risk.

Speaker #3: But definitely an uptick in tone. And the pipeline, as I mentioned, for 3151, we have a couple of larger institutions that we're talking to that are real in their requirement, but slow in their execution pace.

Speaker #3: And we have a number of smaller life science companies that we continue with very active dialogue with about making 3151 their home. And then, of course, we've seen an uptick in office tenant requirements, given the tightness of the class A office market in Philadelphia.

Gerard H. Sweeney: I mean, certainly when we're sitting in our Philadelphia trophy class properties at 95%+ leased with really a dearth of available space for the next couple of years, we've been able to pivot some of those prospects over to look at 3151, and the tone of those conversations is constructive as well. We are certainly looking forward to getting some leases executed there as Tom touched on, generating revenue coming out of 3151. Certainly, given the size of the pipeline we have, we see visibility on the near term horizon, but it's a very important part of our balance sheet strengthening program as well.

Jerry Sweeney: I mean, certainly when we're sitting in our Philadelphia trophy class properties at 95%+ leased with really a dearth of available space for the next couple of years, we've been able to pivot some of those prospects over to look at 3151, and the tone of those conversations is constructive as well. We are certainly looking forward to getting some leases executed there as Tom touched on, generating revenue coming out of 3151. Certainly, given the size of the pipeline we have, we see visibility on the near term horizon, but it's a very important part of our balance sheet strengthening program as well.

Speaker #3: I mean, certainly when we're sitting in our Philadelphia

Speaker #1: Trophy class properties at 95 plus percent leased with really a dearth of available space for the next couple of years , we've been able to pivot some of those prospects over to look at 31 , 51 and the tone of those conversations is , is constructive as well .

Speaker #1: We are certainly looking forward to , you know , getting some leases executed there . As Tom touched on . You know , generating revenue coming out of 31 , 51 , certainly given the size of the pipeline , we have , we see visibility on the near term horizon .

Speaker #1: But it's a very important part of our balance sheet strengthening program as well

Steve Sakwa: Great. Thank you.

Gerard H. Sweeney: You're welcome.

Jerry Sweeney: You're welcome.

Operator: Thank you. The next question will come from Dylan Brzezinski with Green Street. Your line is open.

Speaker #2: Great . Thank you .

Speaker #3: You're welcome .

Speaker #4: Thank you . And the next question will come from Dylan Burzynski with Green Street . Your line is open .

Dylan Brzezinski: Hey, guys. Thanks for taking the question. Just going back to sort of the dispositions. Jerry, you mentioned that it's sort of a mix of different assets, but are you able to sort of share percentage of assets that you guys are looking to sell as core versus non-core within the overall Brandywine portfolio?

Dylan Burzinski: Hey, guys. Thanks for taking the question. Just going back to sort of the dispositions. Jerry, you mentioned that it's sort of a mix of different assets, but are you able to sort of share percentage of assets that you guys are looking to sell as core versus non-core within the overall Brandywine portfolio?

Speaker #5: Hey guys . Thanks for taking the question . Just going back to sort of the dispositions , Jerry , you mentioned that it's sort of a mix of different assets , but able to sort of share like , you know , percentage of assets

Gerard H. Sweeney: Yeah. I think we have 1 asset that we would consider to be core, that we're selling. The rest are, I wouldn't say are non-core, but they're less than core core. Look, our approach today on the sale program, as we outlined last quarter, was to put a variety of assets in the marketplace to really test the investor appetite across all different asset sizes, weighted average lease terms, age, sub-market positioning, et cetera. Because one of our objectives really was, as we get through this first phase of sales, was to really start to get some insights into how we view the investor marketplace for the next 4 to 6 quarters as we look forward to our business plan execution in 2027 as well.

Jerry Sweeney: Yeah. I think we have 1 asset that we would consider to be core, that we're selling. The rest are, I wouldn't say are non-core, but they're less than core core. Look, our approach today on the sale program, as we outlined last quarter, was to put a variety of assets in the marketplace to really test the investor appetite across all different asset sizes, weighted average lease terms, age, sub-market positioning, et cetera. Because one of our objectives really was, as we get through this first phase of sales, was to really start to get some insights into how we view the investor marketplace for the next 4 to 6 quarters as we look forward to our business plan execution in 2027 as well.

Speaker #1: As we get through this first phase of sales was to really start to get some insights into how we viewed the investor marketplace .

Speaker #1: You know , for the next 4 to 6 quarters as we look forward to our , you know , business plan execution in 27 as well .

Speaker #1: So by design , we put a wide range of properties out there . Dylan . And I think we've got the response as on a previous question that we were , that we were hoping to achieve

Gerard H. Sweeney: By design, we put a wide range of properties out there, Dylan, and I think we've got the response on a previous question that we're hoping to achieve.

Jerry Sweeney: By design, we put a wide range of properties out there, Dylan, and I think we've got the response on a previous question that we're hoping to achieve.

Speaker #2: Great .

Dylan Brzezinski: Great. That's helpful context. Just going back to 3151 Market, I see the yield still remains at sort of 7.5% yield on cost. I don't think that's changed over the last several years. Can I just talk about sort of confidence in hitting that given life science leasing costs are obviously much higher today? I know some of it's office related, but just sort of curious.

Dylan Burzinski: Great. That's helpful context. Just going back to 3151 Market, I see the yield still remains at sort of 7.5% yield on cost. I don't think that's changed over the last several years. Can I just talk about sort of confidence in hitting that given life science leasing costs are obviously much higher today? I know some of it's office related, but just sort of curious.

Speaker #5: That's helpful. Context. And then just going back to 3151 Market, you know, I see the yield still remains at sort of a 7.5% yield on cost.

Speaker #5: I don't think that's changed over the last several years . Can I just talk about sort of confidence in hitting that given , you know , life science leasing costs are obviously much higher today .

Speaker #5: I know some of it's office related, but just sort of curious.

Speaker #1: No , I think as we go through the pro forma exercise and modeling some of the existing deals we have in place , we still feel confident about hitting that target .

Gerard H. Sweeney: No. I think as we go through the pro forma exercise and model in some of the existing deals we have in place, we still feel confident about hitting that target. The timing of getting leases executed has been really one of the more challenging aspects that we faced. We've had no real price resistance. Certainly, what we've been able to see, even with the softening of the life science market, are proposals that do reflect the higher level of tenant improvement costs, show that we're able to get a higher going-in rental rate, lower free rent concessions, and frankly, longer lease terms, which generate the effective rent targets that we're after.

Jerry Sweeney: No. I think as we go through the pro forma exercise and model in some of the existing deals we have in place, we still feel confident about hitting that target. The timing of getting leases executed has been really one of the more challenging aspects that we faced. We've had no real price resistance. Certainly, what we've been able to see, even with the softening of the life science market, are proposals that do reflect the higher level of tenant improvement costs, show that we're able to get a higher going-in rental rate, lower free rent concessions, and frankly, longer lease terms, which generate the effective rent targets that we're after.

Speaker #1: The the timing of that , of getting leases executed has been really one of the , the more challenging aspects that we faced .

Speaker #1: But we've had no real price resistance . And certainly what we've been able to see , even with the , the softening of the life science market , are proposals that do reflect a higher level of tenant improvement costs Sure that we're able to get a higher going in rental rate , lower free rent concessions .

Speaker #1: And frankly, longer lease terms, which generate the effective rent targets that we're after,

Speaker #2: Perfect . Thanks .

Dylan Brzezinski: Perfect. Thanks, Jerry. Have a good one.

Dylan Burzinski: Perfect. Thanks, Jerry. Have a good one.

Speaker #5: Jerry . Have a good one .

Speaker #1: Thanks , Dylan . You , too

Gerard H. Sweeney: Thanks, Dylan. You, too.

Jerry Sweeney: Thanks, Dylan. You, too.

Speaker #4: Thank you . And as a reminder to ask a question , please press star one one on your telephone . And our next question is going to come from you , Paul Rana with KeyBanc Capital Markets .

Operator: Thank you. As a reminder to ask a question, please press star one one on your telephone. Our next question is going to come from you, Michael Rana with KeyBanc Capital Markets. Your line is open.

Speaker #4: Your line is open

Speaker #6: Great . Thank you . Jerry , you mentioned you have six proposals out on one uptown that totals around 100,000ft² . You know , do you have any sense on the probability of those getting done and any potential timing that you could provide on those proposals ?

Michael Rana: Great. Thank you. Jerry, you mentioned you have six proposals out on One Uptown that totals around 100,000 sq ft. Do you have any sense on the probability of those getting done and any potential timing that you could provide on those proposals? If those were to get done, that could bring lease percentage up to over 90%. Just want to get your thoughts there.

Upal Rana: Great. Thank you. Jerry, you mentioned you have six proposals out on One Uptown that totals around 100,000 sq ft. Do you have any sense on the probability of those getting done and any potential timing that you could provide on those proposals? If those were to get done, that could bring lease percentage up to over 90%. Just want to get your thoughts there.

Speaker #6: You know , if those were to get done , that could bring lease percentage up to over 90% . So just want to get your thoughts there

Speaker #1: Yeah . Well , we certainly feel optimistic . And I think we're pragmatic in assessing that . So our hope is that we get at least half of those across the finish line .

Gerard H. Sweeney: Yeah. Well, we certainly feel optimistic. I think we're pragmatic in assessing that. Our hope is that we get at least half of those across the finish line and do another full floor at Uptown. As we talked about on previous calls, our anchor tenant has a call right on one of the remaining floors that is exercisable later this year. We're tracking that very carefully. Then on the other floor, given the success we had on doing spec suites in that building, we're also building out another floor as well. I think we've got all the mechanics in place supported by the pipeline to show continued occupancy gains in that property quarter over quarter.

Jerry Sweeney: Yeah. Well, we certainly feel optimistic. I think we're pragmatic in assessing that. Our hope is that we get at least half of those across the finish line and do another full floor at Uptown. As we talked about on previous calls, our anchor tenant has a call right on one of the remaining floors that is exercisable later this year. We're tracking that very carefully. Then on the other floor, given the success we had on doing spec suites in that building, we're also building out another floor as well. I think we've got all the mechanics in place supported by the pipeline to show continued occupancy gains in that property quarter over quarter.

Speaker #1: And do another full floor at uptown . As we as we we talked about on previous calls , we have , you know , our anchor tenant has a call right on one of the remaining floors that is exercisable later this year .

Speaker #1: So we're tracking that very carefully . And then on the the other floor , we're also given the success we had on doing spec suites in that building .

Speaker #1: We're also building out another floor as well . So I think we've got all the mechanics in place supported by the pipeline to show continued occupancy gains in that property .

Speaker #1: Quarter over quarter .

Speaker #6: Okay , great . That was helpful . And then , you know , I appreciate your comments on the recapitalization of one uptown and Insularis , in your prepared remarks , but could you expand a little more on that and how demand has has been there and anything that's shifted from what you had originally anticipated , from earlier this year

Michael Rana: Okay, great. That was helpful. I appreciate the comments on the recapitalization of One Uptown and Solaris in your prepared remarks. Could you expand a little more on that and how demand has been there and anything that's shifted from what you had originally anticipated from earlier this year?

Upal Rana: Okay, great. That was helpful. I appreciate the comments on the recapitalization of One Uptown and Solaris in your prepared remarks. Could you expand a little more on that and how demand has been there and anything that's shifted from what you had originally anticipated from earlier this year?

Speaker #1: Yeah . Happy to . And I'll start with Solaris , the residential project . I mean , there we really achieved a significant acceleration of lease up in light of the fact that that apartment market demand drivers and supply imbalance was , was fairly weak .

Gerard H. Sweeney: Yeah. Happy to. I'll start with Solaris, the residential project. There we really achieved a significant acceleration of lease up, in light of the fact that that apartment market demand drivers and supply imbalance was fairly weak. Our approach was to accelerate people taking occupancy. To do that, we actually provided some significant concessions to get that done. The initial year one overall rental levels were below our target. Now we're heavily into the renewal season, and we're getting about a 16% uptick across the board on our renewals. That has been a very positive indicator on future NOI growth. The retention rate has been fairly positive as well. With those data points, we've already started the process of talking to a number of high quality institutional investors about recapitalizing that project with us. Feedback there has been very supportive.

Jerry Sweeney: Yeah. Happy to. I'll start with Solaris, the residential project. There we really achieved a significant acceleration of lease up, in light of the fact that that apartment market demand drivers and supply imbalance was fairly weak. Our approach was to accelerate people taking occupancy. To do that, we actually provided some significant concessions to get that done. The initial year one overall rental levels were below our target. Now we're heavily into the renewal season, and we're getting about a 16% uptick across the board on our renewals. That has been a very positive indicator on future NOI growth. The retention rate has been fairly positive as well. With those data points, we've already started the process of talking to a number of high quality institutional investors about recapitalizing that project with us. Feedback there has been very supportive.

Speaker #1: So our approach was to accelerate people taking occupancy . And to do that , we actually provided some significant concessions to get that done .

Speaker #1: So the initial year-one overall rental levels were below our target. So now, we're heavily into the renewal season, and we're getting about a 16% uptick across the board on our renewals.

Speaker #1: So that has been a very positive indicator on future NOI growth, and the retention rate has been fairly positive as well. So with those data points, we've already started the process of talking to a number of high-quality institutional investors about recapitalizing.

Speaker #1: That project with us. So, feedback there has been very supportive, and certainly, we expect to get that recap done sometime in the third quarter per our plan.

Gerard H. Sweeney: Certainly, we expect to get that recap done sometime in Q3 per our plan. Maybe even a little bit earlier, but that's kind of the plan at this point. One Uptown, look, we continue to get a lot of good activity in institutions that want to partner that project with us. From our perspective, though, and Tom touched on this, we want to get a couple of additional leases done because that's really the value creation proposition for us. We have no concerns at all about the ability for us to execute on the recap on either Solaris House or One Uptown, given the feedback we've gotten thus far. Frankly, on One Uptown, given the pipeline we have to get that project closer to the 80% to 90% lease range. Hopefully, that answers your question.

Jerry Sweeney: Certainly, we expect to get that recap done sometime in Q3 per our plan. Maybe even a little bit earlier, but that's kind of the plan at this point. One Uptown, look, we continue to get a lot of good activity in institutions that want to partner that project with us. From our perspective, though, and Tom touched on this, we want to get a couple of additional leases done because that's really the value creation proposition for us. We have no concerns at all about the ability for us to execute on the recap on either Solaris House or One Uptown, given the feedback we've gotten thus far. Frankly, on One Uptown, given the pipeline we have to get that project closer to the 80% to 90% lease range. Hopefully, that answers your question.

Speaker #1: Maybe , maybe , maybe even a little bit earlier . But that's kind of the plan at this point . One uptown look , we continue to get a lot of good activity in in institutions that want to partner that project with us .

Speaker #1: From our perspective, though, and Tom touched on this, you know, we want to get a couple of additional leases done because that's really the value creation proposition for us.

Speaker #1: So we have no concerns at all about the ability for us to execute on the recap on either Solaris House or one uptown , given the feedback we've gotten thus far and frankly , on a one uptown , given the pipeline , we have to get that project closer to the 80 to 90% lease range .

Speaker #1: Hopefully that answers your question .

Speaker #6: Yeah, that was great. Thank you so much.

Michael Rana: Yeah, that was great. Thank you so much.

Upal Rana: Yeah, that was great. Thank you so much.

Speaker #1: Thank you .

Gerard H. Sweeney: Thank you.

Jerry Sweeney: Thank you.

Speaker #4: Thank you . And I show no further questions in the queue at this time . I will turn the call back to Jerry for closing remarks .

Operator: Thank you. I show no further questions in the queue at this time. I will turn the call back to Jerry for closing remarks.

Speaker #1: Great . Well , Michel , thank you for your help today . And to all of you . Thank you very much for participating in our first quarter call .

Gerard H. Sweeney: Great. Well, Michelle, thank you for your help today. To all of you, thank you very much for participating in our Q1 call, and we look forward to providing a further update on our business plan progress during the Q2 call. Thank you very much and have a great day.

Jerry Sweeney: Great. Well, Michelle, thank you for your help today. To all of you, thank you very much for participating in our Q1 call, and we look forward to providing a further update on our business plan progress during the Q2 call. Thank you very much and have a great day.

Speaker #1: And we look forward to providing a further update on our business plan progress during the second quarter call . Thank you very much and have a great day .

Operator: This concludes today's conference call. Thank you for participating and you may now disconnect.

Q1 2026 Brandywine Realty Trust Earnings Call

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