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What changed in BRANDYWINE REALTY TRUST's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of BRANDYWINE REALTY TRUST's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+210 added−197 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-27)

Top changes in BRANDYWINE REALTY TRUST's 2025 10-K

210 paragraphs added · 197 removed · 168 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

14 edited+0 added−4 removed45 unchanged
Biggest changeOperational Strategy We currently expect to continue to operate in markets where we have a concentration advantage due to economies of scale. We believe that where possible, it is best to operate with a strong base of properties in order to benefit from the personnel 7 allocation and the market strength associated with managing multiple properties in the same market.
Biggest changeWe believe that where possible, it is best to operate with a strong base of properties in order to benefit from the personnel allocation and the market strength associated with managing multiple properties in the same market. We also intend to selectively dispose of properties and redeploy capital if we determine a property cannot meet our long-term earnings growth expectations.
We seek to maintain a challenging, enriching, respectful, diverse, inclusive, collaborative and rewarding work environment for 9 our employees whom we consider to be among our most valuable assets.
We seek to maintain a challenging, enriching, respectful, inclusive, collaborative and rewarding work environment for our employees whom we 9 consider to be among our most valuable assets.
Business Segments See Note 18 “Segment Information , ” to our Consolidated Financial Statements for information on results of operations of our reportable segments for the years ended December 31, 2024, 2023, and 2022 and balance sheet amounts as of December 31, 2024 and 2023.
Business Segments See Note 18 “Segment Information , ” to our Consolidated Financial Statements for information on results of operations of our reportable segments for the years ended December 31, 2025, 2024, and 2023 and balance sheet amounts as of December 31, 2025 and 2024.
In addition to our four geographic markets, our corporate group is responsible for cash and investment management, development/redevelopment of certain real estate properties during the construction period, and certain other general support functions. See Note 1 “Organization of the Parent Company and the Operating Partnership,” to our Consolidated Financial Statements for our property portfolio, management services and land holdings.
In addition to our four segments, our corporate group is responsible for cash and investment management, development/redevelopment of certain real estate properties during the construction period, and certain other general support functions. See Note 1 “Organization of the Parent Company and the Operating Partnership,” to our Consolidated Financial Statements for our property portfolio, management services and land holdings.
During the twelve months ended December 31, 2024, we owned and managed properties within four markets: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas, and (4) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania.
During the twelve months ended December 31, 2025, we owned and managed properties within four segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas, and (4) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania.
We expect to concentrate our real estate activities in markets where we believe that: • current and projected market rents and absorption statistics justify construction activity; • we can maximize market penetration by accumulating a critical mass of properties and thereby enhance operating efficiencies; • barriers to entry (such as zoning restrictions, utility availability, infrastructure limitations, development moratoriums and limited developable land) will create supply constraints on available space; and • there is potential for economic growth, particularly job growth and industry diversification.
We expect to concentrate our real estate activities in markets where we believe that: • current and projected market rents and absorption statistics justify construction activity; • we can maximize market penetration by accumulating a critical mass of properties and thereby enhance operating efficiencies; • barriers to entry (such as zoning restrictions, utility availability, infrastructure limitations, development moratoriums and limited developable land) will create supply constraints on available space; and • there is potential for economic growth, particularly job growth and industry diversification. 7 Operational Strategy We currently expect to continue to operate in markets where we have a concentration advantage due to economies of scale.
We have implemented a training program for employees that includes both proactive education modules, as well as reactive anti-phishing and testing modules designed to test the end-user’s ability to put what they have learned into practice. Human Capital Resources As of December 31, 2024, we had approximately 285 full-time employees and five part-time employees and one intern.
We have implemented a training program for employees that includes both proactive education modules, as well as reactive anti-phishing and testing modules designed to test the end-user’s ability to put what they have learned into practice. Human Capital Resources As of December 31, 2025, we had approximately 268 full-time employees and ten part-time employees.
As part of our remediation activities, we strengthened our surveillance of cybersecurity threats and our information backup systems. The Audit Committee of our Board (the “Audit Committee”) receives and reviews periodic reports on cybersecurity matters from our Chief Technology and Innovation Officer, including reports on documented incidents or violations of our IT and security policies.
The Audit Committee of our Board (the “Audit Committee”) receives and reviews periodic reports on cybersecurity matters from our Chief Technology and Innovation Officer, including reports on documented incidents or violations of our IT and security policies.
We maintain policies and programs that we believe reflect our continued commitment to our employees, including: • a competitive compensation program and benefits package; • operational protocols which prioritize employee health, safety and well-being; • promotion of diversity and inclusion in our hiring practices; ◦ In 2024, approximately 46% of all new hires were females and approximately 46% of all new hires were ethnic minorities. • training and career development opportunities and a tuition reimbursement program; and • regular assessment of the engagement, satisfaction and retention of our employees.
We maintain policies and programs that we believe reflect our continued commitment to our employees, including: • a competitive compensation program and benefits package; • operational protocols which prioritize employee health, safety and well-being; • training and career development opportunities and a tuition reimbursement program; and • regular assessment of the engagement, satisfaction and retention of our employees.
Our broader strategy remains focused on continuing to grow earnings, enhance liquidity and strengthen our balance sheet through debt reduction, targeted sales activity and management of our existing and prospective liabilities.
We believe that recycling capital is an important aspect of maintaining the overall quality of our portfolio. Our broader strategy remains focused on continuing to grow earnings, enhance liquidity and strengthen our balance sheet through debt reduction, targeted sales activity and management of our existing and prospective liabilities.
The information contained on our website is not incorporated by reference into this Annual Report.
For further information regarding our environmental, social, and governance strategies and policies, please visit the “Responsibility” section of our website. The information contained on our website is not incorporated by reference into this Annual Report. 10
In 2024, we received our tenth annual Global Real Estate Sustainability Benchmark (“GRESB”) Green Star ranking. We achieved Green Lease Leaders Platinum recognition in the category’s inaugural year, recognizing our collaboration with tenants to equitably align financial and environmental benefits. We remain committed to energy efficiency in our buildings.
We achieved Green Lease Leaders Platinum recognition in the category’s inaugural year, recognizing our collaboration with tenants to equitably align financial and environmental benefits and renewed this certification in 2025 for an additional three years. We remain committed to energy efficiency throughout our portfolio. We remain committed to supporting our employees and the communities where we operate.
Environmental, Social, and Corporate Governance We are committed to to implementing and maintaining environmental, social, and governance (“ESG”) standards while driving value through continual improvement of our operations, portfolio performance, and community impact. Our reduction targets for energy, greenhouse gas emissions and water aim to reduce consumption by 15% compared to our 2018 baseline by 2025.
Sustainability, Social Responsibility and Corporate Governance We are committed to implementing and maintaining sustainability, social responsibility, and corporate governance standards while driving value through continual improvement of our operations, portfolio performance, and community impact. In 2025, we received our eleventh annual Global Real Estate Sustainability Benchmark (“GRESB”) Green Star ranking.
Brandywine maintains and encourages the use of over 74 acres of green space for community engagement including a focus on biodiversity through our onsite, honey generating, beekeeping habitats. For further information regarding our environmental, social, and governance strategies and policies, please visit the “Responsibility” section of our website.
We promote meritocracy through employee engagement. Employees are given access to mentorship and tuition reimbursement opportunities as well as numerous programs to promote health and wellness. Brandywine maintains and encourages the use of over 74 acres of green space for community engagement including a focus on biodiversity through our onsite, honey generating, beekeeping habitats and on-site micro farms.
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We also intend to selectively dispose of properties and redeploy capital if we determine a property cannot meet our long-term earnings growth expectations. We believe that recycling capital is an important aspect of maintaining the overall quality of our portfolio.
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As we previously disclosed, in April 2024, we detected unauthorized occurrences by a third party on portions of our information technology systems. Upon detecting the unauthorized occurrences, we promptly initiated our previously established response protocols and took steps to contain and remediate the incident.
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We have reached the following levels as of December 31, 2024: a 35% like-for-like intensity use reduction from baseline for energy, a 29% like-for-like intensity use reduction from baseline for water and a 43% like-for-like intensity use reduction from baseline for greenhouse gas emissions, thus achieving our reduction targets a year early.
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We remain committed to supporting our employees and the communities where we operate. We promote diversity, equity, and inclusion through board diversity and employee engagement. Employees are given access to mentorship and tuition reimbursement opportunities as well as numerous programs to promote health and wellness.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

46 edited+18 added−3 removed174 unchanged
Biggest changeOur financial performance and the value of our real estate assets, and consequently the value of our securities, are subject to the risk that if our properties do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, our cash flow, results of operations, financial condition and ability to make distributions to our security holders will be adversely affected. 10 The following factors, among others, may materially and adversely affect the income generated by our properties and our performance generally: • adverse changes in international, national or local economic and demographic conditions; • increased vacancies or our inability to rent space on favorable terms, including market pressures to offer tenants rent abatements, increased tenant improvement packages, early termination rights, below market rental rates or below-market renewal options; • significant job losses in the financial and professional services industries may occur, which may decrease demand for office space, causing market rental rates and property values to be negatively impacted; • changes in space utilization by our tenants due to technology, economic conditions, impact of pandemics, and business culture may decrease demand for office space, causing market rental rates and property values to be negatively impacted; • deterioration in the financial condition of our tenants may result in tenant defaults under leases, including due to bankruptcy, and adversely impact our ability to collect rents from our tenants; • competition from other office and mixed-use properties, and increased supply of such properties; • increases in non-discretionary operating costs, including insurance expense, utilities, real estate taxes, state and local taxes, labor shortages and heightened security costs may not be offset by increased market rental rates; • increases in operating costs due to inflation may not be offset by increased market rental rates; • reduced values of our properties would limit our ability to dispose of assets at attractive prices, limit our access to debt financing secured by our properties and reduce the availability of unsecured loans; • increases in interest rates, reduced availability of financing and reduced liquidity in the capital markets may adversely affect our ability or the ability of potential buyers of properties and tenants of properties to obtain financing on favorable terms, or at all; • one or more lenders under our unsecured credit facility could refuse or be unable to fund their financing commitment to us and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all; and • civil disturbances, earthquakes and other natural disasters, or terrorist acts or acts of war may result in uninsured or underinsured losses.
Biggest changeThe following factors, among others, may materially and adversely affect the income generated by our properties and our performance generally: • adverse changes in international, national or local economic and demographic conditions, which may result, from among other things, government policies and regulations, tariffs, market dynamics, rising interest rates, inflation, international trade disputes, government shutdowns and geopolitical conflicts; • increased vacancies or our inability to rent space on favorable terms, including market pressures to offer tenants rent abatements, increased tenant improvement packages, early termination rights, below market rental rates or below-market renewal options; • significant job losses in the financial and professional services industries may occur, which may decrease demand for office space, causing market rental rates and property values to be negatively impacted; • changes in space utilization by our tenants due to technology, economic conditions, impact of pandemics, and business culture may decrease demand for office space, causing market rental rates and property values to be negatively impacted; • deterioration in the financial condition of our tenants may result in tenant defaults under leases, including due to bankruptcy, and adversely impact our ability to collect rents from our tenants; • competition from other office and mixed-use properties, and increased supply of such properties; • increases in non-discretionary operating costs, including insurance expense, utilities, real estate taxes, state and local taxes, labor shortages and heightened security costs may not be offset by increased market rental rates; • increases in operating costs due to inflation may not be offset by increased market rental rates; • reduced values of our properties would limit our ability to dispose of assets at attractive prices, limit our access to debt financing secured by our properties and reduce the availability of unsecured loans; • increases in interest rates, reduced availability of financing and reduced liquidity in the capital markets may adversely affect our ability or the ability of potential buyers of properties and tenants of properties to obtain financing on favorable terms, or at all; • one or more lenders under our unsecured credit facility could refuse or be unable to fund their financing commitment to us and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all; and • civil disturbances, earthquakes and other natural disasters, or terrorist acts or acts of war may result in uninsured or underinsured losses. 11 Our performance is dependent upon the economic conditions of the markets in which our properties are located.
While we carry general liability and umbrella policies to mitigate such losses on our general liability risks, our results could be materially impacted by claims and other expenses related to such insurance plans if future occurrences and claims differ from these assumptions and historical trends or if employee health-care claims which we self-insure up to a set limit per employee (and which are insured above such self-insured retention amount) exceed our expectations or historical trends.
While we carry general liability and umbrella policies to mitigate such losses on our general liability risks, our results could be materially impacted by claims and other expenses related to such insurance plans if future 24 occurrences and claims differ from these assumptions and historical trends or if employee health-care claims which we self-insure up to a set limit per employee (and which are insured above such self-insured retention amount) exceed our expectations or historical trends.
Sweeney, Wirth, DeVuono, Redd and Johnstone are important to our success is that each has a favorable reputation, which attracts business and investment opportunities and assists us in negotiations with lenders, unconsolidated real estate venture partners and other investors. If we lost their services, our relationships with lenders, potential tenants and industry personnel could be affected.
Sweeney, Wirth, DeVuono and Redd are important to our success is that each has a favorable reputation, which attracts business and investment opportunities and assists us in negotiations with lenders, unconsolidated real estate venture partners and other investors. If we lost their services, our relationships with lenders, potential tenants and industry personnel could be affected.
In addition, an increase in interest rates could decrease the 21 amounts third parties are willing or able to pay for our assets, thereby limiting our ability to recycle capital and change our portfolio promptly in response to changes in economic or other conditions. For more information about our interest costs on variable rate debt see Part II, Item 7.
In addition, an increase in interest rates could decrease the amounts third parties are willing or able to pay for our assets, thereby limiting our ability to recycle capital and change our portfolio promptly in response to changes in economic or other conditions. For more information about our interest costs on variable rate debt see Part II, Item 7.
These agreements may hinder actions that we may otherwise desire to take to repay or refinance guaranteed indebtedness because we would be required to make payments to the beneficiaries of such agreements if we violate these agreements. 15 Our property taxes could increase due to property tax rate changes or reassessment, which would adversely impact our cash flows.
These agreements may hinder actions that we may otherwise desire to take to repay or refinance guaranteed indebtedness because we would be required to make payments to the beneficiaries of such agreements if we violate these agreements. Our property taxes could increase due to property tax rate changes or reassessment, which would adversely impact our cash flows.
Unknown liabilities relating to acquired properties could include: • liabilities for clean-up of pre-existing disclosed or undisclosed environmental contamination; • claims by tenants, vendors, municipalities or other persons arising on account of actions or omissions of the former owners or occupants of the properties; and • liabilities incurred in the ordinary course of business.
Unknown liabilities relating to acquired properties could include: • liabilities for clean-up of pre-existing disclosed or undisclosed environmental contamination; 14 • claims by tenants, vendors, municipalities or other persons arising on account of actions or omissions of the former owners or occupants of the properties; and • liabilities incurred in the ordinary course of business.
Moreover, our venture partners may, at any time, have business, economic or other objectives that are inconsistent with our objectives, including objectives that relate to the appropriate timing and terms of any sale or refinancing of a property. In some instances, our venture partners may have competing interests in our markets that could create conflicts of 14 interest.
Moreover, our venture partners may, at any time, have business, economic or other objectives that are inconsistent with our objectives, including objectives that relate to the appropriate timing and terms of any sale or refinancing of a property. In some instances, our venture partners may have competing interests in our markets that could create conflicts of interest.
Additionally, changes in federal policy that affect the geopolitical landscape, such as the imposition of tariffs and changes to U.S. trade policy, have, and could in the future, lead to adverse effects on the U.S. domestic economy and our business operations. Some potential losses are not covered by insurance.
Additionally, changes in federal policy that affect the geopolitical landscape, such as the imposition of tariffs and changes to U.S. trade and foreign policy, have, and could in the future, lead to adverse effects on the U.S. domestic economy and our business operations. Some potential losses are not covered by insurance.
Security 23 breaches or disruptions, mainly through cyber-attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, have generally increased in number, intensity and sophistication. Notwithstanding the security measures undertaken, our information technology has been, and may in the future be, vulnerable to attacks or breaches.
Security breaches or disruptions, mainly through cyber-attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, have generally increased in number, intensity and sophistication. Notwithstanding the security measures undertaken, our information technology has been, and may in the future be, vulnerable to attacks or breaches.
The capitalization rates at which properties may be sold could be higher than historical rates, thereby reducing our potential proceeds from sale. Consequently, we may not be able to alter our portfolio promptly in response to changes in economic or other conditions.
The capitalization rates at which properties may be sold could be higher than historical rates, thereby 15 reducing our potential proceeds from sale. Consequently, we may not be able to alter our portfolio promptly in response to changes in economic or other conditions.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors that May Influence Future Results of Operations - Development Risk.” 12 Our development projects and third party property management business may subject us to certain liabilities.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors that May Influence Future Results of Operations - Development Risk.” Our development projects and third party property management business may subject us to certain liabilities.
Certain of these matters are beyond our control and any adverse changes could have a material adverse effect on our cash flow and our ability to make distributions to shareholders. 20 We face possible federal, state and local tax audits.
Certain of these matters are beyond our control and any adverse changes could have a material adverse effect on our cash flow and our ability to make distributions to shareholders. We face possible federal, state and local tax audits.
Changes in federal policy, including tax policies, and at regulatory agencies occur over time through policy and personnel changes following elections, which can lead to changes involving the level of oversight and focus on certain industries and corporate entities.
Changes in federal policy, including tax policies, and at regulatory agencies occur over time through policy and personnel changes, particularly following elections, which can lead to changes involving the level of oversight and focus on certain industries and corporate entities.
In addition, failure of one or more third parties with whom we partner to fulfill obligations to us could result in delays and increased costs to us associated with finding a suitable replacement partner.
In addition, failure of one or more third parties with whom we partner to fulfill obligations to us could result in delays and increased costs to us associated with finding a 13 suitable replacement partner.
We and our shareholders could be adversely affected by any such change in, or any new, federal income tax law, regulation or administrative interpretation. 18 If a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable, or if we are unable to identify and complete the acquisition of suitable replacement property to effect a Section 1031 Exchange, we may face adverse consequences.
We and our shareholders could be adversely affected by any such change in, or any new, federal income tax law, regulation or administrative interpretation. 19 If a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable, or if we are unable to identify and complete the acquisition of suitable replacement property to effect a Section 1031 Exchange, we may face adverse consequences.
In addition, changes to existing requirements or enactments of new requirements could require significant expenditures. Such costs may adversely affect our cash flow and ability to make distributions to shareholders. 16 REIT Risk Factors Failure to qualify as a REIT would subject us to U.S. federal income tax which would reduce the cash available for distribution to our shareholders.
In addition, changes to existing requirements or enactments of new requirements could require significant expenditures. Such costs may adversely affect our cash flow and ability to make distributions to shareholders. 17 REIT Risk Factors Failure to qualify as a REIT would subject us to U.S. federal income tax which would reduce the cash available for distribution to our shareholders.
In that case, it is possible that we would fail certain of the asset tests applicable to REITs, in which event we would fail to qualify as a REIT unless we could avail ourselves of certain relief provisions. 17 To maintain our REIT status, we may be forced to borrow funds on a short-term basis during unfavorable market conditions.
In that case, it is possible that we would fail certain of the asset tests applicable to REITs, in which event we would fail to qualify as a REIT unless we could avail ourselves of certain relief provisions. 18 To maintain our REIT status, we may be forced to borrow funds on a short-term basis during unfavorable market conditions.
This bylaw provision limits the ability of shareholders to make nominations of persons for election as trustees or to introduce other proposals unless we are notified in a timely manner prior to the meeting. 19 Disaster Risk Factors A pandemic, epidemic or outbreak of a contagious disease could adversely affect us.
This bylaw provision limits the ability of shareholders to make nominations of persons for election as trustees or to introduce other proposals unless we are notified in a timely manner prior to the meeting. 20 Disaster Risk Factors A pandemic, epidemic or outbreak of a contagious disease could adversely affect us.
To the extent climate change causes variations in weather patterns, our markets could experience increases in storm intensity and rising sea-levels. Over time, these conditions could result in declining demand for office space in our buildings or our inability to operate the buildings at all.
To the extent climate change causes variations in weather patterns, our markets could experience increases in storm intensity, severe winter weather and rising sea-levels. Over time, these conditions could result in declining demand for office space in our buildings or our inability to operate the buildings at all.
Our ability to make distributions in the future will depend upon: • the operational and financial performance of our properties; • capital expenditures with respect to existing, developed and newly acquired properties; • the amount of, and the interest rates on, our debt; • capital needs of our unconsolidated real estate ventures; • general and administrative costs associated with our operation as a publicly-held REIT; and • the absence of significant expenditures relating to environmental and other regulatory matters.
Our ability to make distributions in the future will depend upon, among other things: • the operational and financial performance of our properties; • capital expenditures with respect to existing, developed and newly acquired properties; • the amount of, and the interest rates on, our debt; • capital needs of our unconsolidated real estate ventures; • general and administrative costs associated with our operation as a publicly-held REIT; and 21 • the absence of significant expenditures relating to environmental and other regulatory matters.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates – Impairment.” See also Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Comparison of Year Ended December 31, 2024 to the Year Ended December 31, 2023 – Provision for Impairment.” 11 We may suffer adverse consequences due to the financial difficulties, bankruptcy or insolvency of our tenants.
See Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies and Estimates – Impairment.” See also Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations – Comparison of Year Ended December 31, 2025 to the Year Ended December 31, 2024 – Provision for Impairment.” We may suffer adverse consequences due to the financial difficulties, bankruptcy or insolvency of our tenants.
Our business may be adversely affected by social, political and economic instability, unrest or disruption, including legal, regulatory and policy changes by a new presidential administration in the U.S., protests, demonstrations, strikes, riots, civil disturbance, disobedience, insurrection, or social and other political unrest.
Our business may be adversely affected by social, political and economic instability, unrest or disruption, including legal, regulatory and policy changes by Congress or the presidential administration in the U.S., protests, demonstrations, strikes, riots, civil disturbance, disobedience, insurrection, or social and other political unrest.
Sweeney - President and Chief Executive Officer, Thomas Wirth - Executive Vice President and Chief Financial Officer, Jeffrey DeVuono - Executive Vice President and Senior Managing Director, William Redd – Executive Vice President and Senior Managing Director and George Johnstone - Executive Vice President, Operations. Among the reasons that Messrs.
Sweeney - President and Chief Executive Officer, Thomas Wirth - Executive Vice President and Chief Financial Officer, Jeffrey DeVuono - Executive Vice President and Senior Managing Director, and William Redd – Executive Vice President and Senior Managing Director. Among the reasons that Messrs.
Such events may result in restrictions, curfews or other actions and give rise to significant changes in regional and global economic conditions and cycles, which may adversely affect our financial condition and operations.
Such events have in the past, and may in the future, result in restrictions, curfews or other actions and give rise to significant changes in regional and global economic conditions and cycles, which may adversely affect our financial condition and operations.
We review and assess the cybersecurity controls of our third-party service providers and vendors, as appropriate, and make changes to our business processes to manage these risks. Data breaches and/or the insolvency of such third parties and vendors may result in us incurring costs and may have other negative consequences. Item 1B. Unresolved Staff Comments None.
We review and assess the cybersecurity controls of our third-party service providers and vendors, as appropriate, and make changes to our business processes to manage these risks. Data breaches and/or the insolvency of such third parties and vendors may result in us incurring costs and may have other negative consequences.
If we decide not to sell or participate in a real estate venture and instead hire a third party manager, we would be dependent on their key personnel to provide services on our behalf and we may not find a suitable replacement if the management agreement is terminated, or if key personnel leave or otherwise become unavailable to us. 13 We face risks associated with property acquisitions.
If we decide not to sell or participate in a real estate venture and instead hire a third party manager, we would be dependent on their key personnel to provide services on our behalf and we may not find a suitable replacement if the management agreement is terminated, or if key personnel leave or otherwise become unavailable to us.
The success of such transactions is subject to a number of factors, including the risks that: • we may not be able to obtain financing for such acquisitions on favorable terms; • acquired properties may fail to perform as expected; • even if we enter into an acquisition agreement for a property, we may be unable to complete that acquisition after making a non-refundable deposit and incurring certain other acquisition-related costs; • the actual costs of repositioning, redeveloping or maintaining acquired properties may be higher than our estimates; • the acquired properties may be located in new markets where we may have limited knowledge and understanding of the local economy, an absence of business relationships in the area or unfamiliarity with local governmental and permitting procedures; and • we may not be able to efficiently integrate acquired properties, particularly portfolios of properties, into our organization and manage new properties in a way that allows us to realize anticipated cost savings and synergies.
The success of such transactions is subject to a number of factors, including the risks that: • we may not be able to acquire a desired property because of competition from other potential acquirers with significant capital, and even if we are able to acquire a desired property, such potential acquirers may significantly increase the purchase price or result in other less favorable terms; • we may not be able to obtain financing for such acquisitions on favorable terms or at all; • acquired properties may fail to perform as expected; • even if we enter into an acquisition agreement for a property, we may be unable to complete that acquisition after making a non-refundable deposit and incurring certain other acquisition-related costs; • the actual costs of repositioning, redeveloping or maintaining acquired properties may be higher than our estimates; • the acquired properties may be located in new markets where we may have limited knowledge and understanding of the local economy, an absence of business relationships in the area or unfamiliarity with local governmental and permitting procedures; and • we may not be able to efficiently integrate acquired properties, particularly portfolios of properties, into our organization and manage new properties in a way that allows us to realize anticipated cost savings and synergies.
We have acquired in the past and intend to continue to pursue the acquisition of properties, including large portfolios that would increase our size and potentially alter our capital structure.
We face risks associated with property acquisitions. We have acquired in the past and intend to continue to pursue the acquisition of properties, including large portfolios that would increase our size and potentially alter our capital structure.
During the year ended December 31, 2023, we recognized aggregate impairment charges of $168.8 million, $131.6 million of which related to our Real Estate Investments and $37.2 million of which related to our Investment in Unconsolidated Real Estate Ventures. If we are required to take additional impairment charges, our results of operations could be adversely impacted.
During the year ended December 31, 2024, we recognized aggregate impairment charges of $53.1 million, $44.7 million of which related to our Real Estate Investments and $8.4 million of which related to our Investment in Unconsolidated Real Estate Ventures. If we are required to take additional impairment charges, our results of operations could be adversely impacted.
During the year ended December 31, 2024, we recognized aggregate impairment charges of $53.1 million, $44.7 million of which related to our Real Estate Investments and $8.4 million of which related to our Investment in Unconsolidated Real Estate Ventures.
During the year ended December 31, 2025, we recognized aggregate impairment charges of $67.5 million, $63.4 million of which related to our Real Estate Investments and $4.1 million of which related to our Investment in Unconsolidated Real Estate Ventures.
Our investment in property development or redevelopment may be more costly or difficult to complete than we anticipate. We intend to continue to develop properties where market conditions warrant such investment. Once made, these investments may not produce results in accordance with our expectations.
We intend to continue to develop properties where market conditions warrant such investment. Once made, these investments may not produce results in accordance with our expectations.
If operating expenses increase, the availability of other comparable office space in our core geographic markets might limit our ability to increase rents; if operating expenses increase without a corresponding increase in revenues, our profitability could diminish and limit our ability to make distributions to shareholders.
If operating expenses increase, the availability of other comparable office space in our core geographic markets might limit our ability to increase rents; if operating expenses increase without a corresponding increase in revenues, our profitability could diminish and limit our ability to make distributions to shareholders. 12 Our investment in property development or redevelopment may be more costly or difficult to complete than we anticipate.
In the event that our unsecured debt is downgraded by Moody’s Investor Services or Standard & Poor’s from the current ratings, we would likely incur higher borrowing costs and the market prices of our common shares and debt securities might decline.
In the event that our unsecured debt is downgraded by Moody’s Investor Services or Standard & Poor’s from the current ratings, we would likely incur higher borrowing costs and the market prices of our common shares and debt securities might decline. 23 Terrorist attacks and other acts of violence or war may adversely impact our performance and may affect the markets on which our securities are traded.
We cannot assure you that these requirements will not change or that newly imposed conditions will not require significant expenditures in order to be compliant. Potential liability for environmental contamination could result in substantial costs.
Moreover, the costs to comply with any new or different regulations could adversely affect our cash flow and our ability to make distributions to shareholders. We cannot assure you that these requirements will not change or that newly imposed conditions will not require significant expenditures in order to be compliant. Potential liability for environmental contamination could result in substantial costs.
We are dependent on our other executive officers for strategic business direction and real estate experience. Loss of their services could adversely affect our operations. Our ability to make distributions is subject to various risks. Historically, we have paid quarterly distributions to our shareholders.
Loss of their services could adversely affect our operations. Our ability to make distributions is subject to various risks. Historically, we have paid quarterly distributions to our shareholders.
Because increases in income and service taxes are generally not passed through to tenants under leases, such increases may adversely affect our cash flow and ability to make expected distributions to shareholders. Our properties are also subject to various regulatory requirements, such as those relating to the environment, fire and safety.
Regulatory Risk Factors Changes in tax rates and regulatory requirements may adversely affect our cash flow and results of operations. Because increases in income and service taxes are generally not passed through to tenants under leases, such increases may adversely affect our cash flow and ability to make expected distributions to shareholders.
Attacks or armed conflicts could result in increased operating costs; for example, it might cost more in the future for building security, property and casualty insurance, and property maintenance. As a result of terrorist activities and other market conditions, the cost of insurance coverage for our properties could also increase.
Terrorist attacks against our properties, or against the United States or our interests, may negatively impact our operations and the value of our securities. Attacks or armed conflicts could result in increased operating costs; for example, it might cost more in the future for building security, property and casualty insurance, and property maintenance.
Any adverse changes in economic conditions in any of these economies or real estate markets could negatively affect cash available for distribution and debt service. Our financial performance and ability to make distributions to our shareholders and pay debt service is particularly sensitive to the economic conditions in these markets.
Our financial performance and ability to make distributions to our shareholders and pay debt service is particularly sensitive to the economic conditions in these markets.
Our performance is dependent upon the economic conditions of the markets in which our properties are located. Our results of operations will be significantly influenced by the economies and other conditions of the real estate markets in which we operate, particularly in Philadelphia, Pennsylvania, the suburbs of Philadelphia, Pennsylvania, and Austin, Texas.
Our results of operations will be significantly influenced by the economies and other conditions of the real estate markets in which we operate, particularly in Philadelphia, Pennsylvania, the suburbs of Philadelphia, Pennsylvania, and Austin, Texas. Any adverse changes in economic conditions in any of these economies or real estate markets could negatively affect cash available for distribution and debt service.
Our Board of Trustees also has the power to establish the preferences and rights of each class or series of units in the Operating Partnership, and may afford the holders in any series or class of preferred units preferences, distributions, powers and rights, voting or otherwise, senior to the rights of holders of common units.
Our Board of Trustees also has the power to establish the preferences and rights of each class or series of units in the Operating Partnership, and may afford the holders in any series or class of preferred units preferences, distributions, powers and rights, voting or otherwise, senior to the rights of holders of common units. 22 A continued increase in interest rates would further increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or sell assets on favorable terms or at all.
If the property taxes we pay increase, our cash flow would be adversely impacted, and our ability to pay any expected dividends to our stockholders and unitholders could be adversely affected. Regulatory Risk Factors Changes in tax rates and regulatory requirements may adversely affect our cash flow and results of operations.
If the property taxes we pay increase, our cash flow would be adversely impacted, and our ability to pay any expected dividends to our stockholders and unitholders could be adversely affected. The increased use of artificial intelligence (“AI ”) and automation may change the uses, space configurations and tenant requirements for certain of our properties in currently unforeseen ways.
Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy. Such adverse economic conditions could affect the ability of our tenants to pay rent and our cost of capital, which could have a negative impact on our results.
Such adverse economic conditions could affect the ability of our tenants to pay rent and our cost of capital, which could have a negative impact on our results. Social, political and economic changes or instability, or other circumstances beyond our control could affect our business operations.
In addition, our insurance policies may not recover all of our property replacement costs and lost revenue resulting from an attack. We might not be able to pass through the increased costs associated with such increased security measures and insurance to our tenants, 22 which could reduce our profitability and cash flow.
We might not be able to pass through the increased costs associated with such increased security measures and insurance to our tenants, which could reduce our profitability and cash flow. Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy.
From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts.
Rising interest rates could limit our ability to refinance existing debt when it matures or significantly increase our future interest expense. From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts.
Our failure to comply with these requirements could result in the imposition of fines and damage awards and could result in a default under some of our tenant leases. Moreover, the costs to comply with any new or different regulations could adversely affect our cash flow and our ability to make distributions to shareholders.
Our properties are also subject to various regulatory requirements, such as those relating to the environment, fire and safety. Our failure to comply with these requirements could result in the imposition of fines and damage awards and could result in a default under some of our tenant leases.
Some of these competitors may have significantly greater financial resources than we have.
Some of these competitors may have significantly greater financial resources than we have. Some of these competitors may be less sensitive to risks with respect to the creditworthiness of a tenant or the geographic concentration of their investments.
Removed
Interest rates have increased and could continue to increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or sell assets on favorable terms or at all. Rising interest rates could continue to increase our interest expense and could limit our ability to refinance existing debt when it matures.
Added
Our financial performance and the value of our real estate assets, and consequently the value of our securities, are subject to the risk that if our properties do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, our cash flow, results of operations, financial condition and ability to make distributions to our security holders will be adversely affected.
Removed
Terrorist attacks and other acts of violence or war may adversely impact our performance and may affect the markets on which our securities are traded. Terrorist attacks against our properties, or against the United States or our interests, may negatively impact our operations and the value of our securities.
Added
The realization of any of the above risks could significantly and adversely affect our ability to meet our financial expectations, our financial condition, results of operations, and cash flows, our ability to make distributions to our shareholders, the market price of our common stock, and our ability to satisfy our debt service obligations.
Removed
Social, political and economic changes or instability, or other circumstances beyond our control could affect our business operations.
Added
These entities also may have more favorable relationships and pricing with suppliers and contractors and may complete construction projects sooner and at lower costs than we are able.
Added
In recent years, companies in certain industries have integrated AI and other advanced technologies, such as robotics and advanced automation of recurring tasks, into their businesses. It is widely thought that most industries are in only the early stages of an advanced technology revolution that may have profound, and largely currently unknown, impacts on their businesses.
Added
It is currently unknown how the ongoing adoption of such advanced technologies and automation across industries will impact the optimal space configurations and infrastructure features, and we may face new tenant requirements and requests that will require significant expenditures that may not be entirely recoverable through increased rents.
Added
For example, the adoption of AI by our tenants may lead to infrastructure requirements that our buildings currently do not accommodate, such as increased power needs due to high-performance computing. Infrastructure upgrades may necessitate 16 substantial capital expenditures and could potentially impact the environmental footprint of our building operations.
Added
If technological developments result in a reduction or reconfiguration in space requirements by our tenants, demand by individual tenants and prospective tenants for space may decrease over time.
Added
If we are not able to offset any reduction in demand from the foregoing developments through repurposing space, property dispositions, or other means, the realization of any of the aforementioned risks could have a material adverse impact on our business, revenues and results of operations.
Added
We also rely on a limited number of vendors to provide key services, including, but not limited to, utilities, at certain of our properties.
Added
If, as a result of unanticipated events, including those resulting from climate change, these vendors fail to adequately provide key services, we may experience significant interruptions in service and disruptions to business operations at our properties, incur remediation costs, and become subject to claims and damage to our reputation.
Added
We are currently completing a transition of our Executive Vice President – Operations.
Added
Management transitions may create uncertainty and involve a diversion of resources and management attention, be disruptive to our daily operations or impact public or market perception, any of which could negatively impact our ability to operate effectively or execute strategies and result in a material adverse impact on our business, financial conditions and results of operations We are also dependent on our other executive officers for strategic business direction and real estate experience.
Added
As a result of terrorist activities and other market conditions, the cost of insurance coverage for our properties could also increase. In addition, our insurance policies may not recover all of our property replacement costs and lost revenue resulting from an attack.
Added
Failure of the U.S. federal government to manage its fiscal matters or to avoid a government shutdown may negatively impact the economic environment and adversely impact our results of operations.
Added
Congressional disagreement over the federal budget and the maximum amount of debt the federal government is permitted to have outstanding (commonly referred to as the “debt ceiling”), has previously caused the U.S. federal government to shut down for periods of time. A failure by the U.S.
Added
Congress to pass spending bills or address the debt ceiling at any point in the future would increase the risk of default by the U.S. on its obligations, the risk of a lowering of the U.S. federal government’s credit rating, and the risk of other economic dislocations.
Added
Such a failure, or the perceived risk of such a failure, could consequently have a material adverse effect on the financial markets and economic conditions in the U.S. and globally.
Added
If economic conditions severely deteriorate as a result of U.S. federal government fiscal gridlock, our operations, or those of our tenants, could be affected, which may adversely impact our financial condition and results of operations. These risks may also impact our overall liquidity, our borrowing costs, or the market price of our common stock. 25 Item 1B.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur information security processes are designed to manage material risks from cybersecurity threats to our information systems and maintain the confidentiality, integrity and availability of our data. 24 We have also implemented a training program for employees that includes both proactive education modules, as well as reactive anti-phishing and testing modules designed to test the end-user’s ability to put what they learned into practice.
Biggest changeWe have also implemented a training program for employees that includes both proactive education modules, as well as reactive anti-phishing and testing modules designed to test the end-user’s ability to put what they learned into practice. Engage Third-parties on Risk Management We engage external experts, including cybersecurity assessors and consultants, in evaluating and testing our risk management systems.
Governance and Oversight Management’s Role Managing Risk All Cybersecurity threats are reported to the Chief Technology and Innovation Officer (the “CTIO”), who promptly informs the General Counsel, Chief Financial Officer and other senior management officers of any cybersecurity incident or material cybersecurity threat.
Governance and Oversight Management’s Role Managing Risk 26 All Cybersecurity threats are reported to the Chief Technology and Innovation Officer (the “CTIO”), who promptly informs the General Counsel, Chief Financial Officer and other senior management officers of any cybersecurity incident or material cybersecurity threat.
Risk Factors” in this Form 10-K, including “We have experienced, and may again experience, data security breach that may cause damage to our business and reputation,” for additional discussion about cybersecurity-related risks.
Refer to “Item 1A. Risk Factors” in this Form 10-K, including “We have experienced, and may again experience, data security breach that may cause damage to our business and reputation,” for additional discussion about cybersecurity-related risks.
Risks from Cybersecurity Threats We have not experienced a cybersecurity threat or cybersecurity incident in the past three years that has materially adversely affected our results of operations or financial condition.
Risks from Cybersecurity Threats We have not experienced a cybersecurity threat or cybersecurity incident in the past three years that has materially adversely affected, or is reasonably likely to materially adversely affect, our results of operations or financial condition.
As we previously disclosed, on May 1, 2024, we detected unauthorized occurrences by a third party on portions of our information technology systems. Upon detecting the unauthorized occurrences, we promptly initiated our previously established response protocols and took steps to contain and remediate the incident.
On May 1, 2024, we detected unauthorized occurrences by a third party on portions of our information technology systems. Upon detecting the unauthorized occurrences, we promptly initiated our previously established response protocols and took steps to contain and remediate the incident. As part of our remediation activities, we strengthened our surveillance of cybersecurity threats and our information backup systems.
Engage Third-parties on Risk Management We engage external experts, including cybersecurity assessors and consultants, in evaluating and testing our risk management systems. These partnerships enable us to leverage specialized knowledge and insights, ensuring our cybersecurity strategies and processes remain consistent with industry best practices. These third-parties have performed threat assessments, and consultation on security enhancements and evolving best practices.
These partnerships enable us to leverage specialized knowledge and insights, ensuring our cybersecurity strategies and processes remain consistent with industry best practices. These third-parties have performed threat assessments, and provided consultation on security enhancements and evolving best practices.
The Audit Committee, comprised of board members with diverse experiences and expertise, is central to the Board’s oversight of management’s governance and management of cybersecurity risks and strategies. 25 At least once each quarter, the CTIO provides reports to the Audit Committee, which include reports on any documented incidents or violations of our IT and security policies and an update on cybersecurity practices and matters.
At least once each quarter, the CTIO provides reports to the Audit Committee, which include reports on any documented incidents or violations of our IT and security policies and an update on cybersecurity practices and matters.
Our management team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs.
Our management team works closely with our IT department to continuously evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. Our information security processes are designed to manage material risks from cybersecurity threats to our information systems and maintain the confidentiality, integrity and availability of our data.
As of the date of this Annual Report on Form 10-K, the cybersecurity incident has not had a material impact on our financial condition or results of operations, and we do not believe the cybersecurity incident is reasonably likely to materially impact our financial condition or results of operations. Refer to “Item 1A.
A substantial portion of our direct costs incurred relating to containing, investigating and remediating the cybersecurity incident were reimbursed through insurance recoveries. The cybersecurity incident has not had a material impact on our financial condition or results of operations, and we do not believe the cybersecurity incident is reasonably likely to materially impact our financial condition or results of operations.
Removed
As part of our remediation activities, we strengthened our surveillance of cybersecurity threats and our information backup systems. A substantial portion of our direct costs incurred relating to containing, investigating and remediating the cybersecurity incident were reimbursed through insurance recoveries.
Added
The Audit Committee, comprised of board members with diverse experiences and expertise, is central to the Board’s oversight of management’s governance and management of cybersecurity risks and strategies.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeFor more information about our geographic locations, see Note 18 “Segment Information” to our Consolidated Financial Statements: Location Number of Properties Net Rentable Square Feet (in thousands) Percentage Leased as of December 31, 2024 Leased Square Feet (in thousands) Total Base Rent (a) (in thousands) Percentage of Base Rent Philadelphia 11 4,726 95.3 % 4,502 $ 145,621 43.4 % Pennsylvania Suburbs 28 3,555 90.4 % 3,215 105,824 31.6 % Austin 16 2,185 77.8 % 1,700 47,561 14.2 % Other 8 1,464 88.1 % 1,290 36,031 10.8 % 63 11,930 89.7 % 10,707 $ 335,037 100.0 % (a) Represents base rents earned during the year, including tenant reimbursements, and excludes parking income, tenant inducements, and deferred market rent adjustments. 28 The following table shows the major tenants of the Core Properties as of December 31, 2024 and assumes that none of the tenants exercise renewal options or termination rights, if any, at or prior to scheduled expirations: Tenant Name Annualized Base Rents (a) (in thousands) Percentage of Aggregate Annualized Base Rents IBM, Inc. $ 20,630 4.9 % Spark Therapeutics 18,711 4.4 % Comcast Corporation 12,462 3.0 % FMC Corporation 12,034 2.8 % Troutman Pepper Hamilton Sanders LLP 10,473 2.5 % Lincoln National Management Co. 10,372 2.5 % Independence Blue Cross LLC 8,782 2.1 % The Trustees of the University of Pennsylvania 7,811 1.8 % CSL Behrinig, LLC 7,605 1.8 % T-Mobile Northeast, LLC 7,380 1.7 % Other 305,923 72.5 % $ 422,183 100.0 % (a) Represents the annualized base rent, including tenant reimbursements, for each lease in effect at December 31, 2024.
Biggest changeThe following table shows the major tenants of the Core Properties as of December 31, 2025 and assumes that none of the tenants exercise renewal options or termination rights, if any, at or prior to scheduled expirations: Tenant Name Annualized Base Rents (a) (in thousands) Percentage of Aggregate Annualized Base Rents IBM, Inc. $ 20,825 5.2 % Spark Therapeutics, Inc. 18,864 4.7 % Comcast Corporation 12,687 3.2 % FMC Corporation 12,149 3.0 % Troutman Pepper Locke LLP 10,722 2.7 % Lincoln National Management Co. 10,597 2.6 % Independence Blue Cross, LLC 9,172 2.3 % The Trustees of the University of Pennsylvania 8,139 2.0 % CSL Behring, LLC 7,841 2.0 % T-Mobile Northeast LLC 7,447 1.9 % Other 282,097 70.4 % $ 400,540 100.0 % (a) Represents the annualized base rent, including tenant reimbursements, for each lease in effect at December 31, 2025.
Tenant reimbursements generally include payment of a portion of real estate taxes, operating expenses, and common area maintenance and utility charges. The following table shows the geographic locations for the Core Properties as of December 31, 2024.
Tenant reimbursements generally include payment of a portion of real estate taxes, operating expenses, and common area maintenance and utility charges. 29 The following table shows the geographic locations for the Core Properties as of December 31, 2025.
Property Statistics The following table sets forth information with respect to our Core Properties at December 31, 2024: Net Rentable Square Feet % Occupied PHILADELPHIA CENTRAL BUSINESS DISTRICT SEGMENT Cira Center 730,187 89.1 % 1717 Arch Street 1,029,413 87.7 % 130 North 18th Street 595,041 99.5 % 100 North 18th Street 708,844 96.1 % 1900 Market Street 456,922 94.4 % 3020 Market Street 190,925 94.3 % 3000 Market Street 90,556 100.0 % 618 Market Street (a) 15,878 80.2 % FMC Tower at Cira Center South (a) 625,863 98.5 % The Bulletin Building (a) 282,709 95.3 % 2930 Chestnut Street (a) 9,788 100.0 % PHILADELPHIA CENTRAL BUSINESS DISTRICT SEGMENT SUBTOTAL 4,736,126 93.7 % PENNSYLVANIA SUBURBS SEGMENT Six Tower Bridge 116,174 76.2 % 426 West Lancaster Avenue 55,941 100.0 % 640 Freedom Business Center 132,000 99.1 % 620 Freedom Business Center 86,570 98.4 % 26 1000 First Avenue 74,139 100.0 % 1060 First Avenue 77,718 100.0 % 630 Freedom Business Center 86,683 100.0 % 1020 First Avenue 74,556 100.0 % 1040 First Avenue 75,488 100.0 % 610 Freedom Business Center 62,991 55.7 % 600 Park Avenue 39,000 100.0 % 933 First Avenue 111,053 100.0 % 500 North Gulph Road 100,820 100.0 % 401 Plymouth Road 204,186 67.1 % Metroplex I 120,877 90.7 % 150 Radnor Chester Road 340,380 100.0 % One Radnor Corporate Center 201,874 100.0 % 201 King of Prussia Road 251,434 88.0 % 555 Lancaster Avenue 241,687 92.0 % Four Radnor Corporate Center 164,464 63.0 % Five Radnor Corporate Center 164,505 89.4 % Three Radnor Corporate Center 119,087 65.2 % Two Radnor Corporate Center 97,576 84.3 % 130 Radnor Chester Road 71,349 100.0 % 170 Radnor Chester Road 68,143 75.0 % 155 King of Prussia Road 144,685 100.0 % 101 West Elm Street 173,827 53.5 % 1 West Elm Street 97,737 100.0 % PENNSYLVANIA SUBURBS SEGMENT SUBTOTAL 3,554,944 88.2 % AUSTIN SEGMENT 401-405 Colorado Street 205,803 100.0 % Broadmoor Austin - Bldg 1 202,850 100.0 % Broadmoor Austin - Bldg 3 198,306 100.0 % Broadmoor Austin - Bldg 4 142,386 100.0 % Broadmoor Austin - Bldg 6 144,249 100.0 % Four Points Center 3 164,818 100.0 % Four Barton Skyway 222,580 94.4 % Four Points Centre 192,396 59.7 % River Place - Bldg 1 76,529 18.2 % River Place - Bldg 2 114,491 25.0 % River Place - Bldg 3 113,465 27.1 % River Place - Bldg 4 87,639 31.9 % River Place - Bldg 5 67,601 75.2 % River Place - Bldg 6 62,038 100.0 % River Place - Bldg 7 69,119 84.9 % Quarry Lake II 120,559 36.0 % AUSTIN SEGMENT SUBTOTAL 2,184,829 77.8 % OTHER SEGMENT 27 6600 Rockledge Drive 160,173 100.0 % 1676 International Drive 299,387 82.0 % 8260 Greensboro Drive 158,961 83.0 % 2340 Dulles Corner Boulevard 268,365 91.8 % Promenade at Main Street 31,445 56.1 % Piazza Offices at Main Street 44,708 100.0 % 920 North King Street 203,328 100.0 % 300 Delaware Avenue 298,071 56.6 % OTHER SEGMENT SUBTOTAL 1,464,438 83.2 % TOTAL CORE PORTFOLIO 11,940,337.00 87.8 % (a) These properties are mixed use properties.
Property Statistics The following table sets forth information with respect to our Core Properties at December 31, 2025: Net Rentable Square Feet % Occupied PHILADELPHIA CENTRAL BUSINESS DISTRICT SEGMENT Cira Center 730,187 94.2 % 1717 Arch Street 1,029,413 93.2 % 27 130 North 18th Street 595,041 90.0 % 100 North 18th Street 708,844 97.3 % 1900 Market Street 456,922 94.4 % 3020 Market Street 190,925 89.2 % 3000 Market Street 90,556 100.0 % 618 Market Street (a) 15,878 74.6 % FMC Tower at Cira Center South (a) 625,863 98.2 % The Bulletin Building (a) 282,709 100.0 % 2930 Chestnut Street (a) 9,788 100.0 % PHILADELPHIA CENTRAL BUSINESS DISTRICT SEGMENT SUBTOTAL 4,736,126 94.7 % PENNSYLVANIA SUBURBS SEGMENT Six Tower Bridge 116,174 41.6 % 426 West Lancaster Avenue 55,941 100.0 % 640 Freedom Business Center 132,000 89.5 % 620 Freedom Business Center 86,570 100.0 % 1000 First Avenue 74,139 94.5 % 1060 First Avenue 77,718 100.0 % 630 Freedom Business Center 86,683 93.6 % 1020 First Avenue 74,556 100.0 % 1040 First Avenue 75,488 100.0 % 610 Freedom Business Center 62,991 57.1 % 600 Park Avenue 39,000 100.0 % 933 First Avenue 111,053 100.0 % 500 North Gulph Road 100,820 100.0 % 401 Plymouth Road 204,186 64.0 % Metroplex I 120,877 95.7 % 150 Radnor Chester Road 340,380 100.0 % One Radnor Corporate Center 201,874 100.0 % 201 King of Prussia Road 251,434 95.2 % 555 Lancaster Avenue 241,687 96.2 % Four Radnor Corporate Center 164,464 60.0 % Five Radnor Corporate Center 164,505 80.3 % Three Radnor Corporate Center 119,087 54.2 % Two Radnor Corporate Center 97,576 86.3 % 130 Radnor Chester Road 71,349 100.0 % 170 Radnor Chester Road 68,143 100.0 % 155 King of Prussia Road 144,685 100.0 % 101 West Elm Street 173,827 67.2 % 1 West Elm Street 97,737 100.0 % PENNSYLVANIA SUBURBS SEGMENT SUBTOTAL 3,554,944 87.6 % AUSTIN SEGMENT 401-405 Colorado Street 205,803 100.0 % Broadmoor Austin - Bldg 1 202,850 100.0 % Broadmoor Austin - Bldg 3 198,306 100.0 % Broadmoor Austin - Bldg 4 142,386 100.0 % Broadmoor Austin - Bldg 6 144,249 100.0 % Four Points Center 3 164,818 100.0 % Four Points Centre 192,396 20.7 % 28 River Place - Bldg 1 76,529 28.3 % River Place - Bldg 2 114,491 26.9 % River Place - Bldg 3 113,465 27.1 % River Place - Bldg 4 87,639 10.0 % River Place - Bldg 5 67,601 75.2 % River Place - Bldg 6 62,038 100.0 % River Place - Bldg 7 69,119 84.9 % AUSTIN SEGMENT SUBTOTAL 1,841,690 73.9 % OTHER SEGMENT 6600 Rockledge Drive 160,173 100.0 % 1676 International Drive 299,387 74.0 % 8260 Greensboro Drive 158,961 80.8 % 2340 Dulles Corner Boulevard 268,365 91.8 % Promenade at Main Street 31,445 56.1 % Piazza Offices at Main Street 44,708 100.0 % 920 North King Street 203,328 100.0 % OTHER SEGMENT SUBTOTAL 1,166,367 87.6 % TOTAL CORE PORTFOLIO 11,299,127 88.3 % (a) These properties are mixed use properties The following table shows lease expirations for the Core Properties as of December 31, 2025, during each of the next 10 years and thereafter.
The properties are located in or near Philadelphia, Pennsylvania; Austin, Texas; Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. As of December 31, 2024, the properties were approximately 87.8% occupied. As of December 31, 2024, we also owned economic interests in ten unconsolidated real estate ventures.
The properties are located in or near Philadelphia, Pennsylvania; Austin, Texas; Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. As of December 31, 2025, the Core Properties were approximately 88.3% occupied. As of December 31, 2025, we also owned economic interests in seven unconsolidated real estate ventures.
We refer to these ventures as “Commerce Square Venture,” “Mid-Atlantic Office Venture,” “MAP Venture,” “Cira Square,” “KB JV,” “One Uptown – Multifamily,” “One Uptown – Office,” “JBG,” “3025 JFK Venture” and “3151 Market Street Venture.” See Note 4 “Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements for further information.
We refer to these ventures as “Commerce Square Venture,” “Mid-Atlantic Office Venture,” “Cira Square,” “One Uptown – Multifamily,” “One Uptown – Office” and “JBG.” See Note 4 “Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements for further information.
Item 2. Properties Overview As of December 31, 2024, we owned 63 properties that contain an aggregate of approximately 11.9 million net rentable square feet and consist of 59 office properties and four mixed-use properties (collectively, the “Core Properties”). We also own one recently completed not yet stabilized property (collectively, the “Properties”).
Item 2. Properties Overview As of December 31, 2025, we owned 60 properties that contain an aggregate of approximately 11.3 million net rentable square feet and consist of 56 office properties and four mixed-use properties (collectively, the “Core Properties”). We also own two recently completed not yet stabilized properties and three properties in development/redevelopment (collectively, the “Properties”).
This table assumes no exercise of renewal options or termination rights: Year of Lease Expiration December 31, Rentable Square Feet (in thousands) Final Annualized Base Rent Under Expiring Leases (a) (in thousands) Percentage of Total Final Annualized Base Rent Under Expiring Leases 2025 507 $ 17,245 3.6 % 2026 679 28,935 6.1 % 2027 1,333 54,784 11.5 % 2028 1,238 49,526 10.4 % 2029 1,734 77,909 16.4 % 2030 885 41,762 8.8 % 2031 571 29,141 6.1 % 2032 621 30,835 6.5 % 2033 441 26,576 5.6 % 2034 1,255 67,574 14.2 % 2035 and thereafter 1,218 50,178 10.6 % 10,482 $ 474,465 100 % (a) Represents the annualized cash rental rate of base rents, including tenant reimbursements, in the final month prior to expiration.
This table assumes no exercise of renewal options or termination rights: Year of Lease Expiration December 31, Rentable Square Feet (in thousands) Final Annualized Base Rent Under Expiring Leases (a) (in thousands) Percentage of Total Final Annualized Base Rent Under Expiring Leases 2026 589 $ 25,136 5.5 % 2027 1,228 48,067 10.4 % 2028 1,130 45,756 9.9 % 2029 1,770 80,071 17.4 % 2030 879 39,410 8.6 % 2031 646 33,400 7.2 % 2032 610 32,220 7.0 % 2033 494 29,831 6.5 % 2034 1,251 68,314 14.8 % 2035 293 13,006 2.8 % 2036 and thereafter 1,081 45,580 9.9 % 9,971 $ 460,791 100 % (a) Represents the annualized cash rental rate of base rents, including tenant reimbursements, in the final month prior to expiration.
Removed
The following table shows lease expirations for the Core Properties as of December 31, 2024, during each of the next 10 years and thereafter.
Added
For more information about our geographic locations, see Note 18 “Segment Information” to our Consolidated Financial Statements: Location Number of Properties Net Rentable Square Feet (in thousands) Percentage Leased as of December 31, 2025 Leased Square Feet (in thousands) Total Base Rent (a) (in thousands) Percentage of Base Rent Philadelphia 11 4,726 96.9 % 4,580 $ 146,455 43.8 % Pennsylvania Suburbs 28 3,555 89.0 % 3,165 113,522 34.0 % Austin 14 1,842 73.9 % 1,362 38,162 11.4 % Other 7 1,166 92.6 % 1,080 35,977 10.8 % 60 11,289 90.2 % 10,187 $ 334,116 100.0 % (a) Represents base rents earned during the year, including tenant reimbursements, and excludes parking income, tenant inducements, and deferred market rent adjustments.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeWe generally consider these disputes to be routine to the conduct of our business and management believes that the final outcome of such proceedings will not have a material adverse effect on our financial position, results of operations or liquidity. Item 4. Mine Safety Disclosures Not applicable. 29 PART II
Biggest changeWe generally consider these disputes to be routine to the conduct of our business and management believes that the final outcome of such proceedings will not have a material adverse effect on our financial position, results of operations or liquidity. Item 4. Mine Safety Disclosures Not applicable. 30 PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePeriod Ending Index 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 FTSE NAREIT All Equity REITs Index 100.00 119.96 137.74 109.59 128.14 142.93 Russell 2000 Index 100.00 94.88 134.06 100.62 112.04 117.56 FTSE NAREIT Equity Office Index 100.00 81.56 99.51 62.07 63.34 76.95 Brandywine Realty Trust 100.00 80.94 96.72 47.73 48.55 56.87 Item 6. [Reserved]
Biggest changePeriod Ending Index 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 Russell 2000 Index 100.00 114.82 91.35 106.82 119.14 134.40 FTSE NAREIT All Equity REITs Index 100.00 141.30 106.05 118.09 123.90 126.71 FTSE NAREIT Equity Office Index 100.00 122.00 76.10 77.65 94.35 81.15 Brandywine Realty Trust 100.00 119.50 58.97 59.99 70.26 41.24 Item 6. [Reserved]
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities The common shares of Brandywine Realty Trust are traded on the New York Stock Exchange (“NYSE”) under the symbol “BDN.” There is no established trading market for units of partnership interests in the Operating Partnership.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The common shares of Brandywine Realty Trust are traded on the New York Stock Exchange (“NYSE”) under the symbol “BDN.” There is no established trading market for units of partnership interests in the Operating Partnership.
For each quarter in 2024 and 2023, the Operating Partnership paid a cash distribution per Class A unit in an amount equal to the dividend paid on a common share for each such quarter.
For each quarter in 2025 and 2024, the Operating Partnership paid a cash distribution per Class A unit in an amount equal to the dividend paid on a common share for each such quarter.
The following chart compares the cumulative total shareholder return for the common shares with the cumulative shareholder return of companies on (i) the S&P 500 Index, (ii) the FTSE NAREIT All Equity REITs Index, (iii) the Russell 2000 Index and (iv) the FTSE NAREIT Equity Office Index for the period beginning December 31, 2019 and ending December 31, 2024 and assumes an investment of $100, with reinvestment of all dividends, has been made in the common shares and in each index on December 31, 2019.
The following chart compares the cumulative total shareholder return for the common shares with the cumulative shareholder return of companies on (i) the S&P 500 Index, (ii) the FTSE NAREIT All Equity REITs Index, (iii) the Russell 2000 Index and (iv) the FTSE NAREIT Equity Office Index for the period beginning December 31, 2020 and ending December 31, 2025 and assumes an investment of $100, with reinvestment of all dividends, has been made in the common shares and in each index on December 31, 2020.
See Item 6., “Selected Financial Data – Liquidity,” and Note 8 “Debt Obligations,” to our Consolidated Financial Statements for further details. Our Board of Trustees has adopted a dividend policy designed such that our quarterly distributions are consistent with our normalized annualized taxable income.
See Note 8 “Debt Obligations,” to our Consolidated Financial Statements for further details. Our Board of Trustees has adopted a dividend policy designed such that our quarterly distributions are consistent with our normalized annualized taxable income.
On February 18, 2025, there were 524 holders of record of our common shares and 20 holders of record (in addition to Brandywine Realty Trust) of Class A units of limited partnership interest in the Operating Partnership. On February 18, 2025, the last reported sales price of the common shares on the NYSE was $4.90.
On February 18, 2026, there were 511 holders of record of our common shares and 20 holders of record (in addition to Brandywine Realty Trust) of Class A units of limited partnership interest in the Operating Partnership. On February 18, 2026, the last reported sales price of the common shares on the NYSE was $3.15.
See Note 14 “Share-Based Compensation, 401(k) Plan and Deferred Compensation,” to our Consolidated Financial Statements for information related to compensation plans under which our common shares are authorized for issuance. See Note 12 “Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our share repurchase program during the year ended December 31, 2024.
See Note 14 “Share-Based Compensation, 401(k) Plan and Deferred Compensation,” to our Consolidated Financial Statements for information related to compensation plans under which our common shares are authorized for issuance.
During 2023, we redeemed 872 Class A units of limited partnership interest held by unaffiliated third parties for total cash payments of $5,000. 30 SHARE PERFORMANCE GRAPH The SEC requires us to present a chart comparing the cumulative total shareholder return on the common shares with the cumulative total shareholder return of (i) a broad equity index and (ii) a published industry or peer group index.
See Note 12 “Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our share repurchase program during the year ended December 31, 2025. 31 SHARE PERFORMANCE GRAPH The SEC requires us to present a chart comparing the cumulative total shareholder return on the common shares with the cumulative total shareholder return of (i) a broad equity index and (ii) a published industry or peer group index.
Removed
During 2022, we redeemed 307,516 Class A units of limited partnership interest held by unaffiliated third parties for total cash payments of $4.0 million.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

83 edited+22 added−19 removed95 unchanged
Biggest changeA property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment in the period that we determine to proceed with development/redevelopment for a future development strategy, and (e) “2023 and 2024 Dispositions,” which represents four properties disposed of during 2023 and 2024. 38 Comparison of Year Ended December 31, 2024 to the Year Ended December 31, 2023 Same Store Property Portfolio Recently Completed/Acquired Properties Development/Redevelopment Properties Other (Eliminations) (a) Total Portfolio (dollars and square feet in millions except per share amounts) 2024 2023 $ Change % Change 2024 2023 2024 2023 2024 2023 2024 2023 $ Change % Change Revenue: Rents $ 413.8 $ 417.3 $ (3.5) (0.8) % $ 16.7 $ 9.4 $ — $ — $ 38.7 $ 53.1 $ 469.2 $ 479.8 $ (10.6) (2.2) % Third party management fees, labor reimbursement and leasing — — — — % — — — — 23.7 24.4 23.7 24.4 (0.7) (2.9) % Other 1.1 1.1 — — % — — — — 11.5 9.4 12.6 10.5 2.1 20.0 % Total revenue 414.9 418.4 (3.5) (0.8) % 16.7 9.4 — — 73.9 86.9 505.5 514.7 (9.2) (1.8) % Property operating expenses 111.0 111.2 (0.2) (0.2) % 3.3 1.6 — — 15.6 17.1 129.9 129.9 — — % Real estate taxes 42.3 43.2 (0.9) (2.1) % 1.2 0.5 — — 4.2 6.3 47.7 50.0 (2.3) (4.6) % Third party management expenses — — — — % — — — — 9.7 10.1 9.7 10.1 (0.4) (4.0) % Net operating income 261.6 264.0 (2.4) (0.9) % 12.2 7.3 — — 44.4 53.4 318.2 324.7 (6.5) (2.0) % Depreciation and amortization 144.9 148.9 (4.0) (2.7) % 9.4 6.4 — — 23.9 33.5 178.2 188.8 (10.6) (5.6) % General & administrative expenses 42.8 34.8 42.8 34.8 8.0 23.0 % Provision for impairment 44.7 131.6 44.7 131.6 (86.9) (66.0) % Net gain on disposition of real estate (2.3) (7.7) 5.4 (70.1) % Net gain on sale of undepreciated real estate — (1.2) 1.2 (100.0) % Operating income (loss) $ 116.7 $ 115.1 $ 1.6 1.4 % $ 2.8 $ 0.9 $ — $ — $ (67.0) $ (146.5) $ 54.8 $ (21.6) $ 76.4 (353.7) % Number of properties 61 61 3 — 64 Square feet 11.5 11.5 0.6 — 12.1 Core Occupancy % (b) 87.6 % 89.0 % 56.4 % Other Income (Expense): Interest and investment income 3.8 1.7 2.1 123.5 % Interest expense (116.3) (95.5) (20.8) 21.8 % Interest expense — Deferred financing costs (5.0) (4.4) (0.6) 13.6 % Equity in loss of unconsolidated real estate ventures (191.6) (77.9) (113.7) 146.0 % Net gain on real estate venture transactions 56.8 0.2 56.6 28,300.0 % Gain on early extinguishment of debt 1.0 0.2 0.8 400.0 % Income tax provision — (0.1) 0.1 (100.0) % Net loss $ (196.5) $ (197.4) $ 0.9 (0.5) % Net loss attributable to Common Shareholders of Brandywine Realty Trust $ (1.14) $ (1.15) $ 0.01 (0.9) % (a) Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance.
Biggest changeA property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment in the period that we determine to proceed with development/redevelopment for a future development strategy, and (e) “2024 and 2025 Dispositions,” which represents properties disposed of during 2024 and 2025. 39 Comparison of Year Ended December 31, 2025 to the Year Ended December 31, 2024 Same Store Property Portfolio Recently Completed/Acquired - Not Yet Stabilized Properties Development/Redevelopment Properties Other (Eliminations) (a) Total Portfolio (dollars and square feet in millions except per share amounts) 2025 2024 $ Change % Change 2025 2024 2025 2024 2025 2024 2025 2024 $ Change % Change Revenue: Rents $ 417.7 $ 409.2 $ 8.5 2.1 % $ 17.3 $ 8.0 $ 3.0 $ 3.3 $ 19.5 $ 48.7 $ 457.5 $ 469.2 $ (11.7) (2.5) % Third party management fees, labor reimbursement and leasing — — — — % — — — — 20.3 23.8 20.3 23.8 (3.5) (14.7) % Other 1.1 0.9 0.2 22.2 % — — — — 5.5 11.6 6.6 12.5 (5.9) (47.2) % Total revenue 418.8 410.1 8.7 2.1 % 17.3 8.0 3.0 3.3 45.3 84.1 484.4 505.5 (21.1) (4.2) % Property operating expenses 113.4 108.0 5.4 5.0 % 3.5 1.7 2.3 2.0 12.2 18.2 131.4 129.9 1.5 1.2 % Real estate taxes 39.7 40.4 (0.7) (1.7) % 0.6 0.5 0.7 0.8 2.6 6.0 43.6 47.7 (4.1) (8.6) % Third party management expenses — — — — % — — — — 10.2 9.7 10.2 9.7 0.5 5.2 % Net operating income 265.7 261.7 4.0 1.5 % 13.2 5.8 — 0.5 20.3 50.2 299.2 318.2 (19.0) (6.0) % Depreciation and amortization 140.3 138.6 1.7 1.2 % 9.8 6.3 1.2 1.2 25.1 32.1 176.4 178.2 (1.8) (1.0) % General & administrative expenses 42.0 42.8 42.0 42.8 (0.8) (1.9) % Provision for impairment 63.4 44.7 63.4 44.7 18.7 41.8 % Net gain on disposition of real estate (9.4) (2.3) (7.1) 308.7 % Net loss on sale of undepreciated real estate 0.1 — 0.1 — % Operating income (loss) $ 125.4 $ 123.1 $ 2.3 1.9 % $ 3.4 $ (0.5) $ (1.2) $ (0.7) $ (110.2) $ (69.4) $ 26.7 $ 54.8 $ (28.1) (51.3) % Number of properties 59 59 3 3 — 65 Square feet 11.1 11.1 0.5 0.7 — 12.3 Core Occupancy % (b) 88.2 % 88.8 % 100 % Other Income (Expense): Interest and investment income 4.4 3.8 0.6 15.8 % Interest expense (135.0) (116.3) (18.7) 16.1 % Interest expense — Deferred financing costs (5.1) (5.0) (0.1) 2.0 % Equity in loss of unconsolidated real estate ventures (57.7) (191.6) 133.9 (69.9) % Net gain on real estate venture transactions 0.2 56.8 (56.6) (99.6) % Gain (loss) on early extinguishment of debt (12.3) 1.0 (13.3) (1,330.0) % Income tax provision (0.1) — (0.1) — % Net loss $ (178.9) $ (196.5) $ 17.6 (9.0) % Net loss attributable to Common Shareholders of Brandywine Realty Trust $ (1.03) $ (1.14) $ 0.11 (9.6) % (a) Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance.
If we are unable to renew leases or relet space under expiring leases, at anticipated rental rates, or if tenants terminate their leases early, our cash flow would be adversely impacted.
If we are unable to renew leases or relet space under expiring leases, at anticipated rental rates, or if our tenants terminate their leases early, our cash flow would be adversely impacted.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting periods.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting periods.
NOI does not reflect interest expenses, real estate impairments, depreciation and amortization costs, capital expenditures, and leasing costs. We believe that net income, as defined by GAAP, is the most appropriate earnings measure. See Note 18 “Segment Information,” to our Consolidated Financial Statements for a reconciliation of NOI to our consolidated net income (loss) as defined by GAAP.
NOI does not reflect interest expenses, real estate impairments, depreciation and amortization costs, capital expenditures, and leasing costs. We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measure. See Note 18 “Segment Information,” to our Consolidated Financial Statements for a reconciliation of NOI to our consolidated net income (loss) as defined by GAAP.
Our ability to incur additional debt is dependent upon a number of factors, including our credit ratings, the value of our unencumbered assets, our degree of leverage and borrowing restrictions imposed by our lenders.
Our ability to incur additional debt is dependent upon a number of factors, including our credit ratings, the value of our unencumbered assets, our degree of leverage and borrowing restrictions imposed by our lenders.
Cash is used in investing activities to fund acquisitions, development, or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that we expect will enable us to take advantage of our development, leasing, financing, and property management skills and invest in existing buildings that meet our investment criteria for additional capital.
Cash is used in investing activities to fund acquisitions, development, or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that we expect will enable us to take advantage of our development/redevelopment, leasing, financing, and property management skills and invest in existing buildings that meet our investment criteria for additional capital.
If and when our plans change, we revise our recoverability analyses to use the cash flows expected from the operations and eventual disposition of each asset using holding periods that are consistent with our revised plans. Real estate investment fair values are estimated based on agreements with third parties, discounted cash flows, or comparable sales.
If and when 36 our plans change, we revise our recoverability analyses to use the cash flows expected from the operations and eventual disposition of each asset using holding periods that are consistent with our revised plans. Real estate investment fair values are estimated based on agreements with third parties, discounted cash flows, or comparable sales.
The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Although we believe that the 31 expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved.
The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved.
We seek to increase cash flows from our properties by maintaining quality standards for our properties that promote high occupancy rates and permit increases in rental rates while reducing tenant turnover and controlling operating expenses. Our revenue also includes third-party fees generated by our property management, leasing, development and construction businesses.
We seek to increase cash flows from our properties by maintaining quality standards for our properties that promote high occupancy rates and permit increases in rental rates while reducing tenant turnover and controlling operating expenses. Our revenue also includes third-party fees generated by our property management, leasing, development/redevelopment and construction businesses.
The indenture under which the Operating Partnership issued its unsecured notes contains financial covenants, including: (i) a leverage ratio not to exceed 60%; (ii) a secured debt leverage ratio not to exceed 40%; (iii) a debt service 46 coverage ratio of greater than 1.5 to 1.0; and (iv) an unencumbered asset value of not less than 150% of unsecured debt.
The indenture under which the Operating Partnership issued its unsecured notes contains financial covenants, including: (i) a leverage ratio not to exceed 60%; (ii) a secured debt leverage ratio not to exceed 40%; (iii) a debt service coverage ratio of greater than 1.5 to 1.0; and (iv) an unencumbered asset value of not less than 150% of unsecured debt.
This property is consolidated, as the borrower is a VIE and we, through our ownership of the second and third mortgages, are the primary beneficiary. On October 21, 2020, we also acquired the $79.8 million first mortgage on the property from the third-party mortgage lender pursuant to an agreement with certain of the former owners.
This property is consolidated, as the borrower is a VIE and we, through our ownership of the second and third mortgages, are the primary beneficiary. On October 21, 2020, 48 we also acquired the $79.8 million first mortgage on the property from the third-party mortgage lender pursuant to an agreement with certain of the former owners.
Additionally, we will be required to pay these certain former owners an amount estimated at approximately 47 $0.6 million to redeem their residual interest in the fee owner of this property. The $0.6 million payment is included within “Other liabilities” on the consolidated balance sheets.
Additionally, we will be required to pay these certain former owners an amount estimated at approximately $0.6 million to redeem their residual interest in the fee owner of this property. The $0.6 million payment is included within “Other liabilities” on the consolidated balance sheets.
This report including the following discussion, contains forward-looking statements, which we intend to be covered by the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.
This report including the following discussion, contains forward-looking statements, which we intend to be covered by the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities 32 Exchange Act of 1934, as amended.
The 2029 Notes were priced at approximately 99.51% of their face amount. We received approximately $391.8 million of net proceeds after the deduction for underwriting discounts and offering expenses.
The 2029 Notes were priced at approximately 99.51% of their face amount. 43 We received approximately $391.8 million of net proceeds after the deduction for underwriting discounts and offering expenses.
These forward-looking statements are inherently uncertain, and actual results may differ from expectations. “See “Forward-Looking Statements” immediately before Part I of this report. OVERVIEW During the twelve months ended December 31, 2024, we owned and managed properties within four segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas, and (4) Other.
These forward-looking statements are inherently uncertain, and actual results may differ from expectations. “See “Forward-Looking Statements” immediately before Part I of this report. OVERVIEW During the twelve months ended December 31, 2025, we owned and managed properties within four segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas, and (4) Other.
The Other segment includes properties in Northern Virginia, Washington, D.C., Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. In addition to the four segments, our corporate group is responsible for cash and investment management, development/redevelopment of certain properties during the construction period, and certain other general support functions.
The Other segment includes properties in Northern Virginia, Washington, D.C., Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. In addition to the four segments, our corporate group is responsible for cash and investment management, development/redevelopment of certain real estate properties during the construction period, and certain other general support functions.
We are also committed to making additional contributions under the program. We estimate that, as of December 31, 2024, these additional contributions, which are not fixed under the terms of agreement, will be $2.0 million. See Note 19 “Commitments and Contingencies,” to our Consolidated Financial Statements for further information.
We are also committed to making additional contributions under the program. We estimate that, as of December 31, 2025, these additional contributions, which are not fixed under the terms of agreement, will be $2.0 million. See Note 19 “Commitments and Contingencies,” to our Consolidated Financial Statements for further information.
The attributes that we consider in our assessment include the age and condition of the property, average asking rental rates, access to mass transit and highways, floorplate efficiencies, amenities within, and nearby, the property and availability of parking as well as market demographics such that bear on demand for space at our portfolio.
The attributes that we consider in our assessment include the age and condition of the property, average asking rental rates, access to mass transit and highways, floorplate efficiencies, amenities within, and nearby, the property and availability of parking as well as market demographics such that bear on demand for space at our properties.
Based on the foregoing, as well as cash flows from operations net of dividend requirements, we believe we have sufficient capital to fund our remaining capital requirements on existing development and redevelopment projects and pursue additional attractive investment opportunities. We expect that our primary uses of capital during 2025 will be to fund our current development and redevelopment projects.
Based on the foregoing, as well as cash flows from operations net of dividend requirements, we believe we have sufficient capital to fund our remaining capital requirements on existing development and redevelopment projects and pursue additional attractive investment opportunities. We expect that our primary uses of capital during 2026 will be to fund our current development and redevelopment projects.
In addition, a material adverse change in cash provided by operations could adversely affect our compliance with financial performance covenants under our unsecured credit facility, including unsecured term loans and unsecured notes. As of December 31, 2024, we were in compliance with all of our debt covenants and requirement obligations.
In addition, a material adverse change in cash provided by operations could adversely affect our compliance with financial performance covenants under our unsecured credit facility, including unsecured term loans and unsecured notes. As of December 31, 2025, we were in compliance with all of our debt covenants and requirement obligations.
(b) On November 23, 2022, the unsecured term loan of $250.0 million was swapped to a fixed rate. At December 31, 2024, the fixed rate for this instrument was 5.41% and matures on June 30, 2027. The effective date of the swap was January 31, 2023.
(b) On November 23, 2022, the unsecured term loan of $250.0 million was swapped to a fixed rate. At December 31, 2025, the fixed rate for this instrument was 5.41% and matures on June 30, 2027. The effective date of the swap was January 31, 2023.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with the Consolidated Financial Statements appearing elsewhere herein and is based primarily on our Consolidated Financial Statements for the years ended December 31, 2024, 2023 and 2022.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion should be read in conjunction with the Consolidated Financial Statements appearing elsewhere herein and is based primarily on our Consolidated Financial Statements for the years ended December 31, 2025, 2024 and 2023.
Equity In order to maintain its qualification as a REIT, the Parent Company is required to, among other things, pay dividends to its shareholders of at least 90% of its REIT taxable income. During the year ended December 31, 2024, the Parent Company paid dividends in excess of the 90% criterion.
Equity In order to maintain its qualification as a REIT, the Parent Company is required to, among other things, pay dividends to its shareholders of at least 90% of its REIT taxable income. During the year ended December 31, 2025, the Parent Company paid dividends in excess of the 90% criterion.
As of December 31, 2024, the Parent Company owned a 99.7% interest in the Operating Partnership. The remaining interest of approximately 0.3% pertains to common limited partnership interests owned by non-affiliated investors who contributed property to the Operating Partnership in exchange for their interests.
As of December 31, 2025, the Parent Company owned a 99.7% interest in the Operating Partnership. The remaining interest of approximately 0.3% pertains to common limited partnership interests owned by non-affiliated investors who contributed property to the Operating Partnership in exchange for their interests.
Refer to Part II, Item 7. “Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of the results of operations for the year ended December 31, 2022 which is presented therein in the form of a year-to-year comparison to the year ended December 31, 2023.
Refer to Part II, Item 7. “Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 for a discussion of the results of operations for the year ended December 31, 2023 which is presented therein in the form of a year-to-year comparison to the year ended December 31, 2024.
With uncertain economic conditions, vacancy rates may increase, effective rental rates on new and renewed leases may decrease and tenant installation costs, including concessions, may increase in most or all of our markets during 2025 and possibly beyond.
With uncertain economic conditions, vacancy rates may increase, effective rental rates on new and renewed leases may decrease and tenant installation costs, including concessions, may increase in most or all of our markets during 2026 and possibly beyond.
We believe that presentation of our consolidated financial information, without a breakdown by segment, will effectively present important information useful to our investors. Net operating income (“NOI”), as presented in the comparative analysis, below is defined as total revenue less property operating expenses, real estate taxes, and third party management expenses.
We believe that presentation of our consolidated financial information, without a breakdown by segment, will effectively present important information useful to our investors. Net operating income (“NOI”), as presented in the comparative analysis, below is non-GAAP financial measure defined as total revenue less property operating expenses, real estate taxes, and third party management expenses.
As of December 31, 2024, our senior unsecured credit ratings and outlook were as follows: Moody's S&P Long-term debt Ba2 BB+ Outlook Stable Negative If our credit ratings are lowered further, our ability to access the public debt markets, our costs of funds, and other terms for new debt issuances could be adversely impacted.
As of December 31, 2025, our senior unsecured credit ratings and outlook were as follows: Moody's S&P Long-term debt Ba2 BB+ Outlook Stable Negative 44 If our credit ratings are lowered further, our ability to access the public debt markets, our costs of funds, and other terms for new debt issuances could be adversely impacted.
(2) Represents our residential operation at 2929 Walnut Street in Philadelphia, Pennsylvania. (3) Does not include Properties under development/redevelopment. (4) See Note 18 “Segment Information,” to our Consolidated Financial Statements for the definition of Net Operating Income.
(2) Represents our residential operation at 2929 Walnut Street and 3025 JFK in Philadelphia, Pennsylvania. (3) Does not include Properties under development/redevelopment. (4) See Note 18 “Segment Information,” to our Consolidated Financial Statements for the definition of Net Operating Income.
See Note 19 “Commitments and Contingencies, ” to our Consolidated Financial Statements for further details on payment guarantees provided on the behalf of real estate ventures. In connection with the Schuylkill Yards Project, we entered into a neighborhood engagement program and, as of December 31, 2024, had $5.2 million of future contractual obligations.
See Note 19 “Commitments and Contingencies, ” to our Consolidated Financial Statements for further details on payment guarantees provided on behalf of our real estate ventures. In connection with the Schuylkill Yards Project, we entered into a neighborhood engagement program and, as of December 31, 2025, had $4.2 million of future contractual obligations.
Changes in the assumptions used to estimate future common development costs could result in a significant impact on the amounts recorded as net gain on disposition of real estate or net gain on sale of undepreciated real estate. 37 RESULTS OF OPERATIONS The following discussion is based on our Consolidated Financial Statements for the years ended December 31, 2024 and 2023.
Changes in the assumptions used to estimate future common development costs could result in a significant impact on the amounts recorded as net gain on disposition of real estate or net gain on sale of undepreciated real estate. 38 RESULTS OF OPERATIONS The following discussion is based on our Consolidated Financial Statements for the years ended December 31, 2025 and 2024.
See Note 12 “Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our dividends declared for the fourth quarter of 2024.
See Note 12 “Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our dividends declared for the fourth quarter of 2025.
As a result, and as part of customary lease negotiations, we are often required to provide rent concessions or abatements, incur charges for tenant improvements and other inducements, including early termination rights or potential below market renewal options, all of which impact, in varying degrees, annualized rents. 33 The table below summarizes occupancy statistics of our Core Properties by segment for the twelve months ended December 31, 2024 and 2023: Twelve months ended December 31, % Occupied % Occupied 2024 2023 Philadelphia CBD 93.7 % 95.2 % Pennsylvania Suburbs 88.2 % 86.5 % Austin, Texas 77.8 % 81.7 % Other 83.2 % 80.5 % Total - Core Properties 87.8 % 88.0 % The table below summarizes the occupancy statistics of our Properties, broken down by property types for the twelve months ended December 31, 2024 and 2023: Twelve months ended December 31, Twelve months ended December 31, % Net Operating Income (4) % Net Operating Income (4) % Occupied % Occupied 2024 2023 2024 2023 Office 90.8 % 91.1 % 89.5 % 89.2 % Life Science (1) 6.1 % 6.1 % 81.7 % 84.6 % Residential (2) 3.1 % 2.8 % 82.2 % 83.7 % Total (3) 100.0 % 100.0 % 88.9 % 89.1 % (1) Represents Philadelphia portfolio assets located at 3000 Market Street and 3025 Market Street in Philadelphia, Pennsylvania, dedicated life science floors at Cira Centre in Philadelphia, Pennsylvania and 250 King of Prussia Road in Radnor, Pennsylvania.
As a result, and as part of customary lease negotiations, we are often required to provide rent concessions or abatements, incur charges for tenant improvements and other inducements, including early termination rights or potential below market renewal options, all of which impact, in varying degrees, annualized rents. 34 The table below summarizes occupancy statistics of our Core Properties by segment for the twelve months ended December 31, 2025 and 2024 : Twelve months ended December 31, % Occupied % Occupied 2025 2024 Philadelphia CBD 94.7 % 93.7 % Pennsylvania Suburbs 87.6 % 88.2 % Austin, Texas 73.9 % 77.8 % Other 87.6 % 83.2 % Total - Core Properties 88.3 % 87.8 % The table below summarizes the occupancy statistics of our Properties, broken down by property types for the twelve months ended December 31, 2025 and 2024: Twelve months ended December 31, Twelve months ended December 31, % Net Operating Income (4) % Net Operating Income (4) % Occupied % Occupied 2025 2024 2025 2024 Office 90.8 % 90.8 % 88.0 % 89.5 % Life Science (1) 5.8 % 6.1 % 85.4 % 81.7 % Residential (2) 3.4 % 3.1 % 86.6 % 82.2 % Total (3) 100.0 % 100.0 % 87.8 % 88.9 % (1) Represents Philadelphia portfolio assets located at 3000 Market Street and 3025 Market Street in Philadelphia, Pennsylvania, dedicated life science floors at Cira Centre in Philadelphia, Pennsylvania and 250 King of Prussia Road in Radnor, Pennsylvania.
The charter documents of the Parent Company and Operating Partnership do not limit the amount or form of indebtedness that the Operating Partnership may incur, and its policies on debt incurrence are solely within the discretion of the Parent Company’s Board of Trustees, subject to the financial covenants in the Credit Facility, indenture and other credit agreements.
The charter documents of the Parent Company and Operating Partnership do not limit the amount or form of indebtedness that the Operating Partnership may incur, and its policies on debt incurrence are solely within the discretion of the Parent Company’s Board of Trustees, subject to the financial covenants in the Unsecured Credit Facility, the indenture for our unsecured notes and our other credit agreements.
Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance, management fees, and bad debt expense.
Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance and management fees.
In our ongoing assessment of our Properties as “quality” or “high quality”, we consider both their quantitative and qualitative attributes, including in relation to other properties within a given submarket or adjacent submarkets that compete with our portfolio for tenants.
In our ongoing assessment of our Properties, we consider both their quantitative and qualitative attributes, including in relation to other properties within a given submarket or adjacent submarkets that compete with our portfolio for tenants.
In addition, as of December 31, 2024, approximately 96% of our leases (as a percentage of the aggregate net rentable square feet of our wholly-owned portfolio) contain annual rent escalations that are either fixed (generally ranging from 2.0% to 3.0% per lease year) or indexed based on a consumer price index or other indices.
In addition, as of December 31, 2025, approximately 97% of our leases (as a percentage of the aggregate net rentable square feet of our wholly-owned portfolio) contained annual rent escalations that are either fixed (generally ranging from 2.0% to 3.0% per lease year) or indexed based on a consumer price index or other indices.
Leases that accounted for approximately 3.9% of our aggregate final annualized base rents as of December 31, 2024 (representing approximately 4.2% of the net rentable square feet of the properties) are scheduled to expire without penalty in 2025. We maintain an active dialogue with our tenants in an effort to maximize lease renewals.
Leases that accounted for approximately 5.5% of our aggregate final annualized base rents as of December 31, 2025 (representing approximately 5.2% of the net rentable square feet of the properties) are scheduled to expire without penalty in 2026. We maintain an active dialogue with our tenants in an effort to maximize lease renewals.
Comparison of the Year Ended December 31, 2024 to the Year Ended December 31, 2023 The following comparison for the year ended December 31, 2024 to the year ended December 31, 2023, makes reference to the effect of the following: (a) “Same Store Property Portfolio,” which represents 61 properties containing an aggregate of approximately 11.5 million net rentable square feet that we owned and consolidated for the twelve-month periods ended December 31, 2024 and 2023.
Comparison of the Year Ended December 31, 2025 to the Year Ended December 31, 2024 The following comparison for the year ended December 31, 2025 to the year ended December 31, 2024, makes reference to the effect of the following: (a) “Same Store Property Portfolio,” which represents 59 properties containing an aggregate of approximately 11.1 million net rentable square feet that we owned and consolidated for the twelve-month periods ended December 31, 2025 and 2024.
From time to time or as the need arises, we use derivative instruments to manage interest rate risk exposures and not for speculative or trading purposes. The total outstanding principal balance of our variable rate debt was approximately $431.3 million as of December 31, 2024.
From time to time or as the need arises, we use derivative instruments to manage interest rate risk exposures and not for speculative or trading purposes. The total outstanding principal balance of our variable rate debt was approximately $506.6 million as of December 31, 2025.
The expense reimbursement provisions in our leases resulted in Same Store Property Portfolio operating expense recovery rates of 52.7% and 52.9% for the twelve months ended December 31, 2024 and 2023, respectively. Contractual Obligations We provide customary guarantees for certain development projects of our unconsolidated real estate ventures.
The expense reimbursement provisions in our leases resulted in Same Store Property Portfolio operating expense recovery rates of 52.6% and 52.1% for the twelve months ended December 31, 2025 and 2024, respectively. Other Contractual Obligations We provide customary guarantees for certain development projects of our unconsolidated real estate ventures.
We have committed to contribute $15.0 million to a newly-formed venture capital fund that invests in early-stage life science companies. As of December 31, 2024 we had funded $2.7 million of the foregoing commitment.
We have committed to contribute $15.0 million to a newly-formed venture capital fund that invests in early-stage life science companies. As of December 31, 2025 we had funded $4.6 million of the foregoing commitment.
If market rates of interest decrease by 100 basis points, the fair value of our outstanding variable rate debt would increase by approximately $11.5 million at December 31, 2024. These amounts were determined solely by considering the impact of hypothetical interest rates on our financial instruments.
If market rates of interest decrease by 100 basis points, the fair value of our outstanding variable rate debt would increase by approximately $10.0 million at December 31, 2025. 49 These amounts were determined solely by considering the impact of hypothetical interest rates on our financial instruments.
The total fair value of our variable rate debt was approximately $403.9 million at December 31, 2024. For sensitivity purposes, if market rates of interest increase by 100 basis points the fair value of our variable rate debt would decrease by approximately $10.9 million at December 31, 2024.
The total fair value of our variable rate debt was approximately $501.5 million at December 31, 2025. For sensitivity purposes, if market rates of interest increase by 100 basis points the fair value of our variable rate debt would decrease by approximately $9.5 million at December 31, 2025.
Our Properties provide a relatively consistent stream of cash flows that provides us with the resources to fund operating expenses, debt service and quarterly dividends. The increase in operating cash flows is primarily due to the decrease in average occupancy in 2024 compared to 2023.
Our Properties provide a relatively consistent stream of cash flows that provides us with the resources to fund operating expenses, debt service and quarterly dividends. The decrease in operating cash flows is primarily due to the decrease in prepaid rents in 2025 compared to 2024.
Cash Flows The following discussion of our cash flows is based on the consolidated statement of cash flows and is not meant to be a comprehensive discussion of the changes in our cash flows for the years presented. 44 As of December 31, 2024 and 2023, we maintained cash and cash equivalents and restricted cash of $96.2 million and $67.5 million, respectively.
Cash Flows The following discussion of our cash flows is based on the consolidated statement of cash flows and is not meant to be a comprehensive discussion of the changes in our cash flows for the years presented. 45 As of December 31, 2025 and 2024, we maintained cash and cash equivalents and restricted cash of $62.3 million and $96.2 million, respectively.
In determining whether improvements constitute landlord or tenant assets, we consider a number of factors that may require subjective or complex judgments, including: whether the improvements are unique to the tenant or reusable by other tenants; whether the tenant is permitted to alter or remove the improvements without our consent or without compensating us for any 36 lost fair value; whether the ownership of the improvements remains with us or remains with the tenant at the end of the lease term; and whether the economic substance of the lease terms is properly reflected.
In determining whether improvements constitute landlord or tenant assets, we consider a number of factors that may require subjective or complex judgments, including: whether the improvements are unique to the tenant or reusable by other tenants; whether the tenant is permitted to alter or remove the improvements without our consent or without compensating us for any lost fair value; whether the ownership of the improvements remains with us or remains with the tenant at the end of the lease term; and whether the economic substance of the lease terms is properly reflected. 37 For certain leases, we make significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option.
As of December 31, 2024, based on prevailing interest rates and credit spreads, the fair value of our unsecured notes was $1,537.2 million. For sensitivity purposes, a 100 basis point change in the discount rate equates to a change in the total fair value of our debt of approximately $15.4 million at December 31, 2024.
As of December 31, 2025, based on prevailing interest rates and credit spreads, the fair value of our unsecured notes was $2,027.6 million. For sensitivity purposes, a 100 basis point change in the discount rate equates to a change in the total fair value of our debt of approximately $20.0 million at December 31, 2025.
Changes in these assessments could result in the write-off of any recorded assets associated with straight-line rental revenue and acceleration of depreciation and amortization expense associated with costs we incurred related to these leases.
The lease term impacts the period over which we determine and record rental revenue and impacts the period over which we amortize lease-related costs. Changes in these assessments could result in the write-off of any recorded assets associated with straight-line rental revenue and acceleration of depreciation and amortization expense associated with costs we incurred related to these leases.
Scheduled principal payments and related weighted average annual effective interest rates for our debt as of December 31, 2024 were as follows (dollars in thousands): Period Principal maturities Weighted Average Interest Rate of Maturing Debt 2025 $ 70,000 6.3 % 2026 32,734 7.1 % 2027 700,000 4.5 % 2028 595,000 7.4 % 2029 750,000 6.8 % 2030 — — % 2031 — — % 2032 — — % 2033 — — % 2034 — — % Thereafter 78,610 5.2 % Totals $ 2,226,344 6.2 % Unsecured Debt The Operating Partnership is the issuer of our unsecured notes which are fully and unconditionally guaranteed by the Parent Company.
Scheduled principal payments and related weighted average annual effective interest rates for our debt as of December 31, 2025 were as follows (dollars in thousands): Period Principal maturities Weighted Average Interest Rate of Maturing Debt 2026 $ 178,014 6.6 % 2027 700,000 4.5 % 2028 350,000 8.5 % 2029 900,000 6.9 % 2030 — — % 2031 300,000 6.1 % 2032 — — % 2033 — — % 2034 — — % 2035 78,610 5.2 % Thereafter 57,324 7.3 % Totals $ 2,563,948 6.3 % 47 Unsecured Debt The Operating Partnership is the issuer of our unsecured notes which are fully and unconditionally guaranteed by the Parent Company.
Net Gain on Disposition of Real Estate The $2.3 million gain on disposition of real estate for 2024 is due to the sale of a parking lot property in Richmond, VA for a gross sales price of $8.5 million and net cash proceeds of $8.3 million.
The $9.4 million payment was received in 2025 and was recognized as a gain on disposition of real estate. The $2.3 million gain on disposition of real estate for 2024 is due to the sale of a parking lot property in Richmond, Virginia for a gross sales price of $8.5 million and net cash proceeds of $8.3 million.
The Operating Partnership is in compliance with all covenants as of December 31, 2024.
The Operating Partnership was in compliance with all covenants as of December 31, 2025.
Due to the uncertainty of specific actions we may undertake to minimize possible effects of market interest rate increases, this analysis assumes no changes in our financial structure. 48 Funds from Operations (FFO) Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate FFO by adjusting net income/(loss) attributable to common unit holders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable consolidated real estate, impairment losses on investments in unconsolidated real estate ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated real estate ventures, real estate related depreciation and amortization, and after similar adjustments for unconsolidated real estate ventures.
Funds from Operations (FFO) Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate FFO by adjusting net income/(loss) attributable to common unit holders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable consolidated real estate, impairment losses on investments in unconsolidated real estate ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated real estate ventures, real estate related depreciation and amortization, and after similar adjustments for unconsolidated real estate ventures.
Occupancy at our Core Properties at December 31, 2024 was 87.8% compared to 88.0% at December 31, 2023. 32 The table below summarizes selected operating and leasing statistics of our wholly owned properties for the years ended December 31, 2024 and 2023: Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Leasing Activity Core Properties (1)(2): Total net rentable square feet owned 11,930,549 12,698,115 11,930,549 12,698,115 Occupancy percentage (end of period) 87.8 % 88.0 % 87.8 % 88.0 % Average occupancy percentage 87.4 % 88.0 % 88.3 % 88.9 % Total Portfolio, less properties in development/redevelopment: Tenant retention rate (3) 75.6 % 44.7 % 63.0 % 49.3 % New leases and expansions commenced (square feet) 97,657 123,515 425,604 342,731 Leases renewed (square feet) 100,776 85,620 597,808 423,998 Net absorption (square feet) 32,455 (62,512) (128,494) (298,896) Percentage change in rental rates per square foot (4): New and expansion rental rates 8.0 % 24.6 % 17.8 % 22.2 % Renewal rental rates 5.4 % 5.9 % 11.3 % 10.9 % Combined rental rates 5.9 % 13.4 % 12.6 % 13.5 % Weighted average lease term for leases commenced (years) 6.4 4.9 6.2 6.2 Average annual rent (per square foot) (6) (7) $ 40.07 $ 36.54 $ 40.08 $ 37.25 Capital Costs Committed (5)(6): Leasing commissions (per square foot) $ 5.56 $ 5.63 $ 7.77 $ 7.65 Tenant improvements (per square foot) $ 12.32 $ 11.30 $ 21.19 $ 14.11 Total capital per square foot per lease year $ 3.07 $ 3.10 $ 3.88 $ 3.23 Average annualized capital as % of average annual rent (6) (7) 8.9 % 10.8 % 12.0 % 10.0 % (1) Does not include properties under development, redevelopment, held for sale, or sold.
Occupancy at our Core Properties at December 31, 2025 was 88.3% compared to 87.8% at December 31, 2024. 33 The table below summarizes selected operating and leasing statistics of our wholly owned properties for the years ended December 31, 2025 and 2024: Three Months Ended December 31, Year Ended December 31, 2025 2024 2025 2024 Leasing Activity Core Properties (1)(2): Total net rentable square feet owned 11,289,339 11,930,549 11,289,339 11,930,549 Occupancy percentage (end of period) 88.3 % 87.8 % 88.3 % 87.8 % Average occupancy percentage 89.3 % 87.4 % 88.4 % 88.3 % Total Portfolio, less properties in development/redevelopment: Tenant retention rate (3) 54.2 % 75.6 % 64.4 % 63.0 % New leases and expansions commenced (square feet) 87,094 97,657 469,257 425,604 Leases renewed (square feet) 77,604 100,776 776,186 597,808 Net absorption (square feet) (57,356) 32,455 (169,864) (128,494) Percentage change in rental rates per square foot (4): New and expansion rental rates 25.9 % 8.0 % 13.2 % 17.8 % Renewal rental rates 16.8 % 5.4 % 2.5 % 11.3 % Combined rental rates 20.9 % 5.9 % 4.2 % 12.6 % Weighted average lease term for leases commenced (years) 7.2 6.4 5.4 6.2 Average annual rent (per square foot) (7) (8) $ 45.17 $ 40.07 $ 39.93 $ 40.08 Capital Costs Committed (5)(6)(7): Leasing commissions (per square foot) $ 11.26 $ 5.56 $ 5.67 $ 7.77 Tenant improvements (per square foot) $ 23.97 $ 12.32 $ 11.50 $ 21.19 Total capital per square foot per lease year $ 4.14 $ 3.07 $ 3.21 $ 3.88 Average annualized capital as % of average annual rent (7) (8) 10.8 % 8.9 % 9.5 % 12.0 % (1) Does not include properties under development, redevelopment, held for sale, or sold.
(2) Includes leasing at recently completed not-stabilized Properties. The statistics presented for periods ended prior to the three-month period ended December 31, 2024 have not been adjusted for properties sold subsequent to the periods presented. (3) Calculated as percentage of total square feet. (4) Includes base rent plus reimbursement for operating expenses and real estate taxes.
(2) The statistics presented for periods ended prior to the three-month period ended December 31, 2025 have not been adjusted for properties sold subsequent to the periods presented. (3) Calculated as a percentage of total net rentable square feet. (4) Includes base rent plus reimbursement for operating expenses and real estate taxes. (5) Calculated on a weighted average basis.
Capital Markets The Parent Company issues equity from time to time, the proceeds of which it contributes to the Operating Partnership in exchange for additional interests in the Operating Partnership, and guarantees debt obligations of the Operating Partnership.
The Operating Partnership’s secured debt obligations as of December 31, 2025 amounted to $235.3 million. Capital Markets The Parent Company issues equity from time to time, the proceeds of which it contributes to the Operating Partnership in exchange for additional interests in the Operating Partnership, and guarantees debt obligations of the Operating Partnership.
The Same Store Property Portfolio includes properties acquired or placed in service on or prior to January 1, 2023 and owned and consolidated through December 31, 2024, excluding properties classified as held for sale, (b) “Total Portfolio,” which represents all properties owned and consolidated by us during 2024 and 2023, (c) “Recently Completed/Acquired Properties,” which represents three properties placed into service or acquired on or subsequent to January 1, 2023, (d) “Development/Redevelopment Properties,” which represents zero properties currently in development/redevelopment.
The Same Store Property Portfolio includes properties acquired or placed in service on or prior to January 1, 2024 and owned and consolidated through December 31, 2025, excluding properties classified as held for sale, (b) “Total Portfolio,” which represents all properties owned and consolidated by us during 2025 and 2024, (c) “Recently Completed/Acquired - Not Yet Stabilized Properties,” which represents three properties (155 King of Prussia Road, 250 King of Prussia Road and 3025 JFK - office) placed into service, acquired or not yet stabilized on or subsequent to January 1, 2024, (d) “Development/Redevelopment Properties,” which represents three properties (300 Delaware Avenue, 165 King of Prussia Road and 3151 Market Street) currently in development/redevelopment.
Net Gain on Real Estate Venture Transactions On June 28, 2024, we recapitalized our Original MAP Venture, in which we had a negative investment balance of $52.2 million as of March 31, 2024.
See Note 4 “Investment in Unconsolidated Real Estate Ventures” to our Consolidated Financial Statements for further information. Net Gain on Real Estate Venture Transactions On June 28, 2024, we recapitalized our Original MAP Venture, in which we had a negative investment balance of $52.2 million as of March 31, 2024.
The following table presents a reconciliation of net income attributable to common unitholders to FFO for the years ended December 31, 2024 and 2023: Year Ended December 31, 2024 2023 (amounts in thousands, except share information) Net loss attributable to common unitholders $ (197,670) $ (197,948) Add (deduct): Amount allocated to unvested restricted unitholders 1,178 567 Net gain on real estate venture transactions (63,696) (181) Net gain on disposition of real estate (2,297) (7,736) Provision for impairment 44,101 131,573 Company's share of impairment of an unconsolidated real estate venture 147,184 37,175 Depreciation and amortization: Real property 154,945 159,213 Leasing costs including acquired intangibles 19,746 26,131 Company’s share of unconsolidated real estate ventures 47,013 50,565 Partners’ share of consolidated real estate ventures (9) (20) Funds from operations $ 150,495 $ 199,339 Funds from operations allocable to unvested restricted shareholders (1,624) (1,043) Funds from operations available to common share and unit holders (FFO) $ 148,871 $ 198,296 Weighted-average shares/units outstanding — basic (a) 173,042,591 172,475,645 Weighted-average shares/units outstanding — fully diluted (a) 175,969,844 173,046,299 (a) Includes common shares and partnership units outstanding through the years ended December 31, 2024 and December 31, 2023, respectively.
The following table presents a reconciliation of net loss attributable to common unitholders to FFO for the years ended December 31, 2025 and 2024: Year Ended December 31, 2025 2024 (amounts in thousands, except share information) Net loss attributable to common unitholders $ (180,015) $ (197,670) Add (deduct): Amount allocated to unvested restricted unitholders 1,231 1,178 Net (gain) loss on real estate venture transactions 227 (63,696) Net gain on disposition of real estate (9,396) (2,297) Provision for impairment 63,392 44,101 Company's share of impairment of an unconsolidated real estate venture 4,149 147,184 Depreciation and amortization: Real property 154,009 154,945 Leasing costs including acquired intangibles 19,130 19,746 Company’s share of unconsolidated real estate ventures 41,959 47,013 Partners’ share of consolidated real estate ventures (88) (9) Funds from operations $ 94,598 $ 150,495 Funds from operations allocable to unvested restricted shareholders (1,212) (1,624) Funds from operations available to common share and unit holders (FFO) $ 93,386 $ 148,871 Weighted-average shares/units outstanding — basic (a) 173,979,997 173,042,591 Weighted-average shares/units outstanding — fully diluted (a) 180,256,697 175,969,844 (a) Includes common shares and partnership units outstanding through the years ended December 31, 2025 and December 31, 2024, respectively. 50 Item 7A.
During the year ended December 31, 2024, when compared to the year ended December 31, 2023, the change in investing cash flows was due to the following activities (in thousands): (Decrease) Increase Acquisitions of real estate $ 7,747 Capital expenditures and capitalized interest 26,700 Capital improvements/acquisition deposits/leasing costs (3,481) Joint venture investments (108,105) Proceeds from the sale of properties 79,063 Capital distributions from unconsolidated real estate ventures 52,803 Decrease in net cash used in investing activities $ 54,727 We generally fund our investment activity through the sale of real estate, property-level financing, credit facilities, senior unsecured notes, and construction loans.
During the year ended December 31, 2025, when compared to the year ended December 31, 2024, the change in investing cash flows was due to the following activities (in thousands): (Decrease) Increase Acquisitions of real estate $ (105,819) Capital expenditures and capitalized interest 16,364 Capital improvements/acquisition deposits/leasing costs (4,383) Joint venture investments 123,374 Proceeds from the sale of properties (81,546) Proceeds from note receivable 9,384 Capital distributions from unconsolidated real estate ventures (43,471) Increase in net cash used in investing activities $ (86,097) We generally fund our investment activity through the sale of real estate, property-level financing, unsecured and secured credit facilities, senior unsecured notes, and construction loans.
Development and Redevelopment Risk Development and Redevelopment projects are subject to a variety of risks, including construction delays, construction cost overruns, building moratoriums, inability to obtain financing on favorable terms, inability to lease space at projected rates, inability to enter into construction, development and other agreements on favorable terms, and unexpected environmental and other hazards.
These conditions would negatively affect our future net income and cash flows and could have a material adverse effect on our financial condition. 35 Development and Redevelopment Risk Development and Redevelopment projects are subject to a variety of risks, including construction delays, construction cost overruns, building moratoriums, inability to obtain financing on favorable terms, inability to lease space at projected rates, inability to enter into construction, development, redevelopment and other agreements on favorable terms, and unexpected environmental and other hazards.
If the recoverability assessment indicates that 35 the carrying value of a tested real estate investment is not recoverable from estimated undiscounted future cash flows, it is written down to its estimated fair value and an impairment is recognized.
The company may also utilize a market valuation approach, comparing the subject property to recent comparable market transactions in a similar location. If the recoverability assessment indicates that the carrying value of a tested real estate investment is not recoverable from estimated undiscounted future cash flows, it is written down to its estimated fair value and an impairment is recognized.
During the year ended December 31, 2024, when compared to the year ended December 31, 2023, the change in financing cash flows was due to the following activities (in thousands): (Decrease) Increase Proceeds from debt obligations $ 76,087 Repayments of debt obligations (172,395) Redemption of limited partnership units 5 Debt financing costs paid (1,963) Dividends and distributions paid 19,840 Other financing activities (657) Increase in net cash used in financing activities $ (79,083) 45 Capitalization Indebtedness The table below summarizes indebtedness under our unsecured debt at December 31, 2024 and December 31, 2023: December 31, 2024 December 31, 2023 (dollars in thousands) Balance: (a) Fixed rate $ 2,123,610 $ 1,985,000 Variable rate - unhedged (b) (c) 102,734 162,434 Total $ 2,226,344 $ 2,147,434 Percent of Total Debt: Fixed rate 95.4 % 92.4 % Variable rate - unhedged 4.6 % 7.6 % Total 100.0 % 100.0 % Weighted-average interest rate at period end: Fixed rate 6.2 % 5.1 % Variable rate - unhedged 6.5 % 7.1 % Total 6.2 % 5.2 % Weighted-average maturity in years: Fixed rate 3.8 3.8 Variable rate - unhedged 0.6 6.3 Total 3.7 4.0 (a) Consists of unpaid principal and does not reflect premium/discount or deferred financing costs.
During the year ended December 31, 2025, when compared to the year ended December 31, 2024, the change in financing cash flows was due to the following activities (in thousands): (Decrease) Increase Proceeds from debt obligations $ 116,296 Repayments of debt obligations (37,986) Debt financing costs paid (1,289) Dividends and distributions paid 11,492 Other financing activities (510) Increase in net cash provided by financing activities $ 88,003 46 Capitalization Indebtedness The table below summarizes indebtedness under our unsecured debt at December 31, 2025 and December 31, 2024: December 31, 2025 December 31, 2024 (dollars in thousands) Balance: (a) Fixed rate (b) (c) $ 2,385,934 $ 2,123,610 Variable rate (d) 178,014 102,734 Total $ 2,563,948 $ 2,226,344 Percent of Total Debt: Fixed rate 93.1 % 95.4 % Variable rate - unhedged 6.9 % 4.6 % Total 100.0 % 100.0 % Weighted-average interest rate at period end: Fixed rate 6.3 % 6.2 % Variable rate - unhedged 6.6 % 6.5 % Total 6.3 % 6.2 % Weighted-average maturity in years: Fixed rate 3.8 3.8 Variable rate - unhedged 0.6 0.6 Total 3.6 3.7 (a) Consists of unpaid principal and does not reflect premium/discount or deferred financing costs.
As of December 31, 2024, our consolidated debt consisted of (i) unsecured notes with an outstanding principal balance of $1,550.0 million, all of which are fixed rate borrowings, (ii) variable rate debt consisting of trust preferred securities that have been swapped to fixed rates with an outstanding principal balance of $78.6 million, (iii) a $600.0 million Credit Facility with no outstanding borrowings, (iv) a secured fixed rate term loan with an outstanding principal balance of $245.0 million, (v) a construction loan for the property at 155 King of Prussia Road with an outstanding balance of $32.7 million and (v) two unsecured term loans of $250.0 million and $70.0 million.
As of December 31, 2025, our consolidated debt consisted of (i) unsecured notes with an outstanding principal balance of $2,000.0 million, all of which are fixed rate borrowings, (ii) variable rate debt consisting of trust preferred securities that have been swapped to fixed rates with an outstanding principal balance of $78.6 million, (iii) a $600.0 million Credit Facility with no outstanding borrowings, (iv) a secured C-PACE loan for the property at 3151 Market with an outstanding principal balance of $57.3 million that has a fixed interest rate, (v) a construction loan for the property at 3025 JFK with an outstanding balance of $178.0 million that has an interest rate cap and (v) one unsecured term loan of $250.0 million.
See Note 4 “Investment in Unconsolidated Real Estate Ventures” to our Consolidated Financial Statements for further information. 41 LIQUIDITY AND CAPITAL RESOURCES General Our principal liquidity funding needs for the next twelve months are as follows: • normal recurring expenses; • capital expenditures, including capital and tenant improvements and leasing costs; • debt service and principal repayment obligations; • current development and redevelopment costs; • commitments to unconsolidated real estate ventures; • distributions to shareholders to maintain our REIT status; • possible acquisitions of properties, either directly or indirectly through the acquisition of equity interest therein; and • possible common share repurchases.
Gain (loss) on early extinguishment of debt The change in gain (loss) on early extinguishment of debt is related to the costs incurred as part of the payoff of the $245 million Secured Term Loan due 2028. 42 LIQUIDITY AND CAPITAL RESOURCES General Our principal liquidity funding needs for the next twelve months are as follows: • normal recurring expenses; • capital expenditures, including capital and tenant improvements and leasing costs; • debt service and principal repayment obligations; • current development and redevelopment costs; • commitments to unconsolidated real estate ventures and investment vehicles; • distributions to shareholders to maintain our REIT status; • possible acquisitions of properties, either directly or indirectly through the acquisition of equity interest therein; and • possible common share repurchases.
(5) Calculated on a weighted average basis. (6) For comparison purposes, we exclude new leases of space when the previous lease of such space ended more than 12 months from the signing date for the new leases.
(7) For comparison purposes, we exclude new leases of space when the previous lease of such space ended more than 12 months prior to the signing date for the new leases.
As of December 31, 2024, we had $90.2 million of cash and cash equivalents and $560.8 million of available borrowings under our unsecured credit facility, net of $39.2 million in letters of credit outstanding.
As of December 31, 2025, we had $32.3 million of cash and cash equivalents and $564.5 million of available borrowings under our unsecured credit facility, net of $35.5 million in letters of credit outstanding.
(7) Average annual rent represents total initial contractual rent under the applicable leases plus contractual fixed rent increases due under the applicable leases averaged over the total terms of the applicable leases.
(8) Average annual rent represents total initial contractual rent under the applicable leases (as impacted by free rent) plus contractual fixed rent increases due under the applicable leases averaged over the total terms (without regard to extension options) of the applicable leases.
In connection with the recapitalization, we recognized a one-time, non-cash gain of $53.8 million in connection with the derecognition of the negative investment balance in the Original MAP Venture.
In connection with the recapitalization, we recognized a one-time, non-cash gain of $53.8 million in connection with the derecognition of the negative investment balance in the Original MAP Venture. See Note 4 “Investment in Unconsolidated Real Estate Ventures” to our Consolidated Financial Statements for further information.
General & Administrative Expenses General and Administrative Expenses increase is primarily as a result of increased deferred compensation expenses. Provision for Impairment During the fourth quarter of 2024, we recognized a provision for impairment of $17.3 million on two office properties sold during the fourth quarter of 2024 located in our Austin, Texas segment.
See Note 3 “Real Estate Investments.” During the fourth quarter of 2024, we recognized a provision for impairment of $17.3 million on two office properties sold during the fourth quarter of 2024 located in our Austin, Texas segment.
If one or more rating 43 agencies were to downgrade our unsecured credit rating, our access to the unsecured debt market would be more limited and the interest rate under our unsecured credit facility and unsecured term loan would increase.
If one or more rating agencies were to downgrade our unsecured credit rating, our access to the unsecured debt market would be more limited and the interest rate under our unsecured credit facility and unsecured term loan would increase. The Parent Company unconditionally guarantees the Operating Partnership’s unsecured debt obligations, which, as of December 31, 2025, amounted to $2,328.6 million.
While we have experienced increased inflation, our Same Store Property Portfolio operating margins remained consistent at 63.1% for the twelve months ended December 31, 2024 and 2023, respectively, primarily due to the expense reimbursement provisions noted above.
We have experienced increased inflation, resulting in our Same Store Property Portfolio operating margins decreasing to 63.3% from 63.9% for the twelve months ended December 31, 2025 and 2024, respectively, primarily due to increased property operating expenses.
The Unsecured Term Loan has a scheduled maturity date of February 28, 2024 with an option to extend for twelve months and bears interest at Daily Simple SOFR plus 1.75% with a 0.10% SOFR adjustment. The Company exercised its 42 option to extend the Facility for an additional twelve months on January 24, 2024.
In January 2024, the Company executed its option to extend the 2023 Term Loan for an additional twelve months to February 28, 2025. The 2023 Term Loan bore interest at Daily Simple SOFR plus 1.90% with a 0.10% SOFR adjustment per year and was interest-only (payable monthly) through the maturity date.
Our accrued rent receivable allowance was $0.9 million or 0.5% of our accrued rent receivable balance as of December 31, 2024 compared to $2.7 million or 1.4% of our accrued rent receivable balance as of December 31, 2023. 34 If economic conditions deteriorate, including as a result of inflation and high interest rates we may experience increases in past due accounts, defaults, lower occupancy and reduced effective rents.
If economic conditions deteriorate, including as a result of inflation and high interest rates we may experience increases in past due accounts, defaults, lower occupancy and reduced effective rents.
The following table summarizes changes in our cash flows (in thousands): Year Ended December 31, Activity 2024 2023 (Decrease) Increase Operating $ 181,125 $ 177,273 $ 3,852 Investing (120,185) (174,912) 54,727 Financing (32,297) 46,786 (79,083) Net cash flows $ 28,643 $ 49,147 $ (20,504) Our principal source of cash flows is from the leasing of space at our Properties.
The following table summarizes changes in our cash flows (in thousands): Year Ended December 31, Activity 2025 2024 Variance Operating $ 116,701 $ 181,125 $ (64,424) Investing (206,282) (120,185) (86,097) Financing 55,706 (32,297) 88,003 Net cash flows $ (33,875) $ 28,643 $ (62,518) Our principal source of cash flows is from the leasing of space at our Properties.
Total Revenue Rents from the Total Portfolio decreased $(10.6) million primarily as a result of the following: • $6.6 million decrease due to the sales of 200 North Radnor Chester Road, Radnor, PA and 8521 Leesburg Pike, Vienna, VA in the fourth quarter of 2023 and T hree Barton Skyway, Austin, TX in the third quarter of 2023; • $3.3 million decrease due to the sale of five Class B office properties in the Plymouth Meeting Executive Center in Plymouth Meeting, PA in the third quarter of 2024; • $2.5 million decrease due to the early termination of a single tenant occupant at a property in our Austin, Texas segment in the third quarter of 2023; and • $7.3 million increase relate Recently Completed/Acquired Properties which comprise 250 King of Prussia Road, Radnor, PA, 155 King of Prussia Road, Radnor, PA and 2340 Dulles Corner Boulevard, Herndon VA.
Total Revenue Rents from the Total Portfolio decreased $11.7 million primarily as a result of the following: • $9.9 million decrease due to the sale of five Class B office properties in the Plymouth Meeting Executive Center in Plymouth Meeting, PA in the third quarter of 2024; • $12.6 million decrease due to the sale of One and Two Barton Skyway, Austin, TX in the fourth quarter of 2024; • Partially offset by $9.3 million increase related to our Recently Completed/Acquired Properties, which are comprised of 250 King of Prussia Road, Radnor, PA, 155 King of Prussia Road, Radnor, PA and the office portion of 3025 JFK Boulevard, Philadelphia, PA during 2025; and • $2.3 million increase related to the residential portion of 3025 JFK Boulevard, Philadelphia, PA, which was consolidated during the fourth quarter of 2025. 40 Other Revenue Other revenue decreased primarily due to the Company recognizing $6.5 million of insurance proceeds in connection with the resolution of a legal dispute that was settled during the third quarter 2024.
The Construction Loan has a scheduled maturity date of August 16, 2026 with an option to prepay at any time without a fee, premium or penalty. The Construction Loan bears interest at SOFR plus 2.5%. On April 12, 2024, we completed an underwritten offering of $400.0 million aggregate principal amount of our 8.875% Guaranteed Notes due 2029 (the “2029 Notes”).
The Company repaid the loan in full on its maturity date of February 28, 2025. On April 12, 2024, we completed an underwritten offering of $400.0 million aggregate principal amount of our 8.875% Guaranteed Notes due 2029 (the “2029 Notes”).
As a result of the downgrade, the interest rate on the 2028 Notes increased 25 basis points to 8.30% in April 2024 due to the coupon adjustment provisions within the 2028 Notes. 40 Equity in Loss of Unconsolidated Real Estate Ventures Equity in loss of real estate ventures increased primarily due to our recognition of an impairment charge on the properties in our Commerce Square Venture and JBG Venture.
Equity in Loss of Unconsolidated Real Estate Ventures Equity in loss of real estate ventures decreased primarily due to the Company's recognition of an impairment charge on the properties in the Commerce Square Venture in the third quarter of 2024.
As of December 31, 2024, the following active unconsolidated real estate venture development projects remain under construction in progress and we were proceeding on the following activity (dollars, in thousands): Property/Portfolio Name Location Completion Date Approximate Square Footage Estimated Costs (c) Amount Funded Construction Loan Financing Our Share Remaining to be Funded Partner's Share Remaining to be Funded 3025 JFK Boulevard (64%) Philadelphia, PA Q4 2023 (a) $ 320,111 $ 289,489 $ 186,727 $ 20,111 $ — 3151 Market Street (65%) Philadelphia, PA Q4 2024 441,000 $ 316,909 $ 207,733 $ 174,300 (b) $ — $ — One Uptown - Office (62%) Austin, TX Q1 2024 362,679 $ 201,616 $ 152,504 $ 121,650 $ — $ — One Uptown - Multifamily (50%) Austin, TX Q3 2024 341 Units $ 144,029 $ 128,984 $ 85,000 $ — $ — (a) Mixed used building with 428,000 rentable square feet consisting of 200,000 square feet of life science, 219,000 square feet of residential (326 units), and 9,000 square feet of retail.
As of December 31, 2025, the following active unconsolidated real estate venture development project remains under construction in progress and we were proceeding on the following activity (dollars, in thousands): Property/Portfolio Name (% of BDN Ownership) Location Completion Date Approximate Square Footage Estimated Costs (a) Amount Funded Construction Loan Financing Our Share Remaining to be Funded Partner's Share Remaining to be Funded One Uptown - Office (64%) Austin, TX Q1 2024 362,679 $ 206,400 $ 158,485 $ 121,650 $ — $ — (a) Estimated costs include base building costs plus projected tenant fit out costs for remaining vacancies.
Other/(Eliminations) also includes properties sold and properties classified as held for sale. (b) Pertains to Core Properties.
Other/(Eliminations) also includes properties sold, properties classified as held for sale, the parking operations of pre-development projects, the residential and retail components within University City in Philadelphia, Pennsylvania, the restaurant component of Cira Centre, the B.Labs incubator, remediation costs of insured events. (b) Pertains to Core Properties.

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