MLV Reaffirms Buy On Brandywine Realty Following 3Q14 Results

In a research note published yesterday, MLV analyst Jonathan Petersen reaffirmed a Buy rating on Brandywine Realty Trust (NYSE:BDN) with an $18 price target, following the company’s release of its third-quarter results.

Petersen wrote, “BDN reported 3Q14 core FFO/share of $0.36, in line with our estimate and consensus. Management introduced 2015 FFO/sh guidance of $1.38-$1.48, which is in line with our estimate at the midpoint, but a penny below consensus. Same store NOI moderated to +4.2%, compared to +6.7% last quarter. That said, we view a +4.2% result as very positive considering the stagnant rent and occupancy levels in the Philadelphia office market. Occupancy ticked down 40 bps in the quarter, but the percent leased increased 80 bps, suggesting that strong NOI growth will continue in the near-term. Leasing spreads were very strong at +8.4% on a cash basis, compared to -4.1% over the prior four quarters. We expect modest outperformance tomorrow due to the solid underlying fundamentals. We also believe that 2015 guidance being in line is a positive as many investors we have spoken with recently were expecting BDN to issue guidance below the street due to the negative impact of the recent debt and equity offerings.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jonathan Petersen has a total average return of 3.8% and a 60% success rate. Petersen has a -2.5% average return when recommending BDN, and is ranked #1435 out of 3356 analysts.

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