Truist Securities downgraded Brandywine Realty Trust (NYSE:BDN) to Hold from Buy and lowered its price target to $4.00 from $5.00, pushing shares down more than 2% on Tuesday.
The firm said slower development lease-up and higher interest rates had pressured Brandywine’s earnings and financial leverage. While stabilization and refinancing of projects could support stronger results in 2026, analysts expected investor focus to shift toward the company’s largest tenant, which accounts for 4.8% of total NOI, vacating in 2027.
Truist warned there was a strong chance of another dividend cut by that time, if not earlier. The firm noted that while office REITs had rallied in recent weeks, slowing job growth and expectations for higher long-term interest rates posed ongoing risks.
