BDN - Brandywine Realty: Is The 13.6% Dividend Yield From Office Properties Safe?
2024-02-03 10:31:34 ET
Summary
- Brandywine Realty is currently paying out a substantial 13.6% dividend yield.
- This distribution is 180% covered by fiscal 2023 fourth quarter FFO.
- An extremely staggered debt maturity profile and a $600 million revolver will help BDN navigate 2024 with another dividend reduction not likely.
Brandywine Realty's ( BDN ) 21% dividend cut in September last year brought the office property owner in line with peers across a space that has become the poster boy for the casualties experienced since the Fed embarked on a multi-year fight with inflation. Peers like Hudson Pacific Properties ( HPP ) and Office Properties Income ( OPI ) have essentially suspended their payouts entirely with the sector now facing an amalgamation of headwinds. Higher base interest rates have rendered debt expensive and meant a tapering of FFO as rising office vacancies from the new post-pandemic work zeitgeist add further pressure. The REIT last paid a quarterly cash dividend of $0.15 per share , unchanged sequentially and $0.60 annualized for what's currently a 13.6% dividend yield. This is down from a peak of 21% in the summer of 2023 but still far above its historical average. ...
Brandywine Realty: Is The 13.6% Dividend Yield From Office Properties Safe?