Brandywine Realty Trust (BDN)

Risks

• Adverse economic and geopolitical conditions could have a material adverse effect on our results of operations, financial condition and our ability to pay distributions to our shareholders.
• Our performance is dependent upon the economic conditions of the markets in which our properties are located.
• We may suffer adverse consequences due to the financial difficulties, bankruptcy or insolvency of our tenants.
• We may experience increased operating costs, which might reduce our profitability.
• Our investment in property development or redevelopment may be more costly or difficult to complete than we anticipate.
• Our development projects and third party property management business may subject us to certain liabilities.
• Our development projects may be dependent on strategic alliances with unaffiliated third parties.
• We face risks associated with the development of mixed-use commercial properties.
• We face risks associated with property acquisitions.
• Acquired properties may subject us to known and unknown liabilities.
• We have agreed not to sell certain of our properties and to maintain indebtedness subject to guarantees.
• We may be unable to renew leases or re-lease space as leases expire; certain leases may expire early.
• We face significant competition from other real estate developers.
• Property ownership through unconsolidated real estate ventures may limit our ability to act exclusively in our interest.
• Preferred equity, mezzanine loans, and other investments that are subordinated or otherwise junior in an issuer’s capital structure and that involve privately negotiated structures will expose us to greater risk of loss.
• Because real estate is illiquid, we may be unable to sell properties when in our best interest.
• Our property taxes could increase due to property tax rate changes or reassessment, which would adversely impact our cash flows.
• Changes in tax rates and regulatory requirements may adversely affect our cash flow and results of operations.
• Potential liability for environmental contamination could result in substantial costs.
• Americans with Disabilities Act compliance could be costly.
• A pandemic, epidemic or outbreak of a contagious disease, such as the ongoing COVID-19 pandemic, could adversely affect us.
• We face possible risks associated with the physical effects of climate change.
• 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.
• Failure of the Operating Partnership (or a subsidiary partnership or unconsolidated real estate venture) to be treated as a partnership would have serious adverse consequences to our shareholders.
• To maintain our REIT status, we may be forced to borrow funds on a short-term basis during unfavorable market conditions.
• We may pay some taxes even if we qualify as a REIT, which will reduce the cash available for distribution to our shareholders.
• Legislation that modifies the rules applicable to partnership tax audits may affect us.
• Legislative or regulatory tax changes related to REITs could materially and adversely affect our business.
• 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.
• Failure to obtain the tax benefits and remain compliant within Qualified Opportunity Zones and Keystone Opportunity Zones may have adverse consequences.
• Certain limitations will exist with respect to a third party’s ability to acquire us or effectuate a change in control.
• We are dependent upon our key personnel.
• Our ability to make distributions is subject to various risks.
• We face possible federal, state and local tax audits.
• Many factors can have an adverse effect on the market value of our securities.
• Additional issuances of equity securities may be dilutive to shareholders.
• The issuance of preferred securities may adversely affect the rights of holders of our common shares.
• We may incur impairment charges.
• An increase in interest rates would 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.
• Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our equity shares or debt securities.
• The terms and covenants relating to our indebtedness could adversely impact our economic performance.
• A downgrading of our debt could subject us to higher borrowing costs.
• Data security breaches may cause damage to our business and reputation.
• 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.
• Some potential losses are not covered by insurance.