Brandywine Realty Trust (BDN) is a Philadelphia-based REIT that owns and operates high-quality office and mixed-use properties in major markets like Philadelphia, Washington, D.C., and Austin. As a REIT, Brandywine historically distributed at least 90% of its taxable income as dividends, making it a popular high-yield income stock. The company built a large portfolio (over 70 properties and ~13 million square feet) in these urban centers and demonstrated resilience through 2024 with solid leasing activity and strategic asset management.

However, on September 26, 2025, Brandywine announced a major dividend cut, slashing its quarterly payout to 0.08 per share (from 0.15). This 47% reduction will free up roughly 50 million in cash annually for Brandywine to invest in its portfolio and pay down debt, a prudent move that could strengthen its balance sheet and potentially boost the stock’s long-term performance.

Despite these long-term benefits, the dividend cut nearly halves BDN’s yield, undermining its ultra-high income appeal. This directly conflicts with the Fly High portfolio’s focus on sustainable, high-yield dividends. Accordingly, we are rotating Brandywine Realty Trust out of the Fly High portfolio – its sharply reduced dividend no longer aligns with our strategy, even if the cut may help the company’s stock price in the long run.

URLs:

Brandywine Realty Trust Website

Brandywine Realty Trust LinkedIn Profile

Reminder: past performance is not indicative of how an investment will perform in the future, before making any investment decisions based on this information, and/or the information contained on the website, refer to the TERMS OF SERVICES.

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