I’ve made a couple of purchases of BDN this month at $4.57 & $4.21. It closed today at $4.13 and traded as low as $4.11. While it is not 100% offices, it has a lot of offices mostly in the Philly area.
Its 4Q2022 financial supplemental report is below:
Supplemental Q4 2022 Master.xlsx (brandywinerealty.com)
One interesting thing in the supplemental is a cash sources and uses tables.
Sources - in millions
CF after interest payments - $175
Secured Term Loan, Net - $236
Proceeds from Asset Sales - $120
Decrease in Cash on Hand - $18
LOC Reduction - ($84)
Total Sources - $465
Uses - Millions
Dividends - $132
Contributions to JV’s - $35
Rev Maintaining CAPEX - $34
Rev Creating CAPEX - $60
Devel./Redevel. Projects - $150
Bond Redemption - $54
Total Uses - $465
If the above table prove anywhere near accurate for the year, BDN is a great bargain.
With a closing price of $4.13 the yield is currently 18.4%. The current dividend took 84.6% of 4Q22 FAD and 83.9% for the year. The 2022 tax treatment was 62.1% ordinary income and 37.9% LTCG.
A dividend cut appears possible to me, but not likely.
I am looking at loading up the truck on this one.