Shares of Brandywine Realty Trust (BDN) plummeted 5.31% in early trading on Thursday following the release of disappointing second-quarter 2025 financial results. The real estate investment trust, which focuses on office properties, reported a significant net loss and lowered its full-year guidance, raising concerns among investors about its near-term prospects.

Brandywine reported a net loss of $89 million, or $0.51 per diluted share, for the second quarter. This loss includes substantial non-cash impairment charges totaling $63.4 million, or $0.37 per share, related to portfolio assets in Austin, Texas. The company's funds from operations (FFO), a key metric for REITs, came in at $0.15 per diluted share, down from $0.22 in the same period last year. Revenue also declined to $120.6 million from $125.3 million a year earlier, reflecting challenges in the office real estate market.

Adding to investor concerns, Brandywine revised its 2025 FFO guidance downward to a range of $0.60 to $0.66 per share, compared to its previous guidance of $0.61 to $0.71. While the company highlighted that the new midpoint of $0.63 remains above consensus estimates, the lowered outlook suggests ongoing headwinds in the office sector. Despite reporting progress on its 2025 business plan and achieving over 98% of its speculative revenue target, the market's negative reaction indicates that investors remain cautious about Brandywine's ability to navigate the challenging office real estate landscape.