Brandywine Realty Trust (BDN) is one of the highest paying dividend stocks we cover. But a more important issue is whether it is one of the best dividend paying stocks we cover. We will explain why it is not in the following report.
Brandywine Realty Trust is a self-administered and self-managed real estate investment trust (REIT). Brandywine owns, develops, leases, and manages a portfolio of mostly commercial real estate assets. It makes investments in office, mixed-use, and industrial properties.
It was founded in 1985. It operates mainly in the Philadelphia, Washington D.C. and Austin markets, and is currently based in Radnor Pennsylvania. It is one of the largest, publicly traded, full-service, integrated real estate companies in the U.S.
Brandywine’s price peaked at the beginning of 2007 at a little over $35, fell precipitously during the meltdown of 2008, and has never really come back. It currently sits at a little under $15. There is good reason for this.
Brandywine’s performance has been lackluster. It sales have been flat over this period, but it sales per share have declined significantly since it has issued a vast number of new shares. Issuing shares during and after a firm’s stock price has fallen precipitously is usually not a good practice, it is usually a sign of desperation, and it is not indicative of good management.
Furthermore, it cut its dividend significantly during the crisis and has not increased it since. The one favorable comment we can make is the following. Brandywine’s free cash flows (i.e. cash flows from operations + cash flows from investment) have been positive over most of this period.
Our overall assessment of this firm’s fundamentals is not high. We currently rate its fundamentals a “D” (we have four ratings: A, B, C, and D; D is the lowest). Brandywine has a poor track record of creating value. And we would not trust our money to this firm. Needless to say, we would not consider Brandywine one of our top dividend paying stocks.
Stat Sheet – Brandywine Realty Trust 4/8/16
|Industry||Real Estate Operations|
|Market Cap||$ 2,471|
|Growth Prospects||Below Average|
|Price Volatility||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
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