Breaking News

Tweet TWEET

Brandywine Realty Trust Announces $0.39 FFO per Diluted Share for Third Quarter 2012

   Brandywine Realty Trust Announces $0.39 FFO per Diluted Share for Third
                                 Quarter 2012

Increases 2012 FFO Guidance Range to $1.33 to $1.36 per Diluted Share

Provides Initial 2013 FFO Guidance of $1.38 to $1.46 per Diluted Share

PR Newswire

RADNOR, Pa., Oct. 24, 2012

RADNOR, Pa., Oct. 24, 2012 /PRNewswire/ --Brandywine Realty Trust (NYSE:BDN),
a real estate investment trust focused on the ownership, management and
development of urban town center and suburban office properties in the
mid-Atlantic region and other select markets throughout the United States,
today reported its financial and operating results for the three and
nine-month periods ended September 30, 2012.

"As we approach the conclusion of 2012, we can look back on this past quarter
and past nine months with a degree of satisfaction in all we have
accomplished," stated Gerard H. Sweeney, President and Chief Executive Officer
of Brandywine Realty Trust. "Our leasing and property management teams
continue to improve our operating performance and move our rental rates upward
as we take advantage of our strong real estate platform and tenants' desire
for efficient real estate solutions. 2012 investment activity has been
particularly productive as we reached our expanded sales target, added an
attractive asset to our metropolitan DC joint venture and moved forward to
harvest value from our existing land bank. In line with prior quarters, we
are maintaining ample liquidity and managing our balance sheet to address all
opportunities and needs. Collectively, these activities position us favorably
for the balance of this year and into 2013. As a result, we are increasing
our previously issued 2012 FFO guidance to now be in a range of $1.33 to $1.36
per diluted share and are providing initial 2013 FFO guidance of $1.38 to
$1.46 as we approach 2013 with increased confidence."

Financial Highlights – Third Quarter

  oNet income allocated to common shares totaled $13.9 million or $0.10 per
    diluted share in the third quarter of 2012 compared to $4.1 million or
    $0.03 per diluted share in the third quarter of 2011.
  oFunds from operations available to common shares and units (FFO) in the
    third quarter of 2012 totaled $57.7 million or $0.39 per diluted share
    compared to $60.3 million or $0.41 per diluted share in the third quarter
    of 2011. Our third quarter 2012 FFO payout ratio was 38.5% ($0.15 common
    share distribution / $0.39 FFO per diluted share).
  oIn the third quarter of 2012, we incurred $10.5 million of revenue
    maintaining capital expenditures which along with other adjustments to
    FFO, resulted in $30.2 million of cash available for distribution (CAD) or
    $0.21 per diluted share compared to $10.1 million of CAD or $0.07 per
    diluted share in the third quarter of 2011 when we incurred $33.1 million
    of revenue maintaining capital expenditures. Our third quarter 2012 CAD
    payout ratio was 71.4% ($0.15 common share distribution / $0.21 CAD per
    diluted share).

Financial Highlights – Nine Months

  oNet income allocated to common shares totaled $22.6 million or $0.16 per
    diluted share in the first nine months of 2012 compared to a net loss of
    ($6.6 million) or ($0.05) per diluted share in the first nine months of
    2011.
  oFFO available to common shares and units in the first nine months of 2012
    totaled $149.4 million or $1.02 per diluted share compared to $156.0
    million or $1.07 per diluted share in the first nine months of 2011. Our
    FFO payout ratio for the first nine months of 2012 was 44.1% ($0.45 common
    share distribution / $1.02 FFO per share).
  oIn the first nine months of 2012, we incurred $34.5 million of revenue
    maintaining capital expenditures which along with other adjustments to
    FFO, resulted in $87.1 million of CAD or $0.60 per diluted share compared
    to $56.0 million of CAD or $0.40 per diluted share for the first nine
    months of 2011 when we incurred $74.4 million of revenue maintaining
    capital expenditures. Our CAD payout ratio for the first nine months of
    2012 was 75.0% ($0.45 common share distribution / $0.60 CAD per diluted
    share).

Portfolio Highlights

  oIn the third quarter of 2012, our net operating income (NOI) excluding
    termination revenues and other income items increased 0.2% on a GAAP basis
    and 0.9% on a cash basis for our 216 same store properties, which were
    86.5% and 85.5% occupied on September 30, 2012 and September 30, 2011,
    respectively. For the first nine months of 2012, our net operating income
    (NOI) excluding termination revenues and other income items have increased
    2.3% on a GAAP basis and 1.0% on a cash basis.
  oDuring the third quarter of 2012, we commenced occupancy on 1,212,679
    square feet of total leasing activity including 701,961 square feet of
    renewals, 399,008 square feet of new leases and 111,710 square feet of
    tenant expansions. We have an additional 553,801 square feet of executed
    new leasing scheduled to commence subsequent to September 30, 2012.
  oDuring the third quarter of 2012, we achieved a 60.6% tenant retention
    ratio in our core portfolio with negative net absorption of 129,364 square
    feet, bringing year-to-date tenant retention to 65.1%. During the third
    quarter of 2012, we experienced a 3.6% increase on our renewal rental
    rates and an 8.0% increase on our new lease/expansion rental rates, both
    on a GAAP basis.
  oAt September 30, 2012, our core portfolio of 218 properties comprising
    24.3 million square feet was 86.3% occupied and 88.6% leased (reflecting
    new leases commencing after September 30, 2012).

Investment Highlights

  oDuring the third quarter of 2012, we completed the previously disclosed
    disposition of Oaklands Corporate Center, an 81.6% leased, eleven-property
    flex/office portfolio totaling 466,719 square feet in Exton, Pennsylvania
    for $52.7 million or $113 per square foot, and recorded a $9.9 million
    gain on the sale. We used the net proceeds from this sale for general
    corporate purposes.
  oDuring the third quarter of 2012 as previously disclosed, our
    Brandywine-AI Joint Venture completed the acquisition of Station Square, a
    92.8% leased, three-property office portfolio totaling 499,395 square feet
    in Silver Spring, Maryland for $120.6 million, or $241 per square foot,
    using a $66.5 million seven-year, 3.22% interest-only, non-recourse
    financing and $54.1 million contributed pro rata by the two partners. We
    funded our 50% share from available corporate funds.
  oDuring the third quarter of 2012 as previously disclosed, we contributed a
    land parcel to a 50/50 joint venture we formed with Toll Brothers, Inc.
    ("Toll") to build 398 residential units at 134 Plymouth Road in Plymouth
    Meeting, Pennsylvania. Toll matched Brandywine's land contribution with a
    $15.5 million cash contribution. Site engineering, planning, and
    architecture have begun and the groundbreaking is projected to occur in
    the first half of 2013 with completion in 2015 and stabilization in 2016.
    Total project costs inclusive of land are estimated to be $77.0 million
    with the $46.0 million balance expected to be funded through third-party
    construction financing and/or additional partner contributions.
  oWe are currently proceeding with the $18.5 million redevelopment of 660
    West Germantown Pike, a 154,392 square foot office building located in
    Plymouth Meeting, Pennsylvania that we acquired vacant in the first
    quarter of 2012 for $9.1 million. We have funded $9.8 million to date and
    plan to fund the remaining $8.7 million by mid-2013 as we complete the
    lease-up of this redevelopment. As of September 30, 2012, the property
    was 38.2% occupied and 77.5% leased.

Capital Markets Highlights

  oAt September 30, 2012, our net debt to gross assets measured 42.4%
    reflecting $241.6 million of cash and cash equivalents. We currently have
    no outstanding balance on our $600.0 million unsecured revolving credit
    facility.
  oFor the quarter ended September 30, 2012, we achieved a 2.5 EBITDA to
    interest coverage ratio and a 7.2 ratio of net debt to annualized
    quarterly EBITDA based on consolidated EBITDA excluding non-recurring
    items, and inclusive of our pro rata share of unconsolidated EBITDA,
    interest and net debt.

Distributions

On September 11, 2012, our Board of Trustees declared a quarterly dividend
distribution of $0.15 per common share that was paid on October 19, 2012 to
shareholders of record as of October 5, 2012. Our Board also declared
quarterly dividend distributions of $0.460938 per 7.375% Series D Cumulative
Redeemable Preferred Share and $0.43125 per 6.90% Series E Cumulative
Redeemable Preferred Share that were paid on October 15, 2012 to holders of
record as of September 30, 2012 of the Series D and Series E Preferred Shares,
respectively.

2012 Earnings and FFO Guidance

Based on current plans and assumptions and subject to the risks and
uncertainties more fully described in our Securities and Exchange Commission
filings, we are increasing our previously issued guidance for 2012 FFO per
diluted share to be in a range of $1.33 to $1.36 versus the prior range of
$1.32 to $1.36. This guidance is provided for informational purposes and is
subject to change. The following is a reconciliation of the calculation of
2012 FFO per diluted share and earnings per diluted share:

Guidance for 2012                                          Range or Value
 Earnings (loss) per diluted share allocated to common     $ 0.10 to $ 0.13
 shareholders
 Less: gains on sales of real estate                       (0.23)    (0.23)
 Plus: real estate depreciation and amortization          1.46      1.46
 FFO per diluted share                                     $ 1.33 to $ 1.36

Our 2012 FFO guidance does not include income arising from the sale of
undepreciated real estate. Our 2012 earnings and FFO per diluted share each
reflect $0.08 per diluted share of non-cash income attributable to the second
of five annual recognitions of 20% of the net benefit of the previously
disclosed rehabilitation tax credit financing on the 30^th Street Post
Office. Other key assumptions include occupancy improving to 88.0% by
year-end 2012 with 90.0% leased, a 1.0% – 2.0% increase (GAAP) in overall
lease rates, a resulting 2.5% – 3.0% increase in 2012 same store NOI (GAAP),
no additional capital markets activity, $175.8 million of completed sales
activity and 146.5 million fully diluted weighted average shares.

2013 Earnings and FFO Guidance

Based on current plans and assumptions and subject to the risks and
uncertainties more fully described in our Securities and Exchange Commission
filings, we estimate that full year 2013 FFO per diluted share will be in a
range of $1.38 to $1.46. This guidance is provided for informational purposes
and is subject to change. The following is a reconciliation of the
calculation of 2013 FFO per diluted share and earnings per diluted share:

Guidance for 2013                                           Range or Value
 Earnings (loss) per diluted share allocated to common      $(0.06) to $ 0.02
 shareholders
 Plus: real estate depreciation and amortization           1.44        1.44
 FFO per diluted share                                     $ 1.38  to $ 1.46

Our 2013 FFO guidance does not include income arising from the sale of
undepreciated real estate. Our 2013 earnings and FFO per diluted share each
reflect $0.08 per diluted share of non-cash income attributable to the third
of five annual recognitions of 20% of the net benefit of the rehabilitation
tax credit financing on the 30^th Street Post Office. Other key assumptions
include occupancy improving to 90.0% by year-end 2013 with 92.0% leased, a
3.0% – 5.0% increase (GAAP) in overall lease rates, a resulting 3.0% – 5.0%
increase in 2013 same store NOI (GAAP), no additional capital markets
activity, $100.0 million of projected (net) sales activity and 147.0 million
fully diluted weighted average shares.

Non-GAAP Supplemental Financial Measures

We compute our financial results in accordance with generally accepted
accounting principles (GAAP). Although FFO, NOI and CAD are non-GAAP
financial measures, we believe that FFO, NOI and CAD calculations are helpful
to shareholders and potential investors and are widely recognized measures of
real estate investment trust performance. At the end of this press release,
we have provided a reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP measure.

Funds from Operations (FFO)

We compute FFO in accordance with standards established by the National
Association of Real Estate Investment Trusts (NAREIT), which may not be
comparable to FFO reported by other REITs that do not compute FFO in
accordance with the NAREIT definition, or that interpret the NAREIT definition
differently than us. NAREIT defines FFO as net income (loss) before
non-controlling interests and excluding gains (losses) on sales of depreciable
operating property, impairment losses on depreciable consolidated real estate,
impairment losses on investments in unconsolidated real estate ventures and
extraordinary items (computed in accordance with GAAP); plus real estate
related depreciation and amortization (excluding amortization of deferred
financing costs), and after similar adjustments for unconsolidated joint
ventures. Net income, the GAAP measure that we believe to be most directly
comparable to FFO, includes depreciation and amortization expenses, gains or
losses on property sales, extraordinary items and non-controlling interests.
To facilitate a clear understanding of our historical operating results, FFO
should be examined in conjunction with net income (determined in accordance
with GAAP) as presented in the financial statements included elsewhere in this
release. FFO does not represent cash flow from operating activities
(determined in accordance with GAAP) and should not be considered to be an
alternative to net income (loss) (determined in accordance with GAAP) as an
indication of our financial performance or to be an alternative to cash flow
from operating activities (determined in accordance with GAAP) as a measure of
our liquidity, nor is it indicative of funds available for our cash needs,
including our ability to make cash distributions to shareholders.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure equal to net income available to common
shareholders, the most directly comparable GAAP financial measure, plus
corporate general and administrative expense, depreciation and amortization,
interest expense, non-controlling interests and losses from early
extinguishment of debt, less interest income, development and management
income, gains from property dispositions, gains on sale from discontinued
operations, gains on early extinguishment of debt, income from discontinued
operations, income from unconsolidated joint ventures and non-controlling
interests. In some cases, we also present NOI on a cash basis, which is NOI
after eliminating the effect of straight-lining of rent and deferred market
intangible amortization. NOI presented by us may not be comparable to NOI
reported by other REITs that define NOI differently. NOI should not be
considered an alternative to net income as an indication of our performance,
or as an alternative to cash flow from operating activities as a measure of
our liquidity or ability to make cash distributions to shareholders.

Cash Available for Distribution (CAD)

CAD is a non-GAAP financial measure that is not intended as an alternative to
cash flow from operating activities as determined under GAAP. CAD is
presented solely as a supplemental disclosure with respect to liquidity
because we believe it provides useful information regarding our ability to
fund our distributions. Because other companies do not necessarily calculate
CAD the same way as we do, our presentation of CAD may not be comparable to
similarly titled measures provided by other companies.

Revenue Maintaining Capital Expenditures

Revenue maintaining capital expenditures, a non-GAAP financial measure, are a
component of our CAD calculation and represent the portion of capital
expenditures required to maintain our current level of funds available for
distribution. Revenue maintaining capital expenditures include current tenant
improvement and allowance expenditures for all tenant spaces that have been
owned for at least one year, and that were not vacant during the twelve-month
period prior to the date that the tenant improvement or allowance expenditure
was incurred. Revenue maintaining capital expenditures also include other
expenditures intended to maintain our current revenue base. Accordingly, we
exclude capital expenditures related to development and redevelopment
projects, as well as certain projects at our core properties that are intended
to attract prospective tenants in order to increase revenues and/or occupancy
rates.

Third Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, October 25, 2012 at 9:00 a.m.
EDT. The conference call can be accessed by calling 1-800-683-1525 and
referencing conference ID #29831734. Beginning two hours after the conference
call, a taped replay of the call can be accessed 24 hours a day through
Thursday, November 8, 2012 by calling 1-855-859-2056 and providing access code
29831734. In addition, the conference call can be accessed via a webcast
located on our website at www.brandywinerealty.com.

We have prepared a supplemental information package that includes financial
results and operational statistics related to the third quarter earnings
report. The supplemental information package is available in the "Investor
Relations – Financial Reports" section of our website at
www.brandywinerealty.com.

Looking Ahead - Fourth Quarter 2012 Conference Call

We anticipate we will release our fourth quarter 2012 earnings on Wednesday,
February 6, 2013, after the market close and will host our fourth quarter 2012
conference call on Thursday, February 7, 2013, at 9:00 a.m. EST. We expect to
issue a press release in advance of these events to reconfirm the dates and
times and provide all related information.

About Brandywine Realty Trust

Brandywine Realty Trust is one of the largest, publicly traded, full-service,
integrated real estate companies in the United States. Organized as a real
estate investment trust and operating in select markets, Brandywine owns,
leases and manages an urban, town center and suburban office portfolio
comprising 295 properties and 34.0 million square feet, including 219
properties and 24.5 million square feet owned on a consolidated basis and 57
properties and 7.0 million square feet in 19 unconsolidated real estate
ventures all as of September 30, 2012. For more information, please visit
www.brandywinerealty.com.

Forward-Looking Statements

Estimates of future earnings per share, FFO per share, common share dividend
distributions and certain other statements in this release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause our and our
affiliates' actual results, performance, achievements or transactions to be
materially different from any future results, performance, achievements or
transactions expressed or implied by such forward-looking statements. Such
risks, uncertainties and other factors relate to, among others: our ability to
lease vacant space and to renew or relet space under expiring leases at
expected levels; competition with other real estate companies for tenants; the
potential loss or bankruptcy of major tenants; interest rate levels; the
availability of debt, equity or other financing; risks of acquisitions,
dispositions and developments, including the cost of construction delays and
cost overruns; unanticipated operating and capital costs; our ability to
obtain adequate insurance, including coverage for terrorist acts; dependence
upon certain geographic markets; and general and local economic and real
estate conditions, including the extent and duration of adverse changes that
affect the industries in which our tenants operate. Additional information on
factors which could impact us and the forward-looking statements contained
herein are included in our filings with the Securities and Exchange
Commission, including our Form 10-K for the year ended December 31, 2011. We
assume no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events except as required by law.

BRANDYWINE REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(in thousands)
                                          September 30,      December 31,
                                          2012               2011
                                          (unaudited)
ASSETS
Real estate investments:
      Rental properties                   $   4,660,289   $   4,793,080
      Accumulated depreciation            (925,342)          (865,710)
                                          3,734,947          3,927,370
      Construction-in-progress            43,449             25,083
      Land inventory                      95,500             109,008
                                          3,873,896          4,061,461
Cash and cash equivalents                 241,616            410
Accounts receivable, net                  13,394             14,718
Accrued rent receivable, net              117,306            108,101
Investment in real estate ventures        179,037            115,807
Deferred costs, net                       119,182            115,362
Intangible assets, net                    52,575             70,515
Notes receivable                          7,226              18,186
Other assets                              62,494             53,158
      Total assets                        $   4,666,726   $   4,557,718
LIABILITIES AND EQUITY
Mortgage notes payable, including         $     502,123  $     511,061
premiums
Unsecured credit facility                 -                  275,500
Unsecured term loan                       600,000            37,500
Unsecured senior notes, net of discounts  1,404,466          1,569,934
Accounts payable and accrued expenses     80,554             69,929
Distributions payable                     24,820             23,895
Deferred income, gains and rent           80,748             99,569
Acquired lease intangibles, net           29,824             35,106
Other liabilities                         59,982             45,528
      Total liabilities                   2,782,517          2,668,022
Brandywine Realty Trust's equity:
 Preferred shares - Series C              -                  20
 Preferred shares - Series D              23                 23
 Preferred shares - Series E              40                 -
 Common shares                            1,432              1,424
 Additional paid-in capital               2,828,722          2,776,197
 Deferred compensation payable in common  5,352              5,631
 stock
 Common shares held in grantor trust      (5,352)            (5,631)
 Cumulative earnings                      510,093            477,338
 Accumulated other comprehensive loss     (20,456)           (6,079)
 Cumulative distributions                 (1,467,058)        (1,392,332)
      Total Brandywine Realty Trust's     1,852,796          1,856,591
      equity
Non-controlling interests                 31,413             33,105
      Total equity                        1,884,209          1,889,696
      Total liabilities and equity        $   4,666,726   $   4,557,718



BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share data)
                          Three Months Ended         Nine Months Ended
                          September 30,              September 30,
                          2012         2011          2012         2011
Revenue
 Rents                    $       $        $       $     
                          113,989      116,251       343,260      346,579
 Tenant reimbursements    20,695       19,010        58,308       59,187
 Termination fees         931          157           2,522        2,673
 Third party management
 fees, labor              3,007        3,028         9,021        8,514
 reimbursement and
 leasing
 Other                    1,761        955           4,259        3,314
     Total revenue        140,383      139,401       417,370      420,267
Operating Expenses
 Property operating       40,705       40,788        118,068      124,023
 expenses
 Real estate taxes        14,064       13,204        42,292       40,699
 Third party management   1,298        1,379         3,812        4,395
 expenses
 Depreciation and         48,738       51,943        147,618      157,157
 amortization
 General &                6,080        6,177         18,209       18,311
 administrative expenses
     Total operating      110,885      113,491       329,999      344,585
     expenses
Operating income          29,498       25,910        87,371       75,682
Other income (expense)
 Interest income          311          523           2,635        1,385
 Historic tax credit      11,840       12,026        11,840       12,026
 transaction income
 Interest expense         (32,620)     (32,346)      (99,745)     (99,477)
 Deferred financing       (1,218)      (1,846)       (3,790)      (3,844)
 costs
 Interest expense -       (230)        -             (608)        -
 financing obligation
 Equity in income of      500          418           1,382        2,739
 real estate ventures
 Net gain on sale of
 interests in real        -            -             -            2,791
 estate
 Loss on real estate      (950)        -             (950)        -
 venture formation
 Gain (loss) on early     (51)         176           (1,549)      (580)
 extinguishment of debt
Income (loss) from        7,080        4,861         (3,414)      (9,278)
continuing operations
Discontinued operations:
 Income from              69           1,750         1,867        5,329
 discontinued operations
 Net gain on disposition
 of discontinued          9,940        -             34,774       3,836
 operations
Total discontinued        10,009       1,750         36,641       9,165
operations
Net income (loss)         17,089       6,611         33,227       (113)
Net (income) loss from
discontinued operations
attributable
 to non-controlling       (182)        (86)          (669)        (234)
 interests - LP units
Net (income) loss from
continuing operations
attributable to
 non-controlling         (78)         (276)         244          88
 interests - LP units
Net (income) loss
attributable to           (260)        (362)         (425)        (146)
non-controlling
interests
Net income (loss)
attributable to           16,829       6,249         32,802       (259)
Brandywine Realty Trust
Preferred share           (2,785)      (1,998)       (7,832)      (5,994)
distributions
Preferred share           -            -             (2,090)      -
redemption charge
Amount allocated to
unvested restricted       (95)         (121)         (286)        (384)
shareholders
Net income (loss)         $       $        $       $     
attributable to common     13,949       4,130      22,594      (6,637)
shareholders
PER SHARE DATA
Basic income (loss) per   $       $        $       $     
common share                0.10      0.03       0.16      (0.05)
Basic weighted-average    143,424,485  135,562,487   143,182,911  135,164,424
shares outstanding
Diluted income (loss)     $       $        $       $     
per common share            0.10      0.03       0.16      (0.05)
Diluted weighted-average  144,128,010  136,841,451   143,182,911  135,164,424
shares outstanding

BRANDYWINE REALTY TRUST
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
(unaudited, in thousands, except share and per share data)
                           Three Months Ended         Nine Months Ended
                           September 30,              September 30,
                           2012         2011          2012         2011
Reconciliation of Net
Income (loss) to Funds
from Operations:
Net income (loss)          $        $        $       $     
attributable to common     13,949      4,130         22,594       (6,637)
shareholders
Add (deduct):
      Net income (loss)
      attributable to
      non-controlling      78           276           (244)        (88)
      interests - LP
      units
      Amount allocated to
      unvested restricted  95           121           286          384
      shareholders
      Net gain on sale of
      interests in real    -            -             -            (2,791)
      estate
      Loss on real estate  950          -             950          -
      venture formation
      Net income from
      discontinued
      operations
      attributable to      182          86            669          234
      non-controlling
      interests - LP
      units
      Net loss on
      disposition of       (9,940)      -             (34,774)     (3,836)
      discontinued
      operations
      Depreciation and
      amortization:
         Real property
        - continuing       39,628       39,275        117,253      119,619
        operations
         Leasing costs
        (includes
        acquired           9,067        12,378        30,164       36,698
        intangibles) -
        continuing
        operations
         Real property
        - discontinued     -            2,230         2,459        6,664
        operations
         Leasing costs
        (includes
        acquired           6            66            291          193
        intangibles) -
        discontinued
        operations
         Company's
        share of
        unconsolidated     3,971        2,128         10,528       6,553
        real estate
        ventures
Funds from operations      $        $         $        $    
                           57,986      60,690       150,176      156,993
      Funds from
      operations
      allocable to         (254)        (359)         (769)        (983)
      unvested restricted
      shareholders
Funds from operations      $        $         $        $    
available to common share  57,732      60,331       149,407      156,010
and unit holders (FFO)
FFO per share - fully      $       $        $       $     
diluted                     0.39        0.41         1.02       1.07
Weighted-average
shares/units outstanding   146,785,731  146,651,211   146,408,921  146,341,612
- fully diluted
Distributions paid per     $       $        $       $     
common share                0.15        0.15         0.45       0.45
Payout ratio of FFO
(Distributions paid per    38.5%        36.6%         44.1%        42.1%
common share divided /
FFO per diluted share)
CASH AVAILABLE FOR
DISTRIBUTION (CAD):
Funds from operations      $        $         $        $    
available to common share  57,732      60,331       149,407      156,010
and unit holders
Add (deduct):
      Rental income from
      straight-line rent,
      including            (4,942)      (5,478)       (17,804)     (14,925)
      discontinued
      operations
      Financing
      Obligation - 3141    (203)        -             (557)        -
      Fairview Drive
      noncash impact
      Deferred market
      rental income,
      including            (1,582)      (1,397)       (4,538)      (4,080)
      discontinued
      operations
      Company's share of
      unconsolidated real
      estate ventures'     (349)        (203)         (951)        (229)
      straight-line and
      deferred market
      rent
      Historic tax credit  (11,840)     (12,026)      (11,840)     (12,026)
      transaction income
      Non-cash preferred
      unit redemption      -            -             2,090        -
      charge
      Straight-line and
      deferred market      498          498           1,494        1,520
      ground rent expense
      activity
      Stock-based          1,337        1,153         4,034        3,762
      compensation costs
      Fair market value
      amortization -       91           7             273          (479)
      mortgage notes
      payable
      Debt discount
      amortization -       -            272           -            816
      exchangeable notes
      Sub-total certain    (16,990)     (17,174)      (27,799)     (25,641)
      non-cash items
      Revenue maintaining
Less: capital
      expenditures:
         Building      (1,551)      (944)         (2,692)      (3,857)
        improvements
         Tenant        (6,156)      (22,130)      (23,913)     (50,247)
        improvements
         Lease         (2,826)      (10,012)      (7,866)      (20,308)
        commissions
        Total revenue
        maintaining        (10,533)     (33,086)      (34,471)     (74,412)
        capital
        expenditures
Cash available for         $        $         $       $     
distribution               30,209      10,071       87,137       55,957
CAD per share - fully      $       $        $       $     
diluted                    0.21        0.07         0.60       0.40
Weighted-average
shares/units outstanding   146,785,731  146,651,211   146,408,921  146,341,612
- fully diluted
Less: certain partnership
units which were not       -            (2,705,314)   -            (5,626,374)
entitled to distributions
until August 5, 2011
Adjusted Weighted-average
shares/units outstanding   146,785,731  143,945,897   146,408,921  140,715,238
- fully diluted
Distributions paid per     $       $        $       $     
common share                0.15        0.15         0.45       0.45
Payout ratio of CAD
(Distributions paid per    71.4%        214.3%        75.0%        112.5%
common share / CAD per
diluted share)





BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - 3RD QUARTER
(unaudited and in thousands)
Of the 219 properties owned by the Company as of September 30, 2012, a total
of 216 properties ("Same Store Properties") containing an aggregate of 24.1
million net rentable square feet were owned for the entire three-month periods
ended September 30, 2012 and 2011. Average occupancy for the Same Store
Properties was 86.1% during 2012 and 85.3% during 2011. The following table
sets forth revenue and expense information for the Same Store Properties:
                                              Three Months Ended September 30,
                                              2012              2011
Revenue
     Rents                                    $            $     
                                              113,516           113,245
     Tenant reimbursements                    20,345            18,857
     Termination fees                         931               157
     Other                                    1,773             755
                                              136,565           133,014
Operating expenses
     Property operating expenses              42,705            42,260
     Real estate taxes                        13,875            12,751
     Net operating income                     $           $      
                                              79,985            78,003
     Net operating income - percentage change 2.5%
     over prior year
     Net operating income, excluding          $           $      
     termination fees & other                 77,281            77,091
     Net operating income, excluding
     termination fees & other - percentage    0.2%
     change over prior year
Net operating income             $           $      
                                              79,985            78,003
                Straight line rents       (4,420)           (5,045)
                Above/below market rent   (1,429)           (1,247)
               amortization
                Non-cash ground rent      498               498
     Cash - Net operating income              $           $      
                                              74,634            72,209
     Cash - Net operating income - percentage 3.4%
     change over prior year
     Cash - Net operating income, excluding   $           $      
     termination fees & other                 71,930            71,297
     Cash - Net operating income, excluding
     termination fees & other - percentage    0.9%
     change over prior year
The following table is a reconciliation of
Net Income to Same Store net operating
income:
                                              Three Months Ended September 30,
                                              2012              2011
Net income:                                   $           $      
                                              17,089             6,611
Add/(deduct):
     Interest income                          (311)             (523)
     Historic tax credit transaction income   (11,840)          (12,026)
     Interest expense                         32,620            32,346
     Deferred financing costs                 1,218             1,846
     Interest expense - financing obligation  230               -
     Equity in income of real estate ventures (500)             (418)
     Depreciation and amortization            48,738            51,943
     Loss on real estate venture formation    950               -
     (Gain) loss on early extinguishment of   51                (176)
     debt
     General & administrative expenses        6,080             6,177
     Total discontinued operations            (10,009)          (1,750)
               Consolidated net operating     84,316            84,030
               income
Less: Net operating income of non same store (934)             (271)
properties
Less: Eliminations and non-property specific (3,397)           (5,756)
net operating income
               Same Store net operating       $           $      
               income                         79,985            78,003

BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - NINE MONTHS
(unaudited and in thousands)
Of the 219 properties owned by the Company as of September 30, 2012, a total
of 213 properties ("Same Store Properties") containing an aggregate of 24.0
million net rentable square feet were owned for the entire nine-month periods
ended September 30, 2012 and 2011. Average occupancy for the Same Store
Properties was 86.5% during 2012 and 85.1% during 2011. The following table
sets forth revenue and expense information for the Same Store Properties:
                                               Nine Months Ended September 30,
                                               2012             2011
Revenue
     Rents                                     $           $     
                                               340,228          337,418
     Tenant reimbursements                     57,463           58,647
     Termination fees                          2,522            2,673
     Other                                     4,092            2,757
                                               404,305          401,495
Operating expenses
     Property operating expenses               123,065          128,842
     Real estate taxes                         41,508           39,294
     Net operating income                      $           $     
                                               239,732          233,359
     Net operating income - percentage change  2.7%
     over prior year
     Net operating income, excluding           $           $     
     termination fees & other                  233,118          227,929
     Net operating income, excluding
     termination fees & other - percentage     2.3%
     change over prior year
Net operating income              $           $     
                                               239,732          233,359
                Straight line rents        (16,432)         (13,754)
                Above/below market rent    (4,172)          (3,904)
               amortization
                Non-cash ground rent       1,494            1,520
     Cash - Net operating income               $           $     
                                               220,622          217,221
     Cash - Net operating income - percentage  1.6%
     change over prior year
     Cash - Net operating income, excluding    $           $     
     termination fees & other                  214,008          211,791
     Cash - Net operating income, excluding
     termination fees & other - percentage     1.0%
     change over prior year
The following table is a reconciliation of Net
Income (loss) to Same Store net operating
income:
                                               Nine Months Ended September 30,
                                               2012             2011
Net income (loss):                             $          $      
                                               33,227            (113)
Add/(deduct):
     Interest income                           (2,635)          (1,385)
     Historic tax credit transaction income    (11,840)         (12,026)
     Interest expense                          99,745           99,477
     Deferred financing costs                  3,790            3,844
     Interest expense - financing obligation   608              -
     Equity in income of real estate ventures  (1,382)          (2,739)
     Depreciation and amortization             147,618          157,157
     Net gain on sale on interests in real     -                (2,791)
     estate
     Loss on real estate venture formation     950              -
     Loss on early extinguishment of debt      1,549            580
     General & administrative expenses         18,209           18,311
     Total discontinued operations             (36,641)         (9,165)
               Consolidated net operating      253,198          251,150
               income
Less: Net operating income of non same store  (3,307)          (929)
properties
Less: Eliminations and non-property specific  (10,159)         (16,862)
net operating income
               Same Store net operating income $           $     
                                               239,732          233,359



SOURCE Brandywine Realty Trust

Website: http://www.brandywinerealty.com
Contact: Company / Investors: Marge Boccuti, Manager, Investor Relations,
+1-610-832-7702, marge.boccuti@bdnreit.com