Brandywine Realty Trust Results for Fourth Quarter and Full Year 2012 and Increases Its 2013 FFO Guidance to $1.41 to $1.48 per

  Brandywine Realty Trust Results for Fourth Quarter and Full Year 2012 and
     Increases Its 2013 FFO Guidance to $1.41 to $1.48 per Diluted Share

PR Newswire

RADNOR, Pa., Feb. 6, 2013

RADNOR, Pa., Feb. 6, 2013 /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
twelve-month periods ended December 31, 2012.

"We finished 2012 with accelerated activity and outstanding results on our
operations, investments and balance sheet management," stated Gerard H.
Sweeney, President and Chief Executive Officer of Brandywine Realty Trust.
"We met or exceeded every one of our operating targets with 2.9% same store
NOI growth, 2.8% rental rate mark-to-market, 66% tenant retention and just
$2.61 per square foot per lease year of capital costs, and we ended 2012 at
88% occupied and 90% leased. Capital recycling enhanced our portfolio quality
and growth profile through $176 million of sales, $78 million of acquisitions
and $77 million of joint venture investments. We took advantage of attractive
interest rates and issued $250 million of 10-year 3.95% unsecured notes at
year-end and used the net proceeds and other sources to prepay mortgages and
shorter term unsecured debt thereby improving our credit metrics, mitigating
interest rate risk and lengthening our maturities. 2013 is off to an
excellent start with a growing list of executed leases and a large pipeline of
interest from new and existing tenants, not to mention a series of important
development and sales transactions. As such, and reflecting all of these
elements, we are raising our FFO guidance for 2013 to a range of $1.41 to
$1.48 per diluted share from the prior range of $1.38 to $1.46."

Financial Highlights – Fourth Quarter

  oNet loss allocated to common shares totaled ($30.8 million) or ($0.21) per
    diluted share in the fourth quarter of 2012 compared to a net loss of
    ($6.4 million) or ($0.05) per diluted share in the fourth quarter of
    2011. We incurred $27.1 million of total costs related to capital market
    and other transactions in the fourth quarter of 2012 versus $2.6 million
    of comparable costs in the fourth quarter of 2011.
  oAdjusted for the aforementioned $27.1 million of costs related to capital
    market and other transactions, our core Funds from Operations available to
    common shares and units (FFO) in the fourth quarter of 2012 totaled $48.2
    million or $0.33 per diluted share versus $50.0 million or $0.34 per
    diluted share in the fourth quarter of 2011 when we had $2.6 million of
    comparable adjustments. Our fourth quarter 2012 core FFO payout ratio
    ($0.15 common share distribution / $0.33 core FFO per diluted share) was
    45.5%. FFO per the NAREIT definition totaled $21.1 million or $0.14 per
    diluted share in the fourth quarter of 2012 compared to $47.4 million or
    $0.32 per diluted share in the fourth quarter of 2011.
  oIn the fourth quarter of 2012, we incurred $13.8 million of revenue
    maintaining capital expenditures which along with other adjustments to
    FFO, resulted in $27.9 million or $0.19 per diluted share of Cash
    Available for Distribution (CAD) versus $24.6 million or $0.17 per diluted
    share in the fourth quarter of 2011 when we incurred $20.2 million of
    revenue maintaining capital expenditures. Our fourth quarter 2012 CAD
    payout ratio was 78.9% ($0.15 common share distribution / $0.19 CAD per
    diluted share).

Financial Highlights – Full Year 2012

  oNet loss allocated to common shares totaled ($8.2 million) or ($0.06) per
    diluted share in 2012 compared to a net loss of ($13.0 million) or ($0.10)
    per diluted share in 2011. We incurred $30.7 million of total costs
    related to capital market and other transactions in 2012 versus $3.8
    million of comparable costs in 2011.
  oAdjusted for the aforementioned $30.7 million of costs related to capital
    market and other transactions, our core FFO available to common shares and
    units in 2012 totaled $201.3 million or $1.37 per diluted share versus
    $207.2 million or $1.42 per diluted share in 2011 when we had $3.8 million
    of comparable adjustments. Our 2012 core FFO payout ratio was 43.8% ($0.60
    common share distribution / $1.37 FFO per share). FFO per the NAREIT
    definition totaled $170.5 million or $1.16 per diluted share in 2012
    compared to $203.4 million or $1.39 per diluted share in 2011.
  oIn 2012, we incurred $48.3 million of revenue maintaining capital
    expenditures which along with other adjustments to FFO, resulted in $116.6
    million of CAD or $0.80 per diluted share compared to $81.7 million of CAD
    or $0.57 per diluted share for 2011 when we incurred $94.6 million of
    revenue maintaining capital expenditures. Our CAD payout ratio for 2012
    was 75.0% ($0.60 common share distribution / $0.80 CAD per diluted share).

Portfolio Highlights

  oIn the fourth quarter of 2012, our net operating income (NOI) excluding
    termination revenues and other income items increased 4.7% on a GAAP basis
    and 4.5% on a cash basis for our 216 same store properties, which were
    88.2% and 86.7% occupied on December 31, 2012 and December 31, 2011,
    respectively. In 2012 overall, our net operating income (NOI) excluding
    termination revenues and other income items increased 2.9% on a GAAP basis
    and 1.8% on a cash basis.
  oDuring the fourth quarter of 2012, we commenced occupancy on 723,194
    square feet of total leasing activity including 248,157 square feet of
    renewals, 422,313 square feet of new leases and 52,724 square feet of
    tenant expansions. We have an additional 508,965 square feet of executed
    new leasing scheduled to commence subsequent to December 31, 2012.
  oDuring the fourth quarter of 2012, we achieved a 74.2% tenant retention
    ratio in our core portfolio with positive net absorption of 317,730 square
    feet. During the fourth quarter of 2012, we experienced no change on our
    renewal rental rates and a 5.6% increase on our new lease/expansion rental
    rates, both on a GAAP basis. For all of 2012, we achieved a 66.2% tenant
    retention ratio and positive net absorption of 284,870 square feet.
  oAt December 31, 2012, our core portfolio of 217 properties comprising 24.2
    million square feet was 88.3% occupied and 90.3% leased (reflecting new
    leases commencing after December 31, 2012).

Investment Highlights

  oDuring the fourth quarter of 2012, as previously disclosed, we completed
    (1) the $34.8 million acquisition of 1900 Market Street, a 76.3% occupied,
    456,922 square foot office building located in the central business
    district of Philadelphia, Pennsylvania which we plan to redevelop over the
    next few years, (2) the $32.1 million acquisition of 7000 West at Lantana,
    a 100% occupied, 136,075 square foot, two-building, Class A office complex
    located in the southwest submarket of Austin, Texas, and (3) the $2.1
    million acquisition of a ten-acre parcel of land adjacent to our 2291 Wood
    Oak Drive building in Herndon, Virginia (see our February 1, 2013 press
    release for additional details).
  oSubsequent to year-end, as previously disclosed, we (1) entered into a
    definitive agreement to sell Princeton Pike Corporate Center, an
    eight-building, 800,546 square foot office park located in Lawrenceville,
    New Jersey, for $121.0 million with closing expected in the first quarter
    of 2013 and up to a $5.2 million gain on sale, (2) funded the remaining
    $5.9 million of our $25.0 million aggregate 25% investment in One and Two
    Commerce Square, a 92.9% occupied, 1.9 million square foot, two-building,
    Class A office complex located in the central business district of
    Philadelphia, Pennsylvania controlled by affiliates of the Thomas
    Properties Group Inc., and (3) entered into a joint venture as a 30%
    partner with Campus Crest Communities, Inc. (30%) and Harrison Street Real
    Estate Capital (40%) to develop The Grove at Cira Centre South, a
    33-story, 850-bed student housing tower in the University City submarket
    of Philadelphia, Pennsylvania. Development of The Grove at Cira Centre
    South is projected to cost $158.5 million and will be financed from an
    executed $97.8 million construction loan with the balance funded pro rata
    by the partners. Construction has commenced with a targeted completion in
    September 2014 (see our February 1, 2013 and February 5, 2013 press
    releases for additional details).
  oWe are continuing 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 $14.3 million to date and plan to fund
    the remaining $4.2 million as we complete the lease-up of this
    redevelopment. As of December 31, 2012, the property was 58.2% occupied
    and 77.5% leased. We are also proceeding with our Plymouth Meeting,
    Pennsylvania multi-family 50/50 joint venture with Toll Brothers and
    expect to commence construction of 398 units in the second quarter of 2013
    with a total cost of $77.0 million of which $31.0 million has already been
    funded pro rata by the partners.

Capital Markets Highlights

  oAt December 31, 2012, our net debt to gross assets measured 45.2% and we
    had $69.0 million outstanding on our $600.0 million unsecured revolving
    credit facility. Following the closing of the aforementioned Princeton
    Pike sale transaction later in the first quarter of 2013, we expect to
    have no outstanding balance on our $600.0 million unsecured revolving
    credit facility.
  oFor the quarter ended December 31, 2012, we achieved a 2.5 EBITDA to
    interest coverage ratio and a 7.5 ratio of net debt to annualized
    quarterly EBITDA based on consolidated EBITDA excluding certain capital
    market and transactional items, and inclusive of our pro rata share of
    unconsolidated EBITDA, interest and net debt.
  oDuring the fourth quarter of 2012, as previously disclosed, we completed
    (1) a $250.0 million 3.95% ten-year unsecured note offering due February
    15, 2023, generating net proceeds of $246.1 million, (2) the tender for a
    total of $149.9 million of our unsecured notes maturing in 2015 and 2016,
    (3) the optional redemption of all 2.3 million of our 7.375% Series D
    Cumulative Redeemable Preferred Shares with a total outlay of $58.3
    million, comprising the $57.5 million par redemption plus $0.8 million of
    distributions for this partial period, (4) the repayment of $150.0 million
    of our $250.0 million unsecured bank term loan due February 1, 2016, and
    the termination of the associated interest rate hedging contracts, (5) the
    pre-payment of the $54.9 million balance on a series of mortgage loans
    comprising our 7.25% Newtown Square/Berwyn Park/Libertyview secured
    financing, (6) the pre-payment of the $1.1 million balance on our 7.75%
    Southpoint III mortgage loan, and (7) the redemption of 811,984 limited
    partnership units from the estate of a former unit holder for total cash
    consideration of $9.7 million, reflecting a calculated price of $12.00 per
    unit. In the aggregate, we recognized in our results for the fourth
    quarter of 2012 a total of $26.6 million of cash costs and accelerated
    deferred charges related to the preferred share redemption, unsecured note
    tenders, early debt repayments and termination of interest rate hedge
    contracts (see our February 1, 2013 press release for additional details).

Distributions

On December 11, 2012, our Board of Trustees declared a quarterly dividend
distribution of $0.15 per common share that was paid on January 18, 2013 to
shareholders of record as of January 4, 2013. Our Board also declared a
quarterly dividend distribution of $0.43125 for each 6.90% Series E Cumulative
Redeemable Preferred Share that was paid on January 15, 2013 to holders of
record as of December 30, 2012. As previously disclosed, we redeemed all of
our outstanding 7.375% Series D Cumulative Redeemable Preferred Shares on
December 28, 2012 on which date each share received the $25.00 redemption
price plus $0.36875 of accumulated and unpaid dividends.

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 are revising our previously issued guidance for full year 2013 FFO
per diluted share to be in a range of $1.41 to $1.48 versus the prior 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        $(0.03) to $ 0.04
shareholders
Plus: real estate depreciation and amortization             1.44       1.44
FFO per diluted share                                        $ 1.41  to $ 1.48

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% by year-end 2013 with 92% 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 capital markets activity, $100.0 million of
additional sales activity beyond the pending $121.0 million Princeton Pike
sale, no acquisition activity and 146.7 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) and Core 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. We also
provide a calculation of core FFO in which we adjust NAREIT FFO for certain
capital market and transactional items.

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.

Fourth Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, February 7, 2013 at 9:00 a.m.
EST. The conference call can be accessed by calling 1-800-683-1525 and
referencing conference ID #75720698. Beginning two hours after the conference
call, a taped replay of the call can be accessed 24 hours a day through
Thursday, February 21, 2013 by calling 1-855-859-2056 and providing access
code #75720698. 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 fourth 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 - First Quarter 2013 Conference Call

We anticipate we will release our first quarter 2013 earnings on Wednesday,
April 24, 2013, after the market close and will host our first quarter 2013
conference call on Thursday, April 25, 2013, at 9:00 a.m. EDT. 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 297 properties and 34.6 million square feet, including 221
properties and 25.1 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 December 31, 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)
                                         December 31,       December 31,
                                         2012               2011
                                         (unaudited)
ASSETS
Real estate investments:
      Rental properties                  $   4,726,169   $   4,793,080
      Accumulated depreciation           (954,665)          (865,710)
                                         3,771,504          3,927,370
      Construction-in-progress           48,950             25,083
      Land inventory                     102,439            109,008
                                         3,922,893          4,061,461
Cash and cash equivalents                1,549              410
Accounts receivable, net                 13,232             14,718
Accrued rent receivable, net             122,066            108,101
Investment in real estate ventures       193,555            115,807
Deferred costs, net                      122,243            115,362
Intangible assets, net                   70,620             70,515
Notes receivable                         7,226              18,186
Other assets                             53,325             53,158
      Total assets                       $   4,506,709   $   4,557,718
LIABILITIES AND EQUITY
Mortgage notes payable, including        $     442,974  $     511,061
premiums
Unsecured credit facility                69,000             275,500
Unsecured term loan                      450,000            37,500
Unsecured senior notes, net of discounts 1,503,356          1,569,934
Accounts payable and accrued expenses    71,579             69,929
Distributions payable                    23,652             23,895
Deferred income, gains and rent          82,947             99,569
Acquired lease intangibles, net          33,859             35,106
Other liabilities                        55,826             45,528
      Total liabilities                  2,733,193          2,668,022
Brandywine Realty Trust's equity:
 Preferred shares - Series C             -                  20
 Preferred shares - Series D             -                  23
 Preferred shares - Series E             40                 -
 Common shares                           1,434              1,424
 Additional paid-in capital              2,780,194          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                     479,734            477,338
 Accumulated other comprehensive loss    (15,918)           (6,079)
 Cumulative distributions                (1,493,206)        (1,392,332)
      Total Brandywine Realty Trust's    1,752,278          1,856,591
      equity
Non-controlling interests                21,238             33,105
      Total equity                       1,773,516          1,889,696
      Total liabilities and equity       $   4,506,709   $   4,557,718



BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share data)
                          Three Months Ended         Twelve Months Ended
                          December 31,               December 31,
                          2012         2011          2012         2011
Revenue
 Rents                    $          $           $          $  
                          116,595      116,192       459,855      462,771
 Tenant reimbursements    20,305       19,921        78,613       79,108
 Termination fees         711          278           3,233        2,951
 Third party management
 fees, labor              3,095        3,022         12,116       11,536
 reimbursement and
 leasing
 Other                    1,757        2,073         6,016        5,387
      Total revenue       142,463      141,486       559,833      561,753
Operating Expenses
 Property operating       41,228       43,054        159,296      167,077
 expenses
 Real estate taxes        13,677       13,472        55,969       54,171
 Third party management   1,315        1,195         5,127        5,590
 expenses
 Depreciation and         48,223       53,177        195,841      210,334
 amortization
 General & administrative 7,204        6,291         25,413       24,602
 expenses
      Total operating     111,647      117,189       441,646      461,774
      expenses
Operating income          30,816       24,297        118,187      99,979
Other income (expense)
 Interest income          377          428           3,012        1,813
 Historic tax credit      -            -             11,840       12,026
 transaction income
 Interest expense         (33,194)     (31,928)      (132,939)    (131,405)
 Deferred financing costs (2,418)      (1,147)       (6,208)      (4,991)
 Recognized hedge         (2,985)      -             (2,985)      -
 activity
 Interest expense -       (242)        -             (850)        -
 financing obligation
 Equity in income of real 1,359        1,036         2,741        3,775
 estate ventures
 Net gain on sale of      -            -             -            2,791
 interests in real estate
 Net gain on sale of
 undepreciated real       -            45            -            45
 estate
 Loss on real estate      -            (222)         (950)        (222)
 venture formation
 Loss on early            (20,453)     (2,196)       (22,002)     (2,776)
 extinguishment of debt
Loss from continuing      (26,740)     (9,687)       (30,154)     (18,965)
operations
Discontinued operations:
 Income from discontinued 42           1,657         1,909        6,986
 operations
 Net gain on disposition
 of discontinued          -            3,428         34,774       7,264
 operations
Total discontinued        42           5,085         36,683       14,250
operations
Net income (loss)         (26,698)     (4,602)       6,529        (4,715)
Net (income) loss from
discontinued operations
attributable
 to non-controlling       (1)          (319)         (670)        (553)
 interests - LP units
Net (income) loss from
continuing operations
attributable to
 non-controlling         492          681           736          769
 interests - LP units
Net (income) loss
attributable to           491          362           66           216
non-controlling interests
Net income (loss)
attributable to           (26,207)     (4,240)       6,595        (4,499)
Brandywine Realty Trust
Preferred share           (2,573)      (1,998)       (10,405)     (7,992)
distributions
Preferred share           (1,962)      -             (4,052)      -
redemption charge
Amount allocated to
unvested restricted       (90)         (121)         (376)        (505)
shareholders
Net loss attributable to  $          $          $         $  
common shareholders       (30,832)     (6,359)       (8,238)      (12,996)
PER SHARE DATA
Basic loss per common     $        $         $        $    
share                     (0.21)       (0.05)        (0.06)       (0.10)
Basic weighted-average    143,478,042  136,275,295   143,257,097  135,444,424
shares outstanding
Diluted loss per common   $        $         $        $    
share                     (0.21)       (0.05)        (0.06)       (0.10)
Diluted weighted-average  143,478,042  136,275,295   143,257,097  135,444,424
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         Twelve Months Ended
                           December 31,               December 31,
                           2012         2011          2012         2011
Reconciliation of Net Loss
to Funds from Operations:
Net loss attributable to   $          $          $         $  
common shareholders        (30,832)     (6,359)       (8,238)      (12,996)
Add (deduct):
      Net loss
      attributable to      (492)        (681)         (736)        (769)
      non-controlling
      interests - LP units
      Amount allocated to
      unvested restricted  90           121           376          505
      shareholders
      Net gain on sale of
      interests in real    -            -             -            (2,791)
      estate
      Net gain on sale of
      undepreciated real   -            (45)          -            (45)
      estate
      Loss on real estate  -            222           950          222
      venture formation
      Net income (loss)
      from discontinued
      operations           1            319           670          553
      attributable to
      non-controlling
      interests - LP units
      Net gain on
      disposition of       -            (3,428)       (34,774)     (7,264)
      discontinued
      operations
      Depreciation and
      amortization:
          Real property
         - continuing      39,367       40,382        156,620      160,001
         operations
          Leasing costs
         (includes
         acquired          8,819        12,588        38,983       49,286
         intangibles) -
         continuing
         operations
          Real property
         - discontinued    -            1,896         2,459        8,560
         operations
          Leasing costs
         (includes
         acquired          -            24            291          217
         intangibles) -
         discontinued
         operations
          Company's
         share of
         unconsolidated    4,260        2,628         14,788       9,181
         real estate
         ventures
Funds from operations      $          $           $          $  
                           21,213      47,667       171,389      204,660
      Funds from
      operations allocable
      to unvested          (87)         (281)         (856)        (1,264)
      restricted
      shareholders
Funds from operations      $          $           $          $  
available to common share  21,126      47,386       170,533      203,396
and unit holders (FFO)
FFO per share - fully      $        $         $        $    
diluted                    0.14        0.32         1.16        1.39
      Capital market and   $          $          $          $   
      transactional items  27,050      2,572        30,728      3,775
      Core FFO, excluding  $          $           $          $  
      capital market and   48,176      49,958       201,261      207,171
      transactional items
      Core FFO per share,
      excluding capital    $        $         $        $    
      market and           0.33        0.34         1.37        1.42
      transactional items
      - fully diluted
Weighted-average
shares/units outstanding - 146,772,116  146,166,050   146,500,828  146,299,625
fully diluted
Distributions paid per     $        $         $        $    
common share               0.15        0.15         0.60        0.60
FFO payout ratio
(Distributions paid per    107.1%       46.9%         51.7%        43.2%
common share divided / FFO
per diluted share)
      Core FFO payout
      ratio, excluding     45.5%        44.1%         43.8%        42.3%
      capital market and
      transactional items
CASH AVAILABLE FOR
DISTRIBUTION (CAD):
Funds from operations      $          $           $          $  
available to common share  21,126      47,386       170,533      203,396
and unit holders
Add (deduct):
      Rental income from
      straight-line rent,
      including            (5,764)      (5,373)       (23,568)     (20,298)
      discontinued
      operations
      Financing Obligation
      - 3141 Fairview      (245)        -             (802)        -
      Drive noncash impact
      Deferred market
      rental income,
      including            (1,640)      (1,397)       (6,178)      (5,477)
      discontinued
      operations
      Company's share of
      unconsolidated real
      estate ventures'     (267)        (154)         (1,218)      (383)
      straight-line and
      deferred market rent
      Historic tax credit  -            -             (11,840)     (12,026)
      transaction income
      Preferred unit       1,962        -             4,052        -
      redemption charge
      Straight-line and
      deferred market      498          498           1,992        2,018
      ground rent expense
      activity
      Stock-based          2,015        1,107         6,049        4,869
      compensation costs
      Fair market value
      amortization -       91           91            364          (388)
      mortgage notes
      payable
      Losses from early
      extinguishment of    20,453       2,196         22,002       2,776
      debt
      Recognized hedge     2,985        -             2,985        -
      activity
      Acquisition-related  459          264           480          847
      costs
      Debt discount
      amortization -       -            91            -            907
      exchangeable notes
      Sub-total certain    20,547       (2,677)       (5,682)      (27,155)
      items
      Revenue maintaining
Less: capital
      expenditures:
          Building     (2,480)      (561)         (5,172)      (4,418)
         improvements
          Tenant       (7,506)      (14,432)      (31,419)     (64,679)
         improvements
          Lease        (3,828)      (5,165)       (11,694)     (25,473)
         commissions
         Total revenue
         maintaining       (13,814)     (20,158)      (48,285)     (94,570)
         capital
         expenditures
Cash available for         $          $           $          $  
distribution               27,859      24,551       116,566      81,671
CAD per share - fully      $        $         $        $    
diluted                   0.19        0.17         0.80        0.57
Weighted-average
shares/units outstanding - 146,772,116  146,166,050   146,500,828  146,299,625
fully diluted
Less: certain partnership
units which were not       -            -             -            (4,208,220)
entitled to distributions
until August 5, 2011
Adjusted Weighted-average
shares/units outstanding - 146,772,116  146,166,050   146,500,828  142,091,405
fully diluted
Distributions paid per     $        $         $        $    
common share               0.15        0.15         0.60        0.60
CAD payout ratio
(Distributions paid per    78.9%        88.2%         75.0%        105.3%
common share / CAD per
diluted share)



BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - 4TH QUARTER
(unaudited and in thousands)
Of the 221 properties owned by the Company as of December 31, 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 December 31, 2012 and 2011. Average occupancy for the Same Store
Properties was 88.2% during 2012 and 86.7% during 2011. The following table
sets forth revenue and expense information for the Same Store Properties:
                                            Three Months Ended December 31,
                                            2012               2011
Revenue
     Rents                                  $             $     
                                            116,158            113,784
     Tenant reimbursements                  20,055             19,663
     Termination fees                       711                278
     Other                                  1,559              707
                                            138,483            134,432
Operating expenses
     Property operating expenses            42,756             43,904
     Real estate taxes                      13,359             13,043
     Net operating income                   $            $      
                                            82,368             77,485
     Net operating income - percentage      6.3%
     change over prior year
     Net operating income, excluding        $            $      
     termination fees & other               80,098             76,500
     Net operating income, excluding
     termination fees & other - percentage  4.7%
     change over prior year
Net operating income           $            $      
                                            82,368             77,485
                Straight line rents     (5,322)            (5,065)
                Above/below market rent (1,559)            (1,363)
               amortization
                Non-cash ground rent    498                498
     Cash - Net operating income            $            $      
                                            75,985             71,555
     Cash - Net operating income -          6.2%
     percentage change over prior year
     Cash - Net operating income, excluding $            $      
     termination fees & other               73,715             70,570
     Cash - Net operating income, excluding
     termination fees & other - percentage  4.5%
     change over prior year
The following table is a reconciliation of
Net Loss to Same Store net operating
income:
                                            Three Months Ended December 31,
                                            2012               2011
Net loss:                                   $             $      
                                            (26,698)          (4,602)
Add/(deduct):
     Interest income                        (377)              (428)
     Interest expense                       33,194             31,928
     Deferred financing costs               2,418              1,147
     Recognized hedge activity              2,985              -
     Interest expense - financing           242                -
     obligation
     Equity in income of real estate        (1,359)            (1,036)
     ventures
     Depreciation and amortization          48,223             53,177
     Net gain on sale of undepreciated real -                  (45)
     estate
     Loss on real estate venture formation  -                  222
     Loss on early extinguishment of debt   20,453             2,196
     General & administrative expenses      7,204              6,291
     Total discontinued operations          (42)               (5,085)
               Consolidated net operating   86,243             83,765
               income
Less: Net operating income of non same     (560)              -
store properties
Less: Eliminations and non-property        (3,315)            (6,280)
specific net operating income
               Same Store net operating     $            $      
               income                       82,368             77,485



BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - YEAR
(unaudited and in thousands)
Of the 221 properties owned by the Company as of December 31, 2012, a total of
211 properties ("Same Store Properties") containing an aggregate of 23.7
million net rentable square feet were owned for the entire twelve-month
periods ended December 31, 2012 and 2011. Average occupancy for the Same
Store Properties was 88.3% during 2012 and 86.4% during 2011. The following
table sets forth revenue and expense information for the Same Store
Properties:
                                              Twelve Months Ended December 31,
                                              2012              2011
Revenue
     Rents                                    $            $     
                                              454,020           448,764
     Tenant reimbursements                    76,986            77,659
     Termination fees                         3,233             2,951
     Other                                    5,636             3,392
                                              539,875           532,766
Operating expenses
     Property operating expenses              164,091           170,904
     Real estate taxes                        54,470            51,794
     Net operating income                     $            $     
                                              321,314           310,068
     Net operating income - percentage change 3.6%
     over prior year
     Net operating income, excluding          $            $     
     termination fees & other                 312,445           303,725
     Net operating income, excluding
     termination fees & other - percentage    2.9%
     change over prior year
Net operating income             $            $     
                                              321,314           310,068
                Straight line rents       (21,682)          (18,537)
                Above/below market rent   (5,608)           (5,147)
               amortization
                Non-cash ground rent      1,992             2,018
     Cash - Net operating income              $            $     
                                              296,016           288,402
     Cash - Net operating income - percentage 2.6%
     change over prior year
     Cash - Net operating income, excluding   $            $     
     termination fees & other                 287,147           282,059
     Cash - Net operating income, excluding
     termination fees & other - percentage    1.8%
     change over prior year
The following table is a reconciliation of
Net Income (loss) to Same Store net operating
income:
                                              Twelve Months Ended December 31,
                                              2012              2011
Net income (loss):                            $          $      
                                              6,529             (4,715)
Add/(deduct):
     Interest income                          (3,012)           (1,813)
     Historic tax credit transaction income   (11,840)          (12,026)
     Interest expense                         132,939           131,405
     Deferred financing costs                 6,208             4,991
     Recognized hedge activity                2,985             -
     Interest expense - financing obligation  850               -
     Equity in income of real estate ventures (2,741)           (3,775)
     Depreciation and amortization            195,841           210,334
     Net gain on sale of interests in real    -                 (2,791)
     estate
     Net gain on sale of undepreciated real   -                 (45)
     estate
     Loss on real estate venture formation    950               222
     Loss on early extinguishment of debt     22,002            2,776
     General & administrative expenses        25,413            24,602
     Total discontinued operations            (36,683)          (14,250)
               Consolidated net operating     339,441           334,915
               income
Less: Net operating income of non same store (4,696)           (1,649)
properties
Less: Eliminations and non-property specific (13,431)          (23,198)
net operating income
               Same Store net operating       $            $     
               income                         321,314           310,068



SOURCE Brandywine Realty Trust

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