Brandywine Realty Trust Announces $0.35 FFO per Diluted Share for the First Quarter 2013

 Brandywine Realty Trust Announces $0.35 FFO per Diluted Share for the First
                                 Quarter 2013

PR Newswire

RADNOR, Pa., April 24, 2013

RADNOR, Pa., April 24, 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-month
period ended March 31, 2013.

"During the first quarter of 2013, we continued to achieve outstanding results
on operations, transactional activity and balance sheet management," stated
Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty
Trust. "We achieved particularly strong results on same store NOI growth,
rental rate increases and forward leasing, which reinforce our confidence in
the 2013 business plan. The first quarter sales of the Princeton Pike
portfolio in central New Jersey and of One/Three Christina in Wilmington,
Delaware where we had a 20% interest bring us to 63% achieved on our 2013
$221.0 million disposition goal and continue our steady migration to a higher
quality, more urban-oriented office portfolio. While the economic backdrop is
challenging, our combination of superior product, people and process continues
to benefit our leasing efforts. In early April, we took advantage of
favorable market conditions and raised $181.7 million of net proceeds through
the offering of 12,650,000 common shares, thereby accelerating our
deleveraging program, improving our credit metrics and creating greater
liquidity and financial flexibility. As a result and specifically reflecting
the dilution from the unplanned equity offering, we are revising our FFO
guidance for 2013 to a range of $1.35 to $1.42 per diluted share versus the
prior range of $1.41 to $1.48."

Financial Highlights

  oNet income allocated to common shares totaled $2.1 million or $0.01 per
    diluted share in the first quarter of 2013 compared to net income of $7.1
    million or $0.05 per diluted share in the first quarter of 2012. We
    realized $5.3 million of net gains from the sale of real estate in the
    first quarter of 2013 versus $14.7 million of comparable gains in the
    first quarter of 2012.
  oOur core Funds from Operations available to common shares and units (FFO)
    in the first quarter of 2013 totaled $51.7 million or $0.35 per diluted
    share versus $47.3 million or $0.32 per diluted share in the first quarter
    of 2012. Our first quarter 2013 core FFO payout ratio ($0.15 common share
    distribution / $0.35 core FFO per diluted share) was 42.9%. FFO per the
    NAREIT definition similarly totaled $51.7 million or $0.35 per diluted
    share in the first quarter of 2013 compared to $47.1 million or $0.32 per
    diluted share in the first quarter of 2012.
  oIn the first quarter of 2013, we incurred $13.3 million of revenue
    maintaining capital expenditures which along with other adjustments to
    FFO, resulted in $33.1 million or $0.23 per diluted share of Cash
    Available for Distribution (CAD) versus $28.0 million or $0.19 per diluted
    share in the first quarter of 2012 when we incurred $12.3 million of
    revenue maintaining capital expenditures. Our first quarter 2013 CAD
    payout ratio was 65.2% ($0.15 common share distribution / $0.23 CAD per
    diluted share).

Portfolio Highlights

  oIn the first quarter of 2013, our net operating income (NOI) excluding
    termination revenues and other income items increased 3.4% on a GAAP basis
    and 6.3% on a cash basis for our 208 same store properties, which were
    87.6% and 87.4% occupied on March 31, 2013 and March 31, 2012,
    respectively.
  oDuring the first quarter of 2013, we commenced occupancy on 692,117 square
    feet of total leasing activity including 372,873 square feet of renewals,
    262,422 square feet of new leases and 56,822 square feet of tenant
    expansions. We have an additional 729,247 square feet of executed new
    leasing scheduled to commence subsequent to March 31, 2013.
  oDuring the first quarter of 2013, we achieved a 52.7% tenant retention
    ratio in our core portfolio with negative net absorption of 123,940 square
    feet. During the first quarter of 2013, we experienced an 11.0% increase
    on our renewal rental rates and a 5.7% increase on our new lease/expansion
    rental rates, both on a GAAP basis.
  oAt March 31, 2013, our core portfolio of 209 properties comprising 23.4
    million square feet was 87.7% occupied and 90.8% leased (reflecting new
    leases commencing after March 31, 2013).

Investment Highlights

  oDuring the first quarter of 2013, the joint venture in which we were a 20%
    partner completed the $87.0 million sale of One and Three Christina
    Center, a 632,797 square foot, two-building office project located in
    Wilmington, Delaware that was approximately 97% leased to a single tenant
    who purchased the project. As a result of this sale and reflecting our
    20% share, we realized net proceeds of $17.0 million after transaction
    expenses, effectively matching the investment basis of our 20% interest.
  oDuring the first quarter of 2013, as previously disclosed, we (1)
    completed the sale of Princeton Pike Corporate Center, an eight-building,
    800,546 square foot office park located in Lawrenceville, New Jersey, for
    $121.0 million with net proceeds of $113.5 million after transaction
    expenses, and (2) funded the remaining $5.9 million of our $25.0 million
    aggregate 25% investment in One and Two Commerce Square, a 92.6% occupied,
    1,896,142 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.
  oWe are continuing 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 $14.8 million to date and plan to fund the
    remaining $3.7 million as we complete the lease-up of this redevelopment.
    As of March 31, 2013, the property was 58.2% occupied and 77.5% leased.
  oWe have commenced development of a 17,884 square foot retail center
    adjoining our various Radnor, Pennsylvania office properties to provide
    additional services and restaurant options for the existing tenants. The
    development is projected to cost a total of $7.5 million including
    associated land costs with $4.3 million of that remaining to be spent in
    advance of the targeted fourth quarter 2013 completion date, and is
    projected to be stabilized in the third quarter of 2014.
  oWe are proceeding with our Plymouth Meeting, Pennsylvania multi-family
    50/50 joint venture with Toll Brothers, and expect to commence
    construction of the 398 unit development in the second quarter of 2013
    with a projected total cost of $77.0 million, of which $31.0 million has
    already been funded pro rata by the partners with the balance expected to
    be funded from a to-be-executed construction loan. Completion of the
    improvements is targeted for the fourth quarter of 2015.
  oWe are also proceeding with The Grove at Cira South, a 30/30/40 joint
    venture with Campus Crest Communities, Inc. (30%) and Harrison Street Real
    Estate Capital (40%) to develop a 33-story, 850-bed student housing tower
    in the University City submarket of Philadelphia, Pennsylvania. The total
    cost is projected to be $158.5 million, and will be funded from an
    executed $97.8 million construction loan once the partners have fulfilled
    their $60.7 million pro rata equity contributions, of which $17.9 million
    had been funded as of March 31, 2013. $8.5 million of our $18.2 million
    share of the equity commitment (30%) will be satisfied via our
    contribution to the venture of the underlying ground lease parcel.
    Construction has commenced with completion targeted for the third quarter
    of 2014.

Capital Markets Highlights

  oAt March 31, 2013, our net debt to gross assets measured 44.1%, reflecting
    the fact that we had no outstanding balance on our $600.0 million
    unsecured revolving credit facility and had $47.9 million of cash and cash
    equivalents on hand.
  oFor the quarter ended March 31, 2013, we achieved a 2.7 EBITDA to interest
    coverage ratio and a 7.2 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.
  oSubsequent to quarter end as previously disclosed, we completed the public
    offering of 12,650,000 of our common shares. Pro forma for the $181.7
    million net proceeds of the completed offering, our net debt to gross
    assets would measure 40.7% and we would have achieved a 6.7 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 and net debt.

Distributions

On March 13, 2013, our Board of Trustees declared a quarterly dividend
distribution of $0.15 per common share that was paid on April 19, 2013 to
shareholders of record as of April 5, 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 April 15, 2013 to holders of
record as of March 30, 2013.

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 $1.35 to $1.42 versus the prior range of
$1.41 to $1.48. 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                                                                              Range or Value
2013
 Earnings per diluted share allocated to common shareholders                 $0.01  to   $ 0.08
 Less: gain on sale of discontinued operations                                (0.04)        (0.04)
 Plus: real estate depreciation and amortization                             1.38          1.38
 FFO per diluted share                                                       $ 1.35 to $ 1.42

Our 2013 FFO guidance does not include income arising from the sale of any
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 additional capital markets activity, $221.0
million of aggregate sales activity inclusive of completed sales, no
acquisition activity and 155.8 million fully diluted weighted average common
shares (versus the prior assumption of 146.7 million).

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.

First Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, April 25, 2013 at 9:00 a.m. EDT.
The conference call can be accessed by calling 1-800-683-1525 and referencing
conference ID #75722406. Beginning two hours after the conference call, a
taped replay of the call can be accessed 24 hours a day through Thursday, May
9, 2013 by calling 1-855-859-2056 and providing access code #75722406. 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 first 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 - Second Quarter 2013 Conference Call

We anticipate we will release our second quarter 2013 earnings on Wednesday,
July 24, 2013, after the market close and will host our second quarter 2013
conference call on Thursday, July 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 289 properties and 33.2 million square feet, including 214
properties and 24.3 million square feet owned on a consolidated basis and 56
properties and 6.4 million square feet in 19 unconsolidated real estate
ventures all as of March 31, 2013. 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, 2012. 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)
                                          March 31,          December 31,
                                          2013               2012
                                          (unaudited)
ASSETS
Real estate investments:
      Rental properties                   $   4,607,890   $   4,726,169
      Accumulated depreciation            (951,934)          (954,665)
                                          3,655,956          3,771,504
      Construction-in-progress            53,468             48,950
      Land inventory                      92,776             102,439
                                          3,802,200          3,922,893
Cash and cash equivalents                 47,874             1,549
Accounts receivable, net                  15,072             13,232
Accrued rent receivable, net              120,070            122,066
Investment in real estate ventures        184,802            193,555
Deferred costs, net                       119,378            122,243
Intangible assets, net                    66,104             70,620
Notes receivable                          7,026              7,226
Other assets                              62,778             53,325
      Total assets                        $   4,425,304   $   4,506,709
LIABILITIES AND EQUITY
Mortgage notes payable, including         $     440,300  $     442,974
premiums
Unsecured credit facility                 -                  69,000
Unsecured term loan                       450,000            450,000
Unsecured senior notes, net of discounts  1,503,632          1,503,356
Accounts payable and accrued expenses     81,626             71,579
Distributions payable                     23,684             23,652
Deferred income, gains and rent           81,976             82,947
Acquired lease intangibles, net           31,902             33,859
Other liabilities                         53,551             55,826
      Total liabilities                   2,666,671          2,733,193
Brandywine Realty Trust's equity:
 Preferred shares - Series E              40                 40
 Common shares                            1,435              1,434
 Additional paid-in capital               2,783,130          2,780,194
 Deferred compensation payable in common  5,516              5,352
 stock
 Common shares held in grantor trust      (5,516)            (5,352)
 Cumulative earnings                      483,635            479,734
 Accumulated other comprehensive loss     (14,048)           (15,918)
 Cumulative distributions                 (1,516,591)        (1,493,206)
      Total Brandywine Realty Trust's     1,737,601          1,752,278
      equity
Non-controlling interests                 21,032             21,238
      Total equity                        1,758,633          1,773,516
      Total liabilities and equity        $   4,425,304   $   4,506,709



BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share data)
                                              Three Months Ended March 31,
                                              2013             2012
Revenue
   Rents                                      $           $     
                                              115,552          109,699
   Tenant reimbursements                      20,357           18,696
   Termination fees                           496              1,490
   Third party management fees, labor         3,236            3,142
   reimbursement and leasing
   Other                                      967              1,512
              Total revenue                   140,608          134,539
Operating Expenses
   Property operating expenses                39,641           38,077
   Real estate taxes                          14,430           13,567
   Third party management expenses            1,425            1,250
   Depreciation and amortization              49,861           48,096
   General & administrative expenses          6,551            6,050
              Total operating expenses        111,908          107,040
Operating income                              28,700           27,499
Other income (expense)
   Interest income                            58               483
   Interest expense                           (30,914)         (34,144)
   Deferred financing costs                   (1,161)          (1,311)
   Interest expense - financing obligation    (218)            (182)
   Equity in income of real estate ventures   1,535            44
   Loss on early extinguishment of debt       (3)              (248)
Loss from continuing operations              (2,003)          (7,859)
Discontinued operations:
   Income from discontinued operations        618              2,527
   Net gain on disposition of discontinued    5,304            14,668
   operations
Total discontinued operations                 5,922            17,195
Net income                                    3,919            9,336
Net (income) loss from discontinued
operations attributable
   to non-controlling interests - LP units    (75)             (315)
Net (income) loss from continuing operations
attributable to
   non-controlling interests - LP units      47               181
Net (income) loss attributable to             (28)             (134)
non-controlling interests
Net income attributable to Brandywine Realty  3,891            9,202
Trust
Preferred share distributions                 (1,725)          (1,998)
Amount allocated to unvested restricted       (108)            (96)
shareholders
Net income attributable to common             $         $       
shareholders                                  2,058            7,108
PER SHARE DATA
Basic earnings per common share               $         $       
                                              0.01            0.05
Basic weighted-average shares outstanding     143,605,659      142,820,955
Diluted earnings per common share             $         $       
                                              0.01            0.05
Diluted weighted-average shares outstanding   143,605,659      142,820,955



BRANDYWINE REALTY TRUST
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
(unaudited, in thousands, except share and per share data)
                                                Three Months Ended March 31,
                                                2013             2012
Reconciliation of Net Income to Funds from
Operations:
Net income attributable to common shareholders  $           $     
                                                2,058            7,108
Add (deduct):
      Net loss attributable to non-controlling  (47)             (181)
      interests - LP units
      Amount allocated to unvested restricted   108              96
      shareholders
      Net income from discontinued operations
      attributable to non-controlling           75               315
      interests - LP units
      Net gain on disposition of discontinued   (5,304)          (14,668)
      operations
      Depreciation and amortization:
             Real property - continuing       40,419           37,134
            operations
             Leasing costs (includes
            acquired intangibles) - continuing  9,407            10,856
            operations
             Real property - discontinued     1,121            3,208
            operations
             Leasing costs (includes
            acquired intangibles) -             1                149
            discontinued operations
             Company's share of
            unconsolidated real estate          4,149            3,390
            ventures
Funds from operations                           $            $    
                                                51,987          47,407
      Funds from operations allocable to        (259)            (318)
      unvested restricted shareholders
Funds from operations available to common       $            $    
share and unit holders (FFO)                    51,728          47,089
FFO per share - fully diluted                   $          $      
                                                0.35             0.32
      Capital market and transactional items    $         $      
                                                14              189
      Core FFO, excluding capital market and    $            $    
      transactional items                       51,742          47,278
      Core FFO per share, excluding capital     $          $      
      market and transactional items - fully    0.35             0.32
      diluted
Weighted-average shares/units outstanding -     146,446,730      145,901,718
fully diluted
Distributions paid per common share             $          $      
                                                0.15             0.15
FFO payout ratio (Distributions paid per       42.9%            46.9%
common share / FFO per diluted share)
      Core FFO payout ratio, excluding capital  42.9%            46.9%
      market and transactional items
CASH AVAILABLE FOR DISTRIBUTION (CAD):
Funds from operations available to common       $            $    
share and unit holders                          51,728          47,089
Add (deduct):
      Rental income from straight-line rent,    (5,516)          (6,930)
      including discontinued operations
      Financing Obligation - 3141 Fairview      (150)            (176)
      Drive
      Deferred market rental income, including  (1,795)          (1,441)
      discontinued operations
      Company's share of unconsolidated real
      estate ventures' straight-line and        (388)            (323)
      deferred market rent
      Straight-line and deferred market ground  498              498
      rent expense activity
      Stock-based compensation costs            1,851            1,290
      Fair market value amortization -          91               91
      mortgage notes payable
      Losses from early extinguishment of debt  3                248
      Acquisition-related costs                 11               (67)
      Sub-total certain items                   (5,395)          (6,810)
Less: Revenue maintaining capital
      expenditures:
             Building improvements          (854)            (878)
             Tenant improvements            (6,628)          (8,944)
             Lease commissions              (5,778)          (2,476)
            Total revenue maintaining capital   (13,260)         (12,298)
            expenditures
Cash available for distribution                 $            $    
                                                33,073          27,981
CAD per share - fully diluted                  $          $      
                                                0.23             0.19
Weighted-average shares/units outstanding -     146,446,730      145,901,718
fully diluted
Distributions paid per common share             $          $      
                                                0.15             0.15
CAD payout ratio (Distributions paid per        65.2%            78.9%
common share / CAD per diluted share)







BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - 1ST QUARTER
(unaudited and in thousands)
Of the 214 properties owned by the Company as of March 31, 2013, a total of
208 properties ("Same Store Properties") containing an aggregate of 23.3
million net rentable square feet were owned for the entire three-month periods
ended March 31, 2013 and 2012. Average occupancy for the Same Store
Properties was 87.7% during 2013 and 86.8% during 2012. The following table
sets forth revenue and expense information for the Same Store Properties:
                                               Three Months Ended March 31,
                                               2013             2012
Revenue
      Rents                                    $           $     
                                               112,467          110,201
      Tenant reimbursements                    19,572           18,480
      Termination fees                         496              1,490
      Other                                    722              1,369
                                               133,257          131,540
Operating expenses
      Property operating expenses              40,481           39,987
      Real estate taxes                        13,545           13,243
      Net operating income                     $          $      
                                               79,231           78,310
      Net operating income - percentage change 1.2%
      over prior year
      Net operating income, excluding          $          $      
      termination fees & other                 78,013           75,451
      Net operating income, excluding
      termination fees & other - percentage    3.4%
      change over prior year
Net operating income              $          $      
                                               79,231           78,310
                 Straight line rents       (4,643)          (6,436)
                 Above/below market rent   (1,500)          (1,437)
                amortization
                 Non-cash ground rent      498              498
      Cash - Net operating income              $          $      
                                               73,586           70,935
      Cash - Net operating income - percentage 3.7%
      change over prior year
      Cash - Net operating income, excluding   $          $      
      termination fees & other                 72,368           68,076
      Cash - Net operating income, excluding
      termination fees & other - percentage    6.3%
      change over prior year
The following table is a reconciliation of Net
Loss to Same Store net operating income:
                                               Three Months Ended March 31,
                                               2013             2012
Net income:                                    $          $      
                                                3,919           9,336
Add/(deduct):
      Interest income                          (58)             (483)
      Interest expense                         30,914           34,144
      Deferred financing costs                 1,161            1,311
      Interest expense - financing obligation  218              182
      Equity in income of real estate ventures (1,535)          (44)
      Depreciation and amortization            49,861           48,096
      Loss on early extinguishment of debt     3                248
      General & administrative expenses        6,551            6,050
      Total discontinued operations            (5,922)          (17,195)
                Consolidated net operating     85,112           81,645
                income
Less: Net operating income of non same store  (2,346)          98
properties
Less: Eliminations and non-property specific  (3,535)          (3,433)
net operating income
                Same Store net operating       $          $      
                income                         79,231           78,310

SOURCE Brandywine Realty Trust

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