Brandywine Realty Trust Reports $0.40 Core FFO per Diluted Share for the Third Quarter of 2013, Increases 2013 Core FFO Guidance

Brandywine Realty Trust Reports $0.40 Core FFO per Diluted Share for the Third
Quarter of 2013, Increases 2013 Core FFO Guidance Range to $1.38 to $1.42 per
  Diluted Share and Provides Initial 2014 FFO Guidance of $1.40 to $1.49 per
                                Diluted Share

PR Newswire

RADNOR, Pa., Oct. 23, 2013

RADNOR, Pa., Oct. 23, 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
nine-month period ended September 30, 2013.

"The third quarter was a solid continuation of our 2013 Business Plan
execution. We improved occupancy and preleasing levels, achieved solid same
store NOI growth, realized positive leasing absorption and posted strong
mark-to-market on new and renewal leasing activity," stated Gerard H. Sweeney,
President and Chief Executive Officer of Brandywine Realty Trust. "We were
very active on the investment front with the Austin DRA joint venture and
Commerce Square transactions. Our liquidity remains exceptionally strong and
balance sheet improvement continues. 2014 will maintain the momentum we have
established over the past two years with rising occupancy and leasing levels
leading to further improvements in our operating platform. Our forward
leasing pipeline and limited 2014 expiration schedule give us confidence that
we will generate solid NOI growth, strong same store performance, and positive
rental rate mark-to-market. As a result, we are increasing our previously
issued 2013 Core FFO guidance to a range of $1.38 to $1.42 per diluted share
and are providing initial 2014 FFO guidance of $1.40 to $1.49 as we approach
2014 with increased confidence."

Financial Highlights – Third Quarter

  oNet income allocated to common shares totaled $9.2 million or $0.06 per
    diluted share in the third quarter of 2013 compared to net income of $13.9
    million or $0.10 per diluted share in the third quarter of 2012.
  oCore Funds from Operations available to common shares and units (FFO) in
    the third quarter of 2013 totaled $63.2 million or $0.40 per diluted share
    versus $57.8 million or $0.39 per diluted share in the third quarter of
    2012. Our third quarter 2013 Core FFO payout ratio was 37.5% ($0.15
    common share distribution / $0.40 Core FFO per diluted share). FFO per
    the NAREIT definition totaled $63.0 million or $0.39 per diluted share in
    the third quarter of 2013 compared to $57.7 million or $0.39 per diluted
    share in the third quarter of 2012.
  oIn the third quarter of 2013, we incurred $19.3 million of revenue
    maintaining capital expenditures which along with other adjustments to
    FFO, resulted in $27.1 million or $0.17 per diluted share of Cash
    Available for Distribution (CAD) versus $30.3 million or $0.21 per diluted
    share in the third quarter of 2012 when we incurred $10.5 million of
    revenue maintaining capital expenditures. Our third quarter 2013 CAD
    payout ratio was 88.2% ($0.15 common share distribution / $0.17 CAD per
    diluted share).

Financial Highlights – Nine Months

  oNet income allocated to common shares totaled $16.5 million or $0.11 per
    diluted share in the first nine months of 2013 compared to net income of
    $22.6 million or $0.16 per diluted share in the first nine months of 2012.
  oCore FFO available to common shares and units in the first nine months of
    2013 totaled $165.2 million or $1.07 per diluted share versus $153.1
    million or $1.05 per diluted share in the first nine months of 2012. Our
    Core FFO payout ratio for the first nine months of 2013 was 42.1% ($0.45
    common share distribution / $1.07 Core FFO per diluted share). FFO per
    the NAREIT definition totaled $163.6 million or $1.06 per diluted share in
    the first nine months of 2013 compared to $149.4 million or $1.02 per
    diluted share in the first nine months of 2012.
  oIn the first nine months of 2013, we incurred $47.0 million of revenue
    maintaining capital expenditures which along with other adjustments to
    FFO, resulted in $90.6 million or $0.58 per diluted share of CAD versus
    $88.7 million or $0.61 per diluted share in the first nine months of 2012
    when we incurred $34.5 million of revenue maintaining capital
    expenditures. Our CAD payout ratio for the first nine months of 2013 was
    77.6% ($0.45 common share distribution / $0.58 CAD per diluted share).

Portfolio Highlights

  oIn the third quarter of 2013, our net operating income (NOI) excluding
    termination revenues and other income items increased 4.6% on a GAAP basis
    and 4.9% on a cash basis for our 203 same store properties, which were
    88.2% and 87.1% occupied on September 30, 2013 and September 30, 2012,
    respectively.
  oDuring the third quarter of 2013, we commenced occupancy on 832,389 square
    feet of total leasing activity including 384,691 square feet of renewals,
    279,464 square feet of new leases and 168,234 square feet of tenant
    expansions. We have an additional 707,694 square feet of executed new
    leasing scheduled to commence subsequent to September 30, 2013.
  oDuring the third quarter of 2013, we achieved a 70.6% tenant retention
    ratio in our core portfolio with positive net absorption of 49,290 square
    feet. During the third quarter of 2013, we experienced a 9.5% increase on
    our renewal rental rates and a 9.3% increase on our new lease/expansion
    rental rates, both on a GAAP basis.
  oAt September 30, 2013, our core portfolio of 205 properties comprising
    23.3 million square feet was 88.3% occupied and 91.3% leased (reflecting
    new leases commencing after September 30, 2013). We held a vacant, 39,330
    square foot property for sale at September 30, 2013.

Investment Highlights

  oDuring the third quarter of 2013 as previously announced, we entered into
    an agreement with Parkway Properties, Inc. to acquire 74% of their
    prospective 75% interests in One and Two Commerce Square, two 41-story
    office towers totaling 1,896,142 square feet, located in Philadelphia's
    Central Business District in which we currently hold 25% interests and
    Thomas Properties Group Inc. affiliates hold 75% interests. Based on a
    $331.8 million valuation of the properties and subject to our assumption
    of two existing, first mortgage loans totaling $237.5 million, we expect
    to fund our required $69.1 million payment from available cash balances.
    The purchase of these interests is expected to close by the end of 2013,
    subject to customary closing conditions and completion of the pending
    merger between Parkway and Thomas.
  oDuring the third quarter of 2013 as previously announced, we entered into
    an additional agreement with Parkway to acquire Four Points Centre, two
    three-story buildings totaling 193,862 square feet located in the
    northwest submarket of Austin, Texas, for $42.0 million and to acquire 19
    acres of adjoining land for $9.0 million. These acquisitions are subject
    to satisfaction of our ongoing due diligence process, customary closing
    conditions and completion of the pending merger between Parkway and
    Thomas.
  oOn October 14, 2013 as previously announced, Brandywine and an affiliate
    of The Shooshan Company announced the formation of a 50/50 joint venture
    to build 4040 Wilson Boulevard, a 426,900 square foot office building
    representing the final phase of the eight-building, mixed-use, Liberty
    Center complex developed by Shooshan in the Ballston submarket of
    Arlington, Virginia. Shooshan contributed its land parcel to the venture,
    while Brandywine will contribute up to $36.0 million in cash of which
    $13.0 million has been funded to date. Groundbreaking will occur upon
    reaching certain pre-leasing levels, at which point the joint venture
    expects to seek third-party construction financing.
  oOn October 16, 2013 as previously announced, we closed on the formation of
    a 50/50 joint venture with an affiliate of DRA Advisors LLC which
    simultaneously acquired our wholly-owned Austin, Texas office portfolio
    comprising 7 properties and 1,398,826 square feet along with related
    assets for $330.0 million. The joint venture has completed $230.6 million
    of related mortgage financing with a weighted-average maturity of 5.0
    years and an expected weighted-average interest rate of 3.75%, resulting
    in $271.5 million of net proceeds to us which we will use for general
    corporate purposes. We will provide property management and leasing
    services to the joint venture and are obligated to fund the first $5.2
    million of capital expenditures related to these properties.
  oWe are continuing the $18.7 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 will fund the remaining $1.9 million from available corporate
    funds as we complete the lease-up of this redevelopment in early 2014. As
    of September 30, 2013, 660 West Germantown Pike was 80.3% leased and
    occupied.
  oWe are continuing the $7.5 million development of 200 Radnor Chester Road,
    a 17,884 square foot restaurant and retail center adjoining our Radnor,
    Pennsylvania office properties. We will fund the remaining $2.9 million
    from available corporate funds in anticipation of the year-end 2013
    completion date. As of September 30, 2013, 200 Radnor Chester Road was
    80.1% pre-leased.
  oWe are continuing the $158.5 million development of evo at Cira South
    (formerly known as the Grove), a 33-story, 850-bed student housing tower
    in the University City submarket of Philadelphia, Pennsylvania, which we
    are developing in a 30/30/40 joint venture with Campus Crest Communities,
    Inc. (30%) and Harrison Street Real Estate Capital (40%), and which we
    expect to complete in the third quarter of 2014. The joint venture has
    arranged a $97.8 million construction loan which will begin to fund later
    this year once the partners have fulfilled their $60.7 million equity
    contributions, of which $46.4 million has been funded as of September 30,
    2013. We have satisfied $13.9 million of our $18.2 million 30% share of
    the equity commitment and will fund our remaining $4.3 million commitment
    from available corporate funds.
  oWe are continuing the $77.0 million development of The Parc at Plymouth
    Meeting, a 398-unit multi-family project in Plymouth Meeting,
    Pennsylvania, in a 50/50 joint venture with Toll Brothers which we expect
    to complete by the end of 2015. The partners have fully funded $31.0
    million of project equity with our share satisfied by our contribution of
    the underlying land parcel. The construction costs will be funded from a
    pending $56.0 million construction loan whose closing will provide a $4.0
    million return of capital to us.

Capital Markets Highlights

  oAt September 30, 2013, our net debt to gross assets measured 40.9%,
    reflecting the fact that we had no outstanding balance on our $600.0
    million unsecured revolving credit facility and $185.5 million of cash and
    cash equivalents on hand.
  oFor the quarter ended September 30, 2013, we had a 2.7 EBITDA to interest
    coverage ratio and a 6.8 ratio of net debt to annualized quarterly EBITDA
    reflecting our consolidated EBITDA excluding certain capital market and
    transactional items and our pro rata share of unconsolidated EBITDA,
    interest and debt.

Distributions
On September 10, 2013, our Board of Trustees declared a quarterly dividend
distribution of $0.15 per common share that was paid on October 18, 2013 to
shareholders of record as of October 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 October 15, 2013 to holders of
record as of September 30, 2013.

2013 Earnings, FFO and Core 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 $1.37 to $1.41 versus the prior range of
$1.36 to $1.41 and are similarly revising our 2013 Core FFO guidance to be in
a range of $1.38 to $1.42 versus the prior range of $1.37 to $1.42 per diluted
share reflecting $0.01 of incurred capital market and transactional costs.
Embedded within the revised 2013 guidance ranges is just under $0.02 per
diluted share of net unplanned dilution in the fourth quarter of 2013 from the
combined impact of the Austin JV transaction and a pending acquisition. This
guidance is provided for informational purposes and is subject to change. The
following is a reconciliation of the calculation of 2013 FFO, 2013 Core FFO
and earnings per diluted share:

Guidance for 2013             Range or Value
 Earnings per diluted share allocated to common  $0.08 to $ 0.12
shareholders
 Less: gain on sale of discontinued operations   (0.09) (0.09)
and other transactions
 Plus: real estate depreciation and             1.38 1.38
amortization
 FFO per diluted share                       $ 1.37 to $ 1.41
  Adjusted for capital market and          0.01 0.01
transactional items
 Core FFO per diluted share                     $1.38 to $1.42

Our 2013 Core FFO guidance does not include income arising from the sale of
undepreciated real estate. Our 2013 earnings, FFO and Core 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
assumptions include:

  oOccupancy of 90% by year-end 2013 with 92% leased (89.3% occupied
    inclusive of the 0.7% adverse impact from the Austin JV and the One and
    Two Commerce Square acquisition);
  o5.0% – 7.0% increase (GAAP) in overall lease rates with a resulting 3.0% –
    5.0% increase in 2013 same store NOI (GAAP);
  oNo additional capital markets activity beyond $9.3 million of completed
    fourth quarter note repurchases, the completed Austin JV financings and
    the prospective One and Two Commerce Square debt assumption;
  o$342.1 million of completed sales activity incorporating $2.6 million for
    the recently closed 1336 Enterprise Drive sale and $162.4 million for 50%
    of the recently closed Austin joint venture (50% of $330.0 million less
    the $5.2 million funding obligation);
  o$34.2 million of completed acquisitions plus $245.5 million for the One
    and Two Commerce year-end acquisition (74% of $331.8 million) and $24.6
    million for a pending fourth quarter acquisition; and
  oFFO and Core FFO per diluted share based on 156.2 million fully diluted
    weighted average common shares with Core FFO adjusted for items incurred
    through September 30, 2013.

2014 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 2014 FFO per diluted share will be in a
range of $1.40 to $1.49. This guidance is provided for informational purposes
and is subject to change. The following is a reconciliation of the
calculation of 2014 FFO and earnings per diluted share:

Guidance for                                        Range or Value
2014
 Earnings per diluted share allocated to common   $(0.02) to $
shareholders                                      0.07
 Plus: real estate depreciation and              1.42
amortization                                      1.42
 FFO per diluted share                          $ 1.40to $
                                                    1.49

Our 2014 FFO guidance does not include income arising from the sale of
undepreciated real estate. Our 2014 earnings and FFO per diluted share each
reflect $0.075 per diluted share of non-cash income attributable to the fourth
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:

  oOccupancy improving to a range of 91 – 92% by year-end 2014 with 93 – 94%
    leased each now incorporating the heretofore unplanned 0.7% reduction
    attributable to the Austin JV transaction and the One and Two Commerce
    acquisition;
  o6.0% – 8.0% increase (GAAP) in overall lease rates with a resulting 3.0% –
    5.0% increase in 2014 same store NOI (GAAP);
  oNo capital markets or acquisition activity;
  o$150.0 million of aggregate sales activity at an assumed 8.5%
    capitalization rate; and
  oFFO per diluted share based on 160.4 million fully diluted weighted
    average common shares.

We will provide a Core FFO calculation if our 2014 activity necessitates an
adjustment for capital market or transactional items.

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.

Third Quarter Earnings Call and Supplemental Information Package
We will host a conference call on Thursday, October 24, 2013 at 9:00 a.m.
EDT. The conference call can be accessed by calling 1-800-683-1525 and
referencing conference ID #75723956. Beginning two hours after the conference
call, a taped replay of the call can be accessed 24 hours a day through
Thursday, November 7, 2013 by calling 1-855-859-2056 and providing access code
#75723956. 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 2013 Conference Call
We anticipate we will release our fourth quarter 2013 earnings on Wednesday,
February 5, 2014, after the market close and will host our fourth quarter 2013
conference call on Thursday, February 6, 2014, 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 283 properties and 32.9 million square feet, including 209
properties and 24.1 million square feet owned on a consolidated basis and 54
properties and 6.2 million square feet in 18 unconsolidated real estate
ventures all as of September 30, 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)
                                          September 30,      December 31,
                                          2013               2012
                                          (unaudited)
ASSETS
Real estate investments:
      Rental properties                   $   4,631,910   $   4,726,169
      Accumulated depreciation            (998,409)          (954,665)
      Rental property, net                3,633,501          3,771,504
      Construction-in-progress            52,702             48,950
      Land inventory                      94,097             102,439
Real estate investments, net              3,780,300          3,922,893
Cash and cash equivalents                 185,517            1,549
Accounts receivable, net                  13,718             13,232
Accrued rent receivable, net              128,232            122,066
Assets held for sale, net                 2,371              -
Investment in real estate ventures        194,572            193,555
Deferred costs, net                       126,260            122,243
Intangible assets, net                    54,457             70,620
Notes receivable                          7,026              7,226
Other assets                              65,689             53,325
      Total assets                        $   4,558,142   $   4,506,709
LIABILITIES AND EQUITY
Mortgage notes payable, including         $     434,895  $     442,974
premiums
Unsecured credit facility                 -                  69,000
Unsecured term loans                      450,000            450,000
Unsecured senior notes, net of discounts  1,492,296          1,503,356
Accounts payable and accrued expenses     89,087             71,579
Distributions payable                     25,579             23,652
Deferred income, gains and rent           69,637             82,947
Acquired lease intangibles, net           28,500             33,859
Other liabilities                         46,990             55,826
      Total liabilities                   2,636,984          2,733,193
Brandywine Realty Trust's equity:
 Preferred shares - Series E              40                 40
 Common shares                            1,565              1,434
 Additional paid-in capital               2,970,576          2,780,194
 Deferred compensation payable in common  5,431              5,352
 stock
 Common shares held in grantor trust      (5,431)            (5,352)
 Cumulative earnings                      501,735            479,734
 Accumulated other comprehensive loss     (5,825)            (15,918)
 Cumulative distributions                 (1,567,202)        (1,493,206)
      Total Brandywine Realty Trust's     1,900,889          1,752,278
      equity
Non-controlling interests                 20,269             21,238
      Total equity                        1,921,158          1,773,516
      Total liabilities and equity        $   4,558,142   $   4,506,709



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,
                          2013         2012          2013         2012
Revenue
 Rents                    $       $        $       $     
                          116,479      108,658       347,680      327,362
 Tenant reimbursements    20,699       20,294        60,615       57,179
 Termination fees         2,040        931           2,946        2,522
 Third party management
 fees, labor              3,263        3,007         9,652        9,021
 reimbursement and
 leasing
 Other                    975          1,630         3,305        4,029
Total revenue             143,456      134,520       424,198      400,113
Operating Expenses
 Property operating       40,661       38,783        119,522      112,961
 expenses
 Real estate taxes        14,190       13,486        42,706       40,430
 Third party management   1,317        1,298         4,105        3,812
 expenses
 Depreciation and         50,613       46,955        149,423      142,262
 amortization
 General &                6,436        6,080         20,322       18,209
 administrative expenses
Total operating expenses  113,217      106,602       336,078      317,674
Operating income          30,239       27,918        88,120       82,439
Other income (expense)
 Interest income          268          311           448          2,631
 Historic tax credit      11,853       11,840        11,853       11,840
 transaction income
 Interest expense         (30,338)     (32,620)      (91,689)     (99,745)
 Deferred financing       (1,158)      (1,218)       (3,502)      (3,790)
 costs
 Interest expense -       (264)        (230)         (693)        (608)
 financing obligation
 Equity in income of      714          500           3,757        1,382
 real estate ventures
 Gain from remeasurement
 of investment in a real  -            -             7,847        -
 estate venture
 Net gain on real estate  -            -             3,683        -
 venture transactions
 Net loss on sale of
 undepreciated real       (129)        -             (129)        -
 estate
 Loss on real estate      -            (950)         -            (950)
 venture formation
 Loss on early            (11)         (51)          (1,127)      (1,549)
 extinguishment of debt
Income (loss) from        11,174       5,500         18,568       (8,350)
continuing operations
Discontinued operations:
 Income from              (70)         1,649         590          6,803
 discontinued operations
 Net gain (loss) on
 disposition of           (16)         9,940         3,029        34,774
 discontinued operations
Total discontinued        (86)         11,589        3,619        41,577
operations
Net income                11,088       17,089        22,187       33,227
Net (income) loss from
discontinued operations
attributable
 to non-controlling       1            (211)         (48)         (760)
 interests - LP units
Net (income) loss from
continuing operations
attributable to
 non-controlling         (106)        (49)          (147)        335
 interests - LP units
Net (income)
attributable to           (105)        (260)         (195)        (425)
non-controlling
interests
Net income attributable
to Brandywine Realty      10,983       16,829        21,992       32,802
Trust
Preferred share           (1,725)      (2,785)       (5,175)      (7,832)
distributions
Preferred share           -            -             -            (2,090)
redemption charge
Amount allocated to
unvested restricted       (85)         (95)          (278)        (286)
shareholders
Net income attributable   $       $        $       $     
to common shareholders      9,173     13,949       16,539      22,594
PER SHARE DATA
Basic earnings per        $       $        $       $     
common share                0.06      0.10       0.11      0.16
Basic weighted-average    156,703,348  143,424,485   151,933,441  143,182,911
shares outstanding
Diluted earnings per      $       $        $       $     
common share                0.06      0.10       0.11      0.16
Diluted weighted-average  157,992,082  144,128,010   153,142,825  143,182,911
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,
                           2013         2012          2013         2012
Reconciliation of Net
Income to Funds from
Operations:
Net income attributable    $       $        $       $     
to common shareholders      9,173      13,949        16,539       22,594
Add (deduct):
      Net income (loss)
      attributable to
      non-controlling      106          49            147          (335)
      interests - LP
      units
      Amount allocated to
      unvested restricted  85           95            278          286
      shareholders
      Net gain on real
      estate venture       -            -             (3,683)      -
      transactions
      Loss on real estate  -            950           -            950
      venture formation
      Net income (loss)
      from discontinued
      operations
      attributable to      (1)          211           48           760
      non-controlling
      interests - LP
      units
      Net (gain) loss on
      disposition of       16           (9,940)       (3,029)      (34,774)
      discontinued
      operations
      Gain from
      remeasurement of     -            -             (7,847)      -
      investment in real
      estate venture
      Depreciation and
      amortization:
         Real property
        - continuing       41,516       37,846        121,911      111,898
        operations
         Leasing costs
        (includes
        acquired           9,061        9,067         27,410       30,164
        intangibles) -
        continuing
        operations
         Real property
        - discontinued     17           1,782         1,766        7,814
        operations
         Leasing costs
        (includes
        acquired           1            6             3            291
        intangibles) -
        discontinued
        operations
         Company's
        share of
        unconsolidated     3,293        3,971         10,676       10,528
        real estate
        ventures
Funds from operations      $       $        $        $    
                           63,267       57,986        164,219      150,176
      Funds from
      operations
      allocable to         (227)        (254)         (662)        (769)
      unvested restricted
      shareholders
Funds from operations      $       $        $        $    
available to common share  63,040       57,732        163,557      149,407
and unit holders (FFO)
FFO per share - fully      $       $        $       $     
diluted                     0.39       0.39         1.06      1.02
      Capital market and   $       $        $       $     
      transactional items    209        117        1,649       3,678
      Core FFO, excluding  $       $        $        $    
      capital market and   63,249       57,849        165,206      153,085
      transactional items
      Core FFO per share,
      excluding capital    $       $        $       $     
      market and            0.40       0.39         1.07      1.05
      transactional items
      - fully diluted
Weighted-average
shares/units outstanding   159,755,821  146,785,731   154,940,454  146,408,921
- fully diluted
Distributions paid per     $       $        $       $     
common share                0.15       0.15         0.45      0.45
FFO payout ratio
(Distributions paid per    38.5%        38.5%         42.5%        44.1%
common share / FFO per
diluted share)
      Core FFO payout
      ratio, excluding     37.5%        38.5%         42.1%        42.9%
      capital market and
      transactional items
CASH AVAILABLE FOR
DISTRIBUTION (CAD):
Funds from operations      $       $        $        $    
available to common share  63,040       57,732        163,557      149,407
and unit holders
Add (deduct):
      Rental income from
      straight-line rent,
      including            (5,086)      (4,942)       (16,336)     (17,804)
      discontinued
      operations
      Financing
      Obligation - 3141    (244)        (203)         (549)        (557)
      Fairview Drive
      Deferred market
      rental income,
      including            (1,815)      (1,582)       (5,403)      (4,538)
      discontinued
      operations
      Company's share of
      unconsolidated real
      estate ventures'     (137)        (349)         (855)        (951)
      straight-line and
      deferred market
      rent
      Historic tax credit  (11,853)     (11,840)      (11,853)     (11,840)
      transaction income
      Preferred unit       -            -             -            2,090
      redemption charge
      Straight-line and
      deferred market      392          498           1,317        1,494
      ground rent expense
      activity
      Stock-based          2,003        1,337         5,907        4,034
      compensation costs
      Fair market value
      amortization -       91           91            273          273
      mortgage notes
      payable
      Losses from early
      extinguishment of    11           51            1,127        1,549
      debt
      Acquisition-related  69           64            370          21
      costs
      Sub-total certain    (16,569)     (16,875)      (26,002)     (26,229)
      items
      Revenue maintaining
Less: capital
      expenditures:
         Building      (680)        (1,551)       (2,402)      (2,692)
        improvements
         Tenant        (9,147)      (6,156)       (25,769)     (23,913)
        improvements
         Lease         (9,507)      (2,826)       (18,827)     (7,866)
        commissions
        Total revenue
        maintaining        (19,334)     (10,533)      (46,998)     (34,471)
        capital
        expenditures
Cash available for         $       $        $       $     
distribution               27,137       30,324        90,557       88,707
CAD per share - fully      $       $        $       $     
diluted                    0.17       0.21         0.58      0.61
Weighted-average
shares/units outstanding   159,755,821  146,785,731   154,940,454  146,408,921
- fully diluted
Distributions paid per     $       $        $       $     
common share                0.15       0.15         0.45      0.45
CAD payout ratio
(Distributions paid per    88.2%        71.4%         77.6%        73.8%
common share / CAD per
diluted share)



BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - 3RD QUARTER
(unaudited and in thousands)
Of the 210 properties owned by the Company as of September 30, 2013, a total
of 203 properties ("Same Store Properties") containing an aggregate of 23.1
million net rentable square feet were owned for the entire three-month periods
ended September 30, 2013 and 2012. Average occupancy for the Same Store
Properties was 88.1% during 2013 and 86.6% during 2012. The following table
sets forth revenue and expense information for the Same Store Properties:
                                              Three Months Ended September 30,
                                              2013              2012
Revenue
     Rents                                    $            $     
                                              112,623           108,873
     Tenant reimbursements                    19,764            20,042
     Termination fees                         2,040             931
     Other                                    753               1,642
                                              135,180           131,488
Operating expenses
     Property operating expenses              40,768            40,979
     Real estate taxes                        13,359            13,111
     Net operating income                     $           $      
                                              81,053            77,398
     Net operating income - percentage change 4.7%
     over prior year
     Net operating income, excluding          $           $      
     termination fees & other                 78,260            74,825
     Net operating income, excluding
     termination fees & other - percentage    4.6%
     change over prior year
Net operating income             $           $      
                                              81,053            77,398
                Straight line rents       (4,348)           (4,369)
                Above/below market rent   (1,507)           (1,574)
               amortization
                Non-cash ground rent      392               498
     Cash - Net operating income              $           $      
                                              75,590            71,953
     Cash - Net operating income - percentage 5.1%
     change over prior year
     Cash - Net operating income, excluding   $           $      
     termination fees & other                 72,797            69,380
     Cash - Net operating income, excluding
     termination fees & other - percentage    4.9%
     change over prior year
The following table is a reconciliation of
Net Income to Same Store net operating
income:
                                              Three Months Ended September 30,
                                              2013              2012
Net income:                                   $           $      
                                              11,088            17,089
Add/(deduct):
     Interest income                          (268)             (311)
     Historic tax credit transaction income   (11,853)          (11,840)
     Interest expense                         30,338            32,620
     Deferred financing costs                 1,158             1,218
     Interest expense - financing obligation  264               230
     Equity in income of real estate ventures (714)             (500)
     Net loss on sale of undepreciated real   129               -
     estate
     Depreciation and amortization            50,613            46,955
     Loss on real estate venture formation    -                 950
     Loss on early extinguishment of debt     11                51
     General & administrative expenses        6,436             6,080
     Total discontinued operations            86                (11,589)
               Consolidated net operating     87,288            80,953
               income
Less: Net operating income of non same store (3,008)           (195)
properties
Less: Eliminations and non-property specific (3,227)           (3,360)
net operating income
               Same Store net operating       $           $      
               income                         81,053            77,398



BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS -NINE MONTHS
(unaudited and in thousands)
Of the 210 properties owned by the Company as of September 30, 2013, a total
of 203 properties ("Same Store Properties") containing an aggregate of 23.1
million net rentable square feet were owned for the entire nine-month periods
ended September 30, 2013 and 2012. Average occupancy for the Same Store
Properties was 88.1% during 2013 and 87.4% during 2012. The following table
sets forth revenue and expense information for the Same Store Properties:
                                               Nine Months Ended September 30,
                                               2013             2012
Revenue
     Rents                                     $           $     
                                               337,601          328,596
     Tenant reimbursements                     58,074           56,502
     Termination fees                          2,946            2,522
     Other                                     2,331            3,875
                                               400,952          391,495
Operating expenses
     Property operating expenses               120,466          119,342
     Real estate taxes                         40,165           39,406
     Net operating income                      $           $     
                                               240,321          232,747
     Net operating income - percentage change  3.3%
     over prior year
     Net operating income, excluding           $           $     
     termination fees & other                  235,044          226,350
     Net operating income, excluding
     termination fees & other - percentage     3.8%
     change over prior year
Net operating income              $           $     
                                               240,321          232,747
                Straight line rents        (13,877)         (16,327)
                Above/below market rent    (4,492)          (4,526)
               amortization
                Non-cash ground rent       1,317            1,494
     Cash - Net operating income               $           $     
                                               223,269          213,388
     Cash - Net operating income - percentage  4.6%
     change over prior year
     Cash - Net operating income, excluding    $           $     
     termination fees & other                  217,992          206,991
     Cash - Net operating income, excluding
     termination fees & other - percentage     5.3%
     change over prior year
The following table is a reconciliation of Net
Income to Same Store net operating income:
                                               Nine Months Ended September 30,
                                               2013             2012
Net income:                                    $          $      
                                               22,187           33,227
Add/(deduct):
     Interest income                           (448)            (2,631)
     Historic tax credit transaction income    (11,853)         (11,840)
     Interest expense                          91,689           99,745
     Deferred financing costs                  3,502            3,790
     Interest expense - financing obligation   693              608
     Equity in income of real estate ventures  (3,757)          (1,382)
     Gain from remeasurement of investment in  (7,847)          -
     a real estate venture
     Net gain on real estate venture           (3,683)          -
     transactions
     Net loss on sale of undepreciated real    129              -
     estate
     Loss on real estate venture formation     -                950
     Loss on early extinguishment of debt      1,127            1,549
     Depreciation and amortization             149,423          142,262
     General & administrative expenses         20,322           18,209
     Total discontinued operations             (3,619)          (41,577)
               Consolidated net operating      257,865          242,910
               income
Less: Net operating income of non same store  (8,040)          (109)
properties
Less: Eliminations and non-property specific  (9,504)          (10,054)
net operating income
               Same Store net operating income $           $     
                                               240,321          232,747





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