$0.34 FFO per Diluted Share for Fourth Quarter 2009; $1.84 FFO per
Diluted Share for Full Year 2009 88.2% Occupied and 89.6% Leased in
the Core Portfolio Raises 2010 FFO Guidance Range to $1.25 to $1.34
per Diluted Share RADNOR, Pa., Feb. 24 /PRNewswire-FirstCall/ --
Brandywine Realty Trust (NYSE:BDN), a real estate investment trust
focused on the ownership, management and development of Class A,
suburban and urban office properties in the mid-Atlantic region and
other selected markets throughout the United States, today reported
its financial and operating results for the three and twelve-month
periods ended December 31, 2009. "2009 was a very solid year for
Brandywine characterized by transformative capital market
accomplishments," stated Gerard H. Sweeney, President and Chief
Executive Officer of Brandywine Realty Trust. "We raised $1.2
billion of aggregate capital in a variety of transactions and in so
doing, strengthened our balance sheet, created significant
liquidity and positioned the company for future growth. In a
challenging economic climate, we took advantage of our leading
market presence to gain share from competitors, leasing 3.8 million
square feet in the process and maintaining portfolio occupancy."
Highlights for the full year included: -- Leased 3.8 million square
feet comprising 2.3 million square feet of renewals and 1.5 million
square feet of new leases; achieved a 66.9% tenant retention ratio
or 77.6% excluding early terminations. -- Sold $129.5 million of
non-core assets at an average cash capitalization rate of 8.5%. --
Executed a $256.5 million, 5.93%, twenty-year, fully-amortizing,
forward financing commitment on our 30th Street Post Office / IRS
development and adjacent Cira South garage which will fund upon
completion in August 2010. We also funded another $24 million out
of a total of up to $77 million of gross historic and new market
tax credit financing proceeds and expect to fund the remaining
balance of up to $34 million in 2010. -- Raised $242.5 million of
net proceeds through an equity offering of 40.25 million common
shares at $6.30 per share in June 2009. -- Closed two secured,
non-recourse mortgage loans aggregating $149.8 million on our One
and Two Logan office buildings in Philadelphia, Pennsylvania. --
Repurchased $444.7 million of our unsecured senior notes,
generating $23.2 million of aggregate gains and significantly
reducing our 2010, 2011 and 2012 maturities. -- Reaccessed the
unsecured debt market in September 2009 by issuing $250.0 million
of 7.50% unsecured senior notes due May 15, 2015. "Our stronger
financial footing and successful operations enabled us to raise our
common share dividend distribution by 50% to a $0.15 quarterly rate
beginning January 2010. For 2010, our primary focus is on leasing
office space, retaining existing tenants and continuing our program
of balance sheet strengthening," concluded Mr. Sweeney. Financial
Highlights - Fourth Quarter -- Net loss allocated to common shares
totaled ($6.1 million) or ($0.05) per diluted share in the fourth
quarter of 2009 compared to net income of $12.4 million or $0.14
per diluted share in the fourth quarter of 2008. Our weighted
average diluted share count increased to 128.6 million shares in
the fourth quarter of 2009 from 88.0 million shares in the fourth
quarter of 2008 due to our issuance of 40.25 million common shares
on June 2, 2009. -- Funds from operations available to common
shares and units (FFO) in the fourth quarter of 2009 totaled $45.7
million or $0.34 per diluted share compared to $55.3 million or
$0.61 per diluted share in the fourth quarter of 2008 ($66.2
million or $0.73 per diluted share excluding a $10.8 million
impairment provision). Our fourth quarter 2009 FFO payout ratio was
29.4% ($0.10 common share dividend paid / $0.34 FFO per share). Our
weighted average fully diluted share count for FFO (and CAD)
calculations increased to 132.9 million shares in the fourth
quarter of 2009 from 91.0 million shares in the fourth quarter of
2008 due to the aforementioned common share issuance. -- In the
fourth quarter of 2009, we incurred $10.0 million of revenue
maintaining capital expenditures which along with our other
adjustments to FFO, resulted in $32.6 million of cash available for
distribution (CAD) or $0.25 per diluted share compared to $51.8
million of CAD or $0.57 per diluted share in the fourth quarter of
2008 when we incurred $11.4 million of revenue maintaining capital
expenditures. Our fourth quarter 2009 CAD payout ratio was 40.0%
($0.10 common share dividend paid / $0.25 CAD per share). Financial
Highlights - Full Year 2009 -- Net loss allocated to common shares
totaled ($0.2 million) or $0.00 per diluted share in 2009 compared
to net income of $28.5 million or $0.32 per diluted share in the
2008. Our weighted average diluted share count increased to 113.3
million shares in 2009 from 87.6 million shares in 2008 primarily
due to the aforementioned common share issuance. -- FFO available
to common shares and units in 2009 totaled $213.5 million or $1.84
per diluted share ($217.2 million or $1.87 per diluted share
excluding a $3.7 million impairment provision) compared to $218.6
million or $2.40 per diluted share in 2008 ($236.3 million or $2.60
per diluted share excluding a $17.7 million impairment provision).
Our FFO payout ratio for 2009 was 32.6% ($0.60 common share
dividend paid / $1.84 FFO per share). Our weighted average fully
diluted share count for FFO (and CAD) calculations increased to
116.1 million shares for 2009 from 91.0 million shares in 2008
primarily due to the aforementioned common share issuance. -- For
the year ended December 31, 2009, we incurred $41.9 million of
revenue maintaining capital expenditures which along with our other
adjustments to FFO, resulted in $168.6 million of CAD or $1.45 per
diluted share compared to $182.2 million of CAD or $2.00 per
diluted share for the year ended December 31, 2008 when we incurred
$36.5 million of revenue maintaining capital expenditures. Our CAD
payout ratio for 2009 was 41.4% ($0.60 common share dividend paid /
$1.45 CAD per share). Portfolio Highlights -- In the fourth quarter
of 2009, our net operating income (NOI) excluding termination
revenues and other income items declined 11.4% on a GAAP basis and
10.8% on a cash basis for our 233 same store properties which were
88.4% and 91.9% occupied on December 31, 2009 and December 31,
2008, respectively. For the full year, our same store NOI declined
4.3% on a GAAP basis and 2.0% on a cash basis. -- During the fourth
quarter of 2009, we commenced occupancy on 883,951 square feet of
total leasing activity including 555,563 square feet of renewals,
239,185 square feet of new leases and 89,203 square feet of tenant
expansions. We currently have an additional 1,786,805 square feet
of executed leasing in place scheduled to commence subsequent to
December 31, 2009 including 322,859 square feet attributable to our
core portfolio and the balance attributable to our developments and
redevelopments. During the fourth quarter of 2009, we achieved an
82.9% retention rate in our core portfolio with positive net
absorption of 106,030 square feet excluding 142,147 square feet of
early terminations, or 70.1% overall. During the fourth quarter of
2009, we experienced a 3.9% increase on our renewal rental rates
and a 4.3% decline on our new lease and expansion rental rates,
both on a GAAP basis. -- At December 31, 2009, our core portfolio
was 88.2% occupied and 89.6% leased (reflecting leases which will
commence after December 31, 2009). We owned 245 properties at
December 31, 2009, encompassing 240 core properties aggregating
23.7 million square feet and five development/ redevelopment
properties aggregating 1.9 million square feet. Investment
Highlights -- During the fourth quarter of 2009 we completed the
previously disclosed sales of two properties in Trenton, New Jersey
for an aggregate purchase price of $85.0 million ($22.5 million of
which we deferred as a second mortgage loan to the buyer) and the
$7.9 million sale of a 40,508 square foot condominium interest in
our 100 Lenox Drive redevelopment in Lawrenceville, New Jersey to
the underlying tenant. Our completed 2009 sales totaled $129.5
million. -- Subsequent to quarter end, we sold a vacant 121,815
square foot office/flex building in Richmond, Virginia for a $10.9
million purchase price. The net proceeds of the sale were used to
repay balances on our unsecured revolving credit facility and for
general corporate purposes. -- At December 31, 2009, we were
proceeding on two developments and three redevelopments with total
project costs of $396.0 million of which a total of $142.6 million
remained to be funded in 2010 and which are now 92.4% leased. These
amounts include $355.5 million of total project costs for the
combined 30th Street Post Office (100% leased to the Internal
Revenue Service) and Cira South Garage (up to 92.6% leased to the
Internal Revenue Service) in Philadelphia, Pennsylvania of which
$128.5 million remained to be funded in 2010. Upon completion and
delivery of these projects, we will receive the proceeds of the
$256.5 million forward financing that has been escrowed pending the
completion. We are also finishing the lease-up of four recently
completed developments and four recently completed redevelopments
for which we expect to spend up to an additional $8.8 million in
2010 and which are now 84.8% leased. Capital Markets Highlights --
During the fourth quarter of 2009, we repaid the $102.6 million
remaining balance of our $275 million (original balance) unsecured
senior notes due November 2, 2009 using available cash and funds
borrowed under our unsecured revolving credit facility. -- During
the fourth quarter of 2009, we repurchased a total of $43.6 million
of our 2010 and 2011 (our exchangeable notes due 2026 with a put
date in October 2011) unsecured senior notes in a series of
open-market transactions generating an aggregate loss of ($0.5
million) on the early extinguishment of debt. During all of 2009,
we repurchased a total of $444.7 million of a combination of our
2009, 2010, 2011, 2012 and 2014 unsecured senior notes in a variety
of open-market transactions and public tenders generating $23.2
million of gains on the early extinguishment of debt. -- At
December 31, 2009, our net debt to gross assets measured 45.7%
compared to a peak of 54.3% at September 30, 2007, reflecting a
cumulative $783.5 million reduction in our net debt over that
period. At December 31, 2009, we had $92.0 million outstanding on
our $600.0 million unsecured revolving credit facility with $443.1
million available for use and drawdown. -- We achieved a 2.4 EBITDA
to interest coverage ratio for the quarter ended December 31, 2009
versus the 2.5 ratio we achieved for the quarter ended December 31,
2008 and recorded a 7.2 ratio of net debt to annualized recurring
quarterly EBITDA for the quarter ended December 31, 2009.
Distributions On December 8, 2009, our Board of Trustees declared a
quarterly dividend distribution of $0.15 per common share that was
paid in the first quarter on January 20, 2010 to shareholders of
record as of January 6, 2010. The January 2010 $0.15 quarterly
common share dividend represented a 50.0% increase from the
previous $0.10 quarterly dividend paid in October 2009. Our Board
also declared regular quarterly dividend distributions of $0.46875
per 7.50% Series C Cumulative Redeemable Preferred Share and
$0.460938 per 7.375% Series D Cumulative Redeemable Preferred Share
that were paid on January 15, 2010 to holders of record as of
December 30, 2009 of the Series C and Series D Preferred Shares,
respectively. 2010 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 raising our guidance for full year 2010 FFO per diluted
share to $1.25 to $1.34 from the previously issued range of $1.23
to $1.34. This guidance is provided for informational purposes and
is subject to change. The following is a reconciliation of the
calculation of 2010 FFO per diluted share and earnings per diluted
share: Guidance for 2010 Range or Value -----------------
-------------- Earnings (loss) per diluted share allocated to
common shareholders $(0.36) to $(0.27) Plus: real estate
depreciation and amortization 1.61 1.61 FFO per diluted share $1.25
to $1.34 Our 2010 FFO guidance does not include income arising from
future sales or impairments which may be taken in the future should
the circumstances arise, does not include any income from the sale
of undepreciated real estate in accordance with our current
practice. Accounting Disclosures On January 1, 2009, we adopted a
newly issued accounting standard for convertible debt instruments
which requires retrospective application. This adoption impacts our
exchangeable notes due 2026 with a put date in 2011 that had an
outstanding balance of $128.0 million as of December 31, 2009 and
which were originally issued in the amount of $345.0 million in
October 2006. The retrospective treatment requires us to bifurcate
the net proceeds of the exchangeable notes on a relative fair value
basis (based on the then market "straight debt" interest rate)
between unsecured debt and the equity conversion options issued in
the transaction and affects previously recognized interest expense,
capitalized interest and gain on extinguishment of debt associated
with the convertible notes, and all related calculations such as
net income per diluted share of the Company. On January 1, 2009, we
adopted a newly issued accounting standard for non-controlling
interest. The accounting standard affects the classification and
potential recognition of any non-controlling interest (formerly
called minority interest) relating to Operating Partnership
unit-holders and outside owners of our three consolidated real
estate ventures. The non-controlling interests related to the
Operating Partnership are reflected as a component of the Equity
section of our Consolidated Balance Sheet, instead of within the
"mezzanine" section. In addition, the non-controlling interests'
portion of earnings is now presented below net income. This
presentation is applied retrospectively. Non-GAAP Supplemental
Financial Measures We compute our financial results in accordance
with generally accepted accounting principles (GAAP). Although FFO,
NOI and CAD are non-GAAP financial measures, we believe that FFO,
NOI and CAD calculations are helpful to shareholders and potential
investors and are widely recognized measures of real estate
investment trust performance. At the end of this press release, we
have provided a reconciliation of the non-GAAP financial measures
to the most directly comparable GAAP measure. Funds from Operations
(FFO) We compute FFO in accordance with standards established by
the National Association of Real Estate Investment Trusts (NAREIT),
which may not be comparable to FFO reported by other REITs that do
not compute FFO in accordance with the NAREIT definition, or that
interpret the NAREIT definition differently than us. NAREIT defines
FFO as net income (loss) before non-controlling interests and
excluding gains (losses) on sales of property 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. For information purposes, we may
also provide FFO adjusted for impairment charges. Although our
calculation of FFO as adjusted differs from NAREIT's definition of
FFO and may not be comparable to that of other REITs and real
estate companies, we believe it provides a meaningful supplemental
measure of our operating performance because we believe that by
excluding impairment charges, shareholders and potential investors
are presented with an indicator of our operating performance that
more closely achieves the objectives of the real estate industry in
presenting FFO. 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 approved. 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 25 at 11:00 a.m. EST. The conference call can be accessed
by calling 1-800-683-1525 and referencing conference ID #44530689.
Beginning two hours after the conference call, a taped replay of
the call can be accessed 24 hours a day through Thursday, March 11,
2010 by calling 1-800-642-1687 and providing access code 44530689.
In addition, the conference call can be accessed via a webcast
located on our website at http://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 http://www.brandywinerealty.com/. Looking Ahead - First
Quarter 2010 Conference Call We anticipate that we will release our
first quarter 2010 earnings on Wednesday, April 28, 2010, after the
market close and will host our first quarter 2010 conference call
on Thursday, April 29, 2010, at 10:00 a.m. EST. We expect to issue
a press release in advance of these events to confirm 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, develops and manages
a primarily Class A, suburban and urban office portfolio
aggregating approximately 34.8 million square feet, including 25.4
million square feet which it currently owns on a consolidated
basis. For more information, visit our website at
http://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, 2008. We expect to file
our Form 10-K for the year ended December 31, 2009 on or before
March 1, 2010. 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 (unaudited, in thousands) December 31,
December 31, 2009 2008 ---- ---- ASSETS Real estate investments:
Operating properties $4,512,618 $4,608,320 Accumulated depreciation
(716,956) (639,688) -------- -------- 3,795,662 3,968,632
Construction-in-progress 271,962 122,219 Land inventory 97,368
100,516 ------ ------- 4,164,992 4,191,367 Cash and cash
equivalents 1,567 3,924 Cash in escrow - 31,385 Accounts
receivable, net 10,934 16,413 Accrued rent receivable, net 87,173
86,362 Investment in real estate ventures 75,458 71,028 Deferred
costs, net 106,097 89,327 Intangible assets, net 105,163 145,757
Notes receivable 59,008 48,048 Other assets 53,358 59,008 ------
------ Total assets $4,663,750 $4,742,619 ========== ==========
LIABILITIES AND EQUITY Mortgage notes payable, including premiums
$551,720 $487,525 Borrowings under credit facilities 92,000 153,000
Unsecured term loan 183,000 183,000 Unsecured senior notes, net of
discounts 1,627,857 1,917,970 Accounts payable and accrued expenses
88,599 79,475 Distributions payable 21,799 29,288 Tenant security
deposits and deferred rents 58,572 58,692 Acquired lease
intangibles, net 37,087 47,626 Deferred Income 47,379 24,271 Other
liabilities 33,997 39,274 ------ ------ Total liabilities 2,742,010
3,020,121 Brandywine Realty Trust's equity: Preferred shares -
Series C 20 20 Preferred shares - Series D 23 23 Common shares
1,286 882 Additional paid-in capital 2,610,421 2,351,428 Deferred
compensation payable in common stock 5,549 6,274 Common shares in
treasury (7,205) (14,121) Common shares held in grantor trust
(5,549) (6,274) Cumulative earnings 501,384 498,716 Accumulated
other comprehensive loss (9,138) (17,005) Cumulative distributions
(1,213,359) (1,150,406) ---------- ---------- Total Brandywine
Realty Trust's equity 1,883,432 1,669,537 --------- ---------
Non-controlling interests 38,308 52,961 ------ ------ Total equity
1,921,740 1,722,498 --------- --------- Total liabilities and
equity $4,663,750 $4,742,619 ========== ========== 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, 2009 2008 2009 2008
---- ---- ---- ---- Revenue Rents $118,715 $120,870 $478,228
$483,212 Tenant reimbursements 22,943 22,170 79,796 78,090
Termination fees 761 338 3,601 4,800 Third party management fees,
labor reimbursement and leasing 3,096 5,162 17,151 20,401 Other
1,120 570 3,443 2,918 ----- --- ----- ----- Total revenue 146,635
149,110 582,219 589,421 Operating Expenses Property operating
expenses 45,302 42,738 168,159 160,770 Real estate taxes 15,171
14,273 58,230 58,649 Third party management expenses 1,657 2,548
7,996 8,965 Depreciation and amortization 52,738 50,416 208,590
202,043 General & administrative expenses 5,330 5,100 20,821
23,002 Provision for impairment of real estate - 10,841 - 10,841 --
------ -- ------ Total operating expenses 120,198 125,916 463,797
464,270 ------- ------- ------- ------- Operating income 26,437
23,194 118,423 125,151 Other income (expense) Interest income 805
1,236 2,500 1,839 Interest expense (33,695) (36,824) (135,740)
(146,646) Deferred financing costs (1,139) (1,652) (5,864) (5,450)
Recognized hedge activity 906 - (916) - Equity in income of real
estate ventures 619 4,609 4,069 8,447 Net (loss) on disposition of
undepreciated real estate - - - (24) Gain (loss) on early
extinguishment of debt (548) 14,999 23,176 18,105 ---- ------
------ ------ Income (loss) from continuing operations (6,615)
5,562 5,648 1,422 Discontinued operations: Income from discontinued
operations 213 2,311 4,903 15,456 Net (loss) gain on disposition of
discontinued operations 2,275 7,096 1,238 28,497 Provision for
impairment - - (3,700) (6,850) -- -- ------ ------ Total
discontinued operations 2,488 9,407 2,441 37,103 ----- ----- -----
------ Net income (loss) (4,127) 14,969 8,088 38,525 Net (loss)
income from discontinued operations attributable to non-controlling
interests - LP units (53) (306) (38) (1,399) Net income (loss)
attributable to non-controlling interests - partners' share of
consolidated real estate ventures 39 (10) (30) (127) Net income
(loss) attributable to non-controlling interests - LP units 184
(116) 5 218 --- ---- -- --- Net (loss) income attributable to non-
controlling interests 170 (431) (63) (1,309) --- ---- --- ------
Net income (loss) attributable to Brandywine Realty Trust (3,957)
14,538 8,025 37,216 Preferred share dividends (1,998) (1,998)
(7,992) (7,992) Amount allocated to unvested restricted
shareholders (96) (143) (279) (763) --- ---- ---- ---- Net income
(loss) available to Common Shareholders $(6,051) $12,397 $(246)
$28,461 ======= ======= ===== ======= PER SHARE DATA Basic income
per Common Share $(0.05) $0.14 $(0.00) $0.32 ====== ===== ======
===== Basic weighted- average shares outstanding 128,588,242
88,025,079 111,898,045 87,574,423 Diluted income per Common Share
$(0.05) $0.14 $(0.00) $0.32 ====== ===== ====== ===== Diluted
weighted- average shares outstanding 128,588,242 88,027,617
113,251,291 87,583,163 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, 2009 2008 2009 2008
---- ---- ---- ---- Reconciliation of Net Income (Loss) to Funds
from Operations: Net income (loss) available to common shareholders
$(6,051) $12,397 $(246) $28,461 Add (deduct): Net income (loss)
attributable to non-controlling interests - LP units (184) 116 (5)
(218) Amount allocated to unvested restricted shareholders 96 143
279 763 Net loss on disposition of undepreciated real estate - - -
24 Net (gain) on sale of unconsolidated real estate venture -
(3,180) - (3,180) Net (loss) income from discontinued operations
attributable to non-controlling interests - LP units 53 306 39
1,399 Net loss (gain) on disposition of discontinued operations
(2,275) (7,096) (1,238) (28,497) Depreciation and amortization:
Real property - continuing operations 40,262 36,756 156,552 146,329
Leasing costs (includes acquired intangibles) - continuing
operations 12,127 13,124 50,303 53,416 Real property - discontinued
operations (3) 757 1,752 9,604 Leasing costs (includes acquired
intangibles) - discontinued operations - 205 403 3,808 Company's
share of unconsolidated real estate ventures 2,110 2,294 7,734
8,671 Partners' share of consolidated real estate ventures (257)
(220) (881) (881) ---- ---- ---- ---- Funds from operations $45,878
$55,601 $214,692 $219,700 Funds from operations allocable to
unvested restricted shareholders (228) (289) (1,180) $(1,124) ----
---- ------ ------- Funds from operations available to common share
and unit holders (FFO) $45,650 $55,312 $213,512 $218,576 =======
======= ======== ======== FFO per share - fully diluted $0.34 $0.61
$1.84 $2.40 ===== ===== ===== ===== FFO, excluding provision for
impairments $45,650 $66,153 $217,212 $236,267 ======= =======
======== ======== FFO per share, excluding provision for
impairments - fully diluted $0.34 $0.73 $1.87 $2.60 ===== =====
===== ===== Weighted-average shares/units outstanding - fully
diluted 132,941,173 90,976,746 116,067,459 90,960,195 Distributions
paid per Common Share $0.10 $0.44 $0.60 $1.76 ===== ===== =====
===== Payout ratio of FFO (Dividends paid per Common Share divided
/ FFO per Share) 29.4% 72.1% 32.6% 73.3% Payout ratio of FFO,
excluding provision for impairments 29.4% 60.3% 32.1% 67.7% CASH
AVAILABLE FOR DISTRIBUTION (CAD): Funds from operations available
to common share and unit holders $45,650 $55,312 $213,512 $218,576
Add (deduct): Rental income from straight-line rent, including
discontinued operations (2,338) (2,813) (9,375) (16,543) Deferred
market rental income, including discontinued operations (1,834)
(1,611) (6,851) (8,104) Company's share of unconsolidated real
estate ventures' straight-line and deferred market rent 155 242 569
526 Partners' share of consolidated real estate ventures'
straight-line and deferred market rent (3) (40) (8) (158) Operating
expense from straight-line rent 370 370 1,473 1,519 Net (loss) on
disposition of undepreciated real estate - - - (24) Provision for
impairment of real estate - 10,841 - 10,841 Provision for
impairment of discontinued operations - - 3,700 6,850 Deferred
compensation costs 1,159 569 4,726 4,408 Fair market value
amortization - mortgage notes payable (353) (684) (1,504) (3,538)
Recognized hedge activity (906) - 916 - Debt discount amortization
- exchangeable notes 725 1,002 3,357 4,284 Revenue maintaining
capital expenditures Building improvements (1,684) (2,326) (5,976)
(4,862) Tenant improvements (6,349) (5,464) (23,305) (19,068) Lease
commissions (1,994) (3,622) (12,649) (12,527) ------ ------ -------
------- Total revenue maintaining capital expenditures (10,027)
(11,412) (41,930) (36,457) Cash available for distribution $32,598
$51,776 $168,585 $182,180 ======= ======= ======== ======== CAD per
share - fully diluted $0.25 $0.57 $1.45 $2.00 ===== ===== =====
===== Weighted-average shares/units outstanding - fully diluted
132,941,173 90,976,746 116,067,459 90,960,195 Distributions per
Common Share $0.10 $0.44 $0.60 $1.76 ===== ===== ===== ===== Payout
ratio of CAD (Dividends paid per Common Share / CAD per Share)
40.0% 77.2% 41.4% 88.0% BRANDYWINE REALTY TRUST SAME STORE
OPERATIONS - 4TH QUARTER (unaudited and in thousands) Of the 245
properties owned by the Company as of December 31, 2009, a total of
233 properties ("Same Store Properties") containing an aggregate of
22.7 million net rentable square feet were owned for the entire
three-month periods ended December 31, 2009 and 2008. Average
occupancy for the Same Store Properties was 88.1% during 2009 and
92.0% during 2008. The following table sets forth revenue and
expense information for the Same Store Properties: Three Months
Ended December 31, 2009 2008 ---- ---- Revenue Rents $112,338
$117,652 Tenant reimbursements 21,762 21,516 Termination fees 761
338 Other 707 405 --- --- 135,568 139,911 Operating expenses
Property operating expenses 44,943 41,050 Real estate taxes 13,901
13,143 ------ ------ Net operating income $76,724 $85,718 =======
======= Net operating income - percentage change over prior year
-10.5% ----- Net operating income, excluding termination fees &
other $75,256 $84,975 ======= ======= Net operating income,
excluding termination fees & other - percentage change over
prior year -11.4% ----- Net operating income $76,724 $85,718
Straight line rents (1,239) (2,347) Above/below market rent
amortization (1,704) (1,537) Non-cash ground rent 370 383 --- ---
Cash - Net operating income $74,151 $82,217 ======= ======= Cash -
Net operating income - percentage change over prior year -9.8% ----
Cash - Net operating income, excluding termination fees & other
$72,683 $81,474 ======= ======= Cash - Net operating income,
excluding termination fees & other - percentage change over
prior year -10.8% ----- The following table is a reconciliation of
Net Income to Same Store net operating income: Three Months Ended
December 31, 2009 2008 ---- ---- Net income $(4,127) $14,969
Add/(deduct): Interest income (805) (1,236) Interest expense 33,695
36,824 Deferred financing costs 1,139 1,652 Recognized hedge
activity (906) - Equity in income of real estate ventures (619)
(4,609) Depreciation and amortization 52,738 50,416 Gain on early
extinguishment of debt 548 (14,999) General & administrative
expenses 5,330 5,100 Provision for impairment of real estate -
10,841 Total discontinued operations (2,488) (9,407) ------ ------
Consolidated net operating income 84,505 89,551 Less: Net operating
income of non same store properties (4,317) (1,424) Less:
Eliminations and non-property specific net operating income (3,464)
(2,409) ------ ------ Same Store net operating income $76,724
$85,718 ======= ======= BRANDYWINE REALTY TRUST SAME STORE
OPERATIONS - YEAR (unaudited and in thousands) Of the 245
properties owned by the Company as of December 31, 2009, a total of
232 properties ("Same Store Properties") containing an aggregate of
22.6 million net rentable square feet were owned for the entire
twelve month periods ended December 31, 2009 and 2008. Average
occupancy for the Same Store Properties was 89.7% during 2009 and
92.7% during 2008. The following table sets forth revenue and
expense information for the Same Store Properties: Twelve Months
Ended December 31, 2009 2008 ---- ---- Revenue Rents $457,355
$470,307 Tenant reimbursements 75,390 73,831 Termination fees 2,385
4,800 Other 2,019 1,831 ----- ----- 537,149 550,769 Operating
expenses Property operating expenses 163,138 159,236 Real estate
taxes 53,621 54,601 ------ ------ Net operating income $320,390
$336,932 ======== ======== Net operating income - percentage change
over prior year -4.9% ---- Net operating income, excluding
termination fees & other $315,986 $330,301 ======== ========
Net operating income, excluding termination fees & other -
percentage change over prior year -4.3% ---- Net operating income
$320,390 $336,932 Straight line rents (5,471) (14,102) Above/below
market rent amortization (6,514) (5,914) Non-cash ground rent 1,473
1,519 ----- ----- Cash - Net operating income $309,878 $318,435
======== ======== Cash - Net operating income - percentage change
over prior year -2.7% ---- Cash - Net operating income, excluding
termination fees & other $305,474 $311,804 ======== ========
Cash - Net operating income, excluding termination fees & other
- percentage change over prior year -2.0% ---- The following table
is a reconciliation of Net Income to Same Store net operating
income: Twelve Months Ended December 31, 2009 2008 ---- ---- Net
Income $8,089 $38,525 Add/(deduct): Interest income (2,500) (1,839)
Interest expense 135,740 146,646 Deferred financing costs 5,864
5,450 Recognized hedge activity 916 - Equity in income of real
estate ventures (4,069) (8,447) Depreciation and amortization
208,590 202,043 Net loss on sale of undepreciated real estate - 24
Gain on early extinguishment of debt (23,176) (18,105) General
& administrative expenses 20,821 23,002 Provision for
impairment of real estate - 10,841 Total discontinued operations
(2,441) (37,103) ------ ------- Consolidated net operating income
347,834 361,037 Less: Net operating income of non same store
properties (13,739) (8,585) Less: Eliminations and non-property
specific net operating income (loss) (13,705) (15,520) -------
------- Same Store net operating income $320,390 $336,932 ========
======== DATASOURCE: Brandywine Realty Trust CONTACT:
Investor/Press Contact, Marge Boccuti, Manager, Investor Relations,
+1-610-832-7702, ; Company Contact, Howard M. Sipzner, EVP &
CFO, +1-610-832-4907, Web Site: http://www.brandywinerealty.com/
Copyright