Brandywine Realty Trust Announces First Quarter 2001 Earnings - FFO Totals $.63 Per Share

Apr 26, 2001, 01:00 ET from Brandywine Realty Trust

    NEWTOWN SQUARE, Pa., April 26 /PRNewswire/ -- Brandywine Realty Trust
 (NYSE:   BDN) announced today that funds from operations (FFO) for the first
 quarter of 2001 increased to $30.0 million from $29.9 million for the first
 quarter of 2000. First quarter 2001 FFO was $.63 per share equal to the first
 quarter of 2000.  FFO per share is calculated on a diluted basis which assumes
 full conversion of the convertible preferred shares.  FFO on a basic per share
 basis (excluding conversion of convertible preferred shares) increased to $.67
 per share for the first quarter of 2001 from $.66 per share for the first
 quarter of 2000.
     "We are pleased with our first quarter results.  Our tenant retention rate
 for the quarter exceeded our target and reflects the high quality of our asset
 base.  Major priorities remain our tenant service program, early renewal
 initiatives and continuing to self-fund our development program," commented
 Gerard H. Sweeney, Brandywine's President and CEO.  "In addition, our pipeline
 under development is $105 million and all 2001 deliveries are 100% pre-leased.
 Our total pipeline pre-leasing is 45% with an average development yield of
 13.2%."
 
     Brandywine Realty Trust Summary for First Quarter of 2001
     *  FFO of $30.0 million, $0.63 per share
 
     *  Payout ratios of 64.9% for FFO and 72.6% for CAD
 
     *  Same Store growth of 4.8% on cash basis and 4.0% on GAAP basis (based
        on 238 properties or 96% of the portfolio)
 
     *  Quarterly net effective rental increases (cash basis):  New leases -
        10.3%, Renewals - 9.7%
 
     *  Quarterly net effective rental increases (GAAP basis):  New leases -
        15.9%, Renewals - 11.1%
 
     *  Quarterly retention rate of 80.3%
 
     *  Portfolio occupancy rate of 95.5%
 
     Property Development / Land Inventory
     As of March 31, 2001, the Company had seven office properties under
 development or redevelopment, totaling approximately 598,000 square feet.  The
 total projected cost of these developments is $105 million.  The Company's
 development pipeline is 45% pre-leased and is expected to generate a
 stabilized yield of 13.2%. These projects are scheduled for completion between
 April 2001 and June 2002.
     The Company owns 507 acres of undeveloped land directly and holds options
 to purchase or deposits on 61 acres.  In total, this undeveloped land can
 accommodate approximately 4.4 million square feet of office and industrial
 development.
 
     Consolidated Financial Results
     For the quarter ended March 31, 2001, the Company reported net income
 before net gain on sales and minority interest of $11.2 million compared to
 $12.8 million for the first quarter of 2000.  Earnings before interest, taxes,
 depreciation and amortization (EBITDA) for the quarter was $48.0 million as
 compared to $47.6 million for the same quarter of 2000.
 
     Financing and Capital Transactions
     On April 2, 2001, the Company closed a $66 million loan with Metropolitan
 Life Insurance Company.  The loan is secured by nine properties, has a 12 year
 term and bears interest at a fixed rate of 7.25 percent.  The loan requires
 monthly payments of principal and interest amortized over a 25 year period
 after a three year period of interest only.
     Proceeds of this loan and borrowings from the Company's line-of-credit
 were used to repay $81.4 million of secured variable-rate debt scheduled to
 mature during 2001 and 2002.  As a result of this transaction, the Company
 will have approximately $37 million of remaining debt maturing in 2001 and
 2002.
 
     Leasing Activity
     Leases for approximately 1 million square feet expired or terminated
 during the first quarter of 2001.  Leases were renewed for 807,000 square feet
 and new leases were signed for 188,000 square feet.  Net effective rental rate
 increases were 9.7% on renewals and 10.3% on new leases on a cash basis and
 11.1% on renewals and 15.9% on new leases on a GAAP basis. The total property
 portfolio was 95.5% leased as of March 31, 2001.  Same store growth
 (238 properties, including 15.9 million square feet) was 4.8% on a cash basis
 and 4.0% on a GAAP basis for the first quarter of 2001.
 
     Distributions
     On March 21, 2001, the Board of Trustees declared a regular quarterly
 dividend distribution of $0.41 per share, paid on April 16, 2001 to
 shareholders of record as of April 5, 2001.  Based on first quarter 2001
 results, Brandywine achieved a payout ratio of 64.9% of FFO and 72.6% of CAD.
 
     Note:  Certain 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 the actual results,
 performance, achievements or transactions of the Company and its affiliates or
 industry results 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:  the Company's ability to lease vacant space and to
 renew or relet space under expiring leases at expected levels, the potential
 loss of major tenants, interest rate levels, the availability of debt and
 equity financing, competition with other real estate companies for tenants and
 acquisitions, risks of real estate acquisitions and developments, dependence
 upon certain geographic markets, and general economic, business and real
 estate conditions.  Additional information on factors which could impact the
 Company and the forward-looking statements contained herein are included in
 the Company's filings with the Securities and Exchange Commission.
 
                              BRANDYWINE REALTY TRUST
                            CONSOLIDATED BALANCE SHEETS
                             (unaudited, in thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                                  (restated)
     ASSETS
     Real estate investments:
       Operating properties                       $ 1,776,188    $ 1,754,895
       Accumulated depreciation                      (195,827)      (179,558)
                                                    1,580,361      1,575,337
       Land held for development                       51,166         44,693
       Construction-in-progress                        58,444         54,311
                                                    1,689,971      1,674,341
 
     Cash and cash equivalents                          5,451         16,060
     Escrowed cash                                     16,334         14,788
     Accounts receivable, net                           9,067          8,065
     Accrued rent receivable                           22,624         21,221
     Due from affiliates                                4,846          4,591
     Investment in joint ventures, at equity           32,656         33,566
     Deferred costs, net                               20,278         19,828
     Other assets                                      26,848         34,924
 
         Total assets                             $ 1,828,075    $ 1,827,384
 
     LIABILITIES AND BENEFICIARIES' EQUITY
 
     Mortgage notes payable                         $ 526,149      $ 527,877
     Borrowings under Credit Facility                 353,325        338,325
     Accounts payable and accrued expenses             21,290         22,094
     Distributions payable                             20,479         20,428
     Tenant security deposits and deferred rents       18,321         17,232
         Total liabilities                            939,564        925,956
 
     Minority interest                                144,438        144,923
 
     Beneficiaries' equity:
       Preferred Shares:
         7.25% Series A Preferred Shares,
           $0.01 par value; shares
           authorized-10,000,000; issued and
           outstanding-750,000 in 2000 and 1999             8              8
         8.75% Series B Preferred Shares,
           $0.01 par value; shares
           authorized-10,000,000; issued and
           outstanding-4,375,000 in 2000 and 1999          44             44
       Common Shares of beneficial interest,
         $0.01 par value; shares
         authorized-100,000,000; issued and
         outstanding-35,746,660 in 2000 and
         35,681,314 in 2000                               357            357
       Additional paid-in capital                     852,673        851,875
       Share warrants                                     908            908
       Cumulative earnings                            140,027        131,256
       Accumulated other comprehensive loss            (5,831)        (1,731)
       Cumulative distributions                      (244,113)      (226,212)
         Total beneficiaries' equity                  744,073        756,505
 
       Total liabilities and
         beneficiaries' equity                    $ 1,828,075    $ 1,827,384
 
 
                              BRANDYWINE REALTY TRUST
                              SELECTED FINANCIAL DATA
                  (unaudited, in thousands, except per share data)
 
                                                      Quarter Ended March 31,
                                                         2001           2000
                                                                   (restated)
     Revenue
       Rents                                         $ 63,184       $ 60,531
       Tenant reimbursements                            9,528          8,956
       Other                                            2,301          2,678
         Total revenue                                 75,013         72,165
 
     Operating Expenses
       Property operating expenses                     20,101         18,102
       Real estate taxes                                6,731          6,284
       Interest                                        15,998         15,963
       Depreciation and amortization                   19,339         17,258
       Administrative expenses                          3,159          2,430
         Total operating expenses                      65,328         60,037
 
     Income before equity in income of
       real estate ventures, net gain on
       sales and minority interest                      9,685         12,128
     Equity in income of real estate ventures           1,466            643
     Income before net gain on sales and
       minority interest                               11,151         12,771
     Net gain on sales of interests in real estate        182             --
     Minority interest                                 (2,193)        (2,181)
     Net income                                         9,140         10,590
 
     Income allocated to Preferred Shares              (2,977)        (2,977)
     Income allocated to Common Shares                $ 6,163        $ 7,613
 
     Funds From Operations (FFO):
     Income before gains on sales and
       minority interest                             $ 11,151       $ 12,771
 
     Add:
       Depreciation:
         Real property                                 17,452         15,947
         Real estate ventures                           1,053            537
       Amortization of leasing costs                    1,046            616
       Gain on sale of land interests                      41             --
 
     Less:
       Gain included in equity in income of
         real estate ventures                            (785)            --
     FFO                                             $ 29,958       $ 29,871
 
     Number of weighted-average Common Shares      47,396,137     47,781,584
 
     FFO per weighted-average Common Share             $ 0.63         $ 0.63
 
 
     First Quarter Earnings Call and Supplemental Information Package
     Brandywine President and CEO, Gerard H. Sweeney, will be hosting a
 conference call on Friday, April 27, 2001 at 1:00 p.m. EDT. Call 800-454-2219.
 After the conference, a taped replay of the call can be accessed 24 hours a
 day through Friday, May 11, 2001 by calling 800-615-3210 -- access code
 5147443.
     The Company has prepared a Supplemental Information package that includes
 financial results and operational statistics to support the announcement of
 third quarter earnings. The Supplemental Information package is available
 through the Company's website @ http://www.brandywinerealty.com.  The
 Supplemental Information Package will be found in both the "About The Company"
 section and the "Investor Relations -- Annual Reports" section of the web
 page.
     Brandywine Realty Trust, with headquarters in Newtown Square and regional
 offices in King of Prussia, PA; Mount Laurel, NJ; and Richmond, VA, is one of
 the Mid-Atlantic Region's largest full-service real estate companies that owns
 or manages 319 commercial and industrial properties containing more than
 21.7 million rentable square feet.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X28662557
 
 

SOURCE Brandywine Realty Trust
    NEWTOWN SQUARE, Pa., April 26 /PRNewswire/ -- Brandywine Realty Trust
 (NYSE:   BDN) announced today that funds from operations (FFO) for the first
 quarter of 2001 increased to $30.0 million from $29.9 million for the first
 quarter of 2000. First quarter 2001 FFO was $.63 per share equal to the first
 quarter of 2000.  FFO per share is calculated on a diluted basis which assumes
 full conversion of the convertible preferred shares.  FFO on a basic per share
 basis (excluding conversion of convertible preferred shares) increased to $.67
 per share for the first quarter of 2001 from $.66 per share for the first
 quarter of 2000.
     "We are pleased with our first quarter results.  Our tenant retention rate
 for the quarter exceeded our target and reflects the high quality of our asset
 base.  Major priorities remain our tenant service program, early renewal
 initiatives and continuing to self-fund our development program," commented
 Gerard H. Sweeney, Brandywine's President and CEO.  "In addition, our pipeline
 under development is $105 million and all 2001 deliveries are 100% pre-leased.
 Our total pipeline pre-leasing is 45% with an average development yield of
 13.2%."
 
     Brandywine Realty Trust Summary for First Quarter of 2001
     *  FFO of $30.0 million, $0.63 per share
 
     *  Payout ratios of 64.9% for FFO and 72.6% for CAD
 
     *  Same Store growth of 4.8% on cash basis and 4.0% on GAAP basis (based
        on 238 properties or 96% of the portfolio)
 
     *  Quarterly net effective rental increases (cash basis):  New leases -
        10.3%, Renewals - 9.7%
 
     *  Quarterly net effective rental increases (GAAP basis):  New leases -
        15.9%, Renewals - 11.1%
 
     *  Quarterly retention rate of 80.3%
 
     *  Portfolio occupancy rate of 95.5%
 
     Property Development / Land Inventory
     As of March 31, 2001, the Company had seven office properties under
 development or redevelopment, totaling approximately 598,000 square feet.  The
 total projected cost of these developments is $105 million.  The Company's
 development pipeline is 45% pre-leased and is expected to generate a
 stabilized yield of 13.2%. These projects are scheduled for completion between
 April 2001 and June 2002.
     The Company owns 507 acres of undeveloped land directly and holds options
 to purchase or deposits on 61 acres.  In total, this undeveloped land can
 accommodate approximately 4.4 million square feet of office and industrial
 development.
 
     Consolidated Financial Results
     For the quarter ended March 31, 2001, the Company reported net income
 before net gain on sales and minority interest of $11.2 million compared to
 $12.8 million for the first quarter of 2000.  Earnings before interest, taxes,
 depreciation and amortization (EBITDA) for the quarter was $48.0 million as
 compared to $47.6 million for the same quarter of 2000.
 
     Financing and Capital Transactions
     On April 2, 2001, the Company closed a $66 million loan with Metropolitan
 Life Insurance Company.  The loan is secured by nine properties, has a 12 year
 term and bears interest at a fixed rate of 7.25 percent.  The loan requires
 monthly payments of principal and interest amortized over a 25 year period
 after a three year period of interest only.
     Proceeds of this loan and borrowings from the Company's line-of-credit
 were used to repay $81.4 million of secured variable-rate debt scheduled to
 mature during 2001 and 2002.  As a result of this transaction, the Company
 will have approximately $37 million of remaining debt maturing in 2001 and
 2002.
 
     Leasing Activity
     Leases for approximately 1 million square feet expired or terminated
 during the first quarter of 2001.  Leases were renewed for 807,000 square feet
 and new leases were signed for 188,000 square feet.  Net effective rental rate
 increases were 9.7% on renewals and 10.3% on new leases on a cash basis and
 11.1% on renewals and 15.9% on new leases on a GAAP basis. The total property
 portfolio was 95.5% leased as of March 31, 2001.  Same store growth
 (238 properties, including 15.9 million square feet) was 4.8% on a cash basis
 and 4.0% on a GAAP basis for the first quarter of 2001.
 
     Distributions
     On March 21, 2001, the Board of Trustees declared a regular quarterly
 dividend distribution of $0.41 per share, paid on April 16, 2001 to
 shareholders of record as of April 5, 2001.  Based on first quarter 2001
 results, Brandywine achieved a payout ratio of 64.9% of FFO and 72.6% of CAD.
 
     Note:  Certain 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 the actual results,
 performance, achievements or transactions of the Company and its affiliates or
 industry results 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:  the Company's ability to lease vacant space and to
 renew or relet space under expiring leases at expected levels, the potential
 loss of major tenants, interest rate levels, the availability of debt and
 equity financing, competition with other real estate companies for tenants and
 acquisitions, risks of real estate acquisitions and developments, dependence
 upon certain geographic markets, and general economic, business and real
 estate conditions.  Additional information on factors which could impact the
 Company and the forward-looking statements contained herein are included in
 the Company's filings with the Securities and Exchange Commission.
 
                              BRANDYWINE REALTY TRUST
                            CONSOLIDATED BALANCE SHEETS
                             (unaudited, in thousands)
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                                  (restated)
     ASSETS
     Real estate investments:
       Operating properties                       $ 1,776,188    $ 1,754,895
       Accumulated depreciation                      (195,827)      (179,558)
                                                    1,580,361      1,575,337
       Land held for development                       51,166         44,693
       Construction-in-progress                        58,444         54,311
                                                    1,689,971      1,674,341
 
     Cash and cash equivalents                          5,451         16,060
     Escrowed cash                                     16,334         14,788
     Accounts receivable, net                           9,067          8,065
     Accrued rent receivable                           22,624         21,221
     Due from affiliates                                4,846          4,591
     Investment in joint ventures, at equity           32,656         33,566
     Deferred costs, net                               20,278         19,828
     Other assets                                      26,848         34,924
 
         Total assets                             $ 1,828,075    $ 1,827,384
 
     LIABILITIES AND BENEFICIARIES' EQUITY
 
     Mortgage notes payable                         $ 526,149      $ 527,877
     Borrowings under Credit Facility                 353,325        338,325
     Accounts payable and accrued expenses             21,290         22,094
     Distributions payable                             20,479         20,428
     Tenant security deposits and deferred rents       18,321         17,232
         Total liabilities                            939,564        925,956
 
     Minority interest                                144,438        144,923
 
     Beneficiaries' equity:
       Preferred Shares:
         7.25% Series A Preferred Shares,
           $0.01 par value; shares
           authorized-10,000,000; issued and
           outstanding-750,000 in 2000 and 1999             8              8
         8.75% Series B Preferred Shares,
           $0.01 par value; shares
           authorized-10,000,000; issued and
           outstanding-4,375,000 in 2000 and 1999          44             44
       Common Shares of beneficial interest,
         $0.01 par value; shares
         authorized-100,000,000; issued and
         outstanding-35,746,660 in 2000 and
         35,681,314 in 2000                               357            357
       Additional paid-in capital                     852,673        851,875
       Share warrants                                     908            908
       Cumulative earnings                            140,027        131,256
       Accumulated other comprehensive loss            (5,831)        (1,731)
       Cumulative distributions                      (244,113)      (226,212)
         Total beneficiaries' equity                  744,073        756,505
 
       Total liabilities and
         beneficiaries' equity                    $ 1,828,075    $ 1,827,384
 
 
                              BRANDYWINE REALTY TRUST
                              SELECTED FINANCIAL DATA
                  (unaudited, in thousands, except per share data)
 
                                                      Quarter Ended March 31,
                                                         2001           2000
                                                                   (restated)
     Revenue
       Rents                                         $ 63,184       $ 60,531
       Tenant reimbursements                            9,528          8,956
       Other                                            2,301          2,678
         Total revenue                                 75,013         72,165
 
     Operating Expenses
       Property operating expenses                     20,101         18,102
       Real estate taxes                                6,731          6,284
       Interest                                        15,998         15,963
       Depreciation and amortization                   19,339         17,258
       Administrative expenses                          3,159          2,430
         Total operating expenses                      65,328         60,037
 
     Income before equity in income of
       real estate ventures, net gain on
       sales and minority interest                      9,685         12,128
     Equity in income of real estate ventures           1,466            643
     Income before net gain on sales and
       minority interest                               11,151         12,771
     Net gain on sales of interests in real estate        182             --
     Minority interest                                 (2,193)        (2,181)
     Net income                                         9,140         10,590
 
     Income allocated to Preferred Shares              (2,977)        (2,977)
     Income allocated to Common Shares                $ 6,163        $ 7,613
 
     Funds From Operations (FFO):
     Income before gains on sales and
       minority interest                             $ 11,151       $ 12,771
 
     Add:
       Depreciation:
         Real property                                 17,452         15,947
         Real estate ventures                           1,053            537
       Amortization of leasing costs                    1,046            616
       Gain on sale of land interests                      41             --
 
     Less:
       Gain included in equity in income of
         real estate ventures                            (785)            --
     FFO                                             $ 29,958       $ 29,871
 
     Number of weighted-average Common Shares      47,396,137     47,781,584
 
     FFO per weighted-average Common Share             $ 0.63         $ 0.63
 
 
     First Quarter Earnings Call and Supplemental Information Package
     Brandywine President and CEO, Gerard H. Sweeney, will be hosting a
 conference call on Friday, April 27, 2001 at 1:00 p.m. EDT. Call 800-454-2219.
 After the conference, a taped replay of the call can be accessed 24 hours a
 day through Friday, May 11, 2001 by calling 800-615-3210 -- access code
 5147443.
     The Company has prepared a Supplemental Information package that includes
 financial results and operational statistics to support the announcement of
 third quarter earnings. The Supplemental Information package is available
 through the Company's website @ http://www.brandywinerealty.com.  The
 Supplemental Information Package will be found in both the "About The Company"
 section and the "Investor Relations -- Annual Reports" section of the web
 page.
     Brandywine Realty Trust, with headquarters in Newtown Square and regional
 offices in King of Prussia, PA; Mount Laurel, NJ; and Richmond, VA, is one of
 the Mid-Atlantic Region's largest full-service real estate companies that owns
 or manages 319 commercial and industrial properties containing more than
 21.7 million rentable square feet.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X28662557
 
 SOURCE  Brandywine Realty Trust