Brandywine Realty Trust Announces First Quarter 2006 Earnings.PLYMOUTH Plymouth, city, England Plymouth, city (1991 pop. 238,583) and district, Devon, SW England, on Plymouth Sound. The three towns that Plymouth has comprised since 1914 are Plymouth, Stonehouse, and Devonport. MEETING, Pa. -- Brandywine Realty Trust Brandywine Realty Trust (NYSE: BDN) is a real estate development trust (REIT) in the United States that buys, sells, leases and manages approximately 225 commercial properties, no more than 25 industrial parcels of land, mixed-use property, and over 200 acres of undeveloped (NYSE NYSE See: New York Stock Exchange :BDN BDN Borland Developer Network BDN Bangor Daily News (Maine, USA) BDN Business Development Network BDN Bell Data Network BDN Bulk Data Network BDN Busy Doing Nothing (band) BDN Buffered Delta Network ) announced today that diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. (FFO FFO See: Funds from operations ) was $55.2 million or $0.59 per share for the first quarter of 2006 compared to $36.3 million or $0.63 per share for the first quarter of 2005. FFO represents a non-generally accepted accounting principle (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ) financial measure. A table reconciling FFO to net income, the GAAP measure that the Company believes to be most directly comparable, is within the consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge included in this release. Diluted earnings (loss) per share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) was $(0.05) for the first quarter of 2006, a decrease of $0.18 per share as compared to $0.13 for the first quarter of 2005. Net income (loss) was $(2.6) million for the first quarter, a decrease of $12.0 million, as compared to $9.4 million for the first quarter of 2005. A significant contribution to the change in net income in the first quarter of 2006 as compared to the first quarter of 2005 is the $31.9 million increase in depreciation and amortization expense. This increase is primarily the result of the depreciation/amortization of the tangible and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. acquired in connection with the January January: see month. 5, 2006 Prentiss transaction. Brandywine Bran·dy·wine A creek of southeast Pennsylvania and northern Delaware. It was the site of a major defeat of the Continental Army on September 11, 1777, thus allowing British troops to enter Philadelphia on September 27. President and Chief Executive Officer, Gerard Gerard is a male forename of Germanic origin, variations of which exist in many Germanic and Romance languages. The name derives from Old Germanic 'ger' ('spear') and 'hard' ('hard/strong/brave'). Its meaning is 'strong/brave with the spear'. H. Sweeney Sweeney in poems by T. S. Eliot, symbolizes the sensual, brutal, and materialistic 20th-century man. [Br. Poetry, Benét, 978] See : Virility , commented, "We are pleased to report our first quarterly results following the closing of the Prentiss transaction. Integration efforts continue to progress according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. our plan. Our combined operating team operating team Surgery The participants–surgeons, nurses, etc–in a sterile surgical procedure performed under general–less commonly, local anesthesia is off to a great start and we are pleased with the performance of our combined portfolio in the first quarter. Net positive absorption and high tenant retention are strong indications that we have focused on both integration and our business plan at the same time." Brandywine Realty Trust Summary Portfolio Performance --FFO payout ratio Payout Ratio The percentage of earnings paid out in dividends. It is calculated by dividing dividends per share by earnings per share. Notes: The payout ratio indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend. was 74.7% for the quarter --Quarterly rental rate growth on renewals increased 0.6% on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis --Quarterly retention rate was 78.3% --Portfolio was 90.0% occupied and 91.7% leased as of March 31, 2006 --Leases expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. or were terminated ter·mi·nate v. ter·mi·nat·ed, ter·mi·nat·ing, ter·mi·nates v.tr. 1. To bring to an end or halt: for approximately 1,136,000 square feet during the quarter --Leases were renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. for approximately 889,000 square feet during the quarter --New leases were signed for approximately 349,000 square feet during the quarter Distributions On March 15, 2006, the Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a regular quarterly dividend distribution of $0.42 per common share that was paid April 17, 2006 to shareholders of record as of April 5, 2006. This was in addition to the Company's previously announced pro-rata Pro-rata Used to describe a proportionate allocation. Notes: For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share they own. See also: Dividend dividend for the period January 1 to January 4, 2006 of $0.02 per common share that was paid on January 17, 2006 to shareholders of record as of January 4, 2006 in connection with the Company's merger with Prentiss Properties Trust. The Company's total first quarter dividend amount of $0.44 per common share is consistent with the amount of previously paid quarterly dividends in 2005. The Company also declared its dividend for the first quarter of $0.46875 per 7.50% Series C Cumulative Redeemable Redeemable Eligible for redemption under the terms of an indenture. Preferred Share and $0.460938 per 7.375% Series D Cumulative Redeemable Preferred Share that was paid on April 17, 2006 to holders of record of the Series C and Series D Preferred Shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. as of March 30, 2006. Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Program The Company announced that its Board of Trustees has approved an increase in the Company's share repurchase program. As increased, the Company may purchase up to 3,500,000 common shares. Repurchases may be made from time to time in the open market or in privately negotiated transactions, subject to market conditions and in compliance with legal requirements. The Board authorization The right or permission to use a system resource; the process of granting access. See access control. does not contain any time limitation and does not obligate obligate /ob·li·gate/ (ob´li-gat) pertaining to or characterized by the ability to survive only in a particular environment or to assume only a particular role, as an obligate anaerobe. the Company to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. any shares. The Company may discontinue dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the program at any time. "As we assessed our capital deployment opportunities, we concluded that it was prudent to have the flexibility to invest a portion of the proceeds from our asset disposition strategy into a share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program. The Board's authorization to increase our existing program to a total of 3.5 million shares, along with our development and acquisition programs, will provide us with viable capital deployment alternatives. We maintain our commitment to our fixed income investors and will prudently pru·dent adj. 1. Wise in handling practical matters; exercising good judgment or common sense. 2. Careful in regard to one's own interests; provident. 3. Careful about one's conduct; circumspect. allocate To reserve a resource such as memory or disk. See memory allocation. capital to ensure our improving credit profile," Mr. Sweeney Mr. Sweeney (played by Don Creech) is Ned and Moze's evil science teacher in Ned's Declassified School Survival Guide, whose character has been toned down a bit since season one. He treats his students rather harshly, and many consider him insane. said. 2006 Financial Outlook The Company's 2006 financial outlook continues to be predicated upon the following key and variable assumptions: --The historic Brandywine same-store portfolio to achieve the following percentage changes from 2005 results:
-- GAAP rents and reimbursements (not including termination
fees) to increase 1.25% to 1.75%
-- Net operating income to decline 0.5% to 2.0%
-- Average occupancy to range from unchanged to an increase
of 1.0%
The Company's expected contribution from the Prentiss acquisition is a result of the following: --Property level average occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy to grow 2.5% to 3.0% from year end 2005 levels and cash rents to decline 3.0% to 7.0% from their previous levels --A stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. addition to our G&A of $10 million, inclusive of inclusive of prep. Taking into consideration or account; including. synergies in connection with the merger In addition to these operating expectations, the Company's financial forecast includes the following key and variable development and acquisition/disposition assumptions: --Completion of the previously announced development and re-development projects --Net dispositions of approximately $150-200 million during the balance of 2006 These estimates may be positively or negatively impacted primarily by the timing and terms of property leases, and actual operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and interest rates as compared to our forecast. Based on these key assumptions, we affirm our guidance from our February February: see month. 23, 2006 press release and expect our full year 2006 EPS to be $(0.05) to $0.03 and FFO per share to be $2.50 to $2.58. We are introducing second quarter 2006 guidance and expect FFO per share to be $0.58 to $0.60 and EPS to be $(0.06) to $(0.04). These estimates may be positively or negatively impacted primarily by the timing and terms of property leases, and actual operating expenses and interest rates as compared to our forecast. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Estimates of future earnings per share and FFO per share and certain other statements in this release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 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 ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. leases at expected levels, competition with other real estate companies for tenants, the potential loss or bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most of major tenants, interest rate levels, the availability of debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , competition for real estate acquisitions and risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor , unanticipated operating and capital costs, the Company's 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 the Company's tenants compete. 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, including the Company's Annual Report for the year ended December December: see month. 31, 2005. The Company assumes no obligation to update or supplement forward-looking statements that become untrue un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events. Non-GAAP Supplemental Financial Measures Funds from Operations (FFO) FFO is a widely recognized measure of REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). performance. Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors. The Company computes FFO in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with standards established by the National Association of Real Estate Investment Trusts (NAREIT NAREIT National Association of Real Estate Investment Trusts ), which may not be comparable to FFO reported by other REITs that do not compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than the Company. NAREIT defines FFO as net income (loss) before minority interest of unit holders (preferred and common) and excluding gains (losses) on sales of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. operating property and extraordinary items (computed in accordance with GAAP); plus real estate related depreciation and amortization (excluding amortization of deferred financing costs), and after adjustment for unconsolidated joint ventures. The GAAP measure that the Company believes to be most directly comparable to FFO, net income, includes depreciation and amortization expenses, gains or losses on property sales and minority interest. In computing computing - computer FFO, the Company eliminates substantially all of these items because, in the Company's view, they are not indicative of the results from the Company's property operations. To facilitate a clear understanding of the Company's 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 generated from operating activities 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 the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions to shareholders. Cash Available for Distribution (CAD CAD: see computer-aided design. (Computer-Aided Design) Using computers to design products. CAD systems are high-speed workstations or desktop computers with CAD software. ) Cash available for distribution, CAD, is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies. First Quarter Earnings Call and Supplemental Information Package Brandywine President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Gerard H. Sweeney, will be hosting a conference call on Wednesday Wednesday: see week. , May 3, 2006 at 10:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The conference call can be accessed by calling 1-888-889-5602. After the conference, a taped replay of the call can be accessed 24 hours a day through Wednesday, May 17, 2006 by calling 1-877-519-4471 -- access code 7234137. In addition, the conference call can be accessed via a web cast located on the Company's website at www.brandywinerealty.com. The Company has prepared a Supplemental Information package that includes financial results and operational statistics to support the announcement of first quarter earnings. The Supplemental Information package is available through the Company's website at www.brandywinerealty.com. The Supplemental Information package can be found in the "Investor Relations Investor relations The process by which the corporation communicates with its investors. - Financial Reports" section of the web page. About Brandywine Realty Trust Brandywine Realty Trust (NYSE: BDN), with headquarters in Plymouth Meeting, Pa., is one of the largest full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. , completely integrated real estate companies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Organized as a real estate investment trust (REIT), Brandywine owns, manages or has ownership interest in office and industrial properties aggregating 46 million square feet. For more information, visit Brandywine's website at www.brandywinerealty.com. 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 and terms of debt and equity financing, competition with other real estate companies for tenants and acquisitions, risks of real estate acquisitions, dispositions and developments, including cost overruns and construction delays, unanticipated operating costs operating costs npl → gastos mpl operacionales and the effects of general and local economic and real estate conditions. Additional information or 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. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
BRANDYWINE REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
March 31, December 31,
2006 2005
------------ ------------
ASSETS
Real estate investments:
Operating properties $ 4,700,378 $ 2,560,061
Accumulated depreciation (436,481) (390,333)
------------ ------------
4,263,897 2,169,728
Construction-in-progress 296,049 273,240
Land held for development 142,263 98,518
------------ ------------
4,702,209 2,541,486
Cash and cash equivalents 36,301 7,174
Escrowed cash 20,345 18,497
Accounts receivable, net 24,786 12,874
Accrued rent receivable, net 54,129 47,034
Investment in marketable securities 189,775 -
Assets held for sale 22,735 -
Investment in real estate ventures 79,055 13,331
Deferred costs, net 44,873 37,602
Intangible assets, net 364,606 78,097
Other assets 62,064 49,649
------------ ------------
Total assets $ 5,600,878 $ 2,805,744
============ ============
LIABILITIES AND BENEFICIARIES' EQUITY
Mortgage notes payable $ 915,454 $ 494,777
Borrowings under credit facilities 100,000 90,000
Unsecured senior notes, net of discounts 2,047,584 936,607
Accounts payable and accrued expenses 86,358 52,635
Distributions payable 42,091 28,880
Tenant security deposits and deferred rents 38,346 20,953
Acquired lease intangibles, net 108,075 34,704
Other liabilities 16,593 4,466
Mortgage note payable and other liabilities
held for sale 14,125 -
------------ ------------
Total liabilities 3,368,626 1,663,022
Minority interest 140,388 37,859
Beneficiaries' equity:
Preferred shares - Series C 20 20
Preferred shares - Series D 23 23
Common shares 909 562
Additional paid-in capital 2,395,531 1,369,913
Cumulative earnings 410,639 413,281
Accumulated other comprehensive (income)
loss 846 (3,169)
Cumulative distributions (716,104) (675,767)
------------ ------------
Total beneficiaries' equity 2,091,864 1,104,863
------------ ------------
2,232,252 1,142,722
------------ ------------
Total liabilities and beneficiaries'
equity $ 5,600,878 $ 2,805,744
============ ============
BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share data)
Three Months Ended
-------------------------
March 31, March 31,
2006 2005
------------ ------------
Revenue
Rents $ 143,407 $ 81,228
Tenant reimbursements 17,970 12,082
Other 4,387 6,016
------------ ------------
Total revenue 165,764 99,326
Operating Expenses
Property operating expenses 48,982 29,879
Real estate taxes 16,850 9,657
Depreciation and amortization 60,334 28,435
Administrative expenses 8,490 4,752
------------ ------------
Total operating expenses 134,656 72,723
------------ ------------
Operating income 31,108 26,603
Other income (expense)
Interest income 2,650 378
Interest expense (40,967) (17,797)
Equity in income of real estate ventures 965 558
------------ ------------
Income (loss) before minority interest (6,244) 9,742
Minority interest - partners' share of
consolidated real estate ventures 286 -
Minority interest attributable to continuing
operations - LP units 362 (327)
------------ ------------
Income (loss) from continuing operations (5,596) 9,415
Discontinued operations:
Income from discontinued operations 3,283 -
Minority interest - partners' share of
consolidated real estate venture (187)
Minority interest attributable to
discontinued operations - LP units (142) -
------------ ------------
2,954 -
------------ ------------
Net income (loss) (2,642) 9,415
Income allocated to Preferred Shares (1,998) (1,998)
------------ ------------
Income (loss) allocated to Common Shares $ (4,640) $ 7,417
============ ============
PER SHARE DATA
Basic income (loss) per Common Share $ (0.05) $ 0.13
============ ============
Basic weighted-average shares outstanding 89,299,967 55,441,773
Diluted income (loss) per Common Share $ (0.05) $ 0.13
============ ============
Diluted weighted-average shares outstanding 89,742,981 55,682,792
BRANDYWINE REALTY TRUST
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
(unaudited, in thousands, except share and per share data)
Three Months Ended
-------------------------
3/31/06 3/31/05
------------ ------------
Reconciliation of Net Income to Funds from
Operations (FFO):
Net income (loss) $ (2,642) $ 9,415
Add (deduct):
Minority interest attributable to
continuing operations - LP units (362) 327
Minority interest attributable to
discontinued operations - LP units 142 -
------------ ------------
Income (loss) before net gains on sale of
interests in real estate and minority
interest (2,862) 9,742
Add:
Depreciation:
Real property 32,002 20,924
Company's share of unconsolidated real
estate ventures 1,515 354
Partners' share of consolidated real
estate ventures (1,657) -
Amortization of leasing costs (includes
acquired intangibles) 28,204 7,232
Perpetual Preferred Share distributions (1,998) (1,998)
------------ ------------
Funds from operations (FFO) $ 55,204 $ 36,254
============ ============
FFO per share - fully diluted $ 0.59 $ 0.63
============ ============
Weighted-average shares/units outstanding -
fully diluted 93,761,849 57,743,873
EPS - diluted $ (0.05) $ 0.13
============ ============
Weighted-average shares outstanding - fully
diluted 89,742,981 55,682,792
Dividend per Common Share $ 0.44 $ 0.44
============ ============
Payout ratio of FFO (Dividend per Common
Share divided by FFO per Share) 74.7% 70.1%
CASH AVAILABLE FOR DISTRIBUTION (CAD):
FFO $ 55,204 $ 36,254
Add (deduct):
Rental income from straight-line rents (7,696) (3,275)
Deferred market rental income (1,939) (505)
Amortization:
Deferred financing costs 479 481
Deferred compensation costs 776 692
Second generation capital expenditures (1):
Building improvements (2) (1,285) -
Tenant improvements (7,768) (6,637)
Lease commissions (980) (916)
------------ ------------
Cash available for distribution $ 36,791 $ 26,094
============ ============
Weighted-average shares/units outstanding -
fully diluted 93,761,849 57,743,873
Dividend per Common Share $ 0.44 $ 0.44
============ ============
Cash flows from:
Operating activities $ 52,810 $ 26,621
Investing activities (862,066) (48,873)
Financing activities 838,383 22,379
(1) Represents expenditures incurred during the period (regardless if
lease commencement is after quarter end). Excludes first
generation costs, which consist of capital expenditures, tenant
improvements and leasing commissions associated with development
and purchase price adjustments relating to acquisitions (including
seller escrows, purchase price reduction or costs anticipated to
initially lease-up acquired properties).
(2) Building improvements and tenant improvements are combined for all
periods prior to 3/31/06.
BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - QUARTER
(unaudited and in thousands)
Of the 319 Properties owned by the Company as of March 31, 2006, a
total of 241 Properties ("Same Store Properties") containing an
aggregate of 18.2 million net rentable square feet were owned for the
entire three-month periods ended March 31, 2006 and 2005. Average
occupancy for the Same Store Properties was 90.9% during 2006 and
91.3% during 2005. The following table sets forth revenue and expense
information for the Same Store Properties:
Quarter Ended
March 31,
--------------------- Dollar Percent
2006 2005 Variance Variance
---------- ---------- ---------- ----------
Revenue
Rents (a) $ 79,201 $ 79,305 $ (104) -0.1%
Tenant reimbursements 11,365 11,917 (552) -4.6%
Other (b) 1,208 4,627 (3,419) -73.9%
---------- ---------- ----------
91,774 95,849 (4,075) -4.3%
Operating expenses
Property operating
expenses 29,302 30,330 (1,028) -3.4%
Real estate taxes 9,351 8,734 617 7.1%
---------- ---------- ----------
38,653 39,064 (411) -1.1%
---------- ---------- ----------
Net operating income $ 53,121 $ 56,785 $ (3,664) -6.5%
========== ========== ==========
(a) Includes straight-
line rental income of
$2,968 for 2006 and
$2,835 for 2005
(b) Includes net
termination fee income
of $482 for 2006 and
$4,020 for 2005
The following table is a
reconciliation of Net
Income to Same Store net
operating income:
Quarter Ended
March 31,
---------------------
2006 2005
---------- ----------
Net Income (loss) $ (2,642) $ 9,415
Add/(deduct):
Interest income (2,650) (378)
Interest expense 40,967 17,797
Equity in income of real
estate ventures (965) (558)
Depreciation and
amortization 60,334 28,435
Minority interest -
partners' share of
consolidated real estate
ventures (286) -
Minority interest
attributable to
continuing operations -
LP units (362) 327
Income from discontinued
operations (2,954) -
---------- ----------
Consolidated net
operating income (loss) 91,442 55,038
Less: Net operating
income of non same store
properties (41,250) 691
Less: Eliminations and
non-property specific net
operating income (loss) 2,929 1,056
---------- ----------
Same Store net operating
income (loss) $ 53,121 $ 56,785
========== ==========
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