Brandywine Realty Trust Announces Fourth Quarter and Full Year 2009 Earnings

$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, [phone], ; Company Contact, Howard

M. Sipzner, EVP & CFO, [phone], 



Web Site:  http://www.brandywinerealty.com/ 

Copyright