SOURCE: Brandywine Realty Trust

October 31, 2007 17:13 ET

Brandywine Realty Trust Nine Month FFO per Share Increases 5.4%

RADNOR, PA--(Marketwire - October 31, 2007) - 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 selected markets throughout the United States, announced today its financial and operating results for the three and nine month periods ended September 30, 2007.

Financial Highlights

--  Funds from operations (FFO) totaled $62.0 million or $0.68 per diluted
    share in the third quarter of 2007, compared to $63.7 million or $0.67 per
    diluted share in the third quarter of 2006.  Our FFO payout ratio for the
    third quarter of 2007 was 64.7%.
    
--  Net income totaled $0.4 million or $0.00 per diluted share in the
    third quarter of 2007, compared to a $1.4 million net loss or ($0.02) per
    diluted share in the third quarter of 2006.  In both instances, our
    reported results are influenced by non-cash real estate depreciation and
    amortization charges which are added back in the calculation of FFO.
    
--  Funds from operations totaled $179.6 million or $1.96 per diluted
    share for the nine months ended September 30, 2007, compared to $175.9
    million or $1.86 per diluted share for the nine months ended September 30,
    2006.  Our FFO payout ratio for the first nine months of 2007 was 67.3%.
    
--  Net income totaled $16.9 million or $0.19 per diluted share for the
    nine months ended September 30, 2007, compared to a $19.6 million net loss
    or ($0.22) per diluted share for the nine months ended September 30, 2006.
    We realized a $25.5 million gain on the disposition of discontinued
    operations during the nine months ended September 30, 2007, compared to a
    $5.2 million gain during the comparable period in 2006.
    

Portfolio Highlights

--  At September 30, 2007, our core portfolio was 94.2% occupied and 95.5%
    leased (reflecting recently executed leases) versus 91.3% and 93.2%,
    respectively, at September 30, 2006.  We owned 288 properties at September
    30, 2007, encompassing 271 properties in our core portfolio and 17
    properties under development or redevelopment.
    
--  Net operating income (NOI) for our same store portfolio increased 2.3%
    on a GAAP basis and 2.7% on a cash basis in the third quarter of 2007
    versus the third quarter of 2006 for the 255 same store properties which
    were 94.0% occupied on September 30, 2007 versus 92.9% occupied on
    September 30, 2006.  Our consolidated NOI margin on a GAAP basis was 63.1%
    for the third quarter of 2007 versus 61.8% in the third quarter of 2006.
    Year to date, net operating income for our same store portfolio has
    increased 2.6% on a GAAP basis and 3.7% on a cash basis.
    
--  For the third quarter of 2007, our core portfolio retention rate was
    74.2% with negative net absorption of 17,502 square feet.  In the third
    quarter of 2007, we achieved a 2.9% increase on our renewal rental rates
    and a 0.3% increase attributable to our new lease rental rates, both on a
    GAAP basis.  Year to date, we have achieved positive net absorption of
    309,264 square feet in our core portfolio.
    

Investment Highlights

--  During the third quarter of 2007, we acquired: 1) a 94.0% occupied
    five-property portfolio aggregating 508,067 square feet in the Boulders
    office park in Richmond, VA, for $96.3 million, utilizing the remaining
    $36.6 million of escrowed 1031 exchange funds attributable to prior sales;
    and 2) the historic Post Office building adjacent to the 30th Street train
    station and one block south of our existing Cira Centre office building in
    Philadelphia, PA for a purchase price of $28.0 million, which we plan to
    develop into an 862,692 square foot office building for the Internal
    Revenue Service.  We also entered into a 90-year ground lease with the
    University of Pennsylvania for the former postal annex facility across the
    street from the Post Office which we will redevelop into a 733,000 square
    foot, 2,400 car parking garage to support the IRS tenancy and which can
    accommodate the further development of up to an additional 1.3 million
    square feet of office, hotel, residential and retail uses subject to market
    conditions.
    
--  During the third quarter of 2007, we sold the Iron Run land parcels in
    Lehigh Valley, PA for $6.6 million and realized $0.4 million of gains on
    the sale.
    
--  At September 30, 2007, we were actively proceeding on seven ground-up
    office developments and eight office redevelopments with a total identified
    cost of $862.1 million of which $458.0 million remained to be funded.
    These figures include $375.0 million of total development costs for the
    combined Post Office and garage development of which $36.4 million has been
    funded with the balance expected to be funded for the most part, in 2009
    and 2010.
    

Capital Markets Highlights

--  On July 11, 2007, we repaid $136.0 million of fixed-rate mortgage
    loans without incurring any prepayment penalty.  We used our unsecured
    revolving credit facility to fund the repayment.
    
--  Subsequent to quarter end, we closed and funded a $150.0 million,
    three-year unsecured term loan with a floating rate of LIBOR plus 80 basis
    points.  We used the proceeds from the term loan to reduce outstanding
    borrowings on our unsecured revolving credit facility and have fixed the
    rate on a portion of our aggregate floating rate exposure for the upcoming
    three-year period.
    

"We are pleased with our third quarter performance," stated Gerard H. Sweeney, President and CEO of Brandywine Realty Trust. "We continue to experience occupancy gains in our core portfolio, even as we were able to execute a series of value-added termination transactions. We achieved better operating margins, realized improving rental rates and significantly reduced our capital expenditures related to leasing activities, all in line with our plan. We announced the commencement of the Cira Centre South development project encompassing the redevelopment of the historic Post Office which we have fully leased to the IRS along with an accompanying parking facility, and are actively planning the future components of this exciting area. We remain particularly focused on the lease-up of our existing development pipeline and our ongoing capital recycling program."

Distributions

On September 12, 2007, our Board of Trustees declared a quarterly dividend distribution of $0.44 per common share that was paid on October 19, 2007 to shareholders of record as of October 5, 2007. Our Board also declared 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 October 15, 2007 to holders of record as of September 30, 2007 of the Series C and Series D Preferred Shares, respectively.

Share Repurchase Program

We are authorized to purchase an additional 539,200 common shares and may make repurchases from time to time in the open market or in privately negotiated transactions, subject to market conditions and compliance with legal requirements. The share repurchase program does not contain any time limitation and does not obligate us to repurchase any shares. We may discontinue the program at any time.

2007 FFO Guidance

Based on current plans and assumptions and subject to the risks and uncertainties more fully described in Brandywine's reports filed with the Securities and Exchange Commission, we are narrowing our previously announced FFO guidance for full year 2007 to a range of $2.57 to $2.59 from the prior range of $2.57 to $2.65 per diluted share. This guidance is provided for informational purposes and is subject to change. The following is a reconciliation of the calculation of FFO per diluted share and earnings per diluted share:

Guidance for 2007                                   Range or Value
------------------                                ------------------
Earnings (loss) per diluted share allocated
 to common shareholders                           $ 0.12  to  $ 0.14
Less: gains on sales of real estate                (0.28)      (0.28)
Plus: real estate depreciation and amortization     2.73        2.73
                                                  ------      ------
FFO per diluted share                             $ 2.57  to  $ 2.59
                                                  ======      ======

We are also announcing that we may recognize a non-cash charge of $0.04 per diluted share ($3.7 million) in the fourth quarter related to a potentially unutilized interest rate hedge which we cash-settled in September 2007. The recognition of this charge would result in an FFO guidance range of $2.53 to $2.55 per diluted share. For guidance purposes, we have not considered any future gains from the sale of real estate not previously disclosed, the impact on operating income from future sales of properties or losses from impairment write-downs of our assets or securities. Our 2007 FFO guidance does not include any income from the sale of undepreciated real estate, in accordance with our prior practice.

Forward-Looking Statements

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 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; competition for real estate acquisitions; 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 Annual Report for the year ended December 31, 2006. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events except as required by law.

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 minority interest of unit holders (preferred and common) 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 minority interest. 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 provide FFO adjusted for debt extinguishment costs. 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 the effects of debt extinguishment, 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, minority interest in the Operating Partnership and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, income from discontinued operations, income from unconsolidated joint ventures and minority interest in property partnerships. 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.

Third Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, November 1, 2007 at 10:00 a.m. EDT. The conference call can be accessed by calling 1-800-683-1525 and referencing conference ID #9240729. Beginning two hours after the conference call, a taped replay of the call can be accessed 24 hours a day through Thursday, November 15, 2007 by calling 1-877-519-4471 and providing access code 9240729. In addition, the conference call can be accessed via a web cast located on our website at www.brandywinerealty.com.

We have prepared a supplemental information package that includes financial results and operational statistics related to the third quarter earnings report. The supplemental information package is available in the "Investor Relations - Financial Reports" section of our website at www.brandywinerealty.com.

Looking Ahead - Fourth Quarter 2007 Conference Call

We anticipate that we will release our fourth quarter 2007 earnings on Wednesday, February 20, 2008, after the market close and will host our fourth quarter 2007 conference call on Thursday, February 21, 2008, at 11:00 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 44.1 million square feet, including 30.6 million square feet which it currently owns on a consolidated basis. For more information, visit our website at www.brandywinerealty.com.

                         BRANDYWINE REALTY TRUST
                        CONSOLIDATED BALANCE SHEETS
                        (unaudited, in thousands)


                                                 September 30, December 31,
                                                      2007         2006
                                                  -----------  -----------

ASSETS
Real estate investments:
      Operating properties                        $ 4,997,025  $ 4,927,305
      Accumulated depreciation                       (583,843)    (515,698)
                                                  -----------  -----------
                                                    4,413,182    4,411,607
      Development land and
       construction-in-progress                       406,732      328,119
                                                  -----------  -----------
                                                    4,819,914    4,739,726

Cash and cash equivalents                              17,661       25,379
Accounts receivable, net                               17,644       19,957
Accrued rent receivable, net                           81,529       71,589
Assets held for sale, net                                   -      126,016
Investment in real estate ventures                     72,237       74,574
Deferred costs, net                                    84,309       73,708
Intangible assets, net                                233,405      281,251
Other assets                                           79,358       96,818
                                                  -----------  -----------

      Total assets                                $ 5,406,057  $ 5,509,018
                                                  ===========  ===========



LIABILITIES AND BENEFICIARIES' EQUITY
Mortgage notes payable, including premiums        $   617,645  $   883,920
Borrowings under credit facilities                    442,664       60,000
Unsecured senior notes, net of discounts            2,208,207    2,208,310
Accounts payable and accrued expenses                 111,480      108,400
Distributions payable                                  42,253       42,760
Tenant security deposits and deferred rents            59,107       55,697
Acquired lease intangibles, net                        72,731       92,527
Other liabilities                                      17,899       14,661
Mortgage note payable and other liabilities held
 for sale, net                                              -       20,826
                                                  -----------  -----------
      Total liabilities                             3,571,986    3,487,101

Minority interest                                      81,583      123,991

Beneficiaries' equity:
   Preferred shares - Series C                             20           20
   Preferred shares - Series D                             23           23
   Common shares                                          870          883
   Additional paid-in capital                       2,269,248    2,311,541
   Cumulative earnings                                446,706      423,764
   Accumulated other comprehensive (loss) income       (2,865)       1,576
   Cumulative distributions                          (961,514)    (839,881)
                                                  -----------  -----------
      Total beneficiaries' equity                   1,752,488    1,897,926
                                                  -----------  -----------

      Total liabilities and beneficiaries' equity $ 5,406,057  $ 5,509,018
                                                  ===========  ===========



                          BRANDYWINE REALTY TRUST
                  CONSOLIDATED STATEMENTS OF OPERATIONS
        (unaudited, in thousands, except share and per share data)


                              Three Months Ended      Nine Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
Revenue
   Rents                    $  142,089  $  131,649  $  418,626  $  385,185
   Tenant reimbursements        21,415      22,648      63,254      54,778
   Other                        11,900       8,145      20,929      16,826
                            ----------  ----------  ----------  ----------
      Total revenue            175,404     162,442     502,809     456,789

Operating Expenses
   Property operating
    expenses                    48,866      46,396     140,036     128,874
   Real estate taxes            15,848      15,724      48,310      44,319
   Depreciation and
    amortization                61,516      60,292     181,790     175,649
   General & administrative
    expenses                     7,452       6,490      21,714      22,704
                            ----------  ----------  ----------  ----------
      Total operating
       expenses                133,682     128,902     391,850     371,546
                            ----------  ----------  ----------  ----------

Operating income                41,722      33,540     110,959      85,243

Other income (expense)
   Interest income               1,060       2,479       3,450       7,702
   Interest expense            (40,868)    (44,504)   (122,029)   (126,478)
   Deferred financing costs     (1,058)       (789)     (3,381)     (2,062)
   Equity in income of real
    estate ventures                763         370       6,021       1,798
   Net gain on disposition
    of undepreciated real
    estate                         421           -         421       2,608
   Gain on termination of
    purchase contract                -       3,147           -       3,147
                            ----------  ----------  ----------  ----------
Income (loss) before
 minority interest and
 discontinued operations         2,040      (5,757)     (4,559)    (28,042)
Minority interest -
 partners' share of
 consolidated real estate
 ventures                            5         279        (103)        560
Minority interest
 attributable to continuing
 operations - LP units              (2)        344         456       1,486
                            ----------  ----------  ----------  ----------
Income (loss) from
 continuing operations           2,043      (5,134)     (4,206)    (25,996)
Discontinued operations:
   Income from discontinued
    operations                       -       2,643       2,869      10,008
   Net gain on disposition
    of discontinued
    operations                     338       5,188      25,491       5,188
   Minority interest -
    partners' share of
    consolidated real
    estate venture                   -      (1,857)          -      (2,239)
   Minority interest
    attributable to
    discontinued operations
    - LP units                     (14)       (276)     (1,211)       (595)
                            ----------  ----------  ----------  ----------
                                   324       5,698      27,149      12,362
                            ----------  ----------  ----------  ----------
Net income (loss)                2,367         564      22,943     (13,634)
Income allocated to
 Preferred Shares               (1,998)     (1,998)     (5,994)     (5,994)
                            ----------  ----------  ----------  ----------
Income (loss) allocated to
 Common Shares              $      369  $   (1,434) $   16,949  $  (19,628)
                            ==========  ==========  ==========  ==========

PER SHARE DATA
Basic income (loss) per
 Common Share               $     0.00  $    (0.02) $     0.19  $    (0.22)
                            ==========  ==========  ==========  ==========
Basic weighted-average
 shares outstanding         86,897,335  90,042,270  87,416,757  89,963,541

Diluted income (loss) per
 Common Share               $     0.00  $    (0.02) $     0.19  $    (0.22)
                            ==========  ==========  ==========  ==========
Diluted weighted-average
 shares outstanding         87,114,598  90,042,270  87,882,401  89,963,541



                          BRANDYWINE REALTY TRUST
        FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
        (unaudited, in thousands, except share and per share data)


                                 Three Months Ended    Nine Months Ended
                                   September 30,         September 30,
                               --------------------- ---------------------
                                  2007       2006       2007       2006
                               ---------- ---------- ---------- ----------
Reconciliation of Net Income to
 Funds from Operations (FFO):
Net income (loss) allocated to
 common shares                 $      369 $   (1,434)$   16,949 $  (19,628)

Add (deduct):
  Minority interest
   attributable to continuing
   operations - LP units                2       (344)      (456)    (1,486)
  Net gains on sale of
   undepreciated real estate         (421)         -       (421)    (2,608)
  Minority interest
   attributable to discontinued
   operations - LP units               14        276      1,211        595
  Net loss (gain) on
   disposition of discontinued
   operations                        (338)    (5,188)   (25,491)    (5,188)
  Minority interest - partners'
   share of net gain on sale            -      1,757          -      1,757
                               ---------- ---------- ---------- ----------
Loss before net gains on sale
 of interests in real estate
 and minority interest               (374)    (4,933)    (8,208)   (26,558)
Add:
  Depreciation and
   amortization:
       Real property -
        continuing operations      44,266     43,798    130,804    127,544
       Leasing costs (includes
        acquired intangibles) -
        continuing operations      16,602     16,373     49,059     47,572
       Real property -
        discontinued operations         -      4,725      2,622     15,699
       Leasing costs (includes
        acquired intangibles) -
        discontinued operations         -      3,579      1,972     11,473
       Company's share of
        unconsolidated real
        estate ventures             1,662      1,651      4,702      5,018
       Partners' share of
        consolidated real
        estate ventures              (183)    (1,474)    (1,355)    (4,827)
                               ---------- ---------- ---------- ----------
Funds from operations          $   61,973 $   63,719 $  179,596 $  175,921
                               ========== ========== ========== ==========
FFO per share - fully diluted  $     0.68 $     0.67 $     1.96 $     1.86
                               ========== ========== ========== ==========
Weighted-average shares/units
 outstanding - fully diluted   90,989,460 94,489,619 91,800,082 94,419,070
Distributions per Common Share $     0.44 $     0.44 $     1.32 $     1.32
                               ========== ========== ========== ==========
Payout ratio of FFO
 (Distribution per Common Share
 divided by FFO per Share)           64.7%      65.7%      67.3%      71.0%

CASH AVAILABLE FOR DISTRIBUTION
 (CAD):
Funds from operations          $   61,973 $   63,719 $  179,596 $  175,921
Add (deduct):
  Rental income from
   straight-line rent              (5,486)    (7,568)   (20,261)   (23,485)
  Deferred market rental income    (3,007)    (2,160)    (9,312)    (6,067)
  Operating expense from
   straight-line rent                 383          -      1,140          -
  Net gains on sale of
   undepreciated real estate          421          -        421      2,608
  Revenue maintaining capital
   expenditures
         Building improvements     (2,416)    (4,182)    (5,324)    (6,747)
         Tenant improvements       (9,424)    (7,120)   (32,781)   (21,425)
         Lease commissions         (2,911)    (3,185)    (9,060)    (6,217)
                               ---------- ---------- ---------- ----------
  Total revenue maintaining
   capital expenditures           (14,751)   (14,487)   (47,165)   (34,389)
Cash available for
 distribution                  $   39,533 $   39,504 $  104,419 $  114,588
                               ========== ========== ========== ==========
CAD per share - fully diluted  $     0.43 $     0.42 $     1.14 $     1.21
                               ========== ========== ========== ==========
Weighted-average shares/units
 outstanding - fully diluted   90,989,460 94,489,619 91,800,082 94,419,070
Distributions per Common Share $     0.44 $     0.44 $     1.32 $     1.32
                               ========== ========== ========== ==========
Payout ratio of CAD
 (Distribution per Common Share
 divided by CAD per Share)          102.3%     104.8%     115.8%     109.1%



                          BRANDYWINE REALTY TRUST
                      SAME STORE OPERATIONS - QUARTER
                       (unaudited and in thousands)


Of the 288 properties owned by the Company as of September 30, 2007, a
total of 255 properties ("Same Store Properties") containing an aggregate
of 23.6 million net rentable square feet were owned for the entire three
month periods ended September 30, 2007 and 2006.  Average occupancy for the
Same Store Properties was 93.8% during 2007 and 93.1% during 2006. The
following table sets forth revenue and expense information for the Same
Store Properties:


                                                     Three-months ended
                                                        September 30,
                                                  ------------------------
                                                      2007         2006
                                                  -----------  -----------
Revenue
   Rents                                          $   117,919  $   116,218
   Tenant reimbursements                               18,999       21,109
   Termination fees                                     7,598        4,629
   Other, excluding termination fees                      875          838
                                                  -----------  -----------
                                                      145,391      142,794
Operating expenses
   Property operating expenses                         44,022       42,970
   Real estate taxes                                   13,333       13,758
                                                  -----------  -----------
   Net operating income                           $    88,036  $    86,066
                                                  ===========  ===========

   Net operating income percentage increase over
    prior year                                            2.3%


Net operating income                              $    88,036  $    86,066
      Straight line rents                              (2,398)      (2,989)
      FAS 141 rents                                    (2,145)      (1,762)
                                                  -----------  -----------

   Cash - Net operating income                    $    83,493  $    81,315
                                                  ===========  ===========

   Cash - Net operating income percentage
    increase over prior year                              2.7%



The following table is a reconciliation of Net Income to Same Store net
operating income:

                                                     Three-months ended
                                                        September 30,
                                                  ------------------------
                                                      2007         2006
                                                  -----------  -----------
Net Income (loss)                                 $     2,367  $       564
Add/(deduct):
   Interest income                                     (1,060)      (2,479)
   Interest expense                                    40,868       44,504
   Deferred financing costs                             1,058          789
   Equity in income of real estate ventures              (763)        (370)
   Depreciation and amortization                       61,516       60,292
   Net gain on sale of undepreciated real estate         (421)           -
   Gain on termination of purchase contract                 -       (3,147)
   General & administrative expenses                    7,452        6,490
   Minority interest - partners' share of
    consolidated real estate ventures                      (5)        (279)
   Minority interest attributable to continuing
    operations - LP units                                   2         (344)
   Income from discontinued operations                   (324)      (5,698)
                                                  -----------  -----------
      Consolidated net operating income               110,690      100,322
Less:  Net operating income of non same store
 properties                                           (17,756)      (9,555)
Less:  Eliminations and non-property specific net
 operating income (loss)                               (4,898)      (4,701)
                                                  -----------  -----------
      Same Store net operating income             $    88,036  $    86,066
                                                  ===========  ===========



                          BRANDYWINE REALTY TRUST
                       SAME STORE OPERATIONS - YEAR
                       (unaudited and in thousands)


Of the 288 properties owned by the Company as of September 30, 2007, a
total of 254 properties ("Same Store Properties") containing an aggregate
of 23.5 million net rentable square feet were owned for the entire nine
month periods ended September 30, 2007 and 2006.  Average occupancy for the
Same Store Properties was 93.4% during 2007 and 92.5% during 2006.  The
following table sets forth revenue and expense information for the Same
Store Properties:

                                                      Nine-months ended
                                                        September 30,
                                                  ------------------------
                                                      2007       2006 (a)
                                                  -----------  -----------
Revenue
   Rents                                          $   351,454  $   347,036
   Tenant reimbursements                               56,930       50,251
   Termination fees                                     8,556        6,256
   Other, excluding termination fees                    2,207        2,270
                                                  -----------  -----------
                                                      419,147      405,813
Operating expenses
   Property operating expenses                        125,790      120,591
   Real estate taxes                                   41,150       39,288
                                                  -----------  -----------
   Net operating income                           $   252,207  $   245,934
                                                  ===========  ===========

                                                  ===========
   Net operating income percentage increase over
    prior year                                            2.6%
                                                  ===========


Net operating income                              $   252,207  $   245,934
      Straight line rents                              (8,878)     (12,195)
      FAS 141 rents                                    (6,304)      (5,265)
                                                  -----------  -----------

   Cash - Net operating income                    $   237,025  $   228,474
                                                  ===========  ===========

                                                  ===========
   Cash - Net operating income percentage
    increase over prior year                              3.7%
                                                  ===========


The following table is a reconciliation of Net
 Income to Same Store net operating income:

                                                   Nine-months ended
                                                     September 30,
                                               ------------------------
                                                   2007         2006
                                               -----------  -----------
Net Income (loss)                              $    22,943  $   (13,634)
Add/(deduct):
   Interest income                                  (3,450)      (7,702)
   Interest expense                                122,029      126,478
   Deferred financing costs                          3,381        2,062
   Equity in income of real estate ventures         (6,021)      (1,798)
   Depreciation and amortization                   181,790      175,649
   Net gain on sale of undepreciated real
    estate                                            (421)      (2,608)
   Gain on termination of purchase contract              -       (3,147)
   General & adminsitrative expenses                21,714       22,704
   Minority interest - partners' share of
    consolidated real estate ventures                  103         (560)
   Minority interest attributable to
    continuing operations - LP units                  (456)      (1,486)
   Income from discontinued operations             (27,149)     (12,362)
                                               -----------  -----------
      Consolidated net operating income            314,463      283,596
Less:  Net operating income of non same
 store properties                                  (47,123)     (23,241)
Less:  Eliminations and non-property specific
 net operating income (loss)                       (15,133)     (14,421)(a)
                                               -----------  -----------
      Same Store net operating income          $   252,207  $   245,934
                                               ===========  ===========

(a) The Prentiss properties were acquired on January 5, 2006.  For
    comparative purposes, the Prentiss assets in the same store portfolio
    have been adjusted to reflect a full nine-month period for 2006 and
    allow a more meaningful comparison, with the addition of $1,529 and
    $1,455 to net operating income and cash net operating income,
    respectively.

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