SOURCE: Brandywine Realty Trust

February 22, 2007 17:55 ET

Brandywine Realty Trust Announces Fourth Quarter and Full Year 2006 Earnings

RADNOR, PA -- (MARKET WIRE) -- February 22, 2007 -- Brandywine Realty Trust (NYSE: BDN), one of the largest real estate investment trusts focused on the ownership, management and development of class A, suburban and urban office buildings in selected markets throughout the United States, announced today its financial results for the three and twelve month periods ended December 31, 2006. The highlights are as follows:

Financial Highlights

--  Net income totaled $24.1 million or $0.25 per diluted share in the
    fourth quarter of 2006, compared to $8.6 million or $0.12 per diluted share
    in the fourth quarter of 2005.
    
--  Funds from operations (FFO) totaled $59.0 million or $0.63 per diluted
    share in the fourth quarter of 2006, compared to $34.1 million or $0.58 per
    diluted share in the fourth quarter of 2005.  Excluding $1.4 million and
    $1.9 million of non-cash debt extinguishment costs in the fourth quarters
    of 2006 and 2005, respectively, FFO would have totaled $60.4 million or
    $0.65 per diluted share in the fourth quarter of 2006, compared to $36.0
    million or $0.62 per diluted share in the fourth quarter of 2005.
    
--  Net income totaled $10.5 million or $0.03 per diluted share in 2006,
    compared to $42.8 million or $0.62 per diluted share in 2005.
    
--  FFO totaled $234.9 million or $2.49 per diluted share in 2006,
    compared to $141.8 million or $2.44 per diluted share in 2005. Excluding
    the aforementioned debt extinguishment costs, FFO would have totaled $236.3
    million or $2.51 per diluted share in 2006, compared to $143.7 million or
    $2.47 per diluted share in 2005.
    
--  Our FFO payout ratio was 69.8% for the fourth quarter of 2006 and
    70.7% for all of 2006.
    
Portfolio Highlights
--  At December 31, 2006, the core portfolio was 91.5% occupied and 93.2%
    leased versus 90.9% and 92.3%, respectively, at December 31, 2005.
    Overall, we owned 313 properties at December 31, 2006 encompassing 285
    properties in the core portfolio, 13 properties under development,
    redevelopment or lease-up and 15 properties in our consolidated joint
    ventures.
    
--  Net operating income (NOI) in the fourth quarter of 2006 increased
    5.5% on a GAAP basis and 8.2% on a cash basis versus the fourth quarter of
    2005 for the 238 same store properties which were 92.3% occupied on
    December 31, 2006 versus 91.0% on December 31, 2005.  Our overall NOI
    margin on a GAAP basis was 62.7% for the fourth quarter of 2006 and 61.7%
    for all of 2006.
    
--  In the fourth quarter of 2006, our core portfolio retention rate was
    82.1% with net absorption of 177,000 square feet, resulting in total 2006
    net absorption of 455,000 square feet.
    
Investment Highlights
--  During 2006, we purchased five office properties for an aggregate
    price of $227.2 million and four land parcels for future development at a
    cost of $15.7 million, in addition to closing the $2.6 billion Prentiss
    merger in January 2006.
    
--  During 2006, we sold 23 office properties for total proceeds of $467.3
    million generating $20.2 million of gains on the sale of these discontinued
    properties and sold four undepreciated land parcels for $29.2 million
    generating an additional $14.2 million of gains.  The $14.2 million of
    gains on the sale of the undepreciated land parcels (as well as the $20.2
    million of gains on the sale of discontinued properties) have not been
    included in our calculation of FFO or Cash Available for Distribution
    (CAD).
    
--  In 2006, we completed $215.4 million of development activity at an
    overall annualized GAAP and cash yield on cost of 9.1% and 7.0%,
    respectively, based on executed leases and our estimate of the associated
    operating expenses.  At December 31, 2006, our development pipeline
    encompassed nine major projects with a total projected cost of $304.3
    million of which $141.2 million had been funded.  Completion of these
    projects is expected to occur between May 2007 and October 2008.
    
Capital Markets Highlights
--  In 2006, we implemented a new $600 million unsecured credit facility,
    raised $1.2 billion via three unsecured note issuances and one exchangeable
    note issuance, spent $59.9 million to repurchase 1.8 million common shares
    in conjunction with our exchangeable note issuance, spent an additional
    $34.4 million to repurchase 1.2 million common shares, and used the
    securities portfolio held as collateral in conjunction with the defeasance
    of our $181.8 million secured note due in February 2007 to prepay that note
    in November 2006.
    
--  During 2006, we repaid $16.9 million of mortgage notes, transferred a
    $13.5 million mortgage note to the buyer of one of our properties and
    entered into a new $20.5 million mortgage note in conjunction with the
    financing of one of our consolidated joint ventures.
    
--  As a result of these and other related activities, our debt (net of
    cash on hand) to total market capitalization was 49.7% at December 31,
    2006, and we achieved a 2.5 times interest coverage ratio for all of 2006.
    
--  In January 2007, we redeemed our $300 million Floating Rate Guaranteed
    Notes due 2009, thereby incurring the aforementioned $1.4 million of non-
    cash debt extinguishment costs.
    
"2006 was a very successful year for our company," stated Gerard H. Sweeney, Brandywine Realty Trust's President and Chief Executive Officer. "We completed the merger and ensuing integration of Prentiss Properties into Brandywine resulting in a more diversified geographic platform, a broader and deeper management team and expanded tenant relationships. Our leasing, development and capital recycling programs are all on or ahead of target, and our strong balance sheet gives us ample flexibility to execute our internal and external growth initiatives. With more favorable conditions emerging in our target markets, we hope to deliver more meaningful growth from our existing operations in 2007 and beyond."

Financial Results

Net income totaled $24.1 million or $0.25 per diluted share in the fourth quarter of 2006, compared to $8.6 million or $0.12 per diluted share in the fourth quarter of 2005. The fourth quarter of 2006 included $11.6 million of gains on the sale of undepreciated land and $15.1 million of gains on the sale of discontinued operations, while the corresponding period in 2005 had neither of these.

FFO totaled $59.0 million or $0.63 per diluted share in the fourth quarter of 2006, compared to $34.1 million or $0.58 per diluted share in the fourth quarter of 2005. Excluding $1.4 million and $1.9 million of accelerated amortization of deferred financing costs related to the early pay-off of certain loans in the fourth quarters of 2006 and 2005, respectively, FFO totaled $60.4 million or $0.65 per diluted share in the fourth quarter of 2006, compared to $36.0 million or $0.62 per diluted share in the fourth quarter of 2005.

Net income totaled $10.5 million or $0.03 per diluted share in 2006, compared to $42.8 million or $0.62 per diluted share in 2005. 2006 included $14.2 million of gains on the sale of undepreciated land and $20.2 million of gains on the sale of discontinued operations, while 2005 had $4.6 million of gains on the sale of undepreciated land and $2.2 million of gains on the sale of discontinued operations.

FFO totaled $234.9 million or $2.49 per diluted share in 2006, compared to $141.8 million or $2.44 per diluted share in 2005. Incorporating the aforementioned non-cash adjustments related to early loan pay-offs, FFO totaled $236.3 million or $2.51 per diluted share in 2006, compared to $143.7 million or $2.47 per diluted share in 2005.

Our 2006 fourth quarter and full year incorporate the operations of the former Prentiss Property Trust from January 6, 2006 onward, reflecting the closing of the associated merger on January 5, 2006. In conjunction with the merger, Brandywine Realty Trust has completed its purchase accounting for the transaction, which among other things, resulted in a series of intangible assets and liabilities whose amortization is reflected in the results of operations for the associated periods.

Distributions

On December 19, 2006, the Board of Trustees declared a quarterly dividend distribution of $0.44 per common share that was paid on January 15, 2007 to shareholders of record as of January 5, 2007. The Board also declared quarterly dividends 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, 2007 to holders of record as of December 30, 2006 of the Series C and Series D Preferred Shares, respectively.

Share Repurchase Program

As of December 31, 2006, the Company may purchase an additional 2,319,800 common shares under its Board-approved share repurchase program. Repurchases may be made 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 the Company to repurchase any shares. The Company 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 revising our previously announced guidance for full year 2007 FFO per diluted share to a range of $2.57 to $2.65 from the prior range of $2.55 to $2.65, reflecting the recognition of the $1.4 million early debt extinguishment charge in the fourth quarter of 2006. All other prior assumptions remain unchanged at this time. 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            $(0.16) to $(0.09)
Plus: real estate depreciation
 and amortization                              2.73  to   2.74
                                             ------     ------
FFO per diluted share                        $ 2.57  to $ 2.65
                                             ======     ======
For guidance purposes, we have not considered gains from the sale of real estate not otherwise 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 line 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 the actual results, performance, achievements or transactions of the Company and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others: the Company's ability to lease vacant space and to renew or relet space under expiring 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 and equity financing, competition for real estate acquisitions and risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns, unanticipated operating and capital costs, the Company's ability to obtain adequate insurance, including coverage for terrorist acts, dependence upon certain geographic markets, and general and local economic and real estate conditions, including the extent and duration of adverse changes that affect the industries in which the Company's tenants compete.

Additional information on factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report for the year ended December 31, 2005. The Company assumes 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

Funds from Operations

The Company computes its financial results in accordance with generally accepted accounting principles (GAAP). Although FFO is a non-GAAP financial measure, the Company believes that information regarding FFO is helpful to shareholders and potential investors and is a widely recognized measure of real estate investment trust (REIT) performance. The Company computes 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 the Company. NAREIT defines FFO as net income (loss) before minority interest of unit holders (preferred and common) and excluding gains (losses) on sales of 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 the Company believes 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 the Company's historical operating results, FFO should be examined in conjunction with net income (determined in accordance with GAAP) as presented in the financial statements included elsewhere in this release. FFO does not represent cash generated from operating activities in accordance with GAAP and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of the Company's financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is it indicative of funds available for the Company's cash needs, including its ability to make cash distributions to shareholders.

For information purposes, we also provide FFO adjusted for debt extinguishment costs. Although our 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, management and investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO.

Cash Available for Distribution

Cash available for distribution is a non-GAAP financial measure that is not intended to represent cash flow for the period and is not indicative of cash flow provided by operating activities as determined under GAAP. CAD is presented solely as a supplemental disclosure with respect to liquidity because the Company believes it provides useful information regarding the Company's ability to fund its dividends. Because all companies do not calculate CAD the same way, the presentation of CAD may not be comparable to similarly titled measures of other companies.

Fourth Quarter Earnings Call and Supplemental Information Package

The Company will be hosting a conference call on Friday, February 23, 2007 at 11:00 a.m. EST. The conference call can be accessed by calling 1-800-683-1525 and referencing conference ID #8363577. After the conference, a taped replay of the call can be accessed 24 hours a day through Friday, March 9, 2007 by calling 1-877-519-4471 and providing access code 8363577. In addition, the conference call can be accessed via a web cast located on the Company's website at www.brandywinerealty.com.

The Company has prepared a Supplemental Information package that includes financial results and operational statistics to support the announcement of fourth quarter earnings. The Supplemental Information package is available in the "Investor Relations - Financial Reports" section of the Company's website at www.brandywinerealty.com.

Looking Ahead - First Quarter 2007 Conference Call

We anticipate that we will release our first quarter 2007 earnings on Tuesday, May 1, 2007, after the market close and will host our first quarter 2007 conference call on Wednesday, May 2, 2007, at 11:00 a.m. EDT. 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 (NYSE: BDN), with headquarters in Radnor, PA, is one of the largest full-service, completely integrated real estate companies in the United States. Organized as a real estate investment trust (REIT), Brandywine owns, manages or has ownership interests in office and industrial properties aggregating 43 million square feet. For more information, visit Brandywine's website at www.brandywinerealty.com.


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

                                             December 31,    December 31,
                                                 2006            2005
                                            --------------  --------------
ASSETS
Real estate investments:
   Operating properties                     $    4,927,305  $    2,560,061
   Accumulated depreciation                       (515,698)       (390,333)
                                            --------------  --------------
                                                 4,411,607       2,169,728
      Construction-in-progress                     217,886         273,240
      Land held for development                    110,233          98,518
                                            --------------  --------------
                                                 4,739,726       2,541,486

Cash and cash equivalents                           25,377           7,174
Restricted cash                                     22,559          18,498
Accounts receivable, net                            19,957          12,874
Accrued rent receivable, net                        71,589          47,034
Assets held for sale, net                          126,016               -
Investment in real estate ventures                  74,574          13,331
Deferred costs, net                                 73,708          37,602
Intangible assets, net                             281,251          78,097
Other assets                                        73,506          49,649
                                            --------------  --------------
      Total assets                          $    5,508,263  $    2,805,745
                                            ==============  ==============



LIABILITIES AND BENEFICIARIES' EQUITY
Mortgage notes payable                      $      883,920  $      494,777
Borrowings under credit facilities                  60,000          90,000
Unsecured senior notes, net of discounts         2,208,310         936,607
Accounts payable and accrued expenses              108,400          52,635
Distributions payable                               42,760          28,880
Tenant security deposits and deferred rents         55,697          20,953
Acquired lease intangibles, net                     92,527          34,704
Other liabilities                                   13,906           4,466
Mortgage note payable and other liabilities
 held for sale, net                                 20,826               -
                                            --------------  --------------
      Total liabilities                          3,486,346       1,663,022

Minority interest                                  123,991          37,859

Beneficiaries' equity:
   Preferred shares - Series C                          20              20
   Preferred shares - Series D                          23              23
   Common shares                                       883             562
   Additional paid-in capital                    2,311,541       1,369,913
   Cumulative earnings                             423,764         413,282
   Accumulated other comprehensive (income)
    loss                                             1,576          (3,169)
   Cumulative distributions                       (839,881)       (675,767)
                                            --------------  --------------
      Total beneficiaries' equity                1,897,926       1,104,864
                                            --------------  --------------

      Total liabilities and beneficiaries'
       equity                               $    5,508,263  $    2,805,745
                                            ==============  ==============



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

                              Three Months Ended      Twelve Months Ended
                            ----------------------  ----------------------
                             December    December    December    December
                                31,         31,         31,         31,
                               2006        2005        2006        2005
                            ----------  ----------  ----------  ----------
Revenue
    Rents                   $  145,108  $   81,341  $  559,936  $  318,218
    Tenant reimbursements       24,541      14,272      80,470      48,562
    Other                        5,085       2,047      22,395      13,844
                            ----------  ----------  ----------  ----------
       Total revenue           174,734      97,660     662,801     380,624

Operating Expenses
    Property operating
     expenses                   47,613      29,339     188,001     111,192
    Real estate taxes           17,640       9,977      65,584      38,180
    Depreciation and
     amortization               59,520      26,406     248,132     109,118
    Administrative expenses      6,940       4,366      29,644      17,982
                            ----------  ----------  ----------  ----------
       Total operating
        expenses               131,713      70,088     531,361     276,472
                            ----------  ----------  ----------  ----------

Operating income                43,021      27,572     131,440     104,152

Other income (expense)
    Interest income              1,811         410       9,513       1,370
    Interest expense           (44,699)    (18,570)   (171,177)    (70,152)
    Deferred financing costs    (2,545)     (2,316)     (4,607)     (3,766)
    Equity in income of
     real estate ventures          367         874       2,165       3,172
    Net gain on sale of
     interests in real
     estate                     11,582           -      14,190       4,640
    Gain on termination of
     purchase contract               -           -       3,147           -
                            ----------  ----------  ----------  ----------
Income (loss) before
 minority interest               9,537       7,970     (15,329)     39,416
Minority interest -
 partners' share of
 consolidated real estate
 ventures                         (290)          -         270           -
Minority interest
 attributable to continuing
 operations - LP units            (318)       (143)      1,028      (1,237)
                            ----------  ----------  ----------  ----------
Income (loss) from
 continuing operations           8,929       7,827     (14,031)     38,179

Discontinued operations:
    Income from
     discontinued
     operations                    849         827       7,681       2,555
    Net gain on disposition
     of discontinued
     operations                 15,055           -      20,243       2,196
    Minority interest -
     partners' share of
     consolidated real
     estate venture                  -           -      (2,239)          -
    Minority interest
     attributable to
     discontinued
     operations - LP units        (717)        (28)     (1,172)       (163)
                            ----------  ----------  ----------  ----------
                                15,187         799      24,513       4,588
                            ----------  ----------  ----------  ----------

Net income                      24,116       8,626      10,482      42,767
Income allocated to
 Preferred Shares               (1,998)     (1,998)     (7,992)     (7,992)
                            ----------  ----------  ----------  ----------
Income allocated to Common
 Shares                     $   22,118  $    6,628  $    2,490  $   34,775
                            ==========  ==========  ==========  ==========

PER SHARE DATA
Basic income per Common
 Share                      $     0.25  $     0.12  $     0.03  $     0.62
                            ==========  ==========  ==========  ==========
Basic weighted-average
 shares outstanding         88,331,988  56,179,075  89,552,301  55,846,268

Diluted income per Common
 Share                      $     0.25  $     0.12  $     0.03  $     0.62
                            ==========  ==========  ==========  ==========
Diluted weighted-average
 shares outstanding         89,186,374  56,357,483  90,070,825  56,104,588



                          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
                        ------------------------  ------------------------
                          12/31/06     12/31/05     12/31/06     12/31/05
                        -----------  -----------  -----------  -----------
Reconciliation of Net
 Income to Funds from
 Operations (FFO):
Net income              $    24,116  $     8,626  $    10,482  $    42,767

Add (deduct):
  Minority interest
   attributable to
   continuing operations
   - LP units                   318          143       (1,028)       1,237
  Net gains on sale of
   undepreciated real
   estate                   (11,582)           -      (14,190)      (4,640)
  Minority interest
   attributable to
   discontinued
   operations - LP units        717           28        1,172          163
  Net gains on
   disposition of
   discontinued
   operations               (15,055)           -      (20,243)      (2,196)
  Minority Interest -
   partners' share of
   net gain on sale               -            -        1,757            -
                        -----------  -----------  -----------  -----------
Income (loss) before
 net gains on sale of
 interests in real
 estate and minority
 interest                    (1,486)       8,797      (22,050)      37,331

Add:
  Depreciation:
    Real property -
     continuing
     operations              39,480       20,200      168,515       80,414
    Real property -
     discontinued
     operations               3,076          690       17,284        2,939
    Company's share of
     unconsolidated real
     estate ventures          1,722          371        6,740        1,798
    Partners' share of
     consolidated real
     estate ventures         (1,554)           -       (6,381)           -
    Amortization of
     leasing costs
     (includes acquired
     intangibles)            19,725        6,042       78,770       27,304
    Perpetual Preferred
     Share distributions     (1,998)      (1,998)      (7,992)      (7,992)

Funds from operations
 (1)                    $    58,965  $    34,102  $   234,886  $   141,794
                        ===========  ===========  ===========  ===========
FFO, excluding
 accelerated debt
 extinguishment costs
 (2)                    $    60,355  $    36,024  $   236,276  $   143,716
                        ===========  ===========  ===========  ===========
FFO per share - fully
 diluted                $      0.63  $      0.58  $      2.49  $      2.44
                        ===========  ===========  ===========  ===========
FFO per share - fully
 diluted, excluding
 accelerated debt
 extinguishment costs
 (2)                    $      0.65  $      0.62  $      2.51  $      2.47
                        ===========  ===========  ===========  ===========
Weighted-average
 shares/units
 outstanding - fully
 diluted                 93,361,536   58,302,750   94,222,124   58,111,162

EPS - diluted           $      0.25  $      0.12  $      0.03  $      0.62
                        ===========  ===========  ===========  ===========
Weighted-average shares
 outstanding - fully
 diluted                 89,186,374   56,357,483   90,070,825   56,104,588

Distributions per
 Common Share           $      0.44  $      0.44  $      1.76  $      1.76
                        ===========  ===========  ===========  ===========

Payout ratio of FFO
 (Distribution per
 Common Share divided
 by FFO per Share)             69.8%        75.9%        70.7%        72.1%

Payout ratio of FFO,
 excluding accelerated
 debt extinguishment
 costs (2)                     67.7%        71.0%        70.1%        71.3%

CASH AVAILABLE FOR
 DISTRIBUTION (CAD):
FFO, excluding
 accelerated debt
 extinguishment costs
 (2)                    $    60,355  $    36,024  $   236,276  $   143,716
Add (deduct):
  Rental income from
   straight-line rents       (9,133)      (4,137)     (32,618)     (14,593)
  Deferred market rental
   income                    (2,967)        (491)      (9,034)      (1,542)
  Amortization:
    Deferred financing
     costs                    2,545          394        4,607        1,845
    Deferred compensation
     costs                    1,115          692        3,448        2,765
  Second generation
   capital expenditures
   (3):
    Building improvements
     (4)                     (5,093)           -      (13,919)           -
    Tenant improvements     (11,012)      (7,975)     (33,969)     (33,075)
    Lease commissions        (2,924)        (785)      (9,889)      (3,534)
                        -----------  -----------  -----------  -----------
Cash available for
 distribution           $    32,886  $    23,722  $   144,902  $    95,582
                        ===========  ===========  ===========  ===========

Weighted-average
 shares/units
 outstanding - fully
 diluted                 93,361,536   58,302,750   94,222,124   58,111,162

Distributions per
 Common Share           $      0.44  $      0.44  $      1.76  $      1.76
                        ===========  ===========  ===========  ===========
Cash flows from:
  Operating activities  $    19,886  $    21,379  $   233,565  $   125,146
  Investing activities      145,249      (46,265)    (907,794)    (252,416)
  Financing activities     (156,295)       8,720      692,433      119,098

(1) Included in FFO for the year ending December 31, 2006 and the quarter
    ending September 30, 2006 is a $3.1 million gain on termination of a
    purchase contract. Included in FFO for the quarter and year ending
    December 31, 2006 is a $0.8 million gain on condemnation of a land
    parcel.

(2) 2006 FFO excludes the $1.4 million accelerated amortization of
    deferred financing costs in the 4th quarter of 2006 as a result of
    our early pay off of the 2009 floating rate notes in January 2007.
    2005 FFO excludes the $1.9 million accelerated amortization of
    deferred financing costs in the 4th Quarter of 2005 as  a result of
    terminating the existing line of credit upon entering into the amended
    and restated credit agreement on 12/22/05.

(3) Represents expenditures incurred during the period (regardless if
    lease commencement is after quarter end).  Excludes first generation
    costs, which consist of capital expenditures, tenant improvements and
    leasing commissions associated with development and purchase price
    adjustments relating to acquisitions (including seller escrows,
    purchase price reduction or costs anticipated to initially lease-up
    acquired properties).

(4) Building improvements and tenant improvements are combined for all
    periods prior to 3/31/06.



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


Of the 313 properties owned by the Company as of December 31, 2006, a total
of 238 properties ("Same Store Properties") containing an aggregate of 17.9
million net rentable square feet were owned for the entire three-month
periods ended December 31, 2006 and 2005. Average occupancy for the Same
Store Properties was 92.3% during 2006 and 91.0% during 2005. The following
table sets forth revenue and expense information for the Same Store
Properties:

                                                          Quarter Ended
                                                           December 31,
                                                        ------------------
                                                          2006      2005
                                                        --------  --------
Revenue
   Rents (a)                                            $ 79,529  $ 77,420
   Tenant reimbursements                                  14,585    13,683
   Other (b)                                               1,561       825
                                                        --------  --------
                                                          95,675    91,928
Operating expenses
   Property operating expenses                            29,600    29,331
   Real estate taxes                                       9,725     9,181
                                                        --------  --------
                                                          39,325    38,512
                                                        --------  --------
   Net operating income                                 $ 56,350  $ 53,416
                                                        ========  ========

   Net operating income percentage increase over prior
    year                                                     5.5%


Net operating income                                    $ 56,350  $ 53,416
      Straight line rents                                 (2,170)   (3,465)
      FAS 141 rents                                         (742)     (562)
                                                        --------  --------

   Cash - Net operating income                          $ 53,438  $ 49,389
                                                        ========  ========

   Cash - Net operating income percentage increase over
    prior year                                               8.2%

   (a) Incudes straight line rental income of $2,170 in 2006 and $3,465 in
       2005
   (b) Includes net termination fee income of $244 in 2006 and $469 in 2005


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

                                                          Quarter Ended
                                                           December 31,
                                                        ------------------
                                                          2006      2005
                                                        --------  --------
Net Income                                              $ 24,116  $  8,626
Add/(deduct):
   Interest income                                        (1,811)     (410)
   Interest expense                                       44,699    18,570
   Deferred financing costs                                2,545     2,316
   Equity in income of real estate ventures                 (367)     (874)
   Depreciation and amortization                          59,520    26,406
   Net gain on sale of undepreciated real estate         (11,582)        -
   Minority interest - partners' share of consolidated
    real estate ventures                                     290         -
   Minority interest attributable to continuing
    operations - LP units                                    318       143
   Income from discontinued operations                   (15,187)     (799)
                                                        --------  --------
      Consolidated net operating income                  102,541    53,978
Less:  Net operating income of non same store
 properties                                              (45,389)   (1,000)
Less:  Eliminations and non-property specific net
 operating income (loss)                                    (802)      438
                                                        --------  --------
      Same Store net operating income                   $ 56,350  $ 53,416
                                                        ========  ========



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


Of the 313 Properties owned by the Company as of December 31, 2006, a total
of 234 Properties ("Same Store Properties") containing an aggregate of 17.5
million net rentable square feet were owned for the entire twelve-month
periods ended December 31, 2006 and 2005. Average occupancy for the Same
Store Properties was 92.2% during 2006 and 91.1% during 2005. The following
table sets forth revenue and expense information for the Same Store
Properties:

                                                         Twelve Months
                                                       Ended December 31,
                                                      --------------------
                                                         2006       2005
                                                      ---------  ---------
Revenue
   Rents (a)                                          $ 308,160  $ 305,126
   Tenant reimbursements                                 48,086     46,705
   Other (b)                                              9,499      8,153
                                                      ---------  ---------
                                                        365,745    359,984
Operating expenses
   Property operating expenses                          114,455    112,656
   Real estate taxes                                     36,682     34,387
                                                      ---------  ---------
                                                        151,137    147,043
                                                      ---------  ---------
   Net operating income                               $ 214,608  $ 212,941
                                                      =========  =========

   Net operating income percentage increase over
    prior year                                              0.8%


Net operating income                                  $ 214,608  $ 212,941
      Straight line rents                                (8,636)   (11,141)
      FAS 141 rents                                      (2,713)    (1,546)
                                                      ---------  ---------

   Cash - Net operating income                        $ 203,259  $ 200,254
                                                      =========  =========

   Cash - Net operating income percentage increase
    over prior year                                         1.5%

   (a) Includes straight-line rental income of $8,636 in 2006 and $11,141
       in 2005
   (b) Includes net termination fee income of $6,133 in 2006 and $5,583 in
       2005


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

                                                         Twelve Months
                                                       Ended December 31,
                                                      --------------------
                                                         2006       2005
                                                      ---------  ---------
Net Income                                            $  10,482  $  42,767
Add/(deduct):
   Interest income                                       (9,513)    (1,370)
   Interest expense                                     171,177     70,152
   Deferred financing costs                               4,607      3,766
   Equity in income of real estate ventures              (2,165)    (3,172)
   Depreciation and amortization                        248,132    109,118
   Net gain on sale of undepreciated real estate        (14,190)    (4,640)
   Gain on termination of purchase contract              (3,147)         -
   Minority interest - partners' share of
    consolidated real estate ventures                      (270)         -
   Minority interest attributable to continuing
    operations - LP units                                (1,028)     1,237
   Income from discontinued operations                  (24,513)    (4,588)
                                                      ---------  ---------
      Consolidated net operating income                 379,572    213,270
Less:  Net operating income of non same store
 properties                                            (170,897)    (2,780)
Less:  Eliminations and non-property specific net
 operating income                                         5,933      2,451
                                                      ---------  ---------
      Same Store net operating income                 $ 214,608  $ 212,941
                                                      =========  =========

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