SOURCE: Brandywine Realty Trust

February 20, 2008 16:58 ET

Brandywine Realty Trust Announces Fourth Quarter and Full Year 2007 Earnings and Provides 2008 Earnings and FFO Guidance

RADNOR, PA--(Marketwire - February 20, 2008) - 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 twelve month periods ended December 31, 2007.

Financial Highlights

--  Funds from operations (FFO) totaled $53.5 million or $0.59 per diluted
    share in the fourth quarter of 2007, compared to $59.0 million or $0.63 per
    diluted share in the fourth quarter of 2006.  FFO in the fourth quarter of
    2007 included a $3.7 million non-cash charge ($0.04 per diluted share)
    related to the settlement of an expired hedging agreement.
    
--  Net income totaled $31.5 million or $0.36 per diluted share in the
    fourth quarter of 2007, compared to $22.1 million or $0.25 per diluted
    share in the fourth quarter of 2006.  Net income in the fourth quarter of
    2007 included a $40.5 million gain on the disposition of real estate
    related to the formation of our joint venture with DRA Advisors LLC and the
    $3.7 million hedge settlement expense, while net income in the fourth
    quarter of 2006 included an $11.6 million gain on the disposition of
    undepreciated real estate and a $15.1 million gain on the disposition of
    discontinued real estate.
    
--  Funds from operations totaled $233.0 million or $2.55 per diluted
    share in 2007, compared to $234.9 million or $2.49 per diluted share in
    2006.  FFO in 2007 included the $3.7 million ($0.04 per diluted share)
    hedge settlement expense.  Our FFO payout ratio (common stock dividend
    divided by FFO per share) for 2007 was 69.0% versus 70.7% in 2006.
    
--  Net income totaled $48.5 million or $0.55 per diluted share for 2007,
    compared to $2.5 million or $0.03 per diluted share for 2006.  Net income
    in 2007 included the $40.5 million gain on the disposition of real estate
    related to the formation of our joint venture with DRA Advisors, a $25.7
    million gain on the disposition of discontinued real estate and the $3.7
    million hedge settlement expense, while net income in 2006 included a $14.2
    million gain on the disposition of undepreciated real estate, a $20.2
    million gain on the disposition of discontinued real estate and a $3.1
    million gain on the settlement of a purchase contract.
    

Portfolio Highlights

--  At December 31, 2007, our core portfolio was 93.9% occupied and 94.7%
    leased (reflecting leases commencing after December 31, 2007) versus 91.5%
    and 93.2%, respectively, at December 31, 2006.  We owned 257 properties at
    December 31, 2007, encompassing 243 properties in our core portfolio and 14
    properties under development or redevelopment.
    
--  In 2007, our net operating income (NOI) for our same store portfolio
    increased 1.1% on a GAAP basis and 1.6% on a cash basis for the 225 same
    store properties which were 93.5% occupied on December 31, 2007 versus
    93.3% occupied on December 31, 2006.  Our overall NOI margin on a GAAP
    basis was 61.3% for 2007 versus 61.4% for 2006.
    
--  For all of 2007, our core portfolio retention rate was 72.8% with
    positive net absorption of 294,805 square feet.  In the fourth quarter of
    2007, we achieved a 6.6% increase on our renewal rental rates and a 2.7%
    increase on our new lease rental rates, both on a GAAP basis.
    

Investment Highlights

--  We acquired no properties in the fourth quarter of 2007.
    
--  During the fourth quarter of 2007, we sold two office properties,
    111/113 Pencader Drive in Newark, Delaware and 2490 Boulevard of the
    Generals in West Norriton, Pennsylvania, for $5.1 million and $1.5 million,
    respectively, and realized total gains on the sales of $0.3 million.  As
    previously disclosed on December 20, 2007, we also completed the sale and
    contribution of a portfolio of 29 suburban Philadelphia office properties
    to a joint venture consisting of DRA Advisors LLC with an 80% interest and
    affiliates of Brandywine Realty Trust with a 20% interest.  We sold the
    venture an 89% interest in three of the properties, and sold or contributed
    100% interests in the rest.  The overall portfolio was valued at $245.4
    million (reflecting 100% interests throughout).  In conjunction with the
    sale and contribution, we realized $230.9 million of net proceeds after
    deducting our transaction expenses, and recorded a gain on the sale and
    contribution of $40.5 million.
    
--  At December 31, 2007, we were actively proceeding on seven ground-up
    office developments and seven office redevelopments with a total identified
    cost of $718.3 million of which $442.6 million remained to be funded.
    These amounts include $375.0 million of costs for the combined 30th Street
    Post Office and garage development in Philadelphia, Pennsylvania of which
    $331.9 million remained to be funded at December 31, 2007, for the most
    part in 2009 and 2010.  Since September 30, 2007, we have signed a series
    of new leases aggregating 301,487 square feet, bringing the total leasing
    rate to 57.5% for our seven ground-up developments and to 69.4% for our
    seven redevelopments.
    

Capital Markets Highlights

--  During the fourth quarter of 2007, we closed and funded a $150.0
    million, three-year unsecured term loan with a floating rate of LIBOR plus
    80 basis points.  The net proceeds were used to reduce indebtedness under
    our unsecured revolving credit facilities.
    
--  At December 31, 2007, our net debt to gross assets measured 53.6%
    compared to 52.0% at December 31, 2006 and 54.3% at September 30, 2007.  At
    December 31, 2007, we had $475.7 million available for use and drawdown
    under our various credit facilities.
    
--  We achieved 2.5 times interest coverage ratio for the year ended
    December 31, 2007 versus 2.4 for the year ended December 31, 2006.
    

"Throughout the year, we have maintained consistently high levels of occupancy, retention and absorption in our core portfolio, while continuing to reduce the capital outlays to achieve these results," stated Gerard H. Sweeney, President and CEO of Brandywine Realty Trust. "Our joint venture with DRA Advisors has established a good, alternative source of capital and we hope to increase our activities in this area as part of our overall capital recycling and balance sheet strengthening initiatives. We have also had some recent success in the lease-up of our development and redevelopment projects and will continue to push hard on that front. Our 2008 business and capital plans reflect a somewhat more cautious view on the economy, yet reinforce our commitment to maximizing total shareholder return. On a personal note, I want to thank Mike Prentiss and Tom August, our departing board trustees, for their fine service and contributions to Brandywine and wish them well in their future endeavors."

Distributions

On December 11, 2007, our Board of Trustees declared a quarterly dividend distribution of $0.44 per common share that was paid on January 18, 2008 to shareholders of record as of January 4, 2008. 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 January 15, 2008 to holders of record as of December 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 did not purchase any shares in the fourth quarter of 2007 or to date in 2008 and may discontinue the program at any time.

2008 Earnings and 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 introducing FFO guidance for full year 2008 to be in a range of $2.46 to $2.56 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 2008                                    Range or Value
     -----------------                                    --------------

     Earnings per diluted share allocated to common
      shareholders                                      $ 0.06  to  $ 0.16
     Plus: real estate depreciation and amortization      2.40        2.40
                                                          ----        ----
     FFO per diluted share                              $ 2.46  to  $ 2.56
                                                        ======      ======

Key assumptions in our guidance range include same store NOI growth (GAAP) of 0.5%-1.0% incorporating a 100 basis point increase in occupancy by year-end 2008, flat to slightly higher operating expenses/real estate taxes, a 3.0%-5.0% mark-to-market on our new lease rental rates and a 3.0%-4.5% mark-to-market on our renewal rental rates. We are assuming general and administrative expenses of $25.0-$27.0 million and interest expenses (net of capitalized interest for development activity) and deferred financing fees of $153.0-$160.0 million. For 2008, we are projecting approximately $2.5-$3.0 million of incremental NOI from five key ground-up developments -- South Lake, 2100 Franklin, Barton Creek, Metroplex I and 1200 Lenox Drive -- and are targeting year-end occupancy for this group to be in a range of 30.0%-35.0%. For other income categories including termination fees, management income, interest income, income from joint ventures and certain other items, we are targeting a range of $30.0-$38.0 million compared to $49.0 million in 2007. Lastly, our 2008 projections reflect aggregate sale activity of $155.0-$162.0 million at a 7.5%-8.0% capitalization rate, no acquisitions, no new development starts and no stock buyback activity.

For guidance purposes, we have not considered any future gains from the sale of real estate not previously disclosed. Our 2008 FFO guidance does not include any income from the sale of undepreciated real estate, in accordance with our current 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.

Fourth Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, February 21, 2008 at 11:00 a.m. EST. The conference call can be accessed by calling 1-800-683-1525 and referencing conference ID #30236098. Beginning two hours after the conference call, a taped replay of the call can be accessed 24 hours a day through Thursday, March 6, 2008 by calling 1-800-642-1687 and providing access code 30236098. 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 fourth 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 - First Quarter 2008 Conference Call

We anticipate that we will release our first quarter 2008 earnings on Wednesday, April 30, 2008, after the market close and will host our first quarter 2008 conference call on Thursday, May 1, 2008, 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 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 42 million square feet, including 29 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)

                                                December 31,  December 31,
                                                    2007          2006
                                                ------------  ------------

ASSETS
Real estate investments:
  Operating properties                          $  4,813,563  $  4,927,305
  Accumulated depreciation                          (558,908)     (515,698)
                                                ------------  ------------
                                                   4,254,655     4,411,607
  Development land and construction-in-progress      402,270       328,119
                                                ------------  ------------
                                                   4,656,925     4,739,726

Cash and cash equivalents                              5,600        25,379
Accounts receivable, net                              17,057        19,957
Accrued rent receivable, net                          83,098        71,589
Assets held for sale, net                                  -       126,016
Investment in real estate ventures                    71,598        74,574
Deferred costs, net                                   87,123        73,708
Intangible assets, net                               218,149       281,251
Other assets                                          74,549        96,818
                                                ------------  ------------

  Total assets                                  $  5,214,099  $  5,509,018
                                                ============  ============

LIABILITIES AND BENEFICIARIES' EQUITY
Mortgage notes payable, including premiums      $    611,898  $    883,920
Unsecured term loan                                  150,000             -
Borrowings under credit facilities                   130,727        60,000
Unsecured senior notes, net of discounts           2,208,344     2,208,310
Accounts payable and accrued expenses                 80,732       108,400
Distributions payable                                 42,368        42,760
Tenant security deposits and deferred rents           65,241        55,697
Acquired lease intangibles, net                       67,281        92,527
Other liabilities                                     30,154        14,661
Mortgage note payable and other liabilities
 held for sale, net                                        -        20,826
                                                ------------  ------------
  Total liabilities                                3,386,745     3,487,101

Minority interest                                     84,119       123,991

Beneficiaries' equity:
  Preferred shares - Series C                             20            20
  Preferred shares - Series D                             23            23
  Common shares                                          870           883
  Additional paid-in capital                       2,319,412     2,311,541
  Common shares in treasury                          (53,449)            -
  Cumulative earnings                                480,215       423,764
  Accumulated other comprehensive (loss) income       (1,885)        1,576
  Cumulative distributions                        (1,001,971)     (839,881)
                                                ------------  ------------
    Total beneficiaries' equity                    1,743,235     1,897,926
                                                ------------  ------------

    Total liabilities and beneficiaries' equity $  5,214,099  $  5,509,018
                                                ============  ============




                         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,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
Revenue
  Rents                     $  144,275  $  134,799  $  562,514  $  519,282
  Tenant reimbursements         22,255      24,138      85,404      78,817
  Termination fees                 760         712      10,236       7,231
  Third party management
   fees, labor reimbursement
   and leasing                   5,572       4,268      19,691      19,453
  Other                          1,296       1,988       6,127       5,502
                            ----------  ----------  ----------  ----------
    Total revenue              174,158     165,905     683,972     630,285

Operating Expenses
  Property operating
   expenses                     49,264      43,340     189,130     171,924
  Real estate taxes             16,655      16,540      64,895      60,808
  Management expenses            2,862       2,203      10,361      10,675
  Depreciation and
   amortization                 60,648      55,179     242,312     230,710
  General & administrative
   expenses                      6,468       6,940      28,182      29,644
                            ----------  ----------  ----------  ----------
    Total operating expenses   135,897     124,202     534,880     503,761
                            ----------  ----------  ----------  ----------

Operating income                38,261      41,703     149,092     126,524
Other income (expense)
  Interest income                  590       1,811       4,040       9,513
  Interest expense             (40,646)    (44,698)   (162,675)   (171,177)
  Deferred financing costs      (1,115)     (2,545)     (4,496)     (4,607)
  Loss on settlement of
   treasury lock agreements     (3,698)          -      (3,698)          -
  Equity in income of real
   estate ventures                 934         367       6,955       2,165
  Net gain on disposition
   of depreciated real
   estate                       40,498           -      40,498           -
  Net gain on disposition
   of undepreciated real
   estate                            -      11,582         421      14,190
  Gain on termination of
   purchase contract                 -           -           -       3,147
                            ----------  ----------  ----------  ----------
Income (loss) before
 minority interest and
 discontinued operations        34,824       8,220      30,137     (20,245)
Minority interest -
 partners' share of
 consolidated real estate
 ventures                         (362)       (290)       (465)        270
Minority interest
 attributable to continuing
 operations - LP units          (1,372)       (259)       (911)      1,246
                            ----------  ----------  ----------  ----------

Income (loss) from
 continuing operations          33,090       7,671      28,761     (18,729)

Discontinued operations:
  Income from discontinued
   operations                      187       2,166       3,184      12,597
  Net gain on disposition
   of discontinued
   operations                      252      15,055      25,743      20,243
  Minority interest -
   partners' share of
   consolidated real estate
   venture                           -           -           -      (2,239)
  Minority interest
   attributable to
   discontinued operations
   - LP units                      (19)       (776)     (1,235)     (1,390)
                            ----------  ----------  ----------  ----------
                                   420      16,445      27,692      29,211
                            ----------  ----------  ----------  ----------

Net income (loss)               33,510      24,116      56,453      10,482

Income allocated to
 Preferred Shares               (1,998)     (1,998)     (7,992)     (7,992)
                            ----------  ----------  ----------  ----------
Income (loss) allocated to
 Common Shares              $   31,512  $   22,118  $   48,461  $    2,490
                            ==========  ==========  ==========  ==========

PER SHARE DATA
Basic income (loss) per
 Common Share               $     0.36  $     0.25  $     0.56  $     0.03
                            ==========  ==========  ==========  ==========

Basic weighted-average
 shares outstanding         86,843,035  88,331,988  87,272,148  89,552,301

Diluted income (loss) per
 Common Share               $     0.36  $     0.25  $     0.55  $     0.03
                            ==========  ==========  ==========  ==========

Diluted weighted-average
 shares outstanding         87,039,547  89,186,374  87,321,276  90,070,825




                          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,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------  ----------  ----------
Reconciliation of Net
 Income to Funds from
 Operations (FFO):
Net income (loss) allocated
 to common shares           $   31,512  $   22,118  $   48,461  $    2,490

Add (deduct):
   Minority interest
    attributable to
    continuing operations -
    LP units                     1,372         259         911      (1,246)
   Net gains on sale of
    depreciated real estate    (40,498)          -     (40,498)          -
   Net gains on sale of
    undepreciated real
    estate                           -     (11,582)       (421)    (14,190)
   Minority interest
    attributable to
    discontinued operations
    - LP units                      19         776       1,235       1,390
   Net loss (gain) on
    disposition of
    discontinued operations       (252)    (15,055)    (25,743)    (20,243)
   Minority interest -
    partners' share of net
    gain on sale                     -           -           -       1,757
                            ----------  ----------  ----------  ----------

Loss before net gains on
 sale of interests in real
 estate and minority
 interest                       (7,847)     (3,484)    (16,055)    (30,042)

Add:
   Depreciation and
    amortization:
      Real property -
       continuing
       operations               43,693      38,051     174,245     165,477
      Leasing costs
       (includes acquired
       intangibles) -
       continuing
       operations               16,306      16,813      65,489      64,385
      Real property -
       discontinued
       operations                   27       4,505       2,769      20,322
      Leasing costs
       (includes acquired
       intangibles) -
       discontinued
       operations                    1       2,912       1,979      14,385
      Company's share of
       unconsolidated real
       estate ventures           1,495       1,722       6,197       6,740
      Partners' share of
       consolidated real
       estate ventures            (223)     (1,554)     (1,578)     (6,381)
                            ----------  ----------  ----------  ----------
Funds from operations       $   53,452  $   58,965  $  233,046  $  234,886
                            ==========  ==========  ==========  ==========
FFO per share - fully
 diluted                    $     0.59  $     0.63  $     2.55  $     2.49
                            ==========  ==========  ==========  ==========
Weighted-average
 shares/units outstanding -
 fully diluted              90,879,389  93,361,536  91,532,534  94,419,070
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)                           74.6%       69.8%       69.0%       70.7%

CASH AVAILABLE FOR
 DISTRIBUTION (CAD):
Funds from operations       $   53,452  $   58,965  $  233,046  $  234,886

Add (deduct):
   Rental income from
    straight-line rent          (8,043)     (9,133)    (28,304)    (32,618)
   Deferred market rental
    income                      (2,914)     (2,967)    (12,226)     (9,034)
   Operating expense from
    straight-line rent             383         291       1,523         291
   Net gains on sale of
    undepreciated real
    estate                           -      11,582         421      14,190
   Loss on settlement of
    treasury lock
    agreements                   3,698           -           -           -
   Revenue maintaining
    capital expenditures
        Building
         improvements           (1,751)     (3,114)     (7,075)     (9,861)
        Tenant improvements     (9,496)    (10,874)    (42,277)    (32,299)
        Lease commissions       (2,382)     (2,852)    (11,442)     (9,069)
                            ----------  ----------  ----------  ----------
   Total revenue
    maintaining capital
    expenditures               (13,629)    (16,840)    (60,794)    (51,229)

Cash available for
 distribution               $   32,947  $   41,898  $  133,666  $  156,486
                            ==========  ==========  ==========  ==========
CAD per share - fully
 diluted                    $     0.36  $     0.45  $     1.46  $     1.66
                            ==========  ==========  ==========  ==========
Weighted-average
 shares/units outstanding
  - fully diluted           90,879,389  93,361,536  91,532,534  94,419,070
Distributions per Common
 Share                      $     0.44  $     0.44  $     1.76  $     1.76
                            ==========  ==========  ==========  ==========
Payout ratio of CAD
 (Distribution per Common
 Share divided by CAD per
 Share)                          122.2%       97.8%      120.5%      106.0%




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

Of the 257 properties owned by the Company as of December 31, 2007,
a total of 225 properties ("Same Store Properties") containing an
aggregate of 21.9 million net rentable square feet were owned for the
entire twelve month periods ended December 31, 2007 and 2006. Average
occupancy for the Same Store Properties was 93.4% during 2007 and 92.8%
during 2006. The following table sets forth revenue and expense
information for the Same Store Properties:

                                                   Twelve-months ended
                                                       December 31,
                                                   --------------------
                                                     2007      2006(a)
                                                   ---------  ---------
Revenue
   Rents                                           $ 444,078  $ 439,972
   Tenant reimbursements                              72,521     69,378
   Termination fees                                    9,137      6,625
   Other                                               2,488      2,815
                                                   ---------  ---------
                                                     528,224    518,790
Operating expenses
   Property operating expenses                       159,265    154,340
   Real estate taxes                                  52,227     51,311
                                                   ---------  ---------
   Net operating income                            $ 316,732  $ 313,139
                                                   =========  =========

                                                   =========
   Net operating income percentage increase over
    prior year                                           1.1%
                                                   =========


Net operating income                               $ 316,732  $ 313,139
         Straight line rents                         (12,808)   (15,214)
         FAS 141 rents                                (8,561)    (7,331)
                                                   ---------  ---------

   Cash - Net operating income                     $ 295,363  $ 290,594
                                                   =========  =========

                                                   =========
   Cash - Net operating income percentage increase
    over prior year                                      1.6%
                                                   =========


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

                                                    Twelve-months ended
                                                        December 31,
                                                   --------------------
                                                      2007       2006
                                                   ---------  ---------
Net Income                                         $  56,453  $  10,482
Add/(deduct):
   Interest income                                    (4,040)    (9,513)
   Interest expense                                  162,675    171,177
   Deferred financing costs                            4,496      4,607
   Loss on settlement of treasury lock agreements      3,698          -
   Equity in income of real estate ventures           (6,955)    (2,165)
   Depreciation and amortization                     242,312    230,710
   Net gain on sale of depreciated real estate       (40,498)         -
   Net gain on sale of undepreciated real estate        (421)   (14,190)
   Gain on termination of purchase contract                -     (3,147)
   General & administrative expenses                  28,182     29,644
   Minority interest - partners' share of
    consolidated real estate ventures                    465       (270)
   Minority interest attributable to continuing
    operations - LP units                                911     (1,246)
   Income from discontinued operations               (27,692)   (29,211)
                                                   ---------  ---------

     Consolidated net operating income               419,586    386,878
Less:  Net operating income of non same store
 properties                                          (65,286)   (36,518)
Less:  Eliminations and non-property specific net
 operating income (loss)                             (37,568)   (37,221)(a)
                                                   ---------  ---------

    Same Store net operating income                $ 316,732  $ 313,139
                                                   =========  =========


(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 twelve-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.




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



Of the 257 properties owned by the Company as of December 31, 2007, a
total of 228 properties ("Same Store Properties") containing an aggregate
of 22.5 million net rentable square feet were owned for the entire three
month periods ended December 31, 2007 and 2006. Average occupancy for the
Same Store Properties was 93.8% during 2007 and 93.2% during 2006. The
following table sets forth revenue and expense information for the Same
Store Properties:

                                                       Three-months ended
                                                          December 31,
                                                      --------------------
                                                        2007       2006
                                                      ---------  ---------
Revenue
   Rents                                              $ 115,745  $ 114,581
   Tenant reimbursements                                 18,360     21,628
   Termination fees                                         629        369
   Other                                                    442        659
                                                      ---------  ---------
                                                        135,176    137,237

Operating expenses
   Property operating expenses                           40,571     40,424
   Real estate taxes                                     13,713     14,478
                                                      ---------  ---------
   Net operating income                               $  80,892  $  82,335
                                                      =========  =========

                                                      =========
   Net operating income percentage increase over
    prior year                                             -1.8%
                                                      =========


Net operating income                                  $  80,892  $  82,335
         Straight line rents                             (4,316)    (3,657)
         FAS 141 rents                                   (2,441)    (2,664)
                                                      ---------  ---------

   Cash - Net operating income                        $  74,135  $  76,014
                                                      =========  =========

                                                      =========
   Cash - Net operating income percentage increase
    over prior year                                        -2.5%
                                                      =========


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

                                                        Three-months ended
                                                           December 31,
                                                      --------------------
                                                         2007       2006
                                                      ---------  ---------

Net Income                                            $  33,510  $  24,116
Add/(deduct):
   Interest income                                         (590)    (1,811)
   Interest expense                                      40,646     44,698
   Deferred financing costs                               1,115      2,545
   Loss on settlement of treasury lock agreements         3,698          -
   Equity in income of real estate ventures                (934)      (367)
   Depreciation and amortization                         60,648     55,179
   Net gain on sale of depreciated real estate          (40,498)         -
   Net gain on sale of undepreciated real estate              -    (11,582)
   General & administrative expenses                      6,468      6,940
   Minority interest - partners' share of
    consolidated real estate ventures                       362        290
   Minority interest attributable to continuing
    operations - LP units                                 1,372        259
   Income from discontinued operations                     (420)   (16,445)
                                                      ---------  ---------

     Consolidated net operating income                  105,377    103,822
Less:  Net operating income of non same store
 properties                                             (15,493)    (9,302)
Less:  Eliminations and non-property specific net
 operating income (loss)                                 (8,992)   (12,185)
                                                      ---------  ---------

    Same Store net operating income                   $  80,892  $  82,335
                                                      =========  =========

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