bdn-10q_20170331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2017

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission file number

001-9106 (Brandywine Realty Trust)

000-24407 (Brandywine Operating Partnership, L.P.)

 

Brandywine Realty Trust

Brandywine Operating Partnership, L.P.

(Exact name of registrant as specified in its charter)

 

 

MARYLAND (Brandywine Realty Trust)

 

23-2413352

DELAWARE (Brandywine Operating Partnership L.P.)

 

23-2862640

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

555 East Lancaster Avenue

 

 

Radnor, Pennsylvania

 

19087

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code (610) 325-5600

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Brandywine Realty Trust

 

Yes   No 

Brandywine Operating Partnership, L.P.

 

Yes   No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

Brandywine Realty Trust

 

Yes   No

Brandywine Operating Partnership, L.P.

 

Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Brandywine Realty Trust:

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

 

 

Brandywine Operating Partnership, L.P.:

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

Brandywine Realty Trust

 

Yes   No 

 


 

Brandywine Operating Partnership, L.P.

 

Yes   No 

A total of 175,327,436 Common Shares of Beneficial Interest, par value $0.01 per share of Brandywine Realty Trust, were outstanding as of April 21, 2017.

 

 

 

 

 


EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2017 of Brandywine Realty Trust (the “Parent Company”) and Brandywine Operating Partnership L.P. (the “Operating Partnership”). The Parent Company is a Maryland real estate investment trust, or REIT, that owns its assets and conducts its operations through the Operating Partnership, a Delaware limited partnership, and subsidiaries of the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company”. In addition, as used in this report, terms such as “we”, “us”, and “our” may refer to the Company, the Parent Company, or the Operating Partnership.

The Parent Company is the sole general partner of the Operating Partnership and, as of March 31, 2017, owned a 99.2% interest in the Operating Partnership. The remaining 0.8% interest consists of common units of limited partnership interest issued by the Operating Partnership to third parties in exchange for contributions of properties to the Operating Partnership. As the sole general partner of the Operating Partnership, the Parent Company has full and complete authority over the Operating Partnership’s day-to-day operations and management.

Management operates the Parent Company and the Operating Partnership as one enterprise. The management of the Parent Company consists of the same members as the management of the Operating Partnership.

As general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Parent Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company's operations on a consolidated basis and how management operates the Company.

The Company believes that combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into a single report will result in the following benefits:

 

facilitate a better understanding by the investors of the Parent Company and the Operating Partnership by enabling them to view the business as a whole in the same manner as management views and operates the business;

 

remove duplicative disclosures and provide a more straightforward presentation in light of the fact that a substantial portion of the disclosure applies to both the Parent Company and the Operating Partnership; and

 

create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

There are few differences between the Parent Company and the Operating Partnership, which are reflected in the footnote disclosures in this report. The Company believes it is important to understand the differences between the Parent Company and the Operating Partnership in the context of how these entities operate as an interrelated consolidated company. The Parent Company is a REIT, whose only material asset is its ownership of partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing equity from time to time and guaranteeing the debt obligations of the Operating Partnership. The Operating Partnership holds substantially all the assets of the Company and directly or indirectly holds the ownership interests in the Company’s Real Estate Ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s incurrence of indebtedness (directly and through subsidiaries) and through the issuance of partnership units of the Operating Partnership or equity interests in subsidiaries of the Operating Partnership.

The equity and non-controlling interests in the Parent Company and the Operating Partnership’s equity are the main areas of difference between the consolidated financial statements of the Parent Company and the Operating Partnership. The common units of limited partnership interest in the Operating Partnership are accounted for as partners’ equity in the Operating Partnership’s financial statements while the common units of limited partnership interests held by parties other than the Parent Company are presented as non-controlling interests in the Parent Company’s financial statements. The differences between the Parent Company and the Operating Partnership’s equity relate to the differences in the equity issued at the Parent Company and Operating Partnership levels.

3


To help investors understand the significant differences between the Parent Company and the Operating Partnership, this report presents the following as separate notes or sections for each of the Parent Company and the Operating Partnership:

 

Consolidated Financial Statements; and

 

Notes to the Parent Company’s and Operating Partnership’s Equity.

This report also includes separate Item 4. (Controls and Procedures) disclosures and separate Exhibit 31 and 32 certifications for each of the Parent Company and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that the Parent Company and Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. § 1350.

In order to highlight the differences between the Parent Company and the Operating Partnership, the separate sections in this report for the Parent Company and the Operating Partnership specifically refer to the Parent Company and the Operating Partnership. In the sections that combine disclosures of the Parent Company and the Operating Partnership, this report refers to such disclosures as those of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and real estate ventures and holds assets and incurs debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.

 

4


TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I — FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Financial Statements

 

 

 

 

 

Brandywine Realty Trust

 

 

 

 

 

Financial Statements of Brandywine Realty Trust

 

6

 

 

 

Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016

 

6

 

 

 

Consolidated Statements of Operations for the three-month periods ended March 31, 2017 and 2016

 

7

 

 

 

Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2017 and 2016

 

8

 

 

 

Consolidated Statements of Beneficiaries’ Equity for the three-month periods ended March 31, 2017 and 2016

 

9

 

 

 

Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2017 and 2016

 

11

 

 

 

Brandywine Operating Partnership, L.P.

 

 

 

 

 

Financial Statements of Brandywine Operating Partnership, L.P.

 

12

 

 

 

Consolidated Balance Sheets as of March 31, 2017 and December 31, 2016

 

12

 

 

 

Consolidated Statements of Operations for the three-month periods ended March 31, 2017 and 2016

 

13

 

 

 

Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2017 and 2016

 

14

 

 

 

Consolidated Statements of Partners’ Equity for the three-month periods ended March 31, 2017 and 2016

 

15

 

 

 

Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2017 and 2016

 

17

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

18

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

35

 

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

52

 

 

 

Item 4. Controls and Procedures

 

53

 

 

 

PART II — OTHER INFORMATION

 

54

 

 

 

Item 1. Legal Proceedings

 

54

 

 

 

Item 1A. Risk Factors

 

54

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

54

 

 

 

Item 3. Defaults Upon Senior Securities

 

54

 

 

 

Item 4. Mine Safety Disclosures

 

54

 

 

 

Item 5. Other Information

 

54

 

 

 

Item 6. Exhibits

 

55

 

 

 

Signatures

 

57

 

 

 

Index to Exhibits

 

59

Filing Format

This combined Form 10-Q is being filed separately by Brandywine Realty Trust and Brandywine Operating Partnership, L.P.

 

5


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

BRANDYWINE REALTY TRUST

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)

 

 

 

March 31,

 

 

December 31,

 

 

 

2017

 

 

2016

 

ASSETS

 

(unaudited)

 

 

 

 

 

Real estate investments:

 

 

 

 

 

 

 

 

Operating properties

 

$

3,702,204

 

 

$

3,586,295

 

Accumulated depreciation

 

 

(864,196

)

 

 

(852,476

)

Operating real estate investments, net

 

 

2,838,008

 

 

 

2,733,819

 

Construction-in-progress

 

 

166,372

 

 

 

297,462

 

Land held for development

 

 

153,268

 

 

 

150,970

 

Total real estate investments, net

 

 

3,157,648

 

 

 

3,182,251

 

Assets held for sale, net

 

 

6,262

 

 

 

41,718

 

Cash and cash equivalents

 

 

234,654

 

 

 

193,919

 

Accounts receivable, net of allowance of $2,622 and $2,373 in 2017 and 2016, respectively

 

 

12,099

 

 

 

12,446

 

Accrued rent receivable, net of allowance of $13,703 and $13,743 in 2017 and 2016, respectively

 

 

152,819

 

 

 

149,624

 

Investment in Real Estate Ventures, equity method

 

 

264,941

 

 

 

281,331

 

Deferred costs, net

 

 

92,425

 

 

 

91,342

 

Intangible assets, net

 

 

64,222

 

 

 

72,478

 

Other assets

 

 

116,792

 

 

 

74,104

 

Total assets

 

$

4,101,862

 

 

$

4,099,213

 

LIABILITIES AND BENEFICIARIES' EQUITY

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

320,484

 

 

$

321,549

 

Unsecured term loans, net

 

 

248,181

 

 

 

248,099

 

Unsecured senior notes, net

 

 

1,444,006

 

 

 

1,443,464

 

Accounts payable and accrued expenses

 

 

115,079

 

 

 

103,404

 

Distributions payable

 

 

30,047

 

 

 

30,032

 

Deferred income, gains and rent

 

 

30,592

 

 

 

31,620

 

Acquired lease intangibles, net

 

 

16,604

 

 

 

18,119

 

Liabilities related to assets held for sale

 

 

387

 

 

 

81

 

Other liabilities

 

 

16,916

 

 

 

19,408

 

Total liabilities

 

$

2,222,296

 

 

$

2,215,776

 

Commitments and contingencies (See Note 14)

 

 

 

 

 

 

 

 

Brandywine Realty Trust's Equity:

 

 

 

 

 

 

 

 

Preferred Shares (shares authorized-20,000,000)

 

 

 

 

 

 

 

 

6.90% Series E Preferred Shares, $0.01 par value; issued and outstanding- 4,000,000 in 2017 and 2016

 

 

40

 

 

 

40

 

Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 175,202,404 and 175,140,760 issued and outstanding in 2017 and 2016, respectively

 

 

1,752

 

 

 

1,752

 

Additional paid-in-capital

 

 

3,262,459

 

 

 

3,258,870

 

Deferred compensation payable in common shares

 

 

14,244

 

 

 

13,684

 

Common shares in grantor trust, 936,939 in 2017, 899,457 in 2016

 

 

(14,244

)

 

 

(13,684

)

Cumulative earnings

 

 

560,422

 

 

 

539,319

 

Accumulated other comprehensive loss

 

 

(457

)

 

 

(1,745

)

Cumulative distributions

 

 

(1,961,739

)

 

 

(1,931,892

)

Total Brandywine Realty Trust's equity

 

 

1,862,477

 

 

 

1,866,344

 

Non-controlling interests

 

 

17,089

 

 

 

17,093

 

Total beneficiaries' equity

 

$

1,879,566

 

 

$

1,883,437

 

Total liabilities and beneficiaries' equity

 

$

4,101,862

 

 

$

4,099,213

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

6


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in thousands, except share and per share information)

 

 

Three-month periods ended

 

 

March 31,

 

 

2017

 

 

2016

 

Revenue

 

 

 

 

 

 

 

Rents

$

103,332

 

 

$

110,163

 

Tenant reimbursements

 

18,535

 

 

 

20,054

 

Termination fees

 

1,673

 

 

 

294

 

Third party management fees, labor reimbursement and leasing

 

6,485

 

 

 

5,235

 

Other

 

895

 

 

 

756

 

Total revenue

 

130,920

 

 

 

136,502

 

Operating expenses

 

 

 

 

 

 

 

Property operating expenses

 

36,885

 

 

 

40,879

 

Real estate taxes

 

11,749

 

 

 

11,886

 

Third party management expenses

 

2,447

 

 

 

2,010

 

Depreciation and amortization

 

45,892

 

 

 

48,873

 

General and administrative expenses

 

9,425

 

 

 

9,120

 

Provision for impairment

 

2,730

 

 

 

7,390

 

Total operating expenses

 

109,128

 

 

 

120,158

 

Operating income

 

21,792

 

 

 

16,344

 

Other income (expense)

 

 

 

 

 

 

 

Interest income

 

393

 

 

 

320

 

Interest expense

 

(21,437

)

 

 

(23,691

)

Interest expense - amortization of deferred financing costs

 

(634

)

 

 

(774

)

Interest expense - financing obligation

 

-

 

 

 

(281

)

Equity in loss of Real Estate Ventures

 

(748

)

 

 

(403

)

Net gain on disposition of real estate

 

7,323

 

 

 

115,456

 

Net gain on Real Estate Venture transactions

 

14,582

 

 

 

5,929

 

Loss on early extinguishment of debt

 

-

 

 

 

(66,590

)

Net income

 

21,271

 

 

 

46,310

 

Net income attributable to non-controlling interests

 

(169

)

 

 

(389

)

Net income attributable to Brandywine Realty Trust

 

21,102

 

 

 

45,921

 

Distribution to preferred shareholders

 

(1,725

)

 

 

(1,725

)

Nonforfeitable dividends allocated to unvested restricted shareholders

 

(99

)

 

 

(105

)

Net income attributable to Common Shareholders of Brandywine Realty Trust

$

19,278

 

 

$

44,091

 

 

 

 

 

 

 

 

 

Basic income per Common Share:

 

 

 

 

 

 

 

Continuing operations

$

0.11

 

 

$

0.25

 

 

 

 

 

 

 

 

 

Diluted income per Common Share:

 

 

 

 

 

 

 

Continuing operations

$

0.11

 

 

$

0.25

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

175,176,964

 

 

 

174,788,945

 

Diluted weighted average shares outstanding

 

176,201,872

 

 

 

175,471,413

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share

$

0.16

 

 

$

0.15

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

7


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

 

 

Three-month periods ended

 

 

March 31,

 

 

2017

 

 

2016

 

Net income

$

21,271

 

 

$

46,310

 

Comprehensive income:

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative financial instruments

 

1,014

 

 

 

(9,405

)

Reclassification of realized losses on derivative financial instruments to operations, net (1)

 

286

 

 

 

246

 

Total comprehensive income (loss)

 

1,300

 

 

 

(9,159

)

Comprehensive income

 

22,571

 

 

 

37,151

 

Comprehensive income attributable to non-controlling interest

 

(181

)

 

 

(309

)

Comprehensive income attributable to Brandywine Realty Trust

$

22,390

 

 

$

36,842

 

 

(1)

Amounts reclassified from comprehensive income to interest expense within the Consolidated Statements of Operations.

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

8


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY

For the three-month period ended March 31, 2017

(unaudited, in thousands, except number of shares)

 

March 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Preferred Shares

 

 

Par Value of Preferred Shares

 

 

Number of Common Shares

 

 

Number of Rabbi Trust/Deferred Compensation Shares

 

 

Common Shares of Brandywine Realty Trust's beneficial interest

 

 

Additional Paid-in Capital

 

 

Deferred Compensation Payable in Common Shares

 

 

Common Shares in Grantor Trust

 

 

Cumulative Earnings

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Cumulative Distributions

 

 

Non-Controlling Interests

 

 

Total

 

BALANCE, December 31, 2016

 

4,000,000

 

 

$

40

 

 

 

175,140,760

 

 

 

899,457

 

 

$

1,752

 

 

$

3,258,870

 

 

$

13,684

 

 

$

(13,684

)

 

$

539,319

 

 

$

(1,745

)

 

$

(1,931,892

)

 

$

17,093

 

 

$

1,883,437

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21,102

 

 

 

 

 

 

 

 

 

 

 

169

 

 

 

21,271

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,288

 

 

 

 

 

 

 

12

 

 

 

1,300

 

Issuance of partnership interest in consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

29

 

Equity issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(219

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(219

)

Bonus share issuance

 

 

 

 

 

 

 

 

 

6,752

 

 

 

 

 

 

 

 

 

 

 

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

110

 

Share-based compensation activity

 

 

 

 

 

 

 

 

 

56,669

 

 

 

39,870

 

 

 

 

 

 

 

3,769

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,770

 

Share Issuance from/(to) Deferred Compensation Plan

 

 

 

 

 

 

 

 

 

(354

)

 

 

(2,388

)

 

 

 

 

 

 

(48

)

 

 

560

 

 

 

(560

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48

)

Share Choice Plan issuance

 

 

 

 

 

 

 

 

 

(1,423

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Adjustment to Non-controlling Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

 

 

 

-

 

Preferred Share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,725

)

 

 

 

 

 

 

(1,725

)

Distributions declared ($0.16 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28,122

)

 

 

(237

)

 

 

(28,359

)

BALANCE, March 31, 2017

 

4,000,000

 

 

$

40

 

 

 

175,202,404

 

 

 

936,939

 

 

$

1,752

 

 

$

3,262,459

 

 

$

14,244

 

 

$

(14,244

)

 

$

560,422

 

 

$

(457

)

 

$

(1,961,739

)

 

$

17,089

 

 

$

1,879,566

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

9


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENT OF BENEFICIARIES’ EQUITY

For the three-month period ended March 31, 2016

(unaudited, in thousands, except number of shares)

 

March 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Preferred Shares

 

 

Par Value of Preferred Shares

 

 

Number of Common Shares

 

 

Number of Rabbi Trust/Deferred Compensation Shares

 

 

Common Shares of Brandywine Realty Trust's beneficial interest

 

 

Additional Paid-in Capital

 

 

Deferred Compensation Payable in Common Shares

 

 

Common Shares in Grantor Trust

 

 

Cumulative Earnings

 

 

Accumulated Other Comprehensive Loss

 

 

Cumulative Distributions

 

 

Non-Controlling Interests

 

 

Total

 

BALANCE, December 31, 2015

 

4,000,000

 

 

$

40

 

 

 

174,688,568

 

 

 

745,686

 

 

$

1,747

 

 

$

3,252,622

 

 

$

11,918

 

 

$

(11,918

)

 

$

499,086

 

 

$

(5,192

)

 

$

(1,814,378

)

 

$

18,166

 

 

$

1,952,091

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45,921

 

 

 

 

 

 

 

 

 

 

 

389

 

 

 

46,310

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,079

)

 

 

 

 

 

 

(80

)

 

 

(9,159

)

Issuance of partnership interest in consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

 

 

18

 

Share-based compensation activity

 

 

 

 

 

 

 

 

 

210,116

 

 

 

 

 

 

 

2

 

 

 

3,296

 

 

 

 

 

 

 

 

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,332

 

Share Issuance from/to Deferred Compensation Plan

 

 

 

 

 

 

 

 

 

(8,252

)

 

 

101,321

 

 

 

 

 

 

 

 

 

 

 

1,237

 

 

 

(1,237

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Adjustment to Non-controlling Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

-

 

Preferred Share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,725

)

 

 

 

 

 

 

(1,725

)

Distributions declared ($0.15 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(26,347

)

 

 

(230

)

 

 

(26,577

)

BALANCE, March 31, 2016

 

4,000,000

 

 

$

40

 

 

 

174,890,432

 

 

 

847,007

 

 

$

1,749

 

 

$

3,255,908

 

 

$

13,155

 

 

$

(13,155

)

 

$

545,041

 

 

$

(14,271

)

 

$

(1,842,450

)

 

$

18,273

 

 

$

1,964,290

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

 

10


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

 

 

 

Three-month periods ended March 31,

 

 

 

2017

 

 

2016

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

21,271

 

 

$

46,310

 

Adjustments to reconcile net income to net cash from operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

45,892

 

 

 

48,873

 

Amortization of deferred financing costs

 

 

634

 

 

 

774

 

Amortization of debt discount/(premium), net

 

 

362

 

 

 

382

 

Amortization of stock compensation costs

 

 

3,124

 

 

 

2,296

 

Straight-line rent income

 

 

(5,895

)

 

 

(6,104

)

Amortization of acquired above (below) market leases, net

 

 

(1,338

)

 

 

(2,232

)

Straight-line ground rent expense

 

 

22

 

 

 

22

 

Provision for doubtful accounts

 

 

707

 

 

 

215

 

Net gain on real estate venture transactions

 

 

(14,582

)

 

 

(5,929

)

Net gain on sale of interests in real estate

 

 

(7,323

)

 

 

(115,456

)

Loss on early extinguishment of debt

 

 

-

 

 

 

66,590

 

Provision for impairment

 

 

2,730

 

 

 

7,390

 

Real Estate Venture loss in excess of distributions

 

 

748

 

 

 

723

 

Deferred financing obligation

 

 

-

 

 

 

(253

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(917

)

 

 

246

 

Other assets

 

 

(10,926

)