Brandywine Realty Trust Announces First Quarter 2009 Earnings

RADNOR, Pa., April 29 /PRNewswire-FirstCall/ -- Brandywine Realty Trust (NYSE:
BDN), a real estate investment trust focused on the ownership, management and
development of Class A, suburban and urban office properties in the
mid-Atlantic region and other selected markets throughout the United States,
announced today its financial and operating results for the three-month period
ended March 31, 2009. The highlights are as follows:

Financial Highlights - First Quarter

-- Net loss allocated to common shares totaled $2.8 million or ($0.03)
per
diluted share in the first quarter of 2009 compared to net income of
$10.9 million or $0.13 per diluted share in the first quarter of 2008.

The first quarter of 2009 included $6.6 million of gains on the early
extinguishment of debt, a $3.7 million provision for the impairment of
real estate and $2.9 million of incremental credit reserves, while the
first quarter of 2008 included $2.6 million of gains on the early
extinguishment of debt and $11.0 million of income attributable to
discontinued operations.
-- Funds from operations available to common shares and units (FFO) in
the
first quarter of 2009 totaled $50.5 million ($54.2 million excluding
the
$3.7 million impairment charge) or $0.55 per diluted share ($0.60 per
diluted share excluding the impairment charge) compared to $60.5
million
or $0.67 per diluted share in the first quarter of 2008. Our first
quarter 2009 FFO payout ratio was 54.5% ($0.30 common share dividend
paid / $0.55 FFO per share) or 50.0% excluding the impairment charge.

-- In the first quarter of 2009, we incurred $8.5 million of revenue
maintaining capital expenditures which along with our other
adjustments
to FFO, resulted in $43.9 million of cash available for distribution
(CAD) or $0.48 per diluted share compared to $46.4 million of CAD or
$0.51 per diluted share in the first quarter of 2008 when we incurred
$6.8 million of revenue maintaining capital expenditures. Our first
quarter 2009 CAD payout ratio was 62.5% ($0.30 common share dividend
paid / $0.48 CAD per share).

Portfolio Highlights

-- In the first quarter of 2009, our net operating income (NOI) excluding
termination revenues and other income items increased 0.3% on a GAAP
basis and 5.6% on a cash basis for our 233 same store properties which
were 91.2% and 93.2% occupied on March 31, 2009 and March 31, 2008,
respectively.
-- During the first quarter of 2009, we completed 717,986 square feet of
total leasing activity including 510,285 square feet of renewals,
118,223 square feet of new leases and 89,478 square feet of tenant
expansions. We achieved a 78.1% retention rate in our core portfolio
with negative net absorption of 50,099 square feet excluding 21,328
square feet of early terminations and 178,641 square feet of tenant
bankruptcies, or 62.0% including these items. During the first
quarter
of 2009, we achieved an 11.2% increase on our renewal rental rates and
a
6.5% decrease on our new lease and expansion rental rates, both on a
GAAP basis.

-- At March 31, 2009, our core portfolio (excluding four recently
completed
but not yet stabilized developments) was 91.2% occupied and 92.0%
leased
(reflecting leases commencing after March 31, 2009). With these four
developments included, our core portfolio was 89.3% occupied and 91.6%
leased at March 31, 2009. We owned 245 properties at March 31, 2009,
encompassing 237 core properties aggregating 23.8 million square feet
and eight development/ redevelopment properties aggregating 2.3
million
square feet.

Investment Highlights

-- In the first quarter of 2009, we sold three properties in two
transactions, generating $10.1 million of gross consideration and $0.2
million of gains. Subsequent to quarter end, we closed a $26.5
million
sale of a single property bringing year to date sales to $36.6
million,
or just over 20% of our $180 million 2009 sales goal. Net of
transaction costs and a twelve month $1.0 million seller financing on
one of the smaller sales, we realized $33.5 million of aggregate net
proceeds from these sales which we used for debt repayments and other
general corporate purposes. We currently have approximately $135
million of transactions in active discussions with $85 million of that
under firm contract. We have many other properties in earlier stages
of
marketing or in initial bid solicitation and remain confident that we
will meet or exceed our 2009 sales target.

-- At March 31, 2009, we were proceeding on two developments and six
redevelopments with total project costs of $440.7 million of which a
total of $276.5 million remained to be funded - $161.2 million in 2009
and $115.3 million in 2010. These amounts include $355.5 million of
total project costs for the combined 30th Street Post Office (100%
leased to the Internal Revenue Service) and Cira South Garage (94.3%
leased to the Internal Revenue Service) in Philadelphia, Pennsylvania
of
which $257.2 million remained to be funded at March 31, 2009. We are
also finishing the lease-up of the four recently completed
developments
for which we expect to spend up to an additional $35.6 million, all in
2009.

Capital Markets Highlights

-- During the first quarter of 2009, we repurchased a total of $34.9
million of our unsecured senior notes maturing in 2009, 2010 and 2011
(our exchangeable notes due 2026 with a put date in October 2011) in
open-market transactions and completed a tender for $40.3 million of
our
2009 Notes ($28.4 million of which are being held along with $4.1
million of prior open-market repurchases of these notes in an escrow
account until the November 2009 maturity), generating aggregate gains
of
$6.6 million on the early extinguishment of debt.
-- At March 31, 2009, our net debt to gross assets measured 50.6%
compared
to a peak of 54.3% at September 30, 2007, reflecting a $535.6 million
reduction in our net debt over that eighteen-month period. At March
31,
2009, we had $389.5 million available for use and drawdown under our
various credit facilities.
-- We achieved a 2.6 times interest coverage ratio for the quarter ended
March 31, 2009, the same as we achieved for the quarter ended March
31,
2008.

-- Subsequent to quarter end, we closed an $89.8 million first mortgage
financing on Two Logan Square, a 702,006 square foot, 99.1% leased,
class A, office tower in Philadelphia, PA. The loan features a 7.57%
rate and a seven-year term with three years of interest only payments
followed by a thirty-year amortization schedule. $68.6 million of the
proceeds was used to repay without penalty the balance of the former
Two
Logan first mortgage loan and $21.2 million was used for general
corporate purposes including the repayment of existing indebtedness.

"Our 2009 plan remains very much on track and is holding up well in the face
of challenging economic conditions," stated Gerard H. Sweeney, President and
Chief Executive Officer of Brandywine Realty Trust. "We had a successful
quarter on our leasing activities, meeting or exceeding our objectives for new
leases, retention, lease rates and capital deployment. We were pleased to
close the Two Logan loan, and with continued progress on our capital raising
initiatives, remain focused on sales and financings to enhance our balance
sheet management and liquidity."

Distributions
Our dividend policy is to match aggregate 2009 common share dividends to 2009
taxable income and to evaluate the mix of cash and common shares on an ongoing
basis. On March 18, 2009, our Board of Trustees declared a quarterly dividend
distribution of $0.10 per common share that was paid on April 17, 2009 to
shareholders of record as of April 3, 2009, bringing total year-to-date 2009
dividends to $0.40 per common share. Our Board also declared regular
quarterly dividend distributions of $0.46875 per 7.50% Series C Cumulative
Redeemable Preferred Share and $0.460938 per 7.375% Series D Cumulative
Redeemable Preferred Share that were paid on April 15, 2009 to holders of
record as of March 30, 2009 of the Series C and Series D Preferred Shares,
respectively.

2009 Earnings and FFO Guidance
Based on current plans and assumptions and subject to the risks and
uncertainties more fully described in our Securities and Exchange Commission
filings, we are maintaining our previously issued guidance for full year 2009
FFO per diluted share to be in a range of $2.04 to $2.21 excluding impairment
charges. When applicable, we report our FFO both with and without impairment
charges. Our earnings and FFO guidance is provided for informational purposes
and is subject to change. The following is a reconciliation of the
calculation of 2009 FFO per diluted share and earnings per diluted share:

Guidance for 2009 Range or Value
----------------- --------------

Earnings (loss) per diluted share allocated
to common shareholders $(0.20) to $(0.03)
Plus: real estate depreciation and
amortization 2.20 2.20
---- ----
FFO per diluted share $2.00 to $2.17

Plus: impairment charges (incurred to date) 0.04 0.04
---- ----
Adjusted FFO per diluted share $2.04 to $2.21
===== =====

Our 2009 FFO guidance does not include any income or impairments from the sale
of real estate not previously disclosed. Our 2009 FFO guidance does not
include any income from the sale of undepreciated real estate, in accordance
with our current practice.

Accounting Disclosures
On January 1, 2009, we adopted FSP APB 14-1, Accounting for Convertible Debt
Instruments That May Be Settled in Cash upon Conversion (Including Partial
Cash Settlement), which requires retrospective application. This adoption
impacts our exchangeable notes due 2026 with a put date in 2011 that had an
outstanding balance of $264.5 million as of March 31, 2009 and which were
originally issued in October 2006. The retrospective treatment requires us to
bifurcate the net proceeds of the exchangeable notes on a relative fair value
basis (based on the then market "straight debt" interest rate) between
unsecured debt and the equity conversion options issued in the transaction and
affects previously recognized interest expense, capitalized interest and gain
on extinguishment of debt associated with the convertible notes, and all
related calculations such as net income per diluted share of the Company.

On January 1, 2009, we adopted FAS 160, Non-controlling Interests in
Consolidated Financial Statements an Amendment to ARB 51, which affects the
classification and potential recognition of any non-controlling interest
(formerly called minority interest) relating to Operating Partnership
unit-holders and outside owners of our three consolidated real estate
ventures. Based on our analysis, the non-controlling interests related to the
Operating Partnership will be reflected as a component of the Equity section
of our Consolidated Balance Sheet, instead of within the "mezzanine" section.
In addition, the non-controlling interest's portion of earnings is now
presented below net income. This presentation is applied retrospectively.

Non-GAAP Supplemental Financial Measures
We compute our financial results in accordance with generally accepted
accounting principles (GAAP). Although FFO, NOI and CAD are non-GAAP
financial measures, we believe that FFO, NOI and CAD calculations are helpful
to shareholders and potential investors and are widely recognized measures of
real estate investment trust performance. At the end of this press release,
we have provided a reconciliation of the non-GAAP financial measures to the
most directly comparable GAAP measure.

Funds from Operations (FFO)
We compute FFO in accordance with standards established by the National
Association of Real Estate Investment Trusts (NAREIT), which may not be
comparable to FFO reported by other REITs that do not compute FFO in
accordance with the NAREIT definition, or that interpret the NAREIT definition
differently than us. NAREIT defines FFO as net income (loss) before
non-controlling interests and excluding gains (losses) on sales of property
and extraordinary items (computed in accordance with GAAP); plus real estate
related depreciation and amortization (excluding amortization of deferred
financing costs), and after similar adjustments for unconsolidated joint
ventures. Net income, the GAAP measure that we believe to be most directly
comparable to FFO, includes depreciation and amortization expenses, gains or
losses on property sales, extraordinary items and non-controlling interests.
To facilitate a clear understanding of our historical operating results, FFO
should be examined in conjunction with net income (determined in accordance
with GAAP) as presented in the financial statements included elsewhere in this
release. FFO does not represent cash flow from operating activities
(determined in accordance with GAAP) and should not be considered to be an
alternative to net income (loss) (determined in accordance with GAAP) as an
indication of our financial performance or to be an alternative to cash flow
from operating activities (determined in accordance with GAAP) as a measure of
our liquidity, nor is it indicative of funds available for our cash needs,
including our ability to make cash distributions to shareholders.

For information purposes, we also provide FFO adjusted for impairment charges.
Although our calculation of FFO as adjusted differs from NAREIT's definition
of FFO and may not be comparable to that of other REITs and real estate
companies, we believe it provides a meaningful supplemental measure of our
operating performance because we believe that by excluding impairment charges,
shareholders and potential investors are presented with an indicator of our
operating performance that more closely achieves the objectives of the real
estate industry in presenting FFO.

Net Operating Income (NOI)
NOI is a non-GAAP financial measure equal to net income available to common
shareholders, the most directly comparable GAAP financial measure, plus
corporate general and administrative expense, depreciation and amortization,
interest expense, non-controlling interests and losses from early
extinguishment of debt, less interest income, development and management
income, gains from property dispositions, gains on sale from discontinued
operations, gains on early extinguishment of debt, income from discontinued
operations, income from unconsolidated joint ventures and non-controlling
interests. In some cases, we also present NOI on a cash basis, which is NOI
after eliminating the effect of straight-lining of rent and deferred market
intangible amortization. NOI presented by us may not be comparable to NOI
reported by other REITs that define NOI differently. NOI should not be
considered an alternative to net income as an indication of our performance,
or as an alternative to cash flow from operating activities as a measure of
our liquidity or ability to make cash distributions to shareholders.

Cash Available for Distribution (CAD)
CAD is a non-GAAP financial measure that is not intended as an alternative to
cash flow from operating activities as determined under GAAP. CAD is
presented solely as a supplemental disclosure with respect to liquidity
because we believe it provides useful information regarding our ability to
fund our distributions. Because other companies do not necessarily calculate
CAD the same way as we do, our presentation of CAD may not be comparable to
similarly titled measures provided by other companies.

Revenue Maintaining Capital Expenditures
Revenue maintaining capital expenditures, a non-GAAP financial measure, are a
component of our CAD calculation and represent the portion of capital
expenditures required to maintain our current level of funds available for
distribution. Revenue maintaining capital expenditures include current tenant
improvement and allowance expenditures for all tenant spaces that have been
owned for at least one year, and that were not vacant during the twelve-month
period prior to the date that the tenant improvement or allowance expenditure
was approved. Revenue maintaining capital expenditures also include other
expenditures intended to maintain our current revenue base. Accordingly, we
exclude capital expenditures related to development and redevelopment
projects, as well as certain projects at our core properties that are intended
to attract prospective tenants in order to increase revenues and/or occupancy
rates.

First Quarter Earnings Call and Supplemental Information Package
We will host a conference call on Thursday, April 30, 2009 at 11:00 a.m. EDT.
The conference call can be accessed by calling 1-800-683-1525 and referencing
conference ID #89222764. Beginning two hours after the conference call, a
taped replay of the call can be accessed 24 hours a day through Thursday, May
14, 2009 by calling 1-800-642-1687 and providing access code 89222764. In
addition, the conference call can be accessed via a webcast 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 first 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 - Second Quarter 2009 Conference Call
We anticipate that we will release our second quarter 2009 earnings on
Tuesday, July 28, 2009, after the market close and will host our second
quarter 2009 conference call on Wednesday, July 29, 2009, 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 37.5 million square feet, including 26.2 million
square feet which it owns on a consolidated basis. For more information,
visit our website at www.brandywinerealty.com.

Forward-Looking Statements
Estimates of future earnings per share, FFO per share, common share dividend
distributions and certain other statements in this release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause our and our
affiliates' actual results, performance, achievements or transactions to be
materially different from any future results, performance, achievements or
transactions expressed or implied by such forward-looking statements. Such
risks, uncertainties and other factors relate to, among others: our ability to
lease vacant space and to renew or relet space under expiring leases at
expected levels; competition with other real estate companies for tenants; the
potential loss or bankruptcy of major tenants; interest rate levels; the
availability of debt, equity or other financing; risks of acquisitions,
dispositions and developments, including the cost of construction delays and
cost overruns; unanticipated operating and capital costs; our ability to
obtain adequate insurance, including coverage for terrorist acts; dependence
upon certain geographic markets; and general and local economic and real
estate conditions, including the extent and duration of adverse changes that
affect the industries in which our tenants operate. Additional information on
factors which could impact us and the forward-looking statements contained
herein are included in our filings with the Securities and Exchange
Commission, including our Form 10-K for the year ended December 31, 2008. We
assume no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events except as required by law.

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

March 31, December 31,
2009 2008
---- ----
ASSETS
Real estate investments:
Operating properties $4,586,941 $4,596,137
Accumulated depreciation (663,843) (639,688)
-------- --------
3,923,098 3,956,449
Construction-in-progress 138,310 122,219
Land inventory 112,902 112,699
------- -------
4,174,310 4,191,367

Cash and cash equivalents 4,083 3,924
Cash in escrow - 31,385
Accounts receivable, net 10,068 11,762
Accrued rent receivable, net 85,072 86,362
Investment in real estate ventures 86,090 71,028
Deferred costs, net 82,935 89,327
Intangible assets, net 135,415 145,757
Notes receivable 49,343 48,048
Other assets 60,673 59,008
------ ------

Total assets $4,687,989 $4,737,968
========== ==========

LIABILITIES AND EQUITY
Mortgage notes payable, including premiums $484,320 $487,525
Borrowings under credit facilities 200,000 153,000
Unsecured term loan 183,000 183,000
Unsecured senior notes, net of discounts 1,844,016 1,917,970
Accounts payable and accrued expenses 89,094 74,824
Distributions payable 11,138 29,288
Tenant security deposits and deferred rents 58,973 58,692
Acquired lease intangibles, net 44,794 47,626
Other liabilities 51,064 63,545
------ ------
Total liabilities 2,966,399 3,015,470

Brandywine Realty Trust's equity:
Preferred shares - Series C 20 20
Preferred shares - Series D 23 23
Common shares 882 882
Additional paid-in capital 2,351,859 2,351,428
Deferred compensation payable in common
stock 5,662 6,274
Common shares in treasury (11,808) (14,121)
Common shares held in grantor trust (5,662) (6,274)
Cumulative earnings 496,077 498,716
Accumulated other comprehensive loss (6,534) (17,005)
Cumulative distributions (1,161,459) (1,150,406)
---------- ----------
Total Brandywine Realty Trust's equity 1,669,060 1,669,537
--------- ---------

Non-controlling interests 52,530 52,961
------ ------
Total equity 1,721,590 1,722,498
--------- ---------

Total liabilities and equity $4,687,989 $4,737,968
========== ==========

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

Three Months Ended
March 31,
------------------
2009 2008
---- ----
Revenue
Rents $123,604 $123,511
Tenant reimbursements 22,464 19,039
Termination fees 113 3,232
Third party management
fees, labor reimbursement
and leasing 4,764 5,679
Other 923 783
--- ---
Total revenue 151,868 152,244

Operating Expenses
Property operating expenses 45,155 40,920
Real estate taxes 15,463 15,565
Third party management expenses 2,115 2,246
Depreciation and amortization 52,569 51,304
General & administrative
expenses 4,958 4,912
Provision for impairment of
real estate 3,700 -
----- ---
Total operating expenses 123,960 114,947
------- -------

Operating income 27,908 37,297

Other income (expense)
Interest income 579 203
Interest expense (35,646) (37,043)
Deferred financing costs (1,252) (1,508)
Equity in income of real
estate ventures 586 1,115
Net (loss) on disposition
of undepreciated real
estate - (24)
Gain on early
extinguishment of debt 6,639 2,563

------ -----
(Loss) income from continuing
operations (1,186) 2,603

Discontinued operations:
Income from discontinued
operations 119 3,013
Net gain on disposition of
discontinued operations 194 7,981
--- -----
Total discontinued operations 313 10,994
--- ------

Net (loss) income (873) 13,597

Net income from discontinued
operations attributable to
non-controlling interests -
LP units (10) (463)
Net (loss) income attributable to
non-controlling interests -
partners' share of consolidated
real estate ventures 6 (40)
Net (loss) income attributable to
non-controlling interests - LP
units 99 (24)
-- ---
Net (loss) income attributable
to non-controlling interests 95 (527)
-- ----

Net (loss) income attributable
to Brandywine Realty Trust (778) 13,070
Preferred share dividends (1,998) (1,998)
Amount allocated to unvested
restricted shareholders (37) (167)

------- -------
Net (loss) income available
to Common Shareholders $(2,813) $10,905
======= =======

PER SHARE DATA
Basic income (loss) per
Common Share $(0.03) $0.13
====== =====

Basic weighted-average shares
outstanding 88,210,384 87,073,721

Diluted income (loss) per
Common Share $(0.03) $0.13
====== =====

Diluted weighted-average
shares outstanding 88,210,384 87,088,131

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

Three Months Ended
March 31,
------------------
2009 2008
---- ----

Reconciliation of Net (Loss) Income to Funds
from Operations:
Net (loss) income available to common shareholders $(2,813) $10,905

Add (deduct):
Net (loss) income attributable to non-controlling
interests - LP units (99) 24
Amount allocated to unvested restricted
shareholders 37 167
Net loss on disposition of undepreciated real
estate - 24
Net income from discontinued operations attributable
to non-controlling interests - LP units 10 463
Net (gain) on disposition of discontinued
operations (194) (7,981)

Depreciation and amortization:
Real property - continuing operations 38,847 36,518
Leasing costs (includes acquired
intangibles) - continuing operations 13,211 14,173
Real property - discontinued operations 46 3,231
Leasing costs (includes acquired
intangibles) - discontinued operations 11 1,405
Company's share of unconsolidated real
estate ventures 1,855 2,067
Partners' share of consolidated real estate
ventures (220) (218)
---- ----

Funds from operations $50,691 $60,778
Funds from operations allocable to unvested
restricted shareholders (207) (253)

------- -------
Fund from operations available to common share
and unit holders (FFO) $50,484 $60,525
======= =======

FFO per share - fully diluted $0.55 $0.67
===== =====

FFO, excluding provision for impairments $54,184 $60,525
======= =======

FFO per share, excluding provision for
impairments - fully diluted $0.60 $0.67
===== =====

Weighted-average shares/units outstanding -
fully diluted 91,027,005 90,909,415

Distributions paid per Common Share $0.30 $0.44
===== =====

Payout ratio of FFO (Dividends paid per Common
Share divided / FFO per Share) 54.5% 65.7%

Payout ratio of FFO, excluding provision for
impairments 50.0% 65.7%

CASH AVAILABLE FOR DISTRIBUTION (CAD):
Fund from operations available to common share
and unit holders $50,484 $60,525

Add (deduct):
Rental income from straight-line rent,
including discontinued operations (2,171) (6,609)
Deferred market rental income, including
discontinued operations (1,741) (2,278)
Company's share of unconsolidated real estate
ventures' straight-line and deferred market
rent 90 74
Partners' share of consolidated real estate
ventures' straight-line and deferred market
rent (2) (39)
Operating expense from straight-line rent 363 383
Net (loss) on disposition of undepreciated
real estate - (24)
Provision for impairment of real estate 3,700 -
Deferred compensation costs 1,221 1,158
Fair market value amortization - mortgage
notes payable (428) (1,073)
Debt discount amortization - exchangeable notes 956 1,047
Revenue maintaining capital expenditures
Building improvements (1,375) (240)
Tenant improvements (4,660) (3,825)
Lease commissions (2,512) (2,731)
------ ------
Total revenue maintaining capital
expenditures (8,547) (6,796)

Cash available for distribution $43,925 $46,368
======= =======

CAD per share - fully diluted $0.48 $0.51
===== =====

Weighted-average shares/units outstanding -
fully diluted 91,027,005 90,909,415

Distributions per Common Share $0.30 $0.44
===== =====

Payout ratio of CAD (Dividends paid per Common
Share / CAD per Share) 62.5% 86.3%

BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS - 1st QUARTER
(unaudited and in thousands)

Of the 245 properties owned by the Company as of March 31, 2009, a total
of 233 properties ("Same Store Properties") containing an aggregate of
23.2 million net rentable square feet were owned for the entire three-
month periods ended March 31, 2009 and 2008. Average occupancy for the
Same Store Properties was 91.9% during 2009 and 93.4% during 2008. The
following table sets forth revenue and expense information for the Same
Store Properties:

Three Months
Ended March 31,
----------------
2009 2008
---- ----

Revenue
Rents $119,631 $120,468
Tenant reimbursements 21,294 17,884
Termination fees 113 3,232
Other 351 530
--- ---
141,389 142,114

Operating expenses
Property operating expenses 41,843 39,221
Real estate taxes 14,290 14,593
------ ------

Net operating income $85,256 $88,300
======= =======

Net operating income - percentage
change over prior year -3.4%
----

Net operating income, excluding
termination fees & other $84,792 $84,538
======= =======

Net operating income, excluding
termination fees & other - percentage
change over prior year 0.3%
---

Net operating income $85,256 $88,300
Straight line rents (1,637) (5,982)
FAS 141R rents (1,681) (1,437)
Non-cash ground rent 363 383
--- ---

Cash - Net operating income $82,301 $81,264
======= =======

Cash - Net operating income -
percentage change over prior year 1.3%
---

Cash - Net operating income,
excluding termination fees & other $81,837 $77,502
======= =======

Cash - Net operating income,
excluding termination fees & other -
percentage change over prior year 5.6%
---

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

Three Months
Ended March 31,
----------------
2009 2008
---- ----

Net (loss) income $(873) $13,597
Add/(deduct):
Interest income (579) (203)
Interest expense 35,646 37,043
Deferred financing costs 1,252 1,508
Equity in income of real estate
ventures (586) (1,115)
Depreciation and amortization 52,569 51,304
Net loss on disposition of
undepreciated real estate - 24
Provision for impairment of real
estate 3,700 -
Gain on early extinguishment of debt (6,639) (2,563)
General & administrative expenses 4,958 4,912
Income from discontinued operations (313) (10,994)
---- -------

Consolidated net operating income 89,135 93,513
Less: Net operating income of non same
store properties (1,737) (2,166)
Less: Eliminations and non-property
specific net operating income (2,142) (3,047)
------ ------

Same Store net operating income $85,256 $88,300
======= =======

SOURCE Brandywine Realty Trust

Investor/Press, Marge Boccuti, Manager, Investor Relations, +1-610-832-7702,
marge.boccuti@bdnreit.com, or Company Contact, Howard M. Sipzner, EVP & CFO,
+1-610-832-4907, howard.sipzner@bdnreit.com, both of Brandywine Realty Trust