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Section 1: 10-Q (FORM 10-Q)

bdn-10q_20160930.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 September 30, 2016

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, or a smaller reporting company. See the definitions of “large accelerated filer”, "accelerated filer", and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Brandywine Realty Trust:

 

Large accelerated filer 

 

Accelerated filer 

 

Non-accelerated filer 

 

Smaller reporting company 

Brandywine Operating Partnership, L.P.:

 

Large accelerated filer 

 

Accelerated filer 

 

Non-accelerated filer 

 

Smaller reporting company 

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 175,140,760 Common Shares of Beneficial Interest, par value $0.01 per share of Brandywine Realty Trust, were outstanding as of October 21, 2016.

 

 

 

 

 


EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2016 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 September 30, 2016, owned a 99.1% interest in the Operating Partnership. The remaining 0.9% 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.

2


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.

 

3


TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I — FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Financial Statements

 

 

 

 

 

Brandywine Realty Trust

 

 

 

 

 

Financial Statements of Brandywine Realty Trust

 

5

 

 

 

Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015

 

5

 

 

 

Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2016 and 2015

 

6

 

 

 

Consolidated Statements of Comprehensive Income for the three and nine-month periods ended September 30, 2016 and 2015

 

7

 

 

 

Consolidated Statements of Beneficiaries’ Equity for the nine-month periods ended September 30, 2016 and 2015

 

8

 

 

 

Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2016 and 2015

 

10

 

 

 

Brandywine Operating Partnership, L.P.

 

 

 

 

 

Financial Statements of Brandywine Operating Partnership, L.P.

 

12

 

 

 

Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015

 

12

 

 

 

Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2016 and 2015

 

13

 

 

 

Consolidated Statements of Comprehensive Income for the three and nine-month periods ended September 30, 2016 and 2015

 

14

 

 

 

Consolidated Statements of Partners’ Equity for the nine-month periods ended September 30, 2016 and 2015

 

15

 

 

 

Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2016 and 2015

 

17

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

19

 

 

 

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

 

41

 

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

67

 

 

 

Item 4. Controls and Procedures

 

68

 

 

 

PART II — OTHER INFORMATION

 

69

 

 

 

Item 1. Legal Proceedings

 

69

 

 

 

Item 1A. Risk Factors

 

69

 

 

 

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

 

69

 

 

 

Item 3. Defaults Upon Senior Securities

 

69

 

 

 

Item 4. Mine Safety Disclosures

 

69

 

 

 

Item 5. Other Information

 

69

 

 

 

Item 6. Exhibits

 

70

 

 

 

Signatures

 

71

 

 

 

Index to Exhibits

 

73

Filing Format

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

 

4


PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

BRANDYWINE REALTY TRUST

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)

 

 

 

September 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

ASSETS

 

(unaudited)

 

 

 

 

 

Real estate investments:

 

 

 

 

 

 

 

 

Operating properties

 

$

3,686,339

 

 

$

3,693,000

 

Accumulated depreciation

 

 

(869,836

)

 

 

(867,035

)

Operating real estate investments, net

 

 

2,816,503

 

 

 

2,825,965

 

Construction-in-progress

 

 

249,183

 

 

 

268,983

 

Land held for development

 

 

155,297

 

 

 

130,479

 

Total real estate investments, net

 

 

3,220,983

 

 

 

3,225,427

 

Assets held for sale, net

 

 

12,604

 

 

 

584,365

 

Cash and cash equivalents

 

 

219,059

 

 

 

56,694

 

Accounts receivable, net of allowance of $2,304 and $1,736 in 2016 and 2015, respectively

 

 

9,925

 

 

 

17,126

 

Accrued rent receivable, net of allowance of $13,009 and $14,442 in 2016 and 2015, respectively

 

 

145,816

 

 

 

145,092

 

Investment in Real Estate Ventures, equity method

 

 

282,162

 

 

 

241,004

 

Deferred costs, net of accumulated amortization of $58,769 and $67,899, respectively

 

 

92,054

 

 

 

101,419

 

Intangible assets, net

 

 

81,207

 

 

 

111,623

 

Other assets

 

 

79,108

 

 

 

71,761

 

Total assets

 

$

4,142,918

 

 

$

4,554,511

 

LIABILITIES AND BENEFICIARIES' EQUITY

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

322,623

 

 

$

545,753

 

Unsecured term loans, net

 

 

248,016

 

 

 

247,800

 

Unsecured senior notes, net

 

 

1,442,922

 

 

 

1,591,164

 

Accounts payable and accrued expenses

 

 

106,546

 

 

 

99,856

 

Distributions payable

 

 

30,036

 

 

 

28,249

 

Deferred income, gains and rent

 

 

30,022

 

 

 

30,413

 

Acquired lease intangibles, net

 

 

19,731

 

 

 

25,655

 

Liabilities related to assets held for sale

 

 

49

 

 

 

2,151

 

Other liabilities

 

 

31,399

 

 

 

31,379

 

Total liabilities

 

$

2,231,344

 

 

$

2,602,420

 

Commitments and contingencies (See Note 13)

 

 

 

 

 

 

 

 

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 2016 and 2015

 

 

40

 

 

 

40

 

Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 175,140,760 and 174,688,568 issued and outstanding in 2016 and 2015, respectively

 

 

1,752

 

 

 

1,747

 

Additional paid-in-capital

 

 

3,258,049

 

 

 

3,252,622

 

Deferred compensation payable in common shares

 

 

13,684

 

 

 

11,918

 

Common shares in grantor trust, 899,457 in 2016, 745,686 in 2015

 

 

(13,684

)

 

 

(11,918

)

Cumulative earnings

 

 

551,572

 

 

 

499,086

 

Accumulated other comprehensive loss

 

 

(15,052

)

 

 

(5,192

)

Cumulative distributions

 

 

(1,902,076

)

 

 

(1,814,378

)

Total Brandywine Realty Trust's equity

 

 

1,894,285

 

 

 

1,933,925

 

Non-controlling interests

 

 

17,289

 

 

 

18,166

 

Total beneficiaries' equity

 

$

1,911,574

 

 

$

1,952,091

 

Total liabilities and beneficiaries' equity

 

$

4,142,918

 

 

$

4,554,511

 

 

 

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

 

 

5


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

Three-month periods ended

 

 

Nine-month periods ended

 

 

September 30,

 

 

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents

$

104,537

 

 

$

124,263

 

 

$

318,324

 

 

$

363,800

 

Tenant reimbursements

 

17,324

 

 

 

21,553

 

 

 

53,315

 

 

 

64,006

 

Termination fees

 

611

 

 

 

1,097

 

 

 

1,459

 

 

 

2,561

 

Third party management fees, labor reimbursement and leasing

 

6,248

 

 

 

4,274

 

 

 

17,691

 

 

 

12,805

 

Other

 

974

 

 

 

1,398

 

 

 

2,588

 

 

 

5,467

 

Total revenue

 

129,694

 

 

 

152,585

 

 

 

393,377

 

 

 

448,639

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

37,250

 

 

 

43,894

 

 

 

114,208

 

 

 

133,175

 

Real estate taxes

 

11,566

 

 

 

13,119

 

 

 

34,933

 

 

 

37,632

 

Third party management expenses

 

2,501

 

 

 

1,605

 

 

 

7,172

 

 

 

4,858

 

Depreciation and amortization

 

46,956

 

 

 

58,314

 

 

 

142,736

 

 

 

160,355

 

General and administrative expenses

 

5,515

 

 

 

6,127

 

 

 

20,711

 

 

 

21,554

 

Provision for impairment

 

-

 

 

 

-

 

 

 

13,069

 

 

 

2,508

 

Total operating expenses

 

103,788

 

 

 

123,059

 

 

 

332,829

 

 

 

360,082

 

Operating income

 

25,906

 

 

 

29,526

 

 

 

60,548

 

 

 

88,557

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

291

 

 

 

126

 

 

 

970

 

 

 

1,189

 

Tax credit transaction income

 

-

 

 

 

11,853

 

 

 

-

 

 

 

11,853

 

Interest expense

 

(20,814

)

 

 

(27,900

)

 

 

(64,334

)

 

 

(83,971

)

Interest expense - amortization of deferred financing costs

 

(645

)

 

 

(1,010

)

 

 

(2,063

)

 

 

(3,377

)

Interest expense - financing obligation

 

(156

)

 

 

(296

)

 

 

(679

)

 

 

(906

)

Equity in loss of Real Estate Ventures

 

(7,254

)

 

 

(1,093

)

 

 

(9,323

)

 

 

(1,835

)

Net gain (loss) on disposition of real estate

 

(104

)

 

 

6,083

 

 

 

114,625

 

 

 

16,673

 

Net gain on sale of undepreciated real estate

 

188

 

 

 

3,019

 

 

 

188

 

 

 

3,019

 

Net gain from remeasurement of investments in Real Estate Ventures

 

-

 

 

 

-

 

 

 

-

 

 

 

758

 

Net gain on Real Estate Venture transactions

 

10,472

 

 

 

-

 

 

 

19,529

 

 

 

-

 

Loss on early extinguishment of debt

 

-

 

 

 

-

 

 

 

(66,590

)

 

 

-

 

Net income

 

7,884

 

 

 

20,308

 

 

 

52,871

 

 

 

31,960

 

Net income attributable to non-controlling interests

 

(58

)

 

 

(161

)

 

 

(425

)

 

 

(221

)

Net income attributable to Brandywine Realty Trust

 

7,826

 

 

 

20,147

 

 

 

52,446

 

 

 

31,739

 

Distribution to preferred shareholders

 

(1,725

)

 

 

(1,725

)

 

 

(5,175

)

 

 

(5,175

)

Nonforfeitable dividends allocated to unvested restricted shareholders

 

(79

)

 

 

(76

)

 

 

(263

)

 

 

(253

)

Net income attributable to Common Shareholders of Brandywine Realty Trust

$

6,022

 

 

$

18,346

 

 

$

47,008

 

 

$

26,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.03

 

 

$

0.10

 

 

$

0.27

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

$

0.03

 

 

$

0.10

 

 

$

0.27

 

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

175,127,110

 

 

 

178,188,037

 

 

 

174,976,998

 

 

 

179,198,714

 

Diluted weighted average shares outstanding

 

176,364,615

 

 

 

178,776,684

 

 

 

176,009,822

 

 

 

179,988,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share

$

0.16

 

 

$

0.15

 

 

$

0.47

 

 

$

0.45

 

 

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

 

 

6


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

 

 

Three-month periods ended

 

 

Nine-month periods ended

 

 

September 30,

 

 

September 30,

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Net income

$

7,884

 

 

$

20,308

 

 

$

52,871

 

 

$

31,960

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative financial instruments

 

2,454

 

 

 

(2,922

)

 

 

(10,764

)

 

 

(4,091

)

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

 

286

 

 

 

58

 

 

 

818

 

 

 

174

 

Total comprehensive income (loss)

 

2,740

 

 

 

(2,864

)

 

 

(9,946

)

 

 

(3,917

)

Comprehensive income

 

10,624

 

 

 

17,444

 

 

 

42,925

 

 

 

28,043

 

Comprehensive income attributable to non-controlling interest

 

(81

)

 

 

(136

)

 

 

(339

)

 

 

(187

)

Comprehensive income attributable to Brandywine Realty Trust

$

10,543

 

 

$

17,308

 

 

$

42,586

 

 

$

27,856

 

 

(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.

 

 

 

7


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY

For the nine-month period ended September 30, 2016

(unaudited, in thousands, except number of shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52,446

 

 

 

 

 

 

 

 

 

 

 

425

 

 

 

52,871

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,860

)

 

 

 

 

 

 

(86

)

 

 

(9,946

)

Issuance of partnership interest in consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

73

 

 

 

73

 

Conversion of LP Units to Common Shares

 

 

 

 

 

 

 

 

 

55,303

 

 

 

 

 

 

 

1

 

 

 

874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(875

)

 

 

-

 

Share-based compensation activity

 

 

 

 

 

 

 

 

 

405,200

 

 

 

 

 

 

 

4

 

 

 

4,890

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,934

 

Share Issuance from/(to) Deferred Compensation Plan

 

 

 

 

 

 

 

 

 

(8,311

)

 

 

153,771

 

 

 

 

 

 

 

(47

)

 

 

1,766

 

 

 

(1,766

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(47

)

Adjustment to Non-controlling Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(290

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

290

 

 

 

-

 

Preferred Share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,175

)

 

 

 

 

 

 

(5,175

)

Distributions declared ($0.47 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(82,523

)

 

 

(704

)

 

 

(83,227

)

BALANCE, September 30, 2016

 

4,000,000

 

 

$

40

 

 

 

175,140,760

 

 

 

899,457

 

 

$

1,752

 

 

$

3,258,049

 

 

$

13,684

 

 

$

(13,684

)

 

$

551,572

 

 

$

(15,052

)

 

$

(1,902,076

)

 

$

17,289

 

 

$

1,911,574

 

 

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

 

8


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENT OF BENEFICIARIES’ EQUITY

For the nine-month period ended September 30, 2015

(unaudited, in thousands, except number of shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2014

 

4,000,000

 

 

$

40

 

 

 

179,293,160

 

 

 

384,536

 

 

$

1,793

 

 

$

3,314,693

 

 

$

6,219

 

 

$

(6,219

)

 

$

529,487

 

 

$

(4,607

)

 

$

(1,700,579

)

 

$

18,499

 

 

$

2,159,326

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31,739

 

 

 

 

 

 

 

 

 

 

 

221

 

 

 

31,960

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,883

)

 

 

 

 

 

 

(34

)

 

 

(3,917

)

Repurchase and retirement of Common Shares of Beneficial Interest

 

 

 

 

 

 

 

 

 

(4,701,302

)

 

 

 

 

 

 

(47

)

 

 

(60,770

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(60,817

)

Issuance of partnership interest in joint venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,025

 

 

 

1,025

 

Bonus share issuance

 

 

 

 

 

 

 

 

 

8,447

 

 

 

 

 

 

 

 

 

 

 

125