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Section 1: 10-Q (10-Q)

bdn-10q_20180630.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 June 30, 2018

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.)

 

 

 

2929 Walnut Street

Suite 1700

 

 

Philadelphia, Pennsylvania

 

19104

(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 178,602,602 Common Shares of Beneficial Interest, par value $0.01 per share of Brandywine Realty Trust, were outstanding as of July 25, 2018.

 

 


EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended June 30, 2018 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 June 30, 2018, 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.

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 June 30, 2018 and December 31, 2017

 

5

 

 

 

Consolidated Statements of Operations for the three and six-month periods ended June 30, 2018 and 2017

 

6

 

 

 

Consolidated Statements of Comprehensive Income for the three and six-month periods ended June 30, 2018 and 2017

 

7

 

 

 

Consolidated Statements of Beneficiaries’ Equity for the six-month periods ended June 30, 2018 and 2017

 

8

 

 

 

Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2018 and 2017

 

10

 

 

 

Brandywine Operating Partnership, L.P.

 

 

 

 

 

Financial Statements of Brandywine Operating Partnership, L.P.

 

12

 

 

 

Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017

 

12

 

 

 

Consolidated Statements of Operations for the three and six-month periods ended June 30, 2018 and 2017

 

13

 

 

 

Consolidated Statements of Comprehensive Income for the three and six-month periods ended June 30, 2018 and 2017

 

14

 

 

 

Consolidated Statements of Partners’ Equity for the six-month periods ended June 30, 2018 and 2017

 

15

 

 

 

Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2018 and 2017

 

17

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

19

 

 

 

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

 

44

 

 

 

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

 

 

 

 

 

 

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)

 

 

 

June 30,

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Real estate investments:

 

 

 

 

 

 

 

 

Operating properties

 

$

3,864,629

 

 

$

3,832,348

 

Accumulated depreciation

 

 

(931,194

)

 

 

(895,091

)

Operating real estate investments, net

 

 

2,933,435

 

 

 

2,937,257

 

Construction-in-progress

 

 

120,593

 

 

 

121,188

 

Land held for development

 

 

95,658

 

 

 

98,242

 

Prepaid leasehold interests in land held for development

 

 

40,177

 

 

 

-

 

Total real estate investments, net

 

 

3,189,863

 

 

 

3,156,687

 

Assets held for sale, net

 

 

4,254

 

 

 

392

 

Cash and cash equivalents

 

 

108,304

 

 

 

202,179

 

Accounts receivable, net of allowance of $3,850 and $3,467 as of June 30, 2018 and December 31, 2017, respectively

 

 

19,530

 

 

 

17,938

 

Accrued rent receivable, net of allowance of $13,403 and $13,645 as of June 30, 2018 and December 31, 2017, respectively

 

 

176,380

 

 

 

169,760

 

Investment in Real Estate Ventures, equity method

 

 

170,361

 

 

 

194,621

 

Deferred costs, net

 

 

96,184

 

 

 

96,695

 

Intangible assets, net

 

 

59,418

 

 

 

64,972

 

Other assets

 

 

167,225

 

 

 

92,204

 

Total assets

 

$

3,991,519

 

 

$

3,995,448

 

LIABILITIES AND BENEFICIARIES' EQUITY

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

324,289

 

 

$

317,216

 

Unsecured term loan, net

 

 

248,595

 

 

 

248,429

 

Unsecured senior notes, net

 

 

1,365,909

 

 

 

1,365,183

 

Accounts payable and accrued expenses

 

 

106,790

 

 

 

107,074

 

Distributions payable

 

 

32,493

 

 

 

32,456

 

Deferred income, gains and rent

 

 

29,239

 

 

 

42,593

 

Acquired lease intangibles, net

 

 

18,573

 

 

 

20,274

 

Other liabilities

 

 

14,856

 

 

 

15,623

 

Total liabilities

 

$

2,140,744

 

 

$

2,148,848

 

Commitments and contingencies (See Note 13)

 

 

 

 

 

 

 

 

Brandywine Realty Trust's Equity:

 

 

 

 

 

 

 

 

Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 178,604,473 and 178,285,236 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively

 

 

1,787

 

 

 

1,784

 

Additional paid-in-capital

 

 

3,223,072

 

 

 

3,218,564

 

Deferred compensation payable in common shares

 

 

14,036

 

 

 

12,445

 

Common shares in grantor trust, 982,305 and 894,736 as of June 30, 2018 and December 31, 2017, respectively

 

 

(14,036

)

 

 

(12,445

)

Cumulative earnings

 

 

717,515

 

 

 

660,174

 

Accumulated other comprehensive income

 

 

9,221

 

 

 

2,399

 

Cumulative distributions

 

 

(2,118,230

)

 

 

(2,053,741

)

Total Brandywine Realty Trust's equity

 

 

1,833,365

 

 

 

1,829,180

 

Noncontrolling interests

 

 

17,410

 

 

 

17,420

 

Total beneficiaries' equity

 

$

1,850,775

 

 

$

1,846,600

 

Total liabilities and beneficiaries' equity

 

$

3,991,519

 

 

$

3,995,448

 

 

 

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

 

 

Six-month periods ended

 

 

June 30,

 

 

June 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents

$

107,657

 

 

$

101,557

 

 

$

214,017

 

 

$

204,889

 

Tenant reimbursements

 

18,688

 

 

 

18,038

 

 

 

38,537

 

 

 

36,573

 

Termination fees

 

582

 

 

 

140

 

 

 

1,132

 

 

 

1,813

 

Third party management fees, labor reimbursement and leasing

 

4,913

 

 

 

7,080

 

 

 

12,587

 

 

 

13,565

 

Other

 

1,946

 

 

 

976

 

 

 

3,871

 

 

 

1,871

 

Total revenue

 

133,786

 

 

 

127,791

 

 

 

270,144

 

 

 

258,711

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

37,887

 

 

 

37,215

 

 

 

77,219

 

 

 

74,100

 

Real estate taxes

 

12,417

 

 

 

11,078

 

 

 

24,839

 

 

 

22,827

 

Third party management expenses

 

2,243

 

 

 

2,325

 

 

 

6,993

 

 

 

4,772

 

Depreciation and amortization

 

43,717

 

 

 

44,263

 

 

 

87,008

 

 

 

90,155

 

General and administrative expenses

 

7,523

 

 

 

6,659

 

 

 

16,246

 

 

 

15,984

 

Provision for impairment

 

-

 

 

 

327

 

 

 

-

 

 

 

3,057

 

Total operating expenses

 

103,787

 

 

 

101,867

 

 

 

212,305

 

 

 

210,895

 

Operating income

 

29,999

 

 

 

25,924

 

 

 

57,839

 

 

 

47,816

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

641

 

 

 

163

 

 

 

1,344

 

 

 

556

 

Interest expense

 

(19,301

)

 

 

(20,304

)

 

 

(38,834

)

 

 

(41,741

)

Interest expense - amortization of deferred financing costs

 

(627

)

 

 

(596

)

 

 

(1,254

)

 

 

(1,230

)

Equity in income (loss) of Real Estate Ventures

 

(358

)

 

 

1,084

 

 

 

(1,183

)

 

 

336

 

Net gain (loss) on disposition of real estate

 

(35

)

 

 

1,088

 

 

 

(35

)

 

 

8,411

 

Net gain on sale of undepreciated real estate

 

2,837

 

 

 

-

 

 

 

2,859

 

 

 

-

 

Net gain on Real Estate Venture transactions

 

-

 

 

 

-

 

 

 

37,263

 

 

 

14,582

 

Net income before income taxes

 

13,156

 

 

 

7,359

 

 

 

57,999

 

 

 

28,730

 

Income tax (provision) benefit

 

(20

)

 

 

339

 

 

 

(158

)

 

 

239

 

Net income

 

13,136

 

 

 

7,698

 

 

 

57,841

 

 

 

28,969

 

Net income attributable to noncontrolling interests

 

(130

)

 

 

(45

)

 

 

(506

)

 

 

(214

)

Net income attributable to Brandywine Realty Trust

 

13,006

 

 

 

7,653

 

 

 

57,335

 

 

 

28,755

 

Distribution to preferred shareholders

 

-

 

 

 

(307

)

 

 

-

 

 

 

(2,032

)

Preferred share redemption charge

 

-

 

 

 

(3,181

)

 

 

-

 

 

 

(3,181

)

Nonforfeitable dividends allocated to unvested restricted shareholders

 

(86

)

 

 

(73

)

 

 

(200

)

 

 

(172

)

Net income attributable to Common Shareholders of Brandywine Realty Trust

$

12,920

 

 

$

4,092

 

 

$

57,135

 

 

$

23,370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per Common Share

$

0.07

 

 

$

0.02

 

 

$

0.32

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per Common Share

$

0.07

 

 

$

0.02

 

 

$

0.32

 

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

178,547,555

 

 

 

175,333,300

 

 

 

178,471,960

 

 

 

175,255,564

 

Diluted weighted average shares outstanding

 

179,692,336

 

 

 

176,756,598

 

 

 

179,740,690

 

 

 

176,480,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share

$

0.18

 

 

$

0.16

 

 

$

0.36

 

 

$

0.32

 

 

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

 

 

Six-month periods ended

 

 

June 30,

 

 

June 30,

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Net income

$

13,136

 

 

$

7,698

 

 

$

57,841

 

 

$

28,969

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative financial instruments

 

1,578

 

 

 

(1,385

)

 

 

6,274

 

 

 

(371

)

Amortization of interest rate contracts (1)

 

293

 

 

 

305

 

 

 

605

 

 

 

591

 

Total comprehensive income (loss)

 

1,871

 

 

 

(1,080

)

 

 

6,879

 

 

 

220

 

Comprehensive income

 

15,007

 

 

 

6,618

 

 

 

64,720

 

 

 

29,189

 

Comprehensive income attributable to noncontrolling interest

 

(145

)

 

 

(36

)

 

 

(563

)

 

 

(217

)

Comprehensive income attributable to Brandywine Realty Trust

$

14,862

 

 

$

6,582

 

 

$

64,157

 

 

$

28,972

 

 

(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 six-month period ended June 30, 2018

(unaudited, in thousands, except number of 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

 

 

Cumulative Distributions

 

 

Noncontrolling Interests

 

 

Total

 

BALANCE, December 31, 2017

 

178,285,236

 

 

 

894,736

 

 

$

1,784

 

 

$

3,218,564

 

 

$

12,445

 

 

$

(12,445

)

 

$

660,174

 

 

$

2,399

 

 

$

(2,053,741

)

 

$

17,420

 

 

$

1,846,600

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

57,335

 

 

 

 

 

 

 

 

 

 

 

506

 

 

 

57,841

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,822

 

 

 

 

 

 

 

57

 

 

 

6,879

 

Issuance of Common Shares of Beneficial Interest

 

23,311

 

 

 

 

 

 

 

 

 

 

 

416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

416

 

Issuance of partnership interest in consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11

 

 

 

11

 

Distributions from consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(54

)

 

 

(54

)

Share-based compensation activity

 

196,151

 

 

 

 

 

 

 

2

 

 

 

4,207

 

 

 

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,215

 

Share Issuance from/(to) Deferred Compensation Plan

 

101,060

 

 

 

87,569

 

 

 

1

 

 

 

(112

)

 

 

1,591

 

 

 

(1,591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(111

)

Share Choice Plan issuance

 

(1,285

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Reallocation of Noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

-

 

Distributions declared ($0.36 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(64,489

)

 

 

(533

)

 

 

(65,022

)

BALANCE, June 30, 2018

 

178,604,473

 

 

 

982,305

 

 

$

1,787

 

 

$

3,223,072

 

 

$

14,036

 

 

$

(14,036

)

 

$

717,515

 

 

$

9,221

 

 

$

(2,118,230

)

 

$

17,410

 

 

$

1,850,775

 

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

 

8


 

BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENT OF BENEFICIARIES’ EQUITY

For the six-month period ended June 30, 2017

(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 Income (Loss)

 

 

Cumulative Distributions

 

 

Noncontrolling 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

28,755

 

 

 

 

 

 

 

 

 

 

 

214

 

 

 

28,969

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

217

 

 

 

 

 

 

 

3

 

 

 

220

 

Redemption of Preferred Shares

 

(4,000,000

)

 

 

(40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(96,810

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(96,850

)

Issuance of partnership interest in consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

 

 

 

33

 

Equity issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(491

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(491

)

Bonus share issuance

 

 

 

 

 

 

 

 

 

6,752

 

 

 

 

 

 

 

 

 

 

 

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

110

 

Share-based compensation activity

 

 

 

 

 

 

 

 

 

245,444

 

 

 

39,870

 

 

 

2

 

 

 

4,338

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,344

 

Share Issuance from/(to) Deferred Compensation Plan

 

 

 

 

 

 

 

 

 

(1,718

)

 

 

61,639

 

 

 

 

 

 

 

(48

)

 

 

423

 

 

 

(423

)