10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

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

For the fiscal year ended December 31, 2021

OR

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

For the transition period from                    to                   

Brandywine Realty Trust

Brandywine Operating Partnership, L.P.

(Exact name of registrant as specified in its charter)

Maryland
(Brandywine Realty Trust)	001-9106	23-2413352
Delaware
(Brandywine Operating Partnership, L.P.)	000-24407	23-2862640
(State or Other Jurisdiction of Incorporation or Organization)	(Commission file number)	(I.R.S. Employer Identification Number)

2929 Arch Street
Suite 1800
Philadelphia, PA 19104
(Address of principal executive offices) (Zip Code)

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

2929 Walnut Street
Suite 1700
Philadelphia, PA 19104

(Former address)

Securities registered pursuant to section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares of Beneficial Interest	BDN	NYSE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Brandywine Realty Trust	Yes	☒  No ☐
Brandywine Operating Partnership, L.P.	Yes	☒  No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Brandywine Realty Trust	Yes ☐	No	☒
Brandywine Operating Partnership, L.P.	Yes ☐	No	☒

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 every Interactive Data File required to be submitted 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 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, 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	☐

If an emerging growth company, indicate by check mark whether 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 Exchange Act.

☐

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 has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Brandywine Realty Trust	Yes	☒	No ☐
Brandywine Operating Partnership, L.P.	Yes	☒	No ☐

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 ☒

As of June 30, 2021, the aggregate market value of the Common Shares of Beneficial Interest held by non-affiliates of Brandywine Realty Trust was $2,282,260,692 based upon the last reported sale price of $13.71 per share on the New York Stock Exchange on June 30, 2021. An aggregate of 171,383,912 Common Shares of Beneficial Interest was outstanding as of February 17, 2022.

As of June 30, 2021, the aggregate market value of the 823,983 common units of limited partnership (“Units”) held by non-affiliates of Brandywine Operating Partnership, L.P. was $11,296,807 based upon the last reported sale price of $13.71 per share on the New York Stock Exchange on June 30, 2021 of the Common Shares of Beneficial Interest of Brandywine Realty Trust, the sole general partner of Brandywine Operating Partnership, L.P. (For this computation, the Registrant has excluded the market value of all Units beneficially owned by Brandywine Realty Trust.)

Documents Incorporated By Reference

Portions of the proxy statement for the 2022 Annual Meeting of Shareholders of Brandywine Realty Trust are incorporated by reference into Part III of this Form 10-K.

EXPLANATORY NOTE

This report combines the annual reports on Form 10-K for the year ended December 31, 2021 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, terms such as “we”, “us”, or “our” used in this report 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 December 31, 2021, owned a 99.5% interest in the Operating Partnership. The remaining 0.5% 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.

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 in 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.

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. These members are officers of both the Parent Company and of the Operating Partnership.

The Company believes that combining the annual reports on Form 10-K of the Parent Company and the Operating Partnership into a single report will:

•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 the 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 public equity from time to time (and contributing the net proceeds of such issuances to the Operating Partnership) and guaranteeing the debt obligations of the Operating Partnership. The Operating Partnership holds substantially all the assets of the Company, including the Company's ownership interests in the real estate ventures described below. 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 direct or indirect incurrence of indebtedness or through the issuance of partnership units of the Operating Partnership or equity interests in subsidiaries of the Operating Partnership.

The equity and noncontrolling 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 noncontrolling 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.

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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;

•Parent Company’s and Operating Partnership’s Equity

This report also includes separate Item 9A. (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 debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.

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TABLE OF CONTENTS

	Page
PART I
Item 1. Business	7
Item 1A. Risk Factors	11
Item 1B. Unresolved Staff Comments	24
Item 2. Properties	25
Item 3. Legal Proceedings	26
Item 4. Mine Safety Disclosures	26
PART II
Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities	27
Item 6. [Reserved]	28
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	44
Item 8. Financial Statements and Supplementary Data	44
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	44
Item 9A. Controls and Procedures	44
Item 9B. Other Information	46
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	46
PART III
Item 10. Directors, Executive Officers and Corporate Governance	47
Item 11. Executive Compensation	47
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters	47
Item 13. Certain Relationships and Related Transactions, and Director Independence	47
Item 14. Principal Accountant Fees and Services	47
PART IV
Item 15. Exhibits and Financial Statement Schedules	47
Item 16. Form 10-K Summary	53
SIGNATURES	54

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Filing Format

This combined Form 10-K is being filed separately by Brandywine Realty Trust (the “Parent Company”) and Brandywine Operating Partnership, L.P. (the “Operating Partnership”).

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This report and other materials filed by us with the Securities and Exchange Commission (the “SEC”) (as well as information included in oral or other written statements made by us) contain statements that are forward-looking, including statements relating to business and real estate development activities, acquisitions, dispositions, future capital expenditures, financing sources, governmental regulation (including environmental regulation) and competition. We intend such forward-looking statements to be covered by the safe-harbor provisions of the 1995 Act. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be achieved. These forward-looking statements are inherently uncertain, and actual results may differ from expectations. Our actual future results and trends may differ materially from expectations depending on a variety of factors discussed in our filings with the Securities and Exchange Commission (the “SEC”). These factors include without limitation:

•the impact of epidemics, pandemics, or other outbreaks of illness, disease or virus (such as COVID-19 and its variants) and the actions taken by government authorities and others related thereto, including actions that restrict or limit the ability of our Company, our properties and our tenants to operate;

•adverse changes in national and local economic conditions, the real estate industry and the commercial real estate markets in which we operate, which would have a negative effect on, among other things:

•overall market occupancy levels and demand for office and other commercial space and rental rates;

•the financial condition of our tenants, many of which are financial, legal and other professional firms, our lenders, counterparties to our derivative financial instruments and institutions that hold our cash balances and short-term investments, which may expose us to increased risks of default by these parties;

•the availability of financing on attractive terms or at all, which may adversely impact our future interest expense and our ability to pursue acquisition and development opportunities and refinance existing debt; and

•real estate asset valuations, a decline in which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing secured by our properties or on an unsecured basis.

•competition from other owners, developers and investors, including for tenants and investment opportunities;

•our failure to lease unoccupied space in accordance with our projections;

•our failure to re-lease occupied space upon expiration of leases;

•tenant defaults and the bankruptcy of major tenants;

•volatility in capital and credit markets, including changes that reduce availability, and increase costs, of capital;

•increasing interest rates, which could increase our borrowing costs and adversely affect the market price of our securities;

•failure of interest rate hedging contracts to perform as expected and the effectiveness of such arrangements;

•inflation, which, among other things, would increase our operating expenses and costs for supplies and labor;

•failure of acquisitions, developments and other investments, including projects undertaken through joint ventures and equity investments in third parties, to perform as expected;

•unanticipated costs associated with the purchase, integration and operation of our acquisitions;

•unanticipated costs and delays to complete, lease-up and operate our developments and redevelopments, including on account of shortages of, and delays in shipping of, supplies and materials for our developments and redevelopments;

•unanticipated costs associated with land development, including building and construction moratoriums and inability to obtain necessary zoning, land-use, building, occupancy and other required governmental approvals, construction cost increases or overruns and construction delays;

•lack of liquidity of real estate investments, which could make it difficult for us to respond to changing economic or financial conditions or changes in the operating performance of our properties;

•potential damage from natural disasters, including hurricanes and other weather-related events, which could result in substantial costs to us;

•impairment charges;

•uninsured losses due to insurance deductibles, self-insurance retention, uninsured claims or casualties, or losses in excess of applicable coverage;

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•increased costs for, or lack of availability of, adequate insurance, including for terrorist acts or environmental liabilities;

•actual or threatened terrorist attacks;

•security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems, which support our operations and our properties;

•the impact on workplace and tenant space demands driven by technology, employee culture and commuting patterns;

•demand for tenant services beyond those traditionally provided by landlords;

•liability and clean-up costs incurred under environmental or other laws;

•risks associated with our investments in real estate ventures and unconsolidated entities, including our lack of sole decision-making authority and our reliance on our venture partners’ financial condition;

•inability of real estate venture partners to fund venture obligations or perform under our real estate venture development agreements;

•failure to manage our growth effectively into new product types within our portfolio and real estate venture arrangements;

•failure of dispositions to close in a timely manner;

•the impact of climate change and compliance costs relating to laws and regulations governing climate change;

•risks associated with federal, state and local tax audits;

•complex regulations relating to our status as a real estate investment trust, or REIT, and the adverse consequences of our failure to qualify as a REIT;

•changes in accounting principles, or their application or interpretation, and our ability to make estimates and the assumptions underlying the estimates, which could have an effect on our earnings; and

•our internal control over financial reporting may not be considered effective which could result in a loss of investor confidence in our financial reports, and in turn could have an adverse effect on the market price of our securities.

Given these uncertainties, and the other risks identified in the “Risk Factors” section and elsewhere in this report, we caution readers not to place undue reliance on forward-looking statements. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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PART I

Item 1.    Business

Overview

We are a self-administered and self-managed real estate investment trust ("REIT") engaged in the acquisition, development, redevelopment, ownership, management, and operation of a portfolio of office, life science/lab, residential, and mixed-use properties. During the twelve months ended December 31, 2021, we owned and managed properties within five markets: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C., and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in Northern Virginia, Washington, D.C., and Southern Maryland. The Other segment includes properties in Camden County in New Jersey and properties in New Castle County in Delaware. In addition to the five markets, our corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. See Note 1, ''Organization of the Parent Company and the Operating Partnership," to our Consolidated Financial Statements for our property portfolio, management services and land holdings. Unless otherwise indicated, all references in this Form 10-K to “square feet” represent the net rentable area.

The Parent Company was organized and commenced its operations in 1986 as a Maryland REIT. The Parent Company owns its assets and conducts its operations through the Operating Partnership and subsidiaries of the Operating Partnership. The Operating Partnership was formed in 1996 as a Delaware limited partnership. The Parent Company controls the Operating Partnership as its sole general partner. See Note 1, ''Organization of the Parent Company and the Operating Partnership," to our Consolidated Financial Statements for the Parent Company's ownership interest in the Operating Partnership. The ownership interests in the Operating Partnership not owned by the Company consist of common units of limited partnership issued to the holders in exchange for contributions of properties to the Operating Partnership. Our structure as an “UPREIT” is designed, in part, to permit persons contributing properties to us to defer some or all of the tax liability they might otherwise incur in a sale of properties. We have offices in Philadelphia, Pennsylvania; Radnor, Pennsylvania; McLean, Virginia; Mount Laurel, New Jersey; Richmond, Virginia; Wilmington, Delaware; and Austin, Texas.

Our principal executive offices are located at 2929 Arch Street, Suite 1800, Philadelphia, PA 19104, our telephone number is (610) 325-5600 and our website is www.brandywinerealty.com. The content on any website referred to in this Form 10-K is not incorporated by reference into this Form 10-K.

We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and other information with the SEC. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. The address of that site is http://www.sec.gov. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and other information filed or furnished by us with the SEC are available, without charge, on our website, http://www.brandywinerealty.com, as soon as reasonably practicable after they are electronically filed or furnished with the SEC. Copies are also available, free of charge, upon written request to Investor Relations, Brandywine Realty Trust, 2929 Arch Street, Suite 1800, Philadelphia, PA 19104.

Business Segments

See Note 19, ''Segment Information,” to our Consolidated Financial Statements for information on results of operations of our reportable segments for the years ended December 31, 2021, 2020, and 2019 and balance sheet amounts as of December 31, 2021 and 2020.

Joint Ventures

From time to time we consider joint venture opportunities with institutional investors or other real estate companies. Joint venture partnerships provide us with additional sources of capital to share investment risk and fund capital requirements. In some instances, joint venture partnerships provide us with additional local market insight or product type expertise. For information regarding our joint ventures, see Note 4, ''Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements.

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Developments/Redevelopments

Our regular interaction with tenants and other market participants keep us current on innovations in workplace layout and smart living. We leverage this information to identify properties primed for development or redevelopment to meet tenant demands and realize value. The expertise and relationships that we have built from managing complex construction projects allow us to add new assets to our portfolio and renovate existing assets in our portfolio.

Business Objective and Strategies for Growth

Our business objective is to deploy capital effectively to maximize our return on investment and thereby maximize our total return to shareholders. To accomplish this objective we seek to:

•concentrate on urban town centers and central business districts in selected regions, and be the best of class owner and developer in those markets with a full-service office in each of those markets providing property management, leasing, development, and construction expertise;

•maximize cash flow through leasing strategies designed to capture rental growth as rental rates increase and as leases are renewed;

•attain high tenant retention rates by providing a full array of property management, maintenance services and tenant service amenity programs responsive to the varying needs of our diverse tenant base;

•cultivate long-term leasing relationships with a diverse base of high-quality and financially stable tenants;

•increase the economic diversification of our tenant base while maximizing economies of scale;

•form joint ventures with high-quality partners having attractive real estate holdings or significant financial resources;

•utilize our reputation as a full-service real estate development and management organization to identify acquisition and development opportunities that will expand our business and create long-term value; and

•selectively dispose of properties that do not support our long-term business objectives and growth strategies.

We also consider the following to be important objectives:

•to develop and opportunistically acquire high-quality office, life science/lab, residential, and mixed-use properties at attractive yields in markets that we expect will experience economic growth and where we can achieve operating efficiencies;

•to monetize or deploy our land inventory for development of high-quality office, life science/lab, residential, and mixed-use properties, or rezone from office/industrial to life science/lab, residential, retail and hotel to align with market and demand shifts as appropriate;

•to control development sites, including sites under purchase options, that could support high-quality office, life science/lab, residential, and mixed-use properties within our core markets;

•to capitalize on our redevelopment expertise to selectively develop, redevelop and reposition properties in desirable locations that other organizations may not have the resources to pursue;

•to own and develop high-quality office, life science/lab, residential, and mixed-use properties meeting the demands of today’s tenants who require sophisticated telecommunications and related infrastructure, support services, sustainable features and amenities, and to manage those facilities so as to continue to be the landlord of choice for both existing and prospective tenants;

•to strategically grow our portfolio through the development and acquisition of new product types that support our strategy of transient-oriented and amenity based mixed-use properties located in the central business district of Philadelphia, Pennsylvania; Pennsylvania Suburbs; Austin, Texas; and Metropolitan Washington, D.C.; and

•to secure third-party development contracts, which can be a significant source of revenue and enable us to utilize and grow our existing development and construction management resources.

We expect to concentrate our real estate activities in markets where we believe that:

•current and projected market rents and absorption statistics justify construction activity;

•we can maximize market penetration by accumulating a critical mass of properties and thereby enhance operating efficiencies;

•barriers to entry (such as zoning restrictions, utility availability, infrastructure limitations, development moratoriums and limited developable land) will create supply constraints on available space; and

•there is potential for economic growth, particularly job growth and industry diversification.

Operational Strategy

We currently expect to continue to operate in markets where we have a concentration advantage due to economies of scale. We believe that where possible, it is best to operate with a strong base of properties in order to benefit from the personnel

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allocation and the market strength associated with managing multiple properties in the same market. We also intend to selectively dispose of properties and redeploy capital if we determine a property cannot meet our long-term earnings growth expectations. We believe that recycling capital is an important aspect of maintaining the overall quality of our portfolio.

Our broader strategy remains focused on continuing to grow earnings, enhance liquidity and strengthen our balance sheet through capital retention, debt reduction, targeted sales activity and management of our existing and prospective liabilities.

In the long term, we believe that we are well positioned in our current markets and have the expertise to take advantage of both development and acquisition opportunities, as warranted by market and economic conditions, in new markets that have healthy long-term fundamentals and strong growth projections. This capability, combined with what we believe is a conservative financial structure, should allow us to achieve disciplined growth. These abilities are integral to our strategy of having a diverse portfolio of assets, which will meet the needs of our tenants.

We use experienced on-site construction superintendents, operating under the supervision of our project managers and senior management, to control the construction process and mitigate the various risks associated with real estate development.

In order to fund developments, redevelopments and acquisitions, as well as refurbish and improve existing properties, we primarily use proceeds from property dispositions, excess cash from operations after satisfying our dividend and other financing requirements, and external sources of debt and equity capital. The availability of funds for new investments and maintenance of existing properties largely depends on capital markets and liquidity factors over which we can exert little control.

Competition

The real estate business is highly competitive. Our properties compete for tenants with similar properties primarily on the basis of location, total occupancy costs (including base rent and operating expenses), services and amenities provided, and the design and condition of the improvements. As leases at our properties expire, we may encounter significant competition to renew or re-let space in light of the large number of competing properties within the markets in which we operate. As a result, we may be required to provide rent concessions or abatements, incur charges for tenant improvements and other inducements, including early termination rights or below market renewal options, or we may not be able to timely lease vacant space. In such cases, our financial condition, results of operations, cash flow, per share trading price of our common shares and ability to satisfy our debt service obligations and to pay dividends may be adversely affected.

We also face competition when attempting to acquire, sell or develop real estate, including competition from domestic and foreign financial institutions, other REITs, life insurance companies, pension funds, partnerships and individual investors. Our competitors may be able to pay higher property acquisition prices, may have private access to opportunities not available to us and otherwise may be in a better position to acquire a property. Competition may also have the effect of reducing the number of acquisition opportunities available to us, increasing the price required to consummate an acquisition opportunity and generally reducing the demand for office, retail, mixed-use and multifamily space in our markets. Similarly, competition with sellers of similar properties to locate suitable purchasers may result in us receiving lower proceeds from a sale or in us not being able to dispose of a property at a time of our choosing due to the lack of an acceptable return. Our ability to compete also depends upon trends in the economies of our markets, investment alternatives, financial condition and operating results of current and prospective tenants, availability and cost of capital, construction and renovation costs, land availability, our ability to obtain necessary construction approvals, taxes, governmental regulations, legislation and population trends.

Regulation

General

Properties in our markets are subject to various laws, ordinances, and regulations, including regulations relating to common areas. We believe we have the necessary permits and approvals to operate each of our properties.

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Environmental Matters

Our business operations are subject to various federal, state, and local environmental laws and regulations governing land, water, and wetlands resources. Among these are certain laws and regulations under which an owner or operator of real estate could become liable for the costs of removal or remediation of certain hazardous or toxic substances present on or in such property. Such laws often impose liability without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The presence of such substances, or the failure to properly remediate such substances, may subject the owner to substantial liability and may adversely affect the owner’s ability to develop the property or to borrow using such real estate as collateral.

We typically manage this potential liability through performance of Phase I Environmental Site Assessments and, as necessary, Phase II Environmental Site Assessments which include environmental sampling on properties we acquire or develop. Even with these assessments and testings, no assurance can be given that environmental liabilities do not exist, that the reports revealed all environmental liabilities, or that no prior owner created or permitted any material environmental condition not known to us. In certain situations, we have also sought to avail ourselves of legal and regulatory protections offered by federal and state authorities to prospective purchasers of property. Where applicable studies have resulted in the determination that remediation was required by applicable law, the necessary remediation is typically incorporated into the operational or development activity of the relevant property. We are not aware of any environmental liability that we believe would have a material adverse effect on our business, assets, or results of operations.

Certain environmental laws impose liability on a previous owner of a property to the extent that hazardous or toxic substances were present during the prior ownership period. A transfer of the property does not necessarily relieve an owner of such liability. Thus, although we are not aware of any such situation, we may have such liabilities on properties previously sold. We believe that we and our properties are in compliance in all material respects with applicable federal, state, and local laws, ordinances, and regulations governing the environment. For additional information, see Item 1A. Risk Factors – Regulatory Risk Factors – Potential liability for environmental contamination could result in substantial costs.

Information Security

We face risks associated with security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology networks and related systems. The Audit Committee of our Board (the "Audit Committee") and senior management receive and review quarterly reports on cybersecurity matters from our Chief Technology and Innovation Officer, including reports on documented incidents or violations of our IT and security policies. Documented incidents or violations are discussed, and managers are notified for the appropriate follow-up with our human resources department or the employees involved in such incidents or violations, as needed. Although we have not experienced a data or other cybersecurity breach in the past three years that resulted in a financial loss, our Board and the Audit Committee regularly evaluate our existing information technology and security policies and controls to address new and novel threats posed to the Company. We have implemented a training program for employees that includes both proactive education modules, as well as reactive anti-phishing and testing modules designed to test the end-user’s ability to put what they have learned into practice.

Human Capital Resources

As of December 31, 2021, we had approximately 324 full-time employees and 3 part-time employees. We seek to maintain a challenging, enriching, respectful, diverse, inclusive, collaborative and rewarding work environment for our employees whom we consider to be among our most valuable assets. We maintain policies and programs that we believe reflect our continued commitment to our employees, including:

•a competitive compensation program and benefits package.

•operational protocols which prioritize employee health, safety and well-being.

•promotion of diversity and inclusion in our hiring practices.

◦In 2021, approximately 33% of all new hires were females and approximately 46% of all new hires were ethnic minorities.

•training and career development opportunities and a tuition reimbursement program.

•regular assessment of the engagement, satisfaction and retention of our employees.

•programs such as internally organized affinity groups which are intended to foster an atmosphere of collaboration and inclusion.

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Environmental, Social, and Corporate Governance

We are steadfast in our commitment to maintaining and implementing environment, social, and governance ("ESG”) standards while driving value through continual improvement of our operations, portfolio performance, and community impact. Our reduction targets for energy, greenhouse gas emissions and water are to reduce consumption 15% by 2025 over our 2018 baseline.

In 2021, we earned the highest-level Governance score from ISS, continued to maintain an A rating from MSCI ESG Research, and received our seventh annual Global Real Estate Sustainability Benchmark (“GRESB”) Green Star ranking. We were also recognized as the most committed building owner in the Philadelphia 2030 District initiative to achieve substantial reduction in energy use by the year 2030. We have 11.5 million square feet of green building certifications across our portfolio.

With all the challenges over the last two years, Brandywine continues to proactively plan and work to provide safe spaces for tenants to return to the office while deepening our commitment and culture of giving back to the local community. Our volunteer efforts and financial contributions included over $20,000 collected by employees and matched by us to support 16 third-party employees in our extended family of vendors who were impacted by furloughs and layoffs. Through a meals program in partnership with several of our food and beverage tenants, we funded over 38,000 meals to Philadelphians in need. We also donated $350,000 to the Enterprise Center to launch the Grow Philadelphia Small Business COVID-19 Resilience Fund and provided a loan guarantee of $200,000 to the African American Chamber of Commerce to make low-interest loans available to Chamber members impacted by the COVID-19 pandemic and social unrest.

For further information regarding our environmental, social, and governance strategies and policies, please visit the “Responsibility” section of our website. The information contained on our website is not incorporated by reference into this Annual Report.

Item 1A.    Risk Factors

You should carefully consider these risk factors, together with all of the other information included in this Annual Report on Form 10-K, including our consolidated financial statements and the related notes thereto, before you decide whether to make an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, prospects, financial condition, cash flows, liquidity, funds from operations, results of operations, share price, ability to service our indebtedness, and/or ability to make cash distributions to our security holders (including those necessary to maintain our REIT qualification). In such case, the value of our common shares and the trading price of our securities could decline, and you may lose all or a significant part of your investment. Some statements in the following risk factors constitute forward looking statements. Please refer to the explanation of the qualifications and limitations on forward-looking statements under “Forward-Looking Statements” of this Form 10-K.

Economic Risk Factors

Adverse economic and geopolitical conditions could have a material adverse effect on our results of operations, financial condition and our ability to pay distributions to our shareholders.

Our business is affected by global, national and local economic conditions. Our portfolio consists primarily of office buildings (as compared to real estate companies with portfolios of multiple asset classes). Our financial performance and the value of our real estate assets, and consequently the value of our securities, are subject to the risk that if our properties do not generate revenues sufficient to meet our operating expenses, including debt service and capital expenditures, our cash flow, results of operations, financial condition and ability to make distributions to our security holders will be adversely affected. The following factors, among others, may materially and adversely affect the income generated by our properties and our performance generally:

•adverse changes in international, national or local economic and demographic conditions;

•increased vacancies or our inability to rent space on favorable terms, including market pressures to offer tenants rent abatements, increased tenant improvement packages, early termination rights, below market rental rates or below-market renewal options;

•significant job losses in the financial and professional services industries may occur, which may decrease demand for office space, causing market rental rates and property values to be negatively impacted;

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•changes in space utilization by our tenants due to technology, economic conditions, impact of pandemics, and business culture may decrease demand for office space, causing market rental rates and property values to be negatively impacted;

•deterioration in the financial condition of our tenants may result in tenant defaults under leases, including due to bankruptcy, and adversely impact our ability to collect rents from our tenants;

•competition from other office and mixed-use properties, and increased supply of such properties;

•increases in non-discretionary operating costs, including insurance expense, utilities, real estate taxes, state and local taxes, labor shortages and heightened security costs may not be offset by increased market rental rates;

•increases in operating costs due to inflation may not be offset by increased market rental rates;

•reduced values of our properties would limit our ability to dispose of assets at attractive prices, limit our access to debt financing secured by our properties and reduce the availability of unsecured loans;

•increases in interest rates, reduced availability of financing and reduced liquidity in the capital markets may adversely affect our ability or the ability of potential buyers of properties and tenants of properties to obtain financing on favorable terms, or at all;

•one or more lenders under our unsecured credit facility could refuse or be unable to fund their financing commitment to us and we may not be able to replace the financing commitment of any such lenders on favorable terms, or at all; and

•civil disturbances, earthquakes and other natural disasters, or terrorist acts or acts of war may result in uninsured or underinsured losses.

Our performance is dependent upon the economic conditions of the markets in which our properties are located.

Our results of operations will be significantly influenced by the economies and other conditions of the real estate markets in which we operate, particularly in Philadelphia, Pennsylvania, the suburbs of Philadelphia, Pennsylvania, Austin, Texas, Washington, D.C., Northern Virginia and Southern Maryland. Any adverse changes in economic conditions in any of these economies or real estate markets could negatively affect cash available for distribution and debt service. Our financial performance and ability to make distributions to our shareholders and pay debt service is particularly sensitive to the economic conditions in these markets. The local economic climate, which may be adversely impacted by business layoffs or downsizing, industry slowdowns, changing demographics and other factors, and local real estate conditions, such as demand for office space, operating expenses and real estate taxes, may affect revenues and the value of properties, including properties to be acquired or developed.

We may suffer adverse consequences due to the financial difficulties, bankruptcy or insolvency of our tenants.

Periodically, our tenants experience financial difficulties, including bankruptcy, insolvency or a general downturn in their business, and these difficulties may have an adverse effect on our cash flow, results of operations, financial condition and ability to make distributions to our shareholders. We cannot assure you that any tenant that files for bankruptcy protection will continue to pay us rent. A bankruptcy filing by or relating to one of our tenants or a lease guarantor would bar efforts by us to collect pre-bankruptcy debts from that tenant or lease guarantor, or its property, unless we receive an order permitting us to do so from the bankruptcy court. In addition, we cannot evict a tenant solely because of bankruptcy. The bankruptcy of a tenant or lease guarantor could delay our efforts to collect past due balances under the relevant leases, and could ultimately preclude collection of these sums. If a lease is assumed by the tenant in bankruptcy, all pre-bankruptcy balances due under the lease must be paid to us in full. If, however, a lease is rejected by a tenant in bankruptcy, we would have only a general, unsecured claim for damages. Any such unsecured claim would only be paid to the extent that funds are available and only in the same percentage as is paid to all other holders of general, unsecured claims. Restrictions under the bankruptcy laws further limit the amount of any other claims that we can make if a lease is rejected. As a result, it is likely that we would recover substantially less than the full value of the remaining rent during the term. See Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors that May Influence Future Results of Operations - Tenant Credit Risk.”

Real Estate Industry Risk Factors

We may experience increased operating costs, which might reduce our profitability.

Our properties are subject to increases in operating expenses such as for insurance, real estate taxes, cleaning, electricity, heating, ventilation and air conditioning, administrative costs and other costs associated with security, landscaping and repairs and maintenance of our properties. In general, our tenant leases allow us to pass through all or a portion of these costs to them. We cannot assure you, however, that tenants will actually bear the full burden of these increased costs, or that such

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increased costs will not lead them, or other prospective tenants, to seek office space elsewhere. If operating expenses increase, the availability of other comparable office space in our core geographic markets might limit our ability to increase rents; if operating expenses increase without a corresponding increase in revenues, our profitability could diminish and limit our ability to make distributions to shareholders.

Our investment in property development or redevelopment may be more costly or difficult to complete than we anticipate.

We intend to continue to develop properties where market conditions warrant such investment. Once made, these investments may not produce results in accordance with our expectations. Risks associated with our development and construction activities include:

•unavailability of favorable financing alternatives in the private and public debt markets;

•insufficient capital to pay development costs;

•limited experience in developing or redeveloping properties in certain of our geographic markets may lead us to incorrectly project development costs and returns on our investments;

•dependence on the financial, technology and professional services sector as part of our tenant base;

•construction costs exceeding original estimates due to rising interest rates, inflation, diminished availability of materials and labor, and increases in the costs of materials and labor;

•construction and lease-up delays resulting in increased debt service, fixed expenses and construction or renovation costs;

•expenditure of funds and devotion of management’s time to projects that we do not complete;

•occupancy rates and rents at newly completed properties may fluctuate depending on a number of factors, including market and economic conditions, resulting in lower than projected rental rates and a corresponding lower return on our investment;

•complications (including building moratoriums and anti-growth legislation) in obtaining necessary zoning, occupancy and other governmental permits; and

•increased use restrictions by local zoning or planning authorities limiting our ability to develop and impacting the size of developments.

See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors that May Influence Future Results of Operations - Development Risk.”

Our development projects and third party property management business may subject us to certain liabilities.

We may hire and supervise third party contractors to provide construction, engineering and various other services for wholly owned development projects, development projects undertaken by real estate ventures in which we hold an equity interest and manage or properties we are managing on behalf of unaffiliated third parties. Certain of these contracts may be structured such that we are the principal rather than the agent. As a result, we may assume liabilities in the course of the project and be subjected to, or become liable for, claims for construction defects, negligent performance of work or other similar actions by third parties we have engaged. Adverse outcomes of disputes or litigation could negatively impact our business, results of operations and financial condition, particularly if we have not limited the extent of the damages to which we may be liable, or if our liabilities exceed the amounts of the insurance that we carry. Moreover, our tenants and third party customers may seek to hold us accountable for the actions of contractors because of our role even if we have technically disclaimed liability as a legal matter, in which case we may determine it necessary to participate in a financial settlement for purposes of preserving the tenant or customer relationship.

Acting as a principal may also mean that we pay a contractor before we have been reimbursed, which exposes us to additional risks of collection in the event of a bankruptcy or insolvency. Similarly, a contractor may file for bankruptcy or commit fraud before completing a project that we have funded in part or in full. As part of our project management business, we are responsible for managing various contractors required for a project, including general contractors, in order to ensure that the cost of a project does not exceed the contract amount and that the project is completed on time. In the event that one or more of the contractors involved does not, or cannot, perform as a result of bankruptcy or for another reason, we may be responsible for cost overruns, as well as the consequences of late delivery. In the event that we have not accurately estimated our own costs of providing services under guaranteed cost contracts, we may be exposed to losses on such contracts.

Our development projects may be dependent on strategic alliances with unaffiliated third parties.

We may face challenges in managing our strategic alliances. As our development projects become more complex, the need for trust, collaboration, and equitable risk-sharing is essential to the success of these projects. The alliances we engage in are driven by the complementary skills and capabilities of our partners. Despite the diligence performed establishing these

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alliances, our objectives may not fully align with those of our partners throughout the development project or projects. Disagreements with one or more third parties with whom we partner in the development of one or more of the development components may restrict our ability to act exclusively in our own interests. In addition, failure of one or more third parties with whom we partner to fulfill obligations to us could result in delays and increased costs to us associated with finding a suitable replacement partner. Increased costs could require us to revise or abandon our activities entirely with respect to one or more components of the project and, in such event, we would not recover, and would be required to write-off, costs we had capitalized in development.

We face risks associated with the development of mixed-use commercial properties.

We operate, are currently developing, and may in the future develop, properties either alone or through real estate ventures that are known as “mixed-use” developments. In addition to the development of office space, mixed-use projects may also include space for life science/lab, residential, retail, hotel or other commercial purposes. If a development project consists of a non-office or non-retail use, we may seek to develop that component ourselves, assign the rights to that component to a third-party developer with experience in that use, or we may seek to partner with such a developer. If we do not assign the rights or partner with such a developer, or if we choose to develop the other component ourselves, we would be exposed not only to those risks typically associated with the development of properties for office and retail use generally, but also to specific risks associated with the development and ownership of non-office and non-retail real estate. In addition, even if we assign the rights to develop certain components or elect to participate in the development through a real estate venture, we may be exposed to the risks associated with the failure of the other party to complete the development as expected. These include the risk that the other party would default on its obligations, necessitating that we complete the other component ourselves (including providing any necessary financing). In the case of residential properties, these risks also include competition for prospective residents from other operators whose properties may be perceived to offer a better location or better amenities or whose rent may be perceived as a better value given the quality, location and amenities that the resident seeks. Because we have limited experience with residential properties, we expect to retain third parties to manage our residential properties. In the case of hotel properties, the risks also include increases in inflation and utilities that may not be offset by increases in room rates. We are also dependent on business and commercial travelers and tourism. If we decide not to sell or participate in a real estate venture and instead hire a third party manager, we would be dependent on their key personnel to provide services on our behalf and we may not find a suitable replacement if the management agreement is terminated, or if key personnel leave or otherwise become unavailable to us.

We face risks associated with property acquisitions.

We have acquired in the past and intend to continue to pursue the acquisition of properties, including large portfolios that would increase our size and potentially alter our capital structure. The success of such transactions is subject to a number of factors, including the risks that:

•we may not be able to obtain financing for such acquisitions on favorable terms;

•acquired properties may fail to perform as expected;

•even if we enter into an acquisition agreement for a property, we may be unable to complete that acquisition after making a non-refundable deposit and incurring certain other acquisition-related costs;

•the actual costs of repositioning, redeveloping or maintaining acquired properties may be higher than our estimates;

•the acquired properties may be located in new markets where we may have limited knowledge and understanding of the local economy, an absence of business relationships in the area or unfamiliarity with local governmental and permitting procedures; and

•we may not be able to efficiently integrate acquired properties, particularly portfolios of properties, into our organization and manage new properties in a way that allows us to realize anticipated cost savings and synergies.

Acquired properties may subject us to known and unknown liabilities.

Properties that we acquire may be subject to known and unknown liabilities for which we would have no recourse, or only limited recourse, to the former owners of such properties or otherwise. As a result, if a liability were asserted against us based upon ownership of acquired property, we might be required to pay significant sums to settle it, which could adversely affect our financial results and cash flow. Unknown liabilities relating to acquired properties could include:

•liabilities for clean-up of pre-existing disclosed or undisclosed environmental contamination;

•claims by tenants, vendors, municipalities or other persons arising on account of actions or omissions of the former owners or occupants of the properties; and

•liabilities incurred in the ordinary course of business.

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We have agreed not to sell certain of our properties and to maintain indebtedness subject to guarantees.

We acquired in the past and in the future may acquire properties or portfolios of properties through tax deferred contribution transactions in exchange for partnership interests in our Operating Partnership. This acquisition structure has the effect, among other factors, of reducing the amount of tax depreciation we can deduct over the tax life of the acquired properties, and typically requires that we agree to protect the contributors’ ability to defer recognition of taxable gain through restrictions on our ability to dispose of the acquired properties and/or the allocation of partnership debt to the contributors to maintain their tax bases. We have agreed not to sell some of our properties for varying periods of time, in transactions that would trigger taxable income to the former owners, and we may enter into similar arrangements as a part of future property acquisitions. These agreements generally provide that we may dispose of the subject properties only in transactions that qualify as tax-free exchanges under Section 1031 of the Internal Revenue Code or in other tax deferred transactions. Such transactions can be difficult to complete and can result in the property acquired in exchange for the disposed of property inheriting the tax attributes (including tax protection covenants) of the sold property. Violation of such tax protection agreements may impose significant costs on us. As a result, we are restricted with respect to decisions related to financing, encumbering, expanding or selling these properties. These restrictions on dispositions could limit our ability to sell an asset or pay down partnership debt during a specified time, or on terms, that would be favorable absent such restrictions.

We have also entered into agreements that provide prior owners of properties with the right to guarantee specific amounts of indebtedness and, in the event that the specific indebtedness that they guarantee is repaid or reduced, we would be required to provide substitute indebtedness for them to guarantee. These agreements may hinder actions that we may otherwise desire to take to repay or refinance guaranteed indebtedness because we would be required to make payments to the beneficiaries of such agreements if we violate these agreements.

We may be unable to renew leases or re-lease space as leases expire; certain leases may expire early.

If tenants do not renew their leases upon expiration, we may be unable to re-lease the space. Even if the tenants do renew their leases or if we can re-lease the space, the terms of renewal or re-leasing (including the cost of required renovations) may be less favorable than the current lease terms. Certain leases grant the tenants an early termination right upon payment of a termination penalty or if we fail to comply with certain material lease terms. Our inability to renew or release spaces and the early termination of certain leases could adversely affect our ability to make distributions to shareholders. See Item 7., “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Factors that May Influence Future Results of Operations - Tenant Rollover Risk.”

We face significant competition from other real estate developers.

We compete with real estate developers, operators and institutions for tenants and acquisition and development opportunities. Some of these competitors may have significantly greater financial resources than we have. Such competition may reduce the number of suitable investment opportunities available to us, may interfere with our ability to attract and retain tenants and may increase vacancies, which could result in increased supply and lower market rental rates, reducing our bargaining leverage and adversely affect our ability to improve our operating leverage. In addition, some of our competitors may be willing (e.g., because their properties may have vacancy rates higher than those for our properties) to make space available at lower rental rates or with higher tenant concession percentages than available space in our properties. We cannot assure you that this competition will not adversely affect our cash flow and our ability to make distributions to shareholders.

Property ownership through unconsolidated real estate ventures may limit our ability to act exclusively in our interest.

We develop, acquire, and contribute properties in unconsolidated real estate ventures with other persons or entities when we believe circumstances warrant the use of such structures. For information regarding our unconsolidated real estate ventures, see Note 4, ''Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements. We could become engaged in a dispute with one or more of our venture partners that might affect our ability to operate a jointly-owned property. Moreover, our venture partners may, at any time, have business, economic or other objectives that are inconsistent with our objectives, including objectives that relate to the appropriate timing and terms of any sale or refinancing of a property. In some instances, our venture partners may have competing interests in our markets that could create conflicts of interest. If the objectives of our venture partners or the lenders to our unconsolidated real estate ventures are inconsistent with our own objectives, we may not be able to act exclusively in our interests and the value of our investment in the unconsolidated real estate ventures may be affected.

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Preferred equity, mezzanine loans, and other investments that are subordinated or otherwise junior in an issuer’s capital structure and that involve privately negotiated structures will expose us to greater risk of loss.

We may have made preferred equity investments and may in the future make or acquire additional preferred equity investments, mezzanine loans and other investments that are subordinated or otherwise junior in an issuer’s capital structure and that involve privately negotiated structures. To the extent we invest in subordinated debt or mezzanine tranches of an entity’s capital structure, or in preferred equity instruments, such investments and our remedies with respect thereto, including the ability to foreclose on collateral (if any) securing such investments, will be subject to the rights of holders of more senior tranches in the issuer’s capital structure and, to the extent applicable, contractual intercreditor, co-lender and/or participation agreement provisions. Significant losses related to such investments or loans could adversely affect our results of operations and financial condition.

Because real estate is illiquid, we may be unable to sell properties when in our best interest.

Real estate investments generally, and in particular large office and mixed use properties like those that we own, often cannot be sold quickly. The capitalization rates at which properties may be sold could be higher than historical rates, thereby reducing our potential proceeds from sale. Consequently, we may not be able to alter our portfolio promptly in response to changes in economic or other conditions. In addition, the Internal Revenue Code limits our ability, as a REIT, to sell properties that we have held for fewer than two years without potential adverse consequences to us. Furthermore, properties that we have developed and have owned for a significant period of time or that we acquired in exchange for partnership interests in the Operating Partnership often have a low tax basis. If we were to dispose of any of these properties in a taxable transaction, we may be required under provisions of the Internal Revenue Code applicable to REITs to distribute a significant amount of the taxable gain to our shareholders and this could, in turn, impact our cash flow. In some cases, tax protection agreements with third parties will prevent us from selling certain properties in a taxable transaction without incurring substantial costs. In addition, purchase options and rights of first refusal held by tenants or partners in unconsolidated real estate ventures may also limit our ability to sell certain properties. All of these factors reduce our ability to respond to changes in the performance of our investments and could adversely affect our cash flow and ability to make distributions to shareholders as well as the ability of someone to purchase us, even if a purchase were in our shareholders’ best interests.

Our property taxes could increase due to property tax rate changes or reassessment, which would adversely impact our cash flows.

Even if we continue to qualify as a REIT for federal income tax purposes, we will be required to pay some state and local taxes on our properties. The real property taxes on our properties may increase as property tax rates change or as our properties are assessed or reassessed by taxing authorities. If the property taxes we pay increase, our cash flow would be adversely impacted, and our ability to pay any expected dividends to our stockholders and unitholders could be adversely affected.

Regulatory Risk Factors

Changes in tax rates and regulatory requirements may adversely affect our cash flow and results of operations.

Because increases in income and service taxes are generally not passed through to tenants under leases, such increases may adversely affect our cash flow and ability to make expected distributions to shareholders. Our properties are also subject to various regulatory requirements, such as those relating to the environment, fire and safety. Our failure to comply with these requirements could result in the imposition of fines and damage awards and could result in a default under some of our tenant leases. Moreover, the costs to comply with any new or different regulations could adversely affect our cash flow and our ability to make distributions to shareholders. We cannot assure you that these requirements will not change or that newly imposed conditions will not require significant expenditures in order to be compliant.

Potential liability for environmental contamination could result in substantial costs.

Under various federal, state and local laws, ordinances and regulations, we may be liable for the costs to investigate and remove or remediate hazardous or toxic substances on or in our properties, often regardless of whether we know of or are responsible for the presence of these substances. These costs may be substantial. While we do maintain environmental insurance, we cannot be assured that our insurance coverage will be sufficient to protect us from all of the aforesaid

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remediation costs. Also, if hazardous or toxic substances are present on a property, or if we fail to adequately remediate such substances, our ability to sell or rent the property or to borrow using that property as collateral may be adversely affected.

Other laws and regulations govern indoor and outdoor air quality including those that can require the abatement or removal of asbestos-containing materials in the event of damage, demolition, renovation or remodeling and also govern emissions of and exposure to asbestos fibers in the air. The maintenance and removal of lead paint and certain electrical equipment containing polychlorinated biphenyls (PCBs) and underground storage tanks are also regulated by federal and state laws. We are also subject to risks associated with human exposure to chemical or biological contaminants such as molds, pollens, viruses and bacteria which, above certain levels, can be alleged to be connected to allergic or other health effects and symptoms in susceptible individuals. We could incur fines for environmental compliance and be held liable for the costs of remedial action with respect to the foregoing regulated substances or tanks or related claims arising out of environmental contamination or human exposure to contamination at or from our properties.

Additionally, we develop, manage, lease and/or operate various properties for third parties. Consequently, we may be considered to have been or to be an operator of these properties and, therefore, potentially liable for removal or remediation costs or other potential costs that could relate to hazardous or toxic substances.

Americans with Disabilities Act compliance could be costly.

The Americans with Disabilities Act of 1990, or the ADA, requires that all public accommodations and commercial facilities, including office buildings, meet certain federal requirements related to access and use by disabled persons. Compliance with ADA requirements could involve the removal of structural barriers from certain disabled persons’ entrances which could adversely affect our financial condition and results of operations. Other federal, state and local laws may require modifications to or restrict further renovations of our properties with respect to such accesses. Noncompliance by us with the ADA or similar or related laws or regulations could result in the imposition on us of governmental fines or in awards of damages against us in favor of private litigants. In addition, changes to existing requirements or enactments of new requirements could require significant expenditures. Such costs may adversely affect our cash flow and ability to make distributions to shareholders.

Disaster Risk Factors

A pandemic, epidemic or outbreak of a contagious disease, such as the ongoing COVID-19 pandemic, could adversely affect us.

Pandemics, epidemics, and other public health crises, including the ongoing COVID-19 pandemic, have impacted, and could continue to impact many countries around the globe, including the U.S. The COVID-19 pandemic’s long-term impact on global economies, financial markets, and the job market remain uncertain and could result in prolonged economic downturns and recessions that adversely impact us and our tenants. The global impact of the outbreak has been rapidly evolving and the responses of many countries, including the U.S., have included quarantines, restrictions on business activities, including construction activities, restrictions on group gatherings, and restrictions on travel. These actions are creating disruption in the global economy and supply chains and adversely impacting many industries, including owners and developers of office and mixed-use buildings. Moreover, there is significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. economy and consumer confidence. Demand for space at our properties is dependent on a variety of macroeconomic factors, such as employment levels, interest rates, changes in stock market valuations, rent levels and availability of competing space. These factors can be significantly adversely affected by a variety of factors beyond our control. The extent to which the COVID-19 pandemic impacts our results will depend on future developments, many of which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, new variants of COVID-19 and the actions taken to contain it or treat its impact. The impact of the COVID-19 pandemic could negatively impact our business in a number of ways, including: (i) deterioration in the financial condition of our tenants and in their ability to pay rents; (ii) reduction in demand for space in our portfolio; (iii) costs associated with construction delays and cost overruns at our development and redevelopment projects; (iv) costs associated with higher inflation rates; (v) reduction in availability of, and increased costs of, capital; and (vi) failure of our contract counterparties, including partners in unconsolidated real estate ventures, to meet their obligations. The ongoing situation presents material uncertainty and risk and could have a material adverse effect on our business, results of operations, cash flows and financial condition.

We face possible risks associated with the physical effects of climate change. 

The physical effects of climate change could have a material adverse effect on our properties, operations and business. For example, many of our properties are located along the East Coast, particularly those in the central business districts of

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Philadelphia, Pennsylvania and Washington, D.C. To the extent climate change causes variations in weather patterns, our markets could experience increases in storm intensity and rising sea-levels. Over time, these conditions could result in declining demand for office space in our buildings or our inability to operate the buildings at all. Climate change may also have indirect effects on our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and increasing the cost of snow removal at our properties. While we maintain insurance coverage for flooding, we may not have adequate insurance to cover the associated costs of repair or reconstruction of sites for a major future event, lost revenue, including from new tenants that could have been added to our properties but for the event, or other costs to remediate the impact of a significant event. There can be no assurance that climate change will not have a material adverse effect on our properties, operations or business.

REIT Risk Factors

Failure to qualify as a REIT would subject us to U.S. federal income tax which would reduce the cash available for distribution to our shareholders.

We operate our business to qualify to be taxed as a REIT for federal income tax purposes. We have not requested and do not plan to request a ruling from the IRS that we qualify as a REIT, and the statements in this Report are not binding on the IRS or any court. As a REIT, we generally will not be subject to federal income tax on the income that we distribute currently to our shareholders. Many of the REIT requirements, however, are highly technical and complex. The determination that we are a REIT requires an analysis of various factual matters and circumstances that may not be entirely within our control. For example, to qualify as a REIT, at least 95% of our gross income must come from specific passive sources, such as rent, that are itemized in the REIT tax laws. In addition, to qualify as a REIT, we cannot own specified amounts of debt and equity securities of some issuers. We also are required to distribute to our shareholders with respect to each year at least 90% of our REIT taxable income (excluding net capital gains). The fact that we hold substantially all of our assets through the Operating Partnership and its subsidiaries and unconsolidated real estate ventures further complicates the application of the REIT requirements for us. Even a technical or inadvertent mistake could jeopardize our REIT status and, given the highly complex nature of the rules governing REITs and the ongoing importance of factual determinations, we cannot provide any assurance that we will continue to qualify as a REIT. Changes to rules governing corporate taxation, including REITs, were made by legislation commonly known as the Tax Cuts and Jobs Act (the “TCJA”) and the Protecting Americans From Tax Hikes Act of 2015, signed into law on December 22, 2017 and December 18, 2015, respectively. Congress and the IRS might make further changes to the tax laws and regulations, and the courts might issue new rulings or interpretations of tax law, that make it more difficult, or impossible, for us to remain qualified as a REIT. If we fail to qualify as a REIT for federal income tax purposes and are able to avail ourselves of one or more of the statutory savings provisions in order to maintain our REIT status, we would nevertheless be required to pay penalty taxes of $50,000 or more for each such failure.

If we fail to qualify as a REIT for federal income tax purposes, and are unable to avail ourselves of certain savings provisions set forth in the Internal Revenue Code, we would be subject to federal income tax at regular corporate rates on all of our income. As a taxable corporation, we would not be allowed to take a deduction for distributions to shareholders in computing our taxable income or pass through long term capital gains to individual shareholders at favorable rates. For tax years beginning before January 1, 2018, we also could be subject to the federal alternative minimum tax and possibly increased state and local taxes. We would not be able to elect to be taxed as a REIT for four years following the year we first failed to qualify unless the IRS were to grant us relief under certain statutory provisions. If we failed to qualify as a REIT, we would have to pay significant income taxes, which would reduce our net earnings available for investment or distribution to our shareholders. This likely would have a significant adverse effect on our earnings and likely would adversely affect the value of our securities. In addition, we would no longer be required to pay any distributions to shareholders.

Failure of the Operating Partnership (or a subsidiary partnership or unconsolidated real estate venture) to be treated as a partnership would have serious adverse consequences to our shareholders.

If the IRS were to successfully challenge the tax status of the Operating Partnership or any of its subsidiary partnerships or unconsolidated real estate ventures for federal income tax purposes, the Operating Partnership or the affected subsidiary partnership or unconsolidated real estate venture would be taxable as a corporation. In such event, we would cease to qualify as a REIT and the imposition of a corporate tax on the Operating Partnership, subsidiary partnership or unconsolidated real estate venture would reduce the amount of cash available for distribution from the Operating Partnership to us and ultimately to our shareholders.

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To maintain our REIT status, we may be forced to borrow funds on a short-term basis during unfavorable market conditions.

As a REIT, we are subject to certain distribution requirements, including the requirement to distribute 90% of our REIT taxable income. These requirements may result in our having to make distributions at a disadvantageous time or to borrow funds at unfavorable rates. Compliance with this requirement may hinder our ability to operate solely on the basis of maximizing profits.

We may pay some taxes even if we qualify as a REIT, which will reduce the cash available for distribution to our shareholders.

Even if we qualify as a REIT for federal income tax purposes, we may be required to pay certain federal, state and local taxes on our income and properties. For example, we will be subject to income tax to the extent we distribute less than 100% of our REIT taxable income, including capital gains. Additionally, we will be subject to a 4% nondeductible excise tax on the amount, if any, by which dividends paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. Moreover, if we have net income from “prohibited transactions,” that income will be subject to a 100% penalty tax. In general, prohibited transactions are sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale or series of sales is/are a prohibited transaction depends on the facts and circumstances related to that sale. We cannot guarantee that sales of our properties would not be prohibited transactions unless we comply with certain statutory safe-harbor provisions.

In addition, any net taxable income earned directly by our taxable REIT subsidiaries, or through entities that are disregarded for federal income tax purposes as entities separate from our taxable REIT subsidiaries, will be subject to federal and possibly state corporate income tax. In this regard, several provisions of the laws applicable to REITs and their subsidiaries ensure that a taxable REIT subsidiary will be subject to an appropriate level of federal income taxation. For example, a taxable REIT subsidiary is limited in its ability to deduct certain interest payments made to an affiliated REIT. In addition, the REIT has to pay a 100% penalty tax on some payments that it receives or on some deductions taken by a taxable REIT subsidiary if the economic arrangements between the REIT, the REIT’s customers, and the taxable REIT subsidiary are not comparable to similar arrangements between unrelated parties. Finally, even if we continue to qualify as a REIT for federal income tax purposes, we will be required to pay some state and local real property taxes on our properties, and some state and local jurisdictions may tax some of our income even though as a REIT we are not subject to federal income tax on that income because not all states and localities follow the federal income tax treatment of REITs. To the extent that we and our affiliates are required to pay federal, state and local taxes, we will have less cash available for distributions to our shareholders.

Legislation that modifies the rules applicable to partnership tax audits may affect us.

The Bipartisan Budget Act of 2015, effective for taxable years beginning after December 31, 2017, requires our operating partnership and any subsidiary partnership to pay the hypothetical increase in partner-level taxes (including interest and penalties) resulting from an adjustment of partnership tax items on audit or in other tax proceedings, unless the partnership elects an alternative method under which the taxes resulting from the adjustment (and interest and penalties) are assessed at the partner level. Uncertainties remain as to the application of these rules, including the application of the alternative method to partners that are REITs, and the impact they will have on us. However, it is possible, that partnerships in which we invest may be subject to U.S. federal income tax, interest and penalties in the event of a U.S. federal income tax audit as a result of these law changes.

Legislative or regulatory tax changes related to REITs could materially and adversely affect our business.

At any time, the federal income tax laws or regulations governing REITs or the other administrative interpretations of those laws or regulations may be changed, possibly with retroactive effect. We cannot predict if or when any new federal income tax law, regulation or administrative interpretation, or any amendment to any existing federal income tax law, regulation or administrative interpretation, will be adopted, promulgated or become effective or whether any such law, regulation or interpretation may take effect retroactively. We and our shareholders could be adversely affected by any such change in, or any new, federal income tax law, regulation or administrative interpretation.

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If a transaction intended to qualify as a Section 1031 Exchange is later determined to be taxable, or if we are unable to identify and complete the acquisition of suitable replacement property to effect a Section 1031 Exchange, we may face adverse consequences.

From time to time we seek to dispose of properties in transactions that are intended to qualify as tax-deferred “like kind exchanges” under Section 1031 of the Internal Revenue Code of 1986, as amended (a “Section 1031 Exchange”). It is possible that the qualification of a transaction as a Section 1031 Exchange could be successfully challenged and determined to be currently taxable. It is also possible that we are unable to identify and complete the acquisition of suitable replacement property to effect a Section 1031 Exchange. In any such case, our taxable income and earnings and profits would increase. This could increase the dividend income to our shareholders by reducing any return of capital they received. In some circumstances, we may be required to pay additional dividends or, in lieu of that, corporate income tax, possibly including interest and penalties. As a result, we may be required to borrow funds in order to pay additional dividends or taxes, and the payment of such taxes could cause us to have less cash available to distribute to our shareholders. In addition, if a Section 1031 Exchange were later to be determined to be taxable, we may be required to amend our tax returns for the applicable year in question, including any information reports we sent our shareholders. Moreover, it is possible that legislation could be enacted that could modify or repeal the laws with respect to Section 1031 Exchanges, which could make it more difficult or not possible for us to dispose of properties on a tax deferred basis.

Failure to obtain the tax benefits and remain compliant within Qualified Opportunity Zones and Keystone Opportunity Zones may have adverse consequences.

Certain of our properties have the benefit of governmental tax incentives for development in areas and neighborhoods which have not historically seen robust commercial development. These incentives typically have specific sunset provisions and may be subject to governmental discretion in the eligibility or award of the applicable incentives. We invest and plan to continue to heavily invest in Qualified Opportunity Zones as part of the federal program and Keystone Opportunity Zones in Pennsylvania due to the related tax benefits. The expiration of these incentive programs or the inability of potential tenants or users to be eligible for or to obtain governmental approval of the incentives may have an adverse effect on the value of our Properties and on our cash flow and net income, and may result in impairment charges. In addition, the failure to remain compliant with such programs may result in significant tax burdens.

Certain limitations will exist with respect to a third party’s ability to acquire us or effectuate a change in control.

Limitations imposed to protect our REIT status. In order to protect us against the loss of our REIT status, our Declaration of Trust limits any shareholder from owning more than 9.8% in value of our outstanding shares, although we have granted in the past, and may continue to grant in the future certain waivers of this limitation to certain shareholders under certain conditions. The ownership limit may have the effect of precluding acquisition of control of us. If anyone acquires shares in excess of the ownership limit, we may:

•consider the transfer to be null and void;

•not reflect the transaction on our books;

•institute legal action to stop the transaction;

•not pay dividends or other distributions with respect to those shares;

•not recognize any voting rights for those shares; and

•consider the shares held in trust for the benefit of a person to whom such shares may be transferred.

Limitation due to our ability to issue preferred shares. Our Declaration of Trust authorizes our Board of Trustees to cause us to issue preferred shares, without limitation as to amount and without shareholder consent. Our Board of Trustees is able to establish the preferences and rights of any preferred shares issued and these shares could have the effect of delaying or preventing someone from taking control of us, even if a change in control were in our shareholders’ best interests.

Advance Notice Provisions for Shareholder Nominations and Proposals. Our bylaws require advance notice for shareholders to nominate persons for election as trustees at, or to bring other business before, any meeting of our shareholders. This bylaw provision limits the ability of shareholders to make nominations of persons for election as trustees or to introduce other proposals unless we are notified in a timely manner prior to the meeting.

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General Risk Factors

We are dependent upon our key personnel.

We are dependent upon our key personnel, particularly Gerard H. Sweeney - President and Chief Executive Officer, Thomas Wirth - Executive Vice President and Chief Financial Officer, Jeffrey DeVuono - Executive Vice President and Senior Managing Director, William Redd – Executive Vice President and Senior Managing Director and George Johnstone - Executive Vice President, Operations. Among the reasons that Messrs. Sweeney, Wirth, DeVuono, Redd and Johnstone are important to our success is that each has a favorable reputation, which attracts business and investment opportunities and assists us in negotiations with lenders, unconsolidated real estate venture partners and other investors. If we lost their services, our relationships with lenders, potential tenants and industry personnel could be affected. We are dependent on our other executive officers for strategic business direction and real estate experience. Loss of their services could adversely affect our operations.

Our ability to make distributions is subject to various risks.

Historically, we have paid quarterly distributions to our shareholders. Our ability to make distributions in the future will depend upon:

•the operational and financial performance of our properties;

•capital expenditures with respect to existing, developed and newly acquired properties;

•the amount of, and the interest rates on, our debt;

•capital needs of our unconsolidated real estate ventures;

•general and administrative costs associated with our operation as a publicly-held REIT; and

•the absence of significant expenditures relating to environmental and other regulatory matters.

Certain of these matters are beyond our control and any adverse changes could have a material adverse effect on our cash flow and our ability to make distributions to shareholders.

We face possible federal, state and local tax audits.

Because we are organized and qualify as a REIT, we are generally not subject to federal income taxes, but are subject to certain state and local taxes. Certain entities through which we own real estate have undergone tax audits. There can be no assurance that future audits will not have a material adverse effect on our results of operations.

Many factors can have an adverse effect on the market value of our securities.

A number of factors might adversely affect the price of our securities, many of which are beyond our control. These factors include:

•increases in market interest rates, relative to the dividend yield on our securities. If market interest rates go up, prospective purchasers of our securities may require a higher yield. Higher market interest rates would not, however, result in more funds for us to distribute and, to the contrary, would likely increase our borrowing costs and potentially decrease funds available for distribution. Thus, higher market interest rates could cause the market price of our common shares to go down;

•anticipated benefit of an investment in our securities as compared to investment in securities of companies in other industries (including benefits associated with the tax treatment of dividends and distributions);

•perception by market professionals of REITs generally and REITs comparable to us in particular;

•level of institutional investor interest in our securities;

•relatively low trading volumes in securities of REITs;

•our results of operations and financial condition; and

•investor confidence in the stock market generally.

The market value of our common shares is based primarily upon the market’s perception of our growth potential and our current and potential future earnings and cash distributions. Consequently, our common shares may trade at prices that are higher or lower than our net asset value per common share. If our future earnings or cash distributions are less than expected, it is likely that the market price of our common shares will diminish.

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Additional issuances of equity securities may be dilutive to shareholders.

The interests of our shareholders could be diluted if we issue additional equity securities to finance future developments or acquisitions or to repay indebtedness. Our Board of Trustees may authorize the issuance of additional equity securities without shareholder approval. In addition, in the past we have maintained a continuous offering program, which, when such program was effective, allowed us to issue shares in at-the-market offerings. We may in the future enter into a similar continuous offering program. Our ability to execute our business strategy depends upon our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including the issuance of common and preferred equity.

The issuance of preferred securities may adversely affect the rights of holders of our common shares.

Because our Board of Trustees has the power to establish the preferences and rights of each class or series of preferred shares, we may afford the holders in any series or class of preferred shares preferences, distributions, powers and rights, voting or otherwise, senior to the rights of holders of common shares. Our Board of Trustees also has the power to establish the preferences and rights of each class or series of units in the Operating Partnership, and may afford the holders in any series or class of preferred units preferences, distributions, powers and rights, voting or otherwise, senior to the rights of holders of common units.

We may incur impairment charges.

We evaluate on a quarterly basis our real estate portfolios for indicators of impairment. Impairment charges reflect management's judgment of the probability and severity of the decline in the value of real estate assets and investments we own. These charges and provisions may be required in the future as a result of factors beyond our control, including, among other things, changes in our expected holding periods, changes in the economic environment and market conditions affecting the value of real property assets or natural or man-made disasters. If we are required to take impairment charges, our results of operations could be adversely impacted.

An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt or sell assets on favorable terms or at all.

Rising interest rates could limit our ability to refinance existing debt when it matures or significantly increase our future interest expense. From time to time, we enter into interest rate swap agreements and other interest rate hedging contracts. While these agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risk that the other parties to the agreements will not perform, we could incur significant costs associated with the settlement or termination of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly-effective cash flow hedges under the applicable accounting guidance. In addition, an increase in interest rates could decrease the amounts third parties are willing or able to pay for our assets, thereby limiting our ability to recycle capital and change our portfolio promptly in response to changes in economic or other conditions.

Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our equity shares or debt securities.

Our organizational documents do not contain any limitation on the amount of indebtedness we may incur. We are subject to risks associated with debt financing, such as the insufficiency of cash flow to meet required debt service payment obligations and the inability to refinance existing indebtedness. If our debt cannot be paid, refinanced or extended at maturity, we may not be able to make distributions to shareholders at expected levels or at all. Furthermore, an increase in our interest expense could adversely affect our cash flow and ability to make distributions to shareholders. If we do not meet our debt service obligations, any properties securing such indebtedness could be foreclosed on, which would have a material adverse effect on our cash flow and ability to make distributions and, depending on the number of properties foreclosed on, could threaten our continued viability. Our degree of leverage could also make us more vulnerable to a downturn in business or the economy in general.

The terms and covenants relating to our indebtedness could adversely impact our economic performance.

Our credit facilities, term loans and the indenture governing our unsecured public debt securities contain (and any new or amended facility and term loans may contain) restrictions, requirements and other limitations on our ability to incur

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indebtedness, including total debt to asset ratios, secured debt to total asset ratios, debt service coverage ratios and minimum ratios of unencumbered assets to unsecured debt which we must maintain. Our ability to borrow under our credit facilities is subject to compliance with such financial and other covenants. In the event that we fail to satisfy these covenants, we would be in default under the credit facilities, the term loans and the indenture and may be required to repay such debt with capital from other sources. Under such circumstances, other sources of capital may not be available to us, or may be available only at unattractive terms. In addition, the mortgages on our properties, including mortgages encumbering our unconsolidated real estate ventures, contain customary covenants such as those that limit our ability, without the prior consent of the lender, to further mortgage the applicable property or to discontinue insurance coverage. If we breach covenants in our secured debt agreements, the lenders can declare a default and take possession of the property securing the defaulted loan.

A downgrading of our debt could subject us to higher borrowing costs.

In the event that our unsecured debt is downgraded by Moody’s Investor Services or Standard & Poor’s from the current ratings, we would likely incur higher borrowing costs and the market prices of our common shares and debt securities might decline.

Discontinuation of the London interbank offered rate and transition to an alternative benchmark could adversely affect our operating results

In March 2021, the Chief Executive of the U.K. Financial Conduct Authority (the “FCA”), which regulates the London interbank offered rate (“LIBOR”), announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of the LIBOR benchmark after June 30, 2023. Changes in, or the planned discontinuation of, LIBOR would cause changes in how interest is calculated on our variable rate debt as our variable rate debt is indexed to LIBOR. There can be no assurances as to what alternative interest rates may be and whether such interest rates, such as the Secured Overnight Financing Rate ("SOFR"), will be more or less favorable than LIBOR. Any other unforeseen impacts of the potential discontinuation of LIBOR could have a negative impact on our results of operations and our variable rate debt.

Data security breaches may cause damage to our business and reputation.

In the ordinary course of our business, we maintain sensitive data, including our proprietary business information and the information of our tenants and business partners, in our data centers and on our networks. The risk of a security breach or disruption, mainly through cyber-attack or cyber intrusion, including by computer hackers, foreign governments and cyber terrorists, has generally increased in number, intensity and sophistication. Notwithstanding the security measures undertaken, our information technology may be vulnerable to attacks or breaches resulting in proprietary information being publicly disclosed, lost or stolen. There can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging. Protected information, networks, systems and facilities remain vulnerable because the techniques used in such attempted security breaches evolve and may not be recognized or detected until launched against a target. Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures.

Data and security breaches could:

•disrupt the proper functioning of our networks and systems and therefore our operations and/or those of our client tenants;

•result in misstated financial reports, violations of loan covenants, missed reporting deadlines, and/or missed permitting deadlines;

•result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT;

•result in the unauthorized access to, and destruction, loss, theft, misappropriation, or release of proprietary, confidential, sensitive, or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive, or otherwise harmful purposes and outcomes;

•result in our inability to maintain the building systems relied upon by our client tenants for the efficient use of their leased space;

•require significant management attention and resources to remedy any damages that result;

•subject us to claims and lawsuits for breach of contract, damages, credits, penalties, or termination of leases or other agreements; and/or

•damage our reputation among our client tenants and investors generally.

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While we maintain insurance coverage that may, subject to policy terms and conditions including deductibles, cover specific aspects of cyber risks, such insurance coverage may be insufficient to cover all losses.

Third parties to whom we outsource certain of our functions are also subject to the risks outlined above. We review and assess the cybersecurity controls of our third party service providers and vendors, as appropriate, and make changes to our business processes to manage these risks. Data breaches and/or the insolvency of such third parties and vendors may result in us incurring costs and may have other negative consequences.

Terrorist attacks and other acts of violence or war may adversely impact our performance and may affect the markets on which our securities are traded.

Terrorist attacks against our properties, or against the United States or our interests, may negatively impact our operations and the value of our securities. Attacks or armed conflicts could result in increased operating costs; for example, it might cost more in the future for building security, property and casualty insurance, and property maintenance. As a result of terrorist activities and other market conditions, the cost of insurance coverage for our properties could also increase. In addition, our insurance policies may not recover all of our property replacement costs and lost revenue resulting from an attack. We might not be able to pass through the increased costs associated with such increased security measures and insurance to our tenants, which could reduce our profitability and cash flow. Furthermore, any terrorist attacks or armed conflicts could result in increased volatility in or damage to the United States and worldwide financial markets and economy. Such adverse economic conditions could affect the ability of our tenants to pay rent and our cost of capital, which could have a negative impact on our results.

Some potential losses are not covered by insurance.

We currently carry property insurance against all-risks of physical loss or damage (unless otherwise excluded in the policy) including time element and commercial general liability coverage on all of our properties. There are, however, types of losses, such as lease and other contract claims, biological, radiological and nuclear hazards and acts of war that generally are not insured. We cannot assure you that we will be able to renew insurance coverage in an adequate amount or at reasonable prices. In addition, insurance companies may no longer offer coverage against certain types of losses, such as losses due to earthquakes, terrorist acts and mold, flood, or, if offered, these types of insurance may be prohibitively expensive. Should an uninsured loss or a loss in excess of insured limits occur, we could lose all or a portion of the capital we have invested in a property, as well as the anticipated future revenue from the property. In such an event, we might nevertheless remain obligated for any mortgage debt or other financial obligations related to the property. We cannot assure you that material losses in excess of insurance proceeds will not occur in the future. If any of our properties were to experience a catastrophic loss, it could seriously disrupt our operations, delay revenue and result in large expenses to repair or rebuild the property. Such events could adversely affect our cash flow and ability to make distributions to shareholders. If one or more of our insurance providers were to fail to pay a claim as a result of insolvency, bankruptcy or otherwise, the nonpayment of such claims could have an adverse effect on our financial condition and results of operations. In addition, if one or more of our insurance providers were to become subject to insolvency, bankruptcy or other proceedings and our insurance policies with the provider were terminated or cancelled as a result of those proceedings, we cannot guarantee that we would be able to find alternative coverage in adequate amounts or at reasonable prices. In such case, we could experience a lapse in any or adequate insurance coverage with respect to one or more properties and be exposed to potential losses relating to any claims that may arise during such period of lapsed or inadequate coverage.

In addition to property and casualty insurance, we use a combination of insurance products, some of which include deductibles and self-insured retention amounts, to provide risk mitigation for the potential liabilities associated with various liabilities, including workers’ compensation, general contractors, directors and officers and employee health-care benefits. Liabilities associated with the risks that are retained by us are estimated, in part, by considering historical claims experience and actuarial assumptions. While we carry general liability and umbrella policies to mitigate such losses on our general liability risks, our results could be materially impacted by claims and other expenses related to such insurance plans if future occurrences and claims differ from these assumptions and historical trends or if employee health-care claims which we self-insure up to a set limit per employee (and which are insured above such self-insured retention amount) exceed our expectations or historical trends.

Item 1B.    Unresolved Staff Comments

None.

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Item 2.    Properties

Overview

As of December 31, 2021, we owned 77 properties that contain an aggregate of approximately 13.0 million net rentable square feet and consist of 72 office properties and five mixed-use properties (collectively, the "Core Properties"), one development property and three redevelopment properties (collectively, the "Properties"). The properties are located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. As of December 31, 2021, the properties, excluding properties under development and redevelopment, were approximately 91.3% occupied. As of December 31, 2021, we also owned economic interests in nine unconsolidated real estate ventures. See Note 4, ''Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements for further information.

Property Statistics

The following table shows lease expirations for the Core Properties as of December 31, 2021, during each of the next 10 years and thereafter. This table assumes no exercise of renewal options or termination rights:

Year of Lease Expiration December 31,	Rentable Square Feet (in thousands)	Final Annualized Base Rent Under Expiring Leases (a) (in thousands)		Percentage of Total Final Annualized Base Rent Under Expiring Leases
2022	1,213	$	41,266	8.4	%
2023	818	30,393		6.2	%
2024	1,154	46,083		9.3	%
2025	1,175	48,790		9.9	%
2026	929	36,361		7.4	%
2027	1,375	55,930		11.3	%
2028	746	28,863		5.9	%
2029	1,279	57,246		11.6	%
2030	737	35,092		7.1	%
2031	443	21,348		4.3	%
2032 and thereafter	2,031	91,550		18.6	%
	11,900	$	492,922	100.0	%

(a)Represents the annualized cash rental rate of base rents, including tenant reimbursements, in the final month prior to expiration. Tenant reimbursements generally include payment of a portion of real estate taxes, operating expenses, and common area maintenance and utility charges.

The following table shows the geographic locations for the Core Properties as of December 31, 2021. For more information about our geographic locations, see Note 19, ''Segment Information" to our Consolidated Financial Statements:

Location	Number of Properties	Net Rentable Square Feet (in thousands)	Percentage Leased as of December 31, 2021		Leased Square Feet (in thousands)	Total Base Rent (a) (in thousands)		Percentage of Base Rent
Philadelphia	12	4,846	98.0	%	4,749	$	140,641	41.6	%
Pennsylvania Suburbs	34	4,036	93.7	%	3,780	113,817		33.7	%
Austin	20	2,768	93.0	%	2,575	62,849		18.6	%
Metropolitan Washington, D.C.	4	769	68.0	%	523	12,402		3.7	%
Other	7	620	74.7	%	463	7,995		2.4	%
	77	13,039	92.7	%	12,090	$	337,704	100.0	%

(a)Represents base rents earned during the year, including tenant reimbursements, and excludes parking income, tenant inducements, and deferred market rent adjustments.

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The following table shows the major tenants of the Core Properties as of December 31, 2021 and assumes that none of the tenants exercise renewal options or termination rights, if any, at or prior to scheduled expirations:

Tenant Name	Annualized Base Rents (a) (in thousands)		Percentage of Aggregate Annualized Base Rents
IBM, Inc.	$	19,762	4.6	%
Spark Therapeutics, Inc.	16,847		3.9	%
Comcast Corporation	11,811		2.7	%
FMC Corporation	11,126		2.6	%
CSL Behring, LLC	10,693		2.5	%
Troutman Pepper Hamilton Sanders LLP	9,571		2.2	%
Lincoln National Management Corporation	9,545		2.2	%
Independence Blue Cross, LLC	7,892		1.8	%
The Trustees of the University of Pennsylvania	7,111		1.6	%
SailPoint Technologies, Inc.	7,046		1.6	%
Other	322,573		74.3	%
	$	433,977	100.0	%

(a)Represents the annualized base rent, including tenant reimbursements, for each lease in effect at December 31, 2021. Tenant reimbursements generally include payment of a portion of real estate taxes, operating expenses, and common area maintenance and utility charges.

Developments/Redevelopments

As of December 31, 2021, we were developing/redeveloping 0.6 million rentable square feet of office/life science properties and one parking facility.

Item 3.    Legal Proceedings

We are involved from time to time in legal proceedings, including tenant disputes, vendor disputes, employee disputes and disputes arising out of agreements to purchase or sell properties or unconsolidated real estate ventures and disputes relating to state and local taxes. We generally consider these disputes to be routine to the conduct of our business and management believes that the final outcome of such proceedings will not have a material adverse effect on our financial position, results of operations or liquidity.

Item 4.    Mine Safety Disclosures

Not applicable.

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PART II

Item 5.    Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

The common shares of Brandywine Realty Trust are traded on the New York Stock Exchange (“NYSE”) under the symbol “BDN.” There is no established trading market for units of partnership interests in the Operating Partnership. On February 17, 2022, there were 544 holders of record of our common shares and 20 holders of record (in addition to Brandywine Realty Trust) of Class A units of limited partnership interest in the Operating Partnership. On February 17, 2022, the last reported sales price of the common shares on the NYSE was $13.49.

For each quarter in 2021 and 2020, the Operating Partnership paid a cash distribution per Class A unit in an amount equal to the dividend paid on a common share for each such quarter.

In order to maintain the status of Brandywine Realty Trust as a REIT, we must make annual distributions to shareholders of at least 90% of our taxable income (not including net capital gains). Future distributions will be declared at the discretion of our Board of Trustees and will depend on our actual cash flow, financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Internal Revenue Code and such other factors as our Board of Trustees deem relevant. Our credit facilities contain certain restrictions on the payment of dividends. Those restrictions permit us to pay dividends to the greater of (i) an aggregate amount required by us to retain our qualification as a REIT for Federal income tax purposes and (ii) 95% of our funds from operations (FFO). See Item 6., “Selected Financial Data – Liquidity,” and Note 9, ''Debt Obligations,” to our Consolidated Financial Statements for further details.

Our Board of Trustees has adopted a dividend policy designed such that our quarterly distributions are consistent with our normalized annualized taxable income. We expect to make future quarterly distributions to shareholders; however, the timing and amount of future distributions will be at the discretion of our Board and will depend on our actual funds from operations, financial condition and capital requirements and the annual distribution requirements under the REIT provisions of the Code.

See Note 15, ''Share Based Compensation, 401(k) Plan and Deferred Compensation," to our Consolidated Financial Statements for information related to compensation plans under which our common shares are authorized for issuance. See Note 13, ''Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our share repurchase program during the year ended December 31, 2021.

In 2021, we redeemed 157,651 Class A units of limited partnership interest held by unaffiliated third parties for total cash payments of $2.3 million. During the first quarter of 2022, we redeemed 307,516 Class A units of limited partnership interest held by unaffiliated third parties for total cash payments of $4.0 million.

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SHARE PERFORMANCE GRAPH

The SEC requires us to present a chart comparing the cumulative total shareholder return on the common shares with the cumulative total shareholder return of (i) a broad equity index and (ii) a published industry or peer group index. The following chart compares the cumulative total shareholder return for the common shares with the cumulative shareholder return of companies on (i) the S&P 500 Index, (ii) the FTSE NAREIT All Equity REITs Index, (iii) the Russell 2000 Index and (iv) the FTSE NAREIT Equity Office Index for the period beginning December 31, 2016 and ending December 31, 2021 and assumes an investment of $100, with reinvestment of all dividends, has been made in the common shares and in each index on December 31, 2016.

		Period Ending
Index	12/31/2016	12/31/2017	12/31/2018	12/31/2019	12/31/2020	12/31/2021
S&P 500 Index	100.00	121.83	116.49	153.17	181.35	233.41
FTSE NAREIT All Equity REITs Index	100.00	108.67	104.28	134.17	127.30	179.87
Russell 2000 Index	100.00	114.65	102.02	128.06	153.62	176.39
FTSE NAREIT Equity Office Index	100.00	105.25	89.99	118.26	96.46	117.68
Brandywine Realty Trust	100.00	114.42	84.62	109.12	88.33	105.55

Item 6.    [Reserved]

Item 7.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the Consolidated Financial Statements appearing elsewhere herein and is based primarily on our Consolidated Financial Statements for the years ended December 31, 2021, 2020 and 2019. This report including the following discussion, contains forward-looking statements, which we intend to be covered by the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance

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that our expectations will be achieved. These forward-looking statements are inherently uncertain, and actual results may differ from expectations. “See “Forward-Looking Statements” immediately before Part I of this report.

OVERVIEW

During the twelve months ended December 31, 2021, we owned and managed properties within five segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas, (4) Metropolitan Washington, D.C., and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in Northern Virginia, Washington, D.C. and Southern Maryland. The Other segment includes properties in Camden County, New Jersey and New Castle County, Delaware. In addition to the five segments, our corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions.

We generate cash and revenue from leases of space at our Properties and, to a lesser extent, from the management and development of properties owned by third parties and from investments in the unconsolidated real estate ventures. Factors that we evaluate when leasing space include rental rates, costs of tenant improvements, tenant creditworthiness, current and expected operating costs, the length of the lease term, vacancy levels, and demand for space. We also generate cash through sales of assets, including assets that we do not view as core to our business plan, either because of location or expected growth potential, and assets that are commanding premium prices from third party investors.

Our financial and operating performance is dependent upon the demand for office, residential, parking, and retail space in our markets, our leasing results, our acquisition, disposition and development activity, our financing activity, our cash requirements and economic and market conditions, including prevailing interest rates.

Adverse changes in economic conditions, including the ongoing effects of the global COVID-19 pandemic and inflation, could result in a reduction of the availability of financing and higher borrowing costs. We continue to closely monitor the impact of the COVID-19 pandemic on all aspects of our business, including how it is impacting our tenants, employees, and business partners. Vacancy rates may increase, and rental rates and rent collection rates may decline as the current economic climate may negatively impact tenants.The long-term impact of the ongoing COVID-19 pandemic on the global economy and our tenants and prospective tenants remains uncertain and will depend on new information which may emerge concerning the severity of COVID-19, new variants of COVID-19 and the actions taken to contain it or treat its impact. In addition, the government responses to control the pandemic are creating disruption in the global economy and supply chains and adversely impacting many industries, including owners and developers of office and mixed-use buildings.

Overall economic conditions, including but not limited to labor shortages, supply chain constraints, and deteriorating financial and credit markets, could have a dampening effect on the fundamentals of our business, including increases in past due accounts, tenant defaults, lower occupancy and reduced effective rents. These adverse conditions could impact our net income and cash flows and could have a material adverse effect on our financial condition. We believe that the quality of our assets and the strength of our balance sheet will enable us to raise capital, if necessary, in various forms and from different sources, including through secured or unsecured loans from banks, pension funds and life insurance companies. However, there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all.

We continue to seek revenue growth throughout our portfolio by increasing occupancy and rental rates. Occupancy at our Core Properties at December 31, 2021 was 91.3% compared to 91.9% at December 31, 2020.

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The table below summarizes selected operating and leasing statistics of our wholly owned properties for the years ended December 31, 2021 and 2020:

	Year Ended December 31,
	2021			2020
Leasing Activity
Core Properties (1):
Total net rentable square feet owned	13,039,634			13,412,591
Occupancy percentage (end of period)	91.3		%	91.9		%
Average occupancy percentage	89.6		%	89.8		%
Total Portfolio, less properties in development (2):
Tenant retention rate (3)	52.8		%	52.2		%
New leases and expansions commenced (square feet)	661,826			861,978
Leases renewed (square feet)	484,574			642,112
Net absorption (square feet)	(49,724)			(91,207)
Percentage change in rental rates per square foot (4):
New and expansion rental rates	23.1		%	21.5		%
Renewal rental rates	12.4		%	13.7		%
Combined rental rates	16.2		%	17.5		%
Capital Costs Committed (5):
Leasing commissions (per square foot)	$	8.54		$	9.18
Tenant Improvements (per square foot)	$	18.38		$	22.06
Weighted average lease term (years)	7.0			7.6
Total capital per square foot per lease year	$	3.23		$	4.01

(1)Does not include properties under development, redevelopment, held for sale, or sold.

(2)Includes leasing related to completed developments and redevelopments, as well as sold properties.

(3)Calculated as percentage of total square feet.

(4)Includes base rent plus reimbursement for operating expenses and real estate taxes.

(5)Calculated on a weighted average basis.

In seeking to increase revenue through our operating, financing, and investment activities, we also seek to minimize operating risks, including (i) tenant rollover risk, (ii) tenant credit risk and (iii) development risk.

Tenant Rollover Risk

We are subject to the risk that tenant leases, upon expiration, will not be renewed, that space may not be relet, or that the terms of renewal or reletting (including the cost of renovations) may be less favorable to us than the current lease terms. Leases that accounted for approximately 8.4% of our aggregate final annualized base rents as of December 31, 2021 (representing approximately 10.2% of the net rentable square feet of the properties) are scheduled to expire without penalty in 2022. We maintain an active dialogue with our tenants in an effort to maximize lease renewals. If we are unable to renew leases or relet space under expiring leases, at anticipated rental rates, or if tenants terminate their leases early, our cash flow would be adversely impacted.

Tenant Credit Risk

In the event of a tenant default, we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment. Our management evaluates our accrued rent receivable reserve policy in light of our tenant base and general and local economic conditions. Our accrued rent receivable allowance was $4.1 million or 2.4% of our accrued rent receivable balance as of December 31, 2021 compared to $5.1 million or 3.2% of our accrued rent receivable balance as of December 31, 2020.

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If economic conditions deteriorate, including as a result of the ongoing COVID-19 pandemic and inflation, we may experience increases in past due accounts, defaults, lower occupancy and reduced effective rents. This condition would negatively affect our future net income and cash flows and could have a material adverse effect on our financial condition.

Development Risk

Development projects are subject to a variety of risks, including construction delays, construction cost overruns, building moratoriums, inability to obtain financing on favorable terms, inability to lease space at projected rates, inability to enter into construction, development and other agreements on favorable terms, and unexpected environmental and other hazards.

As of December 31, 2021 the following active development and redevelopment projects remain under construction in progress and we were proceeding on the following activity (dollars, in thousands):

Property/Portfolio Name	Location	Completion Date	Activity Type	Approximate Square Footage	Estimated Costs		Amount Funded
405 Colorado Street (a)	Austin, TX	Q2 2021 (c)	Development	205,803	$	121,864	$	87,033
250 King of Prussia Road (b)	Radnor, PA	Q2 2022	Redevelopment	168,294	$	82,854	$	28,400

(a)Estimated costs include $2.1 million of existing property basis through a ground lease. Project includes 520 parking spaces.

(b)Total project costs include $20.6 million of existing property basis.

(c)The parking garage and occupied portions of the office building were placed into service during 2021.

In addition to the properties listed above, we have classified one office building in Herndon, Virginia that has yet to incur significant redevelopment costs, and one parking facility in Philadelphia, Pennsylvania as redevelopment.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses our Consolidated Financial Statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the reporting periods. Certain accounting policies are considered to be critical accounting policies, as they require management to make assumptions about matters that are highly uncertain at the time the estimate is made and changes in the accounting estimate are reasonably likely to occur from period to period. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Impairment

We assess each of our real estate investments for indicators of impairment quarterly or when circumstances indicate that a real estate investment may be impaired. When indicators of potential impairment are present that suggest that the carrying amounts of real estate investments and related intangible assets may not be recoverable, we assess the recoverability by determining whether the respective carrying values will be recovered through the estimated undiscounted future operating cash flows expected from the use of the assets and their eventual disposition over, in most cases, a ten-year holding period. If we believe there is a significant possibility that we might dispose of the assets earlier, we assess the recoverability using a probability weighted analysis of the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets over the various possible holding periods. If the recoverability assessment indicates that the carrying value of a tested real estate investment is not recoverable from estimated undiscounted future cash flows, it is written down to its estimated fair value and an impairment is recognized. If and when our plans change, we revise our recoverability analyses to use the cash flows expected from the operations and eventual disposition of each asset using holding periods that are consistent with our revised plans.

Real estate investment fair values are estimated based on contract prices, discounted cash flows, or comparable sales. Estimated future cash flows used in such analyses are based on our views of market and economic conditions. The estimation of future cash flows is subjective and is based on various assumptions, including but not limited to market rental rates, capitalization rates, and recent sales data for comparable real estate investments. Estimated future cash flows are discounted when determining fair value of an asset. Most of these assumptions are influenced by our direct experience with the real estate investments and their markets as well as market data obtained from real estate leasing and brokerage firms. Determining the appropriate capitalization or discount rate also requires significant judgment and is typically based on many

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factors, including the prevailing rate for the market or submarket, as well as the quality and location of the real estate investment. Changes in the estimated future cash flows due to changes in our plans for a real estate investment, views of market and economic conditions and/or our ability to obtain development rights could result in recognition of an impairment which could be material.

Real estate investments held for sale are carried at the lower of their carrying values (i.e., cost less accumulated depreciation and any impairment recognized, where applicable) or estimated fair values less costs to sell. Accordingly, decisions to sell certain operating real estate investments, real estate investments in development or land held for development will result in impairments if carrying values of the specific real estate investments exceed their estimated fair values less costs to sell. The estimates of fair value consider matters such as recent sales data for comparable real estate investments and, where applicable, contracts or the results of negotiations with prospective purchasers. These estimates are subject to revision as market conditions, and our assessment of such conditions, change.

In addition to our real estate investments, we review each of our investments in unconsolidated real estate ventures to determine whether there are any indicators, including property operating performance, changes in anticipated hold periods, and general market conditions, that the Company's investment in the unconsolidated joint venture may be impaired. If any indicators of impairment are present, we calculate the fair value of the investment in the unconsolidated real estate venture. If the fair value of the investment is less than the carrying value, we determine whether the impairment is other than temporary. If the impairment is determined to be other than temporary, we record an impairment.

We use considerable judgment in the determination of whether indicators of impairment are present and, in the assumptions, estimations, and inputs used in calculating the fair value of the investment, which is generally determined through income valuation approaches, including discounted cash flows and direct capitalization models. These judgments are similar to those outlined above in the impairment of real estate investments. We also use judgment in making the determination as to whether or not the impairment is temporary by considering, among other things, the length of time that the market value has been less than cost, the financial condition of the unconsolidated real estate venture and our ability and intent to retain the investment long enough for a recovery in value. Our judgments related to the determination of fair value and whether an impairment is other than temporary could result in the recognition of an impairment which could be material.

Revenue Recognition

The majority of our revenues are derived from leases and are reflected as rents on the accompanying consolidated statements of operations. Rental revenue is recognized on a straight-line basis over the term of the lease.

Most of our leases involve some form of improvements to leased space. When we are required to provide improvements under the terms of a lease, we need to determine whether the improvements constitute landlord assets or tenant assets. If the improvements are landlord assets, we capitalize the cost of the improvements and recognize depreciation expense associated with such improvements over the shorter of the estimated useful life or the term of the lease. If the improvements are tenant assets, we defer the cost of improvements funded by us as a lease incentive asset and amortize it as a reduction of rental revenue over the term of the lease. Our determination of whether improvements are landlord assets or tenant assets also may affect when we commence revenue recognition in connection with a lease.

In determining whether improvements constitute landlord or tenant assets, we consider a number of factors that may require subjective or complex judgments, including: whether the improvements are unique to the tenant or reusable by other tenants; whether the tenant is permitted to alter or remove the improvements without our consent or without compensating us for any lost fair value; whether the ownership of the improvements remains with us or remains with the tenant at the end of the lease term; and whether the economic substance of the lease terms is properly reflected.

For certain leases, we make significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option. The lease term impacts the period over which we determine and record rental revenue and impacts the period over which we amortize lease-related costs. Changes in these assessments could result in the write-off of any recorded assets associated with straight-line rental revenue and acceleration of depreciation and amortization expense associated with costs we incurred related to these leases.

Purchase Price Allocation

When we acquire real estate investments, we allocate the purchase price to tangible assets, consisting of land, building, site improvements, and identified intangible assets and liabilities, including in-place leases and acquired above- and below-market leases, and if applicable, assumed debt, based on our estimate of their fair values.

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We assess fair value based on estimated cash flow projections that utilize discount and capitalization rates as well as available market information. The fair value of the tangible assets of an acquired real estate investment considers the value of the real estate investment as if it were vacant. The estimated relative fair value of acquired in-place leases are the estimated costs to lease the real estate investment to the occupancy level at the date of acquisition. We evaluate the period over which we expect stabilized occupancy level to be achieved during the lease-up period. Above- and below-market leases are recorded as an asset or liability based upon the present value of the difference between the contractual amounts to be paid or received pursuant to the in-place leases, and our estimate of fair market rental rates for the corresponding in-place leases, over the remaining noncancellable term. Assumed debt, if any, is recorded at fair value based upon the present value of the expected future payments.

A change in any of the key assumptions can materially change not only the presentation of acquired real estate investments in our consolidated financial statements but also our reported results of operations.

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RESULTS OF OPERATIONS

The following discussion is based on our Consolidated Financial Statements for the years ended December 31, 2021 and 2020. Refer to Item 7. "Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2020 for a discussion of the results of operations for the year ended December 31, 2019 which is presented therein in the form of a year-to-year comparison to the year ended December 31, 2020. We believe that presentation of our consolidated financial information, without a breakdown by segment, will effectively present important information useful to our investors.

Net operating income (“NOI”), as presented in the comparative analysis, below is defined as total revenue less property operating expenses, real estate taxes, and third party management expenses. Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance, management fees, and bad debt expense. General and administrative expenses that are not reflected in NOI primarily consist of corporate-level salaries, amortization of share awards, and professional fees that are incurred as part of corporate office management. NOI is a non-GAAP financial measure that we use internally to evaluate the operating performance of our real estate assets by segment, as presented in Note 19, ''Segment Information,” to our Consolidated Financial Statements, and of our business as a whole. We believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. While NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. NOI does not reflect interest expenses, real estate impairments, depreciation and amortization costs, capital expenditures, and leasing costs. We believe that net income, as defined by GAAP, is the most appropriate earnings measure. See Note 19, ''Segment Information,” to our Consolidated Financial Statements for a reconciliation of NOI to our consolidated net income (loss) as defined by GAAP.

Comparison of the Year Ended December 31, 2021 to the Year Ended December 31, 2020

The following comparison for the year ended December 31, 2021 to the year ended December 31, 2020, makes reference to the effect of the following:

(a)“Same Store Property Portfolio,” which represents 73 properties containing an aggregate of approximately 12.5 million net rentable square feet that we owned and consolidated for the twelve-month periods ended December 31, 2021 and 2020. The Same Store Property Portfolio includes properties acquired or placed in service on or prior to January 1, 2020 and owned and consolidated through December 31, 2021, excluding properties classified as held for sale,

(b)“Total Portfolio,” which represents all properties owned and consolidated by us during 2021 and 2020,

(c)"Recently Completed/Acquired Properties," which represents four properties placed into service or acquired on or subsequent to January 1, 2020,

(d)"Development/Redevelopment Properties," which represents four properties currently in development/redevelopment. A property is excluded from our Same Store Property Portfolio and moved into Development/Redevelopment in the period that we determine to proceed with development/redevelopment for a future development strategy, and

(e)"2020 and 2021 Dispositions," which represents 15 properties disposed of during 2020 and 2021.

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Comparison of Year Ended December 31, 2021 to the Year Ended December 31, 2020

	Same Store Property Portfolio										Recently Completed/Acquired Properties					Development/Redevelopment Properties				Other (Eliminations) (a)				Total Portfolio
(dollars and square feet in millions except per share amounts)	2021			2020			$ Change		% Change		2021			2020		2021		2020		2021		2020		2021		2020		$ Change		% Change
Revenue:
Rents	$	422.2		$	417.2		$	5.0	1.2	%	$	17.9		$	10.3	$	1.3	$	10.1	$	10.1	$	75.9	$	451.5	$	513.5	$	(62.0)	(12.1)	%
Third party management fees, labor reimbursement and leasing	—			—			—		—	%	—			—		—		—		26.4		18.6		26.4		18.6		7.8		41.9	%
Other	0.9			0.9			—		—	%	—			—		—		—		8.0		1.9		8.9		2.8		6.1		217.9	%
Total revenue	423.1			418.1			5.0		1.2	%	17.9			10.3		1.3		10.1		44.5		96.4		486.8		534.9		(48.1)		(9.0)	%
Property operating expenses	109.0			106.6			2.4		2.3	%	4.3			3.0		0.8		0.8		7.8		21.8		121.9		132.2		(10.3)		(7.8)	%
Real estate taxes	50.5			50.4			0.1		0.2	%	0.9			1.0		0.3		1.6		1.9		10.0		53.6		63.0		(9.4)		(14.9)	%
Third party management expenses	—			—			—		—	%	—			—		—		—		12.8		10.3		12.8		10.3		2.5		24.3	%
Net operating income	263.6			261.1			2.5		1.0	%	12.7			6.3		0.2		7.7		22.0		54.3		298.5		329.4		(30.9)		(9.4)	%
Depreciation and amortization	158.6			148.1			10.5		7.1	%	7.8			6.3		1.1		1.7		10.6		32.2		178.1		188.3		(10.2)		(5.4)	%
General & administrative expenses	—			—			—		—	%	—			—		—		—		30.2		30.3		30.2		30.3		(0.1)		(0.3)	%
Net gain on disposition of real estate																								(0.1)		(289.5)		289.4		(100.0)	%
Net gain on sale of undepreciated real estate																								(2.9)		(0.2)		(2.7)		1,350.0	%
Operating income (loss)	$	105.0		$	113.0		$	(8.0)	(7.1)	%	$	4.9		$	—	$	(0.9)	$	6.0	$	(18.8)	$	(8.2)	$	93.2	$	400.5	$	(307.3)	(76.7)	%
Number of properties	73			73							4					4								81
Square feet	12.5			12.5							0.5					0.6								13.9
Core Occupancy % (b)	91.0		%	91.5		%					96.2		%
Other Income (Expense):
Interest and investment income																								8.3		1.9		6.4		336.8	%
Interest expense																								(62.6)		(73.9)		11.3		(15.3)	%
Interest expense — Deferred financing costs																								(2.8)		(2.9)		0.1		(3.4)	%
Equity in loss of unconsolidated real estate ventures																								(26.7)		(18.6)		(8.1)		43.5	%
Net gain on real estate venture transactions																								3.0		0.1		2.9		2,900.0	%
Income tax benefit																								—		0.2		(0.2)		(100.0)	%
Net income																								$	12.4	$	307.3	$	(294.9)	(96.0)	%
Net income attributable to Common Shareholders of Brandywine Realty Trust																								$	0.07	$	1.77	$	(1.70)	(96.0)	%

(a)Represents certain revenues and expenses at the corporate level as well as various intercompany costs that are eliminated in consolidation, third-party management fees, provisions for impairment, and changes in the accrued rent receivable allowance. Other/(Eliminations) also includes properties sold and properties classified as held for sale.

(b)Pertains to Core Properties.

Total Revenue

Rents from the Total Portfolio decreased primarily as a result of the following:

•$64.0 million decrease related to the 2020 and 2021 Dispositions;

•$9.9 million decrease related to a property that has been vacated and placed into redevelopment in our Metropolitan Washington D.C. segment;

•$3.7 million decrease related to a property that has been vacated and taken out of service for future demolition in our Austin, Texas segment;

•$7.6 million increase related to the Recently Completed/Acquired Properties;

•$2.1 million increase related to the residential and hotel components at the FMC Tower in our Philadelphia CBD segment related to higher occupancy partially due to the lifting of COVID-19 pandemic restrictions; and

The remaining $5.9 million increase in Rents is primarily due to partial occupancy at 405 Colorado, a development property in our Austin, Texas segment, and increased occupancy and rental rates for lease renewals at certain properties across our Same Store Property Portfolio, as well as increased use of our properties by the tenants related to the lifting of COVID-19 pandemic restrictions, resulting in an increase in tenant reimbursements.

Third party management fees, labor reimbursement, and leasing income increased primarily due to $4.2 million of fees earned from the Mid-Atlantic Office Venture formed in the fourth quarter of 2020, $2.1 million of fees earned from the Commerce Square Venture formed

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in the third quarter of 2020, and a $1.9 million increase in fees earned from our MAP Venture primarily related to increases in leasing commissions and construction management fees.

Other income at our Total Portfolio increased primarily as a result of the following:

•$3.9 million in excess insurance proceeds primarily related to a property in our Austin, Texas segment;

•$0.8 million increase related to a settlement received from a general contractor for liquidated damages as a result of a construction delay at a property in our Austin, Texas segment;

•$0.7 million increase in income from the restaurant component of FMC Tower as a result of the lifting of COVID-19 pandemic restrictions; and

•$0.4 million increase related a legal settlement during the second quarter of 2021.

Property Operating Expenses

Property operating expenses decreased primarily as a result of the following:

•$20.0 million decrease related to 2020 and 2021 Dispositions; and

•$1.1 million increase related to the Recently Completed/Acquired Properties.

The remaining offsetting increase of $8.6 million is related to miscellaneous increases in property operating expenses across our Total Portfolio, primarily driven by increased use of our properties by the tenants as a result of lifting of COVID-19 pandemic restrictions and increases in property-related employee compensation expenses, marketing expenses, and repairs and maintenance.

Real Estate Taxes

Real estate taxes decreased primarily due to a $7.1 million decrease related to the 2020 and 2021 Dispositions as well as a decrease related to a property that has been vacated and placed into redevelopment in our Metropolitan Washington D.C. segment.

Depreciation and Amortization

Depreciation and amortization expense decreased primarily as a result of the following:

•$23.2 million decrease related to the 2020 and 2021 Dispositions;

•$9.8 million increase due to the reassessment of the estimated useful life of seven properties in our Austin, Texas segment pursuant to future demolition plans as part of our Uptown ATX master development plan beginning in the second quarter of 2021; and

•$2.2 million increase related to an early write-off of lease intangibles in connection with a property in our Austin, Texas segment in 2021.

Net Gain on Disposition of Real Estate

The $289.5 million gain on disposition of real estate for 2020 primarily resulted from the following sales transactions:

•$271.9 million related to the sale of a 30% preferred equity interest in One Commerce Square and Two Commerce Square, which resulted in deconsolidation of the properties and recognition of our investment in the properties at fair value;

•$15.2 million related to the sale of a 60% equity interest in a portfolio of twelve suburban office properties located in suburban Pennsylvania and Maryland, containing an aggregate of 1.1 million square feet ("Mid-Atlantic Office Portfolio"), which resulted in deconsolidation of the properties and recognition of our investment in the properties at fair value; and

•$2.3 million related to the disposition of 52 East Swedesford Road, an office property in our Pennsylvania Suburbs segment.

Net Gain on Sale of Undepreciated Real Estate

The gain of $2.9 million recognized during 2021 is due to the following:

•$2.0 million related to the formation of the 3025 JFK Venture, which resulted in deconsolidation of the project and recognition of our investment in the real estate venture at fair value; and

•$0.9 million related to the sale of three parcels of land in our Other Segment.

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The gain of $0.2 million recognized during 2020 primarily resulted from the sale of a land parcel in Horsham, Pennsylvania.

Interest and Investment Income

Interest and investment income increased by $6.4 million primarily as a result of a preferred equity investment we funded on December 31, 2020 and that was redeemed prior to maturity on September 3, 2021. Of the $6.4 million increase, $2.8 million related to our receipt of an accelerated minimum return and exit fees paid in cash on the redemption date. There was no income recognized in 2020 related to this investment.

Interest Expense

Interest expense decreased primarily due to the following:

•$4.8 million decrease due to deconsolidation of One Commerce Square and Two Commerce Square and the associated mortgage loans on July 21, 2020;

•$4.0 million decrease due to an increase in capitalized interest on our various development projects as well as capitalized interest on our investment in 3025 JFK Venture;

•$3.2 million decrease due to the purchase of the Two Logan Square mortgage in the fourth quarter of 2020; and

•$2.0 million increase due to a reduction of interest expense recognized during the three months ended September 30, 2020 on account of a contingent payment to an unaffiliated third party. The amount had previously accreted through interest expense and a portion of the contingent payment ceased to be probable in the third quarter of 2020 due to the anticipated purchase of the Two Logan Square mortgage in the fourth quarter of 2020.

The remaining decrease is primarily related to lower interest rates during 2021 compared to 2020.

Equity in Loss of unconsolidated real estate ventures

Equity in loss of unconsolidated real estate ventures increased primarily due to:

•$6.4 million increase associated with our Commerce Square Venture formed on July 21, 2020;

•$2.1 million increase related to our MAP Venture due to lower revenues driven by lower occupancy during the year ended December 31, 2021 than the year ended December 31, 2020;

•$0.9 million increase associated with our BDN AI Venture, which is primarily driven by our $0.7 million share of the held for sale impairment on the remaining property held by the venture. See Note 4, ''Investment in Unconsolidated Real Estate Ventures" to our Consolidated Financial Statements for further information;

•$0.8 million decrease associated with our Mid-Atlantic Office Venture formed on December 21, 2020; and

•$0.4 million decrease associated with our 1919 Market Street Venture.

Net Gain on Real Estate Venture Transactions

The $3.0 million net gain on real estate venture transactions is due to the sale of the remaining office property at our BDN AI Venture and distribution of the sale proceeds to the partners during the fourth quarter of 2021. See Note 4, ''Investment in Unconsolidated Real Estate Ventures" to our Consolidated Financial Statements for further information.

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LIQUIDITY AND CAPITAL RESOURCES

General

Our principal liquidity funding needs for the next twelve months are as follows:

•normal recurring expenses;

•capital expenditures, including capital and tenant improvements and leasing costs;

•debt service and principal repayment obligations;

•current development and redevelopment costs;

•commitments to unconsolidated real estate ventures;

•distributions to shareholders to maintain our REIT status;

•possible acquisitions of properties, either directly or indirectly through the acquisition of equity interest therein; and

•possible common share repurchases.

We expect to satisfy these needs using one or more of the following:

•cash flows from operations;

•distributions of cash from our unconsolidated real estate ventures;

•cash and cash equivalent balances;

•availability under our unsecured credit facility;

•secured construction loans and long-term unsecured indebtedness;

•sales of real estate or contributions of interests in real estate to joint ventures; and

•issuances of Parent Company equity securities and/or units of the Operating Partnership.

As of December 31, 2021, the Parent Company owned a 99.5% interest in the Operating Partnership. The remaining interest of approximately 0.5% pertains to common limited partnership interests owned by non-affiliated investors who contributed property to the Operating Partnership in exchange for their interests. As the sole general partner of the Operating Partnership, the Parent Company has full and complete responsibility for the Operating Partnership’s day-to-day operations and management. The Parent Company’s source of funding for its dividend payments and other obligations is the distributions it receives from the Operating Partnership.

As summarized above, we believe that our liquidity needs will be satisfied through available cash balances and cash flows from operations, financing activities and real estate sales. Rental revenue and other income from operations are our principal sources of cash to pay operating expenses, debt service, recurring capital expenditures and the minimum distributions required to maintain our REIT qualification. We seek to increase cash flows from our properties by maintaining quality standards for our properties that promote high occupancy rates and permit increases in rental rates while reducing tenant turnover and controlling operating expenses. Our revenue also includes third-party fees generated by our property management, leasing, development and construction businesses. We believe that our revenue, together with proceeds from property sales and debt financings, will continue to provide funds for our short-term liquidity needs. However, material changes in our operating or financing activities may adversely affect our net cash flows. With uncertain economic conditions, vacancy rates may increase, effective rental rates on new and renewed leases may decrease and tenant installation costs, including concessions, may increase in most or all of our markets during 2022 and possibly beyond. As a result, our revenues and cash flows could be insufficient to cover operating expenses, including increased tenant installation costs, pay debt service or make distributions to shareholders over the short-term. If this situation were to occur, we expect that we would finance cash deficits through borrowings under our unsecured credit facility and other sources of debt and equity financings. In addition, a material adverse change in cash provided by operations could adversely affect our compliance with financial performance covenants under our unsecured credit facility, including unsecured term loans and unsecured notes. As of December 31, 2021 we were in compliance with all of our debt covenants and requirement obligations.

In addition, we are continuing to monitor the ongoing COVID-19 pandemic and the related economic impacts, market volatility, and business disruption, and its impact on our tenants. The severity and duration of the pandemic and its impact on our operations and liquidity is uncertain and continues to evolve globally. However, if the pandemic continues, there will likely be continued negative economic impacts, market volatility, and business disruption which could negatively impact our tenants’ ability to pay rent, our ability to lease vacant space, and our ability to complete development and redevelopment projects, and these consequences, in turn, could materially impact our results of operations.

We have granted rent relief requests primarily to our co-working and retail tenants. The relief requests have substantially all been in the form of rent deferral for varying lengths of time, but were primarily repaid in 2020 and 2021. For those tenants

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we believe require rent relief, we have granted deferrals and, in some instances, rent abatements while receiving extended lease terms through favorable lease extensions. We continue to assess the merits of rent deferral requests and can give no assurances on the outcomes of these ongoing negotiations, the amount and nature of the rent relief packages and ultimate recovery of the amounts deferred.

We use multiple financing sources to fund our long-term capital needs. When needed, we use borrowings under our unsecured credit facility for general business purposes, including to meet debt maturities and to fund distributions to shareholders as well as development and acquisition costs and other expenses. In light of the volatility in financial markets and economic uncertainties, it is possible, that one or more lenders under our unsecured credit facility could fail to fund a borrowing request. Such an event could adversely affect our ability to access funds under our unsecured credit facility when needed to fund distributions or pay expenses.

Our ability to incur additional debt is dependent upon a number of factors, including our credit ratings, the value of our unencumbered assets, our degree of leverage and borrowing restrictions imposed by our lenders. If one or more rating agencies were to downgrade our unsecured credit rating, our access to the unsecured debt market would be more limited and the interest rate under our unsecured credit facility and unsecured term loan would increase.

The Parent Company unconditionally guarantees the Operating Partnership’s unsecured debt obligations, which, as of December 31, 2021, amounted to $1,851.6 million. We did not have any secured debt obligations as of December 31, 2021.

Capital Markets

The Parent Company issues equity from time to time, the proceeds of which it contributes to the Operating Partnership in exchange for additional interests in the Operating Partnership, and guarantees debt obligations of the Operating Partnership. The Parent Company’s ability to sell common shares and preferred shares is dependent on, among other things, general market conditions for REITs, market perceptions about the Company as a whole, and the current trading price of the Parent Company’s shares. The Parent Company maintains a shelf registration statement that covers the offering and sale of common shares, preferred shares, depositary shares, warrants and unsecured debt securities. Subject to our ongoing compliance with securities laws, and if warranted by market conditions, we may offer and sell equity and debt securities from time to time under the shelf registration statement or in transactions exempt from registration.

See Note 13, ''Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our share repurchase program. We expect to fund any additional share repurchases with a combination of available cash balances and availability under our unsecured credit facility. The timing and amounts of any repurchases will depend on a variety of factors, including market conditions, regulatory requirements, share prices, capital availability and other factors as determined by our management team. The repurchase program does not require the purchase of any minimum number of shares and may be suspended or discontinued at any time without notice.

Capital Recycling

The Operating Partnership also considers net sales of selected properties and recapitalization of unconsolidated real estate ventures as additional sources of managing its liquidity. During 2021, we closed on the sale of three parcels of land as well as one office property in our Brandywine - AI Venture for net cash proceeds of $10.2 and $12.6 million, respectively. In addition, we contributed our investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development to 3025 JFK Venture.

As of December 31, 2021, we had $27.5 million of cash and cash equivalents and $575.8 million of available borrowings under our unsecured credit facility, net of $1.2 million in letters of credit outstanding. Based on the foregoing, as well as cash flows from operations net of dividend requirements, we believe we have sufficient capital to fund our remaining capital requirements on existing development and redevelopment projects and pursue additional attractive investment opportunities. We expect that our primary uses of capital during 2022 will be to fund our current development and redevelopment projects.

Cash Flows

The following discussion of our cash flows is based on the consolidated statement of cash flows and is not meant to be a comprehensive discussion of the changes in our cash flows for the years presented.

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As of December 31, 2021 and 2020, we maintained cash and cash equivalents and restricted cash of $28.3 million and $47.1 million, respectively. We report and analyze our cash flows based on operating activities, investing activities, and financing activities. The following table summarizes changes in our cash flows (in thousands):

	Year Ended December 31,
Activity	2021		2020		(Decrease) Increase
Operating	$	190,874	$	225,806	$	(34,932)
Investing	(100,315)		18,290		(118,605)
Financing	(109,336)		(288,189)		178,853
Net cash flows	$	(18,777)	$	(44,093)	$	25,316

Our principal source of cash flows is from the operation of our Properties. Our Properties provide a relatively consistent stream of cash flows that provides us with the resources to fund operating expenses, debt service and quarterly dividends. The decrease in operating cash flows is primarily due to the 15 properties disposed of or contributed to an unconsolidated real estate venture during 2020 and 2021.

Cash is used in investing activities to fund acquisitions, development, or redevelopment projects and recurring and nonrecurring capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing, and property management skills and invest in existing buildings that meet our investment criteria. During the year ended December 31, 2021, when compared to the year ended December 31, 2020, the change in investing cash flows was due to the following activities (in thousands):

	(Decrease) Increase
Acquisitions of real estate	$	41,950
Capital expenditures and capitalized interest	25,129
Capital improvements/acquisition deposits/leasing costs	(6,226)
Joint venture investments	(30,924)
Proceeds from the sale of properties	(267,811)
Proceeds from note receivable	50,000
Issuance of note receivable	50,000
Capital distributions from unconsolidated real estate ventures	18,027
Other investing activities	1,250
Increase in net cash used in investing activities	$	(118,605)

We generally fund our investment activity through the sale of real estate, property-level financing, credit facilities, senior unsecured notes, and construction loans. From time to time, we may issue common or preferred shares of beneficial interest, or the Operating Partnership may issue common or preferred units of limited partnership interest. During the year ended December 31, 2021, when compared to the year ended December 31, 2020, the change in financing cash flows was due to the following activities (in thousands):

	(Decrease) Increase
Proceeds from debt obligations	$	(164,000)
Repayments of debt obligations	281,993
Redemption of limited partnership units	(2,334)
Repurchase and retirement of common shares	60,000
Dividends and distributions paid	955
Other financing activities	2,239
Decrease in net cash used in financing activities	$	178,853

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Capitalization

Indebtedness

The table below summarizes indebtedness under our unsecured debt at December 31, 2021 and December 31, 2020:

	December 31, 2021			December 31, 2020
	(dollars in thousands)
Balance: (a)
Fixed rate	$	1,750,000		$	1,775,774
Variable rate - unhedged	101,610			52,836
Total	$	1,851,610		$	1,828,610
Percent of Total Debt:
Fixed rate	94.5		%	97.1		%
Variable rate - unhedged	5.5		%	2.9		%
Total	100.0		%	100.0		%
Weighted-average interest rate at period end:
Fixed rate	3.8		%	3.8		%
Variable rate - unhedged	1.3		%	1.5		%
Total	3.7		%	3.8		%
Weighted-average maturity in years:
Fixed rate	4.0			5.2
Variable rate - unhedged	10.6			14.6
Total	4.4			5.4

(a)Consists of unpaid principal and does not reflect premium/discount or deferred financing costs.

Scheduled principal payments and related weighted average annual effective interest rates for our debt as of December 31, 2021 were as follows (dollars in thousands):

Period	Principal maturities		Weighted Average Interest Rate of Maturing Debt
2022	$	273,000	2.73	%
2023	350,000		3.87	%
2024	350,000		3.78	%
2025	—		—	%
2026	—		—	%
2027	450,000		4.03	%
2028	—		—	%
2029	350,000		4.30	%
2030	—		—	%
2031	—		—	%
Thereafter	78,610		1.38	%
Totals	$	1,851,610	3.70	%

Unsecured Debt

The Operating Partnership is the issuer of our unsecured notes which are fully and unconditionally guaranteed by the Parent Company. The indenture under which the Operating Partnership issued its unsecured notes contains financial covenants, including: (i) a leverage ratio not to exceed 60%; (ii) a secured debt leverage ratio not to exceed 40%; (iii) a debt service coverage ratio of greater than 1.5 to 1.0; and (iv) an unencumbered asset value of not less than 150% of unsecured debt. The Operating Partnership is in compliance with all covenants as of December 31, 2021.

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The charter documents of the Parent Company and Operating Partnership do not limit the amount or form of indebtedness that the Operating Partnership may incur, and its policies on debt incurrence are solely within the discretion of the Parent Company’s Board of Trustees, subject to the financial covenants in the Credit Facility, indenture and other credit agreements.

Equity

In order to maintain its qualification as a REIT, the Parent Company is required to, among other things, pay dividends to its shareholders of at least 90% of its REIT taxable income. During the year ended December 31, 2021, the Parent Company paid dividends in excess of the 90% criterion. See Note 13, ''Beneficiaries' Equity of the Parent Company,” to our Consolidated Financial Statements for further information related to our dividends declared for the fourth quarter of 2021.

Contractual Obligations

We provide customary guarantees for certain development projects of our unconsolidated real estate ventures. See Note 20, ''Commitments and Contingencies,” to our Consolidated Financial Statements for further details on payment guarantees provided on the behalf of real estate ventures.

In connection with the Schuylkill Yards Project, we entered into a neighborhood engagement program and, as of December 31, 2021, had $7.0 million of future contractual obligations. We are also committed to making additional contributions under the program. We estimate that, as of December 31, 2021, these additional contributions, which are not fixed under the terms of agreement, will be $2.4 million. See Note 20, ''Commitments and Contingencies,” to our Consolidated Financial Statements for further information.

In connection with the formation of the Commerce Square Venture, we committed to investing an additional $20.0 million of preferred equity in the properties on a pari passu basis with our joint venture partner of which $2.1 million has been contributed by us as of December 31, 2021.

As part of our September 2004 acquisition of a portfolio of properties from The Rubenstein Company (which the we refer to as the “TRC acquisition”), we acquired our interest in Two Logan Square, a 708,844 square foot office building in Philadelphia, Pennsylvania primarily through ownership of a second and third mortgage secured by this property. This property is consolidated, as the borrower is a VIE and we, through our ownership of the second and third mortgages, are the primary beneficiary. On October 21, 2020, we also acquired the $79.8 million first mortgage on the property from the third-party mortgage lender pursuant to an agreement with certain of the former owners. Under the agreement, we have agreed to not take title to Two Logan until the earlier of June 2026 or the occurrence of certain events related to the ownership interests of certain former owners. If we were to sell the restricted property before the expiration of the restricted period in a non-exempt transaction, we may be required to make significant payments to certain of the former owners of Two Logan Square on account of tax liabilities attributed to them. Additionally, we will be required to pay these certain former owners an amount estimated at approximately $0.6 million to redeem their residual interest in the fee owner of this property. The $0.6 million payment is included within "Other liabilities" on the consolidated balance sheets.

As part of our acquisition of properties, from time to time in tax-deferred transactions, we have agreed to provide certain of the prior owners of the acquired properties the right to guarantee our indebtedness. If we were to seek to repay the indebtedness guaranteed by the prior owner before the expiration of the applicable agreement, we would be required to provide the prior owner an opportunity to guaranty qualifying replacement debt. These debt maintenance agreements may limit our ability to refinance indebtedness on terms favorable to us.

We invest in properties and regularly incur capital expenditures in the ordinary course of business to maintain the properties. We believe that such expenditures enhance our competitiveness. We also enter into construction, utility and service contracts in the ordinary course of its business which may extend beyond one year. These contracts typically provide for cancellation with insignificant or no cancellation penalties.

In addition, during construction undertaken by real estate ventures we have provided, and expect to continue to provide, cost overrun, and completion guarantees, with rights of contribution among partners in ventures, as well as customary environmental indemnities and guarantees of customary exceptions to nonrecourse provisions in loan agreements. See Note 20, ''Commitments and Contingencies," to our Consolidated Financial Statements for further details on payment guarantees provided on the behalf of real estate ventures.

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Interest Rate Risk and Sensitivity Analysis

The analysis below presents the sensitivity of the market value of the Operating Partnership’s financial instruments to selected changes in market rates. The range of changes chosen reflects its view of changes which are reasonably possible over a one-year period. Market values are the present value of projected future cash flows based on the market rates chosen.

Our financial instruments consist of both fixed and variable rate debt. As of December 31, 2021, our consolidated debt consisted of unsecured notes with an outstanding principal balance of $1,500.0 million, all of which are fixed rate borrowings. We also have variable rate debt consisting of trust preferred securities with an outstanding principal balance of $78.6 million, a $600.0 million Credit Facility with an outstanding balance of $23.0 million and an unsecured term loan with an outstanding principal balance of $250.0 million. The unsecured term loan has been swapped to a fixed rate. All financial instruments were entered into for other than trading purposes and the net market value of these financial instruments is referred to as the net financial position. Changes in interest rates have different impacts on the fixed and variable rate portions of our debt portfolio. A change in interest rates on the fixed portion of the debt portfolio impacts the net financial instrument position, but has no impact on interest incurred or cash flows. A change in interest rates on the variable portion of the debt portfolio impacts the interest incurred and cash flows, but does not impact the net financial instrument position.

As of December 31, 2021, based on prevailing interest rates and credit spreads, the fair value of our unsecured notes was $1,588.8 million. For sensitivity purposes, a 100 basis point change in the discount rate equates to a change in the total fair value of our debt of approximately $15.9 million at December 31, 2021.

From time to time or as the need arises, we use derivative instruments to manage interest rate risk exposures and not for speculative or trading purposes. The total outstanding principal balance of our variable rate debt was approximately $351.6 million as of December 31, 2021. The total fair value of our variable rate debt was approximately $344.8 million at December 31, 2021. For sensitivity purposes, if market rates of interest increase by 100 basis points the fair value of our variable rate debt would decrease by approximately $10.1 million at December 31, 2021. If market rates of interest decrease by 100 basis points, the fair value of our outstanding variable rate debt would increase by approximately $11.3 million at December 31, 2021.

These amounts were determined solely by considering the impact of hypothetical interest rates on our financial instruments. Due to the uncertainty of specific actions we may undertake to minimize possible effects of market interest rate increases, this analysis assumes no changes in our financial structure.

Funds from Operations (FFO)

Pursuant to the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate FFO by adjusting net income/(loss) attributable to common unit holders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable consolidated real estate, impairment losses on investments in unconsolidated real estate ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated real estate ventures, real estate related depreciation and amortization, and after similar adjustments for unconsolidated real estate ventures. FFO is a non-GAAP financial measure. We believe that the use of FFO combined with the required GAAP presentations has been beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REITs’ operating results more meaningful. We consider FFO to be a useful measure for reviewing comparative operating and financial performance because, by excluding property impairments, gains or losses related to sales of previously depreciated operating real estate assets and real estate depreciation and amortization, FFO can help the investing public compare the operating performance of a company’s real estate between periods or as compared to other companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.

We consider net income, as defined by GAAP, to be the most comparable earnings measure to FFO. While FFO and FFO per unit are relevant and widely used measures of operating performance of REITs, FFO does not represent cash flow from operations or net income as defined by GAAP and should not be considered as alternatives to those measures in evaluating our liquidity or operating performance. We believe that to further understand our performance, FFO should be compared with our reported net income/(loss) attributable to common unit holders and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.

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The following table presents a reconciliation of net income attributable to common unitholders to FFO for the years ended December 31, 2021 and 2020:

	Year Ended December 31,
	2021		2020
	(amounts in thousands, except share information)
Net income attributable to common unitholders	$	11,948	$	306,896
Add (deduct):
Amount allocated to unvested restricted unitholders	421		410
Net gain on real estate venture transactions	(2,973)		(75)
Net gain on disposition of real estate	(142)		(289,461)
Company's share of impairment of an unconsolidated real estate venture	696		—
Depreciation and amortization:
Real property	144,261		143,877
Leasing costs including acquired intangibles	31,698		42,390
Company’s share of unconsolidated real estate ventures	52,455		37,291
Partners’ share of consolidated real estate ventures	(20)		(129)
Funds from operations	$	238,344	$	241,199
Funds from operations allocable to unvested restricted shareholders	(705)		(705)
Funds from operations available to common share and unit holders (FFO)	$	237,639	$	240,494
Weighted-average shares/units outstanding — basic (a)	171,770,843		172,907,713
Weighted-average shares/units outstanding — fully diluted (a)	173,165,898		173,298,710

(a)Includes common shares and partnership units outstanding through the years ended December 31, 2021 and December 31, 2020, respectively.

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk

See discussion in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in Item 7 herein.

Item 8.    Financial Statements and Supplementary Data

The financial statements and supplementary financial data of the Parent Company and the Operating Partnership and the reports thereon of PricewaterhouseCoopers LLP, an independent registered public accounting firm, with respect thereto, are listed under Items 15(a) and 15(b) and filed as part of this report. See Item 15., “Exhibits and Financial Statement Schedules.”

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A.    Controls and Procedures

Controls and Procedures (Parent Company)

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of the Parent Company’s management, including its principal executive officer and principal financial officer, the Parent Company’s management conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, the principal executive officer and the principal financial officer of the Parent Company concluded that the Parent Company’s disclosure controls and procedures were effective as of the end of the period covered by this annual report.

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Management’s Report on Internal Control Over Financial Reporting

The management of the Parent Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).

Under the supervision and with the participation of the Parent Company’s management, including its principal executive officer and principal financial officer, the Parent Company’s management conducted an evaluation of the effectiveness of the Parent Company’s internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this evaluation under the framework in Internal Control — Integrated Framework, the Parent Company’s management concluded that the Parent Company’s internal control over financial reporting was effective as of December 31, 2021.

The effectiveness of the Parent Company’s internal control over financial reporting as of December 31, 2021 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report that is included herein.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Parent Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Parent Company’s internal control over financial reporting.

Controls and Procedures (Operating Partnership)

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Under the supervision and with the participation of the Operating Partnership’s management, including its principal executive officer and principal financial officer, the Operating Partnership’s management conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act. Based on this evaluation, the principal executive officer and the principal financial officer of Operating Partnership concluded that the Operating Partnership’s disclosure controls and procedures were effective as of the end of the period covered by this annual report.

Management’s Report on Internal Control Over Financial Reporting

The management of the Operating Partnership is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).

Under the supervision and with the participation of the Operating Partnership’s management, including its principal executive officer and principal financial officer, the Operating Partnership’s management conducted an evaluation of the effectiveness of the Operating Partnership’s internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this evaluation under the framework in Internal Control — Integrated Framework, the Operating Partnership’s management concluded that the Operating Partnership’s internal control over financial reporting was effective as of December 31, 2021.

The effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, 2021 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in its report that is included herein.

Changes in Internal Control over Financial Reporting.

There have not been any changes in the Operating Partnership’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

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Item 9B.    Other Information

On February 22, 2022, the Compensation Committee (the “Compensation Committee”) of our Board of Directors approved the restatement of our change in control severance agreements with George, D. Johnstone, our Executive Vice President of Operations, and William D. Redd, our Executive Vice President and Senior Managing Director for the Austin and Metro DC Regions.

The restated change in control severance agreements (the “Restated Agreements”) each provide that if a change of control (a “CIC”) occurs and the executive’s employment ceases due to a termination by us without cause or a resignation by the executive with good reason, in either case within two years following the CIC, we will pay the executive two times (the “Severance Multiplier”) the sum of (1) the executive’s annual base salary in effect at the time of the CIC, plus (2) the greater of (A) the annual bonus most recently paid to the executive prior to the CIC, or (B) the executive’s target bonus for the year in which the CIC occurs. In addition, the executive will then also be entitled to continued group health coverage for 18 months and continued group term life insurance coverage for two years.

The Restated Agreements are substantially identical to the executives’ prior change in control severance agreements, except the Restated Agreements:

(i)    increase the Severance Multiplier from 1.75 to 2.0;

(ii)    reduce the period of continued group health coverage from 24 months to 18 months (the maximum period of continuation coverage generally available under COBRA upon termination of employment);

(iii)    condition the receipt of payments and benefits under the agreement on the executive’s execution of a release of claims; and

(iv)    limit transaction-related payments to each executive to the maximum amount that would not be subject to an excise tax under Section 4999 of the Internal Revenue Code, if such limit would increase the executive’s net after-tax proceeds.

The foregoing description of the Restated Agreements is qualified in its entirety by reference to the Form of Change in Control Agreement filed as Exhibit 10.28 to this Annual Report on Form 10-K and incorporated herein by reference.

Item 9C.    Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

None.

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PART III

Item 10.    Directors, Executive Officers and Corporate Governance

Incorporated herein by reference to the Company’s definitive proxy statement to be filed with respect to its 2022 Annual Meeting of Shareholders.

Item 11.    Executive Compensation

Incorporated herein by reference to the Company’s definitive proxy statement to be filed with respect to its 2022 Annual Meeting of Shareholders.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Incorporated herein by reference to the Company’s definitive proxy statement to be filed with respect to its 2022 Annual Meeting of Shareholders.

Item 13.    Certain Relationships and Related Transactions, and Director Independence

Incorporated herein by reference to the Company’s definitive proxy statement to be filed with respect to its 2022 Annual Meeting of Shareholders.

Item 14.    Principal Accountant Fees and Services

Incorporated herein by reference to the Company’s definitive proxy statement to be filed with respect to its 2022 Annual Meeting of Shareholders.

PART IV

Item 15.    Exhibits and Financial Statement Schedules.

(a)Financial Statements and Schedules of Brandywine Realty Trust

(b)Financial Statements and Schedules of Brandywine Operating Partnership

The financial statements and schedules of the Parent Company and the Operating Partnership listed below are filed as part of this report on the pages indicated.

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Index to Financial Statements and Schedules

	Page
Report of Independent Registered Public Accounting Firm (Brandywine Realty Trust) (PCAOB ID No. 238)	F-1
Report of Independent Registered Public Accounting Firm (Brandywine Operating Partnership, L.P.) (PCAOB ID No. 238)	F-3
Financial Statements of Brandywine Realty Trust
Consolidated Balance Sheets as of December 31, 2021 and 2020	F-5
Consolidated Statements of Operations for the Years Ended December 31, 2021, 2020 and 2019	F-6
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2021, 2020 and 2019	F-7
Consolidated Statements of Beneficiaries’ Equity for the Years Ended December 31, 2021, 2020 and 2019	F-10
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021, 2020 and 2019	F-11
Financial Statements of Brandywine Operating Partnership, L.P.
Consolidated Balance Sheets as of December 31, 2021 and 2020	F-13
Consolidated Statements of Operations for the Years Ended December 31, 2021, 2020 and 2019	F-14
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2021, 2020 and 2019	F-15
Consolidated Statements of Partners’ Equity for the Years Ended December 31, 2021, 2020 and 2019	F-16
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021, 2020 and 2019	F-17
Notes to Consolidated Financial Statements (Brandywine Realty Trust and Brandywine Operating Partnership, L.P.)	F-19
Schedule II — Valuation and Qualifying Accounts (Brandywine Realty Trust and Brandywine Operating Partnership, L.P.) for the years ended December 31, 2021, 2020 and 2019	F-57
Schedule III — Real Estate and Accumulated Depreciation (Brandywine Realty Trust and Brandywine Operating Partnership, L.P.) at December 31, 2019 with reconciliations for the years ended December 31, 2021, 2020 and 2019	F-58

(c) Exhibits

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Exhibits Nos.	Description
3.1.1	Articles of Amendment and Restatement of Declaration of Trust of Brandywine Realty Trust (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on May 29, 2018 and incorporated herein by reference)
3.1.2	Articles Supplementary relating to opt-out of Maryland Unsolicited Takeover Act, filed with the State Department of Assessments and Taxation of Maryland on March 2, 2018 (previously filed as an Exhibit to Brandywine Realty Trust’s Form 8-K filed on March 6, 2018 and incorporated herein by reference)
3.1.3	Preferred Share Reclassification Articles Supplementary filed with the State Department of Assessments and Taxation of Maryland on March 2, 2018 (previously filed as an Exhibit to Brandywine Realty Trust’s Form 8-K filed on March 6, 2018 and incorporated herein by reference)
3.2.1	Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (the “Operating Partnership”) (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K dated December 17,1997 and incorporated herein by reference)
3.2.2	First Amendment to Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K dated December 17,1997 and incorporated herein by reference)
3.2.3	Second Amendment to the Amended and Restated Agreement of Limited Partnership Agreement of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K dated April 13, 1998 and incorporated herein by reference)
3.2.4	Third Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated May 14, 1998 and incorporated herein by reference)
3.2.5	Fourth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated October 13, 1998 and incorporated herein by reference)
3.2.6	Fifth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated October 13, 1998 and incorporated herein by reference)
3.2.7	Sixth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated October 13, 1998 and incorporated herein by reference)
3.2.8	Seventh Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference)
3.2.9	Eighth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference)
3.2.10	Ninth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference)
3.2.11	Tenth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference)
3.2.12	Eleventh Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference)
3.2.13	Twelfth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2003 and incorporated herein by reference)
3.2.14	Thirteenth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated September 21, 2004 and incorporated herein by reference)
3.2.15	Fourteenth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated January 10, 2006 and incorporated herein by reference)
3.2.16	Fifteenth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated August 18, 2006 and incorporated herein by reference)

49

3.2.17	Sixteenth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated August 9, 2010 and incorporated herein by reference)
3.2.18	Seventeenth Amendment to the Amended and Restated Agreement of Limited Partnership of Brandywine Operating Partnership, L.P. (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated April 11, 2012 and incorporated herein by reference)
3.2.19	List of partners of Brandywine Operating Partnership, L.P. (filed herewith)
3.3	Bylaws of Brandywine Realty Trust (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K dated May 29, 2018 and incorporated herein by reference)
4.1.1	Indenture dated October 22, 2004 by and among Brandywine Operating Partnership, L.P., Brandywine Realty Trust, certain subsidiaries of Brandywine Operating Partnership, L.P. named therein and The Bank of New York Mellon, as Trustee (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on  October 22, 2004 and incorporated herein by reference)
4.1.2	First Supplemental Indenture dated as of May 25, 2005 by and among Brandywine Operating Partnership, L.P., Brandywine Realty Trust, certain subsidiaries of Brandywine Operating Partnership, L.P. named therein and The Bank of New York Mellon, as Trustee (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on May 26, 2005 and incorporated herein by reference)
4.1.3	Second Supplemental Indenture dated as of October 4, 2006 by and among Brandywine Operating Partnership, L.P., Brandywine Realty Trust and The Bank of New York Mellon, as Trustee (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K dated October 4, 2006 and incorporated herein by reference)
4.1.4	Third Supplemental Indenture dated as of April 5, 2011 by and among Brandywine Operating Partnership, L.P., Brandywine Realty Trust and The Bank of New York Mellon, as Trustee (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on April 5, 2011 and incorporated herein by reference)
4.1.5	Form of 4.100% Guaranteed Notes due 2024 (previously filed as an exhibit to Brandywine Realty Trust’s Current Report on Form 8-K dated October 10, 2019 and incorporated herein by reference).
4.2.1	Form of 3.95% Guaranteed Notes due 2023 (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on December 18, 2012 and incorporated herein by reference)
4.2.2	Form of 4.550% Guaranteed Notes due 2029 (previously filed as an exhibit to Brandywine Realty Trust’s Current Report on Form 8-K dated October 10, 2019 and incorporated herein by reference).
4.3	Form of 4.10% Guaranteed Notes due 2024 (previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on September 17, 2014 and incorporated herein by reference)
4.4	Form of 4.55% Guaranteed Notes due 2029 previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on September 17, 2014 and incorporated herein by reference)
4.5	Form of 3.95% Guaranteed Notes due 2023 previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on November 17, 2017 and incorporated herein by reference)
4.6	Form of 3.95% Guaranteed Notes due 2027 previously filed as an exhibit to Brandywine Realty Trust's Form 8-K filed on November 17, 2017 and incorporated herein by reference)
4.7	Description of Brandywine Realty Trust's Securities (previously filed as an exhibit to Brandywine Realty Trust's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and incorporated herein by reference)
10.1	Amended and Restated Revolving Credit Agreement dated as of July 17, 2018 (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on July 20, 2018 and incorporated herein by reference)
10.2	Amended and Restated Term Loan C Agreement dated as of December 13, 2018 (previously filed as an exhibit to Brandywine Realty Trust's Form 10-K for the fiscal year ended December 31, 2018 and incorporated herein by reference)
10.3	Letter dated August 10, 2015 to Cohen & Steers Capital Management, Inc. relating to the waiver of share ownership limit, including Representations, Warranties and Agreements of Cohen & Steers Capital Management, Inc. (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on August 13, 2015 and incorporated herein by reference)
10.4	Letter to RREEF America LLC relating to waiver of share ownership limit (previously filed as an exhibit to Brandywine Realty Trust’s Form 10-K for the fiscal year ended December 31, 2009 and incorporated herein by reference)
10.5	Amended and Restated Employment Agreement dated as of February 9, 2007 of Gerard H. Sweeney** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K dated February 14, 2007 and incorporated herein by reference)

50

10.6	Letter Agreement dated March 1, 2012 modifying Amended and Restated Employment Agreement of Gerard H. Sweeney** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K dated March 7, 2012 and incorporated herein by reference)
10.7	Amended and Restated 1997 Long-Term Incentive Plan (as amended effective May 18, 2017)** (previously filed as Appendix A to Brandywine Realty Trust’s definitive Proxy Statement on Schedule 14A filed on April 4, 2017 and incorporated herein by reference)
10.8	Amendment No. 1 to Amended and Restated 1997 Long-Term Incentive Plan** (previously filed as an exhibit to Brandywine Realty Trust’s Form 10-Q for the quarter ended March 31, 2018 and incorporated herein by reference)
10.9	Brandywine Realty Trust Second Amended and Restated Executive Deferred Compensation Plan (as Amended and Restated, Effective January 1, 2021)** (previously filed as an exhibit to Brandywine Realty Trust’s Form 10-K for the year ended December 31, 2020 and incorporated herein by reference)
10.10	2007 Non-Qualified Employee Share Purchase Plan** (previously filed as an exhibit to Brandywine Realty Trust’s Form 10-Q for the quarter ended March 31, 2007 and incorporated herein by reference)
10.11	Form of Change in Control Agreement with Executive Officers (Wirth and DeVuono)** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on February 4, 2010 and incorporated herein by reference)
10.12	Forms of Incentive Share Option Agreement (March 2011) for Executive Officers** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 8, 2011 and incorporated herein by reference)
10.13	Forms of Non-Qualified Share Option Agreement (March 2011) for Executive Officers** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 8, 2011 and incorporated herein by reference)
10.14	Letter Agreement dated May 24, 2011 modifying options of President and Chief Executive Officer** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on May 24, 2011 and incorporated herein by reference)
10.15	Form of Incentive Compensation Clawback Agreement** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on February 26, 2015 and incorporated herein by reference)
10.16	Form of Three-Year Restricted Common Share Rights Award.** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 6, 2018 and incorporated herein by reference)
10.17	Schedule of Non-Employee Trustee Compensation** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 6, 2018 and incorporated herein by reference)
10.18	Form of Performance Unit Award Agreement** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on February 25, 2019 and incorporated herein by reference)
10.19	2019-2021 Performance Share Unit Program** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on February 25, 2019 and incorporated herein by reference)
10.2	Form of Three-Year Restricted Common Share Rights Award (with outperformance feature)** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on February 25, 2019 and incorporated herein by reference)
10.21	Form of Two-Year Restricted Common Share Rights Award** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on February 25, 2019 and incorporated herein by reference)
10.22	Form of Performance Unit Award Agreement** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 11, 2020 and incorporated herein by reference)
10.23	2020-2022 Performance Share Unit Program** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 11, 2020 and incorporated herein by reference)
10.24	Form of Restricted Common Share Rights Award (with outperformance feature)** (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 11, 2020 and incorporated herein by reference)
10.25	Form of 2021-2023 Performance Unit Award Agreement (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 10, 2021 and incorporated herein by reference).**
10.26	2021-2023 Performance Share Unit Program (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 10, 2021 and incorporated herein by reference).**
10.27	Form of Restricted Common Share Rights Award (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on March 10, 2021 and incorporated herein by reference).**
10.28	Form of Change in Control Agreement with Executive Officers (Johnstone, Neuman and Redd)** (filed herewith)
14.1	Code of Business Conduct and Ethics, as amended on December 6, 2016 (previously filed as an exhibit to Brandywine Realty Trust’s Form 8-K filed on December 9, 2016 and incorporated herein by reference)

51

21	List of subsidiaries (filed herewith)
23.1	Consent of PricewaterhouseCoopers LLP relating to financial statements of Brandywine Realty Trust (filed herewith)
23.2	Consent of PricewaterhouseCoopers LLP relating to financial statements of Brandywine Operating Partnership, L.P. (filed herewith)
31.1	Certification of the Chief Executive Officer of Brandywine Realty Trust pursuant to 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 (filed herewith)
31.2	Certification of the Chief Financial Officer of Brandywine Realty Trust pursuant to 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 (filed herewith)
31.3	Certification of the Chief Executive Officer of Brandywine Realty Trust, in its capacity as the general partner of Brandywine Operating Partnership, L.P., pursuant to 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 (filed herewith)
31.4	Certification of the Chief Financial Officer of Brandywine Realty Trust, in its capacity as the general partner of Brandywine Operating Partnership, L.P., pursuant to 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 (filed herewith)
32.1	Certification of the Chief Executive Officer of Brandywine Realty Trust pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.2	Certification of the Chief Financial Officer of Brandywine Realty Trust pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.3	Certification of the Chief Executive Officer of Brandywine Realty Trust, in its capacity as the general partner of Brandywine Operating Partnership, L.P., pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
32.4	Certification of the Chief Financial Officer of Brandywine Realty Trust, in its capacity as the general partner of Brandywine Operating Partnership, L.P., pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith)
99.1	Material Federal Income Tax Considerations (previously filed as an exhibit to Brandywine Realty Trust’s Form 10-Q for the quarter ended September 30, 2021 and incorporated herein by reference)
101.1	The following materials from the Annual Reports on Form 10-K of Brandywine Realty Trust and Brandywine Operating Partnership, L.P. for the year ended December 31, 2021 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statement of Equity, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements, detailed tagged and filed herewith.
104	Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

** Management contract or compensatory plan or arrangement

(d)Financial Statement Schedule: See Item 15 (a) and (b) above

52

Item 16.    Form 10-K Summary.

None.

53

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BRANDYWINE REALTY TRUST
By:	/s/ Gerard H. Sweeney
	Gerard H. Sweeney
	President and Chief Executive Officer

Date: February 24, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Michael J. Joyce	Chairman of the Board and Trustee	February 24, 2022
Michael J. Joyce
/s/ Gerard H. Sweeney	President, Chief Executive Officer and Trustee (Principal Executive Officer)	February 24, 2022
Gerard H. Sweeney
/s/ Thomas E. Wirth	Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 24, 2022
Thomas E. Wirth
/s/ Daniel Palazzo	Vice President and Chief Accounting Officer (Principal Accounting Officer)	February 24, 2022
Daniel Palazzo
/s/ Reginald DesRoches	Trustee	February 24, 2022
Reginald DesRoches
/s/ James C. Diggs	Trustee	February 24, 2022
James C. Diggs
/s/ Charles P. Pizzi	Trustee	February 24, 2022
Charles P. Pizzi
/s/ Terri A. Herubin	Trustee	February 24, 2022
Terri A. Herubin
/s/ H. Richard Haverstick, Jr.	Trustee	February 24, 2022
H. Richard Haverstick, Jr.

54

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BRANDYWINE OPERATING PARTNERSHIP, L.P.
By:	Brandywine Realty Trust, its General Partner
By:	/s/ Gerard H. Sweeney
	Gerard H. Sweeney
	President and Chief Executive Officer

Date: February 24, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Michael J. Joyce	Chairman of the Board and Trustee	February 24, 2022
Michael J. Joyce
/s/ Gerard H. Sweeney	President, Chief Executive Officer and Trustee (Principal Executive Officer)	February 24, 2022
Gerard H. Sweeney
/s/ Thomas E. Wirth	Executive Vice President and Chief Financial Officer (Principal Financial Officer)	February 24, 2022
Thomas E. Wirth
/s/ Daniel Palazzo	Vice President and Chief Accounting Officer (Principal Accounting Officer)	February 24, 2022
Daniel Palazzo
/s/ Reginald DesRoches	Trustee	February 24, 2022
Reginald DesRoches
/s/ James Diggs	Trustee	February 24, 2022
James Diggs
/s/ Charles P. Pizzi	Trustee	February 24, 2022
Charles P. Pizzi
/s/ Terri A. Herubin	Trustee	February 24, 2022
Terri A. Herubin
/s/ H. Richard Haverstick, Jr.	Trustee	February 24, 2022
H. Richard Haverstick, Jr.

55

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of Brandywine Realty Trust

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Brandywine Realty Trust and its subsidiaries (the “Company”) as of December 31, 2021 and 2020, and the related consolidated statements of operations, of comprehensive income, of beneficiaries’ equity and of cash flows for each of the three years in the period ended December 31, 2021, including the related notes and financial statement schedules listed in the index appearing under Item 15(a) (collectively referred to as the “consolidated financial statements”). We also have audited the Company's internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

F-1

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment Assessments of Real Estate Investments and Investments in Unconsolidated Real Estate Ventures 

As described in Notes 2, 3 and 4 to the consolidated financial statements, the Company’s gross carrying value of operating real estate investments was $3,473 million and its investments in unconsolidated real estate ventures was $436 million as of December 31, 2021. During 2021, the Company did not recognize an impairment related to real estate investments or an other than temporary impairment related to investments in unconsolidated real estate ventures. Management reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. For real estate investments, management analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets. Estimated future cash flows used in such analysis are based on management’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to, market rental rates, capitalization rates, and recent sales data for comparable real estate investments. At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Company’s investments in unconsolidated real estate ventures. An investment is other than temporarily impaired only if the fair value of the investment in an unconsolidated real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. 

The principal considerations for our determination that performing procedures relating to the impairment assessments of real estate investments and investments in unconsolidated real estate ventures is a critical audit matter are the significant judgment by management when evaluating the real estate investments and investments in unconsolidated real estate ventures for potential impairment. This in turn led to a high degree of auditor judgment and subjectivity in applying procedures and evaluating audit evidence related to (i) the estimated undiscounted future cash flows expected to be generated by the real estate investments and (ii) the identification of any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired. In addition, there was significant audit effort in evaluating (i) the significant assumptions relating to the estimated undiscounted future cash flows expected to be generated by the real estate investments, related to market rental rates and capitalization rates, and (ii) any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.  These procedures included testing the effectiveness of controls relating to the impairment assessments of real estate investments and investments in unconsolidated real estate ventures, including controls over management’s estimated undiscounted future cash flows expected to be generated by real estate investments and management’s identification of any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired. These procedures also included, among others, testing management’s process for (i) developing the estimated undiscounted future cash flows expected to be generated by the real estate investments, including the evaluation of the reasonableness of significant assumptions, the appropriateness of methods, the reasonableness of the model outputs and testing the completeness and accuracy of data provided by management, and (ii) identifying any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired.  Evaluating the reasonableness of significant assumptions relating to the estimated undiscounted future cash flows expected to be generated by the real estate investments, related to market rental rates and capitalization rates, involved considering past performance of the asset and whether the assumptions were consistent with evidence obtained in other areas of the audit. Evaluating management’s assessment of indications of other than temporary impairment in investments in unconsolidated real estate ventures involved considering whether any market economic conditions, past performance of the asset, or evidence obtained in other areas of the audit may be indicative of other than temporary impairment. 

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 24, 2022

We have served as the Company’s auditor since 2003.

F-2

Report of Independent Registered Public Accounting Firm

To the Partners of Brandywine Operating Partnership, L.P.

Opinions on the Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated balance sheets of Brandywine Operating Partnership, L.P. and its subsidiaries (the “Partnership”) as of December 31, 2021 and 2020, and the related consolidated statements of operations, of comprehensive income, of partners’ equity and of cash flows for each of the three years in the period ended December 31, 2021, including the related notes and financial statement schedules listed in the index appearing under Item 15(b) (collectively referred to as the “consolidated financial statements”). We also have audited the Partnership’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2021 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Partnership’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Partnership’s consolidated financial statements and on the Partnership’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or

F-3

disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Impairment Assessments of Real Estate Investments and Investments in Unconsolidated Real Estate Ventures 

As described in Notes 2, 3 and 4 to the consolidated financial statements, the Partnership’s gross carrying value of operating real estate investments was $3,473 million and its investments in unconsolidated real estate ventures was $436 million as of December 31, 2021. During 2021, the Partnership did not recognize an impairment related to real estate investments or an other than temporary impairment related to investments in unconsolidated real estate ventures. Management reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. For real estate investments, management analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets. Estimated future cash flows used in such analysis are based on management’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to, market rental rates, capitalization rates, and recent sales data for comparable real estate investments. At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Partnership’s investments in unconsolidated real estate ventures. An investment is other than temporarily impaired only if the fair value of the investment in an unconsolidated real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. 

The principal considerations for our determination that performing procedures relating to the impairment assessments of real estate investments and investments in unconsolidated real estate ventures is a critical audit matter are the significant judgment by management when evaluating the real estate investments and investments in unconsolidated real estate ventures for potential impairment. This in turn led to a high degree of auditor judgment and subjectivity in applying procedures and evaluating audit evidence related to (i) the estimated undiscounted future cash flows expected to be generated by the real estate investments and (ii) the identification of any indicators that the value of the Partnership’s investments in unconsolidated real estate ventures may be other than temporarily impaired. In addition, there was significant audit effort in evaluating (i) the significant assumptions relating to the estimated undiscounted future cash flows expected to be generated by the real estate investments, related to market rental rates and capitalization rates, and (ii) any indicators that the value of the Partnership’s investments in unconsolidated real estate ventures may be other than temporarily impaired.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.  These procedures included testing the effectiveness of controls relating to the impairment assessments of real estate investments and investments in unconsolidated real estate ventures, including controls over management’s estimated undiscounted future cash flows expected to be generated by real estate investments and management’s identification of any indicators that the value of the Partnership’s investments in unconsolidated real estate ventures may be other than temporarily impaired. These procedures also included, among others, testing management’s process for (i) developing the estimated undiscounted future cash flows expected to be generated by the real estate investments, including the evaluation of the reasonableness of significant assumptions, the appropriateness of methods, the reasonableness of the model outputs and testing the completeness and accuracy of data provided by management, and (ii) identifying any indicators that the value of the Partnership’s investments in unconsolidated real estate ventures may be other than temporarily impaired.  Evaluating the reasonableness of significant assumptions relating to the estimated undiscounted future cash flows expected to be generated by the real estate investments, related to market rental rates and capitalization rates, involved considering past performance of the asset and whether the assumptions were consistent with evidence obtained in other areas of the audit. Evaluating management’s assessment of indications of other than temporary impairment in investments in unconsolidated real estate ventures involved considering whether any market economic conditions, past performance of the asset, or evidence obtained in other areas of the audit may be indicative of other than temporary impairment. 

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 24, 2022

We have served as the Partnership’s auditor since 2003.

F-4

BRANDYWINE REALTY TRUST

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)

	December 31, 2021		December 31, 2020
ASSETS
Real estate investments:
Operating properties	$	3,472,602	$	3,474,109
Accumulated depreciation	(957,450)		(896,561)
Right of use asset - operating leases, net	20,313		20,977
Operating real estate investments, net	2,535,465		2,598,525
Construction-in-progress	277,237		210,311
Land held for development	114,604		117,984
Prepaid leasehold interests in land held for development, net	27,762		39,185
Total real estate investments, net	2,955,068		2,966,005
Assets held for sale, net	562		7,349
Cash and cash equivalents	27,463		46,344
Accounts receivable	11,875		13,536
Accrued rent receivable, net of allowance of $4,133 and $5,086 as of December 31, 2021 and December 31, 2020, respectively	167,210		155,372
Investment in unconsolidated real estate ventures	435,506		401,327
Deferred costs, net	86,862		84,856
Intangible assets, net	28,556		48,570
Other assets	133,094		176,747
Total assets	$	3,846,196	$	3,900,106
LIABILITIES AND BENEFICIARIES' EQUITY
Unsecured credit facility	$	23,000	$	—
Unsecured term loan, net	249,608		249,084
Unsecured senior notes, net	1,580,978		1,581,511
Accounts payable and accrued expenses	150,151		121,982
Distributions payable	32,765		32,706
Deferred income, gains and rent	23,849		21,396
Intangible liabilities, net	12,981		18,448
Lease liability - operating leases	22,962		22,758
Other liabilities	48,683		47,573
Total liabilities	$	2,144,977	$	2,095,458
Commitments and contingencies (See Note 20)
Brandywine Realty Trust's Equity:
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 171,126,257 and 170,572,964 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	1,712		1,707
Additional paid-in-capital	3,146,786		3,138,152
Deferred compensation payable in common shares	18,491		17,516
Common shares in grantor trust, 1,169,703 and 1,160,494 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	(18,491)		(17,516)
Cumulative earnings	1,122,372		1,110,083
Accumulated other comprehensive loss	(2,020)		(7,561)
Cumulative distributions	(2,578,583)		(2,448,238)
Total Brandywine Realty Trust's equity	1,690,267		1,794,143
Noncontrolling interests	10,952		10,505
Total beneficiaries' equity	$	1,701,219	$	1,804,648
Total liabilities and beneficiaries' equity	$	3,846,196	$	3,900,106

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

F-5

BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share information)

	Year Ended December 31,
	2021		2020		2019
Revenue
Rents	$	451,519	$	513,504	$	554,665
Third party management fees, labor reimbursement and leasing	26,444		18,580		19,626
Other	8,856		2,768		6,126
Total revenue	486,819		534,852		580,417
Operating expenses
Property operating expenses	121,890		132,172		154,361
Real estate taxes	53,621		63,032		62,237
Third party management expenses	12,800		10,252		9,248
Depreciation and amortization	178,105		188,283		210,005
General and administrative expenses	30,153		30,288		32,156
Total operating expenses	396,569		424,027		468,007
Gain on sale of real estate
Net gain on disposition of real estate	142		289,461		356
Net gain on sale of undepreciated real estate	2,903		201		2,020
Total gain on sale of real estate	3,045		289,662		2,376
Operating income	93,295		400,487		114,786
Other income (expense):
Interest and investment income	8,295		1,939		2,318
Interest expense	(62,617)		(73,911)		(81,512)
Interest expense - amortization of deferred financing costs	(2,836)		(2,904)		(2,768)
Equity in loss of unconsolidated real estate ventures	(26,697)		(18,584)		(9,922)
Net gain on real estate venture transactions	2,973		75		11,639
Net income before income taxes	12,413		307,102		34,541
Income tax (provision) benefit	(47)		224		(12)
Net income	12,366		307,326		34,529
Net income attributable to noncontrolling interests	(77)		(1,799)		(262)
Net income attributable to Brandywine Realty Trust	12,289		305,527		34,267
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)		(410)		(396)
Net income attributable to Common Shareholders of Brandywine Realty Trust	$	11,868	$	305,117	$	33,871
Basic income per Common Share	$	0.07	$	1.77	$	0.19
Diluted income per Common Share	$	0.07	$	1.77	$	0.19
Basic weighted average shares outstanding	170,878,185		171,926,079		176,132,941
Diluted weighted average shares outstanding	172,273,240		172,317,076		176,686,813

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

F-6

BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Year Ended December 31,
	2021		2020		2019
Net income	$	12,366	$	307,326	$	34,529
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments	4,817		(5,972)		(8,210)
Amortization of interest rate contracts (1)	752		752		770
Total comprehensive income (loss)	5,569		(5,220)		(7,440)
Comprehensive income	17,935		302,106		27,089
Comprehensive income attributable to noncontrolling interest	(105)		(1,770)		(221)
Comprehensive income attributable to Brandywine Realty Trust	$	17,830	$	300,336	$	26,868

(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.

F-7

BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY

For the Years ended December 31, 2021, 2020 and 2019

(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 (Loss)		Cumulative Distributions		Noncontrolling Interests		Total
BALANCE, December 31, 2018	176,873,324	977,120	$	1,770	$	3,200,312	$	14,021	$	(14,021)	$	775,625	$	5,029	$	(2,183,909)	$	12,201	$	1,811,028
Cumulative effect of accounting change											(5,336)								(5,336)
Net income											34,267						262		34,529
Other comprehensive loss													(7,399)				(41)		(7,440)
Repurchase and retirement of Common Shares of Beneficial Interest	(1,337,169)		(13)		(17,268)														(17,281)
Issuance of partnership interest in consolidated real estate ventures																	27		27
Purchase of partnership interest in consolidated real estate venture					(983)												(1,197)		(2,180)
Redemption of LP Units	1,245				16												(16)		—
Share-based compensation activity	845,210	41,342	9		10,018														10,027
Share Issuance from/(to) Deferred Compensation Plan	97,485	87,080					2,195		(2,195)										—
Reallocation of Noncontrolling interest					63												(63)		—
Distributions declared ($0.76 per share)															(134,324)		(747)		(135,071)
BALANCE, December 31, 2019	176,480,095	1,105,542	$	1,766	$	3,192,158	$	16,216	$	(16,216)	$	804,556	$	(2,370)	$	(2,318,233)	$	10,426	$	1,688,303
Net income											305,527						1,799		307,326
Other comprehensive loss													(5,191)				(29)		(5,220)
Repurchase and retirement of Common Shares of Beneficial Interest	(6,248,483)		(62)		(59,937)														(59,999)
Sale of partnership interest in consolidated real estate venture																	(1,017)		(1,017)
Distributions from consolidated real estate ventures																	(22)		(22)
Share-based compensation activity	309,096	50,967	3		6,233														6,236
Share Issuance from/(to) Deferred Compensation Plan	32,256	3,985			(206)		1,300		(1,300)										(206)
Reallocation of Noncontrolling interest					(96)												96		—
Distributions declared ($0.76 per share)															(130,005)		(748)		(130,753)
BALANCE, December 31, 2020	170,572,964	1,160,494	$	1,707	$	3,138,152	$	17,516	$	(17,516)	$	1,110,083	$	(7,561)	$	(2,448,238)	$	10,505	$	1,804,648
Net income											12,289						77		12,366
Other comprehensive income													5,541				28		5,569
Issuance of Common Shares of Beneficial Interest	226,695		3		3,049														3,052
Issuance of partnership interest in consolidated real estate ventures																	2,765		2,765
Redemption of LP Units																	(2,334)		(2,334)
Share-based compensation activity	344,656	70,645	2		6,352														6,354
Share Issuance from/(to) Deferred Compensation Plan	(18,058)	(61,436)			(198)		975		(975)										(198)
Reallocation of Noncontrolling interest					(569)												569		—
Distributions declared $0.76 per share)															(130,345)		(658)		(131,003)
BALANCE, December 31, 2021	171,126,257	1,169,703	$	1,712	$	3,146,786	$	18,491	$	(18,491)	$	1,122,372	$	(2,020)	$	(2,578,583)	$	10,952	$	1,701,219

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

F-10

BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Net income	$	12,366	$	307,326	$	34,529
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	178,105		188,283		210,005
Amortization of deferred financing costs	2,836		2,904		2,768
Amortization of debt discount/(premium), net	(1,951)		(568)		189
Amortization of stock compensation costs	7,130		6,627		6,876
Straight-line rent income	(13,485)		(14,743)		(11,369)
Amortization of acquired above (below) market leases, net	(5,377)		(4,867)		(8,857)
Ground rent expense	918		1,455		1,470
Provision for doubtful accounts	—		1,049		(1,345)
Net gain on real estate venture transactions	(2,973)		(75)		(11,639)
Net gain on sale of interests in real estate	(3,045)		(289,662)		(2,376)
Loss from unconsolidated real estate ventures, net of distributions	26,697		18,584		10,242
Income tax provision (benefit)	47		(224)		12
Changes in assets and liabilities:
Accounts receivable	2,506		(2,031)		(248)
Other assets	(19,325)		(5,034)		9,368
Accounts payable and accrued expenses	2,974		14,374		(5,599)
Deferred income, gains and rent	2,986		(12,149)		9,319
Other liabilities	465		14,557		(9,115)
Net cash provided by operating activities	190,874		225,806		234,230
Cash flows from investing activities:
Acquisition of properties	—		(41,950)		—
Acquisition of partners interest in consolidated real estate venture	—		—		(2,181)
Proceeds from the sale of properties	10,303		278,114		41,795
Proceeds from real estate venture sales	—		—		9,730
Proceeds from insurance	1,250		—		—
Proceeds from note receivable	50,000		—		—
Issuance of note receivable	—		(50,000)		—
Proceeds from repayment of mortgage notes receivable	—		—		3,341
Capital expenditures for tenant improvements	(56,830)		(73,166)		(67,258)
Capital expenditures for redevelopments	(48,022)		(21,664)		(53,846)
Capital expenditures for developments	(30,269)		(65,420)		(77,192)
Advances for the purchase of tenant assets, net of repayments	270		1,488		(1,035)
Investment in unconsolidated real estate ventures	(31,643)		(719)		(253)
Deposits for real estate	(2,550)		—		(4,181)
Capital distributions from unconsolidated real estate ventures	27,028		9,001		35,906
Leasing costs paid	(19,852)		(17,394)		(15,485)
Net cash provided by (used in) investing activities	(100,315)		18,290		(130,659)
Cash flows from financing activities:
Repayments of mortgage notes payable	—		(94,993)		(7,595)
Proceeds from credit facility borrowings	154,000		318,000		348,500
Repayments of credit facility borrowings	(131,000)		(318,000)		(441,000)
Proceeds from unsecured notes	—		—		216,373
Debt financing costs paid	—		—		(1,965)
Exercise of stock options, net	(63)		47		3,771
Shares used for employee taxes upon vesting of share awards	(1,762)		(1,346)		(1,554)
Partner contributions to consolidated real estate venture	2,765		—		27
Repurchase and retirement of common shares	—		(60,000)		(17,282)
Redemption of limited partnership units	(2,334)		—		—
Distributions paid to shareholders	(130,255)		(131,150)		(134,140)
Distributions to noncontrolling interest	(687)		(747)		(747)
Net cash used in financing activities	(109,336)		(288,189)		(35,612)
Increase/(Decrease) in cash and cash equivalents and restricted cash	(18,777)		(44,093)		67,959
Cash and cash equivalents and restricted cash at beginning of year	47,077		91,170		23,211
Cash and cash equivalents and restricted cash at end of period	$	28,300	$	47,077	$	91,170
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	$	46,344	$	90,499	$	22,842
Restricted cash, beginning of period	733		671		369
Cash and cash equivalents and restricted cash, beginning of period	$	47,077	$	91,170	$	23,211

F-11

Cash and cash equivalents, end of period	$	27,463	$	46,344	$	90,499
Restricted cash, end of period	837		733		671
Cash and cash equivalents and restricted cash, end of period	$	28,300	$	47,077	$	91,170

	Year Ended December 31,
	2021		2020		2019
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the years ended December 31, 2021, 2020 and 2019 of $8,689, $4,650 and $2,246 respectively	$	72,391	$	79,498	$	66,508
Cash paid for income taxes	785		688		1,385
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid	32,765		32,706		33,815
Change in investment in real estate ventures as a result of deconsolidation	32,761		—		1,806
Change in operating real estate from deconsolidation of operating properties	(30,073)		427,710		—
Change in investment in real estate ventures from deconsolidation of operating properties	—		(296,262)		—
Change in mortgage notes payable from deconsolidation of operating properties	—		(220,271)		—
Change in other assets as a result of deconsolidation of operating properties	(2,688)		1,471		—
Change in capital expenditures financed through accounts payable at period end	22,744		(9,949)		(10,618)
Change in capital expenditures financed through retention payable at period end	(613)		284		(946)

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

F-12

BRANDYWINE OPERATING PARTNERSHIP, L.P.

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit and per unit information)

	December 31, 2021		December 31, 2020
ASSETS
Real estate investments:
Operating properties	$	3,472,602	$	3,474,109
Accumulated depreciation	(957,450)		(896,561)
Right of use asset - operating leases, net	20,313		20,977
Operating real estate investments, net	2,535,465		2,598,525
Construction-in-progress	277,237		210,311
Land held for development	114,604		117,984
Prepaid leasehold interests in land held for development, net	27,762		39,185
Total real estate investments, net	2,955,068		2,966,005
Assets held for sale, net	562		7,349
Cash and cash equivalents	27,463		46,344
Accounts receivable	11,875		13,536
Accrued rent receivable, net of allowance of $4,133 and $5,086 as of December 31, 2021 and December 31, 2020, respectively	167,210		155,372
Investment in unconsolidated real estate ventures	435,506		401,327
Deferred costs, net	86,862		84,856
Intangible assets, net	28,556		48,570
Other assets	133,094		176,747
Total assets	$	3,846,196	$	3,900,106
LIABILITIES AND PARTNERS' EQUITY
Unsecured credit facility	$	23,000	$	—
Unsecured term loan, net	249,608		249,084
Unsecured senior notes, net	1,580,978		1,581,511
Accounts payable and accrued expenses	150,151		121,982
Distributions payable	32,765		32,706
Deferred income, gains and rent	23,849		21,396
Intangible liabilities, net	12,981		18,448
Lease liability - operating leases	22,962		22,758
Other liabilities	48,683		47,573
Total liabilities	$	2,144,977	$	2,095,458
Commitments and contingencies (See Note 20)
Redeemable limited partnership units at redemption value; 823,983 and 981,634 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	11,140		11,566
Brandywine Operating Partnership, L.P.'s equity:
General Partnership Capital; 171,126,257 and 170,572,964 units issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	1,689,611		1,800,945
Accumulated other comprehensive loss	(2,366)		(7,935)
Total Brandywine Operating Partnership, L.P.'s equity	1,687,245		1,793,010
Noncontrolling interest - consolidated real estate ventures	2,834		72
Total partners' equity	$	1,690,079	$	1,793,082
Total liabilities and partners' equity	$	3,846,196	$	3,900,106

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

F-13

BRANDYWINE OPERATING PARTNERSHIP, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except unit and per unit information)

	Year Ended December 31,
	2021		2020		2019
Revenue
Rents	$	451,519	$	513,504	$	554,665
Third party management fees, labor reimbursement and leasing	26,444		18,580		19,626
Other	8,856		2,768		6,126
Total revenue	486,819		534,852		580,417
Operating expenses
Property operating expenses	121,890		132,172		154,361
Real estate taxes	53,621		63,032		62,237
Third party management expenses	12,800		10,252		9,248
Depreciation and amortization	178,105		188,283		210,005
General and administrative expenses	30,153		30,288		32,156
Total operating expenses	396,569		424,027		468,007
Gain on sale of real estate
Net gain on disposition of real estate	142		289,461		356
Net gain on sale of undepreciated real estate	2,903		201		2,020
Total gain on sale of real estate	3,045		289,662		2,376
Operating income	93,295		400,487		114,786
Other income (expense):
Interest and investment income	8,295		1,939		2,318
Interest expense	(62,617)		(73,911)		(81,512)
Interest expense - amortization of deferred financing costs	(2,836)		(2,904)		(2,768)
Equity in loss of unconsolidated real estate ventures	(26,697)		(18,584)		(9,922)
Net gain on real estate venture transactions	2,973		75		11,639
Net income before income taxes	12,413		307,102		34,541
Income tax (provision) benefit	(47)		224		(12)
Net income	12,366		307,326		34,529
Net (income) loss attributable to noncontrolling interests - consolidated real estate ventures	3		(20)		(69)
Net income attributable to Brandywine Operating Partnership	12,369		307,306		34,460
Nonforfeitable dividends allocated to unvested restricted unitholders	(421)		(410)		(396)
Net income attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P.	$	11,948	$	306,896	$	34,064
Basic income per Common Partnership Unit	$	0.07	$	1.77	$	0.19
Diluted income per Common Partnership Unit	$	0.07	$	1.77	$	0.19
Basic weighted average common partnership units outstanding	171,770,843		172,907,713		177,114,932
Diluted weighted average common partnership units outstanding	173,165,898		173,298,710		177,668,804

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

F-14

BRANDYWINE OPERATING PARTNERSHIP, L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands)

	Year Ended December 31,
	2021		2020		2019
Net income	$	12,366	$	307,326	$	34,529
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments	4,817		(5,972)		(8,210)
Amortization of interest rate contracts (1)	752		752		770
Total comprehensive income (loss)	5,569		(5,220)		(7,440)
Comprehensive income	17,935		302,106		27,089
Comprehensive (income) loss attributable to noncontrolling interest - consolidated real estate ventures	3		(20)		(69)
Comprehensive income attributable to Brandywine Operating Partnership	$	17,938	$	302,086	$	27,020

(1)Amounts reclassified from comprehensive income to interest expense within the Consolidated Statement of Operations.

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

F-15

BRANDYWINE OPERATING PARTNERSHIP, L.P.

CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY

For the Years ended December 31, 2021, 2020 and 2019

(in thousands, except Units)

	General Partner Capital
	Units	Amount		Accumulated Other Comprehensive Income (Loss)		Noncontrolling Interest - Consolidated Real Estate Ventures		Total Partners' Equity
BALANCE, December 31, 2018	176,873,324	$	1,791,591	$	4,725	$	2,192	$	1,798,508
Cumulative effect of accounting change		(5,336)						(5,336)
Net income		34,460				69		34,529
Other comprehensive loss				(7,440)				(7,440)
Deferred compensation obligation	97,485							—
Conversion of LP Units to common shares	1,245	16						16
Repurchase and retirement of LP units	(1,337,169)	(17,297)						(17,297)
Issuance of partnership interest in consolidated real estate ventures						27		27
Share-based compensation activity	845,210	10,027						10,027
Purchase of partnership interest in consolidated real estate venture		(983)				(1,197)		(2,180)
Adjustment of redeemable partnership units to liquidation value at period end		(3,615)						(3,615)
Distributions declared to general partnership unitholders ($0.76 per unit)		(134,324)						(134,324)
BALANCE, December 31, 2019	176,480,095	$	1,674,539	$	(2,715)	$	1,091	$	1,672,915
Net income		307,306				20		307,326
Other comprehensive loss				(5,220)				(5,220)
Deferred compensation obligation	32,256	(206)						(206)
Repurchase and retirement of LP units	(6,248,483)	(59,999)						(59,999)
Distributions from consolidated real estate ventures						(22)		(22)
Share-based compensation activity	309,096	6,236						6,236
Sale of partnership interest to consolidated real estate venture						(1,017)		(1,017)
Adjustment of redeemable partnership units to liquidation value at period end		3,074						3,074
Distributions declared to general partnership unitholders $0.76 per unit)		(130,005)						(130,005)
BALANCE, December 31, 2020	170,572,964	$	1,800,945	$	(7,935)	$	72	$	1,793,082
Net income		12,369				(3)		12,366
Other comprehensive income				5,569				5,569
Deferred compensation obligation	(18,058)	(198)						(198)
Issuance of LP Units	226,695	3,052						3,052
Repurchase and retirement of LP units		(2,334)						(2,334)
Issuance of partnership interest in consolidated real estate ventures						2,765		2,765
Share-based compensation activity	344,656	6,354						6,354
Adjustment of redeemable partnership units to liquidation value at period end		(232)						(232)
Distributions declared to general partnership unitholders ($0.76 per unit)		(130,345)						(130,345)
BALANCE, December 31, 2021	171,126,257	$	1,689,611	$	(2,366)	$	2,834	$	1,690,079

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

F-16

BRANDYWINE OPERATING PARTNERSHIP L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

	Year Ended December 31,
	2021		2020		2019
Cash flows from operating activities:
Net income	$	12,366	$	307,326	$	34,529
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	178,105		188,283		210,005
Amortization of deferred financing costs	2,836		2,904		2,768
Amortization of debt discount/(premium), net	(1,951)		(568)		189
Amortization of stock compensation costs	7,130		6,627		6,876
Straight-line rent income	(13,485)		(14,743)		(11,369)
Amortization of acquired above (below) market leases, net	(5,377)		(4,867)		(8,857)
Ground rent expense	918		1,455		1,470
Provision for doubtful accounts	—		1,049		(1,345)
Net gain on real estate venture transactions	(2,973)		(75)		(11,639)
Net gain on sale of interests in real estate	(3,045)		(289,662)		(2,376)
Loss from unconsolidated real estate ventures, net of distributions	26,697		18,584		10,242
Income tax provision (benefit)	47		(224)		12
Changes in assets and liabilities:
Accounts receivable	2,506		(2,031)		(248)
Other assets	(19,325)		(5,034)		9,368
Accounts payable and accrued expenses	2,974		14,374		(5,599)
Deferred income, gains and rent	2,986		(12,149)		9,319
Other liabilities	465		14,557		(9,115)
Net cash provided by operating activities	190,874		225,806		234,230
Cash flows from investing activities:
Acquisition of properties	—		(41,950)		—
Acquisition of partners interest in consolidated real estate venture	—		—		(2,181)
Proceeds from the sale of properties	10,303		278,114		41,795
Proceeds from real estate venture sales	—		—		9,730
Proceeds from insurance	1,250		—		—
Proceeds from note receivable	50,000		—		—
Issuance of note receivable	—		(50,000)		—
Proceeds from repayment of mortgage notes receivable	—		—		3,341
Capital expenditures for tenant improvements	(56,830)		(73,166)		(67,258)
Capital expenditures for redevelopments	(48,022)		(21,664)		(53,846)
Capital expenditures for developments	(30,269)		(65,420)		(77,192)
Advances for the purchase of tenant assets, net of repayments	270		1,488		(1,035)
Investment in unconsolidated real estate ventures	(31,643)		(719)		(253)
Deposits for real estate	(2,550)		—		(4,181)
Capital distributions from unconsolidated real estate ventures	27,028		9,001		35,906
Leasing costs paid	(19,852)		(17,394)		(15,485)
Net cash provided by (used in) investing activities	(100,315)		18,290		(130,659)
Cash flows from financing activities:
Repayments of mortgage notes payable	—		(94,993)		(7,595)
Proceeds from credit facility borrowings	154,000		318,000		348,500
Repayments of credit facility borrowings	(131,000)		(318,000)		(441,000)
Proceeds from unsecured notes	—		—		216,373
Debt financing costs paid	—		—		(1,965)
Exercise of stock options, net	(63)		47		3,771
Shares used for employee taxes upon vesting of share awards	(1,762)		(1,346)		(1,554)
Partner contributions to consolidated real estate venture	2,765		—		27
Repurchase and retirement of common units	—		(60,000)		(17,282)
Redemption of limited partnership units	(2,334)		—		—
Distributions paid to preferred and common partnership units	(130,942)		(131,897)		(134,887)
Net cash used in financing activities	(109,336)		(288,189)		(35,612)
Increase/(Decrease) in cash and cash equivalents and restricted cash	(18,777)		(44,093)		67,959
Cash and cash equivalents and restricted cash at beginning of year	47,077		91,170		23,211
Cash and cash equivalents and restricted cash at end of period	$	28,300	$	47,077	$	91,170
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	$	46,344	$	90,499	$	22,842
Restricted cash, beginning of period	733		671		369
Cash and cash equivalents and restricted cash, beginning of period	$	47,077	$	91,170	$	23,211

F-17

Cash and cash equivalents, end of period	$	27,463	$	46,344	$	90,499
Restricted cash, end of period	837		733		671
Cash and cash equivalents and restricted cash, end of period	$	28,300	$	47,077	$	91,170

	Year Ended December 31,
	2021		2020		2019
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the years ended December 31, 2021, 2020 and 2019 of $8,689, $4,650 and $2,246 respectively	$	72,391	$	79,498	$	66,508
Cash paid for income taxes	785		688		1,385
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid	32,765		32,706		33,815
Change in investment in real estate ventures as a result of deconsolidation	32,761		—		1,806
Change in operating real estate from deconsolidation of operating properties	(30,073)		427,710		—
Change in investment in real estate ventures from deconsolidation of operating properties	—		(296,262)		—
Change in mortgage notes payable from deconsolidation of operating properties	—		(220,271)		—
Change in other assets as a result of deconsolidation of operating properties	(2,688)		1,471		—
Change in capital expenditures financed through accounts payable at period end	22,744		(9,949)		(10,618)
Change in capital expenditures financed through retention payable at period end	(613)		284		(946)

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

F-18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP

Brandywine Realty Trust (the "Parent Company") is a self-administered and self-managed real estate investment trust (“REIT”) engaged in the acquisition, development, redevelopment, ownership, management, and operation of a portfolio of office and mixed-use properties. The Parent Company owns its assets and conducts its operations through Brandywine Operating Partnership, L.P. (the "Operating Partnership") and subsidiaries of the Operating Partnership. The Parent Company is the sole general partner of the Operating Partnership and, as of December 31, 2021, owned a 99.5% interest in the Operating Partnership. The Parent Company’s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol “BDN.” The Parent Company, the Operating Partnership, and their consolidated subsidiaries are collectively referred to as the "Company."

As of December 31, 2021, the Company owned 81 properties that contained an aggregate of approximately 13.7 million net rentable square feet (collectively, the “Properties”). The Company’s core portfolio of operating properties (the “Core Properties”) excludes development properties, redevelopment properties, and properties held for sale. The Properties were comprised of the following as of December 31, 2021:

	Number of Properties	Rentable Square Feet
Office properties	72	12,097,300
Mixed-use properties	5	942,334
Core Properties	77	13,039,634
Development property	1	205,803
Redevelopment properties	3	432,699
The Properties	81	13,678,136

In addition to the Properties, as of December 31, 2021, the Company owned 176.1 acres of land held for development, of which 10.0 acres were held for sale. The Company also held a leasehold interest in one land parcel totaling 0.8 acres, acquired through a prepaid 99-year ground lease, and held options to purchase approximately 55.5 additional acres of undeveloped land. As of December 31, 2021, the total potential development that this inventory of land could support under current zoning and entitlements, including the parcels under option, amounted to an estimated 13.4 million square feet, of which 0.1 million square feet relates to the 10.0 acres held for sale. 

As of December 31, 2021, the Company also owned economic interests in nine unconsolidated real estate ventures (see Note 4, ''Investment in Unconsolidated Real Estate Ventures” for further information). The Properties and the properties owned by the unconsolidated real estate ventures are primarily located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. 

All references to building square footage, rentable square feet, acres, occupancy percentage, the number of buildings, and tax basis are unaudited.

The Company conducts its third-party real estate management services business primarily through seven management companies (collectively, the “Management Companies”): Brandywine Realty Services Corporation (“BRSCO”), BDN Management Inc. (“BMI”), Brandywine Properties I Limited, Inc. (“BPI”), BDN Brokerage, LLC (“BBL”), Brandywine Properties Management, L.P. (“BPM”), Brandywine Brokerage Services, LLC (“BBS”), and BDN GC Services LLC ("BGCS"). Each of BRSCO, BMI and BPI is a taxable REIT subsidiary. BBS, BBL, BPM, and BGCS are tax disregarded entities wholly owned by the taxable REIT subsidiary entities. As of December 31, 2021, the Operating Partnership owned, directly and indirectly, 100% of each of BRSCO, BMI, BPI, BBL, BPM, BBS, and BGCS. As of December 31, 2021, the Management Company subsidiaries were managing properties containing an aggregate of approximately 23.1 million net rentable square feet, of which approximately 13.7 million net rentable square feet related to Properties owned by the Company and approximately 9.4 million net rentable square feet related to properties owned by third parties and unconsolidated real estate ventures.

F-19

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change in Depreciable Lives of Real Estate Investments

In accordance with its policy, the Company reviews the estimated useful lives of its real estate investments on an ongoing basis. The estimated useful lives of seven operating properties in Austin, Texas were modified to reflect the estimated periods during which these assets will remain in service pursuant to the Company's Uptown ATX master development plans. The estimated useful lives of these properties were decreased from approximately 35 years to approximately 12 years coinciding with the remaining terms of in-place leases. The effect of this change in estimate was a $9.8 million increase in depreciation expense during the year ended December 31, 2021.

Principles of Consolidation

The Company consolidates variable interest entities (“VIEs”) in which it is considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct those matters that most significantly impact the activities of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. For entities that the Company has the obligations to fund losses, its maximum exposure to loss is not limited to the carrying amount of its investments.

The Company continuously assesses its determination of the primary beneficiary for each entity and assesses reconsideration events that may cause a change in the original determinations. 

As of December 31, 2021 and 2020, the Company included in its consolidated balance sheets consolidated VIEs having total assets of $46.5 million and $49.2 million, respectively, and total liabilities of $21.0 million and $21.6 million, respectively.

When an entity is not deemed to be a VIE, the Company consolidates entities for which it has significant decision making control over the entity’s operations. The Company’s judgment with respect to its level of influence or control of an entity involves consideration of various factors including the form of the Company’s ownership interest, its representation in the entity’s governance, the size of its investment (including loans), estimates of future cash flows, its ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to replace the Company as manager and/or liquidate the venture, if applicable. The Company’s assessment of its influence or control over an entity affects the presentation of these investments in the Company’s consolidated financial statements. In addition to evaluating control rights, the Company consolidates entities in which the outside partner has no substantive kick-out rights to remove the Company as managing member. The portion of the consolidated entities that are not owned by the Company is presented as noncontrolling interest as of and during the periods consolidated. All intercompany transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("US GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Operating Properties

Operating properties are carried at historical cost less accumulated depreciation and impairment losses. The value of operating properties reflects their purchase price or development cost. Acquisition costs related to business combinations are expensed as incurred, whereas the costs related to asset acquisitions are capitalized as incurred. Costs incurred for the renovation and betterment of an operating property are capitalized to the Company’s investment in that property. Ordinary repairs and maintenance are expensed as incurred.

F-20

Purchase Price Allocation

For acquisitions of real estate or in-substance real estate that are accounted for as business combinations, we recognize the assets acquired (including the intangible value of acquired above- or below-market leases, acquired in-place leases and tenant relationship values), liabilities assumed, noncontrolling interests, and previously existing ownership interests at fair value as of the acquisition date. Any excess (deficit) of the consideration transferred relative to the fair value of the net assets acquired is accounted for as goodwill (bargain purchase gain). Acquisition costs related to business combinations are expensed as incurred.

Acquisitions of real estate and in-substance real estate that do not meet the definition of a business are accounted for as asset acquisitions. The Company generally expects that acquisitions of real estate or in-substance real estate will not meet the definition of business and therefore are accounted for as asset acquisitions, unless specifically noted otherwise. The accounting model for asset acquisitions is similar to the accounting model for business combinations except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in recognition of goodwill or a bargain purchase gain. Additionally, because the accounting model for asset acquisitions is a cost accumulation model, preexisting interests in the acquired assets, if any, are not remeasured to fair value but continue to be accounted for at their historical cost. Direct acquisition costs are capitalized if an asset acquisition is probable. If we determine that an asset acquisition is no longer probable, no new costs are capitalized and all capitalized costs that are not recoverable are written off.

The purchase price is allocated to the acquired assets and assumed liabilities, including land and buildings, as if vacant based on highest and best use for the acquired assets. The Company assesses and considers fair value of the operating properties based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

The Company allocates the purchase price of properties considered to be business combinations and asset acquisitions to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Company’s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancellable term of the lease (including the below market fixed renewal periods that are considered probable, if applicable). Capitalized above-market lease values are amortized as a reduction of rental income over the remaining noncancellable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining noncancellable terms of the respective leases, including any below market fixed-rate renewal option periods that are considered probable.

Other intangible assets also include in-place leases based on the Company’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods. Factors considered by the Company in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance, and other operating expenses, and estimates of lost rents at market rates during the expected lease-up periods, which primarily range from four to twelve months. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing, and leasing activities in estimating the fair value of the tangible and intangible assets acquired. The Company also uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of the accounting standard governing asset retirement obligations and when necessary, will record a conditional asset retirement obligation as part of its purchase price. The Company also evaluates tenant relationships on a tenant-specific basis. On most of the Company’s acquisitions, this intangible has not been material and, as a result, no value has been assigned.

In the event that a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values and tenant relationship values, is charged to expense and market rate adjustments (above or below) are recorded to revenue.

F-21

Depreciation and Amortization

The costs of buildings and improvements are depreciated using the straight-line method based on the following useful lives: buildings and improvements (5 to 55 years) and tenant improvements (the shorter of (i) the life of the asset (1 to 16 years) or (ii) the lease term).

Construction-in-Progress

Project costs directly associated with the development or redevelopment and construction of a real estate project are capitalized as construction-in-progress. Construction-in-progress also includes costs related to ongoing tenant improvement projects. In addition, interest, real estate taxes, and other expenses that are directly associated with the Company’s development or redevelopment activities are capitalized beginning when activities necessary to ready the asset for its intended use are in progress and capital expenditures have been made and ending when the property is placed in service. Interest expense is capitalized using the Company’s weighted average interest rate. Internal direct costs are capitalized to projects in which qualifying expenditures are being incurred. See Note 3, ''Real Estate Investments," for more information related to the capitalization of project costs.

Ground Leases

The Company is the lessee under long-term ground leases classified as operating leases. The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilizes a market-based approach to estimate the IBR for each individual lease. The base IBR is estimated utilizing observable mortgage and corporate bond rates, which are then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease.

The right of use assets and lease liabilities are presented as “Right of use asset - operating leases, net” and “Lease liability - operating leases”, respectively, on the consolidated balance sheet as of December 31, 2021 and 2020, respectively. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations.

The most recent CPI adjustment is used to determine the present value of the lease payments for an indexed lease and ultimately the right of use asset and corresponding lease liability. Rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs.

Impairment of Real Estate Investments

The Company reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company updates leasing and other assumptions regularly, paying particular attention to real estate investments where there is an event or change in circumstances that indicates an impairment in value. Additionally, the Company considers strategic decisions regarding the future development plans for real estate investment under development and other market factors. For real estate investments to be held and used, the Company analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets over, in most cases, a 10-year hold period. If there is significant possibility that the Company will dispose of assets earlier, it analyzes the recoverability using a probability weighted analysis of the undiscounted future cash flows expected to be generated from the operations and eventual disposition of each asset using various probable hold periods. If the recoverability analysis indicates that the carrying value of the tested real estate investment is not recoverable, the real estate investment is written down to its fair value and an impairment is recognized in the amount of the excess of the carrying amount of the asset over its fair value. If and when the Company’s plans change, it revises its recoverability analysis to use cash flows expected from operations and eventual disposition of each asset using hold periods that are consistent with its revised plans.

Estimated future cash flows used in such analysis are based on the Company’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to market rental rates, capitalization rates, and recent sales data for comparable real estate investments. Future cash flows are discounted when

F-22

determining fair value of an asset. Most of these assumptions are influenced by our direct experience with the real estate investments and their markets as well as market data obtained from real estate leasing and brokerage firms.

Assets Held for Sale

The Company generally reclassifies assets to held for sale when the transaction has been approved by its Board of Trustees, or by officers vested with authority to approve the transaction, and there are no known significant contingencies relating to the sale of the real estate investment within one year of the consideration date and the consummation of the transaction is otherwise considered probable. When a real estate investment is designated as held for sale, the Company stops depreciating the real estate investment and estimates the real estate investment’s fair value, net of selling costs. If the determination is made that the estimated fair value, net of selling costs, is less than the net carrying value of the real estate investment, an impairment is recognized, reducing the net carrying value of the real estate investment to estimated fair value less selling costs. For periods in which a real estate investment is classified as held for sale, the Company classifies the assets and liabilities, as applicable, of the real estate investment as held for sale on the consolidated balance sheet for such periods.

Impairment of Land Held for Development

When demand for build-to-suit properties declines and the ability to sell land held for development deteriorates, or other market factors indicate possible impairment in the recoverability of land held for development, it is reviewed for impairment by comparing its fair value to its carrying value. If the estimated sales value is less than the carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is generally determined using a market valuation approach, comparing the subject property to recent comparable market transactions in a similar location; or using estimated cash flows.

Cash and Cash Equivalents

Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company maintains cash equivalents in money market accounts with financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. The Company does not invest its available cash balances in money market funds. As such, available cash balances are appropriately reflected as cash and cash equivalents on the consolidated balance sheets.

Restricted Cash

Restricted cash consists of cash held as collateral to provide credit enhancement for the Company’s mortgage debt, cash for property taxes, capital expenditures and tenant improvements. Restricted cash also includes cash held by qualified intermediaries for possible investments in like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code in connection with sales of the Company’s properties. Restricted cash is included in “Other assets” in the consolidated balance sheets.

Accounts Receivable and Accrued Rent Receivable

Generally, leases with tenants are accounted for as operating leases. Minimum lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payment terms are recorded as “Accrued rent receivable, net” on the consolidated balance sheets. Included in current tenant receivables are tenant reimbursements which are comprised of amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses that are recognized as revenue in the period in which the related expenses are incurred.

Accrued rent receivables are carried net of the allowances for doubtful accounts. The allowance for doubtful accounts is an estimate based on the Company's experience of the probability of future events confirming a loss and represents the estimated probable losses. The allowance is generally calculated by assigning risk factors by industry which are primarily based on the Company's historical collection and charge-off experience adjusted for current market conditions, which requires management's judgment.

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Investments in Unconsolidated Real Estate Ventures

Under the equity method, investments in real estate ventures are recorded initially at cost and subsequently adjusted for equity in earnings, contributions, distributions, and impairments. The Company generally allocates income and losses from the unconsolidated real estate ventures based on the venture's distribution priorities, which may be different from its stated ownership percentage. For real estate ventures that are constructing assets to commence planned principal operations, the Company capitalizes interest expense to the extent that it is recoverable using the Company’s weighted average interest rate of consolidated debt and its investment balance as a basis. Planned principal operations commence when a property is available to lease and at that point in time, the Company ceases capitalizing interest to its investment basis.

At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Company’s investments in real estate ventures. An investment is other than temporarily impaired only if the fair value of the investment in a real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. To the extent that an other than temporary impairment has occurred, an impairment charge is recorded in the amount of the excess of the carrying amount of the investment over the estimated fair value. Management is required to make significant judgments about the estimated fair value of its investments to determine if an impairment exists. Fair value is generally determined through income valuation approaches, including discounted cash flows and direct capitalization models.

When the Company acquires an interest in or contributes assets to a real estate venture project, the difference between the Company’s cost basis in the investment and the value of the real estate venture or asset contributed is amortized over the life of the related assets, intangibles, and liabilities and such adjustment is included in the Company’s share of equity in income of unconsolidated real estate ventures.

Deferred Costs

Certain costs incurred in connection with property leasing are capitalized as deferred leasing costs. Deferred leasing costs consist primarily of third-party and internal leasing commissions that are amortized using the straight-line method over the life of the respective lease which generally ranges from 1 to 16 years. Management re-evaluates the remaining useful lives of leasing costs in conjunction with changes in the respective lease term.

Notes Receivable

The Company accounts for notes receivable on its balance sheet at amortized cost, net of allowance for loan losses. Interest income is recognized over the term of the notes receivable and is calculated based on the contractual terms of each note agreement. At inception and on a quarterly basis, the Company evaluates notes receivable for the current estimate of expected credit losses over the contractual term using a probability-of-default method and reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses to reflect management's current estimate. Management considers performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor in its evaluation.

Notes receivable are placed on nonaccrual status when management determines, after considering economic and business conditions and collection efforts, that the loans are impaired, or collection of interest is doubtful. Uncollectible interest previously accrued is recognized as bad debt expense. Interest income on nonaccrual loans is recognized only to the extent that cash payments are received.

Deferred Financing Costs

Costs incurred in connection with debt financing are capitalized as a direct deduction from the carrying value of the debt, except for costs capitalized related to the Company’s unsecured credit facility, which are capitalized within the “Deferred costs, net” caption on the accompanying consolidated balance sheets. Deferred financing costs are charged to interest expense over the terms of the related debt agreements. Deferred financing costs consist primarily of loan fees which are amortized over the related loan term on a basis that approximates the effective interest method. Deferred financing costs are accelerated, when debt is extinguished, as part of the “Interest expense-amortization of deferred financing costs” caption within the Company’s consolidated statements of operations. Original issue discounts are recognized as part of the gain or loss on extinguishment of debt, as appropriate.

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Revenue Recognition

Rental Revenue

The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. The operating leases have various expiration dates. As of December 31, 2021 and 2020, the Company did not have any leases classified as direct-financing or sales-type leases.

Fixed lease payments under tenant leases, determined to be collectible, are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based.

Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis.

The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded an improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term.

For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are generally recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term.

The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and included in the "Rents" caption within the Company's consolidated statements of operations.

Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract.

Point of Sale Revenue

Point of sale revenue consists of parking, restaurant, and flexible stay revenue from the Company’s hotel operations. Point of sale service obligations are performed daily, and the customer obtains control of those services simultaneously as they are performed. Accordingly, revenue is recorded on an accrual basis as it is earned, coinciding with the services that are provided to the Company’s customers. Parking and flexible stay revenue is recognized within rents and restaurant income is recognized within other income on the consolidated statements of operations.

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Third party management fees, labor reimbursement, and leasing

The Company performs property management services for its managed real estate ventures and third-party property owners of real estate that consist of: (i) providing leasing services, (ii) property inspections, (iii) repairs and maintenance monitoring, and (iv) financial and accounting oversight. For these services, the Company earns management fees monthly, which are based on a fixed percentage of each managed property’s financial results, and is reimbursed for the labor costs incurred by its property management employees as services are rendered to the property owners. The Company determined that control over the services is passed to its customers simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to the Company’s customers.

Lease commissions are earned when the Company, as a broker for the third party property owner, executes a lease agreement with a tenant. Based on the terms of the Company’s lease commission contracts, the Company's performance obligation to the customer has been completed upon execution of each lease agreement. The Company’s lease commissions are earned based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component.

Development fee revenue is earned through two different sources: (i) the Company performs development services for third parties as an agent and earns fixed development fees based on a percentage of construction costs incurred over the construction period, and (ii) the Company acts as a general contractor on behalf of one of its managed real estate ventures. The Company acts as the principal construction company for the real estate ventures and records gross revenue as it provides construction services based on the quantifiable construction outputs.

In applying the cost based output method of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine its progress towards contract completion and to calculate the corresponding gross revenue and gross profit to recognize. For any costs that do not contribute to satisfying the Company’s performance obligations, it excludes such costs from its output methods of revenue recognition as the amounts are not reflective of transferring control of the outputs to the customer. The use of estimates in this calculation involves significant judgment.

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The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2021 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	149,441	$	113,748	$	62,545	$	12,410	$	8,020	$	(2,240)	$	343,924
Variable rent	41,585		10,358		34,850		646		2,660		(257)		89,842
Total lease revenue	191,026		124,106		97,395		13,056		10,680		(2,497)		433,766
Amortization of deferred market rents	2,064		(9)		3,322		—		—		—		5,377
Daily parking & hotel flexible stay	11,758		159		109		117		233		—		12,376
Total rents	204,848		124,256		100,826		13,173		10,913		(2,497)		451,519
Third party management fees, labor reimbursement and leasing	893		34		452		6,548		3,077		15,440		26,444
Other income	2,117		276		402		144		25		5,892		8,856
Total revenue	$	207,858	$	124,566	$	101,680	$	19,865	$	14,015	$	18,835	$	486,819

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2020 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	166,286	$	128,044	$	63,366	$	29,830	$	8,064	$	(2,412)	$	393,178
Variable rent	51,410		12,951		35,123		3,544		2,401		(1,343)		104,086
Total lease revenue	217,696		140,995		98,489		33,374		10,465		(3,755)		497,264
Amortization of deferred market rents	1,146		(12)		3,531		—		203		—		4,868
Daily parking & hotel flexible stay	10,777		179		49		135		232		—		11,372
Total rents	229,619		141,162		102,069		33,509		10,900		(3,755)		513,504
Third party management fees, labor reimbursement and leasing	927		39		689		6,541		2,560		7,824		18,580
Other income	1,482		412		224		173		9		468		2,768
Total revenue	$	232,028	$	141,613	$	102,982	$	40,223	$	13,469	$	4,537	$	534,852

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The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2019 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	178,481	$	125,969	$	62,232	$	39,420	$	7,834	$	(2,412)	$	411,524
Variable rent	58,580		14,282		34,748		4,029		3,080		(495)		114,224
Total lease revenue	237,061		140,251		96,980		43,449		10,914		(2,907)		525,748
Amortization of deferred market rents	3,745		(12)		4,638		—		486		—		8,857
Daily parking & hotel flexible stay	18,665		174		165		824		232		—		20,060
Total rents	259,471		140,413		101,783		44,273		11,632		(2,907)		554,665
Third party management fees, labor reimbursement and leasing	876		43		1,956		6,922		2,915		6,914		19,626
Other income	3,422		628		418		303		11		1,344		6,126
Total revenue	$	263,769	$	141,084	$	104,157	$	51,498	$	14,558	$	5,351	$	580,417

(a)Corporate includes intercompany eliminations necessary to reconcile to consolidated Company totals.

Income Taxes

Parent Company

The Parent Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to continue to qualify as a REIT, the Parent Company is required to, among other things, distribute at least 90% of its annual REIT taxable income to its shareholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Parent Company is not subject to federal and state (in states that follow federal rules) income taxes with respect to the portion of its income that meets certain criteria and is distributed annually to its shareholders. Accordingly, a nominal provision for federal and state (as applicable) income taxes is included in the accompanying consolidated financial statements with respect to the operations of the Parent Company. The Parent Company intends to continue to operate in a manner that allows it to meet the requirements for taxation as a REIT. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state (as applicable) income taxes and may not be able to qualify as a REIT for the four tax years following the year in which it first failed to qualify. The Parent Company is subject to certain local income taxes. Provision for federal income taxes is recorded in the income tax provision line item and state and local income taxes have been included in operating expenses in the Parent Company’s consolidated statements of operations.

The tax basis of the Parent Company’s assets was $3.1 billion and $2.9 billion for the years ended December 31, 2021 and December 31, 2020, respectively.

The Parent Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Parent Company’s ordinary income and (b) 95% of the Parent Company’s net capital gain exceeds cash distributions and certain taxes paid by the Parent Company. No excise tax was incurred in 2021, 2020 or 2019.

The Parent Company has elected to treat several of its subsidiaries as taxable REIT subsidiaries (each a “TRS”). A TRS is subject to federal, state and local income tax. In general, a TRS may perform non-customary services for tenants, hold assets that the Parent Company, as a REIT, cannot hold directly and generally may engage in any real estate or non-real estate related business. The Company’s taxable REIT subsidiaries did not have material tax provisions or deferred income tax items as of December 31, 2021 and December 31, 2020.

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Operating Partnership

In general, the Operating Partnership is not subject to federal and state income taxes, and accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. The partners of the Operating Partnership are required to include their respective share of the Operating Partnership’s profits or losses in their respective tax returns. The Operating Partnership’s tax returns and the amount of allocable partnership profits and losses are subject to examination by federal and state taxing authorities. For any year beginning on or after January 1, 2017, the Operating Partnership can be assessed with federal income tax in the course of an audit by the IRS. Under the partnership audit rules included in the Bipartisan Budget Act of 2015, the Operating Partnership has the option to make a push-out election and allocate the partnership adjustments to all the former partners for the tax year under audit.

The tax basis of the Operating Partnership’s assets was $3.1 billion and $2.9 billion for the years ended December 31, 2021 and December 31, 2020, respectively.

The Operating Partnership may elect to treat a subsidiary REIT under Sections 856 through 860 of the Code, if applicable. Each subsidiary REIT would be required to meet the requirements for treatment as a REIT under Sections 856 through 860 of the Code. If a subsidiary REIT fails to qualify as a REIT in any taxable year, that subsidiary REIT would be subject to federal and state income taxes and would not be able to qualify as a REIT for the four subsequent taxable years. Also, each subsidiary REIT would be subject to certain local income taxes.

The Operating Partnership has elected to treat several of its subsidiaries as TRSs, which are subject to federal, state and local income tax.

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders, as adjusted for unallocated earnings, if any, of certain securities, by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur from common shares issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options, and conversion of the noncontrolling interests in the Operating Partnership. Anti-dilutive shares are excluded from the calculation.

Earnings Per Unit

Basic earnings per unit is computed by dividing net income available to common unitholders, as adjusted for unallocated earnings, if any, of certain securities issued by the Operating Partnership, by the weighted average number of common unit equivalents outstanding during the year. Diluted earnings per unit reflects the potential dilution that could occur from units issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options. Anti-dilutive units are excluded from the calculation.

Share-Based Compensation Plans

The Parent Company maintains a shareholder-approved equity-incentive plan known as the Amended and Restated 1997 Long-Term Incentive Plan (the “1997 Plan”). The 1997 Plan is administered by the Compensation Committee of the Parent Company’s Board of Trustees. Under the 1997 Plan, the Compensation Committee is authorized to award equity and equity-based awards, including incentive stock options, non-qualified stock options, restricted share rights and performance-based share units. The Company's share-based employee compensation plan is described more fully in Note 15, ''Share Based Compensation, 401(k) Plan and Deferred Compensation."

Comprehensive Income

Comprehensive income is recorded in accordance with the provisions of the accounting standard for comprehensive income. The accounting standard establishes standards for reporting comprehensive income and its components in the financial statements. Comprehensive income includes the effective portions of changes in the fair value of derivatives.

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Accounting for Derivative Instruments and Hedging Activities

The Company accounts for its derivative instruments and hedging activities in accordance with the accounting standard for derivative and hedging activities. The accounting standard requires the Company to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them on the balance sheet as either an asset or liability. See disclosures below related to the accounting standard for fair value measurements and disclosures.

For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income while the ineffective portions are recognized in earnings.

The Company actively manages its ratio of fixed-to-floating rate debt. To manage its fixed and floating rate debt in a cost-effective manner, the Company, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts.

Fair Value Measurements

The Company estimates the fair value of its derivatives in accordance with the accounting standard for fair value measurements and disclosures. The accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access;

•Level 2 inputs are inputs, other than quoted prices included in Level 1, which are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and

•Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little if any, related market activity or information.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Non-financial assets and liabilities recorded at fair value on a non-recurring basis include non-financial assets and liabilities measured at fair value in a purchase price allocation and the impairment. The fair values assigned to the Company's purchase price allocations primarily utilize Level 3 inputs. The fair value assigned to the long-lived assets and equity method investments for which there was impairment recorded utilize Level 3 inputs.

Risks and Uncertainties - COVID-19

Currently, one of the most significant risks and uncertainties the Company faces is the potential adverse effect of the ongoing global COVID-19 pandemic, which has significantly slowed global economic activity and caused significant volatility in financial markets, causing many to fear a global recession. The responses of many countries, including the U.S., have included mandatory quarantines, restrictions on business activities, including construction activities, restrictions on group gatherings, restrictions on travel and mandatory closures. These actions have disrupted the global economy and supply chains and adversely impacted many industries, including owners and developers of real estate. Moreover, there is significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. economy and consumer confidence. Demand for space at the Company's properties is dependent on a variety of macroeconomic factors, such as employment levels, interest rates, changes in stock market valuations, rent levels and availability of competing space. The extent to which the COVID-19 pandemic impacts the Company's results will depend on

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future developments, many of which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, future action plans, and vaccination efforts. The COVID-19 pandemic has caused continued negative economic impacts, market volatility, and business disruption, which could negatively impact the Company's tenants’ ability to pay rent, the Company's ability to lease vacant space, and the Company's ability to complete development and redevelopment projects. These consequences, in turn, could materially impact the Company's results of operations.

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur.

3. REAL ESTATE INVESTMENTS

As of December 31, 2021 and 2020, the gross carrying value of the operating properties was as follows (in thousands):

	December 31, 2021		December 31, 2020
Land	$	410,144	$	407,514
Building and improvements	2,653,492		2,665,232
Tenant improvements	408,966		401,363
Total	$	3,472,602	$	3,474,109

Construction-in-Progress

Internal direct construction costs totaling $7.9 million in 2021, $8.4 million in 2020, and $7.4 million in 2019 and interest totaling $7.0 million in 2021, $4.6 million in 2020, and $3.2 million in 2019 were capitalized related to the development, redevelopment and construction of tenant improvements of certain properties and land holdings.

During the years ended December 31, 2021, 2020 and 2019, the Company’s internal direct construction costs are comprised entirely of capitalized salaries. The following table shows the amount of compensation costs (including bonuses and benefits) capitalized for the years presented (in thousands):

	December 31,
	2021		2020		2019
Development	$	4,815	$	4,802	$	3,047
Redevelopment	1,170		543		775
Tenant Improvements	1,917		3,021		3,609
Total	$	7,902	$	8,366	$	7,431

2021 Acquisitions

During the year ended December 31, 2021, the Company did not acquire any properties from a third party.

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2020 Acquisitions

The following table summarizes the property acquisitions during the year ended December 31, 2020 (dollars in thousands):

Property/Portfolio Name	Acquisition Date	Location	Property Type	Rentable Square Feet/Acres	Purchase Price (a)
145 King of Prussia Road	February 27, 2020	Radnor, PA	Land	7.75 acres	$	11,250
1505-11 Race Street	November 5, 2020	Philadelphia, PA	Office	119,763	$	9,700
250 King of Prussia Road (b)	November 30, 2020	Radnor, PA	Office	169,843	$	20,250

(a)Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties.

(b)This property was placed into redevelopment and is therefore included within Construction-in-progress on the consolidated balance sheets.

The Company accounted for the acquisition of 1501-11 Race Street as an asset acquisition and therefore capitalized $0.3 million of acquisition related costs. The Company utilized a number of sources in making estimates of fair value (including comparative sales transactions and market leasing assumptions) for purposes of allocating the purchase price to tangible and intangible assets acquired The acquisition values have been allocated as follows (in thousands):

	1505-11 Race Street
Building, land and improvements	$	9,723
Intangible assets acquired	2,422
Below market lease liabilities assumed	(2,193)
Total unencumbered acquisition value	9,952
Amortization period of intangible assets	1.5 years
Amortization period of below market liabilities assumed	1.5 years

2019 Acquisitions

During the year ended December 31, 2019, the Company did not acquire any properties from a third party.

Dispositions

The following table summarizes the property dispositions during the years ended December 31, 2021, 2020 and 2019 (dollars in thousands):

Property/Portfolio Name	Disposition Date	Location	Property Type	Rentable Square Feet/Acres	Sales Price		Gain/(Loss) on Sale (a)
1100 Lenox Drive	September 8, 2021	Lawrenceville, NJ	Land	5.0 acres	$	2,575	$	68
2100-2200 Lenox Drive	July 6, 2021	Lawrenceville, NJ	Land	35.2 acres	$	8,900	$	842
Mid-Atlantic Office Portfolio (b) (d)	December 21, 2020	Various	Office	1,128,645	$	192,943	$	15,164
One and Two Commerce Square (c)	July 21, 2020	Philadelphia, PA	Office	1,896,142	$	115,000	$	271,905
Keith Valley	June 15, 2020	Horsham, PA	Land	14.0 Acres	$	4,000	$	201
52 East Swedesford Road	March 19, 2020	Malvern, PA	Office	131,077	$	18,000	$	2,336
1900 Gallows Rd	September 11, 2019	Vienna, VA	Office	210,632	$	36,400	$	(367)
9 Presidential Boulevard	March 15, 2019	Bala Cynwyd, PA	Land	2.7 Acres	$	5,325	$	751

(a)Gain/(Loss) on Sale is net of closing and other transaction related costs.

(b)The Company sold a 60% equity interest in a portfolio of twelve suburban office properties containing an aggregate of 1.1 million square feet ("Mid-Atlantic Office Portfolio"), nine of which are located in the Pennsylvania suburbs and three of which are located in Maryland, to an unrelated third party for a gross sales price of $192.9 million. The transaction resulted in deconsolidation of the properties and formation of PA/MD NNN Office JV, LLC ("Mid-Atlantic Office JV"). The Company recorded its investment at fair value and recognized a gain of $15.2 million in "Net gain on disposition of real estate" on the consolidated statements of operations. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

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(c)The Company sold a 30% preferred equity interest in two office buildings located in Philadelphia, Pennsylvania, to an unrelated third party for $115.0 million (the "Commerce Square Venture Transaction"), which resulted in deconsolidation of the properties and formation of Brandywine Commerce I LP and Brandywine Commerce II LP (collectively, the "Commerce Square Venture"). The transaction valued the properties at $600.0 million. The Company recorded its investment at fair value and recognized a gain of $271.9 million in "Net gain on disposition of real estate" on the consolidated statements of operations. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

(d)The sales price includes $4.1 million of variable consideration held in escrow that will be released to the Company over a six to nine month holdback period if certain tenants remain in compliance with certain payment terms of their lease agreements. The Company estimated the amount of the variable consideration that it deemed probable of collection and included such amount in the transaction price. The amount estimated as probable of collection was received during 2021. The Company will continue to evaluate the probability of collection on the remaining holdback and recognize any changes to the amount deemed probable as incremental gain on sale.

In addition, on February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to a newly formed joint venture with an unaffiliated third party. The project is part of the Schuylkill Yards master development. The Company's investment in the project was valued at $34.8 million and the transaction resulted in deconsolidation of the property and conversion of Brandywine Opportunity Fund, L.P. (formerly a wholly-owned subsidiary of the Operating Partnership) to a real estate venture ("3025 JFK Venture"). The Company recorded its investment at fair value and recognized a gain of $2.0 million in "Net gain on sale of undepreciated real estate" on the consolidated statements of operations. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further information.

During the year ended December 31, 2019, the Company also recorded a $1.0 million gain related to contingent consideration received related to a land sale that closed in a prior period in the Other segment. The Company also received additional proceeds from a sale that closed in a prior year related to a property in the Metropolitan Washington, D.C. segment resulting in $0.7 million of additional gain on sale.

One Uptown Venture

On December 1, 2021, the Company entered into two joint venture agreements with affiliates of Canyon Partners Real Estate to commence development of One Uptown, a $328.4 million mixed-used project in Austin, Texas. One Uptown has been designed to deliver 348,000 square feet of Class-A workspace and 15,000 square feet of street-level retail (through the "office" joint venture) and 341 apartment residences and a public park (through the "multifamily" joint venture) and a six-story parking garage to be shared by the two joint ventures. The Company's partner in each of the two joint ventures has agreed, subject to customary funding conditions, including closing of the applicable construction loan, to fund approximately $57.5 million of the combined project costs in exchange for a 50% preferred equity interest in each of the two joint ventures, with the Company retaining a 50% common equity interest in each. The Company is in the process of securing a construction loan for each of the two joint ventures that would total approximately $213.4 million, representing 65% of the combined project costs. Under the terms of each of the joint venture agreements, the joint venture partner has no obligation to fund any portion of the applicable project costs until the closing of the applicable construction loan. This right prevents the Company from meeting the sale recognition criteria of ASC 606 until the applicable closings of the construction loans.

Held for Use Impairment

As of December 31, 2021, 2020, and 2019, the Company evaluated the recoverability of the carrying value of its properties that triggered assessment. Based on the analysis, no impairments were identified during the twelve months ended December 31, 2021, 2020, and 2019.

Held for Sale

As of December 31, 2021, the Company determined that the sale of two adjacent parcels of land within the Other segment totaling 10.0 acres was probable and classified these properties as held for sale. As such, $0.6 million was classified as “Assets held for sale, net” on the consolidated balance sheets. The Company closed on the sale of the two parcels of land on January 20, 2022 for an aggregate sales price of $1.6 million.

4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

As of December 31, 2021, the Company held ownership interests in nine unconsolidated real estate ventures for a net aggregate investment balance of $411.1 million, which includes a negative investment balance in one unconsolidated real estate venture of $24.4 million, reflected within "Other liabilities" on the consolidated balance sheets. As of December 31, 2021, four of the real estate ventures owned properties that contained an aggregate of approximately 8.2 million net rentable

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square feet of office space; two real estate ventures owned 1.4 acres of land held for development; one real estate venture owned 1.0 acres of land in active development; one real estate venture owned a mixed used tower comprised of 250 apartment units and 0.2 million net rentable square feet of office/retail space; and one real estate venture owned a residential tower that contained 321 apartment units.

The Company accounts for its interests in the unconsolidated real estate ventures, which range from 15% to 70%, using the equity method. Certain of the unconsolidated real estate ventures are subject to specified priority allocations of distributable cash.

The Company earned management fees from the unconsolidated real estate ventures of $8.1 million, $4.7 million and $4.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company earned leasing commissions from the unconsolidated real estate ventures of $3.8 million, $1.1 million and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $2.5 million and $1.2 million as of December 31, 2021 and 2020, respectively.

The amounts reflected in the following tables (except for the Company’s share of equity in income) are based on the financial information of the individual unconsolidated real estate ventures. The Company records operating losses of a real estate venture in excess of its investment balance if the Company is liable for the obligations of the real estate venture or is otherwise committed to provide financial support to the real estate venture.

The Company’s investment in the unconsolidated real estate ventures as of December 31, 2021 and 2020, and the Company’s share of the unconsolidated real estate ventures’ income (loss) for the years ended December 31, 2021 and 2020 was as follows (in thousands):

	Ownership Percentage	Carrying Amount				Company's Share of unconsolidated real estate venture Income (Loss)					Unconsolidated Real Estate Venture Debt at 100%, gross
		2021		2020		2021		2020		2019	2021		2020
Office Properties
Commerce Square Venture	70% (a)	$	247,798	$	253,128	$	(15,501)	$	(9,150)	—	$	213,069	$	219,168
Mid-Atlantic Office Venture	40% (a)	31,680		32,996		932		96		—	123,015		120,831
Brandywine - AI Venture LLC	50%	—		10,302		(721)		185		(2,800)	—		—
Herndon Innovation Center Metro Portfolio Venture, LLC	15%	15,844		16,019		(174)		(358)		(498)	207,302		207,302
MAP Venture	50%	(24,396)		(11,516)		(8,683)		(6,570)		(6,102)	184,263		185,000
PJP VII	25% (b)	—		—		—		—		190	—		—
PJP II	30% (b)	—		—		—		—		81	—		—
PJP VI	25% (b)	—		—		—		—		(185)	—		—
Other
4040 Wilson Venture (c)	50%	31,059		34,454		(2,258)		(2,162)		(368)	145,000		141,857
1919 Venture	50%	13,791		15,434		427		59		328	88,860		88,860
Development Properties
3025 JFK Venture	55%	56,370		—		(118)		—		—	—		—
JBG - 51 N Street (c)	70%	21,213		21,237		(402)		(457)		(313)	—		—
JBG - 1250 First Street Office (c)	70%	17,751		17,757		(199)		(227)		(255)	—		—
		$	411,110	$	389,811	$	(26,697)	$	(18,584)	(9,922)	$	961,509	$	963,018

(a)Ownership percentage represents the Company’s combined interest including preferred and common equity holdings. See "Commerce Square Venture" and "Mid-Atlantic Office JV" sections below for more information.

(b)On October 29, 2019, the Company sold its interest in PJP II, PJP VI and PJP VII. See "PJP Ventures" section below for more information on the disposal.

(c)This entity is a VIE.

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The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of December 31, 2021 and December 31, 2020 (in thousands):

	December 31, 2021		December 31, 2020
Net property	$	1,563,263	$	1,520,804
Other assets	434,687		488,805
Other liabilities	331,947		333,049
Debt, net	956,668		956,688
Equity (a)	709,335		719,872

(a)This amount does not include the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level.

The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the twelve-month periods ended December 31, 2021, 2020 and 2019 (in thousands):

	Year Ended December 31,
	2021		2020		2019
Revenue	$	214,792	$	150,276	$	132,358
Operating expenses	(117,273)		(85,812)		(71,784)
Interest expense, net	(30,569)		(22,661)		(21,908)
Depreciation and amortization	(97,147)		(70,805)		(53,331)
Provision for impairment	(1,393)		—		(5,664)
Loss on early extinguishment of debt	—		—		(1,231)
Net loss	$	(31,590)	$	(29,002)	$	(21,560)
Ownership interest %	Various		Various		Various
Company's share of net loss	$	(25,972)	$	(18,540)	$	(9,865)
Basis adjustments and other	(725)		(44)		(57)
Equity in loss of unconsolidated real estate ventures	$	(26,697)	$	(18,584)	$	(9,922)

As of December 31, 2021, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands):

2022	$	8,543
2023	477,649
2024	330,317
2025	—
2026	145,000
Thereafter	—
Total principal payments	961,509
Net deferred financing costs	(5,923)
Net original issue premium	1,082
Outstanding indebtedness	$	956,668

4040 Wilson Venture

The 4040 Wilson LLC Venture (“4040 Wilson”) consists of one property containing an aggregate of 225,000 square feet of office/retail and 250 apartment units, located in the Metropolitan Washington, D.C. segment. The Company and its partner each own a 50% interest in 4040 Wilson. The residential component and office/retail portion of 4040 Wilson were substantially complete and placed into service during the first quarter of 2020 and the first quarter of 2021, respectively. During the fourth quarter of 2021, 4040 Wilson refinanced the $150.0 million secured construction loan into a $155.0 million mortgage loan secured by the property. The interest rate on this loan is 1.8% over term SOFR and matures in December 2026.

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Brandywine - AI Venture

During the year ended December 31, 2021, Brandywine - AI Venture, recorded a $1.4 million held for sale impairment charge related to 3141 Fairview Park Drive. The Company’s share of the impairment charge was $0.7 million, which is reflected in “Equity in loss of Real Estate Ventures” in the consolidated statements of operations for the year ended December 31, 2021. The impairment was measured based on an executed sale agreement with a third-party. The Company determined that its investment in the real estate venture is not impaired as the Company's share of the distributable cash is in excess of the Company's basis in the real estate venture. On November 9, 2021, BDN AI Venture sold 3141 Fairview Park Drive, the last remaining office property, totaling 183,618 rentable square feet in Falls Church, Virginia, at an aggregate sales price of $27.6 million. The Company received cash proceeds of $12.6 million after closing costs. The Company recorded an $3.0 million gain within the caption "Net gain on real estate venture transactions" within its consolidated statements of operations for the year ended December 31, 2021 upon liquidation of the venture.

During 2019, BDN - AI Venture recorded a $5.6 million held for use impairment charge related to 3141 Fairview Park Drive. The Company’s share of the impairment charge was $2.8 million which is reflected in “Equity in loss of unconsolidated real estate ventures” in the consolidated statements of operations for the year ended December 31, 2019. The impairment was measured based on an appraisal of the property performed by a third party. The Company determined that its investment in the real estate venture was not impaired as the Company's share of the distributable cash was in excess of the Company's basis in the real estate venture.

During 2019, BDN - AI Venture transferred an office building located in Falls Church, Virginia containing 180,659 rentable square feet to the mortgage lender in full satisfaction of the lender’s outstanding $26.0 million mortgage loan. The mortgage loan was nonrecourse to the Company. The Company recognized its $2.2 million share of the gain on debt forgiveness in "Net gain on real estate venture transactions" in the consolidated statements of operations for the year ended December 31, 2019.

3025 JFK Venture

On February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to the 3025 JFK Venture. The Company's initial investment in this real estate venture at February 2, 2021 was $34.8 million. The real estate venture was formed to develop a 570,000 square foot mixed-use building at property under the long-term ground lease. The estimated project cost is approximately $287.3 million, and the joint venture partner has agreed, subject to customary funding conditions, to fund up to approximately $45.2 million of the project costs in exchange for a 45% preferred equity interest in the venture and the Company will retain a 55% preferred equity interest.

On July 23, 2021, the 3025 JFK Venture closed on a $186.7 million construction loan, which bears interest at 3.50% plus LIBOR (subject to a LIBOR floor of 0.25%) per annum and matures in July 2025. In addition to its $34.8 million credit for contribution of the leasehold interest at 3025 JFK Venture, the Company has funded $20.5 million of project costs as of December 31, 2021. The remaining project costs will be funded by the joint venture partner and the construction loan.

The Company has determined that the 3025 JFK Venture is a variable interest entity ("VIE"). As a result, the Company used the VIE model under the accounting standard for consolidation in order to determine whether to consolidate the 3025 JFK Venture. Based upon each member’s shared power over the activities of 3025 JFK Venture under the operating and related agreements, and the Company’s lack of control over the development and construction phases of the project, 3025 JFK Venture is accounted for under the equity method of accounting.

Mid-Atlantic Office JV

On December 21, 2020, the Company contributed a portfolio of twelve properties containing an aggregate of 1,128,645 square feet, nine of which are located in the Pennsylvania suburbs segment and three located in the Metropolitan Washington, D.C segment, to the Mid-Atlantic Office JV, for a gross sales price of $192.9 million. After the transaction, the Company owns approximately 25% of the equity interest in the Mid-Atlantic Office JV through a $20.0 million preferred equity holding and approximately 15% of the equity interest through a common equity interest (representing 20% of the total common equity), for a combined approximately 40% equity interest in the venture. On the closing date, Mid-Atlantic Office JV also obtained $147.4 million of third-party debt financing secured by the twelve properties within the venture, with an initial advance of $120.8 million. During the fourth quarter 2021, the Mid-Atlantic Office JV borrowed an additional

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$2.2 million. The remaining funds available under the loan are $24.4 million. The loan bears interest at LIBOR + 3.15% capped at a total maximum interest rate of 5.6% and matures on January 9, 2024.

Commerce Square Venture

On July 21, 2020, the Company sold a 30% preferred equity interest in the entities that own One Commerce Square and Two Commerce Square, two office properties containing 1,896,142 square feet in Philadelphia, Pennsylvania. After the transaction, the Company owns approximately 32% of the equity interest in Commerce Square Venture through preferred equity interest holdings and approximately 38% of the equity interest in Commerce Square Venture as the sole common equity holder, for a combined approximately 70% equity interest in the venture. The properties held by the venture remain encumbered by the existing mortgages.

PJP Ventures

On October 29, 2019, PJP II, PJP VII and PJP VI, three real estate ventures in which the Company owned a 25%-30% interest, each sold its sole operating office property, totaling 204,347 rentable square feet in Charlottesville, Virginia, at an aggregate sales price of $51.0 million. The Company received cash proceeds of $9.1 million after closing costs and related debt payoffs. The Company recorded an $8.0 million gain within the caption "Net gains on real estate venture transactions" within its consolidated statements of operations for the year ended December 31, 2019.

Herndon Innovation Center Metro Portfolio Venture, LLC

The Herndon Innovation Center Metro Portfolio Venture, LLC (“Herndon Innovation Center”) consists of eight properties containing an aggregate of 1,293,197 square feet, located in the Metropolitan Washington, D.C. segment. The Company and its partner own 15% and 85% interests in the Herndon Innovation Center, respectively.

On March 29, 2019, Herndon Innovation Center obtained $134.1 million of third-party debt financing, secured by four properties within the venture, with an initial advance of $113.1 million. The remaining funds available under the loan have not yet been drawn. The Company received $16.7 million for its share of the cash proceeds on April 12, 2019. The loan bears interest at LIBOR + 1.95% capped at a total maximum interest rate of 5.45% - 6.45% over the term of the loan and matures on March 29, 2024. On April 11, 2019, the venture obtained an additional $115.3 million of third-party debt financing secured by the remaining four properties within the venture, with an initial advance of $94.2 million. The remaining funds available under the loan have not yet been drawn. The loan bears interest at LIBOR + 1.80% capped at a total maximum interest rate of 6.3% and matures on April 11, 2024. On April 12, 2019, the Company received $13.8 million for its share of the cash proceeds from the financing.

MAP Venture

The MAP Venture owns 58 office properties that contain an aggregate of 3,924,783 square feet located in the Pennsylvania Suburbs, New Jersey/Delaware, Metropolitan Washington, D.C. and Richmond, Virginia ("MAP Venture"). The MAP Venture leases the land parcels under the 58 office properties through a ground lease that extends through February 2115. Annual payments by the MAP Venture, as tenant under the ground lease, initially total $11.9 million and increase 2.5% annually through November 2025. Thereafter, annual rental payments increase by 2.5% or CPI at the discretion of the lessor.

1919 Venture

1919 Venture owns a 29-story, 455,000 square foot mixed-use tower consisting of 321 luxury apartments, 24,000 square feet of commercial space and a 215-car structured parking facility. See Note 5, ''Debt and Preferred Equity Investments" for additional information regarding the related-party note receivable with 1919 Venture.

JBG Ventures

JBG Ventures consists of 51 N 50 Patterson, Holdings, LLC Venture ("51 N Street") and 1250 First Street Office, LLC Venture ("1250 First Street"), with the Company owning a 70.0% equity interest and JBG/DC Manager, LLC ("JBG") owning a 30.0% equity interest in each of the two ventures. 51 N Street owns 0.9 acres of undeveloped land and 1250 First Street, owns 0.5 acres of undeveloped land.

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5. DEBT AND PREFERRED EQUITY INVESTMENTS

Austin Preferred Equity Investment

On December 31, 2020, the Company invested $50.0 million in exchange for a preferred equity interest in a single-purpose entity that owned two stabilized office buildings located in Austin, Texas. The Company accounted for this mandatorily redeemable investment as a note receivable, which was included within "Other assets" on the consolidated balance sheets.The preferred equity interest accrued a 9.0% annual return, compounded and paid monthly. The investment was required to be redeemed no later than December 31, 2023 (subject to a one-year extension option). On September 3, 2021, the $50.0 million investment was redeemed prior to maturity. As a result, the Company recognized an incremental $2.8 million of income on early redemption related to its accelerated minimum return and exit fees paid in cash on the redemption date during the three months ended September 30, 2021, which is included in "Interest and investment income" on the consolidated statements of operations.

1919 Venture Note Receivable

During 2018, each of the Company and the other equity partner in 1919 Venture, an unconsolidated real estate venture, provided a $44.4 million mortgage loan to 1919 Venture and, as a result, the Company recorded a $44.4 million related-party note receivable from 1919 Venture. The loan bears interest at a fixed 4.0% per annum interest rate with a scheduled maturity on June 25, 2023. 1919 Venture used the proceeds from the loans to repay its then outstanding $88.8 million construction loan. See Note 4, ''Investment in Unconsolidated Real Estate Ventures” for further information regarding 1919 Venture. As of December 31, 2021, the debt investment was performing in accordance with its terms and remains on accrual status.

6. LEASES

Lessor Accounting

The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2021 are as follows (in thousands):

Year
2022	$	328,553
2023	327,981
2024	304,240
2025	274,216
2026	249,045
Thereafter	952,898

Lessee Accounting

As of December 31, 2021, the Company is the lessee under six long-term ground leases classified as "operating leases" in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed.

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The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands):

	Year Ended December 31,
Lease Cost	2021			2020
Fixed lease cost	$	2,100		$	2,100
Variable lease cost	43			45
Total	$	2,143		$	2,145
Weighted-average remaining lease term (years)	55.2			55.9
Weighted-average discount rate	6.3		%	6.3		%

Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 8 to 63 years. Lease payments on noncancellable leases at December 31, 2021 are as follows (in thousands):

Year	Minimum Rent
2022	$	1,248
2023	1,263
2024	1,305
2025	1,321
2026	1,338
Thereafter	107,793
Total lease payments	$	114,268
Less: Imputed interest	91,306
Present value of operating lease liabilities	$	22,962

The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses.

7. DEFERRED COSTS

As of December 31, 2021 and 2020, the Company’s deferred costs were comprised of the following (in thousands):

	December 31, 2021
	Total Cost		Accumulated Amortization		Deferred Costs, net
Leasing costs	$	143,895	$	(57,445)	$	86,450
Financing costs - Unsecured Credit Facility	6,299		(5,887)		412
Total	$	150,194	$	(63,332)	$	86,862

	December 31, 2020
	Total Cost		Accumulated Amortization		Deferred Costs, net
Leasing costs	$	139,207	$	(55,656)	$	83,551
Financing costs - Unsecured Credit Facility	6,299		(4,994)		1,305
Total	$	145,506	$	(60,650)	$	84,856

During the years ended December 31, 2021, 2020 and 2019, the Company capitalized internal direct leasing costs of $2.1 million, $1.6 million, and $1.7 million, respectively.

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8. INTANGIBLE ASSETS AND LIABILITIES

As of December 31, 2021 and 2020, the Company’s intangible assets/liabilities were comprised of the following (in thousands):

	December 31, 2021
	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease value	$	72,376	$	(44,066)	$	28,310
Tenant relationship value	167		(97)		70
Above market leases acquired	486		(310)		176
Total intangible assets, net	$	73,029	$	(44,473)	$	28,556
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired	$	27,025	$	(14,044)	$	12,981

	December 31, 2020
	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease value	$	91,552	$	(43,400)	$	48,152
Tenant relationship value	2,091		(1,938)		153
Above market leases acquired	530		(265)		265
Total intangible assets, net	$	94,173	$	(45,603)	$	48,570
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired	$	31,263	$	(12,815)	$	18,448

For the years ended December 31, 2021, 2020, and 2019, the Company accelerated the amortization of intangible assets by approximately $3.6 million, $0.3 million, and $4.5 million, respectively, as a result of tenant move-outs prior to the end of the associated lease term. For the years ended December 31, 2021, 2020, and 2019 the Company accelerated the amortization of approximately $0.6 million, $0.1 million, and $2.2 million of intangible liabilities as a result of tenant move-outs.

As of December 31, 2021, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands):

	Assets		Liabilities
2022	$	9,642	$	2,588
2023	6,724		1,540
2024	4,433		1,321
2025	3,255		1,044
2026	1,195		754
Thereafter	3,307		5,734
Total	$	28,556	$	12,981

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9. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of December 31, 2021 and 2020 (in thousands):

	December 31, 2021		December 31, 2020		Effective Interest Rate	Maturity Date
UNSECURED DEBT
$600 million Unsecured Credit Facility	$	23,000	$	—	LIBOR + 1.10%	July 2022	(a)
Seven-Year Term Loan - Swapped to fixed	250,000		250,000		2.87%	October 2022
$350.0M 3.95% Guaranteed Notes due 2023	350,000		350,000		3.87%	February 2023
$350.0M 4.10% Guaranteed Notes due 2024	350,000		350,000		3.78%	October 2024
$450.0M 3.95% Guaranteed Notes due 2027	450,000		450,000		4.03%	November 2027
$350.0M 4.55% Guaranteed Notes due 2029	350,000		350,000		4.30%	October 2029
Indenture IA (Preferred Trust I)	27,062		27,062		LIBOR + 1.25%	March 2035
Indenture IB (Preferred Trust I)	25,774		25,774		LIBOR + 1.25%	April 2035
Indenture II (Preferred Trust II)	25,774		25,774		LIBOR + 1.25%	July 2035
Principal balance outstanding	1,851,610		1,828,610
Plus: original issue premium (discount), net	8,187		10,137
Less: deferred financing costs	(6,211)		(8,152)
Total unsecured indebtedness	$	1,853,586	$	1,830,595

(a)The Company has the ability to extend the term of the Unsecured Credit Facility until July 2023 through two successive six-month extension options.

The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Parent Company has no material assets other than its investment in the Operating Partnership.

On July 17, 2018, the Company amended and restated its revolving credit agreement (as amended and restated, the “Unsecured Credit Facility”). The amendment and restatement, among other things: (i) maintained the total commitment of the revolving line of credit of $600.0 million; (ii) extended the maturity date from May 15, 2019 to July 15, 2022, with two six-month extensions at the Company’s election subject to specified conditions and subject to payment of an extension fee; (iii) reduced the interest rate margins applicable to Eurodollar loans; (iv) provided for an additional interest rate option based on a floating LIBOR rate; and (v) removed the covenant requiring the Company to maintain a minimum net worth. In connection with the amendments, the Company capitalized $2.7 million in financing costs, which will be amortized through the July 15, 2022 maturity date.

At the Company's option, loans outstanding under the Unsecured Credit Facility will bear interest at a rate per annum equal to (1) LIBOR plus between 0.775% and 1.45%, based on the Company's credit rating, or (2) a base rate equal to the greatest of (a) the Administrative Agent's prime rate, (b) the Federal Funds rate plus 0.5% or (c) LIBOR for a one month period plus 1.00%, in each case, plus a margin ranging from 0.0% to 0.45% based on the Company's credit rating. The Unsecured Credit Facility also contains a competitive bid option that allows banks that are part of the lender consortium to bid to make loan advances to the Company at a reduced interest rate. In addition, the Company is also obligated to pay (1) in quarterly installments a facility fee on the total commitment at a rate per annum ranging from 0.125% to 0.30% based on the Company's credit rating and (2) an annual fee on the undrawn amount of each letter or credit equal to the LIBOR Margin. Based on the Company's current credit rating, the LIBOR margin is 1.10% and the facility fee is 0.25%.

The terms of the Unsecured Credit Facility require that the Company maintain customary financial and other covenants, including: (i) a fixed charge coverage ratio greater than or equal to 1.5 to 1.00; (ii) a leverage ratio less than or equal to 0.60 to 1.00, subject to specified exceptions; (iii) a ratio of unsecured indebtedness to unencumbered asset value less than or equal to 0.60 to 1.00, subject to specified exceptions; (iv) a ratio of secured indebtedness to total asset value less than or equal to 0.40 to 1.00; and (v) a ratio of unencumbered cash flow to interest expense on unsecured debt greater than 1.75 to 1.00. In addition, the Unsecured Credit Facility restricts payments of dividends and distributions on shares in excess of 95% of the Company's funds from operations (FFO) except to the extent necessary to enable the Company to continue to qualify as a REIT for Federal income tax purposes.

The Company had $23.0 million of borrowings under the Unsecured Credit Facility as of December 31, 2021. During the twelve months ended December 31, 2021, the weighted-average interest rate on Unsecured Credit Facility borrowings was

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1.21% resulting in $0.4 million of interest expense. During the twelve months ended December 31, 2020 weighted-average interest rate on Unsecured Credit Facility borrowings was 1.48% resulting in $0.5 million of interest expense.

The Company was in compliance with all financial covenants as of December 31, 2021. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.

As of December 31, 2021, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands):

2022	$	273,000
2023	350,000
2024	350,000
2025	—
2026	—
Thereafter	878,610
Total principal payments	1,851,610
Net unamortized premiums/(discounts)	8,187
Net deferred financing costs	(6,211)
Outstanding indebtedness	$	1,853,586

10. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company determined the fair values disclosed below using available market information and discounted cash flow analyses as of December 31, 2021 and 2020, respectively. The discount rate used in calculating fair value is the sum of the current risk free rate and the risk premium on the date of measurement of the instruments or obligations. Considerable judgment is necessary to interpret market data and to develop the related estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize upon disposition. The use of different estimates and valuation methodologies may have a material effect on the fair value amounts shown. The Company believes that the carrying amounts reflected in the consolidated balance sheets at December 31, 2021 and 2020 approximate the fair values for cash and cash equivalents, accounts receivable, other assets and liabilities, accounts payable and accrued expenses because they are short-term in duration.

The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands):

	December 31, 2021				December 31, 2020
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
Unsecured notes payable	$	1,502,368	$	1,588,780	$	1,502,901	$	1,607,310
Variable rate debt	$	351,218	$	344,754	$	327,694	$	308,838
Notes receivable (b)	$	44,430	$	45,230	$	94,430	$	97,372

(a)Net of deferred financing costs of $5.8 million and $7.2 million for unsecured notes payable, $0.4 million and $0.9 million for variable rate debt as of December 31, 2021 and December 31, 2020, respectively.

(b)For further detail, refer to Note 5, ''Debt and Preferred Equity Investments.”

The Company used quoted market prices as of December 31, 2021 and December 31, 2020 to value the unsecured notes payable and, as such, categorized them as Level 2.

The inputs utilized to determine the fair value of the Company’s variable rate debt are categorized as Level 3. The fair value of the variable rate debt was determined using a discounted cash flow model that considered borrowing rates available to the Company for loans with similar terms and characteristics.

The inputs utilized to determine fair value of the Company's notes receivable are unobservable and, as such, were categorized as Level 3. Fair value was determined using a discounted cash flow model that considered the contractual interest and principal payments discounted at a blended interest rate of the notes receivable.

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For the Company’s Level 3 financial instruments for which fair value is disclosed, an increase in the discount rate used to determine fair value would result in a decrease to the fair value. Conversely, a decrease in the discount rate would result in an increase to the fair value.

Disclosure about the fair value of financial instruments is based upon pertinent information available to management as of December 31, 2021 and December 31, 2020. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts were not comprehensively revalued for purposes of these financial statements since December 31, 2021. Current estimates of fair value may differ from the amounts presented herein.

11. DERIVATIVE FINANCIAL INSTRUMENTS

Use of Derivative Financial Instruments

The Company’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate that any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks through derivative financial instruments.

The Company formally assesses, both at the inception of a hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that a derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company will discontinue hedge accounting prospectively for either the entire hedge or the portion of the hedge that is determined to be ineffective. The related ineffectiveness would be charged to the consolidated statement of operations.

The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with the provisions of the accounting standard for fair value measurements and disclosures, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2021 and December 31, 2020. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands).

Hedge Product	Hedge Type	Designation		Notional Amount				Strike		Trade Date	Maturity Date	Fair value
				12/31/2021		12/31/2020						12/31/2021		12/31/2020
Liabilities
Swap	Interest Rate	Cash Flow	(a)	$	250,000	$	250,000	2.868	%	October 8, 2015	October 8, 2022	$	(2,461)	$	(6,627)
Swap	Interest Rate	Cash Flow	(b)	—		25,774		3.300	%	December 22, 2011	January 30, 2021	—		(120)
				$	250,000	$	275,774

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(a)Hedging unsecured variable rate debt.

(b)On January 30, 2021, the interest rate hedge contract for this swap expired.

The Company measures its derivative instruments at fair value and records them in “Other assets” and (“Other liabilities”) on the Company’s consolidated balance sheets.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that the inputs utilized to determine the fair value of derivative instruments are classified in Level 2 of the fair value hierarchy.

Concentration of Credit Risk

Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, or are located in the same geographic region, or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. Management believes the current credit risk portfolio is reasonably well diversified and does not contain an unusual concentration of credit risk. No tenant accounted for 10% or more of the Company’s rents during 2021, 2020 and 2019.

12. LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY

Noncontrolling interests in the Parent Company’s financial statements relate to redeemable common limited partnership interests in the Operating Partnership held by parties other than the Parent Company and properties which are consolidated but not wholly owned by the Operating Partnership.

Operating Partnership

The aggregate book value of the noncontrolling interests associated with the redeemable common limited partnership interests in the accompanying consolidated balance sheet of the Parent Company was $8.2 million and $10.5 million as of December 31, 2021 and December 31, 2020, respectively. Under the applicable accounting guidance, the redemption value of limited partnership units are carried at fair value. The Parent Company believes that the aggregate settlement value of these interests (based on the number of units outstanding and the average closing price of the common shares during the last five business days of the quarter) was approximately $11.1 million and $11.7 million as of December 31, 2021 and December 31, 2020, respectively.

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13. BENEFICIARIES' EQUITY OF THE PARENT COMPANY

Earnings per Share (EPS)

The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net income attributable to noncontrolling interests	(77)		(77)		(1,799)		(1,799)		(262)		(262)
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common shareholders	$	11,868	$	11,868	$	305,117	$	305,117	$	33,871	$	33,871
Denominator
Weighted-average shares outstanding	170,878,185		170,878,185		171,926,079		171,926,079		176,132,941		176,132,941
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Weighted-average shares outstanding	170,878,185		172,273,240		171,926,079		172,317,076		176,132,941		176,686,813
Earnings per Common Share:
Net income attributable to common shareholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

The contingent securities/share based compensation impact is calculated using the treasury stock method and relates to employee awards settled in shares of the Parent Company. The effect of these securities is anti-dilutive for periods that the Parent Company incurs a net loss from continuing operations available to common shareholders and therefore is excluded from the dilutive earnings per share calculation in such periods.

Redeemable common limited partnership units totaling 823,983 at December 31, 2021, 981,634 at December 31, 2020 and 981,634 at December 31, 2019, respectively, were excluded from the diluted earnings per share computations because they are not dilutive.

Unvested restricted shares are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the years ended December 31, 2021, 2020 and 2019, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted shares issued to the Company’s executives and other employees under the Company's shareholder-approved long-term incentive plan.

Common and Preferred Shares

On December 7, 2021, the Parent Company declared a distribution of $0.19 per common share, totaling $32.8 million, which was paid on January 19, 2022 to shareholders of record as of January 5, 2022.

During the year ended December 31, 2021, the Company issued 226,695 common shares in a private placement to an unaffiliated third party in exchange for the third party's 1% residual ownership interest in One and Two Commerce Square, an unconsolidated joint venture.

Of the 20,000,000 preferred shares authorized, none were outstanding as of December 31, 2021 or December 31, 2020.

Common Share Repurchases

The Parent Company maintains a common share repurchase program under which the Board of Trustees has authorized the Parent Company to repurchase common shares. On January 3, 2019, the Board of Trustees authorized the repurchase of up to $150.0 million common shares from and after January 3, 2019. During the year ended December 31, 2021, the Company did

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not repurchase any common shares. During the year ended December 31, 2020, the Company repurchased and retired 6,248,483 common shares at an average price of $9.60 per share, totaling $60.0 million. During the year ended December 31, 2019, the Company repurchased and retired 1,337,169 common shares at an average price of $12.92 per share, totaling $17.3 million.

Former Continuous Offering Program

On January 10, 2017, the Parent Company entered into a continuous offering program (the “Offering Program”), that permitted the Parent Company to sell up to an aggregate of 16,000,000 common shares in at-the-market offerings.

There was no activity under the Offering Program during 2020 and 2019. At December 31, 2021, no common shares remained available for issuance under the Offering Program, which terminated on January 10, 2020.

14. PARTNERS' EQUITY OF THE PARENT COMPANY

Earnings per Common Partnership Unit

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net (income) loss attributable to noncontrolling interests	3		3		(20)		(20)		(69)		(69)
Nonforfeitable dividends allocated to unvested restricted unitholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common unitholders	$	11,948	$	11,948	$	306,896	$	306,896	$	34,064	$	34,064
Denominator
Weighted-average units outstanding	171,770,843		171,770,843		172,907,713		172,907,713		177,114,932		177,114,932
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Total weighted-average units outstanding	171,770,843		173,165,898		172,907,713		173,298,710		177,114,932		177,668,804
Earnings per Common Partnership Unit:
Net income attributable to common unitholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per unit. For the years ended December 31, 2021, 2020 and 2019, earnings representing nonforfeitable dividends were allocated to the unvested restricted units issued to the Parent Company’s executives and other employees under the Parent Company’s shareholder-approved long-term incentive plan.

Common Partnership Units and Preferred Mirror Units

The Operating Partnership issues partnership units to the Parent Company in exchange for the contribution of the net proceeds of any equity security issuance by the Parent Company. The number and terms of such partnership units correspond to the number and terms of the related equity securities issued by the Parent Company. In addition, the Operating Partnership may also issue separate classes of partnership units. Historically, the Operating Partnership has had the following types of partnership units outstanding: (i) Preferred Partnership Units which have been issued to parties other than the Parent Company; (ii) Preferred Mirror Partnership Units which have been issued to the Parent Company; and (iii) Common Partnership Units which include both interests held by the Parent Company and those held by other limited partners.

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Preferred Mirror Partnership Units

In exchange for the proceeds received in corresponding offerings by the Parent Company of preferred shares of beneficial interest, the Operating Partnership has issued to the Parent Company a corresponding amount of Preferred Mirror Partnership Units with terms consistent with that of the preferred securities issued by the Parent Company.

No preferred units were outstanding as of December 31, 2021 or December 31, 2020.

Common Partnership Units (Redeemable and General)

The Operating Partnership has two classes of Common Partnership Units outstanding as of December 31, 2021: (i) Class A Limited Partnership Interest which are held by both the Parent Company and outside third parties and (ii) General Partnership Interests which are held solely by the Parent Company (collectively, the Class A Limited Partnership Interest, and General Partnership Interests are referred to as “Common Partnership Units”). The holders of the Common Partnership Units are entitled to share in cash distributions from, and in profits and losses of, the Operating Partnership, in proportion to their respective percentage interests, subject to preferential distributions on the preferred mirror units and the preferred units.

The Common Partnership Units held by the Parent Company (comprised of both General Partnership Units and Class A Limited Partnership Units) are presented as partner’s equity in the consolidated financial statements. Class A Limited Partnership Interest held by parties other than the Parent Company are redeemable at the option of the holder for a like number of common shares of the Parent Company, or cash, or a combination thereof, at the election of the Parent Company. Because the form of settlement of these redemption rights are not within the control of the Operating Partnership, these Common Partnership Units have been excluded from partner’s equity and are presented as redeemable limited partnership units measured at the potential cash redemption value as of the end of the periods presented based on the closing market price of the Parent Company’s common shares at December 31, 2021, 2020 and 2019, which was $13.42, $11.91 and $15.75, respectively. Class A Units of 823,983 as of December 31, 2021, 981,634 as of December 31, 2020, and 981,634 as of December 31, 2019, respectively, were outstanding and owned by outside limited partners of the Operating Partnership.

On December 7, 2021, the Operating Partnership declared a distribution of $0.19 per common partnership unit, totaling $32.8 million, which was paid on January 19, 2022 to unitholders of record as of January 5, 2022. 

During the year ended December 31, 2021, the Operating Partnership issued 226,695 common partnership units to the Parent Company in exchange for a 1% residual ownership interest in One and Two Commerce Square, an unconsolidated joint venture, which was acquired from an unaffiliated third party in exchange for an equal number of common shares of the Parent Company.

Common Unit Repurchases

In connection with the Parent Company’s common share repurchase program, one common unit of the Operating Partnership is retired for each common share repurchased. During the year ended December 31, 2021, the Company did not repurchase any units. During the year ended December 31, 2020 the Company repurchased and retired 6,248,483 common units at an average price of $9.60 per unit, totaling $60.0 million. During the year ended December 31, 2019, the Company Repurchased 1,337,169 common units at an average price of $12.92 per unit, totaling $17.3 million.

The common units repurchased were retired and, as a result, were accounted for in accordance with Maryland law, which does not contemplate treasury stock. The repurchases were recorded as a reduction of common units (at $0.01 par value per unit) and a decrease to General Partnership Capital.

Former Continuous Offering Program

On January 10, 2017, the Parent Company entered into a continuous offering program (the “Offering Program”), which permitted it to sell up to an aggregate of 16,000,000 common units in at-the-market offerings. In connection with the commencement of the Offering Program, $0.2 million of upfront costs were recorded to General Partner Capital.

There was no activity under the Offering Program during 2020 and 2019. As of December 31, 2021, no common shares remained available for issuance under the Offering Program, which terminated on January 10, 2020.

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15. SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION

401(k) Plan

The Company sponsors a 401(k) defined contribution plan for its employees. Each employee may contribute up to 100% of annual compensation, subject to specific limitations under the Internal Revenue Code. At its discretion, the Company can make matching contributions equal to a percentage of the employee’s elective contribution and profit sharing contributions. The Company funds its 401(k) contributions annually and plan participants must be employed as of December 31 in order to receive employer contributions, except for employees eligible for qualifying retirement, as defined under the Internal Revenue Code. The Company contributions were $0.4 million, $0.5 million, and $0.4 million in 2021, 2020, and 2019, respectively.

Restricted Share Rights Awards

As of December 31, 2021, 474,978 restricted share rights ("Restricted Share Rights") were outstanding under the Company's long term equity incentive plan. These Restricted Share Rights vest over one to three years from the initial grant dates. The remaining compensation expense to be recognized with respect to these awards at December 31, 2021 was $1.8 million and is expected to be recognized over a weighted average remaining vesting period of 1.9 years. During the years ended December 31, 2021, 2020, and 2019, the amortization related to outstanding Restricted Share Rights was $4.1 million (of which $0.5 million was capitalized), $4.3 million (of which $0.4 million was capitalized), and $3.9 million (of which $0.3 million was capitalized), respectively. Compensation expense related to outstanding Restricted Share Rights is included in general and administrative expense.

The following table summarizes the Company’s Restricted Share Rights activity during the year-ended December 31, 2021:

	Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2021	488,735	$	15.19
Granted	343,179	$	12.72
Vested	(339,579)	$	15.12
Forfeited	(17,357)	$	13.55
Non-vested at December 31, 2021	474,978	$	13.51

On March 4, 2021, the Compensation Committee of the Parent Company’s Board of Trustees awarded to officers of the Company an aggregate of 252,278 Restricted Share Rights, which vest over three years from the grant date. Each Restricted Share Right entitles the holder to one common share upon settlement. The Parent Company pays dividend equivalents on the Restricted Share Rights prior to the settlement date. Vesting and/or settlement would accelerate if the recipient of the award were to die, become disabled or, in the case of certain of such Restricted Share Rights, retire in a qualifying retirement prior to the vesting or settlement date. Qualifying retirement generally means the recipient’s voluntary termination of employment after reaching at least age 57 and accumulating at least 15 years of service with the Company. In addition, vesting would also accelerate if the Parent Company were to undergo a change of control and, on or before the first anniversary of the change of control, the recipient’s employment were to cease due to a termination without cause or resignation with good reason.

The Restricted Share Rights granted in 2021, 2020, and 2019 to certain senior executives include an “outperformance feature” whereby additional shares may be earned, up to 200% of the shares subject to the basic award, based on the Company’s achievement of earnings-based targets and development, or investment, based targets during a three-year performance period with an additional two years to fully vest. In addition to the basic award, up to an aggregate of 388,840, 316,236, and 228,858 shares may be awarded under the outperformance feature for the 2021, 2020, and 2019 awards, respectively, to those senior officers whose Restricted Share Rights awards include the "outperformance feature." As of December 31, 2021, the Company has not recognized any compensation expense related to the outperformance feature for the 2019-2021 awards. The Company will continue to evaluate progression towards achievement of the performance metrics on a quarterly basis and recognize compensation expense for the outperformance feature of these awards should it be determined that achievement of these metrics is probable.

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In addition, on February 23, 2021, the Compensation Committee awarded non-officer employees an aggregate of 49,267 Restricted Share Rights that generally vest in three equal annual installments. Vesting of these awards is subject to acceleration upon death, disability or termination without cause within one year following a change of control.

On May 18, 2021, the Compensation Committee awarded the Trustees an aggregate of 41,634 fully vested common shares.

In accordance with the accounting standard for share-based compensation, the Company amortizes share-based compensation costs through the qualifying retirement dates for those executives and Trustees who meet the conditions for qualifying retirement during the scheduled vesting period and whose award agreements provide for vesting upon a qualifying retirement.

Restricted Performance Share Units Plan

The Compensation Committee of the Parent Company’s Board of Trustees has granted performance share-based awards (referred to as Restricted Performance Share Units, or RPSUs) to officers of the Parent Company. The RPSUs are settled in common shares, with the number of common shares issuable in settlement determined based on the Company’s total shareholder return over specified measurement periods compared to total shareholder returns of comparative groups over the measurement periods. The table below presents certain information as to unvested RPSU awards.

	RPSU Grant Date
	2/21/2019		3/5/2020		3/5/2021		Total
(Amounts below in shares, unless otherwise noted)
Non-vested at January 1, 2021	206,069		319,600		—		525,669
Granted	—		—		380,957		380,957
Units Cancelled	(3,837)		(5,545)		(6,796)		(16,178)
Non-vested at December 31, 2021	202,232		314,055		374,161		890,448
Measurement Period Commencement Date	1/1/2019		1/1/2020		1/1/2021
Measurement Period End Date	12/31/2021		12/31/2022		12/31/2023
Granted	213,728		319,600		380,957
Fair Value of Units on Grant Date (in thousands)	$	4,627	$	5,389	$	6,389

The Company values each RPSU on its grant date using a Monte Carlo simulation. The fair values of each award are being amortized over the three year performance period. During the performance period, dividend equivalents are credited as additional RPSUs, subject to the same terms and conditions as the original RPSUs. The performance period will be abbreviated and the determination and delivery of earned shares will be accelerated in the event of a change in control or if the recipient of the award were to die, become disabled or retire in a qualifying retirement prior to the end of the otherwise applicable three year performance period; provided that, in the case of qualifying retirement for the March, 2021 and 2020 grants, the number of shares deliverable will be pro-rated based on the portion of the performance period actually worked before retirement. In accordance with the accounting standard for share-based compensation, the Company amortizes stock-based compensation costs for the February 2019 grant through the qualifying retirement date for those executives who meet the conditions for qualifying retirement during the scheduled vesting period.

For the year ended December 31, 2021, the Company recognized amortization of the 2021, 2020 and 2019 RPSU awards of $4.3 million, of which $0.5 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the year ended December 31, 2020, amortization for the 2020, 2019 and 2018 RPSU awards was $3.0 million, of which $0.4 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the year ended December 31, 2019, amortization for the 2019, 2018, and 2017 RPSU awards was $4.2 million, of which $0.6 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation.

The remaining compensation expense to be recognized with respect to the non-vested RPSUs at December 31, 2021 was approximately $6.3 million and is expected to be recognized over a weighted average remaining vesting period of 1.5 years.

The Company issued 82,513 common shares on February 1, 2021 in settlement of RPSUs that had been awarded on February 28, 2018 (with a three-year measurement period ended December 31, 2020). Holders of these RPSUs also received a cash dividend of $0.19 per share for these common shares on January 20, 2021.

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Employee Share Purchase Plan

The Parent Company’s shareholders approved the 2007 Non-Qualified Employee Share Purchase Plan (the “ESPP”), which is intended to provide eligible employees with a convenient means to purchase common shares of the Parent Company through payroll deductions and voluntary cash purchases at an amount equal to 85% of the average closing price per share for a specified period. Under the plan document, the maximum participant contribution for the 2021 plan year is limited to the lesser of 20% of compensation or $50,000. The ESPP allows the Parent Company to make open market purchases, which reflects all purchases made under the plan to date. In addition, the number of shares separately reserved for issuance under the ESPP is 1.25 million. Employees made purchases under the ESPP of $0.6 million during the year ended December 31, 2021, $0.4 million during the year ended December 31, 2020 and $0.5 million during the year ended December 31, 2019. The Company recognized $0.1 million of compensation expense related to the ESPP during each of the years ended December 31, 2021, 2020, and 2019. Compensation expense represents the 15% discount on the purchase price. The Board of Trustees of the Parent Company may terminate the ESPP at its sole discretion at any time.

Deferred Compensation

In January 2005, the Parent Company adopted a Deferred Compensation Plan (the “Plan”) that allows trustees and certain key employees to defer compensation voluntarily. Compensation expense is recorded for the deferred compensation and a related liability is recognized. Participants may elect designated benchmark investment options for the notional investment of their deferred compensation. The deferred compensation obligation is adjusted for deemed income or loss related to the investments selected. At the time the participants defer compensation, the Company records a liability, which is included in the Company’s consolidated balance sheets. The liability is adjusted for changes in the market value of the participant-selected investments at the end of each accounting period, and the impact of adjusting the liability is recorded as an increase or decrease to compensation cost.

The Company has purchased mutual funds which can be utilized as a funding source for the Company’s obligations under the Plan. Participants in the Plan have no interest in any assets set aside by the Company to meet its obligations under the Plan. For each of the years ended December 31, 2021, December 31, 2020 and December 31, 2019, the Company recorded a nominal amount of deferred compensation costs, net of investments in the company-owned policies and mutual funds.

Participants in the Plan may elect to have all, or a portion of their deferred compensation invested in the Company’s common shares. The Company holds these shares in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. The Plan does not permit diversification of a participant’s deferral allocated to the Company common shares and deferrals allocated to Company common shares can only be settled with a fixed number of shares. In accordance with the accounting standard for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested, the deferred compensation obligation associated with the Company’s common shares is classified as a component of shareholder’s equity and the related shares are treated as shares to be issued and are included in total shares outstanding. At both December 31, 2021 and 2020, 1.2 million of such shares were included in total shares outstanding, respectively. Subsequent changes in the fair value of the common shares are not reflected in operations or shareholders’ equity of the Company.

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16. DISTRIBUTIONS

The following table provides the tax characteristics of the 2021, 2020 and 2019 distributions paid:

	Years ended December 31,
	2021			2020			2019
	(in thousands, except per share amounts)
Common Share Distributions:
Ordinary income	$	0.64		$	0.41		$	0.62
Capital gain	0.01			0.35			—
Non-taxable distributions	0.11			—			0.14
Distributions per share	$	0.76		$	0.76		$	0.76
Percentage classified as ordinary income	83.90		%	53.90		%	81.00		%
Percentage classified as capital gain	1.20		%	46.10		%	—		%
Percentage classified as non-taxable distribution	14.90		%	—		%	19.00		%

17. INCOME TAXES AND TAX CREDIT TRANSACTIONS

Income Tax Provision/Benefit

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

As of December 31, 2021 and 2020 there were no deferred tax assets included within “Other assets” in the consolidated balance sheets.

The Company had no accruals for tax uncertainties as of December 31, 2021 and December 31, 2020.

For the year ended December 31, 2021, there was no deferred income tax expense and nominal current income tax expense. For the year ended December 31, 2020, there was no deferred income tax expense and $0.2 million of current income tax benefit. For the year ended December 31, 2019, there was $0.1 million of deferred income tax expense and $0.1 million of current income tax benefit. These amounts are included in “Income tax (provision) benefit” in the consolidated statements of operations.

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18. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table details the components of accumulated other comprehensive income (loss) of the Parent Company and the Operating Partnership as of and for the three years ended December 31, 2021 (in thousands):

Parent Company	Cash Flow Hedges
Balance at January 1, 2019	$	5,029
Change in fair market value during year	(8,210)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	41
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	770
Balance at December 31, 2019	$	(2,370)
Change in fair market value during year	(5,972)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	29
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2020	$	(7,561)
Change in fair market value during year	4,817
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	(28)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2021	$	(2,020)

Operating Partnership	Cash Flow Hedges
Balance at January 1, 2019	$	4,725
Change in fair market value during year	(8,210)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	770
Balance at December 31, 2019	$	(2,715)
Change in fair market value during year	(5,972)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2020	$	(7,935)
Change in fair market value during year	4,817
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2021	$	(2,366)

Over time, the unrealized gains and losses held in Accumulated Other Comprehensive Income (“AOCI”) will be reclassified to interest expense when the related hedged items are recognized in earnings. The current balance held in AOCI is expected to be reclassified to interest expense for realized losses on forecasted debt transactions over the related term of the debt obligation, as applicable. The Company expects to reclassify $0.6 million from AOCI into interest expense within the next twelve months.

19. SEGMENT INFORMATION

As of December 31, 2021, the Company owns and manages properties within five segments: (1) Philadelphia Central Business District ("Philadelphia CBD"), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Other segment includes properties located in Camden County, New Jersey and New Castle County, Delaware. In addition to the five segments, the corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress is transferred to operating properties by region upon completion of the associated construction or project.

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The following tables provide selected asset information and results of operations of the Company’s reportable segments (in thousands):

Real estate investments, at cost:
	December 31, 2021		December 31, 2020
Philadelphia CBD	$	1,460,510	$	1,433,927
Pennsylvania Suburbs	866,223		871,530
Austin, Texas	778,145		728,741
Metropolitan Washington, D.C.	280,921		352,794
Other	86,803		87,117
Operating Properties	$	3,472,602	$	3,474,109
Corporate
Right of use asset - operating leases, net	$	20,313	$	20,977
Construction-in-progress	$	277,237	$	210,311
Land held for development	$	114,604	$	117,984
Prepaid leasehold interests in land held for development, net	$	27,762	$	39,185

.

Net operating income:

	Year Ended December 31,
	2021						2020						2019
	Total revenue		Operating expenses (a)		Net operating income		Total revenue		Operating expenses (a)		Net operating income (loss)		Total revenue		Operating expenses (a)		Net operating income (loss)
Philadelphia CBD	$	207,858	$	(73,695)	$	134,163	$	232,028	$	(82,505)	$	149,523	$	263,769	$	(100,219)	$	163,550
Pennsylvania Suburbs	124,566		(40,011)		84,555		141,613		(46,281)		95,332		141,084		(47,418)		93,666
Austin, Texas	101,680		(39,374)		62,306		102,982		(39,759)		63,223		104,157		(38,285)		65,872
Metropolitan Washington, D.C.	19,865		(15,386)		4,479		40,223		(20,791)		19,432		51,498		(23,455)		28,043
Other	14,015		(9,840)		4,175		13,469		(9,815)		3,654		14,558		(9,328)		5,230
Corporate	18,835		(10,005)		8,830		4,537		(6,305)		(1,768)		5,351		(7,141)		(1,790)
Operating properties	$	486,819	$	(188,311)	$	298,508	$	534,852	$	(205,456)	$	329,396	$	580,417	$	(225,846)	$	354,571

(a)Includes property operating expense, real estate taxes and third party management expense.

Unconsolidated real estate ventures:
	Investment in real estate ventures, at equity				Equity in income (loss) of real estate venture
	As of				Year ended December 31,
	December 31, 2021		December 31, 2020		2021		2020		2019
Philadelphia CBD	$	317,959	$	268,562	$	(15,191)	$	(9,090)	$	328
Metropolitan Washington, D.C.	85,867		99,769		(3,755)		(3,019)		(4,234)
Mid-Atlantic Office JV	31,680		32,996		932		96		—
MAP Venture	(24,396)		(11,516)		(8,683)		(6,571)		(6,102)
Other	—		—		—		—		86
Total	$	411,110	$	389,811	$	(26,697)	$	(18,584)	$	(9,922)

Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total revenue less property operating expenses, real estate taxes, and third party management expenses. Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance and management fees. General and administrative expenses that are not reflected in NOI primarily consist of corporate-level salaries, amortization of share awards and professional fees that are incurred as part of corporate office management. NOI presented by the Company may not be comparable to NOI reported by other companies that define NOI differently. NOI is the primary measure that is used by the Company's management to evaluate the operating performance of the Company's real estate assets by segment. The Company believes NOI provides useful information to investors regarding the financial condition and results of operations because it reflects only those

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income and expense items that are incurred at the property level. While NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. NOI does not reflect interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. The Company believes that net income (loss), as defined by GAAP, is the most appropriate earnings measure. The following is a reconciliation of consolidated net income (loss), as defined by GAAP, to consolidated NOI, (in thousands):

	Year Ended December 31,
	2021		2020		2019
Net income	$	12,366	$	307,326	$	34,529
Plus:
Interest expense	62,617		73,911		81,512
Interest expense - amortization of deferred financing costs	2,836		2,904		2,768
Depreciation and amortization	178,105		188,283		210,005
General and administrative expenses	30,153		30,288		32,156
Equity in loss of unconsolidated real estate ventures	26,697		18,584		9,922
Less:
Interest and investment income	8,295		1,939		2,318
Income tax (provision) benefit	(47)		224		(12)
Net gain on disposition of real estate	142		289,461		356
Net gain on sale of undepreciated real estate	2,903		201		2,020
Net gain on real estate venture transactions	2,973		75		11,639
Consolidated net operating income	$	298,508	$	329,396	$	354,571

20. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company is involved from time to time in litigation on various matters, including disputes with tenants, disputes with vendors, employee disputes and disputes arising out of agreements to purchase or sell properties or joint ventures or disputes relating to state and local taxes. Given the nature of the Company’s business activities, these lawsuits are considered routine to the conduct of its business. The result of any particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system. The Company will establish reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and when the amount of loss is reasonably estimable. The Company does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company.

Environmental

As an owner of real estate, the Company is subject to various environmental laws of federal, state, and local governments. The Company’s compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Company does not believe it will have a material adverse effect in the future. However, the Company cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current Properties or on properties that the Company may acquire.

Fair Value of Contingent Consideration

On April 2, 2015, the Company purchased 618 Market Street in Philadelphia, Pennsylvania. The allocated purchase price included contingent consideration of $2.0 million payable to the seller upon commencement of development. The liability was recorded at a fair value of $1.6 million and has fully accreted through interest expense to $2.0 million as of December 31, 2021. The fair value of this contingent consideration was determined using a probability weighted discounted cash flow model based on the period until development was originally expected to commence. The significant inputs to the discounted

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cash flow model were the discount rate and weighted probability scenarios. As the inputs were unobservable, the Company determined the inputs used to value this liability fall within Level 3 for fair value reporting.

Debt Guarantees

As of December 31, 2021, the Company's unconsolidated real estate ventures had aggregate indebtedness of $961.5 million. These loans are generally mortgage or construction loans, most of which are nonrecourse to the Company, except for customary recourse carve-outs. In addition, during construction undertaken by the unconsolidated real estate ventures, including the 3025 JFK Venture, the Company has provided, and expects to continue to provide, cost overrun and completion guarantees, as well as customary environmental indemnities and guarantees of customary exceptions to nonrecourse provisions in loan agreements. In the agreement with its partner in the 3025 JFK Venture, the Company agreed to provide cost overrun and completion guaranties for the project under development. With respect to the construction loan obtained by 3025 JFK Venture on July 23, 2021, the Company has also provided a carry guarantee and limited payment guarantee up to 25% of the principal balance of the $186.7 million construction loan.

Impact of Natural Disasters and Casualty

The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses is considered a gain contingency and is not recorded until the proceeds are received.

In February 2021, one of the Company's properties in Austin, Texas sustained damage from the winter storms and resulting power grid failures. As a result of the damage, during the year ended December 31, 2021, the Company recorded a fixed asset write-off totaling $1.2 million. During the year ended December 31, 2021, the Company has recorded an estimated $7.2 million of restoration costs, of which $1.9 million is included in Accounts payable and accrued expenses on the consolidated balance sheets as of December 31, 2021. The Company has also sustained business interruption loss of $3.9 million related to unpaid rent, which is also fully covered under the insurance policy. During the year ended December 31, 2021, the Company has received $15.3 million of insurance proceeds, resulting in full recovery of the costs incurred to date. The $3.0 million of insurance proceeds received in excess of the fixed asset write-off, total business interruption, and total estimated restoration cost during the year ended December 31, 2021 is included in Other income on the consolidated statement of operations.

Other Commitments or Contingencies

Under the terms of each of the One Uptown joint venture agreements, the joint venture partner is not required to fund project costs until the closing of the applicable construction loans. In the event that the Company does not close on the applicable construction loan for each of the joint ventures by June 30, 2022, the joint venture partner could elect to assign its interest in the project to the Company and have no obligation to fund the project costs. In addition, the Company has provided cost overrun and completion guarantees, as well as customary environmental indemnities, for each of the One Uptown joint ventures. See Note 3, ''Real Estate Investments” for further information regarding the One Uptown joint ventures.

In connection with the Schuylkill Yards Project, the Company entered into a neighborhood engagement program and, as of December 31, 2021, had $7.0 million of future fixed contractual obligations. The Company also committed to fund additional contributions under the program. As of December 31, 2021, the Company estimates that these additional contributions, which are not fixed under the terms of agreement, will be $2.4 million.

In connection with the formation of the Commerce Square Venture, the Company has committed to investing an additional $20.0 million of preferred equity in the properties on a pari passu basis with its joint venture partner of which $2.1 million has been contributed by the Company as of December 31, 2021.

As part of the Company’s September 2004 acquisition of a portfolio of properties from The Rubenstein Company (which the Company refers to as the “TRC acquisition”), the Company acquired its interest in Two Logan Square, a 708,844 square foot office building in Philadelphia, Pennsylvania primarily through its ownership of a second and third mortgage secured by this property. This property is consolidated, as the borrower is a variable interest entity and the Company, through its ownership of the second and third mortgages, is the primary beneficiary. On October 21, 2020, the Company also acquired the

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$79.8 million first mortgage on the property from the third-party mortgage lender pursuant to an agreement with certain of the former owners. Under the agreement, the Company has agreed to not take title to Two Logan until the earlier of June 2026 or the occurrence of certain events related to the ownership interests of certain former owners. If the Company were to sell the restricted property before the expiration of the restricted period in a non-exempt transaction, the Company may be required to make significant payments to certain of the former owners of Two Logan Square on account of tax liabilities attributed to them. Additionally, the Company will be required to pay these certain former owners an amount estimated at approximately $0.6 million to redeem their residual interest in the fee owner of this property. The $0.6 million payment is included within "Other liabilities" on the consolidated balance sheets.

The Company invests in its properties and regularly incurs capital expenditures in the ordinary course of business to maintain the properties. The Company believes that such expenditures enhance its competitiveness. The Company also enters into construction, utility and service contracts in the ordinary course of business which may extend beyond one year. These contracts typically provide for cancellation with insignificant or no cancellation penalties.

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Brandywine Realty Trust and Brandywine Operating Partnership, L.P.

Schedule II

Valuation and Qualifying Accounts

(in thousands)

Description	Balance at Beginning of Year		Additions		Deductions (1)		Balance at End of Year
Allowance for doubtful accounts:
December 31, 2021	$	5,086	$	—	$	953	$	4,133
December 31, 2020	$	7,975	$	—	$	2,889	$	5,086
December 31, 2019	$	12,919	$	—	$	4,944	$	7,975

(1)Deductions represent amounts that the Company had fully reserved for in prior years and were subsequently deemed uncollectible. Deductions also represent reversals of the accrued rent receivable allowance as a result of the Company's ongoing assessment of its general accrued rent receivable reserve.

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BRANDYWINE REALTY TRUST AND BRANDYWINE OPERATING PARTNERSHIP, L.P.

Schedule III

Real Estate and Accumulated Depreciation — December 31, 2021

(in thousands)

			Initial Cost						Gross Amount Which Carried December 31, 2021
Property Name	City	State	Land		Building & Improvements		Net Improvements (Retirements) Since Acquisition		Land		Building & Improvements		Total (a)		Accumulated Depreciation at December 31, 2021 (b)		Year of Construction	Year Acquired	Depreciable Life
PENNSYLVANIA SUBURBS
Six Tower Bridge (181 Washington Street)	Conshohocken	PA	$	6,927	$	14,722	$	1,747	$	6,237	$	17,159	$	23,396	$	4,436	1999	2013	(c)
426 West Lancaster Avenue	Devon	PA	1,689		6,756		9,400		1,686		16,159		17,845		1,614		1990	1998	(c)
640 Freedom Business Center (d)	King Of Prussia	PA	1,015		20,098		4,252		360		25,005		25,365		15,445		1991	1998	(c)
620 Freedom Business Center (d)	King Of Prussia	PA	666		13,118		1,498		234		15,048		15,282		9,596		1986	1998	(c)
1000 First Avenue	King Of Prussia	PA	—		13,708		2,806		—		16,514		16,514		11,778		1980	1998	(c)
1060 First Avenue	King Of Prussia	PA	—		13,665		4,014		—		17,679		17,679		12,249		1987	1998	(c)
630 Freedom Business Center Drive (d)	King Of Prussia	PA	666		13,251		2,937		237		16,617		16,854		10,322		1989	1998	(c)
1020 First Avenue	King Of Prussia	PA	—		10,744		4,306		—		15,050		15,050		10,380		1984	1998	(c)
1040 First Avenue	King Of Prussia	PA	—		14,142		4,915		—		19,057		19,057		13,367		1985	1998	(c)
610 Freedom Business Center Drive (d)	King Of Prussia	PA	485		9,602		2,415		172		12,330		12,502		8,007		1985	1998	(c)
650 Park Avenue	King Of Prussia	PA	1,916		4,378		(4,378)		1,916		—		1,916		—		1968	1998	(c)
600 Park Avenue	King Of Prussia	PA	1,012		4,048		385		1,012		4,433		5,445		2,888		1964	1998	(c)
933 First Avenue	King Of Prussia	PA	3,127		20,794		(1,125)		3,127		19,669		22,796		3,954		2017	N/A	(c)
500 North Gulph Road	King Of Prussia	PA	1,303		5,201		21,471		1,303		26,672		27,975		3,526		1979	1996	(c)
401 Plymouth Road	Plymouth Meeting	PA	6,199		16,131		15,622		6,199		31,753		37,952		16,559		2001	2000	(c)
Metroplex (4000 Chemical Road)	Plymouth Meeting	PA	4,373		24,546		5,498		4,373		30,044		34,417		8,667		2007	2001	(c)
610 West Germantown Pike	Plymouth Meeting	PA	3,651		14,514		4,493		3,651		19,007		22,658		9,635		1987	2002	(c)
600 West Germantown Pike	Plymouth Meeting	PA	3,652		15,288		2,692		3,652		17,980		21,632		8,989		1986	2002	(c)
630 West Germantown Pike	Plymouth Meeting	PA	3,558		14,743		2,221		3,558		16,964		20,522		8,623		1988	2002	(c)
620 West Germantown Pike	Plymouth Meeting	PA	3,572		14,435		2,541		3,572		16,976		20,548		7,992		1990	2002	(c)
660 West Germantown Pike	Plymouth Meeting	PA	3,694		5,487		19,473		5,405		23,249		28,654		7,549		1987	2012	(c)
351 Plymouth Road	Plymouth Meeting	PA	1,043		555		—		1,043		555		1,598		232		N/A	2000	(c)
150 Radnor Chester Road	Radnor	PA	11,925		36,986		21,940		11,897		58,954		70,851		23,715		1983	2004	(c)
One Radnor Corporate Center	Radnor	PA	7,323		28,613		18,811		7,323		47,424		54,747		33,343		1998	2004	(c)
201 King of Prussia Road	Radnor	PA	8,956		29,811		4,816		8,949		34,634		43,583		22,224		2001	2004	(c)
555 Lancaster Avenue	Radnor	PA	8,014		16,508		10,137		8,609		26,050		34,659		11,546		1973	2004	(c)
Four Radnor Corporate Center	Radnor	PA	5,406		21,390		11,094		5,705		32,185		37,890		17,219		1995	2004	(c)
Five Radnor Corporate Center	Radnor	PA	6,506		25,525		8,682		6,578		34,135		40,713		15,124		1998	2004	(c)
Three Radnor Corporate Center	Radnor	PA	4,773		17,961		2,016		4,791		19,959		24,750		11,401		1998	2004	(c)
Two Radnor Corporate Center	Radnor	PA	3,937		15,484		2,685		3,942		18,164		22,106		11,120		1998	2004	(c)
130 Radnor Chester Road	Radnor	PA	2,573		8,338		(134)		2,567		8,210		10,777		3,997		1983	2004	(c)
170 Radnor Chester Road	Radnor	PA	2,514		8,147		1,667		2,509		9,819		12,328		5,138		1983	2004	(c)
200 Radnor Chester Road	Radnor	PA	3,366		—		3,621		3,366		3,621		6,987		995		2014	2005	(c)
101 West Elm Street	W. Conshohocken	PA	6,251		25,209		3,057		6,251		28,266		34,517		11,729		1999	2005	(c)
1 West Elm Street	W. Conshohocken	PA	3,557		14,249		7,712		3,557		21,961		25,518		6,723		1999	2005	(c)
Four Tower Bridge (200 Barr Harbor Drive)	W. Conshohocken	PA	6,000		14,734		402		6,000		15,136		21,136		1,650		1998	2018	(c)

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			Initial Cost			Gross Amount Which Carried December 31, 2021
Property Name	City	State	Land	Building & Improvements	Net Improvements (Retirements) Since Acquisition	Land	Building & Improvements	Total (a)	Accumulated Depreciation at December 31, 2021 (b)	Year of Construction	Year Acquired	Depreciable Life
PHILADELPHIA CBD
Cira Centre (2929 Arch Street)	Philadelphia	PA	—	208,570	(22,427)	12,586	173,557	186,143	67,765	2005	N/A	(c)
Three Logan Square (1717 Arch Street)	Philadelphia	PA	—	98,188	84,992	25,195	157,985	183,180	54,136	1990	2010	(c)
One Logan Square (130 North 18th Street)	Philadelphia	PA	14,496	107,736	21,633	14,473	129,392	143,865	65,373	1998	2004	(c)
Two Logan Square (100 North 18th Street)	Philadelphia	PA	16,066	100,255	26,795	16,066	127,050	143,116	56,054	1988	2004	(c)
Cira Centre South Garage (129 South 30th Street) (d)	Philadelphia	PA	—	76,008	26,885	6,727	96,166	102,893	25,080	2010	N/A	(c)
1900 Market Street	Philadelphia	PA	7,768	17,263	61,783	7,768	79,046	86,814	25,142	1981	2012	(c)
3020 Market Street	Philadelphia	PA	—	21,417	7,751	—	29,168	29,168	12,800	1959	2011	(c)
618-634 Market Street	Philadelphia	PA	13,365	5,791	5,186	13,365	10,977	24,342	6,821	1966	2015	(c)
FMC Tower at Cira Centre South (2929 Walnut Street)	Philadelphia	PA	—	400,294	9,493	—	409,787	409,787	70,803	2016	N/A	(c)
2100 Market Street	Philadelphia	PA	18,827	—	6,300	18,854	6,273	25,127	1,858	N/A	2015	(c)
1505-11 Race Street	Philadelphia	PA	3,662	6,061	8	3,670	6,061	9,731	177	1922	2020	(c)
3000 Market Street (e)	Philadelphia	PA	18,924	13,080	16,264	18,924	29,344	48,268	504	1937	2017	(c)
The Bulletin Building (3025 Market Street) (e)	Philadelphia	PA	—	24,377	43,599	—	67,976	67,976	7,928	1953	2017	(c)
3001-3003 JFK Boulevard (f)	Philadelphia	PA	—	—	111	—	111	111	24	N/A	2018	N/A
METROPOLITAN WASHINGTON, D.C.
6600 Rockledge Drive	Bethesda	MD	—	37,421	9,956	—	47,377	47,377	17,816	1981	2006	(c)
1676 International Drive	McLean	VA	18,437	97,538	25,740	18,785	122,930	141,715	31,083	1999	2006	(c)
8260 Greensboro Drive	McLean	VA	7,952	33,964	8,114	8,102	41,928	50,030	13,598	1980	2006	(c)
8521 Leesburg Pike	Vienna	VA	4,316	30,885	6,575	4,397	37,379	41,776	14,332	1984	2006	(c)
AUSTIN, TX
401-405 Colorado Street (g)	Austin	TX	—	47,132	—	—	47,132	47,132	491	2021	N/A	(c)
11501 Burnet Road - Building 1	Austin	TX	3,755	22,702	4	3,755	22,706	26,461	6,062	1991	2015	(c)
11501 Burnet Road - Building 2	Austin	TX	2,732	16,305	1,473	2,732	17,778	20,510	5,252	1991	2015	(c)
11501 Burnet Road - Building 3	Austin	TX	3,688	22,348	(1,510)	3,688	20,838	24,526	5,560	1991	2015	(c)
11501 Burnet Road - Building 4	Austin	TX	2,614	15,740	3	2,614	15,743	18,357	4,203	1991	2015	(c)
11501 Burnet Road - Building 5	Austin	TX	3,689	22,354	4	3,689	22,358	26,047	5,970	1991	2015	(c)
11501 Burnet Road - Building 6	Austin	TX	2,676	15,972	13,964	2,676	29,936	32,612	8,808	1991	2015	(c)
11501 Burnet Road - Building 8	Austin	TX	1,400	7,422	1,521	1,400	8,943	10,343	2,452	1991	2015	(c)
11501 Burnet Road - Parking Garage	Austin	TX	—	19,826	3	—	19,829	19,829	6,289	1991	2015	(c)
Four Points Centre 3 (11120 Four Points Drive)	Austin	TX	1,140	—	40,322	1,141	40,321	41,462	5,062	2019	2013	(c)
One Barton Skyway (1501 South MoPac Expressway)	Austin	TX	10,496	47,670	5,421	10,495	53,092	63,587	4,697	1999	2018	(c)
Two Barton Skyway (1601 South MoPac Expressway)	Austin	TX	10,849	53,868	3,454	10,848	57,323	68,171	5,390	2000	2018	(c)
Three Barton Skyway (1221 South MoPac Expressway)	Austin	TX	10,374	47,624	286	10,373	47,911	58,284	3,865	2001	2018	(c)
Four Barton Skyway (1301 South MoPac Expressway)	Austin	TX	13,301	57,041	4,060	13,300	61,102	74,402	5,044	2001	2018	(c)

F-59

			Initial Cost						Gross Amount Which Carried December 31, 2021
Property Name	City	State	Land		Building & Improvements		Net Improvements (Retirements) Since Acquisition		Land		Building & Improvements		Total (a)		Accumulated Depreciation at December 31, 2021 (b)		Year of Construction	Year Acquired	Depreciable Life
Four Points Centre (11305 Four Points Drive)	Austin	TX	7,800		43,581		3,981		7,800		47,562		55,362		4,640		2008	2018	(c)
River Place - Building 1 (6500 River Place Boulevard)	Austin	TX	2,004		17,680		547		2,004		18,227		20,231		1,624		2000	2018	(c)
River Place - Building 2 (6500 River Place Boulevard)	Austin	TX	3,137		29,254		675		3,137		29,929		33,066		2,490		2000	2018	(c)
River Place - Building 3 (6500 River Place Boulevard)	Austin	TX	3,064		26,705		294		3,064		26,999		30,063		2,164		2000	2018	(c)
River Place - Building 4 (6500 River Place Boulevard	Austin	TX	2,273		18,617		1,141		2,273		19,758		22,031		2,030		2000	2018	(c)
River Place - Building 5 (6500 River Place Boulevard)	Austin	TX	1,752		14,315		106		1,752		14,421		16,173		1,161		2001	2018	(c)
River Place - Building 6 (6500 River Place Boulevard)	Austin	TX	1,598		12,945		30		1,598		12,975		14,573		1,027		2001	2018	(c)
River Place - Building 7 (6500 River Place Boulevard)	Austin	TX	1,801		16,486		1,103		1,801		17,589		19,390		1,837		2002	2018	(c)
Quarry Lake II (4516 Seton Center Parkway)	Austin	TX	3,970		30,546		1,024		3,867		31,673		35,540		2,681		1998	2018	(c)
OTHER
10 Foster Avenue	Gibbsboro	NJ	244		971		110		244		1,081		1,325		666		1983	1997	(c)
7 Foster Avenue	Gibbsboro	NJ	231		921		31		231		952		1,183		601		1983	1997	(c)
2 Foster Avenue	Gibbsboro	NJ	185		730		11		185		741		926		741		1974	1997	(c)
4 Foster Avenue	Gibbsboro	NJ	183		726		6		183		732		915		732		1974	1997	(c)
1 Foster Avenue	Gibbsboro	NJ	93		364		8		93		372		465		372		1972	1997	(c)
5 U.S. Avenue	Gibbsboro	NJ	21		81		2		21		83		104		83		1987	1997	(c)
5 Foster Avenue	Gibbsboro	NJ	9		32		3		9		35		44		35		1968	1997	(c)
Main Street - Plaza 1000	Voorhees	NJ	2,732		10,942		284		2,732		11,226		13,958		11,036		1988	1997	(c)
Main Street - Piazza	Voorhees	NJ	696		2,802		3,631		704		6,425		7,129		4,214		1990	1997	(c)
Main Street - Promenade	Voorhees	NJ	532		2,052		285		532		2,337		2,869		1,476		1988	1997	(c)
920 North King Street	Wilmington	DE	6,141		21,140		8,037		6,141		29,177		35,318		15,938		1989	2004	(c)
300 Delaware Avenue	Wilmington	DE	6,369		13,739		2,468		6,369		16,207		22,576		9,731		1989	2004	(c)
	Total:		$	365,011	$	2,472,362	$	635,229	$	410,144	$	3,062,458	$	3,472,602	$	957,450

F-60

(a)Reconciliation of Real Estate:

The following table reconciles the real estate investments from January 1, 2019 to December 31, 2021 (in thousands):

	2021		2020		2019
Balance at beginning of year	$	3,474,109	$	4,006,459	$	3,951,719
Additions:
Acquisitions	—		9,722		—
Capital expenditures and assets placed into service	134,931		113,221		145,378
Less:
Dispositions/impairments/placed into redevelopment	(82,247)		(619,086)		(50,792)
Retirements	(54,191)		(36,207)		(39,846)
Balance at end of year	$	3,472,602	$	3,474,109	$	4,006,459
Per consolidated balance sheet	$	3,472,602	$	3,474,109	$	4,006,459

The aggregate cost for federal income tax purposes is $3.1 billion as of December 31, 2021.

(b)Reconciliation of Accumulated Depreciation:

The following table reconciles the accumulated depreciation on real estate investments from January 1, 2019 to December 31, 2021 (in thousands):

	2021		2020		2019
Balance at beginning of year	$	896,561	$	973,318	$	885,407
Additions:
Depreciation expense	136,171		138,822		144,131
Less:
Dispositions/impairments/placed into redevelopment	(24,440)		(182,526)		(16,783)
Retirements	(50,842)		(33,053)		(39,437)
Balance at end of year	$	957,450	$	896,561	$	973,318
Per consolidated balance sheet	$	957,450	$	896,561	$	973,318

(c)Depreciation of the buildings and improvements are calculated over lives ranging from the life of the lease to 55 years.

(d)Land value represents unamortized prepaid ground lease.

(e)Reflects original construction date. Significant improvements were made to 3000 Market Street in 1988 and to The Bulletin Building in 2012.

(f)Represent leasehold interests in land parcels acquired through prepaid 99-year ground leases. Development has not yet commenced on the parcel. Building and improvements represent costs related to parking operations.

(g)401-405 Colorado Street partially placed into service in 2021.

F-61

EX-3.2.19

Exhibit 3.2.19

ADMITTED PARTNERS OF

BRANDYWINE OPERATING PARTNERSHIP, L.P.

AS OF DECEMBER 31, 2021

Brandywine Holdings I, Inc.

Brandywine Realty Trust

R. Randle Scarborough

Steven L. Shapiro

Gloria Kantor

Hirschman Family Trust

Helen Geffner

Trust UTW of Theodore Geffner

D. Kent Dahlke

Kenneth L. Hatfield

Michael G. Tombari

James J. Gorman

Christopher J. Knauer

The Jon Q. Reynolds and Ann S. Reynolds Family Trust

The Revocable Trust Declaration of Thomas K. Terrill and Susan Jean Terrill

The Redford Family Survivor’s Trust

The Peter M. Reynolds and Christina A. Reynolds Family Trust

C. Thomas Martz

Karen Leigh Brown

Tara Lynne Brown

Kristen Ann Stinnett-Brown

The Reynolds Family Partners

GENERAL PARTNER

Brandywine Realty Trust

EX-10.28

Exhibit 10.28

[AMENDED AND RESTATED]
CHANGE IN CONTROL AGREEMENT

THIS AGREEMENT is entered into on _______, 20__ by and between __________ (“Executive”) and Brandywine Realty Trust (the “Company”).

WHEREAS, Executive is currently employed by the Company and/or a Subsidiary (as defined below) of the Company;

WHEREAS, in order to encourage Executive to remain an employee of the Company and/or a Subsidiary, the Company is entering into this Agreement with Executive.

NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:

1.Payment Obligation: Change of Control. The Company agrees that if (i) a Change of Control of the Company occurs at a time when Executive is then an employee of the Company and/or a Subsidiary of the Company and (ii) within 730 days following the occurrence of the Change of Control (a) the Company or the purchaser or successor thereto (the “Purchaser”) terminates the employment of Executive other than for Cause or (b) Executive resigns for Good Reason:

a.then the Company or Purchaser will be obligated to pay to Executive an amount equal to the product of: (x) _____1 multiplied by (y) the sum of (1) Executive’s annual base salary as in effect at the time the Change of Control occurs plus (2) the greater of (i) the annual bonus most recently paid to Executive prior to the date of the occurrence of the Change of Control and (ii) Executive’s Target Bonus for the calendar year in which the Change of Control occurs, provided that if a Target Bonus has not been established for the calendar year in which the Change of Control occurs at the time of such occurrence, then the amount to be used for purposes of this clause (2) shall be the annual bonus most recently paid to Executive prior to the date of the occurrence of the Change of Control. Payment of the amounts provided for in this Section 1.a shall be made in a lump sum on the first regularly scheduled payroll date that occurs at least 35 days following such termination or resignation.

b.Executive shall be entitled to continuation of medical coverage until the earlier of (1) the last day of the ___2 month period following the date of termination or resignation or (2) the date on which the Executive is eligible for medical coverage under a plan maintained by a new employer or under a plan maintained by his spouse’s employer. Coverage shall be generally comparable to that provided by the Company from time to time to similarly situated active employees (i.e., as if the Executive had continued in employment during such period). The COBRA health care continuation coverage period under section 4980B of the Code shall run concurrently with the foregoing benefit period. In addition, Executive shall be entitled to continuation of all group term life insurance benefits (but not including any supplemental life insurance benefits provided to executives), or equivalent coverage if provision of such continuation of coverage is not possible under the group term life insurance policy, at no cost to Executive, for the ___3 month period following the date of Executive’s termination or resignation.

c.All compensation and benefits will cease at the time Executive’s employment terminates and, except as otherwise provided in this Section 1, the Company will

1 2.0 for Johnstone and Redd; 1.75 for Neuman

2 18 for Johnstone, Neuman and Redd

3 24 for Johnstone and Redd; 21 for Neuman

have no further liability or obligation by reason of such termination. The payments and benefits described in this Section 1 are in lieu of, and not in addition to, payments and benefits under any other severance arrangement maintained by the Company.

d.The payments and benefits described in this Section 1 are conditioned on Executive’s execution and delivery to the Company of a general release of claims against the Company and its affiliates in such form as the Company may reasonably prescribe (the “Release”) and on such Release becoming irrevocable within 30 days following his cessation of employment.

2.No Right to Employment. This Agreement shall not confer upon Executive any right to remain an employee of the Company or a Subsidiary of the Company, and shall only entitle Executive to the payments and benefits in the limited circumstances set forth in Section 1(a) and (b), above.

3.Compliance with Section 409A.

a.The parties intend for this Agreement to comply with or be exempt from Section 409A of the Code, and all provisions of this Agreement will be interpreted and applied accordingly. Nonetheless, the Company does not guaranty the tax treatment of any compensation payable to Executive.

b.If the termination giving rise to the payments described in Section 1 is not a “Separation from Service” within the meaning of Treas. Reg. § 1.409A-1(h)(1) (or any successor provision), then the amounts otherwise payable pursuant to that section will instead be deferred without interest and will not be paid until Executive experiences a Separation from Service. In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision) is necessary to avoid the application of an additional tax under Section 409A of the Code to payments due to Executive upon or following his Separation from Service, then notwithstanding any other provision of this Agreement (or any otherwise applicable plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s Separation from Service (taking into account the preceding sentence of this paragraph) will be deferred without interest and paid to Executive in a lump sum immediately following that six month period. This paragraph should not be construed to prevent the application of Treas. Reg. § 1.409A-1(b)(9)(iii)(or any successor provision) to amounts payable hereunder. Notwithstanding anything to the contrary contained in this Agreement or otherwise, to the extent an in-kind benefit due to the Executive constitutes a “deferral of compensation” within the meaning of Section 409A of the Code, the provision of such in-kind benefits will be subject to the conditions stated in Treas. Reg. §§ 1.409A-3(i)(iv)(3), (4) and (5).

4.Certain Definitions. As used herein:

a.“Board” means the Board of Trustees of the Company, as constituted from time to time.

b.“Cause” has the meaning assigned to it in the Plan (except that references in such Plan definition to “Company” shall be interpreted to mean the Company or Purchaser, as applicable).

c.“Change of Control” means:

(1)the acquisition in one or more transactions by any “Person” (as the term person is used for purposes of Sections 13(d) or 14(d) of the Securities

-2-

Exchange Act of 1934, as amended (the “Exchange Act”) of “Beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty-five percent (25%) or more of the combined voting power of the Company’s then outstanding voting securities (the “Voting Securities”), provided that for purposes of this clause (1) Voting Securities acquired directly from the Company by any Person shall be excluded from the determination of such Person’s Beneficial ownership of Voting Securities (but such Voting Securities shall be included in the calculation of the total number of Voting Securities then outstanding); or

(2)consummation of a merger, reorganization or consolidation involving the Company if the shareholders of the Company immediately before such merger, reorganization or consolidation do not or will not own directly or indirectly immediately following such merger, reorganization or consolidation, more than fifty percent (50%) of the combined voting power of the outstanding voting securities of the company resulting from or surviving such merger, reorganization or consolidation in substantially the same proportion as their ownership of the Voting Securities outstanding immediately before such merger, reorganization or consolidation;

(3)approval by shareholders of the Company of a complete liquidation or dissolution of the Company; or

(4)approval by shareholders of the Company of an agreement for the sale or other disposition of all or substantially all of the assets of the Company; or

(5)acceptance by shareholders of the Company of shares in a share exchange if the shareholders of the Company immediately before such share exchange do not or will not own directly or indirectly immediately following such share exchange more than fifty percent (50%) of the combined voting power of the outstanding voting securities of the entity resulting from or surviving such share exchange in substantially the same proportion as their ownership of the Voting Securities outstanding immediately before such share exchange; or

(6)a change in the composition of the Board over a period of twenty four (24) months or less such that a majority of the Board members ceases to be comprised of individuals who either: (a) have been Board members continuously since the beginning of such period; or (b) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (a) who were still in office at the time such election or nomination was approved by the Board.

d.“Code” means the Internal Revenue Code of 1986, as amended.

e.“Good Reason” means any of the following:

(1)a reduction in Executive’s base salary as in effect at the time of the Change of Control, other than a reduction in salary of no more than 10% of Executive's then current base salary done in connection with salary reductions proportionately affecting all members of the Company's executive management team and (if the Change of Control involves a Purchaser) proportionately affecting all members of the Purchaser’s executive management team as well;

(2)a significant adverse alteration in the nature or status of Executive’s responsibilities from those in effect at the time of the Change of Control; or

(3)relocation of the place where Executive performs his day-to-day responsibilities at the time of the Change of Control by more than thirty (30) miles.

-3-

However, none of the foregoing events or conditions will constitute Good Reason unless the Executive provides the Company with written objection to the event or condition within 60 days following the occurrence thereof, the Company does not reverse or otherwise cure the event or condition within 30 days of receiving that written objection, and the Executive resigns his employment within 240 days following the expiration of that cure period (but in no event later the deadline specified above in Section 1(ii)).

f.“Plan” means the Company’s Amended and Restated 1997 Long-Term Incentive Plan, as amended.

g.“Subsidiary” means, in respect of the Company or parent, a subsidiary company, whether now or hereafter existing, as defined in Sections 424(f) and (g) of the Code, and any other entity 50% or more of the economic interests in which are owned, directly or indirectly, by the Company.

h.“Target Bonus” means, with respect to any year, the target amount of Executive’s annual bonus for that year.

5.Section 280G. Notwithstanding any other provision of this Agreement or the terms of any other agreement, award or plan, if any payment to or for the benefit of Executive, whether paid or payable pursuant to the terms of this Agreement or otherwise (all such payments and benefits, including the payments and benefits under Section 1, the “Total Payments”), would be subject (in whole or in part) to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced to the minimum extent necessary to avoid the imposition of the Excise Tax on the Total Payments, but only if (i) the net amount of such Total Payments, as so reduced, is greater than or equal to (ii) the net amount of such Total Payments without such reduction (in each case, after subtracting the expected federal, state and local taxes on such Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such Total Payments). The reduction of the Total Payments contemplated in this paragraph will be implemented by determining the Parachute Payment Ratio (as defined below), as determined in good faith by the Company, for each Total Payment and then reducing the Total Payments in order beginning with the Total Payment with the highest Parachute Payment Ratio. For Total Payments with the same Parachute Payment Ratio, such Total Payments will be reduced based on the time of payment of such Total Payments, with the latest payments reduced first. For purposes hereof, the term “Parachute Payment Ratio” shall mean a fraction, (a) the numerator of which is the value of the applicable Total Payment (as calculated for purposes of Section 280G of the Code), and (b) the denominator of which is the intrinsic (i.e., economic) value of such Total Payment.

6.Tax Withholding, Etc. All compensation payable under this Agreement shall be subject to customary withholding taxes and other employment taxes as required with respect to compensation paid by an employer to an employee and the amount of compensation payable hereunder shall be reduced appropriately to reflect the amount of any required withholding. The Company shall have no obligation to make any payments to the Executive or make the Executive whole for the amount of any required taxes.

7.Miscellaneous.

a.Controlling Law. This Agreement, and all questions relating to its validity, interpretation, performance and enforcement, shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.

b.Entire Agreement. This Agreement contains the entire understanding among the parties hereto with respect to the subject matter hereof and supersedes

-4-

all prior agreements and understandings, inducements or conditions regarding that subject matter, express or implied, oral or written[, including (without limitation) that certain Agreement between the parties regarding change of control severance benefits dated ________]. This Agreement may not be modified or amended other than by an agreement in writing.

c.Liability of Trustees, etc. No recourse shall be had for any obligation of the Company hereunder, or for any claim based thereon or otherwise in respect thereof, against any past, present or future trustee, shareholder, officer or employee of the Company, whether by virtue of any statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being expressly waived and released by Executive.

-5-

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.

BRANDYWINE REALTY TRUST

By:    _________________________________

    President and Chief Executive Officer

EXECUTIVE

    _________________________________

-6-

EX-21

Exhibit 21

List of Subsidiaries

AAPOP 2, L.P., a Delaware limited partnership

B Chestnut LP, a Delaware limited partnership

BDN 250 King of Prussia I, LP, a Delaware limited partnership

BDN 250 King of Prussia II, LP, a Delaware limited partnership

BDN Four Points LP, a Delaware limited partnership

BDN Four Points Land LP, a Delaware limited partnership

BDN Four Points Preserve LP, a Delaware limited partnership

BDN Millennium LP, a Delaware limited partnership

BDNNOVA Momentum LP, a Delaware limited partnership

BDN Old Eagle School I, LP, a Delaware limited partnership

BDN Old Eagle School II, LP, a Delaware limited partnership

BDN Old Eagle School III, LP, a Delaware limited partnership

BDN Old Eagle School IV, LP, a Delaware limited partnership

BDN Old Eagle School V, LP, a Delaware limited partnership

BDN Old Eagle School VI, LP, a Delaware limited partnership

BDN Old Eagle School VII, LP, a Delaware limited partnership

BDN Quarry Lake II, LP, a Delaware limited partnership

BDN Radnor Hospitality Property I, LP, a Delaware limited partnership

BDN Radnor Hospitality Property II, LP, a Delaware limited partnership

BDN Radnor Property I, LP, a Delaware limited partnership

BDN Radnor Property II, LP, a Delaware limited partnership

BDN Real Estate Fund I LP, a Delaware limited partnership

Bellet Holding GP, LP, a Delaware limited partnership

Brandywine Acquisition Partners LP, a Delaware limited partnership

Brandywine Austin Properties I LP, a Texas limited partnership

Brandywine Byberry LP, a Delaware limited partnership

Brandywine Cira Chestnut I LP. a Delaware limited partnership

Brandywine Cira Garage I LP, a Delaware limited partnership

Brandywine Cira, L.P., a Pennsylvania limited partnership

Brandywine Cira South LP, a Delaware limited partnership

Brandywine Cira Walnut I LP, a Delaware limited partnership

Brandywine Commerce I LP, a Delaware limited partnership

Brandywine Commerce II LP, a Delaware limited partnership

Brandywine F.C., L.P., a Pennsylvania limited partnership

Brandywine Garza Office I, LP, a Delaware limited partnership

Brandywine Garza Office II, LP, a Delaware limited partnership

Brandywine Garza Office III, LP, a Delaware limited partnership

Brandywine Grande B, L.P., a Delaware limited partnership

Brandywine Grande C, L.P., a Delaware limited partnership

Brandywine Greensboro Drive LP, a Delaware limited partnership

Brandywine International Drive LP, a Delaware limited partnership

Brandywine Industrial Partnership, L.P., a Delaware limited partnership

Brandywine Metroplex, L.P., a Pennsylvania limited partnership

Brandywine Midatlantic, LP, a Delaware limited partnership

Brandywine Office Investors LP, a Delaware limited partnership

Brandywine Operating Partnership, L.P., a Delaware limited partnership

Brandywine Opportunity Fund, LP, a Delaware limited partnership

Brandywine P.M., L.P., a Pennsylvania limited partnership

Brandywine Properties Management LP, a Texas limited partnership

Brandywine TB Florig, L.P., a Pennsylvania limited partnership

Brandywine TB I, L.P., a Pennsylvania limited partnership

Brandywine TB II, L.P., a Pennsylvania limited partnership

Brandywine TB VI, L.P., a Pennsylvania limited partnership

Brandywine TB VII, L.P., a Pennsylvania limited partnership

Brandywine Wood Oak LP, a Delaware limited partnership

Brandywine 145 King of Prussia, LP, a Pennsylvania limited partnership

Brandywine 1177 Beltline Associates, L.P., a Texas limited partnership

Brandywine 3001-3003 JFK, LP, a Delaware limited partnership

Brandywine 3001-3003 JFK II, LP, a Delaware limited partnership

Brandywine 3025 JFK, LP, a Delaware limited partnership

Brandywine 3025 Market, LP, a Pennsylvania limited partnership

Brandywine 3151 Market, LP, a Delaware limited partnership

BT Plymouth LP, a Delaware limited partnership

Commerce Square Partners – Philadelphia Plaza, L.P., a Delaware limited partnership

Concord Airport Plaza Associates, LP, a California limited partnership

Cooperative Way Metro Owner LLC, a Delaware limited liability company

Eight/Oliver Brandywine Partner, L.P., a Pennsylvania limited partnership

Five/Oliver Brandywine Partner, L.P., a Pennsylvania limited partnership

Four Tower Bridge Associates, a Pennsylvania limited partnership

G&I VII Barton Creek LP, a Delaware limited partnership

G&I VII Barton Skyway LP, a Delaware limited partnership

G&I VII Cielo, LP a Delaware limited partnership

G&I VII Encino Trace I LP, a Delaware limited partnership

G&I VII Encino Trace II LP, a Delaware limited partnership

G&I VII Four Points LP, a Delaware limited partnership

G&I VII Lantana, LP a Delaware limited partnership

G&I VII River Place LP, a Delaware limited partnership

Iron Run Limited Partnership V, a Pennsylvania Limited Partnership

Newtech IV Limited Partnership, a Pennsylvania limited partnership

New Two Logan, LP, a Pennsylvania limited partnership

OLS Office Partners, L.P., a Delaware limited partnership

One Rockledge Associates Limited Partnership, a Massachusetts limited partnership

One Uptown Multifamily Property LP, a Delaware limited partnership

One Uptown Office Property LP, a Delaware limited partnership

Philadelphia Plaza – Phase II LP, a Pennsylvania limited partnership

Radnor Center Associates, a Pennsylvania limited partnership

Radnor Properties Associates-II, L.P., a Pennsylvania limited partnership

Radnor Properties-SDC, L.P., a Delaware limited partnership

Radnor Properties-200 RC Holdings, L.P., a Delaware limited partnership

Radnor Properties-200 RC, L.P., a Delaware limited partnership

Radnor Properties-201 KOP, L.P., a Delaware limited partnership

Radnor Properties-555 LA, L.P., a Delaware limited partnership

TB-BDN Plymouth Apartments, LP, a Delaware limited partnership

TB-BDN Plymouth Apartments Holdings, LP, a Delaware limited partnership

Two Logan Holdings LP, a Pennsylvania limited partnership

Two Logan Square Associates, a Pennsylvania limited partnership

Tower Bridge Inn Associates, a Pennsylvania limited partnership

Witmer Operating Partnership I, L.P., a Delaware limited partnership

405 Colorado Holdings LP, a Delaware limited partnership

618 Market Street LP, a Delaware limited partnership

1919 Market Street LP, a Delaware limited partnership

2100 Market Street LP, a Delaware limited partnership

2928 Walton Road LP, a Pennsylvania limited partnership

3000 Market LP, a Delaware limited partnership

3020 Market Holding LP, a Delaware limited partnership

3020 Market Operating LP, a Delaware limited partnership

Interstate Center Associates, a Virginia general partnership

Plymouth TFC, General Partnership, a Pennsylvania general partnership

Campus Crest at Philadelphia, GP, a Delaware general partnership

1919 Market Street Ventures, a Delaware general partnership

BDN Management Inc., a Delaware corporation

Brandywine Holdings, I, Inc., a Pennsylvania corporation

Brandywine Properties I Limited Inc., a Delaware corporation

Brandywine Realty Services Corporation, a Pennsylvania corporation

Brandywine Resources I Inc., a Delaware corporation

Southpoint Land Holdings, Inc., a Pennsylvania corporation

Valleybrooke Land Holdings, Inc., a Pennsylvania corporation

BAA Multifamily Member LLC, a Delaware limited liability company

BAA Office Member LLC, a Delaware limited liability company

B Chestnut GP LLC, a Delaware limited liability company

BCC 1010 Wayne Avenue LLC, a Delaware limited liability company

BCC 1100 Wayne Avenue LLC, a Delaware limited liability company

BCC 8484 Georgia Avenue LLC, a Delaware limited liability company

BDN 250 King of Prussia II GP, LLC, a Delaware limited liability company

BDN 250 King of Prussia Holding Company, LLC, a Delaware limited liability company

BDN 3025 JFK Development, LLC, a Delaware limited liability company

BDN Austin Properties LLC, a Delaware limited liability company

BDN Austin Properties II LLC, a Delaware limited liability company

BDN Brokerage LLC, a Pennsylvania limited liability company

BDN Cira Labs LLC, a Delaware limited liability company

BDN Cira Square Sub 1, LLC, a Delaware limited liability company

BDN Cira Square Sub Manager, LLC, a Delaware limited liability company

BDN Four Points GP LLC, a Delaware limited liability company

BDN Four Points Land GP LLC, a Delaware limited liability company

BDN Four Points Preserve GP LLC, a Delaware limited liability company

BDN GC Services LLC, a Delaware limited liability company

BDN GP Real Estate Fund I LLC, a Delaware limited liability company

BDN Investment Holdings, LLC, a Delaware limited liability company

BDN Lending, LLC, a Pennsylvania limited liability company

BDN Management Holdings, LLC, a Delaware limited liability company

BDN Millennium GP, LLC, a Delaware limited liability company

BDN Millennium Holding Company, LLC, a Delaware limited liability company

BDN NoMA LLC, a Delaware limited liability company

BDN Old Eagle School I GP, LLC, a Delaware limited liability company

BDN Old Eagle School II GP, LLC, a Delaware limited liability company

BDN Old Eagle School III GP, LLC, a Delaware limited liability company

BDN Old Eagle School IV GP, LLC, a Delaware limited liability company

BDN Old Eagle School V GP, LLC, a Delaware limited liability company

BDN Old Eagle School VI GP, LLC, a Delaware limited liability company

BDN Old Eagle School VII GP, LLC, a Delaware limited liability company

BDN Properties I LLC, a Delaware limited liability company

BDN Quarry Lake II GP, LLC, a Delaware limited liability company

BDN Radnor Holding Company, LLC, a Delaware limited liability company

BDN Radnor Hospitality Holding Company, LLC, a Delaware limited liability company

BDN Radnor Hospitality Property II GP, LLC, a Delaware limited liability company

BDN Radnor Property II GP, LLC, a Delaware limited liability company

BDN Uptown Office Developer LLC, a Delaware limited liability company

BDN Venture LLC, a Delaware limited liability company

BDN-West Elm Holding LLC, a Pennsylvania limited liability company

BDNSY Mezz Sub, LLC, a Delaware limited liability company

Bellet GP, LLC, a Delaware limited liability company

Bellet, LLC, a Delaware limited liability company

BOI Pacific Ridge LLC, a Delaware limited liability company

Brandywine Austin LLC, a Delaware limited liability company

Brandywine Austin I LLC, a Delaware limited liability company

Brandywine Austin Properties LLC, a Delaware limited liability company

Brandywine Bergstrom LLC, a Delaware limited liability company

Brandywine Boulders, LLC, a Delaware limited liability company

Brandywine Brokerage Services, LLC, A New Jersey limited liability company

Brandywine Byberry LLC, a Delaware limited liability company

Brandywine Calverton LLC, a Delaware limited liability company

Brandywine Charlottesville LLC, a Virginia limited liability company

Brandywine Cira Brokerage LLC, d Delaware limited liability company

Brandywine Cira Chestnut LLC, a Delaware limited liability company

Brandywine Cira Garage LLC, a Delaware limited liability company

Brandywine Cira Garage Holding LLC, a Delaware limited liability company

Brandywine Cira Garage Holding MM LLC, a Delaware limited liability company

Brandywine Cira, LLC, a Pennsylvania limited liability company

Brandywine Cira South GP LLC, a Delaware limited liability company

Brandywine Cira Walnut LLC, a Delaware limited liability company

Brandywine Commerce I GP LLC, a Delaware limited liability company

Brandywine Commerce II GP LLC, a Delaware limited liability company

Brandywine Continental LLC, a Delaware limited liability company

Brandywine Dabney, L.L.C., a Delaware limited liability company

Brandywine F.C., L.L.C., a Pennsylvania limited liability company

Brandywine Garza, LLC., a Delaware limited liability company

Brandywine Garza Office I GP, LLC, a Delaware limited liability company

Brandywine Garza Office II GP, LLC, a Delaware limited liability company

Brandywine Garza Office III GP, LLC, a Delaware limited liability company

Brandywine Gateway LLC, a NJ limited liability company

Brandywine Gibbsboro LLC, a Delaware limited liability company

Brandywine Grande B, L.L.C., a Delaware limited liability company

Brandywine Grande C LLC, a Delaware limited liability company

Brandywine Interstate 50, L.L.C., a Delaware limited liability company

Brandywine Lake Merritt LLC, a Delaware limited liability company

Brandywine - Main Street, LLC, a Delaware limited liability company

Brandywine Management Holdings II, LLC, a Delaware limited liability company

Brandywine MD Discovery District, LLC, a Delaware limited liability company

Brandywine Metroplex LLC., a Pennsylvania limited liability company

Brandywine Midatlantic, LLC, a Delaware limited liability company

Brandywine One Logan LLC, a Pennsylvania limited liability company

Brandywine One Rodney Square, L.L.C., a Delaware limited liability company

Brandywine One Uptown Multifamily LLC, a Delaware limited liability company

Brandywine One Uptown Office LLC, a Delaware limited liability company

Brandywine P.M., L.L.C., a Pennsylvania limited liability company

Brandywine Piazza, L.L.C., a New Jersey limited liability company

Brandywine Plaza Ridge I, LLC, a Delaware limited liability company

Brandywine Plaza 1000, L.L.C., a New Jersey limited liability company

Brandywine Promenade, L.L.C., a New Jersey limited liability company

Brandywine Radnor 200 Holdings LLC, a Delaware limited liability company

Brandywine Radnor Center LLC, a Pennsylvania limited liability company

Brandywine Research LLC, a Delaware limited liability company

Brandywine TB Florig, LLC, a Pennsylvania limited liability company

Brandywine TB I, L.L.C., a Pennsylvania limited liability company

Brandywine TB II GP, L.L.C., a Pennsylvania limited liability company

Brandywine TB VI, L.L.C., a Pennsylvania limited liability company

Brandywine TB VII, L.L.C., a Pennsylvania limited liability company

Brandywine Tysons LLC, a Delaware limited liability company

Brandywine Witmer, L.L.C., a Pennsylvania limited liability company

Brandywine 55 US Avenue LLC, a New Jersey limited liability company

Brandywine 145 King of Prussia, LLC, a Pennsylvania limited liability company

Brandywine 300 Delaware, LLC, a Delaware limited liability company

Brandywine 1177 Beltline Associates GP, LLC, a Delaware limited liability company

Brandywine 2201 Co-Way LLC a Delaware limited liability company

Brandywine 2201 Co-Way II LLC, a Delaware limited liability company

Brandywine 3001 Market, LLC, a Delaware limited liability company

Brandywine 3001-3003 HoldCo, LLC, a Delaware limited liability company

Brandywine 3001-3003 JFK II, LLC, a Delaware limited liability company

Brandywine 3025 JFK II, LLC, a Delaware limited liability company

Brandywine 3025 JFK II REIT, LLC, a Delaware limited liability company

Brandywine 3025 JFK Holdings II, LLC, a Delaware limited liability company

Brandywine 3025 Market Holdings, LLC, a Delaware limited liability company

Brandywine 3151 Market GP, LLC, a Delaware limited liability company

BRE/Logan I, L.L.C., a Delaware limited liability company

BRE/Logan II, L.L.C., a Delaware limited liability company

BRE/Logan III, L.L.C., a Delaware limited liability company

BT Plymouth GP, LLC, a Delaware limited liability company

Chestnut Venture LLC, a Delaware limited liability company

Cira Square, LLC, a Delaware limited liability company

Cira Square REIT, LLC, a Delaware limited liability company

Cira Square II, LLC, a Delaware limited liability company

Cira Square III, LLC, a Delaware limited liability company

Cira Square IV, LLC, a Delaware limited liability company

e-Tenants LLC, a Delaware limited liability company

G&I VI 7150 Windsor MZ LLC, a Delaware limited liability company

G&I VI 7310 Tilghman MZ LLC, a Delaware limited liability company

G&I VI 7310 Tilghman FE LLC, a Delaware limited liability company

G&I VI 7248 Tilghman GP LLC, a Delaware limited liability company

G&I VI 7248 Tilghman LP LLC, a Delaware limited liability company

G&I VI 6575 Snowdrift GP LLC, a Delaware limited liability company

G&I VI 6575 Snowdrift LP LLC, a Delaware limited liability company

G&I VI 7350 Tilghman MZ LLC, a Delaware limited liability company

G&I VI 655/755 Business Center MZ LLC, a Delaware limited liability company

G&I VI 655/755 Business Center FE LLC, a Delaware limited liability company

G&I VI 1155 Business Center MZ LLC, a Delaware limited liability company

G&I VI 1155 Business Center FE LLC, a Delaware limited liability company

G&I VI 700/800 Business Center MZ LLC, a Delaware limited liability company

G&I VI 700/800 Business Center FE LLC, a Delaware limited liability company

G&I VI 630 Dresher MZ LLC, a Delaware limited liability company

G&I VI 630 Dresher FE LLC, a Delaware limited liability company

G&I VI 650 Dresher MZ LLC, a Delaware limited liability company

G&I VI 650 Dresher FE LLC, a Delaware limited liability company

G&I VI 300 Welsh 1/2 MZ LLC, a Delaware limited liability company

G&I VI 300 Welsh 1/2 FE LLC, a Delaware limited liability company

G&I VI One Greenwood MZ LLC, a Delaware limited liability company

G&I VI One Greenwood FE LLC, a Delaware limited liability company

G&I VI Two Greenwood MZ LLC, a Delaware limited liability company

G&I VI Two Greenwood FE LLC, a Delaware limited liability company

G&I VI Three Greenwood MZ LLC, a Delaware limited liability company

G&I VI Three Greenwood FE LLC, a Delaware limited liability company

G&I VI 500 Office Center MZ LLC, a Delaware limited liability company

G&I VI 500 Office Center FE LLC, a Delaware limited liability company

G&I VI 501 Office Center MZ LLC, a Delaware limited liability company

G&I VI 501 Office Center FE LLC, a Delaware limited liability company

G&I VI 321/323 Norristown MZ LLC, a Delaware limited liability company

G&I VI 321/323 Norristown FE LLC, a Delaware limited liability company

G&I VI 220 Commerce MZ LLC, a Delaware limited liability company

G&I VI 220 Commerce FE LLC, a Delaware limited liability company

G&I VI 520 Virginia MZ LLC, a Delaware limited liability company

G&I VI 520 Virginia FE LLC, a Delaware limited liability company

G&I VI Interchange Office LLC, a Delaware limited liability company

G&I VII Austin Office LLC, a Delaware limited liability company

G&I VII Barton Creek GP LLC, a Delaware limited liability company

G&I VII Barton Skyway GP LLC, a Delaware limited liability company

G&I VII Cielo GP LLC, a Delaware limited liability company

G&I VII Encino Trace I GP LLC, a Delaware limited liability company

G&I VII Encino Trace II GP LLC, a Delaware limited liability company

G&I VII Four Points GP LLC, a Delaware limited liability company

G&I VII Lantana GP LLC, a Delaware limited liability company

G&I VII River Place GP LLC, a Delaware limited liability company

Gateway EH, LLC, a New Jersey limited liability company

Gateway EH 4/5, LLC, a New Jersey limited liability company

HSRE-Campus Crest IX, LLC, a Delaware limited liability company

MAP Ground Lease Venture LLC, a Delaware limited liability company

MAP Mezzanine Borrower LLC, a Delaware limited liability company

MAP Ground Lease Owner LLC, a Delaware limited liability company

Mid-Atlantic Property Holdings LLC, a Delaware limited liability company

New Two Logan GP, LLC, a Pennsylvania limited liability company

OCS Sub, LLC, a Delaware limited liability company

OCS/TCS Services, LLC, a Delaware limited liability company

OCS TRS, LLC, a Delaware limited liability company

One Commerce Square REIT LLC, a Delaware limited liability company

One Uptown Multifamily GP LLC, a Delaware limited liability company

One Uptown Office GP LLC, a Delaware limited liability company

PA-MD NNN Berwyn Park, LLC, a Delaware limited liability company

PA-MD NNN Office JV, LLC, a Delaware limited liability company

PA-MD NNN Office Mezz, LLC, a Delaware limited liability company

PA-MD NNN Office Research, LLC, a Delaware limited liability company

PA-MD NNN Office Southpoint, LLC, a Delaware limited liability company

Radnor GP, L.L.C., a Delaware limited liability company

Radnor GP-SDC, L.L.C., a Delaware limited liability company

Radnor GP-200 RC, L.L.C., a Delaware limited liability company

Radnor GP-201 KOP, L.L.C., a Delaware limited liability company

Radnor GP-555 LA, L.L.C., a Delaware limited liability company

PJP Building Two, L.C., a Virginia limited liability company

PJP Building Six, L.C., a Virginia limited liability company

PJP Building Seven, L.C., a Virginia limited liability company

TB-BDN Plymouth Apartments Holdings GP, LLC, a Delaware limited liability company

TCS Sub, LLC, a Delaware limited liability company

TCS TRS, LLC, a Delaware limited liability company

Two Commerce Square REIT LLC, a Delaware limited liability company

Walnut Street Hospitality LLC, a Delaware limited liability company

3 Logan LLC, a Delaware limited liability company

25 M Street Holdings LLC, a Delaware limited liability company

405 Colorado Holdings GP LLC a Delaware limited liability company

618 Market Holdco General Partner LLC, a Delaware limited liability company

618 Market Mezz Holdco LLC, a Delaware limited liability company

720 Blair Mill Road LLC, a Delaware limited liability company

1919 Market Holdco General LLC, a Delaware limited liability company

2100 Market Holdco General Partner LLC, a Delaware limited liability company

2100 Market Mezz Holdco LLC, a Delaware limited liability company

2251 Corporate Park Metro Owner LLC, a Delaware limited liability company

2291 Wood Oak Metro Owner LLC, a Delaware limited liability company

2411 Dulles Corner Metro Owner LLC, a Delaware limited liability company

2355 Dulles Corner Metro Owner LLC, a Delaware limited liability company

2928 Walton LLC, a Delaware limited liability company

3000 Market Mezz LLC, a Delaware limited liability company

3000 Market Mezz Holdco LLC, a Delaware limited liability company

3000 Market Holdco General Partner, LLC, a Delaware limited liability company

3020 Market Holding GP LLC, a Delaware limited liability company

3025 JFK TRS LLC, a Delaware limited liability company

3141 Fairview LLC, a Delaware limited liability company

4040 LLC, a Virginia limited liability company

4040 Wilson LLC, a Delaware limited liability company

51 N 50 Patterson Holdings, L.L.C., a Delaware limited liability company

51 N 50 Patterson Corporate Member, L.L.C., a Delaware limited liability company

13880 Dulles Corner Metro Owner LLC, a Delaware limited liability company

13825 Sunrise Valley Metro Owner LLC, a Delaware limited liability company

1000 Chesterbrook Boulevard Partnership, a Pennsylvania general partnership

Atlantic American Properties Trust, a Maryland real estate investment trust

Brandywine Capital Trust I, a Delaware statutory trust

Brandywine Capital Trust II, a Delaware statutory trust

Broadmoor Austin Associates, a Texas joint venture

Coppel Associates, a Texas joint venture

Seven Tower Bridge Associates, a Pennsylvania limited partnership

Brandywine – AI Venture LLC, a Delaware limited liability company

G&I VI Interchange Office LLC, a Delaware limited liability company

G&I VII Austin Office LLC, a Delaware limited liability company

Herndon Innovation Center Metro Portfolio Venture LLC, a Delaware limited liability company

Iron Run Venture II LLC, a Delaware limited liability company

One Rockledge Associates Limited Partnership, a Massachusetts limited partnership

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-3 (Nos. 333-237870, 333-158590, 333-52952) and on Form S-8 (Nos. 333-14243, 333-28427, 333-52957, 333-123446, 333-125311, 333-131171, 333-141906, 333-142752, 333-142754, 333-167266, 333-218117) of Brandywine Realty Trust of our report dated February 24, 2022 relating to the financial statements and financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 24, 2022

EX-23.2

Exhibit 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statement on Form S-3 (No. 333-237870-01) of Brandywine Operating Partnership, L.P. of our report dated February 24, 2022 relating to the financial statements and financial statement schedules and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

February 24, 2022

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

I, Gerard H. Sweeney, certify that:

1.I have reviewed this annual report on Form 10-K of Brandywine Realty Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 24, 2022	/s/ Gerard H. Sweeney
	Gerard H. Sweeney President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

I, Thomas E. Wirth, certify that:

1.I have reviewed this annual report on Form 10-K of Brandywine Realty Trust;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 24, 2022	/s/ Thomas E. Wirth
	Thomas E. Wirth Executive Vice President and Chief Financial Officer

EX-31.3

Exhibit 31.3

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

I, Gerard H. Sweeney, certify that:

1.I have reviewed this annual report on Form 10-K of Brandywine Operating Partnership, L.P.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 24, 2022	/s/ Gerard H. Sweeney
	Gerard H. Sweeney
	President and Chief Executive Officer

EX-31.4

Exhibit 31.4

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

I, Thomas E. Wirth, certify that:

1.I have reviewed this annual report on Form 10-K of Brandywine Operating Partnership, L.P.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 24, 2022	/s/ Thomas E. Wirth
	Thomas E. Wirth
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

RULE 13(a)-14(b) CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Annual Report of Brandywine Realty Trust (the “Company”) on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerard H. Sweeney, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gerard H. Sweeney

Gerard H. Sweeney
President and Chief Executive Officer

Date: February 24, 2022

* A signed original of this written statement required by Section 906 has been provided to Brandywine Realty Trust and will be retained by Brandywine Realty Trust and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

RULE 13(a)-14(b) CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Annual Report of Brandywine Realty Trust (the “Company”) on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas E. Wirth, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas E. Wirth

Thomas E. Wirth
Executive Vice President and Chief Financial Officer

Date: February 24, 2022

* A signed original of this written statement required by Section 906 has been provided to Brandywine Realty Trust and will be retained by Brandywine Realty Trust and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.3

Exhibit 32.3

RULE 13(a)-14(b) CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Annual Report of Brandywine Operating Partnership, L.P. (the “Partnership”) on Form 10-K for the quarter ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerard H. Sweeney, President and Chief Executive Officer of Brandywine Realty Trust, the Partnership's sole general partner, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gerard H. Sweeney

Gerard H. Sweeney

President and Chief Executive Officer

Date: February 24, 2022

* A signed original of this written statement required by Section 906 has been provided to Brandywine Realty Trust and will be retained by Brandywine Realty Trust and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.4

Exhibit 32.4

RULE 13(a)-14(b) CERTIFICATION

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002*

In connection with the Annual Report of Brandywine Operating Partnership, L.P. (the “Partnership”) on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas E. Wirth, Executive Vice President and Chief Financial Officer of Brandywine Realty Trust, the Partnership's sole general partner, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas E. Wirth

Thomas E. Wirth

Executive Vice President and Chief Financial Officer

Date: February 24, 2022

* A signed original of this written statement required by Section 906 has been provided to Brandywine Realty Trust and will be retained by Brandywine Realty Trust and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - USD ($)	12 Months Ended
	Dec. 31, 2021	Feb. 17, 2022	Jun. 30, 2021
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity Registrant Name	Brandywine Realty Trust
Entity Incorporation, State or Country Code	MD
Entity File Number	001-9106
Entity Tax Identification Number	23-2413352
Entity Address, Address Line One	2929 Arch Street
Entity Address, Address Line Two	Suite 1800
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19104
City Area Code	610
Local Phone Number	325-5600
Title of 12(b) Security	Common Shares of Beneficial Interest
Trading Symbol	BDN
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 2,282,260,692
Entity Common Stock, Shares Outstanding		171,383,912
Documents Incorporated by Reference	Portions of the proxy statement for the 2022 Annual Meeting of Shareholders of Brandywine Realty Trust are incorporated by reference into Part III of this Form 10-K.
Entity Central Index Key	0000790816
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Document Information [Line Items]
Entity Registrant Name	Brandywine Operating Partnership, L.P.
Entity Incorporation, State or Country Code	DE
Entity File Number	000-24407
Entity Tax Identification Number	23-2862640
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Central Index Key	0001060386

XML

Audit Information	12 Months Ended
	Dec. 31, 2021
Auditor Information [Abstract]
Auditor Name	PricewaterhouseCoopers LLP
Auditor Location	Philadelphia, Pennsylvania
Auditor Firm ID	238

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Real estate investments:
Operating properties	$ 3,472,602	$ 3,474,109
Accumulated depreciation	(957,450)	(896,561)
Right of use asset - operating leases, net	20,313	20,977
Operating real estate investments, net	2,535,465	2,598,525
Construction-in-progress	277,237	210,311
Land held for development	114,604	117,984
Prepaid leasehold interests in land held for development, net	27,762	39,185
Total real estate investments, net	2,955,068	2,966,005
Assets held for sale, net	562	7,349
Cash and cash equivalents	27,463	46,344
Accounts receivable	11,875	13,536
Accrued rent receivable, net of allowance of $4,133 and $5,086 as of December 31, 2021 and December 31, 2020, respectively	167,210	155,372
Investment in unconsolidated real estate ventures	435,506	401,327
Deferred costs, net	86,862	84,856
Intangible assets, net	28,556	48,570
Other assets	133,094	176,747
Total assets	3,846,196	3,900,106
LIABILITIES AND BENEFICIARIES' EQUITY
Unsecured credit facility	23,000	0
Unsecured term loan, net	249,608	249,084
Unsecured senior notes, net	1,580,978	1,581,511
Accounts payable and accrued expenses	150,151	121,982
Distributions payable	32,765	32,706
Deferred income, gains and rent	23,849	21,396
Intangible liabilities, net	12,981	18,448
Lease liability - operating leases	22,962	22,758
Other liabilities	48,683	47,573
Total liabilities	2,144,977	2,095,458
Commitments and contingencies (See Note 20)
Brandywine Operating Partnership, L.P.'s equity:
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 171,126,257 and 170,572,964 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	1,712	1,707
Additional paid-in-capital	3,146,786	3,138,152
Deferred compensation payable in common shares	18,491	17,516
Common shares in grantor trust, 1,169,703 and 1,160,494 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	(18,491)	(17,516)
Cumulative earnings	1,122,372	1,110,083
Accumulated other comprehensive loss	(2,020)	(7,561)
Cumulative distributions	(2,578,583)	(2,448,238)
Total Brandywine Realty Trust's equity	1,690,267	1,794,143
Noncontrolling interests	10,952	10,505
Total beneficiaries' equity	1,701,219	1,804,648
Total liabilities and partners' equity	$ 3,846,196	$ 3,900,106

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accrued rent receivable, allowance	$ 4,133	$ 5,086
Common stock, par or stated value per share (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common shares in grantor trust, issued and outstanding (in shares)	1,169,703	1,160,494

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CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Total revenue	$ 486,819	$ 534,852	$ 580,417
Operating expenses
Property operating expenses	121,890	132,172	154,361
Real estate taxes	53,621	63,032	62,237
Third party management expenses	12,800	10,252	9,248
Depreciation and amortization	178,105	188,283	210,005
General and administrative expenses	30,153	30,288	32,156
Total operating expenses	396,569	424,027	468,007
Gain on sale of real estate
Net gain on disposition of real estate	142	289,461	356
Net gain on sale of undepreciated real estate	2,903	201	2,020
Total gain on sale of real estate	3,045	289,662	2,376
Operating income	93,295	400,487	114,786
Other income (expense):
Interest and investment income	8,295	1,939	2,318
Interest expense	(62,617)	(73,911)	(81,512)
Interest expense - amortization of deferred financing costs	(2,836)	(2,904)	(2,768)
Equity in income (loss) of real estate venture	(26,697)	(18,584)	(9,922)
Net gain on real estate venture transactions	2,973	75	11,639
Net income before income taxes	12,413	307,102	34,541
Income tax (provision) benefit	(47)	224	(12)
Net income	12,366	307,326	34,529
Net income attributable to noncontrolling interests	(77)	(1,799)	(262)
Net income attributable to Brandywine Realty Trust	12,289	305,527	34,267
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)	(410)	(396)
Net income attributable to Common Shareholders/ Unitholders of Brandywine Realty Trust	$ 11,868	$ 305,117	$ 33,871
Basic income per Common Share (in dollars per shares)	$ 0.07	$ 1.77	$ 0.19
Diluted income per Common Share (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Basic weighted average shares outstanding (in shares)	170,878,185	171,926,079	176,132,941
Diluted weighted average shares outstanding (in shares)	172,273,240	172,317,076	176,686,813
Rents
Revenue
Total revenue	$ 451,519	$ 513,504	$ 554,665
Third party management fees, labor reimbursement and leasing
Revenue
Total revenue	26,444	18,580	19,626
Other
Revenue
Total revenue	$ 8,856	$ 2,768	$ 6,126

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income		$ 12,366	$ 307,326	$ 34,529
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments		4,817	(5,972)	(8,210)
Amortization of interest rate contracts	[1]	752	752	770
Total comprehensive income (loss)		5,569	(5,220)	(7,440)
Comprehensive income		17,935	302,106	27,089
Comprehensive income attributable to noncontrolling interest		(105)	(1,770)	(221)
Comprehensive income attributable to Brandywine Realty Trust/Brandywine Operating Partnership		$ 17,830	$ 300,336	$ 26,868

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

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CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Deferred Compensation Payable in Common Shares	Additional Paid-in Capital	Common Shares in Grantor Trust	Cumulative Earnings	Cumulative Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Cumulative Distributions	Noncontrolling Interests
Beginning balance (in shares) at Dec. 31, 2018			176,873,324	977,120
Beneficiaries' Equity, beginning balance at Dec. 31, 2018	$ 1,811,028	$ (5,336)	$ 1,770	$ 14,021	$ 3,200,312	$ (14,021)	$ 775,625	$ (5,336)	$ 5,029	$ (2,183,909)	$ 12,201
Parent Company
Net income	34,529						34,267				262
Other comprehensive income	$ (7,440)								(7,399)		(41)
Repurchase and retirement of Common Shares of Beneficial Interest (in shares)	(1,337,169)		(1,337,169)
Repurchase and retirement of Common Shares of Beneficial Interest	$ (17,281)		$ (13)		(17,268)
Issuance of partnership interest in consolidated real estate venture	27										27
Purchase of partnership interest in consolidated real estate venture	(2,180)				(983)						(1,197)
Redemption of LP Units (in shares)			1,245
Redemption of LP Units	0				16						(16)
Share-based compensation activity (in shares)			845,210	41,342
Share-based compensation activity	10,027		$ 9		10,018
Share Issuance from/(to) Deferred Compensation Plan (in shares)			97,485	87,080
Share Issuance from/(to) Deferred Compensation Plan	0			$ 2,195		(2,195)
Reallocation of Noncontrolling Interest	0				63						(63)
Distributions declared	(135,071)									(134,324)	(747)
Ending balance (in shares) at Dec. 31, 2019			176,480,095	1,105,542
Beneficiaries' Equity, ending balance at Dec. 31, 2019	1,688,303		$ 1,766	$ 16,216	3,192,158	(16,216)	804,556		(2,370)	(2,318,233)	10,426
Parent Company
Net income	307,326						305,527				1,799
Other comprehensive income	$ (5,220)								(5,191)		(29)
Repurchase and retirement of Common Shares of Beneficial Interest (in shares)	(6,248,483)		(6,248,483)
Repurchase and retirement of Common Shares of Beneficial Interest	$ (59,999)		$ (62)		(59,937)
Sale of partnership interest to consolidated real estate venture	(1,017)										(1,017)
Distributions from consolidated real estate venture	(22)										(22)
Share-based compensation activity (in shares)			309,096	50,967
Share-based compensation activity	6,236		$ 3		6,233
Share Issuance from/(to) Deferred Compensation Plan (in shares)			32,256	3,985
Share Issuance from/(to) Deferred Compensation Plan	(206)			$ 1,300	(206)	(1,300)
Reallocation of Noncontrolling Interest	0				(96)						96
Distributions declared	(130,753)									(130,005)	(748)
Ending balance (in shares) at Dec. 31, 2020			170,572,964	1,160,494
Beneficiaries' Equity, ending balance at Dec. 31, 2020	1,804,648		$ 1,707	$ 17,516	3,138,152	(17,516)	1,110,083		(7,561)	(2,448,238)	10,505
Parent Company
Net income	12,366						12,289				77
Other comprehensive income	5,569								5,541		28
Issuance of Common Shares of Beneficial Interest (in shares)			226,695
Issuance of Common Shares of Beneficial Interest	3,052		$ 3		3,049
Issuance of partnership interest in consolidated real estate venture	2,765										2,765
Redemption of LP Units	(2,334)										(2,334)
Share-based compensation activity (in shares)			344,656	70,645
Share-based compensation activity	6,354		$ 2		6,352
Share Issuance from/(to) Deferred Compensation Plan (in shares)			(18,058)	(61,436)
Share Issuance from/(to) Deferred Compensation Plan	(198)			$ 975	(198)	(975)
Reallocation of Noncontrolling Interest	0				(569)						569
Distributions declared	(131,003)									(130,345)	(658)
Ending balance (in shares) at Dec. 31, 2021			171,126,257	1,169,703
Beneficiaries' Equity, ending balance at Dec. 31, 2021	$ 1,701,219		$ 1,712	$ 18,491	$ 3,146,786	$ (18,491)	$ 1,122,372		$ (2,020)	$ (2,578,583)	$ 10,952

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CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Distributions declared per Common Share (in dollars per share)	$ 0.76	$ 0.76	$ 0.76

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 12,366	$ 307,326	$ 34,529
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	178,105	188,283	210,005
Amortization of deferred financing costs	2,836	2,904	2,768
Amortization of debt discount/(premium), net	(1,951)	(568)	189
Amortization of stock compensation costs	7,130	6,627	6,876
Straight-line rent income	(13,485)	(14,743)	(11,369)
Amortization of acquired above (below) market leases, net	(5,377)	(4,867)	(8,857)
Ground rent expense	918	1,455	1,470
Provision for doubtful accounts	0	1,049	(1,345)
Net gain on real estate venture transactions	(2,973)	(75)	(11,639)
Net gain on sale of interests in real estate	(3,045)	(289,662)	(2,376)
Loss from unconsolidated real estate ventures, net of distributions	26,697	18,584	10,242
Income tax provision (benefit)	47	(224)	12
Changes in assets and liabilities:
Accounts receivable	2,506	(2,031)	(248)
Other assets	(19,325)	(5,034)	9,368
Accounts payable and accrued expenses	2,974	14,374	(5,599)
Deferred income, gains and rent	2,986	(12,149)	9,319
Other liabilities	465	14,557	(9,115)
Net cash provided by operating activities	190,874	225,806	234,230
Cash flows from investing activities:
Acquisition of properties	0	(41,950)	0
Acquisition of partners interest in consolidated real estate venture	0	0	(2,181)
Proceeds from the sale of properties	10,303	278,114	41,795
Proceeds from real estate venture sales	0	0	9,730
Proceeds from insurance	1,250	0	0
Proceeds from note receivable	50,000	0	0
Issuance of note receivable	0	(50,000)	0
Proceeds from repayment of mortgage notes receivable	0	0	3,341
Capital expenditures for tenant improvements	(56,830)	(73,166)	(67,258)
Capital expenditures for redevelopments	(48,022)	(21,664)	(53,846)
Capital expenditures for developments	(30,269)	(65,420)	(77,192)
Advances for the purchase of tenant assets, net of repayments	270	1,488	(1,035)
Investment in unconsolidated real estate ventures	(31,643)	(719)	(253)
Deposits for real estate	(2,550)	0	(4,181)
Capital distributions from unconsolidated real estate ventures	27,028	9,001	35,906
Leasing costs paid	(19,852)	(17,394)	(15,485)
Net cash provided by (used in) investing activities	(100,315)	18,290	(130,659)
Cash flows from financing activities:
Repayments of mortgage notes payable	0	(94,993)	(7,595)
Proceeds from credit facility borrowings	154,000	318,000	348,500
Repayments of Long-term Lines of Credit	(131,000)	(318,000)	(441,000)
Proceeds from unsecured notes	0	0	216,373
Payments of Financing Costs	0	0	(1,965)
Exercise of stock options, net	(63)	47	3,771
Payments On Account Of Employee Tax Withholdings On Share Based Awards	(1,762)	(1,346)	(1,554)
Partner contributions to consolidated real estate venture	2,765	0	27
Repurchase and retirement of common shares	0	(60,000)	(17,282)
Redemption of limited partnership units	(2,334)	0	0
Distributions paid to shareholders	(130,255)	(131,150)	(134,140)
Distributions to noncontrolling interest	(687)	(747)	(747)
Net cash used in financing activities	(109,336)	(288,189)	(35,612)
Increase/(Decrease) in cash and cash equivalents and restricted cash	(18,777)	(44,093)	67,959
Cash and cash equivalents and restricted cash at beginning of year	47,077	91,170	23,211
Cash and cash equivalents and restricted cash at end of period	28,300	47,077	91,170
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	46,344	90,499	22,842
Restricted cash, beginning of period	733	671	369
Cash and cash equivalents, end of period	27,463	46,344	90,499
Restricted cash, end of period	837	733	671
Cash and cash equivalents and restricted cash	28,300	47,077	91,170
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the years ended December 31, 2021, 2020 and 2019 of $8,689, $4,650 and $2,246 respectively	72,391	79,498	66,508
Cash paid for income taxes	785	688	1,385
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid	32,765	32,706	33,815
Change in investment in real estate ventures as a result of deconsolidation	32,761	0	1,806
Change in operating real estate from deconsolidation of operating properties	30,073	(427,710)	0
Change in investment in real estate ventures from deconsolidation of operating properties	0	(296,262)	0
Change in mortgage notes payable from deconsolidation of operating properties	0	(220,271)	0
Change in other assets as a result of deconsolidation of operating properties	(2,688)	1,471	0
Change in capital expenditures financed through accounts payable at period end	22,744	(9,949)	(10,618)
Change in capital expenditures financed through retention payable at period end	$ (613)	$ 284	$ (946)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Supplemental disclosure:
Capitalized interest	$ 8,689	$ 4,650	$ 2,246

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CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Real estate investments:
Operating properties	$ 3,472,602	$ 3,474,109
Accumulated depreciation	(957,450)	(896,561)
Right of use asset - operating leases, net	20,313	20,977
Operating real estate investments, net	2,535,465	2,598,525
Construction-in-progress	277,237	210,311
Land held for development	114,604	117,984
Prepaid leasehold interests in land held for development, net	27,762	39,185
Total real estate investments, net	2,955,068	2,966,005
Assets held for sale, net	562	7,349
Cash and cash equivalents	27,463	46,344
Accounts receivable	11,875	13,536
Accrued rent receivable, net of allowance of $4,133 and $5,086 as of December 31, 2021 and December 31, 2020, respectively	167,210	155,372
Investment in unconsolidated real estate ventures	435,506	401,327
Deferred costs, net	86,862	84,856
Intangible assets, net	28,556	48,570
Other assets	133,094	176,747
Total assets	3,846,196	3,900,106
LIABILITIES AND BENEFICIARIES' EQUITY
Unsecured credit facility	23,000	0
Unsecured term loan, net	249,608	249,084
Unsecured senior notes, net	1,580,978	1,581,511
Accounts payable and accrued expenses	150,151	121,982
Distributions payable	32,765	32,706
Deferred income, gains and rent	23,849	21,396
Intangible liabilities, net	12,981	18,448
Lease liability - operating leases	22,962	22,758
Other liabilities	48,683	47,573
Total liabilities	2,144,977	2,095,458
Commitments and contingencies (See Note 20)
Brandywine Operating Partnership, L.P.'s equity:
Accumulated other comprehensive loss	(2,020)	(7,561)
Total liabilities and partners' equity	3,846,196	3,900,106
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Real estate investments:
Operating properties	3,472,602	3,474,109
Accumulated depreciation	(957,450)	(896,561)
Right of use asset - operating leases, net	20,313	20,977
Operating real estate investments, net	2,535,465	2,598,525
Construction-in-progress	277,237	210,311
Land held for development	114,604	117,984
Prepaid leasehold interests in land held for development, net	27,762	39,185
Total real estate investments, net	2,955,068	2,966,005
Assets held for sale, net	562	7,349
Cash and cash equivalents	27,463	46,344
Accounts receivable	11,875	13,536
Accrued rent receivable, net of allowance of $4,133 and $5,086 as of December 31, 2021 and December 31, 2020, respectively	167,210	155,372
Investment in unconsolidated real estate ventures	435,506	401,327
Deferred costs, net	86,862	84,856
Intangible assets, net	28,556	48,570
Other assets	133,094	176,747
Total assets	3,846,196	3,900,106
LIABILITIES AND BENEFICIARIES' EQUITY
Unsecured credit facility	23,000	0
Unsecured term loan, net	249,608	249,084
Unsecured senior notes, net	1,580,978	1,581,511
Accounts payable and accrued expenses	150,151	121,982
Distributions payable	32,765	32,706
Deferred income, gains and rent	23,849	21,396
Intangible liabilities, net	12,981	18,448
Lease liability - operating leases	22,962	22,758
Other liabilities	48,683	47,573
Total liabilities	2,144,977	2,095,458
Commitments and contingencies (See Note 20)
Redeemable limited partnership units at redemption value; 823,983 and 981,634 issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	11,140	11,566
Brandywine Operating Partnership, L.P.'s equity:
General Partnership Capital; 171,126,257 and 170,572,964 units issued and outstanding as of December 31, 2021 and December 31, 2020, respectively	1,689,611	1,800,945
Accumulated other comprehensive loss	(2,366)	(7,935)
Total Brandywine Operating Partnership, L.P.'s equity	1,687,245	1,793,010
Noncontrolling interest - consolidated real estate ventures	2,834	72
Total partners' equity	1,690,079	1,793,082
Total liabilities and partners' equity	$ 3,846,196	$ 3,900,106

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CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued rent receivable, allowance	$ 4,133	$ 5,086
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Accrued rent receivable, allowance	$ 4,133	$ 5,086
Redeemable limited partnership units issued (in units)	823,983	981,634
Redeemable limited partnership units outstanding (in units)	823,983	981,634
Common stock, shares, outstanding (in shares)	171,126,257	170,572,964
Common stock, shares, issued (in shares)	171,126,257	170,572,964

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CONSOLIDATED STATEMENTS OF OPERATIONS - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue
Total revenue	$ 486,819	$ 534,852	$ 580,417
Operating expenses
Property operating expenses	121,890	132,172	154,361
Real estate taxes	53,621	63,032	62,237
Third party management expenses	12,800	10,252	9,248
Depreciation and amortization	178,105	188,283	210,005
General and administrative expenses	30,153	30,288	32,156
Total operating expenses	396,569	424,027	468,007
Gain on sale of real estate
Net gain on disposition of real estate	142	289,461	356
Net gain on sale of undepreciated real estate	2,903	201	2,020
Total gain on sale of real estate	3,045	289,662	2,376
Operating income	93,295	400,487	114,786
Other income (expense):
Interest and investment income	8,295	1,939	2,318
Interest expense	(62,617)	(73,911)	(81,512)
Interest expense - amortization of deferred financing costs	(2,836)	(2,904)	(2,768)
Equity in income (loss) of real estate venture	(26,697)	(18,584)	(9,922)
Net gain on real estate venture transactions	2,973	75	11,639
Net income before income taxes	12,413	307,102	34,541
Income tax (provision) benefit	(47)	224	(12)
Net income	12,366	307,326	34,529
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)	(410)	(396)
Net income attributable to Common Shareholders/ Unitholders of Brandywine Realty Trust	$ 11,868	$ 305,117	$ 33,871
Basic income per Common Partnership Unit (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Diluted income per Common Partnership Unit (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Basic weighted average common partnership units outstanding (in shares)	170,878,185	171,926,079	176,132,941
Diluted weighted average common partnership units outstanding (in shares)	172,273,240	172,317,076	176,686,813
Rents
Revenue
Total revenue	$ 451,519	$ 513,504	$ 554,665
Third party management fees, labor reimbursement and leasing
Revenue
Total revenue	26,444	18,580	19,626
Other
Revenue
Total revenue	8,856	2,768	6,126
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Revenue
Total revenue	486,819	534,852	580,417
Operating expenses
Property operating expenses	121,890	132,172	154,361
Real estate taxes	53,621	63,032	62,237
Third party management expenses	12,800	10,252	9,248
Depreciation and amortization	178,105	188,283	210,005
General and administrative expenses	30,153	30,288	32,156
Total operating expenses	396,569	424,027	468,007
Gain on sale of real estate
Net gain on disposition of real estate	142	289,461	356
Net gain on sale of undepreciated real estate	2,903	201	2,020
Total gain on sale of real estate	3,045	289,662	2,376
Operating income	93,295	400,487	114,786
Other income (expense):
Interest and investment income	8,295	1,939	2,318
Interest expense	(62,617)	(73,911)	(81,512)
Interest expense - amortization of deferred financing costs	(2,836)	(2,904)	(2,768)
Equity in income (loss) of real estate venture	(26,697)	(18,584)	(9,922)
Net gain on real estate venture transactions	2,973	75	11,639
Net income before income taxes	12,413	307,102	34,541
Income tax (provision) benefit	(47)	224	(12)
Net income	12,366	307,326	34,529
Net (income) loss attributable to noncontrolling interests - consolidated real estate ventures	3	(20)	(69)
Net income attributable to Brandywine Operating Partnership	12,369	307,306	34,460
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)	(410)	(396)
Net income attributable to Common Shareholders/ Unitholders of Brandywine Realty Trust	$ 11,948	$ 306,896	$ 34,064
Basic income per Common Partnership Unit (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Diluted income per Common Partnership Unit (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Basic weighted average common partnership units outstanding (in shares)	171,770,843	172,907,713	177,114,932
Diluted weighted average common partnership units outstanding (in shares)	173,165,898	173,298,710	177,668,804
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Rents
Revenue
Total revenue	$ 451,519	$ 513,504	$ 554,665
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Third party management fees, labor reimbursement and leasing
Revenue
Total revenue	26,444	18,580	19,626
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Other
Revenue
Total revenue	$ 8,856	$ 2,768	$ 6,126

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net income		$ 12,366	$ 307,326	$ 34,529
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments		4,817	(5,972)	(8,210)
Amortization of interest rate contracts	[1]	752	752	770
Total comprehensive income (loss)		5,569	(5,220)	(7,440)
Comprehensive income		17,935	302,106	27,089
Comprehensive (income) loss attributable to noncontrolling interest - consolidated real estate ventures		(105)	(1,770)	(221)
Comprehensive income attributable to Brandywine Realty Trust/Brandywine Operating Partnership		17,830	300,336	26,868
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Net income		12,366	307,326	34,529
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments		4,817	(5,972)	(8,210)
Amortization of interest rate contracts	[1]	752	752	770
Total comprehensive income (loss)		5,569	(5,220)	(7,440)
Comprehensive income		17,935	302,106	27,089
Comprehensive (income) loss attributable to noncontrolling interest - consolidated real estate ventures		3	(20)	(69)
Comprehensive income attributable to Brandywine Realty Trust/Brandywine Operating Partnership		$ 17,938	$ 302,086	$ 27,020

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

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CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY - USD ($) $ in Thousands	Total	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest - Consolidated Real Estate Ventures	BRANDYWINE OPERATING PARTNERSHIP, L.P.	BRANDYWINE OPERATING PARTNERSHIP, L.P. Cumulative Effect, Period of Adoption, Adjustment	BRANDYWINE OPERATING PARTNERSHIP, L.P. Accumulated Other Comprehensive Income (Loss)	BRANDYWINE OPERATING PARTNERSHIP, L.P. Noncontrolling Interest - Consolidated Real Estate Ventures	BRANDYWINE OPERATING PARTNERSHIP, L.P. General Partner Capital	BRANDYWINE OPERATING PARTNERSHIP, L.P. General Partner Capital Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2018								176,873,324
Partners' Equity, beginning balance at Dec. 31, 2018				$ 1,798,508	$ (5,336)	$ 4,725	$ 2,192	$ 1,791,591	$ (5,336)
Net income	$ 34,529		$ 262	34,529			69	$ 34,460
Other comprehensive loss	(7,440)	$ (7,399)	(41)	(7,440)		(7,440)
Deferred compensation obligation (in shares)								97,485
Deferred compensation obligation	0
Conversion of LP Units to common shares (in shares)								1,245
Conversion of LP Units to common shares				16				$ 16
Repurchase and retirement of LP units (in shares)								(1,337,169)
Repurchase and retirement of LP units				(17,297)				$ (17,297)
Issuance of partnership interest in consolidated real estate venture	27		27	27			27
Share-based compensation activity (in shares)								845,210
Share-based compensation activity	10,027			10,027				$ 10,027
Purchase of partnership interest in consolidated real estate venture	(2,180)		(1,197)				(1,197)	(983)
Adjustment of redeemable partnership units to liquidation value at period end				(3,615)				(3,615)
Distributions declared to general partnership unitholders				(134,324)				$ (134,324)
Ending balance (in shares) at Dec. 31, 2019								176,480,095
Partners' Equity, ending balance at Dec. 31, 2019				1,672,915		(2,715)	1,091	$ 1,674,539
Net income	307,326		1,799	307,326			20	$ 307,306
Other comprehensive loss	(5,220)	(5,191)	(29)	(5,220)		(5,220)
Deferred compensation obligation (in shares)								32,256
Deferred compensation obligation	(206)			(206)				$ (206)
Repurchase and retirement of LP units (in shares)								(6,248,483)
Repurchase and retirement of LP units				(59,999)				$ (59,999)
Distributions from consolidated real estate venture	(22)		(22)	(22)			(22)
Share-based compensation activity (in shares)								309,096
Share-based compensation activity	6,236			6,236				$ 6,236
Sale of partnership interest to consolidated real estate venture	(1,017)		(1,017)
Adjustment of redeemable partnership units to liquidation value at period end				3,074				3,074
Distributions declared to general partnership unitholders				(130,005)				$ (130,005)
Ending balance (in shares) at Dec. 31, 2020								170,572,964
Partners' Equity, ending balance at Dec. 31, 2020				1,793,082		(7,935)	72	$ 1,800,945
Net income	12,366		77	12,366			(3)	$ 12,369
Other comprehensive loss	5,569	$ 5,541	28	5,569		5,569
Deferred compensation obligation (in shares)								(18,058)
Deferred compensation obligation	(198)			(198)				$ (198)
Units issued to acquire noncontrolling interest (in units)								226,695
Partners' Capital Account, Acquisitions				3,052				$ 3,052
Repurchase and retirement of LP units				(2,334)				$ (2,334)
Issuance of partnership interest in consolidated real estate venture	2,765		$ 2,765	2,765			2,765
Share-based compensation activity (in shares)								344,656
Share-based compensation activity	$ 6,354			6,354				$ 6,354
Adjustment of redeemable partnership units to liquidation value at period end				(232)				(232)
Distributions declared to general partnership unitholders				(130,345)				$ (130,345)
Ending balance (in shares) at Dec. 31, 2021								171,126,257
Partners' Equity, ending balance at Dec. 31, 2021				$ 1,690,079		$ (2,366)	$ 2,834	$ 1,689,611

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CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Distributions to general partnership unitholders (in dollars per share)	$ 0.76	$ 0.76	$ 0.76

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CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 12,366	$ 307,326	$ 34,529
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	178,105	188,283	210,005
Amortization of deferred financing costs	2,836	2,904	2,768
Amortization of debt discount/(premium), net	(1,951)	(568)	189
Amortization of stock compensation costs	7,130	6,627	6,876
Straight-line rent income	(13,485)	(14,743)	(11,369)
Amortization of acquired above (below) market leases, net	(5,377)	(4,867)	(8,857)
Ground rent expense	918	1,455	1,470
Provision for doubtful accounts	0	1,049	(1,345)
Net gain on real estate venture transactions	(2,973)	(75)	(11,639)
Net gain on sale of interests in real estate	(3,045)	(289,662)	(2,376)
Loss from unconsolidated real estate ventures, net of distributions	26,697	18,584	10,242
Income tax provision (benefit)	47	(224)	12
Changes in assets and liabilities:
Accounts receivable	2,506	(2,031)	(248)
Other assets	(19,325)	(5,034)	9,368
Accounts payable and accrued expenses	2,974	14,374	(5,599)
Deferred income, gains and rent	2,986	(12,149)	9,319
Other liabilities	465	14,557	(9,115)
Net cash provided by operating activities	190,874	225,806	234,230
Cash flows from investing activities:
Acquisition of properties	0	(41,950)	0
Acquisition of partners interest in consolidated real estate venture	0	0	(2,181)
Proceeds from the sale of properties	10,303	278,114	41,795
Proceeds from real estate venture sales	0	0	9,730
Proceeds from insurance	1,250	0	0
Proceeds from note receivable	50,000	0	0
Issuance of note receivable	0	(50,000)	0
Proceeds from repayment of mortgage notes receivable	0	0	3,341
Capital expenditures for tenant improvements	(56,830)	(73,166)	(67,258)
Capital expenditures for redevelopments	(48,022)	(21,664)	(53,846)
Capital expenditures for developments	(30,269)	(65,420)	(77,192)
Advances for the purchase of tenant assets, net of repayments	270	1,488	(1,035)
Investment in unconsolidated real estate ventures	(31,643)	(719)	(253)
Deposits for real estate	(2,550)	0	(4,181)
Capital distributions from unconsolidated real estate ventures	27,028	9,001	35,906
Leasing costs paid	(19,852)	(17,394)	(15,485)
Net cash provided by (used in) investing activities	(100,315)	18,290	(130,659)
Cash flows from financing activities:
Repayments of mortgage notes payable	0	(94,993)	(7,595)
Proceeds from credit facility borrowings	154,000	318,000	348,500
Repayments of credit facility borrowings	(131,000)	(318,000)	(441,000)
Proceeds from unsecured notes	0	0	216,373
Debt financing costs paid	0	0	(1,965)
Shares used for employee taxes upon vesting of share awards	(1,762)	(1,346)	(1,554)
Partner contributions to consolidated real estate venture	2,765	0	27
Repurchase and retirement of common shares	0	(60,000)	(17,282)
Redemption of limited partnership units	(2,334)	0	0
Distributions paid to preferred and common partnership units	(130,255)	(131,150)	(134,140)
Net cash used in financing activities	(109,336)	(288,189)	(35,612)
Increase/(Decrease) in cash and cash equivalents and restricted cash	(18,777)	(44,093)	67,959
Cash and cash equivalents and restricted cash at beginning of year	47,077	91,170	23,211
Cash and cash equivalents and restricted cash at end of period	28,300	47,077	91,170
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	46,344	90,499	22,842
Restricted cash, beginning of period	733	671	369
Cash and cash equivalents, end of period	27,463	46,344	90,499
Restricted cash, end of period	837	733	671
Cash and cash equivalents and restricted cash	28,300	47,077	91,170
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the years ended December 31, 2021, 2020 and 2019 of $8,689, $4,650 and $2,246 respectively	72,391	79,498	66,508
Cash paid for income taxes	785	688	1,385
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid	32,765	32,706	33,815
Change in investment in real estate ventures as a result of deconsolidation	32,761	0	1,806
Change in operating real estate from deconsolidation of operating properties	(30,073)	427,710	0
Change in investment in real estate ventures from deconsolidation of operating properties	0	(296,262)	0
Change in mortgage notes payable from deconsolidation of operating properties	0	(220,271)	0
Change in other assets as a result of deconsolidation of operating properties	(2,688)	1,471	0
Change in capital expenditures financed through accounts payable at period end	22,744	(9,949)	(10,618)
Change in capital expenditures financed through retention payable at period end	(613)	284	(946)
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Cash flows from operating activities:
Net income	12,366	307,326	34,529
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	178,105	188,283	210,005
Amortization of deferred financing costs	2,836	2,904	2,768
Amortization of debt discount/(premium), net	(1,951)	(568)	189
Amortization of stock compensation costs	7,130	6,627	6,876
Straight-line rent income	(13,485)	(14,743)	(11,369)
Amortization of acquired above (below) market leases, net	(5,377)	(4,867)	(8,857)
Ground rent expense	918	1,455	1,470
Provision for doubtful accounts	0	1,049	(1,345)
Net gain on real estate venture transactions	(2,973)	(75)	(11,639)
Net gain on sale of interests in real estate	(3,045)	(289,662)	(2,376)
Loss from unconsolidated real estate ventures, net of distributions	26,697	18,584	10,242
Income tax provision (benefit)	47	(224)	12
Changes in assets and liabilities:
Accounts receivable	2,506	(2,031)	(248)
Other assets	(19,325)	(5,034)	9,368
Accounts payable and accrued expenses	2,974	14,374	(5,599)
Deferred income, gains and rent	2,986	(12,149)	9,319
Other liabilities	465	14,557	(9,115)
Net cash provided by operating activities	190,874	225,806	234,230
Cash flows from investing activities:
Acquisition of properties	0	(41,950)	0
Acquisition of partners interest in consolidated real estate venture	0	0	(2,181)
Proceeds from the sale of properties	10,303	278,114	41,795
Proceeds from real estate venture sales	0	0	9,730
Proceeds from insurance	1,250	0	0
Proceeds from note receivable	50,000	0	0
Issuance of note receivable	0	(50,000)	0
Proceeds from repayment of mortgage notes receivable	0	0	3,341
Capital expenditures for tenant improvements	(56,830)	(73,166)	(67,258)
Capital expenditures for redevelopments	(48,022)	(21,664)	(53,846)
Capital expenditures for developments	(30,269)	(65,420)	(77,192)
Advances for the purchase of tenant assets, net of repayments	270	1,488	(1,035)
Investment in unconsolidated real estate ventures	(31,643)	(719)	(253)
Deposits for real estate	(2,550)	0	(4,181)
Capital distributions from unconsolidated real estate ventures	27,028	9,001	35,906
Leasing costs paid	(19,852)	(17,394)	(15,485)
Net cash provided by (used in) investing activities	(100,315)	18,290	(130,659)
Cash flows from financing activities:
Repayments of mortgage notes payable	0	(94,993)	(7,595)
Proceeds from credit facility borrowings	154,000	318,000	348,500
Repayments of credit facility borrowings	(131,000)	(318,000)	(441,000)
Proceeds from unsecured notes	0	0	216,373
Debt financing costs paid	0	0	(1,965)
Exercise of stock options, net	(63)	47	3,771
Shares used for employee taxes upon vesting of share awards	(1,762)	(1,346)	(1,554)
Partner contributions to consolidated real estate venture	2,765	0	27
Repurchase and retirement of common shares	0	(60,000)	(17,282)
Redemption of limited partnership units	(2,334)	0	0
Distributions paid to preferred and common partnership units	(130,942)	(131,897)	(134,887)
Net cash used in financing activities	(109,336)	(288,189)	(35,612)
Increase/(Decrease) in cash and cash equivalents and restricted cash	(18,777)	(44,093)	67,959
Cash and cash equivalents and restricted cash at beginning of year	47,077	91,170	23,211
Cash and cash equivalents and restricted cash at end of period	28,300	47,077	91,170
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period	46,344	90,499	22,842
Restricted cash, beginning of period	733	671	369
Cash and cash equivalents, end of period	27,463	46,344	90,499
Restricted cash, end of period	837	733	671
Cash and cash equivalents and restricted cash	28,300	47,077	91,170
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the years ended December 31, 2021, 2020 and 2019 of $8,689, $4,650 and $2,246 respectively	72,391	79,498	66,508
Cash paid for income taxes	785	688	1,385
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid	32,765	32,706	33,815
Change in investment in real estate ventures as a result of deconsolidation	32,761	0	1,806
Change in operating real estate from deconsolidation of operating properties	(30,073)	427,710	0
Change in investment in real estate ventures from deconsolidation of operating properties	0	(296,262)	0
Change in mortgage notes payable from deconsolidation of operating properties	0	(220,271)	0
Change in other assets as a result of deconsolidation of operating properties	(2,688)	1,471	0
Change in capital expenditures financed through accounts payable at period end	22,744	(9,949)	(10,618)
Change in capital expenditures financed through retention payable at period end	$ (613)	$ 284	$ (946)

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CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Capitalized interest	$ 8,689	$ 4,650	$ 2,246
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Capitalized interest	$ 8,689	$ 4,650	$ 2,246

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ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP

1. ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP

Brandywine Realty Trust (the "Parent Company") is a self-administered and self-managed real estate investment trust (“REIT”) engaged in the acquisition, development, redevelopment, ownership, management, and operation of a portfolio of office and mixed-use properties. The Parent Company owns its assets and conducts its operations through Brandywine Operating Partnership, L.P. (the "Operating Partnership") and subsidiaries of the Operating Partnership. The Parent Company is the sole general partner of the Operating Partnership and, as of December 31, 2021, owned a 99.5% interest in the Operating Partnership. The Parent Company’s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol “BDN.” The Parent Company, the Operating Partnership, and their consolidated subsidiaries are collectively referred to as the "Company."

As of December 31, 2021, the Company owned 81 properties that contained an aggregate of approximately 13.7 million net rentable square feet (collectively, the “Properties”). The Company’s core portfolio of operating properties (the “Core Properties”) excludes development properties, redevelopment properties, and properties held for sale. The Properties were comprised of the following as of December 31, 2021:

	Number of Properties	Rentable Square Feet
Office properties	72	12,097,300
Mixed-use properties	5	942,334
Core Properties	77	13,039,634
Development property	1	205,803
Redevelopment properties	3	432,699
The Properties	81	13,678,136

In addition to the Properties, as of December 31, 2021, the Company owned 176.1 acres of land held for development, of which 10.0 acres were held for sale. The Company also held a leasehold interest in one land parcel totaling 0.8 acres, acquired through a prepaid 99-year ground lease, and held options to purchase approximately 55.5 additional acres of undeveloped land. As of December 31, 2021, the total potential development that this inventory of land could support under current zoning and entitlements, including the parcels under option, amounted to an estimated 13.4 million square feet, of which 0.1 million square feet relates to the 10.0 acres held for sale. 

As of December 31, 2021, the Company also owned economic interests in nine unconsolidated real estate ventures (see Note 4, ''Investment in Unconsolidated Real Estate Ventures” for further information). The Properties and the properties owned by the unconsolidated real estate ventures are primarily located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. 

All references to building square footage, rentable square feet, acres, occupancy percentage, the number of buildings, and tax basis are unaudited.

The Company conducts its third-party real estate management services business primarily through seven management companies (collectively, the “Management Companies”): Brandywine Realty Services Corporation (“BRSCO”), BDN Management Inc. (“BMI”), Brandywine Properties I Limited, Inc. (“BPI”), BDN Brokerage, LLC (“BBL”), Brandywine Properties Management, L.P. (“BPM”), Brandywine Brokerage Services, LLC (“BBS”), and BDN GC Services LLC ("BGCS"). Each of BRSCO, BMI and BPI is a taxable REIT subsidiary. BBS, BBL, BPM, and BGCS are tax disregarded entities wholly owned by the taxable REIT subsidiary entities. As of December 31, 2021, the Operating Partnership owned, directly and indirectly, 100% of each of BRSCO, BMI, BPI, BBL, BPM, BBS, and BGCS. As of December 31, 2021, the Management Company subsidiaries were managing properties containing an aggregate of approximately 23.1 million net rentable square feet, of which approximately 13.7 million net rentable square feet related to Properties owned by the Company and approximately 9.4 million net rentable square feet related to properties owned by third parties and unconsolidated real estate ventures.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Change in Depreciable Lives of Real Estate Investments

In accordance with its policy, the Company reviews the estimated useful lives of its real estate investments on an ongoing basis. The estimated useful lives of seven operating properties in Austin, Texas were modified to reflect the estimated periods during which these assets will remain in service pursuant to the Company's Uptown ATX master development plans. The estimated useful lives of these properties were decreased from approximately 35 years to approximately 12 years coinciding with the remaining terms of in-place leases. The effect of this change in estimate was a $9.8 million increase in depreciation expense during the year ended December 31, 2021.

Principles of Consolidation

The Company consolidates variable interest entities (“VIEs”) in which it is considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct those matters that most significantly impact the activities of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. For entities that the Company has the obligations to fund losses, its maximum exposure to loss is not limited to the carrying amount of its investments.

The Company continuously assesses its determination of the primary beneficiary for each entity and assesses reconsideration events that may cause a change in the original determinations. 

As of December 31, 2021 and 2020, the Company included in its consolidated balance sheets consolidated VIEs having total assets of $46.5 million and $49.2 million, respectively, and total liabilities of $21.0 million and $21.6 million, respectively.

When an entity is not deemed to be a VIE, the Company consolidates entities for which it has significant decision making control over the entity’s operations. The Company’s judgment with respect to its level of influence or control of an entity involves consideration of various factors including the form of the Company’s ownership interest, its representation in the entity’s governance, the size of its investment (including loans), estimates of future cash flows, its ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to replace the Company as manager and/or liquidate the venture, if applicable. The Company’s assessment of its influence or control over an entity affects the presentation of these investments in the Company’s consolidated financial statements. In addition to evaluating control rights, the Company consolidates entities in which the outside partner has no substantive kick-out rights to remove the Company as managing member. The portion of the consolidated entities that are not owned by the Company is presented as noncontrolling interest as of and during the periods consolidated. All intercompany transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("US GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Operating Properties

Operating properties are carried at historical cost less accumulated depreciation and impairment losses. The value of operating properties reflects their purchase price or development cost. Acquisition costs related to business combinations are expensed as incurred, whereas the costs related to asset acquisitions are capitalized as incurred. Costs incurred for the renovation and betterment of an operating property are capitalized to the Company’s investment in that property. Ordinary repairs and maintenance are expensed as incurred.

Purchase Price Allocation

For acquisitions of real estate or in-substance real estate that are accounted for as business combinations, we recognize the assets acquired (including the intangible value of acquired above- or below-market leases, acquired in-place leases and tenant relationship values), liabilities assumed, noncontrolling interests, and previously existing ownership interests at fair value as of the acquisition date. Any excess (deficit) of the consideration transferred relative to the fair value of the net assets acquired is accounted for as goodwill (bargain purchase gain). Acquisition costs related to business combinations are expensed as incurred.

Acquisitions of real estate and in-substance real estate that do not meet the definition of a business are accounted for as asset acquisitions. The Company generally expects that acquisitions of real estate or in-substance real estate will not meet the definition of business and therefore are accounted for as asset acquisitions, unless specifically noted otherwise. The accounting model for asset acquisitions is similar to the accounting model for business combinations except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in recognition of goodwill or a bargain purchase gain. Additionally, because the accounting model for asset acquisitions is a cost accumulation model, preexisting interests in the acquired assets, if any, are not remeasured to fair value but continue to be accounted for at their historical cost. Direct acquisition costs are capitalized if an asset acquisition is probable. If we determine that an asset acquisition is no longer probable, no new costs are capitalized and all capitalized costs that are not recoverable are written off.

The purchase price is allocated to the acquired assets and assumed liabilities, including land and buildings, as if vacant based on highest and best use for the acquired assets. The Company assesses and considers fair value of the operating properties based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

The Company allocates the purchase price of properties considered to be business combinations and asset acquisitions to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Company’s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancellable term of the lease (including the below market fixed renewal periods that are considered probable, if applicable). Capitalized above-market lease values are amortized as a reduction of rental income over the remaining noncancellable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining noncancellable terms of the respective leases, including any below market fixed-rate renewal option periods that are considered probable.

Other intangible assets also include in-place leases based on the Company’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods. Factors considered by the Company in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance, and other operating expenses, and estimates of lost rents at market rates during the expected lease-up periods, which primarily range from four to twelve months. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing, and leasing activities in estimating the fair value of the tangible and intangible assets acquired. The Company also uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of the accounting standard governing asset retirement obligations and when necessary, will record a conditional asset retirement obligation as part of its purchase price. The Company also evaluates tenant relationships on a tenant-specific basis. On most of the Company’s acquisitions, this intangible has not been material and, as a result, no value has been assigned.

In the event that a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values and tenant relationship values, is charged to expense and market rate adjustments (above or below) are recorded to revenue.

Depreciation and Amortization

The costs of buildings and improvements are depreciated using the straight-line method based on the following useful lives: buildings and improvements (5 to 55 years) and tenant improvements (the shorter of (i) the life of the asset (1 to 16 years) or (ii) the lease term).

Construction-in-Progress

Project costs directly associated with the development or redevelopment and construction of a real estate project are capitalized as construction-in-progress. Construction-in-progress also includes costs related to ongoing tenant improvement projects. In addition, interest, real estate taxes, and other expenses that are directly associated with the Company’s development or redevelopment activities are capitalized beginning when activities necessary to ready the asset for its intended use are in progress and capital expenditures have been made and ending when the property is placed in service. Interest expense is capitalized using the Company’s weighted average interest rate. Internal direct costs are capitalized to projects in which qualifying expenditures are being incurred. See Note 3, ''Real Estate Investments," for more information related to the capitalization of project costs.

Ground Leases

The Company is the lessee under long-term ground leases classified as operating leases. The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilizes a market-based approach to estimate the IBR for each individual lease. The base IBR is estimated utilizing observable mortgage and corporate bond rates, which are then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease.

The right of use assets and lease liabilities are presented as “Right of use asset - operating leases, net” and “Lease liability - operating leases”, respectively, on the consolidated balance sheet as of December 31, 2021 and 2020, respectively. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations.

The most recent CPI adjustment is used to determine the present value of the lease payments for an indexed lease and ultimately the right of use asset and corresponding lease liability. Rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs.

Impairment of Real Estate Investments

The Company reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company updates leasing and other assumptions regularly, paying particular attention to real estate investments where there is an event or change in circumstances that indicates an impairment in value. Additionally, the Company considers strategic decisions regarding the future development plans for real estate investment under development and other market factors. For real estate investments to be held and used, the Company analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets over, in most cases, a 10-year hold period. If there is significant possibility that the Company will dispose of assets earlier, it analyzes the recoverability using a probability weighted analysis of the undiscounted future cash flows expected to be generated from the operations and eventual disposition of each asset using various probable hold periods. If the recoverability analysis indicates that the carrying value of the tested real estate investment is not recoverable, the real estate investment is written down to its fair value and an impairment is recognized in the amount of the excess of the carrying amount of the asset over its fair value. If and when the Company’s plans change, it revises its recoverability analysis to use cash flows expected from operations and eventual disposition of each asset using hold periods that are consistent with its revised plans.

Estimated future cash flows used in such analysis are based on the Company’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to market rental rates, capitalization rates, and recent sales data for comparable real estate investments. Future cash flows are discounted when

determining fair value of an asset. Most of these assumptions are influenced by our direct experience with the real estate investments and their markets as well as market data obtained from real estate leasing and brokerage firms.

Assets Held for Sale

The Company generally reclassifies assets to held for sale when the transaction has been approved by its Board of Trustees, or by officers vested with authority to approve the transaction, and there are no known significant contingencies relating to the sale of the real estate investment within one year of the consideration date and the consummation of the transaction is otherwise considered probable. When a real estate investment is designated as held for sale, the Company stops depreciating the real estate investment and estimates the real estate investment’s fair value, net of selling costs. If the determination is made that the estimated fair value, net of selling costs, is less than the net carrying value of the real estate investment, an impairment is recognized, reducing the net carrying value of the real estate investment to estimated fair value less selling costs. For periods in which a real estate investment is classified as held for sale, the Company classifies the assets and liabilities, as applicable, of the real estate investment as held for sale on the consolidated balance sheet for such periods.

Impairment of Land Held for Development

When demand for build-to-suit properties declines and the ability to sell land held for development deteriorates, or other market factors indicate possible impairment in the recoverability of land held for development, it is reviewed for impairment by comparing its fair value to its carrying value. If the estimated sales value is less than the carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is generally determined using a market valuation approach, comparing the subject property to recent comparable market transactions in a similar location; or using estimated cash flows.

Cash and Cash Equivalents

Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company maintains cash equivalents in money market accounts with financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. The Company does not invest its available cash balances in money market funds. As such, available cash balances are appropriately reflected as cash and cash equivalents on the consolidated balance sheets.

Restricted Cash

Restricted cash consists of cash held as collateral to provide credit enhancement for the Company’s mortgage debt, cash for property taxes, capital expenditures and tenant improvements. Restricted cash also includes cash held by qualified intermediaries for possible investments in like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code in connection with sales of the Company’s properties. Restricted cash is included in “Other assets” in the consolidated balance sheets.

Accounts Receivable and Accrued Rent Receivable

Generally, leases with tenants are accounted for as operating leases. Minimum lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payment terms are recorded as “Accrued rent receivable, net” on the consolidated balance sheets. Included in current tenant receivables are tenant reimbursements which are comprised of amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses that are recognized as revenue in the period in which the related expenses are incurred.

Accrued rent receivables are carried net of the allowances for doubtful accounts. The allowance for doubtful accounts is an estimate based on the Company's experience of the probability of future events confirming a loss and represents the estimated probable losses. The allowance is generally calculated by assigning risk factors by industry which are primarily based on the Company's historical collection and charge-off experience adjusted for current market conditions, which requires management's judgment.

Investments in Unconsolidated Real Estate Ventures

Under the equity method, investments in real estate ventures are recorded initially at cost and subsequently adjusted for equity in earnings, contributions, distributions, and impairments. The Company generally allocates income and losses from the unconsolidated real estate ventures based on the venture's distribution priorities, which may be different from its stated ownership percentage. For real estate ventures that are constructing assets to commence planned principal operations, the Company capitalizes interest expense to the extent that it is recoverable using the Company’s weighted average interest rate of consolidated debt and its investment balance as a basis. Planned principal operations commence when a property is available to lease and at that point in time, the Company ceases capitalizing interest to its investment basis.

At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Company’s investments in real estate ventures. An investment is other than temporarily impaired only if the fair value of the investment in a real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. To the extent that an other than temporary impairment has occurred, an impairment charge is recorded in the amount of the excess of the carrying amount of the investment over the estimated fair value. Management is required to make significant judgments about the estimated fair value of its investments to determine if an impairment exists. Fair value is generally determined through income valuation approaches, including discounted cash flows and direct capitalization models.

When the Company acquires an interest in or contributes assets to a real estate venture project, the difference between the Company’s cost basis in the investment and the value of the real estate venture or asset contributed is amortized over the life of the related assets, intangibles, and liabilities and such adjustment is included in the Company’s share of equity in income of unconsolidated real estate ventures.

Deferred Costs

Certain costs incurred in connection with property leasing are capitalized as deferred leasing costs. Deferred leasing costs consist primarily of third-party and internal leasing commissions that are amortized using the straight-line method over the life of the respective lease which generally ranges from 1 to 16 years. Management re-evaluates the remaining useful lives of leasing costs in conjunction with changes in the respective lease term.

Notes Receivable

The Company accounts for notes receivable on its balance sheet at amortized cost, net of allowance for loan losses. Interest income is recognized over the term of the notes receivable and is calculated based on the contractual terms of each note agreement. At inception and on a quarterly basis, the Company evaluates notes receivable for the current estimate of expected credit losses over the contractual term using a probability-of-default method and reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses to reflect management's current estimate. Management considers performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor in its evaluation.

Notes receivable are placed on nonaccrual status when management determines, after considering economic and business conditions and collection efforts, that the loans are impaired, or collection of interest is doubtful. Uncollectible interest previously accrued is recognized as bad debt expense. Interest income on nonaccrual loans is recognized only to the extent that cash payments are received.

Deferred Financing Costs

Costs incurred in connection with debt financing are capitalized as a direct deduction from the carrying value of the debt, except for costs capitalized related to the Company’s unsecured credit facility, which are capitalized within the “Deferred costs, net” caption on the accompanying consolidated balance sheets. Deferred financing costs are charged to interest expense over the terms of the related debt agreements. Deferred financing costs consist primarily of loan fees which are amortized over the related loan term on a basis that approximates the effective interest method. Deferred financing costs are accelerated, when debt is extinguished, as part of the “Interest expense-amortization of deferred financing costs” caption within the Company’s consolidated statements of operations. Original issue discounts are recognized as part of the gain or loss on extinguishment of debt, as appropriate.

Revenue Recognition

Rental Revenue

The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. The operating leases have various expiration dates. As of December 31, 2021 and 2020, the Company did not have any leases classified as direct-financing or sales-type leases.

Fixed lease payments under tenant leases, determined to be collectible, are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based.

Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis.

The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded an improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term.

For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are generally recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term.

The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and included in the "Rents" caption within the Company's consolidated statements of operations.

Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract.

Point of Sale Revenue

Point of sale revenue consists of parking, restaurant, and flexible stay revenue from the Company’s hotel operations. Point of sale service obligations are performed daily, and the customer obtains control of those services simultaneously as they are performed. Accordingly, revenue is recorded on an accrual basis as it is earned, coinciding with the services that are provided to the Company’s customers. Parking and flexible stay revenue is recognized within rents and restaurant income is recognized within other income on the consolidated statements of operations.

Third party management fees, labor reimbursement, and leasing

The Company performs property management services for its managed real estate ventures and third-party property owners of real estate that consist of: (i) providing leasing services, (ii) property inspections, (iii) repairs and maintenance monitoring, and (iv) financial and accounting oversight. For these services, the Company earns management fees monthly, which are based on a fixed percentage of each managed property’s financial results, and is reimbursed for the labor costs incurred by its property management employees as services are rendered to the property owners. The Company determined that control over the services is passed to its customers simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to the Company’s customers.

Lease commissions are earned when the Company, as a broker for the third party property owner, executes a lease agreement with a tenant. Based on the terms of the Company’s lease commission contracts, the Company's performance obligation to the customer has been completed upon execution of each lease agreement. The Company’s lease commissions are earned based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component.

Development fee revenue is earned through two different sources: (i) the Company performs development services for third parties as an agent and earns fixed development fees based on a percentage of construction costs incurred over the construction period, and (ii) the Company acts as a general contractor on behalf of one of its managed real estate ventures. The Company acts as the principal construction company for the real estate ventures and records gross revenue as it provides construction services based on the quantifiable construction outputs.

In applying the cost based output method of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine its progress towards contract completion and to calculate the corresponding gross revenue and gross profit to recognize. For any costs that do not contribute to satisfying the Company’s performance obligations, it excludes such costs from its output methods of revenue recognition as the amounts are not reflective of transferring control of the outputs to the customer. The use of estimates in this calculation involves significant judgment.

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2021 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	149,441	$	113,748	$	62,545	$	12,410	$	8,020	$	(2,240)	$	343,924
Variable rent	41,585		10,358		34,850		646		2,660		(257)		89,842
Total lease revenue	191,026		124,106		97,395		13,056		10,680		(2,497)		433,766
Amortization of deferred market rents	2,064		(9)		3,322		—		—		—		5,377
Daily parking & hotel flexible stay	11,758		159		109		117		233		—		12,376
Total rents	204,848		124,256		100,826		13,173		10,913		(2,497)		451,519
Third party management fees, labor reimbursement and leasing	893		34		452		6,548		3,077		15,440		26,444
Other income	2,117		276		402		144		25		5,892		8,856
Total revenue	$	207,858	$	124,566	$	101,680	$	19,865	$	14,015	$	18,835	$	486,819

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2020 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	166,286	$	128,044	$	63,366	$	29,830	$	8,064	$	(2,412)	$	393,178
Variable rent	51,410		12,951		35,123		3,544		2,401		(1,343)		104,086
Total lease revenue	217,696		140,995		98,489		33,374		10,465		(3,755)		497,264
Amortization of deferred market rents	1,146		(12)		3,531		—		203		—		4,868
Daily parking & hotel flexible stay	10,777		179		49		135		232		—		11,372
Total rents	229,619		141,162		102,069		33,509		10,900		(3,755)		513,504
Third party management fees, labor reimbursement and leasing	927		39		689		6,541		2,560		7,824		18,580
Other income	1,482		412		224		173		9		468		2,768
Total revenue	$	232,028	$	141,613	$	102,982	$	40,223	$	13,469	$	4,537	$	534,852

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2019 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	178,481	$	125,969	$	62,232	$	39,420	$	7,834	$	(2,412)	$	411,524
Variable rent	58,580		14,282		34,748		4,029		3,080		(495)		114,224
Total lease revenue	237,061		140,251		96,980		43,449		10,914		(2,907)		525,748
Amortization of deferred market rents	3,745		(12)		4,638		—		486		—		8,857
Daily parking & hotel flexible stay	18,665		174		165		824		232		—		20,060
Total rents	259,471		140,413		101,783		44,273		11,632		(2,907)		554,665
Third party management fees, labor reimbursement and leasing	876		43		1,956		6,922		2,915		6,914		19,626
Other income	3,422		628		418		303		11		1,344		6,126
Total revenue	$	263,769	$	141,084	$	104,157	$	51,498	$	14,558	$	5,351	$	580,417

(a)Corporate includes intercompany eliminations necessary to reconcile to consolidated Company totals.

Income Taxes

Parent Company

The Parent Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to continue to qualify as a REIT, the Parent Company is required to, among other things, distribute at least 90% of its annual REIT taxable income to its shareholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Parent Company is not subject to federal and state (in states that follow federal rules) income taxes with respect to the portion of its income that meets certain criteria and is distributed annually to its shareholders. Accordingly, a nominal provision for federal and state (as applicable) income taxes is included in the accompanying consolidated financial statements with respect to the operations of the Parent Company. The Parent Company intends to continue to operate in a manner that allows it to meet the requirements for taxation as a REIT. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state (as applicable) income taxes and may not be able to qualify as a REIT for the four tax years following the year in which it first failed to qualify. The Parent Company is subject to certain local income taxes. Provision for federal income taxes is recorded in the income tax provision line item and state and local income taxes have been included in operating expenses in the Parent Company’s consolidated statements of operations.

The tax basis of the Parent Company’s assets was $3.1 billion and $2.9 billion for the years ended December 31, 2021 and December 31, 2020, respectively.

The Parent Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Parent Company’s ordinary income and (b) 95% of the Parent Company’s net capital gain exceeds cash distributions and certain taxes paid by the Parent Company. No excise tax was incurred in 2021, 2020 or 2019.

The Parent Company has elected to treat several of its subsidiaries as taxable REIT subsidiaries (each a “TRS”). A TRS is subject to federal, state and local income tax. In general, a TRS may perform non-customary services for tenants, hold assets that the Parent Company, as a REIT, cannot hold directly and generally may engage in any real estate or non-real estate related business. The Company’s taxable REIT subsidiaries did not have material tax provisions or deferred income tax items as of December 31, 2021 and December 31, 2020.

Operating Partnership

In general, the Operating Partnership is not subject to federal and state income taxes, and accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. The partners of the Operating Partnership are required to include their respective share of the Operating Partnership’s profits or losses in their respective tax returns. The Operating Partnership’s tax returns and the amount of allocable partnership profits and losses are subject to examination by federal and state taxing authorities. For any year beginning on or after January 1, 2017, the Operating Partnership can be assessed with federal income tax in the course of an audit by the IRS. Under the partnership audit rules included in the Bipartisan Budget Act of 2015, the Operating Partnership has the option to make a push-out election and allocate the partnership adjustments to all the former partners for the tax year under audit.

The tax basis of the Operating Partnership’s assets was $3.1 billion and $2.9 billion for the years ended December 31, 2021 and December 31, 2020, respectively.

The Operating Partnership may elect to treat a subsidiary REIT under Sections 856 through 860 of the Code, if applicable. Each subsidiary REIT would be required to meet the requirements for treatment as a REIT under Sections 856 through 860 of the Code. If a subsidiary REIT fails to qualify as a REIT in any taxable year, that subsidiary REIT would be subject to federal and state income taxes and would not be able to qualify as a REIT for the four subsequent taxable years. Also, each subsidiary REIT would be subject to certain local income taxes.

The Operating Partnership has elected to treat several of its subsidiaries as TRSs, which are subject to federal, state and local income tax.

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders, as adjusted for unallocated earnings, if any, of certain securities, by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur from common shares issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options, and conversion of the noncontrolling interests in the Operating Partnership. Anti-dilutive shares are excluded from the calculation.

Earnings Per Unit

Basic earnings per unit is computed by dividing net income available to common unitholders, as adjusted for unallocated earnings, if any, of certain securities issued by the Operating Partnership, by the weighted average number of common unit equivalents outstanding during the year. Diluted earnings per unit reflects the potential dilution that could occur from units issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options. Anti-dilutive units are excluded from the calculation.

Share-Based Compensation Plans

The Parent Company maintains a shareholder-approved equity-incentive plan known as the Amended and Restated 1997 Long-Term Incentive Plan (the “1997 Plan”). The 1997 Plan is administered by the Compensation Committee of the Parent Company’s Board of Trustees. Under the 1997 Plan, the Compensation Committee is authorized to award equity and equity-based awards, including incentive stock options, non-qualified stock options, restricted share rights and performance-based share units. The Company's share-based employee compensation plan is described more fully in Note 15, ''Share Based Compensation, 401(k) Plan and Deferred Compensation."

Comprehensive Income

Comprehensive income is recorded in accordance with the provisions of the accounting standard for comprehensive income. The accounting standard establishes standards for reporting comprehensive income and its components in the financial statements. Comprehensive income includes the effective portions of changes in the fair value of derivatives.

Accounting for Derivative Instruments and Hedging Activities

The Company accounts for its derivative instruments and hedging activities in accordance with the accounting standard for derivative and hedging activities. The accounting standard requires the Company to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them on the balance sheet as either an asset or liability. See disclosures below related to the accounting standard for fair value measurements and disclosures.

For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income while the ineffective portions are recognized in earnings.

The Company actively manages its ratio of fixed-to-floating rate debt. To manage its fixed and floating rate debt in a cost-effective manner, the Company, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts.

Fair Value Measurements

The Company estimates the fair value of its derivatives in accordance with the accounting standard for fair value measurements and disclosures. The accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access;

•Level 2 inputs are inputs, other than quoted prices included in Level 1, which are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and

•Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little if any, related market activity or information.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Non-financial assets and liabilities recorded at fair value on a non-recurring basis include non-financial assets and liabilities measured at fair value in a purchase price allocation and the impairment. The fair values assigned to the Company's purchase price allocations primarily utilize Level 3 inputs. The fair value assigned to the long-lived assets and equity method investments for which there was impairment recorded utilize Level 3 inputs.

Risks and Uncertainties - COVID-19

Currently, one of the most significant risks and uncertainties the Company faces is the potential adverse effect of the ongoing global COVID-19 pandemic, which has significantly slowed global economic activity and caused significant volatility in financial markets, causing many to fear a global recession. The responses of many countries, including the U.S., have included mandatory quarantines, restrictions on business activities, including construction activities, restrictions on group gatherings, restrictions on travel and mandatory closures. These actions have disrupted the global economy and supply chains and adversely impacted many industries, including owners and developers of real estate. Moreover, there is significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. economy and consumer confidence. Demand for space at the Company's properties is dependent on a variety of macroeconomic factors, such as employment levels, interest rates, changes in stock market valuations, rent levels and availability of competing space. The extent to which the COVID-19 pandemic impacts the Company's results will depend on

future developments, many of which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, future action plans, and vaccination efforts. The COVID-19 pandemic has caused continued negative economic impacts, market volatility, and business disruption, which could negatively impact the Company's tenants’ ability to pay rent, the Company's ability to lease vacant space, and the Company's ability to complete development and redevelopment projects. These consequences, in turn, could materially impact the Company's results of operations.

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur.

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REAL ESTATE INVESTMENTS

12 Months Ended

Dec. 31, 2021

Real Estate [Abstract]

REAL ESTATE INVESTMENTS

3. REAL ESTATE INVESTMENTS

As of December 31, 2021 and 2020, the gross carrying value of the operating properties was as follows (in thousands):

	December 31, 2021		December 31, 2020
Land	$	410,144	$	407,514
Building and improvements	2,653,492		2,665,232
Tenant improvements	408,966		401,363
Total	$	3,472,602	$	3,474,109

Construction-in-Progress

Internal direct construction costs totaling $7.9 million in 2021, $8.4 million in 2020, and $7.4 million in 2019 and interest totaling $7.0 million in 2021, $4.6 million in 2020, and $3.2 million in 2019 were capitalized related to the development, redevelopment and construction of tenant improvements of certain properties and land holdings.

During the years ended December 31, 2021, 2020 and 2019, the Company’s internal direct construction costs are comprised entirely of capitalized salaries. The following table shows the amount of compensation costs (including bonuses and benefits) capitalized for the years presented (in thousands):

	December 31,
	2021		2020		2019
Development	$	4,815	$	4,802	$	3,047
Redevelopment	1,170		543		775
Tenant Improvements	1,917		3,021		3,609
Total	$	7,902	$	8,366	$	7,431

2021 Acquisitions

During the year ended December 31, 2021, the Company did not acquire any properties from a third party.

2020 Acquisitions

The following table summarizes the property acquisitions during the year ended December 31, 2020 (dollars in thousands):

Property/Portfolio Name	Acquisition Date	Location	Property Type	Rentable Square Feet/Acres	Purchase Price (a)
145 King of Prussia Road	February 27, 2020	Radnor, PA	Land	7.75 acres	$	11,250
1505-11 Race Street	November 5, 2020	Philadelphia, PA	Office	119,763	$	9,700
250 King of Prussia Road (b)	November 30, 2020	Radnor, PA	Office	169,843	$	20,250

(a)Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties.

(b)This property was placed into redevelopment and is therefore included within Construction-in-progress on the consolidated balance sheets.

The Company accounted for the acquisition of 1501-11 Race Street as an asset acquisition and therefore capitalized $0.3 million of acquisition related costs. The Company utilized a number of sources in making estimates of fair value (including comparative sales transactions and market leasing assumptions) for purposes of allocating the purchase price to tangible and intangible assets acquired The acquisition values have been allocated as follows (in thousands):

	1505-11 Race Street
Building, land and improvements	$	9,723
Intangible assets acquired	2,422
Below market lease liabilities assumed	(2,193)
Total unencumbered acquisition value	9,952
Amortization period of intangible assets	1.5 years
Amortization period of below market liabilities assumed	1.5 years

2019 Acquisitions

During the year ended December 31, 2019, the Company did not acquire any properties from a third party.

Dispositions

The following table summarizes the property dispositions during the years ended December 31, 2021, 2020 and 2019 (dollars in thousands):

Property/Portfolio Name	Disposition Date	Location	Property Type	Rentable Square Feet/Acres	Sales Price		Gain/(Loss) on Sale (a)
1100 Lenox Drive	September 8, 2021	Lawrenceville, NJ	Land	5.0 acres	$	2,575	$	68
2100-2200 Lenox Drive	July 6, 2021	Lawrenceville, NJ	Land	35.2 acres	$	8,900	$	842
Mid-Atlantic Office Portfolio (b) (d)	December 21, 2020	Various	Office	1,128,645	$	192,943	$	15,164
One and Two Commerce Square (c)	July 21, 2020	Philadelphia, PA	Office	1,896,142	$	115,000	$	271,905
Keith Valley	June 15, 2020	Horsham, PA	Land	14.0 Acres	$	4,000	$	201
52 East Swedesford Road	March 19, 2020	Malvern, PA	Office	131,077	$	18,000	$	2,336
1900 Gallows Rd	September 11, 2019	Vienna, VA	Office	210,632	$	36,400	$	(367)
9 Presidential Boulevard	March 15, 2019	Bala Cynwyd, PA	Land	2.7 Acres	$	5,325	$	751

(a)Gain/(Loss) on Sale is net of closing and other transaction related costs.

(b)The Company sold a 60% equity interest in a portfolio of twelve suburban office properties containing an aggregate of 1.1 million square feet ("Mid-Atlantic Office Portfolio"), nine of which are located in the Pennsylvania suburbs and three of which are located in Maryland, to an unrelated third party for a gross sales price of $192.9 million. The transaction resulted in deconsolidation of the properties and formation of PA/MD NNN Office JV, LLC ("Mid-Atlantic Office JV"). The Company recorded its investment at fair value and recognized a gain of $15.2 million in "Net gain on disposition of real estate" on the consolidated statements of operations. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

(c)The Company sold a 30% preferred equity interest in two office buildings located in Philadelphia, Pennsylvania, to an unrelated third party for $115.0 million (the "Commerce Square Venture Transaction"), which resulted in deconsolidation of the properties and formation of Brandywine Commerce I LP and Brandywine Commerce II LP (collectively, the "Commerce Square Venture"). The transaction valued the properties at $600.0 million. The Company recorded its investment at fair value and recognized a gain of $271.9 million in "Net gain on disposition of real estate" on the consolidated statements of operations. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

(d)The sales price includes $4.1 million of variable consideration held in escrow that will be released to the Company over a six to nine month holdback period if certain tenants remain in compliance with certain payment terms of their lease agreements. The Company estimated the amount of the variable consideration that it deemed probable of collection and included such amount in the transaction price. The amount estimated as probable of collection was received during 2021. The Company will continue to evaluate the probability of collection on the remaining holdback and recognize any changes to the amount deemed probable as incremental gain on sale.

In addition, on February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to a newly formed joint venture with an unaffiliated third party. The project is part of the Schuylkill Yards master development. The Company's investment in the project was valued at $34.8 million and the transaction resulted in deconsolidation of the property and conversion of Brandywine Opportunity Fund, L.P. (formerly a wholly-owned subsidiary of the Operating Partnership) to a real estate venture ("3025 JFK Venture"). The Company recorded its investment at fair value and recognized a gain of $2.0 million in "Net gain on sale of undepreciated real estate" on the consolidated statements of operations. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further information.

During the year ended December 31, 2019, the Company also recorded a $1.0 million gain related to contingent consideration received related to a land sale that closed in a prior period in the Other segment. The Company also received additional proceeds from a sale that closed in a prior year related to a property in the Metropolitan Washington, D.C. segment resulting in $0.7 million of additional gain on sale.

One Uptown Venture

On December 1, 2021, the Company entered into two joint venture agreements with affiliates of Canyon Partners Real Estate to commence development of One Uptown, a $328.4 million mixed-used project in Austin, Texas. One Uptown has been designed to deliver 348,000 square feet of Class-A workspace and 15,000 square feet of street-level retail (through the "office" joint venture) and 341 apartment residences and a public park (through the "multifamily" joint venture) and a six-story parking garage to be shared by the two joint ventures. The Company's partner in each of the two joint ventures has agreed, subject to customary funding conditions, including closing of the applicable construction loan, to fund approximately $57.5 million of the combined project costs in exchange for a 50% preferred equity interest in each of the two joint ventures, with the Company retaining a 50% common equity interest in each. The Company is in the process of securing a construction loan for each of the two joint ventures that would total approximately $213.4 million, representing 65% of the combined project costs. Under the terms of each of the joint venture agreements, the joint venture partner has no obligation to fund any portion of the applicable project costs until the closing of the applicable construction loan. This right prevents the Company from meeting the sale recognition criteria of ASC 606 until the applicable closings of the construction loans.

Held for Use Impairment

As of December 31, 2021, 2020, and 2019, the Company evaluated the recoverability of the carrying value of its properties that triggered assessment. Based on the analysis, no impairments were identified during the twelve months ended December 31, 2021, 2020, and 2019.

Held for Sale

As of December 31, 2021, the Company determined that the sale of two adjacent parcels of land within the Other segment totaling 10.0 acres was probable and classified these properties as held for sale. As such, $0.6 million was classified as “Assets held for sale, net” on the consolidated balance sheets. The Company closed on the sale of the two parcels of land on January 20, 2022 for an aggregate sales price of $1.6 million.

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

As of December 31, 2021, the Company held ownership interests in nine unconsolidated real estate ventures for a net aggregate investment balance of $411.1 million, which includes a negative investment balance in one unconsolidated real estate venture of $24.4 million, reflected within "Other liabilities" on the consolidated balance sheets. As of December 31, 2021, four of the real estate ventures owned properties that contained an aggregate of approximately 8.2 million net rentable

square feet of office space; two real estate ventures owned 1.4 acres of land held for development; one real estate venture owned 1.0 acres of land in active development; one real estate venture owned a mixed used tower comprised of 250 apartment units and 0.2 million net rentable square feet of office/retail space; and one real estate venture owned a residential tower that contained 321 apartment units.

The Company accounts for its interests in the unconsolidated real estate ventures, which range from 15% to 70%, using the equity method. Certain of the unconsolidated real estate ventures are subject to specified priority allocations of distributable cash.

The Company earned management fees from the unconsolidated real estate ventures of $8.1 million, $4.7 million and $4.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company earned leasing commissions from the unconsolidated real estate ventures of $3.8 million, $1.1 million and $1.7 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $2.5 million and $1.2 million as of December 31, 2021 and 2020, respectively.

The amounts reflected in the following tables (except for the Company’s share of equity in income) are based on the financial information of the individual unconsolidated real estate ventures. The Company records operating losses of a real estate venture in excess of its investment balance if the Company is liable for the obligations of the real estate venture or is otherwise committed to provide financial support to the real estate venture.

The Company’s investment in the unconsolidated real estate ventures as of December 31, 2021 and 2020, and the Company’s share of the unconsolidated real estate ventures’ income (loss) for the years ended December 31, 2021 and 2020 was as follows (in thousands):

	Ownership Percentage	Carrying Amount				Company's Share of unconsolidated real estate venture Income (Loss)					Unconsolidated Real Estate Venture Debt at 100%, gross
		2021		2020		2021		2020		2019	2021		2020
Office Properties
Commerce Square Venture	70% (a)	$	247,798	$	253,128	$	(15,501)	$	(9,150)	—	$	213,069	$	219,168
Mid-Atlantic Office Venture	40% (a)	31,680		32,996		932		96		—	123,015		120,831
Brandywine - AI Venture LLC	50%	—		10,302		(721)		185		(2,800)	—		—
Herndon Innovation Center Metro Portfolio Venture, LLC	15%	15,844		16,019		(174)		(358)		(498)	207,302		207,302
MAP Venture	50%	(24,396)		(11,516)		(8,683)		(6,570)		(6,102)	184,263		185,000
PJP VII	25% (b)	—		—		—		—		190	—		—
PJP II	30% (b)	—		—		—		—		81	—		—
PJP VI	25% (b)	—		—		—		—		(185)	—		—
Other
4040 Wilson Venture (c)	50%	31,059		34,454		(2,258)		(2,162)		(368)	145,000		141,857
1919 Venture	50%	13,791		15,434		427		59		328	88,860		88,860
Development Properties
3025 JFK Venture	55%	56,370		—		(118)		—		—	—		—
JBG - 51 N Street (c)	70%	21,213		21,237		(402)		(457)		(313)	—		—
JBG - 1250 First Street Office (c)	70%	17,751		17,757		(199)		(227)		(255)	—		—
		$	411,110	$	389,811	$	(26,697)	$	(18,584)	(9,922)	$	961,509	$	963,018

(a)Ownership percentage represents the Company’s combined interest including preferred and common equity holdings. See "Commerce Square Venture" and "Mid-Atlantic Office JV" sections below for more information.

(b)On October 29, 2019, the Company sold its interest in PJP II, PJP VI and PJP VII. See "PJP Ventures" section below for more information on the disposal.

(c)This entity is a VIE.

The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of December 31, 2021 and December 31, 2020 (in thousands):

	December 31, 2021		December 31, 2020
Net property	$	1,563,263	$	1,520,804
Other assets	434,687		488,805
Other liabilities	331,947		333,049
Debt, net	956,668		956,688
Equity (a)	709,335		719,872

(a)This amount does not include the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level.

The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the twelve-month periods ended December 31, 2021, 2020 and 2019 (in thousands):

	Year Ended December 31,
	2021		2020		2019
Revenue	$	214,792	$	150,276	$	132,358
Operating expenses	(117,273)		(85,812)		(71,784)
Interest expense, net	(30,569)		(22,661)		(21,908)
Depreciation and amortization	(97,147)		(70,805)		(53,331)
Provision for impairment	(1,393)		—		(5,664)
Loss on early extinguishment of debt	—		—		(1,231)
Net loss	$	(31,590)	$	(29,002)	$	(21,560)
Ownership interest %	Various		Various		Various
Company's share of net loss	$	(25,972)	$	(18,540)	$	(9,865)
Basis adjustments and other	(725)		(44)		(57)
Equity in loss of unconsolidated real estate ventures	$	(26,697)	$	(18,584)	$	(9,922)

As of December 31, 2021, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands):

2022	$	8,543
2023	477,649
2024	330,317
2025	—
2026	145,000
Thereafter	—
Total principal payments	961,509
Net deferred financing costs	(5,923)
Net original issue premium	1,082
Outstanding indebtedness	$	956,668

4040 Wilson Venture

The 4040 Wilson LLC Venture (“4040 Wilson”) consists of one property containing an aggregate of 225,000 square feet of office/retail and 250 apartment units, located in the Metropolitan Washington, D.C. segment. The Company and its partner each own a 50% interest in 4040 Wilson. The residential component and office/retail portion of 4040 Wilson were substantially complete and placed into service during the first quarter of 2020 and the first quarter of 2021, respectively. During the fourth quarter of 2021, 4040 Wilson refinanced the $150.0 million secured construction loan into a $155.0 million mortgage loan secured by the property. The interest rate on this loan is 1.8% over term SOFR and matures in December 2026.

Brandywine - AI Venture

During the year ended December 31, 2021, Brandywine - AI Venture, recorded a $1.4 million held for sale impairment charge related to 3141 Fairview Park Drive. The Company’s share of the impairment charge was $0.7 million, which is reflected in “Equity in loss of Real Estate Ventures” in the consolidated statements of operations for the year ended December 31, 2021. The impairment was measured based on an executed sale agreement with a third-party. The Company determined that its investment in the real estate venture is not impaired as the Company's share of the distributable cash is in excess of the Company's basis in the real estate venture. On November 9, 2021, BDN AI Venture sold 3141 Fairview Park Drive, the last remaining office property, totaling 183,618 rentable square feet in Falls Church, Virginia, at an aggregate sales price of $27.6 million. The Company received cash proceeds of $12.6 million after closing costs. The Company recorded an $3.0 million gain within the caption "Net gain on real estate venture transactions" within its consolidated statements of operations for the year ended December 31, 2021 upon liquidation of the venture.

During 2019, BDN - AI Venture recorded a $5.6 million held for use impairment charge related to 3141 Fairview Park Drive. The Company’s share of the impairment charge was $2.8 million which is reflected in “Equity in loss of unconsolidated real estate ventures” in the consolidated statements of operations for the year ended December 31, 2019. The impairment was measured based on an appraisal of the property performed by a third party. The Company determined that its investment in the real estate venture was not impaired as the Company's share of the distributable cash was in excess of the Company's basis in the real estate venture.

During 2019, BDN - AI Venture transferred an office building located in Falls Church, Virginia containing 180,659 rentable square feet to the mortgage lender in full satisfaction of the lender’s outstanding $26.0 million mortgage loan. The mortgage loan was nonrecourse to the Company. The Company recognized its $2.2 million share of the gain on debt forgiveness in "Net gain on real estate venture transactions" in the consolidated statements of operations for the year ended December 31, 2019.

3025 JFK Venture

On February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to the 3025 JFK Venture. The Company's initial investment in this real estate venture at February 2, 2021 was $34.8 million. The real estate venture was formed to develop a 570,000 square foot mixed-use building at property under the long-term ground lease. The estimated project cost is approximately $287.3 million, and the joint venture partner has agreed, subject to customary funding conditions, to fund up to approximately $45.2 million of the project costs in exchange for a 45% preferred equity interest in the venture and the Company will retain a 55% preferred equity interest.

On July 23, 2021, the 3025 JFK Venture closed on a $186.7 million construction loan, which bears interest at 3.50% plus LIBOR (subject to a LIBOR floor of 0.25%) per annum and matures in July 2025. In addition to its $34.8 million credit for contribution of the leasehold interest at 3025 JFK Venture, the Company has funded $20.5 million of project costs as of December 31, 2021. The remaining project costs will be funded by the joint venture partner and the construction loan.

The Company has determined that the 3025 JFK Venture is a variable interest entity ("VIE"). As a result, the Company used the VIE model under the accounting standard for consolidation in order to determine whether to consolidate the 3025 JFK Venture. Based upon each member’s shared power over the activities of 3025 JFK Venture under the operating and related agreements, and the Company’s lack of control over the development and construction phases of the project, 3025 JFK Venture is accounted for under the equity method of accounting.

Mid-Atlantic Office JV

On December 21, 2020, the Company contributed a portfolio of twelve properties containing an aggregate of 1,128,645 square feet, nine of which are located in the Pennsylvania suburbs segment and three located in the Metropolitan Washington, D.C segment, to the Mid-Atlantic Office JV, for a gross sales price of $192.9 million. After the transaction, the Company owns approximately 25% of the equity interest in the Mid-Atlantic Office JV through a $20.0 million preferred equity holding and approximately 15% of the equity interest through a common equity interest (representing 20% of the total common equity), for a combined approximately 40% equity interest in the venture. On the closing date, Mid-Atlantic Office JV also obtained $147.4 million of third-party debt financing secured by the twelve properties within the venture, with an initial advance of $120.8 million. During the fourth quarter 2021, the Mid-Atlantic Office JV borrowed an additional

$2.2 million. The remaining funds available under the loan are $24.4 million. The loan bears interest at LIBOR + 3.15% capped at a total maximum interest rate of 5.6% and matures on January 9, 2024.

Commerce Square Venture

On July 21, 2020, the Company sold a 30% preferred equity interest in the entities that own One Commerce Square and Two Commerce Square, two office properties containing 1,896,142 square feet in Philadelphia, Pennsylvania. After the transaction, the Company owns approximately 32% of the equity interest in Commerce Square Venture through preferred equity interest holdings and approximately 38% of the equity interest in Commerce Square Venture as the sole common equity holder, for a combined approximately 70% equity interest in the venture. The properties held by the venture remain encumbered by the existing mortgages.

PJP Ventures

On October 29, 2019, PJP II, PJP VII and PJP VI, three real estate ventures in which the Company owned a 25%-30% interest, each sold its sole operating office property, totaling 204,347 rentable square feet in Charlottesville, Virginia, at an aggregate sales price of $51.0 million. The Company received cash proceeds of $9.1 million after closing costs and related debt payoffs. The Company recorded an $8.0 million gain within the caption "Net gains on real estate venture transactions" within its consolidated statements of operations for the year ended December 31, 2019.

Herndon Innovation Center Metro Portfolio Venture, LLC

The Herndon Innovation Center Metro Portfolio Venture, LLC (“Herndon Innovation Center”) consists of eight properties containing an aggregate of 1,293,197 square feet, located in the Metropolitan Washington, D.C. segment. The Company and its partner own 15% and 85% interests in the Herndon Innovation Center, respectively.

On March 29, 2019, Herndon Innovation Center obtained $134.1 million of third-party debt financing, secured by four properties within the venture, with an initial advance of $113.1 million. The remaining funds available under the loan have not yet been drawn. The Company received $16.7 million for its share of the cash proceeds on April 12, 2019. The loan bears interest at LIBOR + 1.95% capped at a total maximum interest rate of 5.45% - 6.45% over the term of the loan and matures on March 29, 2024. On April 11, 2019, the venture obtained an additional $115.3 million of third-party debt financing secured by the remaining four properties within the venture, with an initial advance of $94.2 million. The remaining funds available under the loan have not yet been drawn. The loan bears interest at LIBOR + 1.80% capped at a total maximum interest rate of 6.3% and matures on April 11, 2024. On April 12, 2019, the Company received $13.8 million for its share of the cash proceeds from the financing.

MAP Venture

The MAP Venture owns 58 office properties that contain an aggregate of 3,924,783 square feet located in the Pennsylvania Suburbs, New Jersey/Delaware, Metropolitan Washington, D.C. and Richmond, Virginia ("MAP Venture"). The MAP Venture leases the land parcels under the 58 office properties through a ground lease that extends through February 2115. Annual payments by the MAP Venture, as tenant under the ground lease, initially total $11.9 million and increase 2.5% annually through November 2025. Thereafter, annual rental payments increase by 2.5% or CPI at the discretion of the lessor.

1919 Venture

1919 Venture owns a 29-story, 455,000 square foot mixed-use tower consisting of 321 luxury apartments, 24,000 square feet of commercial space and a 215-car structured parking facility. See Note 5, ''Debt and Preferred Equity Investments" for additional information regarding the related-party note receivable with 1919 Venture.

JBG Ventures

JBG Ventures consists of 51 N 50 Patterson, Holdings, LLC Venture ("51 N Street") and 1250 First Street Office, LLC Venture ("1250 First Street"), with the Company owning a 70.0% equity interest and JBG/DC Manager, LLC ("JBG") owning a 30.0% equity interest in each of the two ventures. 51 N Street owns 0.9 acres of undeveloped land and 1250 First Street, owns 0.5 acres of undeveloped land.

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DEBT AND PREFERRED EQUITY INVESTMENTS

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

DEBT AND PREFERRED EQUITY INVESTMENTS

5. DEBT AND PREFERRED EQUITY INVESTMENTS

Austin Preferred Equity Investment

On December 31, 2020, the Company invested $50.0 million in exchange for a preferred equity interest in a single-purpose entity that owned two stabilized office buildings located in Austin, Texas. The Company accounted for this mandatorily redeemable investment as a note receivable, which was included within "Other assets" on the consolidated balance sheets.The preferred equity interest accrued a 9.0% annual return, compounded and paid monthly. The investment was required to be redeemed no later than December 31, 2023 (subject to a one-year extension option). On September 3, 2021, the $50.0 million investment was redeemed prior to maturity. As a result, the Company recognized an incremental $2.8 million of income on early redemption related to its accelerated minimum return and exit fees paid in cash on the redemption date during the three months ended September 30, 2021, which is included in "Interest and investment income" on the consolidated statements of operations.

1919 Venture Note Receivable

During 2018, each of the Company and the other equity partner in 1919 Venture, an unconsolidated real estate venture, provided a $44.4 million mortgage loan to 1919 Venture and, as a result, the Company recorded a $44.4 million related-party note receivable from 1919 Venture. The loan bears interest at a fixed 4.0% per annum interest rate with a scheduled maturity on June 25, 2023. 1919 Venture used the proceeds from the loans to repay its then outstanding $88.8 million construction loan. See Note 4, ''Investment in Unconsolidated Real Estate Ventures” for further information regarding 1919 Venture. As of December 31, 2021, the debt investment was performing in accordance with its terms and remains on accrual status.

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LEASES

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

LEASES

6. LEASES

Lessor Accounting

The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2021 are as follows (in thousands):

Year
2022	$	328,553
2023	327,981
2024	304,240
2025	274,216
2026	249,045
Thereafter	952,898

Lessee Accounting

As of December 31, 2021, the Company is the lessee under six long-term ground leases classified as "operating leases" in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed.

The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands):

	Year Ended December 31,
Lease Cost	2021			2020
Fixed lease cost	$	2,100		$	2,100
Variable lease cost	43			45
Total	$	2,143		$	2,145
Weighted-average remaining lease term (years)	55.2			55.9
Weighted-average discount rate	6.3		%	6.3		%

Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 8 to 63 years. Lease payments on noncancellable leases at December 31, 2021 are as follows (in thousands):

Year	Minimum Rent
2022	$	1,248
2023	1,263
2024	1,305
2025	1,321
2026	1,338
Thereafter	107,793
Total lease payments	$	114,268
Less: Imputed interest	91,306
Present value of operating lease liabilities	$	22,962

The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses.

LEASES

6. LEASES

Lessor Accounting

The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2021 are as follows (in thousands):

Year
2022	$	328,553
2023	327,981
2024	304,240
2025	274,216
2026	249,045
Thereafter	952,898

Lessee Accounting

As of December 31, 2021, the Company is the lessee under six long-term ground leases classified as "operating leases" in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed.

The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands):

	Year Ended December 31,
Lease Cost	2021			2020
Fixed lease cost	$	2,100		$	2,100
Variable lease cost	43			45
Total	$	2,143		$	2,145
Weighted-average remaining lease term (years)	55.2			55.9
Weighted-average discount rate	6.3		%	6.3		%

Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 8 to 63 years. Lease payments on noncancellable leases at December 31, 2021 are as follows (in thousands):

Year	Minimum Rent
2022	$	1,248
2023	1,263
2024	1,305
2025	1,321
2026	1,338
Thereafter	107,793
Total lease payments	$	114,268
Less: Imputed interest	91,306
Present value of operating lease liabilities	$	22,962

The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses.

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DEFERRED COSTS

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

DEFERRED COSTS

7. DEFERRED COSTS

As of December 31, 2021 and 2020, the Company’s deferred costs were comprised of the following (in thousands):

	December 31, 2021
	Total Cost		Accumulated Amortization		Deferred Costs, net
Leasing costs	$	143,895	$	(57,445)	$	86,450
Financing costs - Unsecured Credit Facility	6,299		(5,887)		412
Total	$	150,194	$	(63,332)	$	86,862

	December 31, 2020
	Total Cost		Accumulated Amortization		Deferred Costs, net
Leasing costs	$	139,207	$	(55,656)	$	83,551
Financing costs - Unsecured Credit Facility	6,299		(4,994)		1,305
Total	$	145,506	$	(60,650)	$	84,856

During the years ended December 31, 2021, 2020 and 2019, the Company capitalized internal direct leasing costs of $2.1 million, $1.6 million, and $1.7 million, respectively.

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INTANGIBLE ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND LIABILITIES

8. INTANGIBLE ASSETS AND LIABILITIES

As of December 31, 2021 and 2020, the Company’s intangible assets/liabilities were comprised of the following (in thousands):

	December 31, 2021
	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease value	$	72,376	$	(44,066)	$	28,310
Tenant relationship value	167		(97)		70
Above market leases acquired	486		(310)		176
Total intangible assets, net	$	73,029	$	(44,473)	$	28,556
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired	$	27,025	$	(14,044)	$	12,981

	December 31, 2020
	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease value	$	91,552	$	(43,400)	$	48,152
Tenant relationship value	2,091		(1,938)		153
Above market leases acquired	530		(265)		265
Total intangible assets, net	$	94,173	$	(45,603)	$	48,570
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired	$	31,263	$	(12,815)	$	18,448

For the years ended December 31, 2021, 2020, and 2019, the Company accelerated the amortization of intangible assets by approximately $3.6 million, $0.3 million, and $4.5 million, respectively, as a result of tenant move-outs prior to the end of the associated lease term. For the years ended December 31, 2021, 2020, and 2019 the Company accelerated the amortization of approximately $0.6 million, $0.1 million, and $2.2 million of intangible liabilities as a result of tenant move-outs.

As of December 31, 2021, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands):

	Assets		Liabilities
2022	$	9,642	$	2,588
2023	6,724		1,540
2024	4,433		1,321
2025	3,255		1,044
2026	1,195		754
Thereafter	3,307		5,734
Total	$	28,556	$	12,981

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DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

9. DEBT OBLIGATIONS

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of December 31, 2021 and 2020 (in thousands):

	December 31, 2021		December 31, 2020		Effective Interest Rate	Maturity Date
UNSECURED DEBT
$600 million Unsecured Credit Facility	$	23,000	$	—	LIBOR + 1.10%	July 2022	(a)
Seven-Year Term Loan - Swapped to fixed	250,000		250,000		2.87%	October 2022
$350.0M 3.95% Guaranteed Notes due 2023	350,000		350,000		3.87%	February 2023
$350.0M 4.10% Guaranteed Notes due 2024	350,000		350,000		3.78%	October 2024
$450.0M 3.95% Guaranteed Notes due 2027	450,000		450,000		4.03%	November 2027
$350.0M 4.55% Guaranteed Notes due 2029	350,000		350,000		4.30%	October 2029
Indenture IA (Preferred Trust I)	27,062		27,062		LIBOR + 1.25%	March 2035
Indenture IB (Preferred Trust I)	25,774		25,774		LIBOR + 1.25%	April 2035
Indenture II (Preferred Trust II)	25,774		25,774		LIBOR + 1.25%	July 2035
Principal balance outstanding	1,851,610		1,828,610
Plus: original issue premium (discount), net	8,187		10,137
Less: deferred financing costs	(6,211)		(8,152)
Total unsecured indebtedness	$	1,853,586	$	1,830,595

(a)The Company has the ability to extend the term of the Unsecured Credit Facility until July 2023 through two successive six-month extension options.

The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Parent Company has no material assets other than its investment in the Operating Partnership.

On July 17, 2018, the Company amended and restated its revolving credit agreement (as amended and restated, the “Unsecured Credit Facility”). The amendment and restatement, among other things: (i) maintained the total commitment of the revolving line of credit of $600.0 million; (ii) extended the maturity date from May 15, 2019 to July 15, 2022, with two six-month extensions at the Company’s election subject to specified conditions and subject to payment of an extension fee; (iii) reduced the interest rate margins applicable to Eurodollar loans; (iv) provided for an additional interest rate option based on a floating LIBOR rate; and (v) removed the covenant requiring the Company to maintain a minimum net worth. In connection with the amendments, the Company capitalized $2.7 million in financing costs, which will be amortized through the July 15, 2022 maturity date.

At the Company's option, loans outstanding under the Unsecured Credit Facility will bear interest at a rate per annum equal to (1) LIBOR plus between 0.775% and 1.45%, based on the Company's credit rating, or (2) a base rate equal to the greatest of (a) the Administrative Agent's prime rate, (b) the Federal Funds rate plus 0.5% or (c) LIBOR for a one month period plus 1.00%, in each case, plus a margin ranging from 0.0% to 0.45% based on the Company's credit rating. The Unsecured Credit Facility also contains a competitive bid option that allows banks that are part of the lender consortium to bid to make loan advances to the Company at a reduced interest rate. In addition, the Company is also obligated to pay (1) in quarterly installments a facility fee on the total commitment at a rate per annum ranging from 0.125% to 0.30% based on the Company's credit rating and (2) an annual fee on the undrawn amount of each letter or credit equal to the LIBOR Margin. Based on the Company's current credit rating, the LIBOR margin is 1.10% and the facility fee is 0.25%.

The terms of the Unsecured Credit Facility require that the Company maintain customary financial and other covenants, including: (i) a fixed charge coverage ratio greater than or equal to 1.5 to 1.00; (ii) a leverage ratio less than or equal to 0.60 to 1.00, subject to specified exceptions; (iii) a ratio of unsecured indebtedness to unencumbered asset value less than or equal to 0.60 to 1.00, subject to specified exceptions; (iv) a ratio of secured indebtedness to total asset value less than or equal to 0.40 to 1.00; and (v) a ratio of unencumbered cash flow to interest expense on unsecured debt greater than 1.75 to 1.00. In addition, the Unsecured Credit Facility restricts payments of dividends and distributions on shares in excess of 95% of the Company's funds from operations (FFO) except to the extent necessary to enable the Company to continue to qualify as a REIT for Federal income tax purposes.

The Company had $23.0 million of borrowings under the Unsecured Credit Facility as of December 31, 2021. During the twelve months ended December 31, 2021, the weighted-average interest rate on Unsecured Credit Facility borrowings was

1.21% resulting in $0.4 million of interest expense. During the twelve months ended December 31, 2020 weighted-average interest rate on Unsecured Credit Facility borrowings was 1.48% resulting in $0.5 million of interest expense.

The Company was in compliance with all financial covenants as of December 31, 2021. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital.

As of December 31, 2021, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands):

2022	$	273,000
2023	350,000
2024	350,000
2025	—
2026	—
Thereafter	878,610
Total principal payments	1,851,610
Net unamortized premiums/(discounts)	8,187
Net deferred financing costs	(6,211)
Outstanding indebtedness	$	1,853,586

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FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

10. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company determined the fair values disclosed below using available market information and discounted cash flow analyses as of December 31, 2021 and 2020, respectively. The discount rate used in calculating fair value is the sum of the current risk free rate and the risk premium on the date of measurement of the instruments or obligations. Considerable judgment is necessary to interpret market data and to develop the related estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize upon disposition. The use of different estimates and valuation methodologies may have a material effect on the fair value amounts shown. The Company believes that the carrying amounts reflected in the consolidated balance sheets at December 31, 2021 and 2020 approximate the fair values for cash and cash equivalents, accounts receivable, other assets and liabilities, accounts payable and accrued expenses because they are short-term in duration.

The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands):

	December 31, 2021				December 31, 2020
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
Unsecured notes payable	$	1,502,368	$	1,588,780	$	1,502,901	$	1,607,310
Variable rate debt	$	351,218	$	344,754	$	327,694	$	308,838
Notes receivable (b)	$	44,430	$	45,230	$	94,430	$	97,372

(a)Net of deferred financing costs of $5.8 million and $7.2 million for unsecured notes payable, $0.4 million and $0.9 million for variable rate debt as of December 31, 2021 and December 31, 2020, respectively.

(b)For further detail, refer to Note 5, ''Debt and Preferred Equity Investments.”

The Company used quoted market prices as of December 31, 2021 and December 31, 2020 to value the unsecured notes payable and, as such, categorized them as Level 2.

The inputs utilized to determine the fair value of the Company’s variable rate debt are categorized as Level 3. The fair value of the variable rate debt was determined using a discounted cash flow model that considered borrowing rates available to the Company for loans with similar terms and characteristics.

The inputs utilized to determine fair value of the Company's notes receivable are unobservable and, as such, were categorized as Level 3. Fair value was determined using a discounted cash flow model that considered the contractual interest and principal payments discounted at a blended interest rate of the notes receivable.

For the Company’s Level 3 financial instruments for which fair value is disclosed, an increase in the discount rate used to determine fair value would result in a decrease to the fair value. Conversely, a decrease in the discount rate would result in an increase to the fair value.

Disclosure about the fair value of financial instruments is based upon pertinent information available to management as of December 31, 2021 and December 31, 2020. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts were not comprehensively revalued for purposes of these financial statements since December 31, 2021. Current estimates of fair value may differ from the amounts presented herein.

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DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

11. DERIVATIVE FINANCIAL INSTRUMENTS

Use of Derivative Financial Instruments

The Company’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate that any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks through derivative financial instruments.

The Company formally assesses, both at the inception of a hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that a derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company will discontinue hedge accounting prospectively for either the entire hedge or the portion of the hedge that is determined to be ineffective. The related ineffectiveness would be charged to the consolidated statement of operations.

The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves.

To comply with the provisions of the accounting standard for fair value measurements and disclosures, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2021 and December 31, 2020. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands).

Hedge Product	Hedge Type	Designation		Notional Amount				Strike		Trade Date	Maturity Date	Fair value
				12/31/2021		12/31/2020						12/31/2021		12/31/2020
Liabilities
Swap	Interest Rate	Cash Flow	(a)	$	250,000	$	250,000	2.868	%	October 8, 2015	October 8, 2022	$	(2,461)	$	(6,627)
Swap	Interest Rate	Cash Flow	(b)	—		25,774		3.300	%	December 22, 2011	January 30, 2021	—		(120)
				$	250,000	$	275,774

(a)Hedging unsecured variable rate debt.

(b)On January 30, 2021, the interest rate hedge contract for this swap expired.

The Company measures its derivative instruments at fair value and records them in “Other assets” and (“Other liabilities”) on the Company’s consolidated balance sheets.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that the inputs utilized to determine the fair value of derivative instruments are classified in Level 2 of the fair value hierarchy.

Concentration of Credit Risk

Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, or are located in the same geographic region, or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. Management believes the current credit risk portfolio is reasonably well diversified and does not contain an unusual concentration of credit risk. No tenant accounted for 10% or more of the Company’s rents during 2021, 2020 and 2019.

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LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY

12 Months Ended

Dec. 31, 2021

Noncontrolling Interest [Abstract]

LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY

12. LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY

Noncontrolling interests in the Parent Company’s financial statements relate to redeemable common limited partnership interests in the Operating Partnership held by parties other than the Parent Company and properties which are consolidated but not wholly owned by the Operating Partnership.

Operating Partnership

The aggregate book value of the noncontrolling interests associated with the redeemable common limited partnership interests in the accompanying consolidated balance sheet of the Parent Company was $8.2 million and $10.5 million as of December 31, 2021 and December 31, 2020, respectively. Under the applicable accounting guidance, the redemption value of limited partnership units are carried at fair value. The Parent Company believes that the aggregate settlement value of these interests (based on the number of units outstanding and the average closing price of the common shares during the last five business days of the quarter) was approximately $11.1 million and $11.7 million as of December 31, 2021 and December 31, 2020, respectively.

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BENEFICIARIES' EQUITY OF THE PARENT COMPANY

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

BENEFICIARIES' EQUITY OF THE PARENT COMPANY

13. BENEFICIARIES' EQUITY OF THE PARENT COMPANY

Earnings per Share (EPS)

The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net income attributable to noncontrolling interests	(77)		(77)		(1,799)		(1,799)		(262)		(262)
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common shareholders	$	11,868	$	11,868	$	305,117	$	305,117	$	33,871	$	33,871
Denominator
Weighted-average shares outstanding	170,878,185		170,878,185		171,926,079		171,926,079		176,132,941		176,132,941
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Weighted-average shares outstanding	170,878,185		172,273,240		171,926,079		172,317,076		176,132,941		176,686,813
Earnings per Common Share:
Net income attributable to common shareholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

The contingent securities/share based compensation impact is calculated using the treasury stock method and relates to employee awards settled in shares of the Parent Company. The effect of these securities is anti-dilutive for periods that the Parent Company incurs a net loss from continuing operations available to common shareholders and therefore is excluded from the dilutive earnings per share calculation in such periods.

Redeemable common limited partnership units totaling 823,983 at December 31, 2021, 981,634 at December 31, 2020 and 981,634 at December 31, 2019, respectively, were excluded from the diluted earnings per share computations because they are not dilutive.

Unvested restricted shares are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the years ended December 31, 2021, 2020 and 2019, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted shares issued to the Company’s executives and other employees under the Company's shareholder-approved long-term incentive plan.

Common and Preferred Shares

On December 7, 2021, the Parent Company declared a distribution of $0.19 per common share, totaling $32.8 million, which was paid on January 19, 2022 to shareholders of record as of January 5, 2022.

During the year ended December 31, 2021, the Company issued 226,695 common shares in a private placement to an unaffiliated third party in exchange for the third party's 1% residual ownership interest in One and Two Commerce Square, an unconsolidated joint venture.

Of the 20,000,000 preferred shares authorized, none were outstanding as of December 31, 2021 or December 31, 2020.

Common Share Repurchases

The Parent Company maintains a common share repurchase program under which the Board of Trustees has authorized the Parent Company to repurchase common shares. On January 3, 2019, the Board of Trustees authorized the repurchase of up to $150.0 million common shares from and after January 3, 2019. During the year ended December 31, 2021, the Company did

not repurchase any common shares. During the year ended December 31, 2020, the Company repurchased and retired 6,248,483 common shares at an average price of $9.60 per share, totaling $60.0 million. During the year ended December 31, 2019, the Company repurchased and retired 1,337,169 common shares at an average price of $12.92 per share, totaling $17.3 million.

Former Continuous Offering Program

On January 10, 2017, the Parent Company entered into a continuous offering program (the “Offering Program”), that permitted the Parent Company to sell up to an aggregate of 16,000,000 common shares in at-the-market offerings.

There was no activity under the Offering Program during 2020 and 2019. At December 31, 2021, no common shares remained available for issuance under the Offering Program, which terminated on January 10, 2020.

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PARTNERS' EQUITY OF THE PARENT COMPANY

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

PARTNERS' EQUITY OF THE PARENT COMPANY

14. PARTNERS' EQUITY OF THE PARENT COMPANY

Earnings per Common Partnership Unit

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net (income) loss attributable to noncontrolling interests	3		3		(20)		(20)		(69)		(69)
Nonforfeitable dividends allocated to unvested restricted unitholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common unitholders	$	11,948	$	11,948	$	306,896	$	306,896	$	34,064	$	34,064
Denominator
Weighted-average units outstanding	171,770,843		171,770,843		172,907,713		172,907,713		177,114,932		177,114,932
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Total weighted-average units outstanding	171,770,843		173,165,898		172,907,713		173,298,710		177,114,932		177,668,804
Earnings per Common Partnership Unit:
Net income attributable to common unitholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per unit. For the years ended December 31, 2021, 2020 and 2019, earnings representing nonforfeitable dividends were allocated to the unvested restricted units issued to the Parent Company’s executives and other employees under the Parent Company’s shareholder-approved long-term incentive plan.

Common Partnership Units and Preferred Mirror Units

The Operating Partnership issues partnership units to the Parent Company in exchange for the contribution of the net proceeds of any equity security issuance by the Parent Company. The number and terms of such partnership units correspond to the number and terms of the related equity securities issued by the Parent Company. In addition, the Operating Partnership may also issue separate classes of partnership units. Historically, the Operating Partnership has had the following types of partnership units outstanding: (i) Preferred Partnership Units which have been issued to parties other than the Parent Company; (ii) Preferred Mirror Partnership Units which have been issued to the Parent Company; and (iii) Common Partnership Units which include both interests held by the Parent Company and those held by other limited partners.

Preferred Mirror Partnership Units

In exchange for the proceeds received in corresponding offerings by the Parent Company of preferred shares of beneficial interest, the Operating Partnership has issued to the Parent Company a corresponding amount of Preferred Mirror Partnership Units with terms consistent with that of the preferred securities issued by the Parent Company.

No preferred units were outstanding as of December 31, 2021 or December 31, 2020.

Common Partnership Units (Redeemable and General)

The Operating Partnership has two classes of Common Partnership Units outstanding as of December 31, 2021: (i) Class A Limited Partnership Interest which are held by both the Parent Company and outside third parties and (ii) General Partnership Interests which are held solely by the Parent Company (collectively, the Class A Limited Partnership Interest, and General Partnership Interests are referred to as “Common Partnership Units”). The holders of the Common Partnership Units are entitled to share in cash distributions from, and in profits and losses of, the Operating Partnership, in proportion to their respective percentage interests, subject to preferential distributions on the preferred mirror units and the preferred units.

The Common Partnership Units held by the Parent Company (comprised of both General Partnership Units and Class A Limited Partnership Units) are presented as partner’s equity in the consolidated financial statements. Class A Limited Partnership Interest held by parties other than the Parent Company are redeemable at the option of the holder for a like number of common shares of the Parent Company, or cash, or a combination thereof, at the election of the Parent Company. Because the form of settlement of these redemption rights are not within the control of the Operating Partnership, these Common Partnership Units have been excluded from partner’s equity and are presented as redeemable limited partnership units measured at the potential cash redemption value as of the end of the periods presented based on the closing market price of the Parent Company’s common shares at December 31, 2021, 2020 and 2019, which was $13.42, $11.91 and $15.75, respectively. Class A Units of 823,983 as of December 31, 2021, 981,634 as of December 31, 2020, and 981,634 as of December 31, 2019, respectively, were outstanding and owned by outside limited partners of the Operating Partnership.

On December 7, 2021, the Operating Partnership declared a distribution of $0.19 per common partnership unit, totaling $32.8 million, which was paid on January 19, 2022 to unitholders of record as of January 5, 2022. 

During the year ended December 31, 2021, the Operating Partnership issued 226,695 common partnership units to the Parent Company in exchange for a 1% residual ownership interest in One and Two Commerce Square, an unconsolidated joint venture, which was acquired from an unaffiliated third party in exchange for an equal number of common shares of the Parent Company.

Common Unit Repurchases

In connection with the Parent Company’s common share repurchase program, one common unit of the Operating Partnership is retired for each common share repurchased. During the year ended December 31, 2021, the Company did not repurchase any units. During the year ended December 31, 2020 the Company repurchased and retired 6,248,483 common units at an average price of $9.60 per unit, totaling $60.0 million. During the year ended December 31, 2019, the Company Repurchased 1,337,169 common units at an average price of $12.92 per unit, totaling $17.3 million.

The common units repurchased were retired and, as a result, were accounted for in accordance with Maryland law, which does not contemplate treasury stock. The repurchases were recorded as a reduction of common units (at $0.01 par value per unit) and a decrease to General Partnership Capital.

Former Continuous Offering Program

On January 10, 2017, the Parent Company entered into a continuous offering program (the “Offering Program”), which permitted it to sell up to an aggregate of 16,000,000 common units in at-the-market offerings. In connection with the commencement of the Offering Program, $0.2 million of upfront costs were recorded to General Partner Capital.

There was no activity under the Offering Program during 2020 and 2019. As of December 31, 2021, no common shares remained available for issuance under the Offering Program, which terminated on January 10, 2020.

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SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION

15. SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION

401(k) Plan

The Company sponsors a 401(k) defined contribution plan for its employees. Each employee may contribute up to 100% of annual compensation, subject to specific limitations under the Internal Revenue Code. At its discretion, the Company can make matching contributions equal to a percentage of the employee’s elective contribution and profit sharing contributions. The Company funds its 401(k) contributions annually and plan participants must be employed as of December 31 in order to receive employer contributions, except for employees eligible for qualifying retirement, as defined under the Internal Revenue Code. The Company contributions were $0.4 million, $0.5 million, and $0.4 million in 2021, 2020, and 2019, respectively.

Restricted Share Rights Awards

As of December 31, 2021, 474,978 restricted share rights ("Restricted Share Rights") were outstanding under the Company's long term equity incentive plan. These Restricted Share Rights vest over one to three years from the initial grant dates. The remaining compensation expense to be recognized with respect to these awards at December 31, 2021 was $1.8 million and is expected to be recognized over a weighted average remaining vesting period of 1.9 years. During the years ended December 31, 2021, 2020, and 2019, the amortization related to outstanding Restricted Share Rights was $4.1 million (of which $0.5 million was capitalized), $4.3 million (of which $0.4 million was capitalized), and $3.9 million (of which $0.3 million was capitalized), respectively. Compensation expense related to outstanding Restricted Share Rights is included in general and administrative expense.

The following table summarizes the Company’s Restricted Share Rights activity during the year-ended December 31, 2021:

	Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2021	488,735	$	15.19
Granted	343,179	$	12.72
Vested	(339,579)	$	15.12
Forfeited	(17,357)	$	13.55
Non-vested at December 31, 2021	474,978	$	13.51

On March 4, 2021, the Compensation Committee of the Parent Company’s Board of Trustees awarded to officers of the Company an aggregate of 252,278 Restricted Share Rights, which vest over three years from the grant date. Each Restricted Share Right entitles the holder to one common share upon settlement. The Parent Company pays dividend equivalents on the Restricted Share Rights prior to the settlement date. Vesting and/or settlement would accelerate if the recipient of the award were to die, become disabled or, in the case of certain of such Restricted Share Rights, retire in a qualifying retirement prior to the vesting or settlement date. Qualifying retirement generally means the recipient’s voluntary termination of employment after reaching at least age 57 and accumulating at least 15 years of service with the Company. In addition, vesting would also accelerate if the Parent Company were to undergo a change of control and, on or before the first anniversary of the change of control, the recipient’s employment were to cease due to a termination without cause or resignation with good reason.

The Restricted Share Rights granted in 2021, 2020, and 2019 to certain senior executives include an “outperformance feature” whereby additional shares may be earned, up to 200% of the shares subject to the basic award, based on the Company’s achievement of earnings-based targets and development, or investment, based targets during a three-year performance period with an additional two years to fully vest. In addition to the basic award, up to an aggregate of 388,840, 316,236, and 228,858 shares may be awarded under the outperformance feature for the 2021, 2020, and 2019 awards, respectively, to those senior officers whose Restricted Share Rights awards include the "outperformance feature." As of December 31, 2021, the Company has not recognized any compensation expense related to the outperformance feature for the 2019-2021 awards. The Company will continue to evaluate progression towards achievement of the performance metrics on a quarterly basis and recognize compensation expense for the outperformance feature of these awards should it be determined that achievement of these metrics is probable.

In addition, on February 23, 2021, the Compensation Committee awarded non-officer employees an aggregate of 49,267 Restricted Share Rights that generally vest in three equal annual installments. Vesting of these awards is subject to acceleration upon death, disability or termination without cause within one year following a change of control.

On May 18, 2021, the Compensation Committee awarded the Trustees an aggregate of 41,634 fully vested common shares.

In accordance with the accounting standard for share-based compensation, the Company amortizes share-based compensation costs through the qualifying retirement dates for those executives and Trustees who meet the conditions for qualifying retirement during the scheduled vesting period and whose award agreements provide for vesting upon a qualifying retirement.

Restricted Performance Share Units Plan

The Compensation Committee of the Parent Company’s Board of Trustees has granted performance share-based awards (referred to as Restricted Performance Share Units, or RPSUs) to officers of the Parent Company. The RPSUs are settled in common shares, with the number of common shares issuable in settlement determined based on the Company’s total shareholder return over specified measurement periods compared to total shareholder returns of comparative groups over the measurement periods. The table below presents certain information as to unvested RPSU awards.

	RPSU Grant Date
	2/21/2019		3/5/2020		3/5/2021		Total
(Amounts below in shares, unless otherwise noted)
Non-vested at January 1, 2021	206,069		319,600		—		525,669
Granted	—		—		380,957		380,957
Units Cancelled	(3,837)		(5,545)		(6,796)		(16,178)
Non-vested at December 31, 2021	202,232		314,055		374,161		890,448
Measurement Period Commencement Date	1/1/2019		1/1/2020		1/1/2021
Measurement Period End Date	12/31/2021		12/31/2022		12/31/2023
Granted	213,728		319,600		380,957
Fair Value of Units on Grant Date (in thousands)	$	4,627	$	5,389	$	6,389

The Company values each RPSU on its grant date using a Monte Carlo simulation. The fair values of each award are being amortized over the three year performance period. During the performance period, dividend equivalents are credited as additional RPSUs, subject to the same terms and conditions as the original RPSUs. The performance period will be abbreviated and the determination and delivery of earned shares will be accelerated in the event of a change in control or if the recipient of the award were to die, become disabled or retire in a qualifying retirement prior to the end of the otherwise applicable three year performance period; provided that, in the case of qualifying retirement for the March, 2021 and 2020 grants, the number of shares deliverable will be pro-rated based on the portion of the performance period actually worked before retirement. In accordance with the accounting standard for share-based compensation, the Company amortizes stock-based compensation costs for the February 2019 grant through the qualifying retirement date for those executives who meet the conditions for qualifying retirement during the scheduled vesting period.

For the year ended December 31, 2021, the Company recognized amortization of the 2021, 2020 and 2019 RPSU awards of $4.3 million, of which $0.5 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the year ended December 31, 2020, amortization for the 2020, 2019 and 2018 RPSU awards was $3.0 million, of which $0.4 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the year ended December 31, 2019, amortization for the 2019, 2018, and 2017 RPSU awards was $4.2 million, of which $0.6 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation.

The remaining compensation expense to be recognized with respect to the non-vested RPSUs at December 31, 2021 was approximately $6.3 million and is expected to be recognized over a weighted average remaining vesting period of 1.5 years.

The Company issued 82,513 common shares on February 1, 2021 in settlement of RPSUs that had been awarded on February 28, 2018 (with a three-year measurement period ended December 31, 2020). Holders of these RPSUs also received a cash dividend of $0.19 per share for these common shares on January 20, 2021.

Employee Share Purchase Plan

The Parent Company’s shareholders approved the 2007 Non-Qualified Employee Share Purchase Plan (the “ESPP”), which is intended to provide eligible employees with a convenient means to purchase common shares of the Parent Company through payroll deductions and voluntary cash purchases at an amount equal to 85% of the average closing price per share for a specified period. Under the plan document, the maximum participant contribution for the 2021 plan year is limited to the lesser of 20% of compensation or $50,000. The ESPP allows the Parent Company to make open market purchases, which reflects all purchases made under the plan to date. In addition, the number of shares separately reserved for issuance under the ESPP is 1.25 million. Employees made purchases under the ESPP of $0.6 million during the year ended December 31, 2021, $0.4 million during the year ended December 31, 2020 and $0.5 million during the year ended December 31, 2019. The Company recognized $0.1 million of compensation expense related to the ESPP during each of the years ended December 31, 2021, 2020, and 2019. Compensation expense represents the 15% discount on the purchase price. The Board of Trustees of the Parent Company may terminate the ESPP at its sole discretion at any time.

Deferred Compensation

In January 2005, the Parent Company adopted a Deferred Compensation Plan (the “Plan”) that allows trustees and certain key employees to defer compensation voluntarily. Compensation expense is recorded for the deferred compensation and a related liability is recognized. Participants may elect designated benchmark investment options for the notional investment of their deferred compensation. The deferred compensation obligation is adjusted for deemed income or loss related to the investments selected. At the time the participants defer compensation, the Company records a liability, which is included in the Company’s consolidated balance sheets. The liability is adjusted for changes in the market value of the participant-selected investments at the end of each accounting period, and the impact of adjusting the liability is recorded as an increase or decrease to compensation cost.

The Company has purchased mutual funds which can be utilized as a funding source for the Company’s obligations under the Plan. Participants in the Plan have no interest in any assets set aside by the Company to meet its obligations under the Plan. For each of the years ended December 31, 2021, December 31, 2020 and December 31, 2019, the Company recorded a nominal amount of deferred compensation costs, net of investments in the company-owned policies and mutual funds.

Participants in the Plan may elect to have all, or a portion of their deferred compensation invested in the Company’s common shares. The Company holds these shares in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. The Plan does not permit diversification of a participant’s deferral allocated to the Company common shares and deferrals allocated to Company common shares can only be settled with a fixed number of shares. In accordance with the accounting standard for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested, the deferred compensation obligation associated with the Company’s common shares is classified as a component of shareholder’s equity and the related shares are treated as shares to be issued and are included in total shares outstanding. At both December 31, 2021 and 2020, 1.2 million of such shares were included in total shares outstanding, respectively. Subsequent changes in the fair value of the common shares are not reflected in operations or shareholders’ equity of the Company.

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DISTRIBUTIONS

12 Months Ended

Dec. 31, 2021

Distributions [Abstract]

DISTRIBUTIONS

16. DISTRIBUTIONS

The following table provides the tax characteristics of the 2021, 2020 and 2019 distributions paid:

	Years ended December 31,
	2021			2020			2019
	(in thousands, except per share amounts)
Common Share Distributions:
Ordinary income	$	0.64		$	0.41		$	0.62
Capital gain	0.01			0.35			—
Non-taxable distributions	0.11			—			0.14
Distributions per share	$	0.76		$	0.76		$	0.76
Percentage classified as ordinary income	83.90		%	53.90		%	81.00		%
Percentage classified as capital gain	1.20		%	46.10		%	—		%
Percentage classified as non-taxable distribution	14.90		%	—		%	19.00		%

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INCOME TAXES AND TAX CREDIT TRANSACTIONS

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES AND TAX CREDIT TRANSACTIONS

17. INCOME TAXES AND TAX CREDIT TRANSACTIONS

Income Tax Provision/Benefit

The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

As of December 31, 2021 and 2020 there were no deferred tax assets included within “Other assets” in the consolidated balance sheets.

The Company had no accruals for tax uncertainties as of December 31, 2021 and December 31, 2020.

For the year ended December 31, 2021, there was no deferred income tax expense and nominal current income tax expense. For the year ended December 31, 2020, there was no deferred income tax expense and $0.2 million of current income tax benefit. For the year ended December 31, 2019, there was $0.1 million of deferred income tax expense and $0.1 million of current income tax benefit. These amounts are included in “Income tax (provision) benefit” in the consolidated statements of operations.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Accumulated Other Comprehensive Income (Loss)

18. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table details the components of accumulated other comprehensive income (loss) of the Parent Company and the Operating Partnership as of and for the three years ended December 31, 2021 (in thousands):

Parent Company	Cash Flow Hedges
Balance at January 1, 2019	$	5,029
Change in fair market value during year	(8,210)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	41
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	770
Balance at December 31, 2019	$	(2,370)
Change in fair market value during year	(5,972)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	29
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2020	$	(7,561)
Change in fair market value during year	4,817
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	(28)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2021	$	(2,020)

Operating Partnership	Cash Flow Hedges
Balance at January 1, 2019	$	4,725
Change in fair market value during year	(8,210)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	770
Balance at December 31, 2019	$	(2,715)
Change in fair market value during year	(5,972)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2020	$	(7,935)
Change in fair market value during year	4,817
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2021	$	(2,366)

Over time, the unrealized gains and losses held in Accumulated Other Comprehensive Income (“AOCI”) will be reclassified to interest expense when the related hedged items are recognized in earnings. The current balance held in AOCI is expected to be reclassified to interest expense for realized losses on forecasted debt transactions over the related term of the debt obligation, as applicable. The Company expects to reclassify $0.6 million from AOCI into interest expense within the next twelve months.

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SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

19. SEGMENT INFORMATION

As of December 31, 2021, the Company owns and manages properties within five segments: (1) Philadelphia Central Business District ("Philadelphia CBD"), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Other segment includes properties located in Camden County, New Jersey and New Castle County, Delaware. In addition to the five segments, the corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress is transferred to operating properties by region upon completion of the associated construction or project.

The following tables provide selected asset information and results of operations of the Company’s reportable segments (in thousands):

Real estate investments, at cost:
	December 31, 2021		December 31, 2020
Philadelphia CBD	$	1,460,510	$	1,433,927
Pennsylvania Suburbs	866,223		871,530
Austin, Texas	778,145		728,741
Metropolitan Washington, D.C.	280,921		352,794
Other	86,803		87,117
Operating Properties	$	3,472,602	$	3,474,109
Corporate
Right of use asset - operating leases, net	$	20,313	$	20,977
Construction-in-progress	$	277,237	$	210,311
Land held for development	$	114,604	$	117,984
Prepaid leasehold interests in land held for development, net	$	27,762	$	39,185

.

Net operating income:

	Year Ended December 31,
	2021						2020						2019
	Total revenue		Operating expenses (a)		Net operating income		Total revenue		Operating expenses (a)		Net operating income (loss)		Total revenue		Operating expenses (a)		Net operating income (loss)
Philadelphia CBD	$	207,858	$	(73,695)	$	134,163	$	232,028	$	(82,505)	$	149,523	$	263,769	$	(100,219)	$	163,550
Pennsylvania Suburbs	124,566		(40,011)		84,555		141,613		(46,281)		95,332		141,084		(47,418)		93,666
Austin, Texas	101,680		(39,374)		62,306		102,982		(39,759)		63,223		104,157		(38,285)		65,872
Metropolitan Washington, D.C.	19,865		(15,386)		4,479		40,223		(20,791)		19,432		51,498		(23,455)		28,043
Other	14,015		(9,840)		4,175		13,469		(9,815)		3,654		14,558		(9,328)		5,230
Corporate	18,835		(10,005)		8,830		4,537		(6,305)		(1,768)		5,351		(7,141)		(1,790)
Operating properties	$	486,819	$	(188,311)	$	298,508	$	534,852	$	(205,456)	$	329,396	$	580,417	$	(225,846)	$	354,571

(a)Includes property operating expense, real estate taxes and third party management expense.

Unconsolidated real estate ventures:
	Investment in real estate ventures, at equity				Equity in income (loss) of real estate venture
	As of				Year ended December 31,
	December 31, 2021		December 31, 2020		2021		2020		2019
Philadelphia CBD	$	317,959	$	268,562	$	(15,191)	$	(9,090)	$	328
Metropolitan Washington, D.C.	85,867		99,769		(3,755)		(3,019)		(4,234)
Mid-Atlantic Office JV	31,680		32,996		932		96		—
MAP Venture	(24,396)		(11,516)		(8,683)		(6,571)		(6,102)
Other	—		—		—		—		86
Total	$	411,110	$	389,811	$	(26,697)	$	(18,584)	$	(9,922)

Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total revenue less property operating expenses, real estate taxes, and third party management expenses. Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance and management fees. General and administrative expenses that are not reflected in NOI primarily consist of corporate-level salaries, amortization of share awards and professional fees that are incurred as part of corporate office management. NOI presented by the Company may not be comparable to NOI reported by other companies that define NOI differently. NOI is the primary measure that is used by the Company's management to evaluate the operating performance of the Company's real estate assets by segment. The Company believes NOI provides useful information to investors regarding the financial condition and results of operations because it reflects only those

income and expense items that are incurred at the property level. While NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. NOI does not reflect interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. The Company believes that net income (loss), as defined by GAAP, is the most appropriate earnings measure. The following is a reconciliation of consolidated net income (loss), as defined by GAAP, to consolidated NOI, (in thousands):

	Year Ended December 31,
	2021		2020		2019
Net income	$	12,366	$	307,326	$	34,529
Plus:
Interest expense	62,617		73,911		81,512
Interest expense - amortization of deferred financing costs	2,836		2,904		2,768
Depreciation and amortization	178,105		188,283		210,005
General and administrative expenses	30,153		30,288		32,156
Equity in loss of unconsolidated real estate ventures	26,697		18,584		9,922
Less:
Interest and investment income	8,295		1,939		2,318
Income tax (provision) benefit	(47)		224		(12)
Net gain on disposition of real estate	142		289,461		356
Net gain on sale of undepreciated real estate	2,903		201		2,020
Net gain on real estate venture transactions	2,973		75		11,639
Consolidated net operating income	$	298,508	$	329,396	$	354,571

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

20. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company is involved from time to time in litigation on various matters, including disputes with tenants, disputes with vendors, employee disputes and disputes arising out of agreements to purchase or sell properties or joint ventures or disputes relating to state and local taxes. Given the nature of the Company’s business activities, these lawsuits are considered routine to the conduct of its business. The result of any particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system. The Company will establish reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and when the amount of loss is reasonably estimable. The Company does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company.

Environmental

As an owner of real estate, the Company is subject to various environmental laws of federal, state, and local governments. The Company’s compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Company does not believe it will have a material adverse effect in the future. However, the Company cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current Properties or on properties that the Company may acquire.

Fair Value of Contingent Consideration

On April 2, 2015, the Company purchased 618 Market Street in Philadelphia, Pennsylvania. The allocated purchase price included contingent consideration of $2.0 million payable to the seller upon commencement of development. The liability was recorded at a fair value of $1.6 million and has fully accreted through interest expense to $2.0 million as of December 31, 2021. The fair value of this contingent consideration was determined using a probability weighted discounted cash flow model based on the period until development was originally expected to commence. The significant inputs to the discounted

cash flow model were the discount rate and weighted probability scenarios. As the inputs were unobservable, the Company determined the inputs used to value this liability fall within Level 3 for fair value reporting.

Debt Guarantees

As of December 31, 2021, the Company's unconsolidated real estate ventures had aggregate indebtedness of $961.5 million. These loans are generally mortgage or construction loans, most of which are nonrecourse to the Company, except for customary recourse carve-outs. In addition, during construction undertaken by the unconsolidated real estate ventures, including the 3025 JFK Venture, the Company has provided, and expects to continue to provide, cost overrun and completion guarantees, as well as customary environmental indemnities and guarantees of customary exceptions to nonrecourse provisions in loan agreements. In the agreement with its partner in the 3025 JFK Venture, the Company agreed to provide cost overrun and completion guaranties for the project under development. With respect to the construction loan obtained by 3025 JFK Venture on July 23, 2021, the Company has also provided a carry guarantee and limited payment guarantee up to 25% of the principal balance of the $186.7 million construction loan.

Impact of Natural Disasters and Casualty

The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses is considered a gain contingency and is not recorded until the proceeds are received.

In February 2021, one of the Company's properties in Austin, Texas sustained damage from the winter storms and resulting power grid failures. As a result of the damage, during the year ended December 31, 2021, the Company recorded a fixed asset write-off totaling $1.2 million. During the year ended December 31, 2021, the Company has recorded an estimated $7.2 million of restoration costs, of which $1.9 million is included in Accounts payable and accrued expenses on the consolidated balance sheets as of December 31, 2021. The Company has also sustained business interruption loss of $3.9 million related to unpaid rent, which is also fully covered under the insurance policy. During the year ended December 31, 2021, the Company has received $15.3 million of insurance proceeds, resulting in full recovery of the costs incurred to date. The $3.0 million of insurance proceeds received in excess of the fixed asset write-off, total business interruption, and total estimated restoration cost during the year ended December 31, 2021 is included in Other income on the consolidated statement of operations.

Other Commitments or Contingencies

Under the terms of each of the One Uptown joint venture agreements, the joint venture partner is not required to fund project costs until the closing of the applicable construction loans. In the event that the Company does not close on the applicable construction loan for each of the joint ventures by June 30, 2022, the joint venture partner could elect to assign its interest in the project to the Company and have no obligation to fund the project costs. In addition, the Company has provided cost overrun and completion guarantees, as well as customary environmental indemnities, for each of the One Uptown joint ventures. See Note 3, ''Real Estate Investments” for further information regarding the One Uptown joint ventures.

In connection with the Schuylkill Yards Project, the Company entered into a neighborhood engagement program and, as of December 31, 2021, had $7.0 million of future fixed contractual obligations. The Company also committed to fund additional contributions under the program. As of December 31, 2021, the Company estimates that these additional contributions, which are not fixed under the terms of agreement, will be $2.4 million.

In connection with the formation of the Commerce Square Venture, the Company has committed to investing an additional $20.0 million of preferred equity in the properties on a pari passu basis with its joint venture partner of which $2.1 million has been contributed by the Company as of December 31, 2021.

As part of the Company’s September 2004 acquisition of a portfolio of properties from The Rubenstein Company (which the Company refers to as the “TRC acquisition”), the Company acquired its interest in Two Logan Square, a 708,844 square foot office building in Philadelphia, Pennsylvania primarily through its ownership of a second and third mortgage secured by this property. This property is consolidated, as the borrower is a variable interest entity and the Company, through its ownership of the second and third mortgages, is the primary beneficiary. On October 21, 2020, the Company also acquired the

$79.8 million first mortgage on the property from the third-party mortgage lender pursuant to an agreement with certain of the former owners. Under the agreement, the Company has agreed to not take title to Two Logan until the earlier of June 2026 or the occurrence of certain events related to the ownership interests of certain former owners. If the Company were to sell the restricted property before the expiration of the restricted period in a non-exempt transaction, the Company may be required to make significant payments to certain of the former owners of Two Logan Square on account of tax liabilities attributed to them. Additionally, the Company will be required to pay these certain former owners an amount estimated at approximately $0.6 million to redeem their residual interest in the fee owner of this property. The $0.6 million payment is included within "Other liabilities" on the consolidated balance sheets.

The Company invests in its properties and regularly incurs capital expenditures in the ordinary course of business to maintain the properties. The Company believes that such expenditures enhance its competitiveness. The Company also enters into construction, utility and service contracts in the ordinary course of business which may extend beyond one year. These contracts typically provide for cancellation with insignificant or no cancellation penalties.

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

Schedule II

Valuation and Qualifying Accounts

(in thousands)

Description	Balance at Beginning of Year		Additions		Deductions (1)		Balance at End of Year
Allowance for doubtful accounts:
December 31, 2021	$	5,086	$	—	$	953	$	4,133
December 31, 2020	$	7,975	$	—	$	2,889	$	5,086
December 31, 2019	$	12,919	$	—	$	4,944	$	7,975

(1)Deductions represent amounts that the Company had fully reserved for in prior years and were subsequently deemed uncollectible. Deductions also represent reversals of the accrued rent receivable allowance as a result of the Company's ongoing assessment of its general accrued rent receivable reserve.

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Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]

Real Estate and Accumulated Depreciation

BRANDYWINE REALTY TRUST AND BRANDYWINE OPERATING PARTNERSHIP, L.P.

Schedule III

Real Estate and Accumulated Depreciation — December 31, 2021

(in thousands)

			Initial Cost						Gross Amount Which Carried December 31, 2021
Property Name	City	State	Land		Building & Improvements		Net Improvements (Retirements) Since Acquisition		Land		Building & Improvements		Total (a)		Accumulated Depreciation at December 31, 2021 (b)		Year of Construction	Year Acquired	Depreciable Life
PENNSYLVANIA SUBURBS
Six Tower Bridge (181 Washington Street)	Conshohocken	PA	$	6,927	$	14,722	$	1,747	$	6,237	$	17,159	$	23,396	$	4,436	1999	2013	(c)
426 West Lancaster Avenue	Devon	PA	1,689		6,756		9,400		1,686		16,159		17,845		1,614		1990	1998	(c)
640 Freedom Business Center (d)	King Of Prussia	PA	1,015		20,098		4,252		360		25,005		25,365		15,445		1991	1998	(c)
620 Freedom Business Center (d)	King Of Prussia	PA	666		13,118		1,498		234		15,048		15,282		9,596		1986	1998	(c)
1000 First Avenue	King Of Prussia	PA	—		13,708		2,806		—		16,514		16,514		11,778		1980	1998	(c)
1060 First Avenue	King Of Prussia	PA	—		13,665		4,014		—		17,679		17,679		12,249		1987	1998	(c)
630 Freedom Business Center Drive (d)	King Of Prussia	PA	666		13,251		2,937		237		16,617		16,854		10,322		1989	1998	(c)
1020 First Avenue	King Of Prussia	PA	—		10,744		4,306		—		15,050		15,050		10,380		1984	1998	(c)
1040 First Avenue	King Of Prussia	PA	—		14,142		4,915		—		19,057		19,057		13,367		1985	1998	(c)
610 Freedom Business Center Drive (d)	King Of Prussia	PA	485		9,602		2,415		172		12,330		12,502		8,007		1985	1998	(c)
650 Park Avenue	King Of Prussia	PA	1,916		4,378		(4,378)		1,916		—		1,916		—		1968	1998	(c)
600 Park Avenue	King Of Prussia	PA	1,012		4,048		385		1,012		4,433		5,445		2,888		1964	1998	(c)
933 First Avenue	King Of Prussia	PA	3,127		20,794		(1,125)		3,127		19,669		22,796		3,954		2017	N/A	(c)
500 North Gulph Road	King Of Prussia	PA	1,303		5,201		21,471		1,303		26,672		27,975		3,526		1979	1996	(c)
401 Plymouth Road	Plymouth Meeting	PA	6,199		16,131		15,622		6,199		31,753		37,952		16,559		2001	2000	(c)
Metroplex (4000 Chemical Road)	Plymouth Meeting	PA	4,373		24,546		5,498		4,373		30,044		34,417		8,667		2007	2001	(c)
610 West Germantown Pike	Plymouth Meeting	PA	3,651		14,514		4,493		3,651		19,007		22,658		9,635		1987	2002	(c)
600 West Germantown Pike	Plymouth Meeting	PA	3,652		15,288		2,692		3,652		17,980		21,632		8,989		1986	2002	(c)
630 West Germantown Pike	Plymouth Meeting	PA	3,558		14,743		2,221		3,558		16,964		20,522		8,623		1988	2002	(c)
620 West Germantown Pike	Plymouth Meeting	PA	3,572		14,435		2,541		3,572		16,976		20,548		7,992		1990	2002	(c)
660 West Germantown Pike	Plymouth Meeting	PA	3,694		5,487		19,473		5,405		23,249		28,654		7,549		1987	2012	(c)
351 Plymouth Road	Plymouth Meeting	PA	1,043		555		—		1,043		555		1,598		232		N/A	2000	(c)
150 Radnor Chester Road	Radnor	PA	11,925		36,986		21,940		11,897		58,954		70,851		23,715		1983	2004	(c)
One Radnor Corporate Center	Radnor	PA	7,323		28,613		18,811		7,323		47,424		54,747		33,343		1998	2004	(c)
201 King of Prussia Road	Radnor	PA	8,956		29,811		4,816		8,949		34,634		43,583		22,224		2001	2004	(c)
555 Lancaster Avenue	Radnor	PA	8,014		16,508		10,137		8,609		26,050		34,659		11,546		1973	2004	(c)
Four Radnor Corporate Center	Radnor	PA	5,406		21,390		11,094		5,705		32,185		37,890		17,219		1995	2004	(c)
Five Radnor Corporate Center	Radnor	PA	6,506		25,525		8,682		6,578		34,135		40,713		15,124		1998	2004	(c)
Three Radnor Corporate Center	Radnor	PA	4,773		17,961		2,016		4,791		19,959		24,750		11,401		1998	2004	(c)
Two Radnor Corporate Center	Radnor	PA	3,937		15,484		2,685		3,942		18,164		22,106		11,120		1998	2004	(c)
130 Radnor Chester Road	Radnor	PA	2,573		8,338		(134)		2,567		8,210		10,777		3,997		1983	2004	(c)
170 Radnor Chester Road	Radnor	PA	2,514		8,147		1,667		2,509		9,819		12,328		5,138		1983	2004	(c)
200 Radnor Chester Road	Radnor	PA	3,366		—		3,621		3,366		3,621		6,987		995		2014	2005	(c)
101 West Elm Street	W. Conshohocken	PA	6,251		25,209		3,057		6,251		28,266		34,517		11,729		1999	2005	(c)
1 West Elm Street	W. Conshohocken	PA	3,557		14,249		7,712		3,557		21,961		25,518		6,723		1999	2005	(c)
Four Tower Bridge (200 Barr Harbor Drive)	W. Conshohocken	PA	6,000		14,734		402		6,000		15,136		21,136		1,650		1998	2018	(c)

			Initial Cost			Gross Amount Which Carried December 31, 2021
Property Name	City	State	Land	Building & Improvements	Net Improvements (Retirements) Since Acquisition	Land	Building & Improvements	Total (a)	Accumulated Depreciation at December 31, 2021 (b)	Year of Construction	Year Acquired	Depreciable Life
PHILADELPHIA CBD
Cira Centre (2929 Arch Street)	Philadelphia	PA	—	208,570	(22,427)	12,586	173,557	186,143	67,765	2005	N/A	(c)
Three Logan Square (1717 Arch Street)	Philadelphia	PA	—	98,188	84,992	25,195	157,985	183,180	54,136	1990	2010	(c)
One Logan Square (130 North 18th Street)	Philadelphia	PA	14,496	107,736	21,633	14,473	129,392	143,865	65,373	1998	2004	(c)
Two Logan Square (100 North 18th Street)	Philadelphia	PA	16,066	100,255	26,795	16,066	127,050	143,116	56,054	1988	2004	(c)
Cira Centre South Garage (129 South 30th Street) (d)	Philadelphia	PA	—	76,008	26,885	6,727	96,166	102,893	25,080	2010	N/A	(c)
1900 Market Street	Philadelphia	PA	7,768	17,263	61,783	7,768	79,046	86,814	25,142	1981	2012	(c)
3020 Market Street	Philadelphia	PA	—	21,417	7,751	—	29,168	29,168	12,800	1959	2011	(c)
618-634 Market Street	Philadelphia	PA	13,365	5,791	5,186	13,365	10,977	24,342	6,821	1966	2015	(c)
FMC Tower at Cira Centre South (2929 Walnut Street)	Philadelphia	PA	—	400,294	9,493	—	409,787	409,787	70,803	2016	N/A	(c)
2100 Market Street	Philadelphia	PA	18,827	—	6,300	18,854	6,273	25,127	1,858	N/A	2015	(c)
1505-11 Race Street	Philadelphia	PA	3,662	6,061	8	3,670	6,061	9,731	177	1922	2020	(c)
3000 Market Street (e)	Philadelphia	PA	18,924	13,080	16,264	18,924	29,344	48,268	504	1937	2017	(c)
The Bulletin Building (3025 Market Street) (e)	Philadelphia	PA	—	24,377	43,599	—	67,976	67,976	7,928	1953	2017	(c)
3001-3003 JFK Boulevard (f)	Philadelphia	PA	—	—	111	—	111	111	24	N/A	2018	N/A
METROPOLITAN WASHINGTON, D.C.
6600 Rockledge Drive	Bethesda	MD	—	37,421	9,956	—	47,377	47,377	17,816	1981	2006	(c)
1676 International Drive	McLean	VA	18,437	97,538	25,740	18,785	122,930	141,715	31,083	1999	2006	(c)
8260 Greensboro Drive	McLean	VA	7,952	33,964	8,114	8,102	41,928	50,030	13,598	1980	2006	(c)
8521 Leesburg Pike	Vienna	VA	4,316	30,885	6,575	4,397	37,379	41,776	14,332	1984	2006	(c)
AUSTIN, TX
401-405 Colorado Street (g)	Austin	TX	—	47,132	—	—	47,132	47,132	491	2021	N/A	(c)
11501 Burnet Road - Building 1	Austin	TX	3,755	22,702	4	3,755	22,706	26,461	6,062	1991	2015	(c)
11501 Burnet Road - Building 2	Austin	TX	2,732	16,305	1,473	2,732	17,778	20,510	5,252	1991	2015	(c)
11501 Burnet Road - Building 3	Austin	TX	3,688	22,348	(1,510)	3,688	20,838	24,526	5,560	1991	2015	(c)
11501 Burnet Road - Building 4	Austin	TX	2,614	15,740	3	2,614	15,743	18,357	4,203	1991	2015	(c)
11501 Burnet Road - Building 5	Austin	TX	3,689	22,354	4	3,689	22,358	26,047	5,970	1991	2015	(c)
11501 Burnet Road - Building 6	Austin	TX	2,676	15,972	13,964	2,676	29,936	32,612	8,808	1991	2015	(c)
11501 Burnet Road - Building 8	Austin	TX	1,400	7,422	1,521	1,400	8,943	10,343	2,452	1991	2015	(c)
11501 Burnet Road - Parking Garage	Austin	TX	—	19,826	3	—	19,829	19,829	6,289	1991	2015	(c)
Four Points Centre 3 (11120 Four Points Drive)	Austin	TX	1,140	—	40,322	1,141	40,321	41,462	5,062	2019	2013	(c)
One Barton Skyway (1501 South MoPac Expressway)	Austin	TX	10,496	47,670	5,421	10,495	53,092	63,587	4,697	1999	2018	(c)
Two Barton Skyway (1601 South MoPac Expressway)	Austin	TX	10,849	53,868	3,454	10,848	57,323	68,171	5,390	2000	2018	(c)
Three Barton Skyway (1221 South MoPac Expressway)	Austin	TX	10,374	47,624	286	10,373	47,911	58,284	3,865	2001	2018	(c)
Four Barton Skyway (1301 South MoPac Expressway)	Austin	TX	13,301	57,041	4,060	13,300	61,102	74,402	5,044	2001	2018	(c)

			Initial Cost						Gross Amount Which Carried December 31, 2021
Property Name	City	State	Land		Building & Improvements		Net Improvements (Retirements) Since Acquisition		Land		Building & Improvements		Total (a)		Accumulated Depreciation at December 31, 2021 (b)		Year of Construction	Year Acquired	Depreciable Life
Four Points Centre (11305 Four Points Drive)	Austin	TX	7,800		43,581		3,981		7,800		47,562		55,362		4,640		2008	2018	(c)
River Place - Building 1 (6500 River Place Boulevard)	Austin	TX	2,004		17,680		547		2,004		18,227		20,231		1,624		2000	2018	(c)
River Place - Building 2 (6500 River Place Boulevard)	Austin	TX	3,137		29,254		675		3,137		29,929		33,066		2,490		2000	2018	(c)
River Place - Building 3 (6500 River Place Boulevard)	Austin	TX	3,064		26,705		294		3,064		26,999		30,063		2,164		2000	2018	(c)
River Place - Building 4 (6500 River Place Boulevard	Austin	TX	2,273		18,617		1,141		2,273		19,758		22,031		2,030		2000	2018	(c)
River Place - Building 5 (6500 River Place Boulevard)	Austin	TX	1,752		14,315		106		1,752		14,421		16,173		1,161		2001	2018	(c)
River Place - Building 6 (6500 River Place Boulevard)	Austin	TX	1,598		12,945		30		1,598		12,975		14,573		1,027		2001	2018	(c)
River Place - Building 7 (6500 River Place Boulevard)	Austin	TX	1,801		16,486		1,103		1,801		17,589		19,390		1,837		2002	2018	(c)
Quarry Lake II (4516 Seton Center Parkway)	Austin	TX	3,970		30,546		1,024		3,867		31,673		35,540		2,681		1998	2018	(c)
OTHER
10 Foster Avenue	Gibbsboro	NJ	244		971		110		244		1,081		1,325		666		1983	1997	(c)
7 Foster Avenue	Gibbsboro	NJ	231		921		31		231		952		1,183		601		1983	1997	(c)
2 Foster Avenue	Gibbsboro	NJ	185		730		11		185		741		926		741		1974	1997	(c)
4 Foster Avenue	Gibbsboro	NJ	183		726		6		183		732		915		732		1974	1997	(c)
1 Foster Avenue	Gibbsboro	NJ	93		364		8		93		372		465		372		1972	1997	(c)
5 U.S. Avenue	Gibbsboro	NJ	21		81		2		21		83		104		83		1987	1997	(c)
5 Foster Avenue	Gibbsboro	NJ	9		32		3		9		35		44		35		1968	1997	(c)
Main Street - Plaza 1000	Voorhees	NJ	2,732		10,942		284		2,732		11,226		13,958		11,036		1988	1997	(c)
Main Street - Piazza	Voorhees	NJ	696		2,802		3,631		704		6,425		7,129		4,214		1990	1997	(c)
Main Street - Promenade	Voorhees	NJ	532		2,052		285		532		2,337		2,869		1,476		1988	1997	(c)
920 North King Street	Wilmington	DE	6,141		21,140		8,037		6,141		29,177		35,318		15,938		1989	2004	(c)
300 Delaware Avenue	Wilmington	DE	6,369		13,739		2,468		6,369		16,207		22,576		9,731		1989	2004	(c)
	Total:		$	365,011	$	2,472,362	$	635,229	$	410,144	$	3,062,458	$	3,472,602	$	957,450

Reconciliation of Real Estate:

The following table reconciles the real estate investments from January 1, 2019 to December 31, 2021 (in thousands):

	2021		2020		2019
Balance at beginning of year	$	3,474,109	$	4,006,459	$	3,951,719
Additions:
Acquisitions	—		9,722		—
Capital expenditures and assets placed into service	134,931		113,221		145,378
Less:
Dispositions/impairments/placed into redevelopment	(82,247)		(619,086)		(50,792)
Retirements	(54,191)		(36,207)		(39,846)
Balance at end of year	$	3,472,602	$	3,474,109	$	4,006,459
Per consolidated balance sheet	$	3,472,602	$	3,474,109	$	4,006,459

The aggregate cost for federal income tax purposes is $3.1 billion as of December 31, 2021.

(b)Reconciliation of Accumulated Depreciation:

The following table reconciles the accumulated depreciation on real estate investments from January 1, 2019 to December 31, 2021 (in thousands):

	2021		2020		2019
Balance at beginning of year	$	896,561	$	973,318	$	885,407
Additions:
Depreciation expense	136,171		138,822		144,131
Less:
Dispositions/impairments/placed into redevelopment	(24,440)		(182,526)		(16,783)
Retirements	(50,842)		(33,053)		(39,437)
Balance at end of year	$	957,450	$	896,561	$	973,318
Per consolidated balance sheet	$	957,450	$	896,561	$	973,318

(c)Depreciation of the buildings and improvements are calculated over lives ranging from the life of the lease to 55 years.

(d)Land value represents unamortized prepaid ground lease.

(e)Reflects original construction date. Significant improvements were made to 3000 Market Street in 1988 and to The Bulletin Building in 2012.

(f)Represent leasehold interests in land parcels acquired through prepaid 99-year ground leases. Development has not yet commenced on the parcel. Building and improvements represent costs related to parking operations.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The Company consolidates variable interest entities (“VIEs”) in which it is considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct those matters that most significantly impact the activities of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. For entities that the Company has the obligations to fund losses, its maximum exposure to loss is not limited to the carrying amount of its investments.

The Company continuously assesses its determination of the primary beneficiary for each entity and assesses reconsideration events that may cause a change in the original determinations.When an entity is not deemed to be a VIE, the Company consolidates entities for which it has significant decision making control over the entity’s operations. The Company’s judgment with respect to its level of influence or control of an entity involves consideration of various factors including the form of the Company’s ownership interest, its representation in the entity’s governance, the size of its investment (including loans), estimates of future cash flows, its ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to replace the Company as manager and/or liquidate the venture, if applicable. The Company’s assessment of its influence or control over an entity affects the presentation of these investments in the Company’s consolidated financial statements. In addition to evaluating control rights, the Company consolidates entities in which the outside partner has no substantive kick-out rights to remove the Company as managing member. The portion of the consolidated entities that are not owned by the Company is presented as noncontrolling interest as of and during the periods consolidated. All intercompany transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("US GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Operating Properties

Operating Properties

Operating properties are carried at historical cost less accumulated depreciation and impairment losses. The value of operating properties reflects their purchase price or development cost. Acquisition costs related to business combinations are expensed as incurred, whereas the costs related to asset acquisitions are capitalized as incurred. Costs incurred for the renovation and betterment of an operating property are capitalized to the Company’s investment in that property. Ordinary repairs and maintenance are expensed as incurred.

Purchase Price Allocation

Purchase Price Allocation

For acquisitions of real estate or in-substance real estate that are accounted for as business combinations, we recognize the assets acquired (including the intangible value of acquired above- or below-market leases, acquired in-place leases and tenant relationship values), liabilities assumed, noncontrolling interests, and previously existing ownership interests at fair value as of the acquisition date. Any excess (deficit) of the consideration transferred relative to the fair value of the net assets acquired is accounted for as goodwill (bargain purchase gain). Acquisition costs related to business combinations are expensed as incurred.

Acquisitions of real estate and in-substance real estate that do not meet the definition of a business are accounted for as asset acquisitions. The Company generally expects that acquisitions of real estate or in-substance real estate will not meet the definition of business and therefore are accounted for as asset acquisitions, unless specifically noted otherwise. The accounting model for asset acquisitions is similar to the accounting model for business combinations except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in recognition of goodwill or a bargain purchase gain. Additionally, because the accounting model for asset acquisitions is a cost accumulation model, preexisting interests in the acquired assets, if any, are not remeasured to fair value but continue to be accounted for at their historical cost. Direct acquisition costs are capitalized if an asset acquisition is probable. If we determine that an asset acquisition is no longer probable, no new costs are capitalized and all capitalized costs that are not recoverable are written off.

The purchase price is allocated to the acquired assets and assumed liabilities, including land and buildings, as if vacant based on highest and best use for the acquired assets. The Company assesses and considers fair value of the operating properties based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

The Company allocates the purchase price of properties considered to be business combinations and asset acquisitions to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Company’s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancellable term of the lease (including the below market fixed renewal periods that are considered probable, if applicable). Capitalized above-market lease values are amortized as a reduction of rental income over the remaining noncancellable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining noncancellable terms of the respective leases, including any below market fixed-rate renewal option periods that are considered probable.

Other intangible assets also include in-place leases based on the Company’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods. Factors considered by the Company in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance, and other operating expenses, and estimates of lost rents at market rates during the expected lease-up periods, which primarily range from four to twelve months. The Company also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing, and leasing activities in estimating the fair value of the tangible and intangible assets acquired. The Company also uses the information obtained as a result of its pre-acquisition due diligence as part of its consideration of the accounting standard governing asset retirement obligations and when necessary, will record a conditional asset retirement obligation as part of its purchase price. The Company also evaluates tenant relationships on a tenant-specific basis. On most of the Company’s acquisitions, this intangible has not been material and, as a result, no value has been assigned.

In the event that a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values and tenant relationship values, is charged to expense and market rate adjustments (above or below) are recorded to revenue.

Depreciation and Amortization

Depreciation and Amortization

The costs of buildings and improvements are depreciated using the straight-line method based on the following useful lives: buildings and improvements (5 to 55 years) and tenant improvements (the shorter of (i) the life of the asset (1 to 16 years) or (ii) the lease term).

Construction-in-Progress

Construction-in-ProgressProject costs directly associated with the development or redevelopment and construction of a real estate project are capitalized as construction-in-progress. Construction-in-progress also includes costs related to ongoing tenant improvement projects. In addition, interest, real estate taxes, and other expenses that are directly associated with the Company’s development or redevelopment activities are capitalized beginning when activities necessary to ready the asset for its intended use are in progress and capital expenditures have been made and ending when the property is placed in service. Interest expense is capitalized using the Company’s weighted average interest rate. Internal direct costs are capitalized to projects in which qualifying expenditures are being incurred.

Ground Leases

Ground Leases

The Company is the lessee under long-term ground leases classified as operating leases. The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilizes a market-based approach to estimate the IBR for each individual lease. The base IBR is estimated utilizing observable mortgage and corporate bond rates, which are then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease.

The right of use assets and lease liabilities are presented as “Right of use asset - operating leases, net” and “Lease liability - operating leases”, respectively, on the consolidated balance sheet as of December 31, 2021 and 2020, respectively. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations.

The most recent CPI adjustment is used to determine the present value of the lease payments for an indexed lease and ultimately the right of use asset and corresponding lease liability. Rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs.

Impairment of Real Estate Investments

Impairment of Real Estate Investments

The Company reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company updates leasing and other assumptions regularly, paying particular attention to real estate investments where there is an event or change in circumstances that indicates an impairment in value. Additionally, the Company considers strategic decisions regarding the future development plans for real estate investment under development and other market factors. For real estate investments to be held and used, the Company analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets over, in most cases, a 10-year hold period. If there is significant possibility that the Company will dispose of assets earlier, it analyzes the recoverability using a probability weighted analysis of the undiscounted future cash flows expected to be generated from the operations and eventual disposition of each asset using various probable hold periods. If the recoverability analysis indicates that the carrying value of the tested real estate investment is not recoverable, the real estate investment is written down to its fair value and an impairment is recognized in the amount of the excess of the carrying amount of the asset over its fair value. If and when the Company’s plans change, it revises its recoverability analysis to use cash flows expected from operations and eventual disposition of each asset using hold periods that are consistent with its revised plans.

Estimated future cash flows used in such analysis are based on the Company’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to market rental rates, capitalization rates, and recent sales data for comparable real estate investments. Future cash flows are discounted when

determining fair value of an asset. Most of these assumptions are influenced by our direct experience with the real estate investments and their markets as well as market data obtained from real estate leasing and brokerage firms.

Assets Held for Sale

Assets Held for Sale

The Company generally reclassifies assets to held for sale when the transaction has been approved by its Board of Trustees, or by officers vested with authority to approve the transaction, and there are no known significant contingencies relating to the sale of the real estate investment within one year of the consideration date and the consummation of the transaction is otherwise considered probable. When a real estate investment is designated as held for sale, the Company stops depreciating the real estate investment and estimates the real estate investment’s fair value, net of selling costs. If the determination is made that the estimated fair value, net of selling costs, is less than the net carrying value of the real estate investment, an impairment is recognized, reducing the net carrying value of the real estate investment to estimated fair value less selling costs. For periods in which a real estate investment is classified as held for sale, the Company classifies the assets and liabilities, as applicable, of the real estate investment as held for sale on the consolidated balance sheet for such periods.

Impairment of Land Held for Development

Impairment of Land Held for Development

When demand for build-to-suit properties declines and the ability to sell land held for development deteriorates, or other market factors indicate possible impairment in the recoverability of land held for development, it is reviewed for impairment by comparing its fair value to its carrying value. If the estimated sales value is less than the carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is generally determined using a market valuation approach, comparing the subject property to recent comparable market transactions in a similar location; or using estimated cash flows.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company maintains cash equivalents in money market accounts with financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. The Company does not invest its available cash balances in money market funds. As such, available cash balances are appropriately reflected as cash and cash equivalents on the consolidated balance sheets.

Restricted Cash

Restricted Cash

Restricted cash consists of cash held as collateral to provide credit enhancement for the Company’s mortgage debt, cash for property taxes, capital expenditures and tenant improvements. Restricted cash also includes cash held by qualified intermediaries for possible investments in like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code in connection with sales of the Company’s properties. Restricted cash is included in “Other assets” in the consolidated balance sheets.

Accounts Receivable And Accrued Rent Receivable

Accounts Receivable and Accrued Rent Receivable

Generally, leases with tenants are accounted for as operating leases. Minimum lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payment terms are recorded as “Accrued rent receivable, net” on the consolidated balance sheets. Included in current tenant receivables are tenant reimbursements which are comprised of amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses that are recognized as revenue in the period in which the related expenses are incurred.

Accrued rent receivables are carried net of the allowances for doubtful accounts. The allowance for doubtful accounts is an estimate based on the Company's experience of the probability of future events confirming a loss and represents the estimated probable losses. The allowance is generally calculated by assigning risk factors by industry which are primarily based on the Company's historical collection and charge-off experience adjusted for current market conditions, which requires management's judgment.

Investments in Unconsolidated Real Estate Ventures

Investments in Unconsolidated Real Estate Ventures

Under the equity method, investments in real estate ventures are recorded initially at cost and subsequently adjusted for equity in earnings, contributions, distributions, and impairments. The Company generally allocates income and losses from the unconsolidated real estate ventures based on the venture's distribution priorities, which may be different from its stated ownership percentage. For real estate ventures that are constructing assets to commence planned principal operations, the Company capitalizes interest expense to the extent that it is recoverable using the Company’s weighted average interest rate of consolidated debt and its investment balance as a basis. Planned principal operations commence when a property is available to lease and at that point in time, the Company ceases capitalizing interest to its investment basis.

At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Company’s investments in real estate ventures. An investment is other than temporarily impaired only if the fair value of the investment in a real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. To the extent that an other than temporary impairment has occurred, an impairment charge is recorded in the amount of the excess of the carrying amount of the investment over the estimated fair value. Management is required to make significant judgments about the estimated fair value of its investments to determine if an impairment exists. Fair value is generally determined through income valuation approaches, including discounted cash flows and direct capitalization models.

When the Company acquires an interest in or contributes assets to a real estate venture project, the difference between the Company’s cost basis in the investment and the value of the real estate venture or asset contributed is amortized over the life of the related assets, intangibles, and liabilities and such adjustment is included in the Company’s share of equity in income of unconsolidated real estate ventures.

Deferred Costs

Deferred Costs

Certain costs incurred in connection with property leasing are capitalized as deferred leasing costs. Deferred leasing costs consist primarily of third-party and internal leasing commissions that are amortized using the straight-line method over the life of the respective lease which generally ranges from 1 to 16 years. Management re-evaluates the remaining useful lives of leasing costs in conjunction with changes in the respective lease term.

Notes Receivable

Notes Receivable

The Company accounts for notes receivable on its balance sheet at amortized cost, net of allowance for loan losses. Interest income is recognized over the term of the notes receivable and is calculated based on the contractual terms of each note agreement. At inception and on a quarterly basis, the Company evaluates notes receivable for the current estimate of expected credit losses over the contractual term using a probability-of-default method and reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses to reflect management's current estimate. Management considers performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor in its evaluation.

Notes receivable are placed on nonaccrual status when management determines, after considering economic and business conditions and collection efforts, that the loans are impaired, or collection of interest is doubtful. Uncollectible interest previously accrued is recognized as bad debt expense. Interest income on nonaccrual loans is recognized only to the extent that cash payments are received.

Deferred Financing Costs

Deferred Financing Costs

Costs incurred in connection with debt financing are capitalized as a direct deduction from the carrying value of the debt, except for costs capitalized related to the Company’s unsecured credit facility, which are capitalized within the “Deferred costs, net” caption on the accompanying consolidated balance sheets. Deferred financing costs are charged to interest expense over the terms of the related debt agreements. Deferred financing costs consist primarily of loan fees which are amortized over the related loan term on a basis that approximates the effective interest method. Deferred financing costs are accelerated, when debt is extinguished, as part of the “Interest expense-amortization of deferred financing costs” caption within the Company’s consolidated statements of operations. Original issue discounts are recognized as part of the gain or loss on extinguishment of debt, as appropriate.

Revenue Recognition

Revenue Recognition

Rental Revenue

The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. The operating leases have various expiration dates. As of December 31, 2021 and 2020, the Company did not have any leases classified as direct-financing or sales-type leases.

Fixed lease payments under tenant leases, determined to be collectible, are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based.

Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis.

The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded an improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term.

For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are generally recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term.

The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and included in the "Rents" caption within the Company's consolidated statements of operations.

Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract.

Point of Sale Revenue

Point of sale revenue consists of parking, restaurant, and flexible stay revenue from the Company’s hotel operations. Point of sale service obligations are performed daily, and the customer obtains control of those services simultaneously as they are performed. Accordingly, revenue is recorded on an accrual basis as it is earned, coinciding with the services that are provided to the Company’s customers. Parking and flexible stay revenue is recognized within rents and restaurant income is recognized within other income on the consolidated statements of operations.

Third party management fees, labor reimbursement, and leasing

The Company performs property management services for its managed real estate ventures and third-party property owners of real estate that consist of: (i) providing leasing services, (ii) property inspections, (iii) repairs and maintenance monitoring, and (iv) financial and accounting oversight. For these services, the Company earns management fees monthly, which are based on a fixed percentage of each managed property’s financial results, and is reimbursed for the labor costs incurred by its property management employees as services are rendered to the property owners. The Company determined that control over the services is passed to its customers simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to the Company’s customers.

Lease commissions are earned when the Company, as a broker for the third party property owner, executes a lease agreement with a tenant. Based on the terms of the Company’s lease commission contracts, the Company's performance obligation to the customer has been completed upon execution of each lease agreement. The Company’s lease commissions are earned based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component.

Development fee revenue is earned through two different sources: (i) the Company performs development services for third parties as an agent and earns fixed development fees based on a percentage of construction costs incurred over the construction period, and (ii) the Company acts as a general contractor on behalf of one of its managed real estate ventures. The Company acts as the principal construction company for the real estate ventures and records gross revenue as it provides construction services based on the quantifiable construction outputs.

In applying the cost based output method of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine its progress towards contract completion and to calculate the corresponding gross revenue and gross profit to recognize. For any costs that do not contribute to satisfying the Company’s performance obligations, it excludes such costs from its output methods of revenue recognition as the amounts are not reflective of transferring control of the outputs to the customer. The use of estimates in this calculation involves significant judgment.

Income Taxes

Income Taxes

Parent Company

The Parent Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to continue to qualify as a REIT, the Parent Company is required to, among other things, distribute at least 90% of its annual REIT taxable income to its shareholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Parent Company is not subject to federal and state (in states that follow federal rules) income taxes with respect to the portion of its income that meets certain criteria and is distributed annually to its shareholders. Accordingly, a nominal provision for federal and state (as applicable) income taxes is included in the accompanying consolidated financial statements with respect to the operations of the Parent Company. The Parent Company intends to continue to operate in a manner that allows it to meet the requirements for taxation as a REIT. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state (as applicable) income taxes and may not be able to qualify as a REIT for the four tax years following the year in which it first failed to qualify. The Parent Company is subject to certain local income taxes. Provision for federal income taxes is recorded in the income tax provision line item and state and local income taxes have been included in operating expenses in the Parent Company’s consolidated statements of operations.

The Parent Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Parent Company’s ordinary income and (b) 95% of the Parent Company’s net capital gain exceeds cash distributions and certain taxes paid by the Parent Company. No excise tax was incurred in 2021, 2020 or 2019.

The Parent Company has elected to treat several of its subsidiaries as taxable REIT subsidiaries (each a “TRS”). A TRS is subject to federal, state and local income tax. In general, a TRS may perform non-customary services for tenants, hold assets that the Parent Company, as a REIT, cannot hold directly and generally may engage in any real estate or non-real estate related business. The Company’s taxable REIT subsidiaries did not have material tax provisions or deferred income tax items as of December 31, 2021 and December 31, 2020.

Operating Partnership

In general, the Operating Partnership is not subject to federal and state income taxes, and accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. The partners of the Operating Partnership are required to include their respective share of the Operating Partnership’s profits or losses in their respective tax returns. The Operating Partnership’s tax returns and the amount of allocable partnership profits and losses are subject to examination by federal and state taxing authorities. For any year beginning on or after January 1, 2017, the Operating Partnership can be assessed with federal income tax in the course of an audit by the IRS. Under the partnership audit rules included in the Bipartisan Budget Act of 2015, the Operating Partnership has the option to make a push-out election and allocate the partnership adjustments to all the former partners for the tax year under audit.

The Operating Partnership may elect to treat a subsidiary REIT under Sections 856 through 860 of the Code, if applicable. Each subsidiary REIT would be required to meet the requirements for treatment as a REIT under Sections 856 through 860 of the Code. If a subsidiary REIT fails to qualify as a REIT in any taxable year, that subsidiary REIT would be subject to federal and state income taxes and would not be able to qualify as a REIT for the four subsequent taxable years. Also, each subsidiary REIT would be subject to certain local income taxes.

The Operating Partnership has elected to treat several of its subsidiaries as TRSs, which are subject to federal, state and local income tax.

Earnings Per Share

Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders, as adjusted for unallocated earnings, if any, of certain securities, by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur from common shares issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options, and conversion of the noncontrolling interests in the Operating Partnership. Anti-dilutive shares are excluded from the calculation.

Earnings Per Unit

Basic earnings per unit is computed by dividing net income available to common unitholders, as adjusted for unallocated earnings, if any, of certain securities issued by the Operating Partnership, by the weighted average number of common unit equivalents outstanding during the year. Diluted earnings per unit reflects the potential dilution that could occur from units issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options. Anti-dilutive units are excluded from the calculation.

Share-Based Compensation Plans

Share-Based Compensation PlansThe Parent Company maintains a shareholder-approved equity-incentive plan known as the Amended and Restated 1997 Long-Term Incentive Plan (the “1997 Plan”). The 1997 Plan is administered by the Compensation Committee of the Parent Company’s Board of Trustees. Under the 1997 Plan, the Compensation Committee is authorized to award equity and equity-based awards, including incentive stock options, non-qualified stock options, restricted share rights and performance-based share units.

Comprehensive Income

Comprehensive Income

Comprehensive income is recorded in accordance with the provisions of the accounting standard for comprehensive income. The accounting standard establishes standards for reporting comprehensive income and its components in the financial statements. Comprehensive income includes the effective portions of changes in the fair value of derivatives.

Accounting for Derivative Instruments and Hedging Activities

Accounting for Derivative Instruments and Hedging Activities

The Company accounts for its derivative instruments and hedging activities in accordance with the accounting standard for derivative and hedging activities. The accounting standard requires the Company to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them on the balance sheet as either an asset or liability. See disclosures below related to the accounting standard for fair value measurements and disclosures.

For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income while the ineffective portions are recognized in earnings.

The Company actively manages its ratio of fixed-to-floating rate debt. To manage its fixed and floating rate debt in a cost-effective manner, the Company, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts.

Fair Value Measurements

Fair Value Measurements

The Company estimates the fair value of its derivatives in accordance with the accounting standard for fair value measurements and disclosures. The accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:

•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access;

•Level 2 inputs are inputs, other than quoted prices included in Level 1, which are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and

•Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little if any, related market activity or information.

In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

Non-financial assets and liabilities recorded at fair value on a non-recurring basis include non-financial assets and liabilities measured at fair value in a purchase price allocation and the impairment. The fair values assigned to the Company's purchase price allocations primarily utilize Level 3 inputs. The fair value assigned to the long-lived assets and equity method investments for which there was impairment recorded utilize Level 3 inputs

Risks And Uncertainties - COVID-19

Risks and Uncertainties - COVID-19

Currently, one of the most significant risks and uncertainties the Company faces is the potential adverse effect of the ongoing global COVID-19 pandemic, which has significantly slowed global economic activity and caused significant volatility in financial markets, causing many to fear a global recession. The responses of many countries, including the U.S., have included mandatory quarantines, restrictions on business activities, including construction activities, restrictions on group gatherings, restrictions on travel and mandatory closures. These actions have disrupted the global economy and supply chains and adversely impacted many industries, including owners and developers of real estate. Moreover, there is significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. economy and consumer confidence. Demand for space at the Company's properties is dependent on a variety of macroeconomic factors, such as employment levels, interest rates, changes in stock market valuations, rent levels and availability of competing space. The extent to which the COVID-19 pandemic impacts the Company's results will depend on

future developments, many of which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19, future action plans, and vaccination efforts. The COVID-19 pandemic has caused continued negative economic impacts, market volatility, and business disruption, which could negatively impact the Company's tenants’ ability to pay rent, the Company's ability to lease vacant space, and the Company's ability to complete development and redevelopment projects. These consequences, in turn, could materially impact the Company's results of operations.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur.

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ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP (Tables)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Core Portfolio of Operating Properties and Excludes Development, Redevelopment and Held for Sale

The Company’s core portfolio of operating properties (the “Core Properties”) excludes development properties, redevelopment properties, and properties held for sale. The Properties were comprised of the following as of December 31, 2021:

	Number of Properties	Rentable Square Feet
Office properties	72	12,097,300
Mixed-use properties	5	942,334
Core Properties	77	13,039,634
Development property	1	205,803
Redevelopment properties	3	432,699
The Properties	81	13,678,136

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Disaggregation of Revenue

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2021 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	149,441	$	113,748	$	62,545	$	12,410	$	8,020	$	(2,240)	$	343,924
Variable rent	41,585		10,358		34,850		646		2,660		(257)		89,842
Total lease revenue	191,026		124,106		97,395		13,056		10,680		(2,497)		433,766
Amortization of deferred market rents	2,064		(9)		3,322		—		—		—		5,377
Daily parking & hotel flexible stay	11,758		159		109		117		233		—		12,376
Total rents	204,848		124,256		100,826		13,173		10,913		(2,497)		451,519
Third party management fees, labor reimbursement and leasing	893		34		452		6,548		3,077		15,440		26,444
Other income	2,117		276		402		144		25		5,892		8,856
Total revenue	$	207,858	$	124,566	$	101,680	$	19,865	$	14,015	$	18,835	$	486,819

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2020 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	166,286	$	128,044	$	63,366	$	29,830	$	8,064	$	(2,412)	$	393,178
Variable rent	51,410		12,951		35,123		3,544		2,401		(1,343)		104,086
Total lease revenue	217,696		140,995		98,489		33,374		10,465		(3,755)		497,264
Amortization of deferred market rents	1,146		(12)		3,531		—		203		—		4,868
Daily parking & hotel flexible stay	10,777		179		49		135		232		—		11,372
Total rents	229,619		141,162		102,069		33,509		10,900		(3,755)		513,504
Third party management fees, labor reimbursement and leasing	927		39		689		6,541		2,560		7,824		18,580
Other income	1,482		412		224		173		9		468		2,768
Total revenue	$	232,028	$	141,613	$	102,982	$	40,223	$	13,469	$	4,537	$	534,852

The following is a summary of revenue earned by the Company’s reportable segments (see Note 19, ''Segment Information,” for further information) during the year ended December 31, 2019 (in thousands):

	Philadelphia CBD		Pennsylvania Suburbs		Austin, Texas		Metropolitan Washington, D.C.		Other		Corporate (a)		Total
Fixed rent	$	178,481	$	125,969	$	62,232	$	39,420	$	7,834	$	(2,412)	$	411,524
Variable rent	58,580		14,282		34,748		4,029		3,080		(495)		114,224
Total lease revenue	237,061		140,251		96,980		43,449		10,914		(2,907)		525,748
Amortization of deferred market rents	3,745		(12)		4,638		—		486		—		8,857
Daily parking & hotel flexible stay	18,665		174		165		824		232		—		20,060
Total rents	259,471		140,413		101,783		44,273		11,632		(2,907)		554,665
Third party management fees, labor reimbursement and leasing	876		43		1,956		6,922		2,915		6,914		19,626
Other income	3,422		628		418		303		11		1,344		6,126
Total revenue	$	263,769	$	141,084	$	104,157	$	51,498	$	14,558	$	5,351	$	580,417

(a)Corporate includes intercompany eliminations necessary to reconcile to consolidated Company totals.

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REAL ESTATE INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Real Estate [Abstract]

Gross Carrying Value of Operating Properties

As of December 31, 2021 and 2020, the gross carrying value of the operating properties was as follows (in thousands):

	December 31, 2021		December 31, 2020
Land	$	410,144	$	407,514
Building and improvements	2,653,492		2,665,232
Tenant improvements	408,966		401,363
Total	$	3,472,602	$	3,474,109

Capitalized Construction Costs

The following table shows the amount of compensation costs (including bonuses and benefits) capitalized for the years presented (in thousands):

	December 31,
	2021		2020		2019
Development	$	4,815	$	4,802	$	3,047
Redevelopment	1,170		543		775
Tenant Improvements	1,917		3,021		3,609
Total	$	7,902	$	8,366	$	7,431

Schedule of Acquisitions

The following table summarizes the property acquisitions during the year ended December 31, 2020 (dollars in thousands):

Property/Portfolio Name	Acquisition Date	Location	Property Type	Rentable Square Feet/Acres	Purchase Price (a)
145 King of Prussia Road	February 27, 2020	Radnor, PA	Land	7.75 acres	$	11,250
1505-11 Race Street	November 5, 2020	Philadelphia, PA	Office	119,763	$	9,700
250 King of Prussia Road (b)	November 30, 2020	Radnor, PA	Office	169,843	$	20,250

(a)Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties.

(b)This property was placed into redevelopment and is therefore included within Construction-in-progress on the consolidated balance sheets.

Schedule of Asset Acquisition

The acquisition values have been allocated as follows (in thousands):

	1505-11 Race Street
Building, land and improvements	$	9,723
Intangible assets acquired	2,422
Below market lease liabilities assumed	(2,193)
Total unencumbered acquisition value	9,952
Amortization period of intangible assets	1.5 years
Amortization period of below market liabilities assumed	1.5 years

Summary of Properties Sold

The following table summarizes the property dispositions during the years ended December 31, 2021, 2020 and 2019 (dollars in thousands):

Property/Portfolio Name	Disposition Date	Location	Property Type	Rentable Square Feet/Acres	Sales Price		Gain/(Loss) on Sale (a)
1100 Lenox Drive	September 8, 2021	Lawrenceville, NJ	Land	5.0 acres	$	2,575	$	68
2100-2200 Lenox Drive	July 6, 2021	Lawrenceville, NJ	Land	35.2 acres	$	8,900	$	842
Mid-Atlantic Office Portfolio (b) (d)	December 21, 2020	Various	Office	1,128,645	$	192,943	$	15,164
One and Two Commerce Square (c)	July 21, 2020	Philadelphia, PA	Office	1,896,142	$	115,000	$	271,905
Keith Valley	June 15, 2020	Horsham, PA	Land	14.0 Acres	$	4,000	$	201
52 East Swedesford Road	March 19, 2020	Malvern, PA	Office	131,077	$	18,000	$	2,336
1900 Gallows Rd	September 11, 2019	Vienna, VA	Office	210,632	$	36,400	$	(367)
9 Presidential Boulevard	March 15, 2019	Bala Cynwyd, PA	Land	2.7 Acres	$	5,325	$	751

(a)Gain/(Loss) on Sale is net of closing and other transaction related costs.

(b)The Company sold a 60% equity interest in a portfolio of twelve suburban office properties containing an aggregate of 1.1 million square feet ("Mid-Atlantic Office Portfolio"), nine of which are located in the Pennsylvania suburbs and three of which are located in Maryland, to an unrelated third party for a gross sales price of $192.9 million. The transaction resulted in deconsolidation of the properties and formation of PA/MD NNN Office JV, LLC ("Mid-Atlantic Office JV"). The Company recorded its investment at fair value and recognized a gain of $15.2 million in "Net gain on disposition of real estate" on the consolidated statements of operations. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

(c)The Company sold a 30% preferred equity interest in two office buildings located in Philadelphia, Pennsylvania, to an unrelated third party for $115.0 million (the "Commerce Square Venture Transaction"), which resulted in deconsolidation of the properties and formation of Brandywine Commerce I LP and Brandywine Commerce II LP (collectively, the "Commerce Square Venture"). The transaction valued the properties at $600.0 million. The Company recorded its investment at fair value and recognized a gain of $271.9 million in "Net gain on disposition of real estate" on the consolidated statements of operations. See Note 4, ''Investment in Unconsolidated Real Estate Ventures," for further information.

(d)The sales price includes $4.1 million of variable consideration held in escrow that will be released to the Company over a six to nine month holdback period if certain tenants remain in compliance with certain payment terms of their lease agreements. The Company estimated the amount of the variable consideration that it deemed probable of collection and included such amount in the transaction price. The amount estimated as probable of collection was received during 2021. The Company will continue to evaluate the probability of collection on the remaining holdback and recognize any changes to the amount deemed probable as incremental gain on sale.

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES (Tables)

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Summary of Financial Position of Real Estate Ventures

The Company’s investment in the unconsolidated real estate ventures as of December 31, 2021 and 2020, and the Company’s share of the unconsolidated real estate ventures’ income (loss) for the years ended December 31, 2021 and 2020 was as follows (in thousands):

	Ownership Percentage	Carrying Amount				Company's Share of unconsolidated real estate venture Income (Loss)					Unconsolidated Real Estate Venture Debt at 100%, gross
		2021		2020		2021		2020		2019	2021		2020
Office Properties
Commerce Square Venture	70% (a)	$	247,798	$	253,128	$	(15,501)	$	(9,150)	—	$	213,069	$	219,168
Mid-Atlantic Office Venture	40% (a)	31,680		32,996		932		96		—	123,015		120,831
Brandywine - AI Venture LLC	50%	—		10,302		(721)		185		(2,800)	—		—
Herndon Innovation Center Metro Portfolio Venture, LLC	15%	15,844		16,019		(174)		(358)		(498)	207,302		207,302
MAP Venture	50%	(24,396)		(11,516)		(8,683)		(6,570)		(6,102)	184,263		185,000
PJP VII	25% (b)	—		—		—		—		190	—		—
PJP II	30% (b)	—		—		—		—		81	—		—
PJP VI	25% (b)	—		—		—		—		(185)	—		—
Other
4040 Wilson Venture (c)	50%	31,059		34,454		(2,258)		(2,162)		(368)	145,000		141,857
1919 Venture	50%	13,791		15,434		427		59		328	88,860		88,860
Development Properties
3025 JFK Venture	55%	56,370		—		(118)		—		—	—		—
JBG - 51 N Street (c)	70%	21,213		21,237		(402)		(457)		(313)	—		—
JBG - 1250 First Street Office (c)	70%	17,751		17,757		(199)		(227)		(255)	—		—
		$	411,110	$	389,811	$	(26,697)	$	(18,584)	(9,922)	$	961,509	$	963,018

(a)Ownership percentage represents the Company’s combined interest including preferred and common equity holdings. See "Commerce Square Venture" and "Mid-Atlantic Office JV" sections below for more information.

(b)On October 29, 2019, the Company sold its interest in PJP II, PJP VI and PJP VII. See "PJP Ventures" section below for more information on the disposal.

(c)This entity is a VIE.

The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of December 31, 2021 and December 31, 2020 (in thousands):

	December 31, 2021		December 31, 2020
Net property	$	1,563,263	$	1,520,804
Other assets	434,687		488,805
Other liabilities	331,947		333,049
Debt, net	956,668		956,688
Equity (a)	709,335		719,872

(a)This amount does not include the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level.

Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss)

The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the twelve-month periods ended December 31, 2021, 2020 and 2019 (in thousands):

	Year Ended December 31,
	2021		2020		2019
Revenue	$	214,792	$	150,276	$	132,358
Operating expenses	(117,273)		(85,812)		(71,784)
Interest expense, net	(30,569)		(22,661)		(21,908)
Depreciation and amortization	(97,147)		(70,805)		(53,331)
Provision for impairment	(1,393)		—		(5,664)
Loss on early extinguishment of debt	—		—		(1,231)
Net loss	$	(31,590)	$	(29,002)	$	(21,560)
Ownership interest %	Various		Various		Various
Company's share of net loss	$	(25,972)	$	(18,540)	$	(9,865)
Basis adjustments and other	(725)		(44)		(57)
Equity in loss of unconsolidated real estate ventures	$	(26,697)	$	(18,584)	$	(9,922)

Schedule of Maturities of Long-term Debt

As of December 31, 2021, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands):

2022	$	8,543
2023	477,649
2024	330,317
2025	—
2026	145,000
Thereafter	—
Total principal payments	961,509
Net deferred financing costs	(5,923)
Net original issue premium	1,082
Outstanding indebtedness	$	956,668

As of December 31, 2021, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands):

2022	$	273,000
2023	350,000
2024	350,000
2025	—
2026	—
Thereafter	878,610
Total principal payments	1,851,610
Net unamortized premiums/(discounts)	8,187
Net deferred financing costs	(6,211)
Outstanding indebtedness	$	1,853,586

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LEASES (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Operating Lease Future Contractual Lease Payments

The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2021 are as follows (in thousands):

Year
2022	$	328,553
2023	327,981
2024	304,240
2025	274,216
2026	249,045
Thereafter	952,898

Lease Costs

The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands):

	Year Ended December 31,
Lease Cost	2021			2020
Fixed lease cost	$	2,100		$	2,100
Variable lease cost	43			45
Total	$	2,143		$	2,145
Weighted-average remaining lease term (years)	55.2			55.9
Weighted-average discount rate	6.3		%	6.3		%

Operating Lease Liability Maturities

Lease payments on noncancellable leases at December 31, 2021 are as follows (in thousands):

Year	Minimum Rent
2022	$	1,248
2023	1,263
2024	1,305
2025	1,321
2026	1,338
Thereafter	107,793
Total lease payments	$	114,268
Less: Imputed interest	91,306
Present value of operating lease liabilities	$	22,962

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DEFERRED COSTS (Tables)

12 Months Ended

Dec. 31, 2021

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

As of December 31, 2021 and 2020, the Company’s deferred costs were comprised of the following (in thousands):

	December 31, 2021
	Total Cost		Accumulated Amortization		Deferred Costs, net
Leasing costs	$	143,895	$	(57,445)	$	86,450
Financing costs - Unsecured Credit Facility	6,299		(5,887)		412
Total	$	150,194	$	(63,332)	$	86,862

	December 31, 2020
	Total Cost		Accumulated Amortization		Deferred Costs, net
Leasing costs	$	139,207	$	(55,656)	$	83,551
Financing costs - Unsecured Credit Facility	6,299		(4,994)		1,305
Total	$	145,506	$	(60,650)	$	84,856

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INTANGIBLE ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets and Liabilities

As of December 31, 2021 and 2020, the Company’s intangible assets/liabilities were comprised of the following (in thousands):

	December 31, 2021
	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease value	$	72,376	$	(44,066)	$	28,310
Tenant relationship value	167		(97)		70
Above market leases acquired	486		(310)		176
Total intangible assets, net	$	73,029	$	(44,473)	$	28,556
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired	$	27,025	$	(14,044)	$	12,981

	December 31, 2020
	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease value	$	91,552	$	(43,400)	$	48,152
Tenant relationship value	2,091		(1,938)		153
Above market leases acquired	530		(265)		265
Total intangible assets, net	$	94,173	$	(45,603)	$	48,570
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired	$	31,263	$	(12,815)	$	18,448

Summary of Amortization for Intangible Assets and Liabilities

As of December 31, 2021, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands):

	Assets		Liabilities
2022	$	9,642	$	2,588
2023	6,724		1,540
2024	4,433		1,321
2025	3,255		1,044
2026	1,195		754
Thereafter	3,307		5,734
Total	$	28,556	$	12,981

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DEBT OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Consolidated Debt Obligations

The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of December 31, 2021 and 2020 (in thousands):

	December 31, 2021		December 31, 2020		Effective Interest Rate	Maturity Date
UNSECURED DEBT
$600 million Unsecured Credit Facility	$	23,000	$	—	LIBOR + 1.10%	July 2022	(a)
Seven-Year Term Loan - Swapped to fixed	250,000		250,000		2.87%	October 2022
$350.0M 3.95% Guaranteed Notes due 2023	350,000		350,000		3.87%	February 2023
$350.0M 4.10% Guaranteed Notes due 2024	350,000		350,000		3.78%	October 2024
$450.0M 3.95% Guaranteed Notes due 2027	450,000		450,000		4.03%	November 2027
$350.0M 4.55% Guaranteed Notes due 2029	350,000		350,000		4.30%	October 2029
Indenture IA (Preferred Trust I)	27,062		27,062		LIBOR + 1.25%	March 2035
Indenture IB (Preferred Trust I)	25,774		25,774		LIBOR + 1.25%	April 2035
Indenture II (Preferred Trust II)	25,774		25,774		LIBOR + 1.25%	July 2035
Principal balance outstanding	1,851,610		1,828,610
Plus: original issue premium (discount), net	8,187		10,137
Less: deferred financing costs	(6,211)		(8,152)
Total unsecured indebtedness	$	1,853,586	$	1,830,595

(a)The Company has the ability to extend the term of the Unsecured Credit Facility until July 2023 through two successive six-month extension options.

Schedule of Maturities of Long-term Debt

As of December 31, 2021, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands):

2022	$	8,543
2023	477,649
2024	330,317
2025	—
2026	145,000
Thereafter	—
Total principal payments	961,509
Net deferred financing costs	(5,923)
Net original issue premium	1,082
Outstanding indebtedness	$	956,668

As of December 31, 2021, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands):

2022	$	273,000
2023	350,000
2024	350,000
2025	—
2026	—
Thereafter	878,610
Total principal payments	1,851,610
Net unamortized premiums/(discounts)	8,187
Net deferred financing costs	(6,211)
Outstanding indebtedness	$	1,853,586

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Financial Instruments With Fair Values Different From Their Carrying Amount

The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands):

	December 31, 2021				December 31, 2020
	Carrying Amount (a)		Fair Value		Carrying Amount (a)		Fair Value
Unsecured notes payable	$	1,502,368	$	1,588,780	$	1,502,901	$	1,607,310
Variable rate debt	$	351,218	$	344,754	$	327,694	$	308,838
Notes receivable (b)	$	44,430	$	45,230	$	94,430	$	97,372

(a)Net of deferred financing costs of $5.8 million and $7.2 million for unsecured notes payable, $0.4 million and $0.9 million for variable rate debt as of December 31, 2021 and December 31, 2020, respectively.

(b)For further detail, refer to Note 5, ''Debt and Preferred Equity Investments.”

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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2021 and December 31, 2020. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands).

Hedge Product	Hedge Type	Designation		Notional Amount				Strike		Trade Date	Maturity Date	Fair value
				12/31/2021		12/31/2020						12/31/2021		12/31/2020
Liabilities
Swap	Interest Rate	Cash Flow	(a)	$	250,000	$	250,000	2.868	%	October 8, 2015	October 8, 2022	$	(2,461)	$	(6,627)
Swap	Interest Rate	Cash Flow	(b)	—		25,774		3.300	%	December 22, 2011	January 30, 2021	—		(120)
				$	250,000	$	275,774

(a)Hedging unsecured variable rate debt.

(b)On January 30, 2021, the interest rate hedge contract for this swap expired.

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BENEFICIARIES' EQUITY OF THE PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Earnings Per Share (EPS), Basic and Diluted

The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net income attributable to noncontrolling interests	(77)		(77)		(1,799)		(1,799)		(262)		(262)
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common shareholders	$	11,868	$	11,868	$	305,117	$	305,117	$	33,871	$	33,871
Denominator
Weighted-average shares outstanding	170,878,185		170,878,185		171,926,079		171,926,079		176,132,941		176,132,941
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Weighted-average shares outstanding	170,878,185		172,273,240		171,926,079		172,317,076		176,132,941		176,686,813
Earnings per Common Share:
Net income attributable to common shareholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net (income) loss attributable to noncontrolling interests	3		3		(20)		(20)		(69)		(69)
Nonforfeitable dividends allocated to unvested restricted unitholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common unitholders	$	11,948	$	11,948	$	306,896	$	306,896	$	34,064	$	34,064
Denominator
Weighted-average units outstanding	171,770,843		171,770,843		172,907,713		172,907,713		177,114,932		177,114,932
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Total weighted-average units outstanding	171,770,843		173,165,898		172,907,713		173,298,710		177,114,932		177,668,804
Earnings per Common Partnership Unit:
Net income attributable to common unitholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

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PARTNERS' EQUITY OF THE PARENT COMPANY (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Earnings Per Share (EPS), Basic and Diluted

The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net income attributable to noncontrolling interests	(77)		(77)		(1,799)		(1,799)		(262)		(262)
Nonforfeitable dividends allocated to unvested restricted shareholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common shareholders	$	11,868	$	11,868	$	305,117	$	305,117	$	33,871	$	33,871
Denominator
Weighted-average shares outstanding	170,878,185		170,878,185		171,926,079		171,926,079		176,132,941		176,132,941
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Weighted-average shares outstanding	170,878,185		172,273,240		171,926,079		172,317,076		176,132,941		176,686,813
Earnings per Common Share:
Net income attributable to common shareholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):

	Year Ended December 31,
	2021				2020				2019
	Basic		Diluted		Basic		Diluted		Basic		Diluted
Numerator
Net income	$	12,366	$	12,366	$	307,326	$	307,326	$	34,529	$	34,529
Net (income) loss attributable to noncontrolling interests	3		3		(20)		(20)		(69)		(69)
Nonforfeitable dividends allocated to unvested restricted unitholders	(421)		(421)		(410)		(410)		(396)		(396)
Net income attributable to common unitholders	$	11,948	$	11,948	$	306,896	$	306,896	$	34,064	$	34,064
Denominator
Weighted-average units outstanding	171,770,843		171,770,843		172,907,713		172,907,713		177,114,932		177,114,932
Contingent securities/Share based compensation	—		1,395,055		—		390,997		—		553,872
Total weighted-average units outstanding	171,770,843		173,165,898		172,907,713		173,298,710		177,114,932		177,668,804
Earnings per Common Partnership Unit:
Net income attributable to common unitholders	$	0.07	$	0.07	$	1.77	$	1.77	$	0.19	$	0.19

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SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Company's Restricted Share Activity

The following table summarizes the Company’s Restricted Share Rights activity during the year-ended December 31, 2021:

	Shares	Weighted Average Grant Date Fair Value
Non-vested at January 1, 2021	488,735	$	15.19
Granted	343,179	$	12.72
Vested	(339,579)	$	15.12
Forfeited	(17,357)	$	13.55
Non-vested at December 31, 2021	474,978	$	13.51

Schedule of Restricted Performance Share Units Plan

The table below presents certain information as to unvested RPSU awards.

	RPSU Grant Date
	2/21/2019		3/5/2020		3/5/2021		Total
(Amounts below in shares, unless otherwise noted)
Non-vested at January 1, 2021	206,069		319,600		—		525,669
Granted	—		—		380,957		380,957
Units Cancelled	(3,837)		(5,545)		(6,796)		(16,178)
Non-vested at December 31, 2021	202,232		314,055		374,161		890,448
Measurement Period Commencement Date	1/1/2019		1/1/2020		1/1/2021
Measurement Period End Date	12/31/2021		12/31/2022		12/31/2023
Granted	213,728		319,600		380,957
Fair Value of Units on Grant Date (in thousands)	$	4,627	$	5,389	$	6,389

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DISTRIBUTIONS (Tables)

12 Months Ended

Dec. 31, 2021

Distributions [Abstract]

Schedule of Dividends Payable

The following table provides the tax characteristics of the 2021, 2020 and 2019 distributions paid:

	Years ended December 31,
	2021			2020			2019
	(in thousands, except per share amounts)
Common Share Distributions:
Ordinary income	$	0.64		$	0.41		$	0.62
Capital gain	0.01			0.35			—
Non-taxable distributions	0.11			—			0.14
Distributions per share	$	0.76		$	0.76		$	0.76
Percentage classified as ordinary income	83.90		%	53.90		%	81.00		%
Percentage classified as capital gain	1.20		%	46.10		%	—		%
Percentage classified as non-taxable distribution	14.90		%	—		%	19.00		%

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table details the components of accumulated other comprehensive income (loss) of the Parent Company and the Operating Partnership as of and for the three years ended December 31, 2021 (in thousands):

Parent Company	Cash Flow Hedges
Balance at January 1, 2019	$	5,029
Change in fair market value during year	(8,210)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	41
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	770
Balance at December 31, 2019	$	(2,370)
Change in fair market value during year	(5,972)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	29
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2020	$	(7,561)
Change in fair market value during year	4,817
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests	(28)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2021	$	(2,020)

Operating Partnership	Cash Flow Hedges
Balance at January 1, 2019	$	4,725
Change in fair market value during year	(8,210)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	770
Balance at December 31, 2019	$	(2,715)
Change in fair market value during year	(5,972)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2020	$	(7,935)
Change in fair market value during year	4,817
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	752
Balance at December 31, 2021	$	(2,366)

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SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Real Estate Investments, Net Operating Income and Unconsolidated Real Estate Ventures of Reportable Segments

The following tables provide selected asset information and results of operations of the Company’s reportable segments (in thousands):

Real estate investments, at cost:
	December 31, 2021		December 31, 2020
Philadelphia CBD	$	1,460,510	$	1,433,927
Pennsylvania Suburbs	866,223		871,530
Austin, Texas	778,145		728,741
Metropolitan Washington, D.C.	280,921		352,794
Other	86,803		87,117
Operating Properties	$	3,472,602	$	3,474,109
Corporate
Right of use asset - operating leases, net	$	20,313	$	20,977
Construction-in-progress	$	277,237	$	210,311
Land held for development	$	114,604	$	117,984
Prepaid leasehold interests in land held for development, net	$	27,762	$	39,185

.

Net operating income:

	Year Ended December 31,
	2021						2020						2019
	Total revenue		Operating expenses (a)		Net operating income		Total revenue		Operating expenses (a)		Net operating income (loss)		Total revenue		Operating expenses (a)		Net operating income (loss)
Philadelphia CBD	$	207,858	$	(73,695)	$	134,163	$	232,028	$	(82,505)	$	149,523	$	263,769	$	(100,219)	$	163,550
Pennsylvania Suburbs	124,566		(40,011)		84,555		141,613		(46,281)		95,332		141,084		(47,418)		93,666
Austin, Texas	101,680		(39,374)		62,306		102,982		(39,759)		63,223		104,157		(38,285)		65,872
Metropolitan Washington, D.C.	19,865		(15,386)		4,479		40,223		(20,791)		19,432		51,498		(23,455)		28,043
Other	14,015		(9,840)		4,175		13,469		(9,815)		3,654		14,558		(9,328)		5,230
Corporate	18,835		(10,005)		8,830		4,537		(6,305)		(1,768)		5,351		(7,141)		(1,790)
Operating properties	$	486,819	$	(188,311)	$	298,508	$	534,852	$	(205,456)	$	329,396	$	580,417	$	(225,846)	$	354,571

(a)Includes property operating expense, real estate taxes and third party management expense.

Unconsolidated real estate ventures:
	Investment in real estate ventures, at equity				Equity in income (loss) of real estate venture
	As of				Year ended December 31,
	December 31, 2021		December 31, 2020		2021		2020		2019
Philadelphia CBD	$	317,959	$	268,562	$	(15,191)	$	(9,090)	$	328
Metropolitan Washington, D.C.	85,867		99,769		(3,755)		(3,019)		(4,234)
Mid-Atlantic Office JV	31,680		32,996		932		96		—
MAP Venture	(24,396)		(11,516)		(8,683)		(6,571)		(6,102)
Other	—		—		—		—		86
Total	$	411,110	$	389,811	$	(26,697)	$	(18,584)	$	(9,922)

Reconciliation of Consolidated Net Income (Loss) to Consolidated NOI

The following is a reconciliation of consolidated net income (loss), as defined by GAAP, to consolidated NOI, (in thousands):

	Year Ended December 31,
	2021		2020		2019
Net income	$	12,366	$	307,326	$	34,529
Plus:
Interest expense	62,617		73,911		81,512
Interest expense - amortization of deferred financing costs	2,836		2,904		2,768
Depreciation and amortization	178,105		188,283		210,005
General and administrative expenses	30,153		30,288		32,156
Equity in loss of unconsolidated real estate ventures	26,697		18,584		9,922
Less:
Interest and investment income	8,295		1,939		2,318
Income tax (provision) benefit	(47)		224		(12)
Net gain on disposition of real estate	142		289,461		356
Net gain on sale of undepreciated real estate	2,903		201		2,020
Net gain on real estate venture transactions	2,973		75		11,639
Consolidated net operating income	$	298,508	$	329,396	$	354,571

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ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 ft² a managementCompany property parcel
Organization of The Parent Company and The Operating Partnership [Line Items]
Number of real estate properties | property	81
Area of real estate property	13,678,136
Number of management companies | managementCompany	7
Wholly Owned Properties
Organization of The Parent Company and The Operating Partnership [Line Items]
Area of real estate property	13,700,000
Parent Company
Organization of The Parent Company and The Operating Partnership [Line Items]
Area of undeveloped parcels of land | a	176.1
Area of undeveloped land held for sale | a	10.0
Area of additional undeveloped parcels of land with option to purchase | a	55.5
Total potential development capacity	13,400,000
Parent Company | Land Parcel One
Organization of The Parent Company and The Operating Partnership [Line Items]
Lease agreement term	99 years
Parent Company | Land Parcel Two
Organization of The Parent Company and The Operating Partnership [Line Items]
Lease agreement term	99 years
Parent Company | Held for Sale Properties Included in Continuing Operations
Organization of The Parent Company and The Operating Partnership [Line Items]
Total potential development capacity	100,000
Wholly-owned Management Company Subsidiaries
Organization of The Parent Company and The Operating Partnership [Line Items]
Area of real estate property	23,100,000
Wholly-owned Management Company Subsidiaries | Wholly Owned Properties
Organization of The Parent Company and The Operating Partnership [Line Items]
Area of real estate property	13,700,000
Wholly-owned Management Company Subsidiaries | Partially Owned Properties
Organization of The Parent Company and The Operating Partnership [Line Items]
Area of real estate property	9,400,000
Leashold Interest Land
Organization of The Parent Company and The Operating Partnership [Line Items]
Lease agreement term	99 years
Leashold Interest Land | Parent Company
Organization of The Parent Company and The Operating Partnership [Line Items]
Number of real estate properties | parcel	1
Undeveloped parcels of land held | a	0.8
Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	99.50%
BRSCO | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
BMH | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
BPI | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
BBL | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
BPM | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
BBS | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
BGCS | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP
Organization of The Parent Company and The Operating Partnership [Line Items]
Ownership in the operating partnership	100.00%
Unconsolidated Real Estate Ventures | Unconsolidated Properties
Organization of The Parent Company and The Operating Partnership [Line Items]
Number of real estate properties | property	9

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ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP - Summary of Core Portfolio of Operating Properties and Excludes Development, Redevelopment and Held for Sale (Details)	Dec. 31, 2021 ft² property
Real Estate Properties [Line Items]
Number of Properties | property	81
Rentable Square Feet | ft²	13,678,136
Core Properties
Real Estate Properties [Line Items]
Number of Properties | property	77
Rentable Square Feet | ft²	13,039,634
Office properties
Real Estate Properties [Line Items]
Number of Properties | property	72
Rentable Square Feet | ft²	12,097,300
Mixed-use properties
Real Estate Properties [Line Items]
Number of Properties | property	5
Rentable Square Feet | ft²	942,334
Development property
Real Estate Properties [Line Items]
Number of Properties | property	1
Rentable Square Feet | ft²	205,803
Redevelopment properties
Real Estate Properties [Line Items]
Number of Properties | property	3
Rentable Square Feet | ft²	432,699

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Change in Depreciable Lives of Real Estate Investments (Details) - Service Life $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) property	Dec. 31, 2020
Real Estate Properties [Line Items]
Number of properties that changed estimated useful lives | property	7
Property, plant, and equipment, estimated useful life	12 years	35 years
Depreciation | $	$ 9.8

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Assets	$ 3,846,196	$ 3,900,106
Liabilities	2,144,977	2,095,458
Variable Interest Entity
Variable Interest Entity [Line Items]
Assets	46,500	49,200
Liabilities	$ 21,000	$ 21,600

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Purchase Price Allocation and Depreciation and Amortization (Details)	12 Months Ended
	Dec. 31, 2021
Minimum
Construction in Progress [Line Items]
Expected lease-up periods	4 months
Minimum | Buildings and Improvements
Construction in Progress [Line Items]
Buildings and improvements useful life	5 years
Minimum | Tenant Improvements
Construction in Progress [Line Items]
Buildings and improvements useful life	1 year
Maximum
Construction in Progress [Line Items]
Expected lease-up periods	12 months
Maximum | Buildings and Improvements
Construction in Progress [Line Items]
Buildings and improvements useful life	55 years
Maximum | Tenant Improvements
Construction in Progress [Line Items]
Buildings and improvements useful life	16 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of Real Estate Assets (Details)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Disposition of assets, holding period	10 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Costs (Details)	Dec. 31, 2021
Minimum
Lessor, Lease, Description [Line Items]
Deferred cost, amortization period	1 year
Maximum
Lessor, Lease, Description [Line Items]
Deferred cost, amortization period	16 years

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Total revenue	$ 486,819	$ 534,852	$ 580,417
Rents
Disaggregation of Revenue [Line Items]
Total revenue	451,519	513,504	554,665
Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	433,766	497,264	525,748
Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	343,924	393,178	411,524
Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	89,842	104,086	114,224
Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	5,377	4,868	8,857
Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	12,376	11,372	20,060
Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	26,444	18,580	19,626
Other
Disaggregation of Revenue [Line Items]
Total revenue	8,856	2,768	6,126
Philadelphia CBD
Disaggregation of Revenue [Line Items]
Total revenue	207,858	232,028	263,769
Philadelphia CBD | Rents
Disaggregation of Revenue [Line Items]
Total revenue	204,848	229,619	259,471
Philadelphia CBD | Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	191,026	217,696	237,061
Philadelphia CBD | Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	149,441	166,286	178,481
Philadelphia CBD | Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	41,585	51,410	58,580
Philadelphia CBD | Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	2,064	1,146	3,745
Philadelphia CBD | Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	11,758	10,777	18,665
Philadelphia CBD | Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	893	927	876
Philadelphia CBD | Other
Disaggregation of Revenue [Line Items]
Total revenue	2,117	1,482	3,422
Pennsylvania Suburbs
Disaggregation of Revenue [Line Items]
Total revenue	124,566	141,613	141,084
Pennsylvania Suburbs | Rents
Disaggregation of Revenue [Line Items]
Total revenue	124,256	141,162	140,413
Pennsylvania Suburbs | Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	124,106	140,995	140,251
Pennsylvania Suburbs | Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	113,748	128,044	125,969
Pennsylvania Suburbs | Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	10,358	12,951	14,282
Pennsylvania Suburbs | Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	(9)	(12)	(12)
Pennsylvania Suburbs | Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	159	179	174
Pennsylvania Suburbs | Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	34	39	43
Pennsylvania Suburbs | Other
Disaggregation of Revenue [Line Items]
Total revenue	276	412	628
Austin, Texas
Disaggregation of Revenue [Line Items]
Total revenue	101,680	102,982	104,157
Austin, Texas | Rents
Disaggregation of Revenue [Line Items]
Total revenue	100,826	102,069	101,783
Austin, Texas | Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	97,395	98,489	96,980
Austin, Texas | Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	62,545	63,366	62,232
Austin, Texas | Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	34,850	35,123	34,748
Austin, Texas | Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	3,322	3,531	4,638
Austin, Texas | Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	109	49	165
Austin, Texas | Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	452	689	1,956
Austin, Texas | Other
Disaggregation of Revenue [Line Items]
Total revenue	402	224	418
Metropolitan Washington, D.C.
Disaggregation of Revenue [Line Items]
Total revenue	19,865	40,223	51,498
Metropolitan Washington, D.C. | Rents
Disaggregation of Revenue [Line Items]
Total revenue	13,173	33,509	44,273
Metropolitan Washington, D.C. | Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	13,056	33,374	43,449
Metropolitan Washington, D.C. | Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	12,410	29,830	39,420
Metropolitan Washington, D.C. | Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	646	3,544	4,029
Metropolitan Washington, D.C. | Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	0	0	0
Metropolitan Washington, D.C. | Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	117	135	824
Metropolitan Washington, D.C. | Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	6,548	6,541	6,922
Metropolitan Washington, D.C. | Other
Disaggregation of Revenue [Line Items]
Total revenue	144	173	303
Other
Disaggregation of Revenue [Line Items]
Total revenue	14,015	13,469	14,558
Other | Rents
Disaggregation of Revenue [Line Items]
Total revenue	10,913	10,900	11,632
Other | Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	10,680	10,465	10,914
Other | Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	8,020	8,064	7,834
Other | Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	2,660	2,401	3,080
Other | Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	0	203	486
Other | Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	233	232	232
Other | Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	3,077	2,560	2,915
Other | Other
Disaggregation of Revenue [Line Items]
Total revenue	25	9	11
Corporate
Disaggregation of Revenue [Line Items]
Total revenue	18,835	4,537	5,351
Corporate | Rents
Disaggregation of Revenue [Line Items]
Total revenue	(2,497)	(3,755)	(2,907)
Corporate | Total lease revenue
Disaggregation of Revenue [Line Items]
Total revenue	(2,497)	(3,755)	(2,907)
Corporate | Fixed rent
Disaggregation of Revenue [Line Items]
Total revenue	(2,240)	(2,412)	(2,412)
Corporate | Variable rent
Disaggregation of Revenue [Line Items]
Total revenue	(257)	(1,343)	(495)
Corporate | Amortization of deferred market rents
Disaggregation of Revenue [Line Items]
Total revenue	0	0	0
Corporate | Daily parking & hotel flexible stay
Disaggregation of Revenue [Line Items]
Total revenue	0	0	0
Corporate | Third party management fees, labor reimbursement and leasing
Disaggregation of Revenue [Line Items]
Total revenue	15,440	7,824	6,914
Corporate | Other
Disaggregation of Revenue [Line Items]
Total revenue	$ 5,892	$ 468	$ 1,344

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Billions	Dec. 31, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Tax basis of assets, cost for income tax purposes	$ 3.1	$ 2.9
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Income Tax Contingency [Line Items]
Tax basis of assets, cost for income tax purposes	$ 3.1	$ 2.9

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REAL ESTATE INVESTMENTS - Gross Carrying Value of Operating Properties (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Real Estate [Abstract]
Land	$ 410,144	$ 407,514
Building and improvements	2,653,492	2,665,232
Tenant improvements	408,966	401,363
Total	$ 3,472,602	$ 3,474,109

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REAL ESTATE INVESTMENTS - Capitalized Construction Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Internal direct construction costs capitalized related to development of properties and land holdings	$ 7,902	$ 8,366	$ 7,431
Capitalized interest	7,000	4,600	3,200
Development
Property, Plant and Equipment [Line Items]
Internal direct construction costs capitalized related to development of properties and land holdings	4,815	4,802	3,047
Redevelopment
Property, Plant and Equipment [Line Items]
Internal direct construction costs capitalized related to development of properties and land holdings	1,170	543	775
Tenant Improvements
Property, Plant and Equipment [Line Items]
Internal direct construction costs capitalized related to development of properties and land holdings	$ 1,917	$ 3,021	$ 3,609

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REAL ESTATE INVESTMENTS - Summary of Acquired Properties (Details) $ in Thousands				12 Months Ended
	Nov. 30, 2020 USD ($) ft²	Nov. 05, 2020 USD ($) ft²	Feb. 27, 2020 USD ($) a	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Business Acquisition [Line Items]
Purchase Price				$ 0	$ 41,950	$ 0
Land | 145 King of Prussia Road
Business Acquisition [Line Items]
Land area | a			7.75
Purchase Price			$ 11,250
Office | 1505-11 Race Street
Business Acquisition [Line Items]
Rentable Square Feet | ft²		119,763
Purchase Price		$ 9,700
Office | 250 King of Prussia Road
Business Acquisition [Line Items]
Rentable Square Feet | ft²	169,843
Purchase Price	$ 20,250

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REAL ESTATE INVESTMENTS - Asset Acquisition (Details) - 1505-11 Race Street $ in Thousands	Nov. 05, 2020 USD ($)
Schedule of Investments [Line Items]
Building, land and improvements	$ 9,723
Intangible assets acquired	2,422
Below market lease liabilities assumed	(2,193)
Total unencumbered acquisition value	$ 9,952
Below Market Lease
Schedule of Investments [Line Items]
Weighted average amortization period	1 year 6 months
Intangible Assets Acquired
Schedule of Investments [Line Items]
Weighted average amortization period	1 year 6 months

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REAL ESTATE INVESTMENTS - Summary of Office Properties Sold (Details) $ in Thousands									12 Months Ended
	Sep. 08, 2021 USD ($) ft²	Jul. 06, 2021 USD ($) ft²	Dec. 21, 2020 USD ($) ft² property	Jul. 21, 2020 USD ($) ft² property	Jun. 15, 2020 USD ($) a	Mar. 19, 2020 USD ($) ft²	Sep. 11, 2019 USD ($) ft²	Mar. 15, 2019 USD ($) a	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Sale									$ 142	$ 289,461	$ 356
Sale of ownership interest percentage			60.00%
Mid-Atlantic Office Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Variable consideration			$ 4,100
Mid-Atlantic Office Portfolio | Minimum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Variable consideration holdback term			6 months
Mid-Atlantic Office Portfolio | Maximum
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Variable consideration holdback term			9 months
Commerce Square
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sales Price				$ 115,000
Sale of ownership interest percentage				30.00%
Value of assets disposed of				$ 600,000
Deconsolidation gain				$ 271,900
Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain (Loss) on Sale											$ 1,000
Land | 1100 Lenox Drive
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Land area | ft²	5
Sales Price	$ 2,575
Gain (Loss) on Sale	$ 68
Land | 2100-2200 Lenox Drive
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Land area | ft²		35.2
Sales Price		$ 8,900
Gain (Loss) on Sale		$ 842
Land | Keith Valley
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Land area | a					14.0
Sales Price					$ 4,000
Gain (Loss) on Sale					$ 201
Land | 9 Presidential Boulevard
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Land area | a								2.7
Sales Price								$ 5,325
Gain (Loss) on Sale								$ 751
Office | Mid-Atlantic Office Portfolio
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rentable Square Feet | ft²			1,128,645
Sales Price			$ 192,943
Gain (Loss) on Sale			$ 15,164
Number of properties sold | property			12
Office | Mid-Atlantic Office Portfolio | Pennsylvania
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold | property			9
Office | Mid-Atlantic Office Portfolio | Maryland
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of properties sold | property			3
Office | Commerce Square
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rentable Square Feet | ft²			1,896,142	1,896,142
Sales Price				$ 115,000
Gain (Loss) on Sale				$ 271,905
Number of properties sold | property				2
Office | 52 East Swedesford Road
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rentable Square Feet | ft²						131,077
Sales Price						$ 18,000
Gain (Loss) on Sale						$ 2,336
Office | 1900 Gallows Rd
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Rentable Square Feet | ft²							210,632
Sales Price							$ 36,400
Gain (Loss) on Sale							$ (367)

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REAL ESTATE INVESTMENTS - Dispositions Narrative (Details) $ in Thousands		12 Months Ended
	Feb. 02, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jul. 23, 2021 USD ($)	Feb. 02, 2021 a	Feb. 02, 2021 ft²	Nov. 05, 2020 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on sale of undepreciated real estate		$ 2,903	$ 201	$ 2,020
Net gain on disposition of real estate		$ 142	$ 289,461	356
Prior Period Disposals
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on disposition of real estate				700
Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net gain on disposition of real estate				$ 1,000
3025 JFK Venture
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lease agreement term	99 years
Land area						1	1
Investment in real estate venture	$ 34,800				$ 34,800
Net gain on sale of undepreciated real estate	$ 2,000
1505-11 Race Street
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Transaction costs capitalized								$ 300

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REAL ESTATE INVESTMENTS - One Uptown Venture (Narrative) (Details) $ in Millions	Dec. 31, 2021 ft²	Dec. 01, 2021 USD ($) ft² property apartment
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of real estate property | ft²	13,678,136
One Uptown Venture
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Investment in real estate venture | $		$ 328.4
Number of apartment residences | apartment		341
Joint venture, funding committed by other party | $		$ 57.5
Construction loan, percent		65.00%
One Uptown Venture | Canyon Partners Real Estate
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of joint ventures | property		2
One Uptown Venture | Construction Loans
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Long-term debt, gross | $		$ 213.4
One Uptown Venture | Preferred Stock
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage		50.00%
One Uptown Venture | Common Stock
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership percentage		50.00%
One Uptown Venture | Class A Workspace
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of real estate property | ft²		348,000
One Uptown Venture | Street Level Retail
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of real estate property | ft²		15,000

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REAL ESTATE INVESTMENTS - Held for Use Impairment and Sale (Narrative) (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) a parcel	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Jan. 20, 2022 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Impairment of properties held for use	$ 0	$ 0	$ 0
Assets held for sale, net	562,000	$ 7,349,000
Held for Sale Properties Included in Continuing Operations | Other Land
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale, net	$ 600,000
Held for Sale Properties Included in Continuing Operations | Other Land | Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Aggregate sales price				$ 1,600,000
Held for Sale Properties Included in Continuing Operations | Other Land | Other
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of land parcels | parcel	2
Land area | a	10.0

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Narrative (Details) $ in Thousands, ft² in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) ft² a property apartment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of real estate properties	81
Investment balance | $	$ 411,110	$ 389,811
Accounts receivable | $	11,875	13,536
Real Estate Venture
Schedule of Equity Method Investments [Line Items]
Accounts receivable | $	2,500	1,200
Management Fees | Real Estate Venture
Schedule of Equity Method Investments [Line Items]
Service and other revenue | $	8,100	4,700	$ 4,300
Leasing Commission Income | Real Estate Venture
Schedule of Equity Method Investments [Line Items]
Service and other revenue | $	3,800	$ 1,100	$ 1,700
Unconsolidated Real Estate Ventures
Schedule of Equity Method Investments [Line Items]
Investment balance | $	$ 411,100
Unconsolidated Real Estate Ventures | Minimum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	15.00%
Unconsolidated Real Estate Ventures | Maximum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	70.00%
Unconsolidated Real Estate Ventures | Office Properties
Schedule of Equity Method Investments [Line Items]
Number of unconsolidated investments in Real Estate Ventures	4
Rentable square feet | ft²	8.2
Unconsolidated Real Estate Ventures | Other Liabilities
Schedule of Equity Method Investments [Line Items]
Investment balance | $	$ (24,400)
Unconsolidated Real Estate Ventures | Unconsolidated Properties
Schedule of Equity Method Investments [Line Items]
Number of real estate properties	9
Number of real estate properties with negative investment balances	1
Unconsolidated Real Estate Ventures | Land Held For Development
Schedule of Equity Method Investments [Line Items]
Number of unconsolidated investments in Real Estate Ventures	2
Land area | a	1.4
Unconsolidated Real Estate Ventures | Land Under Active Development
Schedule of Equity Method Investments [Line Items]
Number of unconsolidated investments in Real Estate Ventures	1
Land area | a	1.0
Unconsolidated Real Estate Ventures | Mixed Use Tower
Schedule of Equity Method Investments [Line Items]
Number of unconsolidated investments in Real Estate Ventures	1
Rentable square feet | ft²	0.2
Number of property units | apartment	250
Unconsolidated Real Estate Ventures | Residential Tower
Schedule of Equity Method Investments [Line Items]
Number of unconsolidated investments in Real Estate Ventures	1
Number of property units | apartment	321

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 21, 2020	Jul. 31, 2013
Schedule of Equity Method Investments [Line Items]
Carrying Amount	$ 411,110	$ 389,811
Company's Share of unconsolidated real estate venture Income (Loss)	(26,697)	(18,584)	$ (9,922)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 961,509	963,018
Commerce Square Venture
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	70.00%
Carrying Amount	$ 247,798	253,128
Company's Share of unconsolidated real estate venture Income (Loss)	(15,501)	(9,150)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 213,069	219,168
Mid-Atlantic Office Venture
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	40.00%			40.00%
Carrying Amount	$ 31,680	32,996
Company's Share of unconsolidated real estate venture Income (Loss)	932	96
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 123,015	120,831
Brandywine - AI Venture LLC
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50.00%
Carrying Amount	$ 0	10,302
Company's Share of unconsolidated real estate venture Income (Loss)	(721)	185	(2,800)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 0	0
Herndon Innovation Center Metro Portfolio Venture, LLC
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	15.00%
Carrying Amount	$ 15,844	16,019
Company's Share of unconsolidated real estate venture Income (Loss)	(174)	(358)	(498)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 207,302	207,302
MAP Venture
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50.00%
Carrying Amount	$ (24,396)	(11,516)
Company's Share of unconsolidated real estate venture Income (Loss)	(8,683)	(6,570)	(6,102)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 184,263	185,000
PJP VII
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	25.00%
Company's Share of unconsolidated real estate venture Income (Loss)			190
PJP II
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	30.00%
Company's Share of unconsolidated real estate venture Income (Loss)			81
PJP VI
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	25.00%
Company's Share of unconsolidated real estate venture Income (Loss)			(185)
4040 Wilson Venture
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50.00%				50.00%
Carrying Amount	$ 31,059	34,454
Company's Share of unconsolidated real estate venture Income (Loss)	(2,258)	(2,162)	(368)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 145,000	141,857
1919 Venture
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50.00%
Carrying Amount	$ 13,791	15,434
Company's Share of unconsolidated real estate venture Income (Loss)	427	59	328
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 88,860	88,860
3025 JFK Venture
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	55.00%
Carrying Amount	$ 56,370	0
Company's Share of unconsolidated real estate venture Income (Loss)	(118)	0	0
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 0	0
JBG 51 N Street
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	70.00%
Carrying Amount	$ 21,213	21,237
Company's Share of unconsolidated real estate venture Income (Loss)	(402)	(457)	(313)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 0	0
JBG 1250 First Street Office
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	70.00%
Carrying Amount	$ 17,751	17,757
Company's Share of unconsolidated real estate venture Income (Loss)	(199)	(227)	$ (255)
Unconsolidated Real Estate Venture Debt at 100%, gross	$ 0	$ 0

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Summary of Financial Position of Real Estate Ventures (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Net property	$ 2,955,068	$ 2,966,005
Other assets	133,094	176,747
Other liabilities	48,683	47,573
Equity	1,701,219	1,804,648	$ 1,688,303	$ 1,811,028
Investment In Nonconsolidated Real Estate
Schedule of Equity Method Investments [Line Items]
Net property	1,563,263	1,520,804
Other assets	434,687	488,805
Other liabilities	331,947	333,049
Debt, net	956,668	956,688
Equity	$ 709,335	$ 719,872

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Summary of Results of Operations of Real Estate Ventures with Interests (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]
Revenue	$ 486,819	$ 534,852	$ 580,417
Operating expenses	(396,569)	(424,027)	(468,007)
Interest expense, net	(62,617)	(73,911)	(81,512)
Depreciation and amortization	(178,105)	(188,283)	(210,005)
Net income	12,366	307,326	34,529
Equity in loss of unconsolidated real estate ventures	(26,697)	(18,584)	(9,922)
Investment In Nonconsolidated Real Estate
Schedule of Equity Method Investments [Line Items]
Revenue	214,792	150,276	132,358
Operating expenses	(117,273)	(85,812)	(71,784)
Interest expense, net	(30,569)	(22,661)	(21,908)
Depreciation and amortization	(97,147)	(70,805)	(53,331)
Provision for impairment	(1,393)	0	(5,664)
Loss on early extinguishment of debt	0	0	(1,231)
Net income	(31,590)	(29,002)	(21,560)
Company's share of net loss	(25,972)	(18,540)	(9,865)
Basis adjustments and other	(725)	(44)	(57)
Equity in loss of unconsolidated real estate ventures	$ (26,697)	$ (18,584)	$ (9,922)

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Aggregate Principal Payments of Recourse and Non-recourse Debt Payable to Third-parties (Details) - Unconsolidated Real Estate Ventures $ in Thousands	Dec. 31, 2021 USD ($)
Schedule of Equity Method Investments [Line Items]
2022	$ 8,543
2023	477,649
2024	330,317
2025	0
2026	145,000
Thereafter	0
Total principal payments	961,509
Net deferred financing costs	(5,923)
Net unamortized premiums/(discounts)	1,082
Outstanding indebtedness	$ 956,668

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 4040 Wilson Venture (Details) $ in Millions	3 Months Ended
	Dec. 31, 2021 USD ($) a ft² property	Jul. 31, 2013
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	81
Area of real estate property | ft²	13,678,136
4040 Wilson Venture
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	1
Area of real estate property | ft²	225,000
Land area | a	250
Ownership percentage	50.00%	50.00%
4040 Wilson Venture | Construction Loans
Schedule of Equity Method Investments [Line Items]
Long-term debt, gross | $	$ 150.0
4040 Wilson Venture | Secured Debt | Mortgage Loan Secured By Property
Schedule of Equity Method Investments [Line Items]
Long-term debt, gross | $	$ 155.0
4040 Wilson Venture | Secured Debt | Mortgage Loan Secured By Property | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Schedule of Equity Method Investments [Line Items]
Variable interest rate	1.80%

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Brandywine - AI Venture (Details)		12 Months Ended
	Nov. 09, 2021 USD ($) ft²	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) ft²
Schedule of Equity Method Investments [Line Items]
Net gain on real estate venture transactions		$ 2,973,000	$ 75,000	$ 11,639,000
Impairment of properties held for use		0	$ 0	0
Brandywine - AI Venture LLC | Fairview Properties
Schedule of Equity Method Investments [Line Items]
Provision for impairment on assets held for sale		1,400,000
Impairment of properties held for use				5,600,000
Brandywine - AI Venture LLC | Fairview Properties | Brandywine Realty Trust
Schedule of Equity Method Investments [Line Items]
Provision for impairment on assets held for sale		$ 700,000
Impairment of properties held for use				$ 2,800,000
Brandywine - AI Venture LLC | Falls Church, Virginia
Schedule of Equity Method Investments [Line Items]
Rentable square feet | ft²	183,618			180,659
Aggregate sales price	$ 27,600,000
Gross proceeds from sale	12,600,000
Net gain on real estate venture transactions	$ 3,000,000			$ 2,200,000
Debt, net				$ 26,000,000

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 3025 JFK Venture (Details) - 3025 JFK Venture $ in Millions	Feb. 02, 2021 a	Dec. 31, 2021 USD ($)	Jul. 23, 2021 USD ($)	Feb. 02, 2021 ft²	Feb. 02, 2021 USD ($)	Feb. 02, 2021
Schedule of Equity Method Investments [Line Items]
Lease agreement term	99 years
Land area	1			1
Investment in real estate venture			$ 34.8		$ 34.8
Area of building to be constructed | ft²				570,000
Estimated project cost					287.3
Joint venture, funding committed by other party					$ 45.2
Ownership interest held by partner						45.00%
Ownership percentage						55.00%
Construction loan amount		$ 186.7	$ 186.7
Joint venture, funding committed		$ 20.5
LIBOR
Schedule of Equity Method Investments [Line Items]
Debt instrument, interest rate, stated percentage			3.50%
Interest rate, floor			0.25%

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Mid-Atlantic Office JV (Details) $ in Millions		3 Months Ended
	Dec. 21, 2020 USD ($) ft² property	Dec. 31, 2021 USD ($) property
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property		81
Mid-Atlantic Office JV Loan
Schedule of Equity Method Investments [Line Items]
Proceeds from issuance of secured debt		$ 2.2
Secured construction loan with total borrowing capacity		$ 24.4
Mid-Atlantic Office Venture
Schedule of Equity Method Investments [Line Items]
Ownership percentage	40.00%	40.00%
Ownership percentage of total common equity	20.00%
Joint venture, funding from debt	$ 147.4
Proceeds from issuance of secured debt	$ 120.8
Mid-Atlantic Office Venture | Mid-Atlantic Office JV Loan | Maximum
Schedule of Equity Method Investments [Line Items]
Debt instrument, interest rate, stated percentage	5.60%
Mid-Atlantic Office Venture | LIBOR | Mid-Atlantic Office JV Loan
Schedule of Equity Method Investments [Line Items]
Variable interest rate	3.15%
Mid-Atlantic Office Venture | Preferred Equity Securities
Schedule of Equity Method Investments [Line Items]
Ownership percentage	25.00%
Investment in real estate venture	$ 20.0
Mid-Atlantic Office Venture | Common Equity Securities
Schedule of Equity Method Investments [Line Items]
Ownership percentage	15.00%
Mid-Atlantic Office Venture | Office Properties
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	12
Rentable square feet | ft²	1,128,645
Aggregate sales price	$ 192.9
Mid-Atlantic Office Venture | Office Properties | Philadelphia CBD
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	9
Mid-Atlantic Office Venture | Office Properties | Metropolitan Washington, D.C.
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	3

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Commerce Square Venture (Details)	Dec. 31, 2021 property	Jul. 21, 2021 property	Dec. 21, 2020 ft²	Jul. 21, 2020 ft²
Schedule of Equity Method Investments [Line Items]
Sale of ownership interest percentage			60.00%
Number of real estate properties	81
Commerce Square
Schedule of Equity Method Investments [Line Items]
Sale of ownership interest percentage				30.00%
Commerce Square | Office Properties
Schedule of Equity Method Investments [Line Items]
Rentable square feet | ft²			1,896,142	1,896,142
Number of real estate properties		2
Commerce Square
Schedule of Equity Method Investments [Line Items]
Ownership percentage	70.00%
Commerce Square | Preferred Equity Securities
Schedule of Equity Method Investments [Line Items]
Ownership percentage	32.00%
Commerce Square | Common Equity Securities
Schedule of Equity Method Investments [Line Items]
Ownership percentage	38.00%

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - PJP Ventures (Details) $ in Thousands		12 Months Ended
	Oct. 29, 2019 USD ($) ft² property	Dec. 31, 2021 USD ($) ft²	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Schedule of Equity Method Investments [Line Items]
Area of real estate property | ft²		13,678,136
Proceeds from the sale of properties		$ 10,303	$ 278,114	$ 41,795
Net gain on real estate venture transactions		$ 2,973	$ 75	$ 11,639
PJP II, PJP VII, And PJP VII | Charlottesville VA
Schedule of Equity Method Investments [Line Items]
Number of properties contributed to joint venture | property	3
Area of real estate property | ft²	204,347
Aggregate sales price	$ 51,000
Proceeds from the sale of properties	9,100
Net gain on real estate venture transactions	$ 8,000
PJP II, PJP VII, And PJP VII | Charlottesville VA | Minimum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	25.00%
PJP II, PJP VII, And PJP VII | Charlottesville VA | Maximum
Schedule of Equity Method Investments [Line Items]
Ownership percentage	30.00%

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Hernadon Innovation Center Metro Portfolio Venture, LLC (Details)	Apr. 12, 2019 USD ($)	Apr. 11, 2019 USD ($)	Mar. 29, 2019 USD ($) property	Dec. 31, 2021 ft² property
Schedule of Equity Method Investments [Line Items]
Area of real estate property | ft²				13,678,136
Herndon Innovation Center Metro Portfolio Venture, LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage				15.00%
Herndon Innovation Center Metro Portfolio Venture, LLC | Secured Debt
Schedule of Equity Method Investments [Line Items]
Debt instrument, face amount			$ 134,100,000
Number of properties used to secure debt | property			4
Proceeds from issuance of debt		$ 94,200,000	$ 113,100,000
Herndon Innovation Center Metro Portfolio Venture, LLC | Distributions From Loan One | Secured Debt
Schedule of Equity Method Investments [Line Items]
Proceeds from issuance of debt	$ 16,700,000
Variable interest rate			1.95%
Herndon Innovation Center Metro Portfolio Venture, LLC | Distributions From Loan One | Minimum | Secured Debt
Schedule of Equity Method Investments [Line Items]
Capped interest rate	5.45%
Herndon Innovation Center Metro Portfolio Venture, LLC | Distributions From Loan One | Maximum | Secured Debt
Schedule of Equity Method Investments [Line Items]
Capped interest rate	6.45%
Herndon Innovation Center Metro Portfolio Venture, LLC | Distributions From Loan Two | Secured Debt
Schedule of Equity Method Investments [Line Items]
Debt instrument, face amount		$ 115,300,000
Proceeds from issuance of debt	$ 13,800,000
Variable interest rate		1.80%
Herndon Innovation Center Metro Portfolio Venture, LLC | Distributions From Loan Two | Maximum | Secured Debt
Schedule of Equity Method Investments [Line Items]
Capped interest rate		6.30%
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office
Schedule of Equity Method Investments [Line Items]
Number of properties contributed to joint venture | property				8
Area of real estate property | ft²				1,293,197
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | Minimum
Schedule of Equity Method Investments [Line Items]
Ownership percentage				15.00%
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | Maximum
Schedule of Equity Method Investments [Line Items]
Ownership percentage				85.00%

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - MAP Venture (Details) - MAP Venture $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) ft² property
Schedule of Equity Method Investments [Line Items]
Ground lease annual payments | $	$ 11.9
Ground lease annual rent expense increase percentage through November 2025	2.50%
Ground lease annual rent expense increase after November 2025	2.50%
Variable Interest Entity, Not Primary Beneficiary
Schedule of Equity Method Investments [Line Items]
Number of office properties owned | property	58
Rentable square feet | ft²	3,924,783

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 1919 Ventures (Details) - 1919 Venture ft² in Thousands	12 Months Ended
	Dec. 31, 2021 ft² story apartment car
Schedule of Equity Method Investments [Line Items]
Number of floors of a building | story	29
Square foot of contemporary glass tower development	455
Number of luxury apartments | apartment	321
Square feet of commercial space	24
Number of car structured parking facility | car	215

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - JGB Ventures (Details)	Dec. 31, 2021 a property
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	81
JBG 51 N Street
Schedule of Equity Method Investments [Line Items]
Ownership percentage	70.00%
Area owned by real estate venture of undeveloped parcels of land | a	0.9
JBG 51 N Street | JBG Ventures
Schedule of Equity Method Investments [Line Items]
Ownership percentage	30.00%
JBG 1250 First Street Office
Schedule of Equity Method Investments [Line Items]
Ownership percentage	70.00%
Area owned by real estate venture of undeveloped parcels of land | a	0.5
JBG 1250 First Street Office | JBG Ventures
Schedule of Equity Method Investments [Line Items]
Ownership percentage	30.00%
JBG Ventures
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property	2

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DEBT AND PREFERRED EQUITY INVESTMENTS (Details)	3 Months Ended	12 Months Ended
	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($) property	Dec. 31, 2018 USD ($)	Dec. 31, 2021 property	Sep. 03, 2021 USD ($)
Summary of Investment Holdings [Line Items]
Number of real estate properties | property				81
Austin Preferred Equity Investment | Notes Receivable
Summary of Investment Holdings [Line Items]
Note receivable		$ 50,000,000
Number of real estate properties | property		2
Notes receivable, interest rate		9.00%
Extension option term		1 year
Note receivable repurchased amount					$ 50,000,000
Gain on financing receivable redemption	$ 2,800,000
1919 Venture
Summary of Investment Holdings [Line Items]
Note receivable			$ 44,400,000
Notes receivable, interest rate			4.00%
Debt, net			$ 44,400,000
Repayment of construction loan			$ 88,800,000

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LEASES - Lessor Accounting Maturities (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract]
2022	$ 328,553
2023	327,981
2024	304,240
2025	274,216
2026	249,045
Thereafter	$ 952,898

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LEASES - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 lease property
Lessee, Lease, Description [Line Items]
Number of ground leases considered operating lease | lease	6
Number of properties subject to ground leases | property	3
Minimum
Lessee, Lease, Description [Line Items]
Lease terms	8 years
Maximum
Lessee, Lease, Description [Line Items]
Lease terms	63 years

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LEASES - Lease Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Fixed lease cost	$ 2,100	$ 2,100
Variable lease cost	43	45
Total	$ 2,143	$ 2,145
Weighted-average remaining lease term (years)	55 years 2 months 12 days	55 years 10 months 24 days
Weighted-average discount rate	6.30%	6.30%

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LEASES - Lessee Accounting Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Minimum Rent
2022	$ 1,248
2023	1,263
2024	1,305
2025	1,321
2026	1,338
Thereafter	107,793
Total lease payments	114,268
Less: Imputed interest	91,306
Present value of operating lease liabilities	$ 22,962	$ 22,758

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DEFERRED COSTS - Deferred Costs (Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred Costs [Line Items]
Leasing costs, Total Cost	$ 143,895	$ 139,207
Total Cost	150,194	145,506
Leasing costs, Accumulated Amortization	(57,445)	(55,656)
Total, Accumulated Amortization	(63,332)	(60,650)
Leasing costs, Deferred Costs, net	86,450	83,551
Deferred Costs	86,862	84,856
Financing costs - Unsecured Credit Facility
Deferred Costs [Line Items]
Financing costs, Total Cost	6,299	6,299
Financing costs, Accumulated Amortization	(5,887)	(4,994)
Financing costs, Deferred Costs, net	$ 412	$ 1,305

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DEFERRED COSTS - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Costs (Textual) [Abstract]
Capitalized internal direct leasing costs	$ 2.1	$ 1.6	$ 1.7

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INTANGIBLE ASSETS AND LIABILITIES - Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Intangible assets, net:
Total Cost	$ 73,029	$ 94,173
Accumulated Amortization	(44,473)	(45,603)
Total	28,556	48,570
Intangible liabilities, net:
Total Cost	27,025	31,263
Accumulated Amortization	(14,044)	(12,815)
Total	12,981	18,448
In-place lease value
Intangible assets, net:
Total Cost	72,376	91,552
Accumulated Amortization	(44,066)	(43,400)
Total	28,310	48,152
Tenant relationship value
Intangible assets, net:
Total Cost	167	2,091
Accumulated Amortization	(97)	(1,938)
Total	70	153
Above market leases acquired
Intangible assets, net:
Total Cost	486	530
Accumulated Amortization	(310)	(265)
Total	$ 176	$ 265

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INTANGIBLE ASSETS AND LIABILITIES - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Tenant Move Outs Prior To End Of Lease Term
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off through accelerated amortization	$ 3.6	$ 0.3	$ 4.5
Tenant Move-Outs
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off through accelerated amortization	$ 0.6	$ 0.1	$ 2.2

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INTANGIBLE ASSETS AND LIABILITIES - Annual Amortization of Intangible Assets, Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets
2022	$ 9,642
2023	6,724
2024	4,433
2025	3,255
2026	1,195
Thereafter	3,307
Total	28,556	$ 48,570
Liabilities
2022	2,588
2023	1,540
2024	1,321
2025	1,044
2026	754
Thereafter	5,734
Total	$ 12,981	$ 18,448

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DEBT OBLIGATIONS - Consolidated Debt Obligations Outstanding (Details) - Unsecured Debt - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Consolidated debt obligations
Long-term debt, gross	$ 1,851,610,000	$ 1,828,610,000
Plus: premiums/(discounts), net	8,187,000	10,137,000
Net deferred financing costs	(6,211,000)	(8,152,000)
Total Debt Obligations	1,853,586,000	1,830,595,000
$600 million Unsecured Credit Facility
Consolidated debt obligations
Debt instrument, face amount	600,000,000
Long-term debt, gross	$ 23,000,000	0
Seven-Year Term Loan - Swapped to fixed
Consolidated debt obligations
Debt instrument, term	7 years
Long-term debt, gross	$ 250,000,000	250,000,000
Effective interest rate	2.87%
$350.0M 3.95% Guaranteed Notes due 2023
Consolidated debt obligations
Debt instrument, face amount	$ 350,000,000.0
Debt instrument, interest rate, stated percentage	3.95%
Long-term debt, gross	$ 350,000,000	350,000,000
Effective interest rate	3.87%
$350.0M 4.10% Guaranteed Notes due 2024
Consolidated debt obligations
Debt instrument, face amount	$ 350,000,000.0
Debt instrument, interest rate, stated percentage	4.10%
Long-term debt, gross	$ 350,000,000	350,000,000
Effective interest rate	3.78%
$450.0M 3.95% Guaranteed Notes due 2027
Consolidated debt obligations
Debt instrument, face amount	$ 450,000,000.0
Debt instrument, interest rate, stated percentage	3.95%
Long-term debt, gross	$ 450,000,000	450,000,000
Effective interest rate	4.03%
$350.0M 4.55% Guaranteed Notes due 2029
Consolidated debt obligations
Debt instrument, face amount	$ 350,000,000.0
Debt instrument, interest rate, stated percentage	4.55%
Long-term debt, gross	$ 350,000,000	350,000,000
Effective interest rate	4.30%
Indenture IA (Preferred Trust I)
Consolidated debt obligations
Long-term debt, gross	$ 27,062,000	27,062,000
Indenture IB (Preferred Trust I)
Consolidated debt obligations
Long-term debt, gross	25,774,000	25,774,000
Indenture II (Preferred Trust II)
Consolidated debt obligations
Long-term debt, gross	$ 25,774,000	$ 25,774,000
LIBOR | $600 million Unsecured Credit Facility
Consolidated debt obligations
Variable interest rate	1.10%
LIBOR | Indenture IA (Preferred Trust I)
Consolidated debt obligations
Variable interest rate	1.25%
LIBOR | Indenture IB (Preferred Trust I)
Consolidated debt obligations
Variable interest rate	1.25%
LIBOR | Indenture II (Preferred Trust II)
Consolidated debt obligations
Variable interest rate	1.25%

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DEBT OBLIGATIONS - Narrative (Details)		12 Months Ended
	Jul. 17, 2018 USD ($) extension	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Line of credit		$ 23,000,000	$ 0
Financing costs - Unsecured Credit Facility
Debt Instrument [Line Items]
Line of credit		$ 23,000,000
Long-term debt, weighted average interest rate		1.21%	1.48%
Interest expense borrowings		$ 400,000	$ 500,000
Financing costs - Unsecured Credit Facility | 2018 Credit Facility
Debt Instrument [Line Items]
Debt instrument, number of extensions | extension	2
Debt instrument, extension term duration	6 months
Debt financing costs	$ 2,700,000
Minimum credit Spread on a LIBOR rate loan		0.00%
Maximum credit spread on a LIBOR rate Loan		0.45%
Commitment fee percentage		0.25%
Minimum fixed charge coverage ratio		1.5
Maximum leverage ratio		0.60
Maximum unsecured indebtedness to unencumbered asset value ratio		0.60
Maximum secured indebtedness to total asset value ratio		0.40
Minimum unencumbered cash flow to interest expense on unsecured debt ratio		1.75
Maximum percent of payments of dividends and distributions		95.00%
Financing costs - Unsecured Credit Facility | 2018 Credit Facility | Minimum
Debt Instrument [Line Items]
Commitment fee percentage		0.125%
Financing costs - Unsecured Credit Facility | 2018 Credit Facility | Maximum
Debt Instrument [Line Items]
Commitment fee percentage		0.30%
Financing costs - Unsecured Credit Facility | 2018 Credit Facility | LIBOR
Debt Instrument [Line Items]
Variable interest rate		1.10%
Basis spread on variable rate		1.00%
Financing costs - Unsecured Credit Facility | 2018 Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Variable interest rate		0.775%
Financing costs - Unsecured Credit Facility | 2018 Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Variable interest rate		1.45%
Financing costs - Unsecured Credit Facility | 2018 Credit Facility | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Unsecured Debt | $600 million Unsecured Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount		$ 600,000,000
Maximum borrowing capacity	$ 600,000,000
Unsecured Debt | $600 million Unsecured Credit Facility | LIBOR
Debt Instrument [Line Items]
Variable interest rate		1.10%

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DEBT OBLIGATIONS - Aggregate Scheduled Principal Payments of Debt Obligation, Excluding Amortization of Discounts and Premiums (Details) - Unsecured Debt - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
2022	$ 273,000
2023	350,000
2024	350,000
2025	0
2026	0
Thereafter	878,610
Total principal payments	1,851,610	$ 1,828,610
Net unamortized premiums/(discounts)	8,187	10,137
Net deferred financing costs	(6,211)	(8,152)
Debt, net	$ 1,853,586	$ 1,830,595

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Instruments for which Estimates of Fair Value Differ from Carrying Amounts (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Note receivable	$ 44,430	$ 94,430
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Note receivable, fair value	45,230	97,372
Unsecured notes payable
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Deferred financing costs, net	6,211	8,152
Unsecured notes payable | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Unsecured notes payable	1,502,368	1,502,901
Deferred financing costs, net	5,800	7,200
Unsecured notes payable | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	1,588,780	1,607,310
Variable rate debt | Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Variable rate debt	351,218	327,694
Deferred financing costs, net	400	900
Variable rate debt | Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value	$ 344,754	$ 308,838

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DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative, notional amount	$ 250,000	$ 275,774
2.868% Interest Rate Swap Maturing October 8, 2022 | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Derivative liability, notional amount	$ 250,000	250,000
Strike	2.868%
Derivative liability, fair value, gross liability	$ (2,461)	(6,627)
3.300% Interest Rate Swap Maturing January 30, 2021 | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Derivative liability, notional amount	$ 0	25,774
Strike	3.30%
Derivative liability, fair value, gross liability	$ 0	$ (120)

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LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Noncontrolling Interest [Abstract]
Aggregate amount related to non-controlling interests classified within equity	$ 8.2	$ 10.5
Settlement value of non controlling interest in operating partnership	$ 11.1	$ 11.7

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BENEFICIARIES' EQUITY OF THE PARENT COMPANY - Number of Shares and Net Income Used to Calculate Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator
Net income	$ 12,366	$ 307,326	$ 34,529
Net income attributable to noncontrolling interests, Basic	(77)	(1,799)	(262)
Net income attributable to noncontrolling interests, Diluted	(77)	(1,799)	(262)
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic	(421)	(410)	(396)
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted	(421)	(410)	(396)
Net income attributable to Common Shareholders/ Unitholders of Brandywine Realty Trust	11,868	305,117	33,871
Net income attributable to common shareholders, Diluted	$ 11,868	$ 305,117	$ 33,871
Denominator
Basic weighted average shares outstanding (in shares)	170,878,185	171,926,079	176,132,941
Contingent securities/Share based compensation (in shares)	1,395,055	390,997	553,872
Diluted weighted average shares outstanding (in shares)	172,273,240	172,317,076	176,686,813
Earnings per Common Share:
Net income attributable to common shareholders, Basic (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Net income attributable to common shareholders, Diluted (in dollars per share)	$ 0.07	$ 1.77	$ 0.19

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BENEFICIARIES' EQUITY OF THE PARENT COMPANY - Narrative (Details) - USD ($)		12 Months Ended
	Dec. 07, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 03, 2019	Jan. 10, 2017
Class of Stock [Line Items]
Dividends, common stock	$ 32,800,000
Preferred shares authorized (in shares)		20,000,000	20,000,000
Preferred shares outstanding (in shares)		0	0
shares repurchased and retired (in units)		$ 0			$ 150,000,000
Repurchased and retired (in shares)			6,248,483	1,337,169
Share price (in usd per share)			$ 9.60	$ 12.92
Repurchased and retired, value			$ 59,999,000	$ 17,281,000
Common stock, shares authorized (in shares)		400,000,000	400,000,000
Common shares remain available for issuance (in shares)		0
Offering Program
Class of Stock [Line Items]
Common stock, shares authorized (in shares)						16,000,000
Common shares issued under offering program (in shares)			0	0
Commerce Square
Class of Stock [Line Items]
Units issued to acquire noncontrolling interest (in units)		226,695
Percent of noncontrolling interest acquired		1.00%
Dividend Declared
Class of Stock [Line Items]
Dividends payable, amount per share (in usd per share)	$ 0.19
Redeemable Common Limited Partnership Units
Class of Stock [Line Items]
Redeemable common limited partnership units (in shares)		823,983	981,634	981,634

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PARTNERS' EQUITY OF THE PARENT COMPANY - Number of Units and Net Income Used to Calculate Basic and Diluted Earnings Per Common Partnership Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator
Net income	$ 12,366	$ 307,326	$ 34,529
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic	(421)	(410)	(396)
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted	$ (421)	$ (410)	$ (396)
Denominator
Basic weighted average shares outstanding (in shares)	170,878,185	171,926,079	176,132,941
Contingent securities/Share based compensation (in shares)	1,395,055	390,997	553,872
Diluted weighted average shares outstanding (in shares)	172,273,240	172,317,076	176,686,813
Earnings per Common Partnership Unit:
Net income attributable to common shareholders, Basic (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Net income attributable to common shareholders, Diluted (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Numerator
Net income	$ 12,366	$ 307,326	$ 34,529
Net income attributable to noncontrolling interests	3	(20)	(69)
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic	(421)	(410)	(396)
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted	(421)	(410)	(396)
Net income attributable to common unitholders, Basic	11,948	306,896	34,064
Net income attributable to common unitholders, Diluted	$ 11,948	$ 306,896	$ 34,064
Denominator
Basic weighted average shares outstanding (in shares)	171,770,843	172,907,713	177,114,932
Contingent securities/Share based compensation (in shares)	1,395,055	390,997	553,872
Diluted weighted average shares outstanding (in shares)	173,165,898	173,298,710	177,668,804
Earnings per Common Partnership Unit:
Net income attributable to common shareholders, Basic (in dollars per share)	$ 0.07	$ 1.77	$ 0.19
Net income attributable to common shareholders, Diluted (in dollars per share)	$ 0.07	$ 1.77	$ 0.19

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PARTNERS' EQUITY OF THE PARENT COMPANY - Narrative (Details) - USD ($)			12 Months Ended
	Dec. 07, 2021	Jan. 10, 2017	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 03, 2019
Earnings Per Common Partnership Unit [Line Items]
Dividends, common stock	$ 32,800,000
shares repurchased and retired (in units)			$ 0			$ 150,000,000
Repurchased and retired (in shares)				6,248,483	1,337,169
Share price (in usd per share)				$ 9.60	$ 12.92
Repurchased and retired, value				$ 59,999,000	$ 17,281,000
Common stock, par or stated value per share (in usd per share)			$ 0.01	$ 0.01
Common stock, shares authorized (in shares)			400,000,000	400,000,000
Common shares remain available for issuance (in shares)			0
Commerce Square
Earnings Per Common Partnership Unit [Line Items]
Percent of noncontrolling interest acquired			1.00%
Shelf Registration
Earnings Per Common Partnership Unit [Line Items]
Sale of Stock, Number of Shares Issued in Transaction			226,695
Offering Program
Earnings Per Common Partnership Unit [Line Items]
Common stock, shares authorized (in shares)		16,000,000
Upfront costs		$ 200,000
Dividend Declared
Earnings Per Common Partnership Unit [Line Items]
Dividends payable (in dollars per share)	$ 0.19
Class A Units
Earnings Per Common Partnership Unit [Line Items]
Redeemable limited partnership unit price (in dollars per share)			$ 13.42	$ 11.91	$ 15.75
Limited partners' capital account, units outstanding (in units)			823,983		981,634
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Earnings Per Common Partnership Unit [Line Items]
Preferred units, outstanding (in units)			0	0
Repurchase program, number of mirror unit of operating partnership retired for each common share repurchased			1
Redeemable limited partnership units issued (in units)			823,983	981,634
Redeemable limited partnership units outstanding (in units)			823,983	981,634

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SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION - Narrative (Details)			12 Months Ended
	Mar. 04, 2021 shares	Feb. 01, 2021 shares	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2019 USD ($) shares	May 18, 2021 shares	Feb. 23, 2021 installment shares	Jan. 20, 2021 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Defined contribution plan, maximum annual contribution per employee, percent			100.00%
Defined contribution plan, employer discretionary contribution amount | $			$ 400,000	$ 500,000	$ 400,000
Number of vesting installments | installment							3
Number of shares to be issued under deferred compensation plan included in total shares outstanding			1,200,000
Restricted Share Rights Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share rights outstanding (in shares)			474,978	488,735
Unrecognized compensation expenses | $			$ 1,800,000
Weighted average period over which options will be recognized			1 year 10 months 24 days
Share-based compensation expense | $			$ 4,100,000	$ 4,300,000	3,900,000
Share-based compensation expense, capitalized | $			$ 500,000	400,000	300,000
Granted (in shares)	252,278		343,179
Number of restricted share right will get settled for common share	1
Accumulated service period for voluntary termination	15 years
Restricted Share Rights Awards | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
Restricted Share Rights Awards | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years		3 years
Restricted Performance Share Units Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Unrecognized compensation expenses | $			$ 6,300,000
Weighted average period over which options will be recognized			1 year 6 months
Share-based compensation expense | $			$ 4,300,000	3,000,000	4,200,000
Share-based compensation expense, capitalized | $			$ 500,000	$ 400,000	$ 600,000
Common shares issued for share based compensation		82,513
Dividends payable (in dollars per share) | $ / shares								$ 0.19
Restricted Performance Share Units Plan | Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share rights outstanding (in shares)			890,448	525,669
Granted (in shares)			380,957
Performance earning potential			200.00%
Outperformance feature measurement term			3 years
Additional vesting period			2 years
Restricted Performance Share Units Plan | Executive Officers | 2020 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issuable under outperformance feature (in shares)			388,840	316,236
Restricted Performance Share Units Plan | Executive Officers | 2019 Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards issuable under outperformance feature (in shares)					228,858
Restricted Performance Share Units Plan | Non-Officer Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share rights outstanding (in shares)						41,634	49,267
Employee Share Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense | $			$ 100,000	$ 100,000	$ 100,000
Share-based compensation, percentage of closing price			85.00%
Maximum participant contribution, percentage of compensation			20.00%
Maximum participant contribution, dollar amount | $			$ 50,000
Aggregate share-based awards awarded to executives			1,250,000
Stock issued during period, value, employee stock purchase plan | $			$ 600,000	$ 400,000	$ 500,000
Share-based compensation arrangement by share-based payment award, discount from market price, purchase			15.00%

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SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION - Restricted Share Activity (Details) - Restricted Share Rights Awards - $ / shares		12 Months Ended
	Mar. 04, 2021	Dec. 31, 2021
Shares
Beginning balance (in shares)		488,735
Granted (in shares)	252,278	343,179
Vested (in shares)		(339,579)
Forfeited (in shares)		(17,357)
Ending balance (in shares)		474,978
Weighted Average Grant Date Fair Value
Non-vested at beginning of year, Weighted Average Grant Date Fair Value (in dollars per shares)		$ 15.19
Granted, Weighted Average Grant Date Fair Value (in dollars per shares)		12.72
Vested, Weighted Average Grant Date Fair Value (in dollars per shares)		15.12
Forfeited, Weighted Average Grant Date Fair Value (in dollars per shares)		13.55
Non-vested at end of year, Weighted Average Grant Date Fair Value (in dollars per shares)		$ 13.51

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SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION - Restricted Performance Share Units (Details) - Restricted Performance Share Units Plan - Executive Officers - USD ($) $ in Thousands				12 Months Ended
	Mar. 05, 2021	Mar. 05, 2020	Feb. 21, 2019	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance (in shares)				525,669
Granted (in shares)				380,957
Units Cancelled (in shares)				(16,178)
Ending balance (in shares)				890,448
February 21, 2019 RSPU Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance (in shares)				206,069
Granted (in shares)				0
Units Cancelled (in shares)				(3,837)
Ending balance (in shares)				202,232
Total number of shares authorized for issuance (in shares)			213,728
Fair Value of Units on Grant Date			$ 4,627
March 5, 2020 RSPU Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance (in shares)				319,600
Granted (in shares)				0
Units Cancelled (in shares)				(5,545)
Ending balance (in shares)				314,055
Total number of shares authorized for issuance (in shares)		319,600
Fair Value of Units on Grant Date		$ 5,389
March 5, 2021 RSPU Grant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beginning balance (in shares)				0
Granted (in shares)				380,957
Units Cancelled (in shares)				(6,796)
Ending balance (in shares)				374,161
Total number of shares authorized for issuance (in shares)	380,957
Fair Value of Units on Grant Date	$ 6,389

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DISTRIBUTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Distributions [Abstract]
Common share distributions payments of ordinary dividends (in usd per share)	$ 0.64	$ 0.41	$ 0.62
Common share distributions capital gain (in usd per share)	0.01	0.35	0
Common share distributions non-taxable distributions (in usd per share)	0.11	0	0.14
Common stock dividends per share paid (in usd per share)	$ 0.76	$ 0.76	$ 0.76
Percentage classified as ordinary income	83.90%	53.90%	81.00%
Percentage classified as capital gain	1.20%	46.10%	0.00%
Percentage classified as non-taxable distribution	14.90%	0.00%	19.00%

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INCOME TAXES AND TAX CREDIT TRANSACTIONS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Examination [Line Items]
Accruals for tax uncertainties	$ 0	$ 0
Deferred income tax expense (benefit)	0	0	$ 100,000
Current income tax expense (benefit)	0	(200,000)	$ (100,000)
Other Assets
Income Tax Examination [Line Items]
Deferred tax assets	$ 0	$ 0

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Parent Company
Beneficiaries' Equity, beginning balance		$ 1,804,648	$ 1,688,303	$ 1,811,028
Change in fair market value during year		4,817	(5,972)	(8,210)
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests		(28)	29	41
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	[1]	752	752	770
Beneficiaries' Equity, ending balance		1,701,219	1,804,648	1,688,303
Operating Partnership
Change in fair market value during year		4,817	(5,972)	(8,210)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	[1]	752	752	770
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Parent Company
Change in fair market value during year		4,817	(5,972)	(8,210)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	[1]	752	752	770
Operating Partnership
Partners' Equity, beginning balance		1,793,082	1,672,915	1,798,508
Change in fair market value during year		4,817	(5,972)	(8,210)
Amortization of interest rate contracts reclassified from comprehensive income to interest expense	[1]	752	752	770
Partners' Equity, ending balance		1,690,079	1,793,082	1,672,915
Accumulated Other Comprehensive Income (Loss)
Parent Company
Beneficiaries' Equity, beginning balance		(7,561)	(2,370)	5,029
Beneficiaries' Equity, ending balance		(2,020)	(7,561)	(2,370)
Accumulated Other Comprehensive Income (Loss) | BRANDYWINE OPERATING PARTNERSHIP, L.P.
Operating Partnership
Partners' Equity, beginning balance		(7,935)	(2,715)	4,725
Partners' Equity, ending balance		$ (2,366)	$ (7,935)	$ (2,715)

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

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Narrative (Details) $ in Millions	Dec. 31, 2021 USD ($)
Stockholders' Equity Note [Abstract]
Losses expected to be reclassified from AOCI into interest expense within the next twelve months	$ 0.6

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SEGMENT INFORMATION - Narrative (Details)	12 Months Ended
	Dec. 31, 2021 segment
Segment Reporting [Abstract]
Number of reportable segments	5

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SEGMENT INFORMATION - Real Estate Investments, at Cost of Company's Reportable Segments (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Operating properties	$ 3,472,602	$ 3,474,109	$ 4,006,459
Right of use asset - operating leases, net	20,313	20,977
Construction-in-progress	277,237	210,311
Land held for development	114,604	117,984
Prepaid leasehold interests in land held for development, net	27,762	39,185
Philadelphia CBD
Segment Reporting Information [Line Items]
Operating properties	1,460,510	1,433,927
Pennsylvania Suburbs
Segment Reporting Information [Line Items]
Operating properties	866,223	871,530
Austin, Texas
Segment Reporting Information [Line Items]
Operating properties	778,145	728,741
Metropolitan Washington, D.C.
Segment Reporting Information [Line Items]
Operating properties	280,921	352,794
Other
Segment Reporting Information [Line Items]
Operating properties	$ 86,803	$ 87,117

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SEGMENT INFORMATION - Net Operating Income of Company's Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total revenue	$ 486,819	$ 534,852	$ 580,417
Operating expenses	(188,311)	(205,456)	(225,846)
Net operating income (loss)	298,508	329,396	354,571
Philadelphia CBD
Segment Reporting Information [Line Items]
Total revenue	207,858	232,028	263,769
Pennsylvania Suburbs
Segment Reporting Information [Line Items]
Total revenue	124,566	141,613	141,084
Austin, Texas
Segment Reporting Information [Line Items]
Total revenue	101,680	102,982	104,157
Metropolitan Washington, D.C.
Segment Reporting Information [Line Items]
Total revenue	19,865	40,223	51,498
Operating Segments | Philadelphia CBD
Segment Reporting Information [Line Items]
Total revenue	207,858	232,028	263,769
Operating expenses	(73,695)	(82,505)	(100,219)
Net operating income (loss)	134,163	149,523	163,550
Operating Segments | Pennsylvania Suburbs
Segment Reporting Information [Line Items]
Total revenue	124,566	141,613	141,084
Operating expenses	(40,011)	(46,281)	(47,418)
Net operating income (loss)	84,555	95,332	93,666
Operating Segments | Austin, Texas
Segment Reporting Information [Line Items]
Total revenue	101,680	102,982	104,157
Operating expenses	(39,374)	(39,759)	(38,285)
Net operating income (loss)	62,306	63,223	65,872
Operating Segments | Metropolitan Washington, D.C.
Segment Reporting Information [Line Items]
Total revenue	19,865	40,223	51,498
Operating expenses	(15,386)	(20,791)	(23,455)
Net operating income (loss)	4,479	19,432	28,043
Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	14,015	13,469	14,558
Operating expenses	(9,840)	(9,815)	(9,328)
Net operating income (loss)	4,175	3,654	5,230
Corporate
Segment Reporting Information [Line Items]
Total revenue	18,835	4,537	5,351
Operating expenses	(10,005)	(6,305)	(7,141)
Net operating income (loss)	$ 8,830	$ (1,768)	$ (1,790)

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SEGMENT INFORMATION - Unconsolidated Real Estate Ventures of Company's Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Investment in unconsolidated real estate ventures	$ 411,110	$ 389,811
Equity in income (loss) of real estate venture	(26,697)	(18,584)	$ (9,922)
Philadelphia CBD
Segment Reporting Information [Line Items]
Investment in unconsolidated real estate ventures	317,959	268,562
Equity in income (loss) of real estate venture	(15,191)	(9,090)	328
Metropolitan Washington, D.C.
Segment Reporting Information [Line Items]
Investment in unconsolidated real estate ventures	85,867	99,769
Equity in income (loss) of real estate venture	(3,755)	(3,019)	(4,234)
Mid-Atlantic Office Venture
Segment Reporting Information [Line Items]
Investment in unconsolidated real estate ventures	31,680	32,996
Equity in income (loss) of real estate venture	932	96	0
MAP Venture
Segment Reporting Information [Line Items]
Investment in unconsolidated real estate ventures	(24,396)	(11,516)
Equity in income (loss) of real estate venture	(8,683)	(6,571)	(6,102)
Other
Segment Reporting Information [Line Items]
Investment in unconsolidated real estate ventures	0	0
Equity in income (loss) of real estate venture	$ 0	$ 0	$ 86

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SEGMENT INFORMATION - Reconciliation of Consolidated Net Income (Loss) to Consolidated NOI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting [Abstract]
Net income	$ 12,366	$ 307,326	$ 34,529
Plus:
Interest expense	62,617	73,911	81,512
Interest expense - amortization of deferred financing costs	2,836	2,904	2,768
Depreciation and amortization	178,105	188,283	210,005
General and administrative expenses	30,153	30,288	32,156
Equity in loss of unconsolidated real estate ventures	26,697	18,584	9,922
Less:
Interest and investment income	8,295	1,939	2,318
Income tax (provision) benefit	(47)	224	(12)
Net gain on disposition of real estate	142	289,461	356
Net gain on sale of undepreciated real estate	2,903	201	2,020
Net gain on real estate venture transactions	2,973	75	11,639
Consolidated net operating income	$ 298,508	$ 329,396	$ 354,571

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COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands			1 Months Ended	12 Months Ended
	Oct. 21, 2020 USD ($)	Apr. 02, 2015 USD ($)	Feb. 28, 2021 property	Dec. 31, 2021 USD ($)	Jul. 23, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2004 ft²
Property Subject to or Available for Operating Lease [Line Items]
Real estate ventures aggregate indebtedness				$ 961,509		$ 963,018
Limited payment guarantee, percent of principle balance (up to)					25.00%
Commerce Square | Preferred Equity Investment Obligation
Property Subject to or Available for Operating Lease [Line Items]
Other commitments				20,000
Amount committed to date				2,100
3025 JFK Venture
Property Subject to or Available for Operating Lease [Line Items]
Construction loan amount				186,700	$ 186,700
Natural Disasters and Other Casualty Events
Property Subject to or Available for Operating Lease [Line Items]
Number of properties damaged | property			1
Write-off of fixed assets				1,200
Restoration liability				7,200
Business interruption costs				3,900
Insurance proceeds				15,300
Natural Disasters and Other Casualty Events | Other Income
Property Subject to or Available for Operating Lease [Line Items]
Insurance proceeds				3,000
Natural Disasters and Other Casualty Events | Accounts Payable and Accrued Liabilities
Property Subject to or Available for Operating Lease [Line Items]
Restoration liability				1,900
Unconsolidated Real Estate Ventures
Property Subject to or Available for Operating Lease [Line Items]
Real estate ventures aggregate indebtedness				961,500
Two Logan Square
Property Subject to or Available for Operating Lease [Line Items]
Rentable square feet | ft²							708,844
Settlement liabilities				600
Two Logan Square | Secured Debt
Property Subject to or Available for Operating Lease [Line Items]
Repayments of long-term debt	$ 79,800
618 Market Street
Property Subject to or Available for Operating Lease [Line Items]
Contingent consideration, liability		$ 2,000
Fair value of contingent consideration		1,600
Interest expense		$ 2,000
Schuylkill Yards Project
Property Subject to or Available for Operating Lease [Line Items]
Other commitments				7,000
Estimated potential additional contribution obligation				$ 2,400

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Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 5,086	$ 7,975	$ 12,919
Additions	0	0	0
Deductions	953	2,889	4,944
Balance at End of Year	$ 4,133	$ 5,086	$ 7,975

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Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Initial Cost
Land	$ 365,011
Buildings and Improvements	2,472,362
Net Improvements (Retirements) Since Acquisition	635,229
Gross Amount Which Carried
Land	410,144
Buildings and Improvements	3,062,458
Total	3,472,602	$ 3,474,109	$ 4,006,459	$ 3,951,719
Accumulated Depreciation at December 31, 2021	957,450	896,561	$ 973,318	$ 885,407
Pennsylvania Suburbs | Six Tower Bridge (181 Washington Street)
Initial Cost
Land		6,927
Buildings and Improvements		14,722
Net Improvements (Retirements) Since Acquisition		1,747
Gross Amount Which Carried
Land		6,237
Buildings and Improvements		17,159
Total		23,396
Accumulated Depreciation at December 31, 2021		4,436
Pennsylvania Suburbs | 426 West Lancaster Avenue
Initial Cost
Land		1,689
Buildings and Improvements		6,756
Net Improvements (Retirements) Since Acquisition		9,400
Gross Amount Which Carried
Land		1,686
Buildings and Improvements		16,159
Total		17,845
Accumulated Depreciation at December 31, 2021		1,614
Pennsylvania Suburbs | 640 Freedom Business Center
Initial Cost
Land		1,015
Buildings and Improvements		20,098
Net Improvements (Retirements) Since Acquisition		4,252
Gross Amount Which Carried
Land		360
Buildings and Improvements		25,005
Total		25,365
Accumulated Depreciation at December 31, 2021		15,445
Pennsylvania Suburbs | 620 Freedom Business Center
Initial Cost
Land		666
Buildings and Improvements		13,118
Net Improvements (Retirements) Since Acquisition		1,498
Gross Amount Which Carried
Land		234
Buildings and Improvements		15,048
Total		15,282
Accumulated Depreciation at December 31, 2021		9,596
Pennsylvania Suburbs | 1000 First Avenue
Initial Cost
Land		0
Buildings and Improvements		13,708
Net Improvements (Retirements) Since Acquisition		2,806
Gross Amount Which Carried
Land		0
Buildings and Improvements		16,514
Total		16,514
Accumulated Depreciation at December 31, 2021		11,778
Pennsylvania Suburbs | 1060 First Avenue
Initial Cost
Land		0
Buildings and Improvements		13,665
Net Improvements (Retirements) Since Acquisition		4,014
Gross Amount Which Carried
Land		0
Buildings and Improvements		17,679
Total		17,679
Accumulated Depreciation at December 31, 2021		12,249
Pennsylvania Suburbs | 630 Freedom Business Center Drive
Initial Cost
Land		666
Buildings and Improvements		13,251
Net Improvements (Retirements) Since Acquisition		2,937
Gross Amount Which Carried
Land		237
Buildings and Improvements		16,617
Total		16,854
Accumulated Depreciation at December 31, 2021		10,322
Pennsylvania Suburbs | 1020 First Avenue
Initial Cost
Land		0
Buildings and Improvements		10,744
Net Improvements (Retirements) Since Acquisition		4,306
Gross Amount Which Carried
Land		0
Buildings and Improvements		15,050
Total		15,050
Accumulated Depreciation at December 31, 2021		10,380
Pennsylvania Suburbs | 1040 First Avenue
Initial Cost
Land		0
Buildings and Improvements		14,142
Net Improvements (Retirements) Since Acquisition		4,915
Gross Amount Which Carried
Land		0
Buildings and Improvements		19,057
Total		19,057
Accumulated Depreciation at December 31, 2021		13,367
Pennsylvania Suburbs | 610 Freedom Business Center Drive
Initial Cost
Land		485
Buildings and Improvements		9,602
Net Improvements (Retirements) Since Acquisition		2,415
Gross Amount Which Carried
Land		172
Buildings and Improvements		12,330
Total		12,502
Accumulated Depreciation at December 31, 2021		8,007
Pennsylvania Suburbs | 650 Park Avenue
Initial Cost
Land		1,916
Buildings and Improvements		4,378
Net Improvements (Retirements) Since Acquisition		(4,378)
Gross Amount Which Carried
Land		1,916
Buildings and Improvements		0
Total		1,916
Accumulated Depreciation at December 31, 2021		0
Pennsylvania Suburbs | 600 Park Avenue
Initial Cost
Land		1,012
Buildings and Improvements		4,048
Net Improvements (Retirements) Since Acquisition		385
Gross Amount Which Carried
Land		1,012
Buildings and Improvements		4,433
Total		5,445
Accumulated Depreciation at December 31, 2021		2,888
Pennsylvania Suburbs | 933 First Avenue
Initial Cost
Land		3,127
Buildings and Improvements		20,794
Net Improvements (Retirements) Since Acquisition		(1,125)
Gross Amount Which Carried
Land		3,127
Buildings and Improvements		19,669
Total		22,796
Accumulated Depreciation at December 31, 2021		3,954
Pennsylvania Suburbs | 500 North Gulph Road
Initial Cost
Land		1,303
Buildings and Improvements		5,201
Net Improvements (Retirements) Since Acquisition		21,471
Gross Amount Which Carried
Land		1,303
Buildings and Improvements		26,672
Total		27,975
Accumulated Depreciation at December 31, 2021		3,526
Pennsylvania Suburbs | 401 Plymouth Road
Initial Cost
Land		6,199
Buildings and Improvements		16,131
Net Improvements (Retirements) Since Acquisition		15,622
Gross Amount Which Carried
Land		6,199
Buildings and Improvements		31,753
Total		37,952
Accumulated Depreciation at December 31, 2021		16,559
Pennsylvania Suburbs | Metroplex (4000 Chemical Road)
Initial Cost
Land		4,373
Buildings and Improvements		24,546
Net Improvements (Retirements) Since Acquisition		5,498
Gross Amount Which Carried
Land		4,373
Buildings and Improvements		30,044
Total		34,417
Accumulated Depreciation at December 31, 2021		8,667
Pennsylvania Suburbs | 610 West Germantown Pike
Initial Cost
Land		3,651
Buildings and Improvements		14,514
Net Improvements (Retirements) Since Acquisition		4,493
Gross Amount Which Carried
Land		3,651
Buildings and Improvements		19,007
Total		22,658
Accumulated Depreciation at December 31, 2021		9,635
Pennsylvania Suburbs | 600 West Germantown Pike
Initial Cost
Land		3,652
Buildings and Improvements		15,288
Net Improvements (Retirements) Since Acquisition		2,692
Gross Amount Which Carried
Land		3,652
Buildings and Improvements		17,980
Total		21,632
Accumulated Depreciation at December 31, 2021		8,989
Pennsylvania Suburbs | 630 West Germantown Pike
Initial Cost
Land		3,558
Buildings and Improvements		14,743
Net Improvements (Retirements) Since Acquisition		2,221
Gross Amount Which Carried
Land		3,558
Buildings and Improvements		16,964
Total		20,522
Accumulated Depreciation at December 31, 2021		8,623
Pennsylvania Suburbs | 620 West Germantown Pike
Initial Cost
Land		3,572
Buildings and Improvements		14,435
Net Improvements (Retirements) Since Acquisition		2,541
Gross Amount Which Carried
Land		3,572
Buildings and Improvements		16,976
Total		20,548
Accumulated Depreciation at December 31, 2021		7,992
Pennsylvania Suburbs | 660 West Germantown Pike
Initial Cost
Land		3,694
Buildings and Improvements		5,487
Net Improvements (Retirements) Since Acquisition		19,473
Gross Amount Which Carried
Land		5,405
Buildings and Improvements		23,249
Total		28,654
Accumulated Depreciation at December 31, 2021		7,549
Pennsylvania Suburbs | 351 Plymouth Road
Initial Cost
Land		1,043
Buildings and Improvements		555
Net Improvements (Retirements) Since Acquisition		0
Gross Amount Which Carried
Land		1,043
Buildings and Improvements		555
Total		1,598
Accumulated Depreciation at December 31, 2021		232
Pennsylvania Suburbs | 150 Radnor Chester Road
Initial Cost
Land		11,925
Buildings and Improvements		36,986
Net Improvements (Retirements) Since Acquisition		21,940
Gross Amount Which Carried
Land		11,897
Buildings and Improvements		58,954
Total		70,851
Accumulated Depreciation at December 31, 2021		23,715
Pennsylvania Suburbs | One Radnor Corporate Center
Initial Cost
Land		7,323
Buildings and Improvements		28,613
Net Improvements (Retirements) Since Acquisition		18,811
Gross Amount Which Carried
Land		7,323
Buildings and Improvements		47,424
Total		54,747
Accumulated Depreciation at December 31, 2021		33,343
Pennsylvania Suburbs | 201 King of Prussia Road
Initial Cost
Land		8,956
Buildings and Improvements		29,811
Net Improvements (Retirements) Since Acquisition		4,816
Gross Amount Which Carried
Land		8,949
Buildings and Improvements		34,634
Total		43,583
Accumulated Depreciation at December 31, 2021		22,224
Pennsylvania Suburbs | 555 Lancaster Avenue
Initial Cost
Land		8,014
Buildings and Improvements		16,508
Net Improvements (Retirements) Since Acquisition		10,137
Gross Amount Which Carried
Land		8,609
Buildings and Improvements		26,050
Total		34,659
Accumulated Depreciation at December 31, 2021		11,546
Pennsylvania Suburbs | Four Radnor Corporate Center
Initial Cost
Land		5,406
Buildings and Improvements		21,390
Net Improvements (Retirements) Since Acquisition		11,094
Gross Amount Which Carried
Land		5,705
Buildings and Improvements		32,185
Total		37,890
Accumulated Depreciation at December 31, 2021		17,219
Pennsylvania Suburbs | Five Radnor Corporate Center
Initial Cost
Land		6,506
Buildings and Improvements		25,525
Net Improvements (Retirements) Since Acquisition		8,682
Gross Amount Which Carried
Land		6,578
Buildings and Improvements		34,135
Total		40,713
Accumulated Depreciation at December 31, 2021		15,124
Pennsylvania Suburbs | Three Radnor Corporate Center
Initial Cost
Land		4,773
Buildings and Improvements		17,961
Net Improvements (Retirements) Since Acquisition		2,016
Gross Amount Which Carried
Land		4,791
Buildings and Improvements		19,959
Total		24,750
Accumulated Depreciation at December 31, 2021		11,401
Pennsylvania Suburbs | Two Radnor Corporate Center
Initial Cost
Land		3,937
Buildings and Improvements		15,484
Net Improvements (Retirements) Since Acquisition		2,685
Gross Amount Which Carried
Land		3,942
Buildings and Improvements		18,164
Total		22,106
Accumulated Depreciation at December 31, 2021		11,120
Pennsylvania Suburbs | 130 Radnor Chester Road
Initial Cost
Land		2,573
Buildings and Improvements		8,338
Net Improvements (Retirements) Since Acquisition		(134)
Gross Amount Which Carried
Land		2,567
Buildings and Improvements		8,210
Total		10,777
Accumulated Depreciation at December 31, 2021		3,997
Pennsylvania Suburbs | 170 Radnor Chester Road
Initial Cost
Land		2,514
Buildings and Improvements		8,147
Net Improvements (Retirements) Since Acquisition		1,667
Gross Amount Which Carried
Land		2,509
Buildings and Improvements		9,819
Total		12,328
Accumulated Depreciation at December 31, 2021		5,138
Pennsylvania Suburbs | 200 Radnor Chester Road
Initial Cost
Land		3,366
Buildings and Improvements		0
Net Improvements (Retirements) Since Acquisition		3,621
Gross Amount Which Carried
Land		3,366
Buildings and Improvements		3,621
Total		6,987
Accumulated Depreciation at December 31, 2021		995
Pennsylvania Suburbs | 101 West Elm Street
Initial Cost
Land		6,251
Buildings and Improvements		25,209
Net Improvements (Retirements) Since Acquisition		3,057
Gross Amount Which Carried
Land		6,251
Buildings and Improvements		28,266
Total		34,517
Accumulated Depreciation at December 31, 2021		11,729
Pennsylvania Suburbs | 1 West Elm Street
Initial Cost
Land		3,557
Buildings and Improvements		14,249
Net Improvements (Retirements) Since Acquisition		7,712
Gross Amount Which Carried
Land		3,557
Buildings and Improvements		21,961
Total		25,518
Accumulated Depreciation at December 31, 2021		6,723
Pennsylvania Suburbs | Four Tower Bridge (200 Barr Harbor Drive)
Initial Cost
Land		6,000
Buildings and Improvements		14,734
Net Improvements (Retirements) Since Acquisition		402
Gross Amount Which Carried
Land		6,000
Buildings and Improvements		15,136
Total		21,136
Accumulated Depreciation at December 31, 2021		$ 1,650
Philadelphia CBD | Cira Centre (2929 Arch Street)
Initial Cost
Land	0
Buildings and Improvements	208,570
Net Improvements (Retirements) Since Acquisition	(22,427)
Gross Amount Which Carried
Land	12,586
Buildings and Improvements	173,557
Total	186,143
Accumulated Depreciation at December 31, 2021	67,765
Philadelphia CBD | Three Logan Square (1717 Arch Street)
Initial Cost
Land	0
Buildings and Improvements	98,188
Net Improvements (Retirements) Since Acquisition	84,992
Gross Amount Which Carried
Land	25,195
Buildings and Improvements	157,985
Total	183,180
Accumulated Depreciation at December 31, 2021	54,136
Philadelphia CBD | One Logan Square (130 North 18th Street)
Initial Cost
Land	14,496
Buildings and Improvements	107,736
Net Improvements (Retirements) Since Acquisition	21,633
Gross Amount Which Carried
Land	14,473
Buildings and Improvements	129,392
Total	143,865
Accumulated Depreciation at December 31, 2021	65,373
Philadelphia CBD | Two Logan Square (100 North 18th Street)
Initial Cost
Land	16,066
Buildings and Improvements	100,255
Net Improvements (Retirements) Since Acquisition	26,795
Gross Amount Which Carried
Land	16,066
Buildings and Improvements	127,050
Total	143,116
Accumulated Depreciation at December 31, 2021	56,054
Philadelphia CBD | Cira Centre South Garage (129 South 30th Street)
Initial Cost
Land	0
Buildings and Improvements	76,008
Net Improvements (Retirements) Since Acquisition	26,885
Gross Amount Which Carried
Land	6,727
Buildings and Improvements	96,166
Total	102,893
Accumulated Depreciation at December 31, 2021	25,080
Philadelphia CBD | 1900 Market Street
Initial Cost
Land	7,768
Buildings and Improvements	17,263
Net Improvements (Retirements) Since Acquisition	61,783
Gross Amount Which Carried
Land	7,768
Buildings and Improvements	79,046
Total	86,814
Accumulated Depreciation at December 31, 2021	25,142
Philadelphia CBD | 3020 Market Street
Initial Cost
Land	0
Buildings and Improvements	21,417
Net Improvements (Retirements) Since Acquisition	7,751
Gross Amount Which Carried
Land	0
Buildings and Improvements	29,168
Total	29,168
Accumulated Depreciation at December 31, 2021	12,800
Philadelphia CBD | 618-634 Market Street
Initial Cost
Land	13,365
Buildings and Improvements	5,791
Net Improvements (Retirements) Since Acquisition	5,186
Gross Amount Which Carried
Land	13,365
Buildings and Improvements	10,977
Total	24,342
Accumulated Depreciation at December 31, 2021	6,821
Philadelphia CBD | FMC Tower at Cira Centre South (2929 Walnut Street)
Initial Cost
Land	0
Buildings and Improvements	400,294
Net Improvements (Retirements) Since Acquisition	9,493
Gross Amount Which Carried
Land	0
Buildings and Improvements	409,787
Total	409,787
Accumulated Depreciation at December 31, 2021	70,803
Philadelphia CBD | 2100 Market Street
Initial Cost
Land	18,827
Buildings and Improvements	0
Net Improvements (Retirements) Since Acquisition	6,300
Gross Amount Which Carried
Land	18,854
Buildings and Improvements	6,273
Total	25,127
Accumulated Depreciation at December 31, 2021	1,858
Philadelphia CBD | 1505-11 Race Street
Initial Cost
Land	3,662
Buildings and Improvements	6,061
Net Improvements (Retirements) Since Acquisition	8
Gross Amount Which Carried
Land	3,670
Buildings and Improvements	6,061
Total	9,731
Accumulated Depreciation at December 31, 2021	177
Philadelphia CBD | 3000 Market Street
Initial Cost
Land	18,924
Buildings and Improvements	13,080
Net Improvements (Retirements) Since Acquisition	16,264
Gross Amount Which Carried
Land	18,924
Buildings and Improvements	29,344
Total	48,268
Accumulated Depreciation at December 31, 2021	504
Philadelphia CBD | The Bulletin Building (3025 Market Street)
Initial Cost
Land	0
Buildings and Improvements	24,377
Net Improvements (Retirements) Since Acquisition	43,599
Gross Amount Which Carried
Land	0
Buildings and Improvements	67,976
Total	67,976
Accumulated Depreciation at December 31, 2021	7,928
Philadelphia CBD | 3001-3003 JFK Boulevard
Initial Cost
Land	0
Buildings and Improvements	0
Net Improvements (Retirements) Since Acquisition	111
Gross Amount Which Carried
Land	0
Buildings and Improvements	111
Total	111
Accumulated Depreciation at December 31, 2021	24
Metropolitan Washington, D.C. | 6600 Rockledge Drive
Initial Cost
Land	0
Buildings and Improvements	37,421
Net Improvements (Retirements) Since Acquisition	9,956
Gross Amount Which Carried
Land	0
Buildings and Improvements	47,377
Total	47,377
Accumulated Depreciation at December 31, 2021	17,816
Metropolitan Washington, D.C. | 1676 International Drive
Initial Cost
Land	18,437
Buildings and Improvements	97,538
Net Improvements (Retirements) Since Acquisition	25,740
Gross Amount Which Carried
Land	18,785
Buildings and Improvements	122,930
Total	141,715
Accumulated Depreciation at December 31, 2021	31,083
Metropolitan Washington, D.C. | 8260 Greensboro Drive
Initial Cost
Land	7,952
Buildings and Improvements	33,964
Net Improvements (Retirements) Since Acquisition	8,114
Gross Amount Which Carried
Land	8,102
Buildings and Improvements	41,928
Total	50,030
Accumulated Depreciation at December 31, 2021	13,598
Metropolitan Washington, D.C. | 8521 Leesburg Pike
Initial Cost
Land	4,316
Buildings and Improvements	30,885
Net Improvements (Retirements) Since Acquisition	6,575
Gross Amount Which Carried
Land	4,397
Buildings and Improvements	37,379
Total	41,776
Accumulated Depreciation at December 31, 2021	14,332
Austin, Texas | 401-405 Colorado Street
Initial Cost
Land	0
Buildings and Improvements	47,132
Net Improvements (Retirements) Since Acquisition	0
Gross Amount Which Carried
Land	0
Buildings and Improvements	47,132
Total	47,132
Accumulated Depreciation at December 31, 2021	491
Austin, Texas | 11501 Burnet Road - Building 1
Initial Cost
Land	3,755
Buildings and Improvements	22,702
Net Improvements (Retirements) Since Acquisition	4
Gross Amount Which Carried
Land	3,755
Buildings and Improvements	22,706
Total	26,461
Accumulated Depreciation at December 31, 2021	6,062
Austin, Texas | 11501 Burnet Road - Building 2
Initial Cost
Land	2,732
Buildings and Improvements	16,305
Net Improvements (Retirements) Since Acquisition	1,473
Gross Amount Which Carried
Land	2,732
Buildings and Improvements	17,778
Total	20,510
Accumulated Depreciation at December 31, 2021	5,252
Austin, Texas | 11501 Burnet Road - Building 3
Initial Cost
Land	3,688
Buildings and Improvements	22,348
Net Improvements (Retirements) Since Acquisition	(1,510)
Gross Amount Which Carried
Land	3,688
Buildings and Improvements	20,838
Total	24,526
Accumulated Depreciation at December 31, 2021	5,560
Austin, Texas | 11501 Burnet Road - Building 4
Initial Cost
Land	2,614
Buildings and Improvements	15,740
Net Improvements (Retirements) Since Acquisition	3
Gross Amount Which Carried
Land	2,614
Buildings and Improvements	15,743
Total	18,357
Accumulated Depreciation at December 31, 2021	4,203
Austin, Texas | 11501 Burnet Road - Building 5
Initial Cost
Land	3,689
Buildings and Improvements	22,354
Net Improvements (Retirements) Since Acquisition	4
Gross Amount Which Carried
Land	3,689
Buildings and Improvements	22,358
Total	26,047
Accumulated Depreciation at December 31, 2021	5,970
Austin, Texas | 11501 Burnet Road - Building 6
Initial Cost
Land	2,676
Buildings and Improvements	15,972
Net Improvements (Retirements) Since Acquisition	13,964
Gross Amount Which Carried
Land	2,676
Buildings and Improvements	29,936
Total	32,612
Accumulated Depreciation at December 31, 2021	8,808
Austin, Texas | 11501 Burnet Road - Building 8
Initial Cost
Land	1,400
Buildings and Improvements	7,422
Net Improvements (Retirements) Since Acquisition	1,521
Gross Amount Which Carried
Land	1,400
Buildings and Improvements	8,943
Total	10,343
Accumulated Depreciation at December 31, 2021	2,452
Austin, Texas | 11501 Burnet Road - Parking Garage
Initial Cost
Land	0
Buildings and Improvements	19,826
Net Improvements (Retirements) Since Acquisition	3
Gross Amount Which Carried
Land	0
Buildings and Improvements	19,829
Total	19,829
Accumulated Depreciation at December 31, 2021	6,289
Austin, Texas | Four Points Centre 3, 11120 Four Points Drive
Initial Cost
Land	1,140
Buildings and Improvements	0
Net Improvements (Retirements) Since Acquisition	40,322
Gross Amount Which Carried
Land	1,141
Buildings and Improvements	40,321
Total	41,462
Accumulated Depreciation at December 31, 2021	5,062
Austin, Texas | One Barton Skyway (1501 South MoPac Expressway)
Initial Cost
Land	10,496
Buildings and Improvements	47,670
Net Improvements (Retirements) Since Acquisition	5,421
Gross Amount Which Carried
Land	10,495
Buildings and Improvements	53,092
Total	63,587
Accumulated Depreciation at December 31, 2021	4,697
Austin, Texas | Two Barton Skyway (1601 South MoPac Expressway)
Initial Cost
Land	10,849
Buildings and Improvements	53,868
Net Improvements (Retirements) Since Acquisition	3,454
Gross Amount Which Carried
Land	10,848
Buildings and Improvements	57,323
Total	68,171
Accumulated Depreciation at December 31, 2021	5,390
Austin, Texas | Three Barton Skyway (1221 South MoPac Expressway)
Initial Cost
Land	10,374
Buildings and Improvements	47,624
Net Improvements (Retirements) Since Acquisition	286
Gross Amount Which Carried
Land	10,373
Buildings and Improvements	47,911
Total	58,284
Accumulated Depreciation at December 31, 2021	3,865
Austin, Texas | Four Barton Skyway (1301 South MoPac Expressway)
Initial Cost
Land	13,301
Buildings and Improvements	57,041
Net Improvements (Retirements) Since Acquisition	4,060
Gross Amount Which Carried
Land	13,300
Buildings and Improvements	61,102
Total	74,402
Accumulated Depreciation at December 31, 2021	5,044
Austin, Texas | Four Points Centre (11305 Four Points Drive)
Initial Cost
Land	7,800
Buildings and Improvements	43,581
Net Improvements (Retirements) Since Acquisition	3,981
Gross Amount Which Carried
Land	7,800
Buildings and Improvements	47,562
Total	55,362
Accumulated Depreciation at December 31, 2021	4,640
Austin, Texas | River Place - Building 1 (6500 River Place Boulevard)
Initial Cost
Land	2,004
Buildings and Improvements	17,680
Net Improvements (Retirements) Since Acquisition	547
Gross Amount Which Carried
Land	2,004
Buildings and Improvements	18,227
Total	20,231
Accumulated Depreciation at December 31, 2021	1,624
Austin, Texas | River Place - Building 2 (6500 River Place Boulevard)
Initial Cost
Land	3,137
Buildings and Improvements	29,254
Net Improvements (Retirements) Since Acquisition	675
Gross Amount Which Carried
Land	3,137
Buildings and Improvements	29,929
Total	33,066
Accumulated Depreciation at December 31, 2021	2,490
Austin, Texas | River Place - Building 3 (6500 River Place Boulevard)
Initial Cost
Land	3,064
Buildings and Improvements	26,705
Net Improvements (Retirements) Since Acquisition	294
Gross Amount Which Carried
Land	3,064
Buildings and Improvements	26,999
Total	30,063
Accumulated Depreciation at December 31, 2021	2,164
Austin, Texas | River Place - Building 4 (6500 River Place Boulevard
Initial Cost
Land	2,273
Buildings and Improvements	18,617
Net Improvements (Retirements) Since Acquisition	1,141
Gross Amount Which Carried
Land	2,273
Buildings and Improvements	19,758
Total	22,031
Accumulated Depreciation at December 31, 2021	2,030
Austin, Texas | River Place - Building 5 (6500 River Place Boulevard)
Initial Cost
Land	1,752
Buildings and Improvements	14,315
Net Improvements (Retirements) Since Acquisition	106
Gross Amount Which Carried
Land	1,752
Buildings and Improvements	14,421
Total	16,173
Accumulated Depreciation at December 31, 2021	1,161
Austin, Texas | River Place - Building 6 (6500 River Place Boulevard)
Initial Cost
Land	1,598
Buildings and Improvements	12,945
Net Improvements (Retirements) Since Acquisition	30
Gross Amount Which Carried
Land	1,598
Buildings and Improvements	12,975
Total	14,573
Accumulated Depreciation at December 31, 2021	1,027
Austin, Texas | River Place - Building 7 (6500 River Place Boulevard)
Initial Cost
Land	1,801
Buildings and Improvements	16,486
Net Improvements (Retirements) Since Acquisition	1,103
Gross Amount Which Carried
Land	1,801
Buildings and Improvements	17,589
Total	19,390
Accumulated Depreciation at December 31, 2021	1,837
Austin, Texas | Quarry Lake II (4516 Seton Center Parkway)
Initial Cost
Land	3,970
Buildings and Improvements	30,546
Net Improvements (Retirements) Since Acquisition	1,024
Gross Amount Which Carried
Land	3,867
Buildings and Improvements	31,673
Total	35,540
Accumulated Depreciation at December 31, 2021	2,681
Other | 10 Foster Avenue
Initial Cost
Land	244
Buildings and Improvements	971
Net Improvements (Retirements) Since Acquisition	110
Gross Amount Which Carried
Land	244
Buildings and Improvements	1,081
Total	1,325
Accumulated Depreciation at December 31, 2021	666
Other | 7 Foster Avenue
Initial Cost
Land	231
Buildings and Improvements	921
Net Improvements (Retirements) Since Acquisition	31
Gross Amount Which Carried
Land	231
Buildings and Improvements	952
Total	1,183
Accumulated Depreciation at December 31, 2021	601
Other | 2 Foster Avenue
Initial Cost
Land	185
Buildings and Improvements	730
Net Improvements (Retirements) Since Acquisition	11
Gross Amount Which Carried
Land	185
Buildings and Improvements	741
Total	926
Accumulated Depreciation at December 31, 2021	741
Other | 4 Foster Avenue
Initial Cost
Land	183
Buildings and Improvements	726
Net Improvements (Retirements) Since Acquisition	6
Gross Amount Which Carried
Land	183
Buildings and Improvements	732
Total	915
Accumulated Depreciation at December 31, 2021	732
Other | 1 Foster Avenue
Initial Cost
Land	93
Buildings and Improvements	364
Net Improvements (Retirements) Since Acquisition	8
Gross Amount Which Carried
Land	93
Buildings and Improvements	372
Total	465
Accumulated Depreciation at December 31, 2021	372
Other | 5 U.S. Avenue
Initial Cost
Land	21
Buildings and Improvements	81
Net Improvements (Retirements) Since Acquisition	2
Gross Amount Which Carried
Land	21
Buildings and Improvements	83
Total	104
Accumulated Depreciation at December 31, 2021	83
Other | 5 Foster Avenue
Initial Cost
Land	9
Buildings and Improvements	32
Net Improvements (Retirements) Since Acquisition	3
Gross Amount Which Carried
Land	9
Buildings and Improvements	35
Total	44
Accumulated Depreciation at December 31, 2021	35
Other | Main Street-Plaza 1000
Initial Cost
Land	2,732
Buildings and Improvements	10,942
Net Improvements (Retirements) Since Acquisition	284
Gross Amount Which Carried
Land	2,732
Buildings and Improvements	11,226
Total	13,958
Accumulated Depreciation at December 31, 2021	11,036
Other | Main Street-Piazza
Initial Cost
Land	696
Buildings and Improvements	2,802
Net Improvements (Retirements) Since Acquisition	3,631
Gross Amount Which Carried
Land	704
Buildings and Improvements	6,425
Total	7,129
Accumulated Depreciation at December 31, 2021	4,214
Other | Main Street-Promenade
Initial Cost
Land	532
Buildings and Improvements	2,052
Net Improvements (Retirements) Since Acquisition	285
Gross Amount Which Carried
Land	532
Buildings and Improvements	2,337
Total	2,869
Accumulated Depreciation at December 31, 2021	1,476
Other | 920 North King Street
Initial Cost
Land	6,141
Buildings and Improvements	21,140
Net Improvements (Retirements) Since Acquisition	8,037
Gross Amount Which Carried
Land	6,141
Buildings and Improvements	29,177
Total	35,318
Accumulated Depreciation at December 31, 2021	15,938
Other | 300 Delaware Avenue
Initial Cost
Land	6,369
Buildings and Improvements	13,739
Net Improvements (Retirements) Since Acquisition	2,468
Gross Amount Which Carried
Land	6,369
Buildings and Improvements	16,207
Total	22,576
Accumulated Depreciation at December 31, 2021	$ 9,731

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Schedule III - Real Estate and Accumulated Depreciation (Reconciliations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Balance at the Beginning of the Year	$ 3,474,109	$ 4,006,459	$ 3,951,719
Additions:
Acquisitions	0	9,722	0
Capital expenditures and assets placed into service	134,931	113,221	145,378
Less:
Dispositions/impairments/placed into redevelopment	(82,247)	(619,086)	(50,792)
Retirements	(54,191)	(36,207)	(39,846)
Balance at the end of the year	3,472,602	3,474,109	4,006,459
Operating properties	3,472,602	3,474,109	4,006,459
Tax basis of assets, cost for income tax purposes	3,100,000	2,900,000
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward]
Balance at the beginning of the year	896,561	973,318	885,407
Additions:
Depreciation expense	136,171	138,822	144,131
Less:
Dispositions/impairments/placed into redevelopment	(24,440)	(182,526)	(16,783)
Retirements	(50,842)	(33,053)	(39,437)
Balance at the end of the year	957,450	896,561	973,318
Per consolidated balance sheet	957,450	896,561	$ 973,318
BRANDYWINE OPERATING PARTNERSHIP, L.P.
Less:
Operating properties	3,472,602	3,474,109
Tax basis of assets, cost for income tax purposes	3,100,000	2,900,000
Less:
Per consolidated balance sheet	$ 957,450	$ 896,561
Leashold Interest Land
Less:
Lease agreement term	99 years
Maximum
Less:
Useful life	55 years