10-Q 1 bdn-10q_20170930.htm 10-Q bdn-10q_20170930.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended September 30, 2017

or

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

For the transition period from                      to                     

Commission file number

001-9106 (Brandywine Realty Trust)

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

 

Brandywine Realty Trust

Brandywine Operating Partnership, L.P.

(Exact name of registrant as specified in its charter)

 

 

MARYLAND (Brandywine Realty Trust)

 

23-2413352

DELAWARE (Brandywine Operating Partnership L.P.)

 

23-2862640

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

2929 Walnut Street

Suite 1700

 

 

Philadelphia, Pennsylvania

 

19104

(Address of principal executive offices)

 

(Zip Code)

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

 

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

 

Brandywine Realty Trust

 

Yes   No 

Brandywine Operating Partnership, L.P.

 

Yes   No 

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

 

Brandywine Realty Trust

 

Yes   No

Brandywine Operating Partnership, L.P.

 

Yes   No

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

Brandywine Realty Trust:

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

 

 

Brandywine Operating Partnership, L.P.:

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company 

Emerging growth company 

 

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

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

 

Brandywine Realty Trust

 

Yes   No 

Brandywine Operating Partnership, L.P.

 

Yes   No 

 


 

A total of 175,477,498 Common Shares of Beneficial Interest, par value $0.01 per share of Brandywine Realty Trust, were outstanding as of October 20, 2017.

 

 


EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended September 30, 2017 of Brandywine Realty Trust (the “Parent Company”) and Brandywine Operating Partnership L.P. (the “Operating Partnership”). The Parent Company is a Maryland real estate investment trust, or REIT, that owns its assets and conducts its operations through the Operating Partnership, a Delaware limited partnership, and subsidiaries of the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company”. In addition, as used in this report, terms such as “we”, “us”, and “our” may refer to the Company, the Parent Company, or the Operating Partnership.

The Parent Company is the sole general partner of the Operating Partnership and, as of September 30, 2017, owned a 99.2% interest in the Operating Partnership. The remaining 0.8% interest consists of common units of limited partnership interest issued by the Operating Partnership to third parties in exchange for contributions of properties to the Operating Partnership. As the sole general partner of the Operating Partnership, the Parent Company has full and complete authority over the Operating Partnership’s day-to-day operations and management.

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

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

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

 

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

 

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

 

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

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

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

3


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

 

Consolidated Financial Statements; and

 

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

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

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

 

4


TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I — FINANCIAL INFORMATION

 

 

 

 

 

Item 1. Financial Statements

 

 

 

 

 

Brandywine Realty Trust

 

 

 

 

 

Financial Statements of Brandywine Realty Trust

 

6

 

 

 

Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016

 

6

 

 

 

Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2017 and 2016

 

7

 

 

 

Consolidated Statements of Comprehensive Income for the three and nine-month periods ended September 30, 2017 and 2016

 

8

 

 

 

Consolidated Statements of Beneficiaries’ Equity for the nine-month periods ended September 30, 2017 and 2016

 

9

 

 

 

Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2017 and 2016

 

11

 

 

 

Brandywine Operating Partnership, L.P.

 

 

 

 

 

Financial Statements of Brandywine Operating Partnership, L.P.

 

13

 

 

 

Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016

 

13

 

 

 

Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2017 and 2016

 

14

 

 

 

Consolidated Statements of Comprehensive Income for the three and nine-month periods ended September 30, 2017 and 2016

 

15

 

 

 

Consolidated Statements of Partners’ Equity for the nine-month periods ended September 30, 2017 and 2016

 

16

 

 

 

Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2017 and 2016

 

18

 

 

 

Notes to Unaudited Consolidated Financial Statements

 

20

 

 

 

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

 

42

 

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

66

 

 

 

Item 4. Controls and Procedures

 

67

 

 

 

PART II — OTHER INFORMATION

 

68

 

 

 

Item 1. Legal Proceedings

 

68

 

 

 

Item 1A. Risk Factors

 

68

 

 

 

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

 

68

 

 

 

Item 3. Defaults Upon Senior Securities

 

68

 

 

 

Item 4. Mine Safety Disclosures

 

68

 

 

 

Item 5. Other Information

 

68

 

 

 

Item 6. Exhibits

 

69

 

 

 

Signatures

 

70

 

 

 

 

 

 

Filing Format

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

 

5


PART I - FINANCIAL INFORMATION

Item 1. — Financial Statements

BRANDYWINE REALTY TRUST

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)

 

 

 

September 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

ASSETS

 

(unaudited)

 

 

 

 

 

Real estate investments:

 

 

 

 

 

 

 

 

Operating properties

 

$

3,769,067

 

 

$

3,586,295

 

Accumulated depreciation

 

 

(885,438

)

 

 

(852,476

)

Operating real estate investments, net

 

 

2,883,629

 

 

 

2,733,819

 

Construction-in-progress

 

 

127,141

 

 

 

297,462

 

Land held for development

 

 

120,696

 

 

 

150,970

 

Total real estate investments, net

 

 

3,131,466

 

 

 

3,182,251

 

Assets held for sale, net

 

 

31,125

 

 

 

41,718

 

Cash and cash equivalents

 

 

25,287

 

 

 

193,919

 

Accounts receivable, net of allowance of $3,294 and $2,373 as of September 30, 2017 and December 31, 2016, respectively

 

 

14,785

 

 

 

12,446

 

Accrued rent receivable, net of allowance of $13,731 and $13,743 as of September 30, 2017 and December 31, 2016, respectively

 

 

166,093

 

 

 

149,624

 

Investment in Real Estate Ventures, equity method

 

 

236,313

 

 

 

281,331

 

Deferred costs, net

 

 

96,980

 

 

 

91,342

 

Intangible assets, net

 

 

58,817

 

 

 

72,478

 

Other assets

 

 

94,553

 

 

 

74,104

 

Total assets

 

$

3,855,419

 

 

$

4,099,213

 

LIABILITIES AND BENEFICIARIES' EQUITY

 

 

 

 

 

 

 

 

Mortgage notes payable, net

 

$

318,317

 

 

$

321,549

 

Unsecured credit facility

 

 

178,000

 

 

 

-

 

Unsecured term loans, net

 

 

248,347

 

 

 

248,099

 

Unsecured senior notes, net

 

 

1,144,976

 

 

 

1,443,464

 

Accounts payable and accrued expenses

 

 

112,413

 

 

 

103,404

 

Distributions payable

 

 

28,391

 

 

 

30,032

 

Deferred income, gains and rent

 

 

41,468

 

 

 

31,620

 

Acquired lease intangibles, net

 

 

17,156

 

 

 

18,119

 

Liabilities related to assets held for sale

 

 

269

 

 

 

81

 

Other liabilities

 

 

15,512

 

 

 

19,408

 

Total liabilities

 

$

2,104,849

 

 

$

2,215,776

 

Commitments and contingencies (See Note 13)

 

 

 

 

 

 

 

 

Brandywine Realty Trust's Equity:

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

6.90% Series E Preferred Shares, $0.01 par value; issued and outstanding- 0 as of September 30, 2017 and 4,000,000 as of December 31, 2016

 

 

-

 

 

 

40

 

Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 175,477,498 and 175,140,760 issued and outstanding as of September 30, 2017 and December 31, 2016, respectively

 

 

1,755

 

 

 

1,752

 

Additional paid-in-capital

 

 

3,167,481

 

 

 

3,258,870

 

Deferred compensation payable in common shares

 

 

14,090

 

 

 

13,684

 

Common shares in grantor trust, 1,000,966 as of September 30, 2017, 899,457 as of December 31, 2016

 

 

(14,090

)

 

 

(13,684

)

Cumulative earnings

 

 

586,954

 

 

 

539,319

 

Accumulated other comprehensive loss

 

 

(906

)

 

 

(1,745

)

Cumulative distributions

 

 

(2,021,568

)

 

 

(1,931,892

)

Total Brandywine Realty Trust's equity

 

 

1,733,716

 

 

 

1,866,344

 

Non-controlling interests

 

 

16,854

 

 

 

17,093

 

Total beneficiaries' equity

 

$

1,750,570

 

 

$

1,883,437

 

Total liabilities and beneficiaries' equity

 

$

3,855,419

 

 

$

4,099,213

 

 

 

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

 

 

6


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF OPERATIONS

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

 

 

Three-month periods ended

 

 

Nine-month periods ended

 

 

September 30,

 

 

September 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rents

$

102,557

 

 

$

104,537

 

 

$

307,446

 

 

$

318,324

 

Tenant reimbursements

 

17,239

 

 

 

17,324

 

 

 

53,812

 

 

 

53,315

 

Termination fees

 

200

 

 

 

611

 

 

 

2,013

 

 

 

1,459

 

Third party management fees, labor reimbursement and leasing

 

6,918

 

 

 

6,248

 

 

 

20,483

 

 

 

17,691

 

Other

 

1,524

 

 

 

974

 

 

 

3,395

 

 

 

2,588

 

Total revenue

 

128,438

 

 

 

129,694

 

 

 

387,149

 

 

 

393,377

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

36,847

 

 

 

37,250

 

 

 

110,947

 

 

 

114,208

 

Real estate taxes

 

11,235

 

 

 

11,566

 

 

 

34,062

 

 

 

34,933

 

Third party management expenses

 

2,619

 

 

 

2,501

 

 

 

7,391

 

 

 

7,172

 

Depreciation and amortization

 

42,429

 

 

 

46,956

 

 

 

132,584

 

 

 

142,736

 

General and administrative expenses

 

5,813

 

 

 

5,515

 

 

 

21,797

 

 

 

20,711

 

Provision for impairment

 

-

 

 

 

-

 

 

 

3,057

 

 

 

13,069

 

Total operating expenses

 

98,943

 

 

 

103,788

 

 

 

309,838

 

 

 

332,829

 

Operating income

 

29,495

 

 

 

25,906

 

 

 

77,311

 

 

 

60,548

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

79

 

 

 

291

 

 

 

635

 

 

 

970

 

Interest expense

 

(19,732

)

 

 

(20,814

)

 

 

(61,473

)

 

 

(64,334

)

Interest expense - amortization of deferred financing costs

 

(577

)

 

 

(645

)

 

 

(1,807

)

 

 

(2,063

)

Interest expense - financing obligation

 

-

 

 

 

(156

)

 

 

-

 

 

 

(679

)

Equity in loss of Real Estate Ventures

 

(5,723

)

 

 

(7,254

)

 

 

(5,387

)

 

 

(9,323

)

Net gain (loss) on disposition of real estate

 

-

 

 

 

(104

)

 

 

8,411

 

 

 

114,625

 

Net gain on sale of undepreciated real estate

 

953

 

 

 

188

 

 

 

953

 

 

 

188

 

Net gain on Real Estate Venture transactions

 

13,758

 

 

 

10,472

 

 

 

28,340

 

 

 

19,529

 

Loss on early extinguishment of debt

 

-

 

 

 

-

 

 

 

-

 

 

 

(66,590

)

Net income before income taxes

 

18,253

 

 

 

7,884

 

 

 

46,983

 

 

 

52,871

 

Income tax benefit

 

793

 

 

 

-

 

 

 

1,032

 

 

 

-

 

Net income

 

19,046

 

 

 

7,884

 

 

 

48,015

 

 

 

52,871

 

Net income attributable to non-controlling interests

 

(170

)

 

 

(58

)

 

 

(384

)

 

 

(425

)

Net income attributable to Brandywine Realty Trust

 

18,876

 

 

 

7,826

 

 

 

47,631

 

 

 

52,446

 

Distribution to preferred shareholders

 

-

 

 

 

(1,725

)

 

 

(2,032

)

 

 

(5,175

)

Preferred share redemption charge

 

-

 

 

 

-

 

 

 

(3,181

)

 

 

-

 

Nonforfeitable dividends allocated to unvested restricted shareholders

 

(73

)

 

 

(79

)

 

 

(245

)

 

 

(263

)

Net income attributable to Common Shareholders of Brandywine Realty Trust

$

18,803

 

 

$

6,022

 

 

$

42,173

 

 

$

47,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per Common Share

$

0.11

 

 

$

0.03

 

 

$

0.24

 

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted income per Common Share

$

0.11

 

 

$

0.03

 

 

$

0.24

 

 

$

0.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

175,433,657

 

 

 

175,127,110

 

 

 

175,315,581

 

 

 

174,976,998

 

Diluted weighted average shares outstanding

 

176,835,022

 

 

 

176,364,615

 

 

 

176,599,332

 

 

 

176,009,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per Common Share

$

0.16

 

 

$

0.16

 

 

$

0.48

 

 

$

0.47

 

 

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

 

 

7


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited, in thousands)

 

 

Three-month periods ended

 

 

Nine-month periods ended

 

 

September 30,

 

 

September 30,

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net income

$

19,046

 

 

$

7,884

 

 

$

48,015

 

 

$

52,871

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on derivative financial instruments

 

312

 

 

 

2,454

 

 

 

(59

)

 

 

(10,764

)

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

 

314

 

 

 

286

 

 

 

905

 

 

 

818

 

Total comprehensive income (loss)

 

626

 

 

 

2,740

 

 

 

846

 

 

 

(9,946

)

Comprehensive income

 

19,672

 

 

 

10,624

 

 

 

48,861

 

 

 

42,925

 

Comprehensive income attributable to non-controlling interest

 

(174

)

 

 

(81

)

 

 

(391

)

 

 

(339

)

Comprehensive income attributable to Brandywine Realty Trust

$

19,498

 

 

$

10,543

 

 

$

48,470

 

 

$

42,586

 

 

(1)

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

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

 

 

 

8


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY

For the nine-month period ended September 30, 2017

(unaudited, in thousands, except number of shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Preferred Shares

 

 

Par Value of Preferred Shares

 

 

Number of Common Shares

 

 

Number of Rabbi Trust/Deferred Compensation Shares

 

 

Common Shares of Brandywine Realty Trust's beneficial interest

 

 

Additional Paid-in Capital

 

 

Deferred Compensation Payable in Common Shares

 

 

Common Shares in Grantor Trust

 

 

Cumulative Earnings

 

 

Accumulated Other Comprehensive Income (Loss)

 

 

Cumulative Distributions

 

 

Non-Controlling Interests

 

 

Total

 

BALANCE, December 31, 2016

 

4,000,000

 

 

$

40

 

 

 

175,140,760

 

 

 

899,457

 

 

$

1,752

 

 

$

3,258,870

 

 

$

13,684

 

 

$

(13,684

)

 

$

539,319

 

 

$

(1,745

)

 

$

(1,931,892

)

 

$

17,093

 

 

$

1,883,437

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,631

 

 

 

 

 

 

 

 

 

 

 

384

 

 

 

48,015

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

839

 

 

 

 

 

 

 

7

 

 

 

846

 

Redemption of Preferred Shares

 

(4,000,000

)

 

 

(40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(96,810

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(96,850

)

Issuance of partnership interest in consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

85

 

 

 

85

 

Distributions from consolidated real estate venture

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(46

)

 

 

(46

)

Equity issuance costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(499

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(499

)

Bonus share issuance

 

 

 

 

 

 

 

 

 

6,752

 

 

 

 

 

 

 

 

 

 

 

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

110

 

Share-based compensation activity

 

 

 

 

 

 

 

 

 

333,127

 

 

 

39,870

 

 

 

3

 

 

 

5,900

 

 

 

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,907

 

Share Issuance from/(to) Deferred Compensation Plan

 

 

 

 

 

 

 

 

 

(1,718

)

 

 

61,639

 

 

 

 

 

 

 

(48

)

 

 

406

 

 

 

(406

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(48

)

Share Choice Plan issuance

 

 

 

 

 

 

 

 

 

(1,423

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Adjustment to Non-controlling Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(42

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42

 

 

 

-

 

Preferred Share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,032

)

 

 

 

 

 

 

(2,032

)

Preferred Share redemption charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,181

)

 

 

 

 

 

 

(3,181

)

Distributions declared ($0.48 per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(84,463

)

 

 

(711

)

 

 

(85,174

)

BALANCE, September 30, 2017

 

-

 

 

$

-

 

 

 

175,477,498

 

 

 

1,000,966

 

 

$

1,755

 

 

$

3,167,481

 

 

$

14,090

 

 

$

(14,090

)

 

$

586,954

 

 

$

(906

)

 

$

(2,021,568

)

 

$

16,854

 

 

$

1,750,570

 

 

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

 

9


BRANDYWINE REALTY TRUST

CONSOLIDATED STATEMENT OF BENEFICIARIES’ EQUITY

For the nine-month period ended September 30, 2016

(unaudited, in thousands, except number of shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Preferred Shares

 

 

Par Value of Preferred Shares

 

 

Number of Common Shares

 

 

Number of Rabbi Trust/Deferred Compensation Shares

 

 

Common Shares of Brandywine Realty Trust's beneficial interest

 

 

Additional Paid-in Capital

 

 

Deferred Compensation Payable in Common Shares

 

 

Common Shares in Grantor Trust

 

 

Cumulative Earnings

 

 

Accumulated Other Comprehensive Loss

 

 

Cumulative Distributions

 

 

Non-Controlling Interests

 

 

Total

 

BALANCE, December 31, 2015

 

4,000,000

 

 

$

40

 

 

 

174,688,568

 

 

 

745,686

 

 

$

1,747

 

 

$

3,252,622

 

 

$

11,918

 

 

$

(11,918

)

 

$

499,086

 

 

$

(5,192

)

 

$

(1,814,378

)

 

$

18,166

 

 

$

1,952,091

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52,446