10-Q 1 bdn-20240331.htm 10-Q bdn-20240331
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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 March 31, 2024
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)
_____________________________________________________________________________________________
Registrant’s telephone number, including area code (610) 325-5600
_____________________________________________________________________________________________
Maryland
(Brandywine Realty Trust)
001-910623-2413352
Delaware
(Brandywine Operating Partnership, L.P.)
000-2440723-2862640
(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)
Securities registered pursuant to section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares of Beneficial InterestBDNNYSE
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 TrustYes
  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 TrustYes
  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 companyEmerging growth company 
Brandywine Operating Partnership, L.P.:
Large accelerated filer
Accelerated filer 
Non-accelerated filer
 
Smaller reporting companyEmerging 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 TrustYes   
 No
Brandywine Operating Partnership, L.P.Yes   
 No
A total of 172,270,907 Common Shares of Beneficial Interest, par value $0.01 per share of Brandywine Realty Trust, were outstanding as of April 18, 2024.


EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2024 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 March 31, 2024, owned a 99.7% interest in the Operating Partnership. The remaining 0.3% 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:
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 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 incurrence of indebtedness (directly and through subsidiaries) and through the issuance of partnership units of the Operating Partnership or equity interests in subsidiaries of the Operating Partnership.
The equity and non-controlling interests in the Parent Company and the Operating Partnership’s equity are the main areas of difference between the consolidated financial statements of the Parent Company and the Operating Partnership. The common units of limited partnership interest in the Operating Partnership are accounted for as partners’ equity in the Operating Partnership’s financial statements while the common units of limited partnership interests held by parties other than the Parent Company are presented as non-controlling interests in the Parent Company’s financial statements. The differences between the Parent Company and the Operating Partnership’s equity relate to the differences in the equity issued at the Parent Company and Operating Partnership levels.
2

To help investors understand the 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 (the “Exchange Act”), and 18 U.S.C. § 1350.
In order to highlight the differences between the Parent Company and the Operating Partnership, the separate sections in this report for the Parent Company and the Operating Partnership specifically refer to the Parent Company and the Operating Partnership. In the sections that combine disclosures of the Parent Company and the Operating Partnership, this report refers to such disclosures as those of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and real estate ventures and holds assets and incurs debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.
3

TABLE OF CONTENTS
Page
Filing Format
This combined Form 10-Q is being filed separately by Brandywine Realty Trust and Brandywine Operating Partnership, L.P.
4

PART I - FINANCIAL INFORMATION
Item 1. — Financial Statements


BRANDYWINE REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except share and per share information)
March 31,
2024
December 31,
2023
ASSETS
Real estate investments:
Operating properties$3,549,674 $3,542,232 
Accumulated depreciation(1,163,782)(1,131,792)
Right of use asset - operating leases, net18,875 19,031 
Operating real estate investments, net2,404,767 2,429,471 
Construction-in-progress146,194 135,529 
Land held for development81,616 82,510 
Prepaid leasehold interests in land held for development, net27,762 27,762 
Total real estate investments, net2,660,339 2,675,272 
Cash and cash equivalents43,210 58,319 
Restricted cash and escrows8,089 9,215 
Accounts receivable11,628 11,977 
Accrued rent receivable, net of allowance of $2,435 and $2,672 as of March 31, 2024 and December 31, 2023, respectively
189,718 186,708 
Investment in unconsolidated real estate ventures618,042 601,227 
Deferred costs, net95,049 95,984 
Intangible assets, net7,112 7,694 
Other assets103,573 86,051 
Total assets$3,736,760 $3,732,447 
LIABILITIES AND BENEFICIARIES' EQUITY
Secured debt, net
$260,936 $255,671 
Unsecured credit facility37,000  
Unsecured term loan, net318,494 318,499 
Unsecured senior notes, net1,564,825 1,564,662 
Accounts payable and accrued expenses114,162 123,825 
Distributions payable26,248 26,017 
Deferred income, gains and rent25,363 24,248 
Intangible liabilities, net8,022 8,270 
Lease liability - operating leases23,415 23,369 
Other liabilities66,049 63,729 
Total liabilities$2,444,514 $2,408,290 
Commitments and contingencies (See Note 15)
Brandywine Realty Trust's Equity:
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 172,270,907 and 172,097,661 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
1,721 1,719 
Additional paid-in-capital3,168,661 3,163,949 
Deferred compensation payable in common shares19,996 19,965 
Common shares in grantor trust, 1,145,121 and 1,194,127 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
(19,996)(19,965)
Cumulative earnings963,038 979,406 
Accumulated other comprehensive income (loss)5,339 (668)
Cumulative distributions(2,853,199)(2,827,022)
Total Brandywine Realty Trust's equity1,285,560 1,317,384 
Noncontrolling interests6,686 6,773 
Total beneficiaries' equity$1,292,246 $1,324,157 
Total liabilities and beneficiaries' equity$3,736,760 $3,732,447 
The accompanying notes are an integral part of these consolidated financial statements.
5

BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share information)
Three Months Ended March 31,
20242023
Revenue
Rents$119,008 $120,848 
Third party management fees, labor reimbursement and leasing5,894 6,002 
Other1,582 2,377 
Total revenue126,484 129,227 
Operating expenses
Property operating expenses32,279 33,594 
Real estate taxes12,592 14,602 
Third party management expenses2,543 2,639 
Depreciation and amortization45,042 45,600 
General and administrative expenses11,104 9,482 
Total operating expenses103,560 105,917 
Gain on sale of real estate
Net gain on sale of undepreciated real estate 781 
Total gain on sale of real estate 781 
Operating income22,924 24,091 
Other income (expense):
Interest and investment income421 505 
Interest expense(25,049)(22,653)
Interest expense - amortization of deferred financing costs(1,091)(1,027)
Equity in loss of unconsolidated real estate ventures(13,588)(6,167)
Net loss on real estate venture transactions(29) 
Net loss before income taxes(16,412)(5,251)
Income tax provision(2)(25)
Net loss(16,414)(5,276)
Net loss attributable to noncontrolling interests46 17 
Net loss attributable to Brandywine Realty Trust(16,368)(5,259)
Nonforfeitable dividends allocated to unvested restricted shareholders(336)(70)
Net loss attributable to Common Shareholders of Brandywine Realty Trust$(16,704)$(5,329)
Basic loss per Common Share$(0.10)$(0.03)
Diluted loss per Common Share$(0.10)$(0.03)
Basic weighted average shares outstanding172,207,037 171,673,167 
Diluted weighted average shares outstanding172,207,037 171,673,167 
 
The accompanying notes are an integral part of these consolidated financial statements.
6

BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited, in thousands)
Three Months Ended March 31,
20242023
Net loss$(16,414)$(5,276)
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments6,026 (5,291)
Total comprehensive income (loss)6,026 (5,291)
Comprehensive loss(10,388)(10,567)
Comprehensive loss attributable to noncontrolling interest27 17 
Comprehensive loss attributable to Brandywine Realty Trust$(10,361)$(10,550)

The accompanying notes are an integral part of these consolidated financial statements.
7

BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY
(unaudited, in thousands, except number of shares)
Number of Common SharesNumber 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 EarningsAccumulated Other
Comprehensive Income (Loss)
Cumulative DistributionsNoncontrolling InterestsTotal
BALANCE, December 31, 2023172,097,661 1,194,127 $1,719 $3,163,949 $19,965 $(19,965)$979,406 $(668)$(2,827,022)$6,773 $1,324,157 
Net loss(16,368)(46)(16,414)
Other comprehensive income (loss)6,007 19 6,026 
Share-based compensation activity194,480 7,148 2 4,829 4,831 
Share Issuance from/(to) Deferred Compensation Plan(21,234)(56,154)(100)31 (31)(100)
Reallocation of Noncontrolling interest(17)17 
Distributions declared $0.15 per share)
(26,177)(77)(26,254)
BALANCE, March 31, 2024172,270,907 1,145,121 $1,721 $3,168,661 $19,996 $(19,996)$963,038 $5,339 $(2,853,199)$6,686 $1,292,246 
The accompanying notes are an integral part of these consolidated financial statements.
8

BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENT OF BENEFICIARIES’ EQUITY
(unaudited, in thousands, except number of shares)
Number of Common SharesNumber 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 EarningsAccumulated Other
Comprehensive Income (Loss)
Cumulative DistributionsNoncontrolling InterestsTotal
BALANCE, December 31, 2022
171,569,807 1,179,643 $1,716 $3,153,229 $19,601 $(19,601)$1,176,195 $3,897 $(2,709,405)$7,702 $1,633,334 
Net income(5,259)(17)(5,276)
Other comprehensive income(5,307)16 (5,291)
Share-based compensation activity171,318 22,449 1 3,370 3,371 
Share Issuance from/(to) Deferred Compensation Plan(13,422)(48,733)(88)145 (145)(88)
Reallocation of Noncontrolling interest(4)4 
Distributions declared ($0.19 per share)
(32,734)(98)(32,832)
BALANCE, March 31, 2023
171,727,703 1,153,359 $1,717 $3,156,507 $19,746 $(19,746)$1,170,936 $(1,410)$(2,742,139)$7,607 $1,593,218 

The accompanying notes are an integral part of these consolidated financial statements.
9

BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands) 
Three Months Ended March 31,
20242023
Cash flows from operating activities:
Net loss$(16,414)$(5,276)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization45,042 45,600 
Amortization of deferred financing costs1,091 1,027 
Amortization of debt discount/(premium), net(250)(258)
Amortization of stock compensation costs4,378 3,398 
Straight-line rent income(3,199)(2,835)
Amortization of acquired above (below) market leases, net(246)(376)
Ground rent expense197 201 
Net loss on real estate venture transactions29  
Total gain on sale of real estate (781)
Loss from unconsolidated real estate ventures, including income distributions13,588 6,167 
Income tax provision2 25 
Changes in assets and liabilities:
Accounts receivable1,452 (2,416)
Other assets(16,948)(16,040)
Accounts payable and accrued expenses(10,208)(19,911)
Deferred income, gains and rent1,199 (960)
Other liabilities4,098 (2,190)
Net cash provided by operating activities23,811 5,375 
Cash flows from investing activities:
Capital expenditures for tenant improvements(15,904)(13,637)
Capital expenditures for redevelopments(4,013)(14,114)
Capital expenditures for developments(7,404)(4,588)
Advances for the purchase of tenant assets, net of repayments(998)(26)
Investment in unconsolidated real estate ventures(26,975)(10,627)
Capital distributions from unconsolidated real estate ventures3,931 300 
Leasing costs paid(3,942)(2,331)
Net cash used in investing activities(55,305)(45,023)
Cash flows from financing activities:
Proceeds from credit facility borrowings37,000 115,000 
Repayments of credit facility borrowings (203,500)
Repayments of unsecured notes (54,301)
Proceeds from unsecured term loan 70,000 
Proceeds from secured term loan 245,000 
Proceeds from construction loan
5,076  
Debt financing costs paid(200)(4,414)
Shares used for employee taxes upon vesting of share awards(594)(652)
Distributions paid to shareholders(25,946)(32,703)
Distributions to noncontrolling interest(77)(98)
Net cash provided by financing activities15,259 134,332 
Increase/(Decrease) in cash and cash equivalents and restricted cash(16,235)94,684 
Cash and cash equivalents and restricted cash at beginning of period67,534 18,387 
Cash and cash equivalents and restricted cash at end of period$51,299 $113,071 
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period$58,319 $17,551 
Restricted cash, beginning of period9,215 836 
Cash and cash equivalents and restricted cash, beginning of period$67,534 $18,387 
Cash and cash equivalents, end of period$43,210 $96,945 
Restricted cash, end of period8,089 16,126 
Cash and cash equivalents and restricted cash, end of period$51,299 $113,071 
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the three months ended March 31, 2024 and 2023 of $3,918 and $4,072, respectively
$23,368 $17,007 
Cash paid for income taxes 1 
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid26,248 32,823 
Change in investment in real estate ventures as a result of deconsolidation 8,595 
Change in operating real estate from deconsolidation of operating properties (7,814)
Change in capital expenditures financed through accounts payable at period end(1,179)451 
Change in capital expenditures financed through retention payable at period end648 255 
The accompanying notes are an integral part of these consolidated financial statements.
10



BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except unit and per unit information)
March 31,
2024
December 31,
2023
ASSETS
Real estate investments:
Operating properties$3,549,674 $3,542,232 
Accumulated depreciation(1,163,782)(1,131,792)
Right of use asset - operating leases, net18,875 19,031 
Operating real estate investments, net2,404,767 2,429,471 
Construction-in-progress146,194 135,529 
Land held for development81,616 82,510 
Prepaid leasehold interests in land held for development, net27,762 27,762 
Total real estate investments, net2,660,339 2,675,272 
Cash and cash equivalents43,210 58,319 
Restricted cash and escrows8,089 9,215 
Accounts receivable11,628 11,977 
Accrued rent receivable, net of allowance of $2,435 and $2,672 as of March 31, 2024 and December 31, 2023, respectively
189,718 186,708 
Investment in unconsolidated real estate ventures618,042 601,227 
Deferred costs, net95,049 95,984 
Intangible assets, net7,112 7,694 
Other assets103,573 86,051 
Total assets$3,736,760 $3,732,447 
LIABILITIES AND PARTNERS' EQUITY
Secured debt, net
$260,936 $255,671 
Unsecured credit facility37,000  
Unsecured term loan, net318,494 318,499 
Unsecured senior notes, net1,564,825 1,564,662 
Accounts payable and accrued expenses114,162 123,825 
Distributions payable26,248 26,017 
Deferred income, gains and rent25,363 24,248 
Intangible liabilities, net8,022 8,270 
Lease liability - operating leases23,415 23,369 
Other liabilities66,049 63,729 
Total liabilities$2,444,514 $2,408,290 
Commitments and contingencies (See Note 15)
Redeemable limited partnership units at redemption value; 515,595 and 515,595 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
2,392 2,785 
Brandywine Operating Partnership, L.P.'s equity:
General Partnership Capital; 172,270,907 and 172,097,661 units issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
1,282,025 1,319,572 
Accumulated other comprehensive income (loss)5,016 (1,010)
Total Brandywine Operating Partnership, L.P.'s equity1,287,041 1,318,562 
Noncontrolling interest - consolidated real estate ventures2,813 2,810 
Total partners' equity$1,289,854 $1,321,372 
Total liabilities and partners' equity$3,736,760 $3,732,447 
The accompanying notes are an integral part of these consolidated financial statements.
11

BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except unit and per unit information)
Three Months Ended March 31,
20242023
Revenue
Rents$119,008 $120,848 
Third party management fees, labor reimbursement and leasing5,894 6,002 
Other1,582 2,377 
Total revenue126,484 129,227 
Operating expenses
Property operating expenses32,279 33,594 
Real estate taxes12,592 14,602 
Third party management expenses2,543 2,639 
Depreciation and amortization45,042 45,600 
General and administrative expenses11,104 9,482 
Total operating expenses103,560 105,917 
Gain on sale of real estate
Net gain on sale of undepreciated real estate 781 
Total gain on sale of real estate 781 
Operating income22,924 24,091 
Other income (expense):
Interest and investment income421 505 
Interest expense(25,049)(22,653)
Interest expense - amortization of deferred financing costs(1,091)(1,027)
Equity in loss of unconsolidated real estate ventures(13,588)(6,167)
Net loss on real estate venture transactions(29) 
Net loss before income taxes(16,412)(5,251)
Income tax provision(2)(25)
Net loss(16,414)(5,276)
Net (income) loss attributable to noncontrolling interests - consolidated real estate ventures(3)1 
Net loss attributable to Brandywine Operating Partnership(16,417)(5,275)
Nonforfeitable dividends allocated to unvested restricted unitholders(336)(70)
Net loss attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P.$(16,753)$(5,345)
Basic loss per Common Partnership Unit$(0.10)$(0.03)
Diluted loss per Common Partnership Unit$(0.10)$(0.03)
Basic weighted average common partnership units outstanding172,722,632 172,189,634 
Diluted weighted average common partnership units outstanding172,722,632 172,189,634 
The accompanying notes are an integral part of these consolidated financial statements.
12

BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited, in thousands)
Three Months Ended March 31,
20242023
Net loss$(16,414)$(5,276)
Comprehensive income (loss):
Unrealized gain (loss) on derivative financial instruments6,026 (5,291)
Total comprehensive income (loss)6,026 (5,291)
Comprehensive loss(10,388)(10,567)
Comprehensive (income) loss attributable to noncontrolling interest - consolidated real estate ventures(3)1 
Comprehensive loss attributable to Brandywine Operating Partnership$(10,391)$(10,566)

The accompanying notes are an integral part of these consolidated financial statements.
13

BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY
(unaudited, in thousands, except number of units)
General Partner Capital
UnitsAmountAccumulated Other Comprehensive IncomeNoncontrolling Interest - Consolidated Real Estate VenturesTotal Partners' Equity
BALANCE, December 31, 2023172,097,661 $1,319,572 $(1,010)$2,810 $1,321,372 
Net loss(16,417)3 (16,414)
Other comprehensive loss6,026 6,026 
Deferred compensation obligation(21,234)(100)(100)
Share-based compensation activity194,480 4,831 4,831 
Adjustment of redeemable partnership units to liquidation value at period end316 316 
Distributions declared to general partnership unitholders ($0.15 per unit)
(26,177)(26,177)
BALANCE, March 31, 2024172,270,907 $1,282,025 $5,016 $2,813 $1,289,854 
The accompanying notes are an integral part of these consolidated financial statements.
14

BRANDYWINE OPERATING PARTNERSHIP, L.P.
CONSOLIDATED STATEMENT OF PARTNERS’ EQUITY
(unaudited, in thousands, except number of units)
General Partner Capital
UnitsAmountAccumulated Other Comprehensive Income (Loss)Noncontrolling Interest - Consolidated Real Estate VenturesTotal Partners' Equity
BALANCE, December 31, 2022171,569,807 $1,623,738 $3,569 $2,832 $1,630,139 
Net loss(5,275)(1)(5,276)
Other comprehensive loss(5,291)(5,291)
Deferred compensation obligation(13,422)(88)(88)
Share-based compensation activity171,318 3,371 3,371 
Adjustment of redeemable partnership units to liquidation value at period end779 779 
Distributions declared to general partnership unitholders ($0.19 per unit)
(32,734)(32,734)
BALANCE, March 31, 2023
171,727,703 $1,589,791 $(1,722)$2,831 $1,590,900 


The accompanying notes are an integral part of these consolidated financial statements.
15

BRANDYWINE OPERATING PARTNERSHIP L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands) 
Three Months Ended March 31,
20242023
Cash flows from operating activities:
Net loss$(16,414)$(5,276)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization45,042 45,600 
Amortization of deferred financing costs1,091 1,027 
Amortization of debt discount/(premium), net(250)(258)
Amortization of stock compensation costs4,378 3,398 
Straight-line rent income(3,199)(2,835)
Amortization of acquired above (below) market leases, net(246)(376)
Ground rent expense197 201 
Net loss on real estate venture transactions29  
Total gain on sale of real estate (781)
Loss from unconsolidated real estate ventures, including income distributions13,588 6,167 
Income tax provision2 25 
Changes in assets and liabilities:
Accounts receivable1,452 (2,416)
Other assets(16,948)(16,040)
Accounts payable and accrued expenses(10,208)(19,911)
Deferred income, gains and rent1,199 (960)
Other liabilities4,098 (2,190)
Net cash provided by operating activities23,811 5,375 
Cash flows from investing activities:
Capital expenditures for tenant improvements(15,904)(13,637)
Capital expenditures for redevelopments(4,013)(14,114)
Capital expenditures for developments(7,404)(4,588)
Advances for the purchase of tenant assets, net of repayments(998)(26)
Investment in unconsolidated real estate ventures(26,975)(10,627)
Capital distributions from unconsolidated real estate ventures3,931 300 
Leasing costs paid(3,942)(2,331)
Net cash used in investing activities(55,305)(45,023)
Cash flows from financing activities:
Proceeds from credit facility borrowings37,000 115,000 
Repayments of credit facility borrowings (203,500)
Repayments of unsecured notes (54,301)
Proceeds from unsecured term loan 70,000 
Proceeds from secured term loan 245,000 
Proceeds from construction loan
5,076  
Debt financing costs paid(200)(4,414)
Shares used for employee taxes upon vesting of share awards(594)(652)
Distributions paid to preferred and common partnership units(26,023)(32,801)
Net cash provided by financing activities15,259 134,332 
Increase/(Decrease) in cash and cash equivalents and restricted cash(16,235)94,684 
Cash and cash equivalents and restricted cash at beginning of period67,534 18,387 
Cash and cash equivalents and restricted cash at end of period$51,299 $113,071 
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents, beginning of period$58,319 $17,551 
Restricted cash, beginning of period9,215 836 
Cash and cash equivalents and restricted cash, beginning of period$67,534 $18,387 
Cash and cash equivalents, end of period$43,210 $96,945 
Restricted cash, end of period8,089 16,126 
Cash and cash equivalents and restricted cash, end of period$51,299 $113,071 
Supplemental disclosure:
Cash paid for interest, net of capitalized interest during the three months ended March 31, 2024 and 2023 of $3,918 and $4,072, respectively
$23,368 $17,007 
Cash paid for income taxes 1 
Supplemental disclosure of non-cash activity:
Dividends and distributions declared but not paid26,248 32,823 
Change in investment in real estate ventures as a result of deconsolidation 8,595 
Change in operating real estate from deconsolidation of operating properties (7,814)
Change in capital expenditures financed through accounts payable at period end(1,179)451 
Change in capital expenditures financed through retention payable at period end648 255 
The accompanying notes are an integral part of these consolidated financial statements.
16

NOTES TO UNAUDITED 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 March 31, 2024, owned a 99.7% interest in the Operating Partnership. The Parent Company’s common shares of beneficial interest (“common shares”) 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 March 31, 2024, the Company owned 72 properties that contained an aggregate of approximately 13.0 million net rentable square feet (collectively, the “Properties”). The Company’s core portfolio of operating properties (the “Core Properties”) excludes development properties, redevelopment properties, recently completed properties, and properties held for sale. The Properties were comprised of the following as of March 31, 2024:
Number of PropertiesRentable Square Feet
Office properties65 11,773,665 
Mixed-use properties4 924,450 
Core Properties69 12,698,115 
Development property2 144,685 
Recently completed - not stabilized property1 168,294 
The Properties72 13,011,094 
In addition to the Properties, as of March 31, 2024, the Company owned 141.6 acres of land held for development. 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 5.1 additional acres of undeveloped land. As of March 31, 2024, 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 12.1 million net rentable square feet.
As of March 31, 2024, the Company also owned economic interests in twelve 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.
The Company conducts its third-party real estate management services business primarily through wholly-owned management company subsidiaries. As of March 31, 2024, the management company subsidiaries were managing properties containing an aggregate of approximately 22.3 million net rentable square feet, of which approximately 13.0 million net rentable square feet related to Properties owned by the Company and approximately 9.3 million net rentable square feet related to properties owned by third parties and unconsolidated real estate ventures.
Unless otherwise indicated, all references in this Form 10-Q to square feet represent net rentable area.
2. BASIS OF PRESENTATION
Basis of Presentation
The consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments consist solely of normal recurring matters, and result in a fair statement of the financial position of the Company as of March 31, 2024, the results of its operations for the three months ended March 31, 2024 and 2023 and its cash flows for the three months ended March 31, 2024 and 2023. The results of operations for such interim periods are not necessarily indicative of the results for a full year. These consolidated financial statements should be read in conjunction with the Parent Company’s and the Operating Partnership’s consolidated financial statements and footnotes included in their combined Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024.
The consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by GAAP for complete financial statements. The Company’s
17

Annual Report on Form 10-K for the year ended December 31, 2023 contains a discussion of the Company’s significant accounting policies under Note 2, “Summary of Significant Accounting Policies”. There have been no material changes in the Company’s significant accounting policies since December 31, 2023.
Use of Estimates
The preparation of financial statements in conformity with 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. The estimates and assumptions include, but are not limited to, common development cost estimates for the Company’s contributions to development joint ventures. The common development cost estimates for development joint venture contributions are highly judgmental, covering significant future time horizons and are sensitive to cost escalation, sales price escalation and absorption, which are affected by expectations about future market or economic conditions. Actual results could differ from these and other estimates.
Recent Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280). The new standard requires enhanced disclosures about significant segment expenses and other segment items and requires companies to disclose all annual disclosures about segments in interim periods. The new standard also permits companies to disclose more than one measure of segment profit or loss, requires disclosure of the title and position of the Chief Operating Decision Maker, and requires companies with a single reportable segment to provide all disclosures required by Topic 280. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and companies are required to apply the ASU retrospectively to all periods presented. The Company is currently evaluating the impact that the adoption of this standard will have on its financial statements and related disclosures.
3. REAL ESTATE INVESTMENTS
As of March 31, 2024 and December 31, 2023, the gross carrying value of the operating properties was as follows (in thousands):
March 31, 2024December 31, 2023
Land$394,628 $394,669 
Building and improvements2,677,619 2,671,024 
Tenant improvements477,427 476,539 
Total$3,549,674 $3,542,232 
4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
As of March 31, 2024, the Company held ownership interests in twelve unconsolidated real estate ventures, with a net aggregate investment balance of $565.8 million, which includes a negative investment balance in one unconsolidated real estate venture of $52.2 million, reflected within “Other liabilities” on the consolidated balance sheets. As of March 31, 2024, five of the real estate ventures owned properties that contained an aggregate of approximately 9.1 million net rentable square feet of office space; two real estate ventures owned 1.4 acres of land held for development; four real estate ventures owned 7.5 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.
The Company accounts for its interests in the unconsolidated real estate ventures, which range from 15% to 78%, 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 $1.9 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively.
The Company earned leasing commissions from the unconsolidated real estate ventures of $0.6 million and $0.7 million for the three months ended March 31, 2024 and 2023, respectively.
The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $2.7 million and $3.5 million as of March 31, 2024 and December 31, 2023, respectively.
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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 following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of March 31, 2024 and December 31, 2023 (in thousands):
March 31, 2024 (b)
December 31, 2023
Net property$1,959,104 $2,339,921 
Other assets416,628 534,658 
Other liabilities413,416 443,536 
Debt, net1,067,443 1,407,858 
Equity (a)894,873 1,023,185 
(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.
(b)Excludes amounts related to the Mid-Atlantic Office JV and Herndon Innovation Center Metro Portfolio Venture, LLC, as the Company discontinued applying the equity method of accounting after December 31, 2023.
The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the three-month periods ended March 31, 2024 and 2023 (in thousands):
Three Months Ended March 31,
20242023
Revenue$45,949 $57,886 
Operating expenses(24,881)(28,851)
Interest expense, net(17,363)(15,891)
Depreciation and amortization(20,889)(24,174)
Loss on property disposition(490)
Net loss$(17,674)$(11,030)
Ownership interest %VariousVarious
Company's share of net loss$(13,814)$(6,124)
Basis adjustments and other226 (43)
Equity in loss of unconsolidated real estate ventures$(13,588)$(6,167)
MAP Venture
The MAP Venture owns 57 office properties that contain an aggregate of 3,868,811 net rentable square feet located in the Pennsylvania Suburbs, New Jersey/Delaware, Metropolitan Washington, D.C. and Richmond, Virginia (the “MAP Venture”). The MAP Venture leases the land parcels under the 57 office properties through a ground lease that extends through February 2115. The properties held by the MAP Venture are encumbered by a mortgage on the MAP Venture's leasehold interest in the buildings that is nonrecourse to the Company and the assignment of the related rents and leases. The mortgage loan had an original maturity date of August 1, 2023. The lender provided the MAP Venture with three successive two-month extensions that matured on February 27, 2024. At March 31, 2024, the mortgage balance was $179.1 million. The Company and its partners are in active discussions, including with the mortgage lender, as to a potential extension of the loan or other restructuring of the venture. At present, there can be no assurance as to the outcome of these discussions. At March 31, 2024, the Company's negative investment balance was $52.2 million. The Company has no obligation to fund additional equity to the MAP Venture.
Mid-Atlantic Office JV
On December 21, 2020, the Company contributed a portfolio of 12 properties containing an aggregate of 1,128,645 net rentable square feet, nine of which are located in the Pennsylvania Suburbs segment and three located in the Company's former Metropolitan Washington, D.C. segment, to the Mid-Atlantic Office JV, for a gross sales price of $192.9 million. Upon consummation of the transaction, the Company owned approximately 40% of the equity interest in the venture. On the closing date, Mid-Atlantic Office JV obtained $147.4 million of third-party debt financing secured by the 12 properties within the venture, with an initial advance of $120.8 million. The loan bears interest at SOFR + 3.25% per annum and matured on January 9, 2024. The Company and its partners are in active discussions, including with the mortgage lender, as to a potential extension of the loan or other restructuring of the venture. At present, there can be no assurance as to the outcome of these discussions.
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As of March 31, 2024, the Company's investment in the Mid-Atlantic Office JV was zero, and the Company has discontinued applying the equity method of accounting on these assets as the Company has not guaranteed the venture's obligations or otherwise committed to providing financial support.
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 net rentable square feet, located in the Company's former Metropolitan Washington, D.C. segment. The Company and its partner own 15% and 85% equity interests in the Herndon Innovation Center, respectively. The properties held by Herndon Innovation Center are encumbered by a $233.4 million secured mortgage loan that matured on March 29, 2024 and is nonrecourse to the Company. The Company and its partners are in active discussions, including with the mortgage lender, as to a potential extension of the loan or other restructuring of the venture. At present, there can be no assurance as to the outcome of these discussions. As of March 31, 2024, the Company's investment in the Herndon Innovation Center was zero, and the Company has discontinued applying the equity method of accounting on these assets as the Company has not guaranteed the venture's obligations or otherwise committed to providing financial support.
Cira Square
On March 17, 2022, the Company formed a joint venture, Cira Square REIT, LLC (“Cira Square Venture”), for the purpose of acquiring Cira Square, an office property located at 2970 Market Street in Philadelphia, Pennsylvania containing 862,692 net rentable square feet for a gross purchase price of $383.0 million. The Company owns a 20% equity interest in Cira Square Venture and provided an initial capital contribution of $28.6 million on the closing date.
On the closing date, Cira Square Venture obtained $257.7 million of third-party debt financing secured by the property which is nonrecourse to the Company. The loan bears interest at 3.50% over one-month term SOFR per annum, and matured on April 1, 2024. On April 1, 2024, the venture's loan received an extension to July 1, 2024. The Company and its partners are in active discussions, including with the mortgage lender, as to a potential extension of the loan or other restructuring of the venture. At present, there can be no assurance as to the outcome of these discussions. At March 31, 2024, the Company's investment balance was $25.1 million.
5. LEASES
Lessor Accounting
The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three months ended March 31, 2024 and 2023 (in thousands):
Three Months Ended March 31,
Lease Revenue20242023
Fixed contractual payments$92,213 $91,682 
Variable lease payments24,198 26,515 
Total$116,411 $118,197 
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6. INTANGIBLE ASSETS AND LIABILITIES
As of March 31, 2024 and December 31, 2023, the Company’s intangible assets/liabilities were comprised of the following (in thousands):
March 31, 2024
Total CostAccumulated AmortizationIntangible Assets, net
Intangible assets, net:
In-place lease value$18,716 $(11,687)$7,029 
Tenant relationship value110 (53)57 
Above market leases acquired75 (49)26 
Total intangible assets, net$18,901 $(11,789)$7,112 
Total CostAccumulated AmortizationIntangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired$17,179 $(9,157)$8,022 
December 31, 2023
Total CostAccumulated AmortizationIntangible Assets, net
Intangible assets, net:
In-place lease value$24,281 $(16,673)$7,608 
Tenant relationship value110 (52)58 
Above market leases acquired75 (47)28 
Total intangible assets, net$24,466 $(16,772)$7,694 
Total CostAccumulated AmortizationIntangible Liabilities, net
Intangible liabilities, net:
Below market leases acquired$17,588 $(9,318)$8,270 
As of March 31, 2024, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands):
AssetsLiabilities