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Brandywine Realty Trust Announces Fourth Quarter, Full Year 2019 Results and Maintains 2020 Guidance

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PHILADELPHIA, Jan. 29, 2020 (GLOBE NEWSWIRE) -- Brandywine Realty Trust (BDN) today reported its financial and operating results for the three and twelve-month periods ended December 31, 2019.

Management Comments

“We completed 2019 accomplishing many of our key business plan objectives,” stated Jerry Sweeney, President and Chief Executive Officer of Brandywine Realty Trust. “Our markets continue to improve, which allowed us to achieve our 2019 speculative revenue target and generate strong rental rate growth throughout the year. Turning to 2020, we have already achieved 73% of our speculative revenue target and our 2020 business plan anticipates continued strong rental rate growth throughout our portfolio. In addition to strong market fundamentals, we continue to look for development opportunities and have two planned starts for 2020 that will accelerate our growth over the next several years. Based on the fourth quarter activity and our outlook for 2020, we are maintaining our current FFO guidance range of $1.41 to $1.51.”

Fourth Quarter 2019 Highlights

Financial Results

  • Net income allocated to common shareholders; $16.7 million, or $0.09 per diluted share.

  • Funds from Operations (FFO); $67.0 million, or $0.38 per diluted share.

Fourth Quarter Portfolio Results

  • Core Portfolio: 93.0% occupied and 95.5% leased.

  • New and renewal leases signed: 567,000 square feet.

  • Tenant Retention Ratio: 41% in fourth quarter and 66% for 2019.

  • Rental Rate Mark-to-Market: 10.0% on a GAAP basis and 3.1% on a cash basis.

Transaction Activity

Dispositions

  • On October 29, 2019, the PJP Ventures, three real estate ventures, in which we own a 25%-30% interest, each sold their sole operating office properties totaling 204,000 square feet in Charlottesville, VA at a gross sales price of $51.0 million. We received net cash proceeds of $9.1 million after closing costs and related debt payoffs. Our share of the gain on the real estate venture transaction and loss on the early extinguishment of debt were $8.0 million and $0.3 million, respectively.

Finance Activity

  • As previously announced, on October 3, 2019, we priced a $200.0 million underwritten public offering consisting of $100.0 million of our 4.100% guaranteed notes due 2024 (the “2024 Notes”) and $100.0 million of our 4.550% guaranteed notes due 2029 (the “2029 Notes” and, together with the 2024 Notes, the “Notes”).

    The net proceeds of the offering, after deducting underwriting discounts and estimated transaction expenses related to this offering and excluding accrued interest paid by the purchasers of the 2024 Notes and the 2029 Notes, were approximately $214.3 million. We used the net proceeds of the offering to reduce outstanding borrowings under our unsecured revolving credit facility and general corporate purposes.

  • We have no outstanding balance on our $600.0 million unsecured revolving credit facility as of December 31, 2019.

  • We have $90.5 million of cash and cash equivalents as of December 31, 2019.

Results for the Three and Twelve-Month Periods Ended December 31, 2019

Net income allocated to common shares totaled $16.7 million, or $0.09 per diluted share, in the fourth quarter of 2019 compared to net income of $120.8 million, or $0.67 per diluted share, in the fourth quarter of 2018. Our fourth quarter 2018 results include net gains on the sale of real estate totaling $107.9 million, or $0.60 per diluted share, a gain on promoted interest totaling $28.3 million, or $0.16 per diluted share, and provisions for impairment on real estate totaling ($14.8) million, or ($0.08) per diluted share.

FFO available to common shares and units in the fourth quarter of 2019 totaled $67.0 million, or $0.38 per diluted share, versus $64.2 million, or $0.36 per diluted share, in the fourth quarter of 2018. Our fourth quarter 2019 FFO payout ratio ($0.19 common share distribution / $0.38 FFO per diluted share) was 50.0%.

Net income allocated to common shares totaled $33.9 million, or $0.19 per diluted share, for twelve months of 2019 compared to net income of $134.1 million, or $0.75 per diluted share, in the twelve months of 2018. Our 2018 results include net gains on the sale of real estate totaling $145.2 million, or $0.81 per diluted share, and a gain on promoted interest totaling $28.3 million, or $0.16 per share, and provisions for impairment on real estate totaling ($71.7) million, or ($0.40) per diluted share.

Our FFO available to common shares and units for the twelve months ended 2019 totaled $253.3 million, or $1.43 per diluted share, compared to our FFO available to common shares and units for the twelve months of 2018, which totaled $247.6 million, or $1.37 per diluted share. Our 2019 FFO payout ratio ($0.76 common share distribution / $1.43 FFO per diluted share) was 53.1%.

Operating and Leasing Activity

In the fourth quarter of 2019, our Net Operating Income (NOI) excluding termination revenues, write-off of prior straight-line rent receivables and other income items increased 1.9% on a GAAP basis and increased 0.6% on a cash basis for our 74 same store properties, which were 93.0% and 93.3% occupied on December 31, 2019 and 2018, respectively.

We leased approximately 567,000 square feet and commenced occupancy on 315,000 square feet during the fourth quarter of 2019. The fourth quarter occupancy activity includes 104,000 square feet of renewals, 159,000 square feet of new leases and 52,000 square feet of tenant expansions. We have an additional 410,000 square feet of executed new leasing scheduled to commence subsequent to December 31, 2019.

We experienced a 41% tenant retention ratio in our core portfolio with net negative absorption of (71,000) square feet during the fourth quarter of 2019. Fourth quarter rental rate growth increased 10.0% as our renewal rental rates increased 10.2% and our new lease/expansion rental rates increased 9.6%, all on a GAAP basis.

At December 31, 2019, our core portfolio of 90 properties comprising 16.1 million square feet was 93.0% occupied and we are now 95.5% leased (reflecting new leases commencing after December 31, 2019).

Distributions

On December 11, 2019, our Board of Trustees declared a quarterly dividend distribution of $0.19 per common share that was paid on January 22, 2020 to shareholders of record as of January 8, 2020.

2020 Earnings and FFO Guidance

Based on current plans and assumptions and subject to the risks and uncertainties more fully described in our Securities and Exchange Commission filings, we are revising our 2020 net income guidance from $0.24 to $0.34 per diluted share to $0.26 to $0.36 per diluted share, and our 2020 FFO guidance of $1.41 - $1.51 per diluted share remains unchanged. This guidance is provided for informational purposes and is subject to change. The following is a reconciliation of the calculation of 2020 FFO and earnings per diluted share:

Guidance for 2020

Range

Earnings per diluted share allocated to common shareholders

$0.26

to

$0.36

Plus: real estate depreciation, amortization

1.15

1.15

FFO per diluted share

$ 1.41

to

$ 1.51

Our 2020 FFO key assumptions include:

  • Core Occupancy improving to a range of 94-95% by year-end 2020 and 95-96% leased;

  • 17-19% GAAP increase in overall lease rates;

  • 8-10% cash increase in overall lease rates;

  • 2-4% increase in 2020 same store GAAP NOI;

  • 0-2% increase in 2020 same store cash NOI

    • Excluding 1676 International Drive, 2.5% to 4.5% increase in cash NOI;

  • Speculative Revenue Target: $31.0 million, 73% achieved;

  • Acquisition Activity: $20.0 million (250 King of Prussia Road, Radnor, PA)

  • Disposition Activity: none;

  • Two development starts; and

  • Annual earnings and FFO per diluted share based on 179.0 million fully diluted weighted average common shares.

About Brandywine Realty Trust

Brandywine Realty Trust (BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia, Austin and Washington, D.C. markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 173 properties and 24.3 million square feet as of December 31, 2019, which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together. For more information, please visit www.brandywinerealty.com.

Conference Call and Audio Webcast

We will release our fourth quarter earnings after the market close on Wednesday, January 29, 2020, and will hold our fourth quarter conference call on Thursday, January 30, 2020 at 9:00 a.m. Eastern Time. The conference call can be accessed by dialing 1-833-818-6810 and providing conference ID: 9186939. Beginning two hours after the conference call, a taped replay of the call can be accessed through Friday, February 14, 2020, by calling 1-855-859-2056 and entering access code 9186939. The conference call can also be accessed via a webcast on our website at www.brandywinerealty.com.

Looking Ahead – First Quarter 2020 Conference Call

We anticipate we will release our first quarter 2020 earnings on Wednesday, April 22, 2020, after the market close and will host our first quarter 2020 conference call on Thursday, April 23, 2020 at 9:00 a.m. Eastern Time. We expect to issue a press release in advance of these events to reconfirm the dates and times and provide all related information.

Forward-Looking Statements

Estimates of future earnings per share, FFO per share, common share dividend distributions and certain other statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our and our affiliates’ actual results, performance, achievements or transactions to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others: our ability to lease vacant space and to renew or relet space under expiring leases at expected levels; competition with other real estate companies for tenants; the potential loss or bankruptcy of major tenants; interest rate levels; the availability of debt, equity or other financing; risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; unanticipated operating and capital costs; our ability to obtain adequate insurance, including coverage for terrorist acts; dependence upon certain geographic markets; and general and local economic and real estate conditions, including the extent and duration of adverse changes that affect the industries in which our tenants operate. The declaration and payment of future dividends (both timing and amount) is subject to the determination of our Board of Trustees, in its sole discretion, after considering various factors, including the Company's financial condition, historical and forecast operating results, and available cash flow, as well as any applicable laws and contractual covenants and any other relevant factors. The Company's practice regarding payment of dividends may be modified at any time and from time to time. Additional information on factors which could impact us and the forward-looking statements contained herein are included in our filings with the Securities and Exchange Commission, including our Form 10-K for the year ended December 31, 2018. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events except as required by law.

Non-GAAP Supplemental Financial Measures

We compute our financial results in accordance with generally accepted accounting principles (GAAP). Although FFO and NOI are non-GAAP financial measures, we believe that FFO and NOI calculations are helpful to shareholders and potential investors and are widely recognized measures of real estate investment trust performance. At the end of this press release, we have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measure.

Funds from Operations (FFO)

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts (NAREIT), which may not be comparable to FFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, or that interpret the NAREIT definition differently than us. NAREIT defines FFO as net income (loss) before non-controlling interests and excluding gains (losses) on sales of depreciable operating property, impairment losses on depreciable consolidated real estate, impairment losses on investments in unconsolidated real estate ventures and extraordinary items (computed in accordance with GAAP); plus real estate related depreciation and amortization (excluding amortization of deferred financing costs), and after similar adjustments for unconsolidated joint ventures. Net income, the GAAP measure that we believe to be most directly comparable to FFO, includes depreciation and amortization expenses, gains or losses on property sales, extraordinary items and non-controlling interests. To facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (determined in accordance with GAAP) as presented in the financial statements included elsewhere in this release. FFO does not represent cash flow from operating activities (determined in accordance with GAAP) and should not be considered to be an alternative to net income (loss) (determined in accordance with GAAP) as an indication of our financial performance or to be an alternative to cash flow from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions to shareholders.

Net Operating Income (NOI)

NOI is a financial measure equal to net income available to common shareholders, the most directly comparable GAAP financial measure, plus corporate general and administrative expense, depreciation and amortization, interest expense, non-controlling interest in the Operating Partnership and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, gains on early extinguishment of debt, income from discontinued operations, income from unconsolidated joint ventures and non-controlling interest in property partnerships. In some cases we also present NOI on a cash basis, which is NOI after eliminating the effects of straight-lining of rent and deferred market intangible amortization. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income as an indication of our performance or to cash flows as a measure of the Company's liquidity or its ability to make distributions. NOI is a useful measure for evaluating the operating performance of our properties, as it excludes certain components from net income available to common shareholders in order to provide results that are more closely related to a property's results of operations. NOI is used internally to evaluate the performance of our operating segments and to make decisions about resource allocations. We concluded that NOI provides useful information to investors regarding our financial condition and results of operations, as it reflects only the income and expense items incurred at the property level, as well as the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unlevered basis.

Core Portfolio

Our core portfolio is comprised of our wholly-owned properties, excluding any properties currently in development, re-development or re-entitlement.


BRANDYWINE REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)

December 31, 2019

December 31, 2018

ASSETS

Real estate investments:

Operating properties

$

4,006,459

$

3,958,712

Accumulated depreciation

(973,318

)

(885,407

)

Right of use asset - operating leases, net

21,656

Operating real estate investments, net

3,054,797

3,073,305

Construction-in-progress

177,243

150,263

Land held for development

96,124

86,401

Prepaid leasehold interests in land held for development, net

39,592

39,999

Total real estate investments, net

3,367,756

3,349,968

Assets held for sale, net

7,349

11,599

Cash and cash equivalents

90,499

22,842

Accounts receivable, net of allowance of $284 and $1,653 as of December 31, 2019 and December 31, 2018, respectively

16,363

16,394

Accrued rent receivable, net of allowance of $7,691 and $11,266 as of December 31, 2019 and December 31, 2018, respectively

174,144

165,243

Investment in Real Estate Ventures

120,294

169,100

Deferred costs, net

95,560

91,075

Intangible assets, net

84,851

131,348

Other assets

115,678

119,407

Total assets

$

4,072,494

$

4,076,976

LIABILITIES AND BENEFICIARIES' EQUITY

Mortgage notes payable, net

$

313,812

$

320,869

Unsecured credit facility

92,500

Unsecured term loan, net

248,561

248,042

Unsecured senior notes, net

1,582,045

1,366,635

Accounts payable and accrued expenses

109,872

125,696

Distributions payable

33,815

33,632

Deferred income, gains and rent

35,284

28,293

Acquired lease intangibles, net

22,263

31,783

Lease liability - operating leases

22,554

Other liabilities

15,985

18,498

Total liabilities

$

2,384,191

$

2,265,948

Brandywine Realty Trust's Equity:

Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 176,480,095 and 176,873,324 issued and outstanding as of December 31, 2019 and December 31, 2018, respectively

1,766

1,770

Additional paid-in-capital

3,192,158

3,200,312

Deferred compensation payable in common shares

16,216

14,021

Common shares in grantor trust, 1,105,542 and 977,120 issued and outstanding as of December 31, 2019 and December 31, 2018, respectively

(16,216

)

(14,021

)

Cumulative earnings

804,556

775,625

Accumulated other comprehensive income

(2,370

)

5,029

Cumulative distributions

(2,318,233

)

(2,183,909

)

Total Brandywine Realty Trust's equity

1,677,877

1,798,827

Noncontrolling interests

10,426

12,201

Total beneficiaries' equity

1,688,303

1,811,028

Total liabilities and beneficiaries' equity

$

4,072,494

$

4,076,976



BRANDYWINE REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share and per share data)

Three Months Ended December 31,

Year Ended December 31,

2019

2018

2019

2018

Revenue

Rents

$

139,552

$

132,723

$

554,665

$

515,044

Third party management fees, labor reimbursement and leasing

5,585

5,026

19,626

22,557

Other

1,902

1,454

6,126

6,744

Total revenue

147,039

139,203

580,417

544,345

Operating expenses

Property operating expenses

37,819

39,739

154,361

154,848

Real estate taxes

15,118

14,069

62,237

51,341

Third party management expenses

2,213

2,305

9,248

11,910

Depreciation and amortization

51,267

44,369

210,005

176,000

General and administrative expenses

6,939

5,593

32,156

27,802

Provision for impairment

14,842

71,707

Total operating expenses

113,356

120,917

468,007

493,608

Gain on sale of real estate

Net gain on disposition of real estate

2,967

356

2,932

Net gain on sale of undepreciated real estate

519

181

2,020

3,040

Total gain on sale of real estate

519

3,148

2,376

5,972

Operating income

34,202

21,434

114,786

56,709

Other income (expense):

Interest income

682

2,139

2,318

4,703

Interest expense

(20,239

)

(20,108

)

(81,512

)

(78,199

)

Interest expense - amortization of deferred financing costs

(742

)

(626

)

(2,768

)

(2,498

)

Equity in loss of Real Estate Ventures

(5,108

)

(14,049

)

(9,922

)

(15,231

)

Net gain on real estate venture transactions

8,045

104,970

11,639

142,233

Gain on promoted interest in unconsolidated real estate venture

28,283

28,283

Loss on early extinguishment of debt

(105

)

(105

)

Net income before income taxes

16,840

121,938

34,541

135,895

Income tax (provision) benefit

34

(265

)

(12

)

(423

)

Net income

16,874

121,673

34,529

135,472

Net income attributable to noncontrolling interests

(107

)

(792

)

(262

)

(954

)

Net income attributable to Brandywine Realty Trust

16,767

120,881

34,267

134,518

Nonforfeitable dividends allocated to unvested restricted shareholders

(91

)

(89

)

(396

)

(369

)

Net income attributable to Common Shareholders of Brandywine Realty Trust

$

16,676

$

120,792

$

33,871

$

134,149

PER SHARE DATA

Basic income per Common Share

$

0.09

$

0.68

$

0.19

$

0.75

Basic weighted average shares outstanding

176,330,079

178,530,890

176,132,941

178,519,748

Diluted income per Common Share

$

0.09

$

0.67

$

0.19

$

0.75

Diluted weighted average shares outstanding

176,836,658

179,300,321

176,686,813

179,641,492



BRANDYWINE REALTY TRUST
FUNDS FROM OPERATIONS
(unaudited, in thousands, except share and per share data)

Three Months Ended December 31,

Year Ended December 31,

2019

2018

2019

2018

Reconciliation of Net Income to Funds from Operations:

Net income attributable to common shareholders

$

16,676

$

120,792

$

33,871

$

134,149

Add (deduct):

Net income attributable to noncontrolling interests - LP units

96

783

193

899

Nonforfeitable dividends allocated to unvested restricted shareholders

91

89

396

369

Net gain on real estate venture transactions

(8,045

)

(104,970

)

(10,363

)

(142,233

)

Net gain on disposition of real estate

(2,967

)

(356

)

(2,932

)

Gain on promoted interest in unconsolidated real estate venture

(28,283

)

(28,283

)

Provision for impairment

14,842

71,707

Other than temporary impairment of equity method investment

4,076

4,076

Company's share of impairment of an unconsolidated real estate venture

2,832

10,416

2,832

10,416

Depreciation and amortization:

Real property

36,767

33,681

149,600

139,202

Leasing costs including acquired intangibles

14,015

10,283

58,493

35,215

Company’s share of unconsolidated real estate ventures

4,842

5,717

19,657

25,947

Partners’ share of consolidated real estate ventures

(58

)

(52

)

(226

)

(218

)

Funds from operations

$

67,216

$

64,407

$

254,097

$

248,314

Funds from operations allocable to unvested restricted shareholders

(183

)

(169

)

(750

)

(697

)

Funds from operations available to common share and unit holders (FFO)

$

67,033

$

64,238

$

253,347

$

247,617

FFO per share - fully diluted

$

0.38

$

0.36

$

1.43

$

1.37

Weighted-average shares/units outstanding - fully diluted

177,818,284

180,620,723

177,668,804

181,081,114

Distributions paid per common share

$

0.19

$

0.18

$

0.76

$

0.72

FFO payout ratio (distributions paid per common share/FFO per diluted share)

50.0

%

50.0

%

53.1

%

52.6

%



BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS – 4th QUARTER
(unaudited and in thousands)

Of the 95 properties owned by the Company as of December 31, 2019, a total of 74 properties ("Same Store Properties") containing an aggregate of 14.0 million net rentable square feet were owned for the entire three months ended December 31, 2019 and 2018. As of December 31, 2019, 16 properties were recently completed/acquired, and five properties were in development/redevelopment. Average occupancy for the Same Store Properties was 92.5% and 93.2% during the three-month periods ended December 31, 2019 and 2018, respectively. The following table sets forth revenue and expense information for the Same Store Properties:

Three Months Ended December 31,

2019

2018

Revenue

Rents

$

113,014

$

112,561

Other

701

418

Total revenue

113,715

112,979

Operating expenses

Property operating expenses

32,267

33,567

Real estate taxes

11,301

11,195

Net operating income

$

70,147

$

68,217

Net operating income - percentage change over prior year

2.8

%

Net operating income, excluding net termination fees & other

$

68,940

$

67,666

Net operating income, excluding net termination fees & other - percentage change over prior year

1.9

%

Net operating income

$

70,147

$

68,217

Straight line rents & other

(1,879

)

(1,285

)

Above/below market rent amortization

(335

)

(366

)

Amortization of tenant inducements

225

226

Non-cash ground rent

211

41

Cash - Net operating income

$

68,369

$

66,833

Cash - Net operating income - percentage change over prior year

2.3

%

Cash - Net operating income, excluding net termination fees & other

$

66,619

$

66,220

Cash - Net operating income, excluding net termination fees & other - percentage change over prior year

0.6

%

Three Months Ended December 31,

2019

2018

Net income:

$

16,874

$

121,673

Add/(deduct):

Interest income

(682

)

(2,139

)

Interest expense

20,239

20,108

Interest expense - amortization of deferred financing costs

742

626

Equity in loss of Real Estate Ventures

5,108

14,049

Net gain on real estate venture transactions

(8,045

)

(104,970

)

Net gain on disposition of real estate

(2,967

)

Net gain on sale of undepreciated real estate

(519

)

(181

)

Gain on promoted interest in unconsolidated real estate venture

(28,283

)

Loss on early extinguishment of debt

105

Depreciation and amortization

51,267

44,369

General & administrative expenses

6,939

5,593

Income tax provision (benefit)

(34

)

265

Provision for impairment

14,842

Consolidated net operating income

91,889

83,090

Less: Net operating income of non-same store properties and elimination of non-property specific operations

(21,742

)

(14,873

)

Same store net operating income

$

70,147

$

68,217


BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS – TWELVE MONTHS
(unaudited and in thousands)

Of the 95 properties owned by the Company as of December 31, 2019, a total of 73 properties ("Same Store Properties") containing an aggregate of 13.9 million net rentable square feet were owned for the entire twelve months ended December 31, 2019 and 2018. As of December 31, 2019, 17 properties were recently completed/acquired, and five properties were in development/redevelopment. Average occupancy for the Same Store Properties was 92.5% during 2019 and 92.9% during 2018. The following table sets forth revenue and expense information for the Same Store Properties:

Year Ended December 31,

2019

2018

Revenue

Rents

$

443,212

$

442,671

Other

1,824

1,648

Total revenue

445,036

444,319

Operating expenses

Property operating expenses

126,732

128,467

Real estate taxes

45,166

41,816

Net operating income

$

273,138

$

274,036

Net operating income - percentage change over prior year

(0.3

)%

Net operating income, excluding other items

$

269,357

$

270,625

Net operating income, excluding other items - percentage change over prior year

(0.5

)%

Net operating income

$

273,138

$

274,036

Straight line rents & other

(5,253

)

(10,050

)

Above/below market rent amortization

(1,406

)

(1,654

)

Amortization of tenant inducements

897

968

Non-cash ground rent

850

165

Cash - Net operating income

$

268,226

$

263,465

Cash - Net operating income - percentage change over prior year

1.8

%

Cash - Net operating income, excluding other items

$

263,216

$

259,329

Cash - Net operating income, excluding other items - percentage change over prior year

1.5

%

Year Ended December 31,

2019

2018

Net income:

$

34,529

$

135,472

Add/(deduct):

Interest income

(2,318

)

(4,703

)

Interest expense

81,512

78,199

Interest expense - amortization of deferred financing costs

2,768

2,498

Equity in loss of Real Estate Ventures

9,922

15,231

Net gain on real estate venture transactions

(11,639

)

(142,233

)

Net gain on disposition of real estate

(356

)

(2,932

)

Net gain on sale of undepreciated real estate

(2,020

)

(3,040

)

Gain on promoted interest in unconsolidated real estate venture

(28,283

)

Loss on early extinguishment of debt

105

Depreciation and amortization

210,005

176,000

General & administrative expenses

32,156

27,802

Income tax provision

12

423

Provision for impairment

71,707

Consolidated net operating income

354,571

326,246

Less: Net operating income of non-same store properties and elimination of non-property specific operations

(81,433

)

(52,210

)

Same store net operating income

$

273,138

$

274,036

Company / Investor Contact:
Tom Wirth
EVP & CFO
610-832-7434
tom.wirth@bdnreit.com