Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 18, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity Registrant Name | Brandywine Realty Trust | |
Entity Incorporation, State or Country Code | MD | |
Entity File Number | 001-9106 | |
Entity Tax Identification Number | 23-2413352 | |
Entity Address, Address Line One | 2929 Walnut Street | |
Entity Address, Address Line Two | Suite 1700 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19104 | |
City Area Code | 610 | |
Local Phone Number | 325-5600 | |
Title of 12(b) Security | Common Shares of Beneficial Interest | |
Trading Symbol | BDN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 176,194,918 | |
Entity Central Index Key | 0000790816 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Document Information [Line Items] | ||
Entity Registrant Name | Brandywine Operating Partnership, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 000-24407 | |
Entity Tax Identification Number | 23-2862640 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001060386 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real estate investments: | ||
Operating properties | $ 3,995,228 | $ 3,951,719 |
Accumulated depreciation | (944,994) | (885,407) |
Right of use asset - operating leases, net | 21,828 | 0 |
Operating real estate investments, net | 3,072,062 | 3,066,312 |
Construction-in-progress | 151,232 | 150,263 |
Land held for development | 92,189 | 86,401 |
Prepaid leasehold interests in land held for development, net | 39,694 | 39,999 |
Total real estate investments, net | 3,355,177 | 3,342,975 |
Assets held for sale, net | 7,349 | 11,599 |
Cash and cash equivalents | 29,925 | 22,842 |
Accounts receivable, net of allowance of $284 and $1,653 as of September 30, 2019 and December 31, 2018, respectively | 13,872 | 16,394 |
Accrued rent receivable, net of allowance of $11,009 and $11,266 as of September 30, 2019 and December 31, 2018, respectively | 168,960 | 165,243 |
Investment in Real Estate Ventures | 127,759 | 169,100 |
Deferred costs, net | 96,202 | 91,075 |
Intangible assets, net | 95,798 | 131,348 |
Other assets | 125,390 | 126,400 |
Total assets | 4,020,432 | 4,076,976 |
LIABILITIES AND EQUITY | ||
Mortgage notes payable, net | 315,603 | 320,869 |
Unsecured credit facility | 146,500 | 92,500 |
Unsecured term loan, net | 248,430 | 248,042 |
Unsecured senior notes, net | 1,367,722 | 1,366,635 |
Accounts payable and accrued expenses | 119,790 | 125,696 |
Distributions payable | 33,759 | 33,632 |
Deferred income, gains and rent | 22,707 | 28,293 |
Acquired lease intangibles, net | 24,050 | 31,783 |
Lease liability - operating leases | 22,503 | 0 |
Other liabilities | 16,931 | 18,498 |
Total liabilities | 2,317,995 | 2,265,948 |
Commitments and contingencies (See Note 13) | ||
Equity: | ||
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 176,194,918 and 176,873,324 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 1,763 | 1,770 |
Additional paid-in-capital | 3,189,350 | 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 September 30, 2019 and December 31, 2018, respectively | (16,216) | (14,021) |
Cumulative earnings | 787,789 | 775,625 |
Accumulated other comprehensive income | (3,550) | 5,029 |
Total Brandywine Operating Partnership, L.P.'s equity | 1,796,316 | |
Cumulative distributions | (2,284,610) | (2,183,909) |
Total Brandywine Realty Trust's equity | 1,690,742 | 1,798,827 |
Noncontrolling interests | 11,695 | 12,201 |
Total beneficiaries' equity | 1,702,437 | 1,811,028 |
Total partners' equity | 1,798,508 | |
Total liabilities and beneficiaries' equity | 4,020,432 | 4,076,976 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Real estate investments: | ||
Operating properties | 3,995,228 | 3,951,719 |
Accumulated depreciation | (944,994) | (885,407) |
Right of use asset - operating leases, net | 21,828 | 0 |
Operating real estate investments, net | 3,072,062 | 3,066,312 |
Construction-in-progress | 151,232 | 150,263 |
Land held for development | 92,189 | 86,401 |
Prepaid leasehold interests in land held for development, net | 39,694 | 39,999 |
Total real estate investments, net | 3,355,177 | 3,342,975 |
Assets held for sale, net | 7,349 | 11,599 |
Cash and cash equivalents | 29,925 | 22,842 |
Accounts receivable, net of allowance of $284 and $1,653 as of September 30, 2019 and December 31, 2018, respectively | 13,872 | 16,394 |
Accrued rent receivable, net of allowance of $11,009 and $11,266 as of September 30, 2019 and December 31, 2018, respectively | 168,960 | 165,243 |
Investment in Real Estate Ventures | 127,759 | 169,100 |
Deferred costs, net | 96,202 | 91,075 |
Intangible assets, net | 95,798 | 131,348 |
Other assets | 125,390 | 126,400 |
Total assets | 4,020,432 | 4,076,976 |
LIABILITIES AND EQUITY | ||
Mortgage notes payable, net | 315,603 | 320,869 |
Unsecured credit facility | 146,500 | 92,500 |
Unsecured term loan, net | 248,430 | 248,042 |
Unsecured senior notes, net | 1,367,722 | 1,366,635 |
Accounts payable and accrued expenses | 119,790 | 125,696 |
Distributions payable | 33,759 | 33,632 |
Deferred income, gains and rent | 22,707 | 28,293 |
Acquired lease intangibles, net | 24,050 | 31,783 |
Lease liability - operating leases | 22,503 | 0 |
Other liabilities | 16,931 | 18,498 |
Total liabilities | 2,317,995 | 2,265,948 |
Commitments and contingencies (See Note 13) | ||
Redeemable limited partnership units at redemption value; 981,626 and 982,871 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 14,728 | 12,520 |
Equity: | ||
General Partnership Capital; 176,194,918 and 176,873,324 units issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 1,689,334 | 1,791,591 |
Accumulated other comprehensive income | (3,902) | 4,725 |
Total Brandywine Operating Partnership, L.P.'s equity | 1,685,432 | 1,796,316 |
Noncontrolling interest - consolidated real estate ventures | 2,277 | 2,192 |
Total partners' equity | 1,687,709 | 1,798,508 |
Total liabilities and beneficiaries' equity | $ 4,020,432 | $ 4,076,976 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance | $ 284 | $ 1,653 |
Accrued rent receivable, allowance | $ 11,009 | $ 11,266 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued and outstanding (in shares) | 176,194,918 | 176,873,324 |
Common shares in grantor trust, issued and outstanding (in shares) | 1,105,542 | 977,120 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Accounts receivable, allowance | $ 284 | $ 1,653 |
Accrued rent receivable, allowance | $ 11,009 | $ 11,266 |
Redeemable limited partnership units issued and outstanding (in units) | 981,626 | 982,871 |
General partners' capital account, units issued and outstanding (in units) | 176,194,918 | 176,873,324 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | ||||
Rents | $ 139,228 | $ 128,635 | $ 415,113 | $ 382,321 |
Total revenue | 145,331 | 134,998 | 433,378 | 405,142 |
Operating expenses | ||||
Property operating expenses | 38,358 | 37,852 | 116,542 | 115,109 |
Real estate taxes | 15,247 | 12,433 | 47,119 | 37,272 |
Third party management expenses | 2,469 | 2,612 | 7,035 | 9,605 |
Depreciation and amortization | 55,627 | 44,141 | 158,738 | 131,631 |
General and administrative expenses | 6,974 | 5,963 | 25,217 | 22,209 |
Provision for impairment | 0 | 56,865 | 0 | 56,865 |
Total operating expenses | 118,675 | 159,866 | 354,651 | 372,691 |
Gain on sale of real estate | ||||
Net gain (loss) on disposition of real estate | 356 | 0 | 356 | (35) |
Net gain on sale of undepreciated real estate | 250 | 0 | 1,501 | 2,859 |
Total gain on sale of real estate | 606 | 0 | 1,857 | 2,824 |
Operating income (loss) | 27,262 | (24,868) | 80,584 | 35,275 |
Other income (expense): | ||||
Interest income | 558 | 1,220 | 1,636 | 2,564 |
Interest expense | (20,400) | (19,257) | (61,273) | (58,091) |
Interest expense - amortization of deferred financing costs | (694) | (618) | (2,026) | (1,872) |
Equity in (loss) income of Real Estate Ventures | (1,965) | 1 | (4,814) | (1,182) |
Net gain on real estate venture transactions | 2,059 | 0 | 3,594 | 37,263 |
Net income (loss) before income taxes | 6,820 | (43,522) | 17,701 | 13,957 |
Income tax provision | 0 | 0 | (46) | (158) |
Net income (loss) | 6,820 | (43,522) | 17,655 | 13,799 |
Net (income) loss attributable to noncontrolling interests | (48) | 342 | (155) | (162) |
Net income (loss) attributable to Brandywine Realty Trust | 6,772 | (43,180) | 17,500 | 13,637 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (93) | (80) | (305) | (280) |
Net income (loss) attributable to Common Shareholders of Brandywine Realty Trust | $ 6,679 | $ (43,260) | $ 17,195 | $ 13,357 |
Basic income per Common Share (in dollars per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 |
Diluted income per Common Share (in dollars per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 |
Basic weighted average shares outstanding (in shares) | 176,195,244 | 178,602,622 | 176,066,507 | 178,515,993 |
Diluted weighted average shares outstanding (in shares) | 176,750,600 | 178,602,622 | 176,617,726 | 179,752,544 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Rents | $ 139,228 | $ 128,635 | $ 415,113 | $ 382,321 |
Total revenue | 145,331 | 134,998 | 433,378 | 405,142 |
Operating expenses | ||||
Property operating expenses | 38,358 | 37,852 | 116,542 | 115,109 |
Real estate taxes | 15,247 | 12,433 | 47,119 | 37,272 |
Third party management expenses | 2,469 | 2,612 | 7,035 | 9,605 |
Depreciation and amortization | 55,627 | 44,141 | 158,738 | 131,631 |
General and administrative expenses | 6,974 | 5,963 | 25,217 | 22,209 |
Provision for impairment | 0 | 56,865 | 0 | 56,865 |
Total operating expenses | 118,675 | 159,866 | 354,651 | 372,691 |
Gain on sale of real estate | ||||
Net gain (loss) on disposition of real estate | 356 | 0 | 356 | (35) |
Net gain on sale of undepreciated real estate | 250 | 0 | 1,501 | 2,859 |
Total gain on sale of real estate | 606 | 0 | 1,857 | 2,824 |
Operating income (loss) | 27,262 | (24,868) | 80,584 | 35,275 |
Other income (expense): | ||||
Interest income | 558 | 1,220 | 1,636 | 2,564 |
Interest expense | (20,400) | (19,257) | (61,273) | (58,091) |
Interest expense - amortization of deferred financing costs | (694) | (618) | (2,026) | (1,872) |
Equity in (loss) income of Real Estate Ventures | (1,965) | 1 | (4,814) | (1,182) |
Net gain on real estate venture transactions | 2,059 | 0 | 3,594 | 37,263 |
Net income (loss) before income taxes | 6,820 | (43,522) | 17,701 | 13,957 |
Income tax provision | 0 | 0 | (46) | (158) |
Net income (loss) | 6,820 | (43,522) | 17,655 | 13,799 |
Net income attributable to noncontrolling interests - consolidated real estate ventures | (11) | (20) | (58) | (46) |
Net income attributable to Brandywine Operating Partnership | 6,809 | (43,542) | 17,597 | 13,753 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (93) | (80) | (305) | (280) |
Net income (loss) attributable to Common Shareholders of Brandywine Realty Trust | $ 6,716 | $ (43,622) | $ 17,292 | $ 13,473 |
Basic income per Common Share (in dollars per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 |
Diluted income per Common Share (in dollars per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 |
Basic weighted average shares outstanding (in shares) | 177,176,870 | 180,082,421 | 177,048,621 | 179,995,792 |
Diluted weighted average shares outstanding (in shares) | 177,732,226 | 180,082,421 | 177,599,840 | 181,232,343 |
Third party management fees, labor reimbursement and leasing | ||||
Revenue | ||||
Service and other revenue | $ 4,938 | $ 4,944 | $ 14,041 | $ 17,531 |
Third party management fees, labor reimbursement and leasing | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Service and other revenue | 4,938 | 4,944 | 14,041 | 17,531 |
Other | ||||
Revenue | ||||
Service and other revenue | 1,165 | 1,419 | 4,224 | 5,290 |
Other | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Service and other revenue | $ 1,165 | $ 1,419 | $ 4,224 | $ 5,290 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Net income (loss) | $ 6,820 | $ (43,522) | $ 17,655 | $ 13,799 | |
Comprehensive (loss) income: | |||||
Unrealized (loss) gain on derivative financial instruments | (1,586) | 734 | (9,209) | 7,008 | |
Amortization of interest rate contracts | [1] | 188 | 293 | 582 | 898 |
Comprehensive (loss) income: | (1,398) | 1,027 | (8,627) | 7,906 | |
Comprehensive income (loss) | 5,422 | (42,495) | 9,028 | 21,705 | |
Comprehensive income attributable to noncontrolling interest | (40) | 333 | (107) | (228) | |
Comprehensive income (loss) attributable to Brandywine Realty Trust | 5,382 | (42,162) | 8,921 | 21,477 | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||||
Net income (loss) | 6,820 | (43,522) | 17,655 | 13,799 | |
Comprehensive (loss) income: | |||||
Unrealized (loss) gain on derivative financial instruments | (1,586) | 734 | (9,209) | 7,008 | |
Amortization of interest rate contracts | [1] | 188 | 293 | 582 | 898 |
Comprehensive (loss) income: | (1,398) | 1,027 | (8,627) | 7,906 | |
Comprehensive income (loss) | 5,422 | (42,495) | 9,028 | 21,705 | |
Comprehensive income attributable to noncontrolling interest | (11) | (20) | (58) | (46) | |
Comprehensive income (loss) attributable to Brandywine Realty Trust | $ 5,411 | $ (42,515) | $ 8,970 | $ 21,659 | |
[1] | Amounts reclassified from comprehensive income to interest expense within the Consolidated Statements of Operations. |
Consolidated Statements of Bene
Consolidated Statements of Beneficiaries' Equity - USD ($) | Total | Common Stock | Deferred Compensation Payable in Common Shares | Additional Paid-in Capital | Common Shares in Grantor Trust | Cumulative Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Distributions | Noncontrolling Interests |
Beginning balance at Dec. 31, 2017 | $ 1,826,870,000 | $ 1,784,000 | $ 12,445,000 | $ 3,218,077,000 | $ (12,445,000) | $ 641,093,000 | $ 2,399,000 | $ (2,053,741,000) | $ 17,258,000 |
Beginning balance (in shares) at Dec. 31, 2017 | 178,285,236 | 894,736 | |||||||
Net income (loss) | 44,445,000 | 44,070,000 | 375,000 | ||||||
Other comprehensive income (loss) | 5,008,000 | 4,966,000 | 42,000 | ||||||
Issuance of Common Shares of Beneficial Interest | 416,000 | 416,000 | |||||||
Issuance of Common Shares of Beneficial Interest (in shares) | 23,311 | ||||||||
Issuance of partnership interest in consolidated real estate ventures | 15,000 | 15,000 | |||||||
Distributions from consolidated real estate ventures | (54,000) | (54,000) | |||||||
Share-based compensation activity | 3,076,000 | $ 1,000 | 3,072,000 | 3,000 | |||||
Share-based compensation activity (in shares) | 68,425 | ||||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ 1,061,000 | (1,061,000) | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 66,830 | 53,856 | |||||||
Share Choice Plan issuance (in shares) | (1,285) | ||||||||
Reallocation of Noncontrolling interest | 0 | (5,000) | 5,000 | ||||||
Distributions declared | (32,525,000) | (32,259,000) | (266,000) | ||||||
Ending balance at Mar. 31, 2018 | 1,847,251,000 | $ 1,785,000 | $ 13,506,000 | 3,221,560,000 | (13,506,000) | 685,166,000 | 7,365,000 | (2,086,000,000) | 17,375,000 |
Ending balance (in shares) at Mar. 31, 2018 | 178,442,517 | 948,592 | |||||||
Beginning balance at Dec. 31, 2017 | 1,826,870,000 | $ 1,784,000 | $ 12,445,000 | 3,218,077,000 | (12,445,000) | 641,093,000 | 2,399,000 | (2,053,741,000) | 17,258,000 |
Beginning balance (in shares) at Dec. 31, 2017 | 178,285,236 | 894,736 | |||||||
Net income (loss) | 13,799,000 | ||||||||
Other comprehensive income (loss) | 7,906,000 | ||||||||
Ending balance at Sep. 30, 2018 | 1,756,294,000 | $ 1,787,000 | $ 14,021,000 | 3,223,318,000 | (14,021,000) | 654,744,000 | 10,239,000 | (2,150,463,000) | 16,669,000 |
Ending balance (in shares) at Sep. 30, 2018 | 178,602,602 | 977,120 | |||||||
Beginning balance at Mar. 31, 2018 | 1,847,251,000 | $ 1,785,000 | $ 13,506,000 | 3,221,560,000 | (13,506,000) | 685,166,000 | 7,365,000 | (2,086,000,000) | 17,375,000 |
Beginning balance (in shares) at Mar. 31, 2018 | 178,442,517 | 948,592 | |||||||
Net income (loss) | 12,876,000 | 12,747,000 | 129,000 | ||||||
Other comprehensive income (loss) | 1,871,000 | 1,856,000 | 15,000 | ||||||
Issuance of partnership interest in consolidated real estate ventures | (4,000) | (4,000) | |||||||
Share-based compensation activity | 1,139,000 | $ 1,000 | 1,135,000 | 3,000 | |||||
Share-based compensation activity (in shares) | 127,726 | ||||||||
Share Issuance from/(to) Deferred Compensation Plan | (111,000) | $ 1,000 | $ 530,000 | (112,000) | (530,000) | ||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 34,230 | 33,713 | |||||||
Reallocation of Noncontrolling interest | 0 | 2,000 | (2,000) | ||||||
Distributions declared | (32,497,000) | (32,230,000) | (267,000) | ||||||
Ending balance at Jun. 30, 2018 | 1,830,525,000 | $ 1,787,000 | $ 14,036,000 | 3,222,585,000 | (14,036,000) | 697,916,000 | 9,221,000 | (2,118,230,000) | 17,246,000 |
Ending balance (in shares) at Jun. 30, 2018 | 178,604,473 | 982,305 | |||||||
Net income (loss) | (43,522,000) | (43,180,000) | (342,000) | ||||||
Other comprehensive income (loss) | 1,027,000 | 1,018,000 | 9,000 | ||||||
Issuance of partnership interest in consolidated real estate ventures | 5,000 | 5,000 | |||||||
Share-based compensation activity | 758,000 | 750,000 | 8,000 | ||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ (15,000) | 15,000 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (1,871) | (5,185) | |||||||
Reallocation of Noncontrolling interest | 0 | (17,000) | 17,000 | ||||||
Distributions declared | (32,499,000) | (32,233,000) | (266,000) | ||||||
Ending balance at Sep. 30, 2018 | 1,756,294,000 | $ 1,787,000 | $ 14,021,000 | 3,223,318,000 | (14,021,000) | 654,744,000 | 10,239,000 | (2,150,463,000) | 16,669,000 |
Ending balance (in shares) at Sep. 30, 2018 | 178,602,602 | 977,120 | |||||||
Beginning balance at Dec. 31, 2018 | 1,811,028,000 | $ 1,770,000 | $ 14,021,000 | 3,200,312,000 | (14,021,000) | 775,625,000 | 5,029,000 | (2,183,909,000) | 12,201,000 |
Beginning balance (in shares) at Dec. 31, 2018 | 176,873,324 | 977,120 | |||||||
Net income (loss) | 4,583,000 | 4,523,000 | 60,000 | ||||||
Other comprehensive income (loss) | (2,483,000) | (2,469,000) | (14,000) | ||||||
Repurchase and retirement of Common Shares of Beneficial Interest | (17,281,000) | $ (13,000) | (17,268,000) | ||||||
Repurchase and retirement of Common Shares of Beneficial Interest (in shares) | (1,337,169) | ||||||||
Issuance of partnership interest in consolidated real estate ventures | 22,000 | 22,000 | |||||||
Share-based compensation activity | 3,677,000 | $ 4,000 | 3,673,000 | ||||||
Share-based compensation activity (in shares) | 465,883 | 41,342 | |||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ 619,000 | (619,000) | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (458) | (5,920) | |||||||
Reallocation of Noncontrolling interest | 0 | 57,000 | (57,000) | ||||||
Distributions declared | (33,747,000) | (33,560,000) | (187,000) | ||||||
Ending balance at Mar. 31, 2019 | 1,760,463,000 | $ 1,761,000 | $ 14,640,000 | 3,186,774,000 | (14,640,000) | 774,812,000 | 2,560,000 | (2,217,469,000) | 12,025,000 |
Ending balance (in shares) at Mar. 31, 2019 | 176,001,580 | 1,012,542 | |||||||
Beginning balance at Dec. 31, 2018 | 1,811,028,000 | $ 1,770,000 | $ 14,021,000 | 3,200,312,000 | (14,021,000) | 775,625,000 | 5,029,000 | (2,183,909,000) | 12,201,000 |
Beginning balance (in shares) at Dec. 31, 2018 | 176,873,324 | 977,120 | |||||||
Net income (loss) | 17,655,000 | ||||||||
Other comprehensive income (loss) | (8,627,000) | ||||||||
Repurchase and retirement of Common Shares of Beneficial Interest | $ (17,300,000) | ||||||||
Repurchase and retirement of Common Shares of Beneficial Interest (in shares) | (1,337,169) | ||||||||
Ending balance at Sep. 30, 2019 | $ 1,702,437,000 | $ 1,763,000 | $ 16,216,000 | 3,189,350,000 | (16,216,000) | 787,789,000 | (3,550,000) | (2,284,610,000) | 11,695,000 |
Ending balance (in shares) at Sep. 30, 2019 | 176,194,918 | 1,105,542 | |||||||
Beginning balance at Mar. 31, 2019 | 1,760,463,000 | $ 1,761,000 | $ 14,640,000 | 3,186,774,000 | (14,640,000) | 774,812,000 | 2,560,000 | (2,217,469,000) | 12,025,000 |
Beginning balance (in shares) at Mar. 31, 2019 | 176,001,580 | 1,012,542 | |||||||
Net income (loss) | 6,252,000 | 6,205,000 | 47,000 | ||||||
Other comprehensive income (loss) | (4,746,000) | (4,720,000) | (26,000) | ||||||
Issuance of partnership interest in consolidated real estate ventures | 3,000 | 3,000 | |||||||
Redemption of LP Units | 0 | 16,000 | (16,000) | ||||||
Redemption of LP Units (in shares) | 1,245 | ||||||||
Share-based compensation activity | 1,451,000 | $ 2,000 | 1,449,000 | ||||||
Share-based compensation activity (in shares) | 94,150 | ||||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ 1,599,000 | (1,599,000) | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 100,908 | 100,908 | |||||||
Distributions declared | (33,758,000) | (33,571,000) | (187,000) | ||||||
Ending balance at Jun. 30, 2019 | 1,729,665,000 | $ 1,763,000 | $ 16,239,000 | 3,188,239,000 | (16,239,000) | 781,017,000 | (2,160,000) | (2,251,040,000) | 11,846,000 |
Ending balance (in shares) at Jun. 30, 2019 | 176,197,883 | 1,113,450 | |||||||
Net income (loss) | 6,820,000 | 6,772,000 | 48,000 | ||||||
Other comprehensive income (loss) | (1,398,000) | (1,390,000) | (8,000) | ||||||
Repurchase and retirement of Common Shares of Beneficial Interest | 0 | ||||||||
Issuance of partnership interest in consolidated real estate ventures | 2,000 | 2,000 | |||||||
Share-based compensation activity | 1,105,000 | 1,105,000 | |||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ (23,000) | 23,000 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (2,965) | (7,908) | |||||||
Reallocation of Noncontrolling interest | 0 | 6,000 | (6,000) | ||||||
Distributions declared | (33,757,000) | (33,570,000) | (187,000) | ||||||
Ending balance at Sep. 30, 2019 | $ 1,702,437,000 | $ 1,763,000 | $ 16,216,000 | $ 3,189,350,000 | $ (16,216,000) | $ 787,789,000 | $ (3,550,000) | $ (2,284,610,000) | $ 11,695,000 |
Ending balance (in shares) at Sep. 30, 2019 | 176,194,918 | 1,105,542 |
Consolidated Statements of Be_2
Consolidated Statements of Beneficiaries' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.18 |
Consolidated Statements of Part
Consolidated Statements of Partners' Equity - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | General Partner Capital | BRANDYWINE OPERATING PARTNERSHIP, L.P. | BRANDYWINE OPERATING PARTNERSHIP, L.P.Accumulated Other Comprehensive Income (Loss) | BRANDYWINE OPERATING PARTNERSHIP, L.P.Noncontrolling Interests | BRANDYWINE OPERATING PARTNERSHIP, L.P.General Partner Capital |
Beginning Balance at Dec. 31, 2017 | $ 1,799,955 | $ 2,056 | $ 2,215 | $ 1,795,684 | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 178,285,236 | |||||||
Net income (loss) | $ 44,445 | $ 375 | 44,445 | 5 | $ 44,440 | |||
Other comprehensive income (loss) | 5,008 | $ 4,966 | 42 | 5,008 | 5,008 | |||
Share Issuance from/(to) Deferred Compensation Plan | 0 | 0 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 66,830 | |||||||
Issuance of LP Units | 416 | $ 416 | ||||||
Issuance of LP Units (in shares) | 23,311 | |||||||
Issuance of partnership interest in consolidated real estate ventures | 15 | 15 | 15 | 15 | ||||
Distributions from consolidated real estate ventures | (54) | (54) | (54) | (54) | ||||
Share Choice Plan issuance (in shares) | (1,285) | |||||||
Share-based compensation activity | 3,076 | 3,075 | $ 3,075 | |||||
Share-based compensation activity (in shares) | 68,425 | |||||||
Adjustment of redeemable partnership units to liquidation value at period end | 3,604 | $ 3,604 | ||||||
Distributions declared to general partnership unitholders | (32,259) | (32,259) | ||||||
Ending Balance at Mar. 31, 2018 | 1,824,205 | 7,064 | 2,181 | $ 1,814,960 | ||||
Ending balance (in shares) at Mar. 31, 2018 | 178,442,517 | |||||||
Beginning Balance at Dec. 31, 2017 | 1,799,955 | 2,056 | 2,215 | $ 1,795,684 | ||||
Beginning balance (in shares) at Dec. 31, 2017 | 178,285,236 | |||||||
Net income (loss) | 13,799 | 13,799 | ||||||
Other comprehensive income (loss) | 7,906 | 7,906 | ||||||
Ending Balance at Sep. 30, 2018 | 1,733,055 | 9,962 | 2,223 | $ 1,720,870 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 178,602,602 | |||||||
Beginning Balance at Mar. 31, 2018 | 1,824,205 | 7,064 | 2,181 | $ 1,814,960 | ||||
Beginning balance (in shares) at Mar. 31, 2018 | 178,442,517 | |||||||
Net income (loss) | 12,876 | 129 | 12,876 | 21 | $ 12,855 | |||
Other comprehensive income (loss) | 1,871 | 1,856 | 15 | 1,871 | 1,871 | |||
Share Issuance from/(to) Deferred Compensation Plan | (111) | (111) | $ (111) | |||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 34,230 | |||||||
Issuance of partnership interest in consolidated real estate ventures | (4) | (4) | (4) | (4) | ||||
Share-based compensation activity | 1,139 | 1,140 | $ 1,140 | |||||
Share-based compensation activity (in shares) | 127,726 | |||||||
Adjustment of redeemable partnership units to liquidation value at period end | (1,991) | $ (1,991) | ||||||
Distributions declared to general partnership unitholders | (32,230) | (32,230) | ||||||
Ending Balance at Jun. 30, 2018 | 1,805,756 | 8,935 | 2,198 | $ 1,794,623 | ||||
Ending balance (in shares) at Jun. 30, 2018 | 178,604,473 | |||||||
Net income (loss) | (43,522) | (342) | (43,522) | 20 | $ (43,542) | |||
Other comprehensive income (loss) | 1,027 | 1,018 | 9 | 1,027 | 1,027 | |||
Share Issuance from/(to) Deferred Compensation Plan | 0 | 0 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (1,871) | |||||||
Issuance of partnership interest in consolidated real estate ventures | 5 | 5 | 5 | 5 | ||||
Share-based compensation activity | 758 | 758 | $ 758 | |||||
Adjustment of redeemable partnership units to liquidation value at period end | 1,264 | 1,264 | ||||||
Distributions declared to general partnership unitholders | (32,233) | (32,233) | ||||||
Ending Balance at Sep. 30, 2018 | 1,733,055 | 9,962 | 2,223 | $ 1,720,870 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 178,602,602 | |||||||
Beginning Balance at Dec. 31, 2018 | 1,798,508 | $ 1,791,591 | 1,798,508 | 4,725 | 2,192 | $ 1,791,591 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 176,873,324 | |||||||
Net income (loss) | 4,583 | 60 | 4,583 | 34 | $ 4,549 | |||
Other comprehensive income (loss) | (2,483) | (2,469) | (14) | (2,483) | (2,483) | |||
Share Issuance from/(to) Deferred Compensation Plan | 0 | 0 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (458) | |||||||
Repurchase and retirement of LP units | (17,281) | $ (17,281) | ||||||
Repurchase and retirement of LP units (in shares) | (1,337,169) | |||||||
Issuance of partnership interest in consolidated real estate ventures | 22 | 22 | 22 | 22 | ||||
Share-based compensation activity | 3,677 | 3,677 | $ 3,677 | |||||
Share-based compensation activity (in shares) | 465,883 | |||||||
Adjustment of redeemable partnership units to liquidation value at period end | (3,088) | $ (3,088) | ||||||
Distributions declared to general partnership unitholders | (33,560) | (33,560) | ||||||
Ending Balance at Mar. 31, 2019 | 1,745,042 | 2,242 | 2,248 | $ 1,740,552 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 176,001,580 | |||||||
Beginning Balance at Dec. 31, 2018 | 1,798,508 | $ 1,791,591 | 1,798,508 | 4,725 | 2,192 | $ 1,791,591 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 176,873,324 | |||||||
Net income (loss) | 17,655 | 17,655 | ||||||
Other comprehensive income (loss) | (8,627) | (8,627) | ||||||
Ending Balance at Sep. 30, 2019 | 1,687,709 | (3,902) | 2,277 | $ 1,689,334 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 176,194,918 | |||||||
Beginning Balance at Mar. 31, 2019 | 1,745,042 | 2,242 | 2,248 | $ 1,740,552 | ||||
Beginning balance (in shares) at Mar. 31, 2019 | 176,001,580 | |||||||
Net income (loss) | 6,252 | 47 | 6,252 | 13 | $ 6,239 | |||
Other comprehensive income (loss) | (4,746) | (4,720) | (26) | (4,746) | (4,746) | |||
Share Issuance from/(to) Deferred Compensation Plan | 0 | 0 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 100,908 | |||||||
Repurchase and retirement of LP units | 0 | |||||||
Repurchase and retirement of LP units (in shares) | 1,245 | |||||||
Issuance of partnership interest in consolidated real estate ventures | 3 | 3 | 3 | 3 | ||||
Share-based compensation activity | 1,451 | 1,451 | $ 1,451 | |||||
Share-based compensation activity (in shares) | 94,150 | |||||||
Adjustment of redeemable partnership units to liquidation value at period end | 1,014 | $ 1,014 | ||||||
Distributions declared to general partnership unitholders | (33,571) | (33,571) | ||||||
Ending Balance at Jun. 30, 2019 | 1,715,445 | (2,504) | 2,264 | $ 1,715,685 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 176,197,883 | |||||||
Net income (loss) | 6,820 | 48 | 6,820 | 11 | $ 6,809 | |||
Other comprehensive income (loss) | (1,398) | $ (1,390) | (8) | (1,398) | (1,398) | |||
Share Issuance from/(to) Deferred Compensation Plan | 0 | 0 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (2,965) | |||||||
Issuance of partnership interest in consolidated real estate ventures | 2 | $ 2 | 2 | 2 | ||||
Share-based compensation activity | $ 1,105 | 1,105 | $ 1,105 | |||||
Adjustment of redeemable partnership units to liquidation value at period end | (695) | (695) | ||||||
Distributions declared to general partnership unitholders | (33,570) | (33,570) | ||||||
Ending Balance at Sep. 30, 2019 | $ 1,687,709 | $ (3,902) | $ 2,277 | $ 1,689,334 | ||||
Ending balance (in shares) at Sep. 30, 2019 | 176,194,918 |
Consolidated Statements of Pa_2
Consolidated Statements of Partners' Equity (Parenthetical) - BRANDYWINE OPERATING PARTNERSHIP, L.P. - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | |
Distributions to general partnership unitholders (USD per share) | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.19 |
General Partner Capital | ||||
Distributions to general partnership unitholders (USD per share) | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.19 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 17,655 | $ 13,799 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 158,738 | 131,631 |
Amortization of deferred financing costs | 2,026 | 1,872 |
Amortization of debt discount/(premium), net | 527 | 527 |
Amortization of stock compensation costs | 6,145 | 5,143 |
Straight-line rent income | (8,287) | (10,102) |
Amortization of acquired above (below) market leases, net | (7,236) | (2,313) |
Ground rent expense | 1,103 | 288 |
Provision for doubtful accounts | 611 | 1,238 |
Net gain on real estate venture transactions | (3,594) | (37,263) |
Net gain on sale of interests in real estate | (1,857) | (2,824) |
Provision for impairment | 0 | 56,865 |
Loss from Real Estate Ventures, net of distributions | 5,134 | 2,811 |
Income tax provision | 46 | 158 |
Changes in assets and liabilities: | ||
Accounts receivable | 2,086 | 4,165 |
Other assets | (13,089) | (9,831) |
Accounts payable and accrued expenses | 194 | 1,544 |
Deferred income, gains and rent | (3,640) | (3,461) |
Other liabilities | (1,312) | 290 |
Net cash provided by operating activities | 155,250 | 154,537 |
Cash flows from investing activities: | ||
Acquisition of properties | 0 | (40,240) |
Proceeds from the sale of properties | 41,546 | 16,771 |
Proceeds from real estate venture sales | 675 | 42,953 |
Issuance of mortgage note receivable | 0 | (44,430) |
Proceeds from repayment of mortgage notes receivable | 3,341 | 141 |
Capital expenditures for tenant improvements | (53,383) | (43,142) |
Capital expenditures for redevelopments | (33,905) | (31,312) |
Capital expenditures for developments | (55,002) | (70,297) |
Advances for the purchase of tenant assets, net of repayments | (178) | 739 |
Investment in unconsolidated Real Estate Ventures | (253) | (646) |
Deposits for real estate | (1,990) | (5,550) |
Capital distributions from Real Estate Ventures | 35,206 | 5,101 |
Leasing costs paid | (13,184) | (10,664) |
Net cash used in investing activities | (77,127) | (180,576) |
Cash flows from financing activities: | ||
Repayments of mortgage notes payable | (5,669) | (4,972) |
Proceeds from credit facility borrowings | 333,000 | 0 |
Repayments of credit facility borrowings | (279,000) | 0 |
Debt financing costs paid | 0 | (2,704) |
Proceeds from the exercise of stock options | 800 | 0 |
Proceeds from the issuance of common shares | 0 | 416 |
Shares used for employee taxes upon vesting of share awards | (1,554) | (1,494) |
Partner contributions to consolidated real estate venture | 25 | 15 |
Partner distributions from consolidated real estate venture | 0 | (54) |
Repurchase and retirement of common shares | (17,282) | 0 |
Distributions paid to shareholders | (100,573) | (96,626) |
Distributions to noncontrolling interest | (560) | (799) |
Net cash used in financing activities | (70,813) | (106,218) |
Increase (decrease) in cash and cash equivalents and restricted cash | 7,310 | (132,257) |
Cash and cash equivalents and restricted cash at beginning of year | 23,211 | 203,442 |
Cash and cash equivalents and restricted cash at end of period | 30,521 | 71,185 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 22,842 | 202,179 |
Restricted cash, beginning of period | 369 | 1,263 |
Cash and cash equivalents and restricted cash at beginning of year | 23,211 | 203,442 |
Cash and cash equivalents, end of period | 29,925 | 70,360 |
Restricted cash, end of period | 596 | 825 |
Cash and cash equivalents and restricted cash at end of period | 30,521 | 71,185 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the nine months ended September 30, 2019 and 2018 of $2,246 and $2,578, respectively | 56,455 | 52,888 |
Cash paid for income taxes | 1,169 | 405 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 33,759 | 32,492 |
Change in construction-in-progress related to non-cash disposition of land | 0 | 22,625 |
Change in deferred income, gains and rent to the non-cash disposition of land | 0 | (25,462) |
Change in investment in real estate ventures as a result of dispositions | 3,461 | (17,313) |
Change in operating real estate related to a non-cash acquisition of an operating property | 0 | (20,653) |
Change in intangible assets, net related to non-cash acquisition of an operating property | 0 | (3,144) |
Change in acquired lease intangibles, net related to non-cash acquisition of an operating property | 0 | 182 |
Change in investments in joint venture related to non-cash acquisition of property | 0 | (2,042) |
Change in mortgage notes payable related to acquisition of an operating property | 0 | 9,940 |
Change in capital expenditures financed through accounts payable at period end | (6,011) | 992 |
Change in capital expenditures financed through retention payable at period end | (3,356) | 2,352 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Cash flows from operating activities: | ||
Net income (loss) | 17,655 | 13,799 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 158,738 | 131,631 |
Amortization of deferred financing costs | 2,026 | 1,872 |
Amortization of debt discount/(premium), net | 527 | 527 |
Amortization of stock compensation costs | 6,145 | 5,143 |
Straight-line rent income | (8,287) | (10,102) |
Amortization of acquired above (below) market leases, net | (7,236) | (2,313) |
Ground rent expense | 1,103 | 288 |
Provision for doubtful accounts | 611 | 1,238 |
Net gain on real estate venture transactions | (3,594) | (37,263) |
Net gain on sale of interests in real estate | (1,857) | (2,824) |
Provision for impairment | 0 | 56,865 |
Loss from Real Estate Ventures, net of distributions | 5,134 | 2,811 |
Income tax provision | 46 | 158 |
Changes in assets and liabilities: | ||
Accounts receivable | 2,086 | 4,165 |
Other assets | (13,089) | (9,831) |
Accounts payable and accrued expenses | 194 | 1,544 |
Deferred income, gains and rent | (3,640) | (3,461) |
Other liabilities | (1,312) | 290 |
Net cash provided by operating activities | 155,250 | 154,537 |
Cash flows from investing activities: | ||
Acquisition of properties | 0 | (40,240) |
Proceeds from the sale of properties | 41,546 | 16,771 |
Proceeds from real estate venture sales | 675 | 42,953 |
Issuance of mortgage note receivable | 0 | (44,430) |
Proceeds from repayment of mortgage notes receivable | 3,341 | 141 |
Capital expenditures for tenant improvements | (53,383) | (43,142) |
Capital expenditures for redevelopments | (33,905) | (31,312) |
Capital expenditures for developments | (55,002) | (70,297) |
Advances for the purchase of tenant assets, net of repayments | (178) | 739 |
Investment in unconsolidated Real Estate Ventures | (253) | (646) |
Deposits for real estate | (1,990) | (5,550) |
Capital distributions from Real Estate Ventures | 35,206 | 5,101 |
Leasing costs paid | (13,184) | (10,664) |
Net cash used in investing activities | (77,127) | (180,576) |
Cash flows from financing activities: | ||
Repayments of mortgage notes payable | (5,669) | (4,972) |
Proceeds from credit facility borrowings | 333,000 | 0 |
Repayments of credit facility borrowings | (279,000) | 0 |
Debt financing costs paid | 0 | (2,704) |
Proceeds from the exercise of stock options | 800 | 0 |
Proceeds from the issuance of common shares | 0 | 416 |
Shares used for employee taxes upon vesting of share awards | (1,554) | (1,494) |
Partner contributions to consolidated real estate venture | 25 | 15 |
Partner distributions from consolidated real estate venture | 0 | (54) |
Repurchase and retirement of common shares | (17,282) | 0 |
Distributions paid to shareholders | (101,133) | (97,425) |
Net cash used in financing activities | (70,813) | (106,218) |
Increase (decrease) in cash and cash equivalents and restricted cash | 7,310 | (132,257) |
Cash and cash equivalents and restricted cash at beginning of year | 23,211 | 203,442 |
Cash and cash equivalents and restricted cash at end of period | 30,521 | 71,185 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 22,842 | 202,179 |
Restricted cash, beginning of period | 369 | 1,263 |
Cash and cash equivalents and restricted cash at beginning of year | 23,211 | 203,442 |
Cash and cash equivalents, end of period | 29,925 | 70,360 |
Restricted cash, end of period | 596 | 825 |
Cash and cash equivalents and restricted cash at end of period | 30,521 | 71,185 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the nine months ended September 30, 2019 and 2018 of $2,246 and $2,578, respectively | 56,455 | 52,888 |
Cash paid for income taxes | 1,169 | 405 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 33,759 | 32,492 |
Change in construction-in-progress related to non-cash disposition of land | 0 | 22,625 |
Change in deferred income, gains and rent to the non-cash disposition of land | 0 | (25,462) |
Change in investment in real estate ventures as a result of dispositions | 3,461 | (17,313) |
Change in operating real estate related to a non-cash acquisition of an operating property | 0 | (20,653) |
Change in intangible assets, net related to non-cash acquisition of an operating property | 0 | (3,144) |
Change in acquired lease intangibles, net related to non-cash acquisition of an operating property | 0 | 182 |
Change in investments in joint venture related to non-cash acquisition of property | 0 | (2,042) |
Change in mortgage notes payable related to acquisition of an operating property | 0 | 9,940 |
Change in capital expenditures financed through accounts payable at period end | (6,011) | 992 |
Change in capital expenditures financed through retention payable at period end | $ (3,356) | $ 2,352 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Capitalized interest | $ 1,465 | $ 1,577 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Capitalized interest | $ 1,465 | $ 1,577 |
Organization of the Parent Comp
Organization of the Parent Company and The Operating Partnership | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP | ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP The Parent Company is a self-administered and self-managed real estate investment trust (“REIT”) that provides leasing, property management, development, redevelopment, acquisition and other tenant-related services for a portfolio of office, retail, and mixed-use properties. The Parent Company owns its assets and conducts its operations through the Operating Partnership and subsidiaries of the Operating Partnership. The Parent Company is the sole general partner of the Operating Partnership and, as of September 30, 2019 , owned a 99.4% interest in the Operating Partnership. The Parent Company’s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol “BDN”. As of September 30, 2019 , the Company owned 95 properties that contained an aggregate of approximately 16.7 million net rentable square feet (collectively, the “Properties”). The Company’s core portfolio of operating properties excludes development properties, redevelopment properties, and properties held for sale (the “Core Properties”). The Properties were comprised of the following as of September 30, 2019 : Number of Properties Rentable Square Feet Office properties 87 15,509,004 Mixed-use properties 3 641,741 Retail property 1 17,884 Core Properties 91 16,168,629 Development property 1 204,108 Redevelopment properties 3 338,650 The Properties 95 16,711,387 In addition to the Properties, as of September 30, 2019 , the Company owned 234.7 acres of land held for development, of which 35.2 acres were held for sale. The Company also held leasehold interests in two land parcels totaling 1.8 acres, each acquired through prepaid 99 years ground leases, and held options to purchase approximately 55.5 additional acres of undeveloped land. As of September 30, 2019 , 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 14.2 million square feet, of which 0.2 million square feet relates to 35.2 acres held for sale. As of September 30, 2019 , the Company also owned economic interests in ten unconsolidated real estate ventures (collectively, the “Real Estate Ventures”) (see Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information). The Properties and the properties owned by the Real Estate Ventures are located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; and 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 September 30, 2019 , the management company subsidiaries were managing properties containing an aggregate of approximately 24.6 million net rentable square feet, of which approximately 16.7 million net rentable square feet related to Properties owned by the Company and approximately 7.9 million net rentable square feet related to properties owned by third parties and Real Estate Ventures. Unless otherwise indicated, all references in this Form 10-Q to square feet represent net rentable area. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 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 ("U.S. 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 September 30, 2019 , the results of its operations for the three and nine months ended September 30, 2019 and 2018 and its cash flows for the nine months ended September 30, 2019 and 2018 . 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 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019. The Company's Annual Report on Form 10-K for the year ended December 31, 2018 contains a discussion of our significant accounting policies under Note 2, "Summary of Significant Accounting Policies". Other than the adoption of ASU-2016-02, Leases (Topic 842), there have been no significant changes in our significant accounting policies since December 31, 2018 . The Company reclassified tenant reimbursements and termination fees from “Tenant reimbursements” and “Termination fees,” respectively, to “Rents” on the consolidated statements of operations as a result of the adoption of Topic 842. Prior periods have been revised to conform to current period presentation. Revision of Previously Issued Financial Statements The Company’s comparative 2018 results have been adjusted to correct for the effects of errors discovered during the second quarter of 2019 relating to the purchase price allocation and depreciable lives for two acquisitions made in a prior period. The Company has evaluated the impact of the errors to previously issued financial statements and concluded that the errors were immaterial to the previously issued financial statements; however, to correct the cumulative effect of the errors in 2019 would significantly impact the 2019 financial statements. Accordingly, the previously issued financial statements have been corrected. The corrections to the balance sheets include a reduction in cumulative earnings and operating properties and an increase to accumulated depreciation. The corrections to the prior period income statements result in an increase in depreciation and amortization and property operating expenses. In addition, the impact of an immaterial out of period depreciation adjustment, which was previously disclosed in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2019, has been reflected in the correct period. The following tables and paragraphs present line items of the previously issued financial statements that have been corrected as a result of the revision: Balance sheet impacts (in thousands) : December 31, 2018 Balance Sheet: As previously reported Adjustments As adjusted Assets (Parent Company and Operating Partnership) Operating properties 3,953,319 (1,600 ) 3,951,719 Accumulated depreciation (865,462 ) (19,945 ) (885,407 ) Operating real estate investments, net 3,087,857 (21,545 ) 3,066,312 Total assets 4,098,521 (21,545 ) 4,076,976 Equity (Parent Company) Additional Paid-in Capital 3,200,850 (538 ) 3,200,312 Cumulative Earnings 796,513 (20,888 ) 775,625 Total Brandywine Realty Trust's equity 1,820,253 (21,426 ) 1,798,827 Noncontrolling interests 12,320 (119 ) 12,201 Total beneficiaries' equity 1,832,573 (21,545 ) 1,811,028 Total liabilities and beneficiaries' equity 4,098,521 (21,545 ) 4,076,976 Equity (Operating Partnership) General Partnership Capital 1,813,136 (21,545 ) 1,791,591 Total Brandywine Operating Partnership, L.P.'s equity 1,817,861 (21,545 ) 1,796,316 Total partners' equity 1,820,053 (21,545 ) 1,798,508 Total liabilities and partners' equity 4,098,521 (21,545 ) 4,076,976 Statement of Beneficiaries’ / Partners’ Equity impacts (in thousands): Three and Nine Months Ended September 30, 2018 Brandywine Realty Trust As previously reported Adjustments As adjusted Statement of Beneficiaries' Equity: Additional paid-in capital, beginning of period 3,218,564 (487 ) 3,218,077 Cumulative earnings, beginning of period 660,174 (19,081 ) 641,093 Noncontrolling interest, beginning of period 17,420 (162 ) 17,258 Additional paid-in capital, March 31, 2018 3,222,047 (487 ) 3,221,560 Cumulative earnings, March 31, 2018 704,506 (19,340 ) 685,166 Noncontrolling interests, March 31, 2018 17,538 (163 ) 17,375 Additional paid-in capital, June 30, 2018 3,223,072 (487 ) 3,222,585 Cumulative earnings, June 30, 2018 717,515 (19,599 ) 697,916 Noncontrolling interests, June 30, 2018 17,410 (164 ) 17,246 Additional paid-in capital, September 30, 2018 3,223,817 (499 ) 3,223,318 Cumulative earnings, September 30, 2018 674,599 (19,855 ) 654,744 Noncontrolling interests, September 30, 2018 16,824 (155 ) 16,669 Brandywine Operating Partnership Statement of Partners' Equity: Partner Capital, beginning of period 1,815,411 (19,727 ) 1,795,684 Partner Capital, March 31, 2018 1,834,947 (19,987 ) 1,814,960 Partner Capital, June 30, 2018 1,814,870 (20,247 ) 1,794,623 Partner Capital, September 30, 2018 1,741,379 (20,509 ) 1,720,870 Statement of Operations impacts: Net income for the three and nine months ended September 30, 2018 has been reduced by $0.3 million and $0.8 million respectively, with a $0.01 decrease to basic and diluted income per common share and per common partnership unit for the nine months ended September 30, 2019. There was no change to any previously reported net income per share amount for the three months ended September 30, 2018 . There were no impacts to cash flows from operating activities in any period. Adoption of New Accounting Guidance In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), modifying the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for in the same manner as operating leases under ASC 840, Leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to previous guidance for sales-type leases, direct financing leases, and operating leases. The guidance supersedes previously issued guidance under ASC 840. The Company adopted Topic 842 effective January 1, 2019. In applying the modified retrospective transition method, the Company elected the package of practical expedients available for implementation, which allows for the following: • An entity need not reassess whether any expired or existing contracts are or contain leases; • An entity need not reassess the lease classification for any expired or existing leases; and • An entity need not reassess initial indirect costs for any existing leases. Furthermore, the Company elected the optional transition method to make January 1, 2019 the initial application date of the standard. This package of practical expedients allows entities to account for their existing leases for the remainder of their respective lease terms following the previous accounting guidance. The Company also elected to adopt the optional transition practical expedient provided in ASU 2018-01 to not evaluate under Topic 842 for existing or expired land easements prior to the application date to determine if they meet the definition of a lease. The Company also elected to adopt the practical expedient offered in ASU 2018-11 that allows lessors to not allocate the total consideration to lease and nonlease components, such as tenant reimbursements, based on their relative standalone selling prices as the timing and pattern of revenue recognition of the combined single lease component is the same and the leases are classified as operating leases. The Company elected to adopt ASU 2018-20, which allows lessors to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, lessors will account for those costs as if they are lessee costs. All collections from lessees of taxes within the scope of the election are excluded from the consideration of the contract and from variable payments not included in the consideration of the contract. Lessor accounting The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. As of September 30, 2019 , the Company does not have any leases classified as direct-financing or sales-type leases. The operating leases have various expiration dates . Lease payments on non-cancellable leases at September 30, 2019 are as follows (in thousands): Year Minimum Rent 2019 (three months remaining) $ 97,250 2020 386,991 2021 364,435 2022 324,296 2023 296,890 Thereafter 1,413,756 Total $ 2,883,618 Lease payments on non-cancellable leases at December 31, 2018 are as follows (in thousands): Year Minimum Rent 2019 $ 392,058 2020 372,619 2021 349,160 2022 304,445 2023 277,388 Thereafter 1,265,810 Total $ 2,961,480 Fixed lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based. In November 2018, the FASB issued ASU No. 2018-19, which clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis. The Company has evaluated all leases for collectability and is recognizing lease payments for certain leases on a cash basis because collectability of substantially all of the lease payments is not probable. As a result, the write off of the accrued rent receivable of $0.7 million was recorded by the Company upon adoption of Topic 842 as a cumulative effect of accounting change adjustment to equity through “Cumulative earnings” on the consolidated balance sheets. The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded the improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term. For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term. The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. The Company also contracts with third-party vendors and suppliers for goods and services to fulfill certain of the Company’s obligations to tenants. Tenant reimbursement s are billed in the period in which the related expenses are incurred. The table below sets forth the allocation of lease revenue recognized between fixed contractual payments and variable lease payments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Revenue 2019 2019 Fixed contractual payments $ 110,535 $ 327,252 Variable lease payments 28,693 87,861 Total $ 139,228 $ 415,113 Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract . Lessee Accounting The Company is the lessee under six long-term ground leases classified as operating leases. While adoption of the practical expedient allows the Company to not revisit the classification of existing leases, the Company measured the present value of the future lease payments for each ground lease agreement and recognized a right of use asset and lease liability in the aggregate amount of $22.4 million , each as of January 1, 2019 in accordance with Topic 842. The right of use assets and lease liabilities are presented as “Right of use asset – operating leases” and “Lease liability – operating leases”, respectively, on the consolidated balance sheet as of September 30, 2019 . The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilized a market-based approach to estimate the IBR for each individual lease. The base IBR was estimated utilizing observable mortgage and corporate bond rates, which were then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed. Topic 842 requires use of the most recent CPI adjustment when determining the present value of the lease payments for an indexed lease. As such, the 2018 CPI index was used to determine the right of use asset and corresponding lease liability as of January 1, 2019. Additional rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs. The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2019 2019 Fixed lease cost $ 525 $ 1,575 Variable lease cost 13 41 Total $ 538 $ 1,616 Weighted-average remaining lease term (years) 52.9 Weighted-average discount rate 6.3 % Marine Piers Sublease Interest Sale On March 15, 2017, the Company sold its sublease interest in the Piers at Penn’s Landing (the “Marine Piers”), which included leasehold improvements containing 181,900 net rentable square feet, and a marina, located in Philadelphia, Pennsylvania, for an aggregate sales price of $21.4 million . On the closing date, the buyer paid $12.0 million in cash and the Company received cash proceeds of $11.2 million , after closing costs and prorations. The $9.4 million balance of the purchase price was due on (a) January 31, 2020 , in the event that the tenant at the Marine Piers did not exercise an option it held to extend the term of the sublease or (b) January 15, 2024, in the event that the tenant did exercise the option to extend the term of the sublease. In accordance with ASU 2017-05, the Company determined that it was appropriate to recognize the sale of the sublease interest in the Marine Piers and to defer the amount of the remaining $9.4 million balance due under the purchase and sale agreement until collectability can be determined. During the first quarter of 2019, the tenant at the Marine Piers exercised its option to extend the term of its sublease. As a result, the $9.4 million balance of the purchase price is due on January 15, 2024, and the Company will recognize the additional gain on sale when the gain is realizable or realized. Recent Accounting Pronouncements |
Real Estate Investments
Real Estate Investments | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | REAL ESTATE INVESTMENTS As of September 30, 2019 and December 31, 2018 , the gross carrying value of the operating properties was as follows (in thousands): September 30, 2019 December 31, 2018 Land $ 489,744 $ 487,301 Building and improvements 3,049,606 3,048,889 Tenant improvements 455,878 415,529 Total $ 3,995,228 $ 3,951,719 Dispositions On September 11, 2019, the Company sold an office property in Vienna, Virginia known as 1900 Gallows Rd., which included 210,632 square feet of rentable space, for a total sales price of $36.4 million resulting in a loss on sale of $ 0.4 million after closing and other transaction related costs. During the three months ended September 30, 2019, the Company also received additional proceeds from a sale that closed in a prior year resulting in $0.7 million of additional gain on sale. The Company sold the following land parcel and recognized a gain on a property sold in a prior year during the nine months ended September 30, 2019 (dollars in thousands): Disposition Date Property/Portfolio Name Location Number of Parcels Acres Sales Price Net Proceeds on Sale Gain on Sale March 15, 2019 9 Presidential Boulevard Bala Cynwyd, PA 1 2.7 $ 5,325 $ 5,023 $ 751 January 8, 2015 Libertyview Cherry Hill, NJ — — — — 750 (a) Total Dispositions 1 2.7 $ 5,325 $ 5,023 $ 1,501 (a) As of January 2019, the Company expects to receive an additional $1.0 million of contingent consideration. The Company will recognize this consideration on a cash basis due to uncertainty of collectability. The $1.0 million consideration is payable to the Company in twelve equal installments, of which $0.8 million has been received during the nine months ended September 30, 2019 . Held for Sale As of September 30, 2019 , the Company determined that the sale of two parcels of land totaling 35.2 acres in the Other segment was probable and classified these properties as held for sale in accordance with applicable accounting standards for long-lived assets. As of September 30, 2019 , $7.3 million was reclassified from “Land held for development” to “Assets held for sale, net” on the consolidated balance sheets. As of September 30, 2019 |
Investment in Unconsolidated Re
Investment in Unconsolidated Real Estate Ventures | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES As of September 30, 2019 , the Company's aggregate investment balance in the Real Estate Ventures was $127.8 million . The Company formed or acquired interests in the Real Estate Ventures with unaffiliated third parties to develop or manage office, residential and/or mixed-use properties or to acquire land in anticipation of possible development of office, residential and/or mixed-use properties. As of September 30, 2019 , six real estate ventures owned properties that contained an aggregate of approximately 5.6 million net rentable square feet of office space; two real estate ventures owned 1.4 acres of land held for development; one real estate venture owned 1.3 acres of land in active development; and one real estate venture owned a residential tower that contained 321 apartment units. The Company accounts for its unconsolidated interests in the Real Estate Ventures using the equity method. The Company’s unconsolidated interests range from 15% to 70% and, in certain of the real estate ventures, are subject to specified priority allocations of distributable cash. The Company earned management fees from its Real Estate Ventures of $1.0 million and $3.2 million for the three and nine months ended September 30, 2019 , respectively, and $1.4 million and $4.0 million for the three and nine months ended September 30, 2018 , respectively. The Company earned leasing commission income from its Real Estate Ventures of $0.3 million and $0.8 million for the three and nine months ended September 30, 2019 , respectively, and $1.5 million and $4.4 million for the three and nine months ended September 30, 2018 , respectively. The Company had outstanding accounts receivable balances from its Real Estate Ventures of $0.8 million as of both September 30, 2019 and December 31, 2018 . The amounts reflected in the following tables (except for the Company’s share of equity and income) are based on the financial information of the individual Real Estate Ventures. The Company does not record operating losses of a real estate venture in excess of its investment balance unless the Company is liable for the obligations of the real estate venture or is otherwise obligated to provide financial support to the real estate venture. The following is a summary of the financial position of the Real Estate Ventures in which the Company held interests as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Net property $ 841,743 $ 835,983 Other assets (a) 351,364 159,499 Other liabilities (a) 289,952 85,681 Debt, net (b) 581,024 365,707 Equity (c) 322,131 544,094 (a) The increase is due to the recording of lease related assets and liabilities of $197.1 million and $206.4 million , respectively, for MAP Venture in connection with the adoption of Topic 842. (b) The increase is due to third-party debt financing received by Herndon Innovation Center Venture during the three months ended March 31, 2019. See “Herndon Innovation Center Metro Portfolio Venture” section below for further information. (c) This amount includes the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level. The following is a summary of results of operations of the Real Estate Ventures in which the Company held interests during the three and nine -month periods ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, 2019 DRA (G&I) Austin (a) Brandywine-AI Venture LLC MAP Venture Other Total Revenue $ — $ 1,360 $ 17,476 $ 13,890 $ 32,726 Operating expenses — (871 ) (11,981 ) (5,017 ) (17,869 ) Interest expense, net — (222 ) (2,436 ) (3,522 ) (6,180 ) Depreciation and amortization — (540 ) (6,247 ) (6,307 ) (13,094 ) Gain on early extinguishment of debt $ — $ 4,371 $ — $ — $ 4,371 Net income (loss) $ — $ 4,098 $ (3,188 ) $ (956 ) $ (46 ) Ownership interest % — % 50 % 50 % (b) (b) Company's share of net income (loss) $ — $ 2,049 $ (1,594 ) $ (2,400 ) $ (1,945 ) Basis adjustments and other — 31 (28 ) (23 ) (20 ) Equity in income (loss) of Real Estate Ventures $ — $ 2,080 $ (1,622 ) $ (2,423 ) $ (1,965 ) Three Months Ended September 30, 2018 DRA (G&I) Austin (a) Brandywine-AI Venture LLC MAP Venture Other Total Revenue $ 14,232 $ 5,962 $ 17,243 $ 4,580 $ 42,017 Operating expenses (6,428 ) (2,589 ) (10,219 ) (1,904 ) (21,140 ) Interest expense, net (2,549 ) (873 ) (2,894 ) (1,228 ) (7,544 ) Depreciation and amortization (4,896 ) (2,232 ) (4,654 ) (1,481 ) (13,263 ) Loss on early extinguishment of debt — — (334 ) — (334 ) Net income (loss) $ 359 $ 268 $ (858 ) $ (33 ) $ (264 ) Ownership interest % 50 % 50 % 50 % (b) (b) Company's share of net income (loss) $ 180 $ 134 $ (429 ) $ (121 ) $ (236 ) Basis adjustments and other 243 31 (15 ) (22 ) 237 Equity in income (loss) of Real Estate Ventures $ 423 $ 165 $ (444 ) $ 144 $ 1 Nine months ended September 30, 2019 DRA (G&I) Austin (a) Brandywine-AI Venture LLC evo at Cira Centre South (c) MAP Venture Other Total Revenue $ — $ 5,050 $ — $ 53,560 $ 42,538 $ 101,148 Operating expenses — (2,473 ) — (35,747 ) (15,736 ) (53,956 ) Interest expense, net — (698 ) — (7,504 ) (8,219 ) (16,421 ) Depreciation and amortization — (2,055 ) — (19,146 ) (19,078 ) (40,279 ) Loss on early extinguishment of debt $ — $ 4,371 $ — $ — $ — $ 4,371 Net income (loss) $ — $ 4,195 $ — $ (8,837 ) $ (495 ) $ (5,137 ) Ownership interest % — % 50 % — % 50 % (b) (b) Company's share of net income (loss) $ — $ 2,098 $ — $ (4,419 ) $ (2,444 ) $ (4,765 ) Basis adjustments and other — 101 — (69 ) (81 ) (49 ) Equity in income (loss) of Real Estate Ventures $ — $ 2,199 $ — $ (4,488 ) $ (2,525 ) $ (4,814 ) Nine Months Ended September 30, 2018 DRA (G&I) Austin (a) Brandywine-AI Venture LLC evo at Cira Centre South (c) MAP Venture Other Total Revenue $ 42,492 $ 17,768 $ 995 $ 50,976 $ 13,708 $ 125,939 Operating expenses (18,245 ) (8,010 ) (250 ) (30,347 ) (5,145 ) (61,997 ) Interest expense, net (7,070 ) (2,606 ) (388 ) (10,426 ) (3,132 ) (23,622 ) Depreciation and amortization (15,622 ) (6,915 ) (376 ) (14,096 ) (4,430 ) (41,439 ) Loss on early extinguishment of debt — — (718 ) (334 ) — (1,052 ) Net income (loss) $ 1,555 $ 237 $ (737 ) $ (4,227 ) $ 1,001 $ (2,171 ) Ownership interest % 50 % 50 % 50 % 50 % (b) (b) Company's share of net income (loss) $ 778 $ 119 $ (369 ) $ (2,114 ) $ 168 $ (1,418 ) Basis adjustments and other 378 33 11 (39 ) (147 ) 236 Equity in income (loss) of Real Estate Ventures $ 1,156 $ 152 $ (358 ) $ (2,153 ) $ 21 $ (1,182 ) (a) On December 11, 2018, the Company acquired from DRA Advisors, an unaffiliated third party, DRA’s 50% ownership interest in the G&I Austin Office LLC real estate venture. The DRA Austin Venture owned twelve office properties containing an aggregate 1,570,123 square feet, located in Austin, Texas. As a result of the acquisition, the Company acquired complete ownership of the Austin properties. (b) The Company’s unconsolidated ownership interests ranged from 15% to 70% during the three and nine months ended September 30, 2019 and 25% to 70% during the three and nine months ended September 30, 2018 , subject to specified priority allocations of distributable cash in certain of the Real Estate Ventures. (c) The Company sold its 50% ownership interest in evo at Cira Centre South Venture during the first quarter of 2018 . Brandywine - AI Venture: 3130 Fairview Park Drive On August 29, 2019, BDN – AI Venture transferred an office building located in Falls Church, Virginia and containing 180,659 rentable square feet to the mortgage lender in full satisfaction of the lender’s outstanding $26.0 million mortgage loan. The mortgage loan was nonrecourse to the Company. The Company recorded its $2.2 million share of the gain on debt forgiveness as "Net gain on real estate venture transactions" in its consolidated statements of operations for the three months ended September 30, 2019. MAP Venture The Company holds a 50% ownership interest in the MAP Ground Lease Venture LLC (the “MAP Venture”) which is the lessee under a 99 years ground lease of land parcels underlying 58 office properties owned by the MAP Venture. Upon adoption of Topic 842, Leases, on January 1, 2019, the MAP Venture determined that the carrying amount of the right of use asset was greater than the fair value of the underlying right of use asset. The fair value of the underlying right of use asset was determined using the purchase price paid by a third-party to acquire the ground lease. As a result, MAP Venture recorded a $9.2 million cumulative effect of accounting change adjustment simultaneously with the recording of the right of use asset to reduce the value of the right of use asset to its estimated fair value. The Company recorded its $4.6 million proportionate share of the cumulative effect of accounting change adjustment through "Cumulative earnings” on its consolidated balance sheets. Herndon Innovation Center Metro Portfolio Venture, LLC On March 29, 2019, Herndon Innovation Center Metro Portfolio Venture, LLC (“Herndon Innovation Center Venture”), in which the Company holds a 15% ownership interest, obtained $134.1 million of third-party debt financing, secured by four properties within the venture, with an initial advance of $113.1 million . The remaining funds available under the loan have not yet been drawn. On April 1, 2019, the venture received $111.0 million in net cash proceeds from the financing. The Company received $16.7 million for its share of the cash proceeds on April 12, 2019. The loan bears interest at LIBOR + 1.95% capped at a total maximum interest rate of 5.45% - 6.45% over the term of the loan and matures on March 29, 2024 . On April 11, 2019, the venture obtained an additional $115.3 million of third-party debt financing secured by the remaining four properties within the venture. The loan bears interest at LIBOR + 1.80% capped at a total maximum interest rate of 6.3% and matures on April 11, 2024 . On April 12, 2019, the Company received $13.8 million for its share of the cash proceeds from the financing. Guarantees As of September 30, 2019 , the Real Estate Ventures had aggregate indebtedness of $592.4 million . These loans are generally mortgage or construction loans, most of which are nonrecourse to the Company, except for customary carve-outs. As of September 30, 2019 , the loans to Real Estate Ventures for which there is recourse to the Company consisted of the following: ( i) a $0.3 million payment guarantee on a loan with a $3.7 million outstanding principal balance, provided to PJP VII; and (ii) up to a $41.3 million payment guarantee on a $150.0 million construction loan provided to 4040 Wilson. In addition, during construction undertaken by any of the Real Estate Ventures, including 4040 Wilson, the Company has provided and expects to continue to provide cost overrun and completion guarantees, with rights of contribution among partners or members in the Real Estate Ventures, as well as customary environmental indemnities and guarantees of customary exceptions to nonrecourse provisions in loan agreements. |
Intangible Assets and Liabiliti
Intangible Assets and Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND LIABILITIES | INTANGIBLE ASSETS AND LIABILITIES As of September 30, 2019 and December 31, 2018 , the Company’s intangible assets/liabilities were comprised of the following (in thousands): September 30, 2019 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 168,881 $ (74,951 ) $ 93,930 Tenant relationship value 5,268 (4,728 ) 540 Above market leases acquired 4,955 (3,627 ) 1,328 Total intangible assets, net $ 179,104 $ (83,306 ) $ 95,798 Total Cost Accumulated Amortization Intangible Liabilities, net Acquired lease intangibles, net: Below market leases acquired $ 44,876 $ (20,826 ) $ 24,050 December 31, 2018 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 181,887 $ (53,376 ) $ 128,511 Tenant relationship value 9,564 (8,551 ) 1,013 Above market leases acquired 4,966 (3,142 ) 1,824 Total intangible assets, net $ 196,417 $ (65,069 ) $ 131,348 Total Cost Accumulated Amortization Intangible Liabilities, net Acquired lease intangibles, net: Below market leases acquired $ 49,655 $ (17,872 ) $ 31,783 As of September 30, 2019 , the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands): Assets Liabilities 2019 (three months remaining) $ 10,057 $ 1,696 2020 28,185 5,299 2021 18,289 3,890 2022 12,153 2,270 2023 9,236 1,722 Thereafter 17,878 9,173 Total $ 95,798 $ 24,050 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Effective Interest Rate Maturity Date MORTGAGE DEBT: Two Logan Square $ 81,535 $ 82,805 3.98% May 2020 Four Tower Bridge 9,351 9,526 4.50% February 2021 One Commerce Square 117,486 120,183 3.64% April 2023 Two Commerce Square 108,991 110,518 4.51% April 2023 Principal balance outstanding 317,363 323,032 Plus: fair market value premium (discount), net (1,477 ) (1,759 ) Less: deferred financing costs (283 ) (404 ) Mortgage indebtedness $ 315,603 $ 320,869 UNSECURED DEBT $600 million Unsecured Credit Facility $ 146,500 $ 92,500 LIBOR + 1.10% July 2022 Seven-Year Term Loan - Swapped to fixed 250,000 250,000 2.87% October 2022 $350.0M 3.95% Guaranteed Notes due 2023 350,000 350,000 3.87% February 2023 $250.0M 4.10% Guaranteed Notes due 2024 250,000 250,000 4.33% October 2024 $450.0M 3.95% Guaranteed Notes due 2027 450,000 450,000 4.03% November 2027 $250.0M 4.55% Guaranteed Notes due 2029 250,000 250,000 4.60% October 2029 Indenture IA (Preferred Trust I) 27,062 27,062 LIBOR + 1.25% March 2035 Indenture IB (Preferred Trust I) - Swapped to fixed 25,774 25,774 3.30% April 2035 Indenture II (Preferred Trust II) - Swapped to fixed 25,774 25,774 3.09% July 2035 Principal balance outstanding 1,775,110 1,721,110 Plus: original issue premium (discount), net (3,852 ) (4,096 ) Less: deferred financing costs (8,606 ) (9,837 ) Total unsecured indebtedness $ 1,762,652 $ 1,707,177 Total Debt Obligations $ 2,078,255 $ 2,028,046 As of both September 30, 2019 and December 31, 2018 , the Company’s weighted-average effective interest rates on its mortgage notes payable was 4.05% . In addition to the debt described above, the Company utilizes borrowings under its unsecured revolving credit facility (the “Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, fund share repurchases and to repay other debt. The Credit Facility provides for borrowings of up to $600.0 million and the per annum variable interest rate on borrowings is LIBOR plus 1.10% . The interest rate and facility fee are subject to adjustment upon a change in the Company’s unsecured debt ratings. During the nine months ended September 30, 2019 , the weighted-average interest rate on Credit Facility borrowings was 3.5% resulting in $4.2 million of interest expense. As of September 30, 2019 , the effective interest rate on Credit Facility borrowings was 3.2% . The Company had no borrowings under the Credit Facility as of and during the nine -months ended September 30, 2018 . The Parent Company unconditionally guarantees the unsecured debt obligations of the Operating Partnership (or is a co-borrower with the Operating Partnership) but does not by itself incur unsecured indebtedness. The Parent Company has no material assets other than its investment in the Operating Partnership. The Company was in compliance with all financial covenants as of September 30, 2019 . Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. As of September 30, 2019 , the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands): 2019 (three months remaining) $ 1,926 2020 87,225 2021 15,143 2022 402,832 2023 556,737 Thereafter 1,028,610 Total principal payments 2,092,473 Net unamortized premiums/(discounts) (5,329 ) Net deferred financing costs (8,889 ) Outstanding indebtedness $ 2,078,255 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Financial assets and liabilities recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access; • Level 2 inputs are inputs, other than quoted prices included in Level 1, which are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals; and • Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. The Company determined the fair values disclosed below using available market information and discounted cash flow analyses as of September 30, 2019 and December 31, 2018 , respectively. The discount rate used in calculating fair value is the sum of the current risk free rate and the risk premium on the date of measurement of the instruments or obligations. Considerable judgment is necessary to interpret market data and to develop the related estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize upon disposition. The use of different estimates and valuation methodologies may have a material effect on the fair value amounts shown. The Company believes that the carrying amounts reflected in the consolidated balance sheets at September 30, 2019 and December 31, 2018 approximate the fair values for cash and cash equivalents, accounts receivable, other assets (except for the note receivable disclosed below), and accounts payable and accrued expenses. The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands): September 30, 2019 December 31, 2018 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,289,112 $ 1,366,900 $ 1,288,024 $ 1,262,570 Variable rate debt $ 473,540 $ 456,478 $ 419,153 $ 402,924 Mortgage notes payable $ 315,603 $ 320,761 $ 320,869 $ 318,515 Notes receivable $ 44,430 $ 40,844 $ 47,771 $ 47,747 (a) Amounts presented are net of deferred financing costs of $7.0 million and $7.9 million for unsecured notes payable, $1.6 million and $5.1 million for variable rate debt and $0.3 million and $0.4 million for mortgage notes payable as of September 30, 2019 and December 31, 2018 , respectively. On June 26, 2018, the Company provided a $44.4 million mortgage loan to Brandywine 1919 Ventures, an unconsolidated real estate venture in which the Company holds a 50% ownership interest, and recorded a note receivable of $44.4 million . Refer to Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 for further detail regarding this financing. The Company used quoted market prices as of September 30, 2019 and December 31, 2018 to value the unsecured notes payable and, as such, categorized them as Level 2. For the fair value of the Company’s unsecured notes, the Company uses a discount rate based on the indicative new issue pricing provided by lenders. The inputs utilized to determine the fair value of the Company’s mortgage notes payable and variable rate debt are categorized as Level 3. The fair value of the variable rate debt was determined using a discounted cash flow model that considered borrowing rates available to the Company for loans with similar terms and characteristics. The fair value of the mortgage notes payable was determined using a discounted cash flow model that considered the contractual interest and principal payments discounted at a blended market rate for loans with similar terms, maturities and loan-to-value. These inputs have been categorized as Level 3 because the Company considers the rates used in the valuation techniques to be unobservable. The inputs utilized to determine fair value of the Company's notes receivable are unobservable and, as such, were categorized as Level 3. Fair value was determined using a discounted cash flow model that considered the contractual interest and principal payments discounted at a blended interest rate of the notes receivable. For the Company’s level 3 financial instruments for which fair value is disclosed, an increase in the discount rate used to determine fair value would result in a decrease to the fair value. Conversely, a decrease in the discount rate would result in an increase to the fair value. Disclosure about the fair value of financial instruments is based upon pertinent information available to management as of September 30, 2019 and December 31, 2018 . Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since September 30, 2019 , and current estimates of fair value may differ from the amounts presented herein. |
Limited Partners' Non-Controlli
Limited Partners' Non-Controlling Interests in the Parent Company | 9 Months Ended |
Sep. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
LIMITED PARTNERS' NON-CONTROLLING INTERESTS IN THE PARENT COMPANY | LIMITED PARTNERS' NON-CONTROLLING INTERESTS IN THE PARENT COMPANY Non-controlling interests in the Parent Company’s financial statements relate to redeemable common limited partnership interests in the Operating Partnership held by parties other than the Parent Company and properties which are consolidated but not wholly owned by the Operating Partnership. Operating Partnership The aggregate book value of the non-controlling interests associated with the redeemable common limited partnership interests in the accompanying consolidated balance sheet of the Parent Company was $9.4 million and $10.1 million as of September 30, 2019 and December 31, 2018 , respectively. Under the applicable accounting guidance, the redemption value of limited partnership units are carried at, on a limited partner basis, the greater of historical cost adjusted for the allocation of income and distributions or fair value. The Parent Company believes that the aggregate settlement value of these interests, based on the number of units outstanding and the closing price of the common shares on the balance sheet dates as of September 30, 2019 and December 31, 2018 , was approximately $14.9 million and $12.6 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of September 30, 2019 and December 31, 2018 . The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time, but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands and included in other assets and other liabilities on the Company’s consolidated balance sheets). Hedge Product Hedge Type Designation Notional Amount Strike Trade Date Maturity Date Fair value 9/30/2019 12/31/2018 9/30/2019 12/31/2018 Assets Swap Interest Rate Cash Flow (a) $ 25,774 $ 25,774 3.090 % January 6, 2012 October 30, 2019 $ 28 $ 183 Liabilities Swap Interest Rate Cash Flow (a) $ 250,000 $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ (1,586 ) $ 7,008 Swap Interest Rate Cash Flow (a) $ 25,774 $ 25,774 3.300 % December 22, 2011 January 30, 2021 (99 ) 292 $ 301,548 $ 301,548 (a) Hedging unsecured variable rate debt. The Company measures its derivative instruments at fair value and records them in “Other assets” and (“Other liabilities”) on the Company’s consolidated balance sheets. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that the inputs utilized to determine the fair value of derivative instruments are classified in Level 2 of the fair value hierarchy. Disclosure about the fair value of derivative instruments is based upon pertinent information available to management as of September 30, 2019 and December 31, 2018 . Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since September 30, 2019 . Current estimates of fair value may differ from the amounts presented herein. |
Beneficiaries Equity of the Par
Beneficiaries Equity of the Parent Company | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
BENEFICIARIES' EQUITY OF THE PARENT COMPANY | BENEFICIARIES’ EQUITY OF THE PARENT COMPANY Earnings per Share (EPS) The following tables detail the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding): Three Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income (loss) $ 6,820 $ 6,820 $ (43,522 ) $ (43,522 ) Net (income) loss attributable to noncontrolling interests (48 ) (48 ) 342 342 Nonforfeitable dividends allocated to unvested restricted shareholders (93 ) (93 ) (80 ) (80 ) Net income (loss) attributable to common shareholders $ 6,679 $ 6,679 $ (43,260 ) $ (43,260 ) Denominator Weighted-average shares outstanding 176,195,244 176,195,244 178,602,622 178,602,622 Contingent securities/Share based compensation — 555,356 — — Weighted-average shares outstanding 176,195,244 176,750,600 178,602,622 178,602,622 Earnings (loss) per Common Share: Net income (loss) attributable to common shareholders $ 0.04 $ 0.04 $ (0.24 ) $ (0.24 ) Nine Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income $ 17,655 $ 17,655 $ 13,799 $ 13,799 Net income attributable to noncontrolling interests (155 ) (155 ) (162 ) (162 ) Nonforfeitable dividends allocated to unvested restricted shareholders (305 ) (305 ) (280 ) (280 ) Net income attributable to common shareholders $ 17,195 $ 17,195 $ 13,357 $ 13,357 Denominator Weighted-average shares outstanding 176,066,507 176,066,507 178,515,993 178,515,993 Contingent securities/Share based compensation — 551,219 — 1,236,551 Weighted-average shares outstanding 176,066,507 176,617,726 178,515,993 179,752,544 Earnings per Common Share: Net income attributable to common shareholders $ 0.10 $ 0.10 $ 0.07 $ 0.07 Redeemable common limited partnership units totaling 981,626 at September 30, 2019 and 1,479,799 at September 30, 2018 , were excluded from the diluted earnings per share computations because they are not dilutive. Unvested restricted shares are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the three and nine months ended September 30, 2019 and 2018 , earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted shares issued to the Company’s executives and other employees under the Company's shareholder-approved long-term incentive plan. Common Shares On September 10, 2019, the Parent Company declared a distribution of $0.19 per common share, totaling $33.8 million , which was paid on October 17, 2019 to shareholders of record as of October 3, 2019. The Parent Company maintains a common share repurchase program under which the Board of Trustees has authorized the Parent Company to repurchase common shares. On January 3, 2019, the Board of Trustees authorized the repurchase of up to $150.0 million common shares from and after January 3, 2019. During the nine months ended September 30, 2019 , the Company repurchased and retired 1,337,169 common shares at an average price of $12.92 per share, totaling $17.3 million . There were no share repurchases during the three months ended September 30, 2019 . |
Partners Equity of The Operatin
Partners Equity of The Operating Partnership | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
PARTNERS' EQUITY OF THE OPERATING PARTNERSHIP | PARTNERS’ EQUITY OF THE OPERATING PARTNERSHIP Earnings per Common Partnership Unit The following tables detail the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding): Three Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income (loss) $ 6,820 $ 6,820 $ (43,522 ) $ (43,522 ) Net income attributable to noncontrolling interests (11 ) (11 ) (20 ) (20 ) Nonforfeitable dividends allocated to unvested restricted unitholders (93 ) (93 ) (80 ) (80 ) Net income (loss) attributable to common unitholders $ 6,716 $ 6,716 $ (43,622 ) $ (43,622 ) Denominator Weighted-average units outstanding 177,176,870 177,176,870 180,082,421 180,082,421 Contingent securities/Share based compensation — 555,356 — — Total weighted-average units outstanding 177,176,870 177,732,226 180,082,421 180,082,421 Earnings (loss) per Common Partnership Unit: Net income (loss) attributable to common unitholders 0.04 0.04 (0.24 ) (0.24 ) Nine Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income $ 17,655 $ 17,655 $ 13,799 $ 13,799 Net income attributable to noncontrolling interests (58 ) (58 ) (46 ) (46 ) Nonforfeitable dividends allocated to unvested restricted unitholders (305 ) (305 ) (280 ) (280 ) Net income attributable to common unitholders $ 17,292 $ 17,292 $ 13,473 $ 13,473 Denominator Weighted-average units outstanding 177,048,621 177,048,621 179,995,792 179,995,792 Contingent securities/Share based compensation — 551,219 — 1,236,551 Total weighted-average units outstanding 177,048,621 177,599,840 179,995,792 181,232,343 Earnings per Common Partnership Unit Net income attributable to common unitholders $ 0.10 $ 0.10 $ 0.07 $ 0.07 Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the three and nine months ended September 30, 2019 and 2018 , earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units issued to the Parent Company in connection with awards to the Parent Company’s executives and other employees under the Parent Company's shareholder-approved long-term incentive plan. Common Partnership Units On September 10, 2019, the Operating Partnership declared a distribution of $0.19 per common partnership unit, totaling $33.8 million , which was paid on October 17, 2019 to unitholders of record as of October 3, 2019 . In connection with the Parent Company’s common share repurchase program, one common unit of the Operating Partnership is retired for each common share repurchased. During the nine months ended September 30, 2019 , the Company retired 1,337,169 common partnership units at an average price of $12.92 per unit, totaling $17.3 million , in connection with an equal number of share repurchases. There were no share repurchases during the three months ended September 30, 2019 . |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION As of September 30, 2019 , the Company owns and manages properties within five segments: (1) Philadelphia Central Business District (Philadelphia CBD), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and southern Maryland. The Other segment includes properties located in Camden County in New Jersey and properties in New Castle County in Delaware. In addition to the five segments, the corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress is transferred to operating properties by region upon completion of the associated construction or project. The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands): Real estate investments, at cost: September 30, 2019 December 31, 2018 Philadelphia CBD $ 1,716,466 $ 1,670,388 Pennsylvania Suburbs 1,005,332 1,002,937 Austin, Texas 719,441 667,698 Metropolitan Washington, D.C. 467,117 524,190 Other 86,872 86,506 $ 3,995,228 $ 3,951,719 Right of use asset - operating leases, net (a) $ 21,828 $ — Corporate Construction-in-progress $ 151,232 $ 150,263 Land held for development (b) $ 92,189 $ 86,401 Prepaid leasehold interests in land held for development, net (c) $ 39,694 $ 39,999 (a) On January 1, 2019, as a result of the adoption of Topic 842, Leases, the Company recognized operating ground leases for which it is a lessee on its consolidated balance sheets. See Note 2, “ Basis of Presentation ,” for further information. (b) As of September 30, 2019 , the Company categorized 35.2 acres of land held for development, located in the Other segment, as held for sale in accordance with applicable accounting standards for long lived assets. As of December 31, 2018 , the Company categorized 37.9 acres of land held for development, comprised of 2.7 acres and 35.2 acres, located in the Pennsylvania Suburbs segment and Other segment, respectively, as held for sale in accordance with applicable accounting standards for long lived assets. See Note 3, “Real Estate Investments ,” for further information. (c) As of September 30, 2019 and December 31, 2018 , this caption comprised leasehold interests in prepaid 99 -year ground leases at 3025 and 3001-3003 JFK Boulevard, in Philadelphia, Pennsylvania. Net operating income (in thousands): Three Months Ended September 30, 2019 2018 Total revenue Operating expenses (a) Net operating income (loss) Total revenue Operating expenses (a) Net operating income (loss) Philadelphia CBD $ 66,105 $ (24,773 ) $ 41,332 $ 64,352 $ (24,427 ) $ 39,925 Pennsylvania Suburbs 34,818 (11,667 ) 23,151 34,745 (11,956 ) 22,789 Austin, Texas (b) 26,280 (9,302 ) 16,978 8,641 (3,894 ) 4,747 Metropolitan Washington, D.C. (c) 13,179 (5,999 ) 7,180 22,754 (8,548 ) 14,206 Other 3,706 (2,691 ) 1,015 3,707 (2,436 ) 1,271 Corporate 1,243 (1,642 ) (399 ) 799 (1,636 ) (837 ) Operating properties $ 145,331 $ (56,074 ) $ 89,257 $ 134,998 $ (52,897 ) $ 82,101 Nine Months Ended September 30, 2019 2018 Total revenue Operating expenses (a) Net operating income (loss) Total revenue Operating expenses (a) Net operating income (loss) Philadelphia CBD $ 196,859 $ (75,311 ) $ 121,548 $ 190,478 $ (73,559 ) 116,919 Pennsylvania Suburbs 104,744 (36,466 ) 68,278 103,960 (37,075 ) 66,885 Austin, Texas (b) 77,234 (28,182 ) 49,052 25,474 (10,812 ) 14,662 Metropolitan Washington, D.C. (c) 40,372 (18,542 ) 21,830 69,012 (25,699 ) 43,313 Other 10,352 (7,226 ) 3,126 13,187 (9,601 ) 3,586 Corporate 3,817 (4,969 ) (1,152 ) 3,031 (5,240 ) (2,209 ) Operating properties $ 433,378 $ (170,696 ) $ 262,682 $ 405,142 $ (161,986 ) $ 243,156 (a) Includes property operating expenses, real estate taxes and third party management expense. (b) On December 11, 2018, the Company acquired from DRA Advisors, an unaffiliated third party, DRA’s 50% ownership interest in the G&I Austin Office LLC real estate venture. The DRA Austin Venture owned twelve office properties containing an aggregate 1,570,123 square feet, located in Austin, Texas. As a result of the acquisition, the Company acquired complete ownership of the Austin properties. (c) On December 20, 2018, the Company contributed a portfolio of eight properties containing an aggregate of 1,293,197 square feet, located in its Metropolitan Washington, D.C. segment, known as the Rockpoint Portfolio, to the Herndon Innovation Center Venture. The Company and its partner own 15% and 85% interests in the Herndon Innovation Center Venture, respectively. Unconsolidated real estate ventures (in thousands): Investment in real estate ventures Equity in income (loss) of real estate venture As of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2019 December 31, 2018 2019 2018 2019 2018 Philadelphia CBD $ 18,114 $ 19,897 $ 55 $ (36 ) $ 217 $ (183 ) Metropolitan Washington, D.C. (a) (b) 106,111 136,142 (528 ) (31 ) (963 ) (431 ) MAP Venture (c) 1,620 11,173 (1,602 ) (444 ) (4,414 ) (2,011 ) Other 1,914 1,888 110 89 346 287 Austin, Texas (d) — — — 423 — 1,156 Total $ 127,759 $ 169,100 $ (1,965 ) $ 1 $ (4,814 ) $ (1,182 ) (a) On December 20, 2018, the Company formed the Herndon Innovation Center Venture. See footnote (c) to the “Net operating income” table above for further information regarding this transaction. (b) On August 29, 2019, BDN – AI Venture transferred an office building to the lender in full satisfaction of the outstanding mortgage loan. Refer to Note 4, “Investment in Unconsolidated Real Estate Ventures” for further information. (c) Represents a joint venture formed on February 4, 2016 between the Company and MAP Ground Lease Holdings LLC, an affiliate of Och-Ziff Capital Management Group, LLC. The business operations, including properties in Richmond, Virginia; Metropolitan Washington, D.C.; New Jersey/Delaware and Pennsylvania Suburbs, are centrally managed with the results reported to management of the Company on a consolidated basis. As a result, the Company’s investment in MAP Venture is separately presented. All other unconsolidated real estate ventures are managed consistently with the Company’s regional segments. (d) On December 11, 2018, the Company acquired from DRA Advisors, an unaffiliated third party, DRA’s 50% ownership interest in the G&I Austin Office LLC real estate venture. The DRA Austin Venture owned twelve office properties containing an aggregate 1,570,123 square feet, located in Austin, Texas. As a result of the acquisition, the Company acquired complete ownership of the Austin properties. Net operating income (“NOI”) is a non-GAAP financial measure defined as total revenue less property operating expenses, real estate taxes and third party management expenses. Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance and management fees. General and administrative expenses that are not reflected in NOI primarily consist of corporate-level salaries, amortization of share awards and professional fees that are incurred as part of corporate office management. All companies may not calculate NOI in the same manner. NOI is the measure that is used by the Company’s management to evaluate the operating performance of the Company’s real estate assets by segment. The Company believes NOI provides useful information to investors regarding the financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. While NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. NOI does not reflect interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. The Company believes that net income (loss), as defined by GAAP, is the most appropriate earnings measure. The following is a reconciliation of consolidated net income, as defined by GAAP, to consolidated NOI, (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 6,820 $ (43,522 ) $ 17,655 $ 13,799 Plus: Interest expense 20,400 19,257 61,273 58,091 Interest expense - amortization of deferred financing costs 694 618 2,026 1,872 Depreciation and amortization 55,627 44,141 158,738 131,631 General and administrative expenses 6,974 5,963 25,217 22,209 Equity in loss (income) of Real Estate Ventures 1,965 (1 ) 4,814 1,182 Provision for impairment — 56,865 — 56,865 Less: Interest income 558 1,220 1,636 2,564 Income tax provision — — (46 ) (158 ) Net gain (loss) on disposition of real estate 356 — 356 (35 ) Net gain on sale of undepreciated real estate 250 — 1,501 2,859 Net gain on real estate venture transactions 2,059 — 3,594 37,263 Consolidated net operating income $ 89,257 $ 82,101 $ 262,682 $ 243,156 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is involved from time to time in litigation on various matters, including disputes with tenants, vendors and disputes arising out of agreements to purchase or sell properties. Given the nature of the Company’s business activities, these lawsuits are considered routine to the conduct of its business. The result of any particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system. The Company will establish reserves for specific legal proceedings when it determines that the likelihood of an unfavorable outcome is probable and when the amount of loss is reasonably estimable. The Company does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company. Letters-of-Credit Under certain mortgages, including mortgages held by real estate ventures, the Company may be required to fund required leasing and capital reserve accounts for the benefit of the mortgage lenders with a letter-of-credit. There were no associated letters-of-credit for a mortgage lender on September 30, 2019 . Certain of the tenant rents at properties that secure these mortgage loans are deposited into the loan servicer’s depository accounts, which are used to fund debt service, operating expenses, capital expenditures and the escrow and reserve accounts, as necessary. Any excess cash is included in cash and cash equivalents. Environmental As an owner of real estate, the Company is subject to various environmental laws of federal, state, and local governments. The Company’s compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Company does not believe it will have a material adverse effect in the future. However, the Company cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current Properties or on properties that the Company may acquire. Ground Rent Lease payments by the Company under the terms of all non-cancelable ground leases of land on which properties in the Company’s consolidated portfolio are situated are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 9 to 65 years . Lease payments on non-cancelable leases at September 30, 2019 , which, where applicable, considered CPI index rates upon adoption of Topic 842, are as follows (in thousands): Year Minimum Rent 2019 (three months remaining) $ 303 2020 1,217 2021 1,232 2022 1,248 2023 1,263 Thereafter 111,757 Total lease payments $ 117,020 Less: Imputed interest (94,517 ) Present value of operating lease liabilities $ 22,503 Lease payments on non-cancelable leases at December 31, 2018 , which were determined under ASC 840 and are therefore not adjusted for increases based on CPI, are as follows (in thousands): Year Minimum Rent 2019 $ 1,222 2020 1,222 2021 1,222 2022 1,222 2023 1,222 Thereafter 55,689 Total $ 61,799 The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of lease payments does not include any contingent rent amounts or any reimbursed expenses. Fair Value of Contingent Consideration On April 2, 2015, the Company purchased 618 Market Street in Philadelphia, Pennsylvania. The allocated purchase price included contingent consideration of $2.0 million payable to the seller upon commencement of development. The liability was initially recorded at fair value of $1.6 million and will accrete through interest expense to $2.0 million over the expected period until development is commenced. The fair value of this contingent consideration was determined using a probability weighted discounted cash flow model. The significant inputs to the discounted cash flow model were the discount rate and weighted probability scenarios. As the inputs are unobservable, the Company determined the inputs used to value this liability fall within Level 3 for fair value reporting. As of September 30, 2019 , the liability had accreted to $2.0 million . As there were no significant changes to the inputs, the liability remains within Level 3 for fair value reporting. Debt Guarantees As of September 30, 2019 , the Company’s unconsolidated real estate ventures had aggregate indebtedness of $592.4 million . These loans are generally mortgage or construction loans, most of which are nonrecourse to the Company, except for customary recourse carve-outs. As of September 30, 2019 , the loans for which the Company has provided recourse guarantees consist of the following: (i) a $0.3 million payment guarantee on a loan with a $3.7 million outstanding principal balance, provided to PJP VII; and (ii) up to a $41.3 million payment guarantee on a $150.0 million loan provided to 4040 Wilson. In addition, during construction undertaken by real estate ventures, including 4040 Wilson, the Company has provided and expects to continue to provide cost overrun and completion guarantees, with rights of contribution among partners or members in the real estate ventures, as well as customary environmental indemnities and guarantees of customary exceptions to nonrecourse provisions in loan agreements. Allowance for Doubtful Accounts As discussed in Note 2, “Basis of Presentation,” the Company, as lessor, initially analyzes each of its operating leases at the individual level to determine whether it is probable that the associated lease payments are collectible. If collectability for an individual lease is not considered probable, the Company recognizes lease revenue for that individual lease on a cash basis. For the remaining portfolio of operating leases that are individually considered collectible, the Company estimates that a portion ultimately will be uncollectible and, as such, have established and maintain a general allowance. As of September 30, 2019 , the general allowance for the remaining portfolio of operating leases that are individually considered collectible was $11.3 million . Other Commitments or Contingencies On October 13, 2017, the Company acquired a leasehold interest in the office building known as The Bulletin Building, in Philadelphia, Pennsylvania. In connection with the acquisition, the Company is required to spend no less than $8.0 million in capital improvements to the property. As of September 30, 2019 , $5.1 million of the funding related to this requirement had been met. The Company estimates that it will incur $39.0 million in excess of this funding requirement and expects to complete the redevelopment of The Bulletin Building during the second quarter of 2020 at an estimated aggregate cost of $84.8 million , inclusive of the acquisition cost of $37.8 million . During the fourth quarter of 2017 , in connection with the Schuylkill Yards Project with Drexel University, the Company entered into a neighborhood engagement program and, as of September 30, 2019 , had $8.5 million of future contractual obligations. In addition, the Company estimates $2.9 million of potential additional contributions for which the Company is not currently contractually obligated. The Company invests in its properties and regularly incurs capital expenditures in the ordinary course of business to maintain the properties. The Company believes that such expenditures enhance its competitiveness. The Company also enters into construction, utility and service contracts in the ordinary course of business which may extend beyond one year. These contracts typically provide for cancellation with insignificant or no cancellation penalties. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On October 10, 2019, the Company issued $100.0 million of 4.100% guaranteed notes due 2024 at a price of 106.315% of their principal amount, plus accrued and unpaid interest from and including October 1, 2019, with a re-offer yield of 2.669% and $100.0 million of 4.550% guaranteed notes due 2029 at a price of 110.058% of their principal amount, plus accrued and unpaid interest from and including October 1, 2019, with a re-offer yield of 3.331% for a combined net proceeds of approximately $214.3 million after deducting underwriting discounts and estimated transaction expenses. The Company used approximately $145.5 million of the net proceeds to repay the full outstanding amount on the unsecured credit facility. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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 ("U.S. 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 September 30, 2019 , the results of its operations for the three and nine months ended September 30, 2019 and 2018 and its cash flows for the nine months ended September 30, 2019 and 2018 . 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 2018 Annual Report on Form 10-K filed with the SEC on February 22, 2019. The Company's Annual Report on Form 10-K for the year ended December 31, 2018 contains a discussion of our significant accounting policies under Note 2, "Summary of Significant Accounting Policies". Other than the adoption of ASU-2016-02, Leases (Topic 842), there have been no significant changes in our significant accounting policies since December 31, 2018 . The Company reclassified tenant reimbursements and termination fees from “Tenant reimbursements” and “Termination fees,” respectively, to “Rents” on the consolidated statements of operations as a result of the adoption of Topic 842. Prior periods have been revised to conform to current period presentation. |
Revision of Previously Issued Financial Statements | Revision of Previously Issued Financial Statements The Company’s comparative 2018 results have been adjusted to correct for the effects of errors discovered during the second quarter of 2019 relating to the purchase price allocation and depreciable lives for two acquisitions made in a prior period. The Company has evaluated the impact of the errors to previously issued financial statements and concluded that the errors were immaterial to the previously issued financial statements; however, to correct the cumulative effect of the errors in 2019 would significantly impact the 2019 financial statements. Accordingly, the previously issued financial statements have been corrected. The corrections to the balance sheets include a reduction in cumulative earnings and operating properties and an increase to accumulated depreciation. The corrections to the prior period income statements result in an increase in depreciation and amortization and property operating expenses. In addition, the impact of an immaterial out of period depreciation adjustment, which was previously disclosed in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2019, has been reflected in the correct period. The following tables and paragraphs present line items of the previously issued financial statements that have been corrected as a result of the revision: Balance sheet impacts (in thousands) : December 31, 2018 Balance Sheet: As previously reported Adjustments As adjusted Assets (Parent Company and Operating Partnership) Operating properties 3,953,319 (1,600 ) 3,951,719 Accumulated depreciation (865,462 ) (19,945 ) (885,407 ) Operating real estate investments, net 3,087,857 (21,545 ) 3,066,312 Total assets 4,098,521 (21,545 ) 4,076,976 Equity (Parent Company) Additional Paid-in Capital 3,200,850 (538 ) 3,200,312 Cumulative Earnings 796,513 (20,888 ) 775,625 Total Brandywine Realty Trust's equity 1,820,253 (21,426 ) 1,798,827 Noncontrolling interests 12,320 (119 ) 12,201 Total beneficiaries' equity 1,832,573 (21,545 ) 1,811,028 Total liabilities and beneficiaries' equity 4,098,521 (21,545 ) 4,076,976 Equity (Operating Partnership) General Partnership Capital 1,813,136 (21,545 ) 1,791,591 Total Brandywine Operating Partnership, L.P.'s equity 1,817,861 (21,545 ) 1,796,316 Total partners' equity 1,820,053 (21,545 ) 1,798,508 Total liabilities and partners' equity 4,098,521 (21,545 ) 4,076,976 Statement of Beneficiaries’ / Partners’ Equity impacts (in thousands): Three and Nine Months Ended September 30, 2018 Brandywine Realty Trust As previously reported Adjustments As adjusted Statement of Beneficiaries' Equity: Additional paid-in capital, beginning of period 3,218,564 (487 ) 3,218,077 Cumulative earnings, beginning of period 660,174 (19,081 ) 641,093 Noncontrolling interest, beginning of period 17,420 (162 ) 17,258 Additional paid-in capital, March 31, 2018 3,222,047 (487 ) 3,221,560 Cumulative earnings, March 31, 2018 704,506 (19,340 ) 685,166 Noncontrolling interests, March 31, 2018 17,538 (163 ) 17,375 Additional paid-in capital, June 30, 2018 3,223,072 (487 ) 3,222,585 Cumulative earnings, June 30, 2018 717,515 (19,599 ) 697,916 Noncontrolling interests, June 30, 2018 17,410 (164 ) 17,246 Additional paid-in capital, September 30, 2018 3,223,817 (499 ) 3,223,318 Cumulative earnings, September 30, 2018 674,599 (19,855 ) 654,744 Noncontrolling interests, September 30, 2018 16,824 (155 ) 16,669 Brandywine Operating Partnership Statement of Partners' Equity: Partner Capital, beginning of period 1,815,411 (19,727 ) 1,795,684 Partner Capital, March 31, 2018 1,834,947 (19,987 ) 1,814,960 Partner Capital, June 30, 2018 1,814,870 (20,247 ) 1,794,623 Partner Capital, September 30, 2018 1,741,379 (20,509 ) 1,720,870 Statement of Operations impacts: Net income for the three and nine months ended September 30, 2018 has been reduced by $0.3 million and $0.8 million respectively, with a $0.01 decrease to basic and diluted income per common share and per common partnership unit for the nine months ended September 30, 2019. There was no change to any previously reported net income per share amount for the three months ended September 30, 2018 . There were no impacts to cash flows from operating activities in any period. |
Adoptions of New Accounting Guidance | Adoption of New Accounting Guidance In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), modifying the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and lease liability for all leases with a term of greater than twelve months regardless of their classification. Leases with a term of twelve months or less will be accounted for in the same manner as operating leases under ASC 840, Leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to previous guidance for sales-type leases, direct financing leases, and operating leases. The guidance supersedes previously issued guidance under ASC 840. The Company adopted Topic 842 effective January 1, 2019. In applying the modified retrospective transition method, the Company elected the package of practical expedients available for implementation, which allows for the following: • An entity need not reassess whether any expired or existing contracts are or contain leases; • An entity need not reassess the lease classification for any expired or existing leases; and • An entity need not reassess initial indirect costs for any existing leases. Furthermore, the Company elected the optional transition method to make January 1, 2019 the initial application date of the standard. This package of practical expedients allows entities to account for their existing leases for the remainder of their respective lease terms following the previous accounting guidance. The Company also elected to adopt the optional transition practical expedient provided in ASU 2018-01 to not evaluate under Topic 842 for existing or expired land easements prior to the application date to determine if they meet the definition of a lease. The Company also elected to adopt the practical expedient offered in ASU 2018-11 that allows lessors to not allocate the total consideration to lease and nonlease components, such as tenant reimbursements, based on their relative standalone selling prices as the timing and pattern of revenue recognition of the combined single lease component is the same and the leases are classified as operating leases. The Company elected to adopt ASU 2018-20, which allows lessors to not evaluate whether certain sales taxes and other similar taxes are lessor costs or lessee costs. Instead, lessors will account for those costs as if they are lessee costs. All collections from lessees of taxes within the scope of the election are excluded from the consideration of the contract and from variable payments not included in the consideration of the contract. |
Lessor Accounting | Lessor accounting The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. As of September 30, 2019 , the Company does not have any leases classified as direct-financing or sales-type leases. The operating leases have various expiration dates . Lease payments on non-cancellable leases at September 30, 2019 are as follows (in thousands): Year Minimum Rent 2019 (three months remaining) $ 97,250 2020 386,991 2021 364,435 2022 324,296 2023 296,890 Thereafter 1,413,756 Total $ 2,883,618 Lease payments on non-cancellable leases at December 31, 2018 are as follows (in thousands): Year Minimum Rent 2019 $ 392,058 2020 372,619 2021 349,160 2022 304,445 2023 277,388 Thereafter 1,265,810 Total $ 2,961,480 Fixed lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based. In November 2018, the FASB issued ASU No. 2018-19, which clarifies that operating lease receivables are not within the scope of ASC 326-20 and should instead be accounted for under the new leasing standard, ASC 842. Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis. The Company has evaluated all leases for collectability and is recognizing lease payments for certain leases on a cash basis because collectability of substantially all of the lease payments is not probable. As a result, the write off of the accrued rent receivable of $0.7 million was recorded by the Company upon adoption of Topic 842 as a cumulative effect of accounting change adjustment to equity through “Cumulative earnings” on the consolidated balance sheets. The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded the improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term. For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term. The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. The Company also contracts with third-party vendors and suppliers for goods and services to fulfill certain of the Company’s obligations to tenants. Tenant reimbursement s are billed in the period in which the related expenses are incurred. The table below sets forth the allocation of lease revenue recognized between fixed contractual payments and variable lease payments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Revenue 2019 2019 Fixed contractual payments $ 110,535 $ 327,252 Variable lease payments 28,693 87,861 Total $ 139,228 $ 415,113 Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract . |
Lessee Accounting | Lessee Accounting The Company is the lessee under six long-term ground leases classified as operating leases. While adoption of the practical expedient allows the Company to not revisit the classification of existing leases, the Company measured the present value of the future lease payments for each ground lease agreement and recognized a right of use asset and lease liability in the aggregate amount of $22.4 million , each as of January 1, 2019 in accordance with Topic 842. The right of use assets and lease liabilities are presented as “Right of use asset – operating leases” and “Lease liability – operating leases”, respectively, on the consolidated balance sheet as of September 30, 2019 . The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilized a market-based approach to estimate the IBR for each individual lease. The base IBR was estimated utilizing observable mortgage and corporate bond rates, which were then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed. Topic 842 requires use of the most recent CPI adjustment when determining the present value of the lease payments for an indexed lease. As such, the 2018 CPI index was used to determine the right of use asset and corresponding lease liability as of January 1, 2019. Additional rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs. The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2019 2019 Fixed lease cost $ 525 $ 1,575 Variable lease cost 13 41 Total $ 538 $ 1,616 Weighted-average remaining lease term (years) 52.9 Weighted-average discount rate 6.3 % |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments Credit Losses (Topic 326), which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current incurred loss model with an expected loss approach, resulting in more timely recognition of such losses. In November 2018, the FASB released ASU 2018-19, Codification Improvements to Topic 326, Financial Instrument - Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. The guidance is effective for the Company on January 1, 2020. The Company is in the process of evaluating the impact of this new guidance on reserves for notes receivable, but does not anticipate that the guidance will have a material impact on its consolidated financial statements. |
Organization of the Parent Co_2
Organization of the Parent Company and The Operating Partnership (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Core Portfolio of Operating Properties and Excludes Development, Redevelopment and Held for Sale | The Company’s core portfolio of operating properties excludes development properties, redevelopment properties, and properties held for sale (the “Core Properties”). The Properties were comprised of the following as of September 30, 2019 : Number of Properties Rentable Square Feet Office properties 87 15,509,004 Mixed-use properties 3 641,741 Retail property 1 17,884 Core Properties 91 16,168,629 Development property 1 204,108 Redevelopment properties 3 338,650 The Properties 95 16,711,387 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Revision of Previously Issued Financial Statements | The following tables and paragraphs present line items of the previously issued financial statements that have been corrected as a result of the revision: Balance sheet impacts (in thousands) : December 31, 2018 Balance Sheet: As previously reported Adjustments As adjusted Assets (Parent Company and Operating Partnership) Operating properties 3,953,319 (1,600 ) 3,951,719 Accumulated depreciation (865,462 ) (19,945 ) (885,407 ) Operating real estate investments, net 3,087,857 (21,545 ) 3,066,312 Total assets 4,098,521 (21,545 ) 4,076,976 Equity (Parent Company) Additional Paid-in Capital 3,200,850 (538 ) 3,200,312 Cumulative Earnings 796,513 (20,888 ) 775,625 Total Brandywine Realty Trust's equity 1,820,253 (21,426 ) 1,798,827 Noncontrolling interests 12,320 (119 ) 12,201 Total beneficiaries' equity 1,832,573 (21,545 ) 1,811,028 Total liabilities and beneficiaries' equity 4,098,521 (21,545 ) 4,076,976 Equity (Operating Partnership) General Partnership Capital 1,813,136 (21,545 ) 1,791,591 Total Brandywine Operating Partnership, L.P.'s equity 1,817,861 (21,545 ) 1,796,316 Total partners' equity 1,820,053 (21,545 ) 1,798,508 Total liabilities and partners' equity 4,098,521 (21,545 ) 4,076,976 Statement of Beneficiaries’ / Partners’ Equity impacts (in thousands): Three and Nine Months Ended September 30, 2018 Brandywine Realty Trust As previously reported Adjustments As adjusted Statement of Beneficiaries' Equity: Additional paid-in capital, beginning of period 3,218,564 (487 ) 3,218,077 Cumulative earnings, beginning of period 660,174 (19,081 ) 641,093 Noncontrolling interest, beginning of period 17,420 (162 ) 17,258 Additional paid-in capital, March 31, 2018 3,222,047 (487 ) 3,221,560 Cumulative earnings, March 31, 2018 704,506 (19,340 ) 685,166 Noncontrolling interests, March 31, 2018 17,538 (163 ) 17,375 Additional paid-in capital, June 30, 2018 3,223,072 (487 ) 3,222,585 Cumulative earnings, June 30, 2018 717,515 (19,599 ) 697,916 Noncontrolling interests, June 30, 2018 17,410 (164 ) 17,246 Additional paid-in capital, September 30, 2018 3,223,817 (499 ) 3,223,318 Cumulative earnings, September 30, 2018 674,599 (19,855 ) 654,744 Noncontrolling interests, September 30, 2018 16,824 (155 ) 16,669 Brandywine Operating Partnership Statement of Partners' Equity: Partner Capital, beginning of period 1,815,411 (19,727 ) 1,795,684 Partner Capital, March 31, 2018 1,834,947 (19,987 ) 1,814,960 Partner Capital, June 30, 2018 1,814,870 (20,247 ) 1,794,623 Partner Capital, September 30, 2018 1,741,379 (20,509 ) 1,720,870 |
Schedule Of Lease Payments on Non-Cancellable Leases | Lease payments on non-cancellable leases at September 30, 2019 are as follows (in thousands): Year Minimum Rent 2019 (three months remaining) $ 97,250 2020 386,991 2021 364,435 2022 324,296 2023 296,890 Thereafter 1,413,756 Total $ 2,883,618 Lease payments on non-cancellable leases at December 31, 2018 are as follows (in thousands): Year Minimum Rent 2019 $ 392,058 2020 372,619 2021 349,160 2022 304,445 2023 277,388 Thereafter 1,265,810 Total $ 2,961,480 |
Schedule Of Allocation Of Lease Revenue Recognized Between Fixed Contractual Payments And Variable Lease Payments | The table below sets forth the allocation of lease revenue recognized between fixed contractual payments and variable lease payments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Lease Revenue 2019 2019 Fixed contractual payments $ 110,535 $ 327,252 Variable lease payments 28,693 87,861 Total $ 139,228 $ 415,113 |
Summary of Operating Lease Cost Recognized Through Property Operating Expenses | The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, Lease Cost 2019 2019 Fixed lease cost $ 525 $ 1,575 Variable lease cost 13 41 Total $ 538 $ 1,616 Weighted-average remaining lease term (years) 52.9 Weighted-average discount rate 6.3 % |
Real Estate Investments (Tables
Real Estate Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Real Estate [Abstract] | |
Gross Carrying Value of Operating Properties | As of September 30, 2019 and December 31, 2018 , the gross carrying value of the operating properties was as follows (in thousands): September 30, 2019 December 31, 2018 Land $ 489,744 $ 487,301 Building and improvements 3,049,606 3,048,889 Tenant improvements 455,878 415,529 Total $ 3,995,228 $ 3,951,719 |
Summary of Gain on Sale for Each Land Parcel | The Company sold the following land parcel and recognized a gain on a property sold in a prior year during the nine months ended September 30, 2019 (dollars in thousands): Disposition Date Property/Portfolio Name Location Number of Parcels Acres Sales Price Net Proceeds on Sale Gain on Sale March 15, 2019 9 Presidential Boulevard Bala Cynwyd, PA 1 2.7 $ 5,325 $ 5,023 $ 751 January 8, 2015 Libertyview Cherry Hill, NJ — — — — 750 (a) Total Dispositions 1 2.7 $ 5,325 $ 5,023 $ 1,501 (a) As of January 2019, the Company expects to receive an additional $1.0 million of contingent consideration. The Company will recognize this consideration on a cash basis due to uncertainty of collectability. The $1.0 million consideration is payable to the Company in twelve equal installments, of which $0.8 million has been received during the nine months ended September 30, 2019 . |
Investment in Unconsolidated _2
Investment in Unconsolidated Real Estate Ventures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss) | The following is a summary of the financial position of the Real Estate Ventures in which the Company held interests as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Net property $ 841,743 $ 835,983 Other assets (a) 351,364 159,499 Other liabilities (a) 289,952 85,681 Debt, net (b) 581,024 365,707 Equity (c) 322,131 544,094 (a) The increase is due to the recording of lease related assets and liabilities of $197.1 million and $206.4 million , respectively, for MAP Venture in connection with the adoption of Topic 842. (b) The increase is due to third-party debt financing received by Herndon Innovation Center Venture during the three months ended March 31, 2019. See “Herndon Innovation Center Metro Portfolio Venture” section below for further information. (c) This amount includes the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level. The following is a summary of results of operations of the Real Estate Ventures in which the Company held interests during the three and nine -month periods ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, 2019 DRA (G&I) Austin (a) Brandywine-AI Venture LLC MAP Venture Other Total Revenue $ — $ 1,360 $ 17,476 $ 13,890 $ 32,726 Operating expenses — (871 ) (11,981 ) (5,017 ) (17,869 ) Interest expense, net — (222 ) (2,436 ) (3,522 ) (6,180 ) Depreciation and amortization — (540 ) (6,247 ) (6,307 ) (13,094 ) Gain on early extinguishment of debt $ — $ 4,371 $ — $ — $ 4,371 Net income (loss) $ — $ 4,098 $ (3,188 ) $ (956 ) $ (46 ) Ownership interest % — % 50 % 50 % (b) (b) Company's share of net income (loss) $ — $ 2,049 $ (1,594 ) $ (2,400 ) $ (1,945 ) Basis adjustments and other — 31 (28 ) (23 ) (20 ) Equity in income (loss) of Real Estate Ventures $ — $ 2,080 $ (1,622 ) $ (2,423 ) $ (1,965 ) Three Months Ended September 30, 2018 DRA (G&I) Austin (a) Brandywine-AI Venture LLC MAP Venture Other Total Revenue $ 14,232 $ 5,962 $ 17,243 $ 4,580 $ 42,017 Operating expenses (6,428 ) (2,589 ) (10,219 ) (1,904 ) (21,140 ) Interest expense, net (2,549 ) (873 ) (2,894 ) (1,228 ) (7,544 ) Depreciation and amortization (4,896 ) (2,232 ) (4,654 ) (1,481 ) (13,263 ) Loss on early extinguishment of debt — — (334 ) — (334 ) Net income (loss) $ 359 $ 268 $ (858 ) $ (33 ) $ (264 ) Ownership interest % 50 % 50 % 50 % (b) (b) Company's share of net income (loss) $ 180 $ 134 $ (429 ) $ (121 ) $ (236 ) Basis adjustments and other 243 31 (15 ) (22 ) 237 Equity in income (loss) of Real Estate Ventures $ 423 $ 165 $ (444 ) $ 144 $ 1 Nine months ended September 30, 2019 DRA (G&I) Austin (a) Brandywine-AI Venture LLC evo at Cira Centre South (c) MAP Venture Other Total Revenue $ — $ 5,050 $ — $ 53,560 $ 42,538 $ 101,148 Operating expenses — (2,473 ) — (35,747 ) (15,736 ) (53,956 ) Interest expense, net — (698 ) — (7,504 ) (8,219 ) (16,421 ) Depreciation and amortization — (2,055 ) — (19,146 ) (19,078 ) (40,279 ) Loss on early extinguishment of debt $ — $ 4,371 $ — $ — $ — $ 4,371 Net income (loss) $ — $ 4,195 $ — $ (8,837 ) $ (495 ) $ (5,137 ) Ownership interest % — % 50 % — % 50 % (b) (b) Company's share of net income (loss) $ — $ 2,098 $ — $ (4,419 ) $ (2,444 ) $ (4,765 ) Basis adjustments and other — 101 — (69 ) (81 ) (49 ) Equity in income (loss) of Real Estate Ventures $ — $ 2,199 $ — $ (4,488 ) $ (2,525 ) $ (4,814 ) Nine Months Ended September 30, 2018 DRA (G&I) Austin (a) Brandywine-AI Venture LLC evo at Cira Centre South (c) MAP Venture Other Total Revenue $ 42,492 $ 17,768 $ 995 $ 50,976 $ 13,708 $ 125,939 Operating expenses (18,245 ) (8,010 ) (250 ) (30,347 ) (5,145 ) (61,997 ) Interest expense, net (7,070 ) (2,606 ) (388 ) (10,426 ) (3,132 ) (23,622 ) Depreciation and amortization (15,622 ) (6,915 ) (376 ) (14,096 ) (4,430 ) (41,439 ) Loss on early extinguishment of debt — — (718 ) (334 ) — (1,052 ) Net income (loss) $ 1,555 $ 237 $ (737 ) $ (4,227 ) $ 1,001 $ (2,171 ) Ownership interest % 50 % 50 % 50 % 50 % (b) (b) Company's share of net income (loss) $ 778 $ 119 $ (369 ) $ (2,114 ) $ 168 $ (1,418 ) Basis adjustments and other 378 33 11 (39 ) (147 ) 236 Equity in income (loss) of Real Estate Ventures $ 1,156 $ 152 $ (358 ) $ (2,153 ) $ 21 $ (1,182 ) (a) On December 11, 2018, the Company acquired from DRA Advisors, an unaffiliated third party, DRA’s 50% ownership interest in the G&I Austin Office LLC real estate venture. The DRA Austin Venture owned twelve office properties containing an aggregate 1,570,123 square feet, located in Austin, Texas. As a result of the acquisition, the Company acquired complete ownership of the Austin properties. (b) The Company’s unconsolidated ownership interests ranged from 15% to 70% during the three and nine months ended September 30, 2019 and 25% to 70% during the three and nine months ended September 30, 2018 , subject to specified priority allocations of distributable cash in certain of the Real Estate Ventures. (c) The Company sold its 50% ownership interest in evo at Cira Centre South Venture during the first quarter of 2018 . |
Intangible Assets and Liabili_2
Intangible Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | As of September 30, 2019 and December 31, 2018 , the Company’s intangible assets/liabilities were comprised of the following (in thousands): September 30, 2019 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 168,881 $ (74,951 ) $ 93,930 Tenant relationship value 5,268 (4,728 ) 540 Above market leases acquired 4,955 (3,627 ) 1,328 Total intangible assets, net $ 179,104 $ (83,306 ) $ 95,798 Total Cost Accumulated Amortization Intangible Liabilities, net Acquired lease intangibles, net: Below market leases acquired $ 44,876 $ (20,826 ) $ 24,050 December 31, 2018 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 181,887 $ (53,376 ) $ 128,511 Tenant relationship value 9,564 (8,551 ) 1,013 Above market leases acquired 4,966 (3,142 ) 1,824 Total intangible assets, net $ 196,417 $ (65,069 ) $ 131,348 Total Cost Accumulated Amortization Intangible Liabilities, net Acquired lease intangibles, net: Below market leases acquired $ 49,655 $ (17,872 ) $ 31,783 |
Summary of Amortization for Intangible Assets and Liabilities | As of September 30, 2019 , the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands): Assets Liabilities 2019 (three months remaining) $ 10,057 $ 1,696 2020 28,185 5,299 2021 18,289 3,890 2022 12,153 2,270 2023 9,236 1,722 Thereafter 17,878 9,173 Total $ 95,798 $ 24,050 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Consolidated debt obligations | The following table sets forth information regarding the Company’s consolidated debt obligations outstanding at September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 December 31, 2018 Effective Interest Rate Maturity Date MORTGAGE DEBT: Two Logan Square $ 81,535 $ 82,805 3.98% May 2020 Four Tower Bridge 9,351 9,526 4.50% February 2021 One Commerce Square 117,486 120,183 3.64% April 2023 Two Commerce Square 108,991 110,518 4.51% April 2023 Principal balance outstanding 317,363 323,032 Plus: fair market value premium (discount), net (1,477 ) (1,759 ) Less: deferred financing costs (283 ) (404 ) Mortgage indebtedness $ 315,603 $ 320,869 UNSECURED DEBT $600 million Unsecured Credit Facility $ 146,500 $ 92,500 LIBOR + 1.10% July 2022 Seven-Year Term Loan - Swapped to fixed 250,000 250,000 2.87% October 2022 $350.0M 3.95% Guaranteed Notes due 2023 350,000 350,000 3.87% February 2023 $250.0M 4.10% Guaranteed Notes due 2024 250,000 250,000 4.33% October 2024 $450.0M 3.95% Guaranteed Notes due 2027 450,000 450,000 4.03% November 2027 $250.0M 4.55% Guaranteed Notes due 2029 250,000 250,000 4.60% October 2029 Indenture IA (Preferred Trust I) 27,062 27,062 LIBOR + 1.25% March 2035 Indenture IB (Preferred Trust I) - Swapped to fixed 25,774 25,774 3.30% April 2035 Indenture II (Preferred Trust II) - Swapped to fixed 25,774 25,774 3.09% July 2035 Principal balance outstanding 1,775,110 1,721,110 Plus: original issue premium (discount), net (3,852 ) (4,096 ) Less: deferred financing costs (8,606 ) (9,837 ) Total unsecured indebtedness $ 1,762,652 $ 1,707,177 Total Debt Obligations $ 2,078,255 $ 2,028,046 |
Schedule of maturities of long-term debt | As of September 30, 2019 , the Company’s aggregate scheduled principal payments of debt obligations are as follows (in thousands): 2019 (three months remaining) $ 1,926 2020 87,225 2021 15,143 2022 402,832 2023 556,737 Thereafter 1,028,610 Total principal payments 2,092,473 Net unamortized premiums/(discounts) (5,329 ) Net deferred financing costs (8,889 ) Outstanding indebtedness $ 2,078,255 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments With Fair Values Different From Their Carrying Amount | The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands): September 30, 2019 December 31, 2018 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,289,112 $ 1,366,900 $ 1,288,024 $ 1,262,570 Variable rate debt $ 473,540 $ 456,478 $ 419,153 $ 402,924 Mortgage notes payable $ 315,603 $ 320,761 $ 320,869 $ 318,515 Notes receivable $ 44,430 $ 40,844 $ 47,771 $ 47,747 (a) Amounts presented are net of deferred financing costs of $7.0 million and $7.9 million for unsecured notes payable, $1.6 million and $5.1 million for variable rate debt and $0.3 million and $0.4 million for mortgage notes payable as of September 30, 2019 and December 31, 2018 , respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of September 30, 2019 and December 31, 2018 . The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time, but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands and included in other assets and other liabilities on the Company’s consolidated balance sheets). Hedge Product Hedge Type Designation Notional Amount Strike Trade Date Maturity Date Fair value 9/30/2019 12/31/2018 9/30/2019 12/31/2018 Assets Swap Interest Rate Cash Flow (a) $ 25,774 $ 25,774 3.090 % January 6, 2012 October 30, 2019 $ 28 $ 183 Liabilities Swap Interest Rate Cash Flow (a) $ 250,000 $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ (1,586 ) $ 7,008 Swap Interest Rate Cash Flow (a) $ 25,774 $ 25,774 3.300 % December 22, 2011 January 30, 2021 (99 ) 292 $ 301,548 $ 301,548 (a) Hedging unsecured variable rate debt. |
Beneficiaries Equity of the P_2
Beneficiaries Equity of the Parent Company (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Earnings Per Share (EPS), Basic and Diluted | The following tables detail the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding): Three Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income (loss) $ 6,820 $ 6,820 $ (43,522 ) $ (43,522 ) Net (income) loss attributable to noncontrolling interests (48 ) (48 ) 342 342 Nonforfeitable dividends allocated to unvested restricted shareholders (93 ) (93 ) (80 ) (80 ) Net income (loss) attributable to common shareholders $ 6,679 $ 6,679 $ (43,260 ) $ (43,260 ) Denominator Weighted-average shares outstanding 176,195,244 176,195,244 178,602,622 178,602,622 Contingent securities/Share based compensation — 555,356 — — Weighted-average shares outstanding 176,195,244 176,750,600 178,602,622 178,602,622 Earnings (loss) per Common Share: Net income (loss) attributable to common shareholders $ 0.04 $ 0.04 $ (0.24 ) $ (0.24 ) Nine Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income $ 17,655 $ 17,655 $ 13,799 $ 13,799 Net income attributable to noncontrolling interests (155 ) (155 ) (162 ) (162 ) Nonforfeitable dividends allocated to unvested restricted shareholders (305 ) (305 ) (280 ) (280 ) Net income attributable to common shareholders $ 17,195 $ 17,195 $ 13,357 $ 13,357 Denominator Weighted-average shares outstanding 176,066,507 176,066,507 178,515,993 178,515,993 Contingent securities/Share based compensation — 551,219 — 1,236,551 Weighted-average shares outstanding 176,066,507 176,617,726 178,515,993 179,752,544 Earnings per Common Share: Net income attributable to common shareholders $ 0.10 $ 0.10 $ 0.07 $ 0.07 |
Partners Equity of the Operat_2
Partners Equity of the Operating Partnership (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share (EPS), Basic and Diluted | The following tables detail the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding): Three Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income (loss) $ 6,820 $ 6,820 $ (43,522 ) $ (43,522 ) Net (income) loss attributable to noncontrolling interests (48 ) (48 ) 342 342 Nonforfeitable dividends allocated to unvested restricted shareholders (93 ) (93 ) (80 ) (80 ) Net income (loss) attributable to common shareholders $ 6,679 $ 6,679 $ (43,260 ) $ (43,260 ) Denominator Weighted-average shares outstanding 176,195,244 176,195,244 178,602,622 178,602,622 Contingent securities/Share based compensation — 555,356 — — Weighted-average shares outstanding 176,195,244 176,750,600 178,602,622 178,602,622 Earnings (loss) per Common Share: Net income (loss) attributable to common shareholders $ 0.04 $ 0.04 $ (0.24 ) $ (0.24 ) Nine Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income $ 17,655 $ 17,655 $ 13,799 $ 13,799 Net income attributable to noncontrolling interests (155 ) (155 ) (162 ) (162 ) Nonforfeitable dividends allocated to unvested restricted shareholders (305 ) (305 ) (280 ) (280 ) Net income attributable to common shareholders $ 17,195 $ 17,195 $ 13,357 $ 13,357 Denominator Weighted-average shares outstanding 176,066,507 176,066,507 178,515,993 178,515,993 Contingent securities/Share based compensation — 551,219 — 1,236,551 Weighted-average shares outstanding 176,066,507 176,617,726 178,515,993 179,752,544 Earnings per Common Share: Net income attributable to common shareholders $ 0.10 $ 0.10 $ 0.07 $ 0.07 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |
Earnings Per Share (EPS), Basic and Diluted | The following tables detail the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding): Three Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income (loss) $ 6,820 $ 6,820 $ (43,522 ) $ (43,522 ) Net income attributable to noncontrolling interests (11 ) (11 ) (20 ) (20 ) Nonforfeitable dividends allocated to unvested restricted unitholders (93 ) (93 ) (80 ) (80 ) Net income (loss) attributable to common unitholders $ 6,716 $ 6,716 $ (43,622 ) $ (43,622 ) Denominator Weighted-average units outstanding 177,176,870 177,176,870 180,082,421 180,082,421 Contingent securities/Share based compensation — 555,356 — — Total weighted-average units outstanding 177,176,870 177,732,226 180,082,421 180,082,421 Earnings (loss) per Common Partnership Unit: Net income (loss) attributable to common unitholders 0.04 0.04 (0.24 ) (0.24 ) Nine Months Ended September 30, 2019 2018 Basic Diluted Basic Diluted Numerator Net income $ 17,655 $ 17,655 $ 13,799 $ 13,799 Net income attributable to noncontrolling interests (58 ) (58 ) (46 ) (46 ) Nonforfeitable dividends allocated to unvested restricted unitholders (305 ) (305 ) (280 ) (280 ) Net income attributable to common unitholders $ 17,292 $ 17,292 $ 13,473 $ 13,473 Denominator Weighted-average units outstanding 177,048,621 177,048,621 179,995,792 179,995,792 Contingent securities/Share based compensation — 551,219 — 1,236,551 Total weighted-average units outstanding 177,048,621 177,599,840 179,995,792 181,232,343 Earnings per Common Partnership Unit Net income attributable to common unitholders $ 0.10 $ 0.10 $ 0.07 $ 0.07 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Real Estate Investments, Net Operating Income and Unconsolidated Real Estate Ventures of Reportable Segments | The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands): Real estate investments, at cost: September 30, 2019 December 31, 2018 Philadelphia CBD $ 1,716,466 $ 1,670,388 Pennsylvania Suburbs 1,005,332 1,002,937 Austin, Texas 719,441 667,698 Metropolitan Washington, D.C. 467,117 524,190 Other 86,872 86,506 $ 3,995,228 $ 3,951,719 Right of use asset - operating leases, net (a) $ 21,828 $ — Corporate Construction-in-progress $ 151,232 $ 150,263 Land held for development (b) $ 92,189 $ 86,401 Prepaid leasehold interests in land held for development, net (c) $ 39,694 $ 39,999 (a) On January 1, 2019, as a result of the adoption of Topic 842, Leases, the Company recognized operating ground leases for which it is a lessee on its consolidated balance sheets. See Note 2, “ Basis of Presentation ,” for further information. (b) As of September 30, 2019 , the Company categorized 35.2 acres of land held for development, located in the Other segment, as held for sale in accordance with applicable accounting standards for long lived assets. As of December 31, 2018 , the Company categorized 37.9 acres of land held for development, comprised of 2.7 acres and 35.2 acres, located in the Pennsylvania Suburbs segment and Other segment, respectively, as held for sale in accordance with applicable accounting standards for long lived assets. See Note 3, “Real Estate Investments ,” for further information. (c) As of September 30, 2019 and December 31, 2018 , this caption comprised leasehold interests in prepaid 99 -year ground leases at 3025 and 3001-3003 JFK Boulevard, in Philadelphia, Pennsylvania. Net operating income (in thousands): Three Months Ended September 30, 2019 2018 Total revenue Operating expenses (a) Net operating income (loss) Total revenue Operating expenses (a) Net operating income (loss) Philadelphia CBD $ 66,105 $ (24,773 ) $ 41,332 $ 64,352 $ (24,427 ) $ 39,925 Pennsylvania Suburbs 34,818 (11,667 ) 23,151 34,745 (11,956 ) 22,789 Austin, Texas (b) 26,280 (9,302 ) 16,978 8,641 (3,894 ) 4,747 Metropolitan Washington, D.C. (c) 13,179 (5,999 ) 7,180 22,754 (8,548 ) 14,206 Other 3,706 (2,691 ) 1,015 3,707 (2,436 ) 1,271 Corporate 1,243 (1,642 ) (399 ) 799 (1,636 ) (837 ) Operating properties $ 145,331 $ (56,074 ) $ 89,257 $ 134,998 $ (52,897 ) $ 82,101 Nine Months Ended September 30, 2019 2018 Total revenue Operating expenses (a) Net operating income (loss) Total revenue Operating expenses (a) Net operating income (loss) Philadelphia CBD $ 196,859 $ (75,311 ) $ 121,548 $ 190,478 $ (73,559 ) 116,919 Pennsylvania Suburbs 104,744 (36,466 ) 68,278 103,960 (37,075 ) 66,885 Austin, Texas (b) 77,234 (28,182 ) 49,052 25,474 (10,812 ) 14,662 Metropolitan Washington, D.C. (c) 40,372 (18,542 ) 21,830 69,012 (25,699 ) 43,313 Other 10,352 (7,226 ) 3,126 13,187 (9,601 ) 3,586 Corporate 3,817 (4,969 ) (1,152 ) 3,031 (5,240 ) (2,209 ) Operating properties $ 433,378 $ (170,696 ) $ 262,682 $ 405,142 $ (161,986 ) $ 243,156 (a) Includes property operating expenses, real estate taxes and third party management expense. (b) On December 11, 2018, the Company acquired from DRA Advisors, an unaffiliated third party, DRA’s 50% ownership interest in the G&I Austin Office LLC real estate venture. The DRA Austin Venture owned twelve office properties containing an aggregate 1,570,123 square feet, located in Austin, Texas. As a result of the acquisition, the Company acquired complete ownership of the Austin properties. (c) On December 20, 2018, the Company contributed a portfolio of eight properties containing an aggregate of 1,293,197 square feet, located in its Metropolitan Washington, D.C. segment, known as the Rockpoint Portfolio, to the Herndon Innovation Center Venture. The Company and its partner own 15% and 85% interests in the Herndon Innovation Center Venture, respectively. Unconsolidated real estate ventures (in thousands): Investment in real estate ventures Equity in income (loss) of real estate venture As of Three Months Ended September 30, Nine Months Ended September 30, September 30, 2019 December 31, 2018 2019 2018 2019 2018 Philadelphia CBD $ 18,114 $ 19,897 $ 55 $ (36 ) $ 217 $ (183 ) Metropolitan Washington, D.C. (a) (b) 106,111 136,142 (528 ) (31 ) (963 ) (431 ) MAP Venture (c) 1,620 11,173 (1,602 ) (444 ) (4,414 ) (2,011 ) Other 1,914 1,888 110 89 346 287 Austin, Texas (d) — — — 423 — 1,156 Total $ 127,759 $ 169,100 $ (1,965 ) $ 1 $ (4,814 ) $ (1,182 ) (a) On December 20, 2018, the Company formed the Herndon Innovation Center Venture. See footnote (c) to the “Net operating income” table above for further information regarding this transaction. (b) On August 29, 2019, BDN – AI Venture transferred an office building to the lender in full satisfaction of the outstanding mortgage loan. Refer to Note 4, “Investment in Unconsolidated Real Estate Ventures” for further information. (c) Represents a joint venture formed on February 4, 2016 between the Company and MAP Ground Lease Holdings LLC, an affiliate of Och-Ziff Capital Management Group, LLC. The business operations, including properties in Richmond, Virginia; Metropolitan Washington, D.C.; New Jersey/Delaware and Pennsylvania Suburbs, are centrally managed with the results reported to management of the Company on a consolidated basis. As a result, the Company’s investment in MAP Venture is separately presented. All other unconsolidated real estate ventures are managed consistently with the Company’s regional segments. (d) On December 11, 2018, the Company acquired from DRA Advisors, an unaffiliated third party, DRA’s 50% ownership interest in the G&I Austin Office LLC real estate venture. The DRA Austin Venture owned twelve office properties containing an aggregate 1,570,123 square feet, located in Austin, Texas. As a result of the acquisition, the Company acquired complete ownership of the Austin properties. |
Reconciliation of Consolidated Net Income to Consolidated NOI | The following is a reconciliation of consolidated net income, as defined by GAAP, to consolidated NOI, (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 6,820 $ (43,522 ) $ 17,655 $ 13,799 Plus: Interest expense 20,400 19,257 61,273 58,091 Interest expense - amortization of deferred financing costs 694 618 2,026 1,872 Depreciation and amortization 55,627 44,141 158,738 131,631 General and administrative expenses 6,974 5,963 25,217 22,209 Equity in loss (income) of Real Estate Ventures 1,965 (1 ) 4,814 1,182 Provision for impairment — 56,865 — 56,865 Less: Interest income 558 1,220 1,636 2,564 Income tax provision — — (46 ) (158 ) Net gain (loss) on disposition of real estate 356 — 356 (35 ) Net gain on sale of undepreciated real estate 250 — 1,501 2,859 Net gain on real estate venture transactions 2,059 — 3,594 37,263 Consolidated net operating income $ 89,257 $ 82,101 $ 262,682 $ 243,156 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease liabilities maturity schedule | Lease payments on non-cancelable leases at September 30, 2019 , which, where applicable, considered CPI index rates upon adoption of Topic 842, are as follows (in thousands): Year Minimum Rent 2019 (three months remaining) $ 303 2020 1,217 2021 1,232 2022 1,248 2023 1,263 Thereafter 111,757 Total lease payments $ 117,020 Less: Imputed interest (94,517 ) Present value of operating lease liabilities $ 22,503 |
Future minimum renal payments under prior guidance | Lease payments on non-cancelable leases at December 31, 2018 , which were determined under ASC 840 and are therefore not adjusted for increases based on CPI, are as follows (in thousands): Year Minimum Rent 2019 $ 1,222 2020 1,222 2021 1,222 2022 1,222 2023 1,222 Thereafter 55,689 Total $ 61,799 |
Organization of The Parent Co_3
Organization of The Parent Company and The Operating Partnership (Textual) (Details) | 9 Months Ended |
Sep. 30, 2019aft²parcelproperty | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of properties | property | 95 |
Net rentable area (in square feet) | 16,711,387 |
Unconsolidated Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of properties | property | 10 |
Parent Company | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Areas of land held for development (in acres) | a | 234.7 |
Area of land held for sale (in acres) | a | 35.2 |
Area of additional undeveloped parcels of land with option to purchase (in acres) | a | 55.5 |
Total potential development capacity (in square feet) | 14,200,000 |
Parent Company | Land Parcel One | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term | 99 years |
Parent Company | Land Parcel Two | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term | 99 years |
Parent Company | Assets Held-for-sale | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Total potential development capacity (in square feet) | 200,000 |
Parent Company | Leashold Interest Land | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Areas of land held for development (in acres) | a | 1.8 |
Number of parcels of land | parcel | 2 |
Wholly-owned Management Company Subsidiaries | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Net rentable area (in square feet) | 24,600,000 |
Wholly-owned Management Company Subsidiaries | Wholly Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Net rentable area (in square feet) | 16,700,000 |
Wholly-owned Management Company Subsidiaries | Partially Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Net rentable area (in square feet) | 7,900,000 |
Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 99.40% |
Organization of The Parent Co_4
Organization of The Parent Company and The Operating Partnership - Summary of Core Portfolio of Operating Properties and Excludes Development, Redevelopment and Held for Sale (Details) | Sep. 30, 2019ft²property |
Real Estate Properties [Line Items] | |
Number of properties | property | 95 |
Net rentable area (in square feet) | ft² | 16,711,387 |
Office properties | |
Real Estate Properties [Line Items] | |
Number of properties | property | 87 |
Net rentable area (in square feet) | ft² | 15,509,004 |
Mixed-use properties | |
Real Estate Properties [Line Items] | |
Number of properties | property | 3 |
Net rentable area (in square feet) | ft² | 641,741 |
Retail property | |
Real Estate Properties [Line Items] | |
Number of properties | property | 1 |
Net rentable area (in square feet) | ft² | 17,884 |
Core Properties | |
Real Estate Properties [Line Items] | |
Number of properties | property | 91 |
Net rentable area (in square feet) | ft² | 16,168,629 |
Development property | |
Real Estate Properties [Line Items] | |
Number of properties | property | 1 |
Net rentable area (in square feet) | ft² | 204,108 |
Redevelopment properties | |
Real Estate Properties [Line Items] | |
Number of properties | property | 3 |
Net rentable area (in square feet) | ft² | 338,650 |
Basis of Presentation (Textual)
Basis of Presentation (Textual) (Details) $ / shares in Units, $ in Thousands | Mar. 15, 2019USD ($) | Jan. 01, 2019USD ($) | Jan. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($)$ / shares | Sep. 30, 2019USD ($)leaseacquisition$ / shares | Sep. 30, 2018USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 15, 2017USD ($)ft² |
Basis Of Presentation [Line Items] | ||||||||||
Number of acquisitions for which adjustments have been made to correct errors related to of purchase price allocation | acquisition | 2 | |||||||||
Net income attributable to Brandywine Realty Trust | $ 6,772 | $ (43,180) | $ 17,500 | $ 13,637 | ||||||
Cumulative effect of accounting change | $ 5,336 | |||||||||
Number of long-term ground leases | lease | 6 | |||||||||
Right of use asset - operating leases | 22,400 | 21,828 | $ 21,828 | $ 0 | ||||||
Lease liability - operating leases | $ 22,400 | $ 22,503 | 22,503 | $ 0 | ||||||
Proceeds from the sale of properties | $ 41,546 | 16,771 | ||||||||
Philadelphia Marine Center (Marine Piers) | ||||||||||
Basis Of Presentation [Line Items] | ||||||||||
Rentable area (in square feet) | ft² | 181,900 | |||||||||
Total sale price for property sold | $ 21,400 | |||||||||
Initial cash consideration for property sold | 12,000 | |||||||||
Proceeds from the sale of properties | $ 11,200 | |||||||||
Unrecorded gain receivable on property sold | $ 9,400 | $ 9,400 | ||||||||
Uncollectible Leases | ||||||||||
Basis Of Presentation [Line Items] | ||||||||||
Cumulative effect of accounting change | $ 700 | |||||||||
Error Corrections and Prior Period Adjustments | ||||||||||
Basis Of Presentation [Line Items] | ||||||||||
Net income attributable to Brandywine Realty Trust | $ (300) | $ (800) | ||||||||
Net income per share amount (in dollars per share) | $ / shares | $ 0 | $ (0.01) |
Basis of Presentation - Balance
Basis of Presentation - Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Building and improvements | $ 3,995,228 | $ 3,951,719 | ||||||
Accumulated depreciation | (944,994) | (885,407) | ||||||
Operating real estate investments, net | 3,072,062 | 3,066,312 | ||||||
Total assets | 4,020,432 | 4,076,976 | ||||||
Additional Paid-in Capital | 3,189,350 | 3,200,312 | ||||||
Cumulative Earnings | 787,789 | 775,625 | ||||||
Total Brandywine Realty Trust's equity | 1,690,742 | 1,798,827 | ||||||
Noncontrolling interests | 11,695 | 12,201 | ||||||
Total beneficiaries' equity | 1,702,437 | $ 1,729,665 | $ 1,760,463 | 1,811,028 | $ 1,756,294 | $ 1,830,525 | $ 1,847,251 | $ 1,826,870 |
Total liabilities and beneficiaries' equity | $ 4,020,432 | 4,076,976 | ||||||
Total Brandywine Operating Partnership, L.P.'s equity | 1,796,316 | |||||||
Total partners' equity | 1,798,508 | |||||||
As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Building and improvements | 3,953,319 | |||||||
Accumulated depreciation | (865,462) | |||||||
Operating real estate investments, net | 3,087,857 | |||||||
Total assets | 4,098,521 | |||||||
Additional Paid-in Capital | 3,200,850 | |||||||
Cumulative Earnings | 796,513 | |||||||
Total Brandywine Realty Trust's equity | 1,820,253 | |||||||
Noncontrolling interests | 12,320 | |||||||
Total beneficiaries' equity | 1,832,573 | |||||||
Total liabilities and beneficiaries' equity | 4,098,521 | |||||||
Total Brandywine Operating Partnership, L.P.'s equity | 1,817,861 | |||||||
Total partners' equity | 1,820,053 | |||||||
Adjustments | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Building and improvements | (1,600) | |||||||
Accumulated depreciation | (19,945) | |||||||
Operating real estate investments, net | (21,545) | |||||||
Total assets | (21,545) | |||||||
Additional Paid-in Capital | (538) | |||||||
Cumulative Earnings | (20,888) | |||||||
Total Brandywine Realty Trust's equity | (21,426) | |||||||
Noncontrolling interests | (119) | |||||||
Total beneficiaries' equity | (21,545) | |||||||
Total liabilities and beneficiaries' equity | (21,545) | |||||||
Total Brandywine Operating Partnership, L.P.'s equity | (21,545) | |||||||
Total partners' equity | (21,545) | |||||||
General Partner Capital | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
General Partnership Capital | 1,791,591 | |||||||
Total partners' equity | 1,791,591 | |||||||
General Partner Capital | As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
General Partnership Capital | 1,813,136 | |||||||
Total partners' equity | 1,813,136 | |||||||
General Partner Capital | Adjustments | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
General Partnership Capital | $ (21,545) |
Basis of Presentation - Stateme
Basis of Presentation - Statement of Beneficiaries' Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | $ 1,702,437 | $ 1,729,665 | $ 1,760,463 | $ 1,811,028 | $ 1,756,294 | $ 1,830,525 | $ 1,847,251 | $ 1,826,870 |
Additional Paid-in Capital | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | 3,189,350 | 3,188,239 | 3,186,774 | 3,200,312 | 3,223,318 | 3,222,585 | 3,221,560 | 3,218,077 |
Cumulative Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | 787,789 | 781,017 | 774,812 | 775,625 | 654,744 | 697,916 | 685,166 | 641,093 |
Noncontrolling Interests | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | $ 11,695 | $ 11,846 | 12,025 | 12,201 | 16,669 | 17,246 | 17,375 | 17,258 |
As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | 1,832,573 | |||||||
As Previously Reported | Additional Paid-in Capital | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | 3,187,312 | 3,200,850 | 3,223,817 | 3,223,072 | 3,222,047 | 3,218,564 | ||
As Previously Reported | Cumulative Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | 795,186 | 796,513 | 674,599 | 717,515 | 704,506 | 660,174 | ||
As Previously Reported | Noncontrolling Interests | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | 12,142 | 12,320 | 16,824 | 17,410 | 17,538 | 17,420 | ||
Adjustments | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | (21,545) | |||||||
Adjustments | Additional Paid-in Capital | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | (538) | (538) | (499) | (487) | (487) | (487) | ||
Adjustments | Cumulative Earnings | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | (20,374) | (20,888) | (19,855) | (19,599) | (19,340) | (19,081) | ||
Adjustments | Noncontrolling Interests | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Stockholders' equity | $ (117) | $ (119) | $ (155) | $ (164) | $ (163) | $ (162) |
Basis of Presentation - State_2
Basis of Presentation - Statement of Partners' Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | $ 1,798,508 | |||||||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | $ 1,687,709 | $ 1,715,445 | $ 1,745,042 | 1,798,508 | $ 1,733,055 | $ 1,805,756 | $ 1,824,205 | $ 1,799,955 |
General Partner Capital | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | 1,791,591 | |||||||
General Partner Capital | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | $ 1,689,334 | $ 1,715,685 | 1,740,552 | 1,791,591 | 1,720,870 | 1,794,623 | 1,814,960 | 1,795,684 |
As Previously Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | 1,820,053 | |||||||
As Previously Reported | General Partner Capital | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | 1,813,136 | |||||||
As Previously Reported | General Partner Capital | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | 1,761,580 | 1,741,379 | 1,814,870 | 1,834,947 | 1,815,411 | |||
Adjustments | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | (21,545) | |||||||
Adjustments | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | $ (21,545) | |||||||
Adjustments | General Partner Capital | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Partners' equity | $ (21,028) | $ (20,509) | $ (20,247) | $ (19,987) | $ (19,727) |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Lease Payments on Non-Cancellable Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Accounting Policies [Abstract] | |
2019 (three months remaining) | $ 97,250 |
2020 | 386,991 |
2021 | 364,435 |
2022 | 324,296 |
2023 | 296,890 |
Thereafter | 1,413,756 |
Total | $ 2,883,618 |
Basis of Presentation - Sched_2
Basis of Presentation - Schedule of Lease Payments on Non-Cancellable Leases Under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Accounting Policies [Abstract] | |
2019 | $ 392,058 |
2020 | 372,619 |
2021 | 349,160 |
2022 | 304,445 |
2023 | 277,388 |
Thereafter | 1,265,810 |
Total | $ 2,961,480 |
Basis of Presentation - Sched_3
Basis of Presentation - Schedule of Allocation of Lease Revenue Recognized Between Fixed Contractual Payments and Variable Lease Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lease Revenue | ||||
Fixed contractual payments | $ 110,535 | $ 327,252 | ||
Variable lease payments | 28,693 | 87,861 | ||
Total | $ 139,228 | $ 128,635 | $ 415,113 | $ 382,321 |
Basis of Presentation - Summary
Basis of Presentation - Summary of Operating Lease Cost Recognized Through Property Operating Expenses (Details) - Property Operating Expenses $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease Cost | ||
Fixed lease cost | $ 525 | $ 1,575 |
Variable lease cost | 13 | 41 |
Total | $ 538 | $ 1,616 |
Weighted-average remaining lease term (years) | 52 years 10 months 24 days | 52 years 10 months 24 days |
Weighted-average discount rate | 6.30% | 6.30% |
Real Estate Investments - Gross
Real Estate Investments - Gross Carrying Value of Operating Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Real Estate [Line Items] | ||
Building and improvements | $ 3,995,228 | $ 3,951,719 |
Total | 3,995,228 | 3,951,719 |
Land | ||
Real Estate [Line Items] | ||
Land | 489,744 | 487,301 |
Building and Building Improvements | ||
Real Estate [Line Items] | ||
Building and improvements | 3,049,606 | 3,048,889 |
Tenant Improvements | ||
Real Estate [Line Items] | ||
Tenant improvements | $ 455,878 | $ 415,529 |
Real Estate Investments - Summa
Real Estate Investments - Summary of Land Parcels Sold (Details) $ in Thousands | Mar. 15, 2019USD ($)aparcel | Jan. 08, 2015USD ($)aparcel | Jan. 31, 2019USD ($)installment | Sep. 30, 2019USD ($)a | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)aparcel | Sep. 30, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from the sale of properties | $ 41,546 | $ 16,771 | |||||
Gain (loss) on sale | $ 250 | $ 0 | $ 1,501 | $ 2,859 | |||
Land | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of parcels of land | parcel | 1 | ||||||
Area of land (in acres) | a | 2.7 | 2.7 | |||||
Sales price | $ 5,325 | $ 5,325 | |||||
Proceeds from the sale of properties | 5,023 | ||||||
Gain (loss) on sale | 1,501 | ||||||
Land | 9 Presidential Boulevard | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of parcels of land | parcel | 1 | ||||||
Area of land (in acres) | a | 2.7 | ||||||
Sales price | $ 5,325 | ||||||
Proceeds from the sale of properties | 5,023 | ||||||
Gain (loss) on sale | $ 751 | ||||||
Land | Libertyview | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of parcels of land | parcel | 0 | ||||||
Area of land (in acres) | a | 0 | ||||||
Sales price | $ 0 | ||||||
Proceeds from the sale of properties | 0 | $ 800 | |||||
Gain (loss) on sale | $ 750 | ||||||
Contingent consideration to received | $ 1,000 | ||||||
Number of installments | installment | 12 |
Real Estate Investments (Textua
Real Estate Investments (Textual) (Details) $ in Thousands | Sep. 11, 2019USD ($)ft² | Sep. 30, 2019USD ($)a | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)aparcel | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on sale | $ 250 | $ 0 | $ 1,501 | $ 2,859 | ||
Additional gain on prior disposal | 700 | |||||
Assets held for sale, net | 7,349 | 7,349 | $ 11,599 | |||
Assets Held-for-sale | Land Held For Development | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Assets held for sale, net | $ 7,300 | $ 7,300 | ||||
Assets Held-for-sale | Other | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of parcels of land | parcel | 2 | |||||
Area of land (in acres) | a | 35.2 | 35.2 | ||||
Land | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Sales price | $ 5,325 | $ 5,325 | ||||
Gain (loss) on sale | $ 1,501 | |||||
Number of parcels of land | parcel | 1 | |||||
Area of land (in acres) | a | 2.7 | 2.7 | ||||
Land | 1900 Gallows Rd. | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Rentable area (in square feet) | ft² | 210,632 | |||||
Sales price | $ 36,400 | |||||
Gain (loss) on sale | $ (400) |
Investment in Unconsolidated _3
Investment in Unconsolidated Real Estate Ventures (Textual) (Details) | Apr. 12, 2019USD ($) | Apr. 01, 2019USD ($) | Mar. 29, 2019USD ($)property | Jan. 01, 2019USD ($) | Sep. 30, 2019USD ($)aft²apartmentinvestment | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)aft²parcelapartmentinvestment | Sep. 30, 2018USD ($) | Aug. 29, 2019USD ($)ft² | Apr. 11, 2019USD ($) | Dec. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Accounts receivable | $ 13,872,000 | $ 13,872,000 | $ 16,394,000 | ||||||||
Cumulative effect of accounting change | $ (5,336,000) | ||||||||||
Minimum | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 15.00% | 15.00% | |||||||||
Maximum | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 70.00% | 70.00% | |||||||||
Real Estate Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Accounts receivable | $ 800,000 | $ 800,000 | $ 800,000 | ||||||||
Real Estate Venture | Management Fees | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Service and other revenue | 1,000,000 | $ 1,400,000 | 3,200,000 | $ 4,000,000 | |||||||
Real Estate Venture | Leasing Commission Income | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Service and other revenue | 300,000 | 1,500,000 | 800,000 | 4,400,000 | |||||||
Unconsolidated Real Estate Ventures | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Investment in Real Estate Ventures, equity method | 127,800,000 | 127,800,000 | |||||||||
Gain on early extinguishment of debt | 4,371,000 | $ (334,000) | 4,371,000 | $ (1,052,000) | |||||||
Real estate ventures aggregate indebtedness | $ 592,400,000 | $ 592,400,000 | |||||||||
Unconsolidated Real Estate Ventures | Minimum | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 15.00% | 25.00% | 15.00% | 25.00% | |||||||
Unconsolidated Real Estate Ventures | Maximum | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 70.00% | 70.00% | 70.00% | 70.00% | |||||||
Unconsolidated Real Estate Ventures | Six Real Estate Ventures | Office properties | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of unconsolidated investments in Real Estate Ventures | investment | 6 | 6 | |||||||||
Rentable area (in square feet) | ft² | 5,600,000 | 5,600,000 | |||||||||
Unconsolidated Real Estate Ventures | Two Real Estate Ventures | Land Held For Development | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of unconsolidated investments in Real Estate Ventures | investment | 2 | 2 | |||||||||
Area of land (in acres) | a | 1.4 | 1.4 | |||||||||
Unconsolidated Real Estate Ventures | One Real Estate Venture | Land Under Active Development | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of unconsolidated investments in Real Estate Ventures | investment | 1 | 1 | |||||||||
Area of land (in acres) | a | 1.3 | 1.3 | |||||||||
Unconsolidated Real Estate Ventures | One Other Real Estate Venture | Residential Tower | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of unconsolidated investments in Real Estate Ventures | investment | 1 | 1 | |||||||||
Number of Property units | apartment | 321 | 321 | |||||||||
Falls Church, Virginia | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Rentable area (in square feet) | ft² | 180,659 | ||||||||||
Mortgage loan on real estate | $ 26,000,000 | ||||||||||
Gain on early extinguishment of debt | $ 2,200,000 | ||||||||||
MAP Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | |||||||
Gain on early extinguishment of debt | $ 0 | $ (334,000) | $ 0 | $ (334,000) | |||||||
Number of lessee land parcels | parcel | 58 | ||||||||||
Lessee under ground lease term | 99 years | ||||||||||
Cumulative effect of accounting change | $ 9,200,000 | $ 4,600,000 | |||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership percentage | 15.00% | ||||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | Secured Debt | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Indebtedness to third parties, refinanced amount | $ 134,100,000 | ||||||||||
Number of properties used to secure debt | property | 4 | ||||||||||
Debt instrument, initial advance | $ 111,000,000 | $ 113,100,000 | |||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | Secured Debt | Distributions from Loan 1 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Debt instrument, initial advance | $ 16,700,000 | ||||||||||
Spread on variable rate | 1.95% | ||||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | Secured Debt | Distributions from Loan 2 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Indebtedness to third parties, refinanced amount | $ 115,300,000 | ||||||||||
Debt instrument, initial advance | $ 13,800,000 | ||||||||||
Spread on variable rate | 1.80% | ||||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | Minimum | Secured Debt | Distributions from Loan 1 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Effective interest rate | 5.45% | 5.45% | |||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | Maximum | Secured Debt | Distributions from Loan 1 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Effective interest rate | 6.45% | 6.45% | |||||||||
Herndon Innovation Center Metro Portfolio Venture, LLC | Maximum | Secured Debt | Distributions from Loan 2 | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Debt instrument, interest rate, stated percentage | 6.30% | 6.30% | |||||||||
PJP VII | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Construction loan, principal amount | $ 3,700,000 | $ 3,700,000 | |||||||||
Guarantees, maximum exposure amount | 300,000 | 300,000 | |||||||||
4040 Wilson Venture | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Indebtedness to third parties, refinanced amount | 150,000,000 | 150,000,000 | |||||||||
Guarantees, maximum exposure amount | $ 41,300,000 | $ 41,300,000 |
Investment in Unconsolidated _4
Investment in Unconsolidated Real Estate Ventures - Summary of Financial Position of Real Estate Ventures (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | |||
Net property | $ 841,743 | $ 835,983 | |
Other assets | 351,364 | 159,499 | |
Other liabilities | 289,952 | 85,681 | |
Debt, net | 581,024 | 365,707 | |
Equity | 322,131 | 544,094 | |
Right of use asset - operating leases, net | 21,828 | $ 22,400 | 0 |
Lease liability - operating leases | $ 22,503 | 22,400 | $ 0 |
MAP Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Right of use asset - operating leases, net | 197,100 | ||
Lease liability - operating leases | $ 206,400 |
Investment in Unconsolidated _5
Investment in Unconsolidated Real Estate Ventures - Summary of Results of Operations of Real Estate Ventures with Interests (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($)ft²property | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)ft²property | Sep. 30, 2018USD ($) | Dec. 11, 2018ft²property | Mar. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity in income (loss) of Real Estate Ventures | $ (1,965) | $ 1 | $ (4,814) | $ (1,182) | ||
Number of properties | property | 95 | 95 | ||||
Net rentable area (in square feet) | ft² | 16,711,387 | 16,711,387 | ||||
DRA (G&I) Austin | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | $ 0 | 14,232 | $ 0 | 42,492 | ||
Operating expenses | 0 | (6,428) | 0 | (18,245) | ||
Interest expense, net | 0 | (2,549) | 0 | (7,070) | ||
Depreciation and amortization | 0 | (4,896) | 0 | (15,622) | ||
(Gain) loss on early extinguishment of debt | 0 | 0 | 0 | 0 | ||
Net income (loss) | $ 0 | $ 359 | $ 0 | $ 1,555 | ||
Ownership interest % | 0.00% | 50.00% | 0.00% | 50.00% | 50.00% | |
Company's share of net income (loss) | $ 0 | $ 180 | $ 0 | $ 778 | ||
Basis adjustments and other | 0 | 243 | 0 | 378 | ||
Equity in income (loss) of Real Estate Ventures | 0 | 423 | 0 | 1,156 | ||
Number of properties | property | 12 | |||||
Net rentable area (in square feet) | ft² | 1,570,123 | |||||
Brandywine-AI Ventures LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | 1,360 | 5,962 | 5,050 | 17,768 | ||
Operating expenses | (871) | (2,589) | (2,473) | (8,010) | ||
Interest expense, net | (222) | (873) | (698) | (2,606) | ||
Depreciation and amortization | (540) | (2,232) | (2,055) | (6,915) | ||
(Gain) loss on early extinguishment of debt | 4,371 | 0 | 4,371 | 0 | ||
Net income (loss) | $ 4,098 | $ 268 | $ 4,195 | $ 237 | ||
Ownership interest % | 50.00% | 50.00% | 50.00% | 50.00% | ||
Company's share of net income (loss) | $ 2,049 | $ 134 | $ 2,098 | $ 119 | ||
Basis adjustments and other | 31 | 31 | 101 | 33 | ||
Equity in income (loss) of Real Estate Ventures | $ 2,080 | $ 165 | 2,199 | 152 | ||
Evo At Cira Centre South Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | 0 | 995 | ||||
Operating expenses | 0 | (250) | ||||
Interest expense, net | 0 | (388) | ||||
Depreciation and amortization | 0 | (376) | ||||
(Gain) loss on early extinguishment of debt | 0 | (718) | ||||
Net income (loss) | $ 0 | $ (737) | ||||
Ownership interest % | 0.00% | 50.00% | 0.00% | 50.00% | 50.00% | |
Company's share of net income (loss) | $ 0 | $ (369) | ||||
Basis adjustments and other | 0 | 11 | ||||
Equity in income (loss) of Real Estate Ventures | 0 | (358) | ||||
MAP Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | $ 17,476 | $ 17,243 | 53,560 | 50,976 | ||
Operating expenses | (11,981) | (10,219) | (35,747) | (30,347) | ||
Interest expense, net | (2,436) | (2,894) | (7,504) | (10,426) | ||
Depreciation and amortization | (6,247) | (4,654) | (19,146) | (14,096) | ||
(Gain) loss on early extinguishment of debt | 0 | (334) | 0 | (334) | ||
Net income (loss) | $ (3,188) | $ (858) | $ (8,837) | $ (4,227) | ||
Ownership interest % | 50.00% | 50.00% | 50.00% | 50.00% | ||
Company's share of net income (loss) | $ (1,594) | $ (429) | $ (4,419) | $ (2,114) | ||
Basis adjustments and other | (28) | (15) | (69) | (39) | ||
Equity in income (loss) of Real Estate Ventures | (1,622) | (444) | (4,488) | (2,153) | ||
Other | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | 13,890 | 4,580 | 42,538 | 13,708 | ||
Operating expenses | (5,017) | (1,904) | (15,736) | (5,145) | ||
Interest expense, net | (3,522) | (1,228) | (8,219) | (3,132) | ||
Depreciation and amortization | (6,307) | (1,481) | (19,078) | (4,430) | ||
(Gain) loss on early extinguishment of debt | 0 | 0 | 0 | 0 | ||
Net income (loss) | (956) | (33) | (495) | 1,001 | ||
Company's share of net income (loss) | (2,400) | (121) | (2,444) | 168 | ||
Basis adjustments and other | (23) | (22) | (81) | (147) | ||
Equity in income (loss) of Real Estate Ventures | (2,423) | 144 | (2,525) | 21 | ||
Unconsolidated Real Estate Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | 32,726 | 42,017 | 101,148 | 125,939 | ||
Operating expenses | (17,869) | (21,140) | (53,956) | (61,997) | ||
Interest expense, net | (6,180) | (7,544) | (16,421) | (23,622) | ||
Depreciation and amortization | (13,094) | (13,263) | (40,279) | (41,439) | ||
(Gain) loss on early extinguishment of debt | 4,371 | (334) | 4,371 | (1,052) | ||
Net income (loss) | (46) | (264) | (5,137) | (2,171) | ||
Company's share of net income (loss) | (1,945) | (236) | (4,765) | (1,418) | ||
Basis adjustments and other | (20) | 237 | (49) | 236 | ||
Equity in income (loss) of Real Estate Ventures | $ (1,965) | $ 1 | $ (4,814) | $ (1,182) | ||
Minimum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest % | 15.00% | 15.00% | ||||
Minimum | Unconsolidated Real Estate Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest % | 15.00% | 25.00% | 15.00% | 25.00% | ||
Maximum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest % | 70.00% | 70.00% | ||||
Maximum | Unconsolidated Real Estate Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest % | 70.00% | 70.00% | 70.00% | 70.00% |
Intangible Assets and Liabili_3
Intangible Assets and Liabilities - Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Intangible Assets [Line Items] | ||
Intangible assets, total cost | $ 179,104 | $ 196,417 |
Intangible assets, accumulated amortization | (83,306) | (65,069) |
Intangible assets, net | 95,798 | 131,348 |
Acquired lease intangibles, net | 24,050 | 31,783 |
In-place lease value | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 168,881 | 181,887 |
Intangible assets, accumulated amortization | (74,951) | (53,376) |
Intangible assets, net | 93,930 | 128,511 |
Tenant relationship value | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 5,268 | 9,564 |
Intangible assets, accumulated amortization | (4,728) | (8,551) |
Intangible assets, net | 540 | 1,013 |
Above market leases acquired | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 4,955 | 4,966 |
Intangible assets, accumulated amortization | (3,627) | (3,142) |
Intangible assets, net | 1,328 | 1,824 |
Below market leases acquired | ||
Intangible Assets [Line Items] | ||
Acquired lease intangibles, gross | 44,876 | 49,655 |
Acquired lease intangibles, accumulated amortization | (20,826) | (17,872) |
Acquired lease intangibles, net | $ 24,050 | $ 31,783 |
Intangible Assets and Liabili_4
Intangible Assets and Liabilities - Annual Amortization of Intangible Assets, Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
2019 (three months remaining) | $ 10,057 | |
2020 | 28,185 | |
2021 | 18,289 | |
2022 | 12,153 | |
2023 | 9,236 | |
Thereafter | 17,878 | |
Intangible assets, net | 95,798 | $ 131,348 |
Liabilities | ||
2019 (three months remaining) | 1,696 | |
2020 | 5,299 | |
2021 | 3,890 | |
2022 | 2,270 | |
2023 | 1,722 | |
Thereafter | 9,173 | |
Acquired lease intangibles, net | $ 24,050 | $ 31,783 |
Debt Obligations - Consolidated
Debt Obligations - Consolidated Debt Obligations Outstanding (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Consolidated debt obligations | ||
Plus: premiums/(discounts), net | $ (5,329) | |
Less: deferred financing costs | (8,889) | |
Outstanding indebtedness | 2,078,255 | $ 2,028,046 |
Secured Debt | ||
Consolidated debt obligations | ||
Long-term debt, gross | 317,363 | 323,032 |
Plus: premiums/(discounts), net | (1,477) | (1,759) |
Less: deferred financing costs | (283) | (404) |
Total mortgage indebtedness | 315,603 | 320,869 |
Unsecured Debt | ||
Consolidated debt obligations | ||
Long-term debt, gross | 1,775,110 | 1,721,110 |
Plus: premiums/(discounts), net | (3,852) | (4,096) |
Less: deferred financing costs | (8,606) | (9,837) |
Total unsecured indebtedness | 1,762,652 | 1,707,177 |
Unsecured Debt | $600 million Unsecured Credit Facility | ||
Consolidated debt obligations | ||
Long-term debt, gross | 146,500 | 92,500 |
Unsecured Debt | Seven-Year Term Loan - Swapped to fixed | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 250,000 | 250,000 |
Effective interest rate | 2.87% | |
Unsecured Debt | $350.0M 3.95% Guaranteed Notes due 2023 | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 350,000 | 350,000 |
Effective interest rate | 3.87% | |
Unsecured Debt | $250.0M 4.10% Guaranteed Notes due 2024 | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 250,000 | 250,000 |
Effective interest rate | 4.33% | |
Unsecured Debt | $450.0M 3.95% Guaranteed Notes due 2027 | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 450,000 | 450,000 |
Effective interest rate | 4.03% | |
Unsecured Debt | $250.0M 4.55% Guaranteed Notes due 2029 | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 250,000 | 250,000 |
Effective interest rate | 4.60% | |
Unsecured Debt | Indenture IA (Preferred Trust I) | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 27,062 | 27,062 |
Unsecured Debt | Indenture IB (Preferred Trust I) - Swapped to fixed | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 25,774 | 25,774 |
Effective interest rate | 3.30% | |
Unsecured Debt | Indenture II (Preferred Trust II) - Swapped to fixed | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 25,774 | 25,774 |
Effective interest rate | 3.09% | |
LIBOR | Unsecured Debt | $600 million Unsecured Credit Facility | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.10% | |
LIBOR | Unsecured Debt | Indenture IA (Preferred Trust I) | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.25% | |
Two Logan Square | Secured Debt | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 81,535 | 82,805 |
Effective interest rate | 3.98% | |
Four Tower Bridge | Secured Debt | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 9,351 | 9,526 |
Effective interest rate | 4.50% | |
One Commerce Square | Secured Debt | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 117,486 | 120,183 |
Effective interest rate | 3.64% | |
Two Commerce Square | Secured Debt | ||
Consolidated debt obligations | ||
Long-term debt, gross | $ 108,991 | $ 110,518 |
Effective interest rate | 4.51% |
Debt Obligations (Textual) (Det
Debt Obligations (Textual) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 3.50% | |
Maximum borrowing capacity | $ 600,000,000 | |
Interest expense | $ 4,200,000 | |
Effective interest rate on credit facility | 3.20% | |
LIBOR | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 1.10% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.05% | 4.05% |
Debt Obligations - Aggregate Sc
Debt Obligations - Aggregate Scheduled Principal Payments of Debt Obligation, Excluding Amortization of Discounts and Premiums (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2019 (three months remaining) | $ 1,926 | |
2020 | 87,225 | |
2021 | 15,143 | |
2022 | 402,832 | |
2023 | 556,737 | |
Thereafter | 1,028,610 | |
Total principal payments | 2,092,473 | |
Net unamortized premiums/(discounts) | (5,329) | |
Net deferred financing costs | (8,889) | |
Outstanding indebtedness | $ 2,078,255 | $ 2,028,046 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Instruments for which Estimates of Fair Value Differ from Carrying Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable | $ 315,603 | $ 320,869 |
Deferred financing costs, net | 8,889 | |
Unsecured Notes Payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred financing costs, net | 8,606 | 9,837 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 44,430 | 47,771 |
Carrying Amount | Unsecured Notes Payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured notes payable | 1,289,112 | 1,288,024 |
Deferred financing costs, net | 7,000 | 7,900 |
Carrying Amount | Variable Rate Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate debt | 473,540 | 419,153 |
Deferred financing costs, net | 1,600 | 5,100 |
Carrying Amount | Mortgages Notes Payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Mortgage notes payable | 315,603 | 320,869 |
Deferred financing costs, net | 300 | 400 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note receivable, fair value | 40,844 | 47,747 |
Fair Value | Unsecured Notes Payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 1,366,900 | 1,262,570 |
Fair Value | Variable Rate Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 456,478 | 402,924 |
Fair Value | Mortgages Notes Payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 320,761 | $ 318,515 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments (Textual) (Details) - Brandywine 1919 Ventures $ in Millions | Jun. 26, 2018USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Mortgage loan | $ 44.4 |
Equity method investment, ownership percentage | 50.00% |
Other Assets | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Note receivable | $ 44.4 |
Limited Partners' Non-Control_2
Limited Partners' Non-Controlling Interests in the Parent Company (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Noncontrolling Interest [Abstract] | ||
Aggregate amount related to non-controlling interests classified within equity | $ 9.4 | $ 10.1 |
Settlement value of non controlling interest in operating partnership | $ 14.9 | $ 12.6 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 301,548 | $ 301,548 |
3.090% Interest Rate Swap Maturing October 30, 2019 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | $ 25,774 | 25,774 |
Derivative, fixed interest rate | 3.09% | |
Derivative asset, fair value, gross asset | $ 28 | 183 |
2.868% Interest Rate Swap Maturing October 8, 2022 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, notional amount | $ 250,000 | 250,000 |
Derivative, fixed interest rate | 2.868% | |
Derivative asset, fair value, gross asset | 7,008 | |
Derivative liability, fair value, gross liability | $ (1,586) | |
3.300% Interest Rate Swap Maturing January 30, 2021 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, notional amount | $ 25,774 | 25,774 |
Derivative, fixed interest rate | 3.30% | |
Derivative asset, fair value, gross asset | $ 292 | |
Derivative liability, fair value, gross liability | $ (99) |
Beneficiaries Equity of the P_3
Beneficiaries Equity of the Parent Company - Number of Shares and Net Income Used to Calculate Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||||||
Net income | $ 6,820 | $ 6,252 | $ 4,583 | $ (43,522) | $ 12,876 | $ 44,445 | $ 17,655 | $ 13,799 |
Net income attributable to noncontrolling interests, Basic | (48) | 342 | (155) | (162) | ||||
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (93) | (80) | (305) | (280) | ||||
Net income attributable to noncontrolling interests, Diluted | (48) | 342 | (155) | (162) | ||||
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (93) | (80) | (305) | (280) | ||||
Net income attributable to common shareholders, Diluted | $ 6,679 | $ (43,260) | $ 17,195 | $ 13,357 | ||||
Denominator | ||||||||
Basic weighted average shares outstanding (in shares) | 176,195,244 | 178,602,622 | 176,066,507 | 178,515,993 | ||||
Contingent securities/Share based compensation (in shares) | 555,356 | 0 | 551,219 | 1,236,551 | ||||
Diluted weighted average shares outstanding (in shares) | 176,750,600 | 178,602,622 | 176,617,726 | 179,752,544 | ||||
Earnings per Common Share: | ||||||||
Net income attributable to common shareholders, Basic (USD per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 | ||||
Net income attributable to common shareholders, Diluted (USD per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 |
Beneficiaries Equity of the P_4
Beneficiaries Equity of the Parent Company (Textual) (Details) - USD ($) | Sep. 10, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 03, 2019 |
Class of Stock [Line Items] | ||||||
Dividends, common stock | $ 33,800,000 | |||||
Shares repurchased and retired (in shares) | 1,337,169 | |||||
Share price (in dollars per share) | $ 12.92 | |||||
Value of stock repurchased and retired | $ 0 | $ 17,281,000 | $ 17,300,000 | |||
Maximum | ||||||
Class of Stock [Line Items] | ||||||
Share repurchase, authorized amount | $ 150,000,000 | |||||
Dividend declared | ||||||
Class of Stock [Line Items] | ||||||
Dividends payable (in dollars per share) | $ 0.19 | |||||
Redeemable Common Limited Partnership Units | ||||||
Class of Stock [Line Items] | ||||||
Redeemable common limited partnership units (in shares) | 981,626 | 1,479,799 |
Partners Equity of the Operat_3
Partners Equity of the Operating Partnership - Number of Units and Net Income Used to Calculate Basic and Diluted Earnings Per Common Partnership Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||||||
Net income (loss) | $ 6,820 | $ 6,252 | $ 4,583 | $ (43,522) | $ 12,876 | $ 44,445 | $ 17,655 | $ 13,799 |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (93) | (80) | (305) | (280) | ||||
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | $ (93) | $ (80) | $ (305) | $ (280) | ||||
Denominator | ||||||||
Basic weighted average shares outstanding (in shares) | 176,195,244 | 178,602,622 | 176,066,507 | 178,515,993 | ||||
Contingent securities/Share based compensation (in shares) | 555,356 | 0 | 551,219 | 1,236,551 | ||||
Diluted weighted average shares outstanding (in shares) | 176,750,600 | 178,602,622 | 176,617,726 | 179,752,544 | ||||
Earnings per Common Partnership Unit: | ||||||||
Net income attributable to common shareholders, Basic (USD per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 | ||||
Net income attributable to common shareholders, Diluted (USD per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 | ||||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||||
Numerator | ||||||||
Net income (loss) | $ 6,820 | $ 6,252 | $ 4,583 | $ (43,522) | $ 12,876 | $ 44,445 | $ 17,655 | $ 13,799 |
Net income attributable to noncontrolling interests | (11) | (20) | (58) | (46) | ||||
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (93) | (80) | (305) | (280) | ||||
Net income attributable to common unitholders, Basic | 6,716 | (43,622) | 17,292 | 13,473 | ||||
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (93) | (80) | (305) | (280) | ||||
Net income attributable to common unitholders, Diluted | $ 6,716 | $ (43,622) | $ 17,292 | $ 13,473 | ||||
Denominator | ||||||||
Basic weighted average shares outstanding (in shares) | 177,176,870 | 180,082,421 | 177,048,621 | 179,995,792 | ||||
Contingent securities/Share based compensation (in shares) | 555,356 | 0 | 551,219 | 1,236,551 | ||||
Diluted weighted average shares outstanding (in shares) | 177,732,226 | 180,082,421 | 177,599,840 | 181,232,343 | ||||
Earnings per Common Partnership Unit: | ||||||||
Net income attributable to common shareholders, Basic (USD per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 | ||||
Net income attributable to common shareholders, Diluted (USD per share) | $ 0.04 | $ (0.24) | $ 0.10 | $ 0.07 |
Partners Equity of the Operat_4
Partners Equity of the Operating Partnership (Textual) (Details) - USD ($) | Sep. 10, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 |
Earnings Per Common Partnership Unit [Line Items] | ||||
Dividends, common stock | $ 33,800,000 | |||
Shares repurchased and retired (in shares) | 1,337,169 | |||
Share price (in dollars per share) | $ 12.92 | |||
Value of stock repurchased and retired | $ 0 | $ 17,281,000 | $ 17,300,000 | |
Dividend declared | ||||
Earnings Per Common Partnership Unit [Line Items] | ||||
Dividends payable (in dollars per share) | $ 0.19 | |||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Earnings Per Common Partnership Unit [Line Items] | ||||
Dividends, common stock | $ 33,800,000 | |||
Repurchase program, number of mirror unit of operating partnership retired for each common share repurchased | 1 | |||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Dividend declared | ||||
Earnings Per Common Partnership Unit [Line Items] | ||||
Dividends payable (in dollars per share) | $ 0.19 |
Segment Information (Textual) (
Segment Information (Textual) (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 5 |
Segment Information - Real Esta
Segment Information - Real Estate Investments, at Cost of Company's Reportable Segments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Operating properties | $ 3,995,228 | $ 3,951,719 | |
Right of use asset - operating leases, net | 21,828 | $ 22,400 | 0 |
Construction-in-progress | 151,232 | 150,263 | |
Land held for development | 92,189 | 86,401 | |
Prepaid leasehold interests in land held for development, net | 39,694 | 39,999 | |
Philadelphia CBD | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 1,716,466 | 1,670,388 | |
Pennsylvania Suburbs | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 1,005,332 | 1,002,937 | |
Austin, Texas | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 719,441 | 667,698 | |
Metropolitan Washington, D.C. | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 467,117 | 524,190 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Operating properties | $ 86,872 | $ 86,506 |
Segment Information - Real Es_2
Segment Information - Real Estate Investments, at Cost of Company's Reportable Segments (Additional Information) (Details) - a | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Assets Held-for-sale | Land Held For Development | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 37.9 | |
3001-3003 and 3025 JFK Boulevard | ||
Segment Reporting Information [Line Items] | ||
Lease agreement term | 99 years | 99 years |
Other | Assets Held-for-sale | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 35.2 | |
Other | Assets Held-for-sale | Land Held For Development | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 35.2 | 35.2 |
Pennsylvania Suburbs | Assets Held-for-sale | Land Held For Development | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 2.7 |
Segment Information - Net Opera
Segment Information - Net Operating Income of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 145,331 | $ 134,998 | $ 433,378 | $ 405,142 |
Operating expenses | (56,074) | (52,897) | (170,696) | (161,986) |
Net operating income (loss) | 89,257 | 82,101 | 262,682 | 243,156 |
Operating Segments | Philadelphia CBD | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 66,105 | 64,352 | 196,859 | 190,478 |
Operating expenses | (24,773) | (24,427) | (75,311) | (73,559) |
Net operating income (loss) | 41,332 | 39,925 | 121,548 | 116,919 |
Operating Segments | Pennsylvania Suburbs | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 34,818 | 34,745 | 104,744 | 103,960 |
Operating expenses | (11,667) | (11,956) | (36,466) | (37,075) |
Net operating income (loss) | 23,151 | 22,789 | 68,278 | 66,885 |
Operating Segments | Austin, Texas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 26,280 | 8,641 | 77,234 | 25,474 |
Operating expenses | (9,302) | (3,894) | (28,182) | (10,812) |
Net operating income (loss) | 16,978 | 4,747 | 49,052 | 14,662 |
Operating Segments | Metropolitan Washington, D.C. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 13,179 | 22,754 | 40,372 | 69,012 |
Operating expenses | (5,999) | (8,548) | (18,542) | (25,699) |
Net operating income (loss) | 7,180 | 14,206 | 21,830 | 43,313 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,706 | 3,707 | 10,352 | 13,187 |
Operating expenses | (2,691) | (2,436) | (7,226) | (9,601) |
Net operating income (loss) | 1,015 | 1,271 | 3,126 | 3,586 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 1,243 | 799 | 3,817 | 3,031 |
Operating expenses | (1,642) | (1,636) | (4,969) | (5,240) |
Net operating income (loss) | $ (399) | $ (837) | $ (1,152) | $ (2,209) |
Segment Information - Net Ope_2
Segment Information - Net Operating Income of Company's Reportable Segments (Additional Information) (Details) | Sep. 30, 2019ft²property | Mar. 29, 2019 | Dec. 20, 2018ft²property | Dec. 11, 2018ft²property |
Segment Reporting Information [Line Items] | ||||
Number of properties | property | 95 | |||
Net rentable area (in square feet) | ft² | 16,711,387 | |||
Herndon Innovation Center Metro Portfolio Venture, LLC | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment, ownership percentage | 15.00% | |||
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment, ownership percentage | 15.00% | |||
Net rentable area (in square feet) | ft² | 1,293,197 | |||
Number of properties contributed to a joint venture | property | 8 | |||
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | Rockpoint | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment, ownership percentage | 85.00% | |||
DRA Austin Venture | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Number of properties | property | 12 | |||
Net rentable area (in square feet) | ft² | 1,570,123 |
Segment Information - Unconsoli
Segment Information - Unconsolidated Real Estate Ventures of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | $ 127,759 | $ 127,759 | $ 169,100 | ||
Equity in (loss) income of Real Estate Ventures | (1,965) | $ 1 | (4,814) | $ (1,182) | |
Philadelphia CBD | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 18,114 | 18,114 | 19,897 | ||
Equity in (loss) income of Real Estate Ventures | 55 | (36) | 217 | (183) | |
Metropolitan Washington, D.C. | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 106,111 | 106,111 | 136,142 | ||
Equity in (loss) income of Real Estate Ventures | (528) | (31) | (963) | (431) | |
MAP Venture | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 1,620 | 1,620 | 11,173 | ||
Equity in (loss) income of Real Estate Ventures | (1,602) | (444) | (4,414) | (2,011) | |
Other | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 1,914 | 1,914 | 1,888 | ||
Equity in (loss) income of Real Estate Ventures | 110 | 89 | 346 | 287 | |
Austin, Texas | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 0 | 0 | $ 0 | ||
Equity in (loss) income of Real Estate Ventures | $ 0 | $ 423 | $ 0 | $ 1,156 |
Segment Information - Unconso_2
Segment Information - Unconsolidated Real Estate Ventures of Company's Reportable Segments (Additional Information) (Details) | Sep. 30, 2019ft²property | Dec. 11, 2018ft²property |
Segment Reporting Information [Line Items] | ||
Number of properties | property | 95 | |
Net rentable area (in square feet) | ft² | 16,711,387 | |
DRA Austin Venture | ||
Segment Reporting Information [Line Items] | ||
Equity method investment, ownership percentage | 50.00% | |
Number of properties | property | 12 | |
Net rentable area (in square feet) | ft² | 1,570,123 |
Segment Information - Reconcili
Segment Information - Reconciliation of Consolidated Net Income to Consolidated NOI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting [Abstract] | ||||||||
Net income (loss) | $ 6,820 | $ 6,252 | $ 4,583 | $ (43,522) | $ 12,876 | $ 44,445 | $ 17,655 | $ 13,799 |
Plus: | ||||||||
Interest expense | 20,400 | 19,257 | 61,273 | 58,091 | ||||
Interest expense - amortization of deferred financing costs | 694 | 618 | 2,026 | 1,872 | ||||
Depreciation and amortization | 55,627 | 44,141 | 158,738 | 131,631 | ||||
General and administrative expenses | 6,974 | 5,963 | 25,217 | 22,209 | ||||
Equity in loss (income) of Real Estate Ventures | 1,965 | (1) | 4,814 | 1,182 | ||||
Provision for impairment | 0 | 56,865 | 0 | 56,865 | ||||
Less: | ||||||||
Interest income | 558 | 1,220 | 1,636 | 2,564 | ||||
Income tax provision | 0 | 0 | (46) | (158) | ||||
Net gain (loss) on disposition of real estate | 356 | 0 | 356 | (35) | ||||
Net gain on sale of undepreciated real estate | 250 | 0 | 1,501 | 2,859 | ||||
Net gain on real estate venture transactions | 2,059 | 0 | 3,594 | 37,263 | ||||
Consolidated net operating income | $ 89,257 | $ 82,101 | $ 262,682 | $ 243,156 |
Commitments and Contingencies_2
Commitments and Contingencies (Textual) (Details) - USD ($) | Apr. 02, 2015 | Sep. 30, 2019 | Dec. 31, 2018 | Oct. 13, 2017 |
Property Subject to or Available for Operating Lease [Line Items] | ||||
Loan outstanding principal balance | $ 2,078,255,000 | $ 2,028,046,000 | ||
General allowance for remaining portfolio of operating leases considered collectible | 11,300,000 | |||
4040 Wilson Venture | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Guarantees, maximum exposure amount | 41,300,000 | |||
Loan outstanding principal balance | 150,000,000 | |||
Unconsolidated Real Estate Ventures | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Real estate ventures aggregate indebtedness | 592,400,000 | |||
PJP VII | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Guarantees, maximum exposure amount | 300,000 | |||
Loan outstanding principal balance | 3,700,000 | |||
618 Market Street | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Contingent consideration, liability | $ 2,000,000 | 2,000,000 | ||
Fair value of contingent consideration | 1,600,000 | |||
Interest expense | $ 2,000,000 | |||
The Bulletin Building | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Funding requirement met for capital improvements | 5,100,000 | |||
Expected excess redevelopment funding | 39,000,000 | |||
Estimated aggregate cost | 84,800,000 | |||
Acquisition cost, inclusive in estimated aggregate cost | $ 37,800,000 | |||
Drexel Square | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Required spending in capital improvements to property | 8,500,000 | |||
Estimated potential additional contribution obligation | $ 2,900,000 | |||
Minimum | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Lease terms | 9 years | |||
Minimum | The Bulletin Building | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Required spending in capital improvements to property | $ 8,000,000 | |||
Maximum | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Lease terms | 65 years | |||
Mortgage Lenders | ||||
Property Subject to or Available for Operating Lease [Line Items] | ||||
Associated letter of credit | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Lease Payments on Non-cancelable Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
2019 (three months remaining) | $ 303 | ||
2020 | 1,217 | ||
2021 | 1,232 | ||
2022 | 1,248 | ||
2023 | 1,263 | ||
Thereafter | 111,757 | ||
Total lease payments | 117,020 | ||
Less: Imputed interest | (94,517) | ||
Lease liability - operating leases | $ 22,503 | $ 22,400 | $ 0 |
2019 | 1,222 | ||
2020 | 1,222 | ||
2021 | 1,222 | ||
2022 | 1,222 | ||
2023 | 1,222 | ||
Thereafter | 55,689 | ||
Total | $ 61,799 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | Oct. 10, 2019USD ($) |
Subsequent Event [Line Items] | |
Proceeds from debt, net of issuance costs | $ 214,300,000 |
Repayments of unsecured credit facility | 145,500,000 |
Guaranteed Notes Due 2024 | |
Subsequent Event [Line Items] | |
Indebtedness to third parties, refinanced amount | $ 100,000,000 |
Debt instrument, interest rate, stated percentage | 4.10% |
Debt instrument issued a a premium, percentage of face amount | 106.315% |
Debt instrument, re-offer yield | 2.669% |
Guaranteed Notes Due 2029 | |
Subsequent Event [Line Items] | |
Indebtedness to third parties, refinanced amount | $ 100,000,000 |
Debt instrument, interest rate, stated percentage | 4.55% |
Debt instrument issued a a premium, percentage of face amount | 110.058% |
Debt instrument, re-offer yield | 3.331% |
Uncategorized Items - bdn-20190
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect on Retained Earnings, Net of Tax | us-gaap_CumulativeEffectOnRetainedEarningsNetOfTax1 | $ (5,336,000) |
Subsidiaries [Member] | ||
Cumulative Effect on Retained Earnings, Net of Tax | us-gaap_CumulativeEffectOnRetainedEarningsNetOfTax1 | (5,336,000) |
Subsidiaries [Member] | General Partner [Member] | ||
Cumulative Effect on Retained Earnings, Net of Tax | us-gaap_CumulativeEffectOnRetainedEarningsNetOfTax1 | $ (5,336,000) |