Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 19, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity Registrant Name | Brandywine Realty Trust | |
Entity Incorporation, State or Country Code | MD | |
Entity File Number | 001-9106 | |
Entity Tax Identification Number | 23-2413352 | |
Entity Address, Address Line One | 2929 Arch Street | |
Entity Address, Address Line Two | Suite 1800 | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19104 | |
City Area Code | 610 | |
Local Phone Number | 325-5600 | |
Title of 12(b) Security | Common Shares of Beneficial Interest | |
Trading Symbol | BDN | |
Security Exchange Name | NYSE | |
Entity 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 | 171,383,912 | |
Entity Central Index Key | 0000790816 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Real estate investments: | ||
Operating properties | $ 3,517,995 | $ 3,472,602 |
Accumulated depreciation | (980,860) | (957,450) |
Right of use asset - operating leases, net | 20,150 | 20,313 |
Operating real estate investments, net | 2,557,285 | 2,535,465 |
Construction-in-progress | 283,323 | 277,237 |
Land held for development | 94,411 | 114,604 |
Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 |
Total real estate investments, net | 2,962,781 | 2,955,068 |
Assets held for sale, net | 25,205 | 562 |
Cash and cash equivalents | 39,306 | 27,463 |
Accounts receivable | 14,214 | 11,875 |
Accrued rent receivable, net of allowance of $4,081 and $4,133 as of March 31, 2022 and December 31, 2021, respectively | 170,275 | 167,210 |
Investment in unconsolidated real estate ventures | 461,389 | 435,506 |
Deferred costs, net | 87,652 | 86,862 |
Intangible assets, net | 25,580 | 28,556 |
Other assets | 148,493 | 133,094 |
Total assets | 3,934,895 | 3,846,196 |
LIABILITIES AND EQUITY | ||
Unsecured credit facility | 156,000 | 23,000 |
Unsecured term loan, net | 249,738 | 249,608 |
Unsecured senior notes, net | 1,580,845 | 1,580,978 |
Accounts payable and accrued expenses | 130,073 | 150,151 |
Distributions payable | 32,814 | 32,765 |
Deferred income, gains and rent | 24,758 | 23,849 |
Intangible liabilities, net | 12,085 | 12,981 |
Lease liability - operating leases | 23,014 | 22,962 |
Other liabilities | 49,705 | 48,683 |
Total liabilities | 2,259,032 | 2,144,977 |
Commitments and contingencies (See Note 15) | ||
Equity: | ||
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 171,383,912 and 171,126,257 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 1,714 | 1,712 |
Additional paid-in-capital | 3,147,231 | 3,146,786 |
Deferred compensation payable in common shares | 19,386 | 18,491 |
Common shares in grantor trust, 1,185,541 and 1,169,703 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | (19,386) | (18,491) |
Cumulative earnings | 1,128,465 | 1,122,372 |
Accumulated other comprehensive income (loss) | 1,920 | (2,020) |
Cumulative distributions | (2,611,294) | (2,578,583) |
Total Brandywine Realty Trust's equity | 1,668,036 | 1,690,267 |
Noncontrolling interests | 7,827 | 10,952 |
Total beneficiaries' equity | 1,675,863 | 1,701,219 |
Total liabilities and beneficiaries' equity | $ 3,934,895 | $ 3,846,196 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Revenue | $ 127,505 | $ 120,769 |
Operating expenses | ||
Property operating expenses | 31,548 | 28,935 |
Real estate taxes | 13,813 | 14,761 |
Third party management expenses | 2,557 | 2,978 |
Depreciation and amortization | 43,782 | 40,343 |
General and administrative expenses | 10,000 | 6,584 |
Total operating expenses | 101,700 | 93,601 |
Gain on sale of real estate | ||
Net gain on disposition of real estate | 0 | 74 |
Net gain on sale of undepreciated real estate | 897 | 1,993 |
Total gain on sale of real estate | 897 | 2,067 |
Operating income | 26,702 | 29,235 |
Other income (expense): | ||
Interest and investment income | 440 | 1,674 |
Interest expense | (15,742) | (16,293) |
Interest expense - amortization of deferred financing costs | (709) | (709) |
Equity in loss of unconsolidated real estate ventures | (4,563) | (6,924) |
Net income before income taxes | 6,128 | 6,983 |
Income tax provision | (27) | (19) |
Net income | 6,101 | 6,964 |
Net income attributable to noncontrolling interests | (8) | (43) |
Net income attributable to Brandywine Realty Trust | 6,093 | 6,921 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (148) | (146) |
Net income attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | $ 5,945 | $ 6,775 |
Basic income per Common Share (in dollars per share) | $ 0.03 | $ 0.04 |
Diluted income per Common Share (in dollars per share) | $ 0.03 | $ 0.04 |
Basic weighted average shares outstanding (in shares) | 171,294,949 | 170,624,741 |
Weighted average units outstanding, diluted (in shares) | 172,888,994 | 171,636,120 |
Rents | ||
Revenue | ||
Revenue | $ 115,901 | $ 113,484 |
Third party management fees, labor reimbursement and leasing | ||
Revenue | ||
Revenue | 5,108 | 6,651 |
Other | ||
Revenue | ||
Revenue | $ 6,496 | $ 634 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,101 | $ 6,964 | |
Other Comprehensive Income (Loss) Net of Tax, Period Change [Abstract] | |||
Unrealized gain on derivative financial instruments | 3,764 | 910 | |
Amortization of interest rate contracts | [1] | 188 | 188 |
Other comprehensive income | 3,952 | 1,098 | |
Comprehensive income | 10,053 | 8,062 | |
Comprehensive income attributable to noncontrolling interest | (20) | (49) | |
Comprehensive income attributable to Brandywine Realty Trust | $ 10,033 | $ 8,013 | |
[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 ($) $ in Thousands | Total | Common Stock | Rabbi Trust/Deferred Compensation Shares | Additional Paid-in Capital | Common Shares in Grantor Trust | Cumulative Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Distributions | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2020 | 170,572,964 | 1,160,494 | |||||||
Beginning balance at Dec. 31, 2020 | $ 1,804,648 | $ 1,707 | $ 17,516 | $ 3,138,152 | $ (17,516) | $ 1,110,083 | $ (7,561) | $ (2,448,238) | $ 10,505 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 6,964 | 6,921 | 43 | ||||||
Other comprehensive income | 1,098 | 1,092 | 6 | ||||||
Share-based compensation activity (in shares) | 108,345 | 12,719 | |||||||
Share-based compensation activity | 2,502 | 2,502 | |||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (18,058) | (61,436) | |||||||
Share Issuance from/(to) Deferred Compensation Plan | (198) | $ 142 | (198) | (142) | |||||
Distributions declared | (32,760) | (32,573) | (187) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 170,663,251 | 1,111,777 | |||||||
Ending balance at Mar. 31, 2021 | 1,782,254 | $ 1,707 | $ 17,658 | 3,140,456 | (17,658) | 1,117,004 | (6,469) | (2,480,811) | 10,367 |
Beginning balance (in shares) at Dec. 31, 2021 | 171,126,257 | 1,169,703 | |||||||
Beginning balance at Dec. 31, 2021 | 1,701,219 | $ 1,712 | $ 18,491 | 3,146,786 | (18,491) | 1,122,372 | (2,020) | (2,578,583) | 10,952 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 6,101 | 6,093 | 8 | ||||||
Other comprehensive income | 3,952 | 3,940 | 12 | ||||||
Redemption of LP Units | (4,006) | (4,006) | |||||||
Share-based compensation activity (in shares) | 277,061 | 68,540 | |||||||
Share-based compensation activity | 1,655 | $ 2 | 1,653 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (19,406) | (52,702) | |||||||
Share Issuance from/(to) Deferred Compensation Plan | (249) | $ 895 | (249) | (895) | |||||
Reallocation of Noncontrolling interest | 0 | (959) | 959 | ||||||
Distributions declared | (32,809) | (32,711) | (98) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 171,383,912 | 1,185,541 | |||||||
Ending balance at Mar. 31, 2022 | $ 1,675,863 | $ 1,714 | $ 19,386 | $ 3,147,231 | $ (19,386) | $ 1,128,465 | $ 1,920 | $ (2,611,294) | $ 7,827 |
Consolidated Statements of Be_2
Consolidated Statements of Beneficiaries' Equity (Parenthetical) - $ / shares | Feb. 23, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Statement of Stockholders' Equity [Abstract] | |||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 6,101 | $ 6,964 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 43,782 | 40,343 |
Amortization of deferred financing costs | 709 | 709 |
Amortization of debt discount/(premium), net | (488) | (488) |
Amortization of stock compensation costs | 3,280 | 2,606 |
Straight-line rent income | (3,149) | (4,085) |
Amortization of acquired above (below) market leases, net | (875) | (1,350) |
Ground rent expense | 205 | 297 |
Provision for doubtful accounts | 0 | 253 |
Net gain on sale of interests in real estate | (897) | (2,067) |
Loss from unconsolidated real estate ventures, net of distributions | 4,563 | 6,924 |
Income tax provision | 27 | 19 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,609) | (939) |
Other assets | (9,208) | (10,491) |
Accounts payable and accrued expenses | (14,550) | 4,991 |
Deferred income, gains and rent | 992 | 1,302 |
Other liabilities | 632 | (3,812) |
Net cash provided by operating activities | 28,515 | 41,176 |
Cash flows from investing activities: | ||
Acquisition of properties | (3,446) | 0 |
Proceeds from the sale of properties | 1,481 | 79 |
Payments for Tenant Improvements | (15,148) | (7,202) |
Capital expenditures for redevelopments | (31,942) | (6,339) |
Capital expenditures for developments | (30,455) | (6,681) |
Advances for the purchase of tenant assets, net of repayments | 270 | (443) |
Investment in unconsolidated real estate ventures | (26,762) | (1,884) |
Deposits for real estate | (2,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 3,010 | 3,934 |
Leasing costs paid | (5,245) | (2,713) |
Net cash used in investing activities | (110,787) | (21,249) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 138,000 | 33,000 |
Repayments of credit facility borrowings | (5,000) | (20,000) |
Exercise of stock options, net | 0 | (63) |
Shares used for employee taxes upon vesting of share awards | (2,103) | (758) |
Redemption of limited partnership units | (4,006) | 0 |
Distributions paid to shareholders | (32,604) | (32,516) |
Distributions to noncontrolling interest | (157) | (187) |
Net cash provided by (used in) financing activities | 94,130 | (20,524) |
Increase/(Decrease) in cash and cash equivalents and restricted cash | 11,858 | (597) |
Cash and cash equivalents and restricted cash at beginning of period | 28,300 | 47,077 |
Cash and cash equivalents and restricted cash at end of period | 40,158 | 46,480 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 27,463 | 46,344 |
Restricted cash, beginning of period | 837 | 733 |
Cash and cash equivalents, end of period | 39,306 | 45,717 |
Restricted cash, end of period | 852 | 763 |
Cash and cash equivalents and restricted cash, end of period | 40,158 | 46,480 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the three months ended March 31, 2022 and 2021 of $2,186 and $1,421, respectively | 9,637 | 10,106 |
Cash paid for income taxes | 1 | 1 |
Supplemental disclosure of non-cash activity: | ||
Distributions payable | 32,814 | 32,763 |
Change in investment in real estate ventures as a result of deconsolidation | 0 | 32,761 |
Change in operating real estate from deconsolidation of operating properties | 0 | (30,073) |
Change in other assets as a result of deconsolidation of operating properties | 0 | (2,688) |
Change in capital expenditures financed through accounts payable at period end | (909) | (4,827) |
Change in capital expenditures financed through retention payable at period end | $ (1,475) | $ (3,752) |
CONSOLIDATED BALANCE SHEETS - B
CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Real estate investments: | ||
Operating properties | $ 3,517,995 | $ 3,472,602 |
Accumulated depreciation | (980,860) | (957,450) |
Right of use asset - operating leases, net | 20,150 | 20,313 |
Operating real estate investments, net | 2,557,285 | 2,535,465 |
Construction-in-progress | 283,323 | 277,237 |
Land held for development | 94,411 | 114,604 |
Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 |
Total real estate investments, net | 2,962,781 | 2,955,068 |
Assets held for sale, net | 25,205 | 562 |
Cash and cash equivalents | 39,306 | 27,463 |
Accounts receivable | 14,214 | 11,875 |
Accrued rent receivable, net of allowance of $4,081 and $4,133 as of March 31, 2022 and December 31, 2021, respectively | 170,275 | 167,210 |
Investment in unconsolidated real estate ventures | 461,389 | 435,506 |
Deferred costs, net | 87,652 | 86,862 |
Intangible assets, net | 25,580 | 28,556 |
Other assets | 148,493 | 133,094 |
Total assets | 3,934,895 | 3,846,196 |
LIABILITIES AND EQUITY | ||
Unsecured credit facility | 156,000 | 23,000 |
Unsecured term loan, net | 249,738 | 249,608 |
Unsecured senior notes, net | 1,580,845 | 1,580,978 |
Accounts payable and accrued expenses | 130,073 | 150,151 |
Distributions payable | 32,814 | 32,765 |
Deferred income, gains and rent | 24,758 | 23,849 |
Intangible liabilities, net | 12,085 | 12,981 |
Lease liability - operating leases | 23,014 | 22,962 |
Other liabilities | 49,705 | 48,683 |
Total liabilities | 2,259,032 | 2,144,977 |
Commitments and contingencies (See Note 15) | ||
Equity: | ||
Accumulated other comprehensive income (loss) | 1,920 | (2,020) |
Total liabilities and beneficiaries' equity | 3,934,895 | 3,846,196 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Real estate investments: | ||
Operating properties | 3,517,995 | 3,472,602 |
Accumulated depreciation | (980,860) | (957,450) |
Right of use asset - operating leases, net | 20,150 | 20,313 |
Operating real estate investments, net | 2,557,285 | 2,535,465 |
Construction-in-progress | 283,323 | 277,237 |
Land held for development | 94,411 | 114,604 |
Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 |
Total real estate investments, net | 2,962,781 | 2,955,068 |
Assets held for sale, net | 25,205 | 562 |
Cash and cash equivalents | 39,306 | 27,463 |
Accounts receivable | 14,214 | 11,875 |
Accrued rent receivable, net of allowance of $4,081 and $4,133 as of March 31, 2022 and December 31, 2021, respectively | 170,275 | 167,210 |
Investment in unconsolidated real estate ventures | 461,389 | 435,506 |
Deferred costs, net | 87,652 | 86,862 |
Intangible assets, net | 25,580 | 28,556 |
Other assets | 148,493 | 133,094 |
Total assets | 3,934,895 | 3,846,196 |
LIABILITIES AND EQUITY | ||
Unsecured credit facility | 156,000 | 23,000 |
Unsecured term loan, net | 249,738 | 249,608 |
Unsecured senior notes, net | 1,580,845 | 1,580,978 |
Accounts payable and accrued expenses | 130,073 | 150,151 |
Distributions payable | 32,814 | 32,765 |
Deferred income, gains and rent | 24,758 | 23,849 |
Intangible liabilities, net | 12,085 | 12,981 |
Lease liability - operating leases | 23,014 | 22,962 |
Other liabilities | 49,705 | 48,683 |
Total liabilities | 2,259,032 | 2,144,977 |
Commitments and contingencies (See Note 15) | ||
Redeemable limited partnership units at redemption value; 516,467 and 823,983 issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 7,338 | 11,140 |
Equity: | ||
General Partnership Capital; 171,383,912 and 171,126,257 units issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 1,664,107 | 1,689,611 |
Accumulated other comprehensive income (loss) | 1,586 | (2,366) |
Total Brandywine Operating Partnership, L.P.'s equity | 1,665,693 | 1,687,245 |
Noncontrolling interest - consolidated real estate ventures | 2,832 | 2,834 |
Total partners' equity | 1,668,525 | 1,690,079 |
Total liabilities and beneficiaries' equity | $ 3,934,895 | $ 3,846,196 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued rent receivable, allowance | $ 4,081 | $ 4,133 |
Common stock, shares issued (in shares) | 171,383,912 | 171,126,257 |
Common stock, shares outstanding (in shares) | 171,383,912 | 171,126,257 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Accrued rent receivable, allowance | $ 4,081 | $ 4,133 |
Redeemable limited partnership units issued (in units) | 516,467 | 823,983 |
Redeemable limited partnership units outstanding (in units) | 516,467 | 823,983 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Revenue | $ 127,505 | $ 120,769 |
Operating expenses | ||
Property operating expenses | 31,548 | 28,935 |
Real estate taxes | 13,813 | 14,761 |
Third party management expenses | 2,557 | 2,978 |
Depreciation and amortization | 43,782 | 40,343 |
General and administrative expenses | 10,000 | 6,584 |
Total operating expenses | 101,700 | 93,601 |
Gain on sale of real estate | ||
Net gain on disposition of real estate | 0 | 74 |
Net gain on sale of undepreciated real estate | 897 | 1,993 |
Total gain on sale of real estate | 897 | 2,067 |
Operating income | 26,702 | 29,235 |
Other income (expense): | ||
Interest and investment income | 440 | 1,674 |
Interest expense | (15,742) | (16,293) |
Interest expense - amortization of deferred financing costs | (709) | (709) |
Equity in loss of unconsolidated real estate ventures | (4,563) | (6,924) |
Net income before income taxes | 6,128 | 6,983 |
Income tax provision | (27) | (19) |
Net income | 6,101 | 6,964 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (148) | (146) |
Net income attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | $ 5,945 | $ 6,775 |
Basic income per Common Share (in dollars per share) | $ 0.03 | $ 0.04 |
Diluted income per Common Share (in dollars per share) | $ 0.03 | $ 0.04 |
Basic weighted average shares outstanding (in shares) | 171,294,949 | 170,624,741 |
Weighted average units outstanding, diluted (in shares) | 172,888,994 | 171,636,120 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Revenue | ||
Revenue | $ 127,505 | $ 120,769 |
Operating expenses | ||
Property operating expenses | 31,548 | 28,935 |
Real estate taxes | 13,813 | 14,761 |
Third party management expenses | 2,557 | 2,978 |
Depreciation and amortization | 43,782 | 40,343 |
General and administrative expenses | 10,000 | 6,584 |
Provision for impairment | 0 | 0 |
Total operating expenses | 101,700 | 93,601 |
Gain on sale of real estate | ||
Net gain on disposition of real estate | 0 | 74 |
Net gain on sale of undepreciated real estate | 897 | 1,993 |
Total gain on sale of real estate | 897 | 2,067 |
Operating income | 26,702 | 29,235 |
Other income (expense): | ||
Interest and investment income | 440 | 1,674 |
Interest expense | (15,742) | (16,293) |
Interest expense - amortization of deferred financing costs | (709) | (709) |
Equity in loss of unconsolidated real estate ventures | (4,563) | (6,924) |
Net income before income taxes | 6,128 | 6,983 |
Income tax provision | (27) | (19) |
Net income | 6,101 | 6,964 |
Net loss attributable to noncontrolling interests - consolidated real estate ventures | 2 | 1 |
Net income attributable to Brandywine Operating Partnership | 6,103 | 6,965 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (148) | (146) |
Net income attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | $ 5,955 | $ 6,819 |
Basic income per Common Share (in dollars per share) | $ 0.03 | $ 0.04 |
Diluted income per Common Share (in dollars per share) | $ 0.03 | $ 0.04 |
Basic weighted average shares outstanding (in shares) | 171,927,588 | 171,606,375 |
Weighted average units outstanding, diluted (in shares) | 173,521,633 | 172,617,754 |
Rents | ||
Revenue | ||
Revenue | $ 115,901 | $ 113,484 |
Rents | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Revenue | ||
Revenue | 115,901 | 113,484 |
Third party management fees, labor reimbursement and leasing | ||
Revenue | ||
Revenue | 5,108 | 6,651 |
Third party management fees, labor reimbursement and leasing | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Revenue | ||
Revenue | 5,108 | 6,651 |
Other | ||
Revenue | ||
Revenue | 6,496 | 634 |
Other | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Revenue | ||
Revenue | $ 6,496 | $ 634 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Net income | $ 6,101 | $ 6,964 | |
Comprehensive income: | |||
Unrealized gain on derivative financial instruments | 3,764 | 910 | |
Amortization of interest rate contracts | [1] | 188 | 188 |
Total comprehensive income | 3,952 | 1,098 | |
Comprehensive income | 10,053 | 8,062 | |
Comprehensive loss attributable to noncontrolling interest - consolidated real estate ventures | (20) | (49) | |
Comprehensive income attributable to Brandywine Realty Trust | 10,033 | 8,013 | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||
Net income | 6,101 | 6,964 | |
Comprehensive income: | |||
Unrealized gain on derivative financial instruments | 3,764 | 910 | |
Amortization of interest rate contracts | [1] | 188 | 188 |
Total comprehensive income | 3,952 | 1,098 | |
Comprehensive income | 10,053 | 8,062 | |
Comprehensive loss attributable to noncontrolling interest - consolidated real estate ventures | 2 | 1 | |
Comprehensive income attributable to Brandywine Realty Trust | $ 10,055 | $ 8,063 | |
[1] | Amounts reclassified from comprehensive income to interest expense within the Consolidated Statements of Operations. |
CONSOLIDATED STATEMENTS OF PART
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest - Consolidated Real Estate Ventures | General Partner Capital | BRANDYWINE OPERATING PARTNERSHIP, L.P. | BRANDYWINE OPERATING PARTNERSHIP, L.P.Accumulated Other Comprehensive Income (Loss) | BRANDYWINE OPERATING PARTNERSHIP, L.P.Noncontrolling Interest - Consolidated Real Estate Ventures | BRANDYWINE OPERATING PARTNERSHIP, L.P.General Partner Capital |
Beginning balance (in shares) at Dec. 31, 2020 | 170,572,964 | |||||||
Beginning Balance at Dec. 31, 2020 | $ 1,793,082 | $ (7,935) | $ 72 | $ 1,800,945 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Net income | $ 6,964 | $ 43 | 6,964 | (1) | $ 6,965 | |||
Other comprehensive income (loss) | 1,098 | $ 1,092 | 6 | 1,098 | 1,098 | |||
Deferred compensation obligation (in shares) | (18,058) | |||||||
Deferred compensation obligation | (198) | (198) | $ (198) | |||||
Share-based compensation activity (in shares) | 108,345 | |||||||
Share-based compensation activity | 2,502 | 2,502 | $ 2,502 | |||||
Adjustment of redeemable partnership units to liquidation value at period end | (1,294) | (1,294) | ||||||
Distributions declared to general partnership unitholders | (32,573) | $ (32,573) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 170,663,251 | |||||||
Ending Balance at Mar. 31, 2021 | 1,769,581 | (6,837) | 71 | $ 1,776,347 | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 171,126,257 | |||||||
Beginning Balance at Dec. 31, 2021 | 1,690,079 | (2,366) | 2,834 | $ 1,689,611 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Net income | 6,101 | 8 | 6,101 | (2) | $ 6,103 | |||
Other comprehensive income (loss) | 3,952 | $ 3,940 | $ 12 | 3,952 | 3,952 | |||
Deferred compensation obligation (in shares) | (19,406) | |||||||
Deferred compensation obligation | (249) | (249) | $ (249) | |||||
Repurchase and retirement of LP units (in shares) | (307,516) | |||||||
Repurchase and retirement of LP units | (4,006) | $ (4,006) | ||||||
Share-based compensation activity (in shares) | 277,061 | |||||||
Share-based compensation activity | $ 1,655 | 1,655 | $ 1,655 | |||||
Adjustment of redeemable partnership units to liquidation value at period end | 3,704 | 3,704 | ||||||
Distributions declared to general partnership unitholders | (32,711) | $ (32,711) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 171,383,912 | |||||||
Ending Balance at Mar. 31, 2022 | $ 1,668,525 | $ 1,586 | $ 2,832 | $ 1,664,107 |
CONSOLIDATED STATEMENTS OF PA_2
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | General Partner Capital | ||
Distributions to general partnership unitholders (USD per share) | $ 0.19 | $ 0.19 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 6,101 | $ 6,964 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 43,782 | 40,343 |
Amortization of deferred financing costs | 709 | 709 |
Amortization of debt discount/(premium), net | (488) | (488) |
Amortization of stock compensation costs | 3,280 | 2,606 |
Straight-line rent income | (3,149) | (4,085) |
Amortization of acquired above (below) market leases, net | (875) | (1,350) |
Ground rent expense | 205 | 297 |
Provision for doubtful accounts | 0 | 253 |
Net gain on sale of interests in real estate | (897) | (2,067) |
Loss from unconsolidated real estate ventures, net of distributions | 4,563 | 6,924 |
Income tax provision | 27 | 19 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,609) | (939) |
Other assets | (9,208) | (10,491) |
Accounts payable and accrued expenses | (14,550) | 4,991 |
Deferred income, gains and rent | 992 | 1,302 |
Other liabilities | 632 | (3,812) |
Net cash provided by operating activities | 28,515 | 41,176 |
Cash flows from investing activities: | ||
Acquisition of properties | (3,446) | 0 |
Proceeds from the sale of properties | 1,481 | 79 |
Capital expenditures for tenant improvements | (15,148) | (7,202) |
Capital expenditures for redevelopments | (31,942) | (6,339) |
Capital expenditures for developments | (30,455) | (6,681) |
Advances for the purchase of tenant assets, net of repayments | 270 | (443) |
Investment in unconsolidated real estate ventures | (26,762) | (1,884) |
Deposits for real estate | (2,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 3,010 | 3,934 |
Leasing costs paid | (5,245) | (2,713) |
Net cash used in investing activities | (110,787) | (21,249) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 138,000 | 33,000 |
Repayments of credit facility borrowings | (5,000) | (20,000) |
Exercise of stock options, net | 0 | (63) |
Shares used for employee taxes upon vesting of share awards | (2,103) | (758) |
Redemption of limited partnership units | (4,006) | 0 |
Distributions paid to shareholders | (32,604) | (32,516) |
Net cash provided by (used in) financing activities | 94,130 | (20,524) |
Increase/(Decrease) in cash and cash equivalents and restricted cash | 11,858 | (597) |
Cash and cash equivalents and restricted cash at beginning of period | 28,300 | 47,077 |
Cash and cash equivalents and restricted cash at end of period | 40,158 | 46,480 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 27,463 | 46,344 |
Restricted cash, beginning of period | 837 | 733 |
Cash and cash equivalents and restricted cash at beginning of period | 28,300 | 47,077 |
Cash and cash equivalents, end of period | 39,306 | 45,717 |
Restricted cash, end of period | 852 | 763 |
Cash and cash equivalents and restricted cash at end of period | 40,158 | 46,480 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the three months ended March 31, 2022 and 2021 of $2,186 and $1,421, respectively | 9,637 | 10,106 |
Cash paid for income taxes | 1 | 1 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 32,814 | 32,763 |
Change in investment in real estate ventures as a result of deconsolidation | 0 | 32,761 |
Change in operating real estate from deconsolidation of operating properties | 0 | (30,073) |
Change in other assets as a result of deconsolidation of operating properties | 0 | (2,688) |
Change in capital expenditures financed through accounts payable at period end | (909) | (4,827) |
Change in capital expenditures financed through retention payable at period end | (1,475) | (3,752) |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Cash flows from operating activities: | ||
Net income | 6,101 | 6,964 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 43,782 | 40,343 |
Amortization of deferred financing costs | 709 | 709 |
Amortization of debt discount/(premium), net | (488) | (488) |
Amortization of stock compensation costs | 3,280 | 2,606 |
Straight-line rent income | (3,149) | (4,085) |
Amortization of acquired above (below) market leases, net | (875) | (1,350) |
Ground rent expense | 205 | 297 |
Provision for doubtful accounts | 0 | 253 |
Net gain on sale of interests in real estate | (897) | (2,067) |
Loss from unconsolidated real estate ventures, net of distributions | 4,563 | 6,924 |
Income tax provision | 27 | 19 |
Changes in assets and liabilities: | ||
Accounts receivable | (2,609) | (939) |
Other assets | (9,208) | (10,491) |
Accounts payable and accrued expenses | (14,550) | 4,991 |
Deferred income, gains and rent | 992 | 1,302 |
Other liabilities | 632 | (3,812) |
Net cash provided by operating activities | 28,515 | 41,176 |
Cash flows from investing activities: | ||
Acquisition of properties | (3,446) | 0 |
Proceeds from the sale of properties | 1,481 | 79 |
Capital expenditures for tenant improvements | (15,148) | (7,202) |
Capital expenditures for redevelopments | (31,942) | (6,339) |
Capital expenditures for developments | (30,455) | (6,681) |
Advances for the purchase of tenant assets, net of repayments | 270 | (443) |
Investment in unconsolidated real estate ventures | (26,762) | (1,884) |
Deposits for real estate | (2,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 3,010 | 3,934 |
Leasing costs paid | (5,245) | (2,713) |
Net cash used in investing activities | (110,787) | (21,249) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 138,000 | 33,000 |
Repayments of credit facility borrowings | (5,000) | (20,000) |
Exercise of stock options, net | 0 | (63) |
Shares used for employee taxes upon vesting of share awards | (2,103) | (758) |
Redemption of limited partnership units | (4,006) | 0 |
Distributions paid to shareholders | (32,761) | (32,703) |
Net cash provided by (used in) financing activities | 94,130 | (20,524) |
Increase/(Decrease) in cash and cash equivalents and restricted cash | 11,858 | (597) |
Cash and cash equivalents and restricted cash at beginning of period | 28,300 | 47,077 |
Cash and cash equivalents and restricted cash at end of period | 40,158 | 46,480 |
Reconciliation of cash and cash equivalents and restricted cash: | ||
Cash and cash equivalents, beginning of period | 27,463 | 46,344 |
Restricted cash, beginning of period | 837 | 733 |
Cash and cash equivalents and restricted cash at beginning of period | 28,300 | 47,077 |
Cash and cash equivalents, end of period | 39,306 | 45,717 |
Restricted cash, end of period | 852 | 763 |
Cash and cash equivalents and restricted cash at end of period | 40,158 | 46,480 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the three months ended March 31, 2022 and 2021 of $2,186 and $1,421, respectively | 9,637 | 10,106 |
Cash paid for income taxes | 1 | 1 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 32,814 | 32,763 |
Change in investment in real estate ventures as a result of deconsolidation | 0 | 32,761 |
Change in operating real estate from deconsolidation of operating properties | 0 | (30,073) |
Change in other assets as a result of deconsolidation of operating properties | 0 | (2,688) |
Change in capital expenditures financed through accounts payable at period end | (909) | (4,827) |
Change in capital expenditures financed through retention payable at period end | $ (1,475) | $ (3,752) |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Capitalized interest | $ 2,186 | $ 1,421 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Capitalized interest | $ 2,186 | $ 1,421 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accrued rent receivable, allowance | $ 4,081 | $ 4,133 |
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 (in shares) | 171,383,912 | 171,126,257 |
Common stock, shares outstanding (in shares) | 171,383,912 | 171,126,257 |
Common shares in grantor trust, issued and outstanding (in shares) | 1,185,541 | 1,169,703 |
CONSOLIDATED STATEMENTS OF CA_4
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 2,186 | $ 1,421 |
ORGANIZATION OF THE PARENT COMP
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP | 1. ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP Brandywine Realty Trust (the "Parent Company") is a self-administered and self-managed real estate investment trust (“REIT”) engaged in the acquisition, development, redevelopment, ownership, management, and operation of a portfolio of office and mixed-use properties. The Parent Company owns its assets and conducts its operations through Brandywine Operating Partnership, L.P. (the "Operating Partnership") and subsidiaries of the Operating Partnership. The Parent Company is the sole general partner of the Operating Partnership and, as of March 31, 2022, owned a 99.7% interest in the Operating Partnership. The Parent Company’s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol “BDN.” The Parent Company, the Operating Partnership, and their consolidated subsidiaries are collectively referred to as the "Company." As of March 31, 2022, the Company owned 81 properties that contained an aggregate of approximately 13.7 million net rentable square feet (collectively, the “Properties”). The Company’s core portfolio of operating properties (the “Core Properties”) excludes development properties, redevelopment properties, and properties held for sale. The Properties were comprised of the following as of March 31, 2022: Number of Properties Rentable Square Feet Office properties 72 12,097,300 Mixed-use properties 5 942,334 Core Properties 77 13,039,634 Development property 1 205,803 Redevelopment properties 3 432,699 The Properties 81 13,678,136 In addition to the Properties, as of March 31, 2022, the Company owned 169.4 acres of land held for development, of which 0.8 acres were held for sale. The Company also held a leasehold interest in one land parcel totaling 0.8 acres, acquired through a prepaid 99-year ground lease, and held options to purchase approximately 55.5 additional acres of undeveloped land. As of March 31, 2022, the total potential development that this inventory of land could support under current zoning and entitlements, including the parcels under option, amounted to an estimated 13.4 million square feet, of which 0.2 million square feet relates to the 0.8 acres held for sale. As of March 31, 2022, the Company also owned economic interests in ten unconsolidated real estate ventures (see Note 4, ''Investment in Unconsolidated Real Estate Ventures” for further information). The Properties and the properties owned by the unconsolidated real estate ventures are primarily located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. The Company conducts its third-party real estate management services business primarily through wholly-owned management company subsidiaries. As of March 31, 2022, the management company subsidiaries were managing properties containing an aggregate of approximately 23.1 million net rentable square feet, of which approximately 13.7 million net rentable square feet related to Properties owned by the Company and approximately 9.4 million net rentable square feet related to properties owned by third parties and unconsolidated real estate ventures. Unless otherwise indicated, all references in this Form 10-Q to square feet represent net rentable area. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | 2. BASIS OF PRESENTATION Basis of Presentation The consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("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 March 31, 2022, the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021. The results of operations for such interim periods are not necessarily indicative of the results for a full year. These consolidated financial statements should be read in conjunction with the Parent Company’s and the Operating Partnership’s consolidated financial statements and footnotes included in their combined Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 24, 2022. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The Company's Annual Report on Form 10-K for the year ended December 31, 2021 contains a discussion of its significant accounting policies under Note 2, "Summary of Significant Accounting Policies" . There have been no significant changes in the Company's significant accounting policies since December 31, 2021. Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur. |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | 3. REAL ESTATE INVESTMENTS As of March 31, 2022 and December 31, 2021, the gross carrying value of the operating properties was as follows (in thousands): March 31, 2022 December 31, 2021 Land $ 410,103 $ 410,144 Building and improvements 2,696,233 2,653,492 Tenant improvements 411,659 408,966 Total $ 3,517,995 $ 3,472,602 Acquisitions The following table summarizes the property acquisitions during the three months ended March 31, 2022 (dollars in thousands): Property/Portfolio Name Acquisition Date Location Property Type Rentable Square Feet/Acres Purchase Price 631 Park Avenue January 21, 2022 King of Prussia, PA Land 3.3 acres $ 3,650 Dispositions The following table summarizes the property dispositions during the three months ended March 31, 2022 (dollars in thousands): Property/Portfolio Name Disposition Date Location Property Type Rentable Square Feet/Acres Sales Price Gain/(Loss) on Sale (a) Gateway G & H January 20, 2022 Richmond, VA Land 10.0 acres $ 1,600 $ 897 (a) Gain/(Loss) on Sale is net of closing and other transaction related costs. One Uptown Venture On December 1, 2021, the Company entered into two joint venture agreements with affiliates of Canyon Partners Real Estate to commence development of One Uptown, a $328.4 million mixed-used project in Austin, Texas. One Uptown has been designed to deliver 348,000 square feet of Class-A workspace and 15,000 square feet of street-level retail space (through the "office" joint venture) and 341 apartment residences and a public park (through the "multifamily" joint venture) and a six-story parking garage to be shared by the two joint ventures. The Company's partner in each of the two joint ventures has agreed, subject to customary funding conditions, including closing of the applicable construction loan, to fund approximately $57.5 million of the combined project costs in exchange for a 50% preferred equity interest in each of the two joint ventures, with the Company retaining a 50% common equity interest in each. The Company is in the process of securing a construction loan for each of the two joint ventures that would total approximately $213.4 million, representing 65% of the combined project costs. Under the terms of each of the joint venture agreements, the joint venture partner has no obligation to fund any portion of the applicable project costs until the closing of the applicable construction loan. This right prevents the Company from meeting the sale recognition criteria of ASC 606 until the applicable closings of the construction loans. Held for Sale As of March 31, 2022, the Company determined that the sale of one parcel of land within the Metropolitan Washington, D.C. segment totaling 0.8 acres was probable and classified the property as held for sale. As such, $25.2 million was classified as “Assets held for sale, net” on the consolidated balance sheet. The Company closed on the sale of the parcel of land on April 14, 2022 for an aggregate sales price of $29.7 million. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES As of March 31, 2022, the Company held ownership interests in ten unconsolidated real estate ventures for a net aggregate investment balance of $434.6 million, which includes a negative investment balance in one unconsolidated real estate venture of $26.8 million, reflected within "Other liabilities" on the consolidated balance sheets. As of March 31, 2022, five of the real estate ventures owned properties that contained an aggregate of approximately 9.1 million net rentable square feet of office space; two real estate ventures owned 1.4 acres of land held for development; one real estate venture owned 1.0 acres of land in active development; one real estate venture owned a mixed used tower comprised of 250 apartment units and 0.2 million net rentable square feet of office/retail space; and one real estate venture owned a residential tower that contained 321 apartment units. The Company accounts for its interests in the unconsolidated real estate ventures, which range from 15% to 70%, using the equity method. Certain of the unconsolidated real estate ventures are subject to specified priority allocations of distributable cash. The Company earned management fees from the unconsolidated real estate ventures of $1.9 million and $2.0 million for the three months ended March 31, 2022 and 2021, respectively. The Company earned leasing commissions from the unconsolidated real estate ventures of $0.4 million and $1.3 million for the three months ended March 31, 2022 and 2021, respectively. The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $2.6 million and $2.5 million as of March 31, 2022 and December 31, 2021, respectively. The amounts reflected in the following tables (except for the Company’s share of equity in income) are based on the financial information of the individual unconsolidated real estate ventures. The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Net property $ 1,939,193 $ 1,563,263 Other assets 519,361 434,687 Other liabilities 403,715 331,947 Debt, net 1,210,476 956,668 Equity (a) 844,363 709,335 (a) This amount does not include the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level. The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the three month periods ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Revenue $ 53,216 $ 53,357 Operating expenses (28,592) (28,987) Interest expense, net (7,469) (7,374) Depreciation and amortization (21,283) (24,893) Net loss $ (4,128) $ (7,897) Ownership interest % Various Various Company's share of net loss $ (4,617) $ (6,541) Basis adjustments and other 54 (383) Equity in loss of unconsolidated real estate ventures $ (4,563) $ (6,924) Cira Square Venture On March 17, 2022, the Company formed a joint venture, Cira Square REIT, LLC (“Cira Square Venture”), for the purpose of acquiring Cira Square, an office property located at 2970 Market Street in Philadelphia, Pennsylvania containing 862,692 rentable square feet for a gross purchase price of $383.0 million. The Company owns a 20% common equity interest in Cira Square Venture and provided an initial capital contribution of $28.6 million on the closing date. On the closing date, Cira Square Venture also obtained $257.7 million of third-party debt financing secured by the property. The loan bears interest at 3.50% over one-month term Secured Overnight Financing Rate ("SOFR") per annum and matures in March 2024. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | 5. LEASES Lessor Accounting The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, Lease Revenue 2022 2021 Fixed contractual payments $ 88,763 $ 86,380 Variable lease payments 24,331 24,148 Total $ 113,094 $ 110,528 |
INTANGIBLE ASSETS AND LIABILITI
INTANGIBLE ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND LIABILITIES | 6. INTANGIBLE ASSETS AND LIABILITIES As of March 31, 2022 and December 31, 2021, the Company’s intangible assets/liabilities were comprised of the following (in thousands): March 31, 2022 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 63,601 $ (38,245) $ 25,356 Tenant relationship value 167 (98) 69 Above market leases acquired 486 (331) 155 Total intangible assets, net $ 64,254 $ (38,674) $ 25,580 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 24,485 $ (12,400) $ 12,085 December 31, 2021 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 72,376 $ (44,066) $ 28,310 Tenant relationship value 167 (97) 70 Above market leases acquired 486 (310) 176 Total intangible assets, net $ 73,029 $ (44,473) $ 28,556 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 27,025 $ (14,044) $ 12,981 As of March 31, 2022, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands): Assets Liabilities 2022 (nine months remaining) $ 6,665 $ 1,691 2023 6,724 1,540 2024 4,433 1,321 2025 3,255 1,044 2026 1,195 754 Thereafter 3,308 5,735 Total $ 25,580 $ 12,085 |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | 7. DEBT OBLIGATIONS The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Effective Maturity UNSECURED DEBT $600 million Unsecured Credit Facility $ 156,000 $ 23,000 LIBOR + 1.10% July 2022 (a) Term Loan - Swapped to fixed 250,000 250,000 2.87% October 2022 $350.0M 3.95% Guaranteed Notes due 2023 350,000 350,000 3.87% February 2023 $350.0M 4.10% Guaranteed Notes due 2024 350,000 350,000 3.78% October 2024 $450.0M 3.95% Guaranteed Notes due 2027 450,000 450,000 4.03% November 2027 $350.0M 4.55% Guaranteed Notes due 2029 350,000 350,000 4.30% October 2029 Indenture IA (Preferred Trust I) 27,062 27,062 LIBOR + 1.25% March 2035 Indenture IB (Preferred Trust I) 25,774 25,774 LIBOR + 1.25% April 2035 Indenture II (Preferred Trust II) 25,774 25,774 LIBOR + 1.25% July 2035 Principal balance outstanding 1,984,610 1,851,610 Plus: original issue premium (discount), net 7,699 8,187 Less: deferred financing costs (5,726) (6,211) Total unsecured indebtedness $ 1,986,583 $ 1,853,586 (a) The Company has the right to extend the term of the Unsecured Credit Facility until July 2023 through two successive six-month extension options. The extension fees amount to 0.0625% and 0.0750% of the $600.0 million borrowing capacity for the first and second six-month extension, respectively. The Company utilizes borrowings under its unsecured credit facility (the “Unsecured Credit Facility”) for general business purposes, including to fund costs of acquisitions, developments and redevelopments of properties, fund share repurchases and repay other debt. The Unsecured 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 three months ended March 31, 2022, the weighted-average interest rate on Unsecured Credit Facility borrowings was 1.30% resulting in $0.3 million of interest expense. 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 March 31, 2022. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. As of March 31, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2022 (nine months remaining) $ 406,000 2023 350,000 2024 350,000 2025 — 2026 — Thereafter 878,610 Total principal payments 1,984,610 Net unamortized premiums/(discounts) 7,699 Net deferred financing costs (5,726) Outstanding indebtedness $ 1,986,583 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 8. 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 March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021 approximate the fair values for cash and cash equivalents, accounts receivable, other assets and liabilities, accounts payable and accrued expenses because they are short-term in duration. The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands): March 31, 2022 December 31, 2021 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,502,235 $ 1,515,265 $ 1,502,368 $ 1,588,780 Variable rate debt $ 484,348 $ 466,999 $ 351,218 $ 344,754 Notes receivable (b) $ 44,430 $ 44,862 $ 44,430 $ 45,230 (a) Net of deferred financing costs of $5.5 million and $5.8 million for unsecured notes payable and $0.3 million and $0.4 million for variable rate debt as of March 31, 2022 and December 31, 2021. (b) For further detail, refer to Note , ''Debt and Preferred Equity Investments." 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 related party note receivable of $44.4 million within 'Other assets' on the consolidated balance sheets. Refer to Note 5, ''Debt and Preferred Equity Investments" to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 for further detail regarding this financing. The Company used quoted market prices as of March 31, 2022 and December 31, 2021 to value the unsecured notes payable and, as such, categorized them as Level 2. The inputs utilized to determine the fair value of the Company’s variable rate debt are categorized as Level 3. The fair value of the variable rate debt was determined using a discounted cash flow model that considered borrowing rates available to the Company for loans with similar terms and characteristics. The inputs utilized to determine fair value of the Company's notes receivable are unobservable and, as such, were categorized as Level 3. Fair value was determined using a discounted cash flow model that considered the contractual interest and principal payments discounted at a blended interest rate of the notes receivable. For the Company’s Level 3 financial instruments for which fair value is disclosed, an increase in the discount rate used to determine fair value would result in a decrease to the fair value. Conversely, a decrease in the discount rate would result in an increase to the fair value. Disclosure about the fair value of financial instruments is based upon pertinent information available to management as of March 31, 2022 and December 31, 2021. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts were not comprehensively revalued for purposes of these financial statements since March 31, 2022. Current estimates of fair value may differ from the amounts presented herein. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 9. DERIVATIVE FINANCIAL INSTRUMENTS The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of March 31, 2022 and December 31, 2021. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time, but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands). Hedge Product Hedge Type Designation Notional Amount Strike Trade Date Maturity Date Fair value 3/31/2022 12/31/2021 3/31/2022 12/31/2021 Liabilities Swap Interest Rate Cash Flow (a) $ 250,000 $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ (545) $ (2,461) $ 250,000 $ 250,000 (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. |
LIMITED PARTNERS' NONCONTROLLIN
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY | 10. LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY Noncontrolling interests in the Parent Company’s financial statements relate to redeemable common limited partnership interests in the Operating Partnership held by parties other than the Parent Company and properties which are consolidated but not wholly owned by the Operating Partnership. Operating Partnership During the three months ended March 31, 2022, 307,516 Class A units of limited partnership interest held by unaffiliated third parties were redeemed for a total cash payment of $4.0 million. The aggregate book value of the noncontrolling interests associated with the redeemable common limited partnership interests in the accompanying consolidated balance sheet of the Parent Company was $5.0 million and $8.2 million as of March 31, 2022 and December 31, 2021, respectively. Under the applicable accounting guidance, the redemption value of limited partnership units are carried at fair value. The Parent Company believes that the aggregate settlement value of these interests (based on the number of units outstanding and the average closing price of the common shares during the last five business days of the quarter) was approximately $7.3 million and $11.1 million as of March 31, 2022 and December 31, 2021, respectively. |
BENEFICIARIES' EQUITY OF THE PA
BENEFICIARIES' EQUITY OF THE PARENT COMPANY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
BENEFICIARIES' EQUITY OF THE PARENT COMPANY | 11. BENEFICIARIES' EQUITY OF THE PARENT COMPANY Earnings per Share (EPS) The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding): Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 6,101 $ 6,101 $ 6,964 $ 6,964 Net income attributable to noncontrolling interests (8) (8) (43) (43) Nonforfeitable dividends allocated to unvested restricted shareholders (148) (148) (146) (146) Net income attributable to common shareholders $ 5,945 $ 5,945 $ 6,775 $ 6,775 Denominator Weighted-average shares outstanding 171,294,949 171,294,949 170,624,741 170,624,741 Contingent securities/Share based compensation — 1,594,045 — 1,011,379 Weighted-average shares outstanding 171,294,949 172,888,994 170,624,741 171,636,120 Earnings per Common Share: Net income attributable to common shareholders $ 0.03 $ 0.03 $ 0.04 $ 0.04 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 months ended March 31, 2022 and 2021, 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 February 23, 2022, the Parent Company declared a distribution of $0.19 per common share, totaling $32.8 million, which was paid on April 20, 2022 to shareholders of record as of April 6, 2022. |
PARTNERS' EQUITY OF THE PARENT
PARTNERS' EQUITY OF THE PARENT COMPANY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
PARTNERS' EQUITY OF THE PARENT COMPANY | 12. PARTNERS' EQUITY OF THE PARENT COMPANY Earnings per Common Partnership Unit The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding): Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 6,101 $ 6,101 $ 6,964 $ 6,964 Net loss attributable to noncontrolling interests 2 2 1 1 Nonforfeitable dividends allocated to unvested restricted unitholders (148) (148) (146) (146) Net income attributable to common unitholders $ 5,955 $ 5,955 $ 6,819 $ 6,819 Denominator Weighted-average units outstanding 171,927,588 171,927,588 171,606,375 171,606,375 Contingent securities/Share based compensation — 1,594,045 — 1,011,379 Total weighted-average units outstanding 171,927,588 173,521,633 171,606,375 172,617,754 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.03 $ 0.03 $ 0.04 $ 0.04 Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per unit. For the three months ended March 31, 2022 and 2021, earnings representing nonforfeitable dividends were allocated to the unvested restricted units issued to the Parent Company's executives and other employees under the Parent Company's shareholder-approved long-term incentive plan. Common Partnership Units On February 23, 2022, the Operating Partnership declared a distribution of $0.19 per common partnership unit, totaling $32.8 million, which was paid on April 20, 2022 to unitholders of record as of April 6, 2022. 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 three months ended March 31, 2022 and March 31, 2021, the Company did not repurchase any units. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
SHARE BASED COMPENSATION | 13. SHARE BASED COMPENSATION Restricted Share Rights Awards As of March 31, 2022, 777,423 restricted share rights ("Restricted Share Rights") were outstanding under the Company's long term equity incentive plan. These Restricted Share Rights vest over one The following table summarizes the Company’s Restricted Share Rights activity during the three months ended March 31, 2022: Shares Weighted Average Grant Date Fair Value Non-vested at January 1, 2022 474,978 $ 13.51 Granted 306,555 $ 13.30 Vested (3,440) $ 13.30 Forfeited (670) $ 14.96 Non-vested at March 31, 2022 777,423 $ 13.43 On March 3, 2022, the Compensation Committee of the Parent Company’s Board of Trustees awarded to officers of the Company an aggregate of 258,427 Restricted Share Rights, which vest over three years from the grant date. Each Restricted Share Right entitles the holder to one common share upon settlement. The Parent Company pays dividend equivalents on the Restricted Share Rights prior to the settlement date. Vesting and/or settlement would accelerate if the recipient of the award were to die, become disabled or, in the case of certain of such Restricted Share Rights, retire in a qualifying retirement prior to the vesting or settlement date. Qualifying retirement generally means the recipient’s voluntary termination of employment after reaching at least age 57 and accumulating at least 15 years of service with the Company. In addition, vesting would also accelerate if the Parent Company were to undergo a change of control and, on or before the first anniversary of the change of control, the recipient’s employment were to cease due to a termination without cause or resignation with good reason. The Restricted Share Rights granted in 2022, 2021, and 2020 to certain senior executives include an “outperformance feature” whereby additional shares may be earned, up to 200% of the shares subject to the basic award, based on the Company’s achievement of earnings-based targets and development, or investment, based targets during a three-year performance period with an additional 366 days of service generally required to fully vest. In addition to the basic award, up to an aggregate of 406,179, 388,840, and 316,236 shares may be awarded under the outperformance feature for the 2022, 2021, and 2020 awards, respectively, to those senior officers whose Restricted Share Rights awards include the "outperformance feature." As of March 31, 2022, the Company has not recognized any compensation expense related to the outperformance feature for the 2020-2022 awards. The Company will continue to evaluate progression towards achievement of the performance metrics on a quarterly basis and recognize compensation expense for the outperformance feature of these awards should it be determined that achievement of these metrics is probable. In addition, on March 3, 2022, the Compensation Committee awarded non-officer employees an aggregate of 48,128 Restricted Share Rights that generally vest in three equal annual installments. Vesting of these awards is subject to acceleration upon death, disability or termination without cause within one year following a change of control. In accordance with the accounting standard for share-based compensation, the Company amortizes share-based compensation costs through the qualifying retirement dates for those executives and Trustees who meet the conditions for qualifying retirement during the scheduled vesting period and whose award agreements provide for vesting upon a qualifying retirement. Restricted Performance Share Units Plan The Compensation Committee of the Parent Company’s Board of Trustees has granted performance share-based awards (referred to as Restricted Performance Share Units, or RPSUs) to officers of the Parent Company. The RPSUs are settled in common shares, with the number of common shares issuable in settlement determined based on the Company’s total shareholder return over specified measurement periods compared to total shareholder returns of comparative groups over the measurement periods. The table below presents certain information as to unvested RPSU awards. RPSU Grant Date 3/5/2020 3/5/2021 3/3/2022 Total (Amounts below in shares, unless otherwise noted) Non-vested at January 1, 2022 314,055 374,161 — 688,216 Granted — — 516,852 516,852 Non-vested at March 31, 2022 314,055 374,161 516,852 1,205,068 Measurement Period Commencement Date 1/1/2020 1/1/2021 1/1/2022 Measurement Period End Date 12/31/2022 12/31/2023 12/31/2024 Granted 319,600 380,957 516,852 Fair Value of Units on Grant Date (in thousands) $ 5,389 $ 6,389 $ 7,551 The Company values each RPSU on its grant date using a Monte Carlo simulation. The fair values of each award are being amortized over the three year performance period. For the 2020 and 2021 awards, dividend equivalents are credited as additional RPSUs during the performance period, subject to the same terms and conditions as the original RPSUs. The performance period will be abbreviated and the determination and delivery of earned shares will be accelerated in the event of a change in control or if the recipient of the award were to die, become disabled or retire in a qualifying retirement prior to the end of the otherwise applicable three year performance period; provided that, in the case of qualifying retirement for the March 2022, 2021 and 2020 grants, the number of shares deliverable will be pro-rated based on the portion of the performance period actually worked before retirement. In accordance with the accounting standard for share-based compensation, the Company amortizes stock-based compensation costs for the February 2019 grant through the qualifying retirement date for those executives who meet the conditions for qualifying retirement during the scheduled vesting period. For the three months ended March 31, 2022, the Company recognized amortization of the 2022, 2021 and 2020 RPSU awards of $1.2 million, of which $0.1 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the three months ended March 31, 2021, amortization for the 2021, 2020 and 2019 RPSU awards was $0.8 million, of which $0.1 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. The remaining compensation expense to be recognized with respect to the non-vested RPSUs at March 31, 2022 was approximately $12.6 million and is expected to be recognized over a weighted average remaining vesting period of 2.01 years. The Company issued 277,061 common shares on February 1, 2022 in settlement of RPSUs that had been awarded on February 21, 2019 (with a three-year measurement period ended December 31, 2021 ). Holders of these RPSUs also received a cash dividend of $0.19 per share for these common shares on January 19, 2022. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 14. SEGMENT INFORMATION As of March 31, 2022, the Company owns and manages properties within five segments: (1) Philadelphia Central Business District ("Philadelphia CBD"), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Other segment includes properties located in Camden County, New Jersey and New Castle County, Delaware. In addition to the five segments, the corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress is transferred to operating properties by region upon completion of the associated construction or project. The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands): Real estate investments, at cost: March 31, 2022 December 31, 2021 Philadelphia CBD $ 1,494,819 $ 1,460,510 Pennsylvania Suburbs 859,470 866,223 Austin, Texas 791,600 778,145 Metropolitan Washington, D.C. 285,386 280,921 Other 86,720 86,803 Operating Properties $ 3,517,995 $ 3,472,602 Corporate Right of use asset - operating leases, net $ 20,150 $ 20,313 Construction-in-progress $ 283,323 $ 277,237 Land held for development $ 94,411 $ 114,604 Prepaid leasehold interests in land held for development, net $ 27,762 $ 27,762 Net operating income: Three Months Ended March 31, 2022 2021 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Philadelphia CBD $ 53,471 $ (19,743) $ 33,728 $ 51,227 $ (17,411) $ 33,816 Pennsylvania Suburbs 31,807 (10,158) 21,649 31,740 (10,694) 21,046 Austin, Texas 24,915 (10,293) 14,622 26,175 (9,720) 16,455 Metropolitan Washington, D.C. 5,195 (3,428) 1,767 4,675 (4,199) 476 Other 3,604 (2,010) 1,594 3,213 (2,282) 931 Corporate 8,513 (2,286) 6,227 3,739 (2,368) 1,371 Operating properties $ 127,505 $ (47,918) $ 79,587 $ 120,769 $ (46,674) $ 74,095 Unconsolidated real estate ventures: Investment in real estate ventures Equity in income (loss) of real estate venture As of Three Months Ended March 31, March 31, 2022 December 31, 2021 2022 2021 Philadelphia CBD $ 343,502 $ 317,959 $ (2,772) $ (4,279) Metropolitan Washington, D.C. 85,976 85,867 (186) (417) Mid-Atlantic Office JV 31,911 31,680 418 207 MAP Venture (26,834) (24,396) (2,023) (2,435) Total $ 434,555 $ 411,110 $ (4,563) $ (6,924) Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total revenue less property operating expenses, real estate taxes and third party management expenses. Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance and management fees. General and administrative expenses that are not reflected in NOI primarily consist of corporate-level salaries, amortization of share awards and professional fees that are incurred as part of corporate office management. NOI presented by the Company may not be comparable to NOI reported by other companies that define NOI differently. NOI is the primary measure that is used by the Company’s management to evaluate the operating performance of the Company’s real estate assets by segment. The Company believes NOI provides useful information to investors regarding the financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. While NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. NOI does not reflect interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. The Company believes that net income (loss), as defined by GAAP, is the most appropriate earnings measure. The following is a reconciliation of consolidated net income (loss), as defined by GAAP, to consolidated NOI, (in thousands): Three Months Ended March 31, 2022 2021 Net income $ 6,101 $ 6,964 Plus: Interest expense 15,742 16,293 Interest expense - amortization of deferred financing costs 709 709 Depreciation and amortization 43,782 40,343 General and administrative expenses 10,000 6,584 Equity in loss of unconsolidated real estate ventures 4,563 6,924 Less: Interest and investment income 440 1,674 Income tax provision (27) (19) Net gain on disposition of real estate — 74 Net gain on sale of undepreciated real estate 897 1,993 Consolidated net operating income $ 79,587 $ 74,095 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. 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. 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. Debt Guarantees As of March 31, 2022, the Company’s unconsolidated real estate ventures had aggregate indebtedness of $1,217.2 million. These loans are generally mortgage or construction loans, most of which are nonrecourse to the Company, except for customary recourse carve-outs. In addition, during construction undertaken by the unconsolidated real estate ventures, including the 3025 JFK Venture, the Company has provided, and expects to continue to provide, cost overrun and completion guarantees, as well as customary environmental indemnities and guarantees of customary exceptions to nonrecourse provisions in loan agreements. In the agreement with its partner in the 3025 JFK Venture, the Company agreed to provide cost overrun and completion guaranties for the project under development. With respect to the construction loan obtained by 3025 JFK Venture on July 23, 2021, the Company has also provided a carry guarantee and limited payment guarantee up to 25% of the principal balance of the $186.7 million construction loan. Impact of Natural Disasters and Casualty The Company carries liability insurance to mitigate its exposure to certain losses, including those relating to property damage. The Company records the estimated amount of expected insurance proceeds for property damage and other losses incurred as an asset (typically a receivable from the insurer) and income up to the amount of the losses incurred when receipt of insurance proceeds is deemed probable. Any amount of insurance recovery in excess of the amount of the losses is considered a gain contingency and is not recorded until the proceeds are received. In February 2021, one of the Company's properties in Austin, Texas sustained damage from the winter storms and resulting power grid failures. As a result of the damage, during the year ended December 31, 2021, the Company recorded a fixed asset write-off totaling $1.2 million and recorded an estimated $7.2 million of restoration costs, of which $1.9 million is included in Accounts payable and accrued expenses on the consolidated balance sheets as of December 31, 2021. The Company also sustained business interruption loss of $3.9 million related to unpaid rent, which is also fully covered under the insurance policy. During the year ended December 31, 2021, the Company received $15.3 million of insurance proceeds, resulting in full recovery of the costs incurred to date. The $3.0 million of insurance proceeds received in excess of the fixed asset write-off, total business interruption, and total estimated restoration cost during the year ended December 31, 2021 is included in Other income on the consolidated statement of operations. During the three months ended March 31, 2022, the Company recognized a $0.8 million reduction of the previously estimated restoration costs and also received $2.4 million of additional insurance proceeds. The reduction of the restoration costs and additional insurance proceeds are included in Other income on the consolidated statement of operations. Other Commitments or Contingencies Under the terms of each of the One Uptown joint venture agreements, the joint venture partner is not required to fund project costs until the closing of the applicable construction loans. In the event that the Company does not close on the applicable construction loan for each of the joint ventures by June 30, 2022, the joint venture partner could elect to assign its interest in the project to the Company and have no obligation to fund the project costs. In addition, the Company has provided cost overrun and completion guarantees, as well as customary environmental indemnities, in favor of the joint venture partner, for each of the One Uptown joint ventures. In connection with the Schuylkill Yards Project, the Company entered into a neighborhood engagement program and, as of March 31, 2022, had $7.0 million of future fixed contractual obligations. The Company also committed to fund additional contributions under the program. As of March 31, 2022, the Company estimates that these additional contributions, which are not fixed under the terms of agreement, will be $2.3 million. In connection with the formation of the Commerce Square Venture, the Company has committed to investing an additional $20.0 million of preferred equity in the properties on a pari passu basis with its joint venture partner of which $4.7 million has been contributed by the Company as of March 31, 2022. 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. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, the results of its operations for the three months ended March 31, 2022 and 2021 and its cash flows for the three months ended March 31, 2022 and 2021. The results of operations for such interim periods are not necessarily indicative of the results for a full year. These consolidated financial statements should be read in conjunction with the Parent Company’s and the Operating Partnership’s consolidated financial statements and footnotes included in their combined Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 24, 2022. The consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements as of that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The Company's Annual Report on Form 10-K for the year ended December 31, 2021 contains a discussion of its significant accounting policies under Note 2, "Summary of Significant Accounting Policies" . There have been no significant changes in the Company's significant accounting policies since December 31, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments provide practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance is optional and is effective between March 12, 2020 and December 31, 2022. The guidance may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur. |
ORGANIZATION OF THE PARENT CO_2
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Core Portfolio of Operating Properties and Excludes Development, Redevelopment and Held for Sale | The Company’s core portfolio of operating properties (the “Core Properties”) excludes development properties, redevelopment properties, and properties held for sale. The Properties were comprised of the following as of March 31, 2022: Number of Properties Rentable Square Feet Office properties 72 12,097,300 Mixed-use properties 5 942,334 Core Properties 77 13,039,634 Development property 1 205,803 Redevelopment properties 3 432,699 The Properties 81 13,678,136 |
REAL ESTATE INVESTMENTS (Tables
REAL ESTATE INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Gross Carrying Value of Operating Properties | As of March 31, 2022 and December 31, 2021, the gross carrying value of the operating properties was as follows (in thousands): March 31, 2022 December 31, 2021 Land $ 410,103 $ 410,144 Building and improvements 2,696,233 2,653,492 Tenant improvements 411,659 408,966 Total $ 3,517,995 $ 3,472,602 |
Summary of Properties Acquired | The following table summarizes the property acquisitions during the three months ended March 31, 2022 (dollars in thousands): Property/Portfolio Name Acquisition Date Location Property Type Rentable Square Feet/Acres Purchase Price 631 Park Avenue January 21, 2022 King of Prussia, PA Land 3.3 acres $ 3,650 |
Summary of Properties Sold | The following table summarizes the property dispositions during the three months ended March 31, 2022 (dollars in thousands): Property/Portfolio Name Disposition Date Location Property Type Rentable Square Feet/Acres Sales Price Gain/(Loss) on Sale (a) Gateway G & H January 20, 2022 Richmond, VA Land 10.0 acres $ 1,600 $ 897 (a) Gain/(Loss) on Sale is net of closing and other transaction related costs. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Financial Position of Real Estate Ventures | The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Net property $ 1,939,193 $ 1,563,263 Other assets 519,361 434,687 Other liabilities 403,715 331,947 Debt, net 1,210,476 956,668 Equity (a) 844,363 709,335 (a) This amount does not include the effect of the basis difference between the Company's historical cost basis and the basis recorded at the real estate venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from the impairment of investments, purchases of third party interests in existing real estate ventures and upon the transfer of assets that were previously owned by the Company into a real estate venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the real estate venture level. |
Summary of Results Of Unconsolidated Real Estate Ventures | The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the three month periods ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, 2022 2021 Revenue $ 53,216 $ 53,357 Operating expenses (28,592) (28,987) Interest expense, net (7,469) (7,374) Depreciation and amortization (21,283) (24,893) Net loss $ (4,128) $ (7,897) Ownership interest % Various Various Company's share of net loss $ (4,617) $ (6,541) Basis adjustments and other 54 (383) Equity in loss of unconsolidated real estate ventures $ (4,563) $ (6,924) |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Lease Income | The table below sets forth the allocation of lease revenue between fixed contractual payments and variable lease payments for the three months ended March 31, 2022 and 2021 (in thousands): Three Months Ended March 31, Lease Revenue 2022 2021 Fixed contractual payments $ 88,763 $ 86,380 Variable lease payments 24,331 24,148 Total $ 113,094 $ 110,528 |
INTANGIBLE ASSETS AND LIABILI_2
INTANGIBLE ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | As of March 31, 2022 and December 31, 2021, the Company’s intangible assets/liabilities were comprised of the following (in thousands): March 31, 2022 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 63,601 $ (38,245) $ 25,356 Tenant relationship value 167 (98) 69 Above market leases acquired 486 (331) 155 Total intangible assets, net $ 64,254 $ (38,674) $ 25,580 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 24,485 $ (12,400) $ 12,085 December 31, 2021 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 72,376 $ (44,066) $ 28,310 Tenant relationship value 167 (97) 70 Above market leases acquired 486 (310) 176 Total intangible assets, net $ 73,029 $ (44,473) $ 28,556 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 27,025 $ (14,044) $ 12,981 |
Summary of Amortization for Intangible Assets and Liabilities | As of March 31, 2022, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands): Assets Liabilities 2022 (nine months remaining) $ 6,665 $ 1,691 2023 6,724 1,540 2024 4,433 1,321 2025 3,255 1,044 2026 1,195 754 Thereafter 3,308 5,735 Total $ 25,580 $ 12,085 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Consolidated Debt Obligations | The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of March 31, 2022 and December 31, 2021 (in thousands): March 31, 2022 December 31, 2021 Effective Maturity UNSECURED DEBT $600 million Unsecured Credit Facility $ 156,000 $ 23,000 LIBOR + 1.10% July 2022 (a) Term Loan - Swapped to fixed 250,000 250,000 2.87% October 2022 $350.0M 3.95% Guaranteed Notes due 2023 350,000 350,000 3.87% February 2023 $350.0M 4.10% Guaranteed Notes due 2024 350,000 350,000 3.78% October 2024 $450.0M 3.95% Guaranteed Notes due 2027 450,000 450,000 4.03% November 2027 $350.0M 4.55% Guaranteed Notes due 2029 350,000 350,000 4.30% October 2029 Indenture IA (Preferred Trust I) 27,062 27,062 LIBOR + 1.25% March 2035 Indenture IB (Preferred Trust I) 25,774 25,774 LIBOR + 1.25% April 2035 Indenture II (Preferred Trust II) 25,774 25,774 LIBOR + 1.25% July 2035 Principal balance outstanding 1,984,610 1,851,610 Plus: original issue premium (discount), net 7,699 8,187 Less: deferred financing costs (5,726) (6,211) Total unsecured indebtedness $ 1,986,583 $ 1,853,586 (a) The Company has the right to extend the term of the Unsecured Credit Facility until July 2023 through two successive six-month extension options. The extension fees amount to 0.0625% and 0.0750% of the $600.0 million borrowing capacity for the first and second six-month extension, respectively. |
Schedule of Maturities of Long-term Debt | As of March 31, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2022 (nine months remaining) $ 406,000 2023 350,000 2024 350,000 2025 — 2026 — Thereafter 878,610 Total principal payments 1,984,610 Net unamortized premiums/(discounts) 7,699 Net deferred financing costs (5,726) Outstanding indebtedness $ 1,986,583 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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): March 31, 2022 December 31, 2021 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,502,235 $ 1,515,265 $ 1,502,368 $ 1,588,780 Variable rate debt $ 484,348 $ 466,999 $ 351,218 $ 344,754 Notes receivable (b) $ 44,430 $ 44,862 $ 44,430 $ 45,230 (a) Net of deferred financing costs of $5.5 million and $5.8 million for unsecured notes payable and $0.3 million and $0.4 million for variable rate debt as of March 31, 2022 and December 31, 2021. |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and December 31, 2021. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time, but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands). Hedge Product Hedge Type Designation Notional Amount Strike Trade Date Maturity Date Fair value 3/31/2022 12/31/2021 3/31/2022 12/31/2021 Liabilities Swap Interest Rate Cash Flow (a) $ 250,000 $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ (545) $ (2,461) $ 250,000 $ 250,000 (a) Hedging unsecured variable rate debt. |
BENEFICIARIES' EQUITY OF THE _2
BENEFICIARIES' EQUITY OF THE PARENT COMPANY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Earnings Per Share (EPS), Basic and Diluted | The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding): Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 6,101 $ 6,101 $ 6,964 $ 6,964 Net income attributable to noncontrolling interests (8) (8) (43) (43) Nonforfeitable dividends allocated to unvested restricted shareholders (148) (148) (146) (146) Net income attributable to common shareholders $ 5,945 $ 5,945 $ 6,775 $ 6,775 Denominator Weighted-average shares outstanding 171,294,949 171,294,949 170,624,741 170,624,741 Contingent securities/Share based compensation — 1,594,045 — 1,011,379 Weighted-average shares outstanding 171,294,949 172,888,994 170,624,741 171,636,120 Earnings per Common Share: Net income attributable to common shareholders $ 0.03 $ 0.03 $ 0.04 $ 0.04 The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding): Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 6,101 $ 6,101 $ 6,964 $ 6,964 Net loss attributable to noncontrolling interests 2 2 1 1 Nonforfeitable dividends allocated to unvested restricted unitholders (148) (148) (146) (146) Net income attributable to common unitholders $ 5,955 $ 5,955 $ 6,819 $ 6,819 Denominator Weighted-average units outstanding 171,927,588 171,927,588 171,606,375 171,606,375 Contingent securities/Share based compensation — 1,594,045 — 1,011,379 Total weighted-average units outstanding 171,927,588 173,521,633 171,606,375 172,617,754 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.03 $ 0.03 $ 0.04 $ 0.04 |
PARTNERS' EQUITY OF THE PAREN_2
PARTNERS' EQUITY OF THE PARENT COMPANY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Schedule of Earnings Per Share (EPS), Basic and Diluted | The following table details the number of shares and net income used to calculate basic and diluted earnings per share (in thousands, except share and per share amounts; results may not add due to rounding): Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 6,101 $ 6,101 $ 6,964 $ 6,964 Net income attributable to noncontrolling interests (8) (8) (43) (43) Nonforfeitable dividends allocated to unvested restricted shareholders (148) (148) (146) (146) Net income attributable to common shareholders $ 5,945 $ 5,945 $ 6,775 $ 6,775 Denominator Weighted-average shares outstanding 171,294,949 171,294,949 170,624,741 170,624,741 Contingent securities/Share based compensation — 1,594,045 — 1,011,379 Weighted-average shares outstanding 171,294,949 172,888,994 170,624,741 171,636,120 Earnings per Common Share: Net income attributable to common shareholders $ 0.03 $ 0.03 $ 0.04 $ 0.04 The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding): Three Months Ended March 31, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 6,101 $ 6,101 $ 6,964 $ 6,964 Net loss attributable to noncontrolling interests 2 2 1 1 Nonforfeitable dividends allocated to unvested restricted unitholders (148) (148) (146) (146) Net income attributable to common unitholders $ 5,955 $ 5,955 $ 6,819 $ 6,819 Denominator Weighted-average units outstanding 171,927,588 171,927,588 171,606,375 171,606,375 Contingent securities/Share based compensation — 1,594,045 — 1,011,379 Total weighted-average units outstanding 171,927,588 173,521,633 171,606,375 172,617,754 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.03 $ 0.03 $ 0.04 $ 0.04 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Company's Restricted Share Activity | The following table summarizes the Company’s Restricted Share Rights activity during the three months ended March 31, 2022: Shares Weighted Average Grant Date Fair Value Non-vested at January 1, 2022 474,978 $ 13.51 Granted 306,555 $ 13.30 Vested (3,440) $ 13.30 Forfeited (670) $ 14.96 Non-vested at March 31, 2022 777,423 $ 13.43 |
Schedule of Restricted Performance Share Units Plan | The table below presents certain information as to unvested RPSU awards. RPSU Grant Date 3/5/2020 3/5/2021 3/3/2022 Total (Amounts below in shares, unless otherwise noted) Non-vested at January 1, 2022 314,055 374,161 — 688,216 Granted — — 516,852 516,852 Non-vested at March 31, 2022 314,055 374,161 516,852 1,205,068 Measurement Period Commencement Date 1/1/2020 1/1/2021 1/1/2022 Measurement Period End Date 12/31/2022 12/31/2023 12/31/2024 Granted 319,600 380,957 516,852 Fair Value of Units on Grant Date (in thousands) $ 5,389 $ 6,389 $ 7,551 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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: March 31, 2022 December 31, 2021 Philadelphia CBD $ 1,494,819 $ 1,460,510 Pennsylvania Suburbs 859,470 866,223 Austin, Texas 791,600 778,145 Metropolitan Washington, D.C. 285,386 280,921 Other 86,720 86,803 Operating Properties $ 3,517,995 $ 3,472,602 Corporate Right of use asset - operating leases, net $ 20,150 $ 20,313 Construction-in-progress $ 283,323 $ 277,237 Land held for development $ 94,411 $ 114,604 Prepaid leasehold interests in land held for development, net $ 27,762 $ 27,762 Net operating income: Three Months Ended March 31, 2022 2021 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Philadelphia CBD $ 53,471 $ (19,743) $ 33,728 $ 51,227 $ (17,411) $ 33,816 Pennsylvania Suburbs 31,807 (10,158) 21,649 31,740 (10,694) 21,046 Austin, Texas 24,915 (10,293) 14,622 26,175 (9,720) 16,455 Metropolitan Washington, D.C. 5,195 (3,428) 1,767 4,675 (4,199) 476 Other 3,604 (2,010) 1,594 3,213 (2,282) 931 Corporate 8,513 (2,286) 6,227 3,739 (2,368) 1,371 Operating properties $ 127,505 $ (47,918) $ 79,587 $ 120,769 $ (46,674) $ 74,095 Unconsolidated real estate ventures: Investment in real estate ventures Equity in income (loss) of real estate venture As of Three Months Ended March 31, March 31, 2022 December 31, 2021 2022 2021 Philadelphia CBD $ 343,502 $ 317,959 $ (2,772) $ (4,279) Metropolitan Washington, D.C. 85,976 85,867 (186) (417) Mid-Atlantic Office JV 31,911 31,680 418 207 MAP Venture (26,834) (24,396) (2,023) (2,435) Total $ 434,555 $ 411,110 $ (4,563) $ (6,924) |
Reconciliation of Consolidated Net Income to Consolidated NOI | The following is a reconciliation of consolidated net income (loss), as defined by GAAP, to consolidated NOI, (in thousands): Three Months Ended March 31, 2022 2021 Net income $ 6,101 $ 6,964 Plus: Interest expense 15,742 16,293 Interest expense - amortization of deferred financing costs 709 709 Depreciation and amortization 43,782 40,343 General and administrative expenses 10,000 6,584 Equity in loss of unconsolidated real estate ventures 4,563 6,924 Less: Interest and investment income 440 1,674 Income tax provision (27) (19) Net gain on disposition of real estate — 74 Net gain on sale of undepreciated real estate 897 1,993 Consolidated net operating income $ 79,587 $ 74,095 |
ORGANIZATION OF THE PARENT CO_3
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP- Narrative (Details) | 3 Months Ended |
Mar. 31, 2022aft²propertyparcel | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of real estate properties | property | 81 |
Rentable area (in square feet) | 13,678,136 |
Unconsolidated Properties | Unconsolidated Real Estate Ventures | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of real estate 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 | 169.4 |
Area of land held for sale | a | 0.8 |
Lease agreement term | 99 years |
Area of additional undeveloped parcels of land with option to purchase (in acres) | a | 55.5 |
Total potential development capacity (in square feet) | 13,400,000 |
Parent Company | Parcel of land | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term | 99 years |
Parent Company | 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 | 0.8 |
Number of parcels of land | parcel | 1 |
Wholly-owned Management Company Subsidiaries | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Rentable area (in square feet) | 23,100,000 |
Wholly-owned Management Company Subsidiaries | Wholly Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Rentable area (in square feet) | 13,700,000 |
Wholly-owned Management Company Subsidiaries | Partially Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Rentable area (in square feet) | 9,400,000 |
Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 99.70% |
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) | Mar. 31, 2022ft²property |
Real Estate Properties [Line Items] | |
Number of Properties | property | 81 |
Rentable area (in square feet) | ft² | 13,678,136 |
Office properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 72 |
Rentable area (in square feet) | ft² | 12,097,300 |
Mixed-use properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 5 |
Rentable area (in square feet) | ft² | 942,334 |
Core Properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 77 |
Rentable area (in square feet) | ft² | 13,039,634 |
Development property | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 1 |
Rentable area (in square feet) | ft² | 205,803 |
Redevelopment properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 3 |
Rentable area (in square feet) | ft² | 432,699 |
REAL ESTATE INVESTMENTS - Gross
REAL ESTATE INVESTMENTS - Gross Carrying Value of Operating Properties (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 410,103 | $ 410,144 |
Building and improvements | 2,696,233 | 2,653,492 |
Tenant improvements | 411,659 | 408,966 |
Total | $ 3,517,995 | $ 3,472,602 |
REAL ESTATE INVESTMENTS - Summa
REAL ESTATE INVESTMENTS - Summary of Properties Acquired (Details) $ in Thousands | Jan. 21, 2022USD ($)a | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Real Estate [Line Items] | |||
Purchase Price | $ 3,446 | $ 0 | |
Land | 631 Park Avenue | |||
Real Estate [Line Items] | |||
Rentable Square Feet/Acres | a | 3.3 | ||
Purchase Price | $ 3,650 |
REAL ESTATE INVESTMENTS - Sum_2
REAL ESTATE INVESTMENTS - Summary of Property Dispositions (Details) $ in Thousands | Jan. 20, 2022USD ($)a | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain (Loss) on Sale | $ 0 | $ 74 | |
Land | Gateway G & H | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Rentable Square Feet/Acres | a | 10 | ||
Sales Price | $ 1,600 | ||
Gain (Loss) on Sale | $ 897 |
REAL ESTATE INVESTMENTS - Textu
REAL ESTATE INVESTMENTS - Textual (Details) $ in Thousands | Apr. 14, 2022USD ($) | Mar. 31, 2022USD ($)ft²aparcel | Dec. 31, 2021USD ($) | Dec. 01, 2021USD ($)ft²propertyapartment |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Investment in real estate ventures | $ 434,555 | $ 411,110 | ||
Rentable area (in square feet) | ft² | 13,678,136 | |||
Principal balance outstanding | $ 1,984,610 | |||
Assets held for sale, net | 25,205 | $ 562 | ||
Held-for-sale | Other - Land | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, net | $ 25,200 | |||
Held-for-sale | Other - Land | Metropolitan Washington, D.C. Segment | ||||
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 | 0.8 | |||
Held-for-sale | Other - Land | Metropolitan Washington, D.C. Segment | Subsequent Event | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of land | $ 29,700 | |||
One Uptown Venture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Investment in real estate ventures | $ 328,400 | |||
Number of apartment residence | apartment | 341 | |||
Joint venture, funding committed by other party | $ 57,500 | |||
Construction loan, percentage of total cost | 65.00% | |||
One Uptown Venture | Construction Loans | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Principal balance outstanding | $ 213,400 | |||
One Uptown Venture | Preferred Stock | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
One Uptown Venture | Common Stock | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
One Uptown Venture | Class A Workspace | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Rentable area (in square feet) | ft² | 348,000 | |||
One Uptown Venture | Street Level Retail | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Rentable area (in square feet) | ft² | 15,000 | |||
Canyon Partners Real Estate | One Uptown Venture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of joint ventures | property | 2 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Narrative (Details) $ in Thousands | Mar. 17, 2022USD ($)ft² | Mar. 31, 2022USD ($)ft²apropertyapartment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Number of real estate properties | property | 81 | |||
Investment in unconsolidated real estate ventures | $ 461,389 | $ 435,506 | ||
Accounts receivable | $ 14,214 | 11,875 | ||
Rentable area (in square feet) | ft² | 13,678,136 | |||
Purchase Price | $ 3,446 | $ 0 | ||
Real Estate Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Accounts receivable | 2,600 | $ 2,500 | ||
Management Fees | Real Estate Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Service and other revenue | 1,900 | 2,000 | ||
Leasing Commission Income | Real Estate Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Service and other revenue | 400 | $ 1,300 | ||
Unconsolidated Real Estate Ventures | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated real estate ventures | $ 434,600 | |||
Unconsolidated Real Estate Ventures | Minimum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 15.00% | |||
Unconsolidated Real Estate Ventures | Maximum | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 70.00% | |||
Unconsolidated Real Estate Ventures | Office properties | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of unconsolidated investments in Real Estate Ventures | property | 5 | |||
Rentable area (in square feet) | ft² | 9,100,000 | |||
Unconsolidated Real Estate Ventures | Other Liabilities | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investment in unconsolidated real estate ventures | $ 26,800 | |||
Unconsolidated Real Estate Ventures | Unconsolidated Properties | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of real estate properties | property | 10 | |||
Number of properties with negative investment balances | property | 1 | |||
Unconsolidated Real Estate Ventures | Land Held For Development | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of unconsolidated investments in Real Estate Ventures | property | 2 | |||
Area of land (in acres) | a | 1.4 | |||
Unconsolidated Real Estate Ventures | Land Under Active Development | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of unconsolidated investments in Real Estate Ventures | property | 1 | |||
Area of land (in acres) | a | 1 | |||
Unconsolidated Real Estate Ventures | Mixed Use Tower | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of unconsolidated investments in Real Estate Ventures | property | 1 | |||
Rentable area (in square feet) | ft² | 200,000 | |||
Number of apartment units (in units) | apartment | 250 | |||
Unconsolidated Real Estate Ventures | Residential Tower | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Number of unconsolidated investments in Real Estate Ventures | property | 1 | |||
Number of apartment units (in units) | apartment | 321 | |||
Cira Square REIT, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment, ownership percentage | 20.00% | |||
Gross purchase price | $ 383,000 | |||
Purchase Price | 28,600 | |||
Cira Square REIT, LLC | Secured Debt | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Debt instrument, face amount | $ 257,700 | |||
Cira Square REIT, LLC | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Spread on variable rate | 3.50% | |||
Cira Square REIT, LLC | Office properties | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Rentable area (in square feet) | ft² | 862,692 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Summary of Financial Position of Real Estate Ventures (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||||
Net property | $ 2,962,781 | $ 2,955,068 | ||
Other assets | 148,493 | 133,094 | ||
Other liabilities | 49,705 | 48,683 | ||
Debt, net | 1,986,583 | |||
Equity | 1,675,863 | 1,701,219 | $ 1,782,254 | $ 1,804,648 |
Investment In Nonconsolidated Real Estate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net property | 1,939,193 | 1,563,263 | ||
Other assets | 519,361 | 434,687 | ||
Other liabilities | 403,715 | 331,947 | ||
Debt, net | 1,210,476 | 956,668 | ||
Equity | $ 844,363 | $ 709,335 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Summary of Results of Operations of Real Estate Ventures with Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 127,505 | $ 120,769 |
Operating expenses | (101,700) | (93,601) |
Interest expense | (15,742) | (16,293) |
Depreciation and amortization | (43,782) | (40,343) |
Net income | 6,101 | 6,964 |
Equity in loss of unconsolidated real estate ventures | (4,563) | (6,924) |
Investment In Nonconsolidated Real Estate | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 53,216 | 53,357 |
Operating expenses | (28,592) | (28,987) |
Interest expense | (7,469) | (7,374) |
Depreciation and amortization | (21,283) | (24,893) |
Net income | (4,128) | (7,897) |
Company's share of net loss | (4,617) | (6,541) |
Basis adjustments and other | 54 | (383) |
Equity in loss of unconsolidated real estate ventures | $ (4,563) | $ (6,924) |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Fixed contractual payments | $ 88,763 | $ 86,380 |
Variable lease payments | 24,331 | 24,148 |
Total | $ 113,094 | $ 110,528 |
INTANGIBLE ASSETS AND LIABILI_3
INTANGIBLE ASSETS AND LIABILITIES - Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Intangible assets, total cost | $ 64,254 | $ 73,029 |
Intangible assets, accumulated amortization | (38,674) | (44,473) |
Intangible Assets, net | 25,580 | 28,556 |
Intangible liabilities, total cost | 24,485 | 27,025 |
Intangible liabilities, accumulated amortization | (12,400) | (14,044) |
Intangible Liabilities, net | 12,085 | 12,981 |
In-place lease value | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 63,601 | 72,376 |
Intangible assets, accumulated amortization | (38,245) | (44,066) |
Intangible Assets, net | 25,356 | 28,310 |
Tenant relationship value | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 167 | 167 |
Intangible assets, accumulated amortization | (98) | (97) |
Intangible Assets, net | 69 | 70 |
Above market leases acquired | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 486 | 486 |
Intangible assets, accumulated amortization | (331) | (310) |
Intangible Assets, net | $ 155 | $ 176 |
INTANGIBLE ASSETS AND LIABILI_4
INTANGIBLE ASSETS AND LIABILITIES - Annual Amortization of Intangible Assets, Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
2022 (nine months remaining) | $ 6,665 | |
2023 | 6,724 | |
2024 | 4,433 | |
2025 | 3,255 | |
2026 | 1,195 | |
Thereafter | 3,308 | |
Intangible Assets, net | 25,580 | $ 28,556 |
Liabilities | ||
2022 (nine months remaining) | 1,691 | |
2023 | 1,540 | |
2024 | 1,321 | |
2025 | 1,044 | |
2026 | 754 | |
Thereafter | 5,735 | |
Intangible Liabilities, net | $ 12,085 | $ 12,981 |
DEBT OBLIGATIONS - Consolidated
DEBT OBLIGATIONS - Consolidated Debt Obligations Outstanding (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)property | Dec. 31, 2021USD ($) | |
Consolidated debt obligations | ||
Principal balance outstanding | $ 1,984,610,000 | |
Plus: original issue premium (discount), net | (7,699,000) | |
Less: deferred financing costs | (5,726,000) | |
Debt, net | 1,986,583,000 | |
Unsecured Debt | ||
Consolidated debt obligations | ||
Principal balance outstanding | 1,984,610,000 | $ 1,851,610,000 |
Plus: original issue premium (discount), net | 7,699,000 | 8,187,000 |
Less: deferred financing costs | (5,726,000) | (6,211,000) |
Debt, net | 1,986,583,000 | 1,853,586,000 |
Unsecured Debt | $600 million Unsecured Credit Facility | ||
Consolidated debt obligations | ||
Debt instrument, face amount | 600,000,000 | |
Principal balance outstanding | $ 156,000,000 | 23,000,000 |
Number of extensions | property | 2 | |
Extension term | 6 months | |
Debt extension fees for first six months, percentage | 0.0625% | |
Debt extension fees for next six months, percentage | 0.075% | |
Unsecured Debt | $600 million Unsecured Credit Facility | LIBOR | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.10% | |
Unsecured Debt | Term Loan - Swapped to fixed | ||
Consolidated debt obligations | ||
Principal balance outstanding | $ 250,000,000 | 250,000,000 |
Effective interest rate | 2.87% | |
Unsecured Debt | $350.0M 3.95% Guaranteed Notes due 2023 | ||
Consolidated debt obligations | ||
Debt instrument, face amount | $ 350,000,000 | |
Debt instrument, interest rate, stated percentage | 3.95% | |
Principal balance outstanding | $ 350,000,000 | 350,000,000 |
Effective interest rate | 3.87% | |
Unsecured Debt | $350.0M 4.10% Guaranteed Notes due 2024 | ||
Consolidated debt obligations | ||
Debt instrument, face amount | $ 350,000,000 | |
Debt instrument, interest rate, stated percentage | 4.10% | |
Principal balance outstanding | $ 350,000,000 | 350,000,000 |
Effective interest rate | 3.78% | |
Unsecured Debt | $450.0M 3.95% Guaranteed Notes due 2027 | ||
Consolidated debt obligations | ||
Debt instrument, face amount | $ 450,000,000 | |
Debt instrument, interest rate, stated percentage | 3.95% | |
Principal balance outstanding | $ 450,000,000 | 450,000,000 |
Effective interest rate | 4.03% | |
Unsecured Debt | $350.0M 4.55% Guaranteed Notes due 2029 | ||
Consolidated debt obligations | ||
Debt instrument, face amount | $ 350,000,000 | |
Debt instrument, interest rate, stated percentage | 4.55% | |
Principal balance outstanding | $ 350,000,000 | 350,000,000 |
Effective interest rate | 4.30% | |
Unsecured Debt | Indenture IA (Preferred Trust I) | ||
Consolidated debt obligations | ||
Principal balance outstanding | $ 27,062,000 | 27,062,000 |
Unsecured Debt | Indenture IA (Preferred Trust I) | LIBOR | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.25% | |
Unsecured Debt | Indenture IB (Preferred Trust I) | ||
Consolidated debt obligations | ||
Principal balance outstanding | $ 25,774,000 | 25,774,000 |
Unsecured Debt | Indenture IB (Preferred Trust I) | LIBOR | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.25% | |
Unsecured Debt | Indenture II (Preferred Trust II) | ||
Consolidated debt obligations | ||
Principal balance outstanding | $ 25,774,000 | $ 25,774,000 |
Unsecured Debt | Indenture II (Preferred Trust II) | LIBOR | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.25% |
DEBT OBLIGATIONS - Textual (Det
DEBT OBLIGATIONS - Textual (Details) - Revolving Credit Facility | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity (up to) | $ 600,000,000 |
Weighted average interest rate | 1.30% |
Interest expense, debt | $ 300,000 |
LIBOR | |
Debt Instrument [Line Items] | |
Spread on variable rate | 1.10% |
DEBT OBLIGATIONS - Aggregate Sc
DEBT OBLIGATIONS - Aggregate Scheduled Principal Payments of Debt Obligation, Excluding Amortization of Discounts and Premiums (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
2022 (nine months remaining) | $ 406,000 |
2023 | 350,000 |
2024 | 350,000 |
2025 | 0 |
2026 | 0 |
Thereafter | 878,610 |
Total principal payments | 1,984,610 |
Net unamortized premiums/(discounts) | 7,699 |
Net deferred financing costs | (5,726) |
Debt, net | $ 1,986,583 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred financing costs, net | $ 5,726 | |
Unsecured notes payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred financing costs, net | 5,726 | $ 6,211 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable | 44,430 | 44,430 |
Carrying Amount | Unsecured notes payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured notes payable | 1,502,235 | 1,502,368 |
Deferred financing costs, net | 5,500 | 5,800 |
Carrying Amount | Variable rate debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate debt | 484,348 | 351,218 |
Deferred financing costs, net | 300 | 400 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, fair value | 44,862 | 45,230 |
Fair Value | Unsecured notes payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 1,515,265 | 1,588,780 |
Fair Value | Variable rate debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 466,999 | $ 344,754 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Textual (Details) - Brandywine 1919 Ventures - USD ($) $ in Millions | Dec. 31, 2021 | Jun. 26, 2018 |
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 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 250,000,000 | $ 250,000,000 |
Swap | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 250,000,000 | 250,000,000 |
Strike | 2.868% | |
Fair value | $ (545,000) | $ (2,461,000) |
LIMITED PARTNERS' NONCONTROLL_2
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Redemption of limited partnership units | $ 4,006 | $ 0 | |
Aggregate amount related to non-controlling interests classified within equity | 5,000 | $ 8,200 | |
Settlement value of non controlling interest in operating partnership | $ 7,300 | $ 11,100 | |
General Partner Capital | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Repurchase and retirement of LP units (in shares) | 307,516 |
BENEFICIARIES' EQUITY OF THE _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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net income | $ 6,101 | $ 6,964 |
Net income attributable to noncontrolling interests | (8) | (43) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (148) | (146) |
Net income attributable to noncontrolling interests, Diluted | (8) | (43) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (148) | (146) |
Net income attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | 5,945 | 6,775 |
Net income attributable to common shareholders, diluted | $ 5,945 | $ 6,775 |
Denominator | ||
Weighted average units outstanding, basic (in shares) | 171,294,949 | 170,624,741 |
Contingent securities/Share based compensation (in shares) | 1,594,045 | 1,011,379 |
Weighted average units outstanding, diluted (in shares) | 172,888,994 | 171,636,120 |
Earnings per Common Share: | ||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.03 | $ 0.04 |
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.03 | $ 0.04 |
BENEFICIARIES' EQUITY OF THE _4
BENEFICIARIES' EQUITY OF THE PARENT COMPANY - Narrative (Details) - USD ($) | Apr. 20, 2022 | Feb. 23, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Jan. 03, 2019 |
Class of Stock [Line Items] | |||||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | ||
Dividends, common stock | $ 32,800,000 | ||||
Stock repurchase program, authorized amount | $ 150,000,000 | ||||
Shares repurchased and retired (in shares) | 0 | 0 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Dividends paid in cash (in dollars per share) | $ 0.19 | ||||
Redeemable Common Limited Partnership Units | |||||
Class of Stock [Line Items] | |||||
Redeemable common limited partnership units (in shares) | 516,467 | 981,634 |
PARTNERS' EQUITY OF THE PAREN_3
PARTNERS' EQUITY OF THE PARENT COMPANY- Number of Units and Net Income Used to Calculate Basic and Diluted Earnings Per Common Partnership Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||
Net income | $ 6,101 | $ 6,964 |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (148) | (146) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | $ (148) | $ (146) |
Denominator | ||
Weighted average units outstanding, basic (in shares) | 171,294,949 | 170,624,741 |
Contingent securities/Share based compensation (in shares) | 1,594,045 | 1,011,379 |
Weighted average units outstanding, diluted (in shares) | 172,888,994 | 171,636,120 |
Earnings per Common Partnership Unit: | ||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.03 | $ 0.04 |
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.03 | $ 0.04 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Numerator | ||
Net income | $ 6,101 | $ 6,964 |
Net (income) loss attributable to noncontrolling interests | 2 | 1 |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (148) | (146) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (148) | (146) |
Net income (loss) attributable to common unitholders, Basic | 5,955 | 6,819 |
Net income (loss) attributable to common unitholders, Diluted | $ 5,955 | $ 6,819 |
Denominator | ||
Weighted average units outstanding, basic (in shares) | 171,927,588 | 171,606,375 |
Contingent securities/Share based compensation (in shares) | 1,594,045 | 1,011,379 |
Weighted average units outstanding, diluted (in shares) | 173,521,633 | 172,617,754 |
Earnings per Common Partnership Unit: | ||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.03 | $ 0.04 |
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.03 | $ 0.04 |
PARTNERS' EQUITY OF THE PAREN_4
PARTNERS' EQUITY OF THE PARENT COMPANY - Textual (Details) $ / shares in Units, $ in Millions | Apr. 20, 2022$ / shares | Feb. 23, 2022USD ($)$ / shares | Mar. 31, 2022$ / shares | Mar. 31, 2021$ / shares |
Earnings Per Common Partnership Unit [Line Items] | ||||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | |
Dividends, common stock | $ | $ 32.8 | |||
Subsequent Event | ||||
Earnings Per Common Partnership Unit [Line Items] | ||||
Dividends paid in cash (in dollars per share) | $ 0.19 | |||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Earnings Per Common Partnership Unit [Line Items] | ||||
Dividends, common stock | $ | $ 32.8 | |||
Repurchase program, ratio 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] | ||||
Distributions declared (in dollars per share) | $ 0.19 |
SHARE BASED COMPENSATION - Narr
SHARE BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions | Mar. 03, 2022installmentshares | Feb. 01, 2022shares | Jan. 19, 2022$ / shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($) | Dec. 31, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Voluntary termination of employment age limit | 57 | |||||
Number of vesting installments | installment | 3 | |||||
Vesting acceleration period | 1 year | |||||
Restricted Share Rights Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted share rights outstanding (in shares) | shares | 777,423 | 474,978 | ||||
Unrecognized compensation expenses | $ | $ 3.5 | |||||
Weighted average period over which options will be recognized | 1 year 1 month 24 days | |||||
Share-based compensation expense | $ | $ 2.5 | $ 2.3 | ||||
Share-based compensation expense, capitalized | $ | $ 0.3 | $ 0.3 | ||||
Granted (in shares) | shares | 258,427 | 306,555 | ||||
Ratio of restricted share right will get settled for common share | 1 | |||||
Accumulated service period for voluntary termination | 15 years | |||||
Restricted Share Rights Awards | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted Share Rights Awards | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | 3 years | ||||
Restricted Performance Share Units Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Unrecognized compensation expenses | $ | $ 12.6 | |||||
Weighted average period over which options will be recognized | 2 years 3 days | |||||
Share-based compensation expense | $ | $ 1.2 | $ 0.8 | ||||
Share-based compensation expense, capitalized | $ | $ 0.1 | $ 0.1 | ||||
Share-based compensation activity (in shares) | shares | 277,061 | |||||
Dividends paid in cash (in dollars per share) | $ / shares | $ 0.19 | |||||
Restricted Performance Share Units Plan | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted share rights outstanding (in shares) | shares | 1,205,068 | 688,216 | ||||
Granted (in shares) | shares | 516,852 | |||||
Performance earning potential | 200.00% | |||||
Outperformance feature measurement term | 3 years | |||||
Vesting period after outperformance feature measurement term | 366 days | |||||
Restricted Performance Share Units Plan | Executive Officer | 2022 Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards issuable under outperformance feature (in shares) | shares | 406,179 | |||||
Share-based compensation expense recognized to date | $ | $ 0 | |||||
Restricted Performance Share Units Plan | Executive Officer | 2021 Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards issuable under outperformance feature (in shares) | shares | 388,840 | |||||
Share-based compensation expense recognized to date | $ | $ 0 | |||||
Restricted Performance Share Units Plan | Executive Officer | 2020 Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards issuable under outperformance feature (in shares) | shares | 316,236 | |||||
Share-based compensation expense recognized to date | $ | $ 0 | |||||
Restricted Performance Share Units Plan | Non Officer Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted share rights outstanding (in shares) | shares | 48,128 |
SHARE BASED COMPENSATION - Rest
SHARE BASED COMPENSATION - Restricted Share Activity (Details) - Restricted Share Rights Awards - $ / shares | Mar. 03, 2022 | Mar. 31, 2022 |
Shares | ||
Beginning balance (in shares) | 474,978 | |
Granted (in shares) | 258,427 | 306,555 |
Vested (in shares) | (3,440) | |
Forfeited (in shares) | (670) | |
Ending balance (in shares) | 777,423 | |
Weighted Average Grant Date Fair Value | ||
Non-vested at beginning of year (in dollars per shares) | $ 13.51 | |
Granted (in dollars per shares) | 13.30 | |
Vested (in dollars per shares) | 13.30 | |
Forfeited (in dollars per shares) | 14.96 | |
Non-vested at end of year (in dollars per shares) | $ 13.43 |
SHARE BASED COMPENSATION - Re_2
SHARE BASED COMPENSATION - Restricted Performance Share Units (Details) - Executive Officer - Restricted Performance Share Units Plan - USD ($) $ in Thousands | Mar. 03, 2022 | Mar. 05, 2021 | Mar. 05, 2020 | Mar. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 688,216 | |||
Granted (in shares) | 516,852 | |||
Ending balance (in shares) | 1,205,068 | |||
March 5, 2020 RSPU Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 314,055 | |||
Granted (in shares) | 0 | |||
Ending balance (in shares) | 314,055 | |||
Granted (in shares) | 319,600 | |||
Fair Value of Units on Grant Date | $ 5,389 | |||
March 5, 2021 RSPU Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 374,161 | |||
Granted (in shares) | 0 | |||
Ending balance (in shares) | 374,161 | |||
Granted (in shares) | 380,957 | |||
Fair Value of Units on Grant Date | $ 6,389 | |||
March 3, 2022 Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Beginning balance (in shares) | 0 | |||
Granted (in shares) | 516,852 | |||
Ending balance (in shares) | 516,852 | |||
Granted (in shares) | 516,852 | |||
Fair Value of Units on Grant Date | $ 7,551 |
SEGMENT INFORMATION -Textual (D
SEGMENT INFORMATION -Textual (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Operating properties | $ 3,517,995 | $ 3,472,602 |
Right of use asset - operating leases, net | 20,150 | 20,313 |
Construction-in-progress | 283,323 | 277,237 |
Land held for development | 94,411 | 114,604 |
Prepaid leasehold interests in land held for development, net | 27,762 | 27,762 |
Philadelphia CBD | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 1,494,819 | 1,460,510 |
Pennsylvania Suburbs | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 859,470 | 866,223 |
Austin, Texas | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 791,600 | 778,145 |
Metropolitan Washington, D.C. | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 285,386 | 280,921 |
Other | ||
Segment Reporting Information [Line Items] | ||
Operating properties | $ 86,720 | $ 86,803 |
SEGMENT INFORMATION - Net Opera
SEGMENT INFORMATION - Net Operating Income of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 127,505 | $ 120,769 |
Operating expenses | (47,918) | (46,674) |
Net operating income | 79,587 | 74,095 |
Operating Segments | Philadelphia CBD | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 53,471 | 51,227 |
Operating expenses | (19,743) | (17,411) |
Net operating income | 33,728 | 33,816 |
Operating Segments | Pennsylvania Suburbs | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 31,807 | 31,740 |
Operating expenses | (10,158) | (10,694) |
Net operating income | 21,649 | 21,046 |
Operating Segments | Austin, Texas | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 24,915 | 26,175 |
Operating expenses | (10,293) | (9,720) |
Net operating income | 14,622 | 16,455 |
Operating Segments | Metropolitan Washington, D.C. | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 5,195 | 4,675 |
Operating expenses | (3,428) | (4,199) |
Net operating income | 1,767 | 476 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 3,604 | 3,213 |
Operating expenses | (2,010) | (2,282) |
Net operating income | 1,594 | 931 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 8,513 | 3,739 |
Operating expenses | (2,286) | (2,368) |
Net operating income | $ 6,227 | $ 1,371 |
SEGMENT INFORMATION - Unconsoli
SEGMENT INFORMATION - Unconsolidated Real Estate Ventures of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures | $ 434,555 | $ 411,110 | |
Equity in income (loss) of real estate venture | (4,563) | $ (6,924) | |
Philadelphia CBD | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures | 343,502 | 317,959 | |
Equity in income (loss) of real estate venture | (2,772) | (4,279) | |
Metropolitan Washington, D.C. | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures | 85,976 | 85,867 | |
Equity in income (loss) of real estate venture | (186) | (417) | |
Mid-Atlantic Office JV | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures | 31,911 | 31,680 | |
Equity in income (loss) of real estate venture | 418 | 207 | |
MAP Venture | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures | (26,834) | $ (24,396) | |
Equity in income (loss) of real estate venture | $ (2,023) | $ (2,435) |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Consolidated Net Income to Consolidated NOI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
Net income | $ 6,101 | $ 6,964 |
Plus: | ||
Interest expense | 15,742 | 16,293 |
Interest expense - amortization of deferred financing costs | 709 | 709 |
Depreciation and amortization | 43,782 | 40,343 |
General and administrative expenses | 10,000 | 6,584 |
Equity in loss of unconsolidated real estate ventures | 4,563 | 6,924 |
Less: | ||
Interest and investment income | 440 | 1,674 |
Income tax provision | (27) | (19) |
Net gain on disposition of real estate | 0 | 74 |
Net gain on sale of undepreciated real estate | 897 | 1,993 |
Consolidated net operating income | $ 79,587 | $ 74,095 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Feb. 28, 2021property | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Jul. 23, 2021USD ($) | |
Loss Contingencies [Line Items] | ||||
Limited payment guarantee, percent of principle balance (up to) | 25.00% | |||
One and Two Commerce Square | Preferred Equity Investment | ||||
Loss Contingencies [Line Items] | ||||
Other commitments | $ 20 | |||
Amount committed to date | 4.7 | |||
Drexel Square | ||||
Loss Contingencies [Line Items] | ||||
Other commitments | 7 | |||
Estimated potential additional contribution obligation | 2.3 | |||
Winter Storm | ||||
Loss Contingencies [Line Items] | ||||
Number of properties damaged | property | 1 | |||
Write-off of fixed assets | $ 1.2 | |||
Restoration liability | 0.8 | 7.2 | ||
Business interruption costs | 3.9 | |||
Insurance proceeds | 2.4 | 15.3 | ||
Winter Storm | Other Income | ||||
Loss Contingencies [Line Items] | ||||
Insurance proceeds | 3 | |||
Winter Storm | Accounts Payable and Accrued Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Restoration liability | $ 1.9 | |||
3025 JFK Venture | ||||
Loss Contingencies [Line Items] | ||||
Construction loan amount | $ 186.7 | |||
Unconsolidated Real Estate Ventures | ||||
Loss Contingencies [Line Items] | ||||
Unconsolidated real estate venture debt at 100%, gross | $ 1,217.2 |