Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 25, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | 171,569,807 | |
Entity Central Index Key | 0000790816 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate investments: | ||
Operating properties | $ 3,545,102 | $ 3,472,602 |
Accumulated depreciation | (1,009,108) | (957,450) |
Right of use asset - operating leases, net | 19,988 | 20,313 |
Operating real estate investments, net | 2,555,982 | 2,535,465 |
Construction-in-progress | 366,823 | 277,237 |
Land held for development | 93,887 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Total real estate investments, net | 3,052,268 | 2,955,068 |
Assets held for sale, net | 0 | 562 |
Cash and cash equivalents | 28,849 | 27,463 |
Accounts receivable | 13,584 | 11,875 |
Accrued rent receivable, net of allowance of $4,049 and $4,133 as of June 30, 2022 and December 31, 2021, respectively | 172,076 | 167,210 |
Investment in unconsolidated real estate ventures | 458,840 | 435,506 |
Deferred costs, net | 93,570 | 86,862 |
Intangible assets, net | 23,015 | 28,556 |
Other assets | 124,486 | 133,094 |
Total assets | 3,966,688 | 3,846,196 |
LIABILITIES AND BENEFICIARIES' EQUITY | ||
Unsecured credit facility | 214,000 | 23,000 |
Unsecured term loan, net | 248,047 | 249,608 |
Unsecured senior notes, net | 1,580,712 | 1,580,978 |
Accounts payable and accrued expenses | 131,669 | 150,151 |
Distributions payable | 32,800 | 32,765 |
Deferred income, gains and rent | 21,195 | 23,849 |
Intangible liabilities, net | 11,277 | 12,981 |
Lease liability - operating leases | 23,066 | 22,962 |
Other liabilities | 52,359 | 48,683 |
Total liabilities | 2,315,125 | 2,144,977 |
Commitments and contingencies (See Note 14) | ||
Brandywine Realty Trust's Equity: | ||
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 171,575,280 and 171,126,257 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 1,716 | 1,712 |
Additional paid-in-capital | 3,149,146 | 3,146,786 |
Deferred compensation payable in common shares | 19,601 | 18,491 |
Common shares in grantor trust, 1,202,385 and 1,169,703 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | (19,601) | (18,491) |
Cumulative earnings | 1,133,102 | 1,122,372 |
Accumulated other comprehensive income (loss) | 3,849 | (2,020) |
Cumulative distributions | (2,643,999) | (2,578,583) |
Total Brandywine Realty Trust's equity | 1,643,814 | 1,690,267 |
Noncontrolling interests | 7,749 | 10,952 |
Total beneficiaries' equity | 1,651,563 | 1,701,219 |
Total liabilities and beneficiaries' equity | $ 3,966,688 | $ 3,846,196 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||||
Total revenue | $ 124,042 | $ 120,102 | $ 251,547 | $ 240,871 |
Operating expenses | ||||
Property operating expenses | 33,111 | 29,264 | 64,659 | 58,199 |
Real estate taxes | 13,746 | 14,602 | 27,559 | 29,363 |
Third party management expenses | 2,792 | 3,561 | 5,349 | 6,539 |
Depreciation and amortization | 43,959 | 42,785 | 87,741 | 83,128 |
General and administrative expenses | 8,328 | 8,356 | 18,328 | 14,940 |
Total operating expenses | 101,936 | 98,568 | 203,636 | 192,169 |
Gain on sale of real estate | ||||
Net gain on disposition of real estate | 144 | 68 | 144 | 142 |
Net gain on sale of undepreciated real estate | 4,127 | 0 | 5,024 | 1,993 |
Total gain on sale of real estate | 4,271 | 68 | 5,168 | 2,135 |
Operating income | 26,377 | 21,602 | 53,079 | 50,837 |
Other income (expense): | ||||
Interest and investment income | 449 | 1,677 | 889 | 3,351 |
Interest expense | (16,341) | (15,490) | (32,083) | (31,783) |
Interest expense - amortization of deferred financing costs | (805) | (709) | (1,514) | (1,418) |
Equity in loss of unconsolidated real estate ventures | (4,981) | (7,240) | (9,544) | (14,164) |
Net income (loss) before income taxes | 4,699 | (160) | 10,827 | 6,823 |
Income tax provision | (48) | (15) | (75) | (34) |
Net income (loss) | 4,651 | (175) | 10,752 | 6,789 |
Net (income) loss attributable to noncontrolling interests | (14) | 8 | (22) | (35) |
Net income (loss) attributable to Brandywine Realty Trust | 4,637 | (167) | 10,730 | 6,754 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (98) | (94) | (246) | (240) |
Net income (loss) attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | $ 4,539 | $ (261) | $ 10,484 | $ 6,514 |
Basic income per Common Share (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
Diluted income per Common Share (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
Basic weighted average shares outstanding (in shares) | 171,527,031 | 170,848,894 | 171,411,631 | 170,737,437 |
Weighted average units outstanding, diluted (in shares) | 172,260,429 | 170,848,894 | 172,575,408 | 171,996,119 |
Rents | ||||
Revenue | ||||
Total revenue | $ 116,897 | $ 111,235 | $ 232,798 | $ 224,719 |
Third party management fees, labor reimbursement and leasing | ||||
Revenue | ||||
Total revenue | 5,924 | 6,627 | 11,032 | 13,278 |
Other | ||||
Revenue | ||||
Total revenue | $ 1,221 | $ 2,240 | $ 7,717 | $ 2,874 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Statement of Comprehensive Income [Abstract] | |||||||
Net income (loss) | $ 4,651 | $ 6,101 | $ (175) | $ 6,964 | $ 10,752 | $ 6,789 | |
Comprehensive income: | |||||||
Unrealized gain on derivative financial instruments | 1,747 | 860 | 5,511 | 1,770 | |||
Amortization of interest rate contracts | [1] | 188 | 188 | 376 | 376 | ||
Total comprehensive income | 1,935 | $ 3,952 | 1,048 | $ 1,098 | 5,887 | 2,146 | |
Comprehensive income | 6,586 | 873 | 16,639 | 8,935 | |||
Comprehensive (income) loss attributable to noncontrolling interest | (20) | 2 | (40) | (47) | |||
Comprehensive income attributable to Brandywine Realty Trust | $ 6,566 | $ 875 | $ 16,599 | $ 8,888 | |||
[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 (loss) | 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, 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 (loss) | 6,789 | ||||||||
Other comprehensive income | 2,146 | ||||||||
Ending balance (in shares) at Jun. 30, 2021 | 170,900,491 | 1,175,343 | |||||||
Ending balance at Jun. 30, 2021 | 1,751,053 | $ 1,709 | $ 18,491 | 3,140,575 | (18,491) | 1,116,837 | (5,427) | (2,513,373) | 10,732 |
Beginning balance (in shares) at Mar. 31, 2021 | 170,663,251 | 1,111,777 | |||||||
Beginning 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (175) | (167) | (8) | ||||||
Other comprehensive income | 1,048 | 1,042 | 6 | ||||||
Issuance of partnership interest in consolidated real estate ventures | 2,289 | 2,289 | |||||||
Redemption of LP Units | (2,334) | (2,334) | |||||||
Share-based compensation activity (in shares) | 237,240 | 63,566 | |||||||
Share-based compensation activity | 690 | $ 2 | 688 | ||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ 833 | (833) | ||||||
Reallocation of Noncontrolling interest | 0 | (569) | 569 | ||||||
Distributions declared | (32,719) | (32,562) | (157) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 170,900,491 | 1,175,343 | |||||||
Ending balance at Jun. 30, 2021 | 1,751,053 | $ 1,709 | $ 18,491 | 3,140,575 | (18,491) | 1,116,837 | (5,427) | (2,513,373) | 10,732 |
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 (loss) | 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 |
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 (loss) | 10,752 | ||||||||
Other comprehensive income | 5,887 | ||||||||
Ending balance (in shares) at Jun. 30, 2022 | 171,575,280 | 1,202,385 | |||||||
Ending balance at Jun. 30, 2022 | 1,651,563 | $ 1,716 | $ 19,601 | 3,149,146 | (19,601) | 1,133,102 | 3,849 | (2,643,999) | 7,749 |
Beginning balance (in shares) at Mar. 31, 2022 | 171,383,912 | 1,185,541 | |||||||
Beginning 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 4,651 | 4,637 | 14 | ||||||
Other comprehensive income | 1,935 | 1,929 | 6 | ||||||
Share-based compensation activity (in shares) | 191,368 | 16,844 | |||||||
Share-based compensation activity | 1,917 | $ 2 | 1,915 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | |||||||||
Share Issuance from/(to) Deferred Compensation Plan | 0 | $ 215 | (215) | ||||||
Distributions declared | (32,803) | (32,705) | (98) | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 171,575,280 | 1,202,385 | |||||||
Ending balance at Jun. 30, 2022 | $ 1,651,563 | $ 1,716 | $ 19,601 | $ 3,149,146 | $ (19,601) | $ 1,133,102 | $ 3,849 | $ (2,643,999) | $ 7,749 |
CONSOLIDATED STATEMENTS OF BE_2
CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | ||||
May 18, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 10,752 | $ 6,789 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 87,741 | 83,128 |
Amortization of deferred financing costs | 1,514 | 1,418 |
Amortization of debt discount/(premium), net | (975) | (975) |
Amortization of stock compensation costs | 5,419 | 4,324 |
Straight-line rent income | (5,042) | (7,472) |
Amortization of acquired above (below) market leases, net | (1,664) | (2,573) |
Ground rent expense | 408 | 505 |
Provision for doubtful accounts | 0 | 67 |
Total gain on sale of real estate | (5,168) | (2,135) |
Loss from unconsolidated real estate ventures, net of distributions | 9,544 | 14,164 |
Income tax provision | 75 | 34 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,254) | 2,513 |
Other assets | (2,711) | (2,405) |
Accounts payable and accrued expenses | (19,484) | (12,431) |
Deferred income, gains and rent | (2,487) | 1,887 |
Other liabilities | 1,826 | (7,712) |
Net cash provided by operating activities | 78,494 | 79,126 |
Cash flows from investing activities: | ||
Acquisition of properties | (3,446) | 0 |
Proceeds from the sale of properties | 34,146 | 79 |
Proceeds from insurance | 0 | 1,250 |
Capital expenditures for tenant improvements | (35,545) | (20,573) |
Capital expenditures for redevelopments | (56,472) | (10,005) |
Capital expenditures for developments | (82,252) | (18,746) |
Advances for the purchase of tenant assets, net of repayments | (447) | 290 |
Investment in unconsolidated real estate ventures | (27,807) | (16,662) |
Deposits for real estate | (7,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 5,720 | 5,151 |
Leasing costs paid | (15,209) | (9,187) |
Net cash used in investing activities | (188,862) | (68,403) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 196,000 | 96,000 |
Repayments of credit facility borrowings | (5,000) | (38,000) |
Debt financing costs paid | (6,641) | 0 |
Exercise of stock options, net | 0 | (63) |
Shares used for employee taxes upon vesting of share awards | (2,935) | (1,823) |
Partner contributions to consolidated real estate venture | 0 | 2,289 |
Redemption of limited partnership units | (4,006) | (2,234) |
Distributions paid to shareholders | (65,315) | (65,074) |
Distributions to noncontrolling interest | (255) | (383) |
Net cash provided by (used in) financing activities | 111,848 | (9,288) |
Increase in cash and cash equivalents and restricted cash | 1,480 | 1,435 |
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 | 29,780 | 48,512 |
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 | 28,849 | 47,730 |
Restricted cash, end of period | 931 | 782 |
Cash and cash equivalents and restricted cash, end of period | 29,780 | 48,512 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the six months ended June 30, 2022 and 2021 of $4,442 and $3,734, respectively | 37,961 | 36,961 |
Cash paid for income taxes | 902 | 21 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 32,800 | 32,727 |
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 other assets as a result of investing activities | 13,396 | 0 |
Change in capital expenditures financed through accounts payable at period end | 10,283 | (653) |
Change in capital expenditures financed through retention payable at period end | $ (1,097) | $ (2,339) |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest | $ 4,442 | $ 3,734 |
CONSOLIDATED BALANCE SHEETS - B
CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real estate investments: | ||
Operating properties | $ 3,545,102 | $ 3,472,602 |
Accumulated depreciation | (1,009,108) | (957,450) |
Right of use asset - operating leases, net | 19,988 | 20,313 |
Operating real estate investments, net | 2,555,982 | 2,535,465 |
Construction-in-progress | 366,823 | 277,237 |
Land held for development | 93,887 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Total real estate investments, net | 3,052,268 | 2,955,068 |
Assets held for sale, net | 0 | 562 |
Cash and cash equivalents | 28,849 | 27,463 |
Accounts receivable | 13,584 | 11,875 |
Accrued rent receivable, net of allowance of $4,049 and $4,133 as of June 30, 2022 and December 31, 2021, respectively | 172,076 | 167,210 |
Investment in unconsolidated real estate ventures | 458,840 | 435,506 |
Deferred costs, net | 93,570 | 86,862 |
Intangible assets, net | 23,015 | 28,556 |
Other assets | 124,486 | 133,094 |
Total assets | 3,966,688 | 3,846,196 |
LIABILITIES AND BENEFICIARIES' EQUITY | ||
Unsecured credit facility | 214,000 | 23,000 |
Unsecured term loan, net | 248,047 | 249,608 |
Unsecured senior notes, net | 1,580,712 | 1,580,978 |
Accounts payable and accrued expenses | 131,669 | 150,151 |
Distributions payable | 32,800 | 32,765 |
Deferred income, gains and rent | 21,195 | 23,849 |
Intangible liabilities, net | 11,277 | 12,981 |
Lease liability - operating leases | 23,066 | 22,962 |
Other liabilities | 52,359 | 48,683 |
Total liabilities | 2,315,125 | 2,144,977 |
Commitments and contingencies (See Note 14) | ||
Brandywine Realty Trust's Equity: | ||
Accumulated other comprehensive income (loss) | 3,849 | (2,020) |
Total liabilities and beneficiaries' equity | 3,966,688 | 3,846,196 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Real estate investments: | ||
Operating properties | 3,545,102 | 3,472,602 |
Accumulated depreciation | (1,009,108) | (957,450) |
Right of use asset - operating leases, net | 19,988 | 20,313 |
Operating real estate investments, net | 2,555,982 | 2,535,465 |
Construction-in-progress | 366,823 | 277,237 |
Land held for development | 93,887 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Total real estate investments, net | 3,052,268 | 2,955,068 |
Assets held for sale, net | 0 | 562 |
Cash and cash equivalents | 28,849 | 27,463 |
Accounts receivable | 13,584 | 11,875 |
Accrued rent receivable, net of allowance of $4,049 and $4,133 as of June 30, 2022 and December 31, 2021, respectively | 172,076 | 167,210 |
Investment in unconsolidated real estate ventures | 458,840 | 435,506 |
Deferred costs, net | 93,570 | 86,862 |
Intangible assets, net | 23,015 | 28,556 |
Other assets | 124,486 | 133,094 |
Total assets | 3,966,688 | 3,846,196 |
LIABILITIES AND BENEFICIARIES' EQUITY | ||
Unsecured credit facility | 214,000 | 23,000 |
Unsecured term loan, net | 248,047 | 249,608 |
Unsecured senior notes, net | 1,580,712 | 1,580,978 |
Accounts payable and accrued expenses | 131,669 | 150,151 |
Distributions payable | 32,800 | 32,765 |
Deferred income, gains and rent | 21,195 | 23,849 |
Intangible liabilities, net | 11,277 | 12,981 |
Lease liability - operating leases | 23,066 | 22,962 |
Other liabilities | 52,359 | 48,683 |
Total liabilities | 2,315,125 | 2,144,977 |
Commitments and contingencies (See Note 14) | ||
Redeemable limited partnership units at redemption value; 516,467 and 823,983 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 5,059 | 11,140 |
Brandywine Realty Trust's Equity: | ||
General Partnership Capital; 171,575,280 and 171,126,257 units issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 1,640,153 | 1,689,611 |
Accumulated other comprehensive income (loss) | 3,521 | (2,366) |
Total Brandywine Operating Partnership, L.P.'s equity | 1,643,674 | 1,687,245 |
Noncontrolling interest - consolidated real estate ventures | 2,830 | 2,834 |
Total partners' equity | 1,646,504 | 1,690,079 |
Total liabilities and beneficiaries' equity | $ 3,966,688 | $ 3,846,196 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued rent receivable, allowance | $ 4,049 | $ 4,133 |
Common stock, shares issued (in shares) | 171,575,280 | 171,126,257 |
Common stock, shares outstanding (in shares) | 171,575,280 | 171,126,257 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Accrued rent receivable, allowance | $ 4,049 | $ 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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | ||||
Total revenue | $ 124,042 | $ 120,102 | $ 251,547 | $ 240,871 |
Operating expenses | ||||
Property operating expenses | 33,111 | 29,264 | 64,659 | 58,199 |
Real estate taxes | 13,746 | 14,602 | 27,559 | 29,363 |
Third party management expenses | 2,792 | 3,561 | 5,349 | 6,539 |
Depreciation and amortization | 43,959 | 42,785 | 87,741 | 83,128 |
General and administrative expenses | 8,328 | 8,356 | 18,328 | 14,940 |
Total operating expenses | 101,936 | 98,568 | 203,636 | 192,169 |
Gain on sale of real estate | ||||
Net gain on disposition of real estate | 144 | 68 | 144 | 142 |
Net gain on sale of undepreciated real estate | 4,127 | 0 | 5,024 | 1,993 |
Total gain on sale of real estate | 4,271 | 68 | 5,168 | 2,135 |
Operating income | 26,377 | 21,602 | 53,079 | 50,837 |
Other income (expense): | ||||
Interest and investment income | 449 | 1,677 | 889 | 3,351 |
Interest expense | (16,341) | (15,490) | (32,083) | (31,783) |
Interest expense - amortization of deferred financing costs | (805) | (709) | (1,514) | (1,418) |
Equity in loss of unconsolidated real estate ventures | (4,981) | (7,240) | (9,544) | (14,164) |
Net income (loss) before income taxes | 4,699 | (160) | 10,827 | 6,823 |
Income tax provision | (48) | (15) | (75) | (34) |
Net income (loss) | 4,651 | (175) | 10,752 | 6,789 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (98) | (94) | (246) | (240) |
Net income (loss) attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | $ 4,539 | $ (261) | $ 10,484 | $ 6,514 |
Basic income per Common Share (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
Diluted income per Common Share (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
Basic weighted average common partnership units outstanding (in shares) | 171,527,031 | 170,848,894 | 171,411,631 | 170,737,437 |
Diluted weighted average common partnership units outstanding (in shares) | 172,260,429 | 170,848,894 | 172,575,408 | 171,996,119 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Total revenue | $ 124,042 | $ 120,102 | $ 251,547 | $ 240,871 |
Operating expenses | ||||
Property operating expenses | 33,111 | 29,264 | 64,659 | 58,199 |
Real estate taxes | 13,746 | 14,602 | 27,559 | 29,363 |
Third party management expenses | 2,792 | 3,561 | 5,349 | 6,539 |
Depreciation and amortization | 43,959 | 42,785 | 87,741 | 83,128 |
General and administrative expenses | 8,328 | 8,356 | 18,328 | 14,940 |
Total operating expenses | 101,936 | 98,568 | 203,636 | 192,169 |
Gain on sale of real estate | ||||
Net gain on disposition of real estate | 144 | 68 | 144 | 142 |
Net gain on sale of undepreciated real estate | 4,127 | 0 | 5,024 | 1,993 |
Total gain on sale of real estate | 4,271 | 68 | 5,168 | 2,135 |
Operating income | 26,377 | 21,602 | 53,079 | 50,837 |
Other income (expense): | ||||
Interest and investment income | 449 | 1,677 | 889 | 3,351 |
Interest expense | (16,341) | (15,490) | (32,083) | (31,783) |
Interest expense - amortization of deferred financing costs | (805) | (709) | (1,514) | (1,418) |
Equity in loss of unconsolidated real estate ventures | (4,981) | (7,240) | (9,544) | (14,164) |
Net income (loss) before income taxes | 4,699 | (160) | 10,827 | 6,823 |
Income tax provision | (48) | (15) | (75) | (34) |
Net income (loss) | 4,651 | (175) | 10,752 | 6,789 |
Net loss attributable to noncontrolling interests - consolidated real estate ventures | 2 | 1 | 4 | 2 |
Net income (loss) attributable to Brandywine Operating Partnership | 4,653 | (174) | 10,756 | 6,791 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (98) | (94) | (246) | (240) |
Net income (loss) attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | $ 4,555 | $ (268) | $ 10,510 | $ 6,551 |
Basic income per Common Share (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
Diluted income per Common Share (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
Basic weighted average common partnership units outstanding (in shares) | 172,043,498 | 171,792,415 | 171,985,863 | 171,699,909 |
Diluted weighted average common partnership units outstanding (in shares) | 172,776,896 | 171,792,415 | 173,149,640 | 172,958,591 |
Rents | ||||
Revenue | ||||
Total revenue | $ 116,897 | $ 111,235 | $ 232,798 | $ 224,719 |
Rents | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Total revenue | 116,897 | 111,235 | 232,798 | 224,719 |
Third party management fees, labor reimbursement and leasing | ||||
Revenue | ||||
Total revenue | 5,924 | 6,627 | 11,032 | 13,278 |
Third party management fees, labor reimbursement and leasing | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Total revenue | 5,924 | 6,627 | 11,032 | 13,278 |
Other | ||||
Revenue | ||||
Total revenue | 1,221 | 2,240 | 7,717 | 2,874 |
Other | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Revenue | ||||
Total revenue | $ 1,221 | $ 2,240 | $ 7,717 | $ 2,874 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | ||
Net income (loss) | $ 4,651 | $ (175) | $ 10,752 | $ 6,789 | |
Comprehensive income: | |||||
Unrealized gain on derivative financial instruments | 1,747 | 860 | 5,511 | 1,770 | |
Amortization of interest rate contracts | [1] | 188 | 188 | 376 | 376 |
Total comprehensive income | 1,935 | 1,048 | 5,887 | 2,146 | |
Comprehensive income | 6,586 | 873 | 16,639 | 8,935 | |
Comprehensive loss attributable to noncontrolling interest - consolidated real estate ventures | (20) | 2 | (40) | (47) | |
Comprehensive income attributable to Brandywine Realty Trust | 6,566 | 875 | 16,599 | 8,888 | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||||
Net income (loss) | 4,651 | (175) | 10,752 | 6,789 | |
Comprehensive income: | |||||
Unrealized gain on derivative financial instruments | 1,747 | 860 | 5,511 | 1,770 | |
Amortization of interest rate contracts | [2] | 188 | 188 | 376 | 376 |
Total comprehensive income | 1,935 | 1,048 | 5,887 | 2,146 | |
Comprehensive income | 6,586 | 873 | 16,639 | 8,935 | |
Comprehensive loss attributable to noncontrolling interest - consolidated real estate ventures | 2 | 1 | 4 | 2 | |
Comprehensive income attributable to Brandywine Realty Trust | $ 6,588 | $ 874 | $ 16,643 | $ 8,937 | |
[1]Amounts reclassified from comprehensive income to interest expense within the Consolidated Statements of Operations.[2]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 | 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 (loss) | $ 6,964 | $ 43 | 6,964 | (1) | $ 6,965 | ||
Other comprehensive income | 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, 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 (loss) | 6,789 | 6,789 | |||||
Other comprehensive income | 2,146 | 2,146 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 170,900,491 | ||||||
Ending Balance at Jun. 30, 2021 | 1,739,603 | (5,789) | 70 | $ 1,745,322 | |||
Beginning balance (in shares) at Mar. 31, 2021 | 170,663,251 | ||||||
Beginning Balance at Mar. 31, 2021 | 1,769,581 | (6,837) | 71 | $ 1,776,347 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Net income (loss) | (175) | (8) | (175) | (1) | (174) | ||
Other comprehensive income | 1,048 | 1,042 | 6 | 1,048 | 1,048 | ||
Deferred compensation obligation | 0 | ||||||
Repurchase and retirement of LP units | (2,334) | (2,334) | |||||
Issuance of partnership interest in consolidated real estate ventures | 2,289 | 2,289 | 2,289 | $ 2,289 | |||
Share-based compensation activity (in shares) | 237,240 | ||||||
Share-based compensation activity | 690 | 690 | $ 690 | ||||
Adjustment of redeemable partnership units to liquidation value at period end | 1,066 | 1,066 | |||||
Distributions declared to general partnership unitholders | (32,562) | $ (32,562) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 170,900,491 | ||||||
Ending Balance at Jun. 30, 2021 | 1,739,603 | (5,789) | 70 | $ 1,745,322 | |||
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 (loss) | 6,101 | 8 | 6,101 | (2) | $ 6,103 | ||
Other comprehensive income | 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 | (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 | |||
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 (loss) | 10,752 | 10,752 | |||||
Other comprehensive income | 5,887 | 5,887 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 171,575,280 | ||||||
Ending Balance at Jun. 30, 2022 | 1,646,504 | 3,521 | 2,830 | $ 1,640,153 | |||
Beginning balance (in shares) at Mar. 31, 2022 | 171,383,912 | ||||||
Beginning Balance at Mar. 31, 2022 | 1,668,525 | 1,586 | 2,832 | $ 1,664,107 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Net income (loss) | 4,651 | 14 | 4,651 | (2) | $ 4,653 | ||
Other comprehensive income | 1,935 | $ 1,929 | $ 6 | 1,935 | 1,935 | ||
Deferred compensation obligation | 0 | ||||||
Share-based compensation activity (in shares) | 191,368 | ||||||
Share-based compensation activity | $ 1,917 | 1,917 | $ 1,917 | ||||
Adjustment of redeemable partnership units to liquidation value at period end | 2,181 | 2,181 | |||||
Distributions declared to general partnership unitholders | (32,705) | $ (32,705) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 171,575,280 | ||||||
Ending Balance at Jun. 30, 2022 | $ 1,646,504 | $ 3,521 | $ 2,830 | $ 1,640,153 |
CONSOLIDATED STATEMENTS OF PA_2
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Net income (loss) | $ 4,651 | $ 6,101 | $ (175) | $ 6,964 |
Total comprehensive income | 1,935 | 3,952 | 1,048 | 1,098 |
Deferred compensation obligation | 0 | (249) | 0 | (198) |
Share-based compensation activity | 1,917 | 1,655 | 690 | 2,502 |
Noncontrolling Interests | ||||
Net income (loss) | 14 | 8 | (8) | 43 |
Total comprehensive income | 6 | 12 | 6 | 6 |
Accumulated Other Comprehensive Income (Loss) | ||||
Total comprehensive income | 1,929 | 3,940 | 1,042 | 1,092 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Net income (loss) | 4,651 | 6,101 | (175) | 6,964 |
Total comprehensive income | 1,935 | 3,952 | 1,048 | 1,098 |
Deferred compensation obligation | (249) | (198) | ||
Repurchase and retirement of LP units | (4,006) | (2,334) | ||
Share-based compensation activity | 1,917 | 1,655 | 690 | 2,502 |
Adjustment of redeemable partnership units to liquidation value at period end | 2,181 | 3,704 | 1,066 | (1,294) |
Partners' Capital Account, Distributions | (32,705) | (32,711) | (32,562) | (32,573) |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Noncontrolling Interests | ||||
Net income (loss) | (2) | (2) | (1) | (1) |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Accumulated Other Comprehensive Income (Loss) | ||||
Total comprehensive income | $ 1,935 | $ 3,952 | $ 1,048 | $ 1,098 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | General Partner Capital | ||||
Distributions to general partnership unitholders (USD per share) | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 |
Net income (loss) | $ 4,653 | $ 6,103 | $ (174) | $ 6,965 |
Deferred compensation obligation (in shares) | (19,406) | (18,058) | ||
Deferred compensation obligation | $ (249) | $ (198) | ||
Repurchase and retirement of LP units | $ (4,006) | $ (2,334) | ||
Share-based compensation activity (in shares) | 191,368 | 277,061 | 237,240 | 108,345 |
Share-based compensation activity | $ 1,917 | $ 1,655 | $ 690 | $ 2,502 |
Adjustment of redeemable partnership units to liquidation value at period end | 2,181 | 3,704 | 1,066 | (1,294) |
Partners' Capital Account, Distributions | $ (32,705) | $ (32,711) | $ (32,562) | $ (32,573) |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 10,752 | $ 6,789 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 87,741 | 83,128 |
Amortization of deferred financing costs | 1,514 | 1,418 |
Amortization of debt discount/(premium), net | (975) | (975) |
Amortization of stock compensation costs | 5,419 | 4,324 |
Straight-line rent income | (5,042) | (7,472) |
Amortization of acquired above (below) market leases, net | (1,664) | (2,573) |
Ground rent expense | 408 | 505 |
Provision for doubtful accounts | 0 | 67 |
Total gain on sale of real estate | (5,168) | (2,135) |
Loss from unconsolidated real estate ventures, net of distributions | 9,544 | 14,164 |
Income tax provision | 75 | 34 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,254) | 2,513 |
Other assets | (2,711) | (2,405) |
Accounts payable and accrued expenses | (19,484) | (12,431) |
Deferred income, gains and rent | (2,487) | 1,887 |
Other liabilities | 1,826 | (7,712) |
Net cash provided by operating activities | 78,494 | 79,126 |
Cash flows from investing activities: | ||
Acquisition of properties | (3,446) | 0 |
Proceeds from the sale of properties | 34,146 | 79 |
Proceeds from insurance | 0 | 1,250 |
Capital expenditures for tenant improvements | (35,545) | (20,573) |
Capital expenditures for redevelopments | (56,472) | (10,005) |
Capital expenditures for developments | (82,252) | (18,746) |
Advances for the purchase of tenant assets, net of repayments | (447) | 290 |
Investment in unconsolidated real estate ventures | (27,807) | (16,662) |
Deposits for real estate | (7,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 5,720 | 5,151 |
Leasing costs paid | (15,209) | (9,187) |
Net cash used in investing activities | (188,862) | (68,403) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 196,000 | 96,000 |
Repayments of credit facility borrowings | (5,000) | (38,000) |
Debt financing costs paid | (6,641) | 0 |
Exercise of stock options, net | 0 | (63) |
Shares used for employee taxes upon vesting of share awards | (2,935) | (1,823) |
Partner contributions to consolidated real estate venture | 0 | 2,289 |
Redemption of limited partnership units | (4,006) | (2,234) |
Distributions paid to shareholders | (65,315) | (65,074) |
Net cash provided by (used in) financing activities | 111,848 | (9,288) |
Increase in cash and cash equivalents and restricted cash | 1,480 | 1,435 |
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 | 29,780 | 48,512 |
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 | 28,849 | 47,730 |
Restricted cash, end of period | 931 | 782 |
Cash and cash equivalents and restricted cash at end of period | 29,780 | 48,512 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the six months ended June 30, 2022 and 2021 of $4,442 and $3,734, respectively | 37,961 | 36,961 |
Cash paid for income taxes | 902 | 21 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 32,800 | 32,727 |
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 other assets as a result of investing activities | 13,396 | 0 |
Change in capital expenditures financed through accounts payable at period end | 10,283 | (653) |
Change in capital expenditures financed through retention payable at period end | (1,097) | (2,339) |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Cash flows from operating activities: | ||
Net income | 10,752 | 6,789 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 87,741 | 83,128 |
Amortization of deferred financing costs | 1,514 | 1,418 |
Amortization of debt discount/(premium), net | (975) | (975) |
Amortization of stock compensation costs | 5,419 | 4,324 |
Straight-line rent income | (5,042) | (7,472) |
Amortization of acquired above (below) market leases, net | (1,664) | (2,573) |
Ground rent expense | 408 | 505 |
Provision for doubtful accounts | 0 | 67 |
Total gain on sale of real estate | (5,168) | (2,135) |
Loss from unconsolidated real estate ventures, net of distributions | 9,544 | 14,164 |
Income tax provision | 75 | 34 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,254) | 2,513 |
Other assets | (2,711) | (2,405) |
Accounts payable and accrued expenses | (19,484) | (12,431) |
Deferred income, gains and rent | (2,487) | 1,887 |
Other liabilities | 1,826 | (7,712) |
Net cash provided by operating activities | 78,494 | 79,126 |
Cash flows from investing activities: | ||
Acquisition of properties | (3,446) | 0 |
Proceeds from the sale of properties | 34,146 | 79 |
Proceeds from insurance | 0 | 1,250 |
Capital expenditures for tenant improvements | (35,545) | (20,573) |
Capital expenditures for redevelopments | (56,472) | (10,005) |
Capital expenditures for developments | (82,252) | (18,746) |
Advances for the purchase of tenant assets, net of repayments | (447) | 290 |
Investment in unconsolidated real estate ventures | (27,807) | (16,662) |
Deposits for real estate | (7,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 5,720 | 5,151 |
Leasing costs paid | (15,209) | (9,187) |
Net cash used in investing activities | (188,862) | (68,403) |
Cash flows from financing activities: | ||
Proceeds from credit facility borrowings | 196,000 | 96,000 |
Repayments of credit facility borrowings | (5,000) | (38,000) |
Debt financing costs paid | (6,641) | 0 |
Exercise of stock options, net | 0 | (63) |
Shares used for employee taxes upon vesting of share awards | (2,935) | (1,823) |
Partner contributions to consolidated real estate venture | 0 | 2,289 |
Redemption of limited partnership units | (4,006) | (2,234) |
Distributions paid to shareholders | (65,570) | (65,457) |
Net cash provided by (used in) financing activities | 111,848 | (9,288) |
Increase in cash and cash equivalents and restricted cash | 1,480 | 1,435 |
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 | 29,780 | 48,512 |
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 | 28,849 | 47,730 |
Restricted cash, end of period | 931 | 782 |
Cash and cash equivalents and restricted cash at end of period | 29,780 | 48,512 |
Supplemental disclosure: | ||
Cash paid for interest, net of capitalized interest during the six months ended June 30, 2022 and 2021 of $4,442 and $3,734, respectively | 37,961 | 36,961 |
Cash paid for income taxes | 902 | 21 |
Supplemental disclosure of non-cash activity: | ||
Dividends and distributions declared but not paid | 32,800 | 32,727 |
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 other assets as a result of investing activities | 13,396 | 0 |
Change in capital expenditures financed through accounts payable at period end | 10,283 | (653) |
Change in capital expenditures financed through retention payable at period end | $ (1,097) | $ (2,339) |
CONSOLIDATED STATEMENTS OF CA_4
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Capitalized interest | $ 4,442 | $ 3,734 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Capitalized interest | $ 4,442 | $ 3,734 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accrued rent receivable, allowance | $ 4,049 | $ 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) | 171,575,280 | 171,126,257 |
Common stock, shares outstanding (in shares) | 171,575,280 | 171,126,257 |
Common shares in grantor trust, issued and outstanding (in shares) | 1,202,385 | 1,169,703 |
ORGANIZATION OF THE PARENT COMP
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2022, the Company owned 78 properties that contained an aggregate of approximately 13.6 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 June 30, 2022: Number of Properties Rentable Square Feet Office properties 69 12,054,491 Mixed-use properties 5 942,334 Core Properties 74 12,996,825 Development property 1 205,803 Redevelopment properties 3 436,659 The Properties 78 13,639,287 In addition to the Properties, as of June 30, 2022, the Company owned 164.6 acres of land held for development. The Company also held a leasehold interest in two land parcels totaling 1.6 acres, acquired through prepaid 99-year ground leases, and held options to purchase approximately 54.7 additional acres of undeveloped land. As of June 30, 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 13.1 million square feet. As of June 30, 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 June 30, 2022, the management company subsidiaries were managing properties containing an aggregate of approximately 23.0 million net rentable square feet, of which approximately 13.6 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 | 6 Months Ended |
Jun. 30, 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 ("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 June 30, 2022, the results of its operations for the three and six months ended June 30, 2022 and 2021 and its cash flows for the six months ended June 30, 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 GAAP 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. During the second quarter of 2022, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. In addition, the Company elected to apply the hedge accounting expedients related to changes in critical terms of derivative or hedged transactions, and bilaterally negotiated contract changes for the refinance of the Company's term loan and associated interest rate swap. 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 | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | 3. REAL ESTATE INVESTMENTS As of June 30, 2022 and December 31, 2021, the gross carrying value of the operating properties was as follows (in thousands): June 30, 2022 December 31, 2021 Land $ 410,891 $ 410,144 Building and improvements 2,710,368 2,653,492 Tenant improvements 423,843 408,966 Total $ 3,545,102 $ 3,472,602 Acquisitions The following table summarizes the property acquisitions during the six months ended June 30, 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 3151 Market Street (a) April 29, 2022 Philadelphia, PA Leasehold Interest 0.8 acres $ 27,349 (a) On April 29, 2022, the Company acquired, through a 99-year ground lease, the leasehold interest in a 0.8-acre land parcel, located at 3151 Market Street, in Philadelphia, Pennsylvania. The Company prepaid $19.5 million of the ground lease, representing 500,000 square feet of buildable floor to area ratio ("FAR") to be used for the development of 3151 Market Street, and paid $7.8 million for 200,000 square feet of FAR density usable pursuant to the Schuylkill Yards Project master development agreement. The ground lease and additional density are included in construction in progress and prepaid leasehold interests in land held for development, respectively, in the consolidated balance sheets. See Note 15, ''Subsequent Events," for further information. Dispositions The following table summarizes the property dispositions during the six months ended June 30, 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 25 M Street April 14, 2022 Washington, D.C. Land 0.8 acres $ 29,675 $ 3,436 Gibbsboro Portfolio June 28, 2022 Gibbsboro, NJ Office/Land 42,809/4.0 acres $ 4,100 $ 831 (b) (a) Gain/(Loss) on Sale is net of closing and other transaction related costs. (b) Includes $0.7 million of gain on sale of undepreciated real estate and $0.1 million of gain on disposition of real estate included within the consolidated statements of operations for the six months ended June 30, 2022. 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-use 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 $61.0 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. As of June 30, 2022, the Company was in the process of securing a construction loan for each of the two joint ventures that would total approximately $206.7 million, representing 63% 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 prevented the Company from meeting the sale recognition criteria of ASC 606 until the applicable closings of the construction loans. On July 29, 2022, the One Uptown Ventures closed on two separate construction loans. The office joint venture closed on a $121.7 million construction loan which bears interest at SOFR plus 3.00% and the multifamily joint venture closed on an $85.0 million construction which bears interest at SOFR plus 2.45%, plus, in each case, a daily SOFR adjustment of 10 basis points. Both loans mature in July 2026. The Company has also provided a carry guarantee and limited payment guarantee up to 30% and 15% of the principal balance of the $121.7 million and $85 million construction loan, respectively. The Company subsequently recognized the formation of the joint ventures and deconsolidated the projects. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES As of June 30, 2022, the Company held ownership interests in ten unconsolidated real estate ventures for a net aggregate investment balance of $429.3 million, which includes a negative investment balance in one unconsolidated real estate venture of $29.6 million, reflected within "Other liabilities" on the consolidated balance sheets. As of June 30, 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 $2.1 million and $2.1 million for the three months ended June 30, 2022 and 2021, respectively, and $4.0 million and $4.1 million for the six months ended June 30, 2022 and 2021, respectively. The Company earned leasing commissions from the unconsolidated real estate ventures of $0.8 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $1.1 million and $1.9 million for the six months ended June 30, 2022 and 2021, respectively. The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $2.8 million and $2.5 million as of June 30, 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 June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Net property $ 1,962,902 $ 1,563,263 Other assets 516,328 434,687 Other liabilities 415,816 331,947 Debt, net 1,218,561 956,668 Equity (a) 844,853 709,335 (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 and six month periods ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue $ 64,957 $ 53,228 $ 118,173 $ 106,585 Operating expenses (31,671) (28,629) (60,263) (57,616) Interest expense, net (11,663) (8,017) (19,132) (15,391) Depreciation and amortization (27,927) (25,500) (49,210) (50,393) Net loss $ (6,304) $ (8,918) $ (10,432) $ (16,815) Ownership interest % Various Various Various Various Company's share of net loss $ (4,822) $ (7,281) $ (9,439) $ (13,822) Basis adjustments and other (159) 41 (105) (342) Equity in loss of unconsolidated real estate ventures $ (4,981) $ (7,240) $ (9,544) $ (14,164) 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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Lease Revenue 2022 2021 2022 2021 Fixed contractual payments $ 88,672 $ 86,117 $ 177,435 $ 172,497 Variable lease payments 25,234 22,060 49,565 46,208 Total $ 113,906 $ 108,177 $ 227,000 $ 218,705 |
INTANGIBLE ASSETS AND LIABILITI
INTANGIBLE ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND LIABILITIES | 6. INTANGIBLE ASSETS AND LIABILITIES As of June 30, 2022 and December 31, 2021, the Company’s intangible assets/liabilities were comprised of the following (in thousands): June 30, 2022 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 59,582 $ (36,770) $ 22,812 Tenant relationship value 167 (100) 67 Above market leases acquired 331 (195) 136 Total intangible assets, net $ 60,080 $ (37,065) $ 23,015 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 22,268 $ (10,991) $ 11,277 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 June 30, 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 (six months remaining) $ 4,100 $ 883 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 $ 23,015 $ 11,277 |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Effective Maturity UNSECURED DEBT $600 million Unsecured Credit Facility $ 214,000 $ 23,000 SOFR + 1.15% June 2026 (a) Term Loan - Swapped to fixed 250,000 250,000 2.87% June 2027 (b) $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 2,042,610 1,851,610 Plus: original issue premium (discount), net 7,212 8,187 Less: deferred financing costs (7,063) (6,211) Total unsecured indebtedness $ 2,042,759 $ 1,853,586 (a) Spread includes a 10 basis point daily SOFR adjustment. (b) On June 30, 2022, the Company executed the 2022 Credit Agreement (as defined below), that provides for, among other things, the Term Loan (as defined below), which replaced the Company's $250.0 million term loan that had been scheduled to mature on October 22, 2022. As of June 30, 2022, based on the Operating Partnership's unsecured senior debt rating, the applicable margin for the Term Loan was 120.0 basis points, plus a daily SOFR adjustment of 10 basis points. Through a series of interest rate swaps, the $250.0 million principal amount of the Term Loan has a fixed interest rate of 2.87% until October 8, 2022. On June 30, 2022, the Company executed the Second Amended and Restated Credit Agreement (as amended and restated, the “2022 Credit Agreement”). The 2022 Credit Agreement among other things: (i) maintains the total commitment under the line credit of $600.0 million (the "Revolving Credit Facility") and provides an unsecured term loan in the initial amount of $250.0 million (the "Term Loan") with a scheduled maturity date of June 30, 2027; (ii) extended the maturity date of the Revolving Credit Facility from July 15, 2022 to June 30, 2026, with two six-month extensions at the Company’s election subject to specified conditions and subject to payment of an extension fee; (iii) reduced the interest rate margins applicable to SOFR revolving loans; and (iv) provides for an additional interest rate option based on a floating SOFR rate. In connection with the amendments, the Company capitalized $4.7 million and $2.0 million in financing costs, related to the Revolving Credit Facility and the Term Loan, respectively. The financing costs will be amortized through the maturity dates for each of the Revolving Credit Facility and the Term Loan. Under the 2022 Credit Agreement, the Company may, subject to specified terms and conditions (including receipt of commitments from one or more lenders, whether or not currently parties to the 2022 Credit Agreement), elect to increase the amount of the Revolving Credit Facility and/or Term Loan or request one or more new pari passu tranches of unsecured term loans (each, an "Incremental Facility"), provided that the aggregate amount of all such increases is limited to $500.0 million. Up to $50.0 million of borrowing availability under the Restated Credit Agreement is available for the issuance of letter of credits. Borrowings under the Revolving Credit Facility bear interest at a rate equal to either (i) the SOFR rate plus a margin of 72.5 to 140 basis points, or (ii) a base rate plus a margin of 0 to 40 basis points: and the Term Loan and borrowings under an Incremental Facility bear interest at a rate equal to either (i) the SOFR rate plus a margin of 80 to 160 basis points, or (ii) a base rate plus a margin of 0 to 60 basis points. The applicable margin will be determined based upon the unsecured senior debt rating of the Operating Partnership or the absence of such a rating. The Company also pays a quarterly facility fee on the total commitments under the Revolving Credit Facility. As of June 30, 2022, based on the Operating Partnership's unsecured senior debt rating, the applicable margin for SOFR revolving loans under the Revolving Credit Facility was 105 basis points (excluding the applicable facility fee rate of 25 basis points) and was 120.0 basis points for the Term Loan, plus, in each case, a daily SOFR adjustment of 10 basis points. The terms of the 2022 Credit Agreement require that the Company maintain customary financial and other covenants, including: (i) a fixed charge coverage ratio greater than or equal to 1.5 to 1.00; (ii) a leverage ratio less than or equal to 0.60 to 1.00, subject to specified exceptions; (iii) a ratio of unsecured indebtedness to unencumbered asset value less than or equal to 0.60 to 1.00, subject to specified exceptions; (iv) a ratio of secured indebtedness to total asset value less than or equal to 0.40 to 1.00; and (v) a ratio of unencumbered cash flow to interest expense on unsecured debt greater than 1.75 to 1.00. In addition, the 2022 Credit Agreement restricts payments of dividends and distributions on shares in excess of 95% of the Company's funds from operations (FFO) except to the extent necessary to enable the Company to continue to qualify as a REIT for federal income tax purposes. During the six months ended June 30, 2022, the weighted-average interest rate on unsecured credit facility borrowings was 1.72% resulting in $1.2 million of interest expense. As of June 30, 2022, the Company had $381.7 million of available borrowings under its unsecured credit facility, net of $4.3 million in letters of credit outstanding. 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 June 30, 2022. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. As of June 30, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2022 (six months remaining) $ — 2023 350,000 2024 350,000 2025 — 2026 214,000 Thereafter 1,128,610 Total principal payments 2,042,610 Net unamortized premiums/(discounts) 7,212 Net deferred financing costs (7,063) Outstanding indebtedness $ 2,042,759 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 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): June 30, 2022 December 31, 2021 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,502,102 $ 1,461,960 $ 1,502,368 $ 1,588,780 Variable rate debt $ 540,657 $ 542,610 $ 351,218 $ 344,754 Notes receivable $ 44,430 $ 44,058 $ 44,430 $ 45,230 (a) Net of deferred financing costs of $5.1 million and $5.8 million for unsecured notes payable and $2.0 million and $0.4 million for variable rate debt as of June 30, 2022 and December 31, 2021. The Company used quoted market prices as of June 30, 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 June 30, 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 June 30, 2022. Current estimates of fair value may differ from the amounts presented herein. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 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 June 30, 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 6/30/2022 12/31/2021 6/30/2022 12/31/2021 Assets Swap Interest Rate Cash Flow (a) $ 250,000 $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ 415 $ (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 | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 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 June 30, 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 |
BENEFICIARIES' EQUITY OF THE PA
BENEFICIARIES' EQUITY OF THE PARENT COMPANY | 6 Months Ended |
Jun. 30, 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 June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 4,651 $ 4,651 $ (175) $ (175) Net (income) loss attributable to noncontrolling interests (14) (14) 8 8 Nonforfeitable dividends allocated to unvested restricted shareholders (98) (98) (94) (94) Net income (loss) attributable to common shareholders $ 4,539 $ 4,539 $ (261) $ (261) Denominator Weighted-average shares outstanding 171,527,031 171,527,031 170,848,894 170,848,894 Contingent securities/Share based compensation — 733,398 — — Weighted-average shares outstanding 171,527,031 172,260,429 170,848,894 170,848,894 Earnings per Common Share: Net income attributable to common shareholders $ 0.03 $ 0.03 $ — $ — Six Months Ended June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 10,752 $ 10,752 $ 6,789 $ 6,789 Net income attributable to noncontrolling interests (22) (22) (35) (35) Nonforfeitable dividends allocated to unvested restricted shareholders (246) (246) (240) (240) Net income attributable to common shareholders $ 10,484 $ 10,484 $ 6,514 $ 6,514 Denominator Weighted-average shares outstanding 171,411,631 171,411,631 170,737,437 170,737,437 Contingent securities/Share based compensation — 1,163,777 — 1,258,682 Weighted-average shares outstanding 171,411,631 172,575,408 170,737,437 171,996,119 Earnings per Common Share: Net income attributable to common shareholders $ 0.06 $ 0.06 $ 0.04 $ 0.04 Redeemable common limited partnership units totaling 516,467 at June 30, 2022 and 823,983 at June 30, 2021, were excluded from the diluted earnings per share computations because they are not dilutive. Unvested restricted shares are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the three and six months ended June 30, 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 May 18, 2022, the Parent Company declared a distribution of $0.19 per common share, totaling $32.8 million, which was paid on July 20, 2022 to shareholders of record as of July 6, 2022. |
PARTNERS' EQUITY OF THE PARENT
PARTNERS' EQUITY OF THE PARENT COMPANY | 6 Months Ended |
Jun. 30, 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 June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income (loss) $ 4,651 $ 4,651 $ (175) $ (175) Net loss attributable to noncontrolling interests 2 2 1 1 Nonforfeitable dividends allocated to unvested restricted unitholders (98) (98) (94) (94) Net income (loss) attributable to common unitholders $ 4,555 $ 4,555 $ (268) $ (268) Denominator Weighted-average units outstanding 172,043,498 172,043,498 171,792,415 171,792,415 Contingent securities/Share based compensation — 733,398 — — Total weighted-average units outstanding 172,043,498 172,776,896 171,792,415 171,792,415 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.03 $ 0.03 $ — $ — Six Months Ended June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 10,752 $ 10,752 $ 6,789 $ 6,789 Net loss attributable to noncontrolling interests 4 4 2 2 Nonforfeitable dividends allocated to unvested restricted unitholders (246) (246) (240) (240) Net income attributable to common unitholders $ 10,510 $ 10,510 $ 6,551 $ 6,551 Denominator Weighted-average units outstanding 171,985,863 171,985,863 171,699,909 171,699,909 Contingent securities/Share based compensation — 1,163,777 — 1,258,682 Total weighted-average units outstanding 171,985,863 173,149,640 171,699,909 172,958,591 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.06 $ 0.06 $ 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 and six months ended June 30, 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 May 18, 2022, the Operating Partnership declared a distribution of $0.19 per common partnership unit, totaling $32.8 million, which was paid on July 20, 2022 to unitholders of record as of July 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 six months ended June 30, 2022 and June 30, 2021, the Company did not repurchase any units. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 13. SEGMENT INFORMATION As of June 30, 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: June 30, 2022 December 31, 2021 Philadelphia CBD $ 1,506,350 $ 1,460,510 Pennsylvania Suburbs 870,510 866,223 Austin, Texas 794,734 778,145 Metropolitan Washington, D.C. 287,215 280,921 Other 86,293 86,803 Operating Properties $ 3,545,102 $ 3,472,602 Corporate Right of use asset - operating leases, net $ 19,988 $ 20,313 Construction-in-progress $ 366,823 $ 277,237 Land held for development $ 93,887 $ 114,604 Prepaid leasehold interests in land held for development, net $ 35,576 $ 27,762 Net operating income: Three Months Ended June 30, 2022 2021 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Philadelphia CBD $ 55,426 $ (20,538) $ 34,888 $ 51,445 $ (18,259) $ 33,186 Pennsylvania Suburbs 31,333 (10,258) 21,075 30,294 (9,777) 20,517 Austin, Texas 23,921 (10,438) 13,483 25,513 (9,962) 15,551 Metropolitan Washington, D.C. 5,486 (3,116) 2,370 4,812 (3,902) 910 Other 3,919 (2,342) 1,577 3,662 (2,528) 1,134 Corporate 3,957 (2,957) 1,000 4,376 (2,999) 1,377 Operating properties $ 124,042 $ (49,649) $ 74,393 $ 120,102 $ (47,427) $ 72,675 Six Months Ended June 30, 2022 2021 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Philadelphia CBD $ 108,897 $ (40,281) $ 68,616 $ 102,672 $ (35,670) 67,002 Pennsylvania Suburbs 63,140 (20,416) 42,724 62,034 (20,471) 41,563 Austin, Texas 48,836 (20,731) 28,105 51,688 (19,682) 32,006 Metropolitan Washington, D.C. 10,681 (6,544) 4,137 9,487 (8,101) 1,386 Other 7,523 (4,352) 3,171 6,875 (4,810) 2,065 Corporate 12,470 (5,243) 7,227 8,115 (5,367) 2,748 Operating properties $ 251,547 $ (97,567) $ 153,980 $ 240,871 $ (94,101) $ 146,770 Unconsolidated real estate ventures: Investment in real estate ventures Equity in income (loss) of real estate venture As of Three Months Ended June 30, June 30, 2022 December 31, 2021 2022 2021 Philadelphia CBD $ 341,748 $ 317,959 $ (2,574) $ (4,661) Metropolitan Washington, D.C. 85,614 85,867 (381) (778) Mid-Atlantic Office JV 31,478 31,680 (101) 117 MAP Venture (29,594) (24,396) (1,925) (1,918) Total $ 429,246 $ 411,110 $ (4,981) $ (7,240) 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) $ 4,651 $ (175) $ 10,752 $ 6,789 Plus: Interest expense 16,341 15,490 32,083 31,783 Interest expense - amortization of deferred financing costs 805 709 1,514 1,418 Depreciation and amortization 43,959 42,785 87,741 83,128 General and administrative expenses 8,328 8,356 18,328 14,940 Equity in loss of unconsolidated real estate ventures 4,981 7,240 9,544 14,164 Less: Interest and investment income 449 1,677 889 3,351 Income tax provision (48) (15) (75) (34) Net gain on disposition of real estate 144 68 144 142 Net gain on sale of undepreciated real estate 4,127 — 5,024 1,993 Consolidated net operating income $ 74,393 $ 72,675 $ 153,980 $ 146,770 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. 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 June 30, 2022, the Company’s unconsolidated real estate ventures had aggregate indebtedness of $1,224.5 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 six months ended June 30, 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 July 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. On July 29, 2022, the One Uptown joint ventures closed on two construction loans. See Note 3, ''Real Estate Investments,” to our Consolidated Financial Statements for further information. In connection with the Schuylkill Yards Project, the Company entered into a neighborhood engagement program and, as of June 30, 2022, had $7.2 million of future fixed contractual obligations. The Company also committed to fund additional contributions under the program. As of June 30, 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 $5.9 million has been contributed by the Company as of June 30, 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 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS On July 14, 2022, the Company formed a joint venture, with an unaffiliated third party, to develop an approximately 417,000 square foot life science/office building under a long-term ground lease located at 3151 Market Street in Philadelphia, Pennsylvania. The estimated project cost is approximately $307 million, and the joint venture partner has agreed, subject to customary funding conditions, to fund up to approximately $55 million of the project costs in exchange for a 45% preferred equity interest in the venture. We have agreed to provide a completion guaranty in connection with the development of the project. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 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 ("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 June 30, 2022, the results of its operations for the three and six months ended June 30, 2022 and 2021 and its cash flows for the six months ended June 30, 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 GAAP 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. During the second quarter of 2022, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. In addition, the Company elected to apply the hedge accounting expedients related to changes in critical terms of derivative or hedged transactions, and bilaterally negotiated contract changes for the refinance of the Company's term loan and associated interest rate swap. 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2022: Number of Properties Rentable Square Feet Office properties 69 12,054,491 Mixed-use properties 5 942,334 Core Properties 74 12,996,825 Development property 1 205,803 Redevelopment properties 3 436,659 The Properties 78 13,639,287 |
REAL ESTATE INVESTMENTS (Tables
REAL ESTATE INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Real Estate [Abstract] | |
Schedule of Gross Carrying Value of Operating Properties | As of June 30, 2022 and December 31, 2021, the gross carrying value of the operating properties was as follows (in thousands): June 30, 2022 December 31, 2021 Land $ 410,891 $ 410,144 Building and improvements 2,710,368 2,653,492 Tenant improvements 423,843 408,966 Total $ 3,545,102 $ 3,472,602 |
Summary of Properties Acquired | The following table summarizes the property acquisitions during the six months ended June 30, 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 3151 Market Street (a) April 29, 2022 Philadelphia, PA Leasehold Interest 0.8 acres $ 27,349 (a) On April 29, 2022, the Company acquired, through a 99-year ground lease, the leasehold interest in a 0.8-acre land parcel, located at 3151 Market Street, in Philadelphia, Pennsylvania. The Company prepaid $19.5 million of the ground lease, representing 500,000 square feet of buildable floor to area ratio ("FAR") to be used for the development of 3151 Market Street, and paid $7.8 million for 200,000 square feet of FAR density usable pursuant to the Schuylkill Yards Project master development agreement. The ground lease and additional density are included in construction in progress and prepaid leasehold interests in land held for development, respectively, in the consolidated balance sheets. See Note 15, ''Subsequent Events," for further information. |
Summary of Properties Sold | The following table summarizes the property dispositions during the six months ended June 30, 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 25 M Street April 14, 2022 Washington, D.C. Land 0.8 acres $ 29,675 $ 3,436 Gibbsboro Portfolio June 28, 2022 Gibbsboro, NJ Office/Land 42,809/4.0 acres $ 4,100 $ 831 (b) (a) Gain/(Loss) on Sale is net of closing and other transaction related costs. (b) Includes $0.7 million of gain on sale of undepreciated real estate and $0.1 million of gain on disposition of real estate included within the consolidated statements of operations for the six months ended June 30, 2022. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Net property $ 1,962,902 $ 1,563,263 Other assets 516,328 434,687 Other liabilities 415,816 331,947 Debt, net 1,218,561 956,668 Equity (a) 844,853 709,335 (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 and six month periods ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Revenue $ 64,957 $ 53,228 $ 118,173 $ 106,585 Operating expenses (31,671) (28,629) (60,263) (57,616) Interest expense, net (11,663) (8,017) (19,132) (15,391) Depreciation and amortization (27,927) (25,500) (49,210) (50,393) Net loss $ (6,304) $ (8,918) $ (10,432) $ (16,815) Ownership interest % Various Various Various Various Company's share of net loss $ (4,822) $ (7,281) $ (9,439) $ (13,822) Basis adjustments and other (159) 41 (105) (342) Equity in loss of unconsolidated real estate ventures $ (4,981) $ (7,240) $ (9,544) $ (14,164) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2022 and 2021 (in thousands): Three Months Ended June 30, Six Months Ended June 30, Lease Revenue 2022 2021 2022 2021 Fixed contractual payments $ 88,672 $ 86,117 $ 177,435 $ 172,497 Variable lease payments 25,234 22,060 49,565 46,208 Total $ 113,906 $ 108,177 $ 227,000 $ 218,705 |
INTANGIBLE ASSETS AND LIABILI_2
INTANGIBLE ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets and Liabilities | As of June 30, 2022 and December 31, 2021, the Company’s intangible assets/liabilities were comprised of the following (in thousands): June 30, 2022 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 59,582 $ (36,770) $ 22,812 Tenant relationship value 167 (100) 67 Above market leases acquired 331 (195) 136 Total intangible assets, net $ 60,080 $ (37,065) $ 23,015 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 22,268 $ (10,991) $ 11,277 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 June 30, 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 (six months remaining) $ 4,100 $ 883 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 $ 23,015 $ 11,277 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Consolidated Debt Obligations | The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of June 30, 2022 and December 31, 2021 (in thousands): June 30, 2022 December 31, 2021 Effective Maturity UNSECURED DEBT $600 million Unsecured Credit Facility $ 214,000 $ 23,000 SOFR + 1.15% June 2026 (a) Term Loan - Swapped to fixed 250,000 250,000 2.87% June 2027 (b) $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 2,042,610 1,851,610 Plus: original issue premium (discount), net 7,212 8,187 Less: deferred financing costs (7,063) (6,211) Total unsecured indebtedness $ 2,042,759 $ 1,853,586 (a) Spread includes a 10 basis point daily SOFR adjustment. (b) On June 30, 2022, the Company executed the 2022 Credit Agreement (as defined below), that provides for, among other things, the Term Loan (as defined below), which replaced the Company's $250.0 million term loan that had been scheduled to mature on October 22, 2022. As of June 30, 2022, based on the Operating Partnership's unsecured senior debt rating, the applicable margin for the Term Loan was 120.0 basis points, plus a daily SOFR adjustment of 10 basis points. Through a series of interest rate swaps, the $250.0 million principal amount of the Term Loan has a fixed interest rate of 2.87% until October 8, 2022. |
Schedule of Maturities of Long-term Debt | As of June 30, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2022 (six months remaining) $ — 2023 350,000 2024 350,000 2025 — 2026 214,000 Thereafter 1,128,610 Total principal payments 2,042,610 Net unamortized premiums/(discounts) 7,212 Net deferred financing costs (7,063) Outstanding indebtedness $ 2,042,759 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 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): June 30, 2022 December 31, 2021 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,502,102 $ 1,461,960 $ 1,502,368 $ 1,588,780 Variable rate debt $ 540,657 $ 542,610 $ 351,218 $ 344,754 Notes receivable $ 44,430 $ 44,058 $ 44,430 $ 45,230 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 6/30/2022 12/31/2021 6/30/2022 12/31/2021 Assets Swap Interest Rate Cash Flow (a) $ 250,000 $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ 415 $ (2,461) $ 250,000 $ 250,000 (a) Hedging unsecured variable rate debt. |
BENEFICIARIES' EQUITY OF THE _2
BENEFICIARIES' EQUITY OF THE PARENT COMPANY (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 4,651 $ 4,651 $ (175) $ (175) Net (income) loss attributable to noncontrolling interests (14) (14) 8 8 Nonforfeitable dividends allocated to unvested restricted shareholders (98) (98) (94) (94) Net income (loss) attributable to common shareholders $ 4,539 $ 4,539 $ (261) $ (261) Denominator Weighted-average shares outstanding 171,527,031 171,527,031 170,848,894 170,848,894 Contingent securities/Share based compensation — 733,398 — — Weighted-average shares outstanding 171,527,031 172,260,429 170,848,894 170,848,894 Earnings per Common Share: Net income attributable to common shareholders $ 0.03 $ 0.03 $ — $ — Six Months Ended June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 10,752 $ 10,752 $ 6,789 $ 6,789 Net income attributable to noncontrolling interests (22) (22) (35) (35) Nonforfeitable dividends allocated to unvested restricted shareholders (246) (246) (240) (240) Net income attributable to common shareholders $ 10,484 $ 10,484 $ 6,514 $ 6,514 Denominator Weighted-average shares outstanding 171,411,631 171,411,631 170,737,437 170,737,437 Contingent securities/Share based compensation — 1,163,777 — 1,258,682 Weighted-average shares outstanding 171,411,631 172,575,408 170,737,437 171,996,119 Earnings per Common Share: Net income attributable to common shareholders $ 0.06 $ 0.06 $ 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 June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income (loss) $ 4,651 $ 4,651 $ (175) $ (175) Net loss attributable to noncontrolling interests 2 2 1 1 Nonforfeitable dividends allocated to unvested restricted unitholders (98) (98) (94) (94) Net income (loss) attributable to common unitholders $ 4,555 $ 4,555 $ (268) $ (268) Denominator Weighted-average units outstanding 172,043,498 172,043,498 171,792,415 171,792,415 Contingent securities/Share based compensation — 733,398 — — Total weighted-average units outstanding 172,043,498 172,776,896 171,792,415 171,792,415 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.03 $ 0.03 $ — $ — Six Months Ended June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 10,752 $ 10,752 $ 6,789 $ 6,789 Net loss attributable to noncontrolling interests 4 4 2 2 Nonforfeitable dividends allocated to unvested restricted unitholders (246) (246) (240) (240) Net income attributable to common unitholders $ 10,510 $ 10,510 $ 6,551 $ 6,551 Denominator Weighted-average units outstanding 171,985,863 171,985,863 171,699,909 171,699,909 Contingent securities/Share based compensation — 1,163,777 — 1,258,682 Total weighted-average units outstanding 171,985,863 173,149,640 171,699,909 172,958,591 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.06 $ 0.06 $ 0.04 $ 0.04 |
PARTNERS' EQUITY OF THE PAREN_2
PARTNERS' EQUITY OF THE PARENT COMPANY (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 4,651 $ 4,651 $ (175) $ (175) Net (income) loss attributable to noncontrolling interests (14) (14) 8 8 Nonforfeitable dividends allocated to unvested restricted shareholders (98) (98) (94) (94) Net income (loss) attributable to common shareholders $ 4,539 $ 4,539 $ (261) $ (261) Denominator Weighted-average shares outstanding 171,527,031 171,527,031 170,848,894 170,848,894 Contingent securities/Share based compensation — 733,398 — — Weighted-average shares outstanding 171,527,031 172,260,429 170,848,894 170,848,894 Earnings per Common Share: Net income attributable to common shareholders $ 0.03 $ 0.03 $ — $ — Six Months Ended June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 10,752 $ 10,752 $ 6,789 $ 6,789 Net income attributable to noncontrolling interests (22) (22) (35) (35) Nonforfeitable dividends allocated to unvested restricted shareholders (246) (246) (240) (240) Net income attributable to common shareholders $ 10,484 $ 10,484 $ 6,514 $ 6,514 Denominator Weighted-average shares outstanding 171,411,631 171,411,631 170,737,437 170,737,437 Contingent securities/Share based compensation — 1,163,777 — 1,258,682 Weighted-average shares outstanding 171,411,631 172,575,408 170,737,437 171,996,119 Earnings per Common Share: Net income attributable to common shareholders $ 0.06 $ 0.06 $ 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 June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income (loss) $ 4,651 $ 4,651 $ (175) $ (175) Net loss attributable to noncontrolling interests 2 2 1 1 Nonforfeitable dividends allocated to unvested restricted unitholders (98) (98) (94) (94) Net income (loss) attributable to common unitholders $ 4,555 $ 4,555 $ (268) $ (268) Denominator Weighted-average units outstanding 172,043,498 172,043,498 171,792,415 171,792,415 Contingent securities/Share based compensation — 733,398 — — Total weighted-average units outstanding 172,043,498 172,776,896 171,792,415 171,792,415 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.03 $ 0.03 $ — $ — Six Months Ended June 30, 2022 2021 Basic Diluted Basic Diluted Numerator Net income $ 10,752 $ 10,752 $ 6,789 $ 6,789 Net loss attributable to noncontrolling interests 4 4 2 2 Nonforfeitable dividends allocated to unvested restricted unitholders (246) (246) (240) (240) Net income attributable to common unitholders $ 10,510 $ 10,510 $ 6,551 $ 6,551 Denominator Weighted-average units outstanding 171,985,863 171,985,863 171,699,909 171,699,909 Contingent securities/Share based compensation — 1,163,777 — 1,258,682 Total weighted-average units outstanding 171,985,863 173,149,640 171,699,909 172,958,591 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.06 $ 0.06 $ 0.04 $ 0.04 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of 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: June 30, 2022 December 31, 2021 Philadelphia CBD $ 1,506,350 $ 1,460,510 Pennsylvania Suburbs 870,510 866,223 Austin, Texas 794,734 778,145 Metropolitan Washington, D.C. 287,215 280,921 Other 86,293 86,803 Operating Properties $ 3,545,102 $ 3,472,602 Corporate Right of use asset - operating leases, net $ 19,988 $ 20,313 Construction-in-progress $ 366,823 $ 277,237 Land held for development $ 93,887 $ 114,604 Prepaid leasehold interests in land held for development, net $ 35,576 $ 27,762 Net operating income: Three Months Ended June 30, 2022 2021 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Philadelphia CBD $ 55,426 $ (20,538) $ 34,888 $ 51,445 $ (18,259) $ 33,186 Pennsylvania Suburbs 31,333 (10,258) 21,075 30,294 (9,777) 20,517 Austin, Texas 23,921 (10,438) 13,483 25,513 (9,962) 15,551 Metropolitan Washington, D.C. 5,486 (3,116) 2,370 4,812 (3,902) 910 Other 3,919 (2,342) 1,577 3,662 (2,528) 1,134 Corporate 3,957 (2,957) 1,000 4,376 (2,999) 1,377 Operating properties $ 124,042 $ (49,649) $ 74,393 $ 120,102 $ (47,427) $ 72,675 Six Months Ended June 30, 2022 2021 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Philadelphia CBD $ 108,897 $ (40,281) $ 68,616 $ 102,672 $ (35,670) 67,002 Pennsylvania Suburbs 63,140 (20,416) 42,724 62,034 (20,471) 41,563 Austin, Texas 48,836 (20,731) 28,105 51,688 (19,682) 32,006 Metropolitan Washington, D.C. 10,681 (6,544) 4,137 9,487 (8,101) 1,386 Other 7,523 (4,352) 3,171 6,875 (4,810) 2,065 Corporate 12,470 (5,243) 7,227 8,115 (5,367) 2,748 Operating properties $ 251,547 $ (97,567) $ 153,980 $ 240,871 $ (94,101) $ 146,770 Unconsolidated real estate ventures: Investment in real estate ventures Equity in income (loss) of real estate venture As of Three Months Ended June 30, June 30, 2022 December 31, 2021 2022 2021 Philadelphia CBD $ 341,748 $ 317,959 $ (2,574) $ (4,661) Metropolitan Washington, D.C. 85,614 85,867 (381) (778) Mid-Atlantic Office JV 31,478 31,680 (101) 117 MAP Venture (29,594) (24,396) (1,925) (1,918) Total $ 429,246 $ 411,110 $ (4,981) $ (7,240) |
Schedule of 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income (loss) $ 4,651 $ (175) $ 10,752 $ 6,789 Plus: Interest expense 16,341 15,490 32,083 31,783 Interest expense - amortization of deferred financing costs 805 709 1,514 1,418 Depreciation and amortization 43,959 42,785 87,741 83,128 General and administrative expenses 8,328 8,356 18,328 14,940 Equity in loss of unconsolidated real estate ventures 4,981 7,240 9,544 14,164 Less: Interest and investment income 449 1,677 889 3,351 Income tax provision (48) (15) (75) (34) Net gain on disposition of real estate 144 68 144 142 Net gain on sale of undepreciated real estate 4,127 — 5,024 1,993 Consolidated net operating income $ 74,393 $ 72,675 $ 153,980 $ 146,770 |
ORGANIZATION OF THE PARENT CO_3
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP- Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 a ft² property parcel | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of real estate properties | property | 78 |
Rentable area (in square feet) | 13,639,287 |
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 | 164.6 |
Lease agreement term | 99 years |
Area of additional undeveloped parcels of land with option to purchase (in acres) | a | 54.7 |
Total potential development capacity (in square feet) | 13,100,000 |
Parent Company | Parcel of land | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term | 99 years |
Parent Company | Leashold Interest Land | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Areas of land held for development (in acres) | a | 1.6 |
Number of parcels of land | parcel | 2 |
Wholly-owned Management Company Subsidiaries | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Rentable area (in square feet) | 23,000,000 |
Wholly-owned Management Company Subsidiaries | Wholly Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Rentable area (in square feet) | 13,600,000 |
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) | Jun. 30, 2022 ft² property |
Real Estate Properties [Line Items] | |
Number of Properties | property | 78 |
Rentable area (in square feet) | ft² | 13,639,287 |
Core Properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 74 |
Rentable area (in square feet) | ft² | 12,996,825 |
Office properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 69 |
Rentable area (in square feet) | ft² | 12,054,491 |
Mixed-use properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 5 |
Rentable area (in square feet) | ft² | 942,334 |
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 | 436,659 |
REAL ESTATE INVESTMENTS - Gross
REAL ESTATE INVESTMENTS - Gross Carrying Value of Operating Properties (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 410,891 | $ 410,144 |
Building and improvements | 2,710,368 | 2,653,492 |
Tenant improvements | 423,843 | 408,966 |
Total | $ 3,545,102 | $ 3,472,602 |
REAL ESTATE INVESTMENTS - Summa
REAL ESTATE INVESTMENTS - Summary of Properties Acquired (Details) $ in Thousands | 6 Months Ended | |||||
Apr. 29, 2022 USD ($) | Jan. 21, 2022 USD ($) a | Jun. 30, 2022 USD ($) ft² | Jun. 30, 2021 USD ($) | Apr. 29, 2022 ft² | Apr. 29, 2022 a | |
Real Estate [Line Items] | ||||||
Purchase Price | $ 3,446 | $ 0 | ||||
Rentable area (in square feet) | ft² | 13,639,287 | |||||
Land | 631 Park Avenue | ||||||
Real Estate [Line Items] | ||||||
Rentable Square Feet/Acres | a | 3.3 | |||||
Purchase Price | $ 3,650 | |||||
Land | 3151 Market Street | ||||||
Real Estate [Line Items] | ||||||
Rentable Square Feet/Acres | 0.8 | 0.8 | ||||
Purchase Price | $ 27,349 | |||||
Lease agreement term | 99 years | |||||
Prepaid rent | $ 19,500 | |||||
Rentable area (in square feet) | ft² | 500,000 | |||||
Operating lease costs, capitalized | $ 7,800 | |||||
Land | Schuylkill Yards Project | ||||||
Real Estate [Line Items] | ||||||
Rentable area (in square feet) | ft² | 200,000 |
REAL ESTATE INVESTMENTS - Sum_2
REAL ESTATE INVESTMENTS - Summary of Property Dispositions (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 28, 2022 USD ($) | Apr. 14, 2022 USD ($) a | Jan. 20, 2022 USD ($) a | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 28, 2022 a | Jun. 28, 2022 ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net gain on disposition of real estate | $ 144 | $ 68 | $ 144 | $ 142 | |||||
Net gain on sale of undepreciated real estate | $ 4,127 | $ 0 | 5,024 | $ 1,993 | |||||
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 | ||||||||
Net gain on disposition of real estate | $ 897 | ||||||||
Land | 25 M Street | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Rentable Square Feet/Acres | a | 0.8 | ||||||||
Sales Price | $ 29,675 | ||||||||
Net gain on disposition of real estate | $ 3,436 | ||||||||
Land | Gibbsboro Portfolio | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net gain on disposition of real estate | $ 700 | ||||||||
Office/Land | Gibbsboro Portfolio | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Rentable Square Feet/Acres | 4 | 42,809 | |||||||
Sales Price | 4,100 | ||||||||
Net gain on disposition of real estate | $ 831 | ||||||||
Office properties | Gibbsboro Portfolio | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Net gain on disposition of real estate | $ 100 |
REAL ESTATE INVESTMENTS - Narra
REAL ESTATE INVESTMENTS - Narrative (Details) $ in Thousands | 6 Months Ended | ||||
Jul. 29, 2022 USD ($) loan | Jun. 30, 2022 USD ($) ft² property | Jul. 28, 2022 loan | Dec. 31, 2021 USD ($) | Dec. 01, 2021 USD ($) ft² property apartment | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Investment in real estate ventures | $ 429,246 | $ 411,110 | |||
Rentable area (in square feet) | ft² | 13,639,287 | ||||
Principal balance outstanding | $ 2,042,610 | ||||
Unsecured Debt | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Principal balance outstanding | 2,042,610 | 1,851,610 | |||
Unsecured Debt | $600 million Unsecured Credit Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Principal balance outstanding | $ 214,000 | $ 23,000 | |||
Unsecured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | $600 million Unsecured Credit Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Spread on variable rate | 1.15% | ||||
Unsecured Debt | Daily SOFR Adjustment | $600 million Unsecured Credit Facility | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Spread on variable rate | 0.10% | ||||
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 | $ 61,000 | ||||
Construction loan, percentage of total cost | 63% | ||||
One Uptown Venture | Subsequent Event | Carry Guarantee | Loans Payable | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Guarantee percent | 30% | ||||
One Uptown Venture | Subsequent Event | Limited Payment Guarantee | Loans Payable | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Guarantee percent | 15% | ||||
One Uptown Venture | Construction Loans | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Principal balance outstanding | $ 206,700 | ||||
One Uptown Venture | Construction Loans | Subsequent Event | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Principal balance outstanding | $ 121,700 | ||||
Number of loans closed | loan | 2 | 2 | |||
One Uptown Venture | Construction Loans | Subsequent Event | Multifamily Joint Venture | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Principal balance outstanding | $ 85,000 | ||||
One Uptown Venture | Construction Loans | Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Spread on variable rate | 3% | ||||
One Uptown Venture | Construction Loans | Subsequent Event | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Multifamily Joint Venture | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Spread on variable rate | 2.45% | ||||
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% | ||||
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% | ||||
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 | 2 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 17, 2022 USD ($) ft² | Jun. 30, 2022 USD ($) a ft² property apartment | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) a ft² property apartment | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties | property | 78 | 78 | ||||
Investment in unconsolidated real estate ventures | $ 458,840 | $ 458,840 | $ 435,506 | |||
Accounts receivable | $ 13,584 | $ 13,584 | 11,875 | |||
Rentable area (in square feet) | ft² | 13,639,287 | 13,639,287 | ||||
Purchase price | $ 3,446 | $ 0 | ||||
Real Estate Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Accounts receivable | $ 2,800 | 2,800 | $ 2,500 | |||
Management Fees | Real Estate Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Service and other revenue | 2,100 | $ 2,100 | 4,000 | 4,100 | ||
Leasing Commission Income | Real Estate Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Service and other revenue | 800 | $ 600 | 1,100 | $ 1,900 | ||
Unconsolidated Real Estate Ventures | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in unconsolidated real estate ventures | $ 429,300 | $ 429,300 | ||||
Unconsolidated Real Estate Ventures | Minimum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 15% | 15% | ||||
Unconsolidated Real Estate Ventures | Maximum | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 70% | 70% | ||||
Unconsolidated Real Estate Ventures | Office properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of unconsolidated investments in Real Estate Ventures | property | 5 | 5 | ||||
Rentable area (in square feet) | ft² | 9,100,000 | 9,100,000 | ||||
Unconsolidated Real Estate Ventures | Other Liabilities | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in unconsolidated real estate ventures | $ 29,600 | $ 29,600 | ||||
Unconsolidated Real Estate Ventures | Unconsolidated Properties | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of real estate properties | property | 10 | 10 | ||||
Number of properties with negative investment balances | property | 1 | 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 | 2 | ||||
Area of land (in acres) | a | 1.4 | 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 | 1 | ||||
Area of land (in acres) | a | 1 | 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 | 1 | ||||
Rentable area (in square feet) | ft² | 200,000 | 200,000 | ||||
Number of apartment units (in units) | apartment | 250 | 250 | ||||
Unconsolidated Real Estate Ventures | Residential Tower | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Number of unconsolidated investments in Real Estate Ventures | property | 1 | 1 | ||||
Number of apartment units (in units) | apartment | 321 | 321 | ||||
Cira Square REIT, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, ownership percentage | 20% | |||||
Gross purchase price | $ 383,000 | |||||
Purchase price | $ 28,600 | |||||
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 | Secured Debt | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Debt instrument, face amount | $ 257,700 | |||||
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 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Equity Method Investments [Line Items] | ||||||
Net property | $ 3,052,268 | $ 2,955,068 | ||||
Other assets | 124,486 | 133,094 | ||||
Other liabilities | 52,359 | 48,683 | ||||
Debt, net | 2,042,759 | |||||
Equity | 1,651,563 | $ 1,675,863 | 1,701,219 | $ 1,751,053 | $ 1,782,254 | $ 1,804,648 |
Investment In Nonconsolidated Real Estate | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Net property | 1,962,902 | 1,563,263 | ||||
Other assets | 516,328 | 434,687 | ||||
Other liabilities | 415,816 | 331,947 | ||||
Debt, net | 1,218,561 | 956,668 | ||||
Equity | $ 844,853 | $ 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 | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | $ 124,042 | $ 120,102 | $ 251,547 | $ 240,871 | ||
Operating expenses | (101,936) | (98,568) | (203,636) | (192,169) | ||
Interest expense, net | (16,341) | (15,490) | (32,083) | (31,783) | ||
Depreciation and amortization | (43,959) | (42,785) | (87,741) | (83,128) | ||
Net income (loss) | 4,651 | $ 6,101 | (175) | $ 6,964 | 10,752 | 6,789 |
Equity in loss of unconsolidated real estate ventures | (4,981) | (7,240) | (9,544) | (14,164) | ||
Investment In Nonconsolidated Real Estate | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | 64,957 | 53,228 | 118,173 | 106,585 | ||
Operating expenses | (31,671) | (28,629) | (60,263) | (57,616) | ||
Interest expense, net | (11,663) | (8,017) | (19,132) | (15,391) | ||
Depreciation and amortization | (27,927) | (25,500) | (49,210) | (50,393) | ||
Net income (loss) | (6,304) | (8,918) | (10,432) | (16,815) | ||
Company's share of net loss | (4,822) | (7,281) | (9,439) | (13,822) | ||
Basis adjustments and other | $ (159) | $ 41 | $ (105) | $ (342) |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Fixed contractual payments | $ 88,672 | $ 86,117 | $ 177,435 | $ 172,497 |
Variable lease payments | 25,234 | 22,060 | 49,565 | 46,208 |
Total | $ 113,906 | $ 108,177 | $ 227,000 | $ 218,705 |
INTANGIBLE ASSETS AND LIABILI_3
INTANGIBLE ASSETS AND LIABILITIES - Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Intangible Assets [Line Items] | ||
Intangible assets, total cost | $ 60,080 | $ 73,029 |
Intangible assets, accumulated amortization | (37,065) | (44,473) |
Intangible Assets, net | 23,015 | 28,556 |
Intangible liabilities, total cost | 22,268 | 27,025 |
Intangible liabilities, accumulated amortization | (10,991) | (14,044) |
Intangible Liabilities, net | 11,277 | 12,981 |
In-place lease value | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 59,582 | 72,376 |
Intangible assets, accumulated amortization | (36,770) | (44,066) |
Intangible Assets, net | 22,812 | 28,310 |
Tenant relationship value | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 167 | 167 |
Intangible assets, accumulated amortization | (100) | (97) |
Intangible Assets, net | 67 | 70 |
Above market leases acquired | ||
Intangible Assets [Line Items] | ||
Intangible assets, total cost | 331 | 486 |
Intangible assets, accumulated amortization | (195) | (310) |
Intangible Assets, net | $ 136 | $ 176 |
INTANGIBLE ASSETS AND LIABILI_4
INTANGIBLE ASSETS AND LIABILITIES - Annual Amortization of Intangible Assets, Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
2022 (six months remaining) | $ 4,100 | |
2023 | 6,724 | |
2024 | 4,433 | |
2025 | 3,255 | |
2026 | 1,195 | |
Thereafter | 3,308 | |
Intangible Assets, net | 23,015 | $ 28,556 |
Liabilities | ||
2022 (six months remaining) | 883 | |
2023 | 1,540 | |
2024 | 1,321 | |
2025 | 1,044 | |
2026 | 754 | |
Thereafter | 5,735 | |
Intangible Liabilities, net | $ 11,277 | $ 12,981 |
DEBT OBLIGATIONS - Consolidated
DEBT OBLIGATIONS - Consolidated Debt Obligations Outstanding (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Consolidated debt obligations | ||
Principal balance outstanding | $ 2,042,610,000 | |
Plus: original issue premium (discount), net | (7,212,000) | |
Less: deferred financing costs | (7,063,000) | |
Debt, net | 2,042,759,000 | |
Unsecured Debt | ||
Consolidated debt obligations | ||
Principal balance outstanding | 2,042,610,000 | $ 1,851,610,000 |
Plus: original issue premium (discount), net | 7,212,000 | 8,187,000 |
Less: deferred financing costs | (7,063,000) | (6,211,000) |
Debt, net | 2,042,759,000 | 1,853,586,000 |
Unsecured Debt | $600 million Unsecured Credit Facility | ||
Consolidated debt obligations | ||
Debt instrument, face amount | 600,000,000 | |
Principal balance outstanding | $ 214,000,000 | 23,000,000 |
Unsecured Debt | $600 million Unsecured Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.15% | |
Unsecured Debt | $600 million Unsecured Credit Facility | Daily SOFR Adjustment | ||
Consolidated debt obligations | ||
Spread on variable rate | 0.10% | |
Unsecured Debt | Term loan | ||
Consolidated debt obligations | ||
Principal balance outstanding | $ 250,000,000 | 250,000,000 |
Spread on variable rate | 1.20% | |
Effective interest rate | 2.87% | |
Unsecured Debt | Term loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Consolidated debt obligations | ||
Spread on variable rate | 1.20% | |
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 - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2022 USD ($) property | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Principal balance outstanding | $ 2,042,610,000 | |
Letters of credit outstanding | 4,300,000 | |
Line of Credit | Term loan | ||
Debt Instrument [Line Items] | ||
Capitalized financing costs | 2,000,000 | |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Principal balance outstanding | 2,042,610,000 | $ 1,851,610,000 |
Unsecured Debt | Term loan | ||
Debt Instrument [Line Items] | ||
Principal balance outstanding | $ 250,000,000 | $ 250,000,000 |
Spread on variable rate | 1.20% | |
Unsecured Debt | Term loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 1.20% | |
Unsecured Debt | Term loan | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 0.80% | |
Unsecured Debt | Term loan | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 0% | |
Unsecured Debt | Term loan | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 1.60% | |
Unsecured Debt | Term loan | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 0.60% | |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity (up to) | $ 50,000,000 | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity (up to) | 600,000,000 | |
Capitalized financing costs | 4,700,000 | |
Line of credit facility, accordion feature | $ 500,000,000 | |
Spread on variable rate | 0.25% | |
Weighted average interest rate | 1.72% | |
Interest expense | $ 1,200,000 | |
Available borrowings under its unsecured credit facility | $ 381,700,000 | |
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 1.05% | |
Revolving Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 0.725% | |
Revolving Credit Facility | Line of Credit | Minimum | Base Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 0% | |
Revolving Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 1.40% | |
Revolving Credit Facility | Line of Credit | Maximum | Base Rate | ||
Debt Instrument [Line Items] | ||
Spread on variable rate | 0.40% | |
Revolving Credit Facility | Line of Credit | 2022 Credit Facility | ||
Debt Instrument [Line Items] | ||
Maturity period | property | 2 | |
Extension term | 6 months | |
Line of credit facility covenant minimum fixed charge coverage ratio | 1.5 | |
Line of credit facility covenant maximum leverage ratio | 0.60 | |
Line of credit facility covenant maximum unsecured indebtedness to unencumbered asset value ratio | 0.60 | |
Line of credit facility covenant maximum secured indebtedness to asset value ratio | 0.40 | |
Line of credit facility covenant minimum unencumbered cash flow to interest expense on unsecured debt ratio | 1.75 | |
Line of credit facility covenant maximum percent of payments of dividends and distributions | 0.95 |
DEBT OBLIGATIONS - Aggregate Sc
DEBT OBLIGATIONS - Aggregate Scheduled Principal Payments of Debt Obligation, Excluding Amortization of Discounts and Premiums (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2022 (six months remaining) | $ 0 |
2023 | 350,000 |
2024 | 350,000 |
2025 | 0 |
2026 | 214,000 |
Thereafter | 1,128,610 |
Total principal payments | 2,042,610 |
Net unamortized premiums/(discounts) | 7,212 |
Net deferred financing costs | (7,063) |
Outstanding indebtedness | $ 2,042,759 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred financing costs, net | $ 7,063 | |
Unsecured notes payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred financing costs, net | 7,063 | $ 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 | 1,502,102 | 1,502,368 |
Deferred financing costs, net | 5,100 | 5,800 |
Carrying Amount | Variable rate debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate debt | 540,657 | 351,218 |
Deferred financing costs, net | 2,000 | 400 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes receivable, fair value | 44,058 | 45,230 |
Fair Value | Unsecured notes payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 1,461,960 | 1,588,780 |
Fair Value | Variable rate debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 542,610 | $ 344,754 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) | Jun. 30, 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 | $ 415,000 | |
Fair value | $ (2,461,000) |
LIMITED PARTNERS' NONCONTROLL_2
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 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 | $ 2,234 | |
Aggregate amount related to non-controlling interests classified within equity | 5,000 | $ 8,200 | |
Settlement value of non controlling interest in operating partnership | $ 5,100 | $ 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 | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator | ||||||
Net income | $ 4,651 | $ 6,101 | $ (175) | $ 6,964 | $ 10,752 | $ 6,789 |
Net (income) loss attributable to noncontrolling interests, Basic | (14) | 8 | (22) | (35) | ||
Net (income) loss attributable to noncontrolling interests, Diluted | (14) | 8 | (22) | (35) | ||
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (98) | (94) | (246) | (240) | ||
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (98) | (94) | (246) | (240) | ||
Net income (loss) attributable to Common Partnership Unitholders of Brandywine Operating Partnership, L.P. | 4,539 | (261) | 10,484 | 6,514 | ||
Net income (loss) attributable to common shareholders, diluted | $ 4,539 | $ (261) | $ 10,484 | $ 6,514 | ||
Denominator | ||||||
Weighted average units outstanding, basic (in shares) | 171,527,031 | 170,848,894 | 171,411,631 | 170,737,437 | ||
Contingent securities/Share based compensation (in shares) | 733,398 | 0 | 1,163,777 | 1,258,682 | ||
Weighted average units outstanding, diluted (in shares) | 172,260,429 | 170,848,894 | 172,575,408 | 171,996,119 | ||
Earnings per Common Share: | ||||||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 | ||
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
BENEFICIARIES' EQUITY OF THE _4
BENEFICIARIES' EQUITY OF THE PARENT COMPANY - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jul. 20, 2022 | May 18, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jan. 03, 2019 | |
Class of Stock [Line Items] | |||||||||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 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 | 823,983 |
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 | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator | ||||||
Net income (loss) | $ 4,651 | $ 6,101 | $ (175) | $ 6,964 | $ 10,752 | $ 6,789 |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (98) | (94) | (246) | (240) | ||
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | $ (98) | $ (94) | $ (246) | $ (240) | ||
Denominator | ||||||
Weighted average units outstanding, basic (in shares) | 171,527,031 | 170,848,894 | 171,411,631 | 170,737,437 | ||
Contingent securities/Share based compensation (in shares) | 733,398 | 0 | 1,163,777 | 1,258,682 | ||
Weighted average units outstanding, diluted (in shares) | 172,260,429 | 170,848,894 | 172,575,408 | 171,996,119 | ||
Earnings per Common Partnership Unit: | ||||||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 | ||
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 | ||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||||
Numerator | ||||||
Net income (loss) | $ 4,651 | $ 6,101 | $ (175) | $ 6,964 | $ 10,752 | $ 6,789 |
Net loss attributable to noncontrolling interests | 2 | 1 | 4 | 2 | ||
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (98) | (94) | (246) | (240) | ||
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (98) | (94) | (246) | (240) | ||
Net income (loss) attributable to common unitholders, Basic | 4,555 | (268) | 10,510 | 6,551 | ||
Net income (loss) attributable to common unitholders, Diluted | $ 4,555 | $ (268) | $ 10,510 | $ 6,551 | ||
Denominator | ||||||
Weighted average units outstanding, basic (in shares) | 172,043,498 | 171,792,415 | 171,985,863 | 171,699,909 | ||
Contingent securities/Share based compensation (in shares) | 733,398 | 0 | 1,163,777 | 1,258,682 | ||
Weighted average units outstanding, diluted (in shares) | 172,776,896 | 171,792,415 | 173,149,640 | 172,958,591 | ||
Earnings per Common Partnership Unit: | ||||||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 | ||
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.04 |
PARTNERS' EQUITY OF THE PAREN_4
PARTNERS' EQUITY OF THE PARENT COMPANY - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | ||||||
Jul. 20, 2022 $ / shares | May 18, 2022 USD ($) $ / shares | Feb. 23, 2022 | Jun. 30, 2022 $ / shares | Mar. 31, 2022 $ / shares | Jun. 30, 2021 $ / shares | Mar. 31, 2021 $ / shares | |
Earnings Per Common Partnership Unit [Line Items] | |||||||
Distributions declared (in dollars per share) | $ 0.19 | $ 0.19 | $ 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 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Operating properties | $ 3,545,102 | $ 3,472,602 |
Right of use asset - operating leases, net | 19,988 | 20,313 |
Construction-in-progress | 366,823 | 277,237 |
Land held for development | 93,887 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Philadelphia CBD | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 1,506,350 | 1,460,510 |
Pennsylvania Suburbs | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 870,510 | 866,223 |
Austin, Texas | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 794,734 | 778,145 |
Metropolitan Washington, D.C. | ||
Segment Reporting Information [Line Items] | ||
Operating properties | 287,215 | 280,921 |
Other | ||
Segment Reporting Information [Line Items] | ||
Operating properties | $ 86,293 | $ 86,803 |
SEGMENT INFORMATION - Net Opera
SEGMENT INFORMATION - Net Operating Income of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 124,042 | $ 120,102 | $ 251,547 | $ 240,871 |
Operating expenses | (49,649) | (47,427) | (97,567) | (94,101) |
Net operating income | 74,393 | 72,675 | 153,980 | 146,770 |
Operating Segments | Philadelphia CBD | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 55,426 | 51,445 | 108,897 | 102,672 |
Operating expenses | (20,538) | (18,259) | (40,281) | (35,670) |
Net operating income | 34,888 | 33,186 | 68,616 | 67,002 |
Operating Segments | Pennsylvania Suburbs | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 31,333 | 30,294 | 63,140 | 62,034 |
Operating expenses | (10,258) | (9,777) | (20,416) | (20,471) |
Net operating income | 21,075 | 20,517 | 42,724 | 41,563 |
Operating Segments | Austin, Texas | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 23,921 | 25,513 | 48,836 | 51,688 |
Operating expenses | (10,438) | (9,962) | (20,731) | (19,682) |
Net operating income | 13,483 | 15,551 | 28,105 | 32,006 |
Operating Segments | Metropolitan Washington, D.C. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 5,486 | 4,812 | 10,681 | 9,487 |
Operating expenses | (3,116) | (3,902) | (6,544) | (8,101) |
Net operating income | 2,370 | 910 | 4,137 | 1,386 |
Operating Segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,919 | 3,662 | 7,523 | 6,875 |
Operating expenses | (2,342) | (2,528) | (4,352) | (4,810) |
Net operating income | 1,577 | 1,134 | 3,171 | 2,065 |
Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 3,957 | 4,376 | 12,470 | 8,115 |
Operating expenses | (2,957) | (2,999) | (5,243) | (5,367) |
Net operating income | $ 1,000 | $ 1,377 | $ 7,227 | $ 2,748 |
SEGMENT INFORMATION - Unconsoli
SEGMENT INFORMATION - Unconsolidated Real Estate Ventures of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | $ 429,246 | $ 429,246 | $ 411,110 | ||
Equity in income (loss) of real estate venture | (4,981) | $ (7,240) | (9,544) | $ (14,164) | |
Philadelphia CBD | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 341,748 | 341,748 | 317,959 | ||
Equity in income (loss) of real estate venture | (2,574) | (4,661) | |||
Metropolitan Washington, D.C. | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 85,614 | 85,614 | 85,867 | ||
Equity in income (loss) of real estate venture | (381) | (778) | |||
Mid-Atlantic Office JV | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | 31,478 | 31,478 | 31,680 | ||
Equity in income (loss) of real estate venture | (101) | 117 | |||
MAP Venture | |||||
Segment Reporting Information [Line Items] | |||||
Investment in real estate ventures | (29,594) | $ (29,594) | $ (24,396) | ||
Equity in income (loss) of real estate venture | $ (1,925) | $ (1,918) |
SEGMENT INFORMATION - Reconcili
SEGMENT INFORMATION - Reconciliation of Consolidated Net Income to Consolidated NOI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting [Abstract] | ||||||
Net income (loss) | $ 4,651 | $ 6,101 | $ (175) | $ 6,964 | $ 10,752 | $ 6,789 |
Plus: | ||||||
Interest expense | 16,341 | 15,490 | 32,083 | 31,783 | ||
Interest expense - amortization of deferred financing costs | 805 | 709 | 1,514 | 1,418 | ||
Depreciation and amortization | 43,959 | 42,785 | 87,741 | 83,128 | ||
General and administrative expenses | 8,328 | 8,356 | 18,328 | 14,940 | ||
Equity in loss of unconsolidated real estate ventures | 4,981 | 7,240 | 9,544 | 14,164 | ||
Less: | ||||||
Interest and investment income | 449 | 1,677 | 889 | 3,351 | ||
Income tax provision | (48) | (15) | (75) | (34) | ||
Net gain on disposition of real estate | 144 | 68 | 144 | 142 | ||
Net gain on sale of undepreciated real estate | 4,127 | 0 | 5,024 | 1,993 | ||
Consolidated net operating income | $ 74,393 | $ 72,675 | $ 153,980 | $ 146,770 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2021 property | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 29, 2022 loan | Jul. 28, 2022 loan | Jul. 23, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Limited payment guarantee, percent of principle balance (up to) | 25% | |||||
One and Two Commerce Square | Preferred Equity Investment | ||||||
Loss Contingencies [Line Items] | ||||||
Other commitments | $ 20 | |||||
Amount committed to date | 5.9 | |||||
Drexel Square | ||||||
Loss Contingencies [Line Items] | ||||||
Other commitments | 7.2 | |||||
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 | $ 1,224.5 | |||||
One Uptown Venture | Construction Loans | Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Number of loans closed | loan | 2 | 2 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Jul. 14, 2022 USD ($) ft² | Jun. 30, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) |
Subsequent Event [Line Items] | |||
Rentable area (in square feet) | ft² | 13,639,287 | ||
Investment in real estate ventures | $ 429,246 | $ 411,110 | |
Subsequent Event | 3151 Market Street | |||
Subsequent Event [Line Items] | |||
Rentable area (in square feet) | ft² | 417,000 | ||
Investment in real estate ventures | $ 307,000 | ||
Subsequent Event | 3151 Market Street | Joint Venture With Unaffiliated Third Party | |||
Subsequent Event [Line Items] | |||
Investment in real estate ventures | $ 55,000 | ||
Subsequent Event | 3151 Market Street | Joint Venture With Unaffiliated Third Party | Joint Venture With Unaffiliated Third Party | |||
Subsequent Event [Line Items] | |||
Equity method investment, ownership percentage | 45% |