Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 14, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,608,700,263 | ||
Entity Common Stock, Shares Outstanding | 171,727,703 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the 2023 Annual Meeting of Shareholders of Brandywine Realty Trust are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0000790816 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001060386 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Philadelphia, Pennsylvania |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real estate investments: | ||
Operating properties | $ 3,617,240 | $ 3,472,602 |
Accumulated depreciation | (1,063,060) | (957,450) |
Right of use asset - operating leases, net | 19,664 | 20,313 |
Operating real estate investments, net | 2,573,844 | 2,535,465 |
Construction-in-progress | 218,869 | 277,237 |
Land held for development | 76,499 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Total real estate investments, net | 2,904,788 | 2,955,068 |
Assets held for sale, net | 0 | 562 |
Cash and cash equivalents | 17,551 | 27,463 |
Accounts receivable | 11,003 | 11,875 |
Accrued rent receivable, net of allowance of $3,947 and $4,133 as of December 31, 2022 and December 31, 2021, respectively | 179,771 | 167,210 |
Investment in unconsolidated real estate ventures | 567,635 | 435,506 |
Deferred costs, net | 96,639 | 86,862 |
Intangible assets, net | 18,451 | 28,556 |
Other assets | 78,667 | 133,094 |
Total assets | 3,874,505 | 3,846,196 |
LIABILITIES AND BENEFICIARIES' EQUITY | ||
Unsecured credit facility | 88,500 | 23,000 |
Unsecured term loan, net | 248,168 | 249,608 |
Unsecured senior notes, net | 1,628,370 | 1,580,978 |
Accounts payable and accrued expenses | 132,440 | 150,151 |
Distributions payable | 32,792 | 32,765 |
Deferred income, gains and rent | 25,082 | 23,849 |
Intangible liabilities, net | 10,322 | 12,981 |
Lease liability - operating leases | 23,166 | 22,962 |
Other liabilities | 52,331 | 48,683 |
Total liabilities | 2,241,171 | 2,144,977 |
Commitments and contingencies (See Note 20) | ||
Brandywine Realty Trust's Equity: | ||
Common Shares of Brandywine Realty Trust's beneficial interest, $0.01 par value; shares authorized 400,000,000; 171,569,807 and 171,126,257 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 1,716 | 1,712 |
Additional paid-in-capital | 3,153,229 | 3,146,786 |
Deferred compensation payable in common shares | 19,601 | 18,491 |
Common shares in grantor trust, 1,179,643 and 1,169,703 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | (19,601) | (18,491) |
Cumulative earnings | 1,176,195 | 1,122,372 |
Accumulated other comprehensive income (loss) | 3,897 | (2,020) |
Cumulative distributions | (2,709,405) | (2,578,583) |
Total Brandywine Realty Trust's equity | 1,625,632 | 1,690,267 |
Noncontrolling interests | 7,702 | 10,952 |
Total beneficiaries' equity | 1,633,334 | 1,701,219 |
Total liabilities and partners' equity | $ 3,874,505 | $ 3,846,196 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accrued rent receivable, allowance | $ 3,947 | $ 4,133 |
Common stock, par or stated value per share (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common shares in grantor trust, issued and outstanding (in shares) | 1,179,643 | 1,169,703 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 506,100 | $ 486,819 | $ 534,852 |
Operating expenses | |||
Property operating expenses | 130,209 | 121,890 | 132,172 |
Real estate taxes | 53,645 | 53,621 | 63,032 |
Third party management expenses | 10,547 | 12,800 | 10,252 |
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
General and administrative expenses | 35,006 | 30,153 | 30,288 |
Provision for impairment | 4,663 | 0 | 0 |
Total operating expenses | 412,054 | 396,569 | 424,027 |
Gain on sale of real estate | |||
Net gain on disposition of real estate | 17,677 | 142 | 289,461 |
Net gain on sale of undepreciated real estate | 8,007 | 2,903 | 201 |
Total gain on sale of real estate | 25,684 | 3,045 | 289,662 |
Operating income | 119,730 | 93,295 | 400,487 |
Other income (expense): | |||
Interest and investment income | 1,905 | 8,295 | 1,939 |
Interest expense | (68,764) | (62,617) | (73,911) |
Interest expense - amortization of deferred financing costs | (3,091) | (2,836) | (2,904) |
Equity in loss of unconsolidated real estate ventures | (22,016) | (26,697) | (18,584) |
Net gain on real estate venture transactions | 26,718 | 2,973 | 75 |
Loss on early extinguishment of debt | (435) | 0 | 0 |
Net income before income taxes | 54,047 | 12,413 | 307,102 |
Income tax (provision) benefit | (55) | (47) | 224 |
Net income | 53,992 | 12,366 | 307,326 |
Net income attributable to noncontrolling interests | (168) | (77) | (1,799) |
Net income attributable to Brandywine Realty Trust | 53,824 | 12,289 | 305,527 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (456) | (421) | (410) |
Net income attributable to Common Shareholders, Basic | $ 53,368 | $ 11,868 | $ 305,117 |
Basic income per Common Share (in dollars per shares) | $ 0.31 | $ 0.07 | $ 1.77 |
Diluted income per Common Share (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Basic weighted average shares outstanding (in shares) | 171,491,369 | 170,878,185 | 171,926,079 |
Diluted weighted average shares outstanding (in shares) | 172,325,646 | 172,273,240 | 172,317,076 |
Rents | |||
Revenue | |||
Total revenue | $ 470,851 | $ 451,519 | $ 513,504 |
Third party management fees, labor reimbursement and leasing | |||
Revenue | |||
Total revenue | 24,132 | 26,444 | 18,580 |
Other | |||
Revenue | |||
Total revenue | $ 11,117 | $ 8,856 | $ 2,768 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 53,992 | $ 12,366 | $ 307,326 | |
Comprehensive income (loss): | ||||
Unrealized gain (loss) on derivative financial instruments | 5,371 | 4,817 | (5,972) | |
Amortization of interest rate contracts | [1] | 564 | 752 | 752 |
Total comprehensive income (loss) | 5,935 | 5,569 | (5,220) | |
Comprehensive income | 59,927 | 17,935 | 302,106 | |
Comprehensive income attributable to noncontrolling interest | (186) | (105) | (1,770) | |
Comprehensive income attributable to Brandywine Realty Trust | $ 59,741 | $ 17,830 | $ 300,336 | |
[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 | Deferred Compensation Payable in Common Shares | Additional Paid-in Capital | Common Shares in Grantor Trust | Cumulative Earnings | Accumulated Other Comprehensive Income (Loss) | Cumulative Distributions | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2019 | 176,480,095 | 1,105,542 | |||||||
Beneficiaries' Equity, beginning balance at Dec. 31, 2019 | $ 1,688,303 | $ 1,766 | $ 16,216 | $ 3,192,158 | $ (16,216) | $ 804,556 | $ (2,370) | $ (2,318,233) | $ 10,426 |
Parent Company | |||||||||
Net income | 307,326 | 305,527 | 1,799 | ||||||
Other comprehensive income (loss) | $ (5,220) | (5,191) | (29) | ||||||
Repurchase and retirement of Common Shares of Beneficial Interest (in shares) | (6,248,483) | (6,248,483) | |||||||
Repurchase and retirement of Common Shares of Beneficial Interest | $ (59,999) | $ (62) | (59,937) | ||||||
Sale of partnership interest to consolidated real estate venture | (1,017) | (1,017) | |||||||
Distributions from consolidated real estate venture | (22) | (22) | |||||||
Share-based compensation activity (in shares) | 309,096 | 50,967 | |||||||
Share-based compensation activity | 6,236 | $ 3 | 6,233 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | 32,256 | 3,985 | |||||||
Share Issuance from/(to) Deferred Compensation Plan | (206) | $ 1,300 | (206) | (1,300) | |||||
Reallocation of Noncontrolling Interest | 0 | (96) | 96 | ||||||
Distributions declared | (130,753) | (130,005) | (748) | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 170,572,964 | 1,160,494 | |||||||
Beneficiaries' Equity, ending 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 |
Parent Company | |||||||||
Net income | 12,366 | 12,289 | 77 | ||||||
Other comprehensive income (loss) | 5,569 | 5,541 | 28 | ||||||
Issuance of Common Shares of Beneficial Interest (in shares) | 226,695 | ||||||||
Issuance of Common Shares of Beneficial Interest | $ 3,052 | $ 3 | 3,049 | ||||||
Repurchase and retirement of Common Shares of Beneficial Interest (in shares) | 0 | ||||||||
Issuance of partnership interest in consolidated real estate venture | $ 2,765 | 2,765 | |||||||
Redemption of LP Units | (2,334) | (2,334) | |||||||
Share-based compensation activity (in shares) | 344,656 | 70,645 | |||||||
Share-based compensation activity | 6,354 | $ 2 | 6,352 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (18,058) | (61,436) | |||||||
Share Issuance from/(to) Deferred Compensation Plan | (198) | $ 975 | (198) | (975) | |||||
Reallocation of Noncontrolling Interest | 0 | (569) | 569 | ||||||
Distributions declared | (131,003) | (130,345) | (658) | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 171,126,257 | 1,169,703 | |||||||
Beneficiaries' Equity, ending 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 |
Parent Company | |||||||||
Net income | 53,992 | 53,824 | 168 | ||||||
Other comprehensive income (loss) | $ 5,935 | 5,917 | 18 | ||||||
Repurchase and retirement of Common Shares of Beneficial Interest (in shares) | 0 | ||||||||
Redemption of LP Units | $ (4,006) | (4,006) | |||||||
Share-based compensation activity (in shares) | 469,529 | 85,384 | |||||||
Share-based compensation activity | 7,718 | $ 4 | 7,714 | ||||||
Share Issuance from/(to) Deferred Compensation Plan (in shares) | (25,979) | (75,444) | |||||||
Share Issuance from/(to) Deferred Compensation Plan | (312) | $ 1,110 | (312) | (1,110) | |||||
Reallocation of Noncontrolling Interest | (1) | (959) | (1) | 959 | |||||
Distributions declared | (131,211) | (130,822) | (389) | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 171,569,807 | 1,179,643 | |||||||
Beneficiaries' Equity, ending balance at Dec. 31, 2022 | $ 1,633,334 | $ 1,716 | $ 19,601 | $ 3,153,229 | $ (19,601) | $ 1,176,195 | $ 3,897 | $ (2,709,405) | $ 7,702 |
CONSOLIDATED STATEMENTS OF BE_2
CONSOLIDATED STATEMENTS OF BENEFICIARIES’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Distributions declared per Common Share (in dollars per share) | $ 0.76 | $ 0.76 | $ 0.76 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 53,992 | $ 12,366 | $ 307,326 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
Amortization of deferred financing costs | 3,091 | 2,836 | 2,904 |
Amortization of debt discount/(premium), net | (5,254) | (1,951) | (568) |
Amortization of stock compensation costs | 8,939 | 7,130 | 6,627 |
Straight-line rent income | (13,631) | (13,485) | (14,743) |
Amortization of acquired above (below) market leases, net | (2,581) | (5,377) | (4,867) |
Straight-line ground rent expense | 814 | 918 | 1,455 |
Provision for doubtful accounts | 0 | 0 | 1,049 |
Net gain on real estate venture transactions | (26,718) | (2,973) | (75) |
Total gain on sale of real estate | (25,684) | (3,045) | (289,662) |
Loss on early extinguishment of debt | 435 | 0 | 0 |
Provision for impairment | 4,663 | 0 | 0 |
Loss from unconsolidated real estate ventures, including income distributions | 23,522 | 26,697 | 18,584 |
Income tax provision (benefit) | 55 | 47 | (224) |
Changes in assets and liabilities: | |||
Accounts receivable | 1,328 | 2,506 | (2,031) |
Other assets | (1,120) | (19,325) | (5,034) |
Accounts payable and accrued expenses | 5,405 | 2,974 | 14,374 |
Deferred income, gains and rent | 1,567 | 2,986 | (12,149) |
Other liabilities | 2,500 | 465 | 14,557 |
Net cash provided by operating activities | 209,307 | 190,874 | 225,806 |
Cash flows from investing activities: | |||
Acquisition of properties | (3,446) | 0 | (41,950) |
Proceeds from the sale of properties | 64,210 | 10,303 | 278,114 |
Proceeds from insurance | 0 | 1,250 | 0 |
Proceeds from note receivable | 44,300 | 50,000 | 0 |
Issuance of note receivable | 0 | 0 | (50,000) |
Capital expenditures for tenant improvements | (86,774) | (56,830) | (73,166) |
Capital expenditures for redevelopments | (87,223) | (48,022) | (21,664) |
Capital expenditures for developments | (89,017) | (30,269) | (65,420) |
Advances for the purchase of tenant assets, net of repayments | (447) | 270 | 1,488 |
Investment in unconsolidated real estate ventures | (47,428) | (31,643) | (719) |
Deposits for real estate | (4,900) | (2,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 46,898 | 27,028 | 9,001 |
Leasing costs paid | (26,762) | (19,852) | (17,394) |
Net cash provided by (used in) investing activities | (190,589) | (100,315) | 18,290 |
Cash flows from financing activities: | |||
Repayments of mortgage notes payable | 0 | 0 | (94,993) |
Proceeds from credit facility borrowings | 478,000 | 154,000 | 318,000 |
Repayments of credit facility borrowings | (412,500) | (131,000) | (318,000) |
Proceeds from unsecured notes | 350,000 | 0 | 0 |
Repayments of unsecured notes | (296,134) | 0 | 0 |
Debt financing costs paid | (9,875) | 0 | 0 |
Exercise of stock options, net | 0 | (63) | 47 |
Shares used for employee taxes upon vesting of share awards | (2,941) | (1,762) | (1,346) |
Partner contributions to consolidated real estate venture | 0 | 2,765 | 0 |
Repurchase and retirement of common shares | 0 | 0 | (60,000) |
Redemption of limited partnership units | (4,006) | (2,334) | 0 |
Distributions paid to shareholders | (130,724) | (130,255) | (131,150) |
Distributions to noncontrolling interest | (451) | (687) | (747) |
Net cash used in financing activities | (28,631) | (109,336) | (288,189) |
Decrease in cash and cash equivalents and restricted cash | (9,913) | (18,777) | (44,093) |
Cash and cash equivalents and restricted cash at beginning of year | 28,300 | 47,077 | 91,170 |
Cash and cash equivalents and restricted cash at end of period | 18,387 | 28,300 | 47,077 |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents, beginning of period | 27,463 | 46,344 | 90,499 |
Restricted cash, beginning of period | 837 | 733 | 671 |
Cash and cash equivalents, end of period | 17,551 | 27,463 | 46,344 |
Restricted cash, end of period | 836 | 837 | 733 |
Cash and cash equivalents and restricted cash | 18,387 | 28,300 | 47,077 |
Supplemental disclosure: | |||
Cash paid for interest, net of capitalized interest during the years ended December 31, 2022, 2021 and 2020 of $10,517, $8,689 and $4,650 respectively | 85,761 | 72,391 | 79,498 |
Cash paid for income taxes | 902 | 785 | 688 |
Supplemental disclosure of non-cash activity: | |||
Dividends and distributions declared but not paid | 32,792 | 32,765 | 32,706 |
Extinguishment of debt costs accrued in financing activities | 393 | 0 | 0 |
Change in investment in real estate ventures as a result of deconsolidation | 107,057 | 32,761 | 0 |
Change in operating real estate from deconsolidation of operating properties | (92,009) | (30,073) | 427,710 |
Change in investment in real estate ventures from deconsolidation of operating properties | 0 | 0 | (296,262) |
Change in mortgage notes payable from deconsolidation of operating properties | 0 | 0 | (220,271) |
Change in other assets as a result of deconsolidation of operating properties | (15,048) | (2,688) | 1,471 |
Change in capital expenditures financed through accounts payable at period end | (6,135) | 22,744 | (9,949) |
Change in capital expenditures financed through retention payable at period end | $ (7,165) | $ (613) | $ 284 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental disclosure: | |||
Capitalized interest | $ 10,517 | $ 8,689 | $ 4,650 |
CONSOLIDATED BALANCE SHEETS - B
CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real estate investments: | ||
Operating properties | $ 3,617,240 | $ 3,472,602 |
Accumulated depreciation | (1,063,060) | (957,450) |
Right of use asset - operating leases, net | 19,664 | 20,313 |
Operating real estate investments, net | 2,573,844 | 2,535,465 |
Construction-in-progress | 218,869 | 277,237 |
Land held for development | 76,499 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Total real estate investments, net | 2,904,788 | 2,955,068 |
Assets held for sale, net | 0 | 562 |
Cash and cash equivalents | 17,551 | 27,463 |
Accounts receivable | 11,003 | 11,875 |
Accrued rent receivable, net of allowance of $3,947 and $4,133 as of December 31, 2022 and December 31, 2021, respectively | 179,771 | 167,210 |
Investment in unconsolidated real estate ventures | 567,635 | 435,506 |
Deferred costs, net | 96,639 | 86,862 |
Intangible assets, net | 18,451 | 28,556 |
Other assets | 78,667 | 133,094 |
Total assets | 3,874,505 | 3,846,196 |
LIABILITIES AND BENEFICIARIES' EQUITY | ||
Unsecured credit facility | 88,500 | 23,000 |
Unsecured term loan, net | 248,168 | 249,608 |
Unsecured senior notes, net | 1,628,370 | 1,580,978 |
Accounts payable and accrued expenses | 132,440 | 150,151 |
Distributions payable | 32,792 | 32,765 |
Deferred income, gains and rent | 25,082 | 23,849 |
Intangible liabilities, net | 10,322 | 12,981 |
Lease liability - operating leases | 23,166 | 22,962 |
Other liabilities | 52,331 | 48,683 |
Total liabilities | 2,241,171 | 2,144,977 |
Commitments and contingencies (See Note 20) | ||
Brandywine Operating Partnership, L.P.'s equity: | ||
Accumulated other comprehensive income (loss) | 3,897 | (2,020) |
Total liabilities and partners' equity | 3,874,505 | 3,846,196 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Real estate investments: | ||
Operating properties | 3,617,240 | 3,472,602 |
Accumulated depreciation | (1,063,060) | (957,450) |
Right of use asset - operating leases, net | 19,664 | 20,313 |
Operating real estate investments, net | 2,573,844 | 2,535,465 |
Construction-in-progress | 218,869 | 277,237 |
Land held for development | 76,499 | 114,604 |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 |
Total real estate investments, net | 2,904,788 | 2,955,068 |
Assets held for sale, net | 0 | 562 |
Cash and cash equivalents | 17,551 | 27,463 |
Accounts receivable | 11,003 | 11,875 |
Accrued rent receivable, net of allowance of $3,947 and $4,133 as of December 31, 2022 and December 31, 2021, respectively | 179,771 | 167,210 |
Investment in unconsolidated real estate ventures | 567,635 | 435,506 |
Deferred costs, net | 96,639 | 86,862 |
Intangible assets, net | 18,451 | 28,556 |
Other assets | 78,667 | 133,094 |
Total assets | 3,874,505 | 3,846,196 |
LIABILITIES AND BENEFICIARIES' EQUITY | ||
Unsecured credit facility | 88,500 | 23,000 |
Unsecured term loan, net | 248,168 | 249,608 |
Unsecured senior notes, net | 1,628,370 | 1,580,978 |
Accounts payable and accrued expenses | 132,440 | 150,151 |
Distributions payable | 32,792 | 32,765 |
Deferred income, gains and rent | 25,082 | 23,849 |
Intangible liabilities, net | 10,322 | 12,981 |
Lease liability - operating leases | 23,166 | 22,962 |
Other liabilities | 52,331 | 48,683 |
Total liabilities | 2,241,171 | 2,144,977 |
Commitments and contingencies (See Note 20) | ||
Redeemable limited partnership units at redemption value; 516,467 and 823,983 issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 3,195 | 11,140 |
Brandywine Operating Partnership, L.P.'s equity: | ||
General Partnership Capital; 171,569,807 and 171,126,257 units issued and outstanding as of December 31, 2022 and December 31, 2021, respectively | 1,623,738 | 1,689,611 |
Accumulated other comprehensive income (loss) | 3,569 | (2,366) |
Total Brandywine Operating Partnership, L.P.'s equity | 1,627,307 | 1,687,245 |
Noncontrolling interest - consolidated real estate ventures | 2,832 | 2,834 |
Total partners' equity | 1,630,139 | 1,690,079 |
Total liabilities and partners' equity | $ 3,874,505 | $ 3,846,196 |
CONSOLIDATED BALANCE SHEETS -_2
CONSOLIDATED BALANCE SHEETS - BRANDYWINE OPERATING PARTNERSHIP, L.P. (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued rent receivable, allowance | $ 3,947 | $ 4,133 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Accrued rent receivable, allowance | $ 3,947 | $ 4,133 |
Common stock, shares, issued (in shares) | 171,569,807 | 171,126,257 |
Common stock, shares, outstanding (in shares) | 171,569,807 | 171,126,257 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Class A Units | ||
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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | |||
Total revenue | $ 506,100 | $ 486,819 | $ 534,852 |
Operating expenses | |||
Property operating expenses | 130,209 | 121,890 | 132,172 |
Real estate taxes | 53,645 | 53,621 | 63,032 |
Third party management expenses | 10,547 | 12,800 | 10,252 |
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
General and administrative expenses | 35,006 | 30,153 | 30,288 |
Provision for impairment | 4,663 | 0 | 0 |
Total operating expenses | 412,054 | 396,569 | 424,027 |
Gain on sale of real estate | |||
Net gain on disposition of real estate | 17,677 | 142 | 289,461 |
Net gain on sale of undepreciated real estate | 8,007 | 2,903 | 201 |
Total gain on sale of real estate | 25,684 | 3,045 | 289,662 |
Operating income | 119,730 | 93,295 | 400,487 |
Other income (expense): | |||
Interest and investment income | 1,905 | 8,295 | 1,939 |
Interest expense | (68,764) | (62,617) | (73,911) |
Interest expense - amortization of deferred financing costs | (3,091) | (2,836) | (2,904) |
Equity in loss of unconsolidated real estate ventures | (22,016) | (26,697) | (18,584) |
Net gain on real estate venture transactions | 26,718 | 2,973 | 75 |
Loss on early extinguishment of debt | (435) | 0 | 0 |
Net income before income taxes | 54,047 | 12,413 | 307,102 |
Income tax (provision) benefit | (55) | (47) | 224 |
Net income | 53,992 | 12,366 | 307,326 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (456) | (421) | (410) |
Net income attributable to Common Shareholders, Basic | $ 53,368 | $ 11,868 | $ 305,117 |
Basic income per Common Partnership Unit (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Diluted income per Common Partnership Unit (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Basic weighted average common partnership units outstanding (in shares) | 171,491,369 | 170,878,185 | 171,926,079 |
Diluted weighted average common partnership units outstanding (in shares) | 172,325,646 | 172,273,240 | 172,317,076 |
Rents | |||
Revenue | |||
Total revenue | $ 470,851 | $ 451,519 | $ 513,504 |
Third party management fees, labor reimbursement and leasing | |||
Revenue | |||
Total revenue | 24,132 | 26,444 | 18,580 |
Other | |||
Revenue | |||
Total revenue | 11,117 | 8,856 | 2,768 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||
Revenue | |||
Total revenue | 506,100 | 486,819 | 534,852 |
Operating expenses | |||
Property operating expenses | 130,209 | 121,890 | 132,172 |
Real estate taxes | 53,645 | 53,621 | 63,032 |
Third party management expenses | 10,547 | 12,800 | 10,252 |
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
General and administrative expenses | 35,006 | 30,153 | 30,288 |
Provision for impairment | 4,663 | 0 | 0 |
Total operating expenses | 412,054 | 396,569 | 424,027 |
Gain on sale of real estate | |||
Net gain on disposition of real estate | 17,677 | 142 | 289,461 |
Net gain on sale of undepreciated real estate | 8,007 | 2,903 | 201 |
Total gain on sale of real estate | 25,684 | 3,045 | 289,662 |
Operating income | 119,730 | 93,295 | 400,487 |
Other income (expense): | |||
Interest and investment income | 1,905 | 8,295 | 1,939 |
Interest expense | (68,764) | (62,617) | (73,911) |
Interest expense - amortization of deferred financing costs | (3,091) | (2,836) | (2,904) |
Equity in loss of unconsolidated real estate ventures | (22,016) | (26,697) | (18,584) |
Net gain on real estate venture transactions | 26,718 | 2,973 | 75 |
Loss on early extinguishment of debt | (435) | 0 | 0 |
Net income before income taxes | 54,047 | 12,413 | 307,102 |
Income tax (provision) benefit | (55) | (47) | 224 |
Net income | 53,992 | 12,366 | 307,326 |
Net (income) loss attributable to noncontrolling interests - consolidated real estate ventures | 2 | 3 | (20) |
Net income attributable to Brandywine Operating Partnership | 53,994 | 12,369 | 307,306 |
Nonforfeitable dividends allocated to unvested restricted shareholders | (456) | (421) | (410) |
Net income attributable to Common Shareholders, Basic | $ 53,538 | $ 11,948 | $ 306,896 |
Basic income per Common Partnership Unit (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Diluted income per Common Partnership Unit (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Basic weighted average common partnership units outstanding (in shares) | 172,036,481 | 171,770,843 | 172,907,713 |
Diluted weighted average common partnership units outstanding (in shares) | 172,870,758 | 173,165,898 | 173,298,710 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Rents | |||
Revenue | |||
Total revenue | $ 470,851 | $ 451,519 | $ 513,504 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Third party management fees, labor reimbursement and leasing | |||
Revenue | |||
Total revenue | 24,132 | 26,444 | 18,580 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | Other | |||
Revenue | |||
Total revenue | $ 11,117 | $ 8,856 | $ 2,768 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - BRANDYWINE OPERATING PARTNERSHIP, L.P. - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Net income | $ 53,992 | $ 12,366 | $ 307,326 | |
Comprehensive income (loss): | ||||
Unrealized gain (loss) on derivative financial instruments | 5,371 | 4,817 | (5,972) | |
Amortization of interest rate contracts | [1] | 564 | 752 | 752 |
Total comprehensive income (loss) | 5,935 | 5,569 | (5,220) | |
Comprehensive income | 59,927 | 17,935 | 302,106 | |
Comprehensive (income) loss attributable to noncontrolling interest - consolidated real estate ventures | (186) | (105) | (1,770) | |
Comprehensive income attributable to Brandywine Realty Trust | 59,741 | 17,830 | 300,336 | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Net income | 53,992 | 12,366 | 307,326 | |
Comprehensive income (loss): | ||||
Unrealized gain (loss) on derivative financial instruments | 5,371 | 4,817 | (5,972) | |
Amortization of interest rate contracts | [1] | 564 | 752 | 752 |
Total comprehensive income (loss) | 5,935 | 5,569 | (5,220) | |
Comprehensive income | 59,927 | 17,935 | 302,106 | |
Comprehensive (income) loss attributable to noncontrolling interest - consolidated real estate ventures | 2 | 3 | (20) | |
Comprehensive income attributable to Brandywine Realty Trust | $ 59,929 | $ 17,938 | $ 302,086 | |
[1]Amounts reclassified from comprehensive income to interest expense within the Consolidated Statements of Operations. |
CONSOLIDATED STATEMENTS OF PART
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY - USD ($) $ in Thousands | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest - Consolidated Real Estate Ventures | 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, 2019 | 176,480,095 | ||||||
Partners' Equity, beginning balance at Dec. 31, 2019 | $ 1,672,915 | $ (2,715) | $ 1,091 | $ 1,674,539 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 307,326 | $ 1,799 | 307,326 | 20 | $ 307,306 | ||
Other comprehensive income (loss) | (5,220) | $ (5,191) | (29) | (5,220) | (5,220) | ||
Deferred compensation obligation (in shares) | 32,256 | ||||||
Deferred compensation obligation | (206) | (206) | $ (206) | ||||
Repurchase and retirement of LP units (in shares) | (6,248,483) | ||||||
Repurchase and retirement of LP units | (59,999) | $ (59,999) | |||||
Distributions from consolidated real estate venture | (22) | (22) | (22) | (22) | |||
Share-based compensation activity (in shares) | 309,096 | ||||||
Share-based compensation activity | 6,236 | 6,236 | $ 6,236 | ||||
Sale of partnership interest to consolidated real estate venture | (1,017) | (1,017) | (1,017) | (1,017) | |||
Adjustment of redeemable partnership units to liquidation value at period end | 3,074 | 3,074 | |||||
Distributions declared to general partnership unitholders | (130,005) | $ (130,005) | |||||
Ending balance (in shares) at Dec. 31, 2020 | 170,572,964 | ||||||
Partners' Equity, ending balance at Dec. 31, 2020 | 1,793,082 | (7,935) | 72 | $ 1,800,945 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 12,366 | 77 | 12,366 | (3) | $ 12,369 | ||
Other comprehensive income (loss) | 5,569 | 5,541 | 28 | 5,569 | 5,569 | ||
Deferred compensation obligation (in shares) | (18,058) | ||||||
Deferred compensation obligation | (198) | (198) | $ (198) | ||||
Issuance of LP Units (in shares) | 226,695 | ||||||
Issuance of LP Units | 3,052 | $ 3,052 | |||||
Repurchase and retirement of LP units | (2,334) | $ (2,334) | |||||
Issuance of partnership interest in consolidated real estate venture | 2,765 | 2,765 | 2,765 | 2,765 | |||
Share-based compensation activity (in shares) | 344,656 | ||||||
Share-based compensation activity | 6,354 | 6,354 | $ 6,354 | ||||
Adjustment of redeemable partnership units to liquidation value at period end | (232) | (232) | |||||
Distributions declared to general partnership unitholders | (130,345) | $ (130,345) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 171,126,257 | ||||||
Partners' Equity, ending balance at Dec. 31, 2021 | 1,690,079 | (2,366) | 2,834 | $ 1,689,611 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 53,992 | 168 | 53,992 | (2) | $ 53,994 | ||
Other comprehensive income (loss) | 5,935 | $ 5,917 | $ 18 | 5,935 | 5,935 | ||
Deferred compensation obligation (in shares) | (25,979) | ||||||
Deferred compensation obligation | (312) | (312) | $ (312) | ||||
Repurchase and retirement of LP units | (4,006) | $ (4,006) | |||||
Share-based compensation activity (in shares) | 469,529 | ||||||
Share-based compensation activity | $ 7,718 | 7,718 | $ 7,718 | ||||
Adjustment of redeemable partnership units to liquidation value at period end | 7,555 | 7,555 | |||||
Distributions declared to general partnership unitholders | (130,822) | $ (130,822) | |||||
Ending balance (in shares) at Dec. 31, 2022 | 171,569,807 | ||||||
Partners' Equity, ending balance at Dec. 31, 2022 | $ 1,630,139 | $ 3,569 | $ 2,832 | $ 1,623,738 |
CONSOLIDATED STATEMENTS OF PA_2
CONSOLIDATED STATEMENTS OF PARTNERS’ EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||
Distributions to general partnership unitholders (in dollars per share) | $ 0.76 | $ 0.76 | $ 0.76 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 53,992 | $ 12,366 | $ 307,326 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
Amortization of deferred financing costs | 3,091 | 2,836 | 2,904 |
Amortization of debt discount/(premium), net | (5,254) | (1,951) | (568) |
Amortization of stock compensation costs | 8,939 | 7,130 | 6,627 |
Straight-line rent income | (13,631) | (13,485) | (14,743) |
Amortization of acquired above (below) market leases, net | (2,581) | (5,377) | (4,867) |
Straight-line ground rent expense | 814 | 918 | 1,455 |
Provision for doubtful accounts | 0 | 0 | 1,049 |
Net gain on real estate venture transactions | (26,718) | (2,973) | (75) |
Total gain on sale of real estate | (25,684) | (3,045) | (289,662) |
Loss on early extinguishment of debt | 435 | 0 | 0 |
Provision for impairment | 4,663 | 0 | 0 |
Loss from unconsolidated real estate ventures, including income distributions | 23,522 | 26,697 | 18,584 |
Income tax provision (benefit) | 55 | 47 | (224) |
Changes in assets and liabilities: | |||
Accounts receivable | 1,328 | 2,506 | (2,031) |
Other assets | (1,120) | (19,325) | (5,034) |
Accounts payable and accrued expenses | 5,405 | 2,974 | 14,374 |
Deferred income, gains and rent | 1,567 | 2,986 | (12,149) |
Other liabilities | 2,500 | 465 | 14,557 |
Net cash provided by operating activities | 209,307 | 190,874 | 225,806 |
Cash flows from investing activities: | |||
Acquisition of properties | (3,446) | 0 | (41,950) |
Proceeds from the sale of properties | 64,210 | 10,303 | 278,114 |
Proceeds from insurance | 0 | 1,250 | 0 |
Proceeds from note receivable | 44,300 | 50,000 | 0 |
Issuance of note receivable | 0 | 0 | (50,000) |
Capital expenditures for tenant improvements | (86,774) | (56,830) | (73,166) |
Capital expenditures for redevelopments | (87,223) | (48,022) | (21,664) |
Capital expenditures for developments | (89,017) | (30,269) | (65,420) |
Advances for the purchase of tenant assets, net of repayments | (447) | 270 | 1,488 |
Investment in unconsolidated real estate ventures | (47,428) | (31,643) | (719) |
Deposits for real estate | (4,900) | (2,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 46,898 | 27,028 | 9,001 |
Leasing costs paid | (26,762) | (19,852) | (17,394) |
Net cash provided by (used in) investing activities | (190,589) | (100,315) | 18,290 |
Cash flows from financing activities: | |||
Repayments of mortgage notes payable | 0 | 0 | (94,993) |
Proceeds from credit facility borrowings | 478,000 | 154,000 | 318,000 |
Repayments of credit facility borrowings | (412,500) | (131,000) | (318,000) |
Proceeds from unsecured notes | 350,000 | 0 | 0 |
Repayments of unsecured notes | (296,134) | 0 | 0 |
Debt financing costs paid | (9,875) | 0 | 0 |
Exercise of stock options, net | 0 | (63) | 47 |
Shares used for employee taxes upon vesting of share awards | (2,941) | (1,762) | (1,346) |
Partner contributions to consolidated real estate venture | 0 | 2,765 | 0 |
Repurchase and retirement of common shares | 0 | 0 | (60,000) |
Redemption of limited partnership units | (4,006) | (2,334) | 0 |
Distributions paid to preferred and common partnership units | (130,724) | (130,255) | (131,150) |
Net cash used in financing activities | (28,631) | (109,336) | (288,189) |
Decrease in cash and cash equivalents and restricted cash | (9,913) | (18,777) | (44,093) |
Cash and cash equivalents and restricted cash at beginning of year | 28,300 | 47,077 | 91,170 |
Cash and cash equivalents and restricted cash at end of period | 18,387 | 28,300 | 47,077 |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents, beginning of period | 27,463 | 46,344 | 90,499 |
Restricted cash, beginning of period | 837 | 733 | 671 |
Cash and cash equivalents, end of period | 17,551 | 27,463 | 46,344 |
Restricted cash, end of period | 836 | 837 | 733 |
Cash and cash equivalents and restricted cash | 18,387 | 28,300 | 47,077 |
Supplemental disclosure: | |||
Cash paid for interest, net of capitalized interest during the years ended December 31, 2022, 2021 and 2020 of $10,517, $8,689 and $4,650 respectively | 85,761 | 72,391 | 79,498 |
Cash paid for income taxes | 902 | 785 | 688 |
Supplemental disclosure of non-cash activity: | |||
Dividends and distributions declared but not paid | 32,792 | 32,765 | 32,706 |
Extinguishment of debt costs accrued in financing activities | 393 | 0 | 0 |
Change in investment in real estate ventures as a result of deconsolidation | 107,057 | 32,761 | 0 |
Change in operating real estate from deconsolidation of operating properties | (92,009) | (30,073) | 427,710 |
Change in investment in real estate ventures from deconsolidation of operating properties | 0 | 0 | (296,262) |
Change in mortgage notes payable from deconsolidation of operating properties | 0 | 0 | (220,271) |
Change in other assets as a result of deconsolidation of operating properties | (15,048) | (2,688) | 1,471 |
Change in capital expenditures financed through accounts payable at period end | (6,135) | 22,744 | (9,949) |
Change in capital expenditures financed through retention payable at period end | (7,165) | (613) | 284 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||
Cash flows from operating activities: | |||
Net income | 53,992 | 12,366 | 307,326 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
Amortization of deferred financing costs | 3,091 | 2,836 | 2,904 |
Amortization of debt discount/(premium), net | (5,254) | (1,951) | (568) |
Amortization of stock compensation costs | 8,939 | 7,130 | 6,627 |
Straight-line rent income | (13,631) | (13,485) | (14,743) |
Amortization of acquired above (below) market leases, net | (2,581) | (5,377) | (4,867) |
Straight-line ground rent expense | 814 | 918 | 1,455 |
Provision for doubtful accounts | 0 | 0 | 1,049 |
Net gain on real estate venture transactions | (26,718) | (2,973) | (75) |
Loss on promoted interest in unconsolidated real estate venture | 0 | 0 | 0 |
Total gain on sale of real estate | (25,684) | (3,045) | (289,662) |
Loss on early extinguishment of debt | 435 | 0 | 0 |
Provision for impairment | 4,663 | 0 | 0 |
Loss from unconsolidated real estate ventures, including income distributions | 23,522 | 26,697 | 18,584 |
Income tax provision (benefit) | 55 | 47 | (224) |
Changes in assets and liabilities: | |||
Accounts receivable | 1,328 | 2,506 | (2,031) |
Other assets | (1,120) | (19,325) | (5,034) |
Accounts payable and accrued expenses | 5,405 | 2,974 | 14,374 |
Deferred income, gains and rent | 1,567 | 2,986 | (12,149) |
Other liabilities | 2,500 | 465 | 14,557 |
Net cash provided by operating activities | 209,307 | 190,874 | 225,806 |
Cash flows from investing activities: | |||
Acquisition of properties | (3,446) | 0 | (41,950) |
Proceeds from the sale of properties | 64,210 | 10,303 | 278,114 |
Proceeds from insurance | 0 | 1,250 | 0 |
Proceeds from note receivable | 44,300 | 50,000 | 0 |
Issuance of note receivable | 0 | 0 | (50,000) |
Capital expenditures for tenant improvements | (86,774) | (56,830) | (73,166) |
Capital expenditures for redevelopments | (87,223) | (48,022) | (21,664) |
Capital expenditures for developments | (89,017) | (30,269) | (65,420) |
Advances for the purchase of tenant assets, net of repayments | (447) | 270 | 1,488 |
Investment in unconsolidated real estate ventures | (47,428) | (31,643) | (719) |
Deposits for real estate | (4,900) | (2,550) | 0 |
Capital distributions from unconsolidated real estate ventures | 46,898 | 27,028 | 9,001 |
Leasing costs paid | (26,762) | (19,852) | (17,394) |
Net cash provided by (used in) investing activities | (190,589) | (100,315) | 18,290 |
Cash flows from financing activities: | |||
Repayments of mortgage notes payable | 0 | 0 | (94,993) |
Proceeds from credit facility borrowings | 478,000 | 154,000 | 318,000 |
Repayments of credit facility borrowings | (412,500) | (131,000) | (318,000) |
Proceeds from unsecured notes | 350,000 | 0 | 0 |
Repayments of unsecured notes | (296,134) | 0 | 0 |
Debt financing costs paid | (9,875) | 0 | 0 |
Exercise of stock options, net | 0 | (63) | 47 |
Shares used for employee taxes upon vesting of share awards | (2,941) | (1,762) | (1,346) |
Partner contributions to consolidated real estate venture | 0 | 2,765 | 0 |
Repurchase and retirement of common shares | 0 | 0 | (60,000) |
Redemption of limited partnership units | (4,006) | (2,334) | 0 |
Distributions paid to preferred and common partnership units | (131,175) | (130,942) | (131,897) |
Net cash used in financing activities | (28,631) | (109,336) | (288,189) |
Decrease in cash and cash equivalents and restricted cash | (9,913) | (18,777) | (44,093) |
Cash and cash equivalents and restricted cash at beginning of year | 28,300 | 47,077 | 91,170 |
Cash and cash equivalents and restricted cash at end of period | 18,387 | 28,300 | 47,077 |
Reconciliation of cash and cash equivalents and restricted cash: | |||
Cash and cash equivalents, beginning of period | 27,463 | 46,344 | 90,499 |
Restricted cash, beginning of period | 837 | 733 | 671 |
Cash and cash equivalents, end of period | 17,551 | 27,463 | 46,344 |
Restricted cash, end of period | 836 | 837 | 733 |
Cash and cash equivalents and restricted cash | 18,387 | 28,300 | 47,077 |
Supplemental disclosure: | |||
Cash paid for interest, net of capitalized interest during the years ended December 31, 2022, 2021 and 2020 of $10,517, $8,689 and $4,650 respectively | 85,761 | 72,391 | 79,498 |
Cash paid for income taxes | 902 | 785 | 688 |
Supplemental disclosure of non-cash activity: | |||
Dividends and distributions declared but not paid | 32,792 | 32,765 | 32,706 |
Extinguishment of debt costs accrued in financing activities | 393 | 0 | 0 |
Change in investment in real estate ventures as a result of deconsolidation | 107,057 | 32,761 | 0 |
Change in operating real estate from deconsolidation of operating properties | (92,009) | (30,073) | 427,710 |
Change in investment in real estate ventures from deconsolidation of operating properties | 0 | 0 | (296,262) |
Change in mortgage notes payable from deconsolidation of operating properties | 0 | 0 | (220,271) |
Change in other assets as a result of deconsolidation of operating properties | (15,048) | (2,688) | 1,471 |
Change in capital expenditures financed through accounts payable at period end | (6,135) | 22,744 | (9,949) |
Change in capital expenditures financed through retention payable at period end | $ (7,165) | $ (613) | $ 284 |
CONSOLIDATED STATEMENTS OF CA_4
CONSOLIDATED STATEMENTS OF CASH FLOWS - BRANDYWINE OPERATING PARTNERSHIP L.P. (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized interest | $ 10,517 | $ 8,689 | $ 4,650 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||
Capitalized interest | $ 10,517 | $ 8,689 | $ 4,650 |
ORGANIZATION OF THE PARENT COMP
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP | 1. ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP Brandywine Realty Trust (the Parent “Company”) is a self-administered and self-managed real estate investment trust (“REIT”) engaged in the acquisition, development, redevelopment, ownership, management, and operation of a portfolio of office and mixed-use properties. The Parent Company owns its assets and conducts its operations through Brandywine Operating Partnership, L.P. (the “Operating Partnership”) and subsidiaries of the Operating Partnership. The Parent Company is the sole general partner of the Operating Partnership and, as of December 31, 2022, owned a 99.7% interest in the Operating Partnership. The Parent Company’s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol “BDN.” The Parent Company, the Operating Partnership, and their consolidated subsidiaries are collectively referred to as the “Company.” As of December 31, 2022, the Company owned 77 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 December 31, 2022: Number of Properties Rentable Square Feet Office properties 67 11,848,707 Mixed-use properties 5 942,334 Core Properties 72 12,791,041 Development property 2 350,488 Redevelopment properties 3 436,659 The Properties 77 13,578,188 In addition to the Properties, as of December 31, 2022, the Company owned 159.9 acres of land held for development. The Company also held a leasehold interest in one land parcel totaling 0.8 acres, acquired through a prepaid 99-year ground lease, and held options to purchase approximately 55.1 additional acres of undeveloped land. As of December 31, 2022, the total potential development that this inventory of land could support under current zoning and entitlements, including the parcels under option, amounted to an estimated 11.9 million square feet. As of December 31, 2022, the Company also owned economic interests in twelve unconsolidated real estate ventures (see Note 4 “Investment in Unconsolidated Real Estate Ventures” for further information). The Properties and the properties owned by the unconsolidated real estate ventures are primarily located in or near Philadelphia, Pennsylvania; Austin, Texas; Metropolitan Washington, D.C.; Southern New Jersey; and Wilmington, Delaware. All references to building square footage, rentable square feet, acres, occupancy percentage, the number of buildings, and tax basis are unaudited. The Company conducts its third-party real estate management services business primarily through seven management companies (collectively, the “Management Companies”): Brandywine Realty Services Corporation (“BRSCO”), BDN Management Inc. (“BMI”), Brandywine Properties I Limited, Inc. (“BPI”), BDN Brokerage, LLC (“BBL”), Brandywine Properties Management, L.P. (“BPM”), Brandywine Brokerage Services, LLC (“BBS”), and BDN GC Services LLC (“BGCS”). Each of BRSCO, BMI and BPI is a taxable REIT subsidiary. BBS, BBL, BPM, and BGCS are tax disregarded entities wholly owned by the taxable REIT subsidiary entities. As of December 31, 2022, the Operating Partnership owned, directly and indirectly, 100% of each of BRSCO, BMI, BPI, BBL, BPM, BBS, and BGCS. As of December 31, 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Change in Depreciable Lives of Real Estate Investments In accordance with its policy, the Company reviews the estimated useful lives of its real estate investments on an ongoing basis. The estimated useful lives of seven operating properties in Austin, Texas were modified to reflect the estimated periods during which these assets will remain in service pursuant to the Company's Uptown ATX master development plans. The estimated useful lives of these properties were decreased from approximately 35 to approximately 12 coinciding with the remaining terms of in-place leases. The effect of this change in estimate was a $9.8 million and $14.6 million increase in depreciation expense during the years ended December 31, 2021 and 2022, respectively. Principles of Consolidation The Company consolidates variable interest entities (“VIEs”) in which it is considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct those matters that most significantly impact the activities of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. For entities that the Company has the obligations to fund losses, its maximum exposure to loss is not limited to the carrying amount of its investments. The Company continuously assesses its determination of the primary beneficiary for each entity and assesses reconsideration events that may cause a change in the original determinations. As of December 31, 2022 and 2021, the Company included in its consolidated balance sheets consolidated VIEs having total assets of $47.3 million and $46.5 million, respectively, and total liabilities of $21.0 million, respectively. When an entity is not deemed to be a VIE, the Company consolidates entities for which it has significant decision making control over the entity’s operations. The Company’s judgment with respect to its level of influence or control of an entity involves consideration of various factors including the form of the Company’s ownership interest, its representation in the entity’s governance, the size of its investment (including loans), estimates of future cash flows, its ability to participate in policy making decisions and the rights of the other investors to participate in the decision making process and to replace the Company as manager and/or liquidate the venture, if applicable. The Company’s assessment of its influence or control over an entity affects the presentation of these investments in the Company’s consolidated financial statements. In addition to evaluating control rights, the Company consolidates entities in which the outside partner has no substantive kick-out rights to remove the Company as managing member. The portion of the consolidated entities that are not owned by the Company is presented as noncontrolling interest as of and during the periods consolidated. All intercompany transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Operating Properties Operating properties are carried at historical cost less accumulated depreciation and impairment losses. The value of operating properties reflects their purchase price or development cost. Acquisition costs related to business combinations are expensed as incurred, whereas the costs related to asset acquisitions are capitalized as incurred. Costs incurred for the renovation and betterment of an operating property are capitalized to the Company’s investment in that property. Ordinary repairs and maintenance are expensed as incurred. Purchase Price Allocation For acquisitions of real estate or in-substance real estate that are accounted for as business combinations, we recognize the assets acquired (including the intangible value of acquired above- or below-market leases, acquired in-place leases and tenant relationship values), liabilities assumed, noncontrolling interests, and previously existing ownership interests at fair value as of the acquisition date. Any excess (deficit) of the consideration transferred relative to the fair value of the net assets acquired is accounted for as goodwill (bargain purchase gain). Acquisition costs related to business combinations are expensed as incurred. Acquisitions of real estate and in-substance real estate that do not meet the definition of a business are accounted for as asset acquisitions. The Company generally expects that acquisitions of real estate or in-substance real estate will not meet the definition of business and therefore are accounted for as asset acquisitions, unless specifically noted otherwise. The accounting model for asset acquisitions is similar to the accounting model for business combinations except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in recognition of goodwill or a bargain purchase gain. Additionally, because the accounting model for asset acquisitions is a cost accumulation model, preexisting interests in the acquired assets, if any, are not remeasured to fair value but continue to be accounted for at their historical cost. Direct acquisition costs are capitalized if an asset acquisition is probable. If we determine that an asset acquisition is no longer probable, no new costs are capitalized and all capitalized costs that are not recoverable are written off. The purchase price is allocated to the acquired assets and assumed liabilities, including land and buildings, as if vacant based on highest and best use for the acquired assets. The Company assesses and considers fair value of the operating properties based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions. The Company allocates the purchase price of properties considered to be business combinations and asset acquisitions to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Company’s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancellable term of the lease (including the below market fixed renewal periods that are considered probable, if applicable). Capitalized above-market lease values are amortized as a reduction of rental income over the remaining noncancellable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining noncancellable terms of the respective leases, including any below market fixed-rate renewal option periods that are considered probable. Other intangible assets also include in-place leases based on the Company’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods. Factors considered by the Company in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance, and other operating expenses, and estimates of lost rents at market rates during the expected lease-up periods, which primarily range from four In the event that a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values and tenant relationship values, is charged to expense and market rate adjustments (above or below) are recorded to revenue. Depreciation and Amortization The costs of buildings and improvements are depreciated using the straight-line method based on the following useful lives: buildings and improvements (5 to 55 years) and tenant improvements (the shorter of (i) the life of the asset (1 to 16 years) or (ii) the lease term). Construction-in-Progress Project costs directly associated with the development or redevelopment and construction of a real estate project are capitalized as construction-in-progress. Construction-in-progress also includes costs related to ongoing tenant improvement projects. In addition, interest, real estate taxes, and other expenses that are directly associated with the Company’s development or redevelopment activities are capitalized beginning when activities necessary to ready the asset for its intended use are in progress and capital expenditures have been made and ending when the property is placed in service. Interest expense is capitalized using the Company’s weighted average interest rate. Internal direct costs are capitalized to projects in which qualifying expenditures are being incurred. See Note 3 “Real Estate Investments,” for more information related to the capitalization of project costs. Ground Leases The Company is the lessee under long-term ground leases classified as operating leases. The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilizes a market-based approach to estimate the IBR for each individual lease. The base IBR is estimated utilizing observable mortgage and corporate bond rates, which are then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease. The right of use assets and lease liabilities are presented as “Right of use asset - operating leases, net” and “Lease liability - operating leases”, respectively, on the consolidated balance sheet as of December 31, 2022 and 2021, respectively. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations. The most recent CPI adjustment is used to determine the present value of the lease payments for an indexed lease and ultimately the right of use asset and corresponding lease liability. Rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs. Impairment of Real Estate Investments The Company reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company updates leasing and other assumptions regularly, paying particular attention to real estate investments where there is an event or change in circumstances that indicates an impairment in value. Additionally, the Company considers strategic decisions regarding the future development plans for real estate investment under development and other market factors. For real estate investments to be held and used, the Company analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets over, in most cases, a 10-year hold period. If there is significant possibility that the Company will dispose of assets earlier, it analyzes the recoverability using a probability weighted analysis of the undiscounted future cash flows expected to be generated from the operations and eventual disposition of each asset using various probable hold periods. If the recoverability analysis indicates that the carrying value of the tested real estate investment is not recoverable, the real estate investment is written down to its fair value and an impairment is recognized in the amount of the excess of the carrying amount of the asset over its fair value. If and when the Company’s plans change, it revises its recoverability analysis to use cash flows expected from operations and eventual disposition of each asset using hold periods that are consistent with its revised plans. Estimated future cash flows used in such analysis are based on the Company’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to market rental rates, capitalization rates, and recent sales data for comparable real estate investments. Future cash flows are discounted when determining fair value of an asset. Most of these assumptions are influenced by our direct experience with the real estate investments and their markets as well as market data obtained from real estate leasing and brokerage firms. Assets Held for Sale The Company generally reclassifies assets to held for sale when the transaction has been approved by its Board of Trustees, or by officers vested with authority to approve the transaction, and there are no known significant contingencies relating to the sale of the real estate investment within one year of the consideration date and the consummation of the transaction is otherwise considered probable. When a real estate investment is designated as held for sale, the Company stops depreciating the real estate investment and estimates the real estate investment’s fair value, net of selling costs. If the determination is made that the estimated fair value, net of selling costs, is less than the net carrying value of the real estate investment, an impairment is recognized, reducing the net carrying value of the real estate investment to estimated fair value less selling costs. For periods in which a real estate investment is classified as held for sale, the Company classifies the assets and liabilities, as applicable, of the real estate investment as held for sale on the consolidated balance sheet for such periods. Impairment of Land Held for Development When demand for build-to-suit properties declines and the ability to sell land held for development deteriorates, or other market factors indicate possible impairment in the recoverability of land held for development, it is reviewed for impairment by comparing its fair value to its carrying value. If the estimated sales value is less than the carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is generally determined using a market valuation approach, comparing the subject property to recent comparable market transactions in a similar location; or using estimated cash flows. Cash and Cash Equivalents Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company maintains cash equivalents in money market accounts with financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. The Company does not invest its available cash balances in money market funds. As such, available cash balances are appropriately reflected as cash and cash equivalents on the consolidated balance sheets. Restricted Cash Restricted cash consists of cash held as collateral to provide credit enhancement for the Company’s mortgage debt, cash for property taxes, capital expenditures and tenant improvements. Restricted cash also includes cash held by qualified intermediaries for possible investments in like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code in connection with sales of the Company’s properties. Restricted cash is included in “Other assets” in the consolidated balance sheets. Accounts Receivable and Accrued Rent Receivable Generally, leases with tenants are accounted for as operating leases. Minimum lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payment terms are recorded as “Accrued rent receivable, net” on the consolidated balance sheets. Included in current tenant receivables are tenant reimbursements which are comprised of amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses that are recognized as revenue in the period in which the related expenses are incurred. Accrued rent receivables are carried net of the allowances for doubtful accounts. The allowance for doubtful accounts is an estimate based on the Company's experience of the probability of future events confirming a loss and represents the estimated probable losses. The allowance is generally calculated by assigning risk factors by industry which are primarily based on the Company's historical collection and charge-off experience adjusted for current market conditions, which requires management's judgment. Investments in Unconsolidated Real Estate Ventures Under the equity method, investments in real estate ventures are recorded initially at cost and subsequently adjusted for equity in earnings, contributions, distributions, and impairments. The Company generally allocates income and losses from the unconsolidated real estate ventures based on the venture's distribution priorities, which may be different from its stated ownership percentage. For real estate ventures that are constructing assets to commence planned principal operations, the Company capitalizes interest expense to the extent that it is recoverable using the Company’s weighted average interest rate of consolidated debt and its investment balance as a basis. Planned principal operations commence when a property is available to lease and at that point in time, the Company ceases capitalizing interest to its investment basis. At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Company’s investments in real estate ventures. If any indicators of impairment are present, we calculate the fair value of the investment in the unconsolidated real estate venture. An investment is other than temporarily impaired only if the fair value of the investment in a real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. To the extent that an other than temporary impairment has occurred, an impairment charge is recorded in the amount of the excess of the carrying amount of the investment over the estimated fair value. Management is required to make significant judgments about the estimated fair value of its investments to determine if an impairment exists. Fair value is generally determined through income valuation approaches, including discounted cash flows and direct capitalization models. When the Company acquires an interest in or contributes assets to a real estate venture project, the difference between the Company’s cost basis in the investment and the value of the real estate venture or asset contributed is amortized over the life of the related assets, intangibles, and liabilities and such adjustment is included in the Company’s share of equity in income of unconsolidated real estate ventures. Deferred Costs Certain costs incurred in connection with property leasing are capitalized as deferred leasing costs. Deferred leasing costs consist primarily of third-party and internal leasing commissions that are amortized using the straight-line method over the life of the respective lease which generally ranges from 1 to 16 years. Management re-evaluates the remaining useful lives of leasing costs in conjunction with changes in the respective lease term. Notes Receivable The Company accounts for notes receivable on its balance sheet at amortized cost, net of allowance for loan losses. Interest income is recognized over the term of the notes receivable and is calculated based on the contractual terms of each note agreement. At inception and on a quarterly basis, the Company evaluates notes receivable for the current estimate of expected credit losses over the contractual term using a probability-of-default method and reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses to reflect management's current estimate. Management considers performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor in its evaluation. Notes receivable are placed on nonaccrual status when management determines, after considering economic and business conditions and collection efforts, that the loans are impaired, or collection of interest is doubtful. Uncollectible interest previously accrued is recognized as bad debt expense. Interest income on nonaccrual loans is recognized only to the extent that cash payments are received. Deferred Financing Costs Costs incurred in connection with debt financing are capitalized as a direct deduction from the carrying value of the debt, except for costs capitalized related to the Company’s unsecured credit facility, which are capitalized within the “Deferred costs, net” caption on the accompanying consolidated balance sheets. Deferred financing costs are charged to interest expense over the terms of the related debt agreements. Deferred financing costs consist primarily of loan fees which are amortized over the related loan term on a basis that approximates the effective interest method. Deferred financing costs are accelerated, when debt is extinguished, as part of the “Interest expense-amortization of deferred financing costs” caption within the Company’s consolidated statements of operations. Original issue discounts are recognized as part of the gain or loss on extinguishment of debt, as appropriate. Revenue Recognition Rental Revenue The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. The operating leases have various expiration dates. As of December 31, 2022 and 2021, the Company did not have any leases classified as direct-financing or sales-type leases. Fixed lease payments under tenant leases, determined to be collectible, are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based. Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis. The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded an improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term. For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are generally recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term. The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and included in the “Rents” caption within the Company's consolidated statements of operations. Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract. Point of Sale Revenue Point of sale revenue consists of parking, restaurant, and flexible stay revenue from the Company’s hotel operations. Point of sale service obligations are performed daily, and the customer obtains control of those services simultaneously as they are performed. Accordingly, revenue is recorded on an accrual basis as it is earned, coinciding with the services that are provided to the Company’s customers. Parking and flexible stay revenue is recognized within rents and restaurant income is recognized within other income on the consolidated statements of operations. Third party management fees, labor reimbursement, and leasing The Company performs property management services for its managed real estate ventures and third-party property owners of real estate that consist of: (i) providing leasing services, (ii) property inspections, (iii) repairs and maintenance monitoring, and (iv) financial and accounting oversight. For these services, the Company earns management fees monthly, which are based on a fixed percentage of each managed property’s financial results, and is reimbursed for the labor costs incurred by its property management employees as services are rendered to the property owners. The Company determined that control over the services is passed to its customers simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to the Company’s customers. Lease commissions are earned when the Company, as a broker for the third party property owner, executes a lease agreement with a tenant. Based on the terms of the Company’s lease commission contracts, the Company's performance obligation to the customer has been completed upon execution of each lease agreement. The Company’s lease commissions are earned based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component. Development fee revenue is earned through two different sources: (i) the Company performs development services for third parties as an agent and earns fixed development fees based on a percentage of construction costs incurred over the construction period, and (ii) the Company acts as a general contractor on behalf of one of its managed real estate ventures. The Company acts as the principal construction company for the real estate ventures and records gross revenue as it provides construction services based on the quantifiable construction outputs. In applying the cost based output method of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine its progress towards contract completion and to calculate the corresponding gross revenue and gross profit to recognize. For any costs that do not contribute to satisfying the Company’s performance obligations, it excludes such costs from its output methods of revenue recognition as the amounts are not reflective of transferring control of the outputs to the customer. The use of estimates in this calculation involves significant judgment. Common Development Cost Estimates for Contributions to Development Joint Ventures When land is contributed to a development joint venture, estimated common development costs include actual costs incurred and estimates of future common development costs benefiting the property sold. When land is sold, common development costs, if they cannot be specifically identified, are allocated to each sold parcel based upon its relative sales value. For purposes of allocating common development costs, estimates of future sales proceeds and common development costs are re-evaluated throughout the year, with adjustments being allocated prospectively to the remaining land parcels available for sale. The common development cost estimates for development joint ventures are highly judgmental as they are sensitive to cost escalation, sales price escalation and pace of absorption, which are subject to judgment and are affected by expectations about future market or economic conditions. Changes in the assumptions used to estimate future common development costs could result in a significant impact on the amounts recorded as net gain on disposition of real estate or net gain on sale of undepreciated real estate. The following is a summary of revenue earned by the Company’s reportable segments (see Note 19 “Segment Information,” for further information) during the year ended December 31, 2022 (in thousands): Philadelphia CBD Pennsylvania Suburbs Austin, Texas Metropolitan Washington, D.C. Other Corporate (a) Total Fixed rent $ 151,034 $ 116,926 $ 60,831 $ 16,686 $ 9,805 $ (1,895) $ 353,387 Variable rent 51,346 11,615 32,958 1,283 2,644 (35) 99,811 Total lease revenue 202,380 128,541 93,789 17,969 12,449 (1,930) 453,198 Amortization of deferred market rents 1,308 10 1,264 — — — 2,582 Daily parking & hotel flexible stay 14,390 — 361 84 236 — 15,071 Total rents 218,078 128,551 95,414 18,053 12,685 (1,930) 470,851 Third party management fees, labor reimbursement and leasing 287 35 486 3,723 1,988 17,613 24,132 Other income 2,510 354 42 |
REAL ESTATE INVESTMENTS
REAL ESTATE INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
REAL ESTATE INVESTMENTS | 3. REAL ESTATE INVESTMENTS As of December 31, 2022 and 2021, the gross carrying value of the operating properties was as follows (in thousands): December 31, 2022 December 31, 2021 Land $ 403,998 $ 410,144 Building and improvements 2,760,357 2,653,492 Tenant improvements 452,885 408,966 Total $ 3,617,240 $ 3,472,602 Construction-in-Progress Internal direct construction costs totaling $9.3 million in 2022, $7.9 million in 2021, and $8.4 million in 2020 and interest totaling $4.7 million in 2022, $7.0 million in 2021, and $4.6 million in 2020 were capitalized related to the development, redevelopment and construction of tenant improvements of certain properties and land holdings. During the years ended December 31, 2022, 2021 and 2020, the Company’s internal direct construction costs are comprised of capitalized salaries. The following table shows the amount of compensation costs (including bonuses and benefits) capitalized for the years presented (in thousands): December 31, 2022 2021 2020 Development $ 5,343 $ 4,815 $ 4,802 Redevelopment 1,484 1,170 543 Tenant Improvements 2,505 1,917 3,021 Total $ 9,332 $ 7,902 $ 8,366 2022 Acquisitions 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 additional density is included in prepaid leasehold interests in land held for development in the consolidated balance sheets. See below regarding disposition of 500,000 square feet of FAR. 2021 Acquisitions During the year ended December 31, 2021, the Company did not acquire any properties from a third party. 2020 Acquisitions The following table summarizes the property acquisitions during the year ended December 31, 2020 (dollars in thousands): Property/Portfolio Name Acquisition Date Location Property Type Rentable Square Feet/Acres Purchase Price (a) 155 King of Prussia Road February 27, 2020 Radnor, PA Land 7.75 acres $ 11,250 1505-11 Race Street November 5, 2020 Philadelphia, PA Office 119,763 $ 9,700 250 King of Prussia Road (b) November 30, 2020 Radnor, PA Office 169,843 $ 20,250 (a) Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties. (b) This property was placed into redevelopment and is therefore included within Construction-in-progress on the consolidated balance sheets. The Company accounted for the acquisition of 1501-11 Race Street as an asset acquisition and therefore capitalized $0.3 million of acquisition related costs. The Company utilized a number of sources in making estimates of fair value (including comparative sales transactions and market leasing assumptions) for purposes of allocating the purchase price to tangible and intangible assets acquired The acquisition values have been allocated as follows (in thousands): 1505-11 Race Street Building, land and improvements $ 9,723 Intangible assets acquired 2,422 Below market lease liabilities assumed (2,193) Total unencumbered acquisition value 9,952 Amortization period of intangible assets 1.5 years Amortization period of below market liabilities assumed 1.5 years Dispositions The following table summarizes the property dispositions during the years ended December 31, 2022, 2021 and 2020 (dollars in thousands): Property/Portfolio Name Disposition Date Location Property Type Rentable Square Feet/Acres Sales Price Gain/(Loss) on Sale (a) 200 Barr Harbor Drive November 22, 2022 West Conshohocken, PA Office 86,000 $ 30,500 $ 8,740 11501 Burnett Road (h) July 29, 2022 Austin, TX Land 4.7 acres $ 32,513 $ 8,340 3151 Market Street (g) July 14, 2022 Philadelphia, PA Leasehold Interest 0.8 acres $ 30,394 $ 2,583 Gibbsboro Portfolio (f) June 28, 2022 Gibbsboro, NJ Office/Land 42,809/4.0 acres $ 4,100 $ 831 25 M Street (e) April 14, 2022 Washington, D.C. Land 0.8 acres $ 29,675 $ 3,836 Gateway G & H January 20, 2022 Richmond, VA Land 10.0 acres $ 1,600 $ 897 1100 Lenox Drive September 8, 2021 Lawrenceville, NJ Land 5.0 acres $ 2,575 $ 68 2100-2200 Lenox Drive July 6, 2021 Lawrenceville, NJ Land 35.2 acres $ 8,900 $ 842 3025 JFK Boulevard February 2, 2021 Philadelphia, PA Leasehold Interest 1.0 acre $ 34,800 $ 2,000 Mid-Atlantic Office Portfolio (b) (d) December 21, 2020 Various Office 1,128,645 $ 192,943 $ 15,164 One and Two Commerce Square (c) July 21, 2020 Philadelphia, PA Office 1,896,142 $ 115,000 $ 271,905 Keith Valley June 15, 2020 Horsham, PA Land 14.0 Acres $ 4,000 $ 201 52 East Swedesford Road March 19, 2020 Malvern, PA Office 131,077 $ 18,000 $ 2,336 (a) Gain/(Loss) on Sale is net of closing and other transaction related costs. (b) The Company sold a 60% equity interest in a portfolio of twelve suburban office properties containing an aggregate of 1.1 million square feet (“Mid-Atlantic Office Portfolio”), nine of which are located in the Pennsylvania suburbs and three of which are located in Maryland, to an unrelated third party for a gross sales price of $192.9 million. The transaction resulted in deconsolidation of the properties and formation of PA/MD NNN Office JV, LLC (“Mid-Atlantic Office JV”). The Company recorded its investment at fair value and recognized a gain of $15.2 million in “Net gain on disposition of real estate” on the consolidated statements of operations. See Note 4 “Investment in Unconsolidated Real Estate Ventures,” for further information. (c) The Company sold a 30% preferred equity interest in two office buildings located in Philadelphia, Pennsylvania, to an unrelated third party for $115.0 million (the “Commerce Square Venture Transaction”), which resulted in deconsolidation of the properties and formation of Brandywine Commerce I LP and Brandywine Commerce II LP (collectively, the “Commerce Square Venture”). The transaction valued the properties at $600.0 million. The Company recorded its investment at fair value and recognized a gain of $271.9 million in “Net gain on disposition of real estate” on the consolidated statements of operations. See Note 4 “Investment in Unconsolidated Real Estate Ventures,” for further information. (d) The sales price includes $4.1 million of variable consideration held in escrow that will be released to the Company over a six (e) On September 30, 2022, the Company recognized $0.4 million of additional gain on disposition of real estate. (f) 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 twelve months ended December 31, 2022. (g) On July 14, 2022, the Company contributed 500,000 square feet of FAR relating to its 99-year prepaid leasehold interest at 3151 Market Street in Philadelphia, Pennsylvania, acquired on April 29, 2022, to a newly formed joint venture with an unaffiliated third party. The Company's initial deemed contribution in the project was $30.4 million and the transaction resulted in deconsolidation of the property and conversion of Brandywine 3151 Market, LP, (formerly a wholly-owned subsidiary of the Operating Partnership) to a real estate venture (“3151 Market Street Venture”). The Company recorded its investment at fair value and recognized a gain, net of transaction costs, of $2.6 million, in “Net gain on sale of undepreciated real estate” on the consolidated statements of operations. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information. (h) On July 29, 2022, the Company contributed a 4.7 acre parcel of land held for development at 11501 Burnet Road in Austin, Texas to a newly formed joint venture with an unaffiliated third party. The project is part of the Uptown ATX master development. The Company's combined contributed initial land investment in the project was $32.5 million and the transaction resulted in the deconsolidation of the property and formation of Brandywine Uptown Office LLC and Brandywine One Uptown Multifamily LLC, (together, “One Uptown Ventures)”). The Company recorded its investment at fair value and recognized a gain of $8.3 million in “Net gain on disposition of real estate” on the consolidated statements of operations. Gain on sale of $8.3 million is calculated as the difference between the estimated relative sales value of the contributed land and the estimated total cost allocations per block. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information. 3025 JFK Venture In addition, on February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to a newly formed joint venture with an unaffiliated third party. The project is part of the Schuylkill Yards master development. The Company's investment in the project was valued at $34.8 million and the transaction resulted in deconsolidation of the property and conversion of Brandywine Opportunity Fund, L.P. (formerly a wholly-owned subsidiary of the Operating Partnership) to a real estate venture ( “ 3025 JFK Venture ” ). The Company recorded its investment at fair value and recognized a gain of $2.0 million in “ Net gain on sale of undepreciated real estate ” on the consolidated statements of operations. See Note 4, “ Investment in Unconsolidated Real Estate Ventures, ” for further information. 3151 Market Venture On July 14, 2022, the Company contributed 500,000 square feet of FAR relating to its 99-year prepaid leasehold interest at 3151 Market Street in Philadelphia, Pennsylvania, acquired on April 29, 2022, to a newly formed joint venture with an unaffiliated third party. The Company's initial deemed contribution in the project was $30.4 million and the transaction resulted in deconsolidation of the property and conversion of Brandywine 3151 Market, LP, (formerly a wholly-owned subsidiary of the Operating Partnership) to a real estate venture (“3151 Market Street Venture”). The Company recorded its investment at fair value and recognized a gain, net of transaction costs, of $2.6 million, in “Net gain on sale of undepreciated real estate” on the consolidated statements of operations. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information. Subsequent to December 31, 2022, the Company contributed an additional 200,000 square feet of FAR density, usable pursuant to the Schuylkill Yards Project master development agreement to the 3151 Market Street Venture pursuant to amendment to the partnership agreement. The Company deconsolidated the prepaid ground lease of $7.8M and recorded its investment in the 3151 Market Street Venture at fair value and recognized a gain, net of transaction costs, of $0.8 million. Held for Use Impairment During the year ended December 31, 2022, the Company recognized an impairment loss totaling approximately $4.7 million on a property located in the Metropolitan Washington, D.C. segment. The Company’s estimated fair value, is considered Level 3 in accordance with ASC 820, and was based on a pending offer form a third party to acquire the property and the subsequent execution of a purchase and sale agreement. Held for Sale As of December 31, 2022, the Company had no assets held for sale. As of December 31, 2021, the Company determined that the sale of two adjacent parcels of land within the Other segment totaling 10.0 acres was probable and classified these properties as held for sale. As such, $0.6 million was classified as Assets held for sale, net” on the consolidated balance sheets. The Company closed on the sale of the two parcels of land on January 20, 2022 for an aggregate sales price of $1.6 million. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 4. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES As of December 31, 2022, the Company held ownership interests in twelve unconsolidated real estate ventures for a net aggregate investment balance of $532.2 million, which includes a negative investment balance in one unconsolidated real estate venture of $35.4 million, reflected within “Other liabilities” on the consolidated balance sheets. As of December 31, 2022, five of the real estate ventures owned properties that contained an aggregate of approximately 9.1 million net rentable square feet of office space; two real estate ventures owned 1.4 acres of land held for development; four real estate venture owned 7.5 acres of land in active development; and one real estate venture owned a mixed used tower comprised of 250 apartment units and 0.2 million net rentable square feet of office/retail space. The Company accounts for its interests in the unconsolidated real estate ventures, which range from 15% to 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 $8.2 million, $8.1 million and $4.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company earned leasing commissions from the unconsolidated real estate ventures of $2.5 million, $3.8 million and $1.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company had outstanding accounts receivable balances from the unconsolidated real estate ventures of $2.9 million and $2.5 million as of December 31, 2022 and 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 Company records operating losses of a real estate venture in excess of its investment balance if the Company is liable for the obligations of the real estate venture or is otherwise committed to provide financial support to the real estate venture. The Company’s investment in the unconsolidated real estate ventures as of December 31, 2022 and 2021, and the Company’s share of the unconsolidated real estate ventures’ income (loss) for the years ended December 31, 2022, 2021, and 2020 was as follows (in thousands): Ownership Percentage Carrying Amount Company's Share of unconsolidated real estate venture Income (Loss) Unconsolidated Real Estate Venture Debt at 100%, gross 2022 2021 2022 2021 2020 2022 2021 Office Properties Commerce Square Venture 70% (a) $ 238,105 $ 247,798 $ (12,128) $ (15,501) $ (9,150) $ 206,737 $ 213,069 Mid-Atlantic Office Venture 40% (a) 31,005 31,680 412 932 96 128,904 123,015 Brandywine - AI Venture LLC 50% — — — (721) 185 — — Herndon Innovation Center Metro Portfolio Venture, LLC 15% 15,304 15,844 (536) (174) (358) 207,302 207,302 MAP Venture (b) 50% (35,411) (24,396) (8,340) (8,683) (6,570) 182,053 184,263 Cira Square 20% 27,815 — (985) — — 257,700 — Other 4040 Wilson Venture (c) 50% 29,633 31,059 (1,211) (2,258) (2,162) 145,070 145,000 1919 Venture (d) 50% — 13,791 1,392 427 59 — 88,860 Development Properties 3025 JFK Venture (c) 55% 57,630 56,370 (35) (118) — 60,118 — JBG - 51 N Street (c) 70% 21,208 21,213 (382) (402) (457) — — JBG - 1250 First Street Office (c) 70% 17,759 17,751 (195) (199) (227) — — 3151 Market Street Venture (c) 55% 63,751 — (8) — — — — One Uptown - Office (c) 50% 34,980 — — — — 16,895 — One Uptown - Multifamily (c) 50% 30,445 — — — — — — $ 532,224 $ 411,110 $ (22,016) $ (26,697) $ (18,584) $ 1,204,779 $ 961,509 (a) Ownership percentage represents the Company’s combined interest including preferred and common equity holdings. See “Commerce Square Venture” and “Mid-Atlantic Office JV” sections below for more information. (b) Included within “Other Liabilities” on the consolidated balance sheet. (c) This entity is a VIE. (d) On November 30, 2022, the Company sold its interest in 1919 Venture. See “1919 Venture” sections for more information on the disposal. The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Net property $ 2,117,226 $ 1,563,263 Other assets 506,213 434,687 Other liabilities 446,101 331,947 Debt, net 1,198,213 956,668 Equity (a) 979,125 709,335 (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 twelve-month periods ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Revenue $ 244,981 $ 214,792 $ 150,276 Operating expenses (124,608) (117,273) (85,812) Interest expense, net (49,007) (30,569) (22,661) Depreciation and amortization (103,378) (97,147) (70,805) Provision for impairment — (1,393) — Net loss $ (32,012) $ (31,590) $ (29,002) Ownership interest % Various Various Various Company's share of net loss $ (21,594) $ (25,972) $ (18,540) Basis adjustments and other (422) (725) (44) Equity in loss of unconsolidated real estate ventures $ (22,016) $ (26,697) $ (18,584) As of December 31, 2022, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands): 2023 $ 388,789 2024 593,907 2025 60,118 2026 161,965 2027 — Thereafter — Total principal payments 1,204,779 Net deferred financing costs (6,837) Net original issue premium 271 Outstanding indebtedness $ 1,198,213 One Uptown Ventures On December 1, 2021, the Company established the One Uptown Ventures with affiliates of Canyon Partners Real Estate to commence development of One Uptown, a $335.6 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 $64.5 million of the combined project costs in exchange for a 50% preferred equity interest in each of the two joint ventures, with the Company retaining a 50% common equity interest in each. Under the terms of each of the joint venture agreements, the joint venture partner had no obligation to fund any portion of the applicable project costs until the closing of the applicable construction loan. The absence of this obligation prevented 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 Secured Overnight Offering Rate ( “ SOFR ”) plus 3.00% and the multifamily joint venture closed on an $85.0 million construction loan 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 upon the closing of the loans. The Company has determined that the each of the One Uptown Ventures is a VIE. As a result, the Company used the VIE model under the accounting standard for consolidation in order to determine whether to consolidate the One Uptown Ventures. Based upon each member's shared power over the activities of the One Uptown Ventures under the operating and related agreements, and the Company's lack of control over the development and construction phases of the project, the One Uptown Ventures are accounted for under the equity method of accounting. 3151 Market Street Venture On July 14, 2022, the Company formed a joint venture, with an unaffiliated third party, to develop a life science/office building containing approximately 417,000 rentable square feet under a long-term ground lease located at 3151 Market Street in Philadelphia, Pennsylvania. The estimated project cost is approximately $308 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. The Company has determined that the 3151 Market Street Venture is VIE. As a result, the Company used the VIE model under the accounting standard for consolidation in order to determine whether to consolidate the 3151 Market Street Venture. Based upon each member's shared power over the activities of the 3151 Market Street Venture under the operating and related agreements, and the Company's lack of control over the development and construction phases of the project, 3151 Market Street Venture is accounted for under the equity method of accounting. Cira Square On March 17, 2022, the Company formed a joint venture, Cira Square REIT, LLC (“Cira Square Venture”), for the purpose of acquiring Cira Square, an office property located at 2970 Market Street in Philadelphia, Pennsylvania containing 862,692 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 obtained $257.7 million of third-party debt financing secured by the property. The loan bears interest at 3.50% over one-month term SOFR per annum capped at at total maximum interest rate of 6.75% per annum, and matures in March 2024. Based on the facts and circumstances at the formation of Cira Square Venture, the Company determined that the venture is not a VIE in accordance with the accounting standard for the consolidation of VIEs. As a result, the Company used the voting interest model under the accounting standard for consolidation in order to determine whether to consolidate Cira Square Venture. Based upon each member's substantive participating rights over the activities of Cira Square Venture under the operating and related agreements, it is not consolidated by the Company, and is accounted for under the equity method of accounting. 4040 Wilson Venture The 4040 Wilson LLC Venture (“4040 Wilson”) consists of one property containing an aggregate of 225,000 square feet of office/retail and 250 apartment units, located in the Metropolitan Washington, D.C. segment. The Company and its partner each own a 50% interest in 4040 Wilson. The residential component and office/retail portion of 4040 Wilson were substantially complete and placed into service during the first quarter of 2020 and the first quarter of 2021, respectively. During the fourth quarter of 2021, 4040 Wilson refinanced the $150.0 million secured construction loan into a $155.0 million mortgage loan secured by the property. The interest rate on this loan is 1.8% over term SOFR and matures in December 2026. Effective January 3, 2023, this debt is swapped to a fixed rate of 5.70% through the maturity of the loan. Brandywine - AI Venture During the year ended December 31, 2021, Brandywine - AI Venture, recorded a $1.4 million held for sale impairment charge related to 3141 Fairview Park Drive. The Company’s share of the impairment charge was $0.7 million, which is reflected in “Equity in loss of Real Estate Ventures” in the consolidated statements of operations for the year ended December 31, 2021. The impairment was measured based on an executed sale agreement with a third-party. The Company determined that its investment in the real estate venture is not impaired as the Company's share of the distributable cash is in excess of the Company's basis in the real estate venture. On November 9, 2021, BDN AI Venture sold 3141 Fairview Park Drive, the last remaining office property, totaling 183,618 rentable square feet in Falls Church, Virginia, at an aggregate sales price of $27.6 million. The Company received cash proceeds of $12.6 million after closing costs. The Company recorded an $3.0 million gain within the caption “Net gain on real estate venture transactions” within its consolidated statements of operations for the year ended December 31, 2021 upon liquidation of the venture. During 2019, BDN - AI Venture recorded a $5.6 million held for use impairment charge The Company determined that its investment in the real estate venture was not impaired as the Company's share of the distributable cash was in excess of the Company's basis in the real estate venture. During 2019, BDN - AI Venture transferred an office building located in Falls Church, Virginia containing 180,659 rentable square feet to the mortgage lender in full satisfaction of the lender’s outstanding $26.0 million mortgage loan. The mortgage loan was nonrecourse to the Company. The Company recognized its $2.2 million share of the gain on debt forgiveness in “Net gain on real estate venture transactions” in the consolidated statements of operations for the year ended December 31, 2019. 3025 JFK Venture On February 2, 2021, the Company contributed its investment in a 99-year prepaid leasehold interest in a one-acre land parcel held for development at 3025 JFK Boulevard in Philadelphia, Pennsylvania to the 3025 JFK Venture. The Company's initial investment in this real estate venture at February 2, 2021 was $34.8 million. The real estate venture was formed to develop a 570,000 square foot mixed-use building at property under the long-term ground lease. The estimated project cost is approximately $287.3 million, and the joint venture partner agreed, subject to customary funding conditions, to fund up to approximately $45.2 million of the project costs in exchange for a 45% preferred equity interest in the venture and the Company will retain a 55% preferred equity interest. On July 23, 2021, the 3025 JFK Venture closed on a $186.7 million construction loan, which bears interest at 3.50% plus LIBOR (subject to a LIBOR floor of 0.25%) per annum and matures in July 2025. In addition to its $34.8 million credit for contribution of the leasehold interest at 3025 JFK Venture, the Company has funded $20.5 million of project costs as of December 31, 2022. The remaining project costs will be funded by the joint venture partner and the construction loan. The Company has determined that the 3025 JFK Venture is a VIE. As a result, the Company used the VIE model under the accounting standard for consolidation in order to determine whether to consolidate the 3025 JFK Venture. Based upon each member’s shared power over the activities of 3025 JFK Venture under the operating and related agreements, and the Company’s lack of control over the development and construction phases of the project, 3025 JFK Venture is accounted for under the equity method of accounting. Mid-Atlantic Office JV On December 21, 2020, the Company contributed a portfolio of twelve properties containing an aggregate of 1,128,645 square feet, nine of which are located in the Pennsylvania suburbs segment and three located in the Metropolitan Washington, D.C segment, to the Mid-Atlantic Office JV, for a gross sales price of $192.9 million. After the transaction, the Company owns approximately 25% of the equity interest in the Mid-Atlantic Office JV through a $20.0 million preferred equity holding and approximately 15% of the equity interest through a common equity interest (representing 20% of the total common equity), for a combined approximately 40% equity interest in the venture. On the closing date, Mid-Atlantic Office JV also obtained $147.4 million of third-party debt financing secured by the twelve properties within the venture, with an initial advance of $120.8 million. The remaining funds available under the loan are $18.5 million. The loan bears interest at LIBOR + 3.15% capped at a total maximum interest rate of 5.7% and matures on January 9, 2024. Commerce Square Venture On July 21, 2020, the Company sold a 30% preferred equity interest in the entities that own One Commerce Square and Two Commerce Square, two office properties containing 1,896,142 square feet in Philadelphia, Pennsylvania. After the transaction, the Company owns approximately 32% of the equity interest in Commerce Square Venture through preferred equity interest holdings and approximately 38% of the equity interest in Commerce Square Venture as the sole common equity holder, for a combined approximately 70% equity interest in the venture. The properties held by the venture remain encumbered by the existing mortgages. Herndon Innovation Center Metro Portfolio Venture, LLC The Herndon Innovation Center Metro Portfolio Venture, LLC (“Herndon Innovation Center”) consists of eight properties containing an aggregate of 1,293,197 square feet, located in the Metropolitan Washington, D.C. segment. The Company and its partner own 15% and 85% interests in the Herndon Innovation Center, respectively. MAP Venture The MAP Venture owns 58 office properties that contain an aggregate of 3,924,783 square feet located in the Pennsylvania Suburbs, New Jersey/Delaware, Metropolitan Washington, D.C. and Richmond, Virginia (“MAP Venture”). The MAP Venture leases the land parcels under the 58 office properties through a ground lease that extends through February 2115. Annual payments by the MAP Venture, as tenant under the ground lease, initially total $11.9 million and increase 2.5% annually through November 2025. Thereafter, annual rental payments increase by 2.5% or CPI at the discretion of the lessor. 1919 Venture On November 30, 2022, the Company sold its 50% ownership interest in the 1919 Venture for a gross sales price of $83.2 million, a portion of which satisfied in full the $44.4 million outstanding loan between the Company and the venture. The Company recorded a gain on sale of $26.7 million with the caption “Net gain on real estate venture transactions” within its consolidated statement of operations for the year ended December 31, 2022. JBG Ventures JBG Ventures consists of 51 N 50 Patterson, Holdings, LLC Venture (“51 N Street”) and 1250 First Street Office, LLC Venture (“1250 First Street”), with the Company owning a 70.0% equity interest and JBG/DC Manager, LLC (“JBG”) owning a 30.0% equity interest in each of the two ventures. 51 N Street owns 0.9 acres of undeveloped land and 1250 First Street, owns 0.5 acres of undeveloped land. |
DEBT AND PREFERRED EQUITY INVES
DEBT AND PREFERRED EQUITY INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
DEBT AND PREFERRED EQUITY INVESTMENTS | 5. DEBT AND PREFERRED EQUITY INVESTMENTS Austin Preferred Equity Investment On December 31, 2020, the Company invested $50.0 million in exchange for a preferred equity interest in a single-purpose entity that owned two stabilized office buildings located in Austin, Texas. The Company accounted for this mandatorily redeemable investment as a note receivable, which was included within “Other assets” on the consolidated balance sheets.The preferred equity interest accrued a 9.0% annual return, compounded and paid monthly. The investment was required to be redeemed no later than December 31, 2023 (subject to a one-year extension option). On September 3, 2021, the $50.0 million investment was redeemed prior to maturity. As a result, the Company recognized an incremental $2.8 million of income on early redemption related to its accelerated minimum return and exit fees paid in cash on the redemption date during the three months ended September 30, 2021, which is included in “Interest and investment income” on the consolidated statements of operations. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | 6. LEASES Lessor Accounting The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2022 are as follows (in thousands): Year 2023 $ 347,142 2024 344,641 2025 325,166 2026 304,102 2027 263,532 Thereafter 1,041,686 Lessee Accounting As of December 31, 2022, the Company is the lessee under six long-term ground leases classified as “operating leases” in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed. The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands): Year Ended December 31, Lease Cost 2022 2021 Fixed lease cost $ 2,100 $ 2,100 Variable lease cost 67 43 Total $ 2,167 $ 2,143 Weighted-average remaining lease term (years) 54.6 55.2 Weighted-average discount rate 6.3 % 6.3 % Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 7 to 62 years. Lease payments on noncancellable leases at December 31, 2022 are as follows (in thousands): Year Minimum Rent 2023 $ 1,263 2024 1,305 2025 1,321 2026 1,338 2027 1,355 Thereafter 106,437 Total lease payments $ 113,019 Less: Imputed interest 89,853 Present value of operating lease liabilities $ 23,166 The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses. |
LEASES | 6. LEASES Lessor Accounting The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2022 are as follows (in thousands): Year 2023 $ 347,142 2024 344,641 2025 325,166 2026 304,102 2027 263,532 Thereafter 1,041,686 Lessee Accounting As of December 31, 2022, the Company is the lessee under six long-term ground leases classified as “operating leases” in the consolidated balance sheets. Certain of the Company’s ground leases contain extension options and the Company considered all relevant factors in determining if it was reasonably certain that it would exercise such extension options. The Company concluded that it was not reasonably certain that it would exercise the extension options and, therefore, has not included the extension period in the remaining lease terms. With the exception of certain ground leases that are subject to rent increases periodically based on the CPI index, all lease payments under the ground lease are fixed. The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands): Year Ended December 31, Lease Cost 2022 2021 Fixed lease cost $ 2,100 $ 2,100 Variable lease cost 67 43 Total $ 2,167 $ 2,143 Weighted-average remaining lease term (years) 54.6 55.2 Weighted-average discount rate 6.3 % 6.3 % Lease payments by the Company under the terms of all noncancellable ground leases of land are expensed on a straight-line basis regardless of when payments are due. The Company’s ground leases, excluding prepaid ground leases, have remaining lease terms ranging from 7 to 62 years. Lease payments on noncancellable leases at December 31, 2022 are as follows (in thousands): Year Minimum Rent 2023 $ 1,263 2024 1,305 2025 1,321 2026 1,338 2027 1,355 Thereafter 106,437 Total lease payments $ 113,019 Less: Imputed interest 89,853 Present value of operating lease liabilities $ 23,166 The Company obtained ground tenancy rights related to three properties in Philadelphia, Pennsylvania, which provide for contingent rent participation by the lessor in certain capital transactions and net operating cash flows of the properties after certain returns are achieved by the Company. Such amounts, if any, will be reflected as contingent rent when incurred. The ground leases also provide for payment by the Company of certain operating costs relating to the land, primarily real estate taxes. The above schedule of future minimum rental payments does not include any contingent rent amounts or any reimbursed expenses. |
DEFERRED COSTS
DEFERRED COSTS | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
DEFERRED COSTS | 7. DEFERRED COSTS As of December 31, 2022 and 2021, the Company’s deferred costs were comprised of the following (in thousands): December 31, 2022 Total Cost Accumulated Amortization Deferred Costs, net Leasing costs $ 155,457 $ (62,920) $ 92,537 Financing costs - Unsecured Credit Facility 4,688 (586) 4,102 Total $ 160,145 $ (63,506) $ 96,639 December 31, 2021 Total Cost Accumulated Amortization Deferred Costs, net Leasing costs $ 143,895 $ (57,445) $ 86,450 Financing costs - Unsecured Credit Facility 6,299 (5,887) 412 Total $ 150,194 $ (63,332) $ 86,862 |
INTANGIBLE ASSETS AND LIABILITI
INTANGIBLE ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND LIABILITIES | 8. INTANGIBLE ASSETS AND LIABILITIES As of December 31, 2022 and 2021, the Company’s intangible assets/liabilities were comprised of the following (in thousands): December 31, 2022 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 55,715 $ (37,437) $ 18,278 Tenant relationship value 167 (104) 63 Above market leases acquired 331 (221) 110 Total intangible assets, net $ 56,213 $ (37,762) $ 18,451 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 20,985 $ (10,663) $ 10,322 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 For the years ended December 31, 2022, 2021, and 2020, the Company accelerated the amortization of intangible assets by approximately $0.4 million, $3.6 million, and $0.3 million, respectively, as a result of tenant move-outs prior to the end of the associated lease term. For the years ended December 31, 2022, 2021, and 2020 the Company accelerated the amortization of approximately $0.1 million, $0.6 million, and $0.1 million of intangible liabilities as a result of tenant move-outs. As of December 31, 2022, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands): Assets Liabilities 2023 $ 6,573 $ 1,516 2024 4,332 1,305 2025 3,154 1,029 2026 1,094 739 2027 809 623 Thereafter 2,489 5,110 Total $ 18,451 $ 10,322 |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | 9. DEBT OBLIGATIONS The following table sets forth information regarding the Company’s consolidated debt obligations outstanding as of December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Effective Maturity UNSECURED DEBT $600 million Unsecured Credit Facility $ 88,500 $ 23,000 SOFR + 1.15% June 2026 Unsecured Term Loan 250,000 250,000 SOFR + 1.30% June 2027 (a) $350.0M 3.95% Guaranteed Notes due 2023 54,301 350,000 3.87% February 2023 (b) $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 7.55% Guaranteed Notes due 2028 350,000 — 7.73% March 2028 $350.0M 4.55% Guaranteed Notes due 2029 350,000 350,000 4.30% October 2029 Indenture IA (Preferred Trust I) 27,062 27,062 LIBOR + 1.25% March 2035 Indenture IB (Preferred Trust I) 25,774 25,774 LIBOR + 1.25% April 2035 Indenture II (Preferred Trust II) 25,774 25,774 LIBOR + 1.25% July 2035 Principal balance outstanding 1,971,411 1,851,610 Plus: original issue premium (discount), net 2,934 8,187 Less: deferred financing costs (9,307) (6,211) Total unsecured indebtedness $ 1,965,038 $ 1,853,586 (a) On November 23, 2022, the unsecured term loan of $250.0 million was swapped to a fixed rate of 5.01% and matures on June 30, 2027. The effective date of the swap is January 31, 2023. (b) Remaining balance was redeemed on January 20, 2023. 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. Unsecured Credit Facility and Unsecured Term Loan On June 30, 2022, the Company entered into 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. Upon closing of the 2022 Credit Agreement, the Term Loan was funded in full and the proceeds thereof, together with cash on hand, were used to prepay in full the Company’s unsecured term loan (“Term Loan C”) in the principal amount of $250.0 million, together with accrued and unpaid interest thereon. Term Loan C was scheduled to mature on October 8, 2022. 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 2022 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 September 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. The Company had $88.5 million of borrowings under the Revolving Credit Facility as of December 31, 2022. During the twelve months ended December 31, 2022, the weighted-average interest rate on Revolving Credit Facility borrowings was 3.04% resulting in $5.6 million of interest expense. During the twelve months ended December 31, 2021 weighted-average interest rate on Revolving Credit Facility borrowings was 1.21% resulting in $0.4 million of interest expense. Guaranteed Notes due 2028 On December 13, 2022, the Company completed an underwritten offering of $350.0 million aggregate principal amount of its 7.55% Guaranteed Notes due 2028 (the “2028 Notes”). The 2028 Notes were priced at 99.06% of their face amount and have been reflected net of a discount of approximately $3.3 million in the consolidated balance sheet as of December 31, 2022. The Company received approximately $344.6 million of proceeds after the deduction for underwriting discounts and offering expenses. Guaranteed Notes due 2023 On December 20, 2022, the Company used a portion of the net proceeds from the offering of the 2028 Notes to repurchase $295.7 million aggregate principal amount of its outstanding 3.95% guaranteed notes due 2023 (the “2023 Notes”), through a tender offer, together with $4.1 million of accrued and unpaid interest thereon. The Company recognized a $0.4 million loss on early extinguishment of debt related to the total repurchase. On January 20, 2023, the Company completed the redemption of the remaining $54.3 million aggregate principal amount of the 2023 Notes. See Note 21, “Subsequent Events” for further information regarding the redemption. The Company was in compliance with all financial covenants as of December 31, 2022. Certain of the covenants restrict the Company’s ability to obtain alternative sources of capital. As of December 31, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2023 $ 54,301 2024 350,000 2025 — 2026 88,500 2027 700,000 Thereafter 778,610 Total principal payments 1,971,411 Net unamortized premiums/(discounts) 2,934 Net deferred financing costs (9,307) Outstanding indebtedness $ 1,965,038 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 10. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company determined the fair values disclosed below using available market information and discounted cash flow analyses as of December 31, 2022 and 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 December 31, 2022 and 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): December 31, 2022 December 31, 2021 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,549,760 $ 1,411,351 $ 1,502,368 $ 1,588,780 Variable rate debt $ 415,278 $ 386,988 $ 351,218 $ 344,754 Notes receivable (b) $ — $ — $ 44,430 $ 45,230 (a) Net of deferred financing costs of $7.5 million and $5.8 million for unsecured notes payable, $1.8 million and $0.4 million for variable rate debt as of December 31, 2022 and December 31, 2021, respectively. (b) For further detail, refer to Note 5 “Debt and Preferred Equity Investments.” The Company used quoted market prices as of December 31, 2022 and December 31, 2021 to value the unsecured notes payable and, as such, categorized them as Level 2. The inputs utilized to determine the fair value of the Company’s variable rate debt are categorized as Level 3. The fair value of the variable rate debt was determined using a discounted cash flow model that considered borrowing rates available to the Company for loans with similar terms and characteristics. The inputs utilized to determine fair value of the Company's notes receivable are unobservable and, as such, were categorized as Level 3. Fair value was determined using a discounted cash flow model that considered the contractual interest and principal payments discounted at a blended interest rate of the notes receivable. For the Company’s Level 3 financial instruments for which fair value is disclosed, an increase in the discount rate used to determine fair value would result in a decrease to the fair value. Conversely, a decrease in the discount rate would result in an increase to the fair value. Disclosure about the fair value of financial instruments is based upon pertinent information available to management as of December 31, 2022 and December 31, 2021. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts were not comprehensively revalued for purposes of these financial statements since December 31, 2022. Current estimates of fair value may differ from the amounts presented herein. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | 11. DERIVATIVE FINANCIAL INSTRUMENTS Use of Derivative Financial Instruments The Company’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its affiliates may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate that any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks through derivative financial instruments. The Company formally assesses, both at the inception of a hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that a derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company will discontinue hedge accounting prospectively for either the entire hedge or the portion of the hedge that is determined to be ineffective. The related ineffectiveness would be charged to the consolidated statement of operations. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. To comply with the provisions of the accounting standard for fair value measurements and disclosures, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2022 and December 31, 2021. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands). Hedge Product Hedge Type Designation Notional Amount Strike Trade Date Maturity Date Fair value 12/31/2022 12/31/2021 12/31/2022 12/31/2021 Assets Swap Interest Rate Cash Flow (a) $ 250,000 $ — 3.729 % November 23, 2022 June 30, 2027 $ 255 $ — Liabilities Swap Interest Rate Cash Flow (b) $ — $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ — $ (2,461) $ 250,000 $ 250,000 (a) Hedging unsecured variable rate debt. (b) On October 8, 2022, the interest rate hedge contract for this swap expired. 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. Concentration of Credit Risk Concentrations of credit risk arise for the Company when multiple tenants of the Company are engaged in similar business activities, or are located in the same geographic region, or have similar economic features that impact in a similar manner their ability to meet contractual obligations, including those to the Company. The Company regularly monitors its tenant base to assess potential concentrations of credit risk. Management believes the current credit risk portfolio is reasonably well diversified and does not contain an unusual concentration of credit risk. No tenant accounted for 10% or more of the Company’s rents during 2022, 2021 and 2020. |
LIMITED PARTNERS' NONCONTROLLIN
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY | 12. 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 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 $4.9 million and $8.2 million as of December 31, 2022 and December 31, 2021, respectively. Under the applicable accounting guidance, the redemption value of limited partnership units are carried at fair value. The Parent Company believes that the aggregate settlement value of these interests (based on the number of units outstanding and the average closing price of the common shares during the last five business days of the quarter) was approximately $3.2 million and $11.1 million as of December 31, 2022 and December 31, 2021, respectively. |
BENEFICIARIES' EQUITY OF THE PA
BENEFICIARIES' EQUITY OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
BENEFICIARIES' EQUITY OF THE PARENT COMPANY | 13. 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): Year Ended December 31, 2022 2021 2020 Basic Diluted Basic Diluted Basic Diluted Numerator Net income $ 53,992 $ 53,992 $ 12,366 $ 12,366 $ 307,326 $ 307,326 Net income attributable to noncontrolling interests (168) (168) (77) (77) (1,799) (1,799) Nonforfeitable dividends allocated to unvested restricted shareholders (456) (456) (421) (421) (410) (410) Net income attributable to common shareholders $ 53,368 $ 53,368 $ 11,868 $ 11,868 $ 305,117 $ 305,117 Denominator Weighted-average shares outstanding 171,491,369 171,491,369 170,878,185 170,878,185 171,926,079 171,926,079 Contingent securities/Share based compensation — 834,277 — 1,395,055 — 390,997 Weighted-average shares outstanding 171,491,369 172,325,646 170,878,185 172,273,240 171,926,079 172,317,076 Earnings per Common Share: Net income attributable to common shareholders $ 0.31 $ 0.31 $ 0.07 $ 0.07 $ 1.77 $ 1.77 The contingent securities/share based compensation impact is calculated using the treasury stock method and relates to employee awards settled in shares of the Parent Company. The effect of these securities is anti-dilutive for periods that the Parent Company incurs a net loss from continuing operations available to common shareholders and therefore is excluded from the dilutive earnings per share calculation in such periods. Redeemable common limited partnership units totaling 516,467 at December 31, 2022, 823,983 at December 31, 2021 and 981,634 at December 31, 2020, respectively, 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 years ended December 31, 2022, 2021 and 2020, 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 and Preferred Shares On December 6, 2022, the Parent Company declared a distribution of $0.19 per common share, totaling $32.8 million, which was paid on January 19, 2023 to shareholders of record as of January 5, 2023. The Parent Company maintains a common share repurchase program under which the Board of Trustees has authorized the Parent Company to repurchase common shares. On January 3, 2019, the Board of Trustees authorized the repurchase of up to $150.0 million common shares from and after January 3, 2019. During the years ended December 31, 2021 and 2022, no common shares were repurchased by the Company. During the year ended December 31, 2021, the Company issued 226,695 common shares in a private placement to an unaffiliated third party in exchange for the third party's 1% residual ownership interest in One and Two Commerce Square, an unconsolidated joint venture. Of the 20,000,000 preferred shares authorized, none were outstanding as of December 31, 2022 or December 31, 2021. Common Share Repurchases The Parent Company maintains a common share repurchase program under which the Board of Trustees has authorized the Parent Company to repurchase common shares. On January 3, 2019, the Board of Trustees authorized the repurchase of up to $150.0 million common shares from and after January 3, 2019. During the year ended December 31, 2022 and 2021, the Company did not repurchase any common shares. During the year ended December 31, 2020, the Company repurchased and retired 6,248,483 common shares at an average price of $9.60 per share, totaling $60.0 million. Former Continuous Offering Program On January 10, 2017, the Parent Company entered into a continuous offering program (the “Offering Program”), that permitted the Parent Company to sell up to an aggregate of 16,000,000 common shares in at-the-market offerings. There was no activity under the Offering Program during 2021 and 2020. At December 31, 2022, no common shares remained available for issuance under the Offering Program, which terminated on January 10, 2020. |
PARTNERS' EQUITY OF THE PARENT
PARTNERS' EQUITY OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
PARTNERS' EQUITY OF THE PARENT COMPANY | 14. 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): Year Ended December 31, 2022 2021 2020 Basic Diluted Basic Diluted Basic Diluted Numerator Net income $ 53,992 $ 53,992 $ 12,366 $ 12,366 $ 307,326 $ 307,326 Net (income) loss attributable to noncontrolling interests 2 2 3 3 (20) (20) Nonforfeitable dividends allocated to unvested restricted unitholders (456) (456) (421) (421) (410) (410) Net income attributable to common unitholders $ 53,538 $ 53,538 $ 11,948 $ 11,948 $ 306,896 $ 306,896 Denominator Weighted-average units outstanding 172,036,481 172,036,481 171,770,843 171,770,843 172,907,713 172,907,713 Contingent securities/Share based compensation — 834,277 — 1,395,055 — 390,997 Total weighted-average units outstanding 172,036,481 172,870,758 171,770,843 173,165,898 172,907,713 173,298,710 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.31 $ 0.31 $ 0.07 $ 0.07 $ 1.77 $ 1.77 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 years ended December 31, 2022, 2021 and 2020, 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 and Preferred Mirror Units The Operating Partnership issues partnership units to the Parent Company in exchange for the contribution of the net proceeds of any equity security issuance by the Parent Company. The number and terms of such partnership units correspond to the number and terms of the related equity securities issued by the Parent Company. In addition, the Operating Partnership may also issue separate classes of partnership units. Historically, the Operating Partnership has had the following types of partnership units outstanding: (i) Preferred Partnership Units which have been issued to parties other than the Parent Company; (ii) Preferred Mirror Partnership Units which have been issued to the Parent Company; and (iii) Common Partnership Units which include both interests held by the Parent Company and those held by other limited partners. Preferred Mirror Partnership Units In exchange for the proceeds received in corresponding offerings by the Parent Company of preferred shares of beneficial interest, the Operating Partnership has issued to the Parent Company a corresponding amount of Preferred Mirror Partnership Units with terms consistent with that of the preferred securities issued by the Parent Company. No preferred units were outstanding as of December 31, 2022 or December 31, 2021. Common Partnership Units (Redeemable and General) The Operating Partnership has two classes of Common Partnership Units outstanding as of December 31, 2022: (i) Class A Limited Partnership Interest which are held by both the Parent Company and outside third parties and (ii) General Partnership Interests which are held solely by the Parent Company (collectively, the Class A Limited Partnership Interest, and General Partnership Interests are referred to as “Common Partnership Units”). The holders of the Common Partnership Units are entitled to share in cash distributions from, and in profits and losses of, the Operating Partnership, in proportion to their respective percentage interests, subject to preferential distributions on the preferred mirror units and the preferred units. The Common Partnership Units held by the Parent Company (comprised of both General Partnership Units and Class A Limited Partnership Units) are presented as partner’s equity in the consolidated financial statements. Class A Limited Partnership Interest held by parties other than the Parent Company are redeemable at the option of the holder for a like number of common shares of the Parent Company, or cash, or a combination thereof, at the election of the Parent Company. Because the form of settlement of these redemption rights are not within the control of the Operating Partnership, these Common Partnership Units have been excluded from partner’s equity and are presented as redeemable limited partnership units measured at the potential cash redemption value as of the end of the periods presented based on the closing market price of the Parent Company’s common shares at December 31, 2022, 2021 and 2020, which was $6.15, $13.42 and $11.91, respectively. Class A Units of 516,467 as of December 31, 2022, 823,983 as of December 31, 2021, and 981,634 as of December 31, 2020, respectively, were outstanding and owned by outside limited partners of the Operating Partnership. On December 6, 2022, the Operating Partnership declared a distribution of $0.19 per common partnership unit, totaling $32.8 million, which was paid on January 19, 2023 to unitholders of record as of January 5, 2023. During the year ended December 31, 2021, the Operating Partnership issued 226,695 common partnership units to the Parent Company in exchange for a 1% residual ownership interest in One and Two Commerce Square, an unconsolidated joint venture, which was acquired from an unaffiliated third party in exchange for an equal number of common shares of the Parent Company. Common Unit Repurchases 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 years ended December 31, 2022 and December 31, 2021, the Company did not repurchase any units. During the year ended December 31, 2020 the Company repurchased and retired 6,248,483 common units at an average price of $9.60 per unit, totaling $60.0 million. During the year ended December 31, 2019, the Company Repurchased 1,337,169 common units at an average price of $12.92 per unit, totaling $17.3 million. The common units repurchased were retired and, as a result, were accounted for in accordance with Maryland law, which does not contemplate treasury stock. The repurchases were recorded as a reduction of common units (at $0.01 par value per unit) and a decrease to General Partnership Capital. |
SHARE BASED COMPENSATION, 401(K
SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION | 15. SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION 401(k) Plan The Company sponsors a 401(k) defined contribution plan for its employees. Each employee may contribute up to 100% of annual compensation, subject to specific limitations under the Internal Revenue Code. At its discretion, the Company can make matching contributions equal to a percentage of the employee’s elective contribution and profit sharing contributions. The Company funds its 401(k) contributions annually and plan participants must be employed as of December 31 in order to receive employer contributions, except for employees eligible for qualifying retirement, as defined under the Internal Revenue Code. The Company contributions were $0.4 million, $0.4 million, and $0.5 million in 2022, 2021, and 2020, respectively. Restricted Share Rights Awards As of December 31, 2022, 553,894 restricted share rights (“Restricted Share Rights”) were outstanding under the Company's long term equity incentive plan. These Restricted Share Rights vest over one The following table summarizes the Company’s Restricted Share Rights activity during the year-ended December 31, 2022: Shares Weighted Average Grant Date Fair Value Non-vested at January 1, 2022 474,978 $ 13.51 Granted 306,555 $ 13.30 Vested (219,765) $ 13.94 Forfeited (7,874) $ 13.45 Non-vested at December 31, 2022 553,894 $ 13.22 On March 3, 2022, the Compensation Committee of the Parent Company’s Board of Trustees awarded to officers of the Company an aggregate of 258,427 Restricted Share Rights, which vest over three years from the grant date. Each Restricted Share Right entitles the holder to one common share upon settlement. The Parent Company pays dividend equivalents on the Restricted Share Rights prior to the settlement date. Vesting and/or settlement would accelerate if the recipient of the award were to die, become disabled or, in the case of certain of such Restricted Share Rights, retire in a qualifying retirement prior to the vesting or settlement date. Qualifying retirement generally means the recipient’s voluntary termination of employment after reaching at least age 57 and accumulating at least 15 years of service with the Company. In addition, vesting would also accelerate if the Parent Company were to undergo a change of control and, on or before the first anniversary of the change of control, the recipient’s employment were to cease due to a termination without cause or resignation with good reason. The Restricted Share Rights granted in 2022, 2021, and 2020 to certain senior executives include an “outperformance feature” whereby additional shares may be earned, up to 200% of the shares subject to the basic award, based on the Company’s achievement of earnings-based targets and development, or investment, based targets during a three-year performance period with an additional 366 days of service generally required to fully vest. In addition to the basic award, up to an aggregate of 406,179, 388,840, and 316,236 shares may be awarded under the outperformance feature for the 2022, 2021, and 2020 awards, respectively, to those senior officers whose Restricted Share Rights awards include the “outperformance feature.” As of December 31, 2022, the Company has not recognized any compensation expense related to the outperformance feature for the 2020-2021 awards and has recognized $0.1 million related to the outperformance feature for the 2022 award. The Company will continue to evaluate progression towards achievement of the performance metrics on a quarterly basis and recognize compensation expense for the outperformance feature of these awards should it be determined that achievement of these metrics is probable. In addition, on March 3, 2022, the Compensation Committee awarded non-officer employees an aggregate of 48,128 Restricted Share Rights that generally vest in three equal annual installments. Vesting of these awards is subject to acceleration upon death, disability or termination without cause within one year following a change of control. In accordance with the accounting standard for share-based compensation, the Company amortizes share-based compensation costs through the qualifying retirement dates for those grantees who meet the conditions for qualifying retirement during the scheduled vesting period and whose award agreements provide for vesting upon a qualifying retirement. Restricted Performance Share Units Plan The Compensation Committee of the Parent Company’s Board of Trustees has granted performance share-based awards (referred to as Restricted Performance Share Units, or RPSUs) to officers of the Parent Company. The RPSUs are settled in common shares, with the number of common shares issuable in settlement determined based on the Company’s total shareholder return over specified measurement periods compared to total shareholder returns of comparative groups over the measurement periods. The table below presents certain information as to unvested RPSU awards. RPSU Grant Date 3/5/2020 3/5/2021 3/3/2022 Total (Amounts below in shares, unless otherwise noted) Non-vested at January 1, 2022 314,055 374,161 — 688,216 Granted — — 516,852 516,852 Units Cancelled (2,076) (2,922) (3,814) (8,812) Non-vested at December 31, 2022 311,979 371,239 513,038 1,196,256 Measurement Period Commencement Date 1/1/2020 1/1/2021 1/1/2022 Measurement Period End Date 12/31/2022 12/31/2023 12/31/2024 Granted 319,600 380,957 516,852 Fair Value of Units on Grant Date (in thousands) $ 5,389 $ 6,389 $ 6,872 The Company values each RPSU on its grant date using a Monte Carlo simulation. The fair values of each award are being amortized over the three year performance period. For the 2020 and 2021 awards, dividend equivalents are credited as additional RPSUs during the performance period, subject to the same terms and conditions as the original RPSUs. The performance period will be abbreviated and the determination and delivery of earned shares will be accelerated in the event of a change in control or if the recipient of the award were to die, become disabled or retire in a qualifying retirement prior to the end of the otherwise applicable three year performance period; provided that, in the case of qualifying retirement for the March 2022, 2021 and 2020 grants, the number of shares deliverable will be pro-rated based on the portion of the performance period actually worked before retirement. In accordance with the accounting standard for share-based compensation, the Company amortizes stock-based compensation costs for the February 2019 grant through the qualifying retirement date for those executives who meet the conditions for qualifying retirement during the scheduled vesting period. For the year ended December 31, 2022, the Company recognized amortization of the 2022, 2021 and 2020 RPSU awards of $6.2 million, of which $1.1 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the year ended December 31, 2021, amortization for the 2021, 2020 and 2019 RPSU awards was $4.3 million, of which $0.5 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. For the year ended December 31, 2020, amortization for the 2020, 2019, and 2018 RPSU awards was $3.0 million, of which $0.4 million was capitalized consistent with the Company’s policies for capitalizing eligible portions of employee compensation. The remaining compensation expense to be recognized with respect to the non-vested RPSUs at December 31, 2022 was approximately $7.5 million and is expected to be recognized over a weighted average remaining vesting period of 1.3 years. The Company issued 277,061 common shares on February 1, 2022 in settlement of RPSUs that had been awarded on February 21, 2019 (with a three year measurement period ended December 31, 2021). Holders of these RPSUs also received a cash dividend equivalent payment of $0.19 per share for these common shares on January 19, 2022. Employee Share Purchase Plan The Parent Company’s shareholders approved the 2007 Non-Qualified Employee Share Purchase Plan (the “ESPP”), which is intended to provide eligible employees with a convenient means to purchase common shares of the Parent Company through payroll deductions and voluntary cash purchases at an amount equal to 85% of the average closing price per share for a specified period. Under the plan document, the maximum participant contribution for the 2022 plan year is limited to the lesser of 20% of compensation or $50,000. The ESPP allows the Parent Company to make open market purchases, which reflects all purchases made under the plan to date. In addition, the number of shares separately reserved for issuance under the ESPP is 1.25 million . E mployees made purchases under the ESPP of $0.6 million during the year ended December 31, 2022, $0.6 million during the year ended December 31, 2021 and $0.5 million during the year ended December 31, 2020. The Company recognized $0.02 million of compensation expense related to the ESPP during the year ended December 31, 2022 and $0.1 million each of the years ended December 31, 2021, and 2020. Compensation expense represents the 15% discount on the purchase price. The Board of Trustees of the Parent Company may terminate the ESPP at its sole discretion at any time. Deferred Compensation In January 2005, the Parent Company adopted a Deferred Compensation Plan (the “Plan”) that allows trustees and certain key employees to defer compensation voluntarily. Compensation expense is recorded for the deferred compensation and a related liability is recognized. Participants may elect designated benchmark investment options for the notional investment of their deferred compensation. The deferred compensation obligation is adjusted for deemed income or loss related to the investments selected. At the time the participants defer compensation, the Company records a liability, which is included in the Company’s consolidated balance sheets. The liability is adjusted for changes in the market value of the participant-selected investments at the end of each accounting period, and the impact of adjusting the liability is recorded as an increase or decrease to compensation cost. The Company has purchased mutual funds which can be utilized as a funding source for the Company’s obligations under the Plan. Participants in the Plan have no interest in any assets set aside by the Company to meet its obligations under the Plan. For each of the years ended December 31, 2022, December 31, 2021 and December 31, 2020, the Company recorded a nominal amount of deferred compensation costs, net of investments in the company-owned policies and mutual funds. Participants in the Plan may elect to have all, or a portion of their deferred compensation invested in the Company’s common shares. The Company holds these shares in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. The Plan does not permit diversification of a participant’s deferral allocated to the Company common shares and deferrals allocated to Company common shares can only be settled with a fixed number of shares. In accordance with the accounting standard for deferred compensation arrangements where amounts earned are held in a rabbi trust and invested, the deferred compensation obligation associated with the Company’s common shares is classified as a component of shareholder’s equity and the related shares are treated as shares to be issued and are included in total shares outstanding. At both December 31, 2022 and 2021, 1.2 million of such shares were included in total shares outstanding, respectively. Subsequent changes in the fair value of the common shares are not reflected in operations or shareholders’ equity of the Company. |
DISTRIBUTIONS
DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Distributions [Abstract] | |
DISTRIBUTIONS | 16. DISTRIBUTIONS The following table provides the tax characteristics of the 2022, 2021 and 2020 distributions paid: Years ended December 31, 2022 2021 2020 (in thousands, except per share amounts) Common Share Distributions: Ordinary income $ 0.47 $ 0.64 $ 0.41 Capital gain 0.29 0.01 0.35 Non-taxable distributions — 0.11 — Distributions per share $ 0.76 $ 0.76 $ 0.76 Percentage classified as ordinary income 62.10 % 83.90 % 53.90 % Percentage classified as capital gain 37.90 % 1.20 % 46.10 % Percentage classified as non-taxable distribution — % 14.90 % — % |
INCOME TAXES AND TAX CREDIT TRA
INCOME TAXES AND TAX CREDIT TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES AND TAX CREDIT TRANSACTIONS | 17. INCOME TAXES AND TAX CREDIT TRANSACTIONS Income Tax Provision/Benefit The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. As of December 31, 2022 and 2021 there were no deferred tax assets included within “Other assets” in the consolidated balance sheets. The Company had no accruals for tax uncertainties as of December 31, 2022 and December 31, 2021. For the years ended December 31, 2022 and 2021, there was no deferred income tax expense and nominal current income tax expense. For the year ended December 31, 2020, there was no deferred income tax expense and $0.2 million of current income tax benefit. These amounts are included in “Income tax (provision) benefit” in the consolidated statements of operations. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 18. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table details the components of accumulated other comprehensive income (loss) of the Parent Company and the Operating Partnership as of and for the three years ended December 31, 2022 (in thousands): Parent Company Cash Flow Hedges Balance at January 1, 2020 $ (2,370) Change in fair market value during year (5,972) Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests 29 Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2020 $ (7,561) Change in fair market value during year 4,817 Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests (28) Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2021 $ (2,020) Change in fair market value during year 5,371 Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests (18) Amortization of interest rate contracts reclassified from comprehensive income to interest expense 564 Balance at December 31, 2022 $ 3,897 Operating Partnership Cash Flow Hedges Balance at January 1, 2020 $ (2,715) Change in fair market value during year (5,972) Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2020 $ (7,935) Change in fair market value during year 4,817 Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2021 $ (2,366) Change in fair market value during year 5,371 Amortization of interest rate contracts reclassified from comprehensive income to interest expense 564 Balance at December 31, 2022 $ 3,569 Over time, the unrealized gains and losses held in Accumulated Other Comprehensive Income (“AOCI”) will be reclassified to interest expense when the related hedged items are recognized in earnings. The current balance held in AOCI is expected |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 19. SEGMENT INFORMATION As of December 31, 2022, the Company owns and manages properties within five segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Other segment includes properties located in Camden County, New Jersey and New Castle County, Delaware. In addition to the five segments, the corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress is transferred to operating properties by region upon completion of the associated construction or project. The following tables provide selected asset information and results of operations of the Company’s reportable segments (in thousands): Real estate investments, at cost: December 31, 2022 December 31, 2021 Philadelphia CBD $ 1,517,801 $ 1,460,510 Pennsylvania Suburbs 878,546 866,223 Austin, Texas 851,835 778,145 Metropolitan Washington, D.C. 282,458 280,921 Other 86,600 86,803 Operating Properties $ 3,617,240 $ 3,472,602 Corporate Right of use asset - operating leases, net $ 19,664 $ 20,313 Construction-in-progress $ 218,869 $ 277,237 Land held for development $ 76,499 $ 114,604 Prepaid leasehold interests in land held for development, net $ 35,576 $ 27,762 . Net operating income: Year Ended December 31, 2022 2021 2020 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income (loss) Philadelphia CBD $ 220,876 $ (79,827) $ 141,049 $ 207,858 $ (73,695) $ 134,163 $ 232,028 $ (82,505) $ 149,523 Pennsylvania Suburbs 128,940 (41,814) 87,126 124,566 (40,011) 84,555 141,613 (46,281) 95,332 Austin, Texas 96,328 (41,141) 55,187 101,680 (39,374) 62,306 102,982 (39,759) 63,223 Metropolitan Washington, D.C. 21,900 (12,539) 9,361 19,865 (15,386) 4,479 40,223 (20,791) 19,432 Other 14,710 (8,626) 6,084 14,015 (9,840) 4,175 13,469 (9,815) 3,654 Corporate 23,346 (10,454) 12,892 18,835 (10,005) 8,830 4,537 (6,305) (1,768) Operating properties $ 506,100 $ (194,401) $ 311,699 $ 486,819 $ (188,311) $ 298,508 $ 534,852 $ (205,456) $ 329,396 (a) Includes property operating expense, real estate taxes and third party management expense. Unconsolidated real estate ventures: Investment in real estate ventures, at equity Equity in income (loss) of real estate venture As of Year ended December 31, December 31, 2022 December 31, 2021 2022 2021 2020 Philadelphia CBD $ 387,301 $ 317,959 $ (11,764) $ (15,191) $ (9,090) Metropolitan Washington, D.C. 83,903 85,867 (2,324) (3,755) (3,019) Mid-Atlantic Office JV 31,005 31,680 412 932 96 MAP Venture (35,411) (24,396) (8,340) (8,683) (6,571) Austin, Texas 65,426 — — — — Total $ 532,224 $ 411,110 $ (22,016) $ (26,697) $ (18,584) 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): Year Ended December 31, 2022 2021 2020 Net income $ 53,992 $ 12,366 $ 307,326 Plus: Interest expense 68,764 62,617 73,911 Interest expense - amortization of deferred financing costs 3,091 2,836 2,904 Depreciation and amortization 177,984 178,105 188,283 General and administrative expenses 35,006 30,153 30,288 Equity in loss of unconsolidated real estate ventures 22,016 26,697 18,584 Provision for impairment 4,663 — — Loss on early extinguishment of debt 435 — — Less: Interest and investment income 1,905 8,295 1,939 Income tax (provision) benefit (55) (47) 224 Net gain on disposition of real estate 17,677 142 289,461 Net gain on sale of undepreciated real estate 8,007 2,903 201 Net gain on real estate venture transactions 26,718 2,973 75 Consolidated net operating income $ 311,699 $ 298,508 $ 329,396 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is involved from time to time in litigation on various matters, including disputes with tenants, disputes with vendors, employee disputes and disputes arising out of agreements to purchase or sell properties or joint ventures or disputes relating to state and local taxes. 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 December 31, 2022, the Company's unconsolidated real estate ventures had aggregate indebtedness of $1,204.8 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. The Company has also provided cost overrun and completion guarantees, as well as customary environmental indemnities, in favor of the joint venture partners, for the One Uptown Ventures. See also Note 4, “Investment in Unconsolidated Real Estate Ventures,” for information on the guarantees in favor of the lenders on the construction loans for the One Uptown Ventures. 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. During the year ended December 31, 2021, the Company has 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 has 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 year ended December 31, 2022, the Company recognized a $0.8 million reduction of the previously estimated restoration costs and also received $2.8 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 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. See Note 4, “Investment in Unconsolidated Real Estate Ventures” for further information. In connection with the Schuylkill Yards Project, the Company entered into a neighborhood engagement program and, as of December 31, 2022, had $6.6 million of future fixed contractual obligations. The Company also committed to fund additional contributions under the program. As of December 31, 2022, the Company estimates that these additional contributions, which are not fixed under the terms of agreement, will be $2.2 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 $7.2 million has been contributed by the Company as of December 31, 2022. As part of the Company’s September 2004 acquisition of a portfolio of properties (which the Company refers to as the “TRC acquisition”), the Company acquired its interest in Two Logan Square, a 708,844 square foot office building in Philadelphia, Pennsylvania primarily through its ownership of a second and third mortgage secured by this property. This property is consolidated, as the borrower is a variable interest entity and the Company, through its ownership of the second and third mortgages, is the primary beneficiary. On October 21, 2020, the Company also acquired the $79.8 million first mortgage on the property from the third-party mortgage lender pursuant to an agreement with certain of the former owners. Under the agreement, the Company has agreed to not take title to Two Logan until the earlier of June 2026 or the occurrence of certain events related to the ownership interests of certain former owners. If the Company were to sell the restricted property before the expiration of the restricted period in a non-exempt transaction, the Company may be required to make significant payments to certain of the former owners of Two Logan Square on account of tax liabilities attributed to them. Additionally, the Company will be required to pay these certain former owners an amount estimated at approximately $0.6 million to redeem their residual interest in the fee owner of this property. The $0.6 million payment is included within “Other liabilities” on the consolidated balance sheets. The Company invests in its properties and regularly incurs capital expenditures in the ordinary course of business to maintain the properties. The Company believes that such expenditures enhance its competitiveness. The Company also enters into construction, utility and service contracts in the ordinary course of business which may extend beyond one year. These contracts typically provide for cancellation with insignificant or no cancellation penalties. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS On January 19, 2023, seven indirect wholly-owned subsidiaries of the Company entered into a term loan agreement secured by seven operating properties in the aggregate principal amount of $245.0 million (the “Secured Facility”). The Secured Facility has a scheduled maturity date of February 6, 2028 and may be prepaid in full on or after March 6, 2025, subject to a prepayment premium, and may be prepaid in full on or after August 6, 2027 without any prepayment premium. The Secured Facility bears interest at 5.875% per year through the maturity date and is interest-only (payable monthly) through the maturity date. The Company used the net proceeds from the term loan for general corporate purposes, including to reduce outstanding borrowings under the Company’s unsecured revolving credit facility. On January 20, 2023, the Company redeemed in full its then outstanding 2023 Notes. The redemption price of the 2023 Notes was approximately $55.2 million (approximately $54.3 million in principal and approximately $0.92 million of accrued and unpaid interest). The aggregate redemption price of the 2023 Notes was paid by the Company from available cash balances. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands) Description Balance at Beginning of Year Additions Deductions (1) Balance at End of Year Allowance for doubtful accounts: December 31, 2022 $ 4,133 $ — $ 186 $ 3,947 December 31, 2021 $ 5,086 $ — $ 953 $ 4,133 December 31, 2020 $ 7,975 $ — $ 2,889 $ 5,086 |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Real Estate and Accumulated Depreciation | BRANDYWINE REALTY TRUST AND BRANDYWINE OPERATING PARTNERSHIP, L.P. Schedule III Real Estate and Accumulated Depreciation — December 31, 2022 (in thousands) Initial Cost Gross Amount Which Carried Property Name City State Land Building & Improvements Net Improvements (Retirements) Since Acquisition Land Building & Improvements Total (a) Accumulated Depreciation at December 31, 2022 (b) Year of Construction Year Acquired Depreciable Life PENNSYLVANIA SUBURBS Six Tower Bridge (181 Washington Street) Conshohocken PA $ 6,927 $ 14,722 $ 1,176 $ 6,237 $ 16,588 $ 22,825 $ 4,604 1999 2013 (c) 426 West Lancaster Avenue Devon PA 1,689 6,756 9,405 1,686 16,164 17,850 2,727 1990 1998 (c) 640 Freedom Business Center (d) King Of Prussia PA 1,015 20,098 4,603 332 25,384 25,716 16,544 1991 1998 (c) 620 Freedom Business Center (d) King Of Prussia PA 666 13,118 2,372 217 15,939 16,156 10,154 1986 1998 (c) 1000 First Avenue King Of Prussia PA — 13,708 2,971 — 16,679 16,679 12,521 1980 1998 (c) 1060 First Avenue King Of Prussia PA — 13,665 3,979 — 17,644 17,644 12,989 1987 1998 (c) 630 Freedom Business Center Drive (d) King Of Prussia PA 666 13,251 2,864 219 16,562 16,781 10,946 1989 1998 (c) 1020 First Avenue King Of Prussia PA — 10,744 4,306 — 15,050 15,050 11,050 1984 1998 (c) 1040 First Avenue King Of Prussia PA — 14,142 4,915 — 19,057 19,057 14,165 1985 1998 (c) 610 Freedom Business Center Drive (d) King Of Prussia PA 485 9,602 2,289 159 12,217 12,376 8,256 1985 1998 (c) 650 Park Avenue King Of Prussia PA 1,916 4,378 (4,378) 1,916 — 1,916 — 1968 1998 (c) 600 Park Avenue King Of Prussia PA 1,012 4,048 50 1,012 4,098 5,110 2,660 1964 1998 (c) 933 First Avenue King Of Prussia PA 3,127 20,794 (1,125) 3,127 19,669 22,796 4,823 2017 N/A (c) 500 North Gulph Road King Of Prussia PA 1,303 5,201 21,471 1,303 26,672 27,975 4,690 1979 1996 (c) 401 Plymouth Road Plymouth Meeting PA 6,199 16,131 14,515 6,199 30,646 36,845 15,527 2001 2000 (c) Metroplex (4000 Chemical Road) Plymouth Meeting PA 4,373 24,546 5,554 4,373 30,100 34,473 9,860 2007 2001 (c) 610 West Germantown Pike Plymouth Meeting PA 3,651 14,514 5,461 3,651 19,975 23,626 10,440 1987 2002 (c) 600 West Germantown Pike Plymouth Meeting PA 3,652 15,288 4,035 3,652 19,323 22,975 9,682 1986 2002 (c) 630 West Germantown Pike Plymouth Meeting PA 3,558 14,743 3,169 3,558 17,912 21,470 9,015 1988 2002 (c) 620 West Germantown Pike Plymouth Meeting PA 3,572 14,435 4,131 3,572 18,566 22,138 8,409 1990 2002 (c) 660 West Germantown Pike Plymouth Meeting PA 3,694 5,487 19,502 5,405 23,278 28,683 8,467 1987 2012 (c) 351 Plymouth Road Plymouth Meeting PA 1,043 555 — 1,043 555 1,598 246 N/A 2000 (c) 150 Radnor Chester Road Radnor PA 11,925 36,986 21,691 11,897 58,705 70,602 26,556 1983 2004 (c) One Radnor Corporate Center Radnor PA 7,323 28,613 14,397 7,323 43,010 50,333 27,920 1998 2004 (c) 201 King of Prussia Road Radnor PA 8,956 29,811 4,196 8,949 34,014 42,963 22,515 2001 2004 (c) 555 Lancaster Avenue Radnor PA 8,014 16,508 10,772 8,609 26,685 35,294 9,722 1973 2004 (c) Four Radnor Corporate Center Radnor PA 5,406 21,390 10,499 5,705 31,590 37,295 18,534 1995 2004 (c) Five Radnor Corporate Center Radnor PA 6,506 25,525 9,755 6,578 35,208 41,786 16,306 1998 2004 (c) Three Radnor Corporate Center Radnor PA 4,773 17,961 1,788 4,791 19,731 24,522 11,768 1998 2004 (c) Two Radnor Corporate Center Radnor PA 3,937 15,484 2,552 3,942 18,031 21,973 11,383 1998 2004 (c) 130 Radnor Chester Road Radnor PA 2,573 8,338 (258) 2,567 8,086 10,653 4,099 1983 2004 (c) 170 Radnor Chester Road Radnor PA 2,514 8,147 2,008 2,509 10,160 12,669 5,366 1983 2004 (c) 200 Radnor Chester Road Radnor PA 3,366 — 3,740 3,366 3,740 7,106 1,137 2014 2005 (c) 101 West Elm Street W. Conshohocken PA 6,251 25,209 2,846 6,251 28,055 34,306 12,533 1999 2005 (c) 1 West Elm Street W. Conshohocken PA 3,557 14,249 8,203 3,557 22,452 26,009 7,302 1999 2005 (c) 250 King of Prussia Road (e) (i) Radnor PA — 20,566 12,733 976 32,323 33,299 626 N/A 2022 (c) Initial Cost Gross Amount Which Carried December 31, 2022 Property Name City State Land Building & Improvements Net Improvements (Retirements) Since Acquisition Land Building & Improvements Total (a) Accumulated Depreciation at December 31, 2022 (b) Year of Construction Year Acquired Depreciable Life PHILADELPHIA CBD Cira Centre (2929 Arch Street) Philadelphia PA — 208,570 23,843 12,586 219,827 232,413 73,510 2005 N/A (c) Three Logan Square (1717 Arch Street) Philadelphia PA — 98,188 86,126 25,195 159,119 184,314 61,247 1990 2010 (c) One Logan Square (130 North 18th Street) Philadelphia PA 14,496 107,736 21,614 14,473 129,373 143,846 70,363 1998 2004 (c) Two Logan Square (100 North 18th Street) Philadelphia PA 16,066 100,255 34,198 16,066 134,453 150,519 61,597 1988 2004 (c) Cira Centre South Garage (129 South 30th Street) (d) Philadelphia PA — 76,008 26,970 6,638 96,340 102,978 27,789 2010 N/A (c) 1900 Market Street Philadelphia PA 7,768 17,263 61,760 7,768 79,023 86,791 30,016 1981 2012 (c) 3020 Market Street Philadelphia PA — 21,417 7,442 — 28,859 28,859 13,904 1959 2011 (c) 618-634 Market Street Philadelphia PA 13,365 5,791 5,180 13,365 10,971 24,336 7,222 1966 2015 (c) FMC Tower at Cira Centre South (2929 Walnut Street) Philadelphia PA — 400,294 10,689 — 410,983 410,983 85,826 2016 N/A (c) 2100 Market Street Philadelphia PA 18,827 — 6,292 18,854 6,265 25,119 2,280 N/A 2015 (c) 1505-11 Race Street Philadelphia PA 3,662 6,061 8 3,670 6,061 9,731 328 1922 2020 (c) 3000 Market Street (f) Philadelphia PA 18,924 13,080 17,349 18,924 30,429 49,353 2,608 1937 2017 (c) The Bulletin Building (3025 Market Street) (f) Philadelphia PA — 24,377 44,081 — 68,458 68,458 11,490 1953 2017 (c) 3001-3003 JFK Boulevard (g) Philadelphia PA — — 111 — 111 111 32 N/A 2018 N/A METROPOLITAN WASHINGTON, D.C. 6600 Rockledge Drive Bethesda MD — 37,421 7,672 — 45,093 45,093 17,099 1981 2006 (c) 1676 International Drive McLean VA 18,437 97,538 37,113 18,785 134,303 153,088 35,718 1999 2006 (c) 8260 Greensboro Drive McLean VA 7,952 33,964 8,645 8,102 42,459 50,561 14,217 1980 2006 (c) 8521 Leesburg Pike Vienna VA 4,316 30,885 (1,511) 3,587 30,103 33,690 12,032 1984 2006 (c) Dabney Westwood Richmond VA 1,732 — 3,690 819 4,603 5,422 185 NA 1998 (c) AUSTIN, TX 401-405 Colorado Street (h) (i) Austin TX — 100,448 564 — 101,012 101,012 2,728 2022 N/A (c) 11501 Burnet Road - Building 1 Austin TX 3,755 22,702 4 3,755 22,706 26,461 8,876 1991 2015 (c) 11501 Burnet Road - Building 2 Austin TX 2,732 16,305 1,473 2,732 17,778 20,510 7,422 1991 2015 (c) 11501 Burnet Road - Building 3 Austin TX 3,688 22,348 6,421 3,688 28,769 32,457 9,372 1991 2015 (c) 11501 Burnet Road - Building 4 Austin TX 2,614 15,740 3 2,614 15,743 18,357 6,153 1991 2015 (c) 11501 Burnet Road - Building 5 Austin TX 3,689 22,354 4 3,689 22,358 26,047 8,740 1991 2015 (c) 11501 Burnet Road - Building 6 Austin TX 2,676 15,972 13,855 2,676 29,827 32,503 12,555 1991 2015 (c) 11501 Burnet Road - Building 8 Austin TX 1,400 7,422 1,776 1,400 9,198 10,598 3,594 1991 2015 (c) 11501 Burnet Road - Parking Garage Austin TX — 19,826 1,538 — 21,364 21,364 8,740 1991 2015 (c) Four Points Centre 3 (11120 Four Points Drive) Austin TX 1,140 — 40,322 1,141 40,321 41,462 6,849 2019 2013 (c) One Barton Skyway (1501 South MoPac Expressway) Austin TX 10,496 47,670 7,970 10,495 55,641 66,136 6,565 1999 2018 (c) Two Barton Skyway (1601 South MoPac Expressway) Austin TX 10,849 53,868 3,889 10,848 57,758 68,606 7,271 2000 2018 (c) Three Barton Skyway (1221 South MoPac Expressway) Austin TX 10,374 47,624 1,027 10,373 48,652 59,025 5,158 2001 2018 (c) Four Barton Skyway (1301 South MoPac Expressway) Austin TX 13,301 57,041 7,611 13,300 64,653 77,953 7,096 2001 2018 (c) Initial Cost Gross Amount Which Carried December 31, 2022 Property Name City State Land Building & Improvements Net Improvements (Retirements) Since Acquisition Land Building & Improvements Total (a) Accumulated Depreciation at December 31, 2022 (b) Year of Construction Year Acquired Depreciable Life Four Points Centre (11305 Four Points Drive) Austin TX 7,800 43,581 4,515 7,800 48,096 55,896 6,275 2008 2018 (c) River Place - Building 1 (6500 River Place Boulevard) Austin TX 2,004 17,680 562 2,004 18,242 20,246 2,189 2000 2018 (c) River Place - Building 2 (6500 River Place Boulevard) Austin TX 3,137 29,254 806 3,137 30,060 33,197 3,432 2000 2018 (c) River Place - Building 3 (6500 River Place Boulevard) Austin TX 3,064 26,705 447 3,064 27,152 30,216 2,931 2000 2018 (c) River Place - Building 4 (6500 River Place Boulevard Austin TX 2,273 18,617 1,716 2,273 20,333 22,606 2,903 2000 2018 (c) River Place - Building 5 (6500 River Place Boulevard) Austin TX 1,752 14,315 692 1,752 15,007 16,759 1,655 2001 2018 (c) River Place - Building 6 (6500 River Place Boulevard) Austin TX 1,598 12,945 703 1,598 13,648 15,246 1,490 2001 2018 (c) River Place - Building 7 (6500 River Place Boulevard) Austin TX 1,801 16,486 1,208 1,801 17,694 19,495 2,468 2002 2018 (c) Quarry Lake II (4516 Seton Center Parkway) Austin TX 3,970 30,546 1,174 3,867 31,823 35,690 3,611 1998 2018 (c) OTHER Main Street - Plaza 1000 Voorhees NJ 2,732 10,942 284 2,732 11,226 13,958 11,054 1988 1997 (c) Main Street - Piazza Voorhees NJ 696 2,802 3,586 704 6,380 7,084 4,547 1990 1997 (c) Main Street - Promenade Voorhees NJ 532 2,052 311 532 2,363 2,895 1,561 1988 1997 (c) 920 North King Street Wilmington DE 6,141 21,140 7,108 6,141 28,248 34,389 16,427 1989 2004 (c) 300 Delaware Avenue Wilmington DE 6,369 13,739 2,750 6,369 16,489 22,858 10,393 1989 2004 (c) Total: $ 359,777 $ 2,527,685 $ 729,778 $ 403,998 $ 3,213,242 $ 3,617,240 $ 1,063,060 The following table reconciles the real estate investments from January 1, 2020 to December 31, 2022 (in thousands): 2022 2021 2020 Balance at beginning of year $ 3,472,602 $ 3,474,109 $ 4,006,459 Additions: Acquisitions — — 9,722 Capital expenditures and assets placed into service 212,874 134,931 113,221 Less: Dispositions/impairments/placed into redevelopment (32,951) (82,247) (619,086) Retirements (35,285) (54,191) (36,207) Balance at end of year $ 3,617,240 $ 3,472,602 $ 3,474,109 Per consolidated balance sheet $ 3,617,240 $ 3,472,602 $ 3,474,109 The aggregate cost for federal income tax purposes is $3.2 billion as of December 31, 2022. (b) Reconciliation of Accumulated Depreciation: The following table reconciles the accumulated depreciation on real estate investments from January 1, 2020 to December 31, 2022 (in thousands): 2022 2021 2020 Balance at beginning of year $ 957,450 $ 896,561 $ 973,318 Additions: Depreciation expense 147,735 136,171 138,822 Less: Dispositions/impairments/placed into redevelopment (7,341) (24,440) (182,526) Retirements (34,784) (50,842) (33,053) Balance at end of year $ 1,063,060 $ 957,450 $ 896,561 Per consolidated balance sheet $ 1,063,060 $ 957,450 $ 896,561 (c) Depreciation of the buildings and improvements are calculated over lives ranging from the life of the lease to 55 years. (d) Land value represents unamortized prepaid ground lease. (e) 250 King of Prussia Road was partially placed into service in 2022. (f) Reflects original construction date. Significant improvements were made to 3000 Market Street in 1988 and to The Bulletin Building in 2012. (g) Represent leasehold interests in land parcels acquired through prepaid 99-year ground leases. Development has not yet commenced on the parcel. Building and improvements represent costs related to parking operations. (h) 401-405 Colorado Street was partially placed into service in 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Company consolidates variable interest entities (“VIEs”) in which it is considered to be the primary beneficiary. VIEs are entities in which the equity investors do not have sufficient equity at risk to finance their endeavors without additional financial support or that the holders of the equity investment at risk do not have a controlling financial interest. The primary beneficiary is defined by the entity having both of the following characteristics: (i) the power to direct those matters that most significantly impact the activities of the VIE and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. For entities that the Company has the obligations to fund losses, its maximum exposure to loss is not limited to the carrying amount of its investments. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Operating Properties | Operating Properties Operating properties are carried at historical cost less accumulated depreciation and impairment losses. The value of operating properties reflects their purchase price or development cost. Acquisition costs related to business combinations are expensed as incurred, whereas the costs related to asset acquisitions are capitalized as incurred. Costs incurred for the renovation and betterment of an operating property are capitalized to the Company’s investment in that property. Ordinary repairs and maintenance are expensed as incurred. |
Purchase Price Allocation | Purchase Price Allocation For acquisitions of real estate or in-substance real estate that are accounted for as business combinations, we recognize the assets acquired (including the intangible value of acquired above- or below-market leases, acquired in-place leases and tenant relationship values), liabilities assumed, noncontrolling interests, and previously existing ownership interests at fair value as of the acquisition date. Any excess (deficit) of the consideration transferred relative to the fair value of the net assets acquired is accounted for as goodwill (bargain purchase gain). Acquisition costs related to business combinations are expensed as incurred. Acquisitions of real estate and in-substance real estate that do not meet the definition of a business are accounted for as asset acquisitions. The Company generally expects that acquisitions of real estate or in-substance real estate will not meet the definition of business and therefore are accounted for as asset acquisitions, unless specifically noted otherwise. The accounting model for asset acquisitions is similar to the accounting model for business combinations except that the acquisition consideration (including acquisition costs) is allocated to the individual assets acquired and liabilities assumed on a relative fair value basis. As a result, asset acquisitions do not result in recognition of goodwill or a bargain purchase gain. Additionally, because the accounting model for asset acquisitions is a cost accumulation model, preexisting interests in the acquired assets, if any, are not remeasured to fair value but continue to be accounted for at their historical cost. Direct acquisition costs are capitalized if an asset acquisition is probable. If we determine that an asset acquisition is no longer probable, no new costs are capitalized and all capitalized costs that are not recoverable are written off. The purchase price is allocated to the acquired assets and assumed liabilities, including land and buildings, as if vacant based on highest and best use for the acquired assets. The Company assesses and considers fair value of the operating properties based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions. The Company allocates the purchase price of properties considered to be business combinations and asset acquisitions to net tangible and identified intangible assets acquired based on fair values. Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Company’s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining noncancellable term of the lease (including the below market fixed renewal periods that are considered probable, if applicable). Capitalized above-market lease values are amortized as a reduction of rental income over the remaining noncancellable terms of the respective leases. Capitalized below-market lease values are amortized as an increase to rental income over the remaining noncancellable terms of the respective leases, including any below market fixed-rate renewal option periods that are considered probable. Other intangible assets also include in-place leases based on the Company’s evaluation of the specific characteristics of each tenant’s lease and the Company’s overall relationship with the respective tenant. The Company estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, including leasing commissions, legal and other related expenses. This intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods. Factors considered by the Company in this analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance, and other operating expenses, and estimates of lost rents at market rates during the expected lease-up periods, which primarily range from four In the event that a tenant terminates its lease, the unamortized portion of each intangible, including in-place lease values and tenant relationship values, is charged to expense and market rate adjustments (above or below) are recorded to revenue. |
Depreciation and Amortization | Depreciation and Amortization The costs of buildings and improvements are depreciated using the straight-line method based on the following useful lives: buildings and improvements (5 to 55 years) and tenant improvements (the shorter of (i) the life of the asset (1 to 16 years) or (ii) the lease term). |
Construction-in-Progress | Construction-in-ProgressProject costs directly associated with the development or redevelopment and construction of a real estate project are capitalized as construction-in-progress. Construction-in-progress also includes costs related to ongoing tenant improvement projects. In addition, interest, real estate taxes, and other expenses that are directly associated with the Company’s development or redevelopment activities are capitalized beginning when activities necessary to ready the asset for its intended use are in progress and capital expenditures have been made and ending when the property is placed in service. Interest expense is capitalized using the Company’s weighted average interest rate. Internal direct costs are capitalized to projects in which qualifying expenditures are being incurred. |
Ground Leases | Ground Leases The Company is the lessee under long-term ground leases classified as operating leases. The Company makes significant assumptions and judgments when determining the discount rate for the lease to calculate the present value of the lease payments. As the rate implicit in the lease is not readily determinable, the Company estimates the incremental borrowing rate (“IBR”) that it would need to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment, over a similar lease term. The Company utilizes a market-based approach to estimate the IBR for each individual lease. The base IBR is estimated utilizing observable mortgage and corporate bond rates, which are then adjusted to account for considerations related to the Company’s credit rating and the lease term to select an incremental borrowing rate for each lease. The right of use assets and lease liabilities are presented as “Right of use asset - operating leases, net” and “Lease liability - operating leases”, respectively, on the consolidated balance sheet as of December 31, 2022 and 2021, respectively. The lease liabilities and right of use assets are amortized on a straight-line basis over the lease term with the corresponding expense classified in “Property operating expenses” on the consolidated statements of operations. The most recent CPI adjustment is used to determine the present value of the lease payments for an indexed lease and ultimately the right of use asset and corresponding lease liability. Rent payments for amounts in excess of this estimated growth rate will be expensed on a cash basis as incurred and are considered variable lease costs. |
Impairment of Real Estate Investments | Impairment of Real Estate Investments The Company reviews its real estate investments for impairment following the end of each quarter for each of its real estate investments where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company updates leasing and other assumptions regularly, paying particular attention to real estate investments where there is an event or change in circumstances that indicates an impairment in value. Additionally, the Company considers strategic decisions regarding the future development plans for real estate investment under development and other market factors. For real estate investments to be held and used, the Company analyzes recoverability based on the estimated undiscounted future cash flows expected to be generated from the operations and eventual disposition of the assets over, in most cases, a 10-year hold period. If there is significant possibility that the Company will dispose of assets earlier, it analyzes the recoverability using a probability weighted analysis of the undiscounted future cash flows expected to be generated from the operations and eventual disposition of each asset using various probable hold periods. If the recoverability analysis indicates that the carrying value of the tested real estate investment is not recoverable, the real estate investment is written down to its fair value and an impairment is recognized in the amount of the excess of the carrying amount of the asset over its fair value. If and when the Company’s plans change, it revises its recoverability analysis to use cash flows expected from operations and eventual disposition of each asset using hold periods that are consistent with its revised plans. Estimated future cash flows used in such analysis are based on the Company’s plans for the real estate investment and its views of market economic conditions. The estimates consider assumptions, including but not limited to market rental rates, capitalization rates, and recent sales data for comparable real estate investments. Future cash flows are discounted when |
Assets Held for Sale | Assets Held for Sale The Company generally reclassifies assets to held for sale when the transaction has been approved by its Board of Trustees, or by officers vested with authority to approve the transaction, and there are no known significant contingencies relating to the sale of the real estate investment within one year of the consideration date and the consummation of the transaction is otherwise considered probable. When a real estate investment is designated as held for sale, the Company stops depreciating the real estate investment and estimates the real estate investment’s fair value, net of selling costs. If the determination is made that the estimated fair value, net of selling costs, is less than the net carrying value of the real estate investment, an impairment is recognized, reducing the net carrying value of the real estate investment to estimated fair value less selling costs. For periods in which a real estate investment is classified as held for sale, the Company classifies the assets and liabilities, as applicable, of the real estate investment as held for sale on the consolidated balance sheet for such periods. |
Impairment of Land Held for Development | Impairment of Land Held for Development When demand for build-to-suit properties declines and the ability to sell land held for development deteriorates, or other market factors indicate possible impairment in the recoverability of land held for development, it is reviewed for impairment by comparing its fair value to its carrying value. If the estimated sales value is less than the carrying value, the carrying value is written down to its estimated fair value. Estimated fair value is generally determined using a market valuation approach, comparing the subject property to recent comparable market transactions in a similar location; or using estimated cash flows. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company maintains cash equivalents in money market accounts with financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. The Company does not invest its available cash balances in money market funds. As such, available cash balances are appropriately reflected as cash and cash equivalents on the consolidated balance sheets. |
Restricted Cash | Restricted Cash Restricted cash consists of cash held as collateral to provide credit enhancement for the Company’s mortgage debt, cash for property taxes, capital expenditures and tenant improvements. Restricted cash also includes cash held by qualified intermediaries for possible investments in like-kind exchanges in accordance with Section 1031 of the Internal Revenue Code in connection with sales of the Company’s properties. Restricted cash is included in “Other assets” in the consolidated balance sheets. |
Accounts Receivable And Accrued Rent Receivable | Accounts Receivable and Accrued Rent Receivable Generally, leases with tenants are accounted for as operating leases. Minimum lease payments under tenant leases are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payment terms are recorded as “Accrued rent receivable, net” on the consolidated balance sheets. Included in current tenant receivables are tenant reimbursements which are comprised of amounts recoverable from tenants for common area maintenance expenses and certain other recoverable expenses that are recognized as revenue in the period in which the related expenses are incurred. |
Investments in Unconsolidated Real Estate Ventures | Investments in Unconsolidated Real Estate Ventures Under the equity method, investments in real estate ventures are recorded initially at cost and subsequently adjusted for equity in earnings, contributions, distributions, and impairments. The Company generally allocates income and losses from the unconsolidated real estate ventures based on the venture's distribution priorities, which may be different from its stated ownership percentage. For real estate ventures that are constructing assets to commence planned principal operations, the Company capitalizes interest expense to the extent that it is recoverable using the Company’s weighted average interest rate of consolidated debt and its investment balance as a basis. Planned principal operations commence when a property is available to lease and at that point in time, the Company ceases capitalizing interest to its investment basis. At least quarterly, management assesses whether there are any other than temporary impairment indicators of the Company’s investments in real estate ventures. If any indicators of impairment are present, we calculate the fair value of the investment in the unconsolidated real estate venture. An investment is other than temporarily impaired only if the fair value of the investment in a real estate venture, as estimated by management, is less than the carrying value and the decline is other than temporary. To the extent that an other than temporary impairment has occurred, an impairment charge is recorded in the amount of the excess of the carrying amount of the investment over the estimated fair value. Management is required to make significant judgments about the estimated fair value of its investments to determine if an impairment exists. Fair value is generally determined through income valuation approaches, including discounted cash flows and direct capitalization models. When the Company acquires an interest in or contributes assets to a real estate venture project, the difference between the Company’s cost basis in the investment and the value of the real estate venture or asset contributed is amortized over the life of the related assets, intangibles, and liabilities and such adjustment is included in the Company’s share of equity in income of unconsolidated real estate ventures. |
Deferred Costs | Deferred Costs Certain costs incurred in connection with property leasing are capitalized as deferred leasing costs. Deferred leasing costs consist primarily of third-party and internal leasing commissions that are amortized using the straight-line method over the life of the respective lease which generally ranges from 1 to 16 years. Management re-evaluates the remaining useful lives of leasing costs in conjunction with changes in the respective lease term. |
Notes Receivable | Notes Receivable The Company accounts for notes receivable on its balance sheet at amortized cost, net of allowance for loan losses. Interest income is recognized over the term of the notes receivable and is calculated based on the contractual terms of each note agreement. At inception and on a quarterly basis, the Company evaluates notes receivable for the current estimate of expected credit losses over the contractual term using a probability-of-default method and reports in net income (as a credit loss expense) the amount necessary to adjust the allowance for credit losses to reflect management's current estimate. Management considers performance and/or value of the underlying collateral property as well as the financial and operating capability of the borrower/sponsor in its evaluation. |
Deferred Financing Costs | Deferred Financing Costs Costs incurred in connection with debt financing are capitalized as a direct deduction from the carrying value of the debt, except for costs capitalized related to the Company’s unsecured credit facility, which are capitalized within the “Deferred costs, net” caption on the accompanying consolidated balance sheets. Deferred financing costs are charged to interest expense over the terms of the related debt agreements. Deferred financing costs consist primarily of loan fees which are amortized over the related loan term on a basis that approximates the effective interest method. Deferred financing costs are accelerated, when debt is extinguished, as part of the “Interest expense-amortization of deferred financing costs” caption within the Company’s consolidated statements of operations. Original issue discounts are recognized as part of the gain or loss on extinguishment of debt, as appropriate. |
Revenue Recognition | Revenue Recognition Rental Revenue The Company generates revenue under leases with tenants occupying the Properties. Generally, leases with tenants are accounted for as operating leases. The operating leases have various expiration dates. As of December 31, 2022 and 2021, the Company did not have any leases classified as direct-financing or sales-type leases. Fixed lease payments under tenant leases, determined to be collectible, are recognized on a straight-line basis over the term of the related lease. The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payments are recorded as “Accrued rent receivable” on the consolidated balance sheets. Variable lease payments are recognized as lease revenue in the period in which changes occur in facts and circumstances on which the variable lease payments are based. Topic 842 requires a binary approach to evaluating leases for collectability. Lessors are required to determine if it is probable that substantially all of the lease payments will be collected from the tenant over the lease term. Should the lessor determine that it is not probable that substantially all of the lease payments will be collected, the standard requires that the lessor write off any accrued rent receivable and begin recognizing lease payments on a cash basis. The Company’s lease revenue is impacted by the Company’s determination of whether improvements to the property, whether made by the Company or by the tenant, are landlord assets. The determination of whether an improvement is a landlord asset requires judgment. In making this judgment, the Company’s primary consideration is whether an improvement would be utilizable by another tenant upon the then-existing tenant vacating the improved space. If the Company has funded an improvement that it determines not to be landlord assets, then it treats the cost of the improvement as a lease incentive. If the tenant has funded an improvement that the Company determines to be landlord assets, then the Company treats the costs of the improvement as deferred revenue and amortizes these costs into revenue over the lease term. For certain leases, the Company also makes significant assumptions and judgments in determining the lease term, including assumptions when the lease provides the tenant with an early termination option or purchase option. The lease term impacts the period over which the Company determines and records lease payments and also impacts the period over which it amortizes lease-related costs. The Company considers all relevant factors that create an economic incentive for the lessee and uses judgment to determine if those factors, considered together, signify that the lessee is reasonably certain to exercise the option. For leases where a tenant executes a lease termination, termination fees are generally recognized over the modified term of the lease as rental income. Additionally, any deferred rents receivable are accelerated over the modified lease term. The Company’s leases also typically provide for tenant reimbursement of a portion of common area maintenance expenses and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease or to the extent that the tenant has a lease on a triple net basis. As the timing and pattern of revenue recognition is the same, rents and tenant reimbursements are treated as a combined lease component and included in the “Rents” caption within the Company's consolidated statements of operations. Fixed lease payments include contractual rents under lease agreements with tenants recognized on a straight-line basis over the lease term, including amortization of lease incentives and above or below market rent intangibles, and parking income that is fixed under a long-term contract. Variable lease payments include reimbursements billed to tenants, termination fees, bad debt expense, and parking income that is not fixed under a long-term contract. Point of Sale Revenue Point of sale revenue consists of parking, restaurant, and flexible stay revenue from the Company’s hotel operations. Point of sale service obligations are performed daily, and the customer obtains control of those services simultaneously as they are performed. Accordingly, revenue is recorded on an accrual basis as it is earned, coinciding with the services that are provided to the Company’s customers. Parking and flexible stay revenue is recognized within rents and restaurant income is recognized within other income on the consolidated statements of operations. Third party management fees, labor reimbursement, and leasing The Company performs property management services for its managed real estate ventures and third-party property owners of real estate that consist of: (i) providing leasing services, (ii) property inspections, (iii) repairs and maintenance monitoring, and (iv) financial and accounting oversight. For these services, the Company earns management fees monthly, which are based on a fixed percentage of each managed property’s financial results, and is reimbursed for the labor costs incurred by its property management employees as services are rendered to the property owners. The Company determined that control over the services is passed to its customers simultaneously as performance occurs. Accordingly, management fee revenue is earned as the services are provided to the Company’s customers. Lease commissions are earned when the Company, as a broker for the third party property owner, executes a lease agreement with a tenant. Based on the terms of the Company’s lease commission contracts, the Company's performance obligation to the customer has been completed upon execution of each lease agreement. The Company’s lease commissions are earned based on a fixed percentage of rental income generated for each executed lease agreement and there is no variable income component. Development fee revenue is earned through two different sources: (i) the Company performs development services for third parties as an agent and earns fixed development fees based on a percentage of construction costs incurred over the construction period, and (ii) the Company acts as a general contractor on behalf of one of its managed real estate ventures. The Company acts as the principal construction company for the real estate ventures and records gross revenue as it provides construction services based on the quantifiable construction outputs. In applying the cost based output method of revenue recognition, the Company uses the actual costs incurred relative to the total estimated costs to determine its progress towards contract completion and to calculate the corresponding gross revenue and gross profit to recognize. For any costs that do not contribute to satisfying the Company’s performance obligations, it excludes such costs from its output methods of revenue recognition as the amounts are not reflective of transferring control of the outputs to the customer. The use of estimates in this calculation involves significant judgment. Common Development Cost Estimates for Contributions to Development Joint Ventures When land is contributed to a development joint venture, estimated common development costs include actual costs incurred and estimates of future common development costs benefiting the property sold. When land is sold, common development costs, if they cannot be specifically identified, are allocated to each sold parcel based upon its relative sales value. For purposes of allocating common development costs, estimates of future sales proceeds and common development costs are re-evaluated throughout the year, with adjustments being allocated prospectively to the remaining land parcels available for sale. The common development cost estimates for development joint ventures are highly judgmental as they are sensitive to cost escalation, sales price escalation and pace of absorption, which are subject to judgment and are affected by expectations about future market or economic conditions. Changes in the assumptions used to estimate future common development costs could result in a significant impact on the amounts recorded as net gain on disposition of real estate or net gain on sale of undepreciated real estate. |
Income Taxes | Income Taxes Parent Company The Parent Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”). In order to continue to qualify as a REIT, the Parent Company is required to, among other things, distribute at least 90% of its annual REIT taxable income to its shareholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Parent Company is not subject to federal and state (in states that follow federal rules) income taxes with respect to the portion of its income that meets certain criteria and is distributed annually to its shareholders. Accordingly, a nominal provision for federal and state (as applicable) income taxes is included in the accompanying consolidated financial statements with respect to the operations of the Parent Company. The Parent Company intends to continue to operate in a manner that allows it to meet the requirements for taxation as a REIT. If the Parent Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state (as applicable) income taxes and may not be able to qualify as a REIT for the four tax years following the year in which it first failed to qualify. The Parent Company is subject to certain local income taxes. Provision for federal income taxes is recorded in the income tax provision line item and state and local income taxes have been included in operating expenses in the Parent Company’s consolidated statements of operations. The Parent Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Parent Company’s ordinary income and (b) 95% of the Parent Company’s net capital gain exceeds cash distributions and certain taxes paid by the Parent Company. No excise tax was incurred in 2022, 2021 or 2020. The Parent Company has elected to treat several of its subsidiaries as taxable REIT subsidiaries (each a “TRS”). A TRS is subject to federal, state and local income tax. In general, a TRS may perform non-customary services for tenants, hold assets that the Parent Company, as a REIT, cannot hold directly and generally may engage in any real estate or non-real estate related business. The Company’s taxable REIT subsidiaries did not have material tax provisions or deferred income tax items as of December 31, 2022 and December 31, 2021. Operating Partnership In general, the Operating Partnership is not subject to federal and state income taxes, and accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements. The partners of the Operating Partnership are required to include their respective share of the Operating Partnership’s profits or losses in their respective tax returns. The Operating Partnership’s tax returns and the amount of allocable partnership profits and losses are subject to examination by federal and state taxing authorities. For any year beginning on or after January 1, 2017, the Operating Partnership can be assessed with federal income tax in the course of an audit by the IRS. Under the partnership audit rules included in the Bipartisan Budget Act of 2015, the Operating Partnership has the option to make a push-out election and allocate the partnership adjustments to all the former partners for the tax year under audit. The Operating Partnership may elect to treat a subsidiary as a REIT under Sections 856 through 860 of the Code, if applicable. Each subsidiary REIT would be required to meet the requirements for treatment as a REIT under Sections 856 through 860 of the Code. If a subsidiary REIT fails to qualify as a REIT in any taxable year, that subsidiary REIT would be subject to federal and state income taxes and would not be able to qualify as a REIT for the four subsequent taxable years. Also, each subsidiary REIT would be subject to certain local income taxes. The Operating Partnership has elected to treat several of its subsidiaries as TRSs, which are subject to federal, state and local income tax. |
Earnings Per Share and Per Unit | Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net income available to common shareholders, as adjusted for unallocated earnings, if any, of certain securities, by the weighted average number of common shares outstanding during the year. Diluted EPS reflects the potential dilution that could occur from common shares issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options, and conversion of the noncontrolling interests in the Operating Partnership. Anti-dilutive shares are excluded from the calculation. Earnings Per Unit Basic earnings per unit is computed by dividing net income available to common unitholders, as adjusted for unallocated earnings, if any, of certain securities issued by the Operating Partnership, by the weighted average number of common unit equivalents outstanding during the year. Diluted earnings per unit reflects the potential dilution that could occur from units issuable in connection with awards under share-based compensation plans, including upon the exercise of stock options. Anti-dilutive units are excluded from the calculation. |
Share-Based Compensation Plans | Share-Based Compensation PlansThe Parent Company maintains a shareholder-approved equity-incentive plan known as the Amended and Restated 1997 Long-Term Incentive Plan (the “1997 Plan”). The 1997 Plan is administered by the Compensation Committee of the Parent Company’s Board of Trustees. Under the 1997 Plan, the Compensation Committee is authorized to award equity and equity-based awards, including incentive stock options, non-qualified stock options, restricted share rights and performance-based share units. |
Comprehensive Income | Comprehensive Income Comprehensive income is recorded in accordance with the provisions of the accounting standard for comprehensive income. The accounting standard establishes standards for reporting comprehensive income and its components in the financial statements. Comprehensive income includes the effective portions of changes in the fair value of derivatives. |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities The Company accounts for its derivative instruments and hedging activities in accordance with the accounting standard for derivative and hedging activities. The accounting standard requires the Company to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them on the balance sheet as either an asset or liability. See disclosures below related to the accounting standard for fair value measurements and disclosures. For derivatives designated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income while the ineffective portions are recognized in earnings. The Company actively manages its ratio of fixed-to-floating rate debt. To manage its fixed and floating rate debt in a cost-effective manner, the Company, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts. |
Fair Value Measurements | Fair Value Measurements The Company estimates the fair value of its derivatives in accordance with the accounting standard for fair value measurements and disclosures. The accounting standard defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. 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. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. |
Risks And Uncertainties - COVID-19 | Risks and Uncertainties - COVID-19 The ongoing global COVID-19 pandemic, has slowed global economic activity and caused significant volatility in financial markets, causing many to fear a global recession. The responses of many countries, including the U.S., have disrupted the global economy and supply chains and adversely impacted many industries, including owners and developers of real estate. Moreover, there is significant uncertainty related to the COVID-19 pandemic's impact on the U.S. economy and consumer confidence. Demand for space at the Company's properties is dependent on a variety of macroeconomic factors, such as employment levels, interest rates, changes in stock market valuations, rent levels and availability of competing space. The extent to which the COVID-19 pandemic impacts the Company's results will depend on future developments, many of which are highly uncertain and cannot be predicted. The COVID-19 pandemic has caused continued negative economic impacts, market volatility, and business disruption, which could negatively impact the Company's tenants’ ability to pay rent, the |
Recent Accounting Pronouncements | Recent Accounting PronouncementsIn 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, 2024. The guidance may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply elections as applicable as additional changes in the market occur. 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. See Note 9, “Debt Obligations” for further information regarding our remaining LIBOR-indexed obligations. |
ORGANIZATION OF THE PARENT CO_2
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule 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 December 31, 2022: Number of Properties Rentable Square Feet Office properties 67 11,848,707 Mixed-use properties 5 942,334 Core Properties 72 12,791,041 Development property 2 350,488 Redevelopment properties 3 436,659 The Properties 77 13,578,188 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Disaggregation of Revenue | The following is a summary of revenue earned by the Company’s reportable segments (see Note 19 “Segment Information,” for further information) during the year ended December 31, 2022 (in thousands): Philadelphia CBD Pennsylvania Suburbs Austin, Texas Metropolitan Washington, D.C. Other Corporate (a) Total Fixed rent $ 151,034 $ 116,926 $ 60,831 $ 16,686 $ 9,805 $ (1,895) $ 353,387 Variable rent 51,346 11,615 32,958 1,283 2,644 (35) 99,811 Total lease revenue 202,380 128,541 93,789 17,969 12,449 (1,930) 453,198 Amortization of deferred market rents 1,308 10 1,264 — — — 2,582 Daily parking & hotel flexible stay 14,390 — 361 84 236 — 15,071 Total rents 218,078 128,551 95,414 18,053 12,685 (1,930) 470,851 Third party management fees, labor reimbursement and leasing 287 35 486 3,723 1,988 17,613 24,132 Other income 2,510 354 429 123 38 7,663 11,117 Total revenue $ 220,875 $ 128,940 $ 96,329 $ 21,899 $ 14,711 $ 23,346 $ 506,100 The following is a summary of revenue earned by the Company’s reportable segments (see Note 19 “Segment Information,” for further information) during the year ended December 31, 2021 (in thousands): Philadelphia CBD Pennsylvania Suburbs Austin, Texas Metropolitan Washington, D.C. Other Corporate (a) Total Fixed rent $ 149,441 $ 113,748 $ 62,545 $ 12,410 $ 8,020 $ (2,240) $ 343,924 Variable rent 41,585 10,358 34,850 646 2,660 (257) 89,842 Total lease revenue 191,026 124,106 97,395 13,056 10,680 (2,497) 433,766 Amortization of deferred market rents 2,064 (9) 3,322 — — — 5,377 Daily parking & hotel flexible stay 11,758 159 109 117 233 — 12,376 Total rents 204,848 124,256 100,826 13,173 10,913 (2,497) 451,519 Third party management fees, labor reimbursement and leasing 893 34 452 6,548 3,077 15,440 26,444 Other income 2,117 276 402 144 25 5,892 8,856 Total revenue $ 207,858 $ 124,566 $ 101,680 $ 19,865 $ 14,015 $ 18,835 $ 486,819 The following is a summary of revenue earned by the Company’s reportable segments (see Note 19 “Segment Information,” for further information) during the year ended December 31, 2020 (in thousands): Philadelphia CBD Pennsylvania Suburbs Austin, Texas Metropolitan Washington, D.C. Other Corporate (a) Total Fixed rent $ 166,286 $ 128,044 $ 63,366 $ 29,830 $ 8,064 $ (2,412) $ 393,178 Variable rent 51,410 12,951 35,123 3,544 2,401 (1,343) 104,086 Total lease revenue 217,696 140,995 98,489 33,374 10,465 (3,755) 497,264 Amortization of deferred market rents 1,146 (12) 3,531 — 203 — 4,868 Daily parking & hotel flexible stay 10,777 179 49 135 232 — 11,372 Total rents 229,619 141,162 102,069 33,509 10,900 (3,755) 513,504 Third party management fees, labor reimbursement and leasing 927 39 689 6,541 2,560 7,824 18,580 Other income 1,482 412 224 173 9 468 2,768 Total revenue $ 232,028 $ 141,613 $ 102,982 $ 40,223 $ 13,469 $ 4,537 $ 534,852 (a) Corporate includes intercompany eliminations necessary to reconcile to consolidated Company totals. |
REAL ESTATE INVESTMENTS (Tables
REAL ESTATE INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Gross Carrying Value of Operating Properties | As of December 31, 2022 and 2021, the gross carrying value of the operating properties was as follows (in thousands): December 31, 2022 December 31, 2021 Land $ 403,998 $ 410,144 Building and improvements 2,760,357 2,653,492 Tenant improvements 452,885 408,966 Total $ 3,617,240 $ 3,472,602 |
Schedule of Capitalized Construction Costs | The following table shows the amount of compensation costs (including bonuses and benefits) capitalized for the years presented (in thousands): December 31, 2022 2021 2020 Development $ 5,343 $ 4,815 $ 4,802 Redevelopment 1,484 1,170 543 Tenant Improvements 2,505 1,917 3,021 Total $ 9,332 $ 7,902 $ 8,366 |
Schedule of Acquired Properties | 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 additional density is included in prepaid leasehold interests in land held for development in the consolidated balance sheets. See below regarding disposition of 500,000 square feet of FAR. The following table summarizes the property acquisitions during the year ended December 31, 2020 (dollars in thousands): Property/Portfolio Name Acquisition Date Location Property Type Rentable Square Feet/Acres Purchase Price (a) 155 King of Prussia Road February 27, 2020 Radnor, PA Land 7.75 acres $ 11,250 1505-11 Race Street November 5, 2020 Philadelphia, PA Office 119,763 $ 9,700 250 King of Prussia Road (b) November 30, 2020 Radnor, PA Office 169,843 $ 20,250 (a) Exclusive of transaction costs and price adjustments. See purchase price allocation table below for a breakout of the net purchase price for wholly owned properties. (b) This property was placed into redevelopment and is therefore included within Construction-in-progress on the consolidated balance sheets. |
Schedule of Asset Acquisition | The acquisition values have been allocated as follows (in thousands): 1505-11 Race Street Building, land and improvements $ 9,723 Intangible assets acquired 2,422 Below market lease liabilities assumed (2,193) Total unencumbered acquisition value 9,952 Amortization period of intangible assets 1.5 years Amortization period of below market liabilities assumed 1.5 years |
Schedule of Office Properties Sold | The following table summarizes the property dispositions during the years ended December 31, 2022, 2021 and 2020 (dollars in thousands): Property/Portfolio Name Disposition Date Location Property Type Rentable Square Feet/Acres Sales Price Gain/(Loss) on Sale (a) 200 Barr Harbor Drive November 22, 2022 West Conshohocken, PA Office 86,000 $ 30,500 $ 8,740 11501 Burnett Road (h) July 29, 2022 Austin, TX Land 4.7 acres $ 32,513 $ 8,340 3151 Market Street (g) July 14, 2022 Philadelphia, PA Leasehold Interest 0.8 acres $ 30,394 $ 2,583 Gibbsboro Portfolio (f) June 28, 2022 Gibbsboro, NJ Office/Land 42,809/4.0 acres $ 4,100 $ 831 25 M Street (e) April 14, 2022 Washington, D.C. Land 0.8 acres $ 29,675 $ 3,836 Gateway G & H January 20, 2022 Richmond, VA Land 10.0 acres $ 1,600 $ 897 1100 Lenox Drive September 8, 2021 Lawrenceville, NJ Land 5.0 acres $ 2,575 $ 68 2100-2200 Lenox Drive July 6, 2021 Lawrenceville, NJ Land 35.2 acres $ 8,900 $ 842 3025 JFK Boulevard February 2, 2021 Philadelphia, PA Leasehold Interest 1.0 acre $ 34,800 $ 2,000 Mid-Atlantic Office Portfolio (b) (d) December 21, 2020 Various Office 1,128,645 $ 192,943 $ 15,164 One and Two Commerce Square (c) July 21, 2020 Philadelphia, PA Office 1,896,142 $ 115,000 $ 271,905 Keith Valley June 15, 2020 Horsham, PA Land 14.0 Acres $ 4,000 $ 201 52 East Swedesford Road March 19, 2020 Malvern, PA Office 131,077 $ 18,000 $ 2,336 (a) Gain/(Loss) on Sale is net of closing and other transaction related costs. (b) The Company sold a 60% equity interest in a portfolio of twelve suburban office properties containing an aggregate of 1.1 million square feet (“Mid-Atlantic Office Portfolio”), nine of which are located in the Pennsylvania suburbs and three of which are located in Maryland, to an unrelated third party for a gross sales price of $192.9 million. The transaction resulted in deconsolidation of the properties and formation of PA/MD NNN Office JV, LLC (“Mid-Atlantic Office JV”). The Company recorded its investment at fair value and recognized a gain of $15.2 million in “Net gain on disposition of real estate” on the consolidated statements of operations. See Note 4 “Investment in Unconsolidated Real Estate Ventures,” for further information. (c) The Company sold a 30% preferred equity interest in two office buildings located in Philadelphia, Pennsylvania, to an unrelated third party for $115.0 million (the “Commerce Square Venture Transaction”), which resulted in deconsolidation of the properties and formation of Brandywine Commerce I LP and Brandywine Commerce II LP (collectively, the “Commerce Square Venture”). The transaction valued the properties at $600.0 million. The Company recorded its investment at fair value and recognized a gain of $271.9 million in “Net gain on disposition of real estate” on the consolidated statements of operations. See Note 4 “Investment in Unconsolidated Real Estate Ventures,” for further information. (d) The sales price includes $4.1 million of variable consideration held in escrow that will be released to the Company over a six (e) On September 30, 2022, the Company recognized $0.4 million of additional gain on disposition of real estate. (f) 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 twelve months ended December 31, 2022. (g) On July 14, 2022, the Company contributed 500,000 square feet of FAR relating to its 99-year prepaid leasehold interest at 3151 Market Street in Philadelphia, Pennsylvania, acquired on April 29, 2022, to a newly formed joint venture with an unaffiliated third party. The Company's initial deemed contribution in the project was $30.4 million and the transaction resulted in deconsolidation of the property and conversion of Brandywine 3151 Market, LP, (formerly a wholly-owned subsidiary of the Operating Partnership) to a real estate venture (“3151 Market Street Venture”). The Company recorded its investment at fair value and recognized a gain, net of transaction costs, of $2.6 million, in “Net gain on sale of undepreciated real estate” on the consolidated statements of operations. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information. (h) On July 29, 2022, the Company contributed a 4.7 acre parcel of land held for development at 11501 Burnet Road in Austin, Texas to a newly formed joint venture with an unaffiliated third party. The project is part of the Uptown ATX master development. The Company's combined contributed initial land investment in the project was $32.5 million and the transaction resulted in the deconsolidation of the property and formation of Brandywine Uptown Office LLC and Brandywine One Uptown Multifamily LLC, (together, “One Uptown Ventures)”). The Company recorded its investment at fair value and recognized a gain of $8.3 million in “Net gain on disposition of real estate” on the consolidated statements of operations. Gain on sale of $8.3 million is calculated as the difference between the estimated relative sales value of the contributed land and the estimated total cost allocations per block. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Financial Position of Real Estate Ventures | The Company’s investment in the unconsolidated real estate ventures as of December 31, 2022 and 2021, and the Company’s share of the unconsolidated real estate ventures’ income (loss) for the years ended December 31, 2022, 2021, and 2020 was as follows (in thousands): Ownership Percentage Carrying Amount Company's Share of unconsolidated real estate venture Income (Loss) Unconsolidated Real Estate Venture Debt at 100%, gross 2022 2021 2022 2021 2020 2022 2021 Office Properties Commerce Square Venture 70% (a) $ 238,105 $ 247,798 $ (12,128) $ (15,501) $ (9,150) $ 206,737 $ 213,069 Mid-Atlantic Office Venture 40% (a) 31,005 31,680 412 932 96 128,904 123,015 Brandywine - AI Venture LLC 50% — — — (721) 185 — — Herndon Innovation Center Metro Portfolio Venture, LLC 15% 15,304 15,844 (536) (174) (358) 207,302 207,302 MAP Venture (b) 50% (35,411) (24,396) (8,340) (8,683) (6,570) 182,053 184,263 Cira Square 20% 27,815 — (985) — — 257,700 — Other 4040 Wilson Venture (c) 50% 29,633 31,059 (1,211) (2,258) (2,162) 145,070 145,000 1919 Venture (d) 50% — 13,791 1,392 427 59 — 88,860 Development Properties 3025 JFK Venture (c) 55% 57,630 56,370 (35) (118) — 60,118 — JBG - 51 N Street (c) 70% 21,208 21,213 (382) (402) (457) — — JBG - 1250 First Street Office (c) 70% 17,759 17,751 (195) (199) (227) — — 3151 Market Street Venture (c) 55% 63,751 — (8) — — — — One Uptown - Office (c) 50% 34,980 — — — — 16,895 — One Uptown - Multifamily (c) 50% 30,445 — — — — — — $ 532,224 $ 411,110 $ (22,016) $ (26,697) $ (18,584) $ 1,204,779 $ 961,509 (a) Ownership percentage represents the Company’s combined interest including preferred and common equity holdings. See “Commerce Square Venture” and “Mid-Atlantic Office JV” sections below for more information. (b) Included within “Other Liabilities” on the consolidated balance sheet. (c) This entity is a VIE. (d) On November 30, 2022, the Company sold its interest in 1919 Venture. See “1919 Venture” sections for more information on the disposal. The following is a summary of the financial position of the unconsolidated real estate ventures in which the Company held interests as of December 31, 2022 and December 31, 2021 (in thousands): December 31, 2022 December 31, 2021 Net property $ 2,117,226 $ 1,563,263 Other assets 506,213 434,687 Other liabilities 446,101 331,947 Debt, net 1,198,213 956,668 Equity (a) 979,125 709,335 (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. |
Schedule of Results of Operations of Real Estate Ventures with Interests | The following is a summary of results of operations of the unconsolidated real estate ventures in which the Company held interests during the twelve-month periods ended December 31, 2022, 2021 and 2020 (in thousands): Year Ended December 31, 2022 2021 2020 Revenue $ 244,981 $ 214,792 $ 150,276 Operating expenses (124,608) (117,273) (85,812) Interest expense, net (49,007) (30,569) (22,661) Depreciation and amortization (103,378) (97,147) (70,805) Provision for impairment — (1,393) — Net loss $ (32,012) $ (31,590) $ (29,002) Ownership interest % Various Various Various Company's share of net loss $ (21,594) $ (25,972) $ (18,540) Basis adjustments and other (422) (725) (44) Equity in loss of unconsolidated real estate ventures $ (22,016) $ (26,697) $ (18,584) |
Schedule of Maturities of Long-term Debt | As of December 31, 2022, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands): 2023 $ 388,789 2024 593,907 2025 60,118 2026 161,965 2027 — Thereafter — Total principal payments 1,204,779 Net deferred financing costs (6,837) Net original issue premium 271 Outstanding indebtedness $ 1,198,213 As of December 31, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2023 $ 54,301 2024 350,000 2025 — 2026 88,500 2027 700,000 Thereafter 778,610 Total principal payments 1,971,411 Net unamortized premiums/(discounts) 2,934 Net deferred financing costs (9,307) Outstanding indebtedness $ 1,965,038 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Operating Lease Future Contractual Lease Payments | The Company leases properties to tenants under operating leases with various expiration dates. Future contractual lease payments under operating leases at December 31, 2022 are as follows (in thousands): Year 2023 $ 347,142 2024 344,641 2025 325,166 2026 304,102 2027 263,532 Thereafter 1,041,686 |
Schedule of Lease Costs | The table below summarizes the Company’s operating lease cost (in thousands) recognized through “Property operating expenses” on the consolidated statements of operations (in thousands): Year Ended December 31, Lease Cost 2022 2021 Fixed lease cost $ 2,100 $ 2,100 Variable lease cost 67 43 Total $ 2,167 $ 2,143 Weighted-average remaining lease term (years) 54.6 55.2 Weighted-average discount rate 6.3 % 6.3 % |
Schedule of Operating Lease Liability Maturities | Lease payments on noncancellable leases at December 31, 2022 are as follows (in thousands): Year Minimum Rent 2023 $ 1,263 2024 1,305 2025 1,321 2026 1,338 2027 1,355 Thereafter 106,437 Total lease payments $ 113,019 Less: Imputed interest 89,853 Present value of operating lease liabilities $ 23,166 |
DEFERRED COSTS (Tables)
DEFERRED COSTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Deferred Costs | As of December 31, 2022 and 2021, the Company’s deferred costs were comprised of the following (in thousands): December 31, 2022 Total Cost Accumulated Amortization Deferred Costs, net Leasing costs $ 155,457 $ (62,920) $ 92,537 Financing costs - Unsecured Credit Facility 4,688 (586) 4,102 Total $ 160,145 $ (63,506) $ 96,639 December 31, 2021 Total Cost Accumulated Amortization Deferred Costs, net Leasing costs $ 143,895 $ (57,445) $ 86,450 Financing costs - Unsecured Credit Facility 6,299 (5,887) 412 Total $ 150,194 $ (63,332) $ 86,862 |
INTANGIBLE ASSETS AND LIABILI_2
INTANGIBLE ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Liabilities | As of December 31, 2022 and 2021, the Company’s intangible assets/liabilities were comprised of the following (in thousands): December 31, 2022 Total Cost Accumulated Amortization Intangible Assets, net Intangible assets, net: In-place lease value $ 55,715 $ (37,437) $ 18,278 Tenant relationship value 167 (104) 63 Above market leases acquired 331 (221) 110 Total intangible assets, net $ 56,213 $ (37,762) $ 18,451 Total Cost Accumulated Amortization Intangible Liabilities, net Intangible liabilities, net: Below market leases acquired $ 20,985 $ (10,663) $ 10,322 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 |
Schedule of Amortization for Intangible Assets and Liabilities | As of December 31, 2022, the Company’s annual amortization for its intangible assets/liabilities, assuming no prospective early lease terminations, was as follows (dollars in thousands): Assets Liabilities 2023 $ 6,573 $ 1,516 2024 4,332 1,305 2025 3,154 1,029 2026 1,094 739 2027 809 623 Thereafter 2,489 5,110 Total $ 18,451 $ 10,322 |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 and 2021 (in thousands): December 31, 2022 December 31, 2021 Effective Maturity UNSECURED DEBT $600 million Unsecured Credit Facility $ 88,500 $ 23,000 SOFR + 1.15% June 2026 Unsecured Term Loan 250,000 250,000 SOFR + 1.30% June 2027 (a) $350.0M 3.95% Guaranteed Notes due 2023 54,301 350,000 3.87% February 2023 (b) $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 7.55% Guaranteed Notes due 2028 350,000 — 7.73% March 2028 $350.0M 4.55% Guaranteed Notes due 2029 350,000 350,000 4.30% October 2029 Indenture IA (Preferred Trust I) 27,062 27,062 LIBOR + 1.25% March 2035 Indenture IB (Preferred Trust I) 25,774 25,774 LIBOR + 1.25% April 2035 Indenture II (Preferred Trust II) 25,774 25,774 LIBOR + 1.25% July 2035 Principal balance outstanding 1,971,411 1,851,610 Plus: original issue premium (discount), net 2,934 8,187 Less: deferred financing costs (9,307) (6,211) Total unsecured indebtedness $ 1,965,038 $ 1,853,586 (a) On November 23, 2022, the unsecured term loan of $250.0 million was swapped to a fixed rate of 5.01% and matures on June 30, 2027. The effective date of the swap is January 31, 2023. (b) Remaining balance was redeemed on January 20, 2023. |
Schedule of Maturities of Long-term Debt | As of December 31, 2022, the aggregate principal payments of the unconsolidated real estate ventures recourse and non-recourse debt payable to third-parties are as follows (in thousands): 2023 $ 388,789 2024 593,907 2025 60,118 2026 161,965 2027 — Thereafter — Total principal payments 1,204,779 Net deferred financing costs (6,837) Net original issue premium 271 Outstanding indebtedness $ 1,198,213 As of December 31, 2022, the aggregate scheduled principal payments on the Company's debt obligations were as follows (in thousands): 2023 $ 54,301 2024 350,000 2025 — 2026 88,500 2027 700,000 Thereafter 778,610 Total principal payments 1,971,411 Net unamortized premiums/(discounts) 2,934 Net deferred financing costs (9,307) Outstanding indebtedness $ 1,965,038 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments with Fair Values Different from their Carrying Amount | The following are financial instruments for which the Company’s estimates of fair value differ from the carrying amounts (in thousands): December 31, 2022 December 31, 2021 Carrying Amount (a) Fair Value Carrying Amount (a) Fair Value Unsecured notes payable $ 1,549,760 $ 1,411,351 $ 1,502,368 $ 1,588,780 Variable rate debt $ 415,278 $ 386,988 $ 351,218 $ 344,754 Notes receivable (b) $ — $ — $ 44,430 $ 45,230 (a) Net of deferred financing costs of $7.5 million and $5.8 million for unsecured notes payable, $1.8 million and $0.4 million for variable rate debt as of December 31, 2022 and December 31, 2021, respectively. (b) For further detail, refer to Note 5 “Debt and Preferred Equity Investments.” |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table summarizes the terms and fair values of the Company’s derivative financial instruments as of December 31, 2022 and December 31, 2021. The notional amounts provide an indication of the extent of the Company’s involvement in these instruments at that time but do not represent exposure to credit, interest rate or market risks (amounts presented in thousands). Hedge Product Hedge Type Designation Notional Amount Strike Trade Date Maturity Date Fair value 12/31/2022 12/31/2021 12/31/2022 12/31/2021 Assets Swap Interest Rate Cash Flow (a) $ 250,000 $ — 3.729 % November 23, 2022 June 30, 2027 $ 255 $ — Liabilities Swap Interest Rate Cash Flow (b) $ — $ 250,000 2.868 % October 8, 2015 October 8, 2022 $ — $ (2,461) $ 250,000 $ 250,000 (a) Hedging unsecured variable rate debt. (b) On October 8, 2022, the interest rate hedge contract for this swap expired. |
BENEFICIARIES' EQUITY OF THE _2
BENEFICIARIES' EQUITY OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, 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): Year Ended December 31, 2022 2021 2020 Basic Diluted Basic Diluted Basic Diluted Numerator Net income $ 53,992 $ 53,992 $ 12,366 $ 12,366 $ 307,326 $ 307,326 Net income attributable to noncontrolling interests (168) (168) (77) (77) (1,799) (1,799) Nonforfeitable dividends allocated to unvested restricted shareholders (456) (456) (421) (421) (410) (410) Net income attributable to common shareholders $ 53,368 $ 53,368 $ 11,868 $ 11,868 $ 305,117 $ 305,117 Denominator Weighted-average shares outstanding 171,491,369 171,491,369 170,878,185 170,878,185 171,926,079 171,926,079 Contingent securities/Share based compensation — 834,277 — 1,395,055 — 390,997 Weighted-average shares outstanding 171,491,369 172,325,646 170,878,185 172,273,240 171,926,079 172,317,076 Earnings per Common Share: Net income attributable to common shareholders $ 0.31 $ 0.31 $ 0.07 $ 0.07 $ 1.77 $ 1.77 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): Year Ended December 31, 2022 2021 2020 Basic Diluted Basic Diluted Basic Diluted Numerator Net income $ 53,992 $ 53,992 $ 12,366 $ 12,366 $ 307,326 $ 307,326 Net (income) loss attributable to noncontrolling interests 2 2 3 3 (20) (20) Nonforfeitable dividends allocated to unvested restricted unitholders (456) (456) (421) (421) (410) (410) Net income attributable to common unitholders $ 53,538 $ 53,538 $ 11,948 $ 11,948 $ 306,896 $ 306,896 Denominator Weighted-average units outstanding 172,036,481 172,036,481 171,770,843 171,770,843 172,907,713 172,907,713 Contingent securities/Share based compensation — 834,277 — 1,395,055 — 390,997 Total weighted-average units outstanding 172,036,481 172,870,758 171,770,843 173,165,898 172,907,713 173,298,710 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.31 $ 0.31 $ 0.07 $ 0.07 $ 1.77 $ 1.77 |
PARTNERS' EQUITY OF THE PAREN_2
PARTNERS' EQUITY OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Earnings Per Share, 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): Year Ended December 31, 2022 2021 2020 Basic Diluted Basic Diluted Basic Diluted Numerator Net income $ 53,992 $ 53,992 $ 12,366 $ 12,366 $ 307,326 $ 307,326 Net income attributable to noncontrolling interests (168) (168) (77) (77) (1,799) (1,799) Nonforfeitable dividends allocated to unvested restricted shareholders (456) (456) (421) (421) (410) (410) Net income attributable to common shareholders $ 53,368 $ 53,368 $ 11,868 $ 11,868 $ 305,117 $ 305,117 Denominator Weighted-average shares outstanding 171,491,369 171,491,369 170,878,185 170,878,185 171,926,079 171,926,079 Contingent securities/Share based compensation — 834,277 — 1,395,055 — 390,997 Weighted-average shares outstanding 171,491,369 172,325,646 170,878,185 172,273,240 171,926,079 172,317,076 Earnings per Common Share: Net income attributable to common shareholders $ 0.31 $ 0.31 $ 0.07 $ 0.07 $ 1.77 $ 1.77 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): Year Ended December 31, 2022 2021 2020 Basic Diluted Basic Diluted Basic Diluted Numerator Net income $ 53,992 $ 53,992 $ 12,366 $ 12,366 $ 307,326 $ 307,326 Net (income) loss attributable to noncontrolling interests 2 2 3 3 (20) (20) Nonforfeitable dividends allocated to unvested restricted unitholders (456) (456) (421) (421) (410) (410) Net income attributable to common unitholders $ 53,538 $ 53,538 $ 11,948 $ 11,948 $ 306,896 $ 306,896 Denominator Weighted-average units outstanding 172,036,481 172,036,481 171,770,843 171,770,843 172,907,713 172,907,713 Contingent securities/Share based compensation — 834,277 — 1,395,055 — 390,997 Total weighted-average units outstanding 172,036,481 172,870,758 171,770,843 173,165,898 172,907,713 173,298,710 Earnings per Common Partnership Unit: Net income attributable to common unitholders $ 0.31 $ 0.31 $ 0.07 $ 0.07 $ 1.77 $ 1.77 |
SHARE BASED COMPENSATION, 401_2
SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Company's Restricted Share Activity | The following table summarizes the Company’s Restricted Share Rights activity during the year-ended December 31, 2022: Shares Weighted Average Grant Date Fair Value Non-vested at January 1, 2022 474,978 $ 13.51 Granted 306,555 $ 13.30 Vested (219,765) $ 13.94 Forfeited (7,874) $ 13.45 Non-vested at December 31, 2022 553,894 $ 13.22 |
Schedule of Restricted Performance Share Units Plan | The table below presents certain information as to unvested RPSU awards. RPSU Grant Date 3/5/2020 3/5/2021 3/3/2022 Total (Amounts below in shares, unless otherwise noted) Non-vested at January 1, 2022 314,055 374,161 — 688,216 Granted — — 516,852 516,852 Units Cancelled (2,076) (2,922) (3,814) (8,812) Non-vested at December 31, 2022 311,979 371,239 513,038 1,196,256 Measurement Period Commencement Date 1/1/2020 1/1/2021 1/1/2022 Measurement Period End Date 12/31/2022 12/31/2023 12/31/2024 Granted 319,600 380,957 516,852 Fair Value of Units on Grant Date (in thousands) $ 5,389 $ 6,389 $ 6,872 |
DISTRIBUTIONS (Tables)
DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Distributions [Abstract] | |
Schedule of Dividends Payable | The following table provides the tax characteristics of the 2022, 2021 and 2020 distributions paid: Years ended December 31, 2022 2021 2020 (in thousands, except per share amounts) Common Share Distributions: Ordinary income $ 0.47 $ 0.64 $ 0.41 Capital gain 0.29 0.01 0.35 Non-taxable distributions — 0.11 — Distributions per share $ 0.76 $ 0.76 $ 0.76 Percentage classified as ordinary income 62.10 % 83.90 % 53.90 % Percentage classified as capital gain 37.90 % 1.20 % 46.10 % Percentage classified as non-taxable distribution — % 14.90 % — % |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table details the components of accumulated other comprehensive income (loss) of the Parent Company and the Operating Partnership as of and for the three years ended December 31, 2022 (in thousands): Parent Company Cash Flow Hedges Balance at January 1, 2020 $ (2,370) Change in fair market value during year (5,972) Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests 29 Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2020 $ (7,561) Change in fair market value during year 4,817 Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests (28) Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2021 $ (2,020) Change in fair market value during year 5,371 Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests (18) Amortization of interest rate contracts reclassified from comprehensive income to interest expense 564 Balance at December 31, 2022 $ 3,897 Operating Partnership Cash Flow Hedges Balance at January 1, 2020 $ (2,715) Change in fair market value during year (5,972) Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2020 $ (7,935) Change in fair market value during year 4,817 Amortization of interest rate contracts reclassified from comprehensive income to interest expense 752 Balance at December 31, 2021 $ (2,366) Change in fair market value during year 5,371 Amortization of interest rate contracts reclassified from comprehensive income to interest expense 564 Balance at December 31, 2022 $ 3,569 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables provide selected asset information and results of operations of the Company’s reportable segments (in thousands): Real estate investments, at cost: December 31, 2022 December 31, 2021 Philadelphia CBD $ 1,517,801 $ 1,460,510 Pennsylvania Suburbs 878,546 866,223 Austin, Texas 851,835 778,145 Metropolitan Washington, D.C. 282,458 280,921 Other 86,600 86,803 Operating Properties $ 3,617,240 $ 3,472,602 Corporate Right of use asset - operating leases, net $ 19,664 $ 20,313 Construction-in-progress $ 218,869 $ 277,237 Land held for development $ 76,499 $ 114,604 Prepaid leasehold interests in land held for development, net $ 35,576 $ 27,762 . Net operating income: Year Ended December 31, 2022 2021 2020 Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income Total revenue Operating expenses (a) Net operating income (loss) Philadelphia CBD $ 220,876 $ (79,827) $ 141,049 $ 207,858 $ (73,695) $ 134,163 $ 232,028 $ (82,505) $ 149,523 Pennsylvania Suburbs 128,940 (41,814) 87,126 124,566 (40,011) 84,555 141,613 (46,281) 95,332 Austin, Texas 96,328 (41,141) 55,187 101,680 (39,374) 62,306 102,982 (39,759) 63,223 Metropolitan Washington, D.C. 21,900 (12,539) 9,361 19,865 (15,386) 4,479 40,223 (20,791) 19,432 Other 14,710 (8,626) 6,084 14,015 (9,840) 4,175 13,469 (9,815) 3,654 Corporate 23,346 (10,454) 12,892 18,835 (10,005) 8,830 4,537 (6,305) (1,768) Operating properties $ 506,100 $ (194,401) $ 311,699 $ 486,819 $ (188,311) $ 298,508 $ 534,852 $ (205,456) $ 329,396 (a) Includes property operating expense, real estate taxes and third party management expense. Unconsolidated real estate ventures: Investment in real estate ventures, at equity Equity in income (loss) of real estate venture As of Year ended December 31, December 31, 2022 December 31, 2021 2022 2021 2020 Philadelphia CBD $ 387,301 $ 317,959 $ (11,764) $ (15,191) $ (9,090) Metropolitan Washington, D.C. 83,903 85,867 (2,324) (3,755) (3,019) Mid-Atlantic Office JV 31,005 31,680 412 932 96 MAP Venture (35,411) (24,396) (8,340) (8,683) (6,571) Austin, Texas 65,426 — — — — Total $ 532,224 $ 411,110 $ (22,016) $ (26,697) $ (18,584) |
Schedule of Reconciliation of Consolidated Net Income (Loss) | The following is a reconciliation of consolidated net income (loss), as defined by GAAP, to consolidated NOI, (in thousands): Year Ended December 31, 2022 2021 2020 Net income $ 53,992 $ 12,366 $ 307,326 Plus: Interest expense 68,764 62,617 73,911 Interest expense - amortization of deferred financing costs 3,091 2,836 2,904 Depreciation and amortization 177,984 178,105 188,283 General and administrative expenses 35,006 30,153 30,288 Equity in loss of unconsolidated real estate ventures 22,016 26,697 18,584 Provision for impairment 4,663 — — Loss on early extinguishment of debt 435 — — Less: Interest and investment income 1,905 8,295 1,939 Income tax (provision) benefit (55) (47) 224 Net gain on disposition of real estate 17,677 142 289,461 Net gain on sale of undepreciated real estate 8,007 2,903 201 Net gain on real estate venture transactions 26,718 2,973 75 Consolidated net operating income $ 311,699 $ 298,508 $ 329,396 |
ORGANIZATION OF THE PARENT CO_3
ORGANIZATION OF THE PARENT COMPANY AND THE OPERATING PARTNERSHIP - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 a ft² managementCompany parcel property | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of real estate properties | property | 77 |
Area of real estate property | 13,578,188 |
Number of management companies | managementCompany | 7 |
Wholly Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Area of real estate property | 13,600,000 |
Parent Company | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Area of undeveloped parcels of land | a | 159.9 |
Area of additional undeveloped parcels of land with option to purchase | a | 55.1 |
Total potential development capacity | 11,900,000 |
Parent Company | Land Parcel One | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term (in years) | 99 years |
Parent Company | Land Parcel Two | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term (in years) | 99 years |
Wholly-owned Management Company Subsidiaries | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Area of real estate property | 23,000,000 |
Wholly-owned Management Company Subsidiaries | Wholly Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Area of real estate property | 13,600,000 |
Wholly-owned Management Company Subsidiaries | Partially Owned Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Area of real estate property | 9,400,000 |
Leashold Interest Land | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Lease agreement term (in years) | 99 years |
Leashold Interest Land | Parent Company | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of real estate properties | parcel | 1 |
Undeveloped parcels of land held | a | 0.8 |
Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 99.70% |
BRSCO | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
BMI | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
BPI | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
BBL | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
BPM | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
BBS | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
BGCS | BRANDYWINE OPERATING PARTNERSHIP, L.P. | Brandywine Operating Partnership LP | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Ownership in the operating partnership | 100% |
Unconsolidated Real Estate Ventures | Unconsolidated Properties | |
Organization of The Parent Company and The Operating Partnership [Line Items] | |
Number of real estate properties | property | 12 |
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) | Dec. 31, 2022 ft² property |
Real Estate Properties [Line Items] | |
Number of Properties | property | 77 |
Rentable Square Feet | ft² | 13,578,188 |
Core Properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 72 |
Rentable Square Feet | ft² | 12,791,041 |
Office properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 67 |
Rentable Square Feet | ft² | 11,848,707 |
Mixed-use properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 5 |
Rentable Square Feet | ft² | 942,334 |
Development property | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 2 |
Rentable Square Feet | ft² | 350,488 |
Redevelopment properties | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 3 |
Rentable Square Feet | ft² | 436,659 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Change in Depreciable Lives of Real Estate Investments (Details) - Service Life $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) | |
Real Estate Properties [Line Items] | ||
Number of properties that changed estimated useful lives (in years) | property | 7 | |
Depreciation expense | $ | $ 14.6 | $ 9.8 |
Building | ||
Real Estate Properties [Line Items] | ||
Property, plant, and equipment, estimated useful life | 12 | 35 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Assets | $ 3,874,505 | $ 3,846,196 |
Liabilities | 2,241,171 | 2,144,977 |
Variable Interest Entity | ||
Variable Interest Entity [Line Items] | ||
Assets | 47,300 | 46,500 |
Liabilities | $ 21,000 | $ 21,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Purchase Price Allocation and Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Construction in Progress [Line Items] | |
Expected lease-up periods | 4 months |
Minimum | Buildings and Improvements | |
Construction in Progress [Line Items] | |
Buildings and improvements useful life | 5 years |
Minimum | Tenant Improvements | |
Construction in Progress [Line Items] | |
Buildings and improvements useful life | 1 year |
Maximum | |
Construction in Progress [Line Items] | |
Expected lease-up periods | 12 months |
Maximum | Buildings and Improvements | |
Construction in Progress [Line Items] | |
Buildings and improvements useful life | 55 years |
Maximum | Tenant Improvements | |
Construction in Progress [Line Items] | |
Buildings and improvements useful life | 16 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of Real Estate Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Disposition of assets, holding period | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Costs (Details) | Dec. 31, 2022 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Deferred cost, amortization period | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Deferred cost, amortization period | 16 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 506,100 | $ 486,819 | $ 534,852 |
Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 470,851 | 451,519 | 513,504 |
Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 453,198 | 433,766 | 497,264 |
Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 353,387 | 343,924 | 393,178 |
Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 99,811 | 89,842 | 104,086 |
Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,582 | 5,377 | 4,868 |
Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 15,071 | 12,376 | 11,372 |
Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 24,132 | 26,444 | 18,580 |
Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 11,117 | 8,856 | 2,768 |
Philadelphia CBD | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 220,875 | 207,858 | 232,028 |
Philadelphia CBD | Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 218,078 | 204,848 | 229,619 |
Philadelphia CBD | Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 202,380 | 191,026 | 217,696 |
Philadelphia CBD | Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 151,034 | 149,441 | 166,286 |
Philadelphia CBD | Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 51,346 | 41,585 | 51,410 |
Philadelphia CBD | Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,308 | 2,064 | 1,146 |
Philadelphia CBD | Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 14,390 | 11,758 | 10,777 |
Philadelphia CBD | Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 287 | 893 | 927 |
Philadelphia CBD | Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,510 | 2,117 | 1,482 |
Pennsylvania Suburbs | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 128,940 | 124,566 | 141,613 |
Pennsylvania Suburbs | Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 128,551 | 124,256 | 141,162 |
Pennsylvania Suburbs | Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 128,541 | 124,106 | 140,995 |
Pennsylvania Suburbs | Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 116,926 | 113,748 | 128,044 |
Pennsylvania Suburbs | Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 11,615 | 10,358 | 12,951 |
Pennsylvania Suburbs | Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 10 | (9) | (12) |
Pennsylvania Suburbs | Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 0 | 159 | 179 |
Pennsylvania Suburbs | Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 35 | 34 | 39 |
Pennsylvania Suburbs | Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 354 | 276 | 412 |
Austin, Texas | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 96,329 | 101,680 | 102,982 |
Austin, Texas | Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 95,414 | 100,826 | 102,069 |
Austin, Texas | Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 93,789 | 97,395 | 98,489 |
Austin, Texas | Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 60,831 | 62,545 | 63,366 |
Austin, Texas | Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 32,958 | 34,850 | 35,123 |
Austin, Texas | Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,264 | 3,322 | 3,531 |
Austin, Texas | Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 361 | 109 | 49 |
Austin, Texas | Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 486 | 452 | 689 |
Austin, Texas | Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 429 | 402 | 224 |
Metropolitan Washington, D.C. | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 21,899 | 19,865 | 40,223 |
Metropolitan Washington, D.C. | Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 18,053 | 13,173 | 33,509 |
Metropolitan Washington, D.C. | Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 17,969 | 13,056 | 33,374 |
Metropolitan Washington, D.C. | Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 16,686 | 12,410 | 29,830 |
Metropolitan Washington, D.C. | Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,283 | 646 | 3,544 |
Metropolitan Washington, D.C. | Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 0 | 0 | 0 |
Metropolitan Washington, D.C. | Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 84 | 117 | 135 |
Metropolitan Washington, D.C. | Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 3,723 | 6,548 | 6,541 |
Metropolitan Washington, D.C. | Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 123 | 144 | 173 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 14,711 | 14,015 | 13,469 |
Other | Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 12,685 | 10,913 | 10,900 |
Other | Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 12,449 | 10,680 | 10,465 |
Other | Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 9,805 | 8,020 | 8,064 |
Other | Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 2,644 | 2,660 | 2,401 |
Other | Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 0 | 0 | 203 |
Other | Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 236 | 233 | 232 |
Other | Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 1,988 | 3,077 | 2,560 |
Other | Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 38 | 25 | 9 |
Corporate | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 23,346 | 18,835 | 4,537 |
Corporate | Rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | (1,930) | (2,497) | (3,755) |
Corporate | Total lease revenue | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | (1,930) | (2,497) | (3,755) |
Corporate | Fixed rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | (1,895) | (2,240) | (2,412) |
Corporate | Variable rent | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | (35) | (257) | (1,343) |
Corporate | Amortization of deferred market rents | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 0 | 0 | 0 |
Corporate | Daily parking & hotel flexible stay | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 0 | 0 | 0 |
Corporate | Third party management fees, labor reimbursement and leasing | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | 17,613 | 15,440 | 7,824 |
Corporate | Other income | |||
Disaggregation of Revenue [Line Items] | |||
Total revenue | $ 7,663 | $ 5,892 | $ 468 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Billions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Contingency [Line Items] | ||
Tax basis of assets, cost for income tax purposes | $ 3.2 | $ 3.1 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||
Income Tax Contingency [Line Items] | ||
Tax basis of assets, cost for income tax purposes | $ 3.2 | $ 3.1 |
REAL ESTATE INVESTMENTS - Sched
REAL ESTATE INVESTMENTS - Schedule of Gross Carrying Value of Operating Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 403,998 | $ 410,144 |
Building and improvements | 2,760,357 | 2,653,492 |
Tenant improvements | 452,885 | 408,966 |
Total | $ 3,617,240 | $ 3,472,602 |
REAL ESTATE INVESTMENTS - Sch_2
REAL ESTATE INVESTMENTS - Schedule of Capitalized Construction Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Internal direct construction costs | $ 9,332 | $ 7,902 | $ 8,366 |
Capitalized interest | 4,700 | 7,000 | 4,600 |
Development | |||
Property, Plant and Equipment [Line Items] | |||
Internal direct construction costs | 5,343 | 4,815 | 4,802 |
Redevelopment | |||
Property, Plant and Equipment [Line Items] | |||
Internal direct construction costs | 1,484 | 1,170 | 543 |
Tenant Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Internal direct construction costs | $ 2,505 | $ 1,917 | $ 3,021 |
REAL ESTATE INVESTMENTS - Sch_3
REAL ESTATE INVESTMENTS - Schedule of Acquired Properties (Details) $ in Thousands | 12 Months Ended | |||||||||
Apr. 29, 2022 USD ($) | Jan. 21, 2022 USD ($) a | Nov. 30, 2020 USD ($) ft² | Nov. 05, 2020 USD ($) ft² | Feb. 27, 2020 USD ($) a | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 29, 2022 ft² | Apr. 29, 2022 a | |
Business Acquisition [Line Items] | ||||||||||
Purchase price | $ 3,446 | $ 0 | $ 41,950 | |||||||
Area of real estate property | ft² | 13,578,188 | |||||||||
Land | 631 Park Avenue | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Land area | a | 3.3 | |||||||||
Purchase price | $ 3,650 | |||||||||
Land | 3151 Market Street | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Land area | 0.8 | 0.8 | ||||||||
Purchase price | $ 27,349 | |||||||||
Lease agreement term (in years) | 99 years | |||||||||
Prepaid Rent | $ 19,500 | |||||||||
Area of real estate property | ft² | 500,000 | |||||||||
Land | 155 King of Prussia Road | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Land area | a | 7.75 | |||||||||
Purchase price | $ 11,250 | |||||||||
Land | Schuylkill Yards Project | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of real estate property | ft² | 200,000 | |||||||||
Operating Lease Costs, Capitalized | $ 7,800 | |||||||||
Office | 1505-11 Race Street | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Rentable Square Feet | ft² | 119,763 | |||||||||
Purchase price | $ 9,700 | |||||||||
Office | 250 King of Prussia Road | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Rentable Square Feet | ft² | 169,843 | |||||||||
Purchase price | $ 20,250 |
REAL ESTATE INVESTMENTS - Sch_4
REAL ESTATE INVESTMENTS - Schedule of Asset Acquisition (Details) - 1505-11 Race Street $ in Thousands | Nov. 05, 2020 USD ($) |
Schedule of Investments [Line Items] | |
Building, land and improvements | $ 9,723 |
Intangible assets acquired | 2,422 |
Below market lease liabilities assumed | (2,193) |
Total unencumbered acquisition value | $ 9,952 |
Below Market Lease | |
Schedule of Investments [Line Items] | |
Weighted average amortization period | 1 year 6 months |
Intangible Assets Acquired | |
Schedule of Investments [Line Items] | |
Weighted average amortization period | 1 year 6 months |
REAL ESTATE INVESTMENTS - Sch_5
REAL ESTATE INVESTMENTS - Schedule of Office Properties Sold (Details) $ in Thousands | 12 Months Ended | ||||||||||||||||||
Nov. 22, 2022 USD ($) ft² | Sep. 30, 2022 USD ($) | Jul. 29, 2022 USD ($) a | Jul. 14, 2022 USD ($) a ft² | Jun. 28, 2022 USD ($) | Apr. 14, 2022 USD ($) a | Jan. 20, 2022 USD ($) a | Sep. 08, 2021 USD ($) ft² | Jul. 06, 2021 USD ($) ft² | Feb. 02, 2021 USD ($) a | Dec. 21, 2020 USD ($) ft² property | Jul. 21, 2020 USD ($) ft² property | Jun. 15, 2020 USD ($) a | Mar. 19, 2020 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 28, 2022 ft² | Jun. 28, 2022 a | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Gain (Loss) on Sale | $ 17,677 | $ 142 | $ 289,461 | ||||||||||||||||
Sale of ownership interest percentage | 60% | ||||||||||||||||||
Area of real estate property | ft² | 13,578,188 | ||||||||||||||||||
Mid-Atlantic Office Portfolio | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Variable consideration | $ 4,100 | ||||||||||||||||||
Mid-Atlantic Office Portfolio | Minimum | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Variable consideration holdback term (in months) | 6 months | ||||||||||||||||||
Mid-Atlantic Office Portfolio | Maximum | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Variable consideration holdback term (in months) | 9 months | ||||||||||||||||||
Commerce Square | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Sales Price | $ 115,000 | ||||||||||||||||||
Sale of ownership interest percentage | 30% | ||||||||||||||||||
Value of assets disposed of | $ 600,000 | ||||||||||||||||||
Net gain on disposition of real estate | $ 271,900 | ||||||||||||||||||
Office | 200 Barr Harbor Drive | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Rentable Square Feet | ft² | 86,000 | ||||||||||||||||||
Sales Price | $ 30,500 | ||||||||||||||||||
Gain (Loss) on Sale | $ 8,740 | ||||||||||||||||||
Office | Gibbsboro Portfolio | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Gain (Loss) on Sale | $ 100 | ||||||||||||||||||
Office | Mid-Atlantic Office Portfolio | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Rentable Square Feet | ft² | 1,128,645 | ||||||||||||||||||
Sales Price | $ 192,943 | ||||||||||||||||||
Gain (Loss) on Sale | $ 15,164 | ||||||||||||||||||
Number of properties sold | property | 12 | ||||||||||||||||||
Office | Mid-Atlantic Office Portfolio | Pennsylvania | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of properties sold | property | 9 | ||||||||||||||||||
Office | Mid-Atlantic Office Portfolio | Maryland | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of properties sold | property | 3 | ||||||||||||||||||
Office | Commerce Square | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Rentable Square Feet | ft² | 1,896,142 | 1,896,142 | |||||||||||||||||
Sales Price | $ 115,000 | ||||||||||||||||||
Gain (Loss) on Sale | $ 271,905 | ||||||||||||||||||
Number of properties sold | property | 2 | ||||||||||||||||||
Office | 52 East Swedesford Road | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Rentable Square Feet | ft² | 131,077 | ||||||||||||||||||
Sales Price | $ 18,000 | ||||||||||||||||||
Gain (Loss) on Sale | $ 2,336 | ||||||||||||||||||
Land | 11501 Burnet Road | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | a | 4.7 | ||||||||||||||||||
Sales Price | $ 32,513 | ||||||||||||||||||
Gain (Loss) on Sale | $ 8,340 | ||||||||||||||||||
Land | 3151 Market Street | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Area of real estate property | ft² | 500,000 | ||||||||||||||||||
Land | Gibbsboro Portfolio | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Gain (Loss) on Sale | $ 700 | ||||||||||||||||||
Land | 25 M Street | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | a | 0.8 | ||||||||||||||||||
Sales Price | $ 29,675 | ||||||||||||||||||
Gain (Loss) on Sale | $ 400 | $ 3,836 | |||||||||||||||||
Land | Gateway G & H | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | a | 10 | ||||||||||||||||||
Sales Price | $ 1,600 | ||||||||||||||||||
Gain (Loss) on Sale | $ 897 | ||||||||||||||||||
Land | 1100 Lenox Drive | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | ft² | 5 | ||||||||||||||||||
Sales Price | $ 2,575 | ||||||||||||||||||
Gain (Loss) on Sale | $ 68 | ||||||||||||||||||
Land | 2100-2200 Lenox Drive | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | ft² | 35.2 | ||||||||||||||||||
Sales Price | $ 8,900 | ||||||||||||||||||
Gain (Loss) on Sale | $ 842 | ||||||||||||||||||
Land | Keith Valley | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | a | 14 | ||||||||||||||||||
Sales Price | $ 4,000 | ||||||||||||||||||
Gain (Loss) on Sale | $ 201 | ||||||||||||||||||
Leasehold Interest | 3151 Market Street | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | a | 0.8 | ||||||||||||||||||
Sales Price | $ 30,394 | ||||||||||||||||||
Gain (Loss) on Sale | $ 2,583 | ||||||||||||||||||
Lease agreement term (in years) | 99 years | ||||||||||||||||||
Leasehold Interest | 3025 JFK Venture | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | a | 1 | ||||||||||||||||||
Sales Price | $ 34,800 | ||||||||||||||||||
Gain (Loss) on Sale | $ 2,000 | ||||||||||||||||||
Office/Land | Gibbsboro Portfolio | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Land area | 42,809 | 4 | |||||||||||||||||
Sales Price | $ 4,100 | ||||||||||||||||||
Gain (Loss) on Sale | $ 831 |
REAL ESTATE INVESTMENTS - Dispo
REAL ESTATE INVESTMENTS - Dispositions (Narrative) (Details) $ in Thousands | 12 Months Ended | |||||||||
Feb. 23, 2023 USD ($) ft² | Jul. 14, 2022 USD ($) a ft² | Feb. 02, 2021 USD ($) | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 23, 2021 USD ($) | Feb. 02, 2021 ft² | Feb. 02, 2021 a | Nov. 05, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Area of real estate property | ft² | 13,578,188 | |||||||||
Investment in real estate ventures, at equity | $ 532,224 | $ 411,110 | ||||||||
Net gain on sale of undepreciated real estate | 8,007 | 2,903 | $ 201 | |||||||
Net gain on disposition of real estate | $ 17,677 | $ 142 | $ 289,461 | |||||||
Land | 3151 Market Street | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Area of real estate property | ft² | 500,000 | |||||||||
Land | 3151 Market Street | Subsequent Event | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Area of real estate property | ft² | 200,000 | |||||||||
Leasehold Interest | 3151 Market Street | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Lease agreement term (in years) | 99 years | |||||||||
Land area | a | 0.8 | |||||||||
Sales Price | $ 30,394 | |||||||||
Net gain on disposition of real estate | $ 2,583 | |||||||||
Leasehold Interest | 3151 Market Street | Subsequent Event | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sales Price | $ 7,800 | |||||||||
Net gain on disposition of real estate | $ 800 | |||||||||
3025 JFK Venture | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Lease agreement term (in years) | 99 years | |||||||||
Land area | 1 | 1 | ||||||||
Investment in real estate ventures, at equity | $ 34,800 | $ 34,800 | ||||||||
Net gain on sale of undepreciated real estate | $ 2,000 | |||||||||
1505-11 Race Street | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Transaction costs capitalized | $ 300 |
REAL ESTATE INVESTMENTS - 3151
REAL ESTATE INVESTMENTS - 3151 Market Venture (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Jul. 14, 2022 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Investments [Line Items] | ||||
Area of real estate property | ft² | 13,578,188 | |||
Net gain on disposition of real estate | $ 17,677 | $ 142 | $ 289,461 | |
Land | 3151 Market Street | ||||
Schedule of Investments [Line Items] | ||||
Area of real estate property | ft² | 500,000 | |||
Leasehold Interest | 3151 Market Street | ||||
Schedule of Investments [Line Items] | ||||
Lease agreement term (in years) | 99 years | |||
Sales Price | $ 30,394 | |||
Net gain on disposition of real estate | $ 2,583 |
REAL ESTATE INVESTMENTS - Held
REAL ESTATE INVESTMENTS - Held for Use Impairment and Sale (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) property | Jan. 20, 2022 USD ($) | Dec. 31, 2021 USD ($) a parcel | Dec. 31, 2020 USD ($) a parcel | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment of properties held for use | $ 4,700 | |||
Assets held for sale, net | $ 0 | $ 562 | ||
Number of real estate properties | property | 77 | |||
Held for Sale Properties Included in Continuing Operations | Other Land | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, net | $ 600 | |||
Aggregate sales price | $ 1,600 | |||
Held for Sale Properties Included in Continuing Operations | Other Land | OTHER | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of land parcels | parcel | 2 | |||
Land area | a | 10 | |||
Held for Sale Properties Included in Continuing Operations | Land Held For Development | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets held for sale, net | $ 7,300 | |||
Held for Sale Properties Included in Continuing Operations | Land Held For Development | OTHER | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Land area | a | 35.2 | |||
Number of real estate properties | parcel | 2 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Narrative (Details) $ in Thousands, ft² in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) ft² a property apartment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | property | 77 | ||
Investment balance | $ | $ 532,224 | $ 411,110 | |
Accounts receivable | $ | 11,003 | 11,875 | |
Real Estate Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable | $ | 2,900 | 2,500 | |
Management Fees | Real Estate Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Service and other revenue | $ | 8,200 | 8,100 | $ 4,700 |
Leasing Commission Income | Real Estate Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Service and other revenue | $ | 2,500 | $ 3,800 | $ 1,100 |
Unconsolidated Real Estate Ventures | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment balance | $ | $ 532,200 | ||
Unconsolidated Real Estate Ventures | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 15% | ||
Unconsolidated Real Estate Ventures | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 70% | ||
Unconsolidated Real Estate Ventures | Office Properties | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of unconsolidated investments in real estate ventures | property | 5 | ||
Rentable square feet | ft² | 9.1 | ||
Unconsolidated Real Estate Ventures | Other Liabilities | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment balance | $ | $ (35,400) | ||
Unconsolidated Real Estate Ventures | Unconsolidated Properties | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | property | 12 | ||
Number of real estate properties with negative investment balances | property | 1 | ||
Unconsolidated Real Estate Ventures | Land Held For Development | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of unconsolidated investments in real estate ventures | property | 2 | ||
Land area | a | 1.4 | ||
Unconsolidated Real Estate Ventures | Land Under Active Development | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of unconsolidated investments in real estate ventures | property | 4 | ||
Land area | a | 7.5 | ||
Unconsolidated Real Estate Ventures | Mixed Use Tower | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of unconsolidated investments in real estate ventures | property | 1 | ||
Rentable square feet | ft² | 0.2 | ||
Number of property units | apartment | 250 |
INVESTMENT IN UNCONSOLIDATED _4
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Schedule of Investment in Real Estate Ventures and Share of Real Estate Ventures' Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | Feb. 02, 2021 | Dec. 21, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Carrying Amount | $ 532,224 | $ 411,110 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (22,016) | (26,697) | $ (18,584) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 1,204,779 | 961,509 | ||||
Commerce Square Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 70% | |||||
Carrying Amount | $ 238,105 | 247,798 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (12,128) | (15,501) | (9,150) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 206,737 | 213,069 | ||||
Mid-Atlantic Office Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 40% | 40% | ||||
Carrying Amount | $ 31,005 | 31,680 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | 412 | 932 | 96 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 128,904 | 123,015 | ||||
Brandywine - AI Venture LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 50% | |||||
Carrying Amount | $ 0 | 0 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | 0 | (721) | 185 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 0 | 0 | ||||
Herndon Innovation Center Metro Portfolio Venture, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 15% | |||||
Carrying Amount | $ 15,304 | 15,844 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (536) | (174) | (358) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 207,302 | 207,302 | ||||
MAP Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 50% | |||||
Carrying Amount | $ (35,411) | (24,396) | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (8,340) | (8,683) | (6,570) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 182,053 | 184,263 | ||||
Cira Square | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 20% | |||||
Carrying Amount | $ 27,815 | 0 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (985) | 0 | 0 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 257,700 | 0 | ||||
4040 Wilson Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 50% | |||||
Carrying Amount | $ 29,633 | 31,059 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (1,211) | (2,258) | (2,162) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 145,070 | 145,000 | ||||
1919 Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 50% | 50% | ||||
Carrying Amount | $ 0 | 13,791 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | 1,392 | 427 | 59 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 0 | 88,860 | ||||
3025 JFK Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 55% | 55% | ||||
Carrying Amount | $ 57,630 | 56,370 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (35) | (118) | 0 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 60,118 | 0 | ||||
JBG 51 N Street | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 70% | |||||
Carrying Amount | $ 21,208 | 21,213 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (382) | (402) | (457) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 0 | 0 | ||||
JBG 1250 First Street Office | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 70% | |||||
Carrying Amount | $ 17,759 | 17,751 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (195) | (199) | (227) | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 0 | 0 | ||||
3151 Market Street Venture | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 55% | |||||
Carrying Amount | $ 63,751 | 0 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | (8) | 0 | 0 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 0 | 0 | ||||
One Uptown - Office | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 50% | |||||
Carrying Amount | $ 34,980 | 0 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | 0 | 0 | 0 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 16,895 | 0 | ||||
One Uptown - Multifamily | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Percentage | 50% | |||||
Carrying Amount | $ 30,445 | 0 | ||||
Company's Share of unconsolidated real estate venture Income (Loss) | 0 | 0 | $ 0 | |||
Unconsolidated Real Estate Venture Debt at 100%, gross | $ 0 | $ 0 |
INVESTMENT IN UNCONSOLIDATED _5
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Financial Position of Real Estate Ventures (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||
Net property | $ 2,904,788 | $ 2,955,068 | ||
Other assets | 78,667 | 133,094 | ||
Other liabilities | 52,331 | 48,683 | ||
Equity | 1,633,334 | 1,701,219 | $ 1,804,648 | $ 1,688,303 |
Investment In Nonconsolidated Real Estate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net property | 2,117,226 | 1,563,263 | ||
Other assets | 506,213 | 434,687 | ||
Other liabilities | 446,101 | 331,947 | ||
Debt, net | 1,198,213 | 956,668 | ||
Equity | $ 979,125 | $ 709,335 |
INVESTMENT IN UNCONSOLIDATED _6
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Schedule of Results of Operations of Real Estate Ventures with Interests (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Revenue | $ 506,100 | $ 486,819 | $ 534,852 |
Operating expenses | (412,054) | (396,569) | (424,027) |
Interest expense, net | (68,764) | (62,617) | (73,911) |
Depreciation and amortization | (177,984) | (178,105) | (188,283) |
Provision for impairment | (4,663) | 0 | 0 |
Net income | 53,992 | 12,366 | 307,326 |
Equity in loss of unconsolidated real estate ventures | (22,016) | (26,697) | (18,584) |
Investment In Nonconsolidated Real Estate | |||
Schedule of Equity Method Investments [Line Items] | |||
Revenue | 244,981 | 214,792 | 150,276 |
Operating expenses | (124,608) | (117,273) | (85,812) |
Interest expense, net | (49,007) | (30,569) | (22,661) |
Depreciation and amortization | (103,378) | (97,147) | (70,805) |
Provision for impairment | 0 | (1,393) | 0 |
Net income | (32,012) | (31,590) | (29,002) |
Company's share of net loss | (21,594) | (25,972) | (18,540) |
Basis adjustments and other | $ (422) | $ (725) | $ (44) |
INVESTMENT IN UNCONSOLIDATED _7
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Schedule of Maturities of Long-term Debt (Details) - Unconsolidated Real Estate Ventures $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule of Equity Method Investments [Line Items] | |
2023 | $ 388,789 |
2024 | 593,907 |
2025 | 60,118 |
2026 | 161,965 |
2027 | 0 |
Thereafter | 0 |
Total principal payments | 1,204,779 |
Net deferred financing costs | (6,837) |
Net original issue premium | 271 |
Outstanding indebtedness | $ 1,198,213 |
INVESTMENT IN UNCONSOLIDATED _8
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - One Uptown Ventures (Details) $ in Thousands | 12 Months Ended | ||||
Jul. 29, 2022 USD ($) numberOfLoan | Jun. 30, 2022 | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 01, 2021 USD ($) ft² property apartment | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in real estate ventures, at equity | $ 532,224 | $ 411,110 | |||
Area of real estate property | ft² | 13,578,188 | ||||
Unsecured Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Long-term debt, gross | $ 1,971,411 | 1,851,610 | |||
Unsecured Debt | $600 million Unsecured Credit Facility | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Long-term debt, gross | $ 88,500 | $ 23,000 | |||
Unsecured Debt | Daily SOFR Adjustment | $600 million Unsecured Credit Facility | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Basis spread on interest rate (as percent) | 0.10% | 0.10% | |||
One Uptown Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in real estate ventures, at equity | $ 335,600 | ||||
Number of apartment residences | apartment | 341 | ||||
Joint venture, funding committed by other party | $ 64,500 | ||||
Ownership percentage | 50% | ||||
One Uptown Venture | Carry Guarantee | Loans Payable | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Guarantee obligations, payment (as percent) | 30% | ||||
One Uptown Venture | Limited Payment Guarantee | Loans Payable | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Guarantee obligations, payment (as percent) | 15% | ||||
One Uptown Venture | Construction Loans | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of loans closed | numberOfLoan | 2 | ||||
Long-term debt, gross | $ 121,700 | ||||
One Uptown Venture | Construction Loans | Multifamily Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Long-term debt, gross | $ 85,000 | ||||
One Uptown Venture | Construction Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Basis spread on interest rate (as percent) | 3% | ||||
One Uptown Venture | Construction Loans | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Multifamily Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Basis spread on interest rate (as percent) | 2.45% | ||||
One Uptown Venture | Preferred Stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50% | ||||
One Uptown Venture | Common Stock | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 50% | ||||
One Uptown Venture | Canyon Partners Real Estate | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Number of joint ventures | property | 2 | ||||
One Uptown Venture | Class A Workspace | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Area of real estate property | ft² | 348,000 | ||||
One Uptown Venture | Street Level Retail | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Area of real estate property | ft² | 15,000 |
INVESTMENT IN UNCONSOLIDATED _9
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 3151 Market Street Venture (Details) $ in Thousands | Dec. 31, 2022 USD ($) ft² | Jul. 14, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) |
Schedule of Equity Method Investments [Line Items] | |||
Area of real estate property | ft² | 13,578,188 | ||
Investment in real estate ventures, at equity | $ 532,224 | $ 411,110 | |
3151 Market Street | |||
Schedule of Equity Method Investments [Line Items] | |||
Area of real estate property | ft² | 417,000 | ||
Investment in real estate ventures, at equity | $ 308,000 | ||
3151 Market Street | Joint Venture With Unaffiliated Third Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in real estate ventures, at equity | $ 55,000 | ||
3151 Market Street | Joint Venture With Unaffiliated Third Party | Joint Venture With Unaffiliated Third Party | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 45% |
INVESTMENT IN UNCONSOLIDATED_10
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Cira Square (Details) $ in Thousands | 12 Months Ended | |||
Mar. 17, 2022 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Area of real estate property | ft² | 13,578,188 | |||
Purchase price | $ 3,446 | $ 0 | $ 41,950 | |
Cira Square REIT, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cost of equity method investment | $ 383,000 | |||
Ownership percentage | 20% | |||
Purchase price | $ 28,600 | |||
Interest rate, maximum | 6.75% | |||
Cira Square REIT, LLC | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Basis spread on interest rate (as percent) | 3.50% | |||
Cira Square REIT, LLC | Secured Debt | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Debt instrument, face amount | $ 257,700 | |||
Office Properties | Cira Square REIT, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Area of real estate property | ft² | 862,692 |
INVESTMENT IN UNCONSOLIDATED_11
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 4040 Wilson Venture (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 a ft² property | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | property | 77 | |
Area of real estate property | ft² | 13,578,188 | |
4040 Wilson Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of real estate properties | property | 1 | |
Area of real estate property | ft² | 225,000 | |
Land area | a | 250 | |
Ownership percentage | 50% | |
4040 Wilson Venture | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt instrument, interest rate | 5.70% | |
4040 Wilson Venture | Construction Loans | ||
Schedule of Equity Method Investments [Line Items] | ||
Long-term debt, gross | $ | $ 150 | |
4040 Wilson Venture | Secured Debt | Mortgage Loan Secured By Property | ||
Schedule of Equity Method Investments [Line Items] | ||
Long-term debt, gross | $ | $ 155 | |
4040 Wilson Venture | Secured Debt | Mortgage Loan Secured By Property | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Schedule of Equity Method Investments [Line Items] | ||
Basis spread on interest rate (as percent) | 1.80% |
INVESTMENT IN UNCONSOLIDATED_12
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Brandywine - AI Venture (Details) $ in Thousands | 12 Months Ended | ||||
Nov. 09, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) ft² | |
Schedule of Equity Method Investments [Line Items] | |||||
Net gain on real estate venture transactions | $ 26,718 | $ 2,973 | $ 75 | ||
Impairment of properties held for use | $ 4,700 | ||||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Equity in loss of unconsolidated real estate ventures | ||||
Fairview Properties | Brandywine - AI Venture LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Provision for impairment on assets held for sale | 1,400 | ||||
Impairment of properties held for use | $ 5,600 | ||||
Fairview Properties | Brandywine - AI Venture LLC | Brandywine Realty Trust | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Provision for impairment on assets held for sale | $ 700 | ||||
Impairment of properties held for use | $ 2,800 | ||||
Falls Church, Virginia | Brandywine - AI Venture LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Rentable square feet | ft² | 183,618 | 180,659 | |||
Aggregate sales price | $ 27,600 | ||||
Gross proceeds from sale | 12,600 | ||||
Net gain on real estate venture transactions | $ 3,000 | $ 2,200 | |||
Debt, net | $ 26,000 |
INVESTMENT IN UNCONSOLIDATED_13
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 3025 JFK Venture (Details) $ in Thousands | Feb. 02, 2021 a | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 23, 2021 USD ($) | Feb. 02, 2021 ft² | Feb. 02, 2021 | Feb. 02, 2021 USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||
Investment in real estate ventures, at equity | $ 532,224 | $ 411,110 | |||||
3025 JFK Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 55% | 55% | |||||
3025 JFK Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Lease agreement term (in years) | 99 years | ||||||
Land area | 1 | 1 | |||||
Investment in real estate ventures, at equity | $ 34,800 | $ 34,800 | |||||
Area of building to be constructed | ft² | 570,000 | ||||||
Estimated project cost | 287,300 | ||||||
Joint venture, funding committed by other party | $ 45,200 | ||||||
Ownership interest held by partner | 45% | ||||||
Construction loan amount | $ 186,700 | $ 186,700 | |||||
Joint venture, funding committed | $ 20,500 | ||||||
3025 JFK Venture | LIBOR | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 3.50% | ||||||
Interest rate, floor | 0.25% |
INVESTMENT IN UNCONSOLIDATED_14
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Mid-Atlantic Office JV (Details) $ in Thousands | 12 Months Ended | ||
Dec. 21, 2020 USD ($) ft² property | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | property | 77 | ||
Investment in real estate ventures, at equity | $ 532,224 | $ 411,110 | |
Mid-Atlantic Office JV Loan | |||
Schedule of Equity Method Investments [Line Items] | |||
Secured construction loan with total borrowing capacity | 18,500 | ||
Philadelphia CBD | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in real estate ventures, at equity | 387,301 | 317,959 | |
Metropolitan Washington, D.C. | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in real estate ventures, at equity | $ 83,903 | $ 85,867 | |
Mid-Atlantic Office Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 40% | 40% | |
Ownership percentage of total common equity | 20% | ||
Joint venture, funding from debt | $ 147,400 | ||
Proceeds from issuance of secured debt | $ 120,800 | ||
Mid-Atlantic Office Venture | Mid-Atlantic Office JV Loan | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Debt instrument, interest rate, stated percentage | 5.70% | ||
Mid-Atlantic Office Venture | Mid-Atlantic Office JV Loan | LIBOR | |||
Schedule of Equity Method Investments [Line Items] | |||
Basis spread on interest rate (as percent) | 3.15% | ||
Mid-Atlantic Office Venture | Preferred Equity Securities | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 25% | ||
Investment in real estate ventures, at equity | $ 20,000 | ||
Mid-Atlantic Office Venture | Common Equity Securities | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 15% | ||
Office Properties | Mid-Atlantic Office Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | property | 12 | ||
Rentable square feet | ft² | 1,128,645 | ||
Aggregate sales price | $ 192,900 | ||
Office Properties | Mid-Atlantic Office Venture | Philadelphia CBD | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | property | 9 | ||
Office Properties | Mid-Atlantic Office Venture | Metropolitan Washington, D.C. | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | property | 3 |
INVESTMENT IN UNCONSOLIDATED_15
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Commerce Square Venture (Details) | Dec. 31, 2022 property | Dec. 21, 2020 ft² | Jul. 21, 2020 ft² property |
Schedule of Equity Method Investments [Line Items] | |||
Sale of ownership interest percentage | 60% | ||
Number of real estate properties | 77 | ||
Commerce Square | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 70% | ||
Commerce Square | Preferred Equity Securities | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 32% | ||
Commerce Square | Common Equity Securities | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 38% | ||
Commerce Square | |||
Schedule of Equity Method Investments [Line Items] | |||
Sale of ownership interest percentage | 30% | ||
Commerce Square | Office Properties | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of real estate properties | 2 | ||
Rentable square feet | ft² | 1,896,142 | 1,896,142 |
INVESTMENT IN UNCONSOLIDATED_16
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - Hernadon Innovation Center Metro Portfolio Venture, LLC (Details) | Dec. 31, 2022 ft² property |
Schedule of Equity Method Investments [Line Items] | |
Area of real estate property | 13,578,188 |
Herndon Innovation Center Metro Portfolio Venture, LLC | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 15% |
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | |
Schedule of Equity Method Investments [Line Items] | |
Number of properties contributed to joint venture | property | 8 |
Area of real estate property | 1,293,197 |
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 15% |
Herndon Innovation Center Metro Portfolio Venture, LLC | Metropolitan Washington, D.C. - Office | Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 85% |
INVESTMENT IN UNCONSOLIDATED_17
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - MAP Venture (Details) - MAP Venture $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) ft² property | |
Schedule of Equity Method Investments [Line Items] | |
Ground lease annual payments | $ | $ 11.9 |
Ground lease annual rent expense increase percentage through November 2025 | 2.50% |
Ground lease annual rent expense increase after November 2025 | 2.50% |
Variable Interest Entity, Not Primary Beneficiary | |
Schedule of Equity Method Investments [Line Items] | |
Number of office properties owned | property | 58 |
Rentable square feet | ft² | 3,924,783 |
INVESTMENT IN UNCONSOLIDATED_18
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - 1919 Ventures (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Dec. 31, 2022 |
1919 Venture | Affiliated Entity | ||
Schedule of Equity Method Investments [Line Items] | ||
Repayments of debt | $ 44.4 | |
1919 Venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership percentage | 50% | 50% |
Gross sales | $ 83.2 | |
Gain on disposal | $ 26.7 |
INVESTMENT IN UNCONSOLIDATED_19
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES - JGB Ventures (Details) | Dec. 31, 2022 a joint_venture property |
Schedule of Equity Method Investments [Line Items] | |
Number of real estate properties | property | 77 |
JBG 51 N Street | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 70% |
Area owned by real estate venture of undeveloped parcels of land | 0.9 |
JBG 51 N Street | JBG Ventures | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 30% |
JBG 1250 First Street Office | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 70% |
Area owned by real estate venture of undeveloped parcels of land | 0.5 |
JBG 1250 First Street Office | JBG Ventures | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 30% |
JBG Ventures | |
Schedule of Equity Method Investments [Line Items] | |
Number of real estate properties | joint_venture | 2 |
DEBT AND PREFERRED EQUITY INV_2
DEBT AND PREFERRED EQUITY INVESTMENTS (Details) | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2020 USD ($) property | Dec. 31, 2018 USD ($) | Dec. 31, 2022 property | Sep. 03, 2021 USD ($) | |
Summary of Investment Holdings [Line Items] | ||||||
Number of real estate properties | property | 77 | |||||
Austin Preferred Equity Investment | Notes Receivable | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Note receivable | $ 50,000,000 | |||||
Number of real estate properties | property | 2 | |||||
Notes receivable, interest rate (as percent) | 9% | |||||
Extension option term (in years) | 1 year | |||||
Note receivable repurchased amount | $ 50,000,000 | |||||
Gain on financing receivable redemption | $ 2,800,000 | |||||
1919 Venture | ||||||
Summary of Investment Holdings [Line Items] | ||||||
Note receivable | $ 44,400,000 | |||||
Notes receivable, interest rate (as percent) | 4% | |||||
Debt, net | $ 44,400,000 | |||||
Repayment of notes receivable | $ 44,400,000 | |||||
Ownership Percentage | 50% | 50% |
LEASES - Schedule of Operating
LEASES - Schedule of Operating Lease Future Contractual Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessor, Operating Lease, Payments, Fiscal Year Maturity [Abstract] | |
2023 | $ 347,142 |
2024 | 344,641 |
2025 | 325,166 |
2026 | 304,102 |
2027 | 263,532 |
Thereafter | $ 1,041,686 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 lease property | |
Lessee, Lease, Description [Line Items] | |
Number of ground leases considered operating lease | lease | 6 |
Number of properties subject to ground leases | property | 3 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 7 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms (in years) | 62 years |
LEASES - Schedule of Lease Cost
LEASES - Schedule of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Fixed lease cost | $ 2,100 | $ 2,100 |
Variable lease cost | 67 | 43 |
Total | $ 2,167 | $ 2,143 |
Weighted-average remaining lease term (years) | 54 years 7 months 6 days | 55 years 2 months 12 days |
Weighted-average discount rate | 6.30% | 6.30% |
LEASES - Schedule of Operatin_2
LEASES - Schedule of Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Minimum Rent | ||
2023 | $ 1,263 | |
2024 | 1,305 | |
2025 | 1,321 | |
2026 | 1,338 | |
2027 | 1,355 | |
Thereafter | 106,437 | |
Total lease payments | 113,019 | |
Less: Imputed interest | 89,853 | |
Present value of operating lease liabilities | $ 23,166 | $ 22,962 |
DEFERRED COSTS - Schedule of De
DEFERRED COSTS - Schedule of Deferred Costs (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs [Line Items] | ||
Leasing costs, Total Cost | $ 155,457 | $ 143,895 |
Total Cost | 160,145 | 150,194 |
Leasing costs, Accumulated Amortization | (62,920) | (57,445) |
Total, Accumulated Amortization | (63,506) | (63,332) |
Leasing costs, Deferred Costs, net | 92,537 | 86,450 |
Deferred Costs, net | 96,639 | 86,862 |
Financing costs - Unsecured Credit Facility | ||
Deferred Costs [Line Items] | ||
Financing costs, Total Cost | 4,688 | 6,299 |
Financing costs, Accumulated Amortization | (586) | (5,887) |
Financing costs, Deferred Costs, net | $ 4,102 | $ 412 |
DEFERRED COSTS - Narrative (Det
DEFERRED COSTS - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Capitalized internal direct leasing costs | $ 3 | $ 2.1 | $ 1.6 |
INTANGIBLE ASSETS AND LIABILI_3
INTANGIBLE ASSETS AND LIABILITIES - Schedule of Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible assets, net: | ||
Total Cost | $ 56,213 | $ 73,029 |
Accumulated Amortization | (37,762) | (44,473) |
Total | 18,451 | 28,556 |
Intangible liabilities, net: | ||
Total Cost | 20,985 | 27,025 |
Accumulated Amortization | (10,663) | (14,044) |
Total | 10,322 | 12,981 |
In-place lease value | ||
Intangible assets, net: | ||
Total Cost | 55,715 | 72,376 |
Accumulated Amortization | (37,437) | (44,066) |
Total | 18,278 | 28,310 |
Tenant relationship value | ||
Intangible assets, net: | ||
Total Cost | 167 | 167 |
Accumulated Amortization | (104) | (97) |
Total | 63 | 70 |
Above market leases acquired | ||
Intangible assets, net: | ||
Total Cost | 331 | 486 |
Accumulated Amortization | (221) | (310) |
Total | $ 110 | $ 176 |
INTANGIBLE ASSETS AND LIABILI_4
INTANGIBLE ASSETS AND LIABILITIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tenant Move Outs Prior To End Of Lease Term | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets written off through accelerated amortization | $ 0.4 | $ 3.6 | $ 0.3 |
Tenant Move-Outs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets written off through accelerated amortization | $ 0.1 | $ 0.6 | $ 0.1 |
INTANGIBLE ASSETS AND LIABILI_5
INTANGIBLE ASSETS AND LIABILITIES - Schedule of Amortization for Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
2023 | $ 6,573 | |
2024 | 4,332 | |
2025 | 3,154 | |
2026 | 1,094 | |
2027 | 809 | |
Thereafter | 2,489 | |
Total | 18,451 | $ 28,556 |
Liabilities | ||
2023 | 1,516 | |
2024 | 1,305 | |
2025 | 1,029 | |
2026 | 739 | |
2027 | 623 | |
Thereafter | 5,110 | |
Total | $ 10,322 | $ 12,981 |
DEBT OBLIGATIONS - Schedule of
DEBT OBLIGATIONS - Schedule of Consolidated Debt Obligations (Details) - Unsecured Debt - USD ($) | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 20, 2022 | Dec. 13, 2022 | Nov. 23, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 1,971,411,000 | $ 1,851,610,000 | ||||
Plus: original issue premium (discount), net | 2,934,000 | 8,187,000 | ||||
Less: deferred financing costs | (9,307,000) | (6,211,000) | ||||
Total Debt Obligations | 1,965,038,000 | 1,853,586,000 | ||||
$600 million Unsecured Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 600,000,000 | |||||
Long-term debt, gross | $ 88,500,000 | 23,000,000 | ||||
$600 million Unsecured Credit Facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (as percent) | 1.15% | |||||
Unsecured Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 5.01% | |||||
Long-term debt, gross | $ 250,000,000 | $ 250,000,000 | $ 250,000,000 | 250,000,000 | ||
Basis spread on interest rate (as percent) | 1.30% | |||||
$350.0M 3.95% Guaranteed Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 350,000,000 | |||||
Debt instrument, interest rate, stated percentage | 3.95% | 3.95% | ||||
Long-term debt, gross | $ 54,301,000 | $ 295,700,000 | 350,000,000 | |||
Effective Interest Rate | 3.87% | |||||
$350.0M 4.10% Guaranteed Notes due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 350,000,000 | |||||
Debt instrument, interest rate, stated percentage | 4.10% | |||||
Long-term debt, gross | $ 350,000,000 | 350,000,000 | ||||
Effective Interest Rate | 3.78% | |||||
$450.0M 3.95% Guaranteed Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 450,000,000 | |||||
Debt instrument, interest rate, stated percentage | 3.95% | |||||
Long-term debt, gross | $ 450,000,000 | 450,000,000 | ||||
Effective Interest Rate | 4.03% | |||||
$350.0M 7.55% Guaranteed Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | ||||
Debt instrument, interest rate, stated percentage | 7.55% | |||||
Long-term debt, gross | $ 350,000,000 | 0 | ||||
Effective Interest Rate | 7.73% | |||||
$350.0M 4.55% Guaranteed Notes due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 350,000,000 | |||||
Debt instrument, interest rate, stated percentage | 4.55% | |||||
Long-term debt, gross | $ 350,000,000 | 350,000,000 | ||||
Effective Interest Rate | 4.30% | |||||
Indenture IA (Preferred Trust I) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 27,062,000 | 27,062,000 | ||||
Indenture IA (Preferred Trust I) | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (as percent) | 1.25% | |||||
Indenture IB (Preferred Trust I) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 25,774,000 | 25,774,000 | ||||
Indenture IB (Preferred Trust I) | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (as percent) | 1.25% | |||||
Indenture II (Preferred Trust II) | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, gross | $ 25,774,000 | $ 25,774,000 | ||||
Indenture II (Preferred Trust II) | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on interest rate (as percent) | 1.25% |
DEBT OBLIGATIONS - Narrative (D
DEBT OBLIGATIONS - Narrative (Details) | 12 Months Ended | |||||||
Dec. 20, 2022 USD ($) | Dec. 13, 2022 USD ($) | Jun. 30, 2022 USD ($) property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 20, 2023 USD ($) | Nov. 23, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Unsecured credit facility | $ 88,500,000 | $ 23,000,000 | ||||||
Proceeds from unsecured notes | 350,000,000 | 0 | $ 0 | |||||
Loss on early extinguishment of debt | 435,000 | 0 | $ 0 | |||||
Line of Credit | Unsecured Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Capitalized costs | $ 2,000,000 | |||||||
Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | 1,971,411,000 | 1,851,610,000 | ||||||
Unsecured Debt | Unsecured Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 250,000,000 | $ 250,000,000 | 250,000,000 | $ 250,000,000 | ||||
Basis spread on interest rate (as percent) | 1.30% | |||||||
Debt instrument, interest rate | 5.01% | |||||||
Unsecured Debt | Unsecured Term Loan | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 1.20% | |||||||
Unsecured Debt | Unsecured Term Loan | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0.80% | |||||||
Unsecured Debt | Unsecured Term Loan | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0% | |||||||
Unsecured Debt | Unsecured Term Loan | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 1.60% | |||||||
Unsecured Debt | Unsecured Term Loan | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0.60% | |||||||
Unsecured Debt | $600 million Unsecured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 88,500,000 | 23,000,000 | ||||||
Debt instrument, face amount | $ 600,000,000 | |||||||
Unsecured Debt | $600 million Unsecured Credit Facility | Daily SOFR Adjustment | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0.10% | 0.10% | ||||||
Unsecured Debt | Guaranteed Notes due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 350,000,000 | 0 | ||||||
Debt instrument, face amount | $ 350,000,000 | $ 350,000,000 | ||||||
Debt instrument, interest rate | 7.55% | |||||||
Percentage of face amount | 99.06% | |||||||
Unsecured term loan, net | $ 3,300,000 | |||||||
Proceeds from unsecured notes | $ 344,600,000 | |||||||
Unsecured Debt | Guaranteed Notes due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 295,700,000 | $ 54,301,000 | $ 350,000,000 | |||||
Debt instrument, face amount | $ 350,000,000 | |||||||
Debt instrument, interest rate | 3.95% | 3.95% | ||||||
Interest payable | $ 4,100,000 | |||||||
Loss on early extinguishment of debt | $ 400,000 | |||||||
Unsecured Debt | Guaranteed Notes due 2023 | Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest payable | $ 920,000 | |||||||
Redemption on remaining principal amount | $ 54,300,000 | |||||||
Letter of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 50,000,000 | |||||||
Financing costs - Unsecured Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured credit facility | $ 88,500,000 | |||||||
Long-term debt, weighted average interest rate | 3.04% | 1.21% | ||||||
Interest expense borrowings | $ 5,600,000 | $ 400,000 | ||||||
Financing costs - Unsecured Credit Facility | Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 600,000,000 | |||||||
Capitalized costs | 4,700,000 | |||||||
Line of credit facility, accordion feature | $ 500,000,000 | |||||||
Basis spread on interest rate (as percent) | 0.25% | |||||||
Financing costs - Unsecured Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 1.05% | |||||||
Financing costs - Unsecured Credit Facility | Line of Credit | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0.725% | |||||||
Financing costs - Unsecured Credit Facility | Line of Credit | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0% | |||||||
Financing costs - Unsecured Credit Facility | Line of Credit | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 1.40% | |||||||
Financing costs - Unsecured Credit Facility | Line of Credit | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on interest rate (as percent) | 0.40% | |||||||
Financing costs - Unsecured Credit Facility | Line of Credit | 2022 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, number of extensions | property | 2 | |||||||
Debt instrument, extension term duration | 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) - Unsecured Debt - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2023 | $ 54,301 | |
2024 | 350,000 | |
2025 | 0 | |
2026 | 88,500 | |
2027 | 700,000 | |
Thereafter | 778,610 | |
Total principal payments | 1,971,411 | $ 1,851,610 |
Net unamortized premiums/(discounts) | 2,934 | 8,187 |
Net deferred financing costs | (9,307) | (6,211) |
Debt, net | $ 1,965,038 | $ 1,853,586 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note receivable, Carrying Amount | $ 0 | $ 44,430 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Note receivable, Fair Value | 0 | 45,230 |
Unsecured notes payable | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deferred financing costs, net | 9,307 | 6,211 |
Unsecured notes payable | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unsecured notes payable, Carrying Amount | 1,549,760 | 1,502,368 |
Deferred financing costs, net | 7,500 | 5,800 |
Unsecured notes payable | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, Fair Value | 1,411,351 | 1,588,780 |
Variable rate debt | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Variable rate debt, Carrying Amount | 415,278 | 351,218 |
Deferred financing costs, net | 1,800 | 400 |
Variable rate debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, Fair Value | $ 386,988 | $ 344,754 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative, notional amount | $ 250,000 | $ 250,000 |
3.729% Interest Rate Swap Maturing June 30, 2027 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, notional amount | $ 250,000 | 0 |
Strike | 3.729% | |
Derivative asset, fair value, gross asset | $ 255 | 0 |
2.868% Interest Rate Swap Maturing October 8, 2022 | Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, notional amount | $ 0 | 250,000 |
Strike | 2.868% | |
Derivative liability, fair value, gross liability | $ 0 | $ (2,461) |
LIMITED PARTNERS' NONCONTROLL_2
LIMITED PARTNERS' NONCONTROLLING INTERESTS IN THE PARENT COMPANY (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Noncontrolling Interest [Abstract] | ||
Aggregate amount related to non-controlling interests classified within equity | $ 4.9 | $ 8.2 |
Settlement value of non controlling interest in operating partnership | $ 3.2 | $ 11.1 |
BENEFICIARIES' EQUITY OF THE _3
BENEFICIARIES' EQUITY OF THE PARENT COMPANY - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||
Net income | $ 53,992 | $ 12,366 | $ 307,326 |
Net income attributable to noncontrolling interests, Basic | (168) | (77) | (1,799) |
Net income attributable to noncontrolling interests, Diluted | (168) | (77) | (1,799) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (456) | (421) | (410) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (456) | (421) | (410) |
Net income attributable to Common Shareholders, Basic | 53,368 | 11,868 | 305,117 |
Net income attributable to common shareholders, Diluted | $ 53,368 | $ 11,868 | $ 305,117 |
Denominator | |||
Weighted average shares outstanding (in shares) | 171,491,369 | 170,878,185 | 171,926,079 |
Contingent securities/Share based compensation (in shares) | 834,277 | 1,395,055 | 390,997 |
Diluted weighted average shares outstanding (in shares) | 172,325,646 | 172,273,240 | 172,317,076 |
Earnings per Common Share: | |||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
BENEFICIARIES' EQUITY OF THE _4
BENEFICIARIES' EQUITY OF THE PARENT COMPANY - Narrative (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 06, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 03, 2019 | Jan. 10, 2017 | |
Class of Stock [Line Items] | |||||||
Amount of dividend declared | $ 32,800,000 | ||||||
Preferred shares authorized (in shares) | 20,000,000 | 20,000,000 | |||||
Preferred shares outstanding (in shares) | 0 | 0 | |||||
Authorized amount | $ 0 | $ 0 | $ 150,000,000 | ||||
Repurchased and retired (in shares) | 0 | 0 | 6,248,483 | 1,337,169 | |||
Share price (in usd per share) | $ 9.60 | $ 12.92 | |||||
Repurchased and retired, value | $ 59,999,000 | $ 17,300,000 | |||||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | |||||
Common shares remain available for issuance (in shares) | 0 | ||||||
Offering Program | |||||||
Class of Stock [Line Items] | |||||||
Common stock, shares authorized (in shares) | 16,000,000 | ||||||
Common shares issued under offering program (in shares) | 0 | 0 | |||||
Commerce Square | |||||||
Class of Stock [Line Items] | |||||||
Units issued to acquire noncontrolling interest (in shares) | 226,695 | ||||||
Percent of noncontrolling interest acquired | 1% | ||||||
Dividend Declared | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared, amount per share (in usd 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 | 981,634 |
PARTNERS' EQUITY OF THE PAREN_3
PARTNERS' EQUITY OF THE PARENT COMPANY - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator | |||
Net income | $ 53,992 | $ 12,366 | $ 307,326 |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (456) | (421) | (410) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | $ (456) | $ (421) | $ (410) |
Denominator | |||
Weighted average shares outstanding (in shares) | 171,491,369 | 170,878,185 | 171,926,079 |
Contingent securities/Share based compensation (in shares) | 834,277 | 1,395,055 | 390,997 |
Diluted weighted average shares outstanding (in shares) | 172,325,646 | 172,273,240 | 172,317,076 |
Earnings per Common Partnership Unit: | |||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||
Numerator | |||
Net income | $ 53,992 | $ 12,366 | $ 307,326 |
Net income attributable to noncontrolling interests | 2 | 3 | (20) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Basic | (456) | (421) | (410) |
Nonforfeitable dividends allocated to unvested restricted shareholders, Diluted | (456) | (421) | (410) |
Net income attributable to common unitholders, Basic | 53,538 | 11,948 | 306,896 |
Net income attributable to common unitholders, Diluted | $ 53,538 | $ 11,948 | $ 306,896 |
Denominator | |||
Weighted average shares outstanding (in shares) | 172,036,481 | 171,770,843 | 172,907,713 |
Contingent securities/Share based compensation (in shares) | 834,277 | 1,395,055 | 390,997 |
Diluted weighted average shares outstanding (in shares) | 172,870,758 | 173,165,898 | 173,298,710 |
Earnings per Common Partnership Unit: | |||
Net income attributable to common shareholders, Basic (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
Net income attributable to common shareholders, Diluted (in dollars per share) | $ 0.31 | $ 0.07 | $ 1.77 |
PARTNERS' EQUITY OF THE PAREN_4
PARTNERS' EQUITY OF THE PARENT COMPANY - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 06, 2022 USD ($) $ / shares | Dec. 31, 2022 class_of_units $ / shares shares | Dec. 31, 2021 $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2019 USD ($) $ / shares shares | |
Earnings Per Common Partnership Unit [Line Items] | |||||
Number of classes of partnership units | class_of_units | 2 | ||||
Amount of dividend declared | $ | $ 32,800 | ||||
Repurchased and retired (in shares) | 0 | 0 | 6,248,483 | 1,337,169 | |
Share price (in usd per share) | $ / shares | $ 9.60 | $ 12.92 | |||
Repurchased and retired, value | $ | $ 59,999 | $ 17,300 | |||
Common stock, par or stated value per share (in usd per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Commerce Square | |||||
Earnings Per Common Partnership Unit [Line Items] | |||||
Percent of noncontrolling interest acquired | 1% | ||||
Shelf Registration | |||||
Earnings Per Common Partnership Unit [Line Items] | |||||
Number of shares issued (in shares) | 226,695 | ||||
Dividend Declared | |||||
Earnings Per Common Partnership Unit [Line Items] | |||||
Dividends payable (in dollars per share) | $ / shares | $ 0.19 | ||||
Class A Units | |||||
Earnings Per Common Partnership Unit [Line Items] | |||||
Redeemable limited partnership unit price (in dollars per share) | $ / shares | $ 6.15 | $ 13.42 | $ 11.91 | ||
Limited partners' capital account, units outstanding (in units) | 516,467 | 823,983 | 981,634 | ||
BRANDYWINE OPERATING PARTNERSHIP, L.P. | |||||
Earnings Per Common Partnership Unit [Line Items] | |||||
Preferred units, outstanding (in units) | 0 | 0 | |||
Repurchase program, number of mirror unit of operating partnership retired for each common share repurchased | 1 |
SHARE BASED COMPENSATION, 401_3
SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION - Narrative (Details) | 12 Months Ended | ||||
Mar. 03, 2022 installment shares | Feb. 01, 2022 $ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Defined contribution plan, maximum annual contribution per employee, percent | 100% | ||||
Defined contribution plan, employer discretionary contribution amount | $ 400,000 | $ 400,000 | $ 500,000 | ||
Number of vesting installments | installment | 3 | ||||
Accelerated vesting period (in years) | 1 year | ||||
Number of shares to be issued under deferred compensation plan included in total shares outstanding | shares | 1,200,000 | 1,200,000 | |||
Restricted Share Rights Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted share rights outstanding (in shares) | shares | 553,894 | 474,978 | |||
Unrecognized compensation expenses | $ 1,900,000 | ||||
Weighted average period over which options will be recognized | 10 months 17 days | ||||
Share-based compensation expense | $ 4,500,000 | $ 4,100,000 | 4,300,000 | ||
Share-based compensation expense, capitalized | $ 700,000 | 500,000 | 400,000 | ||
Granted (in shares) | shares | 258,427 | 306,555 | |||
Number of restricted share right will get settled for common share | shares | 1 | ||||
Accumulated service period for voluntary termination (in years) | 15 years | ||||
Restricted Share Rights Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 1 year | ||||
Restricted Share Rights Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | 3 years | |||
Restricted Performance Share Units Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period (in years) | 3 years | ||||
Unrecognized compensation expenses | $ 7,500,000 | ||||
Weighted average period over which options will be recognized | 1 year 3 months 18 days | ||||
Share-based compensation expense | $ 6,200,000 | 4,300,000 | 3,000,000 | ||
Share-based compensation expense, capitalized | $ 1,100,000 | $ 500,000 | $ 400,000 | ||
Common shares issued for share based compensation | shares | 277,061 | ||||
Dividends payable (in dollars per share) | $ / shares | $ 0.19 | ||||
Restricted Performance Share Units Plan | Executive Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted share rights outstanding (in shares) | shares | 1,196,256 | 688,216 | |||
Granted (in shares) | shares | 516,852 | ||||
Performance earning potential (as percent) | 200% | ||||
Outperformance feature measurement term (in years) | 3 years | ||||
Additional vesting period (in days) | 366 days | ||||
Restricted Performance Share Units Plan | Executive Officers | 2022 Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 100,000 | ||||
Awards issuable under outperformance feature (in shares) | shares | 406,179 | ||||
Restricted Performance Share Units Plan | Executive Officers | 2021 Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 0 | ||||
Awards issuable under outperformance feature (in shares) | shares | 388,840 | ||||
Restricted Performance Share Units Plan | Executive Officers | 2020 Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 0 | ||||
Awards issuable under outperformance feature (in shares) | shares | 316,236 | ||||
Restricted Performance Share Units Plan | Non-Officer Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted share rights outstanding (in shares) | shares | 48,128 | ||||
Employee Share Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 20,000 | $ 100,000 | $ 100,000 | ||
Share-based compensation, percentage of closing price | 85% | ||||
Maximum participant contribution, percentage of compensation | 20% | ||||
Maximum participant contribution, dollar amount | $ 50,000 | ||||
Aggregate share-based awards awarded to executives | shares | 1,250,000 | ||||
Stock issued during period, value, employee stock purchase plan | $ 600,000 | $ 600,000 | $ 500,000 | ||
Share-based compensation arrangement by share-based payment award, discount from market price, purchase | 15% |
SHARE BASED COMPENSATION, 401_4
SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION - Schedule of Company's Restricted Share Activity (Details) - Restricted Share Rights Awards - $ / shares | 12 Months Ended | |
Mar. 03, 2022 | Dec. 31, 2022 | |
Shares | ||
Beginning balance (in shares) | 474,978 | |
Granted (in shares) | 258,427 | 306,555 |
Vested (in shares) | (219,765) | |
Forfeited (in shares) | (7,874) | |
Ending balance (in shares) | 553,894 | |
Weighted Average Grant Date Fair Value | ||
Non-vested, beginning balance (in dollars per share) | $ 13.51 | |
Granted (in dollars per share) | 13.30 | |
Vested (in dollars per share) | 13.94 | |
Forfeited (in dollars per share) | 13.45 | |
Non-vested, ending balance (in dollars per share) | $ 13.22 |
SHARE BASED COMPENSATION, 401_5
SHARE BASED COMPENSATION, 401(K) PLAN AND DEFERRED COMPENSATION - Schedule of Restricted Performance Share Units Plan (Details) - Executive Officers - Restricted Performance Share Units Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 03, 2022 | Mar. 05, 2021 | Mar. 05, 2020 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning balance (in shares) | 688,216 | |||
Granted (in shares) | 516,852 | |||
Units Cancelled (in shares) | (8,812) | |||
Ending balance (in shares) | 1,196,256 | |||
3/5/2020 RSPU Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning balance (in shares) | 314,055 | |||
Granted (in shares) | 0 | |||
Units Cancelled (in shares) | (2,076) | |||
Ending balance (in shares) | 311,979 | |||
Granted (in shares) | 319,600 | |||
Fair Value of Units on Grant Date | $ 5,389 | |||
3/5/2021 RSPU Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning balance (in shares) | 374,161 | |||
Granted (in shares) | 0 | |||
Units Cancelled (in shares) | (2,922) | |||
Ending balance (in shares) | 371,239 | |||
Granted (in shares) | 380,957 | |||
Fair Value of Units on Grant Date | $ 6,389 | |||
3/3/2022 RSPU Grant | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Beginning balance (in shares) | 0 | |||
Granted (in shares) | 516,852 | |||
Units Cancelled (in shares) | (3,814) | |||
Ending balance (in shares) | 513,038 | |||
Granted (in shares) | 516,852 | |||
Fair Value of Units on Grant Date | $ 6,872 |
DISTRIBUTIONS (Details)
DISTRIBUTIONS (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common Share Distributions: | |||
Ordinary income (in usd per share) | $ 0.47 | $ 0.64 | $ 0.41 |
Capital gain (in usd per share) | 0.29 | 0.01 | 0.35 |
Non-taxable distributions (in usd per share) | 0 | 0.11 | 0 |
Distributions per share (in usd per share) | $ 0.76 | $ 0.76 | $ 0.76 |
Percentage classified as ordinary income | 62.10% | 83.90% | 53.90% |
Percentage classified as capital gain | 37.90% | 1.20% | 46.10% |
Percentage classified as non-taxable distribution | 0% | 14.90% | 0% |
INCOME TAXES AND TAX CREDIT T_2
INCOME TAXES AND TAX CREDIT TRANSACTIONS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Examination [Line Items] | |||
Accruals for tax uncertainties | $ 0 | $ 0 | |
Deferred income tax expense | 0 | 0 | $ 0 |
Current income tax expense (benefit) | 0 | 0 | $ (200,000) |
Other Assets | |||
Income Tax Examination [Line Items] | |||
Deferred tax assets | $ 0 | $ 0 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Parent Company | ||||
Beneficiaries' Equity, beginning balance | $ 1,701,219 | $ 1,804,648 | $ 1,688,303 | |
Change in fair market value during year | 5,371 | 4,817 | (5,972) | |
Allocation of unrealized (gains)/losses on derivative financial instruments to noncontrolling interests | (18) | (28) | 29 | |
Amortization of interest rate contracts reclassified from comprehensive income to interest expense | [1] | 564 | 752 | 752 |
Beneficiaries' Equity, ending balance | 1,633,334 | 1,701,219 | 1,804,648 | |
Operating Partnership | ||||
Change in fair market value during year | 5,371 | 4,817 | (5,972) | |
Amortization of interest rate contracts reclassified from comprehensive income to interest expense | [1] | 564 | 752 | 752 |
BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Parent Company | ||||
Change in fair market value during year | 5,371 | 4,817 | (5,972) | |
Amortization of interest rate contracts reclassified from comprehensive income to interest expense | [1] | 564 | 752 | 752 |
Operating Partnership | ||||
Partners' Equity, beginning balance | 1,690,079 | 1,793,082 | 1,672,915 | |
Change in fair market value during year | 5,371 | 4,817 | (5,972) | |
Amortization of interest rate contracts reclassified from comprehensive income to interest expense | [1] | 564 | 752 | 752 |
Partners' Equity, ending balance | 1,630,139 | 1,690,079 | 1,793,082 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Parent Company | ||||
Beneficiaries' Equity, beginning balance | (2,020) | (7,561) | (2,370) | |
Beneficiaries' Equity, ending balance | 3,897 | (2,020) | (7,561) | |
Accumulated Other Comprehensive Income (Loss) | BRANDYWINE OPERATING PARTNERSHIP, L.P. | ||||
Operating Partnership | ||||
Partners' Equity, beginning balance | (2,366) | (7,935) | (2,715) | |
Partners' Equity, ending balance | $ 3,569 | $ (2,366) | $ (7,935) | |
[1]Amounts reclassified from comprehensive income to interest expense within the Consolidated Statements of Operations. |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 12 Months Ended |
Dec. 31, 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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | |||
Operating properties | $ 3,617,240 | $ 3,472,602 | $ 3,474,109 |
Right of use asset - operating leases, net | 19,664 | 20,313 | |
Construction-in-progress | 218,869 | 277,237 | |
Land held for development | 76,499 | 114,604 | |
Prepaid leasehold interests in land held for development, net | 35,576 | 27,762 | |
Philadelphia CBD | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 1,517,801 | 1,460,510 | |
Pennsylvania Suburbs | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 878,546 | 866,223 | |
Austin, Texas | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 851,835 | 778,145 | |
Metropolitan Washington, D.C. | |||
Segment Reporting Information [Line Items] | |||
Operating properties | 282,458 | 280,921 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Operating properties | $ 86,600 | $ 86,803 |
SEGMENT INFORMATION - Net Opera
SEGMENT INFORMATION - Net Operating Income of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total revenue | $ 506,100 | $ 486,819 | $ 534,852 |
Operating expenses | (194,401) | (188,311) | (205,456) |
Net operating income | 311,699 | 298,508 | 329,396 |
Philadelphia CBD | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 220,875 | 207,858 | 232,028 |
Pennsylvania Suburbs | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 128,940 | 124,566 | 141,613 |
Austin, Texas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 96,329 | 101,680 | 102,982 |
Metropolitan Washington, D.C. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 21,899 | 19,865 | 40,223 |
Operating Segments | Philadelphia CBD | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 220,876 | 207,858 | 232,028 |
Operating expenses | (79,827) | (73,695) | (82,505) |
Net operating income | 141,049 | 134,163 | 149,523 |
Operating Segments | Pennsylvania Suburbs | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 128,940 | 124,566 | 141,613 |
Operating expenses | (41,814) | (40,011) | (46,281) |
Net operating income | 87,126 | 84,555 | 95,332 |
Operating Segments | Austin, Texas | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 96,328 | 101,680 | 102,982 |
Operating expenses | (41,141) | (39,374) | (39,759) |
Net operating income | 55,187 | 62,306 | 63,223 |
Operating Segments | Metropolitan Washington, D.C. | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 21,900 | 19,865 | 40,223 |
Operating expenses | (12,539) | (15,386) | (20,791) |
Net operating income | 9,361 | 4,479 | 19,432 |
Operating Segments | Other | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 14,710 | 14,015 | 13,469 |
Operating expenses | (8,626) | (9,840) | (9,815) |
Net operating income | 6,084 | 4,175 | 3,654 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total revenue | 23,346 | 18,835 | 4,537 |
Operating expenses | (10,454) | (10,005) | (6,305) |
Net operating income | $ 12,892 | $ 8,830 | $ (1,768) |
SEGMENT INFORMATION - Unconsoli
SEGMENT INFORMATION - Unconsolidated Real Estate Ventures of Company's Reportable Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures, at equity | $ 532,224 | $ 411,110 | |
Equity in income (loss) of real estate venture | (22,016) | (26,697) | $ (18,584) |
Philadelphia CBD | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures, at equity | 387,301 | 317,959 | |
Equity in income (loss) of real estate venture | (11,764) | (15,191) | (9,090) |
Metropolitan Washington, D.C. | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures, at equity | 83,903 | 85,867 | |
Equity in income (loss) of real estate venture | (2,324) | (3,755) | (3,019) |
Mid-Atlantic Office Venture | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures, at equity | 31,005 | 31,680 | |
Equity in income (loss) of real estate venture | 412 | 932 | 96 |
MAP Venture | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures, at equity | (35,411) | (24,396) | |
Equity in income (loss) of real estate venture | (8,340) | (8,683) | (6,571) |
Austin, Texas | |||
Segment Reporting Information [Line Items] | |||
Investment in real estate ventures, at equity | 65,426 | 0 | |
Equity in income (loss) of real estate venture | $ 0 | $ 0 | $ 0 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Reconciliation of Consolidated Net Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting [Abstract] | |||
Net income | $ 53,992 | $ 12,366 | $ 307,326 |
Plus: | |||
Interest expense | 68,764 | 62,617 | 73,911 |
Interest expense - amortization of deferred financing costs | 3,091 | 2,836 | 2,904 |
Depreciation and amortization | 177,984 | 178,105 | 188,283 |
General and administrative expenses | 35,006 | 30,153 | 30,288 |
Equity in loss of unconsolidated real estate ventures | 22,016 | 26,697 | 18,584 |
Provision for impairment | 4,663 | 0 | 0 |
Loss on early extinguishment of debt | 435 | 0 | 0 |
Less: | |||
Interest and investment income | 1,905 | 8,295 | 1,939 |
Income tax (provision) benefit | (55) | (47) | 224 |
Net gain on disposition of real estate | 17,677 | 142 | 289,461 |
Net gain on sale of undepreciated real estate | 8,007 | 2,903 | 201 |
Net gain on real estate venture transactions | 26,718 | 2,973 | 75 |
Consolidated net operating income | $ 311,699 | $ 298,508 | $ 329,396 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Oct. 21, 2020 USD ($) | Feb. 28, 2021 property | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jul. 23, 2021 USD ($) | Sep. 30, 2004 ft² | |
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Real estate ventures aggregate indebtedness | $ 1,204,779 | $ 961,509 | ||||
Limited payment guarantee, percent of principle balance (up to) | 25% | |||||
Commerce Square | Preferred Equity Investment Obligation | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Other commitments | 20,000 | |||||
Amount committed to date | 7,200 | |||||
Schuylkill Yards Project | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Other commitments | 6,600 | |||||
Estimated potential additional contribution obligation | 2,200 | |||||
Natural Disasters and Other Casualty Events | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Number of properties damaged | property | 1 | |||||
Write-off of fixed assets | 1,200 | |||||
Restoration liability | 800 | 7,200 | ||||
Business interruption costs | 3,900 | |||||
Insurance proceeds | 2,800 | 15,300 | ||||
Natural Disasters and Other Casualty Events | Other Income | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Insurance proceeds | 3,000 | |||||
Natural Disasters and Other Casualty Events | Accounts Payable and Accrued Liabilities | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Restoration liability | $ 1,900 | |||||
3025 JFK Venture | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Construction loan amount | 186,700 | $ 186,700 | ||||
Unconsolidated Real Estate Ventures | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Real estate ventures aggregate indebtedness | 1,204,800 | |||||
Two Logan Square | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Rentable square feet | ft² | 708,844 | |||||
Settlement liabilities | $ 600 | |||||
Two Logan Square | Secured Debt | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ||||||
Repayments of long-term debt | $ 79,800 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 12 Months Ended | |||||
Jan. 20, 2023 USD ($) | Jan. 19, 2023 USD ($) property subsidiary | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 20, 2022 | |
Subsequent Event [Line Items] | ||||||
Repayments of unsecured notes | $ 296,134,000 | $ 0 | $ 0 | |||
Secured Facility | Subsequent Event | Secured Debt | ||||||
Subsequent Event [Line Items] | ||||||
Number of wholly owned subsidiaries participating in a loan agreement | subsidiary | 7 | |||||
Number of operating properties | property | 7 | |||||
Debt instrument, face amount | $ 245,000,000 | |||||
Debt instrument, interest rate | 5.875% | |||||
Guaranteed Notes due 2023 | Unsecured Debt | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ 350,000,000 | |||||
Debt instrument, interest rate | 3.95% | 3.95% | ||||
Interest payable | $ 4,100,000 | |||||
Guaranteed Notes due 2023 | Subsequent Event | Unsecured Debt | ||||||
Subsequent Event [Line Items] | ||||||
Repayments of unsecured notes | $ 55,200,000 | |||||
Redemption of principal amount | 54,300,000 | |||||
Interest payable | $ 920,000 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for doubtful accounts: | |||
Balance at Beginning of Year | $ 4,133 | $ 5,086 | $ 7,975 |
Additions | 0 | 0 | 0 |
Deductions | 186 | 953 | 2,889 |
Balance at End of Year | $ 3,947 | $ 4,133 | $ 5,086 |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Initial Cost | ||||
Land | $ 359,777 | |||
Buildings and Improvements | 2,527,685 | |||
Net Improvements (Retirements) Since Acquisition | 729,778 | |||
Gross Amount Which Carried | ||||
Land | 403,998 | |||
Buildings and Improvements | 3,213,242 | |||
Total | 3,617,240 | $ 3,472,602 | $ 3,474,109 | $ 4,006,459 |
Accumulated Depreciation at December 31, 2022 | 1,063,060 | $ 957,450 | $ 896,561 | $ 973,318 |
PENNSYLVANIA SUBURBS | Six Tower Bridge (181 Washington Street) | ||||
Initial Cost | ||||
Land | 6,927 | |||
Buildings and Improvements | 14,722 | |||
Net Improvements (Retirements) Since Acquisition | 1,176 | |||
Gross Amount Which Carried | ||||
Land | 6,237 | |||
Buildings and Improvements | 16,588 | |||
Total | 22,825 | |||
Accumulated Depreciation at December 31, 2022 | 4,604 | |||
PENNSYLVANIA SUBURBS | 426 West Lancaster Avenue | ||||
Initial Cost | ||||
Land | 1,689 | |||
Buildings and Improvements | 6,756 | |||
Net Improvements (Retirements) Since Acquisition | 9,405 | |||
Gross Amount Which Carried | ||||
Land | 1,686 | |||
Buildings and Improvements | 16,164 | |||
Total | 17,850 | |||
Accumulated Depreciation at December 31, 2022 | 2,727 | |||
PENNSYLVANIA SUBURBS | 640 Freedom Business Center | ||||
Initial Cost | ||||
Land | 1,015 | |||
Buildings and Improvements | 20,098 | |||
Net Improvements (Retirements) Since Acquisition | 4,603 | |||
Gross Amount Which Carried | ||||
Land | 332 | |||
Buildings and Improvements | 25,384 | |||
Total | 25,716 | |||
Accumulated Depreciation at December 31, 2022 | 16,544 | |||
PENNSYLVANIA SUBURBS | 620 Freedom Business Center | ||||
Initial Cost | ||||
Land | 666 | |||
Buildings and Improvements | 13,118 | |||
Net Improvements (Retirements) Since Acquisition | 2,372 | |||
Gross Amount Which Carried | ||||
Land | 217 | |||
Buildings and Improvements | 15,939 | |||
Total | 16,156 | |||
Accumulated Depreciation at December 31, 2022 | 10,154 | |||
PENNSYLVANIA SUBURBS | 1000 First Avenue | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 13,708 | |||
Net Improvements (Retirements) Since Acquisition | 2,971 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 16,679 | |||
Total | 16,679 | |||
Accumulated Depreciation at December 31, 2022 | 12,521 | |||
PENNSYLVANIA SUBURBS | 1060 First Avenue | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 13,665 | |||
Net Improvements (Retirements) Since Acquisition | 3,979 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 17,644 | |||
Total | 17,644 | |||
Accumulated Depreciation at December 31, 2022 | 12,989 | |||
PENNSYLVANIA SUBURBS | 630 Freedom Business Center Drive | ||||
Initial Cost | ||||
Land | 666 | |||
Buildings and Improvements | 13,251 | |||
Net Improvements (Retirements) Since Acquisition | 2,864 | |||
Gross Amount Which Carried | ||||
Land | 219 | |||
Buildings and Improvements | 16,562 | |||
Total | 16,781 | |||
Accumulated Depreciation at December 31, 2022 | 10,946 | |||
PENNSYLVANIA SUBURBS | 1020 First Avenue | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 10,744 | |||
Net Improvements (Retirements) Since Acquisition | 4,306 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 15,050 | |||
Total | 15,050 | |||
Accumulated Depreciation at December 31, 2022 | 11,050 | |||
PENNSYLVANIA SUBURBS | 1040 First Avenue | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 14,142 | |||
Net Improvements (Retirements) Since Acquisition | 4,915 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 19,057 | |||
Total | 19,057 | |||
Accumulated Depreciation at December 31, 2022 | 14,165 | |||
PENNSYLVANIA SUBURBS | 610 Freedom Business Center Drive | ||||
Initial Cost | ||||
Land | 485 | |||
Buildings and Improvements | 9,602 | |||
Net Improvements (Retirements) Since Acquisition | 2,289 | |||
Gross Amount Which Carried | ||||
Land | 159 | |||
Buildings and Improvements | 12,217 | |||
Total | 12,376 | |||
Accumulated Depreciation at December 31, 2022 | 8,256 | |||
PENNSYLVANIA SUBURBS | 650 Park Avenue | ||||
Initial Cost | ||||
Land | 1,916 | |||
Buildings and Improvements | 4,378 | |||
Net Improvements (Retirements) Since Acquisition | (4,378) | |||
Gross Amount Which Carried | ||||
Land | 1,916 | |||
Buildings and Improvements | 0 | |||
Total | 1,916 | |||
Accumulated Depreciation at December 31, 2022 | 0 | |||
PENNSYLVANIA SUBURBS | 600 Park Avenue | ||||
Initial Cost | ||||
Land | 1,012 | |||
Buildings and Improvements | 4,048 | |||
Net Improvements (Retirements) Since Acquisition | 50 | |||
Gross Amount Which Carried | ||||
Land | 1,012 | |||
Buildings and Improvements | 4,098 | |||
Total | 5,110 | |||
Accumulated Depreciation at December 31, 2022 | 2,660 | |||
PENNSYLVANIA SUBURBS | 933 First Avenue | ||||
Initial Cost | ||||
Land | 3,127 | |||
Buildings and Improvements | 20,794 | |||
Net Improvements (Retirements) Since Acquisition | (1,125) | |||
Gross Amount Which Carried | ||||
Land | 3,127 | |||
Buildings and Improvements | 19,669 | |||
Total | 22,796 | |||
Accumulated Depreciation at December 31, 2022 | 4,823 | |||
PENNSYLVANIA SUBURBS | 500 North Gulph Road | ||||
Initial Cost | ||||
Land | 1,303 | |||
Buildings and Improvements | 5,201 | |||
Net Improvements (Retirements) Since Acquisition | 21,471 | |||
Gross Amount Which Carried | ||||
Land | 1,303 | |||
Buildings and Improvements | 26,672 | |||
Total | 27,975 | |||
Accumulated Depreciation at December 31, 2022 | 4,690 | |||
PENNSYLVANIA SUBURBS | 401 Plymouth Road | ||||
Initial Cost | ||||
Land | 6,199 | |||
Buildings and Improvements | 16,131 | |||
Net Improvements (Retirements) Since Acquisition | 14,515 | |||
Gross Amount Which Carried | ||||
Land | 6,199 | |||
Buildings and Improvements | 30,646 | |||
Total | 36,845 | |||
Accumulated Depreciation at December 31, 2022 | 15,527 | |||
PENNSYLVANIA SUBURBS | Metroplex (4000 Chemical Road) | ||||
Initial Cost | ||||
Land | 4,373 | |||
Buildings and Improvements | 24,546 | |||
Net Improvements (Retirements) Since Acquisition | 5,554 | |||
Gross Amount Which Carried | ||||
Land | 4,373 | |||
Buildings and Improvements | 30,100 | |||
Total | 34,473 | |||
Accumulated Depreciation at December 31, 2022 | 9,860 | |||
PENNSYLVANIA SUBURBS | 610 West Germantown Pike | ||||
Initial Cost | ||||
Land | 3,651 | |||
Buildings and Improvements | 14,514 | |||
Net Improvements (Retirements) Since Acquisition | 5,461 | |||
Gross Amount Which Carried | ||||
Land | 3,651 | |||
Buildings and Improvements | 19,975 | |||
Total | 23,626 | |||
Accumulated Depreciation at December 31, 2022 | 10,440 | |||
PENNSYLVANIA SUBURBS | 600 West Germantown Pike | ||||
Initial Cost | ||||
Land | 3,652 | |||
Buildings and Improvements | 15,288 | |||
Net Improvements (Retirements) Since Acquisition | 4,035 | |||
Gross Amount Which Carried | ||||
Land | 3,652 | |||
Buildings and Improvements | 19,323 | |||
Total | 22,975 | |||
Accumulated Depreciation at December 31, 2022 | 9,682 | |||
PENNSYLVANIA SUBURBS | 630 West Germantown Pike | ||||
Initial Cost | ||||
Land | 3,558 | |||
Buildings and Improvements | 14,743 | |||
Net Improvements (Retirements) Since Acquisition | 3,169 | |||
Gross Amount Which Carried | ||||
Land | 3,558 | |||
Buildings and Improvements | 17,912 | |||
Total | 21,470 | |||
Accumulated Depreciation at December 31, 2022 | 9,015 | |||
PENNSYLVANIA SUBURBS | 620 West Germantown Pike | ||||
Initial Cost | ||||
Land | 3,572 | |||
Buildings and Improvements | 14,435 | |||
Net Improvements (Retirements) Since Acquisition | 4,131 | |||
Gross Amount Which Carried | ||||
Land | 3,572 | |||
Buildings and Improvements | 18,566 | |||
Total | 22,138 | |||
Accumulated Depreciation at December 31, 2022 | 8,409 | |||
PENNSYLVANIA SUBURBS | 660 West Germantown Pike | ||||
Initial Cost | ||||
Land | 3,694 | |||
Buildings and Improvements | 5,487 | |||
Net Improvements (Retirements) Since Acquisition | 19,502 | |||
Gross Amount Which Carried | ||||
Land | 5,405 | |||
Buildings and Improvements | 23,278 | |||
Total | 28,683 | |||
Accumulated Depreciation at December 31, 2022 | 8,467 | |||
PENNSYLVANIA SUBURBS | 351 Plymouth Road | ||||
Initial Cost | ||||
Land | 1,043 | |||
Buildings and Improvements | 555 | |||
Net Improvements (Retirements) Since Acquisition | 0 | |||
Gross Amount Which Carried | ||||
Land | 1,043 | |||
Buildings and Improvements | 555 | |||
Total | 1,598 | |||
Accumulated Depreciation at December 31, 2022 | 246 | |||
PENNSYLVANIA SUBURBS | 150 Radnor Chester Road | ||||
Initial Cost | ||||
Land | 11,925 | |||
Buildings and Improvements | 36,986 | |||
Net Improvements (Retirements) Since Acquisition | 21,691 | |||
Gross Amount Which Carried | ||||
Land | 11,897 | |||
Buildings and Improvements | 58,705 | |||
Total | 70,602 | |||
Accumulated Depreciation at December 31, 2022 | 26,556 | |||
PENNSYLVANIA SUBURBS | One Radnor Corporate Center | ||||
Initial Cost | ||||
Land | 7,323 | |||
Buildings and Improvements | 28,613 | |||
Net Improvements (Retirements) Since Acquisition | 14,397 | |||
Gross Amount Which Carried | ||||
Land | 7,323 | |||
Buildings and Improvements | 43,010 | |||
Total | 50,333 | |||
Accumulated Depreciation at December 31, 2022 | 27,920 | |||
PENNSYLVANIA SUBURBS | 201 King of Prussia Road | ||||
Initial Cost | ||||
Land | 8,956 | |||
Buildings and Improvements | 29,811 | |||
Net Improvements (Retirements) Since Acquisition | 4,196 | |||
Gross Amount Which Carried | ||||
Land | 8,949 | |||
Buildings and Improvements | 34,014 | |||
Total | 42,963 | |||
Accumulated Depreciation at December 31, 2022 | 22,515 | |||
PENNSYLVANIA SUBURBS | 555 Lancaster Avenue | ||||
Initial Cost | ||||
Land | 8,014 | |||
Buildings and Improvements | 16,508 | |||
Net Improvements (Retirements) Since Acquisition | 10,772 | |||
Gross Amount Which Carried | ||||
Land | 8,609 | |||
Buildings and Improvements | 26,685 | |||
Total | 35,294 | |||
Accumulated Depreciation at December 31, 2022 | 9,722 | |||
PENNSYLVANIA SUBURBS | Four Radnor Corporate Center | ||||
Initial Cost | ||||
Land | 5,406 | |||
Buildings and Improvements | 21,390 | |||
Net Improvements (Retirements) Since Acquisition | 10,499 | |||
Gross Amount Which Carried | ||||
Land | 5,705 | |||
Buildings and Improvements | 31,590 | |||
Total | 37,295 | |||
Accumulated Depreciation at December 31, 2022 | 18,534 | |||
PENNSYLVANIA SUBURBS | Five Radnor Corporate Center | ||||
Initial Cost | ||||
Land | 6,506 | |||
Buildings and Improvements | 25,525 | |||
Net Improvements (Retirements) Since Acquisition | 9,755 | |||
Gross Amount Which Carried | ||||
Land | 6,578 | |||
Buildings and Improvements | 35,208 | |||
Total | 41,786 | |||
Accumulated Depreciation at December 31, 2022 | 16,306 | |||
PENNSYLVANIA SUBURBS | Three Radnor Corporate Center | ||||
Initial Cost | ||||
Land | 4,773 | |||
Buildings and Improvements | 17,961 | |||
Net Improvements (Retirements) Since Acquisition | 1,788 | |||
Gross Amount Which Carried | ||||
Land | 4,791 | |||
Buildings and Improvements | 19,731 | |||
Total | 24,522 | |||
Accumulated Depreciation at December 31, 2022 | 11,768 | |||
PENNSYLVANIA SUBURBS | Two Radnor Corporate Center | ||||
Initial Cost | ||||
Land | 3,937 | |||
Buildings and Improvements | 15,484 | |||
Net Improvements (Retirements) Since Acquisition | 2,552 | |||
Gross Amount Which Carried | ||||
Land | 3,942 | |||
Buildings and Improvements | 18,031 | |||
Total | 21,973 | |||
Accumulated Depreciation at December 31, 2022 | 11,383 | |||
PENNSYLVANIA SUBURBS | 130 Radnor Chester Road | ||||
Initial Cost | ||||
Land | 2,573 | |||
Buildings and Improvements | 8,338 | |||
Net Improvements (Retirements) Since Acquisition | (258) | |||
Gross Amount Which Carried | ||||
Land | 2,567 | |||
Buildings and Improvements | 8,086 | |||
Total | 10,653 | |||
Accumulated Depreciation at December 31, 2022 | 4,099 | |||
PENNSYLVANIA SUBURBS | 170 Radnor Chester Road | ||||
Initial Cost | ||||
Land | 2,514 | |||
Buildings and Improvements | 8,147 | |||
Net Improvements (Retirements) Since Acquisition | 2,008 | |||
Gross Amount Which Carried | ||||
Land | 2,509 | |||
Buildings and Improvements | 10,160 | |||
Total | 12,669 | |||
Accumulated Depreciation at December 31, 2022 | 5,366 | |||
PENNSYLVANIA SUBURBS | 200 Radnor Chester Road | ||||
Initial Cost | ||||
Land | 3,366 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirements) Since Acquisition | 3,740 | |||
Gross Amount Which Carried | ||||
Land | 3,366 | |||
Buildings and Improvements | 3,740 | |||
Total | 7,106 | |||
Accumulated Depreciation at December 31, 2022 | 1,137 | |||
PENNSYLVANIA SUBURBS | 101 West Elm Street | ||||
Initial Cost | ||||
Land | 6,251 | |||
Buildings and Improvements | 25,209 | |||
Net Improvements (Retirements) Since Acquisition | 2,846 | |||
Gross Amount Which Carried | ||||
Land | 6,251 | |||
Buildings and Improvements | 28,055 | |||
Total | 34,306 | |||
Accumulated Depreciation at December 31, 2022 | 12,533 | |||
PENNSYLVANIA SUBURBS | 1 West Elm Street | ||||
Initial Cost | ||||
Land | 3,557 | |||
Buildings and Improvements | 14,249 | |||
Net Improvements (Retirements) Since Acquisition | 8,203 | |||
Gross Amount Which Carried | ||||
Land | 3,557 | |||
Buildings and Improvements | 22,452 | |||
Total | 26,009 | |||
Accumulated Depreciation at December 31, 2022 | 7,302 | |||
PENNSYLVANIA SUBURBS | 250 King of Prussia Road | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 20,566 | |||
Net Improvements (Retirements) Since Acquisition | 12,733 | |||
Gross Amount Which Carried | ||||
Land | 976 | |||
Buildings and Improvements | 32,323 | |||
Total | 33,299 | |||
Accumulated Depreciation at December 31, 2022 | 626 | |||
PHILADELPHIA CBD | Cira Centre (2929 Arch Street) | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 208,570 | |||
Net Improvements (Retirements) Since Acquisition | 23,843 | |||
Gross Amount Which Carried | ||||
Land | 12,586 | |||
Buildings and Improvements | 219,827 | |||
Total | 232,413 | |||
Accumulated Depreciation at December 31, 2022 | 73,510 | |||
PHILADELPHIA CBD | Three Logan Square (1717 Arch Street) | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 98,188 | |||
Net Improvements (Retirements) Since Acquisition | 86,126 | |||
Gross Amount Which Carried | ||||
Land | 25,195 | |||
Buildings and Improvements | 159,119 | |||
Total | 184,314 | |||
Accumulated Depreciation at December 31, 2022 | 61,247 | |||
PHILADELPHIA CBD | One Logan Square (130 North 18th Street) | ||||
Initial Cost | ||||
Land | 14,496 | |||
Buildings and Improvements | 107,736 | |||
Net Improvements (Retirements) Since Acquisition | 21,614 | |||
Gross Amount Which Carried | ||||
Land | 14,473 | |||
Buildings and Improvements | 129,373 | |||
Total | 143,846 | |||
Accumulated Depreciation at December 31, 2022 | 70,363 | |||
PHILADELPHIA CBD | Two Logan Square (100 North 18th Street) | ||||
Initial Cost | ||||
Land | 16,066 | |||
Buildings and Improvements | 100,255 | |||
Net Improvements (Retirements) Since Acquisition | 34,198 | |||
Gross Amount Which Carried | ||||
Land | 16,066 | |||
Buildings and Improvements | 134,453 | |||
Total | 150,519 | |||
Accumulated Depreciation at December 31, 2022 | 61,597 | |||
PHILADELPHIA CBD | Cira Centre South Garage (129 South 30th Street) | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 76,008 | |||
Net Improvements (Retirements) Since Acquisition | 26,970 | |||
Gross Amount Which Carried | ||||
Land | 6,638 | |||
Buildings and Improvements | 96,340 | |||
Total | 102,978 | |||
Accumulated Depreciation at December 31, 2022 | 27,789 | |||
PHILADELPHIA CBD | 1900 Market Street | ||||
Initial Cost | ||||
Land | 7,768 | |||
Buildings and Improvements | 17,263 | |||
Net Improvements (Retirements) Since Acquisition | 61,760 | |||
Gross Amount Which Carried | ||||
Land | 7,768 | |||
Buildings and Improvements | 79,023 | |||
Total | 86,791 | |||
Accumulated Depreciation at December 31, 2022 | 30,016 | |||
PHILADELPHIA CBD | 3020 Market Street | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 21,417 | |||
Net Improvements (Retirements) Since Acquisition | 7,442 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 28,859 | |||
Total | 28,859 | |||
Accumulated Depreciation at December 31, 2022 | 13,904 | |||
PHILADELPHIA CBD | 618-634 Market Street | ||||
Initial Cost | ||||
Land | 13,365 | |||
Buildings and Improvements | 5,791 | |||
Net Improvements (Retirements) Since Acquisition | 5,180 | |||
Gross Amount Which Carried | ||||
Land | 13,365 | |||
Buildings and Improvements | 10,971 | |||
Total | 24,336 | |||
Accumulated Depreciation at December 31, 2022 | 7,222 | |||
PHILADELPHIA CBD | FMC Tower at Cira Centre South (2929 Walnut Street) | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 400,294 | |||
Net Improvements (Retirements) Since Acquisition | 10,689 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 410,983 | |||
Total | 410,983 | |||
Accumulated Depreciation at December 31, 2022 | 85,826 | |||
PHILADELPHIA CBD | 2100 Market Street | ||||
Initial Cost | ||||
Land | 18,827 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirements) Since Acquisition | 6,292 | |||
Gross Amount Which Carried | ||||
Land | 18,854 | |||
Buildings and Improvements | 6,265 | |||
Total | 25,119 | |||
Accumulated Depreciation at December 31, 2022 | 2,280 | |||
PHILADELPHIA CBD | 1505-11 Race Street | ||||
Initial Cost | ||||
Land | 3,662 | |||
Buildings and Improvements | 6,061 | |||
Net Improvements (Retirements) Since Acquisition | 8 | |||
Gross Amount Which Carried | ||||
Land | 3,670 | |||
Buildings and Improvements | 6,061 | |||
Total | 9,731 | |||
Accumulated Depreciation at December 31, 2022 | 328 | |||
PHILADELPHIA CBD | 3000 Market Street | ||||
Initial Cost | ||||
Land | 18,924 | |||
Buildings and Improvements | 13,080 | |||
Net Improvements (Retirements) Since Acquisition | 17,349 | |||
Gross Amount Which Carried | ||||
Land | 18,924 | |||
Buildings and Improvements | 30,429 | |||
Total | 49,353 | |||
Accumulated Depreciation at December 31, 2022 | 2,608 | |||
PHILADELPHIA CBD | The Bulletin Building (3025 Market Street) | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 24,377 | |||
Net Improvements (Retirements) Since Acquisition | 44,081 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 68,458 | |||
Total | 68,458 | |||
Accumulated Depreciation at December 31, 2022 | 11,490 | |||
PHILADELPHIA CBD | 3001-3003 JFK Boulevard | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirements) Since Acquisition | 111 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 111 | |||
Total | 111 | |||
Accumulated Depreciation at December 31, 2022 | 32 | |||
METROPOLITAN WASHINGTON, D.C. | 6600 Rockledge Drive | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 37,421 | |||
Net Improvements (Retirements) Since Acquisition | 7,672 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 45,093 | |||
Total | 45,093 | |||
Accumulated Depreciation at December 31, 2022 | 17,099 | |||
METROPOLITAN WASHINGTON, D.C. | 1676 International Drive | ||||
Initial Cost | ||||
Land | 18,437 | |||
Buildings and Improvements | 97,538 | |||
Net Improvements (Retirements) Since Acquisition | 37,113 | |||
Gross Amount Which Carried | ||||
Land | 18,785 | |||
Buildings and Improvements | 134,303 | |||
Total | 153,088 | |||
Accumulated Depreciation at December 31, 2022 | 35,718 | |||
METROPOLITAN WASHINGTON, D.C. | 8260 Greensboro Drive | ||||
Initial Cost | ||||
Land | 7,952 | |||
Buildings and Improvements | 33,964 | |||
Net Improvements (Retirements) Since Acquisition | 8,645 | |||
Gross Amount Which Carried | ||||
Land | 8,102 | |||
Buildings and Improvements | 42,459 | |||
Total | 50,561 | |||
Accumulated Depreciation at December 31, 2022 | 14,217 | |||
METROPOLITAN WASHINGTON, D.C. | 8521 Leesburg Pike | ||||
Initial Cost | ||||
Land | 4,316 | |||
Buildings and Improvements | 30,885 | |||
Net Improvements (Retirements) Since Acquisition | (1,511) | |||
Gross Amount Which Carried | ||||
Land | 3,587 | |||
Buildings and Improvements | 30,103 | |||
Total | 33,690 | |||
Accumulated Depreciation at December 31, 2022 | 12,032 | |||
METROPOLITAN WASHINGTON, D.C. | Dabney Westwood | ||||
Initial Cost | ||||
Land | 1,732 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirements) Since Acquisition | 3,690 | |||
Gross Amount Which Carried | ||||
Land | 819 | |||
Buildings and Improvements | 4,603 | |||
Total | 5,422 | |||
Accumulated Depreciation at December 31, 2022 | 185 | |||
AUSTIN, TX | 401-405 Colorado Street | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 100,448 | |||
Net Improvements (Retirements) Since Acquisition | 564 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 101,012 | |||
Total | 101,012 | |||
Accumulated Depreciation at December 31, 2022 | 2,728 | |||
AUSTIN, TX | 11501 Burnet Road - Building 1 | ||||
Initial Cost | ||||
Land | 3,755 | |||
Buildings and Improvements | 22,702 | |||
Net Improvements (Retirements) Since Acquisition | 4 | |||
Gross Amount Which Carried | ||||
Land | 3,755 | |||
Buildings and Improvements | 22,706 | |||
Total | 26,461 | |||
Accumulated Depreciation at December 31, 2022 | 8,876 | |||
AUSTIN, TX | 11501 Burnet Road - Building 2 | ||||
Initial Cost | ||||
Land | 2,732 | |||
Buildings and Improvements | 16,305 | |||
Net Improvements (Retirements) Since Acquisition | 1,473 | |||
Gross Amount Which Carried | ||||
Land | 2,732 | |||
Buildings and Improvements | 17,778 | |||
Total | 20,510 | |||
Accumulated Depreciation at December 31, 2022 | 7,422 | |||
AUSTIN, TX | 11501 Burnet Road - Building 3 | ||||
Initial Cost | ||||
Land | 3,688 | |||
Buildings and Improvements | 22,348 | |||
Net Improvements (Retirements) Since Acquisition | 6,421 | |||
Gross Amount Which Carried | ||||
Land | 3,688 | |||
Buildings and Improvements | 28,769 | |||
Total | 32,457 | |||
Accumulated Depreciation at December 31, 2022 | 9,372 | |||
AUSTIN, TX | 11501 Burnet Road - Building 4 | ||||
Initial Cost | ||||
Land | 2,614 | |||
Buildings and Improvements | 15,740 | |||
Net Improvements (Retirements) Since Acquisition | 3 | |||
Gross Amount Which Carried | ||||
Land | 2,614 | |||
Buildings and Improvements | 15,743 | |||
Total | 18,357 | |||
Accumulated Depreciation at December 31, 2022 | 6,153 | |||
AUSTIN, TX | 11501 Burnet Road - Building 5 | ||||
Initial Cost | ||||
Land | 3,689 | |||
Buildings and Improvements | 22,354 | |||
Net Improvements (Retirements) Since Acquisition | 4 | |||
Gross Amount Which Carried | ||||
Land | 3,689 | |||
Buildings and Improvements | 22,358 | |||
Total | 26,047 | |||
Accumulated Depreciation at December 31, 2022 | 8,740 | |||
AUSTIN, TX | 11501 Burnet Road - Building 6 | ||||
Initial Cost | ||||
Land | 2,676 | |||
Buildings and Improvements | 15,972 | |||
Net Improvements (Retirements) Since Acquisition | 13,855 | |||
Gross Amount Which Carried | ||||
Land | 2,676 | |||
Buildings and Improvements | 29,827 | |||
Total | 32,503 | |||
Accumulated Depreciation at December 31, 2022 | 12,555 | |||
AUSTIN, TX | 11501 Burnet Road - Building 8 | ||||
Initial Cost | ||||
Land | 1,400 | |||
Buildings and Improvements | 7,422 | |||
Net Improvements (Retirements) Since Acquisition | 1,776 | |||
Gross Amount Which Carried | ||||
Land | 1,400 | |||
Buildings and Improvements | 9,198 | |||
Total | 10,598 | |||
Accumulated Depreciation at December 31, 2022 | 3,594 | |||
AUSTIN, TX | 11501 Burnet Road - Parking Garage | ||||
Initial Cost | ||||
Land | 0 | |||
Buildings and Improvements | 19,826 | |||
Net Improvements (Retirements) Since Acquisition | 1,538 | |||
Gross Amount Which Carried | ||||
Land | 0 | |||
Buildings and Improvements | 21,364 | |||
Total | 21,364 | |||
Accumulated Depreciation at December 31, 2022 | 8,740 | |||
AUSTIN, TX | Four Points Centre 3, 11120 Four Points Drive | ||||
Initial Cost | ||||
Land | 1,140 | |||
Buildings and Improvements | 0 | |||
Net Improvements (Retirements) Since Acquisition | 40,322 | |||
Gross Amount Which Carried | ||||
Land | 1,141 | |||
Buildings and Improvements | 40,321 | |||
Total | 41,462 | |||
Accumulated Depreciation at December 31, 2022 | 6,849 | |||
AUSTIN, TX | One Barton Skyway (1501 South MoPac Expressway) | ||||
Initial Cost | ||||
Land | 10,496 | |||
Buildings and Improvements | 47,670 | |||
Net Improvements (Retirements) Since Acquisition | 7,970 | |||
Gross Amount Which Carried | ||||
Land | 10,495 | |||
Buildings and Improvements | 55,641 | |||
Total | 66,136 | |||
Accumulated Depreciation at December 31, 2022 | 6,565 | |||
AUSTIN, TX | Two Barton Skyway (1601 South MoPac Expressway) | ||||
Initial Cost | ||||
Land | 10,849 | |||
Buildings and Improvements | 53,868 | |||
Net Improvements (Retirements) Since Acquisition | 3,889 | |||
Gross Amount Which Carried | ||||
Land | 10,848 | |||
Buildings and Improvements | 57,758 | |||
Total | 68,606 | |||
Accumulated Depreciation at December 31, 2022 | 7,271 | |||
AUSTIN, TX | Three Barton Skyway (1221 South MoPac Expressway) | ||||
Initial Cost | ||||
Land | 10,374 | |||
Buildings and Improvements | 47,624 | |||
Net Improvements (Retirements) Since Acquisition | 1,027 | |||
Gross Amount Which Carried | ||||
Land | 10,373 | |||
Buildings and Improvements | 48,652 | |||
Total | 59,025 | |||
Accumulated Depreciation at December 31, 2022 | 5,158 | |||
AUSTIN, TX | Four Barton Skyway (1301 South MoPac Expressway) | ||||
Initial Cost | ||||
Land | 13,301 | |||
Buildings and Improvements | 57,041 | |||
Net Improvements (Retirements) Since Acquisition | 7,611 | |||
Gross Amount Which Carried | ||||
Land | 13,300 | |||
Buildings and Improvements | 64,653 | |||
Total | 77,953 | |||
Accumulated Depreciation at December 31, 2022 | 7,096 | |||
AUSTIN, TX | Four Points Centre (11305 Four Points Drive) | ||||
Initial Cost | ||||
Land | 7,800 | |||
Buildings and Improvements | 43,581 | |||
Net Improvements (Retirements) Since Acquisition | 4,515 | |||
Gross Amount Which Carried | ||||
Land | 7,800 | |||
Buildings and Improvements | 48,096 | |||
Total | 55,896 | |||
Accumulated Depreciation at December 31, 2022 | 6,275 | |||
AUSTIN, TX | River Place - Building 1 (6500 River Place Boulevard) | ||||
Initial Cost | ||||
Land | 2,004 | |||
Buildings and Improvements | 17,680 | |||
Net Improvements (Retirements) Since Acquisition | 562 | |||
Gross Amount Which Carried | ||||
Land | 2,004 | |||
Buildings and Improvements | 18,242 | |||
Total | 20,246 | |||
Accumulated Depreciation at December 31, 2022 | 2,189 | |||
AUSTIN, TX | River Place - Building 2 (6500 River Place Boulevard) | ||||
Initial Cost | ||||
Land | 3,137 | |||
Buildings and Improvements | 29,254 | |||
Net Improvements (Retirements) Since Acquisition | 806 | |||
Gross Amount Which Carried | ||||
Land | 3,137 | |||
Buildings and Improvements | 30,060 | |||
Total | 33,197 | |||
Accumulated Depreciation at December 31, 2022 | 3,432 | |||
AUSTIN, TX | River Place - Building 3 (6500 River Place Boulevard) | ||||
Initial Cost | ||||
Land | 3,064 | |||
Buildings and Improvements | 26,705 | |||
Net Improvements (Retirements) Since Acquisition | 447 | |||
Gross Amount Which Carried | ||||
Land | 3,064 | |||
Buildings and Improvements | 27,152 | |||
Total | 30,216 | |||
Accumulated Depreciation at December 31, 2022 | 2,931 | |||
AUSTIN, TX | River Place - Building 4 (6500 River Place Boulevard | ||||
Initial Cost | ||||
Land | 2,273 | |||
Buildings and Improvements | 18,617 | |||
Net Improvements (Retirements) Since Acquisition | 1,716 | |||
Gross Amount Which Carried | ||||
Land | 2,273 | |||
Buildings and Improvements | 20,333 | |||
Total | 22,606 | |||
Accumulated Depreciation at December 31, 2022 | 2,903 | |||
AUSTIN, TX | River Place - Building 5 (6500 River Place Boulevard) | ||||
Initial Cost | ||||
Land | 1,752 | |||
Buildings and Improvements | 14,315 | |||
Net Improvements (Retirements) Since Acquisition | 692 | |||
Gross Amount Which Carried | ||||
Land | 1,752 | |||
Buildings and Improvements | 15,007 | |||
Total | 16,759 | |||
Accumulated Depreciation at December 31, 2022 | 1,655 | |||
AUSTIN, TX | River Place - Building 6 (6500 River Place Boulevard) | ||||
Initial Cost | ||||
Land | 1,598 | |||
Buildings and Improvements | 12,945 | |||
Net Improvements (Retirements) Since Acquisition | 703 | |||
Gross Amount Which Carried | ||||
Land | 1,598 | |||
Buildings and Improvements | 13,648 | |||
Total | 15,246 | |||
Accumulated Depreciation at December 31, 2022 | 1,490 | |||
AUSTIN, TX | River Place - Building 7 (6500 River Place Boulevard) | ||||
Initial Cost | ||||
Land | 1,801 | |||
Buildings and Improvements | 16,486 | |||
Net Improvements (Retirements) Since Acquisition | 1,208 | |||
Gross Amount Which Carried | ||||
Land | 1,801 | |||
Buildings and Improvements | 17,694 | |||
Total | 19,495 | |||
Accumulated Depreciation at December 31, 2022 | 2,468 | |||
AUSTIN, TX | Quarry Lake II (4516 Seton Center Parkway) | ||||
Initial Cost | ||||
Land | 3,970 | |||
Buildings and Improvements | 30,546 | |||
Net Improvements (Retirements) Since Acquisition | 1,174 | |||
Gross Amount Which Carried | ||||
Land | 3,867 | |||
Buildings and Improvements | 31,823 | |||
Total | 35,690 | |||
Accumulated Depreciation at December 31, 2022 | 3,611 | |||
OTHER | Main Street-Plaza 1000 | ||||
Initial Cost | ||||
Land | 2,732 | |||
Buildings and Improvements | 10,942 | |||
Net Improvements (Retirements) Since Acquisition | 284 | |||
Gross Amount Which Carried | ||||
Land | 2,732 | |||
Buildings and Improvements | 11,226 | |||
Total | 13,958 | |||
Accumulated Depreciation at December 31, 2022 | 11,054 | |||
OTHER | Main Street-Piazza | ||||
Initial Cost | ||||
Land | 696 | |||
Buildings and Improvements | 2,802 | |||
Net Improvements (Retirements) Since Acquisition | 3,586 | |||
Gross Amount Which Carried | ||||
Land | 704 | |||
Buildings and Improvements | 6,380 | |||
Total | 7,084 | |||
Accumulated Depreciation at December 31, 2022 | 4,547 | |||
OTHER | Main Street-Promenade | ||||
Initial Cost | ||||
Land | 532 | |||
Buildings and Improvements | 2,052 | |||
Net Improvements (Retirements) Since Acquisition | 311 | |||
Gross Amount Which Carried | ||||
Land | 532 | |||
Buildings and Improvements | 2,363 | |||
Total | 2,895 | |||
Accumulated Depreciation at December 31, 2022 | 1,561 | |||
OTHER | 920 North King Street | ||||
Initial Cost | ||||
Land | 6,141 | |||
Buildings and Improvements | 21,140 | |||
Net Improvements (Retirements) Since Acquisition | 7,108 | |||
Gross Amount Which Carried | ||||
Land | 6,141 | |||
Buildings and Improvements | 28,248 | |||
Total | 34,389 | |||
Accumulated Depreciation at December 31, 2022 | 16,427 | |||
OTHER | 300 Delaware Avenue | ||||
Initial Cost | ||||
Land | 6,369 | |||
Buildings and Improvements | 13,739 | |||
Net Improvements (Retirements) Since Acquisition | 2,750 | |||
Gross Amount Which Carried | ||||
Land | 6,369 | |||
Buildings and Improvements | 16,489 | |||
Total | 22,858 | |||
Accumulated Depreciation at December 31, 2022 | $ 10,393 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Reconciliations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Balance at the Beginning of the Year | $ 3,472,602 | $ 3,474,109 | $ 4,006,459 |
Additions: | |||
Acquisitions | 0 | 0 | 9,722 |
Capital expenditures and assets placed into service | 212,874 | 134,931 | 113,221 |
Less: | |||
Dispositions/impairments/placed into redevelopment | (32,951) | (82,247) | (619,086) |
Retirements | (35,285) | (54,191) | (36,207) |
Balance at the end of the year | 3,617,240 | 3,472,602 | 3,474,109 |
Per consolidated balance sheet | 3,617,240 | 3,472,602 | 3,474,109 |
Tax basis of assets, cost for income tax purposes | 3,200,000 | 3,100,000 | |
Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Balance at the beginning of the year | 957,450 | 896,561 | 973,318 |
Additions: | |||
Depreciation expense | 147,735 | 136,171 | 138,822 |
Less: | |||
Dispositions/impairments/placed into redevelopment | (7,341) | (24,440) | (182,526) |
Retirements | (34,784) | (50,842) | (33,053) |
Balance at the end of the year | 1,063,060 | 957,450 | 896,561 |
Per consolidated balance sheet | $ 1,063,060 | $ 957,450 | $ 896,561 |
Leashold Interest Land | |||
Less: | |||
Lease agreement term (in years) | 99 years | ||
Maximum | |||
Less: | |||
Useful life (in years) | 55 years |