UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

Brandywine Realty Trust
Brandywine Operating Partnership, L.P.

(Exact name of registrant as specified in charter)

MARYLAND		001-9106		23-2413352
(Brandywine Realty Trust)
DELAWARE
(Brandywine Operating Partnership, L.P.)		000-24407		23-2862640
(State or Other Jurisdiction of Incorporation or Organization)		(Commission file number)		(I.R.S. Employer Identification Number)

555 East Lancaster Avenue, Suite 100
Radnor, PA 19087

(Address of principal executive offices)

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition

     The information in this Current Report on Form 8-K is furnished under Item 2.02 – “Results of Operations and Financial Condition.” Such information, including the exhibits attached hereto, shall not be deemed to be “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

     On July 25, 2007, we issued a press release announcing our financial results for the three- and six-months ending June 30, 2007. That press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.

     The press release includes “non-GAAP financial measures” within the meaning of the Securities and Exchange Commission’s Regulation G. With respect to such non-GAAP financial measures, we have disclosed in the press release the most directly comparable financial measure calculated and presented in accordance with generally accepted accounting principles (“GAAP”) and have provided a reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measure.

Item 9.01 Financial Statements and Exhibits

Exhibits

99.1		Brandywine Realty Trust Press Release dated July 25, 2007

Signatures

     Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

Date: July 26, 2007

EXHIBIT INDEX

Exhibit
No.		Description
99.1		Press Release dated July 25, 2007

EXHIBIT 99.1

Press Contact:      Amy Biemiller      Director of Communications      610-832-7705      amy.biemiller@bdnreit.com				Investor Contact:       Howard M. Sipzner       EVP & CFO       610-832-4907       howard.sipzner@bdnreit.com

Brandywine Realty Trust Second Quarter FFO per Share Increases 8.3%

Radnor, PA, July 25, 2007 — Brandywine Realty Trust (NYSE:BDN), a real estate investment trust focused on the ownership, management and development of Class A, suburban and urban office properties in selected markets throughout the United States, announced today its financial and operating results for the three and six month periods ended June 30, 2007.

Financial Highlights

	§		Funds from operations (FFO) totaled $59.0 million or $0.65 per diluted share in the second quarter of 2007, compared to $57.0 million or $0.60 per diluted share in the second quarter of 2006. The second quarter of 2007 included a $3.8 million gain on the dissolution of a real estate partnership. Our FFO payout ratio for the second quarter of 2007 was 67.7%.
	§		We incurred a $0.8 million loss or ($0.01) per diluted share in the second quarter of 2007, compared to a $13.6 million loss or ($0.15) per diluted share in the second quarter of 2006. These losses are primarily attributable to non-cash real estate amortization and depreciation charges which are added back in the calculation of FFO.
	§		Funds from operations totaled $117.6 million or $1.28 per diluted share for the six months ended June 30, 2007, compared to $112.2 million or $1.19 per diluted share for the six months ended June 30, 2006. Our FFO payout ratio for the first six months of 2007 was 68.8%.
	§		Net income totaled $16.6 million or $0.19 per diluted share for the six months ended June 30, 2007, compared to an $18.2 million loss or ($0.20) per diluted share for the six months ended June 30, 2006. There was a $25.2 million gain on the disposition of discontinued operations during the six months ended June 30, 2007, as well as the aforementioned $3.8 million gain on the dissolution of a real estate partnership.

Portfolio Highlights

	§		At June 30, 2007, our core portfolio was 93.9% occupied and 95.0% leased (reflecting recently executed leases) versus 91.6% and 93.1%, respectively, at June 30, 2006. We owned 281 properties at June 30, 2007, encompassing 265 properties in our core portfolio and 16 properties under development or redevelopment.
	§		Net operating income (NOI) on a same store basis increased 2.0% on a GAAP basis and 2.5% on a cash basis in the second quarter of 2007 versus the second quarter of 2006 for the 256 same store properties which were 93.6% occupied on June 30, 2007 versus 93.0% occupied on June 30, 2006. Our consolidated NOI margin on a GAAP basis was 62.0% for the second quarter of 2007. Year to date, our net operating income on a same store basis has increased 2.4% on a GAAP basis and 3.7% on a cash basis.
	§		For the second quarter of 2007, our core portfolio retention rate was 85.5% with positive net absorption of 181,656 square feet. In the second quarter of 2007, we achieved a 7.2% increase on our new lease rental rates and a 1.4% increase on our renewal rental rates, both on a GAAP basis. Year to date, we have achieved positive net absorption of 326,766 square feet in our core portfolio.

555 East Lancaster Avenue, Suite 100, Radnor, PA 19087		Phone: (610) 325-5600 • Fax: (610) 325-5622 • www.brandywinerealty.com

Investment Highlights

	§		During the second quarter of 2007, we acquired 155 Grand Avenue, a 97.9% occupied, 204,278 square foot office building in Oakland, CA, for $72.0 million. Subsequent to quarter end, we acquired a package of five buildings in the Boulders office park in Richmond, VA aggregating 508,607 square feet and 94.0% occupied, for $96.5 million.
	§		During the second quarter of 2007, we sold our Cityplace office building in Dallas, TX for $115.0 million and incurred a $0.6 million loss on the sale attributable to certain closing adjustments.
	§		At June 30, 2007, we were actively proceeding on six ground-up office developments and eight office redevelopments with a total identified cost of $514.6 million of which $130.2 million remained to be funded. In addition, we are in the planning and design phase on two office redevelopments, nine land development projects and several other projects with a total, current investment of $113.3 million; held $60.6 million of other land for future development and are completing a series of tenant and building improvement projects aggregating $55.1 million.

Capital Markets Highlights

	§		On April 30, 2007, we closed the sale of $300 million of 5.70% senior unsecured notes due May 1, 2017, with a yield of 5.72%, representing a spread of 1.10% to the yield on the underlying 2017 Treasury note on the day of the pricing. We used the net proceeds of the notes to reduce outstanding indebtedness under our unsecured credit facility.
	§		On June 29, 2007, we amended and restated our $600 million unsecured credit facility achieving a reduction in the base pricing, a change in various covenants, a reduced capitalization rate for valuation calculations and an extension of the maturity to June 29, 2011.
	§		Subsequent to quarter end, we repaid $136.0 million of fixed-rate mortgage loans without incurring any prepayment penalty. We used our unsecured credit facility to fund the repayment.

“We are extremely pleased with our second quarter performance,” stated Gerard H. Sweeney, President and CEO of Brandywine Realty Trust. “We experienced improving operating and leasing metrics evidenced by robust absorption, meaningful occupancy gains and improving rental rates. Our construction activities remain on schedule and our development pipeline continues to experience strong activity. Our sales and investment activities have reinforced our market strategies and will maintain our competitive advantage. We are pleased to have completed the dissolution of our Invesco partnership and the realization of $3.8 million in incremental revenue from that process. Lastly, we executed a series of capital market transactions to enhance our balance sheet and provide greater flexibility and capacity for future investment opportunities.”

Distributions

On June 12, 2007, our Board of Trustees declared a quarterly dividend distribution of $0.44 per common share that was paid on July 19, 2007 to shareholders of record as of July 5, 2007. Our Board also declared quarterly dividend distributions of $0.46875 per 7.50% Series C Cumulative Redeemable Preferred Share and $0.460938 per 7.375% Series D Cumulative Redeemable Preferred Share that were paid on July 16, 2007 to holders of record as of June 30, 2007 of the Series C and Series D Preferred Shares, respectively.

Share Repurchase Program

Year to date, we have purchased a total of 1,780,600 common shares at an average price of $33.37 per common share under our Board-approved share repurchase program. We are authorized to purchase an additional 539,200 common shares and may make repurchases from time to time in the open market or in privately negotiated transactions, subject to market conditions and compliance with legal requirements. The share

repurchase program does not contain any time limitation and does not obligate us to repurchase any shares. We may discontinue the program at any time.

2007 FFO Guidance

Based on current plans and assumptions and subject to the risks and uncertainties more fully described in Brandywine’s reports filed with the Securities and Exchange Commission, we are maintaining our previously announced guidance for full year 2007 FFO per diluted share to be in a range of $2.57 to $2.65. This guidance is provided for informational purposes and is subject to change. The following is a reconciliation of the calculation of FFO per diluted share and earnings per diluted share:

Guidance for 2007		Range or Value
Earnings (loss) per diluted share allocated to common shareholders		$	0.17		to			$	0.24
Less: gains on sales of real estate			(0.29	)					(0.29	)
Plus: real estate depreciation and amortization			2.69		to				2.70
FFO per diluted share		$	2.57		to			$	2.65

For guidance purposes, we have not considered any future gains from the sale of real estate not previously disclosed, the impact on operating income from future sales of properties or losses from impairment write-downs of our assets or securities. Our 2007 FFO guidance does not include any income from the sale of undepreciated real estate, in accordance with our prior practice.

Forward-Looking Statements

Estimates of future earnings per share and FFO per share and certain other statements in this release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our and our affiliates’ actual results, performance, achievements or transactions to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among others: our ability to lease vacant space and to renew or relet space under expiring leases at expected levels; competition with other real estate companies for tenants; the potential loss or bankruptcy of major tenants; interest rate levels; the availability of debt, equity or other financing; competition for real estate acquisitions; risks of acquisitions, dispositions and developments, including the cost of construction delays and cost overruns; unanticipated operating and capital costs; our ability to obtain adequate insurance, including coverage for terrorist acts; dependence upon certain geographic markets; and general and local economic and real estate conditions, including the extent and duration of adverse changes that affect the industries in which our tenants operate.

Additional information on factors which could impact us and the forward-looking statements contained herein are included in our filings with the Securities and Exchange Commission, including our Annual Report for the year ended December 31, 2006. We assume no obligation to update or supplement forward-looking statements that become untrue because of subsequent events except as required by law.

Non-GAAP Supplemental Financial Measures

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

Funds from Operations (FFO)

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

For information purposes, we may provide FFO adjusted for debt extinguishment costs. Although our calculation of FFO as adjusted differs from NAREIT’s definition of FFO, and may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance because we believe that by excluding the effects of debt extinguishment, shareholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure equal to net income available to common shareholders, the most directly comparable GAAP financial measure, plus corporate general and administrative expense, depreciation and amortization, interest expense, minority interest in the Operating Partnership and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, income from discontinued operations, income from unconsolidated joint ventures and minority interest in property partnerships. In some cases, we also present NOI on a cash basis, which is NOI after eliminating the effect of straight-lining of rent and deferred market intangible amortization. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered an alternative to net income as an indication of our performance, or as an alternative to cash flow from operating activities as a measure of our liquidity or ability to make cash distributions to shareholders.

Cash Available for Distribution (CAD)

CAD is a non-GAAP financial measure that is not intended as an alternative to cash flow from operating activities as determined under GAAP. CAD is presented solely as a supplemental disclosure with respect to liquidity because we believe it provides useful information regarding our ability to fund our distributions. Because other companies do not necessarily calculate CAD the same way as we do, our presentation of CAD may not be comparable to similarly titled measures provided by other companies.

Second Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, July 26, 2007 at 11:00 a.m. EDT. The conference call can be accessed by calling 1-800-683-1525 and referencing conference ID #8901182. Beginning two hours after the conference call, a taped replay of the call can be accessed 24 hours a day through Thursday, August 9, 2007 by calling 1-877-519-4471 and providing access code 8901182. In addition, the conference call can be accessed via a web cast located on our website at www.brandywinerealty.com.

We have prepared a supplemental information package that includes financial results and operational statistics related to the second quarter earnings report. The supplemental information package is available in the “Investor Relations — Financial Reports” section of our website at www.brandywinerealty.com.

Looking Ahead — Third Quarter 2007 Conference Call

We anticipate that we will release our third quarter 2007 earnings on Wednesday, October 31, 2007, after the market close and will host our third quarter 2007 conference call on Thursday, November 1, 2007, at 11:00 a.m. EDT. We expect to issue a press release in advance of these events to confirm the dates and times and provide all related information.

About Brandywine Realty Trust

Brandywine Realty Trust is one of the largest, publicly-traded, full-service, integrated real estate companies in the United States. Organized as a real estate investment trust and operating in select markets, Brandywine owns, develops and manages a primarily Class A, suburban and urban office portfolio aggregating approximately 44.3 million square feet, including 29.8 million square feet which it currently owns on a consolidated basis. For more information, visit our website at www.brandywinerealty.com.

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

		June 30,				December 31,
		2007				2006
ASSETS
Real estate investments:
Operating properties		$	4,862,726			$	4,927,305
Accumulated depreciation			(554,417	)			(515,698	)
			4,308,309				4,411,607
Development land and construction-in-progress			373,497				328,119
			4,681,806				4,739,726
Cash and cash equivalents			28,522				25,379
Cash in escrow			36,590				—
Accounts receivable, net			16,972				19,957
Accrued rent receivable, net			77,922				71,589
Assets held for sale, net			—				126,016
Investment in real estate ventures			72,748				74,574
Deferred costs, net			81,823				73,708
Intangible assets, net			239,469				281,251
Other assets			92,221				96,818
Total assets		$	5,328,073			$	5,509,018
LIABILITIES AND BENEFICIARIES’ EQUITY
Mortgage notes payable		$	757,145			$	883,920
Borrowings under credit facilities			210,000				60,000
Unsecured senior notes, net of discounts			2,208,070				2,208,310
Accounts payable and accrued expenses			79,473				108,400
Distributions payable			42,131				42,760
Tenant security deposits and deferred rents			59,429				55,697
Acquired lease intangibles, net			72,259				92,527
Other liabilities			12,682				14,661
Mortgage note payable and other liabilities held for sale, net			—				20,826
Total liabilities			3,441,189				3,487,101
Minority interest			85,829				123,991
Beneficiaries’ equity:
Preferred shares — Series C			20				20
Preferred shares — Series D			23				23
Common shares			872				883
Additional paid-in capital			2,275,319				2,311,541
Cumulative earnings			444,340				423,764
Accumulated other comprehensive income			1,322				1,576
Cumulative distributions			(920,841	)			(839,881	)
Total beneficiaries’ equity			1,801,055				1,897,926
Total liabilities and beneficiaries’ equity		$	5,328,073			$	5,509,018

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

		Three Months Ended June 30,									Six Months Ended June 30,
		2007				2006					2007				2006
Revenue
Rents		$	138,597			$	130,467				$	276,537			$	253,536
Tenant reimbursements			21,016				15,496					41,839				32,130
Other			4,691				4,466					9,029				8,681
Total revenue			164,304				150,429					327,405				294,347
Operating Expenses
Property operating expenses			45,965				41,504					91,170				82,478
Real estate taxes			16,435				14,388					32,462				28,595
Depreciation and amortization			58,227				64,145					120,274				115,357
Administrative expenses			6,993				7,724					14,262				16,214
Total operating expenses			127,620				127,761					258,168				242,644
Operating income			36,684				22,668					69,237				51,703
Other income (expense)
Interest income			1,603				2,573					2,390				5,223
Interest expense			(40,803	)			(41,596	)				(81,161	)			(81,974	)
Deferred financing costs			(1,065	)			(794	)				(2,323	)			(1,273	)
Equity in income of real estate ventures			4,504				463					5,258				1,428
Net gain on sale of interests in real estate			—				2,608					—				2,608
Income (loss) before minority interest			923				(14,078	)				(6,599	)			(22,285	)
Minority interest — partners’ share of consolidated real estate ventures			8				(17	)				(108	)			281
Minority interest attributable to continuing operations — LP units			46				707					457				1,142
Income (loss) from continuing operations			977				(13,388	)				(6,250	)			(20,862	)
Discontinued operations:
Income from discontinued operations			1,093				2,119					2,869				7,365
Net gain on disposition of discontinued operations			(856	)			—					25,153				—
Minority interest — partners’ share of consolidated real estate venture			—				(195	)				—				(382	)
Minority interest attributable to discontinued operations — LP units			(10	)			(92	)				(1,196	)			(319	)
			227				1,832					26,826				6,664
Net income (loss)			1,204				(11,556	)				20,576				(14,198	)
Income allocated to Preferred Shares			(1,998	)			(1,998	)				(3,996	)			(3,996	)
(Loss) income allocated to Common Shares		$	(794	)		$	(13,554	)			$	16,580			$	(18,194	)
PER SHARE DATA
Basic (loss) income per Common Share		$	(0.01	)		$	(0.15	)			$	0.19			$	(0.20	)
Basic weighted-average shares outstanding			87,080,785				90,540,237					87,680,773				89,923,528
Diluted (loss) income per Common Share		$	(0.01	)		$	(0.15	)			$	0.19			$	(0.20	)
Diluted weighted-average shares outstanding			87,080,785				90,540,237					88,298,521				89,923,528

BRANDYWINE REALTY TRUST
FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION
(unaudited, in thousands, except share and per share data)

		Three Months Ended June 30,									Six Months Ended June 30,
		2007				2006					2007				2006
Reconciliation of Net Income to Funds from Operations (FFO):
Net income (loss) allocated to common shares		$	(794	)		$	(13,554	)			$	16,580			$	(18,194	)
Add (deduct):
Minority interest attributable to continuing operations — LP units			(46	)			(707	)				(457	)			(1,142	)
Net gains on sale of undepreciated real estate			—				(2,608	)				—				(2,608	)
Minority interest attributable to discontinued operations — LP units			10				92					1,196				319
Net loss (gain) on disposition of discontinued operations			856				—					(25,153	)			—
Income (loss) before net gains on sale of interests in real estate and minority interest			26				(16,777	)				(7,834	)			(21,625	)
Add:
Depreciation and amortization:
Real property — continuing operations			41,291				47,911					86,538				83,746
Leasing costs (includes acquired intangibles) — continuing operations			16,339				15,951					32,457				31,199
Real property — discontinued operations			—				5,823					2,622				10,974
Leasing costs (includes acquired intangibles) — discontinued operations			—				3,923					1,972				7,894
Company’s share of unconsolidated real estate ventures			1,596				1,852					3,040				3,367
Partners’ share of consolidated real estate ventures			(218	)			(1,696	)				(1,172	)			(3,353	)
Funds from operations		$	59,034			$	56,986				$	117,623			$	112,202
FFO per share — fully diluted		$	0.65			$	0.60				$	1.28			$	1.19
Weighted-average shares/units outstanding — fully diluted			91,418,933				94,929,355					92,237,966				94,329,327
Distributions per Common Share		$	0.44			$	0.44				$	0.88			$	0.88
Payout ratio of FFO (Distribution per Common Share divided by FFO per Share)			67.7	%			73.3	%				68.8	%			73.9	%
CASH AVAILABLE FOR DISTRIBUTION (CAD):
Funds from operations		$	59,034			$	56,986				$	117,623			$	112,202
Add (deduct):
Rental income from straight-line rent			(6,143	)			(8,209	)				(14,775	)			(15,917	)
Deferred market rental income			(2,692	)			(1,968	)				(6,305	)			(3,907	)
Operating expense from straight-line rent			383				—					757				—
Net gains on sale of undepreciated real estate			—				2,608					—				2,608
Revenue maintaining capital expenditures
Building improvements			(2,201	)			(2,184	)				(2,908	)			(2,565	)
Tenant improvements			(12,121	)			(7,024	)				(23,357	)			(14,305	)
Lease commissions			(3,006	)			(2,135	)				(6,149	)			(3,032	)
Total revenue maintaining capital expenditures			(17,328	)			(11,343	)				(32,414	)			(19,902	)
Cash available for distribution		$	33,254			$	38,074				$	64,886			$	75,084
CAD per share — fully diluted		$	0.36			$	0.40				$	0.70			$	0.80
Weighted-average shares/units outstanding — fully diluted			91,418,933				94,929,355					92,237,966				94,329,327
Distributions per Common Share		$	0.44			$	0.44				$	0.88			$	0.88
Payout ratio of CAD (Distribution per Common Share divided by CAD per Share)			122.2	%			110.0	%				125.7	%			110.0	%

BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS — QUARTER
(unaudited and in thousands)

Of the 281 properties owned by the Company as of June 30, 2007, a total of 256 properties (“Same Store Properties”) containing an aggregate of 24.0 million net rentable square feet were owned for the entire three month periods ended June 30, 2007 and 2006. Average occupancy for the Same Store Properties was 93.2% during 2007 and 92.9% during 2006. The following table sets forth revenue and expense information for the Same Store Properties:

		Three-months ended June 30,
		2007				2006
Revenue
Rents		$	120,076			$	119,365
Tenant reimbursements			19,482				14,337
Termination fees			464				1,276
Other, excluding termination fees			661				681
			140,683				135,659
Operating expenses
Property operating expenses			41,934				39,875
Real estate taxes			14,393				13,099
Net operating income		$	84,356			$	82,685
Net operating income percentage increase over prior year			2.0	%
Net operating income		$	84,356			$	82,685
Straight line rents			(3,342	)			(4,416	)
FAS 141 rents			(2,414	)			(1,612	)
Cash — Net operating income		$	78,600			$	76,657
Cash — Net operating income percentage increase over prior year			2.5	%

The following table is a reconciliation of Net Income to Same Store net operating income:

		Three-months ended June 30,
		2007				2006
Net Income (loss)		$	1,204			$	(11,556	)
Add/(deduct):
Interest income			(1,603	)			(2,573	)
Interest expense			40,803				41,596
Deferred financing costs			1,065				794
Equity in income of real estate ventures			(4,504	)			(463	)
Depreciation and amortization			58,227				64,145
Net gain on sale of undepreciated real estate			—				(2,608	)
Administrative expenses			6,993				7,724
Minority interest — partners’ share of consolidated real estate ventures			(8	)			17
Minority interest attributable to continuing operations — LP units			(46	)			(707	)
Income from discontinued operations			(227	)			(1,832	)
Consolidated net operating income			101,904				94,537
Less: Net operating income of non same store properties			(12,542	)			(6,178	)
Less: Eliminations and non-property specific net operating income (loss)			(5,006	)			(5,674	)
Same Store net operating income		$	84,356			$	82,685

BRANDYWINE REALTY TRUST
SAME STORE OPERATIONS — YEAR
(unaudited and in thousands)

Of the 281 properties owned by the Company as of June 30, 2007, a total of 256 properties (“Same Store Properties”) containing an aggregate of 24.0 million net rentable square feet were owned for the entire six month periods ended June 30, 2007 and 2006. Average occupancy for the Same Store Properties was 93.1% during 2007 and 92.3% during 2006. The following table sets forth revenue and expense information for the Same Store Properties:

		Six-months ended June 30,
		2007				2006(1)
Revenue
Rents		$	239,056			$	236,519
Tenant reimbursements			38,828				30,076
Termination fees			1,021				1,866
Other, excluding termination fees			1,324				1,465
			280,229				269,926
Operating expenses
Property operating expenses			84,366				80,309
Real estate taxes			28,400				26,031
Net operating income		$	167,463			$	163,586
Net operating income percentage increase over prior year			2.4	%
Net operating income		$	167,463			$	163,586
Straight line rents			(6,713	)			(9,420	)
FAS 141 rents			(4,671	)			(3,677	)
Cash — Net operating income		$	156,079			$	150,489
Cash — Net operating income percentage increase over prior year			3.7	%

The following table is a reconciliation of Net Income to Same Store net operating income:

		Six-months ended June 30,
		2007				2006
Net Income (loss)		$	20,576			$	(14,198	)
Add/(deduct):
Interest income			(2,390	)			(5,223	)
Interest expense			81,161				81,974
Deferred financing costs			2,323				1,273
Equity in income of real estate ventures			(5,258	)			(1,428	)
Depreciation and amortization			120,274				115,357
Net gain on sale of undepreciated real estate			—				(2,608	)
Administrative expenses			14,262				16,214
Minority interest — partners’ share of consolidated real estate ventures			108				(281	)
Minority interest attributable to continuing operations — LP units			(457	)			(1,142	)
Income from discontinued operations			(26,826	)			(6,664	)
Consolidated net operating income			203,773				183,274
Less: Net operating income of non same store properties			(26,120	)			(9,963	)
Less: Eliminations and non-property specific net operating income (loss)			(10,190	)			(9,725	)
Same Store net operating income		$	167,463			$	163,586