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

Date of Report (Date of earliest event reported): February 20, 2008

Brandywine Realty Trust
Brandywine Operating Partnership, L.P.

(Exact name of registrant as specified in charter)

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

555 East Lancaster Avenue, Suite 100
Radnor, PA 19087
(Address of principal executive offices)

(610) 325-5600
(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 February 20, 2008, we issued a press release announcing our financial results for the three- and nine-months ending September 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 February 20, 2008

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.

EXHIBIT INDEX

Exhibit
No.		Description
99.1		Press Release dated February 20, 2008

Exhibit 99.1

Press Contact:       Marge Boccuti       Manager, Investor Relations       610-832-7702       marge.boccuti@bdnreit.com						Investor Contact:       Howard M. Sipzner       EVP & CFO        610-832-4907        howard.sipzner@bdnreit.com

Brandywine Realty Trust Announces Fourth Quarter and Full Year 2007 Earnings and
Provides 2008 Earnings and FFO Guidance

Radnor, PA, February 20, 2008 — 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 twelve month periods ended December 31, 2007.

Financial Highlights

	§		Funds from operations (FFO) totaled $53.5 million or $0.59 per diluted share in the fourth quarter of 2007, compared to $59.0 million or $0.63 per diluted share in the fourth quarter of 2006. FFO in the fourth quarter of 2007 included a $3.7 million non-cash charge ($0.04 per diluted share) related to the settlement of an expired hedging agreement.
	§		Net income totaled $31.5 million or $0.36 per diluted share in the fourth quarter of 2007, compared to $22.1 million or $0.25 per diluted share in the fourth quarter of 2006. Net income in the fourth quarter of 2007 included a $40.5 million gain on the disposition of real estate related to the formation of our joint venture with DRA Advisors LLC and the $3.7 million hedge settlement expense, while net income in the fourth quarter of 2006 included an $11.6 million gain on the disposition of undepreciated real estate and a $15.1 million gain on the disposition of discontinued real estate.
	§		Funds from operations totaled $233.0 million or $2.55 per diluted share in 2007, compared to $234.9 million or $2.49 per diluted share in 2006. FFO in 2007 included the $3.7 million ($0.04 per diluted share) hedge settlement expense. Our FFO payout ratio (common stock dividend divided by FFO per share) for 2007 was 69.0% versus 70.7% in 2006.
	§		Net income totaled $48.5 million or $0.55 per diluted share for 2007, compared to $2.5 million or $0.03 per diluted share for 2006. Net income in 2007 included the $40.5 million gain on the disposition of real estate related to the formation of our joint venture with DRA Advisors, a $25.7 million gain on the disposition of discontinued real estate and the $3.7 million hedge settlement expense, while net income in 2006 included a $14.2 million gain on the disposition of undepreciated real estate, a $20.2 million gain on the disposition of discontinued real estate and a $3.1 million gain on the settlement of a purchase contract.

Portfolio Highlights

	§		At December 31, 2007, our core portfolio was 93.9% occupied and 94.7% leased (reflecting leases commencing after December 31, 2007) versus 91.5% and 93.2%, respectively, at December 31, 2006. We owned 257 properties at December 31, 2007, encompassing 243 properties in our core portfolio and 14 properties under development or redevelopment.
	§		In 2007, our net operating income (NOI) for our same store portfolio increased 1.1% on a GAAP basis and 1.6% on a cash basis for the 225 same store properties which were 93.5% occupied on December 31, 2007 versus 93.3% occupied on December 31, 2006. Our overall NOI margin on a GAAP basis was 61.3% for 2007 versus 61.4% for 2006.

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

§

For all of 2007, our core portfolio retention rate was 72.8% with positive net absorption of 294,805 square feet. In the fourth quarter of 2007, we achieved a 6.6% increase on our renewal rental rates and a 2.7% increase on our new lease rental rates, both on a GAAP basis.

Investment Highlights

	§		We acquired no properties in the fourth quarter of 2007.
	§		During the fourth quarter of 2007, we sold two office properties, 111/113 Pencader Drive in Newark, Delaware and 2490 Boulevard of the Generals in West Norriton, Pennsylvania, for $5.1 million and $1.5 million, respectively, and realized total gains on the sales of $0.3 million. As previously disclosed on December 20, 2007, we also completed the sale and contribution of a portfolio of 29 suburban Philadelphia office properties to a joint venture consisting of DRA Advisors LLC with an 80% interest and affiliates of Brandywine Realty Trust with a 20% interest. We sold the venture an 89% interest in three of the properties, and sold or contributed 100% interests in the rest. The overall portfolio was valued at $245.4 million (reflecting 100% interests throughout). In conjunction with the sale and contribution, we realized $230.9 million of net proceeds after deducting our transaction expenses, and recorded a gain on the sale and contribution of $40.5 million.
	§		At December 31, 2007, we were actively proceeding on seven ground-up office developments and seven office redevelopments with a total identified cost of $718.3 million of which $442.6 million remained to be funded. These amounts include $375.0 million of costs for the combined 30th Street Post Office and garage development in Philadelphia, Pennsylvania of which $331.9 million remained to be funded at December 31, 2007, for the most part in 2009 and 2010. Since September 30, 2007, we have signed a series of new leases aggregating 301,487 square feet, bringing the total leasing rate to 57.5 % for our seven ground-up developments and to 69.4% for our seven redevelopments.

Capital Markets Highlights

	§		During the fourth quarter of 2007, we closed and funded a $150.0 million, three-year unsecured term loan with a floating rate of LIBOR plus 80 basis points. The net proceeds were used to reduce indebtedness under our unsecured revolving credit facilities.
	§		At December 31, 2007, our net debt to gross assets measured 53.6% compared to 52.0% at December 31, 2006 and 54.3% at September 30, 2007. At December 31, 2007, we had $475.7 million available for use and drawdown under our various credit facilities.
	§		We achieved 2.5 times interest coverage ratio for the year ended December 31, 2007 versus 2.4 for the year ended December 31, 2006.

“Throughout the year, we have maintained consistently high levels of occupancy, retention and absorption in our core portfolio, while continuing to reduce the capital outlays to achieve these results,” stated Gerard H. Sweeney, President and CEO of Brandywine Realty Trust. “Our joint venture with DRA Advisors has established a good, alternative source of capital and we hope to increase our activities in this area as part of our overall capital recycling and balance sheet strengthening initiatives. We have also had some recent success in the lease-up of our development and redevelopment projects and will continue to push hard on that front. Our 2008 business and capital plans reflect a somewhat more cautious view on the economy, yet reinforce our commitment to maximizing total shareholder return. On a personal note, I want to thank Mike Prentiss and Tom August, our departing board trustees, for their fine service and contributions to Brandywine and wish them well in their future endeavors.”

Distributions

On December 11, 2007, our Board of Trustees declared a quarterly dividend distribution of $0.44 per common share that was paid on January 18, 2008 to shareholders of record as of January 4, 2008. 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 January 15, 2008 to holders of record as of December 30, 2007 of the Series C and Series D Preferred Shares, respectively.

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 did not purchase any shares in the fourth quarter of 2007 or to date in 2008 and may discontinue the program at any time.

2008 Earnings and 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 introducing FFO guidance for full year 2008 to be in a range of $2.46 to $2.56 per diluted share. 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 2008		Range or Value
Earnings per diluted share allocated to common shareholders		$	0.06			to				$	0.16
Plus: real estate depreciation and amortization			2.40								2.40
FFO per diluted share		$	2.46			to				$	2.56

Key assumptions in our guidance range include same store NOI growth (GAAP) of 0.5%-1.0% incorporating a 100 basis point increase in occupancy by year-end 2008, flat to slightly higher operating expenses/real estate taxes, a 3.0%-5.0% mark-to-market on our new lease rental rates and a 3.0%-4.5% mark-to-market on our renewal rental rates. We are assuming general and administrative expenses of $25.0-$27.0 million and interest expenses (net of capitalized interest for development activity) and deferred financing fees of $153.0-$160.0 million. For 2008, we are projecting approximately $2.5-$3.0 million of incremental NOI from five key ground-up developments — South Lake, 2100 Franklin, Barton Creek, Metroplex I and 1200 Lenox Drive — and are targeting year-end occupancy for this group to be in a range of 30.0%-35.0%. For other income categories including termination fees, management income, interest income, income from joint ventures and certain other items, we are targeting a range of $30.0-$38.0 million compared to $47.0 million in 2007. Lastly, our 2008 projections reflect aggregate sale activity of $155.0-$162.0 million at a 7.5%-8.0% capitalization rate, no acquisitions, no new development starts and no stock buyback activity.

For guidance purposes, we have not considered any future gains from the sale of real estate not previously disclosed. Our 2008 FFO guidance does not include any income from the sale of undepreciated real estate, in accordance with our current 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.

Fourth Quarter Earnings Call and Supplemental Information Package

We will host a conference call on Thursday, February 21, 2008 at 11:00 a.m. EST. The conference call can be accessed by calling 1-800-683-1525 and referencing conference ID #30236098. Beginning two hours after the conference call, a taped replay of the call can be accessed 24 hours a day through Thursday, March 6, 2008 by calling 1-800-642-1687 and providing access code 30236098. 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 fourth 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 — First Quarter 2008 Conference Call

We anticipate that we will release our first quarter 2008 earnings on Wednesday, April 30, 2008, after the market close and will host our first quarter 2008 conference call on Thursday, May 1, 2008, 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 42 million square feet, including 29 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)

		December 31,				December 31,
		2007				2006
ASSETS
Real estate investments:
Operating properties		$	4,813,563			$	4,927,305
Accumulated depreciation			(558,908	)			(515,698	)
			4,254,655				4,411,607
Development land and construction-in-progress			402,270				328,119
			4,656,925				4,739,726
Cash and cash equivalents			5,600				25,379
Accounts receivable, net			17,057				19,957
Accrued rent receivable, net			83,098				71,589
Assets held for sale, net			—				126,016
Investment in real estate ventures			71,598				74,574
Deferred costs, net			87,123				73,708
Intangible assets, net			218,149				281,251
Other assets			74,549				96,818
Total assets		$	5,214,099			$	5,509,018
LIABILITIES AND BENEFICIARIES’ EQUITY
Mortgage notes payable, including premiums		$	611,898			$	883,920
Unsecured term loan			150,000				—
Borrowings under credit facilities			130,727				60,000
Unsecured senior notes, net of discounts			2,208,344				2,208,310
Accounts payable and accrued expenses			80,732				108,400
Distributions payable			42,368				42,760
Tenant security deposits and deferred rents			65,241				55,697
Acquired lease intangibles, net			67,281				92,527
Other liabilities			30,154				14,661
Mortgage note payable and other liabilities held for sale, net			—				20,826
Total liabilities			3,386,745				3,487,101
Minority interest			84,119				123,991
Beneficiaries’ equity:
Preferred shares — Series C			20				20
Preferred shares — Series D			23				23
Common shares			870				883
Additional paid-in capital			2,319,412				2,311,541
Common shares in treasury			(53,449	)			—
Cumulative earnings			480,215				423,764
Accumulated other comprehensive (loss) income			(1,885	)			1,576
Cumulative distributions			(1,001,971	)			(839,881	)
Total beneficiaries’ equity			1,743,235				1,897,926
Total liabilities and beneficiaries’ equity		$	5,214,099			$	5,509,018

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

		Three Months Ended December 31,									Twelve Months Ended December 31,
		2007				2006					2007				2006
Revenue
Rents		$	144,275			$	134,799				$	562,514			$	519,282
Tenant reimbursements			22,255				24,138					85,404				78,817
Termination fees			760				712					10,236				7,231
Third party management fees, labor reimbursement and leasing			5,572				4,268					19,691				19,453
Other			1,296				1,988					6,127				5,502
Total revenue			174,158				165,905					683,972				630,285
Operating Expenses
Property operating expenses			49,264				43,340					189,130				171,924
Real estate taxes			16,655				16,540					64,895				60,808
Management expenses			2,862				2,203					10,361				10,675
Depreciation and amortization			60,648				55,179					242,312				230,710
General & administrative expenses			6,468				6,940					28,182				29,644
Total operating expenses			135,897				124,202					534,880				503,761
Operating income			38,261				41,703					149,092				126,524
Other income (expense)
Interest income			590				1,811					4,040				9,513
Interest expense			(40,646	)			(44,698	)				(162,675	)			(171,177	)
Deferred financing costs			(1,115	)			(2,545	)				(4,496	)			(4,607	)
Loss on settlement of treasury lock agreements			(3,698	)			—					(3,698	)			—
Equity in income of real estate ventures			934				367					6,955				2,165
Net gain on disposition of depreciated real estate			40,498				—					40,498				—
Net gain on disposition of undepreciated real estate			—				11,582					421				14,190
Gain on termination of purchase contract			—				—					—				3,147
Income (loss) before minority interest and discontinued operations			34,824				8,220					30,137				(20,245	)
Minority interest — partners’ share of consolidated real estate ventures			(362	)			(290	)				(465	)			270
Minority interest attributable to continuing operations — LP units			(1,372	)			(259	)				(911	)			1,246
Income (loss) from continuing operations			33,090				7,671					28,761				(18,729	)
Discontinued operations:
Income from discontinued operations			187				2,166					3,184				12,597
Net gain on disposition of discontinued operations			252				15,055					25,743				20,243
Minority interest — partners’ share of consolidated real estate venture			—				—					—				(2,239	)
Minority interest attributable to discontinued operations — LP units			(19	)			(776	)				(1,235	)			(1,390	)
			420				16,445					27,692				29,211
Net income (loss)			33,510				24,116					56,453				10,482
Income allocated to Preferred Shares			(1,998	)			(1,998	)				(7,992	)			(7,992	)
Income (loss) allocated to Common Shares		$	31,512			$	22,118				$	48,461			$	2,490
PER SHARE DATA
Basic income (loss) per Common Share		$	0.36			$	0.25				$	0.56			$	0.03
Basic weighted-average shares outstanding			86,843,035				88,331,988					87,272,148				89,552,301
Diluted income (loss) per Common Share		$	0.36			$	0.25				$	0.55			$	0.03
Diluted weighted-average shares outstanding			87,039,547				89,186,374					87,321,276				90,070,825

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

		Three Months Ended December 31,									Twelve Months Ended December 31,
		2007				2006					2007				2006
Reconciliation of Net Income to Funds from Operations (FFO):
Net income (loss) allocated to common shares		$	31,512			$	22,118				$	48,461			$	2,490
Add (deduct):
Minority interest attributable to continuing operations — LP units			1,372				259					911				(1,246	)
Net gains on sale of depreciated real estate			(40,498	)			—					(40,498	)			—
Net gains on sale of undepreciated real estate			—				(11,582	)				(421	)			(14,190	)
Minority interest attributable to discontinued operations — LP units			19				776					1,235				1,390
Net loss (gain) on disposition of discontinued operations			(252	)			(15,055	)				(25,743	)			(20,243	)
Minority interest — partners’ share of net gain on sale			—				—					—				1,757
Loss before net gains on sale of interests in real estate and minority interest			(7,847	)			(3,484	)				(16,055	)			(30,042	)
Add:
Depreciation and amortization:
Real property — continuing operations			43,693				38,051					174,245				165,477
Leasing costs (includes acquired intangibles) — continuing operations			16,306				16,813					65,489				64,385
Real property — discontinued operations			27				4,505					2,769				20,322
Leasing costs (includes acquired intangibles) — discontinued operations			1				2,912					1,979				14,385
Company’s share of unconsolidated real estate ventures			1,495				1,722					6,197				6,740
Partners’ share of consolidated real estate ventures			(223	)			(1,554	)				(1,578	)			(6,381	)
Funds from operations		$	53,452			$	58,965				$	233,046			$	234,886
FFO per share — fully diluted		$	0.59			$	0.63				$	2.55			$	2.49
Weighted-average shares/units outstanding — fully diluted			90,879,389				93,361,536					91,532,534				94,419,070
Distributions per Common Share		$	0.44			$	0.44				$	1.76			$	1.76
Payout ratio of FFO (Distribution per Common Share divided by FFO per Share)			74.6	%			69.8	%				69.0	%			70.7	%
CASH AVAILABLE FOR DISTRIBUTION (CAD):
Funds from operations		$	53,452			$	58,965				$	233,046			$	234,886
Add (deduct):
Rental income from straight-line rent			(8,043	)			(9,133	)				(28,304	)			(32,618	)
Deferred market rental income			(2,914	)			(2,967	)				(12,226	)			(9,034	)
Operating expense from straight-line rent			383				291					1,523				291
Net gains on sale of undepreciated real estate			—				11,582					421				14,190
Loss on settlement of treasury lock agreements			3,698				—					—				—
Revenue maintaining capital expenditures
Building improvements			(1,751	)			(3,114	)				(7,075	)			(9,861	)
Tenant improvements			(9,496	)			(10,874	)				(42,277	)			(32,299	)
Lease commissions			(2,382	)			(2,852	)				(11,442	)			(9,069	)
Total revenue maintaining capital expenditures			(13,629	)			(16,840	)				(60,794	)			(51,229	)
Cash available for distribution		$	32,947			$	41,898				$	133,666			$	156,486
CAD per share — fully diluted		$	0.36			$	0.45				$	1.46			$	1.66
Weighted-average shares/units outstanding — fully diluted			90,879,389				93,361,536					91,532,534				94,419,070
Distributions per Common Share		$	0.44			$	0.44				$	1.76			$	1.76
Payout ratio of CAD (Distribution per Common Share divided by CAD per Share)			122.2	%			97.8	%				120.5	%			106.0	%

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

Of the 257 properties owned by the Company as of December 31, 2007, a total of 225 properties (“Same Store Properties”) containing an aggregate of 21.9 million net rentable square feet were owned for the entire twelve month periods ended December 31, 2007 and 2006. Average occupancy for the Same Store Properties was 93.4% during 2007 and 92.8% during 2006. The following table sets forth revenue and expense information for the Same Store Properties:

		Twelve-months ended December 31,
		2007				2006 (a)
Revenue
Rents		$	444,078			$	439,972
Tenant reimbursements			72,521				69,378
Termination fees			9,137				6,625
Other			2,488				2,815
			528,224				518,790
Operating expenses
Property operating expenses			159,265				154,340
Real estate taxes			52,227				51,311
Net operating income		$	316,732			$	313,139
Net operating income percentage increase over prior year			1.1	%
Net operating income		$	316,732			$	313,139
Straight line rents			(12,808	)			(15,214	)
FAS 141 rents			(8,561	)			(7,331	)
Cash — Net operating income		$	295,363			$	290,594
Cash — Net operating income percentage increase over prior year			1.6	%

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

		Twelve-months ended December 31,
		2007				2006
Net Income		$	56,453			$	10,482
Add/(deduct):
Interest income			(4,040	)			(9,513	)
Interest expense			162,675				171,177
Deferred financing costs			4,496				4,607
Loss on settlement of treasury lock agreements			3,698				—
Equity in income of real estate ventures			(6,955	)			(2,165	)
Depreciation and amortization			242,312				230,710
Net gain on sale of depreciated real estate			(40,498	)			—
Net gain on sale of undepreciated real estate			(421	)			(14,190	)
Gain on termination of purchase contract			—				(3,147	)
General & administrative expenses			28,182				29,644
Minority interest — partners’ share of consolidated real estate ventures			465				(270	)
Minority interest attributable to continuing operations — LP units			911				(1,246	)
Income from discontinued operations			(27,692	)			(29,211	)
Consolidated net operating income			419,586				386,878
Less: Net operating income of non same store properties			(65,286	)			(36,518	)
Less: Eliminations and non-property specific net operating income (loss)			(37,568	)			(37,221	) (a)
Same Store net operating income		$	316,732			$	313,139

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

Of the 257 properties owned by the Company as of December 31, 2007, a total of 228 properties (“Same Store Properties”) containing an aggregate of 22.5 million net rentable square feet were owned for the entire three month periods ended December 31, 2007 and 2006. Average occupancy for the Same Store Properties was 93.8% during 2007 and 93.2% during 2006. The following table sets forth revenue and expense information for the Same Store Properties:

		Three-months ended December 31,
		2007				2006
Revenue
Rents		$	115,745			$	114,581
Tenant reimbursements			18,360				21,628
Termination fees			629				369
Other			442				659
			135,176				137,237
Operating expenses
Property operating expenses			40,571				40,424
Real estate taxes			13,713				14,478
Net operating income		$	80,892			$	82,335
Net operating income percentage increase over prior year			-1.8	%
Net operating income		$	80,892			$	82,335
Straight line rents			(4,316	)			(3,657	)
FAS 141 rents			(2,441	)			(2,664	)
Cash — Net operating income		$	74,135			$	76,014
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 December 31,
		2007				2006
Net Income		$	33,510			$	24,116
Add/(deduct):
Interest income			(590	)			(1,811	)
Interest expense			40,646				44,698
Deferred financing costs			1,115				2,545
Loss on settlement of treasury lock agreements			3,698				—
Equity in income of real estate ventures			(934	)			(367	)
Depreciation and amortization			60,648				55,179
Net gain on sale of depreciated real estate			(40,498	)			—
Net gain on sale of undepreciated real estate			—				(11,582	)
General & administrative expenses			6,468				6,940
Minority interest — partners’ share of consolidated real estate ventures			362				290
Minority interest attributable to continuing operations — LP units			1,372				259
Income from discontinued operations			(420	)			(16,445	)
Consolidated net operating income			105,377				103,822
Less: Net operating income of non same store properties			(15,493	)			(9,302	)
Less: Eliminations and non-property specific net operating income (loss)			(8,992	)			(12,185	)
Same Store net operating income		$	80,892			$	82,335