Cover (from L to R): 650 Park Avenue, King of Prussia, PA; 1676 International Drive, Metro D.C.; 500 North Gulph Road, King of Prussia, PA; 4040 Wilson, Metro D.C.; Drexel Square, Philadelphia, PA; 405 Colorado Street, Austin, Texas
Table of Contents
Page
COVID-19 Update
1
Executive Summary
5
2020 Business Plan Trend Line
7
Development Activity
10
Sources and Uses of Cash and Cash Equivalents
15
Regional Property Overview
16
Net Operating Income Composition
17
Land Inventory
18
Property Activity
19
Leasing Activity
20
Lease Expiration Analysis
22
Top Twenty Tenants
24
Portfolio Tenant Mix
25
Income Statements
26
Same Store Net Operating Income Comparison
27
EBITDA and EBITDA Coverage Ratios
29
Funds from Operations and Cash Available for Distribution
30
Balance Sheets and Related Information
32
Debt Schedules
35
Unconsolidated Real Estate Ventures
40
Analyst and Company Information
43
Disclaimers and Other Information
44
Speculative Leasing Update
Leasing & Tenant Update
Strong levels of rent collections during the COVID-
19 pandemic:
Co-workingTenants: Approximately 2.1% of rental income.
Retail Tenants: Approximately 1.3% of rental income.
Rent Collections (as of 10-20-20):
Month
Office
Overall
April
99.9%
99.3%
May
99.8%
99.2%
June
99.9%
99.4%
July
99.9%
99.7%
August
99.7%
99.5%
September
99.6%
99.3%
October
97.0%
96.8%
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Tenant Rent Relief Highlights:
Exclusively rent deferrals; no rent forgiveness or abatements unless associated with a lease extension.
$4.5M of rent relief provided to 59 tenants approximating 922K SF.
Deferrals represent approximately 0.9% of annualized rental revenue
Net rent deferrals included in same store cash NOI for the nine months ended September 30, 2020 totaled $3.8M, of which $536K has already been repaid.
Tenant Outreach Efforts
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All of our regional leasing teams have been in contact with our tenant base to gain insight into tenant sentiment and to explore near term lease extensions.
Tenants returning to work thus far averages approximately 15% across the portfolio; ranging from 8% (Austin) to 25% (Metro DC).
Outreach efforts have resulted in forty-five (45) executed leases to date with another thirty-seven (37) in active negotiations.
Lease Renewal Efforts
Status
#
SF
% of Total
Executed
45
313,071
15%
Lease Negotiations
10
182,505
9%
Active Proposals
27
428,330
20%
Active Efforts
82
923,906
44%
Awaiting Response
34
280,741
13%
Declined by Tenant 1
103
906,619
43%
Total Effort
219
2,111,266
100%
1 See table below
Too early to commit
83
688,469
76%
Likely to vacate
14
145,083
16%
No response
6
73,067
8%
103
906,619
100%
Leasing Pipeline Characteristics
#
SF
Increase
Tours during 3Q20
32
444,179
115%
Tours during 2Q20
22
206,637
Pipeline 2Q20
1,500,000
Lease Executed
(231,000)
New activity (net)
331,000
Pipeline 3Q20
1,600,000
7%
Active lease renewal efforts not yet executed address approximately 25% of our remaining 2021 expirations (excluding large known move-outs) and approximately 40% of all 2022 lease expirations.
Executed deals averaged 24 months in duration with a cash MTM of 2.6% with approximately a 4.2% capital ratio.
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Brandywine Realty Trust published this content on 21 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2020 21:04:02 UTC
Brandywine Realty Trust 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, life science/lab, residential and mixed-use properties. It operates through four segments: Philadelphia Central Business District (Philadelphia CBD), Pennsylvania Suburbs, Austin, Texas, and Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia in 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 Other segment includes properties in Northern Virginia, Washington, D.C., Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. It owns, develops, leases and manages an urban, town center and transit-oriented portfolio comprising 158 properties.