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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) August 7, 1997
BRANDYWINE REALTY TRUST
(Exact name of registrant as specified in its charter)
MARYLAND 1-9106 23-2413352
(State or other jurisdiction (Commission file number) (I.R.S. Employer
of incorporation) Identification Number)
16 Campus Boulevard, Newtown Square, Pennsylvania 19073
(Address of principal executive offices)
(610) 325-5600
(Registrant's telephone number, including area code)
Page 1 of 6 pages
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Item 5. Other Events
See the following press release, dated August 7, 1997, concerning
second quarter 1997 results.
NEWS RELEASE
Contact:
For Media Inquiries:
Karen Cutler
Jennifer McCormick
Tattar Cutler - LD & B
215-957-0300
[email protected]
For Investor Inquiries:
Gerard H. Sweeney
President & CEO or
Mark Kripke
Chief Financial Officer
Brandywine Realty Trust
610-325-5600
Brandywine Realty Trust Announces
Second Quarter Earnings
NEWTOWN SQUARE, PA., August 7, 1997 -- Brandywine Realty Trust
(BDN-AMEX) reported today that funds from operations (FFO) were
$5.0 million for the second quarter of 1997 versus $0.2 million
for the same period in 1996. On a per equivalent share basis, FFO
increased 37.5% to $0.44 per equivalent share in the second quarter
of 1997 from $0.32 per equivalent share in the second quarter of
1996.
Net income for the second quarter increased to $1.7 million on
revenues of $12.1 million, up from a loss of $9 thousand on
revenues of $1 million, for the second quarter last year. On a
per common share basis, second quarter net income increased to
$0.17 per share from a loss of $0.01 per share in the second
quarter of 1996.
For the quarter ended June 30, 1997, Cash Available for
Distribution ("CAD") equaled $4.5 million ($0.40 per equivalent
share).
On June 23, 1997, the Board of Trustees declared a quarterly
dividend distribution of $0.36 per share, paid on July 10, 1997 to
shareholders of record as of June 30, 1997. This
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represents a 2.9% increase over the first quarter dividend and is
the fourth time in five quarters that the Company has increased its
dividend. Based on second quarter results this represents a payout
ratio of 82.0% of FFO and 90.6% of CAD.
The Company also disclosed the following information relating to
the second quarter of 1997:
- During the second quarter the Company announced $135.2
million of real estate purchases. These acquisitions
aggregated approximately 1.8 million square feet and
consisted of both office and industrial properties.
Second quarter property purchases included the
acquisition from TA Realty, consisting of a 10 office and
industrial building portfolio aggregating 687,000 square
feet for $41.6 million, and the purchase of a six office
building portfolio from Emmes, aggregating 608,000 square
feet for $66.2 million. The Company also purchased
approximately 202,000 square feet of office space in
southern New Jersey from private investment companies for
$14.5 million. Additionally, the Company acquired 1974
Sproul Road in Delaware County, PA. This property
contains 63,000 square feet and was purchased for $4.1
million. The Company also purchased two warehouse
buildings aggregating 125,000 square feet in King of
Prussia, PA for $3.5 million and two office buildings
aggregating 65,000 square feet in Exton, PA for $5.3
million.
- The Company has increased its Secured Credit Facility
from $80 million to $150 million.
- During the quarter the Company announced several key
personnel additions, which strengthened the financial
reporting, property management and property acquisition
functions.
- Horsham Business Center 17, the Company's project under
construction is approximately 90% completed with
occupancy projected to start during September, 1997. The
property is currently 72% pre-leased. The Company also
controls an adjoining parcel of land that can accommodate
an additional 40,000 square feet.
- As a result of its acquisition activities, at the end of
the second quarter, the Company owned or controlled 76.3
acres which can accommodate 590,000 square feet of
office and 300,000 square feet of industrial development.
The Company owns or controls parcels located in Voorhees,
NJ (230,000 square feet of office development); Mount
Laurel, NJ (105,000 square feet of office development);
Westhampton, NJ (300,000 square feet of industrial
development) and the aforementioned 40,000 square feet in
Horsham, PA. In addition, the Company has under
agreement two land parcels in Newtown Square Corporate
Center of 25 acres that can accommodate 215,000 square
feet of office development.
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- During July, 1997, the Company consummated an offering of
10,000,000 common shares which raised approximately $207
million of gross proceeds. At the end of July the
Company purchased Berwyn Park (241,000 square feet)
located in Tredyffrin Township, PA, and Green Hills
Corporate Center (574,000 square feet) located in Berks
County, PA. Both of these acquisitions included
significant land holdings that can accommodate future
development. In the case of Berwyn Park, the Company
acquired an approved site of 12.5 acres that can
accommodate 130,000 square feet and with Green Hills
Corporate Center, the Company acquired a total of 182
acres of improved and unimproved land.
- The Company's debt to total market capitalization was
43.5% at the end of the second quarter 1997. After
application of net proceeds from the equity offering,
based upon the $20.75 offering price per share, the
Company's debt to total market capitalization decreased
to 12.3%.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the Federal
securities law. Although the Company believes that the
expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its
expectations will be achieved. Factors that could cause actual
results to differ materially from the Company's current
expectations include general economic conditions, local real estate
conditions, timely releasing of occupied square footage upon
expiration, interest rates, availability of equity and debt
financing and other risks detailed from time to time in the
company's filings with the Securities and Exchange Commission,
including quarterly reports on Form 10-Q, reports on Form 8-K and
annual reports on Form 10-K.
Brandywine Realty Trust, a fully integrated real estate company,
with headquarters in Newtown Square and regional offices in
Marlton, NJ, Bensalem and King of Prussia, PA., is one of the
Delaware Valley's largest real estate investment companies with 83
commercial and industrial properties containing 5.1 million
rentable square feet.
CONFERENCE CALL NOTICE
You are cordially invited to attend a Brandywine Realty Trust
Conference Call on Friday, August 8, 1997 at 11:30 a.m. Eastern
time. The host will be Gerard H. Sweeney, President and Chief
Executive Officer. The telephone number for the conference call is
1-800-869-6642. A taped replay of the call can be accessed after
the call during the hours of 7:00 a.m. to 9:00 p.m. EDT, through
Friday, August 22, 1997 by dialing the number listed above.
SUPPLEMENTAL INFORMATION PACKAGE
The Company has prepared a Supplemental Information package which
includes financial results and operational statistics to support
the announcement of second quarter earnings. A copy of the
Supplemental Information package will be furnished to you by
facsimile
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or overnight mail upon request. Please direct such requests to the
Company at (610) 325-5600.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
BRANDYWINE REALTY TRUST
Date: August 7, 1997 By: /s/ Gerard H. Sweeney
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Gerard H. Sweeney, President and
Chief Executive Officer
(Principal Executive Officer)
Date: August 7, 1997 By: /s/ Mark S. Kripke
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Mark S. Kripke, Chief Financial
Officer and Secretary (Principal
Financial and Accounting Officer)
