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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Filed pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 9, 1997
BRANDYWINE REALTY TRUST
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(Exact name of registrant as specified in its charter)
MARYLAND 1-9106 23-2413352
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) file number) Identification Number)
16 Campus Boulevard, Newtown Square, Pennsylvania 19073
(Address of principal executive offices)
(610) 325-5600
(Registrant's telephone number, including area code)
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Item 5. Other Events.
See the following press release, dated May 9, 1997, concerning first quarter
1997 results.
NEWS RELEASE
Contact:
For Media Inquiries: For Investor Inquiries:
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Karen Cutler Gerard H. Sweeney
Jennifer McCormick President & CEO or
Tattar Cutler - LD & B Mark Kripke
215-957-0300 Chief Financial Officer
[email protected] Brandywine Realty Trust
610-325-5600
Brandywine Realty Trust Announces
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First Quarter Earnings
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NEWTOWN SQUARE, PA., May 9, 1997 -- Brandywine Realty Trust (BDN-AMEX) reported
today that funds from operation (FFO) were $4.3 million for the first quarter of
1997 versus $0.2 million for the same period in 1996. On a per equivalent share
basis, FFO increased 13% to $0.44 per equivalent share in the first quarter of
1997 from $0.39 per equivalent share in the first quarter of 1996.
Net income for the first quarter of 1997 increased to $2.05 million on revenues
of $8.6 million, up from $10,000 and $1.0 million respectively, for the first
quarter last year. On a per common share basis, first quarter net income
increased 900% to $0.20 per share in the first quarter of 1997 from $0.02 per
share in the first quarter of 1996.
For the quarter ended March 31, 1997, Cash Available for Distribution ("CAD")
equaled $3.9 million ($0.40 per equivalent share).
On March 31, 1997, the Board of Trustees declared a quarterly dividend
distribution of $0.35 per share, payable on April 30, 1997 to shareholders of
record as of April 15, 1997. Based on first quarter results, this represents a
payout ratio of 80% first quarter FFO and 88% of CAD.
The Company also disclosed the following information relating to the first
quarter of 1997:
o During the first quarter the Company announced $56.4 million worth
of new real estate acquisitions. These new acquisitions aggregated
approximately 563,500 square feet and consisted of both office and
industrial properties. Notable acquisitions were: Main Street
complex in Voorhees, NJ (235,000 square feet, seven buildings);
the real estate holding of Columbia Investment Builders, Inc. in
Mount Laurel and Marlton, NJ (290,000 square feet, 5 buildings);
and 1336 Enterprise Drive in East Goshen Township, PA (38,500
square feet).
o The Company also commenced construction of a two story midrise
building located within the Horsham Business Center. This building
approximates 32,000 square feet, is 82% pre-leased and is being
constructed on a site the Company purchased that can accommodate
an
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additional 40,000 square feet. The primary reason for commencing
construction on the property was the Company's need to accommodate
expansion requirements of two existing tenants.
o During the first quarter, as a result of its Main Street
acquisition, the Company acquired three office building pad sites
with 230,000 square feet of development potential in Voorhees, NJ.
Additionally, as part of the Columbia Investment Builders, Inc.
acquisition, the Company acquired a three year option for
approximately 11.2 acres of land with 105,000 square feet of
development potential in Mount Laurel, NJ.
o Through its corporate services operations the Company received fee
revenues of approximately $239,000 from providing real estate
advisory and brokerage services to its third party corporate
clients.
o On February 3, 1997, the Company filed a shelf registration
statement for $500 million. This registration statement was
declared effective by the SEC on February 14, 1997.
o The Company issued 2,375,500 common shares closing on March 4,
1997 at $20 5/8 per share. Proceeds from this equity offering
were used to reduce the Company's debt and acquire Main Street and
several other properties. Proceeds from this offering also enabled
the Company to completely reduce the outstanding principal balance
on its $80 million Credit Facility.
o The Company refinanced a $10.0 million non-recourse first mortgage
loan secured by Midrise I, II and III in Marlton, NJ and the Twin
Forks Office Park in North Carolina. This new loan matures on
January 15, 2002 and carries an effective interest rate of 7.56%.
o The Company's debt to total market capitalization decreased to
16.9% by the end of the first quarter 1997 compared to 17.2% at
December 31, 1996 and 47.5% at the end of the first quarter 1996.
Certain matters discussed in this press release may constitute forward-looking
statements within the meaning of the Federal securities law. Although Brandywine
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 Brandywine'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 from 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 56 commercial and industrial properties containing 3.2
million rentable square feet.
CONFERENCE CALL NOTICE
You are cordially invited to attend a Brandywine Realty Trust Conference Call on
Monday, May 12, 1997 at 3:30 p.m. Eastern time. The moderator 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 Monday,
May 26, 1997 by dialing the number listed above.
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SUPPLEMENTAL INFORMATION PACKAGE
The Company has prepared a Supplemental Information package which includes
financial results and operational statistics to support the announcement of
first quarter earnings. A copy of the Supplemental Information package will be
furnished to you by facsimile or overnight mail upon request. Please direct such
requests to the Company at (610) 325-5600.
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BRANDYWINE REALTY TRUST
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SIGNATURES OF REGISTRANT
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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
(Registrant)
Date: May 9, 1997 By: /s/Gerard H. Sweeney
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Gerard H. Sweeney, President and
Chief Executive Officer
(Principal Executive Officer)
Date: May 9, 1997 By: /s/Mark S. Kripke
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Mark S. Kripke, Chief Financial Officer
and Secretary (Principal Financial
and Accounting Officer)
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