Brandywine Realty Trust · NYSE:BDN
Brandywine Realty Trust — Q4 2020 Earnings Presentation
48 slides from Brandywine Realty Trust's earnings presentation, Feb 3, 2021
Slide 1: Supplemental Information Package
SUPPLEMENTAL INFORMATION PACKAGE brandywine REALTY TRUST FOURTH UARTER BDN NYSE
Slide 2: Table of Contents
Table of Contents Page COVID-19 Update 1 Executive Summary 6 2020 Business Plan Trend Line 8 Development Activity 12 Sources and Uses of Cash and Cash Equivalents 16 Regional Property Overview 17 Net Operating Income Composition 18 Land Inventory 19 Property Activity 20 Leasing Activity 21 Lease Exp
Slide 3: COVID-19 Update: Rent Collections and Tenant Rent Relief
COVID-19 Update BRANDYWINE REALTY PAGE 1 TRUST | Rent Collections and Tenant Rent Relief Strong levels of rent collections during the COVID- Tenant Rent Relief Highlights: 19 pandemic: Co-working Tenants: Approximately 2.0% of Exclusively rent deferrals; no rent rental income. forgiveness or
Slide 4: COVID-19 Update: Balance Sheet & Liquidity
COVID-19 Update BRANDYWINE REALTY PAGE 2 TRUST | Balance Sheet & Liquidity USES Projected $600M currently available on our line of credit. ($ in M) FY 2021 $562M projected availability at 12/31/21 Dividends $130 Revenue Maintaining Cap Ex 35 Well Covered Dividend: $55M of 2021 cash flow after
Slide 5: COVID-19 Update: Tenant Outreach Efforts
COVID-19 Update BRANDYWINE REALTY PAGE 3 TRUST | Tenant Outreach Efforts All of our regional leasing teams have remained in contact with our tenant base to gain insight into tenant sentiment and to explore near term lease extensions. Many jurisdictions still have significant restrictions on tenants
Slide 6: COVID-19 Update: Tenant Outreach Efforts
COVID-19 Update BRANDYWINE REALTY PAGE 4 TRUST | Tenant Outreach Efforts
Slide 7: COVID-19 Update: Engagement Efforts
PAGE COVID-19 Update BRANDYWINE REALTY 5 TRUST | Engagement Efforts We continue to monitor and manage We have partnered with regional Enhanced cleaning procedure and COVID-19 impacts and, as part of our stakeholders such as Southeastern frequency with hospital grade long-term strategy, both our
Slide 8: Q4 2020 Executive Summary
Q4 2020 Executive Summary (unaudited in millions, except square footage and acreage) BRANDYWINE REALTY TRUST | Page 6 Transaction Highlights 3000 Market Rendering | 64,000 SF | Philadelphia, PA 3025 JFK Rendering | 570,000 SF | Philadelphia, PA Bulletin Building| 283,000 SF | Philadelphia, PA Acquis
Slide 9: Q4 2020 Executive Summary
Q4 2020 Executive Summary (unaudited in thousands, except per share data and square footage) BRANDYWINE REALTY TRUST | Page 7 Leasing Highlights Q4 2020 Q3 2020 Quarter end occupancy 91.9% 91.0% Leased as of January 23, 2021 / October 15, 2020 93.0% 92.6% Leases executed in quarter (sq ft) 371,733 2
Slide 10: Business Plan Trend Line
Business Plan Trend Line (unaudited) BRANDYWINE REALTY TRUST | Page 8 2021 Business Plan as of 2020 Business Plan as of Business Plan Component 1/23/2021 Final 4/17/2020 Original Speculative Revenue $18.0 - $22.0 MM $26.4 MM $26.0 MM $31.0 MM Executed $14.7 MM 100% 96% 50% Projected Tenant Retention
Slide 11: Austin Marketplace: Continued Leading Growth
Austin Marketplace: Continued Leading Growth (unaudited) BRANDYWINE REALTY TRUST | Page 9 (From L to R): Broadmoor Block A; Garza Ranch; and Four Points Highlights #1 Fastest Growing Metro (US Census Bureau) The Austin office market has significant construction activity within the BDN Peer Group
Slide 12: Philadelphia Marketplace; Stability with Life Science Momentum
Philadelphia CBD Marketplace (unaudited) BRANDYWINE REALTY TRUST | Page 10 Philadelphia Marketplace; Stability with Life Science Momentum Highlights The city has seen a number of major Life Science funding events in 2019 and 2020 Philadelphia ranks No. 3 in the U.S. for the amount of funding it
Slide 13: Development Summary
Development Summary (unaudited, in thousands, except square feet) BRANDYWINE REALTY TRUST | Page 11 Equity Amount Remaining to be Completion Stabilization Total Project Debt Projected Leased % @ Development (% owned) Location Type Square Feet Capitalization funded at funded at Date Date Costs (a) Fi
Slide 14: Development Activity: 4040 Wilson
Development Activity (unaudited) BRANDYWINE REALTY TRUST | Page 12 4040 Wilson Development (50/50 Real Estate Venture) Design Overview Project Description A 22-level premier mixed-use development featuring Located in the Ballston submarket of Arlington, Virginia 189,000 SF of office space (level
Slide 15: Development Activity: Austin, TX
Development Activity (unaudited) BRANDYWINE REALTY TRUST | Page 13 AUSTIN, TX Overview Broadmoor is a mixed-use, 66 acre transit-oriented community with an extraordinary existing amenity base at the nearby Domain. The campus is home to approximately 840,000 square feet for IBM. Once redeveloped, t
Slide 16: Our Opportunity: Life Sciences
PAGE 14 Our Opportunity: Life Sciences Nationally: While LS employment was down by just 1.3% in July from peak in March, it was 1% higher than a year ago. Biotech R&D employment is strong, up by 4.9% from a year ago. Total commercial lab space has grown by 12% this year to 95 million SF. Another
Slide 17: Development Activity: Philadelphia, PA
Development Activity (unaudited) BRANDYWINE REALTY TRUST | Page 15 PHILADELPHIA, PA Overview Brandywine is the master developer of Schuylkill Yards, a multi-phase 14 acre/5.1 million square foot development of life science, research and academic facilities, office, residential, retail and hospital
Slide 18: Sources and Uses of Cash, Cash Equivalents and Restricted Cash
Sources and Uses of Cash, Cash Equivalents Restricted Cash (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 16 Sources and Uses of Cash Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019 Cash and cash equiv. and restricted cash as of Beg. of Quarter $ 62,995 $ 45,474 $ 53,374 $
Slide 19: Regional Property Overview
Regional Property Overview (unaudited, in thousands, except square footage) BRANDYWINE REALTY TRUST | Page 17 # of Wholly Square Feet Remaining Expirations Net Operating Income at 12/31/2020 Owned % Occupied % Leased (1) Region Properties Total % of Total 2021 2022 Q4 2020 % of Total YTD 2020 % of T
Slide 20: YTD 2020 Net Operating Income Composition
YTD 2020 Net Operating Income Composition (unaudited) BRANDYWINE REALTY TRUST | Page 18 YTD NOI - Wholly Owned (a) YTD NOI - Including JV's Total Core Portfolio NOI: $278.5 MM Total NOI: $307.5 MM 92.0% of NOI from our Core Markets (b) 90.0% of NOI from our Core Markets (b) MAP Venture Other
Slide 21: Q4 2020 Land Inventory
Q4 2020 Land Inventory (unaudited) BRANDYWINE REALTY TRUST | Page 19 Estimated Development Square Feet Acres Active/Pre-Development Projects Philadelphia CBD (a) (b) 57.3 5,700,000 Pennsylvania Suburbs 21.7 535,000 Metropolitan Washington, D.C. 0.8 245,000 Austin, Texas (c) 74.7 6,425,000 Total Acti
Slide 22: Property Activity
Property Activity (unaudited, in thousands, except square footage and acreage) BRANDYWINE REALTY TRUST | Page 20 Square Occupancy % Sales Price Location Type Event Date Feet/Acres @ Event Date 2020 PROPERTY ACTIVITY OFFICE ACQUISITION 250 King of Prussia Road Radnor, PA Office Building 11/30/2020 16
Slide 23: Leasing Activity-Core Portfolio
Leasing Activity-Core Portfolio (1) (unaudited) BRANDYWINE REALTY TRUST | Page 21 Twelve Months Ended Three Months Ended 12/31/2020 12/31/2019 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Total Property Count 78 90 78 89 88 89 90 91 92 92 Total Square Feet
Slide 24: Leasing Activity-Core Portfolio
Leasing Activity-Core Portfolio (1) (unaudited) BRANDYWINE REALTY TRUST | Page 22 Twelve Months Ended Three Months Ended 12/31/2020 12/31/2019 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 New Leases/Expansions (2): Cash Rent Growth Expiring Rate $ 37.62 $ 3
Slide 25: Lease Expiration Analysis
Lease Expiration Analysis (unaudited) BRANDYWINE REALTY TRUST | Page 23 Square Footage Annualized Rent of Expiring Leases (3) Acquired / Year of Lease Lease Revisions (4) Vacated Remaining % of Total Per Square Per Square Initial Expiring Sold / in New Leases Current Final Expiration Leases Expiring
Slide 26: Regional Lease Expiration Analysis
Regional Lease Expiration Analysis (1) (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 24 2020 2021 2022 2023 2024 2025 2026 Thereafter Total Philadelphia CBD Square feet expiring (Net of Acquired/Sold) 115 391 591 129 227 142 123 2,815 4,532 Net leasing activity (115) (150) 10 5 (4) 55 28
Slide 27: Top Twenty Tenants
Top Twenty Tenants (unaudited, annualized rent in thousands) BRANDYWINE REALTY TRUST | Page 25 Weighted Average % of Total Annualized Rent % of Total Remaining Lease Term Top Twenty Tenants Annualized Rent (1) Annualized Rent (1) per Square Foot (1) Square Feet Occupied Square Feet (months) (2) IBM,
Slide 28: Q4 2020 Portfolio Tenant Mix
Q4 2020 Portfolio Tenant Mix (by square footage) BRANDYWINE REALTY TRUST | Page 26 Misc. Services - 4% Health Services - 2% Engineering & Transportation/Public Management Utilities - 4% Services - 9% Real Estate - 5% Other - 2% Finance - 16% Wholesale Trade - 3% Manufacturing - 8% Business Services
Slide 29: Income Statements
Income Statements (unaudited, in thousands, except share data) BRANDYWINE REALTY TRUST | Page 27 Twelve Months Ended Three Months Ended 12/31/2020 12/31/2019 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Revenue Rents $ 513,504 $ 554,665 $ 120,843 $ 121,277
Slide 30: Q4 2020 Same Store Net Operating Income
Q4 2020 Same Store Net Operating Income (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 28 Recently Development/ Completed/ Redevelopment Other/ Same Store Portfolio Acquired (1) (2) Eliminations (3) All Properties Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter Fourth Quarter F
Slide 31: YTD 2020 Same Store Net Operating Income
YTD 2020 Same Store Net Operating Income (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 29 Recently Development/ Completed/ Redevelopment Other/ Same Store Portfolio Acquired (1) (2) Eliminations (3) All Properties Year to Date Year to Date Year to Date Year to Date Year to Date Year to Da
Slide 32: EBITDA and EBITDA Coverage Ratios
EBITDA and EBITDA Coverage Ratios (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 30 Twelve Months Ended Three Months Ended 12/31/2020 12/31/2019 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Net income (loss) $ 307,326 $ 34,529 $ 19,086 $ 276,133 $
Slide 33: Funds from Operations
Funds from Operations (unaudited, in thousands, except share data) BRANDYWINE REALTY TRUST | Page 31 Twelve Months Ended Three Months Ended 12/31/2020 12/31/2019 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Net income (loss) attributable to common sharehold
Slide 34: Cash Available for Distribution
Cash Available for Distribution (unaudited, in thousands, except share data) BRANDYWINE REALTY TRUST | Page 32 Twelve Months Ended Three Months Ended 12/31/2020 12/31/2019 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Funds from operations available to commo
Slide 35: Balance Sheets
Balance Sheets (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 33 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Assets Real estate investments Operating properties $ 3,474,109 $ 3,715,765 $ 3,650,521 $ 4,004,118 $ 4,006,459 $ 3,995,228 $ 4,030,605 $
Slide 36: Liquidity, Leverage and Market Capitalization
Liquidity, Leverage and Market Capitalization (unaudited, in thousands, except shares and per share data) BRANDYWINE REALTY TRUST | Page 34 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 High closing price of common shares $ 12.27 $ 11.75 $ 12.20 $ 16.24 $ 15
Slide 37: Balance Sheet Information/Debt Statistics
Balance Sheet Information/Debt Statistics (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 35 12/31/2020 09/30/2020 06/30/2020 03/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/2019 Fixed rate debt $ 1,500,000 $ 1,588,888 $ 1,811,528 $ 1,813,492 $ 1,815,437 $ 1,617,363 $ 1,619,270 $ 1,621,16
Slide 38: Debt Schedules
Debt Schedules (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 36 12/31/2020 Maturity Stated Effective 12/31/2020 12/31/2019 Debt Instrument Percent of total Date Rate (1) Rate (1) Balance Balance indebtedness Unsecured senior notes payable $350 MM Notes due 2023 February 15, 2023 3.950% 3.
Slide 39: Debt Schedules
Debt Schedules (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 37 12/31/2020 Maturity Stated Effective 12/31/2020 12/31/2019 Debt Instrument Percent of total Date Rate (1) Rate (1) Balance Balance indebtedness Mortgage notes payable Two Logan Square (9) October 21, 2020 3.980% 3.980% $ - $
Slide 40: Debt Maturities
Debt Maturities (7) (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 38 Unsecured Debt Maturity Schedule Percent of Weighted Bank Facilities Senior Notes Total By Year Debt Maturing Average Interest (8) 2021 - - - 0.0% 0.000% 2022 250,000 - 250,000 14.0% 2.868% 2023 - 350,000 350,000 19.0% 3
Slide 41: Debt Maturities
Debt Maturities (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 39 $600,000 Bank Facilities $500,000 Unsecured Notes Balloon Payments $400,000 Scheduled Amortization $300,000 $200,000 $100,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Thereafter % of total 0.0% 14.0% 19.0% 19.0%
Slide 42: Debt Covenant Compliance
Debt Covenant Compliance (unaudited, in millions) BRANDYWINE REALTY TRUST | Page 40 Revolving Credit Agreement dated July 17, 2018 and Amended and Restated Term Loan C Agreement dated December 13, 2018 Covenant Required 12/31/2020 9/30/2020 6/30/2020 3/31/2020 12/31/2019 09/30/2019 06/30/2019 03/31/
Slide 43: JV Property Overview
JV Property Overview (unaudited, in thousands, except square footage) BRANDYWINE REALTY TRUST | Page 41 As of December 31, 2020 BDN's Share BDN Net Operating BDN Unconsolidated Real Initial Project Investment @ Number of Income (Loss) Rentable Percent Percent Ownership Net Operating Rentable Estate
Slide 44: JV Debt Schedule
JV Debt Schedule (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 42 BDN Ownership Stated 12/31/2020 BDN Share Debt Instrument Percentage Maturity Date Rate (1) 12/31/2020 Balance of Venture Debt Office Properties Commerce Square JV 70% April 5, 2023 3.640% $ 219,168 $ 153,418 Mid-Atlantic O
Slide 45: JV Debt Summary
JV Debt Summary (unaudited, in thousands) BRANDYWINE REALTY TRUST | Page 43 Secured Debt Maturity Percent of Weighted Average Scheduled Balloon Partners' Schedule Total BDN Share BDN Share Interest Rate of Amortization Payments Share By Year Maturing Maturing Debt (a) 2021 6,836 141,857 148,693 73,1
Slide 46: Q4 2020 Analyst and Company Information
Q4 2020 Analyst and Company Information BRANDYWINE REALTY TRUST | Page 44 Equity Research Coverage Argus Research D.A. Davidson & Co. JP Morgan Raymond James & Associates Jacob Kilstein Barry Oxford Anthony Paolone Paul Puryear / Bill Crow 646-747-5447 212-240-9871 212-622-6682 727-567-2253 / 727-56
Slide 47: Q4 2020 Disclaimers and Other Information
Q4 2020 Disclaimers and Other Information BRANDYWINE REALTY TRUST | Page 45 Non-GAAP Measures We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it
Slide 48: Q4 2020 Disclaimers and Other Information (continued)
Q4 2020 Disclaimers and Other Information (continued) BRANDYWINE REALTY TRUST | Page 46 Net Operating Income (NOI) (continued) NOI is a useful measure for evaluating the operating performance of our properties, as it excludes certain components from net income available to common shareholders in ord
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