Brandywine Realty Trust : Third Quarter 2020 Supplemental

S U P P L E M E N TA L I N F O R M AT I O N PA C K A G E

2020

THIRD

Q U A R T E R

Above: 3151 Market Street, Schuylkill Yards, Philadelphia,

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.