Boston, MA 05/13/2014 (wallstreetpr) – Brandywine Realty Trust (NYSE:BDN)’s total revenues increased by 9% to $152.1 million (1Q2013: $139.6 million) due to 4.7% YoY increase in same store revenues, $14.8 million from the acquisition, and 11% YoY increase in redevelopment of properties.
In 1Q2014, net operating income (NOI) from its 196 same store properties increased by 4% on the cash basis. It excludes termination revenues and other income. The occupancy rate improved during the quarter to 89.3% from 87.8% in the same quarter 2013.
The core portfolio maintained tenant retention ratio of 56.3%. The reported (GAAP) rental rate grew by 6.7% due to 0.1% YoY increase in renewal rental rate and 18.1% YoY increase in new lease or expansion rental rate.
Brandywine Realty Trust (NYSE:BDN) has core portfolios of 200 properties as of March 31, 2014 that comprises of 24 million square feet, with occupancy of 89.2%, which include leasing properties of 91.2%.
Cash available for distribution (CAD)
The Trust generated funds from operations (FFO) of $53.6 million or $0.34 per diluted share (1Q2013: $51.7 million or $0.35 per diluted share) and incurred capital expenditures of $14.7 million. As a result, the CAD for the period was $34.5 million or $0.22 per diluted share (1Q2013: $33.1 million or $0.23 per diluted share) that improved the CAD payout ratio to 68.2%.
Liquidity position
As of March 31, 2014, Brandywine Realty Trust (NYSE:BDN)’s net debt to gross assets was 42.6%, with revolving credit facility of $600 million and cash balance of $236.3 million. During the period, the interest coverage ratio was 2.7x with net debt/EBITDA ratio of 7.1x.
Conclusion
Brandywine Realty Trust (NYSE:BDN)’s product portfolio will deliver positive performance with the recovery in the market. It expects growth in the same store NOI at a range of 4%-6% on the cash basis, and 6%-8% increase (GAAP) in lease rates, in 2014. The occupancy rate will improve to 91-92%, of which, 93-94% will be under leasing. Therefore, the Trust raised its FFO guidance for the year 2014 to a range of $1.42 to $1.48 per diluted share.
