EX-99.1 2 bdn8-kex991.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

Revision of Previously Issued Financial Statements
In the June 30, 2019 Form 10-Q, the Company’s first quarter 2019 results and comparative 2018 results were adjusted to correct for the effects of errors discovered during the second quarter of 2019 relating to the purchase price allocation and depreciable lives for two acquisitions made in a prior period. As further disclosed in the June 30, 2019 Form 10-Q, the Company evaluated the impact of the errors to previously issued financial statements and concluded that the errors were immaterial to the previously issued financial statements, however, to correct the cumulative effect of the errors in 2019 would significantly impact the 2019 financial statements. See Note 2 to the consolidated financial statements in the June 30, 2019 Form 10-Q for further detail.
The following tables and paragraphs present line items from the Company’s Form 10-K for the year ended December 31, 2018 that have been corrected as a result of the revision:
 
December 31, 2017
Balance Sheet:
As previously reported
 
Adjustments
 
As adjusted
Assets (Parent Company and Operating Partnership)
(in thousands)
Operating properties
3,832,348

 
(1,524
)
 
3,830,824

Accumulated depreciation
(895,091
)
 
(18,206
)
 
(913,297
)
Operating real estate investments, net
2,937,257

 
(19,730
)
 
2,917,527

Total real estate investment, net
3,156,687

 
(19,730
)
 
3,136,957

Total assets
3,995,448

 
(19,730
)
 
3,975,718

 
 
 
 
 
 
Equity (Parent Company)
 
 
 
 
 
Additional paid-in-capital
3,218,564

 
(487
)
 
3,218,077

Cumulative Earnings
660,174

 
(19,081
)
 
641,093

Total Brandywine Realty Trust's equity
1,829,180

 
(19,568
)
 
1,809,612

Noncontrolling interests
17,420

 
(162
)
 
17,258

Total beneficiaries' equity
1,846,600

 
(19,730
)
 
1,826,870

Total liabilities and beneficiaries' equity
3,995,448

 
(19,730
)
 
3,975,718

 
 
 
 
 
 
Equity (Operating Partnership)
 
 
 
 
 
General Partnership Capital
1,815,411

 
(19,730
)
 
1,795,681

Total Brandywine Operating Partnership, L.P.'s equity
1,817,467

 
(19,730
)
 
1,797,737

Total partners' equity
1,819,682

 
(19,730
)
 
1,799,952

Total liabilities and partners' equity
3,995,448

 
(19,730
)
 
3,975,718




 
September 30, 2018
Balance Sheet:
As previously reported
 
Adjustments
 
As adjusted
Assets (Parent Company and Operating Partnership)
(in thousands)
Operating properties
3,429,048

 
(1,581
)
 
3,427,467

Accumulated depreciation
(845,674
)
 
(18,928
)
 
(864,602
)
Operating real estate investments, net
2,583,374

 
(20,509
)
 
2,562,865

Total real estate investment, net
2,858,127

 
(20,509
)
 
2,837,618

Total assets
3,923,622

 
(20,509
)
 
3,903,113

 
 
 
 
 
 
Equity (Parent Company)
 
 
 
 
 
Additional paid-in-capital
3,223,817

 
(499
)
 
3,223,318

Cumulative Earnings
674,599

 
(20,509
)
 
654,090

Total Brandywine Realty Trust's equity
1,759,979

 
(21,008
)
 
1,738,971

Noncontrolling interests
16,824

 
(155
)
 
16,669

Total beneficiaries' equity
1,776,803

 
(21,163
)
 
1,755,640

Total liabilities and beneficiaries' equity
3,923,622

 
(21,163
)
 
3,902,459

 
 
 
 
 
 
Equity (Operating Partnership)
 
 
 
 
 
General Partnership Capital
1,741,379

 
(20,509
)
 
1,720,870

Total Brandywine Operating Partnership, L.P.'s equity
1,751,341

 
(20,509
)
 
1,730,832

Total partners' equity
1,753,564

 
(20,509
)
 
1,733,055

Total liabilities and partners' equity
3,923,622

 
(20,509
)
 
3,903,113





Brandywine Realty Trust
As previously reported
 
Adjustments
 
As adjusted
Statement of Beneficiaries' Equity:
(in thousands)
Additional paid-in-capital, December 31, 2015
3,252,622

 
(512
)
 
3,252,110

Cumulative earnings, December 31, 2015
499,086

 
(17,362
)
 
481,724

Noncontrolling interests, December 31, 2015
18,166

 
(122
)
 
18,044

Additional paid-in-capital, December 31, 2016
3,258,870

 
(484
)
 
3,258,386

Cumulative earnings, December 31, 2016
539,319

 
(18,405
)
 
520,914

Noncontrolling interests, December 31, 2016
17,093

 
(160
)
 
16,933

Additional paid-in-capital, December 31, 2017
3,218,564

 
(487
)
 
3,218,077

Cumulative earnings, December 31, 2017
660,174

 
(19,081
)
 
641,093

Noncontrolling interests, December 31, 2017
17,420

 
(162
)
 
17,258

Additional paid-in-capital, September 30, 2018
3,223,817

 
(499
)
 
3,223,318

Cumulative earnings, September 30, 2018
674,599

 
(19,855
)
 
654,744

Noncontrolling interests, September 30, 2018
16,824

 
(155
)
 
16,669

 
 
 
 
 
 
Brandywine Operating Partnership
 
 
 
 
 
Statement of Partners' Equity:
 
 
 
 
 
Partner Capital, December 31, 2015
1,836,692

 
(17,996
)
 
1,818,696

Partner Capital, December 31, 2016
1,762,694

 
(19,049
)
 
1,743,645

Partner Capital, December 31, 2017
1,815,411

 
(19,730
)
 
1,795,681

Partner Capital, September 30, 2018
1,741,379

 
(20,509
)
 
1,720,870

 
For the year ended December 31, 2018
Statement of Operations
(in thousands, except per share information):
As previously reported
 
Adjustments
 
As adjusted
Net income
137,289

 
(1,816
)
 
135,473

Basic income per Common Share
0.76

 
(0.01
)
 
0.75

Diluted income per Common Share
0.76

 
(0.01
)
 
0.75

Basic income per Common Partnership Unit
0.76

 
(0.01
)
 
0.75

Diluted income per Common Partnership Unit
0.76

 
(0.01
)
 
0.75

 
For the year ended December 31, 2017
Statement of Operations
(in thousands, except per share information):
As previously reported
 
Adjustments
 
As adjusted
Net income
121,859

 
(682
)
 
121,177

Basic income per Common Share
0.66

 
(0.01
)
 
0.65

Diluted income per Common Share
0.65

 
—

 
0.65

Basic income per Common Partnership Unit
0.66

 
(0.01
)
 
0.65

Diluted income per Common Partnership Unit
0.65

 
—

 
0.65




 
For the year ended December 31, 2016
Statement of Operations
(in thousands, except per share information):
As previously reported
 
Adjustments
 
As adjusted
Net income
40,501

 
(1,052
)
 
39,449

Basic income per Common Share
0.19

 
(0.01
)
 
0.18

Diluted income per Common Share
0.19

 
(0.01
)
 
0.18

Basic income per Common Partnership Unit
0.19

 
(0.01
)
 
0.18

Diluted income per Common Partnership Unit
0.19

 
(0.01
)
 
0.18

 
For the three months ended September 30, 2018
Statement of Operations
(in thousands, except per share information):
As previously reported
 
Adjustments
 
As adjusted
Net income
(43,262
)
 
(260
)
 
(43,522
)
Basic income per Common Share
(0.24
)
 
—

 
(0.24
)
Diluted income per Common Share
(0.24
)
 
—

 
(0.24
)
Basic income per Common Partnership Unit
(0.24
)
 
—

 
(0.24
)
Diluted income per Common Partnership Unit
(0.24
)
 
—

 
(0.24
)
 
For the nine months ended September 30, 2018
Statement of Operations
(in thousands, except per share information):
As previously reported
 
Adjustments
 
As adjusted
Net income
14,579

 
(780
)
 
13,799

Basic income per Common Share
0.08

 
(0.01
)
 
0.07

Diluted income per Common Share
0.08

 
(0.01
)
 
0.07

Basic income per Common Partnership Unit
0.08

 
(0.01
)
 
0.07

Diluted income per Common Partnership Unit
0.08

 
(0.01
)
 
0.07

There were no impacts to cash flows from operating activities in any period.