Brandywine Realty Trust : Second Quarter 2022 Investor Update

Our Business Plan Key Constructs

Grow net

asset value

Grow cash flow

Operational Excellence

• Stable platform supports growth strategy with lower forward rollover risk
• Steady & improving markets with top quality product
• Benefiting from flight to quality

Growth Strategy

• Active asset sales program
• Strong forward development pipeline

Balance Sheet Management

• Ongoing improvement to all coverage ratios
• Maximize liquidity
• Wholly‐owned debt portfolio 86% fixed rate

High Quality Mixed-Use Land Inventory

• Land bank that can deliver 11M SF potential mixed‐use FAR with very low basis
• Land inventory composition:

	Other
Life	14%	Office
Science

15%	43%
Residential
28%

Our Core Markets

Greater Philadelphia, PA (75% of NOI)

• #1 growth rate of highly educated population among 25 largest metros since 2008
• $5.5 Billion in total NIH Grant Funding over last 5 years ranking #5 in US cities
• Philadelphia region saw $8.1 Billion in venture capital deals during 2021, the 5th highest total in US
• Growing Life Sciences sector represents 800+ companies and 50,000 employees in the region
• 7th top Life Science cluster in the US
• 32,000 degrees conferred in 2021, over 50% in STEM and health fields

Austin, TX (19% of NOI)

• #1 Fastest Growing Metro (US Census Bureau)
• #1 Best Place to Start Business (Inc.)
• #2 Best Performing Job Market of top 50 Metros (2/2020‐5/2022) (US Bureau of Labor Statistics)
• #2 Hottest City for Commercial RE (Forbes)
• #4 City to Watch for 2022 (ULI Emerging Trends)
• Replaced all pandemic related job losses and added 88,000 more jobs
• Tesla has begun cyber truck and model 3 production; will ultimately employ 10,000 workers
• Samsung selected Taylor, TX for new $17B semiconductor plant; will increase employee base in Central Texas to 5,000
• Opportunity Austin reported that 2021 was another record year of corporate relocations and expansions including 27K new jobs (40% office jobs); 304 hot/active prospect companies looking to move to or expand in Austin, including 106 office projects

www.brandywinerealty.com

2929 ARCH STREET, PHILADELPHIA, PA 19104 | 610.325.5600

Austin's Second Downtown…

AUSTIN, TX

Project Overview

 Uptown ATX will be a mixed‐use, 66‐acre transit‐oriented community. The existing buildings total 913,000 SF of which IBM occupies 65%. Once redeveloped, the project will include office, multi‐family, hotels, retail and a new CapMetro light rail station.

 Uptown ATX sits at the population center of Greater Austin, and near the crossroads of three major highways. The area is

Block Aserved by multi‐modal transportation options including CapMetro light rail and bus lines.

 The project will offer over 11 acres of park space, and access to more than 23 miles of existing and planned jogging trails and bike routes.

 We have all required government and third‐ party approvals for campus‐wide redevelopment.

One Uptown Project Status (Block A)

• A mixed‐use development featuring a 14‐story office tower comprised of one level of below‐grade parking, lobby and retail level, 6 above‐ grade parking garage levels, and 8 office levels totaling 347,838 rentable square feet.
• The Residential is made up of 259 units within a 13‐story concrete tower and 82 units in a 5‐story structure wrapping the parking structure.
• A showcase amenity deck serving both the office and multi‐family components of the project includes a pool, fitness center, outdoor TV's and gathering spaces.

Project Schedule		Financial Highlights
	Joint Venture Formation:	Q4 2021		Total Development Costs ‐ Office:	$188mm
	Construction Commencement:	Q4 2021		Total Development Cost ‐ Residential:	$140mm
	Target Completion ‐ Office:	Q3 2023		Construction Loans:	$207mm
	Target Completion ‐ Residential:	Q3 2024		Project Stabilized Cash Yield ‐ Office:	7.2%
 Project Stabilization ‐ Office:	Q3 2024		Project Stabilized Cash Yield ‐ Residential:	5.4%
 Project Stabilization ‐ Residential:	Q2 2025		Joint Venture Structure: Preferred equity with Canyon Real Estate

Based on our current development plan, we can develop 2.0 million square feet and 1,250 multi‐family units with the existing buildings remaining in place.

Accelerating Life Science…

PHILADELPHIA, PA

Overview

 We are the master developer of Schuylkill Yards, a multi‐phase development of residential, life science, research and academic facilities, office, retail and hospitality space.

 Adjacent to the nation's 3rd busiest rail station, the project will be one of the most transit‐rich developments in the country.

 Entire project is located within an opportunity zone which provides federal tax incentives. Certain phases of project can also receive state and local tax incentives.

 Costs of future developments will be funded through a combination of existing liquidity, equity and debt capital raised through one or more joint venture formations.

		PLANNED & IN‐	700K SF	250K SF
		PROCESS LAB	OF OFFICE	OF HOTEL SPACE	Project Status
		DEVELOPMENTS						 We have acquired the leasehold interests in three
			1.3M SF	6.5 ACRES
		BRANDYWINE		parcels of land with the ability to develop three
		OF GREENSPACE
		COMPLETED	OF RESIDENTIAL	mixed‐use buildings, aggregating approximately
		PROJECTS	65K SF	2.8M SF		2.0 million square feet for $36 per FAR, or $73M.
		14 ACRES		 We have entered into partnership with global
		OF LIFE SCIENCE &
		OF RETAIL SPACE
			INNOVATION SPACE	institutional investor to develop the first two
								parcels 3025 JFK (West Tower) and 3151 Market.
								These projects have commenced construction and
OUR UNIVERSITY CITY LIFE SCIENCE OPPORTUNITIES	will deliver the following:
	 Our 50,000 square foot life			 University City is located in the 5th	o 200,000 SF life science/office space
			o 441,000 SF dedicated life science
	science incubator, B.Labs,			largest cluster of laboratories in the
			o	326 apartment units
	successfully opened in January			country with over $5.5 Billion in NIH
	2022 and is currently 98%			funding secured over the last 5 years.	o	Ground floor retail & below grade parking
	leased. B.Labs is located directly
	adjacent to Schuylkill Yards in
	University City.
									CUMULATIVE %
					BUILDING	LOCATION	STATUS			LAB (SF)	of PORTFOLIO
					Bulletin Building	University City	100% Occupied			183,208	1.3%
					3000 Market	University City	100% Occupied			90,556	2.0%
					Cira Centre	University City	Partial office conversion to incubator, 98% occupied	50,000	2.4%
					250 King of Prussia Road	Radnor, PA	CIP - Completion 2Q22		168,294	3.6%
	•	Location: Cira Centre			3025 JFK (SYW)	University City	CIP - Completion 3Q23		100,000	4.3%(A)
	• Size (SF): 50,000 SF			3151 Market	University City	CIP - Completion 2Q24		417,000	7.3%(A)
	•	Capacity: 240 Benches
	• Commence Operations: January 1, 2022		Incremental SY Capacity	University City	Life Science Planned Development	2,152,722	20.5%(A)
	•	Leased: 98%
							TOTAL	3,161,780	20.5%(A)
	•	Manager: PA Biotech
					(A) Expanded portfolio

Value Creation Through Development

3025 JFK | Philadelphia, PA

• Ground up JV development project consisting of 200K SF of life science/ office space and 326 residential units.
• $287M project cost at 7.0% cash yield.
• Projected terminal value of $365M at 5.5% cap rate.

405 Colorado | Austin, TX

• Ground up development of 206K SF office building with 520 space parking garage.
• $122M project cost at 8.0% cash yield.
• Projected terminal value of $177M at 5.5% cap rate.

250 King of Prussia | Radnor, PA

• Recycled office/land holding and converted into 168K SF life science.
• $83M project cost at 8.0% cash yield.
• Projected terminal value of $110M at 6.0% cap rate.

Current

Forward

Contribution

Preferred

Equity Structure

to

Venture

For Our

Development

Projects

Annual NOI $

58

44

31

15

2023

2024

2025

2026

Year

	BDN		BDN
	19%		19%
Financing	Common	Financing	Preferred
Investor
Investor
62%	62%	19%
19%

Equity Ownership	50/50 Common	50/50 Preferred
Stabilized Cash Yield	7.0%	7.0%
Hold Period	7 Years	7 Years
Project IRR	20.0%	20.0%
Upside Equity Participation (BDN)	60%	88 to 90%
BDN IRR	20.9%	25.1%
	Preferred Equity Structure = 420 Basis Improvement to BDN Returns

Environmental, Social, & Governance (ESG) Highlights

As a pioneer of sustainable commercial real estate, Brandywine remains committed to the continual improvement of our operations, portfolio performance, and community impact.

LEADERSHIP AND RECOGNITION GREEN BUILDING CERTIFICATIONS

Committed to the CEO Action for

Diversity and Inclusion initiative

Extended our industry‐leading ISS

Governance Quality Score of 1 in

2022, representing the highest possible score and lowest shareholder risk

Ranked as "Low Risk" by Sustainalytics ESG Risk Ratings

Continued to maintain an A Rating from MSCI ESG Research LLC

Achieved 2022 Green Lease Leaders Platinum for collaborating with tenants to equitably align financial and environmental benefits

Recognized as the most committed building owner in the Philadelphia 2030 District partnership to achieve substantial reductions in energy and water use by the year 2030

Named as one of Philadelphia's Business Journal's 2021 Best

Places to Work

SQ. FT. OF OUR PORTFOLIO IS
GREEN BUILDING CERTIFIED
footage totals include	6.9M
1M
for new development
SQ. FT.	SQ. FT.
operational assets,	5.7M
4.7M
buildings with	SQ. FT.
SQ. FT.

certifications are counted only once.
11.5M	4.8M
SQ. FT.	SQ. FT.

Square footage totals include certifications for new development and operational assets, and buildings with multiple certifications are counted only once.

ENVIRONMENTAL PROGRESS

ENERGY

‐32.0%	‐36.7%
Change in	Change in
Energy Intensity from	Energy Intensity Over
Prior Year	Baseline

WATER

‐4.9%	‐26.0%
Change in Water	Change in Water
Intensity from Prior	Intensity from Baseline
Year	Year

GREENHOUSE GAS EMISSIONS

‐15.3%	‐34.0%
Change in Scope 1 & 2 GHG	Change in Scope 1 & 2 GHG
Emissions Intensity from	Emissions Intensity from
Prior Year	Baseline Year

View our CSR Report at brandywinerealty.com/responsibility