Brandywine Realty Trust (BDN) recently announced that it has signed a new four-year unsecured revolving credit facility worth $600 million and unsecured term loan of $600 million.
The $600 million term loan includes a $150 million three-year loan, a $250 million four-year loan and a $200 million seven-year loan. The company’s existing $600 million unsecured revolving credit facility and existing $183 million term loan scheduled to mature on June 29, 2012 will be retired with any existing balances repaid at that time.
The new unsecured revolving credit facility and new term loans will be closed by February 15, 2012. Through this strategic initiative, the company expects to enhance its credit profile and strengthen its financial flexibility.
The company reported funds from operations (FFO) of $60.3 million or 41 cents per share in the third quarter of 2011 compared with $45.6 million or 32 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Brandywine Realty is one of the largest, publicly traded integrated real estate companies in the United States. Brandywine owns, develops, manages and has ownership interests in a primarily Class A, suburban and urban office portfolio comprising 307 properties spanning 35.1 million square feet.
Brandywine Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Mack- Cali Realty Corporation Co (CLI) also holds a Zacks #3 Rank.
