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Brandywine adjusts FY'17 earnings guidance, issues initial FY'18 outlook

Brandywine Realty Trust adjusted its 2017 funds-from-operations guidance to $1.32 to $1.34 per share from an earlier estimate of $1.34 to $1.38 per share and issued an initial FFO-per-share projection of $1.36 to $1.46 for 2018.

The S&P Capital IQ consensus FFO-per-share estimates for 2017 and 2018 are $1.36 and $1.49, respectively.

In October, a real estate joint venture in which Brandywine owns a 50% stake disposed of five office portfolios spanning about 1,164,500 square feet in Austin, Texas, for $333.3 million. The properties were encumbered with a $151.4 million first-mortgage loan and were 86% occupied and 95% leased as of Sept. 30. The company will use the roughly $86.4 million in net cash proceeds to trim the outstanding balance on its unsecured line of credit.

Also in October, Brandywine bought a leasehold interest in the One Drexel Plaza office building, which comprises about 283,000 rentable square feet in Philadelphia, for $35.0 million. The transaction, which reflects an investment in the company's Schuylkill Yards development, was funded with borrowings under the company's unsecured line of credit.

The company said that on July 28, it purchased a 59,000-square-foot office property at 3000 Market St. in Philadelphia for $32.0 million. It funded the deal with 1031 exchange proceeds from its sale of Concord Airport Plaza on Feb. 2. The acquired property is also located in the Schuylkill Yards development.

The company signed deals in Pennsylvania to unload five buildings aggregating about 253,000 square feet in Newtown Square for $42.0 million and an office building containing about 150,000 rentable square feet in King of Prussia for $17.5 million. Both transactions are slated to close in the fourth quarter, with the net cash proceeds to be used for reducing the outstanding balance on the company's unsecured line of credit.

In October, Brandywine started the development of a 165,000-square-foot build-to-suit property at its Four Points project in Austin, which has a total estimated cost of $48.2 million and is fully pre-leased for 10 years. It expects to use available cash balances or its unsecured line of credit to fund the development, which is targeted for delivery in the first quarter of 2019.