The REIT's portfolio was 90.7% occupied and 91.5% leased at year-end 2003, and its year-to-date tenant retention rate was 80.2%, which "exceeded our aggressive goals," says Gerard H. Sweeney, president and CEO. "Clearly, the leasing market continues to remain challenging. We were able to surpass our same-store net operating income forecasts and we remain focused on controlling our capital costs and capturing more than our share of transactions in this highly competitive environment. We continue to be cautious in our outlook for 2004," he adds.

Sweeney cited Brandywine's joint venture with Australia-based Macquarie Office Trust and "success in raising attractively priced equity capital" as moves that "accelerated our balance sheet strengthening program." During the fourth quarter, the REIT contributed two office properties containing 663,000 sf and valued at $112.8 million, into a real estate venture with Macquarie while retaining a 20% interest. In addition, Brandywine sold six office properties aggregating 302,000 sf for $29.7 million and 21 acres of land for $3 million during the same quarter.

Also during fourth quarter it gained net proceeds of $64.1 million from a public offering of common stock and $48.1 million from the sale of preferred shares. It also significantly reduced dividend payments by redeeming outstanding preferred shares from previous offerings.