Calling first quarter "an active one for the company," Gerard H. Sweeney, president and CEO, says the REIT completed the remaining steps in its "balance sheet strengthening program" by taking advantage of the current strong capital markets. It raised $120 million in sales of common stock and an additional $56 million of perpetual preferred shares "at pricing levels that are even more attractive when viewed by the standards of today's pricing levels," he notes.

Rental rate growth on new leases in the company's portfolio during first quarter was down 3.5% on a straight-line basis and down 11.1% on a cash basis. Rental rate growth on renewals during the quarter rose 1.6% on a straight-line basis and was up 4.5% on a cash basis. Retention for the quarter was 76.4%.

During the opening quarter of the year the REIT inked renewals for an aggregate 742,000 sf and signed new leases for an additional 121,000 sf. As of March 31, the Brandywine portfolio was 90% occupied and 90.9% leased.

"We continue to experience operational challenges that result in difficult earnings visibility," Sweeney says. He anticipates only a slight increase in average occupancy of between 1% and 1.5% this year, compared with last, and a parallel increase in same-store net operating income.