Net income dropped to $13.9 million for this year's first quarter, down $9.6million in comparison with $23.5 million for the same quarter of 2002. Thesharp decrease in both income and earnings per share this year is attributedto a net gain of just $600,000 on the disposition of discontinuedoperations, compared with a net gain of $8.4 million on disposition of discontinuedoperations during first quarter 2002.
Funds from operations dropped to $30.1 million in first quarter 2003, downfrom $32.4 million in the same quarter a year ago. "Our occupancy at the endof the (2003) quarter slightly exceeded our expectations," said Gerard H.Sweeney, president and CEO. "We executed very well against our first quarter2003 business plan in what continues to remain a challenging leasingenvironment.
"Capital costs and lease rates remain under pressure," he said, and alsonoted that the financial results, "especially on a same store basis, wereimpacted by heavy snow removal." The REIT's portfolio was 91.7% leased as ofMarch 31, 2003.
Brandywine anticipates a continuing challenging environment throughout thisyear and expects occupancy to decline slightly in comparison with 2002 and adecrease of between 1.5% and 3% in same-store net operating income.
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