Despite this, the company met its 2005 forecast guideline in all areas. Net income for the year was $42.8 million, compared with $60.3 million for the previous year. Funds from operations ended Dec. 31, 2005 at $143.7 million, up from $133.9 million at the same time a year ago.
The REIT has approximately 693,000 sf under development at a cost of $166 million, and Sweeney said preleasing at those locations in Pennsylvania; Oakland, CA; Richmond, VA; Austin, TX; and Central New Jersey "is going well." The company plans to invest approximately $700 million in acquisitions this year to "solidify our submarkets in both legacy and new market areas," he said, referring to both the existing Brandywine portfolio and the one acquired from Prentiss.
Brandywine is also "test marketing for sale" properties in the Pennsylvania suburbs, Delaware, Southern New Jersey and Dallas, Sweeney said. Without disclosing specific properties, he estimated the pricing at $150 million with transactions taking place later in the second or third quarter.
While expressing "comfort" with properties in most areas, he referred to "storm clouds in two historically strong markets--Delaware and Southern New Jersey." In both markets several large leases are nearing expiration and not all tenants are expected to renew.
Regarding a potential JV partner for Cira Centre in Philadelphia, Sweeney said, "there's nothing to report." He acknowledged exploring prospects and added, "We're also looking at some other things in University City, which may play into that."
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