You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Although, we believe estimates reflected in these statements are based on reasonable assumptions, we cannot give assurance that the anticipated results will be achieved.
Well, first and foremost, all of us at Brandywine sincerely hope that you and yours continue to be safe, healthy and engaged, and while we remain optimistic about the accelerating vaccine deployment and the path to recovery, the pandemic still continues to disrupt all of our lives and every business, and unfortunately duration of the recovery cycle still remains a bit unclear.
Our portfolio remains about 15% to 20% occupied, which is comparable to our occupancy levels as of our October call.
And as noted in the SIP, most of the jurisdictions where we have properties still have significant return to work restrictions in place.
Additional details on our COVID-19 approach are outlined on pages 1 to 5 of our Supplemental Package.
During our comments today, we'll briefly review fourth quarter results, discuss our '21 business plan and provide color on our recent transactions and developments, Tom will then provide a brief review of 2020, discuss our '21 guidance, and update you on our strong liquidity position.
After that, certainly, Tom, Dan, George and I are available for any questions.
We closed 2020 on a very strong note.
Many of our revised '20 business plan objectives were achieved despite the protracted nature of the recovery.
We exceeded our speculative revenue target by $400,000, executed lease volumes increased quarter-over-quarter, and our pipeline increased by 229,000 square feet.
For the fourth quarter, we posted strong rental rate mark-to-market of almost 19% on a GAAP basis, and 11% on a cash basis.
For the full year '20, our mark-to-market was a very strong 17.5% on a GAAP basis, and 9.3% on a cash basis.
In addition, we had 59,000 square feet of positive absorption during the quarter, which included 33,000 square feet of tenant expansions with no tenant contractions.
Our full year 2020 same-store number did come in below our revised business plan, primarily due to the JV sales activity that we'll discuss, several COVID-related occupancy delays, and parking revenues that were well below our original forecast due to the slower return to the workplace.
Our tenant cash collection efforts continue to be among the best in the quarter, in the sector rather, and we have collected over 98% of fourth quarter billings, and our January collection rate continues to track very well with 98.5% of office rents collected as of yesterday.
Our capital costs for '20 were better than our targeted range due to very good success in generating short-term lease extensions with minimal capital outlay.
Tenant retention came in at 52%, slightly above our full year forecast, and our core occupancy and lease targets were below our ranges simply due to pandemic-related delays and targeted move-ins, and lease executions and negotiations sliding into early '21.
We did post FFO of $0.36 per share, which was in line with most consensus estimates.
A general update on COVID-19 impact is first, consistent with all applicable state and local CDC guidelines, we do remain in a doors open, lights on condition in all of our buildings.
As we noted, the set most large employers have yet to return to the workplace for a variety of factors, primarily public policy mandates, employer liability concerns, mass transit, virtual schooling and safety concerns.
However, we're seeing more small and mid-sized companies beginning to return more employees to their various workspaces.
Portfolio stability remains top of mind, and our progress on several key factors can be found on pages 1 to 3 of the SIP.
We do continue to stay in touch with our tenants to understand their concerns and their transition plans.
A key priority of ours has been to work with those tenants whose spaces role in the next two years.
Those efforts have resulted in 79 active tenant renewal discussions, totaling about 750,000 square feet and to date have resulted in 62 tenants, aggregating 500,000 square feet actually executing leases.
These leases had an average term of 30 months with a roughly 4% cash mark-to-market and 4% capital ratio.
An important point to note is that this early renewal activity, when we exclude the large known roll-outs at 2340 Dulles and the retirement of 905 Broadmoor, we've reduced our remaining '21 rollover to just 4.2%.
So looking at '21.
We are providing 2021 earnings guidance, frankly not an easy call, given the overall economic and pandemic picture.
However, our early renewal efforts, expense control programs, near term visibility into our forward pipeline, and the recently executed transactions, we think have established a solid operating plan with a clear pathway to execution.
That plan is based on a gradual return to work environment beginning in the second quarter through the balance of the year.
So our approach was to be conservative, but as transparent as possible to frame at a defined operating plan with all key metrics quantified, and present the '21 earning guidance range as a platform to build from.
And with the '21 plan set, we do remain focused on revenue and earnings growth, whether that be through accelerated leasing, margin improving cost controls, we're working with institutional partners to seek investments in capital structures where we can create value.
The '21 plan is really headlined by two key operating metrics that we think demonstrate excellent growth potential.
Our cash mark-to-market range is between 8% and 10%, and our GAAP mark-to-market range is between 14% and 16%.
For 2021, we do expect all of our regions will post positive mark-to-market results on both the cash and GAAP basis.
We do have several larger blocks of space to fill, particularly at Barton Skyway in Austin, 1676 International in Tysons, and several others.
But looking forward, achieving our leasing objectives on those spaces can be significant revenue boosters, and our '21 plan only has about $1 million of revenue coming in from those larger spaces.
Our GAAP same-store NOI growth of 0 to 2% and our cash same-store of 3% to 5% is primarily driven by Austin up about 8%, Pennsylvania suburbs close to 5% increase, and Philadelphia around 2%.
Our Metro D.C. region will continue to be negative, while the 1676 International Drive continues through its reabsorption phase.
With that renovation now complete, our overall leasing activity has really accelerated, and our pipeline is up significantly to about 600,000 square feet this quarter versus around 370,000 square feet last quarter.
And also, we will be retiring 905 Broadmoor permanently as part of our Broadmoor master plan development.
Other key operating highlights.
Spec revenue will range between $18 million and $22 million.
We have $14.7 million achieved or 74% achieved at this point.
This is the first time we're providing a spec revenue range versus $1 target, but given the lack of real forward visibility on the acceleration of leasing, we felt that it was warranted.
Occupancy levels, we think, will be between 91% and 93% at year-end and with leasing percentages being between 92% and 94%.
Capital will run about 11% of revenues, which is below our 2020 target range and we are forecasting a debt-to-EBITDA being between 6.3 and 6.5 times, and Tom will certainly talk about that.
Our leasing pipeline has picked up.
It stands at 1.3 million square feet, including about 88,000 square feet in advanced stages of negotiations and as I mentioned before that pipeline is up about 230,000 square feet.
Interestingly too knowing that physical tours have yet to fully return for a variety of pandemic-related reasons, we have launched a virtual tour platform for all of our availabilities and to date, we're generating close to 300 tours per month with over 500,000 square feet being inspected.
So we think that is early harbinger of tenants beginning to really look at their office space requirements going forward.
From a liquidity standpoint, we're in great shape.
We anticipate having $562 million on our line of credit available year-end.
We have no unsecured bond maturities until 2023, and with the recent secured mortgage payoffs, we have a fully unencumbered wholly owned asset base.
The dividend remains extremely well covered with a 53% FFO and 68% CAD payout ratio.
Now, looking at our investment and development opportunities.
During the fourth quarter, we completed several investment transactions.
We did execute a joint venture with an institutional partner on 12 properties totaling 1.1 million square feet.
These properties are located in suburban Philadelphia and Rockville, Maryland.
The portfolio has added $193 million.
We retained a 20% ownership stake.
In addition to the $121 million first mortgage finance we put in place, we also elected to provide seller financing in the form of a $20 million preferred equity position that has a 9% current pay.
As a result of that, we did receive about $156 million of net cash proceeds and with all of our -- as with all of our ventures, we will generate an attractive fee stream by retaining property and asset management as well as leasing and construction management services.
On our previous calls, we had highlighted that we had about $250 million of remaining non-core assets in our wholly owned pool.
This portfolio had been our primary target and leaves us with very few assets that are not considered core holdings.
This partnership, similar to others we have done, did create a different capital structure that more than doubles our return on invested equity from a mid-single digit return to mid-teen return on our remaining invested capital and also avoids about a $20 million of direct capital investment by Brandywine.
It's interesting as well too, with this transaction, we now have over 80% of our revenue stream coming in from submarkets that are ranked A+ or A++ by Green Street's recent office Market Snapshot.
We had also made a preferred investment in 90% of lease to building portfolio, totaling 550,000 square feet in Austin, near the airport.
That preferred investment totaled $50 million, also has a 9% current pay, excellent cash coverage and a several year term, and this was similar to the type of transaction we did a number of years ago at Commerce Square here in Philadelphia.
This investment increases our revenue contribution from Austin toward our 25% goal and will enable us to take advantage of the market knowledge and position we have to create a structured well covered financial instrument.
Our partner will have a 45% preferred interest in the joint venture with Brandywine holding the remaining 55% equity interest.
The project will be built with 7% blended yield that will consist of 326 apartment units, a 100,000 square foot -- feet of life science and 100,000 square feet of innovative office along with underground parking and 9,000 square feet of street level retail.
We do have an active pipeline totaling over 300,000 square feet for the life science and office space component of this project and based on this level of interest, we do plan a construction start in March of '21.
We are currently sourcing construction loan financing and plan to have a loan in place for the next 90 days at a targeted 55% to 60% loan-to-cost, and given the front-loading of the equity commitment of about $115 million assuming a 60% loan-to-cost construction financing.
The first funding of the construction loan wouldn't occur until April of '22.
Our share of the equity will be about $63 million of which about $35 million is already invested.
And looking at our production assets, they all remain ready to go subject to pre-leasing.
As we've noted every quarter, each of these projects can be completed within four to six quarters and cost between $40 million to $70 million.
The pipeline on those production assets is around 450,000 square feet and we are continuing actively our marketing efforts along those lines to hopefully get some pre-leasing done there as the market recovers.
And looking at the two existing development projects, 405 Colorado is on track for a Q1 '21 completion.
We have a pipeline that has built since our last call that approaches 360,000 square feet, including 53,000 square feet in advanced discussions.
To be conservative, given the pace of the recovery in the market, we have extended the stabilization until Q1 '22.
We've increased our cost by approximately $6 million, primarily due to additional TI and leasing commissions, a bit longer absorption schedule, which has resulted in our targeted yield being reduced to 8%.
3000 Market construction is under way on this building, which will be fully occupied by Q4.
The building is fully leased for 12 years and will deliver a develop yield of 9.6%.
The commencement date did slide one quarter due to COVID-related construction delay, but we have increased our yield on the project by 110 basis points due to some design scope modifications and success on the buyout.
Couple other quick comments on Schuylkill Yards and Broadmoor.
We do continue our strong life science push at Schuylkill Yards.
The overall master plan is about 3 million square feet, it can be life science space, so we can really build on the work we've done at 3000 Market, The Bulletin Building, and now Schuylkill Yards West.
Plans for 3151, which is our 500,000 square foot life science dedicated building is well under way.
We do have a leasing pipeline of over 500,000 square feet for that project and the goal would be to start that later this year, assuming if pre-leasing market conditions permit.
We have started constructing to convert several floors within Cira Centre to life science use and that program is moving along per our plan.
In Broadmoor, we are advancing Blocks A and F, which is a total of 350,000 square feet of office and 870 apartments.
Block A had $164 million, 350,000 square foot office as part of that phase, along with 341 multi-family units at a cost of $116 million.
We are heavily engaged in joint venture partnership selection process.
That process is going very well with discussions well under way with several parties and we hope to be able to start the residential component of Block A by the third quarter of '21.
Tom will now provide an overview of our financial results.
Our fourth quarter net income totaled $18.9 million or $0.11 per diluted share and our FFO totaled $61.4 million or $0.36 per diluted share.
Some general observations regarding the fourth quarter results.
They were generally in line with a couple of exceptions.
Portfolio operating income fell about $75.5 million and exceeded our $74 million previous estimate, primarily due to lower operating costs benefited by lower tenant physical occupancy.
Termination and other income totaled $1.6 million or $3 million below our third quarter guidance.
The results were negatively impacted by several one-time transactions that we anticipated occurring in the fourth quarter, that are now anticipated to close in the first half of 2021.
FFO contribution from unconsolidated joint ventures totaled $6.3 million or $1.2 million below our third quarter guidance number primarily due to some co-working tenant write-offs, and that was slightly offset by the JV announced at the end of the year.
Our cash and GAAP same-store results came at 126[Phonetic] basis points lower, again due to lower parking revenue and some tenant leasing slides, all of which have commenced.
Our fourth quarter fixed charge and interest coverage ratios were 3.8 and 4.1 respectively.
Both metrics improved as compared to the third quarter.
Our fourth quarter annualized net debt-to-EBITDA decreased to 6.3 at the lower end of our 6.3 to 6.5 range.
The ratio is benefited from improved operating income and higher than expected year-end cash balances due to our recent fourth quarter transactions.
Two additional points on cash collections.
Our overall collection rate continues to be very strong above 38 -- 98%.
Additionally, our fourth deferred billings were less than $100,000.
So our core collection rate would essentially remain unchanged for those deferrals and our write-offs in the fourth quarter on the wholly owned portfolio were minimal.
For cash same-store is outlined on Page 1 of our Supplemental.
Looking at '21 guidance.
At the midpoint, net income will be $0.37 per diluted share and FFO will be $1.37 per diluted share and that includes roughly $0.04 of dilution related to the fourth quarter transactions we announced.
Our '21 range was built with the following general assumptions.
Portfolio operating income, our property level GAAP income will be roughly $285 million or a decrease of about $30 million compared to 2021 due to the following items.
2340 Dulles Corner and the retirement of 905 Broadmoor will generate about $10 million reduction from '20 to '21.
The Mid-Atlantic portfolio JV results in another $17 million decrease.
The full year effect of Commerce Square results in a $19 million decrease, those are partially offset by the full year effect of one Drexel park and Bellet Building being about $4 million, the 2021 completions of 405 Colorado and 3000 Market for about $3 million and about $3 million increase in our same-store portfolio GAAP NOI.
FFO contribution from our unconsolidated joint ventures will total $20 million to $25 million.
That increase is primarily due to the full year effect of Commerce Square as well as the transaction with the Mid-Atlantic portfolio.
G&A will be between $31 million and $32 million.
Investments, there is no new property acquisition or sales activity in our guidance.
Interest expense will decrease to approximately $67 million to $68 million, that's primarily due to the payoff of our two remaining mortgages as higher interest rates.
Capitalized interest will approximate $4 million as we complete the 405 Colorado building but also commence Schuylkill Yards West.
Investment income will increase to $6.5 million, primarily due to the new structured finance investment in -- at Austin, Texas.
Land sales and tax provision will net to about $2 million as we anticipate selling some non-core land parcels.
Termination and other income totaling $7.5 million, which is above the 2020 amount primarily due to one-time items, and again, were being moved from the fourth quarter of 2020 into the first half of '21.
Net management leasing and development fees will be $16 million, which is just above our 2020 actual due to the full year effect of Commerce Square and the JV for the Mid-Atlantic properties.
In addition, we anticipate that we will get some development fees from Schuylkill Yards West once we commence operation there with the development.
No anticipated ATM or share buyback activity.
Looking close -- more closely at the first quarter, we anticipate portfolio of property NOI totaling about $70 million and will be about -- sequentially about $5.5 million lower primarily due to 2340 Dulles as well as the Mid-Atlantic JV.
FFO contribution from our unconsolidated joint ventures will be $6.5 million.
G&A for the first quarter will increase from $6.3 million to $8 million.
Other sequential increases consistent with prior years and primarily timing of compensation expense recognition.
Interest expense will approximate $16 million, capitalized interest will be roughly $1.5 million, termination and other income, we continue to anticipate that to be $4 million with some of those transactions moving to '21.
Net management fee and development fee income will be $4.5 million with investment income being $1.6 million.
We expect some land gains potentially in the first quarter of about $0.5 million.
Our capital plan is very straightforward and totals to $350 million.
Our 2020 CAD ratio is between 75% and 81%, the main contributors to the lower coverage ratio is going to be the property level NOI reductions, as well as anticipated lease up in upcoming -- with the upcoming rollovers.
Using that as a guide, our uses in 2021 will be $145 million of development and redevelopment.
That does include the additional cash that is going to be necessary to complete our equity contribution into Schuylkill Yards West, $130 million of common dividends, $35 million of revenue maintain and $40 million of revenue creating capex.
The primary sources will be $185 million of cash flow after interest payments, $99 million use of the line, $46 million of using the cash on hand and roughly $20 million in proceeds from land in other sales.
Based on the capital plan outlined, our line of credit balance will be 5 -- roughly $500 million.
We have projected that our net debt-to-EBITDA range of 6.3 to 6.5 with the main variable being timing and scope of our development activities.
In addition, our net debt-to-GAV will approximate 14%.
In addition, we anticipate our fixed charge ratio and -- to be 3.7 and our interest coverage ratio to be 3.9.
So a couple of key takeaways.
Our portfolio and operations are really in solid shape.
We have excellent visibility into our tenant base, all signs at this point is evidenced by the numbers we've presented, our markets seem to be holding up fairly well.
Our leasing pipeline continues to increase as tenants think about their workplace return.
Look, safety and health, both in design and execution, are really and rapidly becoming tenants' top priorities and we do believe that new development and/or trophy-class stock as well as its extensive capital maintenance programs we had in place over the years will really benefit from that trend.
The private equity and debt markets are extremely competitive and strong operating platforms like Brandywine are gaining, I think, significant traction for project-level investments as certainly is evidenced by our recent activity.
I think our recent investment activity further improved our liquidity and created additional frameworks for growth for our shareholders.
And our partnership with Schuylkill Yards West I think really reinforces the increasing attractiveness of the emerging life science sector in Philadelphia and I really think, does create an excellent catalyst to accelerate the overall pace of the Schuylkill Yards development.
So we'll end where we started, which is that we wish you were all doing well and your families are safe.
We do ask in the interest of time you limit yourself to one question and a follow-up.

user
brandywine realty trust - qtrly net income allocated to common shareholders; $18.9 million, or $0.11 per diluted share.
brandywine realty trust - qtrly funds from operations (ffo) of $61.4 million, or $0.36 per diluted share.

assistant