**UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549**

     **FORM 10-Q**

(Mark One)

           ****Quarterly Report Pursuant to Section 13 or 15(d) of the Securities               Exchange Act of 1934

               For the quarterly period ended September 30, 2005

                                 or

           Transition Report Pursuant to Section 13 or 15(d) of the Securities               Exchange Act of 1934 

               For the transition period from ____________ to ___________

Commission file number      000-24407

**Brandywine Operating Partnership, L.P.**(Exact name of registrant as specified in its charter)

| Delaware                                                    | 23-2862640                           |
|-------------------------------------------------------------|--------------------------------------|
|                                                             |                                      |
| State or other jurisdiction ofincorporation or organization | (I.R.S. Employer Identification No.) |

|                                              |             |
|---------------------------------------------------|------------------|
| 401 Plymouth Road, Plymouth Meeting, Pennsylvania | 19462            |
|                                                   |                  |
| (Address of principal executive offices)     |  (Zip Code) |

|                               |   |
|------------------------------------|--------|
| (610) 325-5600                     |
|                                    |
| Registrant’s telephone number |

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorterperiod that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of   the Exchange Act). Yes  No 

 

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.**

**TABLE OF CONTENTS**

PART I – FINANCIAL INFORMATION

|    |   |   |                                                                                                                          |   |   | Page   |   |
|---------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|         |        |        |                                                                                                                               |        |        |        |        |
| Item 1. |   |   | Financial Statements (unaudited)                                                                                              |   |   |   |   |
|    |   |   |                                                                                                                          |   |   |   |   |
|    |   |   | Consolidated Balance Sheets as of September 30, 2005 and December 31, 2004                                                    |   |   | 3      |   |
|    |   |   |                                                                                                                          |   |   |   |   |
|    |   |   | Consolidated Statements of Operations for the three- and nine-month periods ended September 30, 2005 and 2004                 |   |   | 4      |   |
|    |   |   |                                                                                                                          |   |   |   |   |
|    |   |   | Consolidated Statements of Other Comprehensive Income for the three- and nine-month periods ended September 30, 2005 and 2004 |   |   | 5      |   |
|    |   |   |                                                                                                                          |   |   |   |   |
|    |   |   | Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2005 and 2004                            |   |   | 6      |   |
|    |   |   |                                                                                                                          |   |   |   |   |
|    |   |   | Notes to Unaudited  Consolidated Financial Statements                                                                         |   |   | 7      |   |
|    |   |   |                                                                                                                          |   |   |   |   |
| Item 2. |   |   | Management’s    Discussion and Analysis of Financial Condition and Results of Operations                                |   |   | 32     |   |
|    |   |   |                                                                                                                          |   |   |   |   |
| Item 3. |   |   | Quantitative and Qualitative Disclosures about Market Risk                                                                    |   |   | 46     |   |
|    |   |   |                                                                                                                          |   |   |   |   |
| Item 4. |   |   | Controls and Procedures                                                                                                       |   |   | 46     |   |

PART II – OTHER INFORMATION

| Item 1. |   |   | Legal Proceedings                                           |   |   | 46     |   |
|---------|--------|--------|-------------------------------------------------------------|--------|--------|--------|--------|
|    |   |   |                                                        |   |   |   |   |
| Item 2. |   |   | Unregistered Sales of Equity Securities and Use of Proceeds |   |   | 46     |   |
|    |   |   |                                                        |   |   |   |   |
| Item 3. |   |   | Defaults Upon Senior Securities                             |   |   | 46     |   |
|    |   |   |                                                        |   |   |   |   |
| Item 4. |   |   | Submission of Matters to a Vote of Security Holders         |   |   | 46     |   |
|    |   |   |                                                        |   |   |   |   |
| Item 5. |   |   | Other Information                                           |   |   | 46     |   |
|    |   |   |                                                        |   |   |   |   |
| Item 6. |   |   | Exhibits                                                    |   |   | 47     |   |
|    |   |   |                                                        |   |   |   |   |
|    |   |   | Signatures                                                  |   |   | 48     |   |

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**PART I – FINANCIAL INFORMATION**

**Item 1. – Financial Statements**

|  |   |   | **BRANDYWINE OPERATING PARTNERSHIP, L.P.**                                         |   |
|--|--------|--------|------------------------------------------------------------------------------------|--------|
|  |   |   | **CONSOLIDATED BALANCE SHEETS**                                                    |   |
|  |   |   | **(unaudited, in thousands, except unit information)**                             |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |   |  |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |  |  |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | **September 30,** |   |   | **December 31,** |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | **2005** |   |   | **2004** |   |
|  |   |   |                                                                               |   |   |  |   |   |  |  |  |   |  |  |   |
|  |   |   | **ASSETS**                                                                         |   |   |  |   |   |  |   |  |   |   |  |   |
|  |   |   | Real estate investments:                                                           |   |   |  |   |  |   |   |  |   |
|  |   |   |                                                                                    |   |   | Operating properties |   |   |  | $ | 2,568,070 |   | $ | 2,483,134 |   |
|  |   |   |                                                                                    |   |   | Accumulated depreciation |   |   |  |   | (373,127 | ) |   | (325,802 | ) |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |   |  |  |   |  |  |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   | Operating real estate investments, net |   | 2,194,943 |   |   | 2,157,332 |   |
|  |   |   |                                                                                    |   |   | Construction-in-progress |   |   |  |   | 240,749 |   |   | 145,016 |   |
|  |   |   |                                                                                    |   |   | Land held for development |   |   |  |   | 86,086 |   |   | 61,517 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |   |  |  |   |  |  |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   | Total real estate investments, net |   | 2,521,778 |   |   | 2,363,865 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |  |  |   |  |  |   |
|  |   |   | Cash and cash equivalents                                                          |   |   |  |   | 23,340 |   |   | 15,346 |   |
|  |   |   | Escrowed cash                                                                      |   |   |  |   |   |  |   | 16,174 |   |   | 17,980 |   |
|  |   |   | Accounts receivable, net                                                           |   |   |  |   | 7,955 |   |   | 11,999 |   |
|  |   |   | Accrued rent receivable, net                                                       |   |   |  |   | 42,977 |   |   | 32,641 |   |
|  |   |   | Marketable securities                                                              |   |   |  |   | — |   |   | 423 |   |
|  |   |   | Investment in real estate ventures                                                 |   | 13,335 |   |   | 12,754 |   |
|  |   |   | Deferred costs, net                                                                |   |   |  |   |   |  |   | 34,624 |   |   | 34,449 |   |
|  |   |   | Intangible assets, net                                                             |   |   |  |   | 81,275 |   |   | 101,056 |   |
|  |   |   | Other assets                                                                       |   |   |  |   |   |  |   | 52,457 |   |   | 43,471 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |  |  |   |  |  |   |
|  |   |   |                                                                                    |   |   | Total assets |   |   |  |   |   |  | $ | 2,793,915 |   | $ | 2,633,984 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |  |  |   |  |  |   |
|  |   |   | **LIABILITIES AND PARTNERS’ EQUITY**                                          |   |  |   |   |  |   |
|  |   |   | Mortgage notes payable                                                             |   |   |  | $ | 504,669 |   | $ | 518,234 |   |
|  |   |   | Unsecured notes                                                                    |   |   |  |   |   |  |   | 636,582 |   |   | 636,435 |   |
|  |   |   | Unsecured credit facility                                                          |   |   |  |   | 340,000 |   |   | 152,000 |   |
|  |   |   | Accounts payable and accrued expenses                                              |   | 60,294 |   |   | 49,243 |   |
|  |   |   | Distributions payable                                                              |   |   |  |   | 27,712 |   |   | 27,363 |   |
|  |   |   | Tenant security deposits and deferred rents                                        |   | 21,621 |   |   | 20,046 |   |
|  |   |   | Acquired below market leases, net of accumulated amortization of $5,691 and $2,341 |   | 36,013 |   |   | 39,271 |   |
|  |   |   | Other liabilities                                                                  |   |   |  |   |   |  |   | 3,579 |   |   | 1,342 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |  |  |   |  |  |   |
|  |   |   |                                                                                    |   |   | Total liabilities |   |   |  |   |   |  |   | 1,630,470 |   |   | 1,443,934 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |   |  |   |
|  |   |   | Commitments and contingencies  (Note 14)                                           |   | — |   |   | — |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |   |  |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |   |  |   |
|  |   |   | Redeemable limited partnership units at redemption value;                          |   |  |   |   |  |   |
|  |   |   |                                                                                    |   |   | 1,945,267 and 2,061,459 issued and outstanding |   | 60,478 |   |   | 60,586 |   |
|  |   |   | Partners’ equity                                                              |   |   |  |   |   |  |   |  |   |   |  |   |
|  |   |   |                                                                                    |   |   | 7.50% Series D Preferred Mirror Units; 2,000,000 issued and outstanding in 2005 and 2004 |   | 47,912 |   |   | 47,912 |   |
|  |   |   |                                                                                    |   |   | 7.375% Series E Preferred Mirror Units; 2,300,000 issued and outstanding in |   |   |   |   |   |   |
|  |   |   |                                                                                    |   |   |  |   |   | 2005 and 2004 |   | 55,538 |   |   | 55,538 |   |
|  |   |   |                                                                                    |   |   | General Partnership Capital, 56,179,075 and 55,292,752 units issued and outstanding in |   |  |   |   |  |   |
|  |   |   |                                                                                    |   |   |  |   |   | 2005 and 2004, respectively |   | 1,002,327 |   |   | 1,029,144 |   |
|  |   |   |                                                                                    |   |   | Accumulated other comprehensive loss |   | (2,810 | ) |   | (3,130 | ) |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |   |  |  |   |  |  |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   | Total partners’ equity |   | 1,163,445 |   |   | 1,190,050 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |  |  |   |  |  |   |
|  |   |   |                                                                                    |   |   | Total liabilities and partners’ equity | $ | 2,793,915 |   | $ | 2,633,984 |   |
|  |   |   |                                                                                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |  |  |   |  |  |   |

The accompanying notes are an integral part of these consolidated financial statements.

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| **BRANDYWINE          OPERATING PARTNERSHIP, L.P.**                          |   |
|------------------------------------------------------------------------------|--------|
| **CONSOLIDATED STATEMENTS OF          OPERATIONS**                           |   |
| **(unaudited, in thousands,          except unit and per unit information)** |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   | **For the three-month          periods      ended September 30,** |   |   | **For the nine-month          periods      ended September 30,** |   |
|                                                                         |   |   |   |   |   |   |  |   |  |   |
|                                                                         |   |   |   |   |   |   |   | **2005** |   |   | **2004** |   |   | **2005** |   |   | **2004** |   |
|                                                                         |   |   |   |   |   |   |   |   |  |   |  |   |  |   |
| **Revenue:**                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   | Rents | $ | 81,348 |   | $ | 66,528 |   | $ | 244,232 |   | $ | 194,524 |   |
|                                                                         |   |   | Tenant reimbursements |   | 11,803 |   |   | 9,612 |   |   | 34,922 |   |   | 25,663 |   |
|                                                                         |   |   | Other |   | 2,627 |   |   | 2,555 |   |   | 10,612 |   |   | 7,921 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                         |   |   |   |   |   | Total revenue |   | 95,778 |   |   | 78,695 |   |   | 289,766 |   |   | 228,108 |   |
|                                                                         |   |   |   |   |   |   |   |  |   |   |   |   |   |  |   |   |   |   |
| **Operating Expenses:**                                                      |   |  |   |   |   |   |   |  |   |   |   |   |
|                                                                         |   |   | Property operating        expenses |   | 27,078 |   |   | 21,890 |   |   | 84,652 |   |   | 64,094 |   |
|                                                                         |   |   | Real estate taxes |   | 9,866 |   |   | 7,648 |   |   | 29,121 |   |   | 21,375 |   |
|                                                                         |   |   | Depreciation and        amortization |   | 28,535 |   |   | 18,280 |   |   | 84,790 |   |   | 50,913 |   |
|                                                                         |   |   | Administrative expenses |   | 4,486 |   |   | 3,534 |   |   | 13,616 |   |   | 10,977 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                         |   |   |   |   |   | Total operating expenses |   | 69,965 |   |   | 51,352 |   |   | 212,179 |   |   | 147,359 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Operating income**                                                         |   | 25,813 |   |   | 27,343 |   |   | 77,587 |   |   | 80,749 |   |
| **Other Income          (Expense):**                                         |   |  |   |   |   |   |   |  |   |   |   |   |
|                                                                         |   |   | Interest income |   | 707 |   |   | 763 |   |   | 2,174 |   |   | 1,815 |   |
|                                                                         |   |   | Interest expense |   | (17,762 | ) |   | (11,474 | ) |   | (53,366 | ) |   | (35,526 | ) |
|                                                                         |   |   | Equity in income        of real estate ventures |   | 745 |   |   | 665 |   |   | 2,296 |   |   | 1,573 |   |
|                                                                         |   |   | Net gain on sales        of real estate |   | 4,640 |   |   | 1,753 |   |   | 4,640 |   |   | 2,901 |   |
|                                                                         |        |  |   |  |  |   |  |  |   |  |  |   |
| Income before minority        interest                                       |   | 14,143 |   |   | 19,050 |   |   | 33,331 |   |   | 51,512 |   |
| Minority interest        attributable to continuing operations               |   | (41 | ) |   | 346 |   |   | (213 | ) |   | 324 |   |
|                                                                         |        |  |   |  |  |   |  |  |   |  |  |   |
| Income from continuing        operations                                     |   | 14,102 |   |   | 19,396 |   |   | 33,118 |   |   | 51,836 |   |
| **Discontinued          operations:**                                        |   |  |   |   |   |   |   |  |   |   |   |   |
|                                                                         |   |   | Loss from discontinued        operations |   | (19 | ) |   | (27 | ) |   | (159 | ) |   | (241 | ) |
|                                                                         |   |   | Net gain on disposition        of discontinued operations |   | 2,196 |   |   | 2,486 |   |   | 2,196 |   |   | 2,735 |   |
|                                                                         |        |  |   |  |  |   |  |  |   |  |  |   |
| Income from discontinued        operations                                   |   | 2,177 |   |   | 2,459 |   |   | 2,037 |   |   | 2,494 |   |
|                                                                         |        |  |   |  |  |   |  |  |   |  |  |   |
| **Net income**                                                               |   | 16,279 |   |   | 21,855 |   |   | 35,155 |   |   | 54,330 |   |
| Income allocated        to Preferred Units                                   |   | (1,998 | ) |   | (2,677 | ) |   | (5,994 | ) |   | (7,372 | ) |
| Income allocated        to Redeemable Units                                  |   | — |   |   | — |   |   | — |   |   | (832 | ) |
| Preferred Unit redemption        benefit                                     |   | — |   |   | — |   |   | — |   |   | 4,500 |   |
|                                                                         |        |  |   |  |  |   |  |  |   |  |  |   |
| **Income allocated          to Common Partnership Unitholders**              | $      | 14,281 |   | $ | 19,178 |   | $ | 29,161 |   | $ | 50,626 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Basic earnings          per Common Partnership Unit:**                     |   |  |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   | Continuing operations | $ | 0.21 |   | $ | 0.34 |   | $ | 0.47 |   | $ | 1.02 |   |
|                                                                         |   |   |   |   |   | Discontinued operations |   | 0.04 |   |   | 0.05 |   |   | 0.04 |   |   | 0.05 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                         |   |   |   |   |   |   | $ | 0.25 |   | $ | 0.39 |   | $ | 0.50 |   | $ | 1.07 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Diluted earnings          per Common Partnership Unit:**                   |   |  |   |   |  |   |   |  |   |   |   |   |
|                                                                         |   |   |   |   |   | Continuing operations | $ | 0.21 |   | $ | 0.34 |   | $ | 0.47 |   | $ | 1.01 |   |
|                                                                         |   |   |   |   |   | Discontinued operations |   | 0.04 |   |   | 0.05 |   |   | 0.04 |   |   | 0.05 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                         |   |   |   |   |   |   | $ | 0.24 |   | $ | 0.39 |   | $ | 0.50 |   | $ | 1.06 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| **Dividends declared          per common unit**                              | $      | 0.44 |   | $ | 0.44 |   | $ | 1.32 |   | $ | 1.32 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Basic weighted          average units outstanding**                        |   | 58,040,651 |   |   | 48,681,057 |   |   | 57,761,348 |   |   | 47,303,034 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted weighted          average units outstanding**                      |   | 58,340,691 |   |   | 48,921,901 |   |   | 57,995,891 |   |   | 47,541,380 |   |
|                                                                         |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |

The accompanying notes are an integral part of these consolidated financial statements.

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| **BRANDYWINE OPERATING PARTNERSHIP, L.P.**                     |
|----------------------------------------------------------------|
| **CONSOLIDATED STATEMENTS OF OTHER      COMPREHENSIVE INCOME** |
| **(unaudited, in thousands)**                                  |

|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   |                            |     |                           |   |
|----------------------|--------|--------|-----------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|---------------------------------|----------|--------------------------------|--------|
|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   | **For the three-month periods** |     | **For the nine-month periods** |   |
|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   | **ended September 30,**         |     | **ended September 30,**        |   |
|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   |                                 |          |                                |        |  |   |  |  |  |  |  |   |
|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   |                            | **2005** |                           |   | **2004** |   |   | **2005** |   |   | **2004** |   |
|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   |                                 |          |                           |        |  |   |  |  |   |  |  |   |
| Net Income           | $      | 16,279 |                                    | $      | 21,855 |                                                                                                                                               | $      | 35,155 |   | $                               | 54,330   |                           |
|                 |   |   |                                    |   |   |                                                                                                                                               |   |   |   |                            |          |                           |   |  |   |   |  |   |   |   |   |
|                 |   |   | Other comprehensive income:             |   |        |                                                                                                                                               |   |        |   |                            |          |                           |   |   |   |
|                 |   |   |                                    |   |   | Unrealized gain on derivative financial     instruments                                                                   |   | — |   |                            | —   |                           |   | — |   |   | 305 |   |
|                 |   |   |                                    |   |   | Reclassification of    realized losses on     derivative financial instruments     to operations |   | 113    |   |                            | —   |                           |   | 340 |   |   | 2,723 |   |
|                 |   |   |                                    |   |   | Unrealized gain (loss) on available-for-sale     securities                                                               |   | — |   |                            | 227      |                           |   | 237 |   |   | (658 | ) |
|                 |   |   |                                    |   |   | Reclassification of    realized gains on     available for sale securities     to operations     |   | (257   | )      |                            | —   |                           |   | (257 | ) |   | (154 | ) |
|                 |   |   |                                    |   |   |                                                                                                                                               |        |        |   |                                 |          |                           |        |  |   |  |  |   |
|                 |   |   | Total other comprehensive income (loss) |   | (144   | )                                                                                                                                                  |   | 227    |   |                            | 320      |                           |   | 2,216 |   |
|                 |        |        |                                    |        |        |                                                                                                                                               |        |        |   |                                 |          |                           |
| Comprehensive income | $      | 16,135 |                                    | $      | 22,082 |                                                                                                                                               | $      | 35,475 |   | $                               | 56,546   |                           |
|                 |        |        |                                    |        |        |                                                                                                                                               |        |        |   |                                 |          |                           |

The accompanying notes are an integral part of these consolidated financial statements.

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| **BRANDYWINE OPERATING PARTNERSHIP, L.P.**                                              |   |
|-----------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED STATEMENTS OF CASH FLOWS**                                               |   |
| **(unaudited, in thousands)**                                                           |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **Nine-month periods** |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **ended September 30,** |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **2005** |   |   | **2004** |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |
| **Cash flows from operating activities:**                                               |   |  |   |   |   |   |
|                                                                                    |   |   | Net income | $ | 35,155 |   | $ | 54,330 |   |
|                                                                                    |   |   |   |   |   | Adjustments to reconcile net income to net cash from |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   | operating activities: |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   | Depreciation |   | 63,588 |   |   | 41,948 |   |
|                                                                                    |   |   |   |   |   |   |   |   | Amortization: |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Deferred financing costs |   | 1,939 |   |   | 1,559 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Deferred leasing costs |   | 6,425 |   |   | 7,614 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Acquired above (below) market leases |   | (1,050 | ) |   | (120 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Assumed lease intangibles |   | 14,854 |   |   | 1,556 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Deferred compensation costs |   | 1,618 |   |   | 1,647 |   |
|                                                                                    |   |   |   |   |   |   |   |   | Straight-line rent |   | (10,852 | ) |   | (3,880 | ) |
|                                                                                    |   |   |   |   |   |   |   |   | Provision for doubtful accounts |   | 600 |   |   | 467 |   |
|                                                                                    |   |   |   |   |   |   |   |   | Real estate venture income in excess of distributions |   | (697 | ) |   | — |   |
|                                                                                    |   |   |   |   |   |   |   |   | Net gain on sale of interests in real estate |   | (6,820 | ) |   | (5,636 | ) |
|                                                                                    |   |   |   |   |   |   |   |   | Minority interest |   | 213 |   |   | (324 | ) |
|                                                                                    |   |   |   |   |   |   |   |   | Changes in assets and liabilities: |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Accounts receivable |   | 4,469 |   |   | (2,417 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Other assets |   | (12,837 | ) |   | 6,156 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Accounts payable and accrued expenses |   | 5,861 |   |   | (4,383 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Tenant security deposits and deferred rents |   | 628 |   |   | 713 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   | Other liabilities |   | 672 |   |   | 1,480 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Net cash from operating activities |   | 103,766 |   |   | 100,710 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cash flows from investing activities:**                                               |   |  |   |   |   |   |
|                                                                                    |   |   | Acquisition of properties |   | (92,674 | ) |   | (569,454 | ) |
|                                                                                    |   |   | Sales of properties, net |   | 29,428 |   |   | 20,710 |   |
|                                                                                    |   |   | Capital expenditures |   | (136,801 | ) |   | (79,191 | ) |
|                                                                                    |   |   | Investment in unconsolidated Real Estate Ventures |   | (258 | ) |   | (241 | ) |
|                                                                                    |   |   | Escrowed cash |   | 1,806 |   |   | (641 | ) |
|                                                                                    |   |   | Investment in marketable securities |   | 404 |   |   | — |   |
|                                                                                    |   |   | Cash distributions from unconsolidated Real Estate Ventures |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   | in excess of equity in income |   | 390 |   |   | 255 |   |
|                                                                                    |   |   | Increase in cash due to consolidation of variable interest |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   | entities |   | — |   |   | 426 |   |
|                                                                                    |   |   | Leasing costs |   | (8,445 | ) |   | (6,580 | ) |
|                                                                                    |   |   |   |  |  |   |  |  |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Net cash from investing activities |   | (206,150 | ) |   | (634,716 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |   |   |   |   |
| **Cash flows from financing activities:**                                               |   |  |   |   |   |   |
|                                                                                    |   |   | Proceeds from Credit Facility borrowings |   | 250,000 |   |   | 540,000 |   |
|                                                                                    |   |   | Repayments of Credit Facility borrowings |   | (62,000 | ) |   | (523,000 | ) |
|                                                                                    |   |   | Repayments of mortgage notes payable |   | (13,565 | ) |   | (45,824 | ) |
|                                                                                    |   |   | Proceeds from term loan borrowings |   | — |   |   | 433,000 |   |
|                                                                                    |   |   | Repaymemts of term loan borrowing |   | — |   |   | (100,000 | ) |
|                                                                                    |   |   | Repayments on employee stock loans |   | 50 |   |   | 1,012 |   |
|                                                                                    |   |   | Debt financing costs |   | (234 | ) |   | (3,788 | ) |
|                                                                                    |   |   | Exercise of stock options |   | 19,283 |   |   | 4,868 |   |
|                                                                                    |   |   | Proceeds from common partnership unit issuance, net |   | — |   |   | 392,337 |   |
|                                                                                    |   |   | Minority partner contributions |   | — |   |   | 19 |   |
|                                                                                    |   |   | Repurchases of preferred and common partnership unit holders |   | (240 | ) |   | (95,436 | ) |
|                                                                                    |   |   | Distributions paid to preferred and common partnership unit holders |   | (79,752 | ) |   | (63,786 | ) |
|                                                                                    |   |   | Distributions to minority interest holders |   | (3,164 | ) |   | (3,967 | ) |
|                                                                                    |   |   | Distributions to outside joint venture partners of consolidated |   |  |   |   |   |   |
|                                                                                    |   |   |   |   |   | variable interest entities |   | — |   |   | (118 | ) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Net cash from financing activities |   | 110,378 |   |   | 535,317 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |
| Increase in cash and cash equivalents                                                   |   | 7,994 |   |   | 1,311 |   |
| Cash and cash equivalents at beginning of period                                        |   | 15,346 |   |   | 8,552 |   |
|                                                                                    |        |  |   |  |  |   |
| Cash and cash equivalents at end of period                                              | $      | 23,340 |   | $ | 9,863 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |
| Supplemental disclosure:                                                                |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   | Cash paid for interest, net of capitalized interest | $ | 27,374 |   | $ | 27,911 |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| 1. | THE PARTNERSHIP |
|----|-----------------|

Brandywine Operating Partnership, L.P. (the “Partnership”) is the entity through which Brandywine Realty Trust, a Maryland real estate investment trust (the “Company”), a self-administered and self-managed real estate investment trust, conducts its business and owns its assets.  The Partnership’s activities include acquiring, developing, redeveloping, leasing and managing office and industrial properties.   The Company’s common shares of beneficial interest are publicly traded on the New York Stock Exchange under the ticker symbol “BDN”.

The Company’s ownership interests in the Partnership consist of both general partner and limited partner units (“Units” or “Common Partnership Units”).  The Partnership issued these Units to the Company in exchange for contributions to the Partnership of the net proceeds from Brandywine Realty Trust’s issuance of its shares of beneficial interest or in connection with awards of shares of beneficial interest by Brandywine Realty Trust to employees and trustees.  The number of Units owned by Brandywine Realty Trust, and the entitlements of these Units to receive distributions and payments in liquidation, mirror the outstanding shares of beneficial interest of Brandywine Realty Trust.  As of September 30, 2005,Brandywine Realty Trust owned 96.6% of the Partnership’s outstanding Units, excluding any preferred mirror Units issued to the Company in exchange for the Company’s contribution of the net proceeds from its issuances of preferred shares of beneficial interest.  The remaining 3.4% of these Units is owned by limited partners.  The Partnership issued these Units to persons that contributed assets to the Partnership.  The Partnership is obligated to redeem each of these Units, at the request of the holder, for cash or one common share of the Company, at the option of the Company.  Pursuant to its Partnership Agreement, the Partnership reimburses the Company for all expenses incurred in its operations.  The Partnership owns a 95% interest in Brandywine Realty Services Corporation, aPennsylvania corporation (“BRSCO”).  The remaining 5% of BRSCO is owned by a partnership comprised of a current executive and former executive of the Company, each of whom is a member of the Company’s Board of Trustees.  The Partnership owns a 100% interest in a taxable REIT subsidiary, BTRS, Inc., a Pennsylvania corporation (“BTRS”) (collectively, BRSCO and BTRS are known as the “Management Companies”).    As of September 30, 2005, the Partnership and the Management Companies were performing management and leasing services for 41 properties containing an aggregate of approximately 3.6 million net rentable square feet (including four of the Company’s Real Estate Ventures).

As of September 30, 2005, the Partnership owned 227 office properties (excluding two office properties that are held by two consolidated real estate ventures), 23 industrial facilities and one mixed-use property (collectively, the “Properties”) that contained an aggregate of approximately 19.6 million net rentable square feet.  The Properties are located in the office and industrial markets in and surrounding Philadelphia, Pennsylvania, New Jersey and Richmond, Virginia.  

| 2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

Basis of Presentation

The consolidated financial statements have been prepared by the Partnership without audit except as to the balance sheet as of December 31, 2004, which has been derived from audited data, pursuant to the rules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations, although the Partnership believes that the included disclosures are adequate to make the information presented not misleading.  In the opinion of management, all adjustments (consisting solely of normal recurring matters)for a fair statement of the financial position of the Partnership as of September 30, 2005, the results of its operations for the three- and nine-month periods ended September 30, 2005 and 2004 and its cash flows for the nine-month periods ended September 30, 2005 and 2004 have been included.  The results of operations for such interim periods are not necessarily indicative of the results for a full year.  These consolidated financial statements should be read in conjunction with the Partnership’s consolidated financial statements and footnotes included in the Partnership’s Annual Report on Form 10-K.  Certain prior period amounts have been reclassified to conform to the current period presentation.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

Principles of Consolidation

The accompanying consolidated financial statements include all accounts of the Partnership and its majority-owned and/or controlled subsidiaries.  All intercompany accounts and transactions have been eliminated in consolidation.

When the Partnership obtains an economic interest in an entity, the Partnership evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”), and if the Partnership is deemed to be the primary beneficiary, in accordance with FASB Interpretation No. 46R, “Consolidation of Variable Interest Entities” (“FIN 46R”).  The Partnership consolidates (i) entities that are VIEs and of which the Partnership is deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Partnership controls.  Entities that the Partnership accounts for under the equity method (i.e. at cost, increased or decreased by the Partnership’s share of earnings or losses, lessdistributions) include (i) entities that are VIEs and of which the Partnership is not deemed to be the primary beneficiary and (ii) entities that are non-VIEs which the Partnership does not control, but over which the Company has the ability to exercise significant influence.* *  The Partnership will reconsider its determination of whether an entity is a VIE and who the primary beneficiary is if certain events occur that are likely to cause a change in the original determinations.  

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  Management makes significant estimates regarding revenue, impairment of long-lived assets and the allowance for doubtful accounts.

Operating Properties

Operating properties are carried at historical cost less accumulated depreciation and impairment losses.  The cost of operating properties reflects their purchase price or development cost.  Costs incurred for the acquisition and renovation of an operating property are capitalized to the Partnership’s investment in that property.  Ordinary repairs and maintenance are expensed as incurred; major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.  Fully-depreciated assets are removed from the accounts.  

Purchase Price Allocation

The Partnership allocates the purchase price of properties to net tangible and identified intangible assets acquired based on fair values.  Above-market and below-market in-place lease values for acquired properties are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) the Partnership’s estimate of the fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancellable term of the lease.  Capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancellableterms of the respective leases.  Capitalized below-market lease values are amortized as an increase to rental income over the remaining non-cancellable terms of the respective leases, including any fixed-rate renewal periods.

Other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on the Partnership’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant.  The Partnership estimates the cost to execute leases with terms similar to the remaining lease terms of the in-place leases, include leasing commissions, legal and other related expenses.  This intangible asset is amortized to expense over the remaining term of the respective leases.  Partnership estimates of value are made using methods similar to those used by independent appraisers or by using independent appraisals.  Factors considered by thePartnership in their analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.  The Partnership also considers information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, the Partnership includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, which primarily range from three to twelve months. 

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

Characteristics considered by the Partnership in allocating value to its tenant relationships include the nature and extent of the Partnership’s business relationship with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals, among other factors.  The value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals, but in no event longer than the remaining depreciable life of the building. The value of in-place leases is amortized over the remaining non-cancellable term of the respective leases and any fixed-rate renewal periods. 

In the event that a tenant terminates its lease, the unamortized portion of each intangible, including market rate adjustments, in-place lease values and tenant relationship values, would be charged to expense. 

Revenue Recognition and Accounts Receivable

Rental revenue is recognized on the straight-line basis regardless of when payments are due.  The cumulative difference between lease revenue recognized under the straight-line method and contractual lease payment terms is recorded as “accrued rent receivable” on the accompanying balance sheets.  The straight-line rent adjustment increased revenue by approximately $4.4 million and $10.9 million for the three- and nine-month periods ended September 30, 2005 and approximately $1.0 million and $3.9 million for the three- and nine-month periods ended September 30, 2004.  Tenant receivables and accrued rent receivables are carried net of the allowances for doubtful accounts of $4.7 million as of September 30, 2005 and $4.1 million as ofDecember 31, 2004.  The allowance is based on management’s evaluation of the collectability of receivables, taking into account tenant specific considerations as well as the overall credit of the tenant portfolio.  The leases also typically provide for tenant reimbursement of common area maintenance and other operating expenses.   Tenant reimbursement revenue is recorded when earned, as the underlying expense of the Properties is incurred.  Other income is recorded when earned and is primarily comprised of termination fees received from tenants, bankruptcy settlement fees, third party leasing commissions, and third party management fees.  Other income includes net termination fees of $1.0 million and $5.9 million for the three- and nine-month periods ended September 30, 2005, and$.03 million and $1.2 million during for the three- and nine-month periods ended September 30, 2004.  Deferred rental revenue represents rental revenue received from tenants prior to their due dates.

SFAS No. 144, *Accounting for the Impairment or Disposal of Long-Lived Assets*, required us to separately report as discontinued operations the historical operating results attributable to operating properties sold and the applicable gain or loss on the disposition of the properties. The consolidated statements of operations for prior periods are also adjusted to conform with this classification. There is no impact on our previously reported consolidated financial position, net income or cash flows. In all cases, gains and losses are recognized using the full accrual method of accounting. Gains relating to transactions which do not meet the requirements of the full accrual method of accounting are deferred andrecognized when the full accrual method of accounting criteria are met.

Equity-Based Compensation Plans

In December 2002, the Financial Accounting Standards Board issued SFAS 148 (“SFAS 148”), *Accounting for Stock-Based Compensation – Transition and Disclosure*.  SFAS 148 amends SFAS 123 (“SFAS 123”), *Accounting for Stock-Based Compensation,* to provide alternative methods of transition for an entity that voluntarily adopts the fair value recognition method of recording stock option expense.  SFAS 148 also amends the disclosure provisions of SFAS 123 and APB Opinion No. 28, *Interim Financial Reporting*, to require disclosure in the summary of significant accounting policies of the effects of an entity’s accounting policy with respect to stock options on reported net income and earnings per sharein annual and interim financial statements.  The Partnership adopted SFAS 148 on a prospective basis for all grants subsequent to January 1, 2002.

Prior to 2002, the Partnership accounted for stock options issued by the Company under the recognition and measurement provisions of APB Opinion No. 25, *Accounting for Stock Issued to Employees and Related Interpretations*.  The following table illustrates the effect on net income available to Common Partnership Units if the fair value based method had been applied to all outstanding and unvested awards in each period (in thousands, except per unit amounts): 

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| ** **                                                                 |   | **Three-month periods**    |   |   | **Nine-month periods**     |   |
|----------------------------------------------------------------------------|--------|-------------------------------------------|--------|--------|-------------------------------------------|--------|
| ** **                                                                 |   | **ended September 30,**    |   |   | **ended September 30,**    |   |
|                                                                       |        |                                           |   |        |                                           |   |
| ** **                                                                 |   | **2005**                                  |   |   | **2004**                                  |   |   | **2005** |   |   | **2004** |   |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
| Net income allocated to Common Partnership Unitholders, as reported        | $      | 14,281                                    |   | $      | 19,178                                    |   | $ | 29,161 |   | $ | 50,626 |   |
|                                                                       |   |                                      |   |   |                                      |   |   |   |   |   |   |   |
| Add:  Stock based compensation expense included in reported net income     |   | 684                                       |   |   | 520                                       |   |   | 2,072 |   |   | 1,647 |   |
| Deduct:  Total stock based compensation expense determined under           |   |                                      |   |   |                                      |   |   |   |   |   |   |   |
|      fair value recognition method for all awards |   | (808                                      | )      |   | (659                                      | )      |   | (2,452 | ) |   | (2,064 | ) |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
| Pro forma net income available to Common Partnership Unitholders           | $      | 14,157                                    |   | $      | 19,039                                    |   | $ | 28,781 |   | $ | 50,209 |   |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
| Earnings per Common Partnership Unit                                       |   |                                      |   |   |                                      |   |   |   |   |   |   |   |
| Basic – as reported                                                   | $      | 0.25                                      |   | $      | 0.39                                      |   | $ | 0.50 |   | $ | 1.07 |   |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
| Basic – pro forma                                                     | $      | 0.24                                      |   | $      | 0.39                                      |   | $ | 0.50 |   | $ | 1.06 |   |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
|                                                                       |   |                                      |   |   |                                      |   |   |   |   |   |   |   |
| Diluted – as reported                                                 | $      | 0.24                                      |   | $      | 0.39                                      |   | $ | 0.50 |   | $ | 1.06 |   |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
| Diluted – pro forma                                                   | $      | 0.24                                      |   | $      | 0.39                                      |   | $ | 0.50 |   | $ | 1.06 |   |
|                                                                       |        |                                           |   |        |                                           |   |  |  |   |  |  |   |
|                                                                       |   |                                      |   |   |                                      |   |   |   |   |   |   |   |

Accounting for Derivative Instruments and Hedging Activities

The Partnership accounts for its derivative instruments and hedging activities under SFAS No. 133 (“SFAS 133”), *Accounting for Derivative Instruments and Hedging Activities*, and its corresponding amendments under SFAS No. 138, *Accounting for Certain Derivative Instruments and Hedging Activities – An Amendment of SFAS 133*.  SFAS 133 requires the Partnership to measure every derivative instrument (including certain derivative instruments embedded in other contracts) at fair value and record them in the balance sheet as either an asset or liability.  For derivatives designated as fair value hedges, the changes in fair value of both the derivative instrument and the hedged item are recorded in earnings.  For derivativesdesignated as cash flow hedges, the effective portions of changes in the fair value of the derivative are reported in other comprehensive income.  Changes in the ineffective portions of hedges are recognized in earnings in the current period.  For the nine-month periods ended September 30, 2005 and 2004, the Partnership was not party to any derivative contract designated as a fair value hedge.

The Partnership actively manages its ratio of fixed-to-floating rate debt.  To manage its fixed and floating rate debt in a cost-effective manner, the Partnership, from time to time, enters into interest rate swap agreements as cash flow hedges, under which it agrees to exchange various combinations of fixed and/or variable interest rates based on agreed upon notional amounts.

As of June 30, 2004, the Partnership had in place an interest rate cap agreement designated as a cash flow hedge that was designed to reduce the impact of interest rate changes on its variable rate debt.  The interest rate cap agreement effectively limited the interest rate on a mortgage with a notional value of $28 million at 8.7% per annum until July 2004.  The notional amount at June 30, 2004 provided an indication of the extent of the Partnership’s involvement in these instruments at that time, but did not represent exposure to credit, interest rate or market risks.  Prior to June 30, 2004, the Partnership had entered into interest rate swap agreements to effectively fix the LIBOR rate on $175 million of its creditfacility borrowings at approximately 4.2%.  On June 29, 2004, these hedges expired and all amounts held in accumulated other comprehensive income relating to these hedges have been reclassified to operations.

Income Taxes

No federal or state income taxes are payable by the Partnership, and accordingly, no provision for taxes has been made in the accompanying consolidated financial statements.  The partners are to include their respective share of the Partnership’s profits or losses in their individual tax returns.  The Partnership’s tax returns and the amount of allocable Partnership profits or losses, then the tax liability of the partners would be changed accordingly.

The Partnership owns a subsidiary REIT that has elected to be taxed as a real estate investment trust under Sections 856-860 of the Internal Revenue Code.  In management’s opinion, the requirements to maintain this election are being met.  The Partnership’s REIT subsidiary is subject to a 4% Federal excise tax if sufficient taxable income is not distributed within prescribed time limits.  The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the subsidiary’s ordinary income and (b) 95% of the subsidiary’s net capital gains exceeds cash distributions and certain taxes paid by the subsidiary.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

New Pronouncements

In October 2004, the Financial Accounting Standards Board issued SFAS No. 123R (revised 2004), “*Share-Based Payment*” (“SFAS 123R”).  SFAS 123R requires companies to categorize share-based payments as either liability or equity awards.  For liability awards, companies will remeasure the award at fair value at each balance sheet date until the award is settled.  Equity classified awards are measured at the fair value and are not remeasured.  SFAS 123R will be effective for annual periods beginning January 1, 2006.  Awards issued, modified, or settled after the effective date will be measured and recorded in accordance with SFAS 123R.  The Partnership believes that the implementation of thisstandard will not have a material effect on the Partnership’s consolidated financial position or results of operations.

In December 2004, the Financial Accounting Standards Board issued SFAS No. 153, “*Accounting for Non-monetary Transactions*” (“SFAS 153”).  SFAS 153 requires non-monetary exchanges to be accounted for at fair value, recognizing any gain or loss, if the transactions meet a commercial-substance criterion and fair value is determinable.   SFAS No. 153 is effective for non-monetary transactions occurring in fiscal years beginning after June 15, 2005.  The Partnership believes that the implementation of this standard will not have a material effect on the Partnership’s consolidated financial position or results of operations.

In  June  2005,  the  Financial  Accounting  Standards  Board  ratified the Emerging Issues Task Force  (“EITF”) Consensus  on  Issue  No.  04-5, “*Determining Whether a General Partner, or the General Partners as a Group, Controls  a Limited Partnership or Similar Entity When the Limited Partners Have  Certain Rights*.” The EITF agreed on a framework for evaluating when a general partner controls, and should consolidate, a limited partnership or a similar entity. The EITF is effective after June 29, 2005, for all newly formed limited partnerships and for any pre-existing limited partnerships that modify their partnership agreements after that date. General partners of all other limited partnerships must apply theconsensus no later that the first reporting period in fiscal years beginning after December 15, 2005.  The adoption of EITF 04-5 is not expected to have a material impact on the Partnership’s financial position or results of operations.

| 3. | REAL ESTATE INVESTMENTS |
|----|-------------------------|

As of September 30, 2005 and December 31, 2004, the carrying value of the Partnership’s operating properties was as follows:

|                      | **September 30,** |                       | **December 31,** |   |
|---------------------------|-------------------|----------------------------|------------------|--------|
|                      | **2005**          |                       | **2004**         |   |
|                      |                   |                       |                  |   |
|                      |              | **(amounts in thousands)** |             |
| Land                      | $                 | 464,098                    |             | $      | 452,602 |   |
| Building and improvements |              | 1,958,458                  |             |   | 1,892,153 |   |
| Tenant improvements       |              | 145,514                    |             |   | 138,379 |   |
|                      |                   |                       |                  |   |
|                      | $                 | 2,568,070                  |             | $      | 2,483,134 |   |
|                      |                   |                            |             |        |  |   |

*Acquisitions and Dispositions*

The Partnership’s acquisitions are accounted for by the purchase method.  The results of each acquired property are included in the Partnership’s results of operations from their respective purchase dates.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

*2005*

During the nine-month period ended September 30, 2005, the Partnership acquired one industrial property containing 385,884 net rentable square feet, two office properties containing 283,511 net rentable square feet and 36.4 acres of developable land for an aggregate purchase price of $94.5 million.  The Partnership sold one industrial property containing 385,884 net rentable square feet and three parcels of land containing 18.0 acres for an aggregate $30.2 million, realizing net gains totaling $6.8 million.

During the three-month period ended September 30, 2005, the Partnership acquired two office properties containing 283,511 net rentable square feet and 8 acres of developable land for an aggregate purchase price of $52.7 million.  The Partnership sold one industrial property containing 385,884 net rentable square feet and three parcels of land containing 18.0 acres for an aggregate $30.2 million, realizing net gains totaling $6.8 million.

*2004*

On September 21, 2004, the Partnership completed the acquisition of 100% of the partnership interests in The Rubenstein Company, L.P. (“TRC”). Through the acquisition, the Partnership acquired 14 office properties (the “TRC Properties”) located in Pennsylvania and Delaware that contain approximately 3.5 million net rentable square feet.  The results of TRC’s operations have been included in the consolidated financial statements since that date.

The aggregate consideration for the TRC Properties was $631.3 million, including $29.3 million of closing costs, debt prepayment penalties and debt premiums that are included in the basis of the assets acquired.  The consideration was paid with $540.4 million of cash, $79.3 million of debt assumed, $1.6 million of other liabilities assumed, and 343,006 Class A Units valued at $10.0 million.  The value of the debt assumed was based on prevailing market rates at the time of acquisition.  The value of the Class A Units was based on the average trading price of the Company’s common shares.

The following table summarizes the fair value of the assets acquired and liabilities assumed at the date of acquisition (in thousands): 

|                                                                    | **At September 21,** |    |
|-------------------------------------------------------------------------|----------------------|---------|
|                                                                    | **2004**             |    |
| **Real estate investments**                                             |                 |    |
|    Land                                                  | $                    | 105,302 |   |
|    Building and improvements                             |                 | 434,795 |   |
|    Tenant improvements                                   |                 | 20,322  |   |
|                                                                    |                      |         |   |
|    Total real estate investments acquired                |                 | 560,419 |   |
| **Rent receivables**                                                    |                 | 5,537   |   |
| **Other assets acquired:**                                              |                 |    |   |
|    Intangible assets:                                    |                 |    |   |
|       In-Place leases                     |                 | 49,455  |   |
|       Relationship values                 |                 | 35,548  |   |
|       Above-market leases                 |                 | 13,240  |   |
|                                                                    |                      |         |   |
|       Total intangible assets    acquired |                 | 98,243  |   |
|    Other assets                                          |                 | 6,292   |   |
|                                                                    |                      |         |   |
|    Total Other assets                                    |                 | 104,535 |   |
|                                                                    |                      |         |   |
| **Total assets acquired**                                               |                 | 670,491 |   |
| **Liabilities assumed:**                                                |                 |    |   |
|    Mortgage notes payable                                |                 | 79,330  |   |
|    Security deposits and deferred rent                   |                 | 618     |   |
|    Other liabilities:                                    |                 |    |   |
|       Below-market leases                 |                 | 39,204  |   |
|       Other liabilities                   |                 | 943     |   |
|                                                                    |                      |         |   |
|       Total other liabilities    assumed  |                 | 40,147  |   |
|                                                                    |                      |         |   |
|    Total liabilities assumed                             |                 | 120,095 |   |
|                                                                    |                      |         |   |
| **Net assets acquired**                                                 | $                    | 550,396 |   |
|                                                                    |                      |         |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

The Partnership agreed to issue the sellers up to a maximum of $9.7 million of additional Class A Units if certain of the TRC Properties achieve at least 95% occupancy prior to September 21, 2007.  At September 30, 2005, the maximum amount payable under this arrangement was $5.7 million.  Any contingent amounts ultimately payable would represent additional purchase price and would be reflected within the basis of the assets acquired and liabilities assumed.

At the closing of this transaction, the Partnership agreed not to sell the TRC Properties in a transaction that would trigger taxable income to the contributors (i.e., sellers) for periods ranging from three to 15 years.  In the event that the Partnership sells any of the properties in such a transaction within the applicable restricted period, the Partnership will be required to pay significant tax liabilities that would be incurred by the contributors.

Pro forma information relating to    the acquisition of TRC is presented below as if TRC was acquired and the    related financing transactions occurred on January 1, 2004. These pro forma    results are not necessarily indicative of the results which actually would    have occurred if the acquisition had occurred on the first day of the periods    presented, nor does the pro forma financial information purport to represent    the results of operations for future periods (in thousands, except per unitamounts):

|                                          | **Three-month period**       |   | **Nine-month period**        |            |
|-----------------------------------------------|------------------------------|--------|------------------------------|-----------------|
|                                          | **ended September 30, 2004** |   | **ended September 30, 2004** |            |
|                                          |                              |   |                              |            |
|                                          | **(unaudited)**              |   |                         | **(unaudited)** |   |
| Pro forma revenue                             | $                            | 98,901 |                         | $               | 288,048 |   |
| Pro forma income from continuing operations   |                         | 21,251 |                         |            | 57,241 |   |
|                                          |                         |   |                         |            |   |   |
| Earnings per unit from continuing operations  |                         |   |                         |            |   |   |
|    Basic — as reported    | $                            | .34    |                         | $               | 1.02 |   |
|                                          |                              |        |                         |                 |  |   |
|    Basic — as pro forma   | $                            | .33    |                         | $               | .99 |   |
|                                          |                              |        |                         |                 |  |   |
|    Diluted — as reported  | $                            | .34    |                         | $               | 1.01 |   |
|                                          |                              |        |                         |                 |  |   |
|    Diluted — as pro forma | $                            | .33    |                         | $               | .98 |   |
|                                          |                              |        |                         |                 |  |   |

In addition to the TRC acquisition discussed above, during the three-month period ended September 30, 2004, the Partnership acquired one office property containing approximately 170,000 rentable square feet and 59 acres of developable land in separate transactions for an aggregate purchase price of $22.9 million.  Additionally, the Partnership purchased and sold a land parcel containing 93 acres in two separate transactions with unrelated third parties.  The purchase and sale resulted in a net gain of approximately $1.5 million.

During the three-month period ended September 30, 2004, the Partnership recognized a $2.5 million deferred gain from the sale of a property in 2002 that did not qualify for gain recognition under the full-accrual method.  During the third quarter 2004, the buyer of the property repaid the seller provided financing and the criteria for full-accrual method was met.  The deferred gain recognized was presented within discontinued operations consistent with the historical operating results from the property.  

During the nine-month period ended September 30, 2004, the Partnership sold two office properties containing 141,000 net rentable square feet, one industrial property containing 45,000 net rentable square feet and three land parcels containing 29.3 acres for an aggregate of $25.9 million, realizing a net gain of $1.7 million.  During the three-month period ended September 30, 2004, the Partnership sold two land parcels containing 24.0 acres for an aggregate price of $1.6 million, realizing net gains totaling $0.2 million.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| 4. | INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES |
|----|---------------------------------------------------|

As of September 30, 2005, the Partnership had an aggregate investment of approximately $13.3 million in nine unconsolidated Real Estate Ventures (net of returns of investment).  The Partnership formed these ventures with unaffiliated third parties to develop office properties or to acquire land in anticipation of possible development of office properties.  Seven of the Real Estate Ventures own eight office buildings that contain an aggregate of approximately 1.6 million net rentable square feet, one Real Estate Venture developed a hotel property that contains 137 rooms and one Real Estate Venture is developing an office property located in Charlottesville, Virginia. 

The Partnership also has investments in two real estate ventures (Four Tower Bridge Associates and Six Tower Bridge Associates) that are considered to be variable interest entities under FIN 46R and of which the Partnership is the primary beneficiary.  The financial information for these two real estate ventures was consolidated into the Partnership’s consolidated financial statements effective March 31, 2004.  Prior to March 31, 2004, the Partnership accounted for its investment in these two ventures under the equity method.

The Partnership accounts for its non-consolidating interests in its Real Estate Ventures using the equity method.  Non-consolidating ownership interests range from 6% to 50%, subject to specified priority allocations in certain of the Real Estate Ventures.  The Partnership’s investments, initially recorded at cost, are subsequently adjusted for the Partnership’s share of the Real Estate Ventures’ income or loss and cash contributions and distributions.  

The following is a summary of the financial position of the Real Estate Ventures as of September 30, 2005 and December 31, 2004 (in thousands):

| ** **                                             |   | **September 30,** |   |   | **December 31,** |   |
|--------------------------------------------------------|--------|-------------------|--------|--------|------------------|--------|
| ** **                                             |   | **2005**          |   |   | **2004**         |   |
|                                                   |        |                   |   |        |                  |   |
| Operating property, net of accumulated depreciation    | $      | 286,704           |   | $      | 294,378          |   |
| Other assets                                           |   | 28,989            |   |   | 29,944           |   |
| Liabilities                                            |   | 25,937            |   |   | 26,989           |   |
| Debt                                                   |   | 205,559           |   |   | 209,624          |   |
| Equity                                                 |   | 84,197            |   |   | 87,709           |   |
| Partnership’s share of equity (Partnership basis) |   | 13,335            |   |   | 12,754           |   |
|                                                   |   |              |   |   |             |   |

|   |                                                                                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | The following is a summary of results of operations of the Real Estate Ventures for the three- and nine-month periods ended September 30, 2005 and 2004 (in thousands): |

|                                                   |   |                    |   |   |                    |   |   |     |   |   |     |   |
|--------------------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|----------|--------|--------|----------|--------|
| ** **                                             |   | **Three-month periods** |   |   | **Nine-month periods**  |   |
| ** **                                             |   | **ended September 30,** |   |   | **ended September 30,** |   |
|                                                   |        |                    |        |   |
| ** **                                             |   | **2005**                |   |   | **2004**                |   |   | **2005** |   |   | **2004** |   |
|                                                   |        |                         |   |        |                         |   |        |          |   |        |          |   |
| Revenue                                                | $      | 14,800                  |   | $      | 11,740                  |   | $      | 46,938   |   | $      | 33,370   |   |
| Operating expenses                                     |   | 7,123                   |   |   | 4,484                   |   |   | 24,573   |   |   | 13,533   |   |
| Interest expense, net                                  |   | 3,238                   |   |   | 3,003                   |   |   | 8,844    |   |   | 8,847    |   |
| Depreciation and amortization                          |   | 2,255                   |   |   | 1,690                   |   |   | 6,697    |   |   | 5,902    |   |
| Net income                                             |   | 2,184                   |   |   | 2,563                   |   |   | 6,824    |   |   | 5,087    |   |
| Partnership’s share of income (Partnership basis) |   | 745                     |   |   | 665                     |   |   | 2,296    |   |   | 1,573    |   |

As of September 30, 2005, the Partnership had guaranteed repayment of approximately $0.6 million of loans for the Real Estate Ventures.  The Partnership also provides customary environmental indemnities in connection with construction and permanent financing both for its own account and on behalf of the Real Estate Ventures.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| 5. | INTANGIBLE ASSETS |
|----|-------------------|

As of September 30, 2005 and December 31, 2004, the Partnership’s intangible assets were comprised of the following (in thousands):

| ** **                          |   | **September 30, 2005**       |   |
|-------------------------------------|--------|------------------------------------------------------------|--------|
|                                |        |                                                            |        |  |  |  |  |  |   |
| ** **                          |   | **Total Cost**                                             |   |   | **Accumulated Amortization** |   |   | **Deferred Costs, net** |   |
|                                |        |                                                            |   |  |  |   |  |  |   |
| In-place lease value                | $      | 48,118                                                     |   | $ | (11,148 | ) | $ | 36,970 |   |
| Tenant relationship value           |   | 37,540                                                     |   |   | (4,522 | ) |   | 33,018 |   |
| Above market leases acquired        |   | 14,819                                                     |   |   | (3,532 | ) |   | 11,287 |   |
|                                |        |                                                            |   |  |  |   |  |  |   |
|      Total | $      | 100,477                                                    |   | $ | (19,202 | ) | $ | 81,275 |   |
|                                |        |                                                            |   |  |  |   |  |  |   |
|                                |   |                                                       |   |   |   |   |   |   |   |
| ** **                          |   | **December 31, 2004**        |   |
|                                |        |                                                            |        |  |  |  |  |  |   |
| ** **                          |   | **Total Cost**                                             |   |   | **Accumulated Amortization** |   |   | **Deferred Costs, net** |   |
|                                |        |                                                            |   |  |  |   |  |  |   |
| In-place lease value                | $      | 55,165                                                     |   | $ | (6,117 | ) | $ | 49,048 |   |
| Tenant relationship value           |   | 40,570                                                     |   |   | (2,377 | ) |   | 38,193 |   |
| Above market leases acquired        |   | 15,685                                                     |   |   | (1,870 | ) |   | 13,815 |   |
|                                |        |                                                            |   |  |  |   |  |  |   |
|      Total | $      | 111,420                                                    |   | $ | (10,364 | ) | $ | 101,056 |   |
|                                |        |                                                            |   |  |  |   |  |  |   |

The reductions in the historical cost values during the nine-month period ended September 30, 2005 were due to re-allocations of the Partnership’s purchase price for the TRC Properties among the assets acquired and liabilities assumed based on final appraisals and the retirement of assets that became fully amortized during the aforementioned period.

| 6. | MORTGAGE NOTES PAYABLE |
|----|------------------------|

The following table sets forth information regarding our mortgage indebtedness outstanding at September 30, 2005 and December 31, 2004 (in thousands):

| **  **                                                        |   |   | ** **        |   |   |             |   | **Effective** |   | ** ** | ** **   |   |
|-------------------------------------------------------------------------|--------|--------|-------------------|--------|--------|------------------|--------|---------------|--------|------------|--------------|--------|
| **  **                                                        |   |   | **September 30,** |   |   | **December 31,** |   | **Interest**  |   | ** ** | **Maturity** |   |
| **Property / Location**                                                 |   |   | **2005**          |   |   | **2004**         |   | **Rate**      |   | ** ** | **Date**     |   |
|                                                                         |   |        |                   |   |        |                  |   |               |   |       |              |   |
| Grande B                                                                |   | $      | 79,398            |   | $      | 80,429           |   | 7.48          | %      |            | Jul-27       |   |
| Two Logan Square                                                        |   |   | 72,736            |   |   | 73,511           |   | 5.78          | %      | (a)        | Jul-09       |   |
| Newtown Square/Berwyn     Park/Libertyview     |   |   | 64,640            |   |   | 65,442           |   | 7.25          | %      |            | May-13       |   |
| Midlantic Drive/Lenox Drive/DCC I                                       |   |   | 64,146            |   |   | 64,942           |   | 8.05          | %      |            | Oct-11       |   |
| Grande A                                                                |   |   | 61,374            |   |   | 62,177           |   | 7.48          | %      |            | Jul-27       |   |
| Plymouth Meeting Exec.                                                  |   |   | 44,826            |   |   | 45,226           |   | 7.00          | %      | (a)        | Dec-10       |   |
| Arboretum I, II, III & V                                            |   |   | 23,354            |   |   | 23,690           |   | 7.59          | %      |            | Jul-11       |   |
| Six Tower Bridge                                                        |   |   | 15,162            |   |   | 15,394           |   | 7.79          | %      |       | Aug-12       |   |
| Grande A                                                                |   |   | 12,214            |   |   | 17,157           |   | 6.60          | %      | (b)        | Jul-27       |   |
| 400 Commerce Drive                                                      |   |   | 12,038            |   |   | 12,175           |   | 7.12          | %      |       | Jun-08       |   |
| Four Tower Bridge                                                       |   |   | 10,795            |   |   | 10,890           |   | 6.62          | %      |       | Feb-11       |   |
| Croton Road                                                             |   |   | 6,012             |   |   | 6,100            |   | 7.81          | %      |       | Jan-06       |   |
| 200 Commerce Drive                                                      |   |   | 5,928             |   |   | 5,976            |   | 7.12          | %      | (a)        | Jan-10       |   |
| Southpoint III                                                          |   |   | 5,545             |   |   | 5,877            |   | 7.75          | %      |       | Apr-14       |   |
| 440 & 442 Creamery Way                                              |   |   | 5,619             |   |   | 5,728            |   | 8.55          | %      |       | Jul-07       |   |
| Norriton Office Center                                                  |   |   | 5,211             |   |   | 5,270            |   | 8.50          | %      |       | Oct-07       |   |
| 429 Creamery Way                                                        |   |   | 2,968             |   |   | 3,087            |   | 8.30          | %      |       | Sep-06       |   |
| 481 John Young Way                                                      |   |   | 2,375             |   |   | 2,420            |   | 8.40          | %      |       | Nov-07       |   |
| Grande A                                                                |   |   | 2,085             |   |   | 3,040            |   | 6.77          | %      | (b)        | Jul-27       |   |
| 111 Arrandale Blvd                                                      |   |   | 1,058             |   |   | 1,100            |   | 8.65          | %      |       | Aug-06       |   |
| Interstate Center                                                       |   |   | 817               |   |   | 959              |   | 5.06          | %      | (b)        | Mar-07       |   |
|                                                               |   |        |                   |   |        |                  |   |          |   |       |         |   |
| Principal balance outstanding                                           |   |   | 498,301           |   |   | 510,590          |   |          |   |       |         |   |
| Plus: unamortized fixed-rate debt     premiums |   |   | 6,368             |   |   | 7,644            |   |          |   |       |         |   |
|                                                               |   |        |                   |   |        |                  |   |          |   |       |         |   |
| Total mortgage indebtedness                                             |   | $      | 504,669           |   | $      | 518,234          |   |          |   |       |         |   |
|                                                               |   |        |                   |   |        |                  |   |          |   |       |         |   |
|                                                                    |   |   |              |   |   |             |   |          |   |       |         |   |

|   |   | (a) | Loans were assumed upon acquisition of the related property.  Interest rates presented above reflect the market rate at the time of acquisition. |
|--------|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | (b) | For loans that bear interest at a variable rate, the rates in effect at September 30, 2005 have been presented. |
|--------|--------|-----|-----------------------------------------------------------------------------------------------------------------|

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

During the nine-month periods ended September 30, 2005 and 2004, the Partnership’s weighted-average interest rate on its mortgage notes payable was 7.21% and 7.12%, respectively.

| 7. | UNSECURED NOTES |
|----|-----------------|

The following table sets forth information regarding our unsecured notes outstanding (in thousands):

| ** **                                                                                                                                  |   | **September 30,** |   |   | **December 31,** |   | ** **   | **Stated**        |   |   | **Effective**         |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|------------------|--------|--------------|-------------------|--------|--------|-----------------------|--------|--------|
| **Year**                                                                                                                                    |   | **2005**          |   |   | **2004**         |   | **Maturity** | **Interest Rate** |   |   | **Interest Rate (1)** |   |   |
|                                                                                                                                             |        |                   |   |        |                  |   |              |                   |   |   |                       |   |   |
|      2008                                                                                                          | $      | 113,000           |   | $      | 113,000          |   | Dec-08       | 4.34              | %      |   | 4.34                  | %      |   |
|      2009                                                                                                          |   | 275,000           |   |   | 275,000          |   | Nov-09       | 4.50              | %      |   | 4.62                  | %      |   |
|      2014                                                                                                          |   | 250,000           |   |   | 250,000          |   | Nov-14       | 5.40              | %      |   | 5.53                  | %      |   |
|                                                                                                                                        |        |                   |   |        |                  |   |         |              |   |   |                  |   |   |
| Total face amount                                                                                                                           |   | 638,000           |   |   | 638,000          |   |         |              |   |   |                  |   |   |
|                                                                                                                                        |        |                   |   |        |                  |   |         |              |   |   |                  |   |   |
| Less: unamortized discounts                                                                                                                 |   | (1,418            | )      |   | (1,565           | )      |         |              |   |   |                  |   |   |
| Total unsecured notes                                                                                                                       | $      | 636,582           |   | $      | 636,435          |   |         |              |   |   |                  |   |   |
|                                                                                                                                        |        |                   |   |        |                  |   |         |              |   |   |                  |   |   |
| (1) Rates include    the effect of amortization related to discounts and costs related to settlement    of treasury lock agreements.   |   |

The indenture relating to the 2009 and 2014 unsecured notes contains various financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40%, (3) a debt service coverage ratio of greater than 1.5 to 1.0, and (4) an unencumbered asset value of not less than 150% of unsecured debt.  In addition, the note purchase agreement relating to the 2008 unsecured notes contains covenants that are similar to the above covenants.

| 8. | UNSECURED CREDIT FACILITY |
|----|---------------------------|

The Partnership utilizes credit facility borrowings for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  The Partnership maintains a $450.0 million unsecured credit facility (the “Credit Facility”) that matures in May 2007.  Borrowings under the Credit Facility generally bear interest at LIBOR plus a spread over LIBOR ranging from 0.65% to 1.2% based on the Partnership’s unsecured senior debt rating.  The Partnership has the option to increase the Credit Facility to $600.0 million subject to the absence of any defaults and the Partnership’s ability to acquire additional commitments from our existing lenders or new lenders.  As of September30, 2005, the Partnership had $340.0 million of borrowings and $10.7 million of letters of credit outstanding under the Credit Facility, leaving $99.3 million of unused availability.  For the nine-month periods ended September 30, 2005 and 2004, the weighted-average interest rate on the Partnership’s unsecured credit facilities, including the effect of interest rate hedges during 2004, was 4.40% during 2005 and 3.98% during 2004.

The Credit Facility requires the maintenance of certain ratios related to minimum net worth, debt-to-total capitalization and fixed charge coverage and various non-financial covenants.  

| 9. | RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS |
|----|--------------------------------------------------|

Risk Management

In the normal course of its on-going business operations, the Partnership encounters economic risk.  There are three main components of economic risk: interest rate risk, credit risk and market risk.  The Partnership is subject to interest rate risk on its interest-bearing liabilities.  Credit risk is the risk of inability or unwillingness of tenants to make contractually required payments.  Market risk is the risk of declines in the value of properties due to changes in rental rates, occupancy levels, interest rates or other market factors affecting the valuation of properties held by the Partnership.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

Use of Derivative Financial Instruments

The Partnership’s use of derivative instruments is limited to the utilization of interest rate agreements or other instruments to manage interest rate risk exposures and not for speculative purposes.  The principal objective of such arrangements is to minimize the risks and/or costs associated with the Partnership’s operating and financial structure, as well as to hedge specific transactions.  The counterparties to these arrangements are major financial institutions with which the Partnership and its affiliates may also have other financial relationships.  The Partnership is potentially exposed to credit loss in the event of non-performance by these counterparties.  However, because of the high credit ratings of the counterparties,the Partnership does not anticipate that any of the counterparties will fail to meet these obligations as they come due.  The Partnership does not hedge credit or property value market risks.

The Partnership formally assesses, both at inception of the hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item.  If management determines that a derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Partnership will discontinue hedge accounting prospectively.

As of September 30, 2005 and December 31, 2004, the Partnership was not party to any derivative financial instruments.  

In October 2004, in anticipation of the offering of the 2009 and 2014 unsecured notes, the Partnership entered into treasury lock agreements.  The treasury lock agreements were designated as cash flow hedges of interest rate risk and qualified for hedge accounting.  The treasury lock agreements were for notional amounts totaling $194.8 million for an expiration of five years at an all-in-rate of 4.8% and for notional amounts totaling $188.0 million for an expiration of 10 years at an all-in-rate of 5.6%.  The treasury lock agreements were settled in October 2004 upon the completion of the offering of the 2009 and 2014 unsecured notes at a total cost of approximately $3.2 million.  The cost was recorded as a component of accumulated othercomprehensive loss and is being amortized to interest expense over the terms of the respective unsecured notes.

As of June 30, 2004, the Partnership had in place an interest rate cap agreement designated as a cash flow hedge that was designed to reduce the impact of interest rate changes on its variable rate debt.  The interest rate cap agreement effectively limited the interest rate on a mortgage with a notional value of $28 million at 8.7% per annum until July 2004.  The notional amount at June 30, 2004 provided an indication of the extent of the Partnership’s involvement in these instruments at that time, but did not represent exposure to credit, interest rate or market risks.  Prior to June 30, 2004, the Partnership had entered into interest rate swap agreements to effectively fix the LIBOR rate on $175 million of its creditfacility borrowings at approximately 4.2%.  On June 29, 2004, these hedges expired and all amounts held in accumulated other comprehensive income relating to these hedges have been reclassified to operations.   

Concentration of Credit Risk

Concentrations of credit risk arise when a number of tenants related to the Partnership’s investments or rental operations are engaged in similar business activities, or are located in the same geographic region, or have similar economic features that would cause their inability to meet contractual obligations, including those to the Partnership, to be similarly affected.  The Partnership regularly monitors its tenant base to assess potential concentrations of credit risk.  Management believes the current portfolio is reasonably well diversified and does not contain any unusual concentration of credit risk.   No tenant accounted for 5% or more of the Partnership’s rents during the three- and nine-month periods ended September 30, 2005or 2004.   

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| 10. | DISCONTINUED OPERATIONS |
|-----|-------------------------|

For the three- and nine-month periods ended September 30, 2005, income from discontinued operations relates to one property that the Partnership sold during 2005.  The following table summarizes the revenue and expense information for the three- and nine-month periods ended September 30, 2005 (in thousands):

| ** **                                        |   |   | ** **                          |   |   | ** **               | **Three-month period**       |   | **Nine-month period**        |   |
|---------------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------|------------------------------|--------|------------------------------|--------|
| ** **                                        |   |   | ** **                          |   |   | ** **               | **ended September 30, 2005** |   | **ended September 30, 2005** |   |
|                                              |   |   |                                |   |   |                     |                              |        |                         |        |  |   |
| **Revenue:**                                      |   |   |                                |   |   |                     |
|                                              |   |   | Rents                               | $      | 74     |                     | $                            | 206    |                         |
|                                              |   |   | Tenant reimbursements               |   | 22     |                     |                         | 63     |                         |
|                                              |   |   | Other                               |   | — |                     |                         | 6      |                         |
|                                              |   |   |                                |   |   |                     |                              |        |                         |        |  |   |
|                                              |   |   |                                |   |   | Total revenue            |                         | 96     |                         |   | 275 |   |
|                                              |   |   |                                |   |   |                     |                         |   |                         |   |   |   |
| **Expenses:**                                     |   |   |                                |   |   |                     |
|                                              |   |   | Property operating expenses         |   | 72     |                     |                         | 178    |                         |
|                                              |   |   | Real estate taxes                   |   | — |                     |                         | 85     |                         |
|                                              |   |   | Depreciation and amortization       |   | 43     |                     |                         | 171    |                         |
|                                              |   |   |                                |   |   |                     |                              |        |                         |        |  |   |
|                                              |   |   |                                |   |   | Total operating expenses |                         | 115    |                         |   | 434 |   |
|                                              |   |   |                                |   |   |                     |                         |   |                         |   |   |   |
| Loss from discontinued operations before net gain |   |   |                                |   |   |                     |
|                                              |   |   | on sale of interests in real estate |   | (19    | )                        |                         | (159   | )                            |
| Net gain on sales of interest in real estate      |   | 2,196  |                                |   | 2,196  |                     |
|                                              |   |   |                                |   |   |                     |                              |        |                         |        |  |   |
| Income from discontinued operations               | $      | 2,177  |                                | $      | 2,037  |                     |
|                                              |   |   |                                |   |   |                     |                              |        |                         |        |  |   |

For the three- and nine-month periods ended September 30, 2004, income from discontinued operations relates to one property that the Partnership sold during 2004.  The following table summarizes the revenue and expense information for the three- and nine-month periods ended September 30, 2004 (in thousands):

|                                              |   |   |                                |   |   |                     |   | **Three-month period**       |   | **Nine-month period**        |   |
|---------------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------------|--------|------------------------------|--------|------------------------------|--------|
|                                              |   |   |                                |   |   |                     |   | **ended September 30, 2004** |   | **ended September 30, 2004** |   |
|                                              |   |   |                                |   |   |                     |   |                              |   |                              |   |
| **Revenue:**                                      |   |   |                                |   |   |                     |   |
|                                              |   |   | Rents                               |   | $      | 109                      |   | $                            | 377    |                         |
|                                              |   |   | Tenant reimbursements               |   |   | 77                       |   |                         | 373    |                         |
|                                              |   |   | Other                               |   |   | —                   |   |                         | 17     |                         |
|                                              |   |   |                                |   |   |                     |   |                              |   |                              |   |
|                                              |   |   |                                |   |   | Total revenue            |   |                         | 186    |                         |   | 767 |   |
|                                              |   |   |                                |   |   |                     |   |                         |   |                         |   |   |   |
| **Expenses:**                                     |   |   |                                |   |   |                     |   |
|                                              |   |   | Property operating expenses         |   |   | 125                      |   |                         | 586    |                         |
|                                              |   |   | Real estate taxes                   |   |   | 61                       |   |                         | 215    |                         |
|                                              |   |   | Depreciation and amortization       |   |   | 27                       |   |                         | 207    |                         |
|                                              |   |   |                                |   |   |                     |   |                              |   |                              |   |
|                                              |   |   |                                |   |   | Total operating expenses |   |                         | 213    |                         |   | 1,008 |   |
|                                              |   |   |                                |   |   |                     |   |                         |   |                         |   |   |   |
| Loss from discontinued operations before net gain |   |   |                                |   |   |                     |   |
|                                              |   |   | on sale of interests in real estate |   |   | (27                      | )      |                         | (241   | )                            |
| Net gain on sales of interest in real estate      |   |   | 2,486                               |   |   | 2,735                    |   |
|                                              |   |   |                                |   |   |                     |   |                              |   |                              |   |
| Income from discontinued operations               |   | $      | 2,459                               |   | $      | 2,494                    |   |
|                                              |   |   |                                |   |   |                     |   |                              |   |                              |   |

Discontinued operations have not been segregated in the consolidated statements of cash flows.  Therefore, amounts for certain captions will not agree with respective data in the consolidated statements of operations.

| 11. | PARTNERS’ EQUITY |
|-----|------------------------|

On September 20, 2005, the Partnership declared a distribution of $0.44 per Common Partnership Unit, totaling $24.9 million, which was paid on October 17, 2005 to unit holders of record as of October 5, 2005.  On this same date, the Partnership declared a $0.44 per unit cash distribution to holders of Class A Units totaling $0.9 million.

On September 20, 2005, the Partnership declared distributions to holders of its Series D Preferred Mirror Units and Series E Preferred Mirror Units to holders of record as of September 30, 2005.  The units are currently entitled to a cumulative preferential return of 7.50% and 7.375%, respectively.  Distributions paid on October 17, 2005 to holders of Series D Preferred Mirror Units and Series E Preferred Mirror Units totaled $0.9 million and $1.1 million, respectively.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| 12. | EARNINGS PER COMMON PARTNERSHIP UNIT |
|-----|--------------------------------------|

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):

| ** **                                             |   | **Three-month periods ended September 30,** |   |
|--------------------------------------------------------|--------|---------------------------------------------|--------|
|                                                   |   |                                             |   |
| ** **                                             |   | **2005**                                    |   |   | **2004** |   |
|                                                   |   |                                             |   |   |  |   |
| ** **                                             |   | **Basic**                                   |   |   | **Diluted** |   |   | **Basic** |   |   | **Diluted** |   |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |
| Income from continuing operations                      | $      | 14,102                                      |   | $ | 14,102 |   | $ | 19,396 |   | $ | 19,396 |   |
| Income from discontinued operations                    |   | 2,177                                       |   |   | 2,177 |   |   | 2,459 |   |   | 2,459 |   |
| Income allocated to Preferred Units                    |   | (1,998                                      | )      |   | (1,998 | ) |   | (2,677 | ) |   | (2,677 | ) |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |
| Net income available to common partnership unitholders | $      | 14,281                                      |   | $ | 14,281 |   | $ | 19,178 |   | $ | 19,178 |   |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |
|                                                   |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common partnership units outstanding  |   | 58,040,651                                  |   |   | 58,040,651 |   |   | 48,681,057 |   |   | 48,681,057 |   |
| Options                                                |   | —                                      |   |   | 300,040 |   |   | — |   |   | 240,844 |   |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |
| Total weighted-average partnership units outstanding   |   | 58,040,651                                  |   |   | 58,340,691 |   |   | 48,681,057 |   |   | 48,921,901 |   |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |
|                                                   |   |                                        |   |   |   |   |   |   |   |   |   |   |
| Earnings per Common Partnership Unit:                  |   |                                        |   |   |   |   |   |   |   |   |   |   |
|      Continuing operations    | $      | 0.21                                        |   | $ | 0.21 |   | $ | 0.34 |   | $ | 0.34 |   |
|      Discontinued operations  |   | 0.04                                        |   |   | 0.04 |   |   | 0.05 |   |   | 0.05 |   |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |
|                                                   | $      | 0.25                                        |   | $ | 0.24 |   | $ | 0.39 |   | $ | 0.39 |   |
|                                                   |        |                                             |   |  |  |   |  |  |   |  |  |   |

| ** **                                             |   | **Nine-month periods ended September 30,** |   |
|--------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                   |   |                                            |   |
| ** **                                             |   | **2005**                                   |   |   | **2004** |   |
|                                                   |   |                                            |   |   |  |   |
| ** **                                             |   | **Basic**                                  |   |   | **Diluted** |   |   | **Basic** |   |   | **Diluted** |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |
| Income from continuing operations                      | $      | 33,118                                     |   | $ | 33,118 |   | $ | 51,836 |   | $ | 51,836 |   |
| Income from discontinued operations                    | $      | 2,037                                      |   | $ | 2,037 |   | $ | 2,494 |   | $ | 2,494 |   |
| Income allocated to Preferred Units                    |   | (5,994                                     | )      |   | (5,994 | ) | $ | (8,204 | ) | $ | (8,204 | ) |
| Preferred unit redemption gain                         |   | —                                     |   |   | — |   |   | 4,500 |   |   | 4,500 |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |
| Net income available to common partnership unitholders | $      | 29,161                                     |   | $ | 29,161 |   | $ | 50,626 |   | $ | 50,626 |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |
|                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common partnership units outstanding  | $      | 57,761,348                                 |   | $ | 57,761,348 |   | $ | 47,303,034 |   | $ | 47,303,034 |   |
| Options                                                |   | —                                     |   |   | 234,543 |   |   | — |   |   | 238,346 |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |
| Total weighted-average partnership units outstanding   |   | 57,761,348                                 |   |   | 57,995,891 |   |   | 47,303,034 |   |   | 47,541,380 |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |
|                                                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
| Earnings per Common Partnership Unit                   |   |                                       |   |   |   |   |   |   |   |   |   |   |
|      Continuing operations    | $      | 0.47                                       |   | $ | 0.47 |   | $ | 1.02 |   | $ | 1.01 |   |
|      Discontinued operations  |   | 0.04                                       |   |   | 0.04 |   |   | 0.05 |   |   | 0.05 |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |
|                                                   | $      | 0.50                                       |   | $ | 0.50 |   | $ | 1.07 |   | $ | 1.06 |   |
|                                                   |        |                                            |   |  |  |   |  |  |   |  |  |   |

Securities (including Series A Preferred Mirror Units) totaling 1,339,286 as of September 30, 2004 were excluded from the earnings per common partnership unit computations for the three and nine-months ended September 30, 2004 because their effect would have been antidilutive.  All of the Series A Preferred Mirror Units were redeemed by the Partnership in February 2004 and are no longer outstanding.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| 13. | SEGMENT INFORMATION |
|-----|---------------------|

The Partnership currently manages its portfolio within five segments:  (1) Pennsylvania–West, (2) Pennsylvania–North, (3) New Jersey, (4) Urban and (5) Virginia.  The Pennsylvania–West segment includes properties in Chester, Delaware and Montgomery counties in the Philadelphia suburbs of Pennsylvania.  The Pennsylvania–North segment includes properties north of Philadelphia in Berks, Bucks, Cumberland, Dauphin, Lehigh and Montgomery counties.  The New Jersey segment includes properties in counties in the southern part of New Jersey including Burlington, Camden and Mercer counties and in Bucks County, Pennsylvania.  The Urban segment includes properties in the City of Philadelphia, Pennsylvania and the state of Delaware.  TheVirginia segment includes properties primarily in Albemarle, Chesterfield and Henrico counties, the City of Richmond and Durham, North Carolina.  Corporate is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions.

Segment information as of and for the three-month periods ended September 30, 2005 and 2004 is as follows (in thousands):

| ** **                                              |   |   | **Pennsylvania – West** |   |   | **Pennsylvania – North** |   |   | **New Jersey** |   |   | **Urban** |   |   | **Virginia** |   |   | **Corporate** |   |   | **Total** |   |
|---------------------------------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|----------------|--------|--------|-----------|--------|--------|--------------|--------|--------|---------------|--------|--------|-----------|--------|
|                                                    |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| As of September 30, 2005:                               |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|                                                         |        |        |                              |        |        |                               |        |        |                |        |        |           |        |        |              |        |        |               |        |        |           |        |
| Real estate investments, at cost:                       |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|      Operating properties      |   | $      | 887,637                      |   | $      | 556,987                       |   | $      | 553,213        |   | $      | 350,563   |   | $      | 219,670      |   | $      | —        |   | $      | 2,568,070 |   |
|      Construction-in-progress  |   |   | 22,494                       |   |   | 24,251                        |   |   | 14,542         |   |   | 7,854     |   |   | 2,325        |   |   | 169,283       |   |   | 240,749   |   |
|      Land held for development |   |   | 10,655                       |   |   | 31,928                        |   |   | 28,769         |   |   | 6,059     |   |   | 7,960        |   |   | 715           |   |   | 86,086    |   |
|                                                    |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
| As of December 31, 2004:                                |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|                                                         |        |        |                              |        |        |                               |        |        |                |        |        |           |        |        |              |        |        |               |        |        |           |        |
| Real estate investments, at cost:                       |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|      Operating properties      |   | $      | 830,622                      |   | $      | 533,142                       |   | $      | 553,969        |   | $      | 349,911   |   | $      | 215,490      |   | $      | —        |   | $      | 2,483,134 |   |
|      Construction-in-progress  |   |   | 13,140                       |   |   | 24,591                        |   |   | 10,994         |   |   | 3,581     |   |   | 3,789        |   |   | 88,921        |   |   | 145,016   |   |
|      Land held for development |   |   | 9,820                        |   |   | 27,964                        |   |   | 14,585         |   |   | 516       |   |   | 7,959        |   |   | 673           |   |   | 61,517    |   |
|                                                    |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
| For the three-months ended September 30, 2005:          |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|                                                         |   |   |                         |        |        |                               |        |        |                |        |        |           |        |        |              |        |        |               |        |        |           |        |
| Total revenue                                           |   | $      | 25,964                       |   | $      | 19,388                        |   | $      | 24,845         |   | $      | 16,389    |   | $      | 7,336        |   | $      | 1,856         |   | $      | 95,778    |   |
| Property operating expenses                             |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|      and real estate taxes     |   |   | 8,226                        |   |   | 8,809                         |   |   | 10,540         |   |   | 6,546     |   |   | 2,818        |   |   | 5             |   |   | 36,944    |   |
|                                                    |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| Net operating income                                    |   | $      | 17,738                       |   | $      | 10,579                        |   | $      | 14,305         |   | $      | 9,843     |   | $      | 4,518        |   | $      | 1,851         |   | $      | 58,834    |   |
|                                                    |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| For the three-months ended September 30, 2004:          |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|                                                         |   |   |                         |        |        |                               |        |        |                |        |        |           |        |        |              |        |        |               |        |        |           |        |
| Total revenue                                           |   | $      | 20,837                       |   | $      | 19,390                        |   | $      | 25,304         |   | $      | 4,276     |   | $      | 6,637        |   | $      | 2,251         |   | $      | 78,695    |   |
| Property operating expenses                             |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|      and real estate taxes     |   |   | 6,999                        |   |   | 8,278                         |   |   | 9,848          |   |   | 1,520     |   |   | 2,851        |   |   | 42            |   |   | 29,538    |   |
|                                                    |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| Net operating income                                    |   | $      | 13,838                       |   | $      | 11,112                        |   | $      | 15,456         |   | $      | 2,756     |   | $      | 3,786        |   | $      | 2,209         |   | $      | 49,157    |   |
|                                                    |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |

Segment information for the nine-month periods ended September 30, 2005 and 2004 is as follows (in thousands):

| ** **                                          |   |   | **Pennsylvania – West** |   |   | **Pennsylvania – North** |   |   | **New Jersey** |   |   | **Urban** |   |   | **Virginia** |   |   | **Corporate** |   |   | **Total** |   |
|-----------------------------------------------------|--------|--------|------------------------------|--------|--------|-------------------------------|--------|--------|----------------|--------|--------|-----------|--------|--------|--------------|--------|--------|---------------|--------|--------|-----------|--------|
|                                                |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| For the nine-months ended September 30, 2005:       |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|                                                     |   |   |                         |        |        |                               |        |        |                |        |        |           |        |        |              |        |        |               |        |        |           |        |
| Total revenue                                       |   | $      | 82,340                       |   | $      | 57,864                        |   | $      | 74,724         |   | $      | 48,814    |   | $      | 21,653       |   | $      | 4,371         |   | $      | 289,766   |   |
| Property operating expenses                         |   |   |                              |   |   |                               |   |   |                |   |   |           |   |   |              |   |   |               |   |   |           |   |
|      and real estate taxes |   |   | 28,396                       |   |   | 26,404                        |   |   | 30,726         |   |   | 19,584    |   |   | 8,515        |   |   | 148           |   |   | 113,773   |   |
|                                                |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| Net operating income                                |   | $      | 53,944                       |   | $      | 31,460                        |   | $      | 43,998         |   | $      | 29,230    |   | $      | 13,138       |   | $      | 4,223         |   | $      | 175,993   |   |
|                                                |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| For the nine-months ended September 30, 2004:       |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|                                                     |   |   |                         |        |        |                               |        |        |                |        |        |           |        |        |              |        |        |               |        |        |           |        |
| Total revenue                                       |   | $      | 60,458                       |   | $      | 56,910                        |   | $      | 73,799         |   | $      | 10,895    |   | $      | 20,028       |   | $      | 6,018         |   | $      | 228,108   |   |
| Property operating expenses                         |   |   |                         |   |   |                          |   |   |           |   |   |      |   |   |         |   |   |          |   |   |      |   |
|      and real estate taxes |   |   | 19,793                       |   |   | 24,844                        |   |   | 27,847         |   |   | 4,265     |   |   | 8,423        |   |   | 297           |   |   | 85,469    |   |
|                                                |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |
| Net operating income                                |   | $      | 40,665                       |   | $      | 32,066                        |   | $      | 45,952         |   | $      | 6,630     |   | $      | 11,605       |   | $      | 5,721         |   | $      | 142,639   |   |
|                                                |   |        |                              |   |        |                               |   |        |                |   |        |           |   |        |              |   |        |               |   |        |           |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

Net operating income is defined as total revenue less property operating expenses and real estate taxes.  Below is a reconciliation of consolidated net operating income to net income (in thousands):

|                                |   |   | ** **                                    |   | **Three-month periods** |   |   | **Nine-month period**   |   |
|-------------------------------------|--------|--------|-----------------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                |   |   | ** **                                    |   | **ended September 30,** |   |   | **ended September 30,** |   |
|                                |   |   |                                          |        |                    |        |   |
|                                |   |   | ** **                                    |   | **2005**                |   |   | **2004**                |   |   | **2005** |   |   | **2004** |   |
|                                |   |   |                                          |        |                         |   |        |                         |   |  |  |   |  |  |   |
| Consolidated net operating income   | $      | 58,834 |                                          | $      | 49,157                  |   | $      | 175,993                 |   | $ | 142,639 |   |
| Less:                               |   |   |                                          |   |                    |   |   |                    |   |   |   |   |
|                                |   |   | Interest income                               |   | 707                     |   |   | 763                     |   |   | 2,174 |   |   | 1,815 |   |
|                                |   |   | Interest expense                              |   | (17,762                 | )      |   | (11,474                 | )      |   | (53,366 | ) |   | (35,526 | ) |
|                                |   |   | Depreciation and amortization                 |   | (28,535                 | )      |   | (18,280                 | )      |   | (84,790 | ) |   | (50,913 | ) |
|                                |   |   | Administrative expenses                       |   | (4,486                  | )      |   | (3,534                  | )      |   | (13,616 | ) |   | (10,977 | ) |
|                                |   |   | Minority interest attributable to continuing  |   |                    |   |   |                    |   |   |   |   |   |   |   |
|                                |   |   |      operations      |   | (41                     | )      |   | 346                     |   |   | (213 | ) |   | 324 |   |
| Plus:                               |   |   |                                          |   |                    |   |   |                    |   |   |   |   |
|                                |   |   | Equity in income of real estate ventures      |   | 745                     |   |   | 665                     |   |   | 2,296 |   |   | 1,573 |   |
|                                |   |   | Net gain on sales of interests in real estate |   | 4,640                   |   |   | 1,753                   |   |   | 4,640 |   |   | 2,901 |   |
|                                |   |   |                                          |        |                         |   |        |                         |   |  |  |   |  |  |   |
| Income from continuing operations   |   | 14,102 |                                          |   | 19,396                  |   |   | 33,118                  |   |   | 51,836 |   |
| Income from discontinued operations |   | 2,177  |                                          |   | 2,459                   |   |   | 2,037                   |   |   | 2,494 |   |
|                                |   |   |                                          |        |                         |   |        |                         |   |  |  |   |  |  |   |
| Net income                          | $      | 16,279 |                                          | $      | 21,855                  |   | $      | 35,155                  |   | $ | 54,330 |   |
|                                |   |   |                                          |        |                         |   |        |                         |   |  |  |   |  |  |   |
|                                |   |   |                                          |   |                    |   |   |                    |   |   |   |   |   |   |   |

| 14. | COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------|

*Legal Proceedings*

The Partnership is involved from time to time in litigation on various matters, including disputes with tenants and disputes arising out of agreements to purchase or sell properties.  Given the nature of the Partnership’s business activities, these lawsuits are considered routine to the conduct of its business.  The result of any particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system.

*Environmental*

As an owner of real estate, the Partnership is subject to various environmental laws of federal, state, and local governments.  The Partnership’s compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Partnership does not believe it will have a material adverse effect in the future.  However, the Partnership cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current Properties or on properties that the Partnership may acquire.

*Related Party Transaction*

We are a party to an agreement with one of our Trustees (Donald E. Axinn) in which we agreed to fund $5.5 million in September 2010 to acquire a fifty percent interest in an approximately 141,725 square foot office building located at 101 Paragon Drive, Montvale, New Jersey.  Our agreement provides for proceeds of our $5.5 million payment to be used (together with funds provided by Mr. Axinn) to repay in full the third party loan that encumbers this property.

*Ground Rent*

Future minimum rental payments under the terms of all non-cancelable ground leases under which the Partnership is the lessee are expensed on a straight-line basis regardless of when payments are due.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

*Other Commitments or Contingencies*

As part of our TRC acquisition, the Partnership agreed to issue to the sellers up to a maximum of $9.7 million of Class A Units of the Partnership if certain of the acquired properties achieve at least 95% occupancy prior to September 21, 2007.  At September 30, 2005, the maximum amount payable under this arrangement was $5.7 million.

As part of the TRC acquisition, the Partnership acquired an interest in Two Logan Square, a 696,477 square foot office building in Philadelphia, Pennsylvania, primarily through a second and third mortgage secured by this property pursuant to which the Partnership receives substantially all cash flows from the property.  The Partnership currently does not expect to take title to Two Logan Square until, at the earliest, September 2019.  In the event that the Partnership takes title to Two Logan Square upon a foreclosure of its mortgages, the Partnership has agreed to make a payment to an unaffiliated third party with a residual interest as a fee owner of this property.  The amount of the payment would be $0.6 million if we must pay a state andlocal transfer tax upon taking title, or $2.9 million if no transfer tax is payable upon the transfer.

As part of the TRC acquisition and several of our other acquisitions, the Partnership has agreed not to sell the acquired properties.  In the case of TRC, the Partnership agreed not to sell the acquired properties for periods ranging from three to 15 years from the acquisition date as follows: 201 Radnor Financial Center, 555 Radnor Financial Center and 300 Delaware Avenue (three years); One Rodney Square and 130/150/170 Radnor Financial Center (10 years); and One Logan Square, Two Logan Square and Radnor Corporate Center (15 years).  The Partnership also owns 14 other properties that aggregate 1.0 million square feet and have agreed not to sell these properties for periods that expire through 2008.  These agreements generally provide that we maydispose of the subject Properties only in transactions that qualify as tax-free exchanges under Section 1031 of the Code or in other tax deferred transactions.  In the event that the Partnership sells any of the properties within the applicable restricted period in non-exempt transactions, the Partnership has agreed to pay significant tax liabilities that would be incurred by the parties who sold the applicable property

The Partnership invests in its Properties and regularly incurs capital expenditures in the ordinary course of business to maintain the Properties.  The Partnership believes that such expenditures enhance the competitiveness of the Properties.  The Partnership also enters into construction, utility and service contracts in the ordinary course of business which may extend beyond one year.  These contracts include terms that provide for cancellation with insignificant or no cancellation penalties.

15.  CONDENSED CONSOLIDATING INFORMATION

During 2004, the Company and the Partnership filed a Registration Statement on Form S-3 (the “Registration Statement”) with the Securities and Exchange Commission to register (i) common shares of beneficial interest, preferred shares of beneficial interest, depository shares and warrants of the Company; (ii) debt securities of the Partnership (“Debt Securities”); and (iii) full and unconditional guaranties of the Debt Securities by the Company and certain wholly-owned subsidiaries of the Partnership (the “Subsidiary Guarantors”).  The Partnership has other subsidiaries (“Non-Guarantor Subsidiaries”) that are not Subsidiary Guarantors.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

The following summarizes the condensed consolidating financial information for the Partnership as of September 30, 2005 and December 31, 2004 and for the three- and nine-month periods ended September 30, 2005 and 2004:

| **CONSOLIDATING BALANCE SHEET**               |   |
|-----------------------------------------------|--------|
| **SEPTEMBER 30, 2005**                        |   |
| **(in 000’s)**                           |   |
| **      **      |   | **The** |   |   | **Guarantor** |   |   | **Non-Guarantor** |   |   | ** ** |   |   | ** ** |   |
| **      **      |   | **Partnership** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                          |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **ASSETS**                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total real estate investments, net            | $      | 935,241 |   | $ | 980,078 |   | $ | 606,459 |   | $ | — |   | $ | 2,521,778 |   |
| Cash and cash equivalents                     |   | 23,340 |   |   | — |   |   | — |   |   | — |   |   | 23,340 |   |
| Escrowed cash                                 |   | 5,746 |   |   | 1,612 |   |   | 8,816 |   |   | — |   |   | 16,174 |   |
| Accounts receivable, net                      |   | 25,573 |   |   | 14,325 |   |   | 11,034 |   |   | — |   |   | 50,932 |   |
| Investment in real estate ventures, at equity |   | 13,335 |   |   | — |   |   | — |   |   | — |   |   | 13,335 |   |
| Investments in Subsidiaries, at equity        |   | 1,392,746 |   |   | — |   |   | — |   |   | (1,392,746 | ) |   | — |   |
| Deferred costs, net                           |   | 26,233 |   |   | 4,635 |   |   | 3,756 |   |   | — |   |   | 34,624 |   |
| Intangible assets, net                        |   | 3,386 |   |   | 54,547 |   |   | 23,342 |   |   | — |   |   | 81,275 |   |
| Other assets                                  |   | 26,592 |   |   | 22,230 |   |   | 3,635 |   |   | — |   |   | 52,457 |   |
|                 |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                          |   |   | Total assets | $ | 2,452,192 |   | $ | 1,077,427 |   | $ | 657,042 |   | $ | (1,392,746 | ) | $ | 2,793,915 |   |
|                 |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **LIABILITIES AND PARTNERS’ EQUITY**     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage notes payable                        | $      | 230,601 |   | $ | 12,763 |   | $ | 261,305 |   | $ | — |   | $ | 504,669 |   |
| Unsecured notes                               |   | 636,582 |   |   | — |   |   | — |   |   | — |   |   | 636,582 |   |
| Unsecured credit facility                     |   | 340,000 |   |   | — |   |   | — |   |   | — |   |   | 340,000 |   |
| Accounts payable and accrued expenses         |   | 37,542 |   |   | 18,373 |   |   | 4,379 |   |   | — |   |   | 60,294 |   |
| Distributions payable                         |   | 27,712 |   |   | — |   |   | — |   |   | — |   |   | 27,712 |   |
| Tenant security deposits and deferred rents   |   | 15,256 |   |   | 2,491 |   |   | 3,874 |   |   | — |   |   | 21,621 |   |
| Acquired below market leases, net             |   | 486 |   |   | 27,795 |   |   | 7,732 |   |   | — |   |   | 36,013 |   |
| Other liabilities                             |   | 568 |   |   | 2,300 |   |   | 711 |   |   | — |   |   | 3,579 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                          |   |   | Total liabilities |   | 1,288,747 |   |   | 63,722 |   |   | 278,001 |   |   | — |   |   | 1,630,470 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redeemable limited partnership units          |   | 60,478 |   |   | — |   |   | — |   |   | — |   |   | 60,478 |   |
| Total partners’ equity                   |   | 1,102,967 |   |   | 1,013,705 |   |   | 379,041 |   |   | (1,392,746 | ) |   | 1,102,967 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                          |   |   | Total liabilities and partners’ equity | $ | 2,452,192 |   | $ | 1,077,427 |   | $ | 657,042 |   | $ | (1,392,746 | ) | $ | 2,793,915 |   |
|                                          |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING BALANCE SHEET**               |   |
|-----------------------------------------------|--------|
| **DECEMBER 31,      2004**                    |   |
| **(in 000’s)**                           |   |
| **      **      |   | **The** |   |   | **Guarantor** |   |   | **Non-Guarantor** |   |   | ** ** |   |   | ** ** |   |
| **      **      |   | **Partnership** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                          |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **ASSETS**                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total real estate investments, net            | $      | 912,228 |   | $ | 892,860 |   | $ | 558,777 |   | $ | — |   | $ | 2,363,865 |   |
| Cash and cash equivalents                     |   | 15,346 |   |   | — |   |   | — |   |   | — |   |   | 15,346 |   |
| Escrowed cash                                 |   | 6,501 |   |   | 1,751 |   |   | 9,728 |   |   | — |   |   | 17,980 |   |
| Accounts receivable, net                      |   | 21,911 |   |   | 13,132 |   |   | 9,597 |   |   | — |   |   | 44,640 |   |
| Marketable securities                         |   | 423 |   |   | — |   |   | — |   |   | — |   |   | 423 |   |
| Investment in real estate ventures, at equity |   | 12,754 |   |   | — |   |   | — |   |   | — |   |   | 12,754 |   |
| Investments in Subsidiaries, at equity        |   | 1,259,824 |   |   | — |   |   | — |   |   | (1,259,824 | ) |   | — |   |
| Deferred costs, net                           |   | 27,170 |   |   | 3,446 |   |   | 3,833 |   |   | — |   |   | 34,449 |   |
| Intangible assets, net                        |   | 4,720 |   |   | 71,918 |   |   | 24,418 |   |   | — |   |   | 101,056 |   |
| Other assets                                  |   | 21,993 |   |   | 19,877 |   |   | 1,601 |   |   | — |   |   | 43,471 |   |
|                 |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                          |   |   | Total assets | $ | 2,282,870 |   | $ | 1,002,984 |   | $ | 607,954 |   | $ | (1,259,824 | ) | $ | 2,633,984 |   |
|                 |        |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **LIABILITIES AND PARTNERS’ EQUITY**     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage notes payable                        | $      | 233,599 |   | $ | 13,443 |   | $ | 271,192 |   | $ | — |   | $ | 518,234 |   |
| Unsecured notes                               |   | 636,435 |   |   | — |   |   | — |   |   | — |   |   | 636,435 |   |
| Unsecured credit facility                     |   | 152,000 |   |   | — |   |   | — |   |   | — |   |   | 152,000 |   |
| Accounts payable and accrued expenses         |   | 31,290 |   |   | 13,952 |   |   | 4,001 |   |   | — |   |   | 49,243 |   |
| Distributions payable                         |   | 27,363 |   |   | — |   |   | — |   |   | — |   |   | 27,363 |   |
| Tenant security deposits and deferred rents   |   | 10,794 |   |   | 5,199 |   |   | 4,053 |   |   | — |   |   | 20,046 |   |
| Acquired below market leases, net             |   | 706 |   |   | 30,905 |   |   | 7,660 |   |   | — |   |   | 39,271 |   |
| Other liabilities                             |   | 633 |   |   | — |   |   | 709 |   |   | — |   |   | 1,342 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                          |   |   | Total liabilities |   | 1,092,820 |   |   | 63,499 |   |   | 287,615 |   |   | — |   |   | 1,443,934 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Redeemable limited partnership units          |   | 60,586 |   |   | — |   |   | — |   |   | — |   |   | 60,586 |   |
| Total partners’ equity                   |   | 1,129,464 |   |   | 939,485 |   |   | 320,339 |   |   | (1,259,824 | ) |   | 1,129,464 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                          |   |   | Total liabilities and partners’ equity | $ | 2,282,870 |   | $ | 1,002,984 |   | $ | 607,954 |   | $ | (1,259,824 | ) | $ | 2,633,984 |   |
|                                          |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING STATEMENT OF OPERATIONS**        |
|-------------------------------------------------------|
| **THREE MONTH PERIOD ENDED SEPTEMBER 30, 2005**  |
| **(in 000’s)**                              |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   | **The** |   |   | **Guarantor** |   |   | **Non-Guarantor** |   |   |   |   |   |   |   |   |
|                                                  |   |   |   |   |   |   |   | **Partnership** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| **Revenue:**                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Rents | $ | 37,237 |   | $ | 24,580 |   | $ | 19,531 |   | $ | — |   | $ | 81,348 |   |   |
|                                                  |   |   | Tenant reimbursements |   | 4,755 |   |   | 5,042 |   |   | 2,006 |   |   | — |   |   | 11,803 |   |   |
|                                                  |   |   | Other |   | 3,911 |   |   | 754 |   |   | 372 |   |   | (2,410 | ) |   | 2,627 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
|                                                  |   |   |   |   |   | Total revenue |   | 45,903 |   |   | 30,376 |   |   | 21,909 |   |   | (2,410 | ) |   | 95,778 |   |   |
|                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating Expenses:**                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Property operating expenses |   | 12,523 |   |   | 10,201 |   |   | 6,764 |   |   | (2,410 | ) |   | 27,078 |   |   |
|                                                  |   |   | Real estate taxes |   | 4,258 |   |   | 3,457 |   |   | 2,151 |   |   | — |   |   | 9,866 |   |   |
|                                                  |   |   | Depreciation and amortization |   | 10,976 |   |   | 10,964 |   |   | 6,595 |   |   | — |   |   | 28,535 |   |   |
|                                                  |   |   | Administrative expenses |   | 4,484 |   |   | 1 |   |   | 1 |   |   | — |   |   | 4,486 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
|                                                  |   |   |   |   |   | Total operating expenses |   | 32,241 |   |   | 24,623 |   |   | 15,511 |   |   | (2,410 | ) |   | 69,965 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| **Operating income**                                  |   | 13,662 |   |   | 5,753 |   |   | 6,398 |   |   | — |   |   | 25,813 |   |   |
| **Other Income (Expense):**                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Interest income |   | 287 |   |   | 403 |   |   | 17 |   |   | — |   |   | 707 |   |   |
|                                                  |   |   | Interest expense |   | (13,291 | ) |   | 64 |   |   | (4,535 | ) |   | — |   |   | (17,762 | ) |   |
|                                                  |   |   | Equity in income of real estate ventures |   | 745 |   |   | — |   |   | — |   |   | — |   |   | 745 |   |   |
|                                                  |   |   | Equity in income of subsidiaries |   | 10,277 |   |   | — |   |   | — |   |   | (10,277 | ) |   | — |   |   |
|                                                  |   |   | Net gains on sales of  real estate |   | 4,640 |   |   | — |   |   | — |   |   | — |   |   | 4,640 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| Income before minority interest                       |   | 16,320 |   |   | 6,220 |   |   | 1,880 |   |   | (10,277 | ) |   | 14,143 |   |   |
| Minority interest                                     |   | (41 | ) |   | — |   |   | — |   |   | — |   |   | (41 | ) |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| Income from continuing operations                     |   | 16,279 |   |   | 6,220 |   |   | 1,880 |   |   | (10,277 | ) |   | 14,102 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| Discontinued operations:                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   |   | Loss from    discontinued operations |   | — |   |   | — |   |   | (19 | ) |   | — |   |   | (19 | ) |   |
|                                                  |   |   | Gain on Disposition |   | — |   |   | — |   |   | 2,196 |   |   | — |   |   | 2,196 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| Income from discontinued operations                   |   | — |   |   | — |   |   | 2,177 |   |   | — |   |   | 2,177 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |
| Net income                                            | $ | 16,279 |   | $ | 6,220 |   | $ | 4,057 |   | $ | (10,277 | ) | $ | 16,279 |   |   |
|                                                  |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |   |

25

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING STATEMENT OF OPERATIONS**       |
|------------------------------------------------------|
| **NINE MONTH PERIOD ENDED SEPTEMBER 30, 2005**  |
| **(in 000’s)**                             |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   | **The** |   |   | **Guarantor** |   |   | **Non-Guarantor** |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   | **Partnership** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Revenue:**                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   | Rents | $ | 111,432 |   | $ | 72,515 |   | $ | 60,285 |   | $ | — |   | $ | 244,232 |   |
|                                                 |   |   | Tenant reimbursements |   | 13,326 |   |   | 15,212 |   |   | 6,384 |   |   | — |   |   | 34,922 |   |
|                                                 |   |   | Other |   | 15,461 |   |   | 1,479 |   |   | 1,119 |   |   | (7,447 | ) |   | 10,612 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                 |   |   |   |   |   | Total revenue |   | 140,219 |   |   | 89,206 |   |   | 67,788 |   |   | (7,447 | ) |   | 289,766 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating Expenses:**                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   | Property operating expenses |   | 40,043 |   |   | 31,425 |   |   | 20,631 |   |   | (7,447 | ) |   | 84,652 |   |
|                                                 |   |   | Real estate taxes |   | 12,282 |   |   | 10,591 |   |   | 6,248 |   |   | — |   |   | 29,121 |   |
|                                                 |   |   | Depreciation and amortization |   | 32,891 |   |   | 32,504 |   |   | 19,395 |   |   | — |   |   | 84,790 |   |
|                                                 |   |   | Administrative expenses |   | 13,612 |   |   | 1 |   |   | 3 |   |   | — |   |   | 13,616 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                 |   |   |   |   |   | Total operating expenses |   | 98,828 |   |   | 74,521 |   |   | 46,277 |   |   | (7,447 | ) |   | 212,179 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Operating income**                                 |   | 41,391 |   |   | 14,685 |   |   | 21,511 |   |   | — |   |   | 77,587 |   |
| **Other Income (Expense):**                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   | Interest income |   | 742 |   |   | 1,390 |   |   | 42 |   |   | — |   |   | 2,174 |   |
|                                                 |   |   | Interest expense |   | (39,371 | ) |   | (459 | ) |   | (13,536 | ) |   | — |   |   | (53,366 | ) |
|                                                 |   |   | Equity in income of real estate ventures |   | 2,296 |   |   | — |   |   | — |   |   | — |   |   | 2,296 |   |
|                                                 |   |   | Equity in income of subsidiaries |   | 25,670 |   |   | — |   |   | — |   |   | (25,670 | ) |   | — |   |
|                                                 |   |   | Net gains on sales of  real estate |   | 4,640 |   |   | — |   |   | — |   |   | — |   |   | 4,640 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income before minority interest                      |   | 35,368 |   |   | 15,616 |   |   | 8,017 |   |   | (25,670 | ) |   | 33,331 |   |
| Minority interest                                    |   | (213 | ) |   | — |   |   | — |   |   | — |   |   | (213 | ) |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income from continuing operations                    |   | 35,155 |   |   | 15,616 |   |   | 8,017 |   |   | (25,670 | ) |   | 33,118 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Discontinued operations:                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   | Loss from discontinued    operations |   | — |   |   | — |   |   | (159 | ) |   | — |   |   | (159 | ) |
|                                                 |   |   | Gain on Disposition |   | — |   |   | — |   |   | 2,196 |   |   | — |   |   | 2,196 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income from discontinued operations                  |   | — |   |   | — |   |   | 2,037 |   |   | — |   |   | 2,037 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Net income                                           | $ | 35,155 |   | $ | 15,616 |   | $ | 10,054 |   | $ | (25,670 | ) | $ | 35,155 |   |
|                                                 |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

26

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING STATEMENT OF CASH FLOWS**            |
|------------------------------------------------------|
| **NINE MONTH PERIOD ENDED SEPTEMBER 30, 2005**       |
| **(in 000’s)**                                  |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **The Partnership** |   |   | **Guarantor Subsidiaries** |   |   | **Non-Guarantor Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Cash flows from operating activities**             |   |   |  |   | $ | 68,212 |   | $ | 99,101 |   | $ | 69,672 |   | $ | (133,219 | ) | $ | 103,766 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Cash flows from investing activities**             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                      |   |   |  |   |   | Acquisition of properties |   |   |  |   |   | (18,063 | ) |   | (8,225 | ) |   | (66,386 | ) |   | — |   |   | (92,674 | ) |
|                                                      |   |   |  |   |   | Sale of properties, net |   |   |  |   |   | 10,825 |   |   | — |   |   | 18,603 |   |   | — |   |   | 29,428 |   |
|                                                      |   |   |  |   |   | Capital expenditures |   |   |  |   |   | (36,573 | ) |   | (88,328 | ) |   | (11,900 | ) |   | — |   |   | (136,801 | ) |
|                                                      |   |   |  |   |   | Investment in unconsolidated Real Estate     Ventures |   |   |  |   |   | (258 | ) |   | — |   |   | — |   |   | — |   |   | (258 | ) |
|                                                      |   |   |  |   |   | Escrowed cash |   |   |  |   |   | 755 |   |   | 139 |   |   | 912 |   |   | — |   |   | 1,806 |   |
|                                                      |   |   |  |   |   | Investment in marketable securities |   |   |  |   |   | 404 |   |   | — |   |   | — |   |   | — |   |   | 404 |   |
|                                                      |   |   |  |   |   | Cash distributions from unconsolidated     Real Estate Ventures in excess of equity    income |   |   |  |   |   | 390 |   |   | — |   |   | — |   |   | — |   |   | 390 |   |
|                                                      |   |   |  |   |   | Leasing costs |   |   |  |   |   | (5,424 | ) |   | (2,007 | ) |   | (1,014 | ) |   | — |   |   | (8,445 | ) |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                      |   |   |  |   |   | Net cash flow from investing activities |   |   |  |   |   | (47,944 | ) |   | (98,421 | ) |   | (59,785 | ) |   | — |   |   | (206,150 | ) |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Cash flows from financing activities**             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                      |   |   |  |   |   | Proceeds from Credit Facilities |   |   |  |   |   | 250,000 |   |   | — |   |   | — |   |   | — |   |   | 250,000 |   |
|                                                      |   |   |  |   |   | Repayments of Credit Facilities |   |   |  |   |   | (62,000 | ) |   | — |   |   | — |   |   | — |   |   | (62,000 | ) |
|                                                      |   |   |  |   |   | Repayments of mortgage notes payable |   |   |  |   |   | (2,998 | ) |   | (680 | ) |   | (9,887 | ) |   | — |   |   | (13,565 | ) |
|                                                      |   |   |  |   |   | Repayments of employee stock loans |   |   |  |   |   | 50 |   |   | — |   |   | — |   |   | — |   |   | 50 |   |
|                                                      |   |   |  |   |   | Payments of deferred financing costs |   |   |  |   |   | (234 | ) |   | — |   |   | — |   |   | — |   |   | (234 | ) |
|                                                      |   |   |  |   |   | Exercise of stock options |   |   |  |   |   | 19,283 |   |   | — |   |   | — |   |   | — |   |   | 19,283 |   |
|                                                      |   |   |  |   |   | Distributions to preferred and common     partnership units |   |   |  |   |   | (79,752 | ) |   | — |   |   | — |   |   | — |   |   | (79,752 | ) |
|                                                      |   |   |  |   |   | Repurchase of preferred and common     partnership unitholders |   |   | (240 | ) |   | — |   |   | — |   |   | — |   |   | (240 | ) |
|                                                      |   |   |  |   |   | Distributions to minority interest holders |   |   |  |   |   | (3,164 | ) |   | — |   |   | — |   |   | — |   |   | (3,164 | ) |
|                                                      |   |   |  |   |   | Intercompany fundings and other, net |   |   |  |   |   | (133,219 | ) |   | — |   |   | — |   |   | 133,219 |   |   | — |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                      |   |   |  |   |   | Net cash flow from financing activities |   |   |  |   |   | (12,274 | ) |   | (680 | ) |   | (9,887 | ) |   | 133,219 |   |   | 110,378 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Increase  in cash and cash equivalents**           |   |   |  |   |   | 7,994 |   |   | — |   |   | — |   |   | — |   |   | 7,994 |   |
| **Cash and cash equivalents at beginning of period** |   |   |  |   |   | 15,346 |   |   | — |   |   | — |   |   | — |   |   | 15,346 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Cash and cash equivalents at end of period**       |   |   |  |   | $ | 23,340 |   | $ | — |   | $ | — |   | $ | — |   | $ | 23,340 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING STATEMENT OF OPERATIONS**       |
|-------------------------------------------------|
| **THREE MONTH PERIOD ENDED SEPTEMBER 30, 2004** |
| **(in 000’s)**                             |
|                                            |
|                                            |   |   |   |   |   |   |   |   | **The** |   |   | **Guarantor** |   |   | **Non-Guarantor** |   |   |   |   |   |   |   |
|                                            |   |   |   |   |   |   |   |   | **Partnership** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Revenue:**                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   | Rents |   | $ | 38,796 |   | $ | 12,993 |   | $ | 14,739 |   | $ | — |   | $ | 66,528 |   |
|                                            |   |   | Tenant reimbursements |   |   | 4,985 |   |   | 2,780 |   |   | 1,847 |   |   | — |   |   | 9,612 |   |
|                                            |   |   | Other |   |   | 3,917 |   |   | 124 |   |   | 50 |   |   | (1,536 | ) |   | 2,555 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                            |   |   |   |   |   | Total revenue |   |   | 47,698 |   |   | 15,897 |   |   | 16,636 |   |   | (1,536 | ) |   | 78,695 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating Expenses:**                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   | Property operating expenses |   |   | 12,775 |   |   | 5,052 |   |   | 5,599 |   |   | (1,536 | ) |   | 21,890 |   |
|                                            |   |   | Real estate taxes |   |   | 4,309 |   |   | 1,754 |   |   | 1,585 |   |   | — |   |   | 7,648 |   |
|                                            |   |   | Depreciation and amortization |   |   | 10,261 |   |   | 3,828 |   |   | 4,191 |   |   | — |   |   | 18,280 |   |
|                                            |   |   | Administrative expenses |   |   | 3,534 |   |   | — |   |   | — |   |   | — |   |   | 3,534 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                            |   |   |   |   |   | Total operating expenses |   |   | 30,879 |   |   | 10,634 |   |   | 11,375 |   |   | (1,536 | ) |   | 51,352 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Operating income**                            |   |   | 16,819 |   |   | 5,263 |   |   | 5,261 |   |   | — |   |   | 27,343 |   |
| **Other Income (Expense):**                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   | Interest income |   |   | 346 |   |   | 408 |   |   | 9 |   |   | — |   |   | 763 |   |
|                                            |   |   | Interest expense |   |   | (7,609 | ) |   | (274 | ) |   | (3,591 | ) |   | — |   |   | (11,474 | ) |
|                                            |   |   | Equity in income of real estate ventures |   |   | 665 |   |   | — |   |   | — |   |   | — |   |   | 665 |   |
|                                            |   |   | Equity in income of subsidiaries |   |   | 7,255 |   |   | — |   |   | — |   |   | (7,255 | ) |   | — |   |
|                                            |   |   | Net gains on sales of  real estate |   |   | 1,574 |   |   | — |   |   | 179 |   |   | — |   |   | 1,753 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income before minority interest                 |   |   | 19,050 |   |   | 5,397 |   |   | 1,858 |   |   | (7,255 | ) |   | 19,050 |   |
| Minority interest                               |   |   | 346 |   |   | — |   |   | — |   |   |  |   |   | 346 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Loss from continuing operations                 |   |   | 19,396 |   |   | 5,397 |   |   | 1,858 |   |   | (7,255 | ) |   | 19,396 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations:                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   |   | Income from    discontinued operations |   |   | (27 | ) |   | — |   |   | — |   |   | — |   |   | (27 | ) |
|                                            |   |   | Gain on Disposition |   |   | 2,486 |   |   | — |   |   | — |   |   | — |   |   | 2,486 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income from discontinued operations             |   |   | 2,459 |   |   | — |   |   | — |   |   | — |   |   | 2,459 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Net income                                      |   | $ | 21,855 |   | $ | 5,397 |   | $ | 1,858 |   | $ | (7,255 | ) | $ | 21,855 |   |
|                                            |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING STATEMENT OF OPERATIONS**      |
|------------------------------------------------|
| **NINE MONTH PERIOD ENDED SEPTEMBER 30, 2004** |
| **(in 000’s)**                            |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   | **The** |   |   | **Guarantor** |   |   | **Non-Guarantor** |   |   |   |   |   |   |   |
|                                           |   |   |   |   |   |   |   |   | **Partnership** |   |   | **Subsidiaries** |   |   | **Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Revenue:**                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   | Rents |   | $ | 111,993 |   | $ | 38,327 |   | $ | 44,204 |   | $ | — |   | $ | 194,524 |   |
|                                           |   |   | Tenant reimbursements |   |   | 12,255 |   |   | 7,995 |   |   | 5,413 |   |   | — |   |   | 25,663 |   |
|                                           |   |   | Other |   |   | 11,120 |   |   | 290 |   |   | 1,143 |   |   | (4,632 | ) |   | 7,921 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                           |   |   |   |   |   | Total revenue |   |   | 135,368 |   |   | 46,612 |   |   | 50,760 |   |   | (4,632 | ) |   | 228,108 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating Expenses:**                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   | Property operating expenses |   |   | 37,324 |   |   | 15,289 |   |   | 16,113 |   |   | (4,632 | ) |   | 64,094 |   |
|                                           |   |   | Real estate taxes |   |   | 11,831 |   |   | 4,892 |   |   | 4,652 |   |   | — |   |   | 21,375 |   |
|                                           |   |   | Depreciation and amortization |   |   | 28,829 |   |   | 9,577 |   |   | 12,507 |   |   | — |   |   | 50,913 |   |
|                                           |   |   | Administrative expenses |   |   | 10,977 |   |   | — |   |   | — |   |   | — |   |   | 10,977 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                           |   |   |   |   |   | Total operating expenses |   |   | 88,961 |   |   | 29,758 |   |   | 33,272 |   |   | (4,632 | ) |   | 147,359 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Operating income**                           |   |   | 46,407 |   |   | 16,854 |   |   | 17,488 |   |   | — |   |   | 80,749 |   |
| **Other Income (Expense):**                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   | Interest income |   |   | 595 |   |   | 1,198 |   |   | 22 |   |   | — |   |   | 1,815 |   |
|                                           |   |   | Interest expense |   |   | (24,277 | ) |   | (791 | ) |   | (10,458 | ) |   | — |   |   | (35,526 | ) |
|                                           |   |   | Equity in income of real estate ventures |   |   | 1,573 |   |   | — |   |   | — |   |   | — |   |   | 1,573 |   |
|                                           |   |   | Equity in income of subsidiaries |   |   | 24,696 |   |   | — |   |   | — |   |   | (24,696 | ) |   | — |   |
|                                           |   |   | Net gains on sales of  real estate |   |   | 2,518 |   |   | 382 |   |   | 1 |   |   | — |   |   | 2,901 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income before minority interest                |   |   | 51,512 |   |   | 17,643 |   |   | 7,053 |   |   | (24,696 | ) |   | 51,512 |   |
| Minority interest                              |   |   | 324 |   |   | — |   |   | — |   |   | — |   |   | 324 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Loss from continuing operations                |   |   | 51,836 |   |   | 17,643 |   |   | 7,053 |   |   | (24,696 | ) |   | 51,836 |   |
|                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued operations:                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   |   | Income from discontinued operations |   |   | (241 | ) |   | — |   |   | — |   |   | — |   |   | (241 | ) |
|                                           |   |   | Gain on Disposition |   |   | 2,735 |   |   | — |   |   | — |   |   | — |   |   | 2,735 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Income from discontinued operations            |   |   | 2,494 |   |   | — |   |   | — |   |   | — |   |   | 2,494 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Net income                                     |   | $ | 54,330 |   | $ | 17,643 |   | $ | 7,053 |   | $ | (24,696 | ) | $ | 54,330 |   |
|                                           |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

| **CONSOLIDATING STATEMENT OF CASH FLOWS**            |
|------------------------------------------------------|
| **NINE MONTH PERIOD ENDED SEPTEMBER 30, 2004**       |
| **(in 000’s)**                                  |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | **The Partnership** |   |   | **Guarantor Subsidiaries** |   |   | **Non-Guarantor Subsidiaries** |   |   | **Eliminations** |   |   | **Consolidated** |   |
|                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Cash flows from operating activities**             |   |   |  |   | $ | 75,793 |   | $ | 562,676 |   | $ | 68,780 |   | $ | (606,539 | ) | $ | 100,710 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Cash flows from investing activities**             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                      |   |   |  |   |   | Proceeds from sale of properties |   |   |  |   |   | 553 |   |   | (512,441 | ) |   | (57,566 | ) |   | — |   |   | (569,454 | ) |
|                                                      |   |   |  |   |   | Capital expenditures |   |   |  |   |   | 18,217 |   |   | 2,493 |   |   | — |   |   | — |   |   | 20,710 |   |
|                                                      |   |   |  |   |   | Investment in unconsolidated Real Estate      Ventures |   |   |  |   |   | (20,195 | ) |   | (53,035 | ) |   | (5,961 | ) |   | — |   |   | (79,191 | ) |
|                                                      |   |   |  |   |   | Escrowed cash |   |   |  |   |   | (241 | ) |   | — |   |   | — |   |   | — |   |   | (241 | ) |
|                                                      |   |   |  |   |   | Cash distributions from unconsolidated      Real Estate Ventures |   |   |  |   |   | (1,897 | ) |   | 1,894 |   |   | (638 | ) |   | — |   |   | (641 | ) |
|                                                      |   |   |  |   |   |       in excess of equity income |   |   |  |   |   | 255 |   |   | — |   |   | — |   |   | — |   |   | 255 |   |
|                                                      |   |   |  |   |   | Leasing costs |   |   |  |   |   | (4,732 | ) |   | (996 | ) |   | (852 | ) |   | — |   |   | (6,580 | ) |
|                                                      |   |   |  |   |   | Increase in cash due to consolidation of      variable interest entities |   |   |  |   |   | 426 |   |   | — |   |   | — |   |   | — |   |   | 426 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                      |   |   |  |   |   | Net cash flow from investing activities |   |   |  |   |   | (7,614 | ) |   | (562,085 | ) |   | (65,017 | ) |   | — |   |   | (634,716 | ) |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Cash flows from financing activities**             |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
|                                                      |   |   |  |   |   | Proceeds from Credit Facilities |   |   |  |   |   | 540,000 |   |   | — |   |   | — |   |   | — |   |   | 540,000 |   |
|                                                      |   |   |  |   |   | Repayments of Credit Facilities |   |   |  |   |   | (523,000 | ) |   | — |   |   | — |   |   | — |   |   | (523,000 | ) |
|                                                      |   |   |  |   |   | Repayments of mortgage notes payable |   |   |  |   |   | (41,467 | ) |   | (591 | ) |   | (3,766 | ) |   | — |   |   | (45,824 | ) |
|                                                      |   |   |  |   |   | Proceeds from term loan borrowings |   |   |  |   |   | 433,000 |   |   | — |   |   | — |   |   | — |   |   | 433,000 |   |
|                                                      |   |   |  |   |   | Repayments of term loan borrowings |   |   |  |   |   | (100,000 | ) |   | — |   |   | — |   |   | — |   |   | (100,000 | ) |
|                                                      |   |   |  |   |   | Repayments of employee stock loans |   |   |  |   |   | 1,012 |   |   | — |   |   | — |   |   | — |   |   | 1,012 |   |
|                                                      |   |   |  |   |   | Payments of deferred financing costs |   |   |  |   |   | (3,791 | ) |   | — |   |   | 3 |   |   | — |   |   | (3,788 | ) |
|                                                      |   |   |  |   |   | Exercise of stock options |   |   |  |   |   | 4,868 |   |   | — |   |   | — |   |   | — |   |   | 4,868 |   |
|                                                      |   |   |  |   |   | Distributions to preferred and common      partnership units |   |   |  |   |   | (63,786 | ) |   | — |   |   | — |   |   | — |   |   | (63,786 | ) |
|                                                      |   |   |  |   |   | Proceeds from common partnership unit      issuance, net |   |   |  |   |   | 392,337 |   |   | — |   |   | — |   |   | — |   |   | 392,337 |   |
|                                                      |   |   |  |   |   | Minority partner contributions |   |   |  |   |   | 19 |   |   | — |   |   | — |   |   | — |   |   | 19 |   |
|                                                      |   |   |  |   |   | Repurchase of preferred and common      partnership unitholders |   |   |  |   |   | (95,436 | ) |   | — |   |   | — |   |   | — |   |   | (95,436 | ) |
|                                                      |   |   |  |   |   | Distributions to minority interest holders |   |   |  |   |   | (3,967 | ) |   | — |   |   | — |   |   | — |   |   | (3,967 | ) |
|                                                      |   |   |  |   |   | Distributions to outside joint venture      partners of consolidated variable      interest entities |   |   |  |   |   | (118 | ) |   | — |   |   | — |   |   | — |   |   | (118 | ) |
|                                                      |   |   |  |   |   | Intercompany fundings and other, net |   |   |  |   |   | (606,539 | ) |   | — |   |   | — |   |   | 606,539 |   |   | — |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                                                      |   |   |  |   |   | Net cash flow from financing activities |   |   |  |   |   | (66,868 | ) |   | (591 | ) |   | (3,763 | ) |   | 606,539 |   |   | 535,317 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Increase  in cash and cash equivalents**           |   |   |  |   |   | 1,311 |   |   | — |   |   | — |   |   | — |   |   | 1,311 |   |
| **Cash and cash equivalents at beginning of period** |   |   |  |   |   | 8,552 |   |   | — |   |   | — |   |   | — |   |   | 8,552 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |
| **Cash and cash equivalents at end of period**       |   |   |  |   | $ | 9,863 |   | $ | — |   | $ | — |   | $ | — |   | $ | 9,863 |   |
|                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |

16.  SUBSEQUENT EVENTS

On October 3, 2005, we, together with the Company, entered into an agreement and plan of merger (the “Merger Agreement”) that provides for our acquisition of Prentiss Properties Trust (“Prentiss”) and its operating subsidiary, Prentiss Properties Acquisition Partners, L.P. (“Prentiss OP”).  In the merger, each Prentiss common share (a “Prentiss Common Share”) will be converted into the right to receive 0.69 of a Brandywine common share (a “Brandywine Common Share”) and $21.50 in cash, subject to adjustment if a pre-closing cash dividend is paid as described below (the “Per Share Merger Consideration”).  Cash will be paid instead of fractional shares.  In the merger, each unitof a limited partnership interest in Prentiss OP (“Prentiss OP Units”) will, at the option of the holder, be converted into Prentiss Common Shares with the right to receive the Per Share Merger Consideration or 1.3799 of our Class A Units (“Brandywine Class A Units”), subject to adjustment if the pre-closing cash dividend described below is paid.  In addition, each series D preferred share of Prentiss outstanding at closing of the merger will be converted into one newly created Brandywine series E preferred share.

As part of the merger transaction, we and Prentiss have entered into separate agreements with The Prudential Insurance Company of America (“Prudential”) that provide for the acquisition by insurance company separate accounts or funds managed by Prudential (either on the day prior to, or the day of, the closing of the merger) of Prentiss properties that contain approximately 4.32 million net rentable square feet (“Prudential Properties”) for total consideration of approximately $747.7 million.  If the Prudential Properties are sold on the day prior to the closing of the merger, then the Prentiss Board would declare a cash dividend that would be payable to holders of Prentiss Common Shares of record on such date and the cashportion of the Per Share Merger Consideration would be reduced by the per share amount of such dividend.

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**BRANDYWINE OPERATING PARTNERSHIP, L.P.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSSEPTEMBER 30, 2005**

The total consideration payable in the merger (including the proceeds from the sale of the Prudential Properties described below and excluding transaction and severance expenses that will be incurred in connection with the merger) will be approximately $3.2 billion, consisting of $2.1 billion in cash and assumption of Prentiss debt and approximately 35.5 million Brandywine Common Shares.  

Completion of the merger is subject to a number of closing conditions, including approval of the merger by holders of Prentiss Common Shares and approval by holders of Brandywine Common Shares of the issuance of Brandywine Common Shares in the merger.

We have provided additional information about this transaction in our Current Report on Form 8-K that we filed with the SEC on October 4, 2005.

*Interest Rate Swaps*

In October 2005, the Partnership entered into forward starting swaps in anticipation of a long-term fixed rate financing transaction.  The forward starting swaps are for notional amounts totaling $125.0 million for an expiration of five years at a fixed rate of 4.9% and for notional amounts totaling $125.0 million for an expiration of ten years at a fixed rate of 5.1%.

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**Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations**

The following discussion and analysis should be read in conjunction with the financial statements and notes thereto appearing elsewhere herein.  This Form 10-Q contains forward-looking statements for purposes of the Securities Act of 1933 and the Securities Exchange Act of 1934 and as such may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Partnership to be materially different from results, performance or achievements expressed or implied by such forward-looking statements.  Although the Partnership believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that theseexpectations will be realized.  The Partnership assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.  Factors that could cause actual results to differ materially from management’s current expectations include, but are not limited to, changes in general economic conditions, changes in local real estate conditions (including changes in rental rates and the number of competing properties), changes in the economic conditions affecting industries in which the Partnership's principal tenants compete, the Partnership’s failure to lease unoccupied space in accordance with the Partnership’s projections, the failure of the Partnership to re-lease occupied space upon expiration of leases, the bankruptcy of majortenants, changes in prevailing interest rates, the unavailability of equity and debt financing, unanticipated costs associated with the acquisition and integration of the Partnership’s acquisitions (including the Partnership’s pending acquisition by merger of Prentiss), costs to complete and lease-up pending developments, increased costs for, or lack of availability of, adequate insurance, including for terrorist acts, demand for tenant services beyond those traditionally provided by landlords, potential liability under environmental or other laws, the existence of complex regulations relating to the Company’s status as a REIT and to the Partnership’s acquisition, disposition and development activities, the adverse consequences of the Company’s failureto qualify as a REIT and the other risks identified in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2004.

OVERVIEW

The Partnership currently manages its portfolio within five geographic segments: (1) Pennsylvania–West, (2) Pennsylvania–North, (3) New Jersey, (4) Urban and (5) Virginia.  The Partnership believes it has established an effective platform in these office and industrial markets that provides a foundation for achieving its goals of maximizing market penetration, optimizing operating economies of scale and creating long-term investment value.  

As of September 30, 2005, the Partnership’s portfolio consisted of 227 office properties, 23 industrial facilities and one mixed-use property that contained an aggregate of approximately 19.6 million net rentable square feet.  As of September 30, 2005, we held economic interests in nine unconsolidated real estate ventures that contained approximately 1.6 million net rentable square feet (the “Real Estate Ventures”) formed with third parties to develop or own commercial properties.  In addition, we own interests in two consolidated real estate ventures that own two office properties containing approximately 0.2 million net rentable square feet.

On October 3, 2005, we and the Company entered into a merger agreement with Prentiss, a Dallas, Texas-based REIT focused on office and industrial properties.  Under the merger agreement, we will acquire Prentiss and its subsidiaries for a combination of cash, debt assumption and common equity.  We currently expect the transaction to close in December or the first quarter of 2006.  Consummation of the transaction is subject to customary closing conditions and shareholders vote.

The Partnership receives income primarily from rental revenue (including tenant reimbursements) from the Properties and, to a lesser extent, from the management of properties owned by third parties and from investments in the Real Estate Ventures.  

The Partnership’s financial performance is dependent upon the demand for office and other commercial space in its markets.  Current economic conditions, including recessionary pressures and capital market volatility, have enhanced the challenges facing the Partnership.

The Partnership seeks revenue growth through an increase in occupancy of its portfolio (90.2% at September 30, 2005, 86.9% including the five lease-up assets acquired as part of the TRC acquisition in September 2004) and through acquisitions.  However, with a downturn in general leasing activity, owners of commercial real estate, including the Partnership, are experiencing longer periods of rental downtime and are incurring higher capital costs and leasing commissions to achieve targeted tenancies.  

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As the Partnership seeks to increase revenue, management also focuses on strategies to minimize operating risks, including (i) tenant rollover risk, (ii) tenant credit risk and (iii) development risk.

Tenant Rollover Risk:

The Partnership is subject to the risk that, upon expiration, leases may not be renewed, the space may not be re-leased, or the terms of renewal or re-leasing (including the cost of renovations) may be less favorable than the current lease terms.  Leases totaling approximately 2.8% of the net rentable square feet of the Properties as of September 30, 2005 expire without penalty through the end of 2005.  In addition, leases totaling approximately 11.3% of the net rentable square feet of the Properties as of September 30, 2005 are scheduled to expire without penalty in 2006.  The Partnership maintains an active dialogue with its tenants in an effort to achieve lease renewals.  The Partnership’s retention rate for leases that were scheduled toexpire in the nine-month period ended September 30, 2005 was 73.3%.  If the Partnership is unable to renew leases for a substantial portion of the space under expiring leases, or promptly re-lease this space at anticipated rental rates, the Partnership’s cash flow could be adversely impacted. 

Tenant Credit Risk:

In the event of a tenant default, the Partnership may experience delays in enforcing its rights as a landlord and may incur substantial costs in protecting its investment.  Management regularly evaluates its accounts receivable reserve policy in light of its tenant base and general and local economic conditions.  The accounts receivable allowances were $4.7 million or 8.5% of total receivables (including accrued rent receivable) as of September 30, 2005 compared to $4.1 million or 8.4% of total receivables (including accrued rent receivable) as of December 31, 2004. 

Development Risk:

As of September 30, 2005, the Partnership had in development two office properties and had in redevelopment three office properties aggregating 1.2 million square feet.  The total net investment in these projects is estimated to be $233.8 million of which $178.4 million had been incurred as of September 30, 2005.  As of September 30, 2005, these projects were approximately 67% leased.  One of these development properties is Cira Centre, a 29-story office tower located adjacent to Amtrak’s 30th Street Station in the University City District of Philadelphia.  The total net investment in this project is estimated to be $177.6 million and the Partnership expects to complete the project in the fourth quarter of 2005.  As of September30, 2005, the office portion of this project was approximately 93% leased with occupancy to occur over the next several quarters. While the Partnership is actively marketing space at these projects to prospective tenants, management cannot provide assurance as to the timing or terms of any leases for such space.  If one or more of the Partnership’s assumptions regarding the successful efforts of development and leasing are incorrect, the resulting adjustments could impact earnings.

ACQUISITIONS AND DISPOSITIONS OF REAL ESTATE INVESTMENTS

During the nine-month period ended September 30, 2005, the Partnership acquired one industrial property containing 385,884 net rentable square feet, two office properties containing 283,511 net rentable square feet and 36.4 acres of developable land for an aggregate purchase price of $94.5 million.  The Partnership sold one industrial property containing 385,884 net rentable square feet and three parcels of land containing 18.0 acres for an aggregate $30.2 million, realizing net gains totaling $6.8 million.

During the three-month period ended September 30, 2005, the Partnership acquired two office properties containing 283,511 net rentable square feet and 8 acres of developable land for an aggregate purchase price of $52.7 million.  The Partnership sold one industrial property containing 385,884 net rentable square feet and three parcels of land containing 18.0 acres for an aggregate $30.2 million, realizing net gains totaling $6.8 million.

On October 3, 2005, we entered into an agreement and plan of merger (the “Merger Agreement”) that provides for our acquisition of Prentiss and its operating subsidiary, Prentiss Properties Acquisition Partners, L.P. (“Prentiss OP”).  In the merger, each Prentiss common share (a “Prentiss Common Share”) will be converted into the right to receive 0.69 of a Brandywine common share (a “Brandywine Common Share”) and $21.50 in cash, subject to adjustment if a pre-closing cash dividend is paid as described below (the “Per Share Merger Consideration”).  Cash will be paid instead of fractional shares.  In the merger, each unit of a limited partnership interest in Prentiss OP (“Prentiss OPUnits”) will, at the option of the holder, be converted into Prentiss Common Shares with the right to receive the Per Share Merger Consideration or 1.3799 of our Class A Units (“Brandywine Class A Units”), subject to adjustment if the pre-closing cash dividend described below is paid.  In addition, each series D preferred share of Prentiss outstanding at closing of the merger will be converted into one newly created Brandywine series E preferred share.

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The total consideration payable in the merger (including the proceeds from the sale of the Prudential Properties described below and excluding transaction and severance expenses that will be incurred in connection with the merger) will be approximately $3.2 billion, consisting of $2.1 billion in cash and assumption of Prentiss debt and approximately 35.5 million Brandywine Common Shares.  

As part of the merger transaction, we, the Company and Prentiss have entered into separate agreements with The Prudential Insurance Company of America (“Prudential”) that provide for the acquisition by insurance company separate accounts or funds managed by Prudential (either on the day prior to, or the day of, the closing of the merger) of Prentiss properties that contain approximately 4.32 million net rentable square feet (“Prudential Properties”) for total consideration of approximately $747.7 million.  If the Prudential Properties are sold on the day prior to the closing of the merger, then the Prentiss Board would declare a cash dividend that would be payable to holders of Prentiss Common Shares of record on such date and the cashportion of the Per Share Merger Consideration would be reduced by the per share amount of such dividend.

Completion of the merger is subject to a number of closing conditions, including approval of the merger by holders of Prentiss Common Shares and approval by holders of Brandywine Common Shares of the issuance of Brandywine Common Shares in the merger.

We and the Company have provided additional information about this transaction in our Current Report on Form 8-K that we filed with the SEC on October 4, 2005.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s Discussion and Analysis of Financial Condition and Results of Operations discusses the Partnership’s consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America.  The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Management bases its estimates and assumptions on historical experience and current economic conditions.  On an on-going basis, management evaluates itsestimates and assumptions including those related to revenue, impairment of long-lived assets and the allowance for doubtful accounts.  Actual results may differ from those estimates and assumptions.  

The Partnership’s Annual Report on Form 10-K for the year ended December 31, 2004, contains a discussion of the Partnership’s critical accounting policies.  There have been no significant changes in the Partnership’s critical accounting policies since December 31, 2004.  See also Note 2 in the Partnership’s unaudited consolidated financial statements for the nine-month period ended September 30, 2005 as set forth herein.  Management discusses the Partnership’s critical accounting policies and management’s judgments and estimates with the Partnership’s Audit Committee.

RESULTS OF OPERATIONS

*Comparison of the Three-Month Periods Ended September 30, 2005 and 2004*

The table below shows selected operating information for the Same Store Property Portfolio and the Total Portfolio.  The Same Store Property Portfolio consists of 226 Properties containing an aggregate of approximately 15.0 million net rentable square feet that were owned for the entire three-month periods ended September 30, 2005 and 2004.  This table also includes a reconciliation from the Same Store Property Portfolio to the Total Portfolio net income (i.e., all properties owned by us as during the three-month periods ended September 30, 2005 and 2004) by providing information for the properties which were acquired, sold, or placed into service and administrative/elimination information for the three-month periods ended September 30, 2005 and2004.

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|                                                                                                                      |   | **Same Store Property Portfolio** |   |   | **Properties  Acquired (a)** |   |                      | **Development  Properties** |          |   | **Administrative/  Eliminations (b)** |     |   | **Total Portfolio** |     |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|------------------------------|--------|---------------------------|-----------------------------|---------------|--------|---------------------------------------|----------|--------|---------------------|----------|
|                                                                                                                      |        |                              |        |   |                              |   |                           |                        |               |   |
| ***(dollars in thousands)***                                                                                         |   | **2005**                          |   |   | **2004**                     |   | **Increase/  (Decrease)** |                        | **%  Change** |   |                                  | **2005** |   |                | **2004** |   |   | **2005** |   |   | **2004** |   |   | **2005** |   |   | **2004** |   |   | **2005** |   |   | **2004** |   |   | **Increase/  (Decrease)** |   | **%  Change** |   |
|                                                                                                                      |        |                                   |        |        |                              |        |                           |                        |               |   |                                       |          |   |                     |          |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |   |
|                                                                                                                      |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Revenue:                                                                                                             |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
|   Rents                                                                                                    | $      | 60,973                            |   | $      | 62,004                       |   | ($1,031)                  |                        | -2            | %      |                                       | $18,737  |   | $                   | 1,730    |   | $ | 1,638 |   | $ | 2,794 |   | $ | — |   | $ | 0 |   | $ | 81,348 |   | $ | 66,528 |   | $ | 14,820 |   | 22 | % |
|   Tenant    reimbursements                                                             |   | 8,023                             |   |   | 8,093                        |   | (70                       | )                           | -1            | %      |                                  | 2,999    |   |                | 192      |   |   | 156 |   |   | 120 |   |   | 625 |   |   | 1,207 |   |   | 11,803 |   |   | 9,612 |   |   | 2,191 |   | 23 | % |
|    Other                                                                                              |   | 658                               |   |   | 277                          |   | 381                       |                        | 100           | %      |                                  | 140      |   |                | 1        |   |   | 503 |   |   | 26 |   |   | 1,326 |   |   | 2,251 |   |   | 2,627 |   |   | 2,555 |   |   | 72 |   | 3 | % |
|                                                                                                                      |        |                                   |        |        |                              |        |                           |                        |               |   |                                       |          |   |                     |          |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |   |
| Total revenue                                                                                                        |   | 69,654                            |   |   | 70,374                       |   | (720                      | )                           | -1            | %      |                                  | 21,876   |   |                | 1,923    |   |   | 2,297 |   |   | 2,940 |   |   | 1,951 |   |   | 3,458 |   |   | 95,778 |   |   | 78,695 |   |   | 17,083 |   | 22 | % |
|                                                                                                                      |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Operating Expenses:                                                                                                  |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
|    Property operating     expenses                                           |   | 21,776                            |   |   | 22,406                       |   | (630                      | )                           | -3            | %      |                                  | 7,374    |   |                | 693      |   |   | 698 |   |   | 563 |   |   | (2,770 | ) |   | (1,772 | ) |   | 27,078 |   |   | 21,890 |   |   | 5,188 |   | 24 | % |
|    Real estate taxes                                                                                  |   | 7,254                             |   |   | 7,107                        |   | 147                       |                        | 2             | %      |                                  | 2,278    |   |                | 71       |   |   | 334 |   |   | 470 |   |   | — |   |   | — |   |   | 9,866 |   |   | 7,648 |   |   | 2,218 |   | 29 | % |
|    Depreciation and     amortization                                         |   | 16,964                            |   |   | 16,281                       |   | 683                       |                        | 4             | %      |                                  | 10,506   |   |                | 912      |   |   | 1,169 |   |   | 427 |   |   | (104 | ) |   | 660 |   |   | 28,535 |   |   | 18,280 |   |   | 10,255 |   | 56 | % |
|    Administrative     expenses                                               |   | —                            |   |   | —                       |   | —                    |                        | 0             | %      |                                  | —   |   |                | 3        |   |   | — |   |   | — |   |   | 4,486 |   |   | 3,531 |   |   | 4,486 |   |   | 3,534 |   |   | 952 |   | 27 | % |
|                                                                                                                      |        |                                   |        |        |                              |        |                           |                        |               |   |                                       |          |   |                     |          |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |   |
| Total property    operating    expenses                                      |   | 45,994                            |   |   | 45,794                       |   | 200                       |                        | —        |   |                                  | 20,158   |   |                | 1,679    |   |   | 2,201 |   |   | 1,460 |   |   | 1,612 |   |   | 2,419 |   |   | 69,965 |   |   | 51,352 |   |   | 18,613 |   | 36 | % |
|                                                                                                                      |        |                                   |        |        |                              |        |                           |                        |               |   |                                       |          |   |                     |          |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |  |   |  |   |
| Operating Income                                                                                                     |   | 23,660                            |   |   | 24,580                       |   | (920                      | )                           | —        |        |                                  | 1,718    |   |                | 244      |   |   | 96 |   |   | 1,480 |   |   | 339 |   |   | 1,039 |   |   | 25,813 |   |   | 27,343 |   |   | (1,530 | ) | -6 | % |
|                                                                                                                      |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Other Income    (Expense):                                                                       |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
|    Interest income                                                                                    |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 707 |   |   | 763 |   |   | (56 | ) | -7 | % |
|    Interest expense                                                                                   |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | (17,762 | ) |   | (11,474 | ) |   | (6,288 | ) | 55 | % |
|    Equity in income     of real estate     ventures |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 745 |   |   | 665 |   |   | 80 |   | 12 | % |
| Net gain on   sales of interest    in real estate                                      |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 4,640 |   |   | 1,753 |   |   | 2,887 |   | 100 | % |
|                                                                                                                      |   |                              |        |   |                         |        |                      |                        |          |   |                                  |     |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Income before   minority interest                                                                     |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 14,143 |   |   | 19,050 |   |   | (4,907 | ) | -26 | % |
| Minority interest   attributable to   continuing   operations           |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | (41 | ) |   | 346 |   |   | (387 | ) | -100 | % |
|                                                                                                                      |   |                              |        |   |                         |        |                      |                        |          |   |                                  |     |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Income from    continuing    operations                                                |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 14,102 |   |   | 19,396 |   |   | (5,294 | ) | -27 | % |
|                                                                                                                      |   |                              |        |   |                         |        |                      |                        |          |   |                                  |     |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Income from   discontinued   operations                                                |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   |   | 2,177 |   |   | 2,459 |   |   | (282 | ) | -11 | % |
|                                                                                                                      |   |                              |        |   |                         |        |                      |                        |          |   |                                  |     |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Net Income                                                                                                           |   |                                   |        |   |                              |        |                           |                        |               |   |                                  |          |   |                |          |   |   |  |   |   |  |   |   |  |   |   |  |   | $ | 16,279 |   | $ | 21,855 |   |   | ($5,576) |   | -26 | % |
|                                                                                                                      |   |                              |        |   |                         |        |                      |                        |          |   |                                  |     |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |

EXPLANATORY NOTES(a) – Represents      the operations of properties acquired that are not included in the definition      of the Same Store Property Portfolio, primarily the TRC Properties.(b) – Represents certain revenue and expenses at the      corporate level as well as various intercompany costs that are eliminated      in consolidation.

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*Revenue*

Revenue increased by $17.1 million primarily due to properties that were acquired in 2004, most significantly the TRC Properties.  Revenue for Same Store Properties decreased by $0.7 million as a result of the timing of leases being entered into as well as a decrease in average rents collected.  Average occupancy for the Same Store Properties increased to 90.9 % in 2005 from 90.7% in 2004.

*Operating Expenses and Real Estate Taxes*

Property operating expenses increased by $5.2 million in 2005 primarily due to the properties acquired in the latter half of 2004 and higher expense levels in 2005 on the Same Store Properties.  Property operating expenses for the Same Store Properties decreased by $0.6 million in 2005 over 2004 due to decreases in repairs and maintenance expenses at various Same Store Properties.  

Real estate taxes increased by $2.2 million primarily due to the properties acquired in the latter half of 2004, most significantly the TRC acquisition.  Real estate taxes for the Same Store Properties increased by $0.1 million in 2005 as a result of higher tax rates and property assessments.

*Depreciation and Amortization Expense*

Depreciation and amortization expense increased by $10.3 million in 2005 primarily due to the properties acquired in the second half of 2004 and amortization from additional tenant improvements and leasing commissions incurred over the year.

*Administrative Expenses*

Administrative expenses increased by $1.0 million in 2005 primarily due to the cost of additional personnel hired as part of the TRC acquisition in September 2004 and higher compensation and benefits costs for employees.  

*Interest Expense*

Interest expense increased by $6.3 million in 2005 primarily due to increased debt from the Partnership’s fixed rate unsecured notes issued in the fourth quarter of 2004 offset by a decrease in the effective borrowing cost under the Partnership’s unsecured credit facilities, including the effect of interest rate hedges during 2004, as well as an increase in the amount of interest capitalized during 2005 over the comparable 2004 period.  

*Net Gain on Sales of Real Estate*

During the three-month period ended September 30, 2005, the Partnership sold three parcels of land, realizing net gains totaling $4.6 million, an increase from a net gain of $1.8 million in 2004 for sales of  non-operating parcels of land. 

*Minority Interest*

Minority interest from continuing operations represents the income attributable to the interest of the outside joint venture partners in the net income (loss) of the Partnership’s two consolidated real estate ventures.  These two real estate ventures were consolidated effective March 31, 2004.

*Discontinued Operations*

Discontinued operations decreased by $0.3 million in 2005 primarily due to the timing of sales for assets included in discontinued operations.

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*Comparison of the Nine-Month Periods Ended September 30, 2005 and 2004*

The table below shows selected operating information for the Same Store Property Portfolio and the Total Portfolio.  The Same Store Property Portfolio consists of 226 Properties containing an aggregate of approximately 15.0 million net rentable square feet that were owned for the entire nine-month periods ended September 30, 2005 and 2004.  This table also includes a reconciliation from the Same Store Property Portfolio to the Total Portfolio (i.e., all properties owned by us during the nine-month periods ended September 30, 2005 and 2004) by providing information for the properties which were acquired, sold, or placed into service and administrative/elimination information for the nine-month periods ended September 30, 2005 and 2004.

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|                                                                                                                     | **Same Store Property Portfolio** |   |     | **Properties  Acquired (a)** |                      |   | **Development  Properties** |   | **Administrative/  Eliminations (b)** |     |   | **Total Portfolio** |   |
|---------------------------------------------------------------------------------------------------------------------|-----------------------------------|--------|----------|------------------------------|---------------------------|--------|-----------------------------|--------|---------------------------------------|----------|--------|---------------------|--------|
|                                                                                                                     |                                   |   |     |                              |                      |   |                             |   |                                       |     |        |                |
| ***(dollars in thousands)***                                                                                        | **2005**                          |   | **2004** |                         | **Increase/  (Decrease)** |   | **%  Change**               |   |                                  | **2005** |   | **2004**            |   |   | **2005** |   | **2004** |   | **2005** |   | **2004** |   |   | **2005** |   |   | **2004** |   |   | **Increase/  (Decrease)** |   | **%  Change** |   |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |  |  |   |  |  |   |  |  |   |  |   |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Revenue:                                                                                                            |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
|    Rents                                                                                             | $184,982                          | $      | 186,411  | $                            | ($1,429                   | )      | -1                          | %      | $                                     | 55,230   | $      | 3,229               |   | $ | 4,020 | $ | 4,884 | $ | — | $ | — |   | $ | 244,232 |   | $ | 194,524 |   | $ | 49,708 |   | 26 | % |
|    Tenant      reimbursements                                          | 24,265                            |   | 23,808   |                         | 457                       |   | 2                           | %      |                                  | 8,968    |   | 384                 |   |   | 439 |   | 178 |   | 1,250 |   | 1,293 |   |   | 34,922 |   |   | 25,663 |   |   | 9,259 |   | 36 | % |
|    Other                                                                                             | 5,486                             |   | 1,814    |                         | 3,672                     |   | 100                         | %      |                                  | 702      |   | 12                  |   |   | 582 |   | 51 |   | 3,842 |   | 6,044 |   |   | 10,612 |   |   | 7,921 |   |   | 2,691 |   | 34 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |  |  |   |  |  |   |  |  |   |  |   |
| Total revenue                                                                                                       | 214,733                           |   | 212,033  |                         | 2,700                     |   | 1                           | %      |                                  | 64,900   |   | 3,625               |   |   | 5,041 |   | 5,113 |   | 5,092 |   | 7,337 |   |   | 289,766 |   |   | 228,108 |   |   | 61,658 |   | 27 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Operating Expenses:                                                                                                 |                              |        |     |                              |                      |        |                        |   |                                       |     |        |                |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
|    Property      operating      expenses | 68,226                            |   | 67,308   |                         | 918                       |   | 1                           | %      |                                  | 22,060   |   | 1,211               |   |   | 1,965 |   | 1,869 |   | (7,599 | ) | (6,294 | ) |   | 84,652 |   |   | 64,094 |   |   | 20,558 |   | 32 | % |
|    Real estate taxes                                                                                 | 21,267                            |   | 20,343   |                         | 924                       |   | 5                           | %      |                                  | 6,971    |   | 94                  |   |   | 871 |   | 740 |   | 12 |   | 198 |   |   | 29,121 |   |   | 21,375 |   |   | 7,746 |   | 36 | % |
|    Depreciation and       amortization                                 | 51,150                            |   | 47,219   |                         | 3,931                     |   | 8                           | %      |                                  | 29,475   |   | 541                 |   |   | 2,395 |   | 1,227 |   | 1,770 |   | 1,926 |   |   | 84,790 |   |   | 50,913 |   |   | 33,877 |   | 67 | % |
|    Administrative      expenses                                        | 1                                 |   | —   |                         | 1                         |   | 0                           | %      |                                  | 2        |   | —              |   |   | — |   | 63 |   | 13,613 |   | 10,914 |   |   | 13,616 |   |   | 10,977 |   |   | 2,639 |   | 24 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |  |  |   |  |  |   |  |  |   |  |   |
| Total property      operating      expenses             | 140,644                           |   | 134,870  |                         | 5,774                     |   | 4                           | %      |                                  | 58,508   |   | 1,846               |   |   | 5,231 |   | 3,899 |   | 7,796 |   | 6,744 |   |   | 212,179 |   |   | 147,359 |   |   | 64,820 |   | 44 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |  |  |   |  |  |   |  |  |   |  |   |
| Operating Income                                                                                                    | 74,089                            |   | 77,163   |                         | (3,074                    | )      | -4                          | %      |                                  | 6,392    |   | 1,779               |   |   | (190 | ) | 1,214 |   | (2,704 | ) | 593 |   |   | 77,587 |   |   | 80,749 |   |   | (3,162 | ) | -4 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Other Income      (Expense):                                                          |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Interest income                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | 2,174 |   |   | 1,815 |   |   | 359 |   | 20 | % |
| Interest expense                                                                                                    |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | (53,366 | ) |   | (35,526 | ) |   | (17,840 | ) | 50 | % |
| Equity in income   of real estate   ventures                                          |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | 2,296 |   |   | 1,573 |   |   | 723 |   | 46 | % |
| Net gain on   sales of interest    in real estate                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | 4,640 |   |   | 2,901 |   |   | 1,739 |   |  |   |
|                                                                                                                     |                              |   |     |                         |                      |   |                        |   |                                  |     |   |                |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Income before   minority interest                                                                    |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | 33,331 |   |   | 51,512 |   |   | (18,181 | ) | -35 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Minority interest   attributable to   continuing   operations          |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | (213 | ) |   | 324 |   |   | (537 | ) | -100 | % |
|                                                                                                                     |                              |   |     |                         |                      |   |                        |   |                                  |     |   |                |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Income from   continuing   operations                                                 |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | 33,118 |   |   | 51,836 |   |   | (18,718 | ) | -36 | % |
|                                                                                                                     |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   |  |   |   |  |   |   |  |   |  |   |
| Income from   discontinued   operations                                               |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   |   | 2,037 |   |   | 2,494 |   |   | (457 | ) | -18 | % |
|                                                                                                                     |                              |   |     |                         |                      |   |                        |   |                                  |     |   |                |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |
| Net Income                                                                                                          |                                   |   |          |                         |                           |   |                             |   |                                  |          |   |                     |   |   |  |   |  |   |  |   |  |   | $ | 35,155 |   | $ | 54,330 |   |   | ($19,175 | ) | -35 | % |
|                                                                                                                     |                              |   |     |                         |                      |   |                        |   |                                  |     |   |                |   |   |   |   |   |   |   |   |   |   |  |  |   |  |  |   |  |  |   |  |   |

| EXPLANATORY NOTE                                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| (a) – Represents      the operations of properties acquired that are not included in the definition    of the Same Store Property Portfolio, primarily the TRC Properties. |
| (b) – Represents      certain revenue and expenses at the corporate level as well as various    intercompany costs that are eliminated in consolidation.                   |
|                                                                                                                                                                                 |

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*Revenue*

Revenue increased by $61.7 million primarily due to properties that were acquired in 2004, primarily the TRC Properties and an increase in other income in 2005 as compared to 2004.  Other revenue represents lease termination fees, bankruptcy settlement proceeds, leasing commissions and third-party management fees.  Total portfolio other revenue increased by $2.7 million when comparing the nine-month period ended September 30, 2005 to the comparable period in 2004 primarily due to an increase in net termination fee associated with tenant terminations in 2005 offset by the settlement of litigation totaling $1.0 million plus accrued interest on the Partnership’s security deposit in 2004.

*Operating Expenses and Real Estate Taxes*

Property operating expenses increased by $20.6 million in 2005 primarily due to the properties acquired in the latter half of 2004 and higher expense levels in 2005 on the Same Store Properties.  Property operating expenses for the Same Store Properties increased by $0.9 million in 2005 over 2004 due to increases in snow removal costs, utility expenses and repairs and maintenance expenses at various Same Store Properties.  

Real estate taxes increased by $7.7 million primarily due to the properties acquired in the latter half of 2004 most significantly the TRC acquisition.  Real estate taxes for the Same Store Properties increased by $0.9 million in 2005 as a result of higher tax rates and property assessments.

*Depreciation and Amortization Expense*

Depreciation and amortization expense increased by $33.9 million in 2005 primarily due to the properties acquired in the second half of 2004 and amortization from additional tenant improvements and leasing commissions incurred over the year.

*Administrative Expenses*

Administrative expenses increased by $2.6 million in 2005 primarily due to the cost of additional personnel hired as part of the TRC acquisition in September 2004, higher compensation and benefits costs for employees and increased spending on process and technology improvements.  

*Interest Expense*

Interest expense increased by $17.8 million in 2005 primarily due to increased debt from the Partnership’s fixed rate unsecured notes issued in the fourth quarter of 2004 offset by a decrease in the effective borrowing cost under the Partnership’s unsecured credit facilities, including the effect of interest rate hedges during 2004, as well as an increase in the amount of interest capitalized during 2005 over the comparable 2004 period.  

*Equity in Income of Real Estate Ventures*

Equity in income of Real Estate Ventures increased by $0.7 million in 2005 as a result of increased net income from the Real Estate Ventures.

*Net Gain on Sales of Real Estate*

During the nine-month period ended September 30, 2005, the Partnership sold three parcels of land containing, realizing net gains totaling $4.6 million, an increase from a net gain of $2.9million in 2004.

*Minority Interest*

Minority interest from continuing operations represents the income attributable to the interest of the outside joint venture partners in the net income (loss) of the Partnership’s two consolidated real estate ventures.  These two real estate ventures were consolidated effective March 31, 2004.

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*Discontinued Operations*

Discontinued operations decreased by $0.5 million in 2005 primarily due to the timing of sales for assets included in discontinued operations.

LIQUIDITY AND CAPITAL RESOURCES

***General***

Our principal liquidity needs for the next twelve months are as follows:

|  | • | fund normal recurring expenses, |
|--|--------|---------------------------------|

|  | • | fund acquisition and transaction costs in our pending acquisition by merger of Prentiss, |
|--|--------|------------------------------------------------------------------------------------------|

|  | • | meet debt service requirements, |
|--|--------|---------------------------------|

|  | • | fund capital expenditures, including capital and tenant improvements and leasing costs, |
|--|--------|-----------------------------------------------------------------------------------------|

|  | • | fund current development costs, including continued development of Cira Centre in University City, Philadelphia, and |
|--|--------|----------------------------------------------------------------------------------------------------------------------|

|  | • | fund distributions declared by our Board of Trustees. |
|--|--------|-------------------------------------------------------|

We believe that these needs will be satisfied using cash flows generated by operations and provided by financing activities.  Rental revenue, recovery income from tenants, and other income from operations are our principal sources of cash used to pay operating expenses, debt service, recurring capital expenditures and the minimum distribution required to maintain the Company’s REIT qualification.  We seek to increase cash flows from our existing properties by maintaining quality standards for our properties that promote high occupancy rates and permit increases in rental rates while reducing tenant turnover and controlling operating expenses.  Our sources of revenue also include third-party fees generated by our property management, leasing, developmentand construction businesses.  Consequently, we believe our revenue, together with proceeds from financing activities, will continue to provide the necessary funds for our short-term liquidity needs.  However, material changes in these factors may adversely affect our net cash flows.  Such changes, in turn, would adversely affect our ability to fund distributions, debt service payments and tenant improvements.  In addition, a material adverse change in our cash provided by operations may affect the financial performance covenants under our unsecured Credit Facility and unsecured notes.

Our principal recurring liquidity needs for periods beyond twelve months are for the costs of developments, redevelopments, property acquisitions, scheduled debt maturities, major renovations, expansions and other non-recurring capital improvements.  We draw on multiple financing sources to fund our principal recurring long-term capital needs.  Our Credit Facility is utilized for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  In the fourth quarter of 2004 we completed two offerings of unsecured notes and expect to utilize the debt market and common equity as capital sources for other long-term capital needs.

As a result of our pending acquisition by merger of Prentiss, we will have additional short and long-term liquidity requirements.  Historically, we have satisfied these types of requirements principally through the most advantageous source of capital at that time, which has included public offerings of unsecured debt and private placements of secured and unsecured debt, sales of equity by the Company and contributions of the proceeds to us, capital raised through the disposition of assets, and joint venture capital transactions.  We believe these sources of capital will continue to be available in the future to fund our capital needs.  In conjunction with our pending acquisition, we received a commitment from affiliates of JPMorgan for (i) a 364-day term loan in the amount of $750 million, (ii) aninterim term loan in the amount of $240 million, and (iii) a back-stop revolving credit facility in the amount of $600 million.  We expect to use proceeds from borrowings under the 364-day term loan to fund a portion of the cash component of the merger consideration.  The interim term loan will only be drawn if certain properties owned by Prentiss and anticipated to be sold prior to or concurrently with the merger are not sold by such times.  The interim term loan will have a term of 60 days.  The back-stop revolving credit facility will only be put into place if we are not successful in completing, prior to the merger, an amendment and restatement of our existing revolving credit facility on terms which allow for the consummation of the merger and are otherwise satisfactory to us.  Theback-stop revolving credit facility will have a term of 60 days from the closing of the merger.  The financing commitments are subject to completion of definitive loan documents and customary closing conditions. 

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Our ongoing ability to incur additional debt is dependent upon a number of factors, including our credit ratings, the value of our unencumbered assets, our degree of leverage and borrowing restrictions imposed by our current lenders.  We currently have investment grade ratings for prospective unsecured debt offerings from three major rating agencies.  If we experienced a credit downgrade, we may be limited in our access to capital in the unsecured debt market, which we have used to fund investment activities, and the interest rate we are paying under our existing credit facility would increase.

Our ability to raise funds through sales of common and preferred shares is dependent on, among other things, general market conditions for REITs, market perceptions about our company and the current trading price of our shares.  We will continue to analyze which source of capital is most advantageous to us at any particular point in time, but the equity markets may not be consistently available on terms that are attractive.  

***Cash Flows***

The following summary discussion of our cash flows is based on the consolidated statement of cash flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented.

As of September 30, 2005 and December 31, 2004, we maintained cash and cash equivalents of $23.3 million and $15.3 million, respectively, an increase of $8.0 million.  This increase was the result of the following changes in cash flow from our activities for the nine-month period ended September 30:

| **Activity**   |   |   | **2005** |   |   | **2004** |   |
|----------------|--------|--------|----------|--------|--------|----------|--------|
|                |   |        |          |   |        |          |   |
| Operating      |   | $      | 103,766  |   | $      | 100,710  |   |
| Investing      |   |   | (206,150 | )      |   | (634,716 | )      |
| Financing      |   |   | 110,378  |   |   | 535,317  |   |
|                |   |        |          |   |        |          |   |
| Net cash flows |   | $      | 7,994    |   | $      | 1,311    |   |
|                |   |        |          |   |        |          |   |

Our principle source of cash flows is from the operations of our Properties.  Our increased cash flow from operating activities in the nine-months ended September 30, 2005 compared to the same period in 2004 is primarily attributable to reductions in other assets which generated positive cash flow of $6.2 million in the 2004 period, the timing of real estate tax and other payments which generated higher cash outflows in the 2005 period, and greater net cash inflows from a larger asset base in 2005 as compared to 2004.

Increased cash flows from investing activities in the nine-months ended September 30, 2005 compared to the same period in 2004 were attributable to the decrease in our acquisition of properties and developable land parcels to $92.7 million in 2005 from $569.5 million in 2004 and was offset by an increase of $57.6 million in construction costs related to our Cira Centre development project and various other capital and tenant improvement.  2004 included the TRC acquisition.

Decreased cash flows from financing activities were due to the absence of term loan borrowings in 2005 ($433.0 million in 2004) and the decrease in net proceeds from share issuances from $392.3 million in 2004 which were offset by the increase in net proceeds from draws on the Credit Facility to $188.0 million in 2005 from $17.0 million in 2004 and the absence of cash outflow from term loan repayments ($100.0 million in 2004).  

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***Capitalization***

     **Indebtedness**

As of September 30, 2005, we had approximately $1.5 billion of outstanding indebtedness.  The table below summarizes our mortgage notes payable, our unsecured notes and our revolving credit facility at September 30, 2005 and December 31, 2004:

|                                                       |   |                              | **September 30,  2005** |   |   | **December 31,  2004** |   |
|------------------------------------------------------------|--------|-----------------------------------|-------------------------|--------|--------|------------------------|--------|
|                                                            |   |                                   |                         |   |        |                        |   |
|                                                       |   | **(dollars        in thousands)** |                    |
| ***Balance:***                                             |   |                              |                    |   |   |                   |   |
|     Fixed rate                         |   | $                                 | 1,126,135               |   | $      | 1,133,513              |   |
|     Variable rate                      |   |                              | 355,116                 |   |   | 173,156                |   |
|                                                            |   |                                   |                         |   |        |                        |   |
|         Total      |   | $                                 | 1,481,251               |   | $      | 1,306,669              |   |
|                                                            |   |                                   |                         |   |        |                        |   |
| ***Percent of Total Debt:***                               |   |                              |                    |   |   |                   |   |
|     Fixed rate                         |   |                              | 76                      | %      |   | 87                     | %      |
|     Variable rate                      |   |                              | 24                      | %      |   | 13                     | %      |
|                                                            |   |                                   |                         |   |        |                        |   |
|         Total      |   |                              | 100                     | %      |   | 100                    | %      |
|                                                            |   |                                   |                         |   |        |                        |   |
|                                                       |   |                              |                    |   |   |                   |   |
| ***Weighted-average interest        rate at period end:*** |   |                              |                    |   |   |                   |   |
|     Fixed rate                         |   |                              | 5.9                     | %      |   | 5.9                    | %      |
|     Variable rate                      |   |                              | 4.6                     | %      |   | 3.5                    | %      |
|         Total      |   |                              | 5.6                     | %      |   | 5.6                    | %      |

The variable rate debt shown above generally bears interest based on various spreads over LIBOR (the term of which is selected by the Partnership).

The Partnership utilizes credit facility borrowings for general business purposes, including the acquisition, development and redevelopment of properties and the repayment of other debt.  The Partnership maintains a $450 million unsecured credit facility (the “Credit Facility”) that matures in May 2007, subject to a one year extension option upon payment of a fee and absence any defaults at the time of the extension.  Borrowings under the Credit Facility generally bear interest at LIBOR plus a spread over LIBOR ranging from 0.65% to 1.20% based on the Partnership’s unsecured senior debt rating.  The Partnership has an option to increase its maximum borrowings under the Credit Facility to $600 million subject to the absence ofany defaults and our ability to acquire additional commitments from our existing lenders or new lenders.  The Credit Facility contains various financial and non-financial covenants.  As of September 30, 2005, the Partnership was in compliance with all such covenants.

The Partnership utilizes unsecured notes as a long-term financing alternative.  The indentures and note purchase agreements contain various financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 40%, (3) a debt service coverage ratio of greater than 1.5 to 1.0, and (4) an unencumbered asset value of not less than 150% of unsecured debt.  In addition, the note purchase agreement relating to the 2008 Notes contains covenants that are similar to the above covenants.  At September 30, 2005, the Partnership was in compliance with each of these financial restrictions and requirements.

The Partnership has mortgages, loans payable and other obligations which consist of various loans collateralized by certain of the Partnership’s Properties.  Payments on mortgages, loans payable and other obligations are generally due in monthly installments of principal and interest, or interest only.

The Partnership intends to refinance its mortgage indebtedness as it matures primarily through the use of unsecured debt or equity.  

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As of September 30, 2005, the Partnership’s debt-to-market capitalization ratio was 46.8%.  As a general policy, the Partnership intends, but is not obligated, to adhere to a policy of maintaining a debt-to-market capitalization ratio of no more than 50%.

     **Partner’s Equity**

On September 20, 2005, the Partnership declared a distribution of $0.44 per Common Unit, totaling $24.9 million, which was paid on October 17, 2005 to shareholders of record as of October 5, 2005.  On this same date, the Partnership simultaneously declared a $0.44 per unit cash distribution to holders of Class A Units totaling $0.9 million.

On September 20, 2005, the Partnership declared distributions to holders of its Series D Preferred Mirror Units and Series E Mirror Units to holders of record on September 30, 2005.  These units are currently entitled to a cumulative preferential return of 7.50% and 7.375%, respectively.  Distributions paid on October 17, 2005 to holders of Series D Preferred Mirror Units and Series E Preferred Mirror Units totaled $0.9 million and $1.1 million, respectively.

The Board of Trustees of the Company approved a share repurchase program authorizing it to repurchase up to 4.0 million of its outstanding Common Shares.  Through September 30, 2005, the Company had repurchased 3.2 million of its Common Shares at an average price of $17.75 per share.  Concurrent with share repurchases by the Company, the Partnership has repurchased 3.2 million of Partnership Units from the Company at an average price of $17.75 per unit.  Under the share repurchase program, the Company has the authority to repurchase an additional 762,000 shares, and, in exchange for the funds required to repurchase these shares, the Partnership will repurchase an equivalent number of Common Partnership Units from the Company.  No time limit hasbeen placed on the duration of the share repurchase program.  

     **Shelf Registration Statement**

The Company and the Partnership have an effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission that registered $750 million in common shares, preferred shares, depositary shares and warrants and $750 million in debt securities.  As of September 30, 2005, the registration statement had the entire $750 million of capacity for future issuances of common shares, preferred shares, depositary shares and warrants and had the entire $750 million of capacity for future issuances of debt securities.

***Short- and Long-Term Liquidity***

The Partnership believes that its cash flow from operations is adequate to fund its short-term liquidity requirements.  Cash flow from operations is generated primarily from rental revenues and operating expense reimbursements from tenants and management services income from providing services to third parties.  The Partnership intends to use these funds to meet short-term liquidity needs, which are to fund operating expenses, debt service requirements, recurring capital expenditures, tenant allowances, leasing commissions and the minimum distributions required to maintain the Company’s REIT qualification under the Internal Revenue Code.

The Partnership expects to meet its long-term liquidity requirements, such as for property acquisitions, development, investments in real estate ventures, scheduled debt maturities, major renovations, expansions and other significant capital improvements, through cash from operations, borrowings under its Credit Facility, other long-term secured and unsecured indebtedness, the issuance of equity securities and the proceeds from the disposition of selected assets.

***Inflation***

A majority of the Partnership’s leases provide for separate escalations of real estate taxes and operating expenses either on a triple net basis or over a base amount.  In addition, many of the office leases provide for fixed base rent increases.  The Partnership believes that inflationary increases in expenses will be significantly offset by increases in expense reimbursement from tenants and contractual rent increases.

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***Commitments and Contingencies***

The following table outlines the timing of payment requirements related to the Partnership’s contractual commitments as of September 30, 2005:

|                       |   |    |   |   | **Payments by Period (in thousands)** |   |
|----------------------------|--------|---------|--------|--------|---------------------------------------|--------|
|                       |   |    |   |        |                                  |
|                       |   |    |   |   |                                  |   |   | **Less than** |   |   |   |   |   |   |   |   | **More than** |   |
|                       |   |    |   |   | **Total**                             |   |   | **1 Year** |   |   | **1-3 Years** |   |   | **3-5 Years** |   |   | **5 Years** |   |
|                       |   |    |   |        |                                       |   |  |  |   |  |  |   |  |  |   |  |  |   |
| Mortgage notes payable (a) | $      | 498,301 |   | $      | 18,923                                |   | $ | 43,568 |   | $ | 86,395 |   | $ | 349,415 |   |
| Revolving credit facility  |   | 340,000 |   |   | —                                |   |   | 340,000 |   |   | — |   |   | — |   |
| Unsecured debt  (a)        |   | 638,000 |   |   | —                                |   |   | — |   |   | 388,000 |   |   | 250,000 |   |
| Ground leases (b)          |   | 259,990 |   |   | 1,435                                 |   |   | 2,869 |   |   | 2,993 |   |   | 252,693 |   |
| Other liabilities          |   | 1,525   |   |   | 837                                   |   |   | — |   |   | — |   |   | 688 |   |
|                       |   |    |   |        |                                       |   |  |  |   |  |  |   |  |  |   |  |  |   |
|                       |   |    |   | $      | 1,737,816                             |   | $ | 21,195 |   | $ | 386,437 |   | $ | 477,388 |   | $ | 852,796 |   |
|                       |   |    |   |        |                                       |   |  |  |   |  |  |   |  |  |   |  |  |   |

|   |   |   |                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|--------|--------|------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   | (a)    |   | Amounts do not include unamortized discounts and/or premiums.                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | (b)    |   | Future minimum rental    payments under the terms of all non-cancelable ground leases under which    the Company |   |
|   |   |   | is the lessee are expensed on a straight-line basis regardless of when payments are due.                         |   |   |   |   |   |   |   |

The Partnership intends to refinance its mortgage notes payable as they become due or repay those that are secured by properties being sold.  The Partnership expects to renegotiate its Credit Facility prior to maturity or extend its term.

We are a party to an agreement with one of our Trustees (Donald E. Axinn) in which we agreed to fund $5.5 million in September 2010 to acquire a fifty percent interest in an approximately 141,725 square foot office building located at 101 Paragon Drive, Montvale, New Jersey.  Our agreement provides for proceeds of our $5.5 million payment to be used (together with funds provided by Mr. Axinn) to repay in full the third party loan that encumbers this property.

As part of our purchase of the TRC Properties in September 2004, the Partnership agreed to issue to the sellers up to a maximum of $9.7 million of Class A Units of the Partnership if certain of the acquired properties achieve at least 95% occupancy prior to September 21, 2007.  At September 30, 2005, the maximum amount payable under this arrangement was $5.7 million.  

As part of the TRC acquisition, we acquired our interest in Two Logan Square, a 696,477 square foot office building in Philadelphia, primarily through a second and third mortgage secured by this property.  We currently do not expect to take title to Two Logan Square until, at the earliest, September 2019.  In the event that we take title to Two Logan Square upon a foreclosure of our mortgage, we have agreed to make a payment to an unaffiliated third party with a residual interest in the fee owner of this property.  The amount of the payment would be $0.6 million if we must pay a state and local transfer upon taking title, and $2.9 million if no transfer tax is payable upon the transfer.

In our acquisition of the TRC Properties and several of our other acquisitions, we agreed not to sell the acquired properties.  In the case of the TRC Properties, we agreed not to sell the acquired properties for periods ranging from three to 15 years from the acquisition date as follows: 201 Radnor Financial Center, 555 Radnor Financial Center and 300 Delaware Avenue (three years); One Rodney Square and 130/150/170 Radnor Financial Center (10 years); and One Logan Square, Two Logan Square and Radnor Corporate Center (15 years).  We also own 14 properties that aggregate 1.0 million square feet and have agreed not to sell these properties for periods that expire through 2008.  These agreements generally provide that we may dispose of the subjectProperties only in transactions that qualify as tax-free exchanges under Section 1031 of the Code or in other tax deferred transactions.  In the event that we sell any of the properties within the applicable restricted period in non-exempt transactions, we have agreed to pay significant tax liabilities that would be incurred by the parties who sold us the applicable property.

We invest in our Properties and regularly incur capital expenditures in the ordinary course to maintain the Properties.  We believe that such expenditures enhance the competitiveness of the Properties.  We also enter into construction, utility and service contracts in the ordinary course of business which may extend beyond one year.  These contracts include terms that provide for cancellation with insignificant or no cancellation penalties.

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***Interest Rate Risk and Sensitivity Analysis***

The analysis below presents the sensitivity of the market value of the Partnership’s financial instruments to selected changes in market rates.  The range of changes chosen reflects the Partnership’s view of changes which are reasonably possible over a one-year period.  Market values are the present value of projected future cash flows based on the market rates chosen.

The Partnership’s financial instruments consist of both fixed and variable rate debt.  As of September 30, 2005, the Partnership’s consolidated debt consisted of $483.2 million in fixed rate mortgages and $15.1 million in variable rate mortgage notes, $340.0 million borrowings under its variable rate Credit Facility and $636.6 million in fixed rate unsecured notes (net of discounts).  All financial instruments were entered into for other than trading purposes and the net market value of these financial instruments is referred to as the net financial position.  Changes in interest rates have different impacts on the fixed and variable rate portions of the Partnership’s debt portfolio.  A change in interest rates on the fixed portionof the debt portfolio impacts the net financial instrument position, but has no impact on interest incurred or cash flows.  A change in interest rates on the variable portion of the debt portfolio impacts the interest incurred and cash flows, but does not impact the net financial instrument position.

If market rates of interest on our variable rate debt increase by 1%, the increase in annual interest expense on our variable rate debt would decrease future earnings and cash flows by approximately $3.6 million.  If market rates of interest on our variable rate debt decrease by 1%, the decrease in interest expense on our variable rate debt would increase future earnings and cash flows by approximately $3.6 million.

If market rates of interest increase by 1%, the fair value of our outstanding fixed-rate mortgage debt would decrease by approximately $28.9 million.  If market rates of interest decrease by 1%, the fair value of our outstanding fixed-rate mortgage debt would increase by approximately $31.8 million.

**Item 3.  Quantitative and Qualitative Disclosures about Market Risk**

Market risk is the exposure to loss resulting from changes in interest rates, commodity prices and equity prices.  In pursuing its business plan, the primary market risk to which the Partnership is exposed is interest rate risk.  Changes in the general level of interest rates prevailing in the financial markets may affect the spread between the Partnership’s yield on invested assets and cost of funds and, in turn, the Partnership’s ability to make distributions or payments to its shareholders.  While the Partnership has not experienced any significant credit losses, in the event of a significant rising interest rate environment and/or economic downturn, defaults could increase and result in losses to the Partnership which adverselyaffects its operating results and liquidity.  

There have been no material changes in Quantitative and Qualitative disclosures in 2005 from the disclosures included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2004.  Reference is made to Item 7 included in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2004 and the caption “Interest Rate Risk and Sensitivity Analysis” under Item 2 of this Quarterly Report on Form 10-Q.

**Item 4.  Controls and Procedures**

|        | (a)    | *Evaluation of disclosure controls and procedures.*The Partnership’s Chief Executive Officer and its Chief Financial Officer, after evaluating the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this quarterly report, have concluded that the Partnership’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Partnership in the reports that it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and ExchangeCommission. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|  | (b) | *Changes in internal controls over financial reporting.*There was no change in the Partnership’s internal control over financial reporting that occurred during the period covered by this quarterly report that has materially affected, or is reasonably likely to materially affect, the Partnership’s internal control over financial reporting. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Part II.     OTHER INFORMATION**

**Item 1.     Legal Proceedings**

Not applicable.  

**Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds**

The following table summarizes the share repurchases during the three-month period ended September 30, 2005:

| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | ** **        |   |   | ** **         |   |   | **Total**            |   |   | ** **           |   |
|------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------|--------|--------|--------------------|--------|--------|----------------------|--------|--------|----------------------|--------|
| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | ** **        |   |   | ** **         |   |   | **Number of**        |   |   | **Maximum**          |   |
| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | ** **        |   |   | ** **         |   |   | **Units**            |   |   | **Number of**        |   |
| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | **Total**         |   |   | ** **         |   |   | **Purchased as**     |   |   | **Units that May**   |   |
| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | **Number of**     |   |   | **Average**        |   |   | **Part of Publicly** |   |   | **Yet Be Purchased** |   |
| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | **Units**         |   |   | **Price Paid Per** |   |   | **Announced Plans**  |   |   | **Under the Plans**  |   |
| ** ** |   |   | ** **                                                                                                                                                                                                                          |   |   | **Purchased (A)** |   |   | **Unit**           |   |   | **or Programs**      |   |   | **or Programs**      |   |
|       |   |   |                                                                                                                                                                                                                                |   |        |                   |   |        |                    |   |        |                      |   |        |                      |   |
| **2005:**  |   |   |                                                                                                                                                                                                                                |   |   |              |   |   |               |   |   |                 |   |
| July       |   |   | —                                                                                                                                                                                                                              |   | $      | —            |   |   | —             |   |   | 762,000              |   |
| August     |   |   | —                                                                                                                                                                                                                              |   | $      | —            |   |   | —             |   |   | 762,000              |   |
| September  |   |   | —                                                                                                                                                                                                                              |   | $      | —            |   |   | —             |   |   | 762,000              |   |
|       |   |   |                                                                                                                                                                                                                                |   |        |                   |   |        |                    |   |        |                      |   |        |                      |   |
|       |   |   | Total                                                                                                                                                                                                                               |   |   | —            |   | $      | —             |   |   | —               |   |   | 762,000              |   |
|       |   |   |                                                                                                                                                                                                                                |   |        |                   |   |        |                    |   |        |                      |   |        |                      |   |
|       |   |   |                                                                                                                                                                                                                                |   |   |              |   |   |               |   |   |                 |   |   |                 |   |
|       | (A)    |   | Represent Common Partnership    Units that relate to Common Shares cancelled by the Company upon vesting    of restricted Common Shares previously awarded to Company employees, in satisfaction    of tax withholding obligations. |

**Item 3.     Defaults Upon Senior Securities**

Not applicable.

**Item 4.     Submission of Matters to a Vote of Security Holders**

Not applicable.

**Item 5.     Other Information**

Not applicable.

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**Item 6.     Exhibits**

**(a)  Exhibits**

| 2.1    |   |   |        |   |   | Agreement and Plan of Merger dated as of October 3, 2005, by and among Brandywine, Brandywine Operating Partnership, Merger Sub I, L.P., Merger Sub, Prentiss, and Prentiss Acquisition Partners (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005) |   |
|--------|--------|--------|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 3.1    |   |   |        |   |   | Articles of Amendment to Declaration of Trust of Brandywine (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                                                                                                                      |   |
| 10.2   |   |   |        |   |   | Voting Agreement dated as of October 3, 2005 among Brandywine Realty Trust, Brandywine Operating Partnership and Michael V. Prentiss (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                                             |   |
| 10.3   |   |   |        |   |   | Voting Agreement dated as of October 3, 2005 among Brandywine Realty Trust, Brandywine Operating Partnership and Thomas F. August (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                                                |   |
| 10.4   |   |   |        |   |   | Master Agreement dated as of October 3, 2005 by and between Brandywine Operating Partnership, L.P. and The Prudential Insurance Company of America (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                               |   |
| 10.5   |   |   |   |   |   | Asset Purchase Agreement dated as of October 3, 2005 between Prentiss and The Prudential Insurance Company of America (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                                                            |   |
| 10.6   |   |   |   |   |   | Registration Rights Agreement (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                                                                                                                                                    |   |
| 12.1   |   |   |        |   |   | Statement re Computation of Ratios                                                                                                                                                                                                                                                                     |   |
| 31.1   |   |   |        |   |   | Certification Pursuant to 13a-14 under the Securities Exchange Act of 1934                                                                                                                                                                                                                             |   |
| 31.2   |   |   |        |   |   | Certification Pursuant to 13a-14 under the Securities Exchange Act of 1934                                                                                                                                                                                                                             |   |
| 32.1   |   |   |        |   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                 |   |
| 32.2   |   |   |        |   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                                                                                 |   |
| 99.1   |   |   |   |   |   | Financing Commitment Letter from JP Morgan Chase bank, N.A. and J.P. Morgan Securities, Inc. (incorporated by reference to Brandywine’s Current Report on Form 8-K filed on October 4, 2005)                                                                                                     |   |
|   |   |   |   |   |   |                                                                                                                                                                                                                                                                                                   |   |

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SIGNATURES OF REGISTRANT

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BRANDYWINE OPERATING PARTNERSHIP, L.P. (Registrant)

BRANDYWINE REALTY TRUST, as general partner

| Date: November 14, 2005 |   |  By**:** /s/ Gerard H. Sweeney                         |
|-------------------------|--------|-------------------------------------------------------------|
|                    |   |                                                             |
|                    |   | Gerard H. Sweeney, President and Chief    Executive Officer |
|                    |   |  (Principal Executive Officer)                         |

| Date: November 14, 2005 |   |  By**:** /s/ Christopher P. Marr                                     |
|-------------------------|--------|---------------------------------------------------------------------------|
|                    |   |                                                                           |
|                    |   | Christopher P. Marr, Senior Vice President    and Chief Financial Officer |
|                    |   |  (Principal Financial Officer)                                       |

| Date: November 14, 2005 |   |  By**:** /s/ Timothy M. Martin                                       |
|-------------------------|--------|---------------------------------------------------------------------------|
|                    |   |                                                                           |
|                    |   | Timothy M. Martin, Vice President-Finance    and Chief Accounting Officer |
|                    |   | (Principal Accounting Officer)                                            |

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