What changed in this filing

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Item 1. Business

2021-02-24 compared with 2020-03-02 · 59 added, 19 removed, 81 unchanged (49% of the section changed)

21 unchanged sentences

McLean, Virginia;

Washington, D.C.;

Camden, New Jersey;

Mount Laurel, New Jersey;

Richmond, Virginia;

Wilmington, Delaware;

and Austin, Texas.

As of December 31, 2019 , we had 337 full-time employees.

Our principal executive offices are located at 2929 Walnut Street, Suite 1700, Philadelphia, PA 19104, our telephone number is (610) 325-5600 and our website is www.brandywinerealty.com.

11 unchanged sentences

In some instances, joint venture partnerships provide us with additional local market or product type expertise.

For information regarding joint ventures, see Note 4, ''Investment in Unconsolidated Real Estate Ventures ,” to our Consolidated Financial Statements.

For information regarding our joint ventures, see Note 4, ''Investment in Unconsolidated Real Estate Ventures,” to our Consolidated Financial Statements.

Developments/Redevelopments

Our regular interaction with tenants and other market participants keep us current on innovations in workplace layout and smart living.

We leverage this information to identify properties primed for development or redevelopment to meet these demands and realize value.

We leverage this information to identify properties primed for development or redevelopment to meet tenant demands and realize value.

The expertise and relationships that we have built from managing complex construction projects allow us to add new assets to our portfolio and renovate existing assets in our portfolio.

12 unchanged sentences

• to develop and opportunistically acquire high-quality office properties at attractive yields in markets that we expect will experience economic growth and where we can achieve operating efficiencies;

to monetize or deploy our land inventory for development of high-quality office properties, or rezone from office/industrial to residential, retail and hotel to align with market and demand shifts as appropriate;

to control development sites, including sites under option to acquire, that could support approximately 14.3 million square feet of new office, retail and residential development within our core markets;

• to monetize or deploy our land inventory for development of high-quality office properties, or rezone from office/industrial to life science/lab, residential, retail and hotel to align with market and demand shifts as appropriate;

• to control development sites, including sites under purchase options, that could support new office, life science/lab, retail and residential development within our core markets;

• to capitalize on our redevelopment expertise to selectively develop, redevelop and reposition properties in desirable locations that other organizations may not have the resources to pursue;

13 unchanged sentences

We believe that where possible, it is best to operate with a strong base of properties in order to benefit from the personnel allocation and the market strength associated with managing multiple properties in the same market.

We also intend to selectively dispose

of properties and redeploy capital if we determine a property cannot meet our long term earnings growth expectations.

We also intend to

selectively dispose of properties and redeploy capital if we determine a property cannot meet our long term earnings growth expectations.

We believe that recycling capital is an important aspect of maintaining the overall quality of our portfolio.

10 unchanged sentences

Additionally, our ability to compete depends upon trends in the economies of our markets, investment alternatives, financial condition and operating results of current and prospective tenants, availability and cost of capital, construction and renovation costs, land availability, our ability to obtain necessary construction approvals, taxes, governmental regulations, legislation and population trends.

Human Capital Resources

As of December 31, 2020, we had approximately 341 employees.

We are focused on creating a challenging, enriching, respectful, diverse, inclusive, collaborative and rewarding work environment for our employees whom we consider to be among our most valuable assets.

We offer the following policies and programs which we believe are illustrative of our continued commitment to our employees:

• A compensation program and benefits package which we consider to be competitive among our peers.

• An extensive Employee Safety Manual, and thoughtful operational protocols and other measures, which prioritize the health, safety and well-being of our employees.

• Our promotion of diversity and inclusion in our hiring practices.

◦ In 2020, approximately 33% of all new hires were females and approximately 58% of all new hires were ethnic minorities.

• Regular training and career development opportunities and a tuition reimbursement program.

• The regular assessment of the engagement, satisfaction and retention of our employees.

• Programs such as internally organized affinity groups which are intended to foster an atmosphere of collaboration and inclusion.

Environmental, Social, and Corporate Governance

As one of the largest, publicly traded real estate companies in the United States, we seek to provide exceptional work environments for our tenants.

Our current and recent developments and redevelopments reflect our commitment to energy efficient buildings with sustainable operating practices, as we seek to encourage the health and productivity of our tenants, while lowering operating costs and identifying revenue opportunities.

We are an industry leader in all areas of sustainability with a company-wide pledge to all three pillars of environmental, social, and corporate governance.

Our environmental programs include over 5.4 million square feet of Fitwell Certified buildings including our FMC Tower which is the very first WELL Core certified project at the Platinum level globally as well as the first WELL V2 project in the United States.

In addition, our year over year reductions of all key indices includes a reduction of water, energy, and greenhouse gas by 11%, 0.06%, and 1.98%, respectively, and our waste diversion program prevented nearly 38% of our gross trash production from reaching a landfill in 2019.

Our social programming garnered a perfect score in our 2019 GRESB filing and demonstrates our commitment to stewardship and direct corporate involvement in the communities and neighborhoods we serve.

One of the many highlights of our social vision is our Construction Apprentice Preparatory Program or CAPP which sponsors a 15-week class-based program to prepare minority candidates from the local area for entrance exams and jobs with Philadelphia union construction firms;

as of December 31, 2019, 48 individuals have graduated the CAPP and been placed.

Our corporate governance platform is the bedrock for sound decision making and promotes transparency coupled with a focus on the long-term interests of our shareholders.

This led to an industry leading ISS Governance Quality Score of 1, in 2019, representing the lowest shareholder risk and the highest score that ISS awards.

In connection with our goal of achieving the highest principles of environment, social, and governance (ESG) standards, in 2020, we released our inaugural comprehensive Global Reporting Initiative (GRI) aligned Corporate Social Responsibility Report, which set forth 20 Goals and Key Performance Indicators aligned with the U.N.

Sustainable Development Goals and the early stages of our strategy to manage climate risk in alignment with the Task Force on Climate-Related Financial

Disclosures (TCFD).

In addition, we reset our reduction targets for energy, greenhouse gas emissions and water consumption to 15% by 2025 over our 2018 baseline.

The following tables provide our consumption and progress as of year-end 2019 on energy, water, and greenhouse gas emission reductions over our 2018 baseline.

This data represents energy and water consumption for Brandywine owned and managed buildings where data was available.

Data for the year ended 2020 is not yet available and is expected to be included in our annual Global Real Estate Sustainability Benchmark (“GRESB”) submission in the second quarter of 2021.

Energy Consumption:

Year Energy Consumption Data Coverage as a % of Floor Area (a)

Total Energy Consumed by Floor Area with Data Coverage (MWh)

% of Energy Generated from Renewable Sources (b)

Same Store change in Energy Consumption of Floor Area with Data Coverage (c)

% of Eligible Portfolio that has Obtained an Energy Rating and is Certified to ENERGY STAR (d)

2018 89 % 447,814 49 % N/A 58 %

2019 90 % 405,446 49 % (10) % 35 %

Water Consumption:

Year Water Withdrawal Data Coverage as a % of Total Floor Area (a) Total water Withdrawn by Portfolio (m3) Same Store Change in Water Withdrawn for Floor Area with data Coverage (e)

2018 86 % 1,037,678 N/A

2019 88 % 1,036,805 — %

GHG Emissions:

Year Scope 1 & 2 GHG Data Coverage as % of Total Floor Area (f)

Scope 1 & 2 GHG Emissions (Tonnes CO2)

Same Store Change in Scope 1 & 2 GHG Emissions Data (g)

2018 88 % 145,652 N/A

2019 89 % 133,563 (8) %

(a) Represents the percentage of square footage where consumption data was obtained for the portfolio for the calendar year .

(b) Percentage of energy generated from renewable sources represents purchasing of green power direct from utilities to offset energy usage in deregulated energy markets.

(c) Same Store change in energy consumption compares usage only for the buildings with data available in both 2018 and 2019.

(d) Reduction is substantially the result of the Commercial Buildings Energy Consumption Survey updated modeling in 2019 and the resulting industry-wide drop in ENERGY STAR scores.

(e) Same Store change in water consumption compares usage only for the buildings with data available in both 2018 and 2019.

(f) Scope 1 emissions are calculated by measuring the on-site fuel consumption and combustion (e.g., natural gas consumption, company-owned vehicles), and Scope 2 emissions are calculated by measuring purchased electricity that is generated from off-site sources for the percentage of square footage where data was obtained for the portfolio for the calendar year.

(g) Same Store change in Scope 1 & 2 emissions is based on only comparing the emissions for buildings where comparable data was available for both 2018 and 2019.

In 2020, we earned the highest-level Governance score from ISS, continued to maintain an A rating from MSCI ESG Research, received our sixth annual GRESB Green Star ranking, and achieved Green Lease Leader’s Gold recognition from the Department of Energy and Institute for Market Transformation.

We were also recognized as the most committed building owner in the Philadelphia 2030 District initiative to achieve substantial reduction in energy use by the year 2030.

We have 21.9 million square feet of green building certifications across our portfolio, including the first UL Verified Healthy Building IAQ Verification Mark certified building in Philadelphia.

With all the challenges of 2020, we believe we responded to the COVID-19 pandemic with proactive plans for a safe and seamless “return to work” for our tenants and by giving back to the many needs of the local community.

Our volunteer efforts and financial contributions included over $20,000 collected by employees and matched by us to support 16 third-party employees in our extended family of vendors who were impacted by furloughs and layoffs.

Through a meals program in

partnership with several of our food and beverage tenants, we funded over 36,000 meals to Philadelphians in need.

We also donated $350,000 to the Enterprise Center to launch the Grow Philadelphia Small Business COVID-19 Resilience Fund, and provided $200,000 to the African American Chamber of Commerce to make low-interest loans available to Chamber members impacted by the COVID-19 pandemic and social unrest.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business