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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington, D.C. 20549</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8-K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Pursuant To Section 13 or 15(d)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>of the Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>Date
  of Report (Date of earliest event reported): August 28, 2006</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><font size=5><b>B<small>RANDYWINE</small> R<small>EALTY</small> T<small>RUST</small></b></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of issuer as specified in charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

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                    <td align=center valign=top width="280"><b><font size=2>Maryland</font></b><br>
<font size=2>(State or Other</font><br>
<font size=2>Jurisdiction</font><br>
<font size=2>of Incorporation or</font><br>
<font size=2>Organization)</font><br></td>
        <td align=center valign=top   width="280"><b><font size=2>1-9106</font></b><br>
            <font size=2>(Commission</font><br>
<font size=2>file</font><br>
<font size=2>number)</font><br>
<font size=2>&nbsp;</font><br></td>
        <td align=center valign=top  width="280"><b><font size=2>23-2413352</font></b><br>
            <font size=2>(I.R.S. Employer</font><br>
<font size=2>Identification</font><br>
<font size=2>Number)</font><br>
<font size=2>&nbsp;</font><br></td>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>555 East Lancaster Avenue, Suite 100</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Radnor, Pennsylvania 19087</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Address of principal executive offices)</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>(610) 325-5600</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Registrant&#146;s telephone number, including area code)</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item 1.01</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Entry into a Material Definitive Agreement.</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>On August 28, 2006, the Compensation Committee of our Board of Trustees adopted a long-term incentive compensation program (which we refer to as the outperformance program). We will make payments (in the form of common shares) to executive-participants under the outperformance program only if our total shareholder return exceeds percentage hurdles established under the outperformance program. The dollar value of any payments will depend on the extent to which our performance exceeds the hurdles. We describe the outperformance program below and have attached a copy of the outperformance program as an exhibit to this Current Report. We established the outperformance program under our Amended and Restated 1997 Long-Term Incentive Plan (which we refer to below as the 1997 Plan), most recently approved by our shareholders on May 2, 2005. We attached a complete copy of the 1997 Plan as an exhibit to
our Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Our Compensation Committee adopted the outperformance program following extensive analysis of long-term, performance-based, executive compensation programs. In its analysis, the Compensation Committee considered data and recommendations of an independent compensation consulting firm, alternative approaches to compensation both within and outside of the REIT industry and our current short and long-term compensation arrangements. The Compensation Committee believes that the outperformance program will enhance our compensation goals. These goals include: (1) attracting best-in-class talent, (2) retaining our key leaders, (3) providing incentives for future performance and (4) aligning the long-term interests of our executives with the interests of our shareholders.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>In brief, if our total shareholder return (share price appreciation plus cash dividends) during a three-year measurement period exceeds either of two hurdles (with one hurdle keyed to the greater of a fixed percentage and an industry-based index, and the other hurdle keyed to a fixed percentage), then we will fund an incentive compensation pool in accordance with a formula and make pay-outs from the compensation pool in the form of vested and &#147;restricted&#148; common shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>We explain the outperformance program through the following questions and answers and encourage you to review the complete outperformance program.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>1. </font><i><font size=2>How will the dollar value of the compensation pool be determined?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>The dollar value of the compensation pool will depend on the extent to which our total shareholder return between August 1, 2006 and July 31, 2009 exceeds either or both of two hurdles, with the three-year measurement period subject to early termination, and the hurdles subject to pro rata adjustment, if we undergo a change of control prior to July 31, 2009.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>One
  hurdle (which we refer to below as the &#147;combined&#148; hurdle) will be
  met if our total shareholder return over the three-year measurement period exceeds
  the greater of 27% or 100% of the Morgan Stanley REIT Index (the &#147;Index&#148;)
  return during the measurement period. The amount that we would fund into the
  compensation pool if our total shareholder return exceeds the combined hurdle
  would be derived from a formula that reflects the excess of our total shareholder
  return over the higher component in the combined hurdle and would be limited
  to $41,250,000, representing 75% of the outperformance program, plus dividend
  equivalents.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>The
  other hurdle (which we refer to below as the &#147;single&#148; hurdle) will
  be met if our total shareholder return over the three-year measurement period
  exceeds 30%. The amount that we would fund into the compensation pool if our
  total shareholder return exceeds the single hurdle would also be derived from
  a formula that reflects the excess of our total shareholder return over the
  hurdle and would be limited to $13,750,000, representing 25% of the outperformance
  program, plus dividend equivalents.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>To determine the amount that we would fund into the compensation pool, we would first calculate the &#147;excess value&#148; attributable to the excess of our total shareholder return over one or both of the hurdles. If our total shareholder return does not exceed either hurdle then no credit will be made to the compensation pool on account of such hurdle. After we have calculated the excess value, we would then allocate 5% of the excess value to the compensation pool (i.e., credit an amount into the compensation pool equal to 5% of the excess value). If our total shareholder return exceeds 36%, then up to an additional 3% of the value in excess of 36% may be added to the pool.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>2. </font><i><font size=2>Is there a maximum amount that may be paid under the outperformance program?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Yes. The maximum amount payable under the outperformance program is limited to $55.0 million, plus dividend equivalents. No more than $41,250,000, plus dividend equivalents, may be payable on account of the portion of the program that is based on the combined hurdle, and no more than $13,750,000, plus dividend equivalents, may be payable on account of the portion of the program that is based on the single hurdle.</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>3. </font><i><font size=2>How will we make payments under the outperformance program?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Payments under the outperformance program will be made in common shares. Twenty percent (20%) of the common shares issued to each award recipient will be fully vested on the date of issuance, and the remaining eighty percent (80%) will vest in two equal annual installments on each of the first and second anniversaries of the issuance date, subject to accelerated vesting upon a change of control. The holder of unvested common shares will be entitled to vote, and receive dividends on, the issued common shares prior to the vesting of the shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>4. W</font><i><font size=2>ill award recipients be paid dividend equivalents</font></i><font size=2> </font><i><font size=2>prior to any payments under the outperformance program?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>No. However, upon issuance of common shares to participants at the end of the measurement period, we will pay to the participants (through the issuance of common shares) an amount equal to the amount of dividends that would have been paid on such shares had such shares been outstanding and held by such participants during the measurement period.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>5. </font><i><font size=2>Under what circumstances would the measurement period terminate early?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>The
  measurement period would terminate prior to July 31, 2009 if we are acquired
  or otherwise undergo a &#147;change of control.&#148; In such event, the hurdles
  would be adjusted downward proportionately based upon the number of months that
  elapsed within the measurement period prior to the change of control. </font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>In
     the event that we achieve a total shareholder return for at least three
    hundred
  sixty (360) consecutive calendar days during the measurement period such that
     the compensation pool would have been funded at the aggregate maximum amount

  of $55 million if each day in such three hundred sixty (360) day period had
     been the end of the measurement period, then each participant will be entitled

  to receive common shares that have a value equal to the product of such participant&#146;s
   award percentage multiplied by $27.5 million, and the maximum amount that
  we
  would thereafter be obligated to fund into the compensation pool at the end
   of the measurement period would be reduced on account of such &#147;early&#148;
  achievement. In the event acceleration occurs, the remaining maximum available
   amount that may be earned under the combined hurdle would be $20,625,000,
  plus
  dividend equivalents, and the remaining maximum available amount under the
  single hurdle would be $6,875,000, plus dividend equivalents. Notwithstanding
  a participant&#146;s entitlement to common shares on account of such &#147;early&#148;
  achievement, we would not issue the shares to the participant until July 31,
   2009 (or the date of a change of control) and the issuance of the common shares

  would be subject to the same vesting schedule that would apply in the absence
   of such early achievement.</font></p>

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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>6. </font><i><font size=2>What happens if an award recipient dies or becomes disabled?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Upon termination of an award recipient&#146;s employment with us due to death or disability, the recipient&#146;s award will vest in full and the recipient or the recipient&#146;s legal representative will be entitled to payment on account of the award on the same terms as if the recipient had not died or become disabled.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>7. </font><i><font size=2>Who administers the outperformance program?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>The outperformance program will be administered by our Compensation Committee. The Compensation Committee is comprised exclusively of independent, non-management Trustees.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>8. </font><i><font size=2>Who may receive awards under the outperformance program?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Only our employees are eligible to receive awards under the outperformance program. The Compensation Committee will determine award recipients and their respective percentages of the compensation pool</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>9. </font><i><font size=2>Have awards been granted under the outperformance program?</font></i></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Yes. Upon adoption of the outperformance program, the Compensation Committee allocated an aggregate of 89.9% of the compensation pool, including 30% to Gerard H. Sweeney, our President and Chief Executive Officer. The percentages allocated to each of our other executive officers are presented in the following table. The Compensation Committee retains authority to allocate the balance of the compensation pool and to re-allocate any awards that recipients may forfeit.</font></p>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=2>Name of Additional Executive</font></b><br> <b><font size=2>Officer Award Recipients</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=2>Allocation Percentage</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Brad A. Molotsky</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4.5</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>George D. Sowa</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4.5</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Robert K. Wiberg</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>4.5</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Michael J. Cooper</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Daniel K. Cushing</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>H. Jeffrey DeVuono</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
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<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Christopher M. Hipps</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Gregory S. Imhoff</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Timothy M. Martin</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>William D. Redd</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Anthony S. Rimikis</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>David Ryder</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Philip M. Schenkel</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>3.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:8.65pt;text-indent:-8.65pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>Other Recipients as a Group</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>12.4</font></p> </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=2>%</font></p> </td> </tr></table>
</div>


<p align="center"><Font size="2" face="serif">-5-</font></p>

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<div align=left>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="10%" valign=top style='padding:12.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Item 8.01</font></b></p> </td>

        <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><b><font size=2>Other Information</font></b></p> </td> </tr></table>
</div>




<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>As
  we indicated in a Form 8-K that we filed in February 2006, our Board authorized
  the sale of an approximately 141,724 square foot office building located at
  101 Paragon Drive in Montvale, New Jersey in which we held a fifty percent economic
  interest. The remaining interest in this property was held by one of our Trustees,
  Donald E. Axinn. As indicated in the February Form 8-K, closing of this sale
  was scheduled to occur in August 2006. On August 31, 2006, the sale was completed
  on terms consistent with those described in the February Form 8-K.</font></p>



<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="10%" valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2.0pt;margin-bottom:0pt;'><font size=1><b>&nbsp;</b></font><b><font size=2>Item
          9.01.</font></b></p>
      </td>
      <td valign=top style='padding:12.0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2><b>Financial
          Statements and Exhibits</b></font></p>

      </td>
    </tr>
  </table>
</div>




<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>


  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="40" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Exhibits</font></p>
      </td>
      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>&nbsp;<u></u></p>
      </td>
    </tr>
    <tr style='height:3.6pt;'>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>
        <hr noshade align="center" width="100%" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>&nbsp; </td>
    </tr>
    <tr style='height:3.6pt;'>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'> </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'></td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;' width="40">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>10.1</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>2006
          Long-Term Outperformance Compensation Program</font></p>
      </td>
    </tr>
  </table>
</div>


<p align="center"><Font size="2" face="serif">-6-</font></p>

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<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Signatures</font></b></p>

<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:left;'><font size=2>Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>

        <td width="49%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td width="2%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>B<small>RANDYWINE</small> R<small>EALTY</small> T<small>RUST</small></font></p> </td> </tr>
    <tr>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br>
          <font size=2>Date: September 1, 2006</font></p>
      </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>


      <td valign=bottom style='padding:0pt 0pt 0pt 0pt;' width="2%">
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>By:&nbsp;</font></p>
      </td>

        <td valign=bottom style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><br> <font size=2>/s/ Gerard H. Sweeney</font></p> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'>
<HR noshade width="100%" color="Gray" size="1"> </td> </tr>
    <tr>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>

        <td valign=top style='padding:0pt 0pt 0pt 0pt;'>

<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;'><font size=2>Gerard H. Sweeney</font><br> <font size=2>President and Chief Executive Officer</font></p> </td> </tr></table>
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<p align="center"><Font size="2" face="serif">-7-</font></p>
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<p style=' margin-bottom:0pt; margin-top:8pt; text-indent:10%;text-align:center;'><font SIZE=2>EXHIBIT INDEX</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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  <table border="0" cellspacing=0 cellpadding=0 width="100%" style=' border-collapse:collapse;'>
    <tr>
      <td width="14%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=2>Exhibit</font></b>
          <b><font size=2>No.</font></b></p>
      </td>
      <td width="2%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td width="85%" valign=bottom style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2.0pt;margin-bottom:0pt;'><b><font size=2>Description</font></b></p>
      </td>
    </tr>
    <tr style='height:3.6pt;'>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>
              <hr noshade align="center" width="100%" size="1">
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>&nbsp;</td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt;'>
        <hr noshade align="center" width="100%" size="1">
      </td>
    </tr>
    <tr>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;'><font size=2>10.1</font></p>
      </td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>&nbsp;</td>
      <td valign=top style='padding:0pt 0pt 0pt 0pt;'>
        <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-bottom:0pt;'><font size=2>2006
          Long-Term Outperformance Compensation Program</font></p>
      </td>
    </tr>
  </table>
</div>


<p align="center"><Font size="2" face="serif"></font></p>

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</HTML>
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{"company-data": {"conformed-name": "BRANDYWINE REALTY TRUST", "cik": "0000790816", "assigned-sic": "6798", "irs-number": "232413352", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-09106", "film-number": "061070803"}, "business-address": {"street1": "14 CAMPUS BLVD", "street2": "STE 100", "city": "NEWTOWN SQUARE", "state": "PA", "zip": "19073", "phone": "6103255600"}, "mail-address": {"street1": "TWO GREENTREE CENTRE", "street2": "SUITE 100", "city": "MARLTON", "state": "NJ", "zip": "08053"}, "former-company": {"former-conformed-name": "LINPRO SPECIFIED PROPERTIES", "date-changed": "19920703"}}
Prepared and filed by St Ives Financials
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant To Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date
  of Report (Date of earliest event reported): August 28, 2006
B
RANDYWINE
R
EALTY
T
RUST
(Exact name of issuer as specified in charter)
Maryland
(State or Other
Jurisdiction
of Incorporation or
Organization)
1-9106
(Commission
file
number)
23-2413352
(I.R.S. Employer
Identification
Number)
555 East Lancaster Avenue, Suite 100
Radnor, Pennsylvania 19087
(Address of principal executive offices)
(610) 325-5600
(Registrant's telephone number, including area code)
Item 1.01
Entry into a Material Definitive Agreement.
On August 28, 2006, the Compensation Committee of our Board of Trustees adopted a long-term incentive compensation program (which we refer to as the outperformance program). We will make payments (in the form of common shares) to executive-participants under the outperformance program only if our total shareholder return exceeds percentage hurdles established under the outperformance program. The dollar value of any payments will depend on the extent to which our performance exceeds the hurdles. We describe the outperformance program below and have attached a copy of the outperformance program as an exhibit to this Current Report. We established the outperformance program under our Amended and Restated 1997 Long-Term Incentive Plan (which we refer to below as the 1997 Plan), most recently approved by our shareholders on May 2, 2005. We attached a complete copy of the 1997 Plan as an exhibit to
our Quarterly Report on Form 10-Q for the quarter ended March 31, 2005.
Our Compensation Committee adopted the outperformance program following extensive analysis of long-term, performance-based, executive compensation programs. In its analysis, the Compensation Committee considered data and recommendations of an independent compensation consulting firm, alternative approaches to compensation both within and outside of the REIT industry and our current short and long-term compensation arrangements. The Compensation Committee believes that the outperformance program will enhance our compensation goals. These goals include: (1) attracting best-in-class talent, (2) retaining our key leaders, (3) providing incentives for future performance and (4) aligning the long-term interests of our executives with the interests of our shareholders.
In brief, if our total shareholder return (share price appreciation plus cash dividends) during a three-year measurement period exceeds either of two hurdles (with one hurdle keyed to the greater of a fixed percentage and an industry-based index, and the other hurdle keyed to a fixed percentage), then we will fund an incentive compensation pool in accordance with a formula and make pay-outs from the compensation pool in the form of vested and "restricted" common shares.
We explain the outperformance program through the following questions and answers and encourage you to review the complete outperformance program.
1.
How will the dollar value of the compensation pool be determined?
The dollar value of the compensation pool will depend on the extent to which our total shareholder return between August 1, 2006 and July 31, 2009 exceeds either or both of two hurdles, with the three-year measurement period subject to early termination, and the hurdles subject to pro rata adjustment, if we undergo a change of control prior to July 31, 2009.
One
  hurdle (which we refer to below as the "combined" hurdle) will be
  met if our total shareholder return over the three-year measurement period exceeds
  the greater of 27% or 100% of the Morgan Stanley REIT Index (the "Index")
  return during the measurement period. The amount that we would fund into the
  compensation pool if our total shareholder return exceeds the combined hurdle
  would be derived from a formula that reflects the excess of our total shareholder
  return over the higher component in the combined hurdle and would be limited
  to $41,250,000, representing 75% of the outperformance program, plus dividend
  equivalents.
The
  other hurdle (which we refer to below as the "single" hurdle) will
  be met if our total shareholder return over the three-year measurement period
  exceeds 30%. The amount that we would fund into the compensation pool if our
  total shareholder return exceeds the single hurdle would also be derived from
  a formula that reflects the excess of our total shareholder return over the
  hurdle and would be limited to $13,750,000, representing 25% of the outperformance
  program, plus dividend equivalents.
To determine the amount that we would fund into the compensation pool, we would first calculate the "excess value" attributable to the excess of our total shareholder return over one or both of the hurdles. If our total shareholder return does not exceed either hurdle then no credit will be made to the compensation pool on account of such hurdle. After we have calculated the excess value, we would then allocate 5% of the excess value to the compensation pool (i.e., credit an amount into the compensation pool equal to 5% of the excess value). If our total shareholder return exceeds 36%, then up to an additional 3% of the value in excess of 36% may be added to the pool.
2.
Is there a maximum amount that may be paid under the outperformance program?
Yes. The maximum amount payable under the outperformance program is limited to $55.0 million, plus dividend equivalents. No more than $41,250,000, plus dividend equivalents, may be payable on account of the portion of the program that is based on the combined hurdle, and no more than $13,750,000, plus dividend equivalents, may be payable on account of the portion of the program that is based on the single hurdle.
-3-
3.
How will we make payments under the outperformance program?
Payments under the outperformance program will be made in common shares. Twenty percent (20%) of the common shares issued to each award recipient will be fully vested on the date of issuance, and the remaining eighty percent (80%) will vest in two equal annual installments on each of the first and second anniversaries of the issuance date, subject to accelerated vesting upon a change of control. The holder of unvested common shares will be entitled to vote, and receive dividends on, the issued common shares prior to the vesting of the shares.
4. W
ill award recipients be paid dividend equivalents
prior to any payments under the outperformance program?
No. However, upon issuance of common shares to participants at the end of the measurement period, we will pay to the participants (through the issuance of common shares) an amount equal to the amount of dividends that would have been paid on such shares had such shares been outstanding and held by such participants during the measurement period.
5.
Under what circumstances would the measurement period terminate early?
The
  measurement period would terminate prior to July 31, 2009 if we are acquired
  or otherwise undergo a "change of control." In such event, the hurdles
  would be adjusted downward proportionately based upon the number of months that
  elapsed within the measurement period prior to the change of control.
In
     the event that we achieve a total shareholder return for at least three
    hundred
  sixty (360) consecutive calendar days during the measurement period such that
     the compensation pool would have been funded at the aggregate maximum amount

  of $55 million if each day in such three hundred sixty (360) day period had
     been the end of the measurement period, then each participant will be entitled

  to receive common shares that have a value equal to the product of such participant's
   award percentage multiplied by $27.5 million, and the maximum amount that
  we
  would thereafter be obligated to fund into the compensation pool at the end
   of the measurement period would be reduced on account of such "early"
  achievement. In the event acceleration occurs, the remaining maximum available
   amount that may be earned under the combined hurdle would be $20,625,000,
  plus
  dividend equivalents, and the remaining maximum available amount under the
  single hurdle would be $6,875,000, plus dividend equivalents. Notwithstanding
  a participant's entitlement to common shares on account of such "early"
  achievement, we would not issue the shares to the participant until July 31,
   2009 (or the date of a change of control) and the issuance of the common shares

  would be subject to the same vesting schedule that would apply in the absence
   of such early achievement.
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6.
What happens if an award recipient dies or becomes disabled?
Upon termination of an award recipient's employment with us due to death or disability, the recipient's award will vest in full and the recipient or the recipient's legal representative will be entitled to payment on account of the award on the same terms as if the recipient had not died or become disabled.
7.
Who administers the outperformance program?
The outperformance program will be administered by our Compensation Committee. The Compensation Committee is comprised exclusively of independent, non-management Trustees.
8.
Who may receive awards under the outperformance program?
Only our employees are eligible to receive awards under the outperformance program. The Compensation Committee will determine award recipients and their respective percentages of the compensation pool
9.
Have awards been granted under the outperformance program?
Yes. Upon adoption of the outperformance program, the Compensation Committee allocated an aggregate of 89.9% of the compensation pool, including 30% to Gerard H. Sweeney, our President and Chief Executive Officer. The percentages allocated to each of our other executive officers are presented in the following table. The Compensation Committee retains authority to allocate the balance of the compensation pool and to re-allocate any awards that recipients may forfeit.
Name of Additional Executive
Officer Award Recipients
Allocation Percentage
Brad A. Molotsky
4.5
%
George D. Sowa
4.5
%
Robert K. Wiberg
4.5
%
Michael J. Cooper
3.4
%
Daniel K. Cushing
3.4
%
H. Jeffrey DeVuono
3.4
%
Christopher M. Hipps
3.4
%
Gregory S. Imhoff
3.4
%
Timothy M. Martin
3.4
%
William D. Redd
3.4
%
Anthony S. Rimikis
3.4
%
David Ryder
3.4
%
Philip M. Schenkel
3.4
%
Other Recipients as a Group
12.4
%
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Item 8.01
Other Information
As
  we indicated in a Form 8-K that we filed in February 2006, our Board authorized
  the sale of an approximately 141,724 square foot office building located at
  101 Paragon Drive in Montvale, New Jersey in which we held a fifty percent economic
  interest. The remaining interest in this property was held by one of our Trustees,
  Donald E. Axinn. As indicated in the February Form 8-K, closing of this sale
  was scheduled to occur in August 2006. On August 31, 2006, the sale was completed
  on terms consistent with those described in the February Form 8-K.
Item
          9.01.
Financial
          Statements and Exhibits
Exhibits
10.1
2006
          Long-Term Outperformance Compensation Program
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Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
B
RANDYWINE
R
EALTY
T
RUST
Date: September 1, 2006
By:
/s/ Gerard H. Sweeney
Gerard H. Sweeney
President and Chief Executive Officer
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EXHIBIT INDEX
Exhibit
No.
Description
10.1
2006
          Long-Term Outperformance Compensation Program