BioMed Realty Trust Inc - FORM 8-K - EX-99.2

Attached files

file	filename
8-K - FORM 8-K - BioMed Realty Trust Inc	a55159e8vk.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	a55159exv99w1.htm

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA
DECEMBER 31, 2009


BioMed Realty Trust, Inc.	Corporate Communications Contact	www.biomedrealty.com
17190 Bernardo Center Drive	Rick Howe	(858) 485-9840 phone
San Diego, CA 92128	Director, Corporate Communications	(858) 485-9843 fax
	richard.howe@biomedrealty.com

TABLE OF CONTENTS
DECEMBER 31, 2009


	Page
Fourth Quarter Highlights		3
Investor Information		4
Equity Research Coverage		5
Financial and Operating Highlights		6
Capitalization Summary		7
Property Portfolio Summary		8
Consolidated Balance Sheets		9
Consolidated Statements of Income		10
FFO and AFFO		11
Reconciliation of EBITDA		12
Reconciliation of Net Operating Income		13
Interest Coverage Ratios		14
Fixed Charge Coverage Ratios		15
Debt Summary		16
Debt Analysis		17
Debt Maturities		18
Common and Preferred Stock Data		19
Market Summary		20
Property Listing — Consolidated Portfolio		21-22
Development / Redevelopment / Pre-Development / Land Parcels		23
Property Listing — Unconsolidated Partnerships		24
Lease Expirations		25
Expirations by Market		26
10 Largest Tenants		27
Same Property Analysis		28
Acquisitions		29
Leasing Activity		30
Tenant Improvements and Leasing Commissions		31
Non-GAAP Financial Measure Definitions		32
Property Definitions		33

This Supplemental Operating and Financial Data package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, you should exercise caution in interpreting and relying on these statements as they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, general risks affecting the real estate industry, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, competition from other developers, owners and operators of real estate, adverse economic or real estate developments in the life science industry or the company’s target markets, the uncertainty of real estate development, construction and acquisition activity, the ability to complete or integrate acquisitions and developments successfully, the availability and terms of financing and the use of debt to fund acquisitions and developments, the ability to refinance indebtedness as it comes due, downturns in the national and local economies, increases in interest rates and volatility in securities markets, potential liability for uninsured losses and environmental contamination, the company’s dependence on key personnel whose continued service is not guaranteed, regulatory and tax law changes and other risks and uncertainties detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All dollar amounts shown in this report are unaudited.

This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to buy securities of BioMed Realty Trust, Inc. Any offers to sell or solicitations to buy securities of BioMed Realty Trust, Inc. shall be made only by means of a prospectus approved for that purpose.

FOURTH QUARTER HIGHLIGHTS
DECEMBER 31, 2009

Fourth Quarter Highlights

•		Increased total revenues for the fourth quarter to $88.2 million, up 6.3% from $83.0 million for the same period in 2008.

•		Generated funds from operations (FFO) for the quarter of $0.28 per diluted share, or $28.0 million. Excluding the impact of the write-off of deferred loan fees and debt discount associated with the repurchase of exchangeable senior notes during the quarter, FFO would have been $0.31 per diluted share.

•		Executed 17 leasing transactions representing approximately 589,000 square feet:

	•		Eleven new leases totaling approximately 326,000 square feet.

	•		Six leases amended to extend their terms, totaling approximately 263,000 square feet.

•		Acquired three land parcels totaling approximately 36 acres adjacent to the company’s The Landmark at Eastview campus in Tarrytown, New York for approximately $2.5 million.

•		Invested approximately $10.3 million in the McKellar Court joint venture to repay the joint venture’s existing mortgage on the McKellar Court property in San Diego, California, of which the Company’s pro rata share was approximately $2.1 million.

•		Raised approximately $7.3 million in net proceeds from the sale of 547,900 shares of common stock under the company’s continuous offering program established in September 2009.

•		Increased aggregate borrowing capacity on the company’s unsecured line of credit by $120 million to $720 million.

•		Completed cash tender offer for $61.3 million aggregate principal amount of exchangeable senior notes.

•		Promoted Karen A. Sztraicher to Senior Vice President, Asset Management.

•		Increased the company’s common stock dividend by 27.3% over its third quarter 2009 dividend to $0.14 per share of common stock, which is equivalent to an annualized dividend of $0.56 per common share.

About BioMed Realty Trust

BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused on Providing Real Estate to the Life Science Industry^®. The company’s tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty Trust owns or has interests in 69 properties, representing 112 buildings with approximately 10.5 million rentable square feet. The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey, which have well-established reputations as centers for scientific research. Additional information is available at www.biomedrealty.com.

INVESTOR INFORMATION
DECEMBER 31, 2009


Company Information

Corporate Headquarters	Trading Symbols	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	BNY Mellon Shareowner Services	New York Stock Exchange
San Diego, CA 92128	BMR PrA	480 Washington Boulevard
(858) 485-9840		Jersey City, NJ 07310-1900
(858) 485-9843 (fax)		(877) 296-3711

Please visit our corporate website at: www.biomedrealty.com


Board of Directors	Senior Management
Alan D. Gold	Alan D. Gold	Karen A. Sztraicher
Chairman	Chairman and Chief Executive Officer	Senior Vice President,
		Asset Management

Barbara R. Cambon	R. Kent Griffin, Jr.
	President, Chief Operating Officer and	John P. Bonanno
Edward A. Dennis, Ph.D.	Chief Financial Officer	Vice President, Development

	Gary A. Kreitzer	Jonathan P. Klassen
Richard I. Gilchrist	Executive Vice President,	Vice President,
	General Counsel and Director	Legal and Secretary

Gary A. Kreitzer	Matthew G. McDevitt	Greg N. Lubushkin
	Executive Vice President,	Vice President,
Theodore D. Roth	Acquisitions and Leasing	Chief Accounting Officer

	William A. Gartner	Kevin M. Simonsen
M. Faye Wilson	Senior Vice President,	Vice President,
	Real Estate — Cambridge	Real Estate Counsel

Tentative Schedule for Quarterly Results


First Quarter 2010		April 28, 2010
Second Quarter 2010		July 28, 2010
Third Quarter 2010		November 3, 2010
Fourth Quarter 2010		February 9, 2011

EQUITY RESEARCH COVERAGE
DECEMBER 31, 2009


BMO Capital Markets	Richard C. Anderson / Mark Lutenski	(212) 885-4180 / (212) 885-4197	richard.anderson@bmo.com / mark.lutenski@bmo.com

Credit Suisse	Steven Benyik	(212) 538-0239	steve.benyik@credit-suisse.com

Green Street Advisors	John Stewart / Michael Knott	(949) 640-8780	jstewart@greenst.com / mknott@greenst.com

KeyBanc Capital Markets	Jordan Sadler / Craig Mailman	(917) 368-2280 / (917) 368-2316	jsadler@keybanccm.com / cmailman@keybanccm.com

Morningstar, Inc.	David Rodziewicz	—	david.rodziewicz@morningstar.com

Raymond James	Paul D. Puryear / William A. Crow	(727) 567-2253 / (727) 567-5294	paul.puryear@raymondjames.com / bill.crow@raymondjames.com

RBC Capital Markets	David Rodgers / Mike Carroll	(440) 715-2647 / (440) 715-2649	dave.rodgers@rbccm.com / michael.carroll@rbccm.com

Robert W. Baird & Co.	David Aubuchon / Justin Pelham-Webb	(314) 863-4235 / (314) 863-6413	daubuchon@rwbaird.com /
			jpelham-webb@rwbaird.com

Stifel, Nicolaus & Company, Inc.	John W. Guinee / Erin Aslakson	(443) 224-1307 / (443) 224-1350	jwguinee@stifel.com / aslaksone@stifel.com

UBS Securities	Ross T. Nussbaum / Robert Salisbury	(212) 713-4760 / (212)713-2484	ross.nussbaum@ubs.com / robert.salisbury@ubs.com

Wells Fargo Securities, LLC	Brendan Maiorana / Young Ku	(443) 263-6516 / (443) 263-6564	brendan.maiorana@wachovia.com / young.ku@wachovia.com

FINANCIAL AND OPERATING HIGHLIGHTS
DECEMBER 31, 2009

(In thousands, except per share and ratio amounts)


	Three months ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Selected Operating Data
Total revenues	$	88,171		$	92,963		$	86,080		$	93,951		$	83,033

EBITDA (1)		48,421			55,291			56,233			59,079			44,120
Adjusted EBITDA (1)		52,672			59,640			61,119			64,025			48,667

Net operating income — cash basis (2)		55,939			59,033			56,354			57,946			53,842

General and administrative expense		6,556			5,956			5,126			5,280			6,406

Interest expense		20,429			19,614			12,875			12,080			12,137
Capitalized interest		1,860			2,943			3,472			4,130			6,839
Interest incurred including swap payments (3)		22,634			23,259			17,101			17,107			19,241

Operating margin (4)		69.9	%		69.3	%		73.1	%		67.2	%		71.6	%
General and administrative expense / Total revenues		7.4	%		6.4	%		6.0	%		5.6	%		7.7	%

Net income available to common stockholders		477			4,062			18,195			19,024			5,618
Net income per share — diluted	$	0.00		$	0.04		$	0.20		$	0.23		$	0.07

FFO (5)		27,999			35,779			43,997			47,701			32,286
FFO per share — diluted (5)	$	0.28		$	0.35		$	0.48		$	0.56		$	0.39

AFFO (5)		27,611			33,193			36,511			37,338			32,382
AFFO per share — diluted (5)	$	0.27		$	0.33		$	0.39		$	0.44		$	0.39

Coverage Ratios (6)
Interest coverage		3.0			3.4			4.9			5.6			4.3
Fixed charge coverage		2.2			2.6			3.4			3.8			2.9

Dividend per share — common stock	$	0.14		$	0.11		$	0.11		$	0.335		$	0.335

FFO payout ratio (7)		50.0	%		31.4	%		22.9	%		59.8	%		85.9	%
AFFO payout ratio (7)		51.9	%		33.3	%		28.2	%		76.1	%		85.9	%


(1)		For definitions and discussion of EBITDA and adjusted EBITDA, see page 32. For a quantitative reconciliation of the differences between adjusted EBITDA, EBITDA and net income available to common stockholders, see page 12.

(2)		For definitions and discussion of net operating income — cash basis, see page 13.

(3)		Includes interest paid on cash flow hedges classified as accumulated other comprehensive income/(loss) in accordance with Emerging Issues Task Force Issue No. 99-09. Excludes ineffectiveness recognized on derivative instruments.

(4)		See page 13 for detail.

(5)		For definitions and discussion of FFO and AFFO, see page 32. For a quantitative reconciliation of the differences between FFO, AFFO and net income available to common stockholders, see page 11.

(6)		For a discussion of coverage ratios, see page 32. See pages 14 and 15 for detail.

(7)		See page 11 for detail.

CAPITALIZATION SUMMARY
DECEMBER 31, 2009
(In thousands, except per share and ratio amounts)


	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Capitalization:
Total common shares outstanding		99,000			98,204			98,119			81,181			80,757
Total units outstanding (1)		3,077			3,086			3,174			3,362			3,436

Total common shares and units outstanding		102,077			101,290			101,292			84,543			84,193
Common share price at quarter end	$	15.78		$	13.80		$	10.23		$	6.77		$	11.72

Equity value at quarter end	$	1,610,773		$	1,397,796		$	1,036,221		$	572,357		$	986,741
Preferred stock at liquidation value		230,000			230,000			230,000			230,000			230,000
Consolidated debt		1,361,805			1,346,341			1,363,245			1,423,999			1,341,099

Total capitalization	$	3,202,578		$	2,974,137		$	2,629,466		$	2,226,356		$	2,557,840


Debt / Total assets		41.5	%		40.9	%		41.2	%		43.0	%		41.5	%
Debt / Total capitalization		42.5	%		45.2	%		51.7	%		63.9	%		52.5	%

Total consolidated debt:
Fixed rate debt / Total debt		52.2	%		57.5	%		60.1	%		32.3	%		35.3	%
Adjusted fixed rate debt / Total debt		81.7	%		87.3	%		89.5	%		60.5	%		65.2	%

Total consolidated and share of unconsolidated partnership debt:
Fixed rate debt / Total debt		52.0	%		57.0	%		59.4	%		33.0	%		34.9	%
Adjusted fixed rate debt / Total debt		82.5	%		87.7	%		89.8	%		59.7	%		62.6	%


(1)		Includes both operating partnership (OP) and long term incentive plan (LTIP) units outstanding.

PROPERTY PORTFOLIO SUMMARY
DECEMBER 31, 2009


	December 31, 2009
																	Unconsolidated
	Consolidated Portfolio														Partnership Portfolio (1)							Total Portfolio
	Gross		GBV			GBV				Rentable		Percent					Rentable		Percent					Rentable		Percent
	Book Value		% of Tot			PSF		Properties		Square Feet		Leased			Properties		Square Feet		Leased			Properties		Square Feet		Leased
	(in thousands)
Stabilized (2)	$	2,240,667		69.8	%	$	425		40		5,269,817		98.6	%		4		257,268		100.0	%		44		5,527,085		98.6	%
Lease up (2)		560,884		17.4	%		216		19		2,595,930		70.1	%		2		417,290		46.4	%		21		3,013,220		66.8	%

Current operating portfolio		2,801,551		87.2	%		356		59		7,865,747		89.2	%		6		674,558		66.9	%		65		8,540,305		87.4	%
Long-term lease up (3)		280,898		8.7	%		202		1		1,389,517		25.5	%		—		—		n/a			1		1,389,517		25.5	%

Total operating portfolio		3,082,449		95.9	%		333		60		9,255,264		79.6	%		6		674,558		66.9	%		66		9,929,822		78.7	%
Development (4)		—		—			—		—		—		n/a			1		280,000		—			1		280,000		—
Redevelopment (5)		75,269		2.3	%		488		1		154,341		—			—		—		n/a			1		154,341		—
Pre-development (5)		23,814		0.7	%		157		1		152,145		—			—		—		n/a			1		152,145		—

Total portfolio		3,181,532		98.9	%		333		62		9,561,750		77.1	%		7		954,558		47.3	%		69		10,516,308		74.3	%
Land parcels (5)		35,008		1.1	%		23		n/a		1,548,000		n/a			—		—		n/a			n/a		1,548,000		n/a

Total proforma portfolio	$	3,216,541		100.0	%	$	290		62		11,109,750		n/a			7		954,558		n/a			69		12,064,308		n/a


	September 30, 2009
																	Unconsolidated
	Consolidated Portfolio														Partnership Portfolio (1)							Total Portfolio
	Gross		GBV			GBV				Rentable		Percent					Rentable		Percent					Rentable		Percent
	Book Value		% of Tot			PSF		Properties		Square Feet		Leased			Properties		Square Feet		Leased			Properties		Square Feet		Leased
	(in thousands)
Stabilized	$	2,263,086		70.7	%	$	400		40		5,663,595		97.4	%		4		257,268		100.0	%		44		5,920,863		97.5	%
Lease up		552,544		17.3	%		234		20		2,357,811		59.6	%		2		417,290		27.3	%		22		2,775,101		54.8	%

Current operating portfolio		2,815,630		88.0	%		351		60		8,021,406		86.3	%		6		674,558		55.1	%		66		8,695,964		83.9	%
Long-term lease up		279,883		8.7	%		201		1		1,389,517		24.2	%		—		—		n/a			1		1,389,517		24.2	%

Total operating portfolio		3,095,513		96.7	%		329		61		9,410,923		77.1	%		6		674,558		55.1	%		67		10,085,481		75.7	%
Redevelopment		74,101		2.3	%		480		1		154,341		—			—		—		n/a			1		154,341		—
Development		—		—			—		—		—		n/a			1		280,000		—			1		280,000		—
Pre-development		—		—			—		—		—		n/a			—		—		n/a			—		—		n/a

Total portfolio		3,169,614		99.0	%		331		62		9,565,264		75.9	%		7		954,558		38.9	%		69		10,519,822		72.5	%
Land parcels		32,508		1.0	%		24		n/a		1,352,000		n/a			—		—		n/a			n/a		1,352,000		n/a

Total proforma portfolio	$	3,202,122		100.0	%	$	293		62		10,917,264		n/a			7		954,558		n/a			69		11,871,822		n/a


(1)		Includes 72,863 rentable square feet of McKellar Court (22%) and 881,695 rentable square feet of PREI joint venture properties (20%). See page 24 for additional detail.

(2)		See pages 21-22 for detail of consolidated portfolio, page 24 for detail of the unconsolidated partnership portfolio, and page 33 for definitions of terms.

(3)		Includes Pacific Research Center.

(4)		See page 24 for detail of the unconsolidated partnership portfolio, and page 33 for definitions of terms.

(5)		See page 23 for detail of consolidated portfolio, and page 33 for definitions of terms.

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2009
(In thousands)


	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Assets
Investments in real estate, net	$	2,971,767		$	2,978,701		$	2,994,072		$	3,001,077		$	2,960,429
Investments in unconsolidated partnerships		56,909			47,747			49,243			49,756			18,173
Cash and cash equivalents		19,922			30,279			34,101			32,318			21,422
Restricted cash		15,355			15,974			15,638			4,951			7,877
Accounts receivable, net		4,135			5,482			10,178			14,749			9,417
Accrued straight-line rents, net		82,066			75,489			69,046			62,040			58,138
Acquired above-market leases, net		3,047			3,368			3,688			4,009			4,329
Deferred leasing costs, net		83,274			85,926			90,472			95,204			101,519
Deferred loan costs, net		8,123			7,794			8,535			8,451			9,754
Other assets		38,676			43,051			36,939			37,607			38,256

Total assets	$	3,283,274		$	3,293,811		$	3,311,912		$	3,310,162		$	3,229,314

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	669,454		$	671,693		$	717,764		$	351,469		$	353,161
Secured construction loan		—			—			—			507,128			507,128
Secured term loan		250,000			250,000			250,000			250,000			250,000
Exchangeable senior notes due 2026, net		44,685			103,524			103,077			111,068			122,043
Unsecured line of credit		397,666			321,124			292,404			204,334			108,767
Security deposits		7,929			7,187			7,660			7,641			7,623
Dividends and distributions payable		18,531			15,383			15,383			32,563			32,445
Accounts payable, accrued expenses and other liabilities		47,388			71,389			66,406			87,359			66,821
Derivative instruments		12,551			15,948			17,910			100,840			126,091
Acquired below-market leases, net		11,138			12,344			13,550			14,762			17,286

Total liabilities		1,459,342			1,468,592			1,484,154			1,667,164			1,591,365
Equity:
Stockholders’ equity:
Preferred stock		222,413			222,413			222,413			222,413			222,413
Common stock		990			982			981			812			808
Additional paid-in capital		1,843,551			1,833,898			1,833,026			1,661,656			1,661,009
Accumulated other comprehensive loss		(85,183	)		(88,894	)		(91,525	)		(100,314	)		(112,126	)
Dividends in excess of earnings		(167,429	)		(154,045	)		(147,306	)		(154,708	)		(146,536	)

Total stockholders’ equity		1,814,342			1,814,354			1,817,589			1,629,859			1,625,568
Noncontrolling interests		9,590			10,865			10,169			13,139			12,381

Total equity		1,823,932			1,825,219			1,827,758			1,642,998			1,637,949

Total liabilities and equity	$	3,283,274		$	3,293,811		$	3,311,912		$	3,310,162		$	3,229,314

CONSOLIDATED STATEMENTS OF INCOME
DECEMBER 31, 2009
(In thousands, except share and per share data)


	Three Months Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Revenues:
Rental	$	67,294		$	68,472		$	65,716		$	68,419		$	63,518
Tenant recoveries		19,895			19,240			17,189			21,081			18,869
Other income		982			5,251			3,175			4,451			646

Total revenues		88,171			92,963			86,080			93,951			83,033

Expenses:
Rental operations		17,675			18,726			14,661			22,152			17,255
Real estate taxes		8,532			8,233			7,613			7,233			6,181
Depreciation and amortization		26,853			30,953			24,501			27,313			25,703
General and administrative		6,556			5,956			5,126			5,280			6,406

Total expenses		59,616			63,868			51,901			61,978			55,545

Income from operations		28,555			29,095			34,179			31,973			27,488
Equity in net loss of unconsolidated partnerships		(506	)		(1,118	)		(465	)		(301	)		(862	)
Interest income		82			62			101			63			115
Interest expense		(20,429	)		(19,614	)		(12,875	)		(12,080	)		(12,137	)
(Loss)/gain on derivative instruments		(86	)		(14	)		360			(56	)		(19,222	)
(Loss)/gain on extinguishment of debt		(2,888	)		—			1,781			4,371			14,783

Net income		4,728			8,411			23,081			23,970			10,165
Net income attributable to noncontrolling interests		(10	)		(108	)		(645	)		(705	)		(306	)

Net income attributable to Company		4,718			8,303			22,436			23,265			9,859
Preferred stock dividends		(4,241	)		(4,241	)		(4,241	)		(4,241	)		(4,241	)

Net income available to common stockholders	$	477		$	4,062		$	18,195		$	19,024		$	5,618


Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.00		$	0.04		$	0.20		$	0.23		$	0.07

Weighted-average common shares outstanding:
Basic		97,706,262			97,315,601			88,503,295			80,261,363			79,692,998

Diluted		101,666,673			101,289,458			92,615,935			84,499,365			83,485,531

FFO (1) AND AFFO (1)
DECEMBER 31, 2009
(In thousands, except per share and ratio amounts)


	Three Months Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net income available to common stockholders	$	477		$	4,062		$	18,195		$	19,024		$	5,618
Adjustments:
Noncontrolling interests in operating partnership		30			122			658			722			319
Depreciation & amortization — unconsolidated partnerships		662			662			662			662			662
Depreciation & amortization — consolidated entities — continued operations		26,853			30,953			24,501			27,313			25,703
Depreciation & amortization — allocable to noncontrolling interests of consolidated joint ventures		(23	)		(20	)		(19	)		(20	)		(16	)

FFO	$	27,999		$	35,779		$	43,997		$	47,701		$	32,286

FFO per share — diluted	$	0.28		$	0.35		$	0.48		$	0.56		$	0.39

Dividends and distributions declared per common share	$	0.14		$	0.11		$	0.11		$	0.335		$	0.335

FFO payout ratio		50.0	%		31.4	%		22.9	%		59.8	%		85.9	%

Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO	$	27,999		$	35,779		$	43,997		$	47,701		$	32,286
Adjustments:
Second generation capital expenditures		(978	)		(273	)		(256	)		(1,285	)		(1,105	)
Loss/(gain) on extinguishment of debt		2,888			—			(1,781	)		(4,371	)		(14,783	)
Loss/(gain) on derivative instruments		86			14			(360	)		56			19,222
Amortization of deferred interest costs		1,791			1,797			—			—			—
Amortization of deferred loan costs		1,362			803			919			1,143			1,270
Amortization of fair-value of debt acquired		(467	)		(466	)		(463	)		(457	)		(456	)
Amortization of debt discount		427			447			453			482			683
Non-cash equity compensation		1,462			1,376			1,383			1,404			1,771
Straight line rents		(6,358	)		(6,222	)		(6,682	)		(3,895	)		(5,090	)
Share of unconsolidated partnership adjustments (2)		285			824			193			141			178
Fair-value lease revenue		(886	)		(886	)		(892	)		(3,581	)		(1,594	)

AFFO	$	27,611		$	33,193		$	36,511		$	37,338		$	32,382

AFFO per share — diluted	$	0.27		$	0.33		$	0.39		$	0.44		$	0.39

Dividends and distributions declared per common share	$	0.14		$	0.11		$	0.11		$	0.335		$	0.335

AFFO payout ratio		51.9	%		33.3	%		28.2	%		76.1	%		85.9	%


(1)		For definitions and discussion of FFO and AFFO, see page 32.

(2)		Share of unconsolidated partnership adjustments includes the Company’s share of amortization of deferred loan costs, straight line rents, and fair-value lease revenue.

RECONCILIATION OF EBITDA (1)
DECEMBER 31, 2009
(In thousands)


	Three Months Ended
	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	477	$	4,062	$	18,195	$	19,024	$	5,618
Interest expense		20,429		19,614		12,875		12,080		12,137
Depreciation & amortization — consolidated entities — continued operations		26,853		30,953		24,501		27,313		25,703
Depreciation & amortization — unconsolidated partnerships		662		662		662		662		662

EBITDA		48,421		55,291		56,233		59,079		44,120
Noncontrolling interests		10		108		645		705		306
Preferred dividends		4,241		4,241		4,241		4,241		4,241

Adjusted EBITDA	$	52,672	$	59,640	$	61,119	$	64,025	$	48,667


(1)		For a definition and discussion of EBITDA and adjusted EBITDA, see page 32.

RECONCILIATION OF NET OPERATING INCOME (1)
DECEMBER 31, 2009
(Dollars in thousands)


	Three Months Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08

Net income	$	4,728		$	8,411		$	23,081		$	23,970		$	10,165
Equity in net loss of unconsolidated partnerships		506			1,118			465			301			862
Interest expense		20,429			19,614			12,875			12,080			12,137
Interest income		(82	)		(62	)		(101	)		(63	)		(115	)
Loss/(gain) on derivative instruments		86			14			(360	)		56			19,222
Loss/(gain) on extinguishment of debt		2,888			—			(1,781	)		(4,371	)		(14,783	)

Income from operations		28,555			29,095			34,179			31,973			27,488
Depreciation and amortization		26,853			30,953			24,501			27,313			25,703
General and administrative		6,556			5,956			5,126			5,280			6,406

Consolidated net operating income	$	61,964		$	66,004		$	63,806		$	64,566		$	59,597


Revenues:
Rental	$	67,294		$	68,472		$	65,716		$	68,419		$	63,518
Tenant recoveries		19,895			19,240			17,189			21,081			18,869
Other income		982			5,251			3,175			4,451			646

Total revenues		88,171			92,963			86,080			93,951			83,033

Expenses:
Rental operations		17,675			18,726			14,661			22,152			17,255
Real estate taxes		8,532			8,233			7,613			7,233			6,181

Total operating expenses		26,207			26,959			22,274			29,385			23,436

Consolidated net operating income	$	61,964		$	66,004		$	63,806		$	64,566		$	59,597

Consolidated net operating income — cash basis (2)	$	55,939		$	59,033		$	56,354		$	57,946		$	53,842


Operating margin (3)		69.9	%		69.3	%		73.1	%		67.2	%		71.6	%

Operating expense recovery (4)		75.9	%		71.4	%		77.2	%		71.7	%		80.5	%


(1)		For a definition and discussion of net operating income, see page 32.

(2)		Consolidated net operating income — cash basis is calculated as (consolidated net operating income — straight line rents — fair value lease revenue — lease incentive revenue — bad debt expense).

(3)		Operating margin is calculated as ((rental revenues + tenant recovery revenues — rental operations — real estate taxes) / (rental revenues + tenant recovery revenues)).

(4)		Operating expense recovery is calculated as (tenant recovery revenues / (rental operations + real estate taxes)).

INTEREST COVERAGE RATIOS (1)
DECEMBER 31, 2009
(In thousands, except ratios)


	Three Months Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Excluding capitalized interest:
Adjusted EBITDA	$	52,672		$	59,640		$	61,119		$	64,025		$	48,667
Interest expense:
Interest expense		20,429			19,614			12,875			12,080			12,137
Interest expense — unconsolidated partnerships		509			454			507			420			729
Amortization of deferred interest costs		(1,791	)		(1,797	)		—			—			—
Amortization of deferred loan costs		(1,362	)		(803	)		(919	)		(1,143	)		(1,270	)
Amortization of debt discount		(427	)		(447	)		(453	)		(482	)		(683	)
Amortization of fair-value of debt acquired		467			466			463			457			456

Total interest expense	$	17,825		$	17,487		$	12,473		$	11,332		$	11,369


Interest coverage ratio		3.0			3.4			4.9			5.6			4.3


Including capitalized interest:
Adjusted EBITDA	$	52,672		$	59,640		$	61,119		$	64,025		$	48,667
Interest expense:
Interest expense		20,429			19,614			12,875			12,080			12,137
Interest expense — unconsolidated partnerships		509			454			507			420			729
Interest expense — accumulated other comprehensive income		345			702			754			897			265
Capitalized interest		1,860			2,943			3,472			4,130			6,839
Amortization of deferred interest costs		(1,791	)		(1,797	)		—			—			—
Amortization of deferred loan costs		(1,362	)		(803	)		(919	)		(1,143	)		(1,270	)
Amortization of debt discount		(427	)		(447	)		(453	)		(482	)		(683	)
Amortization of fair-value of debt acquired		467			466			463			457			456

Total interest expense	$	20,030		$	21,132		$	16,699		$	16,359		$	18,473


Interest coverage ratio		2.6			2.8			3.7			3.9			2.6


(1)		For a discussion of coverage ratios, see page 32.

FIXED CHARGE COVERAGE RATIOS (1)
DECEMBER 31, 2009
(In thousands, except ratios)


	Three Months Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Excluding capitalized interest:
Adjusted EBITDA	$	52,672		$	59,640		$	61,119		$	64,025		$	48,667
Fixed charges:
Interest expense		20,429			19,614			12,875			12,080			12,137
Interest expense — unconsolidated partnerships		509			454			507			420			729
Amortization of deferred interest costs		(1,791	)		(1,797	)		—			—			—
Amortization of deferred loan costs		(1,362	)		(803	)		(919	)		(1,143	)		(1,270	)
Amortization of debt discount		(427	)		(447	)		(453	)		(482	)		(683	)
Amortization of fair-value of debt acquired		467			466			463			457			456
Principal payments		1,773			1,488			1,031			1,446			1,210
Principal payments — unconsolidated partnerships		8			8			7			8			8
Preferred dividends		4,241			4,241			4,241			4,241			4,241

Total fixed charges	$	23,847		$	23,224		$	17,752		$	17,027		$	16,828


Fixed charge coverage ratio		2.2			2.6			3.4			3.8			2.9


Including capitalized interest:
Adjusted EBITDA	$	52,672		$	59,640		$	61,119		$	64,025		$	48,667
Fixed charges:
Interest expense		20,429			19,614			12,875			12,080			12,137
Interest expense — unconsolidated partnerships		509			454			507			420			729
Interest expense — accumulated other comprehensive income		345			702			754			897			265
Capitalized interest		1,860			2,943			3,472			4,130			6,839
Amortization of deferred interest costs		(1,791	)		(1,797	)		—			—			—
Amortization of deferred loan costs		(1,362	)		(803	)		(919	)		(1,143	)		(1,270	)
Amortization of debt discount		(427	)		(447	)		(453	)		(482	)		(683	)
Amortization of fair-value of debt acquired		467			466			463			457			456
Principal payments		1,773			1,488			1,031			1,446			1,210
Principal payments — unconsolidated partnerships		8			8			7			8			8
Preferred dividends		4,241			4,241			4,241			4,241			4,241

Total fixed charges	$	26,052		$	26,869		$	21,978		$	22,054		$	23,932


Fixed charge coverage ratio		2.0			2.2			2.8			2.9			2.0


(1)		For a discussion of coverage ratios, see page 32.

DEBT SUMMARY
DECEMBER 31, 2009
(Dollars in thousands)


									Unamortized
	Stated			Effective			Principal		Premium /			Carrying		Maturity
	Rate			Rate			Balance		(Discount)			Value		Date
Consolidated debt:

Mortgage notes payable:
Ardentech Court		7.25	%		5.06	%	$	4,354	$	222		$	4,576		07/12
Bridgeview Technology Park I		8.07	%		5.04	%		11,246		365			11,611		01/11
Center for Life Science \| Boston		7.75	%		7.75	%		348,749		—			348,749		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		66,077		3,700			69,777		12/18
Lucent Drive		5.50	%		5.50	%		5,129		—			5,129		01/15
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,595		307			6,902		09/12
Road to the Cure		6.70	%		5.78	%		14,956		491			15,447		01/14
Science Center Drive		7.65	%		5.04	%		10,981		439			11,420		07/11
Shady Grove Road		5.97	%		5.97	%		147,000		—			147,000		09/16
Sidney Street		7.23	%		5.11	%		28,322		1,351			29,673		06/12
9865 Towne Centre Drive		7.95	%		7.95	%		17,884		—			17,884		06/13
900 Uniqema Boulevard		8.61	%		5.61	%		1,191		95			1,286		05/15

Total / weighted average on fixed rate mortgages		7.16	%		6.82	%		662,484		6,970			669,454

Fixed rate debt:
Unsecured exchangeable senior notes due 2026		4.50	%		6.45	%		46,150		(1,465	)		44,685		10/26

Total / weighted average fixed rate debt		6.98	%		6.80	%		708,634		5,505			714,139
Variable rate debt:
Secured term loan		1.89	%		1.89	%		250,000		—			250,000		08/12
$720 million unsecured line of credit		1.33	%		1.33	%		397,666		—			397,666		08/11

Total / weighted average variable rate debt		1.54	%		1.54	%		647,666		—			647,666

Total / weighted average consolidated debt		4.38	%		4.28	%	$	1,356,300	$	5,505		$	1,361,805


Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)		3.74	%		3.74	%	$	40,650	$	—		$	40,650		02/11
PREI secured construction loan (20%) (variable)		1.74	%		1.74	%		38,415		—			38,415		08/10

Total / weighted average share of unconsolidated partnership debt		2.77	%		2.77	%		79,065		—			79,065

Total / weighted average consolidated and share of unconsolidated partnership debt		4.30	%		4.20	%	$	1,435,365	$	5,505		$	1,440,870

DEBT ANALYSIS
DECEMBER 31, 2009
(Dollars in thousands)

Secured and Unsecured Debt Analysis


						Weighted			Weighted
			Percentage			Average			Average
	Principal		of Principal			Stated			Effective
	Balance		Balance			Interest Rate			Interest Rate
Secured debt	$	912,484		67.3	%		5.71	%		5.47	%
Unsecured debt		443,816		32.7	%		1.66	%		1.86	%

Total consolidated debt	$	1,356,300		100.0	%		4.38	%		4.28	%

Fixed and Variable Rate Debt Analysis


						Weighted			Weighted
			Percentage			Average			Average
	Principal		of Principal			Stated			Effective
	Balance		Balance			Interest Rate			Interest Rate
Fixed rate debt	$	708,634		52.2	%		6.98	%		6.80	%
Variable rate debt — hedged		400,000		29.5	%		5.80	%		5.80	%
Variable rate debt — unhedged		247,666		18.3	%		1.33	%		1.33	%

Total consolidated debt	$	1,356,300		100.0	%		5.60	%		5.50	%


	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Total consolidated debt:
Fixed rate debt / Total debt		52.2	%		57.5	%		60.1	%		32.3	%		35.3	%
Adjusted fixed rate debt / Total debt		81.7	%		87.3	%		89.5	%		60.5	%		65.2	%

Total consolidated debt and share of unconsolidated partnership debt:
Fixed rate debt / Total debt		52.0	%		57.0	%		59.4	%		33.0	%		34.9	%
Adjusted fixed rate debt / Total debt		82.5	%		87.7	%		89.8	%		59.7	%		62.6	%

DEBT MATURITIES
DECEMBER 31, 2009
(In thousands)

Weighted average debt maturity is 4 years for total consolidated debt and 3.8 years for total consolidated and share of unconsolidated partnership debt.


	2010		2011		2012		2013		2014		Thereafter		Total

Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	7,404	$	29,914	$	45,414	$	25,941	$	353,091	$	200,720	$	662,484
Unsecured exchangeable senior notes due 2026 (1)		—		—		—		—		—		46,150		46,150

Total fixed rate debt		7,404		29,914		45,414		25,941		353,091		246,870		708,634
Variable rate debt:
Secured term loan		—		—		250,000		—		—		—		250,000
$720 million unsecured line of credit (2)		—		397,666		—		—		—		—		397,666

Total variable rate debt		—		397,666		250,000		—		—		—		647,666

Total consolidated debt	$	7,404	$	427,580	$	295,414	$	25,941	$	353,091	$	246,870	$	1,356,300

Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable) (3)	$	—	$	40,650	$	—	$	—	$	—	$	—	$	40,650
PREI secured construction loan (20%) (variable) (4)		38,415		—		—		—		—		—		38,415

Share of total unconsolidated partnership debt	$	38,415	$	40,650	$	—	$	—	$	—	$	—	$	79,065


Total consolidated and share of unconsolidated partnership debt	$	45,819	$	468,230	$	295,414	$	25,941	$	353,091	$	246,870	$	1,435,365


(1)		The holders of the unsecured exchangeable senior notes (the “Notes”) have the right to require the Company to repurchase the Notes, in whole or in part, for cash on each of October 1, 2011, October 1, 2016 and October 1, 2021, or upon the occurrence of a designated event, in each case for a repurchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest.

(2)		The maturity date may be extended to August 1, 2012 after satisfying certain conditions.

(3)		The maturity date may be extended to February 10, 2012 after satisfying certain conditions.

(4)		The maturity date may be extended to August 13, 2011 after satisfying certain conditions.

COMMON AND PREFERRED STOCK DATA
DECEMBER 31, 2009
(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Weighted average common shares outstanding		97,731			97,316			88,503			80,261			79,693
Weighted average OP and LTIP units outstanding		3,081			3,152			3,281			3,415			3,481
Dilutive effect of restricted stock		822			822			832			823			312

Diluted common shares		101,634			101,289			92,616			84,499			83,486


Closing common shares, OP and LTIP units outstanding		102,077			101,290			101,292			84,543			84,193
Preferred shares outstanding		9,200			9,200			9,200			9,200			9,200
High price	$	16.59		$	15.31		$	12.21		$	13.52		$	25.43
Low price	$	12.62		$	9.16		$	6.47		$	6.02		$	5.88
Average closing price	$	14.16		$	12.41		$	10.04		$	9.66		$	13.41
Closing price	$	15.78		$	13.80		$	10.23		$	6.77		$	11.72
Dividends per share — annualized	$	0.56		$	0.44		$	0.44		$	1.34		$	1.34
Closing dividend yield — annualized		3.5	%		3.2	%		4.3	%		19.8	%		11.4	%

DIVIDENDS PER SHARE

12/31/09

9/30/09

6/30/09

3/31/09

12/31/08

Common Stock — BMR

Amount

0.14

0.11

0.335

Declared

December 15, 2009

September 15, 2009

June 15, 2009

March 16, 2009

December 15, 2008

Record

December 31, 2009

September 30, 2009

June 30, 2009

March 31, 2009

December 31, 2008

Paid

January 15, 2010

October 15, 2009

July 15, 2009

April 15, 2009

January 15, 2009

Preferred Stock — BMR PrA

Amount

0.46094

Declared

December 15, 2009

September 15, 2009

June 15, 2009

March 16, 2009

December 15, 2008

Record

December 31, 2009

September 30, 2009

June 30, 2009

March 31, 2009

December 31, 2008

Paid

January 15, 2010

October 15, 2009

July 15, 2009

April 15, 2009

January 15, 2009

MARKET SUMMARY
DECEMBER 31, 2009


			Current (1)							Expiration (2)
								Annualized							Annualized
	Leased				Percent of			Base Rent				Percent of			Base Rent
	Square		Annualized		Annualized			per Leased		Annualized		Annualized			per Leased
Market	Feet		Base Rent		Base Rent			Sq Ft		Base Rent		Base Rent			Sq Ft
			(in thousands)							(in thousands)
Boston		2,263,879	$	118,718		40.9	%	$	52.44	$	130,268		37.0	%	$	57.54
Maryland		1,144,968		46,742		16.1	%		40.82		63,578		18.0	%		55.53
San Diego		1,084,660		32,977		11.4	%		30.40		41,615		11.8	%		38.37
San Francisco		1,193,272		30,585		10.6	%		25.63		38,354		10.9	%		32.14
New York / New Jersey		1,027,970		30,555		10.5	%		29.72		44,842		12.7	%		43.62
Pennsylvania		684,920		15,159		5.2	%		22.13		16,348		4.6	%		23.87
Seattle		169,593		7,114		2.5	%		41.95		8,730		2.5	%		51.48
University Related — Other		249,507		8,020		2.8	%		32.14		8,965		2.5	%		35.93

Total portfolio / weighted average		7,818,769	$	289,870		100.0	%	$	37.07	$	352,700		100.0	%	$	45.11


(1)		Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)		Annualized base rent at expiration is the monthly contractual rent as of date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
DECEMBER 31, 2009


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/09			9/30/09
	Boston
1	Albany Street	May 31, 2005	Stabilized		2		75,003		0.8	%		75,003		100.0	%		100.0	%
2	Center for Life Science \| Boston	November 17, 2006	Stabilized		1		704,159		7.4	%		641,438		91.1	%		90.8	%
3	Charles Street	April 7, 2006	Stabilized		1		47,912		0.5	%		47,912		100.0	%		100.0	%
4	Coolidge Avenue	April 5, 2005	Lease Up		1		37,400		0.4	%		21,461		57.4	%		57.4	%
5	21 Erie Street	May 31, 2005	Stabilized		1		48,627		0.5	%		48,627		100.0	%		100.0	%
6	40 Erie Street	May 31, 2005	Stabilized		1		100,854		1.1	%		100,854		100.0	%		100.0	%
7	47 Erie Street Parking Structure	May 31, 2005	Stabilized		1	447 Stalls			n/a		447 Stalls			n/a			n/a
8	Fresh Pond Research Park	April 5, 2005	Lease Up		6		90,702		0.9	%		66,696		73.5	%		73.5	%
9	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		3.2	%		293,791		97.0	%		98.8	%
10	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		3.7	%		345,497		98.9	%		98.9	%
11	Sidney Street	May 31, 2005	Stabilized		1		191,904		2.0	%		191,904		100.0	%		100.0	%
12	Vassar Street	May 31, 2005	Stabilized		1		52,520		0.5	%		52,520		100.0	%		100.0	%

	Total Boston				18		2,001,325		21.0	%		1,885,703		94.2	%		94.4	%

	Maryland
13	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.8	%		77,225		100.0	%		100.0	%
14	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		3.0	%		289,912		100.0	%		100.0	%
15	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.5	%		51,181		100.0	%		100.0	%
16	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		6.6	%		635,058		100.0	%		100.0	%
17	Tributary Street	December 17, 2004	Stabilized		1		91,592		1.0	%		91,592		100.0	%		100.0	%

	Total Maryland				8		1,144,968		11.9	%		1,144,968		100.0	%		100.0	%

	San Diego
18	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.4	%		35,344		100.0	%		100.0	%
19	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.6	%		61,286		100.0	%		100.0	%
20	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.3	%		28,704		100.0	%		100.0	%
21	John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.8	%		21,470		29.7	%		29.7	%
22	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		2.1	%		196,557		100.0	%		100.0	%
23	6828 Nancy Ridge Drive	April 21, 2005	Lease Up		1		42,138		0.4	%		24,431		58.0	%		74.0	%
24	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.7	%		66,745		100.0	%		100.0	%
25	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.7	%		54,104		79.6	%		79.6	%
26	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		1.1	%		83,497		79.2	%		74.6	%
27	Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.6	%		53,740		100.0	%		100.0	%
28	Sorrento Valley Boulevard	December 7, 2006	Stabilized		1		54,924		0.6	%		54,924		100.0	%		100.0	%
29	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.8	%		81,204		100.0	%		100.0	%
30	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		1.0	%		94,866		100.0	%		100.0	%
31	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		1.1	%		104,870		100.0	%		100.0	%
32	Waples Street	March 1, 2005	Stabilized		1		50,055		0.5	%		50,055		100.0	%		100.0	%

	Total San Diego				20		1,115,987		11.7	%		1,011,797		90.7	%		90.8	%

	San Francisco
33	Ardentech Court	November 18, 2004	Stabilized		1		55,588		0.6	%		55,588		100.0	%		100.0	%
34	Ardenwood Venture (2)	June 14, 2006	Lease Up		1		72,500		0.8	%		27,620		38.1	%		38.1	%
35	Bayshore Boulevard	August 17, 2004	Stabilized		3		183,344		1.9	%		183,344		100.0	%		100.0	%
36	Bridgeview Technology Park I	September 10, 2004	Lease Up		2		201,567		2.1	%		146,609		72.7	%		71.2	%
37	Bridgeview Technology Park II	March 16, 2005	Lease Up		1		50,400		0.5	%		—		—			—

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
DECEMBER 31, 2009


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/09			9/30/09
	San Francisco (Cont.)
38	Dumbarton Circle	May 27, 2005	Stabilized		3		44,000		0.5	%		44,000		100.0	%		100.0	%
39	Eccles Avenue	December 1, 2005	Pre-development		1		152,145		1.6	%		—		—			—
40	Forbes Boulevard	September 5, 2007	Stabilized		1		237,984		2.5	%		237,984		100.0	%		100.0	%
41	Industrial Road	August 17, 2004	Lease Up		1		171,965		1.8	%		144,105		83.8	%		87.7	%
42	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.9	%		—		—			—
43	Pacific Research Center	July 11, 2006	Lease Up		10		1,389,517		14.5	%		354,022		25.5	%		24.2	%

	Total San Francisco				25		2,646,963		27.7	%		1,193,272		45.1	%		44.6	%

	New York / New Jersey
44	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.8	%		18,574		25.7	%		25.7	%
45	Landmark at Eastview	August 12, 2004	Lease Up		6		750,784		7.9	%		648,876		86.4	%		90.0	%
46	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		3.8	%		360,520		100.0	%		63.7	%
47	One Research Way	May 31, 2006	Lease Up		1		49,421		0.5	%		—		—			—

	Total New York / New Jersey				11		1,233,025		13.0	%		1,027,970		83.4	%		75.0	%

	Pennsylvania
48	Eisenhower Road	August 13, 2004	Lease Up		1		27,750		0.3	%		16,565		59.7	%		59.7	%
49	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.7	%		71,500		100.0	%		100.0	%
50	King of Prussia	August 11, 2004	Lease Up		5		427,109		4.5	%		374,387		87.7	%		87.7	%
51	Phoenixville Pike	May 5, 2005	Lease Up		1		104,400		1.1	%		74,793		71.6	%		71.6	%
52	Spring Mill Drive	July 20, 2006	Stabilized		1		76,561		0.8	%		76,561		100.0	%		100.0	%
53	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
54	1000 Uniqema Boulevard	September 30, 2005	Stabilized		1		59,821		0.6	%		59,821		100.0	%		100.0	%

	Total Pennsylvania				11		778,434		8.1	%		684,920		88.0	%		88.0	%

	Seattle
55	Elliott Avenue	August 24, 2004	Redevelopment		1		154,341		1.6	%		—		—			—
56	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
57	530 Fairview Avenue	January 12, 2006	Lease Up		1		96,188		1.0	%		53,752		55.9	%		55.9	%
58	Monte Villa Parkway	August 17, 2004	Stabilized		1		51,000		0.5	%		51,000		100.0	%		100.0	%
59	217th Place	November 21, 2006	Lease Up		1		67,799		0.7	%		42,628		62.9	%		62.9	%

	Total Seattle				5		391,541		4.0	%		169,593		43.3	%		43.3	%

	University Related — Other
60	Lucent Drive	May 31, 2005	Stabilized		1		21,500		0.2	%		21,500		100.0	%		100.0	%
61	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.8	%		78,023		100.0	%		100.0	%
62	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.6	%		149,984		100.0	%		100.0	%

	Total University Related — Other				7		249,507		2.6	%		249,507		100.0	%		100.0	%

	Total / weighted average				105		9,561,750		100.0	%		7,367,730		77.1	%		75.9	%


(1)		For a definition of Property Status, see page 33.

(2)		We own 87.5% of the limited liability company that owns the Ardenwood Venture property.

DEVELOPMENT / REDEVELOPMENT / PRE-DEVELOPMENT / LAND PARCELS
DECEMBER 31, 2009
(Dollars in thousands)


											Estimated		Estimated
			Rentable		Percent		Percent		Investment		Total		In-Service
Property	Market		Square Feet		Leased		In Service		to Date (1)		Investment (2)		Date (3)

DEVELOPMENT:
N/A		N/A		—		—		—		—		—		—

REDEVELOPMENT:
Elliott Avenue		Seattle		154,341		—		—	$	75,300	$	77,600		Q1 2010

Total / weighted average				154,341		—		—	$	75,300	$	77,600

Estimated

Rentable

Percent

Investment

Total

In-Service

Property

Market

Square Feet

Leased

In Service

to Date (1)

Investment (2)

Date (3)

PRE-DEVELOPMENT:

Eccles Avenue(4)

San Francisco

152,145

—

23,800

TBD

LAND PARCELS FOR FUTURE DEVELOPMENT:


	Estimated
	Developable
Market	Square Feet

Boston		50,000
Maryland		500,000
San Francisco		508,000
New York / New Jersey		326,000
Pennsylvania		50,000
Seattle		114,000


Total		1,548,000


(1)		Consists of amounts paid through period end and excludes any amounts accrued.

(2)		Excludes costs associated with speculative leasing.

(3)		Management’s estimate of the time in which construction is substantially completed. A project is considered substantially complete and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity.

(4)		Management is currently engaged in entitlement activities that it estimates could increase the rentable square footage of this property to approximately 260,000 square feet.

PROPERTY LISTING — UNCONSOLIDATED PARTNERSHIPS
DECEMBER 31, 2009
(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet (2)

Feet

12/31/09

9/30/09

Market

McKellar Court

McKellar Court

September 30, 2004

Stabilized

72,863

100.0

San Diego

PREI

320 Bent Street

April 4, 2007

Stabilized

184,405

100.0

Boston

301 Binney Street

April 4, 2007

Lease Up

417,290

193,771

46.4

27.3

Boston

301 Binney Garage

April 4, 2007

Lease Up

503 Stalls

n/a

Boston

650 E. Kendall Street (Kendall B)

April 4, 2007

Development

280,000

—

Boston

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1,409 Stalls

n/a

Boston

Kendall Crossing Apartments

April 4, 2007

Stabilized

37 Apts.

n/a

Boston


	McKellar Court (3)			PREI			Total
Total assets	$	16,042		$	630,373		$	646,415
Total debt (4)		10,280			395,325			405,605
Current annualized base rent		1,845			23,791			25,636

BioMed’s net investment in unconsolidated partnerships	$	12,665		$	44,244		$	56,909
BioMed’s pro rata share of debt		—			79,065			79,065
BioMed ownership percentage		22	%		20	%		20	%


(1)		For a definition of Property Status, see page 33.

(2)		Estimates for purposes of development.

(3)		We own a general partnership interest in the limited partnership that owns this property, which entitles us to 75% of the gains upon a sale of the property and 22% of the operating cash flows.

(4)		McKellar debt is payable to BioMed Realty, L.P. and is included in investment in unconsolidated partnership on the Company’s consolidated balance sheet.

LEASE EXPIRATIONS
DECEMBER 31, 2009

Weighted average remaining lease term is 8.9 years for the consolidated portfolio and 8.8 years for the total portfolio


						Current (1)							Expiration (2)
											Annualized							Annualized
			Percent of					Percent of			Base Rent				Percent of			Base Rent
	Leased		Leased			Annualized		Annualized			per Leased		Annualized		Annualized			per Leased
Expiration	Square Feet		Square Feet			Base Rent		Base Rent			Square Feet		Base Rent		Base Rent			Square Feet
						(in thousands)							(in thousands)
Month-to-month		35,322		0.5	%	$	497		0.2	%	$	14.07	$	497		0.1	%	$	14.07
First quarter 2010		61,476		0.8	%		1,308		0.5	%		21.28		1,308		0.4	%		21.28
Second quarter 2010		16,708		0.2	%		404		0.1	%		24.18		404		0.1	%		24.18
Third quarter 2010		109,925		1.4	%		3,014		1.0	%		27.42		3,049		0.9	%		27.74
Fourth quarter 2010		210,597		2.7	%		4,347		1.5	%		20.64		4,361		1.2	%		20.71

2010		434,028		5.6	%		9,570		3.3	%		22.05		9,619		2.7	%		22.16
2011		309,706		4.0	%		10,224		3.5	%		33.01		10,501		3.0	%		33.91
2012		348,118		4.5	%		8,228		2.8	%		23.64		8,682		2.5	%		24.94
2013		526,802		6.7	%		12,361		4.3	%		23.46		13,914		3.9	%		26.41
2014		638,001		8.2	%		15,320		5.3	%		24.01		17,266		4.9	%		27.06
2015		111,347		1.4	%		3,400		1.2	%		30.54		3,871		1.1	%		34.77
2016		1,004,564		12.8	%		38,791		13.4	%		38.61		48,138		13.6	%		47.92
2017		96,575		1.2	%		3,033		1.0	%		31.41		3,440		1.0	%		35.62
2018		1,117,541		14.3	%		48,045		16.6	%		42.99		54,732		15.5	%		48.98
2019		270,150		3.5	%		7,339		2.5	%		27.17		9,493		2.7	%		35.14
Thereafter		2,961,937		37.8	%		133,559		46.1	%		45.09		173,044		49.1	%		58.42


Total / weighted average		7,818,769		100.0	%	$	289,870		100.0	%	$	37.07	$	352,700		100.0	%	$	45.11


(1)		Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)		Annualized base rent at expiration is the monthly contractual rent as of date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

EXPIRATIONS BY MARKET
DECEMBER 31, 2009


	Leased Square Feet
Expiration	Boston		Maryland		San Diego		San Francisco		NY/NJ		Pennsylvania		Seattle		University/Other		Total

2010		131,927		—		34,206		164,894		73,851		29,150		—		—		434,028
2011		35,093		—		58,329		71,308		27,244		117,732		—		—		309,706
2012		21,705		—		137,323		118,992		47,885		—		22,213		—		348,118
2013		—		—		145,221		200,669		136,594		44,318		—		—		526,802
2014		28,019		—		89,744		66,002		—		396,776		35,960		21,500		638,001
2015		—		—		53,740		17,561		19,124		20,922		—		—		111,347
2016		568,603		—		—		100,040		—		76,022		31,892		228,007		1,004,564
2017		—		51,181		—		—		45,394		—		—		—		96,575
2018		807,347		—		68,237		199,329		—		—		42,628		—		1,117,541
2019		2,676		168,817		—		61,757		—		—		36,900		—		270,150
Thereafter		668,509		924,970		497,860		192,720		677,878		—		—		—		2,961,937

Total		2,263,879		1,144,968		1,084,660		1,193,272		1,027,970		684,920		169,593		249,507		7,818,769

10 LARGEST TENANTS
DECEMBER 31, 2009

Our properties were leased to 121 tenants.


									Annualized		Percent of
									Base Rent		Annualized
		Leased					Annualized		per Leased		Base Rent
		Square		Percent of			Base Rent		Sq Ft		Current			Lease
	Tenant	Feet		Leased Sq Ft			Current (1)		Current		Total Portfolio			Expiration
							(In thousands)
1	Human Genome Sciences, Inc.		924,970		11.8	%	$	41,918	$	45.32		14.5	%	June 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		8.8	%		28,982		42.29		10.0	%	Multiple
3	Beth Israel Deaconess Medical Center, Inc.		362,364		4.6	%		25,543		70.49		8.8	%	July 2023
4	Regeneron Pharmaceuticals, Inc. (3)		565,405		7.2	%		18,682		33.04		6.4	%	Multiple
5	Genzyme Corporation		343,000		4.4	%		15,464		45.08		5.3	%	August 2018
6	Merck & Co., Inc. (4) (5)		184,357		2.4	%		9,340		50.66		3.2	%	September 2016
7	Ironwood Pharmaceuticals, Inc. (4) (6)		153,189		2.0	%		9,053		59.10		3.1	%	Multiple
8	Children’s Hospital Corporation		150,215		1.9	%		8,901		59.26		3.1	%	May 2023
9	Centocor, Inc. (Johnson & Johnson)		374,387		4.8	%		8,490		22.68		2.9	%	April 2014
10	Array BioPharma Inc. (7)		228,007		2.9	%		7,397		32.44		2.6	%	Multiple

	Total / weighted average (8)		3,971,180		50.8	%	$	173,770	$	43.76		59.9	%


(1)		Based on current annualized base rent. Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)		20,608 square feet expires May 2012, 81,204 square feet expires October 2013, 292,758 square feet expires January 2016, and 290,716 square feet expires May 2018.

(3)		21,900 square feet is on a month-to-month basis, 16,725 square feet expires March 2011, 6,568 square feet expires August 2011, and 520,212 square feet expires July 2024.

(4)		We own 20% of the limited liability company that owns a property that this tenant occupies.

(5)		39,053 square feet expires July 2012 and 145,304 square feet expires September 2016.

(6)		39,101 square feet expires December 2010 and 114,088 square feet expires January 2016.

(7)		149,984 square feet expires July 2016 and 78,023 square feet expires August 2016.

(8)		Without regard to any early lease terminations and/or renewal options.

SAME PROPERTY ANALYSIS
DECEMBER 31, 2009
(Dollars in thousands)


	Quarter Ended
	12/31/09			12/31/08			Percent Change

Total Same Property Portfolio (1)
Number of properties		55			55
Rentable square feet		6,637,081			6,637,081
Percent of total portfolio		63.1	%		63.1	%
Percent leased		89.1	%		92.5	%

Revenues:
Rental	$	51,497		$	51,817			(0.6	%)
Tenant recoveries		14,059			14,007			0.4	%

Total revenues		65,556			65,824			(0.4	%)


Expenses:
Rental operations		10,606			12,318			(13.9	%)
Real estate taxes		5,402			4,812			12.3	%

Total expenses		16,008			17,130			(6.5	%)

Same property net operating income (2)	$	49,548		$	48,694			1.8	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(3,621	)		(3,677	)		(1.5	%)

Same property net operating income — cash basis (2) (3)	$	45,927		$	45,017			2.0	%


Rental revenue — cash basis (3)	$	46,902		$	47,450			(1.2	%)


Same property net operating income (2)	$	49,548		$	48,694			1.8	%
Plus other income		81			85			(4.7	%)

Same property net operating income — including reconciling items	$	49,629		$	48,779			1.7	%


(1)		The same property portfolio includes properties in the consolidated portfolio that were stabilized or in lease up throughout the full quarter in both the current year and the prior year.

(2)		For a definition and discussion of net operating income, see page 32. For a quantitative reconciliation of net operating income to net income in accordance with GAAP, see page 13.

(3)		Represents rents on a “cash-on-cash” basis. Excluding properties which had lease terminations in 2009, quarterly same property NOI — cash basis increased 2.8%, and rental revenue — cash basis increased 1.8% year-over-year.

ACQUISITIONS
DECEMBER 31, 2009


			Rentable
	Number of		Square
	Properties		Feet (1)		Investment
					(In thousands)

Acquisitions since August 11, 2004:
2004 acquisitions		17		2,626,875	$	533,434
2005 acquisitions		23		2,121,421		715,159
2006 acquisitions		16		3,099,826		1,309,600
2007 acquisitions (2)		14		1,102,822		653,800
2008 acquisitions		1		22,213		4,000
2009 acquisitions		—		—		—

Total acquisitions since August 11, 2004		71		8,973,157	$	3,215,993


(1)		Rentable square feet at the time of acquisition.

(2)		Includes an investment of approximately $506.7 million in properties owned through our joint venture with PREI, of which our investment was $18.5 million.

LEASING ACTIVITY (1)
DECEMBER 31, 2009


				Current
	Leased			Annualized
	Square			Base Rent per
	Feet			Leased Sq Ft

Leased Square Feet as of September 30, 2009		7,629,843
Expirations		(365,444	)	$	22.30
Terminations		(13,522	)		31.15
Renewals, amendments, and extensions		262,714			24.48
New leases		305,178			43.74

Leased Square Feet as of December 31, 2009		7,818,769


Pre-leased Square Feet as of September 30, 2009		—
New leases		20,810		$	28.50

Pre-leased Square Feet as of December 31, 2009		20,810


Gross Leasing Activity — Fourth Quarter 2009		588,702		$	34.61


(1)		Leasing activity for leases signed during the periods presented, which may be different than the period of actual occupancy.

TENANT IMPROVEMENTS AND LEASING COMMISSIONS
DECEMBER 31, 2009


	Three Months Ended
	12/31/09		9/30/09		6/30/09		3/31/09		12/31/08

Renewals, Amendments, and Extensions (1)
Number of renewals		6		3		3		4		5
Square feet		262,714		43,456		20,717		298,520		65,194
Tenant improvement costs per square foot (2)	$	16.79	$	4.37	$	2.39	$	—	$	—
Leasing commission costs per square foot (2)		2.17		1.00		—		3.35		—

Total tenant improvement and leasing commission costs psf	$	18.95	$	5.37	$	2.39	$	3.35	$	—


New Leases (3)
Number of leases		11		8		14		9		5
Square feet		325,988		228,731		228,759		120,722		129,816
Tenant improvement costs per square foot (2)	$	99.77	$	2.47	$	23.40	$	3.26	$	63.32
Leasing commission costs per square foot (2)		10.62		1.73		4.10		4.25		10.32

Total tenant improvement and leasing commission costs psf	$	110.39	$	4.20	$	27.50	$	7.51	$	73.64


Total
Number of renewals/leases		17		11		17		13		10
Square feet		588,702		272,187		249,476		419,242		195,010
Tenant improvement costs per square foot (2)	$	62.74	$	2.77	$	21.66	$	0.94	$	42.15
Leasing commission costs per square foot (2)		6.85		1.61		3.76		3.61		6.87

Total tenant improvement and leasing commission costs psf	$	69.59	$	4.38	$	25.42	$	4.55	$	49.02


(1)		Does not include retained tenants that have relocated to new space or expanded into new space.

(2)		Assumes all tenant improvements and leasing commissions are paid in the calendar year in which the lease commences, which may be different than the year in which they are actually paid.

(3)		Includes pre-leasing activity and retained tenants that have relocated to new space or expanded into new space within our portfolio.

NON-GAAP FINANCIAL MEASURE DEFINITIONS
DECEMBER 31, 2009

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other REITs, and therefore, may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to cash flows from operating, investing or financing activities as a measure of liquidity, computed in accordance with GAAP.

Funds from Operations (FFO)

We present funds from operations, or FFO, because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, in its March 1995 White Paper (as amended in November 1999 and April 2002). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. Our computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

Adjusted Funds from Operations (AFFO)

We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs. We calculate AFFO by adding to FFO: (a) amounts received pursuant to master lease agreements on certain properties, which are not included in rental income for GAAP purposes, and (b) non-cash operating revenues and expenses. Other equity REITs may not calculate AFFO in a consistent manner. Accordingly, our AFFO may not be comparable to other equity REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our operations.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We calculate adjusted EBITDA by adding to EBITDA: (a) minority interests in our operating partnership and (b) dividends payable on our series A preferred stock. Management uses EBITDA and adjusted EBITDA as indicators of our ability to incur and service debt. In addition, we consider EBITDA and adjusted EBITDA to be appropriate supplemental measures of our performance because they eliminate depreciation and interest, which permits investors to view income from operations without the impact of non-cash depreciation or the cost of debt. However, because EBITDA and adjusted EBITDA are calculated before recurring cash charges including interest expense and taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility is limited.

Coverage Ratios

We present interest and fixed charge ratios as supplemental liquidity measures. Management uses these ratios as indicators of our financial flexibility to service current interest expense and debt amortization from current cash net operating income. In addition, we believe that these coverage ratios represent common metrics used by securities analysts, investors and other interested parties to evaluate our ability to service fixed cash payments. However, because these ratios are derived from adjusted EBITDA, their utility is limited by the same factors that limit the usefulness of adjusted EBITDA as a liquidity measure.

Net Operating Income (NOI)

We use net operating income, or NOI, as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. We compute NOI by adding or subtracting certain items from net income, minority interest in the operating partnership, gains/losses from investment in unconsolidated partnerships, interest expense, interest income, depreciation and amortization, and general and administrative expenses. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

PROPERTY DEFINITIONS
DECEMBER 31, 2009

Property Status

Stabilized

Represents operating properties that are more than 90% leased

Lease up

Represents operating properties that are less than 90% leased

Redevelopment

Represents properties that we are currently preparing for their intended use, and accordingly are capitalizing interest and other costs as of the end of the quarter

Pre-development

Represents development properties that are engaged in activities related to planning, entitlement, or other preparations for future construction

Development

Represents properties that we are currently developing through ground up construction

Land parcels, or Land

Represents estimates of the additional rentable square footage that we could put into service if management made the strategic election to pursue additional development

Attached files

Stock widget

Investing forum

BioMed Realty Trust Inc Reports

Also read