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

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BioMed Realty Trust Inc Reports

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8-K - FORM 8-K - BioMed Realty Trust Inc	a57735e8vk.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	a57735exv99w1.htm

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

SEPTEMBER 30, 2010

TABLE OF CONTENTS
SEPTEMBER 30, 2010


	Page
Third Quarter Highlights		3
Investor Information		4
Equity Research Coverage		5
Financial and Operating Highlights		6
Capitalization Summary		7
Portfolio Summary		8
Consolidated Balance Sheets		9
Consolidated Statements of Income		10
FFO		11
AFFO		12
Reconciliation of EBITDA		13
Reconciliation of Net Operating Income		14
Interest Expense		15
Coverage Ratios		16
Debt Summary		17
Debt Analysis		18
Debt Maturities		19
Common and Preferred Stock Data		20
Market Summary		21
Property Listing — Consolidated Portfolio		22-23
Development / Redevelopment / Pre-Development / Development Potential		24
Property Listing — Unconsolidated Partnerships		25
Lease Expirations		26
Expirations by Market		27
10 Largest Tenants		28
Same Property Analysis		29
Acquisitions		30
Leasing Activity		31
Tenant Improvements and Leasing Commissions		32
Non-GAAP Financial Measure Definitions		33
Property Definitions		34

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, reductions in asset valuations and related impairment charges, 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, failure to maintain the company’s investment grade credit ratings with the rating agencies, 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.

THIRD QUARTER HIGHLIGHTS
SEPTEMBER 30, 2010

•

Generated record total revenues for the third quarter of $95.7 million, up 3.0% from $93.0 million in the same period in 2009.

	§		Increased rental revenues for the third quarter by 6.6% to a record $73.0 million from $68.5 million in the same period in 2009.

	§		Increased same property net operating income for the quarter by 6.1% on a cash basis as compared to the same period in 2009.

•

Executed 14 leasing transactions representing approximately 231,700 square feet:

	§		Ten new leases totaling approximately 90,400 square feet.

	§		Four leases amended to extend their terms, totaling approximately 141,300 square feet.

	§		Current operating portfolio 88.2% leased on a weighted average basis.

	§		Same property portfolio 88.2% leased, up 190 basis points as compared to the same period in 2009.

•

Acquired three properties in the University Towne Centre, Torrey Pines and Sorrento Valley life science submarkets of San Diego, California, for a total investment of $93.7 million, including:

	§		4570 Executive Drive, a 100% leased property comprising approximately 125,000 square feet.

	§		10240 Science Center Drive, a 100% leased property comprising approximately 49,000 square feet.

	§		11388 Sorrento Valley Road, a 100% leased property comprising approximately 36,000 square feet.

•		Acquired a development site, including a partially completed life science building of approximately 63,000 square feet and vacant land to support the future construction of an additional 103,000 square feet of laboratory and office space, at 4775 and 4785 Executive Drive in San Diego for approximately $27.3 million.

•		Acquired a 100% leased life science property comprising approximately 61,600 square feet located at Paramount Parkway in North Carolina’s Research Triangle submarket for approximately $17.5 million.

•		Completed a follow-on public offering of common stock, raising approximately $289.5 million in net proceeds.

•		Generated funds from operations (FFO) for the quarter of $35.2 million, or $0.28 per diluted share.

•		Increased the quarterly dividend 13.3% quarter-over-quarter and 54.5% year-over-year to an annualized rate of $0.68 per 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 82 properties, representing 144 buildings with approximately 12.1 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
SEPTEMBER 30, 2010

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

Alan D. Gold
Chairman

Barbara R. Cambon

Edward A. Dennis, Ph.D.

Richard I. Gilchrist

Gary A. Kreitzer

Theodore D. Roth

M. Faye Wilson

Senior Management

Alan D. Gold
Chairman and Chief Executive Officer

R. Kent Griffin, Jr.
President and Chief Operating Officer

Gary A. Kreitzer
Executive Vice President,
General Counsel and Director

Matthew G. McDevitt
Executive Vice President,
Real Estate

Greg N. Lubushkin
Chief Financial Officer

Karen A. Sztraicher
Senior Vice President,
Asset Management

John P. Bonanno
Senior Vice President, Development

Anne L. Hoffman
Senior Vice President,
Development (Bay Area)

Jonathan P. Klassen
Vice President,
Legal and Secretary

Kevin M. Simonsen
Vice President,
Real Estate Counsel

Bruce D. Steel
Managing Director,
Business Development


Tentative Schedule for Quarterly Results
Fourth Quarter 2010		February 9, 2011
First Quarter 2011		May 4, 2011
Second Quarter 2011		August 3, 2011
Third Quarter 2011		November 3, 2011

EQUITY RESEARCH COVERAGE
SEPTEMBER 30, 2010


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

Cowen & Company	James Sullivan / Michael Gorman	(646) 562-1380 / (646) 562-1381	james.sullivan@cowen.com / michael.gorman@cowen.com

Credit Suisse	Andrew Rosivach / Suzanne Kim	(415) 249-7942 / (415) 249-7943	andrew.rosivach@credit-suisse.com / suzanne.kim@credit-suisse.com

FBR Capital Markets	Sri Nagarajan / Evan Smith	(646) 885-5429 / (646) 885-5431	snagarajan@fbr.com / esmith@fbr.com

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

Jefferies & Co.	Omotayo Okusanya / Steven Benyik	(212) 336-7076 / (212) 707-6348	tokusanya@jefferies.com / sbenyik@jefferies.com

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

Macquarie Capital (USA)	Rob Stevenson / Nicholas Yulico	(212) 231-8068 / (212) 231-8028	rob.stevenson@macquarie.com / nicholas.yulico@macquarie.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
SEPTEMBER 30, 2010
(In thousands, except per share and ratio amounts)


	Three months ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Selected Operating Data
Total revenues	$	95,733		$	92,912		$	92,756		$	88,171		$	92,963

EBITDA (1)		55,587			53,696			55,590			48,930			55,745
Adjusted EBITDA (1)		59,932			58,032			59,952			53,181			60,094

Net operating income — cash basis (2)		59,960			59,718			59,173			55,939			59,033

General and administrative expense		6,805			6,449			6,269			6,336			5,712
Acquisition related expenses		420			1,819			150			220			244

Interest expense		21,589			21,870			21,260			20,429			19,614
Capitalized interest		1,191			1,301			1,645			1,860			2,943
Interest incurred including swap payments (3)		22,791			23,411			23,193			22,634			23,259

Operating margin (4)		69.3	%		72.2	%		70.9	%		69.9	%		69.3	%
General and administrative expense / Total revenues		7.1	%		6.9	%		6.8	%		7.2	%		6.1	%

Net income available to common stockholders		4,832			4,199			4,299			477			4,062
Net income per share — diluted	$	0.04		$	0.04		$	0.04		$	0.00		$	0.04

FFO (5)		35,220			33,137			35,487			27,999			35,779
FFO per share — diluted (5)	$	0.28		$	0.27		$	0.32		$	0.28		$	0.35

AFFO (5)		29,698			29,287			30,791			24,245			33,429
AFFO per share — diluted (5)	$	0.23		$	0.24		$	0.27		$	0.24		$	0.33

Dividend per share — common stock	$	0.17		$	0.15		$	0.14		$	0.14		$	0.11

FFO payout ratio (6)		60.7	%		55.6	%		43.8	%		50.0	%		31.4	%
AFFO payout ratio (6)		73.9	%		62.5	%		51.9	%		58.3	%		33.3	%


(1)		For definitions and discussion of EBITDA and adjusted EBITDA, see page 33. For a quantitative reconciliation of the differences between adjusted EBITDA, EBITDA and net income available to common stockholders, see page 13.

(2)		For definitions and discussion of net operating income — cash basis, see page 14.

(3)		Includes interest paid on cash flow hedges classified as accumulated other comprehensive loss. Excludes ineffectiveness recognized on derivative instruments.

(4)		See page 14 for detail.

(5)		For definitions and discussion of FFO and AFFO, see page 33. For a quantitative reconciliation of the differences between FFO, AFFO and net income available to common stockholders, see pages 11 and 12.

(6)		See page 11 for detail of the FFO payout ratio and page 12 for detail of the AFFO payout ratio.

CAPITALIZATION SUMMARY
SEPTEMBER 30, 2010
(In thousands, except per share and ratio amounts)


		9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Capitalization:
Total common shares outstanding			130,831			113,578			100,312			99,000			98,204
Total units outstanding (1)			3,001			3,001			3,038			3,077			3,086

Total common shares and units outstanding			133,832			116,579			103,350			102,077			101,290
Common share price at quarter end		$	17.92		$	16.09		$	16.54		$	15.78		$	13.80

Equity value at quarter end		$	2,398,274		$	1,875,763		$	1,709,412		$	1,610,773		$	1,397,796
Preferred stock at liquidation value			230,000			230,000			230,000			230,000			230,000
Consolidated debt			1,120,820			1,281,237			1,425,136			1,356,300			1,342,800

Total capitalization		$	3,749,094		$	3,387,000		$	3,364,548		$	3,197,073		$	2,970,596


Debt / Total assets			31.4	%		37.4	%		42.4	%		41.3	%		40.8	%
Debt / Total capitalization			29.9	%		37.8	%		42.3	%		42.3	%		45.1	%

Coverage Ratios (2):
Debt / Adjusted EBITDA			4.7			5.5			6.0			6.4			5.6
Interest coverage			3.1			2.9			3.1			2.9			3.4
Fixed charge coverage			2.3			2.2			2.4			2.2			2.6

Total consolidated debt:
Secured debt / Total assets			18.5	%		19.4	%		24.3	%		28.0	%		28.0	%
Floating rate debt / Total debt			1.3	%		13.3	%		38.2	%		47.8	%		42.5	%
Adjusted floating rate debt / Total debt			0.0	%		1.6	%		10.1	%		18.3	%		12.7	%
Unencumbered real estate / Total real estate			63.0	%		61.3	%		60.3	%		59.5	%		59.5	%
Unencumbered CABR / Total CABR (3)			64.7	%		64.7	%		63.7	%		62.2	%		61.4	%

	Covenant
Bond covenants (4):	Requirements

Total Outstanding Debt / Total Assets	Must be £ 60%		29.7	%		35.4	%		—			—			—
Secured Debt / Total Assets	Must be £ 40%		17.4	%		18.2	%		—			—			—
Consolidated Income Available for Debt Service / Annual Debt Service Charge	Must be ³ 1.5X		2.6			2.5			—			—			—
Unencumbered Assets / Unsecured Debt	Must be ³ 150%		536	%		373	%		—			—			—


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

(2)		For discussion of coverage ratios, see page 33. See page 16 for the calculation of interest and fixed charge coverage ratios. See page 13 for calculation of Adjusted EBITDA.

(3)		For discussion of current annualized base rent (CABR), see page 21.

(4)		Calculated in accordance with the covenants contained in the Indenture that governs the terms of the Company’s unsecured senior notes due 2020, which is included as an exhibit to the Company’s Form 8-K filed with the SEC on April 30, 2010.

PORTFOLIO SUMMARY
SEPTEMBER 30, 2010


													Unconsolidated
	Consolidated Portfolio												Partnership Portfolio (1)							Total Portfolio
			Weighted
	Gross		Average					Rentable		Percent					Rentable		Percent					Rentable		Percent
	Book Value		Leased % (2)			Properties		Square Feet		Leased			Properties		Square Feet		Leased			Properties		Square Feet		Leased
	(in thousands)
Stabilized (3)	$	2,459,856		96.6	%		47		5,951,604		98.7	%		4		257,268		100.0	%		51		6,208,872		98.8	%
Lease up (3)		681,289		58.0	%		21		2,754,444		66.1	%		3		697,290		34.9	%		24		3,451,734		59.8	%

Current operating portfolio		3,141,144		88.2	%		68		8,706,048		88.4	%		7		954,558		52.4	%		75		9,660,606		84.8	%
Long-term lease up (4)		290,287		16.2	%		1		1,389,517		16.2	%		—		—		n/a			1		1,389,517		16.2	%

Total operating portfolio		3,431,431		82.1	%		69		10,095,565		78.5	%		7		954,558		52.4	%		76		11,050,123		76.2	%
Development (5)		23,500		100.0	%		1		176,000		100.0	%		—		—		n/a			1		176,000		100.0	%
Redevelopment (5)		—		—			—		—		n/a			—		—		n/a			—		—		n/a
Pre-development (5)		25,202		—			1		152,145		—			—		—		n/a			1		152,145		—

Total property portfolio		3,480,134		81.6	%		71		10,423,710		77.7	%		7		954,558		52.4	%		78		11,378,268		75.6	%

Development potential (5)		43,419							1,680,000														1,680,000

Total portfolio	$	3,523,553							12,103,710														13,058,268


(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 25 for additional detail.

(2)		Calculated based on gross book value for each asset multiplied by the percentage leased.

(3)		See pages 22-23 for detail of consolidated portfolio, page 25 for detail of the unconsolidated partnership portfolio, and page 34 for definitions of terms.

(4)		Includes Pacific Research Center.

(5)		See page 24 for detail of consolidated portfolio, page 25 for detail of the uncosolidated partnership portfolio, and page 34 for definitions of terms.

CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2010
(In thousands)


	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Assets
Investments in real estate, net	$	3,207,957		$	3,075,150		$	3,015,632		$	2,971,767		$	2,978,701
Investments in unconsolidated partnerships		58,565			59,459			55,968			56,909			47,747
Cash and cash equivalents		20,687			21,339			36,800			19,922			30,279
Restricted cash		12,384			11,547			15,304			15,355			15,974
Accounts receivable, net		7,333			2,859			2,501			4,135			5,482
Accrued straight-line rents, net		102,567			96,298			88,981			82,066			75,489
Acquired above-market leases, net		3,796			2,436			2,741			3,047			3,368
Deferred leasing costs, net		88,828			80,373			81,539			83,274			85,926
Deferred loan costs, net		12,394			12,825			12,124			8,123			7,794
Other assets		58,042			65,935			48,605			38,676			43,051

Total assets	$	3,572,553		$	3,428,221		$	3,360,195		$	3,283,274		$	3,293,811


Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	662,522		$	664,867		$	667,175		$	669,454		$	671,693
Secured term loan		—			—			150,000			250,000			250,000
Exchangeable senior notes due 2026, net		19,432			21,396			38,804			44,685			103,524
Exchangeable senior notes due 2030		180,000			180,000			180,000			—			—
Unsecured senior notes due 2020, net		247,523			247,475			—			—			—
Unsecured line of credit		14,050			170,500			394,564			397,666			321,124
Security deposits		10,883			10,352			8,003			7,929			7,187
Dividends and distributions payable		26,992			21,728			18,710			18,531			15,383
Accounts payable, accrued expenses and other liabilities		75,319			50,720			49,532			47,388			71,389
Derivative instruments		5,453			6,631			9,568			12,551			15,948
Acquired below-market leases, net		8,031			9,039			10,062			11,138			12,344

Total liabilities		1,250,205			1,382,708			1,526,418			1,459,342			1,468,592

Equity:
Stockholders’ equity:
Preferred stock		222,413			222,413			222,413			222,413			222,413
Common stock		1,308			1,136			1,003			990			982
Additional paid-in capital		2,369,952			2,079,153			1,858,212			1,843,551			1,833,898
Accumulated other comprehensive loss		(73,840	)		(77,049	)		(81,380	)		(85,183	)		(88,894	)
Dividends in excess of earnings		(207,419	)		(190,010	)		(177,173	)		(167,429	)		(154,045	)

Total stockholders’ equity		2,312,414			2,035,643			1,823,075			1,814,342			1,814,354
Noncontrolling interests		9,934			9,870			10,702			9,590			10,865

Total equity		2,322,348			2,045,513			1,833,777			1,823,932			1,825,219

Total liabilities and equity	$	3,572,553		$	3,428,221		$	3,360,195		$	3,283,274		$	3,293,811

CONSOLIDATED STATEMENTS OF INCOME
SEPTEMBER 30, 2010
(In thousands, except share and per share data)


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Revenues:
Rental	$	72,971		$	72,380		$	70,600		$	67,294		$	68,472
Tenant recoveries		22,723			20,273			20,826			19,895			19,240
Other income		39			259			1,330			982			5,251

Total revenues		95,733			92,912			92,756			88,171			92,963

Expenses:
Rental operations		19,998			17,077			17,851			17,675			18,726
Real estate taxes		9,408			8,703			8,722			8,532			8,233
Depreciation and amortization		27,774			26,469			28,915			26,853			30,953
General and administrative		6,805			6,449			6,269			6,336			5,712
Acquisition related expenses		420			1,819			150			220			244

Total expenses		64,405			60,517			61,907			59,616			63,868

Income from operations		31,328			32,395			30,849			28,555			29,095
Equity in net loss of unconsolidated partnerships		(308	)		(100	)		(277	)		(506	)		(1,118	)
Interest income		55			51			20			82			62
Interest expense		(21,589	)		(21,870	)		(21,260	)		(20,429	)		(19,614	)
(Loss)/gain on derivative instruments		(287	)		(497	)		150			(86	)		(14	)
Loss on extinguishment of debt		(22	)		(1,444	)		(821	)		(2,888	)		—

Net income		9,177			8,535			8,661			4,728			8,411
Net income attributable to noncontrolling interests		(104	)		(95	)		(121	)		(10	)		(108	)

Net income attributable to Company		9,073			8,440			8,540			4,718			8,303
Preferred stock dividends		(4,241	)		(4,241	)		(4,241	)		(4,241	)		(4,241	)

Net income available to common stockholders	$	4,832		$	4,199		$	4,299		$	477		$	4,062


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


Weighted-average common shares outstanding:
Basic		112,910,694			109,707,274			98,229,996			97,706,262			97,315,601

Diluted		115,911,944			113,956,077			102,577,329			101,666,673			101,289,458

FFO (1)
SEPTEMBER 30, 2010
(In thousands, except per share and ratio amounts)


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net income available to common stockholders	$	4,832		$	4,199		$	4,299		$	477		$	4,062
Adjustments:
Noncontrolling interests in operating partnership		122			109			127			30			122
Depreciation & amortization — unconsolidated partnerships		835			694			662			662			662
Depreciation & amortization — consolidated entities		27,774			26,469			28,915			26,853			30,953
Depreciation & amortization — allocable to noncontrolling interests of consolidated joint ventures		(24	)		(22	)		(22	)		(23	)		(20	)

FFO	$	33,539		$	31,449		$	33,981		$	27,999		$	35,779

FFO per share	$	0.29		$	0.28		$	0.33		$	0.28		$	0.35


FFO	$	33,539		$	31,449		$	33,981		$	27,999		$	35,779
Interest expense — exchangeable notes due 2030 (2)		1,681			1,688			1,506			—			—

FFO — diluted	$	35,220		$	33,137		$	35,487		$	27,999		$	35,779

FFO per share diluted (2)	$	0.28		$	0.27		$	0.32		$	0.28		$	0.35

Dividends and distributions declared per common share	$	0.17		$	0.15		$	0.14		$	0.14		$	0.11

FFO payout ratio		60.7	%		55.6	%		43.8	%		50.0	%		31.4	%


Weighted-average common shares outstanding diluted (3)		117,139,883			113,956,077			102,577,329			101,666,673			101,289,458
Dilutive effect of exchangeable notes due 2030 (2)		9,914,076			9,914,076			9,914,076			—			—

Weighted-average common shares outstanding diluted — FFO		127,053,959			123,870,153			112,491,405			101,666,673			101,289,458


(1)		For definitions and discussion of FFO see page 33.

(2)		The calculation of FFO per share diluted includes the assumed issuance of common stock pursuant to the exchange provision of the exchangeable notes due 2030, which is dilutive based on the “if converted” method for all periods presented since the original issuance in January 2010. Under the if converted method, if the add back of interest charges relating to the exchangeable notes due 2030 divided by the corresponding number of common shares issuable upon exchange is dilutive, the potentially issuable shares are included in the calculation of FFO per diluted share.

(3)		The three months ended September 30, 2010 includes 1,227,939 shares of unvested restricted stock, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

AFFO (1)
SEPTEMBER 30, 2010
(In thousands, except per share and ratio amounts)


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO	$	35,220		$	33,137		$	35,487		$	27,999		$	35,779
Adjustments:
Recurring capital expenditures and tenant improvements (2)		(3,208	)		(1,817	)		(2,834	)		(978	)		(273	)
Leasing commissions		(1,507	)		(1,494	)		(424	)		(3,471	)		(399	)
Loss on extinguishment of debt		22			1,444			821			2,888			—
Loss/(gain) on derivative instruments		287			497			(150	)		86			14
Amortization of deferred interest costs		1,776			1,781			1,786			1,791			1,797
Amortization of deferred loan costs		1,039			1,040			1,143			784			803
Amortization of fair-value of debt acquired		(476	)		(474	)		(467	)		(467	)		(466	)
Amortization of debt discount		179			208			177			427			447
Amortization of lease incentive		587			535			500			328			312
Depreciation included in general and administrative expense		363			359			347			396			366
Non-cash equity compensation		1,802			1,725			1,789			1,462			1,376
Straight line rents		(6,113	)		(7,151	)		(6,733	)		(6,358	)		(6,222	)
Share of unconsolidated partnership adjustments (3)		423			433			243			244			781
Fair-value lease revenue		(696	)		(936	)		(894	)		(886	)		(886	)

AFFO	$	29,698		$	29,287		$	30,791		$	24,245		$	33,429

AFFO per share — diluted	$	0.23		$	0.24		$	0.27		$	0.24		$	0.33

Dividends and distributions declared per common share	$	0.17		$	0.15		$	0.14		$	0.14		$	0.11

AFFO payout ratio		73.9	%		62.5	%		51.9	%		58.3	%		33.3	%


(1)		For definitions and discussion of AFFO see page 33.

(2)		Excludes value-enhancing / first generation capital expenditures and tenant improvements.

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

RECONCILIATION OF EBITDA (1)
SEPTEMBER 30, 2010
(In thousands)


	Three Months Ended
	9/30/10		6/30/10		3/31/10		12/31/09		9/30/09
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	4,832	$	4,199	$	4,299	$	477	$	4,062
Interest expense		21,589		21,870		21,260		20,429		19,614
Interest expense — unconsolidated partnerships		557		464		454		509		454
Depreciation & amortization — consolidated entities		27,774		26,469		28,915		26,853		30,953
Depreciation & amortization — unconsolidated partnerships		835		694		662		662		662

EBITDA		55,587		53,696		55,590		48,930		55,745
Noncontrolling interests		104		95		121		10		108
Preferred dividends		4,241		4,241		4,241		4,241		4,241

Adjusted EBITDA	$	59,932	$	58,032	$	59,952	$	53,181	$	60,094


(1)		For definitions and discussion of EBITDA and Adjusted EBITDA, see page 33.

RECONCILIATION OF NET OPERATING INCOME (1)
SEPTEMBER 30, 2010
(Dollars in thousands)


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Net income	$	9,177		$	8,535		$	8,661		$	4,728		$	8,411
Equity in net loss of unconsolidated partnerships		308			100			277			506			1,118
Interest expense		21,589			21,870			21,260			20,429			19,614
Interest income		(55	)		(51	)		(20	)		(82	)		(62	)
Loss/(gain) on derivative instruments		287			497			(150	)		86			14
Loss on extinguishment of debt		22			1,444			821			2,888			—

Income from operations		31,328			32,395			30,849			28,555			29,095
Depreciation and amortization		27,774			26,469			28,915			26,853			30,953
General and administrative		6,805			6,449			6,269			6,336			5,712
Acquisition related expenses		420			1,819			150			220			244

Consolidated net operating income	$	66,327		$	67,132		$	66,183		$	61,964		$	66,004


Revenues:
Rental	$	72,971		$	72,380		$	70,600		$	67,294		$	68,472
Tenant recoveries		22,723			20,273			20,826			19,895			19,240
Other income		39			259			1,330			982			5,251

Total revenues		95,733			92,912			92,756			88,171			92,963

Expenses:
Rental operations		19,998			17,077			17,851			17,675			18,726
Real estate taxes		9,408			8,703			8,722			8,532			8,233

Total operating expenses		29,406			25,780			26,573			26,207			26,959

Consolidated net operating income	$	66,327		$	67,132		$	66,183		$	61,964		$	66,004

Consolidated net operating income — cash basis (2)	$	59,960		$	59,718		$	59,173		$	55,939		$	59,033


Operating margin (3)		69.3	%		72.2	%		70.9	%		69.9	%		69.3	%

Operating expense recovery (4)		77.3	%		78.6	%		78.4	%		75.9	%		71.4	%


(1)		For a definition and discussion of net operating income, see page 33.

(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 EXPENSE
SEPTEMBER 30, 2010
(Dollars in thousands)


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Mortgage notes payable	$	11,838		$	11,845		$	11,858		$	11,953		$	12,148
Secured term loan		—			222			1,170			1,209			1,236
Exchangeable senior notes due 2026		234			444			457			1,055			1,208
Exchangeable senior notes due 2030		1,681			1,688			1,506			—			—
Unsecured senior notes due 2020		3,829			2,637			—			—			—
Unsecured line of credit		1,004			933			1,152			1,335			1,263
Derivative instruments		1,676			2,847			4,123			4,202			4,121

Interest expense — cash basis	$	20,262		$	20,616		$	20,266		$	19,754		$	19,976


Non cash interest expense
Amortization of fair-value of debt acquired		(476	)		(474	)		(467	)		(467	)		(466	)
Amortization of debt discount on exchangeable senior notes due 2026		132			175			177			427			447
Amortization of debt discount on unsecured senior notes due 2020		47			33			—			—			—
Amortization of deferred loan costs		1,039			1,040			1,143			784			803
Amortization of deferred interest costs		1,776			1,781			1,786			1,791			1,797
Capitalized interest		(1,191	)		(1,301	)		(1,645	)		(1,860	)		(2,943	)

Interest expense	$	21,589		$	21,870		$	21,260		$	20,429		$	19,614

COVERAGE RATIOS (1)

SEPTEMBER 30, 2010

(In thousands, except ratios)


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Interest coverage ratio
Adjusted EBITDA	$	59,932		$	58,032		$	59,952		$	53,181		$	60,094
Interest expense:
Interest expense		21,589			21,870			21,260			20,429			19,614
Interest expense — unconsolidated partnerships		557			464			454			509			454
Amortization of deferred interest costs		(1,776	)		(1,781	)		(1,786	)		(1,791	)		(1,797	)
Amortization of deferred loan costs		(1,039	)		(1,040	)		(1,143	)		(784	)		(803	)
Amortization of debt discount		(179	)		(208	)		(177	)		(427	)		(447	)
Amortization of fair-value of debt acquired		476			474			467			467			466

Total interest expense	$	19,628		$	19,779		$	19,075		$	18,403		$	17,487


Interest coverage ratio		3.1			2.9			3.1			2.9			3.4


Fixed charge coverage ratio
Adjusted EBITDA	$	59,932		$	58,032		$	59,952		$	53,181		$	60,094
Fixed charges:
Interest expense		21,589			21,870			21,260			20,429			19,614
Interest expense — unconsolidated partnerships		557			464			454			509			454
Amortization of deferred interest costs		(1,776	)		(1,781	)		(1,786	)		(1,791	)		(1,797	)
Amortization of deferred loan costs		(1,039	)		(1,040	)		(1,143	)		(784	)		(803	)
Amortization of debt discount		(179	)		(208	)		(177	)		(427	)		(447	)
Amortization of fair-value of debt acquired		476			474			467			467			466
Principal payments		1,868			1,834			1,812			1,773			1,488
Principal payments — unconsolidated partnerships		—			—			—			8			8
Preferred dividends		4,241			4,241			4,241			4,241			4,241

Total fixed charges	$	25,737		$	25,854		$	25,128		$	24,425		$	23,224


Fixed charge coverage ratio		2.3			2.2			2.4			2.2			2.6


(1)		For a discussion of coverage ratios, see page 33.

DEBT SUMMARY

SEPTEMBER 30, 2010

(Dollars in thousands)


									Unamortized
	Stated			Effective			Principal		Premium /			Carrying		Maturity
Consolidated debt:	Rate			Rate			Balance		(Discount)			Value		Date
Mortgage notes payable (1):
Ardentech Court		7.25	%		5.06	%	$	4,267	$	159		$	4,426		07/12
Bridgeview Technology Park I (1)		8.07	%		5.04	%		11,136		114			11,250		01/11
Center for Life Science \| Boston		7.75	%		7.75	%		346,396		—			346,396		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		64,703		3,388			68,091		12/18
Lucent Drive		4.75	%		4.75	%		4,954		—			4,954		01/15
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,515		226			6,741		09/12
Road to the Cure		6.70	%		5.78	%		14,762		408			15,170		01/14
Science Center Drive		7.65	%		5.04	%		10,847		234			11,081		07/11
Shady Grove Road		5.97	%		5.97	%		147,000		—			147,000		09/16
Sidney Street		7.23	%		5.11	%		27,633		950			28,583		06/12
9865 Towne Centre Drive		7.95	%		7.95	%		17,700		—			17,700		06/13
900 Uniqema Boulevard		8.61	%		5.61	%		1,057		73			1,130		05/15

Total / weighted average on fixed rate mortgages		7.15	%		6.82	%		656,970		5,552			662,522
Fixed rate debt:
Unsecured exchangeable senior notes due 2026		4.50	%		6.45	%		19,800		(368	)		19,432		10/26
Unsecured exchangeable senior notes due 2030		3.75	%		3.75	%		180,000		—			180,000		01/30
Unsecured senior notes due 2020		6.13	%		6.27	%		250,000		(2,477	)		247,523		04/20

Total / weighted average fixed rate debt		6.32	%		6.19	%		1,106,770		2,707			1,109,477
Variable rate debt:
$720 million unsecured line of credit		1.36	%		1.36	%		14,050		—			14,050		08/11

Total / weighted average variable rate debt		1.36	%		1.36	%		14,050		—			14,050

Total / weighted average consolidated debt		6.26	%		6.13	%	$	1,120,820	$	2,707		$	1,123,527


Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)		3.76	%		3.76	%	$	40,650	$	—		$	40,650		02/11
PREI secured construction loan (20%) (variable)		1.76	%		1.76	%		40,070		—			40,070		04/11

Total / weighted average share of unconsolidated partnership debt		2.77	%		2.77	%		80,720		—			80,720


Total / weighted average consolidated and share of unconsolidated partnership debt		6.02	%		5.90	%	$	1,201,540	$	2,707		$	1,204,247


(1)		Subsequent to quarter end the Bridgeview Technology Park I note was repaid in full, and a $13.3 million loan was been assumed in connection with the Company’s Sorrento West acquisition.

DEBT ANALYSIS

SEPTEMBER 30, 2010

(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	$	656,970		58.6	%		7.15	%		6.82	%

Unsecured debt		463,850		41.4	%		4.99	%		5.28	%


Total consolidated debt	$	1,120,820		100.0	%		6.26	%		6.18	%

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	$	1,106,770		98.7	%		6.32	%		6.19	%

Variable rate debt — hedged		14,050		1.3	%		1.36	%		5.80	%


Total consolidated debt	$	1,120,820		100.0	%		6.26	%		6.18	%

DEBT MATURITIES

SEPTEMBER 30, 2010

(In thousands)

Weighted average debt maturity is 8.1 years for consolidated debt.


	2010		2011		2012		2013		2014		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	1,890	$	29,914	$	45,414	$	25,941	$	353,091	$	200,720	$	656,970
Unsecured exchangeable senior notes due 2026 (1)		—		—		—		—		—		19,800		19,800
Unsecured exchangeable senior notes due 2030 (2)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000

Total fixed rate debt		1,890		29,914		45,414		25,941		353,091		650,520		1,106,770
Variable rate debt:
$720 million unsecured line of credit (3)		—		14,050		—		—		—		—		14,050

Total variable rate debt		—		14,050		—		—		—		—		14,050

Total consolidated debt	$	1,890	$	43,964	$	45,414	$	25,941	$	353,091	$	650,520	$	1,120,820


Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable) (4)	$	—	$	40,650	$	—	$	—	$	—	$	—	$	40,650
PREI secured construction loan (20%) (variable) (5)		—		40,070		—		—		—		—		40,070

Share of total unconsolidated partnership debt	$	—	$	80,720	$	—	$	—	$	—	$	—	$	80,720


Total consolidated and share of unconsolidated partnership debt	$	1,890	$	124,684	$	45,414	$	25,941	$	353,091	$	650,520	$	1,201,540


(1)		The holders of the unsecured exchangeable senior notes due 2026 (the “2026 Notes”) have the right to require the Company to repurchase the 2026 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 2026 Notes plus accrued and unpaid interest.

(2)		The holders of the unsecured exchangeable senior notes due 2030 (the “2030 Notes”) have the right to require the Company to repurchase the 2030 Notes, in whole or in part, for cash on each of January 15, 2015, January 15, 2020 and January 15, 2025, or upon the occurrence of a designated event, in each case for a repurchase price equal to 100% of the principal amount of the 2030 Notes plus accrued and unpaid interest.

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

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

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

COMMON AND PREFERRED STOCK DATA
SEPTEMBER 30, 2010
(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Earnings per share
Weighted average common shares outstanding		112,911			109,707			98,229			97,707			97,316
Weighted average OP and LTIP units outstanding		3,001			3,019			3,058			3,081			3,152
Dilutive effect of restricted stock		—			1,230			1,290			879			822

Diluted common shares — EPS		115,912			113,956			102,577			101,667			101,290


Funds from operations
Weighted average common shares outstanding		112,911			109,707			98,229			97,707			97,316
Weighted average OP and LTIP units outstanding		3,001			3,019			3,058			3,081			3,152
Dilutive effect of restricted stock		1,228			1,230			1,290			879			822
Dilutive effect of exchangeable notes due 2030		9,914			9,914			9,914			—			—

Diluted common shares — FFO		127,054			123,870			112,491			101,667			101,290


Closing common shares, OP and LTIP units outstanding		133,832			116,579			103,350			102,077			101,290
Preferred shares outstanding		9,200			9,200			9,200			9,200			9,200

High price	$	19.25		$	19.50		$	17.88		$	16.59		$	15.31
Low price	$	14.79		$	15.04		$	13.36		$	12.62		$	9.16
Average closing price	$	17.52		$	17.39		$	15.70		$	14.16		$	12.41
Closing price	$	17.92		$	16.09		$	16.54		$	15.78		$	13.80
Dividends per share — annualized	$	0.68		$	0.60		$	0.56		$	0.56		$	0.44
Closing dividend yield — annualized		3.8	%		3.7	%		3.4	%		3.5	%		3.2	%

DIVIDENDS PER SHARE

	9/30/10			6/30/10			3/31/10			12/31/09			9/30/09
Common Stock — BMR
Amount	$	0.17		$	0.15		$	0.14		$	0.14		$	0.11
Declared	September 15, 2010			June 15, 2010			March 15, 2010			December 15, 2009			September 15, 2009
Record	September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009
Paid	October 15, 2010			July 15, 2010			April 15, 2010			January 15, 2010			October 15, 2009

Preferred Stock — BMR PrA
Amount	$	0.46094		$	0.46094		$	0.46094		$	0.46094		$	0.46094
Declared	September 15, 2010			June 15, 2010			March 15, 2010			December 15, 2009			September 15, 2009
Record	September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009
Paid	October 15, 2010			July 15, 2010			April 15, 2010			January 15, 2010			October 15, 2009

MARKET SUMMARY
SEPTEMBER 30, 2010


			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		2,256,108	$	121,312		37.9	%	$	53.77	$	130,840		34.6	%	$	57.99
Maryland		1,502,766		54,266		17.0	%		36.11		70,858		18.7	%		47.15
San Diego		1,467,842		47,355		14.9	%		32.26		61,807		16.4	%		42.11
New York / New Jersey		1,051,594		35,392		11.1	%		33.66		43,435		11.5	%		41.30
San Francisco		1,118,586		26,985		8.5	%		24.12		33,954		9.0	%		30.35
Pennsylvania		710,005		15,784		5.0	%		22.23		17,133		4.5	%		24.13
Seattle		178,961		7,868		2.5	%		43.96		9,263		2.5	%		51.76
University Related — Other		311,110		9,762		3.1	%		31.38		10,697		2.8	%		34.38

Total portfolio / weighted average		8,596,972	$	318,724		100.0	%	$	37.07	$	377,987		100.0	%	$	43.97


(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 options(s)), multiplied by 12 months.

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
SEPTEMBER 30, 2010


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		9/30/10			6/30/10
	Boston
1	Albany Street	May 31, 2005	Stabilized		2		75,003		0.7	%		75,003		100.0	%		100.0	%
2	Center for Life Science¦Boston	November 17, 2006	Stabilized		1		704,159		6.6	%		641,438		91.1	%		91.1	%
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	%		12,972		34.7	%		34.7	%
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		1.0	%		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		2.9	%		298,871		98.7	%		98.7	%
10	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		3.4	%		344,097		98.5	%		98.9	%
11	Sidney Street	May 31, 2005	Stabilized		1		191,904		1.8	%		191,904		100.0	%		100.0	%
12	Vassar Street	May 31, 2005	Lease Up		1		52,520		0.5	%		—		—			100.0	%

	Total Boston				18		2,001,325		19.2	%		1,828,374		91.4	%		94.1	%


	Maryland
13	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.7	%		77,225		100.0	%		100.0	%
14	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.8	%		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	Medical Center Drive	May 3, 2010	Stabilized		5		217,983		2.1	%		217,983		100.0	%		100.0	%
17	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		6.1	%		635,058		100.0	%		100.0	%
18	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.9	%		91,592		100.0	%		100.0	%
19	50 West Watkins Mill Road	May 7, 2010	Stabilized		1		57,410		0.6	%		57,410		100.0	%		100.0	%
20	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.8	%		82,405		100.0	%		100.0	%

	Total Maryland				16		1,502,766		14.5	%		1,502,766		100.0	%		100.0	%


	San Diego
21	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
22	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.6	%		61,286		100.0	%		100.0	%
23	4570 Executive Drive	September 17, 2010	Stabilized		1		125,219		1.2	%		125,219		100.0	%		n/a
24	4775 / 4785 Executive Drive	July 15, 2010	Lease Up		1		62,896		0.6	%		—		—			n/a
25	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.3	%		28,704		100.0	%		100.0	%
26	Gazelle Court	March 30, 2010	Development		1		176,000		1.7	%		176,000		100.0	%		100.0	%
27	John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.7	%		21,470		29.7	%		29.7	%
28	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		1.9	%		196,557		100.0	%		100.0	%
29	6828 Nancy Ridge Drive	April 21, 2005	Lease Up		1		42,138		0.4	%		24,431		58.0	%		58.0	%
30	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.6	%		66,745		100.0	%		100.0	%
31	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.7	%		54,104		79.6	%		79.6	%
32	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		1.0	%		80,173		76.1	%		76.0	%
33	10240 Science Center Drive	September 23, 2010	Stabilized		1		49,347		0.5	%		49,347		100.0	%		n/a
34	10255 Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.5	%		53,740		100.0	%		100.0	%
35	Sorrento Valley Boulevard	December 7, 2006	Stabilized		1		54,924		0.5	%		54,924		100.0	%		100.0	%
36	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.3	%		35,940		100.0	%		n/a
37	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.8	%		81,204		100.0	%		100.0	%
38	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.9	%		94,866		100.0	%		100.0	%
39	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		1.0	%		104,870		100.0	%		100.0	%
40	Waples Street	March 1, 2005	Stabilized		1		50,055		0.5	%		50,055		100.0	%		100.0	%

	Total San Diego				25		1,565,389		15.0	%		1,394,979		89.1	%		91.7	%

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
SEPTEMBER 30, 2010


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		9/30/10			6/30/10
	New York / New Jersey
41	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.7	%		64,960		89.8	%		25.7	%
42	Landmark at Eastview	August 12, 2004	Lease Up		5		743,941		7.1	%		626,114		84.2	%		83.3	%
43	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		3.5	%		360,520		100.0	%		100.0	%
44	One Research Way	May 31, 2006	Lease Up		1		49,421		0.5	%		—		—			—

	Total New York / New Jersey				10		1,226,182		11.8	%		1,051,594		85.8	%		81.5	%


	San Francisco
45	Ardentech Court	November 18, 2004	Stabilized		1		55,588		0.5	%		55,588		100.0	%		100.0	%
46	Ardenwood Venture (2)	June 14, 2006	Lease Up		1		72,500		0.7	%		27,620		38.1	%		38.1	%
47	Bayshore Boulevard	August 17, 2004	Stabilized		3		183,344		1.8	%		183,344		100.0	%		100.0	%
48	Bridgeview Technology Park I	September 10, 2004	Lease Up		2		201,567		1.9	%		125,144		62.1	%		62.1	%
49	Bridgeview Technology Park II	March 16, 2005	Lease Up		1		50,400		0.5	%		25,200		50.0	%		—
50	Dumbarton Circle	May 27, 2005	Stabilized		3		44,000		0.4	%		44,000		100.0	%		100.0	%
51	Eccles Avenue	December 1, 2005	Pre-development		1		152,145		1.5	%		—		—			—
52	Forbes Boulevard	September 5, 2007	Stabilized		1		237,984		2.3	%		237,984		100.0	%		100.0	%
53	Industrial Road	August 17, 2004	Lease Up		1		171,965		1.6	%		144,105		83.8	%		83.8	%
54	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.8	%		50,000		56.8	%		56.8	%
55	Pacific Research Center	July 11, 2006	Lease Up		10		1,389,517		13.3	%		225,601		16.2	%		26.6	%

	Total San Francisco				25		2,646,963		25.3	%		1,118,586		42.3	%		46.7	%


	Pennsylvania
56	Eisenhower Road	August 13, 2004	Lease Up		1		27,750		0.3	%		16,565		59.7	%		59.7	%
57	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.7	%		71,500		100.0	%		100.0	%
58	King of Prussia	August 11, 2004	Lease Up		5		427,109		4.1	%		374,387		87.7	%		87.7	%
59	Phoenixville Pike	May 5, 2005	Stabilized		1		104,400		1.0	%		99,878		95.7	%		100.0	%
60	Spring Mill Drive	July 20, 2006	Stabilized		1		76,561		0.7	%		76,561		100.0	%		100.0	%
61	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
62	1000 Uniqema Boulevard	September 30, 2005	Stabilized		1		59,821		0.6	%		59,821		100.0	%		100.0	%

	Total Pennsylvania				11		778,434		7.5	%		710,005		91.2	%		91.8	%


	Seattle
63	Elliott Avenue	August 24, 2004	Lease Up		1		154,341		1.5	%		—		—			—
64	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
65	530 Fairview Avenue	January 12, 2006	Lease Up		1		96,188		0.9	%		63,120		65.6	%		65.6	%
66	Monte Villa Parkway	August 17, 2004	Stabilized		1		51,000		0.5	%		51,000		100.0	%		100.0	%
67	217th Place	November 21, 2006	Lease Up		1		67,799		0.7	%		42,628		62.9	%		62.9	%

	Total Seattle				5		391,541		3.8	%		178,961		45.7	%		45.7	%


	University Related — Other
68	Lucent Drive	May 31, 2005	Stabilized		1		21,500		0.2	%		21,500		100.0	%		100.0	%
69	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.6	%		61,603		100.0	%		n/a
70	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.7	%		78,023		100.0	%		100.0	%
71	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.4	%		149,984		100.0	%		100.0	%
	Total University Related — Other				8		311,110		2.9	%		311,110		100.0	%		100.0	%

	Total / weighted average				118		10,423,710		100.0	%		8,096,375		77.7	%		78.8	%


(1)		For a definition of Property Status, see page 34.

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

DEVELOPMENT / REDEVELOPMENT / PRE-DEVELOPMENT / DEVELOPMENT POTENTIAL
SEPTEMBER 30, 2010
(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:
Gazelle Court	San Diego		176,000		100.0	%		—	$	19,800	$	77,500		Q1 2012

REDEVELOPMENT:
N/A	N/A		—		—			—		—		—		—


Total / weighted average			176,000		100.0	%		—	$	19,800	$	77,500

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

—

25,000

TBD

DEVELOPMENT POTENTIAL:


	Estimated
	Developable
Market	Square Feet
Boston		50,000
Maryland		529,000
San Diego		103,000
New York / New Jersey		326,000
San Francisco		508,000
Pennsylvania		50,000
Seattle		114,000

Total		1,680,000


(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. The net new square feet is captured in development potential.

PROPERTY LISTING — UNCONSOLIDATED PARTNERSHIPS
SEPTEMBER 30, 2010
(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

9/30/10

6/30/10

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

243,329

58.3

58.4

Boston

301 Binney Garage

April 4, 2007

Lease Up

503 Stalls

n/a

Boston

650 E. Kendall Street (Kendall B)

April 4, 2007

Lease Up

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 (2)			PREI			Total
Total assets	$	14,926		$	654,205		$	669,131
Total debt (3)		10,280			403,600			413,880
Current annualized base rent		1,845			25,898			27,743

BioMed’s net investment in unconsolidated partnerships	$	12,579		$	45,986		$	58,565
BioMed’s pro rata share of debt		—			80,720			80,720
BioMed ownership percentage		22	%		20	%		20	%


(1)		For a definition of Property Status, see page 34.

(2)		The Company owns a general partnership interest in the limited partnership that owns this property, which entitles it to 75% of the gains upon a sale of the property and 22% of the operating cash flows.

(3)		McKellar Court’s debt is payable to BioMed Realty, L.P. and is included in investments in unconsolidated partnerships on the Company’s consolidated balance sheet.

LEASE EXPIRATIONS
SEPTEMBER 30, 2010

Weighted average remaining lease term is 8.5 years for the consolidated portfolio and 8.3 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		34,211		0.4	%	$	633		0.2	%	$	18.50	$	633		0.2	%	$	18.50
Fourth quarter 2010		186,516		2.2	%		3,714		1.2	%		19.91		3,714		1.0	%		19.91

2010		220,727		2.6	%		4,347		1.4	%		19.69		4,347		1.2	%		19.69
2011		389,732		4.5	%		8,527		2.7	%		21.88		8,610		2.3	%		22.09
2012		337,132		3.9	%		7,822		2.5	%		23.20		8,084		2.1	%		23.98
2013		600,960		7.0	%		14,574		4.6	%		24.25		16,091		4.3	%		26.78
2014		698,819		8.1	%		16,959		5.3	%		24.27		18,328		4.8	%		26.23
2015		273,329		3.2	%		8,690		2.7	%		31.79		9,291		2.5	%		33.99
2016		1,193,066		13.9	%		46,345		14.5	%		38.85		53,947		14.3	%		45.22
2017		118,045		1.4	%		3,474		1.1	%		29.43		4,213		1.1	%		35.69
2018		1,069,020		12.4	%		48,742		15.3	%		45.60		54,872		14.5	%		51.33
2019		270,150		3.1	%		7,600		2.4	%		28.13		9,661		2.6	%		35.76
Thereafter		3,425,992		39.9	%		151,644		47.5	%		44.26		190,543		50.3	%		55.62


Total / weighted average		8,596,972		100.0	%	$	318,724		100.0	%	$	37.07	$	377,987		100.0	%	$	43.97


(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 montly contractual rent as of the date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

EXPIRATIONS BY MARKET
SEPTEMBER 30, 2010


	Leased Square Feet
Expiration	Boston		Maryland		San Diego		NY/NJ		San Francisco		Pennsylvania		Seattle		University/Other		Total
2010		54,251		—		15,960		31,524		118,992		—		—		—		220,727
2011		37,388		113,784		83,678		27,521		—		127,361		—		—		389,732
2012		21,705		—		118,676		55,546		118,992		—		22,213		—		337,132
2013		12,972		—		178,008		136,594		225,106		44,318		3,962		—		600,960
2014		28,019		121,414		89,744		—		—		396,776		41,366		21,500		698,819
2015		—		—		180,626		—		57,950		34,753		—		—		273,329
2016		618,161		—		—		10,555		171,348		71,500		31,892		289,610		1,193,066
2017		—		51,181		21,470		45,394		—		—		—		—		118,045
2018		807,347		—		97,455		—		121,590		—		42,628		—		1,069,020
2019		2,676		168,817		—		—		61,757		—		36,900		—		270,150
Thereafter		673,589		1,047,570		682,225		744,460		242,851		35,297		—		—		3,425,992


Total		2,256,108		1,502,766		1,467,842		1,051,594		1,118,586		710,005		178,961		311,110		8,596,972

10 LARGEST TENANTS
SEPTEMBER 30, 2010

BioMed’s properties were leased to 136 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		10.8	%	$	42,756	$	46.22		13.4	%	June 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		8.0	%		31,055		45.32		9.7	%	Multiple
3	Beth Israel Deaconess Medical Center, Inc.		362,364		4.2	%		25,543		70.49		8.0	%	July 2023
4	Regeneron Pharmaceuticals, Inc. (3)		552,029		6.4	%		22,682		41.09		7.1	%	Multiple
5	Genzyme Corporation		343,000		4.0	%		15,464		45.08		4.9	%	August 2018
6	Ironwood Pharmaceuticals, Inc. (4)		202,747		2.4	%		11,153		55.01		3.5	%	Multiple
7	Merck & Co., Inc. (5)		184,357		2.1	%		9,457		51.30		3.0	%	Multiple
8	Children’s Hospital Corporation		150,215		1.7	%		9,053		60.27		2.8	%	May 2023
9	Centocor Ortho Biotech, Inc. (Johnson & Johnson)		374,387		4.4	%		8,490		22.68		2.7	%	April 2014
10	Array BioPharma, Inc. (6)		228,007		2.7	%		7,538		33.06		2.4	%	Multiple


	Total / weighted average (7)		4,007,362		46.7	%	$	183,191	$	45.71		57.5	%


(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)		5,833 square feet is on a month-to-month basis, 16,725 square feet expires March 2011, 6,568 square feet expires August 2011, and 522,903 square feet expires July 2024.

(4)		The Company owns 20% of the limited liability company that owns 320 Bent and 301 Binney, properties at which this tenant leases 202,747 square feet. 39,101 square feet expires December 2010 and 163,646 square feet expires January 2016.

(5)		The Company owns 20% of the limited liability company that owns 320 Bent, a property at which this tenant leases 145,304 square feet. This tenant also guarantees rent on 39,053 square feet leased at Landmark at Eastview. 39,053 square feet expires July 2012 and 145,304 square feet expires September 2016.

(6)		149,984 square feet expires July 2016 and 78,023 square feet expires August 2016.

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

SAME PROPERTY ANALYSIS
SEPTEMBER 30, 2010
(Dollars in thousands)


	Quarter Ended
	9/30/10			9/30/09			Percent Change
Total Same Property Portfolio (1)
Number of properties		64			64
Rentable square feet		8,172,942			8,172,942
Percent of total portfolio		71.8	%		77.7	%
Percent leased		88.2	%		86.3	%

Revenues:
Rental	$	69,302		$	68,938			0.5	%
Tenant recoveries		25,126			21,825			15.1	%

Total revenues		94,428			90,763			4.0	%


Expenses:
Rental operations		19,264			18,119			6.3	%
Real estate taxes		9,074			8,549			6.1	%

Total expenses		28,338			26,668			6.3	%

Same property net operating income (2)	$	66,090		$	64,095			3.1	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(4,737	)		(6,290	)		(24.7	%)

Same property net operating income — cash basis (2) (3)	$	61,353		$	57,805			6.1	%


Rental revenue — cash basis (3)	$	64,548		$	62,141			3.9	%


(1)		The same property portfolio includes properties 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 33. For a quantitative reconciliation of net operating income to net income in accordance with GAAP, see page 14.

(3)		Represents rents on a “cash-on-cash” basis. Excluding properties which had lease terminations in 2009, quarterly same property NOI — cash basis increased 6.1%, and rental revenue — cash basis increased 4.8%, year-over-year.

ACQUISITIONS
SEPTEMBER 30, 2010

Acquisitions since August 11, 2004:


			Rentable
	Number of		Square
	Properties		Feet (1)		Investment
					(In thousands)
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		—		—		—
2010
First Quarter 2010		2		82,405	$	26,008
Second Quarter 2010		2		275,393		67,200
Third Quarter 2010		5		335,005		138,499

2010 acquisitions		9		692,803	$	231,707


Total acquisitions since August 11, 2004		80		9,665,960	$	3,447,700

Acquisitions detail for 2010:


			Rentable				Percent
			Square				Leased at
Property	Market	Closing Date	Feet (1)		Investment		Acquisition
			(In thousands)
First Quarter 2010
55 / 65 West Watkins Mill Road	Maryland	February 23, 2010		82,405	$	14,385		100.0	%
Gazelle Court (3)	San Diego	March 30, 2010		—		11,623		100.0	%

First quarter total				82,405	$	26,008		100.0	%


Second Quarter 2010
Medical Center Drive	Maryland	May 3, 2010		217,983	$	53,000		100.0	%
50 West Watkins Mill Road	Maryland	May 7, 2010		57,410		14,200		100.0	%

Second quarter total				275,393	$	67,200		100.0	%


Third Quarter 2010
4775 / 4785 Executive Drive	San Diego	July 15, 2010		62,896	$	27,280		—
Paramount Parkway	University Related - Other	July 20, 2010		61,603		17,549		100.0	%
11388 Sorrento Valley Road	San Diego	September 10, 2010		35,940		12,420		100.0	%
4570 Executive Drive	San Diego	September 17, 2010		125,219		63,500		100.0	%
10240 Science Center Drive	San Diego	September 23, 2010		49,347		17,750		100.0	%

Third quarter total				335,005	$	138,499		81.2	%

Total 2010 acquisitions				692,803	$	231,707		90.9	%


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

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

(3)		The total estimated cost for this property is $77.5 million upon the completion of construction of an approximately 176,000 square foot building.

LEASING ACTIVITY (1)
SEPTEMBER 30, 2010


				Current
	Leased			Annualized
	Square			Base Rent per
	Feet			Leased Sq Ft
Leased Square Feet as of June 30, 2010		8,448,718
Acquisitions		272,109		$	33.81
Expirations		(200,027	)		38.23
Terminations		(148,263	)		11.58
Renewals, amendments, and extensions		141,310			15.93
New leases		83,125			19.79

Leased Square Feet as of September 30, 2010		8,596,972


Pre-leased Square Feet as of June 30, 2010		17,069
Pre-leased new leases		7,226			21.00

Pre-leased Square Feet as of September 30, 2010		24,295



Gross Leasing Activity — Third Quarter 2010		231,661		$	17.47


(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
SEPTEMBER 30, 2010


	Three Months Ended
	9/30/10		6/30/10		3/31/10		12/31/09		9/30/09
Renewals, Amendments, and Extensions (1)
Number of renewals		4		3		5		6		3
Square feet		141,310		33,468		70,526		262,714		43,456
Tenant improvement costs per square foot (2)	$	—	$	29.88	$	1.66	$	16.79	$	4.37
Leasing commission costs per square foot (2)		6.36		3.33		3.78		2.17		1.00

Total tenant improvement and leasing commission costs psf	$	6.36	$	33.21	$	5.44	$	18.96	$	5.37


New Leases (3)
Number of leases		10		9		8		11		8
Square feet		90,351		126,407		84,581		325,988		228,731
Tenant improvement costs per square foot (2)	$	43.06	$	64.22	$	44.09	$	99.77	$	2.47
Leasing commission costs per square foot (2)		6.76		8.82		8.91		10.62		1.73

Total tenant improvement and leasing commission costs psf	$	49.82	$	73.03	$	53.00	$	110.39	$	4.20


Total
Number of renewals/leases		14		12		13		17		11
Square feet		231,661		159,875		155,107		588,702		272,187
Tenant improvement costs per square foot (2)	$	16.79	$	57.03	$	24.80	$	62.74	$	2.77
Leasing commission costs per square foot (2)		6.52		7.67		6.57		6.85		1.61

Total tenant improvement and leasing commission costs psf	$	23.31	$	64.70	$	31.37	$	69.59	$	4.38


(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 the Company’s portfolio.

NON-GAAP FINANCIAL MEASURE DEFINITIONS
SEPTEMBER 30, 2010

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, (b) non-cash revenues and expenses, (c) recurring capital expenditures and tenant improvements, and (d) leasing commissions. 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) noncontrolling 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, noncontrolling 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
SEPTEMBER 30, 2010

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

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

BioMed Realty Trust, Inc.

Corporate Communications Contact

www.biomedrealty.com

17190 Bernardo Center Drive

(858) 485-9840 phone

San Diego, CA 92128

Director, Corporate Communications

(858) 485-9843 fax

richard.howe@biomedrealty.com