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

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8-K - FORM 8-K - BioMed Realty Trust Inc	a58574e8vk.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	a58574exv99w1.htm

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA
DECEMBER 31, 2010


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, 2010


	Page
Fourth 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.

FOURTH QUARTER HIGHLIGHTS
DECEMBER 31, 2010

•

Generated record total revenues for the fourth quarter of $105.0 million, up 19.1% from $88.2 million in the same period in 2009.

•

Increased rental revenues for the quarter by 17.6% to a record $79.2 million from $67.3 million in the same period in 2009.

•		Reported funds from operations (FFO) for the quarter of $43.6 million, or $0.30 per diluted share, as compared to FFO of $28.0 million, or $0.28 per share in the fourth quarter of 2009, an increase of 7.1%.

•		Increased adjusted funds from operations (AFFO) per diluted share by 16.7% to $0.28 as compared to $0.24 for the same period in 2009.

•		Increased same property net operating income (NOI) for the quarter by 6.0% and same property NOI on a cash basis for the quarter by 13.1% as compared to the same period in 2009.

•		Increased net income to $8.5 million, or $0.06 per diluted share, for the quarter, as compared to $477,000, or $0.00 per diluted share, for the same period in 2009.

•		Executed 13 leasing transactions representing approximately 329,000 square feet:

	•		Eight new leases totaling approximately 162,000 square feet.

	•		Five leases amended to extend their terms, totaling approximately 167,000 square feet.

	•		Current operating portfolio 88.6% leased on a weighted average basis.

•		Acquired two adjacent life science campuses in South San Francisco for $298.2 million. The properties are fully leased and comprise approximately 489,000 square feet of rentable space with development rights for an additional 946,000 square feet.

•		Acquired three properties in San Diego, California for a total investment of $64.2 million. The properties were 96.2% leased at acquisition and comprise approximately 243,000 rentable square feet.

•		Acquired two life science properties in North Carolina’s Research Triangle for a total investment of $14.7 million. The two properties are 89% leased and comprise approximately 79,000 rentable square feet.

•		Promoted Stephen A. Willey to Vice President, Chief Accounting Officer and Jonathan P. Klassen to Vice President, Assistant General Counsel and Secretary, and

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 85 properties, representing 147 buildings with approximately 12.2 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, 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	Senior Management
Alan D. Gold	Alan D. Gold	Anne L. Hoffman
Chairman	Chairman and Chief Executive Officer	Senior Vice President,
Barbara R. Cambon		Leasing & Development

	R. Kent Griffin, Jr.	Karen A. Sztraicher
Edward A. Dennis, Ph.D.	President and Chief Operating Officer	Senior Vice President,
		Asset Management

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

	Matthew G. McDevitt	Kevin M. Simonsen
Theodore D. Roth	Executive Vice President,	Vice President,
	Real Estate	Real Estate Counsel

M. Faye Wilson	Greg N. Lubushkin	Bruce D. Steel
	Chief Financial Officer	Managing Director,
		BioMed Ventures

	John P. Bonanno	Stephen A. Willey
	Senior Vice President,	Vice President,
	Leasing & Development	Chief Accounting Officer

EQUITY RESEARCH COVERAGE
DECEMBER 31, 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
DECEMBER 31, 2010

(In thousands, except per share and ratio amounts)


	Three months ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Selected Operating Data
Total revenues	$	105,036		$	95,733		$	92,912		$	92,756		$	88,171

EBITDA (1)		63,491			55,587			53,696			55,590			48,930
Adjusted EBITDA (1)		67,910			59,932			58,032			59,952			53,181

Net operating income — cash basis (2)		72,390			59,960			59,718			59,173			55,939

General and administrative expense		6,379			6,805			6,449			6,269			6,336
Acquisition related expenses		665			420			1,819			150			220

Interest expense		21,526			21,589			21,870			21,260			20,429
Capitalized interest		1,305			1,191			1,301			1,645			1,860
Interest incurred including swap payments (3)		22,854			22,791			23,411			23,193			22,634

Operating margin (4)		70.1	%		69.3	%		72.2	%		70.9	%		69.9	%
General and administrative expense / Total revenues		6.1	%		7.1	%		6.9	%		6.8	%		7.2	%

Net income available to common stockholders		8,521			4,832			4,199			4,299			477
Net income per share — diluted	$	0.06		$	0.04		$	0.04		$	0.04		$	0.00

FFO — diluted (5)		43,581			35,220			33,137			35,487			27,999
FFO per share — diluted (5)	$	0.30		$	0.28		$	0.27		$	0.32		$	0.28

AFFO (5)		39,697			29,698			29,287			30,791			24,245
AFFO per share — diluted (5)	$	0.28		$	0.23		$	0.24		$	0.27		$	0.24

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

FFO payout ratio (6)		56.7	%		60.7	%		55.6	%		43.8	%		50.0	%
AFFO payout ratio (6)		60.7	%		73.9	%		62.5	%		51.9	%		58.3	%


(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
DECEMBER 31, 2010

(In thousands, except per share and ratio amounts)


		12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Capitalization:
Total common shares outstanding			131,047			130,831			113,578			100,312			99,000
Total units outstanding (1)			3,001			3,001			3,001			3,038			3,077

Total common shares and units outstanding			134,048			133,832			116,579			103,350			102,077
Common share price at quarter end		$	18.65		$	17.92		$	16.09		$	16.54		$	15.78

Equity value at quarter end		$	2,499,990		$	2,398,274		$	1,875,763		$	1,709,412		$	1,610,773
Preferred stock at liquidation value			230,000			230,000			230,000			230,000			230,000
Consolidated debt			1,494,567			1,120,820			1,281,237			1,425,136			1,356,300

Total capitalization		$	4,224,557		$	3,749,094		$	3,387,000		$	3,364,548		$	3,197,073


Debt / Total assets			37.7	%		31.4	%		37.4	%		42.4	%		41.3	%
Debt / Total capitalization			35.4	%		29.9	%		37.8	%		42.3	%		42.3	%

Coverage Ratios (2):
Debt / Adjusted EBITDA			5.5			4.7			5.5			6.0			6.4
Interest coverage			3.5			3.1			2.9			3.1			2.9
Fixed charge coverage			2.7			2.3			2.2			2.4			2.2

Total consolidated debt:
Secured debt / Total assets			16.6	%		18.5	%		19.4	%		24.3	%		28.0	%
Floating rate debt / Total debt			26.3	%		1.3	%		13.3	%		38.2	%		47.8	%
Adjusted floating rate debt / Total debt			16.2	%		0.0	%		1.6	%		10.1	%		18.3	%
Unencumbered real estate / Total real estate			66.7	%		63.0	%		61.3	%		60.3	%		59.5	%
Unencumbered CABR / Total CABR (3)			68.7	%		64.8	%		64.8	%		63.8	%		62.3	%

	Covenant
Bond covenants (4):	Requirements
Total Outstanding Debt / Total Assets	Must be £ 60%		36.1	%		29.7	%		35.4	%		—			—
Secured Debt / Total Assets	Must be £ 40%		15.8	%		17.4	%		18.2	%		—			—
Consolidated Income Available for Debt Service / Annual Debt Service Charge	Must be ³ 1.5X		3.1			2.6			2.5			—			—
Unencumbered Assets / Unsecured Debt	Must be ³ 150%		339	%		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
DECEMBER 31, 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)	$	2,654,438		97.3	%		53		6,518,536		98.6	%		4		72,863		100.0	%		57		6,591,399		98.6	%
Lease up (3)		732,080		57.3	%		22		2,998,293		65.0	%		3		881,695		44.1	%		25		3,879,988		60.2	%

Current operating portfolio		3,386,517		88.6	%		75		9,516,829		88.0	%		7		954,558		48.3	%		82		10,471,387		84.4	%
Long-term lease up (4)		290,645		24.0	%		1		1,389,517		24.0	%		—		—		n/a			1		1,389,517		24.0	%

Total operating portfolio		3,677,162		83.5	%		76		10,906,346		79.9	%		7		954,558		48.3	%		83		11,860,904		77.3	%
Development (5)		41,990		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)		25,651		—			1		152,145		—			—		—		n/a			1		152,145		—

Total property portfolio		3,744,803		83.1	%		78		11,234,491		79.1	%		7		954,558		48.3	%		85		12,189,049		76.7	%

Development potential (5)		133,288							2,626,000														2,626,000

Total portfolio	$	3,878,091							13,860,491														14,815,049


(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 unconsolidated partnership portfolio, and page 34 for definitions of terms.

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2010
(In thousands)


	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Assets
Investments in real estate, net	$	3,536,114		$	3,207,957		$	3,075,150		$	3,015,632		$	2,971,767
Investments in unconsolidated partnerships		57,265			58,565			59,459			55,968			56,909
Cash and cash equivalents		21,467			20,687			21,339			36,800			19,922
Restricted cash		9,971			12,384			11,547			15,304			15,355
Accounts receivable, net		5,874			7,333			2,859			2,501			4,135
Accrued straight-line rents, net		106,905			102,567			96,298			88,981			82,066
Acquired above-market leases, net		30,566			3,796			2,436			2,741			3,047
Deferred leasing costs, net		125,060			88,828			80,373			81,539			83,274
Deferred loan costs, net		11,499			12,394			12,825			12,124			8,123
Other assets		55,033			58,042			65,935			48,605			38,676

Total assets	$	3,959,754		$	3,572,553		$	3,428,221		$	3,360,195		$	3,283,274

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	657,922		$	662,522		$	664,867		$	667,175		$	669,454
Secured term loan		—			—			—			150,000			250,000
Exchangeable senior notes due 2026, net		19,522			19,432			21,396			38,804			44,685
Exchangeable senior notes due 2030		180,000			180,000			180,000			180,000			—
Unsecured senior notes due 2020, net		247,571			247,523			247,475			—			—
Unsecured line of credit		392,450			14,050			170,500			394,564			397,666
Security deposits		11,749			10,883			10,352			8,003			7,929
Dividends and distributions payable		27,029			26,992			21,728			18,710			18,531
Accounts payable, accrued expenses and other liabilities		98,826			75,319			50,720			49,532			47,388
Derivative instruments		3,826			5,453			6,631			9,568			12,551
Acquired below-market leases, net		7,963			8,031			9,039			10,062			11,138

Total liabilities		1,646,858			1,250,205			1,382,708			1,526,418			1,459,342
Equity:
Stockholders’ equity:
Preferred stock		222,413			222,413			222,413			222,413			222,413
Common stock		1,310			1,308			1,136			1,003			990
Additional paid-in capital		2,371,488			2,369,952			2,079,153			1,858,212			1,843,551
Accumulated other comprehensive loss		(70,857	)		(73,840	)		(77,049	)		(81,380	)		(85,183	)
Dividends in excess of earnings		(221,176	)		(207,419	)		(190,010	)		(177,173	)		(167,429	)

Total stockholders’ equity		2,303,178			2,312,414			2,035,643			1,823,075			1,814,342
Noncontrolling interests		9,718			9,934			9,870			10,702			9,590

Total equity		2,312,896			2,322,348			2,045,513			1,833,777			1,823,932

Total liabilities and equity	$	3,959,754		$	3,572,553		$	3,428,221		$	3,360,195		$	3,283,274

CONSOLIDATED STATEMENTS OF INCOME
DECEMBER 31, 2010
(In thousands, except share and per share data)


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Revenues:
Rental	$	79,157		$	72,971		$	72,380		$	70,600		$	67,294
Tenant recoveries		23,580			22,723			20,273			20,826			19,895
Other income		2,299			39			259			1,330			982

Total revenues		105,036			95,733			92,912			92,756			88,171

Expenses:
Rental operations		20,935			19,998			17,077			17,851			17,675
Real estate taxes		9,745			9,408			8,703			8,722			8,532
Depreciation and amortization		32,196			27,774			26,469			28,915			26,853
General and administrative		6,379			6,805			6,449			6,269			6,336
Acquisition related expenses		665			420			1,819			150			220

Total expenses		69,920			64,405			60,517			61,907			59,616

Income from operations		35,116			31,328			32,395			30,849			28,555
Equity in net loss of unconsolidated partnerships		(958	)		(308	)		(100	)		(277	)		(506	)
Interest income		46			55			51			20			82
Interest expense		(21,526	)		(21,589	)		(21,870	)		(21,260	)		(20,429	)
Gain/(loss) on derivative instruments		181			(287	)		(497	)		150			(86	)
Gain/(loss) on extinguishment of debt		81			(22	)		(1,444	)		(821	)		(2,888	)

Net income		12,940			9,177			8,535			8,661			4,728
Net income attributable to noncontrolling interests		(178	)		(104	)		(95	)		(121	)		(10	)

Net income attributable to Company		12,762			9,073			8,440			8,540			4,718
Preferred stock dividends		(4,241	)		(4,241	)		(4,241	)		(4,241	)		(4,241	)

Net income available to common stockholders	$	8,521		$	4,832		$	4,199		$	4,299		$	477


Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.06		$	0.04		$	0.04		$	0.04		$	0.00


Weighted-average common shares outstanding:
Basic		129,599,798			112,910,694			109,707,274			98,229,996			97,706,262

Diluted		132,601,048			115,911,944			113,956,077			102,577,329			101,666,673

FFO (1)
DECEMBER 31, 2010
(In thousands, except per share and ratio amounts)


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net income available to common stockholders	$	8,521		$	4,832		$	4,199		$	4,299		$	477
Adjustments:
Noncontrolling interests in operating partnership		188			122			109			127			30
Depreciation & amortization — unconsolidated partnerships		1,014			835			694			662			662
Depreciation & amortization — consolidated entities		32,196			27,774			26,469			28,915			26,853
Depreciation & amortization — allocable to noncontrolling interests of consolidated joint ventures		(26	)		(24	)		(22	)		(22	)		(23	)

FFO	$	41,893		$	33,539		$	31,449		$	33,981		$	27,999


FFO per share	$	0.31		$	0.29		$	0.28		$	0.33		$	0.28


FFO	$	41,893		$	33,539		$	31,449		$	33,981		$	27,999
Interest expense — exchangeable senior notes due 2030 (2)		1,688			1,681			1,688			1,506			—

FFO — diluted	$	43,581		$	35,220		$	33,137		$	35,487		$	27,999

FFO per share diluted (2)	$	0.30		$	0.28		$	0.27		$	0.32		$	0.28

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

FFO payout ratio		56.7	%		60.7	%		55.6	%		43.8	%		50.0	%


Weighted-average common shares outstanding diluted (3)		133,905,635			117,139,883			113,956,077			102,577,329			101,666,673
Dilutive effect of exchangeable notes due 2030 (2)		9,914,076			9,914,076			9,914,076			9,914,076			—

Weighted-average common shares outstanding diluted — FFO		143,819,711			127,053,959			123,870,153			112,491,405			101,666,673


(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 senior 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 senior 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 December 31, 2010 and September 30, 2010 include 1,304,587 and 1,227,939 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

AFFO (1)
DECEMBER 31, 2010
(In thousands, except per share and ratio amounts)


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO — diluted	$	43,581		$	35,220		$	33,137		$	35,487		$	27,999
Adjustments:
Recurring capital expenditures and tenant improvements (2)		(2,867	)		(3,208	)		(1,817	)		(2,834	)		(978	)
Leasing commissions		(1,799	)		(1,507	)		(1,494	)		(424	)		(3,471	)
(Gain)/loss on extinguishment of debt		(81	)		22			1,444			821			2,888
(Gain)/loss on derivative instruments		(181	)		287			497			(150	)		86
Amortization of deferred interest costs		1,771			1,776			1,781			1,786			1,791
Amortization of deferred loan costs		1,080			1,039			1,040			1,143			784
Amortization of fair-value of debt acquired		(522	)		(476	)		(474	)		(467	)		(467	)
Amortization of debt discount		137			179			208			177			427
Amortization of lease incentive		587			587			535			500			328
Depreciation included in general and administrative expense		376			363			359			347			396
Non-cash equity compensation		1,673			1,802			1,725			1,789			1,462
Straight line rents		(5,629	)		(6,113	)		(7,151	)		(6,733	)		(6,358	)
Share of unconsolidated partnership adjustments (3)		146			423			433			243			244
Fair-value lease revenue		1,425			(696	)		(936	)		(894	)		(886	)

AFFO	$	39,697		$	29,698		$	29,287		$	30,791		$	24,245

AFFO per share — diluted	$	0.28		$	0.23		$	0.24		$	0.27		$	0.24

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

AFFO payout ratio		60.7	%		73.9	%		62.5	%		51.9	%		58.3	%


(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)
DECEMBER 31, 2010
(In thousands)


	Three Months Ended
	12/31/10		9/30/10		6/30/10		3/31/10		12/31/09
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	8,521	$	4,832	$	4,199	$	4,299	$	477
Interest expense		21,526		21,589		21,870		21,260		20,429
Interest expense — unconsolidated partnerships		234		557		464		454		509
Depreciation & amortization — consolidated entities		32,196		27,774		26,469		28,915		26,853
Depreciation & amortization — unconsolidated partnerships		1,014		835		694		662		662

EBITDA		63,491		55,587		53,696		55,590		48,930
Noncontrolling interests		178		104		95		121		10
Preferred dividends		4,241		4,241		4,241		4,241		4,241

Adjusted EBITDA	$	67,910	$	59,932	$	58,032	$	59,952	$	53,181


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

RECONCILIATION OF NET OPERATING INCOME (1)
DECEMBER 31, 2010
(Dollars in thousands)


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Net income	$	12,940		$	9,177		$	8,535		$	8,661		$	4,728
Equity in net loss of unconsolidated partnerships		958			308			100			277			506
Interest expense		21,526			21,589			21,870			21,260			20,429
Interest income		(46	)		(55	)		(51	)		(20	)		(82	)
(Gain)/loss on derivative instruments		(181	)		287			497			(150	)		86
(Gain)/loss on extinguishment of debt		(81	)		22			1,444			821			2,888

Income from operations		35,116			31,328			32,395			30,849			28,555
Depreciation and amortization		32,196			27,774			26,469			28,915			26,853
General and administrative		6,379			6,805			6,449			6,269			6,336
Acquisition related expenses		665			420			1,819			150			220

Consolidated net operating income	$	74,356		$	66,327		$	67,132		$	66,183		$	61,964


Revenues:
Rental	$	79,157		$	72,971		$	72,380		$	70,600		$	67,294
Tenant recoveries		23,580			22,723			20,273			20,826			19,895
Other income		2,299			39			259			1,330			982

Total revenues		105,036			95,733			92,912			92,756			88,171

Expenses:
Rental operations		20,935			19,998			17,077			17,851			17,675
Real estate taxes		9,745			9,408			8,703			8,722			8,532

Total operating expenses		30,680			29,406			25,780			26,573			26,207

Consolidated net operating income	$	74,356		$	66,327		$	67,132		$	66,183		$	61,964

Consolidated net operating income — cash basis (2)	$	72,390		$	59,960		$	59,718		$	59,173		$	55,939


Operating margin (3)		70.1	%		69.3	%		72.2	%		70.9	%		69.9	%
Operating expense recovery (4)		76.9	%		77.3	%		78.6	%		78.4	%		75.9	%


(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
DECEMBER 31, 2010
(Dollars in thousands)


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Mortgage notes payable	$	11,829		$	11,838		$	11,845		$	11,858		$	11,953
Secured term loan		—			—			222			1,170			1,209
Exchangeable senior notes due 2026		223			234			444			457			1,055
Exchangeable senior notes due 2030		1,688			1,681			1,688			1,506			—
Unsecured senior notes due 2020		3,827			3,829			2,637			—			—
Unsecured line of credit		1,101			1,004			933			1,152			1,335
Derivative instruments		1,697			1,676			2,847			4,123			4,202

Interest expense — cash basis	$	20,365		$	20,262		$	20,616		$	20,266		$	19,754


Non cash interest expense
Amortization of fair-value of debt acquired		(522	)		(476	)		(474	)		(467	)		(467	)
Amortization of debt discount on exchangeable senior notes due 2026		89			132			175			177			427
Amortization of debt discount on unsecured senior notes due 2020		48			47			33			—			—
Amortization of deferred loan costs		1,080			1,039			1,040			1,143			784
Amortization of deferred interest costs		1,771			1,776			1,781			1,786			1,791
Capitalized interest		(1,305	)		(1,191	)		(1,301	)		(1,645	)		(1,860	)

Interest expense	$	21,526		$	21,589		$	21,870		$	21,260		$	20,429

COVERAGE RATIOS (1)
DECEMBER 31, 2010

(In thousands,except ratios)


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Interest coverage ratio
Adjusted EBITDA	$	67,910		$	59,932		$	58,032		$	59,952		$	53,181
Interest expense:
Interest expense		21,526			21,589			21,870			21,260			20,429
Interest expense — unconsolidated partnerships		234			557			464			454			509
Amortization of deferred interest costs		(1,771	)		(1,776	)		(1,781	)		(1,786	)		(1,791	)
Amortization of deferred loan costs		(1,080	)		(1,039	)		(1,040	)		(1,143	)		(784	)
Amortization of debt discount		(137	)		(179	)		(208	)		(177	)		(427	)
Amortization of fair-value of debt acquired		522			476			474			467			467

Total interest expense	$	19,294		$	19,628		$	19,779		$	19,075		$	18,403


Interest coverage ratio		3.5			3.1			2.9			3.1			2.9


Fixed charge coverage ratio
Adjusted EBITDA	$	67,910		$	59,932		$	58,032		$	59,952		$	53,181
Fixed charges:
Interest expense		21,526			21,589			21,870			21,260			20,429
Interest expense — unconsolidated partnerships		234			557			464			454			509
Amortization of deferred interest costs		(1,771	)		(1,776	)		(1,781	)		(1,786	)		(1,791	)
Amortization of deferred loan costs		(1,080	)		(1,039	)		(1,040	)		(1,143	)		(784	)
Amortization of debt discount		(137	)		(179	)		(208	)		(177	)		(427	)
Amortization of fair-value of debt acquired		522			476			474			467			467
Principal payments		1,912			1,868			1,834			1,812			1,773
Principal payments — unconsolidated partnerships		—			—			—			—			8
Preferred dividends		4,241			4,241			4,241			4,241			4,241

Total fixed charges	$	25,447		$	25,737		$	25,854		$	25,128		$	24,425


Fixed charge coverage ratio		2.7			2.3			2.2			2.4			2.2


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

DEBT SUMMARY
DECEMBER 31, 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	%	$	4,237	$	138		$	4,375		07/12
Center for Life Science \| Boston		7.75	%		7.75	%		345,577		—			345,577		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		64,230		3,284			67,514		12/18
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,488		199			6,687		09/12
Road to the Cure		6.70	%		5.78	%		14,696		380			15,076		01/14
Science Center Drive		7.65	%		5.04	%		10,800		164			10,964		07/11
Shady Grove Road		5.97	%		5.97	%		147,000		—			147,000		09/16
Sidney Street		7.23	%		5.11	%		27,395		816			28,211		06/12
Sorrento West		7.42	%		2.72	%		13,247		558			13,805		11/11
9865 Towne Centre Drive		7.95	%		7.95	%		17,636		—			17,636		06/13
900 Uniqema Boulevard		8.61	%		5.61	%		1,011		66			1,077		05/15

Total / weighted average on fixed rate mortgages		7.16	%		6.78	%		652,317		5,605			657,922

Fixed rate debt:
Unsecured exchangeable senior notes due 2026		4.50	%		6.45	%		19,800		(278	)		19,522		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		(2,429	)		247,571		04/20

Total / weighted average fixed rate debt		6.32	%		6.16	%		1,102,117		2,898			1,105,015

Variable rate debt:
$720 million unsecured line of credit		1.35	%		1.35	%		392,450		—			392,450		08/11

Total / weighted average variable rate debt		1.35	%		1.35	%		392,450		—			392,450


Total / weighted average consolidated debt		5.01	%		4.90	%	$	1,494,567	$	2,898		$	1,497,465


Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)		3.76	%		3.76	%	$	40,650	$	—		$	40,650		02/12
PREI secured construction loan (20%) (variable)		1.77	%		1.77	%		40,481		—			40,481		08/11

Total / weighted average share of unconsolidated partnership debt		2.77	%		2.77	%		81,131		—			81,131


Total / weighted average consolidated and share of unconsolidated partnership debt		4.90	%		4.79	%	$	1,575,698	$	2,898		$	1,578,596


(1)		Subsequent to quarter end the Road to the Cure note was voluntarily prepaid in full prior to its scheduled maturity.

DEBT ANALYSIS
DECEMBER 31, 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	$	652,317		43.6	%		7.16	%		6.78	%

Unsecured debt		842,250		56.4	%		3.35	%		4.22	%


Total consolidated debt	$	1,494,567		100.0	%		5.01	%		5.34	%

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	$	1,102,117		73.7	%		6.32	%		6.16	%

Variable rate debt — hedged		150,000		10.0	%		1.35	%		5.70	%

Variable rate debt — unhedged		242,450		16.2	%		1.35	%		1.35	%


Total consolidated debt	$	1,494,567		100.0	%		5.01	%		5.34	%

DEBT MATURITIES
DECEMBER 31, 2010

(In thousands)

Weighted average debt maturity is 6 years for consolidated debt.


	2011		2012		2013		2014		2015		Thereafter		Total
Consolidated debt:

Fixed rate debt:
Fixed rate mortgages	$	31,842	$	45,177	$	25,688	$	352,822	$	6,253	$	190,535	$	652,317
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		31,842		45,177		25,688		352,822		6,253		640,335		1,102,117

Variable rate debt:
$720 million unsecured line of credit (3)		392,450		—		—		—		—		—		392,450

Total variable rate debt		392,450		—		—		—		—		—		392,450


Total consolidated debt	$	424,292	$	45,177	$	25,688	$	352,822	$	6,253	$	640,335	$	1,494,567

Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable) (4)	$	—	$	40,650	$	—	$	—	$	—	$	—	$	40,650
PREI secured construction loan (20%) (variable) (5)		40,481		—		—		—		—		—		40,481

Share of total unconsolidated partnership debt	$	40,481	$	40,650	$	—	$	—	$	—	$	—	$	81,131


Total consolidated and share of unconsolidated partnership debt	$	464,773	$	85,827	$	25,688	$	352,822	$	6,253	$	640,335	$	1,575,698


(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)		Subsequent to quarter end the maturity date was extended to February 2012.

(5)		Subsequent to quarter end the maturity date was extended to August 2011.

COMMON AND PREFERRED STOCK DATA
DECEMBER 31, 2010

(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	12/31/10			9/30/10			6/30/10			3/31/10			12/31/09
Earnings per share
Weighted average common shares outstanding		129,600			112,911			109,707			98,229			97,707
Weighted average OP and LTIP units outstanding		3,001			3,001			3,019			3,058			3,081
Dilutive effect of restricted stock		—			—			1,230			1,290			879

Diluted common shares — EPS		132,601			115,912			113,956			102,577			101,667


Funds from operations
Weighted average common shares outstanding		129,600			112,911			109,707			98,229			97,707
Weighted average OP and LTIP units outstanding		3,001			3,001			3,019			3,058			3,081
Dilutive effect of restricted stock		1,305			1,228			1,230			1,290			879
Dilutive effect of exchangeable senior notes due 2030		9,914			9,914			9,914			9,914			—

Diluted common shares — FFO		143,820			127,054			123,870			112,491			101,667


Closing common shares, OP and LTIP units outstanding		134,048			133,832			116,579			103,350			102,077
Preferred shares outstanding		9,200			9,200			9,200			9,200			9,200

High price	$	19.50		$	19.25		$	19.50		$	17.88		$	16.59
Low price	$	16.64		$	14.79		$	15.04		$	13.36		$	12.62
Average closing price	$	18.21		$	17.52		$	17.39		$	15.70		$	14.16
Closing price	$	18.65		$	17.92		$	16.09		$	16.54		$	15.78
Dividends per share — annualized	$	0.68		$	0.68		$	0.60		$	0.56		$	0.56
Closing dividend yield — annualized		3.6	%		3.8	%		3.7	%		3.4	%		3.5	%

DIVIDENDS PER SHARE

12/31/10

9/30/10

6/30/10

3/31/10

12/31/09

Common Stock — BMR

Amount

0.17

0.15

0.14

Declared

December 15, 2010

September 15, 2010

June 15, 2010

March 15, 2010

December 15, 2009

Record

December 31, 2010

September 30, 2010

June 30, 2010

March 31, 2010

December 31, 2009

Paid

January 17, 2011

October 15, 2010

July 15, 2010

April 15, 2010

January 15, 2010

Preferred Stock — BMR PrA

Amount

0.46094

Declared

December 15, 2010

September 15, 2010

June 15, 2010

March 15, 2010

December 15, 2009

Record

December 31, 2010

September 30, 2010

June 30, 2010

March 31, 2010

December 31, 2009

Paid

January 17, 2011

October 15, 2010

July 15, 2010

April 15, 2010

January 15, 2010

MARKET SUMMARY
DECEMBER 31, 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		2,201,857	$	118,915		33.6	%	$	54.01	$	128,303		30.4	%	$	58.27
San Francisco		1,596,534		56,166		15.8	%		35.18		70,260		16.6	%		44.01
San Diego		1,713,821		54,925		15.5	%		32.05		69,793		16.5	%		40.72
Maryland		1,502,766		54,402		15.4	%		36.20		70,858		16.8	%		47.15
New York / New Jersey		1,060,042		35,512		10.0	%		33.50		44,387		10.5	%		41.87
Pennsylvania		710,005		15,707		4.4	%		22.12		17,213		4.1	%		24.24
Seattle		180,136		7,711		2.2	%		42.81		9,160		2.2	%		50.85
University Related — Other		381,390		11,068		3.1	%		29.02		12,128		2.9	%		31.80

Total portfolio / weighted average		9,346,551	$	354,406		100.0	%	$	37.92	$	422,102		100.0	%	$	45.16


(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
DECEMBER 31, 2010


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/10			9/30/10
	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		6.8	%		641,438		91.1	%		91.1	%
3	Charles Street	April 7, 2006	Stabilized		1		47,912		0.4	%		47,912		100.0	%		100.0	%
4	Coolidge Avenue	April 5, 2005	Lease Up		1		37,400		0.3	%		12,972		34.7	%		34.7	%
5	21 Erie Street	May 31, 2005	Stabilized		1		48,627		0.4	%		48,627		100.0	%		100.0	%
6	40 Erie Street	May 31, 2005	Stabilized		1		100,854		0.9	%		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		0.8	%		51,546		56.8	%		73.5	%
9	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		2.7	%		298,871		98.7	%		98.7	%
10	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		3.1	%		344,097		98.5	%		98.5	%
11	Sidney Street	May 31, 2005	Stabilized		1		191,904		1.7	%		191,904		100.0	%		100.0	%
12	Vassar Street	May 31, 2005	Lease Up		1		52,520		0.5	%		—		—			—

	Total Boston				18		2,001,325		18.3	%		1,813,224		90.6	%		91.4	%


	San Francisco
13	Ardentech Court	November 18, 2004	Stabilized		1		55,588		0.5	%		55,588		100.0	%		100.0	%
14	Ardenwood Venture (2)	June 14, 2006	Lease Up		1		72,500		0.6	%		27,620		38.1	%		38.1	%
15	Bayshore Boulevard	August 17, 2004	Stabilized		3		183,344		1.6	%		183,344		100.0	%		100.0	%
16	Bridgeview Technology Park I	September 10, 2004	Lease Up		2		201,567		1.8	%		125,144		62.1	%		62.1	%
17	Bridgeview Technology Park II	March 16, 2005	Lease Up		1		50,400		0.4	%		25,200		50.0	%		50.0	%
18	Dumbarton Circle	May 27, 2005	Stabilized		3		44,000		0.4	%		44,000		100.0	%		100.0	%
19	Eccles Avenue	December 1, 2005	Pre-development		1		152,145		1.4	%		—		—			—
20	Forbes Boulevard	September 5, 2007	Lease Up		1		237,984		2.1	%		118,992		50.0	%		100.0	%
21	Industrial Road	August 17, 2004	Lease Up		1		171,965		1.5	%		144,105		83.8	%		83.8	%
22	Gateway Business Park	October 26, 2010	Stabilized		7		284,013		2.5	%		284,013		100.0	%		n/a
23	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.8	%		50,000		56.8	%		56.8	%
24	Pacific Research Center	July 11, 2006	Lease Up		10		1,389,517		12.4	%		333,641		24.0	%		16.2	%
25	Science Center at Oyster Point	October 26, 2010	Stabilized		2		204,887		1.8	%		204,887		100.0	%		n/a

	Total San Francisco				34		3,135,863		27.8	%		1,596,534		50.9	%		42.3	%


	San Diego
26	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
27	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.5	%		61,286		100.0	%		100.0	%
28	4570 Executive Drive	September 17, 2010	Stabilized		1		125,219		1.1	%		125,219		100.0	%		100.0	%
29	4775 / 4785 Executive Drive	July 15, 2010	Lease Up		1		62,896		0.6	%		—		—			—
30	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.3	%		28,704		100.0	%		100.0	%
31	Gazelle Court	March 30, 2010	Development		1		176,000		1.6	%		176,000		100.0	%		100.0	%
32	3525 John Hopkins Court	December 28, 2010	Stabilized		1		48,306		0.4	%		48,306		100.0	%		n/a
33	3545-3575 John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.6	%		21,470		29.7	%		29.7	%
34	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		1.7	%		196,557		100.0	%		100.0	%
35	6828 Nancy Ridge Drive	April 21, 2005	Stabilized		1		42,138		0.4	%		42,138		100.0	%		58.0	%
36	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.6	%		66,745		100.0	%		100.0	%
37	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.6	%		54,104		79.6	%		79.6	%
38	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		0.9	%		79,791		75.7	%		76.1	%
39	10240 Science Center Drive	September 23, 2010	Stabilized		1		49,347		0.4	%		49,347		100.0	%		100.0	%
40	10255 Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.5	%		53,740		100.0	%		100.0	%
41	Sorrento Valley Boulevard	December 7, 2006	Stabilized		1		54,924		0.5	%		54,924		100.0	%		100.0	%
42	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.3	%		35,940		100.0	%		100.0	%
43	Sorrento Plaza	December 18, 2010	Stabilized		2		31,184		0.3	%		31,184		100.0	%		n/a
44	Sorrento West	October 15, 2010	Stabilized		8		163,799		1.5	%		149,164		91.1	%		n/a

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
DECEMBER 31, 2010


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/10			9/30/10
	San Diego (Continued)
45	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.7	%		81,204		100.0	%		100.0	%
46	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.8	%		94,866		100.0	%		100.0	%
47	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.9	%		104,870		100.0	%		100.0	%
48	Waples Street	March 1, 2005	Stabilized		1		50,055		0.4	%		50,055		100.0	%		100.0	%

	Total San Diego				36		1,808,678		15.9	%		1,640,958		90.7	%		89.1	%


	Maryland
49	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.7	%		77,225		100.0	%		100.0	%
50	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.6	%		289,912		100.0	%		100.0	%
51	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.5	%		51,181		100.0	%		100.0	%
52	Medical Center Drive	May 3, 2010	Stabilized		5		217,983		1.9	%		217,983		100.0	%		100.0	%
53	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		5.7	%		635,058		100.0	%		100.0	%
54	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.8	%		91,592		100.0	%		100.0	%
55	50 West Watkins Mill Road	May 7, 2010	Stabilized		1		57,410		0.5	%		57,410		100.0	%		100.0	%
56	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.7	%		82,405		100.0	%		100.0	%

	Total Maryland				16		1,502,766		13.4	%		1,502,766		100.0	%		100.0	%


	New York / New Jersey
57	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.6	%		64,960		89.8	%		89.8	%
58	Landmark at Eastview	August 12, 2004	Lease Up		5		743,550		6.6	%		634,562		85.3	%		84.2	%
59	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		3.2	%		360,520		100.0	%		100.0	%
60	One Research Way	May 31, 2006	Lease Up		1		49,421		0.4	%		—		—			—

	Total New York / New Jersey				10		1,225,791		10.8	%		1,060,042		86.5	%		85.8	%


	Pennsylvania
61	Eisenhower Road	August 13, 2004	Lease Up		1		27,750		0.2	%		16,565		59.7	%		59.7	%
62	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.6	%		71,500		100.0	%		100.0	%
63	King of Prussia	August 11, 2004	Lease Up		5		427,109		3.8	%		374,387		87.7	%		87.7	%
64	Phoenixville Pike	May 5, 2005	Stabilized		1		104,400		0.9	%		99,878		95.7	%		95.7	%
65	Spring Mill Drive	July 20, 2006	Stabilized		1		76,561		0.7	%		76,561		100.0	%		100.0	%
66	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
67	1000 Uniqema Boulevard	September 30, 2005	Stabilized		1		59,821		0.5	%		59,821		100.0	%		100.0	%

	Total Pennsylvania				11		778,434		6.8	%		710,005		91.2	%		91.2	%


	Seattle
68	Elliott Avenue	August 24, 2004	Lease Up		1		154,341		1.4	%		—		—			—
69	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
70	530 Fairview Avenue	January 12, 2006	Lease Up		1		96,188		0.9	%		64,295		66.8	%		65.6	%
71	Monte Villa Parkway	August 17, 2004	Stabilized		1		51,000		0.5	%		51,000		100.0	%		100.0	%
72	217th Place	November 21, 2006	Lease Up		1		67,799		0.6	%		42,628		62.9	%		62.9	%

	Total Seattle				5		391,541		3.6	%		180,136		46.0	%		45.7	%


	University Related — Other
73	Lucent Drive	May 31, 2005	Stabilized		1		21,500		0.2	%		21,500		100.0	%		100.0	%
74	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.5	%		61,603		100.0	%		100.0	%
75	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.4	%		39,691		82.0	%		n/a
76	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.7	%		78,023		100.0	%		100.0	%
77	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.3	%		149,984		100.0	%		100.0	%
78	Weston Parkway	December 17, 2010	Stabilized		1		30,589		0.3	%		30,589		100.0	%		n/a

	Total University Related — Other				10		390,093		3.4	%		381,390		97.8	%		100.0	%


	Total / weighted average				140		11,234,491		100.0	%		8,885,055		79.1	%		77.7	%


(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
DECEMBER 31, 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	%		—	$	32,400	$	77,500		Q1 2012
REDEVELOPMENT:
N/A	N/A		—		—			—		—		—		—

Total / weighted average			176,000		100.0	%		—	$	32,400	$	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
San Francisco		1,454,000
San Diego		103,000
Maryland		529,000
New York / New Jersey		326,000
Pennsylvania		50,000
Seattle		114,000

Total		2,626,000


(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
DECEMBER 31, 2010
(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

12/31/10

9/30/10

Market

McKellar Court

McKellar Court

September 30, 2004

Stabilized

72,863

100.0

100.0%

San Diego

PREI

320 Bent Street

April 4, 2007

Lease Up

184,405

145,304

78.8

100.0%

Boston

301 Binney Street

April 4, 2007

Lease Up

417,290

243,329

58.3

58.3%

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	$	14,715		$	652,344		$	667,059
Total debt (3)		10,280			405,653			415,933
Current annualized base rent		1,845			23,532			25,377
BioMed’s net investment in unconsolidated partnerships	$	12,520		$	44,745		$	57,265
BioMed’s pro rata share of debt		—			81,131			81,131
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
DECEMBER 31, 2010

Weighted average remaining lease term is 8.3 years for the consolidated portfolio and 8.2 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		44,154		0.5	%	$	682		0.2	%	$	15.45	$	682		0.2	%	$	15.45
First quarter 2011		53,137		0.6	%		1,343		0.4	%		25.27		1,364		0.3	%		25.67
Second quarter 2011		172,982		1.9	%		3,327		0.9	%		19.23		3,327		0.8	%		19.23
Third quarter 2011		83,407		0.9	%		2,895		0.8	%		34.71		2,895		0.7	%		34.71
Fourth quarter 2011		38,961		0.4	%		691		0.2	%		17.74		691		0.2	%		17.74

2011		348,487		3.8	%		8,256		2.3	%		23.69		8,277		2.0	%		23.75
2012		629,170		6.7	%		22,830		6.4	%		36.29		23,453		5.6	%		37.28
2013		646,852		6.9	%		16,223		4.6	%		25.08		17,685		4.2	%		27.34
2014		797,021		8.5	%		22,368		6.3	%		28.06		24,299		5.8	%		30.49
2015		330,103		3.5	%		9,745		2.7	%		29.52		10,518		2.5	%		31.86
2016		1,167,445		12.5	%		45,407		12.8	%		38.89		52,922		12.5	%		45.33
2017		118,045		1.3	%		3,587		1.0	%		30.39		4,325		1.0	%		36.64
2018		1,117,326		12.0	%		50,537		14.3	%		45.23		56,683		13.4	%		50.73
2019		270,150		2.9	%		7,692		2.2	%		28.47		9,661		2.3	%		35.76
2020		537,250		5.7	%		19,297		5.4	%		35.92		18,785		4.5	%		34.97
Thereafter		3,340,548		35.7	%		147,782		41.8	%		44.24		194,812		46.0	%		58.32


Total / weighted average		9,346,551		100.0	%	$	354,406		100.0	%	$	37.92	$	422,102		100.0	%	$	45.16


(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
DECEMBER 31, 2010


	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		Maryland		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		5,808		—		38,346		—		—		—		44,154
2011		37,388		—		103,701		113,784		10,796		82,818		—		—		348,487
2012		21,705		313,153		203,176		—		55,546		13,377		22,213		—		629,170
2013		12,972		213,826		226,248		—		136,594		44,318		3,962		8,932		646,852
2014		28,019		55,098		101,084		121,414		—		396,776		42,541		52,089		797,021
2015		—		57,950		206,641		—		—		34,753		—		30,759		330,103
2016		618,161		186,061		—		—		10,555		31,166		31,892		289,610		1,167,445
2017		—		—		21,470		51,181		45,394		—		—		—		118,045
2018		807,347		121,590		145,761		—		—		—		42,628		—		1,117,326
2019		2,676		61,757		—		168,817		—		—		36,900		—		270,150
2020		111,144		50,000		72,863		122,600		180,643		—		—		—		537,250
Thereafter		562,445		537,099		627,069		924,970		582,168		106,797		—		—		3,340,548


Total		2,201,857		1,596,534		1,713,821		1,502,766		1,060,042		710,005		180,136		381,390		9,346,551

10 LARGEST TENANTS
DECEMBER 31, 2010

BioMed’s properties were leased to 160 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		9.9	%	$	42,756	$	46.22		12.1	%	June 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		7.3	%		31,167		45.48		8.8	%	Multiple
3	Elan Pharmaceuticals, Inc. (3)		419,628		4.5	%		26,121		62.25		7.4	%	Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		3.9	%		25,543		70.49		7.2	%	July 2023
5	Regeneron Pharmaceuticals, Inc. (4)		564,547		6.0	%		22,818		40.42		6.4	%	Multiple
6	Genzyme Corporation		343,000		3.7	%		15,464		45.08		4.4	%	August 2018
7	Merck & Co., Inc. (5)		214,946		2.3	%		10,003		46.54		2.8	%	Multiple
8	Children’s Hospital Corporation		150,215		1.6	%		9,151		60.92		2.6	%	May 2023
9	Ironwood Pharmaceuticals, Inc. (6)		163,646		1.8	%		8,787		53.70		2.5	%	February 2016
10	Centocor Ortho Biotech, Inc. (Johnson & Johnson)		374,387		4.0	%		8,490		22.68		2.4	%	April 2014


	Total / weighted average (7)		4,202,989		45.0	%	$	200,300	$	47.66		56.6	%


(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)		5,198 square feet expires January 2011, 138,963 square feet expires December 2012, 15,482 square feet expires January 2013, 55,098 square feet expires December 2014, 115,888 square feet expires April 2024, and 88,999 square feet expires February 2025.

(4)		16,725 square feet expires March 2011, 6,568 square feet expires August 2011, and 541,254 square feet expires July 2024.

(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 and 30,589 square feet leased at Weston Parkway. 39,053 square feet expires July 2012, 30,589 square feet expires January 2014 and 145,304 square feet expires September 2016.

(6)		The Company owns 20% of the limited liability company that owns 301 Binney, at which this tenant leases 163,646 square feet.

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

SAME PROPERTY ANALYSIS
DECEMBER 31, 2010
(Dollars in thousands)


	Quarter Ended
	12/31/10			12/31/09			Percent Change
Total Same Property Portfolio (1)
Number of properties		66			66
Rentable square feet		9,922,588			9,922,588
Percent of total portfolio		81.4	%		94.3	%
Percent leased		78.1	%		78.7	%

Revenues:
Rental	$	75,838		$	71,569			6.0	%
Tenant recoveries		25,904			23,276			11.3	%

Total revenues		101,742			94,845			7.3	%


Expenses:
Rental operations		21,795			19,140			13.9	%
Real estate taxes		9,973			9,709			2.7	%

Total expenses		31,768			28,849			10.1	%

Same property net operating income (2)	$	69,974		$	65,996			6.0	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(2,154	)		(6,041	)		(64.3	%)

Same property net operating income — cash basis (2) (3)	$	67,820		$	59,955			13.1	%


Rental revenue — cash basis (3)	$	71,870		$	63,846			12.6	%


(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.

ACQUISITIONS
DECEMBER 31, 2010


			Rentable
	Number of		Square
Acquisitions since August 11, 2004:	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 acquisitions		16		1,503,975		608,738

Total acquisitions since August 11, 2004		87		10,477,132	$	3,824,731


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	%

Fourth Quarter 2010
Sorrento West	San Diego	October 15, 2010		163,799	$	29,390		94.3	%
Sorrento Plaza	San Diego	October 18, 2010		31,184		9,875		100.0	%
Science Center at Oyster Point	San Francisco	October 26, 2010		204,887		133,250		100.0	%
Gateway Business Park	San Francisco	October 26, 2010		284,013		164,946		100.0	%
Patriot Drive	University Related - Other	December 17, 2010		48,394		8,570		82.0	%
Weston Parkway	University Related - Other	December 17, 2010		30,589		6,100		100.0	%
3525 John Hopkins Court	San Diego	December 28, 2010		48,306		24,900		100.0	%

Fourth quarter total				811,172	$	377,031		97.8	%

Total 2010 acquisitions				1,503,975	$	608,738		94.6	%


(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)
DECEMBER 31, 2010


				Current
	Leased			Annualized
	Square			Base Rent per
	Feet			Leased Sq Ft
Leased Square Feet as of September 30, 2010		8,596,972
Acquisitions		793,107		$	44.00
Expirations		(374,911	)		20.36
Pre-leased delivery		7,226			21.00
Renewals, amendments, and extensions		167,310			18.11
New leases		156,847			19.57

Leased Square Feet as of December 31, 2010		9,346,551


Pre-leased Square Feet as of September 30, 2010		24,295
Pre-leased new leases		5,029			10.80
Pre-leased delivery		(7,226	)		21.00

Pre-leased Square Feet as of December 31, 2010		22,098


Gross Leasing Activity — Fourth Quarter 2010		329,186		$	18.75


(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, 2010


	Three Months Ended
	12/31/10		9/30/10		6/30/10		3/31/10		12/31/09
Renewals, Amendments, and Extensions (1)
Number of renewals		5		4		3		5		6
Square feet		167,310		141,310		33,468		70,526		262,714
Tenant improvement costs per square foot (2)	$	3.07	$	—	$	29.88	$	1.66	$	16.79
Leasing commission costs per square foot (2)		5.06		6.36		3.33		3.78		2.17

Total tenant improvement and leasing commission costs psf	$	8.13	$	6.36	$	33.21	$	5.44	$	18.96


New Leases (3)
Number of leases		8		10		9		8		11
Square feet		161,876		90,351		126,407		84,581		325,988
Tenant improvement costs per square foot (2)	$	88.54	$	43.06	$	64.22	$	44.09	$	99.77
Leasing commission costs per square foot (2)		13.05		6.76		8.82		8.91		10.62

Total tenant improvement and leasing commission costs psf	$	101.59	$	49.82	$	73.03	$	53.00	$	110.39


Total
Number of renewals/leases		13		14		12		13		17
Square feet		329,186		231,661		159,875		155,107		588,702
Tenant improvement costs per square foot (2)	$	45.10	$	16.79	$	57.03	$	24.80	$	62.74
Leasing commission costs per square foot (2)		8.99		6.52		7.67		6.57		6.85

Total tenant improvement and leasing commission costs psf	$	54.09	$	23.31	$	64.70	$	31.37	$	69.59


(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
DECEMBER 31, 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
DECEMBER 31, 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

Development Potential, 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

Tentative Schedule for Quarterly Results

First Quarter 2011

May 4,2011

Second Quarter 2011

August 3, 2011

Third Quarter 2011

November 2, 2011

Fourth Quarter 2011

February 8, 2012