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

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8-K - FORM 8-K - BioMed Realty Trust Inc	a59429e8vk.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	a59429exv99w1.htm

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

MARCH 31, 2011


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
MARCH 31, 2011


	Page
First 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.

FIRST QUARTER HIGHLIGHTS
MARCH 31,2011

•

Generated record total revenues for the second consecutive quarter of $105.5 million, up 13.8% from $92.8 million in the same period in 2010. Increased rental revenues for the quarter by 13.6% to $80.2 million from $70.6 million in the same period in 2010, also the highest in the company’s history for the second consecutive quarter.

•

Increased same property net operating income on a cash basis for the quarter by 7.7% as compared to the same period in 2010.

•

Executed 27 leasing transactions representing approximately 463,000 square feet, the fourth consecutive quarter with an increase in total leasing volume.:

	•		Fifteen new leases totaling approximately 232,000 square feet.

	•		Twelve leases amended to extend their terms, totaling approximately 231,000 square feet.

•

Increased the current consolidated operating portfolio’s weighted average leased percentage by 170 basis points to 90.3% leased, including positive net absorption in the Boston, San Francisco, San Diego, New York and Seattle.

•

Completed a public offering of $400 million of unsecured 3.85% Senior Notes due 2016. The company used the proceeds of the offering to repay a portion of the balance outstanding on its unsecured line of credit, which resulted in a loss on derivative instruments related to the ineffectiveness of cash flow hedges of approximately $1.0 million, or $0.01 per diluted share.

•

Increased funds from operations (FFO) for the quarter to $42.1 million ($0.29 per diluted share), as compared to $35.5 million ($0.32 per diluted share) in the first quarter of 2010, an increase of 18.6%.

•

Increased adjusted funds from operations (AFFO) for the quarter to $40.2 million ($0.28 per diluted share), as compared to $30.8 million ($0.27 per diluted share) in the first quarter of 2010, an increase of 30.7%.

•

Increased net income available to stockholders for the quarter to $5.5 million ($0.04 per diluted share), as compared to $4.3 million ($0.04 per diluted share) for the same period in 2010.

•

Increased dividend to $0.20 per share, or an annualized rate of $0.80 per share, a 17.6% increase over the prior quarter and a 42.9% increase over the prior year.

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
MARCH 31, 2011


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

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


Board of Directors	Senior Management
Alan D. Gold	Alan D. Gold	Karen A. Sztraicher
Chairman	Chairman and Chief Executive Officer	Senior Vice President,
Barbara R. Cambon	R. Kent Griffin, Jr.	Asset Management
	President and Chief Operating Officer	Janice L. Kameir
Edward A. Dennis, Ph.D.	Gary A. Kreitzer	Vice President,
	Executive Vice President,	Human Resources
Richard I. Gilchrist	General Counsel and Director	Jonathan P. Klassen
	Matthew G. McDevitt	Vice President,
Gary A. Kreitzer	Executive Vice President,	Assistant General Counsel and Secretary
	Real Estate	Kevin M. Simonsen
Theodore D. Roth	Greg N. Lubushkin	Vice President,
	Chief Financial Officer	Real Estate Counsel
M. Faye Wilson	John P. Bonanno	Bruce D. Steel
	Senior Vice President,	Managing Director,
	Leasing & Development	BioMed Ventures
	Anne L. Hoffman	Stephen A. Willey
	Senior Vice President,	Vice President,
	Leasing & Development	Chief Accounting Officer

Tentative Schedule for Quarterly Results


Second Quarter 2011		August 3, 2011
Third Quarter 2011		November 2, 2011
Fourth Quarter 2011		February 8, 2012
First Quarter 2012		May 2, 2012

EQUITY RESEARCH COVERAGE
MARCH 31, 2011


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	(212) 713-4760	ross.nussbaum@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
MARCH 31, 2011
(In thousands, except per share and ratio amounts)


	Three months ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Selected Operating Data
Total revenues	$	105,545		$	105,036		$	95,733		$	92,912		$	92,756

EBITDA (1)		62,247			63,491			55,587			53,696			55,590
Adjusted EBITDA (1)		66,595			67,910			59,932			58,032			59,952

Net operating income — cash basis (2)		73,130			72,390			59,960			59,718			59,173

General and administrative expense		7,421			6,379			6,805			6,449			6,269
Acquisition related expenses		320			665			420			1,819			150

Interest expense		21,316			21,526			21,589			21,870			21,260
Capitalized interest		1,494			1,305			1,191			1,301			1,645
Interest incurred including swap payments (3)		22,862			22,854			22,791			23,411			23,193

Operating margin (4)		70.2	%		70.1	%		69.3	%		72.2	%		70.9	%
General and administrative expense / Total revenues		7.0	%		6.1	%		7.1	%		6.9	%		6.8	%

Net income available to common stockholders		5,530			8,521			4,832			4,199			4,299
Net income per share — diluted	$	0.04		$	0.06		$	0.04		$	0.04		$	0.04

FFO — diluted (5)		42,073			43,581			35,220			33,137			35,487
FFO per share — diluted (5)	$	0.29		$	0.30		$	0.28		$	0.27		$	0.32

AFFO (5)		40,237			39,697			29,698			29,287			30,791
AFFO per share — diluted (5)	$	0.28		$	0.28		$	0.23		$	0.24		$	0.27

Dividend per share — common stock	$	0.20		$	0.17		$	0.17		$	0.15		$	0.14

FFO payout ratio (6)		69.0	%		56.7	%		60.7	%		55.6	%		43.8	%
AFFO payout ratio (6)		71.4	%		60.7	%		73.9	%		62.5	%		51.9	%


(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
MARCH 31, 2011
(In thousands, except per share and ratio amounts)


		3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Capitalization:
Total common shares outstanding			131,240			131,047			130,831			113,578			100,312
Total units outstanding (1)			2,989			3,001			3,001			3,001			3,038

Total common shares and units outstanding			134,229			134,048			133,832			116,579			103,350
Common share price at quarter end		$	19.02		$	18.65		$	17.92		$	16.09		$	16.54

Equity value at quarter end		$	2,553,027		$	2,499,990		$	2,398,274		$	1,875,763		$	1,709,412
Preferred stock at liquidation value			230,000			230,000			230,000			230,000			230,000
Consolidated debt			1,525,825			1,494,567			1,120,820			1,281,237			1,425,136

Total capitalization		$	4,308,852		$	4,224,557		$	3,749,094		$	3,387,000		$	3,364,548


Debt / Total assets			38.5	%		37.7	%		31.4	%		37.4	%		42.4	%
Debt / Total capitalization			35.4	%		35.4	%		29.9	%		37.8	%		42.3	%

Coverage Ratios (2):
Debt / Adjusted EBITDA			5.7			5.5			4.7			5.5			6.0
Interest coverage			3.4			3.5			3.1			2.9			3.1
Fixed charge coverage			2.6			2.7			2.3			2.2			2.4

Total consolidated debt:
Secured debt / Total assets			15.9	%		16.6	%		18.5	%		19.4	%		24.3	%
Floating rate debt / Total debt			3.3	%		26.3	%		1.3	%		13.3	%		38.2	%
Adjusted floating rate debt / Total debt			0.0	%		16.2	%		0.0	%		1.6	%		10.1	%
Unencumbered real estate / Total real estate			68.1	%		66.7	%		63.0	%		61.3	%		60.3	%
Unencumbered CABR / Total CABR (3)			69.4	%		68.7	%		64.8	%		64.8	%		63.8	%
Unsecured line of credit capacity		$	661,200		$	319,750		$	698,150		$	537,806		$	321,542
Bond covenants (4):	Covenant Requirements

Total Outstanding Debt / Total Assets	Must be £ 60%		36.5	%		36.1	%		29.7	%		35.4	%		—
Secured Debt / Total Assets	Must be £ 40%		15.0	%		15.8	%		17.4	%		18.2	%		—
Consolidated Income Available for Debt Service / Annual Debt Service Charge	Must be ³ 1.5X		2.7			3.1			2.6			2.5			—
Unencumbered Assets / Unsecured Debt — Notes due 2020	Must be ³ 150%		327	%		339	%		536	%		373	%		—
Unencumbered Assets / Unsecured Debt — Notes due 2016	Must be ³ 150%		321	%		—			—			—			—


(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 and supplemental and base indentures that govern the terms of the Company’s unsecured senior notes due 2016, which are included as exhibits to the Company’s Forms 8-K filed with the SEC on April 30, 2010 and March 30, 2011, respectively. The covenants for the unsecured senior notes due 2020 and unsecured senior notes due 2016 are identical, except that the unencumbered total asset value definition for the unsecured senior notes due 2020 includes investments in unconsolidated partnerships accounted for under the equity method of accounting, whereas the unencumbered total asset value definition for the unsecured senior notes due 2016 excludes such investments in unconsolidated partnerships.

PORTFOLIO SUMMARY
MARCH 31, 2011


															Unconsolidated
	Consolidated Portfolio												Partnership Portfolio (1)							Total Portfolio
			Weighted
			Average												Rentable
	Gross		Leased %					Rentable		Percent					Square		Percent					Rentable		Percent
	Book Value		(2)			Properties		Square Feet		Leased			Properties		Feet		Leased			Properties		Square Feet		Leased
	(in thousands)
Stabilized (3)	$	2,681,454		98.5	%		53		6,643,542		99.1	%		4		72,863		100.0	%		57		6,716,405		99.1	%
Lease up (3)		716,399		59.7	%		22		2,899,960		67.2	%		3		881,695		47.5	%		25		3,781,655		62.6	%

Current operating portfolio		3,397,853		90.3	%		75		9,543,502		89.4	%		7		954,558		51.5	%		82		10,498,060		85.9	%
Long-term lease up (4)		295,402		24.0	%		1		1,389,517		24.0	%		—		—		n/a			1		1,389,517		24.0	%

Total operating portfolio		3,693,255		85.0	%		76		10,933,019		81.1	%		7		954,558		51.5	%		83		11,887,577		78.7	%
Development (5)		54,653		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)		26,025		—			1		152,145		—			—		—		n/a			1		152,145		—

Total property portfolio		3,773,933		84.7	%		78		11,261,164		80.3	%		7		954,558		51.5	%		85		12,215,722		78.0	%

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

Total portfolio	$	3,907,221							13,887,164														14,841,722


(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
MARCH 31, 2011
(In thousands)


	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Assets
Investments in real estate, net	$	3,538,560		$	3,536,114		$	3,207,957		$	3,075,150		$	3,015,632
Investments in unconsolidated partnerships		56,287			57,265			58,565			59,459			55,968
Cash and cash equivalents		19,351			21,467			20,687			21,339			36,800
Restricted cash		6,687			9,971			12,384			11,547			15,304
Accounts receivable, net		7,358			5,874			7,333			2,859			2,501
Accrued straight-line rents, net		110,981			106,905			102,567			96,298			88,981
Acquired above-market leases, net		28,069			30,566			3,796			2,436			2,741
Deferred leasing costs, net		121,658			125,060			88,828			80,373			81,539
Deferred loan costs, net		13,473			11,499			12,394			12,825			12,124
Other assets		56,656			55,033			58,042			65,935			48,605

Total assets	$	3,959,080		$	3,959,754		$	3,572,553		$	3,428,221		$	3,360,195

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	629,640		$	657,922		$	662,522		$	664,867		$	667,175
Secured term loan		—			—			—			—			150,000
Exchangeable senior notes, net		199,613			199,522			199,432			201,396			218,804
Unsecured senior notes, net		645,081			247,571			247,523			247,475			—
Unsecured line of credit		51,000			392,450			14,050			170,500			394,564
Security deposits		11,585			11,749			10,883			10,352			8,003
Dividends and distributions payable		31,086			27,029			26,992			21,728			18,710
Accounts payable, accrued expenses and other liabilities		88,116			98,826			75,319			50,720			49,532
Derivative instruments		2,231			3,826			5,453			6,631			9,568
Acquired below-market leases, net		7,565			7,963			8,031			9,039			10,062

Total liabilities		1,665,917			1,646,858			1,250,205			1,382,708			1,526,418

Equity:
Stockholders’ equity:
Preferred stock		222,413			222,413			222,413			222,413			222,413
Common stock		1,312			1,310			1,308			1,136			1,003
Additional paid-in capital		2,369,922			2,371,488			2,369,952			2,079,153			1,858,212
Accumulated other comprehensive loss		(68,908	)		(70,857	)		(73,840	)		(77,049	)		(81,380	)
Dividends in excess of earnings		(241,894	)		(221,176	)		(207,419	)		(190,010	)		(177,173	)

Total stockholders’ equity		2,282,845			2,303,178			2,312,414			2,035,643			1,823,075
Noncontrolling interests		10,318			9,718			9,934			9,870			10,702

Total equity		2,293,163			2,312,896			2,322,348			2,045,513			1,833,777

Total liabilities and equity	$	3,959,080		$	3,959,754		$	3,572,553		$	3,428,221		$	3,360,195

CONSOLIDATED STATEMENTS OF INCOME
MARCH 31, 2011
(In thousands, except share and per share data)


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Revenues:
Rental	$	80,217		$	79,157		$	72,971		$	72,380		$	70,600
Tenant recoveries		24,581			23,580			22,723			20,273			20,826
Other income		747			2,299			39			259			1,330

Total revenues		105,545			105,036			95,733			92,912			92,756

Expenses:
Rental operations		20,517			20,935			19,998			17,077			17,851
Real estate taxes		10,681			9,745			9,408			8,703			8,722
Depreciation and amortization		33,835			32,196			27,774			26,469			28,915
General and administrative		7,421			6,379			6,805			6,449			6,269
Acquisition related expenses		320			665			420			1,819			150

Total expenses		72,774			69,920			64,405			60,517			61,907

Income from operations		32,771			35,116			31,328			32,395			30,849
Equity in net loss of unconsolidated partnerships		(648	)		(958	)		(308	)		(100	)		(277	)
Interest income		125			46			55			51			20
Interest expense		(21,316	)		(21,526	)		(21,589	)		(21,870	)		(21,260	)
(Loss)/gain on derivative instruments		(1,011	)		181			(287	)		(497	)		150
(Loss)/gain on extinguishment of debt		(43	)		81			(22	)		(1,444	)		(821	)

Net income		9,878			12,940			9,177			8,535			8,661
Net income attributable to noncontrolling interests		(107	)		(178	)		(104	)		(95	)		(121	)

Net income attributable to Company		9,771			12,762			9,073			8,440			8,540
Preferred stock dividends		(4,241	)		(4,241	)		(4,241	)		(4,241	)		(4,241	)

Net income available to common stockholders	$	5,530		$	8,521		$	4,832		$	4,199		$	4,299


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


Weighted-average common shares outstanding:
Basic		129,771,733			129,599,798			112,910,694			109,707,274			98,229,996

Diluted		132,764,842			132,601,048			115,911,944			113,956,077			102,577,329

FFO (1)
MARCH 31, 2011
(In thousands, except per share and ratio amounts)


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net income available to common stockholders	$	5,530		$	8,521		$	4,832		$	4,199		$	4,299
Adjustments:
Noncontrolling interests in operating partnership		125			188			122			109			127
Depreciation & amortization — unconsolidated partnerships		921			1,014			835			694			662
Depreciation & amortization — consolidated entities		33,835			32,196			27,774			26,469			28,915
Depreciation & amortization — allocable to noncontrolling interests of consolidated joint ventures		(26	)		(26	)		(24	)		(22	)		(22	)

FFO	$	40,385		$	41,893		$	33,539		$	31,449		$	33,981

FFO per share	$	0.30		$	0.31		$	0.29		$	0.28		$	0.33


FFO	$	40,385		$	41,893		$	33,539		$	31,449		$	33,981
Interest expense — exchangeable senior notes due 2030 (2)		1,688			1,688			1,681			1,688			1,506

FFO — diluted	$	42,073		$	43,581		$	35,220		$	33,137		$	35,487

FFO per share diluted (2)	$	0.29		$	0.30		$	0.28		$	0.27		$	0.32

Dividends and distributions declared per common share	$	0.20		$	0.17		$	0.17		$	0.15		$	0.14

FFO payout ratio		69.0	%		56.7	%		60.7	%		55.6	%		43.8	%


Weighted-average common shares and units outstanding diluted (3)		134,253,266			133,905,635			117,139,883			113,956,077			102,577,329
Dilutive effect of exchangeable notes due 2030 (2)		9,914,076			9,914,076			9,914,076			9,914,076			9,914,076

Weighted-average common shares and units outstanding diluted — FFO		144,167,342			143,819,711			127,053,959			123,870,153			112,491,405


(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 March 31, 2011, December 31, 2010 and September 30, 2010 include 1,488,424, 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)
MARCH 31, 2011
(In thousands, except per share and ratio amounts)


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO — diluted	$	42,073		$	43,581		$	35,220		$	33,137		$	35,487
Adjustments:
Recurring capital expenditures and tenant improvements (2)		(2,045	)		(2,867	)		(3,208	)		(1,817	)		(2,834	)
Leasing commissions		(3,629	)		(1,799	)		(1,507	)		(1,494	)		(424	)
(Gain)/loss on extinguishment of debt		(398	)		(81	)		22			1,444			821
Loss/(gain) on derivative instruments		1,011			(181	)		287			497			(150	)
Amortization of deferred interest costs		1,765			1,771			1,776			1,781			1,786
Amortization of deferred loan costs		1,058			1,080			1,039			1,040			1,143
Amortization of fair-value of debt acquired		(497	)		(522	)		(476	)		(474	)		(467	)
Amortization of debt discount		141			137			179			208			177
Amortization of lease incentive		518			587			587			535			500
Depreciation included in general and administrative expense		386			376			363			359			347
Non-cash equity compensation		1,871			1,673			1,802			1,725			1,789
Straight line rents		(4,159	)		(5,629	)		(6,113	)		(7,151	)		(6,733	)
Share of unconsolidated partnership adjustments (3)		42			146			423			433			243
Fair-value lease revenue		2,100			1,425			(696	)		(936	)		(894	)

AFFO	$	40,237		$	39,697		$	29,698		$	29,287		$	30,791

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

Dividends and distributions declared per common share	$	0.20		$	0.17		$	0.17		$	0.15		$	0.14

AFFO payout ratio		71.4	%		60.7	%		73.9	%		62.5	%		51.9	%


(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)
MARCH 31, 2011
(In thousands)


	Three Months Ended
	3/31/11		12/31/10		9/30/10		6/30/10		3/31/10
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	5,530	$	8,521	$	4,832	$	4,199	$	4,299
Interest expense		21,316		21,526		21,589		21,870		21,260
Interest expense — unconsolidated partnerships		645		234		557		464		454
Depreciation & amortization — consolidated entities		33,835		32,196		27,774		26,469		28,915
Depreciation & amortization — unconsolidated partnerships		921		1,014		835		694		662

EBITDA		62,247		63,491		55,587		53,696		55,590
Noncontrolling interests		107		178		104		95		121
Preferred dividends		4,241		4,241		4,241		4,241		4,241

Adjusted EBITDA	$	66,595	$	67,910	$	59,932	$	58,032	$	59,952


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

RECONCILIATION OF NET OPERATING INCOME (1)
MARCH 31, 2011
(Dollars in thousands)


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Net income	$	9,878		$	12,940		$	9,177		$	8,535		$	8,661
Equity in net loss of unconsolidated partnerships		648			958			308			100			277
Interest expense		21,316			21,526			21,589			21,870			21,260
Interest income		(125	)		(46	)		(55	)		(51	)		(20	)
Loss/(gain) on derivative instruments		1,011			(181	)		287			497			(150	)
Loss/(gain) on extinguishment of debt		43			(81	)		22			1,444			821

Income from operations		32,771			35,116			31,328			32,395			30,849
Depreciation and amortization		33,835			32,196			27,774			26,469			28,915
General and administrative		7,421			6,379			6,805			6,449			6,269
Acquisition related expenses		320			665			420			1,819			150

Consolidated net operating income	$	74,347		$	74,356		$	66,327		$	67,132		$	66,183


Revenues:
Rental	$	80,217		$	79,157		$	72,971		$	72,380		$	70,600
Tenant recoveries		24,581			23,580			22,723			20,273			20,826
Other income		747			2,299			39			259			1,330

Total revenues		105,545			105,036			95,733			92,912			92,756

Expenses:
Rental operations		20,517			20,935			19,998			17,077			17,851
Real estate taxes		10,681			9,745			9,408			8,703			8,722

Total operating expenses		31,198			30,680			29,406			25,780			26,573


Consolidated net operating income	$	74,347		$	74,356		$	66,327		$	67,132		$	66,183


Consolidated net operating income — cash basis (2)	$	73,130		$	72,390		$	59,960		$	59,718		$	59,173


Operating margin (3)		70.2	%		70.1	%		69.3	%		72.2	%		70.9	%
Operating expense recovery (4)		78.8	%		76.9	%		77.3	%		78.6	%		78.4	%


(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
MARCH 31, 2011
(Dollars in thousands)


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Mortgage notes payable	$	11,377		$	11,829		$	11,838		$	11,845		$	11,858
Secured term loan		—			—			—			222			1,170
Exchangeable senior notes		1,911			1,911			1,915			2,132			1,963
Unsecured senior notes		3,914			3,827			3,829			2,637			—
Unsecured line of credit		1,496			1,101			1,004			933			1,152
Derivative instruments		1,645			1,697			1,676			2,847			4,123

Interest expense — cash basis	$	20,343		$	20,365		$	20,262		$	20,616		$	20,266


Non cash interest expense
Amortization of fair-value of debt acquired		(497	)		(522	)		(476	)		(474	)		(467	)
Amortization of debt discount		141			137			179			208			177
Amortization of deferred loan costs		1,058			1,080			1,039			1,040			1,143
Amortization of deferred interest costs		1,765			1,771			1,776			1,781			1,786
Capitalized interest		(1,494	)		(1,305	)		(1,191	)		(1,301	)		(1,645	)

Interest expense	$	21,316		$	21,526		$	21,589		$	21,870		$	21,260

COVERAGE RATIOS (1)
MARCH 31, 2011
(In thousands, except ratios)


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Interest coverage ratio
Adjusted EBITDA	$	66,595		$	67,910		$	59,932		$	58,032		$	59,952
Interest expense:
Interest expense		21,316			21,526			21,589			21,870			21,260
Interest expense — unconsolidated partnerships		645			234			557			464			454
Amortization of deferred interest costs		(1,765	)		(1,771	)		(1,776	)		(1,781	)		(1,786	)
Amortization of deferred loan costs		(1,058	)		(1,080	)		(1,039	)		(1,040	)		(1,143	)
Amortization of debt discount		(141	)		(137	)		(179	)		(208	)		(177	)
Amortization of fair-value of debt acquired		497			522			476			474			467

Total interest expense	$	19,494		$	19,294		$	19,628		$	19,779		$	19,075


Interest coverage ratio		3.4			3.5			3.1			2.9			3.1


Fixed charge coverage ratio
Adjusted EBITDA	$	66,595		$	67,910		$	59,932		$	58,032		$	59,952
Fixed charges:
Interest expense		21,316			21,526			21,589			21,870			21,260
Interest expense — unconsolidated partnerships		645			234			557			464			454
Amortization of deferred interest costs		(1,765	)		(1,771	)		(1,776	)		(1,781	)		(1,786	)
Amortization of deferred loan costs		(1,058	)		(1,080	)		(1,039	)		(1,040	)		(1,143	)
Amortization of debt discount		(141	)		(137	)		(179	)		(208	)		(177	)
Amortization of fair-value of debt acquired		497			522			476			474			467
Principal payments		1,825			1,912			1,868			1,834			1,812
Preferred dividends		4,241			4,241			4,241			4,241			4,241

Total fixed charges	$	25,560		$	25,447		$	25,737		$	25,854		$	25,128


Fixed charge coverage ratio		2.6			2.7			2.3			2.2			2.4


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

DEBT SUMMARY
MARCH 31, 2011
(Dollars in thousands)


									Unamortized
	Stated			Effective			Principal		Premium /			Carrying		Maturity
	Rate			Rate			Balance		(Discount)			Value		Date
Consolidated debt:
Mortgage notes payable:
Ardentech Court (1)		7.25	%		5.06	%	$	4,205	$	117		$	4,322		07/12
Center for Life Science \| Boston		7.75	%		7.75	%		3 44,744		—			344,744		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		63,749		3,179			66,928		12/18
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,458		172			6,630		09/12
Shady Grove Road		5.97	%		5.97	%		147,000		—			147,000		09/16
Sidney Street		7.23	%		5.11	%		27,153		681			27,834		06/12
Sorrento West		7.42	%		2.72	%		13,181		406			13,587		11/11
9865 Towne Centre Drive		7.95	%		7.95	%		17,572		—			17,572		06/13
900 Uniqema Boulevard		8.61	%		5.61	%		963		60			1,023		05/15

Total / weighted average on fixed rate mortgages		7.16	%		6.84	%		625,025		4,615			629,640

Fixed rate debt:
Unsecured exchangeable senior notes due 2026		4.50	%		6.45	%		19,800		(187	)		19,613		10/26
Unsecured exchangeable senior notes due 2030		3.75	%		3.75	%		180,000		—			180,000		01/30
Unsecured senior notes due 2016		3.85	%		3.99	%		400,000		(2,539	)		397,461		04/16
Unsecured senior notes due 2020		6.13	%		6.27	%		250,000		(2,380	)		247,620		04/20

Total / weighted average fixed rate debt		5.63	%		5.59	%		1,474,825		(491	)		1,474,334

Variable rate debt:
$720 million unsecured line of credit		1.36	%		1.36	%		51,000		—			51,000		08/11

Total / weighted average variable rate debt		1.36	%		1.36	%		51,000		—			51,000

Total / weighted average consolidated debt		5.49	%		5.44	%	$	1,525,825	$	(491	)	$	1,525,334


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	%		40,709		—			40,709		08/11

Total / weighted average share of unconsolidated partnership debt		2.76	%		2.76	%		81,359		—			81,359


Total / weighted average consolidated and share of unconsolidated partnership debt		5.35	%		5.31	%	$	1,607,184	$	(491	)	$	1,606,693


(1)		Subsequent to quarter-end, the Ardentech Court note was voluntarily prepaid in full prior to its scheduled maturity.

DEBT ANALYSIS
MARCH 31, 2011
(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	$	625,025		41.0	%		7.16	%		6.84	%
Unsecured debt		900,800		59.0	%		4.33	%		4.73	%

Total consolidated debt	$	1,525,825		100.0	%		5.49	%		5.59	%


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	$	1,474,825		96.7	%		5.63	%		5.59	%
Variable rate debt — hedged		51,000		3.3	%		1.36	%		5.80	%

Total consolidated debt	$	1,525,825		100.0	%		5.49	%		5.59	%

DEBT MATURITIES
MARCH 31, 2011
(In thousands)

Weighted average debt maturity is 6.9 years for consolidated debt.


	2011		2012		2013		2014		2015		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	18,968	$	44,879	$	25,370	$	339,020	$	6,253	$	190,535	$	625,025
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 2016		—		—		—		—		—		400,000		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000

Total fixed rate debt		18,968		44,879		25,370		339,020		6,253		1,040,335		1,474,825
Variable rate debt:
$720 million unsecured line of credit (3)		51,000		—		—		—		—		—		51,000

Total variable rate debt		51,000		—		—		—		—		—		51,000

Total consolidated debt	$	69,968	$	44,879	$	25,370	$	339,020	$	6,253	$	1,040,335	$	1,525,825

Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)	$	—	$	40,650	$	—	$	—	$	—	$	—	$	40,650
PREI secured construction loan (20%) (variable)		40,709		—		—		—		—		—		40,709

Share of total unconsolidated partnership debt	$	40,709	$	40,650	$	—	$	—	$	—	$	—	$	81,359


Total consolidated and share of unconsolidated partnership debt	$	110,677	$	85,529	$	25,370	$	339,020	$	6,253	$	1,040,335	$	1,607,184


(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.

COMMON AND PREFERRED STOCK DATA
MARCH 31, 2011
(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	3/31/11			12/31/10			9/30/10			6/30/10			3/31/10
Earnings per share
Weighted average common shares outstanding		129,772			129,600			112,911			109,707			98,229
Weighted average OP and LTIP units outstanding		2,993			3,001			3,001			3,019			3,058
Dilutive effect of restricted stock		—			—			—			1,230			1,290

Diluted common shares — EPS		132,765			132,601			115,912			113,956			102,577


Funds from operations
Weighted average common shares outstanding		129,772			129,600			112,911			109,707			98,229
Weighted average OP and LTIP units outstanding		2,993			3,001			3,001			3,019			3,058
Dilutive effect of restricted stock		1,488			1,305			1,228			1,230			1,290
Dilutive effect of exchangeable senior notes due 2030		9,914			9,914			9,914			9,914			9,914

Diluted common shares — FFO		144,167			143,820			127,054			123,870			112,491


Closing common shares, OP and LTIP units outstanding		134,229			134,048			133,832			116,579			103,350
Preferred shares outstanding		9,200			9,200			9,200			9,200			9,200

High price	$	19.19		$	19.50		$	19.25		$	19.50		$	17.88
Low price	$	16.72		$	16.64		$	14.79		$	15.04		$	13.36
Average closing price	$	17.92		$	18.21		$	17.52		$	17.39		$	15.70
Closing price	$	19.02		$	18.65		$	17.92		$	16.09		$	16.54
Dividends per share — annualized	$	0.80		$	0.68		$	0.68		$	0.60		$	0.56
Closing dividend yield — annualized		4.2	%		3.6	%		3.8	%		3.7	%		3.4	%

DIVIDENDS PER SHARE

3/31/11

12/31/10

9/30/10

6/30/10

3/31/10

Common Stock — BMR

Amount

0.20

0.17

0.15

0.14

Declared

March 14, 2011

December 15, 2010

September 15, 2010

June 15, 2010

March 15, 2010

Record

March 31, 2011

December 31, 2010

September 30, 2010

June 30, 2010

March 31, 2010

Paid

April 15, 2011

January 17, 2011

October 15, 2010

July 15, 2010

April 15, 2010

Preferred Stock — BMR PrA

Amount

0.46094

Declared

March 14, 2011

December 15, 2010

September 15, 2010

June 15, 2010

March 15, 2010

Record

March 31, 2011

December 31, 2010

September 30, 2010

June 30, 2010

March 31, 2010

Paid

April 15, 2011

January 17, 2011

October 15, 2010

July 15, 2010

April 15, 2010

MARKET SUMMARY
MARCH 31, 2011


			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		2,259,627	$	124,934		34.3	%	$	55.29	$	132,586		31.0	%	$	58.68
San Francisco		1,659,937		56,636		15.5	%		34.12		70,651		16.5	%		42.56
San Diego		1,739,804		56,085		15.4	%		32.24		69,578		16.3	%		39.99
Maryland		1,502,766		54,721		15.0	%		36.41		70,858		16.6	%		47.15
New York / New Jersey		1,089,345		36,627		10.1	%		33.62		45,393		10.6	%		41.67
Pennsylvania		700,376		15,637		4.3	%		22.33		17,023		4.0	%		24.31
Seattle		197,473		8,606		2.4	%		43.58		9,858		2.3	%		49.92
University Related — Other		381,390		11,108		3.0	%		29.13		12,137		2.7	%		31.82

Total portfolio / weighted average		9,530,718	$	364,354		100.0	%	$	38.23	$	428,084		100.0	%	$	44.92


(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
MARCH 31, 2011


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		3/31/11			12/31/10
	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		6.9	%		672,900		95.6	%		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	%		19,453		21.4	%		56.8	%
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		61,011		0.5	%		28,061		46.0	%		—

	Total Boston				18		2,009,816		18.4	%		1,840,654		91.6	%		90.6	%

	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	Stabilized		2		201,567		1.8	%		186,616		92.6	%		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		240,000		2.1	%		121,008		50.4	%		50.0	%
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	%		100.0	%
23	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.8	%		49,915		56.8	%		56.8	%
24	Pacific Research Center	July 11, 2006	Lease Up		10		1,389,517		12.3	%		333,641		24.0	%		24.0	%
25	Science Center at Oyster Point	October 26, 2010	Stabilized		2		204,887		1.8	%		204,887		100.0	%		100.0	%

	Total San Francisco				34		3,137,879		27.7	%		1,659,937		52.9	%		50.9	%

	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	%		100.0	%
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	%		100.0	%
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	%		59,731		87.8	%		79.6	%
38	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		0.9	%		88,274		83.8	%		75.7	%
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	%		100.0	%
44	Sorrento West	October 15, 2010	Stabilized		8		163,799		1.5	%		161,037		98.3	%		91.1	%

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
MARCH 31, 2011


						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		3/31/11			12/31/10
	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	%		1,666,941		92.2	%		90.7	%

	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		5.6	%		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		13.3	%		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		759,716		6.7	%		663,865		87.4	%		85.3	%
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		1,241,957		10.9	%		1,089,345		87.7	%		86.5	%

	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	Lease Up		1		76,561		0.7	%		66,932		87.4	%		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	%		700,376		90.0	%		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	%		81,632		84.9	%		66.8	%
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	%		197,473		50.4	%		46.0	%

	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	%		82.0	%
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	%		100.0	%

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

	Total / weighted average				140		11,261,164		100.0	%		9,038,882		80.3	%		79.1	%


(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
MARCH 31, 2011
(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	%		—	$	47,600	$	77,500		Q3 2011

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


Total / weighted average				176,000		100.0	%		—	$	47,600	$	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

—

25,800

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
MARCH 31, 2011
(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

3/31/11

12/31/10

Market

McKellar Court

1 McKellar Court

September 30, 2004

Stabilized

72,863

100.0

San Diego

PREI

2 320 Bent Street

April 4, 2007

Lease Up

184,405

145,304

78.8

Boston

3 301 Binney Street

April 4, 2007

Lease Up

417,290

273,669

65.6

58.3

Boston

4 301 Binney Garage

April 4, 2007

Lease Up

503 Stalls

n/a

Boston

5 650 E. Kendall Street (Kendall B)

April 4, 2007

Lease Up

280,000

—

Boston

6 350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1,409 Stalls

n/a

Boston

7 Kendall Crossing Apartments

April 4, 2007

Stabilized

37 Apts.

n/a

Boston


	McKellar
	McKellar Court (2)			PREI			Total
Total assets	$	14,665		$	647,692		$	662,357
Total debt (3)		10,280			406,797			417,077
Current annualized base rent		1,882			24,792			26,674

BioMed’s net investment in unconsolidated partnerships	$	12,479		$	43,808		$	56,287
BioMed’s pro rata share of debt		—			81,359			81,359
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
MARCH 31, 2011

Weighted average remaining lease term is 8.1 years for the consolidated portfolio and 8 years for the total portfolio.


						Current (1)							Expiration (2)
											Annualized							Annualized
			Percent of					Percent of			Base Rent				Percent of			Base Rent
	Leased		Leased			Annualized		Annualized			per Leased		Annualized		Annualized			per Leased
Expiration	Square Feet		Square Feet			Base Rent		Base Rent			Square Feet		Base Rent		Base Rent			Square Feet
						(in thousands)							(in thousands)
Month-to-month		38,483		0.4	%	$	453		0.1	%	$	11.77	$	553		0.1	%	$	14.37
Second quarter 2011		175,344		1.8	%		3,220		0.9	%		18.36		3,226		0.8	%		18.40
Third quarter 2011		62,806		0.7	%		1,959		0.5	%		31.19		1,959		0.5	%		31.19
Fourth quarter 2011		34,652		0.4	%		630		0.2	%		18.18		630		0.1	%		18.18

2011		272,802		2.9	%		5,809		1.6	%		21.29		5,815		1.4	%		21.32
2012		481,320		5.1	%		20,835		5.7	%		43.29		21,367		5.0	%		44.39
2013		688,152		7.2	%		17,356		4.8	%		25.22		18,554		4.3	%		26.96
2014		782,828		8.2	%		21,594		5.9	%		27.58		23,112		5.4	%		29.52
2015		356,006		3.7	%		11,267		3.1	%		31.65		12,342		2.9	%		34.67
2016		1,376,459		14.4	%		52,898		14.5	%		38.43		58,049		13.6	%		42.17
2017		127,351		1.3	%		3,992		1.1	%		31.35		4,751		1.1	%		37.31
2018		1,136,622		11.9	%		50,984		14.0	%		44.86		57,078		13.3	%		50.22
2019		270,150		2.8	%		7,763		2.1	%		28.74		9,662		2.3	%		35.77
2020		400,771		4.2	%		16,084		4.4	%		40.13		14,522		3.4	%		36.24
Thereafter		3,599,774		37.9	%		155,319		42.7	%		43.15		202,279		47.2	%		56.19


Total / weighted average		9,530,718		100.0	%	$	364,354		100.0	%	$	38.23	$	428,084		100.0	%	$	44.92


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

EXPIRATIONS BY MARKET
MARCH 31, 2011


	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		Maryland		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		5,808		—		32,675		—		—		—		38,483
2011		5,295		10,000		56,465		113,784		9,567		73,189		4,502		—		272,802
2012		21,705		194,161		179,536		—		50,328		13,377		22,213		—		481,320
2013		12,972		213,826		267,533		—		136,609		44,318		3,962		8,932		688,152
2014		28,019		55,098		110,324		121,414		—		396,776		19,108		52,089		782,828
2015		28,061		57,950		218,750		—		—		34,753		—		16,492		356,006
2016		648,501		307,069		19,890		—		12,063		31,166		68,160		289,610		1,376,459
2017		—		—		30,776		51,181		45,394		—		—		—		127,351
2018		807,347		121,590		150,790		—		—		—		42,628		14,267		1,136,622
2019		2,676		61,757		—		168,817		—		—		36,900		—		270,150
2020		111,144		49,915		72,863		122,600		44,249		—		—		—		400,771
Thereafter		593,907		588,571		627,069		924,970		758,460		106,797		—		—		3,599,774

Total		2,259,627		1,659,937		1,739,804		1,502,766		1,089,345		700,376		197,473		381,390		9,530,718

10 LARGEST TENANTS
MARCH 31, 2011

BioMed’s properties were leased to 157 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		9.7	%	$	42,756	$	46.22		11.7	%	June 2026
2 Vertex Pharmaceuticals Incorporated (2)		685,286		7.2	%		33,588		49.01		9.2	%	Multiple
3 Elan Pharmaceuticals, Inc. (3)		419,628		4.4	%		26,438		63.00		7.3	%	Multiple
4 Beth Israel Deaconess Medical Center, Inc.		362,364		3.8	%		25,543		70.49		7.0	%	July 2023
5 Regeneron Pharmaceuticals, Inc. (4)		568,694		6.0	%		22,832		40.15		6.3	%	Multiple
6 sanofi-aventis U.S. Inc. (5)		418,003		4.4	%		19,469		46.58		5.3	%	Multiple
7 Ironwood Pharmaceuticals, Inc. (6)		193,986		2.0	%		10,048		51.80		2.8	%	February 2016
8 Merck & Co., Inc. (7)		214,946		2.3	%		10,017		46.60		2.7	%	Multiple
9 Children’s Hospital Corporation		150,215		1.6	%		9,151		60.92		2.5	%	May 2023
10 Centocor Ortho Biotech Inc. (Johnson & Johnson)		374,387		3.9	%		8,490		22.68		2.3	%	April 2014

Total / weighted average (8)		4,312,479		45.3	%	$	208,332	$	48.31		57.1	%


(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 expire June 2012, 81,204 square feet expire October 2013, 292,758 square feet expire January 2016, and 290,716 square feet expire May 2018.

(3)		5,198 square feet expire January 2012, 154,445 square feet expire January 2013, 55,098 square feet expire January 2015, 115,888 square feet expire April 2024, and 88,999 square feet expire February 2025.

(4)		16,725 square feet are on a month-to-month basis, 6,568 square feet expire September 2011, and 545,401 square feet expire July 2024.

(5)		Subsequent to quarter-end, sanofi-aventis U.S. Inc. acquired Genzyme, a tenant that leases 343,000 square feet at 500 Kendall Street. 343,000 square feet expire August 2018 and 75,003 square feet expire October 2018.

(6)		The Company owns 20% of the limited liability company that owns 301 Binney, at which this tenant leases 193,986 square feet.

(7)		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 expire July 2012, 30,589 square feet expire January

		2014 and 145,304 square feet expire September 2016.

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

SAME PROPERTY ANALYSIS
MARCH 31, 2011

(Dollars in thousands)


	Quarter Ended
	3/31/11			3/31/10			Percent Change
Total Same Property Portfolio (1)
Number of properties		66			66
Rentable square feet		9,949,261			9,949,261
Percent of total portfolio		81.4	%		92.4	%
Percent leased		79.7	%		78.7	%

Revenues:
Rental	$	74,312		$	74,778			(0.6	%)
Tenant recoveries		25,373			24,177			4.9	%

Total revenues		99,685			98,955			0.7	%


Expenses:
Rental operations		20,493			19,440			5.4	%
Real estate taxes		9,995			9,849			1.5	%

Total expenses		30,488			29,289			4.1	%

Same property net operating income (2)	$	69,197		$	69,666			(0.7	%)

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(1,659	)		(6,959	)		(76.2	%)

Same property net operating income — cash basis (2) (3)	$	67,538		$	62,707			7.7	%


Rental revenue — cash basis (3)	$	72,337		$	67,541			7.1	%


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

(2)		For a definition and discussion of net operating income, see page 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
MARCH 31, 2011


			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
2011 acquisitions		—		—		—

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


(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.

LEASING ACTIVITY (1)
MARCH 31, 2011


				Current
	Leased			Annualized
	Square			Base Rent per
	Feet			Leased Sq Ft
Leased Square Feet as of December 31, 2010		9,346,551
Expirations		(288,255	)	$	24.20
Pre-leased delivery		9,176			18.12
Renewals, amendments, and extensions		230,780			19.08
New leases		232,466			34.21

Leased Square Feet as of March 31, 2011		9,530,718


Pre-leased Square Feet as of December 31, 2010		22,098
Pre-leased delivery		(9,176	)		18.12

Pre-leased Square Feet as of March 31, 2011		12,922


Gross Leasing Activity — First Quarter 2011		463,246			26.67


Net Absorption		184,167		$	30.11


(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
MARCH 31, 2011


	Three Months Ended
	3/31/11		12/31/10		9/30/10		6/30/10		3/31/10
Renewals, Amendments, and Extensions (1)
Number of renewals		12		5		4		3		5
Square feet		230,780		167,310		141,310		33,468		70,526
Tenant improvement costs per square foot (2)	$	1.05	$	3.07	$	—	$	29.88	$	1.66
Leasing commission costs per square foot (2)		1.73		5.06		6.36		3.33		3.78

Total tenant improvement and leasing commission costs psf	$	2.78	$	8.13	$	6.36	$	33.21	$	5.44


New Leases (3)
Number of leases		15		8		10		9		8
Square feet		232,466		161,876		90,351		126,407		84,581
Tenant improvement costs per square foot (2)	$	23.62	$	88.54	$	43.06	$	64.22	$	44.09
Leasing commission costs per square foot (2)		8.61		13.05		6.76		8.82		8.91

Total tenant improvement and leasing commission costs psf	$	32.23	$	101.59	$	49.82	$	73.03	$	53.00


Total
Number of renewals/leases		27		13		14		12		13
Square feet		463,246		329,186		231,661		159,875		155,107
Tenant improvement costs per square foot (2)	$	12.37	$	45.10	$	16.79	$	57.03	$	24.80
Leasing commission costs per square foot (2)		5.18		8.99		6.52		7.67		6.57

Total tenant improvement and leasing commission costs psf	$	17.55	$	54.09	$	23.31	$	64.70	$	31.37


(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
MARCH 31, 2011

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) and Adjusted Funds from Operations (AFFO)

We present funds from operations, or FFO, and adjusted funds from operations, or AFFO, available to common shares and partnership and LTIP units because we consider them important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and AFFO 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.

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.

Our computation of FFO and AFFO may differ from the methodology for calculating FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and AFFO do not represent cash flow available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO and AFFO 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. FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures 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
MARCH 31, 2011

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

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