BioMed Realty Trust Inc - FORM 8-K - EX-99.2 - BIOMED REALTY TRUST, INC. SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Attached files

file	filename
EX-99.1 - PRESS RELEASE ISSUED BY BIOMED REALTY TRUST, INC. ON AUGUST 3, 2011 - BioMed Realty Trust Inc	dex991.htm
8-K - FORM 8-K - BioMed Realty Trust Inc	d8k.htm

Exhibit 99.2

LOGO

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

JUNE 30, 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

LOGO

TABLE OF CONTENTS

JUNE 30, 2011


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

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.

LOGO

SECOND QUARTER HIGHLIGHTS

JUNE 30, 2011

•

Generated record total revenues for the third consecutive quarter of $106.8 million, up 14.9% from $92.9 million in the same period in 2010. Rental revenues for the quarter increased by 12.5% to $81.4 million from $72.4 million in the same period in 2010, also the highest in the company’s history for the third consecutive quarter.

•

Executed 20 leasing transactions representing approximately 602,500 square feet, the fifth consecutive quarter with an increase in total leasing volume:

•

Twelve new leases totaling approximately 500,100 square feet.

•

Eight lease renewals totaling approximately 102,400 square feet.

•

The current operating portfolio’s leased percentage was approximately 90.5% leased at quarter end.

•

Increased same property net operating income on a cash basis for the quarter by 6.8% and increased the same property leased percentage by 290 basis points as compared to the same period in 2010.

•

Acquired Ardsley Park, a life science campus in Ardsley, New York, for $18.0 million comprising approximately 160,500 square feet of laboratory and office space and 500,000 square feet of future redevelopment and development potential. Concurrently, the company announced the signing of a new 15-year lease with Acorda Therapeutics, Inc. for approximately 138,200 square feet of laboratory and office space. Pursuant to the lease agreement, BioMed will proceed on an extensive renovation of the property over the next twelve months, bringing the estimated total investment in the property upon lease commencement to approximately $36.0 million.

•

Acquired the 1701 / 1711 Research Boulevard property in Rockville, Maryland comprising approximately 104,700 square feet of existing office space for redevelopment and an additional 145,000 square feet of future development potential for a total investment of approximately $17.5 million.

•

Acquired 450 Kendall Street in Cambridge, Massachusetts comprising approximately 33,500 square feet of development potential in the Kendall Square area for $5.0 million.

•

Increased funds from operations (FFO) for the quarter to $42.1 million ($0.29 per diluted share), as compared to $33.1 million ($0.27 per diluted share) in the second quarter of 2010, an increase of 27.1%.

•

Increased adjusted funds from operations (AFFO) for the quarter to $38.3 million ($0.27 per diluted share), as compared to $30.0 million ($0.24 per diluted share) in the second quarter of 2010, an increase of 27.4%.

•

The company reported net income available to stockholders for the quarter of $3.6 million ($0.03 per diluted share), as compared to $4.2 million ($0.04 per diluted share) for the same period in 2010.

•

Added Robert M. Sistek as Vice President, Finance. Prior to joining BioMed, Mr. Sistek was Senior Vice President of Capital Markets at Coresite Realty Corporation.

About BioMed Realty Trust, Inc.

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 owns or has interests in properties comprising approximately 12.3 million rentable square feet. The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, Maryland, San Diego, New York/New Jersey, Pennsylvania and Seattle, which have well-established reputations as centers for scientific research. Additional information is available at www.biomedrealty.com.

LOGO

INVESTOR INFORMATION

JUNE 30, 2011



Company Information
Corporate Headquarters	Trading Symbols	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive San Diego, CA 92128	BMR BMR PrA	BNY Mellon Shareowner Services	New York Stock Exchange
(858) 485-9840		480 Washington Boulevard
(858) 485-9843 (fax)		Jersey City, NJ 07310-1900
		(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	Bruce D. Steel
Chairman	Chairman and Chief Executive Officer	Senior Vice President,	Managing Director,
Barbara R. Cambon	R. Kent Griffin, Jr.	Asset Management	BioMed Ventures
	President and Chief Operating Officer	John P. Bonanno	Stephen A. Willey
Edward A. Dennis, Ph.D.	Gary A. Kreitzer	Senior Vice President,	Vice President,
	Executive Vice President,	Leasing & Development	Chief Accounting Officer
Richard I. Gilchrist	General Counsel and Director	Jonathan P. Klassen	Janice L. Kameir
	Matthew G. McDevitt	Vice President,	Vice President,
Gary A. Kreitzer	Executive Vice President,	Assistant General Counsel and	Human Resources
	Real Estate	Secretary	Robert M. Sistek
Theodore D. Roth	Greg N. Lubushkinppb	Kevin M. Simonsen	Vice President,
	Chief Financial Officer	Vice President,	Finance
M. Faye Wilson		Real Estate Counsel

Tentative Schedule for Quarterly Results
Third Quarter 2011	November 2, 2011
Fourth Quarter 2011	February 8, 2012
First Quarter 2012	May 2, 2012
Second Quarter 2012	August 1, 2012

LOGO

EQUITY RESEARCH COVERAGE

JUNE 30, 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

Morgan Stanley	Paul Morgan / Chris Caton	(415) 576-2627 / (415) 576-2637	paul.b.morgan@morganstanley.com / chris.caton@morganstanley.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) 445-6520 / (314) 445-6515	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

LOGO

FINANCIAL AND OPERATING HIGHLIGHTS

JUNE 30, 2011

(In thousands, except per share and ratio amounts)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Selected Operating Data
Total revenues	$	106,798		$	105,545		$	105,036		$	95,733		$	92,912
EBITDA (1)		64,441			62,247			63,491			55,587			53,696
Adjusted EBITDA (1)		68,750			66,595			67,910			59,932			58,032
Net operating income - cash basis (2)		72,485			73,130			72,390			59,960			59,718
General and administrative expense		7,519			7,421			6,379			6,805			6,449
Acquisition related expenses		334			320			665			420			1,819
Interest expense		23,457			21,316			21,526			21,589			21,870
Capitalized interest		1,817			1,494			1,305			1,191			1,301
Interest incurred including swap payments (3)		25,266			22,862			22,854			22,791			23,411
Operating margin (4)		70.4	%		70.2	%		70.1	%		69.3	%		72.2	%
General and administrative expense / Total revenues		7.0	%		7.0	%		6.1	%		7.1	%		6.9	%
Net income available to common stockholders		3,638			5,530			8,521			4,832			4,199
Net income per share - diluted	$	0.03		$	0.04		$	0.06		$	0.04		$	0.04
FFO - diluted (5)		42,114			42,073			43,581			35,220			33,137
FFO per share - diluted (5)	$	0.29		$	0.29		$	0.30		$	0.28		$	0.27
AFFO (5)		38,277			42,977			40,609			30,332			30,038
AFFO per share - diluted (5)	$	0.27		$	0.30		$	0.28		$	0.24		$	0.24
Dividend per share - common stock	$	0.20		$	0.20		$	0.17		$	0.17		$	0.15
FFO payout ratio (6)		69.0	%		69.0	%		56.7	%		60.7	%		55.6	%
AFFO payout ratio (6)		74.1	%		66.7	%		60.7	%		70.8	%		62.5	%

(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.

LOGO

CAPITALIZATION SUMMARY

JUNE 30, 2011

(In thousands, except per share and ratio amounts)


		6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Capitalization:
Total common shares outstanding			131,260			131,240			131,047			130,831			113,578
Total units outstanding (1)			2,980			2,989			3,001			3,001			3,001

Total common shares and units outstanding			134,240			134,229			134,048			133,832			116,579
Common share price at quarter end		$	19.24		$	19.02		$	18.65		$	17.92		$	16.09

Equity value at quarter end		$	2,582,770		$	2,553,027		$	2,499,990		$	2,398,274		$	1,875,763
Preferred stock at liquidation value			230,000			230,000			230,000			230,000			230,000
Consolidated debt			1,590,049			1,525,825			1,494,567			1,120,820			1,281,237

Total capitalization		$	4,402,819		$	4,308,852		$	4,224,557		$	3,749,094		$	3,387,000

Debt / Total assets			39.8	%		38.5	%		37.7	%		31.4	%		37.4	%
Debt / Total capitalization			36.1	%		35.4	%		35.4	%		29.9	%		37.8	%
Coverage ratios (2):
Debt / Adjusted EBITDA			5.8			5.7			5.5			4.7			5.5
Interest coverage			3.2			3.4			3.5			3.1			2.9
Fixed charge coverage			2.5			2.6			2.7			2.3			2.2
Total consolidated debt:
Secured debt / Total assets			15.6	%		15.9	%		16.6	%		18.5	%		19.4	%
Floating rate debt / Total debt			7.6	%		3.3	%		26.3	%		1.3	%		13.3	%
Adjusted floating rate debt / Total debt			0.0	%		0.0	%		16.2	%		0.0	%		1.6	%
Unencumbered real estate / Total real estate			69.6	%		68.1	%		66.7	%		63.0	%		61.3	%
Unencumbered CABR / Total CABR (3)			70.5	%		69.4	%		68.7	%		64.8	%		64.8	%
Unsecured line of credit capacity (4)		$	591,000		$	661,200		$	319,750		$	698,150		$	537,806

	Requirements
Bond covenants (5):
Total outstanding debt / Total assets	Must be£ 60%		37.4	%		36.5	%		36.1	%		29.7	%		35.4	%
Secured debt / Total assets	Must be £ 40%		14.6	%		15.0	%		15.8	%		17.4	%		18.2	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		2.8			2.7			3.1			2.6			2.5
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		312	%		327	%		339	%		536	%		373	%
Unencumbered assets / Unsecured debt - Notes due 2016	Must be ³ 150%		307	%		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)	Subsequent to quarter end, the company entered into a new $750 million unsecured line of credit which has a maturity date of July 13, 2015, replacing the previously existing $720 million unsecured line of credit.

(5)

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 31, 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.

LOGO

PORTFOLIO SUMMARY

JUNE 30, 2011


	Gross Book Value		Buildings		Rentable Square Feet		Percent Leased (1)
	(In thousands)
Stabilized (2)	$	2,713,832		93		6,761,208		99.2	%
Lease up (2)		677,612		31		2,634,383		55.8	%

Current operating portfolio		3,391,444		124		9,395,591		90.5	%

Long-term lease up (3)		307,093		10		1,389,517		50.5	%

Total operating portfolio	$	3,698,537		134		10,785,108		87.2	%


	Gross Book Value		Buildings		Rentable Square Feet		Percent Leased (1)
	(In thousands)
Redevelopment (4)	$	42,518		9		357,817		57.1	%
Development (4)		65,958		1		176,000		100.0	%
Unconsolidated partnership portfolio (5)		55,313		7		954,558		53.7	%
Development potential (4)		173,439		—		3,506,937		—

Total portfolio	$	4,035,765		151		15,780,420

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

(2)	See pages 22-23 for detail of consolidated portfolio and page 34 for definitions of terms.

(3)	Includes Pacific Research Center properties comprising Pacific Industrial Center, Pacific Research Center North and Pacific Research Center South.

(4)	See page 24 for detail of the consolidated portfolio and page 34 for definitions of terms.

(5)	See page 25 for detail of the unconsolidated partnership portfolio.

LOGO

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2011

(In thousands)


	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Assets
Investments in real estate, net	$	3,584,259		$	3,538,560		$	3,536,114		$	3,207,957		$	3,075,150
Investments in unconsolidated partnerships		55,313			56,287			57,265			58,565			59,459
Cash and cash equivalents		12,033			19,351			21,467			20,687			21,339
Restricted cash		6,614			6,687			9,971			12,384			11,547
Accounts receivable, net		2,486			7,358			5,874			7,333			2,859
Accrued straight-line rents, net		116,896			110,981			106,905			102,567			96,298
Acquired above-market leases, net		26,340			28,069			30,566			3,796			2,436
Deferred leasing costs, net		123,299			121,658			125,060			88,828			80,373
Deferred loan costs, net		12,325			13,473			11,499			12,394			12,825
Other assets		53,285			56,656			55,033			58,042			65,935

Total assets	$	3,992,850		$	3,959,080		$	3,959,754		$	3,572,553		$	3,428,221

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	623,121		$	629,640		$	657,922		$	662,522		$	664,867
Exchangeable senior notes, net		199,706			199,613			199,522			199,432			201,396
Unsecured senior notes, net		645,246			645,081			247,571			247,523			247,475
Unsecured line of credit		121,200			51,000			392,450			14,050			170,500
Security deposits		11,571			11,585			11,749			10,883			10,352
Dividends and distributions payable		31,089			31,086			27,029			26,992			21,728
Accounts payable, accrued expenses and other liabilities		79,274			88,116			98,826			75,319			50,720
Derivative instruments		580			2,231			3,826			5,453			6,631
Acquired below-market leases, net		7,201			7,565			7,963			8,031			9,039

Total liabilities		1,718,988			1,665,917			1,646,858			1,250,205			1,382,708
Equity:
Stockholders’ equity:
Preferred stock		222,413			222,413			222,413			222,413			222,413
Common stock		1,313			1,312			1,310			1,308			1,136
Additional paid-in capital		2,371,762			2,369,922			2,371,488			2,369,952			2,079,153
Accumulated other comprehensive loss		(66,880	)		(68,908	)		(70,857	)		(73,840	)		(77,049	)
Dividends in excess of earnings		(264,507	)		(241,894	)		(221,176	)		(207,419	)		(190,010	)

Total stockholders’ equity		2,264,101			2,282,845			2,303,178			2,312,414			2,035,643
Noncontrolling interests		9,761			10,318			9,718			9,934			9,870

Total equity		2,273,862			2,293,163			2,312,896			2,322,348			2,045,513

Total liabilities and equity	$	3,992,850		$	3,959,080		$	3,959,754		$	3,572,553		$	3,428,221

LOGO

CONSOLIDATED STATEMENTS OF INCOME

JUNE 30, 2011

(In thousands, except share and per share data)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Revenues:
Rental	$	81,436		$	80,217		$	79,157		$	72,971		$	72,380
Tenant recoveries		24,821			24,581			23,580			22,723			20,273
Other income		541			747			2,299			39			259

Total revenues		106,798			105,545			105,036			95,733			92,912

Expenses:
Rental operations		21,162			20,517			20,935			19,998			17,077
Real estate taxes		10,338			10,681			9,745			9,408			8,703
Depreciation and amortization		35,788			33,835			32,196			27,774			26,469
General and administrative		7,519			7,421			6,379			6,805			6,449
Acquisition related expenses		334			320			665			420			1,819

Total expenses		75,141			72,774			69,920			64,405			60,517

Income from operations		31,657			32,771			35,116			31,328			32,395
Equity in net loss of unconsolidated partnerships		(466	)		(648	)		(958	)		(308	)		(100	)
Interest income		79			125			46			55			51
Interest expense		(23,457	)		(21,316	)		(21,526	)		(21,589	)		(21,870	)
Gain/(loss) on derivative instruments		383			(1,011	)		181			(287	)		(497	)
(Loss)/gain on extinguishment of debt		(249	)		(43	)		81			(22	)		(1,444	)

Net income		7,947			9,878			12,940			9,177			8,535
Net income attributable to noncontrolling interests		(68	)		(107	)		(178	)		(104	)		(95	)

Net income attributable to Company		7,879			9,771			12,762			9,073			8,440
Preferred stock dividends		(4,241	)		(4,241	)		(4,241	)		(4,241	)		(4,241	)

Net income available to common stockholders	$	3,638		$	5,530		$	8,521		$	4,832		$	4,199

Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.03		$	0.04		$	0.06		$	0.04		$	0.04

Weighted-average common shares outstanding:
Basic		129,858,098			129,771,733			129,599,798			112,910,694			109,707,274

Diluted		132,840,932			132,764,842			132,601,048			115,911,944			113,956,077

LOGO

FFO (1)

JUNE 30, 2011

(In thousands, except share, per share and ratio amounts)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net income available to common stockholders	$	3,638		$	5,530		$	8,521		$	4,832		$	4,199
Adjustments:
Noncontrolling interests in operating partnership		82			125			188			122			109
Depreciation & amortization - unconsolidated partnerships		944			921			1,014			835			694
Depreciation & amortization - consolidated entities		35,788			33,835			32,196			27,774			26,469
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(26	)		(26	)		(26	)		(24	)		(22	)

FFO	$	40,426		$	40,385		$	41,893		$	33,539		$	31,449

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

FFO	$	40,426		$	40,385		$	41,893		$	33,539		$	31,449
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,681			1,688

FFO - diluted	$	42,114		$	42,073		$	43,581		$	35,220		$	33,137

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

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

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

Weighted-average common shares and units outstanding diluted (3)		134,236,306			134,253,266			133,905,635			117,139,883			113,956,077
Dilutive effect of exchangeable senior notes due 2030 (2)		10,017,858			9,914,076			9,914,076			9,914,076			9,914,076

Weighted-average common shares and units outstanding diluted - FFO		144,254,164			144,167,342			143,819,711			127,053,959			123,870,153

(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 June 30, 2011, March 31, 2011, December 31, 2010 and September 30, 2010 include 1,395,374, 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.

LOGO

AFFO (1)

JUNE 30, 2011

(In thousands, except per share and ratio amounts)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO - diluted	$	42,114		$	42,073		$	43,581		$	35,220		$	33,137
Adjustments:
Recurring capital expenditures and tenant improvements (2)		(4,520	)		(2,045	)		(2,867	)		(3,208	)		(1,817	)
Leasing commissions		(1,140	)		(889	)		(887	)		(873	)		(743	)
(Gain)/loss on extinguishment of debt		(112	)		(398	)		(81	)		22			1,444
(Gain)/loss on derivative instruments		(383	)		1,011			(181	)		287			497
Non-cash adjustment for marketable securities		825			—			—			—			—
Amortization of deferred interest costs		1,760			1,765			1,771			1,776			1,781
Amortization of deferred loan costs		1,153			1,058			1,080			1,039			1,040
Amortization of fair-value of debt acquired		(427	)		(497	)		(522	)		(476	)		(474	)
Amortization of debt discounts		259			141			137			179			208
Amortization of lease incentives		553			518			587			587			535
Depreciation included in general and administrative expense		392			386			376			363			359
Non-cash equity compensation		1,785			1,871			1,673			1,802			1,725
Straight line rents		(5,948	)		(4,159	)		(5,629	)		(6,113	)		(7,151	)
Share of unconsolidated partnership adjustments (3)		(9	)		42			146			423			433
Fair-value lease revenue		1,975			2,100			1,425			(696	)		(936	)

AFFO	$	38,277		$	42,977		$	40,609		$	30,332		$	30,038

AFFO per share - diluted	$	0.27		$	0.30		$	0.28		$	0.24		$	0.24

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

AFFO payout ratio		74.1	%		66.7	%		60.7	%		70.8	%		62.5	%

(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.

LOGO

RECONCILIATION OF EBITDA (1)

JUNE 30, 2011

(In thousands)


	Three Months Ended
	6/30/11		3/31/11		12/31/10		9/30/10		6/30/10
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	3,638	$	5,530	$	8,521	$	4,832	$	4,199
Interest expense		23,457		21,316		21,526		21,589		21,870
Interest expense - unconsolidated partnerships		614		645		234		557		464
Depreciation & amortization - consolidated entities		35,788		33,835		32,196		27,774		26,469
Depreciation & amortization - unconsolidated partnerships		944		921		1,014		835		694

EBITDA		64,441		62,247		63,491		55,587		53,696
Noncontrolling interests		68		107		178		104		95
Preferred dividends		4,241		4,241		4,241		4,241		4,241

Adjusted EBITDA	$	68,750	$	66,595	$	67,910	$	59,932	$	58,032

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

LOGO

RECONCILIATION OF NET OPERATING INCOME (1)

JUNE 30, 2011

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Net income	$	7,947		$	9,878		$	12,940		$	9,177		$	8,535
Equity in net loss of unconsolidated partnerships		466			648			958			308			100
Interest expense		23,457			21,316			21,526			21,589			21,870
Interest income		(79	)		(125	)		(46	)		(55	)		(51	)
(Gain)/loss on derivative instruments		(383	)		1,011			(181	)		287			497
Loss/(gain) on extinguishment of debt		249			43			(81	)		22			1,444

Income from operations		31,657			32,771			35,116			31,328			32,395
Depreciation and amortization		35,788			33,835			32,196			27,774			26,469
General and administrative		7,519			7,421			6,379			6,805			6,449
Acquisition related expenses		334			320			665			420			1,819

Consolidated net operating income	$	75,298		$	74,347		$	74,356		$	66,327		$	67,132

Revenues:
Rental	$	81,436		$	80,217		$	79,157		$	72,971		$	72,380
Tenant recoveries		24,821			24,581			23,580			22,723			20,273
Other income		541			747			2,299			39			259

Total revenues		106,798			105,545			105,036			95,733			92,912
Expenses:
Rental operations		21,162			20,517			20,935			19,998			17,077
Real estate taxes		10,338			10,681			9,745			9,408			8,703

Total operating expenses		31,500			31,198			30,680			29,406			25,780

Consolidated net operating income	$	75,298		$	74,347		$	74,356		$	66,327		$	67,132

Consolidated net operating income - cash basis (2)	$	72,485		$	73,130		$	72,390		$	59,960		$	59,718

Operating margin (3)		70.4	%		70.2	%		70.1	%		69.3	%		72.2	%
Operating expense recovery (4)		78.8	%		78.8	%		76.9	%		77.3	%		78.6	%

(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)).

LOGO

INTEREST EXPENSE

JUNE 30, 2011

(In thousands)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Mortgage notes payable	$	11,130		$	11,377		$	11,829		$	11,838		$	11,845
Secured term loan		—			—			—			—			222
Exchangeable senior notes		1,910			1,911			1,911			1,915			2,132
Unsecured senior notes		7,635			3,914			3,827			3,829			2,637
Unsecured line of credit		558			1,496			1,101			1,004			933
Derivative instruments		1,296			1,645			1,697			1,676			2,847

Interest expense - cash basis	$	22,529		$	20,343		$	20,365		$	20,262		$	20,616

Non cash interest expense
Amortization of fair-value of debt acquired		(427	)		(497	)		(522	)		(476	)		(474	)
Amortization of debt discount		259			141			137			179			208
Amortization of deferred loan costs		1,153			1,058			1,080			1,039			1,040
Amortization of deferred interest costs		1,760			1,765			1,771			1,776			1,781
Capitalized interest		(1,817	)		(1,494	)		(1,305	)		(1,191	)		(1,301	)

Interest expense	$	23,457		$	21,316		$	21,526		$	21,589		$	21,870

LOGO

COVERAGE RATIOS (1)

JUNE 30, 2011

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Interest coverage ratio
Adjusted EBITDA	$	68,750		$	66,595		$	67,910		$	59,932		$	58,032
Interest expense:
Interest expense		23,457			21,316			21,526			21,589			21,870
Interest expense - unconsolidated partnerships		614			645			234			557			464
Amortization of deferred interest costs		(1,760	)		(1,765	)		(1,771	)		(1,776	)		(1,781	)
Amortization of deferred loan costs		(1,153	)		(1,058	)		(1,080	)		(1,039	)		(1,040	)
Amortization of debt discount		(259	)		(141	)		(137	)		(179	)		(208	)
Amortization of fair-value of debt acquired		427			497			522			476			474

Total interest expense	$	21,326		$	19,494		$	19,294		$	19,628		$	19,779

Interest coverage ratio		3.2			3.4			3.5			3.1			2.9

Fixed charge coverage ratio
Adjusted EBITDA	$	68,750		$	66,595		$	67,910		$	59,932		$	58,032
Fixed charges:
Interest expense		23,457			21,316			21,526			21,589			21,870
Interest expense - unconsolidated partnerships		614			645			234			557			464
Amortization of deferred interest costs		(1,760	)		(1,765	)		(1,771	)		(1,776	)		(1,781	)
Amortization of deferred loan costs		(1,153	)		(1,058	)		(1,080	)		(1,039	)		(1,040	)
Amortization of debt discount		(259	)		(141	)		(137	)		(179	)		(208	)
Amortization of fair-value of debt acquired		427			497			522			476			474
Principal payments		1,771			1,825			1,912			1,868			1,834
Preferred dividends		4,241			4,241			4,241			4,241			4,241

Total fixed charges	$	27,338		$	25,560		$	25,447		$	25,737		$	25,854

Fixed charge coverage ratio		2.5			2.6			2.7			2.3			2.2

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

LOGO

DEBT SUMMARY

JUNE 30, 2011

(Dollars in thousands)


									Unamortized
	Stated			Effective			Principal		Premium /			Carrying		Maturity
Consolidated Debt:	Rate			Rate			Balance		(Discount)			Value		Date
Mortgage Notes Payable:
Center for Life Science \| Boston		7.75	%		7.75	%	$	343,896	$	—		$	343,896		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		63,261		3,075			66,336		12/18
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,430		144			6,574		09/12
Shady Grove Road		5.97	%		5.97	%		147,000		—			147,000		09/16
Sidney Street		7.23	%		5.11	%		26,907		545			27,452		06/12
Sorrento West		7.42	%		2.72	%		13,112		254			13,366		11/11
9865 Towne Centre Drive (1)		7.95	%		7.95	%		17,528		—			17,528		n/a	(1)
900 Uniqema Boulevard		8.61	%		5.61	%		915		54			969		05/15

Total / Weighted Average on Fixed Rate Mortgages		7.16	%		6.85	%		619,049		4,072			623,121
Fixed Rate Debt:
Unsecured Exchangeable Senior Notes Due 2026		4.50	%		6.45	%		19,800		(94	)		19,706		10/26
Unsecured Exchangeable Senior Notes Due 2030		3.75	%		3.75	%		180,000		—			180,000		01/30

Subtotal / Weighted Average on Unsecured Exchangeable Senior Notes		3.82	%		4.02	%		199,800		(94	)		199,706
Unsecured Senior Notes Due 2016		3.85	%		3.99	%		400,000		(2,424	)		397,576		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(2,330	)		247,670		04/20

Subtotal / Weighted Average on Unsecured Senior Notes		4.73	%		4.87	%		650,000		(4,754	)		645,246

Total / Weighted Average on Fixed Rate Debt		5.63	%		5.59	%		1,468,849		(776	)		1,468,073
Variable Rate Debt:
Unsecured Line of Credit (2)		1.29	%		1.29	%		121,200		—			121,200		07/15

Total / Weighted Average Variable Rate Debt		1.29	%		1.29	%		121,200		—			121,200

Total / Weighted Average Consolidated Debt		5.30	%		5.26	%	$	1,590,049	$	(776	)	$	1,589,273

Share of Unconsolidated Partnership Debt:
PREI Secured Loan (20%) (variable)		3.69	%		3.69	%	$	40,650	$	—		$	40,650		02/12
PREI Secured Construction Loan (20%) (variable)		1.70	%		1.70	%		41,128		—			41,128		08/11

Total / Weighted Average Share of Unconsolidated Partnership Debt		2.69	%		2.69	%		81,778		—			81,778

Total / Weighted Average Consolidated and Share of Unconsolidated Partnership Debt		5.17	%		5.13	%	$	1,671,827	$	(776	)	$	1,671,051

(1)	Subsequent to quarter end, the 9865 Towne Centre Drive note was voluntarily prepaid in full prior to its scheduled maturity.

(2)	Subsequent to quarter end, the company entered into a new $750 million unsecured line of credit which has a maturity date of July 13, 2015, replacing the previously existing $720 million unsecured line of credit.

LOGO

DEBT ANALYSIS

JUNE 30, 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	$	619,049		38.9	%		7.16	%		6.85	%
Unsecured debt		971,000		61.1	%		4.11	%		4.81	%

Total consolidated debt	$	1,590,049		100.0	%		5.30	%		5.60	%


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	$	1,468,849		92.4	%		5.63	%		5.59	%
Variable rate debt - hedged		121,200		7.6	%		1.29	%		5.80	%

Total consolidated debt	$	1,590,049		100.0	%		5.30	%		5.60	%

LOGO

DEBT MATURITIES

JUNE 30, 2011

(In thousands)

Weighted average debt maturity is 6.6 years for consolidated debt.


	2011		2012		2013		2014		2015		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	17,103	$	40,768	$	25,370	$	339,020	$	6,253	$	190,535	$	619,049
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		17,103		40,768		25,370		339,020		6,253		1,040,335		1,468,849
Variable rate debt:
Unsecured line of credit (3)		—		—		—		—		121,200		—		121,200

Total variable rate debt		—		—		—		—		121,200		—		121,200

Total consolidated debt	$	17,103	$	40,768	$	25,370	$	339,020	$	127,453	$	1,040,335	$	1,590,049

Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)	$	—	$	40,650	$	—	$	—	$	—	$	—	$	40,650
PREI secured construction loan (20%) (variable)		41,128		—		—		—		—		—		41,128

Share of total unconsolidated partnership debt	$	41,128	$	40,650	$	—	$	—	$	—	$	—	$	81,778

Total consolidated and share of unconsolidated partnership debt	$	58,231	$	81,418	$	25,370	$	339,020	$	127,453	$	1,040,335	$	1,671,827

(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)	Reflects maturity date of July 13, 2015 for the company’s new $750 million unsecured line of credit entered into subsequent to quarter end, which replaces the company’s previously existing $720 million unsecured line of credit.

LOGO

COMMON AND PREFERRED STOCK DATA

JUNE 30, 2011

(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Earnings per share
Weighted average common shares outstanding		129,858			129,772			129,600			112,911			109,707
Weighted average OP and LTIP units outstanding		2,983			2,993			3,001			3,001			3,019
Dilutive effect of restricted stock		—			—			—			—			1,230

Diluted common shares - EPS		132,841			132,765			132,601			115,912			113,956

Funds from operations
Weighted average common shares outstanding		129,858			129,772			129,600			112,911			109,707
Weighted average OP and LTIP units outstanding		2,983			2,993			3,001			3,001			3,019
Dilutive effect of restricted stock		1,395			1,488			1,305			1,228			1,230
Dilutive effect of exchangeable senior notes due 2030		10,018			9,914			9,914			9,914			9,914

Diluted common shares - FFO		144,254			144,167			143,820			127,054			123,870

Closing common shares, OP and LTIP units outstanding		134,240			134,229			134,048			133,832			116,579
Preferred shares outstanding		9,200			9,200			9,200			9,200			9,200
High price	$	20.86		$	19.19		$	19.50		$	19.25		$	19.50
Low price	$	18.14		$	16.72		$	16.64		$	14.79		$	15.04
Average closing price	$	19.31		$	17.92		$	18.21		$	17.52		$	17.39
Closing price	$	19.24		$	19.02		$	18.65		$	17.92		$	16.09
Dividends per share - annualized	$	0.80		$	0.80		$	0.68		$	0.68		$	0.60
Closing dividend yield - annualized		4.2	%		4.2	%		3.6	%		3.8	%		3.7	%

DIVIDENDS PER SHARE

	6/30/11			3/31/11			12/31/10			9/30/10			6/30/10
Common Stock - BMR
Amount	$	0.20		$	0.20		$	0.17		$	0.17		$	0.15
Declared		June 15, 2011			March 14, 2011			December 15, 2010			September 15, 2010			June 15, 2010
Record		June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010
Paid		July 15, 2011			April 15, 2011			January 17, 2011			October 15, 2010			July 15, 2010
Preferred Stock - BMR PrA
Amount	$	0.46094		$	0.46094		$	0.46094		$	0.46094		$	0.46094
Declared		June 15, 2011			March 14, 2011			December 15, 2010			September 15, 2010			June 15, 2010
Record		June 30, 2011			March 31, 2011			December 31, 2010			September 30, 2010			June 30, 2010
Paid		July 15, 2011			April 15, 2011			January 17, 2011			October 15, 2010			July 15, 2010

LOGO

MARKET SUMMARY

JUNE 30, 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		2,296,700	$	127,470		34.0	%	$	55.50	$	134,246		30.5	%	$	58.45
San Francisco		1,916,994		59,437		15.8	%		31.01		75,014		17.1	%		39.13
Maryland		1,512,126		57,224		15.3	%		37.84		72,601		16.5	%		48.01
San Diego		1,732,143		55,618		14.8	%		32.11		69,101		15.7	%		39.89
New York / New Jersey		1,233,314		40,854		10.9	%		33.13		51,030		11.6	%		41.38
Pennsylvania		651,740		14,737		3.9	%		22.61		15,944		3.6	%		24.46
Seattle		197,473		8,720		2.3	%		44.16		9,858		2.2	%		49.92
University Related - Other		381,390		11,103		3.0	%		29.11		12,136		2.8	%		31.82

Total portfolio / weighted average		9,921,880	$	375,163		100.0	%	$	37.81	$	439,930		100.0	%	$	44.34

(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.

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2011


						Feet		Percent of			Leased
			Property			Rentable		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Square		Sq Ft			Feet		6/30/11			3/31/11
	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	%		689,534		97.9	%		95.6	%
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			447Stalls		n/a			n/a
8	Fresh Pond Research Park	April 5, 2005	Lease Up		6		90,702		0.8	%		19,453		21.4	%		21.4	%
9	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		3.1	%		344,097		98.5	%		98.5	%
10	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		2.7	%		298,871		98.7	%		98.7	%
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	%		46.0	%

	Total Boston				18		2,009,816		18.3	%		1,857,288		92.4	%		91.6	%

	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	Lease Up		2		201,567		1.8	%		176,616		87.6	%		92.6	%
17	Bridgeview Technology Park II	March 16, 2005	Lease Up		1		50,400		0.4	%		28,714		57.0	%		50.0	%
18	Dumbarton Circle	May 27, 2005	Stabilized		3		44,000		0.4	%		44,000		100.0	%		100.0	%
19	Forbes Boulevard	September 5, 2007	Lease Up		1		240,000		2.1	%		121,008		50.4	%		50.4	%
20	Gateway Business Park	October 26, 2010	Stabilized		7		284,013		2.5	%		284,013		100.0	%		100.0	%
21	Industrial Road	August 17, 2004	Lease Up		1		171,965		1.5	%		144,105		83.8	%		83.8	%
22	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.8	%		49,915		56.8	%		56.8	%
23	Pacific Industrial Center	July 11, 2006	Lease Up		1		305,026		2.7	%		—		—			—
24	Pacific Research Center North	July 11, 2006	Lease Up		6		661,245		5.8	%		333,641		50.5	%		50.5	%
25	Pacific Research Center South	July 11, 2006	Lease Up		3		423,246		3.7	%		263,543		62.3	%		—
26	Science Center at Oyster Point	October 26, 2010	Stabilized		2		204,887		1.8	%		204,887		100.0	%		100.0	%

	Total San Francisco				33		2,985,734		26.2	%		1,916,994		64.2	%		52.9	%

	Maryland
27	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.7	%		77,225		100.0	%		100.0	%
28	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.6	%		289,912		100.0	%		100.0	%
29	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.5	%		51,181		100.0	%		100.0	%
30	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		1.1	%		122,600		100.0	%		100.0	%
31	9708-9714 Medical Center Drive	May 3, 2010	Redevelopment		3		92,574		0.8	%		—		—			100.0	%
32	1701 / 1711 Research Blvd	May 9, 2011	Redevelopment		1		104,743		0.9	%		104,743		100.0	%		n/a
33	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		5.6	%		635,058		100.0	%		100.0	%
34	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.8	%		91,592		100.0	%		100.0	%
35	50 West Watkins Mill Road	May 7, 2010	Stabilized		1		57,410		0.5	%		57,410		100.0	%		100.0	%
36	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.7	%		82,405		100.0	%		100.0	%

	Total Maryland				16		1,604,700		14.2	%		1,512,126		94.2	%		100.0	%

	San Diego
37	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
38	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.5	%		61,286		100.0	%		100.0	%
39	4570 Executive Drive	September 17, 2010	Stabilized		1		125,219		1.1	%		125,219		100.0	%		100.0	%
40	4775 / 4785 Executive Drive	July 15, 2010	Lease Up		1		62,896		0.6	%		—		—			—
41	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.3	%		28,704		100.0	%		100.0	%
42	Gazelle Court	March 30, 2010	Development		1		176,000		1.6	%		176,000		100.0	%		100.0	%
43	3525 John Hopkins Court	December 28, 2010	Stabilized		1		48,306		0.4	%		48,306		100.0	%		100.0	%
44	3545-3575 John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.6	%		28,651		39.7	%		29.7	%

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2011


						Feet		Percent of			Leased
			Property			Rentable		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Square		Sq Ft			Feet		6/30/11			3/31/11
	San Diego (Continued)
45	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		1.7	%		196,557		100.0	%		100.0	%
46	6828 Nancy Ridge Drive	April 21, 2005	Stabilized		1		42,138		0.4	%		42,138		100.0	%		100.0	%
47	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.6	%		66,745		100.0	%		100.0	%
48	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.6	%		59,731		87.8	%		87.8	%
49	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		0.9	%		73,432		69.7	%		83.8	%
50	10240 Science Center Drive	September 23, 2010	Stabilized		1		49,347		0.4	%		49,347		100.0	%		100.0	%
51	10255 Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.5	%		53,740		100.0	%		100.0	%
52	Sorrento Plaza	December 18, 2010	Stabilized		2		31,184		0.3	%		31,184		100.0	%		100.0	%
53	Sorrento Valley Boulevard	December 7, 2006	Stabilized		1		54,924		0.5	%		54,924		100.0	%		100.0	%
54	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.3	%		35,940		100.0	%		100.0	%
55	Sorrento West	October 15, 2010	Stabilized		8		163,799		1.4	%		161,037		98.3	%		98.3	%
56	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.7	%		81,204		100.0	%		100.0	%
57	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.8	%		94,866		100.0	%		100.0	%
58	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.9	%		104,870		100.0	%		100.0	%
59	Waples Street	March 1, 2005	Stabilized		1		50,055		0.4	%		50,055		100.0	%		100.0	%

	Total San Diego				36		1,808,678		15.8	%		1,659,280		91.7	%		92.2	%

	New York / New Jersey
60	Ardsley Park	June 23, 2011	Redevelopment		5		160,500		1.4	%		160,500		100.0	%		n/a
61	Graphics Drive	March 17, 2005	Stabilized		1		72,300		0.6	%		64,960		90.0	%		90.0	%
62	Landmark at Eastview	August 12, 2004	Lease Up		5		759,910		6.7	%		647,334		85.2	%		87.4	%
63	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		3.2	%		360,520		100.0	%		100.0	%
64	One Research Way	May 31, 2006	Lease Up		1		49,421		0.4	%		—		—			—

	Total New York / New Jersey				15		1,402,651		12.3	%		1,233,314		87.9	%		87.7	%

	Pennsylvania
65	Eisenhower Road	August 13, 2004	Stabilized		1		27,750		0.2	%		27,750		100.0	%		59.7	%
66	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.6	%		71,500		100.0	%		100.0	%
67	King of Prussia	August 11, 2004	Stabilized		5		374,387		3.3	%		374,387		100.0	%		87.7	%
68	Phoenixville Pike	May 5, 2005	Stabilized		1		104,400		0.9	%		99,878		95.7	%		95.7	%
69	Spring Mill Drive	July 20, 2006	Lease Up		1		76,561		0.7	%		66,932		87.4	%		87.4	%
70	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
71	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.5	%		—		—			100.0	%

	Total Pennsylvania				11		725,712		6.3	%		651,740		89.8	%		90.0	%

	Seattle
72	Elliott Avenue	August 24, 2004	Lease Up		1		154,341		1.4	%		—		—			—
73	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
74	530 Fairview Avenue	January 12, 2006	Lease Up		1		96,188		0.8	%		81,632		84.9	%		84.9	%
75	Monte Villa Parkway	August 17, 2004	Stabilized		1		51,000		0.5	%		51,000		100.0	%		100.0	%
76	217th Place	November 21, 2006	Lease Up		1		67,799		0.6	%		42,628		62.9	%		62.9	%

	Total Seattle				5		391,541		3.5	%		197,473		50.4	%		50.4	%

	University Related - Other
77	Lucent Drive	May 31, 2005	Stabilized		1		21,500		0.2	%		21,500		100.0	%		100.0	%
78	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.5	%		61,603		100.0	%		100.0	%
79	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.4	%		39,691		82.0	%		82.0	%
80	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.7	%		78,023		100.0	%		100.0	%
81	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.3	%		149,984		100.0	%		100.0	%
82	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				144		11,318,925		100.0	%		9,409,605		83.1	%		80.3	%

(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.

LOGO

REDEVELOPMENT AND DEVELOPMENT

JUNE 30, 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)
REDEVELOPMENT:
9708-9714 Medical Center Drive	Maryland		92,574		—			—	$	18,100	$	29,000	Q1 2012
Ardsley Park	New York / New Jersey		160,500		100.0	%		—		18,000		36,000	Q2 2013
1701 / 1711 Research Blvd	Maryland		104,743		100.0	%		—		12,000		25,700	TBD

Total / weighted average			357,817		74.1	%		—	$	48,100	$	90,700

DEVELOPMENT:
Gazelle Court	San Diego		176,000		100.0	%		—	$	59,400	$	70,000	Q3 2011

Total / weighted average			176,000		100.0	%		—	$	59,400	$	70,000

DEVELOPMENT POTENTIAL:


Market	Estimated Developable Square Feet
Boston		83,530
San Francisco		1,606,145
Maryland		674,000
San Diego		103,000
New York / New Jersey		823,540
Pennsylvania		102,722
Seattle		114,000

Total		3,506,937

(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.

LOGO

PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS

JUNE 30, 2011

(Dollars in thousands)


	Property	Acquisition Date		Property Status (1)			Buildings			Rentable Square Feet			Leased Square Feet		Percent Leased						Market
	Property	Acquisition Date		Property Status (1)			Buildings			Rentable Square Feet			Leased Square Feet		6/30/11			3/31/11			Market
	McKellar Court
1	McKellar Court		September 30, 2004		Stabilized			1			72,863			72,863		100.0	%		100.0	%		San Diego
	PREI
2	320 Bent Street		April 4, 2007		Lease Up			1			184,405			145,304		78.8	%		78.8	%		Boston
3	301 Binney Street		April 4, 2007		Lease Up			1			417,290			294,108		70.5	%		65.6	%		Boston
4	301 Binney Garage		April 4, 2007		Lease Up			1			503 Stalls			n/a		n/a			n/a			Boston
5	650 E. Kendall Street (Kendall B)		April 4, 2007		Lease Up			1			280,000			—		—			—			Boston
6	350 E. Kendall Street Garage (Kendall F)		April 4, 2007		Stabilized			1			1,409 Stalls			n/a		n/a			n/a			Boston
7	Kendall Crossing Apartments		April 4, 2007		Stabilized			1			37 Apts.			n/a		n/a			n/a			Boston

				McKellar Court (2)			PREI			Total
	Total assets			$	14,710		$	643,137		$	657,847
	Total debt (3)				10,280			408,890			419,170
	Current annualized base rent				1,882			25,815			27,697
	BioMed’s net investment in
	unconsolidated partnerships			$	12,440		$	42,873		$	55,313
	BioMed’s pro rata share of debt				—			81,778			81,778
	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.

LOGO

LEASE EXPIRATIONS

JUNE 30, 2011

Weighted average remaining lease term is 8.2 years for the consolidated portfolio and 8.1 years for the total portfolio.


						Current (1)							Expiration (2)
Expiration	Leased Square Feet		Percent of Leased Square Feet			Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet
						(In thousands)							(In thousands)
Month-to-month		18,799		0.2	%	$	361		0.1	%	$	19.20	$	364		0.1	%	$	19.36
Third quarter 2011		164,039		1.7	%		4,859		1.3	%		29.62		4,859		1.1	%		29.62
Fourth quarter 2011		13,956		0.1	%		331		0.1	%		23.72		331		0.1	%		23.72

2011		177,995		1.8	%		5,190		1.4	%		29.16		5,190		1.2	%		29.16
2012		491,365		5.0	%		20,874		5.6	%		42.48		21,413		4.9	%		43.58
2013		640,921		6.5	%		15,790		4.2	%		24.64		16,861		3.8	%		26.31
2014		787,483		7.9	%		21,995		5.9	%		27.93		23,315		5.3	%		29.61
2015		368,723		3.7	%		11,773		3.1	%		31.93		12,839		2.9	%		34.82
2016		1,401,086		14.1	%		53,778		14.3	%		38.38		58,997		13.4	%		42.11
2017		127,351		1.3	%		4,007		1.1	%		31.46		4,751		1.1	%		37.31
2018		1,164,197		11.7	%		51,779		13.8	%		44.48		57,936		13.2	%		49.76
2019		290,589		2.9	%		8,848		2.4	%		30.45		9,662		2.2	%		33.25
2020		400,771		4.0	%		16,140		4.3	%		40.27		14,522		3.3	%		36.24
Thereafter		4,052,600		40.9	%		164,628		43.8	%		40.62		214,080		48.6	%		52.83

Total / weighted average		9,921,880		100.0	%	$	375,163		100.0	%	$	37.81	$	439,930		100.0	%	$	44.34

(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.

LOGO

EXPIRATIONS BY MARKET

JUNE 30, 2011


	Leased Square Feet
Expiration	Boston		San Francisco		Maryland		San Diego		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		—		2,849		15,950		—		—		—		18,799
2011		3,000		—		104,743		46,823		9,567		9,360		4,502		—		177,995
2012		21,705		194,161		—		184,363		55,546		13,377		22,213		—		491,365
2013		12,972		194,554		—		235,566		136,609		48,326		3,962		8,932		640,921
2014		28,019		55,098		100,310		124,898		—		407,961		19,108		52,089		787,483
2015		28,061		80,736		—		208,681		—		34,753		—		16,492		368,723
2016		650,796		307,069		—		19,890		34,395		31,166		68,160		289,610		1,401,086
2017		—		—		51,181		30,776		45,394		—		—		—		127,351
2018		807,347		121,590		—		178,365		—		—		42,628		14,267		1,164,197
2019		23,115		61,757		168,817		—		—		—		36,900		—		290,589
2020		111,144		49,915		122,600		72,863		44,249		—		—		—		400,771
Thereafter		610,541		852,114		964,475		627,069		891,604		106,797		—		—		4,052,600

Total		2,296,700		1,916,994		1,512,126		1,732,143		1,233,314		651,740		197,473		381,390		9,921,880

LOGO

10 LARGEST TENANTS

JUNE 30, 2011

BioMed’s properties were leased to 166 tenants.


	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1)		Annualized Base Rent per Leased Sq Ft Current		Percent of Annualized Base Rent Current Total Portfolio			Lease Expiration
							(In thousands)
1	Human Genome Sciences, Inc.		924,970		9.3	%	$	43,611	$	47.15		11.6	%		June 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		6.9	%		33,588		49.01		9.0	%		Multiple
3	Elan Pharmaceuticals, Inc. (3)		419,628		4.2	%		26,452		63.04		7.1	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		3.7	%		25,543		70.49		6.8	%		July 2023
5	Regeneron Pharmaceuticals, Inc. (4)		552,163		5.6	%		22,838		41.36		6.1	%		Multiple
6	Sanofi (5)		418,003		4.2	%		19,469		46.58		5.2	%		Multiple
7	Ironwood Pharmaceuticals, Inc. (6)		193,986		2.0	%		10,048		51.80		2.7	%		February 2016
8	Merck & Co., Inc. (7)		214,946		2.2	%		10,017		46.60		2.7	%		Multiple
9	Children’s Hospital Corporation		150,215		1.5	%		9,303		61.93		2.5	%		May 2023
10	Janssen Biotech, Inc. (Johnson & Johnson) (8)		374,387		3.8	%		8,743		23.35		2.3	%		April 2014

	Total / weighted average (9)		4,295,948		43.4	%	$	209,612	$	48.79		56.0	%

(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)	6,568 square feet expire September 2011, and 545,595 square feet expire July 2024.

(5)	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)	Formerly Centocor Ortho Biotech Inc.

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

LOGO

SAME PROPERTY ANALYSIS

JUNE 30, 2011

(Dollars in thousands)


	Three Months Ended
	6/30/11			6/30/10			Percent Change
Total Same Property Portfolio (1)
Number of properties		71			71
Rentable square feet		10,159,148			10,159,148
Percent of total portfolio		82.8	%		92.0	%
Percent leased		82.8	%		79.9	%
Revenues:
Rental	$	75,669		$	76,842			(1.5	%)
Tenant recoveries		26,080			23,990			8.7	%

Total revenues		101,749			100,832			0.9	%

Expenses:
Rental operations		20,826			19,014			9.5	%
Real estate taxes		10,042			9,663			3.9	%

Total expenses		30,868			28,677			7.6	%

Same property net operating income (2)	$	70,881		$	72,155			(1.8	%)

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(2,745	)		(8,338	)		(67.1	%)

Same property net operating income - cash basis (2) (3)	$	68,136		$	63,817			6.8	%

Rental revenue - cash basis (3)	$	72,180		$	68,203			5.8	%

(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.

LOGO

ACQUISITIONS

JUNE 30, 2011


Acquisitions since August 11, 2004:			Number of Properties		Rentable Square 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				3		265,243		40,530

Total acquisitions since August 11, 2004				90		10,742,375	$	3,865,261


Acquisitions detail for 2011: Property	Market	Closing Date	Rentable Square Feet (1)		Investment		Percent Leased at Acquisition
					(In thousands)
First Quarter 2011
None
Second Quarter 2011
1701 / 1711 Research Blvd (3)	Maryland	May 9, 2011		104,743	$	17,500		100.0	%
450 Kendall Street (Kendall G) (4)	Boston	May 31, 2011		—		5,030		n/a
Ardsley Park (5)	New York /New Jersey	June 23, 2011		160,500		18,000		100.0	%

Second quarter total				265,243	$	40,530		100.0	%

Total 2011 acquisitions				265,243	$	40,530		100.0	%

(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)	1701 / 1711 Research Boulevard consists of a single building comprising 104,743 square feet of laboratory and office space and approximately 145,000 square feet of development potential.

(4)	Includes approximately 33,500 square feet of development potential.

(5)

The Ardsley Park acquisition is comprised of 160,500 square feet of laboratory and office space and approximately 500,000 square feet of future redevelopment and development potential. Concurrent with the acquisition, the company announced the signing of a new 15 year lease with Acorda Therapeutics, Inc. for approximately 138,200 square feet of laboratory and office space. Pursuant to the lease agreement, the company will proceed on an extensive renovation of the property over the next twelve months, bringing the estimated total investment in the property upon lease commencement to approximately $36.0 million.

LOGO

LEASING ACTIVITY (1)

JUNE 30, 2011


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft
Leased Square Feet as of March 31, 2011		9,530,718
Acquisitions		127,075		$	28.31
Expirations		(308,062	)		21.06
Renewals, amendments, and extensions		102,413			25.03
New leases		469,736			19.00

Leased Square Feet as of June 30, 2011		9,921,880

Pre-leased Square Feet as of March 31, 2011		12,922
Pre-leased new leases		30,370			28.20

Pre-leased Square Feet as of June 30, 2011		43,292

Gross Leasing Activity - Second Quarter 2011		602,519			20.49

Net Absorption		264,087		$	18.94

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

LOGO

TENANT IMPROVEMENTS AND LEASING COMMISSIONS

JUNE 30, 2011


	Three Months Ended
	6/30/11		3/31/11		12/31/10		9/30/10		6/30/10
Renewals, Amendments, and Extensions (1)
Number of renewals		8		12		5		4		3
Square feet		102,413		230,780		167,310		141,310		33,468
Tenant improvement costs per square foot (2)	$	2.42	$	1.05	$	3.07	$	—	$	29.88
Leasing commission costs per square foot (2)		5.52		1.73		5.06		6.36		3.33

Total tenant improvement and leasing commission costs psf	$	7.94	$	2.78	$	8.13	$	6.36	$	33.21

New Leases (3)
Number of leases		12		15		8		10		9
Square feet		500,106		232,466		161,876		90,351		126,407
Tenant improvement costs per square foot (2)	$	67.03	$	23.62	$	88.54	$	43.06	$	64.22
Leasing commission costs per square foot (2)		13.18		8.61		13.05		6.76		8.82

Total tenant improvement and leasing commission costs psf	$	80.21	$	32.23	$	101.59	$	49.82	$	73.03

Total
Number of renewals/leases		20		27		13		14		12
Square feet		602,519		463,246		329,186		231,661		159,875
Tenant improvement costs per square foot (2)	$	56.05	$	12.37	$	45.10	$	16.79	$	57.03
Leasing commission costs per square foot (2)		11.88		5.18		8.99		6.52		7.67

Total tenant improvement and leasing commission costs psf	$	67.93	$	17.55	$	54.09	$	23.31	$	64.70

(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.

LOGO

NON-GAAP FINANCIAL MEASURE DEFINITIONS

JUNE 30, 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.

LOGO

PROPERTY DEFINITIONS

JUNE 30, 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

Attached files

Stock widget

Investing forum

BioMed Realty Trust Inc Reports

Also read