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

Attached files

file	filename
8-K - FORM 8-K - BioMed Realty Trust Inc	d390725d8k.htm
EX-99.1 - PRESS RELEASE ISSUED BY BIOMED REALTY TRUST, INC. ON AUGUST 1, 2012 - BioMed Realty Trust Inc	d390725dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

JUNE 30, 2012


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

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TABLE OF CONTENTS

JUNE 30, 2012


	Page			Page
Second Quarter Highlights		3	Common and Preferred Stock Data		20
Investor Information		4	Market Summary		21
Equity Research Coverage		5	Property Listing - Consolidated Portfolio		22-23
Financial and Operating Highlights		6	Redevelopment, Pre-development
Capitalization Summary		7	and Other Capital Improvements		24
Portfolio Summary		8	Property Listing - Unconsolidated Partnerships
Consolidated Balance Sheets		9	and Development Potential		25
Consolidated Statements of Operations		10	Lease Expirations		26
Balance Sheet / Operations Statement Detail		11	Expirations by Market		27
FFO		12	10 Largest Tenants		28
AFFO		13	Same Property Analysis		29
Reconciliation of EBITDA		14	Acquisitions / Dispositions		30
Reconciliation of Net Operating Income		15	Leasing Activity		31
Interest Expense		16	Tenant Improvements, Leasing Commissions,
Coverage Ratios		17	and Tenant Concessions		32
Debt Summary		18	Non-GAAP Financial Measure Definitions		33
Debt Maturities		19	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 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and 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; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, developments and other investments, and the ability to refinance indebtedness as it comes due; failure to maintain the company’s investment grade credit ratings with the ratings agencies; failure to manage effectively the company’s growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with downturns in foreign, domestic and local economies, changes in interest rates and foreign currency exchange rates, and volatility in the securities markets; ownership of properties outside of the United States that subject the company to different and potentially greater risks than those associated with the company’s domestic operations; risks associated with the company’s investments in loans, including borrower defaults and potential principal losses; potential liability for uninsured losses and environmental contamination; risks associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company 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 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.

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SECOND QUARTER HIGHLIGHTS

JUNE 30, 2012

•

Increased core funds from operations (CFFO) per share for the quarter by 10.3% to $0.32 per diluted share, as compared to $0.29 per diluted share in the second quarter of 2011, excluding the impact of acquisition-related expenses. Funds from operations (FFO) per share calculated in accordance with standards established by NAREIT was $0.24 per diluted share, inclusive of $12.2 million of acquisition-related expenses ($0.08 per diluted share).

•

Increased adjusted funds from operations (AFFO) per share for the quarter by 22.2% to $0.33 per diluted share, as compared to $0.27 per diluted share in the second quarter of 2011.

•

Reported a net loss available to common stockholders for the second quarter of $8.7 million, or $0.06 per diluted share, which includes acquisition-related expenses.

•

Same property net operating income on a cash basis increased for the period by 6.4% and the same property leased percentage increased by 460 basis points as compared to the same period in 2011.

•

Generated total revenues for the quarter of $124.8 million, up 17.3% from $106.4 million in the same period in 2011 and the highest in the company’s history. Rental revenues for the quarter increased by 18.0% to $95.7 million from $81.1 million in the same period in 2011, the highest in the company’s history for the tenth consecutive quarter.

•

Increased the current operating portfolio to approximately 91.8% leased at quarter end, on a weighted-average basis, as the result of executing 23 leasing transactions representing approximately 350,800 square feet, comprised of:

•

16 new leases totaling approximately 263,400 square feet, including:

•

a new 126,065 square foot lease with AVEO Pharmaceuticals, Inc. at 650 East Kendall Street in Cambridge, Massachusetts, which is owned through a joint venture with Prudential Real Estate Investors ((PREI^®);) and

•

a new 60,416 square foot lease with Depomed, Inc. at the company’s multi-tenant Pacific Research Center campus in Newark, California.

•

Seven lease renewals totaling approximately 87,400 square feet.

•

Acquired Granta Park in Cambridge, United Kingdom, comprising eleven buildings and a total of approximately 472,200 square feet of space and approximately 138,400 square feet of development and expansion rights for approximately $196.0 million, excluding transaction costs. The property was fully leased at acquisition.

•

Acquired the Summers Ridge property, comprising approximately 28 adjacent acres in San Diego, California for approximately $47 million. Concurrently, the company entered into a long-term ground lease for the entire site with Shire Regenerative Medicine (formerly Advanced BioHealing, Inc.), a subsidiary of Shire plc.

•

Completed a public offering of $250 million of unsecured 4.25% Senior Notes due 2022, issued at 99.126% of the principal amount to yield 4.358% to maturity.

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 13.1 million rentable square feet. The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, San Diego, Maryland, 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.

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INVESTOR INFORMATION

JUNE 30, 2012


Company Information
Corporate Headquarters	Trading Symbols	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	Computershare Shareowner Services LLC	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	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. Lubushkin	Kevin M. Simonsen	Vice President,
	Chief Financial Officer	Vice President,	Finance
M. Faye Wilson		Real Estate Counsel

Tentative Schedule for Quarterly Results
Third Quarter 2012	November 1, 2012
Fourth Quarter 2012	February 14, 2013
First Quarter 2013	May 2, 2013
Second Quarter 2013	August 1, 2013

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EQUITY RESEARCH COVERAGE

JUNE 30, 2012


BMO Capital Markets	Richard C. Anderson / Joshua Patinkin	(212) 885-4180 / (212) 883-5102	richard.anderson@bmo.com / joshua.patinkin@bmo.com

Cantor Fitzgerald	David Toti / Evan Smith	(212) 915-1219 / (212) 915-1220	dtoti@cantor.com / evan.smith@cantor.com

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

Green Street Advisors	John Stewart / John Hornbeak	(949) 640-8780	jstewart@greenst.com / jhornbeak@greenst.com

Jefferies & Co.	Omotayo Okusanya	(212) 336-7076	tokusanya@jefferies.com

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

Macquarie Capital (USA)	Robert 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

Robert W. Baird & Co.	Analyst Coverage in Transition

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

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FINANCIAL AND OPERATING HIGHLIGHTS

JUNE 30, 2012

(In thousands, except per share and ratio amounts)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Selected Operating Data
Total revenues	$	124,848		$	120,012		$	111,958		$	114,639		$	106,409
EBITDA (1)		63,302			66,485			71,980			65,530			64,362
Adjusted EBITDA (1)		79,571			75,291			72,011			73,640			69,830
Net operating income - cash basis (2)		86,800			83,432			75,140			72,484			71,861
General and administrative expense		8,576			8,614			9,169			7,682			6,694
Acquisition-related expenses		12,245			633			309			136			334
Interest expense, net		23,825			22,219			21,725			22,887			23,378
Capitalized interest		2,090			2,360			2,260			1,996			1,817
Operating margin (3)		70.3	%		69.4	%		71.2	%		69.2	%		70.4	%
General and administrative expense / Total revenues		6.9	%		7.2	%		8.2	%		6.7	%		6.3	%
Net (loss)/income available to common stockholders		(8,713	)		(1,339	)		12,058			4,765			3,638
Net (loss)/income per share - diluted	$	(0.06	)	$	(0.01	)	$	0.08		$	0.03		$	0.03
FFO - diluted (4)		40,680			50,197			46,880			43,778			42,114
FFO per share - diluted (4)	$	0.24		$	0.30		$	0.30		$	0.30		$	0.29
CFFO per share - diluted (4)	$	0.32		$	0.30		$	0.30		$	0.30		$	0.29
AFFO - diluted (4)		55,632			50,671			44,247			42,683			38,611
AFFO per share - diluted (4)	$	0.33		$	0.30		$	0.28		$	0.30		$	0.27
Dividend per share - common stock	$	0.215		$	0.215		$	0.20		$	0.20		$	0.20
CFFO payout ratio (5)		67.2	%		71.7	%		66.7	%		66.7	%		69.0	%
AFFO payout ratio (5)		65.2	%		71.7	%		71.4	%		66.7	%		74.1	%

(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 14.

(2)	For definitions and discussion of net operating income - cash basis, see page 15.

(3)	See page 15 for detail.

(4)	For definitions and discussion of FFO, CFFO and AFFO, see page 33. For a quantitative reconciliation of the differences between FFO, CFFO, AFFO and net income available to common stockholders, see pages 12 and 13.

(5)	See page 12 for detail of the CFFO payout ratio and page 13 for detail of the AFFO payout ratio.

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CAPITALIZATION SUMMARY

JUNE 30, 2012

(In thousands, except per share and ratio amounts)


		6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Capitalization:
Total common shares outstanding			154,184			154,163			154,101			131,265			131,260
Total units outstanding (1)			2,943			2,957			2,980			2,980			2,980

Total common shares and units outstanding			157,127			157,120			157,081			134,245			134,240
Common share price at quarter end		$	18.68		$	18.98		$	18.08		$	16.57		$	19.24

Equity value at quarter end		$	2,935,122		$	2,982,134		$	2,840,033		$	2,224,441		$	2,582,770
Preferred stock at liquidation value			198,000			198,000			198,000			198,000			230,000
Consolidated debt			2,106,021			1,812,258			1,682,578			1,665,661			1,590,049

Total capitalization		$	5,239,143		$	4,992,392		$	4,720,611		$	4,088,102		$	4,402,819

Debt / Total assets			43.9	%		39.9	%		38.0	%		41.3	%		39.8	%
Debt / Total gross assets			39.6	%		36.0	%		34.5	%		37.4	%		36.2	%
Debt / Total capitalization			40.2	%		36.3	%		35.6	%		40.7	%		36.1	%
Coverage ratios (2):
Debt / Adjusted EBITDA			6.6			6.0			5.8			5.7			5.7
Interest coverage			3.8			3.8			3.7			3.5			3.3
Fixed charge coverage			3.0			3.0			2.8			2.8			2.6
Total consolidated debt:
Secured debt / Total gross assets			10.3	%		11.1	%		12.0	%		13.6	%		14.2	%
Floating rate debt / Total debt			22.7	%		23.5	%		15.9	%		13.0	%		7.6	%
Adjusted floating rate debt / Total debt (3)			13.2	%		12.5	%		—			—			—
Unencumbered real estate / Total real estate			77.0	%		75.2	%		73.7	%		69.9	%		69.0	%
Unencumbered CABR / Total CABR (4)			79.3	%		77.9	%		73.0	%		71.4	%		70.5	%
Unsecured line of credit capacity		$	658,590		$	723,090		$	481,090		$	526,100		$	591,000

Bond covenants (5):	Requirements
Total outstanding debt / Total assets	Must be £ 60%		41.2	%		37.2	%		35.7	%		38.5	%		37.4	%
Secured debt / Total assets	Must be £ 40%		10.7	%		11.5	%		12.5	%		13.9	%		14.6	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		2.9			3.2			3.1			2.9			2.8
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		258	%		299	%		323	%		293	%		312	%
Unencumbered assets / Unsecured debt - Notes due 2016, Notes due 2022	Must be ³ 150%		255	%		296	%		320	%		287	%		307	%

(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 17 for the calculation of interest and fixed charge coverage ratios. See page 14 for calculation of Adjusted EBITDA.

(3)	Includes effect of interest rate swaps on the Company’s unsecured senior term loan facility. See page 18 for more information.

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

(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 and unsecured senior notes due 2022, which are included as exhibits to the Company’s Forms 8-K filed with the SEC on April 30, 2010, March 30, 2011, and June 28, 2012, respectively. The covenants for the unsecured senior notes due 2020, unsecured senior notes due 2016, and unsecured senior notes due 2022 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 and unsecured senior notes due 2022 excludes such investments in unconsolidated partnerships.

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PORTFOLIO SUMMARY

JUNE 30, 2012


	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased % (1)
	(In thousands)
Stabilized (2)	$	3,205,676		105		7,740,674		99.6	%
Lease up (2)		1,041,599		44		3,278,452		67.6	%

Current operating portfolio		4,247,275		149		11,019,126		91.8	%
Long-term lease up (3)		335,078		10		1,389,517		64.3	%

Total operating portfolio	$	4,582,353		159		12,408,643		89.8	%


	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased % (1)
	(In thousands)
Redevelopment (4)	$	45,024		4		196,867		33.6	%
Unconsolidated partnership portfolio (5)		32,562		3		352,863		56.4	%
Development potential (4)		204,798		—		3,952,000		—

Total portfolio	$	4,864,737		166		16,910,373

(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.

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CONSOLIDATED BALANCE SHEETS

JUNE 30, 2012

(In thousands)


	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Assets
Investments in real estate, net	$	4,309,421		$	4,037,928		$	3,950,246		$	3,576,304		$	3,584,259
Investments in unconsolidated partnerships		32,562			32,901			33,389			67,383			55,313
Cash and cash equivalents		17,385			13,336			16,411			16,351			12,033
Accounts receivable, net		4,241			4,426			5,141			7,542			2,486
Accrued straight-line rents, net		139,346			134,371			130,582			123,564			116,896
Deferred leasing costs, net		185,354			164,002			157,255			116,811			123,299
Other assets		111,383			158,285			135,521			121,074			98,564

Total assets	$	4,799,692		$	4,545,249		$	4,428,545		$	4,029,029		$	3,992,850

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	550,704		$	559,111		$	587,844		$	603,406		$	623,121
Exchangeable senior notes		180,000			180,000			180,000			199,800			199,706
Unsecured senior notes, net		893,737			645,749			645,581			645,412			645,246
Unsecured senior term loan		400,000			400,000			—			—			—
Unsecured line of credit		78,000			26,000			268,000			216,100			121,200
Accounts payable, accrued expenses and other liabilities		157,829			156,669			134,924			136,408			129,715

Total liabilities		2,260,270			1,967,529			1,816,349			1,801,126			1,718,988
Equity:
Stockholders’ equity:
Preferred stock		191,469			191,469			191,469			191,469			222,413
Common stock		1,542			1,541			1,541			1,313			1,313
Additional paid-in capital		2,776,046			2,773,248			2,773,994			2,373,652			2,371,762
Accumulated other comprehensive loss, net		(57,326	)		(58,882	)		(60,138	)		(61,912	)		(66,880	)
Dividends in excess of earnings		(381,105	)		(339,243	)		(304,759	)		(285,996	)		(264,507	)

Total stockholders’ equity		2,530,626			2,568,133			2,602,107			2,218,526			2,264,101
Noncontrolling interests		8,796			9,587			10,089			9,377			9,761

Total equity		2,539,422			2,577,720			2,612,196			2,227,903			2,273,862

Total liabilities and equity	$	4,799,692		$	4,545,249		$	4,428,545		$	4,029,029		$	3,992,850

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CONSOLIDATED STATEMENTS OF OPERATIONS

JUNE 30, 2012

(In thousands, except share and per share data)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Revenues:
Rental	$	95,708		$	91,475		$	84,854		$	83,549		$	81,145
Tenant recoveries		28,939			28,453			26,098			26,603			24,723
Other revenue		201			84			1,006			4,487			541

Total revenues		124,848			120,012			111,958			114,639			106,409

Expenses:
Rental operations		37,044			36,729			31,899			33,876			31,298
Depreciation and amortization		47,575			44,934			36,670			36,203			35,696
General and administrative		8,576			8,614			9,169			7,682			6,694
Acquisition-related expenses		12,245			633			309			136			334

Total expenses		105,440			90,910			78,047			77,897			74,022

Income from operations		19,408			29,102			33,911			36,742			32,387
Equity in net loss of unconsolidated partnerships		(317	)		(355	)		(640	)		(735	)		(466	)
Interest expense, net		(23,825	)		(22,219	)		(21,725	)		(22,887	)		(23,378	)
Other (expense)/income		(549	)		174			4,244			(4,259	)		(691	)

(Loss)/income from continuing operations		(5,283	)		6,702			15,790			8,861			7,852
Income/(loss) from discontinued operations		49			(4,420	)		163			76			95

Net (loss)/income		(5,234	)		2,282			15,953			8,937			7,947
Net loss/(income) attributable to noncontrolling interests		172			30			(244	)		(106	)		(68	)

Net (loss)/income attributable to the Company		(5,062	)		2,312			15,709			8,831			7,879
Preferred stock dividends		(3,651	)		(3,651	)		(3,651	)		(3,901	)		(4,241	)
Cost on redemption of preferred stock		—			—			—			(165	)		—

Net (loss)/income available to common stockholders	$	(8,713	)	$	(1,339	)	$	12,058		$	4,765		$	3,638

(Loss)/income from continuing operations per share atrributable to common stockholders:
Basic and diluted earnings per share	$	(0.06	)	$	0.02		$	0.08		$	0.03		$	0.03

Income/(loss) from discontinued operations per share atrributable to common stockholders:
Basic and diluted earnings per share	$	0.00		$	(0.03	)	$	0.00		$	0.00		$	0.00

Net (loss)/income per share atrributable to common stockholders:
Basic and diluted earnings per share	$	(0.06	)	$	(0.01	)	$	0.08		$	0.03		$	0.03

Weighted-average common shares outstanding:
Basic		152,775,422			152,659,258			140,909,345			129,872,349			129,858,098

Diluted		152,775,422			155,625,204			143,889,324			132,852,328			132,840,932

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

JUNE 30, 2012

(In thousands)


	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Restricted cash	$	2,485		$	4,830		$	5,662		$	6,330		$	6,614
Real estate held for sale		—			28,000			—			—			—
Acquired above-market leases, net		22,292			23,670			26,318			24,015			26,340
Acquired below-market ground lease, net		11,484			11,542			11,600			—			—
Deferred loan costs, net		19,476			18,445			16,253			17,254			12,325
Lease incentives, net		21,925			24,778			22,951			22,818			23,395
Other		33,721			47,020			52,737			50,657			29,890

Other assets	$	111,383		$	158,285		$	135,521		$	121,074		$	98,564

Security deposits	$	12,501		$	11,941		$	11,907		$	12,397		$	11,571
Dividends and distributions payable		37,433			37,431			35,067			30,500			31,089
Accounts payable, accrued expenses and other liabilities		95,123			100,689			81,441			86,658			79,274
Derivative instruments		3,701			289			—			—			580
Acquired below-market leases, net		9,071			6,319			6,509			6,853			7,201

Accounts payable, accrued expenses and other liabilities	$	157,829		$	156,669		$	134,924		$	136,408		$	129,715


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Rental operations expenses	$	24,583		$	24,673		$	20,888		$	23,082		$	21,049
Real estate taxes		12,461			12,056			11,011			10,794			10,249

Rental operations	$	37,044		$	36,729		$	31,899		$	33,876		$	31,298

Gain/(loss) on extinguishment of debt	$	34		$	182		$	51		$	(521	)	$	(249	)
Gain on revaluation of acquired unconsolidated partnerships		—			—			4,679			—			—
Non-cash adjustment for marketable securities		(545	)		—			(506	)		(3,802	)		(825	)
(Loss)/gain on derivative instruments		—			(8	)		20			64			383
Income tax expense		(38	)		—			—			—			—

Other (expense)/income	$	(549	)	$	174		$	4,244		$	(4,259	)	$	(691	)

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FFO (1)

JUNE 30, 2012

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


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net (loss)/income available to common stockholders	$	(8,713	)	$	(1,339	)	$	12,058		$	4,765		$	3,638
Adjustments:
Impairment loss		—			4,552			—			—			—
Gain on revaluation of acquired unconsolidated partnerships		—			—			(4,679	)		—			—
Noncontrolling interests in operating partnership		(166	)		(26	)		252			111			82
Depreciation & amortization - unconsolidated partnerships		323			323			826			945			944
Depreciation & amortization - consolidated entities		47,575			44,934			36,670			36,203			35,696
Depreciation & amortization - consolidated entities - discontinued operations		—			92			92			92			92
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(27	)		(27	)		(27	)		(26	)		(26	)

FFO - basic	$	38,992		$	48,509		$	45,192		$	42,090		$	40,426
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	40,680		$	50,197		$	46,880		$	43,778		$	42,114
Acquisition-related expenses		12,245			633			309			136			334

Core funds from operations (CFFO) - diluted	$	52,925		$	50,830		$	47,189		$	43,914		$	42,448

FFO per share - basic	$	0.25		$	0.31		$	0.31		$	0.31		$	0.30

FFO per share - diluted (2)	$	0.24		$	0.30		$	0.30		$	0.30		$	0.29

CFFO per share - diluted (2)	$	0.32		$	0.30		$	0.30		$	0.30		$	0.29

Dividends and distributions declared per common share	$	0.215		$	0.215		$	0.20		$	0.20		$	0.20

CFFO payout ratio		67.2	%		71.7	%		66.7	%		66.7	%		69.0	%

Weighted-average common shares and units outstanding diluted (3)		157,111,463			157,108,910			145,350,296			134,242,201			134,236,306
Dilutive effect of exchangeable senior notes due 2030 (2)		10,127,232			10,127,232			10,017,858			10,017,858			10,017,858

Weighted-average common shares and units outstanding diluted - FFO and CFFO		167,238,695			167,236,142			155,368,154			144,260,059			144,254,164

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

(2)

The calculations of FFO and CFFO per share diluted include 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 calculations of FFO and CFFO per diluted share.

(3)

The three months ended June 30, 2012 includes 2,947,140 shares of OP and LTIP units, which are considered anti-dilutive for purposes of calculating diluted earnings per share. The three months ended June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, and June 30, 2011 include 1,388,901, 1,483,706, 1,460,972, 1,389,873, and 1,395,374 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

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AFFO (1)

JUNE 30, 2012

(In thousands, except per share and ratio amounts)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Reconciliation of CFFO to adjusted funds from operations (AFFO):
CFFO - diluted	$	52,925		$	50,830		$	47,189		$	43,914		$	42,448
Adjustments:
Recurring capital expenditures and second generation tenant improvements (2)		(1,716	)		(4,629	)		(3,201	)		(4,114	)		(4,520	)
Leasing commissions		(1,335	)		(1,419	)		(1,192	)		(1,096	)		(1,140	)
(Gain)/loss on extinguishment of debt		(34	)		(182	)		(51	)		170			(112	)
Loss/(gain) on derivative instruments		—			8			(20	)		(64	)		(383	)
Non-cash adjustment for marketable securities		545			—			506			3,802			825
Amortization of deferred interest costs		1,736			1,742			1,748			1,754			1,760
Amortization of deferred loan costs		1,523			1,234			1,019			1,125			1,153
Amortization of fair-value of debt acquired		(130	)		(231	)		(327	)		(428	)		(427	)
Amortization of debt discounts		172			168			170			260			259
Amortization of lease incentives		659			1,173			599			577			553
Depreciation included in general and administrative expense		455			442			387			435			392
Non-cash equity compensation		2,887			2,689			2,029			1,898			1,785
Cost on redemption of preferred stock		—			—			—			165			—
Straight line rents		(4,300	)		(3,454	)		(6,701	)		(7,633	)		(5,948	)
Share of unconsolidated partnership adjustments (3)		26			1			(10	)		(58	)		(9	)
Fair-value lease revenue		2,219			2,299			2,102			1,976			1,975

AFFO - diluted	$	55,632		$	50,671		$	44,247		$	42,683		$	38,611

AFFO per share - diluted	$	0.33		$	0.30		$	0.28		$	0.30		$	0.27

Dividends and distributions declared per common share	$	0.215		$	0.215		$	0.20		$	0.20		$	0.20

AFFO payout ratio		65.2	%		71.7	%		71.4	%		66.7	%		74.1	%

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

(2)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. Excludes first generation tenant improvements. For definitions of recurring capital expenditures, first and second generation leases, see page 34.

(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.

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RECONCILIATION OF EBITDA (1)

JUNE 30, 2012

(In thousands)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11		6/30/11
Reconciliation of net (loss)/income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net (loss)/income available to common stockholders	$	(8,713	)	$	(1,339	)	$	12,058		$	4,765	$	3,638
Interest expense, net		23,825			22,219			21,725			22,887		23,378
Interest expense - unconsolidated partnerships		254			256			609			638		614
Income tax expense		38			—			—			—		—
Depreciation & amortization - consolidated entities		47,575			44,934			36,670			36,203		35,696
Depreciation & amortization - discontinued operations		—			92			92			92		92
Depreciation & amortization - unconsolidated partnerships		323			323			826			945		944

EBITDA		63,302			66,485			71,980			65,530		64,362
Noncontrolling interests		(172	)		(30	)		244			106		68
Impairment loss		—			4,552			—			—		—
Preferred dividends		3,651			3,651			3,651			3,901		4,241
Cost on redemption of preferred stock		—			—			—			165		—
Non-cash adjustment for marketable securities		545			—			506			3,802		825
Gain on revaluation of acquired unconsolidated partnerships		—			—			(4,679	)		—		—
Acquisition-related expenses		12,245			633			309			136		334

Adjusted EBITDA	$	79,571		$	75,291		$	72,011		$	73,640	$	69,830

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

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RECONCILIATION OF NET OPERATING INCOME (1)

JUNE 30, 2012

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Net (loss)/income	$	(5,234	)	$	2,282		$	15,953		$	8,937		$	7,947
(Income)/loss from discontinued operations		(49	)		4,420			(163	)		(76	)		(95	)
Equity in net loss of unconsolidated partnerships		317			355			640			735			466
Interest expense, net		23,825			22,219			21,725			22,887			23,378
Other expense/(income)		549			(174	)		(4,244	)		4,259			691

Income from operations		19,408			29,102			33,911			36,742			32,387
Depreciation and amortization		47,575			44,934			36,670			36,203			35,696
General and administrative		8,576			8,614			9,169			7,682			6,694
Acquisition-related expenses		12,245			633			309			136			334

Consolidated net operating income	$	87,804		$	83,283		$	80,059		$	80,763		$	75,111

Revenues:
Rental	$	95,708		$	91,475		$	84,854		$	83,549		$	81,145
Tenant recoveries		28,939			28,453			26,098			26,603			24,723
Other revenue (2)		201			84			1,006			4,487			541

Total revenues		124,848			120,012			111,958			114,639			106,409
Expenses:
Rental operations		37,044			36,729			31,899			33,876			31,298

Consolidated net operating income	$	87,804		$	83,283		$	80,059		$	80,763		$	75,111

Consolidated net operating income - cash basis (3)	$	86,800		$	83,432		$	75,140		$	72,484		$	71,861

Operating margin (4)		70.3	%		69.4	%		71.2	%		69.2	%		70.4	%
Operating expense recovery (5)		78.1	%		77.5	%		81.8	%		78.5	%		79.0	%

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

(2)	Includes lease termination income.

(3)	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 - other revenue).

(4)	Operating margin is calculated as ((rental revenues + tenant recovery revenues - rental operations) / (rental revenues + tenant recovery revenues)).

(5)	Operating expense recovery is calculated as (tenant recovery revenues / rental operations).

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INTEREST EXPENSE

JUNE 30, 2012

(In thousands)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Mortgage notes payable	$	9,882		$	10,275		$	10,520		$	10,776		$	11,130
Exchangeable senior notes		1,688			1,688			1,698			1,910			1,910
Unsecured senior notes		7,767			7,678			7,678			7,678			7,635
Unsecured senior term loan		1,911			42			—			—			—
Unsecured line of credit		235			1,309			808			756			371
Line of credit fees		664			664			671			608			108
Derivative instruments		467			10			—			444			1,296

Interest expense, net - cash basis	$	22,614		$	21,666		$	21,375		$	22,172		$	22,450

Non-cash interest expense
Amortization of fair-value of debt acquired		(130	)		(231	)		(327	)		(428	)		(427	)
Amortization of debt discounts		172			168			170			260			259
Amortization of deferred loan costs		1,523			1,234			1,019			1,125			1,153
Amortization of deferred interest costs		1,736			1,742			1,748			1,754			1,760
Capitalized interest		(2,090	)		(2,360	)		(2,260	)		(1,996	)		(1,817	)

Interest expense, net	$	23,825		$	22,219		$	21,725		$	22,887		$	23,378

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COVERAGE RATIOS (1)

JUNE 30, 2012

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Interest coverage ratio
Adjusted EBITDA	$	79,571		$	75,291		$	72,011		$	73,640		$	69,830
Interest expense:
Interest expense, net		23,825			22,219			21,725			22,887			23,378
Interest expense - unconsolidated partnerships		254			256			609			638			614
Amortization of deferred interest costs		(1,736	)		(1,742	)		(1,748	)		(1,754	)		(1,760	)
Amortization of deferred loan costs		(1,523	)		(1,234	)		(1,019	)		(1,125	)		(1,153	)
Amortization of debt discounts		(172	)		(168	)		(170	)		(260	)		(259	)
Amortization of fair-value of debt acquired		130			231			327			428			427

Total interest expense	$	20,778		$	19,562		$	19,724		$	20,814		$	21,247

Interest coverage ratio		3.8			3.8			3.7			3.5			3.3

Fixed charge coverage ratio
Adjusted EBITDA	$	79,571		$	75,291		$	72,011		$	73,640		$	69,830
Fixed charges:
Interest expense, net		23,825			22,219			21,725			22,887			23,378
Interest expense - unconsolidated partnerships		254			256			609			638			614
Amortization of deferred interest costs		(1,736	)		(1,742	)		(1,748	)		(1,754	)		(1,760	)
Amortization of deferred loan costs		(1,523	)		(1,234	)		(1,019	)		(1,125	)		(1,153	)
Amortization of debt discounts		(172	)		(168	)		(170	)		(260	)		(259	)
Amortization of fair - value of debt acquired		130			231			327			428			427
Principal payments		1,918			2,092			2,141			1,758			1,771
Preferred dividends		3,651			3,651			3,651			3,901			4,241

Total fixed charges	$	26,347		$	25,305		$	25,516		$	26,473		$	27,259

Fixed charge coverage ratio		3.0			3.0			2.8			2.8			2.6

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

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DEBT SUMMARY

JUNE 30, 2012

(Dollars in thousands)


Consolidated Debt:	Stated Rate			Effective Rate			Principal Balance		Unamortized Premium / (Discount)			Carrying Value		Maturity Date
Fixed Rate Mortgages:
Center for Life Science \| Boston		7.75	%		7.75	%	$	340,334	$	—		$	340,334		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		61,229		2,652			63,881		12/18
Shady Grove Road		5.97	%		5.97	%		145,748		—			145,748		09/16
900 Uniqema Boulevard		8.61	%		5.61	%		710		31			741		05/15

Total / Weighted-Average on Fixed Rate Mortgages		7.12	%		7.02	%		548,021		2,683			550,704

Fixed Rate Debt:
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		(1,954	)		398,046		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(2,125	)		247,875		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(2,184	)		247,816		07/22

Subtotal / Weighted-Average on Unsecured Senior Notes		4.59	%		4.73	%		900,000		(6,263	)		893,737

Total / Weighted-Average on Fixed Rate Debt		5.35	%		5.39	%		1,628,021		(3,580	)		1,624,441

Variable Rate Debt:
Unsecured Senior Term Loan (1)		1.90	%		2.36	%		400,000		—			400,000		03/17
Unsecured Line of Credit (2)		1.79	%		1.79	%		78,000		—			78,000		07/15

Total / Weighted-Average on Variable Rate Debt		1.88	%		2.27	%		478,000		—			478,000

Total / Weighted-Average on Unsecured Debt		3.66	%		3.86	%		1,558,000		(6,263	)		1,551,737
Total / Weighted-Average on Consolidated Debt		4.57	%		4.68	%	$	2,106,021	$	(3,580	)	$	2,102,441

Share of Unconsolidated Partnership Debt:

PREI Secured Construction Loan (20%) (variable)		3.25	%		3.25	%		27,795		—			27,795		08/13

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.25	%		3.25	%		27,795		—			27,795
Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		4.55	%		4.66	%	$	2,133,816	$	(3,580	)	$	2,130,236

(1)

The company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the $400 million outstanding under the unsecured senior term loan facility at 2.81% for five years, subject to adjustments based on the company’s credit ratings. Including the effect of these swaps, the weighted-average effective interest rate for the $400 million outstanding under the unsecured senior term loan facility was 2.36% at June 30, 2012.

(2)	Effective rate excludes facility fee of 35 bps on the entire capacity of the unsecured line of credit or $750.0 million at approximately $664,000 per quarter.

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DEBT MATURITIES

JUNE 30, 2012

(In thousands)

Weighted-average debt maturity is 6.1 years for consolidated debt (excluding extension options)


	2012		2013		2014		2015		2016		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	3,922	$	8,291	$	339,020	$	6,253	$	143,426	$	47,109	$	548,021
Unsecured exchangeable senior notes due 2030 (1)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2016		—		—		—		—		400,000		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000
Unsecured senior notes due 2022		—		—		—		—		—		250,000		250,000

Total fixed rate debt		3,922		8,291		339,020		6,253		543,426		727,109		1,628,021
Variable rate debt:
Unsecured senior term loan		—		—		—		—		—		400,000		400,000
Unsecured line of credit		—		—		—		78,000		—		—		78,000

Total variable rate debt		—		—		—		78,000		—		400,000		478,000

Total consolidated debt	$	3,922	$	8,291	$	339,020	$	84,253	$	543,426	$	1,127,109	$	2,106,021

Share of unconsolidated partnership debt:
PREI secured construction loan (20%) (variable)		—		27,795		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	—	$	27,795	$	—	$	—	$	—	$	—	$	27,795

Total consolidated and share of unconsolidated partnership debt	$	3,922	$	36,086	$	339,020	$	84,253	$	543,426	$	1,127,109	$	2,133,816

(1)

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.

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COMMON AND PREFERRED STOCK DATA

JUNE 30, 2012

(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Earnings per share
Weighted-average common shares outstanding		152,775			152,659			140,909			129,872			129,858
Weighted-average OP and LTIP units outstanding		—			2,966			2,980			2,980			2,983

Diluted common shares - EPS		152,775			155,625			143,889			132,852			132,841

Funds from operations
Weighted-average common shares outstanding		152,775			152,659			140,909			129,872			129,858
Weighted-average OP and LTIP units outstanding		2,948			2,966			2,980			2,980			2,983
Dilutive effect of restricted stock		1,389			1,484			1,461			1,390			1,395
Dilutive effect of exchangeable senior notes due 2030		10,127			10,127			10,018			10,018			10,018

Diluted common shares - FFO		167,239			167,236			155,368			144,260			144,254

Closing common shares, OP and LTIP units outstanding		157,127			157,120			157,081			134,245			134,240
Preferred shares outstanding		7,920			7,920			7,920			7,920			9,200
High price	$	20.30		$	19.65		$	18.95		$	21.03		$	20.86
Low price	$	17.52		$	17.72		$	15.44		$	14.94		$	18.14
Average closing price	$	18.71		$	18.65		$	17.68		$	18.16		$	19.31
Closing price	$	18.68		$	18.98		$	18.08		$	16.57		$	19.24
Dividends per share - annualized	$	0.86		$	0.86		$	0.80		$	0.80		$	0.80
Closing dividend yield - annualized		4.6	%		4.5	%		4.4	%		4.8	%		4.2	%

DIVIDENDS PER SHARE

	6/30/12			3/31/12			12/31/11			9/30/11			6/30/11
Common Stock - BMR
Amount	$	0.215		$	0.215		$	0.20		$	0.20		$	0.20
Declared		June 15, 2012			March 15, 2012			December 14, 2011			September 15, 2011			June 15, 2011
Record		June 29, 2012			March 30, 2012			December 30, 2011			September 30, 2011			June 30, 2011
Paid		July 16, 2012			April 16, 2012			January 17, 2012			October 17, 2011			July 15, 2011
Preferred Stock - BMR PrA
Amount	$	0.46094		$	0.46094		$	0.46094		$	0.46094		$	0.46094
Declared		June 15, 2012			March 15, 2012			December 14, 2011			September 15, 2011			June 15, 2011
Record		June 29, 2012			March 30, 2012			December 30, 2011			September 30, 2011			June 30, 2011
Paid		July 16, 2012			April 16, 2012			January 17, 2012			October 17, 2011			July 15, 2011

LOGO

MARKET SUMMARY

JUNE 30, 2012


				Current (1)									Expiration (2)
Market	Leased Square Feet			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft
				(In thousands)									(In thousands)
Boston		2,769,900		$	150,537			35.2	%	$	54.35		$	152,171			31.3	%	$	54.94
San Francisco		2,222,891			65,090			15.2	%		29.28			78,859			16.2	%		35.48
San Diego		1,820,512			60,986			14.3	%		33.50			75,652			15.6	%		41.56
Maryland		1,480,115			57,237			13.4	%		38.67			72,146			14.9	%		48.74
New York / New Jersey		1,171,424			39,363			9.2	%		33.60			48,903			10.1	%		41.75
Pennsylvania		652,009			15,159			3.5	%		23.25			16,083			3.3	%		24.67
Seattle		244,737			11,682			2.7	%		47.73			13,443			2.8	%		54.93
University Related - Other		829,576			27,369			6.5	%		32.99			28,185			5.8	%		33.98

Total portfolio / weighted-average		11,191,164		$	427,423			100.0	%	$	38.19		$	485,442			100.0	%	$	43.38


	Percent Leased
Market	Current Operating Portfolio			Long-Term Lease Up (3)			Total Operating Portfolio			Redevelopment (4)			Unconsolidated Partnership Portfolio (5)
Boston		91.2	%		—			91.2	%		—			45.0	%
San Francisco		92.9	%		64.6	%		78.9	%		—			—
San Diego		91.0	%		—			91.0	%		—			100.0	%
Maryland		97.3	%		—			97.3	%		55.9	%		—
New York / New Jersey		83.0	%		—			83.0	%		—			—
Pennsylvania		89.8	%		—			89.8	%		—			—
Seattle		63.0	%		—			63.0	%		—			—
University Related - Other		98.7	%		—			98.7	%		—			—

Total portfolio (6)		90.6	%		64.6	%		87.7	%		55.9	%		56.4	%

Total portfolio weighted-average leased % (7)		91.8	%		64.3	%		89.8	%		33.6	%		56.4	%

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

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

(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.

(6)	Calculated based on leased square feet divided by total square feet.

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

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2012


	Property	Acquisition Date	Property Status (1)		Buildings		Rentable Square Feet		Percent of Rentable Sq Ft			Leased Square Feet		Percent Leased
	Property	Acquisition Date	Property Status (1)		Buildings		Rentable Square Feet		Percent of Rentable Sq Ft			Leased Square Feet		6/30/12			3/31/12
	Boston
1	Albany Street	May 31, 2005		Stabilized		2		75,003		0.6	%		75,003		100.0	%		100.0	%
2	320 Bent Street (2)	December 14, 2011		Lease Up		1		184,405		1.5	%		145,304		78.8	%		78.8	%
3	301 Binney Street (2)	December 14, 2011		Lease Up		1		417,290		3.3	%		310,381		74.4	%		74.4	%
4	301 Binney Street Garage (2)	December 14, 2011		Stabilized		1		503 Stalls		n/a			503 Stalls		100.0	%		100.0	%
5	210 Broadway	February 9, 2012		Lease Up		1		64,812		0.5	%		16,933		26.1	%		14.2	%
6	Center for Life Science \| Boston	November 17, 2006		Stabilized		1		704,159		5.6	%		696,383		98.9	%		97.6	%
7	Charles Street	April 7, 2006		Stabilized		1		47,912		0.4	%		47,912		100.0	%		100.0	%
8	Coolidge Avenue	April 5, 2005		Lease Up		1		37,684		0.3	%		32,584		86.5	%		86.5	%
9	21 Erie Street	May 31, 2005		Stabilized		1		48,627		0.4	%		48,627		100.0	%		100.0	%
10	40 Erie Street	May 31, 2005		Stabilized		1		100,854		0.8	%		100,854		100.0	%		100.0	%
11	47 Erie Street Parking Structure	May 31, 2005		Stabilized		1		447 Stalls		n/a			447 Stalls		100.0	%		100.0	%
12	Fresh Pond Research Park	April 5, 2005		Lease Up		6		90,702		0.7	%		46,685		51.5	%		51.5	%
13	50 Hampshire Street	February 9, 2012		Stabilized		1		183,052		1.5	%		181,952		99.4	%		99.4	%
14	60 Hampshire Street	February 9, 2012		Stabilized		1		39,014		0.3	%		39,014		100.0	%		100.0	%
15	500 Kendall Street (Kendall D)	May 31, 2005		Stabilized		1		349,325		2.8	%		346,535		99.2	%		99.2	%
16	675 W. Kendall Street (Kendall A)	May 31, 2005		Stabilized		1		302,919		2.4	%		302,919		100.0	%		99.5	%
17	Kendall Crossing Apartments (2)	December 14, 2011		Stabilized		1		37 Apts.		n/a			37 Apts.		94.4	%		100.0	%
18	Sidney Street	May 31, 2005		Stabilized		1		191,904		1.5	%		191,904		100.0	%		100.0	%
19	Vassar Street	May 31, 2005		Stabilized		1		60,845		0.5	%		60,845		100.0	%		100.0	%

	Total Boston					25		2,898,507		23.1	%		2,643,835		91.2	%		90.6	%

	San Francisco
20	Ardentech Court	November 18, 2004		Stabilized		1		55,588		0.4	%		55,588		100.0	%		100.0	%
21	Ardenwood Venture (3)	June 14, 2006		Lease Up		1		72,500		0.6	%		56,257		77.6	%		55.2	%
22	Bayshore Boulevard	August 17, 2004		Stabilized		3		183,344		1.5	%		183,344		100.0	%		100.0	%
23	Bridgeview Technology Park I	September 10, 2004		Lease Up		2		201,567		1.6	%		176,616		87.6	%		87.6	%
24	Bridgeview Technology Park II	March 16, 2005		Lease Up		1		50,400		0.4	%		28,714		57.0	%		57.0	%
25	550 Broadway Street	April 27, 2012		Stabilized		1		71,239		0.6	%		71,239		100.0	%		n/a
26	Dumbarton Circle	May 27, 2005		Stabilized		3		44,000		0.3	%		44,000		100.0	%		100.0	%
27	Gateway Business Park	October 26, 2010		Stabilized		6		284,013		2.3	%		283,164		99.7	%		99.7	%
28	Industrial Road	August 17, 2004		Stabilized		1		171,344		1.4	%		171,344		100.0	%		100.0	%
29	Kaiser Drive	August 25, 2005		Lease Up		1		87,953		0.7	%		49,915		56.8	%		56.8	%
30	Pacific Industrial Center	July 11, 2006		Lease Up		1		305,026		2.4	%		219,255		71.9	%		71.9	%
31	Pacific Research Center North	July 11, 2006		Lease Up		6		661,245		5.2	%		415,025		62.8	%		52.3	%
32	Pacific Research Center South	July 11, 2006		Lease Up		3		423,246		3.4	%		263,543		62.3	%		62.3	%
33	Science Center at Oyster Point	October 26, 2010		Stabilized		2		204,887		1.6	%		204,887		100.0	%		100.0	%

	Total San Francisco					32		2,816,352		22.4	%		2,222,891		78.9	%		75.3	%

	San Diego
34	Balboa Avenue	August 13, 2004		Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
35	Bernardo Center Drive	August 13, 2004		Stabilized		1		61,286		0.5	%		61,286		100.0	%		100.0	%
36	4570 Executive Drive	September 17, 2010		Lease Up		1		125,219		1.0	%		106,757		85.3	%		85.3	%
37	Faraday Avenue	September 19, 2005		Stabilized		1		28,704		0.2	%		28,704		100.0	%		100.0	%
38	Gazelle Court	March 30, 2010		Stabilized		1		176,000		1.4	%		176,000		100.0	%		100.0	%
39	3525 John Hopkins Court	December 28, 2010		Stabilized		1		48,306		0.4	%		48,306		100.0	%		100.0	%
40	3545-3575 John Hopkins Court	August 16, 2006		Lease Up		1		72,192		0.6	%		54,126		75.0	%		75.0	%
41	6114-6154 Nancy Ridge Drive	May 2, 2007		Stabilized		3		196,557		1.6	%		196,557		100.0	%		100.0	%
42	6122-6126 Nancy Ridge Drive	April 25, 2012		Stabilized		1		68,000		0.5	%		68,000		100.0	%		n/a
43	6828 Nancy Ridge Drive	April 21, 2005		Stabilized		1		42,138		0.3	%		42,138		100.0	%		100.0	%
44	Pacific Center Boulevard	August 24, 2007		Stabilized		2		66,745		0.5	%		66,745		100.0	%		100.0	%
45	Road to the Cure	December 14, 2006		Lease Up		1		67,998		0.5	%		37,219		54.7	%		54.7	%
46	San Diego Science Center	October 21, 2004		Lease Up		1		105,364		0.8	%		66,818		63.4	%		81.0	%
47	10240 Science Center Drive	September 23, 2010		Stabilized		1		49,347		0.4	%		49,347		100.0	%		100.0	%
48	10255 Science Center Drive	September 24, 2004		Stabilized		1		53,740		0.4	%		53,740		100.0	%		100.0	%
49	Sorrento Plaza	December 18, 2010		Stabilized		2		31,184		0.2	%		31,184		100.0	%		100.0	%
50	Sorrento Valley Boulevard	December 7, 2006		Stabilized		1		54,924		0.4	%		54,924		100.0	%		100.0	%

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2012


	Property	Acquisition Date	Property Status (1)	Buildings		Rentable Square Feet		Percent of Rentable Sq Ft			Leased Square Feet		Percent Leased
	Property	Acquisition Date	Property Status (1)	Buildings		Rentable Square Feet		Percent of Rentable Sq Ft			Leased Square Feet		6/30/12			3/31/12
	San Diego (Continued)
51	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.3	%		35,940		100.0	%		100.0	%
52	Sorrento West	October 15, 2010	Lease Up		8		164,074		1.3	%		120,983		73.7	%		72.9	%
53	Summers Ridge	June 8, 2012	Stabilized		—		—		n/a			—		100.0	%		n/a
54	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.6	%		81,204		100.0	%		100.0	%
55	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.8	%		94,866		100.0	%		100.0	%
56	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.8	%		104,870		100.0	%		100.0	%
57	Waples Street	March 1, 2005	Stabilized		1		50,055		0.4	%		50,055		100.0	%		100.0	%
58	Wateridge Circle	November 1, 2011	Lease Up		3		106,490		0.8	%		82,536		77.5	%		100.0	%

	Total San Diego				39		1,920,547		15.0	%		1,747,649		91.0	%		89.8	%

	Maryland
59	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.6	%		77,225		100.0	%		100.0	%
60	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.3	%		289,912		100.0	%		100.0	%
61	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.4	%		51,181		100.0	%		100.0	%
62	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		1.0	%		122,600		100.0	%		100.0	%
63	9708-9714 Medical Center Drive	May 3, 2010	Redevelopment		3		92,124		0.7	%		5,399		5.9	%		—
64	1701 / 1711 Research Boulevard	May 9, 2011	Redevelopment		1		104,743		0.8	%		104,743		100.0	%		100.0	%
65	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		5.0	%		635,058		100.0	%		100.0	%
66	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.7	%		91,592		100.0	%		100.0	%
67	50 West Watkins Mill Road	May 7, 2010	Lease Up		1		57,410		0.5	%		20,000		34.8	%		34.8	%
68	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.7	%		82,405		100.0	%		100.0	%

	Total Maryland				16		1,604,250		12.7	%		1,480,115		92.3	%		91.9	%

	New York / New Jersey
69	Ardsley Park	June 23, 2011	Stabilized		5		160,500		1.3	%		160,500		100.0	%		100.0	%
70	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.6	%		46,386		64.2	%		64.2	%
71	Landmark at Eastview	August 12, 2004	Lease Up		5		768,063		6.1	%		604,018		78.6	%		81.7	%
72	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		2.9	%		360,520		100.0	%		100.0	%
73	One Research Way	May 31, 2006	Lease Up		1		49,421		0.4	%		—		—			—

	Total New York / New Jersey				15		1,410,804		11.3	%		1,171,424		83.0	%		84.7	%

	Pennsylvania
74	Eisenhower Road	August 13, 2004	Stabilized		1		27,750		0.2	%		27,750		100.0	%		100.0	%
75	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.6	%		71,500		100.0	%		100.0	%
76	King of Prussia	August 11, 2004	Stabilized		5		374,387		3.0	%		374,387		100.0	%		100.0	%
77	Phoenixville Pike	May 5, 2005	Lease Up		1		104,400		0.8	%		90,518		86.7	%		86.7	%
78	Spring Mill Drive	July 20, 2006	Stabilized		1		76,561		0.6	%		76,561		100.0	%		87.4	%
79	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
80	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.5	%		—		—			—

	Total Pennsylvania				11		725,712		5.8	%		652,009		89.8	%		88.5	%

	Seattle
81	Elliott Avenue	August 24, 2004	Lease Up		1		151,194		1.2	%		64,483		42.6	%		42.6	%
82	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
83	530 Fairview Avenue	January 12, 2006	Stabilized		1		96,305		0.8	%		96,305		100.0	%		93.5	%
84	Monte Villa Parkway	August 17, 2004	Lease Up		1		51,000		0.4	%		19,108		37.5	%		37.5	%
85	217th Place	November 21, 2006	Lease Up		1		67,799		0.5	%		42,628		62.9	%		62.9	%

	Total Seattle				5		388,511		3.1	%		244,737		63.0	%		61.4	%

	University Related - Other
86	Granta Park	June 12, 2012	Stabilized		11		472,234		3.7	%		469,686		99.5	%		n/a
87	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.5	%		61,603		100.0	%		100.0	%
88	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.4	%		39,691		82.0	%		82.0	%
89	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.6	%		78,023		100.0	%		100.0	%
90	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.2	%		149,984		100.0	%		100.0	%
91	Weston Parkway	December 17, 2010	Stabilized		1		30,589		0.2	%		30,589		100.0	%		100.0	%

	Total University Related - Other				20		840,827		6.6	%		829,576		98.7	%		97.6	%

	Total				163		12,605,510		100.0	%		10,992,236		87.2	%		85.6	%

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

(2)	Previously held through the Company’s joint venture with PREI; the Company purchased PREI’s interest in these properties in December 2011.

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

LOGO

REDEVELOPMENT, PRE-DEVELOPMENT AND OTHER CAPITAL IMPROVEMENTS

JUNE 30, 2012

(Dollars in thousands)


Property	Market	Rentable Square Feet		Percent Leased			Capitalized Interest 3 Mo. Ended 6/30/12 (1)		Investment to Date (2)		Estimated Total Investment (3)		Estimated In-Service Date (4)
REDEVELOPMENT:
Ardsley Park	New York /New Jersey		160,500		100.0	%	$	329	$	34,700	$	36,000	In-Service
9708-9714 Medical Center Drive	Maryland		92,124		5.9	%		373		29,000		29,400	Q1 2013
1701 / 1711 Research Blvd	Maryland		104,743		100.0	%		222		13,200		28,200	Q2 2013

Total / weighted-average			357,367		75.7	%	$	924	$	76,900	$	93,600

PRE-DEVELOPMENT:
Eccles Avenue	San Francisco		260,000		—		$	364	$	28,100	$	29,200
4775 / 4785 Executive Drive	San Diego		250,000		—			367		28,500		28,600
450 Kendall Street (Kendall G)	Boston		53,000		—			118		9,200		10,400

Total / weighted-average			563,000		—		$	849	$	65,800	$	68,200
Other Capital Improvements (5)	—						$	317	$	29,600	$	68,400

Total / weighted-average							$	2,090	$	172,300	$	230,200

(1)	Interest was capitalized at an average rate of 5.23% during the three months ended June 30, 2012.

(2)	Includes amounts paid for acquiring the property, landlord improvements, and tenant improvement allowances, but excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through June 30, 2012.

(3)	Excludes costs associated with speculative leasing. Pre-development only includes amounts related to basis, planning, entitlement, or other preparations for future construction and excludes amounts for total estimated future construction costs.

(4)	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.

(5)	Includes improvements on operating properties, including major tenant improvement projects on properties which are not considered to be in Redevelopment or Pre-development as of June 30, 2012.

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PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS AND DEVELOPMENT POTENTIAL

JUNE 30, 2012

(Dollars in thousands)

UNCONSOLIDATED PARTNERSHIPS:

Acquisition Date

Property
Status (1)

Buildings

Rentable
Square Feet

Leased
Square
Feet

Percent
Leased

Market

Property

6/30/12

3/31/12

McKellar Court

McKellar Court

September 30, 2004

Stabilized

72,863

100.0

San Diego

PREI

650 E. Kendall Street (Kendall B)

April 4, 2007

Lease Up

280,000

126,065

45.0

—

Boston

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1,409 Stalls

n/a

100.0

Boston


	McKellar Court (2)			PREI			Total
Total assets	$	14,181		$	47,184		$	261,365
Total debt (3)		10,280			138,975			149,255
Current annualized base rent		1,920			6,884			8,804
BioMed’s net investment in unconsolidated partnerships	$	12,274		$	20,288		$	32,562
BioMed’s pro rata share of debt		—			27,795			27,795
BioMed ownership percentage		22	%		20	%		20	%


DEVELOPMENT POTENTIAL:	Estimated Developable Square Feet
Market	Estimated Developable Square Feet
Boston		103,000
San Francisco		1,606,000
San Diego		250,000
Maryland		674,000
New York / New Jersey		964,000
Pennsylvania		103,000
Seattle		114,000
University Related - Other		138,000

Total		3,952,000

(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.

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LEASE EXPIRATIONS

JUNE 30, 2012

The weighted-average remaining lease terms are 7.7 years.


						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		5,114		—		$	104		—		$	20.34	$	104		—		$	20.34
Third quarter 2012		127,571		1.1	%		3,976		0.9	%		31.17		3,959		0.8	%		31.03
Fourth quarter 2012		216,675		1.9	%		14,706		3.4	%		67.87		14,706		3.0	%		67.87

2012		344,246		3.0	%		18,682		4.3	%		54.27		18,665		3.8	%		54.22
2013		512,842		4.6	%		11,532		2.7	%		22.49		12,087		2.5	%		23.57
2014		771,138		6.9	%		22,459		5.3	%		29.12		22,934		4.7	%		29.74
2015		515,710		4.6	%		16,906		4.0	%		32.78		17,964		3.7	%		34.83
2016		1,304,845		11.7	%		55,373		13.0	%		42.44		58,994		12.2	%		45.21
2017		357,515		3.2	%		10,811		2.5	%		30.24		12,392		2.6	%		34.66
2018		1,218,015		10.9	%		52,745		12.3	%		43.30		58,564		12.1	%		48.08
2019		493,086		4.4	%		14,952		3.5	%		30.32		16,628		3.4	%		33.72
2020		720,652		6.4	%		27,487		6.4	%		38.14		26,815		5.5	%		37.21
2021		679,533		6.1	%		18,527		4.3	%		27.26		21,720		4.5	%		31.96
Thereafter		4,268,468		38.2	%		177,845		41.7	%		41.66		218,575		45.0	%		51.21

Total / weighted-average		11,191,164		100.0	%	$	427,423		100.0	%	$	38.19	$	485,442		100.0	%	$	43.38

(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.

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EXPIRATIONS BY MARKET

JUNE 30, 2012


	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		Maryland		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		3,071		—		2,043		—		—		—		5,114
2012		12,292		138,963		146,875		—		23,127		—		22,213		776		344,246
2013		15,410		179,072		207,754		—		20,141		61,703		19,108		9,654		512,842
2014		67,033		74,929		62,060		62,900		63,525		407,961		—		32,730		771,138
2015		46,192		73,875		313,193		—		—		44,382		—		38,068		515,710
2016		683,587		195,061		27,849		—		40,687		31,166		36,885		289,610		1,304,845
2017		76,277		110,561		48,223		51,181		61,517		—		9,756		—		357,515
2018		807,347		85,274		243,555		—		24,944		—		42,628		14,267		1,218,015
2019		23,115		133,571		—		168,817		—		—		49,664		117,919		493,086
2020		289,192		49,915		72,863		127,999		44,249		—		—		136,434		720,652
2021		16,634		250,306		8,365		39,505		132,933		71,500		—		160,290		679,533
Thereafter		732,821		931,364		686,704		1,029,713		758,258		35,297		64,483		29,828		4,268,468

Total		2,769,900		2,222,891		1,820,512		1,480,115		1,171,424		652,009		244,737		829,576		11,191,164

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10 LARGEST TENANTS

JUNE 30, 2012

BioMed’s properties were leased to 195 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. (2)		924,970		8.3	%	$	44,483	$	48.09		10.4	%		June 2026
2	Vertex Pharmaceuticals Incorporated (3)		685,286		6.1	%		34,516		50.37		8.1	%		Multiple
3	Elan Pharmaceuticals, Inc. (4)		414,430		3.7	%		27,238		65.72		6.4	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		3.2	%		25,543		70.49		6.0	%		July 2023
5	Regeneron Pharmaceuticals, Inc. (5)		599,676		5.4	%		24,393		40.68		5.7	%		Multiple
6	Sanofi (6)		418,003		3.7	%		19,470		46.58		4.6	%		Multiple
7	Children’s Hospital Corporation (7)		200,081		1.8	%		13,754		68.74		3.2	%		May 2023
8	Ironwood Pharmaceuticals, Inc.		210,259		1.9	%		11,220		53.36		2.6	%		February 2016
9	Merck & Co., Inc. (8)		214,946		1.9	%		10,632		49.46		2.5	%		Multiple
10	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		3.3	%		9,002		24.04		2.1	%		April 2014

	Total / weighted-average (9)		4,404,402		39.3	%	$	220,251	$	50.01		51.6	%

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

(2)	Subsequent to quarter end, GlaxoSmithKline plc (GSK) and Human Genome Sciences (HGS) entered into a definitive agreement under which GSK will acquire HGS.

(3)	81,204 square feet are leased with a subsidiary of Vertex Pharmaceuticals Incorporated. 81,204 square feet expire October 2013, 292,758 square feet expire January 2016, 20,608 square feet expire May 2017, and 290,716 square feet expire May 2018.

(4)	138,963 square feet expire December 2012, 15,482 square feet expire January 2013, 55,098 square feet expire December 2014, 115,888 square feet expire April 2024, and 88,999 square feet expire February 2025.

(5)	7,110 square feet expire June 2014 and 592,566 square feet expire July 2024.

(6)	343,000 square feet expire August 2018 and 75,003 square feet expire October 2018.

(7)	This tenant guarantees rent on 49,866 square feet leased at the Center for Life Science \| Boston.

(8)	This tenant 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.

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

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SAME PROPERTY ANALYSIS

JUNE 30, 2012

(Dollars in thousands)


	Three Months Ended
	6/30/12			6/30/11			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		11,420,165			11,420,165
Percent of total portfolio		88.1	%		95.5	%
Percent leased		85.9	%		81.3	%
Revenues:
Rental	$	89,236		$	85,778			4.0	%
Tenant recoveries		29,653			28,308			4.8	%

Total revenues		118,889			114,086			4.2	%

Expenses:
Rental operations		35,008			34,711			0.9	%

Same property net operating income (2)	$	83,881		$	79,375			5.7	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(921	)		(1,428	)		(35.5	%)

Same property net operating income - cash basis (2) (3)	$	82,960		$	77,947			6.4	%

Rental revenue - cash basis (3)	$	87,551		$	83,582			4.7	%

(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 15.

(3)	Represents rents on a “cash-on-cash” basis.

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ACQUISITIONS / DISPOSITIONS

JUNE 30, 2012


Acquisitions detail for 2012:	Market	Closing Date	Rentable Square Feet (1)		Investment		Percent Leased at Acquisition
Property	Market	Closing Date	Rentable Square Feet (1)		Investment		Percent Leased at Acquisition
					(In thousands)
First Quarter 2012
Cambridge Place (2)	Boston	February 9, 2012		286,878	$	119,000		80.2	%

First quarter total				286,878	$	119,000		80.2	%

Second Quarter 2012
6122-6126 Nancy Ridge Drive	San Diego	April 25, 2012		68,000	$	20,000		100.0	%
550 Broadway Street	San Francisco	April 27, 2012		71,239		28,000		100.0	%
Summers Ridge	San Diego	June 8, 2012		—		47,102		n/a
Granta Park	University Related-Other	June 12, 2012		472,234		196,044		99.5	%

Second quarter total				611,473	$	291,146		99.6	%


Total 2012 Acquisitions				898,351	$	410,146		93.4	%


Dispositions detail for 2012:	Market	Closing Date	Rentable Square Feet		Gross Proceeds
Property	Market	Closing Date	Rentable Square Feet		Gross Proceeds
					(In thousands)
Second Quarter 2012
Forbes Boulevard	San Francisco	April 27, 2012		240,000	$	28,000

Second quarter total				240,000	$	28,000

Total 2012 Dispositions				240,000	$	28,000

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

(2)	Includes 210 Broadway, 50 Hampshire Street and 60 Hampshire Street properties.

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LEASING ACTIVITY (1)

JUNE 30, 2012


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft
Leased Square Feet as of March 31, 2012		10,395,328
Acquisitions		608,925		$	31.48
Expirations		(169,811	)		38.62
Terminations		(5,048	)		33.90
Pre-leased delivery		10,955			27.00
Renewals, amendments, and extensions		87,383			22.36
New leases - 1st generation (2)		219,552			42.60
New leases - 2nd generation (2)		43,880			21.87

Leased Square Feet as of June 30, 2012		11,191,164

Pre-leased Square Feet as of March 31, 2012		90,831
Pre-leased delivery		(10,955	)	$	27.00

Pre-leased Square Feet as of June 30, 2012		79,876

Gross Leasing Activity - Second Quarter 2012		350,815		$	34.96

Net Absorption		186,911		$	31.21

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

(2)	For definitions of first and second generation leases, see page 34.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS, AND TENANT CONCESSIONS

JUNE 30, 2012


	Three Months Ended
	6/30/12		3/31/12		12/31/11		9/30/11		6/30/11
Renewals, Amendments, and Extensions (1)
Number of renewals		7		6		7		8		8
Square feet		87,383		70,894		112,795		94,506		102,413
Tenant improvement costs per square foot (2)	$	0.17	$	10.31	$	—	$	0.79	$	2.42
Leasing commission costs per square foot (2)		1.15		2.99		1.96		6.85		5.52
Tenant concession costs per square foot (2)(3)		0.24		7.99		0.24		—		9.69

Total tenant improvement, leasing commission, and tenant concession costs psf	$	1.56	$	21.29	$	2.20	$	7.64	$	17.63

New Leases - 1st Generation (4)
Number of leases		8		8		5		2		6
Square feet		219,552		319,947		57,783		107,504		476,335
Tenant improvement costs per square foot (2)	$	118.40	$	18.98	$	42.91	$	139.53	$	70.24
Leasing commission costs per square foot (2)		17.19		7.84		8.26		0.52		13.68
Tenant concession costs per square foot (2)(3)		4.28		29.22		11.28		0.17		9.84

Total tenant improvement, leasing commission, and tenant concession costs psf	$	139.87	$	56.04	$	62.45	$	140.22	$	93.76

New Leases - 2nd Generation (4)
Number of leases		8		8		9		9		6
Square feet		43,880		75,418		83,364		124,958		23,771
Tenant improvement costs per square foot (2)	$	7.93	$	27.22	$	0.99	$	33.92	$	2.84
Leasing commission costs per square foot (2)		5.62		2.78		1.36		8.37		3.03
Tenant concession costs per square foot (2)(3)		7.16		4.22		11.82		10.45		4.71

Total tenant improvement, leasing commission, and tenant concession costs psf	$	20.71	$	34.22	$	14.17	$	52.74	$	10.58

Total
Number of renewals/leases		23		22		21		19		20
Square feet		350,815		466,259		253,942		326,968		602,519
Tenant improvement costs per square foot (2)	$	75.14	$	19.00	$	10.09	$	59.07	$	56.05
Leasing commission costs per square foot (2)		11.74		6.29		3.19		5.35		11.87
Tenant concession costs per square foot (2)(3)		3.64		21.95		6.55		4.05		9.61

Total tenant improvement, leasing commission, and tenant concession costs psf	$	90.52	$	47.24	$	19.83	$	68.47	$	77.53

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

(2)	Based on management estimates. Assumes all tenant improvement, leasing commission, and tenant concession costs 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 both rent concessions due to free or discounted rent periods and lease incentives paid to tenants.

(4)	Includes pre-leasing activity and retained tenants that have relocated to new space or expanded into new space within the Company’s portfolio. For definitions of first and second generation leases, see page 34.

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NON-GAAP FINANCIAL MEASURE DEFINITIONS

JUNE 30, 2012

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), Core Funds from Operations (CFFO), and Adjusted Funds from Operations (AFFO)

We present funds from operations, or FFO, core funds from operations, or CFFO, 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, CFFO, 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. As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, impairment charges on depreciable real estate, real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.

We calculate CFFO by adding acquisition-related expenses to FFO. We calculate AFFO by adding to CFFO: (a) non-cash revenues and expenses, (b) recurring capital expenditures and second generation tenant improvements, and (c) leasing commissions.

Our computation of FFO, CFFO and AFFO may differ from the methodology for calculating FFO, CFFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO, CFFO and AFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO, CFFO 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, CFFO 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, (b) impairments, (c) dividends payable on and cost on redemption of our series A preferred stock, (d) non-cash adjustments for marketable securities, (e) gains or losses from sales of real estate, and (f) acquisition-related expenses. 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.

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DEFINITIONS

JUNE 30, 2012

Property Status

Stabilized

Represents operating properties that are more than 90% leased.

Lease up

Represents operating properties that are less than 90% leased.

Redevelopment

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

Pre-development

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

Development

Represents properties that we are currently developing through ground up construction.

Development Potential

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

Lease Type

First Generation

Leases on space which, in management’s evaluation, require significant improvements to prepare or condition the premises for its intended purpose or enhance the value of the property. This generally includes capital expenditures for development, redevelopment or repositioning a property.

Second Generation

Leases which are not considered by management to be first generation leases.

Recurring Capital Expenditures

Recurring capital expenditures exclude (1) capital improvements that were taken into consideration when underwriting the purchase of a building, (2) items associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building, incurred to prepare or condition the premises for its intended purpose (for example, from office to laboratory) or (4) capital improvements that represent an addition to the property rather than the replacement of property, plant, or equipment.

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