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	d481682d8k.htm
EX-99.1 - PRESS RELEASE ISSUED BY BIOMED REALTY TRUST, INC. - BioMed Realty Trust Inc	d481682dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

DECEMBER 31, 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

DECEMBER 31, 2012


	Page			Page
Fourth 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 and Other
Capitalization Summary		7	Capital Improvements		24
Portfolio Summary		8	Capital Expenditures		25
Consolidated Balance Sheets		9	Property Listing - Unconsolidated Partnerships		26
Consolidated Statements of Operations		10	Lease Expirations		27
Balance Sheet / Operations Statement Detail		11	Expirations by Market		28
FFO, CFFO and AFFO		12	10 Largest Tenants		29
FFO, CFFO and AFFO per Share		13	Same Property Analysis		30
Reconciliation of EBITDA and Adjusted EBITDA		14	Acquisitions / Dispositions		31
Reconciliation of Net Operating Income		15	Leasing Activity		32
Interest Expense		16	Tenant Improvements, Leasing Commissions
Coverage Ratios		17	and Tenant Concessions		33
Debt Summary		18	Non-GAAP Financial Measure Definitions		34
Debt Maturities		19	Definitions		35

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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FOURTH QUARTER HIGHLIGHTS

DECEMBER 31, 2012

•

Executed 30 leasing transactions during the quarter representing approximately 624,900 square feet, driving the total operating portfolio leased percentage on a weighted-average basis to approximately 92.1% at quarter end, comprised of:

•

13 new leases totaling approximately 256,600 square feet, highlighted by:

•

a lease expansion with Ironwood Pharmaceuticals, Inc. for 93,000 square feet at the company’s 301 Binney Street property in Cambridge, Massachusetts; and

•

a lease expansion with Regeneron Pharmaceuticals, Inc. for an additional approximately 80,500 square feet at The Landmark at Eastview campus in Tarrytown, New York.

•

17 lease renewals totaling approximately 368,300 square feet, highlighted by:

•

a lease extension with Ironwood Pharmaceuticals, Inc. for the balance of the approximately 210,300 square feet currently leased at the 301 Binney Street property through January 31, 2018; and

•

a lease extension with NuGen Technologies, Inc. for approximately 47,900 square feet at the company’s Industrial Road property in San Carlos, California.

•

Increased funds from operations (FFO) for the quarter by 20.0% to $0.36 per diluted share, as compared to $0.30 per diluted share in the fourth quarter of 2011.

•

Increased adjusted funds from operations (AFFO) for the quarter by 17.9% to $0.33 per diluted share, as compared to $0.28 per diluted share in the fourth quarter of 2011.

•

Increased same property net operating income on a cash basis for the period by 6.1% and the same property leased percentage increased by 5.7% as compared to the same period in 2011.

•

Generated total revenues for the quarter of $138.8 million, up 23.9% from $112.0 million in the same period in 2011 and the highest in the company’s history. Rental revenues for the quarter increased by 22.5% to $104.0 million from $84.9 million in the same period in 2011, the highest in the company’s history.

•

Reported net income available to common stockholders for the quarter of $4.5 million, or $0.03 per diluted share.

About Biomed Realty Trust

BioMed Realty delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty 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, 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.

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INVESTOR INFORMATION

DECEMBER 31, 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	Executive Vice President,	Managing Director,
Daniel M. Bradbury	Chief Executive Officer	Asset Management	BioMed Ventures
Barbara R. Cambon	R. Kent Griffin, Jr.	Jonathan P. Klassen	Stephen A. Willey
Edward A. Dennis, Ph.D.	President and	Senior Vice President,	Vice President,
Richard I. Gilchrist	Chief Operating Officer	General Counsel and Secretary	Chief Accounting Officer
Gary A. Kreitzer	Gary A. Kreitzer	John P. Bonanno	Janice L. Kameir
Theodore D. Roth	Executive Vice President,	Senior Vice President,	Vice President, Human Resources
M. Faye Wilson	Director	Leasing & Development	Robert M. Sistek
	Matthew G. McDevitt	Kevin M. Simonsen	Vice President, Finance
	Executive Vice President,	Vice President,	William F. X. Kane
	Real Estate	Real Estate Counsel	Vice President,
	Greg N. Lubushkin		Leasing & Development
	Chief Financial Officer

Tentative Schedule for Quarterly Results
First Quarter 2013	May 2, 2013
Second Quarter 2013	August 1, 2013
Third Quarter 2013	October 31, 2013
Fourth Quarter 2013	February 6, 2014

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EQUITY RESEARCH COVERAGE

DECEMBER 31, 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

Goldman Sachs	Matthew Rand Andrew Rosivach	(212) 902-4227 (212) 902-2796	matthew.rand@gs.com andrew.rosivach@gs.com

Green Street Advisors	Jeff Theiler John Hornbeak	(949) 640-8780	jtheiler@greenst.com jhornbeak@greenst.com

Jefferies & Co.	Omotayo Okusanya David Shamis	(212) 336-7076 (212) 284-1796	tokusanya@jefferies.com dshamis@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 Vance H. Edelson	(415) 576-2627 (212) 761-0078	paul.b.morgan@morganstanley.com vance.edelson@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.	Mathew R. Spencer	(414) 298-5053	mspencer@rwbaird.com

Stifel, Nicolaus & Company, Inc.	Daniel Bernstein Seth P. Cohn	(443) 224-1351 (443) 224-1354	bernsted@stifel.com cohns@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

DECEMBER 31, 2012

(In thousands, except per share and ratio amounts)


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Selected Operating Data
Total revenues	$	138,771		$	134,537		$	124,848		$	120,012		$	111,958
EBITDA (1)		85,018			81,773			63,302			66,485			71,980
Adjusted EBITDA (1)		88,784			85,646			79,571			75,291			72,011
Net operating income - cash basis (2)		92,728			92,032			86,800			83,432			75,140
General and administrative expense		10,608			10,226			8,576			8,614			9,169
Acquisition-related expenses		22			176			12,245			633			309
Capitalized interest		2,268			1,926			2,090			2,360			2,260
Interest expense, net		26,745			26,817			23,825			22,219			21,725
Operating margin (3)		70.9	%		70.8	%		70.3	%		69.4	%		71.2	%
General and administrative expense / Total revenues		7.6	%		7.6	%		6.9	%		7.2	%		8.2	%
Change in same property net operating income - cash basis (4)		6.1	%		7.7	%		6.4	%		4.3	%		2.2	%
Net income/(loss) available to common stockholders		4,516			2,758			(8,713	)		(1,339	)		12,058
Net income/(loss) per share - diluted	$	0.03		$	0.02		$	(0.06	)	$	(0.01	)	$	0.08
FFO - diluted (5)		59,546			56,166			40,680			50,197			46,880
FFO per share - diluted (5)	$	0.36		$	0.34		$	0.24		$	0.30		$	0.30
CFFO - diluted (5)		59,568			56,342			52,925			50,830			47,189
CFFO per share - diluted (5)	$	0.36		$	0.34		$	0.32		$	0.30		$	0.30
AFFO - diluted (5)		55,004			55,641			55,334			50,472			44,247
AFFO per share - diluted (5)	$	0.33		$	0.33		$	0.33		$	0.30		$	0.28
Dividend per share - common stock	$	0.235		$	0.215		$	0.215		$	0.215		$	0.20
CFFO payout ratio (6)		65.3	%		63.2	%		67.2	%		71.7	%		66.7	%
AFFO payout ratio (6)		71.2	%		65.2	%		65.2	%		71.7	%		71.4	%

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(1)	For definitions and discussion of EBITDA and adjusted EBITDA, see page 34. 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)	Compared to the same period in the prior year. See page 30 for detail.

(5)	For definitions and discussion of FFO, CFFO and AFFO, see page 34. For a quantitative reconciliation of the differences between FFO, CFFO, AFFO and net income available to common stockholders, see pages 12 and 13.

(6)	See page 13 for detail of the CFFO and AFFO payout ratios.

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CAPITALIZATION SUMMARY

DECEMBER 31, 2012

(In thousands, except per share and ratio amounts)


		12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Capitalization
Total common shares outstanding			154,328			154,335			154,184			154,163			154,101
Total units outstanding (1)			2,933			2,943			2,943			2,957			2,980

Total common shares and units outstanding			157,261			157,278			157,127			157,120			157,081
Common share price at quarter end		$	19.33		$	18.72		$	18.68		$	18.98		$	18.08

Equity value at quarter end		$	3,039,847		$	2,944,240		$	2,935,122		$	2,982,134		$	2,840,033
Preferred stock at liquidation value			198,000			198,000			198,000			198,000			198,000
Consolidated debt			2,170,983			2,142,405			2,106,021			1,812,258			1,682,578

Total capitalization		$	5,408,830		$	5,284,645		$	5,239,143		$	4,992,392		$	4,720,611

Debt / Total assets			44.9	%		44.3	%		43.9	%		39.9	%		38.0	%
Debt / Total gross assets			39.9	%		39.7	%		39.6	%		36.0	%		34.5	%
Debt / Total capitalization			40.1	%		40.5	%		40.2	%		36.3	%		35.6	%
Coverage Ratios (2)
Debt / Adjusted EBITDA			6.1			6.2			6.6			6.0			5.8
Interest coverage			3.7			3.6			3.8			3.8			3.7
Fixed charge coverage			3.0			2.9			3.0			3.0			2.8
Total Consolidated Debt
Secured debt / Total gross assets			10.5	%		10.7	%		10.3	%		11.1	%		12.0	%
Floating rate debt / Total debt			24.1	%		23.0	%		22.7	%		23.5	%		15.9	%
Adjusted floating rate debt / Total debt (3)			7.4	%		6.1	%		13.2	%		12.5	%		—
Unencumbered real estate / Total real estate			77.0	%		76.8	%		77.0	%		75.2	%		73.7	%
Unencumbered CABR / Total CABR (4)			79.3	%		79.1	%		79.3	%		77.9	%		73.0	%
Unsecured line of credit capacity		$	632,000		$	650,500		$	658,590		$	723,090		$	481,090

Bond Covenants (5)	Requirements
Total outstanding debt / Total assets	Must be £ 60%		41.1	%		41.3	%		41.2	%		37.2	%		35.7	%
Secured debt / Total assets	Must be £ 40%		10.8	%		11.0	%		10.7	%		11.5	%		12.5	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		3.0			2.9			2.9			3.2			3.1
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		260	%		259	%		258	%		299	%		323	%
Unencumbered assets / Unsecured debt - Notes due 2016, Notes due 2022	Must be ³ 150%		257	%		257	%		255	%		296	%		320	%

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

(2)	For discussion of coverage ratios, see page 34. 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 current annualized base rent (CABR) by market, 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

DECEMBER 31, 2012


	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased % (1)
	(In thousands)
Stabilized (2)	$	3,569,603		111		8,482,603		99.4	%
Lease up (2)		1,084,068		47		4,040,095		68.1	%

Total operating portfolio	$	4,653,671		158		12,522,698		92.1	%


Redevelopment (3)	$	47,508		4		196,867		42.5	%
Pre-Development (3)		74,015		—		696,000		—
Unconsolidated partnership portfolio (4)		32,367		3		352,863		56.4	%
Development potential (3)		147,972		—		3,315,000		—

Total portfolio	$	4,955,533		165		17,083,428

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(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 35 for definitions of terms.

(3)	See page 24 for detail of the consolidated portfolio and page 35 for definitions of terms.

(4)	See page 26 for detail of the unconsolidated partnership portfolio.

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CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2012

(In thousands)


	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Assets
Investments in real estate, net	$	4,319,716		$	4,327,426		$	4,309,421		$	4,037,928		$	3,950,246
Investments in unconsolidated partnerships		32,367			31,955			32,562			32,901			33,389
Cash and cash equivalents		19,976			20,646			17,385			13,336			16,411
Accounts receivable, net		4,507			7,128			4,241			4,426			5,141
Accrued straight-line rents, net		152,096			144,975			139,346			134,371			130,582
Deferred leasing costs, net		172,363			180,925			185,354			164,002			157,255
Other assets		133,454			118,052			111,383			158,285			135,521

Total assets	$	4,834,479		$	4,831,107		$	4,799,692		$	4,545,249		$	4,428,545

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	571,652		$	574,497		$	550,704		$	559,111		$	587,844
Exchangeable senior notes		180,000			180,000			180,000			180,000			180,000
Unsecured senior notes, net		894,177			893,955			893,737			645,749			645,581
Unsecured senior term loan		405,456			405,216			400,000			400,000			—
Unsecured line of credit		118,000			87,000			78,000			26,000			268,000
Accounts payable, accrued expenses and other liabilities		180,653			178,706			157,829			156,669			134,924

Total liabilities		2,349,938			2,319,374			2,260,270			1,967,529			1,816,349
Equity:
Stockholders’ equity:
Preferred stock		191,469			191,469			191,469			191,469			191,469
Common stock		1,543			1,543			1,542			1,541			1,541
Additional paid-in capital		2,781,849			2,779,035			2,776,046			2,773,248			2,773,994
Accumulated other comprehensive loss, net		(54,725	)		(56,988	)		(57,326	)		(58,882	)		(60,138	)
Dividends in excess of earnings		(443,280	)		(411,529	)		(381,105	)		(339,243	)		(304,759	)

Total stockholders’ equity		2,476,856			2,503,530			2,530,626			2,568,133			2,602,107
Noncontrolling interests		7,685			8,203			8,796			9,587			10,089

Total equity		2,484,541			2,511,733			2,539,422			2,577,720			2,612,196

Total liabilities and equity	$	4,834,479		$	4,831,107		$	4,799,692		$	4,545,249		$	4,428,545

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CONSOLIDATED STATEMENTS OF OPERATIONS

DECEMBER 31, 2012

(In thousands, except share and per share data)


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Revenues:
Rental	$	103,978		$	101,467		$	95,708		$	91,475		$	84,854
Tenant recoveries		31,638			31,765			28,939			28,453			26,098
Other revenue		3,155			1,305			201			84			1,006

Total revenues		138,771			134,537			124,848			120,012			111,958

Expenses:
Rental operations		39,502			38,944			37,044			36,729			31,899
Depreciation and amortization		52,963			51,372			47,575			44,934			36,670
General and administrative		10,608			10,226			8,576			8,614			9,169
Acquisition-related expenses		22			176			12,245			633			309

Total expenses		103,095			100,718			105,440			90,910			78,047

Income from operations		35,676			33,819			19,408			29,102			33,911
Equity in net loss of unconsolidated partnerships		(379	)		(339	)		(317	)		(355	)		(640	)
Interest expense, net		(26,745	)		(26,817	)		(23,825	)		(22,219	)		(21,725	)
Other (expense)/income		(292	)		(208	)		(549	)		174			4,244

Income/(loss) from continuing operations		8,260			6,455			(5,283	)		6,702			15,790
Income/(loss) from discontinued operations		—			—			49			(4,420	)		163

Net income/(loss)		8,260			6,455			(5,234	)		2,282			15,953
Net (income)/loss attributable to noncontrolling interests		(93	)		(46	)		172			30			(244	)

Net income/(loss) attributable to the Company		8,167			6,409			(5,062	)		2,312			15,709
Preferred stock dividends		(3,651	)		(3,651	)		(3,651	)		(3,651	)		(3,651	)

Net income/(loss) available to common stockholders	$	4,516		$	2,758		$	(8,713	)	$	(1,339	)	$	12,058

Income/(loss) from continuing operations per share available to common stockholders:
Basic and diluted earnings per share	$	0.03		$	0.02		$	(0.06	)	$	0.02		$	0.08

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

Net income/(loss) per share available to common stockholders:
Basic and diluted earnings per share	$	0.03		$	0.02		$	(0.06	)	$	(0.01	)	$	0.08

Weighted-average common shares outstanding:
Basic		152,790,669			152,785,451			152,775,422			152,659,258			140,909,345

Diluted		155,728,210			155,728,209			152,775,422			155,625,204			143,889,324

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

DECEMBER 31, 2012

(In thousands)


	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Restricted cash	$	3,554		$	3,443		$	2,485		$	4,830		$	5,662
Real estate held for sale		—			—			—			28,000			—
Acquired above-market leases, net		18,099			20,234			22,292			23,670			26,318
Acquired below-market ground lease, net		11,368			11,426			11,484			11,542			11,600
Deferred loan costs, net		17,512			18,878			19,476			18,445			16,253
Lease incentives, net		21,741			21,990			21,925			24,778			22,951
Construction loan receivable, net (1)		21,695			1,275			1,275			—			—
Other		39,485			40,806			32,446			47,020			52,737

Other assets	$	133,454		$	118,052		$	111,383		$	158,285		$	135,521

Security deposits	$	12,417		$	12,296		$	12,501		$	11,941		$	11,907
Dividends and distributions payable		40,607			37,465			37,433			37,431			35,067
Accounts payable, accrued expenses and other liabilities		114,124			114,533			95,123			100,689			81,441
Derivative instruments		5,284			5,702			3,701			289			—
Acquired below-market leases, net		8,221			8,710			9,071			6,319			6,509

Accounts payable, accrued expenses and other liabilities	$	180,653		$	178,706		$	157,829		$	156,669		$	134,924

	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Lease termination revenue	$	2,483		$	935		$	81		$	32		$	890
Construction loan revenue		387			326			149			—			—
Other revenue		285			44			(29	)		52			116

Other revenue	$	3,155		$	1,305		$	201		$	84		$	1,006

Rental operations expenses	$	26,753		$	26,480		$	24,583		$	24,673		$	20,888
Real estate taxes		12,749			12,464			12,461			12,056			11,011

Rental operations	$	39,502		$	38,944		$	37,044		$	36,729		$	31,899

(Loss)/gain on extinguishment of debt	$	(99	)	$	—		$	34		$	182		$	51
Gain on revaluation of acquired unconsolidated partnerships		—			—			—			—			4,679
Non-cash adjustment for marketable securities		—			—			(545	)		—			(506	)
(Loss)/gain on derivative instruments		(1	)		(1	)		—			(8	)		20
Realized gain on foreign currency transactions		16			40			—			—			—
Income tax expense		(208	)		(247	)		(38	)		—			—

Other (expense)/income	$	(292	)	$	(208	)	$	(549	)	$	174		$	4,244

(1)	Represents funding of draws on a $355 million construction loan secured by first priority mortgages on a 1.1 million square foot laboratory, office and retail development project located in Boston, Massachusetts, of which the Company’s funding obligation is $255 million.

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FFO, CFFO AND AFFO (1)

DECEMBER 31, 2012

(In thousands)


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Reconciliation of net income/(loss) available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income/(loss) available to common stockholders	$	4,516		$	2,758		$	(8,713	)	$	(1,339	)	$	12,058
Adjustments:
Impairment loss		—			—			—			4,552			—
Gain on revaluation of acquired unconsolidated partnerships		—			—			—			—			(4,679	)
Noncontrolling interests in operating partnership		86			53			(166	)		(26	)		252
Depreciation & amortization - unconsolidated partnerships		323			323			323			323			826
Depreciation & amortization - consolidated entities		52,963			51,372			47,575			44,934			36,670
Depreciation & amortization - consolidated entities - discontinued operations		—			—			—			92			92
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(30	)		(28	)		(27	)		(27	)		(27	)

Funds from operations (FFO) - basic	$	57,858		$	54,478		$	38,992		$	48,509		$	45,192
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	59,546		$	56,166		$	40,680		$	50,197		$	46,880

Acquisition-related expenses		22			176			12,245			633			309

FFO excluding acquisition-related expenses (CFFO) - diluted	$	59,568		$	56,342		$	52,925		$	50,830		$	47,189


Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements (3)		(5,738	)		(2,739	)		(1,716	)		(4,629	)		(3,201	)
Leasing commissions		(1,476	)		(2,001	)		(1,335	)		(1,419	)		(1,192	)
Gain on extinguishment of debt		(20	)		—			(34	)		(182	)		(51	)
Loss/(gain) on derivative instruments		1			1			—			8			(20	)
Non-cash adjustment for marketable securities		—			—			545			—			506
Amortization of deferred interest costs		1,724			1,730			1,736			1,742			1,748
Amortization of deferred loan costs		1,354			1,255			1,225			1,035			1,019
Amortization of fair-value of debt acquired		(159	)		(178	)		(130	)		(231	)		(327	)
Amortization of debt discounts		222			218			172			168			170
Amortization of lease incentives		576			561			659			1,173			599
Depreciation included in general and administrative expense		510			483			455			442			387
Non-cash equity compensation		2,860			3,094			2,887			2,689			2,029
Straight line rents		(6,330	)		(5,288	)		(4,300	)		(3,454	)		(6,701	)
Share of unconsolidated partnership adjustments (4)		34			26			26			1			(10	)
Fair-value lease revenue		1,878			2,137			2,219			2,299			2,102

AFFO - diluted	$	55,004		$	55,641		$	55,334		$	50,472		$	44,247

(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 34.

(2)

The calculations of FFO, CFFO and AFFO 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, CFFO and AFFO per diluted share.

(3)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. Excludes first generation tenant improvements. For definitions of recurring capital expenditures and first and second generation leases, see page 35.

(4)	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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FFO, CFFO AND AFFO PER SHARE (1)

DECEMBER 31, 2012

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


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
FFO - basic	$	57,858		$	54,478		$	38,992		$	48,509		$	45,192
FFO - diluted		59,546			56,166			40,680			50,197			46,880
CFFO - diluted		59,568			56,342			52,925			50,830			47,189
AFFO - diluted		55,004			55,641			55,334			50,472			44,247
FFO per share - basic	$	0.37		$	0.35		$	0.25		$	0.31		$	0.31
FFO per share - diluted (2)		0.36			0.34			0.24			0.30			0.30
CFFO per share - diluted (2)		0.36			0.34			0.32			0.30			0.30
AFFO per share - diluted (2)		0.33			0.33			0.33			0.30			0.28
Dividends and distributions declared per common share	$	0.235		$	0.215		$	0.215		$	0.215		$	0.20

CFFO payout ratio		65.3	%		63.2	%		67.2	%		71.7	%		66.7	%
AFFO payout ratio		71.2	%		65.2	%		65.2	%		71.7	%		71.4	%
Weighted-average common shares and units outstanding diluted (3)		157,265,242			157,223,682			157,111,463			157,108,910			145,350,296
Dilutive effect of exchangeable senior notes due 2030 (2)		10,259,496			10,127,232			10,127,232			10,127,232			10,017,858

Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		167,524,738			167,350,914			167,238,695			167,236,142			155,368,154

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(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 34.

(2)

(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 December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011 include 1,537,032, 1,495,473, 1,388,901, 1,483,706 and 1,460,972 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

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RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1)

DECEMBER 31, 2012

(In thousands)


	Three Months Ended
	12/31/12		9/30/12		6/30/12			3/31/12			12/31/11
Reconciliation of net income/(loss) available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA:
Net income/(loss) available to common stockholders	$	4,516	$	2,758	$	(8,713	)	$	(1,339	)	$	12,058
Interest expense, net		26,745		26,817		23,825			22,219			21,725
Interest expense - unconsolidated partnerships		263		256		254			256			609
Income tax expense		208		247		38			—			—
Depreciation & amortization - consolidated entities		52,963		51,372		47,575			44,934			36,670
Depreciation & amortization - discontinued operations		—		—		—			92			92
Depreciation & amortization - unconsolidated partnerships		323		323		323			323			826

EBITDA		85,018		81,773		63,302			66,485			71,980
Noncontrolling interests		93		46		(172	)		(30	)		244
Impairment loss		—		—		—			4,552			—
Preferred dividends		3,651		3,651		3,651			3,651			3,651
Non-cash adjustment for marketable securities		—		—		545			—			506
Gain on revaluation of acquired unconsolidated partnerships		—		—		—			—			(4,679	)
Acquisition-related expenses		22		176		12,245			633			309
Adjusted EBITDA	$	88,784	$	85,646	$	79,571		$	75,291		$	72,011

(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 34.

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RECONCILIATION OF NET OPERATING INCOME (1)

DECEMBER 31, 2012

(In thousands, except ratio amounts)


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Net income/(loss)	$	8,260		$	6,455		$	(5,234	)	$	2,282		$	15,953
(Income)/loss from discontinued operations		—			—			(49	)		4,420			(163	)
Equity in net loss of unconsolidated partnerships		379			339			317			355			640
Interest expense, net		26,745			26,817			23,825			22,219			21,725
Other expense/(income)		292			208			549			(174	)		(4,244	)

Income from operations		35,676			33,819			19,408			29,102			33,911
Depreciation and amortization		52,963			51,372			47,575			44,934			36,670
General and administrative		10,608			10,226			8,576			8,614			9,169
Acquisition-related expenses		22			176			12,245			633			309

Consolidated net operating income	$	99,269		$	95,593		$	87,804		$	83,283		$	80,059

Revenues:
Rental	$	103,978		$	101,467		$	95,708		$	91,475		$	84,854
Tenant recoveries		31,638			31,765			28,939			28,453			26,098
Other revenue (2)		3,155			1,305			201			84			1,006

Total revenues		138,771			134,537			124,848			120,012			111,958
Expenses:
Rental operations		39,502			38,944			37,044			36,729			31,899

Consolidated net operating income	$	99,269		$	95,593		$	87,804		$	83,283		$	80,059

Consolidated net operating income - cash basis (3)	$	92,728		$	92,032		$	86,800		$	83,432		$	75,140

Operating margin (4)		70.9	%		70.8	%		70.3	%		69.4	%		71.2	%
Operating expense recovery (5)		80.1	%		81.6	%		78.1	%		77.5	%		81.8	%

(1)	For a definition and discussion of net operating income, see page 34.

(2)	Includes lease termination income, see page 11 for detail.

(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

DECEMBER 31, 2012

(In thousands)


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Mortgage notes payable	$	10,103		$	10,077		$	9,882		$	10,275		$	10,520
Exchangeable senior notes		1,688			1,688			1,688			1,688			1,698
Unsecured senior notes		10,334			10,334			7,767			7,678			7,678
Unsecured senior term loan		2,039			2,022			1,911			42			—
Unsecured line of credit		417			346			533			1,508			808
Line of credit fees		712			729			664			664			671
Derivative instruments		579			522			467			10			—

Interest expense, net - cash basis	$	25,872		$	25,718		$	22,912		$	21,865		$	21,375

Non-cash interest expense:
Amortization of fair-value of debt acquired		(159	)		(178	)		(130	)		(231	)		(327	)
Amortization of debt discounts		222			218			172			168			170
Amortization of deferred loan costs		1,354			1,255			1,225			1,035			1,019
Amortization of deferred interest costs		1,724			1,730			1,736			1,742			1,748
Capitalized interest		(2,268	)		(1,926	)		(2,090	)		(2,360	)		(2,260	)

Interest expense, net	$	26,745		$	26,817		$	23,825		$	22,219		$	21,725

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COVERAGE RATIOS (1)

DECEMBER 31, 2012

(In thousands, except ratio amounts)


	Three Months Ended
	12/31/12			9/30/12			6/30/12			3/31/12			12/31/11
Interest coverage ratio
Adjusted EBITDA	$	88,784		$	85,646		$	79,571		$	75,291		$	72,011
Interest expense:
Interest expense, net		26,745			26,817			23,825			22,219			21,725
Interest expense - unconsolidated partnerships		263			256			254			256			609
Amortization of deferred interest costs		(1,724	)		(1,730	)		(1,736	)		(1,742	)		(1,748	)
Amortization of deferred loan costs		(1,354	)		(1,255	)		(1,225	)		(1,035	)		(1,019	)
Amortization of debt discounts		(222	)		(218	)		(172	)		(168	)		(170	)
Amortization of fair-value of debt acquired		159			178			130			231			327

Total interest expense	$	23,867		$	24,048		$	21,076		$	19,761		$	19,724

Interest coverage ratio		3.7			3.6			3.8			3.8			3.7

Fixed charge coverage ratio
Adjusted EBITDA	$	88,784		$	85,646		$	79,571		$	75,291		$	72,011
Fixed charges:
Interest expense, net		26,745			26,817			23,825			22,219			21,725
Interest expense - unconsolidated partnerships		263			256			254			256			609
Amortization of deferred interest costs		(1,724	)		(1,730	)		(1,736	)		(1,742	)		(1,748	)
Amortization of deferred loan costs		(1,354	)		(1,255	)		(1,225	)		(1,035	)		(1,019	)
Amortization of debt discounts		(222	)		(218	)		(172	)		(168	)		(170	)
Amortization of fair-value of debt acquired		159			178			130			231			327
Principal payments		2,063			1,975			1,918			2,092			2,141
Preferred dividends		3,651			3,651			3,651			3,651			3,651

Total fixed charges	$	29,581		$	29,674		$	26,645		$	25,504		$	25,516

Fixed charge coverage ratio		3.0			2.9			3.0			3.0			2.8

(1)	For a discussion of coverage ratios, see page 34.

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DEBT SUMMARY

DECEMBER 31, 2012

(Dollars in thousands)


	Stated Rate			Effective Rate			Principal Balance		Unamortized Premium / (Discount)			Carrying Value		Maturity Date
Consolidated Debt:
Fixed Rate Mortgages:
9900 Belward Campus Drive		5.64	%		3.99	%	$	10,767	$	757		$	11,524		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		13,260		928			14,188		07/17
Center for Life Science \| Boston		7.75	%		7.75	%		338,447		—			338,447		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		60,164		2,440			62,604		12/18
Shady Grove Road		5.97	%		5.97	%		144,889		—			144,889		09/16

Total / Weighted-Average on Fixed Rate Mortgages		7.06	%		6.89	%		567,527		4,125			571,652
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		(1,711	)		398,289		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(2,016	)		247,984		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(2,096	)		247,904		07/22

Subtotal / Weighted-Average on Unsecured Senior Notes		4.59	%		4.73	%		900,000		(5,823	)		894,177

Total / Weighted-Average on Fixed Rate Debt		5.35	%		5.37	%		1,647,527		(1,698	)		1,645,829
Variable Rate Debt:
Unsecured Senior Term Loan - U.S. Dollar (1)		1.86	%		2.64	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan - GBP (2)		2.15	%		2.39	%		161,860		—			161,860		03/17
Unsecured Line of Credit (3)		1.76	%		1.76	%		118,000		—			118,000		07/15

Total / Weighted-Average on Variable Rate Debt		1.93	%		2.36	%		523,456		—			523,456

Total / Weighted-Average on Unsecured Debt		3.63	%		3.85	%		1,603,456		(5,823	)		1,597,633
Total / Weighted-Average on Consolidated Debt		4.53	%		4.64	%	$	2,170,983	$	(1,698	)	$	2,169,285

Share of Unconsolidated Partnership Debt:
PREI Secured Construction Loan (20%) (variable)		3.22	%		3.22	%		27,795		—			27,795		08/13

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.22	%		3.22	%		27,795		—			27,795
Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		4.51	%		4.62	%	$	2,198,778	$	(1,698	)	$	2,197,080

(1)

The Company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the unsecured senior term loan facility at 2.81% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings. Including the effect of these swaps, the weighted-average effective interest rate for the $243.6 million outstanding under the unsecured senior term loan facility was 2.64% at December 31, 2012.

(2)

On August 2, 2012, the Company amended the unsecured senior term loan facility and converted $156.4 million of outstanding borrowings into British pounds sterling equal to £100 million. The principal balance represents the dollar amount based on the exchange rate of $1.62 to £1.00 at the end of the quarter. The Company entered into interest rate swap agreements that effectively fix the interest rate on £100 million at 2.39% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings.

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

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DEBT MATURITIES

DECEMBER 31, 2012

(In thousands)

Weighted-average debt maturity is 5.6 years for consolidated debt (excluding extension options).


	2013		2014		2015		2016		2017		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	8,364	$	339,088	$	6,482	$	143,784	$	27,338	$	42,471	$	567,527

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		8,364		339,088		6,482		543,784		27,338		722,471		1,647,527
Variable rate debt:
Unsecured senior term loan - U.S. Dollar		—		—		—		—		243,596		—		243,596
Unsecured senior term loan - GBP		—		—		—		—		161,860		—		161,860
Unsecured line of credit		—		—		118,000		—		—		—		118,000

Total variable rate debt		—		—		118,000		—		405,456		—		523,456

Total consolidated debt	$	8,364	$	339,088	$	124,482	$	543,784	$	432,794	$	722,471	$	2,170,983

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	$	36,159	$	339,088	$	124,482	$	543,784	$	432,794	$	722,471	$	2,198,778

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(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

DECEMBER 31, 2012

(Shares in thousands)

Summary of Common Shares


	Three Months Ended
	12/31/12			09/30/12			06/30/12			03/31/12			12/31/11
Earnings per share
Weighted-average common shares outstanding		152,791			152,785			152,775			152,659			140,909
Weighted-average OP and LTIP units outstanding		2,937			2,943			—			2,966			2,980

Diluted common shares - EPS		155,728			155,728			152,775			155,625			143,889

Funds from operations
Weighted-average common shares outstanding		152,791			152,785			152,775			152,659			140,909
Weighted-average OP and LTIP units outstanding		2,937			2,943			2,948			2,966			2,980
Dilutive effect of restricted stock		1,537			1,496			1,389			1,484			1,461
Dilutive effect of exchangeable senior notes due 2030		10,260			10,127			10,127			10,127			10,018

Diluted common shares - FFO		167,525			167,351			167,239			167,236			155,368

Closing common shares, OP and LTIP units outstanding		157,261			157,278			157,127			157,120			157,081
Preferred shares outstanding		7,920			7,920			7,920			7,920			7,920
High price	$	19.68		$	19.94		$	20.30		$	19.65		$	18.95
Low price	$	18.19		$	18.10		$	17.52		$	17.72		$	15.44
Average closing price	$	19.07		$	18.81		$	18.71		$	18.65		$	17.68
Closing price	$	19.33		$	18.72		$	18.68		$	18.98		$	18.08
Dividends per share - annualized	$	0.94		$	0.86		$	0.86		$	0.86		$	0.80
Closing dividend yield - annualized		4.9	%		4.6	%		4.6	%		4.5	%		4.4	%

Dividends per Share
	12/31/12			09/30/12			06/30/12			03/31/12			12/31/11
Common Stock - BMR
Amount	$	0.235		$	0.215		$	0.215		$	0.215		$	0.20
Declared		December 12, 2012			September 14, 2012			June 15, 2012			March 15, 2012			December 14, 2011
Record		December 31, 2012			September 28, 2012			June 29, 2012			March 30, 2012			December 30, 2011
Paid		January 15, 2013			October 15, 2012			July 16, 2012			April 16, 2012			January 17, 2012
Preferred Stock - BMR PrA
Amount	$	0.46094		$	0.46094		$	0.46094		$	0.46094		$	0.46094
Declared		December 12, 2012			September 14, 2012			June 15, 2012			March 15, 2012			December 14, 2011
Record		December 31, 2012			September 28, 2012			June 29, 2012			March 30, 2012			December 30, 2011
Paid		January 15, 2013			October 15, 2012			July 16, 2012			April 16, 2012			January 17, 2012

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MARKET SUMMARY

DECEMBER 31, 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		2,965,171		$	159,620			36.3	%	$	53.83	$	171,425		33.8	%	$	57.81
San Francisco		2,237,448			64,113			14.6	%		28.65		77,141		15.2	%		34.48
Maryland		1,589,217			60,365			13.7	%		37.98		75,450		14.9	%		47.48
San Diego		1,840,037			59,552			13.6	%		32.36		74,377		14.7	%		40.42
New York / New Jersey		1,187,886			40,185			9.2	%		33.83		49,435		9.8	%		41.62
Pennsylvania		652,009			15,210			3.5	%		23.33		16,103		3.2	%		24.70
Seattle		248,263			12,038			2.7	%		48.49		14,144		2.8	%		56.97
University Related - Other		829,576			28,052			6.4	%		33.81		28,742		5.6	%		34.65

Total portfolio / weighted-average		11,549,607		$	439,135			100.0	%	$	38.02	$	506,817		100.0	%	$	43.88


	Percent Leased
Market	Total Operating Portfolio			Redevelopment (3)			Unconsolidated Partnership Portfolio (4)
Boston		97.6	%		—			45.0	%
San Francisco		79.3	%		—			—
Maryland		97.0	%		61.4	%		—
San Diego		92.0	%		—			100.0	%
New York / New Jersey		83.3	%		—			—
Pennsylvania		89.8	%		—			—
Seattle		67.8	%		—			—
University Related - Other		98.7	%		—			—

Total portfolio (5)		89.7	%		61.4	%		56.4	%

Total portfolio weighted-average leased % (6)		92.1	%		42.5	%		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)	See page 24 for detail of the consolidated portfolio and page 34 for definitions of terms.

(4)	See page 26 for detail of the unconsolidated partnership portfolio.

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

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

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

DECEMBER 31, 2012


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/12			9/30/12
	Boston
1	Albany Street	May 31, 2005	Stabilized		2		75,003		0.6	%		75,003		100.0	%		100.0	%
2	320 Bent Street	December 14, 2011	Stabilized		1		195,198		1.5	%		191,576		98.1	%		98.1	%
3	301 Binney Street	December 14, 2011	Stabilized		1		417,290		3.3	%		403,381		96.7	%		74.4	%
4	301 Binney Street Garage	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	%		32,842		50.7	%		29.7	%
6	Center for Life Science \| Boston	November 17, 2006	Stabilized		1		704,159		5.9	%		695,976		98.8	%		98.9	%
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	%		29,490		78.3	%		78.3	%
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	Stabilized		6		90,702		0.7	%		89,176		98.3	%		98.3	%
13	50 Hampshire Street	February 9, 2012	Stabilized		1		183,052		1.4	%		183,052		100.0	%		100.0	%
14	60 Hampshire Street	February 9, 2012	Stabilized		1		39,014		0.3	%		39,014		100.0	%		100.0	%
15	Kendall Crossing Apartments	December 14, 2011	Stabilized		1		37 Apts.		n/a			37 Apts.		94.5	%		100.0	%
16	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		2.7	%		346,535		99.2	%		99.2	%
17	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		2.4	%		302,919		100.0	%		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		2,909,300		23.2	%		2,839,106		97.6	%		93.9	%

	San Francisco
20	Ardentech Court	November 18, 2004	Stabilized		1		55,588		0.4	%		55,588		100.0	%		100.0	%
21	Ardenwood Venture (2)	June 14, 2006	Lease Up		1		72,500		0.6	%		60,339		83.2	%		77.6	%
22	Bayshore Boulevard	August 17, 2004	Stabilized		3		183,344		1.4	%		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	%		100.0	%
26	Dumbarton Circle	May 27, 2005	Stabilized		1		44,000		0.3	%		44,000		100.0	%		100.0	%
27	Gateway Business Park	October 26, 2010	Stabilized		6		284,013		2.2	%		268,048		94.4	%		99.7	%
28	Industrial Road	August 17, 2004	Stabilized		1		175,144		1.4	%		175,144		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	%		436,816		66.1	%		66.0	%
32	Pacific Research Center South	July 11, 2006	Lease Up		3		423,246		3.3	%		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				30		2,820,152		22.1	%		2,237,448		79.3	%		79.7	%

	Maryland
34	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.6	%		77,225		100.0	%		100.0	%
35	9900 Belward Campus Drive	July 18, 2012	Lease Up		1		49,317		0.4	%		41,324		83.8	%		83.8	%
36	9901 Belward Campus Drive	July 18, 2012	Stabilized		1		57,152		0.4	%		57,110		99.9	%		99.9	%
37	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.3	%		289,912		100.0	%		100.0	%
38	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.4	%		51,181		100.0	%		100.0	%
39	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		1.0	%		122,600		100.0	%		100.0	%
40	9708-9714 Medical Center Drive	May 3, 2010	Redevelopment		3		92,124		0.7	%		16,067		17.4	%		5.9	%
41	1701 / 1711 Research Boulevard	May 9, 2011	Redevelopment		1		104,743		0.8	%		104,743		100.0	%		100.0	%
42	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		5.0	%		635,058		100.0	%		100.0	%
43	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.7	%		91,592		100.0	%		100.0	%
44	50 West Watkins Mill Road	May 7, 2010	Lease Up		1		57,410		0.5	%		20,000		34.8	%		34.8	%
45	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.6	%		82,405		100.0	%		100.0	%

	Total Maryland				18		1,710,719		13.4	%		1,589,217		92.9	%		92.3	%

	San Diego
46	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
47	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.5	%		61,286		100.0	%		100.0	%
48	Coast 9	October 15, 2010	Lease Up		8		164,074		1.3	%		123,528		75.3	%		82.9	%
49	4570 Executive Drive	September 17, 2010	Lease Up		1		125,219		1.0	%		106,757		85.3	%		85.3	%
50	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.2	%		28,704		100.0	%		100.0	%
51	Gazelle Court	March 30, 2010	Stabilized		1		176,000		1.4	%		176,000		100.0	%		100.0	%

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

DECEMBER 31, 2012


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/12			9/30/12
	San Diego (Continued)
52	3525 John Hopkins Court	December 28, 2010	Stabilized		1		48,306		0.4	%		48,306		100.0	%		100.0	%
53	3545-3575 John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.6	%		61,106		84.6	%		75.0	%
54	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		1.5	%		196,557		100.0	%		100.0	%
55	6122-6126 Nancy Ridge Drive	April 25, 2012	Stabilized		1		68,000		0.5	%		68,000		100.0	%		100.0	%
56	6828 Nancy Ridge Drive	April 21, 2005	Stabilized		1		42,138		0.3	%		42,138		100.0	%		100.0	%
57	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.5	%		66,745		100.0	%		100.0	%
58	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.5	%		37,219		54.7	%		54.7	%
59	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		0.8	%		76,818		72.9	%		63.6	%
60	10240 Science Center Drive	September 23, 2010	Stabilized		1		49,347		0.4	%		49,347		100.0	%		100.0	%
61	10255 Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.4	%		53,740		100.0	%		100.0	%
62	Sorrento Plaza	December 18, 2010	Stabilized		2		31,184		0.2	%		31,184		100.0	%		100.0	%
63	Sorrento Valley Boulevard	December 7, 2006	Stabilized		1		54,924		0.4	%		54,924		100.0	%		100.0	%
64	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.3	%		35,940		100.0	%		100.0	%
65	Summers Ridge	June 8, 2012	Stabilized		—		—		n/a			—		100.0	%		100.0	%
66	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.6	%		81,204		100.0	%		100.0	%
67	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.7	%		94,866		100.0	%		100.0	%
68	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.8	%		104,870		100.0	%		100.0	%
69	Waples Street	March 1, 2005	Stabilized		1		50,055		0.4	%		50,055		100.0	%		100.0	%
70	Wateridge Circle	November 1, 2011	Lease Up		3		106,490		0.8	%		82,536		77.5	%		77.5	%

	Total San Diego				39		1,920,547		14.8	%		1,767,174		92.0	%		91.8	%

	New York / New Jersey
71	Ardsley Park	June 23, 2011	Stabilized		5		160,500		1.3	%		160,500		100.0	%		100.0	%
72	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.6	%		46,386		64.2	%		64.2	%
73	Landmark at Eastview	August 12, 2004	Lease Up		5		783,269		6.2	%		620,480		79.2	%		77.3	%
74	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		2.8	%		360,520		100.0	%		100.0	%
75	One Research Way	May 31, 2006	Lease Up		1		49,421		0.4	%		—		—			—

	Total New York / New Jersey				15		1,426,010		11.3	%		1,187,886		83.3	%		82.3	%

	Pennsylvania
76	Eisenhower Road	August 13, 2004	Stabilized		1		27,750		0.2	%		27,750		100.0	%		100.0	%
77	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.6	%		71,500		100.0	%		100.0	%
78	King of Prussia	August 11, 2004	Stabilized		5		374,387		2.9	%		374,387		100.0	%		100.0	%
79	Phoenixville Pike	May 5, 2005	Lease Up		1		104,400		0.8	%		90,518		86.7	%		86.7	%
80	Spring Mill Drive	July 20, 2006	Stabilized		1		76,561		0.6	%		76,561		100.0	%		100.0	%
81	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
82	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.5	%		—		—			—

	Total Pennsylvania				11		725,712		5.7	%		652,009		89.8	%		89.8	%

	Seattle
83	Elliott Avenue	August 24, 2004	Lease Up		1		151,194		1.2	%		90,222		59.7	%		42.6	%
84	530 Fairview Avenue	January 12, 2006	Stabilized		1		96,305		0.8	%		96,305		100.0	%		100.0	%
85	Monte Villa Parkway	August 17, 2004	Lease Up		1		51,000		0.4	%		19,108		37.5	%		37.5	%
86	217th Place	November 21, 2006	Lease Up		1		67,799		0.5	%		42,628		62.9	%		62.9	%

	Total Seattle				4		366,298		2.9	%		248,263		67.8	%		60.7	%

	University Related - Other
87	Granta Park	June 12, 2012	Stabilized		11		472,234		3.7	%		469,686		99.5	%		99.5	%
88	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.5	%		61,603		100.0	%		100.0	%
89	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.4	%		39,691		82.0	%		82.0	%
90	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.6	%		78,023		100.0	%		100.0	%
91	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.2	%		149,984		100.0	%		100.0	%
92	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	%		98.7	%

	Total				162		12,719,565		100.0	%		11,350,679		89.2	%		88.1	%

(1)	For a definition of Property Status, see page 35.

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

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REDEVELOPMENT, PRE-DEVELOPMENT AND OTHER CAPITAL IMPROVEMENTS

DECEMBER 31, 2012

(Dollars in thousands)


Property	Market		Rentable Square Feet		Percent Leased			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
Redevelopment:
9708-9714 Medical Center Drive		Maryland		92,124		17.4	%	$	29,400	$	29,400		Q1 2013
1701 / 1711 Research Blvd		Maryland		104,743		100.0	%		13,300		28,200		Q4 2013

Total / weighted-average				196,867		61.4	%	$	42,700	$	57,600
Other Capital Improvements (4)								$	71,800
Pre-Development:
Eccles Avenue		San Francisco		260,000		—		$	29,100
4775 / 4785 Executive Drive		San Diego		275,000		—			29,600
500 Fairview Avenue		Seattle		108,000		—			1,600
450 Kendall Street (Kendall G)		Boston		53,000		—			10,100

Total / weighted-average				696,000		—		$	70,400

Total								$	184,900


Additional Development Potential:	Estimated							Capitalized Interest
	Developable							3 Mo. Ended
Market	Square Feet							12/31/12 (5)
Boston		50,000							Redevelopment			$	630
San Francisco		1,346,000							Other Capital Improvements (4)				742
Maryland		674,000							Pre-Development				896

New York / New Jersey		964,000							Total			$	2,268

Pennsylvania		103,000
Seattle		40,000
University Related - Other		138,000

Total		3,315,000
Total Development Potential

(including Pre-Development)		4,011,000

(1)	Includes amounts paid for acquiring the property, landlord improvements, and tenant improvement allowances, but for Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through December 31, 2012.

(2)	Excludes costs associated with speculative leasing.

(3)	Management’s estimate of the time in which construction is substantially completed. A project is considered substantially complete and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity.

(4)	Includes improvements on operating properties, including major tenant improvement projects on properties which are not considered to be in Redevelopment or Pre-development during the three months ended December 31, 2012.

(5)	Interest was capitalized at an average rate of 5.22% during the three months ended December 31, 2012.

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CAPITAL EXPENDITURES

DECEMBER 31, 2012

(In thousands)


	Three Months Ended
	12/31/12		9/30/12		6/30/12		3/31/12		12/31/11

Development / Pre-Development	$	1,832	$	1,540	$	1,582	$	443	$	716
Redevelopment		1,411		2,429		8,117		11,006		6,316
Tenant improvements - first generation (1)		11,831		19,727		17,184		15,083		4,123
Recurring capital expenditures and second generation tenant improvements (1) (2)		5,738		2,739		1,716		4,629		3,201
Other capital		7,853		4,067		9,034		10,909		11,558

Total capital expenditures	$	28,665	$	30,502	$	37,633	$	42,070	$	25,914

(1)	For definitions of first and second generation leases, see page 35.

(2)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. Excludes first generation tenant improvements. For a definition of recurring capital expenditures, see page 35.

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PROPERTY LISTING – UNCONSOLIDATED PARTNERSHIPS

DECEMBER 31, 2012

(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

12/31/12

9/30/12

Market

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

100.0

Boston


	McKellar Court (2)			PREI			Total
Total assets	$	14,060		$	249,944		$	264,004
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	$	12,189		$	20,178		$	32,367
BioMed’s pro rata share of debt		—			27,795			27,795
BioMed ownership percentage		22	%		20	%		20	%

(1)	For a definition of Property Status, see page 35.

(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

DECEMBER 31, 2012

The weighted-average remaining lease term is 7.3 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		5,667		—		$	148		—		$	26.12	$	148		—		$	26.12
First quarter 2013		289,699		2.5	%		12,687		2.9	%		43.79		12,734		2.5	%		43.96
Second quarter 2013		162,457		1.4	%		4,958		1.1	%		30.52		4,976		1.0	%		30.63
Third quarter 2013		232,835		2.0	%		10,712		2.4	%		46.01		10,741		2.1	%		46.13
Fourth quarter 2013		42,887		0.4	%		720		0.2	%		16.79		720		0.1	%		16.79

2013		727,878		6.3	%		29,077		6.6	%		39.95		29,171		5.7	%		40.08
2014		742,266		6.4	%		21,584		4.9	%		29.08		21,748		4.3	%		29.30
2015		488,424		4.2	%		16,224		3.7	%		33.22		16,937		3.3	%		34.68
2016		1,005,967		8.7	%		37,246		8.5	%		37.03		40,105		7.9	%		39.87
2017		459,935		4.0	%		13,535		3.1	%		29.43		15,372		3.0	%		33.42
2018		1,714,946		14.8	%		71,716		16.3	%		41.82		78,494		15.5	%		45.77
2019		600,955		5.2	%		18,625		4.2	%		30.99		20,881		4.1	%		34.75
2020		797,026		6.9	%		31,498		7.2	%		39.52		31,491		6.2	%		39.51
2021		679,533		5.9	%		18,906		4.3	%		27.82		21,913		4.3	%		32.25
2022		587,791		5.1	%		14,135		3.2	%		24.05		17,792		3.5	%		30.27
Thereafter		3,739,219		32.5	%		166,441		38.0	%		44.51		212,765		42.2	%		56.90

Total / weighted-average		11,549,607		100.0	%	$	439,135		100.0	%	$	38.02	$	506,817		100.0	%	$	43.88

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(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

DECEMBER 31, 2012


	Leased Square Feet
Expiration	Boston		San Francisco		Maryland		San Diego		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		1,790		3,247		630		—		—		—		5,667
2013		210,347		209,879		11,839		185,665		22,274		61,703		24,673		1,498		727,878
2014		28,019		75,784		67,946		66,301		63,525		407,961		—		32,730		742,266
2015		36,527		73,484		7,546		288,417		—		44,382		—		38,068		488,424
2016		328,024		239,158		4,721		35,716		40,687		31,166		36,885		289,610		1,005,967
2017		87,784		119,923		95,747		80,398		64,693		—		11,390		—		459,935
2018		1,135,297		153,639		13,014		331,157		24,944		—		42,628		14,267		1,714,946
2019		23,115		133,571		186,550		81,204		—		—		49,664		126,851		600,955
2020		367,010		49,915		130,846		72,863		39,958		—		—		136,434		797,026
2021		16,634		250,306		39,505		8,365		132,933		71,500		—		160,290		679,533
2022		43,904		463,359		—		17,707		27,524		35,297		—		—		587,791
Thereafter		688,510		468,430		1,029,713		668,997		770,718		—		83,023		29,828		3,739,219

Total		2,965,171		2,237,448		1,589,217		1,840,037		1,187,886		652,009		248,263		829,576		11,549,607

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10 LARGEST TENANTS

DECEMBER 31, 2012

BioMed’s properties were leased to 214 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	GlaxoSmithKline plc (2)		924,970		8.0	%	$	44,483	$	48.09		10.1	%		June 2026
2	Vertex Pharmaceuticals Incorporated (3)		685,286		5.9	%		34,260		49.99		7.8	%		Multiple
3	Beth Israel Deaconess Medical Center, Inc.		362,364		3.1	%		25,543		70.49		5.8	%		July 2023
4	Regeneron Pharmaceuticals, Inc.		632,550		5.5	%		25,528		40.36		5.8	%		July 2024
5	Elan Pharmaceuticals, Inc. (4)		382,977		3.3	%		24,807		64.77		5.6	%		Multiple
6	Sanofi (5)		418,003		3.6	%		19,470		46.58		4.4	%		Multiple
7	Ironwood Pharmaceuticals, Inc.		303,259		2.6	%		15,291		50.42		3.5	%		February 2018
8	Children’s Hospital Corporation (6)		200,081		1.7	%		13,853		69.24		3.2	%		May 2023
9	Merck & Co., Inc. (7)		175,893		1.5	%		9,343		53.12		2.1	%		Multiple
10	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		3.2	%		9,002		24.04		2.0	%		April 2014

	Total / weighted-average (8)		4,459,770		38.4	%	$	221,580	$	49.68		50.3	%

(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)	The Company’s tenant is Human Genome Sciences (HGS), a wholly owned subsidiary of GlaxoSmithKline plc (GSK).

(3)	81,204 square feet are leased with a subsidiary of Vertex Pharmaceuticals Incorporated. 292,758 square feet expire January 2016, 20,608 square feet expire May 2017, 290,716 square feet expire May 2018 and 81,204 square feet expire January 2019.

(4)	122,992 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)	343,000 square feet expire August 2018 and 75,003 square feet expire October 2018.

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

(7)	This tenant guarantees rent on 30,589 square feet leased at Weston Parkway. 145,304 square feet expire September 2013 and 30,589 square feet expire January 2014.

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

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SAME PROPERTY ANALYSIS

DECEMBER 31, 2012

(Dollars in thousands)


	Three Months Ended
	12/31/12			12/31/11			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		11,603,751			11,603,751
Percent of total portfolio		88.8	%		96.2	%
Percent leased		88.1	%		82.4	%
Revenues:
Rental	$	92,975		$	88,445			5.1	%
Tenant recoveries		31,176			29,611			5.3	%

Total revenues		124,151			118,056			5.2	%
Expenses:
Rental operations		36,101			35,303			2.3	%

Same property net operating income (2)	$	88,050		$	82,753			6.4	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(3,577	)		(3,140	)		13.9	%

Same property net operating income - cash basis (2) (3)	$	84,473		$	79,613			6.1	%

Rental revenue - cash basis (3)	$	88,910		$	85,059			4.5	%

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(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 34. 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.

(4)	Compared to the same period in the prior year.

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ACQUISITIONS / DISPOSITIONS

DECEMBER 31, 2012


Acquisitions Detail for 2012:	Market	Closing Date	Rentable Square Feet (1)		Investment		Percent Leased at Acquisition

Property
					(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 (3)	San Diego	June 8, 2012		—		47,184		100.0	%
Granta Park	University Related - Other	June 12, 2012		472,234		196,044		99.5	%

Second quarter total				611,473	$	291,228		99.6	%

Third Quarter 2012
9900/9901 Belward Campus Drive	Maryland	July 18, 2012		106,469	$	26,170		92.5	%

Third quarter total				106,469	$	26,170		92.5	%

Fourth Quarter 2012
None
Total 2012 Acquisitions				1,004,820	$	436,398		93.3	%


Dispositions Detail for 2012:	Market	Closing Date	Rentable Square Feet (1)		Gross Proceeds

Property
					(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 or disposition.

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

(3)	Consists of two adjacent development sites. Concurrent with the acquisition, the Company signed a 20-year ground lease with Shire Regenerative Medicine, a subsidiary of Shire plc.

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LEASING ACTIVITY (1)

DECEMBER 31, 2012


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft		Pre-Leased Square Feet			Current Annualized Base Rent per Pre-Leased Sq Ft
Leased Square Feet as of September 30, 2012		11,405,091					55,565
Expirations		(464,913	)	$	40.46
Pre-leased delivery		25,049			21.52		(25,049	)	$	21.52
Renewals, amendments, and extensions		368,299			40.80
New leases - 1st generation (2)		149,987			41.06		—			—
New leases - 2nd generation (2)		66,094			21.63		40,495			25.11

Leased Square Feet as of December 31, 2012		11,549,607					71,011


	Three Months Ended
Leased Square Feet	12/31/12		9/30/12		6/30/12		3/31/12		12/31/11
Renewals, amendments, and extensions		368,299		176,655		87,383		70,894		112,795
New leases		256,576		190,705		263,432		395,365		141,147

Gross Leasing Activity		624,875		367,360		350,815		466,259		253,942

Net Absorption		144,516		115,493		186,911		210,313		66,673

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(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 35.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS AND TENANT CONCESSIONS

DECEMBER 31, 2012


	Three Months Ended
	12/31/12		9/30/12		6/30/12		3/31/12		12/31/11
Renewals, Amendments, and Extensions (1)
Number of renewals		17		6		7		6		7
Square feet		368,299		176,655		87,383		70,894		112,795
Tenant improvement costs per square foot (2)	$	1.23	$	21.68	$	0.17	$	10.31	$	—
Leasing commission costs per square foot (2)		3.54		6.23		1.15		2.99		1.96
Tenant concession costs per square foot (2) (3)		17.01		2.60		0.24		7.99		0.24

Total tenant improvement, leasing commission, and tenant concession costs psf	$	21.78	$	30.51	$	1.56	$	21.29	$	2.20

New Leases - 1st Generation (4)
Number of leases		5		8		8		8		5
Square feet		149,987		100,992		219,552		319,947		57,783
Tenant improvement costs per square foot (2)	$	61.97	$	1.14	$	118.40	$	18.98	$	42.91
Leasing commission costs per square foot (2)		7.25		7.77		17.19		7.84		8.26
Tenant concession costs per square foot (2) (3)		22.00		4.93		4.28		29.22		11.28

Total tenant improvement, leasing commission, and tenant concession costs psf	$	91.22	$	13.84	$	139.87	$	56.04	$	62.45

New Leases - 2nd Generation (4)
Number of leases		8		8		8		8		9
Square feet		106,589		89,713		43,880		75,418		83,364
Tenant improvement costs per square foot (2)	$	16.86	$	46.58	$	7.93	$	27.22	$	0.99
Leasing commission costs per square foot (2)		8.99		7.48		5.62		2.78		1.36
Tenant concession costs per square foot (2) (3)		10.15		1.55		7.16		4.22		11.82

Total tenant improvement, leasing commission, and tenant concession costs psf	$	36.00	$	55.61	$	20.71	$	34.22	$	14.17

Total
Number of renewals/leases		30		22		23		22		21
Square feet		624,875		367,360		350,815		466,259		253,942
Tenant improvement costs per square foot (2)	$	18.47	$	22.42	$	75.14	$	19.00	$	10.09
Leasing commission costs per square foot (2)		5.36		6.96		11.74		6.29		3.19
Tenant concession costs per square foot (2) (3)		17.04		2.97		3.64		21.95		6.55

Total tenant improvement, leasing commission, and tenant concession costs psf	$	40.87	$	32.35	$	90.52	$	47.24	$	19.83

(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 is executed, 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 35.

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NON-GAAP FINANCIAL MEASURE DEFINITIONS

DECEMBER 31, 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.

FFO, CFFO and AFFO

We present funds from operations, or FFO, FFO excluding acquisition-related expenses, or CFFO, and adjusted funds from operations, or AFFO, available to common shares and OP units because we consider them to be 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, CFFO and AFFO are 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, CFFO and AFFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide performance measures that, when compared year over year, reflect 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 depreciable 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 computations may differ from the methodologies 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 alternatives to net income/(loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as indicators of our liquidity, nor are they 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

DECEMBER 31, 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) items associated with the expansion of a building or its improvements, (2) 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 (3) capital improvements that represent an addition to the property rather than the replacement of property, plant or equipment.

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