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

Attached files

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8-K - 8-K - BioMed Realty Trust Inc	d623773d8k.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	d623773dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

SEPTEMBER 30, 2013


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

SEPTEMBER 30, 2013


	Page			Page
Third Quarter Highlights		3	Common and Preferred Stock Data		20
Investor Information		4	Market Summary		21
Equity Research Coverage		5	Property Listing - Consolidated Portfolio		22-24
Financial and Operating Highlights		6	Development, Redevelopment and Development Potential
Capitalization Summary		7	Development, Redevelopment and Development Potential		25
Portfolio Summary		8	Capital Expenditures		26
Consolidated Balance Sheets		9	Property Listing - Unconsolidated Partnerships		27
Consolidated Statements of Operations		10	Lease Expirations		28
Balance Sheet / Operations Statement Detail		11	Expirations by Market		29
FFO, CFFO and AFFO		12	10 Largest Tenants		30
FFO, CFFO and AFFO per Share		13	Same Property Analysis		31
Reconciliation of EBITDA and Adjusted EBITDA		14	Acquisitions, Mergers and Dispositions		32
Reconciliation of Net Operating Income		15	Leasing Activity		33
Interest Expense		16	Tenant Improvements, Leasing Commissions and Tenant Concessions
Coverage Ratios		17			34
Debt Summary		18	Non-GAAP Financial Measure Definitions		35
Debt Maturities		19	Definitions		36

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 tax credits, grants and other subsidies to fund development activities; 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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THIRD QUARTER HIGHLIGHTS

SEPTEMBER 30, 2013

•

Executed 37 leasing transactions during the quarter representing approximately 340,100 square feet, contributing to an operating portfolio leased percentage on a weighted-average basis of approximately 90.7% at quarter end, and comprised of:

•

24 new leases totaling approximately 229,500 square feet, highlighted by:

•

a new lease with Ipsen for approximately 62,600 square feet at 650 East Kendall Street in Cambridge, Massachusetts which BioMed Realty owns through a joint venture with Prudential Real Estate Investors on behalf of institutional investors; and

•

a new lease with Cambridge Innovation Center for approximately 32,400 square feet at Wexford Science & Technology’s Heritage @ 4240 property in St. Louis, Missouri, which is currently under development, and a new lease with Forsyth Technical Community College for approximately 23,900 square feet at Wexford Science & Technology’s Piedmont Triad Research – Wake 90 property in Winston-Salem, North Carolina, which is currently under development.

•

13 lease renewals totaling approximately 110,600 square feet, highlighted by lease extensions with Washington University in St. Louis totaling approximately 58,000 square feet at Wexford Science & Technology’s 4320 Forest Park Avenue property in St. Louis, Missouri.

•

Approximately 111,300 square feet of positive net absorption during the third quarter.

•

The Wexford Science & Technology operating portfolio reached stabilization, now approximately 90.0% leased, up over 350 basis points since the acquisition was announced at the end of the first quarter.

•

Same property net operating income on a cash basis for the third quarter increased 5.7% versus the same period in 2012 and increased 7.0% excluding the Oyster Point properties in South San Francisco, which were leased to Life Technologies after the company received a $46.5 million lease termination payment from Elan Corporation in the second quarter.

•

Core funds from operations (CFFO) was $0.33 per diluted share. Funds from operations (FFO) calculated in accordance with standards established by NAREIT was also $0.33 per diluted share. Adjusted funds from operations (AFFO) for the quarter was $0.29 per diluted share.

•

Generated total revenues for the third quarter of approximately $159.2 million, up from approximately $134.5 million in the third quarter of 2012. Rental revenues for the quarter increased to approximately $116.9 million from approximately $101.5 million in the same period in 2012 and were the highest in the company’s and the industry’s history.

•

Reported net income available to common stockholders for the quarter of approximately $4.2 million, or $0.02 per diluted share.

•

Amended and restated the company’s senior unsecured credit facility to increase the revolving capacity under the credit facility to $900 million, add a $350 million term loan, reduce the fully-drawn borrowing cost by 35 basis points and extend the maturity date to March 24, 2018. As of quarter-end, the $900 million facility had $880 million available under the $900 million revolver.

About BioMed Realty Trust

BioMed Realty, with its trusted expertise and valuable relationships, 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 16.3 million rentable square feet. Additional information is available at www.biomedrealty.com.

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INVESTOR INFORMATION

SEPTEMBER 30, 2013


Company Information
Corporate Headquarters	Trading Symbol	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	Computershare Shareowner Services LLC	New York Stock Exchange
San Diego, CA 92128		250 Royall Street
(858) 485-9840		Canton, MA 02021
(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	Jonathan P. Klassen	Robert M. Sistek
Chairman	Chairman and	Senior Vice President,	Vice President, Finance
Daniel M. Bradbury	Chief Executive Officer	General Counsel and Secretary	William F. X. Kane
Barbara R. Cambon	R. Kent Griffin, Jr.	John P. Bonanno	Vice President,
Edward A. Dennis, Ph.D.	President and	Senior Vice President,	Leasing & Development
Richard I. Gilchrist	Chief Operating Officer	Leasing & Development	Denis J. Sullivan, Jr.
Gary A. Kreitzer	Gary A. Kreitzer	Kevin M. Simonsen	Vice President,
Theodore D. Roth M. Faye Wilson	Executive Vice President, Director	Vice President, Real Estate Legal	Acquisitions James W. Cullinan
	Matthew G. McDevitt	Bruce D. Steel	Vice President, Marketing
	Executive Vice President, Real Estate	Managing Director, BioMed Ventures	James R. Berens President
	Greg N. Lubushkin	Stephen A. Willey	Wexford Science & Technology
	Chief Financial Officer	Vice President,	Sandy N. Weeks, Esq.
	Karen A. Sztraicher	Chief Accounting Officer	Senior Vice President and
	Executive Vice President,	Janice L. Kameir	General Counsel
	Asset Management	Vice President, Human Resources	Wexford Science & Technology Daniel C. Cramer
			Senior Vice President, Development
			Wexford Science & Technology

Tentative Schedule for Quarterly Results
Fourth Quarter 2013	February 5, 2014
First Quarter 2014	April 30, 2014
Second Quarter 2014	July 30, 2014
Third Quarter 2014	October 29, 2014

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EQUITY RESEARCH COVERAGE

SEPTEMBER 30, 2013


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 Tom Catherwood	(646) 562-1380 (646) 562-1382	james.sullivan@cowen.com tom.catherwood@cowen.com

Green Street Advisors	Jeff Theiler	(949) 640-8780	jtheiler@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	Vikram Malhotra Vance Edelson	(212) 761-7064 (212) 761-0078	vikram.malhotra@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.	David B. Rodgers Mathew R. Spencer	(216) 737-7341 (414) 298-5053	drodgers@rwbaird.com 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 Gabriel Hilmoe	(212) 713-4760 (212) 713-3876	ross.nussbaum@ubs.com gabriel.hilmoe@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

SEPTEMBER 30, 2013

(In thousands, except per share and ratio amounts)


	Three Months Ended
Selected Operating Data	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Rental revenues	$	116,884		$	108,092		$	102,956		$	103,978		$	101,467
Total revenues		159,232			159,639			160,450			138,771			134,537
EBITDA (1)		95,093			105,389			95,878			85,018			81,773
Adjusted EBITDA (1)		95,659			94,196			88,396			88,784			85,646
Net operating income - cash basis (2)		100,465			98,031			98,784			92,728			92,032
General and administrative expense		11,934			10,396			10,028			10,608			10,226
Acquisition-related expenses		907			2,120			2,236			22			176
Capitalized interest		3,984			3,176			2,840			2,268			1,926
Interest expense, net		27,870			26,119			25,902			26,745			26,817
Operating margin (3)		66.8	%		70.2	%		70.1	%		70.9	%		70.8	%
General and administrative expense / Total revenues		7.5	%		6.5	%		6.2	%		7.6	%		7.6	%
Change in same property net operating income - cash basis (4)		5.7	%		2.5	%		3.5	%		6.1	%		7.7	%
Net income available to common stockholders		4,247			14,803			8,388			4,516			2,758
Net income per share - diluted	$	0.02		$	0.08		$	0.05		$	0.03		$	0.02
FFO - diluted (5)		67,586			80,514			71,333			59,546			56,166
FFO per share - diluted (5)	$	0.33		$	0.40		$	0.41		$	0.36		$	0.34
CFFO - diluted (5)		68,493			82,634			73,569			59,568			56,342
CFFO per share - diluted (5)	$	0.33		$	0.41		$	0.42		$	0.36		$	0.34
AFFO - diluted (5)		60,719			73,951			81,424			55,004			55,641
AFFO per share - diluted (5)	$	0.29		$	0.37		$	0.47		$	0.33		$	0.33
Dividend per share - common stock	$	0.235		$	0.235		$	0.235		$	0.235		$	0.215
CFFO payout ratio (6)		71.2	%		57.3	%		56.0	%		65.3	%		63.2	%
AFFO payout ratio (6)		81.0	%		63.5	%		50.0	%		71.2	%		65.2	%

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(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 35. For a quantitative reconciliation of the differences between EBITDA, Adjusted 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 31 for detail.

(5)	For definitions and discussion of FFO, CFFO and AFFO, see page 35. 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

SEPTEMBER 30, 2013

(In thousands, except per share and ratio amounts)


Capitalization		9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Total common shares outstanding			192,107			191,948			169,055			154,328			154,335
Total units outstanding (1)			5,416			5,416			2,919			2,933			2,943

Total common shares and units outstanding			197,523			197,364			171,974			157,261			157,278
Common share price at quarter end		$	18.59		$	20.23		$	21.60		$	19.33		$	18.72

Equity value at quarter end		$	3,671,947		$	3,992,675		$	3,714,640		$	3,039,847		$	2,944,240
Preferred stock at liquidation value			—			—			—			198,000			198,000
Consolidated debt			2,560,173			2,524,960			2,255,941			2,170,983			2,142,405

Total capitalization		$	6,232,120		$	6,517,635		$	5,970,581		$	5,408,830		$	5,284,645

Debt / Total assets			43.4	%		43.1	%		45.1	%		44.9	%		44.3	%
Debt / Total gross assets			38.6	%		38.5	%		40.0	%		39.9	%		39.7	%
Debt / Total capitalization			41.1	%		38.7	%		37.8	%		40.1	%		40.5	%
Coverage Ratios (2)
Net Debt / Adjusted EBITDA (3)			6.6			6.5			6.3			6.0			6.2
Interest coverage			3.8			4.0			3.8			3.7			3.6
Fixed charge coverage			3.5			3.7			3.2			3.0			2.9
Total Consolidated Debt
Secured debt / Total gross assets			10.8	%		11.6	%		10.1	%		10.5	%		10.7	%
Floating rate debt / Total debt			30.4	%		27.0	%		27.1	%		24.1	%		23.0	%
Adjusted floating rate debt / Total debt (4)			8.5	%		13.0	%		11.5	%		7.4	%		6.1	%
Unencumbered real estate / Total real estate			73.9	%		74.3	%		77.7	%		77.0	%		76.8	%
Unencumbered CABR / Total CABR (5)			75.8	%		76.5	%		79.1	%		79.3	%		79.1	%
Unsecured line of credit capacity		$	880,000		$	510,000		$	535,000		$	632,000		$	650,500

Bond Covenants (6)	Requirements
Total outstanding debt / Total assets	Must be £ 60%		39.6	%		39.6	%		41.2	%		41.1	%		41.3	%
Secured debt / Total assets	Must be £ 40%		11.1	%		11.9	%		10.4	%		10.8	%		11.0	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		3.6			3.7			3.2			3			2.9
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		265	%		278	%		257	%		260	%		259	%
Unencumbered assets / Unsecured debt - Notes due 2016, Notes due 2022	Must be ³ 150%		263	%		276	%		255	%		257	%		257	%

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

(2)	For discussion of coverage ratios, see page 35. See page 17 for the calculation of interest and fixed charge coverage ratios. See page 14 for calculation of Adjusted EBITDA.

(3)	Net Debt is calculated as (debt less cash and cash equivalents and restricted cash).

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

(5)	For current annualized base rent (CABR) by market, see page 21.

(6)

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

SEPTEMBER 30, 2013


	Gross Book Value		Buildings		Rentable Square Feet		Weighted- Average Leased % (1)
	(In thousands)
Stabilized (2)	$	3,940,716		111		9,180,716		98.9	%
Lease up (2)		1,475,218		62		5,253,032		68.6	%

Total operating portfolio	$	5,415,934		173		14,433,748		90.7	%


Development (3)	$	176,764		6		1,353,889		68.9	%
Redevelopment (3)		23,993		2		143,757		79.7	%
Pre-Development (3)		125,511		—		1,043,000		—
Unconsolidated partnership portfolio (4)		31,871		3		355,080		77.3	%
Development potential (3)		166,973		—		3,306,000		—

Total portfolio	$	5,941,046		184		20,635,474

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

(2)	See pages 22-24 for detail of consolidated portfolio and page 36 for definitions of terms.

(3)	See page 25 for detail of the consolidated portfolio and page 36 for definitions of terms.

(4)	See page 27 for detail of the unconsolidated partnership portfolio.

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CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2013

(In thousands)


	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Assets
Investments in real estate, net	$	5,172,102		$	5,131,507		$	4,424,867		$	4,319,716		$	4,327,426
Investments in unconsolidated partnerships		31,978			32,250			32,118			32,367			31,955
Cash and cash equivalents		29,230			27,666			18,552			19,976			20,646
Accounts receivable, net		10,580			6,274			35,888			4,507			7,128
Accrued straight-line rents, net		169,272			163,287			155,591			152,096			144,975
Deferred leasing costs, net		202,393			213,567			167,648			172,363			180,925
Other assets		278,600			289,232			164,968			133,454			118,052

Total assets	$	5,894,155		$	5,863,783		$	4,999,632		$	4,834,479		$	4,831,107

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	716,733		$	821,582		$	569,390		$	571,652		$	574,497
Exchangeable senior notes, net		180,000			180,000			180,000			180,000			180,000
Unsecured senior notes, net		894,850			894,622			894,397			894,177			893,955
Unsecured senior term loans		755,226			395,676			395,486			405,456			405,216
Unsecured line of credit		20,000			240,000			215,000			118,000			87,000
Accounts payable, accrued expenses, and other liabilities		311,287			281,780			199,731			180,653			178,706

Total liabilities		2,878,096			2,813,660			2,454,004			2,349,938			2,319,374
Equity:
Stockholders’ equity:
Preferred stock		—			—			—			191,469			191,469
Common stock		1,921			1,919			1,691			1,543			1,543
Additional paid-in capital		3,552,595			3,549,082			3,065,589			2,781,849			2,779,035
Accumulated other comprehensive loss, net		(38,618	)		(43,094	)		(55,480	)		(54,725	)		(56,988	)
Dividends in excess of earnings		(545,819	)		(504,921	)		(474,619	)		(443,280	)		(411,529	)

Total stockholders’ equity		2,970,079			3,002,986			2,537,181			2,476,856			2,503,530
Noncontrolling interests		45,980			47,137			8,447			7,685			8,203

Total equity		3,016,059			3,050,123			2,545,628			2,484,541			2,511,733

Total liabilities and equity	$	5,894,155		$	5,863,783		$	4,999,632		$	4,834,479		$	4,831,107

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CONSOLIDATED STATEMENTS OF OPERATIONS

SEPTEMBER 30, 2013

(In thousands, except share and per share data)


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Revenues:
Rental	$	116,884		$	108,092		$	102,956		$	103,978		$	101,467
Tenant recoveries		38,907			32,494			32,637			31,638			31,765
Other revenue		3,441			19,053			24,857			3,155			1,305

Total revenues		159,232			159,639			160,450			138,771			134,537

Expenses:
Rental operations		51,688			41,941			40,553			39,502			38,944
Depreciation and amortization		61,898			63,557			60,764			52,963			51,372
General and administrative		11,934			10,396			10,028			10,608			10,226
Acquisition-related expenses		907			2,120			2,236			22			176

Total expenses		126,427			118,014			113,581			103,095			100,718

Income from operations		32,805			41,625			46,869			35,676			33,819
Equity in net loss of unconsolidated partnerships		(112	)		(267	)		(319	)		(379	)		(339	)
Interest expense, net		(27,870	)		(26,119	)		(25,902	)		(26,745	)		(26,817	)
Other expense		(687	)		(202	)		(3,190	)		(292	)		(208	)

Net income		4,136			15,037			17,458			8,260			6,455
Net loss/(income) attributable to noncontrolling interests		111			(234	)		(146	)		(93	)		(46	)

Net income attributable to the Company		4,247			14,803			17,312			8,167			6,409
Preferred stock dividends		—			—			(2,393	)		(3,651	)		(3,651	)
Cost on redemption of preferred stock		—			—			(6,531	)		—			—

Net income available to common stockholders	$	4,247		$	14,803		$	8,388		$	4,516		$	2,758

Income from continuing operations per share available to common stockholders:
Basic and diluted earnings per share	$	0.02		$	0.08		$	0.05		$	0.03		$	0.02

Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.02		$	0.08		$	0.05		$	0.03		$	0.02

Weighted-average common shares outstanding:
Basic		190,646,722			186,735,157			159,692,470			152,790,669			152,785,451

Diluted		196,131,643			190,151,166			162,713,677			155,728,210			155,728,209

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

SEPTEMBER 30, 2013

(In thousands)


	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Restricted cash	$	9,386		$	71,046		$	4,068		$	3,554		$	3,443
Acquired above-market leases, net		17,052			18,349			12,432			18,099			20,234
Acquired below-market ground lease, net		19,648			19,767			11,310			11,368			11,426
Deferred loan costs, net		20,407			15,442			16,240			17,512			18,878
Lease incentives, net		20,138			20,627			21,140			21,741			21,990
Construction loan receivable, net (1)		120,948			92,567			55,981			21,695			1,275
Other		71,021			51,434			43,797			39,485			40,806

Other assets	$	278,600		$	289,232		$	164,968		$	133,454		$	118,052

Security deposits	$	13,538		$	13,667		$	12,186		$	12,417		$	12,296
Dividends and distributions payable		46,418			46,381			40,413			40,607			37,465
Accounts payable, accrued expenses and other liabilities		207,967			178,125			133,420			114,123			114,533
Derivative instruments		2,620			1,439			5,435			5,285			5,702
Acquired below-market leases, net		40,744			42,168			8,277			8,221			8,710

Accounts payable, accrued expenses and other liabilities	$	311,287		$	281,780		$	199,731		$	180,653		$	178,706

	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Lease termination revenue	$	1,504		$	17,316		$	24,001		$	2,483		$	935
Construction loan revenue		1,824			1,319			807			387			326
Other revenue		113			418			49			285			44

Other revenue	$	3,441		$	19,053		$	24,857		$	3,155		$	1,305

Rental operations expenses	$	36,222		$	28,397		$	27,165		$	26,753		$	26,480
Real estate taxes		15,466			13,544			13,388			12,749			12,464

Rental operations	$	51,688		$	41,941		$	40,553		$	39,502		$	38,944

Loss on extinguishment of debt	$	—		$	—		$	—		$	(99	)	$	—
Non-cash adjustment for securities		—			—			(2,825	)		—			—
Gain/(loss) on derivative instruments		121			—			—			(1	)		(1	)
Gain on sale of assets		230			—			—			—			—
Other investment loss		(1,135	)		—			—			—			—
Realized gain on investments in equity securities		354			82			—			—			—
Realized gain/(loss) on foreign currency transactions		190			7			(160	)		16			40
Income tax expense		(447	)		(291	)		(205	)		(208	)		(247	)

Other expense	$	(687	)	$	(202	)	$	(3,190	)	$	(292	)	$	(208	)

(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 total potential funding obligation is $255 million.

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FFO, CFFO AND AFFO (1)

SEPTEMBER 30, 2013

(In thousands)


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Reconciliation of net income available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income available to common stockholders	$	4,247		$	14,803		$	8,388		$	4,516		$	2,758
Adjustments:
Gain on sale of assets		(230	)		—			—			—			—
Noncontrolling interests in operating partnership		118			263			154			86			53
Depreciation & amortization - unconsolidated partnerships		380			367			369			323			323
Depreciation & amortization - consolidated entities		61,898			63,557			60,764			52,963			51,372
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(515	)		(164	)		(30	)		(30	)		(28	)

Funds from operations (FFO) - basic	$	65,898		$	78,826		$	69,645		$	57,858		$	54,478
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	67,586		$	80,514		$	71,333		$	59,546		$	56,166
Acquisition-related expenses		907			2,120			2,236			22			176

CFFO - diluted	$	68,493		$	82,634		$	73,569		$	59,568		$	56,342


Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements (3)		(9,857	)		(12,599	)		(9,795	)		(5,738	)		(2,739	)
Leasing commissions		(1,703	)		(1,985	)		(1,580	)		(1,476	)		(2,001	)
Gain on extinguishment of debt		—			—			—			(20	)		—
(Gain)/loss on derivative instruments		(121	)		—			—			1			1
Non-cash adjustment for securities		—			—			2,825			—			—
Non-cash debt adjustments		3,426			3,059			3,099			3,141			3,025
Amortization of lease incentives		561			543			627			576			561
Depreciation included in general and administrative expense		629			565			481			510			483
Non-cash equity compensation		3,489			3,067			3,011			2,860			3,094
Cost on redemption of preferred stock		—			—			6,531			—			—
Straight line rents		(4,078	)		(4,269	)		(2,605	)		(6,330	)		(5,288	)
Share of unconsolidated partnership adjustments (4)		24			31			40			34			26
Fair-value lease revenue		(144	)		2,905			5,221			1,878			2,137

AFFO - diluted	$	60,719		$	73,951		$	81,424		$	55,004		$	55,641

(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 35.

(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 36.

(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)

SEPTEMBER 30, 2013

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


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
FFO - basic	$	65,898		$	78,826		$	69,645		$	57,858		$	54,478
FFO - diluted		67,586			80,514			71,333			59,546			56,166
CFFO - diluted		68,493			82,634			73,569			59,568			56,342
AFFO - diluted		60,719			73,951			81,424			55,004			55,641
FFO per share - basic	$	0.33		$	0.41		$	0.42		$	0.37		$	0.35
FFO per share - diluted (2)		0.33			0.40			0.41			0.36			0.34
CFFO per share - diluted (2)		0.33			0.41			0.42			0.36			0.34
AFFO per share - diluted (2)		0.29			0.37			0.47			0.33			0.33
Dividends and distributions declared per common share	$	0.235		$	0.235		$	0.235		$	0.235		$	0.215

CFFO payout ratio		71.2	%		57.3	%		56.0	%		65.3	%		63.2	%
AFFO payout ratio		81.0	%		63.5	%		50.0	%		71.2	%		65.2	%
Weighted-average common shares and units outstanding diluted (3)		197,546,778			191,457,377			164,111,880			157,265,242			157,223,682
Dilutive effect of exchangeable senior notes due 2030 (2)		10,405,224			10,259,496			10,259,496			10,259,496			10,127,232

Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		207,952,002			201,716,873			174,371,376			167,524,738			167,350,914

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(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 35.

(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 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 interest charges relating to calculations of FFO, CFFO and AFFO per diluted share.

(3)

The three months ended September 30, 2012 includes 2,942,758 shares of OP and LTIP units, which are considered anti-dilutive for purposes of calculating diluted earnings per share. The three months ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012 include 1,415,135, 1,306,211, 1,398,203, 1,537,032 and 1,495,473 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)

SEPTEMBER 30, 2013

(In thousands)


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12		9/30/12
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA:
Net income available to common stockholders	$	4,247		$	14,803		$	8,388		$	4,516	$	2,758
Interest expense, net		27,870			26,119			25,902			26,745		26,817
Interest expense - unconsolidated partnerships		251			252			250			263		256
Income tax expense		447			291			205			208		247
Depreciation & amortization - consolidated entities		61,898			63,557			60,764			52,963		51,372
Depreciation & amortization - unconsolidated partnerships		380			367			369			323		323

EBITDA		95,093			105,389			95,878			85,018		81,773
Noncontrolling interests		(111	)		234			146			93		46
Preferred dividends		—			—			2,393			3,651		3,651
Cost on redemption of preferred stock		—			—			6,531			—		—
Non-cash adjustment for securities		—			—			2,825			—		—
Gain on sale of assets		(230	)		—			—			—		—
Acquisition-related expenses		907			2,120			2,236			22		176
Elan Corporation lease termination revenue, net		—			(13,547	)		(21,613	)		—		—

Adjusted EBITDA	$	95,659		$	94,196		$	88,396		$	88,784	$	85,646

(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 35.

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RECONCILIATION OF NET OPERATING INCOME (1)

SEPTEMBER 30, 2013

(In thousands, except ratio amounts)


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Net income	$	4,136		$	15,037		$	17,458		$	8,260		$	6,455
Equity in net loss of unconsolidated partnerships		112			267			319			379			339
Interest expense, net		27,870			26,119			25,902			26,745			26,817
Other expense		687			202			3,190			292			208

Income from operations		32,805			41,625			46,869			35,676			33,819
Depreciation and amortization		61,898			63,557			60,764			52,963			51,372
General and administrative		11,934			10,396			10,028			10,608			10,226
Acquisition-related expenses		907			2,120			2,236			22			176

Consolidated net operating income	$	107,544		$	117,698		$	119,897		$	99,269		$	95,593

Revenues:
Rental	$	116,884		$	108,092		$	102,956		$	103,978		$	101,467
Tenant recoveries		38,907			32,494			32,637			31,638			31,765
Other revenue (2)		3,441			19,053			24,857			3,155			1,305

Total revenues		159,232			159,639			160,450			138,771			134,537
Expenses:
Rental operations		51,688			41,941			40,553			39,502			38,944

Consolidated net operating income	$	107,544		$	117,698		$	119,897		$	99,269		$	95,593

Consolidated net operating income - cash basis (3)	$	100,465		$	98,031		$	98,784		$	92,728		$	92,032

Operating margin (4)		66.8	%		70.2	%		70.1	%		70.9	%		70.8	%
Operating expense recovery (5)		75.3	%		77.5	%		80.5	%		80.1	%		81.6	%

(1)	For a definition and discussion of net operating income, see page 35.

(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

SEPTEMBER 30, 2013

(In thousands)


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Mortgage notes payable	$	11,969		$	10,675		$	10,004		$	10,103		$	10,077
Exchangeable senior notes		1,688			1,688			1,688			1,688			1,688
Unsecured senior notes		10,334			10,334			10,334			10,334			10,334
Unsecured senior term loan		1,993			1,988			1,940			2,039			2,022
Unsecured line of credit		1,242			294			461			417			346
Line of credit fees		602			664			656			712			729
Derivative instruments		600			593			560			579			522

Interest expense, net - cash basis	$	28,428		$	26,236		$	25,643		$	25,872		$	25,718

Non-cash interest expense:
Amortization of fair-value of debt acquired		(511	)		(310	)		(189	)		(159	)		(178	)
Amortization of debt discounts		228			225			219			222			218
Amortization of deferred loan costs		1,825			1,374			1,351			1,354			1,255
Amortization of deferred interest costs		1,705			1,711			1,718			1,724			1,730
Amortization of put/call and preferred returns		179			59			—			—			—

Non-cash debt adjustments		3,426			3,059			3,099			3,141			3,025
Capitalized interest		(3,984	)		(3,176	)		(2,840	)		(2,268	)		(1,926	)

Interest expense, net	$	27,870		$	26,119		$	25,902		$	26,745		$	26,817

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COVERAGE RATIOS (1)

SEPTEMBER 30, 2013

(In thousands, except ratio amounts)


	Three Months Ended
	9/30/13			6/30/13			3/31/13			12/31/12			9/30/12
Interest coverage ratio
Adjusted EBITDA	$	95,659		$	94,196		$	88,396		$	88,784		$	85,646
Interest expense:
Interest expense, net		27,870			26,119			25,902			26,745			26,817
Interest expense - unconsolidated partnerships		251			252			250			263			256
Amortization of deferred interest costs		(1,705	)		(1,711	)		(1,718	)		(1,724	)		(1,730	)
Amortization of deferred loan costs		(1,825	)		(1,374	)		(1,351	)		(1,354	)		(1,255	)
Amortization of debt discounts		(228	)		(225	)		(219	)		(222	)		(218	)
Amortization of fair-value of debt acquired		511			310			189			159			178

Total interest expense	$	24,874		$	23,371		$	23,053		$	23,867		$	24,048

Interest coverage ratio		3.8			4.0			3.8			3.7			3.6

Fixed charge coverage ratio
Adjusted EBITDA	$	95,659		$	94,196		$	88,396		$	88,784		$	85,646
Fixed charges:
Interest expense, net		27,870			26,119			25,902			26,745			26,817
Interest expense - unconsolidated partnerships		251			252			250			263			256
Amortization of deferred interest costs		(1,705	)		(1,711	)		(1,718	)		(1,724	)		(1,730	)
Amortization of deferred loan costs		(1,825	)		(1,374	)		(1,351	)		(1,354	)		(1,255	)
Amortization of debt discounts		(228	)		(225	)		(219	)		(222	)		(218	)
Amortization of fair-value of debt acquired		511			310			189			159			178
Principal payments		2,616			2,232			2,072			2,072			2,063
Preferred dividends		—			—			2,393			3,651			3,651

Total fixed charges	$	27,490		$	25,603		$	27,518		$	29,590		$	29,762

Fixed charge coverage ratio		3.5			3.7			3.2			3.0			2.9

(1)	For a discussion of coverage ratios, see page 35.

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DEBT SUMMARY

SEPTEMBER 30, 2013

(Dollars in thousands)


	Stated Rate			Effective Rate			Principal Balance		Unamortized Premium / (Discount)			Carrying Value		Maturity Date
Consolidated Debt:
Mortgage Notes Payable:
9900 Belward Campus Drive		5.64	%		3.99	%	$	10,666	$	639		$	11,305		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		13,135		782			13,917		07/17
Center for Life Science \| Boston		7.75	%		7.75	%		335,476		—			335,476		06/14
4320 Forest Park Avenue (1)		4.00	%		2.70	%		21,000		323			21,323		06/15
Heritage @ 4240 (2)		3.18	%		3.18	%		4,194		—			4,194		12/15
Hershey Center for Applied Research (1)		6.15	%		4.71	%		13,568		1,462			15,030		05/27
500 Kendall Street (Kendall D)		6.38	%		5.45	%		58,500		2,119			60,619		12/18
Shady Grove Road		5.97	%		5.97	%		143,538		—			143,538		09/16
University of Maryland BioPark I (1)		5.93	%		4.69	%		16,915		1,513			18,428		05/25
University of Maryland BioPark II (1)		5.20	%		4.33	%		63,198		4,036			67,234		09/21
University of Maryland BioPark Garage (1)		5.20	%		4.33	%		4,757		304			5,061		09/21
University of Miami Life Science & Technology Park (1)		4.00	%		2.89	%		20,000		608			20,608		02/16

Total / Weighted-Average on Mortgage Notes Payable		6.64	%		6.29	%		704,947		11,786			716,733
Unsecured 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		(1,341	)		398,659		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(1,849	)		248,151		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(1,960	)		248,040		07/22
Unsecured Variable Rate Debt:
Unsecured Senior Term Loan Due 2017 - U.S. Dollar (3)		1.83	%		2.64	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan Due 2017 - GBP (4)		2.14	%		2.39	%		161,630		—			161,630		03/17
Unsecured Senior Term Loan Due 2018 (5)		1.68	%		1.68	%		350,000		—			350,000		03/18
Unsecured Line of Credit (6)		1.48	%		1.48	%		20,000		—			20,000		03/18

Total / Weighted-Average on Consolidated Debt		4.26	%		4.30	%	$	2,560,173	$	6,636		$	2,566,809

Share of Unconsolidated Partnership Debt:
BioPark Fremont (50%) (fixed) (1)		3.75	%		3.70	%		1,343		6			1,349		05/14
PREI Secured Construction Loan (20%) (variable)		3.19	%		3.19	%		27,795		—			27,795		08/14

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.22	%		3.21	%		29,138		6			29,144

Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		4.25	%		4.29	%	$	2,589,311	$	6,642		$	2,595,953

(1)	Assumed in connection with the Company’s merger with Wexford Science & Technology in May 2013.

(2)	Subsequent to quarter end, the Heritage @ 4240 mortgage note was voluntarily prepaid in full prior to the scheduled maturity.

(3)

The Company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2017 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 due 2017 was 2.64% at September 30, 2013.

(4)

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.

(5)	The Company entered into interest rate swap agreements effective October 1, 2013 that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2018 at 2.20% for three years, subject to adjustments based on the Company’s credit ratings.

(6)	Effective rate excludes facility fee of 25 bps on the entire capacity of the unsecured line of credit, or $900.0 million, which equals approximately $562,500 per quarter.

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DEBT MATURITIES

SEPTEMBER 30, 2013

(In thousands)

Weighted-average debt maturity is 5.1 years for consolidated debt (excluding extension options).


	2013		2014		2015		2016		2017		Thereafter		Total
Consolidated debt:
Mortgage Notes Payable:
Mortgage notes payable (1)	$	6,897	$	341,415	$	30,006	$	166,516	$	30,294	$	129,819	$	704,947
Unsecured debt:
Unsecured exchangeable senior notes due 2030 (2)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2016		—		—		—		400,000		—		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000
Unsecured senior notes due 2022		—		—		—		—		—		250,000		250,000
Unsecured senior term loan due 2017 - U.S. Dollar		—		—		—		—		243,596		—		243,596
Unsecured senior term loan due 2017 - GBP		—		—		—		—		161,630		—		161,630
Unsecured senior term loan due 2018		—		—		—		—		—		350,000		350,000
Unsecured line of credit		—		—		—		—		—		20,000		20,000

Total unsecured debt		—		—		—		400,000		405,226		1,050,000		1,855,226
Total consolidated debt	$	6,897	$	341,415	$	30,006	$	566,516	$	435,520	$	1,179,819	$	2,560,173

Share of unconsolidated partnership debt:
BioPark Fremont (50%) (fixed)		—		1,343		—		—		—		—		1,343
PREI secured construction loan (20%) (variable)		—		27,795		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	—	$	29,138	$	—	$	—	$	—	$	—	$	29,138

Total consolidated and share of unconsolidated partnership debt	$	6,897	$	370,553	$	30,006	$	566,516	$	435,520	$	1,179,819	$	2,589,311

LOGO

(1)	Subsequent to quarter end, the Heritage @ 4240 mortgage note was voluntarily prepaid in full prior to the scheduled maturity.

(2)

The holders of the unsecured exchangeable senior notes due 2030 (the “2030 Notes”) have the right to require the Company to repurchase the 2030 Notes, in whole or in part, for cash on each of January 15, 2015, January 15, 2020 and January 15, 2025, or upon the occurrence of a designated event, in each case for a repurchase price equal to 100% of the principal amount of the 2030 Notes plus accrued and unpaid interest.

LOGO

COMMON AND PREFERRED STOCK DATA

SEPTEMBER 30, 2013

(Shares in thousands)


	Three Months Ended
Summary of Common Shares	09/30/13			06/30/13			03/31/13			12/31/12			09/30/12
Earnings per share
Weighted-average common shares outstanding		190,647			186,735			159,692			152,791			152,785
Weighted-average OP and LTIP units outstanding		5,416			3,367			2,924			2,937			2,943
Dilutive effect of performance units		69			49			98			—			—

Diluted common shares - EPS		196,132			190,151			162,714			155,728			155,728

Funds from operations
Weighted-average common shares outstanding		190,647			186,735			159,692			152,791			152,785
Weighted-average OP and LTIP units outstanding		5,416			3,367			2,924			2,937			2,943
Dilutive effect of performance units		69			49			98			—			—
Dilutive effect of restricted stock		1,415			1,306			1,398			1,537			1,496
Dilutive effect of exchangeable senior notes due 2030		10,405			10,260			10,259			10,260			10,127

Diluted common shares - FFO		207,952			201,717			174,371			167,525			167,351

Closing common shares, OP and LTIP units outstanding		197,523			197,364			171,974			157,261			157,278
Preferred shares outstanding		—			—			—			7,920			7,920
High price	$	21.62		$	23.13		$	22.30		$	19.68		$	19.94
Low price	$	17.90		$	18.55		$	19.47		$	18.19		$	18.10
Average closing price	$	19.63		$	21.64		$	20.88		$	19.07		$	18.81
Closing price	$	18.59		$	20.23		$	21.60		$	19.33		$	18.72
Dividends per share - annualized	$	0.94		$	0.94		$	0.94		$	0.94		$	0.86
Closing dividend yield - annualized		5.1	%		4.6	%		4.4	%		4.9	%		4.6	%


Dividends per Share	09/30/13			06/30/13			03/31/13			12/31/12			09/30/12
Common Stock - BMR
Amount	$	0.235		$	0.235		$	0.235		$	0.235		$	0.215
Declared		September 16, 2013			June 14, 2013			March 15, 2013			December 12, 2012			September 14, 2012
Record		September 30, 2013			June 28, 2013			March 28, 2013			December 31, 2012			September 28, 2012
Paid		October 15, 2013			July 15, 2013			April 15, 2013			January 15, 2013			October 15, 2012
Preferred Stock - BMR PrA (1)
Amount		—			—			—		$	0.46094		$	0.46094
Declared		—			—			—			December 12, 2012			September 14, 2012
Record		—			—			—			December 31, 2012			September 28, 2012
Paid		—			—			—			January 15, 2013			October 15, 2012

(1)	The Company voluntarily redeemed all shares of its Series A preferred stock on March 15, 2013, at a redemption price of $25.30217 per share (the sum of the $25.00 per share redemption price and a quarterly dividend of $0.46094 prorated through the redemption date).

LOGO

MARKET SUMMARY

SEPTEMBER 30, 2013


				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		3,078,937		$	170,903			33.3	%	$	55.51		$	179,201		30.2	%	$	58.20
Maryland		1,877,153			71,305			13.9	%		37.99			87,221		14.7	%		46.46
San Diego		1,768,874			60,432			11.8	%		34.16			75,030		12.6	%		42.42
San Francisco		2,393,258			58,414			11.4	%		24.41			70,875		11.9	%		29.61
New York / New Jersey		1,513,505			53,607			10.5	%		35.42			66,719		11.2	%		44.08
Pennsylvania		949,981			24,205			4.7	%		25.48			28,351		4.8	%		29.84
Cambridge, UK		470,015			17,137			3.3	%		36.46			17,193		2.9	%		36.58
North Carolina		771,467			13,369			2.6	%		17.33			17,363		2.9	%		22.51
Seattle		265,142			12,457			2.4	%		46.98			14,516		2.4	%		54.75
University Related - Other		1,045,213			30,794			6.1	%		29.46			36,955		6.4	%		35.36

Total portfolio / weighted-average		14,133,545		$	512,623			100.0	%	$	36.27		$	593,424		100.0	%	$	41.99


	Percent Leased
Market	Total Operating Portfolio			Development (3)			Redevelopment (3)			Unconsolidated Partnership Portfolio (4)
Boston		96.9	%		—			—			71.5	%
Maryland		92.4	%		—			100.0	%		—
San Diego		88.4	%		—			—			100.0	%
San Francisco		80.6	%		—			—			—
New York / New Jersey		84.3	%		100.0	%		—			—
Pennsylvania		82.0	%		55.2	%		—			—
Cambridge, UK		99.5	%		—			—			—
North Carolina		97.9	%		83.4	%		—			—
Seattle		72.4	%		—			—			—
University Related - Other		88.0	%		60.6	%		—			—

Total portfolio (5)		88.4	%		73.1	%		72.9	%		77.3	%

Total portfolio weighted-average leased % (6)		90.7	%		68.9	%		79.7	%		77.3	%

(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 25 for detail of the consolidated portfolio and page 35 for definitions of terms.

(4)	See page 27 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.

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

SEPTEMBER 30, 2013


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		9/30/13			6/30/13
	Boston
1	Albany Street	May 31, 2005	Stabilized		2		75,003		0.5	%		75,003		100.0	%		100.0	%
2	320 Bent Street	December 14, 2011	Lease Up		1		195,198		1.2	%		151,096		77.4	%		98.1	%
3	301 Binney Street	December 14, 2011	Stabilized		1		417,290		2.6	%		403,381		96.7	%		96.7	%
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		0.4	%		57,664		89.0	%		74.8	%
6	Center for Life Science \| Boston	November 17, 2006	Stabilized		1		704,159		4.4	%		696,331		98.9	%		98.9	%
7	Charles Street	April 7, 2006	Stabilized		1		47,912		0.3	%		47,912		100.0	%		100.0	%
8	320 Charles Street	June 18, 2013	Stabilized		1		99,513		0.6	%		99,513		100.0	%		100.0	%
9	Coolidge Avenue	April 5, 2005	Stabilized		1		37,684		0.2	%		34,580		91.8	%		78.1	%
10	21 Erie Street	May 31, 2005	Stabilized		1		48,627		0.3	%		48,627		100.0	%		100.0	%
11	40 Erie Street	May 31, 2005	Stabilized		1		100,854		0.6	%		100,854		100.0	%		100.0	%
12	47 Erie Street Parking Structure	May 31, 2005	Stabilized		1		447 Stalls		n/a			447 Stalls		100.0	%		100.0	%
13	Fresh Pond Research Park	April 5, 2005	Stabilized		6		90,702		0.6	%		89,176		98.3	%		98.3	%
14	50 Hampshire Street	February 9, 2012	Stabilized		1		183,052		1.1	%		183,052		100.0	%		100.0	%
15	60 Hampshire Street	February 9, 2012	Redevelopment		1		39,014		0.2	%		—		—			—
16	Kendall Crossing Apartments	December 14, 2011	Stabilized		1		37 Apts.		n/a			36 Apts.		100.0	%		96.4	%
17	450 Kendall Street (Kendall G)	May 31, 2011	Development		1		63,000		0.4	%		—		—			—
18	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		2.2	%		344,097		98.5	%		99.2	%
19	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		1.9	%		302,919		100.0	%		100.0	%
20	Sidney Street	May 31, 2005	Stabilized		1		191,904		1.2	%		191,904		100.0	%		100.0	%
21	Vassar Street	May 31, 2005	Lease Up		1		60,845		0.4	%		51,180		84.1	%		84.1	%

	Total Boston				27		3,071,813		19.1	%		2,877,289		93.7	%		94.6	%

	Maryland
22	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.5	%		77,225		100.0	%		100.0	%
23	9900 Belward Campus Drive	July 18, 2012	Lease Up		1		49,317		0.3	%		34,619		70.2	%		70.2	%
24	9901 Belward Campus Drive	July 18, 2012	Stabilized		1		57,152		0.4	%		57,110		99.9	%		99.9	%
25	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		1.8	%		289,912		100.0	%		100.0	%
26	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.3	%		51,181		100.0	%		100.0	%
27	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		0.8	%		122,600		100.0	%		100.0	%
28	9708-9714 Medical Center Drive	May 3, 2010	Lease Up		3		92,124		0.6	%		16,067		17.4	%		17.4	%
29	1701 / 1711 Research Boulevard	May 9, 2011	Redevelopment		1		104,743		0.7	%		104,743		100.0	%		100.0	%
30	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		4.0	%		635,058		100.0	%		100.0	%
31	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.6	%		91,592		100.0	%		100.0	%
32	University of Maryland BioPark I	May 31, 2013	Stabilized		1		75,517		0.5	%		75,517		100.0	%		100.0	%
33	University of Maryland BioPark II	May 31, 2013	Stabilized		1		235,959		1.5	%		219,124		92.9	%		88.3	%
34	University of Maryland BioPark Garage	May 31, 2013	Stabilized		1		638 Stalls		n/a			396 Stalls		73.0	%		73.0	%
35	50 West Watkins Mill Road	May 7, 2010	Lease Up		1		57,410		0.4	%		20,000		34.8	%		34.8	%
36	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.5	%		82,405		100.0	%		100.0	%

	Total Maryland				21		2,022,195		12.9	%		1,877,153		92.8	%		92.3	%

	San Diego
37	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.2	%		35,344		100.0	%		100.0	%
38	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.4	%		61,286		100.0	%		100.0	%
39	Coast 9	October 15, 2010	Lease Up		8		162,074		1.0	%		126,893		78.3	%		76.1	%
40	4570 Executive Drive	September 17, 2010	Lease Up		1		125,219		0.8	%		106,757		85.3	%		85.3	%
41	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.2	%		28,704		100.0	%		100.0	%
42	Gazelle Court	March 30, 2010	Stabilized		1		176,000		1.1	%		176,000		100.0	%		100.0	%
43	3525 John Hopkins Court	December 28, 2010	Stabilized		1		48,306		0.3	%		48,306		100.0	%		100.0	%
44	3545-3575 John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.5	%		61,173		84.7	%		84.7	%
45	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		1.2	%		196,557		100.0	%		100.0	%
46	6122-6126 Nancy Ridge Drive	April 25, 2012	Stabilized		1		68,000		0.4	%		68,000		100.0	%		100.0	%
47	6828 Nancy Ridge Drive	April 21, 2005	Lease Up		1		42,138		0.3	%		17,707		42.0	%		42.0	%
48	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.4	%		66,745		100.0	%		100.0	%
49	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.4	%		44,421		65.3	%		54.7	%
50	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		0.7	%		83,232		79.0	%		67.0	%
51	10240 Science Center Drive	September 23, 2010	Stabilized		1		49,347		0.3	%		49,347		100.0	%		100.0	%
52	10255 Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.3	%		53,740		100.0	%		100.0	%
53	Sorrento Plaza	December 18, 2010	Stabilized		2		31,184		0.2	%		31,184		100.0	%		100.0	%

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

SEPTEMBER 30, 2013


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		9/30/13			6/30/13
	San Diego (Continued)
54	Sorrento Valley Boulevard	December 7, 2006	Lease Up		1		54,924		0.3	%		—		—			—
55	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.2	%		35,940		100.0	%		100.0	%
56	Summers Ridge	June 8, 2012	Stabilized		—		—		n/a			—		100.0	%		100.0	%
57	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.5	%		81,204		100.0	%		100.0	%
58	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.6	%		94,866		100.0	%		100.0	%
59	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.7	%		104,870		100.0	%		100.0	%
60	Waples Street	March 1, 2005	Lease Up		1		50,055		0.3	%		21,952		43.9	%		100.0	%
61	Wateridge Circle	November 1, 2011	Stabilized		3		106,490		0.7	%		101,783		95.6	%		95.6	%

	Total San Diego				39		1,918,547		12.0	%		1,696,011		88.4	%		88.6	%

	San Francisco
62	Ardentech Court	November 18, 2004	Stabilized		1		55,588		0.3	%		55,588		100.0	%		100.0	%
63	Ardenwood Venture (2)	June 14, 2006	Lease Up		1		72,500		0.5	%		60,339		83.2	%		83.2	%
64	Bayshore Boulevard	August 17, 2004	Stabilized		3		183,344		1.2	%		183,344		100.0	%		100.0	%
65	Bridgeview Technology Park I	September 10, 2004	Lease Up		2		201,567		1.3	%		125,144		62.1	%		62.1	%
66	Bridgeview Technology Park II	March 16, 2005	Lease Up		1		50,400		0.3	%		28,714		57.0	%		57.0	%
67	550 Broadway Street	April 27, 2012	Stabilized		1		71,239		0.4	%		71,239		100.0	%		100.0	%
68	Dumbarton Circle	May 27, 2005	Lease Up		1		44,000		0.3	%		—		—			—
69	Gateway Business Park	October 26, 2010	Lease Up		4		176,503		1.1	%		153,035		86.7	%		86.7	%
70	Industrial Road	August 17, 2004	Stabilized		1		175,144		1.1	%		175,144		100.0	%		100.0	%
71	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.6	%		49,915		56.8	%		56.8	%
72	Pacific Industrial Center	July 11, 2006	Lease Up		1		305,026		1.9	%		252,119		82.7	%		82.7	%
73	Pacific Research Center North	July 11, 2006	Lease Up		6		661,245		4.2	%		514,597		77.8	%		75.0	%
74	Pacific Research Center South	July 11, 2006	Lease Up		3		423,246		2.7	%		263,543		62.3	%		62.3	%
75	Science Center at Oyster Point	October 26, 2010	Stabilized		2		204,887		1.3	%		204,887		100.0	%		100.0	%
76	Woodside Technology Park	February 28, 2013	Stabilized		3		255,650		1.6	%		255,650		100.0	%		100.0	%

	Total San Francisco				31		2,968,292		18.8	%		2,393,258		80.6	%		80.0	%

	New York / New Jersey
77	Ardsley Park	June 23, 2011	Stabilized		5		160,500		1.0	%		160,500		100.0	%		100.0	%
78	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.5	%		46,386		64.2	%		64.2	%
79	Landmark at Eastview	August 12, 2004	Lease Up		5		800,671		4.7	%		649,099		81.1	%		80.1	%
80	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		2.3	%		360,520		100.0	%		100.0	%
81	Landmark at Eastview III	August 12, 2004	Development		2		297,000		1.9	%		297,000		100.0	%		100.0	%
82	One Research Way	May 31, 2006	Lease Up		1		49,421		0.3	%		—		—			—

	Total New York / New Jersey				17		1,740,412		10.7	%		1,513,505		87.0	%		86.5	%

	Pennsylvania
83	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.4	%		71,500		100.0	%		100.0	%
84	Hershey Center for Applied Research	May 31, 2013	Lease Up		1		80,867		0.5	%		71,016		87.8	%		87.8	%
85	King of Prussia	August 11, 2004	Stabilized		5		374,387		2.3	%		374,387		100.0	%		100.0	%
86	3711 Market Street (3)	May 31, 2013	Stabilized		1		154,793		1.0	%		146,296		94.5	%		88.7	%
87	3737 Market Street (4)	May 31, 2013	Development		1		334,305		2.1	%		184,487		55.2	%		55.2	%
88	Phoenixville Pike	April 5, 2005	Lease Up		1		104,400		0.7	%		39,111		37.5	%		71.3	%
89	Spring Mill Drive	July 20, 2006	Lease Up		1		76,561		0.5	%		63,184		82.5	%		82.5	%
90	900 Uniqema Boulevard	January 13, 2006	Lease Up		1		11,293		0.1	%		—		—			—
91	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.4	%		—		—			—

	Total Pennsylvania				13		1,267,927		8.0	%		949,981		74.9	%		77.0	%

	Cambridge, UK
92	Granta Park	June 12, 2012	Stabilized		11		472,234		3.0	%		470,015		99.5	%		99.3	%

	Total Cambridge, UK				11		472,234		3.0	%		470,015		99.5	%		99.3	%

	North Carolina
93	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.4	%		61,603		100.0	%		100.0	%
94	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.3	%		40,541		83.8	%		83.8	%
95	Piedmont Triad Research - Wake 90	May 31, 2013	Development		1		475,742		3.0	%		396,734		83.4	%		76.2	%
96	Wake Forest Biotech Place	May 31, 2013	Stabilized		1		242,000		1.5	%		242,000		100.0	%		100.0	%
97	Weston Parkway	December 17, 2010	Stabilized		1		30,589		0.2	%		30,589		100.0	%		100.0	%

	Total North Carolina				5		858,328		5.4	%		771,467		89.9	%		85.9	%

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

SEPTEMBER 30, 2013


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		9/30/13			6/30/13
	Seattle
98	Elliott Avenue	August 24, 2004	Lease Up		1		151,194		0.9	%		84,657		56.0	%		56.0	%
99	530 Fairview Avenue	January 12, 2006	Stabilized		1		96,305		0.6	%		96,305		100.0	%		100.0	%
100	Monte Villa Parkway	August 17, 2004	Lease Up		1		51,000		0.3	%		30,167		59.2	%		59.2	%
101	217th Place	November 21, 2006	Lease Up		1		67,799		0.4	%		54,013		79.7	%		79.7	%

	Total Seattle				4		366,298		2.2	%		265,142		72.4	%		72.4	%

	University Related - Other
102	BRDG Park at Danforth Plant Science Center	May 31, 2013	Lease Up		1		109,731		0.7	%		88,380		80.5	%		83.1	%
103	4320 Forest Park Avenue	May 31, 2013	Stabilized		1		152,664		1.0	%		152,664		100.0	%		100.0	%
104	Heritage @ 4240	May 31, 2013	Development		1		183,842		1.2	%		111,500		60.6	%		49.8	%
105	Innovation Research Park at ODU I	May 31, 2013	Stabilized		1		95,634		0.6	%		86,094		90.0	%		90.0	%
106	Innovation Research Park at ODU II	May 31, 2013	Lease Up		1		95,670		0.6	%		71,661		74.9	%		66.5	%
107	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.5	%		78,023		100.0	%		100.0	%
108	University of Miami Life Science & Technology Park	May 31, 2013	Lease Up		1		251,800		1.6	%		178,907		71.1	%		72.0	%
109	University Tech Park at IIT	May 31, 2013	Stabilized		1		128,000		0.8	%		128,000		100.0	%		100.0	%
110	Walnut Street	July 7, 2006	Stabilized		4		149,984		0.9	%		149,984		100.0	%		100.0	%

	Total University Related - Other				13		1,245,348		7.9	%		1,045,213		83.9	%		82.1	%

	Total				181		15,931,394		100.0	%		13,859,034		87.0	%		86.8	%

(1)	For a definition of Property Status, see page 36.

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

(3)	The Company owns 60% of the limited liability company that owns the 3711 Market Street property.

(4)	The Company owns 68% of the limited liability company that owns the 3737 Market Street property.

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DEVELOPMENT, REDEVELOPMENT AND DEVELOPMENT POTENTIAL

SEPTEMBER 30, 2013

(Dollars in thousands)


Property	Market	Rentable Square Feet		Percent Leased			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
Development:
Heritage @ 4240	University Related - Other		183,842		60.6	%	$	17,300	$	22,400		Q1 2014
450 Kendall Street (Kendall G)	Boston		63,000		—			9,300		44,100		Q3 2015
Landmark at Eastview III	New York / New Jersey		297,000		100.0	%		7,100		152,700		Q3 2015
3737 Market Street	Pennsylvania		334,305		55.2	%		29,600		101,400		Q4 2014
Piedmont Triad Research - Wake 90	North Carolina		475,742		83.4	%		59,100		63,500		Q1 2014

Total / weighted-average			1,353,889		73.1	%	$	122,400	$	384,100
Redevelopment:
60 Hampshire Street	Boston		39,014		—		$	4,300	$	16,600		Q1 2015
1701 / 1711 Research Blvd	Maryland		104,743		100.0	%		15,900		28,200		Q1 2014

Total / weighted-average			143,757		72.9	%	$	20,200	$	44,800
Total							$	142,600	$	428,900


Development Potential:			Estimated		Total
	Pre-Development		Developable		Development
Market	Square Feet		Square Feet		Potential
Boston		—		50,000		50,000
Maryland		—		974,000		974,000
San Diego		275,000		—		275,000
San Francisco		660,000		1,334,000		1,994,000
New York / New Jersey		—		667,000		667,000
Pennsylvania		—		103,000		103,000
Cambridge, UK		—		138,000		138,000
Seattle		108,000		40,000		148,000

Total		1,043,000		3,306,000		4,349,000

(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 September 30, 2013.

(2)	Includes construction 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.

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CAPITAL EXPENDITURES

SEPTEMBER 30, 2013

(Dollars in thousands)


Capital Expenditures:	Three Months Ended
	9/30/13		6/30/13		3/31/13		12/31/12		9/30/12

Development / Pre-Development	$	42,184	$	5,003	$	3,241	$	1,832	$	1,540
Redevelopment		752		494		1,395		1,411		2,429
Tenant improvements - first generation (1)		5,572		6,446		13,933		11,831		19,727
Recurring capital expenditures and second generation tenant improvements (1) (2)		9,857		12,599		9,795		5,738		2,739
Other capital		8,532		12,144		10,886		7,853		4,067

Total capital expenditures	$	66,897	$	36,686	$	39,250	$	28,665	$	30,502


Capitalized Interest:	Investment		Three Months Ended
	to Date (3)		9/30/13			6/30/13			3/31/13			12/31/12			9/30/12

Development	$	122,400	$	1,367		$	522		$	—		$	—		$	—
Redevelopment		20,200		294			297			611			630			618
Other Capital Improvements (4)		95,500		947			948			755			742			434
Pre-Development		114,000		1,376			1,409			1,474			896			874

Total capitalized interest	$	352,100	$	3,984		$	3,176		$	2,840		$	2,268		$	1,926

Average interest rate capitalized				4.88	%		5.24	%		5.20	%		5.22	%		5.21	%

(1)	For definitions of first and second generation leases, see page 36.

(2)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. For a definition of recurring capital expenditures, see page 36.

(3)	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 September 30, 2013.

(4)	Includes improvements on operating properties, including major tenant improvement projects on properties which are not considered to be in Development, Redevelopment or Pre-development during the three months ended September 30, 2013.

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PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS

SEPTEMBER 30, 2013

(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

9/30/13

6/30/13

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

282,217

201,648

71.5

44.7

Boston

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1,409 Stalls

100.0

Boston


Total assets	$	269,269
Total debt (2)		151,954
Current annualized base rent		12,868
BioMed’s net investment in unconsolidated partnerships	$	31,871
BioMed’s pro rata share of debt		29,138
BioMed ownership percentage		20	%

(1)	For a definition of Property Status, see page 36.

(2)	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

SEPTEMBER 30, 2013

The weighted-average remaining lease terms are 8 years for the consolidated portfolio and 8.1 years for the total portfolio.


						Current (1)							Expiration (2)
Expiration	Leased Square Feet		Percent of Leased Square Feet			Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet
						(In thousands)							(In thousands)
Month-to-month		10,919		0.1	%	$	159		—		$	14.56	$	159		—		$	14.56
Fourth quarter 2013		61,564		0.4	%		2,771		0.5	%		45.01		3,041		0.5	%		49.40

2013		61,564		0.4	%		2,771		0.5	%		45.01		3,041		0.5	%		49.40
2014		891,436		6.3	%		25,256		4.9	%		28.33		25,174		4.2	%		28.24
2015		607,613		4.3	%		18,737		3.7	%		30.84		19,251		3.2	%		31.68
2016		1,185,273		8.4	%		45,394		8.9	%		38.30		47,979		8.1	%		40.48
2017		635,506		4.5	%		18,656		3.6	%		29.36		20,526		3.5	%		32.30
2018		1,833,825		13.0	%		81,592		15.9	%		44.49		85,283		14.4	%		46.51
2019		909,116		6.4	%		26,648		5.2	%		29.31		29,878		5.0	%		32.86
2020		825,092		5.8	%		32,618		6.4	%		39.53		32,322		5.4	%		39.17
2021		599,139		4.2	%		17,570		3.4	%		29.33		19,905		3.4	%		33.22
2022		741,347		5.2	%		17,949		3.5	%		24.21		22,476		3.8	%		30.32
Thereafter		5,832,715		41.4	%		225,273		44.0	%		38.62		287,430		48.5	%		49.28

Total / weighted-average		14,133,545		100.0	%	$	512,623		100.0	%	$	36.27	$	593,424		100.0	%	$	41.99

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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

SEPTEMBER 30, 2013


	Leased Square Feet
Expiration	Boston		Maryland		San Diego		San Francisco		New York/ New Jersey		Pennsylvania		Cambridge, UK		North Carolina		Seattle		University/ Other		Total
Month-to-month		—		6,655		728		—		630		2,906		—		—		—		—		10,919
2013		—		—		34,661		26,429		—		—		—		—		—		474		61,564
2014		127,532		61,668		86,006		136,769		4,043		412,844		1,827		—		11,385		49,362		891,436
2015		54,648		30,668		290,002		116,005		2,833		38,559		22,614		16,492		—		35,792		607,613
2016		416,184		13,098		44,550		273,632		40,613		32,797		1,103.00		92,192		36,885		234,219		1,185,273
2017		104,243		107,288		104,670		138,627		138,013		24,440		—		—		11,390		6,835		635,506
2018		1,144,843		72,004		332,621		171,584		24,944		14,389		—		15,117		42,628		15,695		1,833,825
2019		24,215		259,383		81,204		152,210		—		41,391		117,919		8,932		49,664		174,198		909,116
2020		367,010		130,846		72,863		49,915		28,899		33,029		136,434		—		—		6,096		825,092
2021		32,265		45,434		8,365		230,311		40,914		71,500		160,290		10,060.00		—		—		599,139
2022		42,385		4,399		17,707		629,346		27,524		6,146		—		—		—		13,840		741,347
Thereafter		765,612		1,145,710		695,497		468,430		1,205,092		271,980		29,828		628,674		113,190		508,702		5,832,715

Total		3,078,937		1,877,153		1,768,874		2,393,258		1,513,505		949,981		470,015		771,467		265,142		1,045,213		14,133,545

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10 LARGEST TENANTS

SEPTEMBER 30, 2013

BioMed’s properties were leased to 299 tenants.


	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1) (In thousands)		Annualized Base Rent per Leased Sq Ft Current		Percent of Annualized Base Rent Current Total Portfolio			Lease Expiration
1	GlaxoSmithKline plc (2)		924,970		6.5	%	$	45,373	$	49.05		8.9	%		June 2026
2	Regeneron Pharmaceuticals, Inc. (3)		1,001,718		7.1	%		40,079		40.01		7.8	%		Multiple
3	Vertex Pharmaceuticals Incorporated (4)		685,286		4.8	%		36,401		53.12		7.1	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		2.6	%		26,823		74.02		5.2	%		July 2023
5	Sanofi (5)		418,003		3.0	%		22,790		54.52		4.4	%		Multiple
6	Ironwood Pharmaceuticals, Inc.		303,259		2.1	%		15,340		50.58		3.0	%		February 2018
7	Children’s Hospital Corporation (6)		200,081		1.4	%		14,360		71.77		2.8	%		May 2023
8	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		2.6	%		9,267		24.75		1.8	%		April 2014
9	Bristol-Myers Squibb (7)		270,047		1.9	%		8,999		33.32		1.8	%		Multiple
10	MedImmune, Inc. (8)		245,808		1.7	%		8,506		34.60		1.7	%		Multiple

	Total / weighted-average (9)		4,785,923		33.7	%	$	227,938	$	47.63		44.5	%

(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)

On April 3, 2013, the Company entered into a build-to-suit transaction to construct two new buildings pre-leased to Regeneron for a 15 year term totaling approximately 297,000 square feet at Landmark at Eastview. 2,833 square feet expire July 2015, 312,525 square feet expire July 2024 and 686,360 square feet expire July 2029.

(4)	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.

(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)	77,539 square feet expire February 2015, 29,218 square feet expire April 2018, 133,123 square feet expire December 2022 and 30,167 square feet expire April 2024.

(8)	46,013 square feet expire December 2015, 39,505 square feet expire January 2021 and 160,290 square feet expire December 2021.

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

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SAME PROPERTY ANALYSIS

SEPTEMBER 30, 2013

(Dollars in thousands)


	Three Months Ended
	9/30/13			9/30/12			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		12,704,561			12,704,561
Percent of total portfolio		78.0	%		97.6	%
Percent leased		87.6	%		86.6	%
Revenues:
Rental	$	103,324		$	99,504			3.8	%
Tenant recoveries		36,620			32,952			11.1	%

Total revenues		139,944			132,456			5.7	%
Expenses:
Rental operations		42,626			38,846			9.7	%

Same property net operating income (2)	$	97,318		$	93,610			4.0	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(1,769	)		(3,237	)		(45.4	%)

Same property net operating income - cash basis (2) (3)	$	95,549		$	90,373			5.7	%

Rental revenue - cash basis (3)	$	100,730		$	95,281			5.7	%

Same property net operating income, excluding 180 and 200 Oyster Point properties (2) (4)	$	95,232		$	90,660			5.0	%

Same property net operating income - cash basis, excluding 180 and 200 Oyster Point properties (2) (3) (4)	$	93,852		$	87,730			7.0	%

(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 35. 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)	The 180 and 200 Oyster Point properties were leased by Life Technologies commencing in the quarter ending June 30, 2013, following a lease termination by Elan Corporation for which the Company received a $46.5 million termination payment.

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ACQUISITIONS, MERGERS AND DISPOSITIONS

SEPTEMBER 30, 2013


Acquisitions and Mergers Detail for 2013:	Market	Closing Date	Rentable Square Feet		Investment		Percent Leased at Acquisition

Property
					(In thousands)
First Quarter 2013
Woodside Technology Park	San Francisco	February 28, 2013		255,650	$	87,000		100.0	%
The Campus at Lincoln Centre (1)	San Francisco	March 20, 2013		—		37,000		n/a

First quarter total				255,650	$	124,000		100.0	%


Second Quarter 2013
Wexford Science & Technology (2)	Various	May 31, 2013		2,555,174	$	669,100		81.2	%
320 Charles Street (3)	Boston	June 18, 2013		99,513		49,518		100.0	%

Second quarter total				2,654,687	$	718,618		81.9	%

Third Quarter 2013
None
Total 2013 Acquisitions & Mergers				2,910,337	$	842,618		83.5	%

Dispositions Detail for 2013:

Market

Closing Date

Rentable
Square
Feet

Gross
Proceeds

Property

(In thousands)

First Quarter 2013

None

Second Quarter 2013

None

Third Quarter 2013

Lucent

University Related - Other

July 31, 2013

21,500

5,900

Eisenhower Avenue

Pennsylvania

September 4, 2013

27,750

2,100

Third quarter total

49,250

8,000

Total 2013 Dispositions

49,250

8,000

(1)	Includes approximately 280,000 square feet of potential development.

(2)

Includes approximately 935,000 square feet in development and approximately 300,000 square feet of potential development. Investment includes the issuance of 5,568,227 shares of common stock of the Company and 336,960 operating partnership units of BioMed Realty, L.P. to the sellers as part of the consideration for the merger.

(3)	Investment includes the issuance of 2,034,211 operating partnership units of BioMed Realty, L.P. to the seller as part of the consideration for the acquisition.

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LEASING ACTIVITY (1)

SEPTEMBER 30, 2013


	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 June 30, 2013		14,050,030					157,250
Dispositions		(27,750	)	$	10.57
Expirations		(337,413	)		39.22
Terminations		(35,297	)		36.97
Pre-leased delivery		143,877			50.98		(143,877	)	$	50.98
Renewals, amendments, and extensions		110,563			23.89
New leases - 1st generation (2)		199,909			33.01
New leases - 2nd generation (2)		29,626			28.43

Leased Square Feet as of September 30, 2013		14,133,545					13,373


	Three Months Ended
Leased Square Feet	9/30/13		6/30/13			3/31/13			12/31/12		9/30/12
Renewals, amendments, and extensions		110,563		475,250			164,004			368,299		176,655
New leases		229,535		422,770			419,731			256,576		190,705

Gross Leasing Activity		340,098		898,020			583,735			624,875		367,360

Net Absorption (3)		111,265		(45,377	)		(180,165	)		144,516		115,493

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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 36.

(3)

For the quarter ended June 30, 2013, excludes the Regeneron lease for approximately 297,000 square feet at the Landmark at Eastview III property. Under the lease, Regeneron will expand into two new buildings to be constructed by the Company at the property. Regeneron has leased the to-be-built laboratory and office space for a 15-year term.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS AND TENANT CONCESSIONS

SEPTEMBER 30, 2013


	Three Months Ended
	9/30/13		6/30/13		3/31/13		12/31/12		9/30/12
Renewals, Amendments, and Extensions (1)
Number of renewals		13		12		13		17		6
Square feet		110,563		475,250		164,004		368,299		176,655
Tenant improvement costs per square foot (2)	$	—	$	1.42	$	15.21	$	1.23	$	21.68
Leasing commission costs per square foot (2)		0.65		4.28		0.58		3.54		6.23
Tenant concession costs per square foot (2) (3)		1.21		0.03		2.88		17.01		2.60

Total tenant improvement, leasing commission, and tenant concession costs psf	$	1.86	$	5.73	$	18.67	$	21.78	$	30.51

New Leases - 1st Generation (4)
Number of leases		16		6		7		5		8
Square feet		199,909		383,717		65,779		149,987		100,992
Tenant improvement costs per square foot (2)	$	105.63	$	88.59	$	39.46	$	61.97	$	1.14
Leasing commission costs per square foot (2)		9.81		10.69		7.99		7.25		7.77
Tenant concession costs per square foot (2) (3)		19.96		19.11		4.99		22.00		4.93

Total tenant improvement, leasing commission, and tenant concession costs psf	$	135.40	$	118.39	$	52.44	$	91.22	$	13.84

New Leases - 2nd Generation (4)
Number of leases		8		2		9		8		8
Square feet		29,626		39,053		353,952		106,589		89,713
Tenant improvement costs per square foot (2)	$	0.71	$	27.05	$	26.03	$	16.86	$	46.58
Leasing commission costs per square foot (2)		0.72		8.12		15.90		8.99		7.48
Tenant concession costs per square foot (2) (3)		1.62		—		3.51		10.15		1.55

Total tenant improvement, leasing commission, and tenant concession costs psf	$	3.05	$	35.17	$	45.44	$	36.00	$	55.61

Total
Number of renewals/leases		37		20		29		30		22
Square feet		340,098		898,020		583,735		624,875		367,360
Tenant improvement costs per square foot (2)	$	62.15	$	39.78	$	24.50	$	18.47	$	22.42
Leasing commission costs per square foot (2)		6.04		7.19		10.70		5.36		6.96
Tenant concession costs per square foot (2) (3)		12.26		8.18		3.50		17.04		2.97

Total tenant improvement, leasing commission, and tenant concession costs psf	$	80.45	$	55.15	$	38.70	$	40.87	$	32.35

(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 36.

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NON-GAAP FINANCIAL MEASURE DEFINITIONS

SEPTEMBER 30, 2013

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 securities, (e) gains or losses from sales of real estate and (f) acquisition-related expenses, and by subtracting from EBITDA the lease termination fee related to the Elan Corporation lease termination at our Science Center at Oyster Point property in 2013. 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

SEPTEMBER 30, 2013

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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