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

Attached files

file	filename
8-K - FORM 8-K - BioMed Realty Trust Inc	d771913d8k.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	d771913dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

JUNE 30, 2014


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

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TABLE OF CONTENTS

JUNE 30, 2014


	Page			Page
Second Quarter Highlights		3	Common 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	Future Lease Commencements		32
Reconciliation of Net Operating Income		15	Acquisitions		33
Interest Expense		16	Leasing Activity		34
Coverage Ratios		17	Tenant Improvements, Leasing Commissions and Tenant Concessions
Debt Summary		18			35
Debt Maturities		19	Non-GAAP Financial Measure Definitions		36
			Definitions		37

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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SECOND QUARTER HIGHLIGHTS

JUNE 30, 2014

Financial and Operating Performance

•

Executed 63 leasing transactions during the quarter representing approximately 812,200 square feet, contributing to an increase in the operating portfolio leased percentage on a weighted-average basis of 92.0% at quarter end;

•

Increased same property net operating income on a cash basis by 6.7% year-over-year;

•

Set new company records for total and rental revenues of approximately $171.2 million and $120.9 million, respectively; and

•

Generated funds from operations (FFO) and core funds from operations (CFFO) of $0.40 per diluted share and adjusted funds from operations (AFFO) of $0.32 per diluted share, and reported net income available to common stockholders for the quarter of approximately $18.6 million, or $0.10 per diluted share.

Acquisitions and Development

•

Added approximately one million square feet to the company’s portfolio through its fully-leased investment in the 300 George Street and 100 College Street properties adjacent to the Yale School of Medicine in New Haven, Connecticut;

•

Initiated a new, fully-leased build-to-suit investment to comprise approximately 42,400 square feet of laboratory and office space in the Cambridge Science Park in Cambridge, United Kingdom. The property is 100% pre-leased to Takeda Pharmaceutical Company Limited for 16 years;

•

Commenced construction of a 121,600 square foot laboratory and office building at the BioMed Realty Research Center (formerly 500 Fairview Avenue) in Seattle, Washington;

•

Entered into a 99-year ground lease on a 10-acre site in Philidelphia for future development through a collaboration between Drexel University and Wexford Science & Technology, a subsidiary of BioMed Realty; and

•

Received an early payoff of the company’s investment in the construction loan for the Fan Pier development project in Boston, Massachusetts, totaling $199.3 million, reflecting the repayment of $191.2 million in principal and accrued interest receivable, and prepayment fees of approximately $8.1 million.

Financing Activity

•

Repaid in full the $333.4 million principal amount outstanding on its mortgage loan secured by the Center for Life Science | Boston, which bore interest at 7.75% per annum;

•

Received an upgrade on the company’s investment grade corporate credit rating from Standard & Poor’s Ratings Services to BBB, after receiving a positive outlook from Moody’s Investors Service in March 2014; and

•

Completed a public offering of $400 million aggregate principal amount of 2.625% Senior Notes due 2019, priced at 99.408% of the principal amount to yield 2.752% to maturity.

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 17.2 million rentable square feet. Additional information is available at www.biomedrealty.com. Follow us on Twitter @biomedrealty.

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INVESTOR INFORMATION

JUNE 30, 2014


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	Karen A. Sztraicher	James R. Berens
Chairman	Chairman and	Executive Vice President,	President
Daniel M. Bradbury	Chief Executive Officer	Asset Management	Wexford Science & Technology
William R. Brody, M.D., Ph.D.	R. Kent Griffin, Jr.	Jonathan P. Klassen	Sandy N. Weeks, Esq.
Gary A. Kreitzer	President and	Senior Vice President,	Senior Vice President and
Theodore D. Roth	Chief Operating Officer	General Counsel and Secretary	General Counsel
Janice. L. Sears	Gary A. Kreitzer	John P. Bonanno	Wexford Science & Technology
M. Faye Wilson	Executive Vice President, Director	Senior Vice President,	Daniel C. Cramer
	Matthew G. McDevitt	Leasing & Development	Senior Vice President, Development
	Executive Vice President, Real Estate		Wexford Science & Technology
	Greg N. Lubushkin
	Chief Financial Officer

Tentative Schedule for Quarterly Results
Third Quarter 2014	October 29, 2014
Fourth Quarter 2014	February 4, 2015
First Quarter 2015	April 29, 2015
Second Quarter 2015	July 29, 2015

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EQUITY RESEARCH COVERAGE

JUNE 30, 2014


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	Michael Knott Conor Wagner	(949) 640-8780	mknott@greenst.com cwagner@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

MLV & Co.	Paul Morgan Joe Ng	(415) 325-4187 (646) 412-7736	pmorgan@mlvco.com jng@mlvco.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 Nick Yulico	(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

JUNE 30, 2014

(In thousands, except per share and ratio amounts)


	Three Months Ended
Selected Operating Data	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Rental revenues	$	120,924		$	120,026		$	118,048		$	116,884		$	108,092
Total revenues		171,161			168,876			157,993			159,232			159,639
EBITDA (1)		104,445			109,893			97,419			95,093			105,389
Adjusted EBITDA (1)		105,717			99,787			97,735			95,659			94,196
Net operating income - cash basis (2)		105,743			103,843			103,382			100,465			98,031
General and administrative expense		12,443			11,942			11,817			11,934			10,396
Acquisition-related expenses		1,134			1,250			19			907			2,120
Capitalized interest		5,423			4,192			4,207			3,984			3,176
Interest expense, net		23,131			28,010			27,837			27,870			26,119
Operating margin (3)		66.7	%		66.9	%		67.9	%		66.8	%		70.2	%
General and administrative expense / Total revenues		7.3	%		7.1	%		7.5	%		7.5	%		6.5	%
Change in same property net operating income - cash basis (4)		6.7	%		6.8	%		6.6	%		5.7	%		2.5	%
Net income available to common stockholders		18,636			18,833			10,279			4,247			14,803
Net income per share - diluted	$	0.10		$	0.10		$	0.05		$	0.02		$	0.08
FFO - diluted (5)		83,378			83,383			70,997			67,586			80,514
FFO per share - diluted (5)	$	0.40		$	0.40		$	0.34		$	0.33		$	0.40
CFFO - diluted (5)		84,512			84,633			71,016			68,493			82,634
CFFO per share - diluted (5)	$	0.40		$	0.41		$	0.34		$	0.33		$	0.41
AFFO - diluted (5)		67,322			79,511			65,395			60,719			73,951
AFFO per share - diluted (5)	$	0.32		$	0.38		$	0.31		$	0.29		$	0.37
Dividend per share - common stock	$	0.250		$	0.250		$	0.250		$	0.235		$	0.235
CFFO payout ratio (6)		62.5	%		61.0	%		73.5	%		71.2	%		57.3	%
AFFO payout ratio (6)		78.1	%		65.8	%		80.6	%		81.0	%		63.5	%

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(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 36. 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 36. 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

JUNE 30, 2014

(In thousands, except per share and ratio amounts)


Capitalization		6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Total common shares outstanding			192,526			192,503			192,115			192,107			191,948
Total units outstanding (1)			5,405			5,405			5,416			5,416			5,416

Total common shares and units outstanding			197,931			197,908			197,531			197,523			197,364
Common share price at quarter end		$	21.83		$	20.49		$	18.12		$	18.59		$	20.23

Equity value at quarter end		$	4,320,839		$	4,055,134		$	3,579,261		$	3,671,947		$	3,992,675
Consolidated debt			2,841,063			2,761,337			2,664,834			2,560,173			2,524,960

Total capitalization		$	7,161,902		$	6,816,471		$	6,244,095		$	6,232,120		$	6,517,635

Debt / Total assets			46.1	%		45.5	%		44.6	%		43.4	%		43.1	%
Debt / Total gross assets			40.3	%		40.0	%		39.4	%		38.6	%		38.5	%
Debt / Total capitalization			39.7	%		40.5	%		42.7	%		41.1	%		38.7	%
Coverage Ratios (2)
Net Debt / Adjusted EBITDA (3)			6.6			6.8			6.7			6.6			6.5
Interest coverage			5.2			3.9			3.9			3.8			4.0
Fixed charge coverage			4.7			3.6			3.5			3.5			3.7
Total Consolidated Debt
Secured debt / Total gross assets			6.5	%		10.2	%		10.5	%		10.8	%		11.6	%
Floating rate debt / Total debt			33.6	%		35.7	%		33.3	%		30.4	%		27.0	%
Adjusted floating rate debt / Total debt (4)			13.5	%		15.2	%		12.1	%		8.5	%		13.0	%
Unencumbered real estate / Total real estate			86.3	%		76.9	%		76.7	%		73.9	%		74.3	%
Unencumbered CABR / Total CABR (5)			83.2	%		77.3	%		76.9	%		75.8	%		76.5	%
Unsecured line of credit capacity		$	745,000		$	674,000		$	772,000		$	880,000		$	510,000

Bond Covenants (6)	Requirements
Total outstanding debt / Total assets	Must be £ 60%		41.5	%		40.8	%		40.4	%		39.6	%		39.6	%
Secured debt / Total assets	Must be £ 40%		6.6	%		10.4	%		10.7	%		11.1	%		11.9	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		4.0			3.6			3.6			3.6			3.7
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		240	%		249	%		253	%		265	%		278	%
Unencumbered assets / Unsecured debt - Notes due 2016, 2019 and 2022	Must be ³ 150%		239	%		247	%		252	%		263	%		276	%

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

(2)	For discussion of coverage ratios, see page 36. 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)	For discussion on bond covenants, see page 37.

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PORTFOLIO SUMMARY

JUNE 30, 2014


	Gross Book Value		Buildings		Rentable Square Feet		Weighted- Average Leased % (1)
	(In thousands)
Operating portfolio	$	5,661,527		173		15,404,304		92.0	%
Development (2)		290,897		7		1,368,703		81.7	%
Redevelopment (2)		11,848		1		41,257		86.5	%
Unconsolidated partnership portfolio (3)		32,440		3		355,080		77.3	%
Pre-Development (2)		115,679		—		1,099,000		—
Development potential (2)		282,150		—		6,383,000		—

Total portfolio	$	6,394,541		184		24,651,344

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

(2)	See page 25 for detail and page 37 for definitions of terms.

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

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CONSOLIDATED BALANCE SHEETS

JUNE 30, 2014

(In thousands)


	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Assets
Investments in real estate, net	$	5,474,648		$	5,235,036		$	5,217,902		$	5,172,102		$	5,131,507
Investments in unconsolidated partnerships		32,440			31,461			32,137			31,978			32,250
Cash and cash equivalents		39,004			59,121			34,706			29,230			27,666
Accounts receivable, net		9,686			10,719			8,421			10,580			6,274
Accrued straight-line rents, net		181,705			178,114			173,779			169,272			163,287
Deferred leasing costs, net		236,848			189,527			198,067			202,393			213,567
Other assets		185,406			371,453			307,589			278,600			289,232

Total assets	$	6,159,737		$	6,075,431		$	5,972,601		$	5,894,155		$	5,863,783

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	456,034		$	706,013		$	709,324		$	716,733		$	821,582
Exchangeable senior notes, net		180,000			180,000			180,000			180,000			180,000
Unsecured senior notes, net		1,293,246			895,312			895,083			894,850			894,622
Unsecured senior term loans		764,106			760,066			758,786			755,226			395,676
Unsecured line of credit		155,000			226,000			128,000			20,000			240,000
Accounts payable, accrued expenses, and other liabilities		358,958			333,157			314,383			311,287			281,780

Total liabilities		3,207,344			3,100,548			2,985,576			2,878,096			2,813,660
Equity:
Stockholders’ equity:
Common stock		1,925			1,925			1,921			1,921			1,919
Additional paid-in capital		3,557,886			3,554,504			3,554,558			3,552,595			3,549,082
Accumulated other comprehensive loss, net		(24,088	)		(19,973	)		(32,923	)		(38,618	)		(43,094	)
Dividends in excess of earnings		(642,360	)		(612,864	)		(583,569	)		(545,819	)		(504,921	)

Total stockholders’ equity		2,893,363			2,923,592			2,939,987			2,970,079			3,002,986
Noncontrolling interests		59,030			51,291			47,038			45,980			47,137

Total equity		2,952,393			2,974,883			2,987,025			3,016,059			3,050,123

Total liabilities and equity	$	6,159,737		$	6,075,431		$	5,972,601		$	5,894,155		$	5,863,783

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CONSOLIDATED STATEMENTS OF OPERATIONS

JUNE 30, 2014

(In thousands, except share and per share data)


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Revenues:
Rental	$	120,924		$	120,026		$	118,048		$	116,884		$	108,092
Tenant recoveries		40,280			38,735			37,597			38,907			32,494
Other revenue		9,957			10,115			2,348			3,441			19,053

Total revenues		171,161			168,876			157,993			159,232			159,639

Expenses:
Rental operations		53,636			52,523			49,891			51,688			41,941
Depreciation and amortization		62,736			62,409			58,781			61,898			63,557
General and administrative		12,443			11,942			11,817			11,934			10,396
Acquisition-related expenses		1,134			1,250			19			907			2,120

Total expenses		129,949			128,124			120,508			126,427			118,014

Income from operations		41,212			40,752			37,485			32,805			41,625
Equity in net loss of unconsolidated partnerships		(10	)		(138	)		(208	)		(112	)		(267	)
Interest expense, net		(23,131	)		(28,010	)		(27,837	)		(27,870	)		(26,119	)
Other income/(expense)		1,027			8,163			1,136			(687	)		(202	)

Net income		19,098			20,767			10,576			4,136			15,037
Net (income)/loss attributable to noncontrolling interests		(462	)		(1,934	)		(297	)		111			(234	)

Net income available to common stockholders	$	18,636		$	18,833		$	10,279		$	4,247		$	14,803

Income from continuing operations per share available to common stockholders:
Basic and diluted earnings per share	$	0.10		$	0.10		$	0.05		$	0.02		$	0.08

Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.10		$	0.10		$	0.05		$	0.02		$	0.08

Weighted-average common shares outstanding:
Basic		191,003,248			190,905,867			190,664,323			190,646,722			186,735,157

Diluted		196,800,354			196,545,536			196,117,552			196,131,643			190,151,166

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

JUNE 30, 2014

(In thousands)


	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Restricted cash	$	9,096		$	11,190		$	11,500		$	9,386		$	71,046
Acquired above-market leases, net		13,262			14,380			15,828			17,052			18,349
Acquired below-market ground lease, net		25,575			21,865			21,983			19,648			19,767
Deferred loan costs, net		18,652			17,291			18,771			20,407			15,442
Lease incentives, net		19,988			19,135			19,639			20,138			20,627
Construction loan receivable, net (1)		—			191,280			151,823			120,948			92,567
Other		98,833			96,312			68,045			71,021			51,434

Other assets	$	185,406		$	371,453		$	307,589		$	278,600		$	289,232

Security deposits	$	14,348		$	13,833		$	13,728		$	13,538		$	13,667
Dividends and distributions payable		49,483			49,477			49,383			46,418			46,381
Accounts payable, accrued expenses and other liabilities		253,259			231,073			210,986			207,967			178,125
Derivative instruments		2,909			2,154			2,165			2,620			1,439
Acquired below-market leases, net		38,959			36,620			38,121			40,744			42,168

Accounts payable, accrued expenses and other liabilities	$	358,958		$	333,157		$	314,383		$	311,287		$	281,780

	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Lease termination revenue	$	1,023		$	5,287		$	—		$	1,504		$	17,316
Construction loan revenue (2)		8,653			2,557			2,190			1,824			1,319
Other revenue		281			2,271			158			113			418

Other revenue	$	9,957		$	10,115		$	2,348		$	3,441		$	19,053

Rental operations expenses	$	39,511		$	38,039		$	35,450		$	36,222		$	28,397
Real estate taxes		14,125			14,484			14,441			15,466			13,544

Rental operations	$	53,636		$	52,523		$	49,891		$	51,688		$	41,941

Non-cash adjustment for securities		(50	)		—			—			—			—
(Loss)/gain on derivative instruments		(270	)		161			296			121			—
Gain on sale of assets		—			—			—			230			—
Other investment loss		—			(1,319	)		(107	)		(1,135	)		—
Realized gain on securities		546			9,322			787			354			82
Realized gain on foreign currency transactions		100			29			56			190			7
Income tax benefit/(expense)		701			(30	)		104			(447	)		(291	)

Other income/(expense)	$	1,027		$	8,163		$	1,136		$	(687	)	$	(202	)

(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, which was repaid in May 2014 prior to maturity.

(2)	Construction loan revenue for the three months ended June 30, 2014 includes a prepayment fee of approximately $7.5 million, net of deferred loan fees write-offs.

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FFO, CFFO AND AFFO (1)

JUNE 30, 2014

(In thousands)


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Reconciliation of net income available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income available to common stockholders	$	18,636		$	18,833		$	10,279		$	4,247		$	14,803
Adjustments:
Gain on sale of assets		—			—			—			(230	)		—
Noncontrolling interests in operating partnership		514			521			285			118			263
Depreciation & amortization - unconsolidated partnerships		403			373			382			380			367
Depreciation & amortization - consolidated entities		62,736			62,409			58,781			61,898			63,557
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(599	)		(441	)		(418	)		(515	)		(164	)

Funds from operations (FFO) - basic	$	81,690		$	81,695		$	69,309		$	65,898		$	78,826
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	83,378		$	83,383		$	70,997		$	67,586		$	80,514
Acquisition-related expenses		1,134			1,250			19			907			2,120

CFFO - diluted	$	84,512		$	84,633		$	71,016		$	68,493		$	82,634


Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements (3)		(21,553	)		(7,731	)		(8,028	)		(9,857	)		(12,599	)
Leasing commissions		(1,929	)		(1,910	)		(1,780	)		(1,703	)		(1,985	)
Loss/(gain) on derivative instruments		270			(161	)		(296	)		(121	)		—
Non-cash adjustment for securities		50			—			—			—			—
Non-cash debt adjustments		3,298			3,094			3,106			3,426			3,059
Amortization of lease incentives		561			557			563			561			543
Depreciation included in general and administrative expense		757			740			647			629			565
Non-cash equity compensation		3,729			3,750			3,285			3,489			3,067
Straight line rents		(1,949	)		(3,194	)		(2,983	)		(4,078	)		(4,269	)
Share of unconsolidated partnership adjustments (4)		18			18			18			24			31
Fair-value lease revenue		(442	)		(285	)		(153	)		(144	)		2,905

AFFO - diluted	$	67,322		$	79,511		$	65,395		$	60,719		$	73,951

(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 36.

(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 37.

(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)

JUNE 30, 2014

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


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
FFO - basic	$	81,690		$	81,695		$	69,309		$	65,898		$	78,826
FFO - diluted		83,378			83,383			70,997			67,586			80,514
CFFO - diluted		84,512			84,633			71,016			68,493			82,634
AFFO - diluted		67,322			79,511			65,395			60,719			73,951
FFO per share - basic	$	0.41		$	0.41		$	0.35		$	0.33		$	0.41
FFO per share - diluted (2)		0.40			0.40			0.34			0.33			0.40
CFFO per share - diluted (2)		0.40			0.41			0.34			0.33			0.41
AFFO per share - diluted (2)		0.32			0.38			0.31			0.29			0.37
Dividends and distributions declared per common share	$	0.250		$	0.250		$	0.250		$	0.235		$	0.235

CFFO payout ratio		62.5	%		61.0	%		73.5	%		71.2	%		57.3	%
AFFO payout ratio		78.1	%		65.8	%		80.6	%		81.0	%		63.5	%
Weighted-average common shares and units outstanding diluted (3)		198,309,809			198,056,397			197,563,868			197,546,778			191,457,377
Dilutive effect of exchangeable senior notes due 2030 (2)		10,578,132			10,525,410			10,405,224			10,405,224			10,259,496

Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		208,887,941			208,581,807			207,969,092			207,952,002			201,716,873

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(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 36.

(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 June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013, and June 30, 2013 include 1,509,455, 1,510,861, 1,446,316, 1,415,135, and 1,306,211 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)

JUNE 30, 2014

(In thousands)


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
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	$	18,636		$	18,833		$	10,279		$	4,247		$	14,803
Interest expense, net		23,131			28,010			27,837			27,870			26,119
Interest expense - unconsolidated partnerships		240			238			244			251			252
Income tax (benefit)/expense		(701	)		30			(104	)		447			291
Depreciation & amortization - consolidated entities		62,736			62,409			58,781			61,898			63,557
Depreciation & amortization - unconsolidated partnerships		403			373			382			380			367

EBITDA		104,445			109,893			97,419			95,093			105,389
Noncontrolling interests		462			1,934			297			(111	)		234
Non-cash adjustment for securities		50			—			—			—			—
Gain on sale of assets		—			—			—			(230	)		—
Net realized gain on securities (2)		—			(8,003	)		—			—			—
Acquisition-related expenses		1,134			1,250			19			907			2,120
4570 Executive Drive lease termination revenue, net		(374	)		(5,287	)		—			—			—
Elan Corporation lease termination revenue, net		—			—			—			—			(13,547	)

Adjusted EBITDA	$	105,717		$	99,787		$	97,735		$	95,659		$	94,196

(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 36.

(2)	For the three months ended March 31, 2014 only.

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RECONCILIATION OF NET OPERATING INCOME (1)

JUNE 30, 2014

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Net income	$	19,098		$	20,767		$	10,576		$	4,136		$	15,037
Equity in net loss of unconsolidated partnerships		10			138			208			112			267
Interest expense, net		23,131			28,010			27,837			27,870			26,119
Other (income)/expense		(1,027	)		(8,163	)		(1,136	)		687			202

Income from operations		41,212			40,752			37,485			32,805			41,625
Depreciation and amortization		62,736			62,409			58,781			61,898			63,557
General and administrative		12,443			11,942			11,817			11,934			10,396
Acquisition-related expenses		1,134			1,250			19			907			2,120

Consolidated net operating income	$	117,525		$	116,353		$	108,102		$	107,544		$	117,698

Revenues:
Rental	$	120,924		$	120,026		$	118,048		$	116,884		$	108,092
Tenant recoveries		40,280			38,735			37,597			38,907			32,494
Other revenue (2)		9,957			10,115			2,348			3,441			19,053

Total revenues		171,161			168,876			157,993			159,232			159,639
Expenses:
Rental operations		53,636			52,523			49,891			51,688			41,941

Consolidated net operating income	$	117,525		$	116,353		$	108,102		$	107,544		$	117,698

Consolidated net operating income - cash basis (3)	$	105,743		$	103,843		$	103,382		$	100,465		$	98,031

Operating margin (4)		66.7	%		66.9	%		67.9	%		66.8	%		70.2	%
Operating expense recovery (5)		75.1	%		73.7	%		75.4	%		75.3	%		77.5	%

(1)	For a definition and discussion of net operating income, see page 36.

(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

JUNE 30, 2014

(In thousands)


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Mortgage notes payable	$	5,982		$	11,593		$	11,699		$	11,969		$	10,675
Exchangeable senior notes		1,688			1,688			1,688			1,688			1,688
Unsecured senior notes		12,288			10,334			10,334			10,334			10,334
Unsecured senior term loan		1,791			1,995			2,009			1,993			1,988
Unsecured line of credit		2,112			2,076			1,767			1,242			294
Line of credit fees		471			563			576			602			664
Derivative instruments		923			859			867			600			593

Interest expense, net - cash basis	$	25,255		$	29,108		$	28,940		$	28,428		$	26,236

Non-cash interest expense:
Amortization of fair-value of debt acquired		(631	)		(535	)		(509	)		(511	)		(310	)
Amortization of debt discounts		302			230			233			228			225
Amortization of deferred loan costs		1,707			1,509			1,504			1,825			1,374
Amortization of deferred interest costs		1,684			1,691			1,698			1,705			1,711
Amortization of put/call and preferred returns		237			199			178			179			59

Non-cash debt adjustments		3,299			3,094			3,104			3,426			3,059
Capitalized interest		(5,423	)		(4,192	)		(4,207	)		(3,984	)		(3,176	)

Interest expense, net	$	23,131		$	28,010		$	27,837		$	27,870		$	26,119

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COVERAGE RATIOS (1)

JUNE 30, 2014

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/14			3/31/14			12/31/13			9/30/13			6/30/13
Interest coverage ratio
Adjusted EBITDA	$	105,717		$	99,787		$	97,735		$	95,659		$	94,196
Interest expense:
Interest expense, net		23,131			28,010			27,837			27,870			26,119
Interest expense - unconsolidated partnerships		240			238			244			251			252
Amortization of deferred interest costs		(1,684	)		(1,691	)		(1,698	)		(1,705	)		(1,711	)
Amortization of deferred loan costs		(1,707	)		(1,509	)		(1,504	)		(1,825	)		(1,374	)
Amortization of debt discounts		(302	)		(230	)		(233	)		(228	)		(225	)
Amortization of fair-value of debt acquired		631			535			509			511			310

Total interest expense	$	20,309		$	25,353		$	25,155		$	24,874		$	23,371

Interest coverage ratio		5.2			3.9			3.9			3.8			4.0

Fixed charge coverage ratio
Adjusted EBITDA	$	105,717		$	99,787		$	97,735		$	95,659		$	94,196
Fixed charges:
Interest expense, net		23,131			28,010			27,837			27,870			26,119
Interest expense - unconsolidated partnerships		240			238			244			251			252
Amortization of deferred interest costs		(1,684	)		(1,691	)		(1,698	)		(1,705	)		(1,711	)
Amortization of deferred loan costs		(1,707	)		(1,509	)		(1,504	)		(1,825	)		(1,374	)
Amortization of debt discounts		(302	)		(230	)		(233	)		(228	)		(225	)
Amortization of fair-value of debt acquired		631			535			509			511			310
Principal payments		1,977			2,729			2,705			2,616			2,232

Total fixed charges	$	22,286		$	28,082		$	27,860		$	27,490		$	25,603

Fixed charge coverage ratio		4.7			3.6			3.5			3.5			3.7

(1)	For a discussion of coverage ratios, see page 36.

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DEBT SUMMARY

JUNE 30, 2014

(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	%	$	10,559	$	520		$	11,079		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		13,002		637			13,639		07/17
100 College Street		2.40	%		2.40	%		35,885		—			35,885		08/16
4320 Forest Park Avenue		4.00	%		2.70	%		21,000		115			21,115		06/15
300 George Street		6.20	%		4.91	%		45,905		3,865			49,770		07/25
Hershey Center for Applied Research		6.15	%		4.71	%		13,203		1,349			14,552		05/27
500 Kendall Street (Kendall D)		6.38	%		5.45	%		56,755		1,797			58,552		12/18
Shady Grove Road		5.97	%		5.97	%		142,101		—			142,101		09/16
University of Maryland BioPark I		5.93	%		4.69	%		16,416		1,386			17,802		05/25
University of Maryland BioPark II		5.20	%		4.33	%		62,432		3,692			66,124		09/21
University of Maryland BioPark Garage		5.20	%		4.33	%		4,699		278			4,977		09/21
University of Miami Life Science & Technology Park		4.00	%		2.89	%		20,000		438			20,438		02/16

Total / Weighted-Average on Mortgage Notes Payable		5.44	%		4.77	%		441,957		14,077			456,034
Unsecured Fixed Rate Debt:
Unsecured Exchangeable Senior Notes Due 2030 (1)		3.75	%		3.75	%		180,000		—			180,000		01/30
Unsecured Senior Notes Due 2016		3.85	%		3.99	%		400,000		(959	)		399,041		04/16
Unsecured Senior Notes Due 2019		2.63	%		2.72	%		400,000		(2,302	)		397,698		05/19
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(1,673	)		248,327		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(1,820	)		248,180		07/22
Unsecured Variable Rate Debt:
Unsecured Senior Term Loan Due 2017 - U.S. Dollar (2)		1.55	%		2.38	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan Due 2017 - GBP (3)		1.89	%		2.14	%		170,510		—			170,510		03/17
Unsecured Senior Term Loan Due 2018 (4)		1.35	%		1.67	%		350,000		—			350,000		03/18
Unsecured Line of Credit (5)		1.25	%		1.25	%		155,000		—			155,000		03/18

Total / Weighted-Average on Consolidated Debt		3.39	%		3.47	%	$	2,841,063	$	7,323		$	2,848,386

Share of Unconsolidated Partnership Debt:
BioPark Fremont (50%) (fixed)		3.75	%		3.70	%		1,380		6			1,386		05/15
PREI Secured Loan (20%) (variable) (6)		3.16	%		3.16	%		27,795		—			27,795		08/14

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.19	%		3.19	%		29,175		6			29,181

Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		3.39	%		3.46	%	$	2,870,238	$	7,329		$	2,877,567

(1)	In July 2014, at the request of the holders, 2,613,503 shares of common stock were issued in exchange for $44.5 million in aggregate principal of the Exchangeable Senior Notes.

(2)

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 2.56% 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 2.38% at June 30, 2014.

(3)

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 $1.71 to £1.00 at the end of the first quarter. The Company entered into interest rate swap agreements that effectively fix the interest rate on £100 million at 2.14% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings.

(4)	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 1.90% for three years, subject to adjustments based on the Company’s credit ratings.

(5)	Effective rate excludes facility fee of 20 bps on the entire capacity of the unsecured line of credit, which equals approximately $450,000 per quarter.

(6)	Subsequent to quarter end, the maturity date of the secured construction loan was extended to August 13, 2015.

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DEBT MATURITIES

JUNE 30, 2014

(In thousands)

Weighted-average debt maturity is 4.9 years for consolidated debt (excluding extension options).


	2014		2015		2016		2017		2018		Thereafter		Total
Consolidated debt:
Mortgage Notes Payable:
Mortgage notes payable	$	4,245	$	31,784	$	204,293	$	32,306	$	47,804	$	121,525	$	441,957
Unsecured debt:
Unsecured exchangeable senior notes due 2030 (1)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2016		—		—		400,000		—		—		—		400,000
Unsecured senior notes due 2019		—		—		—		—		—		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		—		—		—		170,510		—		—		170,510
Unsecured senior term loan due 2018		—		—		—		—		350,000		—		350,000
Unsecured line of credit		—		—		—		—		155,000		—		155,000

Total unsecured debt		—		—		400,000		414,106		505,000		1,080,000		2,399,106
Total consolidated debt	$	4,245	$	31,784	$	604,293	$	446,412	$	552,804	$	1,201,525	$	2,841,063

Share of unconsolidated partnership debt:
BioPark Fremont (50%) (fixed)		—		1,380		—		—		—		—		1,380
PREI secured loan (20%) (variable) (2)		27,795		—		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	27,795	$	1,380	$	—	$	—	$	—	$	—	$	29,175

Total consolidated and share of unconsolidated partnership debt	$	32,040	$	33,164	$	604,293	$	446,412	$	552,804	$	1,201,525	$	2,870,238

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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. In July 2014, at the request of the holders, 2,613,503 shares of common stock were issued in exchange for $44.5 million in aggregate principal of the Exchangeable Senior Notes.

(2)	Subsequent to quarter end, the maturity date of the secured construction loan was extended to August 13, 2015.

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COMMON STOCK DATA

JUNE 30, 2014

(Shares in thousands)


	Three Months Ended
Summary of Common Shares	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13
Earnings per share
Weighted-average common shares outstanding		191,003			190,906			190,664			190,647			186,735
Weighted-average OP and LTIP units outstanding		5,405			5,410			5,416			5,416			3,367
Dilutive effect of performance units		392			229			38			69			49

Diluted common shares - EPS		196,800			196,545			196,118			196,132			190,151

Funds from operations
Weighted-average common shares outstanding		191,003			190,906			190,664			190,647			186,735
Weighted-average OP and LTIP units outstanding		5,405			5,410			5,416			5,416			3,367
Dilutive effect of performance units		392			229			38			69			49
Dilutive effect of restricted stock		1,509			1,511			1,446			1,415			1,306
Dilutive effect of exchangeable senior notes due 2030		10,579			10,526			10,405			10,405			10,260

Diluted common shares - FFO		208,888			208,582			207,969			207,952			201,717

Closing common shares, OP and LTIP units outstanding		197,931			197,908			197,531			197,523			197,364
High price	$	22.47		$	20.89		$	20.56		$	21.62		$	23.13
Low price	$	19.94		$	17.98		$	17.97		$	17.90		$	18.55
Average closing price	$	21.24		$	19.72		$	18.95		$	19.63		$	21.64
Closing price	$	21.83		$	20.49		$	18.12		$	18.59		$	20.23
Dividends per share - annualized	$	1.00		$	1.00		$	1.00		$	0.94		$	0.94
Closing dividend yield - annualized		4.6	%		4.9	%		5.5	%		5.1	%		4.6	%


Dividends per Share	06/30/14			03/31/14			12/31/13			09/30/13			06/30/13
Common Stock - BMR
Amount	$	0.250		$	0.250		$	0.250		$	0.235		$	0.235
Declared		June 16, 2014			March 17, 2014			December 12, 2013			September 16, 2013			June 14, 2013
Record		June 30, 2014			March 31, 2014			December 31, 2013			September 30, 2013			June 28, 2013
Paid		July 15, 2014			April 15, 2014			January 15, 2014			October 15, 2013			July 15, 2013

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MARKET SUMMARY

JUNE 30, 2014


				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		3,175,494		$	177,750			32.6	%	$	55.98		$	189,096		29.8	%	$	59.55
Maryland		1,895,644			72,902			13.4	%		38.46			88,349		13.9	%		46.61
San Francisco		2,411,729			60,080			11.0	%		24.91			71,381		11.2	%		29.60
San Diego		1,848,317			60,008			11.0	%		32.47			76,771		12.1	%		41.54
New York / New Jersey		1,592,696			56,002			10.3	%		35.16			69,547		11.0	%		43.67
Cambridge, UK		512,425			19,873			3.7	%		38.78			19,873		3.1	%		38.78
Pennsylvania		668,239			17,259			3.2	%		25.83			22,351		3.5	%		33.45
North Carolina		797,781			13,949			2.6	%		17.48			17,800		2.8	%		22.31
Seattle		283,436			11,891			2.2	%		41.95			15,322		2.4	%		54.06
University Related - Other		2,111,179			54,725			10.0	%		25.92			64,339		10.2	%		30.48

Total portfolio / weighted-average		15,296,940		$	544,439			100.0	%	$	35.59		$	634,829		100.0	%	$	41.50


	Percent Leased
Market	Total Operating Portfolio			Development (3)			Redevelopment (3)			Unconsolidated Partnership Portfolio (4)
Boston		98.9	%		—			86.5	%		71.5	%
Maryland		93.7	%		—			—			—
San Francisco		81.2	%		—			—			—
San Diego		92.5	%		—			—			100.0	%
New York / New Jersey		86.8	%		100.0	%		—			—
Cambridge, UK		99.5	%		100.0	%		—			—
Pennsylvania		71.2	%		80.8	%		—			—
North Carolina		92.9	%		—			—			—
Seattle		69.7	%		20.5	%		—			—
University Related - Other		90.6	%		99.1	%		—			—

Total portfolio (5)		89.9	%		83.3	%		86.5	%		77.3	%

Total portfolio weighted-average leased % (6)		92.0	%		81.7	%		86.5	%		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.

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2014


					Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Buildings		Feet		Sq Ft			Feet		6/30/14			3/31/14
	Boston
1	Albany Street	May 31, 2005		2		75,003		0.4	%		75,003		100.0	%		100.0	%
2	320 Bent Street	December 14, 2011		1		195,198		1.2	%		195,137		100.0	%		100.0	%
3	301 Binney Street	December 14, 2011		1		417,290		2.5	%		403,381		96.7	%		96.7	%
4	301 Binney Street Garage	December 14, 2011		1		528 Stalls		n/a			427 Stalls		100.0	%		99.8	%
5	210 Broadway	February 9, 2012		1		64,812		0.4	%		64,812		100.0	%		100.0	%
6	Center for Life Science \| Boston	November 17, 2006		1		704,159		4.2	%		696,331		98.9	%		98.9	%
7	Charles Street	April 7, 2006		1		47,912		0.3	%		47,912		100.0	%		100.0	%
8	320 Charles Street	June 18, 2013		1		99,513		0.6	%		99,513		100.0	%		100.0	%
9	Coolidge Avenue	April 5, 2005		1		37,684		0.2	%		34,580		91.8	%		91.8	%
10	21 Erie Street	May 31, 2005		1		48,627		0.3	%		48,627		100.0	%		100.0	%
11	40 Erie Street	May 31, 2005		1		100,854		0.6	%		100,854		100.0	%		100.0	%
12	47 Erie Street Parking Structure	May 31, 2005		1		447 Stalls		n/a			322 Stalls		72.0	%		71.1	%
13	Fresh Pond Research Park	April 5, 2005		6		90,702		0.5	%		89,176		98.3	%		98.3	%
14	50 Hampshire Street	February 9, 2012		1		183,052		1.1	%		183,052		100.0	%		100.0	%
15	60 Hampshire Street	February 9, 2012		1		41,257		0.2	%		35,703		86.5	%		86.5	%
16	Kendall Crossing Apartments	December 14, 2011		1		37 Apts.		n/a			37 Apts.		100.0	%		91.2	%
17	450 Kendall Street (Kendall G)	May 31, 2011		1		63,000		0.4	%		—		—			—
18	500 Kendall Street (Kendall D)	May 31, 2005		1		349,325		2.1	%		344,097		98.5	%		98.2	%
19	675 W. Kendall Street (Kendall A)	May 31, 2005		1		302,919		1.8	%		302,919		100.0	%		99.7	%
20	Sidney Street	May 31, 2005		1		191,904		1.1	%		191,904		100.0	%		100.0	%
21	Vassar Street	May 31, 2005		1		60,845		0.4	%		60,845		100.0	%		100.0	%

	Total Boston			27		3,074,056		18.3	%		2,973,846		96.7	%		96.7	%

	Maryland
22	Beckley Street	December 17, 2004		1		77,225		0.5	%		77,225		100.0	%		100.0	%
23	9900 Belward Campus Drive	July 18, 2012		1		49,317		0.3	%		41,816		84.8	%		65.3	%
24	9901 Belward Campus Drive	July 18, 2012		1		57,152		0.3	%		57,110		99.9	%		99.9	%
25	9911 Belward Campus Drive	May 24, 2006		1		289,912		1.7	%		289,912		100.0	%		100.0	%
26	9920 Belward Campus Drive	May 8, 2007		1		51,181		0.3	%		51,181		100.0	%		100.0	%
27	9704 Medical Center Drive	May 3, 2010		1		122,600		0.7	%		122,600		100.0	%		100.0	%
28	9708-9714 Medical Center Drive	May 3, 2010		3		92,124		0.5	%		16,067		17.4	%		17.4	%
29	1701 / 1711 Research Boulevard	May 9, 2011		1		104,743		0.6	%		104,743		100.0	%		100.0	%
30	Shady Grove Road	May 24, 2006		4		635,058		3.8	%		635,058		100.0	%		100.0	%
31	Tributary Street	December 17, 2004		1		91,592		0.5	%		91,592		100.0	%		100.0	%
32	University of Maryland BioPark I	May 31, 2013		1		76,542		0.5	%		75,367		98.5	%		100.0	%
33	University of Maryland BioPark II	May 31, 2013		1		235,333		1.4	%		230,568		98.0	%		93.7	%
34	University of Maryland BioPark Garage	May 31, 2013		1		638 Stalls		n/a			638 Stalls		100.0	%		100.0	%
35	50 West Watkins Mill Road	May 7, 2010		1		57,410		0.3	%		20,000		34.8	%		34.8	%
36	55 / 65 West Watkins Mill Road	February 23, 2010		2		82,405		0.5	%		82,405		100.0	%		100.0	%

	Total Maryland			21		2,022,594		11.9	%		1,895,644		93.7	%		92.8	%

	San Francisco
37	Ardentech Court	November 18, 2004		1		55,588		0.3	%		55,588		100.0	%		100.0	%
38	Ardenwood Venture (1)	June 14, 2006		1		72,500		0.4	%		60,339		83.2	%		83.2	%
39	Bayshore Boulevard	August 17, 2004		3		183,344		1.1	%		183,344		100.0	%		100.0	%
40	Bridgeview Technology Park I	September 10, 2004		2		201,567		1.2	%		106,694		52.9	%		52.9	%
41	Bridgeview Technology Park II	March 16, 2005		1		50,400		0.3	%		50,400		100.0	%		57.0	%
42	550 Broadway Street	April 27, 2012		1		71,239		0.4	%		71,239		100.0	%		100.0	%
43	Dumbarton Circle	May 27, 2005		1		44,000		0.3	%		44,000		100.0	%		100.0	%
44	Gateway Business Park	October 26, 2010		4		176,503		1.0	%		145,056		82.2	%		82.2	%
45	Industrial Road	August 17, 2004		1		175,144		1.0	%		175,144		100.0	%		100.0	%

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2014


					Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Buildings		Feet		Sq Ft			Feet		6/30/14			3/31/14
	San Francisco (Continued)
46	Kaiser Drive	August 25, 2005		1		87,953		0.5	%		71,215		81.0	%		81.0	%
47	Pacific Industrial Center	July 11, 2006		1		305,026		1.8	%		262,124		85.9	%		82.7	%
48	Pacific Research Center North	July 11, 2006		6		661,245		3.9	%		523,491		79.2	%		79.2	%
49	Pacific Research Center South	July 11, 2006		3		423,246		2.5	%		263,543		62.3	%		62.3	%
50	Science Center at Oyster Point	October 26, 2010		2		204,887		1.2	%		204,887		100.0	%		100.0	%
51	Woodside Technology Park	February 28, 2013		3		255,650		1.5	%		194,665		76.1	%		100.0	%

	Total San Francisco			31		2,968,292		17.4	%		2,411,729		81.2	%		82.2	%

	San Diego
52	Balboa Avenue	August 13, 2004		1		35,344		0.2	%		35,344		100.0	%		100.0	%
53	Bernardo Center Drive	August 13, 2004		1		61,286		0.4	%		61,286		100.0	%		100.0	%
54	Coast 9	October 15, 2010		9		162,074		1.0	%		137,062		84.6	%		76.6	%
55	4570 Executive Drive	September 17, 2010		1		125,219		0.7	%		125,219		100.0	%		100.0	%
56	Faraday Avenue	September 19, 2005		1		28,704		0.2	%		28,704		100.0	%		100.0	%
57	Gazelle Court	March 30, 2010		1		176,000		1.0	%		176,000		100.0	%		100.0	%
58	3525 John Hopkins Court	December 28, 2010		1		48,306		0.3	%		48,306		100.0	%		100.0	%
59	3545-3575 John Hopkins Court	August 16, 2006		1		72,192		0.4	%		62,973		87.2	%		86.8	%
60	6114-6154 Nancy Ridge Drive	May 2, 2007		3		196,557		1.2	%		196,557		100.0	%		100.0	%
61	6122-6126 Nancy Ridge Drive	April 25, 2012		1		68,000		0.4	%		68,000		100.0	%		100.0	%
62	6828 Nancy Ridge Drive	April 21, 2005		1		42,138		0.3	%		42,138		100.0	%		42.0	%
63	Pacific Center Boulevard	August 24, 2007		2		66,745		0.4	%		66,745		100.0	%		100.0	%
64	Road to the Cure	December 14, 2006		1		67,998		0.4	%		67,998		100.0	%		100.0	%
65	San Diego Science Center	October 21, 2004		1		105,364		0.6	%		84,236		79.9	%		78.8	%
66	10240 Science Center Drive	September 23, 2010		1		49,347		0.3	%		49,347		100.0	%		100.0	%
67	10255 Science Center Drive	September 24, 2004		1		53,740		0.3	%		53,740		100.0	%		100.0	%
68	Sorrento Plaza	December 18, 2010		2		31,184		0.2	%		31,184		100.0	%		100.0	%
69	Sorrento Valley Boulevard	December 7, 2006		1		54,924		0.3	%		—		—			—
70	11388 Sorrento Valley Road	September 10, 2010		1		35,940		0.2	%		35,940		100.0	%		100.0	%
71	Summers Ridge	June 8, 2012		—		—		n/a			—		100.0	%		100.0	%
72	Torreyana Road	March 22, 2007		1		81,204		0.5	%		81,204		100.0	%		100.0	%
73	9865 Towne Centre Drive	August 12, 2004		2		94,866		0.6	%		94,866		100.0	%		100.0	%
74	9885 Towne Centre Drive	August 12, 2004		2		104,870		0.6	%		104,870		100.0	%		100.0	%
75	Waples Street	March 1, 2005		1		50,055		0.3	%		21,952		43.9	%		43.9	%
76	Wateridge Circle	November 1, 2011		3		106,490		0.6	%		101,783		95.6	%		95.6	%

	Total San Diego			40		1,918,547		11.4	%		1,775,454		92.5	%		90.5	%

	New York / New Jersey
77	Ardsley Park	June 23, 2011		5		207,855		1.2	%		185,905		89.4	%		100.0	%
78	Graphics Drive	March 17, 2005		1		72,300		0.4	%		46,386		64.2	%		64.2	%
79	Landmark at Eastview	August 12, 2004		5		800,671		5.0	%		652,304		81.5	%		81.7	%
80	Landmark at Eastview II	August 12, 2004		3		360,520		2.1	%		360,520		100.0	%		100.0	%
81	Landmark at Eastview III	August 12, 2004		2		297,000		1.8	%		297,000		100.0	%		100.0	%
82	One Research Way	May 31, 2006		1		50,581		0.3	%		50,581		100.0	%		—

	Total New York / New Jersey			17		1,788,927		10.8	%		1,592,696		89.0	%		87.3	%

	Cambridge, UK
83	Granta Park	June 12, 2012		11		472,234		2.8	%		470,015		99.5	%		99.5	%
84	430 Cambridge Science Park	May 15, 2014		1		42,410		0.3	%		42,410		100.0	%		—

	Total Cambridge, UK			12		514,644		3.1	%		512,425		99.6	%		99.5	%

	Pennsylvania
85	George Patterson Boulevard	October 28, 2005		1		71,500		0.4	%		71,500		100.0	%		100.0	%

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2014


					Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Buildings		Feet		Sq Ft			Feet		6/30/14			3/31/14
	Pennsylvania (Continued)
86	Hershey Center for Applied Research	May 31, 2013		1		80,867		0.5	%		76,709		94.9	%		87.6	%
87	3711 Market Street (2)	May 31, 2013		1		154,793		0.9	%		147,773		95.5	%		94.5	%
88	3737 Market Street (3)	May 31, 2013		1		334,305		2.0	%		269,962		80.8	%		80.8	%
89	Phoenixville Pike	April 5, 2005		1		104,400		0.6	%		39,111		37.5	%		37.5	%
90	Spring Mill Drive	July 20, 2006		1		76,561		0.5	%		63,184		82.5	%		82.5	%
91	900 Uniqema Boulevard	January 13, 2006		1		11,293		0.1	%		—		—			—
92	1000 Uniqema Boulevard	September 30, 2005		1		59,821		0.4	%		—		—			—

	Total Pennsylvania			8		893,540		5.4	%		668,239		74.8	%		74.0	%

	North Carolina
93	Paramount Parkway	July 20, 2010		1		61,603		0.4	%		61,603		100.0	%		100.0	%
94	Patriot Drive	December 17, 2010		1		48,394		0.3	%		48,394		100.0	%		83.8	%
95	Piedmont Triad Research - Wake 90	May 31, 2013		1		475,742		2.8	%		415,195		87.3	%		87.4	%
96	Wake Forest Biotech Place	May 31, 2013		1		242,000		1.4	%		242,000		100.0	%		100.0	%
97	Weston Parkway	December 17, 2010		1		30,589		0.2	%		30,589		100.0	%		100.0	%

	Total North Carolina			5		858,328		5.1	%		797,781		92.9	%		92.1	%

	Seattle
98	Elliott Avenue	August 24, 2004		1		151,194		0.9	%		84,657		56.0	%		56.0	%
99	500 Fairview Avenue	January 28, 2008		1		121,569		0.7	%		24,866		20.5	%		—
100	530 Fairview Avenue	January 12, 2006		1		101,118		0.6	%		101,118		100.0	%		100.0	%
101	Monte Villa Parkway	August 17, 2004		1		51,000		0.3	%		30,167		59.2	%		59.2	%
102	217th Place	November 21, 2006		1		67,799		0.4	%		42,628		62.9	%		62.9	%

	Total Seattle			5		492,680		2.9	%		283,436		57.5	%		69.3	%

	University Related - Other
103	BRDG Park at Danforth Plant Science Center	May 31, 2013		1		109,731		0.7	%		93,311		85.0	%		83.1	%
104	100 College Street (4)	April 4, 2014		1		510,419		3.0	%		505,683		99.1	%		—
105	4320 Forest Park Avenue	May 31, 2013		1		152,403		0.9	%		152,403		100.0	%		100.0	%
106	300 George Street (4)	April 4, 2014		1		518,940		3.1	%		512,349		98.7	%		—
107	Heritage @ 4240	May 31, 2013		1		185,207		1.1	%		164,925		89.0	%		64.6	%
108	Innovation Research Park at ODU I	May 31, 2013		1		95,634		0.6	%		86,102		90.0	%		91.8	%
109	Innovation Research Park at ODU II	May 31, 2013		1		95,634		0.6	%		72,463		75.8	%		75.0	%
110	Trade Centre Avenue	August 9, 2006		2		78,023		0.5	%		78,023		100.0	%		100.0	%
111	University of Miami Life Science & Technology Park	May 31, 2013		1		258,681		1.5	%		167,936		64.9	%		65.3	%
112	University Tech Park at IIT	May 31, 2013		1		128,000		0.8	%		128,000		100.0	%		100.0	%
113	Walnut Street	July 7, 2006		4		149,984		0.9	%		149,984		100.0	%		100.0	%

	Total University Related - Other			15		2,282,656		13.7	%		2,111,179		92.5	%		83.6	%

	Total			181		16,814,264		100.0	%		15,022,429		89.3	%		88.7	%

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

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

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

(4)	The Company owns 93% of the limited liability company that owns the 100 College and 300 George properties.

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DEVELOPMENT, REDEVELOPMENT AND DEVELOPMENT POTENTIAL

JUNE 30, 2014

(Dollars in thousands)


Property	Market	Rentable Square Feet		Percent Pre-Leased			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
Development:
100 College Street	University Related - Other		510,419		99.1	%	$	75,500	$	191,000		Q1 2016
Landmark at Eastview III	New York / New Jersey		297,000		100.0	%		52,200		162,700		Q4 2015
3737 Market Street	Pennsylvania		334,305		80.8	%		71,600		100,000		Q3 2014
500 Fairview Avenue	Seattle		121,569		20.5	%		3,800		73,000		Q1 2016
450 Kendall Street (Kendall G)	Boston		63,000		—			20,400		44,100		Q2 2015
430 Cambridge Science Park	United Kingdom		42,410		100.0	%		3,900		24,400		Q3 2015

Total / weighted-average			1,368,703		83.3	%	$	227,400	$	595,200
Redevelopment:
60 Hampshire Street	Boston		41,257		86.5	%		7,000		15,900		Q4 2014

Total / weighted-average			41,257		86.5	%	$	7,000	$	15,900

Total							$	234,400	$	611,100


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 Francisco		550,000		1,444,000		1,994,000
San Diego		275,000		—		275,000
New York / New Jersey		—		619,000		619,000
Cambridge, UK		—		138,000		138,000
Pennsylvania		—		2,818,000		2,818,000
North Carolina		274,000		—		274,000
Seattle		—		40,000		40,000
University Related - Other		—		300,000		300,000

Total		1,099,000		6,383,000		7,482,000

(1)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but excludes any amounts accrued, and payroll, interest, ground rent. or operating expenses capitalized, through June 30, 2014.

(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. Upon completion, management expects the property to enter the Same Property Portfolio one year subsequent to the in-service date.

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CAPITAL EXPENDITURES

JUNE 30, 2014

(Dollars in thousands)


Capital Expenditures:	Three Months Ended
	6/30/14		3/31/14		12/31/13		9/30/13		6/30/13

Development / Pre-Development (1)	$	50,678	$	44,846	$	63,650	$	42,184	$	(7,695	)
Redevelopment		3,349		1,185		2,219		752		494
Tenant improvements - first generation (2)		8,614		9,175		8,257		5,572		6,446
Recurring capital expenditures and second generation tenant improvements (2) (3)		21,553		7,731		8,028		9,857		12,599
Other capital		3,095		6,906		5,254		8,532		12,144

Total capital expenditures	$	87,289	$	69,843	$	87,408	$	66,897	$	23,988


Capitalized Interest:	Investment		Three Months Ended
	to Date (4)		6/30/14			3/31/14			12/31/13			9/30/13			6/30/13

Development	$	227,400	$	1,777		$	981		$	695		$	1,367		$	522
Redevelopment		7,000		64			64			330			294			297
Other Capital Improvements (5)		303,900		2,638			2,048			2,165			947			948
Pre-Development		97,600		944			1,099			1,017			1,376			1,409

Total capitalized interest	$	635,900	$	5,423		$	4,192		$	4,207		$	3,984		$	3,176

Average interest rate capitalized				3.94	%		4.64	%		4.75	%		4.88	%		5.24	%

(1)	Projects include funds from tax credit dollars received during the quarter. Negative amounts reflect an excess in tax credit benefits received over expenditures incurred during the quarter.

(2)	For definitions of first and second generation leases, see page 37.

(3)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. For a definition of recurring capital expenditures, see page 37.

(4)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but for Development and Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through June 30, 2014.

(5)	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 June 30, 2014.

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PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS

JUNE 30, 2014

(Dollars in thousands)


				Rentable		Leased
				Square		Square		Percent Leased
Property	Acquisition Date	Buildings		Feet		Feet		6/30/14			3/31/14			Market
McKellar Court
McKellar Court	September 30, 2004		1		72,863		72,863		100.0	%		100.0	%	San Diego
PREI
650 E. Kendall Street (Kendall B)	April 4, 2007		1		282,217		201,648		71.5	%		71.5	%	Boston
350 E. Kendall Street Garage (Kendall F)	April 4, 2007		1		1,409 Stalls		1,136 Stalls		100.0	%		100.0	%	Boston


Total assets	$	284,400
Total debt (1)		152,015
Current annualized base rent		13,114
BioMed’s net investment in unconsolidated partnerships	$	32,440
BioMed’s pro rata share of debt		29,175
BioMed ownership percentage		20	%

(1)	McKellar Court’s debt is payable to BioMed Realty, L.P. and is included in investments in unconsolidated partnerships on the Company’s consolidated balance sheet.

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LEASE EXPIRATIONS

JUNE 30, 2014

The weighted-average remaining lease term is 8.3 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		13,570		0.1	%	$	373		0.1	%	$	27.49	$	373		0.1	%	$	27.49
Third quarter 2014		209,067		1.4	%		10,076		1.9	%		48.20		10,076		1.6	%		48.20
Fourth quarter 2014		162,505		1.1	%		7,211		1.3	%		44.37		7,211		1.1	%		44.37

2014		371,572		2.5	%	$	17,287		3.2	%	$	46.52	$	17,287		2.7	%	$	46.52
2015		601,195		3.9	%		15,775		2.9	%		26.24		16,097		2.5	%		26.78
2016		1,151,476		7.5	%		45,430		8.3	%		39.45		47,266		7.4	%		41.05
2017		767,297		5.0	%		22,357		4.1	%		29.14		24,129		3.8	%		31.45
2018		1,820,696		11.9	%		81,390		14.9	%		44.70		84,265		13.3	%		46.28
2019		1,012,125		6.6	%		27,895		5.1	%		27.56		30,873		4.9	%		30.50
2020		925,547		6.1	%		32,436		6.0	%		35.05		36,733		5.8	%		39.69
2021		642,876		4.2	%		19,876		3.7	%		30.92		22,610		3.6	%		35.17
2022		479,414		3.1	%		13,143		2.4	%		27.41		17,008		2.7	%		35.48
2023		1,379,629		9.0	%		57,487		10.6	%		41.67		64,318		10.1	%		46.62
Thereafter		6,131,543		40.1	%		210,990		38.7	%		34.41		273,870		43.1	%		44.67

Total / weighted-average		15,296,940		100.0	%	$	544,439		100.0	%	$	35.59	$	634,829		100.0	%	$	41.50

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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

JUNE 30, 2014


	Leased Square Feet
Expiration	Boston		Maryland		San Francisco		San Diego		New York/ New Jersey		Cambridge, UK		Pennsylvania		North Carolina		Seattle		University/ Other		Total
Month-to-month		—		774		—		1,486		630		—		1,399		—		—		9,281		13,570
2014		179,196		55,588		75,784		24,948		—		—		22,449		—		—		13,607		371,572
2015		54,648		30,624		116,005		182,490		8,433		24,441		39,379		16,492		—		128,683		601,195
2016		416,184		13,048		273,632		29,906		40,613		1,103		1,631		92,192		36,885		246,282		1,151,476
2017		113,908		107,288		160,313		144,322		145,581		—		25,103		7,853		11,390		51,539		767,297
2018		1,144,843		72,004		171,584		320,607		24,944		—		14,389		15,117		42,628		14,580		1,820,696
2019		31,363		289,929		161,104		113,946		—		117,919		91,167		8,932		—		197,765		1,012,125
2020		359,387		130,846		71,215		113,251		28,899		136,434		33,029		19,261		—		33,225		925,547
2021		67,968		45,434		230,311		8,365		40,914		160,290		76,092		10,060		—		3,442		642,876
2022		42,385		4,399		330,849		17,707		27,524		—		6,146		—		—		50,404		479,414
2023		563,964		—		525,667		219,636		—		26,294		—		—		—		44,068		1,379,629
Thereafter		201,648		1,145,710		295,265		671,653		1,275,158		45,944		357,455		627,874		192,533		1,318,303		6,131,543

Total		3,175,494		1,895,644		2,411,729		1,848,317		1,592,696		512,425		668,239		797,781		283,436		2,111,179		15,296,940

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10 LARGEST TENANTS

JUNE 30, 2014

BioMed’s properties were leased to 355 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		6.0	%	$	46,281	$	50.04		8.5	%		June 2026
2	Regeneron Pharmaceuticals, Inc. (3)		1,003,366		6.6	%		40,818		40.68		7.5	%		Multiple
3	Vertex Pharmaceuticals Incorporated (4)		685,286		4.5	%		37,027		54.03		6.8	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		2.4	%		26,823		74.02		4.9	%		July 2023
5	Sanofi (5)		418,003		2.7	%		22,858		54.68		4.2	%		Multiple
6	Ironwood Pharmaceuticals, Inc.		303,259		2.0	%		15,350		50.62		2.8	%		February 2018
7	Children’s Hospital Corporation (6)		200,081		1.3	%		14,610		73.02		2.7	%		May 2023
8	Alexion Pharmaceuticals, Inc. (7)		413,545		2.7	%		10,428		25.22		1.9	%		Multiple
9	MedImmune, Inc. (8)		245,808		1.6	%		8,931		36.33		1.6	%		Multiple
10	Illumina, Inc.		193,136		1.3	%		8,096		41.92		1.5	%		October 2023

	Total / weighted-average (9)		4,749,818		31.1	%	$	231,222	$	48.68		42.4	%

(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 will expire in July 2015, 7,568 square feet in January 2017, 314,173 square feet in July 2024 and 678,792 square feet in 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)	3,134 square feet expire January 2018 and 410,411 square feet expire January 2025.

(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

JUNE 30, 2014

(Dollars in thousands)


	Three Months Ended
	6/30/14			6/30/13			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		12,745,621			12,745,621
Percent of total portfolio		74.2	%		78.4	%
Percent leased		89.1	%		87.2	%
Revenues:
Rental	$	104,457		$	102,786			1.6	%
Tenant recoveries		37,050			32,414			14.3	%

Total revenues		141,507			135,200			4.7	%
Expenses:
Rental operations		43,545			39,189			11.1	%

Same property net operating income (2)	$	97,962		$	96,011			2.0	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(185	)		(4,363	)		(95.8	%)

Same property net operating income - cash basis (2) (3) (4)	$	97,777		$	91,648			6.7	%

Rental revenue - cash basis (3)	$	103,427		$	97,357			6.2	%

(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 36. 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)

Excludes the King of Prussia property, which was removed from the same property portfolio and placed into development potential during Q2 2014. Including the King of Prussia property in the same property portfolio, cash basis net operating income would have increased 3.2% over the same period in 2013.

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FUTURE LEASE COMMENCEMENTS

JUNE 30, 2014


	Operating & Redevelopment				Development				Total
Expected Commencement Quarter (1)	GAAP (2)		Cash (3)		GAAP (2)		Cash (3)		GAAP (2)		Cash (3)
	(In thousands)
3Q14	$	9,041	$	6,846	$	5,823	$	4,625	$	14,864	$	11,471
4Q14		5,477		5,040		869		—		6,346		5,040
1Q15		8,264		4,550		1,643		1,286		9,907		5,836
2Q15		—		1,862		1,626		—		1,626		1,862
3Q15		2,916		7,978		—		574		2,916		8,552
4Q15		208		1,132		27,487		24,586		27,695		25,718
2016		375		1,404		1,858		3,593		2,233		4,997

	$	26,281	$	28,812	$	39,306	$	34,664	$	65,587	$	63,476

(1)	Current estimates of future lease commencement timing. Actual results may vary from current estimates. Excludes unconsolidated joint ventures.

(2)	The annualized GAAP monthly rent (GABR).

(3)	The annualized first monthly cash rent payment due (CABR).

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ACQUISITIONS

JUNE 30, 2014


Acquisitions Detail for 2014:	Market	Closing Date	Rentable Square Feet		Investment		Percent Leased at Acquisition

Property
					(In thousands)
First Quarter 2014
None

Second Quarter 2014
100 College (1)	University Related - Other	April 4, 2014		510,419	$	191,000		99.1	%
300 George (2)	University Related - Other	April 4, 2014		518,940		117,000		98.7	%
430 Cambridge Science Center (3)	Cambridge, UK	May 15, 2014		42,410		24,400		100.0	%

Second quarter total (4)				1,071,769	$	332,400		98.9	%

Total 2014 Acquisitions				1,071,769	$	332,400		98.9	%

(1)	Investment includes a minority interest of $5.0 million, an assumed construction loan of $21.7 million and approximately $102.3 million in estimated completion costs.

(2)	Investment includes a minority interest of $5.0 million and an assumed mortgage note payable of $46.3 million.

(3)	Investment includes £11.95 million to be paid upon completion of the building in Q3 2015.

(4)	Excludes approximately 2.3 million square feet of estimated potential development resulting from a 99-year ground lease entered into with Drexel University for approximately $18.2 million during the quarter.

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LEASING ACTIVITY (1)

JUNE 30, 2014


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft		GAAP Annualized Base Rent per Leased Sq Ft		Forward-Leased Square Feet			Current Annualized Base Rent per Forward- Leased Sq Ft		GAAP Annualized Base Rent per Forward- Leased Sq Ft
Leased Square Feet as of March 31, 2014		14,416,305							220,205
Acquisitions		1,060,442		$	23.04	$	23.24
Expirations		(811,921	)		21.01		20.45
Terminations		(167,249	)		43.04		39.78
Forward-lease delivery		117,378			32.65		35.72		(117,378	)	$	32.65	$	35.72
Renewals and extensions		319,067			15.26		15.73
New leases - 1st generation (2)		193,532			20.21		21.16
New leases - 2nd generation (2)		114,302			26.12		29.17		130,234			28.59		31.23
New leases - pre-leased		55,084			31.27		34.91

Leased Square Feet as of June 30, 2014		15,296,940							233,061


	Three Months Ended
Leased Square Feet	6/30/14			3/31/14		12/31/13		9/30/13		6/30/13
Renewals and extensions		319,067			173,117		89,297		110,563		475,250
New leases		493,152			307,332		352,541		229,535		422,770

Gross Leasing Activity		812,219			480,449		441,838		340,098		898,020

Net Absorption (3)		(234,891	)		96,103		186,657		111,265		(45,377	)

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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)	Net absorption is calculated as total square footage of new leases (excluding pre-leased), renewals, and forward-lease deliveries, less expirations and terminated square feet for the given period.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS AND TENANT CONCESSIONS

JUNE 30, 2014


	Three Months Ended
	6/30/14		3/31/14		12/31/13		9/30/13		6/30/13
Renewals and Extensions (1)
Number of renewals		16		10		7		13		12
Square feet		319,067		173,117		89,297		110,563		475,250
Tenant improvement costs per square foot (2)	$	1.05	$	19.11	$	5.27	$	—	$	1.42
Leasing commission costs per square foot (2)		2.17		3.80		3.99		0.65		4.28
Tenant concession costs per square foot (2) (3)		0.37		—		0.97		1.21		0.03

Total tenant improvement, leasing commission, and tenant concession costs psf	$	3.59	$	22.91	$	10.23	$	1.86	$	5.73

New Leases - 1st Generation (4)
Number of leases		16		13		11		16		5
Square feet		193,532		133,811		63,231		199,909		86,717
Tenant improvement costs per square foot (2)	$	56.63	$	60.47	$	34.00	$	105.63	$	49.52
Leasing commission costs per square foot (2)		5.27		12.45		6.97		9.81		9.61
Tenant concession costs per square foot (2) (3)		7.49		5.24		0.77		19.96		19.11

Total tenant improvement, leasing commission, and tenant concession costs psf	$	69.39	$	78.16	$	41.74	$	135.40	$	78.24

New Leases - 2nd Generation (4)
Number of leases		28		36		16		8		2
Square feet		244,536		173,521		289,310		29,626		39,053
Tenant improvement costs per square foot (2)	$	37.34	$	103.64	$	34.60	$	0.71	$	27.05
Leasing commission costs per square foot (2)		9.59		5.88		9.33		0.72		8.12
Tenant concession costs per square foot (2) (3)		5.84		12.63		4.20		1.62		—

Total tenant improvement, leasing commission, and tenant concession costs psf	$	52.77	$	122.15	$	48.13	$	3.05	$	35.17

New Leases - Pre-Leased
Number of leases		3		—		—		—		1
Square feet		55,084		—		—		—		297,000
Tenant improvement costs per square foot (2)	$	67.75	$	—	$	—	$	—	$	100.00
Leasing commission costs per square foot (2)		18.29		—		—		—		11.00
Tenant concession costs per square foot (2) (3)		9.99		—		—		—		14.29

Total tenant improvement, leasing commission, and tenant concession costs psf	$	96.03	$	—	$	—	$	—	$	125.29

Total
Number of renewals/leases		63		59		34		37		20
Square feet		812,219		480,449		441,838		340,098		898,020
Tenant improvement costs per square foot (2)	$	29.74	$	61.16	$	28.59	$	62.15	$	39.78
Leasing commission costs per square foot (2)		6.24		6.96		7.92		6.04		7.19
Tenant concession costs per square foot (2) (3)		4.37		6.02		3.06		12.26		8.18

Total tenant improvement, leasing commission, and tenant concession costs psf	$	40.35	$	74.14	$	39.57	$	80.45	$	55.15

(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 forward-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

JUNE 30, 2014

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) non-cash adjustments for securities, (c) gains or losses from sales of real estate and (d) acquisition-related expenses, and by subtracting from EBITDA (x) lease termination fees related to 4570 Executive Drive, (y) net realized gains on investments in securities for the three months ended March 31, 2014, and (z) termination fees from Elan Corporation at our 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

JUNE 30, 2014

Property Status

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.

Pre-Leased

Leases on space that, prior to the execution, was classified as Pre-Development or Development Potential and is expected to enter the Company’s operating portfolio at a future date.

Forward-Leased

Leases on space which is currently occupied and which are expected to commence upon vacancy of the existing tenants.

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.

Bond Covenants

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, unsecured senior notes due 2019, 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, June 28, 2012, and April 23, 2014, respectively. The covenants for the unsecured senior notes due 2020, unsecured senior notes due 2016, unsecured senior notes due 2019, 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, unsecured senior notes due 2019, and unsecured senior notes due 2022 excludes such investments in unconsolidated partnerships.

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