Investor FAQ’s

1.	What is a REIT?
2.	What makes a REIT attractive to investors?
3.	How does a company qualify as a REIT?
4.	What is FFO?
5.	Why does BioMed Realty use FFO as a performance measure?
6.	How can I get additional information about REITs?
7.	What is BioMed Realty's primary business?
8.	In what geographic markets does BioMed Realty concentrate?
9.	What characteristics distinguish the life science real estate market?
10.	What distinguishes BioMed Realty?
11.	On which exchange is BioMed Realty traded?
12.	When did BioMed Realty go public?
13.	When does BioMed Realty’s fiscal year end?
14.	How frequently does BioMed Realty pay a dividend?
15.	Who can I contact about my stockholder account?
16.	How can I receive a copy of the latest company information?
17.	Can I receive e-mail alerts from BioMed Realty?
18.	How does BioMed Realty's Dividend Reinvestment and Stock Purchase Plan Work?

What is a REIT?

A REIT (Real Estate Investment Trust) is a corporation that owns income-producing real estate assets and, under provisions of the Internal Revenue Code, must distribute at least 90% of its REIT taxable income to its stockholders. In return, the REIT typically generally pays no federal income tax on its REIT taxable income that it distributes, preventing double taxation of stockholders. Double taxation generally means taxation that occurs once at the corporate level when income is earned and once again at the stockholder level when the income is distributed. Unlike a partnership, however, a REIT cannot pass tax losses onto its stockholders.

What makes a REIT attractive to investors?

Accessibility: REITs allow everyday investors to invest in income-producing real estate without large capital requirements. In fact, no minimum investment is required to invest in a REIT.
Liquidity: shares of publicly traded REITs are readily convertible to currency because they are traded on public exchanges just like other stocks.
Total return: REITs typically provide both competitive dividend yields, as well as the potential for long-term capital appreciation.
Professional management: REIT managers are skilled, experienced real estate professionals.
Portfolio diversification: real estate can help minimize risk by providing added diversification to an investment portfolio.
Portfolio monitoring: a REIT's performance is monitored on a regular basis by independent auditors, as well as the financial media. This scrutiny provides the investor a measure of protection and more than one barometer of the REIT's financial condition.

How does a company qualify as a REIT?

To qualify as a REIT, a company must comply with certain provisions of the Internal Revenue Code. A REIT must, among other things:

Be an entity that would be taxable as a domestic corporation but for the special Internal Revenue Code provisions applicable to REITs;
Be managed by a Board of Directors or Board of Trustees;
Have shares that are fully transferable;
Have a minimum of 100 stockholders;
Have no more than 50% of the value of its shares held by five or fewer individuals, including certain specified entities, during the last half of each taxable year;
Derive at least 75% of its gross income (subject to certain exceptions) for each taxable year from investments relating to real property, including rents from real property, mortgages, and certain types of temporary investment income;
Derive at least 95% its gross income for each taxable year (subject to certain exceptions) from income that qualifies under the 75% income test and other dividends, interest and gain from the sale or other disposition of stock or securities;
Have 75% of the value of its total assets comprised of real estate assets, cash, cash items and government securities;
Have not more than 25% of the value of its total assets comprised of securities other than those securities includable in the 75% asset test;
Of the investments included in the 25% asset class and except for certain other investments, own no more than 10% of the total vote or value of the outstanding securities of any one issuer;
Have no more than 25% of its assets consist of stocks in taxable REIT subsidiaries; and
Pay dividends of at least 90% of its taxable income in the form of stockholder dividends. For distributions with respect to the taxable years ending on or before December 31, 2009, recent Internal Revenue Service guidance allows a REIT to satisfy up to 90% of this requirement through the distribution of common shares of the REIT, if certain conditions are met.

4.	What is FFO?
	FFO is a supplemental non-GAAP financial measure used in the real estate industry to measure and compare the operating performance of real estate companies.

Why does BioMed Realty use FFO as a performance measure?

We use funds from operations, or FFO, available to common shares and partnership and LTIP units because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, in its March 1995 White Paper (as amended in November 1999 and April 2002). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. Our computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does 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 should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

6.	How can I get additional information about REITs?
	For additional information about REITs, please visit our industry trade association's website at www.reit.com.

7.	What is BioMed Realty's primary business?
	BioMed Realty is a real estate investment trust focused on acquiring, developing, owning, leasing and managing laboratory and office space for the life science industry. Life science companies are non-traditional tenants with specific, capital-intensive space requirements. The level of infrastructure required of life science companies is seldom found in traditional office buildings.

8.	In what geographic markets does BioMed Realty concentrate?
	Our current properties and primary acquisition targets are generally located in markets with well-established reputations as centers for scientific research, including Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey. However, we also give consideration to smaller mini-clusters and University research parks outside of these primary markets.

What characteristics distinguish the life science real estate market?

The life science industry is generally viewed as an underserved market with high barriers to entry and exit, and above-average risk-adjusted yields. Life science properties often require at least three times as much capital investment as traditional office buildings, including the need for systems redundancy, 100% outside-air HVAC systems and extensive electrical capacity. This requires an expert understanding of not only life science real estate, but also the structure of the industry as a whole.

10.

What distinguishes BioMed Realty?

We don’t try to be all things to all people. We provide real estate solutions to the life science industry. That is our only business. Our CEO, Alan Gold, is a pioneer in the field of life science real estate. He has assembled a talented management team with extensive broker and industry relationships. The knowledge and experience we bring to the life science industry provides us with a distinct competitive advantage, driving shareholder value.

11.	On which exchange is BioMed Realty traded?
	BioMed Realty’s common stock trades on the New York Stock Exchange under the symbol “BMR.”

12.	When did BioMed Realty go public?
	BioMed Realty completed its initial public offering on August 11, 2004, at a price of $15.00 per share. The initial offering of 31 million shares raised approximately $465 million in gross proceeds.

13.	When does BioMed Realty’s fiscal year end?
	Our fiscal year ends every year on December 31st.

14.	How frequently does BioMed Realty pay a dividend?
	Our Board of Directors has historically authorized the payment of quarterly dividends on our common stock.

15.	Who can I contact about my stockholder account?
	For shareholder inquiries, including change of name, address or telephone number, canceling or issuing stock certificates, and resolving problems related to lost, destroyed, or stolen certificates, please contact our Plan Administrator: Computershare 250 Royall Street Canton, MA 02021 (877) 296-3711

16.	How can I receive a copy of the latest company information?
	To download our latest annual and quarterly supplemental reports, click on Financial Reports. To download a 10-Q, 10-K or other SEC filings, click on SEC Filings. If you additional information, or if you simply have additional questions, click on Information Request.

17.	Can I receive e-mail alerts from BioMed Realty?
	Absolutely. To sign up for e-mail alerts on company events, documents, press releases and closing stock price information, visit E-mail Alerts.

18.

How does BioMed Realty's Dividend Reinvestment and Stock Purchase Plan Work?

BioMed Realty's Dividend Reinvestment and Stock Purchase Plan (the DRIP) is designed to provide participants with a convenient and economical method to reinvest all or a portion of their dividends and purchase shares of our common stock. The DRIP is available to both existing shareholders and individual investors wishing to make an initial investment. If you are interested in investing through the DRIP or finding out more details, please read the prospectus.

This is neither an offer to sell, nor a solicitation of an offer to buy, any security. Such offer may only be made by means of a prospectus. Please read the prospectus carefully before making any investment. Information contained on our website is not incorporated by reference into the prospectus.

Highlights of the DRIP

Existing stockholders may purchase additional shares of our common stock by automatically reinvesting all or any part of the cash dividends paid on their shares of common stock.
Existing stockholders may purchase additional shares of our common stock by making optional cash purchases of between $100 and $10,000 in any calendar month.
New investors may make an initial cash purchase of shares of our common stock of between $100 and $10,000.
We will bear the administrative expenses of the DRIP, meaning that new investors and existing stockholders can purchase shares of our common stock without incurring any brokerage fees, commissions or charges.
The purchase price for newly issued shares of our common stock purchased directly from us will be the market price less a discount ranging from 0% to 5% (initially set at 0%), which may be adjusted by us in our discretion at any time. Holders of shares in broker or nominee names may participate in the DRIP by instructing their brokers or nominees to reinvest dividends and make optional cash purchases on their behalf.
You may also make automatic monthly investments of $100 to $10,000 by authorizing electronic funds to be transferred from your banking or checking accounts.

After reading the prospectus, existing stockholders and other investors may begin participating in the DRIP online (click here to access your account if you are an existing stockholder and click here to enroll if you are a new investor) or by requesting an enrollment package and returning the completed enrollment form to the Plan Administrator in the self-addressed envelope enclosed. Computershare Trust Company, N.A. is our Plan Administrator and administers the DRIP. Shareowner Services acts as service agent to Computershare Trust Company, N.A. under the plan.

You may also request a prospectus and enrollment form directly from Computershare Shareowner Services LLC using the contact information below:

Computershare
250 Royall Street
Canton, MA 02021
(877) 296-3711

Website: www-us.computershare.com/Investor/

If you hold shares of our common stock through a broker, bank or other nominee, you should contact them to request a copy of the prospectus and to request that a DRIP enrollment form be completed on your behalf.

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