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BioMed Realty Trust Reports Fourth Quarter and Year-End 2007 Financial Results
SAN DIEGO, Feb 28, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- BioMed Realty Trust, Inc. (NYSE: BMR), a real estate investment trust focused on providing real estate to the life science industry, today announced financial results for the fourth quarter and year ended December 31, 2007.
    2007 Highlights

    -- Funds from operations (FFO) increased 9.8% to $1.91 per diluted share
       versus the prior year

    -- Annual revenues increased 21.7% to $266.1 million versus the prior year

    -- Executed 53 leasing transactions representing approximately
       1,500,000 square feet:

       o 13 leases amended to extend their terms, totaling approximately
         839,000 square feet

       o 40 new leases totaling approximately 661,000 square feet

    -- Acquired, either directly or through our joint venture with Prudential
       Real Estate Investors, 14 properties for an aggregate of
       $653.8 million, excluding closing costs

    -- Completed the formation of a joint venture with Prudential Real Estate
       Investors, which subsequently acquired a portfolio of stabilized and
       development properties totaling approximately 470,000 rentable square
       feet

    -- Completed an offering of 9,200,000 shares of 7.375% Series A Cumulative
       Redeemable Preferred Stock for $25.00 per share, raising $222.4 million
       in net proceeds

    -- Amended our $250 million secured term loan, extending the term to
       August 2012 and lowering the borrowing rate by 60 basis points, and
       amended our unsecured revolving line of credit, increasing available
       borrowings to $600 million, lowering the borrowing rate, extending the
       term to August 2011 and increasing the potential borrowing capacity to
       $1.0 billion

    -- Continued to enhance the breadth and depth of our organization,
       including through the appointment of Karen Sztraicher as Vice
       President, Finance and Treasurer and Greg Lubushkin as Vice President -
       Chief Accounting Officer, along with the addition of Richard Gilchrist
       to our board of directors on December 12, 2007


    Fourth Quarter 2007 Highlights

    -- FFO for the quarter was $31.6 million, or $0.46 per diluted share

    -- Executed 18 leasing transactions representing approximately
       681,000 square feet:

       o Four leases amended to extend their terms, totaling approximately
         392,000 square feet -- including an amendment to extend our lease
         with Centocor, Inc. (a subsidiary of Johnson & Johnson) for
         six years at our King of Prussia property

       o 14 new leases totaling approximately 289,000 square feet --
         including a 102,000 square foot lease at the Pacific Research Center

    -- Increased the occupancy rate of the operating portfolio to 93.8%

    -- Disposed of the third of three non-core assets previously held for sale
       and owned through the Prudential Real Estate Investors joint venture

    -- Appointed Richard Gilchrist, President of the Investment Properties
       Group for The Irvine Company, to our board of directors


"We are extremely pleased with our strong performance throughout 2007 both operationally and financially. Leasing activity has been brisk in each of our core markets, as evidenced by the tremendous leasing transaction volume in the fourth quarter of 2007 and the high occupancy rate of our operating portfolio at year-end. We continue to make great progress on our development and redevelopment projects, which we expect to be strong contributors to our operating and financial performance in years to come," said Alan Gold, President and Chief Executive Officer of BioMed Realty Trust.

"Furthermore, our conservative capital structure, strengthened by the amendments to our credit facilities, has allowed us to remain well-capitalized and well-positioned to not only fund our existing projects, but also to continue to selectively pursue acquisitions of world-class, well-located life science properties," added Mr. Gold.

Fourth Quarter and Full-Year 2007 Financial Results

Total revenues for the quarter increased to $64.1 million from $63.0 million in the fourth quarter of 2006, due primarily to the addition of properties through acquisitions, partially offset by a reduction in revenues from properties generating revenues in 2006 which are currently undergoing redevelopment. Net income available to common stockholders for the quarter was $13.2 million, or $0.20 per diluted share, compared to $12.6 million, or $0.19 per diluted share, in the fourth quarter of 2006. FFO during the quarter was $31.6 million, or $0.46 per diluted share, compared to $32.1 million, or $0.47 per diluted share, in the fourth quarter of 2006.

For the full year 2007, total revenues increased 21.7% to $266.1 million from $218.7 million in 2006. Net income available to common stockholders for 2007 increased 59.1% to $55.7 million, compared to $35.0 million in 2006. Net income available to common stockholders per diluted share increased 37.1% to $0.85 for 2007 from $0.62 in 2006. FFO increased 27.1% to $130.3 million for 2007 from $102.5 million in 2006. FFO per diluted share increased 9.8% to $1.91 for 2007 compared to $1.74 in 2006.

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. A complete reconciliation containing adjustments from GAAP net income available to common stockholders to FFO and a definition of FFO are included at the end of this release.

Financing Activity

On January 18, 2007, the company completed the issuance of 9,200,000 shares of its 7.375% Series A cumulative redeemable preferred stock at $25.00 per share, resulting in net proceeds of $222.4 million.

On August 1, 2007, the company amended its $250 million secured term loan facility, extending the term to August 1, 2012, reducing the borrowing rate by 60 basis points and providing greater flexibility with respect to covenants. In addition, on August 1, 2007, the company amended its unsecured revolving line of credit, extending the term to August 1, 2011, increasing the available borrowings under the facility to $600 million, reducing the borrowing rate and providing greater flexibility with respect to covenants. BioMed may extend the maturity date of the revolving credit facility to August 1, 2012 and may increase the amount of the facility to $1.0 billion upon satisfying certain conditions.

During the third quarter of 2007, the company also entered into four new interest rate swaps that have the effect of fixing the LIBOR portions of interest rates on $535 million of its variable rate debt. Two of the interest rate swaps with an aggregate notional amount of $150 million fix LIBOR at 4.68% through August 2011. The remaining two interest rate swaps with an aggregate notional amount of $385 million fix LIBOR at 4.82% through September 2008.

As of December 31, 2007, the company's consolidated debt included fixed-rate mortgage indebtedness with an aggregate outstanding principal amount of $368.8 million, excluding $10.9 million of debt premium, and a weighted-average effective interest rate of 5.5% at year-end; the $250 million secured term loan, with a weighted-average effective interest rate of 7.3% at year-end; $175 million aggregate principal amount of 4.50% exchangeable senior notes due 2026; $270.9 million in outstanding borrowings under the company's $600 million unsecured revolving line of credit, with a weighted-average effective interest rate of 6.3% at year-end; and $425.2 million in outstanding borrowings under the company's acquisition and construction loan secured by the Center for Life Science | Boston property, with a weighted-average effective interest rate of 6.1% at year-end. The company's debt to total capitalization ratio was 45.1% at December 31, 2007.

Portfolio Update

During 2007, the company executed 53 leasing transactions representing approximately 1,500,000 square feet, including 40 new leases totaling approximately 661,000 square feet and 13 leases amended to extend their terms, totaling approximately 839,000 square feet. During 2007, including through its joint venture with Prudential Real Estate Investors, the company acquired 14 properties, consisting of 1.0 million rentable square feet of laboratory and office space, as well as an estimated 700,000 rentable square feet under construction and undeveloped land, for an aggregate purchase price of approximately $653.8 million, excluding closing costs. Also during 2007, the company, including through its joint venture with Prudential Real Estate Investors, disposed of four non-core properties representing 378,000 rentable square feet and one undeveloped land parcel, for approximately $60.6 million, excluding closing costs.

During the quarter ended December 31 2007, the company executed 18 leasing transactions representing approximately 681,000 square feet, including 14 new leases totaling approximately 289,000 square feet and four leases amended to extend their terms, totaling approximately 392,000 square feet.

As of December 31, 2007, BioMed Realty Trust owned or had interests in 103 buildings, located predominantly in the major U.S. life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey. The company's portfolio was comprised of the following, with its operating portfolio 93.8% leased to 112 tenants, as of December 31, 2007:


                                                              Rentable
                                                            Square Feet
    Operating portfolio                                      6,626,723
    Repositioning and redevelopment properties               1,828,546

    Construction in progress                                 1,941,000
    Land parcels                                             1,293,000
      Total proforma portfolio                              11,689,269


    Quarterly Distributions

BioMed Realty Trust's board of directors previously declared a fourth quarter 2007 dividend of $0.31 per share of common stock, and a dividend of $0.46094 per share of the company's 7.375% Series A Cumulative Redeemable Preferred Stock for the period from October 16, 2007 through January 15, 2008. For the full year 2007, the company declared dividends totaling $1.24 per common share and $1.83352 per Series A preferred share.

Supplemental Information

Supplemental operating and financial data are available in the Investor Relations section of the company's web site at http://www.biomedrealty.com.

Teleconference and Web Cast

BioMed Realty Trust will conduct a conference call and audio web cast at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) Friday, February 29, 2008 to discuss the company's financial results and operations for the year. The call will be open to all interested investors either through a live audio web cast at the Investor Relations section of the company's web site at http://www.biomedrealty.com and http://www.earnings.com, or live by calling (800) 706-7748 (domestic) or (617) 614-3473 (international) with call ID number 26368280. The call will be archived for 30 days on both web sites. A telephone playback of the conference call will also be available from 3:00 p.m. Pacific Time on Friday, February 29, 2008 through midnight Pacific Time on Wednesday, March 5, 2008 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international) and using access code 93044857.

About BioMed Realty Trust

BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused on Providing Real Estate to the Life Science Industry(R). The company's tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty Trust owns or has interests in 68 properties, representing 104 buildings with approximately 8.5 million rentable square feet, as well as approximately 1.9 million square feet of development in progress. These properties are located predominantly in the major U.S. life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey, which have well-established reputations as centers for scientific research. Additional information is available at http://www.biomedrealty.com.

This press release 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 and the use of debt to fund acquisitions and developments; failure to manage effectively the company's growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; 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.

                          (Financial Tables Follow)



                          BIOMED REALTY TRUST, INC.
                         CONSOLIDATED BALANCE SHEETS
                                (In thousands)
                                 (Unaudited)

                                                          December 31,
                                                      2007            2006
                          ASSETS
    Investments in real estate, net               $2,805,983      $2,457,538
    Investment in unconsolidated partnerships         22,588           2,436
    Cash and cash equivalents                         13,479          25,664
    Restricted cash                                    8,867           6,426
    Accounts receivable, net                           4,457           5,985
    Accrued straight-line rents, net                  36,415          20,446
    Acquired above market leases, net                  5,745           7,551
    Deferred leasing costs, net                      116,491         129,322
    Deferred loan costs, net                          15,567          17,608
    Other assets                                      27,676          19,666
      Total assets                                $3,057,268      $2,692,642

           LIABILITIES AND STOCKHOLDERS' EQUITY
    Mortgage notes payable, net                     $379,680        $403,836
    Secured construction loan                        425,160         286,355
    Secured term loan                                250,000         250,000
    Exchangeable senior notes                        175,000         175,000
    Unsecured line of credit                         270,947         228,165
    Security deposits                                  7,090           7,704
    Dividends and distributions payable               25,596          19,847
    Accounts payable, accrued expenses and
     other liabilities                                95,871          62,602
    Acquired below market leases, net                 23,708          25,101
      Total liabilities                            1,653,052       1,458,610
    Minority interests                                17,280          19,319
    Stockholders' equity:
    Preferred stock                                  222,413              --
    Common stock                                         656             654
    Additional paid-in capital                     1,277,770       1,272,243
    Accumulated other comprehensive (loss)/income    (21,762)          8,417
    Dividends in excess of earnings                  (92,141)        (66,601)
      Total stockholders' equity                   1,386,936       1,214,713
      Total liabilities and stockholders' equity  $3,057,268      $2,692,642



                          BIOMED REALTY TRUST, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
                (Dollars in thousands, except per share data)
                                 (Unaudited)

                                                   Quarter Ended December 31,
                                                     2007              2006
    Revenues:
      Rental                                       $49,645           $48,680
      Tenant recoveries                             14,471            14,290
      Other (loss)/income                              (66)                8
        Total revenues                              64,050            62,978
    Expenses:
      Rental operations                             12,006            10,594
      Real estate taxes                              3,816             5,968
      Depreciation and amortization                 17,645            18,778
      General and administrative                     5,880             4,923
        Total expenses                              39,347            40,263
        Income from operations                      24,703            22,715
      Equity in net (loss)/income of
       unconsolidated partnerships                    (199)               21
      Interest income                                  181               288
      Interest expense                              (6,641)          (10,288)
        Income from continuing operations
         before minority interests                  18,044            12,736
      Minority interests in continuing operations
       of consolidated partnerships                     17                22
      Minority interests in continuing
       operations of operating partnership            (591)             (539)
        Income from continuing operations           17,470            12,219
      Income from discontinued operations before
       gain on sale of assets and minority interests    --               386
      Minority interests attributable to
       discontinued operations                          --               (16)
        Income from discontinued operations             --               370
        Net income                                  17,470            12,589
      Preferred stock dividends                     (4,241)               --
        Net income available to common
         stockholders                              $13,229           $12,589
    Income from continuing operations
     per share available to common stockholders:
      Basic earnings per share                       $0.20             $0.19
      Diluted earnings per share                     $0.20             $0.19
    Net income per share available to
     common stockholders:
      Basic earnings per share                       $0.20             $0.19
      Diluted earnings per share                     $0.20             $0.19
    Weighted-average common shares outstanding:
      Basic                                     65,308,702        65,151,884
      Diluted                                   68,307,355        68,218,566



                          BIOMED REALTY TRUST, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
                (Dollars in thousands, except per share data)
                                 (Unaudited)

                                                   Year Ended December 31,
                                                   2007               2006
    Revenues:
      Rental                                     $195,996           $164,487
      Tenant recoveries                            61,735             54,160
      Other income                                  8,378                 88
        Total revenues                            266,109            218,735
    Expenses:
      Rental operations                            50,789             40,623
      Real estate taxes                            20,353             20,376
      Depreciation and amortization                72,202             65,063
      General and administrative                   21,870             18,085
        Total expenses                            165,214            144,147
        Income from operations                    100,895             74,588
      Equity in net (loss)/income of
       unconsolidated partnerships                   (893)                83
      Interest income                                 990              1,102
      Interest expense                            (27,654)           (40,672)
        Income from continuing operations
         before minority interests                 73,338             35,101
      Minority interests in continuing operations
       of consolidated partnerships                   (45)               137
      Minority interests in continuing
       operations of operating partnership         (2,412)            (1,670)
        Income from continuing operations          70,881             33,568
      Income from discontinued operations
       before gain on sale of assets
       and minority interests                         639              1,542
      Gain on sale of real estate assets            1,087                 --
      Minority interests attributable to
       discontinued operations                        (74)               (77)
        Income from discontinued operations         1,652              1,465
        Net income                                 72,533             35,033
      Preferred stock dividends                   (16,868)                --
        Net income available to common
         stockholders                             $55,665            $35,033
    Income from continuing operations
     per share available to common stockholders:
      Basic earnings per share                      $0.83              $0.60
      Diluted earnings per share                    $0.83              $0.60
    Net income per share available to
     common stockholders:
      Basic earnings per share                      $0.85              $0.63
      Diluted earnings per share                    $0.85              $0.62
    Weighted-average common shares outstanding:
      Basic                                    65,302,794         55,928,595
      Diluted                                  68,269,985         59,018,004



                          BIOMED REALTY TRUST, INC.
                            FUNDS FROM OPERATIONS
                (Dollars in thousands, except per share data)
                                 (Unaudited)

                                                   Quarter Ended December 31,
                                                      2007             2006
    Net income available to common stockholders     $13,229          $12,589
    Adjustments:
      Minority interests in operating partnership       591              555
      Depreciation and amortization --
       unconsolidated partnerships                      394               20
      Depreciation and amortization --
       consolidated entities-discontinued operations     --              137
      Depreciation and amortization --
       consolidated entities-continuing operations   17,645           18,778
      Depreciation and amortization --
       allocable to minority interest of
       consolidated joint ventures                     (285)              --
    Funds from operations available to common
     shares and partnership and LTIP units         $ 31,574          $32,079
    Funds from operations per share --
     diluted                                          $0.46            $0.47
    Weighted-average common shares
     outstanding -- diluted                      68,307,355       68,218,566


                                                     Year Ended December 31,
                                                      2007             2006
    Net income available to common stockholders     $55,665          $35,033
    Adjustments:
      Minority interests in operating partnership     2,486            1,747
      Gain on sale of real estate assets             (1,087)              --
      Depreciation and amortization --
       unconsolidated partnerships                    1,139               80
      Depreciation and amortization --
       consolidated entities-discontinued operations    228              550
      Depreciation and amortization --
       consolidated entities-continuing operations   72,202           65,060
      Depreciation and amortization --
       allocable to minority interest of
       consolidated joint ventures                     (285)              --
    Funds from operations available to
     common shares and partnership and LTIP units  $130,348         $102,470
    Funds from operations per share -- diluted        $1.91            $1.74
    Weighted-average common shares
     outstanding -- diluted                      68,269,985       59,018,004



We present 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.

SOURCE BioMed Realty Trust, Inc.

http://www.biomedrealty.com/