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BioMed Realty Trust Reports Second Quarter 2008 Financial Results

SAN DIEGO, July 30 /PRNewswire-FirstCall/ -- 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 second quarter ended June 30, 2008.

Highlights:

-- Funds from operations (FFO) for the quarter were $34.5 million, or $0.47 per diluted share

-- Executed 14 leasing transactions during the quarter representing gross leasing volume of approximately 327,000 square feet, up from 127,000 square feet of gross leasing volume in the prior quarter:

o Nine new leases totaling approximately 224,000 square feet -- including a 10-year, 144,000 square foot lease with DayStar Technologies, Inc. at the Pacific Research Center

o Five leases amended to extend their terms totaling approximately 103,000 square feet


-- Achieved substantial completion of core and shell construction at three of our development properties:

o Two of the three buildings under construction at our Landmark at Eastview campus in New York, representing 230,000 square feet and leased to Regeneron Pharmaceuticals, Inc.

o 94,000 square foot laboratory and office facility at our 530 Fairview Avenue property in Seattle

o 84,000 square foot laboratory and office facility at our Towne Centre Drive campus in San Diego ahead of schedule, with Illumina, Inc. taking partial occupancy in July 2008


-- Initiated deliveries of space to four tenants, Beth Israel Deaconess Medical Center, Inc., Children's Hospital Corporation, Dana Farber Cancer Institute, Inc., and the Immune Disease Institute, Inc., at the Center for Life Science | Boston

-- Completed the sale of 6,129,000 shares of common stock at $25.50 per share, resulting in net proceeds of approximately $149.7 million

-- Purchased the minority interest in the entity that owns our Waples property in San Diego, increasing our ownership interest to 100% of the property

-- Added John Bonanno to our development team as Vice President, Development, who brings more than 18 years of experience in commercial real estate and life science business to the company

"We continue to execute well in all aspects of our business, generating yet another quarter of strong financial results. Despite a very turbulent macro-economic environment, the demand for life science real estate remains relatively strong, and we are pleased with our sustained progress on the leasing front," commented Alan D. Gold, President and Chief Executive Officer of BioMed Realty Trust.

"In addition, as evidenced by the achievement of construction milestones at our Center for Life Science | Boston, Towne Centre Drive, Landmark at Eastview and 530 Fairview Avenue properties, we are making excellent progress across all of our development projects and expect these properties to constitute significant drivers of our future growth and continued solid financial performance."

Second Quarter 2008 Financial Results

Rental revenues for the quarter were $54.2 million, representing a 9.6% increase versus the second quarter of 2007. Same property net operating income increased 6.1% on a cash basis for the second quarter of 2008 compared to the second quarter of 2007.

Total revenues for the quarter were $70.8 million, compared to $68.4 million in the second quarter of 2007. Net income available to common stockholders for the quarter was $14.1 million, or $0.20 per diluted share, compared to $14.2 million, or $0.22 per diluted share, in the second quarter of 2007. Net income available to common stockholders for the second quarter of 2007 included $1.3 million, or $0.02 per diluted share, in income from discontinued operations and $2.9 million, or $0.04 per diluted share, in lease termination fees.

FFO during the quarter was $34.5 million, compared to $33.8 million in the comparable period in 2007. FFO per diluted share was $0.47 for the second quarter of 2008 versus $0.50 in the second quarter of 2007. FFO for the second quarter of 2007 included $2.9 million, or $0.04 per diluted share, in lease termination fees.

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 April 22, 2008, the company completed the sale of 6,129,000 shares of common stock at $25.50 per share, resulting in net proceeds of approximately $149.7 million. The net proceeds were utilized to repay a portion of the outstanding indebtedness on the company's unsecured line of credit and for general corporate and working capital purposes.

As of June 30, 2008, the company's consolidated debt included fixed-rate mortgage indebtedness with an aggregate outstanding principal amount of $373.6 million, including $9.8 million of debt premium, and a weighted-average effective interest rate of 5.5% at quarter-end; the company's $250 million secured term loan, with a weighted-average effective interest rate of 4.1% at quarter-end; $175 million aggregate principal amount of 4.50% exchangeable senior notes due 2026; $213.2 million in outstanding borrowings under the company's $600 million unsecured revolving line of credit, with a weighted-average effective interest rate of 3.7% at quarter-end; and $484.0 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 3.7% at quarter-end. The company's debt to total capitalization ratio was 42.0% at June 30, 2008.

"We continue to maintain an appropriately conservative capital structure, and further enhanced our strong liquidity position with our April 2008 common stock offering. Owing to our consistently prudent approach to addressing our capital needs, we are uniquely well-positioned, with capacity to fully fund the completion of our current development projects and to selectively pursue additional attractive investment opportunities," commented Kent Griffin, Chief Financial Officer of BioMed Realty Trust.

Portfolio Update

During the quarter, the company acquired the minority interest in the entity that owns the Waples property for approximately $1.8 million; as a result, the company owns 100% of the property.

As of June 30, 2008, BioMed Realty Trust owned or had interests in 112 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 93.2% leased to 114 tenants, as of June 30, 2008:



                                                     Rentable
                                                    Square Feet
    Operating portfolio                              6,672,086
    Repositioning and redevelopment properties       1,816,642
    Construction in progress                         1,941,000
      Total portfolio                               10,429,728

    Land parcels                                     1,367,000
      Total proforma portfolio                      11,796,728



    Quarterly Distributions

BioMed Realty Trust's board of directors previously declared a second quarter 2008 dividend of $0.335 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 April 16, 2008 through July 15, 2008.

Earnings Guidance

The company has revised 2008 guidance for net income per diluted share and FFO per diluted share as set forth and reconciled below.



                                                                      2008
                                                                  (Low - High)
    Projected net income per diluted share available to
     common stockholders                                         $0.73 - 0.79
          Add:
        Minority interest in operating partnership                   $0.04
        Real estate depreciation and amortization                    $1.08
        Projected FFO per diluted share                          $1.85 - 1.91


The foregoing estimates are forward-looking and reflect management's view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, interest rates, and the amount and timing of development and redevelopment activities. The company's actual results may differ materially from these estimates.

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) Thursday, July 31, 2008 to discuss the company's financial results and operations for the quarter. 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) 322-5044 (domestic) or (617) 614-4927 (international) with call ID number 49338544. The call will be archived for 30 days on both web sites. A telephone playback of the conference call will also be available from 2:00 p.m. Pacific Time on Thursday, July 31, 2008 through midnight Pacific Time on Monday, August 4, 2008 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international) and using access code 59286256.

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 69 properties, representing 112 buildings with approximately 10.4 million rentable square feet, including approximately 1.9 million square feet of development in progress. The company also owns undeveloped land parcels adjacent to existing properties that it estimates can support up to 1.4 million rentable square feet. The company's 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)

                                                       June 30,   December 31,
                                                         2008        2007
                                                     (Unaudited)
                        ASSETS
    Investments in real estate, net                  $2,885,704   $2,805,983
    Investments in unconsolidated partnerships           21,158       22,588
    Cash and cash equivalents                            21,357       13,479
    Restricted cash                                       7,991        8,867
    Accounts receivable, net                              3,377        4,457
    Accrued straight-line rents, net                     46,997       36,415
    Acquired above-market leases, net                     5,017        5,745
    Deferred leasing costs, net                         109,380      116,491
    Deferred loan costs, net                             13,230       15,567
    Other assets                                         68,323       27,676
        Total assets                                 $3,182,534   $3,057,268

              LIABILITIES AND STOCKHOLDERS' EQUITY
    Mortgage notes payable, net                        $373,571     $379,680
    Secured construction loan                           483,997      425,160
    Secured term loan                                   250,000      250,000
    Exchangeable senior notes                           175,000      175,000
    Unsecured line of credit                            213,210      270,947
    Security deposits                                     7,611        7,090
    Dividends and distributions payable                  29,441       25,596
    Accounts payable, accrued expenses, and other
     liabilities                                         96,626       95,871
    Acquired below-market leases, net                    20,702       23,708
      Total liabilities                               1,650,158    1,653,052
    Minority interests                                   15,572       17,280
    Stockholders' equity:
      Preferred stock                                   222,413      222,413
      Common stock                                          717          656
    Additional paid-in capital                        1,430,942    1,277,770
    Accumulated other comprehensive loss                (25,778)     (21,762)
    Dividends in excess of earnings                    (111,490)     (92,141)
      Total stockholders' equity                      1,516,804    1,386,936
        Total liabilities and stockholders' equity   $3,182,534   $3,057,268



                          BIOMED REALTY TRUST, INC.
                      CONSOLIDATED STATEMENTS OF INCOME
               (In thousands, except share and per share data)

                                    For the Three Months   For the Six Months
                                        Ended June 30,       Ended June 30,
                                      2008        2007      2008        2007
                                         (Unaudited)          (Unaudited)
    Revenues:
      Rental                         $54,223    $49,460   $104,565    $96,969
      Tenant recoveries               15,804     15,670     32,386     32,180
      Other income                       744      3,299      1,178      8,078
        Total revenues                70,771     68,429    138,129    137,227
    Expenses:
      Rental operations               13,454     12,880     27,318     25,995
      Real estate taxes                4,915      5,543     10,185     11,459
      Depreciation and amortization   19,331     19,637     37,018     36,891
      General and administrative       5,645      5,364     11,839     10,707
        Total expenses                43,345     43,424     86,360     85,052
        Income from operations        27,426     25,005     51,769     52,175
      Equity in net income/(loss) of
       unconsolidated partnerships        43       (454)      (130)      (432)
      Interest income                    106        339        261        570
      Interest expense                (8,629)    (7,117)   (15,566)   (13,969)
          Income from continuing
           operations before
           minority interests         18,946     17,773     36,334     38,344
      Minority interests in
       continuing operations of
       consolidated partnerships          (1)      (113)         7       (113)
      Minority interests in continuing
       operations of operating
       partnership                      (619)      (577)    (1,209)    (1,276)
          Income from continuing
           operations                 18,326     17,083     35,132     36,955
      Income from discontinued
       operations before gain on sale
       of assets and minority
       interests                           -        252          -        639
      Gain on sale of real estate
       assets                              -      1,088          -      1,088
      Minority interests attributable
       to discontinued operations          -        (57)         -        (74)
          Income from discontinued
           operations                      -      1,283          -      1,653
          Net income                  18,326     18,366     35,132     38,608
      Preferred stock dividends       (4,241)    (4,194)    (8,481)    (8,387)
          Net income available to
           common stockholders       $14,085    $14,172    $26,651    $30,221
    Income from continuing
     operations per share available
     to common stockholders:
      Basic and diluted earnings per
       share                           $0.20      $0.20      $0.39      $0.44

    Net income per share available to
     common stockholders:
      Basic and diluted earnings per
       share                           $0.20      $0.22      $0.39      $0.46

    Weighted-average common shares
     outstanding:
      Basic                       70,094,003 65,298,747 67,722,258 65,294,411
      Diluted                     73,248,311 68,269,656 70,827,426 68,258,562



                          BIOMED REALTY TRUST, INC.
                            FUNDS FROM OPERATIONS
               (In thousands, except share and per share data)

    The following table provides the calculation of our FFO and a
reconciliation to net income available to common stockholders (in thousands,
except per share amounts):


                                     Three Months Ended     Six Months Ended
                                           June 30,             June 30,
                                       2008       2007       2008      2007
                                         (Unaudited)           (Unaudited)
    Net income available to
     common stockholders             $14,085    $14,172    $26,651    $30,221
    Adjustments:
      Minority interests in operating
       partnership                       619        634      1,209      1,350
      Gain on sale of real estate
       assets                              -     (1,088)         -     (1,088)
      Depreciation and
       amortization - unconsolidated
       partnerships                      450        358        901        378
      Depreciation and
       amortization - consolidated
       entities-discontinued
       operations                          -         91          -        228
      Depreciation and
       amortization - consolidated
       entities-continuing operations 19,331     19,637     37,018     36,891
      Depreciation and
       amortization - allocable to
       minority interest of
       consolidated joint ventures        (8)         -        (16)         -
    Funds from operations available
     to common shares and partnership
     and LTIP units                  $34,477    $33,804    $65,763    $67,980
    Funds from operations per
     share - diluted                   $0.47      $0.50      $0.93      $1.00
    Weighted-average common shares
     outstanding - diluted        73,248,311 68,269,656 70,827,426 68,258,562


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.

CONTACT: Kent Griffin, Chief Financial Officer of BioMed Realty Trust, Inc., +1-858-485-9840

Web site: http://www.biomedrealty.com