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BioMed Realty Trust Reports Second Quarter 2005 Financial Results

SAN DIEGO, Aug. 11 /PRNewswire-FirstCall/ -- BioMed Realty Trust, Inc. (NYSE: BMR), a real estate investment trust focused on acquiring, developing, owning, leasing and managing laboratory and office space for the life science industry, today announced financial results for the quarter ended June 30, 2005.

Highlights

* On May 31, the company completed the acquisition of a portfolio of eight properties, including one parking structure, located in Cambridge, Massachusetts and one property in Lebanon, New Hampshire. The portfolio totaled approximately 1.1 million rentable square feet of life science and office space that was 96.6% leased at acquisition.
* Concurrently with the acquisition of the Cambridge portfolio, the company entered into three credit facilities with KeyBank National Association under which it initially borrowed an aggregate of $485.0 million of the $600.0 million available under the facilities.
* On June 27, the company completed the sale of 15,122,500 shares of its common stock at $22.50 per share, resulting in gross proceeds of approximately $340.3 million.
* Total revenues increased to $28.6 million in the second quarter from $24.5 million in the first quarter of 2005, while total expenses increased to $20.4 million in the second quarter from $16.9 million in the first quarter of 2005.
* Net income decreased to $1.4 million in the second quarter from $5.8 million in the first quarter of 2005. Net income per share decreased to $0.05 per diluted share from $0.19 per diluted share. Results for the second quarter included approximately $2.0 million of loan fee amortization expense resulting from the repayment of indebtedness. Results for the first quarter included $3.0 million of lease termination fee revenue associated with the company's Industrial Road property.
* Funds from operations (FFO) per share were $0.29 per diluted share in the second quarter versus $0.37 per diluted share in the first quarter of 2005. Excluding the effect of deferred loan fee amortization expense of $0.06 per diluted share in the second quarter and lease termination fee revenue of $0.09 per diluted share in the first quarter, FFO per share increased to $0.35 per diluted share in the second quarter from $0.28 per diluted share in the first quarter.
* The company signed six leases representing approximately 115,000 square feet in the second quarter, highlighted by approximately 80,000 square feet at its King of Prussia property leased to Centocor, Inc., a subsidiary of Johnson & Johnson.
* During the second quarter, the company also completed the acquisition of five additional properties:
* Fresh Pond Research Park -- 90,702 square feet in Cambridge, Massachusetts
* Coolidge Avenue -- 37,400 square feet near Cambridge in Watertown, Massachusetts
* Phoenixville Pike -- 104,400 square feet in Malvern, Pennsylvania
* Nancy Ridge Drive -- 42,138 square feet in San Diego, California
* Dumbarton Circle -- 44,000 square feet in Fremont, California
* On June 3, the company declared a $0.27 per share dividend, representing an annualized dividend of $1.08 per share.

"The second quarter marked a number of significant milestones for BioMed Realty. The company's total assets more than doubled to $1.3 billion at the end of the second quarter from $601.6 million at the end of the first quarter, and its rentable square footage increased to 4.3 million. In addition, BioMed has established itself as a leading owner of life science space in the important Cambridge market. This tremendous growth illustrates BioMed's commitment to our corporate mission of providing real estate to the life science industry, and further highlights BioMed Realty's premiere life science real estate-oriented management team," said Alan Gold, president and chief executive officer of BioMed Realty Trust.

Management does not believe that historical financial results are indicative of the company's expected future operating performance, because year-to-year financial comparisons with the predecessor company are not meaningful given the predecessor's limited operations.

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 to FFO is included at the end of this release.

Financing Activity

At the end of the second quarter, the company's consolidated debt consisted of fixed-rate, mortgage indebtedness with an aggregate outstanding principal amount of $233.9 million (excluding $15.9 million of debt premium) and a weighted-average interest rate of 6.43% and a $250.0 million secured term loan, for which the company entered into an interest rate swap agreement to fix the interest rate at 6.4% until the loan matures on May 30, 2010. There were no outstanding borrowings under the company's $250.0 million unsecured revolving credit facility at quarter end.

During the second quarter, in order to finance the Cambridge portfolio acquisition and provide additional working capital, the company entered into three credit facilities with KeyBank under which it initially borrowed an aggregate of $485.0 million. The credit facilities include a three-year, unsecured revolving credit facility of $250.0 million, under which the company initially borrowed $135.0 million, a three-year, unsecured term loan facility of $100.0 million and a five-year, secured term loan facility of $250.0 million. The new $250.0 million unsecured revolving credit facility, which contains an accordion option up to $400.0 million, replaced BioMed's previously existing $100.0 million unsecured revolving credit facility.

The company also completed the sale of 15,122,500 shares of its common stock at $22.50 per share, resulting in gross proceeds of approximately $340.3 million. The proceeds were used to repay outstanding borrowings under the company's unsecured revolving credit facility and the $100.0 million unsecured term loan with KeyBank. The company expects to use the remaining proceeds for future property acquisitions and for other general corporate and working capital purposes.

Portfolio Update

At the end of the second quarter, BioMed Realty Trust owned 33 properties, located in Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania, New York and New Jersey, consisting of 56 buildings with 4.3 million rentable square feet of laboratory and office space that was 92.3% leased as of June 30, 2005. Of the remaining unleased space, 183,838 square feet, or 4.3% of our total rentable square footage, was under redevelopment. We also own undeveloped land that we estimate can support up to 600,000 rentable square feet of laboratory and office space.

Per Share Earnings Guidance

The company's guidance for the year ending December 31, 2005 for earnings per share (diluted) and FFO per share (diluted) is set forth and reconciled below.



                                                           2005
                                                        (Low - High)
     Projected net income per share (diluted)          $0.36 - 0.40
     Add:
       Minority interest                                   $0.04
       Real estate depreciation and amortization           $0.98
     Projected FFO per share (diluted)                 $1.38 - 1.42


The foregoing estimates are forward-looking and reflect management's view of current and future market conditions, including certain assumptions with respect to rental rates, occupancy levels, interest rates, and the amount and timing of acquisitions. 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 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) today 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 www.biomedrealty.com and www.earnings.com, or live by calling (800) 510-0219 (domestic) or (617) 614-3451 (international) with call ID number 10804293. The call will be archived for two weeks on both web sites. A telephone playback of the conference call will also be available from 1:00 p.m. Pacific Time on Thursday, August 11, 2005 through midnight Pacific Time on Tuesday, August 16, 2005 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international) and using access code: 48778300.

About BioMed Realty Trust

BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused on acquiring, developing, owning, leasing and managing laboratory and office space for the life science industry. Our tenants include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. The company's current properties and primary acquisition targets are 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. Additional information is available at 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 Boston or California regions; 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 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. 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.




                            BIOMED REALTY TRUST, INC.
                           CONSOLIDATED BALANCE SHEETS
                      (In thousands, except per share data)
                                   (Unaudited)

                                                    June 30,     December 31,
                                                       2005           2004
                           ASSETS
     Rental property, net                         $1,028,406       $468,488
     Property under development                        5,337             --
     Investment in unconsolidated partnership          2,490          2,470
     Cash and cash equivalents                       113,014         27,869
     Restricted cash                                   4,592          2,470
     Accounts receivable, net                          5,690          1,837
     Accrued straight-line rents, net                  5,620          3,306
     Acquired above market leases, net                 7,813          8,006
     Deferred leasing costs, net                     143,609         61,503
     Deferred loan costs, net                          5,530          1,700
     Prepaid expenses                                  2,627          1,531
     Other assets                                      2,417          2,543
        Total assets                              $1,327,145       $581,723

            LIABILITIES AND STOCKHOLDERS' EQUITY
     Mortgage notes payable, net                    $249,818       $102,236
     Secured term loan                               250,000             --
     Security deposits                                 5,976          4,831
     Due to affiliates                                    --             53
     Dividends and distributions payable               9,265          9,249
     Accounts payable and accrued expenses            22,324          7,529
     Acquired lease obligations, net                  31,988         13,741
        Total liabilities                            569,371        137,639

     Minority interests                               21,775         22,267
     Stockholders' equity:
       Common stock                                      465            314
       Additional paid-in capital                    759,228        434,075
       Deferred compensation                          (3,838)        (4,182)
       Accumulated other comprehensive income         (1,765)            --
       Dividends in excess of earnings               (18,091)        (8,390)
        Total stockholders' equity                   735,999        421,817
        Total liabilities and stockholders'
         equity                                   $1,327,145       $581,723



                          BIOMED REALTY TRUST, INC. AND
                  INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
                        CONSOLIDATED STATEMENTS OF INCOME
                      (In thousands, except per share data)
                                   (Unaudited)

                                     Inhale 201                   Inhale 201
                        BioMed       Industrial       BioMed      Industrial
                        Realty       Road, L.P.       Realty       Road, L.P.
                      Trust, Inc.   (Predecessor)   Trust, Inc.  (Predecessor)
                     Three Months   Three Months    Six Months    Six Months
                         Ended         Ended          Ended         Ended
                        June 30,      June 30,       June 30,      June 30,
                          2005          2004           2005          2004
     Revenues:
      Rental            $20,014         $1,575       $34,228        $3,137
      Tenant
       recoveries         8,549            149        15,803           299
      Other income           --             --         3,003            --
        Total revenues   28,563          1,724        53,034         3,436
     Expenses:
      Rental operations   6,721             66        13,116           131
      Real estate taxes   2,476             88         4,264           176
      Depreciation
       and amortization   8,476            236        14,667           478
      General and
       administrative     2,695             --         5,245            --
        Total expenses   20,368            390        37,292           785
        Income from
         operations       8,195          1,334        15,742         2,651
      Equity in net
       income of
       unconsolidated
       partnership           20             --            71            --
      Interest income       102             --           180             1
      Interest expense   (6,812)          (703)       (8,223)       (1,389)
        Income before
         minority
         interests        1,505            631         7,770         1,263
      Minority interests    (65)            --          (494)            --
        Net income       $1,440           $631        $7,276        $1,263

     Basic earnings
      per share           $0.05                        $0.23
     Diluted earnings
      per share           $0.05                        $0.23

     Weighted-average
      common shares
      outstanding:
     Basic           31,861,536                   31,514,608
     Diluted         34,893,367                   34,544,121



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

                                                Three Months     Six Months
                                                   Ended            Ended
                                               June 30, 2005   June 30, 2005
     Net income                                     $1,440         $7,276
     Adjustments:
       Minority interests of
        exchangeable operating
        partnership units                              131            669
       Depreciation and amortization
        -- real estate assets                        8,496         14,677
     Funds from operations (FFO)                    10,067         22,622
     FFO per share -- diluted                        $0.29          $0.65
     Weighted-average common shares
      outstanding -- diluted                    34,893,367     34,544,121


     We present funds from operations, or FFO, 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.
08/11/2005

CONTACT: John F. Wilson, II, Chief Financial Officer of BioMed Realty Trust, Inc., +1-858-485-9840

Web site: http://www.biomedrealty.com
(BMR)
08/11/2005 05:00 EDT http://www.prnewswire.com