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BioMed Realty Trust Reports First Quarter 2006 Financial Results

SAN DIEGO, May 3 /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 first quarter ended March 31, 2006.

Highlights:

* Quarterly total revenues increased 78.8% to $43.8 million from $24.5 million in the first quarter 2005

* Quarterly funds from operations (FFO) increased 43.7% to $18.1 million over first quarter 2005

* Total assets increased 116.7% to $1.3 billion from first quarter 2005

* Subsequent to quarter-end, entered into a sale leaseback agreement to acquire Human Genome Sciences' 925,000 square-foot headquarters and manufacturing facilities in Rockville, Maryland for $425 million

"We are pleased that the execution of our strategy has translated into another quarter of solid operating results in our portfolio," commented Alan D. Gold, President and Chief Executive Officer of BioMed Realty Trust. "We are optimistic regarding our growth opportunities going forward given the strength of our investment pipeline and the high level of leasing activity in the general market."

First Quarter 2006 Financial Results

Total revenues for the quarter increased 78.8% to $43.8 million from $24.5 million in the first quarter of 2005, due primarily to the increase in assets related to the company's acquisitions. Net income for the quarter was $4.5 million, or $0.10 per diluted share, compared to $5.8 million, or $0.19 per diluted share, in the first quarter of 2005. Net income and FFO for the first quarter of 2005 included $3.0 million, or $0.09 per diluted share, in lease termination fees related to the company's Industrial Road property.

FFO during the quarter increased 43.7% to $18.1 million from $12.6 million in the comparable period in 2005. FFO per diluted share remained unchanged at $0.37 for the first quarter of 2006 versus 2005. Same property net operating income increased 5.0% to $14.6 million compared to the first quarter of 2005.

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 and a definition of FFO are included at the end of this release.

Financing Activity

As of March 31, 2006, the company's consolidated debt included fixed-rate mortgage indebtedness with an aggregate outstanding principal amount of $231.9 million, excluding $14.5 million of debt premium, and a weighted-average interest rate of 6.44%; a $250 million secured term loan, for which the company entered into an interest rate swap agreement to fix the interest rate at 6.41% until the loan matures on May 30, 2010; and $30.7 million of outstanding borrowings under the company's $250 million unsecured revolving credit facility with a weighted-average interest rate of 6.13%. The company's debt to total market capitalization ratio was 26.4% at March 31, 2006.

Portfolio Update

During the quarter, the company acquired two properties, including undeveloped land to construct the approximately 93,000 square-foot Fairview Research Center in Seattle, Washington, and an 11,293 square-foot facility in New Castle, Delaware.

As of March 31, 2006, the portfolio was 89.2% leased, with 356,000 square feet, or 69.3% of the unleased square footage, under redevelopment. The company also owns undeveloped land that management estimates can support up to 799,000 rentable square feet of laboratory and office space.

As previously announced, subsequent to the quarter end, BioMed signed a definitive purchase and sale agreement with Human Genome Sciences, Inc. to acquire Human Genome Sciences' large-scale manufacturing and headquarters office and laboratory facilities located in Rockville, Maryland for approximately $425 million, excluding closing costs. Along with the four recently constructed buildings representing approximately 925,000 rentable square feet of laboratory, office and manufacturing space, the transaction includes a parking structure and undeveloped land that can support an estimated 500,000 rentable square feet of additional laboratory and office space. The acquisition is anticipated to close in the second quarter of 2006, and is subject to customary closing conditions.

Quarterly Distributions

BioMed Realty Trust's board of directors previously declared a first quarter 2006 dividend of $0.29 per share of common stock, payable to stockholders of record at the close of business on March 31, 2006. The dividend was paid on April 17, 2006.

Earnings Guidance

Due to the recently announced Maryland portfolio acquisition, management is updating its guidance for the full year ending December 31, 2006 for FFO and earnings per diluted share, which are set forth and reconciled below.



                                                             2006
                                                         (Low - High)
    Projected net income per diluted share............   $0.52 - 0.60
        Add:
    Minority interest.................................      $0.04
    Real estate depreciation and amortization.........      $1.16
    Projected FFO per diluted share...................   $1.72 - 1.80


The foregoing estimates, which include the assumed closing of the Human Genome Sciences acquisition, 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) Thursday, May 4, 2006 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) 435-1398 (domestic) or (617) 614-4078 (international) with call ID number 27341746. The call will be archived for 30 days on both web sites. A telephone playback of the conference call will also be available from 1:00 p.m. Pacific Time on Thursday, May 4, 2006 through midnight Pacific Time on Tuesday, May 9, 2006 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international) and using access code: 64984984.

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(TM). The company's tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry, and its 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. BioMed's real estate portfolio consists of 43 properties, representing 64 buildings with approximately 4.8 million rentable square feet in each of the major life science markets in the United States. 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 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 successfully (including the proposed acquisition of the Human Genome Sciences portfolio); 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)

                                            March 31, 2006   December 31, 2005
                                              (Unaudited)
                   ASSETS
    Investments in real estate, net          $1,131,917          $1,129,371
    Investment in unconsolidated partnership      2,476               2,483
    Cash and cash equivalents                    30,365              20,312
    Restricted cash                               5,844               5,487
    Accounts receivable, net                      5,625               9,873
    Accrued straight-line rents, net             10,472               8,731
    Acquired above market leases, net             8,925               8,817
    Deferred leasing costs, net                 130,593             136,640
    Deferred loan costs, net                      4,507               4,855
    Prepaid expenses                              2,840               2,164
    Other assets                                 13,333               8,577
        Total assets                         $1,346,897          $1,337,310

       LIABILITIES AND STOCKHOLDERS' EQUITY
    Mortgage notes payable, net                $246,377            $246,233
    Secured term loan                           250,000             250,000
    Unsecured line of credit                     30,700              17,000
    Security deposits                             6,883               6,905
    Dividends and distributions payable          14,397              13,365
    Accounts payable, accrued expenses,
     and other liabilities                       24,196              23,012
    Acquired below market leases, net            28,477              29,647
        Total liabilities                       601,030             586,162

    Minority interests                           20,367              20,673
    Stockholders' equity:
    Common stock                                    466                 466
    Additional paid-in capital                  758,375             757,591
    Accumulated other comprehensive income        9,256               5,922
    Dividends in excess of earnings             (42,597)            (33,504)
        Total stockholders' equity              725,500             730,475
        Total liabilities and
         stockholders' equity                $1,346,897          $1,337,310



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

                                                  BioMed Realty Trust, Inc.
                                                Three Months    Three Months
                                                   Ended            Ended
                                               March 31, 2006   March 31, 2005

    Revenues:
      Rental                                      $31,178          $14,230
      Tenant recoveries                            12,609            7,254
      Other income                                      6            3,021
        Total revenues                             43,793           24,505
    Expenses:
      Rental operations                             9,543            6,395
      Real estate taxes                             4,242            1,788
      Depreciation and amortization                13,361            6,191
      General and administrative                    4,347            2,566
        Total expenses                             31,493           16,940
        Income from operations                     12,300            7,565
      Equity in net income of
       unconsolidated partnership                      20               51
      Interest income                                 160               60
      Interest expense                             (7,784)          (1,411)
        Income before minority interests            4,696            6,265
      Minority interest in
       consolidated partnerships                       54              109
      Minority interests in
       operating partnership                         (276)            (538)
        Net income                                 $4,474           $5,836

    Basic earnings per share                        $0.10            $0.19
    Diluted earnings per share                      $0.10            $0.19

    Weighted-average common shares outstanding:
      Basic                                    46,369,605       31,129,613
      Diluted                                  49,518,010       34,148,820



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

                                              Three Months       Three Months
                                                 Ended              Ended
                                             March 31, 2006     March 31, 2005

    Net income                                   $4,474              $5,836

    Adjustments:
        Minority interests in
         operating partnership                      276                 538
        Depreciation and amortization -
         real estate assets                      13,381               6,180

    Funds from operations (FFO)                 $18,131             $12,554

    FFO per share - diluted                       $0.37               $0.37

    Weighted-average common shares
     outstanding - diluted                   49,518,010          34,148,820


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.
05/03/2006
CONTACT: Kent Griffin, Chief Financial Officer of BioMed Realty Trust, Inc., +1-858-485-9840
Web site: http://www.biomedrealty.com
(BMR)
05/03/2006 21:49 EDT http://www.prnewswire.com