Press Releases

    Print Page  Close Window
BioMed Realty Trust Reports Second Quarter 2006 Financial Results

SAN DIEGO, Aug. 2 /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, 2006.

    Highlights:

    *  Quarterly total revenues increased 73.3% to $49.5 million from $28.5
       million in the second quarter 2005

    *  Quarterly funds from operations (FFO) per diluted share increased 41.4%
       to $0.41 per share versus the second quarter 2005

    *  Total assets increased 36.2% to $1.8 billion from June 30, 2005

    *  Acquisition of over $463 million of office and laboratory space,
       representing approximately 1.1 million square feet, including the Human
       Genome Sciences, Inc. headquarters and manufacturing facilities

    *  Issuance of approximately 10.4 million shares of common stock, raising
       $299 million in gross proceeds

    *  Amendment of unsecured revolving credit facility, increasing the
       facility from $250 million to $500 million, extending the maturity date
       to June 27, 2009 and lowering the borrowing rate

    *  Entered into an agreement to acquire the 1.4 million square foot Sun
       Microsystems, Inc. campus in Newark, California, which subsequently
       closed on July 11, 2006

"The second quarter was a tremendous quarter for the company, highlighting our management team's expertise. In addition to solid operating performance for our core portfolio, we continue to execute on our focused investment strategy and positioned the company's capital structure to support the continued growth of our business," commented Alan Gold, President and Chief Executive Officer of BioMed Realty Trust.

Second Quarter 2006 Financial Results

Total revenues for the quarter increased to $49.5 million from $28.5 million in the second quarter of 2005, due primarily to the increase in assets related to the company's acquisitions. Net income for the quarter was $7.2 million, or $0.14 per diluted share, compared to $1.4 million, or $0.05 per diluted share, in the second quarter of 2005.

FFO during the quarter increased significantly to $22.3 million from $10.1 million in the comparable period in 2005. FFO per diluted share increased to $0.41 for the second quarter of 2006 versus $0.29 in the second quarter of 2005. Same property net operating income increased to $14.6 million, a 2.1% increase over the second 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 June 30, 2006, the company's consolidated debt included fixed-rate mortgage indebtedness with an aggregate outstanding principal amount of $230.5 million, excluding $13.9 million of debt premium, and a weighted-average interest rate of 6.4% at quarter end; a $250 million secured term loan, for which the company, through an interest rate swap, has fixed the interest rate at 6.4% until the loan matures on May 30, 2010; a $150 million secured bridge loan bearing interest at a floating rate equal to 6.7% at quarter end; and $60.8 million of outstanding borrowings under the company's $500 million unsecured revolving credit facility bearing interest at a floating rate equal to 6.5% at quarter end. The company's debt to total market capitalization ratio was 28.2% at June 30, 2006.

Portfolio Update

During the second quarter, the company acquired five properties, including:

    *  Charles Street -- a 47,912 square foot office and laboratory facility
       in Cambridge, Massachusetts

    *  Shady Grove Road -- Human Genome Sciences, Inc.'s 635,058 square foot
       headquarters office and laboratory facility in Rockville, Maryland

    *  Belward Campus Drive -- Human Genome Sciences' 289,912 square foot
       large-scale manufacturing facility in Rockville, Maryland

    *  One Research Way -- a 49,421 square foot property in Princeton, New
       Jersey

    *  34175 Ardenwood Boulevard -- an 87.5% interest in a 72,500 square foot
       facility in Fremont, California

As of June 30, 2006, the portfolio was 91.4% leased, with 344,000 square feet, or 68.2% of the unleased square footage, under redevelopment. The company also owns undeveloped land that management estimates can support up to 1,299,000 rentable square feet of laboratory and office space.

Quarterly Distributions

BioMed Realty Trust's board of directors previously declared a second quarter 2006 dividend of $0.29 per share of common stock, payable to stockholders of record at the close of business on June 30, 2006. The dividend was paid on July 17, 2006.

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, August 3, 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) 291-5365 (domestic) or (617) 614-3922 (international) with call ID number 68886932. 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, August 3, 2006 through midnight Pacific Time on Tuesday, August 8, 2006 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international) and using access code 60871763.

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 50 properties, representing 86 buildings with approximately 7.5 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; 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, 2006   December 31, 2005
                                              (Unaudited)

                      ASSETS

    Investments in real estate, net            $1,589,788        $1,129,371
    Investment in unconsolidated partnership        2,454             2,483
    Cash and cash equivalents                      23,093            20,312
    Restricted cash                                 5,249             5,487
    Accounts receivable, net                        2,981             9,873
    Accrued straight-line rents, net               12,855             8,731
    Acquired above market leases, net               8,625             8,817
    Deferred leasing costs, net                   126,549           136,640
    Deferred loan costs, net                        6,282             4,855
    Prepaid expenses                                2,362             2,164
    Other assets                                   26,714             8,577
        Total assets                           $1,806,952        $1,337,310

        LIABILITIES AND STOCKHOLDERS' EQUITY

    Mortgage notes payable, net                  $244,402          $246,233
    Secured term loan                             250,000           250,000
    Secured bridge loan                           150,000                --
    Unsecured line of credit                       60,800            17,000
    Security deposits                               7,264             6,905
    Dividends and distributions payable            17,427            13,365
    Accounts payable, accrued expenses,
     and other liabilities                         23,611            23,012
    Acquired below market leases, net              27,529            29,647
        Total liabilities                         781,033           586,162

    Minority interests                             19,907            20,673

    Stockholders' equity:
      Common stock, $.01 par value                    571               466
      Additional paid-in capital                1,045,831           757,591
      Accumulated other comprehensive income       11,646             5,922
      Dividends in excess of earnings             (52,036)          (33,504)

        Total stockholders' equity              1,006,012           730,475

        Total liabilities and stockholders'
         equity                                $1,806,952        $1,337,310



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

                             Three Months Ended         Six Months Ended
                                   June 30,                  June 30,
                             2006          2005         2006         2005

    Revenues:
      Rental               $36,556       $19,990      $67,734      $34,276
      Tenant recoveries     12,839         8,556       25,448       15,810
      Other income              64            --           70        2,948

        Total revenues      49,459        28,546       93,252       53,034

    Expenses:
      Rental operations      9,642         6,721       19,185       13,116
      Real estate taxes      4,587         2,476        8,828        4,264
      Depreciation and
       amortization         14,714         8,476       28,075       14,667
      General and
       administrative        4,206         2,695        8,554        5,245

        Total expenses      33,149        20,368       64,642       37,292

        Income from
         operations         16,310         8,178       28,610       15,742

      Equity in net income
       of unconsolidated
       partnership              22            20           42           71
      Interest income          435           119          595          180
      Interest expense      (9,253)       (6,812)     (17,037)      (8,223)

        Income before
         minority interests  7,514         1,505       12,210        7,770

      Minority interests in
       consolidated
       partnerships             46            65          100          174
      Minority interests in
       operating partnership  (402)         (130)        (678)        (668)

        Net income          $7,158        $1,440      $11,632       $7,276

    Basic earnings per
     share                   $0.14         $0.05        $0.24        $0.23

    Diluted earnings per
     share                   $0.14         $0.05        $0.24        $0.23

    Weighted-average
     common shares
     outstanding:

       Basic            51,394,117    31,861,536   48,895,318   31,514,608

       Diluted          54,534,393    34,893,367   52,062,831   34,544,121



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

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

                                Three Months Ended       Six Months Ended
                                     June 30,                June 30,
                                2006         2005        2006        2005

    Net income                 $7,158       $1,440     $11,632      $7,276
    Adjustments:
      Minority interests in
       operating partnership      402          130         678         668
      Depreciation and
       amortization -- real
       estate assets           14,734        8,496      28,115      14,677

    Funds from operations     $22,294      $10,066     $40,425     $22,621

    Funds from operations
     per share -- diluted       $0.41        $0.29       $0.78       $0.65

    Weighted-average common
     shares outstanding --
     diluted               54,534,393   34,893,367  52,062,831  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.
08/02/2006

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