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BioMed Realty Trust Reports Third Quarter 2006 Financial Results

SAN DIEGO, Nov 06, 2006 /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 third quarter ended September 30, 2006.

    Highlights:

    -- Quarterly total revenues increased 56.1% to $64.5 million from $41.3
       million in the third quarter 2005

    -- Quarterly funds from operations (FFO) per diluted share increased 30.6%
       to $0.47 per share versus the third quarter 2005

    -- Total assets increased 60.8% to $2.1 billion from September 30, 2005

    -- Acquisition of approximately $312.3 million of office and laboratory
       space, representing 1.8 million square feet, including the Pacific
       Research Center in Newark, California for approximately $214.0 million

    -- Closed a $147 million ten-year, fixed-rate mortgage loan from KeyBank
       National Association secured by our Shady Grove Road property in
       Maryland and repaid the related $150 million secured bridge loan

    -- Issuance of $175 million of 4.50% exchangeable senior notes due 2026

    -- Issuance of 8.0 million shares of common stock, raising $229.8 million
       in gross proceeds

"We are again proud of another strong quarter for the company. As we continue on our mission of being the leading provider of real estate to the life science industry, we are very excited by our recent acquisitions, including the Pacific Research Center in the San Francisco Bay area," commented Alan Gold, President and Chief Executive Officer of BioMed Realty Trust.

Third Quarter 2006 Financial Results

Total revenues for the quarter increased to $64.5 million from $41.3 million in the third quarter of 2005, due primarily to the increase in assets related to the company's acquisitions. Net income for the quarter was $10.8 million, or $0.18 per diluted share, compared to $5.2 million, or $0.11 per diluted share, in the third quarter of 2005.

FFO during the quarter increased to $30.0 million from $17.7 million in the comparable period in 2005. FFO per diluted share increased to $0.47 for the third quarter of 2006 versus $0.36 in the third 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

On August 21, 2006, the company completed a follow-on common stock offering of 8.0 million shares at $28.75 per share, resulting in gross proceeds of $229.8 million.

On August 23, 2006, the company closed a $147 million loan secured by the company's Shady Grove Road property in Rockville, Maryland. This loan bears interest at 5.97% per annum and matures in 2016. The company used the proceeds from this loan and borrowings under its revolving credit facility to repay the $150 million bridge loan secured by the same property.

On September 25, 2006, the company issued $175 million aggregate principal amount of exchangeable senior notes due 2026, which bear interest at 4.50% per annum and may be exchangeable under certain circumstances for cash or a combination of cash and the company's common stock.

As of September 30, 2006, the company's consolidated debt included fixed- rate mortgage indebtedness with an aggregate outstanding principal amount of $376.1 million, excluding $13.3 million of debt premium, and a weighted- average interest rate of 6.3% 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; and $175 million aggregate principal amount of 4.50% exchangeable senior notes due 2026. There were no outstanding borrowings under the company's $500 million unsecured revolving credit facility at quarter-end. The company's debt to total market capitalization ratio was 28.2% at September 30, 2006.

"In addition to our exciting investment initiatives, we executed several capital raising transactions that have enabled us to maintain our conservative capital structure to support our continued growth," said Kent Griffin, Chief Financial Officer of BioMed Realty Trust.

    Portfolio Update

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

    -- 3200 Walnut Street - a four-building 149,984 square foot office and
       laboratory facility in Boulder, Colorado

    -- Pacific Research Center - a 1,432,324 square foot campus, and
       undeveloped land that management estimates can support the development
       of up to approximately 400,000 rentable square feet of space, located
       at 7777 Gateway Boulevard in Newark, California

    -- 2-30 Spring Mill Drive - a 76,389 square foot office and laboratory
       facility in Malvern, Pennsylvania

    -- 2600 and 2620 Trade Centre Avenue - a two-building 78,023 square foot
       office and laboratory facility in Longmont, Colorado

    -- 3545-3575 John Hopkins Court - a 69,946 square foot office and
       laboratory facility in San Diego, California

As of September 30, 2006, our 7.7 million square foot portfolio was 92.4% leased, with 392,000 square feet, or 67.1% of the unleased square footage, under redevelopment. The company also owns undeveloped land that management estimates can support up to 1.7 million rentable square feet of laboratory and office space.

Quarterly Distributions

BioMed Realty Trust's board of directors previously declared a third quarter 2006 dividend of $0.29 per share of common stock, payable to stockholders of record at the close of business on September 29, 2006. The dividend was paid on October 16, 2006.

Earnings Guidance

The company's guidance for the year ending December 31, 2007 for earnings per diluted share and FFO per diluted share is set forth and reconciled below.


                                                         2007
                                                     (Low - High)
    Projected net income per diluted share          $0.63 - 0.72
        Add:
    Minority interest                                   $0.03
    Real estate depreciation and amortization           $1.15
    Projected FFO per diluted share                 $1.81 - 1.90

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) Monday, November 6, 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 (866) 770-7125 (domestic) or (617) 213-8066 (international) with call ID number 38928140. 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 Monday, November 6, 2006 through midnight Pacific Time on Saturday, November 11, 2006 by calling (888) 286-8010 (domestic) or (617) 801-6888 (international) and using access code 55127490.

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 52 properties, representing 89 buildings with approximately 7.7 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.



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

                                                    September 30, December 31,
                                                         2006         2005
                                                      (Unaudited)
                        ASSETS
    Investments in real estate, net                  $1,894,489   $1,129,371
    Investment in unconsolidated partnership              2,445        2,483
    Cash and cash equivalents                            47,318       20,312
    Restricted cash                                       6,100        5,487
    Accounts receivable, net                              4,616        9,873
    Accrued straight-line rents, net                     16,576        8,731
    Acquired above market leases, net                     8,018        8,817
    Deferred leasing costs, net                         127,141      136,640
    Deferred loan costs, net                             12,001        4,855
    Prepaid expenses                                      5,981        2,164
    Other assets                                         14,661        8,577
        Total assets                                 $2,139,346   $1,337,310

         LIABILITIES AND STOCKHOLDERS' EQUITY

    Mortgage notes payable, net                        $389,407     $246,233
    Secured term loan                                   250,000      250,000
    Unsecured exchangeable notes                        175,000            -
    Unsecured line of credit                                  -       17,000
    Security deposits                                     6,556        6,905
    Dividends and distributions payable                  19,823       13,365
    Accounts payable, accrued expenses, and other
     liabilities                                         34,565       23,012
    Acquired below market leases, net                    26,312       29,647
        Total liabilities                               901,663      586,162

    Minority interests                                   19,596       20,673

    Stockholders' equity:
     Preferred stock, $.01 par value, 15,000,000
      shares authorized, none issued
      or outstanding at September 30, 2006 and
      December 31, 2005, respectively                         -            -
    Common stock, $.01 par value, 100,000,000 shares
     authorized, 65,493,232 and 46,634,432 shares issued
     and outstanding at September 30, 2006 and
     December 31, 2005, respectively                        655          466
    Additional paid-in capital                        1,271,213      757,591
    Accumulated other comprehensive income                6,435        5,922
    Dividends in excess of earnings                     (60,216)     (33,504)
        Total stockholders' equity                    1,218,087      730,475
        Total liabilities and stockholders' equity   $2,139,346   $1,337,310



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

                                      For the Three           For the Nine
                                      Months Ended            Months Ended
                                      September 30,           September 30,
                                   2006         2005       2006          2005
                                       (Unaudited)             (Unaudited)
    Revenues:
      Rental                      $49,758     $28,593    $117,492     $62,821
      Tenant recoveries            14,743      12,225      40,191      28,035
      Other income                      9         512          79       3,508
         Total revenues            64,510      41,330     157,762      94,364
    Expenses:
      Rental operations            11,128       9,763      30,313      22,879
      Real estate taxes             5,736       3,573      14,564       7,836
      Depreciation and
       amortization                18,618      12,164      46,694      26,832
      General and administrative    4,609       3,756      13,162       9,001
         Total expenses            40,091      29,256     104,733      66,548
         Income from operations    24,419      12,074      53,029      27,816
    Equity in net income of
     unconsolidated partnership        20          20          62          91
    Interest income                   218         807         813         987
    Interest expense              (13,346)     (7,422)    (30,383)    (15,645)
         Income before minority
          interests                11,311       5,479      23,521      13,249
    Minority interests in
     consolidated partnerships         15          45         115         219
    Minority interests in operating
     partnership                     (514)       (323)     (1,192)       (991)
         Net income               $10,812      $5,201     $22,444     $12,477
    Basic earnings per share        $0.18       $0.11       $0.42       $0.34
    Diluted earnings per share      $0.18       $0.11       $0.42       $0.34

    Weighted-average common shares
     outstanding:

    Basic                      60,477,672  46,287,617  52,822,498  36,406,068
                               63,646,647  49,444,409  55,926,343  39,545,665
    Diluted



                          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     Nine Months Ended
                                       September 30,          September 30,
                                    2006         2005       2006         2005
    Net income                    $10,812       $5,201    $22,444     $12,477
    Adjustments:
      Minority interests in
       operating partnership          514         323       1,192         991
    Depreciation and
     amortization - real estate
     assets                        18,638      12,184      46,754      26,862
    Funds from operations         $29,964     $17,708     $70,390     $40,330
    Funds from operations
     per share - diluted            $0.47       $0.36       $1.26       $1.02
    Weighted-average common
     shares
     outstanding - diluted     63,646,647  49,444,409  55,926,343  39,545,665

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.

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

http://www.biomedrealty.com