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BioMed Realty Trust Reports Fourth Quarter And Full-Year 2012 Financial Results



   BioMed Realty Trust Reports Fourth Quarter And Full-Year 2012 Financial
                                   Results

Fourth Quarter Leasing Volume of 624,900 Square Feet; Fourth Quarter FFO and
AFFO per Share Up 20.0% and 17.9% Over 2011, Respectively

PR Newswire

SAN DIEGO, Feb. 5, 2013

SAN DIEGO, Feb. 5, 2013 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR),
a real estate investment trust (REIT) that delivers optimal real estate
solutions for the life science industry, today announced financial results for
the fourth quarter and full-year ended December 31, 2012.

Fourth Quarter 2012 Highlights

  o Executed 30 leasing transactions during the quarter representing
    approximately 624,900 square feet, driving the total operating portfolio
    leased percentage on a weighted-average basis to approximately 92.1% at
    quarter end, comprised of:

       o 13 new leases totaling approximately 256,600 square feet, highlighted
         by:

            + a lease expansion with Ironwood Pharmaceuticals, Inc. for 93,000
              square feet at the company's 301 Binney Street property in
              Cambridge, Massachusetts; and
            + a lease expansion with Regeneron Pharmaceuticals, Inc. for an
              additional approximately 80,500 square feet at The Landmark at
              Eastview campus in Tarrytown, New York.

       o 17 lease renewals totaling approximately 368,300 square feet,
         highlighted by:

            + a lease extension with Ironwood Pharmaceuticals, Inc. for the
              balance of the approximately 210,300 square feet currently
              leased at the 301 Binney Street property through January 31,
              2018; and
            + a lease extension with NuGen Technologies, Inc. for
              approximately 47,900 square feet at the company's Industrial
              Road property in San Carlos, California.

  o Increased funds from operations (FFO) for the quarter by 20.0% to $0.36
    per diluted share, as compared to $0.30 per diluted share in the fourth
    quarter of 2011.
  o Increased adjusted funds from operations (AFFO) for the quarter by 17.9%
    to $0.33 per diluted share, as compared to $0.28 per diluted share in the
    fourth quarter of 2011.
  o Increased same property net operating income on a cash basis for the
    period by 6.1% and the same property leased percentage increased by 5.7%
    as compared to the same period in 2011.
  o Generated total revenues for the quarter of $138.8 million, up 23.9% from
    $112.0 million in the same period in 2011 and the highest in the company's
    history. Rental revenues for the quarter increased by 22.5% to $104.0
    million from $84.9 million in the same period in 2011, the highest in the
    company's history.
  o Reported net income available to common stockholders for the quarter of
    $4.5 million, or $0.03 per diluted share.

Alan D. Gold, Chairman and Chief Executive Officer of BioMed Realty,
commented, "We are very pleased to report another quarter and year of strong
execution of our proven business model. In 2012, we continued to reap the
benefits of strong life science industry trends.  Leveraging this strength
with the location and quality of our properties combined with the skill of our
operating team has allowed us to make significant market share gains.  In
fact, we've increased our leased percentage by 1,000 basis points over the
last nine quarters – bringing our total operating portfolio to over 92%
leased.  The cumulative effect of this sustained success helped us deliver a
20% increase in FFO per share in the fourth quarter of 2012."

2012 Highlights

During the full year 2012, the company:

  o Executed 97 leasing transactions representing approximately 1.8 million
    square feet, driving year-over-year net absorption in same property
    portfolio of 570 basis points and increasing the total operating portfolio
    weighted-average leased percentage by 4.9% to 92.1% at year-end:

       o 61 new leases totaling approximately 1.1 million square feet.
       o 36 leases amended to extend their terms totaling approximately
         703,200 square feet.
       o Including leasing activity in the fourth quarter of 2011, the company
         executed approximately 2.1 million square feet of gross leasing
         transactions, representing approximately 172% of its previously
         disclosed five-quarter goal of 1.2 million square feet.

  o Increased total revenues 18.3% to $518.2 million from $438.2 million in
    2011 and rental revenues 19.2% to $392.6 million from $329.5 million in
    2011.
  o Increased FFO excluding acquisition-related expenses, or core funds from
    operations (CFFO), for the year by 9.2% to $1.31 per diluted share,
    compared to $1.20 per diluted share in 2011. FFO, calculated in accordance
    with standards established by NAREIT, was $1.23 per diluted share.
  o Increased AFFO to $1.29 per diluted share for the year, as compared to
    $1.15 per diluted share in 2011, an increase of 12.2% per diluted share.
  o Reported a net loss available to common stockholders of $2.8 million, or
    $0.03 per diluted share.  The loss includes acquisition-related expenses
    totaling $13.1 million.
  o Acquired six new properties for a total investment of approximately $436.4
    million, increasing the company's gross assets year-over-year by 11.4% to
    $5.4 billion at year-end. The properties were 93.3% leased at acquisition
    and comprise approximately 1.0 million rentable square feet.

According to Kent Griffin, President and Chief Operating Officer of BioMed
Realty, "Our 2012 results were truly extraordinary and a testimony to our
commitment to creating value from the ground up. In addition to the 1.8
million square feet of gross leasing, we identified and delivered $436 million
of attractive new investments by leveraging our strong platform, industry
expertise and valuable relationships. Individually and collectively, our 2012
investments allow us to capitalize on our core competencies – our expertise in
life science real estate combined with a sound, sustained capital strategy –
for the benefit of our stockholders. We are very excited about 2013 and the
opportunities in front of us, as the result of the success and momentum
delivered throughout all facets of our business in 2012."

FFO, CFFO and AFFO are supplemental non-GAAP financial measures 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, CFFO and AFFO and
definitions of terms are included at the end of this release. 

Portfolio Update

During the quarter ended December 31, 2012, the company executed 30 leasing
transactions representing approximately 624,900 square feet, comprised of 13
new leases totaling approximately 256,600 square feet and 17 lease renewals
totaling approximately 368,300 square feet.  Leasing activity for the quarter
included a lease expansion and extension with Ironwood Pharmaceuticals, Inc.
for 93,000 square feet at the company's 301 Binney Street property in
Cambridge, Massachusetts, bringing Ironwood's total occupancy at the property
to approximately 303,300 square feet, and a lease expansion with Regeneron
Pharmaceuticals, Inc. for an additional approximately 80,500 square feet at
The Landmark at Eastview campus in Tarrytown, New York.

During 2012, the company executed a total of 97 leasing transactions
representing approximately 1.8 million square feet, including 61 new leases
totaling approximately 1.1 million square feet and 36 leases amended to extend
their terms totaling approximately 703,200 square feet. Including leasing
activity in the fourth quarter of 2011, the company executed approximately 2.1
million square feet of gross leasing transactions, representing approximately
172% of its original five-quarter goal of 1.2 million square feet.

Same property net operating income on a cash basis increased for the period by
6.1% and the same property leased percentage increased by 5.7% for the quarter
compared to the same period in 2011, primarily as a result of sustained
leasing success and contractual rent escalations.   

The total operating portfolio was approximately 92.1% leased on a
weighted-average basis as of December 31, 2012, an increase of 4.9% as
compared to the same period last year. Since the third quarter of 2010, the
company's total operating portfolio leased percentage on a weighted-average
basis has increased 10.0%.

For the full year 2012, the company acquired six new properties for a total
estimated investment of approximately $436.4 million comprising approximately
1.0 million rentable square feet, which were 93.3% leased at acquisition on a
weighted-average basis. 

At December 31, 2012, the company's total portfolio comprised approximately
13.1 million rentable square feet with an additional 4.0 million square feet
of development potential.

Quarterly and Annual Distributions

BioMed Realty Trust's board of directors previously declared a fourth quarter
2012 dividend of $0.235 per share of common stock, representing a 9.3%
increase over the company's third quarter 2012 dividend of $0.215 per share,
and a dividend of $0.46094 per share of the company's 7.375% Series A
Cumulative Redeemable Preferred Stock for the period from October 16, 2012
through January 15, 2013.  For the full year 2012, the company declared
dividends totaling $0.88 per common share, representing a 10.0% increase over
common stock dividends declared in 2011, and $1.84376 per Series A preferred
share.

Earnings Guidance

The company's updated 2013 guidance for net income per diluted share and FFO
per diluted share are set forth and reconciled below. Projected net income per
diluted share and FFO per diluted share are based upon estimated,
weighted-average diluted common shares outstanding of approximately 168.0
million.

                                                     2013
                                                     (Low - High)
Projected net income per diluted share available     $0.06 – $0.14
to common stockholders
     Add:
  Real estate depreciation and amortization          $1.34
  Noncontrolling interests in operating partnership  $0.00
     Less:
  Net effect of assumed conversion of exchangeable   ($0.04)
     senior notes due 2030
Projected FFO per diluted share                      $1.36 – $1.44

The company continues to target new investment opportunities, including
acquisitions and new development projects; however, the company's 2013 FFO
estimates do not reflect the impact of any future new investments
(acquisitions or development) as the FFO impact of such investments may vary
significantly based on the nature of these investments, timing and other
factors.  In addition, these projections reflect approximately $5.8 million
($0.03 per diluted share) in other revenue related to Merck's 2012 lease
termination at one of the company's properties.

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,
financings, acquisitions, development and redevelopment and the amount and
timing of acquisitions, 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 website at www.biomedrealty.com.

Teleconference and Webcast

BioMed Realty will conduct a conference call and webcast at 11:00 a.m. Pacific
Time (2:00 p.m. Eastern Time) on Wednesday, February 6, 2013 to discuss the
company's financial results and operations for the quarter and year.  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 at www.earnings.com, which will include an online
slide presentation to accompany the call, or live by calling (877) 261-8990
(domestic) or (847) 619-6441 (international) with call ID number 34178179. The
complete webcast will be archived for 30 days on both web sites. A telephone
playback of the conference call will also be available from 1:30 p.m. Pacific
Time on Wednesday, February 6, 2013 until midnight Pacific Time on Monday,
February 11, 2013 by calling (888) 843-7419 (domestic) or (630) 652-3042
(international) and using access code 34178179#.

About BioMed Realty Trust

BioMed Realty delivers optimal real estate solutions for biotechnology and
pharmaceutical companies, scientific research institutions, government
agencies and other entities involved in the life science industry. BioMed
Realty owns or has interests in properties comprising approximately 13.1
million rentable square feet. The company's properties are located
predominantly in the major U.S. life science markets of Boston, San Francisco,
Maryland, San Diego, New York/New Jersey, Pennsylvania and Seattle, which have
well-established reputations as centers for scientific research.  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, the use of debt to fund acquisitions, developments and other
investments, and the ability to refinance indebtedness as it comes due;
failure to maintain the company's investment grade credit ratings with the
ratings agencies; failure to manage effectively the company's growth and
expansion into new markets, or to complete or integrate acquisitions and
developments successfully; reductions in asset valuations and related
impairment charges; risks and uncertainties affecting property development and
construction; risks associated with downturns in foreign, domestic and local
economies, changes in interest rates and foreign currency exchange rates, and
volatility in the securities markets; ownership of properties outside of the
United States that subject the company to different and potentially greater
risks than those associated with the company's domestic operations; risks
associated with the company's investments in loans, including borrower
defaults and potential principal losses; 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, except share data)
                                                    December 31,  December 31,
                                                    2012          2011
ASSETS
Investments in real estate, net                     $  4,319,716  $ 3,950,246
Investments in unconsolidated partnerships          32,367        33,389
Cash and cash equivalents                           19,976        16,411
Accounts receivable, net                            4,507         5,141
Accrued straight-line rents, net                    152,096       130,582
Deferred leasing costs, net                         172,363       157,255
Other assets                                        133,454       135,521
Total assets                                        $  4,834,479  $ 4,428,545
LIABILITIES AND EQUITY
Mortgage notes payable, net                         $  571,652    $ 587,844
Exchangeable senior notes                           180,000       180,000
Unsecured senior notes, net                         894,177       645,581
Unsecured senior term loan                          405,456       —
Unsecured line of credit                            118,000       268,000
Accounts payable, accrued expenses and other        180,653       134,924
liabilities
Total liabilities                                   2,349,938     1,816,349
Equity:
Stockholders' equity:
Preferred stock, $.01 par value, 15,000,000 shares
authorized:
7.375% Series A cumulative redeemable preferred
stock,                                              191,469       191,469
$198,000 liquidation preference ($25.00 per share),
7,920,000 shares
issued and outstanding at December 31, 2012
and December 31, 2011
Common stock, $.01 par value, 200,000,000 shares
authorized,
154,327,818 and 154,101,482 shares issued and       1,543         1,541
outstanding
at December 31, 2012 and December 31, 2011,
respectively
Additional paid-in capital                          2,781,849     2,773,994
Accumulated other comprehensive loss, net           (54,725)      (60,138)
Dividends in excess of earnings                     (443,280)     (304,759)
Total stockholders' equity                          2,476,856     2,602,107
Noncontrolling interests                            7,685         10,089
Total equity                                        2,484,541     2,612,196
Total liabilities and equity                        $  4,834,479  $ 4,428,545

 

 

BIOMED REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data)
                            Three Months Ended          Year Ended
                            December 31,                December 31,
                            2012         2011           2012       2011
                            (Unaudited)  (Unaudited)
Revenues:
Rental                      $  103,978   $  84,854    $   392,628  $  329,454
Tenant recoveries           31,638       26,098       120,793      101,965
Other revenue               3,155        1,006        4,746        6,781
Total revenues              138,771      111,958      518,167      438,200
Expenses:
Rental operations           39,502       31,899       152,219      128,146
Depreciation and            52,963       36,670       196,844      142,319
amortization
General and administrative  10,608       9,169        38,025       30,966
Acquisition-related         22           309          13,077       1,099
expenses
Total expenses              103,095      78,047       400,165      302,530
Income from operations      35,676       33,911       118,002      135,670
Equity in net loss of       (379)        (640)        (1,389)      (2,489)
unconsolidated partnerships
Interest expense, net       (26,745)     (21,725)     (99,608)     (89,181)
Other (expense) / income    (292)        4,244        (872)        (1,760)
Income from continuing      8,260        15,790       16,133       42,240
operations
    Income / (loss) from    —            163          (4,370)      474
discontinued operations
    Net income              8,260        15,953       11,763       42,714
Net (income) / loss
attributable to             (93)         (244)        62           (525)
noncontrolling interests
Net income attributable to  8,167        15,709       11,825       42,189
the company
Preferred stock dividends   (3,651)      (3,651)      (14,603)     (16,033)
Cost on redemption of                                               
preferred stock             —            —            —
                                                                   (165)
Net income / (loss)
available to common         $  4,516     $  12,058    $   (2,778)  $  25,991
stockholders
Income / (loss) from
continuing operations per
share available to common
stockholders:
Basic and diluted earnings  $  0.03      $  0.08      $   —        $  0.19
per share
Income / (loss) from
discontinued operations per
share

available to common
stockholders:
Basic and diluted earnings  $  —         $  —         $   (0.03)   $  —
per share
Net income / (loss) per
share available to common 
stockholders:
Basic and diluted earnings  $  0.03      $  0.08      $   (0.03)   $  0.19
per share
Weighted-average common
shares outstanding:
Basic                       152,790,669  140,909,345  152,752,086  132,625,915
Diluted                     155,728,210  143,889,324  155,700,387  135,609,843

 

 

BIOMED REALTY TRUST, INC.
CONSOLIDATED FUNDS FROM OPERATIONS

(In thousands, except share data)

(Unaudited)
Our FFO and CFFO available to common shares and partnership and LTIP units and
a reconciliation to net income for the three and twelve months ended December
31, 2012 and 2011 was as follows:
                      Three Months Ended              Year Ended
                      December 31,                    December 31,
                      2012            2011            2012         2011
Net income  / (loss)
available to common   $    4,516      $    12,058     $  (2,778)   $  25,991
stockholders
Adjustments:
Impairment loss       —               —               4,552        —
Gain on revaluation
of acquired           —               (4,679)         —            (4,679)
unconsolidated
partnership
Noncontrolling
interests in          86              252             (54)         569
operating partnership
Depreciation and
amortization –        323             826             1,291        3,636
unconsolidated
partnerships
Depreciation and
amortization –        52,963          36,670          196,844      142,319
consolidated entities
Depreciation and
amortization –        —               92              92           362
discontinued
operations
Depreciation and
amortization –
allocable to
noncontrolling        (30)            (27)            (112)        (104)
interest of
consolidated joint
ventures
FFO available to
common shares and     $    57,858     $    45,192     $  199,835   $  168,094
units – basic
     Interest expense
on exchangeable            1,688           1,688         6,750        6,750
senior notes
FFO available to
common shares and     $    59,546     $    46,880     $  206,585   $  174,844
units – diluted
    
Acquisition-related        22              309           13,077       1,099
expenses
CFFO available to
common shares and     $    59,568     $    47,189     $  219,662   $  175,943
units – diluted
FFO per share –       $    0.36       $    0.30       $  1.23      $  1.19
diluted
CFFO per share –      $    0.36       $    0.30       $  1.31      $  1.20
diluted
Weighted-average
common shares and     167,524,738     155,368,154     167,437,187  147,061,166
units outstanding –
diluted (1)

 

Our AFFO available to common shares and partnership and LTIP units and a
reconciliation of CFFO to AFFO for the three and twelve months ended December
31, 2012 and 2011 was as follows:

                            Three Months Ended        Year Ended
                            December 31,              December 31,
                            2012         2011         2012         2011
CFFO - diluted              $   59,568   $   47,189   $  219,662   $  175,943
Adjustments:
Recurring capital
expenditures and second     (5,738)      (3,201)      (14,822)     (13,880)
generation tenant
improvements
Leasing commissions         (1,476)      (1,192)      (6,231)      (4,317)
Non-cash revenue            (3,876)      (4,000)      (7,870)      (14,041)
adjustments
Non-cash debt adjustments   3,122        3,045        12,202       15,819
Non-cash equity             2,860        2,029        11,530       7,583
compensation
Cost on redemption of       —            —            —            165
preferred stock
Depreciation included in
general and administrative  510          387          1,890        1,600
expenses
Share of non-cash
unconsolidated partnership  34           (10)         87           (35)
adjustments
AFFO available to common    $   55,004   $   44,247   $  216,448   $  168,837
shares and units
AFFO per share – diluted    $   0.33     $   0.28     $  1.29      $  1.15
Weighted-average common
shares and units
outstanding -               167,524,738  155,368,154  167,437,187  147,061,166

diluted (1)

    The three and twelve months ended December 31, 2012 include 10,259,496
    shares of common stock potentially issuable pursuant to the exchange
    feature of the exchangeable senior notes due 2030 based on the "if
    converted" method. The three and twelve months ended December 31, 2011
    include 10,017,858 shares of common stock potentially issuable pursuant to
    the exchange feature of the exchangeable senior notes due 2030 based on
(1) the "if converted" method.  The three months ended December 31, 2012 and
    2011 include 1,537,032 and 1,460,972 shares of unvested restricted stock,
    respectively, which are considered anti-dilutive for purposes of
    calculating diluted earnings per share. The years ended December 31, 2012
    and 2011 include 1,477,304 and 1,433,465 shares of unvested restricted
    stock, respectively, which are considered anti-dilutive for purposes of
    calculating diluted earnings per share.

We present funds from operations, or FFO, FFO excluding acquisition-related
expenses, or CFFO, and adjusted funds from operations, or AFFO, available to
common shares and OP units because we consider them to be important
supplemental measures of our operating performance and believe they are
frequently used by securities analysts, investors and other interested parties
in the evaluation of REITs, many of which present FFO, CFFO and AFFO when
reporting their results.

FFO, CFFO and AFFO are 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, CFFO and AFFO exclude depreciation and amortization unique to
real estate, gains and losses from property dispositions and extraordinary
items, they provide performance measures that, when compared year over year,
reflect 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. As defined
by NAREIT, FFO represents net income (computed in accordance with GAAP),
excluding gains (or losses) from sales of depreciable property, impairment
charges on depreciable real estate, real estate related depreciation and
amortization (excluding amortization of loan origination costs) and after
adjustments for unconsolidated partnerships and joint ventures.

We calculate CFFO by adding acquisition-related expenses to FFO. We calculate
AFFO by adding to CFFO: (a) non-cash revenues and expenses, (b) recurring
capital expenditures and second generation tenant improvements and (c) leasing
commissions.

Our computations may differ from the methodologies for calculating FFO, CFFO
and AFFO utilized by other equity REITs and, accordingly, may not be
comparable to such other REITs. Further, FFO, CFFO and AFFO do 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, CFFO and AFFO should not be considered alternatives to net
income/(loss) (computed in accordance with GAAP) as indicators of our
financial performance or to cash flow from operating activities (computed in
accordance with GAAP) as indicators of our liquidity, nor are they indicative
of funds available to fund our cash needs, including our ability to pay
dividends or make distributions. FFO, CFFO and AFFO should be considered only
as supplements to net income computed in accordance with GAAP as measures of
our operations.

SOURCE BioMed Realty Trust, Inc.

Website: http://www.biomedrealty.com
Contact: Rick Howe, Senior Director, Corporate Communications,
+1-858-207-5859, richard.howe@biomedrealty.com
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