BioMed Realty Trust Reports First Quarter 2013 Financial Results

       BioMed Realty Trust Reports First Quarter 2013 Financial Results

First Quarter Leasing Volume of 583,700 Square Feet

PR Newswire

SAN DIEGO, May 1, 2013

SAN DIEGO, May 1,2013 /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 first quarter ended March 31, 2013.

First Quarter 2013 Highlights

  oExecuted 29 leasing transactions during the quarter representing
    approximately 583,700 square feet, contributing to an operating portfolio
    leased percentage on a weighted-average basis of approximately 91.7% at
    quarter end, and comprised of:

       o16 new leases totaling approximately 419,700 square feet, highlighted
         by:

            +a pre-lease with Life Technologies Corporation for approximately
              204,900 square feet at the company's Science Center at Oyster
              Point property in South San Francisco, California;
            +a pre-lease with Momenta Pharmaceuticals, Inc. for approximately
              104,700 square feet at the company's 320 Bent Street property in
              Cambridge, Massachusetts;
            +a lease expansion with Risk Management Solutions for
              approximately 31,500 square feet at the company's Pacific
              Research Center (PRC) in Newark, California; and
            +a new lease with a global pharmaceutical company for
              approximately 30,200 square feet at the company's Monte Villa
              property in Bothell, Washington.

       o13 lease renewals totaling approximately 164,000 square feet,
         highlighted by:

            +a lease extension with Momentive Performance Materials, Inc. for
              approximately 61,900 square feet at the company's The Landmark
              at Eastview campus in Tarrytown, New York; and
            +a lease extension with Fujifilm Diosynth Biotechnologies for
              approximately 30,600 square feet at the company's 3000 Weston
              Parkway property in Cary, North Carolina.

  oIn connection with the new Life Technologies lease at the company's
    Science Center at Oyster Point, the company entered into a lease
    termination agreement with Elan Corporation related to their departure
    from this property in South San Francisco. The company received a
    termination fee of $46.5 million which is expected to increase funds from
    operations (FFO) by approximately $35.2 million, of which approximately
    $21.6 million ($0.12 per diluted share) was recognized during the first
    quarter. The remaining $13.6 million is expected to be recognized in the
    second quarter.
  oCore funds from operations (CFFO) was $0.42 per diluted share, as compared
    to $0.30 per diluted share in the first quarter of 2012. FFO, calculated
    in accordance with standards established by NAREIT, was $0.41 per diluted
    share, as compared to $0.30 per diluted share in the first quarter of
    2012.
  oAdjusted funds from operations (AFFO) for the quarter was $0.47 per
    diluted share, as compared to $0.30 per diluted share in the first quarter
    of 2012.
  oSame property net operating income on a cash basis increased 3.5% as
    compared to the same period in 2012.
  oGenerated total revenues for the quarter of approximately $160.5 million,
    up from approximately $120.0 million in the same period in 2012 and the
    highest in the company's history. Rental revenues for the quarter
    increased to approximately $103.0 million from approximately $91.5 million
    in the same period in 2012.
  oReported net income available to common stockholders for the quarter of
    approximately $8.4 million, or $0.05 per diluted share.
  oAcquired the Woodside Technology Park property in Redwood City, California
    for $87.0 million, excluding transaction costs, comprised of three
    buildings with an aggregate of approximately 256,000 square feet of
    laboratory and office space, which was 100% leased to five tenants at
    acquisition.
  oAcquired The Campus at Lincoln Centre in Foster City, California from Life
    Technologies Corporation for $37.0 million, excluding transaction costs.
    The company intends to redevelop the 19-acre site, which currently
    includes seven buildings encompassing approximately 280,000 square feet.
  oCompleted a follow-on public offering of common stock, raising
    approximately $287.0 million in net proceeds.
  oCompleted the redemption of all 7,920,000 shares of its Series A preferred
    stock at $25.30217 per share, equal to the original issuance price of
    $25.00 per share, plus accrued and unpaid dividends up to the redemption
    date.
  oContinued to enhance the breadth and depth of the company's organization:

       oAppointed Daniel M. Bradbury, former Chief Executive Officer of
         Amylin Pharmaceuticals, to its Board of Directors; and
       oPromoted Denis J. Sullivan, Jr. to Vice President, Acquisitions.

  oEntered into a definitive agreement to merge with Wexford Science &
    Technology, LLC, a private real estate investment and development company
    that owns and develops institutional quality life science real estate for
    academic and medical research organizations. Wexford Science & Technology
    owns approximately 1.6 million square feet of laboratory and office space
    in U.S. educational and research centers, in addition to three properties
    under construction expected to comprise approximately 935,000 square feet
    of rentable space upon completion, as well as other pipeline projects.
  oSubsequent to the end of the quarter:

       oCompleted a follow-on public offering of common stock, raising
         approximately $354.1 million in net proceeds.
       oEntered into a build-to-suit transaction to construct two new
         buildings pre-leased to Regeneron Pharmaceuticals for a 15 year term
         totaling approximately 297,000 square feet at The Landmark at
         Eastview in Tarrytown, New York, and extended Regeneron's lease for
         approximately 360,500 square feet at The Landmark into 2029.

"We continue to enjoy tremendous success on the leasing and operating fronts
in the first quarter of 2013, as well as subsequent to quarter-end, putting us
on track to exceed our leasing plan again in 2013," said Alan D. Gold, BioMed
Realty's Chairman and Chief Executive Officer. "That strong performance
continues to drive top-line and bottom-line results, including a double-digit
increase in core FFO per diluted share in the first quarter."

Mr. Gold continued, "Importantly, we continue to invest in our business to
provide future growth. In the first quarter and looking forward, we continue
to identify and execute on attractive new investment opportunities that we
believe can provide very compelling risk-adjusted returns. Most notably, we
look forward to joining forces with Wexford Science & Technology, which brings
a high-quality operating portfolio that is well-leased and anchored by
top-tier research institutions, as well as an attractive development pipeline
that we believe will accelerate our growth in 2014 and beyond."

Portfolio Update

During the quarter ended March 31,2013, the company executed 29 leasing
transactions representing approximately 583,700 square feet, comprised of 16
new leases totaling approximately 419,700 square feet and 13 lease renewals
totaling approximately 164,000 square feet.

During the quarter the company acquired two properties:

  oWoodside Technology Park in Redwood City, California for $87.0 million,
    excluding transaction costs. The property is comprised of three buildings
    with an aggregate of approximately 256,000 square feet of laboratory and
    office space, which was 100% leased to five tenants at acquisition; and
  oThe Campus at Lincoln Centre in Foster City, California from Life
    Technologies Corporation for $37.0 million, excluding transaction costs.
    The company intends to redevelop the 19-acre site, which currently
    comprises seven buildings aggregating approximately 280,000 square feet.

Same property net operating income on a cash basis increased for the period by
3.5% and the same property leased percentage increased by 310 basis points for
the quarter compared to the same period in 2012, primarily as a result of
sustained leasing success and contractual rent escalations.

The total operating portfolio was approximately 91.7% leased on a
weighted-average basis as of March 31,2013. At March 31,2013, the company's
total portfolio comprised approximately 13.2 million rentable square feet with
an additional 4.4 million square feet of development potential.

Wexford Science & Technology

During the quarter, the company entered into a definitive agreement to merge
with Wexford Science & Technology, LLC, a private real estate investment and
development company that owns and develops institutional quality life science
real estate for academic and medical research organizations. The aggregate
consideration for Wexford Science & Technology is approximately $640 million,
excluding transaction costs and subject to adjustment based on working capital
levels and construction and development costs incurred prior to closing,
comprising:

  oApproximately $551 million for Wexford Science & Technology's operating
    portfolio, which includes approximately 1.6 million rentable square feet
    of newly developed research facilities located on or immediately adjacent
    to leading academic, medical system and research institution campuses,
    including University of Pennsylvania Health System, Washington University
    in St. Louis, Wake Forest University, the University of Maryland, the
    University of Miami, Old Dominion University, the Illinois Institute of
    Technology and Penn State University. Wexford's operating portfolio was
    approximately 86% leased at year-end 2012, with an estimated 66% of
    annualized base rents generated from academic and medical institutions and
    A-rated life science companies.
  oApproximately $89 million for approximately 935,000 square feet of
    rentable space in three projects currently under development that are,
    collectively, approximately 68% pre-leased, and anchored by the University
    of Pennsylvania Health System, Wake Forest University and Washington
    University in St. Louis. Wexford Science & Technology also owns parking
    garages in Philadelphia and Baltimore with 419 and 638 stalls,
    respectively, that support Wexford Science & Technology's life science
    developments, and owns additional land parcels that can support an
    estimated 300,000 square feet in additional development potential.

The company's merger with Wexford Science & Technology is subject to the
receipt of lender, ground lessor and other third-party consents, waivers of
rights of first offer and customary closing conditions, and the company can
offer no assurances that the merger will close on the terms described herein,
or at all.

First Quarter 2013 Financial Results

Total revenues for the first quarter were approximately $160.5 million,
compared to approximately $120.0 million for the same period in 2012, an
increase of 33.7% and the highest in the company's history. Total revenues
include approximately $28.8 million associated with the termination of a lease
with Elan Corporation, for which the company received a termination fee of
$46.5 million in the second quarter. Net of the related accelerated
amortization of accrued straight-line rents and lease intangibles, the
termination fee is expected to increase FFO by approximately $35.2 million, of
which approximately $21.6 million ($0.12 per diluted share) was recognized
during the three months ended March 31, 2013. The balance is expected to be
recognized in the second quarter of 2013.

Rental revenues for the first quarter were approximately $103.0 million,
compared to approximately $91.5 million for the same period in 2012, an
increase of 12.6%. 

As a result of the redemption in full of the company's Series A preferred
stock in the first quarter, the company was required to expense the Series A
preferred stock initial offering costs, which resulted in a redemption charge
of approximately $6.5 million ($0.037 per diluted share). The company also
recorded a non-cash expense of $2.8 million ($0.016 per diluted share) related
to an investment in a privately-held life science company.

CFFO for the first quarter was $0.42 per diluted share, compared to $0.30 per
diluted share for the same period in 2012, an increase of 40.0%. FFO per
share, calculated in accordance with standards established by NAREIT, was
$0.41 per diluted share, as compared to $0.30 per diluted share in the first
quarter of 2012, an increase of 36.7%. AFFO for the quarter was $0.47 per
diluted share, as compared to $0.30 per diluted share in the first quarter of
2012, an increase of 56.7%.

The company reported net income available to common stockholders for the
quarter of approximately $8.4 million, or $0.05 per diluted share.

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.

Financing Activity

In February 2013, the company raised net proceeds of approximately $287.0
million through the follow-on public offering of 14,605,000 shares of common
stock.

In March 2013, the company completed the redemption of all 7,920,000 shares of
its Series A preferred stock at $25.30217 per share, equal to the original
issuance price of $25.00 per share, plus accrued and unpaid dividends up to
the redemption date.

In April 2013, the company completed a follow-on public offering of 17,250,000
shares raising net proceeds of approximately $354.1 million. The company
expects to use the net proceeds of the offering to fund a portion of the
purchase price of the pending merger with Wexford Science & Technology, to
repay a portion of the outstanding indebtedness under its unsecured line of
credit and for other general corporate and working capital purposes.

Commenting on the recent capital markets activity, Greg Lubushkin, Chief
Financial Officer of BioMed Realty, said, "Our growth in the first quarter and
into 2013 is directly attributable to our ongoing leasing success, the ability
to leverage our expertise and our relationships, and our strong, flexible
balance sheet. The two follow-on equity offerings completed in 2013, which
raised in aggregate approximately $641 million in net proceeds, exemplify our
prudent approach to managing our leverage that has enabled us to capture
attractive growth opportunities which we believe offer superior risk-adjusted
returns, such as the Wexford investment. As a result of this activity, we
continue to operate our business with very healthy liquidity and one of the
strongest credit profiles in the industry."

Quarterly and Annual Distributions

BioMed Realty Trust's board of directors previously declared a first quarter
2013 dividend of $0.235 per share of common stock. The first quarter common
share dividend is equivalent to an annualized dividend of $0.94 per common
share.

Earnings Guidance

The company's updated 2013 guidance for net income per diluted share, FFO per
diluted share and CFFO per diluted share are set forth and reconciled below.
Projected net income per diluted share, FFO per diluted share and CFFO per
diluted share are based upon estimated, weighted-average diluted common shares
outstanding of approximately196.0 million.

                                                    2013
                                                    (Low - High)
Projected net income per diluted share available
to common stockholders                            $0.08 – $0.16
 Add:
 Real estate depreciation and amortization         $1.36
 Noncontrolling interests in operating partnership $0.00
 Less:
 Net effect of assumed conversion of exchangeable  ($0.03)
 senior notes due 2030
Projected FFO per diluted share                     $1.41 – $1.49
 Add:
 Acquisition costs                                 $0.03
Projected CFFO per diluted share                    $1.44 – $1.52

These estimates include the following items:

  oFull year impact of the Elan lease termination fee income (approximately
    $0.19 per diluted share);
  oCharge taken in the first quarter relating to the March 2013 redemption of
    Series A preferred stock (approximately $0.04 per diluted share);
  oNon-cash expense related to an investment in a privately-held life science
    company taken in the first quarter (approximately $0.02 per diluted
    share);
  oImpact of pre-funding of the March 2013 redemption of the Series A
    preferred stock through the common stock offering completed in February
    2013 (approximately $0.01 per diluted share); and
  oImpact of pre-funding the pending close of the merger with Wexford Science
    & Technology through the common stock offering completed in April 2013
    (approximately $0.02 per diluted share).

On a pro forma basis, the range of projected CFFO per diluted share would be
from $1.34 to $1.42 after considering these adjustments. The company's
estimates of CFFO per diluted share also include the following items:

  oAssumed issuance of $250 million in unsecured debt during the second half
    of 2013 (approximately $0.01 per diluted share); and
  oImpact of difference in rents at the company's Science Center at Oyster
    Point between the terminated Elan Corporation lease and the new Life
    Technologies lease (approximately $0.01 per diluted share).

The company's 2013 estimates also include previously announced acquisitions
and developments, including the pending merger with Wexford Science &
Technology. The company continues to target new investment opportunities,
including acquisitions and new development projects; however, the company's
2013 estimates do not reflect the impact of any future new investments as the
impact of such investments may vary significantly based on the nature of these
investments, timing and other factors. 

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 9:00 a.m. Pacific
Time (12:00 p.m. Eastern Time) on Thursday, May 2, 2013 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 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 34754811. 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 12:00 p.m. Pacific Time on
Thursday, May 2, 2013 until midnight Pacific Time on Tuesday, May 7, 2013 by
calling (888) 843-7419 (domestic) or (630) 652-3042 (international) and using
access code 34754811#.

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 13.5
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.



BIOMED REALTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
                                                  March 31,     December 31,
                                                  2013          2012
                                                  (Unaudited)
ASSETS
Investments in real estate, net                   $ 4,424,867   $  4,319,716
Investments in unconsolidated partnerships        32,118        32,367
Cash and cash equivalents                         18,552        19,976
Accounts receivable, net                          35,888        4,507
Accrued straight-line rents, net                  155,591       152,096
Deferred leasing costs, net                       167,648       172,363
Other assets                                      164,968       133,454

                                                  $ 4,999,632   $  4,834,479
Total assets
LIABILITIES AND EQUITY
Mortgage notes payable, net                       $ 569,390     $  571,652
Exchangeable senior notes                         180,000       180,000
Unsecured senior notes, net                       894,397       894,177
Unsecured senior term loan                        395,486       405,456
Unsecured line of credit                          215,000       118,000
Accounts payable, accrued expenses and other      199,731       180,653
liabilities
Total liabilities                                 2,454,004     2,349,938


Equity:
Stockholders' equity:
Preferred stock, $.01 par value, 15,000,000
shares authorized: 7.375% Series A cumulative
redeemable preferred stock, no shares issued and
outstanding as of March 31, 2013; and 7,920,000   —             191,469
shares issued and outstanding as of December 31,
2012, $198,000 liquidation preference ($25.00 per
share)
Common stock, $.01 par value, 250,000,000 shares
authorized, 169,054,707 shares issued and
outstanding at March 31, 2013; and 200,000,000    1,691         1,543
shares authorized, 154,327,818 shares issued and
outstanding at December 31, 2012

                                                  3,065,589     2,781,849
Additional paid-in capital

                                                  (55,480)      (54,725)
Accumulated other comprehensive loss, net

                                                  (474,619)     (443,280)
Dividends in excess of earnings

                                                  2,537,181     2,476,856
Total stockholders' equity

                                                  8,447         7,685
Noncontrolling interests

                                                  2,545,628     2,484,541
Total equity

                                                  $ 4,999,632   $  4,834,479
Total liabilities and equity





BIOMED REALTY TRUST, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share data)
(Unaudited)
                                                For the Three Months Ended
                                                March 31,
                                                2013           2012
Revenues:
Rental                                          $   102,956    $  91,475
Tenant recoveries                               32,637         28,453
Other revenue                                   24,857         84
Total revenues                                  160,450        120,012
Expenses:
Rental operations                               40,553         36,729
Depreciation and amortization                   60,764         44,934
General and administrative                      10,028         8,614
Acquisition-related expenses                    2,236          633
Total expenses                                  113,581        90,910
Income from operations                          46,869         29,102
Equity in net loss of unconsolidated            (319)          (355)
partnerships
Interest expense, net                           (25,902)       (22,219)
Other (expense) / income                        (3,190)        174
Income from continuing operations               17,458         6,702
 Loss from discontinued operations          —              (4,420)
 Net income                                  17,458         2,282
Net (income) / loss attributable to             (146)          30
noncontrolling interests
Net income attributable to the company          17,312         2,312
Preferred stock dividends                       (2,393)        (3,651)
Cost on redemption of preferred stock           (6,531)        —
Net income / (loss) available to common         $   8,388      $  (1,339)
stockholders
Income from continuing operations per share
available to common stockholders:
Basic and diluted earnings per share            $   0.05       $  0.02
Loss from discontinued operations per share

available to common stockholders:
Basic and diluted earnings per share            $   —          $  (0.03)
Net income / (loss) per share available to
common stockholders:
Basic and diluted earnings per share            $   0.05       $  (0.01)
Weighted-average common shares outstanding:
Basic                                           159,692,470    152,659,258
Diluted                                         162,713,677    155,625,204



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 months ended March 31, 2013 and
2012 was as follows:
                                Three Months Ended
                                March 31,
                                2013                     2012
Net income / (loss) available  $      8,388             $    (1,339)
to common stockholders


Adjustments:
Impairment loss                 —                        4,552
Noncontrolling interests in     154                      (26)
operating partnership
Depreciation and amortization – 369                      323
unconsolidated partnerships
Depreciation and amortization – 60,764                   44,934
consolidated entities
Depreciation and amortization – —                        92
discontinued operations
Depreciation and amortization –
allocable to noncontrolling     (30)                     (27)
interest of consolidated joint
ventures
FFO available to common shares         69,645                 48,509
and units – basic
 Interest expense on               1,688                  1,688
exchangeable senior notes
FFO available to common shares         71,333                 50,197
and units – diluted
 Acquisition-related               2,236                  633
expenses
CFFO available to common shares $      73,569            $    50,830
and units – diluted
FFO per share – diluted         $      0.41              $    0.30
CFFO per share – diluted        $      0.42              $    0.30
Weighted-average common shares
and units outstanding – diluted 174,371,376              167,236,142
(1)



Our AFFO available to common shares and partnership and LTIP units and a
reconciliation of CFFO to AFFO for the three months ended March 31,2013 and
2012 was as follows:



                            Three Months Ended
                            March 31,
                            2013                        2012
CFFO - diluted              $       73,569              $      50,830
Adjustments:
Recurring capital
expenditures and second     (9,795)                     (4,629)
generation tenant
improvements
Leasing commissions         (1,580)                     (1,419)
Non-cash revenue            3,243                       18
adjustments
Non-cash debt adjustments   5,924                       2,540
Non-cash equity             3,011                       2,689
compensation
Cost on redemption of       6,531                       —
preferred stock
Depreciation included in
general and administrative  481                         442
expenses
Share of non-cash
unconsolidated partnership  40                          1
adjustments
AFFO available to common    $       81,424              $      50,472
shares and units
AFFO per share – diluted    $       0.47                $      0.30
Weighted-average common
shares and units
outstanding -               174,371,376                 167,236,142

diluted (1)
(1) The three months ended March 31, 2013 and 2012 include 10,259,496 and
10,127,232 shares of common stock, respectively, potentially issuable
pursuant to the exchange feature of the exchangeable senior notes due 2030
based on the "if converted" method. The three months ended March 31, 2013 and
2012 include 1,398,203 and 1,483,706 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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