BioMed Realty Trust Reports Second Quarter 2013 Financial Results

      BioMed Realty Trust Reports Second Quarter 2013 Financial Results

Second Quarter Leasing Volume of 898,000 Square Feet - Largest in Company
History

PR Newswire

SAN DIEGO, Aug. 6, 2013

SAN DIEGO, Aug. 6,2013 /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 second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  oExecuted 20 leasing transactions during the quarter representing
    approximately 898,000 square feet, contributing to an operating portfolio
    leased percentage on a weighted-average basis of approximately 90.8% at
    quarter end, and comprised of:

       oEight new leases totaling approximately 422,800 square feet,
         highlighted by:

            oa pre-leased build-to-suit transaction with Regeneron
              Pharmaceuticals, to construct two new buildings with an initial
              15-year lease term totaling approximately 297,000 square feet at
              The Landmark at Eastview in Tarrytown, New York;
            oa lease expansion with a private biotechnology company for
              approximately 32,900 square feet at the company's Pacific
              Research Center (PRC) in Newark, California; and
            oa new lease with Inovio Pharmaceuticals for 26,500 square feet
              at the company's Wateridge Circle property in San Diego,
              California.

       oTwelvelease renewals totaling approximately 475,300 square feet,
         highlighted by:

            oa lease extension with Regeneron Pharmaceuticals for
              approximately 360,500 square feet at The Landmark at Eastview
              which now extends to July 2029; and
            oa lease expansion and extension with MedImmune, a subsidiary of
              AstraZeneca, for approximately 24,400 square feet at the
              company's Bridgeview Technology Park in Hayward, California.

  oSame property net operating income on a cash basis for the second quarter
    increased 4.9% versus the same period in 2012, excluding the 180 and 200
    Oyster Point properties, which were leased to Life Technologies in the
    second quarter and for which the company received a $46.5 million lease
    termination payment from Elan Corporation in the second quarter of 2013.
  oCore funds from operations (CFFO) was $0.41 per diluted share, as compared
    to $0.32 per diluted share in the second quarter of 2012. Funds from
    operations (FFO) calculated in accordance with standards established by
    NAREIT was $0.40 per diluted share.
  oAdjusted funds from operations (AFFO) for the quarter was $0.37 per
    diluted share, as compared to $0.33 per diluted share in the second
    quarter of 2012.
  oRecognition of the remaining portion of the previously announced Elan
    Corporation lease termination fee increased FFO and CFFO for the second
    quarter by $13.6 million, or $0.07 per diluted share, and AFFO by $17.7
    million, or $0.09 per diluted share.
  oGenerated total revenues for the second quarter of approximately $159.6
    million, up from approximately $124.8 million in the second quarter of
    2012. Rental revenues for the quarter increased to approximately $108.1
    million from approximately $95.7 million in the same period in 2012 and
    were the highest in the company's history.
  oReported net income available to common stockholders for the quarter of
    approximately $14.8 million, or $0.08 per diluted share.
  oCompleted the previously announced merger with Wexford Science &
    Technology, LLC, owner and developer of institutional quality life science
    real estate for academic and medical research organizations. The aggregate
    consideration for Wexford Science & Technology was approximately $669.1
    million, with a portion of the purchase price paid through the issuance of
    5.9 million shares of common stock and operating partnership units.
  oAcquired 320 Charles Street in Cambridge, Massachusetts for approximately
    $49.5 million, with a portion of the purchase price paid through the
    issuance of approximately 2.0 million operating partnership units. The
    approximately 99,500 square foot laboratory and office building is 100%
    leased.
  oCompleted a follow-on public offering of common stock, raising
    approximately $354.1 million in net proceeds.

Commenting on the second quarter results, BioMed Realty's Chairman and Chief
Executive Officer, Alan D. Gold, remarked, "Our exceptional leasing
performance in the second quarter of 898,000 square feet pushed our leasing
volume well ahead of our full year target. Our sustained leasing success
continues to provide the catalyst that drives our operating and financial
results, with robust year-over-year increases in revenues and cash flows for
the second quarter. Our team's core competencies in singularly focusing on
serving the needs of and building valuable relationships with the life science
industry are the foundation of our superior top-line and bottom-line results
and enterprise growth, which was enhanced during the second quarter with the
addition of the Wexford Science & Technology team and platform. Together, we
leverage the strongest team in the industry and continue to acquire, develop
and operate the industry's highest quality portfolio, attracting and
supporting top-tier tenants to drive our growth over the balance of 2013 and
beyond."

Portfolio Update

The company executed20 leasing transactions in the quarter ended June 30,
2013, representing approximately 898,000 square feet, comprised ofeight new
leases totaling approximately 422,800 square feet andtwelve lease renewals
totaling approximately 475,300 square feet.

During the second quarter, the company completed its merger with Wexford
Science & Technology, owner and developer of institutional quality life
science real estate for academic and medical research organizations. The
aggregate consideration for Wexford Science & Technology was approximately
$669.1 million, which reflects the estimated initial consideration of $640
million adjusted for additional construction and development costs incurred
from March 26, 2013, the date of the merger agreement, to the closing date of
May 31, 2013, and the value of common stock and operating partnership units
issued by BioMed Realty as consideration.

In addition, the company acquired 320 Charles Street in Cambridge,
Massachusetts during the quarter for $49.5 million, excluding transaction
costs, comprising approximately 99,500 square feet of laboratory and office
space which was 100% leased to The Whitehead Institute for BioMedical
Research. In connection with the acquisition, the company issued approximately
2.0 million operating partnership units to the seller, with the balance of the
purchase price paid in cash.

Kent Griffin, President and Chief Operating Officer of BioMed Realty, noted,
"We are very pleased that the merger with Wexford Science & Technology was
completed ahead of schedule, largely a function of the common commitment and
dedication of our combined teams. The expedited and seamless closing gives us
a head start toward growing and maximizing the value of our combined operating
portfolios and expanded development pipeline."

Same property net operating income on a cash basis increased for the period by
2.5%, primarily as a result of sustained leasing success and contractual rent
escalations, partially offset by the Elan lease termination at the 180 and 200
Oyster Point properties in South San Francisco. The company received a $46.5
million termination payment from Elan in the second quarter of 2013 which is
not reflected in these same property operating results. Excluding these two
properties, which were concurrently leased to Life Technologies, the same
property net operating income on a cash basis increasedby 4.9% for the second
quarter of 2013 as compared to the same period last year.

The total operating portfolio was approximately 90.8% leased on a
weighted-average basis as of June 30,2013. At June 30,2013, the company's
total portfolio comprised approximately 16.3 million rentable square feet with
an additional 4.3 million square feet of development potential.

Second Quarter 2013 Financial Results

Total revenues for the second quarter were approximately $159.6 million,
compared to approximately $124.8 million for the same period in 2012, an
increase of 27.9%. Total revenues include approximately $17.7 million
associated with the Elan lease termination, 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 increased FFO by approximately $35.2 million, of which
approximately $13.6 million ($0.07 per diluted share) was recognized in the
second quarter. Rental revenues for the second quarter were approximately
$108.1 million, compared to approximately $95.7 million for the same period in
2012, an increase of 13.0%, and the highest in the company's history. 

CFFO for the second quarter was $0.41 per diluted share, compared to $0.32 per
diluted share for the same period in 2012. FFO per share, calculated in
accordance with standards established by NAREIT, was $0.40 per diluted share
for the quarter. AFFO for the quarter was $0.37 per diluted share, as
compared to $0.33 per diluted share in the second quarter of 2012.

The company reported net income available to common stockholders for the
quarter of approximately $14.8 million, or $0.08 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

During the second quarter, the company completed a follow-on public offering
of 17,250,000 shares of common stock, which included the full exercise of the
underwriters' option to purchase additional shares, raising net proceeds of
approximately $354.1 million. The company used the net proceeds of the
offering to fund a portion of the purchase price of the 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.

"In addition to the tremendous operating success in the second quarter, we
stayed true to our proven, sound funding strategy of matching two long-term
value creation opportunities – the merger with Wexford Science & Technology
and the acquisition of 320 Charles – with long-term capital," said Greg N.
Lubushkin, Chief Financial Officer of BioMed Realty. "Both of these
investments were substantially funded with common stock and operating
partnership units, thereby ensuring that we remain properly capitalized in
order to take full advantage of our fully integrated platform and position
ourselves to capture future opportunities."

Quarterly and Annual Distributions

BioMed Realty Trust's board of directors previously declared a second quarter
2013 dividend of $0.235 per share of common stock, which 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 approximately198.0 million.

                                                                       2013
                                                                       (Low -
                                                                       High)
 Projected net income per diluted share available
 to common                                                          $0.13 –
stockholders              $0.17
 Add:
 Real estate depreciation and amortization        $1.34
 Noncontrolling interests in operating partnership        ($0.01)
 Less:
 Net effect of assumed conversion of exchangeable             ($0.03)
 senior notes due 2030 
Projected FFO per diluted share        $1.43 –
                                                                       $1.47
 Add:
 Acquisition                                                      $0.03
costs
 Projected CFFO per diluted share      $1.46 –
                                                                       $1.50

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 10:00 a.m. Pacific
Time (1:00 p.m. Eastern Time) on Wednesday, August 7, 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 (800) 447-0521 (domestic) or (847)
413-3238 (international) with call ID number 35393753. 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
Wednesday, August 7, 2013 until midnight Pacific Time on Monday, August 12,
2013 by calling (888) 843-7419 (domestic) or (630) 652-3042 (international)
and using access code 35393753#.

About BioMed Realty

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 16.3
million rentable square feet (including the properties acquired in its recent
merger with Wexford Science & Technology). The company's properties are
located predominantly in the major U.S. life science markets of Boston, San
Francisco, Maryland, San Diego and New York/New Jersey, 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 tax credits, grants and other subsidies to
fund development activities; 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)
                                                     June 30,    December 31,
                                                     2013        2012
                                                     (Unaudited)
ASSETS
Investments in real estate, net                      $5,131,507  $4,319,716
Investments in unconsolidated partnerships           32,250      32,367
Cash and cash equivalents                            27,666      19,976
Accounts receivable, net                             6,274       4,507
Accrued straight-line rents, net                     163,287     152,096
Deferred leasing costs, net                          213,567     172,363
Other assets                                         289,232     133,454
 Total assets                                    $5,863,783  $4,834,479
LIABILITIES AND EQUITY
Mortgage notes payable, net                          $821,582    $571,652
Exchangeable senior notes                            180,000     180,000
Unsecured senior notes, net                          894,622     894,177
Unsecured senior term loan                           395,676     405,456
Unsecured line of credit                             240,000     118,000
Accounts payable, accrued expenses and other         281,780     180,653
liabilities
 Total liabilities                                2,813,660   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     -           191,469
outstanding at June 30, 2013; and 7,920,000 shares
issued and outstanding at December 31, 2012,
$198,000 liquidation preference ($25.00 per share)
 Common stock, $.01 par value, 250,000,000
shares authorized, 191,948,111 shares issued and
outstanding at June 30, 2013; and 200,000,000 shares 1,919       1,543
authorized, 154,327,818 shares issued and
outstanding at December 31, 2012
 Additional paid-in capital                      3,549,082   2,781,849
 Accumulated other comprehensive loss, net       (43,094)    (54,725)
 Dividends in excess of earnings                 (504,921)   (443,280)
  Total stockholders' equity                   3,002,986   2,476,856
Noncontrolling interests                             47,137      7,685
 Total equity                                  3,050,123   2,484,541
 Total liabilities and equity                  $5,863,783  $4,834,479





BIOMED REALTY TRUST, INC.


CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data)

(Unaudited)
                           For the Three Months Ended For the Six Months Ended
                           June 30,                   June 30,
                           2013          2012         2013         2012
Revenues:
 Rental                  $108,092      $95,708      $211,048     $187,183
 Tenant recoveries       32,494        28,939       65,131       57,390
 Other revenue           19,053        201          43,911       285
 Total revenues       159,639       124,848      320,090      244,858
Expenses:
 Rental operations      41,941        37,044       82,494       73,773
 Depreciation and       63,557        47,575       124,320      92,508
amortization
 General and            10,396        8,576        20,424       17,191
administrative
 Acquisition-related    2,120         12,245       4,357        12,879
expenses
 Total expenses      118,014       105,440      231,595      196,351
Income from          41,625        19,408       88,495       48,507
operations
 Equity in net loss of
unconsolidated             (267)         (317)        (585)        (671)
partnerships
 Interest expense, net  (26,119)      (23,825)     (52,021)     (46,044)
 Other expense          (202)         (549)        (3,392)      (375)
Income / (loss)   15,037        (5,283)      32,497       1,417
from continuing operations
 Income / (loss)
from discontinued          -             49           -            (4,370)
operations
 Net income /      15,037        (5,234)      32,497       (2,953)
(loss)
 Net (income) / loss
attributable to            (234)         172          (379)        201
noncontrolling interests
 Net income /
(loss) attributable to the 14,803        (5,062)      32,118       (2,752)
Company
 Preferred stock     -             (3,651)      (2,393)      (7,301)
dividends
 Cost on redemption  -             -            (6,531)      -
of preferred stock
Net income / (loss)
available to common        $14,803       $(8,713)     $23,194      $(10,053)
stockholders
Income / (loss) from
continuing operations per
share available to common
stockholders:
 Basic and diluted      $0.08         $(0.06)      $0.13        $(0.04)
earnings per share
Loss from discontinued
operations per share
available to common
stockholders:
 Basic and diluted      $-            $-           $-           $(0.03)
earnings per share
Net income / (loss) per
share available to common
stockholders:
Basic and diluted      $0.08         $(0.06)      $0.13        $(0.07)
earnings per share
Weighted-average common
shares outstanding:
 Basic                  186,735,157   152,775,422  173,288,517  152,715,715
 Diluted                190,151,166   152,775,422  176,508,215  152,715,715





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 six months ended June 30,
2013 and 2012 was as follows:


                           Three Months Ended        Six Months Ended
                           June 30,                  June 30,
                           2013         2012         2013         2012
Net income / (loss)
available to
the common stockholders   $14,803      $(8,713)     $23,194      $(10,053)
Adjustments:
 Impairment loss        -            -            -            4,552
 Noncontrolling
interests in operating     263          (166)        416          (192)
partnership
 Depreciation and
amortization–             367          323          736          645
unconsolidated
partnerships
 Depreciation and
amortization–             63,557       47,575       124,320      92,508
consolidated entities
 Depreciation and
amortization–             -            -            -            92
discontinued operations
 Depreciation and
amortization – allocable
to noncontrolling interest (164)        (27)         (194)        (55)
of consolidated joint

ventures
FFO available to common
shares                     $78,826      $38,992      $148,472     $87,497

and units – basic
 Interest expense on    1,688        1,688        3,375        3,375
exchangeable senior notes
FFO available to common
                           $80,514      $40,680      $151,847     $90,872
shares and units – diluted
 Acquisition-related    2,120        12,245       4,357        12,879
expenses
CFFO available to common
                           $82,634      $52,925      $156,204     $103,751
shares and units – diluted
FFO per share – diluted    $0.40        $0.24        $0.81        $0.54
CFFO per share – diluted   $0.41        $0.32        $0.83        $0.62
Weighted-average common
shares and units           201,716,873  167,238,695  188,119,664  167,237,418

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 six months ended
June30,2013 and 2012 was as follows:


                            Three Months Ended        Six Months Ended
                            June 30,                  June 30,
                            2013         2012         2013         2012
CFFO available to common    $82,634      52,925       $156,204     $103,751
shares and units – diluted
Adjustments:
 Recurring capital
expenditures and second     (12,599)     (1,716)      (22,394)     (6,345)
generation tenant
improvements
 Leasing commissions     (1,985)      (1,335)      (3,565)      (2,754)
 Non-cash revenue        (821)        (1,422)      2,422        (1,404)
adjustments
 Non-cash adjustment for -            545          2,825        545
securities
 Non-cash debt           3,059        2,969        6,158        5,509
adjustments
 Non-cash equity         3,067        2,887        6,078        5,576
compensation
 Cost on redemption of   -            -            6,531        -
preferred stock
 Depreciation included
in general and              565          455          1,046        897
administrative expenses
 Share of non-cash
unconsolidated partnership  31           26           71           27
adjustments
AFFO available to common    $73,951      55,334       $155,376     $105,802
shares and units
AFFO per share – diluted    $0.37        0.33         $0.83        $0.63
Weighted-average common
shares and units
outstanding -
diluted (1)                 201,716,873  167,238,695  188,119,664  167,237,418

    The three and six months ended June 30,2013 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 six months ended June 30, 2012 include 10,127,232 shares of
    common stock potentially issuable pursuant to the exchange feature of the
    exchangeable senior notes due 2030 based on the "if converted" method.
(1) The three months ended June 30,2013 and 2012 include 1,306,211 and
    1,388,901 shares of unvested restricted stock, respectively, which are
    considered anti-dilutive for purposes of calculating diluted earnings per
    share. The six months ended June 30, 2013 and 2012 include 1,351,953 and
    1,437,928 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, core funds from operations, or CFFO,
and adjusted funds from operations, or AFFO, available to common shares and
partnership and LTIP units because we consider them 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 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. As defined by NAREIT, FFO represents net income (computed in
accordance with GAAP), excluding gains (or losses) from sales of 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 subtracting from CFFO: (a) non-cash revenues and expenses, (b)
recurring capital expenditures and second generation tenant improvements, and
(c) leasing commissions.

Our computation of FFO, CFFO and AFFO may differ from the methodology 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 cash flow 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 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. 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, 858.207.5859,
richard.howe@biomedrealty.com
 
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