BioMed Realty Trust Reports Fourth Quarter And Full-Year 2013 Financial Results

   BioMed Realty Trust Reports Fourth Quarter And Full-Year 2013 Financial
                                   Results

Fourth Quarter Leasing Volume of 441,800 SF; Same Property Cash NOI Up 6.6%
Year-over-Year

PR Newswire

SAN DIEGO, Feb. 5, 2014

SAN DIEGO, Feb. 5,2014 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR),
the leading real estate company focusing on life sciences, today announced
financial results for the fourth quarter and full-year ended December 31,
2013.

Fourth Quarter 2013 Highlights

  oExecuted 34 leasing transactions during the quarter representing
    approximately 441,800 square feet, contributing to an operating portfolio
    leased percentage on a weighted-average basis of approximately 91.4% at
    quarter end, and comprised of:

       o27 new leases totaling approximately 352,500 square feet, highlighted
         by:

            +a new pre-lease with The Broad Institute, Inc. for approximately
              99,500 square feet at 320 Charles Street in Cambridge,
              Massachusetts;
            +a new lease with Moderna Therapeutics, Inc. for approximately
              44,000 square feet at 320 Bent Street in Cambridge,
              Massachusetts; and
            +a new lease with Asterias Biotherapeutics, Inc. for 44,000
              square feet at Dumbarton Circle in Fremont, California.

       oSeven lease renewals totaling approximately 89,300 square feet.
       oApproximately 186,700 square feet of positive net absorption during
         the fourth quarter.

  oSame property net operating income on a cash basis for the fourth quarter
    increased 6.6% as compared to the same period in 2012.
  oCore funds from operations (CFFO) was $0.34 per diluted share. Funds from
    operations (FFO) calculated in accordance with standards established by
    NAREIT was also $0.34 per diluted share. Adjusted funds from operations
    (AFFO) for the quarter was $0.31 per diluted share.
  oGenerated total revenues for the fourth quarter of approximately $158.0
    million, up from approximately $138.8 million in the fourth quarter of
    2012. Rental revenues for the quarter increased to approximately $118.0
    million from approximately $104.0 million in the same period in 2012 and
    were the highest in the company's and the industry's history.
  oAcquired additional development potential of 300,000 square feet and
    274,000 square feet of pre-development, which includes the Chesterfield
    property in Durham, North Carolina.
  oReported net income available to common stockholders for the quarter of
    approximately $10.3 million, or $0.05 per diluted share.

"Our fourth quarter operating and financial results capped an extraordinary
2013 for BioMed Realty," said Alan D. Gold, Chairman and Chief Executive
Officer of BioMed Realty. "With strong leasing during the quarter coming from
our largest markets on both coasts, we continue to reap the benefits of
building lasting relationships with the key life science industry
participants, who have proven their ability, time and again, to raise capital
and push innovation. We succeeded in 2013 by doing what we said we would,
namely being true to our proven business model, leveraging our tested
experience and unmatched expertise throughout our organization to drive value
and returns for our stockholders. We enter 2014 with the same commitment to
those principles which have built BioMed Realty into the fastest growing and,
more importantly, highest-quality life science real estate portfolio and
organization."

2013 Highlights

During the full year 2013, the company:

  oExecuted 120 leasing transactions representing approximately 2.3 million
    square feet, the highest gross leasing volume in the company's history,
    including:

       o75 new leases totaling approximately 1.4 million square feet.
       o45 leases amended to extend their terms totaling approximately
         839,000 square feet.
       oIncluding leasing activity in the fourth quarter of 2012, the company
         executed approximately 2.9 million square feet of gross leasing
         transactions, representing approximately 193% of its previously
         disclosed five-quarter goal of 1.5 million square feet.
       oAcquired Wexford Science & Technology, LLC, owner and developer of
         institutional quality life science real estate for academic and
         medical research organizations, including an operating portfolio of
         approximately 1.6 million rentable square feet, which was 86% leased
         at the merger announcement and 90.5% leased at year-end, and 935,000
         square feet of rentable square feet that was under construction and
         collectively 68% pre-leased at merger announcement, of which
         approximately 660,000 rentable square feet was placed into service in
         December 2013.

  oAcquired properties comprising approximately 2.9 million square feet, for
    a total investment of approximately $856.0 million, including the
    properties of Wexford Science & Technology, increasing the company's gross
    assets year-over-year by 24.3% to $6.8 billion at year-end.
  oIncreased CFFO for the year by 13.7% to $1.49 per diluted share compared
    to $1.31 per diluted share in 2012. FFO, calculated in accordance with
    standards established by NAREIT, was $1.47 per diluted share.
  oIncreased AFFO to $1.42 per diluted share for the year, as compared to
    $1.29 per diluted share in 2012, an increase of 10.1% per diluted share.
  oCompleted two follow-on public offerings of common stock in February and
    April, raising approximately $641.1 million in aggregate net proceeds.
  oAmended and restated the company's senior unsecured credit facility to
    increase the revolving capacity under the credit facility to $900 million,
    add a $350 million term loan, reduce the fully-drawn borrowing cost by 35
    basis points and extend the maturity date to 2018.
  oRedeemed all 7,920,000 outstanding shares of its 7.375% Series A
    Cumulative Redeemable Preferred Stock for approximately $198.0 million.
  oIncreased total revenues 23.0% to $637.3 million from $518.2 million in
    2012 and rental revenues 13.6% to $446.0 million from $392.6 million in
    2012.
  oReported net income available to common stockholders of $37.7 million, or
    $0.20 per diluted share. 
  oContinued to enhance the breadth and depth of the company's organization
    with the following additions and promotions:

       oAppointed Daniel M. Bradbury, former Chief Executive Officer of
         Amylin Pharmaceuticals, to the Board of Directors;
       oAppointed Dr. William R. Brody, President of the Salk Institute for
         Biological Studies, to the Board of Directors;
       oJames R. Berens joined as President of Wexford;
       oDaniel C. Cramer joined as Senior Vice President, Development of
         Wexford;
       oSandy N. Weeks joined as Senior Vice President and General Counsel of
         Wexford;
       oDenis J. Sullivan, Jr. was promoted to Vice President, Acquisitions;
         and
       oJames W. Cullinan joined as Vice President, Marketing.

"Ourorganization withmore than 230 seasonedprofessionals throughout our
full-service real estate teams generated unparalleled success in building and
expanding lasting relationships with tenants across all of our markets,
including 34 new tenant relationships in 2013," said Kent Griffin, BioMed
Realty's President and Chief Operating Officer. "In 2013, we generated the
largest total leasing volume in our history, completed our largest portfolio
addition with Wexford, and our largest new development and single lease
transaction with Regeneron Pharmaceutical's build-to-suit project at The
Landmark at Eastview. Our tremendous 2013 results augment our proven track
record of success as the leading real estate company focusing on life
sciences."

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, 2013, the company executed 34 leasing
transactions, representing approximately 441,800 square feet, comprising 27
new leases totaling approximately 352,500 square feet and seven lease renewals
totaling approximately 89,300 square feet.

During 2013, the company executed a total of 120 leasing transactions
representing approximately 2.3 million square feet, the highest annual total
gross leasing volume in the company's history, including 75 new leases
totaling approximately 1.4 million square feet. Including leasing activity in
the fourth quarter of 2012, the company executed approximately 2.9 million
square feet of gross leasing transactions, representing approximately 193% of
its original five-quarter goal of 1.5 million square feet.

Fourth quarter same property net operating income on a cash basis increased
6.6% year-over-year, primarily as a result of sustained leasing success and
contractual rent escalations.

For the full year 2013, the company acquired properties for a total estimated
investment of approximately $856.0 million, comprising approximately 2.9
million rentable square feet, which were 83.5% leased at acquisition on a
weighted-average basis, 935,000 rentable square feet under construction and
land that can support an estimated 874,000 square feet of additional
development.

During 2013, the company disposed of two properties totaling 49,250 square
feet, for which it received gross proceeds of approximately $8.0 million and
recognized an aggregate gain on sale of approximately $230,000.

The total operating portfolio was approximately 91.4% leased on a
weighted-average basis as of December 31,2013. At December 31,2013, the
company's total portfolio comprised approximately 16.3 million rentable square
feet, with land supporting an additional 4.9 million square feet of
development potential. 

Fourth Quarter 2013 Financial Results

Total revenues for the fourth quarter were approximately $158.0 million,
compared to approximately $138.8 million for the same period in 2012, an
increase of 13.9%. Rental revenues for the fourth quarter were approximately
$118.0 million, compared to approximately $104.0 million for the same period
in 2012, an increase of 13.5%, and the highest in the company's history.

CFFO for the fourth quarter was $0.34 per diluted share and FFO per share,
calculated in accordance with standards established by NAREIT, was also $0.34
per diluted share for the quarter. AFFO for the quarter was $0.31 per diluted
share. The company reported net income available to common stockholders for
the quarter of approximately $10.3 million, or $0.05 per diluted share.

Financing Activity

During 2013, the company completed the following financing activities:

  oIn March 2013, redeemed all 7,920,000 outstanding shares of its 7.375%
    Series A Cumulative Redeemable Preferred Stock for approximately $198.0
    million.
  oIssued equity totaling approximately $810.1 million through the following
    transactions:

       oIn February 2013, raised net proceeds of $287.0 million through the
         follow-on public offering of 14,605,000 shares of common stock and in
         April 2013, raised net proceeds of $354.1 million through the
         follow-on public offering of 17,250,000 shares of common stock;
       oIn May 2013, issued 5,548,158 shares of common stock valued at
         approximately $125 million as part of the purchase price paid to the
         seller of Wexford Science and Technology; and
       oIn June 2013, issued 2,034,211 operating units in BioMed Realty, L.P.
         valued at approximately $44.0 million as part of the purchase price
         paid to the seller of 320 Charles Street in Cambridge, Massachusetts.

  oIn September 2013, amended and restated the company's senior unsecured
    credit facility to increase the revolving capacity under the credit
    facility to $900 million, add a $350 million term loan, reduce the
    fully-drawn borrowing cost by 35 basis points and extend the maturity date
    to March 24, 2018. At quarter end, the company had $772.0 million
    available under the $900 million revolver.

Commenting on the financial results in 2013, Greg Lubushkin, Chief Financial
Officer of BioMed Realty, remarked, "In 2013, we grew our assets by 24%,
funded primarily with permanent equity capital as we continue to focus on
maintaining a strong, flexible balance sheet, best-in-class credit profile,
and ample liquidity. This pro-active management of our balance sheet
throughout the year – equity issuances aggregating over $800 million, the
expansion of our unsecured revolving loan facility by $150 million while
reducing the fully-drawn borrowing cost, and retiring all of our Series A
preferred stock – helped us earn a positive outlook on our investment grade
corporate credit rating from Standard and Poor's, produced the best liquidity
position in the company's history by a wide margin, and helps ensure that we
are properly capitalized for the long-term."

Quarterly and Annual Distributions

BioMed Realty Trust's board of directors previously declared a fourth quarter
2013 dividend of $0.25 per share of common stock, which represents a 6.4%
increase over the company's third quarter 2013 dividendof $0.235 per share
and is equivalent to an annualized dividend of $1.00 per common share. For
the full year 2013, the company declared dividends totaling $0.955 per common
share, representing an 8.5% increase over common stock dividends declared in
2012.

Earnings Guidance

The company's 2014 guidance for net income per diluted share and FFO per
diluted share remain unchanged andare 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 208.5 million.

                                                        2014
                                                        (Low - High)
Projected net income per diluted share available
to common stockholders                                  $0.14 – $0.24
 Add:
 Real estate depreciation and amortization            $1.26
 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                         $1.37 – $1.47

The company continues to target new investment opportunities, including
acquisitions and new development projects; however, the company's 2014 FFO
estimate does not reflect the impact of any future new investments
(acquisitions or development) or related financing activity, as the FFO 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 Thursday, February 6, 2014 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) 708-4539 (domestic) or (847)
619-6396 (international) with call ID number 36559938. 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 1:00 p.m. Pacific Time on
Thursday, February 6, 2014 until midnight Pacific Time on Tuesday, February
11, 2014 by calling (888) 843-7419 (domestic) or (630) 652-3042
(international) and using access code 36559938#.

About BioMed Realty Trust

BioMed Realty, with its trusted expertise and valuable relationships, 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.
Additional information is available at www.biomedrealty.com. Follow us on
Twitter @biomedrealty.

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)
                                                   December 31,  December 31,
                                                   2013          2012
ASSETS
Investments in real estate, net                    $  5,217,902  $  4,319,716
Investments in unconsolidated partnerships         32,137        32,367
Cash and cash equivalents                          34,706        19,976
Accounts receivable, net                           8,421         4,507
Accrued straight-line rents, net                   173,779       152,096
Deferred leasing costs, net                        198,067       172,363
Other assets                                       307,589       133,454
 Total assets                                    $  5,972,601  $  4,834,479
LIABILITIES AND EQUITY
Mortgage notes payable, net                        $  709,324    $  571,652
Exchangeable senior notes                          180,000       180,000
Unsecured senior notes, net                        895,083       894,177
Unsecured senior term loan                         758,786       405,456
Unsecured line of credit                           128,000       118,000
Accounts payable, accrued expenses and other       314,383       180,653
liabilities
 Total liabilities                               2,985,576     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 at December 31, 2013; and 7,920,000    -             191,469
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, 192,115,002 shares issued and
outstanding at December 31, 2013; and 200,000,000  1,921         1,543
shares authorized, 154,327,818 shares issued and
outstanding at December 31, 2012respectively
Additional paid-in capital                      3,554,558     2,781,849
 Accumulated other comprehensive loss, net       (32,923)      (54,725)
 Dividends in excess of earnings                 (583,569)     (443,280)
 Total stockholders' equity                      2,939,987     2,476,856
Noncontrolling interests                           47,038        7,685
 Total equity                                    2,987,025     2,484,541
 Total liabilities and equity                    $  5,972,601  $  4,834,479





BIOMED REALTY TRUST, INC.



CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data)
                            Three Months Ended        Year Ended
                            December 31,              December 31,
                            2013         2012         2013         2012
                            (Unaudited)  (Unaudited)
Revenues:
 Rental                   $  118,048   $  103,978   $  445,980   $  392,628
 Tenant recoveries        37,597       31,638       141,634      120,793
 Other revenue            2,348        3,155        49,700       4,746
 Total revenues        157,993      138,771      637,314      518,167
Expenses:
 Rental operations        49,891       39,502       184,073      152,219
 Depreciation and         58,781       52,963       245,000      196,844
amortization
 General and              11,817       10,608       44,175       38,025
administrative
 Acquisition-related      19           22           5,282        13,077
expenses
 Total expenses        120,508      103,095      478,530      400,165
 Income from           37,485       35,676       158,784      118,002
operations
 Equity in net loss of    (208)        (379)        (905)        (1,389)
unconsolidated partnerships
 Interest expense, net    (27,837)     (26,745)     (107,727)    (99,608)
 Other income / (expense) 1,136        (292)        (2,943)      (872)
 Income from           10,576       8,260        47,209       16,133
continuing operations
  Loss from         —            —            —            (4,370)
discontinued operations
  Net income        10,576       8,260        47,209       11,763
 Net (income) / loss
attributable to             (297)        (93)         (565)        62
noncontrolling interests
 Net income            10,279       8,167        46,644       11,825
attributable to the company
 Preferred stock          
dividends                                (3,651)      (2,393)      (14,603)
                            —
 Cost on redemption of    —            —            (6,531)      —
preferred stock
Net income / (loss)
available to common         $  10,279    $  4,516     $  37,720    (2,778)
stockholders
Income from continuing
operations per share
available to common
stockholders:
 Basic and diluted        $  0.05      $  0.03      $  0.20      $  —
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        $  0.05      $  0.03      $  0.20      $  (0.03)
earnings per share
Weighted-average common
shares outstanding:
 Basic                    190,664,323  152,790,669  182,043,391  152,752,086
 Diluted                  196,117,552  155,728,210  186,397,022  155,700,387





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 / (loss) available to common
stockholders for the three and twelve months ended December 31, 2013 and 2012
was as follows:
                        Three Months Ended            Year Ended
                        December 31,                  December 31,
                        2013            2012          2013         2012
Net income / (loss)
available to common     $    10,279     $    4,516    $  37,720    $  (2,778)
stockholders


Adjustments:
 (Gain) / loss on     —               —             (229)        4,552
sale of assets
 Noncontrolling
interests in operating  285             86            819          (54)
partnership
 Depreciation and
amortization –          382             323           1,497        1,291
unconsolidated
partnerships
 Depreciation and
amortization –          58,781          52,963        245,000      196,844
consolidated entities
 Depreciation and
amortization –          —               —             —            92
discontinued operations
 Depreciation and
amortization –
allocable to            (418)           (30)          (1,128)      (112)
noncontrolling interest
of consolidated joint
ventures
FFO available to common
shares and units –      $    69,309     $    57,858   $  283,679   $  199,835
basic
  Interest
expense on exchangeable      1,688           1,688       6,750        6,750
senior notes
FFO available to common
shares and units –      $    70,997     $    59,546   $  290,429   $  206,585
diluted

Acquisition-related         19              22          5,282        13,077
expenses
CFFO available to
common shares and units $    71,016     $    59,568   $  295,711   $  219,662
– diluted
FFO per share – diluted $    0.34       $    0.36     $  1.47      $  1.23
CFFO per share –        $    0.34       $    0.36     $  1.49      $  1.31
diluted
Weighted-average common
shares and units        207,969,092     167,524,738   198,193,909  167,437,187
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, 2013 and 2012 was as follows:
                     Three Months Ended              Year Ended
                     December 31,                    December 31,
                     2013            2012            2013          2012
CFFO - diluted       $    71,016     $    59,568     $   295,711   $  219,662
Adjustments:
 Recurring capital
expenditures and     (8,028)         (5,738)         (40,279)      (14,822)
second generation
tenant improvements
 Leasing           (1,780)         (1,476)         (7,048)       (6,231)
commissions
 Non-cash revenue  (2,573)         (3,876)         (3,812)       (7,870)
adjustments
 Non-cash
adjustments for      —               —               2,825         545
securities
 Non-cash debt     2,810           3,122           12,273        11,657
adjustments
 Non-cash equity   3,285           2,860           12,852        11,530
compensation
 Cost on
redemption of        —               —               6,531         —
preferred stock
 Depreciation
included in general  647             510             2,322         1,890
and administrative
expenses
 Share of non-cash
unconsolidated       18              34              113           87
partnership
adjustments
AFFO available to
common shares and    $    65,395     $    55,004     $   281,488   $  216,448
units
AFFO per share –     $    0.31       $    0.33       $   1.42      $  1.29
diluted
Weighted-average
common shares and
units outstanding -  207,969,092     167,524,738     198,193,909   167,437,187

diluted (1)

    The three and twelve months ended December 31,2013 include 10,405,224
    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, 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
(1) the "if converted" method. The three months ended December 31,2013 and
    2012 include 1,446,316 and 1,537,032 shares of unvested restricted stock,
    respectively, which are considered anti-dilutive for purposes of
    calculating diluted earnings per share. The years ended December 31, 2013
    and 2012 include 1,391,663 and 1,477,304 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 partnership and LTIP 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, 858.207.5859,
richard.howe@biomedrealty.com
 
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