BioMed Realty Trust Reports First Quarter 2014 Financial Results

       BioMed Realty Trust Reports First Quarter 2014 Financial Results

First Quarter Leasing Volume of 480,400 SF; Same Property Cash NOI Up 6.8%
Year-over-Year

PR Newswire

SAN DIEGO, April 30, 2014

SAN DIEGO, April 30,2014 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE:
BMR), the leading real estate company focusing on life sciences, today
announced financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Highlights

  oExecuted 59 leasing transactions during the quarter representing
    approximately 480,400 square feet, including 96,100 square feet of
    positive net absorption and 126,200 square feet of pre-leasing,
    contributing to an operating portfolio leased percentage on a
    weighted-average basis of 91.5% and a development portfolio leased
    percentage of 81.7% at quarter end;
  oIncreased same property net operating income on a cash basis by 6.8%
    year-over-year and set new company records for total and rental revenues
    of approximately $168.9 million and $120.0 million, respectively;
  oGenerated core funds from operations (CFFO) of $0.41 per diluted share and
    adjusted funds from operations (AFFO) of $0.38 per diluted share, and
    reported net income available to common stockholders for the quarter of
    approximately $18.8 million, or $0.10 per diluted share; and
  oContinued to enhance the breadth and depth of the company's organization
    with the promotion of David Hsiao to Vice President, Information
    Technology.

Subsequent to the end of the first quarter, the company:

  oAdded approximately one million square feet to the company's portfolio
    through its investment in the 300 George Street and 100 College Street
    properties adjacent to the Yale School of Medicine in New Haven,
    Connecticut, and as a result added Alexion Pharmaceuticals, Inc.to the
    company's top-ten tenant roster;
  oRepaid in full the $333.4 million principal amount outstanding on its
    mortgage loan secured by the Center for Life Science | Boston, which bore
    interest at 7.75% per annum;
  oReceived an upgrade on the company's investment grade corporate credit
    rating from Standard & Poor's Ratings Services to BBB, after receiving a
    positive outlook from Moody's Investors Service in March 2014;
  oCompleted a public offering of $400 million aggregate principal amount of
    2.625% Senior Notes due 2019, priced at 99.408% of the principal amount to
    yield 2.752% to maturity; and
  oAppointed Janice L. Sears, former executive at Bank of America, to the
    company's Board of Directors.

Commenting on the first quarter results, BioMed Realty's Chairman and Chief
Executive Officer, Alan D. Gold, said, "We remain focused on providing real
estate solutions that serve as the connection point for the academic, medical
research and commercial biotech communities. Our recent accomplishments
clearly demonstrate our continued strong execution on this strategy as
illustrated by the significant leasing in Philadelphia and San Diego and our
recently announced acquisition in New Haven, on the front doorsteps of Yale
University. We recognize and are leveraging the critical nature of proximity
and the growing desire of commercial pharmaceutical companies and life science
research organizations to be located together in collaborative communities
adjacent to the important centers of academic research, including Yale
University, University of Pennsylvania, Harvard University and University of
California, San Diego."

Portfolio Update

During the quarter ended March 31,2014, the company executed 59 leasing
transactions representing approximately 480,400 square feet, contributing to
an operating portfolio leased percentage on a weighted-average basis of 91.5%
and a development portfolio leased percentage of 81.7% at quarter end, and
comprised of:

  o49 new leases totaling approximately 307,300 square feet, highlighted by:

       oLeases with Synthetic Genomics Inc. and Human Longevity Inc., two
         genomic research organizations co-founded by genomics research
         pioneer J. Craig Venter, totaling approximately 125,200 square feet
         at the company's 4570 Executive Drive property in San Diego,
         California. Concurrent with these transactions, BioMed Realty
         terminated its leases at 4570 Executive Drive with Bristol-Myers
         Squibb Company and another tenant, which were previously scheduled to
         expire in phases from 2015 to 2018.
       oA lease expansion with the University of Pennsylvania Health System
         (UPHS) for approximately 55,900 square feet at the company's 3737
         Market Street building on the University City Science Center's campus
         in Philadelphia, Pennsylvania, bringing UPHS's total leased space at
         the property to approximately 211,600 square feet.
       oA new lease with a life science company developing gene therapies for
         approximately 28,100 square feet at the company's 3737 Market Street
         building in Philadelphia.

  oTen lease renewals totaling approximately 173,100 square feet, highlighted
    by a lease extension with Revance Therapeutics, Inc. for approximately
    90,400 square feet at the company's Pacific Research Center in Newark,
    California.

At March 31,2014, 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. First quarter same property net
operating income on a cash basis increased 6.8% year-over-year, primarily as a
result of sustained leasing success and contractual rent escalations.

Following the end of the first quarter, the company invested in two
properties, 300 George Street and 100 College Street, adjacent to the Yale
School of Medicine in New Haven, Connecticut. The 300 George Street property
is a 519,000 square foot laboratory and office building, which is 99% leased
and anchored by long-term leases to Yale University and the Yale-New Haven
Hospital, with a weighted-average remaining lease term of over eleven years.
The 100 College Street property, currently under construction, is expected to
be a fully leased, 508,000 square foot laboratory and office building anchored
by Alexion Pharmaceuticals, which plans to use the space as its new global
headquarters, with a weighted-average remaining lease term of over 13 years.
The total project investment, upon completion, is expected to be approximately
$308 million, including a continuing partnership interest of Winstanley
Enterprises LLC, which will also continue to provide construction and property
management services for the project.

"The tremendous results in the first quarter, and continuing into the second
quarter, encompass every aspect of our proven business model," said Kent
Griffin, President of BioMed Realty. "We focus on building strong, valued
relationships with existing and new tenants. During the quarter, we expanded
our existing relationship with J. Craig Venter, entering into ten-year leases
for approximately 125,000 square feet at our 4570 Executive Drive property
with two companies he co-founded. With our investment acumen, we were able to
leverage our expertise and relationships in the university marketplace to
acquire the 100 College Street and 300 George Street properties in New Haven,
Connecticut. This transaction highlights the importance of being at the
intersection of academia and the commercial world, with over one million
square feet of state-of-the-art laboratory and office space fully leased to
top-tier tenants including Yale University, Yale-New Haven Hospital and
Alexion Pharmaceuticals."

First Quarter 2014 Financial Results

Rental revenues for the first quarter were approximately $120.0 million,
compared to approximately $103.0 million for the same period in 2013, an
increase of 16.6% and the highest in the company's history. Total revenues
for the first quarter were approximately $168.9 million, compared to
approximately $160.5 million for the same period in 2013, an increase of 5.3%,
also the highest in the company's history. Total revenues for the first
quarter 2014 include other revenues of approximately $5.3 million associated
with the termination of leases at the company's 4570 Executive Drive property
in San Diego, California (which was immediately leased to two tenants). Total
revenues for the first quarter 2013 include other revenue of approximately
$24.0 million associated with the termination of leases at the company's
Science Center at Oyster Point in South San Francisco, California (which was
immediate leased to Life Technologies Corporation). Excluding termination
revenue, total revenues grew 19.9% year-over-year. In addition, during the
first quarter, the company realized net gains of approximately $6.5 million
primarily from the sale of certain investments in publicly-traded life science
companies, of which approximately $8.0 million is reflected in other income
and is offset by approximately $1.5 million related to a minority interest.

CFFO for the first quarter was $0.41 per diluted share and 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 $0.38 per diluted
share. The company reported net income available to common stockholders for
the quarter of approximately $18.8 million, or $0.10 per diluted share.

Financing Activity

Subsequent to the end of the first quarter of 2014, the company:

  oRepaid in full the $333.4 million principal amount outstanding on its
    mortgage loan secured by the Center for Life Science | Boston, which bore
    interest at 7.75% per annum;
  oReceived an upgrade of its investment grade corporate credit rating from
    Standard & Poor's Ratings Services (S&P) from BBB– to BBB, after receiving
    a positive outlook from Moody's Investors Service in March 2014; and
  oCompleted a public offering of $400 million aggregate principal amount of
    2.625% Senior Notes due 2019, which were priced at 99.408% of the
    principal amount to yield 2.752% to maturity. Proceeds were used to repay
    amounts outstanding under the company's revolving credit facility.

Greg Lubushkin, BioMed Realty's Chief Financial Officer, added, "Our growth is
amply supported by our sound capital strategy, which has been one of our
hallmarks throughout our history and continues to be validated by our
sustained, prudent growth. Our strong liquidity position enabled us to prepay
the 7.75% mortgage secured by the Center for Life Science | Boston on April 1.
Shortly thereafter we received an upgrade to our investment grade corporate
credit rating by S&P to BBB, which was followed almost immediately by our very
successful $400 million offering of 2.625% unsecured senior notes in April."

Quarterly and Annual Distributions

BioMed Realty Trust's board of directors previously declared a first quarter
2014 dividend of $0.25 per share of common stock. The first quarter common
share dividend is equivalent to an annualized dividend of $1.00 per common
share.

Earnings Guidance

The company's updated 2014 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 and FFO per diluted share (and CFFO per
diluted share) are based upon estimated, weighted-average diluted common
shares outstanding of approximately 197.7 million and 208.6 million,
respectively.

                                                     2014
                                                     (Low - High)
Projected net income per diluted share available
to common stockholders                               $0.19 – $0.27
 Add:
 Real estate depreciation and amortization          $1.30
 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                      $1.45 – $1.53
Add: Acquisition costs                               $0.01
Projected CFFO per share                             $1.46 – $1.54

The company's 2014 FFO and CFFO estimates reflect the company's strong
operating results, recent investments and capital transactions, including the
effect of the investment in the 300 George Street and 100 College Street
properties, the prepayment of the Center for Life Science | Boston mortgage
and the issuance of $400 million 2.625% Senior Notes due 2019. The company
continues to target new investment opportunities, including acquisitions and
new development projects; however, the company's 2014 FFO and CFFO estimates
do not reflect the impact of any future new investments (acquisitions or
development) or related financing activity, 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 Thursday, May 1, 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) 708-4540 (domestic) or (847)
619-6397 (international) with call ID number 37141856. The complete webcast
will be archived for 30 days on both web sites. A telephone playback of the
conference call will also be available from 1:30 p.m. Pacific Time on
Thursday, May 1, 2014 until midnight Pacific Time on Tuesday, May 6, 2014 by
calling (888) 843-7419 (domestic) or (630) 652-3042 (international) and using
access code 37141856#.

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 17.3 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)
                                                     March 31,    December 31,
                                                     2014         2013
                                                     (Unaudited)
ASSETS
Investments in real estate, net                      $ 5,235,036  $ 5,217,902
Investments in unconsolidated partnerships           31,461       32,137
Cash and cash equivalents                            59,121       34,706
Accounts receivable, net                             10,719       8,421
Accrued straight-line rents, net                     178,114      173,779
Deferred leasing costs, net                          189,527      198,067
Other assets                                         371,453      307,589
 Total assets                                 $ 6,075,431  $ 5,972,601
LIABILITIES AND EQUITY
Mortgage notes payable, net                          $ 706,013    $ 709,324
Exchangeable senior notes                            180,000      180,000
Unsecured senior notes, net                          895,312      895,083
Unsecured senior term loan                           760,066      758,786
Unsecured line of credit                             226,000      128,000
Accounts payable, accrued expenses and other         333,157      314,383
liabilities
 Total liabilities                           3,100,548    2,985,576
Equity:
Stockholders' equity:
Common stock, $.01 par value, 250,000,000 shares
authorized, 192,502,965 and192,115,002 shares       1,925        1,921
issued and outstanding at March 31, 2014 and
December 31, 2013, respectively
Additional paid-in capital                           3,554,504    3,554,558
Accumulated other comprehensive loss, net            (19,973)     (32,923)
Dividends in excess of earnings                      (612,864)    (583,569)
Total stockholders' equity                           2,923,592    2,939,987
Noncontrolling interests                             51,291       47,038
 Total equity                                 2,974,883    2,987,025
 Total liabilities and equity                 $ 6,075,431  $ 5,972,601





BIOMED REALTY TRUST, INC.



CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)
                                                    For the Three Months Ended
                                                    March 31,
                                                    2014           2013
Revenues:
 Rental                                         $    120,026   $  102,956
 Tenant recoveries                              38,735         32,637
 Other revenue                                  10,115         24,857
 Total revenues                            168,876        160,450
Expenses:
 Rental operations                              52,523         40,553
 Depreciation and amortization                  62,409         60,764
 General and administrative                     11,942         10,028
 Acquisition-related expenses                   1,250          2,236
 Total expenses                           128,124        113,581
 Income from operations                   40,752         46,869
 Equity in net loss of unconsolidated           (138)          (319)
partnerships
 Interest expense, net                          (28,010)       (25,902)
 Other income / (expense)                       8,163          (3,190)
 Net income                               20,767         17,458
 Net income attributable to noncontrolling      (1,934)        (146)
interests
 Net income attributable to the company   18,833         17,312
 Preferred stock dividends                      —              (2,393)
 Cost on redemption of preferred stock          —              (6,531)
Net income available to common stockholders         $    18,833    $  8,388
Income from continuing operations per share
available to common stockholders:
 Basic and diluted earnings per share           $    0.10      $  0.05
Weighted-average common shares outstanding:
 Basic                                           190,905,867    159,692,470
 Diluted                                         196,545,536    162,713,677





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, 2014 and
2013 was as follows:
                                    Three Months Ended
                                    March 31,
                                    2014                     2013
Net income available to common      $       18,833           $      8,388
stockholders


Adjustments:
 Noncontrolling interests in     521                      154
operating partnership
 Depreciation and amortization – 373                      369
unconsolidated partnerships
 Depreciation and amortization – 62,409                   60,764
consolidated entities
 Depreciation and amortization –
allocable to noncontrolling         (441)                    (30)
interest of consolidated joint
ventures
FFO available to common shares and          81,695                  69,645
units – basic
 Interest expense on                    1,688                   1,688
exchangeable senior notes
FFO available to common shares and          83,383                  71,333
units – diluted
 Acquisition-related expenses           1,250                   2,236
CFFO available to common shares and $       84,633           $      73,569
units – diluted
FFO per share – diluted             $       0.40             $      0.41
CFFO per share – diluted            $       0.41             $      0.42
Weighted-average common shares and  208,581,807              174,371,376
units outstanding – diluted (1)





Our AFFO available to common shares and partnership and LTIP units and a
reconciliation of CFFO to AFFO for the three months ended March 31, 2014 and
2013 was as follows:
                                   Three Months Ended
                                   March 31,
                                   2014                     2013
CFFO - diluted                     $       84,633           $       73,569
Adjustments:
 Recurring capital expenditures
and second generation tenant       (7,731)                  (9,795)
improvements
 Leasing commissions            (1,910)                  (1,580)
 Non-cash revenue adjustments   (2,922)                  3,243
 Non-cash debt adjustments      2,933                    5,924
 Non-cash equity compensation   3,750                    3,011
 Cost on redemption of          —                        6,531
preferred stock
 Depreciation included in
general and administrative         740                      481
expenses
 Share of non-cash
unconsolidated partnership         18                       40
adjustments
AFFO available to common shares    $       79,511           $       81,424
and units
AFFO per share – diluted           $       0.38             $       0.47
Weighted-average common shares and
units outstanding -                208,581,807              174,371,376

diluted (1)

    The three months ended March 31,2014 include 10,525,410 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 months ended March 31, 2013 include 10,259,496 shares of common
(1) stock 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 31,2014 and 2013 include 1,510,861 and
    1,398,203 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, 858.207.5859,
richard.howe@biomedrealty.com
 
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