BioMed Realty Trust Reports Second Quarter 2014 Financial Results

      BioMed Realty Trust Reports Second Quarter 2014 Financial Results

Second Quarter Leasing Volume Exceeds 810,000 SF; FFO of $0.40 per Diluted
Share

PR Newswire

SAN DIEGO, Aug. 5, 2014

SAN DIEGO, Aug. 5,2014 /PRNewswire/ --BioMed Realty Trust, Inc. (NYSE: BMR),
the leading real estate company focusing on life sciences, today announced
financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Highlights

Financial and Operating Performance

  oExecuted 63 leasing transactions during the quarter representing
    approximately 812,200 square feet, contributing to an increase in the
    operating portfolio leased percentage on a weighted-average basis to 92.0%
    at quarter end;
  oIncreased same property net operating income on a cash basis by 6.7%
    year-over-year;
  oSet new company records for total and rental revenues of approximately
    $171.2 million and $120.9 million, respectively; and
  oGenerated funds from operations (FFO) and core funds from operations
    (CFFO) of $0.40 per diluted share and adjusted funds from operations
    (AFFO) of $0.32 per diluted share, and reported net income available to
    common stockholders for the quarter of approximately $18.6 million, or
    $0.10 per diluted share.

Acquisitions and Development

  oAdded approximately one million square feet to the company's portfolio
    through its fully-leased investment in the 300 George Street and 100
    College Street properties adjacent to the Yale School of Medicine in New
    Haven, Connecticut;
  oInitiated a new, fully-leased build-to-suit investment to comprise
    approximately 42,400 square feet of laboratory and office space in the
    Cambridge Science Park in Cambridge, United Kingdom. The property is 100%
    pre-leased to Takeda Pharmaceutical Company Limited for 16 years;
  oCommenced construction of a 121,600 square foot laboratory and office
    building at 500 Fairview Avenue in Seattle, Washington;
  oEntered into a 99-year ground lease on a 10-acre site in Philadelphia for
    future development through a collaboration between Drexel University and
    Wexford Science & Technology, a subsidiary of BioMed Realty; and
  oReceived an early payoff of the company's investment in the construction
    loan for the Fan Pier development project in Boston, Massachusetts,
    totaling $199.3 million, reflecting the repayment of $191.2 million in
    principal and accrued interest receivable, and prepayment fees of
    approximately $8.1 million.

Financing Activity

  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; and
  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.

Board Addition

  oAppointed Janice L. Sears, former executive at Bank of America, to the
    company's Board of Directors.

"Our outstanding operating and financial results in the second quarter and
first half of 2014 provide further evidence of the strength of our proven
strategy and business model built on a foundation of operating expertise and
our lasting, long-term relationships across the broad spectrum of life science
organizations," said Alan D. Gold, Chairman and Chief Executive Officer of
BioMed Realty. "As we celebrate the ten-year anniversary of our IPO, we
continue to see opportunities for BioMed Realty to grow throughout all our
markets, led by our dedicated, best-in-class team that possesses a deep
understanding of the life science industry and a sustained track record of
successfully executing our strategy of supporting the collaboration of
academia and private enterprise to develop exciting new technologies and
therapies that improve our lives."

Portfolio Update

During the quarter ended June 30,2014, the company executed 63 leasing
transactions representing approximately 812,200 square feet, contributing to
an operating portfolio leased percentage on a weighted-average basis of 92.0%
and a development portfolio pre-leased percentage of 81.6% at quarter end, and
comprised of:

  o47 new leases totaling approximately 493,200 square feet, highlighted by:

       oLeases with Affymetrix, Inc. for a total of approximately 82,800
         square feet at two adjacent properties in the Torrey Pines submarket
         of San Diego, California, including approximately 53,800 square feet
         at 10255 Science Center Drive and approximately 29,000 square feet at
         10240 Science Center Drive;
       oA lease with Sys-Tech Solutions, Inc. for approximately 50,600 square
         feet at the company's One Research Way property in Princeton, New
         Jersey;
       oA lease with OptiScan Biomedical Corporation totaling approximately
         50,400 square feet at the Bridgeview Technology Park II property in
         Hayward, California;
       oA lease with Intertek USA, Inc. for approximately 46,100 square feet
         at the company's Wateridge Circle property in San Diego, California;
       oA lease expansion with Acorda Therapeutics, Inc. for approximately
         25,400 square feet at the Ardsley Park campus in Ardsley, New York;
         and
       oA lease expansion with a global healthcare company for 24,900 square
         feet at the company's new development at 500 Fairview Avenue in
         Seattle, Washington.

  o16 lease renewals and extensions totaling approximately 319,000 square
    feet, highlighted by a lease extension with a private biotechnology
    company for approximately 235,800 square feet, which also included
    approximately 26,400 square feet of new additional space, at the Pacific
    Research Center in Newark, California.

At June 30,2014, the company's total portfolio comprised approximately 17.2
million rentable square feet, with land supporting an estimated additional 7.5
million square feet of development potential. Second quarter same property
net operating income on a cash basis increased 6.7% year-over-year, primarily
as a result of sustained leasing success and contractual rent escalations.
During the second quarter, the lease at the company's King of Prussia property
in Radnor, Pennsylvania reached term, and, as planned, the site is now held
for development potential. Had the property remained in the same property
pool, same property net operating income on a cash basis would have increased
3.2% year-over-year.

During the second 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 98.7% 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 a 510,000 square foot
laboratory and office building that is pre-leased and anchored by Alexion
Pharmaceuticals, Inc. with a weighted-average remaining lease term of over 13
years. The total project investment, upon completion, is expected to be
approximately $308 million.

Also during the quarter, the company made an initial $3.9 million investment
in a development in the Cambridge Science Park in Cambridge, United Kingdom as
a build-to-suit property for Takeda Pharmaceutical Company Limited. Upon
completion, the property is expected to comprise approximately 42,400 square
feet of laboratory and office space which will be 100% leased to Takeda for 16
years, with a projected total investment of approximately $24.4 million.

In addition, during the second quarter, as a result of a collaboration between
Drexel University and Wexford Science & Technology, a subsidiary of BioMed
Realty, Drexel University purchased a 14-acre site from the School District of
Philadelphia which formerly housed the University City High School, the
Charles Drew Elementary School and The Walnut Center. Concurrent with the
close of the purchase, Drexel University took title to the underlying land and
Wexford entered into a 99-year ground lease for approximately ten acres of the
site which provides an estimated 2.3 million square feet of development
potential, with a mixed-use plan that includes laboratory and research office,
residential, retail and recreational space. The company's initial investment
totaled approximately $18.2 million.

During the quarter, the company commenced construction on a 121,600 square
foot laboratory and office building at 500 Fairview Avenue in Seattle,
Washington. A global healthcare company will initially be leasing
approximately 24,900 square feet. The two buildings together, comprising
approximately 223,000 square feet of state-of-the-art life science real
estate, are being renamed the BioMed Realty Research Center and will serve as
an iconic hub for innovation in Seattle's life science community, offering
amenities including onsite parking, a fitness center and a conference center.

In connection with an expansion by Acorda Therapeutics completed during the
second quarter, the company is expanding its Ardsley Park campus by a total of
47,400 square feet to accommodate the new 25,400 square foot lease. Upon
completion of the expansion, the campus will comprise approximately 207,900
square feet that is 89.4% leased.

Kent Griffin, President of BioMed Realty, remarked, "Our exceptionally strong
operating results of the second quarter benefited from broad-based leasing
success and three strategically important portfolio additions that expand our
footprint and create new connection points at cornerstones of scientific
innovation – Yale University, University of Pennsylvania, Drexel University,
and the University of Cambridge. We enter our second decade as a public
company with very strong momentum on all fronts, thanks to the vitality of the
life science industry, our team's steady execution of our business model, and
the sustained support of our tenant relationships and business partners."

Subsequent to the end of the quarter, the company and Bristol-Myers Squibb
entered into a ten year lease for approximately 61,000 square feet of
additional laboratory space at the company's Woodside Technology Park life
science campus in Redwood City, California, and extended its existing lease at
the campus for 133,000 square feet by an additional 30 months. In addition,
the company entered into a lease termination with the tenant for 180,000
square feet at its 50 Hampshire building in Cambridge, Massachusetts. The
original lease would have reached term in December 2019. Under the terms of
the agreement, the tenant will pay a termination fee of $8.5 million and
vacate the space at the end of March 2015.

Second Quarter 2014 Financial Results

Rental revenues for the second quarter were approximately $120.9 million,
compared to approximately $108.1 million for the same period in 2013, an
increase of 11.9% and the highest in the company's history. Total revenues
for the second quarter were approximately $171.2 million, compared to
approximately $159.6 million for the same period in 2013, an increase of 7.2%,
also the highest in the company's history. Total revenues for the second
quarter 2014 include other revenue of approximately $8.1 million, relating to
prepayment fees on the early repayment of the company's investment in the
construction loan for the Fan Pier development in Boston, Massachusetts, which
contributed approximately $0.03 per diluted share in excess of interest income
expected from the loan during the quarter. Total revenues for the second
quarter 2013 include other revenue of approximately $17.7 million associated
with the termination of leases at the company's Science Center at Oyster Point
in South San Francisco, California (which was immediately re-leased to Life
Technologies Corporation).

CFFO for the first quarter was $0.40 per diluted share and FFO, calculated in
accordance with standards established by NAREIT, was also $0.40 per diluted
share for the quarter. AFFO for the quarter was $0.32 per diluted share. The
company reported net income available to common stockholders for the quarter
of approximately $18.6 million, or $0.10 per diluted share.

Financing Activity

During the second 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.

Subsequent to the end of the quarter, certain holders of the company's
exchangeable senior notes exercised their exchange rights, pursuant to which
the company issued approximately 2.6 million shares of common stock in
exchange for approximately $44.5 million principal amount of notes.

Also subsequent to quarter end, the company amended the terms of the loan held
through its joint venture with Prudential Real Estate Investors (PREI) and
secured by the PREI joint venture's 650 E. Kendall Street property in
Cambridge, Massachusetts, extending the loan's maturity date to August 13,
2015 and reducing the applicable credit spread to 205 basis points, with an
option to further extend the maturity date to August 13, 2016.

Commenting on the financial results of the second quarter, Greg Lubushkin,
Chief Financial Officer of BioMed Realty, remarked, "Exceptional leasing
results and our strategic investments continue to drive record rental
revenues, robust same property cash NOI growth and steady core funds from
operations, all of which are well supported by our strong, flexible balance
sheet and industry-leading capital structure. Our proven capital strategy and
execution was validated in the second quarter when our investment grade
corporate credit rating was upgraded by S&P to BBB and we executed a highly
efficient $400 million offering of 2.625% unsecured senior notes. These
successes provide the foundation for us to continue to pursue strategic growth
opportunities which create value for our stockholders."

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 197.8 million and 208.8 million,
respectively.

                                                                 2014
                                                                 (Low - High)
Projected net income per diluted share available to common       $0.26 – $0.30
stockholders
 Add:
 Real estate depreciation and amortization                      $1.26
 Noncontrolling interests in operating partnership              $0.01
 Less:
 Net effect of assumed conversion of exchangeable senior notes  ($0.03)
due 2030
Projected FFO per diluted share                                  $1.50 – $1.54
Add: Acquisition costs                                           $0.01
Projected CFFO per diluted share                                 $1.51 – $1.55



The company's 2014 FFO and CFFO estimates reflect the company's year-to-date
operating results. In addition, these estimates reflect early repayment of
the construction loan in the Fan Pier development project (with previous
estimates assuming repayment in the third quarter of 2014) and the 50
Hampshire lease termination executed subsequent to quarter end. The company
received prepayment fees on the construction loan of approximately $8.1
million in the second quarter which, as a result of the early payoff, are
partially offset, on a full year basis, by a reduction in anticipated interest
income from the loan. The impact of the 50 Hampshire lease termination fee,
net of related GAAP adjustments, totaled $7.5 million and will be recognized
ratably as additional revenue from August 2014 through March 2015, when the
lease will terminate. The impact of these two items has the net effect of
increasing the company's estimates for 2014 FFO and CFFO by approximately
$0.03 per diluted share.

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 new development starts) 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 1:30 p.m. Eastern
Time (10:30 a.m. Pacific Time) on Wednesday, August 6, 2014 to discuss the
company's financial results and operations for the quarter from the New York
Stock Exchange as part of the company's Investor Day 2014 event. The call
will be open to all interested investors either through a live audio web cast
at the Investor Relations section of the company's web site at
www.biomedrealty.com and at www.earnings.com, which will include an online
slide presentation to accompany the call, or live by calling (877) 261-8990
(domestic) or (847) 619-6441 (international) with call ID number 37659214. 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 4:30 p.m. Eastern
Time on Wednesday, August 6, 2014 until midnight Eastern Time on Monday,
August 11, 2014 by calling (888) 843-7419 (domestic) or (630) 652-3042
(international) and using access code 37659214#.

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 17.2 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)
                                                    June 30,      December 31,
                                                    2014          2013
                                                    (Unaudited)
ASSETS
Investments in real estate, net                     $ 5,474,648   $ 5,217,902
Investments in unconsolidated partnerships          32,440        32,137
Cash and cash equivalents                           39,004        34,706
Accounts receivable, net                            9,686         8,421
Accrued straight-line rents, net                    181,705       173,779
Deferred leasing costs, net                         236,848       198,067
Other assets                                        185,406       307,589
 Total assets                                      $ 6,159,737   $ 5,972,601
LIABILITIES AND EQUITY
Mortgage notes payable, net                         $ 456,034     $ 709,324
Exchangeable senior notes                           180,000       180,000
Unsecured senior notes, net                         1,293,246     895,083
Unsecured senior term loan                          764,106       758,786
Unsecured line of credit                            155,000       128,000
Accounts payable, accrued expenses and other        358,958       314,383
liabilities
 Total liabilities                                 3,207,344     2,985,576
Equity:
Stockholders' equity:
Common stock, $.01 par value, 250,000,000 shares
authorized, 192,525,766 shares 192,115,002 shares   1,925         1,921
issued and outstanding at June 30, 2014 and
December 31, 2013, respectively
Additional paid-in capital                          3,557,886     3,554,558
Accumulated other comprehensive loss, net           (24,088)      (32,923)
Dividends in excess of earnings                     (642,360)     (583,569)
 Total stockholders' equity                        2,893,363     2,939,987
Noncontrolling interests                            59,030        47,038
 Total equity                                      2,952,393     2,987,025
 Total liabilities and equity                      $ 6,159,737   $ 5,972,601





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,
                         2014           2013         2014         2013
Revenues:
Rental                  $   120,924    $  108,092   $  240,950   $  211,048
Tenant recoveries        40,280         32,494       79,015       65,131
Other revenue            9,957          19,053       20,072       43,911
Total revenues           171,161        159,639      340,037      320,090
Expenses:
Rental operations        53,636         41,941       106,159      82,494
Depreciation and         62,736         63,557       125,145      124,320
amortization
General and              12,443         10,396       24,385       20,424
administrative
Acquisition-related      1,134          2,120        2,384        4,357
expenses
Total expenses           129,949        118,014      258,073      231,595
Income from operations   41,212         41,625       81,964       88,495
Equity in net loss of
unconsolidated           (10)           (267)        (148)        (585)
partnerships
Interest expense, net    (23,131)       (26,119)     (51,141)     (52,021)
Other expense            1,027          (202)        9,190        (3,392)
 Net income           19,098         15,037       39,865       32,497
Net income attributable
to noncontrolling        (462)          (234)        (2,396)      (379)
interests
Net income attributable  18,636         14,803       37,469       32,118
to the company
Preferred stock          —              —            —            (2,393)
dividends
Cost on redemption of    —              —            —            (6,531)
preferred stock
Net income available to  $   18,636     $  14,803    $  37,469    $  23,194
common stockholders
Income from continuing
operations per share
available to common
stockholders:
Basic and diluted        $   0.10       $  0.08      $  0.19      $  0.13
earnings per share
Weighted-average common
shares outstanding:
Basic                    191,003,248    186,735,157  190,954,827  173,288,517
Diluted                  196,800,354    190,151,166  196,673,649  176,508,215



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, 2014 and 2013 was as follows:
                        Three Months Ended            Six Months Ended
                        June 30,                      June 30,
                        2014            2013          2014            2013
Net income available to $    18,636     $    14,803   $  37,469    $  23,194
the common stockholders
Adjustments:
Noncontrolling
interests in operating  514             263           1,035        416
partnership
Depreciation and
amortization –          403             367           776          736
unconsolidated
partnerships
Depreciation and
amortization –          62,736          63,557        125,145      124,320
consolidated entities
Depreciation and
amortization –
allocable to            (599)           (164)         (1,040)      (194)
noncontrolling interest
of consolidated joint
ventures
FFO available to common
shares and units –      $    81,690     $    78,826   $  163,385   $  148,472
basic
 Interest expense
on exchangeable senior       1,688           1,688       3,375        3,375
notes
FFO available to common
shares and units –      $    83,378     $    80,514   $  166,760   $  151,847
diluted

Acquisition-related          1,134           2,120       2,384        4,357
expenses
CFFO – diluted          $    84,512     $    82,634   $  169,144   $  156,204
FFO per share – diluted $    0.40       $    0.40     $  0.80      $  0.81
CFFO per share –        $    0.40       $    0.41     $  0.81      $  0.83
diluted
Weighted-average common
shares and units        208,887,941     201,716,873   208,761,935  188,119,664
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 June 30,
2014 and 2013 was as follows:
                   Three Months Ended               Six Months Ended
                   June 30,                         June 30,
                   2014              2013           2014          2013
CFFO - diluted     $    84,512            82,634    $  169,144    $  156,204
Adjustments:
Recurring capital
expenditures and
second generation  (21,553)          (12,599)       (29,284)      (22,394)
tenant
improvements
Leasing            (1,929)           (1,985)        (3,839)       (3,565)
commissions
Non-cash revenue   (1,830)           (821)          (4,752)       2,422
adjustments
Non-cash
adjustment for     50                —              50            2,825
securities
Non-cash debt      3,568             3,059          6,501         6,158
adjustments
Non-cash equity    3,729             3,067          7,479         6,078
compensation
Cost on redemption —                 —              —             6,531
of preferred stock
Depreciation
included in
general and        757               565            1,497         1,046
administrative
expenses
Share of non-cash
unconsolidated     18                31             36            71
partnership
adjustments
AFFO available to
common shares and  $    67,322            73,951    $  146,832    $  155,376
units
AFFO per share –   $    0.32              0.37      $  0.70       $  0.83
diluted
Weighted-average
common shares and
units outstanding  208,887,941       201,716,873    208,761,935   188,119,664
-

diluted (1)

    The three and six months ended June 30,2014 include 10,578,132 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, 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.
(1) The three months ended June 30,2014 and 2013 include 1,509,455 and
    1,306,211 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, 2014 and 2013 include 1,510,154 and
    1,351,953 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 adding to 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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