SAN DIEGO, July 29 /PRNewswire-FirstCall/ -- BioMed Realty Trust,
Inc. (NYSE:BMR), a real estate investment trust focused on
Providing Real Estate to the Life Science Industry , today
announced operating and financial results for the second quarter
ended June 30, 2009. Highlights: -- Increased total revenues for
the second quarter to $86.1 million, up 21.6% from $70.8 million
for the same period in 2008, driven primarily by sustained leasing
success and deliveries from the company's development pipeline. --
Executed 17 leasing transactions during the quarter, representing
approximately 250,000 square feet. The company entered into 14 new
leases totaling approximately 229,000 square feet, including a
lease with Regeneron Pharmaceuticals, Inc. encompassing
approximately 80,000 square feet at The Landmark at Eastview campus
in Tarrytown, New York. Three leases totaling approximately 21,000
square feet were amended to extend their terms. -- Secured a new
$350 million loan for the Center for Life Science | Boston, the
company's newly constructed 700,000+ square foot state-of-the-art
research facility that recently received Gold LEED certification
from the U.S. Green Building Council. -- Secured a new $18 million
loan for the company's 9865 Towne Centre Drive property which was
built for, and is fully leased to, Illumina, Inc., and which
recently received Silver LEED certification from the U.S. Green
Building Council. -- Repurchased $8.8 million face value of
exchangeable senior notes for approximately 65% of par, resulting
in a gain on extinguishment of debt of approximately $2.6 million.
-- Completed a follow-on public offering of common stock, raising
approximately $166.9 million in net proceeds. -- Generated net
income available to common stockholders of $18.2 million for the
quarter, up 32.8% from the same period in 2008. -- Increased funds
from operations (FFO) for the quarter to $0.48 per diluted share,
or $44.0 million, compared to $0.46 per diluted share, or $34.1
million, for the same period in 2008. Excluding the impact of debt
extinguishment associated with the repurchase of exchangeable
senior notes, FFO for the quarter was $41.4 million, or $0.45 per
diluted share. "BioMed once again demonstrated the resiliency of
our business model and the strength of our team during the second
quarter against the backdrop of a challenging economic
environment," said Alan D. Gold, Chairman and Chief Executive
Officer of BioMed. "We generated strong financial and operating
results from our world class portfolio with a premier tenant roster
of pharmaceutical, biotechnology and research institutions that
continue to make significant breakthroughs in their research,
development and commercialization of key drugs and treatments."
Second Quarter 2009 Operating and Financial Results Rental revenues
for the quarter were $65.7 million, compared to $54.2 million for
the same period in 2008, an increase of 21.2%. Total revenues for
the quarter were $86.1 million, compared to $70.8 million of total
revenues for the same period in 2008, an increase of 21.6%. During
the quarter, the company terminated leases totaling approximately
165,000 square feet. The second quarter financial results included
approximately $2.6 million of other income and $520,000 of
operating expenses associated with lease terminations. The
company's same property portfolio increased to 92.3% leased and net
operating income on a cash basis increased 2.9% for the quarter
compared to the same period in 2008. Net income available to common
stockholders for the quarter was $18.2 million, or $0.20 per
diluted share, compared to $13.7 million, or $0.19 per diluted
share, for the same period in 2008. FFO for the quarter was $0.48
per diluted share, or $44.0 million, compared to $0.46 per diluted
share, or $34.1 million, for the same period in 2008. Excluding the
$2.6 million net impact of the gain on extinguishment of debt
associated with the repurchase of exchangeable senior notes, FFO
for the quarter was $41.4 million, or $0.45 per diluted share. FFO
is a supplemental non-GAAP financial measure 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 and a definition of FFO are included at the end of this
release. Financial information for the current and, where
applicable, prior periods has been presented to reflect the
application of the following new accounting guidance adopted by the
company effective January 1, 2009: FASB Staff Position APB 14-1
"Accounting for Convertible Debt That May be Settled Upon
Conversion (Including Partial Cash Settlement)"; Statement of
Financial Accounting Standard No. 160 "Noncontrolling Interests in
Consolidated Financial Statements - An Amendment of ARB No. 51";
and FASB Staff Position EITF 03-6-1 "Determining Whether
Instruments Granted in Share Based Payment Transactions are
Participating Securities." Financing Activity During the second
quarter, the company closed on a $350 million loan secured by its
Center for Life Science | Boston property. The loan bears interest
at 7.75% per annum and matures in June 2014. Proceeds from the loan
were used to repay a portion of an existing $507.1 million secured
construction loan on the property. BioMed paid down the remaining
balance of the existing secured construction loan by drawing on the
company's unsecured line of credit. This repayment of the secured
construction loan successfully addressed the last of BioMed's debt
maturities in 2009. Also during the quarter, the company closed on
a new $18 million loan secured by the company's 9865 Towne Centre
Drive property in San Diego. The facility was built for, and is
fully leased to, Illumina, Inc., which leases a total of
approximately 193,000 square feet through October 2023 at the Towne
Centre Drive campus. The company also repurchased $8.8 million face
value of its exchangeable senior notes for approximately 65% of
par, resulting in a gain on debt extinguishment of approximately
$2.6 million, net of the write-off of deferred loan fees and debt
discount. The gain on extinguishment of debt was further reduced by
the write-off of approximately $843,000 in deferred loan costs
associated with the repayment of the secured construction loan. In
addition, the company completed the sale of approximately 16.8
million shares of common stock, raising net proceeds of
approximately $166.9 million. The net proceeds were utilized to
repay a portion of the outstanding indebtedness under the company's
unsecured line of credit and for other general corporate and
working capital purposes. At June 30, 2009, the company's debt to
total assets ratio was 41.2%, with approximately 89.5% of the
company's debt fixed or hedged. Kent Griffin, President and Chief
Financial Officer of BioMed, commented, "We further strengthened
our capital structure and liquidity profile by raising over $166
million in equity and completing two new financings totaling $368
million in proceeds. We believe our success in the capital markets
reflects our lending and investment partners' recognition of the
continued strength of BioMed's business and the ability of our
best-in-class team of professionals to execute on our business
model. Beyond the fact that all three transactions occurred in a
single quarter and during the toughest of equity and credit
environments, these accomplishments exemplify our steadfast
commitment to the long-term financial strength and success of the
company." Portfolio Update During the quarter ended June 30, 2009,
the company executed 17 leasing transactions, representing
approximately 250,000 square feet, including 14 new leases totaling
approximately 229,000 square feet. Three leases, totaling
approximately 21,000 square feet, were amended to extend their
terms. As of June 30, 2009, BioMed owned or had interests in 69
properties with 114 buildings, located predominantly in the major
U.S. life science markets of Boston, San Diego, San Francisco,
Seattle, Maryland, Pennsylvania and New York/New Jersey. The
company's portfolio included the following as of June 30, 2009:
Rentable Square Feet ----------- Operating portfolio 9,719,653
Redevelopment properties 154,341 Construction in progress 640,520
----------- Total portfolio 10,514,514 ----------- Land parcels
1,352,000 ----------- Total proforma portfolio 11,866,514
=========== As of June 30, 2009, the company's operating portfolio
was 77% leased to 127 tenants. Earnings Guidance The company is
raising its 2009 guidance for net income per diluted share and FFO
per diluted share, largely reflecting the strong second quarter
results, and narrowing its 2009 guidance for net income per diluted
share and FFO per diluted share due to the company's successful
execution of the new financing for the Center for Life Science |
Boston on schedule and as anticipated. The company's revised 2009
guidance for net income per diluted share and FFO per diluted share
is set forth and reconciled below. 2009 (Low - High) Projected net
income per diluted share available to common stockholders $0.63 -
0.67 Add: Noncontrolling interest in operating partnership $0.02
Real estate depreciation and amortization $0.99 Projected FFO per
diluted share $1.64 - $1.68 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, financing
transactions, interest rates, and the amount and timing of
development and redevelopment activities. The company's actual
results may differ materially from these estimates. Supplemental
Information Supplemental operating and financial data, as well as
the updated Investor Presentation, are available in the Investor
Relations section of the company's website at
http://www.biomedrealty.com/. Teleconference and Webcast BioMed
Realty Trust will conduct a conference call at 10:00 a.m. Pacific
Time (1:00 p.m. Eastern Time) on Thursday, July 30, 2009 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 http://www.biomedrealty.com/ and at
http://www.earnings.com/, or live by calling 866.543.6407
(domestic) or 617.213.8898 (international) with call ID number
46945553. The call 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, July 30, 2009 until
midnight Pacific Time on Tuesday, August 4, 2009 by calling
888.286.8010 (domestic) or 617.801.6888 (international) and using
access code 12764871. About BioMed Realty Trust BioMed Realty
Trust, Inc. is a real estate investment trust (REIT) focused on
Providing Real Estate to the Life Science Industry . The company's
tenants primarily include biotechnology and pharmaceutical
companies, scientific research institutions, government agencies
and other entities involved in the life science industry. BioMed
owns or has interests in 69 properties, representing 114 buildings
with approximately 10.5 million rentable square feet. The company's
properties are located predominantly in the major U.S. life science
markets of Boston, San Diego, San Francisco, Seattle, Maryland,
Pennsylvania and New York/New Jersey, which have well-established
reputations as centers for scientific research. Additional
information is available at http://www.biomedrealty.com/. This
press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
based on current expectations, forecasts and assumptions that
involve risks and uncertainties that could cause actual outcomes
and results to differ materially. These risks and uncertainties
include, without limitation: general risks affecting the real
estate industry (including, without limitation, the inability to
enter into or renew leases, dependence on tenants' financial
condition, and competition from other developers, owners and
operators of real estate); adverse economic or real estate
developments in the life science industry or the company's target
markets; risks associated with the availability and terms of
financing, the use of debt to fund acquisitions and developments,
and the ability to refinance indebtedness as it comes due; failure
to manage effectively the company's growth and expansion into new
markets, or to complete or integrate acquisitions and developments
successfully; risks and uncertainties affecting property
development and construction; risks associated with downturns in
the national and local economies, increases in interest rates, and
volatility in the securities markets; 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) (Unaudited) June 30, 2009 December
31, 2008 ------------- ----------------- (Revised) ASSETS
Investments in real estate, net $2,994,072 $2,960,429 Investments
in unconsolidated partnerships 49,243 18,173 Cash and cash
equivalents 34,101 21,422 Restricted cash 15,638 7,877 Accounts
receivable, net 10,178 9,417 Accrued straight-line rents, net
69,046 58,138 Acquired above-market leases, net 3,688 4,329
Deferred leasing costs, net 90,472 101,519 Deferred loan costs, net
8,535 9,754 Other assets 36,939 38,256 -------------
----------------- Total assets $3,311,912 $3,229,314 =============
================= LIABILITIES AND EQUITY Mortgage notes payable,
net $717,764 $353,161 Secured construction loan - 507,128 Secured
term loan 250,000 250,000 Exchangeable senior notes, net 103,077
122,043 Unsecured line of credit 292,404 108,767 Security deposits
7,660 7,623 Dividends and distributions payable 15,383 32,445
Accounts payable, accrued expenses, and other liabilities 66,406
66,821 Derivative instruments 17,910 126,091 Acquired below-market
leases, net 13,550 17,286 ------------- ----------------- Total
liabilities 1,484,154 1,591,365 Equity: Stockholders' equity:
Preferred stock, $.01 par value, 15,000,000 shares authorized:
7.375% Series A cumulative redeemable preferred stock, $230,000,000
liquidation preference ($25.00 per share), 9,200,000 shares issued
and outstanding at June 30, 2009 and December 31, 2008 222,413
222,413 Common stock, $.01 par value, 150,000,000 and 100,000,000
shares authorized, 98,118,639 and 80,757,421 shares issued and
outstanding at June 30, 2009 and December 31, 2008, respectively
981 808 Additional paid-in capital 1,833,026 1,661,009 Accumulated
other comprehensive loss (91,525) (112,126) Dividends in excess of
earnings (147,306) (146,536) ------------- ----------------- Total
stockholders' equity 1,817,589 1,625,568 Noncontrolling interests
10,169 12,381 ------------- ----------------- Total equity
1,827,758 1,637,949 ------------- ----------------- Total
liabilities and equity $3,311,912 $3,229,314 =============
================= Financial information for the current and, where
applicable, the prior period has been presented to reflect the
application of the following new accounting guidance adopted by the
company effective January 1, 2009: FASB Staff Position APB 14-1
"Accounting for Convertible Debt That May be Settled Upon
Conversion (Including Partial Cash Settlement)"; Statement of
Financial Accounting Standard No. 160 "Noncontrolling Interests in
Consolidated Financial Statements -- An Amendment of ARB No. 51";
and FASB Staff Position EITF 03-6-1 "Determining Whether
Instruments Granted in Share Based Payment Transactions are
Participating Securities." BIOMED REALTY TRUST, INC. CONSOLIDATED
STATEMENTS OF INCOME (In thousands, except share data) (Unaudited)
For the Three Months For the Six Months Ended June 30, Ended June
30, ------------------------------------------------- 2009 2008
2009 2008 ---------- ---------- ---------- ---------- (Revised)
(Revised) Revenues: Rental $65,716 $54,223 $134,135 $104,565 Tenant
recoveries 17,189 15,804 38,270 32,386 Other income 3,175 744 7,626
1,178 ---------- ---------- ---------- ---------- Total revenues
86,080 70,771 180,031 138,129 ---------- ---------- ----------
---------- Expenses: Rental operations 14,661 13,454 36,813 27,318
Real estate taxes 7,613 4,915 14,846 10,185 Depreciation and
amortization 24,501 19,331 51,813 37,018 General and administrative
5,126 5,645 10,407 11,839 ---------- ---------- ----------
---------- Total expenses 51,901 43,345 113,879 86,360 ----------
---------- ---------- ---------- Income from operations 34,179
27,426 66,152 51,769 Equity in net (loss)/ income of unconsolidated
partnerships (465) 43 (766) (130) Interest income 101 106 164 261
Interest expense (12,875) (9,009) (24,955) (16,181) Gain on
derivative instruments 360 - 303 - Gain on extinguishment of debt
1,781 - 6,152 - ---------- ---------- ---------- ---------- Net
income 23,081 18,566 47,050 35,719 Net income attributable to
noncontrolling interests (645) (620) (1,350) (1,202) ----------
---------- ---------- ---------- Net income attributable to Company
22,436 17,946 45,700 34,517 ---------- ---------- ----------
---------- Preferred stock dividends (4,241) (4,241) (8,481)
(8,481) ---------- ---------- ---------- ---------- Net income
available to common stockholders $18,195 $13,705 $37,219 $26,036
========== ========== ========== ========== Net income per share
available to common stockholders: Basic and diluted earnings per
share $0.20 $0.19 $0.44 $0.38 ========== ========== ==========
========== Weighted-average common shares outstanding: Basic
88,503,295 70,094,003 84,403,582 67,722,258 ========== ==========
========== ========== Diluted 92,615,935 73,811,597 88,580,072
71,418,266 ========== ========== ========== ========== Financial
information for the current and, where applicable, the prior period
has been presented to reflect the application of the following new
accounting guidance adopted by the company effective January 1,
2009: FASB Staff Position APB 14-1 "Accounting for Convertible Debt
That May be Settled Upon Conversion (Including Partial Cash
Settlement)"; Statement of Financial Accounting Standard No. 160
"Noncontrolling Interests in Consolidated Financial Statements --
An Amendment of ARB No. 51"; and FASB Staff Position EITF 03-6-1
"Determining Whether Instruments Granted in Share Based Payment
Transactions are Participating Securities." BIOMED REALTY TRUST,
INC. FUNDS FROM OPERATIONS (In thousands, except share data)
(Unaudited) Three Months Ended Six Months Ended June 30, June 30,
----------------------- ----------------------- 2009 2008 2009 2008
---------- ---------- ---------- ---------- (Revised) (Revised) Net
income available to common stockholders $18,195 $13,705 $37,219
$26,036 Adjustments: Noncontrolling interests in operating
partnership 658 619 1,380 1,209 Depreciation and amortization -
unconsolidated partnerships 662 450 1,323 901 Depreciation and
amortization - consolidated entities 24,501 19,331 51,813 37,018
Depreciation and amortization - allocable to noncontrolling
interest of consolidated joint ventures (19) (8) (39) (16)
---------- ---------- ---------- ---------- Funds from operations
available to common shares and Units $43,997 $34,097 $91,696
$65,148 ========== ========== ========== ========== Funds from
operations per share - diluted $0.48 $0.46 $1.04 $0.91 ==========
========== ========== ========== Weighted-average common shares and
Units outstanding - diluted 92,615,935 73,811,597 88,580,072
71,418,266 ========== ========== ========== ========== Financial
information for the current and, where applicable, the prior period
has been presented to reflect the application of the following new
accounting guidance adopted by the company effective January 1,
2009: FASB Staff Position APB 14-1 "Accounting for Convertible Debt
That May be Settled Upon Conversion (Including Partial Cash
Settlement)"; Statement of Financial Accounting Standard No. 160
"Noncontrolling Interests in Consolidated Financial Statements --
An Amendment of ARB No. 51"; and FASB Staff Position EITF 03-6-1
"Determining Whether Instruments Granted in Share Based Payment
Transactions are Participating Securities." We present funds from
operations, or FFO, available to common shares and partnership and
LTIP units because we consider it an important supplemental measure
of our operating performance and believe it is frequently used by
securities analysts, investors and other interested parties in the
evaluation of REITs, many of which present FFO 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, in its March 1995 White Paper (as
amended in November 1999 and April 2002). As defined by NAREIT, FFO
represents net income (computed in accordance with GAAP), excluding
gains (or losses) from sales of property, plus real estate related
depreciation and amortization (excluding amortization of loan
origination costs) and after adjustments for unconsolidated
partnerships and joint ventures. Our computation may differ from
the methodology for calculating FFO utilized by other equity REITs
and, accordingly, may not be comparable to such other REITs.
Further, FFO does 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 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. DATASOURCE: BioMed Realty Trust, Inc. CONTACT:
Rick Howe, Director, Corporate Communications of BioMed Realty
Trust, Inc., +1-858-207-5859 Web Site: http://www.biomedrealty.com/
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