SAN DIEGO, Oct. 28 /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 third quarter
ended September 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20091005/BIOMEDLOGO)
Highlights: -- Increased total revenues for the third quarter to
$93.0 million, up 15.1% from $80.8 million for the same period in
2008. -- Generated funds from operations (FFO) for the quarter of
$0.35 per diluted share, or $35.8 million. -- Delivered a
build-to-suit development of an approximately 230,000 square foot
corporate headquarters and research facility at The Landmark at
Eastview campus in Tarrytown, New York for Regeneron
Pharmaceuticals, Inc. -- Executed eleven leasing transactions
during the quarter, representing approximately 272,000 square feet:
-- Eight new leases totaling approximately 229,000 square feet,
including leases with Progenics Pharmaceuticals, Inc. and Momentive
Performance Materials USA Inc., encompassing approximately 92,000
and 64,000 square feet, respectively, at The Landmark at Eastview
campus; and -- Three leases totaling approximately 43,000 square
feet amended to extend their terms. -- Repaid approximately $44.0
million of mortgage debt prior to its scheduled maturity, resulting
in a lower aggregate borrowing cost. The company's debt to total
assets ratio decreased to 40.9% at September 30, 2009. --
Implemented equity distribution agreements in which the company may
offer and sell shares of its common stock over time having
aggregate gross proceeds of up to $120.0 million. Commenting on
BioMed's third quarter results, Chairman and Chief Executive
Officer Alan D. Gold said, "Our asset class continues to
demonstrate the strength and stability that make the investment
opportunities so appealing. I am particularly pleased that the
disciplined approach to managing our business and our properties is
allowing us to reap rewards. Our delivery of two new buildings to
Regeneron in the third quarter, combined with today's announcement
regarding the lease with the Broad Institute, serves as further
testimony to the quality of our life science property portfolio and
the expertise of our team that continues to excel in an otherwise
challenging environment." Mr. Gold added, "The third quarter was
positive for the life science industry, as capital availability
from follow-on equity offerings and partnership transactions
continued at a very robust pace. BioMed is very well-positioned to
continue executing on our core business strategy and capitalizing
on future opportunities as a result of the long-term demand drivers
and sustained funding of the life science industry." Third Quarter
2009 Operating and Financial Results Rental revenues for the
quarter were $68.5 million, compared to $59.4 million for the same
period in 2008, an increase of 15.3%. Total revenues for the
quarter were $93.0 million, compared to $80.8 million for the same
period in 2008, an increase of 15.1%. The revenue increases
resulted primarily from increased rents associated with successful
leasing activity in 2008 and 2009 and the delivery of properties
from the company's development pipeline. The same property
portfolio was 90.9% leased as of September 30, 2009. Same property
net operating income on a cash basis decreased 1.4% for the quarter
compared to the same period in 2008, primarily as a result of
negotiated lease terminations that had the effect of accelerating
cash rent collection recognized as other income, which is not
included in the company's calculation of same property cash NOI
results. Excluding four properties for which lease terminations had
the effect of recognizing $10.2 million of other income in the
previous four quarters, same property net operating income on a
cash basis increased 3.5% primarily as a result of scheduled rent
escalations. Net income available to common stockholders for the
quarter was $4.1 million, or $0.04 per diluted share, compared to
$12.4 million, or $0.17 per diluted share, for the same period in
2008. FFO for the quarter was $35.8 million, or $0.35 per diluted
share, compared to $35.0 million, or $0.47 per diluted share, for
the same period in 2008. FFO increased year-over-year primarily due
to higher rental revenues, partially offset by higher interest
expense resulting from the previously announced refinancing of the
Center for Life Science | Boston construction loan in the second
quarter of 2009 and lower capitalized interest due to continued
deliveries of development and redevelopment properties into
service. The effect of lease terminations increased third quarter
FFO by approximately $4.2 million, which was partially offset by
approximately $900,000 related to the company's pro-rata portion of
litigation reserves of the company's joint venture investments. The
net effect of these items was an increase in FFO of approximately
$3.3 million, or $0.03 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 new
accounting guidance on noncontrolling interests, convertible debt
instruments that may be settled in cash upon conversion, and
share-based payment transactions that are participating securities
adopted by the company effective January 1, 2009. Financing
Activity During the quarter, the company repaid $44.0 million in
mortgages, which were scheduled to mature in January 2010, with
proceeds from the company's unsecured line of credit and utilized
cash flow from operations, in part, to pay down the amounts
outstanding under the company's unsecured line of credit. The net
effect of this financing activity reduced the company's
consolidated indebtedness to $1.346 billion, down from $1.363
billion at the end of the previous quarter and down from $1.538
billion as of September 30, 2008. At September 30, 2009, the
company's debt to total assets ratio was 40.9%, the lowest level
for this measure since September 30, 2006, with approximately 87.3%
of the company's consolidated debt bearing interest at fixed rates
or subject to interest rate hedges. The company's consolidated debt
as of September 30, 2009 included $321.1 million in outstanding
borrowings under the company's $600 million unsecured line of
credit, with a weighted-average effective interest rate of 1.35% at
quarter end. On September 4, 2009, BioMed entered into equity
distribution agreements with three sales agents under which the
company may offer and sell shares of its common stock having an
aggregate offering price of up to $120.0 million over time. As of
September 30, 2009, no shares had been issued under any of the
equity distribution agreements. Portfolio Update During the quarter
ended September 30, 2009, the company executed eleven leasing
transactions, representing approximately 272,000 square feet,
including eight new leases totaling approximately 229,000 square
feet. Three leases, totaling approximately 43,000 square feet, were
amended to extend their terms. During the quarter, the company
terminated leases totaling approximately 276,000 square feet. As of
September 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. As of September 30,
2009, the company's operating portfolio was approximately 76%
leased to 126 tenants. The company's portfolio included the
following as of September 30, 2009: Rentable Square Feet --------
Operating portfolio 10,085,481 Redevelopment properties 154,341
Development properties 280,000 ------- Total portfolio 10,519,822
---------- Land parcels 1,352,000 --------- Total proforma
portfolio 11,871,822 ========== Earnings Guidance Based on the
results of the third quarter, the company has revised its 2009
earnings guidance. The company's revised 2009 guidance for net
income per diluted share is based on a weighted average share count
of 101,290,000 for the fourth quarter of 2009 and a weighted
average share count of 94,924,000 for the full year 2009. The
revised 2009 guidance for FFO per diluted share, which assumes FFO
per diluted share in the fourth quarter of approximately $0.29 to
$0.31, is set forth and reconciled on an annual basis below. 2009
(Low - High) Projected net income per diluted share available to
common stockholders $0.48 - $0.50 Add: Noncontrolling interests in
operating partnership $0.02 Real estate depreciation and
amortization $1.16 Projected FFO per diluted share (1) $1.66 -
$1.68 (1) Utilizes the full year weighted average share count. The
company's initial 2010 guidance for net income per diluted share
and FFO per diluted share is set forth and reconciled below. 2010
(Low - High) Projected net income per diluted share available to
common stockholders $0.23 - $0.33 Add: Noncontrolling interests in
operating partnership $0.01 Real estate depreciation and
amortization $1.01 Projected FFO per diluted share $1.25 - $1.35
Consistent with the 2009 guidance, the company's 2010 guidance does
not include the impact of potential future development and
acquisition activities. 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 and webcast at 10:00 a.m. Pacific Time (1:00 p.m.
Eastern Time) on Thursday, October 29, 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
web cast at the Investor Relations section of the company's web
site at http://www.biomedrealty.com/ and at
http://www.earnings.com/, which will include an online slide
presentation to accompany the call, or live by calling 866.730.5763
(domestic) or 857.350.1587 (international) with call ID number
77837912. 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, October 29, 2009
until midnight Pacific Time on Tuesday, November 3, 2009 by calling
888.286.8010 (domestic) or 617.801.6888 (international) and using
access code 45309153. 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) September 30, December 31, 2009 2008
--------------- ------------- (Unaudited) ASSETS Investments in
real estate, net $2,978,701 $2,960,429 Investments in
unconsolidated partnerships 47,747 18,173 Cash and cash equivalents
30,279 21,422 Restricted cash 15,974 7,877 Accounts receivable, net
5,482 9,417 Accrued straight-line rents, net 75,489 58,138 Acquired
above-market leases, net 3,368 4,329 Deferred leasing costs, net
85,926 101,519 Deferred loan costs, net 7,794 9,754 Other assets
43,051 38,256 ------ ------ Total assets $3,293,811 $3,229,314
========== ========== LIABILITIES AND EQUITY Mortgage notes
payable, net $671,693 $353,161 Secured construction loan - 507,128
Secured term loan 250,000 250,000 Exchangeable senior notes, net
103,524 122,043 Unsecured line of credit 321,124 108,767 Security
deposits 7,187 7,623 Dividends and distributions payable 15,383
32,445 Accounts payable, accrued expenses, and other liabilities
71,389 66,821 Derivative instruments 15,948 126,091 Acquired
below-market leases, net 12,344 17,286 ------ ------ Total
liabilities 1,468,592 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 September 30, 2009 and December 31, 2008 222,413
222,413 Common stock, $.01 par value, 150,000,000 and 100,000,000
shares authorized, 98,203,176 and 80,757,421 shares issued and
outstanding at September 30, 2009 and December 31, 2008,
respectively 982 808 Additional paid-in capital 1,833,898 1,661,009
Accumulated other comprehensive loss (88,894) (112,126) Dividends
in excess of earnings (154,045) (146,536) --------- --------- Total
stockholders' equity 1,814,354 1,625,568 Noncontrolling interests
10,865 12,381 ------ ------ Total equity 1,825,219 1,637,949
--------- --------- Total liabilities and equity $3,293,811
$3,229,314 ========== ========== Financial information for the
current and, where applicable, prior periods has been presented to
reflect the application of new accounting guidance on
noncontrolling interests, convertible debt instruments that may be
settled in cash upon conversion, and share-based payment
transactions that are participating securities adopted by the
company effective January 1, 2009. BIOMED REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF INCOME (In thousands, except share data)
(Unaudited) For the Three Months For the Nine Months Ended
September 30, Ended September 30, -------------------
------------------- 2009 2008 2009 2008 ---- ---- ---- ----
(Revised) (Revised) Revenues: Rental $68,472 $59,381 $202,608
$163,946 Tenant recoveries 19,240 20,911 57,510 53,297 Other income
5,251 519 12,876 1,697 ----- --- ------ ----- Total revenues 92,963
80,811 272,994 218,940 ------ ------ ------- ------- Expenses:
Rental operations 18,726 17,027 55,539 44,345 Real estate taxes
8,233 6,763 23,079 16,948 Depreciation and amortization 30,953
21,506 82,767 58,525 General and administrative 5,956 4,589 16,363
16,428 ----- ----- ------ ------ Total expenses 63,868 49,885
177,748 136,246 ------ ------ ------- ------- Income from
operations 29,095 30,926 95,246 82,694 Equity in net loss of
unconsolidated partnerships (1,118) (208) (1,884) (338) Interest
income 62 110 226 370 Interest expense (19,614) (12,855) (44,567)
(29,036) (Loss)/gain on derivative instruments (14) (726) 289 (726)
Gain on extinguishment of debt - - 6,152 - --- --- ----- --- Net
income 8,411 17,247 55,462 52,964 Net income attributable to
noncontrolling interests (108) (570) (1,458) (1,771) ----- -----
------- ------- Net income attributable to Company 8,303 16,677
54,004 51,193 ----- ------ ------ ------ Preferred stock dividends
(4,241) (4,241) (12,722) (12,722) ------- ------- -------- --------
Net income available to common stockholders $4,062 $12,436 $41,282
$38,471 ====== ======= ======= ======= Net income per share
available to common stockholders: Basic and diluted earnings per
share $0.04 $0.17 $0.46 $0.55 ===== ===== ===== =====
Weighted-average common shares outstanding: Basic 97,315,601
71,513,333 88,754,885 68,995,174 ========== ========== ==========
========== Diluted 101,289,458 75,223,818 92,863,088 72,696,043
=========== ========== ========== ========== Financial information
for the current and, where applicable, prior periods has been
presented to reflect the application of new accounting guidance on
noncontrolling interests, convertible debt instruments that may be
settled in cash upon conversion, and share-based payment
transactions that are participating securities adopted by the
company effective January 1, 2009. BIOMED REALTY TRUST, INC. FUNDS
FROM OPERATIONS (In thousands, except share data) (Unaudited) Three
Months Ended Nine Months Ended September 30, September 30,
------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ----
(Revised) (Revised) Net income available to common stockholders
$4,062 $12,436 $41,282 $38,471 Adjustments: Noncontrolling
interests in operating partnership 122 559 1,502 1,767 Depreciation
and amortization - minority interest on consolidated joint ventures
(20) (8) (58) (25) Depreciation and amortization - real estate only
30,953 21,506 82,767 58,525 Depreciation and amortization - joint
ventures share 662 524 1,986 1,425 --- --- ----- ----- Funds from
operations available to common shares and Units $35,779 $35,017
$127,479 $100,163 ======= ======= ======== ======== Funds from
operations per share - diluted $0.35 $0.47 $1.37 $1.38 ===== =====
===== ===== Weighted-average common shares and Units outstanding -
diluted 101,289,458 75,223,818 92,863,088 72,696,043 ===========
========== ========== ========== Financial information for the
current and, where applicable, prior periods has been presented to
reflect the application of new accounting guidance on
noncontrolling interests, convertible debt instruments that may be
settled in cash upon conversion, and share-based payment
transactions that are participating securities adopted by the
company effective January 1, 2009. 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.
http://www.newscom.com/cgi-bin/prnh/20091005/BIOMEDLOGO
http://photoarchive.ap.org/ 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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