BioMed Realty Trust Reports First Quarter 2008 Financial Results

SAN DIEGO, April 30 /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 financial results for the first
quarter ended March 31, 2008.
Highlights:

-- Funds from operations (FFO) for the quarter were $31.3 million, or
$0.46 per diluted share

-- Increased quarterly common stock dividend by 8.1% to $0.335 per share,
equivalent to an annualized common stock dividend of $1.34 per share

-- Executed a long-term lease for 90,000 square feet with Revance
Therapeutics, Inc. at the Pacific Research Center, marking the
company's first life science tenant at the Pacific Research Center,
located in the San Francisco market

-- Acquired the 500 Fairview Avenue property, an approximately
22,000 square foot building in Seattle, Washington that is fully leased
to the State of Washington and targeted for future redevelopment as
laboratory/office space

-- Entered into a $245.0 million secured construction loan facility
through our joint venture with Prudential Real Estate Investors, at an
initial interest rate of reserve adjusted LIBOR plus a spread of
150 basis points, to fund the remaining anticipated cost to complete
construction at our 650 East Kendall Street property

-- Extended the term of the secured acquisition and interim loan facility
of our joint venture with Prudential Real Estate Investors to April 3,
2009

"We delivered yet another strong quarter of financial results in the first
quarter. Our operating performance was solid and we are making good progress
in our development and redevelopment pipeline, and steady progress in our
leasing program. We remain cautiously optimistic that the limited correlation
between the currently volatile credit markets and the long-term demand for
research in the life science industry will allow us to continue our stable
growth through 2008 and beyond," commented Alan D. Gold, President and Chief
Executive Officer of BioMed Realty Trust.
First Quarter 2008 Financial Results
Rental revenues for the quarter were $50.3 million, representing a
6.0% increase versus the first quarter of 2007. Same property net operating
income increased 4.9% on a cash basis for the first quarter of 2008 compared
to the first quarter of 2007.
Total revenues for the quarter were $67.4 million, compared to
$68.8 million in the first quarter of 2007. Total revenues, net income and
FFO for the first quarter of 2007 included the effect of a $4.8 million lease
termination fee (or approximately $0.07 per diluted share) related to the
company's Elliott Avenue property. Net income available to common
stockholders for the quarter was $12.6 million, or $0.19 per diluted share,
compared to $16.0 million, or $0.25 per diluted share, in the first quarter of
2007.
FFO during the quarter was to $31.3 million, compared to $34.2 million in
the comparable period in 2007. FFO per diluted share was $0.46 for the first
quarter of 2008 versus $0.50 in the first quarter of 2007.
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.
Financing Activity
On February 13, 2008, the company's joint venture with Prudential Real
Estate Investors entered into a secured construction loan facility with
Wachovia Bank, National Association and other lenders to provide borrowings of
up to approximately $245.0 million in connection with the construction of
650 East Kendall Street, an approximately 280,000 square foot Class A
laboratory/office building located in East Cambridge, Massachusetts. Proceeds
from the secured construction loan were used in part to repay a portion of the
joint venture's secured acquisition and interim loan facility and will also be
used to fund the balance of the anticipated cost to complete construction of
the project. The secured construction loan initially bears interest at a
floating rate equal to reserve adjusted LIBOR plus a spread of 150 basis
points. The secured construction loan has a maturity date of August 13, 2010
and is secured by the 650 East Kendall Street property and related collateral.
On February 19, 2008, the company's joint venture with Prudential Real
Estate Investors extended the term of its secured acquisition and interim loan
facility by one year to April 3, 2009, with no additional changes to the
pricing or terms of the facility.
As of March 31, 2008, the company's consolidated debt included fixed-rate
mortgage indebtedness with an aggregate outstanding principal amount of
$377.7 million, including $10.3 million of debt premium, and a
weighted-average effective interest rate of 5.5% at quarter-end; the company's
$250 million secured term loan, with a weighted-average effective interest
rate of 4.8% at quarter-end; $175 million aggregate principal amount of
4.50% exchangeable senior notes due 2026; $310.7 million in outstanding
borrowings under the company's $600 million unsecured revolving line of
credit, with a weighted-average effective interest rate of 4.1% at
quarter-end; and $457.6 million in outstanding borrowings under the company's
acquisition and construction loan secured by the Center for Life Science |
Boston property, with a weighted-average effective interest rate of 4.2% at
quarter-end. The company's debt to total capitalization ratio was 45.5% at
March 31, 2008.
After the quarter's end, on April 22, 2008, the company completed the sale
of 6,129,000 shares of common stock at $25.50 per share, resulting in gross
offering proceeds of approximately $156.3 million.
"The ability of our joint venture with Prudential Real Estate Investors to
secure $245.0 million at reserve adjusted LIBOR plus a 150 basis point spread
is a testament to the strength of the joint venture, our proven ability to
execute on our business model and the world-class quality of the assets we are
developing through the joint venture. Coupling this financing with the
extension of our joint venture's existing facility to April 2009 and the
raising of approximately $156.3 million in gross proceeds in our April 2008
follow-on public offering, we were able to further enhance what was already a
very solid financial position," commented Kent Griffin, Chief Financial
Officer of BioMed Realty Trust.
Portfolio Update
During the quarter, the company acquired the 500 Fairview Avenue property,
an approximately 22,000 square foot building which is fully leased to the
State of Washington and targeted for future redevelopment as laboratory/office
space, located adjacent to the company's 530 Fairview Avenue property in
Seattle, Washington.
As of March 31, 2008, BioMed Realty Trust owned or had interests in
112 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 was comprised of the following, with
its operating portfolio 93.2% leased to 113 tenants, as of March 31, 2008:

Rentable Square Feet
Operating portfolio 6,613,665
Repositioning and redevelopment properties 1,863,817
Construction in progress 1,941,000
Total portfolio 10,418,482

Land parcels 1,367,000
Total proforma portfolio 11,785,482

Quarterly Distributions

BioMed Realty Trust's board of directors previously declared a first
quarter 2008 dividend of $0.335 per share of common stock, an 8.1% increase
over the previous quarterly dividend of $0.31 per share, and a dividend of
$0.46094 per share of the company's 7.375% Series A Cumulative Redeemable
Preferred Stock for the period from January 16, 2008 through April 15, 2008.
Earnings Guidance
To reflect the impact of the company's common stock offering of
6,129,000 shares completed on April 22, 2008, the company has revised
2008 guidance for net income per diluted share and FFO per diluted share as
set forth and reconciled below.

2008
(Low - High)
Projected net income per diluted share available
to common stockholders $0.70 - 0.78
Add:
Minority interest in operating partnership $0.03
Real estate depreciation and amortization $1.10
Projected FFO per diluted share $1.83 - 1.91

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,
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 are available in the Investor
Relations section of the company's web site at www.biomedrealty.com.
Teleconference and Web Cast
BioMed Realty Trust will conduct a conference call and audio web cast at
10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) Thursday, May 1, 2008 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 www.earnings.com, or live by calling
(866) 314-4483 (domestic) or (617) 213-8049 (international) with call ID
number 39235728. The call will be archived for 30 days on both web sites. A
telephone playback of the conference call will also be available from
3:00 p.m. Pacific Time on Thursday, May 1, 2008 through midnight Pacific Time
on Monday, May 5, 2008 by calling (888) 286-8010 (domestic) or (617) 801-6888
(international) and using access code 64617789.
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(R). 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 Realty Trust owns or has
interests in 69 properties, representing 112 buildings with approximately
10.4 million rentable square feet, including approximately 1.9 million square
feet of development in progress. The company also owns undeveloped land
parcels adjacent to existing properties that it estimates can support up to
1.4 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 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 and the use of debt to fund acquisitions and developments;
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 and per share data)

March 31, December 31,
2008 2007
(Unaudited)

ASSETS
Investments in real estate, net $2,868,432 $2,805,983
Investment in unconsolidated partnerships 21,356 22,588
Cash and cash equivalents 19,383 13,479
Restricted cash 8,351 8,867
Accounts receivable, net 4,716 4,457
Accrued straight-line rents, net 40,682 36,415
Acquired above-market leases, net 5,374 5,745
Deferred leasing costs, net 112,334 116,491
Deferred loan costs, net 14,554 15,567
Other assets 30,767 27,676
Total assets $3,125,949 $3,057,268

LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage notes payable, net $377,675 $379,680
Secured construction loan 457,628 425,160
Secured term loan 250,000 250,000
Exchangeable senior notes 175,000 175,000
Unsecured line of credit 310,747 270,947
Security deposits 7,326 7,090
Dividends and distributions payable 27,385 25,596
Accounts payable, accrued expenses, and other
liabilities 134,751 95,871
Acquired below-market leases, net 22,199 23,708
Total liabilities 1,762,711 1,653,052
Minority interests 16,690 17,280
Stockholders' equity:
Preferred stock 222,413 222,413
Common stock 656 656
Additional paid-in capital 1,279,852 1,277,770
Accumulated other comprehensive loss (54,824) (21,762)
Dividends in excess of earnings (101,549) (92,141)
Total stockholders' equity 1,346,548 1,386,936
Total liabilities and stockholders'
equity $3,125,949 $3,057,268

BIOMED REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)

For the Three Months
Ended March 31,
2008 2007
(Unaudited)
Revenues:
Rental $50,342 $47,508
Tenant recoveries 16,582 16,510
Other income 434 4,780
Total revenues 67,358 68,798

Expenses:
Rental operations 13,865 13,115
Real estate taxes 5,269 5,916
Depreciation and amortization 17,687 17,254
General and administrative 6,194 5,343
Total expenses 43,015 41,628
Income from operations 24,343 27,170
Equity in net (loss)/income of
unconsolidated partnerships (172) 22
Interest income 155 231
Interest expense (6,937) (6,852)
Income from continuing operations before
minority interests 17,389 20,571
Minority interests in continuing operations
of consolidated partnerships 8 --
Minority interests in continuing operations
of operating partnership (589) (699)
Income from continuing operations 16,808 19,872
Income from discontinued operations before
gain on sale of assets and minority interests -- 387
Minority interests attributable to
discontinued operations -- (16)
Income from discontinued operations -- 371
Net income 16,808 20,243
Preferred stock dividends (4,241) (4,194)
Net income available to common
stockholders $12,567 $16,049

Income from continuing operations per share
available to common stockholders:
Basic and diluted earnings per share $0.19 $0.24

Net income per share available to common
stockholders:
Basic and diluted earnings per share $0.19 $0.25
Weighted-average common shares outstanding:
Basic 65,350,512 65,289,950
Diluted 68,429,903 68,231,124

BIOMED REALTY TRUST, INC.
FUNDS FROM OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

The following table provides the calculation of our FFO and a
reconciliation to net income available to common stockholders (in thousands,
except per share amounts):

For the Three Months
Ended March 31,
2008 2007

Net income available to common stockholders $12,567 $16,049
Adjustments:
Minority interests in operating partnership 589 715
Depreciation and amortization --
unconsolidated partnerships 451 20
Depreciation and amortization --
consolidated entities-discontinued operations -- 137
Depreciation and amortization --
consolidated entities-continuing operations 17,687 17,254
Depreciation and amortization -- allocable
to minority interest of consolidated joint
ventures (8) --
Funds from operations available to common
shares and partnership and LTIP units $31,286 $34,175
Funds from operations per share -- diluted $0.46 $0.50
Weighted-average common shares outstanding
-- diluted 68,429,903 68,231,124

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.
SOURCE BioMed Realty Trust, Inc.

Kent Griffin, Chief Financial Officer of BioMed Realty Trust, Inc.,
+1-858-485-9840