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(R), 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(R) 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(R) 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.