Oct. 28, 2009 (PR Newswire) -- 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.
