BioMed Realty Trust Inc - FORM 8-K - EX-99.2 - SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Attached files

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8-K - FORM 8-K - BioMed Realty Trust Inc	d342235d8k.htm
EX-99.1 - PRESS RELEASE - BioMed Realty Trust Inc	d342235dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

MARCH 31, 2012


BioMed Realty Trust, Inc.	Corporate Communications Contact	www.biomedrealty.com
17190 Bernardo Center Drive	Rick Howe	(858) 485-9840 phone
San Diego, CA 92128	Senior Director, Corporate Communications	(858) 485-9843 fax
	richard.howe@biomedrealty.com

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TABLE OF CONTENTS

MARCH 31, 2012


	Page			Page
First Quarter Highlights		3	Debt Maturities		19
Investor Information		4	Common and Preferred Stock Data		20
Equity Research Coverage		5	Market Summary		21
Financial and Operating Highlights		6	Property Listing - Consolidated Portfolio		22-23
Capitalization Summary		7	Redevelopment and Development		24
Portfolio Summary		8	Property Listing - Unconsolidated Partnerships		25
Consolidated Balance Sheets		9	Lease Expirations		26
Consolidated Statements of Operations		10	Expirations by Market		27
Balance Sheet / Operations Statement Detail		11	10 Largest Tenants		28
FFO		12	Same Property Analysis		29
AFFO		13	Acquisitions		30
Reconciliation of EBITDA		14	Leasing Activity		31
Reconciliation of Net Operating Income		15	Tenant Improvements, Leasing Commissions,
Interest Expense		16	and Tenant Concessions		32
Coverage Ratios		17	Non-GAAP Financial Measure Definitions		33
Debt Summary		18	Definitions		34

This Supplemental Operating and Financial Data package 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; reductions in asset valuations and related impairment charges; 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 maintain the company's investment grade credit ratings with the ratings agencies; 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.

All dollar amounts shown in this report are unaudited.

This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to buy securities of BioMed Realty Trust, Inc. Any offers to sell or solicitations to buy securities of BioMed Realty Trust, Inc. shall be made only by means of a prospectus approved for that purpose.

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FIRST QUARTER HIGHLIGHTS

MARCH 31, 2012

•

Generated total revenues for the quarter of $120.0 million, up 14.1% from $105.2 million in the same period in 2011 and the highest in the company's history. Rental revenues for the quarter increased by 14.5% to $91.5 million from $79.9 million in the same period in 2011, the highest in the company's history for the ninth consecutive quarter.

•

Increased the current operating portfolio to approximately 90.7% leased at quarter end, on a weighted-average basis, as the result of executing 22 leasing transactions representing approximately 466,300 square feet, including:

•

16 new leases totaling approximately 395,400 square feet.

•

a new 219,255 square foot lease with a private biotech company at the company's multi-tenant Pacific Research Center campus in Newark, California;

•

a new 64,483 square foot lease with Omeros Corporation at the company's 201 Elliott Avenue property in Seattle, Washington; and

•

three new leases with life science tenants totaling 30,232 square feet at Fresh Pond Research Park in Cambridge, Massachusetts

•

Six lease renewals totaling approximately 70,900 square feet.

•

Increased consolidated net operating income on a cash basis for the quarter by 15.6%, to $83.4 million from $72.1 million in the same period in 2011. Same property net income on a cash basis increased for the period by 4.3% and the same property leased percentage by 430 basis points as compared to the same period in 2011.

•

Acquired Cambridge Place, comprising three buildings and a total of approximately 286,900 square feet of space in Cambridge, Massachusetts for $119.0 million, excluding closing costs. In aggregate, the property was approximately 80% leased at acquisition on a weighted-average basis.

•

Closed a new $400.0 million senior unsecured term loan facility which matures on March 30, 2017.

•

Increased funds from operations (FFO) for the quarter to $50.2 million ($0.30 per diluted share), as compared to $42.1 million ($0.29 per diluted share) in the first quarter of 2011.

•

Increased adjusted funds from operations (AFFO) for the quarter to $50.0 million ($0.30 per diluted share), as compared to $43.0 million ($0.30 per diluted share) in the first quarter of 2011.

•

Reported a net loss available to common stockholders for the first quarter of $1.3 million, or $0.01 per diluted share, which includes a $4.6 million non-cash impairment charge ($0.03 per diluted share).

•

Increased dividend to $0.215 per share, or an annualized rate of $0.86 per share, a 7.5% increase over the fourth quarter 2011 dividend.

About BioMed Realty Trust, Inc.

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 properties comprising approximately 12.5 million rentable square feet. The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, San Diego, Maryland, New York/New Jersey, Pennsylvania and Seattle, which have well-established reputations as centers for scientific research. Additional information is available at www.biomedrealty.com.

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INVESTOR INFORMATION

MARCH 31, 2012


Company Information
Corporate Headquarters	Trading Symbols	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	BNY Mellon Shareowner Services	New York Stock Exchange
San Diego, CA 92128	BMR PrA	480 Washington Boulevard
(858) 485-9840		Jersey City, NJ 07310-1900
(858) 485-9843 (fax)		(877) 296-3711

Please visit our corporate website at:	www.biomedrealty.com

Board of Directors	Senior Management
Alan D. Gold	Alan D. Gold	Karen A. Sztraicher	Bruce D. Steel
Chairman	Chairman and Chief Executive Officer	Senior Vice President,	Managing Director,
Barbara R. Cambon	R. Kent Griffin, Jr.	Asset Management	BioMed Ventures
	President and Chief Operating Officer	John P. Bonanno	Stephen A. Willey
Edward A. Dennis, Ph.D.	Gary A. Kreitzer	Senior Vice President,	Vice President,
	Executive Vice President,	Leasing & Development	Chief Accounting Officer
Richard I. Gilchrist	General Counsel and Director	Jonathan P. Klassen	Janice L. Kameir
	Matthew G. McDevitt	Vice President,	Vice President,
Gary A. Kreitzer	Executive Vice President,	Assistant General Counsel and	Human Resources
	Real Estate	Secretary	Robert M. Sistek
Theodore D. Roth	Greg N. Lubushkin	Kevin M. Simonsen	Vice President,
	Chief Financial Officer	Vice President,	Finance
M. Faye Wilson		Real Estate Counsel

Tentative Schedule for Quarterly Results
Second Quarter 2012	August 1, 2012
Third Quarter 2012	October 31, 2012
Fourth Quarter 2012	February 13, 2013
First Quarter 2013	May 1, 2013

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EQUITY RESEARCH COVERAGE

MARCH 31, 2012


BMO Capital Markets	Richard C. Anderson / Mark Lutenski	(212) 885-4180 / (212) 885-4197	richard.anderson@bmo.com / mark.lutenski@bmo.com

Cantor Fitzgerald	Sri Nagarajan / Evan Smith	(212) 915-1223 / (212) 915-1220	snagarajan@cantor.com / evan.smith@cantor.com

Cowen and Company	James Sullivan / Michael Gorman	(646) 562-1380 / (646) 562-1381	james.sullivan@cowen.com / michael.gorman@cowen.com

Green Street Advisors	John Stewart / John Hornbeak	(949) 640-8780	jstewart@greenst.com / jhornbeak@greenst.com

Jefferies & Co.	Omotayo Okusanya	(212) 336-7076	tokusanya@jefferies.com

KeyBanc Capital Markets	Jordan Sadler / Craig Mailman	(917) 368-2280 / (917) 368-2316	jsadler@keybanccm.com / cmailman@keybanccm.com

Macquarie Capital (USA)	Robert Stevenson / Nicholas Yulico	(212) 231-8068 / (212) 231-8028	rob.stevenson@macquarie.com / nicholas.yulico@macquarie.com

Morgan Stanley	Paul Morgan / Chris Caton	(415) 576-2627 / (415) 576-2637	paul.b.morgan@morganstanley.com / chris.caton@morganstanley.com

Raymond James	Paul D. Puryear / William A. Crow	(727) 567-2253 / (727) 567-5294	paul.puryear@raymondjames.com / bill.crow@raymondjames.com

RBC Capital Markets	David Rodgers / Mike Carroll	(440) 715-2647 / (440) 715-2649	dave.rodgers@rbccm.com / michael.carroll@rbccm.com

Robert W. Baird & Co.	David Aubuchon / Justin Webb	(314) 445-6520 / (973) 795-1255	daubuchon@rwbaird.com / jpelham-webb@rwbaird.com

Stifel, Nicolaus & Company, Inc.	John W. Guinee / Erin Aslakson	(443) 224-1307 / (443) 224-1350	jwguinee@stifel.com / aslaksone@stifel.com

UBS Securities	Ross T. Nussbaum	(212) 713-4760	ross.nussbaum@ubs.com

Wells Fargo Securities	Brendan Maiorana / Young Ku	(443) 263-6516 / (443) 263-6564	brendan.maiorana@wachovia.com / young.ku@wachovia.com

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FINANCIAL AND OPERATING HIGHLIGHTS

MARCH 31, 2012

(In thousands, except per share and ratio amounts)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Selected Operating Data
Total revenues	$	120,012		$	111,958		$	114,639		$	106,409		$	105,193
EBITDA (1)		66,485			71,980			65,530			64,362			62,122
Adjusted EBITDA (1)		74,658			71,702			73,504			69,496			66,470
Net operating income - cash basis (2)		83,432			75,140			72,484			71,861			72,146
General and administrative expense		8,614			9,169			7,682			6,694			7,421
Acquisition related expenses		633			309			136			334			320
Interest expense, net		22,219			21,725			22,887			23,378			21,191
Capitalized interest		2,360			2,260			1,996			1,817			1,494
Operating margin (3)		69.4	%		71.2	%		69.2	%		70.4	%		70.2	%
General and administrative expense / Total revenues		7.2	%		8.2	%		6.7	%		6.3	%		7.1	%
Net (loss)/income available to common stockholders		(1,339	)		12,058			4,765			3,638			5,530
Net (loss)/income per share - diluted	$	(0.01	)	$	0.08		$	0.03		$	0.03		$	0.04
FFO - diluted (4)		50,197			46,880			43,778			42,114			42,073
FFO per share - diluted (4)	$	0.30		$	0.30		$	0.30		$	0.29		$	0.29
AFFO - diluted (4)		50,038			43,938			42,547			38,277			42,977
AFFO per share - diluted (4)	$	0.30		$	0.28		$	0.29		$	0.27		$	0.30
Dividend per share - common stock	$	0.215		$	0.20		$	0.20		$	0.20		$	0.20
FFO payout ratio (5)		71.7	%		66.7	%		66.7	%		69.0	%		69.0	%
AFFO payout ratio (5)		71.7	%		71.4	%		69.0	%		74.1	%		66.7	%

(1)	For definitions and discussion of EBITDA and adjusted EBITDA, see page 33. For a quantitative reconciliation of the differences between adjusted EBITDA, EBITDA and net income available to common stockholders, see page 14.

(2)	For definitions and discussion of net operating income - cash basis, see page 15.

(3)	See page 15 for detail.

(4)	For definitions and discussion of FFO and AFFO, see page 33. For a quantitative reconciliation of the differences between FFO, AFFO and net income available to common stockholders, see pages 12 and 13.

(5)	See page 12 for detail of the FFO payout ratio and page 13 for detail of the AFFO payout ratio.

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CAPITALIZATION SUMMARY

MARCH 31, 2012

(In thousands, except per share and ratio amounts)


		3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Capitalization:
Total common shares outstanding			154,163			154,101			131,265			131,260			131,240
Total units outstanding (1)			2,957			2,980			2,980			2,980			2,989

Total common shares and units outstanding			157,120			157,081			134,245			134,240			134,229
Common share price at quarter end		$	18.98		$	18.08		$	16.57		$	19.24		$	19.02

Equity value at quarter end		$	2,982,134		$	2,840,033		$	2,224,441		$	2,582,770		$	2,553,027
Preferred stock at liquidation value			198,000			198,000			198,000			230,000			230,000
Consolidated debt			1,812,258			1,682,578			1,665,661			1,590,049			1,525,825

Total capitalization		$	4,992,392		$	4,720,611		$	4,088,102		$	4,402,819		$	4,308,852

Debt / Total assets			39.9	%		38.0	%		41.3	%		39.8	%		38.5	%
Debt / Total gross assets			36.0	%		34.5	%		37.4	%		36.2	%		35.3	%
Debt / Total capitalization			36.3	%		35.6	%		40.7	%		36.1	%		35.4	%
Coverage ratios (2):
Debt / Adjusted EBITDA			6.1			5.9			5.7			5.7			5.7
Interest coverage			3.8			3.6			3.5			3.3			3.4
Fixed charge coverage			3.0			2.8			2.8			2.5			2.6
Total consolidated debt:
Secured debt / Total gross assets			11.1	%		12.0	%		13.6	%		14.2	%		14.5	%
Floating rate debt / Total debt			23.5	%		15.9	%		13.0	%		7.6	%		3.3	%
Adjusted floating rate debt / Total debt (3)			12.5	%		—			—			—			—
Unencumbered real estate / Total real estate			75.2	%		73.7	%		69.9	%		69.0	%		68.1	%
Unencumbered CABR / Total CABR (4)			77.9	%		73.0	%		71.4	%		70.5	%		69.4	%
Unsecured line of credit capacity		$	723,090		$	481,090		$	526,100		$	591,000		$	661,200

Bond covenants (5):	Requirements
Total outstanding debt / Total assets	Must be £ 60%		37.2	%		35.7	%		38.5	%		37.4	%		36.5	%
Secured debt / Total assets	Must be £ 40%		11.5	%		12.5	%		13.9	%		14.6	%		15.0	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		3.2			3.1			2.9			2.8			2.7
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		299	%		323	%		293	%		312	%		327	%
Unencumbered assets / Unsecured debt - Notes due 2016	Must be ³ 150%		296	%		320	%		287	%		307	%		321	%

(1)	Includes both operating partnership (OP) and long term incentive plan (LTIP) units outstanding.

(2)	For discussion of coverage ratios, see page 33. See page 17 for the calculation of interest and fixed charge coverage ratios. See page 14 for calculation of Adjusted EBITDA.

(3)	Includes effect of interest rate swaps on the Company's unsecured senior term loan facility. See page 18 for more information.

(4)	For discussion of current annualized base rent (CABR), see page 21.

(5)

Calculated in accordance with the covenants contained in the indenture that governs the terms of the Company's unsecured senior notes due 2020 and supplemental and base indentures that govern the terms of the Company’s unsecured senior notes due 2016, which are included as exhibits to the Company’s Forms 8-K filed with the SEC on April 30, 2010 and March 31, 2011, respectively. The covenants for the unsecured senior notes due 2020 and unsecured senior notes due 2016 are identical, except that the unencumbered total asset value definition for the unsecured senior notes due 2020 includes investments in unconsolidated partnerships accounted for under the equity method of accounting, whereas the unencumbered total asset value definition for the unsecured senior notes due 2016 excludes such investments in unconsolidated partnerships.

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PORTFOLIO SUMMARY

MARCH 31, 2012


	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased % (1)
	(In thousands)
Stabilized (2)	$	2,926,809		89		6,998,513		99.2	%
Lease up (2)		1,012,110		43		3,311,419		66.1	%

Current operating portfolio		3,938,919		132		10,309,932		90.7	%
Long-term lease up (3)		330,337		10		1,389,517		58.7	%

Total operating portfolio	$	4,269,256		142		11,699,449		88.2	%


	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased % (1)
	(In thousands)
Redevelopment (4)	$	73,323		9		357,817		57.9	%
Unconsolidated partnership portfolio (5)		32,901		3		352,863		20.6	%
Development potential (4)		181,069		—		3,667,000		—

Total portfolio	$	4,556,549		154		16,077,129

(1)	Calculated based on gross book value for each asset multiplied by the percentage leased.

(2)	See pages 22-23 for detail of consolidated portfolio and page 34 for definitions of terms.

(3)	Includes Pacific Research Center properties comprising Pacific Industrial Center, Pacific Research Center North and Pacific Research Center South.

(4)	See page 24 for detail of the consolidated portfolio and page 34 for definitions of terms.

(5)	See page 25 for detail of the unconsolidated partnership portfolio.

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CONSOLIDATED BALANCE SHEETS

MARCH 31, 2012

(In thousands)


	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Assets
Investments in real estate, net	$	4,037,928		$	3,950,246		$	3,576,304		$	3,584,259		$	3,538,560
Investments in unconsolidated partnerships		32,901			33,389			67,383			55,313			56,287
Cash and cash equivalents		13,336			16,411			16,351			12,033			19,351
Accounts receivable, net		4,426			5,141			7,542			2,486			7,358
Accrued straight-line rents, net		134,371			130,582			123,564			116,896			110,981
Deferred leasing costs, net		164,002			157,255			116,811			123,299			121,658
Other assets		158,285			135,521			121,074			98,564			104,885

Total assets	$	4,545,249		$	4,428,545		$	4,029,029		$	3,992,850		$	3,959,080

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	559,111		$	587,844		$	603,406		$	623,121		$	629,640
Exchangeable senior notes		180,000			180,000			199,800			199,706			199,613
Unsecured senior notes, net		645,749			645,581			645,412			645,246			645,081
Unsecured senior term loan		400,000			—			—			—			—
Unsecured line of credit		26,000			268,000			216,100			121,200			51,000
Accounts payable, accrued expenses and other liabilities		156,669			134,924			136,408			129,715			140,583

Total liabilities		1,967,529			1,816,349			1,801,126			1,718,988			1,665,917
Equity:
Stockholders’ equity:
Preferred stock		191,469			191,469			191,469			222,413			222,413
Common stock		1,541			1,541			1,313			1,313			1,312
Additional paid-in capital		2,773,248			2,773,994			2,373,652			2,371,762			2,369,922
Accumulated other comprehensive loss, net		(58,882	)		(60,138	)		(61,912	)		(66,880	)		(68,908	)
Dividends in excess of earnings		(339,243	)		(304,759	)		(285,996	)		(264,507	)		(241,894	)

Total stockholders’ equity		2,568,133			2,602,107			2,218,526			2,264,101			2,282,845
Noncontrolling interests		9,587			10,089			9,377			9,761			10,318

Total equity		2,577,720			2,612,196			2,227,903			2,273,862			2,293,163

Total liabilities and equity	$	4,545,249		$	4,428,545		$	4,029,029		$	3,992,850		$	3,959,080

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CONSOLIDATED STATEMENTS OF OPERATIONS

MARCH 31, 2012

(In thousands, except share and per share data)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Revenues:
Rental	$	91,475		$	84,854		$	83,549		$	81,145		$	79,905
Tenant recoveries		28,453			26,098			26,603			24,723			24,541
Other revenue		84			1,006			4,487			541			747

Total revenues		120,012			111,958			114,639			106,409			105,193

Expenses:
Rental operations		36,729			31,899			33,876			31,298			31,073
Depreciation and amortization		44,934			36,670			36,203			35,696			33,749
General and administrative		8,614			9,169			7,682			6,694			7,421
Acquisition related expenses		633			309			136			334			320

Total expenses		90,910			78,047			77,897			74,022			72,563

Income from operations		29,102			33,911			36,742			32,387			32,630
Equity in net loss of unconsolidated partnerships		(355	)		(640	)		(735	)		(466	)		(648	)
Interest expense, net		(22,219	)		(21,725	)		(22,887	)		(23,378	)		(21,191	)
Other income/(expense)		174			4,244			(4,259	)		(691	)		(1,054	)

Income from continuing operations		6,702			15,790			8,861			7,852			9,737
(Loss)/income from discontinued operations		(4,420	)		163			76			95			141

Net income		2,282			15,953			8,937			7,947			9,878
Net loss/(income) attributable to noncontrolling interests		30			(244	)		(106	)		(68	)		(107	)

Net income attributable to the Company		2,312			15,709			8,831			7,879			9,771
Preferred stock dividends		(3,651	)		(3,651	)		(3,901	)		(4,241	)		(4,241	)
Cost on redemption of preferred stock		—			—			(165	)		—			—

Net (loss)/income available to common stockholders	$	(1,339	)	$	12,058		$	4,765		$	3,638		$	5,530

Income from continuing operations per share atrributable to common stockholders:
Basic and diluted earnings per share	$	0.02		$	0.08		$	0.03		$	0.03		$	0.04

(Loss)/income from discontinued operations per share atrributable to common stockholders:
Basic and diluted earnings per share	$	(0.03	)	$	0.00		$	0.00		$	0.00		$	0.00

Net (loss)/income per share atrributable to common stockholders:
Basic and diluted earnings per share	$	(0.01	)	$	0.08		$	0.03		$	0.03		$	0.04

Weighted-average common shares outstanding:
Basic		152,659,258			140,909,345			129,872,349			129,858,098			129,771,733

Diluted		155,625,204			143,889,324			132,852,328			132,840,932			132,764,842

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

MARCH 31, 2012

(In thousands)


	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Restricted cash	$	4,830		$	5,662		$	6,330		$	6,614		$	6,687
Real estate held for sale		28,000			—			—			—			—
Acquired above-market leases, net		23,670			26,318			24,015			26,340			28,069
Acquired below-market ground lease, net		11,542			11,600			—			—			—
Deferred loan costs, net		18,445			16,253			17,254			12,325			13,473
Lease incentives, net		24,778			22,951			22,818			23,395			23,849
Other		47,020			52,737			50,657			29,890			32,807

Other assets	$	158,285		$	135,521		$	121,074		$	98,564		$	104,885

Security deposits	$	11,941		$	11,907		$	12,397		$	11,571		$	11,585
Dividends and distributions payable		37,431			35,067			30,500			31,089			31,086
Accounts payable, accrued expenses and other liabilities		100,689			81,441			86,658			79,274			88,116
Derivative instruments		289			—			—			580			2,231
Acquired below-market leases, net		6,319			6,509			6,853			7,201			7,565

Accounts payable, accrued expenses and other liabilities	$	156,669		$	134,924		$	136,408		$	129,715		$	140,583


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Rental operations expenses	$	24,673		$	20,888		$	23,082		$	21,049		$	20,459
Real estate taxes		12,056			11,011			10,794			10,249			10,614

Rental operations	$	36,729		$	31,899		$	33,876		$	31,298		$	31,073

Gain/(loss) on extinguishment of debt	$	182		$	51		$	(521	)	$	(249	)	$	(43	)
Gain on revaluation of acquired unconsolidated partnerships		—			4,679			—			—			—
Non-cash adjustment for marketable securities		—			(506	)		(3,802	)		(825	)		—
(Loss)/gain on derivative instruments		(8	)		20			64			383			(1,011	)

Other income/(expense)	$	174		$	4,244		$	(4,259	)	$	(691	)	$	(1,054	)

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FFO (1)

MARCH 31, 2012

(In thousands, except share, per share and ratio amounts)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net (loss)/income available to common stockholders	$	(1,339	)	$	12,058		$	4,765		$	3,638		$	5,530
Adjustments:
Impairment loss		4,552			—			—			—			—
Gain on revaluation of acquired unconsolidated partnerships		—			(4,679	)		—			—			—
Noncontrolling interests in operating partnership		(26	)		252			111			82			125
Depreciation & amortization - unconsolidated partnerships		323			826			945			944			921
Depreciation & amortization - consolidated entities		44,934			36,670			36,203			35,696			33,749
Depreciation & amortization - consolidated entities - discontinued operations		92			92			92			92			86
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(27	)		(27	)		(26	)		(26	)		(26	)

FFO - basic	$	48,509		$	45,192		$	42,090		$	40,426		$	40,385
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	50,197		$	46,880		$	43,778		$	42,114		$	42,073

FFO per share - basic	$	0.31		$	0.31		$	0.31		$	0.30		$	0.30

FFO per share - diluted (2)	$	0.30		$	0.30		$	0.30		$	0.29		$	0.29

Dividends and distributions declared per common share	$	0.215		$	0.20		$	0.20		$	0.20		$	0.20

FFO payout ratio		71.7	%		66.7	%		66.7	%		69.0	%		69.0	%

Weighted-average common shares and units outstanding diluted (3)		157,108,910			145,350,296			134,242,201			134,236,306			134,253,266
Dilutive effect of exchangeable senior notes due 2030 (2)		10,127,232			10,017,858			10,017,858			10,017,858			9,914,076

Weighted-average common shares and units outstanding diluted - FFO		167,236,142			155,368,154			144,260,059			144,254,164			144,167,342

(1)	For definitions and discussion of FFO see page 33.

(2)

The calculation of FFO per share diluted includes the assumed issuance of common stock pursuant to the exchange provision of the exchangeable senior notes due 2030, which is dilutive based on the “if converted” method for all periods presented since the original issuance in January 2010. Under the if converted method, if the add back of interest charges relating to the exchangeable senior notes due 2030 divided by the corresponding number of common shares issuable upon exchange is dilutive, the potentially issuable shares are included in the calculation of FFO per diluted share.

(3)

The three months ended March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011, and March 31, 2011 include 1,483,706, 1,460,972, 1,389,873, 1,395,374, and 1,488,424 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

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AFFO (1)

MARCH 31, 2012

(In thousands, except per share and ratio amounts)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO - diluted	$	50,197		$	46,880		$	43,778		$	42,114		$	42,073
Adjustments:
Recurring capital expenditures and second generation tenant improvements (2)		(4,629	)		(3,201	)		(4,114	)		(4,520	)		(2,045	)
Leasing commissions		(1,419	)		(1,192	)		(1,096	)		(1,140	)		(889	)
(Gain)/loss on extinguishment of debt		(182	)		(51	)		170			(112	)		(398	)
Loss/(gain) on derivative instruments		8			(20	)		(64	)		(383	)		1,011
Non-cash adjustment for marketable securities		—			506			3,802			825			—
Amortization of deferred interest costs		1,742			1,748			1,754			1,760			1,765
Amortization of deferred loan costs		1,234			1,019			1,125			1,153			1,058
Amortization of fair-value of debt acquired		(231	)		(327	)		(428	)		(427	)		(497	)
Amortization of debt discounts		168			170			260			259			141
Amortization of lease incentives		1,173			599			577			553			518
Depreciation included in general and administrative expense		442			387			435			392			386
Non-cash equity compensation		2,689			2,029			1,898			1,785			1,871
Cost on redemption of preferred stock		—			—			165			—			—
Straight line rents		(3,454	)		(6,701	)		(7,633	)		(5,948	)		(4,159	)
Share of unconsolidated partnership adjustments (3)		1			(10	)		(58	)		(9	)		42
Fair-value lease revenue		2,299			2,102			1,976			1,975			2,100

AFFO - diluted	$	50,038		$	43,938		$	42,547		$	38,277		$	42,977

AFFO per share - diluted	$	0.30		$	0.28		$	0.29		$	0.27		$	0.30

Dividends and distributions declared per common share	$	0.215		$	0.20		$	0.20		$	0.20		$	0.20

AFFO payout ratio		71.7	%		71.4	%		69.0	%		74.1	%		66.7	%

(1)	For definitions and discussion of AFFO see page 33.

(2)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. Excludes first generation tenant improvements. For definitions of recurring capital expenditures, first and second generation leases, see page 34.

(3)	Share of unconsolidated partnership adjustments includes the Company's share of amortization of deferred loan costs, lease incentives, straight line rents, and fair-value lease revenue.

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RECONCILIATION OF EBITDA (1)

MARCH 31, 2012

(In thousands)


	Three Months Ended
	3/31/12			12/31/11			9/30/11		6/30/11		3/31/11
Reconciliation of net (loss)/income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net (loss)/income available to common stockholders	$	(1,339	)	$	12,058		$	4,765	$	3,638	$	5,530
Interest expense, net		22,219			21,725			22,887		23,378		21,191
Interest expense - unconsolidated partnerships		256			609			638		614		645
Depreciation & amortization - consolidated entities		44,934			36,670			36,203		35,696		33,749
Depreciation & amortization - discontinued operations		92			92			92		92		86
Depreciation & amortization - unconsolidated partnerships		323			826			945		944		921

EBITDA		66,485			71,980			65,530		64,362		62,122
Noncontrolling interests		(30	)		244			106		68		107
Impairment loss		4,552			—			—		—		—
Preferred dividends		3,651			3,651			3,901		4,241		4,241
Cost on redemption of preferred stock		—			—			165		—		—
Non-cash adjustment for marketable securities		—			506			3,802		825		—
Gain on revaluation of acquired unconsolidated partnerships		—			(4,679	)		—		—		—

Adjusted EBITDA	$	74,658		$	71,702		$	73,504	$	69,496	$	66,470

(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 33.

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RECONCILIATION OF NET OPERATING INCOME (1)

MARCH 31, 2012

(In thousands, except ratio amounts)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Net income	$	2,282		$	15,953		$	8,937		$	7,947		$	9,878
Loss/(income) from discontinued operations		4,420			(163	)		(76	)		(95	)		(141	)
Equity in net loss of unconsolidated partnerships		355			640			735			466			648
Interest expense, net		22,219			21,725			22,887			23,378			21,191
Other (income)/expense		(174	)		(4,244	)		4,259			691			1,054

Income from operations		29,102			33,911			36,742			32,387			32,630
Depreciation and amortization		44,934			36,670			36,203			35,696			33,749
General and administrative		8,614			9,169			7,682			6,694			7,421
Acquisition related expenses		633			309			136			334			320

Consolidated net operating income	$	83,283		$	80,059		$	80,763		$	75,111		$	74,120

Revenues:
Rental	$	91,475		$	84,854		$	83,549		$	81,145		$	79,905
Tenant recoveries		28,453			26,098			26,603			24,723			24,541
Other revenue (2)		84			1,006			4,487			541			747

Total revenues		120,012			111,958			114,639			106,409			105,193
Expenses:
Rental operations		36,729			31,899			33,876			31,298			31,073

Consolidated net operating income	$	83,283		$	80,059		$	80,763		$	75,111		$	74,120

Consolidated net operating income - cash basis (3)	$	83,432		$	75,140		$	72,484		$	71,861		$	72,146

Operating margin (4)		69.4	%		71.2	%		69.2	%		70.4	%		70.2	%
Operating expense recovery (5)		77.5	%		81.8	%		78.5	%		79.0	%		79.0	%

(1)	For a definition and discussion of net operating income, see page 33.

(2)	Includes lease termination income.

(3)	Consolidated net operating income - cash basis is calculated as (consolidated net operating income - straight line rents - fair value lease revenue - lease incentive revenue - bad debt expense - other revenue).

(4)	Operating margin is calculated as ((rental revenues + tenant recovery revenues - rental operations) / (rental revenues + tenant recovery revenues)).

(5)	Operating expense recovery is calculated as (tenant recovery revenues / rental operations).

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INTEREST EXPENSE

MARCH 31, 2012

(In thousands)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Mortgage notes payable	$	10,275		$	10,520		$	10,776		$	11,130		$	11,377
Exchangeable senior notes		1,688			1,698			1,910			1,910			1,911
Unsecured senior notes		7,678			7,678			7,678			7,635			3,914
Unsecured senior term loan		42			—			—			—			—
Unsecured line of credit		1,973			1,479			1,364			479			1,371
Derivative instruments		10			—			444			1,296			1,645

Interest expense, net - cash basis	$	21,666		$	21,375		$	22,172		$	22,450		$	20,218

Non-cash interest expense
Amortization of fair-value of debt acquired		(231	)		(327	)		(428	)		(427	)		(497	)
Amortization of debt discounts		168			170			260			259			141
Amortization of deferred loan costs		1,234			1,019			1,125			1,153			1,058
Amortization of deferred interest costs		1,742			1,748			1,754			1,760			1,765
Capitalized interest		(2,360	)		(2,260	)		(1,996	)		(1,817	)		(1,494	)

Interest expense, net	$	22,219		$	21,725		$	22,887		$	23,378		$	21,191

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COVERAGE RATIOS (1)

MARCH 31, 2012

(In thousands, except ratio amounts)


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Interest coverage ratio
Adjusted EBITDA	$	74,658		$	71,702		$	73,504		$	69,496		$	66,470
Interest expense:
Interest expense, net		22,219			21,725			22,887			23,378			21,191
Interest expense - unconsolidated partnerships		256			609			638			614			645
Amortization of deferred interest costs		(1,742	)		(1,748	)		(1,754	)		(1,760	)		(1,765	)
Amortization of deferred loan costs		(1,234	)		(1,019	)		(1,125	)		(1,153	)		(1,058	)
Amortization of debt discounts		(168	)		(170	)		(260	)		(259	)		(141	)
Amortization of fair-value of debt acquired		231			327			428			427			497

Total interest expense	$	19,562		$	19,724		$	20,814		$	21,247		$	19,369

Interest coverage ratio		3.8			3.6			3.5			3.3			3.4

Fixed charge coverage ratio
Adjusted EBITDA	$	74,658		$	71,702		$	73,504		$	69,496		$	66,470
Fixed charges:
Interest expense, net		22,219			21,725			22,887			23,378			21,191
Interest expense - unconsolidated partnerships		256			609			638			614			645
Amortization of deferred interest costs		(1,742	)		(1,748	)		(1,754	)		(1,760	)		(1,765	)
Amortization of deferred loan costs		(1,234	)		(1,019	)		(1,125	)		(1,153	)		(1,058	)
Amortization of debt discounts		(168	)		(170	)		(260	)		(259	)		(141	)
Amortization of fair-value of debt acquired		231			327			428			427			497
Principal payments		2,092			2,141			1,758			1,771			1,825
Preferred dividends		3,651			3,651			3,901			4,241			4,241

Total fixed charges	$	25,305		$	25,516		$	26,473		$	27,259		$	25,435

Fixed charge coverage ratio		3.0			2.8			2.8			2.5			2.6

(1)	For a discussion of coverage ratios, see page 33.

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DEBT SUMMARY

MARCH 31, 2012

(Dollars in thousands)


	Stated Rate			Effective Rate			Principal Balance		Unamortized Premium / (Discount)			Carrying Value		Maturity Date
Consolidated Debt:
Fixed Rate Mortgages:
Center for Life Science \| Boston		7.75	%		7.75	%	$	341,250	$	—		$	341,250		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		61,749		2,759			64,508		12/18
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,342		58			6,400		09/12
Shady Grove Road		5.97	%		5.97	%		146,155		—			146,155		09/16
900 Uniqema Boulevard		8.61	%		5.61	%		762		36			798		05/15

Total / Weighted-Average on Fixed Rate Mortgages		7.12	%		7.00	%		556,258		2,853			559,111
Fixed Rate Debt:
Unsecured Exchangeable Senior Notes Due 2030		3.75	%		3.75	%		180,000		—			180,000		01/30
Unsecured Senior Notes Due 2016		3.85	%		3.99	%		400,000		(2,073	)		397,927		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(2,178	)		247,822		04/20

Subtotal / Weighted-Average on Unsecured Senior Notes		4.73	%		4.87	%		650,000		(4,251	)		645,749

Total / Weighted-Average on Fixed Rate Debt		5.56	%		5.58	%		1,386,258		(1,398	)		1,384,860
Variable Rate Debt:
Unsecured Senior Term Loan (1)		1.89	%		1.89	%		400,000		—			400,000		03/17
Unsecured Line of Credit		1.79	%		1.79	%		26,000		—			26,000		07/15

Total / Weighted-Average on Variable Rate Debt		1.88	%		1.88	%		426,000		—			426,000

Total / Weighted-Average on Unsecured Debt		3.62	%		3.70	%		1,256,000		(4,251	)		1,251,749
Total / Weighted-Average on Consolidated Debt		4.70	%		4.71	%	$	1,812,258	$	(1,398	)	$	1,810,860

Share of Unconsolidated Partnership Debt:
PREI Secured Construction Loan (20%) (variable)		3.25	%		3.25	%		27,795		—			27,795		08/13

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.25	%		3.25	%		27,795		—			27,795
Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		4.68	%		4.69	%	$	1,840,053	$	(1,398	)	$	1,838,655

(1)

The company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the $400 million outstanding under the unsecured senior term loan facility at 2.81% for five years, subject to adjustments based on the company’s credit ratings. Including the effect of these swaps, the weighted-average effective interest rate for the $400 million outstanding under the unsecured senior term loan facility was 2.35% at March 31, 2012.

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DEBT MATURITIES

MARCH 31, 2012

(In thousands)

Weighted-average debt maturity is 5.9 years for consolidated debt.


	2012		2013		2014		2015		2016		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	12,159	$	8,291	$	339,020	$	6,253	$	143,426	$	47,109	$	556,258
Unsecured exchangeable senior notes due 2030 (1)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2016		—		—		—		—		400,000		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000

Total fixed rate debt		12,159		8,291		339,020		6,253		543,426		477,109		1,386,258
Variable rate debt:
Unsecured senior term loan		—		—		—		—		—		400,000		400,000
Unsecured line of credit		—		—		—		26,000		—		—		26,000

Total variable rate debt		—		—		—		26,000		—		400,000		426,000

Total consolidated debt	$	12,159	$	8,291	$	339,020	$	32,253	$	543,426	$	877,109	$	1,812,258

Share of unconsolidated partnership debt:
PREI secured construction loan (20%) (variable)		—		27,795		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	—	$	27,795	$	—	$	—	$	—	$	—	$	27,795

Total consolidated and share of unconsolidated partnership debt	$	12,159	$	36,086	$	339,020	$	32,253	$	543,426	$	877,109	$	1,840,053

(1)

The holders of the unsecured exchangeable senior notes due 2030 (the “2030 Notes”) have the right to require the Company to repurchase the 2030 Notes, in whole or in part, for cash on each of January 15, 2015, January 15, 2020 and January 15, 2025, or upon the occurrence of a designated event, in each case for a repurchase price equal to 100% of the principal amount of the 2030 Notes plus accrued and unpaid interest.

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COMMON AND PREFERRED STOCK DATA

MARCH 31, 2012

(Shares in thousands)

SUMMARY OF COMMON SHARES


	Three Months Ended
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Earnings per share
Weighted-average common shares outstanding		152,659			140,909			129,872			129,858			129,772
Weighted-average OP and LTIP units outstanding		2,966			2,980			2,980			2,983			2,993

Diluted common shares - EPS		155,625			143,889			132,852			132,841			132,765

Funds from operations
Weighted-average common shares outstanding		152,659			140,909			129,872			129,858			129,772
Weighted-average OP and LTIP units outstanding		2,966			2,980			2,980			2,983			2,993
Dilutive effect of restricted stock		1,484			1,461			1,390			1,395			1,488
Dilutive effect of exchangeable senior notes due 2030		10,127			10,018			10,018			10,018			9,914

Diluted common shares - FFO		167,236			155,368			144,260			144,254			144,167

Closing common shares, OP and LTIP units outstanding		157,120			157,081			134,245			134,240			134,229
Preferred shares outstanding		7,920			7,920			7,920			9,200			9,200
High price	$	19.65		$	18.95		$	21.03		$	20.86		$	19.19
Low price	$	17.72		$	15.44		$	14.94		$	18.14		$	16.72
Average closing price	$	18.65		$	17.68		$	18.16		$	19.31		$	17.92
Closing price	$	18.98		$	18.08		$	16.57		$	19.24		$	19.02
Dividends per share - annualized	$	0.86		$	0.80		$	0.80		$	0.80		$	0.80
Closing dividend yield - annualized		4.5	%		4.4	%		4.8	%		4.2	%		4.2	%

DIVIDENDS PER SHARE
	3/31/12			12/31/11			9/30/11			6/30/11			3/31/11
Common Stock - BMR
Amount	$	0.215		$	0.20		$	0.20		$	0.20		$	0.20
Declared		March 15, 2012			December 14, 2011			September 15, 2011			June 15, 2011			March 14, 2011
Record		March 30, 2012			December 30, 2011			September 30, 2011			June 30, 2011			March 31, 2011
Paid		April 16, 2012			January 17, 2012			October 17, 2011			July 15, 2011			April 15, 2011
Preferred Stock - BMR PrA
Amount	$	0.46094		$	0.46094		$	0.46094		$	0.46094		$	0.46094
Declared		March 15, 2012			December 14, 2011			September 15, 2011			June 15, 2011			March 14, 2011
Record		March 30, 2012			December 30, 2011			September 30, 2011			June 30, 2011			March 31, 2011
Paid		April 16, 2012			January 17, 2012			October 17, 2011			July 15, 2011			April 15, 2011

LOGO

MARKET SUMMARY

MARCH 31, 2012


				Current (1)									Expiration (2)
Market	Leased Square Feet			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft
				(In thousands)									(In thousands)
Boston		2,625,780		$	142,408			36.0	%	$	54.23		$	151,127			32.7	%	$	57.56
San Francisco		2,066,010			63,110			15.9	%		30.55			77,255			16.7	%		37.39
San Diego		1,793,590			57,648			14.6	%		32.14			71,283			15.4	%		39.74
Maryland		1,474,716			56,148			14.2	%		38.07			71,948			15.6	%		48.79
New York / New Jersey		1,194,636			39,830			10.1	%		33.34			49,300			10.7	%		41.27
Pennsylvania		642,380			14,685			3.7	%		22.86			15,899			3.4	%		24.75
Seattle		238,326			11,356			2.9	%		47.65			13,175			2.9	%		55.28
University Related - Other		359,890			10,688			2.6	%		29.70			11,506			2.6	%		31.97

Total portfolio / weighted-average		10,395,328		$	395,873			100.0	%	$	38.08		$	461,493			100.0	%	$	44.39


	Percent Leased
Market	Current Operating Portfolio			Long-Term Lease Up (3)			Total Operating Portfolio			Redevelopment Partnership (4)			Unconsolidated Portfolio (5)
Boston		90.6	%		—			90.6	%		—			—
San Francisco		91.3	%		59.6	%		75.3	%		—			—
San Diego		89.8	%		—			89.8	%		—			100.0	%
Maryland		97.3	%		—			97.3	%		53.1	%		—
New York / New Jersey		82.7	%		—			82.7	%		100.0	%		—
Pennsylvania		88.5	%		—			88.5	%		—			—
Seattle		61.4	%		—			61.4	%		—			—
University Related - Other		97.6	%		—			97.6	%		—			—

Total portfolio (6)		89.5	%		59.6	%		86.0	%		74.1	%		20.6	%

Total portfolio weighted-average leased % (7)		90.7	%		58.7	%		88.2	%		57.9	%		20.6	%

(1)	Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)	Annualized base rent at expiration is the monthly contractual rent as of date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

(3)	Includes Pacific Research Center properties comprising Pacific Industrial Center, Pacific Research Center North and Pacific Research Center South.

(4)	See page 24 for detail of the consolidated portfolio and page 34 for definitions of terms.

(5)	See page 25 for detail of the unconsolidated partnership portfolio.

(6)	Calculated based on leased square feet divided by total square feet.

(7)	Calculated based on gross book value for each asset multiplied by the percentage leased.

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

MARCH 31, 2012


			Property				Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)		Buildings		Feet		Sq Ft			Feet		3/31/12			12/31/11
	Boston
1	Albany Street	May 31, 2005		Stabilized		2		75,003		0.6	%		75,003		100.0	%		100.0	%
2	320 Bent Street (2)	December 14, 2011		Lease Up		1		184,405		1.5	%		145,304		78.8	%		78.8	%
3	301 Binney Street (2)	December 14, 2011		Lease Up		1		417,290		3.5	%		310,381		74.4	%		74.4	%
4	301 Binney Street Garage (2)	December 14, 2011		Stabilized		1		503 Stalls		n/a			503 Stalls		100.0	%		99.0	%
5	210 Broadway	February 9, 2012		Lease Up		1		64,812		0.5	%		9,198		14.2	%		n/a
6	Center for Life Science \| Boston	November 17, 2006		Stabilized		1		704,159		5.7	%		687,582		97.6	%		97.9	%
7	Charles Street	April 7, 2006		Stabilized		1		47,912		0.4	%		47,912		100.0	%		100.0	%
8	Coolidge Avenue	April 5, 2005		Lease Up		1		37,684		0.3	%		32,584		86.5	%		86.5	%
9	21 Erie Street	May 31, 2005		Stabilized		1		48,627		0.4	%		48,627		100.0	%		100.0	%
10	40 Erie Street	May 31, 2005		Stabilized		1		100,854		0.8	%		100,854		100.0	%		100.0	%
11	47 Erie Street Parking Structure	May 31, 2005		Stabilized		1		447 Stalls		n/a			447 Stalls		100.0	%		100.0	%
12	Fresh Pond Research Park	April 5, 2005		Lease Up		6		90,702		0.8	%		46,685		51.5	%		18.1	%
13	50 Hampshire Street	February 9, 2012		Stabilized		1		183,052		1.5	%		181,952		99.4	%		n/a
14	60 Hampshire Street	February 9, 2012		Stabilized		1		39,014		0.3	%		39,014		100.0	%		n/a
15	500 Kendall Street (Kendall D)	May 31, 2005		Stabilized		1		349,325		2.9	%		346,535		99.2	%		98.5	%
16	675 W. Kendall Street (Kendall A)	May 31, 2005		Stabilized		1		302,919		2.5	%		301,400		99.5	%		98.7	%
17	Kendall Crossing Apartments (2)	December 14, 2011		Stabilized		1		37 Apts.		n/a			37 Apts.		100.0	%		100.0	%
18	Sidney Street	May 31, 2005		Stabilized		1		191,904		1.6	%		191,904		100.0	%		100.0	%
19	Vassar Street	May 31, 2005		Stabilized		1		60,845		0.5	%		60,845		100.0	%		100.0	%

	Total Boston					25		2,898,507		23.8	%		2,625,780		90.6	%		90.5	%

	San Francisco
20	Ardentech Court	November 18, 2004		Stabilized		1		55,588		0.5	%		55,588		100.0	%		100.0	%
21	Ardenwood Venture (3)	June 14, 2006		Lease Up		1		72,500		0.6	%		40,031		55.2	%		55.2	%
22	Bayshore Boulevard	August 17, 2004		Stabilized		3		183,344		1.5	%		183,344		100.0	%		100.0	%
23	Bridgeview Technology Park I	September 10, 2004		Lease Up		2		201,567		1.7	%		176,616		87.6	%		87.6	%
24	Bridgeview Technology Park II	March 16, 2005		Lease Up		1		50,400		0.4	%		28,714		57.0	%		57.0	%
25	Dumbarton Circle	May 27, 2005		Stabilized		3		44,000		0.4	%		44,000		100.0	%		100.0	%
26	Gateway Business Park	October 26, 2010		Stabilized		6		284,013		2.4	%		283,164		99.7	%		99.7	%
27	Industrial Road	August 17, 2004		Stabilized		1		171,344		1.4	%		171,344		100.0	%		100.0	%
28	Kaiser Drive	August 25, 2005		Lease Up		1		87,953		0.7	%		49,915		56.8	%		56.8	%
29	Pacific Industrial Center	July 11, 2006		Lease Up		1		305,026		2.5	%		219,255		71.9	%		—
30	Pacific Research Center North	July 11, 2006		Lease Up		6		661,245		5.5	%		345,609		52.3	%		50.4	%
31	Pacific Research Center South	July 11, 2006		Lease Up		3		423,246		3.5	%		263,543		62.3	%		62.3	%
32	Science Center at Oyster Point	October 26, 2010		Stabilized		2		204,887		1.7	%		204,887		100.0	%		100.0	%

	Total San Francisco					31		2,745,113		22.8	%		2,066,010		75.3	%		66.8	%

	San Diego
33	Balboa Avenue	August 13, 2004		Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
34	Bernardo Center Drive	August 13, 2004		Stabilized		1		61,286		0.5	%		61,286		100.0	%		100.0	%
35	4570 Executive Drive	September 17, 2010		Lease Up		1		125,219		1.0	%		106,757		85.3	%		100.0	%
36	4775 / 4785 Executive Drive	July 15, 2010		Lease Up		1		62,896		0.5	%		—		—			—
37	Faraday Avenue	September 19, 2005		Stabilized		1		28,704		0.2	%		28,704		100.0	%		100.0	%
38	Gazelle Court	March 30, 2010		Stabilized		1		176,000		1.5	%		176,000		100.0	%		100.0	%
39	3525 John Hopkins Court	December 28, 2010		Stabilized		1		48,306		0.4	%		48,306		100.0	%		100.0	%
40	3545-3575 John Hopkins Court	August 16, 2006		Lease Up		1		72,192		0.6	%		54,126		75.0	%		74.5	%
41	6114-6154 Nancy Ridge Drive	May 2, 2007		Stabilized		3		196,557		1.6	%		196,557		100.0	%		100.0	%
42	6828 Nancy Ridge Drive	April 21, 2005		Stabilized		1		42,138		0.3	%		42,138		100.0	%		100.0	%
43	Pacific Center Boulevard	August 24, 2007		Stabilized		2		66,745		0.6	%		66,745		100.0	%		100.0	%
44	Road to the Cure	December 14, 2006		Lease Up		1		67,998		0.6	%		37,219		54.7	%		63.8	%
45	San Diego Science Center	October 21, 2004		Lease Up		1		105,364		0.9	%		85,355		81.0	%		80.6	%
46	10240 Science Center Drive	September 23, 2010		Stabilized		1		49,347		0.4	%		49,347		100.0	%		100.0	%
47	10255 Science Center Drive	September 24, 2004		Stabilized		1		53,740		0.4	%		53,740		100.0	%		100.0	%
48	Sorrento Plaza	December 18, 2010		Stabilized		2		31,184		0.3	%		31,184		100.0	%		100.0	%
49	Sorrento Valley Boulevard	December 7, 2006		Stabilized		1		54,924		0.5	%		54,924		100.0	%		100.0	%

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

MARCH 31, 2012


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		3/31/12			12/31/11
	San Diego (Continued)
50	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.3	%		35,940		100.0	%		100.0	%
51	Sorrento West	October 15, 2010	Lease Up		8		164,074		1.4	%		119,570		72.9	%		99.8	%
52	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.7	%		81,204		100.0	%		100.0	%
53	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.8	%		94,866		100.0	%		100.0	%
54	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.9	%		104,870		100.0	%		100.0	%
55	Waples Street	March 1, 2005	Stabilized		1		50,055		0.4	%		50,055		100.0	%		100.0	%
56	Wateridge Circle	November 1, 2011	Stabilized		3		106,490		0.9	%		106,490		100.0	%		100.0	%

	Total San Diego				39		1,915,443		16.0	%		1,720,727		89.8	%		93.4	%

	Maryland
57	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.6	%		77,225		100.0	%		100.0	%
58	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.4	%		289,912		100.0	%		100.0	%
59	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.4	%		51,181		100.0	%		100.0	%
60	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		1.0	%		122,600		100.0	%		100.0	%
61	9708-9714 Medical Center Drive	May 3, 2010	Redevelopment		3		92,574		0.8	%		—		—			—
62	1701 / 1711 Research Boulevard	May 9, 2011	Redevelopment		1		104,743		0.9	%		104,743		100.0	%		100.0	%
63	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		5.3	%		635,058		100.0	%		100.0	%
64	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.8	%		91,592		100.0	%		100.0	%
65	50 West Watkins Mill Road	May 7, 2010	Lease Up		1		57,410		0.5	%		20,000		34.8	%		100.0	%
66	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.7	%		82,405		100.0	%		100.0	%

	Total Maryland				16		1,604,700		13.4	%		1,474,716		91.9	%		94.2	%

	New York / New Jersey
67	Ardsley Park	June 23, 2011	Redevelopment		5		160,500		1.3	%		160,500		100.0	%		100.0	%
68	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.6	%		46,386		64.2	%		64.2	%
69	Landmark at Eastview	August 12, 2004	Lease Up		5		768,063		6.4	%		627,230		81.7	%		85.6	%
70	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		3.0	%		360,520		100.0	%		100.0	%
71	One Research Way	May 31, 2006	Lease Up		1		49,421		0.4	%		—		—			—

	Total New York / New Jersey				15		1,410,804		11.7	%		1,194,636		84.7	%		86.8	%

	Pennsylvania
72	Eisenhower Road	August 13, 2004	Stabilized		1		27,750		0.2	%		27,750		100.0	%		100.0	%
73	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.6	%		71,500		100.0	%		100.0	%
74	King of Prussia	August 11, 2004	Stabilized		5		374,387		3.1	%		374,387		100.0	%		100.0	%
75	Phoenixville Pike	May 5, 2005	Lease Up		1		104,400		0.9	%		90,518		86.7	%		86.7	%
76	Spring Mill Drive	July 20, 2006	Lease Up		1		76,561		0.6	%		66,932		87.4	%		87.4	%
77	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
78	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.5	%		—		—			—

	Total Pennsylvania				11		725,712		6.0	%		642,380		88.5	%		88.5	%

	Seattle
79	Elliott Avenue	August 24, 2004	Lease Up		1		151,194		1.3	%		64,483		42.6	%		—
80	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
81	530 Fairview Avenue	January 12, 2006	Stabilized		1		96,188		0.8	%		89,894		93.5	%		80.2	%
82	Monte Villa Parkway	August 17, 2004	Lease Up		1		51,000		0.4	%		19,108		37.5	%		37.5	%
83	217th Place	November 21, 2006	Lease Up		1		67,799		0.6	%		42,628		62.9	%		62.9	%

	Total Seattle				5		388,394		3.3	%		238,326		61.4	%		41.1	%

	University Related - Other
84	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.5	%		61,603		100.0	%		100.0	%
85	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.4	%		39,691		82.0	%		82.0	%
86	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.6	%		78,023		100.0	%		100.0	%
87	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.2	%		149,984		100.0	%		100.0	%
88	Weston Parkway	December 17, 2010	Stabilized		1		30,589		0.3	%		30,589		100.0	%		100.0	%

	Total University Related - Other				9		368,593		3.0	%		359,890		97.6	%		97.6	%

	Total				151		12,057,266		100.0	%		10,322,465		85.6	%		84.0	%

(1)	For a definition of Property Status, see page 34.

(2)	Previously held through the Company's joint venture with PREI; the Company purchased PREI's interest in these properties in December 2011.

(3)	The Company owns 87.5% of the limited liability company that owns the Ardenwood Venture property.

LOGO

REDEVELOPMENT AND DEVELOPMENT

MARCH 31, 2012

(Dollars in thousands)


Property	Market	Rentable Square Feet		Percent Leased			Percent In Service			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
REDEVELOPMENT:
9708-9714 Medical Center Drive	Maryland		92,574		—			—		$	27,400	$	29,400		Q1 2013
Ardsley Park	New York /New Jersey		160,500		100.0	%		13.9	%		27,400		36,000		Q2 2012
1701 / 1711 Research Blvd	Maryland		104,743		100.0	%		—			13,200		28,200		Q2 2013

Total / weighted-average			357,817		74.1	%		6.2	%	$	68,000	$	93,600


DEVELOPMENT POTENTIAL:
Market		Estimated Developable Square Feet
Boston			103,000
San Francisco			1,606,000
San Diego			103,000
Maryland			674,000
New York / New Jersey			964,000
Pennsylvania			103,000
Seattle			114,000

Total			3,667,000

(1)	Includes amounts paid for acquiring the property, landlord improvements, and tenant improvement allowances, but excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through March 31, 2012.

(2)	Excludes costs associated with speculative leasing.

(3)	Management's estimate of the time in which construction is substantially completed. A project is considered substantially complete and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity.

LOGO

PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS

MARCH 31, 2012

(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

3/31/12

12/31/11

Market

McKellar Court

McKellar Court

September 30, 2004

Stabilized

72,863

100.0

San Diego

PREI

650 E. Kendall Street (Kendall B)

April 4, 2007

Lease Up

280,000

—

Boston

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1,409 Stalls

n/a

100.0

Boston


	McKellar Court (2)			PREI			Total
Total assets	$	14,315		$	248,308		$	262,623
Total debt (3)		10,280			138,975			149,255
Current annualized base rent		1,920			27,658			29,578
BioMed’s net investment in unconsolidated partnerships	$	12,316		$	20,585		$	32,901
BioMed's pro rata share of debt		—			27,795			27,795
BioMed ownership percentage		22	%		20	%		20	%

(1)	For a definition of Property Status, see page 34.

(2)	The Company owns a general partnership interest in the limited partnership that owns this property, which entitles it to 75% of the gains upon a sale of the property and 22% of the operating cash flows.

(3)	McKellar Court’s debt is payable to BioMed Realty, L.P. and is included in investments in unconsolidated partnerships on the Company’s consolidated balance sheet.

LOGO

LEASE EXPIRATIONS

MARCH 31, 2012

The weighted-average remaining lease terms are 7.8 years.


						Current (1)							Expiration (2)
Expiration	Leased Square Feet		Percent of Leased Square Feet			Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet
						(In thousands)							(In thousands)
Month-to-month		9,262		0.1	%	$	194		—		$	20.95	$	228		—		$	24.62
Second quarter 2012		38,525		0.4	%		1,518		0.4	%		39.40		1,518		0.3	%		39.40
Third quarter 2012		135,717		1.3	%		4,087		1.0	%		30.11		4,203		0.9	%		30.97
Fourth quarter 2012		215,899		2.1	%		14,664		3.7	%		67.92		14,664		3.2	%		67.92

2012		390,141		3.8	%		20,269		5.1	%		51.95		20,385		4.4	%		52.25
2013		486,846		4.7	%		10,496		2.7	%		21.56		11,531		2.5	%		23.69
2014		787,308		7.6	%		22,382		5.7	%		28.43		23,413		5.1	%		29.74
2015		499,321		4.8	%		16,251		4.1	%		32.55		17,534		3.8	%		35.12
2016		1,295,228		12.5	%		54,810		13.8	%		42.32		58,750		12.7	%		45.36
2017		267,257		2.6	%		8,117		2.1	%		30.37		9,648		2.1	%		36.10
2018		1,254,331		12.1	%		54,894		13.9	%		43.76		60,948		13.2	%		48.59
2019		303,353		2.9	%		9,532		2.4	%		31.42		11,411		2.5	%		37.62
2020		578,819		5.6	%		23,226		5.9	%		40.13		22,579		4.9	%		39.01
2021		546,614		5.3	%		12,934		3.3	%		23.66		16,165		3.5	%		29.57
Thereafter		3,976,848		38.0	%		162,768		41.0	%		40.93		208,901		45.3	%		52.53

Total / weighted-average		10,395,328		100.0	%	$	395,873		100.0	%	$	38.08	$	461,493		100.0	%	$	44.39

(1)	Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)	Annualized base rent at expiration is the monthly contractual rent as of the date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

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EXPIRATIONS BY MARKET

MARCH 31, 2012


	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		Maryland		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		7,219		—		2,043		—		—		—		9,262
2012		12,292		138,963		192,076		—		24,597		—		22,213		—		390,141
2013		15,410		179,072		204,736		—		13,031		61,703		3,962		8,932		486,846
2014		67,033		74,929		61,263		62,900		63,525		407,961		19,108		30,589		787,308
2015		46,192		93,147		308,737		—		—		34,753		—		16,492		499,321
2016		683,587		186,061		27,849		—		40,687		31,166		36,268		289,610		1,295,228
2017		68,542		39,322		48,223		51,181		59,989		—		—		—		267,257
2018		807,347		121,590		243,555		—		24,944		—		42,628		14,267		1,254,331
2019		23,115		61,757		—		168,817		—		—		49,664		—		303,353
2020		289,192		49,915		72,863		122,600		44,249		—		—		—		578,819
2021		16,634		250,306		8,365		39,505		160,304		71,500		—		—		546,614
Thereafter		596,436		870,948		618,704		1,029,713		761,267		35,297		64,483		—		3,976,848

Total		2,625,780		2,066,010		1,793,590		1,474,716		1,194,636		642,380		238,326		359,890		10,395,328

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10 LARGEST TENANTS

MARCH 31, 2012

BioMed’s properties were leased to 181 tenants.


	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1)		Annualized Base Rent per Leased Sq Ft Current		Percent of Annualized Base Rent Current Total Portfolio			Lease Expiration
							(In thousands)
1	Human Genome Sciences, Inc.		924,970		8.9	%	$	43,611	$	47.15		11.0	%		June 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		6.6	%		34,290		50.04		8.7	%		Multiple
3	Elan Pharmaceuticals, Inc. (3)		414,430		4.0	%		27,223		65.69		6.9	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		3.5	%		25,543		70.49		6.5	%		July 2023
5	Regeneron Pharmaceuticals, Inc.		592,566		5.7	%		24,215		40.86		6.1	%		July 2024
6	Sanofi (4)		418,003		4.0	%		19,470		46.58		4.9	%		Multiple
7	Ironwood Pharmaceuticals, Inc.		210,259		2.0	%		11,220		53.36		2.8	%		February 2016
8	Merck & Co., Inc. (5)		214,946		2.1	%		10,632		49.46		2.7	%		Multiple
9	Children’s Hospital Corporation		150,215		1.4	%		9,401		62.58		2.4	%		May 2023
10	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		3.6	%		8,743		23.35		2.2	%		April 2014

	Total / weighted-average (6)		4,347,426		41.8	%	$	214,348	$	49.30		54.2	%

(1)	Based on current annualized base rent. Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2)	81,204 square feet expire October 2013, 292,758 square feet expire January 2016, 20,608 square feet expire May 2017, and 290,716 square feet expire May 2018.

(3)	138,963 square feet expire December 2012, 15,482 square feet expire January 2013, 55,098 square feet expire December 2014, 115,888 square feet expire April 2024, and 88,999 square feet expire February 2025.

(4)	343,000 square feet expire August 2018 and 75,003 square feet expire October 2018.

(5)	This tenant guarantees rent on 39,053 square feet leased at Landmark at Eastview and 30,589 square feet leased at Weston Parkway. 39,053 square feet expire July 2012, 30,589 square feet expire January 2014 and 145,304 square feet expire September 2016.

(6)	Without regard to any early lease terminations and/or renewal options.

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SAME PROPERTY ANALYSIS

MARCH 31, 2012

(Dollars in thousands)


	Three Months Ended
	3/31/12			3/31/11			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		11,482,944			11,474,619
Percent of total portfolio		92.5	%		97.7	%
Percent leased		83.8	%		79.5	%
Revenues:
Rental	$	87,543		$	84,975			3.0	%
Tenant recoveries		29,350			28,028			4.7	%

Total revenues		116,893			113,003			3.4	%

Expenses:
Rental operations		35,648			35,000			1.9	%

Same property net operating income (2)	$	81,245		$	78,003			4.2	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(215	)		(312	)		(31.1	%)

Same property net operating income - cash basis (2) (3)	$	81,030		$	77,691			4.3	%

Rental revenue - cash basis (3)	$	86,956		$	84,178			3.3	%

(1)	The same property portfolio includes properties in the total portfolio that were stabilized or in lease up throughout the full quarter in both the current year and the prior year.

(2)	For a definition and discussion of net operating income, see page 33. For a quantitative reconciliation of net operating income to net income in accordance with GAAP, see page 15.

(3)	Represents rents on a “cash-on-cash” basis.

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ACQUISITIONS

MARCH 31, 2012


Acquisitions detail for 2012:	Market	Closing Date	Rentable Square Feet (1)		Investment		Percent Leased at Acquisition

Property
					(In thousands)
First Quarter 2012
Cambridge Place (2)	Boston	February 9, 2012		286,878	$	119,000		80.2	%

First quarter total				286,878	$	119,000		80.2	%

Total 2012 acquisitions				286,878	$	119,000		80.2	%

(1)	Rentable square feet at the time of acquisition.

(2)	Includes 210 Broadway, 50 Hampshire Street and 60 Hampshire Street properties.

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LEASING ACTIVITY (1)

MARCH 31, 2012


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft
Leased Square Feet as of December 31, 2011		10,075,859
Acquisitions		230,164		$	38.05
Dispositions (2)		(121,008	)		9.24
Expirations		(234,403	)		28.32
Terminations		(61,497	)		26.97
Pre-leased delivery		39,954			24.50
Renewals, amendments, and extensions		70,894			28.64
New leases - 1st generation (3)		319,947			17.83
New leases - 2nd generation (3)		75,418			29.14

Leased Square Feet as of March 31, 2012		10,395,328

Pre-leased Square Feet as of December 31, 2011		143,707
Pre-leased delivery		(39,954	)		24.50
Pre-leased cancelations		(12,922	)		28.50

Pre-leased Square Feet as of March 31, 2012		90,831

Gross Leasing Activity - First Quarter 2012		466,259		$	21.30

Net Absorption		210,313		$	12.43

(1)	Leasing activity for leases signed during the periods presented, which may be different than the period of actual occupancy.

(2)	Includes Forbes Boulevard property. Subsequent to quarter end, the Company exchanged this property for a property located at 550 Broadway Street in Redwood City, California. For book purposes, the property was classified as held for sale and was excluded from the Company’s consolidated portfolio.

(3)	For definitions of first and second generation leases, see page 34.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS, AND TENANT CONCESSIONS

MARCH 31, 2012


	Three Months Ended
	3/31/12		12/31/11		9/30/11		6/30/11		3/31/11
Renewals, Amendments, and Extensions (1)
Number of renewals		6		7		8		8		12
Square feet		70,894		112,795		94,506		102,413		230,780
Tenant improvement costs per square foot (2)	$	10.31	$	—	$	0.79	$	2.42	$	1.05
Leasing commission costs per square foot (2)		2.99		1.96		6.85		5.52		1.73
Tenant concession costs per square foot (2)(3)		7.99		0.24		—		9.69		0.29

Total tenant improvement, leasing commission, and tenant concession costs psf	$	21.29	$	2.20	$	7.64	$	17.63	$	3.07

New Leases - 1st Generation (4)
Number of leases		8		5		2		6		4
Square feet		319,947		57,783		107,504		476,335		81,919
Tenant improvement costs per square foot (2)	$	18.98	$	42.91	$	139.53	$	70.24	$	43.13
Leasing commission costs per square foot (2)		7.84		8.26		0.52		13.68		13.46
Tenant concession costs per square foot (2)(3)		29.22		11.28		0.17		9.84		46.10

Total tenant improvement, leasing commission, and tenant concession costs psf	$	56.04	$	62.45	$	140.22	$	93.76	$	102.69

New Leases - 2nd Generation (4)
Number of leases		8		9		9		6		11
Square feet		75,418		83,364		124,958		23,771		150,547
Tenant improvement costs per square foot (2)	$	27.22	$	0.99	$	33.92	$	2.84	$	13.00
Leasing commission costs per square foot (2)		2.78		1.36		8.37		3.03		5.97
Tenant concession costs per square foot (2)(3)		4.22		11.82		10.45		4.71		8.39

Total tenant improvement, leasing commission, and tenant concession costs psf	$	34.22	$	14.17	$	52.74	$	10.58	$	27.36

Total
Number of renewals/leases		22		21		19		20		27
Square feet		466,259		253,942		326,968		602,519		463,246
Tenant improvement costs per square foot (2)	$	19.00	$	10.09	$	59.07	$	56.05	$	12.37
Leasing commission costs per square foot (2)		6.29		3.19		5.35		11.87		5.18
Tenant concession costs per square foot (2)(3)		21.95		6.55		4.05		9.61		11.02

Total tenant improvement, leasing commission, and tenant concession costs psf	$	47.24	$	19.83	$	68.47	$	77.53	$	28.57

(1)	Does not include retained tenants that have relocated to new space or expanded into new space.

(2)	Based on management estimates. Assumes all tenant improvement, leasing commission, and tenant concession costs are paid in the calendar year in which the lease commences, which may be different than the year in which they are actually paid.

(3)	Includes both rent concessions due to free or discounted rent periods and lease incentives paid to tenants.

(4)	Includes pre-leasing activity and retained tenants that have relocated to new space or expanded into new space within the Company’s portfolio. For definitions of first and second generation leases, see page 34.

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NON-GAAP FINANCIAL MEASURE DEFINITIONS

MARCH 31, 2012

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other REITs, and therefore, may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to cash flows from operating, investing or financing activities as a measure of liquidity, computed in accordance with GAAP.

Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)

We present funds from operations, or FFO, and adjusted funds from operations, or AFFO, available to common shares and partnership and LTIP units because we consider them important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and AFFO 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. As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, impairment charges on depreciable real estate, real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.

We calculate AFFO by adding to FFO: (a) non-cash revenues and expenses, (b) recurring capital expenditures and second generation tenant improvements, and (c) leasing commissions.

Our computation of FFO and AFFO may differ from the methodology for calculating FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and AFFO do 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 and AFFO 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. FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of our operations.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We calculate adjusted EBITDA by adding to EBITDA: (a) noncontrolling interests in our operating partnership, (b) impairments, (c) dividends payable on and cost on redemption of our series A preferred stock, (d) non-cash adjustments for marketable securities, and (e) gains or losses from sales of real estate. Management uses EBITDA and adjusted EBITDA as indicators of our ability to incur and service debt. In addition, we consider EBITDA and adjusted EBITDA to be appropriate supplemental measures of our performance because they eliminate depreciation and interest, which permits investors to view income from operations without the impact of non-cash depreciation or the cost of debt. However, because EBITDA and adjusted EBITDA are calculated before recurring cash charges including interest expense and taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility is limited.

Coverage Ratios

We present interest and fixed charge ratios as supplemental liquidity measures. Management uses these ratios as indicators of our financial flexibility to service current interest expense and debt amortization from current cash net operating income. In addition, we believe that these coverage ratios represent common metrics used by securities analysts, investors and other interested parties to evaluate our ability to service fixed cash payments. However, because these ratios are derived from adjusted EBITDA, their utility is limited by the same factors that limit the usefulness of adjusted EBITDA as a liquidity measure.

Net Operating Income (NOI)

We use net operating income, or NOI, as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. We compute NOI by adding or subtracting certain items from net income, noncontrolling interest in the operating partnership, gains/losses from investment in unconsolidated partnerships, interest expense, interest income, depreciation and amortization, and general and administrative expenses. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

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DEFINITIONS

MARCH 31, 2012

Property Status

Stabilized

Represents operating properties that are more than 90% leased.

Lease up

Represents operating properties that are less than 90% leased.

Redevelopment

Represents properties that we are currently preparing for their intended use, and accordingly are capitalizing interest and other costs as of the end of the quarter.

Development

Represents properties that we are currently developing through ground up construction.

Development Potential

Represents estimates of the additional rentable square footage that we could put into service if management made the strategic election to pursue additional development.

Lease Type

First Generation

Leases on space which, in management’s evaluation, require significant improvements to prepare or condition the premises for its intended purpose or enhance the value of the property. This generally includes capital expenditures for development, redevelopment or repositioning a property.

Second Generation

Leases which are not considered by management to be first generation leases.

Recurring Capital Expenditures

Recurring capital expenditures exclude (1) capital improvements that were taken into consideration when underwriting the purchase of a building, (2) items associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building, incurred to prepare or condition the premises for its intended purpose (for example, from office to laboratory) or (4) capital improvements that represent an addition to the property rather than the replacement of property, plant, or equipment.

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