BioMed Realty Trust Inc - FORM 8-K - EX-99.2

Attached files

file	filename
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	d579851dex991.htm
8-K - FORM 8-K - BioMed Realty Trust Inc	d579851d8k.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

JUNE 30, 2013


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

JUNE 30, 2013


	Page			Page
Second Quarter Highlights		3	Common and Preferred Stock Data		20
Investor Information		4	Market Summary		21
Equity Research Coverage		5	Property Listing - Consolidated Portfolio		22-24
Financial and Operating Highlights		6	Development, Redevelopment and Development Potential
Capitalization Summary		7	Development, Redevelopment and Development Potential		25
Portfolio Summary		8	Capital Expenditures		26
Consolidated Balance Sheets		9	Property Listing - Unconsolidated Partnerships		27
Consolidated Statements of Operations		10	Lease Expirations		28
Balance Sheet / Operations Statement Detail		11	Expirations by Market		29
FFO, CFFO and AFFO		12	10 Largest Tenants		30
FFO, CFFO and AFFO per Share		13	Same Property Analysis		31
Reconciliation of EBITDA and Adjusted EBITDA		14	Acquisitions and Mergers		32
Reconciliation of Net Operating Income		15	Leasing Activity		33
Interest Expense		16	Tenant Improvements, Leasing Commissions and Tenant Concessions
Coverage Ratios		17			34
Debt Summary		18	Non-GAAP Financial Measure Definitions		35
Debt Maturities		19	Definitions		36

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; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, developments and other investments, 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; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with tax credits, grants and other subsidies to fund development activities; risks associated with downturns in foreign, domestic and local economies, changes in interest rates and foreign currency exchange rates, and volatility in the securities markets; ownership of properties outside of the United States that subject the company to different and potentially greater risks than those associated with the company’s domestic operations; risks associated with the company’s investments in loans, including borrower defaults and potential principal losses; 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 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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SECOND QUARTER HIGHLIGHTS

JUNE 30, 2013

•

Executed 20 leasing transactions during the quarter representing approximately 898,000 square feet, contributing to an operating portfolio leased percentage on a weighted-average basis of approximately 90.8% at quarter end, and comprised of:

•

Eight new leases totaling approximately 422,800 square feet, highlighted by:

•

a pre-leased build-to-suit transaction with Regeneron Pharmaceuticals, to construct two new buildings with an initial 15-year lease term totaling approximately 297,000 square feet at The Landmark at Eastview in Tarrytown, New York;

•

a lease expansion with a private biotechnology company for approximately 32,900 square feet at the company’s Pacific Research Center (PRC) in Newark, California; and

•

a new lease with Inovio Pharmaceuticals for 26,500 square feet at the company’s Wateridge Circle property in San Diego, California.

•

Twelve lease renewals totaling approximately 475,300 square feet, highlighted by:

•

a lease extension with Regeneron Pharmaceuticals for approximately 360,500 square feet at The Landmark at Eastview which now extends to July 2029; and

•

a lease expansion and extension with MedImmune, a subsidiary of AstraZeneca, for approximately 24,400 square feet at the company’s Bridgeview Technology Park in Hayward, California.

•

Same property net operating income on a cash basis for the second quarter increased 4.9% versus the same period in 2012, excluding the 180 and 200 Oyster Point properties, which were leased to Life Technologies in the second quarter and for which the company received a $46.5 million lease termination payment from Elan Corporation in the second quarter of 2013.

•

Core funds from operations (CFFO) was $0.41 per diluted share, as compared to $0.32 per diluted share in the second quarter of 2012. Funds from operations (FFO) calculated in accordance with standards established by NAREIT was $0.40 per diluted share.

•

Adjusted funds from operations (AFFO) for the quarter was $0.37 per diluted share, as compared to $0.33 per diluted share in the second quarter of 2012.

•

Recognition of the remaining portion of the previously announced Elan Corporation lease termination fee increased FFO and CFFO for the second quarter by $13.6 million, or $0.07 per diluted share, and AFFO by $17.7 million, or $0.09 per diluted share.

•

Generated total revenues for the second quarter of approximately $159.6 million, up from approximately $124.8 million in the second quarter of 2012. Rental revenues for the quarter increased to approximately $108.1 million from approximately $95.7 million in the same period in 2012 and were the highest in the company’s history.

•

Reported net income available to common stockholders for the quarter of approximately $14.8 million, or $0.08 per diluted share.

•

Completed the previously announced merger with Wexford Science & Technology, LLC, owner and developer of institutional quality life science real estate for academic and medical research organizations. The aggregate consideration for Wexford Science & Technology was approximately $669.1 million, with a portion of the purchase price paid through the issuance of 5.9 million shares of common stock and operating partnership units.

•

Acquired 320 Charles Street in Cambridge, Massachusetts for approximately $49.5 million, with a portion of the purchase price paid through the issuance of approximately 2.0 million operating partnership units. The approximately 99,500 square foot laboratory and office building is 100% leased.

•

Completed a follow-on public offering of common stock, raising approximately $354.1 million in net proceeds.

About BioMed Realty Trust

BioMed Realty delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty owns or has interests in properties comprising approximately 16.3 million rentable square feet (including the properties acquired in its recent merger with Wexford Science & Technology). The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, Maryland, San Diego and New York/New Jersey, which have well-established reputations as centers for scientific research. Additional information is available at www.biomedrealty.com.

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INVESTOR INFORMATION

JUNE 30, 2013


Company Information
Corporate Headquarters	Trading Symbol	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	Computershare Shareowner Services LLC	New York Stock Exchange
San Diego, CA 92128		250 Royall Street
(858) 485-9840		Canton, MA 02021
(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	Jonathan P. Klassen	Robert M. Sistek
Chairman	Chairman and	Senior Vice President,	Vice President, Finance
Daniel M. Bradbury	Chief Executive Officer	General Counsel and Secretary	William F. X. Kane
Barbara R. Cambon	R. Kent Griffin, Jr.	John P. Bonanno	Vice President,
Edward A. Dennis, Ph.D.	President and	Senior Vice President,	Leasing & Development
Richard I. Gilchrist	Chief Operating Officer	Leasing & Development	Denis J. Sullivan, Jr.
Gary A. Kreitzer	Gary A. Kreitzer	Kevin M. Simonsen	Vice President,
Theodore D. Roth	Executive Vice President,	Vice President,	Acquisitions
M. Faye Wilson	Director	Real Estate Legal	James R. Berens
	Matthew G. McDevitt	Bruce D. Steel	President
	Executive Vice President,	Managing Director,	Wexford Science & Technology
	Real Estate	BioMed Ventures	Sandy N. Weeks, Esq.
	Greg N. Lubushkin	Stephen A. Willey	Senior Vice President and
	Chief Financial Officer	Vice President,	General Counsel
	Karen A. Sztraicher	Chief Accounting Officer	Wexford Science & Technology
	Executive Vice President,	Janice L. Kameir	Daniel C. Cramer
	Asset Management	Vice President,	Senior Vice President, Development
		Human Resources	Wexford Science & Technology


Tentative Schedule for Quarterly Results
Third Quarter 2013	October 30, 2013
Fourth Quarter 2013	February 5, 2014
First Quarter 2014	April 30, 2014
Second Quarter 2014	July 30, 2014

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EQUITY RESEARCH COVERAGE

JUNE 30, 2013


BMO Capital Markets	Richard C. Anderson Joshua Patinkin	(212) 885-4180 (212) 883-5102	richard.anderson@bmo.com joshua.patinkin@bmo.com

Cantor Fitzgerald	David Toti Evan Smith	(212) 915-1219 (212) 915-1220	dtoti@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	Jeff Theiler	(949) 640-8780	jtheiler@greenst.com

Jefferies & Co.	Omotayo Okusanya David Shamis	(212) 336-7076 (212) 284-1796	tokusanya@jefferies.com dshamis@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	Vikram Malhotra Vance Edelson	(212) 761-7064 (212) 761-0078	vikram.malhotra@morganstanley.com vance.edelson@morganstanley.com

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

Robert W. Baird & Co.	David B. Rodgers Mathew R. Spencer	(216) 737-7341 (414) 298-5053	drodgers@rwbaird.com mspencer@rwbaird.com

Stifel, Nicolaus & Company, Inc.	Daniel Bernstein Seth P. Cohn	(443) 224-1351 (443) 224-1354	bernsted@stifel.com cohns@stifel.com

UBS Securities	Ross T. Nussbaum Gabriel Hilmoe	(212) 713-4760 (212) 713-3876	ross.nussbaum@ubs.com gabriel.hilmoe@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

JUNE 30, 2013

(In thousands, except per share and ratio amounts)


	Three Months Ended
Selected Operating Data	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Rental revenues	$	108,092		$	102,956		$	103,978		$	101,467		$	95,708
Total revenues		159,639			160,450			138,771			134,537			124,848
EBITDA (1)		105,389			95,878			85,018			81,774			63,302
Adjusted EBITDA (1)		94,196			88,396			88,784			85,647			79,571
Net operating income - cash basis (2)		98,031			98,784			92,728			92,032			86,800
General and administrative expense		10,396			10,028			10,608			10,226			8,576
Acquisition-related expenses		2,120			2,236			22			176			12,245
Capitalized interest		3,176			2,840			2,268			1,926			2,090
Interest expense, net		26,119			25,902			26,745			26,817			23,825
Operating margin (3)		70.2	%		70.1	%		70.9	%		70.8	%		70.3	%
General and administrative expense / Total revenues		6.5	%		6.2	%		7.6	%		7.6	%		6.9	%
Change in same property net operating income - cash basis (4)		2.5	%		3.5	%		6.1	%		7.7	%		6.4	%
Net income/(loss) available to common stockholders		14,803			8,388			4,516			2,758			(8,713	)
Net income/(loss) per share - diluted	$	0.08		$	0.05		$	0.03		$	0.02		$	(0.06	)
FFO - diluted (5)		80,514			71,333			59,546			56,166			40,680
FFO per share - diluted (5)	$	0.40		$	0.41		$	0.36		$	0.34		$	0.24
CFFO - diluted (5)		82,634			73,569			59,568			56,342			52,925
CFFO per share - diluted (5)	$	0.41		$	0.42		$	0.36		$	0.34		$	0.32
AFFO - diluted (5)		73,951			81,424			55,004			55,641			55,334
AFFO per share - diluted (5)	$	0.37		$	0.47		$	0.33		$	0.33		$	0.33
Dividend per share - common stock	$	0.235		$	0.235		$	0.235		$	0.215		$	0.215
CFFO payout ratio (6)		57.3	%		56.0	%		65.3	%		63.2	%		67.2	%
AFFO payout ratio (6)		63.5	%		50.0	%		71.2	%		65.2	%		65.2	%

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(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 35. For a quantitative reconciliation of the differences between EBITDA, Adjusted 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)	Compared to the same period in the prior year. See page 31 for detail.

(5)	For definitions and discussion of FFO, CFFO and AFFO, see page 35. For a quantitative reconciliation of the differences between FFO, CFFO, AFFO and net income available to common stockholders, see pages 12 and 13.

(6)	See page 13 for detail of the CFFO and AFFO payout ratios.

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CAPITALIZATION SUMMARY

JUNE 30, 2013

(In thousands, except per share and ratio amounts)


Capitalization		6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Total common shares outstanding			191,948			169,055			154,328			154,335			154,184
Total units outstanding (1)			5,416			2,919			2,933			2,943			2,943

Total common shares and units outstanding			197,364			171,974			157,261			157,278			157,127
Common share price at quarter end		$	20.23		$	21.60		$	19.33		$	18.72		$	18.68

Equity value at quarter end		$	3,992,675		$	3,714,640		$	3,039,847		$	2,944,240		$	2,935,122
Preferred stock at liquidation value			—			—			198,000			198,000			198,000
Consolidated debt			2,524,960			2,255,941			2,170,983			2,142,405			2,106,021

Total capitalization		$	6,517,635		$	5,970,581		$	5,408,830		$	5,284,645		$	5,239,143

Debt / Total assets			43.1	%		45.1	%		44.9	%		44.3	%		43.9	%
Debt / Total gross assets			38.5	%		40.0	%		39.9	%		39.7	%		39.6	%
Debt / Total capitalization			38.7	%		37.8	%		40.1	%		40.5	%		40.2	%
Coverage Ratios (2)
Debt / Adjusted EBITDA			6.7			6.4			6.1			6.2			6.6
Net Debt / Pro Forma Adjusted EBITDA (3)			6.2			6.3			6.0			6.2			6.5
Interest coverage			4.0			3.8			3.7			3.6			3.8
Fixed charge coverage			3.7			3.2			3.0			2.9			3.0
Total Consolidated Debt
Secured debt / Total gross assets			11.6	%		10.1	%		10.5	%		10.7	%		10.3	%
Floating rate debt / Total debt			27.0	%		27.1	%		24.1	%		23.0	%		22.7	%
Adjusted floating rate debt / Total debt (4)			13.0	%		11.5	%		7.4	%		6.1	%		13.2	%
Unencumbered real estate / Total real estate			74.3	%		77.7	%		77.0	%		76.8	%		77.0	%
Unencumbered CABR / Total CABR (5)			76.5	%		79.1	%		79.3	%		79.1	%		79.3	%
Unsecured line of credit capacity		$	510,000		$	535,000		$	632,000		$	650,500		$	658,590

Bond Covenants (6)	Requirements
Total outstanding debt / Total assets	Must be £ 60%		39.6	%		41.2	%		41.1	%		41.3	%		41.2	%
Secured debt / Total assets	Must be £ 40%		11.9	%		10.4	%		10.8	%		11.0	%		10.7	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		3.7			3.2			3.0			2.9			2.9
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		278	%		257	%		260	%		259	%		258	%
Unencumbered assets / Unsecured debt - Notes due 2016, Notes due 2022	Must be ³ 150%		276	%		255	%		257	%		257	%		255	%

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

(2)	For discussion of coverage ratios, see page 35. See page 17 for the calculation of interest and fixed charge coverage ratios. See page 14 for calculation of Adjusted EBITDA.

(3)	Net Debt is calculated as (debt less cash and cash equivalents and restricted cash). See page 35 for definition of Pro Forma Adjusted EBITDA.

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

(5)	For current annualized base rent (CABR) by market, see page 21.

(6)

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 and unsecured senior notes due 2022, which are included as exhibits to the Company’s Forms 8-K filed with the SEC on April 30, 2010, March 30, 2011, and June 28, 2012, respectively. The covenants for the unsecured senior notes due 2020, unsecured senior notes due 2016, and unsecured senior notes due 2022 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 and unsecured senior notes due 2022 excludes such investments in unconsolidated partnerships.

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PORTFOLIO SUMMARY

JUNE 30, 2013


	Gross Book Value		Buildings		Rentable Square Feet		Weighted- Average Leased % (1)
	(In thousands)
Stabilized (2)	$	3,839,591		111		9,025,214		99.2	%
Lease up (2)		1,552,135		63		5,436,561		70.0	%

Total operating portfolio	$	5,391,726		174		14,461,775		90.8	%


Development (3)	$	120,993		6		1,292,262		65.5	%
Redevelopment (3)		20,327		2		143,757		77.6	%
Pre-Development (3)		87,732		—		1,043,000		—
Unconsolidated partnership portfolio (4)		32,250		3		355,080		56.0	%
Development potential (3)		200,193		—		3,306,000		—

Total portfolio	$	5,853,221		185		20,601,874

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

(2)	See pages 22-24 for detail of consolidated portfolio and page 36 for definitions of terms.

(3)	See page 25 for detail of the consolidated portfolio and page 36 for definitions of terms.

(4)	See page 27 for detail of the unconsolidated partnership portfolio.

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CONSOLIDATED BALANCE SHEETS

JUNE 30, 2013

(In thousands)


	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Assets
Investments in real estate, net	$	5,131,507		$	4,424,867		$	4,319,716		$	4,327,426		$	4,309,421
Investments in unconsolidated partnerships		32,250			32,118			32,367			31,955			32,562
Cash and cash equivalents		27,666			18,552			19,976			20,646			17,385
Accounts receivable, net		6,274			35,888			4,507			7,128			4,241
Accrued straight-line rents, net		163,287			155,591			152,096			144,975			139,346
Deferred leasing costs, net		213,567			167,648			172,363			180,925			185,354
Other assets		289,232			164,968			133,454			118,052			111,383

Total assets	$	5,863,783		$	4,999,632		$	4,834,479		$	4,831,107		$	4,799,692

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	821,582		$	569,390		$	571,652		$	574,497		$	550,704
Exchangeable senior notes		180,000			180,000			180,000			180,000			180,000
Unsecured senior notes, net		894,622			894,397			894,177			893,955			893,737
Unsecured senior term loan		395,676			395,486			405,456			405,216			400,000
Unsecured line of credit		240,000			215,000			118,000			87,000			78,000
Accounts payable, accrued expenses and other liabilities		281,780			199,731			180,653			178,706			157,829

Total liabilities		2,813,660			2,454,004			2,349,938			2,319,374			2,260,270
Equity:
Stockholders’ equity:
Preferred stock		—			—			191,469			191,469			191,469
Common stock		1,919			1,691			1,543			1,543			1,542
Additional paid-in capital		3,549,082			3,065,589			2,781,849			2,779,035			2,776,046
Accumulated other comprehensive loss, net		(43,094	)		(55,480	)		(54,725	)		(56,988	)		(57,326	)
Dividends in excess of earnings		(504,921	)		(474,619	)		(443,280	)		(411,529	)		(381,105	)

Total stockholders’ equity		3,002,986			2,537,181			2,476,856			2,503,530			2,530,626
Noncontrolling interests		47,137			8,447			7,685			8,203			8,796

Total equity		3,050,123			2,545,628			2,484,541			2,511,733			2,539,422

Total liabilities and equity	$	5,863,783		$	4,999,632		$	4,834,479		$	4,831,107		$	4,799,692

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CONSOLIDATED STATEMENTS OF OPERATIONS

JUNE 30, 2013

(In thousands, except share and per share data)


	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Revenues:
Rental	$	108,092		$	102,956		$	103,978		$	101,467		$	95,708
Tenant recoveries		32,494			32,637			31,638			31,765			28,939
Other revenue		19,053			24,857			3,155			1,305			201

Total revenues		159,639			160,450			138,771			134,537			124,848

Expenses:
Rental operations		41,941			40,553			39,502			38,944			37,044
Depreciation and amortization		63,557			60,764			52,963			51,372			47,575
General and administrative		10,396			10,028			10,608			10,226			8,576
Acquisition-related expenses		2,120			2,236			22			176			12,245

Total expenses		118,014			113,581			103,095			100,718			105,440

Income from operations		41,625			46,869			35,676			33,819			19,408
Equity in net loss of unconsolidated partnerships		(267	)		(319	)		(379	)		(339	)		(317	)
Interest expense, net		(26,119	)		(25,902	)		(26,745	)		(26,817	)		(23,825	)
Other expense		(202	)		(3,190	)		(292	)		(208	)		(549	)

Income/(loss) from continuing operations		15,037			17,458			8,260			6,455			(5,283	)
Income from discontinued operations		—			—			—			—			49

Net income/(loss)		15,037			17,458			8,260			6,455			(5,234	)
Net (income)/loss attributable to noncontrolling interests		(234	)		(146	)		(93	)		(46	)		172

Net income/(loss) attributable to the Company		14,803			17,312			8,167			6,409			(5,062	)
Preferred stock dividends		—			(2,393	)		(3,651	)		(3,651	)		(3,651	)
Cost on redemption of preferred stock		—			(6,531	)		—			—			—

Net income/(loss) available to common stockholders	$	14,803		$	8,388		$	4,516		$	2,758		$	(8,713	)

Income/(loss) from continuing operations per share available to common stockholders:
Basic and diluted earnings per share	$	0.08		$	0.05		$	0.03		$	0.02		$	(0.06	)

Net income/(loss) per share available to common stockholders:
Basic and diluted earnings per share	$	0.08		$	0.05		$	0.03		$	0.02		$	(0.06	)

Weighted-average common shares outstanding:
Basic		186,735,157			159,692,470			152,790,669			152,785,451			152,775,422

Diluted		190,151,166			162,713,677			155,728,210			155,728,209			152,775,422

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

JUNE 30, 2013

(In thousands)


	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Restricted cash	$	71,046		$	4,068		$	3,554		$	3,443		$	2,485
Acquired above-market leases, net		18,349			12,432			18,099			20,234			22,292
Acquired below-market ground lease, net		19,767			11,310			11,368			11,426			11,484
Deferred loan costs, net		15,442			16,240			17,512			18,878			19,476
Lease incentives, net		20,627			21,140			21,741			21,990			21,925
Construction loan receivable, net (1)		92,567			55,981			21,695			1,275			1,275
Other		51,434			43,797			39,485			40,806			32,446

Other assets	$	289,232		$	164,968		$	133,454		$	118,052		$	111,383

Security deposits	$	13,667		$	12,186		$	12,417		$	12,296		$	12,501
Dividends and distributions payable		46,381			40,413			40,607			37,465			37,433
Accounts payable, accrued expenses and other liabilities		178,125			133,420			114,123			114,533			95,123
Derivative instruments		1,439			5,435			5,285			5,702			3,701
Acquired below-market leases, net		42,168			8,277			8,221			8,710			9,071

Accounts payable, accrued expenses and other liabilities	$	281,780		$	199,731		$	180,653		$	178,706		$	157,829

	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Lease termination revenue	$	17,316		$	24,001		$	2,483		$	935		$	81
Construction loan revenue		1,319			807			387			326			149
Other revenue		418			49			285			44			(29	)

Other revenue	$	19,053		$	24,857		$	3,155		$	1,305		$	201

Rental operations expenses	$	28,397		$	27,165		$	26,753		$	26,480		$	24,583
Real estate taxes		13,544			13,388			12,749			12,464			12,461

Rental operations	$	41,941		$	40,553		$	39,502		$	38,944		$	37,044

(Loss)/gain on extinguishment of debt	$	—		$	—		$	(100	)	$	—		$	34
Non-cash adjustment for securities		—			(2,825	)		—			—			(545	)
Realized gain on investments in equity securities		82			—			—			—			—
Realized gain/(loss) on foreign currency transactions		7			(160	)		16			40			—
Income tax expense		(291	)		(205	)		(208	)		(248	)		(38	)

Other expense	$	(202	)	$	(3,190	)	$	(292	)	$	(208	)	$	(549	)

(1)	Represents funding of draws on a $355 million construction loan secured by first priority mortgages on a 1.1 million square foot laboratory, office and retail development project located in Boston, Massachusetts, of which the Company’s total potential funding obligation is $255 million.

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FFO, CFFO AND AFFO (1)

JUNE 30, 2013

(In thousands)


	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Reconciliation of net income/(loss) available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income/(loss) available to common stockholders	$	14,803		$	8,388		$	4,516		$	2,758		$	(8,713	)
Adjustments:
Noncontrolling interests in operating partnership		263			154			86			53			(166	)
Depreciation & amortization - unconsolidated partnerships		367			369			323			323			323
Depreciation & amortization - consolidated entities		63,557			60,764			52,963			51,372			47,575
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(164	)		(30	)		(30	)		(28	)		(27	)

Funds from operations (FFO) - basic	$	78,826		$	69,645		$	57,858		$	54,478		$	38,992
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	80,514		$	71,333		$	59,546		$	56,166		$	40,680
Acquisition-related expenses		2,120			2,236			22			176			12,245

CFFO - diluted	$	82,634		$	73,569		$	59,568		$	56,342		$	52,925


Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements (3)		(12,599	)		(9,795	)		(5,738	)		(2,739	)		(1,716	)
Leasing commissions		(1,985	)		(1,580	)		(1,476	)		(2,001	)		(1,335	)
Gain on extinguishment of debt		—			—			(19	)		—			(34	)
Non-cash adjustment for securities		—			2,825			—			—			545
Non-cash debt adjustments		3,059			3,099			3,141			3,025			3,003
Amortization of lease incentives		543			627			576			561			659
Depreciation included in general and administrative expense		565			481			510			484			455
Non-cash equity compensation		3,067			3,011			2,860			3,094			2,887
Cost on redemption of preferred stock		—			6,531			—			—			—
Straight line rents		(4,269	)		(2,605	)		(6,330	)		(5,288	)		(4,300	)
Share of unconsolidated partnership adjustments (4)		31			40			34			26			26
Fair-value lease revenue		2,905			5,221			1,878			2,137			2,219

AFFO - diluted	$	73,951		$	81,424		$	55,004		$	55,641		$	55,334

(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 35.

(2)

The calculations of FFO, CFFO and AFFO per share diluted include 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 calculations of FFO, CFFO and AFFO per diluted share.

(3)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. Excludes first generation tenant improvements. For definitions of recurring capital expenditures and first and second generation leases, see page 36.

(4)	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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FFO, CFFO AND AFFO PER SHARE (1)

JUNE 30, 2013

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


	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
FFO - basic	$	78,826		$	69,645		$	57,858		$	54,478		$	38,992
FFO - diluted		80,514			71,333			59,546			56,166			40,680
CFFO - diluted		82,634			73,569			59,568			56,342			52,925
AFFO - diluted		73,951			81,424			55,004			55,641			55,334
FFO per share - basic	$	0.41		$	0.42		$	0.37		$	0.35		$	0.25
FFO per share - diluted (2)		0.40			0.41			0.36			0.34			0.24
CFFO per share - diluted (2)		0.41			0.42			0.36			0.34			0.32
AFFO per share - diluted (2)		0.37			0.47			0.33			0.33			0.33
Dividends and distributions declared per common share	$	0.235		$	0.235		$	0.235		$	0.215		$	0.215

CFFO payout ratio		57.3	%		56.0	%		65.3	%		63.2	%		67.2	%
AFFO payout ratio		63.5	%		50.0	%		71.2	%		65.2	%		65.2	%
Weighted-average common shares and units outstanding diluted (3)		191,457,377			164,111,880			157,265,242			157,223,682			157,111,463
Dilutive effect of exchangeable senior notes due 2030 (2)		10,259,496			10,259,496			10,259,496			10,127,232			10,127,232

Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		201,716,873			174,371,376			167,524,738			167,350,914			167,238,695

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(1)	For definitions and discussion of FFO, CFFO and AFFO, see page 35.

(2)

(3)

The three months ended June 30, 2012 includes 2,947,140 shares of OP and LTIP units, which are considered anti-dilutive for purposes of calculating diluted earnings per share. The three months ended June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012 include 1,306,211, 1,398,203, 1,537,032, 1,495,473 and 1,388,901 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

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RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1)

JUNE 30, 2013

(In thousands)


	Three Months Ended
	6/30/13			3/31/13			12/31/12		9/30/12		6/30/12
Reconciliation of net income/(loss) available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA:
Net income/(loss) available to common stockholders	$	14,803		$	8,388		$	4,516	$	2,758	$	(8,713	)
Interest expense, net		26,119			25,902			26,745		26,817		23,825
Interest expense - unconsolidated partnerships		252			250			263		256		254
Income tax expense		291			205			208		248		38
Depreciation & amortization - consolidated entities		63,557			60,764			52,963		51,372		47,575
Depreciation & amortization - unconsolidated partnerships		367			369			323		323		323

EBITDA		105,389			95,878			85,018		81,774		63,302
Noncontrolling interests		234			146			93		46		(172	)
Preferred dividends		—			2,393			3,651		3,651		3,651
Cost on redemption of preferred stock		—			6,531			—		—		—
Non-cash adjustment for securities		—			2,825			—		—		545
Acquisition-related expenses		2,120			2,236			22		176		12,245
Elan Corporation lease termination revenue, net		(13,547	)		(21,613	)		—		—		—

Adjusted EBITDA	$	94,196		$	88,396		$	88,784	$	85,647	$	79,571

(1)	For definitions and discussion of EBITDA and Adjusted EBITDA, see page 35.

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RECONCILIATION OF NET OPERATING INCOME (1)

JUNE 30, 2013

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Net income/(loss)	$	15,037		$	17,458		$	8,260		$	6,455		$	(5,234	)
Income from discontinued operations		—			—			—			—			(49	)
Equity in net loss of unconsolidated partnerships		267			319			379			339			317
Interest expense, net		26,119			25,902			26,745			26,817			23,825
Other expense		202			3,190			292			208			549

Income from operations		41,625			46,869			35,676			33,819			19,408
Depreciation and amortization		63,557			60,764			52,963			51,372			47,575
General and administrative		10,396			10,028			10,608			10,226			8,576
Acquisition-related expenses		2,120			2,236			22			176			12,245

Consolidated net operating income	$	117,698		$	119,897		$	99,269		$	95,593		$	87,804

Revenues:
Rental	$	108,092		$	102,956		$	103,978		$	101,467		$	95,708
Tenant recoveries		32,494			32,637			31,638			31,765			28,939
Other revenue (2)		19,053			24,857			3,155			1,305			201

Total revenues		159,639			160,450			138,771			134,537			124,848
Expenses:
Rental operations		41,941			40,553			39,502			38,944			37,044

Consolidated net operating income	$	117,698		$	119,897		$	99,269		$	95,593		$	87,804

Consolidated net operating income - cash basis (3)	$	98,031		$	98,784		$	92,728		$	92,032		$	86,800

Operating margin (4)		70.2	%		70.1	%		70.9	%		70.8	%		70.3	%
Operating expense recovery (5)		77.5	%		80.5	%		80.1	%		81.6	%		78.1	%

(1)	For a definition and discussion of net operating income, see page 35.

(2)	Includes lease termination income, see page 11 for detail.

(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

JUNE 30, 2013

(In thousands)


	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Mortgage notes payable	$	10,675		$	10,004		$	10,103		$	10,077		$	9,882
Exchangeable senior notes		1,688			1,688			1,688			1,688			1,688
Unsecured senior notes		10,334			10,334			10,334			10,334			7,767
Unsecured senior term loan		1,988			1,940			2,039			2,022			1,911
Unsecured line of credit		294			461			417			346			533
Line of credit fees		664			656			712			729			664
Derivative instruments		593			560			579			522			467

Interest expense, net - cash basis	$	26,236		$	25,643		$	25,872		$	25,718		$	22,912

Non-cash interest expense:
Amortization of fair-value of debt acquired		(310	)		(189	)		(159	)		(178	)		(130	)
Amortization of debt discounts		225			219			222			218			172
Amortization of deferred loan costs		1,374			1,351			1,354			1,255			1,225
Amortization of deferred interest costs		1,711			1,718			1,724			1,730			1,736
Amortization of put/call and preferred returns		59			—			—			—			—

Non-cash debt adjustments		3,059			3,099			3,141			3,025			3,003
Capitalized interest		(3,176	)		(2,840	)		(2,268	)		(1,926	)		(2,090	)

Interest expense, net	$	26,119		$	25,902		$	26,745		$	26,817		$	23,825

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COVERAGE RATIOS (1)

JUNE 30, 2013

(In thousands, except ratio amounts)


	Three Months Ended
	6/30/13			3/31/13			12/31/12			9/30/12			6/30/12
Interest coverage ratio
Adjusted EBITDA	$	94,196		$	88,396		$	88,784		$	85,647		$	79,571
Interest expense:
Interest expense, net		26,119			25,902			26,745			26,817			23,825
Interest expense - unconsolidated partnerships		252			250			263			256			254
Amortization of deferred interest costs		(1,711	)		(1,718	)		(1,724	)		(1,730	)		(1,736	)
Amortization of deferred loan costs		(1,374	)		(1,351	)		(1,354	)		(1,255	)		(1,225	)
Amortization of debt discounts		(225	)		(219	)		(222	)		(218	)		(172	)
Amortization of fair-value of debt acquired		310			189			159			178			130

Total interest expense	$	23,371		$	23,053		$	23,867		$	24,048		$	21,076

Interest coverage ratio		4.0			3.8			3.7			3.6			3.8

Fixed charge coverage ratio
Adjusted EBITDA	$	94,196		$	88,396		$	88,784		$	85,647		$	79,571
Fixed charges:
Interest expense, net		26,119			25,902			26,745			26,817			23,825
Interest expense - unconsolidated partnerships		252			250			263			256			254
Amortization of deferred interest costs		(1,711	)		(1,718	)		(1,724	)		(1,730	)		(1,736	)
Amortization of deferred loan costs		(1,374	)		(1,351	)		(1,354	)		(1,255	)		(1,225	)
Amortization of debt discounts		(225	)		(219	)		(222	)		(218	)		(172	)
Amortization of fair-value of debt acquired		310			189			159			178			130
Principal payments		2,232			2,072			2,072			2,063			1,975
Preferred dividends		—			2,393			3,651			3,651			3,651

Total fixed charges	$	25,603		$	27,518		$	29,590		$	29,762		$	26,702

Fixed charge coverage ratio		3.7			3.2			3.0			2.9			3.0

(1)	For a discussion of coverage ratios, see page 35.

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DEBT SUMMARY

JUNE 30, 2013

(Dollars in thousands)


	Stated Rate			Effective Rate			Principal Balance		Unamortized Premium / (Discount)			Carrying Value		Maturity Date
Consolidated Debt:
Mortgage Notes Payable:
9900 Belward Campus Drive		5.64	%		3.99	%	$	10,699	$	680		$	11,379		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		13,176		833			14,009		07/17
Center for Life Science \| Boston		7.75	%		7.75	%		336,485		—			336,485		06/14
4320 Forest Park Avenue (1)		4.00	%		2.70	%		21,000		390			21,390		09/14
Hershey Center for Applied Research (1)		6.15	%		4.71	%		13,686		1,498			15,184		05/27
500 Kendall Street (Kendall D)		6.38	%		5.45	%		59,062		2,226			61,288		12/18
3711 Market Street (1)		2.70	%		2.70	%		45,900		—			45,900		02/16
Shady Grove Road		5.97	%		5.97	%		143,979		—			143,979		09/16
University of Maryland BioPark I (1)		5.93	%		4.69	%		17,075		1,553			18,628		05/25
University of Maryland BioPark II (1)		5.20	%		4.33	%		63,446		4,142			67,588		09/21
University of Maryland BioPark Garage (1)		5.20	%		4.33	%		4,776		312			5,088		09/21
University of Miami Life Science & Technology Park (1)		4.00	%		2.89	%		20,000		664			20,664		02/16
University of Miami Life Science & Technology Park Bonds (1) (2)		0.10	%		0.10	%		60,000		—			60,000		11/42

Total / Weighted-Average on Mortgage Notes Payable		5.95	%		5.65	%		809,284		12,298			821,582
Unsecured 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		(1,466	)		398,534		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(1,906	)		248,094		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(2,006	)		247,994		07/22
Unsecured Variable Rate Debt:
Unsecured Senior Term Loan - U.S. Dollar (3)		1.85	%		2.64	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan - GBP (4)		2.14	%		2.39	%		152,080		—			152,080		03/17
Unsecured Line of Credit (5)		1.75	%		1.75	%		240,000		—			240,000		07/15

Total / Weighted-Average on Consolidated Debt		4.28	%		4.33	%	$	2,524,960	$	6,920		$	2,531,880

Share of Unconsolidated Partnership Debt:
BioPark Fremont (50%) (fixed) (1)		3.75	%		3.70	%		1,334		6			1,340		05/14
PREI Secured Construction Loan (20%) (variable)		3.20	%		3.20	%		27,795		—			27,795		08/13

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.23	%		3.22	%		29,129		6			29,135

Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		4.27	%		4.31	%	$	2,554,089	$	6,926		$	2,561,015

(1)	Assumed in connection with the Company’s merger with Wexford Science & Technology in May 2013.

(2)	The bonds are not secured by the property. Subsequent to quarter end, the University of Miami Life Science & Technology Park bonds were voluntarily prepaid in full prior to the scheduled maturity.

(3)

The Company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the unsecured senior term loan facility at 2.81% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings. Including the effect of these swaps, the weighted-average effective interest rate for the $395.7 million outstanding under the unsecured senior term loan facility was 2.64% at June 30, 2013.

(4)

The Company amended the unsecured senior term loan facility and converted $156.4 million of outstanding borrowings into British pounds sterling equal to £100 million. The principal balance represents the dollar amount based on the exchange rate of $1.52 to £1.00 at the end of the quarter. The Company entered into interest rate swap agreements that effectively fix the interest rate on £100 million at 2.39% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings.

(5)	Effective rate excludes facility fee of 35 bps on the entire capacity of the unsecured line of credit, or $750.0 million, which equals approximately $664,000 per quarter.

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DEBT MATURITIES

JUNE 30, 2013

(In thousands)

Weighted-average debt maturity is 5.6 years for consolidated debt (excluding extension options).


	2013		2014		2015		2016		2017		Thereafter		Total
Consolidated debt:
Mortgage Notes Payable:
Mortgage notes payable (1)	$	65,334	$	362,415	$	9,006	$	212,416	$	30,294	$	129,819	$	809,284
Unsecured debt:
Unsecured exchangeable senior notes due 2030 (2)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2016		—		—		—		400,000		—		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000
Unsecured senior notes due 2022		—		—		—		—		—		250,000		250,000
Unsecured senior term loan - U.S. Dollar		—		—		—		—		243,596		—		243,596
Unsecured senior term loan - GBP		—		—		—		—		152,080		—		152,080
Unsecured line of credit		—		—		240,000		—		—		—		240,000

Total unsecured debt		—		—		240,000		400,000		395,676		680,000		1,715,676
Total consolidated debt	$	65,334	$	362,415	$	249,006	$	612,416	$	425,970	$	809,819	$	2,524,960

Share of unconsolidated partnership debt:
BioPark Fremont (50%) (fixed)		—		1,334		—		—		—		—		1,334
PREI secured construction loan (20%) (variable)		27,795		—		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	27,795	$	1,334	$	—	$	—	$	—	$	—	$	29,129

Total consolidated and share of unconsolidated partnership debt	$	93,129	$	363,749	$	249,006	$	612,416	$	425,970	$	809,819	$	2,554,089

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(1)	Subsequent to quarter end, the University of Miami Life Science & Technology Park bonds were voluntarily prepaid in full prior to the scheduled maturity.

(2)

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

JUNE 30, 2013

(Shares in thousands)


	Three Months Ended
Summary of Common Shares	06/30/13			03/31/13			12/31/12			09/30/12			06/30/12
Earnings per share
Weighted-average common shares outstanding		186,735			159,692			152,791			152,785			152,775
Weighted-average OP and LTIP units outstanding		3,367			2,924			2,937			2,943			—
Dilutive effect of performance units		49			98			—			—			—

Diluted common shares - EPS		190,151			162,714			155,728			155,728			152,775

Funds from operations
Weighted-average common shares outstanding		186,735			159,692			152,791			152,785			152,775
Weighted-average OP and LTIP units outstanding		3,367			2,924			2,937			2,943			2,948
Dilutive effect of performance units		49			98			—			—			—
Dilutive effect of restricted stock		1,306			1,398			1,537			1,496			1,389
Dilutive effect of exchangeable senior notes due 2030		10,260			10,259			10,260			10,127			10,127

Diluted common shares - FFO		201,717			174,371			167,525			167,351			167,239

Closing common shares, OP and LTIP units outstanding		197,364			171,974			157,261			157,278			157,127
Preferred shares outstanding		—			—			7,920			7,920			7,920
High price	$	23.13		$	22.30		$	19.68		$	19.94		$	20.30
Low price	$	18.55		$	19.47		$	18.19		$	18.10		$	17.52
Average closing price	$	21.64		$	20.88		$	19.07		$	18.81		$	18.71
Closing price	$	20.23		$	21.60		$	19.33		$	18.72		$	18.68
Dividends per share - annualized	$	0.94		$	0.94		$	0.94		$	0.86		$	0.86
Closing dividend yield - annualized		4.6	%		4.4	%		4.9	%		4.6	%		4.6	%


Dividends per Share	06/30/13			03/31/13			12/31/12			09/30/12			06/30/12
Common Stock - BMR
Amount	$	0.235		$	0.235		$	0.235		$	0.215		$	0.215
Declared		June 14, 2013			March 15, 2013			December 12, 2012			September 14, 2012			June 15, 2012
Record		June 28, 2013			March 28, 2013			December 31, 2012			September 28, 2012			June 29, 2012
Paid		July 15, 2013			April 15, 2013			January 15, 2013			October 15, 2012			July 16, 2012
Preferred Stock - BMR PrA (1)
Amount		—			—		$	0.46094		$	0.46094		$	0.46094
Declared		—			—			December 12, 2012			September 14, 2012			June 15, 2012
Record		—			—			December 31, 2012			September 28, 2012			June 29, 2012
Paid		—			—			January 15, 2013			October 15, 2012			July 16, 2012

(1)	The Company voluntarily redeemed all shares of its Series A preferred stock on March 15, 2013, at a redemption price of $25.30217 per share (the sum of the $25.00 per share redemption price and a quarterly dividend of $0.46094 prorated through the redemption date).

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MARKET SUMMARY

JUNE 30, 2013


				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		3,031,932		$	164,417			32.8	%	$	54.23		$	175,431		29.8	%	$	57.86
Maryland		1,866,412			70,972			14.2	%		38.03			86,846		14.8	%		46.53
San Diego		1,773,538			59,420			11.9	%		33.50			74,697		12.7	%		42.12
San Francisco		2,374,619			58,095			11.6	%		24.46			70,386		12.0	%		29.64
New York / New Jersey		1,505,550			50,733			10.1	%		33.70			66,715		11.3	%		44.31
Pennsylvania		1,004,026			25,695			5.1	%		25.59			29,888		5.1	%		29.77
Cambridge, UK		468,964			16,105			3.2	%		34.34			16,105		2.7	%		34.34
North Carolina		737,475			12,926			2.6	%		17.53			16,837		2.9	%		22.83
Seattle		265,142			12,417			2.5	%		46.83			14,516		2.5	%		54.75
University Related - Other		1,022,372			30,219			6.0	%		29.56			36,557		6.2	%		35.76

Total portfolio / weighted-average		14,050,030		$	500,999			100.0	%	$	35.66		$	587,978		100.0	%	$	41.85


	Percent Leased
Market	Total Operating Portfolio			Development (3)			Redevelopment (3)			Unconsolidated Partnership Portfolio (4)
Boston		97.8	%		—			—			44.7	%
Maryland		91.9	%		—			100.0	%		—
San Diego		88.6	%		—			—			100.0	%
San Francisco		80.0	%		—			—			—
New York / New Jersey		83.7	%		100.0	%		—			—
Pennsylvania		85.2	%		67.7	%		—			—
Cambridge, UK		99.3	%		—			—			—
North Carolina		97.9	%		76.2	%		—			—
Seattle		72.4	%		—			—			—
University Related - Other		87.7	%		49.8	%		—			—

Total portfolio (5)		88.6	%		72.4	%		72.9	%		56.0	%

Total portfolio weighted-average leased % (6)		90.8	%		65.5	%		77.6	%		56.0	%

(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)	See page 25 for detail of the consolidated portfolio and page 35 for definitions of terms.

(4)	See page 27 for detail of the unconsolidated partnership portfolio.

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

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

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2013


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		6/30/13			3/31/13
	Boston
1	Albany Street	May 31, 2005	Stabilized		2		75,003		0.5	%		75,003		100.0	%		100.0	%
2	320 Bent Street	December 14, 2011	Stabilized		1		195,198		1.2	%		191,576		98.1	%		98.1	%
3	301 Binney Street	December 14, 2011	Stabilized		1		417,290		2.6	%		403,381		96.7	%		96.7	%
4	301 Binney Street Garage	December 14, 2011	Stabilized		1		503 Stalls		n/a			503 Stalls		100.0	%		100.0	%
5	210 Broadway	February 9, 2012	Lease Up		1		64,812		0.4	%		48,473		74.8	%		50.7	%
6	Center for Life Science \| Boston	November 17, 2006	Stabilized		1		704,159		4.4	%		696,331		98.9	%		98.9	%
7	Charles Street	April 7, 2006	Stabilized		1		47,912		0.3	%		47,912		100.0	%		100.0	%
8	320 Charles Street	June 18, 2013	Stabilized		1		99,513		0.6	%		99,513		100.0	%		n/a
9	Coolidge Avenue	April 5, 2005	Lease Up		1		37,684		0.2	%		29,431		78.1	%		78.1	%
10	21 Erie Street	May 31, 2005	Stabilized		1		48,627		0.3	%		48,627		100.0	%		100.0	%
11	40 Erie Street	May 31, 2005	Stabilized		1		100,854		0.6	%		100,854		100.0	%		100.0	%
12	47 Erie Street Parking Structure	May 31, 2005	Stabilized		1		447 Stalls		n/a			447 Stalls		100.0	%		100.0	%
13	Fresh Pond Research Park	April 5, 2005	Stabilized		6		90,702		0.6	%		89,176		98.3	%		98.3	%
14	50 Hampshire Street	February 9, 2012	Stabilized		1		183,052		1.2	%		183,052		100.0	%		100.0	%
15	60 Hampshire Street	February 9, 2012	Redevelopment		1		39,014		0.2	%		—		—			100.0	%
16	Kendall Crossing Apartments	December 14, 2011	Stabilized		1		37 Apts.		n/a			36 Apts.		96.4	%		96.6	%
17	450 Kendall Street (Kendall G)	May 31, 2011	Development		1		63,000		0.4	%		—		—			n/a
18	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		2.2	%		346,535		99.2	%		99.2	%
19	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		1.9	%		302,919		100.0	%		100.0	%
20	Sidney Street	May 31, 2005	Stabilized		1		191,904		1.2	%		191,904		100.0	%		100.0	%
21	Vassar Street	May 31, 2005	Lease Up		1		60,845		0.4	%		51,180		84.1	%		100.0	%

	Total Boston				27		3,071,813		19.2	%		2,905,867		94.6	%		97.6	%

	Maryland
22	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.5	%		77,225		100.0	%		100.0	%
23	9900 Belward Campus Drive	July 18, 2012	Lease Up		1		49,317		0.3	%		34,619		70.2	%		74.1	%
24	9901 Belward Campus Drive	July 18, 2012	Stabilized		1		57,152		0.4	%		57,110		99.9	%		99.9	%
25	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		1.8	%		289,912		100.0	%		100.0	%
26	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.3	%		51,181		100.0	%		100.0	%
27	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		0.8	%		122,600		100.0	%		100.0	%
28	9708-9714 Medical Center Drive	May 3, 2010	Lease Up		3		92,124		0.6	%		16,067		17.4	%		17.4	%
29	1701 / 1711 Research Boulevard	May 9, 2011	Redevelopment		1		104,743		0.7	%		104,743		100.0	%		100.0	%
30	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		4.0	%		635,058		100.0	%		100.0	%
31	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.6	%		91,592		100.0	%		100.0	%
32	University of Maryland BioPark I	May 31, 2013	Stabilized		1		75,517		0.5	%		75,517		100.0	%		n/a
33	University of Maryland BioPark II	May 31, 2013	Lease Up		1		235,959		1.5	%		208,383		88.3	%		n/a
34	University of Maryland BioPark Garage	May 31, 2013	Stabilized		1		638 Stalls		n/a			411 Stalls		73.0	%		n/a
35	50 West Watkins Mill Road	May 7, 2010	Lease Up		1		57,410		0.4	%		20,000		34.8	%		34.8	%
36	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.5	%		82,405		100.0	%		100.0	%

	Total Maryland				21		2,022,195		12.9	%		1,866,412		92.3	%		92.6	%

	San Diego
37	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.2	%		35,344		100.0	%		100.0	%
38	Bernardo Center Drive	August 13, 2004	Stabilized		1		61,286		0.4	%		61,286		100.0	%		100.0	%
39	Coast 9	October 15, 2010	Lease Up		8		162,074		1.0	%		123,342		76.1	%		77.7	%
40	4570 Executive Drive	September 17, 2010	Lease Up		1		125,219		0.8	%		106,757		85.3	%		85.3	%
41	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.2	%		28,704		100.0	%		100.0	%
42	Gazelle Court	March 30, 2010	Stabilized		1		176,000		1.1	%		176,000		100.0	%		100.0	%
43	3525 John Hopkins Court	December 28, 2010	Stabilized		1		48,306		0.3	%		48,306		100.0	%		100.0	%
44	3545-3575 John Hopkins Court	August 16, 2006	Lease Up		1		72,192		0.5	%		61,173		84.7	%		84.7	%
45	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		196,557		1.2	%		196,557		100.0	%		100.0	%
46	6122-6126 Nancy Ridge Drive	April 25, 2012	Stabilized		1		68,000		0.4	%		68,000		100.0	%		100.0	%
47	6828 Nancy Ridge Drive	April 21, 2005	Lease Up		1		42,138		0.3	%		17,707		42.0	%		100.0	%
48	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.4	%		66,745		100.0	%		100.0	%
49	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.4	%		37,219		54.7	%		54.7	%
50	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		0.7	%		70,546		67.0	%		69.3	%
51	10240 Science Center Drive	September 23, 2010	Stabilized		1		49,347		0.3	%		49,347		100.0	%		100.0	%
52	10255 Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.3	%		53,740		100.0	%		100.0	%
53	Sorrento Plaza	December 18, 2010	Stabilized		2		31,184		0.2	%		31,184		100.0	%		100.0	%

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

June 30, 2013


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		6/30/13			3/31/13
	San Diego (Continued)
54	Sorrento Valley Boulevard	December 7, 2006	Lease Up		1		54,924		0.3	%		—		—			—
55	11388 Sorrento Valley Road	September 10, 2010	Stabilized		1		35,940		0.2	%		35,940		100.0	%		100.0	%
56	Summers Ridge	June 8, 2012	Stabilized		—		—		n/a			—		100.0	%		100.0	%
57	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.5	%		81,204		100.0	%		100.0	%
58	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.6	%		94,866		100.0	%		100.0	%
59	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.7	%		104,870		100.0	%		100.0	%
60	Waples Street	March 1, 2005	Stabilized		1		50,055		0.3	%		50,055		100.0	%		100.0	%
61	Wateridge Circle	November 1, 2011	Stabilized		3		106,490		0.7	%		101,783		95.6	%		70.7	%

	Total San Diego				39		1,918,547		12.0	%		1,700,675		88.6	%		88.8	%

	San Francisco
62	Ardentech Court	November 18, 2004	Stabilized		1		55,588		0.3	%		55,588		100.0	%		100.0	%
63	Ardenwood Venture (2)	June 14, 2006	Lease Up		1		72,500		0.5	%		60,339		83.2	%		83.2	%
64	Bayshore Boulevard	August 17, 2004	Stabilized		3		183,344		1.2	%		183,344		100.0	%		100.0	%
65	Bridgeview Technology Park I	September 10, 2004	Lease Up		2		201,567		1.3	%		125,144		62.1	%		62.1	%
66	Bridgeview Technology Park II	March 16, 2005	Lease Up		1		50,400		0.3	%		28,714		57.0	%		57.0	%
67	550 Broadway Street	April 27, 2012	Stabilized		1		71,239		0.4	%		71,239		100.0	%		100.0	%
68	Dumbarton Circle	May 27, 2005	Lease Up		1		44,000		0.3	%		—		—			—
69	Gateway Business Park	October 26, 2010	Lease Up		4		176,503		1.1	%		153,035		86.7	%		82.2	%
70	Industrial Road	August 17, 2004	Stabilized		1		175,144		1.1	%		175,144		100.0	%		100.0	%
71	Kaiser Drive	August 25, 2005	Lease Up		1		87,953		0.6	%		49,915		56.8	%		56.8	%
72	Pacific Industrial Center	July 11, 2006	Lease Up		1		305,026		1.9	%		252,119		82.7	%		71.9	%
73	Pacific Research Center North	July 11, 2006	Lease Up		6		661,245		4.2	%		495,958		75.0	%		73.5	%
74	Pacific Research Center South	July 11, 2006	Lease Up		3		423,246		2.7	%		263,543		62.3	%		62.3	%
75	Science Center at Oyster Point	October 26, 2010	Stabilized		2		204,887		1.3	%		204,887		100.0	%		100.0	%
76	Woodside Technology Park	February 28, 2013	Stabilized		3		255,650		1.6	%		255,650		100.0	%		100.0	%

	Total San Francisco				31		2,968,292		18.8	%		2,374,619		80.0	%		78.3	%

	New York / New Jersey
77	Ardsley Park	June 23, 2011	Stabilized		5		160,500		1.0	%		160,500		100.0	%		100.0	%
78	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.5	%		46,386		64.2	%		64.2	%
79	Landmark at Eastview	August 12, 2004	Lease Up		5		800,671		4.6	%		641,144		80.1	%		82.8	%
80	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		2.3	%		360,520		100.0	%		100.0	%
81	Landmark at Eastview III	August 12, 2004	Development		2		297,000		1.9	%		297,000		100.0	%		n/a
82	One Research Way	May 31, 2006	Lease Up		1		49,421		0.3	%		—		—			—

	Total New York / New Jersey				17		1,740,412		10.6	%		1,505,550		86.5	%		85.2	%

	Pennsylvania
83	Eisenhower Road	August 13, 2004	Stabilized		1		27,750		0.2	%		27,750		100.0	%		100.0	%
84	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.4	%		71,500		100.0	%		100.0	%
85	Hershey Center for Applied Research	May 31, 2013	Lease Up		1		81,213		0.5	%		71,016		87.4	%		n/a
86	King of Prussia	August 11, 2004	Stabilized		5		374,387		2.4	%		374,387		100.0	%		100.0	%
87	3711 Market Street (3)	May 31, 2013	Lease Up		1		154,793		1.0	%		137,294		88.7	%		n/a
88	3737 Market Street (4)	May 31, 2013	Development		1		272,678		1.7	%		184,487		67.7	%		n/a
89	Phoenixville Pike	April 5, 2005	Lease Up		1		104,400		0.7	%		74,408		71.3	%		86.7	%
90	Spring Mill Drive	July 20, 2006	Lease Up		1		76,561		0.5	%		63,184		82.5	%		82.5	%
91	900 Uniqema Boulevard	January 13, 2006	Lease Up		1		11,293		0.1	%		—		—			100.0	%
92	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.4	%		—		—			—

	Total Pennsylvania				14		1,234,396		7.9	%		1,004,026		81.3	%		88.0	%

	Cambridge, UK
93	Granta Park	June 12, 2012	Stabilized		11		472,234		3.0	%		468,964		99.3	%		99.5	%

	Total Cambridge, UK				11		472,234		3.0	%		468,964		99.3	%		99.5	%

	North Carolina
94	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.4	%		61,603		100.0	%		100.0	%
95	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.3	%		40,541		83.8	%		83.8	%
96	Piedmont Triad Research - Wake 90	May 31, 2013	Development		1		475,742		3.0	%		362,742		76.2	%		n/a
97	Wake Forest Biotech Place	May 31, 2013	Stabilized		1		242,000		1.5	%		242,000		100.0	%		n/a
98	Weston Parkway	December 17, 2010	Stabilized		1		30,589		0.2	%		30,589		100.0	%		100.0	%

	Total North Carolina				5		858,328		5.4	%		737,475		85.9	%		94.4	%

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PROPERTY LISTING - CONSOLIDATED PORTFOLIO

JUNE 30, 2013


			Property			Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		6/30/13			3/31/13
	Seattle
99	Elliott Avenue	August 24, 2004	Lease Up		1		151,194		1.0	%		84,657		56.0	%		59.7	%
100	530 Fairview Avenue	January 12, 2006	Stabilized		1		96,305		0.6	%		96,305		100.0	%		100.0	%
101	Monte Villa Parkway	August 17, 2004	Lease Up		1		51,000		0.3	%		30,167		59.2	%		59.2	%
102	217th Place	November 21, 2006	Lease Up		1		67,799		0.4	%		54,013		79.7	%		79.7	%

	Total Seattle				4		366,298		2.3	%		265,142		72.4	%		73.9	%

	University Related - Other
103	BRDG Park at Danforth Plant Science Center	May 31, 2013	Lease Up		1		109,731		0.7	%		91,180		83.1	%		n/a
104	4320 Forest Park Avenue	May 31, 2013	Stabilized		1		152,664		1.0	%		152,664		100.0	%		n/a
105	Heritage @ 4240	May 31, 2013	Development		1		183,842		1.2	%		91,500		49.8	%		n/a
106	Innovation Research Park at ODU I	May 31, 2013	Stabilized		1		95,634		0.6	%		86,094		90.0	%		n/a
107	Innovation Research Park at ODU II	May 31, 2013	Lease Up		1		95,670		0.6	%		63,639		66.5	%		n/a
108	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.5	%		78,023		100.0	%		100.0	%
109	University of Miami Life Science & Technology Park	May 31, 2013	Lease Up		1		251,800		1.6	%		181,357		72.0	%		n/a
110	University Tech Park at IIT	May 31, 2013	Stabilized		1		127,931		0.8	%		127,931		100.0	%		n/a
111	Walnut Street	July 7, 2006	Stabilized		4		149,984		0.9	%		149,984		100.0	%		100.0	%

	Total University Related - Other				13		1,245,279		7.9	%		1,022,372		82.1	%		100.0	%

	Total				182		15,897,794		100.0	%		13,851,102		87.1	%		88.7	%

(1)	For a definition of Property Status, see page 36.

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

(3)	The Company owns 60% of the limited liability company that owns the 3711 Market Street property.

(4)	The Company owns 68% of the limited liability company that owns the 3737 Market Street property.

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DEVELOPMENT, REDEVELOPMENT AND DEVELOPMENT POTENTIAL

JUNE 30, 2013

(Dollars in thousands)


Property	Market	Rentable Square Feet		Percent Leased			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
Development:
Heritage @ 4240	University Related - Other		183,842		49.8	%	$	11,300	$	26,200		Q1 2014
450 Kendall Street (Kendall G)	Boston		63,000		—			9,300		44,100		Q3 2015
Landmark at Eastview III	New York / New Jersey		297,000		100.0	%		4,700		121,400		Q3 2015
3737 Market Street	Pennsylvania		272,678		67.7	%		26,200		82,700		Q3 2014
Piedmont Triad Research - Wake 90	North Carolina		475,742		76.2	%		32,800		63,500		Q1 2014

Total / weighted-average			1,292,262		72.4	%	$	84,300	$	337,900
Redevelopment:
60 Hampshire Street	Boston		39,014		—		$	4,400	$	16,600		Q2 2014
1701 / 1711 Research Blvd	Maryland		104,743		100.0	%		13,300		28,200		Q1 2014

Total / weighted-average			143,757		72.9	%	$	17,700	$	44,800
Total							$	102,000	$	382,700


Development Potential:			Estimated		Total
	Pre-Development		Developable		Development
Market	Square Feet		Square Feet		Potential
Boston		—		50,000		50,000
Maryland		—		974,000		974,000
San Diego		275,000		—		275,000
San Francisco		660,000		1,334,000		1,994,000
New York / New Jersey		—		667,000		667,000
Pennsylvania		—		103,000		103,000
Cambridge, UK		—		138,000		138,000
Seattle		108,000		40,000		148,000

Total		1,043,000		3,306,000		4,349,000

(1)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but for Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through June 30, 2013.

(2)	Includes construction 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.

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CAPITAL EXPENDITURES

JUNE 30, 2013

(Dollars in thousands)


Capital Expenditures:	Three Months Ended
	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12

Development / Pre-Development	$	5,003	$	3,241	$	1,832	$	1,540	$	1,582
Redevelopment		494		1,395		1,411		2,429		8,117
Tenant improvements - first generation (1)		6,446		13,933		11,831		19,727		17,184
Recurring capital expenditures and second generation tenant improvements (1) (2)		12,599		9,795		5,738		2,739		1,716
Other capital		12,144		10,886		7,853		4,067		9,034

Total capital expenditures	$	36,686	$	39,250	$	28,665	$	30,502	$	37,633


Capitalized Interest:	Investment		Three Months Ended
	to Date (3)		6/30/13			3/31/13			12/31/12			9/30/12			6/30/12

Development	$	84,300	$	522		$	—		$	—		$	—		$	—
Redevelopment		17,700		297			611			630			618			924
Other Capital Improvements (4)		91,500		948			755			742			434			317
Pre-Development		110,000		1,409			1,474			896			874			849

Total capitalized interest	$	303,500	$	3,176		$	2,840		$	2,268		$	1,926		$	2,090

Average interest rate capitalized				5.24	%		5.20	%		5.22	%		5.21	%		5.23	%

(1)	For definitions of first and second generation leases, see page 36.

(2)	Includes revenue enhancing and non-revenue enhancing recurring capital expenditures. For a definition of recurring capital expenditures, see page 36.

(3)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but for Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through June 30, 2013.

(4)	Includes improvements on operating properties, including major tenant improvement projects on properties which are not considered to be in Development, Redevelopment or Pre-development during the three months ended June 30, 2013.

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PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS

JUNE 30, 2013

(Dollars in thousands)

Rentable

Leased

Property

Square

Percent Leased

Property

Acquisition Date

Status (1)

Buildings

Feet

6/30/13

3/31/13

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

282,217

126,065

44.7

45.0

Boston

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1,409 Stalls

100.0

Boston


Total assets	$	268,177
Total debt (2)		151,916
Current annualized base rent		8,842
BioMed’s net investment in unconsolidated partnerships	$	32,250
BioMed’s pro rata share of debt		29,129
BioMed ownership percentage		20	%

(1)	For a definition of Property Status, see page 36.

(2)	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.

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LEASE EXPIRATIONS

JUNE 30, 2013

The weighted-average remaining lease term is 8.2 years for the total portfolio.


						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		16,003		0.1	%	$	151		—		$	9.44	$	151		—		$	9.44
Third quarter 2013		123,296		0.9	%		4,368		0.9	%		35.43		4,351		0.7	%		35.29
Fourth quarter 2013		47,778		0.3	%		2,473		0.5	%		51.76		2,833		0.5	%		59.30

2013		171,074		1.2	%		6,841		1.4	%		39.99		7,184		1.2	%		41.99
2014		910,369		6.5	%		25,446		5.1	%		27.95		25,278		4.3	%		27.77
2015		581,056		4.1	%		17,863		3.6	%		30.74		18,525		3.2	%		31.88
2016		1,176,131		8.4	%		45,233		9.0	%		38.46		48,448		8.2	%		41.19
2017		635,506		4.5	%		18,422		3.7	%		28.99		20,518		3.5	%		32.29
2018		1,836,753		13.1	%		77,743		15.5	%		42.33		84,797		14.4	%		46.17
2019		871,553		6.2	%		25,505		5.1	%		29.26		28,167		4.8	%		32.32
2020		814,879		5.8	%		31,908		6.4	%		39.16		32,016		5.4	%		39.29
2021		589,079		4.2	%		16,942		3.4	%		28.76		19,314		3.3	%		32.79
2022		781,682		5.6	%		19,133		3.8	%		24.48		24,148		4.1	%		30.89
Thereafter		5,665,945		40.3	%		215,812		43.0	%		38.09		279,432		47.6	%		49.32

Total / weighted-average		14,050,030		100.0	%	$	500,999		100.0	%	$	35.66	$	587,978		100.0	%	$	41.85

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(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

JUNE 30, 2013


	Leased Square Feet
Expiration	Boston		Maryland		San Diego		San Francisco		New York/ New Jersey		Pennsylvania		Cambridge, UK		North Carolina		Seattle		University/ Other		Total
Month-to-month		—		—		728		—		14,499		—		776		—		—		—		16,003
2013		59,040		15,600		59,872		26,429		—		2,906		—		—		—		7,227		171,074
2014		127,532		53,102		77,677		136,769		—		440,594		2,141		—		11,385		61,169		910,369
2015		36,527		30,668		282,673		116,005		2,833		38,559		21,576		16,492		—		35,723		581,056
2016		413,034		13,098		39,661		273,632		40,613		32,797		—		92,192		36,885		234,219		1,176,131
2017		104,243		107,288		104,670		138,627		138,013		24,440		—		—		11,390		6,835		635,506
2018		1,135,652		72,004		332,621		171,584		24,944		14,389		—		15,117		42,628		27,814		1,836,753
2019		24,215		259,383		81,204		133,571		—		33,891		117,919		8,932		49,664		162,774		871,553
2020		367,010		130,846		72,863		49,915		18,686		33,029		136,434		—		—		6,096		814,879
2021		32,265		45,434		8,365		230,311		40,914		71,500		160,290		—		—		—		589,079
2022		42,385		4,399		17,707		629,346		27,524		46,481		—		—		—		13,840		781,682
Thereafter		690,029		1,134,590		695,497		468,430		1,197,524		265,440		29,828		604,742		113,190		466,675		5,665,945

Total		3,031,932		1,866,412		1,773,538		2,374,619		1,505,550		1,004,026		468,964		737,475		265,142		1,022,372		14,050,030

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10 LARGEST TENANTS

JUNE 30, 2013

BioMed’s properties were leased to 295 tenants.


	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1) (In thousands)		Annualized Base Rent per Leased Sq Ft Current		Percent of Annualized Base Rent Current Total Portfolio			Lease Expiration
1	GlaxoSmithKline plc (2)		924,970		6.6	%	$	45,373	$	49.05		9.1	%		June 2026
2	Regeneron Pharmaceuticals, Inc. (3)		972,878		6.9	%		36,767		37.79		7.3	%		Multiple
3	Vertex Pharmaceuticals Incorporated (4)		685,286		4.9	%		36,323		53.00		7.3	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		2.6	%		25,543		70.49		5.1	%		July 2023
5	Sanofi (5)		418,003		3.0	%		19,471		46.58		3.9	%		Multiple
6	Ironwood Pharmaceuticals, Inc.		303,259		2.2	%		15,302		50.46		3.1	%		February 2018
7	Children’s Hospital Corporation (6)		200,081		1.4	%		14,360		71.77		2.9	%		May 2023
8	Merck & Co., Inc. (7)		175,893		1.3	%		9,358		53.20		1.9	%		Multiple
9	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		2.7	%		9,267		24.75		1.8	%		April 2014
10	Bristol-Myers Squibb (8)		270,047		1.9	%		8,999		33.32		1.8	%		Multiple

	Total / weighted-average (9)		4,687,168		33.5	%	$	220,763	$	47.10		44.2	%

(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)	The Company’s tenant is Human Genome Sciences (HGS), a wholly owned subsidiary of GlaxoSmithKline plc (GSK).

(3)

During the quarter, the Company entered into a build-to-suit transaction to construct two new buildings pre-leased to Regeneron for a 15 year term totaling approximately 297,000 square feet at Landmark at Eastview. 2,833 square feet expire July 2015, 312,525 square feet expire July 2024 and 657,520 square feet expire July 2029.

(4)	81,204 square feet are leased with a subsidiary of Vertex Pharmaceuticals Incorporated. 292,758 square feet expire January 2016, 20,608 square feet expire May 2017, 290,716 square feet expire May 2018 and 81,204 square feet expire January 2019.

(5)	343,000 square feet expire August 2018 and 75,003 square feet expire October 2018.

(6)	This tenant guarantees rent on 49,866 square feet leased at the Center for Life Science• Boston.

(7)	This tenant guarantees rent on 30,589 square feet leased at Weston Parkway. 145,304 square feet expire September 2013 and 30,589 square feet expire January 2016.

(8)	77,539 square feet expire February 2015, 29,218 square feet expire April 2018, 133,123 square feet expire December 2022 and 30,167 square feet expire April 2024.

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

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SAME PROPERTY ANALYSIS

JUNE 30, 2013

(Dollars in thousands)


	Three Months Ended
	6/30/13			6/30/12			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		11,960,338			11,960,338
Percent of total portfolio		73.6	%		92.5	%
Percent leased		86.6	%		84.8	%
Revenues:
Rental	$	95,667		$	92,473			3.5	%
Tenant recoveries		31,080			29,947			3.8	%

Total revenues		126,747			122,420			3.5	%
Expenses:
Rental operations		37,154			36,561			1.6	%

Same property net operating income (2)	$	89,593		$	85,859			4.3	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(3,335	)		(1,715	)		94.5	%

Same property net operating income - cash basis (2) (3)	$	86,258		$	84,144			2.5	%

Rental revenue - cash basis (3)	$	91,324		$	89,317			2.2	%

Same property net operating income, excluding 180 and 200 Oyster Point properties (2) (4)	$	87,397		$	82,911			5.4	%

Same property net operating income - cash basis, excluding 180 and 200 Oyster Point properties (2) (3) (4)	$	85,517		$	81,503			4.9	%

(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 35. 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.

(4)	The 180 and 200 Oyster Point properties were leased by Life Technologies commencing in the quarter ending June 30, 2013, following a lease termination by Elan Corporation for which the Company received a $46.5 million termination payment.

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ACQUISITIONS AND MERGERS

JUNE 30, 2013


Acquisitions and Mergers Detail for 2013:	Market	Closing Date	Rentable Square Feet		Investment		Percent Leased at Acquisition

Property
					(In thousands)
First Quarter 2013
Woodside Technology Park	San Francisco	February 28, 2013		255,650	$	87,000		100.0	%
The Campus at Lincoln Centre (1)	San Francisco	March 20, 2013		—		37,000		n/a

First quarter total				255,650	$	124,000		100.0	%


Second Quarter 2013
Wexford Science & Technology (2)	Various	May 31, 2013		2,555,174	$	669,100		81.2	%
320 Charles Street (3)	Boston	June 18, 2013		99,513		49,518		100.0	%

Second quarter total				2,654,687	$	718,618		81.9	%

Total 2013 Acquisitions & Mergers				2,910,337	$	842,618		83.5	%

(1)	Includes approximately 280,000 square feet of potential development.

(2)

Includes approximately 935,000 square feet in development and approximately 300,000 square feet of potential development. Investment includes the issuance of 5,568,227 shares of common stock of the Company and 336,960 operating partnership units of BioMed Realty, L.P. to the sellers as part of the consideration for the merger.

(3)	Investment includes the issuance of 2,034,211 operating partnership units of BioMed Realty, L.P. to the seller as part of the consideration for the acquisition.

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LEASING ACTIVITY (1)

JUNE 30, 2013


	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft		Pre-Leased Square Feet			Current Annualized Base Rent per Pre-Leased Sq Ft
Leased Square Feet as of March 31, 2013		11,625,092					328,819
Acquisitions		2,173,315		$	25.68		13,373		$	18.00
Expirations		(586,369	)		40.01
Terminations		(244,970	)		50.14
Pre-leased delivery		223,995			32.65		(223,995	)		32.65
Renewals, amendments, and extensions		475,250			46.67
New leases - 1st generation (2)		383,717			33.02
New leases - 2nd generation (2)							39,053			32.13

Leased Square Feet as of June 30, 2013		14,050,030					157,250


	Three Months Ended
Leased Square Feet	6/30/13			3/31/13			12/31/12		9/30/12		6/30/12
Renewals, amendments, and extensions		475,250			164,004			368,299		176,655		87,383
New leases		422,770			419,731			256,576		190,705		263,432

Gross Leasing Activity		898,020			583,735			624,875		367,360		350,815

Net Absorption (3)		(45,377	)		(180,165	)		144,516		115,493		186,911

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

(2)	For definitions of first and second generation leases, see page 36.

(3)

For the quarter ended June 30, 2013, excludes the Regeneron lease for approximately 297,000 square feet at the Landmark at Eastview III property. Under the lease, Regeneron will expand into two new buildings to be constructed by the Company at the property. Regeneron has leased the to-be-built laboratory and office space for a 15-year term.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS AND TENANT CONCESSIONS

JUNE 30, 2013


	Three Months Ended
	6/30/13		3/31/13		12/31/12		9/30/12		6/30/12
Renewals, Amendments, and Extensions (1)
Number of renewals		12		13		17		6		7
Square feet		475,250		164,004		368,299		176,655		87,383
Tenant improvement costs per square foot (2)	$	1.42	$	15.21	$	1.23	$	21.68	$	0.17
Leasing commission costs per square foot (2)		4.28		0.58		3.54		6.23		1.15
Tenant concession costs per square foot (2) (3)		0.03		2.88		17.01		2.60		0.24

Total tenant improvement, leasing commission, and tenant concession costs psf	$	5.73	$	18.67	$	21.78	$	30.51	$	1.56

New Leases - 1st Generation (4)
Number of leases		6		7		5		8		8
Square feet		383,717		65,779		149,987		100,992		219,552
Tenant improvement costs per square foot (2)	$	88.59	$	39.46	$	61.97	$	1.14	$	118.40
Leasing commission costs per square foot (2)		10.69		7.99		7.25		7.77		17.19
Tenant concession costs per square foot (2) (3)		19.11		4.99		22.00		4.93		4.28

Total tenant improvement, leasing commission, and tenant concession costs psf	$	118.39	$	52.44	$	91.22	$	13.84	$	139.87

New Leases - 2nd Generation (4)
Number of leases		2		9		8		8		8
Square feet		39,053		353,952		106,589		89,713		43,880
Tenant improvement costs per square foot (2)	$	27.05	$	26.03	$	16.86	$	46.58	$	7.93
Leasing commission costs per square foot (2)		8.12		15.90		8.99		7.48		5.62
Tenant concession costs per square foot (2) (3)		—		3.51		10.15		1.55		7.16

Total tenant improvement, leasing commission, and tenant concession costs psf	$	35.17	$	45.44	$	36.00	$	55.61	$	20.71

Total
Number of renewals/leases		20		29		30		22		23
Square feet		898,020		583,735		624,875		367,360		350,815
Tenant improvement costs per square foot (2)	$	39.78	$	24.50	$	18.47	$	22.42	$	75.14
Leasing commission costs per square foot (2)		7.19		10.70		5.36		6.96		11.74
Tenant concession costs per square foot (2) (3)		8.18		3.50		17.04		2.97		3.64

Total tenant improvement, leasing commission, and tenant concession costs psf	$	55.15	$	38.70	$	40.87	$	32.35	$	90.52

(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 is executed, 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 36.

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NON-GAAP FINANCIAL MEASURE DEFINITIONS

JUNE 30, 2013

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.

FFO, CFFO and AFFO

We present funds from operations, or FFO, FFO excluding acquisition-related expenses, or CFFO, and adjusted funds from operations, or AFFO, available to common shares and OP units because we consider them to be 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, CFFO and AFFO when reporting their results.

FFO, CFFO and AFFO are 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, CFFO and AFFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide performance measures that, when compared year over year, reflect 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 depreciable 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 CFFO by adding acquisition-related expenses to FFO. We calculate AFFO by adding to CFFO: (a) non-cash revenues and expenses, (b) recurring capital expenditures and second generation tenant improvements and (c) leasing commissions.

Our computations may differ from the methodologies for calculating FFO, CFFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO, CFFO 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, CFFO and AFFO should not be considered alternatives to net income/(loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as indicators of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. FFO, CFFO 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), Adjusted EBITDA and Pro Forma 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 securities, (e) gains or losses from sales of real estate and (f) acquisition-related expenses, and by subtracting from EBITDA the lease termination fee related to the Elan Corporation lease termination at our Science Center at Oyster Point property in 2013. We calculate Pro Forma Adjusted EBITDA by adding the EBITDA of Wexford Science & Technology from May 31, 2013 (the closing of the merger) through June 30, 2013, annualized. Pro forma results may not be indicative of actual results, nor is it intended to be a projection of future results. Management uses EBITDA, Adjusted EBITDA and Pro Forma Adjusted EBITDA as indicators of our ability to incur and service debt. In addition, we consider EBITDA, Adjusted EBITDA and Pro Forma 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, Adjusted EBITDA and Pro Forma 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

JUNE 30, 2013

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.

Pre-development

Represents development properties that are engaged in activities related to planning, entitlement or other preparations for future construction.

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) items associated with the expansion of a building or its improvements, (2) 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 (3) capital improvements that represent an addition to the property rather than the replacement of property, plant or equipment.

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