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

Attached files

file	filename
8-K - 8-K - BioMed Realty Trust Inc	d719369d8k.htm
EX-99.1 - EX-99.1 - BioMed Realty Trust Inc	d719369dex991.htm

Exhibit 99.2

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SUPPLEMENTAL OPERATING AND FINANCIAL DATA

MARCH 31, 2014


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, 2014


	Page			Page
First 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		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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FIRST QUARTER HIGHLIGHTS

MARCH 31, 2014

•

Executed 59 leasing transactions during the quarter representing approximately 480,400 square feet, including 96,100 square feet of positive net absorption and 126,200 square feet of pre-leasing, contributing to an operating portfolio leased percentage on a weighted-average basis of 91.5% and a development portfolio leased percentage of 81.7% at quarter end;

•

Increased same property net operating income on a cash basis by 6.8% year-over-year and set new company records for total and rental revenues of approximately $168.9 million and $120.0 million, respectively;

•

Generated core funds from operations (CFFO) of $0.41 per diluted share and adjusted funds from operations (AFFO) of $0.38 per diluted share, and reported net income available to common stockholders for the quarter of approximately $18.8 million, or $0.10 per diluted share; and

•

Continued to enhance the breadth and depth of the company’s organization with the promotion of David Hsiao to Vice President, Information Technology.

•

Subsequent to the end of the first quarter, the company:

•

Added approximately one million square feet to the company’s portfolio through its investment in the 300 George Street and 100 College Street properties adjacent to the Yale School of Medicine in New Haven, Connecticut, and as a result added Alexion Pharmaceuticals, Inc. (NYSE: ALXN) to the company’s top ten tenant roster;

•

Repaid in full the $333.4 million principal amount outstanding on its mortgage loan secured by the Center for Life Science | Boston, which bore interest at 7.75% per annum;

•

Received an upgrade on the company’s investment grade corporate credit rating from Standard & Poor’s Ratings Services to BBB, after receiving a positive outlook from Moody’s Investors Service in March 2014;

•

Completed a public offering of $400 million aggregate principal amount of 2.625% Senior Notes due 2019, priced at 99.408% of the principal amount to yield 2.752% to maturity; and

•

Appointed Janice L. Sears, former executive at Bank of America, to the company’s Board of Directors.

About BioMed Realty Trust

BioMed Realty, with its trusted expertise and valuable relationships, 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 17.3 million rentable square feet. Additional information is available at www.biomedrealty.com.

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INVESTOR INFORMATION

MARCH 31, 2014


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	Karen A. Sztraicher	James R. Berens
Chairman	Chairman and	Executive Vice President,	President
Daniel M. Bradbury	Chief Executive Officer	Asset Management	Wexford Science & Technology
William R. Brody, M.D., Ph.D.	R. Kent Griffin, Jr.	Jonathan P. Klassen	Sandy N. Weeks, Esq.
Barbara R. Cambon	President and	Senior Vice President,	Senior Vice President and
Edward A. Dennis, Ph.D.	Chief Operating Officer	General Counsel and Secretary	General Counsel
Richard I. Gilchrist	Gary A. Kreitzer	John P. Bonanno	Wexford Science & Technology
Gary A. Kreitzer	Executive Vice President, Director	Senior Vice President,	Daniel C. Cramer
Theodore D. Roth	Matthew G. McDevitt	Leasing & Development	Senior Vice President, Development
Janice. L. Sears	Executive Vice President, Real Estate		Wexford Science & Technology
M. Faye Wilson	Greg N. Lubushkin
	Chief Financial Officer

Tentative Schedule for Quarterly Results
Second Quarter 2014	July 30, 2014
Third Quarter 2014	October 29, 2014
Fourth Quarter 2014	February 4, 2015
First Quarter 2015	April 29, 2015

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EQUITY RESEARCH COVERAGE

MARCH 31, 2014


Cantor Fitzgerald	David Toti Evan Smith	(212) 915-1219 (212) 915-1220	dtoti@cantor.com evan.smith@cantor.com

Cowen and Company	James Sullivan Tom Catherwood	(646) 562-1380 (646) 562-1382	james.sullivan@cowen.com tom.catherwood@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

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

MARCH 31, 2014

(In thousands, except per share and ratio amounts)


	Three Months Ended
Selected Operating Data	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Rental revenues	$	120,026		$	118,048		$	116,884		$	108,092		$	102,956
Total revenues		168,876			157,993			159,232			159,639			160,450
EBITDA (1)		109,893			97,419			95,093			105,389			95,878
Adjusted EBITDA (1)		99,787			97,735			95,659			94,196			88,396
Net operating income - cash basis (2)		103,843			103,382			100,465			98,031			98,784
General and administrative expense		11,942			11,817			11,934			10,396			10,028
Acquisition-related expenses		1,250			19			907			2,120			2,236
Capitalized interest		4,192			4,207			3,984			3,176			2,840
Interest expense, net		28,010			27,837			27,870			26,119			25,902
Operating margin (3)		66.9	%		67.9	%		66.8	%		70.2	%		70.1	%
General and administrative expense / Total revenues		7.1	%		7.5	%		7.5	%		6.5	%		6.2	%
Change in same property net operating income - cash basis (4)		6.8	%		6.6	%		5.7	%		2.5	%		3.5	%
Net income available to common stockholders		18,833			10,279			4,247			14,803			8,388
Net income per share - diluted	$	0.10		$	0.05		$	0.02		$	0.08		$	0.05
FFO - diluted (5)		83,383			70,997			67,586			80,514			71,333
FFO per share - diluted (5)	$	0.40		$	0.34		$	0.33		$	0.40		$	0.41
CFFO - diluted (5)		84,633			71,016			68,493			82,634			73,569
CFFO per share - diluted (5)	$	0.41		$	0.34		$	0.33		$	0.41		$	0.42
AFFO - diluted (5)		79,511			65,395			60,719			73,951			81,424
AFFO per share - diluted (5)	$	0.38		$	0.31		$	0.29		$	0.37		$	0.47
Dividend per share - common stock	$	0.250		$	0.250		$	0.235		$	0.235		$	0.235
CFFO payout ratio (6)		61.0	%		73.5	%		71.2	%		57.3	%		56.0	%
AFFO payout ratio (6)		65.8	%		80.6	%		81.0	%		63.5	%		50.0	%

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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

MARCH 31, 2014

(In thousands, except per share and ratio amounts)


Capitalization		3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Total common shares outstanding			192,503			192,115			192,107			191,948			169,055
Total units outstanding (1)			5,405			5,416			5,416			5,416			2,919

Total common shares and units outstanding			197,908			197,531			197,523			197,364			171,974
Common share price at period end		$	20.49		$	18.12		$	18.59		$	20.23		$	21.60

Equity value at period end		$	4,055,134		$	3,579,261		$	3,671,947		$	3,992,675		$	3,714,640
Preferred stock at liquidation value			—			—			—			—			—
Consolidated debt			2,761,337			2,664,834			2,560,173			2,524,960			2,255,941

Total capitalization		$	6,816,471		$	6,244,095		$	6,232,120		$	6,517,635		$	5,970,581

Debt / Total assets			45.5	%		44.6	%		43.4	%		43.1	%		45.1	%
Debt / Total gross assets			40.0	%		39.4	%		38.6	%		38.5	%		40.0	%
Debt / Total capitalization			40.5	%		42.7	%		41.1	%		38.7	%		37.8	%
Coverage Ratios (2)
Net Debt / Adjusted EBITDA (3)			6.8			6.7			6.6			6.5			6.3
Interest coverage			3.9			3.9			3.8			4.0			3.8
Fixed charge coverage			3.6			3.5			3.5			3.7			3.2
Total Consolidated Debt
Secured debt / Total gross assets			10.2	%		10.5	%		10.8	%		11.6	%		10.1	%
Floating rate debt / Total debt			35.7	%		33.3	%		30.4	%		27.0	%		27.1	%
Adjusted floating rate debt / Total debt (4)			15.2	%		12.1	%		8.5	%		13.0	%		11.5	%
Unencumbered real estate / Total real estate			76.9	%		76.7	%		73.9	%		74.3	%		77.7	%
Unencumbered CABR / Total CABR (5)			77.3	%		76.9	%		75.8	%		76.5	%		79.1	%
Unsecured line of credit capacity		$	674,000		$	772,000		$	880,000		$	510,000		$	535,000

Bond Covenants (6)	Requirements
Total outstanding debt / Total assets	Must be £ 60%		40.8	%		40.4	%		39.6	%		39.6	%		41.2	%
Secured debt / Total assets	Must be £ 40%		10.4	%		10.7	%		11.1	%		11.9	%		10.4	%
Consolidated income available for debt service / Annual debt service charge	Must be ³ 1.5X		3.6			3.6			3.6			3.7			3.2
Unencumbered assets / Unsecured debt - Notes due 2020	Must be ³ 150%		249	%		253	%		265	%		278	%		257	%
Unencumbered assets / Unsecured debt - Notes due 2016, Notes due 2022	Must be ³ 150%		247	%		252	%		263	%		276	%		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).

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

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

(6)	For discussion on bond covenants, see page 36.

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PORTFOLIO SUMMARY

MARCH 31, 2014


	Gross Book Value		Buildings		Rentable Square Feet		Weighted- Average Leased % (1)
	(In thousands)
Operating portfolio	$	5,611,818		176		15,205,433		91.5	%
Development (2)		134,913		4		694,305		75.4	%
Redevelopment (2)		6,811		1		41,257		86.5	%
Unconsolidated partnership portfolio (3)		31,461		3		355,080		77.3	%
Pre-Development (2)		111,595		—		1,057,000		—
Development potential (2)		205,844		—		3,866,000		—

Total portfolio	$	6,102,442		184		21,219,075

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

(2)	See page 25 for detail and page 36 for definitions of terms.

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

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CONSOLIDATED BALANCE SHEETS

MARCH 31, 2014

(In thousands)


	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Assets
Investments in real estate, net	$	5,235,036		$	5,217,902		$	5,172,102		$	5,131,507		$	4,424,867
Investments in unconsolidated partnerships		31,461			32,137			31,978			32,250			32,118
Cash and cash equivalents		59,121			34,706			29,230			27,666			18,552
Accounts receivable, net		10,719			8,421			10,580			6,274			35,888
Accrued straight-line rents, net		178,114			173,779			169,272			163,287			155,591
Deferred leasing costs, net		189,527			198,067			202,393			213,567			167,648
Other assets		371,453			307,589			278,600			289,232			164,968

Total assets	$	6,075,431		$	5,972,601		$	5,894,155		$	5,863,783		$	4,999,632

Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	706,013		$	709,324		$	716,733		$	821,582		$	569,390
Exchangeable senior notes, net		180,000			180,000			180,000			180,000			180,000
Unsecured senior notes, net		895,312			895,083			894,850			894,622			894,397
Unsecured senior term loans		760,066			758,786			755,226			395,676			395,486
Unsecured line of credit		226,000			128,000			20,000			240,000			215,000
Accounts payable, accrued expenses, and other liabilities		333,157			314,383			311,287			281,780			199,731

Total liabilities		3,100,548			2,985,576			2,878,096			2,813,660			2,454,004
Equity:
Stockholders’ equity:
Common stock		1,925			1,921			1,921			1,919			1,691
Additional paid-in capital		3,554,504			3,554,558			3,552,595			3,549,082			3,065,589
Accumulated other comprehensive loss, net		(19,973	)		(32,923	)		(38,618	)		(43,094	)		(55,480	)
Dividends in excess of earnings		(612,864	)		(583,569	)		(545,819	)		(504,921	)		(474,619	)

Total stockholders’ equity		2,923,592			2,939,987			2,970,079			3,002,986			2,537,181
Noncontrolling interests		51,291			47,038			45,980			47,137			8,447

Total equity		2,974,883			2,987,025			3,016,059			3,050,123			2,545,628

Total liabilities and equity	$	6,075,431		$	5,972,601		$	5,894,155		$	5,863,783		$	4,999,632

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CONSOLIDATED STATEMENTS OF OPERATIONS

MARCH 31, 2014

(In thousands, except share and per share data)


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Revenues:
Rental	$	120,026		$	118,048		$	116,884		$	108,092		$	102,956
Tenant recoveries		38,735			37,597			38,907			32,494			32,637
Other revenue		10,115			2,348			3,441			19,053			24,857

Total revenues		168,876			157,993			159,232			159,639			160,450

Expenses:
Rental operations		52,523			49,891			51,688			41,941			40,553
Depreciation and amortization		62,409			58,781			61,898			63,557			60,764
General and administrative		11,942			11,817			11,934			10,396			10,028
Acquisition-related expenses		1,250			19			907			2,120			2,236

Total expenses		128,124			120,508			126,427			118,014			113,581

Income from operations		40,752			37,485			32,805			41,625			46,869
Equity in net loss of unconsolidated partnerships		(138	)		(208	)		(112	)		(267	)		(319	)
Interest expense, net		(28,010	)		(27,837	)		(27,870	)		(26,119	)		(25,902	)
Other income/(expense)		8,163			1,136			(687	)		(202	)		(3,190	)

Net income		20,767			10,576			4,136			15,037			17,458
Net (income)/loss attributable to noncontrolling interests		(1,934	)		(297	)		111			(234	)		(146	)

Net income attributable to the Company		18,833			10,279			4,247			14,803			17,312
Preferred stock dividends		—			—			—			—			(2,393	)
Cost on redemption of preferred stock		—			—			—			—			(6,531	)

Net income available to common stockholders	$	18,833		$	10,279		$	4,247		$	14,803		$	8,388

Income from continuing operations per share available to common stockholders:
Basic and diluted earnings per share	$	0.10		$	0.05		$	0.02		$	0.08		$	0.05

Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.10		$	0.05		$	0.02		$	0.08		$	0.05

Weighted-average common shares outstanding:
Basic		190,905,867			190,664,323			190,646,722			186,735,157			159,692,470

Diluted		196,545,536			196,117,552			196,131,643			190,151,166			162,713,677

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BALANCE SHEET / OPERATIONS STATEMENT DETAIL

MARCH 31, 2014

(In thousands)


	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Restricted cash	$	11,190		$	11,500		$	9,386		$	71,046		$	4,068
Acquired above-market leases, net		14,380			15,828			17,052			18,349			12,432
Acquired below-market ground lease, net		21,865			21,983			19,648			19,767			11,310
Deferred loan costs, net		17,291			18,771			20,407			15,442			16,240
Lease incentives, net		19,135			19,639			20,138			20,627			21,140
Construction loan receivable, net (1)		191,280			151,823			120,948			92,567			55,981
Other		96,312			68,045			71,021			51,434			43,797

Other assets	$	371,453		$	307,589		$	278,600		$	289,232		$	164,968

Security deposits	$	13,833		$	13,728		$	13,538		$	13,667		$	12,186
Dividends and distributions payable		49,477			49,383			46,418			46,381			40,413
Accounts payable, accrued expenses and other liabilities		231,073			210,986			207,967			178,125			133,420
Derivative instruments		2,154			2,165			2,620			1,439			5,435
Acquired below-market leases, net		36,620			38,121			40,744			42,168			8,277

Accounts payable, accrued expenses and other liabilities	$	333,157		$	314,383		$	311,287		$	281,780		$	199,731

	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Lease termination revenue	$	5,287		$	—		$	1,504		$	17,316		$	24,001
Construction loan revenue		2,557			2,190			1,824			1,319			807
Other revenue		2,271			158			113			418			49

Other revenue	$	10,115		$	2,348		$	3,441		$	19,053		$	24,857

Rental operations expenses	$	38,039		$	35,450		$	36,222		$	28,397		$	27,165
Real estate taxes		14,484			14,441			15,466			13,544			13,388

Rental operations	$	52,523		$	49,891		$	51,688		$	41,941		$	40,553

Non-cash adjustment for securities		—			—			—			—			(2,825	)
Gain on derivative instruments		161			296			121			—			—
Gain on sale of assets		—			—			230			—			—
Other investment loss		(1,319	)		(107	)		(1,135	)		—			—
Realized gain on securities		9,322			787			354			82			—
Realized gain/(loss) on foreign currency transactions		29			56			190			7			(160	)
Income tax (expense)/benefit		(30	)		104			(447	)		(291	)		(205	)

Other income/(expense)	$	8,163		$	1,136		$	(687	)	$	(202	)	$	(3,190	)

(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)

MARCH 31, 2014

(In thousands)


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Reconciliation of net income available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income available to common stockholders	$	18,833		$	10,279		$	4,247		$	14,803		$	8,388
Adjustments:
Gain on sale of assets		—			—			(230	)		—			—
Noncontrolling interests in operating partnership		521			285			118			263			154
Depreciation & amortization - unconsolidated partnerships		373			382			380			367			369
Depreciation & amortization - consolidated entities		62,409			58,781			61,898			63,557			60,764
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(441	)		(418	)		(515	)		(164	)		(30	)

Funds from operations (FFO) - basic	$	81,695		$	69,309		$	65,898		$	78,826		$	69,645
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688

FFO - diluted	$	83,383		$	70,997		$	67,586		$	80,514		$	71,333
Acquisition-related expenses		1,250			19			907			2,120			2,236

CFFO - diluted	$	84,633		$	71,016		$	68,493		$	82,634		$	73,569


Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements (3)		(7,731	)		(8,028	)		(9,857	)		(12,599	)		(9,795	)
Leasing commissions		(1,910	)		(1,780	)		(1,703	)		(1,985	)		(1,580	)
Gain on derivative instruments		(161	)		(296	)		(121	)		—			—
Non-cash adjustment for securities		—			—			—			—			2,825
Non-cash debt adjustments		3,094			3,106			3,426			3,059			3,099
Amortization of lease incentives		557			563			561			543			627
Depreciation included in general and administrative expense		740			647			629			565			481
Non-cash equity compensation		3,750			3,285			3,489			3,067			3,011
Cost on redemption of preferred stock		—			—			—			—			6,531
Straight line rents		(3,194	)		(2,983	)		(4,078	)		(4,269	)		(2,605	)
Share of unconsolidated partnership adjustments (4)		18			18			24			31			40
Fair-value lease revenue		(285	)		(153	)		(144	)		2,905			5,221

AFFO - diluted	$	79,511		$	65,395		$	60,719		$	73,951		$	81,424

(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)

MARCH 31, 2014

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


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
FFO - basic	$	81,695		$	69,309		$	65,898		$	78,826		$	69,645
FFO - diluted		83,383			70,997			67,586			80,514			71,333
CFFO - diluted		84,633			71,016			68,493			82,634			73,569
AFFO - diluted		79,511			65,395			60,719			73,951			81,424
FFO per share - basic	$	0.41		$	0.35		$	0.33		$	0.41		$	0.42
FFO per share - diluted (2)		0.40			0.34			0.33			0.40			0.41
CFFO per share - diluted (2)		0.41			0.34			0.33			0.41			0.42
AFFO per share - diluted (2)		0.38			0.31			0.29			0.37			0.47
Dividends and distributions declared per common share	$	0.250		$	0.250		$	0.235		$	0.235		$	0.235

CFFO payout ratio		61.0	%		73.5	%		71.2	%		57.3	%		56.0	%
AFFO payout ratio		65.8	%		80.6	%		81.0	%		63.5	%		50.0	%
Weighted-average common shares and units outstanding diluted (3)		198,056,397			197,563,868			197,546,778			191,457,377			164,111,880
Dilutive effect of exchangeable senior notes due 2030 (2)		10,525,410			10,405,224			10,405,224			10,259,496			10,259,496

Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		208,581,807			207,969,092			207,952,002			201,716,873			174,371,376

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(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 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 interest charges relating to calculations of FFO, CFFO and AFFO per diluted share.

(3)

The three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013 include 1,510,861, 1,446,316, 1,415,135, 1,306,211 and 1,398,203 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)

MARCH 31, 2014

(In thousands)


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA:
Net income available to common stockholders	$	18,833		$	10,279		$	4,247		$	14,803		$	8,388
Interest expense, net		28,010			27,837			27,870			26,119			25,902
Interest expense - unconsolidated partnerships		238			244			251			252			250
Income tax expense/(benefit)		30			(104	)		447			291			205
Depreciation & amortization - consolidated entities		62,409			58,781			61,898			63,557			60,764
Depreciation & amortization - unconsolidated partnerships		373			382			380			367			369

EBITDA		109,893			97,419			95,093			105,389			95,878
Noncontrolling interests		1,934			297			(111	)		234			146
Preferred dividends		—			—			—			—			2,393
Cost on redemption of preferred stock		—			—			—			—			6,531
Non-cash adjustment for securities		—			—			—			—			2,825
Gain on sale of assets		—			—			(230	)		—			—
Net realized gain on securities (2)		(8,003	)		—			—			—			—
Acquisition-related expenses		1,250			19			907			2,120			2,236
4570 Executive Drive lease termination revenue, net		(5,287	)		—			—			—			—
Elan Corporation lease termination revenue, net		—			—			—			(13,547	)		(21,613	)

Adjusted EBITDA	$	99,787		$	97,735		$	95,659		$	94,196		$	88,396

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

(2)	For the three months ended March 31, 2014 only.

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RECONCILIATION OF NET OPERATING INCOME (1)

MARCH 31, 2014

(In thousands, except ratio amounts)


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Net income	$	20,767		$	10,576		$	4,136		$	15,037		$	17,458
Equity in net loss of unconsolidated partnerships		138			208			112			267			319
Interest expense, net		28,010			27,837			27,870			26,119			25,902
Other (income)/expense		(8,163	)		(1,136	)		687			202			3,190

Income from operations		40,752			37,485			32,805			41,625			46,869
Depreciation and amortization		62,409			58,781			61,898			63,557			60,764
General and administrative		11,942			11,817			11,934			10,396			10,028
Acquisition-related expenses		1,250			19			907			2,120			2,236

Consolidated net operating income	$	116,353		$	108,102		$	107,544		$	117,698		$	119,897

Revenues:
Rental	$	120,026		$	118,048		$	116,884		$	108,092		$	102,956
Tenant recoveries		38,735			37,597			38,907			32,494			32,637
Other revenue (2)		10,115			2,348			3,441			19,053			24,857

Total revenues		168,876			157,993			159,232			159,639			160,450
Expenses:
Rental operations		52,523			49,891			51,688			41,941			40,553

Consolidated net operating income	$	116,353		$	108,102		$	107,544		$	117,698		$	119,897

Consolidated net operating income - cash basis (3)	$	103,843		$	103,382		$	100,465		$	98,031		$	98,784

Operating margin (4)		66.9	%		67.9	%		66.8	%		70.2	%		70.1	%
Operating expense recovery (5)		73.7	%		75.4	%		75.3	%		77.5	%		80.5	%

(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

MARCH 31, 2014

(In thousands)


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Mortgage notes payable	$	11,593		$	11,699		$	11,969		$	10,675		$	10,004
Exchangeable senior notes		1,688			1,688			1,688			1,688			1,688
Unsecured senior notes		10,334			10,334			10,334			10,334			10,334
Unsecured senior term loan		1,995			2,009			1,993			1,988			1,940
Unsecured line of credit		2,076			1,767			1,242			294			461
Line of credit fees		563			576			602			664			656
Derivative instruments		859			867			600			593			560

Interest expense, net - cash basis	$	29,108		$	28,940		$	28,428		$	26,236		$	25,643

Non-cash interest expense:
Amortization of fair-value of debt acquired		(535	)		(509	)		(511	)		(310	)		(189	)
Amortization of debt discounts		230			233			228			225			219
Amortization of deferred loan costs		1,509			1,504			1,825			1,374			1,351
Amortization of deferred interest costs		1,691			1,698			1,705			1,711			1,718
Amortization of put/call and preferred returns		199			178			179			59			—

Non-cash debt adjustments		3,094			3,104			3,426			3,059			3,099
Capitalized interest		(4,192	)		(4,207	)		(3,984	)		(3,176	)		(2,840	)

Interest expense, net	$	28,010		$	27,837		$	27,870		$	26,119		$	25,902

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COVERAGE RATIOS (1)

MARCH 31, 2014

(In thousands, except ratio amounts)


	Three Months Ended
	3/31/14			12/31/13			9/30/13			6/30/13			3/31/13
Interest coverage ratio
Adjusted EBITDA	$	99,787		$	97,735		$	95,659		$	94,196		$	88,396
Interest expense:
Interest expense, net		28,010			27,837			27,870			26,119			25,902
Interest expense - unconsolidated partnerships		238			244			251			252			250
Amortization of deferred interest costs		(1,691	)		(1,698	)		(1,705	)		(1,711	)		(1,718	)
Amortization of deferred loan costs		(1,509	)		(1,504	)		(1,825	)		(1,374	)		(1,351	)
Amortization of debt discounts		(230	)		(233	)		(228	)		(225	)		(219	)
Amortization of fair-value of debt acquired		535			509			511			310			189

Total interest expense	$	25,353		$	25,155		$	24,874		$	23,371		$	23,053

Interest coverage ratio		3.9			3.9			3.8			4.0			3.8

Fixed charge coverage ratio
Adjusted EBITDA	$	99,787		$	97,735		$	95,659		$	94,196		$	88,396
Fixed charges:
Interest expense, net		28,010			27,837			27,870			26,119			25,902
Interest expense - unconsolidated partnerships		238			244			251			252			250
Amortization of deferred interest costs		(1,691	)		(1,698	)		(1,705	)		(1,711	)		(1,718	)
Amortization of deferred loan costs		(1,509	)		(1,504	)		(1,825	)		(1,374	)		(1,351	)
Amortization of debt discounts		(230	)		(233	)		(228	)		(225	)		(219	)
Amortization of fair-value of debt acquired		535			509			511			310			189
Principal payments		2,729			2,705			2,616			2,232			2,072
Preferred dividends		—			—			—			—			2,393

Total fixed charges	$	28,082		$	27,860		$	27,490		$	25,603		$	27,518

Fixed charge coverage ratio		3.6			3.5			3.5			3.7			3.2

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

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DEBT SUMMARY

MARCH 31, 2014

(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	%	$	10,593	$	561		$	11,154		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		13,045		687			13,732		07/17
Center for Life Science \| Boston (1)		7.75	%		7.75	%		333,398		—			333,398		06/14
4320 Forest Park Avenue		4.00	%		2.70	%		21,000		185			21,185		06/15
Hershey Center for Applied Research		6.15	%		4.71	%		13,328		1,387			14,715		05/27
500 Kendall Street (Kendall D)		6.38	%		5.45	%		57,346		1,905			59,251		12/18
Shady Grove Road		5.97	%		5.97	%		142,564		—			142,564		09/16
University of Maryland BioPark I		5.93	%		4.69	%		16,587		1,428			18,015		05/25
University of Maryland BioPark II		5.20	%		4.33	%		62,691		3,808			66,499		09/21
University of Maryland BioPark Garage		5.20	%		4.33	%		4,719		287			5,006		09/21
University of Miami Life Science & Technology Park		4.00	%		2.89	%		20,000		495			20,495		02/16

Total / Weighted-Average on Mortgage Notes Payable		6.66	%		6.31	%		695,271		10,743			706,014
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		(1,088	)		398,912		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(1,732	)		248,268		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(1,868	)		248,132		07/22
Unsecured Variable Rate Debt:
Unsecured Senior Term Loan Due 2017 - U.S. Dollar (2)		1.80	%		2.63	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan Due 2017 - GBP (3)		2.13	%		2.39	%		166,470		—			166,470		03/17
Unsecured Senior Term Loan Due 2018 (4)		1.65	%		1.96	%		350,000		—			350,000		03/18
Unsecured Line of Credit (5)		1.45	%		1.45	%		226,000		—			226,000		03/18

Total / Weighted-Average on Consolidated Debt		4.03	%		4.12	%	$	2,761,337	$	6,055		$	2,767,392

Share of Unconsolidated Partnership Debt:
BioPark Fremont (50%) (fixed)		3.75	%		3.70	%		1,368		6			1,374		05/14
PREI Secured Construction Loan (20%) (variable)		3.16	%		3.16	%		27,795		—			27,795		08/14

Total / Weighted-Average on Share of Unconsolidated Partnership Debt		3.19	%		3.19	%		29,163		6			29,169

Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		4.02	%		4.11	%	$	2,790,500	$	6,061		$	2,796,561

(1)	Subsequent to quarter end, the Center for Life Science \| Boston note was voluntarily prepaid in full prior to the scheduled maturity.

(2)

The Company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2017 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 $243.6 million outstanding under the unsecured senior term loan facility due 2017 was 2.63% at March 31, 2014.

(3)

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 $1.66 to £1.00 at the end of the first 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.

(4)	The Company entered into interest rate swap agreements effective October 1, 2013 that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2018 at 2.20% for three years, subject to adjustments based on the Company’s credit ratings.

(5)	Effective rate excludes facility fee that was reduced subesequent to quarter end to 20 bps on the entire capacity of the unsecured line of credit, which equals approximately $450,000 per quarter.

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DEBT MATURITIES

MARCH 31, 2014

(In thousands)

Weighted-average debt maturity is 4.5 years for consolidated debt (excluding extension options).


	2014		2015		2016		2017		2018		Thereafter		Total
Consolidated debt:
Mortgage Notes Payable:
Mortgage notes payable (1)	$	338,639	$	30,006	$	166,516	$	30,294	$	45,663	$	84,153	$	695,271
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 due 2017 - U.S. Dollar		—		—		—		243,596		—		—		243,596
Unsecured senior term loan due 2017 - GBP		—		—		—		166,470		—		—		166,470
Unsecured senior term loan due 2018		—		—		—		—		350,000		—		350,000
Unsecured line of credit		—		—		—		—		226,000		—		226,000

Total unsecured debt		—		—		400,000		410,066		576,000		680,000		2,066,066
Total consolidated debt	$	338,639	$	30,006	$	566,516	$	440,360	$	621,663	$	764,153	$	2,761,337

Share of unconsolidated partnership debt:
BioPark Fremont (50%) (fixed)		1,368		—		—		—		—		—		1,368
PREI secured construction loan (20%) (variable)		27,795		—		—		—		—		—		27,795

Share of total unconsolidated partnership debt	$	29,163	$	—	$	—	$	—	$	—	$	—	$	29,163

Total consolidated and share of unconsolidated partnership debt	$	367,802	$	30,006	$	566,516	$	440,360	$	621,663	$	764,153	$	2,790,500

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(1)	Subsequent to quarter end, the Center for Life Science \| Boston note was 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

MARCH 31, 2014

(Shares in thousands)


	Three Months Ended
Summary of Common Shares	03/31/14			12/31/13			09/30/13			06/30/13			03/31/13
Earnings per share
Weighted-average common shares outstanding		190,906			190,664			190,647			186,735			159,692
Weighted-average OP and LTIP units outstanding		5,410			5,416			5,416			3,367			2,924
Dilutive effect of performance units		229			38			69			49			98

Diluted common shares - EPS		196,545			196,118			196,132			190,151			162,714

Funds from operations
Weighted-average common shares outstanding		190,906			190,664			190,647			186,735			159,692
Weighted-average OP and LTIP units outstanding		5,410			5,416			5,416			3,367			2,924
Dilutive effect of performance units		229			38			69			49			98
Dilutive effect of restricted stock		1,511			1,446			1,415			1,306			1,398
Dilutive effect of exchangeable senior notes due 2030		10,526			10,405			10,405			10,260			10,259

Diluted common shares - FFO		208,582			207,969			207,952			201,717			174,371

Closing common shares, OP and LTIP units outstanding		197,908			197,531			197,523			197,364			171,974
Preferred shares outstanding		—			—			—			—			—
High price	$	20.89		$	20.56		$	21.62		$	23.13		$	22.30
Low price	$	17.98		$	17.97		$	17.90		$	18.55		$	19.47
Average closing price	$	19.72		$	18.95		$	19.63		$	21.64		$	20.88
Closing price	$	20.49		$	18.12		$	18.59		$	20.23		$	21.60
Dividends per share - annualized	$	1.00		$	1.00		$	0.94		$	0.94		$	0.94
Closing dividend yield - annualized		4.9	%		5.5	%		5.1	%		4.6	%		4.4	%


Dividends per Share	03/31/14			12/31/13			09/30/13			06/30/13			03/31/13
Common Stock - BMR
Amount	$	0.250		$	0.250		$	0.235		$	0.235		$	0.235
Declared		March 17, 2014			December 12, 2013			September 16, 2013			June 14, 2013			March 15, 2013
Record		March 31, 2014			December 31, 2013			September 30, 2013			June 28, 2013			March 28, 2013
Paid		April 15, 2014			January 15, 2014			October 15, 2013			July 15, 2013			April 15, 2013
Preferred Stock - BMR PrA (1)
Amount		—			—			—			—		$	0.46094
Declared		—			—			—			—			March 15, 2013
Record		—			—			—			—			March 28, 2013
Paid		—			—			—			—			April 15, 2013

(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).

LOGO

MARKET SUMMARY

MARCH 31, 2014


				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		3,173,617		$	177,039			33.7	%	$	55.78		$	190,270		31.2	%	$	59.95
Maryland		1,876,096			71,513			13.6	%		38.12			87,926		14.4	%		46.87
San Diego		1,809,440			61,419			11.7	%		33.94			75,847		12.4	%		41.92
San Francisco		2,441,023			60,698			11.6	%		24.87			71,766		11.8	%		29.40
New York / New Jersey		1,518,705			53,630			10.2	%		35.31			66,645		10.9	%		43.88
Pennsylvania		1,035,270			26,332			5.0	%		25.43			31,464		5.2	%		30.39
Cambridge, UK		470,015			17,708			3.4	%		37.68			17,708		2.9	%		37.68
North Carolina		790,728			13,804			2.6	%		17.46			17,644		2.9	%		22.31
Seattle		253,757			11,658			2.2	%		45.94			14,527		2.4	%		57.25
University Related - Other		1,047,654			31,141			6.0	%		29.72			36,323		5.9	%		34.67

Total portfolio / weighted-average		14,416,305		$	524,942			100.0	%	$	36.41		$	610,120		100.0	%	$	42.32


	Percent Leased
Market	Total Operating Portfolio			Development (3)			Redevelopment (3)			Unconsolidated Partnership Portfolio (4)
Boston		98.9	%		—			86.5	%		71.5	%
Maryland		92.8	%		—			—			—
San Diego		90.5	%		—			—			100.0	%
San Francisco		82.2	%		—			—			—
New York / New Jersey		84.6	%		100.0	%		—			—
Pennsylvania		82.0	%		80.8	%		—			—
Cambridge, UK		99.5	%		—			—			—
North Carolina		92.1	%		—			—			—
Seattle		69.3	%		—			—			—
University Related - Other		83.6	%		—			—			—

Total portfolio (5)		89.0	%		81.7	%		86.5	%		77.3	%

Total portfolio weighted-average leased % (6)		91.5	%		75.4	%		86.5	%		77.3	%

(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.

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

MARCH 31, 2014


					Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Buildings		Feet		Sq Ft			Feet		3/31/14			12/31/13
	Boston
1	Albany Street	May 31, 2005		2		75,003		0.5	%		75,003		100.0	%		100.0	%
2	320 Bent Street	December 14, 2011		1		195,198		1.2	%		195,137		100.0	%		100.0	%
3	301 Binney Street	December 14, 2011		1		417,290		2.6	%		403,381		96.7	%		96.7	%
4	301 Binney Street Garage	December 14, 2011		1		503 Stalls		n/a			503 Stalls		99.8	%		99.8	%
5	210 Broadway	February 9, 2012		1		64,812		0.4	%		64,812		100.0	%		100.0	%
6	Center for Life Science \| Boston	November 17, 2006		1		704,159		4.4	%		696,331		98.9	%		98.9	%
7	Charles Street	April 7, 2006		1		47,912		0.3	%		47,912		100.0	%		100.0	%
8	320 Charles Street	June 18, 2013		1		99,513		0.6	%		99,513		100.0	%		100.0	%
9	Coolidge Avenue	April 5, 2005		1		37,684		0.2	%		34,580		91.8	%		91.8	%
10	21 Erie Street	May 31, 2005		1		48,627		0.3	%		48,627		100.0	%		100.0	%
11	40 Erie Street	May 31, 2005		1		100,854		0.6	%		100,854		100.0	%		100.0	%
12	47 Erie Street Parking Structure	May 31, 2005		1		447 Stalls		n/a			318 Stalls		71.1	%		100.0	%
13	Fresh Pond Research Park	April 5, 2005		6		90,702		0.6	%		89,176		98.3	%		98.3	%
14	50 Hampshire Street	February 9, 2012		1		183,052		1.1	%		183,052		100.0	%		100.0	%
15	60 Hampshire Street	February 9, 2012		1		41,257		0.3	%		35,703		86.5	%		86.5	%
16	Kendall Crossing Apartments	December 14, 2011		1		37 Apts.		n/a			34 Apts.		91.2	%		91.2	%
17	450 Kendall Street (Kendall G)	May 31, 2011		1		63,000		0.4	%		—		—			—
18	500 Kendall Street (Kendall D)	May 31, 2005		1		349,325		2.2	%		343,000		98.2	%		98.5	%
19	675 W. Kendall Street (Kendall A)	May 31, 2005		1		302,919		1.9	%		302,139		99.7	%		100.0	%
20	Sidney Street	May 31, 2005		1		191,904		1.2	%		191,904		100.0	%		100.0	%
21	Vassar Street	May 31, 2005		1		60,845		0.4	%		60,845		100.0	%		100.0	%

	Total Boston			27		3,074,056		19.2	%		2,971,969		96.7	%		96.7	%

	Maryland
22	Beckley Street	December 17, 2004		1		77,225		0.5	%		77,225		100.0	%		100.0	%
23	9900 Belward Campus Drive	July 18, 2012		1		49,317		0.3	%		32,199		65.3	%		65.3	%
24	9901 Belward Campus Drive	July 18, 2012		1		57,152		0.4	%		57,110		99.9	%		99.9	%
25	9911 Belward Campus Drive	May 24, 2006		1		289,912		1.8	%		289,912		100.0	%		100.0	%
26	9920 Belward Campus Drive	May 8, 2007		1		51,181		0.3	%		51,181		100.0	%		100.0	%
27	9704 Medical Center Drive	May 3, 2010		1		122,600		0.8	%		122,600		100.0	%		100.0	%
28	9708-9714 Medical Center Drive	May 3, 2010		3		92,124		0.6	%		16,067		17.4	%		17.4	%
29	1701 / 1711 Research Boulevard	May 9, 2011		1		104,743		0.7	%		104,743		100.0	%		100.0	%
30	Shady Grove Road	May 24, 2006		4		635,058		4.0	%		635,058		100.0	%		100.0	%
31	Tributary Street	December 17, 2004		1		91,592		0.6	%		91,592		100.0	%		100.0	%
32	University of Maryland BioPark I	May 31, 2013		1		75,517		0.5	%		75,517		100.0	%		100.0	%
33	University of Maryland BioPark II	May 31, 2013		1		235,333		1.5	%		220,487		93.7	%		93.5	%
34	University of Maryland BioPark Garage	May 31, 2013		1		638 Stalls		n/a			582 Stalls		100.0	%		96.0	%
35	50 West Watkins Mill Road	May 7, 2010		1		57,410		0.4	%		20,000		34.8	%		34.8	%
36	55 / 65 West Watkins Mill Road	February 23, 2010		2		82,405		0.5	%		82,405		100.0	%		100.0	%

	Total Maryland			21		2,021,569		12.9	%		1,876,096		92.8	%		92.8	%

	San Diego
37	Balboa Avenue	August 13, 2004		1		35,344		0.2	%		35,344		100.0	%		100.0	%
38	Bernardo Center Drive	August 13, 2004		1		61,286		0.4	%		61,286		100.0	%		100.0	%
39	Coast 9	October 15, 2010		8		162,074		1.0	%		124,092		76.6	%		82.3	%
40	4570 Executive Drive	September 17, 2010		1		125,219		0.8	%		125,219		100.0	%		85.3	%
41	Faraday Avenue	September 19, 2005		1		28,704		0.2	%		28,704		100.0	%		100.0	%
42	Gazelle Court	March 30, 2010		1		176,000		1.1	%		176,000		100.0	%		100.0	%
43	3525 John Hopkins Court	December 28, 2010		1		48,306		0.3	%		48,306		100.0	%		100.0	%
44	3545-3575 John Hopkins Court	August 16, 2006		1		72,192		0.5	%		62,673		86.8	%		84.7	%
45	6114-6154 Nancy Ridge Drive	May 2, 2007		3		196,557		1.2	%		196,557		100.0	%		100.0	%

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

MARCH 31, 2014


					Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Buildings		Feet		Sq Ft			Feet		3/31/14			12/31/13
	San Diego (Continued)
46	6122-6126 Nancy Ridge Drive	April 25, 2012		1		68,000		0.4	%		68,000		100.0	%		100.0	%
47	6828 Nancy Ridge Drive	April 21, 2005		1		42,138		0.3	%		17,707		42.0	%		42.0	%
48	Pacific Center Boulevard	August 24, 2007		2		66,745		0.4	%		66,745		100.0	%		100.0	%
49	Road to the Cure	December 14, 2006		1		67,998		0.4	%		67,998		100.0	%		89.6	%
50	San Diego Science Center	October 21, 2004		1		105,364		0.7	%		83,060		78.8	%		81.3	%
51	10240 Science Center Drive	September 23, 2010		1		49,347		0.3	%		49,347		100.0	%		100.0	%
52	10255 Science Center Drive	September 24, 2004		1		53,740		0.3	%		53,740		100.0	%		100.0	%
53	Sorrento Plaza	December 18, 2010		2		31,184		0.2	%		31,184		100.0	%		100.0	%
54	Sorrento Valley Boulevard	December 7, 2006		1		54,924		0.3	%		—		—			—
55	11388 Sorrento Valley Road	September 10, 2010		1		35,940		0.2	%		35,940		100.0	%		100.0	%
56	Summers Ridge	June 8, 2012		—		—		n/a			—		100.0	%		100.0	%
57	Torreyana Road	March 22, 2007		1		81,204		0.5	%		81,204		100.0	%		100.0	%
58	9865 Towne Centre Drive	August 12, 2004		2		94,866		0.6	%		94,866		100.0	%		100.0	%
59	9885 Towne Centre Drive	August 12, 2004		2		104,870		0.7	%		104,870		100.0	%		100.0	%
60	Waples Street	March 1, 2005		1		50,055		0.3	%		21,952		43.9	%		43.9	%
61	Wateridge Circle	November 1, 2011		3		106,490		0.7	%		101,783		95.6	%		95.6	%

	Total San Diego			39		1,918,547		12.0	%		1,736,577		90.5	%		89.7	%

	San Francisco
62	Ardentech Court	November 18, 2004		1		55,588		0.3	%		55,588		100.0	%		100.0	%
63	Ardenwood Venture (1)	June 14, 2006		1		72,500		0.5	%		60,339		83.2	%		83.2	%
64	Bayshore Boulevard	August 17, 2004		3		183,344		1.2	%		183,344		100.0	%		100.0	%
65	Bridgeview Technology Park I	September 10, 2004		2		201,567		1.3	%		106,694		52.9	%		52.9	%
66	Bridgeview Technology Park II	March 16, 2005		1		50,400		0.3	%		28,714		57.0	%		57.0	%
67	550 Broadway Street	April 27, 2012		1		71,239		0.4	%		71,239		100.0	%		100.0	%
68	Dumbarton Circle	May 27, 2005		1		44,000		0.3	%		44,000		100.0	%		100.0	%
69	Gateway Business Park	October 26, 2010		4		176,503		1.1	%		145,056		82.2	%		82.2	%
70	Industrial Road	August 17, 2004		1		175,144		1.1	%		175,144		100.0	%		100.0	%
71	Kaiser Drive	August 25, 2005		1		87,953		0.6	%		71,215		81.0	%		81.0	%
72	Pacific Industrial Center	July 11, 2006		1		305,026		1.9	%		252,119		82.7	%		82.7	%
73	Pacific Research Center North	July 11, 2006		6		661,245		4.1	%		523,491		79.2	%		79.2	%
74	Pacific Research Center South	July 11, 2006		3		423,246		2.7	%		263,543		62.3	%		62.3	%
75	Science Center at Oyster Point	October 26, 2010		2		204,887		1.3	%		204,887		100.0	%		100.0	%
76	Woodside Technology Park	February 28, 2013		3		255,650		1.6	%		255,650		100.0	%		100.0	%

	Total San Francisco			31		2,968,292		18.7	%		2,441,023		82.2	%		82.2	%

	New York / New Jersey
77	Ardsley Park	June 23, 2011		5		160,500		1.0	%		160,500		100.0	%		100.0	%
78	Graphics Drive	March 17, 2005		1		72,300		0.5	%		46,386		64.2	%		64.2	%
79	Landmark at Eastview	August 12, 2004		5		800,671		4.7	%		654,299		81.7	%		81.7	%
80	Landmark at Eastview II	August 12, 2004		3		360,520		2.3	%		360,520		100.0	%		100.0	%
81	Landmark at Eastview III	August 12, 2004		2		297,000		1.9	%		297,000		100.0	%		100.0	%
82	One Research Way	May 31, 2006		1		49,421		0.3	%		—		—			—

	Total New York / New Jersey			17		1,740,412		10.7	%		1,518,705		87.3	%		87.3	%

	Pennsylvania
83	George Patterson Boulevard	October 28, 2005		1		71,500		0.4	%		71,500		100.0	%		100.0	%
84	Hershey Center for Applied Research	May 31, 2013		1		80,867		0.5	%		70,830		87.6	%		87.7	%
85	King of Prussia	August 11, 2004		5		374,387		2.3	%		374,387		100.0	%		100.0	%
86	3711 Market Street (2)	May 31, 2013		1		154,793		1.0	%		146,296		94.5	%		94.5	%
87	3737 Market Street (3)	May 31, 2013		1		334,305		2.1	%		269,962		80.8	%		55.2	%
88	Phoenixville Pike	April 5, 2005		1		104,400		0.7	%		39,111		37.5	%		37.5	%

LOGO

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

MARCH 31, 2014


					Rentable Square		Percent of Rentable			Leased Square		Percent Leased
	Property	Acquisition Date	Buildings		Feet		Sq Ft			Feet		3/31/14			12/31/13
	Pennsylvania (Continued)
89	Spring Mill Drive	July 20, 2006		1		76,561		0.5	%		63,184		82.5	%		82.5	%
90	900 Uniqema Boulevard	January 13, 2006		1		11,293		0.1	%		—		—			—
91	1000 Uniqema Boulevard	September 30, 2005		1		59,821		0.4	%		—		—			—

	Total Pennsylvania			13		1,267,927		8.0	%		1,035,270		81.7	%		74.9	%

	Cambridge, UK
92	Granta Park	June 12, 2012		11		472,234		3.0	%		470,015		99.5	%		99.5	%

	Total Cambridge, UK			11		472,234		3.0	%		470,015		99.5	%		99.5	%

	North Carolina
93	Paramount Parkway	July 20, 2010		1		61,603		0.4	%		61,603		100.0	%		100.0	%
94	Patriot Drive	December 17, 2010		1		48,394		0.3	%		40,541		83.8	%		83.8	%
95	Piedmont Triad Research - Wake 90	May 31, 2013		1		475,742		3.0	%		415,995		87.4	%		83.4	%
96	Wake Forest Biotech Place	May 31, 2013		1		242,000		1.5	%		242,000		100.0	%		100.0	%
97	Weston Parkway	December 17, 2010		1		30,589		0.2	%		30,589		100.0	%		100.0	%

	Total North Carolina			5		858,328		5.4	%		790,728		92.1	%		89.9	%

	Seattle
98	Elliott Avenue	August 24, 2004		1		151,194		0.9	%		84,657		56.0	%		56.0	%
99	530 Fairview Avenue	January 12, 2006		1		96,305		0.6	%		96,305		100.0	%		100.0	%
100	Monte Villa Parkway	August 17, 2004		1		51,000		0.3	%		30,167		59.2	%		59.2	%
101	217th Place	November 21, 2006		1		67,799		0.4	%		42,628		62.9	%		79.7	%

	Total Seattle			4		366,298		2.2	%		253,757		69.3	%		72.4	%

	University Related - Other
102	BRDG Park at Danforth Plant Science Center	May 31, 2013		1		109,731		0.7	%		91,180		83.1	%		83.1	%
103	4320 Forest Park Avenue	May 31, 2013		1		152,403		1.0	%		152,403		100.0	%		100.0	%
104	Heritage @ 4240	May 31, 2013		1		185,206		1.2	%		119,609		64.6	%		60.6	%
105	Innovation Research Park at ODU I	May 31, 2013		1		95,634		0.6	%		87,747		91.8	%		90.0	%
106	Innovation Research Park at ODU II	May 31, 2013		1		95,670		0.6	%		71,759		75.0	%		74.9	%
107	Trade Centre Avenue	August 9, 2006		2		78,023		0.5	%		78,023		100.0	%		100.0	%
108	University of Miami Life Science & Technology Park	May 31, 2013		1		258,681		1.6	%		168,949		65.3	%		73.2	%
109	University Tech Park at IIT	May 31, 2013		1		128,000		0.8	%		128,000		100.0	%		100.0	%
110	Walnut Street	July 7, 2006		4		149,984		0.9	%		149,984		100.0	%		100.0	%

	Total University Related - Other			13		1,253,332		7.9	%		1,047,654		83.6	%		84.5	%

	Total			181		15,940,995		100.0	%		14,141,794		88.7	%		88.1	%

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

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

(3)	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

MARCH 31, 2014

(Dollars in thousands)


Property	Market	Rentable Square Feet		Percent Leased			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
Development:
450 Kendall Street (Kendall G)	Boston		63,000		—			13,900		44,100		Q3 2015
Landmark at Eastview III	New York / New Jersey		297,000		100.0	%		29,000		152,700		Q3 2015
3737 Market Street	Pennsylvania		334,305		80.8	%		60,000		100,000		Q4 2014

Total / weighted-average			694,305		81.7	%	$	102,900	$	296,800
Redevelopment:
60 Hampshire Street	Boston		41,257		86.5	%	$	5,200	$	16,000		Q4 2014

Total / weighted-average			41,257		86.5	%	$	5,200	$	16,000
Total							$	108,100	$	312,800


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		400,000		1,594,000		1,994,000
New York / New Jersey		—		667,000		667,000
Pennsylvania		—		103,000		103,000
Cambridge, UK		—		138,000		138,000
North Carolina		274,000		—		274,000
Seattle		108,000		40,000		148,000
University Related - Other		—		300,000		300,000

Total		1,057,000		3,866,000		4,923,000

(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, 2014.

(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. Upon completion, management expects the property to enter the Same Property Portfolio one year subsequent to the in-service date.

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CAPITAL EXPENDITURES

MARCH 31, 2014

(Dollars in thousands)


Capital Expenditures:	Three Months Ended
	3/31/14		12/31/13		9/30/13		6/30/13			3/31/13

Development / Pre-Development (1)	$	44,846	$	63,650	$	42,184	$	(7,695	)	$	3,241
Redevelopment		1,185		2,219		752		494			1,395
Tenant improvements - first generation (2)		9,175		8,257		5,572		6,446			13,933
Recurring capital expenditures and second generation tenant improvements (2) (3)		7,731		8,028		9,857		12,599			9,795
Other capital		6,906		5,254		8,532		12,144			10,886

Total capital expenditures	$	69,843	$	87,408	$	66,897	$	23,988		$	39,250


Capitalized Interest:	Investment		Three Months Ended
	to Date (4)		3/31/14			12/31/13			9/30/13			6/30/13			3/31/13

Development	$	102,900	$	981		$	695		$	1,367		$	522		$	—
Redevelopment		5,200		64			330			294			297			611
Other Capital Improvements (5)		217,600		2,048			2,165			947			948			755
Pre-Development		99,300		1,099			1,017			1,376			1,409			1,474

Total capitalized interest	$	425,000	$	4,192		$	4,207		$	3,984		$	3,176		$	2,840

Average interest rate capitalized				4.64	%		4.75	%		4.88	%		5.24	%		5.20	%

(1)	Projects include funds from tax credit dollars received during the quarter. Negative amounts reflect an excess in tax credit benefits received over expenditures incurred during the quarter.

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

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

(4)	Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but for Development and Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through March 31, 2014.

(5)	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 March 31, 2014.

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PROPERTY LISTING - UNCONSOLIDATED PARTNERSHIPS

MARCH 31, 2014

(Dollars in thousands)


				Rentable		Leased
				Square		Square		Percent Leased
Property	Acquisition Date	Buildings		Feet		Feet		3/31/14			12/31/13			Market
McKellar Court
McKellar Court	September 30, 2004		1		72,863		72,863		100.0	%		100.0	%	San Diego
PREI
650 E. Kendall Street (Kendall B)	April 4, 2007		1		282,217		201,648		71.5	%		71.5	%	Boston
350 E. Kendall Street Garage (Kendall F)	April 4, 2007		1		1,409 Stalls		1,409 Stalls		100.0	%		100.0	%	Boston


Total assets	$	280,501
Total debt (1)		151,992
Current annualized base rent		13,113
BioMed’s net investment in unconsolidated partnerships	$	31,461
BioMed’s pro rata share of debt		29,163
BioMed ownership percentage		20	%

(1)	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

MARCH 31, 2014

The weighted-average remaining lease terms are 7.7 years for the consolidated portfolio and 7.8 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		25,169		0.2	%	$	452		0.1	%	$	17.96	$	452		0.1	%	$	17.96
Second quarter 2014		466,893		3.2	%		11,151		2.1	%		23.88		11,151		1.8	%		23.88
Third quarter 2014		108,366		0.8	%		7,462		1.4	%	$	68.86		7,462		1.2	%	$	68.86
Fourth quarter 2014		166,307		1.2	%		7,559		1.4	%		45.45		7,511		1.2	%		45.16

2014		741,566		5.2	%		26,172		4.9	%		35.29		26,124		4.2	%		35.23
2015		577,132		4.0	%		16,678		3.2	%		28.90		17,090		2.8	%		29.61
2016		1,154,078		8.0	%		45,805		8.7	%		39.69		47,475		7.8	%		41.14
2017		685,037		4.8	%		20,579		3.9	%		30.04		22,408		3.7	%		32.71
2018		1,801,716		12.5	%		80,937		15.4	%		44.92		83,836		13.7	%		46.53
2019		986,963		6.8	%		28,540		5.4	%		28.92		31,684		5.2	%		32.10
2020		910,111		6.3	%		31,786		6.1	%		34.93		36,296		5.9	%		39.88
2021		638,284		4.4	%		19,549		3.7	%		30.63		22,303		3.7	%		34.94
2022		711,390		4.9	%		14,732		2.8	%		20.71		18,993		3.1	%		26.70
2023		1,117,505		7.8	%		55,602		10.6	%		49.76		61,506		10.1	%		55.04
Thereafter		5,067,354		35.1	%		184,110		35.2	%		36.33		241,953		39.7	%		47.75

Total / weighted-average		14,416,305		100.0	%	$	524,942		100.0	%	$	36.41	$	610,120		100.0	%	$	42.32

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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

MARCH 31, 2014


	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		—		400		9,465		—		630		1,399		—		—		—		13,275		25,169
2014		79,683		58,141		43,862		136,769		9,243		391,870		—		—		—		21,998		741,566
2015		53,551		26,026		228,446		116,005		2,833		39,379		24,441		16,492		—		69,959		577,132
2016		416,184		18,815		37,454		273,632		40,613		1,631		1,103		92,192		36,885		235,569		1,154,078
2017		113,908		107,288		131,785		138,627		145,581		25,103		—		—		11,390		11,355		685,037
2018		1,144,843		72,004		312,205		171,584		24,944		14,389		—		15,117		42,628		4,002		1,801,716
2019		30,583		267,033		86,184		161,104		—		93,369		117,919		8,932		49,664		172,175		986,963
2020		359,387		130,846		113,251		71,215		28,899		33,029		136,434		19,261		—		17,789		910,111
2021		67,968		45,434		8,365		230,311		40,914		71,500		160,290		10,060		—		3,442		638,284
2022		42,385		4,399		17,707		582,968		27,524		6,146		—		—		—		30,261		711,390
2023		563,964		—		219,636		263,543		—		—		26,294		—		—		44,068		1,117,505
Thereafter		301,161		1,145,710		601,080		295,265		1,197,524		357,455		3,534		628,674		113,190		423,761		5,067,354

Total		3,173,617		1,876,096		1,809,440		2,441,023		1,518,705		1,035,270		470,015		790,728		253,757		1,047,654		14,416,305

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10 LARGEST TENANTS

MARCH 31, 2014

BioMed’s properties were leased to 322 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		6.4	%	$	45,373	$	49.05		8.6	%		June 2026
2	Regeneron Pharmaceuticals, Inc. (3)		1,001,718		6.9	%		40,079		40.01		7.6	%		Multiple
3	Vertex Pharmaceuticals Incorporated (4)		685,286		4.8	%		36,986		53.97		7.0	%		Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		2.5	%		26,823		74.02		5.1	%		July 2023
5	Sanofi (5)		418,003		2.9	%		22,858		54.68		4.4	%		Multiple
6	Ironwood Pharmaceuticals, Inc.		303,259		2.1	%		15,350		50.62		2.9	%		February 2018
7	Children’s Hospital Corporation (6)		200,081		1.4	%		14,459		72.27		2.8	%		May 2023
8	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		2.6	%		9,267		24.75		1.8	%		April 2014
9	Bristol-Myers Squibb (7)		270,047		1.9	%		9,108		33.73		1.7	%		Multiple
10	MedImmune, Inc. (8)		245,808		1.7	%		8,727		35.50		1.7	%		Multiple

	Total / weighted-average (9)		4,785,923		33.2	%	$	229,030	$	47.85		43.6	%

(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)

On April 3, 2013, 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 686,360 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)	133,123 square feet expire December 2022 and 30,167 square feet expire April 2024. Subsequent to quarter end, the tenant terminated 106,757 square feet.

(8)	46,013 square feet expire December 2015, 39,505 square feet expire January 2021 and 160,290 square feet expire December 2021.

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

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SAME PROPERTY ANALYSIS

MARCH 31, 2014

(Dollars in thousands)


	Three Months Ended
	3/31/14			3/31/13			Percent Change
Total Same Property Portfolio (1)
Rentable square feet		12,811,030			12,811,030
Percent of total portfolio		78.6	%		96.7	%
Percent leased		88.7	%		87.4	%
Revenues:
Rental	$	105,350		$	102,834			2.4	%
Tenant recoveries		37,121			34,304			8.2	%

Total revenues		142,471			137,138			3.9	%
Expenses:
Rental operations		44,545			42,074			5.9	%

Same property net operating income (2)	$	97,926		$	95,064			3.0	%

Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(310	)		(3,652	)		(91.5	%)

Same property net operating income - cash basis (2) (3)	$	97,616		$	91,412			6.8	%

Rental revenue - cash basis (3)	$	104,042		$	97,821			6.4	%

(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.

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ACQUISITIONS

MARCH 31, 2014


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

Property
					(In thousands)
First Quarter 2014
None

Second Quarter 2014
100 College & 300 George (1)	University Related - Other	April 4, 2014		1,027,158	$	195,610		98.9	%

Second quarter total				1,027,158	$	195,610		98.9	%

Total 2014 Acquisitions & Mergers				1,027,158	$	195,610		98.9	%

(1)	Investment excludes a minority interest of approximately $10.0 million and $102.3 million in estimated completion costs, resulting in a total project investment of $307.9 million.

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LEASING ACTIVITY (1)

MARCH 31, 2014


	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 December 31, 2013		14,320,202					102,547
Expirations		(207,946	)	$	32.02
Terminations		(58,742	)		26.14
Pre-leased delivery		8,554			34.47		(8,554	)	$	35.21
Renewals, amendments, and extensions		173,117			38.72
New leases - 1st generation (2)		133,811			22.16
New leases - 2nd generation (2)		47,309			27.95		126,212			32.03

Leased Square Feet as of March 31, 2014		14,416,305					220,205


	Three Months Ended
Leased Square Feet	3/31/14		12/31/13		9/30/13		6/30/13			3/31/13
Renewals, amendments, and extensions		173,117		89,297		110,563		475,250			164,004
New leases		307,332		352,541		229,535		422,770			419,731

Gross Leasing Activity		480,449		441,838		340,098		898,020			583,735

Net Absorption (3) (4)		96,103		186,657		111,265		(45,377	)		(180,165	)

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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.

(4)	Net absorption is calculated as total square footage of new leases and pre-leased delivery, less expirations and terminated square feet for the given period.

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TENANT IMPROVEMENTS, LEASING COMMISSIONS AND TENANT CONCESSIONS

MARCH 31, 2014


	Three Months Ended
	3/31/14		12/31/13		9/30/13		6/30/13		3/31/13
Renewals, Amendments, and Extensions (1)
Number of renewals		10		7		13		12		13
Square feet		173,117		89,297		110,563		475,250		164,004
Tenant improvement costs per square foot (2)	$	19.11	$	5.27	$	—	$	1.42	$	15.21
Leasing commission costs per square foot (2)		3.80		3.99		0.65		4.28		0.58
Tenant concession costs per square foot (2) (3)		—		0.97		1.21		0.03		2.88

Total tenant improvement, leasing commission, and tenant concession costs psf	$	22.91	$	10.23	$	1.86	$	5.73	$	18.67

New Leases - 1st Generation (4)
Number of leases		13		11		16		6		7
Square feet		133,811		63,231		199,909		383,717		65,779
Tenant improvement costs per square foot (2)	$	60.47	$	34.00	$	105.63	$	88.59	$	39.46
Leasing commission costs per square foot (2)		12.45		6.97		9.81		10.69		7.99
Tenant concession costs per square foot (2) (3)		5.24		0.77		19.96		19.11		4.99

Total tenant improvement, leasing commission, and tenant concession costs psf	$	78.16	$	41.74	$	135.40	$	118.39	$	52.44

New Leases - 2nd Generation (4)
Number of leases		36		16		8		2		9
Square feet		173,521		289,310		29,626		39,053		353,952
Tenant improvement costs per square foot (2)	$	103.64	$	34.60	$	0.71	$	27.05	$	26.03
Leasing commission costs per square foot (2)		5.88		9.33		0.72		8.12		15.90
Tenant concession costs per square foot (2) (3)		12.63		4.20		1.62		—		3.51

Total tenant improvement, leasing commission, and tenant concession costs psf	$	122.15	$	48.13	$	3.05	$	35.17	$	45.44

Total
Number of renewals/leases		59		34		37		20		29
Square feet		480,449		441,838		340,098		898,020		583,735
Tenant improvement costs per square foot (2)	$	61.16	$	28.59	$	62.15	$	39.78	$	24.50
Leasing commission costs per square foot (2)		6.96		7.92		6.04		7.19		10.70
Tenant concession costs per square foot (2) (3)		6.02		3.06		12.26		8.18		3.50

Total tenant improvement, leasing commission, and tenant concession costs psf	$	74.14	$	39.57	$	80.45	$	55.15	$	38.70

(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

MARCH 31, 2014

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), 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) dividends payable on and cost on redemption of our series A preferred stock, (c) non-cash adjustments for securities, (d) gains or losses from sales of real estate and (e) acquisition-related expenses, and by subtracting from EBITDA (x) lease termination fees related to 4570 Executive Drive in the current period, (y) net realized gains on investments in securities in the current period, and (z) termination fees from Elan Corporation at our Oyster Point property in 2013. 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.

LOGO

DEFINITIONS

MARCH 31, 2014

Property Status

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.

Bond Covenants

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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