SAN DIEGO, Calif—BioMed Realty Trust, Inc. (NYSE: BMR), a real estate investment trust (REIT) that delivers optimal real estate solutions for the life science industry, today announced financial results for the fourth quarter and full-year ended December 31, 2012.
Fourth Quarter 2012 Highlights
- · Executed 30 leasing transactions during the quarter representing approximately 624,900 square feet, driving the total operating portfolio leased percentage on a weighted-average basis to approximately 92.1% at quarter end, comprised of:
o 13 new leases totaling approximately 256,600 square feet, highlighted by:
§ a lease expansion with Ironwood Pharmaceuticals, Inc. for 93,000 square feet at the company’s 301 Binney Street property in Cambridge, Massachusetts; and
§ a lease expansion with Regeneron Pharmaceuticals, Inc. for an additional approximately 80,500 square feet at The Landmark at Eastview campus in Tarrytown, New York.
o 17 lease renewals totaling approximately 368,300 square feet, highlighted by:
§ a lease extension with Ironwood Pharmaceuticals, Inc. for the balance of the approximately 210,300 square feet currently leased at the 301 Binney Street property through January 31, 2018; and
§ a lease extension with NuGen Technologies, Inc. for approximately 47,900 square feet at the company’s Industrial Road property in San Carlos, California.
- Increased funds from operations (FFO) for the quarter by 20.0% to $0.36 per diluted share, as compared to $0.30 per diluted share in the fourth quarter of 2011.
- Increased adjusted funds from operations (AFFO) for the quarter by 17.9% to $0.33 per diluted share, as compared to $0.28 per diluted share in the fourth quarter of 2011.
- Increased same property net operating income on a cash basis for the period by 6.1% and the same property leased percentage increased by 5.7% as compared to the same period in 2011.
- Generated total revenues for the quarter of $138.8 million, up 23.9% from $112.0 million in the same period in 2011 and the highest in the company’s history. Rental revenues for the quarter increased by 22.5% to $104.0 million from $84.9 million in the same period in 2011, the highest in the company’s history.
- Reported net income available to common stockholders for the quarter of $4.5 million, or $0.03 per diluted share.
Alan D. Gold, Chairman and Chief Executive Officer of BioMed Realty, commented, “We are very pleased to report another quarter and year of strong execution of our proven business model. In 2012, we continued to reap the benefits of strong life science industry trends. Leveraging this strength with the location and quality of our properties combined with the skill of our operating team has allowed us to make significant market share gains. In fact, we’ve increased our leased percentage by 1,000 basis points over the last nine quarters – bringing our total operating portfolio to over 92% leased. The cumulative effect of this sustained success helped us deliver a 20% increase in FFO per share in the fourth quarter of 2012.”
During the full year 2012, the company:
- Executed 97 leasing transactions representing approximately 1.8 million square feet, driving year-over-year net absorption in same property portfolio of 570 basis points and increasing the total operating portfolio weighted-average leased percentage by 4.9% to 92.1% at year-end:
o 61 new leases totaling approximately 1.1 million square feet.
o 36 leases amended to extend their terms totaling approximately 703,200 square feet.
o Including leasing activity in the fourth quarter of 2011, the company executed approximately 2.1 million square feet of gross leasing transactions, representing approximately 172% of its previously disclosed five-quarter goal of 1.2 million square feet.
- Increased total revenues 18.3% to $518.2 million from $438.2 million in 2011 and rental revenues 19.2% to $392.6 million from $329.5 million in 2011.
- Increased FFO excluding acquisition-related expenses, or core funds from operations (CFFO), for the year by 9.2% to $1.31 per diluted share, compared to $1.20 per diluted share in 2011. FFO, calculated in accordance with standards established by NAREIT, was $1.23 per diluted share.
- Increased AFFO to $1.29 per diluted share for the year, as compared to $1.15 per diluted share in 2011, an increase of 12.2% per diluted share.
- Reported a net loss available to common stockholders of $2.8 million, or $0.03 per diluted share. The loss includes acquisition-related expenses totaling $13.1 million.
- Acquired six new properties for a total investment of approximately $436.4 million, increasing the company’s gross assets year-over-year by 11.4% to $5.4 billion at year-end. The properties were 93.3% leased at acquisition and comprise approximately 1.0 million rentable square feet.
According to Kent Griffin, President and Chief Operating Officer of BioMed Realty, “Our 2012 results were truly extraordinary and a testimony to our commitment to creating value from the ground up. In addition to the 1.8 million square feet of gross leasing, we identified and delivered $436 million of attractive new investments by leveraging our strong platform, industry expertise and valuable relationships. Individually and collectively, our 2012 investments allow us to capitalize on our core competencies – our expertise in life science real estate combined with a sound, sustained capital strategy – for the benefit of our stockholders. We are very excited about 2013 and the opportunities in front of us, as the result of the success and momentum delivered throughout all facets of our business in 2012.”