BioMed Stock Rises on Report of Possible Sale

SAN DIEGO—Shares of BioMed Realty Trust were up by 14% early Wednesday afternoon following a Bloomberg Business report late Tuesday that the company is exploring a sale and has drawn interest from firms including the Blackstone Group. A Blackstone spokesman declined comment; GlobeSt.com's requests for comment to BMR and to Morgan Stanley—which the biotechnology REIT reportedly has hired to assist in exploring a sale—were not returned by early Wednesday afternoon.

Bloomberg's report cited unnamed sources said to be familiar with the matter. Discussions are ongoing and there is no guarantee that a transaction will take place, the sources told Bloomberg.

News of a possible deal prompted Paul Morgan at Cannacord Genuity to upgrade his rating on BMR from “hold” to “buy,” Benzinga reported Wednesday. Earlier this week, the Ticker Report carried news of recent comments by other analysts; six had rated the stock with a “hold” rating and six have issued a “buy” rating prior to the Cannacord upgrade.

Over the past 52 weeks, shares of BMR have ranged high of $25.11 and a low of $17.94. The company's most recent quarterly earnings report in late July beat consensus estimates, and the Ticker Report says that the REIT is expected to post $1.73 earnings per share for the current fiscal year.

 Although the company has a strong presence in the biotech market of its native San Diego as well as the Bay Area, its biggest market by far is Boston, which accounts for nearly one-third of its base rent, according to a recent investor presentation. With a portfolio of 18.4 million square feet and a market capitalization of slightly under $4 billion, BMR also owns properties in New York, Maryland, North Carolina, Pennsylvania, Seattle and Cambridge, UK.