• News
  • Real Estate

BioMed has record quarter while buying frenzy continues

Rancho Bernardo-based BioMed Realty Trust Inc. is posting record numbers and continues to gobble up millions of square feet across the country.

The life science REIT has set revenue records, executed 63 leasing transactions comprising more than 800,000 square feet, and added roughly 1 million square feet to its portfolio in two transactions in the second quarter alone.

The local leases included two with Affymetrix Inc. for about 82,800 square feet at two adjacent properties, 53,800 square feet at 10255 Science Center Drive and 29,000 square feet at 10240 Science Center Drive in the Torrey Pines submarket.

A lease with Intertek USA Inc. was for about 46,100 square feet at the company's Wateridge Circle property in Sorrento Mesa.

For the second quarter ended June 30, BioMed (NYSE: BMR) posted $19.09 million in net income on $171.16 million in revenues, compared to $15.03 million in net income on $159.64 million in revenues for the same period in 2013. BioMed's stock price ended Tuesday at $21.29 — down 29 cents, or 1.34 percent. The stock has ranged from $17.90 to $22.47 during the past 52 weeks.

For the six months ended June 30, BioMed recorded $39.86 million in net income on $340.03 million in revenues, compared to $32.49 million in net income on $320.9 million in revenues for the like period a year earlier. Both the quarterly and six-month revenue figures were records for the company.

The REIT added about 1 million square feet to the company's portfolio through its fully leased investment in the 300 George Street and 100 College Street properties next to the Yale School of Medicine in New Haven, Conn.

BioMed has also begun building a 121,600-square foot-laboratory and office building on Fairview Avenue in Seattle. This is part of an eventual 223,000 square feet of state-of-the-art life science real estate campus to be renamed the BioMed Realty Research Center.

The firm also received an early payoff of the company's investment in the construction loan for the Fan Pier development project in Boston totaling $199.3 million, reflecting the repayment of $191.2 million in principal and accrued interest receivable, and prepayment fees of about $8.1 million.

In addition, BioMed repaid in full the $333.4 million principal amount outstanding on its mortgage loan secured by the Center for Life Science | Boston.

The company received an upgrade of its investment grade corporate credit rating from Standard & Poor's Ratings Services to BBB from Moody's Investors Service in March 2014, and successfully completed a $400 million public offering during the second quarter.

"Our outstanding operating and financial results in the second quarter and first half of 2014 provide further evidence of the strength of our proven strategy and business model built on a foundation of operating expertise and our lasting, long-term relationships across the broad spectrum of life science organizations," Alan D. Gold, BioMed chairman and CEO said in a statement.

"Our exceptionally strong operating results of the second quarter benefited from broad-based leasing success and three strategically important portfolio additions that expand our footprint and create new connection points at cornerstones of scientific innovation —Yale University, University of Pennsylvania, Drexel University and the University of Cambridge," said Kent Griffin, BioMed Realty president.

"We enter our second decade as a public company with very strong momentum on all fronts, thanks to the vitality of the life science industry, our team's steady execution of our business model, and the sustained support of our tenant relationships and business partners."

BioMed owns more than 17 million square feet of life science space from San Diego to Britain.

User Response
0 UserComments