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Good times for BioMed, Alexandria life science assets

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Both BioMed Realty Trust and Alexandria Real Estate Equities posted strong performances during 2013's first quarter.

"We continue to enjoy tremendous success on the leasing and operating fronts in the first quarter of 2013, as well as subsequent to quarter-end, putting us on track to exceed our leasing plan again in 2013," said Alan D. Gold, BioMed Realty's chairman and CEO, in a statement.

For the quarter ended March 31, BioMed Realty (NYSE: BMR) posted $17.46 million in net income on $160.45 million in revenues compared to $2.28 million in net income on $120.01 million in revenues for the like period in 2012.

BioMed Realty, a life science property real estate investment trust, executed 29 leasing transactions during the quarter representing approximately 583,700 square feet.

This included 16 new leases totaling approximately 419,700 square feet.

About half of the new leasing activity was attributable to a 204,000-square-foot pre-lease with Carlsbad-based Life Technologies Corp. (Nasdaq: LIFE) for approximately 204,900 square feet at the company's Science Center at Oyster Point property in South San Francisco.

On the East Coast, BioMed Realty inked a 104,700-square-foot pre-lease with Momenta Pharmaceuticals (Nasdaq: MNTA) in Cambridge, Mass.

BioMed paid $87 million to acquire the 100 percent leased, 256,000-square-foot Woodside Technology Park in Redwood City, Calif., as well as the 280,000-square-foot Campus at Lincoln Centre property in Foster City, Calif. for $37 million during the quarter.

The campus is a seven-building business park to be redeveloped into a new life science complex.

During the quarter BioMed Realty also entered into an agreement to acquire Wexford Science & Technology LLC, a private real estate investment and development company that owns and develops institutional quality life science real estate for academic and medical research organizations.

Wexford owns approximately 1.6 million square feet of laboratory and office space in U.S. educational and research centers, in addition to three properties under construction expected to comprise approximately 935,000 square feet of rentable space upon completion, as well as other pipeline projects.

BioMed also entered into a build-to-suit transaction to construct two new buildings pre-leased to Regeneron Pharmaceuticals for a 15-year term totaling approximately 297,000 square feet at The Landmark at Eastview in Tarrytown, N.Y., and extended Regeneron's lease for approximately 360,500 square feet at The Landmark into 2029.

"We continue to invest in our business to provide future growth," Gold said. "In the first quarter and looking forward, we continue to identify and execute on attractive new investment opportunities that we believe can provide very compelling risk-adjusted returns.”

In April 2013, BioMed Realty completed a follow-on public offering of 17.25 million shares that raised net proceeds of approximately $354.1 million.

The company expects to use the net proceeds of the offering to fund a portion of the Wexford purchase price.

BioMed Realty owns or has interests in properties comprising approximately 13.5 million rentable square feet.

The company's properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, Maryland, San Diego, New York/New Jersey, Pennsylvania and Seattle, which have well-established reputations as centers for scientific research.

BioMed Realty owns more than 1 million square feet of life science property in San Diego County, but most of its property is away from the home office.

The REIT’s stock price ended Thursday at $22.54, up 20 cents or 0.9 percent on the day. BioMed’s stock price has ranged from $17.52 to $22.70 per share during the past 52 weeks.

For the quarter ended March 31, Pasadena-based Alexandria recorded $30.23 million in net income on $150.38 million in revenues, compared to $32.77 million on $135.71 million in revenues for the comparable period a year earlier.

Alexandria owns about 2.6 million square feet of life science property in San Diego County, according to its website.

This includes assets such as the 450,000-square-foot Campus Point property, and the 360,000-square-foot Nobel Research Center, both in the University Towne Centre area.

The life science REIT executed 44 leases for 703,000 rentable square feet, including 457,000 rentable square feet of development and redevelopment space during the quarter.

As was the case with BioMed Realty, much of Alexandria’s activity in the first quarter was largely confined to the San Francisco and greater Boston areas.

Both, however, derive millions of dollars each quarter from their San Diego assets.

Alexandria reported an average occupancy of 94.2 percent during the quarter.

During the three months ended March 31, Alexandria executed leases aggregating 355,000 and 102,000 rentable square feet related to its development and redevelopment projects, respectively.

Alexandria currently has 17.1 million square feet of life science space in its portfolio.

The Pasadena REIT’s stock ended the day at $73.15 Thursday. The stock has ranged from $64.09 to $77.10 during the past 52 weeks.

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