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Alexandria has profitable quarter; BioMed invests in future

Pasadena-based Alexandria Real Estate Equities continued to post strong earnings in the first half of the year, while Rancho Bernardo-based BioMed Realty Trust’s numbers were affected by a major June investment.

BioMed Realty (NYSE: BMR) experienced a moderate loss in the second quarter and the year's first half.

However, the company also invested in its future when it spent $47 million for the 28-acre Summers Ridge property in Sorrento Mesa, near the Scripps Proton Therapy Center in June.

The REIT has signed a ground lease with Shire Regenerative Medicine for the entire site. The planned campus size wasn’t available.

“Our San Diego land investment, with a concurrent ground lease to a credit tenant, is yet another example of our creativity and tenacity – affording us another strong success, with a very attractive risk-adjusted return profile,” said Kent Griffin, BioMed president and chief operating officer, in a statement.

For the quarter ended June 30, BioMed recorded a loss of $5.23 million on $124.84 million in revenues -- compared with net income of $7.94 million on $106.4 million for the like period a year earlier.

For the six months ended June 30, BioMed posted a loss of $2.95 million on $244.85 million in revenues -- compared with $17.82 million in net income on $211.6 million for the comparable period in 2011.

Alexandria (NYSE: ARE) posted $25.64 million in net income on $154.1 million in revenues for the quarter ended June 30 -- compared with $34.31 million in net income on $143.32 million in revenues for the same period a year earlier.

For the six months ended June 30, Alexandria recorded $58.41 million in net income on $298.84 million in revenues -- compared with $66.93 million in net income on $283.01 million in revenues for the comparable period a year earlier.

Alexandria, which owns more than 2.6 million square feet in San Diego County and in excess of 15 million square feet overall, has a North American operating portfolio that is roughly 94 percent leased.

In June, Alexandria completed the redevelopment of a property on John Hopkins Court, a combined 98,320 rentable square feet multi-tenant campus located in the Torrey Pines submarket.

The John Hopkins property is 100 percent leased to the Genomics Institute of the Novartis Research Foundation and the Verenium biotechnology firm.

Alexandria also owns larger properties than its John Hopkins property -- ones that are also fully leased in the San Diego area.

In April, an Alexandria partnership paid $13,685,000 for a 165,699-square-foot complex built for Titan Corp. at 3013-3033 Science Park Road in the Torrey Pines area.

Alexandria bought the Class B building from a Carey REIT entity based in New York.

The 32-year-old building is 100 percent leased to L-3 Linkabit -- a Titan entity with about 400 employees at the location, according to CoStar (Nasdaq: CSGP).

Linkabit in turn is credited with the spinoff of nearly 100 high-tech and biotech companies.

The former Titan property is situated on a 6.77-acre parcel within the Torrey Pines Science Park.

In the fall of 2010, Alexandria paid $128 million for the 360,000-square-foot, three-building Nobel Research Center.

Then, Illumina (Nasdaq: ILMN) paid $335 million to lease the entire space until 2031.

Alexandria’s 449,741-square-foot Campus Pointe property in the University Towne Centre submarket is expected to be full upon the arrival of Celgene's biotechnology firm, which is scheduled to occupy 172,000 square feet in the complex on Nov. 1.

Alexandria is proposing to build a 91,256-square-foot life science building at 12770 El Camino Real in Del Mar Heights, and another 121,513-square-foot building known as Sorrento Summit is planned in Sorrento Mesa.

The Pasadena REIT is also currently constructing the last 123,429-square-foot phase of the 454,041-square-foot three-building office complex at 5200 Research Place in the UTC submarket. The existing buildings are fully leased.

BioMed Realty -- which owns or has interests in about 13 million square feet of life science space overall and roughly 2 million square feet here -- also has many fully leased properties.

BioMed-owned properties not appearing to have any vacancies include a 176,000-square-foot building at 2855 Gazelle Court in Carlsbad, a build-to-suit for Isis Pharmaceuticals (Nasdaq: ISIS); an 81,204-square-foot building occupied by Vertex Pharmaceuticals at 11010 Torreyanna Road in Torrey Pines; and a 68,000-square-foot building fully occupied by Arena Pharmaceuticals (Nasdaq: ARNA) at 6122-6126 Nancy Ridge Drive in the Miramar area.

By contrast, another 62,896-square-foot BioMed-owned property at 4775 Executive Drive in the UTC area has yet to see a tenant, according to CoStar.

Along with Summers Ridge, another BioMed proposed development in the county listed by CoStar was a 102,967-square-foot building, planned at 4785 Executive Drive in the UTC area, which is awaiting enough tenants to get under way.

BioMed’s stock ended at $18.85 -- off 25 cents, or 1.31 percent, on the day Tuesday.

The Rancho Bernardo REITs stock price has ranged from $14.94 to $20.30 per share during the past 52 weeks.

Alexandria’s stock was off by 51 cents, or 0.69 percent, to $73.25 per share. That stock has ranged from $56.10 to $77.81 during the past 52 weeks.

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