Biomed Realty Trust 8-K Biomed Realty Trust Reports Fourth Quarter and Year-end 2007 Financial Results

Exhibit 99.2
Revised as of February 29, 2008

SUPPLEMENTAL OPERATING AND FINANCIAL DATA
DECEMBER 31, 2007

BioMed Realty Trust, Inc.	Investor Relations Contact	www.biomedrealty.com
17190 Bernardo Center Drive	Kent Griffin	(858) 485.9840
San Diego, CA 92128	Chief Financial Officer	(858) 485.9843 (fax)

TABLE OF CONTENTS
DECEMBER 31, 2007

	Page
2007 and Fourth Quarter Highlights		3
Investor Information		4
Equity Research Coverage		5
Financial and Operating Highlights		6
Capitalization Summary		7
Portfolio Summary		8
Consolidated Balance Sheets		9
Consolidated Statements of Income		10
FFO and AFFO		11
Reconciliation of EBITDA and AFFO		12
Reconciliation of Net Operating Income		13
Interest Coverage Ratios		14
Fixed Charge Coverage Ratios		15
Debt Summary		16
Debt Analysis		17
Debt Maturities		18
Common and Preferred Stock Data		19
Market Summary		20
Property Listing — Consolidated Portfolio		21-22
Repositioning and Redevelopment		23
Development and Land Parcels		24
Property Listing — Unconsolidated Partnerships		25
Lease Expirations		26
Expirations by Market		27
10 Largest Tenants		28
Same Property Analysis		29
Acquisitions		30
Dispositions		31
Leasing Activity		32
Tenant Improvements and Leasing Commissions		33
Non-GAAP Financial Measure Definitions		34
Property Definitions		35

This Supplemental Operating and Financial Data package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, you should exercise caution in interpreting and relying on these statements as they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the company’s control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, competition from other developers, owners and operators of real estate, adverse economic or real estate developments in the life science industry or the company’s target markets, the uncertainty of real estate development and acquisition activity, the ability to complete or integrate acquisitions and developments successfully, the availability and terms of financing and the use of debt to fund acquisitions and developments, the effect of local economic and market conditions, regulatory and tax law changes and other risks and uncertainties detailed from time to time in the company’s filings with the Securities and Exchange Commission, including the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

All dollar amounts shown in this report are unaudited.

This Supplemental Operating and Financial Data package is not an offer to sell or solicitation to buy securities of BioMed Realty Trust, Inc. Any offers to sell or solicitations to buy securities of BioMed Realty Trust, Inc. shall be made only by means of a prospectus approved for that purpose.

2

2007 AND FOURTH QUARTER HIGHLIGHTS
DECEMBER 31, 2007

2007 Highlights

• Funds from operations (FFO) increased 9.8% to $1.91 per diluted share versus the prior year

• Annual revenues increased 21.7% to $266.1 million versus the prior year

• Executed 53 leasing transactions representing approximately 1,500,000 square feet:

o 13 leases amended to extend their terms, totaling approximately 839,000 square feet

o 40 new leases totaling approximately 661,000 square feet

• Acquired, either directly or through our joint venture with Prudential Real Estate Investors, 14 properties for an aggregate of $653.8 million, excluding closing costs

• Completed the formation of a joint venture with Prudential Real Estate Investors, which subsequently acquired a portfolio of stabilized and development properties totaling approximately 470,000 rentable square feet

• Completed an offering of 9,200,000 shares of 7.375% Series A Cumulative Redeemable Preferred Stock for $25.00 per share, raising $222.4 million in net proceeds

• Amended our $250 million secured term loan, extending the term to August 2012 and lowering the borrowing rate by 60 basis points, and amended our unsecured revolving line of credit, increasing available borrowings to $600 million, lowering the borrowing rate, extending the term to August 2011 and increasing the potential borrowing capacity to $1.0 billion

• Continued to enhance the breadth and depth of our organization, including through the appointment of Karen Sztraicher as Vice President, Finance and Treasurer and Greg Lubushkin as Vice President — Chief Accounting Officer, along with the addition of Richard Gilchrist to our board of directors on December 12, 2007

Fourth Quarter 2007 Highlights

• FFO for the quarter was $31.6 million, or $0.46 per diluted share

• Executed 18 leasing transactions representing approximately 681,000 square feet:

o Four leases amended to extend their terms, totaling approximately 392,000 square feet - including an amendment to extend our lease with Centocor, Inc. (a subsidiary of Johnson & Johnson) for six years at our King of Prussia property

o 14 new leases totaling approximately 289,000 square feet — including a 102,000 square foot lease at the Pacific Research Center

• Increased the occupancy rate of the operating portfolio to 93.8%

• Disposed of the third of three non-core assets previously held for sale and owned through the Prudential Real Estate Investors joint venture

• Appointed Richard Gilchrist, President of the Investment Properties Group for The Irvine Company, to our board of directors

About BioMed Realty Trust

BioMed Realty Trust, Inc. is a real estate investment trust (REIT) focused on Providing Real Estate to the Life Science Industry^®. The company’s tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty Trust owns or has interests in 68 properties, representing 104 buildings with approximately 8.5 million rentable square feet, as well as approximately 1.9 million square feet of development in progress. These properties are located predominantly in the major U.S. life science markets of Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/New Jersey, which have well-established reputations as centers for scientific research. Additional information is available atwww.biomedrealty.com.

3

INVESTOR INFORMATION
DECEMBER 31, 2007

Company Information
New Corporate Headquarters	Trading Symbols	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive San Diego, CA 92128 (858) 485.9840 (858) 485.9843 (fax)	BMR BMRPrA	The Bank of New York Mellon 101 Barclay Street, 11E New York, NY 10286 (212) 815.3782	New York Stock Exchange
Please visit our corporate website at:www.biomedrealty.com
Board of Directors
Alan D. Gold	Barbara R. Cambon	Richard I. Gilchrist	Theodore D. Roth
Chairman
Gary A. Kreitzer	Edward A. Dennis, Ph.D.	Mark J. Riedy, Ph.D.	M. Faye Wilson
Executive Officers
Alan D. Gold	John F. Wilson, II	R. Kent Griffin, Jr.
President and Chief Executive Officer	Executive Vice President	Chief Financial Officer
Gary A. Kreitzer	Matthew G. McDevitt
Executive Vice President,	Regional Executive Vice President
General Counsel, and Secretary
2008 Tentative Schedule for Quarterly Results
First Quarter	April 30, 2008
Second Quarter	July 30, 2008
Third Quarter	October 29, 2008
Fourth Quarter	February 12, 2009

4

EQUITY RESEARCH COVERAGE
DECEMBER 31, 2007

Credit Suisse	Steven Benyik	(212) 538.0239
Friedman Billings Ramsey	Wilkes Graham / Matt Konrad	(703) 312.9737 / (703) 312.9731
KeyBanc Capital Markets	Jordan Sadler / Craig Mailman	(917) 368.2280 / (917) 368.2316
Merrill Lynch	Christopher Pike / John C. Clowney	(212) 449.1153 / (212) 449.1128
Morgan Stanley	David S. Cohen	(212) 761.8564
Raymond James	Paul D. Puryear	(727) 567.2253
RBC Capital Markets	David Rodgers	(216) 378.7626
Robert W. Baird & Co.	David Aubuchon / Justin Pelham-Webb	(314) 863.4235 / (314) 863.6413
Stifel, Nicolaus & Company, Inc.	John W. Guinee / Michael C. Hudgins	(410) 454.5520 / (410) 454.4830
UBS Securities	Omotayo Okusanya, II	(212) 713.1864
Wachovia Securities	Christopher Haley / Brendan Maiorana	(443) 263.6773 / (443) 263.6516

5

FINANCIAL AND OPERATING HIGHLIGHTS
DECEMBER 31, 2007
(In thousands, except per share and ratio amounts)

	As of or for the three months ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Selected Operating Data
Total revenues	$	64,050		$	64,832		$	68,429		$	68,798		$	62,978
EBITDA (1)		37,909			37,289			41,375			40,312			41,812
Adjusted EBITDA (1)		42,724			42,024			46,316			45,221			42,345
General and administrative expense		5,880			5,283			5,364			5,343			4,923
Interest expense		6,641			7,043			7,117			6,852			10,288
Capitalized interest		16,057			14,902			13,480			12,260			6,329
Operating margins (2)		75.3	%		72.3	%		71.7	%		70.3	%		73.7	%
General and administrative expense / Total revenues		9.2	%		8.1	%		7.8	%		7.8	%		7.8	%
Net income available to common stockholders		13,229			12,215			14,172			16,049			12,589
Net income per share — diluted	$	0.20		$	0.19		$	0.20		$	0.24		$	0.19
FFO (3)		31,574			30,792			33,804			34,175			32,079
FFO per share — diluted (3)	$	0.46		$	0.45		$	0.50		$	0.50		$	0.47
AFFO (3)		28,284			27,862			30,843			30,974			27,779
Coverage Ratios (4)
Interest coverage		6.8			6.1			6.6			6.7			4.2
Fixed charge coverage		3.6			3.3			3.6			3.6			3.7
Dividend per share — common stock	$	0.31		$	0.31		$	0.31		$	0.31		$	0.29
FFO payout		67.4	%		68.9	%		62.0	%		62.0	%		61.7	%
AFFO payout		75.6	%		75.6	%		68.9	%		68.9	%		70.7	%

(1)	For definitions and discussion of EBITDA and adjusted EBITDA, see page 34. For a quantitative reconciliation of the differences between adjusted EBITDA, EBITDA and net income available to common stockholders, see page 12.
(2)	See page 13 for detail.
(3)	For definitions and discussion of FFO and AFFO, see page 34. For a quantitative reconciliation of the differences between FFO, AFFO and net income available to common stockholders, see page 11. For a quantitative reconciliation of the differences between AFFO and cash flows provided by operating activities, see page 12.
(4)	For a discussion of coverage ratios, see page 34. See pages 14 and 15 for detail.

6

CAPITALIZATION SUMMARY
DECEMBER 31, 2007
(In thousands, except per share and ratio amounts)

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Capitalization:
Total common shares outstanding		65,571			65,466			65,463			65,455			65,426
Total units outstanding (1)		3,318			3,296			3,296			3,284			3,014
Total common shares and units outstanding		68,889			68,762			68,759			68,739			68,440
Common share price at quarter end	$	23.17		$	24.10		$	25.12		$	26.30		$	28.60
Equity value at quarter end (2)	$	1,596,172		$	1,657,166		$	1,727,229		$	1,807,836		$	1,957,384
Preferred stock at liquidation value		230,000			230,000			230,000			230,000			—
Consolidated debt		1,500,787			1,429,092			1,312,743			1,214,336			1,343,356
Total capitalization	$	3,326,959		$	3,316,258		$	3,269,972		$	3,252,172		$	3,300,740
Debt / Total assets		49.1	%		47.5	%		45.3	%		43.5	%		49.9	%
Debt / Total capitalization		45.1	%		43.1	%		40.2	%		37.3	%		40.7	%
Total consolidated debt:
Fixed rate debt / Total debt		36.5	%		39.6	%		43.8	%		47.5	%		43.1	%
Adjusted fixed rate debt / Total debt (3)		89.2	%		84.4	%		62.8	%		68.1	%		61.7	%
Total consolidated and share of unconsolidated partnership debt:
Fixed rate debt / Total debt		34.7	%		37.5	%		41.1	%		47.6	%		43.2	%
Adjusted fixed rate debt / Total debt (3)		84.5	%		79.7	%		58.9	%		68.1	%		61.8	%

(1)	Includes both operating partnership (OP) and long term incentive plan (LTIP) units outstanding.
(2)	Assumes conversion of 100% of the operating partnership and long term incentive plan units into shares of common stock.
(3)	Includes interest rate swap agreements that were effective at quarter end. Excludes forward swap agreements.

7

PORTFOLIO SUMMARY
DECEMBER 31, 2007

								Unconsolidated
	Consolidated Portfolio							Partnership Portfolio (1)							Total Portfolio
	December 31, 2007
			Rentable		Percent					Rentable		Percent					Rentable		Percent
	Properties		Square Feet		Leased			Properties		Square Feet		Leased			Properties		Square Feet		Leased
Stabilized properties (2)		40		5,472,851		99.2	%		4		257,308		100.0	%		44		5,730,159		99.2	%
Lease up properties (2)		10		896,564		59.5	%		1		n/a		n/a			11		896,564		59.5	%
Total operating portfolio		50		6,369,415		93.6	%		5		257,308		100.0	%		55		6,626,723		93.8	%
Repositioning and redevelopment properties (3)		7		1,828,546		17.8	%		—		—		n/a			7		1,828,546		17.8	%
Total current portfolio		57		8,197,961		76.7	%		5		257,308		100.0	%		62		8,455,269		77.4	%
Construction in progress (4)		3		1,241,000		72.0	%		2		700,000		16.1	%		5		1,941,000		51.8	%
Land parcels (4)		n/a		1,293,000		n/a			—		—		n/a			n/a		1,293,000		n/a
Total proforma portfolio (5)		60		10,731,961		76.1	%		7		957,308		38.6	%		67		11,689,269		73.0	%

	September 30, 2007
			Rentable		Percent					Rentable		Percent					Rentable		Percent
	Properties		Square Feet		Leased			Properties		Square Feet		Leased			Properties		Square Feet		Leased
Stabilized properties		40		5,472,851		99.2	%		4		257,308		100.0	%		44		5,730,159		99.2	%
Lease up properties		10		896,564		55.1	%		1		n/a		n/a			11		896,564		55.1	%
Total operating portfolio		50		6,369,415		93.0	%		5		257,308		100.0	%		55		6,626,723		93.3	%
Repositioning and redevelopment properties		7		1,871,353		11.9	%		—		—		n/a			7		1,871,353		11.9	%
Total current portfolio		57		8,240,768		74.6	%		5		257,308		100.0	%		62		8,498,076		75.3	%
Construction in progress		3		1,241,000		67.8	%		2		700,000		16.1	%		5		1,941,000		49.1	%
Land parcels		n/a		1,293,000		n/a			1		n/a		n/a			1		1,293,000		n/a
Total proforma portfolio (5)		60		10,774,768		73.7	%		8		957,308		38.7	%		68		11,732,076		70.8	%

	Consolidated Portfolio						Total Portfolio
	12/31/07			9/30/07			12/31/07			9/30/07
Properties		60			60			67			68
Buildings		98			98			103			103
Tenants		113			107			117			115
Percent leased — operating portfolio		93.6	%		93.0	%		93.8	%		93.3	%
Weighted average remaining lease term (years)		8.3			8.1			8.2			8.1

(1)	Includes 72,863 rentable square feet of McKellar Court (21%) and 884,445 rentable square feet of PREI joint venture properties (20%). See page 25 for investment dates.
(2)	See pages 21-22 for detail of consolidated portfolio, page 25 for detail of the unconsolidated partnership portfolio, and page 35 for definitions of terms.
(3)	See page 23 for detail of consolidated portfolio, page 25 for detail of the unconsolidated partnership portfolio, and page 35 for definitions of terms.
(4)	See page 24 for detail of consolidated portfolio, page 25 for detail of the unconsolidated partnership portfolio, and page 35 for definitions of terms.
(5)	Percent leased excludes land parcels.

8

CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2007
(In thousands)

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Assets
Investments in real estate, net	$	2,805,983		$	2,742,603		$	2,618,590		$	2,536,428		$	2,457,538
Investment in unconsolidated partnerships		22,588			21,741			20,425			2,429			2,436
Cash and cash equivalents		13,479			18,424			20,382			18,711			25,664
Restricted cash		8,867			10,003			9,203			6,912			6,426
Accounts receivable, net		4,457			3,722			3,952			4,669			5,985
Accrued straight-line rents, net		36,415			32,012			27,842			24,348			20,446
Acquired above-market leases, net		5,745			6,339			6,933			6,899			7,551
Deferred leasing costs, net		116,491			119,699			121,308			127,409			129,322
Deferred loan costs, net		15,567			17,052			15,132			16,289			17,608
Other assets		27,676			36,567			51,214			45,614			19,666
Total assets	$	3,057,268		$	3,008,162		$	2,894,981		$	2,789,708		$	2,692,642
Liabilities and Stockholders’ Equity
Liabilities:
Mortgage notes payable, net	$	379,680		$	397,341		$	399,522		$	401,680		$	403,836
Secured construction loan		425,160			389,904			356,071			324,796			286,355
Secured term loan		250,000			250,000			250,000			250,000			250,000
Exchangeable senior notes		175,000			175,000			175,000			175,000			175,000
Unsecured line of credit		270,947			216,847			132,150			62,860			228,165
Security deposits		7,090			7,513			6,883			6,762			7,704
Dividends and distributions payable		25,596			25,557			25,509			25,503			19,847
Accounts payable, accrued expenses and other liabilities		95,871			81,195			58,588			65,061			62,602
Acquired below-market leases, net		23,708			25,220			24,910			24,994			25,101
Total liabilities		1,653,052			1,568,577			1,428,633			1,336,656			1,458,610
Minority interests		17,280			19,269			18,873			19,179			19,319
Stockholders’ equity:
Preferred stock		222,413			222,413			222,413			222,413			—
Common stock		656			655			655			654			654
Additional paid-in capital		1,277,770			1,275,347			1,274,820			1,273,362			1,272,243
Accumulated other comprehensive (loss)/income		(21,762	)		6,945			26,551			8,287			8,417
Dividends in excess of earnings		(92,141	)		(85,044	)		(76,964	)		(70,843	)		(66,601	)
Total stockholders’ equity		1,386,936			1,420,316			1,447,475			1,433,873			1,214,713
Total liabilities and stockholders’ equity	$	3,057,268		$	3,008,162		$	2,894,981		$	2,789,708		$	2,692,642

9

CONSOLIDATED STATEMENTS OF INCOME
DECEMBER 31, 2007
(In thousands, except share and per share data)

	Three Months Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Revenues:
Rental	$	49,645		$	49,382		$	49,460		$	47,508		$	48,680
Tenant recoveries		14,471			15,084			15,670			16,510			14,290
Other (loss)/income		(66	)		366			3,299			4,780			8
Total revenues		64,050			64,832			68,429			68,798			62,978
Expenses:
Rental operations		12,006			12,789			12,880			13,115			10,594
Real estate taxes		3,816			5,079			5,543			5,916			5,968
Depreciation and amortization		17,645			17,665			19,637			17,254			18,778
General and administrative		5,880			5,283			5,364			5,343			4,923
Total expenses		39,347			40,816			43,424			41,628			40,263
Income from operations		24,703			24,016			25,005			27,170			22,715
Equity in net (loss)/income of unconsolidated partnerships		(199	)		(261	)		(454	)		22			21
Interest income		181			239			339			231			288
Interest expense		(6,641	)		(7,043	)		(7,117	)		(6,852	)		(10,288	)
Income from continuing operations before minority interests		18,044			16,951			17,773			20,571			12,736
Minority interests in continuing operations of consolidated partnerships		17			51			(113	)		—			22
Minority interests in continuing operations of operating partnership		(591	)		(545	)		(577	)		(699	)		(539	)
Income from continuing operations		17,470			16,457			17,083			19,872			12,219
Income from discontinued operations before gain on sale of assets and minority interests		—			—			252			387			386
(Loss)/gain on sale of real estate assets		—			(1	)		1,088			—			—
Minority interest attributable to discontinued operations		—			—			(57	)		(16	)		(16	)
(Loss)/income from discontinued operations		—			(1	)		1,283			371			370
Net income		17,470			16,456			18,366			20,243			12,589
Preferred stock dividends		(4,241	)		(4,241	)		(4,194	)		(4,194	)		—
Net income available to common stockholders	$	13,229		$	12,215		$	14,172		$	16,049		$	12,589
Income from continuing operations per share available to common stockholders:
Basic earnings per share	$	0.20		$	0.19		$	0.20		$	0.24		$	0.19
Diluted earnings per share	$	0.20		$	0.19		$	0.20		$	0.24		$	0.19
Net income per share available to common stockholders:
Basic earnings per share	$	0.20		$	0.19		$	0.22		$	0.25		$	0.19
Diluted earnings per share	$	0.20		$	0.19		$	0.22		$	0.25		$	0.19
Weighted-average common shares outstanding:
Basic		65,308,702			65,308,702			65,298,747			65,289,950			65,151,884
Diluted		68,307,355			68,274,908			68,269,656			68,231,124			68,218,566

10

FFO (1) AND AFFO (1) (2)
DECEMBER 31, 2007
(In thousands, except per share and ratio amounts)

	Three Months Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Reconciliation of net income to funds from operations (FFO):
Net income available to common stockholders	$	13,229		$	12,215		$	14,172		$	16,049		$	12,589
Adjustments:
Loss/(gain) on sale of real estate assets		—			1			(1,088	)		—			—
Minority interests in operating partnership		591			545			634			715			555
Depreciation & amortization — continuing operations		17,645			17,665			19,637			17,254			18,778
Depreciation & amortization — discontinued operations		—			—			91			137			137
Depreciation & amortization — unconsolidated partnerships		394			366			358			20			20
Depreciation & amortization — minority interest in consolidated joint ventures		(285	)		—			—			—			—
FFO	$	31,574		$	30,792		$	33,804		$	34,175		$	32,079
FFO per share — diluted	$	0.46		$	0.45		$	0.50		$	0.50		$	0.47
Dividends and distributions declared per common share	$	0.31		$	0.31		$	0.31		$	0.31		$	0.29
FFO payout ratio (3)		67.4	%		68.9	%		62.0	%		62.0	%		61.7	%
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO	$	31,574		$	30,792		$	33,804		$	34,175		$	32,079
Adjustments:
Master lease receipts (4)		232			232			232			232			272
Second generation capital expenditures		(532	)		(385	)		(301	)		(300	)		(1,590	)
Amortization of deferred loan costs		1,494			1,413			900			393			966
Amortization of fair-value of debt acquired		(629	)		(654	)		(231	)		(206	)		(619	)
Non-cash equity compensation		1,465			1,486			1,458			1,119			1,133
Straight line rents		(4,402	)		(4,152	)		(3,936	)		(3,902	)		(3,870	)
Fair-value lease revenue		(918	)		(870	)		(1,083	)		(537	)		(592	)
AFFO	$	28,284		$	27,862		$	30,843		$	30,974		$	27,779
Dividends and distributions declared per common share	$	0.31		$	0.31		$	0.31		$	0.31		$	0.29
AFFO payout ratio (5)		75.6	%		75.6	%		68.9	%		68.9	%		70.7	%

(1)	For definitions and discussion of FFO and AFFO, see page 34.
(2)	For a quantitative reconciliation of the differences between AFFO and cash flows provided by operating activities, see page 12.
(3)	Calculated as dividends and distributions declared per common share divided by FFO per share — diluted.
(4)	Revenues earned and received per the terms of master lease agreements that for GAAP purposes are not included in rental revenues, but as a reduction to assets.
(5)	Calculated as dividends and distributions declared per common share divided by AFFO per share — diluted.

11

RECONCILIATION OF EBITDA (1) AND AFFO (2)
DECEMBER 31, 2007
(In thousands)

	Three Months Ended
	12/31/07			9/30/07			6/30/07		3/31/07		12/31/06
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	13,229		$	12,215		$	14,172	$	16,049	$	12,589
Interest expense		6,641			7,043			7,117		6,852		10,288
Depreciation & amortization — continuing operations		17,645			17,665			19,637		17,254		18,778
Depreciation & amortization — discontinued operations		—			—			91		137		137
Depreciation & amortization — unconsolidated partnerships		394			366			358		20		20
EBITDA		37,909			37,289			41,375		40,312		41,812
Minority interests		574			494			747		715		533
Preferred dividends		4,241			4,241			4,194		4,194		—
Adjusted EBITDA	$	42,724		$	42,024		$	46,316	$	45,221	$	42,345
Reconciliation of cash flows provided by operating activities to adjusted funds from operations (AFFO):
Cash flows provided by operating activities	$	31,779		$	31,991		$	27,955	$	23,118	$	8,635
Changes in other assets and liabilities		(3,727	)		(4,361	)		2,656		7,624		18,872
Master lease receipts		232			232			232		232		272
AFFO	$	28,284		$	27,862		$	30,843	$	30,974	$	27,779

(1)	For definitions and discussion of EBITDA and adjusted EBITDA, see page 34.
(2)	For a definition and discussion of AFFO, see page 34.

12

RECONCILIATION OF NET OPERATING INCOME (1)
DECEMBER 31, 2007
(Dollars in thousands)

	Three Months Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Net income	$	17,470		$	16,456		$	18,366		$	20,243		$	12,589
Loss/(income) from discontinued operations		—			1			(1,283	)		(371	)		(370	)
Minority interests from continuing operations		574			494			690			699			517
Equity in net loss/(income) of unconsolidated partnerships		199			261			454			(22	)		(21	)
Interest expense		6,641			7,043			7,117			6,852			10,288
Interest income		(181	)		(239	)		(339	)		(231	)		(288	)
Income from operations		24,703			24,016			25,005			27,170			22,715
Depreciation and amortization		17,645			17,665			19,637			17,254			18,778
General and administrative		5,880			5,283			5,364			5,343			4,923
Consolidated net operating income	$	48,228		$	46,964		$	50,006		$	49,767		$	46,416
Revenues:
Rental	$	49,645		$	49,382		$	49,460		$	47,508		$	48,680
Tenant recoveries		14,471			15,084			15,670			16,510			14,290
Other (loss)/income		(66	)		366			3,299			4,780			8
Total revenues		64,050			64,832			68,429			68,798			62,978
Expenses:
Rental operations		12,006			12,789			12,880			13,115			10,594
Real estate taxes		3,816			5,079			5,543			5,916			5,968
Total operating expenses		15,822			17,868			18,423			19,031			16,562
Consolidated net operating income	$	48,228		$	46,964		$	50,006		$	49,767		$	46,416
Operating margin (2) (4)		75.3	%		72.3	%		71.7	%		70.3	%		73.7	%
Operating expense recovery (3) (4)		91.5	%		84.4	%		85.1	%		86.8	%		86.3	%

(1)	For a definition and discussion of net operating income, see page 34.
(2)	Operating margin is calculated as ((rental revenue + tenant recovery revenue — rental operations — real estate taxes) / (rental revenue + tenant recovery revenue)).
(3)	Operating expense recovery is calculated as (tenant recovery revenue / (rental operations + real estate taxes)).
(4)	Includes historical activity for disposed properties, except in the period disposed.

13

INTEREST COVERAGE RATIOS (1)
DECEMBER 31, 2007
(In thousands, except ratios)

	Three Months Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Excluding capitalized interest:
Adjusted EBITDA	$	42,724		$	42,024		$	46,316		$	45,221		$	42,345
Interest expense:
Interest expense		6,641			7,043			7,117			6,852			10,288
Interest expense — unconsolidated partnerships		476			633			579			50			50
Amortization of deferred loan costs		(1,494	)		(1,413	)		(900	)		(393	)		(966	)
Amortization of fair-value of debt acquired		629			654			231			206			619
Total interest expense	$	6,252		$	6,917		$	7,027		$	6,715		$	9,991
Interest coverage ratio		6.8			6.1			6.6			6.7			4.2
Including capitalized interest:
Adjusted EBITDA	$	42,724		$	42,024		$	46,316		$	45,221		$	42,345
Interest expense:
Interest expense		6,641			7,043			7,117			6,852			10,288
Interest expense — unconsolidated partnerships		476			633			579	��		50			50
Capitalized interest		16,057			14,902			13,480			12,260			6,329
Amortization of deferred loan costs		(1,494	)		(1,413	)		(900	)		(393	)		(966	)
Amortization of fair-value of debt acquired		629			654			231			206			619
Amortization of capitalized interest		26			11			11			11			11
Total interest expense	$	22,335		$	21,830		$	20,518		$	18,986		$	16,331
Interest coverage ratio		1.9			1.9			2.3			2.4			2.6

(1) For a discussion of coverage ratios, see page 34.

14

FIXED CHARGE COVERAGE RATIOS (1)
DECEMBER 31, 2007
(In thousands, except ratios)

	Three Months Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Excluding capitalized interest:
Adjusted EBITDA	$	42,724		$	42,024		$	46,316		$	45,221		$	42,345
Fixed charges:
Interest expense		6,641			7,043			7,117			6,852			10,288
Interest expense — unconsolidated partnerships		476			633			579			50			50
Amortization of deferred loan costs		(1,494	)		(1,413	)		(900	)		(393	)		(966	)
Amortization of fair value of debt acquired		629			654			231			206			619
Principal payments		1,510			1,528			1,507			1,512			1,411
Principal payments — unconsolidated partnerships		6			6			6			6			6
Preferred dividends		4,241			4,241			4,194			4,194			—
Total fixed charges	$	12,009		$	12,692		$	12,734		$	12,427		$	11,408
Fixed charge coverage ratio		3.6			3.3			3.6			3.6			3.7
Including capitalized interest:
Adjusted EBITDA	$	42,724		$	42,024		$	46,316		$	45,221		$	42,345
Fixed charges:
Interest expense		6,641			7,043			7,117			6,852			10,288
Interest expense — unconsolidated partnerships		476			633			579			50			50
Capitalized interest		16,057			14,902			13,480			12,260			6,329
Amortization of capitalized interest		26			11			11			11			11
Amortization of deferred loan costs		(1,494	)		(1,413	)		(900	)		(393	)		(966	)
Amortization of fair value of debt acquired		629			654			231			206			619
Principal payments		1,510			1,528			1,507			1,512			1,411
Principal payments — unconsolidated partnerships		6			6			6			6			6
Preferred dividends		4,241			4,241			4,194			4,194			—
Total fixed charges	$	28,092		$	27,605		$	26,225		$	24,698		$	17,748
Fixed charge coverage ratio		1.5			1.5			1.8			1.8			2.4

(1) For a discussion of coverage ratios, see page 34.

15

DEBT SUMMARY
DECEMBER 31, 2007
(Dollars in thousands)

	Stated			Effective			Principal		Unamortized		Carrying		Maturity
	Rate			Rate			Balance		Premium		Value		Date
Consolidated debt:
Mortgage notes payable:
Ardentech Court		7.25	%		5.06	%	$	4,564	$	386	$	4,950		07/12
Bayshore Boulevard		4.55	%		4.55	%		15,335		—		15,335		01/10
Bridgeview Technology Park I		8.07	%		5.04	%		11,508		1,000		12,508		01/11
Eisenhower Road		5.80	%		4.63	%		2,113		10		2,123		05/08
40 Erie Street		7.34	%		4.90	%		17,625		243		17,868		08/08
500 Kendall Street (Kendall D)		6.38	%		5.45	%		69,437		4,513		73,950		12/18
Lucent Drive		5.50	%		5.50	%		5,543		—		5,543		01/15
Monte Villa Parkway		4.55	%		4.55	%		9,336		—		9,336		01/10
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,785		514		7,299		09/12
Road to the Cure		6.70	%		5.78	%		15,427		701		16,128		01/14
Science Center Drive		7.65	%		5.04	%		11,301		964		12,265		07/11
Shady Grove Road		5.97	%		5.97	%		147,000		—		147,000		09/16
Sidney Street		7.23	%		5.11	%		29,986		2,395		32,381		06/12
9885 Towne Centre Drive		4.55	%		4.55	%		21,323		—		21,323		01/10
900 Uniqema Boulevard		8.61	%		5.61	%		1,509		162		1,671		05/15
Total / weighted-average on fixed rate mortgages		6.23	%		5.47	%		368,792		10,888		379,680
Fixed rate debt:
$175 million unsecured exchangeable notes		4.50	%		4.50	%		175,000		—		175,000		10/26
Total / weighted-average fixed rate debt		5.67	%		5.16	%		543,792		10,888		554,680
Variable rate debt:
$250 million secured term loan		7.32	%		7.32	%		250,000		—		250,000		08/12
$600 million unsecured line of credit		6.33	%		6.33	%		270,947		—		270,947		08/11
$550 million secured construction loan		6.14	%		6.14	%		425,160		—		425,160		11/09
Total / weighted-average variable rate debt	��	6.50	%		6.50	%		946,107		—		946,107
Total / weighted-average consolidated debt		6.20	%		6.01	%	$	1,489,899	$	10,888	$	1,500,787
Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)		6.04	%		6.04	%	$	83,285		—	$	83,285		04/08
McKellar Court (21%) (fixed)		8.56	%		4.63	%		2,203		—		2,203		01/10
Total / weighted-average share of unconsolidated partnership debt		6.10	%		6.00	%		85,488		—		85,488
Total / weighted-average consolidated and share of unconsolidated partnership debt		6.20	%		6.01	%	$	1,575,387	$	10,888	$	1,586,275

16

DEBT ANALYSIS
DECEMBER 31, 2007
(Dollars in thousands)

Secured and Unsecured Debt Analysis

						Weighted			Weighted
			Percentage			Average			Average
	Principal		of Principal			Stated			Effective
	Balance		Balance			Interest Rate			Interest Rate
Secured debt	$	1,043,952		70.1	%		6.45	%		6.18	%
Unsecured debt		445,947		29.9	%		5.61	%		5.61	%
Total consolidated debt	$	1,489,899		100.0	%		6.20	%		6.01	%

Fixed and Variable Rate Debt Analysis (1)

						Weighted			Weighted
			Percentage			Average			Average
	Principal		of Principal			Stated			Effective
	Balance		Balance			Interest Rate			Interest Rate
Fixed rate debt	$	543,792		36.5	%		5.67	%		5.16	%
Variable rate debt — hedged		785,000		52.7	%		5.94	%		5.94	%
Variable rate debt — unhedged		161,107		10.8	%		6.22	%		6.22	%
Total consolidated debt	$	1,489,899		100.0	%		5.87	%		5.68	%

	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Total consolidated debt:
Fixed rate debt / Total debt		36.5	%		39.6	%		43.8	%		47.5	%		43.1	%
Adjusted fixed rate debt / Total debt (1)		89.2	%		84.4	%		62.8	%		68.1	%		61.7	%
Total consolidated debt and share of unconsolidated partnership debt:
Fixed rate debt / Total debt		34.7	%		37.5	%		41.1	%		47.6	%		43.2	%
Adjusted fixed rate debt / Total debt (1)		84.5	%		79.7	%		58.9	%		68.1	%		61.8	%

(1) Includes interest rate swap agreements that were effective at quarter end. Excludes forward swap agreements.

17

DEBT ANALYSIS
DECEMBER 31, 2007
(Dollars in thousands)

Weighted-average debt maturity is 5.9 years and 5.6 years for consolidated and unconsolidated debt, respectively.

	2008		2009		2010		2011		2012		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	24,454	$	5,026	$	47,446	$	26,220	$	41,421	$	224,225	$	368,792
$175 million unsecured exchangeable notes		—		—		—		—		—		175,000		175,000
Total fixed rate debt		24,454		5,026		47,446		26,220		41,421		399,225		543,792
Variable rate debt:
$250 million secured term loan		—		—		—		—		250,000		—		250,000
$600 million unsecured line of credit		—		—		—		270,947		—		—		270,947
$550 million secured construction loan		—		425,160		—		—		—		—		425,160
Total variable rate debt		—		425,160		—		270,947		250,000		—		946,107
Total consolidated debt	$	24,454	$	430,186	$	47,446	$	297,167	$	291,421	$	399,225	$	1,489,899
Share of unconsolidated partnership debt:
PREI secured loan (20%) (variable)	$	83,285	$	—	$	—	$	—	$	—	$	—	$	83,285
McKellar Court (21%) (fixed)		29		32		2,142		—		—		—		2,203
Share of total unconsolidated partnership debt	$	83,314	$	32	$	2,142	$	—	$	—	$	—	$	85,488
Total consolidated and share of unconsolidated partnership debt	$	107,768	$	430,218	$	49,588	$	297,167	$	291,421	$	399,225	$	1,575,387

18

COMMON AND PREFERRED STOCK DATA
DECEMBER 31, 2007
(Shares in thousands)

SUMMARY OF COMMON SHARES

	Three Months Ended
	12/31/07			9/30/07			6/30/07			3/31/07			12/31/06
Weighted average common shares outstanding		65,308			65,308			65,299			65,290			65,152
Weighted average OP and LTIP units outstanding		2,917			2,917			2,917			2,915			2,864
Dilutive effect of restricted stock		82			50			54			26			203
Diluted common shares		68,307			68,275			68,270			68,231			68,219
Closing common shares, LTIP and OP units outstanding		68,890			68,762			68,759			68,739			68,440
Preferred shares outstanding		9,200			9,200			9,200			9,200			—
High price	$	26.25		$	26.20		$	29.94		$	31.20		$	32.41
Low price	$	20.89		$	21.00		$	24.13		$	25.59		$	27.71
Average closing price	$	23.52		$	24.17		$	27.59		$	28.52		$	30.19
Closing price	$	23.17		$	24.10		$	25.12		$	26.30		$	28.60
Dividends per share — annualized	$	1.24		$	1.24		$	1.24		$	1.24		$	1.16
Closing dividend yield — annualized		5.4	%		5.1	%		4.9	%		4.7	%		4.1	%

DIVIDENDS PER SHARE

	12/31/07		9/30/07		6/30/07		3/31/07		12/31/06
Common Stock — BMR
Amount	$	0.31	$	0.31	$	0.31	$	0.31	$	0.29
Declared	December 12, 2007		September 14, 2007		June 15, 2007		March 15, 2007		December 13, 2006
Record	December 31, 2007		September 28, 2007		June 29, 2007		March 30, 2007		December 29, 2006
Paid	January 15, 2008		October 15, 2007		July 16, 2007		April 16, 2007		January 16, 2007
Preferred Stock — BMRPrA
Amount	$	0.46094	$	0.46094	$	0.45582	$	0.45582		—
Declared	December 12, 2007		September 14, 2007		June 15, 2007		March 15, 2007			—
Record	December 31, 2007		September 28, 2007		June 29, 2007		March 30, 2007			—
Paid	January 15, 2008		October 15, 2007		July 16, 2007		April 16, 2007			—

19

MARKET SUMMARY
DECEMBER 31, 2007

													Annualized							Annualized
					Percent of					Percent of			Base Rent				Percent of			Base Rent
			Rentable		Total			Annualized		Annualized			per Leased		Annualized		Annualized			per Leased
			Square		Rentable			Base Rent		Base Rent			Sq Ft		Base Rent		Base Rent			Sq Ft
Market	Properties		Feet		Sq Ft			Current (1)		Current			Current		at Expiration		at Expiration			at Expiration
								(in thousands)							(in thousands)
Boston		12		1,297,166		15.4	%	$	48,876		24.6	%	$	38.71	$	53,400		22.1	%	$	42.29
Maryland		5		1,144,968		13.5	%		44,336		22.3	%		38.72		62,822		26.0	%		54.87
San Francisco		11		2,655,594		31.4	%		25,658		12.9	%		21.50		31,612		13.1	%		26.49
San Diego		15		945,318		11.2	%		23,458		11.8	%		26.97		31,593		13.1	%		36.33
New York / New Jersey		3		873,369		10.3	%		15,753		7.9	%		20.71		16,628		6.9	%		21.86
Pennsylvania		7		778,251		9.2	%		14,920		7.5	%		20.69		17,136		7.1	%		23.76
Seattle		4		253,788		3.0	%		5,740		3.0	%		36.46		6,627		2.7	%		42.09
University Related — Other		3		249,507		3.0	%		7,349		3.8	%		29.46		8,569		3.6	%		34.34
Total consolidated portfolio / weighted average		60		8,197,961		97.0	%	$	186,089		93.8	%	$	29.60	$	228,387		94.6	%	$	36.33
Unconsolidated partnership properties (2)		7		257,308		3.0	%		12,283		6.2	%		47.74		12,912		5.4	%		50.18
Total portfolio / weighted average		67		8,455,269		100.0	%	$	198,372		100.0	%	$	30.31	$	241,298		100.0	%	$	36.87

(1)	Current annualized base rent is the monthly contractual rent as of the current quarter end, or if rent has not yet commenced, the first monthy rent payment due, multiplied by 12 months.
(2)	Consists of 72,863 rentable square feet of McKellar Court (21%) and 184,445 rentable square feet of PREI joint venture properties (20%).

20

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
DECEMBER 31, 2007

						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/07			9/30/07
	Boston
1	Albany Street	May 31, 2005	Stabilized		2		75,003		0.9	%		75,003		100.0	%		100.0	%
2	Center for Life Science¦Boston	November 17, 2006	CIP		—		—		—			—		—			—
3	Charles Street (2)	April 7, 2006	Stabilized		1		47,912		0.6	%		47,912		100.0	%		100.0	%
4	Coolidge Avenue	April 5, 2005	Stabilized		1		37,400		0.5	%		37,400		100.0	%		100.0	%
5	21 Erie Street	May 31, 2005	Stabilized		1		48,627		0.6	%		48,627		100.0	%		100.0	%
6	40 Erie Street	May 31, 2005	Stabilized		1		100,854		1.2	%		100,854		100.0	%		100.0	%
7	47 Erie Street Parking Structure	May 31, 2005	Stabilized		1	447 Stalls			n/a		447 Stalls			n/a			n/a
8	Fresh Pond Research Park	April 5, 2005	Lease Up		6		90,702		1.1	%		71,376		78.7	%		78.7	%
9	675 W. Kendall Street (Kendall A)	May 31, 2005	Stabilized		1		302,919		3.7	%		293,011		96.7	%		96.7	%
10	500 Kendall Street (Kendall D)	May 31, 2005	Stabilized		1		349,325		4.3	%		344,097		98.5	%		98.5	%
11	Sidney Street	May 31, 2005	Stabilized		1		191,904		2.3	%		191,904		100.0	%		100.0	%
12	Vassar Street	May 31, 2005	Stabilized		1		52,520		0.6	%		52,520		100.0	%		100.0	%
	Total Boston				17		1,297,166		15.8	%		1,262,704		97.3	%		97.3	%
	Maryland
13	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.9	%		77,225		100.0	%		100.0	%
14	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		3.5	%		289,912		100.0	%		100.0	%
15	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.6	%		51,181		100.0	%		100.0	%
16	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		7.9	%		635,058		100.0	%		100.0	%
17	Tributary Street	December 17, 2004	Stabilized		1		91,592		1.1	%		91,592		100.0	%		100.0	%
	Total Maryland				8		1,144,968		14.0	%		1,144,968		100.0	%		100.0	%
	San Francisco
18	Ardentech Court (2)	November 18, 2004	Rep / Redev		1		55,588		0.7	%		55,588		100.0	%		100.0	%
19	Ardenwood Venture (3)	June 14, 2006	Lease Up		1		72,500		0.9	%		—		—			—
20	Bayshore Boulevard	August 17, 2004	Stabilized		1		183,344		2.2	%		183,344		100.0	%		100.0	%
21	Bridgeview Technology Park I (2)	September 10, 2004	Lease Up		2		212,673		2.6	%		198,069		93.1	%		73.9	%
22	Bridgeview Technology Park II	March 16, 2005	Stabilized		1		50,400		0.6	%		50,400		100.0	%		100.0	%
23	Dumbarton Circle	May 27, 2005	Stabilized		3		44,000		0.5	%		44,000		100.0	%		100.0	%
24	Eccles Avenue (2)	December 1, 2005	Stabilized		1		152,145		1.9	%		152,145		100.0	%		100.0	%
25	Forbes Boulevard (2)	September 5, 2007	Stabilized		1		237,984		2.9	%		237,984		100.0	%		100.0	%
26	Industrial Road	August 17, 2004	Stabilized		1		169,490		2.1	%		169,490		100.0	%		100.0	%
27	Kaiser Drive (2)	August 25, 2005	Lease Up		1		87,953		1.1	%		—		—			—
28	Pacific Research Center (2)	July 11, 2006	Rep / Redev		10		1,389,517		16.9	%		102,342		7.4	%		—
	Total San Francisco				23		2,655,594		32.4	%		1,193,362		44.9	%		38.9	%
	San Diego
29	Balboa Avenue	August 13, 2004	Stabilized		1		35,344		0.4	%		35,344		100.0	%		100.0	%
30	Bernardo Center Drive (2)	August 13, 2004	Rep / Redev		1		61,286		0.7	%		61,286		100.0	%		100.0	%
31	Faraday Avenue	September 19, 2005	Stabilized		1		28,704		0.4	%		28,704		100.0	%		100.0	%
32	John Hopkins Court (2)	August 16, 2006	Rep / Redev		1		69,946		0.9	%		—		—			—
33	6114-6154 Nancy Ridge Drive	May 2, 2007	Stabilized		3		112,000		1.4	%		112,000		100.0	%		100.0	%
34	6828 Nancy Ridge Drive	April 21, 2005	Stabilized		1		42,138		0.5	%		42,138		100.0	%		100.0	%
35	Pacific Center Boulevard	August 24, 2007	Stabilized		2		66,745		0.8	%		66,745		100.0	%		100.0	%
36	Road to the Cure	December 14, 2006	Lease Up		1		67,998		0.8	%		29,464		43.3	%		43.3	%

21

PROPERTY LISTING — CONSOLIDATED PORTFOLIO
DECEMBER 31, 2007

						Rentable		Percent of			Leased
			Property			Square		Rentable			Square		Percent Leased
	Property	Acquisition Date	Status (1)	Buildings		Feet		Sq Ft			Feet		12/31/07			9/30/07
	San Diego (Cont.)
37	San Diego Science Center	October 21, 2004	Lease Up		1		105,364		1.3	%		77,860		73.9	%		74.8	%
38	Science Center Drive	September 24, 2004	Stabilized		1		53,740		0.7	%		53,740		100.0	%		100.0	%
39	Sorrento Valley Boulevard	December 7, 2006	Lease Up		1		54,924		0.7	%		47,417		86.3	%		86.3	%
40	Torreyana Road	March 22, 2007	Stabilized		1		81,204		1.0	%		81,204		100.0	%		100.0	%
41	9865 Towne Centre Drive	April 10, 2007	CIP		—		—		—			—		—			—
42	9885 Towne Centre Drive	August 12, 2004	Stabilized		3		115,870		1.4	%		115,870		100.0	%		100.0	%
43	Waples Street (4)	March 1, 2005	Stabilized		1		50,055		0.6	%		45,026		90.0	%		100.0	%
	Total San Diego				19		945,318		11.6	%		796,798		84.3	%		84.9	%
	New York / New Jersey
44	Graphics Drive (2)	March 17, 2005	Lease Up		1		72,300		0.9	%		32,029		44.3	%		44.3	%
45	Landmark at Eastview	August 12, 2004	Stabilized		8		751,648		9.2	%		728,725		97.0	%		96.5	%
46	One Research Way (2)	May 31, 2006	Rep / Redev		1		49,421		0.6	%		—		—			—
	Total New York / New Jersey				10		873,369		10.7	%		760,754		87.1	%		86.7	%
	Pennsylvania
47	Eisenhower Road (2)	August 13, 2004	Lease Up		1		27,750		0.3	%		—		—			—
48	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.9	%		71,500		100.0	%		100.0	%
49	King of Prussia	August 11, 2004	Stabilized		5		427,109		5.2	%		427,109		100.0	%		100.0	%
50	Phoenixville Pike (2)	May 5, 2005	Lease Up		1		104,400		1.3	%		77,455		74.2	%		74.2	%
51	Spring Mill Drive	July 20, 2006	Stabilized		1		76,378		0.9	%		73,984		96.9	%		96.9	%
52	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
53	1000 Uniqema Boulevard	September 30, 2005	Stabilized		1		59,821		0.7	%		59,821		100.0	%		100.0	%
	Total Pennsylvania				11		778,251		9.4	%		721,162		92.7	%		92.7	%
	Seattle
54	Elliott Avenue (2)	August 24, 2004	Rep / Redev		1		134,989		1.6	%		63,836		47.3	%		47.3	%
55	Fairview Avenue (5)	January 12, 2006	CIP		—		—		—			—		—			—
56	Monte Villa Parkway	August 17, 2004	Stabilized		1		51,000		0.6	%		51,000		100.0	%		100.0	%
57	217th Place (2)	November 21, 2006	Rep / Redev		1		67,799		0.8	%		42,628		62.9	%		62.9	%
	Total Seattle				3		253,788		3.0	%		157,464		62.0	%		62.0	%
	University Related — Other
58	Lucent Drive	May 31, 2005	Stabilized		1		21,500		0.3	%		21,500		100.0	%		100.0	%
59	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		1.0	%		78,023		100.0	%		100.0	%
60	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.8	%		149,984		100.0	%		100.0	%
	Total University Related — Other				7		249,507		3.1	%		249,507		100.0	%		100.0	%
	Total / weighted average				98		8,197,961		100.0	%		6,286,719		76.7	%		74.6	%

(1)	For a definition of Property Status, see page 35.
(2)	Properties which are being redeveloped or management believes could be redeveloped in whole or in part for laboratory use. See page 23 for details.
(3)	We own 87.5% of the limited liability company that owns the Ardenwood Venture property.
(4)	We own 70% of the limited liability company that owns the Waples Street property.
(5)	We own 70% of the limited liability company that owns the Fairview Avenue development.

22

REPOSITIONING AND REDEVELOPMENT
DECEMBER 31, 2007
(Dollars in thousands)

		Total Property					Estimated
		Rentable		Percent Leased /			In-Service
Property	Market	Square Feet		Pre-leased			Date (1)
Ardentech Court	San Francisco		55,588		100.0	%		Q1 2008
Bernardo Center Drive (2)	San Diego		61,286		100.0	%		Q1 2008
Elliott Avenue (3)	Seattle		134,989		47.3	%		Q4 2009
John Hopkins Court	San Diego		69,946		—			Q3 2008
One Research Way	New York/New Jersey		49,421		—			Q2 2008
Pacific Research Center	San Francisco		1,389,517		7.4	%		Q2 2009
217th Place	Seattle		67,799		62.9	%		Q3 2008
Total / weighted average			1,828,546		17.8	%

	Cost Estimate				Cost Estimate Per Square Foot
	Low Estimate		High Estimate		Low Estimate		High Estimate
Investment to date	$	367,000	$	367,000	$	200.71	$	200.71
Future cost estimate		135,000		185,000		73.83		101.17
Total cost estimate	$	502,000	$	552,000	$	274.54	$	301.88

	Potential
	Redevelopment
	Square Feet
Stabilized properties		438,041
Lease up properties		505,076
Total		943,117

(1)	Management’s estimate of the time in which construction is substantially completed. A project is considered substantially complete and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity.
(2)	Includes 51,980 square feet leased to our operating partnership. No revenue will be recognized with respect to this related party lease.
(3)	We anticipate that the property will be vacant upon remaining lease expiration in Q1 2008.

23

DEVELOPMENT AND LAND PARCELS
DECEMBER 31, 2007
(Dollars in thousands)

CONSTRUCTION IN PROGRESS:

									Estimated		Estimated
		Estimated		Percent			Investment		Total		In-Service
Property	Market	Square Feet		Pre-leased			to Date		Investment		Date (1)
Center for Life Science / Boston	Boston		703,000		80.1	%	$	664,000	$	730,000		Q1 2009
Fairview Avenue	Seattle		94,000		17.9	%		20,700		44,000		Q1 2009
Landmark at Eastview	New York / New Jersey		360,000		63.8	%		42,000		145,000		Q2 2009
9865 Towne Centre Drive	San Diego		84,000		100.0	%		13,800		30,000		Q3 2008
Total			1,241,000		72.0	%	$	740,500	$	949,000

LAND DEVELOPMENT PARCELS:

	Estimated
	Developable
Market	Square Feet
Boston		50,000
Maryland		500,000
San Francisco		508,000
New York / New Jersey		130,000
Pennsylvania		65,000
Seattle		40,000
Total		1,293,000

(1) Management’s estimate of the time in which construction is substantially completed. A project is considered substantially complete and held available for occupancy upon the completion of tenant improvements, but no later than one year from cessation of major construction activity.

24

PROPERTY LISTING — UNCONSOLIDATED PARTNERSHIPS
DECEMBER 31, 2007
(Dollars in thousands)

Rentable

Leased

Percent Leased /

Property

Square

Square

Pre-leased

Property

Acquisition Date

Status (1)

Buildings

Feet (2)

Feet

12/31/07

9/30/07

Market

McKellar Court

1

McKellar Court

September 30, 2004

Stabilized

1

72,863

72,863

100.0

%

100.0

%

San Diego

PREI

2

320 Bent Street

April 4, 2007

Stabilized

1

184,445

184,445

100.0

%

100.0

%

Boston

3

301 Binney Street

April 4, 2007

CIP

—

420,000

112,560

26.8

%

26.8

%

Boston

4

301 Binney Garage

April 4, 2007

Lease Up

1

503 Stalls

n/a

n/a

n/a

Boston

5

650 E. Kendall Street (Kendall B)

April 4, 2007

CIP

—

280,000

—

—

—

Boston

6

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1

1,409 Stalls

n/a

n/a

n/a

Boston

7

Kendall Crossing Apartments

April 4, 2007

Stabilized

1

37 Apts.

n/a

n/a

n/a

Boston

	McKellar
	Court (3)			PREI			Total
Total assets	$	16,487		$	540,261		$	556,748
Total debt		10,492			416,422			426,914
BioMed’s pro rata share of debt		2,203			83,285			85,488
BioMed’s net investment in unconsolidated partnerships	$	2,407		$	20,181		$	22,588
BioMed ownership percentage		21	%		20	%

(1)	For a definition of Property Status, see page 35.
(2)	Estimates for purposes of construction in progress and land parcels.
(3)	We own a general partnership interest in the limited partnership that owns this property, which entitles us to 75% of the gains upon a sale of the property and 21% of the operating cash flows.

25

LEASE EXPIRATIONS
DECEMBER 31, 2007

Weighted-average remaining lease term is 8.3 years for the consolidated portfolio and 8.2 years for the total portfolio.

			Percent of
			Total								Annualized							Annualized
	Rentable		Rentable					Percent of			Base Rent				Percent of			Base Rent
	Square Feet		Sq Ft			Annualized		Annualized			per Leased		Annualized		Annualized			per Leased
	of Expiring		of Expiring			Base Rent		Base Rent			Sq Ft		Base Rent		Base Rent			Sq Ft
Expiration	Leases		Leases			Current (1)		Current			Current		at Expiration		at Expiration			at Expiration
						(in thousands)							(in thousands)
Month-to-month		7,970		0.1	%	$	154		0.1	%	$	19.37	$	154		0.1	%	$	19.37
First quarter 2008		284,803		4.4	%		5,694		2.9	%		19.99		6,371		2.6	%		22.37
Second quarter 2008		5,446		0.1	%		156		0.1	%		28.56		156		0.1	%		28.56
Third quarter 2008		17,176		0.3	%		333		0.2	%		19.41		333		0.1	%		19.41
Fourth quarter 2008		42,853		0.7	%		1,858		0.9	%		43.35		1,915		0.8	%		44.68
2008		358,248		5.6	%		8,195		4.2	%		22.87		8,929		3.7	%		24.92
2009		366,332		5.6	%		6,987		3.5	%		19.07		7,089		2.9	%		19.35
2010		753,846		11.5	%		16,979		8.6	%		22.52		17,140		7.1	%		22.74
2011		360,856		5.5	%		12,519		6.3	%		34.69		13,233		5.5	%		36.67
2012		407,964		6.2	%		9,116		4.6	%		22.34		9,958		4.1	%		24.41
2013		507,067		7.7	%		9,930		5.0	%		19.58		12,725		5.3	%		25.10
2014		562,771		8.6	%		12,211		6.2	%		21.70		14,181		5.9	%		25.20
2015		84,157		1.3	%		2,671		1.3	%		31.73		3,234		1.3	%		38.43
2016		603,067		9.2	%		22,295		11.2	%		36.97		25,398		10.5	%		42.11
2017		147,266		2.3	%		2,424		1.2	%		16.46		4,234		1.8	%		28.75
Thereafter		2,392,453		36.5	%		95,047		47.9	%		39.73		125,179		51.9	%		52.32
Total / weighted average		6,544,027		100.0	%	$	198,372		100.0	%	$	30.31	$	241,298		100.0	%	$	36.87

(1) Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthy rent payment due, multiplied by 12 months.

26

EXPIRATIONS BY MARKET
DECEMBER 31, 2007

	Rentable Square Feet of Expiring Leases
Expiration	Boston		Maryland		San Francisco		San Diego		NY/NJ		Pennsylvania		Seattle		University/Other		Total
2008		1,097		—		152,145		63,277		11,803		66,090		63,836		—		358,248
2009		—		—		66,688		75,526		204,306		19,812		—		—		366,332
2010		347,647		—		118,992		29,541		224,577		33,089		—		—		753,846
2011		140,627		—		71,308		28,103		16,454		104,364		—		—		360,856
2012		20,608		—		188,442		45,364		140,676		12,874		—		—		407,964
2013		—		51,181		128,984		227,750		71,399		27,753		—		—		507,067
2014		28,019		—		66,002		72,863		—		374,387		—		21,500		562,771
2015		—		—		—		53,740		19,124		11,293		—		—		84,157
2016		152,520		—		100,040		—		—		71,500		51,000		228,007		603,067
2017		—		—		101,872		—		45,394		—		—		—		147,266
Thereafter		756,631		1,093,787		198,889		273,497		27,021		—		42,628		—		2,392,453
Total		1,447,149		1,144,968		1,193,362		869,661		760,754		721,162		157,464		249,507		6,544,027

27

10 LARGEST TENANTS
DECEMBER 31, 2007

Our properties were leased to 117 tenants.

									Annualized		Percent of
				Percent of					Base Rent		Annualized
		Leased		Leased Sq Ft			Annualized		per Leased		Base Rent			Lease
		Square		Total			Base Rent		Sq Ft		Current			Expiration
	Tenant	Feet		Portfolio			Current (1)		Current		Total Portfolio			Date(s)
		(In thousands)
1	Human Genome Sciences, Inc.		924,970		10.9	%	$	40,290	$	43.56		20.3	%	May 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		8.1	%		25,948		37.86		13.1	%	Multiple
3	Genzyme Corporation		343,000		4.1	%		15,457		45.06		7.8	%	July 2018
4	Centocor, Inc. (Johnson & Johnson)		374,387		4.4	%		8,387		22.40		4.2	%	March 2014
5	Schering Corporation (3)		136,067		1.6	%		7,609		55.92		3.8	%	August 2016
6	Array BioPharma Inc. (4)		228,007		2.7	%		6,801		29.83		3.4	%	Multiple
7	Nektar Therapeutics		100,040		1.2	%		4,533		45.32		2.3	%	October 2016
8	Arena Pharmaceuticals, Inc.		112,000		1.3	%		4,513		40.30		2.3	%	May 2027
9	Regeneron Pharmaceuticals, Inc. (5)		230,911		2.7	%		4,355		18.86		2.2	%	Multiple
10	Illumina, Inc.		109,270		1.3	%		4,178		38.24		2.1	%	October 2023
	Total / weighted average (6)		3,243,938		38.4	%	$	122,071	$	37.63		61.5	%

(1)	Based on current annualized base rent. Current annualized base rent is the monthly contractual rent as of the current quarter ended, or if rent has not yet commenced, the first monthly rent payment due, multiplied by 12 months.
(2)	191,904 square feet expires August 2010, 100,854 square feet expires December 2010, 20,608 square feet expires May 2012, 81,204 square feet expires September 2013, and 290,716 square feet expires April 2018.
(3)	We own 20% of the limited liability company that owns the property that this tenant occupies.
(4)	149,984 square feet expires July 2016 and 78,023 square feet expires August 2016.
(5)	203,890 square feet expires March 2009, which will be replaced with a 15-year 230,000 square foot lease at the new buildings to be constructed at the Landmark at Eastview property, and 27,021 square feet expires March 2024.
(6)	Without regard to any early lease terminations and/or renewal options.

28

SAME PROPERTY ANALYSIS
DECEMBER 31, 2007
(Dollars in thousands)

	Quarter Ended
	12/31/07			12/31/06			Percent Change
Total Same Property Portfolio (1)
Number of properties		42			42
Rentable square feet		5,632,234			5,632,234
Percent of total portfolio		66.6	%		72.6	%
Percent leased		95.2	%		93.7	%
Revenues:
Rental	$	44,630		$	43,614			2.3	%
Tenant recoveries		13,250			12,688			4.4	%
Total revenues		57,880			56,302			2.8	%
Expenses:
Rental operations		10,493			9,688			8.3	%
Real estate taxes		3,277			4,852			(32.5	%)
Total expenses		13,770			14,540			(5.3	%)
Net operating income (2)	$	44,110		$	41,762			5.6	%
Less straight line rents, fair value and incentive revenue		(4,229	)		(4,414	)		(4.2	%)
Same property net operating income — cash basis (2) (3)	$	39,881		$	37,348			6.8	%
Rental revenue — cash basis (3)	$	40,401		$	39,200			3.1	%

	12/31/07			9/30/07
Number of properties		42			39
Change in same property net operating income		5.6	%		4.0	%
Change in same property net operating income — cash basis		6.8	%		4.2	%

(1)	The same property portfolio includes properties that were stabilized or in lease up throughout the full quarter in both the current year and the prior year.
(2)	For a definition and discussion of net operating income, see page 34. For a quantitative reconciliation of net operating income to net income in accordance with GAAP, see page 13.
(3)	Represents increase in rents on a “cash-on-cash” basis.

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ACQUISITIONS
DECEMBER 31, 2007

Acquisitions since August 11, 2004:

			Rentable
	Number of		Square
	Properties		Feet (1)		Investment
					(In thousands)
2004 acquisitions		17		2,626,875	$	533,434
2005 acquisitions		23		2,121,421		715,159
2006 acquisitions		16		3,099,826		1,309,600
2007
First quarter		1		81,204		33,000
Second quarter		11		632,332		571,800
Third quarter		2		304,729		49,000
Fourth quarter		—		—		—
Total 2007		14		1,018,265		653,800
Total acquisitions since August 11, 2004		70		8,866,387	$	3,211,993

Acquisitions detail for 2007:

			Rentable				Percent
			Square				Leased at
Property	Market	Closing Date	Feet (1)		Investment		Acquisition
					(In thousands)
First Quarter 2007
Torreyana Road	San Diego	March 22, 2007		81,204	$	33,000		100.0	%
First quarter total				81,204	$	33,000		100.0	%
Second Quarter 2007
PREI joint venture (2)	Multiple	April 4, 2007		469,151	$	506,700		55.0	%
6114-6154 Nancy Ridge Drive (3)	San Diego	May 2, 2007		112,000		50,100		100.0	%
9920 Belward Campus Drive	Maryland	May 8, 2007		51,181		15,000		100.0	%
Second quarter total				632,332	$	571,800		66.6	%
Third Quarter 2007
Pacific Center Boulevard	San Diego	August 24, 2007		66,745		16,500		100.0	%
Forbes Boulevard	San Francisco	September 5, 2007		237,984		32,500		100.0	%
Third quarter total				304,729	$	49,000		100.0	%
Fourth Quarter 2007				—	$	—		—
Acquisitions total 2007				1,018,265	$	653,800		79.3	%

(1)	Rentable square feet at the time of acquisition.
(2)	Our investment was approximately $18.5 million in these limited liability companies, of which we own 20%.
(3)	Our investment includes a $12.1 million option to acquire an additional building.

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DISPOSITIONS (1)
DECEMBER 31, 2007
(Dollars in thousands)

2007 Dispositions:

							Rentable
			Disposition	Percent			Square		Gross
Property	Market	Acquisition Date	Date	Leased			Feet		Proceeds (2)
First Quarter 2007					—			—		—
Second Quarter 2007
Colorow Drive	University/Other	December 22, 2005	May 30, 2007		100.0	%		93,650	$	20,000
Third Quarter 2007
350-360 Third St. (Kendall E-1) (3)	Boston	April 4, 2007	August 2, 2007		—			25,000		15,600
Science Park at Yale (3)	University/Other	April 4, 2007	September 28, 2007		28.4	%		259,706		14,000
Fourth Quarter 2007
Holcombe Street (3)	University/Other	April 4, 2007	December 28, 2007		n/a			—		11,000
Total 2007					44.3	%		378,356	$	60,600

(1)	No dispositions occurred prior to 2007.
(2)	Excluding closing costs.
(3)	We owned 20% of the limited liability company that owned this property.

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LEASING ACTIVITY (1)
DECEMBER 31, 2007

				Current
	Leased			Annualized
	Square			Base Rent per
	Feet			Leased Sq Ft
Leased Square Feet as of September 30, 2007		6,403,351		$	30.42
Expirations		(444,633	)		24.82
Renewals, amendments, and extensions		391,854			26.13
New leases		205,011			21.25
Terminations		(11,556	)		22.84
Leased Square Feet as of December 31, 2007		6,544,027		$	30.31
Pre-leased Square Feet as of September 30, 2007		953,267		$	56.66
Current period pre-leasing (2)		83,770			37.39
Pre-leased Square Feet as of December 31, 2007		1,037,037		$	55.11
Gross Leasing Activity — Fourth Quarter 2007		680,635		$	26.05

(1)	Leasing activity for leases signed during the periods presented, which may be different than the period of actual occupancy.
(2)	Includes 31,162 square feet that is currently leased by other tenants and will commence upon expiration of the current leases, and 52,608 square feet that is currently being developed and not included in our rentable square feet.

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TENANT IMPROVEMENTS AND LEASING COMMISSIONS
DECEMBER 31, 2007

	Three Months Ended
	12/31/07		9/30/07		6/30/07		3/31/07		12/31/06
Renewals, Amendments, and Extensions (1)
Number of renewals		4		3		2		4		5
Square feet		391,854		143,993		88,928		214,033		233,344
Tenant improvement costs per square foot (2)	$	0.51	$	1.22	$	—	$	0.64	$	2.89
Leasing commission costs per square foot (2)		0.52		0.38		—		5.92		—
Total tenant improvement and leasing commission costs psf	$	1.04	$	1.60	$	—	$	6.56	$	2.89
New Leases (3)
Number of leases		14		13		5		8		9
Square feet		288,781		146,063		122,800		103,605		303,240
Tenant improvement costs per square foot (2)	$	59.08	$	32.13	$	58.87	$	38.48	$	93.19
Leasing commission costs per square foot (2)		7.78		4.34		14.26		16.81		11.59
Total tenant improvement and leasing commission costs psf	$	66.86	$	36.48	$	73.13	$	55.29	$	104.78
Total (4)
Number of renewals/leases		18		16		7		12		14
Square feet		680,635		290,056		211,728		317,638		536,584
Tenant improvement costs per square foot (2)	$	25.36	$	16.78	$	34.14	$	12.98	$	53.92
Leasing commission costs per square foot (2)		3.60		2.38		8.27		9.47		6.55
Total tenant improvement and leasing commission costs psf	$	28.96	$	19.16	$	42.41	$	22.46	$	60.47

(1)	Does not include retained tenants that have relocated to new space or expanded into new space.
(2)	Assumes all tenant improvements and leasing commissions are paid in the calendar year in which the lease commences, which may be different than the year in which they are actually paid.
(3)	Includes pre-leasing activity and retained tenants that have relocated to new space or expanded into new space within our portfolio.
(4)	We have acquired several properties in the past which may make a period-over-period comparison less meaningful. For a list of acquisition dates, see pages 21, 22 and 25.

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NON-GAAP FINANCIAL MEASURE DEFINITIONS
DECEMBER 31, 2007

This document includes certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described below. Our definition and calculation of non-GAAP financial measures may differ from those of other REITs, and therefore, may not be comparable. The non-GAAP measures should not be considered an alternative to net income as an indicator of our performance and should be considered only a supplement to cash flows from operating, investing or financing activities as a measure of liquidity, computed in accordance with GAAP.

Funds from Operations (FFO)

We present funds from operations, or FFO, because we consider it an important supplemental measure of our operating performance and believe it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides an operating performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, in its March 1995 White Paper (as amended in November 1999 and April 2002). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. Our computation may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

Adjusted Funds from Operations (AFFO)

We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs. We calculate AFFO by adding to FFO: (a) amounts received pursuant to master lease agreements on certain properties, which are not included in rental income for GAAP purposes, and (b) non-cash operating revenues and expenses. Other equity REITs may not calculate AFFO in a consistent manner. Accordingly, our AFFO may not be comparable to other equity REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our operations.

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. We calculate adjusted EBITDA by adding to EBITDA: (a) minority interests in our operating partnership and (b) dividends payable on our series A preferred stock. Management uses EBITDA and adjusted EBITDA as indicators of our ability to incur and service debt. In addition, we consider EBITDA and adjusted EBITDA to be appropriate supplemental measures of our performance because they eliminate depreciation and interest, which permits investors to view income from operations without the impact of non-cash depreciation or the cost of debt. However, because EBITDA and adjusted EBITDA are calculated before recurring cash charges including interest expense and taxes, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility is limited.

Coverage Ratios

We present interest and fixed charge ratios as supplemental liquidity measures. Management uses these ratios as indicators of our financial flexibility to service current interest expense and debt amortization from current cash net operating income. In addition, we believe that these coverage ratios represent common metrics used by securities analysts, investors and other interested parties to evaluate our ability to service fixed cash payments. However, because these ratios are derived from adjusted EBITDA, their utility is limited by the same factors that limit the usefulness of adjusted EBITDA as a liquidity measure.

Net Operating Income (NOI)

We use net operating income, or NOI, as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. We compute NOI by adding or subtracting certain items from net income, minority interest in the operating partnership, gains/losses from investment in unconsolidated partnerships, interest expense, interest income, depreciation and amortization, and general and administrative expenses. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

34

PROPERTY DEFINITIONS
DECEMBER 31, 2007

Property Status

Stabilized

Represents operating properties that are more than 90% leased

Lease up

Represents operating properties that are less than 90% leased

Repositioning and redevelopment, or Rep / Redev

Represents properties that we are currently preparing for their intended use, and accordingly are capitalizing interest and other costs as of the end of the quarter

Construction in progress, or CIP

Represents properties that we are currently developing through ground up construction

Land parcels, or Land

Represents estimates of the additional rentable square footage that we could put into service if management made the strategic election to pursue additional development

35