Biomed Realty Trust 8-K Biomed Realty Trust Reports Fourth Quarter and Full-year 2011

Exhibit 99.2

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

DECEMBER 31, 2011

BioMed Realty Trust, Inc.	Corporate Communications Contact	www.biomedrealty.com
17190 Bernardo Center Drive	Rick Howe	(858) 485-9840 phone
San Diego, CA 92128	Senior Director, Corporate Communications	(858) 485-9843 fax
	richard.howe@biomedrealty.com

TABLE OF CONTENTS

DECEMBER 31, 2011

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

This Supplemental Operating and Financial Data package contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, without limitation: general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, dependence on tenants’ financial condition, and 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; reductions in asset valuations and related impairment charges; risks associated with the availability and terms of financing, the use of debt to fund acquisitions and developments, and the ability to refinance indebtedness as it comes due; failure to maintain the company’s investment grade credit ratings with the ratings agencies; failure to manage effectively the company’s growth and expansion into new markets, or to complete or integrate acquisitions and developments successfully; risks and uncertainties affecting property development and construction; risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; potential liability for uninsured losses and environmental contamination; risks associated with the company’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended, and possible adverse changes in tax and environmental laws; and risks associated with the company’s dependence on key personnel whose continued service is not guaranteed. For a further list and description of such risks and uncertainties, see the reports filed by the company 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

FOURTH QUARTER HIGHLIGHTS

DECEMBER 31, 2011

• Generated total revenues for the quarter of $112.4 million, up 7.0% from $105.0 million in the same period in 2010. Rental revenues for the quarter increased by 7.6% to $85.1 million from $79.2 million in the same period in 2010, the highest in the company’s history for the eighth consecutive quarter.

• Executed 21 leasing transactions representing approximately 253,900 square feet:

• 14 new leases totaling approximately 141,100 square feet.

• Seven lease renewals totaling approximately 112,800 square feet.

• The current operating portfolio was approximately 90.2% leased at quarter end, on a weighted-average basis.

• Increased consolidated net operating income on a cash basis for the quarter by 7.6%, to $75.4 million from $70.1 million in the same period in 2010. For the fourth quarter of 2011, the company’s operating margin increased to 71.2%, and its operating expense recovery percentage of 81.8% marks the highest performance since the third quarter of 2008.

• Increased the consolidated portfolio leased percentage by 70 basis points as compared to the third quarter of 2011, driven by an increase of 140 basis points for the company’s properties in Boston.

• Completed a follow-on public offering of common stock, raising approximately $399.6 million in net proceeds.

• Acquired Prudential Real Estate Investors’ (PREI) 80% interest in the Rogers Street properties in Cambridge, Massachusetts for $308.0 million, which are now fully unencumbered and 100% owned by the company and comprising approximately 602,000 square feet of laboratory and office space.

• Increased funds from operations (FFO) for the quarter to $46.9 million ($0.30 per diluted share), as compared to $43.6 million ($0.30 per diluted share) in the fourth quarter of 2010.

• Increased adjusted funds from operations (AFFO) for the quarter to $43.9 million ($0.28 per diluted share), as compared to $40.6 million ($0.28 per diluted share) in the fourth quarter of 2010.

• Reported net income available to stockholders for the quarter of $12.1 million ($0.08 per diluted share), as compared to $8.5 million ($0.06 per diluted share) for the same period in 2010.

About BioMed Realty Trust,Inc.

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 owns or has interests in properties comprising approximately 12.4 million rentable square feet. The company’s properties are located predominantly in the major U.S. life science markets of Boston, San Francisco, San Diego, Maryland, New York/New Jersey, Pennsylvania and Seattle, which have well-established reputations as centers for scientific research. Additional information is available atwww.biomedrealty.com.

INVESTOR INFORMATION

DECEMBER 31, 2011

Company Information
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 BMR PrA	BNY Mellon Shareowner Services 480 Washington Boulevard Jersey City, NJ 07310-1900 (877) 296-3711	NewYork Stock Exchange
Please visit our corporate website at:	www.biomedrealty.com
Board of Directors	Senior Management
Alan D. Gold Chairman Barbara R. Cambon Edward A. Dennis, Ph.D. Richard I. Gilchrist Gary A. Kreitzer Theodore D. Roth M. Faye Wilson	Alan D. Gold Chairman and Chief Executive Officer R. Kent Griffin, Jr. President and Chief Operating Officer Gary A. Kreitzer Executive Vice President,     General Counsel and Director Matthew G. McDevitt Executive Vice President,     Real Estate Greg N. Lubushkin Chief Financial Officer	Karen A. Sztraicher Senior Vice President,     Asset Management John P. Bonanno Senior Vice President,     Leasing & Development Jonathan P. Klassen Vice President,     Assistant General Counsel and Secretary Kevin M. Simonsen Vice President,     Real Estate Counsel	Bruce D. Steel Managing Director,     BioMed Ventures Stephen A. Willey Vice President,     Chief Accounting Officer Janice L. Kameir Vice President,     Human Resources Robert M. Sistek Vice President,     Finance
Tentative Schedule for Quarterly Results
First Quarter 2012	May 2, 2012
Second Quarter 2012	August 1, 2012
Third Quarter 2012	October 31, 2012
Fourth Quarter 2012	February 13, 2013

EQUITY RESEARCH COVERAGE

DECEMBER 31, 2011

BMO Capital Markets	Richard C. Anderson / Mark Lutenski	(212) 885-4180 / (212) 885-4197	richard.anderson@bmo.com / mark.lutenski@bmo.com
Cantor Fitzgerald	Sri Nagarajan / Evan Smith	(212) 915-1223 / (212) 915-1220	snagarajan@cantor.com / evan.smith@cantor.com
Cowen and Company	James Sullivan / Michael Gorman	(646) 562-1380 / (646) 562-1381	james.sullivan@cowen.com / michael.gorman@cowen.com
Credit Suisse	Andrew Rosivach	(415) 249-7942	andrew.rosivach@credit-suisse.com
Green Street Advisors	John Stewart / John Hornbeak	(949) 640-8780	jstewart@greenst.com / jhornbeak@greenst.com
Jefferies & Co.	Omotayo Okusanya	(212) 336-7076	tokusanya@jefferies.com
KeyBanc Capital Markets	Jordan Sadler / Craig Mailman	(917) 368-2280 / (917) 368-2316	jsadler@keybanccm.com / cmailman@keybanccm.com
Macquarie Capital (USA)	Rob Stevenson / Nicholas Yulico	(212) 231-8068 / (212) 231-8028	rob.stevenson@macquarie.com / nicholas.yulico@macquarie.com
Morgan Stanley	Paul Morgan / Chris Caton	(415) 576-2627 / (415) 576-2637	paul.b.morgan@morganstanley.com / chris.caton@morganstanley.com
Raymond James	Paul D. Puryear / William A. Crow	(727) 567-2253 / (727) 567-5294	paul.puryear@raymondjames.com / bill.crow@raymondjames.com
RBC Capital Markets	David Rodgers / Mike Carroll	(440) 715-2647 / (440) 715-2649	dave.rodgers@rbccm.com / michael.carroll@rbccm.com
Robert W. Baird & Co.	David Aubuchon / Justin Webb	(314) 445-6520 / (973) 795-1255	daubuchon@rwbaird.com / jpelham-webb@rwbaird.com
Stifel, Nicolaus & Company, Inc.	John W. Guinee / Erin Aslakson	(443) 224-1307 / (443) 224-1350	jwguinee@stifel.com / aslaksone@stifel.com
UBS Securities	Ross T. Nussbaum	(212) 713-4760	ross.nussbaum@ubs.com
Wells Fargo Securities	Brendan Maiorana / Young Ku	(443) 263-6516 / (443) 263-6564	brendan.maiorana@wachovia.com / young.ku@wachovia.com

FINANCIAL AND OPERATING HIGHLIGHTS

DECEMBER 31, 2011

(In thousands, except per share and ratio amounts)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Selected Operating Data
Total revenues	$	112,370		$	114,986		$	106,798		$	105,545		$	105,036
EBITDA (1)		71,980			65,530			64,362			62,122			63,445
Adjusted EBITDA (1)		71,702			73,504			69,496			66,470			67,864
Net operating income - cash basis (2)		75,391			72,628			71,944			72,383			70,091
General and administrative expense		9,169			7,682			6,694			7,421			6,379
Acquisition related expenses		309			136			334			320			665
Interest expense, net		21,725			22,887			23,378			21,191			21,480
Capitalized interest		2,260			1,996			1,817			1,494			1,305
Operating margin (3)		71.2	%		69.2	%		70.4	%		70.2	%		70.1	%
General and administrative expense / Total revenues		8.2	%		6.7	%		6.3	%		7.0	%		6.1	%
Net income available to common stockholders		12,058			4,765			3,638			5,530			8,521
Net income per share - diluted	$	0.08		$	0.03		$	0.03		$	0.04		$	0.06
FFO - diluted (4)		46,880			43,778			42,114			42,073			43,581
FFO per share - diluted (4)	$	0.30		$	0.30		$	0.29		$	0.29		$	0.30
AFFO - diluted (4)		43,938			42,547			38,277			42,977			40,609
AFFO per share - diluted (4)	$	0.28		$	0.29		$	0.27		$	0.30		$	0.28
Dividend per share - common stock	$	0.20		$	0.20		$	0.20		$	0.20		$	0.17
FFO payout ratio (5)		66.7	%		66.7	%		69.0	%		69.0	%		56.7	%
AFFO payout ratio (5)		71.4	%		69.0	%		74.1	%		66.7	%		60.7	%

(1) For definitions and discussion of EBITDA and adjusted EBITDA, see page 32. For a quantitative reconciliation of the differences between adjusted EBITDA, EBITDA and net income available to common stockholders, see page 13.

(2) For definitions and discussion of net operating income - cash basis, see page 14.

(3) See page 14 for detail.

(4) For definitions and discussion of FFO and AFFO, see page 32. For a quantitative reconciliation of the differences between FFO, AFFO and net income available to common stockholders, see pages 11 and 12.

(5) See page 11 for detail of the FFO payout ratio and page 12 for detail of the AFFO payout ratio.

CAPITALIZATION SUMMARY

DECEMBER 31, 2011

(In thousands, except per share and ratio amounts)

		12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Capitalization:
Total common shares outstanding			154,101			131,265			131,260			131,240			131,047
Total units outstanding (1)			2,980			2,980			2,980			2,989			3,001
Total common shares and units outstanding			157,081			134,245			134,240			134,229			134,048
Common share price at quarter end		$	18.08		$	16.57		$	19.24		$	19.02		$	18.65
Equity value at quarter end		$	2,840,033		$	2,224,441		$	2,582,770		$	2,553,027		$	2,499,990
Preferred stock at liquidation value			198,000			198,000			230,000			230,000			230,000
Consolidated debt			1,682,578			1,665,661			1,590,049			1,525,825			1,494,567
Total capitalization		$	4,720,611		$	4,088,102		$	4,402,819		$	4,308,852		$	4,224,557
Debt / Total assets			38.0	%		41.3	%		39.8	%		38.5	%		37.7	%
Debt / Total gross assets			34.5	%		37.4	%		36.2	%		35.3	%		34.7	%
Debt / Total capitalization			35.6	%		40.7	%		36.1	%		35.4	%		35.4	%
Coverage ratios (2):
Debt / Adjusted EBITDA			5.9			5.7			5.7			5.7			5.5
Interest coverage			3.6			3.5			3.3			3.4			3.5
Fixed charge coverage			2.8			2.8			2.5			2.6			2.7
Total consolidated debt:
Secured debt / Total assets			13.3	%		15.0	%		15.6	%		15.9	%		16.6	%
Floating rate debt / Total debt			15.9	%		13.0	%		7.6	%		3.3	%		26.3	%
Unencumbered real estate / Total real estate			73.7	%		69.9	%		69.0	%		68.1	%		66.7	%
Unencumbered CABR / Total CABR (3)			73.0	%		71.4	%		70.5	%		69.4	%		68.7	%
Unsecured line of credit capacity		$	481,090		$	526,100		$	591,000		$	661,200		$	319,750
Bond covenants (4):	Requirements
Total outstanding debt / Total assets	Must be < 60%		35.7	%		38.5	%		37.4	%		36.5	%		36.1	%
Secured debt / Total assets	Must be < 40%		12.5	%		13.9	%		14.6	%		15.0	%		15.8	%
Consolidated income available for debt service / Annual debt service charge	Must be > 1.5X		3.1			2.9			2.8			2.7			3.1
Unencumbered assets / Unsecured debt - Notes due 2020	Must be > 150%		323	%		293	%		312	%		327	%		339	%
Unencumbered assets / Unsecured debt - Notes due 2016	Must be > 150%		320	%		287	%		307	%		321	%		—

(1) Includes both operating partnership (OP) and long term incentive plan (LTIP) units outstanding.

(2) For discussion of coverage ratios, see page 32. See page 16 for the calculation of interest and fixed charge coverage ratios. See page 13 for calculation of Adjusted EBITDA.

(3) For discussion of current annualized base rent (CABR), see page 20.

(4) Calculated in accordance with the covenants contained in the indenture that governs the terms of the Company’s unsecured senior notes due 2020 and supplemental and base indentures that govern the terms of the Company’s unsecured senior notes due 2016, which are included as exhibits to the Company’s Forms 8 - K filed with the SEC on April 30, 2010 and March 31, 2011, respectively. The covenants for the unsecured senior notes due 2020 and unsecured senior notes due 2016 are identical, except that the unencumbered total asset value definition for the unsecured senior notes due 2020 includes investments in unconsolidated partnerships accounted for under the equity method of accounting, whereas the unencumbered total asset value definition for the unsecured senior notes due 2016 excludes such investments in unconsolidated partnerships.

PORTFOLIO SUMMARY

DECEMBER 31, 2011

	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased %  (1)
	(In thousands)
Stabilized (2)	$	2,894,818		97		7,026,962		99.3	%
Lease up (2)		954,149		34		3,234,394		62.6	%
Current operating portfolio		3,848,967		131		10,261,356		90.2	%
Long-term lease up (3)		314,196		10		1,389,517		50.4	%
Total operating portfolio	$	4,163,163		141		11,650,873		87.2	%

	Gross Book Value		Buildings		Rentable Square Feet		Weighted Average Leased % (1)
	(In thousands)
Redevelopment (4)	$	59,442		9		357,817		54.1	%
Unconsolidated partnership portfolio (5)		33,389		3		352,863		20.6	%
Development potential (4)		180,116		—		3,667,000		—
Total portfolio	$	4,436,110		153		16,028,553

(1) Calculated based on gross book value for each asset multiplied by the percentage leased.

(2) See pages 21-22 for detail of consolidated portfolio and page 33 for definitions of terms.

(3) Includes Pacific Research Center properties comprising Pacific Industrial Center, Pacific Research Center North and Pacific Research Center South.

(4) See page 23 for detail of the consolidated portfolio and page 33 for definitions of terms.

(5) See page 24 for detail of the unconsolidated partnership portfolio.

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2011

(In thousands)

	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Assets
Investments in real estate, net	$	3,950,246		$	3,576,304		$	3,584,259		$	3,538,560		$	3,536,114
Investments in unconsolidated partnerships		33,389			67,383			55,313			56,287			57,265
Cash and cash equivalents		16,411			16,351			12,033			19,351			21,467
Accounts receivable, net		5,141			7,542			2,486			7,358			5,874
Accrued straight-line rents, net		130,582			123,564			116,896			110,981			106,905
Deferred leasing costs, net		157,255			116,811			123,299			121,658			125,060
Other assets		135,521			121,074			98,564			104,885			107,069
Total assets	$	4,428,545		$	4,029,029		$	3,992,850		$	3,959,080		$	3,959,754
Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	587,844		$	603,406		$	623,121		$	629,640		$	657,922
Exchangeable senior notes, net		180,000			199,800			199,706			199,613			199,522
Unsecured senior notes, net		645,581			645,412			645,246			645,081			247,571
Unsecured line of credit		268,000			216,100			121,200			51,000			392,450
Accounts payable, accrued expenses and other liabilities		134,924			136,408			129,715			140,583			149,393
Total liabilities		1,816,349			1,801,126			1,718,988			1,665,917			1,646,858
Equity:
Stockholders’ equity:
Preferred stock		191,469			191,469			222,413			222,413			222,413
Common stock		1,541			1,313			1,313			1,312			1,310
Additional paid-in capital		2,773,994			2,373,652			2,371,762			2,369,922			2,371,488
Accumulated other comprehensive loss		(60,138	)		(61,912	)		(66,880	)		(68,908	)		(70,857	)
Dividends in excess of earnings		(304,759	)		(285,996	)		(264,507	)		(241,894	)		(221,176	)
Total stockholders’ equity		2,602,107			2,218,526			2,264,101			2,282,845			2,303,178
Noncontrolling interests		10,089			9,377			9,761			10,318			9,718
Total equity		2,612,196			2,227,903			2,273,862			2,293,163			2,312,896
Total liabilities and equity	$	4,428,545		$	4,029,029		$	3,992,850		$	3,959,080		$	3,959,754

CONSOLIDATED STATEMENTS OF INCOME

DECEMBER 31, 2011

(In thousands, except share and per share data)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Revenues:
Rental	$	85,138		$	83,825		$	81,436		$	80,217		$	79,157
Tenant recoveries		26,226			26,674			24,821			24,581			23,580
Other revenue		1,006			4,487			541			747			2,299
Total revenues		112,370			114,986			106,798			105,545			105,036
Expenses:
Rental operations		32,056			34,055			31,500			31,198			30,680
Depreciation and amortization		36,762			36,295			35,788			33,835			32,196
General and administrative		9,169			7,682			6,694			7,421			6,379
Acquisition related expenses		309			136			334			320			665
Total expenses		78,296			78,168			74,316			72,774			69,920
Income from operations		34,074			36,818			32,482			32,771			35,116
Equity in net loss of unconsolidated partnerships		(640	)		(735	)		(466	)		(648	)		(958	)
Interest expense, net		(21,725	)		(22,887	)		(23,378	)		(21,191	)		(21,480	)
Other income/(expense)		4,244			(4,259	)		(691	)		(1,054	)		262
Net income		15,953			8,937			7,947			9,878			12,940
Net income attributable to noncontrolling interests		(244	)		(106	)		(68	)		(107	)		(178	)
Net income attributable to the Company		15,709			8,831			7,879			9,771			12,762
Preferred stock dividends		(3,651	)		(3,901	)		(4,241	)		(4,241	)		(4,241	)
Cost on redemption of preferred stock		—			(165	)		—			—			—
Net income available to common stockholders	$	12,058		$	4,765		$	3,638		$	5,530		$	8,521
Net income per share available to common stockholders:
Basic and diluted earnings per share	$	0.08		$	0.03		$	0.03		$	0.04		$	0.06
Weighted-average common shares outstanding:
Basic		140,909,345			129,872,349			129,858,098			129,771,733			129,599,798
Diluted		143,889,324			132,852,328			132,840,932			132,764,842			132,601,048

FFO (1)

DECEMBER 31, 2011

(In thousands, except share, per share and ratio amounts)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Reconciliation of net income available to common stockholders to funds from operations (FFO):
Net income available to common stockholders	$	12,058		$	4,765		$	3,638		$	5,530		$	8,521
Adjustments:
Gain on revaluation of acquired unconsolidated partnerships		(4,679	)		—			—			—			—
Noncontrolling interests in operating partnership		252			111			82			125			188
Depreciation & amortization - unconsolidated partnerships		826			945			944			921			1,014
Depreciation & amortization - consolidated entities		36,762			36,295			35,788			33,835			32,196
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(27	)		(26	)		(26	)		(26	)		(26	)
FFO - basic	$	45,192		$	42,090		$	40,426		$	40,385		$	41,893
Interest expense - exchangeable senior notes due 2030 (2)		1,688			1,688			1,688			1,688			1,688
FFO - diluted	$	46,880		$	43,778		$	42,114		$	42,073		$	43,581
FFO per share - basic	$	0.31		$	0.31		$	0.30		$	0.30		$	0.31
FFO per share - diluted (2)	$	0.30		$	0.30		$	0.29		$	0.29		$	0.30
Dividends and distributions declared per common share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.17
FFO payout ratio		66.7	%		66.7	%		69.0	%		69.0	%		56.7	%
Weighted - average common shares and units outstanding diluted (3)		145,350,296			134,242,201			134,236,306			134,253,266			133,905,635
Dilutive effect of exchangeable senior notes due 2030 (2)		10,017,858			10,017,858			10,017,858			9,914,076			9,914,076
Weighted - average common shares and units outstanding diluted - FFO		155,368,154			144,260,059			144,254,164			144,167,342			143,819,711

(1) For definitions and discussion of FFO see page 32.

(2) The calculation of FFO per share diluted includes the assumed issuance of common stock pursuant to the exchange provision of the exchangeable senior notes due 2030, which is dilutive based on the “if converted” method for all periods presented since the original issuance in January 2010. Under the if converted method, if the add back of interest charges relating to the exchangeable senior notes due 2030 divided by the corresponding number of common shares issuable upon exchange is dilutive, the potentially issuable shares are included in the calculation of FFO per diluted share.

(3) The three months ended December 31, 2011, September 30, 2011, June 30, 2011, March 31, 2011, and December 31, 2010 include 1,460,972, 1,389,873, 1,395,374, 1,488,424, and 1,304,587 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

AFFO (1)

DECEMBER 31, 2011

(In thousands, except per share and ratio amounts)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Reconciliation of FFO to adjusted funds from operations (AFFO):
FFO - diluted	$	46,880		$	43,778		$	42,114		$	42,073		$	43,581
Adjustments:
Recurring capital expenditures and tenant improvements (2)		(3,201	)		(4,114	)		(4,520	)		(2,045	)		(2,867	)
Leasing commissions		(1,192	)		(1,096	)		(1,140	)		(889	)		(887	)
(Gain)/loss on extinguishment of debt		(51	)		170			(112	)		(398	)		(81	)
(Gain)/loss on derivative instruments		(20	)		(64	)		(383	)		1,011			(181	)
Non-cash adjustment for marketable securities		506			3,802			825			—			—
Amortization of deferred interest costs		1,748			1,754			1,760			1,765			1,771
Amortization of deferred loan costs		1,019			1,125			1,153			1,058			1,080
Amortization of fair-value of debt acquired		(327	)		(428	)		(427	)		(497	)		(522	)
Amortization of debt discounts		170			260			259			141			137
Amortization of lease incentives		599			577			553			518			587
Depreciation included in general and administrative expense		387			435			392			386			376
Non-cash equity compensation		2,029			1,898			1,785			1,871			1,673
Cost on redemption of preferred stock		—			165			—			—			—
Straight line rents		(6,701	)		(7,633	)		(5,948	)		(4,159	)		(5,629	)
Share of unconsolidated partnership adjustments (3)		(10	)		(58	)		(9	)		42			146
Fair-value lease revenue		2,102			1,976			1,975			2,100			1,425
AFFO - diluted	$	43,938		$	42,547		$	38,277		$	42,977		$	40,609
AFFO per share - diluted	$	0.28		$	0.29		$	0.27		$	0.30		$	0.28
Dividends and distributions declared per common share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.17
AFFO payout ratio		71.4	%		69.0	%		74.1	%		66.7	%		60.7	%

(1) For definitions and discussion of AFFO see page 32.

(2) Excludes value-enhancing / first generation capital expenditures and tenant improvements.

(3) Share of unconsolidated partnership adjustments includes the Company’s share of amortization of deferred loan costs, lease incentives, straight line rents, and fair-value lease revenue.

RECONCILIATION OF EBITDA (1)

DECEMBER 31, 2011

(In thousands)

	Three Months Ended
	12/31/11			9/30/11		6/30/11		3/31/11		12/31/10
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA):
Net income available to common stockholders	$	12,058		$	4,765	$	3,638	$	5,530	$	8,521
Interest expense, net		21,725			22,887		23,378		21,191		21,480
Interest expense - unconsolidated partnerships		609			638		614		645		234
Depreciation & amortization - consolidated entities		36,762			36,295		35,788		33,835		32,196
Depreciation & amortization - unconsolidated partnerships		826			945		944		921		1,014
EBITDA		71,980			65,530		64,362		62,122		63,445
Noncontrolling interests		244			106		68		107		178
Preferred dividends		3,651			3,901		4,241		4,241		4,241
Cost on redemption of preferred stock		—			165		—		—		—
Non-cash adjustment for marketable securities		506			3,802		825		—		—
Gain on revaluation of acquired unconsolidated partnerships		(4,679	)		—		—		—		—
Adjusted EBITDA	$	71,702		$	73,504	$	69,496	$	66,470	$	67,864

(1) For definitions and discussion of EBITDA and Adjusted EBITDA, see page 32.

RECONCILIATION OF NET OPERATING INCOME (1)

DECEMBER 31, 2011

(In thousands, except ratio amounts)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Net income	$	15,953		$	8,937		$	7,947		$	9,878		$	12,940
Equity in net loss of unconsolidated partnerships		640			735			466			648			958
Interest expense, net		21,725			22,887			23,378			21,191			21,480
Other (income)/expense		(4,244	)		4,259			691			1,054			(262	)
Income from operations		34,074			36,818			32,482			32,771			35,116
Depreciation and amortization		36,762			36,295			35,788			33,835			32,196
General and administrative		9,169			7,682			6,694			7,421			6,379
Acquisition related expenses		309			136			334			320			665
Consolidated net operating income	$	80,314		$	80,931		$	75,298		$	74,347		$	74,356
Revenues:
Rental	$	85,138		$	83,825		$	81,436		$	80,217		$	79,157
Tenant recoveries		26,226			26,674			24,821			24,581			23,580
Other revenue (2)		1,006			4,487			541			747			2,299
Total revenues		112,370			114,986			106,798			105,545			105,036
Expenses:
Rental operations		32,056			34,055			31,500			31,198			30,680
Consolidated net operating income	$	80,314		$	80,931		$	75,298		$	74,347		$	74,356
Consolidated net operating income - cash basis (3)	$	75,391		$	72,628		$	71,944		$	72,383		$	70,091
Operating margin (4)		71.2	%		69.2	%		70.4	%		70.2	%		70.1	%
Operating expense recovery (5)		81.8	%		78.3	%		78.8	%		78.8	%		76.9	%

(1) For a definition and discussion of net operating income, see page 32.

(2) Includes lease termination income.

(3) Consolidated net operating income - cash basis is calculated as (consolidated net operating income - straight line rents - fair value lease revenue - lease incentive revenue - bad debt expense - other revenue).

(4) Operating margin is calculated as ((rental revenues + tenant recovery revenues - rental operations) / (rental revenues + tenant recovery revenues)).

(5) Operating expense recovery is calculated as (tenant recovery revenues / rental operations).

INTEREST EXPENSE

DECEMBER 31, 2011

(In thousands)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Mortgage notes payable	$	10,520		$	10,776		$	11,130		$	11,377		$	11,829
Exchangeable senior notes		1,698			1,910			1,910			1,911			1,911
Unsecured senior notes		7,678			7,678			7,635			3,914			3,827
Unsecured line of credit		1,479			1,364			479			1,371			1,055
Derivative instruments		—			444			1,296			1,645			1,697
Interest expense, net - cash basis	$	21,375		$	22,172		$	22,450		$	20,218		$	20,319
Non cash interest expense
Amortization of fair-value of debt acquired		(327	)		(428	)		(427	)		(497	)		(522	)
Amortization of debt discounts		170			260			259			141			137
Amortization of deferred loan costs		1,019			1,125			1,153			1,058			1,080
Amortization of deferred interest costs		1,748			1,754			1,760			1,765			1,771
Capitalized interest		(2,260	)		(1,996	)		(1,817	)		(1,494	)		(1,305	)
Interest expense, net	$	21,725		$	22,887		$	23,378		$	21,191		$	21,480

COVERAGE RATIOS (1)

DECEMBER 31, 2011

(In thousands, except ratio amounts)

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Interest coverage ratio
Adjusted EBITDA	$	71,702		$	73,504		$	69,496		$	66,470		$	67,864
Interest expense:
Interest expense, net		21,725			22,887			23,378			21,191			21,480
Interest expense - unconsolidated partnerships		609			638			614			645			234
Amortization of deferred interest costs		(1,748	)		(1,754	)		(1,760	)		(1,765	)		(1,771	)
Amortization of deferred loan costs		(1,019	)		(1,125	)		(1,153	)		(1,058	)		(1,080	)
Amortization of debt discounts		(170	)		(260	)		(259	)		(141	)		(137	)
Amortization of fair-value of debt acquired		327			428			427			497			522
Total interest expense	$	19,724		$	20,814		$	21,247		$	19,369		$	19,248
Interest coverage ratio		3.6			3.5			3.3			3.4			3.5
Fixed charge coverage ratio
Adjusted EBITDA	$	71,702		$	73,504		$	69,496		$	66,470		$	67,864
Fixed charges:
Interest expense, net		21,725			22,887			23,378			21,191			21,480
Interest expense - unconsolidated partnerships		609			638			614			645			234
Amortization of deferred interest costs		(1,748	)		(1,754	)		(1,760	)		(1,765	)		(1,771	)
Amortization of deferred loan costs		(1,019	)		(1,125	)		(1,153	)		(1,058	)		(1,080	)
Amortization of debt discounts		(170	)		(260	)		(259	)		(141	)		(137	)
Amortization of fair-value of debt acquired		327			428			427			497			522
Principal payments		2,141			1,758			1,771			1,825			1,912
Preferred dividends		3,651			3,901			4,241			4,241			4,241
Total fixed charges	$	25,516		$	26,473		$	27,259		$	25,435		$	25,401
Fixed charge coverage ratio		2.8			2.8			2.5			2.6			2.7

(1) For a discussion of coverage ratios, see page 32.

DEBT SUMMARY

DECEMBER 31, 2011

(Dollars in thousands)

	Stated Rate			Effective Rate			Principal Balance		Unamortized Premium / (Discount)			Carrying Value		Maturity Date
Consolidated Debt:
Fixed Rate Mortgages:
Center for Life Science | Boston		7.75	%		7.75	%	$	342,149	$	—		$	342,149		06/14
500 Kendall Street (Kendall D)		6.38	%		5.45	%		62,261		2,864			65,125		12/18
6828 Nancy Ridge Drive		7.15	%		5.38	%		6,373		87			6,460		09/12
Shady Grove Road		5.97	%		5.97	%		146,581		—			146,581		09/16
Sidney Street		7.23	%		5.11	%		26,400		273			26,673		06/12
900 Uniqema Boulevard		8.61	%		5.61	%		814		42			856		05/15
Total / Weighted Average on Fixed Rate Mortgages		7.13	%		6.91	%		584,578		3,266			587,844
Fixed Rate Debt:
Unsecured Exchangeable Senior Notes Due 2030		3.75	%		3.75	%		180,000		—			180,000		01/30
Unsecured Senior Notes Due 2016		3.85	%		3.99	%		400,000		(2,190	)		397,810		04/16
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(2,229	)		247,771		04/20
Subtotal / Weighted Average on Unsecured Senior Notes		4.73	%		4.87	%		650,000		(4,419	)		645,581
Total / Weighted Average on Fixed Rate Debt		5.60	%		5.57	%		1,414,578		(1,153	)		1,413,425
Variable Rate Debt:
Unsecured Line of Credit		1.83	%		1.83	%		268,000		—			268,000		07/15
Total / Weighted Average on Variable Rate Debt		1.83	%		1.83	%		268,000		—			268,000
Total / Weighted Average on Unsecured Debt		3.86	%		3.94	%		1,098,000		(4,419	)		1,093,581
Total / Weighted Average on Consolidated Debt		5.00	%		4.97	%	$	1,682,578	$	(1,153	)	$	1,681,425
Share of Unconsolidated Partnership Debt:
PREI Secured Construction Loan (20%) (variable)		3.28	%		3.28	%		27,795		—			27,795		08/13
Total / Weighted Average on Share of Unconsolidated Partnership Debt		3.28	%		3.28	%		27,795		—			27,795
Total / Weighted Average on Consolidated and Share of Unconsolidated Partnership Debt		4.97	%		4.95	%	$	1,710,373	$	(1,153	)	$	1,709,220

DEBT MATURITIES

DECEMBER 31, 2011

(In thousands)

Weighted average debt maturity is 5.9 years for consolidated debt.

	2012		2013		2014		2015		2016		Thereafter		Total
Consolidated debt:
Fixed rate debt:
Fixed rate mortgages	$	40,479	$	8,291	$	339,020	$	6,253	$	143,426	$	47,109	$	584,578
Unsecured exchangeable senior notes due 2030 (1)		—		—		—		—		—		180,000		180,000
Unsecured senior notes due 2016		—		—		—		—		400,000		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		250,000
Total fixed rate debt		40,479		8,291		339,020		6,253		543,426		477,109		1,414,578
Variable rate debt:
Unsecured line of credit		—		—		—		268,000		—		—		268,000
Total variable rate debt		—		—		—		268,000		—		—		268,000
Total consolidated debt	$	40,479	$	8,291	$	339,020	$	274,253	$	543,426	$	477,109	$	1,682,578
Share of unconsolidated partnership debt:
PREI secured construction loan (20%) (variable)		—		27,795		—		—		—		—		27,795
Share of total unconsolidated partnership debt	$	—	$	27,795	$	—	$	—	$	—	$	—	$	27,795
Total consolidated and share of unconsolidated partnership debt	$	40,479	$	36,086	$	339,020	$	274,253	$	543,426	$	477,109	$	1,710,373

(1) The holders of the unsecured exchangeable senior notes due 2030 (the “2030 Notes”) have the right to require the Company to repurchase the 2030 Notes, in whole or in part, for cash on each of January 15, 2015, January 15, 2020 and January 15, 2025, or upon the occurrence of a designated event, in each case for a repurchase price equal to 100% of the principal amount of the 2030 Notes plus accrued and unpaid interest.

COMMON AND PREFERRED STOCK DATA

DECEMBER 31, 2011

(Shares in thousands)

SUMMARY OF COMMON SHARES

	Three Months Ended
	12/31/11			9/30/11			6/30/11			3/31/11			12/31/10
Earnings per share
Weighted average common shares outstanding		140,909			129,872			129,858			129,772			129,600
Weighted average OP and LTIP units outstanding		2,980			2,980			2,983			2,993			3,001
Diluted common shares - EPS		143,889			132,852			132,841			132,765			132,601
Funds from operations
Weighted average common shares outstanding		140,909			129,872			129,858			129,772			129,600
Weighted average OP and LTIP units outstanding		2,980			2,980			2,983			2,993			3,001
Dilutive effect of restricted stock		1,461			1,390			1,395			1,488			1,305
Dilutive effect of exchangeable senior notes due 2030		10,018			10,018			10,018			9,914			9,914
Diluted common shares - FFO		155,368			144,260			144,254			144,167			143,820
Closing common shares, OP and LTIP units outstanding		157,081			134,245			134,240			134,229			134,048
Preferred shares outstanding		7,920			7,920			9,200			9,200			9,200
High price	$	18.95		$	21.03		$	20.86		$	19.19		$	19.50
Low price	$	15.44		$	14.94		$	18.14		$	16.72		$	16.64
Average closing price	$	17.68		$	18.16		$	19.31		$	17.92		$	18.21
Closing price	$	18.08		$	16.57		$	19.24		$	19.02		$	18.65
Dividends per share - annualized	$	0.80		$	0.80		$	0.80		$	0.80		$	0.68
Closing dividend yield - annualized		4.4	%		4.8	%		4.2	%		4.2	%		3.6	%

DIVIDENDS PER SHARE

	12/31/11		9/30/11		6/30/11		3/31/11		12/31/10
Common Stock - BMR
Amount	$	0.20	$	0.20	$	0.20	$	0.20	$	0.17
Declared		December 14, 2011		September 15, 2011		June 15, 2011		March 14, 2011		December 15, 2010
Record		December 30, 2011		September 30, 2011		June 30, 2011		March 31, 2011		December 31, 2010
Paid		January 17, 2012		October 17, 2011		July 15, 2011		April 15, 2011		January 17, 2011
Preferred Stock - BMR PrA
Amount	$	0.46094	$	0.46094	$	0.46094	$	0.46094	$	0.46094
Declared		December 14, 2011		September 15, 2011		June 15, 2011		March 14, 2011		December 15, 2010
Record		December 30, 2011		September 30, 2011		June 30, 2011		March 31, 2011		December 31, 2010
Paid		January 17, 2012		October 17, 2011		July 15, 2011		April 15, 2011		January 17, 2011

MARKET SUMMARY

DECEMBER 31, 2011

	Leased Square Feet			Current (1)									Expiration (2)
				Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft			Annualized Base Rent			Percent of Annualized Base Rent			Annualized Base Rent per Leased Sq Ft
Market
				(In thousands)									(In thousands)
Boston		2,362,369		$	131,394			34.2	%	$	55.62		$	139,425			31.1	%	$	59.02
San Francisco		1,955,680			61,686			16.1	%		31.54			76,228			17.0	%		38.98
San Diego		1,861,633			60,630			15.8	%		32.57			74,261			16.5	%		39.89
Maryland		1,512,126			56,985			14.8	%		37.69			72,885			16.2	%		48.20
New York / New Jersey		1,220,702			40,460			10.5	%		33.14			50,273			11.2	%		41.18
Pennsylvania		642,380			14,552			3.8	%		22.65			15,816			3.5	%		24.62
Seattle		161,079			7,527			2.0	%		46.73			8,373			1.9	%		51.98
University Related - Other		359,890			10,629			2.8	%		29.53			11,505			2.6	%		31.97
Total portfolio / weighted average		10,075,859		$	383,863			100.0	%	$	38.10		$	448,766			100.0	%	$	44.54
	Percent Leased
Market	Current Operating Portfolio			Long-Term Lease Up (3)			Total Operating Portfolio			Redevelopment (4)			Unconsolidated Partnership Portfolio (5)
Boston		90.5	%		—			90.5	%		—			—
San Francisco		85.1	%		43.0	%		65.5	%		—			—
San Diego		93.4	%		—			93.4	%		—			100.0	%
Maryland		100.0	%		—			100.0	%		53.1	%		—
New York / New Jersey		85.1	%		—			85.1	%		100.0	%		—
Pennsylvania		88.5	%		—			88.5	%		—			—
Seattle		41.1	%		—			41.1	%		—			—
University Related - Other		97.6	%		—			97.6	%		—			—
Total portfolio (6)		89.1	%		43.0	%		83.6	%		74.1	%		20.6	%
Total portfolio weighted average leased % (7)		90.2	%		50.4	%		87.2	%		54.1	%		20.6	%

(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 monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2) Annualized base rent at expiration is the monthly contractual rent as of date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

(3) Includes Pacific Research Center properties comprising Pacific Industrial Center, Pacific Research Center North and Pacific Research Center South.

(4) See page 23 for detail of the consolidated portfolio and page 33 for definitions of terms.

(5) See page 24 for detail of the unconsolidated partnership portfolio.

(6) Calculated based on leased square feet divided by total square feet.

(7) Calculated based on gross book value for each asset multiplied by the percentage leased.

PROPERTY LISTING - CONSOLIDATED PORTFOLIO

DECEMBER 31, 2011

	Property	Acquisition Date	Property Status (1)		Buildings		Rentable Square Feet		Percent of Rentable Sq Ft			Leased Square Feet		Percent Leased
														12/31/11			9/30/11
	Boston
1	Albany Street	May 31, 2005		Stabilized		2		75,003		0.6	%		75,003		100.0	%		100.0	%
2	320 Bent Street (2)	December 14, 2011		Lease Up		1		184,405		1.5	%		145,304		78.8	%		78.8	%
3	301 Binney Street (2)	December 14, 2011		Lease Up		1		417,290		3.5	%		310,381		74.4	%		70.5	%
4	301 Binney Street Garage (2)	December 14, 2011		Stabilized		1		503 Stalls		n/a			503 Stalls		99.0	%		89.0	%
5	Center for Life Science|Boston	November 17, 2006		Stabilized		1		704,159		5.9	%		689,534		97.9	%		97.9	%
6	Charles Street	April 7, 2006		Stabilized		1		47,912		0.4	%		47,912		100.0	%		100.0	%
7	Coolidge Avenue	April 5, 2005		Lease Up		1		37,684		0.3	%		32,584		86.5	%		34.7	%
8	21 Erie Street	May 31, 2005		Stabilized		1		48,627		0.4	%		48,627		100.0	%		100.0	%
9	40 Erie Street	May 31, 2005		Stabilized		1		100,854		0.8	%		100,854		100.0	%		100.0	%
10	47 Erie Street Parking Structure	May 31, 2005		Stabilized		1		447 Stalls		n/a			447 Stalls		100.0	%		100.0	%
11	Fresh Pond Research Park	April 5, 2005		Lease Up		6		90,702		0.8	%		16,453		18.1	%		18.1	%
12	500 Kendall Street (Kendall D)	May 31, 2005		Stabilized		1		349,325		2.9	%		344,097		98.5	%		98.5	%
13	675 W. Kendall Street (Kendall A)	May 31, 2005		Stabilized		1		302,919		2.5	%		298,871		98.7	%		98.7	%
14	Kendall Crossing Apartments (2)	December 14, 2011		Stabilized		1		37 Apts.		n/a			37 Apts.		100.0	%		98.4	%
15	Sidney Street	May 31, 2005		Stabilized		1		191,904		1.6	%		191,904		100.0	%		100.0	%
16	Vassar Street	May 31, 2005		Stabilized		1		60,845		0.5	%		60,845		100.0	%		100.0	%
	Total Boston					22		2,611,629		21.7	%		2,362,369		90.5	%		89.1	%
	San Francisco
17	Ardentech Court	November 18, 2004		Stabilized		1		55,588		0.5	%		55,588		100.0	%		100.0	%
18	Ardenwood Venture (3)	June 14, 2006		Lease Up		1		72,500		0.6	%		40,031		55.2	%		55.2	%
19	Bayshore Boulevard	August 17, 2004		Stabilized		3		183,344		1.5	%		183,344		100.0	%		100.0	%
20	Bridgeview Technology Park I	September 10, 2004		Lease Up		2		201,567		1.7	%		176,616		87.6	%		87.6	%
21	Bridgeview Technology Park II	March 16, 2005		Lease Up		1		50,400		0.4	%		28,714		57.0	%		57.0	%
22	Dumbarton Circle	May 27, 2005		Stabilized		3		44,000		0.4	%		44,000		100.0	%		100.0	%
23	Forbes Boulevard	September 5, 2007		Lease Up		1		240,000		2.0	%		121,008		50.4	%		50.4	%
24	Gateway Business Park	October 26, 2010		Stabilized		7		284,013		2.4	%		283,164		99.7	%		100.0	%
25	Industrial Road	August 17, 2004		Stabilized		1		171,344		1.4	%		171,344		100.0	%		100.0	%
26	Kaiser Drive	August 25, 2005		Lease Up		1		87,953		0.7	%		49,915		56.8	%		56.8	%
27	Pacific Industrial Center	July 11, 2006		Lease Up		1		305,026		2.5	%		—		—			—
28	Pacific Research Center North	July 11, 2006		Lease Up		6		661,245		5.5	%		333,526		50.4	%		50.4	%
29	Pacific Research Center South	July 11, 2006		Lease Up		3		423,246		3.5	%		263,543		62.3	%		62.3	%
30	Science Center at Oyster Point	October 26, 2010		Stabilized		2		204,887		1.7	%		204,887		100.0	%		100.0	%
	Total San Francisco					33		2,985,113		24.8	%		1,955,680		65.5	%		65.5	%
	San Diego
31	Balboa Avenue	August 13, 2004		Stabilized		1		35,344		0.3	%		35,344		100.0	%		100.0	%
32	Bernardo Center Drive	August 13, 2004		Stabilized		1		61,286		0.5	%		61,286		100.0	%		100.0	%
33	4570 Executive Drive	September 17, 2010		Stabilized		1		125,219		1.0	%		125,219		100.0	%		100.0	%
34	4775 / 4785 Executive Drive	July 15, 2010		Lease Up		1		62,896		0.5	%		—		—			—
35	Faraday Avenue	September 19, 2005		Stabilized		1		28,704		0.2	%		28,704		100.0	%		100.0	%
36	Gazelle Court	March 30, 2010		Stabilized		1		176,000		1.5	%		176,000		100.0	%		100.0	%
37	3525 John Hopkins Court	December 28, 2010		Stabilized		1		48,306		0.4	%		48,306		100.0	%		100.0	%
38	3545-3575 John Hopkins Court	August 16, 2006		Lease Up		1		72,192		0.6	%		53,762		74.5	%		39.7	%
39	6114-6154 Nancy Ridge Drive	May 2, 2007		Stabilized		3		196,557		1.6	%		196,557		100.0	%		100.0	%
40	6828 Nancy Ridge Drive	April 21, 2005		Stabilized		1		42,138		0.4	%		42,138		100.0	%		100.0	%
41	Pacific Center Boulevard	August 24, 2007		Stabilized		2		66,745		0.6	%		66,745		100.0	%		100.0	%
42	Road to the Cure	December 14, 2006		Lease Up		1		67,998		0.6	%		43,415		63.8	%		63.8	%
43	San Diego Science Center	October 21, 2004		Lease Up		1		105,364		0.9	%		84,876		80.6	%		76.5	%
44	10240 Science Center Drive	September 23, 2010		Stabilized		1		49,347		0.4	%		49,347		100.0	%		100.0	%
45	10255 Science Center Drive	September 24, 2004		Stabilized		1		53,740		0.4	%		53,740		100.0	%		100.0	%
46	Sorrento Plaza	December 18, 2010		Stabilized		2		31,184		0.3	%		31,184		100.0	%		100.0	%
47	Sorrento Valley Boulevard	December 7, 2006		Stabilized		1		54,924		0.5	%		54,924		100.0	%		100.0	%
48	11388 Sorrento Valley Road	September 10, 2010		Stabilized		1		35,940		0.3	%		35,940		100.0	%		100.0	%
49	Sorrento West	October 15, 2010		Stabilized		8		164,074		1.4	%		163,798		99.8	%		100.0	%

PROPERTY LISTING - UNCONSOLIDATED PORTFOLIO

DECEMBER 31, 2011

	Property	Acquisition Date	Property Status (1)	Buildings		Rentable Square Feet		Percent of Rentable Sq Ft			Leased Square Feet		Percent Leased
													12/31/11			9/30/11
	San Diego (Continued)
50	Torreyana Road	March 22, 2007	Stabilized		1		81,204		0.7	%		81,204		100.0	%		100.0	%
51	9865 Towne Centre Drive	August 12, 2004	Stabilized		2		94,866		0.8	%		94,866		100.0	%		100.0	%
52	9885 Towne Centre Drive	August 12, 2004	Stabilized		2		104,870		0.9	%		104,870		100.0	%		100.0	%
53	Waples Street	March 1, 2005	Stabilized		1		50,055		0.4	%		50,055		100.0	%		100.0	%
54	Wateridge Circle	November 1, 2011	Stabilized		3		106,490		0.9	%		106,490		100.0	%		n/a
	Total San Diego				39		1,915,443		16.1	%		1,788,770		93.4	%		91.4	%
	Maryland
55	Beckley Street	December 17, 2004	Stabilized		1		77,225		0.6	%		77,225		100.0	%		100.0	%
56	9911 Belward Campus Drive	May 24, 2006	Stabilized		1		289,912		2.4	%		289,912		100.0	%		100.0	%
57	9920 Belward Campus Drive	May 8, 2007	Stabilized		1		51,181		0.4	%		51,181		100.0	%		100.0	%
58	9704 Medical Center Drive	May 3, 2010	Stabilized		1		122,600		1.0	%		122,600		100.0	%		100.0	%
59	9708-9714 Medical Center Drive	May 3, 2010	Redevelopment		3		92,574		0.8	%		—		—			—
60	1701 / 1711 Research Blvd	May 9, 2011	Redevelopment		1		104,743		0.9	%		104,743		100.0	%		100.0	%
61	Shady Grove Road	May 24, 2006	Stabilized		4		635,058		5.3	%		635,058		100.0	%		100.0	%
62	Tributary Street	December 17, 2004	Stabilized		1		91,592		0.8	%		91,592		100.0	%		100.0	%
63	50 West Watkins Mill Road	May 7, 2010	Stabilized		1		57,410		0.5	%		57,410		100.0	%		100.0	%
64	55 / 65 West Watkins Mill Road	February 23, 2010	Stabilized		2		82,405		0.7	%		82,405		100.0	%		100.0	%
	Total Maryland				16		1,604,700		13.4	%		1,512,126		94.2	%		94.2	%
	New York / New Jersey
65	Ardsley Park	June 23, 2011	Redevelopment		5		160,500		1.3	%		160,500		100.0	%		100.0	%
66	Graphics Drive	March 17, 2005	Lease Up		1		72,300		0.6	%		46,386		64.2	%		64.2	%
67	Landmark at Eastview	August 12, 2004	Lease Up		5		763,218		6.4	%		653,296		85.6	%		85.4	%
68	Landmark at Eastview II	August 12, 2004	Stabilized		3		360,520		3.0	%		360,520		100.0	%		100.0	%
69	One Research Way	May 31, 2006	Lease Up		1		49,421		0.4	%		—		—			—
	Total New York / New Jersey				15		1,405,959		11.7	%		1,220,702		86.8	%		86.7	%
	Pennsylvania
70	Eisenhower Road	August 13, 2004	Stabilized		1		27,750		0.2	%		27,750		100.0	%		100.0	%
71	George Patterson Boulevard	October 28, 2005	Stabilized		1		71,500		0.6	%		71,500		100.0	%		100.0	%
72	King of Prussia	August 11, 2004	Stabilized		5		374,387		3.1	%		374,387		100.0	%		100.0	%
73	Phoenixville Pike	May 5, 2005	Lease Up		1		104,400		0.9	%		90,518		86.7	%		86.7	%
74	Spring Mill Drive	July 20, 2006	Lease Up		1		76,561		0.6	%		66,932		87.4	%		87.4	%
75	900 Uniqema Boulevard	January 13, 2006	Stabilized		1		11,293		0.1	%		11,293		100.0	%		100.0	%
76	1000 Uniqema Boulevard	September 30, 2005	Lease Up		1		59,821		0.5	%		—		—			—
	Total Pennsylvania				11		725,712		6.0	%		642,380		88.5	%		88.5	%
	Seattle
77	Elliott Avenue	August 24, 2004	Lease Up		1		154,341		1.3	%		—		—			—
78	500 Fairview Avenue	January 28, 2008	Stabilized		1		22,213		0.2	%		22,213		100.0	%		100.0	%
79	530 Fairview Avenue	January 12, 2006	Lease Up		1		96,188		0.8	%		77,130		80.2	%		80.2	%
80	Monte Villa Parkway	August 17, 2004	Lease Up		1		51,000		0.4	%		19,108		37.5	%		37.5	%
81	217th Place	November 21, 2006	Lease Up		1		67,799		0.6	%		42,628		62.9	%		62.9	%
	Total Seattle				5		391,541		3.3	%		161,079		41.1	%		41.1	%
	University Related - Other
82	Paramount Parkway	July 20, 2010	Stabilized		1		61,603		0.5	%		61,603		100.0	%		100.0	%
83	Patriot Drive	December 17, 2010	Lease Up		1		48,394		0.4	%		39,691		82.0	%		82.0	%
84	Trade Centre Avenue	August 9, 2006	Stabilized		2		78,023		0.6	%		78,023		100.0	%		100.0	%
85	Walnut Street	July 7, 2006	Stabilized		4		149,984		1.2	%		149,984		100.0	%		100.0	%
86	Weston Parkway	December 17, 2010	Stabilized		1		30,589		0.3	%		30,589		100.0	%		100.0	%
	Total University Related - Other				9		368,593		3.0	%		359,890		97.6	%		97.6	%
	Total / weighted average				150		12,008,690		100.0	%		10,002,996		83.3	%		82.6	%

(1) For a definition of Property Status, see page 33.

(2) Previously held through the Company’s joint venture with PREI; the Company purchased PREI’s interest in these properties in December 2011.

(3) The Company owns 87.5% of the limited liability company that owns the Ardenwood Venture property.

REDEVELOPMENT AND DEVELOPMENT

DECEMBER 31, 2011

(Dollars in thousands)

Property	Market	Rentable Square Feet		Percent Leased			Percent In Service			Investment to Date (1)		Estimated Total Investment (2)		Estimated In-Service Date (3)
REDEVELOPMENT:
9708-9714 Medical Center Drive	Maryland		92,574		—			—		$	24,200	$	29,100		Q1 2013
Ardsley Park	New York /New Jersey		160,500		100.0	%		13.9	%		20,800		36,000		Q2 2012
1701 / 1711 Research Blvd	Maryland		104,743		100.0	%		—			13,200		28,200		Q2 2013
Total / weighted average			357,817		74.1	%		6.2	%	$	58,200	$	93,300

DEVELOPMENT POTENTIAL:

Market	Estimated Developable Square Feet
Boston		103,000
San Francisco		1,606,000
San Diego		103,000
Maryland		674,000
New York / New Jersey		964,000
Pennsylvania		103,000
Seattle		114,000
Total		3,667,000

(1) Consists of amounts paid through period end and excludes any amounts accrued.

(2) Excludes costs associated with speculative leasing.

(3) 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.

PROPERTY LISTING—UNCONSOLIDATED PARTNERSHIPS

DECEMBER 31, 2011

(Dollars in thousands)

Property

Acquisition Date

Property Status (1)

Buildings

Rentable Square Feet

Leased Square Feet

Percent Leased

Market

12/31/11

9/30/11

McKellar Court

McKellar Court

September 30, 2004

Stabilized

1

72,863

72,863

100.0

%

100.0

%

San Diego

PREI

650 E. Kendall Street (Kendall B)

April 4, 2007

Lease Up

1

280,000

—

—

—

Boston

350 E. Kendall Street Garage (Kendall F)

April 4, 2007

Stabilized

1

1,409 Stalls

n/a

100.0

%

100.0

%

Boston

	McKellar Court (2)			PREI			Total
Total assets	$	14,371		$	249,702		$	264,073
Total debt (3)		10,280			138,975			149,255
Current annualized base rent		1,882			26,962			28,844
BioMed’s net investment in unconsolidated partnerships	$	12,359		$	21,030		$	33,389
BioMed’s pro rata share of debt		—			27,795			27,795
BioMed ownership percentage		22	%		20	%		20	%

(1) For a definition of Property Status, see page 33.

(2) The Company owns a general partnership interest in the limited partnership that owns this property, which entitles it to 75% of the gains upon a sale of the property and 22% of the operating cash flows.

(3) McKellar Court’s debt is payable to BioMed Realty, L.P. and is included in investments in unconsolidated partnerships on the Company’s consolidated balance sheet.

LEASE EXPIRATIONS

DECEMBER 31, 2011

The weighted average remaining lease terms are 7.8 years.

						Current (1)							Expiration (2)
Expiration	Leased Square Feet		Percent of Leased Square Feet			Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet
						(In thousands)							(In thousands)
Month-to-month		25,999		0.3	%	$	820		0.2	%	$	31.54	$	853		0.2	%	$	32.81
First quarter 2012		88,447		0.9	%		2,193		0.6	%		24.79		2,298		0.5	%		25.98
Second quarter 2012		52,887		0.5	%		2,005		0.5	%		37.91		2,005		0.4	%		37.91
Third quarter 2012		149,883		1.5	%		4,493		1.2	%		29.98		4,613		1.0	%		30.78
Fourth quarter 2012		236,217		2.3	%		14,820		3.9	%		62.74		14,820		3.3	%		62.74
2012		527,434		5.2	%		23,511		6.2	%		44.58		23,736		5.2	%		45.00
2013		572,267		5.7	%		13,433		3.5	%		23.47		14,615		3.3	%		25.54
2014		786,974		7.8	%		21,839		5.7	%		27.75		22,897		5.1	%		29.09
2015		469,196		4.7	%		15,335		4.0	%		32.68		16,525		3.7	%		35.22
2016		1,408,277		14.0	%		54,595		14.2	%		38.77		59,073		13.2	%		41.95
2017		206,491		2.0	%		6,313		1.6	%		30.57		7,751		1.7	%		37.54
2018		1,189,141		11.8	%		52,732		13.7	%		44.34		58,854		13.1	%		49.49
2019		290,589		2.9	%		8,942		2.3	%		30.77		10,882		2.4	%		37.45
2020		400,771		4.0	%		16,273		4.2	%		40.60		14,522		3.2	%		36.24
2021		583,390		5.8	%		13,948		3.6	%		23.91		17,847		4.0	%		30.59
Thereafter		3,615,330		35.8	%		156,122		40.8	%		43.18		201,211		44.9	%		55.65
Total / weighted average		10,075,859		100.0	%	$	383,863		100.0	%	$	38.10	$	448,766		100.0	%	$	44.54

(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 monthly rent payment due at each rent commencement date, multiplied by 12 months.

(2) Annualized base rent at expiration is the monthly contractual rent as of the date of expiration of the applicable lease (not including any extension option(s)), multiplied by 12 months.

EXPIRATIONS BY MARKET

DECEMBER 31, 2011

	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		Maryland		NY/NJ		Pennsylvania		Seattle		University/Other		Total
Month-to-month		—		—		23,956		—		2,043		—		—		—		25,999
2012		3,094		138,963		275,966		—		87,198		—		22,213		—		527,434
2013		12,972		194,554		242,004		—		48,140		61,703		3,962		8,932		572,267
2014		28,019		59,447		78,015		100,310		63,525		407,961		19,108		30,589		786,974
2015		29,158		93,147		295,646		—		—		34,753		—		16,492		469,196
2016		683,587		307,069		19,890		—		40,687		31,166		36,268		289,610		1,408,277
2017		53,392		27,239		47,859		51,181		26,820		—		—		—		206,491
2018		807,347		121,590		178,365		—		24,944		—		42,628		14,267		1,189,141
2019		23,115		61,757		—		168,817		—		—		36,900		—		290,589
2020		111,144		49,915		72,863		122,600		44,249		—		—		—		400,771
2012		16,634		250,306		8,365		39,505		161,783		106,797		—		—		583,390
Thereafter		593,907		651,693		618,704		1,029,713		721,313		—		—		—		3,615,330
Total		2,362,369		1,955,680		1,861,633		1,512,126		1,220,702		642,380		161,079		359,890		10,075,859

10 LARGEST TENANTS

DECEMBER 31, 2011

BioMed’s properties were leased to 174 tenants.

	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1)		Annualized Base Rent per  Leased Sq Ft Current		Percent  of Annualized Base Rent Current Total Portfolio			Lease Expiration
							(In thousands)
1	Human Genome Sciences, Inc.		924,970		9.2	%	$	43,611	$	47.15		11.4	%	June 2026
2	Vertex Pharmaceuticals Incorporated (2)		685,286		6.8	%		33,704		49.18		8.8	%	Multiple
3	Elan Pharmaceuticals, Inc. (3)		414,430		4.1	%		26,915		64.94		7.0	%	Multiple
4	Beth Israel Deaconess Medical Center, Inc.		362,364		3.6	%		25,543		70.49		6.7	%	July 2023
5	Regeneron Pharmaceuticals, Inc.		552,612		5.5	%		23,236		42.05		6.1	%	July 2024
6	Sanofi (4)		418,003		4.1	%		19,469		46.58		5.1	%	Multiple
7	Ironwood Pharmaceuticals, Inc.		210,259		2.1	%		10,758		51.17		2.8	%	February 2016
8	Merck & Co., Inc. (5)		214,946		2.1	%		10,386		48.32		2.7	%	Multiple
9	Children’s Hospital Corporation		150,215		1.5	%		9,401		62.58		2.4	%	May 2023
10	Janssen Biotech, Inc. (Johnson & Johnson)		374,387		3.7	%		8,743		23.35		2.3	%	April 2014
	Total / weighted average (6)		4,307,472		42.7	%	$	211,766	$	49.16		55.3	%

(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 at each rent commencement date, multiplied by 12 months.

(2) 81,204 square feet expire October 2013, 292,758 square feet expire January 2016, 20,608 square feet expire May 2017, and 290,716 square feet expire May 2018.

(3) 138,963 square feet expire December 2012, 15,482 square feet expire January 2013, 55,098 square feet expire December 2014, 115,888 square feet expire April 2024, and 88,999 square feet expire February 2025.

(4) 343,000 square feet expire August 2018 and 75,003 square feet expire October 2018.

(5) This tenant guarantees rent on 39,053 square feet leased at Landmark at Eastview and 30,589 square feet leased at Weston Parkway. 39,053 square feet expire July 2012, 30,589 square feet expire January 2014 and 145,304 square feet expire September 2016.

(6) Without regard to any early lease terminations and/or renewal options.

SAME PROPERTY ANALYSIS

DECEMBER 31, 2011

(Dollars in thousands)

	Three Months Ended
	12/31/11			12/31/10			Percent Change
Total Same Property Portfolio (1)
Number of properties		77			77
Rentable square feet		10,909,799			10,901,474
Percent of total portfolio		88.3	%		91.0	%
Percent leased		80.0	%		75.8	%
Revenues:
Rental	$	79,559		$	79,457			0.1	%
Tenant recoveries		27,714			26,802			3.4	%
Total revenues		107,273			106,259			1.0	%
Expenses:
Rental operations		33,908			34,660			(2.2	%)
Same property net operating income (2)	$	73,365		$	71,599			2.5	%
Less straight line rents, fair-value lease revenue, lease incentive revenue, and bad debt expense		(2,486	)		(2,272	)		9.4	%
Same property net operating income - cash basis (2) (3)	$	70,879		$	69,327			2.2	%
Rental revenue - cash basis (3)	$	76,667		$	75,371			1.7	%

(1) The same property portfolio includes properties in the total portfolio 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 32. For a quantitative reconciliation of net operating income to net income in accordance with GAAP, see page 14.

(3) Represents rents on a “cash-on-cash” basis.

ACQUISITIONS

DECEMBER 31, 2011

Acquisitions detail for 2011:

Property	Market	Closing Date		Rentable Square Feet (1)		Investment		Percent Leased at Acquisition
						(In thousands)
First Quarter 2011
None
Second Quarter 2011
1701 / 1711 Research Blvd (2)	Maryland		May 9, 2011		104,743	$	17,500		100.0	%
450 Kendall Street (Kendall G) (3)	Boston		May 31, 2011		—		8,229		n/a
Ardsley Park (4)	New York /New Jersey		June 23, 2011		160,500		18,000		100.0	%
Second quarter total					265,243	$	43,729		100.0	%
Third Quarter 2011
None
Fourth Quarter 2011
Wateridge Circle	San Diego		November 1, 2011		106,490	$	46,500		100.0	%
Rogers Street Properties (5)	Boston		December 14, 2011		601,695		308,000		75.7	%
Fourth quarter total					708,185	$	354,500		79.4	%
Total 2011 acquisitions					973,428	$	398,229		85.0	%

(1) Rentable square feet at the time of acquisition.

(2) 1701 / 1711 Research Boulevard consists of a single building comprising 104,743 square feet of laboratory and office space and approximately 145,000 square feet of development potential.

(3) Includes approximately 53,000 square feet of development potential.

(4) The Ardsley Park acquisition is comprised of 160,500 square feet of laboratory and office space and approximately 500,000 square feet of future redevelopment and development potential. Concurrent with the acquisition, the company announced the signing of a new 15 year lease with Acorda Therapeutics, Inc. for approximately 138,200 square feet of laboratory and office space. Pursuant to the lease agreement, the company will proceed on an extensive renovation of the property over the next twelve months, bringing the estimated total investment in the property upon lease commencement to approximately $36.0 million.

(5) The company acquired the remaining 80% interest in 320 Bent (comprising 184,405 square feet of laboratory and office space), 301 Binney Street (comprising 417,290 square feet of laboratory and office space), 301 Binney Street Garage (a 503 stall garage), and Kendall Crossing Apartments (a 37 unit apartment building) for $308.0 million from its PREI joint venture.

LEASING ACTIVITY (1)

DECEMBER 31, 2011

	Leased Square Feet			Current Annualized Base  Rent per Leased Sq Ft
Leased Square Feet as of September 30, 2011		9,902,696
Acquisitions		106,490		$	39.78
Expirations		(126,808	)		26.62
Renewals, amendments, and extensions		112,795			26.77
New leases - 1st generation (2)		46,828			38.19
New leases - 2nd generation (2)		33,858			24.15
Leased Square Feet as of December 31, 2011		10,075,859
Pre-leased Square Feet as of September 30, 2011		83,246
Pre-leased new leases - 1st generation (2)		10,955			27.00
Pre-leased new leases - 2nd generation (2)		49,506			31.75
Pre-leased Square Feet as of December 31, 2011		143,707
Gross Leasing Activity - Fourth Quarter 2011		253,942			29.51
Net Absorption		66,673		$	33.74

(1) Leasing activity for leases signed during the periods presented, which may be different than the period of actual occupancy.

(2) For definitions of first and second generation leases, see page 33.

TENANT IMPROVEMENTS AND LEASING COMMISSIONS

DECEMBER 31, 2011

	Three Months Ended
	12/31/11		9/30/11		6/30/11		3/31/11		12/31/10
Renewals, Amendments, and Extensions (1)
Number of renewals		7		8		8		12		5
Square feet		112,795		94,506		102,413		230,780		167,310
Tenant improvement costs per square foot (2)	$	—	$	0.79	$	2.42	$	1.05	$	3.07
Leasing commission costs per square foot (2)		1.96		6.85		5.52		1.73		5.06
Total tenant improvement and leasing commission costs psf	$	1.96	$	7.64	$	7.94	$	2.78	$	8.13
New Leases - 1st Generation (3)
Number of leases		5		2		6		4		4
Square feet		57,783		107,504		476,335		81,919		123,478
Tenant improvement costs per square foot (2)	$	42.91	$	139.53	$	70.24	$	43.13	$	105.48
Leasing commission costs per square foot (2)		8.26		0.52		13.68		13.46		14.21
Total tenant improvement and leasing commission costs psf	$	51.17	$	140.05	$	83.92	$	56.59	$	119.69
New Leases - 2nd Generation (3)
Number of leases		9		9		6		11		4
Square feet		83,364		124,958		23,771		150,547		38,398
Tenant improvement costs per square foot (2)	$	0.99	$	33.92	$	2.84	$	13.00	$	34.06
Leasing commission costs per square foot (2)		1.36		8.37		3.03		5.97		9.31
Total tenant improvement and leasing commission costs psf	$	2.34	$	42.29	$	5.87	$	18.97	$	43.37
Total
Number of renewals/leases		21		19		20		27		13
Square feet		253,942		326,968		602,519		463,246		329,186
Tenant improvement costs per square foot (2)	$	10.09	$	59.07	$	56.05	$	12.37	$	45.10
Leasing commission costs per square foot (2)		3.19		5.35		11.87		5.18		8.99
Total tenant improvement and leasing commission costs psf	$	13.28	$	64.42	$	67.92	$	17.55	$	54.09

(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 the Company’s portfolio. For definitions of first and second generation leases, see page 33.

NON-GAAP FINANCIAL MEASURE DEFINITIONS

DECEMBER 31, 2011

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) and Adjusted Funds from Operations (AFFO)

We present funds from operations, or FFO, and adjusted funds from operations, or AFFO, available to common shares and partnership and LTIP units because we consider them important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO and AFFO 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 a 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. As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, impairment charges, real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.

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, (b) non-cash revenues and expenses, (c) recurring capital expenditures and tenant improvements, and (d) leasing commissions.

Our computation of FFO and AFFO may differ from the methodology for calculating FFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO and AFFO do 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 and AFFO 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. FFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures 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) noncontrolling interests in our operating partnership, (b) dividends payable on and cost of redemption of our series A preferred stock and (c) non-cash adjustments for marketable securities. 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, noncontrolling 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.

DEFINITIONS

DECEMBER 31, 2011

Property Status

Stabilized

Represents operating properties that are more than 90% leased.

Lease up

Represents operating properties that are less than 90% leased.

Redevelopment

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.

Development

Represents properties that we are currently developing through ground up construction.

Development Potential

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

Lease Type

First Generation

Leases on space which, in management’s evaluation, require significant improvements to prepare or condition the premises for its intended purpose or enhance the value of the property. This generally includes capital expenditures for development, redevelopment or repositioning a property.

Second Generation

Leases which are not considered by management to be first generation leases.