Biomed Realty Trust 8-K Biomed Realty Trust Reports Second Quarter 2015 Financial Results

Exhibit 99.2

Supplemental Operating and Financial Data : June 30, 2015

BioMed Realty Trust, Inc.	Investor Relations
17190 Bernardo Center Drive	Corporate Communications Contact:
San Diego, CA 92128	Rick Howe
t 858.485.9840f 858.485.9843	Senior Director, Corporate Communications
biomedrealty.com	richard.howe@biomedrealty.com

TABLE OF CONTENTS

JUNE 30, 2015

	Page				Page
Second Quarter Highlights		3		Debt Summary		20
Investor Information		4		Debt Analysis		21	*
Equity Research Coverage		5		Debt Maturities		22	*
Financial and Operating Highlights		6	*	Market Summary		23	*
2015 Guidance		7	*	Property Listing		24-27	*
Portfolio Summary		8	*	Development and Redevelopment		28	*
Consolidated Balance Sheets		9		Capital Expenditures		29	*
Consolidated Statements of Income		10		Lease Expirations		30
Balance Sheet / Income Statement Detail		11		Expirations by Market		31
FFO, CFFO and AFFO		12	*	Future Lease Commencements		32
FFO, CFFO and AFFO per Share		13	*	20 Largest Tenants		33
Reconciliation of EBITDA and Adjusted EBITDA		14		Leasing Activity		34	*
Reconciliation of Net Operating Income		15		Leasing Data		35	*
Same Property Analysis - Three Months Ended		16	*	Acquisitions and Dispositions		36
Same Property Analysis - Six Months Ended		17	*	Non-GAAP Financial Measure Definitions		37	*
Interest Expense and Coverage Ratios		18	*	Definitions		38
Capital Structure		19

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; risks associated with the availability and terms of financing, the use of debt to fund acquisitions, developments and other investments, 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; reductions in asset valuations and related impairment charges; risks and uncertainties affecting property development and construction; risks associated with tax credits, grants and other subsidies to fund development activities; risks associated with downturns in foreign, domestic and local economies, changes in interest rates and foreign currency exchange rates, and volatility in the securities markets; ownership of properties outside of the United States that subject the company to different and potentially greater risks than those associated with the company’s domestic operations; risks associated with the company’s investments in loans, including borrower defaults and potential principal losses; potential liability for uninsured losses and environmental contamination; risks associated with security breaches and other disruptions to the company’s information technology networks and related systems; 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 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.

* New or changed page for Q2 2015 Supplement

SECOND QUARTER HIGHLIGHTS

JUNE 30, 2015

Financial Results

• Core Funds from Operations (CFFO) and Funds from Operations (FFO), calculated in accordance with standards established by NAREIT, for the second quarter were $0.58 per diluted share. These amounts include realized gains totaling $50.5 million, or $0.24 per diluted share, net of an allocation of income attributable to noncontrolling interests, primarily from the sale of equity investments in a single life science company. CFFO and FFO for the same period in 2014 were $0.40 per diluted share.

• Total revenues for the second quarter were approximately $158.0 million, compared to approximately $171.2 million for the same period in 2014. Rental revenues for the second quarter were approximately $116.3 million, compared to $120.9 million for the same period in 2014.

• Adjusted funds from operations (AFFO) was $0.48 per diluted share for the quarter, compared to $0.32 per diluted share for the same period in 2014. The company reported net income attributable to common stockholders for the quarter of approximately $23.6 million, or $0.11 per diluted share, compared to $18.6 million, or $0.10 per diluted share, for the same period in 2014.

Portfolio Highlights

Second quarter leasing was comprised of:

• 28 new leases totaling approximately 1.0 million square feet, highlighted by new and expanded tenant relationships with:

• Alnylam Pharmaceuticals for approximately 295,000 square feet at the 675 West Kendall Street property in Cambridge, Massachusetts;

• Illumina for a 155,000 square foot build-to-suit lease transaction at Granta Park in Cambridge, United Kingdom;

• Regeneron Pharmaceuticals for approximately 116,200 square feet at the Landmark at Eastview campus in Tarrytown, New York;

• Wake Forest University for approximately 115,300 square feet at the Wake 60 property in Winston-Salem, North Carolina;

• Duke University for 100,000 square feet at the Chesterfield Building in Durham, North Carolina; and

• Eli Lilly for approximately 22,400 square feet at the 450 Kendall Street and 60 Hampshire properties in Cambridge, Massachusetts.

• 18 lease renewals and extensions totaling approximately 264,800 square feet.

During the second quarter, the company completed construction of two development projects, which were delivered on time and on budget, including:

• An approximately 63,500 square foot laboratory and office building at 450 Kendall Street in Cambridge, Massachusetts, located in close proximity to three of the company’s properties in the heart of the Kendall Square: 500 Kendall Street, 675 West Kendall Street and 650 East Kendall Street.

• An approximately 42,400 square foot laboratory and office build-to-suit development which is 100% leased to a subsidiary of Takeda Pharmaceutical Company at 430 Cambridge Science Park in Cambridge, United Kingdom.

About BioMed Realty Trust

BioMed Realty, with its trusted expertise and valuable relationships, delivers optimal real estate solutions for biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. BioMed Realty owns or has interests in properties comprising approximately 18.7 million rentable square feet. Additional information is available atwww.biomedrealty.com.Follow us on Twitter @biomedrealty.

INVESTOR INFORMATION

JUNE 30, 2015

(In thousands, except per share amounts)

Company Information
Corporate Headquarters	Trading Symbol	Transfer Agent	Stock Exchange Listing
17190 Bernardo Center Drive	BMR	Computershare Shareowner Services LLC	New York Stock Exchange
San Diego, CA 92128		250 Royall Street
(858) 485-9840		Canton, MA 02021
(858) 485-9843 (fax)		(877) 296-3711
Please visit our corporate website at:www.biomedrealty.com
Board of Directors	Executive Leadership Team
Alan D. Gold	Alan D. Gold	Karen A. Sztraicher	John P. Bonanno
Chairman	Chairman, President and	Executive Vice President,	Executive Vice President,
Daniel M. Bradbury	Chief Executive Officer	Asset Management	Development & Investments
William R. Brody, M.D., Ph.D.	Gary A. Kreitzer	Jonathan P. Klassen	James R. Berens
Gary A. Kreitzer	Executive Vice President, Director	Executive Vice President,	President
Theodore D. Roth	Greg N. Lubushkin	General Counsel	Wexford Science & Technology
Janice. L. Sears	Chief Financial Officer

Common Stock Data (NYSE: BMR)	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
High price	$	22.93		$	25.11		$	22.03		$	22.62		$	22.47
Low price	$	19.16		$	20.26		$	19.87		$	19.92		$	19.94
Average closing price	$	20.71		$	22.97		$	21.30		$	21.73		$	21.24
Closing price	$	19.34		$	22.66		$	21.54		$	20.20		$	21.83
Dividends per share - annualized	$	1.04		$	1.04		$	1.04		$	1.00		$	1.00
Closing dividend yield - annualized		5.4	%		4.6	%		4.8	%		5.0	%		4.6	%
Total common shares and units outstanding		208,966			208,968			202,847			202,860			197,931
Closing market value of outstanding shares and units	$	4,041,402		$	4,735,215		$	4,369,337		$	4,097,785		$	4,320,839
Consolidated Debt		2,897,073			2,758,530			2,712,900			2,845,686			2,841,063
Total market capitalization	$	6,938,475		$	7,493,745		$	7,082,237		$	6,943,471		$	7,161,902

Tentative Schedule for Quarterly Results
Third Quarter 2015	October 28, 2015
Fourth Quarter 2015	February 3, 2016
First Quarter 2016	May 4, 2016
Second Quarter 2016	August 3, 2016

EQUITY RESEARCH COVERAGE

JUNE 30, 2015

Canaccord Genuity	Paul Morgan Joseph Ng	(415) 310-7269 (212) 389-8096	pmorgan@canaccordgenuity.com jng@canaccordgenuity.com
Cowen and Company	James Sullivan Tom Catherwood	(646) 562-1380 (646) 562-1382	james.sullivan@cowen.com tom.catherwood@cowen.com
Green Street Advisors	Michael Knott Kevin Tyler	(949) 640-8780 (949) 640-8780	mknott@greenst.com ktyler@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
Mizuho Securities	Richard Anderson	(212) 205-8445	richard.anderson@us.mizuho-sc.com
Morgan Stanley	Vikram Malhotra Landon Park	(212) 761-7064 (212) 761-6368	vikram.malhotra@morganstanley.com landon.park@morganstanley.com
Raymond James	Paul Puryear William Crow	(727) 567-2253 (727) 567-2594	paul.puryear@raymondjames.com bill.crow@raymondjames.com
Robert W. Baird & Co.	David Rodgers Stephen Dye	(216) 737-7341 (312) 609-5480	drodgers@rwbaird.com sdye@rwbaird.com
Stifel, Nicolaus & Company, Inc.	Daniel Bernstein Elizabeth Moran	(443) 224-1351 (443) 224-1353	bernsted@stifel.com morane@stifel.com
UBS Securities	Ross Nussbaum Nick Yulico	(212) 713-2484 (212) 713-3402	ross.nussbaum@ubs.com nick.yulico@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

JUNE 30, 2015

(In thousands, except per share and ratio amounts)

	Three Months Ended															Six Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			6/30/15			6/30/14
Selected Operating Data:
Rental revenues	$	116,260		$	117,520		$	121,973		$	122,838		$	120,924		$	233,780		$	240,950
Other revenues		141			16,534			2,930			3,452			9,957			16,675			20,072
Total revenues		157,974			178,010			165,656			168,916			171,161			335,984			340,037
Net operating income - GAAP (1)		102,704			119,363			112,212			114,017			117,525			222,067			233,878
Net operating income - cash basis (1)		98,681			116,766			111,439			113,662			115,995			215,448			230,233
Other income/(expense)		64,021			12,884			(184	)		2,148			1,027			76,905			9,190
General and administrative expense		12,531			12,789			12,162			12,768			12,443			25,320			24,385
Interest expense, net		19,315			21,395			21,924			22,215			23,131			40,710			51,141
Capitalized interest		8,191			6,781			6,143			6,120			5,423			14,971			9,614
General and administrative expense / Total revenues		7.9	%		7.2	%		7.3	%		7.6	%		7.3	%		7.5	%		7.2	%
Net income available to common stockholders (2)		23,578			17,345			140,349			15,960			18,636			40,923			37,469
FFO - diluted (3)		120,811			85,259			73,157			83,695			83,378			206,070			83,383
CFFO - diluted (3)		121,911			85,723			74,117			84,182			84,512			207,634			84,633
AFFO - diluted (3)		100,218			75,704			56,962			73,121			67,471			175,922			79,400
Selected Balance Sheet Data:
Investments in real estate, gross	$	6,634,014		$	6,517,174		$	6,363,014		$	6,473,731		$	6,362,100		$	6,634,014		$	6,362,100
Investments in real estate, net		5,607,912			5,517,629			5,416,575			5,535,115			5,474,648			5,607,912			5,474,648
Cash and cash equivalents		45,329			64,958			46,659			33,864			39,004			45,329			39,004
Total assets		6,338,209			6,308,418			6,170,886			6,238,312			6,159,737			6,338,209			6,159,737
Total debt		2,897,073			2,758,530			2,712,900			2,845,686			2,841,063			2,897,073			2,841,063
Total liabilities		3,257,362			3,151,340			3,100,944			3,228,602			3,207,344			3,257,362			3,207,344
Profitability Measures:
Net income per share - diluted	$	0.11		$	0.08		$	0.70		$	0.08		$	0.10		$	0.20		$	0.19
FFO per share - diluted (3)	$	0.58		$	0.41		$	0.35		$	0.40		$	0.40		$	0.99		$	0.80
CFFO per share - diluted (3)	$	0.58		$	0.41		$	0.36		$	0.40		$	0.40		$	0.99		$	0.81
AFFO per share - diluted (3)	$	0.48		$	0.36		$	0.27		$	0.35		$	0.32		$	0.84		$	0.71
Dividend per share - common stock	$	0.26		$	0.26		$	0.26		$	0.25		$	0.25		$	0.52		$	0.50
CFFO payout ratio (4)		44.8	%		63.4	%		72.2	%		62.5	%		62.5	%		52.5	%		61.7	%
AFFO payout ratio (4)		54.2	%		72.2	%		96.3	%		71.4	%		78.1	%		61.9	%		70.4	%
Financial Ratios:
EBITDA (5)	$	105,615		$	107,159		$	229,158		$	105,677		$	104,445
Adjusted EBITDA (5)		141,299			117,508			100,712			106,103			104,940
Net Debt / Adjusted EBITDA (5) (6)		5.0			5.7			6.5			6.6			6.7
Interest coverage		8.4			6.2			5.2			5.4			5.2
Fixed charge coverage		7.3			5.5			4.7			4.9			4.7
Debt / Total assets		45.7	%		43.7	%		44.0	%		45.6	%		46.1	%
Debt / Total gross assets		39.3	%		37.7	%		38.1	%		39.7	%		40.3	%
Debt / Total capitalization		41.8	%		36.8	%		38.3	%		41.0	%		39.7	%

(1) See page 15 for detail of net operating income - GAAP and net operating income - cash basis. For definitions and discussions see page 37.

(2) For the three months ended December 31, 2014, amount includes $136.6 million related to the gain on sale of the Company’s 9911 Belward Campus Drive property in Rockville, Maryland.

(3) For definitions and discussion of FFO, CFFO and AFFO, see page 37. For a quantitative reconciliation of the differences between FFO, CFFO, AFFO and net income available to common stockholders, see page 12.

(4) See page 13 for detail of the CFFO and AFFO payout ratios.

(5) For definitions and discussion of EBITDA and Adjusted EBITDA, see page 37. For a quantitative reconciliation of the differences between EBITDA, Adjusted EBITDA and net income available to common stockholders, page 14.

(6) Adjusted EBITDA is calculated by adding to EBITDA: (a) noncontrolling interests in our operating partnership, (b) non-cash adjustments for securities, (c) losses from sales of real estate and (d) executive severance and by subtracting from EBITDA gains from sales of real estate, on an annualized basis. See page 14 for detail.

2015 GUIDANCE

JUNE 30, 2015

(Dollars in thousands)

	FFO and CFFO Per Diluted Share Guidance
	(low to high)
Projected Net Income per Diluted Share Available to Common Stockholders	$0.36 - $0.42
Add: Impairment of real estate, net	$0.16
Real estate depreciation and amortization	$1.21
Noncontrolling interests in operating partnership	$0.01
Projected FFO per diluted Share	$1.74 - $1.80
Add: Acquisition-related expenses	$0.01
Projected CFFO per diluted Share	$1.75 - $1.81
Weighted-average common shares - EPS	208.0 million
Weighted-average common shares - FFO	209.0 million
	Major Assumptions
GAAP Rental Revenues	$475,000 - $505,000
Interest Expense	$81,000 - $91,000
Capitalized Interest	$27,000 - $31,000
General & Administrative Expense	$49,000 - $51,000
Tenant Recovery Percentage	75% - 78%
BioMed Ventures Investment Gains, net (1)	$76,700
Termination Income, net (2)	$16,200
2015 FY Leasing
FY Net Absorption Operating Portfolio Target	350,000 - 600,000 SF
(Less: Q1 / Q2 Actual) (3)	(100,000 SF)
Implied Q3 / Q4 Net Absorption	250,000 - 500,000 SF
Add: Q3 / Q4 Expirations (excludes month-to-month)	369,000 SF
(Less: Q3 / Q4 Forward Leasing Deliveries)	(110,000 SF)
Implied Q3 / Q4 Gross Leasing Operating Portfolio	509,000 - 759,000 SF
Add: Q1 / Q2 Actual Gross Leasing (3)	1.7 million SF
Impled FY Gross Leasing Operating Portfolio	2.2 - 2.45 million SF
Development Portfolio Gross Leasing	150,000 - 250,000 SF
Subsequent Development / Redevelopment Gross Leasing	255,000 - 355,000 SF
FY Total Gross Leasing	2.6 - 3.05 million SF
Same Property Assumptions (Rolling Four Quarters)
Q3 2015 Cash NOI YOY Comparison	(6%) - (4%)
Q4 2015 Cash NOI YOY Comparison	(2%) - 0%
Q1 2016 Cash NOI YOY Comparison	5% - 7%
Q2 - Q4 2016 Cash NOI YOY Comparison	10%+/-
Capital Assumptions (4)
Dispositions
Q3 / Q4 2015	$15,000 - $40,000
2016	$125,000 - $150,000
Unsecured Bond Issuance (Second Half of 2015)	$400,000 - $600,000
Unsecured Bond Issuance (First Half of 2016)	$400,000 - $600,000
2015 Future Development/Redevelopment Portfolio Funding Estimate (4) (5)	$200 - $250 million
Operating Portfolio - Leasing Capital (4)	$70 - $95 million
Signed Leases	$50 - $60 million
Speculative	$20 - $35 million

Note: The company’s 2015 FFO and CFFO estimates reflect the impact of previously announced new investments and dispositions. The foregoing estimates also include the impact of: (i) lease terminations recorded through the six months ended June 30, 2015, aggregating $16.2 million, or $0.08 per diluted share, (ii) investment gains and losses, net of an allocation of income attributable to noncontrolling interests, estimated for the full year 2015 to be approximately $76.7 million, or $0.37 per diluted share, and (iii) the impact of the new development project in Providence, Rhode Island. These estimates also do not include the effect of any other lease termination revenue or investment gains or losses. The company continues to target new investment opportunities, including acquisitions and new development projects; however, the company’s 2015 FFO and CFFO estimates do not reflect the impact of any other future new investments (acquisitions or development), or related financing activity, as the impact of such investments may vary significantly based on the nature of these investments, timing and other factors. The foregoing estimates are forward-looking and reflect management’s view of current and future market conditions, including certain assumptions with respect to leasing activity, rental rates, occupancy levels, timing of revenue recognition, interest rates, financings, acquisitions, dispositions, development and redevelopment and the amount and timing of acquisitions, development and redevelopment activities. The company’s actual results may differ materially from these estimates.

(1) Represents the impact of gains recorded during the six months ended June 30, 2015 and expected sales in the second half of 2015 from the sale of investments in life science companies, net of an allocation of income attributable to noncontrolling interests.

(2) Does not include the effect of any other revenue or income (or losses) that might arise from lease terminations other than the impact of lease termination revenue recorded during the six months ended June 30, 2015.

(3) Excludes 16,798 SF at 450 Kendall from the totals on pg. 34. The property was placed into the operating portfolio in 2Q15, but was a development asset as of 1/1/15 for the purposes of gross leasing and net absorption assumptions.

(4) Represents the period covering July through December 2015.

(5) Excludes capitalized interest and capitalized operating expenses.

PORTFOLIO SUMMARY

JUNE 30, 2015

			Current
	Gross		Annualized		Percent of					Rentable		Leased
	Book Value		Base Rent (1)		CABR			Buildings		Square Feet		Square Feet		Leased %
	(In thousands)		(In thousands)
Operating portfolio
Boston	$	1,863,823	$	156,152		28.0	%		27		3,088,594		2,689,900		87.1	%
San Francisco		845,115		62,003		11.1	%		30		2,861,061		2,505,129		87.6	%
San Diego		779,450		62,159		11.1	%		40		1,918,547		1,815,609		94.6	%
Maryland		546,101		50,209		9.0	%		19		1,689,783		1,587,548		93.9	%
New York		413,115		46,490		8.3	%		15		1,490,461		1,460,321		98.0	%
Cambridge, UK		192,189		18,283		3.3	%		12		514,644		512,425		99.6	%
North Carolina		186,982		14,588		2.6	%		5		858,328		843,477		98.3	%
Pennsylvania
Philadelphia		190,227		13,282		2.4	%		2		489,098		481,781		98.5	%
Suburban PA		83,601		6,194		1.1	%		5		393,149		263,974		67.1	%
Seattle
Downtown Seattle		253,757		14,033		2.5	%		3		368,526		314,434		85.3	%
Suburban Seattle		38,546		2,197		0.4	%		2		118,799		97,966		82.5	%
University Related (2)		439,361		40,559		7.3	%		14		1,773,415		1,597,386		90.1	%
Total operating portfolio	$	5,832,267	$	486,148		87.1	%		174		15,564,405		14,169,950		91.0	%
Active Redevelopment (4)
San Diego	$	54,907	$	—		—			3		182,866		—		—
Active new construction
New York	$	167,351	$	13,369		2.4	%		2		297,000		297,000		100.0	%
San Francisco		34,855		11,829		2.1	%		2		360,000		360,000		100.0	%
San Diego		62,024		—		—			3		316,000		—		—
Cambridge, UK		351		6,508		1.2	%		1		155,000		155,000		100.0	%
North Carolina		25,823		7,647		1.4	%		3		567,712		383,250		67.5	%
Seattle		36,373		2,161		0.4	%		1		122,702		46,407		37.8	%
University Related (2)		145,801		12,241		2.2	%		1		510,419		505,683		99.1	%
Total active new construction	$	472,578	$	53,756		9.6	%		13		2,328,833		1,747,340		75.0	%
Total Consolidated Portfolio	$	6,359,752	$	539,904		96.8	%		190		18,076,104		15,917,290		88.1	%
Unconsolidated partnership portfolio (3)
Boston	$	22,579	$	16,083		2.9	%		2		282,217		281,987		99.9	%
San Diego		11,744		2,037		0.4	%		1		72,863		72,863		100.0	%
Maryland		146		—		—			—		—		—		—
Total unconsolidated partnership portfolio	$	34,469	$	18,120		3.2	%		3		355,080		354,850		99.9	%
Total Portfolio	$	6,394,221	$	558,024		100.0	%		193		18,431,184		16,272,140		88.3	%
Total Land bank	$	274,263		—		—			—		6,231,500		—		—
Total Portfolio Including Land Bank	$	6,668,484									24,662,684

(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) Includes properties within our University platform that are not located in other markets noted above. See pages 24 - 27 for property listing.

(3) See page 27 for detail of the unconsolidated partnership portfolio.

(4) Includes Towne Centre Technology Park, which was acquired in May 2015. Sidney Reseach Park properties remain within the operating portfolio.

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2015

(In thousands)

	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Assets
Investments in real estate:
Land	$	651,201		$	643,041		$	704,958		$	701,977		$	706,887
Buildings and improvements		4,956,823			4,909,684			4,877,135			5,018,091			4,957,038
Land under development		248,225			225,846			151,242			158,389			155,206
Construction in progress		777,766			738,603			629,679			595,273			542,970
Investments in real estate, gross		6,634,015			6,517,174			6,363,014			6,473,730			6,362,101
Accumulated depreciation		(1,026,103	)		(999,545	)		(946,439	)		(938,615	)		(887,453	)
Investments in real estate, net		5,607,912			5,517,629			5,416,575			5,535,115			5,474,648
Investments in unconsolidated partnerships		34,469			34,978			35,291			36,275			32,440
Cash and cash equivalents		45,329			64,958			46,659			33,864			39,004
Accounts receivable, net		10,740			13,518			14,631			18,843			9,686
Accrued straight-line rents, net		169,592			164,049			163,716			183,904			181,705
Deferred leasing costs, net		229,290			219,549			219,713			224,824			236,848
Other assets		240,877			293,737			274,301			205,487			185,406
Total assets	$	6,338,209		$	6,308,418		$	6,170,886		$	6,238,312		$	6,159,737
Liabilities and Equity
Liabilities:
Mortgage notes payable, net	$	488,945		$	503,200		$	496,757		$	478,543		$	456,034
Exchangeable senior notes, net		—			—			95,678			95,678			180,000
Unsecured senior notes, net		1,294,614			1,294,255			1,293,903			1,293,572			1,293,246
Unsecured senior term loans		750,856			741,626			749,326			755,876			764,106
Unsecured line of credit		369,000			226,000			84,000			229,000			155,000
Accounts payable, accrued expenses, and other liabilities		353,947			386,259			381,280		��	375,933			358,958
Total liabilities		3,257,362			3,151,340			3,100,944			3,228,602			3,207,344
Equity:
Stockholders’ equity:
Common stock		2,036			2,036			1,975			1,975			1,925
Additional paid-in capital		3,750,959			3,746,823			3,649,235			3,643,957			3,557,886
Accumulated other comprehensive loss, net		(24,544	)		14,804			(2,214	)		(20,915	)		(24,088	)
Dividends in excess of earnings		(710,913	)		(681,564	)		(645,983	)		(675,763	)		(642,360	)
Total stockholders’ equity		3,017,538			3,082,099			3,003,013			2,949,254			2,893,363
Noncontrolling interests		63,309			74,979			66,929			60,456			59,030
Total equity		3,080,847			3,157,078			3,069,942			3,009,710			2,952,393
Total liabilities and equity	$	6,338,209		$	6,308,418		$	6,170,886		$	6,238,312		$	6,159,737

CONSOLIDATED STATEMENTS OF INCOME

JUNE 30, 2015

(In thousands, except share and per share data)

	Three Months Ended															Six Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			6/30/15			6/30/14
Revenues:
Rental	$	116,260		$	117,520		$	121,973		$	122,838		$	120,924		$	233,780		$	240,950
Tenant recoveries		41,573			43,956			40,753			42,626			40,280			85,529			79,015
Other revenue		141			16,534			2,930			3,452			9,957			16,675			20,072
Total revenues		157,974			178,010			165,656			168,916			171,161			335,984			340,037
Expenses:
Rental operations		55,270			58,647			53,444			54,899			53,636			113,917			106,159
Depreciation and amortization		61,272			67,080			64,744			64,452			62,736			128,352			125,145
General and administrative		12,531			12,789			12,162			12,768			12,443			25,320			24,385
Executive severance		—			9,891			4,380			—			—			9,891			—
Acquisition-related expenses		1,100			464			960			487			1,134			1,564			2,384
Total expenses		130,173			148,871			135,690			132,606			129,949			279,044			258,073
Income from operations		27,801			29,139			29,966			36,310			41,212			56,940			81,964
Equity in net income/(loss) of unconsolidated partnerships		139			153			160			733			(10	)		292			(148	)
Interest expense, net		(19,315	)		(21,395	)		(21,924	)		(22,215	)		(23,131	)		(40,710	)		(51,141	)
Impairment of real estate (1)		(35,071	)		—			—			—			—			(35,071	)		—
Gain on sale of real estate (2)		—			—			136,609			—			—			—			—
Other income/(expense) (3)		64,021			12,884			(184	)		2,148			1,027			76,905			9,190
Net income		37,575			20,781			144,627			16,976			19,098			58,356			39,865
Net income attributable to noncontrolling interests		(13,997	)		(3,436	)		(4,278	)		(1,016	)		(462	)		(17,433	)		(2,396	)
Net income available to common stockholders	$	23,578		$	17,345		$	140,349		$	15,960		$	18,636		$	40,923		$	37,469
Net income per share available to common stockholders:
Basic earnings per share	$	0.11		$	0.08		$	0.71		$	0.08		$	0.10		$	0.20		$	0.19
Diluted earnings per share	$	0.11		$	0.08		$	0.70		$	0.08		$	0.10		$	0.20		$	0.19
Weighted-average common shares outstanding:
Basic		202,055,325			200,789,795			196,017,579			194,022,619			191,003,248			201,423,721			190,954,827
Diluted		207,458,236			206,536,148			208,528,196			199,574,893			196,800,354			206,997,405			196,673,649

(1) Includes impairment of King of Prussia property that was sold in May 2015.

(2) Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

(3) See page 11 for detail.

BALANCE SHEET/INCOME STATEMENT DETAIL

JUNE 30, 2015

(In thousands)

	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Investment in equity securities, cost basis	$	68,276		$	58,204		$	53,708		$	38,334		$	30,250
Unrealized gain on equity securities (1)		17,857			71,662			48,341			22,001			18,451
Investment in equity securities, net		86,133			129,866			102,049			60,335			48,701
Restricted cash		18,202			24,019			30,057			8,297			9,096
Acquired above-market leases, net		10,240			10,692			11,207			12,197			13,262
Acquired below-market ground lease, net		21,569			24,669			24,975			25,256			25,575
Deferred loan costs, net		13,683			14,851			16,154			16,997			18,652
Lease incentives, net		23,090			23,790			24,414			23,907			19,988
Prepaid ground rent		18,286			18,333			18,380			18,380			18,206
Other		49,674			47,517			47,065			40,118			31,926
Other assets	$	240,877		$	293,737		$	274,301		$	205,487		$	185,406
Security deposits	$	14,649		$	14,312		$	14,931		$	14,766		$	14,348
Dividends and distributions payable		54,331			54,332			52,740			50,715			49,483
Accounts payable, accrued expenses and other liabilities		247,266			278,553			276,176			271,634			253,259
Derivative instruments		2,256			2,632			1,635			1,328			2,909
Acquired below-market leases, net		35,445			36,430			35,798			37,490			38,959
Accounts payable, accrued expenses and other liabilities	$	353,947		$	386,259		$	381,280		$	375,933		$	358,958
	Three Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Lease termination revenue	$	28		$	16,150		$	2,801		$	3,300		$	1,023
Construction loan revenue (2)		—			—			—			—			8,653
Other revenue		113			384			129			152			281
Other revenue	$	141		$	16,534		$	2,930		$	3,452		$	9,957
Rental operations expenses	$	40,983		$	44,904		$	38,902		$	39,359		$	39,511
Real estate taxes		14,287			13,743			14,542			15,540			14,125
Rental operations	$	55,270		$	58,647		$	53,444		$	54,899		$	53,636
Gain on extinguishment of debt	$	15		$	—		$	—		$	—		$	—
Gain/(loss) on derivative instruments		189			(170	)		276			(190	)		(270	)
Income on investment securities, net		63,814			13,412			843			2,972			496
Realized gain/(loss) on foreign currency transactions		218			(211	)		(167	)		(96	)		100
Income tax (expense)/benefit		(215	)		(147	)		(1,136	)		(538	)		701
Other income/(expense)	$	64,021		$	12,884		$	(184	)	$	2,148		$	1,027

(1) Includes $15.8 million in unrealized gains that increased by $3.6 million after June 30, 2015.

(2) Construction loan revenue for the three months ended June 30, 2014 includes a prepayment fee of approximately $7.5 million, net of deferred loan fees write-offs.

FFO, CFFO AND AFFO (1)

JUNE 30, 2015

(In thousands)

	Three Months Ended															Six Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			6/30/15			6/30/14
Reconciliation of net income available to common stockholders to funds from operations excluding acquisition-related expenses (CFFO):
Net income available to common stockholders	$	23,578		$	17,345		$	140,349		$	15,960		$	18,636		$	40,923		$	37,469
Adjustments:
Gain on sale of real estate (2)		—			—			(136,609	)		—			—			—			—
Impairment of real estate (3)		35,071			—			—			—			—			35,071			—
Noncontrolling interests in operating partnership		613			457			3,782			429			514			1,070			1,035
Depreciation & amortization - unconsolidated partnerships		1,050			1,006			821			2,312			403			2,056			776
Depreciation & amortization - consolidated entities		61,272			67,080			64,744			64,452			62,736			128,352			125,145
Depreciation & amortization - allocable to noncontrolling interests of consolidated joint ventures		(773	)		(812	)		(847	)		(699	)		(599	)		(1,585	)		(1,040	)
Funds from operations (FFO) - basic	$	120,811		$	85,076		$	72,240		$	82,454		$	81,690		$	205,887		$	163,385
Interest expense - exchangeable senior notes due 2030 (4)		—			183			917			1,241			1,688			183			3,375
FFO - diluted	$	120,811		$	85,259		$	73,157		$	83,695		$	83,378		$	206,070		$	166,760
Acquisition-related expenses		1,100			464			960			487			1,134			1,564			2,384
CFFO - diluted	$	121,911		$	85,723		$	74,117		$	84,182		$	84,512		$	207,634		$	169,144
Reconciliation of CFFO to adjusted funds from operations (AFFO):
Adjustments:
Recurring capital expenditures and second generation tenant improvements		(21,600	)		(15,782	)		(22,591	)		(17,007	)		(21,553	)		(37,382	)		(29,284	)
Leasing commissions (5)		(2,205	)		(3,556	)		(2,078	)		(1,741	)		(1,929	)		(5,761	)		(3,839	)
Gain on extinguishment of debt		(15	)		—			—			—			—			(15	)		—
Non-cash debt adjustments		2,686			2,790			2,950			2,850			3,106			5,476			6,393
(Gain)/loss on derivative instruments		(189	)		170			(276	)		190			270			(19	)		108
Depreciation included in general and administrative expense		838			844			771			848			757			1,682			1,497
Non-cash equity compensation		3,347			8,007			4,625			3,658			3,729			11,354			7,479
Straight line rents		(5,889	)		(3,781	)		(1,941	)		(1,174	)		(1,949	)		(9,670	)		(5,143	)
Amortization of lease incentives		1,004			1,016			910			656			561			2,020			1,118
Fair-value lease revenue		(520	)		(471	)		(506	)		(184	)		(442	)		(991	)		(727	)
Deferred revenue (6)		520			343			395			379			311			863			590
Share of unconsolidated partnership adjustments (7)		(90	)		46			281			218			18			(44	)		36
Adjustments for noncontrolling interests		420			355			305			246			80			775			121
AFFO - diluted	$	100,218		$	75,704		$	56,962		$	73,121		$	67,471		$	175,922		$	147,493

(1) For definitions and discussion of FFO, CFFO and AFFO, see page 37.

(2) Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

(3) Includes impairment of King of Prussia property that was sold in May 2015.

(4) The calculations of FFO, CFFO and AFFO per share diluted include 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 calculations of FFO, CFFO and AFFO per diluted share.

(5) Leasing commissions associated with obtaining new or renewal leases are recorded at cost and amortized on a straight-line basis over the terms of the respective leases for AFFO purposes.

(6) Consists of rental cash receipts deferred for GAAP purposes.

(7) 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.

FFO, CFFO AND AFFO PER SHARE (1)

JUNE 30, 2015

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

	Three Months Ended															Six Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			6/30/15			6/30/14
FFO - basic	$	120,811		$	85,076		$	72,240		$	82,454		$	81,690		$	205,887		$	163,385
FFO - diluted		120,811			85,259			73,157			83,695			83,378			206,070			166,760
CFFO - diluted		121,911			85,723			74,117			84,182			84,512			207,634			169,144
AFFO - diluted		100,218			75,704			56,962			73,121			67,471			175,922			147,493
FFO per share - basic	$	0.58		$	0.41		$	0.36		$	0.41		$	0.41		$	0.99		$	0.82
FFO per share - diluted (2)		0.58			0.41			0.35			0.40			0.40			0.99			0.80
CFFO per share - diluted (2)		0.58			0.41			0.36			0.40			0.40			0.99			0.81
AFFO per share - diluted (2)		0.48			0.36			0.27			0.35			0.32			0.84			0.71
Dividends and distributions declared per common share (4)	$	0.26		$	0.26		$	0.26		$	0.25		$	0.25		$	0.52		$	0.50
CFFO payout ratio		44.8	%		63.4	%		72.2	%		62.5	%		62.5	%		52.5	%		61.7	%
AFFO payout ratio		54.2	%		72.2	%		96.3	%		71.4	%		78.1	%		61.9	%		70.4	%
CFFO payout ratio - trailing twelve months		58.9	%		65.0	%		64.3	%		64.1	%		66.6	%
AFFO payout ratio - trailing twelve months		70.1	%		77.9	%		75.9	%		73.0	%		75.2	%
Weighted-average common shares and units outstanding diluted (3)		208,969,199			208,039,538			202,850,109			201,059,541			198,309,809			208,506,938			198,183,803
Weighted-average common shares and units outstanding diluted - FFO, CFFO and AFFO		208,969,199			209,233,553			208,528,196			208,649,141			208,887,941			209,100,647			208,761,935

(1) For definitions and discussion of FFO, CFFO and AFFO, see page 37.

(2) The calculations of FFO, CFFO and AFFO per share diluted include 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 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 interest charges relating to calculations of FFO, CFFO and AFFO per diluted share.

(3) The three months ended June 30, 2015, March 31, 2015, September 30, 2014 and June 30, 2014 include 1,510,963, 1,503,390, 1,484,648, and 1,509,455 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share. The three months ended December 31, 2014 include 1,427,056 shares of unvested restricted stock which are considered dilutive for purposes of calculating diluted earnings per share. The six months ended June 30, 2015 and June 30, 2014 include 1,509,533 and 1,510,154 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

(4) Excludes the special dividend of $0.30 per share paid on December 29, 2014 to stockholders of record as of the close of business on December 22, 2014.

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (1)

JUNE 30, 2015

(In thousands)

	Three Months Ended
	6/30/15		3/31/15		12/31/14			9/30/14		6/30/14
Reconciliation of net income available to common stockholders to earnings before interest, taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA:
Net income available to common stockholders	$	23,578	$	17,345	$	140,349		$	15,960	$	18,636
Interest expense, net		19,315		21,395		21,924			22,215		23,131
Interest expense - unconsolidated partnerships		185		186		184			200		240
Income tax expense/(benefit)		215		147		1,136			538		(701	)
Depreciation & amortization - consolidated entities		61,272		67,080		64,744			64,452		62,736
Depreciation & amortization - unconsolidated partnerships		1,050		1,006		821			2,312		403
EBITDA		105,615		107,159		229,158			105,677		104,445
Noncontrolling interests (2)		613		458		3,783			426		495
Gain on sale of real estate (3)		—		—		(136,609	)		—		—
Impairment of real estate (4)		35,071		—		—			—		—
Executive severance		—		9,891		4,380			—		—
Adjusted EBITDA	$	141,299	$	117,508	$	100,712		$	106,103	$	104,940

(1) For definitions and discussion of EBITDA and Adjusted EBITDA, see page 37.

(2) Includes noncontrolling interests of operating partnership units, consolidated joint ventures with debt and investment in equity securities.

(3) Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

(4) Includes impairment of King of Prussia property that was sold in May 2015.

RECONCILIATION OF NET OPERATING INCOME (1)

JUNE 30, 2015

(In thousands, except ratio amounts)

	Three Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Net income	$	37,575		$	20,781		$	144,627		$	16,976		$	19,098
Equity in net (income)/loss of unconsolidated partnerships		(139	)		(153	)		(160	)		(733	)		10
Interest expense, net		19,315			21,395			21,924			22,215			23,131
Gain on sale of real estate (2)		—			—			(136,609	)		—			—
Impairment of real estate (3)		35,071			—			—			—			—
Other (income)/expense		(64,021	)		(12,884	)		184			(2,148	)		(1,027	)
Income from operations		27,801			29,139			29,966			36,310			41,212
Depreciation and amortization		61,272			67,080			64,744			64,452			62,736
General and administrative		12,531			12,789			12,162			12,768			12,443
Executive severance		—			9,891			4,380			—			—
Acquisition-related expenses		1,100			464			960			487			1,134
Consolidated net operating income	$	102,704		$	119,363		$	112,212		$	114,017		$	117,525
Revenues:
Rental	$	116,260		$	117,520		$	121,973		$	122,838		$	120,924
Tenant recoveries		41,573			43,956			40,753			42,626			40,280
Other revenue (4)		141			16,534			2,930			3,452			9,957
Total revenues		157,974			178,010			165,656			168,916			171,161
Expenses:
Rental operations		55,270			58,647			53,444			54,899			53,636
Consolidated net operating income (5)	$	102,704		$	119,363		$	112,212		$	114,017		$	117,525
Consolidated net operating income - cash basis (5) (6)	$	98,681		$	116,766		$	111,439		$	113,662		$	115,995
Operating expense recovery (7)		75.2	%		75.0	%		76.3	%		77.6	%		75.1	%

(1) For a definition and discussion of net operating income and net operating income - cash basis, see page 37.

(2) Includes gain on sale of 9911 Belward Campus Drive property in December 2014.

(3) Includes impairment of King of Prussia property that was sold in May 2015.

(4) Includes lease termination income, see page 11 for detail.

(5) For discussion of Net Operating Income and Net Operating Income - cash basis, see page 37.

(6) 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 + rental cash receipts deferred for GAAP purposes).

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

SAME PROPERTY ANALYSIS - THREE MONTHS ENDED

JUNE 30, 2015

(Dollars in thousands)

	Same Property (1)			Previous Same (2)		Total			Development (3)			New Properties (4)			Other (5)			Total
Three Months Ended	6/30/15			6/30/15		6/30/15			6/30/15			6/30/15			6/30/15			6/30/15
Rentable square feet		14,447,759			—		14,447,759			2,810,325			818,020			—			18,076,104
Percent of total portfolio		79.9	%		—		79.9	%		15.5	%		4.5	%		—			100.0	%
Percent leased		90.6	%		—		90.6	%		78.2	%		76.7	%		—			88.1	%
Revenues:
Rental	$	108,781		$	32	$	108,813		$	3,274		$	4,175		$	(2	)	$	116,260
Tenant recoveries		38,374			—		38,374			704			2,209			286			41,573
Other revenues		—			—		—			—			—			141			141
Total revenues		147,155			32		147,187			3,978			6,384			425			157,974
Expenses:
Rental operations		50,047			—		50,047			2,244			2,691			288			55,270
Net operating income / (loss) (8)	$	97,108		$	32	$	97,140		$	1,734		$	3,693		$	137		$	102,704
Less adjustments to cash basis (7)		(2,623	)		—		(2,623	)		(1,064	)		(347	)		11			(4,023	)
Net operating income - cash basis (8)	$	94,485		$	32	$	94,517		$	670		$	3,346		$	148		$	98,681
Rental revenue - cash basis (8)	$	103,991		$	32	$	104,023		$	2,046		$	3,828		$	8		$	109,905
	Same Property (1)			Previous Same (2)		Total			Development (3)			New Properties (4)			Other (5)			Total
Three Months Ended	6/30/14			6/30/14		6/30/14			6/30/14			6/30/14			6/30/14			6/30/14
Rentable square feet		14,447,759			107,231		14,554,990			1,409,960			518,940			—			16,483,890
Percent of total portfolio		87.6	%		—		88.3	%		8.6	%		3.1	%		—			100.0	%
Percent leased		89.6	%		—		89.5	%		83.4	%		98.7	%		—			87.3	%
Revenues:
Rental	$	111,284		$	791	$	112,075		$	5		$	2,631		$	6,213		$	120,924
Tenant recoveries		37,786			219		38,005			—			1,901			374			40,280
Other revenues (6)		—			—		—			—			—			9,957			9,957
Total revenues		149,070			1,010		150,080			5			4,532			16,544			171,161
Expenses:
Rental operations		48,282			517		48,799			595			2,162			2,080			53,636
Net operating income / (loss) (8)	$	100,788		$	493	$	101,281		$	(590	)	$	2,370		$	14,464		$	117,525
Less adjustments to cash basis (7)		(1,824	)		623		(1,201	)		160			(129	)		(360	)		(1,530	)
Net operating income - cash basis (8)	$	98,964		$	1,116	$	100,080		$	(430	)	$	2,241		$	14,104		$	115,995
Rental revenue - cash basis (8)	$	108,263		$	1,414	$	109,677		$	5		$	2,502		$	5,853		$	118,037
Rental Revenues - GAAP basis		(2.2	%)		—		(2.9	%)
Rental Revenues - Cash basis (9)		(3.9	%)		—		(5.2	%)
NOI - GAAP basis		(3.7	%)		—		(4.1	%)
NOI - Cash basis		(4.5	%)		—		(5.6	%)

(1) The Same Property portfolio includes properties in the operating portfolio that were not under development or redevelopment for any part of the quarter in both the current and the prior year.

(2) Properties previously included in same property portfolio in prior year quarters that are now in the Land Bank, comprised of 700 and 750 Gateway properties.

(3) Development includes properties that were entirely or primarily under active new construction during the quarter for the current or prior year.

(4) New Properties include properties that were not owned for the full quarter in the prior year.

(5) Other includes legal entities performing corporate level functions and properties that were sold during, or in between the comparative periods, which includes revenue and operating expenses relating to 9911 Belward Campus Drive, which was sold on December 9, 2014, and King of Prussia, which was sold on May 29, 2015.

(6) Includes construction loan revenue of $8.7 million and lease termination revenue of $1.0 million for the three months ended June 30, 2014.

(7) Adjustments to cash basis exclude adjustments to expenses accrued in rental operations, but include straight line rents, fair-value lease revenue, lease incentive revenue, bad debt expense and rental cash receipts deferred for GAAP purposes.

(8) For discussion of Net Operating Income and Net Operating Income - cash basis, see page 37.

(9) Rental revenues - cash basis calculated by adjusting for straight-line rents, lease incentives, fair value lease revenue and rental cash receipts deferred for GAAP purposes.

SAME PROPERTY ANALYSIS - SIX MONTHS ENDED

JUNE 30, 2015

(Dollars in thousands)

	Same Property (1)			Previous Same (2)		Total			Development (3)			New Properties (4)			Other (5)			Total
Six Months Ended	6/30/15			6/30/15		6/30/15			6/30/15			6/30/15			6/30/15			6/30/15
Rentable square feet		14,343,016			—		14,343,016			2,915,068			818,020			—			18,076,104
Percent of total portfolio		79.3	%		—		79.3	%		16.1	%		4.5	%		—			100.0	%
Percent leased		90.6	%		—		90.6	%		78.9	%		76.7	%		—			88.1	%
Revenues:
Rental	$	218,126		$	122	$	218,248		$	7,835		$	7,718		$	(21	)	$	233,780
Tenant recoveries		79,140			—		79,140			1,550			4,438			401			85,529
Other revenues (6)		—			—		—			—			—			16,675			16,675
Total revenues		297,266			122		297,388			9,385			12,156			17,055			335,984
Expenses:
Rental operations		100,762			—		100,762			4,636			5,164			3,355			113,917
Net operating income / (loss) (8)	$	196,504		$	122	$	196,626		$	4,749		$	6,992		$	13,700		$	222,067
Less adjustments to cash basis (7)		(4,556	)		—		(4,556	)		(1,867	)		(604	)		408			(6,619	)
Net operating income - cash basis (8)	$	191,948		$	122	$	192,070		$	2,882		$	6,388		$	14,108		$	215,448
Rental revenue - cash basis (9)	$	210,315		$	122	$	210,437		$	5,637		$	7,114		$	26		$	223,214
	Same Property (1)			Previous Same (2)		Total			Development (3)			New Properties (4)			Other (5)			Total
Six Months Ended	6/30/14			6/30/14		6/30/14			6/30/14			6/30/14			6/30/14			6/30/14
Rentable square feet		14,343,016			107,231		14,450,247			1,514,703			518,940			—			16,483,890
Percent of total portfolio		87.0	%		—		87.7	%		9.2	%		3.1	%		—			100.0	%
Percent leased		89.5	%		—		89.5	%		84.5	%		98.7	%		—			87.3	%
Revenues:
Rental	$	221,149		$	1,610	$	222,759		$	947		$	2,631		$	14,613		$	240,950
Tenant recoveries		75,354			424		75,778			—			1,901			1,336			79,015
Other revenues (6)		—			—		—			—			—			20,072			20,072
Total revenues		296,503			2,034		298,537			947			4,532			36,021			340,037
Expenses:
Rental operations		96,596			1,004		97,600			1,207			2,162			5,190			106,159
Net operating income / (loss) (8)	$	199,907		$	1,030	$	200,937		$	(260	)	$	2,370		$	30,831		$	233,878
Less adjustments to cash basis (7)		(4,392	)		1,242		(3,150	)		158			(129	)		(625	)		(3,746	)
Net operating income - cash basis (8)	$	195,515		$	2,272	$	197,787		$	(102	)	$	2,241		$	30,206		$	230,132
Rental revenue - cash basis (9)	$	213,838		$	2,853	$	216,691		$	792		$	2,502		$	13,988		$	233,973
Rental Revenues - GAAP basis		(1.4	%)		—		(2.0	%)
Rental Revenues - Cash basis (9)		(1.6	%)		—		(2.9	%)
NOI - GAAP basis		(1.7	%)		—		(2.1	%)
NOI - Cash basis		(1.8	%)		—		(2.9	%)

(1) The Same Property portfolio includes properties in the operating portfolio that were not under development or redevelopment for any part of the six months ended June 30, 2015 and June 30, 2014.

(2) Properties previously included in same property portfolio in the six months ended June 30, 2014 that are now in the Land Bank, comprised of 700 and 750 Gateway properties.

(3) Development includes properties that were entirely or primarily under active new construction during the six months ended June 30, 2015 or June 30, 2014.

(4) New Properties include properties that were not owned for the six months ended June 30, 2014.

(5) Other includes legal entities performing corporate level functions and properties that were sold during, or in between the comparative periods, which includes revenue and operating expenses relating to 9911 Belward Campus Drive, which was sold on December 9, 2014, and King of Prussia, which was sold on May 29, 2015.

(6) Includes lease termination revenue of $16.2 million and $6.5 million in the six months ended June 30, 2015 and June 30, 2014, respectively. Also includes construction loan revenue of $11.4 million in the six months ended June 30, 2014, net of deferred loan fees write-offs.

(7) Adjustments to cash basis exclude adjustments to expenses accrued in rental operations, but include straight line rents, fair-value lease revenue, lease incentive revenue, bad debt expense and rental cash receipts deferred for GAAP purposes.

(8) For discussion of Net Operating Income and Net Operating Income - cash basis, see page 37.

(9) Rental revenues - cash basis calculated by adjusting for straight-line rents, lease incentives, fair value lease revenue and rental cash receipts deferred for GAAP purposes.

INTEREST EXPENSE & COVERAGE RATIOS (1)

JUNE 30, 2015

(In thousands, except ratio amounts)

	Three Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Mortgage notes payable	$	6,293		$	6,220		$	6,253		$	6,156		$	5,982
Exchangeable senior notes		—			183			917			1,241			1,688
Unsecured senior notes		12,991			12,959			12,959			12,959			12,288
Unsecured senior term loan		1,705			1,653			1,717			1,785			1,791
Unsecured line of credit		1,997			1,577			1,786			1,793			2,112
Line of credit fees		455			450			460			460			471
Derivative instruments		883			844			860			895			923
Preferred returns on tax credits		496			1,500			165			196			193
Interest expense - cash basis	$	24,820		$	25,386		$	25,117		$	25,485		$	25,448
Non-cash interest expense:
Amortization of fair-value of debt acquired		(565	)		(569	)		(548	)		(665	)		(631	)
Amortization of debt discounts		358			351			331			327			302
Amortization of deferred loan costs		1,183			1,214			1,433			1,451			1,707
Amortization of deferred interest costs		1,656			1,662			1,670			1,677			1,684
Amortization of put/call		54			132			64			60			44
Non-cash debt adjustments		2,686			2,790			2,950			2,850			3,106
Capitalized interest		(8,191	)		(6,781	)		(6,143	)		(6,120	)		(5,423	)
Interest expense, net	$	19,315		$	21,395		$	21,924		$	22,215		$	23,131
Interest coverage ratio
Adjusted EBITDA	$	141,299		$	117,508		$	100,712		$	106,103		$	104,940
Interest expense:
Interest expense, net		19,315			21,395			21,924			22,215			23,131
Interest expense - unconsolidated partnerships		185			186			184			200			240
Amortization of deferred interest costs		(1,655	)		(1,662	)		(1,670	)		(1,677	)		(1,684	)
Amortization of deferred loan costs		(1,183	)		(1,214	)		(1,433	)		(1,451	)		(1,707	)
Amortization of debt discounts		(358	)		(351	)		(331	)		(327	)		(302	)
Amortization of fair-value of debt acquired		565			569			548			665			631
Total interest expense	$	16,869		$	18,923		$	19,222		$	19,625		$	20,309
Interest coverage ratio		8.4			6.2			5.2			5.4			5.2
Interest coverage ratio - trailing twelve months		6.2			5.5			5.0			4.7			4.3
Fixed charge coverage ratio
Adjusted EBITDA	$	141,299		$	117,508		$	100,712		$	106,103		$	104,940
Fixed charges:
Interest expense, net		19,315			21,395			21,924			22,215			23,131
Interest expense - unconsolidated partnerships		185			186			184			200			240
Amortization of deferred interest costs		(1,655	)		(1,662	)		(1,670	)		(1,677	)		(1,684	)
Amortization of deferred loan costs		(1,183	)		(1,214	)		(1,433	)		(1,451	)		(1,707	)
Amortization of debt discounts		(358	)		(351	)		(331	)		(327	)		(302	)
Amortization of fair-value of debt acquired		565			569			548			665			631
Principal payments		2,499			2,514			2,080			2,020			1,977
Total fixed charges	$	19,368		$	21,437		$	21,302		$	21,645		$	22,286
Fixed charge coverage ratio		7.3			5.5			4.7			4.9			4.7
Fixed charge coverage ratio - trailing twelve months		5.6			5.0			4.6			4.2			3.9

(1) For a discussion of coverage ratios, see page 37.

CAPITAL STRUCTURE

JUNE 30, 2015

(In thousands, except per share amounts)

Consolidated Debt	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Mortgage notes payable, net	$	488,945		$	503,200		$	496,757		$	478,543		$	456,034
Exchangeable senior notes, net		—			—			95,678			95,678			180,000
Unsecured senior notes, net		1,294,614			1,294,255			1,293,903			1,293,572			1,293,246
Unsecured senior term loans		750,856			741,626			749,326			755,876			764,106
Unsecured line of credit		369,000			226,000			84,000			229,000			155,000
Total Debt		2,903,415			2,765,081			2,719,664			2,852,669			2,848,386
Premium on consolidated debt, net		(6,342	)		(6,551	)		(6,764	)		(6,983	)		(7,323	)
Total Consolidated Debt	$	2,897,073		$	2,758,530		$	2,712,900		$	2,845,686		$	2,841,063

Equity	6/30/15		3/31/15		12/31/14		9/30/14		6/30/14
Closing share price	$	19.34	$	22.66	$	21.54	$	20.20	$	21.83
Total common shares and units outstanding		208,966		208,968		202,847		202,860		197,931
Total Equity Value	$	4,041,402	$	4,735,215	$	4,369,337	$	4,097,785	$	4,320,839
Total consolidated debt		2,897,073		2,758,530		2,712,900		2,845,686		2,841,063
Total Market Capitalization	$	6,938,475	$	7,493,745	$	7,082,237	$	6,943,471	$	7,161,902

	Three Months Ended
Summary of Common Shares	6/30/15		3/31/15		12/31/14		9/30/14		6/30/14
Earnings per share
Weighted-average common shares outstanding		202,055		200,790		196,018		194,023		191,003
Weighted-average OP and LTIP units outstanding		5,399		5,405		5,405		5,405		5,405
Dilutive effect of performance units		4		341		—		147		392
Dilutive effect of restricted stock		—		—		1,427		—		—
Dilutive effect of exchangeable senior notes due 2030		—		—		5,678		—		—
Diluted common shares - EPS		207,458		206,536		208,528		199,575		196,800
Funds from operations
Weighted-average common shares outstanding		202,055		200,790		196,018		194,023		191,003
Weighted-average OP and LTIP units outstanding		5,399		5,405		5,405		5,405		5,405
Dilutive effect of performance units		4		341		—		147		392
Dilutive effect of restricted stock		1,511		1,503		1,427		1,485		1,509
Dilutive effect of exchangeable senior notes due 2030		—		1,194		5,678		7,590		10,579
Diluted common shares - FFO		208,969		209,234		208,528		208,649		208,888

DEBT SUMMARY

JUNE 30, 2015

(Dollars in thousands)

									Unamortized
	Stated			Effective			Principal		Premium /			Carrying		Maturity
	Rate			Rate			Balance		(Discount)			Value		Date
Consolidated Debt:
Mortgage Notes Payable:
9900 Belward Campus Drive		5.64	%		3.99	%	$	10,410	$	356		$	10,766		07/17
9901 Belward Campus Drive		5.64	%		3.99	%		12,819		436			13,255		07/17
100 College Street		2.40	%		2.40	%		101,847		—			101,847		08/16
300 George Street		6.20	%		4.91	%		44,172		3,464			47,636		07/25
Hershey Center for Applied Research		6.15	%		4.71	%		12,663		1,202			13,865		05/27
500 Kendall Street (Kendall D)		6.38	%		5.45	%		53,535		1,368			54,903		12/18
Shady Grove Road		5.97	%		5.97	%		140,106		—			140,106		09/16
University of Maryland BioPark I		5.93	%		4.69	%		15,682		1,221			16,903		05/25
University of Maryland BioPark II		5.20	%		4.33	%		61,364		3,233			64,597		09/21
University of Maryland BioPark Garage		5.20	%		4.33	%		4,619		243			4,862		09/21
University of Miami Life Science & Technology Park		4.00	%		2.89	%		20,000		205			20,205		02/16
Total / Weighted-Average on Mortgage Notes Payable		5.07	%		4.52	%		477,217		11,728			488,945
Unsecured Fixed Rate Debt:
Unsecured Senior Notes Due 2016		3.85	%		3.99	%		400,000		(431	)		399,569		04/16
Unsecured Senior Notes Due 2019		2.63	%		2.72	%		400,000		(1,903	)		398,097		05/19
Unsecured Senior Notes Due 2020		6.13	%		6.27	%		250,000		(1,425	)		248,575		04/20
Unsecured Senior Notes Due 2022		4.25	%		4.36	%		250,000		(1,627	)		248,373		07/22
Unsecured Variable Rate Debt:
Unsecured Senior Term Loan Due 2017 - U.S. Dollar (1)		1.59	%		2.39	%		243,596		—			243,596		03/17
Unsecured Senior Term Loan Due 2017 - GBP (2)		1.91	%		2.14	%		157,260		—			157,260		03/17
Unsecured Senior Term Loan Due 2018 (3)		1.38	%		1.68	%		350,000		—			350,000		03/18
Unsecured Line of Credit (4)		1.28	%		1.28	%		369,000		—			369,000		03/18
Total / Weighted-Average on Consolidated Debt		3.19	%		3.27	%	$	2,897,073	$	6,342		$	2,903,415
Share of Unconsolidated Partnership Debt:
BioPark Fremont (50%) (fixed)		2.44	%		2.69	%		1,422		6			1,428		05/17
PREI Secured Loan (20%) (variable) (5)		2.24	%		2.24	%		27,795		—			27,795		08/20
Total / Weighted-Average on Share of Unconsolidated Partnership Debt		2.25	%		2.26	%		29,217		6			29,223
Total / Weighted-Average on Consolidated and Share of Unconsolidated Partnership Debt		3.18	%		3.26	%	$	2,926,290	$	6,348		$	2,932,638

(1) The Company entered into interest rate swap agreements that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due 2017 at 2.56% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings. Including the effect of these swaps, the weighted-average effective interest rate for the $243.6 million outstanding under the unsecured senior term loan facility due 2017 was 2.39% at June 30, 2015.

(2) The Company amended the unsecured senior term loan facility and converted $156.4 million of outstanding borrowings into British pounds sterling equal to £100 million. The principal balance represents the dollar amount based on the exchange rate of 1.5726 to £1.00 at the end of the quarter. The Company entered into interest rate swap agreements that effectively fix the interest rate on £100 million at 2.14% for the remaining term of the loan, subject to adjustments based on the Company’s credit ratings.

(3) The Company entered into interest rate swap agreements effective October 1, 2013 that effectively fix the interest rate on $200 million of the unsecured senior term loan facility due Including the effect of these swaps, the weighted-average effective interest rate for the $350.0 million outstanding under the unsecured senior term loan facility due 2018 was 1.68% at June 30, 2015.

(4) Effective rate excludes facility fee of 20 bps on the entire capacity of the unsecured line of credit, which equals approximately $450,000 per quarter.

(5) In July 2015, the wholly-owned subsidiary of PREI I LLC refinanced this secured loan facility into a new secured loan with a principal amount of $160 million, with the company’s pro-rata share being $32 million (20%), and a maturity date of August 1, 2020 (with two options to extend the maturity date for one year each).

DEBT ANALYSIS

JUNE 30, 2015

(Dollars in thousands)

Credit Ratings	Rating		Outlook
Standard & Poors		BBB		Stable
Moody’s Investors Service		Baa2		Stable

	Principal		Percentage			Wtd. -Avg.			Wtd. - Avg.
Variable and Fixed Rate Debt	Balance		of Total			Stated Rate			Effective Rate
Fixed Rate Debt	$	1,681,712		57.9	%		4.40	%		4.33	%
Variable Rate Debt - Hedged
Unsecured Senior Term Loan Due 2017 - U.S. Dollar	$	200,000		6.9	%		1.59	%		2.56	%
Unsecured Senior Term Loan Due 2017 - GBP		157,260		5.4	%		1.91	%		2.14	%
Unsecured Senior Term Loan Due 2018		200,000		6.9	%		1.38	%		1.90	%
Subtotal / Weighted-Average on Variable Rate Debt - Hedged	$	557,260		19.2	%		1.60	%		2.21	%
Variable Rate Debt - Unhedged
Variable Rate Mortgages	$	101,847		3.5	%		2.40	%		2.40	%
Unsecured Senior Term Loan Due 2017 - U.S. Dollar		43,596		1.5	%		1.59	%		1.59	%
Unsecured Senior Term Loan Due 2018		150,000		5.2	%		1.38	%		1.38	%
Unsecured Line of Credit		369,000		12.7	%		1.28	%		1.28	%
Subtotal / Weighted-Average on Variable Rate Debt - Unhedged	$	664,443		22.9	%		1.49	%		1.49	%
Total / Weighted-Average on Consolidated Debt	$	2,903,415		100.0	%		3.19	%		3.27	%

Total Consolidated Debt		6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Secured debt / Total gross assets			6.6	%		6.9	%		7.0	%		6.7	%		6.5	%
Floating rate debt / Total debt			42.2	%		38.4	%		33.7	%		36.8	%		33.6	%
Adjusted floating rate debt / Total debt (1)			22.9	%		18.5	%		13.2	%		17.0	%		13.5	%
Unencumbered real estate / Total real estate			90.1	%		90.2	%		85.7	%		86.1	%		86.3	%
Unencumbered CABR / Total CABR (2)			83.8	%		82.6	%		82.9	%		83.4	%		83.2	%
Unsecured line of credit capacity		$	531,000		$	674,000		$	816,000		$	671,000		$	745,000
Net Debt / Adjusted EBITDA (4)			5.0			5.7			6.5			6.6			6.7
Net Debt / Adjusted EBITDA - trailing twelve months			6.1			6.2			6.2			6.6			6.8
Bond Covenants (3)	Requirements
Total outstanding debt / Total assets	Must be < 60%		40.2	%		38.6	%		39.1	%		40.7	%		41.5	%
Secured debt / Total assets	Must be < 40%		6.8	%		7.0	%		7.1	%		6.8	%		6.6	%
Consolidated income available for debt service / Annual debt service charge	Must be > 1.5X		4.2			4.5			4.2			4.3			4.0
Unencumbered assets / Unsecured debt - Notes due 2020	Must be > 150%		254	%		264	%		260	%		246	%		240	%
Unencumbered assets / Unsecured debt - Notes due 2016, 2019 and 2022	Must be > 150%		253	%		263	%		259	%		244	%		239	%

(1) Includes effect of interest rate swaps on the Company’s unsecured senior term loan facilities. See page 21 for more information.

(2) For current annualized base rent (CABR) by market, see page 31.

(3) For discussion on bond covenants, see page 38.

(4) Adjusted EBITDA is calculated by adding to EBITDA: (a) noncontrolling interests in our operating partnership, (b) non-cash adjustments for securities, (c) losses from sales of real estate, and (d) executive severance, and by subtracting from EBITDA gains from sales of real estate, on an annualized basis.

DEBT MATURITIES

JUNE 30, 2015

(In thousands)

Weighted-average debt maturity is 3.2 years for consolidated debt (excluding extension options).

	2015		2016		2017		2018		2019		2020		Thereafter		Total
Consolidated debt:
Mortgage notes payable:
Principal amortization	$	5,326	$	10,760	$	9,796	$	9,852	$	5,724	$	6,139	$	29,332	$	76,929
Maturity payments		—		259,496		22,510		37,952		—		—		80,330	$	400,288
Total mortgage notes payable		5,326		270,256		32,306		47,804		5,724		6,139		109,662		477,217
Unsecured debt:
Unsecured senior notes due 2016		—		400,000		—		—		—		—		—		400,000
Unsecured senior notes due 2019		—		—		—		—		400,000		—		—		400,000
Unsecured senior notes due 2020		—		—		—		—		—		250,000		—		250,000
Unsecured senior notes due 2022		—		—		—		—		—		—		250,000		250,000
Unsecured senior term loan due 2017 - U.S. Dollar		—		—		243,596		—		—		—		—		243,596
Unsecured senior term loan due 2017 - GBP		—		—		157,260		—		—		—		—		157,260
Unsecured senior term loan due 2018		—		—		—		350,000		—		—		—		350,000
Unsecured line of credit		—		—		—		369,000		—		—		—		369,000
Total unsecured debt		—		400,000		400,856		719,000		400,000		250,000		250,000		2,419,856
Total consolidated debt	$	5,326	$	670,256	$	433,162	$	766,804	$	405,724	$	256,139	$	359,662	$	2,897,073
Share of unconsolidated partnership debt:
BioPark Fremont (50%) (fixed)		—		—		1,422		—		—		—		—		1,422
PREI secured loan (20%) (variable) (1)		—		—		—		—		—		27,795		—		27,795
Share of total unconsolidated partnership debt	$	—	$	—	$	1,422	$	—	$	—	$	27,795	$	—	$	29,217
Total consolidated and share of unconsolidated partnership debt	$	5,326	$	670,256	$	434,584	$	766,804	$	405,724	$	283,934	$	359,662	$	2,926,290

(1) In July 2015, the wholly-owned subsidiary of PREI I LLC refinanced this secured loan facility into a new secured loan with a principal amount of $160 million, with the company’s pro-rata share being $32 million (20%), and a maturity date of August 1, 2020 (with two options to extend the maturity date for one year each).

MARKET SUMMARY

JUNE 30, 2015

				Current (1)							Expiration (2)									GAAP
Market	Leased Square Feet			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			Annualized Base Rent			Annualized Base Rent per Leased Sq Ft
				(In thousands)							(In thousands)									(In thousands)
Boston		2,971,887		$	172,235		30.9	%	$	57.95	$	185,143			28.5	%	$	62.30		$	168,646		$	56.75
San Francisco		2,865,129			73,832		13.2	%		25.77		90,775			14.0	%		31.68			77,262			26.97
San Diego		1,888,472			64,196		11.5	%		33.99		79,346			12.2	%		42.02			66,187			35.05
New York		1,757,321			59,859		10.7	%		34.06		73,177			11.3	%		41.64			63,186			35.96
Maryland		1,587,548			50,209		9.0	%		31.63		58,414			9.0	%		36.80			51,059			32.16
Cambridge, UK		667,425			24,791		4.4	%		37.14		24,968			3.8	%		37.41			24,949			37.38
North Carolina		1,226,727			22,235		4.0	%		18.13		28,676			4.4	%		23.38			26,484			21.59
Pennsylvania		745,755			19,476		3.5	%		26.12		24,403			3.8	%		32.72			21,262			28.51
Seattle		458,807			18,391		3.3	%		40.08		23,166			3.6	%		50.49			19,923			43.42
University Related (3)		2,103,069			52,800		9.5	%		25.11		62,123			9.4	%		29.54			58,443			27.79
Total portfolio		16,272,140		$	558,024		100.0	%	$	34.29	$	650,191			100.0	%	$	39.96		$	577,401		$	35.48
	Active New			Active		Unconsolidated
	Construction			Redevelopment		Partnership					Total Operating Portfolio
Percent Leased by Market	(4)			(4)		Portfolio (5)					6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Boston		—			—		99.9	%				87.1	%		86.0	%		96.5	%		99.2	%		98.9	%
San Francisco		100.0	%		—		—					87.6	%		86.1	%		81.4	%		83.7	%		81.2	%
San Diego		—			—		100.0	%				94.6	%		94.0	%		93.6	%		92.7	%		92.5	%
New York		100.0	%		—		—					98.0	%		86.8	%		86.8	%		86.8	%		86.8	%
Maryland		—			—		—					93.9	%		91.7	%		92.1	%		95.4	%		93.7	%
Cambridge, UK		100.0	%		—		—					99.6	%		99.5	%		99.5	%		99.5	%		99.5	%
North Carolina		67.5	%		—		—					98.3	%		98.3	%		97.0	%		92.9	%		92.9	%
Pennsylvania		—			—		—					84.5	%		83.0	%		75.9	%		75.9	%		71.2	%
Seattle		37.8	%		—		—					84.6	%		84.2	%		72.9	%		69.7	%		69.7	%
University Related (3)		99.1	%		—		—					90.1	%		91.9	%		91.3	%		91.2	%		90.6	%
Total portfolio		75.0	%		—		99.9	%				91.0	%		89.2	%		89.6	%		90.6	%		89.9	%

(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 Wexford and BioMed properties not located in a core market. See page 26 for property listing.

(4) See pages 24 - 26 for detail of the consolidated portfolio and page 38 for definitions of terms.

(5) See page 27 for detail of the unconsolidated partnership portfolio.

PROPERTY LISTING

JUNE 30, 2015

		Excluded from		Rentable Square Feet								Leased Square Feet
		Same Property Analysis				Active New		Active						Percent Leased (1)
	Property	3 months	6 months	Land Bank		Constr- uction		Redeve- lopment		Operating Portfolio				6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
	Boston
1	Albany Street				—		—		—		75,003		75,003		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
2	320 Bent Street				—		—		—		195,198		195,137		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
3	301 Binney Street				—		—		—		417,290		417,290		100.0	%		100.0	%		79.7	%		98.8	%		96.7	%
4	301 Binney Street Garage				—		—		—		528 Stalls		n/a		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
5	210 Broadway				—		—		—		64,812		64,812		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
6	Center for Life Science | Boston				—		—		—		704,159		704,159		100.0	%		100.0	%		98.9	%		98.9	%		98.9	%
7	Charles Street				—		—		—		47,912		47,912		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
8	320 Charles Street				—		—		—		99,513		99,513		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
9	Coolidge Avenue				—		—		—		37,684		34,580		91.8	%		91.8	%		91.8	%		91.8	%		91.8	%
10	21 Erie Street				—		—		—		48,627		28,019		57.6	%		57.6	%		100.0	%		100.0	%		100.0	%
11	40 Erie Street				—		—		—		100,854		—		—			—			100.0	%		100.0	%		100.0	%
12	47 Erie Street Parking Structure				—		—		—		447 Stalls		n/a		28.2	%		28.2	%		73.2	%		73.2	%		72.0	%
13	Fresh Pond Research Park				—		—		—		90,702		89,176		98.3	%		98.3	%		98.3	%		98.3	%		98.3	%
14	50 Hampshire Street				—		—		—		200,360		103,694		51.8	%		51.8	%		100.0	%		100.0	%		100.0	%
15	60 Hampshire Street				—		—		—		41,257		41,257		100.0	%		86.5	%		86.5	%		86.5	%		86.5	%
16	Kendall Crossing Apartments				—		—		—		37 Apts.		n/a		97.3	%		97.3	%		94.7	%		97.6	%		100.0	%
17	450 Kendall Street (Kendall G)	ü	ü		—		—		—		63,520		31,309		49.3	%		22.8	%		22.8	%		—			—
18	500 Kendall Street (Kendall D)				—		—		—		349,325		346,535		99.2	%		99.2	%		99.2	%		98.5	%		98.5	%
19	675 W. Kendall Street (Kendall A)				—		—		—		302,919		302,919		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
20	Sidney Street				—		—		—		188,614		47,740		25.3	%		—			100.0	%		100.0	%		100.0	%
21	Vassar Street				—		—		—		60,845		60,845		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Total Boston				—		—		—		3,088,594		2,689,900		87.1	%		84.7	%		95.0	%		97.0	%		96.7	%
	San Francisco
22	Ardentech Court				—		—		—		55,588		55,588		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
23	Ardenwood Venture (2)				—		—		—		72,500		72,500		100.0	%		100.0	%		100.0	%		100.0	%		83.2	%
24	Bayshore Boulevard				—		—		—		183,344		183,344		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
25	Bridgeview Technology Park I				—		—		—		201,567		128,676		63.8	%		66.8	%		52.9	%		52.9	%		52.9	%
26	Bridgeview Technology Park II				—		—		—		50,400		50,400		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
27	550 Broadway Street				—		—		—		71,239		71,239		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
28	Dumbarton Circle				—		—		—		44,000		44,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
29	Eccles Avenue	ü	ü		265,000		—		—		—		—		—			—			—			—			—
30	Gateway Business Park				770,000		—		—		69,272		69,272		100.0	%		62.8	%		43.2	%		82.2	%		82.2	%
31	Gateway Business Park II	ü	ü		650,000		—		—		—		—		—			—			—			—			—
32	Industrial Road				—		—		—		175,144		175,144		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
33	Kaiser Drive				—		—		—		87,953		71,215		81.0	%		81.0	%		81.0	%		81.0	%		81.0	%
34	Lincoln Centre	ü	ü		160,000		360,000		—		—		360,000		100.0	%		100.0	%		100.0	%		—			—
35	Pacific Industrial Center				—		—		—		305,026		262,124		85.9	%		86.4	%		86.4	%		85.9	%		85.9	%
36	Pacific Research Center North				—		—		—		661,245		582,649		88.1	%		83.7	%		79.2	%		79.2	%		79.2	%
37	Pacific Research Center South				400,000		—		—		423,246		296,525		70.1	%		70.1	%		62.3	%		62.3	%		62.3	%
38	Science Center at Oyster Point				—		—		—		204,887		204,887		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
39	Woodside Technology Park				—		—		—		255,650		237,566		92.9	%		100.0	%		100.0	%		100.0	%		76.1	%
	Total San Francisco				2,245,000		360,000		—		2,861,061		2,865,129		88.9	%		87.6	%		83.5	%		83.7	%		81.2	%
	San Diego
40	Balboa Avenue				—		—		—		35,344		35,344		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
41	Bernardo Center Drive				—		—		—		61,286		61,286		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
42	Coast 9				—		—		—		162,074		160,160		98.8	%		96.7	%		84.6	%		84.6	%		84.6	%
43	4570 Executive Drive				—		—		—		125,219		125,219		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
44	Faraday Avenue				—		—		—		28,704		28,704		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
45	Gazelle Court				—		—		—		176,000		176,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

PROPERTY LISTING

JUNE 30, 2015

		Excluded from		Rentable Square Feet								Leased
		Same Property Analysis		Land		Active New		Active		Operating		Square		Percent Leased (1)
	Property	3 months	6 months	Bank		Construction		Redevelopment		Portfolio		Feet		6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
	San Diego (Continued)
46	i3	ü	ü		—		316,000		—		—		—		—			—			—			—			—
47	3525 John Hopkins Court				—		—		—		48,306		48,306		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
48	3545-3575 John Hopkins Court				—		—		—		72,192		72,192		100.0	%		84.7	%		84.7	%		87.9	%		87.2	%
49	6114-6154 Nancy Ridge Drive				—		—		—		196,557		196,557		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
50	6122-6126 Nancy Ridge Drive				—		—		—		68,000		68,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
51	6828 Nancy Ridge Drive				—		—		—		42,138		42,138		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
52	Pacific Center Boulevard				—		—		—		66,745		66,745		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
53	Road to the Cure				—		—		—		67,998		48,248		71.0	%		71.0	%		100.0	%		100.0	%		100.0	%
54	San Diego Science Center				—		—		—		105,364		88,323		83.8	%		89.8	%		83.5	%		81.6	%		79.9	%
55	10240 Science Center Drive				—		—		—		49,347		49,347		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
56	10255 Science Center Drive				—		—		—		53,740		53,740		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
57	Sorrento Plaza				—		—		—		31,184		31,184		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
58	Sorrento Valley Boulevard				—		—		—		54,924		—		—			—			—			—			—
59	11388 Sorrento Valley Road				—		—		—		35,940		35,940		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
60	Summers Ridge				—		—		—		—		—		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
61	Torreyana Road				—		—		—		81,204		81,204		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
62	9865 Towne Centre Drive				—		—		—		94,866		94,866		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
63	9885 Towne Centre Drive				—		—		—		104,870		104,870		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
64	Towne Centre Technology Park	ü	ü		104,500		—		182,866		—		—		—			—			—			—			—
65	Waples Street				—		—		—		50,055		40,746		81.4	%		81.4	%		81.4	%		43.9	%		43.9	%
66	Wateridge Circle				—		—		—		106,490		106,490		100.0	%		95.6	%		95.6	%		95.6	%		95.6	%
	Total San Diego				104,500		316,000		182,866		1,918,547		1,815,609		75.1	%		80.7	%		93.6	%		92.7	%		92.5	%
	New York
67	Ardsley Park				50,000		—		—		209,283		187,785		89.7	%		89.4	%		89.4	%		89.4	%		89.4	%
68	Graphics Drive				—		—		—		69,406		68,397		98.5	%		64.2	%		64.2	%		64.2	%		64.2	%
69	Landmark at Eastview				273,000		—		—		800,671		793,038		99.0	%		81.5	%		81.5	%		81.5	%		81.5	%
70	Landmark at Eastview II				—		—		—		360,520		360,520		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
71	Landmark at Eastview III	ü	ü		—		297,000		—		—		297,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
72	One Research Way				—		—		—		50,581		50,581		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Total New York				323,000		297,000		—		1,490,461		1,757,321		98.3	%		89.0	%		89.0	%		89.0	%		89.0	%
	Maryland
73	Beckley Street				—		—		—		77,225		77,225		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
74	9900 Belward Campus Drive				—		—		—		49,317		41,816		84.8	%��		84.8	%		84.8	%		84.8	%		84.8	%
75	9901 Belward Campus Drive				—		—		—		57,152		57,110		99.9	%		99.9	%		99.9	%		99.9	%		99.9	%
76	9920 Belward Campus Drive				—		—		—		51,181		51,181		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
77	9704 Medical Center Drive				—		—		—		122,600		122,600		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
78	9708-9714 Medical Center Drive				—		—		—		92,125		50,075		54.4	%		54.4	%		54.2	%		54.2	%		17.4	%
79	1701 / 1711 Research Boulevard		ü		—		—		—		104,743		104,743		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
80	Shady Grove Road				500,000		—		—		635,058		635,058		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
81	Tributary Street				—		—		—		91,592		91,592		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
82	University of Maryland BioPark I				—		—		—		76,542		72,909		95.3	%		98.7	%		98.7	%		98.5	%		98.5	%
83	University of Maryland BioPark II				—		—		—		235,333		223,734		95.1	%		94.1	%		97.5	%		98.0	%		98.0	%
84	University of Maryland BioPark III	ü	ü		200,000		—		—		—		—		—			—			—			—			—
85	University of Maryland BioPark Garage				—		—		—		638 Stalls		n/a		66.5	%		100.0	%		100.0	%		100.0	%		100.0	%
86	50 West Watkins Mill Road				—		—		—		57,410		20,000		34.8	%		34.8	%		34.8	%		34.8	%		34.8	%
87	55 West Watkins Mill Road				—		—		—		39,505		39,505		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Total Maryland				700,000		—		—		1,689,783		1,587,548		93.9	%		91.7	%		92.1	%		95.4	%		93.7	%
	Cambridge, UK
88	Granta Park				138,000		—		—		472,234		470,015		99.5	%		99.5	%		99.5	%		99.5	%		99.5	%

PROPERTY LISTING

JUNE 30, 2015

		Excluded from		Rentable Square Feet								Leased Square Feet
		Same Property Analysis		Land Bank		Active New Construction		Active Redevelopment		Operating Portfolio				Percent Leased (1)
	Property	3 months	6 months											6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
	Cambridge, UK (Continued)
89	Granta Park II	ü	ü		—		155,000		—		—		155,000		100.0	%		—			—			—			—
90	430 Cambridge Science Park	ü	ü		—		—		—		42,410		42,410		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Total Cambridge, UK				138,000		155,000		—		514,644		667,425		99.7	%		99.6	%		99.6	%		99.6	%		99.6	%
	North Carolina
91	Chesterfield	ü	ü		—		284,462		—		—		100,000		35.2	%		—			—			—			—
92	Paramount Parkway				—		—		—		61,603		61,603		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
93	Patriot Drive				—		—		—		48,394		48,394		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
94	Piedmont Triad Research - Wake 90		ü		—		—		—		475,742		460,891		96.9	%		96.9	%		94.6	%		87.3	%		87.3	%
95	Wake 60	ü	ü		—		283,250		—		—		283,250		100.0	%		59.3	%		59.3	%		—			—
96	Wake Forest Biotech Place				—		—		—		242,000		242,000		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
97	Weston Parkway				—		—		—		30,589		30,589		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Total North Carolina				—		567,712		—		858,328		1,226,727		86.0	%		88.6	%		87.6	%		92.9	%		92.9	%
	Pennsylvania
98	Drexel	ü	ü		2,271,000		—		—		—		—		—			—			—			—			—
99	George Patterson Boulevard				—		—		—		71,500		71,500		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
100	Hershey Center for Applied Research				—		—		—		80,867		78,117		96.6	%		96.6	%		95.7	%		96.9	%		94.9	%
101	3711 Market Street (4)				—		—		—		154,793		147,476		95.3	%		95.3	%		96.2	%		95.5	%		95.5	%
102	3737 Market Street (3) (4)	ü	ü		—		—		—		334,305		334,305		100.0	%		100.0	%		82.4	%		82.4	%		80.8	%
103	Phoenixville Pike				—		—		—		104,400		48,181		46.2	%		41.8	%		41.8	%		41.8	%		37.5	%
104	Spring Mill Drive				—		—		—		76,561		66,176		86.4	%		86.4	%		80.5	%		80.5	%		82.5	%
105	1000 Uniqepma Boulevard				—		—		—		59,821		—		—			—			—			—			—
	Total Pennsylvania				2,271,000		—		—		882,247		745,755		84.5	%		83.0	%		75.9	%		75.9	%		74.8	%
	Seattle
106	Elliott Avenue				—		—		—		151,194		98,781		65.3	%		64.0	%		64.0	%		56.0	%		56.0	%
107	500 Fairview Avenue	ü	ü		—		122,702		—		—		46,407		37.8	%		37.8	%		37.8	%		20.5	%		20.5	%
108	530 Fairview Avenue				—		—		—		101,118		100,501		99.4	%		99.4	%		100.0	%		100.0	%		100.0	%
109	Monte Villa Parkway				—		—		—		51,000		30,167		59.2	%		59.2	%		59.2	%		59.2	%		59.2	%
110	Westlake	ü	ü		—		—		—		116,214		115,152		99.1	%		99.1	%		—			—			—
111	217th Place				50,000		—		—		67,799		67,799		100.0	%		100.0	%		62.9	%		100.0	%		62.9	%
	Total Seattle				50,000		122,702		—		487,325		458,807		75.2	%		74.9	%		64.2	%		57.5	%		57.5	%
	University Related
112	BRDG Park at Danforth Plant Science Center				—		—		—		109,731		71,286		65.0	%		90.6	%		90.6	%		90.6	%		85.0	%
113	100 College Street (5)	ü	ü		—		510,419		—		—		505,683		99.1	%		99.1	%		99.1	%		99.1	%		99.1	%
114	4320 Forest Park Avenue				—		—		—		152,403		152,403		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
115	300 George Street (5)	ü	ü		—		—		—		518,940		511,971		98.7	%		98.7	%		98.7	%		98.7	%		98.7	%
116	Heritage @ 4240		ü		—		—		—		185,207		166,623		90.0	%		90.0	%		89.0	%		89.0	%		89.0	%
117	Innovation Research Park at ODU I				—		—		—		95,634		82,699		86.5	%		90.0	%		90.0	%		90.0	%		90.0	%
118	Innovation Research Park at ODU II				—		—		—		95,634		78,472		82.1	%		82.7	%		82.7	%		82.7	%		75.8	%
119	311 South Sarah	ü	ü		300,000		—		—		—		—		—			—			—			—			—
120	Trade Centre Avenue				—		—		—		78,023		78,023		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
121	University of Miami Life Science & Technology Park				—		—		—		258,681		176,747		68.3	%		68.4	%		64.7	%		64.4	%		64.9	%
122	University Tech Park at IIT				—		—		—		129,178		129,178		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
123	Walnut Street				—		—		—		149,984		149,984		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
	Total University Related				300,000		510,419		—		1,773,415		2,103,069		92.1	%		93.5	%		93.0	%		93.0	%		92.5	%
	Total Consolidated Portfolio				6,131,500		2,328,833		182,866		15,564,405		15,917,290		88.1	%		87.3	%		89.2	%		90.2	%		89.3	%

PROPERTY LISTING

JUNE 30, 2015

		Excluded from		Rentable Square Feet								Leased Square Feet
		Same Property Analysis		Land		Active New		Active		Operating				Percent Leased (1)
	Property	3 months	6 months	Bank		Construction		Redevelopment		Portfolio				6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
	Unconsolidated Partnership Portfolio
124	BioPark Fremont	ü	ü		100,000		—		—		—		—		—			—			—			—			—
125	McKellar Court	ü	ü		—		—		—		72,863		72,863		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
126	350 E. Kendall Street Garage (Kendall F)	ü	ü		—		—		—		1,409 Stalls		n/a		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
127	650 E. Kendall Street (Kendall B)	ü	ü		—		—		—		282,217		281,987		99.9	%		99.9	%		99.9	%		99.9	%		71.5	%
	Total Unconsolidated Partnership Portfolio				100,000		—		—		355,080		354,850		99.9	%		99.9	%		99.9	%		99.9	%		77.3	%
	Total Portfolio				6,231,500		2,328,833		182,866		15,919,485		16,272,140		88.3	%		87.5	%		89.4	%		90.4	%		89.1	%

(1) Percentage leased excludes estimated square feet in the Land Bank.

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

(3) The Company owns 68% of the limited liability company that owns the 3737 Market Street property.

(4) The Company has entered into a joint development agreement to explore the potential acquisition of an estimated additional 2.1 million square feet next to the Market Street properties.

(5) The Company owns 93% of the limited liability companies that own the 300 George Street property. Upon completion of the project and debt repayment, the Company will own 97.5% of the limited liability company that owns the 100 College Street property.

DEVELOPMENT AND REDEVELOPMENT

JUNE 30, 2015

(Dollars in thousands)

Active Development: Property	Market	Rentable Square Feet		Pre-Leased Square Feet		Percent Pre-Leased			Investment to Date (1)		Cost to Complete		Estimated Total Investment (2)		Estimated In-Service Date (3)
Active New Construction:
100 College Street	University Related		510,419		505,683		99.1	%	$	134,200	$	56,800	$	191,000	Q3 2015
i3	San Diego		316,000		—		—			55,500		126,000		181,500	Q3 2017
Landmark at Eastview III	New York		297,000		297,000		100.0	%		159,400		17,100		176,500	Q4 2015
Lincoln Centre (4)	San Francisco		360,000		360,000		100.0	%		34,400		115,300		149,700	Q3 2017 & Q3 2018
Chesterfield	North Carolina		284,462		100,000		35.2	%		11,300		78,700		90,000	Q4 2017
500 Fairview Avenue	Seattle		122,702		46,407		37.8	%		26,400		48,100		74,500	Q1 2016
Granta Park II	Cambridge, UK		155,000		155,000		100.0	%		1,100		76,500		77,600	Q4 2017
Wake 60	North Carolina		283,250		283,250		100.0	%		14,500		40,800		55,300	Q3 2016
Total / weighted-average			2,328,833		1,747,340		75.0	%	$	436,800	$	559,300	$	996,100
Active Redevelopment: Property	Market	Rentable Square Feet		Leased Square Feet		Percent Leased			Investment to Date (1)		Cost to Complete		Estimated Total Investment (2)		Estimated In-Service Date (3)
Active Redevelopment:
Sidney Street/40 Erie Street	Boston		289,468		47,740		16.5	%	$	107,200	$	81,800	$	189,000	Q4 2015 - 2017
Towne Centre Technology Park (5)	San Diego		182,866		—		—			54,400		50,600		105,000	Q1 2016 - 2017
Total / weighted-average			472,334		47,740		10.1	%	$	161,600	$	132,400	$	294,000

Recently Delivered Development: Property	Market	Rentable Square Feet		Leased Square Feet		Percent Leased			Percent In-Service			Capitalized Interest (6)		In-Service Date
Recently Delivered Development:
430 Cambridge Science Park	United Kingdom		42,410		42,410		100.0	%		100.0	%	$	—	Q2 2015
450 Kendall Street (Kendall G)	Boston		63,520		31,309		49.3	%		22.8	%		288	Q2 2015
Total / weighted-average			105,930		73,719		69.6	%		53.7	%	$	288

(1) Includes amounts paid for acquiring the property, landlord improvements, tenant improvement allowances and any capitalized amounts related to payroll, interest, ground rent and operating expenses through June 30, 2015.

(2) Includes remaining forecasted landlord improvements, tenant improvement allowances and any capitalized costs related to interest, operating expenses, property taxes, payroll and ground rent. Includes 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. Upon completion, management expects the property to enter the Same Property Portfolio one year subsequent to the in-service date.

(4) Phase I of the project is comprised of 200,000 square feet and is estimated to be substantially completed in Q3 2017. Phase II comprising 160,000 square feet is estimated to be substantially completed in Q3 2018.

(5) Sidney Street and 40 Erie Street remain within the operating portfolio for lease reporting and Same Property purposes.

(6) Investment to date based on preliminary purchase price allocation for Towne Centre Technology Park acquired on May 5, 2015.

(7) Capitalized interest for the three months ended June 30, 2015.

CAPITAL EXPENDITURES

JUNE 30, 2015

(Dollars in thousands)

Capital Expenditures:			Three Months Ended
			6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Active new construction			$	75,710		$	33,619		$	69,530		$	73,264		$	70,640
Tax credit funding receipts, net of deferred costs				(3,332	)		—			(26,232	)		—			(22,557	)
Land bank				2,115			3,618			6,139			6,998			3,747
Active redevelopment				679			—			—			—			—
Tenant improvements - first generation (1)				17,972			14,534			10,386			13,304			8,614
Recurring capital expenditures and second generation tenant improvements (1) (2)				21,600			15,782			22,591			17,007			21,553
Other capital				13,321			3,200			5,093			10,454			5,292
Total capital expenditures			$	128,065		$	70,753		$	87,507		$	121,027		$	87,289
Capitalized Interest:	Investment		Three Months Ended
	to Date (3)		6/30/15			3/31/15			12/31/14			9/30/14			6/30/14
Active new construction	$	436,800	$	3,489		$	3,395		$	2,634		$	1,983		$	2,043
Active redevelopment		54,400		496			—			—			—			—
Recently delivered development projects (4)		30,649		288			129			373			738			282
Other portfolio improvements (5)		280,011		2,472			1,576			1,506			1,696			1,469
Land bank		118,729		1,446			1,681			1,630			1,703			1,629
Total	$	920,589	$	8,191		$	6,781		$	6,143		$	6,120		$	5,423
Average interest rate capitalized				3.81	%		3.95	%		3.96	%		3.97	%		3.94	%

(1) For definitions of first and second generation leases, see page 38.

(2) Includes amounts paid for acquiring the property, landlord improvements, tenant improvement allowances and capitalized costs of payroll, interest, ground rent, operating expenses, but excludes any amounts accrued through through June 30, 2015.

(3) Includes amounts paid for acquiring the property, landlord improvements and tenant improvement allowances, but for Active New Construction and Active Redevelopment properties excludes any amounts accrued, and payroll, interest or operating expenses capitalized, through June 30, 2015.

(4) Includes 450 Kendall Street (Kendall G) (Q2 2015), Heritage @4240 (Q4 2013), 3737 Market Street (Q2 2014) and Piedmont Triad Research - Wake 90 (Q4 2013). See page 28 for recently delivered projects during the quarter.

(5) Includes improvements on operating properties, including major tenant improvement projects on properties which are not considered to be in Active New Construction, Active Redevelopment or Land Bank during the three months ended June 30, 2015.

LEASE EXPIRATIONS

JUNE 30, 2015

The weighted-average remaining lease term is 8.8 years for the total portfolio.

						Current (1)							Expiration (2)							GAAP
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		Annualized Base Rent		Percent of Annualized Base Rent			Annualized Base Rent per Leased Square Feet
						(In thousands)							(In thousands)							(In thousands)
Month-to-month		63,481		0.4	%	$	1,044		0.2	%	$	16.45	$	1,044		0.2	%	$	16.45	$	1,046		0.2	%	$	16.48
Third quarter 2015		261,690		1.6	%		6,799		1.2	%		25.98		6,833		1.1	%		26.11		8,739		1.5	%		33.39
Fourth quarter 2015		107,371		0.7	%		3,278		0.6	%		30.53		3,298		0.5	%		30.72		3,119		0.5	%		29.05
2015		369,061		2.3	%		10,077		1.8	%		27.30		10,131		1.6	%		27.45		11,858		2.0	%		32.13
2016		674,216		4.1	%		23,515		4.2	%		34.88		23,908		3.7	%		35.46		22,702		3.9	%		33.67
2017		981,419		6.0	%		29,812		5.3	%		30.38		31,391		4.8	%		31.99		28,337		4.9	%		28.87
2018		1,896,097		11.7	%		83,102		14.9	%		43.83		85,817		13.2	%		45.26		76,820		13.3	%		40.51
2019		941,793		5.8	%		25,341		4.5	%		26.91		27,800		4.3	%		29.52		25,883		4.5	%		27.48
2020		1,087,535		6.7	%		33,345		6.0	%		30.66		37,277		5.7	%		34.28		33,400		5.8	%		30.71
2021		486,802		3.0	%		17,890		3.2	%		36.75		20,161		3.1	%		41.42		18,376		3.2	%		37.75
2022		374,265		2.3	%		11,259		2.0	%		30.08		13,414		2.1	%		35.84		11,916		2.1	%		31.84
2023		1,547,510		9.5	%		63,181		11.3	%		40.83		70,461		10.8	%		45.53		63,604		11.0	%		41.10
2024		670,076		4.1	%		22,144		4.0	%		33.05		26,489		4.1	%		39.53		22,994		4.0	%		34.32
Thereafter		7,179,885		44.1	%		237,314		42.6	%		33.05		302,298		46.4	%		42.10		260,465		45.1	%		36.28
Total / weighted- average		16,272,140		100.0	%	$	558,024		100.0	%	$	34.29	$	650,191		100.0	%	$	39.96	$	577,401		100.0	%	$	35.48

(1) Current annualized base rent (CABR) 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.

(3) For a definition of “forward leased”, see page 38.

EXPIRATIONS BY MARKET

JUNE 30, 2015

	Leased Square Feet
Expiration	Boston		San Francisco		San Diego		New York		Maryland		Cambridge, UK		North Carolina		Pennsylvania		Seattle		University Related		Total
Month-to-month		—		—		728		6,230		19,797		1,038		—		1,014		—		34,674		63,481
2015		35,641		45,452		117,084		8,981		10,136		21,576		16,492		31,623		—		82,076		369,061
2016		113,624		246,012		58,756		115,603		33,237		1,103		30,589		25,834		14,124		35,334		674,216
2017		130,965		255,393		230,615		90,063		111,760		29,884		7,853		28,448		34,581		61,857		981,419
2018		1,147,276		99,067		352,249		82,124		61,336		—		15,117		14,389		—		124,539		1,896,097
2019		155,305		162,958		93,187		—		275,328		25,245		8,932		92,019		—		128,819		941,793
2020		210,705		284,850		66,739		34,371		175,785		136,434		19,261		118,727		1,744		38,919		1,087,535
2021		107,824		50,327		39,126		40,914		5,929		160,290		71,663		4,592		2,695		3,442		486,802
2022		64,780		197,726		20,235		27,524		4,599		—		—		7,311		1,733		50,357		374,265
2023		571,792		593,764		224,343		68,039		33,843		26,294		—		8,542		—		20,893		1,547,510
2024		75,903		—		—		262,476		11,120		64,617		23,932		—		34,980		197,048		670,076
Thereafter		358,072		929,580		685,410		1,020,996		844,678		200,944		1,032,888		413,256		368,950		1,325,111		7,179,885
Total		2,971,887		2,865,129		1,888,472		1,757,321		1,587,548		667,425		1,226,727		745,755		458,807		2,103,069		16,272,140
	Current Annualized Base Rent at Expiration (1)
Expiration	Boston		San Francisco		San Diego		New York		Maryland		Cambridge, UK		North Carolina		Pennsylvania		Seattle		University Related		Total
	(in thousands)
Month-to-month	$	—	$	—	$	—	$	13	$	474	$	—	$	—	$	24	$	—	$	533	$	1,044
2015		767		798		4,097		292		274		914		334		820		3		1,833		10,131
2016		6,333		8,385		1,491		3,668		965		54		634		828		630		921		23,908
2017		5,685		6,194		8,387		2,687		3,349		1,156		133		851		1,405		1,544		31,391
2018		63,129		2,898		10,237		2,402		3,096		—		343		562		—		3,150		85,817
2019		7,886		2,751		2,824		—		7,448		1,183		217		2,096		—		3,395		27,800
2020		13,342		8,326		2,441		1,224		3,205		4,100		298		3,299		80		963		37,277
2021		8,348		984		1,441		757		240		6,255		1,829		124		84		98		20,161
2022		4,448		6,212		1,007		—		162		—		—		270		72		1,242		13,414
2023		44,355		9,833		11,215		2,397		722		972		—		279		—		688		70,461
2024		4,739		—		—		8,557		503		2,167		314		—		942		9,266		26,489
Thereafter		26,111		44,395		36,206		51,181		37,976		8,166		24,574		15,251		19,949		38,491		302,298
Total	$	185,143	$	90,775	$	79,346	$	73,177	$	58,414	$	24,968	$	28,676	$	24,403	$	23,166	$	62,124	$	650,191

(1) 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.

FUTURE LEASE COMMENCEMENTS

JUNE 30, 2015

(Dollars in thousands)

	Annualized Base Rent (1)
	Operating				Development				Total
Expected Commencement Quarter (1)	GAAP (2)		Cash (3)		GAAP (2)		Cash (3)		GAAP (2)		Cash (3)
3Q15	$	15,456	$	18,829	$	11,030	$	10,383	$	26,486	$	29,212
4Q15		9,364		3,317		15,464		13,369		24,828		16,686
2016		6,887		16,680		9,803		9,070		16,690		25,750
2017		1,867		1,768		15,029		7,317		16,896		9,085
2018		—		—		8,134		8,358		8,134		8,358
2019		24,509		19,767		—		5,258		24,509		25,025
	$	58,083	$	60,361	$	59,460	$	53,755	$	117,543	$	114,116
	Leased Square Feet
	Operating				Development				Total
Expected Commencement Quarter (1)	GAAP (4)		Cash (4)		GAAP (4)		Cash (4)		GAAP (4)		Cash (4)
3Q15		370,970		485,457		410,411		410,411		781,381		895,868
4Q15		236,627		163,850		297,000		297,000		533,627		460,850
2016		200,496		455,463		424,929		424,929		625,425		880,392
2017		99,342		99,342		385,000		230,000		484,342		329,342
2018		—		—		230,000		225,000		230,000		225,000
2019		295,030		295,030		—		160,000		295,030		455,030
		1,202,465		1,499,142		1,747,340		1,747,340		2,949,805		3,246,482

(1) Current estimates of future lease commencement timing. Actual results may vary from current estimates. Excludes unconsolidated joint ventures.

(2) The annualized GAAP monthly rent (GABR).

(3) The annualized first monthly cash rent payment due (CABR).

(4) The leased square feet for GAAP and Cash correspond with the applicable annualized base rent commencements above.

20 LARGEST TENANTS

JUNE 30, 2015

BioMed’s properties were leased to 379 tenants.

	Tenant	Leased Square Feet		Percent of Leased Sq Ft			Annualized Base Rent Current (1) (In thousands)		Annualized Base Rent per Leased Sq Ft Current		Percent of Annualized Base Rent Current Total Portfolio			Lease Expiration
1	Regeneron Pharmaceuticals, Inc. (2)		1,118,355		6.9	%		43,736	$	39.11		7.8	%		Multiple
2	Illumina, Inc. (3)		736,193		4.5	%		27,465		37.31		4.9	%		Multiple
3	Beth Israel Deaconess Medical Center, Inc.		362,364		2.2	%		26,823		74.02		4.8	%		June 2023
4	GlaxoSmithKline plc (4)		635,058		3.9	%		23,603		37.17		4.2	%		May 2026
5	Sanofi (5)		418,003		2.6	%		23,100		55.26		4.1	%		Multiple
6	Vertex Pharmaceuticals Incorporated (6)		371,920		2.3	%		21,337		57.37		3.8	%		Multiple
7	Children’s Hospital Corporation (7)		207,909		1.3	%		15,506		74.58		2.8	%		April 2023
8	Ironwood Pharmaceuticals, Inc.		311,702		1.9	%		15,411		49.44		2.8	%		January 2018
9	Wake Forest University (8)		655,420		4.0	%		12,049		18.38		2.2	%		Multiple
10	Baxter Healthcare Corporation		206,084		1.3	%		12,024		58.35		2.2	%		January 2027
11	Alexion Pharmaceuticals, Inc. (9)		413,545		2.5	%		10,428		25.22		1.9	%		Multiple
12	Arena Pharmaceuticals, Inc.		264,557		1.6	%		8,137		30.76		1.5	%		May 2027
13	Yale University (10)		397,402		2.4	%		8,027		20.20		1.4	%		Multiple
14	MedImmune, Inc. (11)		221,371		1.4	%		7,848		35.45		1.4	%		Multiple
15	Isis Pharmaceuticals, Inc. (12)		204,704		1.3	%		7,268		35.50		1.3	%		Multiple
16	Life Technologies Corporation		204,887		1.3	%		7,251		35.39		1.3	%		March 2028
17	Bristol-Myers Squibb Company (13)		237,435		1.5	%		7,042		29.66		1.3	%		Multiple
18	Momenta Pharmaceuticals, Inc.		104,678		0.6	%		6,176		59.00		1.1	%		August 2016
19	Penn Presbyterian Medical Center		269,238		1.7	%		5,779		21.46		1.0	%		August 2034
20	Human Longevity, Inc. (14)		147,433		0.9	%		5,345		36.25		1.0	%		Multiple
	Total / weighted-average (15)		7,488,258		46.1	%	$	294,355	$	39.31		52.8	%

(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) Includes build-to-suit transaction to construct two new buildings pre-leased to Regeneron for a 15 year term totaling approximately 297,000 square feet at Landmark at Eastview. 8,981 square feet will expire in November 2015, 7,568 square feet in December 2016, 82,124 square feet in December 2018, 262,476 square feet in June 2024 and 757,206 square feet in June 2029.

(3) Includes build-to-suit transactions to construct three new buildings pre-leased to Illumina for a 15 year term totaling approximately 360,000 square feet at Lincoln Centre and another new building on a 20 year term totaling approximately 155,000 square feet at Granta Park II. 28,057 square feet will expire in June 2017, 193,136 square feet in October 2023, 200,000 square feet in June 2032, 160,000 square feet in June 2033, and 155,000 square feet in September 2037.

(4) The Company’s tenant is Human Genome Sciences (HGS), a wholly owned subsidiary of GlaxoSmithKline plc (GSK).

(5) 343,000 square feet expire July 2018 and 75,003 square feet expire September 2018.

(6) 81,204 square feet are leased with a subsidiary of Vertex Pharmaceuticals Incorporated. 290,716 square feet expire April 2018, and 81,204 square feet expire December 2018.

(7) This tenant guarantees rent on 49,866 square feet leased at the Center for Life Science | Boston.

(8) 242,000 square feet expire December 2027, 130,170 square feet in 2029, 167,947 square feet in June 2031, and 115,303 square feet expire in December 2031. Wake Forest University is the sole member of the tenant, Wake Forest University Health Sciences.

(9) 3,134 square feet are currently month-to-month and 410,411 square feet expire November 2027.

(10) 9,330 square feet are currently month-to-month, 8,478 square feet expire May 2016, 10,578 square feet expire February 2018, 15,436 square feet expire August 2020, 20,143 square feet expire February 2022, 19,912 square feet expire May 2025, 4,796 square feet expire October 2025, 208,777 square feet expire April 2032 and 95,272 square feet expire February 2036.

(11) 21,576 square feet expire December 2015, 39,505 square feet expire December 2020 and 160,290 square feet expire in December 2021.

(12) 176,000 square feet expire July 2031 and 28,704 square feet expire December 2031.

(13) 13,160 square feet will expire July, 2016, 30,167 square feet expire April 2024, and 194,108 square feet expire May 2025.

(14) 22,214 square feet will expire January 2017 and 125,219 square feet will expire in September 2025.

(15) Without regard to any renewal options but includes managements assessment on early termination options.

LEASING ACTIVITY (1)

JUNE 30, 2015

	Leased Square Feet			Current Annualized Base Rent per Leased Sq Ft			GAAP Annualized Base Rent per Leased Sq Ft			Forward-Leased Square Feet			Current Annualized Base Rent per Forward- Leased Sq Ft			GAAP Annualized Base Rent per Forward- Leased Sq Ft
Leased Square Feet as of March 31, 2015		15,683,467									164,448
Expirations and terminations		(461,201	)	$	35.40		$	34.12
Forward-lease delivery (2)		53,095			56.39			62.77			(53,095	)	$	56.39		$	62.77
Renewals and extensions		264,780			29.78			33.00
New leases (3)		731,999			29.27			30.94			305,787			65.84			81.42
Leased Square Feet as of June 30, 2015		16,272,140									417,140
	Three Months Ended															Year to Date
Leased Square Feet	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			6/30/15
Renewals and extensions		264,780			84,392			219,817			277,313			319,067			349,172
New leases		1,037,786			696,408			656,157			380,433			493,152			1,734,194
Gross Leasing Activity		1,302,566			780,800			875,974			657,746			812,219			2,083,366
Expirations		(353,486	)		(137,441	)		(423,634	)		(385,365	)		(811,921	)		(490,927	)
Terminations		(107,715	)		(759,588	)		(9,189	)		(106,629	)		(167,249	)		(867,303	)
Forward-lease delivery (2)		53,095			18,396			—			103,192			117,378			71,491
Renewals and extensions		264,780			84,392			219,817			277,313			319,067			349,172
New leases - 1st & 2nd generation (2)		361,696			692,713			92,158			331,153			307,834			1,054,409
New leases - pre-leased (3)		370,303			—			563,999			—			55,084			370,303
Net Absorption (4)		588,673			(101,528	)		443,151			219,664			(179,807	)		487,145
Operating portfolio		218,370			(101,528	)		(120,848	)		214,172			(204,673	)		116,842
Active redevelopment		—			—			—			—			—			—
Active new construction		370,303			—			563,999			5,492			24,866			370,303
Net Absorption (4)		588,673			(101,528	)		443,151			219,664			(179,807	)		487,145
Operating portfolio		932,263			780,800			311,975			652,254			787,353			1,713,063
Active redevelopment		—			—			—			—			—			—
Active new construction		370,303			—			563,999			5,492			24,866			370,303
Gross Leasing Activity		1,302,566			780,800			875,974			657,746			812,219			2,083,366

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

(2) For definition of forward-leased, see page 38.

(3) Includes first and second generation leases, forward-leases, and pre-leased. For definitions see page 38.

(4) Net absorption is calculated as total square footage of new leases, renewals and extensions, and forward-lease deliveries, less expirations and terminated square feet for the given period.

LEASING DATA

JUNE 30, 2015

	Three Months Ended															Six Months Ended
	6/30/15			3/31/15			12/31/14			9/30/14			6/30/14			6/30/15
Renewals and Extensions (1)
Number of renewals		18			16			14			14			16			34
Square feet		264,780			84,392			219,817			277,313			319,067			349,172	��
Percentage change - CABR (2) (4)		-15.3	%		6.4	%		-5.5	%		0.4	%		-13.2	%		-10.8	%
Percentage change - GABR (2) (4)		-0.1	%		11.4	%		-1.5	%		3.3	%		-8.1	%		-2.5	%
Free rent months		0.2			3.4			1.1			—			0.2			0.9	��
Weighted-average lease term years		9.0			4.8			6.4			7.2			8.8			8.0
Tenant improvement costs per square foot	$	11.37		$	—		$	8.78		$	1.50		$	1.05		$	8.63
Landlord costs per square foot		0.33			0.93			0.87			0.18			1.27			0.47
Leasing commission costs per square foot		9.47			1.55			4.61			1.46			2.17			7.55
Total tenant improvement, landlord and leasing commission costs psf	$	21.17		$	2.48		$	14.26		$	3.15		$	4.49		$	16.65
New Leases - 1st Generation (3)
Number of leases		9			9			5			12			16			18
Square feet		87,381			160,674			40,107			152,380			193,532			248,055
Free rent months		0.5			3.3			7.8			0.2			4.6			2.3
Weighted-average lease term years		7.5			12.6			9.4			9.5			8.5			10.8
Tenant improvement costs per square foot	$	59.16		$	45.04		$	87.64		$	62.99		$	56.63		$	50.02
Landlord costs per square foot		—			0.09			0.13			11.44			12.07			0.06
Leasing commission costs per square foot		9.05			9.16			6.57			12.60			5.27			9.12
Total tenant improvement, landlord and leasing commission costs psf	$	68.20		$	54.28		$	94.35		$	87.04		$	73.97		$	59.19
New Leases - 2nd Generation (3)
Number of leases		16			24			11			21			28			40
Square feet		580,102			535,734			52,051			228,053			244,536			1,115,836
Percentage change - CABR (2) (5)		3.4	%		-5.9	%		66.0	%		15.3	%		-29.1	%		-0.9	%
Percentage change - GABR (2) (5)		27.9	%		14.7	%		50.4	%		16.0	%		-17.9	%		22.3	%
Free rent months		2.4			1.5			0.4			5.8			0.8			1.9
Weighted-average lease term years		12.1			8.6			3.9			9.4			6.8			10.4
Tenant improvement costs per square foot	$	118.04		$	39.77		$	23.59		$	87.14		$	37.34		$	80.46
Landlord costs per square foot		6.47			4.67			34.82			1.40			2.40			5.61
Leasing commission costs per square foot		17.18			10.77			5.16			12.19			9.59			14.10
Total tenant improvement, landlord and leasing commission costs psf	$	141.68		$	55.21		$	63.56		$	100.74		$	49.32		$	100.17
New Leases - Pre-Leased
Number of leases		3			—			4			—			3			3
Square feet		370,303			—			563,999			—			55,084			370,303
Free rent months		2.5			—			3.5			—			2.7			2.5
Weighted-average lease term years		17.1			—			14.6			—			12.1			17.1
Tenant improvement costs per square foot	$	113.67		$	—		$	84.49		$	—		$	67.75		$	113.67
Landlord costs per square foot		162.16			—			205.82			—			98.42			162.16
Leasing commission costs per square foot		7.81			—			10.62			—			18.29			7.81
Total tenant improvement, landlord and leasing commission costs psf	$	283.64		$	—		$	300.94		$	—		$	184.46		$	283.64
Total
Number of leases and renewals		46			49			34			47			63			95
Square feet		1,302,566			780,800			875,974			657,746			812,219			2,083,366
Percentage change - CABR (2) (6)		-1.6	%		-4.6	%		1.4	%		8.7	%		-20.6	%		-2.8	%
Percentage change - GABR (2) (6)		20.6	%		14.6	%		3.7	%		10.5	%		10.7	%		17.1	%
Free rent months		1.8			2.0			2.9			2.1			1.6			1.9
Weighted-average lease term years		12.6			9.0			11.7			8.5			8.3			11.2
Tenant improvement costs per square foot	$	91.16		$	36.56		$	62.02		$	45.44		$	29.74		$	70.70
Landlord costs per square foot		49.05			3.32			134.81			3.21			10.77			31.91
Leasing commission costs per square foot		12.40			9.44			8.60			7.76			6.24			11.29
Total tenant improvement, landlord and leasing commission costs psf	$	152.61		$	49.32		$	205.43		$	56.42		$	46.75		$	113.90

(1) Does not include retained tenants that have relocated to new space or expanded into new space.

(2) Excludes retail leases, leases less than 5,000 square feet, and leases for space unoccupied for a period greater than 24 months.

(3) Includes forward-leasing activity and retained tenants that have relocated or expanded into new space within the Company’s portfolio. For definitions of first and second generation leases, see page 38.

(4) Excluding the impact of the leasing activity in Colorado, percentage change in CABR and GABR for renewals and extensions is -7.2% and 9.9%, respectively, for the three months ended June 30, 2015.

(5) Excluding the impact of the leasing activity in Colorado, percentage change in CABR and GABR for 2nd Generation leases is 7.0% and 33.0%, respectively, for the three months ended June 30, 2015.

(6) Excluding the impact of the leasing activity in Colorado, percentage change in CABR and GABR for Renewals and 2nd Generation leases is 4.7% and 29.3%, respectively, for the three months ended June 30, 2015.

ACQUISITIONS AND DISPOSITIONS

JUNE 30, 2015

Acquisitions Detail for 2015:			Rentable				Percent
			Square				Leased at
Property	Market	Closing Date	Feet		Investment		Acquisition
					(In thousands)
First Quarter 2015
Westlake	Seattle	February 11, 2015		116,214	$	89,700		99.1	%
Second Quarter 2015
Towne Centre Technology Park (1)	San Diego	May 5, 2015		182,866	$	84,000		—
Total 2015 Acquisitions				299,080	$	173,700		38.5	%
Dispositions Detail for 2015:
					Rentable
					Square		Gross
Property		Market	Closing Date		Feet		Proceeds
							(In thousands)
Second Quarter 2015
King of Prussia		Pennsylvania		May 29, 2015		547,000	$	35,223
Held for Sale:
					Anticipated		Rentable Square
Property			Market		Closing		Feet
Second Quarter 2015
65 West Watkins Mill Road				Maryland		Q3 2015		42,900

(1) Investment includes approximately 104,500 SF of estimated development potential.

NON-GAAP FINANCIAL MEASURE DEFINITIONS

JUNE 30, 2015

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.

FFO, CFFO and AFFO

We present funds from operations, or FFO, FFO excluding acquisition-related expenses, or CFFO, and adjusted funds from operations, or AFFO, available to common shares and OP units because we consider them to be 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, CFFO and AFFO when reporting their results.

FFO, CFFO and AFFO are 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, CFFO and AFFO exclude depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, they provide performance measures that, when compared year over year, reflect 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 depreciable property, impairment charges on depreciable real estate, real estate related depreciation and amortization (excluding amortization of loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures.

We calculate CFFO by adding acquisition-related expenses to FFO. We calculate AFFO by adding to CFFO: (a) non-cash revenues and expenses, (b) recurring capital expenditures and second generation tenant improvements and (c) leasing commissions.

Our computations may differ from the methodologies for calculating FFO, CFFO and AFFO utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. Further, FFO, CFFO 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, CFFO and AFFO should not be considered alternatives to net income/(loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as indicators of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. FFO, CFFO 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) non-cash adjustments for securities, (c) losses from sales of real estate, (d) executive severance, and (e) acquisition-related expenses, and by subtracting from EBITDA gains from sales of real estate. 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.

Net Operating Income (NOI) - Cash Basis

We believe that net operating income on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent, amortization of lease incentives, above and below market amortization on acquired leases, bad debt expense and rental cash adjustments to rental revenue recorded on a GAAP basis. 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

JUNE 30, 2015

Property Status

Active 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.

Active New Construction

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

Land Bank

Represents estimates of the additional rentable square footage that we could put into service if management made the strategic election to pursue additional development. Also includes properties that may be held for future development or are currently engaged in activities related to planning, entitlement or other preparations for future construction.

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.

Pre-Leased

Leases on space classified as active new construction or, prior to execution, was included in the land bank and is expected to enter the Company’s operating portfolio at a future date.

Forward-Leased

Leases on space which is currently occupied and which are expected to commence upon vacancy of the existing tenants.

Recurring Capital Expenditures

Recurring capital expenditures exclude (1) items associated with the expansion of a building or its improvements, (2) renovations to a building which change the underlying classification of the building, incurred to prepare or condition the premises for its intended purpose (for example, from office to laboratory) or (3) capital improvements that represent an addition to the property rather than the replacement of property, plant or equipment.

Bond Covenants

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, unsecured senior notes due 2019, and unsecured senior notes due 2022, which are included as exhibits to the Company’s Forms 8-K filed with the SEC on April 30, 2010, March 30, 2011, April 23, 2014, and June 28, 2012, respectively. The covenants for the unsecured senior notes due 2020, unsecured senior notes due 2016, unsecured senior notes due 2019, and unsecured senior notes due 2022 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, unsecured senior notes due 2019, and unsecured senior notes due 2022 excludes such investments in unconsolidated partnerships.