EXHIBIT 99.1
BIOMED REALTY TRUST REPORTS THIRD QUARTER 2004 FINANCIAL RESULTS
SAN DIEGO, Nov. 11, 2004 (PRIMEZONE) -- BioMed Realty Trust, Inc. (NYSE:BMR)
today announced results for its third quarter ended September 30, 2004,
representing its first reporting period as a public company since the completion
of its initial public offering in August.
Net income for the quarter ended September 30, 2004 was $1.8 million, or $0.06
per basic and diluted share. Funds from operations (FFO) for the quarter ended
September 30, 2004 were $3.9 million, or $0.13 per diluted share. Adjusted funds
from operations (AFFO) for the quarter ended September 30, 2004 were $4.4
million, or $0.14 per diluted share. Management does not believe that historical
financial results are indicative of the company's expected future operating
performance, since past results are not representative of full-quarter amounts,
and year-to-year financial comparisons with the predecessor company are not
meaningful given the predecessor's limited operations. The weighted average
number of basic and diluted shares outstanding was 30,673,883 and 30,754,840,
respectively, for the quarter ended September 30, 2004.
FFO and AFFO are supplemental non-GAAP financial measures used as standards in
the real estate industry to measure and compare the operating performance of
real estate companies. A complete reconciliation containing adjustments from
GAAP net income to FFO and AFFO is included at the end of this release.
"The third quarter was a milestone period for BioMed Realty, both in terms of
the company's successful initial public offering, generating net proceeds of
$429.0 million, and our ability to complete the transactions under contract at
the time of our offering," said Alan D. Gold, president and chief executive
officer of BioMed Realty Trust.
Gold noted that, during the quarter, BioMed Realty completed the acquisition of
13 properties described in the company's initial public offering prospectus for
2.9 million limited partnership units in the company's operating partnership,
cash consideration of $400.2 million using net proceeds from the offering and
the assumption of $43.0 million of debt.
The 13 properties, located in San Diego, San Francisco, Seattle, Pennsylvania
and New York, consist of 29 buildings with 2.3 million rentable square feet of
life science and laboratory real estate that were 94.7 percent leased as of
September 30, 2004. With the completion of the additional acquisitions of San
Diego Science Center and Ardentech Court subsequent to the end of the quarter,
as announced earlier this week, BioMed Realty will own 15 properties, consisting
of 31 buildings with 2.5 million rentable square feet. The company expects to
acquire the third building on the Bridgeview property in March 2005, as a result
of the seller exercising its right to extend the closing date to facilitate a
like-kind exchange. The company also owns undeveloped land that it estimates can
support up to 548,000 square feet of laboratory and office space.
"These acquisitions establish a solid foundation for BioMed Realty and position
the company to capitalize on the tremendous near- and long-term market
opportunities within the life science real estate market, while supporting our
investment return criteria," Gold said.
He noted that during the quarter the company obtained a $100.0 million revolving
unsecured credit facility which will be used to finance acquisitions and for
other corporate purposes.
The company also declared its first dividend of $0.1497 per share of common
stock for the partial period from the closing of the company's initial public
offering through the end of the third quarter, based on a $0.27 per share
distribution rate for the full quarter. As previously announced, the dividend
was paid on October 15, 2004 to stockholders of record as of September 30, 2004.
Forward Guidance
The company's guidance for the fourth quarter ending December 31, 2004 for
earnings per share (diluted), FFO per share (diluted) and AFFO per share
(diluted) is set forth and reconciled below.
Fourth Quarter 2004
-------------------
Projected net income per share (diluted) $0.11
Add:
Minority interest $0.01
Real estate depreciation and amortization $0.16
Projected FFO per share (diluted) $0.28
Add:
Master lease receipts $0.02
Non-cash stock compensation $0.02
Straight-line rents ($0.03)
Fair value lease revenue $0.01
Recurring capital expenditures ($0.01)
Projected AFFO per share (diluted) $0.29
The foregoing estimates are forward-looking and reflect management's view of
current and future market conditions, including certain assumptions with respect
to rental rates, occupancy levels, interest rates and acquisitions. There can be
no assurance that the company's actual results will not differ materially from
the estimates set forth above.
Teleconference and Web Cast
BioMed Realty Trust will conduct a conference call and audio web cast at 10:00
a.m. Pacific Time (1:00 p.m. Eastern Time) today to discuss the company's
financial results for the quarter and developments since the company's initial
public offering in August 2004. The call will be open to all interested
investors either through a live audio web cast at the Investor Relations section
of the company's web site at http://www.biomedrealty.com and
http://www.companyboardroom.com, or live by calling (877) 226-4265 with call ID
number 1955986. Participants who wish to participate in the live call are
encouraged to pre-register by email at info@maierco.com or by calling (310)
442-9852. The call will be archived for two weeks on both web sites. A telephone
playback of the conference call will also be available from 1:00 p.m. Pacific
Time on Thursday, November 11, 2004 through midnight Pacific Time on Tuesday,
November 16, 2004, by calling (800) 642-1687 (domestic) or (706) 645-9291
(international) and using access code: 1955986.
About BioMed Realty Trust
BioMed Realty Trust, Inc. is focused on acquiring, owning, leasing, managing and
selectively developing laboratory and office space for lease to life science
tenants. Tenants include biotechnology and pharmaceutical companies, scientific
research institutions, government agencies, physician groups and other entities
involved in the life science industry. The company targets properties located in
markets with established reputations as centers for scientific research,
including San Diego, San Francisco, Seattle, Maryland, Pennsylvania, New
York/New Jersey and Boston.
This press release 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 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 California region; risks associated with the
availability and terms of financing and the use of debt to fund acquisitions and
developments; failure to manage effectively the company's growth and expansion
into new markets, or to complete or integrate acquisitions successfully; risks
and uncertainties affecting property development and construction; risks
associated with downturns in the national and local economies, increases in
interest rates, and volatility in the securities markets; potential liability
for uninsured losses and environmental contamination; risks associated with the
company's potential failure to qualify as a REIT under the Internal Revenue Code
of 1986, as amended, and possible adverse changes in tax and environmental laws;
and risks associated with the company's dependence on key personnel whose
continued service is not guaranteed. For a further list and description of such
risks and uncertainties, see the reports filed by the company with the
Securities and Exchange Commission. 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.
(Financial Tables Follow)
BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
Inhale 201
BioMed Realty Industrial Road,
Trust, Inc. L.P.(Predecessor)
-------------- -----------------
September 30, December 31,
2004 2003
-------------- -----------------
Assets
Rental property:
Land $ 58,410 $ 12,000
Buildings and improvements 331,823 37,588
Land lease 14,210 --
--------- ---------
404,443 49,588
Less: accumulated depreciation
and amortization (989) (2,563)
--------- ---------
Net rental property 403,454 47,025
Investment in unconsolidated
partnership 2,508 --
Cash and cash equivalents 36,863 157
Restricted cash 854 --
Accounts receivable 1,074 --
Due from affiliates 48 16
Accrued straight-line rents 2,535 2,427
Acquired above market leases,
net of accumulated
amortization of $160 in 2004 8,357 --
Acquired in-place leases, net
of accumulated amortization
of $1,077 in 2004 50,424 --
Acquired management agreements,
net of accumulated
amortization of $184 in 2004 8,038 --
Deferred loan costs, net of
accumulated amortization of
$49 in 2004 1,388 --
Prepaid expenses 1,601 --
Other assets 2,620 431
--------- ---------
Total assets $ 519,764 $ 50,056
========= =========
Liabilities and Stockholders'
and Owners' Equity
Secured notes payable, net $ 47,598 $ 34,208
Security deposits 3,258 --
Due to affiliates 91 3,000
Dividends and distributions
payable 5,055 --
Accounts payable and accrued
expenses 7,663 389
Acquired lease obligations, net
of accumulated amortization
of $48 in 2004 6,918 --
--------- ---------
Total liabilities 70,583 37,597
Minority interests 22,708 --
Stockholders' and owners'
equity:
Preferred stock, $.01 par
value, 15,000,000 shares
authorized, none issued or
outstanding -- --
Common stock, $.01 par value,
100,000,000 shares
authorized, 31,383,333 shares
issued and outstanding 314 --
Additional paid-in capital 433,702 --
Deferred compensation (4,672) --
Dividends in excess of
earnings (2,871) --
Owners' equity -- 12,459
--------- ---------
Total stockholders' and
owners' equity 426,473 12,459
--------- ---------
Total liabilities and
stockholders' and owners'
equity $ 519,764 $ 50,056
========= =========
BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
BioMed Realty Inhale 201 Industrial Road, L.P.
Trust, Inc. (Predecessor)
------------- --------------------------------
Period Period
August 11, July 1,
2004 2004 Three Months
through through Ended
September 30, August 17, September 30,
2004 2004 2003
------------- -------------- --------------
Revenues:
Rental $ 6,107 $ 796 $ 1,569
Tenant recoveries 2,878 76 186
------------ ------------ ------------
Total revenues 8,985 872 1,755
------------ ------------ ------------
Expenses:
Rental operations 3,539 46 190
Depreciation and
amortization 2,251 122 238
General and
administrative 1,195 -- --
------------ ------------ ------------
Total expenses 6,985 168 428
------------ ------------ ------------
Income from
operations 2,000 704 1,327
Interest income 124 -- --
Interest expense (218) (312) (2,149)
------------ ------------ ------------
Income before
minority interests 1,906 392 620
Minority interests (79) -- --
------------ ------------ ------------
Net income $ 1,827 $ 392 $ 620
============ ============ ============
Basic earnings per
share $ 0.06
============
Diluted earnings per
share $ 0.06
============
Weighted-average
common shares
outstanding:
Basic 30,673,883
============
Diluted 30,754,840
============
BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
BioMed Realty Inhale 201 Industrial Road, L.P.
Trust, Inc. (Predecessor)
------------- --------------------------------
Period Period
August 11, January 1,
2004 2004 Nine Months
through through Ended
September 30, August 17, September 30,
2004 2004 2003
------------- ------------- ---------------
Revenues:
Rental $ 6,107 $ 3,933 $ 4,706
Tenant recoveries 2,878 375 558
------------ ------------ ------------
Total revenues 8,985 4,308 5,264
------------ ------------ ------------
Expenses:
Rental operations 3,539 354 625
Depreciation and
amortization 2,251 600 713
General and
administrative 1,195 -- 6
------------ ------------ ------------
Total expenses 6,985 953 1,344
------------ ------------ ------------
Income from
operations 2,000 3,355 3,920
Interest income 124 1 1
Interest expense (218) (1,700) (2,149)
------------ ------------ ------------
Income before
minority interests 1,906 1,655 1,772
Minority interests (79) -- --
------------ ------------ ------------
Net income $ 1,827 $ 1,655 $ 1,772
============ ============ ============
Basic earnings per
share $ 0.06
============
Diluted earnings per
share $ 0.06
============
Weighted-average
common shares
outstanding:
Basic 30,673,883
============
Diluted 30,754,840
============
BIOMED REALTY TRUST, INC.
FUNDS FROM OPERATIONS
(In thousands, except per share data)
(Unaudited)
Period
August 11,
2004
through
September 30,
2004
-------------
Net income $ 1,827
Adjustments:
Minority interests (137)
Depreciation and
amortization --
real estate assets 2,251
------------
Funds from operations (FFO) 3,941
Master lease receipts 455
Amortization of deferred
loan costs 49
Accretion (amortization) of
fair value of debt (88)
Non-cash stock compensation 328
Straight-line rents (375)
Fair value lease revenue 112
Adjusted funds from
operations (AFFO) $ 4,422
============
FFO per share -- diluted $ 0.13
============
AFFO per share -- diluted $ 0.14
============
Weighted-average common
shares outstanding --
diluted 30,754,840
============
We present funds from operations, or FFO, because we consider it an
important supplemental measure of our operating performance and believe it
is frequently used by securities analysts, investors and other interested
parties in the evaluation of REITs, many of which present FFO when
reporting their results. FFO is intended to exclude GAAP historical cost
depreciation and amortization of real estate and related assets, which
assumes that the value of real estate assets diminishes ratably over time.
Historically, however, real estate values have risen or fallen with market
conditions. Because FFO excludes depreciation and amortization unique to
real estate, gains and losses from property dispositions and extraordinary
items, it provides a
performance measure that, when compared year over year, reflects the
impact to operations from trends in occupancy rates, rental rates,
operating costs, development activities and interest costs, providing
perspective not immediately apparent from net income. We compute FFO in
accordance with standards established by the Board of Governors of the
National Association of Real Estate Investment Trusts, or NAREIT, in its
March 1995 White Paper (as amended in November 1999 and April 2002). As
defined by NAREIT, FFO represents net income (computed in accordance with
GAAP), excluding gains (or losses) from sales of property, plus real
estate related depreciation and amortization (excluding amortization of
loan origination costs) and after adjustments for unconsolidated
partnerships and joint ventures. Our computation may differ from the
methodology for calculating FFO utilized by other equity REITs and,
accordingly, may not be comparable to such other REITs. Further, FFO does
not represent amounts available for management's discretionary use because
of needed capital replacement or expansion, debt service obligations, or
other commitments and uncertainties. FFO should not be considered as an
alternative to net income (loss) (computed in accordance with GAAP) as an
indicator of our financial performance or to cash flow from operating
activities (computed in accordance with GAAP) as an indicator of our
liquidity, nor is it indicative of funds available to fund our cash needs,
including our ability to pay dividends or make distributions.
We calculate adjusted funds from operations, or AFFO, by adding to FFO (a)
amounts received pursuant to master lease agreements on certain
properties, which are not included in rental income for GAAP purposes, and
(b) non-cash operating revenues and expenses. Management uses AFFO as a
supplemental operating measure because, when compared year over year, it
assesses our ability to fund dividend and distribution requirements from
our operating activities. We also believe that, as a widely recognized
measure of the operations of REITs, AFFO will be used by investors as a
basis to assess our ability to fund dividend payments in comparison to
other REITs. Other equity REITs may not calculate AFFO in a consistent
manner. Accordingly, our AFFO may not be comparable to other equity REITs'
AFFO. AFFO should be considered only as a supplement to net income
computed in accordance with GAAP as a measure of our operations.
CONTACT: Maier & Company, Inc.
Gary S. Maier / Sophie Xu
(310) 442-9852