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BioMed Realty Trust Reports Second Quarter 2014 Financial Results

Second Quarter Leasing Volume Exceeds 810,000 SF; FFO of $0.40 per Diluted Share

SAN DIEGO, Aug. 5, 2014 /PRNewswire/ -- BioMed Realty Trust, Inc. (NYSE: BMR), the leading real estate company focusing on life sciences, today announced financial results for the second quarter ended June 30, 2014.

Second Quarter 2014 Highlights

Financial and Operating Performance

  • Executed 63 leasing transactions during the quarter representing approximately 812,200 square feet,  contributing to an increase in the operating portfolio leased percentage on a weighted-average basis to 92.0% at quarter end;
  • Increased same property net operating income on a cash basis by 6.7% year-over-year;
  • Set new company records for total and rental revenues of approximately $171.2 million and $120.9 million, respectively; and
  • Generated funds from operations (FFO) and core funds from operations (CFFO) of $0.40 per diluted share and adjusted funds from operations (AFFO) of $0.32 per diluted share, and reported net income available to common stockholders for the quarter of approximately $18.6 million, or $0.10 per diluted share.

Acquisitions and Development

  • Added approximately one million square feet to the company's portfolio through its fully-leased investment in the 300 George Street and 100 College Street properties adjacent to the Yale School of Medicine in New Haven, Connecticut;
  • Initiated a new, fully-leased build-to-suit investment to comprise approximately 42,400 square feet of laboratory and office space in the Cambridge Science Park in Cambridge, United Kingdom.  The property is 100% pre-leased to Takeda Pharmaceutical Company Limited for 16 years;
  • Commenced construction of a 121,600 square foot laboratory and office building at 500 Fairview Avenue in Seattle, Washington;
  • Entered into a 99-year ground lease on a 10-acre site in Philadelphia for future development through a collaboration between Drexel University and Wexford Science & Technology, a subsidiary of BioMed Realty; and
  • Received an early payoff of the company's investment in the construction loan for the Fan Pier development project in Boston, Massachusetts, totaling $199.3 million, reflecting the repayment of $191.2 million in principal and accrued interest receivable, and prepayment fees of approximately $8.1 million.

Financing Activity

  • Repaid in full the $333.4 million principal amount outstanding on its mortgage loan secured by the Center for Life Science | Boston, which bore interest at 7.75% per annum;
  • Received an upgrade on the company's investment grade corporate credit rating from Standard & Poor's Ratings Services to BBB, after receiving a positive outlook from Moody's Investors Service in March 2014; and
  • Completed a public offering of $400 million aggregate principal amount of 2.625% Senior Notes due 2019,  priced at 99.408% of the principal amount to yield 2.752% to maturity.

Board Addition

  • Appointed Janice L. Sears, former executive at Bank of America, to the company's Board of Directors.

"Our outstanding operating and financial results in the second quarter and first half of 2014 provide further evidence of the strength of our proven strategy and business model built on a foundation of operating expertise and our lasting, long-term relationships across the broad spectrum of life science organizations," said Alan D. Gold, Chairman and Chief Executive Officer of BioMed Realty.  "As we celebrate the ten-year anniversary of our IPO, we continue to see opportunities for BioMed Realty to grow throughout all our markets, led by our dedicated, best-in-class team that possesses a deep understanding of the life science industry and a sustained track record of successfully executing our strategy of supporting the collaboration of academia and private enterprise to develop exciting new technologies and therapies that improve our lives."

Portfolio Update

During the quarter ended June 30, 2014, the company executed 63 leasing transactions representing approximately 812,200 square feet, contributing to an operating portfolio leased percentage on a weighted-average basis of 92.0% and a development portfolio pre-leased percentage of 81.6% at quarter end, and comprised of:

  • 47 new leases totaling approximately 493,200 square feet, highlighted by:
    • Leases with Affymetrix, Inc. for a total of approximately 82,800 square feet at two adjacent properties in the Torrey Pines submarket of San Diego, California, including approximately 53,800 square feet at 10255 Science Center Drive and approximately 29,000 square feet at 10240 Science Center Drive;
    • A lease with Sys-Tech Solutions, Inc. for approximately 50,600 square feet at the company's One Research Way property in Princeton, New Jersey;
    • A lease with OptiScan Biomedical Corporation totaling approximately 50,400 square feet at the Bridgeview Technology Park II property in Hayward, California;
    • A lease with Intertek USA, Inc. for approximately 46,100 square feet at the company's Wateridge Circle property in San Diego, California;
    • A lease expansion with Acorda Therapeutics, Inc. for approximately 25,400 square feet at the Ardsley Park campus in Ardsley, New York; and
    • A lease expansion with a global healthcare company for 24,900 square feet at the company's new development at 500 Fairview Avenue in Seattle, Washington.
  • 16 lease renewals and extensions totaling approximately 319,000 square feet, highlighted by a lease extension with a private biotechnology company for approximately 235,800 square feet, which also included approximately 26,400 square feet of new additional space, at the Pacific Research Center in Newark, California.

At June 30, 2014, the company's total portfolio comprised approximately 17.2 million rentable square feet, with land supporting an estimated additional 7.5 million square feet of development potential.  Second quarter same property net operating income on a cash basis increased 6.7% year-over-year, primarily as a result of sustained leasing success and contractual rent escalations.  During the second quarter, the lease at the company's King of Prussia property in Radnor, Pennsylvania reached term, and, as planned, the site is now held for development potential.  Had the property remained in the same property pool, same property net operating income on a cash basis would have increased 3.2% year-over-year.

During the second quarter, the company invested in two properties, 300 George Street and 100 College Street, adjacent to the Yale School of Medicine in New Haven, Connecticut. The 300 George Street property is a 519,000 square foot laboratory and office building, which is 98.7% leased and anchored by long-term leases to Yale University and the Yale-New Haven Hospital, with a weighted-average remaining lease term of over eleven years. The 100 College Street property, currently under construction, is a 510,000 square foot laboratory and office building that is pre-leased and anchored by Alexion Pharmaceuticals, Inc. with a weighted-average remaining lease term of over 13 years. The total project investment, upon completion, is expected to be approximately $308 million.

Also during the quarter, the company made an initial $3.9 million investment in a development in the Cambridge Science Park in Cambridge, United Kingdom as a build-to-suit property for Takeda Pharmaceutical Company Limited. Upon completion, the property is expected to comprise approximately 42,400 square feet of laboratory and office space which will be 100% leased to Takeda for 16 years, with a projected total investment of approximately $24.4 million.

In addition, during the second quarter, as a result of a collaboration between Drexel University and Wexford Science & Technology, a subsidiary of BioMed Realty, Drexel University purchased a 14-acre site from the School District of Philadelphia which formerly housed the University City High School, the Charles Drew Elementary School and The Walnut Center. Concurrent with the close of the purchase, Drexel University took title to the underlying land and Wexford entered into a 99-year ground lease for approximately ten acres of the site which provides an estimated 2.3 million square feet of development potential, with a mixed-use plan that includes laboratory and research office, residential, retail and recreational space.  The company's initial investment totaled approximately $18.2 million.

During the quarter, the company commenced construction on a 121,600 square foot laboratory and office building at 500 Fairview Avenue in Seattle, Washington.  A global healthcare company will initially be leasing approximately 24,900 square feet.  The two buildings together, comprising approximately 223,000 square feet of state-of-the-art life science real estate, are being renamed the BioMed Realty Research Center and will serve as an iconic hub for innovation in Seattle's life science community, offering amenities including onsite parking, a fitness center and a conference center.

In connection with an expansion by Acorda Therapeutics completed during the second quarter, the company is expanding its Ardsley Park campus by a total of 47,400 square feet to accommodate the new 25,400 square foot lease.  Upon completion of the expansion, the campus will comprise approximately 207,900 square feet that is 89.4% leased.

Kent Griffin, President of BioMed Realty, remarked, "Our exceptionally strong operating results of the second quarter benefited from broad-based leasing success and three strategically important portfolio additions that expand our footprint and create new connection points at cornerstones of scientific innovation – Yale University, University of Pennsylvania, Drexel University, and the University of Cambridge. We enter our second decade as a public company with very strong momentum on all fronts, thanks to the vitality of the life science industry, our team's steady execution of our business model, and the sustained support of our tenant relationships and business partners."

Subsequent to the end of the quarter, the company and Bristol-Myers Squibb entered into a ten year lease for approximately 61,000 square feet of additional laboratory space at the company's Woodside Technology Park life science campus in Redwood City, California, and extended its existing lease at the campus for 133,000 square feet by an additional 30 months.  In addition, the company entered into a lease termination with the tenant for 180,000 square feet at its 50 Hampshire building in Cambridge, Massachusetts.  The original lease would have reached term in December 2019.  Under the terms of the agreement, the tenant will pay a termination fee of $8.5 million and vacate the space at the end of March 2015.

Second Quarter 2014 Financial Results

Rental revenues for the second quarter were approximately $120.9 million, compared to approximately $108.1 million for the same period in 2013, an increase of 11.9% and the highest in the company's history.  Total revenues for the second quarter were approximately $171.2 million, compared to approximately $159.6 million for the same period in 2013, an increase of 7.2%, also the highest in the company's history. Total revenues for the second quarter 2014 include other revenue of approximately $8.1 million, relating to prepayment fees on the early repayment of the company's investment in the construction loan for the Fan Pier development in Boston, Massachusetts, which contributed approximately $0.03 per diluted share in excess of interest income expected from the loan during the quarter. Total revenues for the second quarter 2013 include other revenue of approximately $17.7 million associated with the termination of leases at the company's Science Center at Oyster Point in South San Francisco, California (which was immediately re-leased to Life Technologies Corporation).   

CFFO for the first quarter was $0.40 per diluted share and FFO, calculated in accordance with standards established by NAREIT, was also $0.40 per diluted share for the quarter.  AFFO for the quarter was $0.32 per diluted share. The company reported net income available to common stockholders for the quarter of approximately $18.6 million, or $0.10 per diluted share. 

Financing Activity

During the second quarter of 2014, the company:

  • Repaid in full the $333.4 million principal amount outstanding on its mortgage loan secured by the Center for Life Science | Boston, which bore interest at 7.75% per annum;
  • Received an upgrade of its investment grade corporate credit rating from Standard & Poor's Ratings Services (S&P) from BBB– to BBB, after receiving a positive outlook from Moody's Investors Service in March 2014; and
  • Completed a public offering of $400 million aggregate principal amount of 2.625% Senior Notes due 2019, which were priced at 99.408% of the principal amount to yield 2.752% to maturity.  Proceeds were used to repay amounts outstanding under the company's revolving credit facility.

Subsequent to the end of the quarter, certain holders of the company's exchangeable senior notes exercised their exchange rights, pursuant to which the company issued approximately 2.6 million shares of common stock in exchange for approximately $44.5 million principal amount of notes.

Also subsequent to quarter end, the company amended the terms of the loan held through its joint venture with Prudential Real Estate Investors (PREI) and secured by the PREI joint venture's 650 E. Kendall Street property in Cambridge, Massachusetts, extending the loan's maturity date to August 13, 2015 and reducing the applicable credit spread to 205 basis points, with an option to further extend the maturity date to August 13, 2016.

Commenting on the financial results of the second quarter, Greg Lubushkin, Chief Financial Officer of BioMed Realty, remarked, "Exceptional leasing results and our strategic investments continue to drive record rental revenues, robust same property cash NOI growth and steady core funds from operations, all of which are well supported by our strong, flexible balance sheet and industry-leading capital structure. Our proven capital strategy and execution was validated in the second quarter when our investment grade corporate credit rating was upgraded by S&P to BBB and we executed a highly efficient $400 million offering of 2.625% unsecured senior notes. These successes provide the foundation for us to continue to pursue strategic growth opportunities which create value for our stockholders."

Earnings Guidance

The company's updated 2014 guidance for net income per diluted share, FFO per diluted share and CFFO per diluted share are set forth and reconciled below. Projected net income per diluted share and FFO per diluted share (and CFFO per diluted share) are based upon estimated, weighted-average diluted common shares outstanding of approximately 197.8 million and 208.8 million, respectively. 


2014


(Low - High)

Projected net income per diluted share available to common stockholders

$0.26 – $0.30

    Add:


  Real estate depreciation and amortization

$1.26

  Noncontrolling interests in operating partnership

$0.01

    Less:


  Net effect of assumed conversion of exchangeable senior notes due 2030

($0.03)



Projected FFO per diluted share

$1.50 – $1.54



Add: Acquisition costs

$0.01



Projected CFFO per diluted share

$1.51 – $1.55

 

The company's 2014 FFO and CFFO estimates reflect the company's year-to-date operating results.   In addition, these estimates reflect early repayment of the construction loan in the Fan Pier development project (with previous estimates assuming repayment in the third quarter of 2014) and the 50 Hampshire lease termination executed subsequent to quarter end.  The company received prepayment fees on the construction loan of approximately $8.1 million in the second quarter which, as a result of the early payoff, are partially offset, on a full year basis, by a reduction in anticipated interest income from the loan. The impact of the 50 Hampshire lease termination fee, net of related GAAP adjustments, totaled $7.5 million and will be recognized ratably as additional revenue from August 2014 through March 2015, when the lease will terminate. The impact of these two items has the net effect of increasing the company's estimates for 2014 FFO and CFFO by approximately $0.03 per diluted share.

The company continues to target new investment opportunities, including acquisitions and new development projects; however, the company's 2014 FFO and CFFO estimates do not reflect the impact of any future new investments (acquisitions or new development starts) 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, interest rates, financings, acquisitions, 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.

Supplemental Information

Supplemental operating and financial data are available in the Investor Relations section of the company's website at www.biomedrealty.com.

Teleconference and Webcast

BioMed Realty will conduct a conference call and webcast at 1:30 p.m. Eastern Time (10:30 a.m. Pacific Time) on Wednesday, August 6, 2014 to discuss the company's financial results and operations for the quarter from the New York Stock Exchange as part of the company's Investor Day 2014 event.  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 www.biomedrealty.com and at www.earnings.com, which will include an online slide presentation to accompany the call, or live by calling (877) 261-8990 (domestic) or (847) 619-6441 (international) with call ID number 37659214. The complete webcast will be archived for 30 days on both web sites. A telephone playback of the conference call will also be available from 4:30 p.m. Eastern Time on Wednesday, August 6, 2014 until midnight Eastern Time on Monday, August 11, 2014 by calling (888) 843-7419 (domestic) or (630) 652-3042 (international) and using access code 37659214#.

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 17.2 million rentable square feet.  Additional information is available at www.biomedrealty.com. Follow us on Twitter @biomedrealty.

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, 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 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.

(Financial Tables Follow)

 

BIOMED REALTY TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)



June 30,
2014


December 31,
2013


(Unaudited)



ASSETS




Investments in real estate, net

$

5,474,648



$

5,217,902


Investments in unconsolidated partnerships

32,440



32,137


Cash and cash equivalents

39,004



34,706


Accounts receivable, net

9,686



8,421


Accrued straight-line rents, net

181,705



173,779


Deferred leasing costs, net

236,848



198,067


Other assets

185,406



307,589


  Total assets

$

6,159,737



$

5,972,601


LIABILITIES AND EQUITY




Mortgage notes payable, net

$

456,034



$

709,324


Exchangeable senior notes

180,000



180,000


Unsecured senior notes, net

1,293,246



895,083


Unsecured senior term loan

764,106



758,786


Unsecured line of credit

155,000



128,000


Accounts payable, accrued expenses and other liabilities

358,958



314,383


  Total liabilities

3,207,344



2,985,576


Equity:




Stockholders' equity:




Common stock, $.01 par value, 250,000,000 shares authorized, 192,525,766 shares 192,115,002 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively

1,925



1,921


Additional paid-in capital

3,557,886



3,554,558


Accumulated other comprehensive loss, net

(24,088)



(32,923)


Dividends in excess of earnings

(642,360)



(583,569)


  Total stockholders' equity

2,893,363



2,939,987


Noncontrolling interests

59,030



47,038


  Total equity

2,952,393



2,987,025


  Total liabilities and equity

$

6,159,737



$

5,972,601


 

 


BIOMED REALTY TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share data)

(Unaudited)



For the Three Months Ended


For the Six Months Ended


June 30,


June 30,


2014


2013


2014


2013

Revenues:








 Rental

$

120,924


$

108,092


$

240,950


$

211,048

Tenant recoveries

40,280


32,494


79,015


65,131

Other revenue

9,957


19,053


20,072


43,911

Total revenues

171,161


159,639


340,037


320,090

Expenses:







Rental operations

53,636


41,941


106,159


82,494

Depreciation and amortization

62,736


63,557


125,145


124,320

General and administrative

12,443


10,396


24,385


20,424

Acquisition-related expenses

1,134


2,120


2,384


4,357

Total expenses

129,949


118,014


258,073


231,595

Income from operations

41,212


41,625


81,964


88,495

Equity in net loss of unconsolidated partnerships

(10)


(267)


(148)


(585)

Interest expense, net

(23,131)


(26,119)


(51,141)


(52,021)

Other expense

1,027


(202)


9,190


(3,392)

    Net income

19,098


15,037


39,865


32,497

Net income attributable to noncontrolling interests

(462)


(234)


(2,396)


(379)

Net income attributable to the company

18,636


14,803


37,469


32,118

Preferred stock dividends




(2,393)

Cost on redemption of preferred stock




(6,531)

Net income available to common stockholders

$

18,636


$

14,803


$

37,469


$

23,194

Income from continuing operations per share available to common stockholders:









Basic and diluted earnings per share

$

0.10


$

0.08


$

0.19


$

0.13

Weighted-average common shares outstanding:










Basic

191,003,248


186,735,157


190,954,827


173,288,517

Diluted

196,800,354


190,151,166


196,673,649


176,508,215












 

BIOMED REALTY TRUST, INC.

CONSOLIDATED FUNDS FROM OPERATIONS

(In thousands, except share data)

(Unaudited)


        Our FFO and CFFO available to common shares and partnership and LTIP units and a reconciliation to net income for the three and six months ended June 30, 2014 and 2013 was as follows:



Three Months Ended


Six Months Ended


June 30,


June 30,


2014


2013


2014



2013

Net income available to the common stockholders

$

18,636


$

14,803


$

37,469


$

23,194

Adjustments:









Noncontrolling interests in operating partnership

514


263


1,035


416

Depreciation and amortization – unconsolidated partnerships

403


367


776


736

Depreciation and amortization – consolidated entities

62,736


63,557


125,145


124,320

Depreciation and amortization – allocable to noncontrolling interest of consolidated joint ventures

(599)


(164)


(1,040)


(194)

FFO available to common shares and units – basic

$

81,690


$

78,826


$

163,385


$

148,472

     Interest expense on exchangeable senior notes


1,688



1,688



3,375



3,375

FFO available to common shares and units – diluted

$

83,378


$

80,514


$

166,760


$

151,847

     Acquisition-related expenses


1,134



2,120



2,384



4,357

CFFO – diluted

$

84,512


$

82,634


$

169,144


$

156,204

FFO per share – diluted

$

0.40


$

0.40


$

0.80


$

0.81

CFFO per share – diluted

$

0.40


$

0.41


$

0.81


$

0.83

Weighted-average common shares and units outstanding – diluted (1)

208,887,941


201,716,873


208,761,935


188,119,664

 

        Our AFFO available to common shares and partnership and LTIP units and a reconciliation of CFFO to AFFO for the three and six months ended June 30, 2014 and 2013 was as follows:



Three Months Ended


Six Months Ended


June 30,


June 30,


2014


2013


2014


2013

CFFO - diluted

$

84,512




82,634



$

169,144



$

156,204


Adjustments:








Recurring capital expenditures and second generation tenant improvements

(21,553)



(12,599)



(29,284)



(22,394)


Leasing commissions

(1,929)



(1,985)



(3,839)



(3,565)


Non-cash revenue adjustments

(1,830)



(821)



(4,752)



2,422


Non-cash adjustment for securities

50





50



2,825


Non-cash debt adjustments

3,568



3,059



6,501



6,158


Non-cash equity compensation

3,729



3,067



7,479



6,078


Cost on redemption of preferred stock







6,531


Depreciation included in general and administrative expenses

757



565



1,497



1,046


Share of non-cash unconsolidated partnership adjustments

18



31



36



71


AFFO available to common shares and units

$

67,322




73,951



$

146,832



$

155,376


AFFO per share – diluted

$

0.32




0.37



$

0.70



$

0.83


Weighted-average common shares and units outstanding -

diluted (1)

208,887,941



201,716,873



208,761,935



188,119,664



















(1)

The three and six months ended June 30, 2014 include 10,578,132 shares of common stock potentially issuable pursuant to the exchange feature of the exchangeable senior notes due 2030 based on the "if converted" method. The three and six months ended June 30, 2013  include 10,259,496 shares of common stock potentially issuable pursuant to the exchange feature of the exchangeable senior notes due 2030 based on the "if converted" method.  The three months ended June 30, 2014 and 2013 include 1,509,455 and 1,306,211 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share. The six months ended June 30, 2014 and 2013 include 1,510,154 and 1,351,953 shares of unvested restricted stock, respectively, which are considered anti-dilutive for purposes of calculating diluted earnings per share.

 

We present funds from operations, or FFO, core funds from operations, or CFFO, and adjusted funds from operations, or AFFO, available to common shares and partnership and LTIP units because we consider them important supplemental measures of our operating performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of REITs, many of which present FFO, CFFO and AFFO when reporting their results.

FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO excludes depreciation and amortization unique to real estate, gains and losses from property dispositions and extraordinary items, it provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, impairment charges 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 computation of FFO, CFFO and AFFO may differ from the methodology 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 cash flow 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 as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. FFO, CFFO and AFFO should be considered only as supplements to net income computed in accordance with GAAP as measures of our operations.

SOURCE BioMed Realty Trust, Inc.

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One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...