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BioMed Realty Trust Inc. Reports Operating Results (10-Q)

November 04, 2010 | About:
10qk

10qk

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BioMed Realty Trust Inc. (BMR) filed Quarterly Report for the period ended 2010-09-30.

Biomed Realty Trust Inc. has a market cap of $2.4 billion; its shares were traded at around $18.7 with a P/E ratio of 10 and P/S ratio of 6.7. The dividend yield of Biomed Realty Trust Inc. stocks is 3.6%. Biomed Realty Trust Inc. had an annual average earning growth of 27.6% over the past 5 years.BMR is in the portfolios of Columbia Wanger of Columbia Wanger Asset Management, John Buckingham of Al Frank Asset Management, Inc., Manning & Napier Advisors, Inc, Jim Simons of Renaissance Technologies LLC, Pioneer Investments, Kenneth Fisher of Fisher Asset Management, LLC.

Highlight of Business Operations:

Rental Revenues. Rental revenues increased $4.5 million to $73.0 million for the three months ended September 30, 2010 compared to $68.5 million for the three months ended September 30, 2009. The increase was primarily due to properties that were under redevelopment or development for which partial revenue recognition commenced during 2010 and 2009 (principally related to buildings placed into service at our Landmark at Eastview and Pacific Research Center properties), new properties acquired in 2010 and the commencement of leases. Same property rental revenues decreased $1.0 million, or 1.5%, for the three months ended September 30, 2010 compared to the same period in 2009. The decrease in same property rental revenues was primarily due to lease expirations and early lease terminations during 2009 and 2010 for which the space vacated has not yet been fully released or for which leases to occupy the space have not yet commenced, and the extension of new leases at certain properties (decreasing rental revenue recognized on a straight-line basis), partially offset by leases that commenced revenue recognition after September 30, 2009 or during 2010.

Tenant Recoveries. Revenues from tenant reimbursements increased $3.5 million to $22.7 million for the three months ended September 30, 2010 compared to $19.2 million for the three months ended September 30, 2009. The increase was primarily due to the commencement of operating expense recoveries at certain properties during 2010 (principally at our Center for Life Science | Boston and Pacific Research Center properties), an increase in utilities and other recoverable expenses at certain properties, and recoveries at new properties acquired in 2010. Same property tenant recoveries increased $2.3 million, or 12.2%, for the three months ended September 30, 2010 compared to the same period in 2009 primarily as a result of an increase in recoverable expenses and in recovery rates due to lease commencements in 2010 and 2009.

Other Income. Other income was $39,000 for the three months ended September 30, 2010 compared to $5.3 million for the three months ended September 30, 2009. Other income for the three months ended September 30, 2010 primarily comprised development fees earned from our PREI joint ventures. Other income for the three months ended September 30, 2009 primarily comprised consideration received related to early lease terminations of approximately $4.4 million and development fees earned from our PREI joint ventures. Termination payments received for leases terminated during the three months ended September 30, 2010 and 2009 aggregated $14,000 and $4.4 million, respectively.

Rental Operations Expense. Rental operations expense increased $1.3 million to $20.0 million for the three months ended September 30, 2010 compared to $18.7 million for the three months ended September 30, 2009. The increase was primarily due to an increase in utility usage and other recoverable costs as a result of tenants taking possession of leased premises at certain properties (principally related to leases at our Center for Life Science | Boston property) and increased building maintenance and repair expense, partially offset by insurance reimbursements and a decrease in rental operations expense at certain properties as compared to the same period in the prior year (due to the write off of certain assets in 2009 as a result of early lease terminations). Same property rental operations expense increased $545,000, or 3.6%, for the three months ended September 30, 2010 compared to 2009 primarily due to net increases in utility usage and other recoverable costs compared to the same period in the prior year due to lease commencements in 2010 and 2009.

Real Estate Tax Expense. Real estate tax expense increased $1.2 million to $9.4 million for the three months ended September 30, 2010 compared to $8.2 million for the three months ended September 30, 2009. The increase was primarily due to an increase in the assessed value at a number of our properties, generally as a result of the completion of improvements (principally at our Center for Life Science | Boston property) and the commencement of operations at certain properties that were under partial or full development in 2009 (principally at our Pacific Research Center property). Same property real estate tax expense increased $494,000, or 6.6%, for the three months ended September 30, 2010 compared to 2009 generally as a result of the completion of improvements at a number of properties.

During the three months ended September 30, 2010, we capitalized $1.2 million of interest compared to $2.9 million for the three months ended September 30, 2009. The decrease reflects the cessation of capitalized interest at our Landmark at Eastview development project and our Elliott Avenue and Pacific Research Center redevelopment projects due to the commencement of certain leases at those properties or the cessation of development or redevelopment activities. Although capitalized interest costs on certain properties currently under development or redevelopment will decrease or cease as rentable space at these properties is readied for its intended use through 2010, this decrease will be offset by an increase in interest capitalized at our Gazelle Court development project, which began development activities in April 2010 as well as continued predevelopment activities at certain other properties. Net of capitalized interest and the accretion of debt premiums and debt discounts, interest expense increased $2.0 million to $21.6 million for the three months ended September 30, 2010 compared to $19.6 million for the three months ended September 30, 2009.

Read the The complete Report

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