BioMed Realty Trust Inc. (BMR, Financial) filed Quarterly Report for the period ended 2009-03-31.
Biomed Realty Trust is focused on acquiring owning leasing managing and selectively developing laboratory and office space for lease to life science tenants including biotechnology and pharmaceutical companies scientific research institutes government agencies and other entities involved in the life science industry. The Company targets properties located in certain markets with established reputations as centers for scientific research including San Diego San Francisco Seattle Maryland Pennsylvania New York/New Jersey and Boston. BioMed Realty Trust Inc. has a market cap of $926.2 million; its shares were traded at around $11.41 with a P/E ratio of 6.1 and P/S ratio of 3.1. The dividend yield of BioMed Realty Trust Inc. stocks is 11.8%.
Rental Operations Expense. Rental operations expense increased $8.3 million to $22.2 million for the three months ended March 31, 2009 compared to $13.9 million for the three months ended March 31, 2008. The increase was primarily due to properties that were under redevelopment or development for which partial revenue recognition commenced during 2008 and 2009 (principally at our Center for Life Science | Boston property) and the write-off of certain assets related to early lease terminations of approximately $3.4 million, partially offset by properties that generated rental revenues in 2008, which subsequently entered redevelopment. Same property rental operations expense increased $2.5 million, or 19.8%, for the three months ended March 31, 2009 compared to the same period in 2008 primarily due to the write-off of certain assets related to early lease terminations, and net increases in utility usage and other recoverable costs compared to the same period in the prior year, partially offset by change in 2008 at certain properties at which the tenant began to pay vendors directly for certain recoverable expenses.
Depreciation and Amortization Expense. Depreciation and amortization expense increased $9.6 million to $27.3 million for the three months ended March 31, 2009 compared to $17.7 million for the three months ended March 31, 2008. The increase was primarily due to commencement of partial operations and recognition of depreciation and amortization expense at certain of our redevelopment and development properties in 2008 and 2009 (principally at our Center for Life Science | Boston property) and the acceleration of depreciation on certain assets related to early lease terminations of approximately $3.7 million.
During the three months ended March 31, 2009, we capitalized $4.1 million of interest compared to $15.0 million (revised for adoption of FSP 14-1, which increased capitalized interest by approximately $409,000) for the three months ended March 31, 2008. The decrease reflects the partial or complete cessation of capitalized interest at our Center for Life Science | Boston, 9865 Towne Centre Drive, and 530 Fairview Avenue development projects and our Pacific Research Center redevelopment project due to the commencement of certain leases at those properties or the cessation of development or redevelopment activities. We expect capitalized interest costs on these and other properties currently under development or redevelopment to decrease or cease as rentable space at these properties is readied for its intended uses through 2009. Net of capitalized interest and the accretion of debt premiums and a debt discount, interest expense increased $4.9 million to $12.1 million for the three months ended March 31, 2009 compared to $7.2 million for the three months ended March 31, 2008. We expect interest expense to continue to increase in 2009 as additional properties currently under development or redevelopment are readied for their intended uses and placed in service, and also due to the refinancing of certain debt from variable-rate to fixed-rate debt in 2009.
Loss on derivative instruments. During the three months ended March 31, 2009, a portion of the unrealized losses related to the $100.0 million forward starting swap previously included in accumulated other comprehensive loss, totaling approximately $4.5 million, was reclassified to the consolidated income statement as loss on derivative instruments as a result of a change in the amount of forecasted debt issuance relating to the forward starting swaps, from $400.0 million at December 31, 2008 to $368.0 million at March 31, 2009. The loss on derivative instruments for the three months ended March 31, 2009 also includes approximately $4.4 million of gains from changes in the fair-value of derivative instruments (net of hedge ineffectiveness on cash flow hedges due to mismatches in forecasted debt issuance dates, maturity dates and interest rate reset dates of the interest rate and forward starting swaps and related debt).
Gain on Extinguishment of Debt. In March 2009, we repurchased $12.0 million face value of our exchangeable senior notes for approximately $6.9 million. The repurchase resulted in the recognition of a gain on extinguishment of debt of approximately $4.4 million (net of the write-off of approximately $719,000 in deferred loan fees and unamortized debt discount), which is reflected in our consolidated statements of income.
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Biomed Realty Trust is focused on acquiring owning leasing managing and selectively developing laboratory and office space for lease to life science tenants including biotechnology and pharmaceutical companies scientific research institutes government agencies and other entities involved in the life science industry. The Company targets properties located in certain markets with established reputations as centers for scientific research including San Diego San Francisco Seattle Maryland Pennsylvania New York/New Jersey and Boston. BioMed Realty Trust Inc. has a market cap of $926.2 million; its shares were traded at around $11.41 with a P/E ratio of 6.1 and P/S ratio of 3.1. The dividend yield of BioMed Realty Trust Inc. stocks is 11.8%.
Highlight of Business Operations:
Rental Revenues. Rental revenues increased $18.1 million to $68.4 million for the three months ended March 31, 2009 compared to $50.3 million for the three months ended March 31, 2008. The increase was primarily due to properties that were under redevelopment or development for which partial revenue recognition commenced during 2008 and 2009 (principally at our Center for Life Science | Boston property). Same property rental revenues increased $5.1 million, or 10.4%, for the three months ended March 31, 2009 compared to the same period in 2008. The increase in same property rental revenues was primarily a result of the acceleration of the amortization of below-market lease intangible assets related to lease terminations of approximately $2.7 million, the commencement of new leases at certain properties in 2009, and increases in lease rates related to CPI adjustments and increases in lease rates on lease extensions (increasing rental revenue recognized on a straight-line basis), partially offset by lease expirations and early lease terminations.Rental Operations Expense. Rental operations expense increased $8.3 million to $22.2 million for the three months ended March 31, 2009 compared to $13.9 million for the three months ended March 31, 2008. The increase was primarily due to properties that were under redevelopment or development for which partial revenue recognition commenced during 2008 and 2009 (principally at our Center for Life Science | Boston property) and the write-off of certain assets related to early lease terminations of approximately $3.4 million, partially offset by properties that generated rental revenues in 2008, which subsequently entered redevelopment. Same property rental operations expense increased $2.5 million, or 19.8%, for the three months ended March 31, 2009 compared to the same period in 2008 primarily due to the write-off of certain assets related to early lease terminations, and net increases in utility usage and other recoverable costs compared to the same period in the prior year, partially offset by change in 2008 at certain properties at which the tenant began to pay vendors directly for certain recoverable expenses.
Depreciation and Amortization Expense. Depreciation and amortization expense increased $9.6 million to $27.3 million for the three months ended March 31, 2009 compared to $17.7 million for the three months ended March 31, 2008. The increase was primarily due to commencement of partial operations and recognition of depreciation and amortization expense at certain of our redevelopment and development properties in 2008 and 2009 (principally at our Center for Life Science | Boston property) and the acceleration of depreciation on certain assets related to early lease terminations of approximately $3.7 million.
During the three months ended March 31, 2009, we capitalized $4.1 million of interest compared to $15.0 million (revised for adoption of FSP 14-1, which increased capitalized interest by approximately $409,000) for the three months ended March 31, 2008. The decrease reflects the partial or complete cessation of capitalized interest at our Center for Life Science | Boston, 9865 Towne Centre Drive, and 530 Fairview Avenue development projects and our Pacific Research Center redevelopment project due to the commencement of certain leases at those properties or the cessation of development or redevelopment activities. We expect capitalized interest costs on these and other properties currently under development or redevelopment to decrease or cease as rentable space at these properties is readied for its intended uses through 2009. Net of capitalized interest and the accretion of debt premiums and a debt discount, interest expense increased $4.9 million to $12.1 million for the three months ended March 31, 2009 compared to $7.2 million for the three months ended March 31, 2008. We expect interest expense to continue to increase in 2009 as additional properties currently under development or redevelopment are readied for their intended uses and placed in service, and also due to the refinancing of certain debt from variable-rate to fixed-rate debt in 2009.
Loss on derivative instruments. During the three months ended March 31, 2009, a portion of the unrealized losses related to the $100.0 million forward starting swap previously included in accumulated other comprehensive loss, totaling approximately $4.5 million, was reclassified to the consolidated income statement as loss on derivative instruments as a result of a change in the amount of forecasted debt issuance relating to the forward starting swaps, from $400.0 million at December 31, 2008 to $368.0 million at March 31, 2009. The loss on derivative instruments for the three months ended March 31, 2009 also includes approximately $4.4 million of gains from changes in the fair-value of derivative instruments (net of hedge ineffectiveness on cash flow hedges due to mismatches in forecasted debt issuance dates, maturity dates and interest rate reset dates of the interest rate and forward starting swaps and related debt).
Gain on Extinguishment of Debt. In March 2009, we repurchased $12.0 million face value of our exchangeable senior notes for approximately $6.9 million. The repurchase resulted in the recognition of a gain on extinguishment of debt of approximately $4.4 million (net of the write-off of approximately $719,000 in deferred loan fees and unamortized debt discount), which is reflected in our consolidated statements of income.
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