SAN DIEGO-BioMed Realty Trust is starting the year off strong with 466,000 square feet of total leasing, increased FFO guidance and total revenues generated of $120 million, up 14.1% from $105.2 million in the same period in 2011, the life-sciences REIT’s recent earnings call revealed.
“2012 is off to a great start,” said Alan Gold, chairman and CEO of BioMed, during the call. “We’ve made strong strides and substantial achievements.”
Rental revenues for the quarter increased by 14.5% over first-quarter 2011, up from $79.9 million to $91.5 million, the highest in the company’s history for the ninth consecutive quarter. BioMed also increased its current operating portfolio to approximately 90.7% leased at quarter end, on a weighted-average basis, as the result of executing 22 leasing transactions representing approximately 466,300 square feet.
Among the transactions for the quarter were 16 new leases totaling approximately 395,400 square feet, including, as GlobeSt.com previously reported, a long-term lease for 220,000 square feet at Pacific Research Center, signed in March to a private biotech company unnamed by BioMed. According to Gold at that time, the company joined nine other companies at the campus, “which continues to attract thriving life science and technology companies with its extensive amenities and convenient location immediately off of Highway 84 and the Dumbarton Bridge.” According to the firm’s website, PRC’s “competitive leasing rates make the campus a compelling economic consideration for any tenant in the Bay Area.”
Also signed during the quarter were a new 64,483-square-foot lease with Omeros Corp. at the company’s 201 Elliott Ave. property in Seattle; three new leases with life sciences tenants totaling 30,232 square feet at Fresh Pond Research Park in Cambridge, MA; and six lease renewals totaling approximately 70,900 square feet.
In addition, the company has increased FFO for the quarter to $50.2 million, as compared to $42.1 million in first-quarter 2011. During the call, Gold said the company has been able to “consistently access capital from a wide variety of sources. The life-science industry continues to grow despite macroeconomic controls.”
He added that demographic trends show overwhelming support is needed for advancements in healthcare, and the growth in this field has been aided by the sea change in the healthcare sector. “Capital continues to flow to new opportunities, fueled by today’s M&A activities. We’re very excited by the continued success of our tenants.”
EVP Matt McDevitt spoke more about leasing next during the call, adding that the company is way ahead of its leasing goal of 250,000 square feet at PRC. Over the last five quarters, the company has signed 263,000 square feet of leases in Cambridge, MA, at its newly acquired Cambridge Place, composed of three buildings and a total of approximately 286,900 square feet; its consolidated portfolio in Cambridge is up to 95% leased. “We’re seeing strong leasing activity throughout all of our core markets, and we have strong relationships with our exceptional tenant roster.”
Kent Griffin, president, said that the company is focused on near- and long-term development opportunities. “We continue to leverage our strong operating platform, industry expertise and strong relationships to create value bit by bit, brick by brick for our shareholders.”
CFO Greg Lubushkin mentioned the company’s 14% year-over-year improvement in revenues. “We’re beginning to recognize rents from leases signed in past quarters.” He added that the company closed on a $400 million unsecured loan in March and that the company’s accessed capital carries “innovative and attractively priced financing.” BioMed had $723 million in line capacity at the end of the first quarter.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
