SAN DIEGO—BioMed Realty Trust, Inc., a leading real estate company focusing on life sciences, has disclosed its financial results for the third quarter ended September 30.
"We are pleased to see that our strategy of creating value with connection points for leading life science companies and research institutions continues to drive strong results,” said chairman and CEO Alan Gold. “We saw robust leasing in the third quarter led by leases with two global biopharmaceutical leaders in our two largest markets—Baxter in Cambridge and Bristol-Myers Squibb in the Bay Area. These important transactions validate our proven business model of creating exceptional research environments in the right markets for the life science industry to create scientific breakthroughs that are changing the world."

At September 30, 2014, the company's total portfolio comprised approximately 17.2 million rentable square feet, with land supporting an estimated additional 7.4 million square feet of development potential. Third quarter same property net operating income on a cash basis increased 7.2% year-over-year, primarily as a result of sustained leasing success and contractual rent escalations.
During the quarter, the company entered into a lease termination with a tenant for 180,000 square feet at its 50 Hampshire building in Cambridge, MA. The original lease was scheduled to expire in January 2020. Under the terms of the agreement, the tenant agreed to pay a termination fee of $8.5 million which, net of related GAAP adjustments, will result in $7.5 million being recognized as other revenue ratably through March 2015, when the tenant is expected to vacate the space.
During the quarter, the company completed construction of an approximately 334,000 square foot laboratory and office building at 3737 Market Street in Philadelphia, Pennsylvania. The eleven-story building is 82.4% leased to tenants that include Penn Medicine University City; Spark Therapeutics, Inc., a gene therapy company originating out of The Children's Hospital of Philadelphia; Good Shepherd Penn Partners, which operates the Penn Institute for Rehabilitation Medicine; and The Rose Group, owner of the Corner Bakery Café.
"Our team's unmatched ability to successfully acquire, develop, redevelop, lease, finance and operate life science real estate continues to translate into superior operating and financial results in 2014," said Kent Griffin, President of BioMed Realty. "Leasing volume of almost two million square feet, acquisitions which have added over one million rentable square feet which are 99% leased, and on-time, on-budget development deliveries such as the 3737 Market Street project in Philadelphia supply the year-to-date headlines. Supporting all of this growth is our exceptionally strong capital position, liquidity and credit profile which drive down our cost of capital. In doing so, we more effectively serve our tenants, maximize the operating cash flow from our property portfolio and capitalize on future opportunities to generate value for shareholders."

Financial and Operating Performance