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BioMed Realty to Offer Shares

Zacks Equity Research

BioMed Realty, L.P, the operating partnership subsidiary of BioMed Realty Trust, Inc. (BMR) recently priced a public offering worth $250 million principal amount of 4.25% senior notes due 2022. The notes were priced at 99.126% of the principal amount to yield 4.358% on maturity and fully guaranteed by BioMed Realty.

The net proceeds generated from the operating partnership will be used to repay a portion of the outstanding debts under its unsecured line of credit and for other general corporate purposes.

During the first quarter 2012, the company obtained a new $400.0 million senior unsecured term loan facility scheduled to mature on March 30, 2017. The interest rate paid on drawings under the new facility was set to LIBOR plus 1.65%.

During the first quarter 2012, FFO (funds from operations) stood at $50.2 million or 30 cents per share, compared with $42.1 million or 29 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

BioMed Realty focuses on providing real estate solutions to the life science industry in the United States. Its tenants primarily include biotechnology and pharmaceutical companies, scientific research institutions, government agencies, and other entities involved in the life science industry.BioMed Realty has interests in properties comprising approximately 13.0 million rentable square feet.

BioMed Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Liberty Property Trust. (LRY)  also holds a Zacks #3 Rank.

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