UNC KENAN-FLAGLER: DISCUSSION MATERIALS MARCH 2014
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. For a further list and description of such risks and uncertainties, see the reports filed by the company with the Securities and Exchange Commission, including the company s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For definitions of terms and reconciliations for certain financial measures disclosed herein, including but not limited to funds from operations (FFO), core funds from operations (CFFO), adjusted funds from operations (AFFO), current annualized base rents (CABR), cash net operating income, same property cash net operating income, adjusted EBITDA, and fixed charge coverage ratio, please see the company s earnings press release issued on February 5, 2014 and the company s Supplemental Operating and Financial Data package for the quarter ended December 31, 2013, each available in the investor relations section of the company s website located at www.biomedrealty.com. BIOMED REALTY 2
BIOMED REALTY: DISCOVER HERE $6.8 billion in gross assets Equity REIT Listed on NYSE Internally managed Investment grade credit rating by S&P and Moody s Specialty REIT focused on life science real estate 16+ million square feet in the U.S. and UK 91.4% leased operating portfolio (1) Long-term, triple-net leases 840,000 SF of active development and redevelopment (74% pre-leased) (1) For the consolidated operating portfolio as of December 31, 2013. Weighted average calculated based on gross book value for each asset multiplied by the percentage leased. BIOMED REALTY 3
BIOMED REALTY PORTFOLIO Core life science locations and centers of academic research Shady Grove Road Maryland University City Science Center Philadelphia 500 Kendall Street Cambridge Center for Life Science Boston Boston Elliott Avenue Seattle 4570 Executive Drive San Diego BIOMED REALTY 4
LONG-TERM VALUE CREATION OPPORTUNITY New investment opportunities OPPORTUNISTIC ACQUISITIONS UNIVERSITY-RELATED NEW DEVELOPMENT EXISTING RELATIONSHIPS NEW RELATIONSHIPS Land bank for future investment 4.9 MILLION SF Active development pipeline 694,300SF 69 % LEASED Incremental lease-up opportunity Same-property NOI growth Dividend 1.8 MILLION SF AVAILABLE TO LEASE 2.5 % +/- CONTRACTUAL RENT ESCALATIONS 5.0 % +/- YIELD BIOMED REALTY 5
LIFE SCIENCE CAPITAL RAISING Driving leasing activity BMR Gross Leasing (MM S.F.) Life Science Capital Raised ($B) 2.5 2.0 1.5 1.6 $66 Amex Biotech Index 1.8 42% S&P 500 Index $82 2.3 51% $90 100 90 80 70 60 30% 50 1.0 40 0.5-13% 0% 2011 2012 2013-16% 30 20 10 - Source: Yahoo Finance and The Burrill Report Note: Returns shown for both the Amex Biotech Index & S&P 500 Index represent prices changes only (dividends are excluded). BIOMED REALTY 6
LIFE SCIENCE CAPITAL RAISING Recent activity & trends Money Raised by Biotech Industry: 2014 vs. 2013 1/1/14-3/20/14 ($8.8 billion) 1/1/13-3/21/13 ($4.8 billion) $9,000 $8,000 7,812 Millions $7,000 $6,000 $5,000 $4,000 $3,000 4,417 $2,000 $1,000 $0 Public Financing (1) 966 426 Private Biotechs Source: BioWorld; Burrill and Company (1) Includes financings of public biotech firms with the exceptions of public offerings and certain investments from corporate partners. BIOMED REALTY 7
ACTIVE DEVELOPMENT Rendering Rendering Rendering 450 Kendall Street Landmark at Eastview III 3737 Market Street Property Market SF Pre-Leased % Anchor Tenant 450 KENDALL STREET (KENDALL G) Cambridge, MA 63,000 - N/A LANDMARK AT EASTVIEW III Tarrytown, NY 297,000 100% Regeneron Pharmaceuticals 3737 MARKET STREET Philadelphia, PA 334,300 55% Penn Medicine TOTAL ACTIVE DEVELOPMENT 694,300 69% BIOMED REALTY 8
ADDITIONAL DEVELOPMENT OPPORTUNITIES Rendering Rendering Rendering Rendering Rendering Gateway / Oyster Point Center for Life Science San Diego Chesterfield 500 Fairview ADDITIONAL NEAR-TERM DEVELOPMENT OPPORTUNITIES INCLUDE: Property Market SF GATEWAY / OYSTER POINT S. San Francisco, CA 400,000 CENTER FOR LIFE SCIENCE San Diego, CA 275,000 CHESTERFIELD Durham, NC 274,000 Total land bank includes additional development potential representing 4.9 million SF 500 FAIRVIEW Seattle, WA 108,000 TOTAL 1,057,000 Note: Development potential square footage represents management s estimates. BIOMED REALTY 9
UNC KENAN-FLAGLER: DISCUSSION MATERIALS MARCH 2014