##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 Form 10-Q
 QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2007.
 Commission File Number: 1-32261
 
 BIOMED REALTY TRUST, INC.
 (Exact name of registrant as specified in its charter)
 Maryland
    
    20-1142292(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)17140 Bernardo Center Drive, Suite 222San Diego, California
    
    92128(Address of Principal Executive Offices)
    
    (Zip Code)
 (858) 485-9840  (Registrants telephone number, including area code)
 
 þ o
  þ o o
 o þ




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##### 



BIOMED REALTY TRUST, INC.
 FORM 10-Q  QUARTERLY REPORT
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2007
 TABLE OF CONTENTS
 PagePART I  FINANCIAL INFORMATION
    
    
    3Item 1
    
    Consolidated Financial Statements
    
    
    3Consolidated Balance Sheets as of March 31, 2007 (Unaudited) and December 31, 2006
    
    
    3Consolidated Statements of Income for the three months ended March 31, 2007 and 2006 (Unaudited)
    
    
    4Consolidated Statements of Cash Flows for the three months ended March 31, 2007 and 2006 (Unaudited)
    
    
    5Notes to Consolidated Financial Statements (Unaudited)
    
    
    6Item 2
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    20Item 3
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    25Item 4
    
    Controls and Procedures
    
    
    26PART II  OTHER INFORMATION
    
    
    26Item 1
    
    Legal Proceedings
    
    
    26Item 1A
    
    Risk Factors
    
    
    27Item 2
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    27Item 3
    
    Defaults Upon Senior Securities
    
    
    27Item 4
    
    Submission of Matters to a Vote of Security Holders
    
    
    27Item 5
    
    Other Information
    
    
    27Item 6
    
    Exhibits
    
    
    27SIGNATURES
    
    
    28EXHIBIT 10.1EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1
  2




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##### Table of Contents



PART 1  FINANCIAL INFORMATION
 
 ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
 BIOMED REALTY TRUST, INC.
 
 CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
 March 31, 2007
    
    
    December 31, 2006(Unaudited)ASSETSInvestments in real estate, net
    
    $
    2,536,428
    
    
    $
    2,457,538Investment in unconsolidated partnership
    
    
    2,429
    
    
    
    2,436Cash and cash equivalents
    
    
    18,711
    
    
    
    25,664Restricted cash
    
    
    6,912
    
    
    
    6,426Accounts receivable, net of allowance for doubtful accounts
of $1,461 and $1,240 as of March 31, 2007 and December 31,
2006, respectively
    
    
    4,669
    
    
    
    5,985Accrued straight-line rents, net
    
    
    24,348
    
    
    
    20,446Acquired above-market leases, net
    
    
    6,899
    
    
    
    7,551Deferred leasing costs, net
    
    
    127,409
    
    
    
    129,322Deferred loan costs, net
    
    
    16,289
    
    
    
    17,608Prepaid expenses
    
    
    3,842
    
    
    
    3,627Other assets
    
    
    41,772
    
    
    
    16,039Total assets
    
    $
    2,789,708
    
    
    $
    2,692,642LIABILITIES AND STOCKHOLDERS EQUITYMortgage notes payable, net
    
    $
    401,680
    
    
    $
    403,836Secured construction loan
    
    
    324,796
    
    
    
    286,355Secured term loan
    
    
    250,000
    
    
    
    250,000Exchangeable senior notes
    
    
    175,000
    
    
    
    175,000Unsecured line of credit
    
    
    62,860
    
    
    
    228,165Security deposits
    
    
    6,762
    
    
    
    7,704Dividends and distributions payable
    
    
    25,503
    
    
    
    19,847Accounts payable, accrued expenses, and other liabilities
    
    
    65,061
    
    
    
    62,602Acquired below-market leases, net
    
    
    24,994
    
    
    
    25,101Total liabilities
    
    
    1,336,656
    
    
    
    1,458,610Minority interests
    
    
    19,179
    
    
    
    19,319Stockholders equity:Preferred stock, $.01 par value, 15,000,000 shares authorized:7.375% Series A cumulative redeemable preferred stock,
$230,000,000 liquidation preference ($25.00 per share),
9,200,000 shares issued and outstanding at March 31, 2007
    
    
    222,413
    
    
    
    Common stock, $.01 par value, 100,000,000 shares authorized,
65,454,789 and 65,425,598 shares issued and outstanding at
March 31, 2007 and December 31, 2006, respectively
    
    
    654
    
    
    
    654Additional paid-in capital
    
    
    1,273,362
    
    
    
    1,272,243Accumulated other comprehensive income
    
    
    8,287
    
    
    
    8,417Dividends in excess of earnings
    
    
    (70,843
    )
    
    
    (66,601
    )Total stockholders equity
    
    
    1,433,873
    
    
    
    1,214,713Total liabilities and stockholders equity
    
    $
    2,789,708
    
    
    $
    2,692,642
  3




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##### Table of Contents



BIOMED REALTY TRUST, INC.
 
 CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
 For the Three Months Ended March 31,2007
    
    
    2006(Unaudited)Revenues:Rental
    
    $
    48,069
    
    
    $
    31,178Tenant recoveries
    
    
    16,619
    
    
    
    12,609Other income
    
    
    4,780
    
    
    
    6Total revenues
    
    
    69,468
    
    
    
    43,793Expenses:Rental operations
    
    
    13,209
    
    
    
    9,543Real estate taxes
    
    
    5,968
    
    
    
    4,242Depreciation and amortization
    
    
    17,391
    
    
    
    13,361General and administrative
    
    
    5,343
    
    
    
    4,347Total expenses
    
    
    41,911
    
    
    
    31,493Income from operations
    
    
    27,557
    
    
    
    12,300Equity in net income of unconsolidated partnership
    
    
    22
    
    
    
    20Interest income
    
    
    231
    
    
    
    160Interest expense
    
    
    (6,852
    )
    
    
    (7,784
    )Income before minority interests
    
    
    20,958
    
    
    
    4,696Minority interests in consolidated partnerships
    
    
    
    
    
    
    54Minority interests in operating partnership
    
    
    (715
    )
    
    
    (276
    )Net income
    
    
    20,243
    
    
    
    4,474Preferred stock dividends
    
    
    (4,194
    )
    
    
    Net income available to common stockholders
    
    $
    16,049
    
    
    $
    4,474Net income per share available to common stockholders:Basic and diluted earnings per share
    
    $
    0.25
    
    
    $
    0.10Weighted-average common shares outstanding:Basic
    
    
    65,289,950
    
    
    
    46,369,605Diluted
    
    
    68,231,124
    
    
    
    49,518,010
  4




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BIOMED REALTY TRUST, INC.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 Three Months EndedMarch 312007
    
    
    2006(Unaudited)Operating activities:Net income
    
    $
    20,243
    
    
    $
    4,474Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    17,391
    
    
    
    13,361Minority interests in consolidated partnerships
    
    
    
    
    
    
    (54
    )Minority interests in operating partnership
    
    
    715
    
    
    
    276Bad debt expense
    
    
    167
    
    
    
    73Revenue reduction attributable to acquired above-market leases
    
    
    652
    
    
    
    592Revenue recognized related to acquired below-market leases
    
    
    (1,189
    )
    
    
    (1,170
    )Compensation expense related to restricted common stock and LTIP units
    
    
    1,119
    
    
    
    784Amortization of deferred loan costs
    
    
    393
    
    
    
    339Amortization of debt premium on mortgage notes payable
    
    
    (206
    )
    
    
    (605
    )Income from unconsolidated partnership
    
    
    (22
    )
    
    
    (20
    )Distributions received from unconsolidated partnership
    
    
    29
    
    
    
    27Changes in operating assets and liabilities:Restricted cash
    
    
    (486
    )
    
    
    (357
    )Accounts receivable
    
    
    1,149
    
    
    
    4,175Accrued straight-line rents
    
    
    (3,902
    )
    
    
    (1,741
    )Deferred leasing costs
    
    
    (3,851
    )
    
    
    (29
    )Prepaid expenses
    
    
    (215
    )
    
    
    (676
    )Other assets
    
    
    (1,342
    )
    
    
    (137
    )Security deposits
    
    
    (942
    )
    
    
    (22
    )Accounts payable, accrued expenses and other liabilities
    
    
    (6,585
    )
    
    
    2,055Net cash provided by operating activities
    
    
    23,118
    
    
    
    21,345Investing activities:Purchases of interests in and additions to investments in real estate and related intangible assets
    
    
    (82,200
    )
    
    
    (9,692
    )Minority interest investment in consolidated partnerships
    
    
    200
    
    
    
    302Receipts of master lease payments
    
    
    232
    
    
    
    300Additions to non-real estate assets
    
    
    (146
    )
    
    
    (334
    )Funds held in escrow for acquisitions
    
    
    (22,000
    )
    
    
    (959
    )Net cash used in investing activities
    
    
    (103,914
    )
    
    
    (10,383
    )Financing activities:Proceeds from preferred stock offering
    
    
    230,000
    
    
    
    Payment of preferred stock offering costs
    
    
    (7,587
    )
    
    
    (Payment)/refund of deferred loan costs
    
    
    (339
    )
    
    
    9Unsecured line of credit proceeds
    
    
    56,950
    
    
    
    13,700Unsecured line of credit repayments
    
    
    (222,255
    )
    
    
    Principal payments on mortgage notes payable
    
    
    (1,512
    )
    
    
    (1,253
    )Secured construction loan proceeds
    
    
    38,441
    
    
    
    Tenant improvement loan repayments
    
    
    29
    
    
    
    Distributions to minority interest in consolidated partnership
    
    
    (37
    )
    
    
    Distributions to operating partnership unit and LTIP unit holders
    
    
    (874
    )
    
    
    (773
    )Dividends paid to common stockholders
    
    
    (18,973
    )
    
    
    (12,592
    )Net cash
provided by/(used in) financing activities
    
    
    73,843
    
    
    
    (909
    )Net (decrease)/increase in cash and cash equivalents
    
    
    (6,953
    )
    
    
    10,053Cash and cash equivalents at beginning of period
    
    
    25,664
    
    
    
    20,312Cash and cash equivalents at end of period
    
    $
    18,711
    
    
    $
    30,365Supplemental disclosure of cash flow information:Cash paid during the period for interest (net of amounts capitalized of $12,260 and $236, respectively)
    
    $
    9,853
    
    
    $
    7,720Supplemental disclosure of non-cash investing and financing activities:Accrual for preferred stock dividends declared
    
    
    4,194
    
    
    
    Accrual for common stock dividends declared
    
    
    20,291
    
    
    
    13,567Accrual for distributions declared for operating partnership unit and LTIP unit holders
    
    
    1,018
    
    
    
    830Accrued additions to real estate and related intangible assets
    
    
    34,590
    
    
    
    2,629Accrued additions to pre-acquisition costs
    
    
    2,504
    
    
    
    
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BIOMED REALTY TRUST, INC.
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 1. Organization and Description of Business
   2. Basis of Presentation and Summary of Significant Accounting Policies
  Principles of Consolidation
  Investments in Partnerships
 Consolidation of Variable Interest Entities Consolidated Financial Statements
 6




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Determining Whether a
General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar
Entity When the Limited Partners Have Certain Rights
   Investments in Real Estate
  March 31, 2007
    
    
    December 31, 2006Land
    
    $
    266,010
    
    
    $
    270,286Ground lease
    
    
    14,210
    
    
    
    14,210Land under development
    
    
    97,273
    
    
    
    85,362Buildings and improvements
    
    
    1,623,553
    
    
    
    1,598,384Construction in progress
    
    
    554,888
    
    
    
    497,971Tenant improvements
    
    
    52,143
    
    
    
    51,9042,608,077
    
    
    
    2,518,117Accumulated depreciation
    
    
    (71,649
    )
    
    
    (60,579
    )$
    2,536,428
    
    
    $
    2,457,538
  Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed
  7




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Deferred Leasing Costs
   Balance atMarch 31,
    
    
    Accumulated2007
    
    
    Amortization
    
    
    NetAcquired in-place leases
    
    $
    164,872
    
    
    $
    (52,723
    )
    
    $
    112,149Acquired management agreements
    
    
    12,658
    
    
    
    (5,067
    )
    
    
    7,591Deferred leasing and other direct costs
    
    
    8,532
    
    
    
    (863
    )
    
    
    7,669$
    186,062
    
    
    $
    (58,653
    )
    
    $
    127,409
  Balance atDecember 31,
    
    
    Accumulated2006
    
    
    Amortization
    
    
    NetAcquired in-place leases
    
    $
    162,935
    
    
    $
    (47,066
    )
    
    $
    115,869Acquired management agreements
    
    
    12,601
    
    
    
    (4,574
    )
    
    
    8,027Deferred leasing and other direct costs
    
    
    6,122
    
    
    
    (696
    )
    
    
    5,426$
    181,658
    
    
    $
    (52,336
    )
    
    $
    129,322
 Revenue Recognition
  
    
    whether the lease stipulates how and on what a tenant improvement allowance may be spent;
    
    whether the tenant or landlord retain legal title to the improvements;
    
    the uniqueness of the improvements;
    
    the expected economic life of the tenant improvements relative to the length of the lease;
    
    the responsible party for construction cost overruns; and
    
    who constructs or directs the construction of the improvements.
 8




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##### Table of Contents



March 31,
    
    
    December 31,2007
    
    
    2006Acquired above-market leases
    
    $
    12,084
    
    
    $
    12,084Accumulated amortization
    
    
    (5,185
    )
    
    
    (4,533
    )$
    6,899
    
    
    $
    7,551
  March 31,
    
    
    December 31,2007
    
    
    2006Acquired below-market leases
    
    $
    34,577
    
    
    $
    33,495Accumulated amortization
    
    
    (9,583
    )
    
    
    (8,394
    )$
    24,994
    
    
    $
    25,101
 Reporting Revenue Gross as a Principal versus Net as an Agent
  Incentive Awards
 Share-Based
Payment
 9




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Managements Estimates
   3. Minority Interests
   March 31, 2007
    
    
    December 31, 2006Partnership units
    
    
    Percentage of
    
    
    Partnership units
    
    
    Percentage ofand LTIP units
    
    
    total
    
    
    and LTIP units
    
    
    totalBioMed Realty Trust
    
    
    65,298,702
    
    
    
    95.7
    %
    
    
    65,151,884
    
    
    
    95.8
    %Minority interest consisting
of:Partnership and LTIP units held by
employees and related parties
    
    
    2,726,172
    
    
    
    4.0
    %
    
    
    2,673,172
    
    
    
    3.9
    %Partnership units held by third
parties
    
    
    190,392
    
    
    
    0.3
    %
    
    
    190,392
    
    
    
    0.3
    %Total
    
    
    68,215,266
    
    
    
    100.0
    %
    
    
    68,015,448
    
    
    
    100.0
    %
  4. Stockholders Equity
  10




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##### Table of Contents



Common Stock, Partnership Units and LTIP Units
  7.375% Series A Cumulative Redeemable Preferred Stock
 th
 Dividends and Distributions
 Dividend and
    
    Dividend andDistribution
    
    Distribution AmountDeclaration Date
    
    Share Class
    
    Amount Per Share
    
    Period Covered
    
    Payable Date
    
    (in thousands)March 15, 2007
    
    Common stock and
operating
partnership and
LTIP units
    
    $
    0.31000
    
    
    January 1, 2007 to
March 31, 2007
    
    April 16, 2007
    
    $
    21,309March 15, 2007
    
    Series A preferred
stock
    
    $
    0.45582
    
    
    January 18, 2007 to
April 16, 2007
    
    April 16, 2007
    
    
    4,194
 Total 2007 dividends and distributions declared through March 31, 2007:Common stock, operating partnership units, and LTIP units
    
    
    21,309Series A preferred stock
    
    
    4,194$
    25,503
 11




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Accumulated Other Comprehensive Income
  Three Months EndedMarch 31,2007
    
    
    2006Net income available to common stockholders
    
    
    16,049
    
    
    
    4,474Unrealized gain/(loss) on interest rate swap agreements
    
    
    (130
    )
    
    
    3,334Comprehensive income
    
    
    15,919
    
    
    
    7,808
 5. Mortgage Notes Payable
  StatedFixed
    
    
    Effective
    
    
    Principal BalanceInterest
    
    
    Interest
    
    
    March 31,
    
    
    December 31,Rate
    
    
    Rate
    
    
    2007
    
    
    2006
    
    
    Maturity DateArdentech Court
    
    
    7.25
    %
    
    
    5.06
    %
    
    $
    4,634
    
    
    $
    4,658
    
    
    July 1, 2012Bayshore Boulevard
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    15,633
    
    
    
    15,730
    
    
    January 1, 2010Bridgeview Technology Park I
    
    
    8.07
    %
    
    
    5.04
    %
    
    
    11,593
    
    
    
    11,625
    
    
    January 1, 2011Eisenhower Road
    
    
    5.80
    %
    
    
    4.63
    %
    
    
    2,151
    
    
    
    2,164
    
    
    May 5, 2008Elliott Avenue
    
    
    7.38
    %
    
    
    4.63
    %
    
    
    15,887
    
    
    
    16,020
    
    
    November 24, 200740 Erie Street
    
    
    7.34
    %
    
    
    4.90
    %
    
    
    18,421
    
    
    
    18,676
    
    
    August 1, 2008500 Kendall
Street (Kendall D)
    
    
    6.38
    %
    
    
    5.45
    %
    
    
    70,591
    
    
    
    70,963
    
    
    December 1, 2018Lucent Drive
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    5,687
    
    
    
    5,733
    
    
    January 21, 2015Monte Villa Parkway
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    9,517
    
    
    
    9,576
    
    
    January 1, 2010Nancy Ridge Drive
    
    
    7.15
    %
    
    
    5.38
    %
    
    
    6,849
    
    
    
    6,872
    
    
    September 1, 2012Road to the Cure
    
    
    6.70
    %
    
    
    5.78
    %
    
    
    15,588
    
    
    
    15,657
    
    
    January 31, 2014Science Center Drive
    
    
    7.65
    %
    
    
    5.04
    %
    
    
    11,406
    
    
    
    11,444
    
    
    July 1, 2011Shady Grove Road
    
    
    5.97
    %
    
    
    5.97
    %
    
    
    147,000
    
    
    
    147,000
    
    
    September 1, 2016Sidney Street
    
    
    7.23
    %
    
    
    5.11
    %
    
    
    30,551
    
    
    
    30,732
    
    
    June 1, 2012Towne Centre Drive
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    21,737
    
    
    
    21,872
    
    
    January 1, 2010900 Uniqema Boulevard
    
    
    8.61
    %
    
    
    5.61
    %
    
    
    1,614
    
    
    
    1,648
    
    
    May 1, 2015388,859
    
    
    
    390,370Unamortized premiums
    
    
    
    
    
    
    
    
    
    
    12,821
    
    
    
    13,466$
    401,680
    
    
    $
    403,836
  6. Credit Facilities, Exchangeable Notes, and Other Debt Instruments
   12




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13




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##### Table of Contents



2007
    
    $
    20,0652008
    
    
    24,4552009
    
    
    392,6822010
    
    
    297,4452011
    
    
    26,220Thereafter
    
    
    440,648$
    1,201,515
 14




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##### Table of Contents



7. Earnings Per Share
  Earnings per Share
 For the Three Months EndedMarch 31,2007
    
    
    2006Net income attributable to common shares
    
    $
    16,049
    
    
    $
    4,474Minority interests in operating partnership
    
    
    715
    
    
    
    276Adjusted net income attributable to common shares
    
    $
    16,764
    
    
    $
    4,750Weighted-average common shares outstanding:Basic
    
    
    65,289,950
    
    
    
    46,369,605Incremental shares from assumed conversion/exercise:Stock warrant
    
    
    
    
    
    
    121,234Unvested restricted stock and LTIP units using the treasury
method
    
    
    26,182
    
    
    
    163,607Operating partnership and LTIP units
    
    
    2,914,992
    
    
    
    2,863,564Diluted
    
    
    68,231,124
    
    
    
    49,518,010Earnings per share  basic and diluted
    
    $
    0.25
    
    
    $
    0.10
  8. Incentive Award Plan
   15




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Unvested
    
    Weighted-Restricted Shares and
    
    Average Grant-LTIP Units
    
    Date Fair-ValueBalance at January 1, 2007
    
    
    424,380
    
    
    $
    23.79Granted
    
    
    302,500
    
    
    
    29.83Forfeited
    
    
    (3,809
    )
    
    
    28.16Vested
    
    
    (199,818
    )
    
    
    19.96Balance at March 31, 2007
    
    
    523,253
    
    
    
    28.71
 Unvested
    
    Weighted-Restricted Shares and
    
    Average Grant-LTIP Units
    
    Date Fair-ValueBalance at January 1, 2006
    
    
    344,492
    
    
    $
    17.70Granted
    
    
    147,200
    
    
    
    27.11Vested
    
    
    (153,194
    )
    
    
    16.53Balance at March 31, 2006
    
    
    338,498
    
    
    
    22.32
 9. Segment Information
 Disclosures about Segments of an Enterprise and Related Information
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10. Property Acquisitions
  Acquired Above
    
    Deferred Leasing Costs
    
    Acquired Below
    
    Mortgage
    
    Mortgage
    
    TotalAcquisition
    
    Investments
    
    Market
    
    In place
    
    Management
    
    Market
    
    Note
    
    Note
    
    CashProperty
    
    Date
    
    in Real Estate
    
    Lease
    
    Lease
    
    Fee
    
    Lease
    
    Assumed
    
    Premium
    
    ConsiderationTorreyana Road
    
    
    3/22/2007
    
    
    $
    32,127
    
    
    $
    
    
    
    $
    1,937
    
    
    $
    57
    
    
    $
    (1,082
    )
    
    $
    
    
    
    $
    
    
    
    $
    33,039Intangible
amortization life
(in months)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    18
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    
  11. Derivatives and Other Financial Instruments
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##### Table of Contents



12. New Accounting Standards
 Accounting for Uncertainty in Income
Taxes, an Interpretation of FASB Statement No. 109
 Fair-Value Measurements
 The Fair-Value Option for Financial Assets and
Financial Liabilities
 13. Subsequent Events
  19




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##### Table of Contents



ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Overview
    Factors Which May Influence Future Operations
  20




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##### Table of Contents



Critical Accounting Policies
  New Accounting Standards
 Accounting for Uncertainty in Income
Taxes, an Interpretation of FASB Statement No. 109
 Fair-Value Measurements
 The Fair-Value Option for Financial Assets and
Financial Liabilities
 Results of Operations
 Comparison of the Three Months Ended March 31, 2007 to the Three Months Ended March 31, 2006
 Rental Revenues.
 Tenant Recoveries.
 Other Income.
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##### Table of Contents



Rental Operations Expense.
 Real Estate Tax Expense.
 Depreciation and Amortization Expense.
 General and Administrative Expenses.
 Interest Income.
 Interest Expense.
 Minority Interest in Consolidated Partnerships.
 Minority Interests in Operating Partnership.
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##### Table of Contents



Cash Flows
 Comparison of Three Months Ended March 31, 2007 to Three Months Ended March 31, 2006
 Three Months Ended March 31,2007
    
    2006
    
    Change(In thousands)Net cash provided by operating activities
    
    $
    23,118
    
    
    $
    21,345
    
    
    $
    1,773Net cash used in investing activities
    
    
    (103,914
    )
    
    
    (10,383
    )
    
    
    (93,531
    )Net cash provided by/(used in) financing activities
    
    
    73,843
    
    
    
    (909
    )
    
    
    74,752Ending cash and cash equivalents balance
    
    
    18,711
    
    
    
    30,365
    
    
    
    (11,654
    )
     Funds from Operations
   For the Three MonthsEnded March 31,2007
    
    
    2006Net income available to common stockholders
    
    $
    16,049
    
    
    $
    4,474AdjustmentsMinority interests in operating partnership
    
    
    715
    
    
    
    276Depreciation and amortization  real estate assets
    
    
    17,411
    
    
    
    13,381Funds from operations
    
    $
    34,175
    
    
    $
    18,131Funds from operations per share  diluted
    
    $
    0.50
    
    
    $
    0.37Weighted-average common shares outstanding  diluted
    
    
    68,231,124
    
    
    
    49,518,010
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##### Table of Contents



Liquidity and Capital Resources
  
    
    interest expense and scheduled principal payments on outstanding indebtedness,
    
    general and administrative expenses, and
    
    capital expenditures, tenant improvements and leasing commissions.
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Off Balance Sheet Arrangements
   Cash Distribution Policy
 i.e.
  Inflation
   
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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ITEM 4. CONTROLS AND PROCEDURES
    
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
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ITEM 1A. RISK FACTORS
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
 ExhibitNumber
    
    Description of Exhibit10.1
    
    Second Amendment to Real Estate Purchase and Sale Agreement, dated as of April 3, 2007, among SP-K
Development, LLC, SP-B1 Development, LLC, SP-A Development, LLC, SP-B2 Development, LLC, SP-D
Development, LLC, SP-E Development, LLC, SP-J Development, LLC, 110 Munson Street, LLC, SP-C
Development, LLC, Lyme Properties LLC and BioMed Realty, L.P.31.1
    
    Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C.
Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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SIGNATURES
  BioMed Realty Trust, Inc./s/ ALAN D. GOLDAlan D. GoldChairman of the Board, President and Chief
Executive Officer (Principal Executive Officer)/s/ KENT GRIFFINKent GriffinChief Financial Officer
(Principal Financial Officer)  28