##### 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 September 30, 2005.
 Commission File Number: 1-32261
 
 BIOMED REALTY TRUST, INC.
 (Exact name of registrant as specified in its charter)
 Maryland(State or other jurisdiction of
    
    20-1142292incorporation or organization)
    
    (I.R.S. Employer 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
 o þ
 o þ




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BIOMED REALTY TRUST, INC.
 FORM 10-Q  QUARTERLY REPORT
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2005
 TABLE OF CONTENTS
 PagePART I  FINANCIAL INFORMATION
    
    
    3Item 1 Consolidated Financial Statements
    
    
    3Consolidated Balance Sheets for BioMed Realty Trust, Inc. as of September 30, 2005
(Unaudited) and December 31, 2004 (Unaudited)
    
    
    3Consolidated Statements of Income for BioMed Realty Trust, Inc. for the three months
ended September 30, 2005 (Unaudited), for BioMed Realty Trust, Inc. for the period from
August 11, 2004 through September 30, 2004 (Unaudited), and for Inhale 201 Industrial
Road, L.P. (Predecessor) for the period from July 1, 2004 through August 17, 2004
(Unaudited)
    
    
    4Consolidated Statements of Income for BioMed Realty Trust, Inc. for the nine months
ended September 30, 2005 (Unaudited), for BioMed Realty Trust, Inc. for the period from
August 11, 2004 through September 30, 2004 (Unaudited), and for Inhale 201 Industrial
Road, L.P. (Predecessor) for the period from January 1, 2004 through August 17, 2004
(Unaudited)
    
    
    5Consolidated Statements of Cash Flows for BioMed Realty Trust, Inc. for the nine months
ended September 30, 2005 (Unaudited) and for BioMed Realty Trust, Inc. and Inhale 201
Industrial Road, L.P. (Predecessor) for the nine months ended September 30, 2004
(Unaudited)
    
    
    6Notes to Consolidated Financial Statements (Unaudited)
    
    
    7Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    14Item 3 Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 4 Controls and Procedures
    
    
    24PART II  OTHER INFORMATION
    
    
    24Item 1 Legal Proceedings
    
    
    24Item 2 Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    24Item 3 Defaults Upon Senior Securities
    
    
    24Item 4 Submission of Matters to a Vote of Security Holders
    
    
    25Item 5 Other Information
    
    
    25Item 6 Exhibits
    
    
    25SIGNATURES
    
    
    26EXHIBIT 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
  September 30, 2005
    
    
    December 31, 2004(In thousands, except share data)ASSETSInvestments in real estate, net
    
    $
    1,072,427
    
    
    $
    468,488Investment in unconsolidated partnership
    
    
    2,492
    
    
    
    2,470Cash and cash equivalents
    
    
    74,495
    
    
    
    27,869Restricted cash
    
    
    5,866
    
    
    
    2,470Accounts receivable, net
    
    
    5,819
    
    
    
    1,837Accrued straight-line rents, net
    
    
    7,166
    
    
    
    3,306Acquired above market leases, net
    
    
    7,437
    
    
    
    8,006Deferred leasing costs, net
    
    
    138,008
    
    
    
    61,503Deferred loan costs, net
    
    
    5,196
    
    
    
    1,700Prepaid expenses
    
    
    5,216
    
    
    
    1,531Other assets
    
    
    6,359
    
    
    
    2,543Total assets
    
    $
    1,330,481
    
    
    $
    581,723LIABILITIES AND STOCKHOLDERS EQUITYMortgage notes payable, net
    
    $
    248,004
    
    
    $
    102,236Secured term loan
    
    
    250,000
    
    
    
    Security deposits
    
    
    6,222
    
    
    
    4,831Due to affiliates
    
    
    
    
    
    
    53Dividends and distributions payable
    
    
    13,367
    
    
    
    9,249Accounts payable and accrued expenses
    
    
    25,234
    
    
    
    7,529Acquired lease obligations, net
    
    
    30,822
    
    
    
    13,741Total liabilities
    
    
    573,649
    
    
    
    137,639Minority interests
    
    
    21,278
    
    
    
    22,267Stockholders equity:Preferred stock, $.01 par value, 15,000,000
shares authorized, none issued or outstanding
    
    
    
    
    
    
    Common stock, $.01 par value, 100,000,000
shares authorized, 46,635,890 and 31,386,333
shares issued and outstanding at September
30, 2005 and December 31, 2004, respectively
    
    
    466
    
    
    
    314Additional paid-in capital
    
    
    760,834
    
    
    
    434,075Deferred compensation
    
    
    (4,066
    )
    
    
    (4,182
    )Accumulated other comprehensive income
    
    
    3,802
    
    
    
    Dividends in excess of earnings
    
    
    (25,482
    )
    
    
    (8,390
    )Total stockholders equity
    
    
    735,554
    
    
    
    421,817Total liabilities and stockholders equity
    
    $
    1,330,481
    
    
    $
    581,723
  3




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##### Table of Contents



BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
 
 CONSOLIDATED STATEMENTS OF INCOME
  INHALE 201INDUSTRIAL ROAD,L.P.BIOMED REALTY TRUST, INC.
    
    
    (PREDECESSOR)Three Months
    
    
    Period August 11, 2004
    
    
    Period July 1, 2004Ended
    
    
    through
    
    
    throughSeptember 30, 2005
    
    
    September 30, 2004
    
    
    August 17, 2004(In thousands, except per share data)Revenues:Rental
    
    $
    28,593
    
    
    $
    6,107
    
    
    $
    796Tenant recoveries
    
    
    12,225
    
    
    
    2,878
    
    
    
    76Other income
    
    
    512
    
    
    
    
    
    
    
    Total revenues
    
    
    41,330
    
    
    
    8,985
    
    
    
    872Expenses:Rental operations
    
    
    9,763
    
    
    
    2,739
    
    
    
    5Real estate taxes
    
    
    3,573
    
    
    
    800
    
    
    
    41Depreciation and amortization
    
    
    12,164
    
    
    
    2,251
    
    
    
    122General and administrative
    
    
    3,756
    
    
    
    1,195
    
    
    
    Total expenses
    
    
    29,256
    
    
    
    6,985
    
    
    
    168Income from operations
    
    
    12,074
    
    
    
    2,000
    
    
    
    704Equity in net income of unconsolidated partnership
    
    
    20
    
    
    
    
    
    
    
    Interest income
    
    
    807
    
    
    
    124
    
    
    
    Interest expense
    
    
    (7,422
    )
    
    
    (218
    )
    
    
    (312
    )Income before minority interests
    
    
    5,479
    
    
    
    1,906
    
    
    
    392Minority interest in consolidated partnership
    
    
    45
    
    
    
    58
    
    
    
    Minority interests in operating partnership
    
    
    (323
    )
    
    
    (137
    )
    
    
    Net income
    
    $
    5,201
    
    
    $
    1,827
    
    
    $
    392Basic earnings per share
    
    $
    0.11
    
    
    $
    0.06Diluted earnings per share
    
    $
    0.11
    
    
    $
    0.06Weighted-average common shares outstanding:Basic
    
    
    46,287,617
    
    
    
    30,673,883Diluted
    
    
    49,444,409
    
    
    
    30,754,840
  4




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BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
 
 CONSOLIDATED STATEMENTS OF INCOME
  INHALE 201INDUSTRIAL ROAD,BIOMED REALTY TRUST, INC.
    
    
    L.P. (PREDECESSOR)Period January 1,Nine Months
    
    
    Period August 11, 2004
    
    
    2004Ended
    
    
    through
    
    
    throughSeptember 30, 2005
    
    
    September 30, 2004
    
    
    August 17, 2004(In thousands, except per share data)Revenues:Rental
    
    $
    62,821
    
    
    $
    6,107
    
    
    $
    3,933Tenant recoveries
    
    
    28,035
    
    
    
    2,878
    
    
    
    375Other income
    
    
    3,508
    
    
    
    
    
    
    
    Total revenues
    
    
    94,364
    
    
    
    8,985
    
    
    
    4,308Expenses:Rental operations
    
    
    22,879
    
    
    
    2,739
    
    
    
    131Real estate taxes
    
    
    7,836
    
    
    
    800
    
    
    
    222Depreciation and amortization
    
    
    26,832
    
    
    
    2,251
    
    
    
    600General and administrative
    
    
    9,001
    
    
    
    1,195
    
    
    
    Total expenses
    
    
    66,548
    
    
    
    6,985
    
    
    
    953Income from operations
    
    
    27,816
    
    
    
    2,000
    
    
    
    3,355Equity in net income of unconsolidated partnership
    
    
    91
    
    
    
    
    
    
    
    Interest income
    
    
    987
    
    
    
    124
    
    
    
    Interest expense
    
    
    (15,645
    )
    
    
    (218
    )
    
    
    (1,700
    )Income before minority interests
    
    
    13,249
    
    
    
    1,906
    
    
    
    1,655Minority interest in consolidated partnership
    
    
    219
    
    
    
    58
    
    
    
    Minority interests in operating partnership
    
    
    (991
    )
    
    
    (137
    )
    
    
    Net income
    
    $
    12,477
    
    
    $
    1,827
    
    
    $
    1,655Basic earnings per share
    
    $
    0.34
    
    
    $
    0.06Diluted earnings per share
    
    $
    0.34
    
    
    $
    0.06Weighted-average common shares outstanding:Basic
    
    
    36,406,068
    
    
    
    30,673,883Diluted
    
    
    39,545,665
    
    
    
    30,754,840
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BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
  BIOMED REALTYTRUST, INC. ANDBIOMED
    
    
    INHALE 201REALTY
    
    
    INDUSTRIAL ROAD,TRUST, INC.
    
    
    L.P. (PREDECESSOR)Nine Months Ended
    
    
    Nine Months EndedSeptember 30, 2005
    
    
    September 30, 2004(in thousands)Operating activities:Net income
    
    $
    12,477
    
    
    $
    3,482Adjustments to reconcile net income to net cash provided by operating activities:Minority interest in consolidated partnership
    
    
    (219
    )
    
    
    (58
    )Minority interests in operating partnership
    
    
    991
    
    
    
    137Depreciation and amortization
    
    
    26,832
    
    
    
    2,851Bad debt expense
    
    
    171
    
    
    
    Revenue reduction attributable to acquired above market leases
    
    
    1,189
    
    
    
    160Revenue
recognized attributable to acquired lease obligations
    
    
    (2,157
    )
    
    
    (49
    )Vesting of restricted common stock
    
    
    3,007
    
    
    
    328Amortization of loan costs
    
    
    2,675
    
    
    
    49Interest expense reduction for amortization of debt premium
    
    
    (1,280
    )
    
    
    Income from unconsolidated partnership
    
    
    (91
    )
    
    
    Distributions received from unconsolidated partnership
    
    
    69
    
    
    
    Changes in operating assets and liabilities:Restricted cash
    
    
    (3,396
    )
    
    
    (854
    )Accounts receivable
    
    
    (4,153
    )
    
    
    (1,074
    )Due from affiliates
    
    
    
    
    
    
    (32
    )Accrued straight-line rents
    
    
    (3,860
    )
    
    
    (830
    )Deferred leasing costs
    
    
    (1,239
    )
    
    
    Prepaid expenses
    
    
    (3,685
    )
    
    
    (1,601
    )Other assets
    
    
    (3,816
    )
    
    
    (272
    )Security deposits
    
    
    683
    
    
    
    Due to affiliates
    
    
    (53
    )
    
    
    91Accounts payable and accrued expenses
    
    
    15,274
    
    
    
    5,861Net cash provided by operating activities
    
    
    39,419
    
    
    
    8,189Investing activities:Purchases of interests in and additions to investments in real estate and
related intangible assets
    
    
    (539,003
    )
    
    
    (396,457
    )Security deposits received from prior owners of real estate
    
    
    708
    
    
    
    3,258Accrued construction and tenant improvement costs
    
    
    6,233
    
    
    
    Receipts of master lease payments (reduction to investments in real estate)
    
    
    1,664
    
    
    
    Funds held in escrow for acquisitions
    
    
    
    
    
    
    (1,850
    )Repayment of related party payables
    
    
    
    
    
    
    (3,000
    )Net cash used in investing activities
    
    
    (530,398
    )
    
    
    (398,049
    )Financing activities:Proceeds from common stock offering
    
    
    340,256
    
    
    
    465,753Payment of offering costs
    
    
    (16,236
    )
    
    
    (36,734
    )Payment of loan costs
    
    
    (6,171
    )
    
    
    (1,222
    )Line of credit proceeds
    
    
    227,175
    
    
    
    Line of credit payments
    
    
    (227,175
    )
    
    
    Secured term loan proceeds
    
    
    250,000
    
    
    
    Unsecured term loan proceeds
    
    
    100,000
    
    
    
    Unsecured term loan payments
    
    
    (100,000
    )
    
    
    Principal payments on mortgage notes payable
    
    
    (2,468
    )
    
    
    (44
    )Distributions to operating partnership unit holders
    
    
    (2,325
    )
    
    
    Dividends paid
    
    
    (25,451
    )
    
    
    Distributions to owners of Predecessor
    
    
    
    
    
    
    (1,187
    )Net cash provided by financing activities
    
    
    537,605
    
    
    
    426,566Net increase in cash and cash equivalents
    
    
    46,626
    
    
    
    36,706Cash and cash equivalents at beginning of period
    
    
    27,869
    
    
    
    157Cash and cash equivalents at end of period
    
    $
    74,495
    
    
    $
    36,863Supplemental disclosure of cash flow information:Cash paid during the period for interest (net of amounts capitalized of
$446 and $0, respectively)
    
    $
    12,827
    
    
    $
    1,995Supplemental disclosure of non-cash investing and financing activities:Accrual for dividends declared
    
    
    12,592
    
    
    
    4,698Accrual for distributions declared for operating partnership unit holders
    
    
    775
    
    
    
    357Restricted stock awards
    
    
    2,891
    
    
    
    4,997Mortgage loans assumed (includes premium of $11,312 and $4,730, respectively)
    
    
    149,516
    
    
    
    47,642Historic cost basis of assets transferred from Predecessor (including $2,061
of accrued straight-line rents as of August 17, 2004)
    
    
    
    
    
    
    49,592Operating partnership units issued for interests in certain contributed properties
    
    
    
    
    
    
    21,666Investment in unconsolidated partnership acquired by issuing operating partnership
units
    
    
    
    
    
    
    2,508Distributions in excess of equity balance to owners of Predecessor
    
    
    
    
    
    
    7,061Accrual for offering costs
    
    
    
    
    
    
    (602
    )
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BIOMED REALTY TRUST, INC. AND
INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (Unaudited)
 1. Organization and Description of Business
     Business Combinations
 7




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2. Basis of Presentation and Summary of Significant Accounting Policies
  Principles of Consolidation
  Investments in Real Estate
  September 30, 2005
    
    
    December 31, 2004Land
    
    $
    122,984
    
    
    $
    68,762Ground lease
    
    
    14,210
    
    
    
    14,210Buildings and improvements
    
    
    917,977
    
    
    
    388,502Construction in process
    
    
    19,478
    
    
    
    Tenant improvements
    
    
    13,199
    
    
    
    2831,087,848
    
    
    
    471,757Accumulated depreciation
    
    
    (15,421
    )
    
    
    (3,269
    )$
    1,072,427
    
    
    $
    468,488
  Revenue Recognition
  Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed
  8




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Income Taxes
  Managements Estimates
  3. Minority Interests
  4. Mortgage Notes Payable
  StatedFixed
    
    
    Effective
    
    
    
    
    
    
    Unamortized
    
    
    Carrying
    
    
    CarryingInterest
    
    
    Interest
    
    
    Principal
    
    
    Premium
    
    
    Value at
    
    
    Value atRate
    
    
    Rate
    
    
    Amount
    
    
    Amount
    
    
    September 30, 2005
    
    
    December 31, 2004
    
    
    Maturity DateArdentech Court
    
    
    7.25
    %
    
    
    5.06
    %
    
    $
    4,767
    
    
    $
    552
    
    
    $
    5,319
    
    
    $
    5,440
    
    
    July 1, 2012Bayshore Boulevard
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    16,199
    
    
    
    
    
    
    
    16,199
    
    
    
    16,438
    
    
    January 1, 2010Bridgeview
    
    
    8.07
    %
    
    
    5.04
    %
    
    
    11,759
    
    
    
    1,627
    
    
    
    13,386
    
    
    
    13,681
    
    
    January 1, 2011Eisenhower Road
    
    
    5.80
    %
    
    
    4.63
    %
    
    
    2,218
    
    
    
    61
    
    
    
    2,279
    
    
    
    2,331
    
    
    May 5, 2008Elliott Avenue
    
    
    7.38
    %
    
    
    4.63
    %
    
    
    16,646
    
    
    
    829
    
    
    
    17,475
    
    
    
    18,107
    
    
    November 24, 200740 Erie Street
    
    
    7.34
    %
    
    
    4.90
    %
    
    
    19,810
    
    
    
    1,193
    
    
    
    21,003
    
    
    
    
    
    
    August 1, 2008Kendall Square D
    
    
    6.38
    %
    
    
    5.45
    %
    
    
    72,739
    
    
    
    5,384
    
    
    
    78,123
    
    
    
    
    
    
    December 1, 2018Lucent Drive
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    5,943
    
    
    
    
    
    
    
    5,943
    
    
    
    
    
    
    January 21, 2015Monte Villa Parkway
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    9,861
    
    
    
    
    
    
    
    9,861
    
    
    
    10,007
    
    
    January 1, 2010Nancy Ridge Drive
    
    
    7.15
    %
    
    
    5.57
    %
    
    
    6,971
    
    
    
    725
    
    
    
    7,696
    
    
    
    
    
    
    September 1, 2012Science Center Drive
    
    
    7.65
    %
    
    
    5.04
    %
    
    
    11,610
    
    
    
    1,485
    
    
    
    13,095
    
    
    
    13,376
    
    
    July 1, 2011Sidney Street
    
    
    7.23
    %
    
    
    5.11
    %
    
    
    31,592
    
    
    
    3,510
    
    
    
    35,102
    
    
    
    
    
    
    June 1, 2012Towne Centre Drive
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    22,523
    
    
    
    
    
    
    
    22,523
    
    
    
    22,856
    
    
    January 1, 2010$
    232,638
    
    
    $
    15,366
    
    
    $
    248,004
    
    
    $
    102,236
 9




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5. Credit Facilities
    6. Earnings Per Share
  10




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Earnings per Share
 PeriodFor the Nine
    
    
    For the Three
    
    
    August 11, 2004Months Ended
    
    
    Months Ended
    
    
    throughSeptember 30, 2005
    
    
    September 30, 2005
    
    
    September 30, 2004Net income attributable to common shares
    
    $
    12,477
    
    
    $
    5,201
    
    
    $
    1,827Operating partnership unit share in earnings of minority interest
    
    
    991
    
    
    
    323
    
    
    
    137Adjusted net income attributable to common shares
    
    $
    13,468
    
    
    $
    5,524
    
    
    $
    1,964Weighted-average common shares outstanding:Basic
    
    
    36,406,068
    
    
    
    46,287,617
    
    
    
    30,673,883Incremental shares from assumed conversion/exercise:Stock warrant
    
    
    87,038
    
    
    
    103,123
    
    
    
    34,170Vesting of restricted stock
    
    
    181,995
    
    
    
    183,105
    
    
    
    46,787Operating partnership units (1)
    
    
    2,870,564
    
    
    
    2,870,564
    
    
    
    Diluted
    
    
    39,545,665
    
    
    
    49,444,409
    
    
    
    30,754,840Earnings per share  basic and diluted
    
    $
    0.34
    
    
    $
    0.11
    
    
    $
    0.06
 
 (1)
    
    For the period from August 11, 2004 through September 30, 2004, 2,177,347 Units, representing
the weighted-average Units outstanding for the period, were excluded from the calculation of
diluted weighted-average shares because they were anti-dilutive. 7. Incentive Award Plan
   8. Segment Information
   11




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##### Table of Contents



New York
    
    
    
    
    
    
    
    
    
    
    CorporateSan
    
    
    
    
    
    
    
    
    
    
    and
    
    
    
    
    
    
    
    
    
    
    andBoston
    
    
    Francisco
    
    
    San Diego
    
    
    Seattle
    
    
    New Jersey
    
    
    Pennsylvania
    
    
    Maryland
    
    
    Other
    
    
    TotalRental revenues and
tenant recoveries
    
    $
    22,855
    
    
    $
    11,153
    
    
    $
    11,925
    
    
    $
    6,594
    
    
    $
    24,929
    
    
    $
    10,357
    
    
    $
    3,062
    
    
    $
    (19
    )
    
    $
    90,856Rental operations and real
estate tax expenses
    
    
    5,112
    
    
    
    1,510
    
    
    
    2,618
    
    
    
    866
    
    
    
    16,421
    
    
    
    4,666
    
    
    
    300
    
    
    
    (778
    )
    
    
    30,715Net operating income
    
    
    17,743
    
    
    
    9,643
    
    
    
    9,307
    
    
    
    5,728
    
    
    
    8,508
    
    
    
    5,691
    
    
    
    2,762
    
    
    
    759
    
    
    
    60,141Equity in net income of
unconsolidated partnership
    
    
    
    
    
    
    
    
    
    
    91
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    91Other income
    
    
    
    
    
    
    3,290
    
    
    
    211
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    3,508Interest income
    
    
    28
    
    
    
    98
    
    
    
    16
    
    
    
    4
    
    
    
    12
    
    
    
    17
    
    
    
    2
    
    
    
    810
    
    
    
    987Depreciation and amortization
    
    
    (7,072
    )
    
    
    (3,973
    )
    
    
    (5,111
    )
    
    
    (2,388
    )
    
    
    (4,788
    )
    
    
    (2,971
    )
    
    
    (529
    )
    
    
    
    
    
    
    (26,832
    )General and administrative
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,001
    )
    
    
    (9,001
    )Interest expense
    
    
    (2,458
    )
    
    
    (1,028
    )
    
    
    (1,293
    )
    
    
    (1,000
    )
    
    
    
    
    
    
    (81
    )
    
    
    
    
    
    
    (9,785
    )
    
    
    (15,645
    )Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    219
    
    
    
    
    
    
    
    (991
    )
    
    
    (772
    )Net income
    
    $
    8,241
    
    
    $
    8,030
    
    
    $
    3,221
    
    
    $
    2,344
    
    
    $
    3,732
    
    
    $
    2,875
    
    
    
    2,235
    
    
    $
    (18,201
    )
    
    $
    12,477Investment in unconsolidated
partnership
    
    
    
    
    
    
    
    
    
    $
    2,492
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,492Total assets
    
    $
    588,555
    
    
    $
    184,201
    
    
    $
    154,954
    
    
    $
    68,660
    
    
    $
    107,727
    
    
    $
    122,108
    
    
    $
    31,952
    
    
    $
    72,324
    
    
    $
    1,330,481
 New York
    
    
    
    
    
    
    
    
    
    CorporateSan
    
    
    
    
    
    
    
    
    
    and
    
    
    
    
    
    
    
    
    
    andBoston
    
    Francisco
    
    San Diego
    
    Seattle
    
    New Jersey
    
    Pennsylvania
    
    Maryland
    
    Other
    
    Total% of total revenues
    
    
    25.2
    %
    
    
    12.3
    %
    
    
    13.1
    %
    
    
    7.3
    %
    
    
    27.4
    %
    
    
    11.4
    %
    
    
    3.4
    %
    
    
    (0.1
    )%
    
    
    100.0
    %% of total rental operations expenses
    
    
    16.6
    %
    
    
    4.9
    %
    
    
    8.5
    %
    
    
    2.8
    %
    
    
    53.5
    %
    
    
    15.2
    %
    
    
    1.0
    %
    
    
    (2.5
    )%
    
    
    100.0
    %% of total net operating income
    
    
    29.5
    %
    
    
    16.0
    %
    
    
    15.5
    %
    
    
    9.5
    %
    
    
    14.1
    %
    
    
    9.5
    %
    
    
    4.6
    %
    
    
    1.3
    %
    
    
    100.0
    %
  New York
    
    
    
    
    
    
    
    
    
    
    CorporateSan
    
    
    
    
    
    
    
    
    
    
    and
    
    
    
    
    
    
    
    
    
    
    andBoston
    
    
    Francisco
    
    
    San Diego
    
    
    Seattle
    
    
    New Jersey
    
    
    Pennsylvania
    
    
    Maryland
    
    
    Other
    
    
    TotalRental revenues and
tenant recoveries
    
    $
    16,881
    
    
    $
    3,854
    
    
    $
    4,104
    
    
    $
    2,169
    
    
    $
    8,880
    
    
    $
    3,938
    
    
    $
    1,020
    
    
    $
    (28
    )
    
    $
    40,818Rental operations and real
estate tax expenses
    
    
    3,915
    
    
    
    255
    
    
    
    938
    
    
    
    258
    
    
    
    6,322
    
    
    
    1,690
    
    
    
    100
    
    
    
    (142
    )
    
    
    13,336Net operating income
    
    
    12,966
    
    
    
    3,599
    
    
    
    3,166
    
    
    
    1,911
    
    
    
    2,558
    
    
    
    2,248
    
    
    
    920
    
    
    
    114
    
    
    
    27,482Equity in net income of
unconsolidated partnership
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Other income
    
    
    
    
    
    
    411
    
    
    
    95
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    512Interest income
    
    
    26
    
    
    
    37
    
    
    
    10
    
    
    
    3
    
    
    
    11
    
    
    
    11
    
    
    
    1
    
    
    
    708
    
    
    
    807Depreciation and amortization
    
    
    (5,184
    )
    
    
    (1,437
    )
    
    
    (1,869
    )
    
    
    (796
    )
    
    
    (1,639
    )
    
    
    (1,063
    )
    
    
    (176
    )
    
    
    
    
    
    
    (12,164
    )General and administrative
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,756
    )
    
    
    (3,756
    )Interest expense
    
    
    (1,841
    )
    
    
    (248
    )
    
    
    (442
    )
    
    
    (330
    )
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    (4,534
    )
    
    
    (7,422
    )Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    45
    
    
    
    
    
    
    
    (323
    )
    
    
    (278
    )Net income
    
    $
    5,967
    
    
    $
    2,362
    
    
    $
    980
    
    
    $
    788
    
    
    $
    930
    
    
    $
    1,214
    
    
    
    745
    
    
    $
    (7,785
    )
    
    $
    5,201
 New York
    
    
    
    
    
    
    
    
    
    CorporateSan
    
    
    
    
    
    
    
    
    
    and
    
    
    
    
    
    
    
    
    
    andBoston
    
    Francisco
    
    San Diego
    
    Seattle
    
    New Jersey
    
    Pennsylvania
    
    Maryland
    
    Other
    
    Total% of total revenues
    
    
    41.4
    %
    
    
    9.4
    %
    
    
    10.1
    %
    
    
    5.3
    %
    
    
    21.8
    %
    
    
    9.6
    %
    
    
    2.5
    %
    
    
    (0.1
    )%
    
    
    100.0
    %% of total rental operations expenses
    
    
    29.4
    %
    
    
    1.9
    %
    
    
    7.0
    %
    
    
    1.9
    %
    
    
    47.4
    %
    
    
    12.7
    %
    
    
    0.7
    %
    
    
    (1.0
    )%
    
    
    100.0
    %% of total net operating income
    
    
    47.2
    %
    
    
    13.1
    %
    
    
    11.5
    %
    
    
    7.0
    %
    
    
    9.3
    %
    
    
    8.2
    %
    
    
    3.3
    %
    
    
    0.4
    %
    
    
    100.0
    %
 9. Property Acquisitions
  Market
    
    Acquisition Date
    
    Rentable Square FeetFirst QuarterWaples
    
    
    San Diego
    
    
    
    March 1, 2005
    
    
    
    43,036Bridgeview
    
    
    San Francisco
    
    
    
    March 16, 2005
    
    
    
    50,400Graphics Drive
    
    
    New Jersey
    
    
    
    March 17, 2005
    
    
    
    72,300First Quarter Total
    
    
    
    
    
    
    
    
    
    
    165,736Second QuarterFresh Pond Research Park
    
    
    Boston
    
    
    
    April 5, 2005
    
    
    
    90,702Coolidge Avenue
    
    
    Boston
    
    
    
    April 5, 2005
    
    
    
    37,400Phoenixville Pike
    
    
    Pennsylvania
    
    
    
    April 5, 2005
    
    
    
    104,400Nancy Ridge Drive
    
    
    San Diego
    
    
    
    April 21, 2005
    
    
    
    42,138
 12




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##### Table of Contents



Market
    
    Acquisition Date
    
    Rentable Square FeetDumbarton Circle
    
    
    San Francisco
    
    
    
    May 27, 2005
    
    
    
    44,000Lucent Drive
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    21,50021 Erie Street
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    49,247Vassar Street
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    52,520Albany Street
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    75,00340 Erie Street
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    100,854Sidney Street
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    191,904Kendall Square A
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    302,919Kendall Square D
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    349,32547 Erie Street Parking
Structure
    
    
    Boston
    
    
    
    May 31, 2005
    
    
    
    n/aSecond Quarter Total
    
    
    
    
    
    
    
    
    
    
    1,461,912Third QuarterKaiser Drive
    
    
    San Francisco
    
    
    
    August 25, 2005
    
    
    
    87,953Faraday Avenue
    
    
    San Diego
    
    
    
    September 19, 2005
    
    
    
    28,7041000 Uniqema Boulevard
    
    
    Pennsylvania
    
    
    
    September 30, 2005
    
    
    
    59,821Third Quarter Total
    
    
    
    
    
    
    
    
    
    
    176,478Total
    
    
    
    
    
    
    
    
    
    
    1,804,126
 10. Derivative Financial Instruments
      11. Subsequent Events
  13




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##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Overview
    14




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##### Table of Contents



Factors Which May Influence Future Operations
    Critical Accounting Policies
  Share-Based Payment
 Results of Operations
   15




---



##### Table of Contents



Comparison of Three Months Ended September 30, 2005 to Three Months Ended September 30, 2004
  Inhale 201Industrial Road L.P.BioMed Realty Trust, Inc.
    
    
    (Predecessor)Three Months
    
    
    Period August 11,
    
    
    Period July 1, 2004Ended
    
    
    2004 through
    
    
    through
    
    
    CombinedSeptember 30, 2005
    
    
    September 30, 2004
    
    
    August 17, 2004
    
    
    Total
    
    
    ChangeRevenues:Rental
    
    $
    28,593
    
    
    $
    6,107
    
    
    $
    796
    
    
    $
    6,903
    
    
    $
    21,690Tenant recoveries
    
    
    12,225
    
    
    
    2,878
    
    
    
    76
    
    
    
    2,954
    
    
    
    9,271Other income
    
    
    512
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    512Total revenues
    
    
    41,330
    
    
    
    8,985
    
    
    
    872
    
    
    
    9,857
    
    
    
    31,473Expenses:Rental operations
    
    
    9,763
    
    
    
    2,739
    
    
    
    5
    
    
    
    2,744
    
    
    
    7,019Real estate taxes
    
    
    3,573
    
    
    
    800
    
    
    
    41
    
    
    
    841
    
    
    
    2,732Depreciation and amortization
    
    
    12,164
    
    
    
    2,251
    
    
    
    122
    
    
    
    2,373
    
    
    
    9,791General and administrative
    
    
    3,756
    
    
    
    1,195
    
    
    
    
    
    
    
    1,195
    
    
    
    2,561Total expenses
    
    
    29,256
    
    
    
    6,985
    
    
    
    168
    
    
    
    7,153
    
    
    
    22,103Income from operations
    
    
    12,074
    
    
    
    2,000
    
    
    
    704
    
    
    
    2,704
    
    
    
    9,370Equity in net income of
unconsolidated partnership
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Interest income
    
    
    807
    
    
    
    124
    
    
    
    
    
    
    
    124
    
    
    
    683Interest expense
    
    
    (7,422
    )
    
    
    (218
    )
    
    
    (312
    )
    
    
    (530
    )
    
    
    (6,892
    )Income before minority interests
    
    
    5,479
    
    
    
    1,906
    
    
    
    392
    
    
    
    2,298
    
    
    
    3,181Minority interest in consolidated
partnership
    
    
    45
    
    
    
    58
    
    
    
    
    
    
    
    58
    
    
    
    (13
    )Minority interests in operating
partnership
    
    
    (323
    )
    
    
    (137
    )
    
    
    
    
    
    
    (137
    )
    
    
    (186
    )Net income
    
    $
    5,201
    
    
    $
    1,827
    
    
    $
    392
    
    
    $
    2,219
    
    
    $
    2,982
 Rental Revenues
 Tenant Recoveries
 Other Income.
 Rental
Operations Expense
 Real Estate Tax Expense.
 Depreciation and Amortization Expense
 16




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##### Table of Contents



General and Administrative Expenses.
 Interest Income
 Interest Expense.
 Minority Interests.
 Comparison of Nine Months Ended September 30, 2005 to Nine Months Ended September 30, 2004
   Inhale 201Industrial RoadL.P.BioMed Realty Trust, Inc.
    
    
    (Predecessor)Nine Months Ended September 30, 2004PeriodNine Months
    
    
    Period August 11,
    
    
    January 1, 2004Ended
    
    
    2004 through
    
    
    throughSeptember 30, 2005
    
    
    September 30, 2004
    
    
    August 17, 2004
    
    
    Combined Total
    
    
    ChangeRevenues:Rental
    
    $
    62,821
    
    
    $
    6,107
    
    
    $
    3,933
    
    
    $
    10,040
    
    
    $
    52,781Tenant recoveries
    
    
    28,035
    
    
    
    2,878
    
    
    
    375
    
    
    
    3,253
    
    
    
    24,782Other income
    
    
    3,508
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,508Total revenues
    
    
    94,364
    
    
    
    8,985
    
    
    
    4,308
    
    
    
    13,293
    
    
    
    81,071Expenses:Rental operations
    
    
    22,879
    
    
    
    2,739
    
    
    
    131
    
    
    
    2,870
    
    
    
    20,009Real estate taxes
    
    
    7,836
    
    
    
    800
    
    
    
    222
    
    
    
    1,022
    
    
    
    6,814Depreciation and amortization
    
    
    26,832
    
    
    
    2,251
    
    
    
    600
    
    
    
    2,851
    
    
    
    23,981General and administrative
    
    
    9,001
    
    
    
    1,195
    
    
    
    
    
    
    
    1,195
    
    
    
    7,806Total expenses
    
    
    66,548
    
    
    
    6,985
    
    
    
    953
    
    
    
    7,938
    
    
    
    58,610Income from operations
    
    
    27,816
    
    
    
    2,000
    
    
    
    3,355
    
    
    
    5,355
    
    
    
    22,461Equity in net income of
unconsolidated partnership
    
    
    91
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    91Interest income
    
    
    987
    
    
    
    124
    
    
    
    
    
    
    
    124
    
    
    
    863Interest expense
    
    
    (15,645
    )
    
    
    (218
    )
    
    
    (1,700
    )
    
    
    (1,918
    )
    
    
    (13,727
    )Income before minority interests
    
    
    13,249
    
    
    
    1,906
    
    
    
    1,655
    
    
    
    3,561
    
    
    
    9,688Minority interest in consolidated
partnership
    
    
    219
    
    
    
    58
    
    
    
    
    
    
    
    58
    
    
    
    161Minority interests in operating
partnership
    
    
    (991
    )
    
    
    (137
    )
    
    
    
    
    
    
    (137
    )
    
    
    (854
    )Net income
    
    $
    12,477
    
    
    $
    1,827
    
    
    $
    1,655
    
    
    $
    3,482
    
    
    $
    8,995
 17




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##### Table of Contents



Rental Revenues
 Tenant Recoveries
 Other Income.
 Rental Operations Expense
 Real Estate Tax Expense.
 Depreciation and Amortization Expense
 General and Administrative Expenses.
 Interest Income
 Interest Expense.
 18




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##### Table of Contents



Minority Interests.
 Cash Flows
 Comparison of Nine Months Ended September 30, 2005 to Nine Months Ended September 30, 2004
 Nine Months Ended September 30,BioMed RealtyTrust, Inc. andBioMed
    
    Inhale 201Realty Trust,
    
    Industrial Road,Inc.
    
    L.P. (Predecessor)2005
    
    2004
    
    ChangeNet cash provided by operating activities
    
    $
    39,419
    
    
    $
    8,189
    
    
    $
    31,230Net cash used in investing activities
    
    
    (530,398
    )
    
    
    (398,049
    )
    
    
    (132,349
    )Net cash provided by financing activities
    
    
    537,605
    
    
    
    426,566
    
    
    
    111,039Ending cash balance
    
    
    74,495
    
    
    
    36,863
    
    
    
    37,632
    Funds from Operations
  19




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##### Table of Contents



For the Nine
    
    
    For the ThreeMonths Ended
    
    
    Months EndedSeptember 30, 2005
    
    
    September 30, 2005Net income
    
    $
    12,477
    
    
    $
    5,201AdjustmentsOperating partnership unit share in earnings of minority interest
    
    
    991
    
    
    
    323Depreciation and amortization  real estate assets (1)
    
    
    26,862
    
    
    
    12,184Funds from operations
    
    $
    40,330
    
    
    $
    17,708Funds from operations per share  diluted
    
    $
    1.02
    
    
    $
    0.36Weighted-average common shares outstanding  diluted
    
    
    39,545,665
    
    
    
    49,444,409
 
 (1)
    
    Includes our share of joint venture real estate depreciation of $30 and $20 for the nine and
three months ended September 30, 2005, respectively. Liquidity and Capital Resources
  
    
    interest expense and scheduled principal payments on outstanding indebtedness,
    
    general and administrative expenses,
    
    future distributions expected to be paid to our stockholders, and
    
    capital expenditures, tenant improvements and leasing commissions.
    20




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##### Table of Contents



StatedFixed
    
    
    Effective
    
    
    
    
    
    
    Unamortized
    
    
    Carrying
    
    
    CarryingInterest
    
    
    Interest
    
    
    Principal
    
    
    Premium
    
    
    Value at
    
    
    Value atRate
    
    
    Rate
    
    
    Amount
    
    
    Amount
    
    
    September 30, 2005
    
    
    December 31, 2004
    
    
    Maturity DateArdentech Court
    
    
    7.25
    %
    
    
    5.06
    %
    
    $
    4,767
    
    
    $
    552
    
    
    $
    5,319
    
    
    $
    5,440
    
    
    July 1, 2012Bayshore Boulevard
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    16,199
    
    
    
    
    
    
    
    16,199
    
    
    
    16,438
    
    
    January 1, 2010Bridgeview
    
    
    8.07
    %
    
    
    5.04
    %
    
    
    11,759
    
    
    
    1,627
    
    
    
    13,386
    
    
    
    13,681
    
    
    January 1, 2011Eisenhower Road
    
    
    5.80
    %
    
    
    4.63
    %
    
    
    2,218
    
    
    
    61
    
    
    
    2,279
    
    
    
    2,331
    
    
    May 5, 2008Elliott Avenue
    
    
    7.38
    %
    
    
    4.63
    %
    
    
    16,646
    
    
    
    829
    
    
    
    17,475
    
    
    
    18,107
    
    
    November 24, 200740 Erie Street
    
    
    7.34
    %
    
    
    4.90
    %
    
    
    19,810
    
    
    
    1,193
    
    
    
    21,003
    
    
    
    
    
    
    August 1, 2008Kendall Square D
    
    
    6.38
    %
    
    
    5.45
    %
    
    
    72,739
    
    
    
    5,384
    
    
    
    78,123
    
    
    
    
    
    
    December 1, 2018Lucent Drive
    
    
    5.50
    %
    
    
    5.50
    %
    
    
    5,943
    
    
    
    
    
    
    
    5,943
    
    
    
    
    
    
    January 21, 2015Monte Villa Parkway
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    9,861
    
    
    
    
    
    
    
    9,861
    
    
    
    10,007
    
    
    January 1, 2010Nancy Ridge Drive
    
    
    7.15
    %
    
    
    5.57
    %
    
    
    6,971
    
    
    
    725
    
    
    
    7,696
    
    
    
    
    
    
    September 1, 2012Science Center Drive
    
    
    7.65
    %
    
    
    5.04
    %
    
    
    11,610
    
    
    
    1,485
    
    
    
    13,095
    
    
    
    13,376
    
    
    July 1, 2011Sidney Street
    
    
    7.23
    %
    
    
    5.11
    %
    
    
    31,592
    
    
    
    3,510
    
    
    
    35,102
    
    
    
    
    
    
    June 1, 2012Towne Centre Drive
    
    
    4.55
    %
    
    
    4.55
    %
    
    
    22,523
    
    
    
    
    
    
    
    22,523
    
    
    
    22,856
    
    
    January 1, 2010$
    232,638
    
    
    $
    15,366
    
    
    $
    248,004
    
    
    $
    102,236
  21




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##### Table of Contents



2005
    
    $
    1,2362006
    
    
    5,3802007
    
    
    21,2132008
    
    
    24,0762009
    
    
    4,624Thereafter
    
    
    426,109$
    482,638
    Off Balance Sheet Arrangements
 Consolidation of Variable
Interest Entities
 StatedFixed
    
    Effective
    
    
    
    
    
    Unamortized
    
    TotalInterest
    
    Interest
    
    Principal
    
    Premium
    
    BookRate
    
    Rate
    
    Amount
    
    Amount
    
    Value
    
    Maturity DateMcKellar Court
    
    
    8.56
    %
    
    
    4.63
    %
    
    $
    2,260
    
    
    $
    365
    
    
    $
    2,625
    
    
    January 1, 2010
 22




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##### Table of Contents



Cash Distribution Policy
 i.e.
  Inflation
   
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   23




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##### Table of Contents



ITEM 4. CONTROLS AND PROCEDURES
     
 PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  24




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##### Table of Contents



ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
 ExhibitNumber
    
    Description of Exhibit10.1
    
    Sixth Amendment to Lease, dated as of September 23, 2005, by and between BMR-675 West Kendall
Street LLC, as successor to Kendall Square, LLC, and Vertex Pharmaceuticals Incorporated.(1)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.
 
 (1)
    
    Incorporated herein by reference to BioMed Realty Trust Inc.s Current Report on Form 8-K
filed with the Securities and Exchange Commission on September 29, 2005. 25




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##### Table of Contents



SIGNATURES
  BioMed Realty Trust, Inc.Dated: November 14, 2005
    
    /s/ ALAN D. GOLD

Alan D. GoldChairman of the Board, President and ChiefExecutive Officer (Principal Executive Officer)/s/ JOHN F. WILSON, IIJohn F. Wilson, IIChief Financial Officer (Principal Financial Officer)
 26