##### 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, 2006.
 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. Employer Identification No.)incorporation or organization)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, 2006
 TABLE OF CONTENTS
 PagePART I  FINANCIAL INFORMATION
    
    
    3Item 1 Consolidated Financial Statements
    
    
    3Consolidated Balance Sheets for BioMed Realty Trust, Inc. as of March 31, 2006
(Unaudited) and December 31, 2005
    
    
    3Consolidated Statements of Income for BioMed Realty Trust, Inc. for the three months
ended March 31, 2006 and 2005 (Unaudited)
    
    
    4Consolidated Statements of Cash Flows for BioMed Realty Trust, Inc. for the three
months ended March 31, 2006 and 2005 (Unaudited)
    
    
    5Notes to Consolidated Financial Statements (Unaudited)
    
    
    6Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    15Item 3 Quantitative and Qualitative Disclosures About Market Risk
    
    
    20Item 4 Controls and Procedures
    
    
    20PART II  OTHER INFORMATION
    
    
    22Item 1 Legal Proceedings
    
    
    22Item 1A Risk Factors
    
    
    22Item 2 Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    22Item 3 Defaults Upon Senior Securities
    
    
    22Item 4 Submission of Matters to a Vote of Security Holders
    
    
    22Item 5 Other Information
    
    
    22Item 6 Exhibits
    
    
    22SIGNATURES
    
    
    23EXHIBIT 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, 2006
    
    
    December 31, 2005(Unaudited)ASSETSInvestments in real estate, net
    
    $
    1,131,917
    
    
    $
    1,129,371Investment in unconsolidated partnership
    
    
    2,476
    
    
    
    2,483Cash and cash equivalents
    
    
    30,365
    
    
    
    20,312Restricted cash
    
    
    5,844
    
    
    
    5,487Accounts receivable, net
    
    
    5,625
    
    
    
    9,873Accrued straight-line rents, net
    
    
    10,472
    
    
    
    8,731Acquired above market leases, net
    
    
    8,925
    
    
    
    8,817Deferred leasing costs, net
    
    
    130,593
    
    
    
    136,640Deferred loan costs, net
    
    
    4,507
    
    
    
    4,855Prepaid expenses
    
    
    2,840
    
    
    
    2,164Other assets
    
    
    13,333
    
    
    
    8,577Total assets
    
    $
    1,346,897
    
    
    $
    1,337,310LIABILITIES AND STOCKHOLDERS EQUITYMortgage notes payable, net
    
    $
    246,377
    
    
    $
    246,233Secured term loan
    
    
    250,000
    
    
    
    250,000Unsecured line of credit
    
    
    30,700
    
    
    
    17,000Security deposits
    
    
    6,883
    
    
    
    6,905Dividends and distributions payable
    
    
    14,397
    
    
    
    13,365Accounts payable, accrued expenses, and other liabilities
    
    
    24,196
    
    
    
    23,012Acquired below market leases, net
    
    
    28,477
    
    
    
    29,647Total liabilities
    
    
    601,030
    
    
    
    586,162Minority interests
    
    
    20,367
    
    
    
    20,673Stockholders 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, 46,781,632 and 46,634,432 shares issued and
outstanding at March 31, 2006 and December 31, 2005,
respectively
    
    
    466
    
    
    
    466Additional paid-in capital
    
    
    758,375
    
    
    
    757,591Accumulated other comprehensive income
    
    
    9,256
    
    
    
    5,922Dividends in excess of earnings
    
    
    (42,597
    )
    
    
    (33,504
    )Total stockholders equity
    
    
    725,500
    
    
    
    730,475Total liabilities and stockholders equity
    
    $
    1,346,897
    
    
    $
    1,337,310
  3




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##### Table of Contents



BIOMED REALTY TRUST, INC.
 
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per share data)
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedMarch 31, 2006
    
    
    March 31, 2005(Unaudited)Revenues:Rental
    
    $
    31,178
    
    
    $
    14,230Tenant recoveries
    
    
    12,609
    
    
    
    7,254Other income
    
    
    6
    
    
    
    3,021Total revenues
    
    
    43,793
    
    
    
    24,505Expenses:Rental operations
    
    
    9,543
    
    
    
    6,395Real estate taxes
    
    
    4,242
    
    
    
    1,788Depreciation and amortization
    
    
    13,361
    
    
    
    6,191General and administrative
    
    
    4,347
    
    
    
    2,566Total expenses
    
    
    31,493
    
    
    
    16,940Income from operations
    
    
    12,300
    
    
    
    7,565Equity in net income of unconsolidated partnership
    
    
    20
    
    
    
    51Interest income
    
    
    160
    
    
    
    60Interest expense
    
    
    (7,784
    )
    
    
    (1,411
    )Income before minority interests
    
    
    4,696
    
    
    
    6,265Minority interest in consolidated partnerships
    
    
    54
    
    
    
    109Minority interests in operating partnership
    
    
    (276
    )
    
    
    (538
    )Net income
    
    $
    4,474
    
    
    $
    5,836Basic earnings per share
    
    $
    0.10
    
    
    $
    0.19Diluted earnings per share
    
    $
    0.10
    
    
    $
    0.19Weighted-average common shares outstanding:Basic
    
    
    46,369,605
    
    
    
    31,129,613Diluted
    
    
    49,518,010
    
    
    
    34,148,820
  4




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##### Table of Contents



BIOMED REALTY TRUST, INC.
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS
 (In thousands)
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedMarch 31, 2006
    
    
    March 31, 2005(Unaudited)Operating activities:Net income
    
    $
    4,474
    
    
    $
    5,836Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    13,361
    
    
    
    6,191Minority interest in consolidated partnerships
    
    
    (54
    )
    
    
    (109
    )Minority interests in operating partnership
    
    
    276
    
    
    
    538Bad debt expense
    
    
    73
    
    
    
    Revenue reduction attributable to acquired above market leases
    
    
    592
    
    
    
    463Revenue recognized related to acquired below market leases
    
    
    (1,170
    )
    
    
    (310
    )Compensation expense related to restricted common stock
    
    
    784
    
    
    
    707Amortization of loan fees and costs
    
    
    339
    
    
    
    129Amortization of debt premium
    
    
    (605
    )
    
    
    (261
    )Income from unconsolidated partnership
    
    
    (20
    )
    
    
    (51
    )Distributions received from unconsolidated partnership
    
    
    27
    
    
    
    16Changes in operating assets and liabilities:Restricted cash
    
    
    (357
    )
    
    
    (102
    )Accounts receivable
    
    
    4,175
    
    
    
    (3,418
    )Accrued straight-line rents
    
    
    (1,741
    )
    
    
    (918
    )Deferred leasing costs
    
    
    (29
    )
    
    
    (320
    )Prepaid expenses
    
    
    (676
    )
    
    
    (623
    )Other assets
    
    
    (137
    )
    
    
    123Due to affiliates
    
    
    
    
    
    
    (53
    )Security deposits
    
    
    (22
    )
    
    
    388Accounts payable, accrued expenses and other liabilities
    
    
    2,055
    
    
    
    1,168Net cash provided by operating activities
    
    
    21,345
    
    
    
    9,394Investing activities:Purchases of interests in and additions to rental property and related intangible assets
    
    
    (9,692
    )
    
    
    (30,606
    )Minority interest investment in consolidated partnerships
    
    
    302
    
    
    
    565Receipts of master lease payments (reduction to rental property)
    
    
    300
    
    
    
    786Security deposits received from prior owners of rental property
    
    
    
    
    
    
    8Additions to non-real estate assets
    
    
    (334
    )
    
    
    (57
    )Funds held in escrow for acquisitions (other assets)
    
    
    (959
    )
    
    
    (2,225
    )Net cash used in investing activities
    
    
    (10,383
    )
    
    
    (31,529
    )Financing activities:Refund (payment) of loan costs
    
    
    9
    
    
    
    (34
    )Line of credit proceeds
    
    
    13,700
    
    
    
    19,500Principal payments on mortgage notes payable
    
    
    (1,253
    )
    
    
    (381
    )Distributions to operating partnership unit holders
    
    
    (773
    )
    
    
    (775
    )Dividends paid
    
    
    (12,592
    )
    
    
    (8,474
    )Net cash (used in) provided by financing activities
    
    
    (909
    )
    
    
    9,836Net increase (decrease) in cash and cash equivalents
    
    
    10,053
    
    
    
    (12,299
    )Cash and cash equivalents at beginning of period
    
    
    20,312
    
    
    
    27,869Cash and cash equivalents at end of period
    
    $
    30,365
    
    
    $
    15,570Supplemental disclosure of cash flow information:Cash paid during the period for interest (net of amounts capitalized of $236 and $25, respectively)
    
    $
    7,720
    
    
    $
    1,273Supplemental disclosure of non-cash investing and financing activities:Accrual for dividends declared
    
    
    13,567
    
    
    
    8,487Accrual for distributions declared for operating partnership unit holders
    
    
    830
    
    
    
    775Mortgage loans assumed (includes premium of $236 for three months ended March 31, 2006)
    
    
    2,002
    
    
    
    Accrued construction and tenant improvement costs
    
    
    2,629
    
    
    
    741Accrued additions to non-real estate assets
    
    
    116
    
    
    
    28
  5




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##### Table of Contents



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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##### Table of Contents



Investments in Real Estate
  March 31, 2006
    
    
    December 31, 2005Land
    
    $
    149,584
    
    
    $
    146,421Ground lease
    
    
    14,210
    
    
    
    14,210Buildings and improvements
    
    
    965,260
    
    
    
    962,482Construction in progress
    
    
    10,952
    
    
    
    8,582Tenant improvements
    
    
    20,790
    
    
    
    19,5801,160,796
    
    
    
    1,151,275Accumulated depreciation
    
    
    (28,879
    )
    
    
    (21,904
    )$
    1,131,917
    
    
    $
    1,129,371
   March 31,
    
    
    December 31,2006
    
    
    2005Acquired above market leases
    
    $
    11,579
    
    
    $
    10,879Accumulated amortization
    
    
    (2,654
    )
    
    
    (2,062
    )$
    8,925
    
    
    $
    8,817
  March 31,
    
    
    December 31,2006
    
    
    2005Acquired below market leases
    
    $
    33,230
    
    
    $
    33,230Accumulated amortization
    
    
    (4,753
    )
    
    
    (3,583
    )$
    28,477
    
    
    $
    29,647
 Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed
  Deferred Leasing Costs
  7




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##### Table of Contents



Balance at
    
    
    AccumulatedMarch 31, 2006
    
    
    Amortization
    
    
    NetAcquired in-place leases
    
    $
    149,621
    
    
    $
    (28,382
    )
    
    $
    121,239Acquired management agreements
    
    
    10,717
    
    
    
    (3,008
    )
    
    
    7,709Deferred leasing and other direct costs
    
    
    2,055
    
    
    
    (410
    )
    
    
    1,645$
    162,393
    
    
    $
    (31,800
    )
    
    $
    130,593
  Balance at
    
    
    AccumulatedDecember 31, 2005
    
    
    Amortization
    
    
    NetAcquired in-place leases
    
    $
    149,312
    
    
    $
    (22,577
    )
    
    $
    126,735Acquired management agreements
    
    
    10,717
    
    
    
    (2,505
    )
    
    
    8,212Deferred leasing and other direct costs
    
    
    2,026
    
    
    
    (333
    )
    
    
    1,693$
    162,055
    
    
    $
    (25,415
    )
    
    $
    136,640
 Accumulated
Other Comprehensive Income
  Three Months
    
    
    Three MonthsEnded
    
    

EndedMarch 31, 2006
    
    

March 31, 2005Net income
    
    
    4,474
    
    
    
    5,836Unrealized
gain on interest rate swap agreements
    
    
    3,334
    
    
    
    Comprehensive
income
    
    
    7,808
    
    
    
    5,836
 Revenue Recognition
  Incentive Awards
 Share-Based Payment Accounting for Stock-Based Compensation
  Managements Estimates
  Reclassifications
  8




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##### Table of Contents



3. Minority Interests
  4. Mortgage Notes Payable
  StatedFixed
    
    Effective
    

Principal BalanceInterest
    
    Interest
    
    March 31,
    
    
    December 31,Rate
    
    Rate
    
    2006
    
    
    2005
    
    
    Maturity DateArdentech Court
    
    7.25%
    
    5.06%
    
    $
    4,724
    
    
    $
    4,746
    
    
    July 1, 2012Bayshore Boulevard
    
    4.55%
    
    4.55%
    
    
    16,014
    
    
    
    16,107
    
    
    January 1, 2010Bridgeview Technology Park I
    
    8.07%
    
    5.04%
    
    
    11,703
    
    
    
    11,732
    
    
    January 1, 2011Eisenhower Road
    
    5.80%
    
    4.63%
    
    
    2,195
    
    
    
    2,211
    
    
    May 5, 2008Elliott Avenue
    
    7.38%
    
    4.63%
    
    
    16,403
    
    
    
    16,526
    
    
    November 24, 200740 Erie Street
    
    7.34%
    
    4.90%
    
    
    19,416
    
    
    
    19,575
    
    
    August 1, 2008Kendall Square D
    
    6.38%
    
    5.45%
    
    
    72,046
    
    
    
    72,395
    
    
    December 1, 2018Lucent Drive
    
    5.50%
    
    5.50%
    
    
    5,869
    
    
    
    5,899
    
    
    January 21, 2015Monte Villa Parkway
    
    4.55%
    
    4.55%
    
    
    9,749
    
    
    
    9,805
    
    
    January 1, 2010Nancy Ridge Drive
    
    7.15%
    
    5.38%
    
    
    6,931
    
    
    
    6,952
    
    
    September 1, 2012Science Center Drive
    
    7.65%
    
    5.04%
    
    
    11,541
    
    
    
    11,577
    
    
    July 1, 2011Sidney Street
    
    7.23%
    
    5.11%
    
    
    31,258
    
    
    
    31,426
    
    
    June 1, 2012Towne Centre Drive
    
    4.55%
    
    4.55%
    
    
    22,267
    
    
    
    22,396
    
    
    January 1, 2010900 Uniqema Boulevard
    
    8.61%
    
    5.61%
    
    
    1,745
    
    
    
    
    
    
    May 1, 2015231,861
    
    
    
    231,347Unamortized premium
    
    
    
    
    
    
    14,516
    
    
    
    14,886$
    246,377
    
    
    $
    246,233
  5. Credit Facilities
  9




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##### Table of Contents



2006
    
    $
    4,2482007
    
    
    21,3522008
    
    
    54,8372009
    
    
    4,7842010
    
    
    297,186Thereafter
    
    
    130,154$
    512,561
 6. Earnings Per Share
  10




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##### Table of Contents



Earnings per Share
 For the Three
    
    
    For the ThreeMonths Ended
    
    
    Months EndedMarch 31, 2006
    
    
    March 31, 2005Net income attributable to common shares
    
    $
    4,474
    
    
    $
    5,836Minority interests in operating partnership
    
    
    276
    
    
    
    538Adjusted net income attributable to common shares
    
    $
    4,750
    
    
    $
    6,374Weighted-average common shares outstanding:Basic
    
    
    46,369,605
    
    
    
    31,129,613Incremental shares from assumed conversion/exercise:Stock warrant
    
    
    121,234
    
    
    
    75,047Vesting of restricted stock
    
    
    163,607
    
    
    
    73,596Operating partnership units
    
    
    2,863,564
    
    
    
    2,870,564Diluted
    
    
    49,518,010
    
    
    
    34,148,820Earnings per share  basic and diluted
    
    $
    0.10
    
    
    $
    0.19
 7. Incentive Award Plan
    WeightedUnvested
    
    
    Average Grant-Restricted Shares
    
    
    Date Fair ValueUnvested Restricted Stock at January 1, 2006
    
    
    344,492
    
    
    $
    17.70Granted
    
    
    147,200
    
    
    
    27.11Vested
    
    
    (153,194
    )
    
    
    16.53Unvested Restricted Stock at March 31, 2006
    
    
    338,498
    
    
    $
    22.32
 WeightedUnvested
    
    
    Average Grant-Restricted Shares
    
    
    Date Fair ValueUnvested Restricted Stock at January 1, 2005
    
    
    336,333
    
    
    $
    15.03Granted
    
    
    46,225
    
    
    
    20.24Vested
    
    
    (109,440
    )
    
    
    15.03Unvested Restricted Stock at March 31, 2005
    
    
    273,118
    
    
    $
    15.91
 11




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##### Table of Contents



8. Segment Information
     New York
    
    
    
    
    
    
    
    
    
    
    UniversitySan
    
    
    
    
    
    
    
    
    
    
    and
    
    
    
    
    
    
    
    
    
    
    related/Boston
    
    
    Francisco
    
    
    San Diego
    
    
    Seattle
    
    
    New Jersey
    
    
    Pennsylvania
    
    
    Maryland
    
    
    other
    
    
    Corporate
    
    
    TotalRental revenues and tenant
recoveries
    
    $
    17,282
    
    
    $
    4,973
    
    
    $
    4,384
    
    
    $
    2,199
    
    
    $
    7,949
    
    
    $
    5,166
    
    
    $
    1,020
    
    
    $
    819
    
    
    $
    (5
    )
    
    $
    43,787Rental operations and real
estate tax expenses
    
    
    4,161
    
    
    
    710
    
    
    
    988
    
    
    
    300
    
    
    
    5,037
    
    
    
    2,405
    
    
    
    104
    
    
    
    160
    
    
    
    (80
    )
    
    
    13,785Net operating income
    
    
    13,121
    
    
    
    4,263
    
    
    
    3,396
    
    
    
    1,899
    
    
    
    2,912
    
    
    
    2,761
    
    
    
    916
    
    
    
    659
    
    
    
    75
    
    
    
    30,002Equity in net income of
unconsolidated partnership
    
    
    
    
    
    
    
    
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20Other income
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    6Interest income
    
    
    37
    
    
    
    50
    
    
    
    10
    
    
    
    2
    
    
    
    8
    
    
    
    23
    
    
    
    1
    
    
    
    1
    
    
    
    28
    
    
    
    160Depreciation and amortization
    
    
    (5,139
    )
    
    
    (2,180
    )
    
    
    (1,731
    )
    
    
    (798
    )
    
    
    (1,753
    )
    
    
    (1,384
    )
    
    
    (176
    )
    
    
    (200
    )
    
    
    
    
    
    
    (13,361
    )General and administrative
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,345
    )
    
    
    (4,347
    )Interest expense
    
    
    (1,749
    )
    
    
    (285
    )
    
    
    (497
    )
    
    
    (281
    )
    
    
    
    
    
    
    (49
    )
    
    
    
    
    
    
    (81
    )
    
    
    (4,842
    )
    
    
    (7,784
    )Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    54
    
    
    
    
    
    
    
    
    
    
    
    (276
    )
    
    
    (222
    )Net income
    
    $
    6,271
    
    
    $
    1,848
    
    
    $
    1,196
    
    
    $
    822
    
    
    $
    1,167
    
    
    $
    1,405
    
    
    
    741
    
    
    
    379
    
    
    $
    (9,355
    )
    
    $
    4,474Investment in unconsolidated
partnership
    
    
    
    
    
    
    
    
    
    $
    2,476
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,476Total assets
    
    $
    574,409
    
    
    $
    208,993
    
    
    $
    157,110
    
    
    $
    70,803
    
    
    $
    108,009
    
    
    $
    141,970
    
    
    $
    31,858
    
    
    $
    26,384
    
    
    $
    27,361
    
    
    $
    1,346,897
 New YorkSan
    
    
    
    
    
    
    
    
    
    and
    
    
    
    
    
    
    
    
    
    UniversityBoston
    
    Francisco
    
    San Diego
    
    Seattle
    
    New Jersey
    
    Pennsylvania
    
    Maryland
    
    related/other
    
    Corporate
    
    Total% of total revenues
    
    
    39.4
    %
    
    
    11.4
    %
    
    
    10.0
    %
    
    
    5.0
    %
    
    
    18.2
    %
    
    
    11.8
    %
    
    
    2.3
    %
    
    
    1.9
    %
    
    
    0.0
    %
    
    
    100.0
    %% of total rental
operations expenses
    
    
    30.1
    %
    
    
    5.2
    %
    
    
    7.2
    %
    
    
    2.2
    %
    
    
    36.5
    %
    
    
    17.4
    %
    
    
    0.8
    %
    
    
    1.2
    %
    
    
    (0.6
    )%
    
    
    100.0
    %% of total net
operating income
    
    
    43.7
    %
    
    
    14.2
    %
    
    
    11.3
    %
    
    
    6.3
    %
    
    
    9.7
    %
    
    
    9.2
    %
    
    
    3.1
    %
    
    
    2.2
    %
    
    
    0.3
    %
    
    
    100.0
    %
  New YorkSan
    
    
    
    
    
    
    
    
    
    
    andFrancisco
    
    
    San Diego
    
    
    Seattle
    
    
    New Jersey
    
    
    Pennsylvania
    
    
    Maryland
    
    
    Corporate
    
    
    TotalRental revenues and tenant recoveries
    
    $
    3,570
    
    
    $
    3,728
    
    
    $
    2,233
    
    
    $
    7,887
    
    
    $
    3,053
    
    
    $
    1,020
    
    
    $
    (7
    )
    
    $
    21,484Rental operations and real estate tax
expenses
    
    
    603
    
    
    
    789
    
    
    
    325
    
    
    
    5,030
    
    
    
    1,639
    
    
    
    100
    
    
    
    (303
    )
    
    
    8,183Net operating income
    
    
    2,967
    
    
    
    2,939
    
    
    
    1,908
    
    
    
    2,857
    
    
    
    1,414
    
    
    
    920
    
    
    
    296
    
    
    
    13,301Equity in net loss of unconsolidated
partnership
    
    
    
    
    
    
    51
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51Other income
    
    
    3,004
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17
    
    
    
    3,021Interest income
    
    
    8
    
    
    
    2
    
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    48
    
    
    
    60Depreciation and amortization
    
    
    (1,335
    )
    
    
    (1,449
    )
    
    
    (796
    )
    
    
    (1,539
    )
    
    
    (896
    )
    
    
    (176
    )
    
    
    
    
    
    
    (6,191
    )General and administrative
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,566
    )
    
    
    (2,566
    )Interest expense
    
    
    (422
    )
    
    
    (411
    )
    
    
    (336
    )
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    (215
    )
    
    
    (1,411
    )Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    109
    
    
    
    
    
    
    
    (538
    )
    
    
    (429
    )Net income
    
    $
    4,222
    
    
    $
    1,132
    
    
    $
    776
    
    
    $
    1,319
    
    
    $
    601
    
    
    $
    744
    
    
    $
    (2,958
    )
    
    $
    5,836Investment in unconsolidated partnership
    
    
    
    
    
    $
    2,505
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    2,505Total assets
    
    $
    153,670
    
    
    $
    134,239
    
    
    $
    70,700
    
    
    $
    109,558
    
    
    $
    93,088
    
    
    $
    32,409
    
    
    $
    7,950
    
    
    $
    601,614
 12




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##### Table of Contents



New YorkSan
    
    
    
    
    
    
    
    
    
    andFrancisco
    
    San Diego
    
    Seattle
    
    New Jersey
    
    Pennsylvania
    
    Maryland
    
    Corporate
    
    Total% of total revenues.
    
    
    16.6
    %
    
    
    17.3
    %
    
    
    10.4
    %
    
    
    36.7
    %
    
    
    14.2
    %
    
    
    4.8
    %
    
    
    0.0
    %
    
    
    100.0
    %% of total
rental operations
expenses
    
    
    7.4
    %
    
    
    9.6
    %
    
    
    4.0
    %
    
    
    61.5
    %
    
    
    20.0
    %
    
    
    1.2
    %
    
    
    (3.7
    )%
    
    
    100.0
    %% of total net
operating income
    
    
    22.4
    %
    
    
    22.1
    %
    
    
    14.3
    %
    
    
    21.5
    %
    
    
    10.6
    %
    
    
    6.9
    %
    
    
    2.2
    %
    
    
    100.0
    %
 9. Property Acquisitions
  Above
    
    
    Deferred Leasing Costs
    
    
    Below
    
    
    Mortgage
    
    
    Mortgage
    
    
    TotalAcquisition
    
    
    Investment
    
    
    Market
    
    
    In place
    
    
    Management
    
    
    Market
    
    
    Note
    
    
    Note
    
    
    CashProperty
    
    Date
    
    
    in Real Estate
    
    
    Lease
    
    
    Lease
    
    
    Fee
    
    
    Lease
    
    
    Assumed
    
    
    Premium
    
    
    ConsiderationFairview Avenue
    
    
    1/12/2006
    
    
    $
    2,703
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    2,703900 Uniqema Boulevard
    
    
    1/13/2006
    
    
    
    4,106
    
    
    
    700
    
    
    
    310
    
    
    
    
    
    
    
    
    
    
    
    (1,766
    )
    
    
    (236
    )
    
    
    3,114$
    6,809
    
    
    $
    700
    
    
    $
    310
    
    
    $
    
    
    
    $
    
    
    
    $
    (1,766
    )
    
    $
    (236
    )
    
    $
    5,817Weighted average intangible
amortization life (in months)
    
    
    
    
    
    
    
    
    
    
    107
    
    
    
    107
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    109
    
    
    
    
 10. Derivative Financial Instruments
      13




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##### Table of Contents



11. Subsequent Events
   14




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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
  15




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##### Table of Contents



Critical Accounting Policies
  Share-Based Payment Accounting for Stock-Based Compensation
  Results of Operations
 Comparison of Three Months Ended March 31, 2006 to Three Months Ended March 31, 2005
 Rental Revenues
 Tenant Recoveries
 Other Income.
 Rental Operations Expense
 Real Estate Tax Expense.
 16




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##### Table of Contents



Depreciation and Amortization Expense
 General and Administrative Expenses.
 Interest Income
 Interest Expense.
 Minority Interest in Consolidated Partnerships.
 Minority Interests in Operating Partnership.
 Cash Flows
 Comparison of Three Months Ended March 31, 2006 to Three Months Ended March 31, 2005
 Three Months Ended March 31,2006
    
    
    2005
    
    
    Change(in thousands)Net cash provided by operating activities
    
    $
    21,345
    
    
    $
    9,394
    
    
    $
    11,951Net cash used in investing activities
    
    
    (10,383
    )
    
    
    (31,529
    )
    
    
    21,146Net cash (used in) provided by financing activities
    
    
    (909
    )
    
    
    9,836
    
    
    
    (10,745
    )Ending cash balance
    
    
    30,365
    
    
    
    15,570
    
    
    
    14,795
     17




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##### Table of Contents



Funds from Operations
   For the Three
    
    
    For the ThreeMonths Ended
    
    
    Months EndedMarch 31, 2006
    
    
    March 31, 2005Net income
    
    $
    4,474
    
    
    $
    5,836AdjustmentsMinority interests in operating partnership
    
    
    276
    
    
    
    538Depreciation and amortization  real estate assets
    
    
    13,381
    
    
    
    6,180Funds from operations
    
    $
    18,131
    
    
    $
    12,554Funds from operations per share  diluted
    
    $
    0.37
    
    
    $
    0.37Weighted-average common shares outstanding  diluted
    
    
    49,518,010
    
    
    
    34,148,820
 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.
   18




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##### Table of Contents



Off Balance Sheet Arrangements
   Cash Distribution Policy
 i.e.
  19




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##### Table of Contents



Inflation
   
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
     
 ITEM 4. CONTROLS AND PROCEDURES
  20




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21




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##### Table of Contents



PART II  OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 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
    
    First Amendment to Employment Agreement between BioMed Realty Trust, Inc. and John F. Wilson, II
dated as of March 27, 2006.(1)10.2
    
    Employment Agreement between BioMed Realty Trust, Inc. and R. Kent Griffin dated as of March 27,
2006.(1)10.3
    
    First Amendment to Employment Agreement between BioMed Realty Trust, Inc. and Matthew G. McDevitt
dated as of February 27, 2006.(2)10.4
    
    Third Amendment to the BioMed Realty 401(k) Retirement Savings Plan.(2)10.5
    
    Seventh Amendment to Lease, dated as of January 23, 2006, by and between BMR-675 West Kendall
Street LLC, as successor to Kendall Square, LLC, and Vertex Pharmaceuticals Incorporated.(2)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 March 15, 2006.(2)
    
    Incorporated herein by reference to BioMed Realty Trust Inc.s Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 15, 2006. 22




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SIGNATURES
  BioMed Realty Trust, Inc.Dated: May 5, 2006
    /s/ ALAN D. GOLDAlan D. GoldChairman of the Board, President and
Chief 
Executive
Officer
(Principal Executive Officer)/s/ R. KENT GRIFFIN, JR.R. Kent Griffin, Jr.Chief Financial Officer
(Principal Financial Officer) 23