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UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


ANNUAL REPORT


PURSUANT TO SECTION 13 OR 15(d)


OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2004


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
    incorporation or organization)                                       |  | (I.R.S. Employer Identification No.)
|                                                                                                        
|17140 Bernardo Center Drive, Suite 222
    San Diego, California(Address of Principal Executive Offices) |  | 92128(Zip Code)                     

(858) 485-9840


(Registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


|                              |  |                                          
|----------------------------- |  | -----------------------------------------
|Title of Each Class           |  | Name of Each Exchange on Which Registered
|                              |  |                                          
|Common Stock, $0.01 Par Value |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act: None


þ o


þ


o þ






DOCUMENTS INCORPORATED BY REFERENCE












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BIOMED REALTY TRUST, INC.


FORM 10-K  ANNUAL REPORT


FOR THE YEAR ENDED DECEMBER 31, 2004


TABLE OF CONTENTS


|             |  |                                                                                                                  |  |      |    |  |  | 
|------------ |  | ---------------------------------------------------------------------------------------------------------------- |  | ---- | -- |  |  | 
|             |  |                                                                                                                  |  | Page |   
|             |  |                                                                                                                  |  |      |   
|             |  |                                                                                                                  |  |      |    |  |  | 
|PART I      
|Item 1       |  | Business                                                                                                         |  |      | 1  | 
|Item 2       |  | Properties                                                                                                       |  |      | 25 | 
|Item 3       |  | Legal Proceedings                                                                                                |  |      | 28 | 
|Item 4       |  | Submission of Matters to a Vote of Security Holders                                                              |  |      | 28 | 
|            
|             |  |                                                                                                                  |  |      |    |  |  | 
|PART II     
|Item 5       |  | Market for Registrants Common Equity, Related Stockholder
    Matters and Issuer Purchases of Equity Securities |  |      | 29 | 
|Item 6       |  | Selected Financial Data                                                                                          |  |      | 29 | 
|Item 7       |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                        |  |      | 31 | 
|Item 7A      |  | Quantitative and Qualitative Disclosures About Market Risk                                                       |  |      | 43 | 
|Item 8       |  | Financial Statements and Supplementary Data                                                                      |  |      | 45 | 
|Item 9       |  | Changes in and Disagreements with Accountants on Accounting and
    Financial Disclosure                         |  |      | 70 | 
|Item 9A      |  | Controls and Procedures                                                                                          |  |      | 70 | 
|Item 9B      |  | Other Information                                                                                                |  |      | 70 | 
|            
|             |  |                                                                                                                  |  |      |    |  |  | 
|PART III    
|Item 10      |  | Directors and Executive Officers of the Registrant                                                               |  |      | 70 | 
|Item 11      |  | Executive Compensation                                                                                           |  |      | 71 | 
|Item 12      |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters               |  |      | 71 | 
|Item 13      |  | Certain Relationships and Related Transactions                                                                   |  |      | 71 | 
|Item 14      |  | Principal Accountant Fees and Services                                                                           |  |      | 71 | 
|            
|             |  |                                                                                                                  |  |      |    |  |  | 
|PART IV     
|Item 15      |  | Exhibits and Financial Statement Schedules                                                                       |  |      | 72 | 
|EXHIBIT 21.1
|EXHIBIT 23.1
|EXHIBIT 31.1
|EXHIBIT 31.2
|EXHIBIT 32.1





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PART I







|        |         
|------- | --------
|Item 1. | Business

General


















1



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2004 Highlights Since Our Initial Public Offering












Subsequent Events










2



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Growth Strategy








| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | access to cost-effective capital, enabling us to finance tenant
    improvements and lease available space to high quality,
    long-term tenants,               
|
| |  | predictable and consistent earnings growth through annual
    contractual rent increases,                                                                        
|
| |  | close monitoring of our existing tenants to address
    opportunities to renew, extend or modify existing leases and
    find additional expansion opportunities,
|
| |  | continual evaluation of redevelopment opportunities to convert
    existing office and industrial space into laboratory
    space, and                           
|
| |  | an ability to leverage tenant-financed improvements to encourage
    tenant renewals or to substantially increase rental rates at the
    end of the lease.      





| |   |                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an ability to capitalize on managements extensive
    acquisition expertise and extensive industry relationships among
    life science tenants, property owners and real estate brokers,
|
| |  | a focus on acquiring properties leased to high quality life
    science tenants at attractive yields with potential upside
    through lease-up, redevelopment or additional development, 
|
| |  | the selective development of life science space in target market
    locations, and                                                                                                       
|
| |  | an emphasis on location of potential acquisitions in relation to
    academic and research institutions to support long-term value.                                                       

Target Markets




Positive Life Science Trends






| |   |                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the aging of the U.S. population resulting from the
    transition of baby boomers to senior citizens, which has
    increased the demand for new drugs and services,                                                                                                                                                                                       
|
| |  | the existing high level of and continuing increase in research
    and development expenditures, as represented by a recent survey
    by the Pharmaceutical Research and Manufacturers of America
    (PhRMA) indicating that research and development spending
    climbed to a record $38.8 billion in 2004 from
    $34.5 billion in the prior year, and
|
| |  | escalating health care costs, which drive the demand for better
    drugs, less expensive treatments and more services in an attempt
    to manage such costs.                                                                                                                                                                                              



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Experienced Management




Regulation




| |        
| | -------
| | General





| |                                
| | -------------------------------
| | Americans with Disabilities Act





| |                      
| | ---------------------
| | Environmental Matters





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Insurance




5



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Competition






| |   |                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our expertise in understanding the real estate needs of life
    science industry tenants;                                                                           
|
| |  | our ability to identify and acquire those properties with
    generic laboratory infrastructure that appeal to a wide range of
    life science industry tenants; and
|
| |  | our expertise in identifying and evaluating life science
    industry tenants.                                                                                       



Foreign Operations




Segment Financial Information




6



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Risk Factors




| |                                                                          
| | -------------------------------------------------------------------------
| | Risks Related to Our Properties, Our Business and Our
    Growth Strategy

Because we lease our properties to a limited number of
tenants, and to the extent we depend on a limited number of
tenants in the future, the inability of any single tenant to
make its lease payments could adversely affect our business and
our ability to make distributions to our stockholders.




Tenants in the life science industry face high levels of
regulation, expense and uncertainty that may adversely affect
their ability to pay us rent and consequently adversely affect
our business.






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our tenants require significant outlays of funds for the
    research and development and clinical testing of their products
    and technologies. If private investors, the government or other
    sources of funding are unavailable to support such development,
    a tenants business may fail.                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | The research and development, clinical testing, manufacture and
    marketing of some of our tenants products require federal,
    state and foreign regulatory approvals. The approval process is
    typically long, expensive and uncertain. Even if our tenants
    have sufficient funds to seek approvals, one or all of their
    products may fail to obtain the required regulatory approvals on
    a timely basis or at all. Furthermore, our tenants may only have
    a small number of products under development. If one product
    fails to receive the required approvals at any stage of
    development, it could significantly adversely affect our
    tenants entire business and its ability to pay rent.
|
| |  | Our tenants with marketable products may be adversely affected
    by health care reform efforts and the reimbursement policies of
    government or private health care payors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Our tenants may be unable to adequately protect their
    intellectual property under patent, copyright or trade secret
    laws. Failure to do so could jeopardize their ability to profit
    from their efforts and to protect their products from
    competition.                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Collaborative relationships with other life science entities may
    be crucial to the development, manufacturing, distribution or
    marketing of our tenants products. If these other entities
    fail to fulfill their obligations under these collaborative
    arrangements, our tenants businesses will suffer.                                                                                                                                                                                                                                                                                                                                                                                                          



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Because particular upgrades are required for life science
tenants, improvements to our properties involve greater
expenditures than traditional office space, which costs may not
be covered by the rents our tenants pay.






| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | reinforced concrete floors,                                                
|
| |  | upgraded roof structures for greater load capacity,                        
|
| |  | increased floor-to-ceiling clear heights,                                  
|
| |  | heavy-duty HVAC systems,                                                   
|
| |  | enhanced environmental control technology,                                 
|
| |  | significantly upgraded electrical, gas and plumbing
    infrastructure, and
|
| |  | laboratory benchwork.                                                      



Because of the unique and specific improvements required for
our life science tenants, we may be required to incur
substantial renovation costs to make our properties suitable for
other life science tenants or other office tenants, which could
adversely affect our operating performance.






The geographic concentration of our properties in California
makes our business particularly vulnerable to adverse conditions
affecting this market.




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Our tax indemnification and debt maintenance obligations
require us to make payments if we sell certain properties or
repay certain debt, which could limit our operating
flexibility.






We have limited operating history as a REIT and as a public
company and may not be successful in operating as a public REIT,
which may adversely affect our ability to make distributions to
stockholders.




Our expansion strategy may not yield the returns expected,
may result in disruptions to our business, may strain our
management resources and may adversely affect our operations.




9



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We may be unable to acquire, develop or operate new
properties successfully, which could harm our financial
condition and ability to pay distributions to our
stockholders.






| |   |                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | changing market conditions, including competition from others,
    may diminish our opportunities for acquiring a desired property
    on favorable terms or at all. Even if we enter into agreements
    for the acquisition of properties, these agreements are subject
    to customary conditions to closing, including completion of due
    diligence investigations to our satisfaction,
|
| |  | we may be unable to obtain financing on favorable terms (or at
    all),                                                                                                                                                                                                                                                                                                                       
|
| |  | we may spend more time or money than we budget to improve or
    renovate acquired properties or to develop new properties,                                                                                                                                                                                                                                                                    
|
| |  | we may be unable to quickly and efficiently integrate new
    properties, particularly if we acquire portfolios of properties,
    into our existing operations,                                                                                                                                                                                                                               
|
| |  | market conditions may result in higher than expected vacancy
    rates and lower than expected rental rates,                                                                                                                                                                                                                                                                                   
|
| |  | if we develop properties, we may encounter delays or refusals in
    obtaining all necessary zoning, land use, building, occupancy
    and other required governmental permits and authorizations,                                                                                                                                                                                             
|
| |  | we are less familiar with the development of properties in
    markets outside of California,                                                                                                                                                                                                                                                                                                  
|
| |  | acquired and developed properties may have defects we do not
    discover through our inspection processes, including latent
    defects that may not reveal themselves until many years after we
    put a property in service, and                                                                                                                                                           
|
| |  | we may acquire land, properties or entities owning properties
    which are subject to liabilities and for which, in the case of
    unknown liabilities, we may have limited or no recourse.                                                                                                                                                                                                  



Our success depends on key personnel with extensive
experience dealing with the real estate needs of life science
tenants, and the loss of these key personnel could threaten our
ability to operate our business successfully.




10



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The bankruptcy of a tenant may adversely affect the income
produced by and the value of our properties.




Compliance with changing regulation of corporate governance
and public disclosure may result in additional expenses.




Future acts of terrorism or war or the risk of war may have a
negative impact on our business.




11



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| |                                          
| | -----------------------------------------
| | Risks Related to the Real Estate Industry

Significant competition may decrease or prevent increases in
our properties occupancy and rental rates and may reduce
our investment opportunities.




Uninsured and underinsured losses could adversely affect our
operating results and our ability to make distributions to our
stockholders.






Our performance and value are subject to risks associated
with the ownership and operation of real estate assets and with
factors affecting the real estate industry.




12



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| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | local oversupply, increased competition or reduced demand for
    life science office and laboratory space,                                             
|
| |  | inability to collect rent from tenants,                                                                                                                 
|
| |  | vacancies or our inability to rent space on favorable terms,                                                                                            
|
| |  | increased operating costs, including insurance premiums,
    utilities and real estate taxes,                                                           
|
| |  | the ongoing need for capital improvements, particularly in older
    structures,                                                                        
|
| |  | costs of complying with changes in governmental regulations,
    including tax laws,                                                                    
|
| |  | the relative illiquidity of real estate investments,                                                                                                    
|
| |  | changing submarket demographics, and                                                                                                                    
|
| |  | civil unrest, acts of war and natural disasters, including
    earthquakes, floods and fires, which may result in uninsured and
    underinsured losses.





| |   |                                                          
| | - | ---------------------------------------------------------
| |  | periods of economic slowdown or recession,               
|
| |  | rising interest rates,                                   
|
| |  | declining demand for real estate, or                     
|
| |  | the public perception that any of these events may occur.



Illiquidity of real estate investments may make it difficult
for us to sell properties in response to market conditions and
could harm our financial condition and ability to make
distributions.




We may be unable to renew leases, lease vacant space or
re-lease space as leases expire, which could adversely affect
our business and our ability to pay distributions to our
stockholders.




13



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We could incur significant costs related to government
regulation and private litigation over environmental matters
involving the presence, discharge or threat of discharge of
hazardous or toxic substances, which could adversely affect our
operations, the value of our properties, and our ability to make
distributions to our stockholders.






| |   |                                             
| | - | --------------------------------------------
| |  | our knowledge of the contamination,         
|
| |  | the timing of the contamination,            
|
| |  | the cause of the contamination, or          
|
| |  | the party responsible for the contamination.









| |   |                                                                          
| | - | -------------------------------------------------------------------------
| |  | may require the removal or upgrade of underground storage tanks,         
|
| |  | regulate storm water, wastewater and water pollutant discharge,          
|
| |  | regulate air pollutant emissions,                                        
|
| |  | regulate hazardous materials generation, management and
    disposal, and
|
| |  | regulate workplace health and safety.                                    



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We could incur significant costs related to governmental
regulation and private litigation over environmental matters
involving asbestos-containing materials, which could adversely
affect our operations, the value of our properties, and our
ability to make distributions to our stockholders.




Our properties may contain or develop harmful mold, which
could lead to liability for adverse health effects and costs of
remediating the problem, which could adversely affect the value
of the affected property and our ability to make distributions
to our stockholders.




Compliance with the Americans with Disabilities Act and
similar laws may require us to make significant unanticipated
expenditures.




We may incur significant unexpected costs to comply with
fire, safety and other regulations, which could adversely impact
our financial condition, results of operations, and ability to
make distributions.




15



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| |                                              
| | ---------------------------------------------
| | Risks Related to Our Organizational Structure

Conflicts of interest could result in our management acting
other than in our stockholders best interests.


Our Chairman, President and Chief Executive Officer
beneficially owns 4.2% of our common stock on a fully diluted
basis and exercises substantial influence over our business and,
as a result, he may delay, defer or prevent us from taking
actions that would be beneficial to our other stockholders.


We may choose not to enforce, or to enforce less vigorously,
our rights under contribution and other agreements because of
conflicts of interest with certain of our officers.


Our charter and Maryland law contain provisions that may
delay, defer or prevent a change of control transaction and may
prevent stockholders from receiving a premium for their
shares.


Our charter contains a 9.8% ownership limit that may delay,
defer or prevent a change of control transaction.


We could authorize and issue stock without stockholder
approval that may delay, defer or prevent a change of control
transaction.


Certain provisions of Maryland law could inhibit changes in
control that may delay, defer or prevent a change of control
transaction.


16



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | business combination provisions that, subject to
    limitations, prohibit certain business combinations between us
    and an interested stockholder for certain periods.
    An interested stockholder is generally any person
    who beneficially owns 10% or more of the voting power of our
    shares or an affiliate thereof. The business combinations are
    prohibited for five years after the most recent date on which
    the stockholder becomes an interested stockholder. After that
    period, the MGCL imposes special appraisal rights and special
    stockholder voting requirements on such combinations, and
|
| |  | control share provisions that provide that
    control shares of our company acquired in a
    control share acquisition have no voting rights
    unless holders of two-thirds of our voting stock (excluding
    interested shares) consent. Control shares are
    shares that, when aggregated with other shares controlled by the
    stockholder, entitle the stockholder to exercise one of three
    increasing ranges of voting power in electing directors. A
    control share acquisition is the direct or indirect
    acquisition of ownership or control of control
    shares.                                   





Our board of directors may amend our investing and financing
policies without stockholder approval, and, accordingly, our
stockholders would have limited control over changes in our
policies that could increase the risk we default under our debt
obligations or that could harm our business, results of
operations and share price.




We may invest in properties with other entities, and our lack
of sole decision-making authority or reliance on a
co-venturers financial condition could make these joint
venture investments risky.




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| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | might become bankrupt or fail to fund their share of required
    capital contributions,                                  
|
| |  | may have economic or other business interests or goals that are
    inconsistent with our business interests or goals, and
|
| |  | may be in a position to take actions contrary to our policies or
    objectives.                                          





| |   |                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we structure a joint venture or conduct business in a manner
    that is deemed to be a general partnership with a third party,
    in which case we could be liable for the acts of that third
    party,                                                                                                         
|
| |  | third-party managers incur debt or other liabilities on behalf
    of a joint venture which the joint venture is unable to pay, and
    the joint venture agreement provides for capital calls, in which
    case we could be liable to make contributions as set forth in
    any such joint venture agreement, or
|
| |  | we agree to cross-default provisions or to cross-collateralize
    our properties with the properties in a joint venture, in which
    case we could face liability if there is a default relating to
    those properties in the joint venture or the obligations
    relating to those properties.               



| |                                       
| | --------------------------------------
| | Risks Related to Our Capital Structure

Debt obligations expose us to increased risk of property
losses and may have adverse consequences on our business
operations and our ability to make distributions.






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Required payments of principal and interest may be greater than
    our cash flow from operations.                                                                                                                                                                                                                                                                                                                                                 
|
| |  | We may be forced to dispose of one or more of our properties,
    possibly on disadvantageous terms, to make payments on our debt.                                                                                                                                                                                                                                                                                                                 
|
| |  | If we default on our debt obligations, the lenders or mortgagees
    may foreclose on our properties that secure those loans.
    Further, if we default under a mortgage loan, we will
    automatically be in default on any other loan that has
    cross-default provisions, and we may lose the properties
    securing all of these loans.                                                                                                   
|
| |  | A foreclosure on one of our properties will be treated as a sale
    of the property for a purchase price equal to the outstanding
    balance of the secured debt. If the outstanding balance of the
    secured debt exceeds our tax basis in the property, we would
    recognize taxable income on foreclosure without realizing any
    accompanying cash proceeds to pay the tax (or to make
    distributions based on REIT taxable income).
|
| |  | We may not be able to refinance or extend our existing debt. If
    we cannot repay, refinance or extend our debt at maturity, in
    addition to our failure to repay our debt, we may be unable to
    make distributions to our stockholders at expected levels or at
    all.                                                                                                                                                                  
|
| |  | Even if we are able to refinance or extend our existing debt,
    the terms of any refinancing or extension may not be as
    favorable as the terms of our existing debt. If the refinancing
    involves a higher interest rate, it could adversely affect our
    cash flow and ability to make distributions to stockholders.                                                                                                                  



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Our credit facility includes restrictive covenants relating
to our operations, which could limit our ability to respond to
changing market conditions and our ability to make distributions
to our stockholders.




We may engage in hedging transactions, which can limit our
gains and increase exposure to losses.






| |   |                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Available interest rate hedging may not correspond directly with
    the interest rate risk for which we seek protection.                                                                                                                                 
|
| |  | The duration of the hedge may not match the duration of the
    related liability.                                                                                                                                                                        
|
| |  | The party owing money in the hedging transaction may default on
    its obligation to pay.                                                                                                                                                                
|
| |  | The credit quality of the party owing money on the hedge may be
    downgraded to such an extent that it impairs our ability to sell
    or assign our side of the hedging transaction.                                                                   
|
| |  | The value of derivatives used for hedging may be adjusted from
    time to time in accordance with accounting rules to reflect
    changes in fair value. Downward adjustments, or
    mark-to-market losses, would reduce our
    stockholders equity.



Increases in interest rates could increase the amount of our
debt payments and adversely affect our ability to pay
distributions to our stockholders.




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If we fail to successfully obtain external sources of
capital, which is outside of our control, we may be unable to
make distributions to our stockholders, maintain our REIT
qualification, or fund growth.






| |   |                                                 
| | - | ------------------------------------------------
| |  | general market conditions,                      
|
| |  | the markets perception of our growth potential,
|
| |  | our current debt levels,                        
|
| |  | our current and expected future earnings,       
|
| |  | our cash flow and cash distributions, and       
|
| |  | the market price per share of our common stock. 





| |                                 
| | --------------------------------
| | Risks Related to Our REIT Status

Our failure to qualify as a REIT under the Code would result
in significant adverse tax consequences to us and would
adversely affect our business and the value of our stock.








| |   |                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we would not be allowed to deduct distributions to stockholders
    in computing our taxable income and would be subject to federal
    income tax at regular corporate rates,

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| |   |                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we could also be subject to the federal alternative minimum tax
    and possibly increased state and local taxes, and                                                                            
|
| |  | unless we are entitled to relief under applicable statutory
    provisions, we could not elect to be taxed as a REIT for four
    taxable years following the year in which we were disqualified.



Even if we qualify as a REIT for federal income tax purposes,
we may be subject to other tax liabilities that reduce our cash
flow.






| |   |                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In order to qualify as a REIT, we must distribute annually at
    least 90% of our REIT taxable income to our stockholders. To the
    extent that we satisfy this distribution requirement, but
    distribute less than 100% of our REIT taxable income, we will be
    subject to federal corporate income tax on the undistributed
    amount.
|
| |  | We will be subject to a 4% nondeductible excise tax on the
    amount, if any, by which distributions we pay in any calendar
    year are less than the sum of 85% of our ordinary income, 95% of
    our capital gain net income and 100% of our undistributed income
    from prior years.                                                      
|
| |  | If we have net income from the sale or other disposition of
    foreclosure property that we hold primarily for sale
    to customers in the ordinary course of business or other
    non-qualifying income from foreclosure property, we must pay tax
    on that income at the highest corporate rate.                                        
|
| |  | If we sell a property in a prohibited transaction,
    our gain from the sale would be subject to a 100% penalty tax. A
    prohibited transaction is, in general, a sale or
    other disposition of property, other than foreclosure property,
    held primarily for sale to customers in the ordinary course of
    business.             

To maintain our REIT status, we may be forced to borrow funds
during unfavorable market conditions to make distributions to
our stockholders.






| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | differences in timing between the actual receipt of cash and
    inclusion of income for federal income tax purposes,
|
| |  | the effect of non-deductible capital expenditures,                                                                   
|
| |  | the creation of reserves, or                                                                                         
|
| |  | required debt or amortization payments.                                                                              



To maintain our REIT status, we may be forced to forego
otherwise attractive opportunities.




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The ownership limitations in our charter may restrict or
prevent stockholders from engaging in certain transfers of our
stock.






| |                                            
| | -------------------------------------------
| | Risks Related to the Ownership of Our Stock

The market price and trading volume of our common stock may
be volatile.








| |   |                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------
| |  | actual or anticipated variations in our quarterly operating
    results or dividends,              
|
| |  | changes in our funds from operations or earnings estimates,                                        
|
| |  | publication of research reports about us or the real estate
    industry,                          
|
| |  | increases in market interest rates that lead purchasers of our
    shares to demand a higher yield,
|
| |  | changes in market valuations of similar companies,                                                 
|
| |  | adverse market reaction to any additional debt we incur in the
    future,                         
|
| |  | additions or departures of key management personnel,                                               
|
| |  | actions by institutional stockholders,                                                             
|
| |  | speculation in the press or investment community,                                                  

22



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| |   |                                                                                   
| | - | ----------------------------------------------------------------------------------
| |  | the realization of any of the other risk factors presented in
    this report, and
|
| |  | general market and economic conditions.                                           

An increase in market interest rates may have an adverse
effect on the market price of our securities.




Broad market fluctuations could negatively impact the market
price of our common stock.




Our distributions to stockholders may decline at any time.






| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | cash available for distribution,                                                            
|
| |  | operating results,                                                                          
|
| |  | our financial condition, especially in relation to our
    anticipated future capital needs,
|
| |  | then current expansion plans,                                                               
|
| |  | the distribution requirements for REITs under the Code, and                                 
|
| |  | other factors our board deems relevant.                                                     

The number of shares of our common stock available for future
sale could adversely affect the market price of our common
stock.








| |   |                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |  | the exchange of units for common stock,                                                                                                 
|
| |  | the exercise of any options granted to certain directors,
    executive officers and other employees under our incentive award
    plan,
|
| |  | issuances of preferred stock with liquidation or distribution
    preferences, and                                                      
|
| |  | other issuances of our common stock.                                                                                                    

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Forward-Looking Statements






| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | adverse economic or real estate developments in the life science
    industry or the California region,              
|
| |  | general economic conditions,                                                                                         
|
| |  | our ability to compete effectively,                                                                                  
|
| |  | defaults on or non-renewal of leases by tenants,                                                                     
|
| |  | increased interest rates and operating costs,                                                                        
|
| |  | our failure to obtain necessary outside financing,                                                                   
|
| |  | our ability to successfully complete real estate acquisitions,
    developments and dispositions,                    
|
| |  | our failure to successfully operate acquired properties,                                                             
|
| |  | our failure to maintain our status as a REIT,                                                                        
|
| |  | government approvals, actions and initiatives, including the
    need for compliance with environmental requirements,

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| |   |                                                                                     
| | - | ------------------------------------------------------------------------------------
| |  | financial market fluctuations, and                                                  
|
| |  | changes in real estate and zoning laws and increases in real
    property tax rates.








|        |           
|------- | ----------
|Item 2. | Properties

Existing Portfolio






|                        |  |            |    |  |          |         |           |          |  |  |             |                |  |         |    |         |             |  |         |            |  |            |                    |  |  |  |       |   |  |   |       | 
|----------------------- |  | ---------- | -- |  | -------- | ------- | --------- | -------- |  |  | ----------- | -------------- |  | ------- | -- | ------- | ----------- |  | ------- | ---------- |  | ---------- | ------------------ |  |  |  | ----- | - |  | - | ----- | 
|                        |  |            |    |  |          | Percent |           |          |  |  |             |                |  |         |    |         |            
|                        |  |            |    |  |          | of      |           |          |  |  |             |                |  |         |    |         |            
|                        |  | Number     |    |  | Rentable |         |           | Rentable |  |  | Approximate |                |  |         |    | Current |             |  | Percent |            |  | Annualized |                   
|                        |  | of         |    |  | Square   |         |           | Square   |  |  | Percentage  |                |  | Percent |    |         | Annualized  |  |         | Annualized |  |            | Revenue per Leased | 
|Market                  |  | Properties |    |  | Feet     |         |           | Feet     |  |  | Lab Space   |                |  | Leased  |    |         | Revenues(1) |  |         | Revenues   |  |            | Square Foot        | 
|                        |  |            |    |  |          |         |           |          |  |  |             |                |  |         |    |         |             |  |         |            |  |            |                    | 
|                        |  |            |    |  |          |         |           |          |  |  |             | (In thousands) |  |         |    |         |            
|San Francisco           |  |            | 4  |  |          |         | 623,570   |          |  |  | 23.7        | %              |  |         | 50 | %       |             |  | 88.8    | %          |  | $          | 12,889             |  |  |  | 21.7  | % |  | $ | 23.28 | 
|San Diego(2)            |  |            | 6  |  |          |         | 444,467   |          |  |  | 16.9        | %              |  |         | 50 | %       |             |  | 96.4    | %          |  |            | 13,257             |  |  |  | 22.3  | % |  |   | 30.94 | 
|Seattle                 |  |            | 2  |  |          |         | 185,989   |          |  |  | 7.1         | %              |  |         | 60 | %       |             |  | 100.0   | %          |  |            | 6,249              |  |  |  | 10.5  | % |  |   | 33.60 | 
|New York/ New Jersey    |  |            | 1  |  |          |         | 751,648   |          |  |  | 28.6        | %              |  |         | 65 | %       |             |  | 94.9    | %          |  |            | 14,902             |  |  |  | 25.1  | % |  |   | 20.89 | 
|Pennsylvania            |  |            | 2  |  |          |         | 454,859   |          |  |  | 17.3        | %              |  |         | 50 | %       |             |  | 100.0   | %          |  |            | 9,498              |  |  |  | 16.0  | % |  |   | 20.88 | 
|Maryland                |  |            | 2  |  |          |         | 168,817   |          |  |  | 6.4         | %              |  |         | 70 | %       |             |  | 100.0   | %          |  |            | 2,625              |  |  |  | 4.4   | % |  |   | 15.55 | 
|                        |  |            |    |  |          |         |           |          |  |  |             |                |  |         |    |         |             |  |         |            |  |            |                    | 
|Total/ Weighted Average |  |            | 17 |  |          |         | 2,629,350 |          |  |  | 100.0       | %              |  |         |    |         |             |  | 95.3    | %          |  | $          | 59,420             |  |  |  | 100.0 | % |  | $ | 23.72 | 
|                        |  |            |    |  |          |         |           |          |  |  |             |                |  |         |    |         |             |  |         |            |  |            |                    | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In this and other tables, current annualized revenue is the
    monthly contractual rent under existing leases at
    December 31, 2004, multiplied by 12 months. Includes
    contractual amounts to be received pursuant to master lease
    agreements with the sellers on certain properties, which are not
    included in rental income for U.S. generally accepted
    accounting principles, or GAAP.
|   
|(2) | Includes 72,863 square feet (or 2.8% of the portfolio) of
    an unconsolidated partnership, of which we own 21%.                                                                                                                                                                                                                                                                                            

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|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             |                |      |   |         |             |    |            |         |  |            |        |  |        |        |  |  |  |      |   |  |   |       | 
|------------------------ |  | ------------- |  | --------- | -- |  | ----------- |  | --------- | ------ |  | ---------- | ----------- |  | ----------- | -------------- | ---- | - | ------- | ----------- | -- | ---------- | ------- |  | ---------- | ------ |  | ------ | ------ |  |  |  | ---- | - |  | - | ----- | 
|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             |                |      |   |         | Annualized  |   
|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             |                |      |   |         | Revenue per |   
|                         |  |               |  | Number    |    |  |             |  | Rentable  |        |  | Percent of |             |  | Approximate |                |      |   |         | Current     |    |            | Percent |  |            | Leased | 
|                         |  |               |  | of        |    |  | Year Built/ |  |           | Square |  |            | Rentable    |  |             | Percentage     |      |   | Percent |             |    | Annualized |         |  | Annualized |        |  | Square |       
|Property                 |  | Market        |  | Buildings |    |  | Renovated   |  |           | Feet   |  |            | Square Feet |  |             | Lab Space      |      |   | Leased  |             |    | Revenues   |         |  | Revenues   |        |  | Foot   |       
|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             |                |      |   |         |             |    |            |         |  |            |        |  |        |       
|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             | (In thousands) |      |   |         |             |   
|Industrial Road          |  | San Francisco |  |           | 1  |  |             |  | 2001      |        |  |            | 171,965     |  |             |                | 6.6  | % |         |             | 50 | %          |         |  | 73.0       | %      |  | $      | 5,825  |  |  |  | 9.8  | % |  | $ | 46.43 | 
|Bridgeview               |  | San Francisco |  |           | 2  |  |             |  | 1977/1998 |        |  |            | 212,673     |  |             |                | 8.1  | % |         |             | 30 | %          |         |  | 89.0       | %      |  |        | 1,849  |  |  |  | 3.1  | % |  |   | 9.77  | 
|Bayshore Boulevard       |  | San Francisco |  |           | 3  |  |             |  | 2000      |        |  |            | 183,344     |  |             |                | 7.0  | % |         |             | 75 | %          |         |  | 100.0      | %      |  |        | 4,203  |  |  |  | 7.1  | % |  |   | 22.92 | 
|Ardentech Court          |  | San Francisco |  |           | 1  |  |             |  | 1997/2001 |        |  |            | 55,588      |  |             |                | 2.1  | % |         |             | 40 | %          |         |  | 100.0      | %      |  |        | 1,010  |  |  |  | 1.7  | % |  |   | 18.17 | 
|McKellar Court(1)        |  | San Diego     |  |           | 1  |  |             |  | 1988      |        |  |            | 72,863      |  |             |                | 2.8  | % |         |             | 50 | %          |         |  | 100.0      | %      |  |        | 1,639  |  |  |  | 2.8  | % |  |   | 22.49 | 
|Bernardo Center Drive    |  | San Diego     |  |           | 1  |  |             |  | 1974/1992 |        |  |            | 61,286      |  |             |                | 2.3  | % |         |             |   |            |         |  | 100.0      | %      |  |        | 2,113  |  |  |  | 3.6  | % |  |   | 34.48 | 
|Science Center Drive     |  | San Diego     |  |           | 1  |  |             |  | 1995      |        |  |            | 53,740      |  |             |                | 2.0  | % |         |             | 80 | %          |         |  | 100.0      | %      |  |        | 1,660  |  |  |  | 2.8  | % |  |   | 30.88 | 
|Balboa Avenue            |  | San Diego     |  |           | 1  |  |             |  | 1968/2000 |        |  |            | 35,344      |  |             |                | 1.3  | % |         |             |   |            |         |  | 100.0      | %      |  |        | 642    |  |  |  | 1.1  | % |  |   | 18.17 | 
|Towne Centre Drive       |  | San Diego     |  |           | 3  |  |             |  | 2001      |        |  |            | 115,870     |  |             |                | 4.4  | % |         |             | 50 | %          |         |  | 100.0      | %      |  |        | 3,824  |  |  |  | 6.4  | % |  |   | 33.00 | 
|San Diego Science Center |  | San Diego     |  |           | 1  |  |             |  | 1973/2002 |        |  |            | 105,364     |  |             |                | 4.0  | % |         |             | 60 | %          |         |  | 84.8       | %      |  |        | 3,381  |  |  |  | 5.6  | % |  |   | 37.81 | 
|Landmark at Eastview     |  | New York      |  |           | 8  |  |             |  | 1958/1999 |        |  |            | 751,648     |  |             |                | 28.6 | % |         |             | 65 | %          |         |  | 94.9       | %      |  |        | 14,902 |  |  |  | 25.1 | % |  |   | 20.89 | 
|King of Prussia          |  | Pennsylvania  |  |           | 5  |  |             |  | 1954/2004 |        |  |            | 427,109     |  |             |                | 16.3 | % |         |             | 50 | %          |         |  | 100.0      | %      |  |        | 9,121  |  |  |  | 15.3 | % |  |   | 21.35 | 
|Eisenhower Road          |  | Pennsylvania  |  |           | 1  |  |             |  | 1973/2000 |        |  |            | 27,750      |  |             |                | 1.1  | % |         |             | 20 | %          |         |  | 100.0      | %      |  |        | 377    |  |  |  | 0.6  | % |  |   | 13.60 | 
|Elliott Avenue           |  | Seattle       |  |           | 1  |  |             |  | 1925/2004 |        |  |            | 134,989     |  |             |                | 5.1  | % |         |             | 60 | %          |         |  | 100.0      | %      |  |        | 5,077  |  |  |  | 8.5  | % |  |   | 37.61 | 
|Monte Villa Parkway      |  | Seattle       |  |           | 1  |  |             |  | 1996/2002 |        |  |            | 51,000      |  |             |                | 1.9  | % |         |             | 60 | %          |         |  | 100.0      | %      |  |        | 1,172  |  |  |  | 2.0  | % |  |   | 22.99 | 
|Beckley Street           |  | Maryland      |  |           | 1  |  |             |  | 1999      |        |  |            | 77,225      |  |             |                | 2.9  | % |         |             | 70 | %          |         |  | 100.0      | %      |  |        | 1,575  |  |  |  | 2.7  | % |  |   | 20.39 | 
|Tributary Street         |  | Maryland      |  |           | 1  |  |             |  | 1983/1998 |        |  |            | 91,592      |  |             |                | 3.5  | % |         |             | 70 | %          |         |  | 100.0      | %      |  |        | 1,050  |  |  |  | 1.8  | % |  |   | 11.46 | 
|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             |                |      |   |         |             |    |            |         |  |            |        |  |        |       
|Total/ Weighted Average  |  |               |  |           | 33 |  |             |  |           |        |  |            | 2,629,350   |  |             |                | 100  | % |         |             |    |            |         |  | 95.3       | %      |  | $      | 59,420 |  |  |  | 100  | % |  | $ | 23.72 | 
|                         |  |               |  |           |    |  |             |  |           |        |  |            |             |  |             |                |      |   |         |             |    |            |         |  |            |        |  |        |       






|    |                                                                         
|--- | ------------------------------------------------------------------------
|(1) | This property is an unconsolidated partnership, of which we own
    21%.

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Tenant Information




|                                                |  |                |           |            |         |   |             |             |  |            |         |  |            |      |      |   |  |  |        | 
|----------------------------------------------- |  | -------------- | --------- | ---------- | ------- | - | ----------- | ----------- |  | ---------- | ------- |  | ---------- | ---- | ---- | - |  |  | ------ | 
|                                                |  |                |           | Current    |         |   | Annualized  |             |  | Percent    |         |  | Lease      |     
|                                                |  |                |           | Annualized |         |   | Revenue per |             |  | Annualized |         |  | Expiration |     
|Tenant                                          |  | Square Feet    |           |            | Revenue |   |             | Square Feet |  |            | Revenue |  |            | Date |     
|                                                |  |                |           |            |         |   |             |             |  |            |         |  |            |      |     
|                                                |  | (In thousands) |           |            |         |   |            
|Centocor, Inc. (a Johnson & Johnson subsidiary) |  |                | 251,731   |            |         | $ | 6,321       |             |  | $          | 25.11   |  |            |      | 10.7 | % |  |  | Mar-10 | 
|Nektar Therapeutics(1)                          |  |                | 125,491   |            |         |   | 5,826       |             |  |            | 46.43   |  |            |      | 9.8  | % |  |  | Oct-16 | 
|Regeneron Pharmaceuticals, Inc.(2)              |  |                | 211,813   |            |         |   | 4,686       |             |  |            | 22.12   |  |            |      | 7.9  | % |  |  | Dec-09 | 
|Illumina, Inc.                                  |  |                | 115,870   |            |         |   | 3,824       |             |  |            | 33.00   |  |            |      | 6.4  | % |  |  | Aug-14 | 
|Crompton Corporation                            |  |                | 182,829   |            |         |   | 3,377       |             |  |            | 18.47   |  |            |      | 5.7  | % |  |  | Dec-09 | 
|Intermune, Inc.                                 |  |                | 55,898    |            |         |   | 3,207       |             |  |            | 57.37   |  |            |      | 5.4  | % |  |  | Apr-11 | 
|Chiron Corporation                              |  |                | 71,153    |            |         |   | 2,858       |             |  |            | 40.17   |  |            |      | 4.8  | % |  |  | Mar-08 | 
|The Rubenstein Company                          |  |                | 175,378   |            |         |   | 2,800       |             |  |            | 15.97   |  |            |      | 4.7  | % |  |  | Jun-08 | 
|Guilford Pharmaceuticals                        |  |                | 168,817   |            |         |   | 2,625       |             |  |            | 15.55   |  |            |      | 4.4  | % |  |  | Jan-19 | 
|Cell Therapeutics, Inc.                         |  |                | 63,836    |            |         |   | 2,218       |             |  |            | 34.75   |  |            |      | 3.8  | % |  |  | Jan-08 | 
|University of California Regents                |  |                | 61,286    |            |         |   | 2,113       |             |  |            | 34.48   |  |            |      | 3.6  | % |  |  | Apr-07 | 
|ACS(3)                                          |  |                | 71,399    |            |         |   | 1,791       |             |  |            | 25.08   |  |            |      | 3.0  | % |  |  | Dec-07 | 
|Emisphere Technologies, Inc.                    |  |                | 87,022    |            |         |   | 1,744       |             |  |            | 20.04   |  |            |      | 2.9  | % |  |  | Aug-07 | 
|Ligand Pharmaceuticals                          |  |                | 53,740    |            |         |   | 1,660       |             |  |            | 30.88   |  |            |      | 2.8  | % |  |  | Aug-15 | 
|Quidel Corporation(4)                           |  |                | 72,863    |            |         |   | 1,639       |             |  |            | 22.49   |  |            |      | 2.8  | % |  |  | Dec-14 | 
|Aton Pharma, Inc. (a Merck subsidiary)(5)       |  |                | 49,613    |            |         |   | 1,272       |             |  |            | 25.63   |  |            |      | 2.1  | % |  |  | Jun-12 | 
|Nastech Pharmaceutical                          |  |                | 51,000    |            |         |   | 1,172       |             |  |            | 22.99   |  |            |      | 2.0  | % |  |  | Jan-16 | 
|Vicuron Pharmaceuticals, Inc.                   |  |                | 55,588    |            |         |   | 1,010       |             |  |            | 18.17   |  |            |      | 1.7  | % |  |  | Nov-09 | 
|SCVSI/ Pfizer                                   |  |                | 14,013    |            |         |   | 754         |             |  |            | 53.89   |  |            |      | 1.3  | % |  |  | Dec-08 | 
|Progenics Pharmaceuticals                       |  |                | 32,623    |            |         |   | 683         |             |  |            | 20.96   |  |            |      | 1.2  | % |  |  | Dec-09 | 
|                                                |  |                |           |            |         |   |             |             |  |            |         |  |            |      |     
|Total/ Weighted Average                         |  |                | 1,971,963 |            |         | $ | 51,580      |             |  | $          | 26.16   |  |            |      | 87.0 | % |  |  |        | 
|                                                |  |                |           |            |         |   |             |             |  |            |         |  |            |      |     






|    |                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 45,574 square feet expires in July 2007 and
    79,917 square feet expires in October 2016. Nektar
    terminated the 45,574 square foot lease in January 2005,
    which space was simultaneously leased to Nuvelo, Inc. The Nuvelo
    lease includes an additional approximately 10,000 square
    feet over seven years and is expected to commence in September
    2005.
|   
|(2) | 138,086 square feet expires in December 2007 and
    73,726 square feet expires in December 2009.                                                                                                                                                                                                                                                                             
|   
|(3) | In February 2005, the lease was amended to extend the expiration
    date to December 2012.                                                                                                                                                                                                                                                                                   
|   
|(4) | This tenant occupies a property that is an unconsolidated
    partnership, of which we own 21%.                                                                                                                                                                                                                                                                               
|   
|(5) | 10,560 square feet expires in May 2006 and
    39,053 square feet expires in June 2012.                                                                                                                                                                                                                                                                                       

Lease Distribution




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|                        |  |        |           |  |              |                |       |            |  |   |            |  |                |               |       |            |             |   |        |            |  |   |             |  |  |  |       |   |  |   |       | 
|----------------------- |  | ------ | --------- |  | ------------ | -------------- | ----- | ---------- |  | - | ---------- |  | -------------- | ------------- | ----- | ---------- | ----------- | - | ------ | ---------- |  | - | ----------- |  |  |  | ----- | - |  | - | ----- | 
|                        |  |        |           |  |              |                |       |            |  |   |            |  |                | Percent of    |       |            | Revenue per |  
|                        |  |        |           |  |              |                |       | Percent of |  |   | Annualized |  |                |               |       | Annualized |             |   | Leased |           
|                        |  | Leased |           |  | Percent of   |                |       | Current    |  |   | Current    |  |                | Revenues per  |       |            | Annualized  |   |        | Revenues   |  |   | Square Foot | 
|                        |  | Square |           |  | Total Leased |                |       | Annualized |  |   | Annualized |  |                | Leased Square |       |            | Revenues at |   |        | at         |  |   | at          | 
|Square Feet Under Lease |  | Feet   |           |  | Square Feet  |                |       | Revenues   |  |   | Revenues   |  |                | Foot          |       |            | Expiration  |   |        | Expiration |  |   | Expiration  | 
|                        |  |        |           |  |              |                |       |            |  |   |            |  |                |               |       |            |             |   |        |            |  |   |             | 
|                        |  |        |           |  |              | (In thousands) |       |            |  |   |            |  | (In thousands) |               |       |            |             |  
|2,500 or less           |  |        | 16,370    |  |              |                | 0.7   | %          |  | $ | 400        |  |                |               | 0.7   | %          |             | $ | 24.45  |            |  | $ | 404         |  |  |  | 0.6   | % |  | $ | 24.68 | 
|2,501 to 5,000          |  |        | 21,882    |  |              |                | 0.9   | %          |  |   | 556        |  |                |               | 0.9   | %          |             |   | 25.43  |            |  |   | 584         |  |  |  | 0.8   | % |  |   | 26.67 | 
|5,001 to 7,500          |  |        | 19,511    |  |              |                | 0.8   | %          |  |   | 619        |  |                |               | 1.0   | %          |             |   | 31.75  |            |  |   | 638         |  |  |  | 0.9   | % |  |   | 32.70 | 
|7,501 to 10,000         |  |        | 7,842     |  |              |                | 0.3   | %          |  |   | 90         |  |                |               | 0.2   | %          |             |   | 11.50  |            |  |   | 151         |  |  |  | 0.2   | % |  |   | 19.30 | 
|10,001 to 20,000        |  |        | 147,661   |  |              |                | 5.9   | %          |  |   | 3,980      |  |                |               | 6.7   | %          |             |   | 26.96  |            |  |   | 3,996       |  |  |  | 5.8   | % |  |   | 27.06 | 
|20,001 to 40,000        |  |        | 237,286   |  |              |                | 9.5   | %          |  |   | 3,412      |  |                |               | 5.7   | %          |             |   | 14.38  |            |  |   | 3,957       |  |  |  | 5.8   | % |  |   | 16.68 | 
|40,001 to 60,000        |  |        | 313,272   |  |              |                | 12.5  | %          |  |   | 9,633      |  |                |               | 16.2  | %          |             |   | 30.75  |            |  |   | 12,863      |  |  |  | 18.7  | % |  |   | 41.06 | 
|60,001 to 80,000        |  |        | 698,852   |  |              |                | 27.9  | %          |  |   | 18,692     |  |                |               | 31.5  | %          |             |   | 26.75  |            |  |   | 22,613      |  |  |  | 32.9  | % |  |   | 32.36 | 
|80,001 to 100,000       |  |        | 178,614   |  |              |                | 7.1   | %          |  |   | 2,794      |  |                |               | 4.7   | %          |             |   | 15.64  |            |  |   | 3,340       |  |  |  | 4.9   | % |  |   | 18.70 | 
|100,001 to 200,000      |  |        | 612,163   |  |              |                | 24.4  | %          |  |   | 12,922     |  |                |               | 21.8  | %          |             |   | 21.11  |            |  |   | 13,722      |  |  |  | 20.1  | % |  |   | 22.41 | 
|200,001 or greater      |  |        | 251,731   |  |              |                | 10.0  | %          |  |   | 6,322      |  |                |               | 10.6  | %          |             |   | 25.11  |            |  |   | 6,395       |  |  |  | 9.3   | % |  |   | 25.40 | 
|                        |  |        |           |  |              |                |       |            |  |   |            |  |                |               |       |            |             |   |        |            |  |   |             | 
|Total/ Weighted Average |  |        | 2,505,184 |  |              |                | 100.0 | %          |  | $ | 59,420     |  |                |               | 100.0 | %          |             | $ | 23.72  |            |  | $ | 68,663      |  |  |  | 100.0 | % |  | $ | 27.41 | 
|                        |  |        |           |  |              |                |       |            |  |   |            |  |                |               |       |            |             |   |        |            |  |   |             | 

Lease Expirations




|                         |  |          |           |  |         |                |       |            |  |            |            |            |                |            |       |   |             |            |       |             |        |   |             |  |  |  |       |   |  |   |       | 
|------------------------ |  | -------- | --------- |  | ------- | -------------- | ----- | ---------- |  | ---------- | ---------- | ---------- | -------------- | ---------- | ----- | - | ----------- | ---------- | ----- | ----------- | ------ | - | ----------- |  |  |  | ----- | - |  | - | ----- | 
|                         |  | Leased   |           |  | Percent |                |       |            |  |            |            | Annualized |                |            |       |   | Percent of  |            |       | Revenue per |       
|                         |  | Square   |           |  | of      |                |       |            |  | Percent of |            |            | Revenue        |            |       |   |             | Annualized |       |             | Leased |  
|                         |  | Feet of  |           |  | Total   |                |       | Current    |  |            | Current    |            |                | per Leased |       |   | Annualized  |            |       | Revenues    |        |   | Square Foot | 
|                         |  | Expiring |           |  | Square  |                |       | Annualized |  |            | Annualized |            |                | Square     |       |   | Revenues at |            |       | at          |        |   | at          | 
|Year of Lease Expiration |  | Leases   |           |  | Feet    |                |       | Revenues   |  |            | Revenues   |            |                | Foot       |       |   | Expiration  |            |       | Expiration  |        |   | Expiration  | 
|                         |  |          |           |  |         |                |       |            |  |            |            |            |                |            |       |   |             |            |       |             |        |   |             | 
|                         |  |          |           |  |         | (In thousands) |       |            |  |            |            |            | (In thousands) |            |       |   |             |           
|Available                |  |          | 124,166   |  |         |                | 4.7   | %          |  | $          |           |            |                |            |      |   |             | $          |      |             |        | $ |            |  |  |  |      |   |  | $ |      | 
|2005                     |  |          | 153,734   |  |         |                | 5.8   | %          |  |            | 2,372      |            |                |            | 4.0   | % |             |            | 15.43 |             |        |   | 2,394       |  |  |  | 3.5   | % |  |   | 15.57 | 
|2006                     |  |          | 142,820   |  |         |                | 5.4   | %          |  |            | 2,557      |            |                |            | 4.3   | % |             |            | 17.90 |             |        |   | 2,615       |  |  |  | 3.8   | % |  |   | 18.31 | 
|2007                     |  |          | 431,950   |  |         |                | 16.4  | %          |  |            | 11,074     |            |                |            | 18.6  | % |             |            | 25.64 |             |        |   | 11,052      |  |  |  | 16.1  | % |  |   | 25.59 | 
|2008                     |  |          | 325,674   |  |         |                | 12.4  | %          |  |            | 8,664      |            |                |            | 14.6  | % |             |            | 26.60 |             |        |   | 9,248       |  |  |  | 13.5  | % |  |   | 28.40 | 
|2009                     |  |          | 381,366   |  |         |                | 14.5  | %          |  |            | 7,866      |            |                |            | 13.2  | % |             |            | 20.62 |             |        |   | 8,088       |  |  |  | 11.8  | % |  |   | 21.21 | 
|2010                     |  |          | 276,058   |  |         |                | 10.5  | %          |  |            | 6,681      |            |                |            | 11.2  | % |             |            | 24.20 |             |        |   | 6,812       |  |  |  | 9.9   | % |  |   | 24.67 | 
|2011                     |  |          | 55,898    |  |         |                | 2.1   | %          |  |            | 3,207      |            |                |            | 5.4   | % |             |            | 57.37 |             |        |   | 4,058       |  |  |  | 5.9   | % |  |   | 72.59 | 
|2012                     |  |          | 39,053    |  |         |                | 1.5   | %          |  |            | 996        |            |                |            | 1.7   | % |             |            | 25.50 |             |        |   | 1,289       |  |  |  | 1.9   | % |  |   | 33.00 | 
|2013                     |  |          | 104,952   |  |         |                | 4.0   | %          |  |            | 851        |            |                |            | 1.4   | % |             |            | 8.11  |             |        |   | 2,014       |  |  |  | 2.9   | % |  |   | 19.19 | 
|2014                     |  |          | 188,733   |  |         |                | 7.2   | %          |  |            | 5,462      |            |                |            | 9.2   | % |             |            | 28.94 |             |        |   | 6,986       |  |  |  | 10.2  | % |  |   | 37.02 | 
|Thereafter               |  |          | 404,946   |  |         |                | 15.5  | %          |  |            | 9,690      |            |                |            | 16.4  | % |             |            | 23.93 |             |        |   | 14,107      |  |  |  | 20.5  | % |  |   | 34.84 | 
|                         |  |          |           |  |         |                |       |            |  |            |            |            |                |            |       |   |             |            |       |             |        |   |             | 
|Total/ Weighted Average  |  |          | 2,629,350 |  |         |                | 100.0 | %          |  | $          | 59,420     |            |                |            | 100.0 | % |             | $          | 23.72 |             |        | $ | 68,663      |  |  |  | 100.0 | % |  | $ | 27.41 | 
|                         |  |          |           |  |         |                |       |            |  |            |            |            |                |            |       |   |             |            |       |             |        |   |             | 






|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders



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PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities



|     |  |         |        |  |      |   |       |     |  |   |       |  |  |               |       |  |  |   |        | 
|---- |  | ------- | ------ |  | ---- | - | ----- | --- |  | - | ----- |  |  | ------------- | ----- |  |  | - | ------ | 
|Year |  | Quarter |        |  | High |   |       | Low |  |   | Close |  |  | Distributions |      
|     |  |         |        |  |      |   |       |     |  |   |       |  |  |               |      
|2004 |  |         | Third  |  |      | $ | 18.05 |     |  | $ | 15.75 |  |  | $             | 17.59 |  |  | $ | 0.1497 | 
|     |  |         | Fourth |  |      | $ | 22.95 |     |  | $ | 17.10 |  |  | $             | 22.21 |  |  | $ | 0.27   | 










|        |                                                                                              
|------- | ---------------------------------------------------------------------------------------------
|Item 6. | Selected Financial Data (not covered by Report of
    Independent Registered Accounting Firm)



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BIOMED REALTY TRUST, INC. AND BIOMED REALTY TRUST
PREDECESSOR


(Dollars in thousands, except per share data)


|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |         |       | 
|---------------------------------------------------- | -------------------- | -------------------------------- | ---------- | -------- | ----------- | - | ------ | ------------ | ----- | - | ------------ | ------ | ----- | ------------ | ------ | ------ | ------------ | - | ------ | ------- | ----- | - | ------ | ------- | ----- | 
|                                                     |                      | BioMed Realty                    |            |          | Predecessor |  
|                                                     |                      | Trust, Inc.                      |            |          |             |  
|                                                     |                      |                                  |            |          | Period      |   |        |             
|                                                     |                      | Period                           |            |          | January 1,  |   |        |             
|                                                     |                      | August 11,                       |            |          | 2004        |   |        | Year Ended   |      
|                                                     |                      | 2004 through                     |            |          | through     |   |        |              |      
|                                                     |                      | December 31,                     |            |          | August 17,  |   |        | December 31, |       |   | December 31, |        |       | December 31, |        |        | December 31, |  
|                                                     |                      | 2004                             |            |          | 2004        |   |        | 2003         |       |   | 2002         |        |       | 2001(1)      |        |        | 2000(1)      |  
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|Statements of Income:                                |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |        
|Revenues:                                            |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |        
|Rental                                               |                      | $                                | 19,432     |          |             | $ | 3,339  |              |       | $ | 6,275        |        |       | $            | 5,869  |        |              | $ | 4,421  |         |       | $ | 955    |        
|Tenant recoveries                                    |                      |                                  | 9,222      |          |             |   | 375    |              |       |   | 744          |        |       |              | 718    |        |              |   | 283    |         |       |   | 101    |        
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|                                                     |                      | Total revenues                   |            |          | 28,654      |   |        |              | 3,714 |   |              |        | 7,019 |              |        |        | 6,587        |   |        |         | 4,704 |   |        |         | 1,056 | 
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|Expenses:                                            |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |        
|Rental operations                                    |                      |                                  | 11,619     |          |             |   | 353    |              |       |   | 830          |        |       |              | 821    |        |              |   | 323    |         |       |   | 169    |        
|Depreciation and amortization                        |                      |                                  | 7,853      |          |             |   | 600    |              |       |   | 955          |        |       |              | 955    |        |              |   | 617    |         |       |   | 5      |        
|General and administrative                           |                      |                                  | 3,130      |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|                                                     |                      | Total expenses                   |            |          | 22,602      |   |        |              | 953   |   |              |        | 1,785 |              |        |        | 1,776        |   |        |         | 940   |   |        |         | 174   | 
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|                                                     |                      | Income from operations           |            |          | 6,052       |   |        |              | 2,761 |   |              |        | 5,234 |              |        |        | 4,811        |   |        |         | 3,764 |   |        |         | 882   | 
|Equity in net loss of unconsolidated partnership     |                      |                                  | (11        | )        |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Interest income                                      |                      |                                  | 190        |          |             |   |       |              |       |   | 1            |        |       |              | 3      |        |              |   | 16     |         |       |   | 4      |        
|Interest expense                                     |                      |                                  | (1,180     | )        |             |   | (1,760 | )            |       |   | (2,901       | )      |       |              | (3,154 | )      |              |   | (2,722 | )       |       |   |       |        
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|                                                     |                      | Income before minority interests |            |          | 5,051       |   |        |              | 1,001 |   |              |        | 2,334 |              |        |        | 1,660        |   |        |         | 1,058 |   |        |         | 886   | 
|Minority interests                                   |                      |                                  | (269       | )        |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|                                                     |                      | Net income                       |            | $        | 4,782       |   |        | $            | 1,001 |   |              | $      | 2,334 |              |        | $      | 1,660        |   |        | $       | 1,058 |   |        | $       | 886   | 
|                                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |  
|Basic earnings per share                             |                      | $                                | 0.15       |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Diluted earnings per share                           |                      | $                                | 0.15       |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Weighted average common shares outstanding  basic   |                      |                                  | 30,965,178 |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Weighted average common shares outstanding  diluted |                      |                                  | 33,767,575 |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Cash dividends declared per common share             |                      | $                                | 0.4197     |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Balance Sheet Data (at period end):                  |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |        
|Rental properties, net                               |                      | $                                | 468,488    |          |             |   |       |              |       | $ | 47,025       |        |       | $            | 47,853 |        |              | $ | 48,627 |         |       | $ | 36,279 |        
|Total assets                                         |                      |                                  | 581,723    |          |             |   |       |              |       |   | 50,056       |        |       |              | 50,732 |        |              |   | 50,500 |         |       |   | 37,755 |        
|Mortgages and other secured loans                    |                      |                                  | 102,236    |          |             |   |       |              |       |   | 37,208       |        |       |              | 37,743 |        |              |   | 36,879 |         |       |   | 16,039 |        
|Total liabilities                                    |                      |                                  | 137,639    |          |             |   |       |              |       |   | 37,597       |        |       |              | 38,560 |        |              |   | 37,962 |         |       |   | 25,000 |        
|Minority interest                                    |                      |                                  | 22,267     |          |             |   |       |              |       |   |             |        |       |              |       |        |              |   |       |         |       |   |       |        
|Stockholders equity and partners capital           |                      |                                  | 421,817    |          |             |   |       |              |       |   | 12,459       |        |       |              | 12,169 |        |              |   | 12,538 |         |       |   | 12,752 |        
|Total liabilities and equity                         |                      |                                  | 581,723    |          |             |   |       |              |       |   | 50,056       |        |       |              | 50,732 |        |              |   | 50,500 |         |       |   | 37,755 |        
|Other Data:                                          |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |        
|Cash flows from:                                     |                      |                                  |            |          |             |   |        |              |       |   |              |        |       |              |        |        |              |   |        |         |       |   |        |        
|                                                     | Operating activities |                                  |            | 13,959   |             |   |        |             |       |   |              | 2,416  |       |              |        | 1,762  |              |   |        | 1,239   |       |   |        | (410    | )    
|                                                     | Investing activities |                                  |            | (456,680 | )           |   |        |             |       |   |              | (105   | )     |              |        | (159   | )            |   |        | (17,703 | )     |   |        | (18,482 | )    
|                                                     | Financing activities |                                  |            | 470,433  |             |   |        |             |       |   |              | (2,666 | )     |              |        | (1,210 | )            |   |        | 16,569  |       |   |        | 18,906  |      






|    |                                  
|--- | ---------------------------------
|(1) | Balance sheet data are unaudited.

30



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion should be read in conjunction with
the financial statements and notes thereto appearing elsewhere
in this report. We make statements in this section that are
forward-looking statements within the meaning of the federal
securities laws. For a complete discussion of forward-looking
statements, see the section in this Form 10-K entitled
Forward-Looking Statements. Certain risk factors may
cause our actual results, performance or achievements to differ
materially from those expressed or implied by the following
discussion. For a discussion of such risk factors, see the
section in this Form 10-K entitled Risk
Factors.


Overview
















31



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Factors Which May Influence Future Operations










Critical Accounting Policies




32



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##### Table of Contents





| |                
| | ---------------
| | REIT Compliance







| |                               
| | ------------------------------
| | Investments in Rental Property







33



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##### Table of Contents











| |                    
| | -------------------
| | Revenue Recognition







| |                              
| | -----------------------------
| | Depreciation and Amortization

Business Combinations


Results of Operations






34



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|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |   |      |      |   |        |        |        | 
|----------------------------- | ------------------------------------------------ | -------------------------------- | ------ | ------ | ------------ | -------- | ------------ | ------------ | ----- |  | --------- | ------ | ----- | ----- | - | ---- | ---- | - | ------ | ------ | ------ | 
|                              |                                                  |                                  |        |        |              | Combined |              |              |       |  |          
|                              |                                                  | BioMed Realty                    |        |        |              |          | Contribution |              |       |  |           |       
|                              |                                                  | Trust, Inc.                      |        |        | Predecessor  |          |              | Properties   |       |  |           |        |      
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |      
|                              |                                                  | Period                           |        |        | Period       |          |              | Period       |       |  |           |        |      
|                              |                                                  | August 11,                       |        |        | January 1,   |          |              | January 1,   |       |  |           |        |      
|                              |                                                  | 2004 through                     |        |        | 2004 through |          |              | 2004 through |       |  |           |        |      
|                              |                                                  | December 31,                     |        |        | August 17,   |          |              | the Date of  |       |  | Combining |        |       |      
|                              |                                                  | 2004                             |        |        | 2004         |          |              | Contribution |       |  | Entries   |        |       | Total |  
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|Year Ended December 31, 2004: |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |   |      |      |   |        |       
|Revenues:                     |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |   |      |      |   |        |       
|                              | Rental                                           |                                  | $      | 19,432 |              |          | $            | 3,339        |       |  | $         | 2,831  |       |       |   |     |      |   | $      | 25,602 |       
|                              | Tenant recoveries                                |                                  |        | 9,222  |              |          |              | 375          |       |  |           | 479    |       |       |   |     |      |   |        | 10,076 |       
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|                              |                                                  |                                  | 28,654 |        |              |          | 3,714        |              |       |  | 3,310     |        |       |       |  |      |      |   | 35,678 |       
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|Expenses:                     |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |   |      |      |   |        |       
|                              | Rental operations                                |                                  |        | 11,619 |              |          |              | 353          |       |  |           | 353    |       |       |   |     |      |   |        | 12,325 |       
|                              | Depreciation and amortization                    |                                  |        | 7,853  |              |          |              | 600          |       |  |           | 543    |       |       |   |     |      |   |        | 8,996  |       
|                              | General and administrative                       |                                  |        | 3,130  |              |          |              |             |       |  |           | 97     |       |       |   |     |      |   |        | 3,227  |       
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|                              |                                                  |                                  | 22,602 |        |              |          | 953          |              |       |  | 993       |        |       |       |  |      |      |   | 24,548 |       
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|                              |                                                  | Income from operations           |        |        | 6,052        |          |              |              | 2,761 |  |           |        | 2,317 |       |   |      |     |   |        |        | 11,130 | 
|                              | Equity in net loss of unconsolidated partnership |                                  |        | (11    | )            |          |              |             |       |  |           |       |       |       |   |     |      |   |        | (11    | )     
|                              | Interest income                                  |                                  |        | 190    |              |          |              |             |       |  |           | 10     |       |       |   |     |      |   |        | 200    |       
|                              | Interest expense                                 |                                  |        | (1,180 | )            |          |              | (1,760       | )     |  |           | (1,594 | )     |       |   |     |      |   |        | (4,534 | )     
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|                              |                                                  | Income before minority interests |        |        | 5,051        |          |              |              | 1,001 |  |           |        | 733   |       |   |      |     |   |        |        | 6,785  | 
|                              | Minority interests                               |                                  |        | (269   | )            |          |              |             |       |  |           | (223   | )     |       |   | (582 | )    |   |        | (1,074 | )     
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  
|                              |                                                  | Net income                       |        | $      | 4,782        |          |              | $            | 1,001 |  |           | $      | 510   |       |   | $    | (582 | ) |        | $      | 5,711  | 
|                              |                                                  |                                  |        |        |              |          |              |              |       |  |           |        |       |       |  

35



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|                              |                               |                                  |       |              |            |  |           |         |       |  |       |        |        |   |        |        |       | 
|----------------------------- | ----------------------------- | -------------------------------- | ----- | ------------ | ---------- |  | --------- | ------- | ----- |  | ----- | ------ | ------ | - | ------ | ------ | ----- | 
|                              |                               |                                  |       | Combined     |            |  |           |         |      
|                              |                               |                                  |       | Contribution |            |  | Combining |         |       | 
|                              |                               | Predecessor                      |       |              | Properties |  |           | Entries |       |  | Total |       
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|Year Ended December 31, 2003: |                               |                                  |       |              |            |  |           |         |       |  |       |        |        |   |        |       
|Revenues:                     |                               |                                  |       |              |            |  |           |         |       |  |       |        |        |   |        |       
|                              | Rental                        |                                  | $     | 6,275        |            |  | $         | 4,189   |       |  |       |       |        |   | $      | 10,464 |      
|                              | Tenant recoveries             |                                  |       | 744          |            |  |           | 743     |       |  |       |       |        |   |        | 1,487  |      
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|                              |                               |                                  | 7,019 |              |            |  | 4,932     |         |       |  |      |        |        |   | 11,951 |       
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|Expenses:                     |                               |                                  |       |              |            |  |           |         |       |  |       |        |        |   |        |       
|                              | Rental operations             |                                  |       | 830          |            |  |           | 633     |       |  |       |       |        |   |        | 1,463  |      
|                              | Depreciation and amortization |                                  |       | 955          |            |  |           | 854     |       |  |       |       |        |   |        | 1,809  |      
|                              | General and administrative    |                                  |       |             |            |  |           | 155     |       |  |       |       |        |   |        | 155    |      
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|                              |                               |                                  | 1,785 |              |            |  | 1,642     |         |       |  |      |        |        |   | 3,427  |       
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|                              |                               | Income from operations           |       |              | 5,234      |  |           |         | 3,290 |  |       |        |       |   |        |        | 8,524 | 
|                              | Interest income               |                                  |       | 1            |            |  |           | 33      |       |  |       |       |        |   |        | 34     |      
|                              | Interest expense              |                                  |       | (2,901       | )          |  |           | (2,449  | )     |  |       |       |        |   |        | (5,350 | )    
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|                              |                               | Income before minority interests |       |              | 2,334      |  |           |         | 874   |  |       |        |       |   |        |        | 3,208 | 
|                              | Minority interests            |                                  |       |             |            |  |           | (297    | )     |  |       | (1,367 | )      |   |        | (1,664 | )    
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       
|                              |                               | Net income                       |       | $            | 2,334      |  |           | $       | 577   |  |       | $      | (1,367 | ) |        | $      | 1,544 | 
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |       

|                              |                               |                                  |       |              |            |  |           |         |       |  |       |      |      |   |        |        |       | 
|----------------------------- | ----------------------------- | -------------------------------- | ----- | ------------ | ---------- |  | --------- | ------- | ----- |  | ----- | ---- | ---- | - | ------ | ------ | ----- | 
|                              |                               |                                  |       | Combined     |            |  |           |         |      
|                              |                               |                                  |       | Contribution |            |  | Combining |         |       | 
|                              |                               | Predecessor                      |       |              | Properties |  |           | Entries |       |  | Total |     
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|Year Ended December 31, 2002: |                               |                                  |       |              |            |  |           |         |       |  |       |      |      |   |        |       
|Revenues:                     |                               |                                  |       |              |            |  |           |         |       |  |       |      |      |   |        |       
|                              | Rental                        |                                  | $     | 5,869        |            |  | $         | 4,189   |       |  |       |     |      |   | $      | 10,058 |      
|                              | Tenant recoveries             |                                  |       | 718          |            |  |           | 745     |       |  |       |     |      |   |        | 1,463  |      
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|                              |                               |                                  | 6,587 |              |            |  | 4,934     |         |       |  |      |      |      |   | 11,521 |       
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|Expenses:                     |                               |                                  |       |              |            |  |           |         |       |  |       |      |      |   |        |       
|                              | Rental operations             |                                  |       | 821          |            |  |           | 638     |       |  |       |     |      |   |        | 1,459  |      
|                              | Depreciation and amortization |                                  |       | 955          |            |  |           | 860     |       |  |       |     |      |   |        | 1,815  |      
|                              | General and administrative    |                                  |       |             |            |  |           | 161     |       |  |       |     |      |   |        | 161    |      
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|                              |                               |                                  | 1,776 |              |            |  | 1,659     |         |       |  |      |      |      |   | 3,435  |       
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|                              |                               | Income from operations           |       |              | 4,811      |  |           |         | 3,275 |  |       |      |     |   |        |        | 8,086 | 
|                              | Interest income               |                                  |       | 3            |            |  |           | 57      |       |  |       |     |      |   |        | 60     |      
|                              | Interest expense              |                                  |       | (3,154       | )          |  |           | (2,579  | )     |  |       |     |      |   |        | (5,733 | )    
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|                              |                               | Income before minority interests |       |              | 1,660      |  |           |         | 753   |  |       |      |     |   |        |        | 2,413 | 
|                              | Minority interests            |                                  |       |             |            |  |           | (237    | )     |  |       | (965 | )    |   |        | (1,202 | )    
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     
|                              |                               | Net income                       |       | $            | 1,660      |  |           | $       | 516   |  |       | $    | (965 | ) |        | $      | 1,211 | 
|                              |                               |                                  |       |              |            |  |           |         |       |  |       |     



| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Comparison of the Year Ended December 31, 2004 to the
    Year Ended December 31, 2003



36



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Business
Combinations


Rental Revenues.


Tenant Recoveries.


Rental Operations Expenses.


Depreciation and Amortization Expense.


General and Administrative Expenses.


Interest Income.


Interest Expense.


Minority Interests.


37



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| |                                                                               
| | ------------------------------------------------------------------------------
| | Comparison of Year Ended December 31, 2003 to Year
    Ended December 31, 2002

Rental Revenues.


Tenant Recoveries.


Rental Operations Expenses.


Depreciation and Amortization Expense.


General and Administrative Expenses.


Interest Income.


Interest Expense.


Minority Interests.


Funds from Operations




38



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|                                                     |                                                    |   |            |       | 
|---------------------------------------------------- | -------------------------------------------------- | - | ---------- | ----- | 
|Net income                                           |                                                    | $ | 4,782      |      
|Adjustments                                          |                                                    |   |            |      
|                                                     | Minority interests                                 |   |            | 414   | 
|                                                     | Depreciation and amortization  real estate assets |   |            | 7,903 | 
|                                                     |                                                    |   |           
|Funds from operations                                |                                                    | $ | 13,099     |      
|                                                     |                                                    |   |           
|Funds from operations per share  diluted            |                                                    | $ | 0.39       |      
|                                                     |                                                    |   |           
|Weighted-average common shares outstanding  diluted |                                                    |   | 33,767,575 |      
|                                                     |                                                    |   |           

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.            









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|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |   |         |  |  |  |                   | 
|-------------------- |  | -------- | ----- |  | --------- |  | ----- | --------- |  | ----------- | ------- |  | ----- | ----- | ----- |  | ------------- | - | ------- |  |  |  | ----------------- | 
|                     |  | Stated   |       |  |           |  |       |           |  |             |         |  |      
|                     |  | Fixed    |       |  | Effective |  |       |           |  | Unamortized |         |  | Total |       |       | 
|                     |  | Interest |       |  | Interest  |  |       | Principal |  |             | Premium |  |       | Book  |       |  |              
|                     |  | Rate     |       |  | Rate      |  |       | Amount    |  |             | Amount  |  |       | Value |       |  | Maturity Date |  
|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  
|Science Center Drive |  |          | 7.65% |  |           |  | 5.04% |           |  | $           | 11,699  |  |       | $     | 1,677 |  |               | $ | 13,376  |  |  |  | July 1, 2011      | 
|Bridgeview           |  |          | 8.07% |  |           |  | 5.04% |           |  |             | 11,825  |  |       |       | 1,856 |  |               |   | 13,681  |  |  |  | January 1, 2011   | 
|Elliott Avenue       |  |          | 7.38% |  |           |  | 4.63% |           |  |             | 16,996  |  |       |       | 1,111 |  |               |   | 18,107  |  |  |  | November 24, 2007 | 
|Eisenhower Road      |  |          | 5.80% |  |           |  | 4.63% |           |  |             | 2,252   |  |       |       | 79    |  |               |   | 2,331   |  |  |  | May 5, 2008       | 
|Ardentech Court      |  |          | 7.25% |  |           |  | 5.06% |           |  |             | 4,828   |  |       |       | 612   |  |               |   | 5,440   |  |  |  | July 1, 2012      | 
|Towne Centre Drive   |  |          | 4.55% |  |           |  | 4.55% |           |  |             | 22,856  |  |       |       |      |  |               |   | 22,856  |  |  |  | January 1, 2010   | 
|Monte Villa Parkway  |  |          | 4.55% |  |           |  | 4.55% |           |  |             | 10,007  |  |       |       |      |  |               |   | 10,007  |  |  |  | January 1, 2010   | 
|Bayshore Boulevard   |  |          | 4.55% |  |           |  | 4.55% |           |  |             | 16,438  |  |       |       |      |  |               |   | 16,438  |  |  |  | January 1, 2010   | 
|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  
|                     |  |          |       |  |           |  |       |           |  | $           | 96,901  |  |       | $     | 5,335 |  |               | $ | 102,236 |  |  |  |                   | 
|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  



40



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|           |  |   |        | 
|---------- |  | - | ------ | 
|2005       |  | $ | 1,834  | 
|2006       |  |   | 2,018  | 
|2007       |  |   | 17,613 | 
|2008       |  |   | 3,733  | 
|2009       |  |   | 1,717  | 
|Thereafter |  |   | 69,986 | 
|           |  |   |       
|           |  | $ | 96,901 | 
|           |  |   |       





Contractual Obligations


|                                                       |  |                |       |  |      |   |       |      |  |   |        |  |  |      |       |  |            |   |       |       |  |   |        |  |  |   |         | 
|------------------------------------------------------ |  | -------------- | ----- |  | ---- | - | ----- | ---- |  | - | ------ |  |  | ---- | ----- |  | ---------- | - | ----- | ----- |  | - | ------ |  |  | - | ------- | 
|Obligation                                             |  | 2005           |       |  | 2006 |   |       | 2007 |  |   | 2008   |  |  | 2009 |       |  | Thereafter |   |       | Total | 
|                                                       |  |                |       |  |      |   |       |      |  |   |        |  |  |      |       |  |            |   |       |       | 
|                                                       |  | (In thousands) |      
|Secured notes payable(1)                               |  | $              | 7,713 |  |      | $ | 7,713 |      |  | $ | 23,092 |  |  | $    | 7,993 |  |            | $ | 5,828 |       |  | $ | 74,092 |  |  | $ | 126,431 | 
|Share of secured debt of unconsolidated partnership(2) |  |                | 219   |  |      |   | 219   |      |  |   | 219    |  |  |      | 219   |  |            |   | 219   |       |  |   | 2,143  |  |  |   | 3,238   | 
|Tenant obligations(3)                                  |  |                | 1,650 |  |      |   |      |      |  |   |       |  |  |      |      |  |            |   |      |       |  |   |       |  |  |   | 1,650   | 
|Construction projects                                  |  |                | 205   |  |      |   |      |      |  |   |       |  |  |      |      |  |            |   |      |       |  |   |       |  |  |   | 205     | 
|                                                       |  |                |       |  |      |   |       |      |  |   |        |  |  |      |       |  |            |   |       |       | 
|Total                                                  |  | $              | 9,787 |  |      | $ | 7,932 |      |  | $ | 23,311 |  |  | $    | 8,212 |  |            | $ | 6,047 |       |  | $ | 76,235 |  |  | $ | 131,524 | 
|                                                       |  |                |       |  |      |   |       |      |  |   |        |  |  |      |       |  |            |   |       |       | 






|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(1) | Balance excludes $5.4 million of unamortized debt premium.                                
|   
|(2) | Balance excludes $1.2 million of unamortized debt premium.                                
|   
|(3) | Committed tenant-related obligations based on executed leases as
    of December 31, 2004.

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Off Balance Sheet Arrangements


Consolidation of Variable Interest Entities


|               |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |   |       |  |  |  |                 | 
|-------------- |  | -------- | ----- |  | --------- |  | ----- | --------- |  | ----------- | ------- |  | ----- | ----- | ----- |  | ------------- | - | ----- |  |  |  | --------------- | 
|               |  | Stated   |       |  |           |  |       |           |  |             |         |  |      
|               |  | Fixed    |       |  | Effective |  |       |           |  | Unamortized |         |  | Total |       |       | 
|               |  | Interest |       |  | Interest  |  |       | Principal |  |             | Premium |  |       | Book  |       |  |              
|               |  | Rate     |       |  | Rate      |  |       | Amount    |  |             | Amount  |  |       | Value |       |  | Maturity Date |  
|               |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  
|McKellar Court |  |          | 8.56% |  |           |  | 4.63% |           |  | $           | 2,275   |  |       | $     | 1,248 |  |               | $ | 3,523 |  |  |  | January 1, 2010 | 

Cash Flows




|                                                    |  |                         |          |   |                 |   |        |        |  |   |          |  
|--------------------------------------------------- |  | ----------------------- | -------- | - | --------------- | - | ------ | ------ |  | - | -------- | -
|                                                    |  | Year Ended December 31, |         
|                                                    |  |                         |         
|                                                    |  | BioMed                  |          |   | Predecessor and |   |        |       
|                                                    |  | Realty Trust,           |          |   | Combined        |   |        |       
|                                                    |  | Inc. and                |          |   | Contribution    |   |        |       
|                                                    |  | Predecessor             |          |   | Properties      |   |        |       
|                                                    |  | 2004                    |          |   | 2003            |   |        | Change | 
|                                                    |  |                         |          |   |                 |   |        |        | 
|Net cash provided by operating activities           |  | $                       | 13,959   |   |                 | $ | 4,383  |        |  | $ | 9,576    |  
|Net cash used in investing activities               |  |                         | (456,680 | ) |                 |   | (105   | )      |  |   | (456,575 | )
|Net cash provided by (used in) financing activities |  |                         | 470,433  |   |                 |   | (4,563 | )      |  |   | 474,996  |  
|Ending cash balance                                 |  |                         | 27,869   |   |                 |   | 355    |        |  |   | 27,514   |  





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Comparison of the Year Ended December 31, 2004 to the
    Year Ended December 31, 2003





42



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Cash Distribution Policy


i.e.




Inflation











|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk





43



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44



---















|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


|                                                                                                                                                                                                                                                                                                                                                                       |  |      |    | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                                                                                                                                                                                                                                                       |  | Page |   
|                                                                                                                                                                                                                                                                                                                                                                       |  |      |   
|Report of Independent Registered Public
    Accounting Firm                                                                                                                                                                                                                                                                                                            |  |      | 46 | 
|Consolidated Balance Sheet for BioMed
    Realty Trust, Inc. as of December 31, 2004 and Balance
    Sheet for Inhale 201 Industrial Road, L.P. (Predecessor) as of
    December 31, 2003                                                                                                                                                                              |  |      | 47 | 
|Consolidated Statement of Income for BioMed
    Realty Trust, Inc. for the period from August 11, 2004
    through December 31, 2004, and Statements of Income for
    Inhale 201 Industrial Road, L.P. (Predecessor) for the period
    from January 1, 2004 through August 17, 2004 and for
    the years ended December 31, 2003 and 2002                           |  |      | 48 | 
|Consolidated Statement of
    Stockholders Equity for BioMed Realty Trust, Inc. for the
    period from August 11, 2004 through December 31, 2004,
    and Statements of Owners Equity for Inhale 201 Industrial
    Road, L.P. (Predecessor) for the period from January 1,
    2004 through August 17, 2004 and for the years ended
    December 31, 2003 and 2002 |  |      | 49 | 
|Consolidated and Combined Statements of
    Cash Flows for BioMed Realty Trust, Inc. and Inhale 201
    Industrial Road, L.P. (Predecessor) for the year ended
    December 31, 2004 and Statements of Cash Flows for Inhale
    201 Industrial Road, L.P. (Predecessor) for the years ended
    December 31, 2003 and 2002                                            |  |      | 50 | 
|Notes to Consolidated Financial
    Statements                                                                                                                                                                                                                                                                                                                         |  |      | 52 | 
|Financial Statement 
    Schedule III                                                                                                                                                                                                                                                                                                                                 |  |      | 68 | 



45



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














| |         
| | --------
| | KPMG LLP





46



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##### Table of Contents






BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


CONSOLIDATED BALANCE SHEETS


|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |         |        |        |        |        | 
|-------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------- | ------------------------------------- | ---------------------------------------------------------- | ---------- | ----------------- | ------- | ------ | ------ | ------ | ------ | 
|                                                                                                   |                                                                                                           |                                       |                                                            | INHALE 201 |                  
|                                                                                                   |                                                                                                           |                                       |                                                            | INDUSTRIAL |                  
|                                                                                                   |                                                                                                           | BIOMED REALTY                         |                                                            |            | ROAD, L.P.        |        
|                                                                                                   |                                                                                                           | TRUST, INC.                           |                                                            |            | (PREDECESSOR)     |        
|                                                                                                   |                                                                                                           | December 31, 2004                     |                                                            |            | December 31, 2003 |        
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           | (In thousands, except per share data) |                                                           
|ASSETS                                                                                            
|Rental property:                                                                                   |                                                                                                           |                                       |                                                            |            |                   |         |        |       
|                                                                                                   | Land                                                                                                      |                                       | $                                                          | 68,755     |                   |         | $      | 12,000 |       
|                                                                                                   | Ground lease                                                                                              |                                       |                                                            | 14,217     |                   |         |        |       |       
|                                                                                                   | Buildings and improvements                                                                                |                                       |                                                            | 388,785    |                   |         |        | 37,588 |       
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           |                                       | 471,757                                                    |            |                   |         | 49,588 |       
|                                                                                                   | Less: accumulated depreciation and amortization                                                           |                                       |                                                            | (3,269     | )                 |         |        | (2,563 | )     
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           | Net rental property                   |                                                            |            | 468,488           |         |        |        | 47,025 |       
|Investment in unconsolidated partnership                                                           |                                                                                                           |                                       | 2,470                                                      |            |                   |         |       |       
|Cash and cash equivalents                                                                          |                                                                                                           |                                       | 27,869                                                     |            |                   |         | 157    |       
|Restricted cash                                                                                    |                                                                                                           |                                       | 2,470                                                      |            |                   |         |       |       
|Accounts receivable, net of allowance for doubtful accounts of
    $150 at December 31, 2004       |                                                                                                           |                                       | 1,837                                                      |            |                   |         |       |       
|Accrued straight-line rents, net of allowance for doubtful
    accounts of $8 at December 31, 2004 |                                                                                                           |                                       | 3,306                                                      |            |                   |         | 2,427  |       
|Acquired above market leases, net of accumulated amortization of
    $538 at December 31, 2004     |                                                                                                           |                                       | 8,006                                                      |            |                   |         |       |       
|Deferred leasing costs, net                                                                        |                                                                                                           |                                       | 61,503                                                     |            |                   |         | 287    |       
|Deferred loan costs, net                                                                           |                                                                                                           |                                       | 1,700                                                      |            |                   |         | 29     |       
|Prepaid expenses                                                                                   |                                                                                                           |                                       | 1,531                                                      |            |                   |         |       |       
|Other assets                                                                                       |                                                                                                           |                                       | 2,543                                                      |            |                   |         | 131    |       
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           |                                       | Total assets                                               |            | $                 | 581,723 |        |        | $      | 50,056 | 
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                  
|LIABILITIES AND STOCKHOLDERS AND OWNERS EQUITY                                                  
|Liabilities:                                                                                       |                                                                                                           |                                       |                                                            |            |                   |         |        |       
|                                                                                                   | Secured notes payable, net                                                                                |                                       | $                                                          | 102,236    |                   |         | $      | 34,208 |       
|                                                                                                   | Security deposits                                                                                         |                                       |                                                            | 4,831      |                   |         |        |       |       
|                                                                                                   | Due to affiliates                                                                                         |                                       |                                                            | 53         |                   |         |        | 3,000  |       
|                                                                                                   | Dividends and distributions payable                                                                       |                                       |                                                            | 9,249      |                   |         |        |       |       
|                                                                                                   | Accounts payable and accrued expenses                                                                     |                                       |                                                            | 7,529      |                   |         |        | 389    |       
|                                                                                                   | Acquired lease obligations, net of accumulated amortization of
    $251 at December 31, 2004              |                                       |                                                            | 13,741     |                   |         |        |       |       
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           |                                       | Total liabilities                                          |            |                   | 137,639 |        |        |        | 37,597 | 
|Minority interests                                                                                 |                                                                                                           |                                       | 22,267                                                     |            |                   |         |       |       
|Stockholders and owners 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, 31,386,333 shares issued and outstanding |                                       |                                                            | 314        |                   |         |        |       |       
|                                                                                                   | Additional paid-in capital                                                                                |                                       |                                                            | 434,075    |                   |         |        |       |       
|                                                                                                   | Deferred compensation                                                                                     |                                       |                                                            | (4,182     | )                 |         |        |       |       
|                                                                                                   | Dividends in excess of earnings                                                                           |                                       |                                                            | (8,390     | )                 |         |        |       |       
|                                                                                                   | Owners equity                                                                                            |                                       |                                                            |           |                   |         |        | 12,459 |       
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           |                                       | Total stockholders and owners equity                     |            |                   | 421,817 |        |        |        | 12,459 | 
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        
|                                                                                                   |                                                                                                           |                                       | Total liabilities and stockholders and owners
    equity |            | $                 | 581,723 |        |        | $      | 50,056 | 
|                                                                                                   |                                                                                                           |                                       |                                                            |            |                   |        



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


CONSOLIDATED STATEMENTS OF INCOME


|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |        |       |  |   |        |       | 
|------------------------------------------- | ------------------------------------------------ | ------------------------------------- | ---- | -------------------------------- | --------------- |  | - | ----------------- | ----- |  | ----------------- | ------ | ----- |  | - | ------ | ----- | 
|                                            |                                                  |                                       |      | INHALE 201 INDUSTRIAL ROAD, L.P. |                
|                                            |                                                  | BIOMED REALTY                         |      |                                  | (PREDECESSOR)   | 
|                                            |                                                  | TRUST, INC.                           |      |                                  |                 | 
|                                            |                                                  |                                       |      |                                  | Period          |  |   |                  
|                                            |                                                  | Period August 11,                     |      |                                  | January 1, 2004 |  |   |                  
|                                            |                                                  | 2004 through                          |      |                                  | through         |  |   | Year Ended        |       |  | Year Ended        |       
|                                            |                                                  | December 31, 2004                     |      |                                  | August 17, 2004 |  |   | December 31, 2003 |       |  | December 31, 2002 |       
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            |                                                  | (In thousands, except per share data) |     
|Revenues:                                   |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |        |       |  |   |       
|                                            | Rental                                           |                                       | $    | 19,432                           |                 |  | $ | 3,339             |       |  | $                 | 6,275  |       |  | $ | 5,869  |      
|                                            | Tenant recoveries                                |                                       |      | 9,222                            |                 |  |   | 375               |       |  |                   | 744    |       |  |   | 718    |      
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            |                                                  | Total revenues                        |      |                                  | 28,654          |  |   |                   | 3,714 |  |                   |        | 7,019 |  |   |        | 6,587 | 
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|Expenses:                                   |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |        |       |  |   |       
|                                            | Rental operations                                |                                       |      | 11,619                           |                 |  |   | 353               |       |  |                   | 830    |       |  |   | 821    |      
|                                            | Depreciation and amortization                    |                                       |      | 7,853                            |                 |  |   | 600               |       |  |                   | 955    |       |  |   | 955    |      
|                                            | General and administrative                       |                                       |      | 3,130                            |                 |  |   |                  |       |  |                   |       |       |  |   |       |      
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            |                                                  | Total expenses                        |      |                                  | 22,602          |  |   |                   | 953   |  |                   |        | 1,785 |  |   |        | 1,776 | 
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            |                                                  | Income from operations                |      |                                  | 6,052           |  |   |                   | 2,761 |  |                   |        | 5,234 |  |   |        | 4,811 | 
|                                            | Equity in net loss of unconsolidated partnership |                                       |      | (11                              | )               |  |   |                  |       |  |                   |       |       |  |   |       |      
|                                            | Interest income                                  |                                       |      | 190                              |                 |  |   |                  |       |  |                   | 1      |       |  |   | 3      |      
|                                            | Interest expense                                 |                                       |      | (1,180                           | )               |  |   | (1,760            | )     |  |                   | (2,901 | )     |  |   | (3,154 | )    
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            |                                                  | Income before minority interests      |      |                                  | 5,051           |  |   |                   | 1,001 |  |                   |        | 2,334 |  |   |        | 1,660 | 
|                                            | Minority interests                               |                                       |      | (269                             | )               |  |   |                  |       |  |                   |       |       |  |   |       |      
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            |                                                  | Net income                            |      | $                                | 4,782           |  |   | $                 | 1,001 |  |                   | $      | 2,334 |  |   | $      | 1,660 | 
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|Basic earnings per share                    |                                                  | $                                     | 0.15 |                                  |                 |  |   |                   |       |  |                   |        |       |  |   |       
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|Diluted earnings per share                  |                                                  | $                                     | 0.15 |                                  |                 |  |   |                   |       |  |                   |        |       |  |   |       
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|Weighted-average common shares outstanding: |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |        |       |  |   |       
|                                            | Basic                                            |                                       |      | 30,965,178                       |                 |  |   |                   |       |  |                   |        |       |  |   |        |      
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       
|                                            | Diluted                                          |                                       |      | 33,767,575                       |                 |  |   |                   |       |  |                   |        |       |  |   |        |      
|                                            |                                                  |                                       |      |                                  |                 |  |   |                   |       |  |                   |       



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY AND


STATEMENTS OF OWNERS EQUITY


|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |   |  |   |         |   |  |   |         |  
|--------------- | -------------------------------------------- | --------------------------------- |  | ---------- | ------ | ---------- | - | ------- |  |  | ------------ | ------- |  | --------- | - | ------ | ------- |  | - | ------- | - |  | - | ------- | - |  | - | ------- | -
|                |                                              |                                   |  |            |        | Additional |   |         |  |  | Dividends in |         |  |           |   |       
|                |                                              | Number                            |  |            | Common |            |   | Paid-In |  |  | Deferred     |         |  | Excess of |   |        | Owners |  |   |        
|                |                                              | of Shares                         |  |            | Stock  |            |   | Capital |  |  | Compensation |         |  | Earnings  |   |        | Equity  |  |   | Total   |  
|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |  
|                |                                              | (In thousands, except share data) | 
|The Predecessor |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |   |  |   |         |   |  |   |        
|                | Balance at December 31, 2001                 |                                   |  |           |        |            | $ |        |  |  | $            |        |  |           | $ |       |         |  | $ |        |   |  | $ | 12,538  |   |  | $ | 12,538  |  
|                | Distributions                                |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | (2,029  | ) |  |   | (2,029  | )
|                | Net income                                   |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | 1,660   |   |  |   | 1,660   |  
|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |  
|                | Balance at December 31, 2002                 |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | 12,169  |   |  |   | 12,169  |  
|                | Distributions                                |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | (2,044  | ) |  |   | (2,044  | )
|                | Net income                                   |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | 2,334   |   |  |   | 2,334   |  
|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |  
|                | Balance at December 31, 2003                 |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | 12,459  |   |  |   | 12,459  |  
|                | Distributions                                |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | (1,215  | ) |  |   | (1,215  | )
|                | Net income                                   |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | 1,001   |   |  |   | 1,001   |  
|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |  
|                | Balance at August 11, 2004                   |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | 12,245  |   |  |   | 12,245  |  
|The Company     |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |   |  |   |         |   |  |   |        
|                | Buyout of owners equity of Predecessor      |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   |        |   |  |   | (12,245 | ) |  |   | (12,245 | )
|                | Net proceeds from sale of common stock       |                                   |  | 31,050,000 |        |            |   | 311     |  |  |              | 429,024 |  |           |   |       |         |  |   |        |   |  |   |        |   |  |   | 429,335 |  
|                | Issuance of unvested restricted common stock |                                   |  | 336,333    |        |            |   | 3       |  |  |              | 5,051   |  |           |   | (5,054 | )       |  |   |        |   |  |   |        |   |  |   |        |  
|                | Vesting of restricted common stock           |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   | 872    |         |  |   |        |   |  |   |        |   |  |   | 872     |  
|                | Dividends                                    |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   | (13,172 | ) |  |   |        |   |  |   | (13,172 | )
|                | Net income                                   |                                   |  |           |        |            |   |        |  |  |              |        |  |           |   |       |         |  |   | 4,782   |   |  |   |        |   |  |   | 4,782   |  
|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |  
|                | Balance at December 31, 2004                 |                                   |  | 31,386,333 |        |            | $ | 314     |  |  | $            | 434,075 |  |           | $ | (4,182 | )       |  | $ | (8,390  | ) |  | $ |        |   |  | $ | 421,817 |  
|                |                                              |                                   |  |            |        |            |   |         |  |  |              |         |  |           |   |        |         |  |   |         |  



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS


|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |      |      |       |       |      |      |       |  
|--------------------- | ------------------------------------------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------------- | ----------------------------------------- | ------------------ | ------ | -------- | ------------------ | ---- | ---- | ----- | ----- | ---- | ---- | ----- | -
|                      |                                                                                       | Biomed Realty                                                               |                                       |                                           |                    |        |         
|                      |                                                                                       | Trust, Inc. and                                                             |                                       |                                           |                    |        |         
|                      |                                                                                       | Inhale 201                                                                  |                                       |                                           | Inhale 201         |        |          | Inhale 201         |     
|                      |                                                                                       | Industrial Road,                                                            |                                       |                                           | Industrial Road,   |        |          | Industrial Road,   |     
|                      |                                                                                       | L.P. (Predecessor)                                                          |                                       |                                           | L.P. (Predecessor) |        |          | L.P. (Predecessor) |     
|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |     
|                      |                                                                                       | Year Ended                                                                  |                                       |                                           | Year Ended         |        |          | Year Ended         |     
|                      |                                                                                       | December 31, 2004                                                           |                                       |                                           | December 31, 2003  |        |          | December 31, 2002  |     
|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |     
|                      |                                                                                       | (In thousands)                                                              |                                      
|Operating activities: |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |      |      |       |      
|                      | Net income                                                                            |                                                                             | $                                     | 5,783                                     |                    |        | $        | 2,334              |      |      | $     | 1,660 |     
|                      | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                             |                                       |                                           |                    |        |          |                    |      |      |       |       |     
|                      |                                                                                       | Minority interests                                                          |                                       |                                           | 269                |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Depreciation and amortization                                               |                                       |                                           | 8,453              |        |          |                    | 955  |      |       |       | 955  |     
|                      |                                                                                       | Bad debt expense                                                            |                                       |                                           | 158                |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Revenue reduction attributable to acquired above market leases              |                                       |                                           | 538                |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Revenue recognized related to acquired lease obligations                    |                                       |                                           | (251               | )      |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Vesting of restricted common stock                                          |                                       |                                           | 872                |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Amortization of loan costs                                                  |                                       |                                           | 216                |        |          |                    | 73   |      |       |       | 411  |     
|                      |                                                                                       | Interest expense reduction for amortization of debt premium                 |                                       |                                           | (307               | )      |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Loss from unconsolidated partnership                                        |                                       |                                           | 11                 |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Changes in operating assets and liabilities:                                |                                       |                                           |                    |        |          |                    |      |      |       |       |      |     
|                      |                                                                                       |                                                                             | Accounts receivable                   |                                           |                    | (1,987 | )        |                    |      |     |       |       |      |     |      
|                      |                                                                                       |                                                                             | Accrued straight-line rents           |                                           |                    | (887   | )        |                    |      | (648 | )     |       |      | (759 | )    
|                      |                                                                                       |                                                                             | Prepaid expenses                      |                                           |                    | (1,531 | )        |                    |      |     |       |       |      |     |      
|                      |                                                                                       |                                                                             | Other assets                          |                                           |                    | (712   | )        |                    |      | 133  |       |       |      | (243 | )    
|                      |                                                                                       |                                                                             | Due to affiliates                     |                                           |                    | 53     |          |                    |      |     |       |       |      |     |      
|                      |                                                                                       |                                                                             | Restricted cash                       |                                           |                    | (2,470 | )        |                    |      |     |       |       |      |     |      
|                      |                                                                                       |                                                                             | Accounts payable and accrued expenses |                                           |                    | 5,751  |          |                    |      | (431 | )     |       |      | (262 | )    
|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |     
|                      |                                                                                       |                                                                             |                                       | Net cash provided by operating activities |                    |        | 13,959   |                    |      |      | 2,416 |       |      |      | 1,762 |  
|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |     
|                      | Investing activities:                                                                 |                                                                             |                                       |                                           |                    |        |          |                    |      |      |       |       |     
|                      |                                                                                       | Expenditures for improvements to rental property                            |                                       |                                           | (290               | )      |          |                    | (105 | )    |       |       | (159 | )   
|                      |                                                                                       | Purchases of interests in rental property and related intangible
    assets |                                       |                                           | (459,264           | )      |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Security deposits received from prior owners of rental property             |                                       |                                           | 4,831              |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Tenant improvement funds received from prior owners of rental
    property  |                                       |                                           | 1,389              |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Receipts of master lease payments (reduction to rental property)            |                                       |                                           | 1,327              |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Distributions received from unconsolidated partnership                      |                                       |                                           | 27                 |        |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Funds held in escrow for acquisitions (other assets)                        |                                       |                                           | (1,700             | )      |          |                    |     |      |       |       |     |     
|                      |                                                                                       | Repayment of related party payables                                         |                                       |                                           | (3,000             | )      |          |                    |     |      |       |       |     |     
|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |     
|                      |                                                                                       |                                                                             |                                       | Net cash used in investing activities     |                    |        | (456,680 | )                  |      |      | (105  | )     |      |      | (159  | )
|                      |                                                                                       |                                                                             |                                       |                                           |                    |        |          |                    |     

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|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |        |        |     |   |        |        |  
|------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | - | ------------------ | ------- | --- | ------------------ | ------ | ------ | --- | - | ------ | ------ | -
|                                                  |                                                                             | Biomed Realty                                                                                                                              |                                                      |   |                    |         |    
|                                                  |                                                                             | Trust, Inc. and                                                                                                                            |                                                      |   |                    |         |    
|                                                  |                                                                             | Inhale 201                                                                                                                                 |                                                      |   | Inhale 201         |         |     | Inhale 201         |       
|                                                  |                                                                             | Industrial Road,                                                                                                                           |                                                      |   | Industrial Road,   |         |     | Industrial Road,   |       
|                                                  |                                                                             | L.P. (Predecessor)                                                                                                                         |                                                      |   | L.P. (Predecessor) |         |     | L.P. (Predecessor) |       
|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |       
|                                                  |                                                                             | Year Ended                                                                                                                                 |                                                      |   | Year Ended         |         |     | Year Ended         |       
|                                                  |                                                                             | December 31, 2004                                                                                                                          |                                                      |   | December 31, 2003  |         |     | December 31, 2002  |       
|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |       
|                                                  |                                                                             | (In thousands)                                                                                                                             |                                                     
|                                                  | Financing activities:                                                       |                                                                                                                                            |                                                      |   |                    |         |     |                    |        |        |     |   |       
|                                                  |                                                                             | Proceeds from initial public offering                                                                                                      |                                                      |   | 465,753            |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Payment of offering costs                                                                                                                  |                                                      |   | (36,415            | )       |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Payment of loan costs                                                                                                                      |                                                      |   | (1,701             | )       |     |                    | (87    | )      |     |   |       |       
|                                                  |                                                                             | Line of credit proceeds                                                                                                                    |                                                      |   | 33,900             |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Line of credit repayments                                                                                                                  |                                                      |   | (33,900            | )       |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Principal payments on secured notes payable                                                                                                |                                                      |   | (234               | )       |     |                    | (762   | )      |     |   | (528   | )     
|                                                  |                                                                             | Proceeds from secured notes payable                                                                                                        |                                                      |   | 49,300             |         |     |                    | 227    |        |     |   | 1,348  |       
|                                                  |                                                                             | Distributions to operating partnership unit holders                                                                                        |                                                      |   | (357               | )       |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Dividends paid                                                                                                                             |                                                      |   | (4,698             | )       |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Distributions to owners of Predecessor                                                                                                     |                                                      |   | (1,215             | )       |     |                    | (2,044 | )      |     |   | (2,030 | )     
|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |       
|                                                  |                                                                             |                                                                                                                                            | Net cash provided by (used in) financing activities  |   |                    | 470,433 |     |                    |        | (2,666 | )   |   |        | (1,210 | )
|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |       
|                                                  |                                                                             |                                                                                                                                            | Net increase (decrease) in cash and cash equivalents |   |                    | 27,712  |     |                    |        | (355   | )   |   |        | 393    |  
|Cash and cash equivalents at beginning of period  |                                                                             |                                                                                                                                            | 157                                                  |   |                    |         | 512 |                    |        |        | 119 |  
|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |       
|Cash and cash equivalents at end of period        |                                                                             | $                                                                                                                                          | 27,869                                               |   |                    | $       | 157 |                    |        | $      | 512 |  
|                                                  |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |       
|Supplemental disclosure of cash flow information: |                                                                             |                                                                                                                                            |                                                      |   |                    |         |     |                    |        |        |     |  
|                                                  |                                                                             | Cash paid during the period for interest                                                                                                   |                                                      | $ | 3,040              |         |     | $                  | 2,600  |        |     | $ | 3,393  |       
|                                                  | Supplemental disclosure of non-cash investing and financing
    activities: |                                                                                                                                            |                                                      |   |                    |         |     |                    |        |        |     |   |       
|                                                  |                                                                             | Secured notes payable assumed (includes premium of $5,642)                                                                                 |                                                      |   | 53,477             |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Historic cost basis of assets transferred from Predecessor
    (including $2,189 of accrued straight-line rents as of
    August 17, 2004) |                                                      |   | 48,569             |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Operating partnership units issued for interests in certain
    contributed properties                                                     |                                                      |   | 21,810             |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Investment in unconsolidated partnership acquired by issuing
    Operating Partnership units                                               |                                                      |   | 2,508              |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Distributions in excess of equity balance to owners of
    Predecessor                                                                     |                                                      |   | 5,131              |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Accrual for offering costs                                                                                                                 |                                                      |   | (423               | )       |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Accrual for dividends declared                                                                                                             |                                                      |   | 8,474              |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Accrual for distributions declared for operating partnership
    unit holders                                                              |                                                      |   | 775                |         |     |                    |       |        |     |   |       |       
|                                                  |                                                                             | Restricted stock awards                                                                                                                    |                                                      |   | 5,054              |         |     |                    |       |        |     |   |       |       



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




|   |                                         
|-- | ----------------------------------------
|1. | Organization and Description of Business









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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Business Combinations




|   |                                                                         
|-- | ------------------------------------------------------------------------
|2. | Basis of Presentation and Summary of Significant Accounting
    Policies



| |                            
| | ---------------------------
| | Principles of Consolidation





| |                               
| | ------------------------------
| | Investments in Rental Property



|                                   |  |                                                               
|---------------------------------- |  | --------------------------------------------------------------
|Buildings and improvements         |  | 40 years                                                      
|Ground lease                       |  | Term of the related lease                                     
|Tenant improvements                |  | Shorter of the useful lives or the terms of the related leases
|Furniture, fixtures, and equipment |  | 3-5 years                                                     
|Acquired in-place leases           |  | Non-cancelable term of the related lease                      
|Acquired management agreements     |  | Non-cancelable term of the related agreement                  



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














| |                                                                         
| | ------------------------------------------------------------------------
| | Impairment of Long-Lived Assets and Long-Lived Assets to
    be Disposed



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                
| | ---------------
| | Restricted Cash





| |                         
| | ------------------------
| | Statements of Cash Flows





| |                       
| | ----------------------
| | Deferred Leasing Costs



|                               |  |                   |        |  |              |   |        |     |  |   |        | 
|------------------------------ |  | ----------------- | ------ |  | ------------ | - | ------ | --- |  | - | ------ | 
|                               |  | Balance at        |        |  | Accumulated  |   |        |    
|                               |  | December 31, 2004 |        |  | Amortization |   |        | Net | 
|                               |  |                   |        |  |              |   |        |     | 
|Acquired in-place leases       |  | $                 | 57,663 |  |              | $ | (4,001 | )   |  | $ | 53,662 | 
|Acquired management agreements |  |                   | 8,151  |  |              |   | (576   | )   |  |   | 7,575  | 
|Deferred leasing commissions   |  |                   | 361    |  |              |   | (95    | )   |  |   | 266    | 
|                               |  |                   |        |  |              |   |        |     | 
|                               |  | $                 | 66,175 |  |              | $ | (4,672 | )   |  | $ | 61,503 | 
|                               |  |                   |        |  |              |   |        |     | 



|                             |  |                   |     |  |              |   |     |     |  |   |     | 
|---------------------------- |  | ----------------- | --- |  | ------------ | - | --- | --- |  | - | --- | 
|                             |  | Balance at        |     |  | Accumulated  |   |     |    
|                             |  | December 31, 2003 |     |  | Amortization |   |     | Net | 
|                             |  |                   |     |  |              |   |     |     | 
|Deferred leasing commissions |  | $                 | 360 |  |              | $ | (73 | )   |  | $ | 287 | 



| |                    
| | -------------------
| | Deferred Loan Costs





| |                    
| | -------------------
| | Revenue Recognition



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Reporting Revenue Gross as a
Principal versus Net as an Agent


Recognition of Receipts from Made-Up Rental
Shortfalls




| |                                
| | -------------------------------
| | Allowance for Doubtful Accounts





| |                 
| | ----------------
| | Incentive Awards

Accounting for
Stock-Based Compensation




| |                      
| | ---------------------
| | Equity Offering Costs





| |             
| | ------------
| | Income Taxes





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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                            
| | ---------------------------
| | Dividends and Distributions





| |                       
| | ----------------------
| | Managements Estimates





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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                  
| | -----------------
| | Reclassifications





|   |                   
|-- | ------------------
|3. | Minority Interests





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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                      
|-- | ---------------------
|4. | Secured Notes Payable



|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |   |         |  |  |  |                   | 
|-------------------- |  | -------- | ----- |  | --------- |  | ----- | --------- |  | ----------- | ------- |  | ----- | ----- | ----- |  | ------------- | - | ------- |  |  |  | ----------------- | 
|                     |  | Stated   |       |  |           |  |       |           |  |             |         |  |      
|                     |  | Fixed    |       |  | Effective |  |       |           |  | Unamortized |         |  | Total |       |       | 
|                     |  | Interest |       |  | Interest  |  |       | Principal |  |             | Premium |  |       | Book  |       |  |              
|                     |  | Rate     |       |  | Rate      |  |       | Amount    |  |             | Amount  |  |       | Value |       |  | Maturity Date |  
|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  
|Science Center Drive |  |          | 7.65% |  |           |  | 5.04% |           |  | $           | 11,699  |  |       | $     | 1,677 |  |               | $ | 13,376  |  |  |  | July 1, 2011      | 
|Bridgeview           |  |          | 8.07% |  |           |  | 5.04% |           |  |             | 11,825  |  |       |       | 1,856 |  |               |   | 13,681  |  |  |  | January 1, 2011   | 
|Elliott Avenue       |  |          | 7.38% |  |           |  | 4.63% |           |  |             | 16,996  |  |       |       | 1,111 |  |               |   | 18,107  |  |  |  | November 24, 2007 | 
|Eisenhower Road      |  |          | 5.80% |  |           |  | 4.63% |           |  |             | 2,252   |  |       |       | 79    |  |               |   | 2,331   |  |  |  | May 5, 2008       | 
|Ardentech Court      |  |          | 7.25% |  |           |  | 5.06% |           |  |             | 4,828   |  |       |       | 612   |  |               |   | 5,440   |  |  |  | July 1, 2012      | 
|Towne Centre Drive   |  |          | 4.55% |  |           |  | 4.55% |           |  |             | 22,856  |  |       |       |      |  |               |   | 22,856  |  |  |  | January 1, 2010   | 
|Monte Villa Parkway  |  |          | 4.55% |  |           |  | 4.55% |           |  |             | 10,007  |  |       |       |      |  |               |   | 10,007  |  |  |  | January 1, 2010   | 
|Bayshore Boulevard   |  |          | 4.55% |  |           |  | 4.55% |           |  |             | 16,438  |  |       |       |      |  |               |   | 16,438  |  |  |  | January 1, 2010   | 
|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  
|                     |  |          |       |  |           |  |       |           |  | $           | 96,901  |  |       | $     | 5,335 |  |               | $ | 102,236 |  |  |  |                   | 
|                     |  |          |       |  |           |  |       |           |  |             |         |  |       |       |       |  |               |  





|           |  |   |        | 
|---------- |  | - | ------ | 
|2005       |  | $ | 1,834  | 
|2006       |  |   | 2,018  | 
|2007       |  |   | 17,613 | 
|2008       |  |   | 3,733  | 
|2009       |  |   | 1,717  | 
|Thereafter |  |   | 69,986 | 
|           |  |   |       
|           |  | $ | 96,901 | 
|           |  |   |       



|   |               
|-- | --------------
|5. | Line of Credit



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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                   
|-- | ------------------
|6. | Earnings Per Share



Earnings per Share


|                                            |                                                      |                             |       |            |           | 
|------------------------------------------- | ---------------------------------------------------- | --------------------------- | ----- | ---------- | --------- | 
|                                            |                                                      | Period August 11, 2004      |      
|                                            |                                                      | through                     |      
|                                            |                                                      | December 31, 2004           |      
|                                            |                                                      |                             |      
|Net income attributable to common shares    |                                                      | $                           | 4,782 |           
|                                            |                                                      |                             |      
|Weighted-average common shares outstanding: |                                                      |                             |       |           
|                                            | Basic                                                |                             |       | 30,965,178 |          
|                                            | Incremental shares from assumed conversion/exercise: |                             |       |            |          
|                                            |                                                      | Stock warrant               |       |            | 51,681    | 
|                                            |                                                      | Vesting of restricted stock |       |            | 90,173    | 
|                                            |                                                      | Operating Partnership Units |       |            | 2,660,543 | 
|                                            |                                                      |                             |      
|                                            | Diluted                                              |                             |       | 33,767,575 |          
|                                            |                                                      |                             |      
|Earnings per share  basic and diluted      |                                                      | $                           | 0.15  |           
|                                            |                                                      |                             |      



|   |                                    
|-- | -----------------------------------
|7. | Fair Value of Financial Instruments

Disclosure about Fair Value of
Financial Instruments


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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|   |                     
|-- | --------------------
|8. | Incentive Award Plan







|   |                                         
|-- | ----------------------------------------
|9. | Investment in Unconsolidated Partnership

Consolidation of Variable Interest Entities


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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                    
|--- | ---------------------------------------------------
|10. | Financial Interests Subject to Put and Call Options





|    |                    
|--- | -------------------
|11. | Segment Information







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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                 |                                                      |           |         |       |           |   |         |         |           |   |            |       |    |              |         |           |          |   |        |           |    |   |        |     |   |   |        |        |    |   |         |        |   
|------------------------------------------------ | ---------------------------------------------------- | --------- | ------- | ----- | --------- | - | ------- | ------- | --------- | - | ---------- | ----- | -- | ------------ | ------- | --------- | -------- | - | ------ | --------- | -- | - | ------ | --- | - | - | ------ | ------ | -- | - | ------- | ------ | --
|                                                 |                                                      | San       |         |       |           |   |         |         | New York/ |   |            |       |    |              |         | Corporate |          |   |       
|                                                 |                                                      | Francisco |         |       | San Diego |   |         | Seattle |           |   | New Jersey |       |    | Pennsylvania |         |           | Maryland |   |        | and Other |    |   | Total  |    
|                                                 |                                                      |           |         |       |           |   |         |         |           |   |            |       |    |              |         |           |          |   |        |           |    |   |        |    
|Total revenues                                   |                                                      | $         | 5,165   |       |           | $ | 4,621   |         |           | $ | 2,975      |       |    | $            | 11,167  |           |          | $ | 4,565  |           |    | $ | 161    |     |   | $ |       |        |    | $ | 28,654  |       
|                                                 | % of total revenues                                  |           |         | 18.0  | %         |   |         | 16.1    | %         |   |            | 10.4  | %  |              |         | 39.0      | %        |   |        | 15.9      | %  |   |        | 0.6 | % |   |        | 0.0    | %  |   |         | 100.0  | % 
|Rental operations expenses                       |                                                      | $         | 732     |       |           | $ | 820     |         |           | $ | 421        |       |    | $            | 7,194   |           |          | $ | 2,197  |           |    | $ | 17     |     |   | $ | 238    |        |    | $ | 11,619  |       
|                                                 | % of total rental operations expenses                |           |         | 6.3   | %         |   |         | 7.1     | %         |   |            | 3.6   | %  |              |         | 61.9      | %        |   |        | 18.9      | %  |   |        | 0.1 | % |   |        | 2.0    | %  |   |         | 100.0  | % 
|Net operating income                             |                                                      | $         | 4,433   |       |           | $ | 3,801   |         |           | $ | 2,554      |       |    | $            | 3,973   |           |          | $ | 2,368  |           |    | $ | 144    |     |   | $ | (238   | )      |    | $ | 17,035  |       
|                                                 | % of total net operating income                      |           |         | 26.0  | %         |   |         | 22.3    | %         |   |            | 15.0  | %  |              |         | 23.3      | %        |   |        | 13.9      | %  |   |        | 0.8 | % |   |        | (1.4   | )% |   |         | 100.0  | % 
|Depreciation and amortization                    |                                                      | $         | 1,326   |       |           | $ | 1,689   |         |           | $ | 1,193      |       |    | $            | 2,279   |           |          | $ | 1,337  |           |    | $ | 29     |     |   |   |       |        |    | $ | 7,853   |       
|                                                 | % of total depreciation and amortization             |           |         | 16.9  | %         |   |         | 21.5    | %         |   |            | 15.2  | %  |              |         | 29.0      | %        |   |        | 17.0      | %  |   |        | 0.4 | % |   |        |       |    |   |         | 100.0  | % 
|General and administrative                       |                                                      |           |        |       |           |   |        |         |           |   |           |       |    |              |        |           |          |   |       |           |    |   |       |     |   | $ | 3,130  |        |    | $ | 3,130   |       
|                                                 | % of total general and administrative                |           |         |      |           |   |         |        |           |   |            |      |    |              |         |          |          |   |        |          |    |   |        |    |   |   |        | 100.0  | %  |   |         | 100.0  | % 
|Equity in net loss of unconsolidated partnership |                                                      |           |        |       |           | $ | (11     | )       |           |   |           |       |    |              |        |           |          |   |       |           |    |   |       |     |   |   |       |        |    | $ | (11     | )     
|                                                 | % of total equity loss of unconsolidated partnership |           |         |      |           |   |         | (100.0  | )%        |   |            |      |    |              |         |          |          |   |        |          |    |   |        |    |   |   |        |       |    |   |         | (100.0 | )%
|Interest income                                  |                                                      | $         | 2       |       |           | $ | 16      |         |           | $ | 6          |       |    | $            | 16      |           |          | $ | 1      |           |    |   |       |     |   | $ | 149    |        |    | $ | 190     |       
|                                                 | % of total interest income                           |           |         | 1.2   | %         |   |         | 8.4     | %         |   |            | 3.1   | %  |              |         | 8.4       | %        |   |        | 0.5       | %  |   |        |    |   |   |        | 78.4   | %  |   |         | 100.0  | % 
|Interest expense                                 |                                                      | $         | (269    | )     |           | $ | (200    | )       |           | $ | (301       | )     |    |              |        |           |          | $ | (43    | )         |    |   |       |     |   | $ | (367   | )      |    | $ | (1,180  | )     
|                                                 | % of total interest expense                          |           |         | (22.8 | )%        |   |         | (16.9   | )%        |   |            | (25.5 | )% |              |         |          |          |   |        | (3.7      | )% |   |        |    |   |   |        | (31.1  | )% |   |         | (100.0 | )%
|Minority interests                               |                                                      |           |        |       |           |   |        |         |           |   |           |       |    |              |        |           |          | $ | 145    |           |    |   |       |     |   | $ | (414   | )      |    | $ | (269    | )     
|                                                 | % of total minority interests                        |           |         |      |           |   |         |        |           |   |            |      |    |              |         |          |          |   |        |          |    |   |        |    |   |   |        | (100.0 | )% |   |         | (100.0 | )%
|Net income                                       |                                                      | $         | 2,840   |       |           | $ | 1,917   |         |           | $ | 1,066      |       |    | $            | 1,710   |           |          | $ | 1,134  |           |    | $ | 115    |     |   | $ | (4,000 | )      |    | $ | 4,782   |       
|                                                 | % of total net income                                |           |         | 59.4  | %         |   |         | 40.1    | %         |   |            | 22.3  | %  |              |         | 35.8      | %        |   |        | 23.7      | %  |   |        | 2.4 | % |   |        | (83.6  | )% |   |         | 100.0  | % 
|Improvements to rental property                  |                                                      |           |        |       |           | $ | 30      |         |           |   |           |       |    | $            | 260     |           |          |   |       |           |    |   |       |     |   |   |       |        |    | $ | 290     |       
|Investment in unconsolidated partnership         |                                                      |           |        |       |           | $ | 2,470   |         |           |   |           |       |    |              |        |           |          |   |       |           |    |   |       |     |   |   |       |        |    | $ | 2,470   |       
|Total assets                                     |                                                      | $         | 131,852 |       |           | $ | 129,908 |         |           | $ | 70,630     |       |    | $            | 101,794 |           |          | $ | 93,358 |           |    | $ | 31,833 |     |   | $ | 22,348 |        |    | $ | 581,723 |       

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BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                      
|--- | ---------------------
|12. | Property Acquisitions



|                                |  |          |        |  |         |   |       |                  |  |  |                   | 
|------------------------------- |  | -------- | ------ |  | ------- | - | ----- | ---------------- |  |  | ----------------- | 
|                                |  | Purchase |        |  | Debt    |   |       |                 
|                                |  | Price    |        |  | Assumed |   |       | Acquisition Date | 
|                                |  |          |        |  |         |   |       |                  | 
|San Diego Science Center        |  | $        | 29,750 |  |         | $ |      |                  |  |  | October 21, 2004  | 
|Ardentech Court  San Francisco |  |          | 10,500 |  |         |   | 4,800 | (1)              |  |  | November 18, 2004 | 
|Beckley Street  Maryland       |  |          | 15,240 |  |         |   |      |                  |  |  | December 17, 2004 | 
|Tributary Street  Maryland     |  |          | 10,160 |  |         |   |      |                  |  |  | December 17, 2004 | 
|                                |  |          |        |  |         |   |       |                  | 
|                                |  | $        | 65,650 |  |         | $ | 4,800 |                  |  |  |                   | 
|                                |  |          |        |  |         |   |       |                  | 






|    |                                   
|--- | ----------------------------------
|(1) | Excludes $622,000 of debt premium.



|    |                    
|--- | -------------------
|13. | Future Minimum Rent



|           |  |   |         | 
|---------- |  | - | ------- | 
|2005       |  | $ | 54,038  | 
|2006       |  |   | 52,512  | 
|2007       |  |   | 49,307  | 
|2008       |  |   | 37,588  | 
|2009       |  |   | 36,491  | 
|Thereafter |  |   | 135,828 | 
|           |  |   |        
|           |  | $ | 365,764 | 
|           |  |   |        



|                     |  |   |         | 
|-------------------- |  | - | ------- | 
|Location             |  |  
|                     |  |  
|San Francisco        |  | $ | 110,670 | 
|San Diego            |  |   | 76,324  | 
|Seattle              |  |   | 20,892  | 
|New York/ New Jersey |  |   | 51,276  | 
|Pennsylvania         |  |   | 57,885  | 
|Maryland             |  |   | 48,717  | 
|                     |  |   |        
|                     |  | $ | 365,764 | 
|                     |  |   |        



|    |                              
|--- | -----------------------------
|14. | Commitments and Contingencies



| |                             
| | ----------------------------
| | Concentration of Credit Risk



64



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##### Table of Contents



BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |                    
| | -------------------
| | Capital Commitments





| |          
| | ---------
| | Insurance





| |                      
| | ---------------------
| | Environmental Matters





| |                                                                 
| | ----------------------------------------------------------------
| | Tax Indemnification Agreements and Minimum Debt
    Requirements





|    |                                       
|--- | --------------------------------------
|15. | Newly Issued Accounting Pronouncements

Share-Based Payment


65



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##### Table of Contents



BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Exchange of Nonmonetary Assets, an amendment of APB Opinion
No. 29




|    |                  
|--- | -----------------
|16. | Subsequent Events











66



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##### Table of Contents



BIOMED REALTY TRUST, INC. AND


INHALE 201 INDUSTRIAL ROAD, L.P. (PREDECESSOR)


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                            
|--- | -------------------------------------------
|17. | Quarterly Financial Information (unaudited)



|                                        |  |                              |        |           |                |   |         |            |  |   |          |   |  |           |       |  |  |   |       | 
|--------------------------------------- |  | ---------------------------- | ------ | --------- | -------------- | - | ------- | ---------- |  | - | -------- | - |  | --------- | ----- |  |  | - | ----- | 
|                                        |  | 2004 Quarter Ended           |       
|                                        |  |                              |       
|                                        |  | BioMed Realty Trust, Inc.(1) |        |           | Predecessor(2) |  
|                                        |  |                              |        |           |                |  
|                                        |  |                              |        | August 11 |                |   | July 1  |            |  |  
|                                        |  |                              |        | through   |                |   | through |            |  |  
|                                        |  | December 31,                 |        |           | September 30,  |   |         | August 17, |  |   | June 30, |   |  | March 31, |      
|                                        |  |                              |        |           |                |   |         |            |  |   |          |   |  |           |      
|Total revenues                          |  | $                            | 19,670 |           |                | $ | 8,984   |            |  | $ | 278      |   |  | $         | 1,724 |  |  | $ | 1,712 | 
|Income/(loss) before minority interests |  | $                            | 3,146  |           |                | $ | 1,905   |            |  | $ | (261     | ) |  | $         | 631   |  |  | $ | 631   | 
|Minority interests                      |  | $                            | (191   | )         |                | $ | (78     | )          |  | $ |         |   |  |           |      |  |  | $ |      | 
|Net income/ (loss)                      |  | $                            | 2,955  |           |                | $ | 1,827   |            |  | $ | (261     | ) |  | $         | 631   |  |  | $ | 631   | 
|Net income per share  basic            |  | $                            | 0.10   |           |                | $ | 0.06    |            |  | $ |         |   |  |           |      |  |  | $ |      | 
|Net income per share  diluted          |  | $                            | 0.09   |           |                | $ | 0.06    |            |  | $ |         |   |  |           |      |  |  | $ |      | 

|                                         |  |                    |       |  |               |   |       |          |  |   |           |  |  |   |       | 
|---------------------------------------- |  | ------------------ | ----- |  | ------------- | - | ----- | -------- |  | - | --------- |  |  | - | ----- | 
|                                         |  | 2003 Quarter Ended |      
|                                         |  |                    |      
|                                         |  | Predecessor(2)     |      
|                                         |  |                    |      
|                                         |  | December 31,       |       |  | September 30, |   |       | June 30, |  |   | March 31, | 
|                                         |  |                    |       |  |               |   |       |          |  |   |           | 
|Total revenues                           |  | $                  | 1,756 |  |               | $ | 1,755 |          |  | $ | 1,760     |  |  | $ | 1,748 | 
|Net income                               |  | $                  | 564   |  |               | $ | 620   |          |  | $ | 556       |  |  | $ | 594   | 
|Net income per share  basic and diluted |  | $                  |      |  |               | $ |      |          |  | $ |          |  |  | $ |      | 






|    |                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Company commenced operations on August 11, 2004, after
    completing the Offering.                                                 
|   
|(2) | Represents results of the Predecessor prior to completion of the
    Offering and acquisition of the Predecessor on August 17,
    2004.

67



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SCHEDULE III  REAL ESTATE AND ACCUMULATED
DEPRECIATION


As of December 31, 2004


(In thousands)


|                         |  |                     |                |             |           |  |           |          |         |              |              |           |       |        |                                           |  |       |   |        |              |        |   |                |  |        |      |         |     |       |   |     |              |             |   |        |  |        |              |        |  |        |   |         |  |        |   |         |  |      |   |        |   |        |   |         | 
|------------------------ |  | ------------------- | -------------- | ----------- | --------- |  | --------- | -------- | ------- | ------------ | ------------ | --------- | ----- | ------ | ----------------------------------------- |  | ----- | - | ------ | ------------ | ------ | - | -------------- |  | ------ | ---- | ------- | --- | ----- | - | --- | ------------ | ----------- | - | ------ |  | ------ | ------------ | ------ |  | ------ | - | ------- |  | ------ | - | ------- |  | ---- | - | ------ | - | ------ | - | ------- | 
|                         |  |                     |                |             |           |  |           |          |         | Initial Cost |              |           |       |        | Gross amount carried at December 31, 2004 |  |       |   |        |             
|                         |  |                     |                |             |           |  |           |          |         |              |              |           | Costs |        |                                           |  |       |   |        |              |       
|                         |  |                     |                |             |           |  |           |          |         |              |              | Buildings |       |        | Capitalized                               |  |       |   |        | Buildings    |        |   |                |  |        |      |        
|                         |  |                     |                | Year Built/ |           |  | Date      |          |         |              |              |           |       | Ground |                                           |  | and   |   |        | Subsequent   |        |   |                |  | Ground |      |         | and |       |   |     |              | Accumulated |   |        | 
|Property                 |  | Market              |                |             | Renovated |  |           | Acquired |         |              | Encumbrances |           |       | Land   |                                           |  | Lease |   |        | Improvements |        |   | to Acquisition |  |        | Land |         |     | Lease |   |     | Improvements |             |   | Total  |  |        | Depreciation |        |  | Net    |  
|                         |  |                     |                |             |           |  |           |          |         |              |              |           |       |        |                                           |  |       |   |        |              |        |   |                |  |        |      |         |     |       |   |     |              |             |   |        |  |        |              |        |  |        |  
|                         |  |                     |                |             |           |  |           | (1)      |         |              |              |           |       |        |                                           |  |       |   |        |              |        |   |                |  | (2)    |      |         | (3) |       |   |    
|Ardentech Court          |  |                     | San  Francisco |             |           |  | 1997/2001 |          |         |              | 11/18/04     |           |       | $      | 4,828                                     |  |       | $ | 2,742  |              |        | $ |               |  |        | $    | 5,372   |     |       | $ |    |              |             | $ | 2,742  |  |        | $            |       |  |        | $ | 5,372   |  |        | $ | 8,114   |  |      | $ | (17    | ) |        | $ | 8,097   | 
|Balboa Avenue            |  |                     | San Diego      |             |           |  | 1968/2000 |          |         |              | 8/13/04      |           |       |        |                                          |  |       |   | 1,316  |              |        |   |               |  |        |      | 9,493   |     |       |   | 30  |              |             |   | 1,316  |  |        |              |       |  |        |   | 9,523   |  |        |   | 10,839  |  |      |   | (89    | ) |        |   | 10,750  | 
|Bayshore Boulevard       |  |                     | San  Francisco |             |           |  | 2000      |          |         |              | 8/17/04      |           |       |        | 16,438                                    |  |       |   | 3,667  |              |        |   |               |  |        |      | 23,131  |     |       |   |    |              |             |   | 3,667  |  |        |              |       |  |        |   | 23,131  |  |        |   | 26,798  |  |      |   | (217   | ) |        |   | 26,581  | 
|Beckley Street           |  |                     | Maryland       |             |           |  | 1999      |          |         |              | 12/17/04     |           |       |        |                                          |  |       |   | 1,480  |              |        |   |               |  |        |      | 17,572  |     |       |   |    |              |             |   | 1,480  |  |        |              |       |  |        |   | 17,572  |  |        |   | 19,052  |  |      |   | (18    | ) |        |   | 19,034  | 
|Bernardo Center Drive    |  |                     | San Diego      |             |           |  | 1974/1992 |          |         |              | 8/13/04      |           |       |        |                                          |  |       |   | 2,580  |              |        |   |               |  |        |      | 13,714  |     |       |   |    |              |             |   | 2,580  |  |        |              |       |  |        |   | 13,714  |  |        |   | 16,294  |  |      |   | (129   | ) |        |   | 16,165  | 
|Bridgeview               |  |                     | San  Francisco |             |           |  | 1977/1998 |          |         |              | 9/10/04      |           |       |        | 11,825                                    |  |       |   | 1,315  |              |        |   |               |  |        |      | 14,716  |     |       |   |    |              |             |   | 1,315  |  |        |              |       |  |        |   | 14,716  |  |        |   | 16,031  |  |      |   | (107   | ) |        |   | 15,924  | 
|Eisenhower Road          |  |                     | Pennsylvania   |             |           |  | 1973/2000 |          |         |              | 8/13/04      |           |       |        | 2,252                                     |  |       |   | 416    |              |        |   |               |  |        |      | 2,614   |     |       |   |    |              |             |   | 416    |  |        |              |       |  |        |   | 2,614   |  |        |   | 3,030   |  |      |   | (24    | ) |        |   | 3,006   | 
|Elliott Avenue           |  |                     | Seattle        |             |           |  | 1925/2004 |          |         |              | 8/24/04      |           |       |        | 16,996                                    |  |       |   | 10,124 |              |        |   |               |  |        |      | 38,906  |     |       |   |    |              |             |   | 10,124 |  |        |              |       |  |        |   | 38,906  |  |        |   | 49,030  |  |      |   | (365   | ) |        |   | 48,665  | 
|Industrial Road          |  |                     | San  Francisco |             |           |  | 2001      |          |         |              | 8/17/04      |           |       |        |                                          |  |       |   | 12,000 |              |        |   |               |  |        |      | 41,718  |     |       |   |    |              |             |   | 12,000 |  |        |              |       |  |        |   | 41,718  |  |        |   | 53,718  |  |      |   | (391   | ) |        |   | 53,327  | 
|King of Prussia          |  |                     | Pennsylvania   |             |           |  | 1954/2004 |          |         |              | 8/11/04      |           |       |        |                                          |  |       |   | 12,813 |              |        |   |               |  |        |      | 68,231  |     |       |   |    |              |             |   | 12,813 |  |        |              |       |  |        |   | 68,231  |  |        |   | 81,044  |  |      |   | (638   | ) |        |   | 80,406  | 
|Landmark at Eastview     |  | New York/New Jersey |                |             | 1958/1999 |  |           |          | 8/12/04 |              |              |           |      |        |                                           |  |      |   |        |              | 14,210 |   |                |  | 61,996 |      |         |     | 260   |   |     |              |            |   |        |  | 14,217 |              |        |  | 62,249 |   |         |  | 76,466 |   |         |  | (635 | ) |        |   | 75,831 |  
|Monte Villa Parkway      |  |                     | Seattle        |             |           |  | 1996/2002 |          |         |              | 8/17/04      |           |       |        | 10,007                                    |  |       |   | 1,020  |              |        |   |               |  |        |      | 10,711  |     |       |   |    |              |             |   | 1,020  |  |        |              |       |  |        |   | 10,711  |  |        |   | 11,731  |  |      |   | (100   | ) |        |   | 11,631  | 
|San Diego Science Center |  |                     | San Diego      |             |           |  | 1973/2002 |          |         |              | 10/21/04     |           |       |        |                                          |  |       |   | 3,872  |              |        |   |               |  |        |      | 21,874  |     |       |   |    |              |             |   | 3,872  |  |        |              |       |  |        |   | 21,874  |  |        |   | 25,746  |  |      |   | (114   | ) |        |   | 25,632  | 
|Science Center Drive     |  |                     | San Diego      |             |           |  | 1995      |          |         |              | 9/24/04      |           |       |        | 11,699                                    |  |       |   | 2,630  |              |        |   |               |  |        |      | 16,365  |     |       |   |    |              |             |   | 2,630  |  |        |              |       |  |        |   | 16,365  |  |        |   | 18,995  |  |      |   | (119   | ) |        |   | 18,876  | 
|Towne Centre Drive       |  |                     | San Diego      |             |           |  | 2001      |          |         |              | 8/12/04      |           |       |        | 22,856                                    |  |       |   | 10,720 |              |        |   |               |  |        |      | 31,504  |     |       |   |    |              |             |   | 10,720 |  |        |              |       |  |        |   | 31,504  |  |        |   | 42,224  |  |      |   | (295   | ) |        |   | 41,929  | 
|Tributary Street         |  |                     | Maryland       |             |           |  | 1983/1998 |          |         |              | 12/17/04     |           |       |        |                                          |  |       |   | 2,060  |              |        |   |               |  |        |      | 10,585  |     |       |   |    |              |             |   | 2,060  |  |        |              |       |  |        |   | 10,585  |  |        |   | 12,645  |  |      |   | (11    | ) |        |   | 12,634  | 
|                         |  |                     |                |             |           |  |           |          |         |              |              |           |       |        |                                           |  |       |   |        |              |        |   |                |  |        |      |         |     |       |   |     |              |             |   |        |  |        |              |        |  |        |  
|Total                    |  |                     |                |             |           |  |           |          |         |              |              |           |       | $      | 96,901                                    |  |       | $ | 68,755 |              |        | $ | 14,210         |  |        | $    | 388,502 |     |       | $ | 290 |              |             | $ | 68,755 |  |        | $            | 14,217 |  |        | $ | 388,785 |  |        | $ | 471,757 |  |      | $ | (3,269 | ) |        | $ | 468,488 | 
|                         |  |                     |                |             |           |  |           |          |         |              |              |           |       |        |                                           |  |       |   |        |              |        |   |                |  |        |      |         |     |       |   |     |              |             |   |        |  |        |              |        |  |        |  






|    |                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes unamortized debt premium of $5,335.                                                                                                                                                
|   
|(2) | The aggregate gross cost of the Companys rental property
    for federal income tax purposes approximated $512,459 as of
    December 31, 2004 (unaudited).                                
|   
|(3) | Depreciation of the ground lease and building and improvements
    are recorded on a straight-line basis over the estimated useful
    lives ranging from the life of the lease to 40 years.



68



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SCHEDULE III  REAL ESTATE AND ACCUMULATED
DEPRECIATION


As of December 31, 2004


(In thousands)




|                                    |  |                |         |   |                |   |        |              |  |   |              |   |  |   |        |  
|----------------------------------- |  | -------------- | ------- | - | -------------- | - | ------ | ------------ |  | - | ------------ | - |  | - | ------ | -
|                                    |  | BioMed Realty  |         |   |               
|                                    |  | Trust, Inc.(1) |         |   | Predecessor(1) |  
|                                    |  |                |         |   |                |  
|                                    |  | August 11      |         |   | January 1      |   |        |             
|                                    |  | thru           |         |   | thru           |   |        |             
|                                    |  | December 31,   |         |   | August 17,     |   |        | December 31, |  |   | December 31, |  
|                                    |  | 2004           |         |   | 2004           |   |        | 2003         |  |   | 2002         |  
|                                    |  |                |         |   |                |   |        |              |  |   |              |  
|Rental Property:                    |  |                |         |   |                |   |        |              |  |   |              |   |  |   |        |  
|Balance at beginning of period/year |  | $              |        |   |                | $ | 49,588 |              |  | $ | 49,483       |   |  | $ | 49,324 |  
|Property acquisitions               |  |                | 471,467 |   |                |   |       |              |  |   |             |   |  |   |       |  
|Improvements                        |  |                | 290     |   |                |   |       |              |  |   | 105          |   |  |   | 159    |  
|                                    |  |                |         |   |                |   |        |              |  |   |              |  
|Balance at end of period/year       |  | $              | 471,757 |   |                | $ | 49,588 |              |  | $ | 49,588       |   |  | $ | 49,483 |  
|                                    |  |                |         |   |                |   |        |              |  |   |              |  
|Accumulated Depreciation:           |  |                |         |   |                |   |        |              |  |   |              |   |  |   |        |  
|Balance at beginning of period/year |  | $              |        |   |                | $ | (2,563 | )            |  | $ | (1,630       | ) |  | $ | (697   | )
|Depreciation expense                |  |                | (3,269  | ) |                |   | (586   | )            |  |   | (933         | ) |  |   | (933   | )
|                                    |  |                |         |   |                |   |        |              |  |   |              |  
|Balance at end of period/year       |  | $              | (3,269  | ) |                | $ | (3,149 | )            |  | $ | (2,563       | ) |  | $ | (1,630 | )
|                                    |  |                |         |   |                |   |        |              |  |   |              |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | BioMed Realty Trust, Inc. commenced operations on
    August 11, 2004 after completion of our Offering.
    Industrial Road is the largest of the properties acquired in the
    Offering and therefore has been identified as the accounting
    acquirer, or Predecessor, pursuant to paragraph 17 of
    SFAS 141. As such, the information presented herein for our
    Predecessor were prepared on a stand-alone basis up to and
    including the acquisition date, August 17, 2004. Upon
    completion of the Offering, the interest in the Predecessor
    acquired from affiliates was recorded at historic cost. The
    acquisitions of the unaffiliated interests in the Predecessor
    and the interests in all of the other properties have been
    accounted for as a purchase in accordance with SFAS 141.



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##### Table of Contents








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures






Changes in Internal Control Over Financial Reporting









|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant







70



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##### Table of Contents










|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters








|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services



71



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##### Table of Contents






PART IV







|        |                                           
|------- | ------------------------------------------
|Item 15 | Exhibits and Financial Statement Schedules



|    |                                                      
|--- | -----------------------------------------------------
|(a) | Financial Statements and Financial Statement Schedule



|                                                                                                                                                                                                                                                                                                                                                                   |  |      |    | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---- | -- | 
|                                                                                                                                                                                                                                                                                                                                                                   |  | Page |   
|                                                                                                                                                                                                                                                                                                                                                                   |  |      |   
|Report of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                            |  |      | 46 | 
|Consolidated Balance Sheet for BioMed Realty Trust, Inc. as of
    December 31, 2004 and Balance Sheet for Inhale 201
    Industrial Road, L.P. (Predecessor) as of December 31, 2003                                                                                                                                                                              |  |      | 47 | 
|Consolidated Statement of Income for BioMed Realty Trust, Inc.
    for the period from August 11, 2004 through
    December 31, 2004, and Statement of Income for Inhale 201
    Industrial Road, L.P. (Predecessor) for the period from
    January 1, 2004 through August 17, 2004 and for the
    years ended December 31, 2003 and 2002                        |  |      | 48 | 
|Consolidated Statement of Stockholders Equity for BioMed
    Realty Trust, Inc. for the period from August 11, 2004
    through December 31, 2004, and Statements of Owners
    Equity for Inhale 201 Industrial Road, L.P. (Predecessor) for
    the period from January 1, 2004 through August 17,
    2004 and for the years ended December 31, 2003 and 2002 |  |      | 49 | 
|Consolidated and Combined Statements of Cash Flows for BioMed
    Realty Trust, Inc. and Inhale 201 Industrial Road, L.P.
    (Predecessor) for the year ended December 31, 2004 and
    Statements of Cash Flows for Inhale 201 Industrial Road, L.P.
    (Predecessor) for the years ended December 31, 2003 and 2002                                            |  |      | 50 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                         |  |      | 52 | 
|Financial Statement  Schedule III                                                                                                                                                                                                                                                                                                                                 |  |      | 68 | 



|    |         
|--- | --------
|(b) | Exhibits

|        |    |    |             |                                                                                                                                
|------- | -- | -- | ----------- | -------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |    |            
|Number  |    |    | Description
|        |    |    |            
|        | 3  | .1 |             | Articles of Amendment and Restatement of BioMed Realty Trust,
    Inc.(1)                                                      
|        | 3  | .2 |             | Amended and Restated Bylaws of BioMed Realty Trust, Inc.(1)                                                                    
|        | 4  | .1 |             | Form of Certificate for Common Stock of BioMed Realty Trust,
    Inc.(2)                                                       
|        | 10 | .1 |             | Second Amended and Restated Agreement of Limited Partnership of
    BioMed Realty, L.P. dated as of August 13, 2004.(1)        
|        | 10 | .2 |             | Registration Rights Agreement dated as of August 13, 2004
    among BioMed Realty Trust, Inc. and the persons named therein.(1)
|        | 10 | .3 |             | 2004 Incentive Award Plan.(1)                                                                                                  
|        | 10 | .4 |             | Form of Restricted Stock Award Agreement under the 2004
    Incentive Award Plan.(3)                                           
|        | 10 | .5 |             | Form of Indemnification Agreement between BioMed Realty Trust,
    Inc. and each of its directors and officers.(2)             
|        | 10 | .6 |             | Employment Agreement between BioMed Realty Trust, Inc. and Alan
    D. Gold dated as of August 6, 2004.(1)                     
|        | 10 | .7 |             | Employment Agreement between BioMed Realty Trust, Inc. and Gary
    A. Kreitzer dated as of August 6, 2004.(1)                 
|        | 10 | .8 |             | Employment Agreement between BioMed Realty Trust, Inc. and John
    F. Wilson, II dated as of August 6, 2004.(1)               

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|        |    |     |             |                                                                                                                                                                                                                                      
|------- | -- | --- | ----------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |            
|Number  |    |     | Description
|        |    |     |            
|        | 10 | .9  |             | Employment Agreement between BioMed Realty Trust, Inc. and
    Matthew G. McDevitt dated as of August 6, 2004.(1)                                                                                                                    
|        | 10 | .10 |             | Contribution Agreement between Alan D. Gold and BioMed Realty,
    L.P. dated as of May 4, 2004.(2)                                                                                                                                  
|        | 10 | .11 |             | Contribution Agreement between Gary A. Kreitzer and BioMed
    Realty, L.P. dated as of May 4, 2004.(2)                                                                                                                              
|        | 10 | .12 |             | Contribution Agreement between John F. Wilson, II and
    BioMed Realty, L.P. dated as of May 4, 2004.(2)                                                                                                                            
|        | 10 | .13 |             | Contribution Agreement between Matthew G. McDevitt and BioMed
    Realty, L.P. dated as of May 4, 2004.(2)                                                                                                                           
|        | 10 | .14 |             | Form of Contribution Agreement between the additional
    contributors and BioMed Realty, L.P. dated as of May 4,
    2004.(2)                                                                                                       
|        | 10 | .15 |             | Agreement to Enter Lease of Real Property between Eastview
    Holdings LLC and BMR-Landmark at Eastview LLC dated as of
    June 21, 2004.(2)                                                                                       
|        | 10 | .16 |             | First Amendment to Agreement to Enter Lease of Real Property
    between Eastview Holdings LLC and BMR-Landmark at Eastview LLC
    dated as of June 23, 2004.(2)                                                                    
|        | 10 | .17 |             | Agreement of Purchase and Sale for Partnership Interests
    among Radnor Properties Associates-II, L.P., Radnor GP-145 KOP,
    L.L.C., BMR-145 King of Prussia Road GP LLC and BioMed Realty
    L.P. dated as of June 24, 2004.(2)
|        | 10 | .18 |             | Purchase and Sale Agreement and Escrow Instructions among
    F&S Hayward, Inc., Foster Enterprises, Syme Family Partners
    L.P. and BMR-Bridgeview Technology Park LLC dated as of
    June 10, 2004.(2)                          
|        | 10 | .19 |             | Purchase Agreement among Douglas P. Wilson, BMR-Bayshore
    Boulevard LLC, GAL-Brisbane L.P., Brisbane Tech LLC and Roger C.
    Stuhlmuller dated as of May 24, 2004.(2)                                                           
|        | 10 | .20 |             | Amendment to Purchase Agreement among Douglas P. Wilson,
    BMR-Bayshore Boulevard LLC, GAL-Brisbane L.P., Brisbane Tech LLC
    and Roger C. Stuhlmuller dated as of June 16, 2004.(2)                                             
|        | 10 | .21 |             | Agreement of Purchase and Sale between Elliott Park LLC and
    BMR-201 Elliott Avenue LLC dated as of June 3, 2004.(2)                                                                                                              
|        | 10 | .22 |             | Purchase and Sale Agreement and Escrow Instructions between
    Illumina, Inc. and BMR-9885 Towne Centre Drive LLC dated as of
    June 18, 2004.(2)                                                                                 
|        | 10 | .23 |             | Purchase and Sale Agreement and Escrow Instructions among
    Phase 3 Science Center LLC, Ahwatukee Hills Investors, LLC,
    J. Alexanders LLC and BMR-3450 Monte Villa Parkway LLC
    dated as of June 2, 2004.(2)               
|        | 10 | .24 |             | Radnor Technology and Research Center Lease between Radnor
    Properties-145 KOP, L.P. and Centocor, Inc. dated as of
    March 8, 2002.(2)                                                                                         
|        | 10 | .25 |             | First Amendment to Radnor Technology and Research Center Lease
    between Radnor Properties-145 KOP, L.P. and Centocor, Inc. dated
    as of June 21, 2002.(2)                                                                      
|        | 10 | .26 |             | Second Amendment to Radnor Technology and Research Center Lease
    between Radnor Properties-145 KOP, L.P. and Centocor, Inc. dated
    as of March 3, 2003.(2)                                                                     
|        | 10 | .27 |             | Third Amendment to Radnor Technology and Research Center Lease
    between Radnor Properties-145 KOP, L.P. and Centocor, Inc. dated
    as of January 19, 2004.(2)                                                                   
|        | 10 | .28 |             | Redemption Agreement among Nektar Therapeutics (formerly known
    as Inhale Therapeutic Systems, Inc.), SciMed Prop III,
    Inc., 201 Industrial Partnership and Inhale 201 Industrial Road,
    L.P. dated as of June 23, 2004.(2)
|        | 10 | .29 |             | Amended and Restated Build-to-Suit Lease between Inhale 201
    Industrial Road, L.P. and Nektar Therapeutics (formerly known as
    Inhale Therapeutic Systems, Inc.).(1)                                                           

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|        |    |     |             |                                                                                                                                                                                                                                                                                                                                                                                          
|------- | -- | --- | ----------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |     |            
|Number  |    |     | Description
|        |    |     |            
|        | 10 | .30 |             | Amendment to Amended and Restated Built-to-Suit Lease dated as
    of January 11, 2005 between BMR-201 Industrial Road LLC and
    Nektar Therapeutics.(3)                                                                                                                                                                                                                               
|        | 10 | .31 |             | Revolving Loan Agreement dated as of August 11, 2004 by and
    among BioMed Realty Trust, Inc., BioMed Realty, L.P., the other
    borrowers and lenders party thereto, U.S. Bank National
    Association, as Administrative Agent, Lead Arranger and Swing
    Loan Bank, Keybank National Association, as Syndication
    Agent, and Royal Bank of Canada, as Documentation Agent.(1)
|        | 10 | .32 |             | Master Loan Agreement dated December 28, 2004 between
    BMR-Bayshore Boulevard LLC, BMR-3450 Monte Villa Parkway LLC and
    BMR-9885 Towne Centre Drive LLC, and The Northwestern Mutual
    Life Insurance Company.(4)                                                                                                                                                               
|        | 10 | .33 |             | Deed of Trust and Security Agreement (First Priority) dated
    December 28, 2004 by BMR-Bayshore Boulevard LLC in favor of
    The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                       
|        | 10 | .34 |             | Deed of Trust and Security Agreement (First Priority) dated
    December 28, 2004 by BMR-3450 Monte Villa Parkway LLC in
    favor of The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                 
|        | 10 | .35 |             | Deed of Trust and Security Agreement (First Priority) dated
    December 28, 2004 by BMR-9885 Towne Centre Drive LLC in
    favor of The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                  
|        | 10 | .36 |             | Deed of Trust and Security Agreement (Second Priority) dated
    December 28, 2004 by BMR-Bayshore Boulevard LLC in favor of
    The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                      
|        | 10 | .37 |             | Deed of Trust and Security Agreement (Second Priority) dated
    December 28, 2004 by BMR-3450 Monte Villa Parkway LLC in
    favor of The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                
|        | 10 | .38 |             | Deed of Trust and Security Agreement (Second Priority) dated
    December 28, 2004 by BMR-9885 Towne Centre Drive LLC in
    favor of The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                 
|        | 10 | .39 |             | Fraudulent Conveyance Indemnity Agreement dated
    December 28, 2004 by BioMed Realty Trust, Inc. in favor of
    The Northwestern Mutual Life Insurance Company.(4)                                                                                                                                                                                                                    
|        | 10 | .40 |             | BioMed Realty 401(k) Retirement Savings Plan.(3)                                                                                                                                                                                                                                                                                                                                         
|        | 10 | .41 |             | First Amendment to the BioMed Realty 401(k) Retirement Savings
    Plan.(3)                                                                                                                                                                                                                                                                                                              
|        | 10 | .42 |             | Second Amendment to the BioMed Realty 401(k) Retirement Savings
    Plan.(3)                                                                                                                                                                                                                                                                                                             
|        | 21 | .1  |             | List of Subsidiaries of BioMed Realty Trust, Inc.(5)                                                                                                                                                                                                                                                                                                                                     
|        | 23 | .1  |             | Consent of KPMG LLP.(5)                                                                                                                                                                                                                                                                                                                                                                  
|        | 31 | .1  |             | Certification of Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.(5)                                                                                                                                                                                                                                                                               
|        | 31 | .2  |             | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.(5)                                                                                                                                                                                                                                                                               
|        | 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.(5)                                                                                                                                                                                           






|    |                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Quarterly Report on Form 10-Q filed with the
    Securities and Exchange Commission on September 20, 2004.                                      
|   
|(2) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Registration Statement of Form S-11, as amended
    (File No. 333-115204), filed with the Securities and
    Exchange Commission on May 5, 2004.
|   
|(3) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Current Report on Form 8-K filed with the
    Securities and Exchange Commission on January 14, 2005.                                           
|   
|(4) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Current Report on Form 8-K filed with the
    Securities and Exchange Commission on January 4, 2005.                                            
|   
|(5) | Filed herewith.                                                                                                                                                                                                    

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SIGNATURES






| |                                             
| | --------------------------------------------
| | BioMed Realty Trust, Inc.                   
|
| | /s/ Alan D. Gold                            
| |                                             
| | Alan D. Gold                                
| | Chairman of the Board, President and        
| | Chief Executive Officer                     
| | (Principal Executive Officer)               
|
| | /s/ John F. Wilson, II                      
| |                                             
| | John F. Wilson, II                          
| | Chief Financial Officer                     
| | (Principal Financial and Accounting Officer)





|                                           |  |                                                                   |  |      |                |  |  | 
|------------------------------------------ |  | ----------------------------------------------------------------- |  | ---- | -------------- |  |  | 
|Signature                                  |  | Title                                                             |  | Date |               
|                                           |  |                                                                   |  |      |               
|                                          
|/s/ Barbara R. CambonBarbara
    R. Cambon |  | Director                                                          |  |      | March 29, 2005 | 
|                                          
|/s/ Edward A. DennisEdward
    A. Dennis   |  | Director                                                          |  |      | March 29, 2005 | 
|                                          
|/s/ Gary A. KreitzerGary
    A. Kreitzer   |  | Executive Vice President, General Counsel, Secretary and Director |  |      | March 29, 2005 | 
|                                          
|/s/ Mark J. RiedyMark
    J. Riedy         |  | Director                                                          |  |      | March 29, 2005 | 
|                                          
|/s/ Theodore D. RothTheodore
    D. Roth   |  | Director                                                          |  |      | March 29, 2005 | 
|                                          
|/s/ M. Faye WilsonM.
    Faye Wilson       |  | Director                                                          |  |      | March 29, 2005 | 

75