##### Table of Contents









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, 2005


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


o þ


þ o


S-K 10-K 10-K. þ


12b-2


þ o o


12b-2 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, 2005


TABLE OF CONTENTS


|              |  |                                                                                                                      |  |      |    | 
|------------- |  | -------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|              |  |                                                                                                                      |  | Page |   
|              |  |                                                                                                                      |  |      |   
|PART I       
|Item 1        |  | Business                                                                                                             |  |      | 1  | 
|Item 1A       |  | Risk Factors                                                                                                         |  |      | 8  | 
|Item 1B       |  | Unresolved Staff Comments                                                                                            |  |      | 25 | 
|Item 2        |  | Properties                                                                                                           |  |      | 25 | 
|Item 3        |  | Legal Proceedings                                                                                                    |  |      | 29 | 
|Item 4        |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |      | 29 | 
|PART II      
|Item 5        |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |      | 30 | 
|Item 6        |  | Selected Financial Data                                                                                              |  |      | 30 | 
|Item 7        |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |      | 32 | 
|Item 7A       |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  |      | 47 | 
|Item 8        |  | Financial Statements and Supplementary
    Data                                                                      |  |      | 48 | 
|Item 9        |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |      | 83 | 
|Item 9A       |  | Controls and Procedures                                                                                              |  |      | 83 | 
|Item 9B       |  | Other Information                                                                                                    |  |      | 84 | 
|             
|PART III     
|Item 10       |  | Directors and Executive Officers of the
    Registrant                                                               |  |      | 84 | 
|Item 11       |  | Executive Compensation                                                                                               |  |      | 84 | 
|Item 12       |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |  |      | 84 | 
|Item 13       |  | Certain Relationships and Related
    Transactions                                                                   |  |      | 85 | 
|Item 14       |  | Principal Accountant Fees and Services                                                                               |  |      | 85 | 
|             
|PART IV      
|Item 15       |  | Exhibits and Financial Statement
    Schedules                                                                       |  |      | 85 | 
|EXHIBIT 10.10
|EXHIBIT 10.16
|EXHIBIT 10.45
|EXHIBIT 10.46
|EXHIBIT 10.68
|EXHIBIT 21.1 
|EXHIBIT 23.1 
|EXHIBIT 31.1 
|EXHIBIT 31.2 
|EXHIBIT 32.1 





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PART I







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

Forward-Looking Statements






| |   |                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------
| |  | adverse economic or real estate developments in the life science
    industry or the Boston or California regions,   
|
| |  | 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 and
    operations,                                          
|
| |  | our failure to maintain our status as a real estate investment
    trust, or REIT,                                   
|
| |  | government approvals, actions and initiatives, including the
    need for compliance with environmental requirements,
|
| |  | financial market fluctuations, and                                                                                   
|
| |  | changes in real estate and zoning laws and increases in real
    property tax rates.                                 



General




1



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10-K, 10-Q, 8-K


2005 Highlights






2



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Subsequent Events






Growth Strategy








| |   |                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | an ability to capitalize on managements extensive
    acquisition expertise and extensive industry relationships among
    life science tenants, property owners and real estate brokers,

3



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| |   |                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.                                                      





| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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 warehouse 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.      

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
    Pharmaceutical Research and Manufacturers of America (PhRMA)
    survey indicating that research and development spending by its
    members climbed to a record $39.4 billion in 2005 from
    $37 billion in the prior year, and when combined with
    non-member companies, totaled a record $51.3 billion in
    2005, 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.                                                                                                                                                                                                                                                                                                   



Experienced Management




4



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Regulation




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





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





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

clean-up clean-up clean-up




5



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Insurance




6



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Competition






| |   |                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our expertise in understanding the real estate needs of life
    science industry tenants,                                                                              
|
| |  | our ability to identify, acquire and develop 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




7



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|         |             
|-------- | ------------
|Item 1A. | 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.                                                                                                                                                                                                                                                                                                                                                                                                          



8



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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 Boston and
California makes our business particularly vulnerable to adverse
conditions affecting these markets.




9



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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 a 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.




10



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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.




11



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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 and may
have a negative impact on our business.




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




12



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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.






| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | local oversupply, increased competition or reduced demand for
    life science office and laboratory space,
|
| |  | inability to collect rent from tenants,                                                                    

13



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| |   |                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.




14



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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.                                    



15



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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.




16



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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 executive officers and directors beneficially own 6.2%
of our common stock and exercise substantial influence over our
business and, as a result, they 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.


17



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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 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.


debt-to


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 facilities include 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 have and may continue to 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.




20



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If we fail to 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,                                                                 
|
| |  | with respect to acquisition financing, the markets
    perception of the value of the properties to be acquired,
|
| |  | 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.




21



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| |   |                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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,                   
|
| |  | 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% 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.                                                                              



22



---



##### Table of Contents



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




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,                                                 

23



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##### Table of Contents





| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | adverse market reaction to any additional debt we incur or
    acquisitions we make in the future,
|
| |  | additions or departures of key management personnel,                                              
|
| |  | actions by institutional stockholders,                                                            
|
| |  | speculation in the press or investment community,                                                 
|
| |  | 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.


S-3


24



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##### Table of Contents









| |   |                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.                                                                                                    










|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








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

Existing Portfolio






|                           |  |            |    |  |          |         |           |          |  |                |         |   |            |            |            |            |           |   |            |             |  |  |       |   |  |   |       | 
|-------------------------- |  | ---------- | -- |  | -------- | ------- | --------- | -------- |  | -------------- | ------- | - | ---------- | ---------- | ---------- | ---------- | --------- | - | ---------- | ----------- |  |  | ----- | - |  | - | ----- | 
|                           |  |            |    |  |          | Percent |           |          |  |                |         |   |            |            | Annualized |           
|                           |  |            |    |  |          | of      |           |          |  |                |         |   | Percent of |            |            | Base Rent  |          
|                           |  | Number     |    |  | Rentable |         |           | Rentable |  |                |         |   | Annualized |            |            | Annualized |           |   | per Leased |            
|                           |  | of         |    |  | Square   |         |           | Square   |  |                | Percent |   |            | Base Rent  |            |            | Base Rent |   |            | Square Foot | 
|Market                     |  | Properties |    |  | Feet     |         |           | Feet     |  |                | Leased  |   |            | Current(1) |            |            | Current   |   |            | Current     | 
|                           |  |            |    |  |          |         |           |          |  |                |         |   |            |            |            |            |           |   |            |             | 
|                           |  |            |    |  |          |         |           |          |  | (In thousands) |         |   |            |            |           
|Boston(2)                  |  |            | 10 |  |          |         | 1,249,874 |          |  |                | 26.3    | % |            |            | 97.1       | %          |           | $ | 47,197     |             |  |  | 39.6  | % |  | $ | 38.89 | 
|San Francisco              |  |            | 7  |  |          |         | 955,593   |          |  |                | 20.1    | % |            |            | 80.7       | %          |           |   | 16,596     |             |  |  | 14.0  | % |  |   | 21.52 | 
|San Diego(3)               |  |            | 9  |  |          |         | 565,364   |          |  |                | 11.9    | % |            |            | 87.9       | %          |           |   | 15,102     |             |  |  | 12.7  | % |  |   | 30.39 | 
|New York/ New Jersey       |  |            | 2  |  |          |         | 823,948   |          |  |                | 17.3    | % |            |            | 90.1       | %          |           |   | 14,710     |             |  |  | 12.4  | % |  |   | 19.81 | 
|Pennsylvania               |  |            | 5  |  |          |         | 690,580   |          |  |                | 14.5    | % |            |            | 92.4       | %          |           |   | 13,217     |             |  |  | 11.1  | % |  |   | 20.72 | 
|Seattle                    |  |            | 2  |  |          |         | 185,989   |          |  |                | 3.9     | % |            |            | 100.0      | %          |           |   | 6,946      |             |  |  | 5.8   | % |  |   | 37.34 | 
|Maryland                   |  |            | 2  |  |          |         | 168,817   |          |  |                | 3.6     | % |            |            | 100.0      | %          |           |   | 2,704      |             |  |  | 2.3   | % |  |   | 16.02 | 
|University Related  Other |  |            | 2  |  |          |         | 115,150   |          |  |                | 2.4     | % |            |            | 100.0      | %          |           |   | 2,448      |             |  |  | 2.1   | % |  |   | 21.26 | 
|                           |  |            |    |  |          |         |           |          |  |                |         |   |            |            |            |            |           |   |            |             | 
|Total/ Weighted Average    |  |            | 39 |  |          |         | 4,755,315 |          |  |                | 100.0   | % |            |            | 91.1       | %          |           | $ | 118,920    |             |  |  | 100.0 | % |  | $ | 27.45 | 
|                           |  |            |    |  |          |         |           |          |  |                |         |   |            |            |            |            |           |   |            |             | 

25



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##### Table of Contents








|    |                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In this and other tables, annualized current base rent is the
    monthly contractual rent under existing leases at
    December 31, 2005, 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) | Excludes parking revenue of $1,063,000 for 47 Erie Street
    Parking Structure.                                                                                                                                                                                                                                                                                                                               
|   
|(3) | Includes the McKellar Court property, consisting of
    72,863 square feet. We own the general partnership interest
    in the unconsolidated limited partnership that owns the McKellar
    Court property, which entitles us to 75% of the gains upon a
    sale of the property and 21% of the operating cash flows.                                                                                        



|                                    |  |             |            |  |         |  |       |  
|----------------------------------- |  | ----------- | ---------- |  | ------- |  | ----- | -
|                                    |  | Rentable    |            |  | Percent | 
|                                    |  | Square Feet |            |  | Leased  | 
|                                    |  |             |            |  |         | 
|Boston                              |  |             |            |  |         |  |       |  
|Albany Street                       |  |             | 75,003     |  |         |  | 100.0 | %
|Coolidge Avenue                     |  |             | 37,400     |  |         |  | 100.0 | %
|21 Erie Street                      |  |             | 49,247     |  |         |  | 56.9  | %
|40 Erie Street                      |  |             | 100,854    |  |         |  | 100.0 | %
|Fresh Pond Research Park            |  |             | 90,702     |  |         |  | 100.0 | %
|Kendall Square A                    |  |             | 302,919    |  |         |  | 96.7  | %
|Kendall Square D                    |  |             | 349,325    |  |         |  | 98.5  | %
|Sidney Street                       |  |             | 191,904    |  |         |  | 100.0 | %
|Vassar Street                       |  |             | 52,520     |  |         |  | 100.0 | %
|47 Erie Street Parking Structure    |  |             | 447 Stalls |  |         |  | 100.0 | %
|San Francisco                       |  |             |            |  |         |  |       |  
|Ardentech Court                     |  |             | 55,588     |  |         |  | 100.0 | %
|Bayshore Boulevard                  |  |             | 183,344    |  |         |  | 100.0 | %
|Bridgeview Technology Park I and II |  |             | 263,073    |  |         |  | 73.9  | %
|Dumbarton Circle                    |  |             | 44,000     |  |         |  | 100.0 | %
|Eccles Avenue                       |  |             | 152,145    |  |         |  | 100.0 | %
|Industrial Road                     |  |             | 169,490    |  |         |  | 83.6  | %
|Kaiser Drive(1)                     |  |             | 87,953     |  |         |  | 0.0   | %
|San Diego                           |  |             |            |  |         |  |       |  
|Balboa Avenue                       |  |             | 35,344     |  |         |  | 100.0 | %
|Bernardo Center Drive               |  |             | 61,286     |  |         |  | 100.0 | %
|Faraday Avenue                      |  |             | 28,704     |  |         |  | 100.0 | %
|McKellar Court(2)                   |  |             | 72,863     |  |         |  | 100.0 | %
|Nancy Ridge Drive                   |  |             | 42,138     |  |         |  | 67.4  | %
|Bunker Hill Street                  |  |             | 105,364    |  |         |  | 69.0  | %
|Science Center Drive                |  |             | 53,740     |  |         |  | 100.0 | %
|Towne Centre Drive                  |  |             | 115,870    |  |         |  | 100.0 | %
|Waples Street(3)                    |  |             | 50,055     |  |         |  | 56.1  | %
|New York/ New Jersey                |  |             |            |  |         |  |       |  
|Graphics Drive                      |  |             | 72,300     |  |         |  | 44.3  | %
|Landmark at Eastview(4)             |  |             | 751,648    |  |         |  | 94.5  | %

26



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##### Table of Contents



|                           |  |             |           |  |         |  |       |  
|-------------------------- |  | ----------- | --------- |  | ------- |  | ----- | -
|                           |  | Rentable    |           |  | Percent | 
|                           |  | Square Feet |           |  | Leased  | 
|                           |  |             |           |  |         | 
|Pennsylvania               |  |             |           |  |         |  |       |  
|Eisenhower Road            |  |             | 27,750    |  |         |  | 100.0 | %
|George Patterson Boulevard |  |             | 71,500    |  |         |  | 100.0 | %
|King of Prussia(5)         |  |             | 427,109   |  |         |  | 100.0 | %
|Phoenixville Pike          |  |             | 104,400   |  |         |  | 49.6  | %
|1000 Uniqema Boulevard(6)  |  |             | 59,821    |  |         |  | 100.0 | %
|Seattle                    |  |             |           |  |         |  |       |  
|Elliott Avenue             |  |             | 134,989   |  |         |  | 100.0 | %
|Monte Villa Parkway        |  |             | 51,000    |  |         |  | 100.0 | %
|Maryland                   |  |             |           |  |         |  |       |  
|Beckley Street             |  |             | 77,225    |  |         |  | 100.0 | %
|Tributary Street           |  |             | 91,592    |  |         |  | 100.0 | %
|University Related  Other |  |             |           |  |         |  |       |  
|Colorow Drive(7)           |  |             | 93,650    |  |         |  | 100.0 | %
|Lucent Drive(8)            |  |             | 21,500    |  |         |  | 100.0 | %
|                           |  |             |           |  |         | 
|Total/ Weighted Average    |  |             | 4,755,315 |  |         |  | 91.1  | %
|                           |  |             |           |  |         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The entire property was undergoing redevelopment at
    December 31, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(2) | We own the general partnership interest in the limited
    partnership that owns the McKellar Court property, which
    entitles us to 75% of the gains upon a sale of the property and
    21% of the operating cash flows.                                                                                                                                                                                                                                                                   
|   
|(3) | We own 70% of the limited liability company that owns the Waples
    Street property, which entitles us to 90% of the cash flow from
    operations up to a 9.5% cumulative annual return, and then 75%
    of such distributions thereafter. The other member of the
    limited liability company has the right to put its interest to
    us at fair value after completion of the initial improvements,
    and can require us to issue partnership units as payment for
    such interest.
|   
|(4) | We own a leasehold interest in the property through a
    99-year ground lease,
    which will convert into a fee simple interest upon the
    completion of certain property subdivisions.                                                                                                                                                                                                                                                                                                    
|   
|(5) | We own an 88.5% limited partnership interest and a 0.5% general
    partnership interest in the limited partnership that owns this
    property.                                                                                                                                                                                                                                                                                                                                               
|   
|(6) | Located in New Castle, Delaware.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(7) | Located in Salt Lake City, Utah. We own a leasehold interest in
    the property through a ground lease that expires in December
    2043, subject to our option to renew the ground lease for one
    additional ten-year period.                                                                                                                                                                                                                                                             
|   
|(8) | Located in Lebanon, New Hampshire.                                                                                                                                                                                                                                                                                                                                                                                                                                                             

27



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##### Table of Contents



Tenant Information




|                                   |  |             |           |                |           |            |            |             |            |           |               |  |       |            |      |   |  |  |                   |    
|---------------------------------- |  | ----------- | --------- | -------------- | --------- | ---------- | ---------- | ----------- | ---------- | --------- | ------------- |  | ----- | ---------- | ---- | - |  |  | ----------------- | ---
|                                   |  |             |           |                |           | Annualized |            |             | Percent    |           |               | 
|                                   |  |             |           |                |           | Base Rent  |            |             | Annualized |           |               | 
|                                   |  |             |           | Annualized     |           |            | per Leased |             |            | Base Rent |               |  | Lease |           
|                                   |  | Leased      |           |                | Base Rent |            |            | Square Feet |            |           | Current Total |  |       | Expiration |     
|Tenant                             |  | Square Feet |           |                | Current   |            |            | Current     |            |           | Portfolio     |  |       | Date(s)    |     
|                                   |  |             |           |                |           |            |            |             |            |           |               |  |       |            |     
|                                   |  |             |           | (In thousands) |           |            |            |             |            |           |              
|Vertex Pharmaceuticals             |  |             | 583,474   |                |           | $          | 23,660     |             |            | $         | 40.55         |  |       |            | 19.9 | % |  |  | April 2018        | (1)
|Genzyme Corporation                |  |             | 343,000   |                |           |            | 15,399     |             |            |           | 44.89         |  |       |            | 12.9 | % |  |  | July 2018         |    
|Centocor, Inc. (Johnson & Johnson) |  |             | 331,398   |                |           |            | 7,839      |             |            |           | 23.65         |  |       |            | 6.6  | % |  |  | March 2010        |    
|Regeneron Pharmaceuticals, Inc.    |  |             | 211,813   |                |           |            | 3,950      |             |            |           | 18.65         |  |       |            | 3.3  | % |  |  | December  2007(2) |    
|Illumina, Inc.                     |  |             | 115,870   |                |           |            | 3,938      |             |            |           | 33.99         |  |       |            | 3.3  | % |  |  | August 2014       |    
|Nektar Therapeutics                |  |             | 79,917    |                |           |            | 3,812      |             |            |           | 47.70         |  |       |            | 3.2  | % |  |  | October 2016      |    
|Millennium Pharmaceuticals, Inc.   |  |             | 73,347    |                |           |            | 3,420      |             |            |           | 46.62         |  |       |            | 2.9  | % |  |  | September 2013    |    
|Chemtura Corporation               |  |             | 182,829   |                |           |            | 3,377      |             |            |           | 18.47         |  |       |            | 2.8  | % |  |  | December 2009     |    
|InterMune, Inc.                    |  |             | 55,898    |                |           |            | 3,335      |             |            |           | 59.66         |  |       |            | 2.8  | % |  |  | April 2011        |    
|Chiron Corporation                 |  |             | 71,153    |                |           |            | 2,944      |             |            |           | 41.38         |  |       |            | 2.5  | % |  |  | March 2008        |    
|                                   |  |             |           |                |           |            |            |             |            |           |               |  |       |            |     
|Total/ Weighted Average(3)         |  |             | 2,048,699 |                |           | $          | 71,674     |             |            | $         | 34.99         |  |       |            | 60.2 | % |  |  |                   |    
|                                   |  |             |           |                |           |            |            |             |            |           |               |  |       |            |     






|    |                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 41,532 square feet expires March 2009, 191,904 square
    feet expires August 2010, 59,322 square feet expires
    December 2010, and 290,716 square feet expires April 2018.
|   
|(2) | 138,086 square feet expires in December 2007 and
    73,727 square feet expires in December 2009.                                                                            
|   
|(3) | Without regard to any lease terminations and/or renewal options.                                                                                                             

Lease Distribution




28



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##### Table of Contents



Lease Expirations




|                         |  |          |           |  |                |                |       |            |  |            |            |            |           |             |       |   |  |   |       | 
|------------------------ |  | -------- | --------- |  | -------------- | -------------- | ----- | ---------- |  | ---------- | ---------- | ---------- | --------- | ----------- | ----- | - |  | - | ----- | 
|                         |  | Rentable |           |  | Percent of     |                |       |            |  |            |            | Annualized |          
|                         |  | Square   |           |  | Total Rentable |                |       |            |  | Percent of |            |            | Base Rent |            
|                         |  | Feet of  |           |  | Square Feet of |                |       | Annualized |  |            | Annualized |            |           | per Leased  |      
|                         |  | Expiring |           |  | Expiring       |                |       | Base Rent  |  |            | Base Rent  |            |           | Square Foot |      
|Year of Lease Expiration |  | Leases   |           |  | Leases         |                |       | Current    |  |            | Current    |            |           | Current     |      
|                         |  |          |           |  |                |                |       |            |  |            |            |            |           |             |      
|                         |  |          |           |  |                | (In thousands) |       |            |  |            |           
|2006(1)                  |  |          | 252,305   |  |                |                | 5.8   | %          |  | $          | 4,818      |            |           |             | 4.1   | % |  | $ | 19.10 | 
|2007                     |  |          | 494,332   |  |                |                | 11.4  | %          |  |            | 9,680      |            |           |             | 8.1   | % |  |   | 19.58 | 
|2008                     |  |          | 257,215   |  |                |                | 5.9   | %          |  |            | 7,450      |            |           |             | 6.3   | % |  |   | 28.96 | 
|2009                     |  |          | 410,096   |  |                |                | 9.5   | %          |  |            | 9,350      |            |           |             | 7.9   | % |  |   | 22.80 | 
|2010                     |  |          | 781,736   |  |                |                | 18.0  | %          |  |            | 19,133     |            |           |             | 16.1  | % |  |   | 24.47 | 
|2011                     |  |          | 157,277   |  |                |                | 3.6   | %          |  |            | 5,340      |            |           |             | 4.5   | % |  |   | 33.95 | 
|2012                     |  |          | 217,318   |  |                |                | 5.0   | %          |  |            | 5,458      |            |           |             | 4.6   | % |  |   | 25.11 | 
|2013                     |  |          | 222,299   |  |                |                | 5.1   | %          |  |            | 4,914      |            |           |             | 4.1   | % |  |   | 22.11 | 
|2014                     |  |          | 238,252   |  |                |                | 5.5   | %          |  |            | 6,941      |            |           |             | 5.8   | % |  |   | 29.13 | 
|2015                     |  |          | 125,240   |  |                |                | 2.9   | %          |  |            | 3,045      |            |           |             | 2.6   | % |  |   | 24.31 | 
|Thereafter               |  |          | 1,176,253 |  |                |                | 27.3  | %          |  |            | 42,791     |            |           |             | 35.9  | % |  |   | 36.38 | 
|                         |  |          |           |  |                |                |       |            |  |            |            |            |           |             |      
|Total/ Weighted Average  |  |          | 4,332,323 |  |                |                | 100.0 | %          |  | $          | 118,920    |            |           |             | 100.0 | % |  | $ | 27.45 | 
|                         |  |          |           |  |                |                |       |            |  |            |            |            |           |             |      






|    |                                        
|--- | ---------------------------------------
|(1) | Includes current month to month leases.






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








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



29



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##### Table of Contents






PART II







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



|                                            |  |      |       |  |     |   |       |               |  |   |           |  |  |   |        | 
|------------------------------------------- |  | ---- | ----- |  | --- | - | ----- | ------------- |  | - | --------- |  |  | - | ------ | 
|                                            |  |      |       |  |     |   |       | Cash Dividend | 
|Period                                      |  | High |       |  | Low |   |       | Last          |  |   | per Share | 
|                                            |  |      |       |  |     |   |       |               |  |   |           | 
|Period August 6, 2004 to September 30, 2004 |  | $    | 18.05 |  |     | $ | 15.75 |               |  | $ | 17.59     |  |  | $ | 0.1497 | 
|Fourth Quarter 2004                         |  | $    | 22.95 |  |     | $ | 17.10 |               |  | $ | 22.21     |  |  | $ | 0.2700 | 
|First Quarter 2005                          |  | $    | 22.40 |  |     | $ | 19.40 |               |  | $ | 20.60     |  |  | $ | 0.2700 | 
|Second Quarter 2005                         |  | $    | 24.47 |  |     | $ | 19.39 |               |  | $ | 23.85     |  |  | $ | 0.2700 | 
|Third Quarter 2005                          |  | $    | 25.60 |  |     | $ | 22.30 |               |  | $ | 24.80     |  |  | $ | 0.2700 | 
|Fourth Quarter 2005                         |  | $    | 26.06 |  |     | $ | 22.25 |               |  | $ | 24.40     |  |  | $ | 0.2700 | 










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



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BIOMED REALTY TRUST, INC. AND BIOMED REALTY TRUST
PREDECESSOR


(Dollars in thousands, except per share data)


|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |         |       | 
|--------------------------------------------------------- | ----------------------------- | -------------------------------- | ---------- | ----------- | ------------ | - | ---------- | ---------- | ------ |  | ----------------------- | ----- | ----- | ---- | ------ | ------ | ------- | - | ------ | ------ | ----- | - | ------ | ------- | ----- | 
|                                                          |                               |                                  |            | Predecessor |             
|                                                          |                               | BioMed Realty Trust, Inc.        |            |             |              |  
|                                                          |                               |                                  |            |             | Period       |   |            |           
|                                                          |                               |                                  |            | Period      |              |   | January 1, |            |        | 
|                                                          |                               |                                  |            | August 11,  |              |   | 2004       |            |        | 
|                                                          |                               | Year Ended                       |            |             | 2004 through |   |            | through    |        |  | Year Ended December 31, |      
|                                                          |                               | December 31,                     |            |             | December 31, |   |            | August 17, |        |  |                         |      
|                                                          |                               | 2005                             |            |             | 2004         |   |            | 2004       |        |  | 2003                    |       |       | 2002 |        |        | 2001(1) |  
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|Statements of Income:                                     |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |        
|Revenues:                                                 |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |        
|                                                          | Rental                        |                                  | $          | 92,650      |              |   | $          | 19,432     |        |  | $                       | 3,339 |       |      | $      | 6,275  |         |   | $      | 5,869  |       |   | $      | 4,421   |      
|                                                          | Tenant recoveries             |                                  |            | 42,232      |              |   |            | 9,222      |        |  |                         | 375   |       |      |        | 744    |         |   |        | 718    |       |   |        | 283     |      
|                                                          | Other income                  |                                  |            | 3,974       |              |   |            |           |        |  |                         |      |       |      |        |       |         |   |        |       |       |   |        |        |      
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|                                                          |                               | Total revenues                   |            |             | 138,856      |   |            |            | 28,654 |  |                         |       | 3,714 |      |        |        | 7,019   |   |        |        | 6,587 |   |        |         | 4,704 | 
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|Expenses:                                                 |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |        
|                                                          | Rental operations             |                                  |            | 46,373      |              |   |            | 11,619     |        |  |                         | 353   |       |      |        | 830    |         |   |        | 821    |       |   |        | 323     |      
|                                                          | Depreciation and amortization |                                  |            | 39,378      |              |   |            | 7,853      |        |  |                         | 600   |       |      |        | 955    |         |   |        | 955    |       |   |        | 617     |      
|                                                          | General and administrative    |                                  |            | 13,278      |              |   |            | 3,130      |        |  |                         |      |       |      |        |       |         |   |        |       |       |   |        |        |      
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|                                                          |                               | Total expenses                   |            |             | 99,029       |   |            |            | 22,602 |  |                         |       | 953   |      |        |        | 1,785   |   |        |        | 1,776 |   |        |         | 940   | 
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|                                                          |                               | Income from operations           |            |             | 39,827       |   |            |            | 6,052  |  |                         |       | 2,761 |      |        |        | 5,234   |   |        |        | 4,811 |   |        |         | 3,764 | 
|Equity in net income (loss) of unconsolidated partnership |                               |                                  | 119        |             |              |   | (11        | )          |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Interest income                                           |                               |                                  | 1,333      |             |              |   | 190        |            |        |  |                        |       |       |      | 1      |        |         |   | 3      |        |       |   | 16     |        
|Interest expense                                          |                               |                                  | (23,226    | )           |              |   | (1,180     | )          |        |  | (1,760                  | )     |       |      | (2,901 | )      |         |   | (3,154 | )      |       |   | (2,722 | )      
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|                                                          |                               | Income before minority interests |            |             | 18,053       |   |            |            | 5,051  |  |                         |       | 1,001 |      |        |        | 2,334   |   |        |        | 1,660 |   |        |         | 1,058 | 
|Minority interest in consolidated partnerships            |                               |                                  | 267        |             |              |   | 145        |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Minority interests in operating partnership               |                               |                                  | (1,274     | )           |              |   | (414       | )          |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|                                                          |                               | Net income                       |            | $           | 17,046       |   |            | $          | 4,782  |  |                         | $     | 1,001 |      |        | $      | 2,334   |   |        | $      | 1,660 |   |        | $       | 1,058 | 
|                                                          |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |  
|Basic earnings per share                                  |                               | $                                | 0.44       |             |              | $ | 0.15       |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Diluted earnings per share                                |                               | $                                | 0.44       |             |              | $ | 0.15       |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Weighted average common shares outstanding  basic        |                               |                                  | 38,913,103 |             |              |   | 30,965,178 |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Weighted average common shares outstanding  diluted      |                               |                                  | 42,091,195 |             |              |   | 33,767,575 |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Cash dividends declared per common share                  |                               | $                                | 1.08       |             |              | $ | 0.4197     |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Balance Sheet Data (at period end):                       |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |        
|Investments in real estate, net                           |                               | $                                | 1,129,371  |             |              | $ | 468,530    |            |        |  |                        |       |       | $    | 47,025 |        |         | $ | 47,853 |        |       | $ | 48,627 |        
|Total assets                                              |                               |                                  | 1,337,310  |             |              |   | 581,723    |            |        |  |                        |       |       |      | 50,056 |        |         |   | 50,732 |        |       |   | 50,500 |        
|Mortgage notes payable, net                               |                               |                                  | 246,233    |             |              |   | 102,236    |            |        |  |                        |       |       |      | 37,208 |        |         |   | 37,743 |        |       |   | 36,879 |        
|Secured term loan                                         |                               |                                  | 250,000    |             |              |   |           |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Unsecured line of credit                                  |                               |                                  | 17,000     |             |              |   |           |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Total liabilities                                         |                               |                                  | 586,162    |             |              |   | 137,639    |            |        |  |                        |       |       |      | 37,597 |        |         |   | 38,560 |        |       |   | 37,962 |        
|Minority interest                                         |                               |                                  | 20,673     |             |              |   | 22,267     |            |        |  |                        |       |       |      |       |        |         |   |       |        |       |   |       |        
|Stockholders equity and partners capital                |                               |                                  | 730,475    |             |              |   | 421,817    |            |        |  |                        |       |       |      | 12,459 |        |         |   | 12,169 |        |       |   | 12,538 |        
|Total liabilities and equity                              |                               |                                  | 1,337,310  |             |              |   | 581,723    |            |        |  |                        |       |       |      | 50,056 |        |         |   | 50,732 |        |       |   | 50,500 |        
|Other Data:                                               |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |        
|Cash flows from:(2)                                       |                               |                                  |            |             |              |   |            |            |        |  |                         |       |       |      |        |        |         |   |        |        |       |   |        |        
|                                                          | Operating activities          |                                  |            | 54,490      |              |   |            | 14,470     |        |  |                         |      |       |      |        | 2,416  |         |   |        | 1,762  |       |   |        | 1,239   |      
|                                                          | Investing activities          |                                  |            | (602,007    | )            |   |            | (457,191   | )      |  |                         |      |       |      |        | (105   | )       |   |        | (159   | )     |   |        | (17,703 | )    
|                                                          | Financing activities          |                                  |            | 539,960     |              |   |            | 470,433    |        |  |                         |      |       |      |        | (2,666 | )       |   |        | (1,210 | )     |   |        | 16,569  |      






|    |                                                                                            
|--- | -------------------------------------------------------------------------------------------
|(1) | Balance sheet data are unaudited.                                                          
|   
|(2) | Cash flow information for 2004 is combined for BioMed Realty
    Trust and the Predecessor.

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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 above entitled Item 1.
Business  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 above entitled Item 1A.
Risk Factors.


Overview












32



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S-3






Business Combinations


Factors Which May Influence Future Operations






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Critical Accounting Policies






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







| |                           
| | --------------------------
| | Investments in Real Estate



|                                   |  |                                                               
|---------------------------------- |  | --------------------------------------------------------------
|Buildings and improvements         |  | 10 to 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 to 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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lease-up lease-up




lease-up lease-up


Capitalization of Interest
Cost Accounting for Costs and
the Initial Rental Operations of Real Estate Properties




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

Reporting Revenue Gross as a Principal versus
Net as an Agent




Recognition of Receipts from Made-Up Rental
Shortfalls




| |                            
| | ---------------------------
| | Investments in Partnerships

Consolidation of Variable Interest Entities Consolidated Financial
Statements


Determining Whether a General Partner, or the
General Partners as a Group, Controls a Limited Partnership or
Similar Entity When the Limited Partners Have Certain Rights 04-5), 04-5 04-5 04-5 04-5


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Results of Operations








|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              |  |      |      |   |  |        |        |        | 
|--------------------------------------------------------- | -------------------------------- | ------------------------- | ------- | ---------------------------- | ------------ | ------------ | ---------- | ------------ | ------ | ---------- | ------------ | ----- | ------------ | --------- | ------ | ---------- | ------------ |  | ---- | ---- | - |  | ------ | ------ | ------ | 
|                                                          |                                  |                           |         | Year Ended December 31, 2004 |             
|                                                          |                                  |                           |         |                              |             
|                                                          |                                  |                           |         |                              |              | Combined     |            |              |       
|                                                          |                                  |                           |         |                              |              | Contribution |            |              |       
|                                                          |                                  | BioMed Realty Trust, Inc. |         |                              | Predecessor  |              |            | Properties   |        |            |             
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |             
|                                                          |                                  |                           |         | Period                       |              |              | Period     |              |        | Period     |              |       | Year Ended   |           |        | Combined   |             
|                                                          |                                  |                           |         | August 11,                   |              |              | January 1, |              |        | January 1, |              |       | December 31, |           |        | Year Ended |             
|                                                          |                                  | Year Ended                |         |                              | 2004 through |              |            | 2004 through |        |            | 2004 through |       |              | 2004      |        |            | December 31, | 
|                                                          |                                  | December 31,              |         |                              | December 31, |              |            | August 17,   |        |            | the Date of  |       |              | Combining |        |            | 2004         | 
|                                                          |                                  | 2005                      |         |                              | 2004         |              |            | 2004         |        |            | Contribution |       |              | Entries   |        |            | Total        | 
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|Years Ended December 31, 2005 and 2004:                   |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              |  |      |      |   |  |        |       
|Revenues:                                                 |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              |  |      |      |   |  |        |       
|                                                          | Rental                           |                           | $       | 92,650                       |              |              | $          | 19,432       |        |            | $            | 3,339 |              |           | $      | 2,831      |              |  |      |     |   |  | $      | 25,602 |       
|                                                          | Tenant recoveries                |                           |         | 42,232                       |              |              |            | 9,222        |        |            |              | 375   |              |           |        | 479        |              |  |      |     |   |  |        | 10,076 |       
|                                                          | Other income                     |                           |         | 3,974                        |              |              |            |             |        |            |              |      |              |           |        |           |              |  |      |     |   |  |        |       |       
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|                                                          |                                  | Total revenues            |         |                              | 138,856      |              |            |              | 28,654 |            |              |       | 3,714        |           |        |            | 3,310        |  |      |      |  |  |        |        | 35,678 | 
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|Expenses:                                                 |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              |  |      |      |   |  |        |       
|                                                          | Rental operations                |                           |         | 46,373                       |              |              |            | 11,619       |        |            |              | 353   |              |           |        | 353        |              |  |      |     |   |  |        | 12,325 |       
|                                                          | Depreciation and amortization    |                           |         | 39,378                       |              |              |            | 7,853        |        |            |              | 600   |              |           |        | 543        |              |  |      |     |   |  |        | 8,996  |       
|                                                          | General and administrative       |                           |         | 13,278                       |              |              |            | 3,130        |        |            |              |      |              |           |        | 97         |              |  |      |     |   |  |        | 3,227  |       
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|                                                          |                                  | Total expenses            |         |                              | 99,029       |              |            |              | 22,602 |            |              |       | 953          |           |        |            | 993          |  |      |      |  |  |        |        | 24,548 | 
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|                                                          | Income from operations           |                           |         | 39,827                       |              |              |            | 6,052        |        |            |              | 2,761 |              |           |        | 2,317      |              |  |      |     |   |  |        | 11,130 |       
|Equity in net income/(loss) of unconsolidated partnership |                                  |                           | 119     |                              |              |              | (11        | )            |        |            |             |       |              |           |       |            |              |  |     |      |   |  | (11    | )     
|Interest income                                           |                                  |                           | 1,333   |                              |              |              | 190        |              |        |            |             |       |              |           | 10     |            |              |  |     |      |   |  | 200    |       
|Interest expense                                          |                                  |                           | (23,226 | )                            |              |              | (1,180     | )            |        |            | (1,760       | )     |              |           | (1,594 | )          |              |  |     |      |   |  | (4,534 | )     
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|                                                          | Income before minority interests |                           |         | 18,053                       |              |              |            | 5,051        |        |            |              | 1,001 |              |           |        | 733        |              |  |      |     |   |  |        | 6,785  |       
|Minority interests                                        |                                  |                           | (1,007  | )                            |              |              | (269       | )            |        |            |             |       |              |           | (223   | )          |              |  | (582 | )    |   |  | (1,074 | )     
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 
|                                                          | Net income                       |                           | $       | 17,046                       |              |              | $          | 4,782        |        |            | $            | 1,001 |              |           | $      | 510        |              |  | $    | (582 | ) |  | $      | 5,711  |       
|                                                          |                                  |                           |         |                              |              |              |            |              |        |            |              |       |              |           |        |            |              | 

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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  |      
|                              |                               |                                  |                |              |            |       |           |         |       |       |       |       
|                              |                               |                                  | Total revenues |              |            | 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    |      
|                              |                               |                                  |                |              |            |       |           |         |       |       |       |       
|                              |                               |                                  | Total expenses |              |            | 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 |       
|                              |                               |                                  |                |              |            |       |           |         |       |       |       |       



| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Comparison of the Year Ended December 31, 2005 to the
    Year Ended December 31, 2004

Business Combinations


Rental Revenues.


Tenant Recoveries.


Other Income.


Rental Operations Expenses.


38



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Depreciation and Amortization Expense.


General and Administrative Expenses.


Interest Income.


Interest Expense.


Minority Interests.




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

Business Combinations.


Rental Revenues.


39



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Tenant Recoveries.


Rental Operations Expenses.


Depreciation and Amortization Expense.


General and Administrative Expenses.


Interest Income.


Interest Expense.


Minority Interests.


40



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Cash Flows




|                                                    |  |                         |          |               |             |   |                 |                 |  |   |        |  
|--------------------------------------------------- |  | ----------------------- | -------- | ------------- | ----------- | - | --------------- | --------------- |  | - | ------ | -
|                                                    |  | Year Ended December 31, |         
|                                                    |  |                         |         
|                                                    |  |                         |          | BioMed        |             |   |                
|                                                    |  |                         |          | Realty Trust, |             |   | Predecessor and |                
|                                                    |  | BioMed                  |          |               | Inc. and    |   |                 | Combined        | 
|                                                    |  | Realty Trust,           |          |               | Predecessor |   |                 | Contribution    | 
|                                                    |  | Inc. 2005               |          |               | 2004        |   |                 | Properties 2003 | 
|                                                    |  |                         |          |               |             |   |                 |                 | 
|Net cash provided by operating activities           |  | $                       | 54,490   |               |             | $ | 14,470          |                 |  | $ | 4,383  |  
|Net cash used in investing activities               |  |                         | (602,007 | )             |             |   | (457,191        | )               |  |   | (105   | )
|Net cash provided by (used in) financing activities |  |                         | 539,960  |               |             |   | 470,433         |                 |  |   | (4,563 | )
|Ending cash balance                                 |  |                         | 20,312   |               |             |   | 27,869          |                 |  |   | 355    |  





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Comparison of the Year Ended December 31, 2005 to the
    Year Ended December 31, 2004











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







41



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Liquidity and Capital Resources






| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | interest expense and scheduled principal payments on outstanding
    mortgage indebtedness,
|
| |  | general and administrative expenses,                                                       
|
| |  | future distributions expected to be paid to our
    stockholders, and                      
|
| |  | capital expenditures, tenant improvements and leasing
    commissions.                     





S-3








42



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|                             |  |               |      |           |          |                   |              |      |  |   |         |  |  |               |         |  |  |  |                   | 
|---------------------------- |  | ------------- | ---- | --------- | -------- | ----------------- | ------------ | ---- |  | - | ------- |  |  | ------------- | ------- |  |  |  | ----------------- | 
|                             |  |               |      |           |          | Principal Balance |              |      | 
|                             |  |               |      | Effective |          |                   | December 31, |      |  |  
|                             |  | Stated Fixed  |      |           | Interest |                   |              |      |  |   |        
|                             |  | Interest Rate |      |           | Rate     |                   |              | 2005 |  |   | 2004    |  |  | Maturity Date |        
|                             |  |               |      |           |          |                   |              |      |  |   |         |  |  |               |        
|Ardentech Court              |  |               | 7.25 | %         |          |                   | 5.06         | %    |  | $ | 4,746   |  |  | $             | 4,828   |  |  |  | July 1, 2012      | 
|Bayshore Boulevard           |  |               | 4.55 | %         |          |                   | 4.55         | %    |  |   | 16,107  |  |  |               | 16,438  |  |  |  | January 1, 2010   | 
|Bridgeview Technology Park I |  |               | 8.07 | %         |          |                   | 5.04         | %    |  |   | 11,732  |  |  |               | 11,825  |  |  |  | January 1, 2011   | 
|Eisenhower Road              |  |               | 5.80 | %         |          |                   | 4.63         | %    |  |   | 2,211   |  |  |               | 2,252   |  |  |  | May 5, 2008       | 
|Elliott Avenue               |  |               | 7.38 | %         |          |                   | 4.63         | %    |  |   | 16,526  |  |  |               | 16,996  |  |  |  | November 24, 2007 | 
|40 Erie Street               |  |               | 7.34 | %         |          |                   | 4.90         | %    |  |   | 19,575  |  |  |               |        |  |  |  | August 1, 2008    | 
|Kendall Square D             |  |               | 6.38 | %         |          |                   | 5.45         | %    |  |   | 72,395  |  |  |               |        |  |  |  | December 1, 2018  | 
|Lucent Drive                 |  |               | 5.50 | %         |          |                   | 5.50         | %    |  |   | 5,899   |  |  |               |        |  |  |  | January 21, 2015  | 
|Monte Villa Parkway          |  |               | 4.55 | %         |          |                   | 4.55         | %    |  |   | 9,805   |  |  |               | 10,007  |  |  |  | January 1, 2010   | 
|Nancy Ridge Drive            |  |               | 7.15 | %         |          |                   | 5.38         | %    |  |   | 6,952   |  |  |               |        |  |  |  | September 1, 2012 | 
|Science Center Drive         |  |               | 7.65 | %         |          |                   | 5.04         | %    |  |   | 11,577  |  |  |               | 11,699  |  |  |  | July 1, 2011      | 
|Sidney Street                |  |               | 7.23 | %         |          |                   | 5.11         | %    |  |   | 31,426  |  |  |               |        |  |  |  | June 1, 2012      | 
|Towne Centre Drive           |  |               | 4.55 | %         |          |                   | 4.55         | %    |  |   | 22,396  |  |  |               | 22,856  |  |  |  | January 1, 2010   | 
|                             |  |               |      |           |          |                   |              |      |  |   |         |  |  |               |        
|                             |  |               |      |           |          |                   |              |      |  |   | 231,347 |  |  |               | 96,901  |  |  |  |                   | 
|Unamortized premium          |  |               |      |           |          |                   |              |      |  |   | 14,886  |  |  |               | 5,335   |  |  |  |                   | 
|                             |  |               |      |           |          |                   |              |      |  |   |         |  |  |               |        
|                             |  |               |      |           |          |                   |              |      |  | $ | 246,233 |  |  | $             | 102,236 |  |  |  |                   | 
|                             |  |               |      |           |          |                   |              |      |  |   |         |  |  |               |        

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|           |  |   |         | 
|---------- |  | - | ------- | 
|2006       |  | $ | 5,382   | 
|2007       |  |   | 21,213  | 
|2008       |  |   | 40,985  | 
|2009       |  |   | 4,618   | 
|2010       |  |   | 297,006 | 
|Thereafter |  |   | 129,143 | 
|           |  |   |        
|           |  | $ | 498,347 | 
|           |  |   |        







44



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Contractual Obligations


|                                                     |  |                |        |  |      |   |        |      |  |   |        |  |  |      |       |  |            |   |         |       |  |   |         |  |  |   |         | 
|---------------------------------------------------- |  | -------------- | ------ |  | ---- | - | ------ | ---- |  | - | ------ |  |  | ---- | ----- |  | ---------- | - | ------- | ----- |  | - | ------- |  |  | - | ------- | 
|Obligation                                           |  | 2006           |        |  | 2007 |   |        | 2008 |  |   | 2009   |  |  | 2010 |       |  | Thereafter |   |         | Total | 
|                                                     |  |                |        |  |      |   |        |      |  |   |        |  |  |      |       |  |            |   |         |       | 
|                                                     |  | (In thousands) |       
|Mortgage notes payable(1)                            |  | $              | 5,382  |  |      | $ | 21,213 |      |  | $ | 40,985 |  |  | $    | 4,618 |  |            | $ | 297,006 |       |  | $ | 129,143 |  |  | $ | 498,347 | 
|Share of mortgage debt of unconsolidated partnership |  |                | 25     |  |      |   | 27     |      |  |   | 29     |  |  |      | 32    |  |            |   | 2,142   |       |  |   |        |  |  |   | 2,255   | 
|Tenant obligations(2)                                |  |                | 2,631  |  |      |   |       |      |  |   |       |  |  |      |      |  |            |   |        |       |  |   |        |  |  |   | 2,631   | 
|Construction projects                                |  |                | 30,211 |  |      |   | 2,662  |      |  |   |       |  |  |      |      |  |            |   |        |       |  |   |        |  |  |   | 32,873  | 
|                                                     |  |                |        |  |      |   |        |      |  |   |        |  |  |      |       |  |            |   |         |       | 
|Total                                                |  | $              | 38,249 |  |      | $ | 23,902 |      |  | $ | 41,014 |  |  | $    | 4,650 |  |            | $ | 299,148 |       |  | $ | 129,143 |  |  | $ | 536,106 | 
|                                                     |  |                |        |  |      |   |        |      |  |   |        |  |  |      |       |  |            |   |         |       | 






|    |                                                                                           
|--- | ------------------------------------------------------------------------------------------
|(1) | Balance excludes $14.9 million of unamortized debt premium.                               
|   
|(2) | Committed tenant-related obligations based on executed leases as
    of December 31, 2005.

Funds from Operations




45



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|                                                     |                                                    |              |            |        |                 |   |            |       | 
|---------------------------------------------------- | -------------------------------------------------- | ------------ | ---------- | ------ | --------------- | - | ---------- | ----- | 
|                                                     |                                                    | Year Ended   |            |        | August 11, 2004 |  
|                                                     |                                                    | December 31, |            |        | to December 31, |  
|                                                     |                                                    | 2005         |            |        | 2004            |  
|                                                     |                                                    |              |            |        |                 |  
|Net income                                           |                                                    | $            | 17,046     |        |                 | $ | 4,782      |      
|Adjustments                                          |                                                    |              |            |        |                 |   |            |      
|                                                     | Minority interests in operating partnership        |              |            | 1,274  |                 |   |            | 414   | 
|                                                     | Depreciation and amortization  real estate assets |              |            | 39,428 |                 |   |            | 7,903 | 
|                                                     |                                                    |              |            |        |                 |  
|Funds from operations                                |                                                    | $            | 57,748     |        |                 | $ | 13,099     |      
|                                                     |                                                    |              |            |        |                 |  
|Funds from operations per share  diluted            |                                                    | $            | 1.37       |        |                 | $ | 0.39       |      
|                                                     |                                                    |              |            |        |                 |  
|Weighted-average common shares outstanding  diluted |                                                    |              | 42,091,195 |        |                 |   | 33,767,575 |      
|                                                     |                                                    |              |            |        |                 |  

Off Balance Sheet Arrangements






Cash Distribution Policy


i.e.




46



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Inflation











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









47



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

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


|                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |    | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Page |   
|                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |   
|Reports of Independent Registered Public
    Accounting Firm                                                                                                                                                                                                                                                                                                                                                                 |  |      | 49 | 
|Consolidated Balance Sheets of BioMed
    Realty Trust, Inc. as of December 31, 2005 and 2004                                                                                                                                                                                                                                                                                                                                |  |      | 52 | 
|Consolidated Statements of Income of BioMed
    Realty Trust, Inc. for the year ended December 31, 2005 and
    for the period from August 11, 2004 through
    December 31, 2004, and Statements of Income of Inhale 201
    Industrial Road, L.P. (Predecessor) for the period from
    January 1, 2004 through August 17, 2004 and for the
    year ended December 31, 2003                                               |  |      | 53 | 
|Consolidated Statements of
    Stockholders Equity of BioMed Realty Trust, Inc. for the
    year ended December 31, 2005 and for the period from
    August 11, 2004 through December 31, 2004, and
    Statements of Owners Equity of Inhale 201 Industrial Road,
    L.P. (Predecessor) for the period from January 1, 2004
    through August 17, 2004 and for the year ended
    December 31, 2003                     |  |      | 54 | 
|Consolidated Statements of Comprehensive
    Income of BioMed Realty Trust, Inc. for the year ended
    December 31, 2005 and for the period from August 11,
    2004 through December 31, 2004                                                                                                                                                                                                                              |  |      | 55 | 
|Consolidated Statement of Cash Flows of
    BioMed Realty Trust, Inc. for the year ended December 31,
    2005 and Consolidated and Combined Statement of Cash Flows of
    BioMed Realty Trust, Inc. and Inhale 201 Industrial Road, L.P.
    (Predecessor) for the year ended December 31, 2004 and
    Statement of Cash Flows of Inhale 201 Industrial Road, L.P.
    (Predecessor) for the year ended December 31, 2003 |  |      | 56 | 
|Notes to Consolidated Financial
    Statements                                                                                                                                                                                                                                                                                                                                                                               |  |      | 58 | 
|Financial Statement 
    Schedule III                                                                                                                                                                                                                                                                                                                                                                                       |  |      | 81 | 

48



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















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





49



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


















50



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





51



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BIOMED REALTY TRUST, INC.





CONSOLIDATED BALANCE SHEETS


(In thousands, except share data)


|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |   |         |         |         | 
|-------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | --------- | ------- | ----------------- | - | ------- | ------- | ------- | 
|                                                         |                                                                                                                                                                                           | December 31, 2005                          |           |         | December 31, 2004 |  
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  
|ASSETS                                                  
|Investments in real estate, net                          |                                                                                                                                                                                           | $                                          | 1,129,371 |         |                   | $ | 468,530 |        
|Investment in unconsolidated partnership                 |                                                                                                                                                                                           |                                            | 2,483     |         |                   |   | 2,470   |        
|Cash and cash equivalents                                |                                                                                                                                                                                           |                                            | 20,312    |         |                   |   | 27,869  |        
|Restricted cash                                          |                                                                                                                                                                                           |                                            | 5,487     |         |                   |   | 2,470   |        
|Accounts receivable, net                                 |                                                                                                                                                                                           |                                            | 9,873     |         |                   |   | 1,837   |        
|Accrued straight-line rents, net                         |                                                                                                                                                                                           |                                            | 8,731     |         |                   |   | 3,306   |        
|Acquired above market leases, net                        |                                                                                                                                                                                           |                                            | 8,817     |         |                   |   | 8,006   |        
|Deferred leasing costs, net                              |                                                                                                                                                                                           |                                            | 136,640   |         |                   |   | 61,503  |        
|Deferred loan costs, net                                 |                                                                                                                                                                                           |                                            | 4,855     |         |                   |   | 1,700   |        
|Prepaid expenses                                         |                                                                                                                                                                                           |                                            | 2,164     |         |                   |   | 1,531   |        
|Other assets                                             |                                                                                                                                                                                           |                                            | 8,577     |         |                   |   | 2,501   |        
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  
|                                                         |                                                                                                                                                                                           | Total assets                               |           | $       | 1,337,310         |   |         | $       | 581,723 | 
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  
|                                                        
|LIABILITIES AND STOCKHOLDERS EQUITY                    
|Mortgage notes payable, net                              |                                                                                                                                                                                           | $                                          | 246,233   |         |                   | $ | 102,236 |        
|Secured term loan                                        |                                                                                                                                                                                           |                                            | 250,000   |         |                   |   |        |        
|Unsecured line of credit                                 |                                                                                                                                                                                           |                                            | 17,000    |         |                   |   |        |        
|Security deposits                                        |                                                                                                                                                                                           |                                            | 6,905     |         |                   |   | 4,831   |        
|Due to affiliates                                        |                                                                                                                                                                                           |                                            |          |         |                   |   | 53      |        
|Dividends and distributions payable                      |                                                                                                                                                                                           |                                            | 13,365    |         |                   |   | 9,249   |        
|Accounts payable, accrued expenses and other liabilities |                                                                                                                                                                                           |                                            | 23,012    |         |                   |   | 7,529   |        
|Acquired below market leases, net                        |                                                                                                                                                                                           |                                            | 29,647    |         |                   |   | 13,741  |        
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  
|                                                         |                                                                                                                                                                                           | Total liabilities                          |           |         | 586,162           |   |         |         | 137,639 | 
|Minority interests                                       |                                                                                                                                                                                           |                                            | 20,673    |         |                   |   | 22,267  |        
|Stockholders equity:                                    |                                                                                                                                                                                           |                                            |           |         |                   |   |         |        
|                                                         | Preferred stock, $.01 par value, 15,000,000 shares
    authorized, none issued or outstanding                                                                                             |                                            |           |        |                   |   |         |        |        
|                                                         | Common stock, $.01 par value, 100,000,000 shares
    authorized, 46,634,432 and 31,386,333 shares issued and
    outstanding at December 31, 2005 and December 31,
    2004, respectively |                                            |           | 466     |                   |   |         | 314     |        
|                                                         | Additional paid-in capital                                                                                                                                                                |                                            |           | 760,749 |                   |   |         | 434,075 |        
|                                                         | Deferred compensation                                                                                                                                                                     |                                            |           | (3,158  | )                 |   |         | (4,182  | )      
|                                                         | Accumulated other comprehensive income                                                                                                                                                    |                                            |           | 5,922   |                   |   |         |        |        
|                                                         | Dividends in excess of earnings                                                                                                                                                           |                                            |           | (33,504 | )                 |   |         | (8,390  | )      
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  
|                                                         |                                                                                                                                                                                           | Total stockholders equity                 |           |         | 730,475           |   |         |         | 421,817 | 
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  
|                                                         |                                                                                                                                                                                           | Total liabilities and stockholders equity |           | $       | 1,337,310         |   |         | $       | 581,723 | 
|                                                         |                                                                                                                                                                                           |                                            |           |         |                   |  



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BIOMED REALTY TRUST, INC. AND


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





CONSOLIDATED STATEMENTS OF INCOME


(In thousands, except per share data)


|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |        |       |  |   |        |       | 
|----------------------------------------------- | --------------------------------------------------------- | -------------------------------- | ---- | --------------------------- | ------------------ | - | --------------- | --------------- | ------ |  | ----------------- | ------ | ----- |  | - | ------ | ----- | 
|                                                |                                                           |                                  |      | INHALE 201 INDUSTRIAL ROAD, |                   
|                                                |                                                           | BIOMED REALTY TRUST, INC.        |      |                             | L.P. (PREDECESSOR) |  
|                                                |                                                           |                                  |      |                             |                    |  
|                                                |                                                           |                                  |      | Period                      |                    |   | Period          |                 |        | 
|                                                |                                                           |                                  |      | August 11, 2004             |                    |   | January 1, 2004 |                 |        | 
|                                                |                                                           | Year Ended                       |      |                             | through            |   |                 | through         |        |  | Year Ended        |       
|                                                |                                                           | December 31, 2005                |      |                             | December 31, 2004  |   |                 | August 17, 2004 |        |  | December 31, 2003 |       
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|Revenues:                                       |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |        |       |  |   |       
|                                                | Rental                                                    |                                  | $    | 92,650                      |                    |   | $               | 19,432          |        |  | $                 | 3,339  |       |  | $ | 6,275  |      
|                                                | Tenant recoveries                                         |                                  |      | 42,232                      |                    |   |                 | 9,222           |        |  |                   | 375    |       |  |   | 744    |      
|                                                | Other income                                              |                                  |      | 3,974                       |                    |   |                 |                |        |  |                   |       |       |  |   |       |      
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|                                                |                                                           | Total revenues                   |      |                             | 138,856            |   |                 |                 | 28,654 |  |                   |        | 3,714 |  |   |        | 7,019 | 
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|Expenses:                                       |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |        |       |  |   |       
|                                                | Rental operations                                         |                                  |      | 34,505                      |                    |   |                 | 9,236           |        |  |                   | 131    |       |  |   | 408    |      
|                                                | Real estate taxes                                         |                                  |      | 11,868                      |                    |   |                 | 2,383           |        |  |                   | 222    |       |  |   | 422    |      
|                                                | Depreciation and amortization                             |                                  |      | 39,378                      |                    |   |                 | 7,853           |        |  |                   | 600    |       |  |   | 955    |      
|                                                | General and administrative                                |                                  |      | 13,278                      |                    |   |                 | 3,130           |        |  |                   |       |       |  |   |       |      
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|                                                |                                                           | Total expenses                   |      |                             | 99,029             |   |                 |                 | 22,602 |  |                   |        | 953   |  |   |        | 1,785 | 
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|                                                |                                                           | Income from operations           |      |                             | 39,827             |   |                 |                 | 6,052  |  |                   |        | 2,761 |  |   |        | 5,234 | 
|                                                | Equity in net income (loss) of unconsolidated partnership |                                  |      | 119                         |                    |   |                 | (11             | )      |  |                   |       |       |  |   |       |      
|                                                | Interest income                                           |                                  |      | 1,333                       |                    |   |                 | 190             |        |  |                   |       |       |  |   | 1      |      
|                                                | Interest expense                                          |                                  |      | (23,226                     | )                  |   |                 | (1,180          | )      |  |                   | (1,760 | )     |  |   | (2,901 | )    
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|                                                |                                                           | Income before minority interests |      |                             | 18,053             |   |                 |                 | 5,051  |  |                   |        | 1,001 |  |   |        | 2,334 | 
|                                                | Minority interest in consolidated partnerships            |                                  |      | 267                         |                    |   |                 | 145             |        |  |                   |       |       |  |   |       |      
|                                                | Minority interests in operating partnership               |                                  |      | (1,274                      | )                  |   |                 | (414            | )      |  |                   |       |       |  |   |       |      
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|                                                |                                                           | Net income                       |      | $                           | 17,046             |   |                 | $               | 4,782  |  |                   | $      | 1,001 |  |   | $      | 2,334 | 
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|Basic earnings per share                        |                                                           | $                                | 0.44 |                             |                    | $ | 0.15            |                 |        |  |                   |        |       |  |   |       
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|Diluted earnings per share                      |                                                           | $                                | 0.44 |                             |                    | $ | 0.15            |                 |        |  |                   |        |       |  |   |       
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|Weighted-average common
    shares outstanding: |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |        |       |  |   |       
|                                                | Basic                                                     |                                  |      | 38,913,103                  |                    |   |                 | 30,965,178      |        |  |                   |        |       |  |   |        |      
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       
|                                                | Diluted                                                   |                                  |      | 42,091,195                  |                    |   |                 | 33,767,575      |        |  |                   |        |       |  |   |        |      
|                                                |                                                           |                                  |      |                             |                    |   |                 |                 |        |  |                   |       



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BIOMED REALTY TRUST, INC. AND


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





CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND


STATEMENTS OF OWNERS EQUITY


(In thousands, except share data)


|                |                                                   |           |  |            |        |            |   |         |  |             |              |         |  |               |   |        |           |  |   |         |  |  |       |         |   |  |   |         |   |  |   |         |  
|--------------- | ------------------------------------------------- | --------- |  | ---------- | ------ | ---------- | - | ------- |  | ----------- | ------------ | ------- |  | ------------- | - | ------ | --------- |  | - | ------- |  |  | ----- | ------- | - |  | - | ------- | - |  | - | ------- | -
|                |                                                   |           |  |            |        |            |   |         |  | Accumulated |              |         |  |               |   |        |          
|                |                                                   |           |  |            |        | Additional |   |         |  |             | Other        |         |  | Dividends in  |   |        |           |  |  
|                |                                                   | Number of |  |            | Common |            |   | Paid-In |  |             | Deferred     |         |  | Comprehensive |   |        | Excess of |  |   | Owners |  |  |      
|                |                                                   | Shares    |  |            | Stock  |            |   | Capital |  |             | Compensation |         |  | Income        |   |        | Earnings  |  |   | Equity  |  |  | Total |        
|                |                                                   |           |  |            |        |            |   |         |  |             |              |         |  |               |   |        |           |  |   |         |  |  |       |        
|The Predecessor |                                                   |           |  |            |        |            |   |         |  |             |              |         |  |               |   |        |           |  |   |         |  |  |       |         |   |  |   |         |   |  |   |        
|                | 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 |  
|                | Net proceeds from sale of common stock            |           |  | 15,122,500 |        |            |   | 151     |  |             |              | 323,869 |  |               |   |       |           |  |   |        |  |  |       |        |   |  |   |        |   |  |   | 324,020 |  
|                | Net issuances of unvested restricted common stock |           |  | 125,599    |        |            |   | 1       |  |             |              | 2,805   |  |               |   | (2,806 | )         |  |   |        |  |  |       |        |   |  |   |        |   |  |   |        |  
|                | Vesting of restricted common stock                |           |  |           |        |            |   |        |  |             |              |        |  |               |   | 3,830  |           |  |   |        |  |  |       |        |   |  |   |        |   |  |   | 3,830   |  
|                | Dividends                                         |           |  |           |        |            |   |        |  |             |              |        |  |               |   |       |           |  |   |        |  |  |       | (42,160 | ) |  |   |        |   |  |   | (42,160 | )
|                | Net income                                        |           |  |           |        |            |   |        |  |             |              |        |  |               |   |       |           |  |   |        |  |  |       | 17,046  |   |  |   |        |   |  |   | 17,046  |  
|                | Unrealized gain on cash flow hedge                |           |  |           |        |            |   |        |  |             |              |        |  |               |   |       |           |  |   | 5,922   |  |  |       |        |   |  |   |        |   |  |   | 5,922   |  
|                |                                                   |           |  |            |        |            |   |         |  |             |              |         |  |               |   |        |           |  |   |         |  |  |       |        
|                | Balance at December 31, 2005                      |           |  | 46,634,432 |        |            | $ | 466     |  |             | $            | 760,749 |  |               | $ | (3,158 | )         |  | $ | 5,922   |  |  | $     | (33,504 | ) |  | $ |        |   |  | $ | 730,475 |  
|                |                                                   |           |  |            |        |            |   |         |  |             |              |         |  |               |   |        |           |  |   |         |  |  |       |        



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BIOMED REALTY TRUST, INC.





CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


(In thousands)


|                                   |  |   |        | 
|---------------------------------- |  | - | ------ | 
|Balance at August 11, 2004         |  | $ |       | 
|Net income                         |  |   | 4,782  | 
|                                   |  |   |       
|Balance at December 31, 2004       |  |   | 4,782  | 
|Net income                         |  |   | 17,046 | 
|Unrealized gain on cash flow hedge |  |   | 5,922  | 
|                                   |  |   |       
|Balance at December 31, 2005       |  | $ | 22,968 | 
|                                   |  |   |       



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BIOMED REALTY TRUST, INC. AND


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





CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS


(In thousands)


|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |          |        |          |       |      |      |       |  
|--------------------- | ------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ----------------------------------------- | ------------------ | ------ | ---------- | ------------------ | -------- | ------ | -------- | ----- | ---- | ---- | ----- | -
|                      |                                                                                       |                                                                                                         |                                                          | BioMed Realty                             |                    |        |           
|                      |                                                                                       |                                                                                                         |                                                          | Trust, Inc. and                           |                    |        |           
|                      |                                                                                       |                                                                                                         |                                                          | Inhale 201                                |                    |        | Inhale 201 |                   
|                      |                                                                                       | BioMed Realty                                                                                           |                                                          |                                           | Industrial Road,   |        |            | Industrial Road,   |         
|                      |                                                                                       | Trust, Inc.                                                                                             |                                                          |                                           | L.P. (Predecessor) |        |            | L.P. (Predecessor) |         
|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |         
|                      |                                                                                       | Year Ended                                                                                              |                                                          |                                           | Year Ended         |        |            | Year Ended         |         
|                      |                                                                                       | December 31, 2005                                                                                       |                                                          |                                           | December 31, 2004  |        |            | December 31, 2003  |         
|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |         
|Operating activities: |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |          |        |          |      
|                      | Net income                                                                            |                                                                                                         | $                                                        | 17,046                                    |                    |        | $          | 5,783              |          |        | $        | 2,334 |     
|                      | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                                         |                                                          |                                           |                    |        |            |                    |          |        |          |       |     
|                      |                                                                                       | Depreciation and amortization                                                                           |                                                          |                                           | 39,378             |        |            |                    | 8,453    |        |          |       | 955  |     
|                      |                                                                                       | Minority interest in consolidated partnerships                                                          |                                                          |                                           | (267               | )      |            |                    | (145     | )      |          |       |     |     
|                      |                                                                                       | Minority interests in operating partnership                                                             |                                                          |                                           | 1,274              |        |            |                    | 414      |        |          |       |     |     
|                      |                                                                                       | Bad debt expense                                                                                        |                                                          |                                           | 257                |        |            |                    | 158      |        |          |       |     |     
|                      |                                                                                       | Revenue reduction attributable to acquired above market leases                                          |                                                          |                                           | 1,424              |        |            |                    | 538      |        |          |       |     |     
|                      |                                                                                       | Revenue recognized related to acquired below market leases                                              |                                                          |                                           | (3,332             | )      |            |                    | (251     | )      |          |       |     |     
|                      |                                                                                       | Write off of capitalized costs for terminated leases                                                    |                                                          |                                           | 1,078              |        |            |                    |         |        |          |       |     |     
|                      |                                                                                       | Compensation expense related to restricted common stock                                                 |                                                          |                                           | 3,830              |        |            |                    | 872      |        |          |       |     |     
|                      |                                                                                       | Amortization of loan fees and costs                                                                     |                                                          |                                           | 1,002              |        |            |                    | 216      |        |          |       | 73   |     
|                      |                                                                                       | Write off of deferred loan costs due to repayment and
    extinguishment of debt                        |                                                          |                                           | 2,002              |        |            |                    |         |        |          |       |     |     
|                      |                                                                                       | Amortization of debt premium                                                                            |                                                          |                                           | (1,761             | )      |            |                    | (307     | )      |          |       |     |     
|                      |                                                                                       | (Income)/loss from unconsolidated partnership                                                           |                                                          |                                           | (119               | )      |            |                    | 11       |        |          |       |     |     
|                      |                                                                                       | Changes in operating assets and liabilities:                                                            |                                                          |                                           |                    |        |            |                    |          |        |          |       |      |     
|                      |                                                                                       |                                                                                                         | Restricted cash                                          |                                           |                    | (3,017 | )          |                    |          | (2,470 | )        |       |      |     |      
|                      |                                                                                       |                                                                                                         | Accounts receivable                                      |                                           |                    | (8,293 | )          |                    |          | (1,987 | )        |       |      |     |      
|                      |                                                                                       |                                                                                                         | Accrued straight-line rents                              |                                           |                    | (5,595 | )          |                    |          | (887   | )        |       |      | (648 | )    
|                      |                                                                                       |                                                                                                         | Deferred leasing costs                                   |                                           |                    | (1,665 | )          |                    |          |       |          |       |      |     |      
|                      |                                                                                       |                                                                                                         | Prepaid expenses                                         |                                           |                    | (633   | )          |                    |          | (1,531 | )        |       |      |     |      
|                      |                                                                                       |                                                                                                         | Other assets                                             |                                           |                    | 821    |            |                    |          | (201   | )        |       |      | 133  |      
|                      |                                                                                       |                                                                                                         | Due to affiliates                                        |                                           |                    | (53    | )          |                    |          | 53     |          |       |      |     |      
|                      |                                                                                       |                                                                                                         | Security deposits                                        |                                           |                    | 1,000  |            |                    |          |       |          |       |      |     |      
|                      |                                                                                       |                                                                                                         | Accounts payable, accrued expenses and other liabilities |                                           |                    | 10,113 |            |                    |          | 5,751  |          |       |      | (431 | )    
|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |         
|                      |                                                                                       |                                                                                                         |                                                          | Net cash provided by operating activities |                    |        | 54,490     |                    |          |        | 14,470   |       |      |      | 2,416 |  
|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |         
|                      | Investing activities:                                                                 |                                                                                                         |                                                          |                                           |                    |        |            |                    |          |        |          |       |     
|                      |                                                                                       | Purchases of interests in and additions to investments in real
    estate and related intangible assets |                                                          |                                           | (604,782           | )      |            |                    | (458,165 | )      |          |       | (105 | )   
|                      |                                                                                       | Minority interest investment in consolidated partnerships                                               |                                                          |                                           | 594                |        |            |                    |         |        |          |       |     |     
|                      |                                                                                       | Distributions received from unconsolidated partnership                                                  |                                                          |                                           | 106                |        |            |                    | 27       |        |          |       |     |     
|                      |                                                                                       | Receipts of master lease payments (reduction to investments in
    real estate)                         |                                                          |                                           | 2,025              |        |            |                    | 1,327    |        |          |       |     |     
|                      |                                                                                       | Security deposits received from prior owners of real estate                                             |                                                          |                                           | 1,074              |        |            |                    | 4,831    |        |          |       |     |     
|                      |                                                                                       | Redemption of operating partnership units for cash                                                      |                                                          |                                           | (173               | )      |            |                    |         |        |          |       |     |     
|                      |                                                                                       | Funds held in escrow for acquisitions (other assets)                                                    |                                                          |                                           | (200               | )      |            |                    | (1,700   | )      |          |       |     |     
|                      |                                                                                       | Additions to non-real estate assets                                                                     |                                                          |                                           | (651               | )      |            |                    | (511     | )      |          |       |     |     
|                      |                                                                                       | Repayment of related party payables                                                                     |                                                          |                                           |                   |        |            |                    | (3,000   | )      |          |       |     |     
|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |         
|                      |                                                                                       |                                                                                                         |                                                          | Net cash used in investing activities     |                    |        | (602,007   | )                  |          |        | (457,191 | )     |      |      | (105  | )
|                      |                                                                                       |                                                                                                         |                                                          |                                           |                    |        |            |                    |         

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|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |         |         |     |   |        |        |  
|------------------------------------------------- | --------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | --------------- | ------------------ | ------- | ---------- | ------------------ | ------- | ------- | --- | - | ------ | ------ | -
|                                                  |                                                                             |                                                                                                                                            |                                                      | BioMed Realty   |                    |         |           
|                                                  |                                                                             |                                                                                                                                            |                                                      | Trust, Inc. and |                    |         |           
|                                                  |                                                                             |                                                                                                                                            |                                                      | Inhale 201      |                    |         | Inhale 201 |                   
|                                                  |                                                                             | BioMed Realty                                                                                                                              |                                                      |                 | Industrial Road,   |         |            | Industrial Road,   |        
|                                                  |                                                                             | Trust, Inc.                                                                                                                                |                                                      |                 | L.P. (Predecessor) |         |            | L.P. (Predecessor) |        
|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |        
|                                                  |                                                                             | Year Ended                                                                                                                                 |                                                      |                 | Year Ended         |         |            | Year Ended         |        
|                                                  |                                                                             | December 31, 2005                                                                                                                          |                                                      |                 | December 31, 2004  |         |            | December 31, 2003  |        
|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |        
|                                                  | Financing activities:                                                       |                                                                                                                                            |                                                      |                 |                    |         |            |                    |         |         |     |   |       
|                                                  |                                                                             | Proceeds from common stock offering                                                                                                        |                                                      |                 | 340,256            |         |            |                    | 465,753 |         |     |   |       |       
|                                                  |                                                                             | Payment of offering costs                                                                                                                  |                                                      |                 | (16,236            | )       |            |                    | (36,415 | )       |     |   |       |       
|                                                  |                                                                             | Payment of loan costs                                                                                                                      |                                                      |                 | (6,159             | )       |            |                    | (1,701  | )       |     |   | (87    | )     
|                                                  |                                                                             | Line of credit proceeds                                                                                                                    |                                                      |                 | 244,175            |         |            |                    | 33,900  |         |     |   |       |       
|                                                  |                                                                             | Line of credit repayments                                                                                                                  |                                                      |                 | (227,175           | )       |            |                    | (33,900 | )       |     |   |       |       
|                                                  |                                                                             | Secured term loan proceeds                                                                                                                 |                                                      |                 | 250,000            |         |            |                    |        |         |     |   |       |       
|                                                  |                                                                             | Unsecured term loan proceeds                                                                                                               |                                                      |                 | 100,000            |         |            |                    |        |         |     |   |       |       
|                                                  |                                                                             | Unsecured term loan payments                                                                                                               |                                                      |                 | (100,000           | )       |            |                    |        |         |     |   |       |       
|                                                  |                                                                             | Proceeds from mortgage notes payable                                                                                                       |                                                      |                 |                   |         |            |                    | 49,300  |         |     |   | 227    |       
|                                                  |                                                                             | Principal payments on mortgage notes payable                                                                                               |                                                      |                 | (3,759             | )       |            |                    | (234    | )       |     |   | (762   | )     
|                                                  |                                                                             | Distributions to operating partnership unit holders                                                                                        |                                                      |                 | (3,098             | )       |            |                    | (357    | )       |     |   |       |       
|                                                  |                                                                             | Dividends paid                                                                                                                             |                                                      |                 | (38,044            | )       |            |                    | (4,698  | )       |     |   |       |       
|                                                  |                                                                             | Distributions to owners of Predecessor                                                                                                     |                                                      |                 |                   |         |            |                    | (1,215  | )       |     |   | (2,044 | )     
|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |        
|                                                  |                                                                             |                                                                                                                                            | Net cash provided by (used in) financing activities  |                 |                    | 539,960 |            |                    |         | 470,433 |     |   |        | (2,666 | )
|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |        
|                                                  |                                                                             |                                                                                                                                            | Net (decrease) increase in cash and cash equivalents |                 |                    | (7,557  | )          |                    |         | 27,712  |     |   |        | (355   | )
|Cash and cash equivalents at beginning of year    |                                                                             |                                                                                                                                            | 27,869                                               |                 |                    |         | 157        |                    |         |         | 512 |  
|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |        
|Cash and cash equivalents at end of year          |                                                                             | $                                                                                                                                          | 20,312                                               |                 |                    | $       | 27,869     |                    |         | $       | 157 |  
|                                                  |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |        
|Supplemental disclosure of cash flow information: |                                                                             |                                                                                                                                            |                                                      |                 |                    |         |            |                    |         |         |     |  
|                                                  |                                                                             | Cash paid for interest (net of amounts capitalized of $708, $0
    and $0, respectively)                                                   |                                                      | $               | 20,291             |         |            | $                  | 3,040   |         |     | $ | 2,600  |       
|                                                  | Supplemental disclosure of non-cash investing and financing
    activities: |                                                                                                                                            |                                                      |                 |                    |         |            |                    |         |         |     |   |       
|                                                  |                                                                             | Accrual for dividends declared                                                                                                             |                                                      |                 | 12,592             |         |            |                    | 8,474   |         |     |   |       |       
|                                                  |                                                                             | Accrual for distributions declared for operating partnership
    unit holders                                                              |                                                      |                 | 773                |         |            |                    | 775     |         |     |   |       |       
|                                                  |                                                                             | Restricted stock awards, net                                                                                                               |                                                      |                 | 2,806              |         |            |                    | 5,054   |         |     |   |       |       
|                                                  |                                                                             | Mortgage loans assumed (includes premium of $11,312, $5,642 and
    $0, respectively)                                                      |                                                      |                 | 149,517            |         |            |                    | 53,477  |         |     |   |       |       
|                                                  |                                                                             | Accrued construction and tenant improvement costs                                                                                          |                                                      |                 | 4,777              |         |            |                    | 29      |         |     |   |       |       
|                                                  |                                                                             | Accrued additions to non-real estate assets                                                                                                |                                                      |                 | 124                |         |            |                    |        |         |     |   |       |       
|                                                  |                                                                             | Accrued deferred leasing costs                                                                                                             |                                                      |                 | 469                |         |            |                    |        |         |     |   |       |       
|                                                  |                                                                             | 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    | )       |     |   |       |       



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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









Business Combinations


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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



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





| |                            
| | ---------------------------
| | Investments in Partnerships

Consolidation of Variable Interest
Entities Consolidated
Financial Statements


Determining Whether a General Partner, or the
General Partners as a Group, Controls a Limited Partnership or
Similar Entity When the Limited Partners Have Certain Rights 04-5), 04-5 04-5 04-5 04-5




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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                           
| | --------------------------
| | Investments in Real Estate



|                                                  |  |                                                               
|------------------------------------------------- |  | --------------------------------------------------------------
|Buildings and improvements                        |  | 10 to 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 (other assets) |  | 3 to 5 years                                                  
|Acquired in-place leases                          |  | Non-cancelable term of the related lease                      
|Acquired management agreements                    |  | Non-cancelable term of the related agreement                  



|                           |  |              |           |   |      |   |         |  
|-------------------------- |  | ------------ | --------- | - | ---- | - | ------- | -
|                           |  | December 31, |          
|                           |  |              |          
|                           |  | 2005         |           |   | 2004 |  
|                           |  |              |           |   |      |  
|Land                       |  | $            | 146,421   |   |      | $ | 68,762  |  
|Ground lease               |  |              | 14,210    |   |      |   | 14,210  |  
|Buildings and improvements |  |              | 962,482   |   |      |   | 388,755 |  
|Construction in progress   |  |              | 8,582     |   |      |   | 42      |  
|Tenant improvements        |  |              | 19,580    |   |      |   | 30      |  
|                           |  |              |           |   |      |  
|                           |  |              | 1,151,275 |   |      |   | 471,799 |  
|Accumulated depreciation   |  |              | (21,904   | ) |      |   | (3,269  | )
|                           |  |              |           |   |      |  
|                           |  | $            | 1,129,371 |   |      | $ | 468,530 |  
|                           |  |              |           |   |      |  

lease-up lease-up




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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                             |  |              |        |   |      |   |       |  
|---------------------------- |  | ------------ | ------ | - | ---- | - | ----- | -
|                             |  | December 31, |       
|                             |  |              |       
|                             |  | 2005         |        |   | 2004 |  
|                             |  |              |        |   |      |  
|Acquired above market leases |  | $            | 10,879 |   |      | $ | 8,544 |  
|Accumulated amortization     |  |              | (2,062 | ) |      |   | (538  | )
|                             |  |              |        |   |      |  
|                             |  | $            | 8,817  |   |      | $ | 8,006 |  
|                             |  |              |        |   |      |  



|                             |  |              |        |   |      |   |        |  
|---------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                             |  | December 31, |       
|                             |  |              |       
|                             |  | 2005         |        |   | 2004 |  
|                             |  |              |        |   |      |  
|Acquired below market leases |  | $            | 33,230 |   |      | $ | 13,992 |  
|Accumulated amortization     |  |              | (3,583 | ) |      |   | (251   | )
|                             |  |              |        |   |      |  
|                             |  | $            | 29,647 |   |      | $ | 13,741 |  
|                             |  |              |        |   |      |  



|                 |                                |      |   |        |      |  |   |        |   |  |      |        |   |      |   |        |            |  |   |        |   |  |   |        |   |  |   |        |  
|---------------- | ------------------------------ | ---- | - | ------ | ---- |  | - | ------ | - |  | ---- | ------ | - | ---- | - | ------ | ---------- |  | - | ------ | - |  | - | ------ | - |  | - | ------ | -
|                 |                                | 2006 |   |        | 2007 |  |   | 2008   |   |  | 2009 |        |   | 2010 |   |        | Thereafter |  |   | Total  |  
|                 |                                |      |   |        |      |  |   |        |   |  |      |        |   |      |   |        |            |  |   |        |  
|Amortization of: |                                |      |   |        |      |  |   |        |   |  |      |        |   |      |   |        |            |  |   |        |   |  |   |        |   |  |   |       
|                 | Acquired above market leases   |      | $ | (2,249 | )    |  | $ | (2,104 | ) |  | $    | (1,167 | ) |      | $ | (1,166 | )          |  | $ | (1,112 | ) |  | $ | (1,019 | ) |  | $ | (8,817 | )
|                 | Acquired below market leases   |      |   | 4,665  |      |  |   | 4,651  |   |  |      | 4,635  |   |      |   | 4,613  |            |  |   | 3,506  |   |  |   | 7,577  |   |  |   | 29,647 |  
|                 |                                |      |   |        |      |  |   |        |   |  |      |        |   |      |   |        |            |  |   |        |  
|                 | Net rental revenues  increase |      | $ | 2,416  |      |  | $ | 2,547  |   |  | $    | 3,468  |   |      | $ | 3,447  |            |  | $ | 2,394  |   |  | $ | 6,558  |   |  | $ | 20,830 |  
|                 |                                |      |   |        |      |  |   |        |   |  |      |        |   |      |   |        |            |  |   |        |  

lease-up lease-up


Capitalization of Interest Cost Accounting for Costs and the Initial
Rental Operations of Real Estate Properties


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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





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





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





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





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



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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                        |  |                   |         |  |              |   |         |     |  |   |         | 
|--------------------------------------- |  | ----------------- | ------- |  | ------------ | - | ------- | --- |  | - | ------- | 
|                                        |  | Balance at        |         |  | Accumulated  |   |         |    
|                                        |  | December 31, 2005 |         |  | Amortization |   |         | Net | 
|                                        |  |                   |         |  |              |   |         |     | 
|Acquired in-place leases                |  | $                 | 149,312 |  |              | $ | (22,577 | )   |  | $ | 126,735 | 
|Acquired management agreements          |  |                   | 10,717  |  |              |   | (2,505  | )   |  |   | 8,212   | 
|Deferred leasing and other direct costs |  |                   | 2,026   |  |              |   | (333    | )   |  |   | 1,693   | 
|                                        |  |                   |         |  |              |   |         |     | 
|                                        |  | $                 | 162,055 |  |              | $ | (25,415 | )   |  | $ | 136,640 | 
|                                        |  |                   |         |  |              |   |         |     | 



|                                        |  |                   |        |  |              |   |        |     |  |   |        | 
|--------------------------------------- |  | ----------------- | ------ |  | ------------ | - | ------ | --- |  | - | ------ | 
|                                        |  | 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 and other direct costs |  |                   | 361    |  |              |   | (95    | )   |  |   | 266    | 
|                                        |  |                   |        |  |              |   |        |     | 
|                                        |  | $                 | 66,175 |  |              | $ | (4,672 | )   |  | $ | 61,503 | 
|                                        |  |                   |        |  |              |   |        |     | 



|           |  |   |         | 
|---------- |  | - | ------- | 
|2006       |  | $ | 24,500  | 
|2007       |  |   | 22,637  | 
|2008       |  |   | 19,453  | 
|2009       |  |   | 18,262  | 
|2010       |  |   | 10,833  | 
|Thereafter |  |   | 40,955  | 
|           |  |   |        
|           |  | $ | 136,640 | 
|           |  |   |        



| |                    
| | -------------------
| | 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


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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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

paid-in




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









| |                            
| | ---------------------------
| | 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. | Mortgage Notes Payable



|                             |  |          |      |   |           |  |                   |              |  |   |         |  |  |               |         |  |  |  |                   | 
|---------------------------- |  | -------- | ---- | - | --------- |  | ----------------- | ------------ |  | - | ------- |  |  | ------------- | ------- |  |  |  | ----------------- | 
|                             |  | Stated   |      |   |           |  | Principal Balance |              |  |  
|                             |  | Fixed    |      |   | Effective |  |                   | December 31, |  |   |        
|                             |  | Interest |      |   | Interest  |  |                   |              |  |   |        
|                             |  | Rate     |      |   | Rate      |  |                   | 2005         |  |   | 2004    |  |  | Maturity Date |        
|                             |  |          |      |   |           |  |                   |              |  |   |         |  |  |               |        
|Ardentech Court              |  |          | 7.25 | % |           |  | 5.06              | %            |  | $ | 4,746   |  |  | $             | 4,828   |  |  |  | July 1, 2012      | 
|Bayshore Boulevard           |  |          | 4.55 | % |           |  | 4.55              | %            |  |   | 16,107  |  |  |               | 16,438  |  |  |  | January 1, 2010   | 
|Bridgeview Technology Park I |  |          | 8.07 | % |           |  | 5.04              | %            |  |   | 11,732  |  |  |               | 11,825  |  |  |  | January 1, 2011   | 
|Eisenhower Road              |  |          | 5.80 | % |           |  | 4.63              | %            |  |   | 2,211   |  |  |               | 2,252   |  |  |  | May 5, 2008       | 
|Elliott Avenue               |  |          | 7.38 | % |           |  | 4.63              | %            |  |   | 16,526  |  |  |               | 16,996  |  |  |  | November 24, 2007 | 
|40 Erie Street               |  |          | 7.34 | % |           |  | 4.90              | %            |  |   | 19,575  |  |  |               |        |  |  |  | August 1, 2008    | 
|Kendall Square D             |  |          | 6.38 | % |           |  | 5.45              | %            |  |   | 72,395  |  |  |               |        |  |  |  | December 1, 2018  | 
|Lucent Drive                 |  |          | 5.50 | % |           |  | 5.50              | %            |  |   | 5,899   |  |  |               |        |  |  |  | January 21, 2015  | 
|Monte Villa Parkway          |  |          | 4.55 | % |           |  | 4.55              | %            |  |   | 9,805   |  |  |               | 10,007  |  |  |  | January 1, 2010   | 
|Nancy Ridge Drive            |  |          | 7.15 | % |           |  | 5.38              | %            |  |   | 6,952   |  |  |               |        |  |  |  | September 1, 2012 | 
|Science Center Drive         |  |          | 7.65 | % |           |  | 5.04              | %            |  |   | 11,577  |  |  |               | 11,699  |  |  |  | July 1, 2011      | 
|Sidney Street                |  |          | 7.23 | % |           |  | 5.11              | %            |  |   | 31,426  |  |  |               |        |  |  |  | June 1, 2012      | 
|Towne Centre Drive           |  |          | 4.55 | % |           |  | 4.55              | %            |  |   | 22,396  |  |  |               | 22,856  |  |  |  | January 1, 2010   | 
|                             |  |          |      |   |           |  |                   |              |  |   |         |  |  |               |        
|                             |  |          |      |   |           |  |                   |              |  |   | 231,347 |  |  |               | 96,901  |  |  |  |                   | 
|Unamortized premium          |  |          |      |   |           |  |                   |              |  |   | 14,886  |  |  |               | 5,335   |  |  |  |                   | 
|                             |  |          |      |   |           |  |                   |              |  |   |         |  |  |               |        
|                             |  |          |      |   |           |  |                   |              |  | $ | 246,233 |  |  | $             | 102,236 |  |  |  |                   | 
|                             |  |          |      |   |           |  |                   |              |  |   |         |  |  |               |        









|   |                  
|-- | -----------------
|5. | Credit Facilities



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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |  |   |         | 
|---------- |  | - | ------- | 
|2006       |  | $ | 5,382   | 
|2007       |  |   | 21,213  | 
|2008       |  |   | 40,985  | 
|2009       |  |   | 4,618   | 
|2010       |  |   | 297,006 | 
|Thereafter |  |   | 129,143 | 
|           |  |   |        
|           |  | $ | 498,347 | 
|           |  |   |        



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



Earnings per Share


|                                                  |                                                      |                             |        |                   |                   |   |       |            |           | 
|------------------------------------------------- | ---------------------------------------------------- | --------------------------- | ------ | ----------------- | ----------------- | - | ----- | ---------- | --------- | 
|                                                  |                                                      |                             |        | Period August 11, |                  
|                                                  |                                                      | Year Ended                  |        |                   | 2004 through      |  
|                                                  |                                                      | December 31, 2005           |        |                   | December 31, 2004 |  
|                                                  |                                                      |                             |        |                   |                   |  
|Net income attributable to common shares          |                                                      | $                           | 17,046 |                   |                   | $ | 4,782 |           
|                                                  | Minority interests in operating partnership          |                             |        | 1,274             |                   |   |       | 414        |          
|                                                  |                                                      |                             |        |                   |                   |  
|Adjusted net income attributable to common shares |                                                      | $                           | 18,320 |                   |                   | $ | 5,196 |           
|                                                  |                                                      |                             |        |                   |                   |  
|Weighted-average common shares outstanding:       |                                                      |                             |        |                   |                   |   |       |           
|                                                  | Basic                                                |                             |        | 38,913,103        |                   |   |       | 30,965,178 |          
|                                                  | Incremental shares from assumed conversion/exercise: |                             |        |                   |                   |   |       |            |          
|                                                  |                                                      | Stock warrant               |        |                   | 92,488            |   |       |            | 51,681    | 
|                                                  |                                                      | Vesting of restricted stock |        |                   | 215,078           |   |       |            | 90,173    | 
|                                                  |                                                      | Operating partnership units |        |                   | 2,870,526         |   |       |            | 2,660,543 | 
|                                                  |                                                      |                             |        |                   |                   |  
|                                                  | Diluted                                              |                             |        | 42,091,195        |                   |   |       | 33,767,575 |          
|                                                  |                                                      |                             |        |                   |                   |  
|Earnings per share  basic and diluted            |                                                      | $                           | 0.44   |                   |                   | $ | 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)






Accounting for Derivative Investment
and Hedging Activities






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









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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                            
|-- | ---------------------------
|9. | Investments in Partnerships







|    |                                 
|--- | --------------------------------
|10. | Derivative Financial Instruments





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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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











|                                                   |  |        |         |     |           |   |         |           |  |          |         |   |  |            |        |   |              |          |         |          |  |   |         |   |  |           |        |   |       |   |        |   |  |   |         |   |  |   |           |  
|-------------------------------------------------- |  | ------ | ------- | --- | --------- | - | ------- | --------- |  | -------- | ------- | - |  | ---------- | ------ | - | ------------ | -------- | ------- | -------- |  | - | ------- | - |  | --------- | ------ | - | ----- | - | ------ | - |  | - | ------- | - |  | - | --------- | -
|                                                   |  |        |         |     |           |   |         |           |  | New York |         |   |  |            |        |   | University   |          |         |          |  |  
|                                                   |  |        |         | San |           |   |         |           |  |          | and     |   |  |            |        |   |              | Related/ |         |          |  |   |        
|                                                   |  | Boston |         |     | Francisco |   |         | San Diego |  |          | Seattle |   |  | New Jersey |        |   | Pennsylvania |          |         | Maryland |  |   | Other   |   |  | Corporate |        |   | Total |  
|                                                   |  |        |         |     |           |   |         |           |  |          |         |   |  |            |        |   |              |          |         |          |  |   |         |   |  |           |        |   |       |  
|Rental revenues and tenant recoveries              |  | $      | 39,672  |     |           | $ | 15,863  |           |  | $        | 16,183  |   |  | $          | 8,711  |   |              | $        | 35,138  |          |  | $ | 14,826  |   |  | $         | 4,081  |   |       | $ | 434    |   |  | $ | (26     | ) |  | $ | 134,882   |  
|Rental operations and real estate tax expenses     |  |        | 9,255   |     |           |   | 2,333   |           |  |          | 3,665   |   |  |            | 1,087  |   |              |          | 24,154  |          |  |   | 6,447   |   |  |           | 401    |   |       |   | 57     |   |  |   | (1,026  | ) |  |   | 46,373    |  
|                                                   |  |        |         |     |           |   |         |           |  |          |         |   |  |            |        |   |              |          |         |          |  |   |         |   |  |           |        |   |       |  
|Net operating income                               |  |        | 30,417  |     |           |   | 13,530  |           |  |          | 12,518  |   |  |            | 7,624  |   |              |          | 10,984  |          |  |   | 8,379   |   |  |           | 3,680  |   |       |   | 377    |   |  |   | 1,000   |   |  |   | 88,509    |  
|Equity in net income of unconsolidated partnership |  |        |        |     |           |   |        |           |  |          | 119     |   |  |            |       |   |              |          |        |          |  |   |        |   |  |           |       |   |       |   |       |   |  |   |        |   |  |   | 119       |  
|Other income                                       |  |        | 1       |     |           |   | 3,501   |           |  |          | 463     |   |  |            | 1      |   |              |          |        |          |  |   |        |   |  |           |       |   |       |   |       |   |  |   | 8       |   |  |   | 3,974     |  
|Interest income                                    |  |        | 53      |     |           |   | 140     |           |  |          | 25      |   |  |            | 6      |   |              |          | 18      |          |  |   | 32      |   |  |           | 3      |   |       |   | 1      |   |  |   | 1,055   |   |  |   | 1,333     |  
|Depreciation and amortization                      |  |        | (12,135 | )   |           |   | (5,937  | )         |  |          | (6,562  | ) |  |            | (3,184 | ) |              |          | (6,458  | )        |  |   | (4,249  | ) |  |           | (704   | ) |       |   | (149   | ) |  |   |        |   |  |   | (39,378   | )
|General and administrative                         |  |        |        |     |           |   |        |           |  |          | (4      | ) |  |            |       |   |              |          |        |          |  |   |        |   |  |           |       |   |       |   |       |   |  |   | (13,274 | ) |  |   | (13,278   | )
|Interest expense                                   |  |        | (4,135  | )   |           |   | (1,360  | )         |  |          | (1,740  | ) |  |            | (1,348 | ) |              |          |        |          |  |   | (110    | ) |  |           |       |   |       |   | (191   | ) |  |   | (14,342 | ) |  |   | (23,226   | )
|Minority interests                                 |  |        |        |     |           |   |        |           |  |          |        |   |  |            |       |   |              |          |        |          |  |   | 267     |   |  |           |       |   |       |   |       |   |  |   | (1,274  | ) |  |   | (1,007    | )
|                                                   |  |        |         |     |           |   |         |           |  |          |         |   |  |            |        |   |              |          |         |          |  |   |         |   |  |           |        |   |       |  
|Net income                                         |  | $      | 14,201  |     |           | $ | 9,874   |           |  | $        | 4,819   |   |  | $          | 3,099  |   |              | $        | 4,544   |          |  | $ | 4,319   |   |  |           | 2,979  |   |       |   | 38     |   |  | $ | (26,827 | ) |  | $ | 17,046    |  
|                                                   |  |        |         |     |           |   |         |           |  |          |         |   |  |            |        |   |              |          |         |          |  |   |         |   |  |           |        |   |       |  
|Investment in unconsolidated partnership           |  |        |        |     |           |   |        |           |  | $        | 2,483   |   |  |            |       |   |              |          |        |          |  |   |        |   |  |           |       |   |       |   |       |   |  |   |        |   |  | $ | 2,483     |  
|                                                   |  |        |         |     |           |   |         |           |  |          |         |   |  |            |        |   |              |          |         |          |  |   |         |   |  |           |        |   |       |  
|Total assets                                       |  | $      | 575,492 |     |           | $ | 211,334 |           |  | $        | 157,776 |   |  | $          | 68,332 |   |              | $        | 107,846 |          |  | $ | 136,271 |   |  | $         | 32,024 |   |       | $ | 26,485 |   |  | $ | 21,750  |   |  | $ | 1,337,310 |  

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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                     |  |        |      |     |           |  |      |           |  |          |         |   |  |            |     |   |              |          |      |          |  |  |       |   |  |           |     |   |       |  |     |   |  |  |      |    |  |  |       |  
|------------------------------------ |  | ------ | ---- | --- | --------- |  | ---- | --------- |  | -------- | ------- | - |  | ---------- | --- | - | ------------ | -------- | ---- | -------- |  |  | ----- | - |  | --------- | --- | - | ----- |  | --- | - |  |  | ---- | -- |  |  | ----- | -
|                                     |  |        |      |     |           |  |      |           |  | New York |         |   |  |            |     |   | University   |          |      |          |  | 
|                                     |  |        |      | San |           |  |      |           |  |          | and     |   |  |            |     |   |              | Related/ |      |          |  |  |      
|                                     |  | Boston |      |     | Francisco |  |      | San Diego |  |          | Seattle |   |  | New Jersey |     |   | Pennsylvania |          |      | Maryland |  |  | Other |   |  | Corporate |     |   | Total | 
|                                     |  |        |      |     |           |  |      |           |  |          |         |   |  |            |     |   |              |          |      |          |  |  |       |   |  |           |     |   |       | 
|% of total revenues                  |  |        | 29.4 | %   |           |  | 11.8 | %         |  |          | 12.0    | % |  |            | 6.5 | % |              |          | 26.1 | %        |  |  | 11.0  | % |  |           | 3.0 | % |       |  | 0.3 | % |  |  | (0.1 | )% |  |  | 100.0 | %
|% of total rental operations expense |  |        | 20.0 | %   |           |  | 5.0  | %         |  |          | 7.9     | % |  |            | 2.3 | % |              |          | 52.1 | %        |  |  | 13.9  | % |  |           | 0.9 | % |       |  | 0.1 | % |  |  | (2.2 | )% |  |  | 100.0 | %
|                                     |  |        |      |     |           |  |      |           |  |          |         |   |  |            |     |   |              |          |      |          |  |  |       |   |  |           |     |   |       | 
|% of total net operating income      |  |        | 34.4 | %   |           |  | 15.3 | %         |  |          | 14.1    | % |  |            | 8.6 | % |              |          | 12.4 | %        |  |  | 9.5   | % |  |           | 4.2 | % |       |  | 0.4 | % |  |  | 1.1  | %  |  |  | 100.0 | %
|                                     |  |        |      |     |           |  |      |           |  |          |         |   |  |            |     |   |              |          |      |          |  |  |       |   |  |           |     |   |       | 



|                                                 |  |           |         |   |           |   |         |          |     |   |            |   |  |              |         |   |          |   |        |           |  |   |        |   |  |   |        |   |  |   |         |  
|------------------------------------------------ |  | --------- | ------- | - | --------- | - | ------- | -------- | --- | - | ---------- | - |  | ------------ | ------- | - | -------- | - | ------ | --------- |  | - | ------ | - |  | - | ------ | - |  | - | ------- | -
|                                                 |  |           |         |   |           |   |         | New York |     |   |            |   |  |              |         |   |         
|                                                 |  | San       |         |   |           |   |         |          | and |   |            |   |  |              |         |   |          |  
|                                                 |  | Francisco |         |   | San Diego |   |         | Seattle  |     |   | New Jersey |   |  | Pennsylvania |         |   | Maryland |   |        | Corporate |  |   | Total  |  
|                                                 |  |           |         |   |           |   |         |          |     |   |            |   |  |              |         |   |          |   |        |           |  |   |        |  
|Rental revenues and tenant recoveries            |  | $         | 5,165   |   |           | $ | 4,621   |          |     | $ | 2,975      |   |  | $            | 11,167  |   |          | $ | 4,565  |           |  | $ | 161    |   |  | $ |       |   |  | $ | 28,654  |  
|Rental operations and real estate tax expenses   |  |           | 732     |   |           |   | 820     |          |     |   | 421        |   |  |              | 7,194   |   |          |   | 2,197  |           |  |   | 17     |   |  |   | 238    |   |  |   | 11,619  |  
|                                                 |  |           |         |   |           |   |         |          |     |   |            |   |  |              |         |   |          |   |        |           |  |   |        |  
|Net operating income                             |  |           | 4,433   |   |           |   | 3,801   |          |     |   | 2,554      |   |  |              | 3,973   |   |          |   | 2,368  |           |  |   | 144    |   |  |   | (238   | ) |  |   | 17,035  |  
|Equity in net loss of unconsolidated partnership |  |           |        |   |           |   | (11     | )        |     |   |           |   |  |              |        |   |          |   |       |           |  |   |       |   |  |   |       |   |  |   | (11     | )
|Interest income                                  |  |           | 2       |   |           |   | 16      |          |     |   | 6          |   |  |              | 16      |   |          |   | 1      |           |  |   |       |   |  |   | 149    |   |  |   | 190     |  
|Depreciation and amortization                    |  |           | (1,326  | ) |           |   | (1,689  | )        |     |   | (1,193     | ) |  |              | (2,279  | ) |          |   | (1,337 | )         |  |   | (29    | ) |  |   |       |   |  |   | (7,853  | )
|General and administrative                       |  |           |        |   |           |   |        |          |     |   |           |   |  |              |        |   |          |   |       |           |  |   |       |   |  |   | (3,130 | ) |  |   | (3,130  | )
|Interest expense                                 |  |           | (269    | ) |           |   | (200    | )        |     |   | (301       | ) |  |              |        |   |          |   | (43    | )         |  |   |       |   |  |   | (367   | ) |  |   | (1,180  | )
|Minority interests                               |  |           |        |   |           |   |        |          |     |   |           |   |  |              |        |   |          |   | 145    |           |  |   |       |   |  |   | (414   | ) |  |   | (269    | )
|                                                 |  |           |         |   |           |   |         |          |     |   |            |   |  |              |         |   |          |   |        |           |  |   |        |  
|Net income                                       |  | $         | 2,840   |   |           | $ | 1,917   |          |     | $ | 1,066      |   |  | $            | 1,710   |   |          | $ | 1,134  |           |  |   | 115    |   |  | $ | (4,000 | ) |  | $ | 4,782   |  
|                                                 |  |           |         |   |           |   |         |          |     |   |            |   |  |              |         |   |          |   |        |           |  |   |        |  
|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 |  

|                                     |  |           |      |   |           |  |      |          |     |  |            |   |  |              |      |   |          |  |      |           |  |  |       |   |  |  |      |    |  |  |       |  
|------------------------------------ |  | --------- | ---- | - | --------- |  | ---- | -------- | --- |  | ---------- | - |  | ------------ | ---- | - | -------- |  | ---- | --------- |  |  | ----- | - |  |  | ---- | -- |  |  | ----- | -
|                                     |  |           |      |   |           |  |      | New York |     |  |            |   |  |              |      |   |         
|                                     |  | San       |      |   |           |  |      |          | and |  |            |   |  |              |      |   |          | 
|                                     |  | Francisco |      |   | San Diego |  |      | Seattle  |     |  | New Jersey |   |  | Pennsylvania |      |   | Maryland |  |      | Corporate |  |  | Total |  
|                                     |  |           |      |   |           |  |      |          |     |  |            |   |  |              |      |   |          |  |      |           |  |  |       |  
|% of total revenues                  |  |           | 18.0 | % |           |  | 16.1 | %        |     |  | 10.4       | % |  |              | 39.0 | % |          |  | 15.9 | %         |  |  | 0.6   | % |  |  | 0.0  | %  |  |  | 100.0 | %
|% of total rental operations expense |  |           | 6.3  | % |           |  | 7.1  | %        |     |  | 3.6        | % |  |              | 61.9 | % |          |  | 18.9 | %         |  |  | 0.1   | % |  |  | 2.1  | %  |  |  | 100.0 | %
|                                     |  |           |      |   |           |  |      |          |     |  |            |   |  |              |      |   |          |  |      |           |  |  |       |  
|% of total net operating income      |  |           | 26.0 | % |           |  | 22.3 | %        |     |  | 15.0       | % |  |              | 23.3 | % |          |  | 13.9 | %         |  |  | 0.8   | % |  |  | (1.3 | )% |  |  | 100.0 | %
|                                     |  |           |      |   |           |  |      |          |     |  |            |   |  |              |      |   |          |  |      |           |  |  |       |  

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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                     
|--- | --------------------
|12. | Future Lease Revenue



|           |  |   |         | 
|---------- |  | - | ------- | 
|2006       |  | $ | 114,148 | 
|2007       |  |   | 112,051 | 
|2008       |  |   | 100,824 | 
|2009       |  |   | 98,421  | 
|2010       |  |   | 81,650  | 
|Thereafter |  |   | 431,698 | 
|           |  |   |        
|           |  | $ | 938,792 | 
|           |  |   |        



|                          |  |   |         | 
|------------------------- |  | - | ------- | 
|Location                  |  |  
|                          |  |  
|Boston                    |  | $ | 480,027 | 
|San Francisco             |  |   | 134,962 | 
|San Diego                 |  |   | 91,155  | 
|Seattle                   |  |   | 30,787  | 
|New York/ New Jersey      |  |   | 54,264  | 
|Pennsylvania              |  |   | 60,371  | 
|Maryland                  |  |   | 46,088  | 
|University Related/ Other |  |   | 41,138  | 
|                          |  |   |        
|                          |  | $ | 938,792 | 
|                          |  |   |        



|    |                              
|--- | -----------------------------
|13. | Commitments and Contingencies



| |              
| | -------------
| | Ground Leases

99-year


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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|           |  |   |        | 
|---------- |  | - | ------ | 
|2006       |  | $ | 185    | 
|2007       |  |   | 185    | 
|2008       |  |   | 187    | 
|2009       |  |   | 214    | 
|2010       |  |   | 214    | 
|Thereafter |  |   | 11,758 | 
|           |  |   |       
|           |  | $ | 12,743 | 
|           |  |   |       



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







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





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





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



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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





|    |                      
|--- | ---------------------
|14. | Property Acquisitions



|                                                          |  |             |            |  |               |       |         |                  |  |   |          |       |  |            |          |  |        |          |       |         |  |   |         |   |  |               |          |   |  |   |        |  |  |   |         | 
|--------------------------------------------------------- |  | ----------- | ---------- |  | ------------- | ----- | ------- | ---------------- |  | - | -------- | ----- |  | ---------- | -------- |  | ------ | -------- | ----- | ------- |  | - | ------- | - |  | ------------- | -------- | - |  | - | ------ |  |  | - | ------- | 
|                                                          |  |             |            |  |               |       |         | Deferred Leasing |  |   |          |       |  |            |          |  |       
|                                                          |  |             |            |  |               |       |         | Costs            |  |   |          |       |  |            |          |  |       
|                                                          |  |             |            |  |               | Above |         |                  |  |   |          | Below |  |            | Mortgage |  |        | Mortgage |       |         | 
|                                                          |  | Acquisition |            |  | Investment in |       |         | Market           |  |   | In-Place |       |  | Management |          |  | Market |          |       | Note    |  |   | Note    |   |  | Total Cash    |         
|Property                                                  |  | Date        |            |  | Real Estate   |       |         | Lease            |  |   | Lease    |       |  | Fee        |          |  | Lease  |          |       | Assumed |  |   | Premium |   |  | Consideration |         
|                                                          |  |             |            |  |               |       |         |                  |  |   |          |       |  |            |          |  |        |          |       |         |  |   |         |   |  |               |         
|Albany Street                                             |  |             | 5/31/2005  |  |               | $     | 33,235  |                  |  | $ | 620      |       |  | $          | 4,232    |  |        | $        | 363   |         |  | $ |        |   |  | $             |         |   |  | $ |       |  |  | $ | 38,450  | 
|Bridgeview Technology Park II                             |  |             | 3/16/2005  |  |               |       | 14,588  |                  |  |   |         |       |  |            | 2,166    |  |        |          | 242   |         |  |   | (778    | ) |  |               |         |   |  |   |       |  |  |   | 16,218  | 
|Colorow Drive                                             |  |             | 12/22/2005 |  |               |       | 19,369  |                  |  |   |         |       |  |            |         |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 19,369  | 
|Coolidge Avenue                                           |  |             | 4/5/2005   |  |               |       | 9,862   |                  |  |   |         |       |  |            | 977      |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 10,839  | 
|Dumbarton Circle                                          |  |             | 5/27/2005  |  |               |       | 7,819   |                  |  |   |         |       |  |            | 1,012    |  |        |          | 127   |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 8,958   | 
|Eccles Avenue                                             |  |             | 12/1/2005  |  |               |       | 21,856  |                  |  |   | 1,826    |       |  |            | 2,235    |  |        |          | 115   |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 26,032  | 
|21 Erie Street                                            |  |             | 5/31/2005  |  |               |       | 21,738  |                  |  |   |         |       |  |            | 1,301    |  |        |          | 264   |         |  |   | (1,170  | ) |  |               |         |   |  |   |       |  |  |   | 22,133  | 
|40 Erie Street                                            |  |             | 5/31/2005  |  |               |       | 41,371  |                  |  |   |         |       |  |            | 5,441    |  |        |          | 289   |         |  |   |        |   |  |               | (20,192  | ) |  |   | 1,338  |  |  |   | 28,247  | 
|Faraday Avenue                                            |  |             | 9/19/2005  |  |               |       | 8,560   |                  |  |   |         |       |  |            |         |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 8,560   | 
|Fresh Pond Research Park                                  |  |             | 4/5/2005   |  |               |       | 21,822  |                  |  |   |         |       |  |            | 1,617    |  |        |          |      |         |  |   | (2,637  | ) |  |               |         |   |  |   |       |  |  |   | 20,802  | 
|George Patterson Boulevard                                |  |             | 10/28/2005 |  |               |       | 13,001  |                  |  |   |         |       |  |            | 1,976    |  |        |          | 211   |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 15,188  | 
|Graphics Drive                                            |  |             | 3/17/2005  |  |               |       | 7,377   |                  |  |   |         |       |  |            | 400      |  |        |          | 10    |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 7,787   | 
|Kaiser Drive                                              |  |             | 8/25/2005  |  |               |       | 9,523   |                  |  |   |         |       |  |            |         |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 9,523   | 
|Kendall Square D                                          |  |             | 5/31/2005  |  |               |       | 169,880 |                  |  |   |         |       |  |            | 28,072   |  |        |          |      |         |  |   |        |   |  |               | (73,189  | ) |  |   | 5,520  |  |  |   | 130,283 | 
|Lucent Drive                                              |  |             | 5/31/2005  |  |               |       | 6,153   |                  |  |   |         |       |  |            | 995      |  |        |          |      |         |  |   |        |   |  |               | (6,014   | ) |  |   |       |  |  |   | 1,134   | 
|Nancy Ridge Drive                                         |  |             | 4/21/2005  |  |               |       | 12,407  |                  |  |   |         |       |  |            | 1,158    |  |        |          | 95    |         |  |   |        |   |  |               | (7,001   | ) |  |   | 768    |  |  |   | 7,427   | 
|Phoenixville Pike                                         |  |             | 4/5/2005   |  |               |       | 12,083  |                  |  |   |         |       |  |            | 1,121    |  |        |          | 43    |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 13,247  | 
|Sidney Street                                             |  |             | 5/31/2005  |  |               |       | 58,068  |                  |  |   |         |       |  |            | 10,031   |  |        |          | 644   |         |  |   | (14,032 | ) |  |               | (31,809  | ) |  |   | 3,686  |  |  |   | 26,588  | 
|1000 Uniqema Boulevard                                    |  |             | 9/30/2005  |  |               |       | 14,568  |                  |  |   |         |       |  |            | 1,735    |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 16,303  | 
|Vassar Street                                             |  |             | 5/31/2005  |  |               |       | 15,881  |                  |  |   |         |       |  |            | 2,434    |  |        |          | 163   |         |  |   | (621    | ) |  |               |         |   |  |   |       |  |  |   | 17,857  | 
|Waples Street                                             |  |             | 3/1/2005   |  |               |       | 5,377   |                  |  |   |         |       |  |            |         |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 5,377   | 
|Kendall Square A                                          |  |             | 5/31/2005  |  |               |       | 126,104 |                  |  |   |         |       |  |            | 24,746   |  |        |          |      |         |  |   |        |   |  |               |         |   |  |   |       |  |  |   | 150,850 | 
|                                                          |  |             |            |  |               |       |         |                  |  |   |          |       |  |            |          |  |        |          |       |         |  |   |         |   |  |               |         
|                                                          |  |             |            |  |               | $     | 650,642 |                  |  | $ | 2,446    |       |  | $          | 91,649   |  |        | $        | 2,566 |         |  | $ | (19,238 | ) |  | $             | (138,205 | ) |  | $ | 11,312 |  |  | $ | 601,172 | 
|                                                          |  |             |            |  |               |       |         |                  |  |   |          |       |  |            |          |  |        |          |       |         |  |   |         |   |  |               |         
|Weighted average intangible amortization life (in months) |  |             |            |  |               |       |        |                  |  |   | 44       |       |  |            | 122      |  |        |          | 85    |         |  |   | 70      |   |  |               |         |   |  |   | 118    |  |  |   |        | 

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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                          |  |             |            |            |         |   |         |                  |  |   |          |  |       |            |        |          |        |   |          |         |  |   |         |   |  |                  |         |   |  |   |       |  |  |   |         | 
|--------------------------------------------------------- |  | ----------- | ---------- | ---------- | ------- | - | ------- | ---------------- |  | - | -------- |  | ----- | ---------- | ------ | -------- | ------ | - | -------- | ------- |  | - | ------- | - |  | ---------------- | ------- | - |  | - | ----- |  |  | - | ------- | 
|                                                          |  |             |            |            |         |   |         | Deferred Leasing |  |   |          |  |       |            |        |          |       
|                                                          |  |             |            |            |         |   |         | Costs            |  |   |          |  |       |            |        |          |       
|                                                          |  |             |            | Investment |         |   | Above   |                  |  |   |          |  | Below |            |        | Mortgage |        |   | Mortgage |         |  |  
|                                                          |  | Acquisition |            |            | in Real |   |         | Market           |  |   | In-Place |  |       | Management |        |          | Market |   |          | Note    |  |   | Note    |   |  | Total Cash       |        
|Property                                                  |  | Date        |            |            | Estate  |   |         | Lease            |  |   | Lease    |  |       | Fee        |        |          | Lease  |   |          | Assumed |  |   | Premium |   |  | Consideration(1) |        
|                                                          |  |             |            |            |         |   |         |                  |  |   |          |  |       |            |        |          |        |   |          |         |  |   |         |   |  |                  |        
|Ardentech Court                                           |  |             | 11/18/2004 |            |         | $ | 8,114   |                  |  | $ |         |  |       | $          | 3,556  |          |        | $ | 116      |         |  | $ | (600    | ) |  | $                | (4,835  | ) |  | $ | 622   |  |  | $ | 6,973   | 
|Balboa Avenue(1)                                          |  |             | 8/13/2004  |            |         |   | 10,809  |                  |  |   |         |  |       |            | 1,026  |          |        |   | 65       |         |  |   | (317    | ) |  |                  |        |   |  |   |      |  |  |   | 11,583  | 
|Bayshore Boulevard                                        |  |             | 8/17/2004  |            |         |   | 26,798  |                  |  |   | 6,047    |  |       |            | 4,838  |          |        |   | 787      |         |  |   | (1,586  | ) |  |                  |        |   |  |   |      |  |  |   | 36,884  | 
|Beckley Street                                            |  |             | 12/17/2004 |            |         |   | 19,052  |                  |  |   |         |  |       |            |       |          |        |   |         |         |  |   | (3,860  | ) |  |                  |        |   |  |   |      |  |  |   | 15,192  | 
|Bernardo Center Drive(1)                                  |  |             | 8/13/2004  |            |         |   | 16,294  |                  |  |   | 383      |  |       |            | 2,554  |          |        |   | 144      |         |  |   |        |   |  |                  |        |   |  |   |      |  |  |   | 19,375  | 
|Bridgeview Technology Park I                              |  |             | 9/10/2004  |            |         |   | 16,031  |                  |  |   | 924      |  |       |            | 4,245  |          |        |   | 293      |         |  |   | (3,258  | ) |  |                  | (11,856 | ) |  |   | 1,932 |  |  |   | 8,311   | 
|Eisenhower Road(1)                                        |  |             | 8/13/2004  |            |         |   | 3,030   |                  |  |   |         |  |       |            | 704    |          |        |   | 26       |         |  |   |        |   |  |                  | (2,270  | ) |  |   | 87    |  |  |   | 1,577   | 
|Elliott Avenue                                            |  |             | 8/24/2004  |            |         |   | 49,030  |                  |  |   |         |  |       |            | 5,070  |          |        |   | 406      |         |  |   |        |   |  |                  | (17,145 | ) |  |   | 1,261 |  |  |   | 38,622  | 
|Industrial Road(1)                                        |  |             | 8/17/2004  |            |         |   | 53,718  |                  |  |   | 691      |  |       |            | 438    |          |        |   | 27       |         |  |   |        |   |  |                  |        |   |  |   |      |  |  |   | 54,874  | 
|King of Prussia                                           |  |             | 8/11/2004  |            |         |   | 81,044  |                  |  |   |         |  |       |            | 7,448  |          |        |   |         |         |  |   |        |   |  |                  |        |   |  |   |      |  |  |   | 88,492  | 
|Landmark at Eastview                                      |  |             | 8/12/2004  |            |         |   | 76,206  |                  |  |   | 429      |  |       |            | 17,193 |          |        |   | 5,667    |         |  |   | (83     | ) |  |                  |        |   |  |   |      |  |  |   | 99,412  | 
|Monte Villa Parkway                                       |  |             | 8/17/2004  |            |         |   | 11,731  |                  |  |   |         |  |       |            | 4,113  |          |        |   | 227      |         |  |   |        |   |  |                  |        |   |  |   |      |  |  |   | 16,071  | 
|San Diego Science Center                                  |  |             | 10/21/2004 |            |         |   | 25,746  |                  |  |   | 70       |  |       |            | 3,745  |          |        |   | 286      |         |  |   | (48     | ) |  |                  |        |   |  |   |      |  |  |   | 29,799  | 
|Science Center Drive(1)                                   |  |             | 9/24/2004  |            |         |   | 18,995  |                  |  |   |         |  |       |            | 2,733  |          |        |   | 107      |         |  |   | (1,722  | ) |  |                  | (11,729 | ) |  |   | 1,740 |  |  |   | 10,124  | 
|Towne Centre Drive                                        |  |             | 8/12/2004  |            |         |   | 42,224  |                  |  |   |         |  |       |            |       |          |        |   |         |         |  |   |        |   |  |                  |        |   |  |   |      |  |  |   | 42,224  | 
|Tributary Street                                          |  |             | 12/17/2004 |            |         |   | 12,645  |                  |  |   |         |  |       |            |       |          |        |   |         |         |  |   | (2,518  | ) |  |                  |        |   |  |   |      |  |  |   | 10,127  | 
|                                                          |  |             |            |            |         |   |         |                  |  |   |          |  |       |            |        |          |        |   |          |         |  |   |         |   |  |                  |        
|                                                          |  |             |            |            |         | $ | 471,467 |                  |  | $ | 8,544    |  |       | $          | 57,663 |          |        | $ | 8,151    |         |  | $ | (13,992 | ) |  | $                | (47,835 | ) |  | $ | 5,642 |  |  | $ | 489,640 | 
|                                                          |  |             |            |            |         |   |         |                  |  |   |          |  |       |            |        |          |        |   |          |         |  |   |         |   |  |                  |        
|Weighted average intangible amortization life (in months) |  |             |            |            |         |   |        |                  |  |   | 82       |  |       |            | 71     |          |        |   | 67       |         |  |   | 151     |   |  |                  |        |   |  |   | 71    |  |  |   |        | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Company acquired Balboa Avenue, Bernardo Center Drive,
    Eisenhower Road, Industrial Road (Predecessor), Science Center
    Drive and a general partnership interest in McKellar Court from
    affiliates and others for an aggregate of approximately
    2.9 million Units, aggregate cash consideration of
    approximately $77.0 million and the assumption of
    $14.0 million of debt (excluding $1.8 million of
    premium). The interest in the Predecessor was recorded at
    historic cost. The interests in the other properties acquired
    from affiliates were recorded in accordance with SFAS 141.
    McKellar Court is accounted for under the equity method.



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

Share-Based Payment


Accounting for Conditional Asset Retirement Obligations


78



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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)




Accounting
Changes and Error Corrections, a Replacement of APB Opinion
No. 20 and FASB Statement No. 3 Accounting Changes


Determining Whether a General Partner, or the
General Partners as a Group, Controls a Limited Partnership or
Similar Entity When the Limited Partners Have Certain Rights 04-5), 04-5 04-5 04-5 04-5




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



79



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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










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



|                                        |  |                    |        |   |              |   |        |         |  |   |          |   |  |   |        |  
|--------------------------------------- |  | ------------------ | ------ | - | ------------ | - | ------ | ------- |  | - | -------- | - |  | - | ------ | -
|                                        |  | 2005 Quarter Ended |       
|                                        |  |                    |       
|                                        |  | December 31        |        |   | September 30 |   |        | June 30 |  |   | March 31 |  
|                                        |  |                    |        |   |              |   |        |         |  |   |          |  
|Total revenues                          |  | $                  | 44,492 |   |              | $ | 41,330 |         |  | $ | 28,529   |   |  | $ | 24,505 |  
|Income/(loss) before minority interests |  | $                  | 4,804  |   |              | $ | 5,479  |         |  | $ | 1,505    |   |  | $ | 6,265  |  
|Minority interests                      |  | $                  | (235   | ) |              | $ | (278   | )       |  |   | (65      | ) |  | $ | (429   | )
|Net income/(loss)                       |  | $                  | 4,569  |   |              | $ | 5,201  |         |  | $ | 1,440    |   |  | $ | 5,836  |  
|Net income per share  basic            |  | $                  | 0.10   |   |              | $ | 0.11   |         |  | $ | 0.05     |   |  | $ | 0.19   |  
|Net income per share  diluted          |  | $                  | 0.10   |   |              | $ | 0.11   |         |  | $ | 0.05     |   |  | $ | 0.19   |  

|                                        |  |                              |        |              |                |   |           |           |  |   |         |   |  |          |       |  |  |   |       | 
|--------------------------------------- |  | ---------------------------- | ------ | ------------ | -------------- | - | --------- | --------- |  | - | ------- | - |  | -------- | ----- |  |  | - | ----- | 
|                                        |  | 2004 Quarter Ended           |       
|                                        |  |                              |       
|                                        |  | BioMed Realty Trust, Inc.(1) |        |              | Predecessor(2) |  
|                                        |  |                              |        |              |                |  
|                                        |  |                              |        | August 11 to |                |   | July 1 to |           |  |  
|                                        |  | 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      |           |  | $ |        |   |  |          |      |  |  | $ |      | 






|    |                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------
|(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.

80



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BIOMED REALTY TRUST, INC. AND


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


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







SCHEDULE III  REAL ESTATE AND ACCUMULATED
DEPRECIATION


As of December 31, 2005


(In thousands)


|                              |  |           |           |     |              |              |         |      |           |   |                                           |             |  |              |            |  |                |   |         |        |        |   |        |        |  |              |         |             |       |   |        |              |  |   |         |  |  |   |           |  |  |   |         |   |  |   |           | 
|----------------------------- |  | --------- | --------- | --- | ------------ | ------------ | ------- | ---- | --------- | - | ----------------------------------------- | ----------- |  | ------------ | ---------- |  | -------------- | - | ------- | ------ | ------ | - | ------ | ------ |  | ------------ | ------- | ----------- | ----- | - | ------ | ------------ |  | - | ------- |  |  | - | --------- |  |  | - | ------- | - |  | - | --------- | 
|                              |  |           |           |     |              | Initial Cost |         |      |           |   | Gross amount carried at December 31, 2005 |             |  |              |            | 
|                              |  |           |           |     |              |              |         |      | Costs     |   |                                           |             |  |              |            |  |               
|                              |  | Year      |           |     |              |              |         |      | Buildings |   |                                           | Capitalized |  |              |            |  | Buildings      |   |         |        |        |   |        |       
|                              |  | Built/    |           |     |              |              |         |      | Ground    |   |                                           | and         |  |              | Subsequent |  |                |   |         | Ground |        |   | and    |        |  |              |         | Accumulated |       |   |       
|Property                      |  | Renovated |           |     | Encumbrances |              |         | Land |           |   | Lease                                     |             |  | Improvements |            |  | to Acquisition |   |         | Land   |        |   | Lease  |        |  | Improvements |         |             | Total |   |        | Depreciation |  |   | Net     | 
|                              |  |           |           |     |              |              |         |      |           |   |                                           |             |  |              |            |  |                |   |         |        |        |   |        |        |  |              |         |             |       |   |        |              |  |   |         | 
|                              |  |           |           | (1) |              |              |         |      |           |   |                                           |             |  |              |            |  |                |   |         |        | (2)(4) |   |        | (3)(4) |  |              |        
|Albany Street                 |  |           | 1922/1998 |     |              | $            |        |      |           | $ | 1,942                                     |             |  | $            |           |  |                | $ | 31,293  |        |        | $ |       |        |  | $            | 1,942   |             |       | $ |       |              |  | $ | 31,293  |  |  | $ | 33,235    |  |  | $ | (456    | ) |  | $ | 32,779    | 
|Ardentech Court               |  |           | 1997/2001 |     |              |              | 4,746   |      |           |   | 2,742                                     |             |  |              |           |  |                |   | 5,379   |        |        |   |       |        |  |              | 2,742   |             |       |   |       |              |  |   | 5,379   |  |  |   | 8,121     |  |  |   | (151    | ) |  |   | 7,970     | 
|Balboa Avenue                 |  |           | 1968/2000 |     |              |              |        |      |           |   | 1,316                                     |             |  |              |           |  |                |   | 9,493   |        |        |   | 67     |        |  |              | 1,316   |             |       |   |       |              |  |   | 9,560   |  |  |   | 10,876    |  |  |   | (336    | ) |  |   | 10,540    | 
|Bayshore Boulevard            |  |           | 2000      |     |              |              | 16,107  |      |           |   | 3,667                                     |             |  |              |           |  |                |   | 22,661  |        |        |   | 2,969  |        |  |              | 3,667   |             |       |   |       |              |  |   | 25,630  |  |  |   | 29,297    |  |  |   | (828    | ) |  |   | 28,469    | 
|Beckley Street                |  |           | 1999      |     |              |              |        |      |           |   | 1,480                                     |             |  |              |           |  |                |   | 17,590  |        |        |   |       |        |  |              | 1,480   |             |       |   |       |              |  |   | 17,590  |  |  |   | 19,070    |  |  |   | (458    | ) |  |   | 18,612    | 
|Bernardo Center Drive         |  |           | 1974/1992 |     |              |              |        |      |           |   | 2,580                                     |             |  |              |           |  |                |   | 13,714  |        |        |   |       |        |  |              | 2,580   |             |       |   |       |              |  |   | 13,714  |  |  |   | 16,294    |  |  |   | (471    | ) |  |   | 15,823    | 
|Bridgeview Technology Park    |  |           | 1977/2002 |     |              |              | 11,732  |      |           |   | 1,315                                     |             |  |              |           |  |                |   | 14,716  |        |        |   | 2,451  |        |  |              | 1,315   |             |       |   |       |              |  |   | 17,167  |  |  |   | 18,482    |  |  |   | (506    | ) |  |   | 17,976    | 
|Bridgeview Technology Park II |  |           | 1977/2002 |     |              |              |        |      |           |   | 1,522                                     |             |  |              |           |  |                |   | 13,066  |        |        |   |       |        |  |              | 1,522   |             |       |   |       |              |  |   | 13,066  |  |  |   | 14,588    |  |  |   | (259    | ) |  |   | 14,329    | 
|Colorow Drive                 |  |           | 2004      |     |              |              |        |      |           |   |                                          |             |  |              |           |  |                |   | 19,369  |        |        |   |       |        |  |              |        |             |       |   |       |              |  |   | 19,369  |  |  |   | 19,369    |  |  |   |        |   |  |   | 19,369    | 
|Coolidge Avenue               |  |           | 1962/1999 |     |              |              |        |      |           |   | 2,760                                     |             |  |              |           |  |                |   | 7,102   |        |        |   |       |        |  |              | 2,760   |             |       |   |       |              |  |   | 7,102   |  |  |   | 9,862     |  |  |   | (126    | ) |  |   | 9,736     | 
|Dumbarton Circle              |  |           | 1990      |     |              |              |        |      |           |   | 2,723                                     |             |  |              |           |  |                |   | 5,096   |        |        |   |       |        |  |              | 2,723   |             |       |   |       |              |  |   | 5,096   |  |  |   | 7,819     |  |  |   | (235    | ) |  |   | 7,584     | 
|Eccles Avenue                 |  |           | 1965/1995 |     |              |              |        |      |           |   | 21,257                                    |             |  |              |           |  |                |   | 599     |        |        |   |       |        |  |              | 21,257  |             |       |   |       |              |  |   | 599     |  |  |   | 21,856    |  |  |   | (24     | ) |  |   | 21,832    | 
|Eisenhower Road               |  |           | 1973/2000 |     |              |              | 2,211   |      |           |   | 416                                       |             |  |              |           |  |                |   | 2,614   |        |        |   |       |        |  |              | 416     |             |       |   |       |              |  |   | 2,614   |  |  |   | 3,030     |  |  |   | (90     | ) |  |   | 2,940     | 
|Elliott Avenue                |  |           | 1925/2004 |     |              |              | 16,526  |      |           |   | 10,124                                    |             |  |              |           |  |                |   | 38,911  |        |        |   | 39     |        |  |              | 10,124  |             |       |   |       |              |  |   | 38,950  |  |  |   | 49,074    |  |  |   | (1,337  | ) |  |   | 47,737    | 
|21 Erie Street                |  |           | 1925/2004 |     |              |              |        |      |           |   | 3,366                                     |             |  |              |           |  |                |   | 18,372  |        |        |   | 18     |        |  |              | 3,366   |             |       |   |       |              |  |   | 18,390  |  |  |   | 21,756    |  |  |   | (268    | ) |  |   | 21,488    | 
|40 Erie Street                |  |           | 1996      |     |              |              | 19,575  |      |           |   | 7,593                                     |             |  |              |           |  |                |   | 33,778  |        |        |   |       |        |  |              | 7,593   |             |       |   |       |              |  |   | 33,778  |  |  |   | 41,371    |  |  |   | (493    | ) |  |   | 40,878    | 
|Fairview Avenue               |  |           | N/A       |     |              |              |        |      |           |   |                                          |             |  |              |           |  |                |   | 694     |        |        |   |       |        |  |              |        |             |       |   |       |              |  |   | 694     |  |  |   | 694       |  |  |   |        |   |  |   | 694       | 
|Faraday Avenue                |  |           | 1986      |     |              |              |        |      |           |   | 1,370                                     |             |  |              |           |  |                |   | 7,190   |        |        |   |       |        |  |              | 1,370   |             |       |   |       |              |  |   | 7,190   |  |  |   | 8,560     |  |  |   | (46     | ) |  |   | 8,514     | 
|Fresh Pond Research Park      |  |           | 1948/2002 |     |              |              |        |      |           |   | 3,500                                     |             |  |              |           |  |                |   | 18,322  |        |        |   | 38     |        |  |              | 3,500   |             |       |   |       |              |  |   | 18,360  |  |  |   | 21,860    |  |  |   | (324    | ) |  |   | 21,536    | 
|George Patterson Boulevard    |  |           | 1996/2005 |     |              |              |        |      |           |   | 1,575                                     |             |  |              |           |  |                |   | 11,426  |        |        |   |       |        |  |              | 1,575   |             |       |   |       |              |  |   | 11,426  |  |  |   | 13,001    |  |  |   | (24     | ) |  |   | 12,977    | 
|Graphics Drive                |  |           | 1992/2001 |     |              |              |        |      |           |   | 800                                       |             |  |              |           |  |                |   | 6,577   |        |        |   | 125    |        |  |              | 800     |             |       |   |       |              |  |   | 6,702   |  |  |   | 7,502     |  |  |   | (130    | ) |  |   | 7,372     | 
|Industrial Road               |  |           | 2001/2005 |     |              |              |        |      |           |   | 12,000                                    |             |  |              |           |  |                |   | 41,718  |        |        |   | 12,874 |        |  |              | 12,000  |             |       |   |       |              |  |   | 54,592  |  |  |   | 66,592    |  |  |   | (1,939  | ) |  |   | 64,653    | 
|Kaiser Drive                  |  |           | 1990      |     |              |              |        |      |           |   | 3,430                                     |             |  |              |           |  |                |   | 6,093   |        |        |   | 300    |        |  |              | 3,430   |             |       |   |       |              |  |   | 6,393   |  |  |   | 9,823     |  |  |   |        |   |  |   | 9,823     | 
|Kendall Street                |  |           | 2002      |     |              |              | 72,395  |      |           |   | 3,572                                     |             |  |              |           |  |                |   | 166,308 |        |        |   | 406    |        |  |              | 3,572   |             |       |   |       |              |  |   | 166,714 |  |  |   | 170,286   |  |  |   | (2,441  | ) |  |   | 167,845   | 
|King of Prussia Road          |  |           | 1954/2004 |     |              |              |        |      |           |   | 12,813                                    |             |  |              |           |  |                |   | 67,333  |        |        |   | 37     |        |  |              | 12,813  |             |       |   |       |              |  |   | 67,370  |  |  |   | 80,183    |  |  |   | (2,340  | ) |  |   | 77,843    | 
|Landmark at Eastview          |  |           | 1958/1999 |     |              |              |        |      |           |   |                                          |             |  |              | 14,210     |  |                |   | 61,996  |        |        |   | 3,921  |        |  |              | 82      |             |       |   | 14,210 |              |  |   | 65,835  |  |  |   | 80,127    |  |  |   | (2,458  | ) |  |   | 77,669    | 
|Lucent Drive                  |  |           | 2004      |     |              |              | 5,899   |      |           |   | 265                                       |             |  |              |           |  |                |   | 5,888   |        |        |   |       |        |  |              | 265     |             |       |   |       |              |  |   | 5,888   |  |  |   | 6,153     |  |  |   | (86     | ) |  |   | 6,067     | 
|Monte Villa Parkway           |  |           | 1996/2002 |     |              |              | 9,805   |      |           |   | 1,020                                     |             |  |              |           |  |                |   | 10,711  |        |        |   |       |        |  |              | 1,020   |             |       |   |       |              |  |   | 10,711  |  |  |   | 11,731    |  |  |   | (368    | ) |  |   | 11,363    | 
|Nancy Ridge Drive             |  |           | 1983/2001 |     |              |              | 6,952   |      |           |   | 2,344                                     |             |  |              |           |  |                |   | 10,063  |        |        |   |       |        |  |              | 2,344   |             |       |   |       |              |  |   | 10,063  |  |  |   | 12,407    |  |  |   | (178    | ) |  |   | 12,229    | 
|Phoenixville Pike             |  |           | 1989      |     |              |              |        |      |           |   | 1,204                                     |             |  |              |           |  |                |   | 10,879  |        |        |   | 228    |        |  |              | 1,204   |             |       |   |       |              |  |   | 11,107  |  |  |   | 12,311    |  |  |   | (197    | ) |  |   | 12,114    | 
|San Diego Science Center      |  |           | 1973/2002 |     |              |              |        |      |           |   | 3,871                                     |             |  |              |           |  |                |   | 21,875  |        |        |   | 34     |        |  |              | 3,871   |             |       |   |       |              |  |   | 21,909  |  |  |   | 25,780    |  |  |   | (661    | ) |  |   | 25,119    | 
|Science Center Drive          |  |           | 1995      |     |              |              | 11,577  |      |           |   | 2,630                                     |             |  |              |           |  |                |   | 16,365  |        |        |   | 75     |        |  |              | 2,630   |             |       |   |       |              |  |   | 16,440  |  |  |   | 19,070    |  |  |   | (528    | ) |  |   | 18,542    | 
|Sidney Street                 |  |           | 2000      |     |              |              | 31,426  |      |           |   | 7,580                                     |             |  |              |           |  |                |   | 50,488  |        |        |   |       |        |  |              | 7,580   |             |       |   |       |              |  |   | 50,488  |  |  |   | 58,068    |  |  |   | (738    | ) |  |   | 57,330    | 
|Towne Centre Drive            |  |           | 2001      |     |              |              | 22,396  |      |           |   | 10,720                                    |             |  |              |           |  |                |   | 31,504  |        |        |   | 24     |        |  |              | 10,720  |             |       |   |       |              |  |   | 31,528  |  |  |   | 42,248    |  |  |   | (1,082  | ) |  |   | 41,166    | 
|Tributary Street              |  |           | 1983/1998 |     |              |              |        |      |           |   | 2,060                                     |             |  |              |           |  |                |   | 10,597  |        |        |   |       |        |  |              | 2,060   |             |       |   |       |              |  |   | 10,597  |  |  |   | 12,657    |  |  |   | (276    | ) |  |   | 12,381    | 
|Uniqema Boulevard             |  |           | 1999      |     |              |              |        |      |           |   | 1,350                                     |             |  |              |           |  |                |   | 13,218  |        |        |   |       |        |  |              | 1,350   |             |       |   |       |              |  |   | 13,218  |  |  |   | 14,568    |  |  |   | (82     | ) |  |   | 14,486    | 
|Vassar Street                 |  |           | 1950/1998 |     |              |              |        |      |           |   | 2,040                                     |             |  |              |           |  |                |   | 13,841  |        |        |   |       |        |  |              | 2,040   |             |       |   |       |              |  |   | 13,841  |  |  |   | 15,881    |  |  |   | (202    | ) |  |   | 15,679    | 
|Waples                        |  |           | 1983/2005 |     |              |              |        |      |           |   | 2,470                                     |             |  |              |           |  |                |   | 2,907   |        |        |   | 6,192  |        |  |              | 2,470   |             |       |   |       |              |  |   | 9,099   |  |  |   | 11,569    |  |  |   |        |   |  |   | 11,569    | 
|West Kendall Square           |  |           | 2002      |     |              |              |        |      |           |   | 4,922                                     |             |  |              |           |  |                |   | 121,182 |        |        |   |       |        |  |              | 4,922   |             |       |   |       |              |  |   | 121,182 |  |  |   | 126,104   |  |  |   | (1,766  | ) |  |   | 124,338   | 
|                              |  |           |           |     |              |              |         |      |           |   |                                           |             |  |              |            |  |                |   |         |        |        |   |        |        |  |              |         |             |       |   |        |              |  |   |         | 
|Total                         |  |           |           |     |              | $            | 231,347 |      |           | $ | 146,339                                   |             |  | $            | 14,210     |  |                | $ | 960,928 |        |        | $ | 29,798 |        |  | $            | 146,421 |             |       | $ | 14,210 |              |  | $ | 990,644 |  |  | $ | 1,151,275 |  |  | $ | (21,904 | ) |  | $ | 1,129,371 | 
|                              |  |           |           |     |              |              |         |      |           |   |                                           |             |  |              |            |  |                |   |         |        |        |   |        |        |  |              |         |             |       |   |        |              |  |   |         | 

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|    |                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes unamortized debt premium of $14,886.                                                                                                                                               
|   
|(2) | The aggregate gross cost of the Companys rental property
    for federal income tax purposes approximated $1,260,226 as of
    December 31, 2005 (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.
|   
|(4) | The following table reconciles the historical cost and related
    accumulated depreciation as follows (in thousands):                                                                      

|                           |                                     |                              |   |            |                |   |            |            |         |   |              |        |      |   |   |        |      |  
|-------------------------- | ----------------------------------- | ---------------------------- | - | ---------- | -------------- | - | ---------- | ---------- | ------- | - | ------------ | ------ | ---- | - | - | ------ | ---- | -
|                           |                                     | BioMed Realty Trust, Inc.(5) |   |            | Predecessor(5) |  
|                           |                                     |                              |   |            |                |  
|                           |                                     |                              |   | August 11, |                |   | January 1, |            |         |  
|                           |                                     | Year Ended                   |   |            | thru           |   |            | thru       |         |   |             
|                           |                                     | December 31,                 |   |            | December 31,   |   |            | August 17, |         |   | December 31, |       
|                           |                                     | 2005                         |   |            | 2004           |   |            | 2004       |         |   | 2003         |       
|                           |                                     |                              |   |            |                |   |            |            |         |   |              |       
|Investment in real estate: |                                     |                              |   |            |                |   |            |            |         |   |              |        |      |   |   |       
|                           | Balance at beginning of period/year |                              | $ | 471,799    |                |   | $          |           |         |   | $            | 49,588 |      |   | $ | 49,483 |     
|                           |                                     | Property acquisitions        |   |            | 650,642        |   |            |            | 471,467 |   |              |        |     |   |   |        |     |  
|                           |                                     | Improvements                 |   |            | 28,834         |   |            |            | 332     |   |              |        |     |   |   |        | 105  |  
|                           |                                     |                              |   |            |                |   |            |            |         |   |              |       
|                           | Balance at end of period/year       |                              | $ | 1,151,275  |                |   | $          | 471,799    |         |   | $            | 49,588 |      |   | $ | 49,588 |     
|                           |                                     |                              |   |            |                |   |            |            |         |   |              |       
|Accumulated Depreciation:  |                                     |                              |   |            |                |   |            |            |         |   |              |        |      |   |   |       
|                           | Balance at beginning of period/year |                              | $ | (3,269     | )              |   | $          |           |         |   | $            | (2,563 | )    |   | $ | (1,630 | )   
|                           |                                     | Depreciation expense         |   |            | (18,635        | ) |            |            | (3,269  | ) |              |        | (586 | ) |   |        | (933 | )
|                           |                                     |                              |   |            |                |   |            |            |         |   |              |       
|                           | Balance at end of period/year       |                              | $ | (21,904    | )              |   | $          | (3,269     | )       |   | $            | (3,149 | )    |   | $ | (2,563 | )   
|                           |                                     |                              |   |            |                |   |            |            |         |   |              |       



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | 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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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








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

Evaluation of Disclosure Controls and Procedures


13a-15(b)


Managements Report on Internal Control Over Financial
Reporting






13a-15(f)


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Changes in Internal Control









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






PART III







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

10-K,




10-K,


10-K,







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








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



84



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








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






PART IV







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



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

10-K:


|                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |    | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                                                                                                                                                                                                                                                                                                                                             |  | Page |   
|                                                                                                                                                                                                                                                                                                                                                                                                                             |  |      |   
|Reports of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                                                                                                     |  |      | 49 | 
|Consolidated Balance Sheets of BioMed Realty Trust, Inc. as of
    December 31, 2005 and 2004                                                                                                                                                                                                                                                                                                                                |  |      | 52 | 
|Consolidated Statements of Income of BioMed Realty Trust, Inc.
    for the year ended December 31, 2005 and for the period
    from August 11, 2004 through December 31, 2004, and
    Statements of Income of Inhale 201 Industrial Road, L.P.
    (Predecessor) for the period from January 1, 2004 through
    August 17, 2004 and for the year ended December 31,
    2003                                               |  |      | 53 | 
|Consolidated Statements of Stockholders Equity of BioMed
    Realty Trust, Inc. for the year ended December 31, 2005 and
    for the period from August 11, 2004 through
    December 31, 2004, and Statements of Owners Equity of
    Inhale 201 Industrial Road, L.P. (Predecessor) for the period
    from January 1, 2004 through August 17, 2004 and for
    the year ended December 31, 2003                         |  |      | 54 | 
|Consolidated Statements of Comprehensive Income of BioMed Realty
    Trust, Inc. for the year ended December 31, 2005 and for
    the period from August 11, 2004 through December 31,
    2004                                                                                                                                                                                                                              |  |      | 55 | 
|Consolidated Statement of Cash Flows of BioMed Realty Trust,
    Inc. for the year ended December 31, 2005 and Consolidated
    and Combined Statement of Cash Flows of BioMed Realty Trust,
    Inc. and Inhale 201 Industrial Road, L.P. (Predecessor) for the
    year ended December 31, 2004 and Statement of Cash Flows of
    Inhale 201 Industrial Road, L.P. (Predecessor) for the year
    ended December 31, 2003 |  |      | 56 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                   |  |      | 58 | 
|Financial Statement  Schedule III                                                                                                                                                                                                                                                                                                                                                                                           |  |      | 81 | 



|    |         
|--- | --------
|(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)

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|        |    |             |  |                                                                                                                                                                                                                                      
|------- | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|       
|        | 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)                                                                                                                     
|       
|        | 10 | .9          |  | Employment Agreement between BioMed Realty Trust, Inc. and
    Matthew G. McDevitt dated as of August 6, 2004.(1)                                                                                                                    
|       
|        | 10 | .10         |  | First Amendment to Employment Agreement between BioMed Realty
    Trust, Inc. and Matthew G. McDevitt dated as of
    February 27, 2006.(4)                                                                                          
|       
|        | 10 | .11         |  | Contribution Agreement between Alan D. Gold and BioMed Realty,
    L.P. dated as of May 4, 2004.(2)                                                                                                                                  
|       
|        | 10 | .12         |  | Contribution Agreement between Gary A. Kreitzer and BioMed
    Realty, L.P. dated as of May 4, 2004.(2)                                                                                                                              
|       
|        | 10 | .13         |  | Contribution Agreement between John F. Wilson, II and
    BioMed Realty, L.P. dated as of May 4, 2004.(2)                                                                                                                            
|       
|        | 10 | .14         |  | Contribution Agreement between Matthew G. McDevitt and BioMed
    Realty, L.P. dated as of May 4, 2004.(2)                                                                                                                           
|       
|        | 10 | .15         |  | Form of Contribution Agreement between the additional
    contributors and BioMed Realty, L.P. dated as of May 4,
    2004.(2)                                                                                                       
|       
|        | 10 | .16         |  | Stock Purchase Warrant issued to Raymond James &
    Associates, Inc. dated as of August 11, 2004.(4)                                                                                                                                
|       
|        | 10 | .17         |  | 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 | .18         |  | 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 | .19         |  | 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 | .20         |  | 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 | .21         |  | 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 | .22         |  | 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 | .23         |  | Agreement of Purchase and Sale between Elliott Park LLC and
    BMR-201 Elliott Avenue LLC dated as of June 3, 2004.(2)                                                                                                              
|       
|        | 10 | .24         |  | 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 | .25         |  | 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)               

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|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                          
|------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|       
|        | 10 | .26         |  | Radnor Technology and Research Center Lease between Radnor
    Properties-145 KOP, L.P. and Centocor, Inc. dated as of
    March 8, 2002.(2)                                                                                                                                                                                                                                             
|       
|        | 10 | .27         |  | 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 | .28         |  | 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 | .29         |  | 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 | .30         |  | 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 | .31         |  | 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)                                                                                                                                                                                                               
|       
|        | 10 | .32         |  | 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 | .33         |  | 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 | .34         |  | 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.(5)                                                                                                                                                               
|       
|        | 10 | .35         |  | 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.(5)                                                                                                                                                                                                       
|       
|        | 10 | .36         |  | 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.(5)                                                                                                                                                                                                 
|       
|        | 10 | .37         |  | 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.(5)                                                                                                                                                                                                  
|       
|        | 10 | .38         |  | 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.(5)                                                                                                                                                                                                      
|       
|        | 10 | .39         |  | 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.(5)                                                                                                                                                                                                
|       
|        | 10 | .40         |  | 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.(5)                                                                                                                                                                                                 
|       
|        | 10 | .41         |  | Fraudulent Conveyance Indemnity Agreement dated
    December 28, 2004 by BioMed Realty Trust, Inc. in favor of
    The Northwestern Mutual Life Insurance Company.(5)                                                                                                                                                                                                                    
|       
|        | 10 | .42         |  | BioMed Realty 401(k) Retirement Savings Plan.(3)                                                                                                                                                                                                                                                                                                                                         
|       
|        | 10 | .43         |  | First Amendment to the BioMed Realty 401(k) Retirement Savings
    Plan.(3)                                                                                                                                                                                                                                                                                                              
|       
|        | 10 | .44         |  | Second Amendment to the BioMed Realty 401(k) Retirement Savings
    Plan.(3)                                                                                                                                                                                                                                                                                                             
|       
|        | 10 | .45         |  | Good Faith Amendment to the BioMed Realty 401(k) Retirement
    Savings Plan.(4)                                                                                                                                                                                                                                                                                                         
|       
|        | 10 | .46         |  | Third Amendment to the BioMed Realty 401(k) Retirement Savings
    Plan.(4)                                                                                                                                                                                                                                                                                                              
|       
|        | 10 | .47         |  | Agreement for Purchase of Real Estate, dated as of
    April 15, 2005, between BioMed Realty, L.P. and The Lyme
    Timber Company.(6)                                                                                                                                                                                                                                                   
|       
|        | 10 | .48         |  | Radnor Technology and Research Center Office and Cafeteria
    Lease, dated as of June 21, 2002, between BMR-145 King of
    Prussia Road LP and Centocor, Inc.(7)                                                                                                                                                                                                                       
|       
|        | 10 | .49         |  | First Amendment to Lease, dated as of January 19, 2004,
    between BMR-145 King of Prussia Road LP and Centocor, Inc.(7)                                                                                                                                                                                                                                                                
|       
|        | 10 | .50         |  | Second Amendment to Radnor Technology and Research Center Office
    and Cafeteria Lease, dated as of April 19, 2005, between
    BMR-145 King of Prussia Road LP and Centocor, Inc.(7)                                                                                                                                                                                                  

87



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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                                                                                   
|------- | -- | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|       
|        | 10 | .51         |  | Secured Term Loan Agreement, dated as of May 31, 2005, by
    and among BioMed Realty, L.P., KeyBank National Association, as
    Administrative Agent, and certain lenders party thereto.(8)                                                                     
|       
|        | 10 | .52         |  | Form of Secured Term Loan Note.(8)                                                                                                                                                                                                                                
|       
|        | 10 | .53         |  | Unsecured Credit Agreement, dated as of May 31, 2005, by
    and among BioMed Realty, L.P., KeyBank National Association, as
    Administrative Agent, and certain lenders party thereto.(8)                                                                      
|       
|        | 10 | .54         |  | Form of Line Note under Unsecured Credit Agreement.(8)                                                                                                                                                                                                            
|       
|        | 10 | .55         |  | Form of Term Note under Unsecured Credit Agreement.(8)                                                                                                                                                                                                            
|       
|        | 10 | .56         |  | Assumption, Consent and Loan Modification Agreement, dated as of
    May 31, 2005, by and among KS Parcel D, LLC, The Lyme
    Timber Company, BioMed Realty Trust, Inc., BMR  500
    Kendall Street LLC and The Variable Annuity Life Insurance
    Company.(8)
|       
|        | 10 | .57         |  | Promissory Note, dated as of November 21, 2003, to The
    Variable Annuity Life Insurance Company.(8)                                                                                                                                                            
|       
|        | 10 | .58         |  | Mortgage, Security Agreement, Fixture Filing, Financing
    Statement and Assignment of Leases and Rents, dated as of
    November 21, 2003, in favor of The Variable Annuity Life
    Insurance Company.(8)                                                      
|       
|        | 10 | .59         |  | Lease, dated as of August 28, 2000, by and between Kendall
    Square, LLC and Genzyme Corporation.(8)                                                                                                                                                            
|       
|        | 10 | .60         |  | First Amendment to Lease, dated as of August 1, 2003, by
    and between Kendall Square, LLC and Genzyme Corporation.(8)                                                                                                                                          
|       
|        | 10 | .61         |  | Lease, dated as of January 18, 2001, by and between Kendall
    Square, LLC and Vertex Pharmaceuticals Incorporated.(8)                                                                                                                                           
|       
|        | 10 | .62         |  | First Amendment to Lease, dated as of May 9, 2002, by and
    between Kendall Square, LLC and Vertex Pharmaceuticals
    Incorporated.(8)                                                                                                                         
|       
|        | 10 | .63         |  | Second Amendment to Lease, dated as of September 16, 2003,
    by and between KS Parcel A, LLC, as successor to Kendall Square,
    LLC, and Vertex Pharmaceuticals Incorporated.(8)                                                                              
|       
|        | 10 | .64         |  | Third Amendment to Lease, dated as of December 22, 2003, by
    and between KS Parcel A, LLC, as successor to Kendall Square,
    LLC, and Vertex Pharmaceuticals Incorporated.(8)                                                                                
|       
|        | 10 | .65         |  | Fourth Amendment to Lease, dated as of September 30, 2004,
    by and between KS Parcel A, LLC, as successor to Kendall Square,
    LLC, and Vertex Pharmaceuticals Incorporated.(8)                                                                              
|       
|        | 10 | .66         |  | Fifth Amendment to Lease, dated as of April 15, 2005, by
    and between KS Parcel A, LLC, as successor to Kendall Square,
    LLC, and Vertex Pharmaceuticals Incorporated.(8)                                                                                   
|       
|        | 10 | .67         |  | Sixth Amendment to Lease, dated as of September 23, 2005,
    by and between BMR-675 West Kendall Street LLC, as
    successor to Kendall Square, LLC, and Vertex Pharmaceuticals
    Incorporated.(9)                                                            
|       
|        | 10 | .68         |  | Seventh Amendment to Lease, dated as of January 23, 2006,
    by and between BMR-675 West Kendall Street LLC, as
    successor to Kendall Square, LLC, and Vertex Pharmaceuticals
    Incorporated.(4)                                                            
|       
|        | 10 | .69         |  | Lease, dated as of September 17, 1999, by and between
    Trustees of Fort Washington Realty Trust and Vertex
    Pharmaceuticals Incorporated.(8)                                                                                                                
|       
|        | 10 | .70         |  | Lease, dated March 3, 1995, by and between
    Fort Washington Limited Partnership and Vertex
    Pharmaceuticals Incorporated.(8)                                                                                                                                
|       
|        | 10 | .71         |  | First Amendment to Lease, dated as of December 1996, by and
    between David E. Clem and David M. Roby, as Trustees of
    Fort Washington Realty Trust, and Vertex Pharmaceuticals
    Incorporated.(8)                                                         
|       
|        | 10 | .72         |  | Second Amendment to Lease, dated as of June 13, 1997, by
    and between David E. Clem and David M. Roby, as Trustees of
    Fort Washington Realty Trust, and Vertex Pharmaceuticals
    Incorporated.(8)                                                        

88



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##### Table of Contents



|        |    |             |  |                                                                                                                                                                                                               
|------- | -- | ----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|Number  |    | Description
|        |    |            
|       
|        | 10 | .73         |  | Third Amendment to Lease, dated as of October 1, 1998, by
    and between David E. Clem and David M. Roby, as Trustees of
    Fort Washington Realty Trust, and Vertex Pharmaceuticals
    Incorporated.(8)   
|       
|        | 10 | .74         |  | Fourth Amendment to Lease, dated as of February 22, 2000,
    by and between David E. Clem and David M. Roby, as Trustees of
    Fort Washington Realty Trust, and Vertex Pharmaceuticals
    Incorporated.(8)
|       
|        | 10 | .75         |  | Fifth Amendment to Lease, dated as of May 1, 1999, by and
    between David E. Clem and David M. Roby, as Trustees of
    Fort Washington Realty Trust, and Vertex Pharmaceuticals
    Incorporated.(8)       
|       
|        | 10 | .76         |  | Sixth Amendment to Lease, dated as of April 6, 2005, by and
    between David E. Clem and David M. Roby, as Trustees of
    Fort Washington Realty Trust, and Vertex Pharmaceuticals
    Incorporated.(8)     
|       
|        | 21 | .1          |  | List of Subsidiaries of BioMed Realty Trust, Inc.(4)                                                                                                                                                          
|       
|        | 23 | .1          |  | Consent of KPMG LLP.(4)                                                                                                                                                                                       
|       
|        | 31 | .1          |  | Certification of Chief Executive Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.(4)                                                                                                    
|       
|        | 31 | .2          |  | Certification of Chief Financial Officer pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.(4)                                                                                                    
|       
|        | 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.(4)                






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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) | Filed herewith.                                                                                                                                                                                                                
|   
|(5) | 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.                                                
|   
|(6) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Current Report on
    Form 8-K filed
    with the Securities and Exchange Commission on April 19,
    2005.                                                 
|   
|(7) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Current Report on
    Form 8-K filed
    with the Securities and Exchange Commission on April 25,
    2005.                                                 
|   
|(8) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Current Report on
    Form 8-K filed
    with the Securities and Exchange Commission on June 3, 2005.                                                       
|   
|(9) | Incorporated herein by reference to BioMed Realty Trust
    Inc.s Current Report on
    Form 8-K filed
    with the Securities and Exchange Commission on
    September 29, 2005.                                             

89



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##### Table of Contents



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 Officer)            
|
| | /s/ Karen A. Sztraicher                  
| |                                          
| | Karen A. Sztraicher                      
| | Vice President  Chief Accounting Officer
| | (Principal Accounting Officer)           





|                                       |  |                                                                   |  |                |  | 
|-------------------------------------- |  | ----------------------------------------------------------------- |  | -------------- |  | 
|Signature                              |  | Title                                                             |  | Date          
|                                       |  |                                                                   |  |               
|                                      
|/s/ Barbara R. CambonBarbara R. Cambon |  | Director                                                          |  | March 14, 2006
|                                      
|/s/ Edward A. DennisEdward A. Dennis   |  | Director                                                          |  | March 14, 2006
|                                      
|/s/ Gary A. KreitzerGary A. Kreitzer   |  | Executive Vice President, General Counsel, Secretary and Director |  | March 14, 2006
|                                      
|/s/ Mark J. RiedyMark J. Riedy         |  | Director                                                          |  | March 14, 2006
|                                      
|/s/ Theodore D. RothTheodore D. Roth   |  | Director                                                          |  | March 14, 2006
|                                      
|/s/ M. Faye WilsonM. Faye Wilson       |  | Director                                                          |  | March 14, 2006

90