BioMed Realty Trust Inc., a life science property owner with a large presence around Boston, has reported a 29 percent decline in funds from operations (FFO) for the first quarter, reflecting a decline in revenues as well as a loss on extinguishment of debt in the latest quarter in addition to higher interest expense.
The San Diego, Calif.-based company reported FFO for the first quarter of $33.98 million, down from $47.7 million in the same quarter last year.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share for the first quarter. Analysts’ estimates typically exclude special items.
Net income for the first quarter plunged to $4.3 million from $19.02 million for the same period last year.
During the quarter ended March 31, the company executed one of its biggest leases in the Bay State. Ironwood Pharmeceuticals expanded its lease to 50,000 square feet at the laboratory research facility at 301 Binney St. in Cambridge. The building is owned through the company’s joint venture with institutional investors advised by Prudential Real Estate Investors.
Total revenues for the quarter edged down to $92.76 million from $93.95 million in the same quarter last year, but exceeded analysts’ consensus revenue estimate of $88.94 million.
Rental revenues for the latest quarter increased 3.2 percent to $70.6 million from $68.4 million in the prior-year quarter. Tenant recoveries were $20.83 million, down from $21.08 million in the year-ago quarter.
"Collectively, our accomplishments in April represent a major milestone in our company’s evolution and we view these events as further validation of the quality of BioMed’s assets and tenants and a tremendous testimony to the company’s sustained commitment to a sound financial foundation," said Kent Griffin, president and chief financial officer of BioMed. "More importantly, we believe that we have positioned our company with sufficient liquidity and access to diversified sources of capital that will enable us to effectively execute our business plan and create value for our stockholders."
