Strength in biotech stocks has been well -documented in recent
months. Innovation abounds in the sector, and new companies are
sprouting up all the time.
BioMed Realty Trust (
) is a real-estate investment trust poised to benefit from
continued innovation and expansion in the sector.
Headquartered in San Diego, a major life science market, the
company has properties in other big markets including Boston, New
York/New Jersey, Pennsylvania, San Francisco and Seattle.
In San Diego, it leases space to biotech names likeReceptos (
),Vertex Pharmaceuticals (
) andIsis Pharmaceuticals (
The REIT space is known for delivering yield and BioMed Realty
has it. Earlier this week, the company declared a quarterly
dividend of 25 cents a share, giving it a stout annual yield of
In the fourth quarter, funds from operations (FFO) fell 6% to
31 cents a share but sales rose 14% to $158 million. It entered
into a new lease with Moderna Therapeutics (44,000 square feet)
in Cambridge, Mass., and another with Asterias Biotherapeutics
(44,000 square feet) in Fremont, Calif.
In the past three years, total revenue growth has accelerated
from 13% to 18% to 23%. The company didn't give overall revenue
guidance for 2014, but it forecast rental revenue of $475 million
to $500 million, up 9%-10% from a year ago.
For all of 2013, the company executed 120 leasing transactions
representing approximately 2.3 million square feet, the highest
annual total gross leasing volume in the company's history.
Chartwise, BioMed Realty Trust is building a handle area in a
cup-with-handle pattern. The potential buy point is 20.99, or 10
cents above its Feb. 24 intraday high. An up-down volume ratio of
1.3 -- well above the neutral 1.0 level -- indicates strong
demand for shares in recent weeks.