BioMed Realty Trust Leases Space To Life Science Firms


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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 ( BMR ) 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 ( RCPT ),Vertex Pharmaceuticals ( VRTX ) andIsis Pharmaceuticals ( ISIS ).

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 4.9%.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Investing Ideas
More Headlines for: BMR , RCPT , VRTX , ISIS

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