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BioMed Realty Trust REIT Looks For A Buyer

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B ioMed Realty Trust ( BMR ) jumped more than 12% Wednesday after Bloomberg reported that the company is exploring a sale. Bloomberg saidBlackstone Group ( BX ) is interested in buying it.

BioMed Realty is a real estate investment trust that specializes in providing homes and laboratories for the life science industry.

It focuses its efforts in seven core markets : Boston, San Francisco, San Diego, Maryland, New York, Pennsylvania and Seattle.

The companies it serves want to be part of research hubs near universities.

BioMed was founded in 2004 with the realization that traditional REITs weren't able to satisfy the unique needs of research companies. It says it owns 18 million square feet of office and laboratory space it leases to companies and research institutions.

Among the big universities it houses are Harvard, Yale and the University of California, San Diego.

In April 2013, the company announced a new build-to-suit transaction forRegeneron Pharmaceutical ( REGN ) for two new buildings totaling 297,000 square feet and a parking structure at the Landmark at Eastview in Tarrytown, N.Y. That expands Regeneron's campus to 1.4 million square feet. BioMed Realty says the laboratory and office space is pre-leased for a 15-year term.

In June of this year, it announced thatIllumina ( ILMN ) signed a 20-year lease for a 155,000-square-foot research building in Cambridge, England.

The stock has been underperforming for the last several years, basically moving sideways. From a high near 25 in January, it slipped to 18 in recent weeks.

The company pays a dividend of 26 cents a share, which works out to an annualized yield of 4.8%. The five-year annualized dividend growth rate is 16%.

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


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

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