This 4.5% Yielder Continues To Execute Well

Aug. 2.12 | About: BioMed Realty (BMR)

BioMed Realty (BMR) reported a very solid quarter Wednesday. The company continues to execute extremely well and shows why it remains in my income portfolio.

Key Highlights from earnings report:

  • Total revenues for the quarter came in at $124.8 million, up 17.3% from $106.4 million in the same period in 2011 and the highest in the company's history.
  • Revenues came in $6mm over estimates.
  • Biomed increased adjusted funds from operations (AFFO) per share for the quarter by 22.2% to $0.33 per diluted share, as compared to $0.27 per diluted share in the second quarter of 2011.
  • The current operating portfolio improved to be approximately 91.8% leased at quarter end.

"BioMed Realty Trust operates as a real estate investment trust (REIT) that focuses on providing real estate to the life science industry in the United States." (Business description from Yahoo Finance).

Four additional reasons to pick up BMR at under $38 a share:

  1. The company has doubled its dividend to yield 4.6% at current prices since starting to recover from the financial crisis in 2009.
  2. BioMed has done a solid job of building its portfolio over the years. Revenues have increased at over a 13% annual clip over the past five years. It continues to be able raise money at low rates. It recently completed a $250mm debt offering at just over 4 ¼ percent.
  3. BMR investment portfolio is focused on life science and biotech properties in the seven core U.S. life science (Boston, San Francisco, etc…). These markets have held up better than commercial real estate as a whole and have very stable tenants.
  4. The stock has a nice near term technical support range here (See Chart)

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Disclosure: I am long BMR.