1289236--2/28/2007--BioMed_Realty_Trust

related topics

{investment, property, distribution}

{loan, real, estate}

{provision, law, control}

{stock, price, share}

{debt, indebtedness, cash}

{cost, regulation, environmental}

{tax, income, asset}

{regulation, change, law}

{acquisition, growth, future}

{loss, insurance, financial}

{cost, contract, operation}

{operation, natural, condition}

{stock, price, operating}

Because particular upgrades are required for life science tenants, improvements to our properties involve greater expenditures than traditional office space, which costs may not be covered by the rents our tenants pay. Because of the unique and specific improvements required for our life science tenants, we may be required to incur substantial renovation costs to make our properties suitable for other life science tenants or other office tenants, which could adversely affect our operating performance. The geographic concentration of our properties in Boston, Maryland and California makes our business particularly vulnerable to adverse conditions affecting these markets. Our tax indemnification and debt maintenance obligations require us to make payments if we sell certain properties or repay certain debt, which could limit our operating flexibility. Our expansion strategy may not yield the returns expected, may result in disruptions to our business, may strain our management resources and may adversely affect our operations. We may be unable to acquire, develop or operate new properties successfully, which could harm our financial condition and ability to pay distributions to our stockholders. Our success depends on key personnel with extensive experience dealing with the real estate needs of life science tenants, and the loss of these key personnel could threaten our ability to operate our business successfully. The bankruptcy of a tenant may adversely affect the income produced by and the value of our properties. Compliance with changing regulation of corporate governance and public disclosure may result in additional expenses and may have a negative impact on our business. Future acts of terrorism or war or the risk of war may have a negative impact on our business. Risks Related to the Real Estate Industry Significant competition may decrease or prevent increases in our properties occupancy and rental rates and may reduce our investment opportunities. Uninsured and underinsured losses could adversely affect our operating results and our ability to make distributions to our stockholders. Our performance and value are subject to risks associated with the ownership and operation of real estate assets and with factors affecting the real estate industry. Illiquidity of real estate investments may make it difficult for us to sell properties in response to market conditions and could harm our financial condition and ability to make distributions. We may be unable to renew leases, lease vacant space or re-lease space as leases expire, which could adversely affect our business and our ability to pay distributions to our stockholders. We could incur significant costs related to government regulation and private litigation over environmental matters involving the presence, discharge or threat of discharge of hazardous or toxic substances, which could adversely affect our operations, the value of our properties, and our ability to make distributions to our stockholders. We could incur significant costs related to governmental regulation and private litigation over environmental matters involving asbestos-containing materials, which could adversely affect our operations, the value of our properties, and our ability to make distributions to our stockholders. Our properties may contain or develop harmful mold, which could lead to liability for adverse health effects and costs of remediating the problem, which could adversely affect the value of the affected property and our ability to make distributions to our stockholders. Compliance with the Americans with Disabilities Act and similar laws may require us to make significant unanticipated expenditures. We may incur significant unexpected costs to comply with fire, safety and other regulations, which could adversely impact our financial condition, results of operations, and ability to make distributions. Risks Related to Our Organizational Structure Conflicts of interest could result in our management acting other than in our stockholders best interests. We may choose not to enforce, or to enforce less vigorously, our rights under contribution agreements because of conflicts of interest with certain of our officers. Our charter and Maryland law contain provisions that may delay, defer or prevent a change of control transaction and may prevent stockholders from receiving a premium for their shares. Our charter and the articles supplementary with respect to our preferred stock contain 9.8% ownership limits that may delay, defer or prevent a change of control transaction. We could authorize and issue stock without stockholder approval that may delay, defer or prevent a change of control transaction. Certain provisions of Maryland law could inhibit changes in control that may delay, defer or prevent a change of control transaction. Our board of directors may amend our investing and financing policies without stockholder approval, and, accordingly, our stockholders would have limited control over changes in our policies that could increase the risk we default under our debt obligations or that could harm our business, results of operations and share price. We may invest in properties with other entities, and our lack of sole decision-making authority or reliance on a co-venturer s financial condition could make these joint venture investments risky. Risks Related to Our Capital Structure Debt obligations expose us to increased risk of property losses and may have adverse consequences on our business operations and our ability to make distributions. Our credit facilities include restrictive covenants relating to our operations, which could limit our ability to respond to changing market conditions and our ability to make distributions to our stockholders. We have and may continue to engage in hedging transactions, which can limit our gains and increase exposure to losses. Increases in interest rates could increase the amount of our debt payments and adversely affect our ability to pay distributions to our stockholders. If we fail to obtain external sources of capital, which is outside of our control, we may be unable to make distributions to our stockholders, maintain our REIT qualification, or fund growth. Risks Related to Our REIT Status Our failure to qualify as a REIT under the Code would result in significant adverse tax consequences to us and would adversely affect our business and the value of our stock. To maintain our REIT status, we may be forced to borrow funds during unfavorable market conditions to make distributions to our stockholders. To maintain our REIT status, we may be forced to forego otherwise attractive opportunities. Risks Related to the Ownership of Our Stock The market price and trading volume of our common stock may be volatile. An increase in market interest rates may have an adverse effect on the market price of our securities. Broad market fluctuations could negatively impact the market price of our common stock or preferred stock. Our distributions to stockholders may decline at any time. The number of shares of our common stock available for future sale could adversely affect the market price of our common stock.

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1289236--2/28/2007--BioMed_Realty_Trust_Inc