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BioMed Realty’s Other Strategy: Generating Sustainable Growth


Jan. 20 2016, Updated 3:04 p.m. ET

BioMed’s Realty’s leveraging expertise

BioMed Realty Trust’s (BMR) growth strategy aims to meet the rising demand for specialized office and laboratory space from life science companies by leveraging its local knowledge and management expertise. The company follows a number of strategic initiatives to achieve its long-term strategic objectives.

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External growth strategy

The company’s external strategy is to focus on well-located quality properties with higher leasing potential. The properties in these locations are highly in demand by life science companies because of their proximity to skill manpower and knowledge base. The company believes that quality properties in core markets have the potential to generate higher occupancy which could lead to more rental income.

Attracting quality tenants and recycling capital

The company’s strategy is to lease such properties to high-quality life science tenants with attractive in-place yields. The quality tenants ensure steady cash flows to the company and long-term growth potential.

BioMed Realty’s strategy is to acquire, develop, and redevelop properties in target markets that add substantial value to its portfolio and generate higher returns to the stockholders. The development and redevelopment strategy is focused on projects that have the potential to provide an additional catalyst for future growth. The company expects to earn higher income from such properties.

This strategy may likely boost BioMed Realty’s income

BioMed Realty expects its strategy to generate higher rental income along with higher occupancy levels in the years to come. Other major office REITs (real estate investment trusts) including Kilroy Realty Corporation (KRC), SL Green Realty Corporation (SLG), and Boston Properties (BXP) also focus on their core markets to garner higher market share. The SPDR Dow Jones Wilshire REIT ETF (RWR) invests approximately 0.8% of its portfolio in BioMed Realty.

In the next part of this series, we’ll discuss Blackstone’s plans for BioMed Realty.


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