Morningstar Rating

Stock Research and Analysis

by Todd Lukasik, CFA

Bulls Say

Drug approvals by the FDA and successful capital raising activities by life sciences firms bode well for BioMed's properties, as these positive developments provide funding for life sciences firms' operations, including leasing space for research and development.
As the U.S. population ages, it will drive demand for incremental drugs, driving life sciences firms to continue to demand space to conduct research and development, providing growth opportunities for BioMed.
BioMed's long-term leases are generally attractive to the firm, promising increased cash flow over time. Read more 

Bears Say

Many of BioMed's tenants lack proven, long-term revenue streams and are instead reliant upon investment capital for early-stage development expenses.
Relative to regular office properties, life sciences real estate involves specialized infrastructure. If demand for life science space falls, it's unlikely that traditional office tenants would pay rent sufficient to cover these extra fixed costs.
BioMed's main peer, Alexandria Real Estate Equities, has a large potential development pipeline in both firms' core markets, which could pressure rents as the pipeline is developed. Read more 

Management

We think BioMed has Standard stewardship. We believe that the firm has done reasonably well by shareholders since its 2004 IPO, returning roughly 9% annually on average, roughly double the total return on the S&P 500 over the same time frame, albeit   Read more 

Profile

BioMed is a landlord to the life sciences industry, including biotech and pharmaceutical companies, research organizations, and government agencies that lease a combination   Read more 

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