BioMed, a real estate investment trust for biotech companies, is receiving interest from Blackstone Group (BX), sources told Bloomberg.
The San Diego, CA-based company has a market cap of $3.9 billion and is said to be working with Morgan Stanley on a potential sale.
The company controls about $8 billion in high-quality laboratory properties, Bloomberg noted.
Blackstone and BioMed declined to comment on the reports today.
Separately, TheStreet Ratings team rates BIOMED REALTY TRUST INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate BIOMED REALTY TRUST INC (BMR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 26.5% when compared to the same quarter one year prior, rising from $18.64 million to $23.58 million.
- BMR, with its decline in revenue, underperformed when compared the industry average of 9.7%. Since the same quarter one year prior, revenues slightly dropped by 7.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- BMR has underperformed the S&P 500 Index, declining 6.78% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- Net operating cash flow has decreased to $55.49 million or 23.60% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: BMR