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I will now turn the call over to Alan Gold. Alan?Alan Gold Thanks, Rick. And welcome everyone to our second quarter 2012 earnings call and presentation. Our excellent operating financial results in the second quarter, strong leasing, significant cash flow growth and high-quality new investments demonstrate again our ability to leverage our operating platform and our sound flexible capital position to create value for shareholders. The best-in-class BioMed Realty team delivered outstanding top and bottom-line results, including a 10.3% increase in core FFO per diluted share, and a 22.2% increase in AFFO per diluted share, which is a good proxy for our cash flow driven by more than 450 basis points of positive net absorption and 6.4% year-over-year growth in cash NOI for our same property portfolio as a result of our consistent execution of our leasing program. And during the quarter, we acquired almost 300 million in high-quality life science assets, with a GAAP yield of 7.5%, comprising over 600,000 rentable SF 100% leased, plus an additional 140,000 SF of development potential. These investments were highlighted by back-to-back transactions announced in mid-June, through which we creatively expanded our premiere property portfolio. First, we entered into a partnership with Shire Regenerative Medicine, a subsidiary of Shire, a global biopharmaceutical company, to develop a 28-acre project and consolidate their San Diego operations. Then, on the same day, we announced our investment in Granta Park, an internationally-recognized life science research park in the core Cambridge, U.K. life science market. We are very excited about each of these investments, and Kent will discuss them in more detail in a moment. But when looking at these transactions collectively, we are especially pleased with how they provided tangible illustration of the robust nature of our fully-integrated operating platform and our ability to leverage BioMed Realty particular skill, expertise and relationships in life science real estate to create lasting value.
Before I hand it over to Matt and Kent, I’d like to review the current trends and observations in the life science industry. The big picture remains very positive. First, the long-term demographic trends and the aging and extended life span of the population continue to serve as the drivers of demand for more innovation and improvements in medicine. Importantly, the many FDA approvals over the past 18 months serve as a testimony to the ability for our biotechnology and pharmaceutical sectors to continue to make scientific advances that can improve the human condition.There have been 16 FDA approvals in the first half of the year, following 30 in 2011, and our tenants have continued to garner a disproportionately large piece of the approval pie, with Amylin, Vertex, Genentech and Arena all receiving drug approvals in 2012. And in turn, capital raising has continued at a healthy level, with partnering transactions, public equity offerings and private equity debt financings totaling 27 billion for the first six months of 2012. Now this is below the blockbuster pace for 2011, but consistent with the heavy volumes we experienced in 2009 and 2010. The AmEx Biotech Index continues to outperform the broader market for the year, posting a 32% increase year-to-date compared to 9% for the S&P 500. M&A activity continues at a healthy clip, and most notably with GlaxoSmithKline’s acquisition of Human Genome Sciences. This is an enormous positive, as GSK represents a very material credit upgrade to our largest tenant, which has one of the longest lease terms in our tenant roster. A full 10.4% of our rents are leased to what will soon be a GSK subsidiary with 14 years of remaining lease term, not to mention the fact that the remaining term is firm, with no lease termination options for GSK. The impact on our tenant portfolio is equally positive, as approximately 40% of our tenant roster will be comprised of investment-grade life science companies and research institutions, with an average remaining term on their leases of nine years. Read the rest of this transcript for free on seekingalpha.com