BioMed Realty Trust, Inc. (NYSE:BMR)

CAPS Rating: 2 out of 5

The Company is a real estate investment trust, or REIT, focused on acquiring, developing, owning, leasing and managing laboratory and office space for the life science industry.

Recs

2
Player Avatar JakilaTheHun (99.93) Submitted: 12/23/2009 10:25:51 AM : Outperform Start Price: $5.20 BMR Score: +176.77

Note on this pick:

I bought in around $6.50. It was very obvious to me based on BMR's low amount of leverage, strong cash flows, and property portfolio that it was worth more than that.

As I write this, it sells at $16. I believe it is still slightly undervalued even at this price. Based on cash flows, equity interest in assets, and other factors, I'd value this company somewhere between $20 - $28, just based on a quick glance. I do, however, have some concerns about the locations of their properties (many being in bubble markets), so I'd probably stay on the conservative end of that.

I would not buy in at the current price. It's too expensive, in my view, when compared to other REITs. All the same, I plan on continuing my pick here on CAPS, especially since it pays out a sizable dividend. My strategy for CAPS on the REITs is buy-and-hold for life. If I see BMR tip over $25, I might consider ending my pick, but otherwise, I plan on keeping this pick forever.

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