Ushering in good news for its shareholders, BioMed Realty Trust, Inc. BMR announced on Apr 20 that it has received an upgrade in its corporate credit rating from Moody's Investors Service. Specifically, the rating has been raised to “Baa2” from “Baa3” by the rating agency and the outlook assigned is “Stable.”
Reflecting positive sentiments, the shares were up 0.71% during Tuesday’s regular trading session on the NYSE.
The rating reflects BioMed Realty’s balance sheet strength as well as flexibility, which continues to encourage the company in pursuing growth opportunities across key innovation districts. This also reinforces the company’s competitive advantage.
In our opinion, the rating upgrade comes as a positive for this real estate investment trust (“REIT”) focused on the life science industry, as the move enhances the company’s creditworthiness in the market and is likely to boost investors’ confidence in the stock.
As a matter of fact, this REIT was the first life science-focused real estate firm to achieve investment grade corporate credit ratings from Moody's and Standard & Poor's Ratings Services in Apr 2010. Further, in Apr 2014, the company obtained a raise in its corporate credit rating to BBB from S&P.
BioMed Realty focuses on providing real estate solutions to the life science industry in the U.S. Its tenants primarily include scientific research institutions, biotechnology and pharmaceutical companies, government agencies as well as other entities involved in the life science industry. Currently, this REIT holds interests in properties spanning around 18.0 million square feet of rentable space.
BioMed Realty currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like Medical Properties Trust Inc. MPW, Omega Healthcare Investors Inc. OHI and Ventas, Inc. VTR. All these stocks hold a Zacks Rank #2 (Buy).
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