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No. of Recommendations: 21
BMR is a solid REIT. They own and lease space to life science companies, primarly pharma and biotech. This is a very good property sector, and is less economically-sensitive than most. Owners do, however, need to exercise care in tenant choice. BMR is less concentrated in "cluster" markets where the major tenants want to be, but their markets are solid and have been able to keep occupancies at good levels.

I do not like them as well as ARE, their only true public company peer. I prefer ARE's locations and think they will create more shareholder value over time. But BMR is doing pretty well, and should continue to do so. I think the stock has been weak recently due to a change in management (although not their top guy), and because of questions concerning near-term portfolio performance.

The stock is cheap on an NAV and dividend yield basis and, while total returns may not be as good as ARE's going forward, earnings growth should resume next year. And the balance sheet is strong, at below 40% total leverage. BMR is particularly attractive for those who want a higher yield with only modest risk, although it could be an underperformer for a while longer. I own it, in modest proportions.

Ralph
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