Maryland | 95-4502084 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.01 par value per share | ARE | New York Stock Exchange |
7.00% Series D Cumulative Convertible Preferred Stock | ARE/PD | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |
Emerging growth company | ☐ |
Page | ||
Consolidated Balance Sheets as of | ||
Consolidated Financial Statements | ||
Consolidated Statements of Income | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated | ||
Consolidated Statements of Cash Flows for the | ||
ASU | Accounting Standards Update |
ATM | At the Market |
BPS | Basis Points |
CIP | Construction in Progress |
EPS | Earnings per Share |
FASB | Financial Accounting Standards Board |
FFO | Funds |
GAAP | U.S. Generally Accepted Accounting Principles |
HVAC | Heating, Ventilation, and Air Conditioning |
JV | Joint Venture |
LEED® | Leadership in Energy and Environmental Design |
LIBOR | London Interbank Offered Rate |
National Association of Real Estate Investment Trusts | |
NAV | Net Asset Value |
REIT | Real Estate Investment Trust |
RSF | Rentable Square Feet/Foot |
SEC | Securities and Exchange Commission |
SF | Square Feet/Foot |
SoMa | South of Market (submarket of the San Francisco market) |
U.S. | United States |
VIE | Variable Interest Entity |
September 30, 2017 | December 31, 2016 | June 30, 2019 | December 31, 2018 | |||||||||||
Assets | ||||||||||||||
Investments in real estate | $ | 10,046,521 | $ | 9,077,972 | $ | 12,872,824 | $ | 11,913,693 | ||||||
Investments in unconsolidated real estate joint ventures | 33,692 | 50,221 | 334,162 | 237,507 | ||||||||||
Cash and cash equivalents | 118,562 | 125,032 | 198,909 | 234,181 | ||||||||||
Restricted cash | 27,713 | 16,334 | 39,316 | 37,949 | ||||||||||
Tenant receivables | 9,899 | 9,744 | 9,228 | 9,798 | ||||||||||
Deferred rent | 402,353 | 335,974 | 585,082 | 530,237 | ||||||||||
Deferred leasing costs | 208,265 | 195,937 | 247,468 | 239,070 | ||||||||||
Investments | 485,262 | 342,477 | 1,057,854 | 892,264 | ||||||||||
Other assets | 213,056 | 201,197 | 694,627 | 370,257 | ||||||||||
Total assets | $ | 11,545,323 | $ | 10,354,888 | $ | 16,039,470 | $ | 14,464,956 | ||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||
Secured notes payable | $ | 1,153,890 | $ | 1,011,292 | $ | 354,186 | $ | 630,547 | ||||||
Unsecured senior notes payable | 2,801,290 | 2,378,262 | 5,140,914 | 4,292,293 | ||||||||||
Unsecured senior line of credit | 314,000 | 28,000 | 514,000 | 208,000 | ||||||||||
Unsecured senior bank term loans | 547,860 | 746,471 | ||||||||||||
Unsecured senior bank term loan | 347,105 | 347,415 | ||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 740,070 | 731,671 | 1,157,417 | 981,707 | ||||||||||
Dividends payable | 83,402 | 76,914 | 114,379 | 110,280 | ||||||||||
Total liabilities | 5,640,512 | 4,972,610 | 7,628,001 | 6,570,242 | ||||||||||
Commitments and contingencies | ||||||||||||||
Redeemable noncontrolling interests | 11,418 | 11,307 | 10,994 | 10,786 | ||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity: | ||||||||||||||
7.00% Series D cumulative convertible preferred stock | 74,386 | 86,914 | 57,461 | 64,336 | ||||||||||
6.45% Series E cumulative redeemable preferred stock | — | 130,000 | ||||||||||||
Common stock | 943 | 877 | 1,120 | 1,110 | ||||||||||
Additional paid-in capital | 5,287,777 | 4,672,650 | 7,581,573 | 7,286,954 | ||||||||||
Accumulated other comprehensive income | 43,864 | 5,355 | ||||||||||||
Accumulated other comprehensive loss | (11,134 | ) | (10,435 | ) | ||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 5,406,970 | 4,895,796 | 7,629,020 | 7,341,965 | ||||||||||
Noncontrolling interests | 486,423 | 475,175 | 771,455 | 541,963 | ||||||||||
Total equity | 5,893,393 | 5,370,971 | 8,400,475 | 7,883,928 | ||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 11,545,323 | $ | 10,354,888 | $ | 16,039,470 | $ | 14,464,956 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Rental | $ | 216,021 | $ | 166,591 | $ | 635,156 | $ | 486,505 | ||||||||||||||||||||||
Tenant recoveries | 67,058 | 58,681 | 188,874 | 165,385 | ||||||||||||||||||||||||||
Income from rentals | $ | 371,618 | $ | 322,794 | $ | 726,367 | $ | 640,449 | ||||||||||||||||||||||
Other income | 2,291 | 5,107 | 5,276 | 20,654 | 2,238 | 2,240 | 6,331 | 4,724 | ||||||||||||||||||||||
Total revenues | 285,370 | 230,379 | 829,306 | 672,544 | 373,856 | 325,034 | 732,698 | 645,173 | ||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||
Rental operations | 83,469 | 72,002 | 237,536 | 205,164 | 105,689 | 91,908 | 207,190 | 183,679 | ||||||||||||||||||||||
General and administrative | 17,636 | 15,854 | 56,099 | 46,426 | 26,434 | 22,939 | 51,111 | 45,360 | ||||||||||||||||||||||
Interest | 31,031 | 25,850 | 92,563 | 75,730 | 42,879 | 38,097 | 81,979 | 75,012 | ||||||||||||||||||||||
Depreciation and amortization | 107,788 | 77,133 | 309,069 | 218,168 | 134,437 | 118,852 | 268,524 | 233,071 | ||||||||||||||||||||||
Impairment of real estate | — | 8,114 | 203 | 193,237 | — | 6,311 | — | 6,311 | ||||||||||||||||||||||
Loss on early extinguishment of debt | — | 3,230 | 670 | 3,230 | — | — | 7,361 | — | ||||||||||||||||||||||
Total expenses | 239,924 | 202,183 | 696,140 | 741,955 | 309,439 | 278,107 | 616,165 | 543,433 | ||||||||||||||||||||||
Equity in earnings (losses) of unconsolidated real estate joint ventures | 14,100 | 273 | 15,050 | (270 | ) | |||||||||||||||||||||||||
Gain on sales of real estate – rental properties | — | — | 270 | — | ||||||||||||||||||||||||||
Gain on sales of real estate – land parcels | — | 90 | 111 | 90 | ||||||||||||||||||||||||||
Net income (loss) | 59,546 | 28,559 | 148,597 | (69,591 | ) | |||||||||||||||||||||||||
Equity in earnings of unconsolidated real estate joint ventures | 1,262 | 1,090 | 2,408 | 2,234 | ||||||||||||||||||||||||||
Investment income | 21,500 | 12,530 | 105,056 | 98,091 | ||||||||||||||||||||||||||
Net income | 87,179 | 60,547 | 223,997 | 202,065 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (5,773 | ) | (4,084 | ) | (18,892 | ) | (11,614 | ) | (8,412 | ) | (5,817 | ) | (16,071 | ) | (11,705 | ) | ||||||||||||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 53,773 | 24,475 | 129,705 | (81,205 | ) | |||||||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 78,767 | 54,730 | 207,926 | 190,360 | ||||||||||||||||||||||||||
Dividends on preferred stock | (1,302 | ) | (5,007 | ) | (6,364 | ) | (16,388 | ) | (1,005 | ) | (1,302 | ) | (2,031 | ) | (2,604 | ) | ||||||||||||||
Preferred stock redemption charge | — | (13,095 | ) | (11,279 | ) | (25,614 | ) | — | — | (2,580 | ) | — | ||||||||||||||||||
Net income attributable to unvested restricted stock awards | (1,198 | ) | (921 | ) | (3,498 | ) | (2,807 | ) | (1,432 | ) | (1,412 | ) | (3,134 | ) | (2,765 | ) | ||||||||||||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 51,273 | $ | 5,452 | $ | 108,564 | $ | (126,014 | ) | |||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 76,330 | $ | 52,016 | $ | 200,181 | $ | 184,991 | ||||||||||||||||||||||
Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted | $ | 0.55 | $ | 0.07 | $ | 1.20 | $ | (1.69 | ) | |||||||||||||||||||||
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders: | ||||||||||||||||||||||||||||||
Basic | $ | 0.68 | $ | 0.51 | $ | 1.80 | $ | 1.83 | ||||||||||||||||||||||
Diluted | $ | 0.68 | $ | 0.51 | $ | 1.80 | $ | 1.83 | ||||||||||||||||||||||
Dividends declared per share of common stock | $ | 0.86 | $ | 0.80 | $ | 2.55 | $ | 2.40 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 59,546 | $ | 28,559 | $ | 148,597 | $ | (69,591 | ) | ||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized gains (losses) on available-for-sale equity securities: | |||||||||||||||
Unrealized holding gains (losses) arising during the period | 17,018 | (38,621 | ) | 23,414 | (70,055 | ) | |||||||||
Reclassification adjustment for (gains) losses included in net income (loss) | — | (8,540 | ) | 2,482 | (18,627 | ) | |||||||||
Unrealized gains (losses) on available-for-sale equity securities, net | 17,018 | (47,161 | ) | 25,896 | (88,682 | ) | |||||||||
Unrealized gains (losses) on interest rate hedge agreements: | |||||||||||||||
Unrealized interest rate hedge gains (losses) arising during the period | 145 | 2,982 | 812 | (7,655 | ) | ||||||||||
Reclassification adjustment for amortization of interest expense included in net income (loss) | 198 | 1,702 | 1,810 | 3,725 | |||||||||||
Unrealized gains (losses) on interest rate hedge agreements, net | 343 | 4,684 | 2,622 | (3,930 | ) | ||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||
Unrealized foreign currency translation gains (losses) arising during the period | 3,836 | (1,322 | ) | 7,592 | 842 | ||||||||||
Reclassification adjustment for cumulative foreign currency translation losses included in net income (loss) upon sale or liquidation | — | 3,779 | 2,421 | 10,807 | |||||||||||
Unrealized gains on foreign currency translation, net | 3,836 | 2,457 | 10,013 | 11,649 | |||||||||||
Total other comprehensive income (loss) | 21,197 | (40,020 | ) | 38,531 | (80,963 | ) | |||||||||
Comprehensive income (loss) | 80,743 | (11,461 | ) | 187,128 | (150,554 | ) | |||||||||
Less: comprehensive income attributable to noncontrolling interests | (5,783 | ) | (4,081 | ) | (18,914 | ) | (11,587 | ) | |||||||
Comprehensive income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 74,960 | $ | (15,542 | ) | $ | 168,214 | $ | (162,141 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 87,179 | $ | 60,547 | $ | 223,997 | $ | 202,065 | |||||||
Other comprehensive loss | |||||||||||||||
Unrealized (losses) gains on interest rate hedge agreements: | |||||||||||||||
Unrealized interest rate hedge (losses) gains arising during the period | (1,126 | ) | 661 | (1,684 | ) | 2,643 | |||||||||
Reclassification adjustment for amortization of interest income included in net income | 114 | (1,131 | ) | (1,815 | ) | (1,809 | ) | ||||||||
Unrealized (losses) gains on interest rate hedge agreements, net | (1,012 | ) | (470 | ) | (3,499 | ) | 834 | ||||||||
Unrealized gains (losses) on foreign currency translation: | |||||||||||||||
Unrealized foreign currency translation gains (losses) arising during the period | 590 | (3,243 | ) | 2,800 | (3,572 | ) | |||||||||
Unrealized gains (losses) on foreign currency translation, net | 590 | (3,243 | ) | 2,800 | (3,572 | ) | |||||||||
Total other comprehensive loss | (422 | ) | (3,713 | ) | (699 | ) | (2,738 | ) | |||||||
Comprehensive income | 86,757 | 56,834 | 223,298 | 199,327 | |||||||||||
Less: comprehensive income attributable to noncontrolling interests | (8,412 | ) | (5,817 | ) | (16,071 | ) | (11,705 | ) | |||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | $ | 78,345 | $ | 51,017 | $ | 207,227 | $ | 187,622 |
Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||
7.00% Series D Cumulative Convertible Preferred Stock | 6.45% Series E Cumulative Redeemable Preferred Stock | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||
Balance as of December 31, 2016 | $ | 86,914 | $ | 130,000 | 87,665,880 | $ | 877 | $ | 4,672,650 | $ | — | $ | 5,355 | $ | 475,175 | $ | 5,370,971 | $ | 11,307 | ||||||||||||||||||||
Net income | — | — | — | — | — | 129,705 | — | 18,139 | 147,844 | 753 | |||||||||||||||||||||||||||||
Total other comprehensive income | — | — | — | — | — | — | 38,509 | 22 | 38,531 | — | |||||||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | — | (16,790 | ) | (16,790 | ) | (642 | ) | ||||||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | — | — | — | — | 9,877 | 9,877 | — | |||||||||||||||||||||||||||||
Issuances of common stock | — | — | 6,249,309 | 62 | 705,329 | — | — | — | 705,391 | — | |||||||||||||||||||||||||||||
Issuances pursuant to stock plan | — | — | 409,360 | 4 | 30,638 | — | — | — | 30,642 | — | |||||||||||||||||||||||||||||
Repurchase of 7.00% Series D preferred stock | (12,528 | ) | — | — | — | 391 | (5,797 | ) | — | — | (17,934 | ) | — | ||||||||||||||||||||||||||
Redemption of 6.45% Series E preferred stock | — | (130,000 | ) | — | — | 5,132 | (5,482 | ) | — | — | (130,350 | ) | — | ||||||||||||||||||||||||||
Dividends declared on common stock | — | — | — | — | — | (238,425 | ) | — | — | (238,425 | ) | — | |||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (6,364 | ) | — | — | (6,364 | ) | — | |||||||||||||||||||||||||||
Distributions in excess of earnings | — | — | — | — | (126,363 | ) | 126,363 | — | — | — | — | ||||||||||||||||||||||||||||
Balance as of September 30, 2017 | $ | 74,386 | $ | — | 94,324,549 | $ | 943 | $ | 5,287,777 | $ | — | $ | 43,864 | $ | 486,423 | $ | 5,893,393 | $ | 11,418 |
Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
7.00% Series D Cumulative Convertible Preferred Stock | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Balance as of March 31, 2019 | $ | 57,461 | 111,180,659 | $ | 1,112 | $ | 7,518,716 | $ | — | $ | (10,712 | ) | $ | 777,448 | $ | 8,344,025 | $ | 10,889 | |||||||||||||||||
Net income | — | — | — | — | 78,767 | — | 8,194 | 86,961 | 218 | ||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | — | (422 | ) | — | (422 | ) | — | ||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (14,674 | ) | (14,674 | ) | (207 | ) | |||||||||||||||||||||||
Contributions from and sales of noncontrolling interests | — | — | — | — | — | — | 487 | 487 | 94 | ||||||||||||||||||||||||||
Issuance of common stock | — | 602,484 | 6 | 85,388 | — | — | — | 85,394 | — | ||||||||||||||||||||||||||
Issuance pursuant to stock plan | — | 327,699 | 3 | 17,244 | — | — | — | 17,247 | — | ||||||||||||||||||||||||||
Taxes paid related to net settlement of equity awards | — | (125,274 | ) | (1 | ) | (3,996 | ) | — | — | — | (3,997 | ) | — | ||||||||||||||||||||||
Dividends declared on common stock ($1.00 per share) | — | — | — | — | (113,541 | ) | — | — | (113,541 | ) | — | ||||||||||||||||||||||||
Dividends declared on preferred stock ($0.4375 per share) | — | — | — | — | (1,005 | ) | — | — | (1,005 | ) | — | ||||||||||||||||||||||||
Reclassification of distributions in excess of earnings | — | — | — | (35,779 | ) | 35,779 | — | — | — | — | |||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 57,461 | 111,985,568 | $ | 1,120 | $ | 7,581,573 | $ | — | $ | (11,134 | ) | $ | 771,455 | $ | 8,400,475 | $ | 10,994 |
Alexandria Real Estate Equities, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net income (loss) | $ | 148,597 | $ | (69,591 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 309,069 | 218,168 | |||||
Loss on early extinguishment of debt | 670 | 3,230 | |||||
Gain on sales of real estate – rental properties | (270 | ) | — | ||||
Impairment of real estate | 203 | 193,237 | |||||
Gain on sales of real estate – land parcels | (111 | ) | (90 | ) | |||
Equity in (earnings) losses of unconsolidated real estate joint ventures | (15,050 | ) | 270 | ||||
Distributions of earnings from unconsolidated real estate joint ventures | 249 | 286 | |||||
Amortization of loan fees | 8,578 | 8,792 | |||||
Amortization of debt premiums | (1,873 | ) | (117 | ) | |||
Amortization of acquired below-market leases | (14,908 | ) | (2,905 | ) | |||
Deferred rent | (74,362 | ) | (30,679 | ) | |||
Stock compensation expense | 18,649 | 19,007 | |||||
Investment gains | (8,425 | ) | (28,721 | ) | |||
Investment losses | 6,418 | 10,670 | |||||
Changes in operating assets and liabilities: | |||||||
Restricted cash | (912 | ) | (278 | ) | |||
Tenant receivables | (224 | ) | 843 | ||||
Deferred leasing costs | (39,925 | ) | (21,621 | ) | |||
Other assets | (10,662 | ) | (14,813 | ) | |||
Accounts payable, accrued expenses, and tenant security deposits | 30,619 | 6,163 | |||||
Net cash provided by operating activities | 356,330 | 291,851 | |||||
Investing Activities | |||||||
Proceeds from sales of real estate | 4,263 | 27,332 | |||||
Additions to real estate | (660,877 | ) | (638,568 | ) | |||
Purchases of real estate | (590,884 | ) | (18,108 | ) | |||
Deposits for investing activities | 4,700 | (54,998 | ) | ||||
Investments in unconsolidated real estate joint ventures | (248 | ) | (6,924 | ) | |||
Return of capital from unconsolidated real estate joint ventures | 38,576 | — | |||||
Additions to investments | (128,190 | ) | (68,384 | ) | |||
Sales of investments | 18,896 | 35,295 | |||||
Repayment of notes receivable | — | 9,054 | |||||
Net cash used in investing activities | $ | (1,313,764 | ) | $ | (715,301 | ) |
Alexandria Real Estate Equities, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Financing Activities | |||||||
Borrowings from secured notes payable | $ | 145,272 | $ | 215,330 | |||
Repayments of borrowings from secured notes payable | (2,882 | ) | (234,096 | ) | |||
Proceeds from issuance of unsecured senior notes payable | 424,384 | 348,604 | |||||
Borrowings from unsecured senior line of credit | 2,634,000 | 2,349,000 | |||||
Repayments of borrowings from unsecured senior line of credit | (2,348,000 | ) | (2,084,000 | ) | |||
Repayments of borrowings from unsecured senior bank term loans | (200,000 | ) | (200,000 | ) | |||
Change in restricted cash related to financing activities | (10,467 | ) | 7,742 | ||||
Payment of loan fees | (4,343 | ) | (16,499 | ) | |||
Repurchase of 7.00% Series D cumulative convertible preferred stock | (17,934 | ) | (98,633 | ) | |||
Redemption of 6.45% Series E cumulative redeemable preferred stock | (130,350 | ) | — | ||||
Proceeds from the issuance of common stock | 705,391 | 367,802 | |||||
Dividends on common stock | (229,814 | ) | (177,966 | ) | |||
Dividends on preferred stock | (8,317 | ) | (17,487 | ) | |||
Financing costs paid for sale of noncontrolling interests | — | (8,093 | ) | ||||
Contributions from and sale of noncontrolling interests | 9,877 | 68,621 | |||||
Distributions to and purchase of noncontrolling interests | (17,432 | ) | (62,605 | ) | |||
Net cash provided by financing activities | 949,385 | 457,720 | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | 1,579 | (1,440 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (6,470 | ) | 32,830 | ||||
Cash and cash equivalents as of the beginning of period | 125,032 | 125,098 | |||||
Cash and cash equivalents as of the end of period | $ | 118,562 | $ | 157,928 | |||
Supplemental Disclosure of Cash Flow Information: | |||||||
Cash paid during the period for interest, net of interest capitalized | $ | 86,232 | $ | 58,820 | |||
Non-Cash Investing Activities: | |||||||
Change in accrued construction | $ | (38,767 | ) | $ | 23,023 | ||
Contribution of real estate to an unconsolidated real estate joint venture | $ | 6,998 | $ | — | |||
Non-Cash Financing Activities: | |||||||
Redemption of redeemable noncontrolling interests | $ | — | $ | (5,000 | ) |
Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
7.00% Series D Cumulative Convertible Preferred Stock | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Balance as of March 31, 2018 | $ | 74,386 | 100,696,361 | $ | 1,007 | $ | 6,117,976 | $ | — | $ | 1,228 | $ | 528,538 | $ | 6,723,135 | $ | 10,212 | ||||||||||||||||||
Net income | — | — | — | — | 54,730 | — | 5,606 | 60,336 | 211 | ||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | — | (3,713 | ) | — | (3,713 | ) | — | ||||||||||||||||||||||||
Redemption of noncontrolling interests | — | — | — | — | — | — | — | — | (100 | ) | |||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (12,309 | ) | (12,309 | ) | (212 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | 257 | — | — | 6,978 | 7,235 | 750 | ||||||||||||||||||||||||||
Issuance of common stock | — | 2,456,037 | 25 | 300,813 | — | — | — | 300,838 | — | ||||||||||||||||||||||||||
Issuance pursuant to stock plan | — | 193,719 | 1 | 12,644 | — | — | — | 12,645 | — | ||||||||||||||||||||||||||
Dividends declared on common stock ($0.93 per share) | — | — | — | — | (97,591 | ) | — | — | (97,591 | ) | — | ||||||||||||||||||||||||
Dividends declared on preferred stock ($0.4375 per share) | — | — | — | — | (1,302 | ) | — | — | (1,302 | ) | — | ||||||||||||||||||||||||
Reclassification of distributions in excess of earnings | — | — | — | (44,163 | ) | 44,163 | — | — | — | — | |||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | 74,386 | 103,346,117 | $ | 1,033 | $ | 6,387,527 | $ | — | $ | (2,485 | ) | $ | 528,813 | $ | 6,989,274 | $ | 10,861 |
Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
7.00% Series D Cumulative Convertible Preferred Stock | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Balance as of December 31, 2018 | $ | 64,336 | 111,011,816 | $ | 1,110 | $ | 7,286,954 | $ | — | $ | (10,435 | ) | $ | 541,963 | $ | 7,883,928 | $ | 10,786 | |||||||||||||||||
Net income | — | — | — | — | 207,926 | — | 15,636 | 223,562 | 435 | ||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | — | (699 | ) | — | (699 | ) | — | ||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (24,175 | ) | (24,175 | ) | (415 | ) | |||||||||||||||||||||||
Contributions from and sales of noncontrolling interests | — | — | — | 202,246 | — | — | 238,031 | 440,277 | 188 | ||||||||||||||||||||||||||
Issuance of common stock | — | 602,484 | 6 | 85,388 | — | — | — | 85,394 | — | ||||||||||||||||||||||||||
Issuance pursuant to stock plan | — | 523,691 | 5 | 34,180 | — | — | — | 34,185 | — | ||||||||||||||||||||||||||
Taxes paid related to net settlement of equity awards | — | (152,423 | ) | (1 | ) | (4,085 | ) | — | — | — | (4,086 | ) | — | ||||||||||||||||||||||
Repurchases of 7.00% Series D preferred stock | (6,875 | ) | — | — | 215 | (2,580 | ) | — | — | (9,240 | ) | — | |||||||||||||||||||||||
Dividends declared on common stock ($1.97 per share) | — | — | — | — | (223,115 | ) | — | — | (223,115 | ) | — | ||||||||||||||||||||||||
Dividends declared on preferred stock ($0.875 per share) | — | — | — | — | (2,031 | ) | — | — | (2,031 | ) | — | ||||||||||||||||||||||||
Cumulative effect of adjustment upon adoption of new lease accounting standard on January 1, 2019 | — | — | — | — | (3,525 | ) | — | — | (3,525 | ) | — | ||||||||||||||||||||||||
Reclassification of distributions in excess of earnings | — | — | — | (23,325 | ) | 23,325 | — | — | — | — | |||||||||||||||||||||||||
Balance as of June 30, 2019 | $ | 57,461 | 111,985,568 | $ | 1,120 | $ | 7,581,573 | $ | — | $ | (11,134 | ) | $ | 771,455 | $ | 8,400,475 | $ | 10,994 |
Alexandria Real Estate Equities, Inc.’s Stockholders’ Equity | |||||||||||||||||||||||||||||||||||
7.00% Series D Cumulative Convertible Preferred Stock | Number of Common Shares | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | |||||||||||||||||||||||||||
Balance as of December 31, 2017 | $ | 74,386 | 99,783,686 | $ | 998 | $ | 5,824,258 | $ | — | $ | 50,024 | $ | 521,994 | $ | 6,471,660 | $ | 11,509 | ||||||||||||||||||
Net income | — | — | — | — | 190,360 | — | 11,280 | 201,640 | 425 | ||||||||||||||||||||||||||
Total other comprehensive loss | — | — | — | — | — | (2,738 | ) | — | (2,738 | ) | — | ||||||||||||||||||||||||
Reclassification of cumulative net unrealized gains on non-real estate investments upon adoption of new financial instruments standard on January 1, 2018 | — | — | — | — | 140,521 | (49,771 | ) | — | 90,750 | — | |||||||||||||||||||||||||
Redemption of noncontrolling interests | — | — | — | — | — | — | — | — | (1,397 | ) | |||||||||||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | — | — | (18,018 | ) | (18,018 | ) | (426 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interests | — | — | — | 257 | — | — | 13,557 | 13,814 | 750 | ||||||||||||||||||||||||||
Issuance of common stock | — | 3,299,637 | 33 | 400,174 | — | — | — | 400,207 | — | ||||||||||||||||||||||||||
Issuance pursuant to stock plan | — | 262,794 | 2 | 24,132 | — | — | — | 24,134 | — | ||||||||||||||||||||||||||
Dividends declared on common stock ($1.83 per share) | — | — | — | — | (189,571 | ) | — | — | (189,571 | ) | — | ||||||||||||||||||||||||
Dividends declared on preferred stock ($0.875 per share) | — | — | — | — | (2,604 | ) | — | — | (2,604 | ) | — | ||||||||||||||||||||||||
Reclassification of distributions in excess of earnings | — | — | — | 138,706 | (138,706 | ) | — | — | — | — | |||||||||||||||||||||||||
Balance as of June 30, 2018 | $ | 74,386 | 103,346,117 | $ | 1,033 | $ | 6,387,527 | $ | — | $ | (2,485 | ) | $ | 528,813 | $ | 6,989,274 | $ | 10,861 |
Alexandria Real Estate Equities, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Operating Activities | |||||||
Net income | $ | 223,997 | $ | 202,065 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 268,524 | 233,071 | |||||
Impairment of real estate | — | 6,311 | |||||
Loss on early extinguishment of debt | 7,361 | — | |||||
Equity in earnings of unconsolidated real estate joint ventures | (2,408 | ) | (2,234 | ) | |||
Distributions of earnings from unconsolidated real estate joint ventures | 1,679 | 287 | |||||
Amortization of loan fees | 4,613 | 5,136 | |||||
Amortization of debt premiums | (1,583 | ) | (1,181 | ) | |||
Amortization of acquired below-market leases | (15,202 | ) | (11,368 | ) | |||
Deferred rent | (52,441 | ) | (55,890 | ) | |||
Stock compensation expense | 22,466 | 15,223 | |||||
Investment income | (105,056 | ) | (98,091 | ) | |||
Changes in operating assets and liabilities: | |||||||
Tenant receivables | 573 | 1,552 | |||||
Deferred leasing costs | (23,471 | ) | (29,705 | ) | |||
Other assets | 560 | (15,055 | ) | ||||
Accounts payable, accrued expenses, and tenant security deposits | (21,272 | ) | 8,120 | ||||
Net cash provided by operating activities | 308,340 | 258,241 | |||||
Investing Activities | |||||||
Additions to real estate | (577,322 | ) | (431,225 | ) | |||
Purchases of real estate | (715,030 | ) | (688,698 | ) | |||
Deposits (paid) returned for investing activities | (9,000 | ) | 5,500 | ||||
Acquisitions of interests in unconsolidated real estate joint ventures | — | (35,922 | ) | ||||
Investments in unconsolidated real estate joint ventures | (95,950 | ) | (44,486 | ) | |||
Additions to investments | (104,902 | ) | (118,775 | ) | |||
Sales of investments | 49,967 | 44,707 | |||||
Net cash used in investing activities | $ | (1,452,237 | ) | $ | (1,268,899 | ) |
Alexandria Real Estate Equities, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2019 | 2018 | ||||||
Financing Activities | |||||||
Borrowings from secured notes payable | $ | — | $ | 9,044 | |||
Repayments of borrowings from secured notes payable | (302,878 | ) | (3,162 | ) | |||
Proceeds from issuance of unsecured senior notes payable | 854,209 | 899,321 | |||||
Borrowings from unsecured senior line of credit | 2,114,000 | 2,469,000 | |||||
Repayments of borrowings from unsecured senior line of credit | (1,808,000 | ) | (2,519,000 | ) | |||
Payment of loan fees | (15,796 | ) | (8,003 | ) | |||
Taxes paid related to net settlement of equity awards | (4,086 | ) | — | ||||
Repurchase of 7.00% Series D cumulative convertible preferred stock | (9,240 | ) | — | ||||
Proceeds from issuance of common stock | 85,394 | 400,207 | |||||
Dividends on common stock | (218,914 | ) | (183,040 | ) | |||
Dividends on preferred stock | (2,132 | ) | (2,604 | ) | |||
Contributions from and sales of noncontrolling interests | 441,251 | 14,564 | |||||
Distributions to and purchases of noncontrolling interests | (24,590 | ) | (19,841 | ) | |||
Net cash provided by financing activities | 1,109,218 | 1,056,486 | |||||
Effect of foreign exchange rate changes on cash and cash equivalents | 774 | (1,173 | ) | ||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (33,905 | ) | 44,655 | ||||
Cash, cash equivalents, and restricted cash as of the beginning of period | 272,130 | 277,186 | |||||
Cash, cash equivalents, and restricted cash as of the end of period | $ | 238,225 | $ | 321,841 | |||
Supplemental Disclosures and Non-Cash Investing and Financing Activities: | |||||||
Cash paid during the period for interest, net of interest capitalized | $ | 71,338 | $ | 68,885 | |||
Change in accrued construction | $ | 5,558 | $ | 48,074 | |||
Accrued construction for current-period additions to real estate | $ | 181,922 | $ | 183,573 | |||
Assumption of secured notes payable in connection with purchase of properties | $ | (28,200 | ) | $ | — | ||
Right-of-use asset | $ | 239,653 | $ | — | |||
Lease liability | $ | (245,638 | ) | $ | — |
1. | Organization and basis of presentation |
2. | Summary of significant accounting policies |
1) | The entity does not have sufficient equity to finance its activities without additional subordinated financial support; |
2) | The entity is established with non-substantive voting rights (i.e., where the entity deprives the majority economic interest holder(s) of voting rights); or |
3) | The equity holders, as a group, lack the characteristics of a controlling financial interest. Equity holders meet this criterion if they lack any of the following: |
2. | Summary of significant accounting policies (continued) |
2. | Summary of significant accounting policies (continued) |
2. | Summary of significant accounting policies (continued) |
2. | Summary of significant accounting policies (continued) |
2. | Summary of significant accounting policies (continued) |
June 30, 2019 | ||||||||
Three Months Ended | Six Months Ended | |||||||
Income from rentals: | ||||||||
Revenues subject to the new lease accounting standard: | ||||||||
Operating leases | $ | 358,461 | $ | 701,802 | ||||
Direct financing lease | 604 | 1,205 | ||||||
Revenues subject to the new lease accounting standard | 359,065 | 703,007 | ||||||
Revenues subject to the revenue recognition accounting standard | 12,553 | 23,360 | ||||||
Income from rentals | 371,618 | 726,367 | ||||||
Other income | 2,238 | 6,331 | ||||||
Total revenues | $ | 373,856 | $ | 732,698 |
2. | Summary of significant accounting policies (continued) |
• | Whether any contracts effective prior to January 1, 2019, are leases or contain leases. This practical expedient is primarily applicable to entities that have contracts containing embedded leases. As of December 31, 2018, we had no such contracts; therefore, this practical expedient had no effect on us. |
• | The lease classification for any leases that commenced prior to January 1, 2019. Our election of the package of practical expedients requires us not to revisit the classification of our leases that commenced prior to January 1, 2019. For example, all of our leases that were classified as operating leases in accordance with the lease accounting standards in effect prior to January 1, 2019, continue to be classified as operating leases after adoption of the new lease accounting standard. |
• | Previously capitalized initial direct costs for any leases that commenced prior to January 1, 2019. Our election of the package of practical expedients and the optional transition method requires us not to reassess whether initial direct leasing costs capitalized prior to the adoption of the new lease accounting standard in connection with the leases that commenced prior to January 1, 2019, qualify for capitalization under the new lease accounting standard. |
2. | Summary of significant accounting policies (continued) |
(i) | One party (lessor) must hold an identified asset, |
(ii) | The counterparty (lessee) must have the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of the contract, and |
(iii) | The counterparty (lessee) must have the right to direct the use of the identified asset throughout the period of the contract. |
(i) | Ownership is transferred from lessor to lessee by the end of the lease term, |
(ii) | An option to purchase is reasonably certain to be exercised, |
(iii) | The lease term is for the major part of the underlying asset’s remaining economic life, |
(iv) | The present value of lease payments equals or exceeds substantially all of the fair value of the underlying asset, or |
(v) | The underlying asset is specialized and is expected to have no alternative use at the end of the lease term. |
(i) | The timing and pattern of transfer of the lease component and the nonlease component(s) associated with it are the same, |
(ii) | The lease component would be classified as an operating lease if it were accounted for separately. |
2. | Summary of significant accounting policies (continued) |
June 30, 2018 | ||||||||
Three Months Ended | Six Months Ended | |||||||
Rental revenues (presentation prior to January 1, 2019) | $ | 250,635 | $ | 495,120 | ||||
Tenant recoveries (presentation prior to January 1, 2019) | 72,159 | 145,329 | ||||||
Income from rentals (presentation effective January 1, 2019) | $ | 322,794 | $ | 640,449 |
2. | Summary of significant accounting policies (continued) |
2. | Summary of significant accounting policies (continued) |
Date of ASU Adoption | Nine Months Ended September 30, 2017 | |||||||
Revenues subject to the new lease ASU: | ||||||||
Rental revenues | 1/1/19 | $ | 604,570 | |||||
Tenant recoveries (1) | 1/1/19 | 188,874 | ||||||
$ | 793,444 | |||||||
Revenues subject to the new revenue recognition ASU: | ||||||||
Parking and other revenues | 1/1/18 | 32,323 | ||||||
Revenues not subject to the new lease or revenue recognition ASUs: | ||||||||
Investment income subject to the new financial instruments ASU | 1/1/18 | $ | 2,007 | |||||
Interest and other income within the scope of other existing accounting standards | N/A | 1,532 | ||||||
3,539 | ||||||||
Total revenues | $ | 829,306 | ||||||
Gains on sales of real estate subject to the new revenue recognition ASU | 1/1/18 | $ | 381 |
Nine Months Ended September 30, 2017 | |||
Parking and other revenue | $ | 32,323 | |
Gain on sales of real estate | $ | 381 |
Cost | Net Unrealized Gains | Total | |||||||||
Available-for-sale equity securities | $ | 55,433 | $ | 45,189 | $ | 100,622 | |||||
Investments accounted for under cost method: | |||||||||||
Investments in limited partnerships | 136,044 | N/A | 136,044 | ||||||||
Investments in other privately held entities | 248,596 | N/A | 248,596 | ||||||||
Total investments | $ | 440,073 | $ | 45,189 | $ | 485,262 |
Nine Months Ended September 30, 2017 | |||
Investment income recognized in net income | $ | 2,007 | |
Unrealized gain recognized in other comprehensive income (component of stockholder’s equity) | $ | 23,414 |
2. | Summary of significant accounting policies (continued) |
3. | Investments in real estate |
June 30, 2019 | December 31, 2018 | |||||||
Rental properties: | ||||||||
Land (related to rental properties) | $ | 1,824,004 | $ | 1,625,349 | ||||
Buildings and building improvements | 10,664,625 | 9,986,635 | ||||||
Other improvements | 1,154,662 | 976,627 | ||||||
Rental properties | 13,643,291 | 12,588,611 | ||||||
Development and redevelopment of new Class A properties: | ||||||||
Development and redevelopment projects (under construction or pre‑construction) | 1,469,016 | 1,460,814 | ||||||
Future development projects | 214,338 | 98,802 | ||||||
Gross investments in real estate | 15,326,645 | 14,148,227 | ||||||
Less: accumulated depreciation | (2,484,176 | ) | (2,263,797 | ) | ||||
Net investments in real estate – North America | 12,842,469 | 11,884,430 | ||||||
Net investments in real estate – Asia | 30,355 | 29,263 | ||||||
Investments in real estate | $ | 12,872,824 | $ | 11,913,693 |
September 30, 2017 | December 31, 2016 | |||||||
Land (related to rental properties) | $ | 1,206,152 | $ | 1,131,416 | ||||
Buildings and building improvements | 8,466,889 | 7,810,269 | ||||||
Other improvements | 714,834 | 584,565 | ||||||
Rental properties | 10,387,875 | 9,526,250 | ||||||
Development and redevelopment of new Class A properties: | ||||||||
Undergoing construction | ||||||||
Development projects – target delivery in 2017 | 466,047 | 809,254 | ||||||
Development projects – target delivery in 2018 and 2019 | 143,038 | — | ||||||
Redevelopment projects – target delivery in 2018 and 2019 | 59,224 | — | ||||||
Near-term projects undergoing marketing and pre-construction | 114,954 | — | ||||||
Intermediate-term developments projects | 333,870 | — | ||||||
Future development projects | 289,314 | 253,551 | ||||||
Gross investments in real estate | 11,794,322 | 10,589,055 | ||||||
Less: accumulated depreciation | (1,785,115 | ) | (1,546,798 | ) | ||||
Net investments in real estate – North America | 10,009,207 | 9,042,257 | ||||||
Net investments in real estate – Asia | 37,314 | 35,715 | ||||||
Investments in real estate | $ | 10,046,521 | $ | 9,077,972 |
Square Footage | ||||||||||||||||
Market | Number of Properties | Future Development | Operating With Future Development/Redevelopment | Operating | Purchase Price | |||||||||||
Greater Boston | — | 175,000 | — | — | $ | 81,100 | ||||||||||
San Francisco | 4 | — | — | 247,770 | 239,450 | |||||||||||
San Diego | 2 | — | 53,220 | — | 23,250 | |||||||||||
Other | 4 | — | 75,864 | — | 39,150 | |||||||||||
Three months ended March 31, 2019 | 10 | 175,000 | 129,084 | 247,770 | 382,950 | (1) | ||||||||||
Greater Boston | 1 | 293,000 | — | 87,163 | 252,000 | |||||||||||
San Diego | 1 | 149,000 | 40,000 | — | 16,000 | |||||||||||
Seattle | 1 | 188,400 | 18,680 | — | 28,500 | |||||||||||
Three months ended June 30, 2019 | 3 | 630,400 | 58,680 | 87,163 | 296,500 | |||||||||||
Subsequent acquisitions | 4 | 135,938 | — | 344,772 | 178,450 | |||||||||||
Total acquisitions | 17 | 941,338 | 187,764 | 679,705 | $ | 857,900 |
Square Footage | |||||||||||||
Three Months Ended | Operating | Redevelopment | Future Development | Purchase Price | |||||||||
March 31, 2017 | 232,470 | — | 1,508,890 | $ | 218,500 | ||||||||
June 30, 2017 | 272,634 | 175,000 | 1,030,000 | 244,009 | |||||||||
September 30, 2017 | 168,424 | 104,212 | 280,000 | 110,700 | |||||||||
673,528 | 279,212 | 2,818,890 | $ | 573,209 |
(1) | Excludes $65.0 million paid in January 2019 for two properties at 10260 Campus Point Drive and 4161 Campus Point Court that we acquired in December 2018. Total purchase price was $80.0 million, of which $15.0 million was paid in December 2018. |
3. | Investments in real estate (continued) |
Property | Market | Submarket | Our Ownership Interest | RSF | ||||||||||
Consolidated joint ventures(1): | ||||||||||||||
75/125 Binney Street | Greater Boston | Cambridge | 40.0 | % | 388,270 | |||||||||
225 Binney Street | Greater Boston | Cambridge | 30.0 | % | 305,212 | |||||||||
409 and 499 Illinois Street | San Francisco | Mission Bay/SoMa | 60.0 | % | 455,069 | |||||||||
1500 Owens Street | San Francisco | Mission Bay/SoMa | 50.1 | % | 158,267 | |||||||||
Campus Pointe by Alexandria(2) | San Diego | University Town Center | 55.0 | % | 798,799 | |||||||||
9625 Towne Centre Drive | San Diego | University Town Center | 50.1 | % | 163,648 | |||||||||
Unconsolidated joint ventures(1): | ||||||||||||||
Menlo Gateway | San Francisco | Greater Stanford | 48.3 | % | (3) | 772,983 | ||||||||
1401/1413 Research Boulevard | Maryland | Rockville | 65.0 | % | (4) | (5 | ) | |||||||
704 Quince Orchard Road | Maryland | Gaithersburg | 56.8 | % | (4) | 79,931 | ||||||||
1655 and 1725 Third Street | San Francisco | Mission Bay/SoMa | 10.0 | % | 593,765 |
(5) | Joint venture with a |
Property | Consolidation Model | Voting Interest | Consolidation Analysis | Conclusion | ||||
75/125 Binney Street | VIE model | Not applicable under VIE model | We have control and benefits that can be significant to the joint venture; therefore, we are the primary beneficiary of each VIE | Consolidated | ||||
225 Binney Street | ||||||||
409 and 499 Illinois Street | ||||||||
1500 Owens Street | ||||||||
Campus Pointe by Alexandria | ||||||||
9625 Towne Centre Drive | ||||||||
Menlo Gateway | We do not control the joint venture and are therefore not the primary beneficiary | Equity method of accounting | ||||||
1401/1413 Research Boulevard | ||||||||
704 Quince Orchard Road | Voting model | Does not exceed 50% | Our voting interest is 50% or less | |||||
1655 and 1725 Third Street |
June 30, 2019 | December 31, 2018 | |||||||
Investments in real estate | $ | 1,421,509 | $ | 1,108,385 | ||||
Cash and cash equivalents | 43,412 | 42,178 | ||||||
Other assets | 133,349 | 74,901 | ||||||
Total assets | $ | 1,598,270 | $ | 1,225,464 | ||||
Secured notes payable | $ | — | $ | — | ||||
Other liabilities | 51,713 | 59,336 | ||||||
Total liabilities | 51,713 | 59,336 | ||||||
Redeemable noncontrolling interests | 1,082 | 874 | ||||||
Alexandria Real Estate Equities, Inc.’s share of equity | 775,323 | 624,349 | ||||||
Noncontrolling interests’ share of equity | 770,152 | 540,905 | ||||||
Total liabilities and equity | $ | 1,598,270 | $ | 1,225,464 |
September 30, 2017 | December 31, 2016 | |||||||
Investments in real estate | $ | 979,698 | $ | 993,710 | ||||
Cash and cash equivalents | 29,665 | 27,498 | ||||||
Other assets | 62,886 | 57,166 | ||||||
Total assets | $ | 1,072,249 | $ | 1,078,374 | ||||
Secured notes payable | $ | — | $ | — | ||||
Other liabilities | 46,054 | 66,711 | ||||||
Total liabilities | 46,054 | 66,711 | ||||||
Alexandria Real Estate Equities, Inc.’s share of equity | 541,293 | 538,069 | ||||||
Noncontrolling interests’ share of equity | 484,902 | 473,594 | ||||||
Total liabilities and equity | $ | 1,072,249 | $ | 1,078,374 | ||||
Property | June 30, 2019 | December 31, 2018 | ||||||
Menlo Gateway | $ | 279,560 | $ | 186,504 | ||||
1401/1413 Research Boulevard | 7,796 | 8,197 | ||||||
704 Quince Orchard Road | 4,593 | 4,547 | ||||||
1655 and 1725 Third Street | 35,984 | 34,917 | ||||||
Other | 6,229 | 3,342 | ||||||
$ | 334,162 | $ | 237,507 |
Maturity Date | Stated Rate | Interest Rate (1) | Debt Balance (2) | Outstanding Principal | Remaining Commitments | Total | |||||||||||||||||||
9/1/22 | (3) | 3.32 | % | 3.62 | % | $ | 94,086 | $ | 95,000 | $ | — | $ | 95,000 | ||||||||||||
9/1/22 | (3) | L+1.85 | % | N/A | $ | — | $ | — | $ | 17,000 | $ | 17,000 |
Maturity Date | Stated Rate | Interest Rate(1) | 100% at Joint Venture Level | ||||||||||||||||
Unconsolidated Joint Venture | Our Share | Debt Balance(2) | Remaining Commitments | ||||||||||||||||
1401/1413 Research Boulevard | 65.0% | 5/17/20 | L+2.50% | 5.91% | $ | 22,696 | $ | 5,997 | |||||||||||
1655 and 1725 Third Street | 10.0% | 6/29/21 | L+3.70% | 6.14% | 253,366 | 121,634 | |||||||||||||
704 Quince Orchard Road | 56.8% | 3/16/23 | L+1.95% | 4.59% | 6,997 | 7,865 | |||||||||||||
Menlo Gateway, Phase II | 48.3% | 5/1/35 | 4.53% | 4.59% | 8,019 | 147,784 | |||||||||||||
Menlo Gateway, Phase I | 48.3% | 8/10/35 | 4.15% | 4.18% | 143,334 | — | |||||||||||||
$ | 434,412 | $ | 283,280 |
(1) |
(2) | Represents outstanding principal, net of unamortized deferred financing costs. |
Year | Amount | |||
2019 | $ | 472,242 | ||
2020 | 985,377 | |||
2021 | 977,440 | |||
2022 | 943,926 | |||
2023 | 882,912 | |||
Thereafter | 6,228,900 | |||
Total | $ | 10,490,797 |
June 30, 2019 | December 31, 2018 | ||||||
Gross investment in direct financing lease | $ | 261,287 | $ | 262,111 | |||
Less: unearned income | (221,757 | ) | (222,962 | ) | |||
Net investment in direct financing lease | $ | 39,530 | $ | 39,149 |
Year | Total | |||
2019 | $ | 831 | ||
2020 | 1,705 | |||
2021 | 1,756 | |||
2022 | 1,809 | |||
2023 | 1,863 | |||
Thereafter | 253,323 | |||
Total | $ | 261,287 |
June 30, 2019 | ||||||||
Three Months Ended | Six Months Ended | |||||||
Income from rentals: | ||||||||
Revenues subject to the new lease accounting standard: | ||||||||
Operating leases | $ | 358,461 | $ | 701,802 | ||||
Direct financing lease | 604 | 1,205 | ||||||
Revenues subject to the new lease accounting standard | 359,065 | 703,007 | ||||||
Revenues subject to the revenue recognition accounting standard | 12,553 | 23,360 | ||||||
Income from rentals | $ | 371,618 | $ | 726,367 |
Year | Total | |||
2019 | $ | 7,882 | ||
2020 | 14,207 | |||
2021 | 14,257 | |||
2022 | 14,390 | |||
2023 | 14,509 | |||
Thereafter | 587,788 | |||
Total future payments under our operating leases for which we are the lessee | 653,033 | |||
Effect of discounting | (409,448 | ) | ||
Operating lease liability | $ | 243,585 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Gross operating lease costs | $ | 4,870 | $ | 3,952 | $ | 9,424 | $ | 7,820 | ||||||||
Capitalized lease costs | (388 | ) | (36 | ) | (450 | ) | (72 | ) | ||||||||
Expenses for operating leases in which we are the lessee | $ | 4,482 | $ | 3,916 | $ | 8,974 | $ | 7,748 | ||||||||
June 30, 2019 | December 31, 2018 | ||||||
Cash and cash equivalents | $ | 198,909 | $ | 234,181 | |||
Restricted cash: | |||||||
Funds held in trust under the terms of certain secured notes payable | 23,138 | 22,681 | |||||
Funds held in escrow related to construction projects and investing activities | 12,074 | 10,558 | |||||
Other | 4,104 | 4,710 | |||||
39,316 | 37,949 | ||||||
Total | $ | 238,225 | $ | 272,130 |
Investments |
7. | Investments (continued) |
September 30, 2017 | December 31, 2016 | ||||||
Available-for-sale equity securities, cost basis | $ | 55,433 | $ | 41,392 | |||
Unrealized gains | 50,104 | 25,076 | |||||
Unrealized losses | (4,915 | ) | (5,783 | ) | |||
Available-for-sale equity securities, at fair value | 100,622 | 60,685 | |||||
Investments accounted for under cost method | 384,640 | 281,792 | |||||
Total investments | $ | 485,262 | $ | 342,477 |
June 30, 2019 | |||||||||||
Cost | Adjustments | Carrying Amount | |||||||||
Investments: | |||||||||||
Publicly traded companies | $ | 186,688 | $ | 107,396 | $ | 294,084 | |||||
Entities that report NAV | 240,177 | 142,448 | 382,625 | ||||||||
Entities that do not report NAV: | |||||||||||
Entities with observable price changes | 41,187 | 73,575 | 114,762 | ||||||||
Entities without observable price changes | 266,383 | — | 266,383 | ||||||||
Total investments | $ | 734,435 | $ | 323,419 | $ | 1,057,854 |
December 31, 2018 | |||||||||||
Cost | Adjustments | Carrying Amount | |||||||||
Investments: | |||||||||||
Publicly traded companies | $ | 121,121 | $ | 62,884 | $ | 184,005 | |||||
Entities that report NAV | 204,646 | 113,159 | 317,805 | ||||||||
Entities that do not report NAV: | |||||||||||
Entities with observable price changes | 39,421 | 64,112 | 103,533 | ||||||||
Entities without observable price changes | 286,921 | — | 286,921 | ||||||||
Total investments | $ | 652,109 | $ | 240,155 | $ | 892,264 |
Three Months Ended June 30, 2019 | ||||||||||||
Unrealized Gains (Losses) | Realized Gains | Total | ||||||||||
Investments held at June 30, 2019: | ||||||||||||
Publicly traded companies | $ | 15,028 | $ | — | $ | 15,028 | ||||||
Entities that report NAV | (3,168 | ) | — | (3,168 | ) | |||||||
Entities that do not report NAV, held at period end | 4,024 | — | 4,024 | |||||||||
Total investments held at June 30, 2019 | 15,884 | — | 15,884 | |||||||||
Investment dispositions during the three months ended June 30, 2019: | ||||||||||||
Recognized in the current period | — | 5,616 | 5,616 | |||||||||
Previously recognized gains | (4,826 | ) | 4,826 | — | ||||||||
Total investment dispositions during the three months ended June 30, 2019 | (4,826 | ) | 10,442 | 5,616 | ||||||||
Investment income | $ | 11,058 | $ | 10,442 | $ | 21,500 |
7. | Investments (continued) |
Six Months Ended June 30, 2019 | ||||||||||||
Unrealized Gains | Realized Gains | Total | ||||||||||
Investments held at June 30, 2019: | ||||||||||||
Publicly traded companies | $ | 56,802 | $ | — | $ | 56,802 | ||||||
Entities that report NAV | 29,261 | — | 29,261 | |||||||||
Entities that do not report NAV, held at period end | 9,464 | — | 9,464 | |||||||||
Total investments held at June 30, 2019 | 95,527 | — | 95,527 | |||||||||
Investment dispositions during the six months ended June 30, 2019: | ||||||||||||
Recognized in the current period | — | 9,529 | 9,529 | |||||||||
Previously recognized gains | (12,263 | ) | 12,263 | — | ||||||||
Total investment dispositions during the six months ended June 30, 2019 | (12,263 | ) | 21,792 | 9,529 | ||||||||
Investment income | $ | 83,264 | $ | 21,792 | $ | 105,056 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Investment gains | $ | 2,644 | $ | 8,115 | $ | 8,425 | $ | 28,721 | |||||||
Investment losses | (1,599 | ) | (3,849 | ) | (6,418 | ) | (10,670 | ) | |||||||
Investment income | $ | 1,045 | $ | 4,266 | $ | 2,007 | $ | 18,051 |
Three Months Ended June 30, 2018 | ||||||||||||
Unrealized Gains (Losses) | Realized Gains | Total | ||||||||||
Investments held at June 30, 2018: | ||||||||||||
Publicly traded companies | $ | 1,138 | $ | — | $ | 1,138 | ||||||
Entities that report NAV | 4,683 | — | 4,683 | |||||||||
Entities that do not report NAV, held at period end | (754 | ) | — | (754 | ) | |||||||
Total investments held at June 30, 2018 | 5,067 | — | 5,067 | |||||||||
Investment dispositions during the three months ended June 30, 2018: | ||||||||||||
Recognized in the current period | — | 7,463 | 7,463 | |||||||||
Previously recognized gains | — | — | — | |||||||||
Total investment dispositions during the three months ended June 30, 2018 | — | 7,463 | 7,463 | |||||||||
Investment income | $ | 5,067 | $ | 7,463 | $ | 12,530 |
Six Months Ended June 30, 2018 | ||||||||||||
Unrealized Gains | Realized Gains | Total | ||||||||||
Investments held at June 30, 2018: | ||||||||||||
Publicly traded companies | $ | 52,026 | $ | — | $ | 52,026 | ||||||
Entities that report NAV | 19,770 | — | 19,770 | |||||||||
Entities that do not report NAV, held at period end | 10,289 | — | 10,289 | |||||||||
Total investments held at June 30, 2018 | 82,085 | — | 82,085 | |||||||||
Investment dispositions during the six months ended June 30, 2018: | ||||||||||||
Recognized in the current period | — | 16,006 | 16,006 | |||||||||
Previously recognized gains | (4,789 | ) | 4,789 | — | ||||||||
Total investment dispositions during the six months ended June 30, 2018 | (4,789 | ) | 20,795 | 16,006 | ||||||||
Investment income | $ | 77,296 | $ | 20,795 | $ | 98,091 |
8. | Other assets |
June 30, 2019 | December 31, 2018 | ||||||
Acquired below-market ground leases | $ | — | (1) | $ | 17,434 | ||
Acquired in-place leases | 158,569 | 132,906 | |||||
Deferred compensation plan | 20,178 | 19,238 | |||||
Deferred financing costs – $2.2 billion unsecured senior line of credit | 14,481 | 16,060 | |||||
Deposits | 22,054 | 12,974 | |||||
Furniture, fixtures, and equipment | 16,725 | 14,787 | |||||
Interest rate hedge assets | 38 | 2,606 | |||||
Net investment in direct financing lease | 39,530 | 39,149 | |||||
Notes receivable | 482 | 528 | |||||
Operating lease right-of-use asset(2) | 237,025 | — | |||||
Other assets | 15,437 | 19,861 | |||||
Prepaid expenses | 15,008 | 13,690 | |||||
Property, plant, and equipment | 155,100 | 81,024 | |||||
Total | $ | 694,627 | $ | 370,257 |
September 30, 2017 | December 31, 2016 | ||||||
Acquired below-market ground leases | $ | 12,741 | $ | 12,913 | |||
Acquired in-place leases | 66,188 | 63,408 | |||||
Deferred compensation plan | 14,832 | 11,632 | |||||
Deferred financing costs – $1.65 billion unsecured senior line of credit | 11,453 | 14,239 | |||||
Deposits | 3,592 | 3,302 | |||||
Furniture, fixtures, and equipment | 11,443 | 12,839 | |||||
Interest rate hedge assets | 3,733 | 4,115 | |||||
Net investment in direct financing lease | 38,057 | 37,297 | |||||
Notes receivable | 635 | 694 | |||||
Prepaid expenses | 11,329 | 9,724 | |||||
Property, plant, and equipment | 27,263 | 19,891 | |||||
Other assets | 11,790 | 11,143 | |||||
Total | $ | 213,056 | $ | 201,197 |
September 30, 2017 | December 31, 2016 | |||||||
Gross investment in direct financing lease | $ | 263,980 | $ | 264,954 | ||||
Less: unearned income | (225,923 | ) | (227,657 | ) | ||||
Net investment in direct financing lease | $ | 38,057 | $ | 37,297 |
Year | Total | |||
2017 | $ | 261 | ||
2018 | 1,607 | |||
2019 | 1,655 | |||
2020 | 1,705 | |||
2021 | 1,756 | |||
Thereafter | 256,996 | |||
Total | $ | 263,980 |
(2) | Refer to Note 2 – “Summary of Significant Accounting Policies” and Note 5 – “Leases” to these unaudited consolidated financial statements for additional information. |
Fair value measurements |
June 30, 2019 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Investments in publicly traded companies | $ | 294,084 | $ | 294,084 | $ | — | $ | — | ||||||||
Interest rate hedge agreements | $ | 38 | $ | — | $ | 38 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedge agreements | $ | 1,699 | $ | — | $ | 1,699 | $ | — |
September 30, 2017 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Assets: | ||||||||||||||||
Available-for-sale equity securities | $ | 100,622 | $ | 100,622 | $ | — | $ | — | ||||||||
Interest rate hedge agreements | $ | 3,733 | $ | — | $ | 3,733 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedge agreements | $ | 583 | $ | — | $ | 583 | $ | — |
December 31, 2018 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Investments in publicly traded companies | $ | 184,005 | $ | 184,005 | $ | — | $ | — | ||||||||
Interest rate hedge agreements | $ | 2,606 | $ | — | $ | 2,606 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedge agreements | $ | 768 | $ | — | $ | 768 | $ | — |
December 31, 2016 | ||||||||||||||||
Description | Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
Assets: | ||||||||||||||||
Available-for-sale equity securities | $ | 60,685 | $ | 60,685 | $ | — | $ | — | ||||||||
Interest rate hedge agreements | $ | 4,115 | $ | — | $ | 4,115 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Interest rate hedge agreements | $ | 3,587 | $ | — | $ | 3,587 | $ | — |
Fair value measurements (continued) |
September 30, 2017 | December 31, 2016 | ||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||
Assets: | |||||||||||||||
Available-for-sale equity securities | $ | 100,622 | $ | 100,622 | $ | 60,685 | $ | 60,685 | |||||||
Interest rate hedge agreements | $ | 3,733 | $ | 3,733 | $ | 4,115 | $ | 4,115 | |||||||
Liabilities: | |||||||||||||||
Interest rate hedge agreements | $ | 583 | $ | 583 | $ | 3,587 | $ | 3,587 | |||||||
Secured notes payable | $ | 1,153,890 | $ | 1,156,769 | $ | 1,011,292 | $ | 1,016,782 | |||||||
Unsecured senior notes payable | $ | 2,801,290 | $ | 2,943,568 | $ | 2,378,262 | $ | 2,431,470 | |||||||
Unsecured senior line of credit | $ | 314,000 | $ | 313,993 | $ | 28,000 | $ | 27,998 | |||||||
Unsecured senior bank term loans | $ | 547,860 | $ | 550,371 | $ | 746,471 | $ | 750,422 |
June 30, 2019 | December 31, 2018 | ||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||
Assets: | |||||||||||||||
Investments in privately held entities that report NAV | $ | 382,625 | $ | 382,625 | $ | 317,805 | $ | 317,805 | |||||||
Liabilities: | |||||||||||||||
Secured notes payable | $ | 354,186 | $ | 367,193 | $ | 630,547 | $ | 638,860 | |||||||
Unsecured senior notes payable | $ | 5,140,914 | $ | 5,499,248 | $ | 4,292,293 | $ | 4,288,335 | |||||||
$2.2 billion unsecured senior line of credit | $ | 514,000 | $ | 513,922 | $ | 208,000 | $ | 208,106 | |||||||
Unsecured senior bank term loan | $ | 347,105 | $ | 349,250 | $ | 347,415 | $ | 350,240 |
Secured and unsecured senior debt |
Fixed-Rate/Hedged Variable-Rate Debt | Unhedged Variable-Rate Debt | Weighted-Average | |||||||||||||||||
Interest | Remaining Term (in years) | ||||||||||||||||||
Total | Percentage | Rate (1) | |||||||||||||||||
Secured notes payable | $ | 354,186 | $ | — | $ | 354,186 | 5.6 | % | 3.58 | % | 4.5 | ||||||||
Unsecured senior notes payable | 5,140,914 | — | 5,140,914 | 80.8 | 4.16 | 7.3 | |||||||||||||
$2.2 billion unsecured senior line of credit | — | 514,000 | 514,000 | 8.1 | 3.53 | 4.6 | |||||||||||||
Unsecured senior bank term loan | 347,105 | — | 347,105 | 5.5 | 3.62 | 5.5 | |||||||||||||
Total/weighted-average | $ | 5,842,205 | $ | 514,000 | $ | 6,356,205 | 100.0 | % | 4.05 | % | 6.8 | ||||||||
Percentage of total debt | 92 | % | 8 | % | 100 | % |
Fixed-Rate/Hedged Variable-Rate Debt | Unhedged Variable-Rate Debt | Weighted-Average | |||||||||||||||||
Interest | Remaining Term (in years) | ||||||||||||||||||
Total | Percentage | Rate (1) | |||||||||||||||||
Secured notes payable | $ | 902,207 | $ | 251,683 | $ | 1,153,890 | 24.0 | % | 3.80 | % | 2.8 | ||||||||
Unsecured senior notes payable | 2,801,290 | — | 2,801,290 | 58.2 | 4.16 | 7.0 | |||||||||||||
$1.65 billion unsecured senior line of credit | — | 314,000 | 314,000 | 6.5 | 2.00 | 4.1 | |||||||||||||
2019 Unsecured Senior Bank Term Loan | 199,543 | — | 199,543 | 4.1 | 2.84 | 1.3 | |||||||||||||
2021 Unsecured Senior Bank Term Loan | 348,317 | — | 348,317 | 7.2 | 2.56 | 3.3 | |||||||||||||
Total/weighted average | $ | 4,251,357 | $ | 565,683 | $ | 4,817,040 | 100.0 | % | 3.76 | % | 5.3 | ||||||||
Percentage of total debt | 88 | % | 12 | % | 100 | % |
(1) | Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to our interest rate hedge agreements, amortization of loan fees, amortization of debt premiums (discounts), and other bank fees. |
Secured and unsecured senior debt (continued) |
Stated Rate | Interest Rate (1) | Maturity Date (2) | Principal Payments Remaining for the Periods Ending December 31, | Unamortized (Deferred Financing Cost), (Discount) Premium | |||||||||||||||||||||||||||||||||||||||||
Debt | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Principal | Total | |||||||||||||||||||||||||||||||||||||
Secured notes payable | |||||||||||||||||||||||||||||||||||||||||||||
San Diego | 4.66 | % | 4.90 | % | 1/1/23 | $ | 851 | $ | 1,763 | $ | 1,852 | $ | 1,942 | $ | 26,259 | $ | — | $ | 32,667 | $ | (230 | ) | $ | 32,437 | |||||||||||||||||||||
Greater Boston | 3.93 | % | 3.19 | 3/10/23 | 760 | 1,566 | 1,628 | 1,693 | 74,517 | — | 80,164 | 2,038 | 82,202 | ||||||||||||||||||||||||||||||||
Greater Boston | 4.82 | % | 3.40 | 2/6/24 | 1,545 | 3,206 | 3,395 | 3,564 | 3,742 | 183,527 | 198,979 | 12,300 | 211,279 | ||||||||||||||||||||||||||||||||
San Francisco | 4.14 | % | 4.42 | 7/1/26 | — | — | — | — | — | 28,200 | 28,200 | (683 | ) | 27,517 | |||||||||||||||||||||||||||||||
San Francisco | 6.50 | % | 6.50 | 7/1/36 | 23 | 25 | 26 | 28 | 30 | 619 | 751 | — | 751 | ||||||||||||||||||||||||||||||||
Secured debt weighted-average interest rate/subtotal | 4.55 | % | 3.58 | 3,179 | 6,560 | 6,901 | 7,227 | 104,548 | 212,346 | 340,761 | 13,425 | 354,186 | |||||||||||||||||||||||||||||||||
$2.2 billion unsecured senior line of credit | L+0.825 | % | 3.53 | 1/28/24 | — | — | — | — | — | 514,000 | 514,000 | — | 514,000 | ||||||||||||||||||||||||||||||||
Unsecured senior bank term loan(3) | L+0.90 | % | 3.62 | 1/2/25 | — | — | — | — | — | 350,000 | 350,000 | (2,895 | ) | 347,105 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable(3) | 2.75 | % | 2.96 | 1/15/20 | — | 400,000 | — | — | — | — | 400,000 | (453 | ) | 399,547 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable(3) | 4.60 | % | 4.75 | 4/1/22 | — | — | — | 550,000 | — | — | 550,000 | (1,791 | ) | 548,209 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 3.90 | % | 4.04 | 6/15/23 | — | — | — | — | 500,000 | — | 500,000 | (2,360 | ) | 497,640 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable – green bonds | 4.00 | % | 4.03 | 1/15/24 | — | — | — | — | — | 650,000 | 650,000 | (655 | ) | 649,345 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 3.45 | % | 3.62 | 4/30/25 | — | — | — | — | — | 600,000 | 600,000 | (5,097 | ) | 594,903 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 4.30 | % | 4.50 | 1/15/26 | — | — | — | — | — | 300,000 | 300,000 | (3,178 | ) | 296,822 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable – green bonds | 3.80 | % | 3.96 | 4/15/26 | — | — | — | — | — | 350,000 | 350,000 | (3,321 | ) | 346,679 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 3.95 | % | 4.13 | 1/15/27 | — | — | — | — | — | 350,000 | 350,000 | (3,795 | ) | 346,205 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 3.95 | % | 4.07 | 1/15/28 | — | — | — | — | — | 425,000 | 425,000 | (3,610 | ) | 421,390 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 4.50 | % | 4.60 | 7/30/29 | — | — | — | — | — | 300,000 | 300,000 | (2,235 | ) | 297,765 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 4.70 | % | 4.81 | 7/1/30 | — | — | — | — | — | 450,000 | 450,000 | (4,087 | ) | 445,913 | |||||||||||||||||||||||||||||||
Unsecured senior notes payable | 4.85 | % | 4.93 | 4/15/49 | — | — | — | — | — | 300,000 | 300,000 | (3,504 | ) | 296,496 | |||||||||||||||||||||||||||||||
Unsecured debt weighted-average interest rate/subtotal | 4.08 | — | 400,000 | — | 550,000 | 500,000 | 4,589,000 | 6,039,000 | (36,981 | ) | 6,002,019 | ||||||||||||||||||||||||||||||||||
Weighted-average interest rate/total | 4.05 | % | $ | 3,179 | $ | 406,560 | $ | 6,901 | $ | 557,227 | $ | 604,548 | $ | 4,801,346 | $ | 6,379,761 | $ | (23,556 | ) | $ | 6,356,205 |
Stated Rate | Interest Rate (1) | Maturity | Unamortized (Deferred Financing Cost), (Discount)/Premium | ||||||||||||||||||
Debt | Date (2) | Principal | Total | ||||||||||||||||||
Secured notes payable | |||||||||||||||||||||
Greater Boston | L+1.35 | % | 2.99 | % | 8/23/18 | $ | 211,940 | $ | (660 | ) | $ | 211,280 | |||||||||
Greater Boston | L+1.50 | % | 3.09 | 1/28/19 | (3) | 317,979 | (1,595 | ) | 316,384 | ||||||||||||
Greater Boston | L+2.00 | % | 3.89 | 4/20/19 | (3) | 179,764 | (2,104 | ) | 177,660 | ||||||||||||
Greater Boston, Seattle, and Maryland | 7.75 | % | 8.17 | 4/1/20 | 108,940 | (835 | ) | 108,105 | |||||||||||||
San Diego | 4.66 | % | 5.03 | 1/1/23 | 35,370 | (345 | ) | 35,025 | |||||||||||||
Greater Boston | 3.93 | % | 3.20 | 3/10/23 | 82,000 | 2,957 | 84,957 | ||||||||||||||
Greater Boston | 4.82 | % | 3.40 | 2/6/24 | 203,000 | 16,706 | 219,706 | ||||||||||||||
San Francisco | 6.50 | % | 6.78 | 7/1/36 | 773 | — | 773 | ||||||||||||||
Secured debt weighted-average interest rate/subtotal | 3.80 | % | 3.80 | 1,139,766 | 14,124 | 1,153,890 | |||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 2.84 | 1/3/19 | 200,000 | (457 | ) | 199,543 | |||||||||||||
2021 Unsecured Senior Bank Term Loan | L+1.10 | % | 2.56 | 1/15/21 | 350,000 | (1,683 | ) | 348,317 | |||||||||||||
$1.65 billion unsecured senior line of credit | L+1.00 | % | 2.00 | 10/29/21 | 314,000 | N/A | 314,000 | ||||||||||||||
Unsecured senior notes payable | 2.75 | % | 2.96 | 1/15/20 | 400,000 | (1,822 | ) | 398,178 | |||||||||||||
Unsecured senior notes payable | 4.60 | % | 4.75 | 4/1/22 | 550,000 | (2,922 | ) | 547,078 | |||||||||||||
Unsecured senior notes payable | 3.90 | % | 4.04 | 6/15/23 | 500,000 | (3,381 | ) | 496,619 | |||||||||||||
Unsecured senior notes payable | 4.30 | % | 4.52 | 1/15/26 | 300,000 | (3,998 | ) | 296,002 | |||||||||||||
Unsecured senior notes payable | 3.95 | % | 4.14 | 1/15/27 | 350,000 | (4,638 | ) | 345,362 | |||||||||||||
Unsecured senior notes payable | 3.95 | % | 4.09 | 1/15/28 | 425,000 | (4,334 | ) | 420,666 | |||||||||||||
Unsecured senior notes payable | 4.50 | % | 4.62 | 7/30/29 | 300,000 | (2,615 | ) | 297,385 | |||||||||||||
Unsecured debt weighted average/subtotal | 3.75 | 3,689,000 | (25,850 | ) | 3,663,150 | ||||||||||||||||
Weighted-average interest rate/total | 3.76 | % | $ | 4,828,766 | $ | (11,726 | ) | $ | 4,817,040 |
(1) | Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to our interest rate hedge agreements, amortization of loan fees, amortization of debt premiums (discounts), and other bank fees. |
(2) | Reflects any extension options that we control. |
(3) | Refer to |
Secured and unsecured senior debt (continued) |
Property/Market | Stated Rate | Maturity Date | Outstanding Principal Balance | Remaining Commitments | Aggregate Commitments | ||||||||||||||||
75/125 Binney Street/Greater Boston | L+1.35 | % | 8/23/18 | $ | 211,940 | $ | — | $ | 211,940 | ||||||||||||
50 and 60 Binney Street/Greater Boston | L+1.50 | % | 1/28/19 | (1) | 317,979 | 32,021 | 350,000 | ||||||||||||||
100 Binney Street/Greater Boston | L+2.00 | % | (2) | 4/20/19 | (3) | 179,764 | 124,517 | 304,281 | |||||||||||||
$ | 709,683 | $ | 156,538 | $ | 866,221 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Gross interest | $ | 64,553 | $ | 53,624 | $ | 122,162 | $ | 103,899 | |||||||
Capitalized interest | (21,674 | ) | (15,527 | ) | (40,183 | ) | (28,887 | ) | |||||||
Interest expense | $ | 42,879 | $ | 38,097 | $ | 81,979 | $ | 75,012 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Gross interest | $ | 48,123 | $ | 40,753 | $ | 137,888 | $ | 116,520 | |||||||
Capitalized interest | (17,092 | ) | (14,903 | ) | (45,325 | ) | (40,790 | ) | |||||||
Interest expense | $ | 31,031 | $ | 25,850 | $ | 92,563 | $ | 75,730 |
Interest rate hedge agreements |
Interest Rate Hedge Type | Number of Contracts | Weighted-Average Interest Pay/ Cap Rate(1) | Fair Value as of 9/30/17 | Notional Amount in Effect as of | ||||||||||||||||||||||||
Effective Date | Maturity Date | 9/30/17 | 12/31/17 | 12/31/18 | 12/31/19 | |||||||||||||||||||||||
Swap | March 31, 2017 | March 31, 2018 | 4 | 0.78% | $ | 692 | $ | 250,000 | $ | 250,000 | $ | — | $ | — | ||||||||||||||
Swap | March 31, 2017 | March 31, 2018 | 11 | 1.51% | (554 | ) | 650,000 | 650,000 | — | — | ||||||||||||||||||
Cap | July 29, 2016 | April 20, 2019 | 2 | 2.00% | 66 | 108,000 | 126,000 | 150,000 | — | |||||||||||||||||||
Swap | March 29, 2018 | March 31, 2019 | 8 | 1.16% | 2,975 | — | — | 600,000 | — | |||||||||||||||||||
Swap | March 29, 2019 | March 31, 2020 | 1 | 1.89% | (29 | ) | — | — | — | 100,000 | ||||||||||||||||||
Total | $ | 3,150 | $ | 1,008,000 | $ | 1,026,000 | $ | 750,000 | $ | 100,000 |
Number of Contracts as of 6/30/2019 | Weighted-Average Interest Pay Rate(1) | Fair Value as of | Notional Amount in Effect as of | ||||||||||||||||
Effective Date | Maturity Date | 6/30/19 | 6/30/19 | 12/31/19 | |||||||||||||||
March 29, 2019 | March 31, 2020 | 1 | 1.89% | $ | 38 | $ | 100,000 | $ | 100,000 | ||||||||||
March 29, 2019 | March 31, 2020 | 3 | 2.84% | (1,699 | ) | 250,000 | 75,000 | ||||||||||||
Total | $ | (1,661 | ) | $ | 350,000 | $ | 175,000 | (2) |
(1) | In addition to the interest pay rate for each |
(2) | Excludes notional amounts aggregating $175.0 million related to the interest rate hedge agreements terminated in July 2019. Refer to the discussion below. |
Accounts payable, accrued expenses, and tenant security deposits |
June 30, 2019 | December 31, 2018 | ||||||
Accounts payable and accrued expenses | $ | 149,302 | $ | 215,539 | |||
Accrued construction | 281,440 | 275,882 | |||||
Acquired below-market leases | 154,028 | 134,808 | |||||
Conditional asset retirement obligations | 14,633 | 10,343 | |||||
Deferred rent liabilities(1) | 2,424 | 29,547 | |||||
Interest rate hedge liabilities | 1,699 | 768 | |||||
Operating lease liability(1) | 243,585 | — | |||||
Unearned rent and tenant security deposits | 238,774 | 250,923 | |||||
Other liabilities | 71,532 | 63,897 | |||||
Total | $ | 1,157,417 | $ | 981,707 |
September 30, 2017 | December 31, 2016 | ||||||
Accounts payable and accrued expenses | $ | 338,296 | $ | 366,174 | |||
Acquired below-market leases | 92,388 | 59,509 | |||||
Conditional asset retirement obligations | 7,457 | 3,095 | |||||
Deferred rent liabilities | 27,747 | 34,426 | |||||
Interest rate hedge liabilities | 583 | 3,587 | |||||
Unearned rent and tenant security deposits | 240,501 | 231,416 | |||||
Other liabilities | 33,098 | 33,464 | |||||
Total | $ | 740,070 | $ | 731,671 |
(1) | Refer to Note 2 – “Summary of Significant Accounting Policies” and Note 5 – “Leases” to these unaudited consolidated financial statements for additional information. |
Earnings per share |
13. | Earnings per share (continued) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 87,179 | $ | 60,547 | $ | 223,997 | $ | 202,065 | |||||||
Net income attributable to noncontrolling interests | (8,412 | ) | (5,817 | ) | (16,071 | ) | (11,705 | ) | |||||||
Dividends on preferred stock | (1,005 | ) | (1,302 | ) | (2,031 | ) | (2,604 | ) | |||||||
Preferred stock redemption charge | — | — | (2,580 | ) | — | ||||||||||
Net income attributable to unvested restricted stock awards | (1,432 | ) | (1,412 | ) | (3,134 | ) | (2,765 | ) | |||||||
Numerator for basic and diluted EPS – net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 76,330 | $ | 52,016 | $ | 200,181 | $ | 184,991 | |||||||
Denominator for basic EPS – weighted-average shares of common stock outstanding | 111,433 | 101,881 | 111,245 | 100,878 | |||||||||||
Dilutive effect of forward equity sales agreements | 68 | 355 | 34 | 313 | |||||||||||
Denominator for diluted EPS – weighted-average shares of common stock outstanding | 111,501 | 102,236 | 111,279 | 101,191 | |||||||||||
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders: | |||||||||||||||
Basic | $ | 0.68 | $ | 0.51 | $ | 1.80 | $ | 1.83 | |||||||
Diluted | $ | 0.68 | $ | 0.51 | $ | 1.80 | $ | 1.83 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | 59,546 | $ | 28,559 | $ | 148,597 | $ | (69,591 | ) | ||||||
Net income attributable to noncontrolling interests | (5,773 | ) | (4,084 | ) | (18,892 | ) | (11,614 | ) | |||||||
Dividends on preferred stock | (1,302 | ) | (5,007 | ) | (6,364 | ) | (16,388 | ) | |||||||
Preferred stock redemption charge | — | (13,095 | ) | (11,279 | ) | (25,614 | ) | ||||||||
Net income attributable to unvested restricted stock awards | (1,198 | ) | (921 | ) | (3,498 | ) | (2,807 | ) | |||||||
Numerator for basic and diluted EPS – net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 51,273 | $ | 5,452 | $ | 108,564 | $ | (126,014 | ) | ||||||
Denominator for basic EPS – weighted-average shares of common stock outstanding | 92,598 | 76,651 | 90,336 | 74,526 | |||||||||||
Dilutive effect of forward equity sales agreements | 698 | 751 | 430 | — | |||||||||||
Denominator for diluted EPS – adjusted – weighted-average shares of common stock outstanding | 93,296 | 77,402 | 90,766 | 74,526 | |||||||||||
Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted | $ | 0.55 | $ | 0.07 | $ | 1.20 | $ | (1.69 | ) |
Stockholders’ equity |
Shares Issued | Average Issue Price per Share | Gross Proceeds | Net Proceeds | ||||||||||||
Cumulative activity through December 31, 2018 | 855,458 | $ | 127.45 | $ | 109,031 | $ | 106,956 | ||||||||
Six months ended June 30, 2019 | 602,484 | $ | 145.58 | 87,710 | 86,094 | ||||||||||
Cumulative activity through June 30, 2019 | 1,457,942 | 196,741 | $ | 193,050 | |||||||||||
Common stock reserved for settlement of the forward equity sales agreements | 530,791 | ||||||||||||||
Remaining availability as of June 30, 2019 | 22,468 | ||||||||||||||
Total August 2018 ATM common stock offering program | $ | 750,000 |
14. | Stockholders’ equity (continued) |
Net Unrealized Gains (Losses) on: | ||||||||||||
Interest Rate Hedge Agreements | Foreign Currency Translation | Total | ||||||||||
Balance as of December 31, 2018 | $ | 1,838 | $ | (12,273 | ) | $ | (10,435 | ) | ||||
Other comprehensive (loss) income before reclassifications | (1,684 | ) | 2,800 | 1,116 | ||||||||
Amounts reclassified from other comprehensive income to net income | (1,815 | ) | — | (1,815 | ) | |||||||
Net other comprehensive (loss) income | (3,499 | ) | 2,800 | (699 | ) | |||||||
Balance as of June 30, 2019 | $ | (1,661 | ) | $ | (9,473 | ) | $ | (11,134 | ) |
Net Unrealized Gain (Loss) on: | ||||||||||||||||
Available-for- Sale Equity Securities | Interest Rate Hedge Agreements | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2016 | $ | 19,293 | $ | 405 | $ | (14,343 | ) | $ | 5,355 | |||||||
Other comprehensive income before reclassifications | 23,414 | 812 | 7,592 | 31,818 | ||||||||||||
Amounts reclassified from other comprehensive income | 2,482 | 1,810 | 2,421 | 6,713 | ||||||||||||
25,896 | 2,622 | 10,013 | 38,531 | |||||||||||||
Amounts attributable to noncontrolling interests | — | — | (22 | ) | (22 | ) | ||||||||||
Net other comprehensive income | 25,896 | 2,622 | 9,991 | 38,509 | ||||||||||||
Balance as of September 30, 2017 | $ | 45,189 | $ | 3,027 | $ | (4,352 | ) | $ | 43,864 |
Noncontrolling interests |
Assets classified as held for sale |
June 30, 2019 | December 31, 2018 | ||||||
Total assets | $ | 52,603 | $ | 31,260 | |||
Total liabilities | (1,910 | ) | (2,476 | ) | |||
Total accumulated other comprehensive income | 728 | 768 | |||||
Net assets classified as held for sale | $ | 51,421 | $ | 29,552 |
September 30, 2017 | December 31, 2016 | ||||||
Total assets | $ | 41,658 | $ | 39,643 | |||
Total liabilities | (2,480 | ) | (2,342 | ) | |||
Total accumulated other comprehensive (income) loss | (1,082 | ) | 828 | ||||
Net assets classified as held for sale – Asia | $ | 38,096 | $ | 38,129 |
17. | Subsequent events |
Condensed consolidating financial information |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Investments in real estate | $ | — | $ | — | $ | 10,046,521 | $ | — | $ | 10,046,521 | $ | — | $ | — | $ | 12,872,824 | $ | — | $ | 12,872,824 | ||||||||||||||||||
Investments in unconsolidated real estate JVs | — | — | 33,692 | — | 33,692 | — | — | 334,162 | — | 334,162 | ||||||||||||||||||||||||||||
Cash and cash equivalents | 37,916 | — | 80,646 | — | 118,562 | 89,615 | — | 109,294 | — | 198,909 | ||||||||||||||||||||||||||||
Restricted cash | 138 | — | 27,575 | — | 27,713 | 194 | — | 39,122 | — | 39,316 | ||||||||||||||||||||||||||||
Tenant receivables | — | — | 9,899 | — | 9,899 | — | — | 9,228 | — | 9,228 | ||||||||||||||||||||||||||||
Deferred rent | — | — | 402,353 | — | 402,353 | — | — | 585,082 | — | 585,082 | ||||||||||||||||||||||||||||
Deferred leasing costs | — | — | 208,265 | — | 208,265 | — | — | 247,468 | — | 247,468 | ||||||||||||||||||||||||||||
Investments | — | 1,689 | 483,573 | — | 485,262 | — | 1,203 | 1,056,651 | — | 1,057,854 | ||||||||||||||||||||||||||||
Investments in and advances to affiliates | 9,158,536 | 8,276,072 | 168,449 | (17,603,057 | ) | — | 13,719,957 | 12,260,877 | 249,708 | (26,230,542 | ) | — | ||||||||||||||||||||||||||
Other assets | 48,095 | — | 164,961 | — | 213,056 | 55,481 | — | 639,146 | — | 694,627 | ||||||||||||||||||||||||||||
Total assets | $ | 9,244,685 | $ | 8,277,761 | $ | 11,625,934 | $ | (17,603,057 | ) | $ | 11,545,323 | $ | 13,865,247 | $ | 12,262,080 | $ | 16,142,685 | $ | (26,230,542 | ) | $ | 16,039,470 | ||||||||||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 1,153,890 | $ | — | $ | 1,153,890 | $ | — | $ | — | $ | 354,186 | $ | — | $ | 354,186 | ||||||||||||||||||
Unsecured senior notes payable | 2,801,290 | — | — | — | 2,801,290 | 5,140,914 | — | — | — | 5,140,914 | ||||||||||||||||||||||||||||
Unsecured senior line of credit | 314,000 | — | — | — | 314,000 | 514,000 | — | — | — | 514,000 | ||||||||||||||||||||||||||||
Unsecured senior bank term loans | 547,860 | — | — | — | 547,860 | |||||||||||||||||||||||||||||||||
Unsecured senior bank term loan | 347,105 | — | — | — | 347,105 | |||||||||||||||||||||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 91,163 | — | 648,907 | — | 740,070 | 119,829 | — | 1,037,588 | — | 1,157,417 | ||||||||||||||||||||||||||||
Dividends payable | 83,402 | — | — | — | 83,402 | 114,379 | — | — | — | 114,379 | ||||||||||||||||||||||||||||
Total liabilities | 3,837,715 | — | 1,802,797 | — | 5,640,512 | 6,236,227 | — | 1,391,774 | — | 7,628,001 | ||||||||||||||||||||||||||||
Redeemable noncontrolling interests | — | — | 11,418 | — | 11,418 | — | — | 10,994 | — | 10,994 | ||||||||||||||||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 5,406,970 | 8,277,761 | 9,325,296 | (17,603,057 | ) | 5,406,970 | 7,629,020 | 12,262,080 | 13,968,462 | (26,230,542 | ) | 7,629,020 | ||||||||||||||||||||||||||
Noncontrolling interests | — | — | 486,423 | — | 486,423 | — | — | 771,455 | — | 771,455 | ||||||||||||||||||||||||||||
Total equity | 5,406,970 | 8,277,761 | 9,811,719 | (17,603,057 | ) | 5,893,393 | 7,629,020 | 12,262,080 | 14,739,917 | (26,230,542 | ) | 8,400,475 | ||||||||||||||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 9,244,685 | $ | 8,277,761 | $ | 11,625,934 | $ | (17,603,057 | ) | $ | 11,545,323 | $ | 13,865,247 | $ | 12,262,080 | $ | 16,142,685 | $ | (26,230,542 | ) | $ | 16,039,470 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Investments in real estate | $ | — | $ | — | $ | 11,913,693 | $ | — | $ | 11,913,693 | |||||||||
Investments in unconsolidated real estate JVs | — | — | 237,507 | — | 237,507 | ||||||||||||||
Cash and cash equivalents | 119,112 | — | 115,069 | — | 234,181 | ||||||||||||||
Restricted cash | 193 | — | 37,756 | — | 37,949 | ||||||||||||||
Tenant receivables | — | — | 9,798 | — | 9,798 | ||||||||||||||
Deferred rent | — | — | 530,237 | — | 530,237 | ||||||||||||||
Deferred leasing costs | — | — | 239,070 | — | 239,070 | ||||||||||||||
Investments | — | 1,262 | 891,002 | — | 892,264 | ||||||||||||||
Investments in and advances to affiliates | 12,235,577 | 10,949,631 | 222,983 | (23,408,191 | ) | — | |||||||||||||
Other assets | 56,353 | — | 313,904 | — | 370,257 | ||||||||||||||
Total assets | $ | 12,411,235 | $ | 10,950,893 | $ | 14,511,019 | $ | (23,408,191 | ) | $ | 14,464,956 | ||||||||
Liabilities, Noncontrolling Interests, and Equity | |||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 630,547 | $ | — | $ | 630,547 | |||||||||
Unsecured senior notes payable | 4,292,293 | — | — | — | 4,292,293 | ||||||||||||||
Unsecured senior line of credit | 208,000 | — | — | — | 208,000 | ||||||||||||||
Unsecured senior bank term loan | 347,415 | — | — | — | 347,415 | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 111,282 | — | 870,425 | — | 981,707 | ||||||||||||||
Dividends payable | 110,280 | — | — | — | 110,280 | ||||||||||||||
Total liabilities | 5,069,270 | — | 1,500,972 | — | 6,570,242 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 10,786 | — | 10,786 | ||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 7,341,965 | 10,950,893 | 12,457,298 | (23,408,191 | ) | 7,341,965 | |||||||||||||
Noncontrolling interests | — | — | 541,963 | — | 541,963 | ||||||||||||||
Total equity | 7,341,965 | 10,950,893 | 12,999,261 | (23,408,191 | ) | 7,883,928 | |||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 12,411,235 | $ | 10,950,893 | $ | 14,511,019 | $ | (23,408,191 | ) | $ | 14,464,956 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Investments in real estate | $ | — | $ | — | $ | 9,077,972 | $ | — | $ | 9,077,972 | |||||||||
Investments in unconsolidated real estate JVs | — | — | 50,221 | — | 50,221 | ||||||||||||||
Cash and cash equivalents | 30,603 | — | 94,429 | — | 125,032 | ||||||||||||||
Restricted cash | 102 | — | 16,232 | — | 16,334 | ||||||||||||||
Tenant receivables | — | — | 9,744 | — | 9,744 | ||||||||||||||
Deferred rent | — | — | 335,974 | — | 335,974 | ||||||||||||||
Deferred leasing costs | — | — | 195,937 | — | 195,937 | ||||||||||||||
Investments | — | 4,440 | 338,037 | — | 342,477 | ||||||||||||||
Investments in and advances to affiliates | 8,152,965 | 7,444,919 | 151,594 | (15,749,478 | ) | — | |||||||||||||
Other assets | 45,646 | — | 155,551 | — | 201,197 | ||||||||||||||
Total assets | $ | 8,229,316 | $ | 7,449,359 | $ | 10,425,691 | $ | (15,749,478 | ) | $ | 10,354,888 | ||||||||
Liabilities, Noncontrolling Interests, and Equity | |||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 1,011,292 | $ | — | $ | 1,011,292 | |||||||||
Unsecured senior notes payable | 2,378,262 | — | — | — | 2,378,262 | ||||||||||||||
Unsecured senior line of credit | 28,000 | — | — | — | 28,000 | ||||||||||||||
Unsecured senior bank term loans | 746,471 | — | — | — | 746,471 | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 104,044 | — | 627,627 | — | 731,671 | ||||||||||||||
Dividends payable | 76,743 | — | 171 | — | 76,914 | ||||||||||||||
Total liabilities | 3,333,520 | — | 1,639,090 | — | 4,972,610 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 11,307 | — | 11,307 | ||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 4,895,796 | 7,449,359 | 8,300,119 | (15,749,478 | ) | 4,895,796 | |||||||||||||
Noncontrolling interests | — | — | 475,175 | — | 475,175 | ||||||||||||||
Total equity | 4,895,796 | 7,449,359 | 8,775,294 | (15,749,478 | ) | 5,370,971 | |||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 8,229,316 | $ | 7,449,359 | $ | 10,425,691 | $ | (15,749,478 | ) | $ | 10,354,888 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Rental | $ | — | $ | — | $ | 216,021 | $ | — | $ | 216,021 | ||||||||||||||||||||||||||||
Tenant recoveries | — | — | 67,058 | — | 67,058 | |||||||||||||||||||||||||||||||||
Income from rentals | $ | — | $ | — | $ | 371,618 | $ | — | $ | 371,618 | ||||||||||||||||||||||||||||
Other income | 3,230 | (2,589 | ) | 5,736 | (4,086 | ) | 2,291 | 5,198 | — | 2,531 | (5,491 | ) | 2,238 | |||||||||||||||||||||||||
Total revenues | 3,230 | (2,589 | ) | 288,815 | (4,086 | ) | 285,370 | 5,198 | — | 374,149 | (5,491 | ) | 373,856 | |||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||
Rental operations | — | — | 83,469 | — | 83,469 | — | — | 105,689 | — | 105,689 | ||||||||||||||||||||||||||||
General and administrative | 16,598 | — | 5,124 | (4,086 | ) | 17,636 | 26,453 | — | 5,472 | (5,491 | ) | 26,434 | ||||||||||||||||||||||||||
Interest | 23,958 | — | 7,073 | — | 31,031 | 40,877 | — | 2,002 | — | 42,879 | ||||||||||||||||||||||||||||
Depreciation and amortization | 1,787 | — | 106,001 | — | 107,788 | 1,752 | — | 132,685 | — | 134,437 | ||||||||||||||||||||||||||||
Total expenses | 42,343 | — | 201,667 | (4,086 | ) | 239,924 | 69,082 | — | 245,848 | (5,491 | ) | 309,439 | ||||||||||||||||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | 14,100 | — | 14,100 | — | — | 1,262 | — | 1,262 | ||||||||||||||||||||||||||||
Equity in earnings of affiliates | 92,886 | 88,900 | 1,702 | (183,488 | ) | — | 142,651 | 118,947 | 2,338 | (263,936 | ) | — | ||||||||||||||||||||||||||
Investment (loss) income | — | (29 | ) | 21,529 | — | 21,500 | ||||||||||||||||||||||||||||||||
Net income | 53,773 | 86,311 | 102,950 | (183,488 | ) | 59,546 | 78,767 | 118,918 | 153,430 | (263,936 | ) | 87,179 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | (5,773 | ) | — | (5,773 | ) | — | — | (8,412 | ) | — | (8,412 | ) | ||||||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 53,773 | 86,311 | 97,177 | (183,488 | ) | 53,773 | 78,767 | 118,918 | 145,018 | (263,936 | ) | 78,767 | ||||||||||||||||||||||||||
Dividends on preferred stock | (1,302 | ) | — | — | — | (1,302 | ) | (1,005 | ) | — | — | — | (1,005 | ) | ||||||||||||||||||||||||
Net income attributable to unvested restricted stock awards | (1,198 | ) | — | — | — | (1,198 | ) | (1,432 | ) | — | — | — | (1,432 | ) | ||||||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 51,273 | $ | 86,311 | $ | 97,177 | $ | (183,488 | ) | $ | 51,273 | $ | 76,330 | $ | 118,918 | $ | 145,018 | $ | (263,936 | ) | $ | 76,330 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Income from rentals | $ | — | $ | — | $ | 322,794 | $ | — | $ | 322,794 | |||||||||
Other income | 4,965 | — | 3,112 | (5,837 | ) | 2,240 | |||||||||||||
Total revenues | 4,965 | — | 325,906 | (5,837 | ) | 325,034 | |||||||||||||
Expenses: | |||||||||||||||||||
Rental operations | — | — | 91,908 | — | 91,908 | ||||||||||||||
General and administrative | 23,001 | — | 5,775 | (5,837 | ) | 22,939 | |||||||||||||
Interest | 32,139 | — | 5,958 | — | 38,097 | ||||||||||||||
Depreciation and amortization | 1,647 | — | 117,205 | — | 118,852 | ||||||||||||||
Impairment on real estate | — | — | 6,311 | — | 6,311 | ||||||||||||||
Total expenses | 56,787 | — | 227,157 | (5,837 | ) | 278,107 | |||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | 1,090 | — | 1,090 | ||||||||||||||
Equity in earnings of affiliates | 106,552 | 98,795 | 1,943 | (207,290 | ) | — | |||||||||||||
Investment (loss) income | — | (97 | ) | 12,627 | — | 12,530 | |||||||||||||
Net income | 54,730 | 98,698 | 114,409 | (207,290 | ) | 60,547 | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (5,817 | ) | — | (5,817 | ) | ||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 54,730 | 98,698 | 108,592 | (207,290 | ) | 54,730 | |||||||||||||
Dividends on preferred stock | (1,302 | ) | — | — | — | (1,302 | ) | ||||||||||||
Net income attributable to unvested restricted stock awards | (1,412 | ) | — | — | — | (1,412 | ) | ||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 52,016 | $ | 98,698 | $ | 108,592 | $ | (207,290 | ) | $ | 52,016 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Rental | $ | — | $ | — | $ | 166,591 | $ | — | $ | 166,591 | |||||||||
Tenant recoveries | — | — | 58,681 | — | 58,681 | ||||||||||||||
Other income | 1,077 | 91 | 7,852 | (3,913 | ) | 5,107 | |||||||||||||
Total revenues | 1,077 | 91 | 233,124 | (3,913 | ) | 230,379 | |||||||||||||
Expenses: | |||||||||||||||||||
Rental operations | — | — | 72,002 | — | 72,002 | ||||||||||||||
General and administrative | 15,568 | — | 4,199 | (3,913 | ) | 15,854 | |||||||||||||
Interest | 21,318 | — | 4,532 | — | 25,850 | ||||||||||||||
Depreciation and amortization | 1,722 | — | 75,411 | — | 77,133 | ||||||||||||||
Impairment of real estate | — | — | 8,114 | — | 8,114 | ||||||||||||||
Loss on early extinguishment of debt | 3,230 | — | — | — | 3,230 | ||||||||||||||
Total expenses | 41,838 | — | 164,258 | (3,913 | ) | 202,183 | |||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | 273 | — | 273 | ||||||||||||||
Equity in earnings of affiliates | 65,236 | 55,532 | 1,100 | (121,868 | ) | — | |||||||||||||
Gain on sale of real estate – land parcels | — | — | 90 | — | 90 | ||||||||||||||
Net income | 24,475 | 55,623 | 70,329 | (121,868 | ) | 28,559 | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (4,084 | ) | — | (4,084 | ) | ||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 24,475 | 55,623 | 66,245 | (121,868 | ) | 24,475 | |||||||||||||
Dividends on preferred stock | (5,007 | ) | — | — | — | (5,007 | ) | ||||||||||||
Preferred stock redemption charge | (13,095 | ) | — | — | — | (13,095 | ) | ||||||||||||
Net income attributable to unvested restricted stock awards | (921 | ) | — | — | — | (921 | ) | ||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 5,452 | $ | 55,623 | $ | 66,245 | $ | (121,868 | ) | $ | 5,452 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||||||||
Rental | $ | — | $ | — | $ | 635,156 | $ | — | $ | 635,156 | ||||||||||||||||||||||||||||
Tenant recoveries | — | — | 188,874 | — | 188,874 | |||||||||||||||||||||||||||||||||
Income from rentals | $ | — | $ | — | $ | 726,367 | $ | — | $ | 726,367 | ||||||||||||||||||||||||||||
Other income | 11,337 | (2,577 | ) | 10,199 | (13,683 | ) | 5,276 | 10,232 | — | 6,946 | (10,847 | ) | 6,331 | |||||||||||||||||||||||||
Total revenues | 11,337 | (2,577 | ) | 834,229 | (13,683 | ) | 829,306 | 10,232 | — | 733,313 | (10,847 | ) | 732,698 | |||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||
Rental operations | — | — | 237,536 | — | 237,536 | — | — | 207,190 | — | 207,190 | ||||||||||||||||||||||||||||
General and administrative | 55,272 | — | 14,510 | (13,683 | ) | 56,099 | 50,803 | — | 11,155 | (10,847 | ) | 51,111 | ||||||||||||||||||||||||||
Interest | 72,907 | — | 19,656 | — | 92,563 | 76,706 | — | 5,273 | — | 81,979 | ||||||||||||||||||||||||||||
Depreciation and amortization | 5,217 | — | 303,852 | — | 309,069 | 3,415 | — | 265,109 | — | 268,524 | ||||||||||||||||||||||||||||
Impairment of real estate | — | — | 203 | — | 203 | |||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 670 | — | — | — | 670 | — | — | 7,361 | — | 7,361 | ||||||||||||||||||||||||||||
Total expenses | 134,066 | — | 575,757 | (13,683 | ) | 696,140 | 130,924 | — | 496,088 | (10,847 | ) | 616,165 | ||||||||||||||||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | 15,050 | — | 15,050 | — | — | 2,408 | — | 2,408 | ||||||||||||||||||||||||||||
Equity in earnings of affiliates | 252,434 | 242,345 | 4,694 | (499,473 | ) | — | 328,618 | 219,918 | 4,323 | (552,859 | ) | — | ||||||||||||||||||||||||||
Gain on sales of real estate – rental properties | — | — | 270 | — | 270 | |||||||||||||||||||||||||||||||||
Gain on sales of real estate – land parcels | — | — | 111 | — | 111 | |||||||||||||||||||||||||||||||||
Investment income | — | 113 | 104,943 | — | 105,056 | |||||||||||||||||||||||||||||||||
Net income | 129,705 | 239,768 | 278,597 | (499,473 | ) | 148,597 | 207,926 | 220,031 | 348,899 | (552,859 | ) | 223,997 | ||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | — | — | (18,892 | ) | — | (18,892 | ) | — | — | (16,071 | ) | — | (16,071 | ) | ||||||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 129,705 | 239,768 | 259,705 | (499,473 | ) | 129,705 | 207,926 | 220,031 | 332,828 | (552,859 | ) | 207,926 | ||||||||||||||||||||||||||
Dividends on preferred stock | (6,364 | ) | — | — | — | (6,364 | ) | (2,031 | ) | — | — | — | (2,031 | ) | ||||||||||||||||||||||||
Preferred stock redemption charge | (11,279 | ) | — | — | — | (11,279 | ) | (2,580 | ) | — | — | — | (2,580 | ) | ||||||||||||||||||||||||
Net income attributable to unvested restricted stock awards | (3,498 | ) | — | — | — | (3,498 | ) | (3,134 | ) | — | — | — | (3,134 | ) | ||||||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 108,564 | $ | 239,768 | $ | 259,705 | $ | (499,473 | ) | $ | 108,564 | $ | 200,181 | $ | 220,031 | $ | 332,828 | $ | (552,859 | ) | $ | 200,181 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Income from rentals | $ | — | $ | — | $ | 640,449 | $ | — | $ | 640,449 | |||||||||
Other income | 9,089 | — | 6,037 | (10,402 | ) | 4,724 | |||||||||||||
Total revenues | 9,089 | — | 646,486 | (10,402 | ) | 645,173 | |||||||||||||
Expenses: | |||||||||||||||||||
Rental operations | — | — | 183,679 | — | 183,679 | ||||||||||||||
General and administrative | 44,891 | — | 10,871 | (10,402 | ) | 45,360 | |||||||||||||
Interest | 63,234 | — | 11,778 | — | 75,012 | ||||||||||||||
Depreciation and amortization | 3,324 | — | 229,747 | — | 233,071 | ||||||||||||||
Impairment of real estate | — | — | 6,311 | — | 6,311 | ||||||||||||||
Total expenses | 111,449 | — | 442,386 | (10,402 | ) | 543,433 | |||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | 2,234 | — | 2,234 | ||||||||||||||
Equity in earnings of affiliates | 292,720 | 197,677 | 3,897 | (494,294 | ) | — | |||||||||||||
Investment income | — | 376 | 97,715 | — | 98,091 | ||||||||||||||
Net income | 190,360 | 198,053 | 307,946 | (494,294 | ) | 202,065 | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (11,705 | ) | — | (11,705 | ) | ||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 190,360 | 198,053 | 296,241 | (494,294 | ) | 190,360 | |||||||||||||
Dividends on preferred stock | (2,604 | ) | — | — | — | (2,604 | ) | ||||||||||||
Net income attributable to unvested restricted stock awards | (2,765 | ) | — | — | — | (2,765 | ) | ||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 184,991 | $ | 198,053 | $ | 296,241 | $ | (494,294 | ) | $ | 184,991 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Rental | $ | — | $ | — | $ | 486,505 | $ | — | $ | 486,505 | |||||||||
Tenant recoveries | — | — | 165,385 | — | 165,385 | ||||||||||||||
Other income | 7,086 | 115 | 24,091 | (10,638 | ) | 20,654 | |||||||||||||
Total revenues | 7,086 | 115 | 675,981 | (10,638 | ) | 672,544 | |||||||||||||
Expenses: | |||||||||||||||||||
Rental operations | — | — | 205,164 | — | 205,164 | ||||||||||||||
General and administrative | 45,224 | — | 11,840 | (10,638 | ) | 46,426 | |||||||||||||
Interest | 60,729 | — | 15,001 | — | 75,730 | ||||||||||||||
Depreciation and amortization | 4,997 | — | 213,171 | — | 218,168 | ||||||||||||||
Impairment of real estate | — | — | 193,237 | — | 193,237 | ||||||||||||||
Loss of early extinguishment of debt | 3,230 | — | — | — | 3,230 | ||||||||||||||
Total expenses | 114,180 | — | 638,413 | (10,638 | ) | 741,955 | |||||||||||||
Equity in losses of unconsolidated real estate JVs | — | — | (270 | ) | — | (270 | ) | ||||||||||||
Equity in earnings (losses) of affiliates | 25,889 | (6,282 | ) | (98 | ) | (19,509 | ) | — | |||||||||||
Gain on sale of real estate – land parcels | — | — | 90 | — | 90 | ||||||||||||||
Net (loss) income | (81,205 | ) | (6,167 | ) | 37,290 | (19,509 | ) | (69,591 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (11,614 | ) | — | (11,614 | ) | ||||||||||||
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | (81,205 | ) | (6,167 | ) | 25,676 | (19,509 | ) | (81,205 | ) | ||||||||||
Dividends on preferred stock | (16,388 | ) | — | — | — | (16,388 | ) | ||||||||||||
Preferred stock redemption charge | (25,614 | ) | — | — | — | (25,614 | ) | ||||||||||||
Net income attributable to unvested restricted stock awards | (2,807 | ) | — | — | — | (2,807 | ) | ||||||||||||
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | (126,014 | ) | $ | (6,167 | ) | $ | 25,676 | $ | (19,509 | ) | $ | (126,014 | ) |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 53,773 | $ | 86,311 | $ | 102,950 | $ | (183,488 | ) | $ | 59,546 | ||||||||
Other comprehensive income | |||||||||||||||||||
Unrealized gains on available-for-sale equity securities: | |||||||||||||||||||
Unrealized holding gains arising during the period | — | 65 | 16,953 | — | 17,018 | ||||||||||||||
Reclassification adjustment for losses included in net income | — | — | — | — | — | ||||||||||||||
Unrealized gains on available-for-sale equity securities, net | — | 65 | 16,953 | — | 17,018 | ||||||||||||||
Unrealized gains (losses) on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge gains (losses) arising during the period | 174 | — | (29 | ) | — | 145 | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 195 | — | 3 | — | 198 | ||||||||||||||
Unrealized gains (losses) on interest rate hedge agreements, net | 369 | — | (26 | ) | — | 343 | |||||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation gains arising during the period | — | — | 3,836 | — | 3,836 | ||||||||||||||
Reclassification adjustment for cumulative foreign currency translation losses included in net income upon sale or liquidation | — | — | — | — | — | ||||||||||||||
Unrealized gains on foreign currency translation, net | — | — | 3,836 | — | 3,836 | ||||||||||||||
Total other comprehensive income | 369 | 65 | 20,763 | — | 21,197 | ||||||||||||||
Comprehensive income | 54,142 | 86,376 | 123,713 | (183,488 | ) | 80,743 | |||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (5,783 | ) | — | (5,783 | ) | ||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 54,142 | $ | 86,376 | $ | 117,930 | $ | (183,488 | ) | $ | 74,960 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 78,767 | $ | 118,918 | $ | 153,430 | $ | (263,936 | ) | $ | 87,179 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Unrealized losses on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge losses arising during the period | (1,126 | ) | — | — | — | (1,126 | ) | ||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 114 | — | — | — | 114 | ||||||||||||||
Unrealized losses on interest rate hedge agreements, net | (1,012 | ) | — | — | — | (1,012 | ) | ||||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation gains arising during the period | — | — | 590 | — | 590 | ||||||||||||||
Unrealized gains on foreign currency translation, net | — | — | 590 | — | 590 | ||||||||||||||
Total other comprehensive (loss) income | (1,012 | ) | — | 590 | — | (422 | ) | ||||||||||||
Comprehensive income | 77,755 | 118,918 | 154,020 | (263,936 | ) | 86,757 | |||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (8,412 | ) | — | (8,412 | ) | ||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | $ | 77,755 | $ | 118,918 | $ | 145,608 | $ | (263,936 | ) | $ | 78,345 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 54,730 | $ | 98,698 | $ | 114,409 | $ | (207,290 | ) | $ | 60,547 | ||||||||
Other comprehensive loss: | |||||||||||||||||||
Unrealized losses on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge gains arising during the period | 661 | — | — | — | 661 | ||||||||||||||
Reclassification adjustment for amortization of interest income included in net income | (1,131 | ) | — | — | — | (1,131 | ) | ||||||||||||
Unrealized losses on interest rate hedge agreements, net | (470 | ) | — | — | — | (470 | ) | ||||||||||||
Unrealized losses on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation losses arising during the period | — | — | (3,243 | ) | — | (3,243 | ) | ||||||||||||
Unrealized losses on foreign currency translation, net | — | — | (3,243 | ) | — | (3,243 | ) | ||||||||||||
Total other comprehensive loss | (470 | ) | — | (3,243 | ) | — | (3,713 | ) | |||||||||||
Comprehensive income | 54,260 | 98,698 | 111,166 | (207,290 | ) | 56,834 | |||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (5,817 | ) | — | (5,817 | ) | ||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | $ | 54,260 | $ | 98,698 | $ | 105,349 | $ | (207,290 | ) | $ | 51,017 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 24,475 | $ | 55,623 | $ | 70,329 | $ | (121,868 | ) | $ | 28,559 | ||||||||
Other comprehensive income (loss) | |||||||||||||||||||
Unrealized losses on available-for-sale equity securities: | |||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | 58 | (38,679 | ) | — | (38,621 | ) | ||||||||||||
Reclassification adjustment for gains included in net income | — | (159 | ) | (8,381 | ) | — | (8,540 | ) | |||||||||||
Unrealized losses on available-for-sale equity securities, net | — | (101 | ) | (47,060 | ) | — | (47,161 | ) | |||||||||||
Unrealized gains (losses) on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge gains arising during the period | 2,979 | — | 3 | — | 2,982 | ||||||||||||||
Reclassification adjustment for amortization of interest expense (income) included in net income | 1,714 | — | (12 | ) | — | 1,702 | |||||||||||||
Unrealized gains (losses) on interest rate hedge agreements, net | 4,693 | — | (9 | ) | — | 4,684 | |||||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation losses arising during the period | — | — | (1,322 | ) | — | (1,322 | ) | ||||||||||||
Reclassification adjustment for cumulative foreign currency translation losses included in net income upon sale or liquidation | — | — | 3,779 | — | 3,779 | ||||||||||||||
Unrealized gains on foreign currency translation, net | — | — | 2,457 | — | 2,457 | ||||||||||||||
Total other comprehensive income (loss) | 4,693 | (101 | ) | (44,612 | ) | — | (40,020 | ) | |||||||||||
Comprehensive income (loss) | 29,168 | 55,522 | 25,717 | (121,868 | ) | (11,461 | ) | ||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (4,081 | ) | — | (4,081 | ) | ||||||||||||
Comprehensive income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 29,168 | $ | 55,522 | $ | 21,636 | $ | (121,868 | ) | $ | (15,542 | ) |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 129,705 | $ | 239,768 | $ | 278,597 | $ | (499,473 | ) | $ | 148,597 | ||||||||
Other comprehensive income | |||||||||||||||||||
Unrealized gains on available-for-sale equity securities: | |||||||||||||||||||
Unrealized holding gains arising during the period | — | 20 | 23,394 | — | 23,414 | ||||||||||||||
Reclassification adjustment for losses included in net income | — | 4 | 2,478 | — | 2,482 | ||||||||||||||
Unrealized gains on available-for-sale equity securities, net | — | 24 | 25,872 | — | 25,896 | ||||||||||||||
Unrealized gains (losses) on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge gains (losses) arising during the period | 1,062 | — | (250 | ) | — | 812 | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 1,804 | — | 6 | — | 1,810 | ||||||||||||||
Unrealized gains (losses) on interest rate hedge agreements, net | 2,866 | — | (244 | ) | — | 2,622 | |||||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation gains arising during the period | — | — | 7,592 | — | 7,592 | ||||||||||||||
Reclassification adjustment for cumulative foreign currency translation losses included in net income upon sale or liquidation | — | — | 2,421 | — | 2,421 | ||||||||||||||
Unrealized gains on foreign currency translation, net | — | — | 10,013 | — | 10,013 | ||||||||||||||
Total other comprehensive income | 2,866 | 24 | 35,641 | — | 38,531 | ||||||||||||||
Comprehensive income | 132,571 | 239,792 | 314,238 | (499,473 | ) | 187,128 | |||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (18,914 | ) | — | (18,914 | ) | ||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 132,571 | $ | 239,792 | $ | 295,324 | $ | (499,473 | ) | $ | 168,214 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 207,926 | $ | 220,031 | $ | 348,899 | $ | (552,859 | ) | $ | 223,997 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Unrealized losses on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge losses arising during the period | (1,684 | ) | — | — | — | (1,684 | ) | ||||||||||||
Reclassification adjustment for amortization of interest income included in net income | (1,815 | ) | — | — | — | (1,815 | ) | ||||||||||||
Unrealized losses on interest rate hedge agreements, net | (3,499 | ) | — | — | — | (3,499 | ) | ||||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation gains arising during the period | — | — | 2,800 | — | 2,800 | ||||||||||||||
Unrealized gains on foreign currency translation, net | — | — | 2,800 | — | 2,800 | ||||||||||||||
Total other comprehensive (loss) income | (3,499 | ) | — | 2,800 | — | (699 | ) | ||||||||||||
Comprehensive income | 204,427 | 220,031 | 351,699 | (552,859 | ) | 223,298 | |||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (16,071 | ) | — | (16,071 | ) | ||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | $ | 204,427 | $ | 220,031 | $ | 335,628 | $ | (552,859 | ) | $ | 207,227 |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 190,360 | $ | 198,053 | $ | 307,946 | $ | (494,294 | ) | $ | 202,065 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Unrealized gains on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge gains arising during the period | 2,643 | — | — | — | 2,643 | ||||||||||||||
Reclassification adjustment for amortization of interest income included in net income | (1,809 | ) | — | — | — | (1,809 | ) | ||||||||||||
Unrealized gains on interest rate hedge agreements, net | 834 | — | — | — | 834 | ||||||||||||||
Unrealized losses on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation losses arising during the period | — | — | (3,572 | ) | — | (3,572 | ) | ||||||||||||
Unrealized losses on foreign currency translation, net | — | — | (3,572 | ) | — | (3,572 | ) | ||||||||||||
Total other comprehensive income (loss) | 834 | — | (3,572 | ) | — | (2,738 | ) | ||||||||||||
Comprehensive income | 191,194 | 198,053 | 304,374 | (494,294 | ) | 199,327 | |||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (11,705 | ) | — | (11,705 | ) | ||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | $ | 191,194 | $ | 198,053 | $ | 292,669 | $ | (494,294 | ) | $ | 187,622 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net (loss) income | $ | (81,205 | ) | $ | (6,167 | ) | $ | 37,290 | $ | (19,509 | ) | $ | (69,591 | ) | |||||
Other comprehensive loss | |||||||||||||||||||
Unrealized losses on available-for-sale equity securities: | |||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | 136 | (70,191 | ) | — | (70,055 | ) | ||||||||||||
Reclassification adjustment for losses (gains) included in net income | — | (148 | ) | (18,479 | ) | — | (18,627 | ) | |||||||||||
Unrealized losses on available-for-sale equity securities, net | — | (12 | ) | (88,670 | ) | — | (88,682 | ) | |||||||||||
Unrealized losses on interest rate hedge agreements: | |||||||||||||||||||
Unrealized interest rate hedge (losses) gains arising during the period | (7,658 | ) | — | 3 | — | (7,655 | ) | ||||||||||||
Reclassification adjustment for amortization of interest expense (income) included in net income | 3,737 | — | (12 | ) | — | 3,725 | |||||||||||||
Unrealized losses on interest rate hedge agreements, net | (3,921 | ) | — | (9 | ) | — | (3,930 | ) | |||||||||||
Unrealized gains on foreign currency translation: | |||||||||||||||||||
Unrealized foreign currency translation gains arising during the period | — | — | 842 | — | 842 | ||||||||||||||
Reclassification adjustment for cumulative foreign currency translation losses included in net (loss) income upon sale or liquidation | — | — | 10,807 | — | 10,807 | ||||||||||||||
Unrealized gains on foreign currency translation, net | — | — | 11,649 | — | 11,649 | ||||||||||||||
Total other comprehensive loss | (3,921 | ) | (12 | ) | (77,030 | ) | — | (80,963 | ) | ||||||||||
Comprehensive loss | (85,126 | ) | (6,179 | ) | (39,740 | ) | (19,509 | ) | (150,554 | ) | |||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (11,587 | ) | — | (11,587 | ) | ||||||||||||
Comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | (85,126 | ) | $ | (6,179 | ) | $ | (51,327 | ) | $ | (19,509 | ) | $ | (162,141 | ) |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 129,705 | $ | 239,768 | $ | 278,597 | $ | (499,473 | ) | $ | 148,597 | $ | 207,926 | $ | 220,031 | $ | 348,899 | $ | (552,859 | ) | $ | 223,997 | ||||||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5,217 | — | 303,852 | — | 309,069 | 3,415 | — | 265,109 | — | 268,524 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 670 | — | — | — | 670 | — | — | 7,361 | — | 7,361 | ||||||||||||||||||||||||||||
Gain on sales of real estate – rental properties | — | — | (270 | ) | — | (270 | ) | |||||||||||||||||||||||||||||||
Impairment of real estate | — | — | 203 | — | 203 | |||||||||||||||||||||||||||||||||
Gain on sales of real estate – land parcels | — | — | (111 | ) | — | (111 | ) | |||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | (15,050 | ) | — | (15,050 | ) | — | — | (2,408 | ) | — | (2,408 | ) | ||||||||||||||||||||||||
Distributions of earnings from unconsolidated real estate JVs | — | — | 249 | — | 249 | — | — | 1,679 | — | 1,679 | ||||||||||||||||||||||||||||
Amortization of loan fees | 5,665 | — | 2,913 | — | 8,578 | 4,412 | — | 201 | — | 4,613 | ||||||||||||||||||||||||||||
Amortization of debt discounts (premiums) | 441 | — | (2,314 | ) | — | (1,873 | ) | |||||||||||||||||||||||||||||||
Amortization of debt premiums | (17 | ) | — | (1,566 | ) | — | (1,583 | ) | ||||||||||||||||||||||||||||||
Amortization of acquired below-market leases | — | — | (14,908 | ) | — | (14,908 | ) | — | — | (15,202 | ) | — | (15,202 | ) | ||||||||||||||||||||||||
Deferred rent | — | — | (74,362 | ) | — | (74,362 | ) | — | — | (52,441 | ) | — | (52,441 | ) | ||||||||||||||||||||||||
Stock compensation expense | 18,649 | — | — | — | 18,649 | 22,466 | — | — | — | 22,466 | ||||||||||||||||||||||||||||
Equity in earnings of affiliates | (252,434 | ) | (242,345 | ) | (4,694 | ) | 499,473 | — | (328,618 | ) | (219,918 | ) | (4,323 | ) | 552,859 | — | ||||||||||||||||||||||
Investment gains | — | (17 | ) | (8,408 | ) | — | (8,425 | ) | ||||||||||||||||||||||||||||||
Investment losses | — | 2,599 | 3,819 | — | 6,418 | |||||||||||||||||||||||||||||||||
Investment income | — | (113 | ) | (104,943 | ) | — | (105,056 | ) | ||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Restricted cash | (36 | ) | — | (876 | ) | — | (912 | ) | ||||||||||||||||||||||||||||||
Tenant receivables | — | — | (224 | ) | — | (224 | ) | — | — | 573 | — | 573 | ||||||||||||||||||||||||||
Deferred leasing costs | — | — | (39,925 | ) | — | (39,925 | ) | — | — | (23,471 | ) | — | (23,471 | ) | ||||||||||||||||||||||||
Other assets | (10,576 | ) | — | (86 | ) | — | (10,662 | ) | (462 | ) | — | 1,022 | — | 560 | ||||||||||||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | (9,813 | ) | (9 | ) | 40,441 | — | 30,619 | 1,239 | — | (22,511 | ) | — | (21,272 | ) | ||||||||||||||||||||||||
Net cash (used in) provided by operating activities | (112,512 | ) | (4 | ) | 468,846 | — | 356,330 | (89,639 | ) | — | 397,979 | — | 308,340 | |||||||||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||||||||||||||||
Proceeds from sales of real estate | — | — | 4,263 | — | 4,263 | |||||||||||||||||||||||||||||||||
Additions to real estate | — | — | (660,877 | ) | — | (660,877 | ) | — | — | (577,322 | ) | — | (577,322 | ) | ||||||||||||||||||||||||
Purchases of real estate | — | — | (590,884 | ) | — | (590,884 | ) | — | — | (715,030 | ) | — | (715,030 | ) | ||||||||||||||||||||||||
Deposits for investing activities | — | — | 4,700 | — | 4,700 | |||||||||||||||||||||||||||||||||
Returns of deposits for investing activities | — | — | (9,000 | ) | — | (9,000 | ) | |||||||||||||||||||||||||||||||
Investments in subsidiaries | (753,137 | ) | (588,808 | ) | (12,160 | ) | 1,354,105 | — | (1,155,762 | ) | (1,091,328 | ) | (22,402 | ) | 2,269,492 | — | ||||||||||||||||||||||
Investments in unconsolidated real estate JVs | — | — | (248 | ) | — | (248 | ) | — | — | (95,950 | ) | — | (95,950 | ) | ||||||||||||||||||||||||
Return of capital from unconsolidated real estate JVs | — | — | 38,576 | — | 38,576 | |||||||||||||||||||||||||||||||||
Additions to investments | — | — | (128,190 | ) | — | (128,190 | ) | — | — | (104,902 | ) | — | (104,902 | ) | ||||||||||||||||||||||||
Sales of investments | — | 204 | 18,692 | — | 18,896 | — | 172 | 49,795 | — | 49,967 | ||||||||||||||||||||||||||||
Net cash used in investing activities | $ | (753,137 | ) | $ | (588,604 | ) | $ | (1,326,128 | ) | $ | 1,354,105 | $ | (1,313,764 | ) | $ | (1,155,762 | ) | $ | (1,091,156 | ) | $ | (1,474,811 | ) | $ | 2,269,492 | $ | (1,452,237 | ) |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Financing Activities | |||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 145,272 | $ | — | $ | 145,272 | |||||||||
Repayments of borrowings from secured notes payable | — | — | (2,882 | ) | — | (2,882 | ) | ||||||||||||
Proceeds from issuance of unsecured senior notes payable | 424,384 | — | — | — | 424,384 | ||||||||||||||
Borrowings from unsecured senior line of credit | 2,634,000 | — | — | — | 2,634,000 | ||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (2,348,000 | ) | — | — | — | (2,348,000 | ) | ||||||||||||
Repayments of borrowings from unsecured senior bank term loans | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||||
Transfer to/from parent company | 47,558 | 588,608 | 717,939 | (1,354,105 | ) | — | |||||||||||||
Change in restricted cash related to financing activities | — | — | (10,467 | ) | — | (10,467 | ) | ||||||||||||
Payment of loan fees | (3,956 | ) | — | (387 | ) | — | (4,343 | ) | |||||||||||
Repurchase of 7.00% Series D cumulative convertible preferred stock | (17,934 | ) | — | — | — | (17,934 | ) | ||||||||||||
Redemption of 6.45% Series E cumulative redeemable preferred stock | (130,350 | ) | — | — | — | (130,350 | ) | ||||||||||||
Proceeds from the issuance of common stock | 705,391 | — | — | — | 705,391 | ||||||||||||||
Dividends on common stock | (229,814 | ) | — | — | — | (229,814 | ) | ||||||||||||
Dividends on preferred stock | (8,317 | ) | — | — | — | (8,317 | ) | ||||||||||||
Contributions from noncontrolling interests | — | — | 9,877 | — | 9,877 | ||||||||||||||
Distributions to noncontrolling interests | — | — | (17,432 | ) | — | (17,432 | ) | ||||||||||||
Net cash provided by financing activities | 872,962 | 588,608 | 841,920 | (1,354,105 | ) | 949,385 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 1,579 | — | 1,579 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 7,313 | — | (13,783 | ) | — | (6,470 | ) | ||||||||||||
Cash and cash equivalents as of the beginning of period | 30,603 | — | 94,429 | — | 125,032 | ||||||||||||||
Cash and cash equivalents as of the end of period | $ | 37,916 | $ | — | $ | 80,646 | $ | — | $ | 118,562 | |||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 67,091 | $ | — | $ | 19,141 | $ | — | $ | 86,232 | |||||||||
Non-Cash Investing Activities: | |||||||||||||||||||
Change in accrued construction | $ | — | $ | — | $ | (38,767 | ) | $ | — | $ | (38,767 | ) | |||||||
Contribution of real estate to an unconsolidated real estate JV | $ | — | $ | — | $ | 6,998 | $ | — | $ | 6,998 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Financing Activities | |||||||||||||||||||
Repayments of borrowings from secured notes payable | $ | — | $ | — | $ | (302,878 | ) | $ | — | $ | (302,878 | ) | |||||||
Proceeds from issuance of unsecured senior notes payable | 854,209 | — | — | — | 854,209 | ||||||||||||||
Borrowings from unsecured senior line of credit | 2,114,000 | — | — | — | 2,114,000 | ||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (1,808,000 | ) | — | — | — | (1,808,000 | ) | ||||||||||||
Transfers to/from parent company | 213,388 | 1,091,156 | 964,948 | (2,269,492 | ) | — | |||||||||||||
Payment of loan fees | (8,714 | ) | — | (7,082 | ) | — | (15,796 | ) | |||||||||||
Taxes paid related to net settlement of equity awards | (4,086 | ) | — | — | — | (4,086 | ) | ||||||||||||
Repurchase of 7.00% Series D cumulative convertible preferred stock | (9,240 | ) | — | — | — | (9,240 | ) | ||||||||||||
Proceeds from issuance of common stock | 85,394 | — | — | — | 85,394 | ||||||||||||||
Dividends on common stock | (218,914 | ) | — | — | — | (218,914 | ) | ||||||||||||
Dividends on preferred stock | (2,132 | ) | — | — | — | (2,132 | ) | ||||||||||||
Contributions from and sales of noncontrolling interests | — | — | 441,251 | — | 441,251 | ||||||||||||||
Distributions to and purchases of noncontrolling interests | — | — | (24,590 | ) | — | (24,590 | ) | ||||||||||||
Net cash provided by financing activities | 1,215,905 | 1,091,156 | 1,071,649 | (2,269,492 | ) | 1,109,218 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 774 | — | 774 | ||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | (29,496 | ) | — | (4,409 | ) | — | (33,905 | ) | |||||||||||
Cash, cash equivalents, and restricted cash as of the beginning of period | 119,305 | — | 152,825 | — | 272,130 | ||||||||||||||
Cash, cash equivalents, and restricted cash as of the end of period | $ | 89,809 | $ | — | $ | 148,416 | $ | — | $ | 238,225 | |||||||||
Supplemental Disclosures and Non-Cash Investing and Financing Activities: | |||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 63,970 | $ | — | $ | 7,368 | $ | — | $ | 71,338 | |||||||||
Change in accrued construction | $ | — | $ | — | $ | 5,558 | $ | — | $ | 5,558 | |||||||||
Accrued construction for current-period additions to real estate | $ | — | $ | — | $ | 181,922 | $ | — | $ | 181,922 | |||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (28,200 | ) | $ | — | $ | (28,200 | ) | |||||||
Right-of-use asset | $ | — | $ | — | $ | 239,653 | $ | — | $ | 239,653 | |||||||||
Lease liability | $ | — | $ | — | $ | (245,638 | ) | $ | — | $ | (245,638 | ) |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (81,205 | ) | $ | (6,167 | ) | $ | 37,290 | $ | (19,509 | ) | $ | (69,591 | ) | ||||||||||||||||||||||||
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||||||||||||||||||||||||||||||||||||||
Net income | $ | 190,360 | $ | 198,053 | $ | 307,946 | $ | (494,294 | ) | $ | 202,065 | |||||||||||||||||||||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 4,997 | — | 213,171 | — | 218,168 | 3,324 | — | 229,747 | — | 233,071 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 3,230 | — | — | — | 3,230 | |||||||||||||||||||||||||||||||||
Impairment of real estate | — | — | 193,237 | — | 193,237 | — | — | 6,311 | — | 6,311 | ||||||||||||||||||||||||||||
Gain on sale of real estate – land parcels | — | — | (90 | ) | — | (90 | ) | |||||||||||||||||||||||||||||||
Equity in losses of unconsolidated real estate JVs | — | — | 270 | — | 270 | |||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated real estate JVs | — | — | (2,234 | ) | — | (2,234 | ) | |||||||||||||||||||||||||||||||
Distributions of earnings from unconsolidated real estate JVs | — | — | 286 | — | 286 | — | — | 287 | — | 287 | ||||||||||||||||||||||||||||
Amortization of loan fees | 5,826 | — | 2,966 | — | 8,792 | 4,260 | — | 876 | — | 5,136 | ||||||||||||||||||||||||||||
Amortization of debt discounts (premiums) | 353 | — | (470 | ) | — | (117 | ) | 378 | — | (1,559 | ) | — | (1,181 | ) | ||||||||||||||||||||||||
Amortization of acquired below-market leases | — | — | (2,905 | ) | — | (2,905 | ) | — | — | (11,368 | ) | — | (11,368 | ) | ||||||||||||||||||||||||
Deferred rent | — | — | (30,679 | ) | — | (30,679 | ) | — | — | (55,890 | ) | — | (55,890 | ) | ||||||||||||||||||||||||
Stock compensation expense | 19,007 | — | — | — | 19,007 | 15,223 | — | — | — | 15,223 | ||||||||||||||||||||||||||||
Equity in earnings of affiliates | (25,889 | ) | 6,282 | 98 | 19,509 | — | (292,720 | ) | (197,677 | ) | (3,897 | ) | 494,294 | — | ||||||||||||||||||||||||
Investment gains | — | (566 | ) | (28,155 | ) | — | (28,721 | ) | ||||||||||||||||||||||||||||||
Investment losses | — | 188 | 10,482 | — | 10,670 | |||||||||||||||||||||||||||||||||
Investment income | 43 | (375 | ) | (97,759 | ) | — | (98,091 | ) | ||||||||||||||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||||||||||||||||||||
Restricted cash | (16 | ) | — | (262 | ) | — | (278 | ) | ||||||||||||||||||||||||||||||
Tenant receivables | — | — | 843 | — | 843 | — | — | 1,552 | — | 1,552 | ||||||||||||||||||||||||||||
Deferred leasing costs | — | — | (21,621 | ) | — | (21,621 | ) | — | — | (29,705 | ) | — | (29,705 | ) | ||||||||||||||||||||||||
Other assets | (8,332 | ) | — | (6,481 | ) | — | (14,813 | ) | (10,894 | ) | — | (4,161 | ) | — | (15,055 | ) | ||||||||||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | (35,351 | ) | (592 | ) | 42,106 | — | 6,163 | (726 | ) | (2 | ) | 8,848 | — | 8,120 | ||||||||||||||||||||||||
Net cash (used in) provided by operating activities | (117,380 | ) | (855 | ) | 410,086 | — | 291,851 | (90,752 | ) | (1 | ) | 348,994 | — | 258,241 | ||||||||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||||||||||||||||
Proceeds from sales of real estate | — | — | 27,332 | — | 27,332 | |||||||||||||||||||||||||||||||||
Additions to real estate | — | — | (638,568 | ) | — | (638,568 | ) | — | — | (431,225 | ) | — | (431,225 | ) | ||||||||||||||||||||||||
Purchase of real estate | — | — | (18,108 | ) | — | (18,108 | ) | |||||||||||||||||||||||||||||||
Purchases of real estate | — | — | (688,698 | ) | — | (688,698 | ) | |||||||||||||||||||||||||||||||
Deposits for investing activities | — | — | (54,998 | ) | — | (54,998 | ) | — | — | 5,500 | — | 5,500 | ||||||||||||||||||||||||||
Investments in subsidiaries | (301,852 | ) | (365,132 | ) | (7,405 | ) | 674,389 | — | (1,010,580 | ) | (838,102 | ) | (17,282 | ) | 1,865,964 | — | ||||||||||||||||||||||
Acquisitions of interests in unconsolidated real estate JVs | — | — | (35,922 | ) | — | (35,922 | ) | |||||||||||||||||||||||||||||||
Investments in unconsolidated real estate JVs | — | — | (6,924 | ) | — | (6,924 | ) | — | — | (44,486 | ) | — | (44,486 | ) | ||||||||||||||||||||||||
Additions to investments | — | — | (68,384 | ) | — | (68,384 | ) | — | — | (118,775 | ) | — | (118,775 | ) | ||||||||||||||||||||||||
Sales of investments | — | 1,174 | 34,121 | — | 35,295 | — | 377 | 44,330 | — | 44,707 | ||||||||||||||||||||||||||||
Repayment of notes receivable | — | — | 9,054 | — | 9,054 | |||||||||||||||||||||||||||||||||
Net cash used in investing activities | $ | (301,852 | ) | $ | (363,958 | ) | $ | (723,880 | ) | $ | 674,389 | $ | (715,301 | ) | $ | (1,010,580 | ) | $ | (837,725 | ) | $ | (1,286,558 | ) | $ | 1,865,964 | $ | (1,268,899 | ) |
Condensed consolidating financial information (continued) |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Financing Activities | |||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 9,044 | $ | — | $ | 9,044 | |||||||||
Repayments of borrowings from secured notes payable | — | — | (3,162 | ) | — | (3,162 | ) | ||||||||||||
Proceeds from issuance of unsecured senior notes payable | 899,321 | — | — | — | 899,321 | ||||||||||||||
Borrowings from unsecured senior line of credit | 2,469,000 | — | — | — | 2,469,000 | ||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (2,519,000 | ) | — | — | — | (2,519,000 | ) | ||||||||||||
Transfers to/from parent company | 96,432 | 837,717 | 931,815 | (1,865,964 | ) | — | |||||||||||||
Payment of loan fees | (8,003 | ) | — | — | — | (8,003 | ) | ||||||||||||
Proceeds from issuance of common stock | 400,207 | — | — | — | 400,207 | ||||||||||||||
Dividends on common stock | (183,040 | ) | — | — | — | (183,040 | ) | ||||||||||||
Dividends on preferred stock | (2,604 | ) | — | — | — | (2,604 | ) | ||||||||||||
Contributions from noncontrolling interests | — | — | 14,564 | — | 14,564 | ||||||||||||||
Distributions to noncontrolling interests | — | — | (19,841 | ) | — | (19,841 | ) | ||||||||||||
Net cash provided by financing activities | 1,152,313 | 837,717 | 932,420 | (1,865,964 | ) | 1,056,486 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (1,173 | ) | — | (1,173 | ) | ||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 50,981 | (9 | ) | (6,317 | ) | — | 44,655 | ||||||||||||
Cash, cash equivalents, and restricted cash as of the beginning of period | 130,516 | 9 | 146,661 | — | 277,186 | ||||||||||||||
Cash, cash equivalents, and restricted cash as of the end of period | $ | 181,497 | $ | — | $ | 140,344 | $ | — | $ | 321,841 | |||||||||
Supplemental Disclosures and Non-Cash Investing and Financing Activities: | |||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 56,392 | $ | — | $ | 12,493 | $ | — | $ | 68,885 | |||||||||
Change in accrued construction | $ | — | $ | — | $ | 48,074 | $ | — | $ | 48,074 | |||||||||
Accrued construction for current-period additions to real estate | $ | — | $ | — | $ | 183,573 | $ | — | $ | 183,573 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Financing Activities | |||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 215,330 | $ | — | $ | 215,330 | |||||||||
Repayments of borrowings from secured notes payable | — | — | (234,096 | ) | — | (234,096 | ) | ||||||||||||
Proceeds from issuance of unsecured senior notes payable | 348,604 | — | — | — | 348,604 | ||||||||||||||
Borrowings from unsecured senior line of credit | 2,349,000 | — | — | — | 2,349,000 | ||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (2,084,000 | ) | — | — | — | (2,084,000 | ) | ||||||||||||
Repayment of borrowings from unsecured bank term loans | (200,000 | ) | — | — | — | (200,000 | ) | ||||||||||||
Transfer to/from parent company | (69,139 | ) | 364,813 | 378,715 | (674,389 | ) | — | ||||||||||||
Change in restricted cash related to financing activities | — | — | 7,742 | — | 7,742 | ||||||||||||||
Payment of loan fees | (12,401 | ) | — | (4,098 | ) | — | (16,499 | ) | |||||||||||
Repurchase of 7.00% Series D cumulative convertible preferred stock | (98,633 | ) | — | — | — | (98,633 | ) | ||||||||||||
Proceeds from the issuance of common stock | 367,802 | — | — | — | 367,802 | ||||||||||||||
Dividends on common stock | (177,966 | ) | — | — | — | (177,966 | ) | ||||||||||||
Dividends on preferred stock | (17,487 | ) | — | — | — | (17,487 | ) | ||||||||||||
Financing costs paid for sale of noncontrolling interests | — | — | (8,093 | ) | — | (8,093 | ) | ||||||||||||
Contributions from and sale of noncontrolling interests | — | — | 68,621 | — | 68,621 | ||||||||||||||
Distributions to and purchase of noncontrolling interests | — | — | (62,605 | ) | — | (62,605 | ) | ||||||||||||
Net cash provided by financing activities | 405,780 | 364,813 | 361,516 | (674,389 | ) | 457,720 | |||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (1,440 | ) | — | (1,440 | ) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (13,452 | ) | — | 46,282 | — | 32,830 | |||||||||||||
Cash and cash equivalents as of the beginning of period | 31,982 | — | 93,116 | — | 125,098 | ||||||||||||||
Cash and cash equivalents as of the end of period | $ | 18,530 | $ | — | $ | 139,398 | $ | — | $ | 157,928 | |||||||||
Supplemental Disclosure of Cash Flow Information: | |||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 58,062 | $ | — | $ | 758 | $ | — | $ | 58,820 | |||||||||
Non-Cash Investing Activities: | |||||||||||||||||||
Change in accrued construction | $ | — | $ | — | $ | 23,023 | $ | — | $ | 23,023 | |||||||||
Non-Cash Financing Activities: | |||||||||||||||||||
Redemption of redeemable noncontrolling interests | $ | — | $ | — | $ | (5,000 | ) | $ | — | $ | (5,000 | ) |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||
Total leasing activity – RSF | 786,925 | 3,189,483 | ||||
Lease renewals and re-leasing of space: | ||||||
Rental rate increases | 24.2% | 25.2% | ||||
Rental rate increases (cash basis) | 10.0% | 13.3% | ||||
RSF (included in total leasing activity above) | 448,472 | 1,931,477 |
Delivery Date | RSF | Percentage Leased | Incremental Annual Net Operating Income | ||||||
YTD 3Q17 | 663,672 | 100% | $51 million | ||||||
4Q17 | 651,738 | 95% | $38 million to $42 million | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Change | 2017 | 2016 | Change | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Alexandria’s common stockholders – diluted: | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Alexandria’s common stockholders – diluted: | Net income attributable to Alexandria’s common stockholders – diluted: | |||||||||||||||||||||||||||||||||||||||||||
In millions | $ | 51.3 | $ | 5.5 | $ | 45.8 | N/A | $ | 108.6 | $ | (126.0 | ) | $ | 234.6 | N/A | $ | 76.3 | $ | 52.0 | $ | 200.2 | $ | 185.0 | |||||||||||||||||||||
Per share | $ | 0.55 | $ | 0.07 | $ | 0.48 | N/A | $ | 1.20 | $ | (1.69 | ) | $ | 2.89 | N/A | $ | 0.68 | $ | 0.51 | $ | 1.80 | $ | 1.83 | Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted: | ||||||||||||||||||||
In millions | $ | 140.8 | $ | 107.6 | $ | 33.1 | 30.8 | % | $ | 407.5 | $ | 305.8 | $ | 101.7 | 33.3 | % | $ | 192.7 | $ | 167.9 | $ | 382.5 | $ | 330.4 | ||||||||||||||||||||
Per share | $ | 1.51 | $ | 1.39 | $ | 0.12 | 8.6 | % | $ | 4.49 | $ | 4.09 | $ | 0.40 | 9.8 | % | $ | 1.73 | $ | 1.64 | $ | 3.44 | $ | 3.27 |
As of | |||||
September 30, 2017 | |||||
Total market capitalization | $ | 16.1 | billion | ||
Liquidity | $ | 1.7 | billion | ||
Net debt to Adjusted EBITDA: | |||||
Quarter annualized | 6.1x | ||||
Trailing 12 months | 6.4x | ||||
Fixed-charge coverage ratio: | |||||
Quarter annualized | 4.1x | ||||
Trailing 12 months | 4.0x | ||||
Unhedged variable-rate debt as a percentage of total debt | 12% | ||||
Current and future value-creation pipeline as a percentage of gross investments in real estate in North America | 12% |
• |
June 30, 2019 | |||||||
Three Months Ended | Six Months Ended | ||||||
Total leasing activity – RSF | 819,949 | 2,068,921 | |||||
Lease renewals and re-leasing of space: | |||||||
RSF (included in total leasing activity above) | 587,930 | 1,097,345 | |||||
Rental rate increases | 32.5% | 32.6% | |||||
Rental rate increases (cash basis) | 17.8% | 20.1% |
Percentage of | |||||
Investment-grade or publicly traded large cap tenants | 53 | % | |||
Class A properties in AAA locations | 77 | % | |||
Occupancy of | 97.4 | % | |||
Operating margin | 72 | % | |||
Adjusted EBITDA margin | 69 | % | |||
Weighted-average remaining lease term: | |||||
All tenants | 8.4 | years | |||
Top 20 tenants | 12.0 | years | |||
As of June 30, 2019 | Goal for Fourth Quarter of 2019, Annualized | |||||
Quarter Annualized | Trailing 12 Months | |||||
Net debt to Adjusted EBITDA | 5.8x | 6.1x | Less than or equal to 5.3x | |||
Fixed-charge coverage ratio | 4.2x | 4.2x | Greater than 4.0x | |||
Percentage Leased/Negotiating | Quarter Annualized | |||||
As of June 30, 2019 | Goal for Fourth Quarter of 2019 | |||||
Value-creation pipeline as a percentage of gross investments in real estate: | ||||||
New Class A development and redevelopment projects: | ||||||
Undergoing construction with initial occupancy targeted for 2019 and 2020 and our pre-leased pre-construction project at 88 Bluxome Street | 74% | 5% | Less than 15% | |||
Undergoing pre-construction, marketing, and future value-creation projects | N/A | 6% |
In April 2019, we announced the launch of a new strategic agricultural technology (agtech) business initiative and the opening of Phase I of the Alexandria Center® for AgTech – Research Triangle, the first and only fully integrated, amenity-rich, multi-tenant agtech R&D and greenhouse campus, in the heart of Research Triangle, the most important, dense, and diverse agtech cluster in the U.S. The campus opened with a 97% leased, 175,000 RSF |
In June 2019, we announced our partnership with Columbia University to open our second Alexandria LaunchLabs® in New York City in the spring of |
(i) | Refinancing of an aggregate $950.0 million of unsecured senior notes payable comprising $400.0 million of 2.75% unsecured senior notes payable due 2020 and $550.0 million of 4.60% unsecured senior notes payable due 2022, pursuant to a cash tender offer completed on July 17, 2019, and subsequent call for redemption. The redemption is expected to settle on August 16, 2019. |
(ii) | Partial repayment of $175.0 million on our unsecured senior bank term loan. The remaining outstanding balance of the |
Favorable Lease Structure(1) | Same Property Net Operating Income Growth | |||||||||
![]() | ![]() | |||||||||
Stable cash flows | ||||||||||
Percentage of triple net leases | 97% | |||||||||
Increasing cash flows | ||||||||||
Percentage of leases containing annual rent escalations | 95% | |||||||||
Lower capex burden | ||||||||||
Percentage of leases providing for the recapture of capital expenditures | 94% | |||||||||
Margins(2) | Rental Rate Growth: Renewed/Re-Leased Space | |||||||||
![]() | ![]() | |||||||||
Adjusted EBITDA | Operating | |||||||||
68% | 71% | |||||||||
Same Property Net Operating Income Growth | Favorable Lease Structure(1) | ||||||||
![]() | ![]() | Strategic Lease Structure by Owner and Operator of Collaborative Life Science, Technology, and AgTech Campuses | |||||||
Stable cash flows | |||||||||
Percentage of triple net leases | 97% | ||||||||
Increasing cash flows | |||||||||
Percentage of leases containing annual rent escalations | 95% | ||||||||
Lower capex burden | |||||||||
Percentage of leases providing for the recapture of capital expenditures | 96% | ||||||||
Rental Rate Growth: Renewed/Re-Leased Space | Margins(2) | ||||||||
![]() | ![]() | ||||||||
Operating | Adjusted EBITDA | ||||||||
72% | 69% | ||||||||
(1) | Percentages calculated based on RSF as of |
(2) | Represents percentages for the three months ended |
Long-Duration Cash Flows Innovative Tenants | ||||
Publicly Traded Large Cap Tenants | Long-Duration Lease Terms | |||
53% | 8.4 Years | |||
of ARE’s | Weighted-Average | |||
Annual Rental Revenue(1) | Remaining Term | |||
Tenant Mix | ||||
![]() ![]() | ||||
Percentage of ARE’s Annual Rental Revenue(1) |
(1) | Represents annual rental revenue in effect as of |
(2) | 73% of our annual rental revenue for technology tenants is from investment-grade or publicly traded large cap tenants. |
High-Quality Cash Flows | |
Class A Properties in AAA Locations | AAA Locations |
![]() ![]() | |
of ARE’s Annual Rental Revenue(1) | |
Percentage of ARE’s Annual Rental Revenue(1) | |
Solid Demand for Class A Properties in AAA Locations Drives Solid Occupancy | |
Solid Historical Occupancy(2) | Occupancy |
![]() ![]() | |
Over 10 Years | |
(1) | Represents annual rental revenue in effect as of |
(2) | Average occupancy of operating properties in North America as of each December 31 for the last 10 years and as of |
Three Months Ended | Nine Months Ended | Year Ended | Three Months Ended | Six Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | September 30, 2017 | December 31, 2016 | June 30, 2019 | June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | Including Straight-Line Rent | Cash Basis | ||||||||||||||||||||||||||||||||||||||||
(Dollars per RSF) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Leasing activity: | |||||||||||||||||||||||||||||||||||||||||||||||||||
Renewed/re-leased space (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Rental rate changes | 24.2% | 10.0% | 25.2% | 13.3% | 27.6% | 12.0% | 32.5% | 17.8% | 32.6% | 20.1% | 24.1% | 14.1% | |||||||||||||||||||||||||||||||||||||||
New rates | $ | 59.84 | $ | 57.59 | $ | 51.30 | $ | 48.24 | $ | 48.60 | $ | 45.83 | $64.48 | $62.11 | $54.91 | $52.40 | $55.05 | $52.79 | |||||||||||||||||||||||||||||||||
Expiring rates | $ | 48.19 | $ | 52.37 | $ | 40.97 | $ | 42.56 | $ | 38.09 | $ | 40.92 | $48.67 | $52.71 | $41.40 | $43.63 | $44.35 | $46.25 | |||||||||||||||||||||||||||||||||
Rentable square footage | 448,472 | 1,931,477 | 2,129,608 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tenant improvements/leasing commissions | $ | 18.52 | $ | 19.54 | (2) | $ | 15.69 | ||||||||||||||||||||||||||||||||||||||||||||
RSF | 587,930 | 1,097,345 | 2,088,216 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tenant improvements/ leasing commissions | $23.25 | $20.60 | $20.61 | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average lease term | 6.4 years | 6.2 years | 5.5 years | 5.3 years | 5.9 years | 6.1 years | |||||||||||||||||||||||||||||||||||||||||||||
Developed/redeveloped/previously vacant space leased | |||||||||||||||||||||||||||||||||||||||||||||||||||
Developed/redeveloped/ previously vacant space leased | |||||||||||||||||||||||||||||||||||||||||||||||||||
New rates | $ | 57.81 | $ | 56.65 | $ | 36.19 | $ | 32.92 | $ | 50.24 | $ | 38.72 | $47.12 | $44.00 | $60.66 | $59.41 | $58.45 | $48.73 | |||||||||||||||||||||||||||||||||
Rentable square footage | 338,453 | 1,258,006 | 1,260,459 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tenant improvements/leasing commissions | $ | 11.95 | $ | 8.57 | $ | 12.42 | |||||||||||||||||||||||||||||||||||||||||||||
RSF | 232,019 | 971,576 | 2,633,476 | ||||||||||||||||||||||||||||||||||||||||||||||||
Tenant improvements/ leasing commissions | $5.30 | $18.40 | $12.57 | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average lease term | 8.0 years | 9.5 years | 32.6 years | (3) | 7.8 years | 10.5 years | 11.5 years | ||||||||||||||||||||||||||||||||||||||||||||
Leasing activity summary (totals): | |||||||||||||||||||||||||||||||||||||||||||||||||||
New rates | $ | 58.97 | $ | 57.19 | $ | 45.34 | $ | 42.20 | $ | 49.21 | $ | 43.19 | $59.57 | $56.99 | $57.61 | $55.69 | $56.94 | $50.52 | |||||||||||||||||||||||||||||||||
Rentable square footage | 786,925 | 3,189,483 | (4) | 3,390,067 | |||||||||||||||||||||||||||||||||||||||||||||||
Tenant improvements/leasing commissions | $ | 15.70 | $ | 15.21 | $ | 14.48 | |||||||||||||||||||||||||||||||||||||||||||||
RSF | 819,949 | 2,068,921 | (2) | 4,721,692 | |||||||||||||||||||||||||||||||||||||||||||||||
Tenant improvements/ leasing commissions | $18.17 | $19.57 | $16.13 | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average lease term | 7.1 years | 7.5 years | 15.6 years | 6.0 years | 8.0 years | 9.1 years | |||||||||||||||||||||||||||||||||||||||||||||
Lease expirations: (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Lease expirations(1) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Expiring rates | $ | 49.19 | $ | 53.16 | $ | 40.27 | $ | 41.75 | $ | 36.70 | $ | 39.32 | $47.19 | $51.06 | $40.06 | $42.30 | $42.98 | $45.33 | |||||||||||||||||||||||||||||||||
Rentable square footage | 470,165 | 2,228,871 | 2,484,169 | ||||||||||||||||||||||||||||||||||||||||||||||||
RSF | 645,350 | 1,293,100 | 2,811,021 |
(1) | Excludes |
(2) |
During the |
Year | Year | Number of Leases | RSF | Percentage of Occupied RSF | Annual Rental Revenue (per RSF) | Percentage of Total Annual Rental Revenue | Year | RSF | Percentage of Occupied RSF | Annual Rental Revenue (per RSF)(1) | Percentage of Total Annual Rental Revenue | ||||||||||||||||||||||||||||||||||||||||
2017 | (1) | 12 | 160,013 | 0.9 | % | $ | 49.71 | 0.9 | % | 2019 | (2) | 480,811 | 2.1 | % | $ | 39.43 | 1.7 | % | |||||||||||||||||||||||||||||||||
2018 | 105 | 1,349,740 | 7.4 | % | $ | 38.46 | 6.1 | % | 2020 | 1,565,307 | 6.9 | % | $ | 35.65 | 5.0 | % | |||||||||||||||||||||||||||||||||||
2019 | 84 | 1,419,777 | 7.7 | % | $ | 41.06 | 6.9 | % | 2021 | 1,536,381 | 6.7 | % | $ | 39.71 | 5.4 | % | |||||||||||||||||||||||||||||||||||
2020 | 104 | 1,861,344 | 10.1 | % | $ | 38.48 | 8.4 | % | 2022 | 1,814,982 | 8.0 | % | $ | 42.44 | 6.9 | % | |||||||||||||||||||||||||||||||||||
2021 | 85 | 1,665,047 | 9.1 | % | $ | 42.01 | 8.2 | % | 2023 | 2,387,653 | 10.5 | % | $ | 44.49 | 9.5 | % | |||||||||||||||||||||||||||||||||||
2022 | 72 | 1,325,010 | 7.2 | % | $ | 44.54 | 6.9 | % | 2024 | 2,082,858 | 9.1 | % | $ | 46.58 | 8.7 | % | |||||||||||||||||||||||||||||||||||
2023 | 40 | 1,703,829 | 9.3 | % | $ | 42.50 | 8.5 | % | 2025 | 1,618,527 | 7.1 | % | $ | 48.13 | 7.0 | % | |||||||||||||||||||||||||||||||||||
2024 | 29 | 1,349,860 | 7.4 | % | $ | 48.49 | 7.7 | % | 2026 | 1,390,959 | 6.1 | % | $ | 48.36 | 6.0 | % | |||||||||||||||||||||||||||||||||||
2025 | 18 | 545,918 | 3.0 | % | $ | 50.38 | 3.2 | % | 2027 | 2,371,162 | 10.4 | % | $ | 48.61 | 10.3 | % | |||||||||||||||||||||||||||||||||||
2026 | 16 | 699,825 | 3.8 | % | $ | 45.68 | 3.8 | % | 2028 | 1,566,460 | 6.9 | % | $ | 60.41 | 8.4 | % | |||||||||||||||||||||||||||||||||||
Thereafter | Thereafter | 61 | 6,267,531 | 34.1 | % | $ | 53.27 | 39.4 | % | Thereafter | 5,971,491 | 26.2 | % | $ | 58.50 | 31.1 | % | ||||||||||||||||||||||||||||||||||
Lease expirations include 100% of the RSF for each property managed by us in North America. |
(1) | Represents amounts in effect as of June 30, 2019. |
(2) | Excludes |
2017 Contractual Lease Expirations | Annual Rental Revenue (per RSF) | ||||||||||||||||||
Leased | Negotiating/ Anticipating | Targeted for Development/Redevelopment | Remaining Expiring Leases | Total (1) | |||||||||||||||
Market | |||||||||||||||||||
Greater Boston | 33,291 | 11,894 | — | 36,506 | 81,691 | $ | 46.78 | ||||||||||||
San Francisco | — | — | — | — | — | — | |||||||||||||
New York City | 9,131 | — | — | — | 9,131 | N/A | |||||||||||||
San Diego | 3,514 | — | — | 24,581 | 28,095 | 37.79 | |||||||||||||
Seattle | — | — | — | 6,180 | 6,180 | 52.89 | |||||||||||||
Maryland | 14,141 | — | — | — | 14,141 | 22.27 | |||||||||||||
Research Triangle Park | — | — | — | — | — | — | |||||||||||||
Canada | — | — | — | — | — | — | |||||||||||||
Non-cluster markets | — | — | — | 20,775 | 20,775 | 24.45 | |||||||||||||
Total | 60,077 | 11,894 | — | 88,042 | 160,013 | $ | 49.71 | ||||||||||||
Percentage of expiring leases | 38 | % | 7 | % | — | % | 55 | % | 100 | % | |||||||||
2018 Contractual Lease Expirations | Annual Rental Revenue (per RSF) | ||||||||||||||||||
Leased | Negotiating/ Anticipating | Targeted for Development/Redevelopment | Remaining Expiring Leases | Total | |||||||||||||||
Market | |||||||||||||||||||
Greater Boston | 23,419 | 57,160 | — | 209,405 | (2) | 289,984 | $ | 58.15 | |||||||||||
San Francisco | 35,562 | 54,569 | 321,971 | (3) | 73,502 | 485,604 | 35.26 | ||||||||||||
New York City | — | — | — | 6,821 | 6,821 | N/A | |||||||||||||
San Diego | 15,741 | 20,220 | — | 274,570 | (4) | 310,531 | 34.04 | ||||||||||||
Seattle | — | 15,264 | — | — | 15,264 | 43.66 | |||||||||||||
Maryland | 5,104 | 49,852 | — | 31,986 | 86,942 | 20.45 | |||||||||||||
Research Triangle Park | — | — | — | 62,760 | 62,760 | 25.94 | |||||||||||||
Canada | — | 19,992 | — | 60,697 | 80,689 | 21.00 | |||||||||||||
Non-cluster markets | — | — | — | 11,145 | 11,145 | 26.02 | |||||||||||||
Total | 79,826 | 217,057 | 321,971 | 730,886 | 1,349,740 | $ | 38.46 | ||||||||||||
Percentage of expiring leases | 6 | % | 16 | % | 24 | % | 54 | % | 100 | % | |||||||||
Lease expirations include 100% of the RSF for each property managed by us in North America. Annual rental revenue (per RSF) represents amounts in effect as of September 30, 2017. |
2019 Contractual Lease Expirations (in RSF) | Annual Rental Revenue (per RSF)(3) | ||||||||||||||||||
Market | Leased | Negotiating/ Anticipating | Targeted for Redevelopment | Remaining Expiring Leases(1) | Total(2) | ||||||||||||||
Greater Boston | 39,968 | 1,329 | — | 25,931 | 67,228 | $ | 53.50 | ||||||||||||
San Francisco | 1,287 | — | — | 65,195 | 66,482 | 41.98 | |||||||||||||
New York City | — | — | — | 1,787 | 1,787 | N/A | |||||||||||||
San Diego | 54,042 | 79,450 | (4) | — | 103,549 | (4) | 237,041 | 37.52 | |||||||||||
Seattle | — | 18,374 | — | 23,443 | 41,817 | 50.03 | |||||||||||||
Maryland | — | — | — | — | — | — | |||||||||||||
Research Triangle | — | — | — | 28,381 | 28,381 | 23.49 | |||||||||||||
Canada | — | — | — | — | — | — | |||||||||||||
Non-cluster markets | 3,111 | 1,217 | — | 33,747 | 38,075 | 22.26 | |||||||||||||
Total | 98,408 | 100,370 | — | 282,033 | 480,811 | $ | 39.43 | ||||||||||||
Percentage of expiring leases | 20 | % | 21 | % | — | % | 59 | % | 100 | % | |||||||||
2020 Contractual Lease Expirations (in RSF) | Annual Rental Revenue (per RSF)(3) | ||||||||||||||||||
Market | Leased | Negotiating/ Anticipating | Targeted for Redevelopment | Remaining Expiring Leases(5) | Total | ||||||||||||||
Greater Boston | 83,680 | 77,817 | — | 334,821 | 496,318 | $ | 46.17 | ||||||||||||
San Francisco | 21,699 | — | — | 265,276 | 286,975 | 44.16 | |||||||||||||
New York City | — | — | — | 38,076 | 38,076 | N/A | |||||||||||||
San Diego | 679 | — | — | 293,190 | 293,869 | 27.84 | |||||||||||||
Seattle | — | 12,727 | — | 32,047 | 44,774 | 38.65 | |||||||||||||
Maryland | 26,370 | 14,446 | — | 149,288 | 190,104 | 19.30 | |||||||||||||
Research Triangle | — | 29,053 | — | 60,385 | 89,438 | 16.50 | |||||||||||||
Canada | 59,088 | — | — | 35,505 | 94,593 | 28.10 | |||||||||||||
Non-cluster markets | — | — | — | 31,160 | 31,160 | 34.53 | |||||||||||||
Total | 191,516 | 134,043 | — | 1,239,748 | 1,565,307 | $ | 35.65 | ||||||||||||
Percentage of expiring leases | 12 | % | 9 | % | — | % | 79 | % | 100 | % | |||||||||
(1) |
(2) |
(3) |
(4) |
(5) | The largest remaining contractual lease expiration in 2020 is 72,742 RSF in our South San Francisco submarket. |
Remaining Lease Term in Years (1) | Aggregate RSF | Annual Rental Revenue (1) | Percentage of Aggregate Annual Rental Revenue (1) | Investment-Grade Ratings | Remaining Lease Term in Years (1) | Aggregate RSF | Annual Rental Revenue(1) | Percentage of Aggregate Annual Rental Revenue (1) | Investment-Grade Credit Ratings | Average Market Cap(2) (in billions) | |||||||||||||||||||||||||||||||||||||||||||
Tenant | Moody’s | S&P | Tenant | Moody’s | S&P | ||||||||||||||||||||||||||||||||||||||||||||||||
1 | Illumina, Inc. | 12.8 | 891,495 | $ | 34,484 | 4.0% | — | BBB | Takeda Pharmaceutical Company Ltd. | 10.1 | 606,249 | $ | 39,251 | 3.4 | % | Baa2 | BBB+ | $ | 44.9 | ||||||||||||||||||||||||||||||||||
2 | Takeda Pharmaceutical Company Ltd. | 12.5 | 386,111 | 30,610 | 3.5 | A1 | A- | Illumina, Inc. | 11.1 | 891,495 | 35,907 | 3.2 | — | BBB | $ | 44.6 | |||||||||||||||||||||||||||||||||||||
3 | Eli Lilly and Company | 12.1 | 469,266 | 29,334 | 3.4 | A2 | AA- | Sanofi | 9.0 | 494,693 | 34,219 | 3.0 | A1 | AA | $ | 107.7 | |||||||||||||||||||||||||||||||||||||
4 | Bristol-Myers Squibb Company | 10.2 | 460,050 | 28,758 | 3.3 | A2 | A+ | Eli Lilly and Company | 9.9 | 554,089 | 34,096 | 3.0 | A2 | A+ | $ | 117.7 | |||||||||||||||||||||||||||||||||||||
5 | Novartis AG | 9.1 | 377,831 | 28,627 | 3.3 | Aa3 | AA- | Celgene Corporation | 6.9 | 614,082 | 28,759 | 2.5 | (3) | Baa2 | BBB+ | $ | 60.5 | ||||||||||||||||||||||||||||||||||||
6 | Sanofi | 10.5 | 446,975 | 25,205 | 2.9 | A1 | AA | Novartis AG | 8.4 | 320,606 | 25,391 | 2.2 | A1 | AA- | $ | 219.2 | |||||||||||||||||||||||||||||||||||||
7 | Uber Technologies, Inc. | 75.2 | (2) | 422,980 | 22,130 | 2.5 | — | — | Merck & Co., Inc. | 11.9 | 421,623 | 24,304 | 2.1 | A1 | AA | $ | 195.5 | ||||||||||||||||||||||||||||||||||||
8 | New York University | 12.9 | 209,224 | 20,651 | 2.4 | Aa2 | AA- | Uber Technologies, Inc. | 73.4 | (4) | 422,980 | 22,216 | 2.0 | — | — | $ | 71.7 | ||||||||||||||||||||||||||||||||||||
9 | bluebird bio, Inc. | 9.3 | 262,261 | 20,101 | 2.3 | — | — | bluebird bio, Inc. | 7.7 | 290,617 | 21,709 | 1.9 | — | — | $ | 7.4 | |||||||||||||||||||||||||||||||||||||
10 | Roche | 4.4 | 343,861 | 17,597 | 2.0 | A1 | AA | Moderna, Inc. | 9.3 | 373,163 | 21,186 | 1.9 | — | — | $ | 6.4 | |||||||||||||||||||||||||||||||||||||
11 | Amgen Inc. | 6.5 | 407,369 | 16,838 | 1.9 | Baa1 | A | Bristol-Myers Squibb Company | 13.3 | 224,182 | 20,221 | 1.8 | (3) | A2 | A+ | $ | 85.5 | ||||||||||||||||||||||||||||||||||||
12 | Massachusetts Institute of Technology | 7.7 | 256,126 | 16,729 | 1.9 | Aaa | AAA | Roche | 4.3 | 372,943 | 19,769 | 1.7 | Aa3 | AA | $ | 220.4 | |||||||||||||||||||||||||||||||||||||
13 | Celgene Corporation | 5.9 | 360,014 | 15,276 | 1.8 | Baa2 | BBB+ | New York University | 12.2 | 201,284 | 19,002 | 1.7 | Aa2 | AA- | N/A | ||||||||||||||||||||||||||||||||||||||
14 | United States Government | 7.8 | 264,358 | 15,007 | 1.7 | Aaa | AA+ | Facebook, Inc. | 11.2 | 382,798 | 18,343 | 1.6 | — | — | $ | 478.4 | |||||||||||||||||||||||||||||||||||||
15 | FibroGen, Inc. | 6.1 | 234,249 | 14,198 | 1.6 | — | — | Pfizer Inc. | 5.7 | 416,979 | 17,754 | 1.6 | A1 | AA | $ | 241.3 | |||||||||||||||||||||||||||||||||||||
16 | Biogen Inc. | 11.0 | 305,212 | 13,278 | 1.5 | Baa1 | A- | Stripe, Inc. | 8.3 | 295,333 | 17,736 | 1.6 | — | — | N/A | ||||||||||||||||||||||||||||||||||||||
17 | Juno Therapeutics, Inc. | 11.5 | 241,276 | 12,619 | 1.5 | — | — | Massachusetts Institute of Technology | 6.0 | 256,126 | 16,843 | 1.5 | Aaa | AAA | N/A | ||||||||||||||||||||||||||||||||||||||
18 | The Regents of the University of California | 5.9 | 233,527 | 10,733 | 1.2 | Aa2 | AA | Amgen Inc. | 4.8 | 407,369 | 16,838 | 1.5 | Baa1 | A | $ | 120.7 | |||||||||||||||||||||||||||||||||||||
19 | Merrimack Pharmaceuticals, Inc. | 1.5 | (3) | 141,432 | 9,998 | 1.2 | — | — | United States Government | 8.7 | 264,358 | 15,472 | 1.4 | Aaa | AA+ | N/A | |||||||||||||||||||||||||||||||||||||
20 | Foundation Medicine, Inc. (4) | 6.4 | 171,446 | 9,910 | 1.1 | — | (4) | — | (4) | FibroGen, Inc. | 4.4 | 234,249 | 14,198 | 1.2 | — | — | $ | 4.3 | |||||||||||||||||||||||||||||||||||
Total/weighted average | 13.2 | (5) | 6,885,063 | $ | 392,083 | 45.0% | Total/weighted average | 12.0 | (4) | 8,045,218 | $ | 463,214 | 40.8 | % |
(1) | Based on |
(2) | Average daily market capitalization for the twelve months ended June 30, 2019. Refer to “Total Market Capitalization” in the “Non-GAAP Measures and Definitions” section within this Item 2 for additional information. |
(3) | In April 2019, Bristol-Myers Squibb Company’s stockholders approved the acquisition of Celgene Corporation, with the transaction close expected by Bristol-Myers Squibb Company at the end of 2019 or the beginning of 2020. Proforma for the anticipated acquisition, our annual rental revenue from Bristol-Myers Squibb Company is approximately 4.3% based on leases in effect as of June 30, 2019. |
(4) | Represents a ground lease with Uber Technologies, Inc. at 1455 and 1515 Third |
Excluding the ground lease, |
RSF | Number of Properties | Annual Rental Revenue | RSF | Number of Properties | Annual Rental Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Market | Operating | Development | Redevelopment | Total | % of Total | Total | % of Total | Per RSF | Operating | Development | Redevelopment | Total | % of Total | Total | % of Total | Per RSF | ||||||||||||||||||||||||||||||||||||||||||
Greater Boston | 6,135,551 | 91,155 | 59,173 | 6,285,879 | 30 | % | 53 | $ | 360,005 | 41 | % | $ | 61.19 | 6,459,424 | 40,597 | 19,036 | 6,519,057 | 25 | % | 56 | $ | 408,990 | 36 | % | $ | 65.05 | ||||||||||||||||||||||||||||||||
San Francisco | 3,738,400 | 750,930 | — | 4,489,330 | 22 | 34 | 171,661 | 20 | 45.92 | 5,421,729 | 2,003,130 | — | 7,424,859 | 28 | 51 | 287,184 | 25 | 54.98 | ||||||||||||||||||||||||||||||||||||||||
New York City | 727,674 | — | — | 727,674 | 4 | 2 | 63,128 | 7 | 86.93 | 1,127,580 | — | 140,098 | 1,267,678 | 5 | 5 | 79,599 | 7 | 72.31 | ||||||||||||||||||||||||||||||||||||||||
San Diego | 3,892,451 | 170,523 | 163,648 | 4,226,622 | 21 | 52 | 137,174 | 16 | 38.16 | 4,809,604 | 98,000 | — | 4,907,604 | 18 | 61 | 175,034 | 16 | 38.23 | ||||||||||||||||||||||||||||||||||||||||
Seattle | 1,006,705 | 31,215 | — | 1,037,920 | 5 | 11 | 47,671 | 5 | 48.21 | 1,374,279 | 80,221 | — | 1,454,500 | 6 | 14 | 70,490 | 6 | 52.69 | ||||||||||||||||||||||||||||||||||||||||
Maryland | 2,085,196 | — | 45,039 | 2,130,235 | 10 | 29 | 50,706 | 6 | 25.99 | 2,524,323 | 258,904 | 41,627 | 2,824,854 | 11 | 39 | 68,601 | 6 | 28.30 | ||||||||||||||||||||||||||||||||||||||||
Research Triangle Park | 1,043,726 | — | 175,000 | 1,218,726 | 6 | 16 | 25,371 | 3 | 24.77 | |||||||||||||||||||||||||||||||||||||||||||||||||
Research Triangle | 1,173,672 | — | 45,054 | 1,218,726 | 5 | 16 | 30,947 | 3 | 26.94 | |||||||||||||||||||||||||||||||||||||||||||||||||
Canada | 256,967 | — | — | 256,967 | 1 | 3 | 6,562 | 1 | 25.75 | 188,967 | — | — | 188,967 | 1 | 2 | 4,704 | — | 26.57 | ||||||||||||||||||||||||||||||||||||||||
Non-cluster markets | 268,689 | — | — | 268,689 | 1 | 6 | 6,060 | 1 | 25.46 | 390,179 | — | — | 390,179 | 1 | 11 | 11,017 | 1 | 33.28 | ||||||||||||||||||||||||||||||||||||||||
Properties held for sale | 124,698 | — | — | 124,698 | — | 2 | 2,380 | — | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||
North America | 19,155,359 | 1,043,823 | 442,860 | 20,642,042 | 100 | % | 206 | $ | 868,338 | 100 | % | $ | 47.19 | 23,594,455 | 2,480,852 | 245,815 | 26,321,122 | 100 | % | 257 | $ | 1,138,946 | 100 | % | $ | 50.27 | ||||||||||||||||||||||||||||||||
2,726,667 |
Operating Properties | Operating and Redevelopment Properties | Operating Properties | Operating and Redevelopment Properties | |||||||||||||||||||||||||||||||||
Market | 9/30/17 | 6/30/17 | 9/30/16 | 9/30/17 | 6/30/17 | 9/30/16 | 6/30/19 | 3/31/19 | 6/30/18 | 6/30/19 | 3/31/19 | 6/30/18 | ||||||||||||||||||||||||
Greater Boston | 95.9 | % | 96.2 | % | 98.3 | % | 95.0 | % | 96.2 | % | 98.3 | % | 98.7 | % | 98.2 | % | 97.2 | % | 98.4 | % | 97.7 | % | 96.7 | % | ||||||||||||
San Francisco | 100.0 | 99.6 | 99.8 | 100.0 | 99.6 | 99.8 | 98.7 | 99.8 | 99.8 | 98.7 | 98.4 | 98.8 | ||||||||||||||||||||||||
New York City | 99.8 | 99.3 | 95.0 | 99.8 | 99.3 | 95.0 | 98.8 | 98.7 | 100.0 | 87.8 | 87.7 | 100.0 | ||||||||||||||||||||||||
San Diego | 92.4 | (1) | 91.7 | 93.0 | 88.6 | 88.0 | 81.1 | 95.2 | 94.2 | 95.8 | 95.2 | 94.2 | 92.3 | |||||||||||||||||||||||
Seattle | 98.2 | 97.2 | 98.4 | 98.2 | 97.2 | 98.4 | 97.3 | 97.7 | 97.2 | 97.3 | 97.7 | 97.2 | ||||||||||||||||||||||||
Maryland | 93.6 | 93.0 | 97.4 | 91.6 | 93.0 | 97.4 | 96.7 | 97.0 | 95.7 | 95.1 | 95.3 | 91.9 | ||||||||||||||||||||||||
Research Triangle Park | 98.1 | 95.9 | 98.7 | 84.0 | 82.1 | 98.7 | ||||||||||||||||||||||||||||||
Research Triangle | 97.9 | 97.3 | 96.5 | 94.2 | 87.8 | 85.3 | ||||||||||||||||||||||||||||||
Subtotal | 96.1 | 95.7 | 97.3 | 93.9 | 94.0 | 94.4 | 97.6 | 97.6 | 97.4 | 96.6 | 95.8 | 95.2 | ||||||||||||||||||||||||
Canada | 99.2 | 99.2 | 99.3 | 99.2 | 99.2 | 99.3 | 93.7 | 93.5 | 98.6 | 93.7 | 93.5 | 98.6 | ||||||||||||||||||||||||
Non-cluster markets | 88.6 | 88.4 | 88.2 | 88.6 | 88.4 | 88.2 | 84.9 | 81.1 | 77.9 | 84.9 | 81.1 | 77.9 | ||||||||||||||||||||||||
North America | 96.1 | % | 95.7 | % | 97.1 | % | 93.9 | % | 94.0 | % | 94.4 | % | 97.4 | % | 97.2 | % | 97.1 | % | 96.4 | % | 95.5 | % | 95.0 | % |
Investments in Real Estate | Square Feet | |||||||||||
Consolidated | Unconsolidated (1) | Total | ||||||||||
Investments in real estate: | ||||||||||||
Rental properties | $ | 10,387,875 | 18,944,650 | 210,709 | 19,155,359 | |||||||
Development and redevelopment of new Class A properties: | ||||||||||||
Undergoing construction | ||||||||||||
Development projects – target delivery in 2017 | 466,047 | 651,738 | — | 651,738 | ||||||||
Development projects – target delivery in 2018 and 2019 | 143,038 | 392,085 | — | 392,085 | ||||||||
1,043,823 | — | 1,043,823 | ||||||||||
Redevelopment projects – target delivery in 2018 and 2019 | 59,224 | 442,860 | — | 442,860 | ||||||||
20,431,333 | 210,709 | 20,642,042 | ||||||||||
Near-term projects undergoing marketing and pre-construction: target delivery in 2018 and 2019 | 114,954 | 1,148,000 | — | 1,148,000 | ||||||||
Intermediate-term development projects | 333,870 | 3,263,653 | — | 3,263,653 | ||||||||
Future development projects | 289,314 | 3,981,362 | — | 3,981,362 | ||||||||
Portion of developable square feet that will replace existing RSF included in rental properties (2) | N/A | (451,310 | ) | — | (451,310 | ) | ||||||
7,941,705 | — | 7,941,705 | ||||||||||
Gross investments in real estate | 11,794,322 | 28,373,038 | 210,709 | 28,583,747 | ||||||||
Less: accumulated depreciation | (1,785,115 | ) | ||||||||||
Net investments in real estate – North America | 10,009,207 | |||||||||||
Net investments in real estate – Asia | 37,314 | |||||||||||
Investments in real estate | $ | 10,046,521 |
Development and Redevelopment | ||||||||||||||||||||||||||||
Operating | 2019 | 2020 | 2021-2022 | Future | Subtotal | Total | ||||||||||||||||||||||
Investments in real estate | ||||||||||||||||||||||||||||
Book value as of June 30, 2019(1) | $ | 13,643,291 | $ | 229,511 | $ | 475,892 | $ | 763,613 | $ | 214,338 | $ | 1,683,354 | $ | 15,326,645 | ||||||||||||||
Square footage(2)(3) | ||||||||||||||||||||||||||||
Operating | 24,499,227 | — | — | — | — | — | 24,499,227 | |||||||||||||||||||||
Construction | — | 1,528,585 | 1,198,082 | — | — | 2,726,667 | 2,726,667 | |||||||||||||||||||||
Pre-construction | — | — | 1,010,188 | 1,070,925 | — | 2,081,113 | 2,081,113 | |||||||||||||||||||||
Future | — | — | — | 3,646,797 | 5,206,542 | 8,853,339 | 8,853,339 | |||||||||||||||||||||
Total square footage | 24,499,227 | 1,528,585 | 2,208,270 | 4,717,722 | 5,206,542 | 13,661,119 | 38,160,346 | |||||||||||||||||||||
Value-creation square feet currently included in rental properties(4) | — | — | — | (351,185 | ) | (688,601 | ) | (1,039,786 | ) | (1,039,786 | ) | |||||||||||||||||
24,499,227 | 1,528,585 | 2,208,270 | 4,366,537 | 4,517,941 | 12,621,333 | 37,120,560 | ||||||||||||||||||||||
Subsequent acquisitions – pending and completed square feet included in the amounts above(3) | (904,772 | ) | — | (342,000 | ) | — | (1,535,938 | ) | (1,877,938 | ) | (2,782,710 | ) | ||||||||||||||||
23,594,455 | 1,528,585 | 1,866,270 | 4,366,537 | 2,982,003 | 10,743,395 | 34,337,850 |
(1) |
(2) | Represents square footage of development and redevelopment projects by period of projected initial occupancy. Multi-tenant projects may have occupancy by tenants over a period of time. |
(3) | Includes completed and pending acquisitions during the third quarter of 2019. Refer to |
(4) | Refer to the “Non-GAAP Measures and Definitions”section within this Item 2 for additional detail on value-creation square feet currently included in rental properties. |
Property | Submarket/Market | Date of Purchase | Number of Properties | Anticipated Use | Occupancy | Square Footage | Purchase Price | |||||||||||||||||||
Operating | Redevelopment | Future Development | ||||||||||||||||||||||||
First half of 2017 acquisitions: | ||||||||||||||||||||||||||
325 Binney Street | Cambridge/Greater Boston | 3/29/17 | — | Office/lab, residential | N/A | — | — | 208,965 | $ | 80,250 | ||||||||||||||||
88 Bluxome Street | Mission Bay/SoMa/San Francisco | 1/10/17 | 1 | Office/lab | 100% | 232,470 | — | 1,070,925 | 130,000 | |||||||||||||||||
960 Industrial Road | Greater Stanford/San Francisco | 5/17/17 | 1 | Office/lab | 100% | 195,000 | — | 500,000 | 64,959 | |||||||||||||||||
825 and 835 Industrial Road | Greater Stanford/San Francisco | 6/1/17 | — | Office/lab | N/A | — | — | 530,000 | 85,000 | |||||||||||||||||
1450 Page Mill Road (1) | Greater Stanford/San Francisco | 6/1/17 | 1 | Office | 100% | 77,634 | — | — | 85,300 | |||||||||||||||||
3050 Callan Road and Vista Wateridge | Torrey Pines/Sorrento Mesa/ San Diego | 3/24/17 | — | Office/lab | N/A | — | — | 229,000 | 8,250 | |||||||||||||||||
5 Laboratory Drive | Research Triangle Park/RTP | 5/25/17 | 1 | Office/lab | N/A | — | 175,000 | — | 8,750 | |||||||||||||||||
4 | 505,104 | 175,000 | 2,538,890 | 462,509 | ||||||||||||||||||||||
Third quarter of 2017 acquisitions: | ||||||||||||||||||||||||||
266 and 275 Second Avenue | Route 128/Greater Boston | 7/11/17 | 2 | Office/lab | 100% | 144,584 | 59,173 | — | 71,000 | |||||||||||||||||
201 Haskins Way | South San Francisco/ San Francisco | 9/11/17 | 1 | Office/lab | 100% | 23,840 | — | 280,000 | 33,000 | |||||||||||||||||
9900 Medical Center Drive | Rockville/Maryland | 8/4/17 | 1 | Office/lab | N/A | — | 45,039 | — | 6,700 | |||||||||||||||||
4 | 168,424 | 104,212 | 280,000 | 110,700 | ||||||||||||||||||||||
Pending: | ||||||||||||||||||||||||||
1455 and 1515 Third Street (acquisition of remaining 49% interest) | Mission Bay/SoMa/San Francisco | 11/10/16 | 2 | Ground lease | 100% | 422,980 | — | — | 37,800 | (2) | ||||||||||||||||
Other | 60,000 | |||||||||||||||||||||||||
279,212 | 2,818,890 | $ | 671,009 |
Property | Submarket/Market | Date of Purchase | Number of Properties | Operating Occupancy | Square Footage | Unlevered Yields | Purchase Price | ||||||||||||||||||||||||||||
Future Development | Active Redevelopment | Operating With Future Development/ Redevelopment | Operating | Initial Stabilized | Initial Stabilized (Cash) | ||||||||||||||||||||||||||||||
Value-creation | |||||||||||||||||||||||||||||||||||
10 Necco Street | Seaport Innovation District/Greater Boston | 3/26/19 | — | N/A | 175,000 | — | — | — | (1 | ) | (1 | ) | 81,100 | ||||||||||||||||||||||
Other | 7/10/19 | — | N/A | 135,938 | — | — | — | (1 | ) | (1 | ) | 25,000 | |||||||||||||||||||||||
— | 310,938 | — | — | — | 106,100 | ||||||||||||||||||||||||||||||
Operating with value-creation | |||||||||||||||||||||||||||||||||||
5 Necco Street | Seaport Innovation District/Greater Boston | 5/9/19(2) | 1 | 87 | % | — | — | — | 87,163 | 5.2 | % | 5.1 | % | 252,000 | |||||||||||||||||||||
15 Necco Street | — | N/A | 293,000 | — | — | — | (1 | ) | (1 | ) | |||||||||||||||||||||||||
601 Dexter Avenue North | Lake Union/Seattle | 6/18/19 | 1 | 100 | % | 188,400 | — | 18,680 | — | (1 | ) | (1 | ) | 28,500 | |||||||||||||||||||||
3911 and 3931 Sorrento Valley Boulevard | Sorrento Valley/ San Diego | 1/9/19 | 2 | 100 | % | — | — | 53,220 | — | 7.2 | % | 6.6 | % | 23,250 | |||||||||||||||||||||
4075 Sorrento Valley Boulevard | Sorrento Valley/ San Diego | 5/13/19 | 1 | 100 | % | 149,000 | — | 40,000 | — | (1 | ) | (1 | ) | 16,000 | |||||||||||||||||||||
Other | 2/6/19 | 4 | — | — | 75,864 | — | 39,150 | ||||||||||||||||||||||||||||
9 | 630,400 | — | 187,764 | 87,163 | 358,900 | ||||||||||||||||||||||||||||||
Operating | |||||||||||||||||||||||||||||||||||
4224/4242 Campus Point Court and 10210 Campus Point Drive (55% interest in consolidated JV) | University Town Center/ San Diego | 7/9/19 | 3 | 83 | % | (3) | — | — | — | 314,092 | 6.9 | % | 6.0 | % | 140,250 | ||||||||||||||||||||
3170 Porter Drive | Greater Stanford/ San Francisco | 1/10/19 | 1 | 100 | % | — | — | — | 98,626 | 7.5 | % | 5.1 | % | 100,250 | |||||||||||||||||||||
Shoreway Science Center | Greater Stanford/ San Francisco | 1/10/19 | 2 | 100 | % | — | — | — | 82,462 | 7.2 | % | 5.5 | % | 73,200 | |||||||||||||||||||||
260 Townsend Street | Mission Bay/SoMa/ San Francisco | 3/14/19 | 1 | 100 | % | — | — | — | 66,682 | 7.4 | % | 5.8 | % | 66,000 | |||||||||||||||||||||
Other | 7/12/19 | 1 | 100 | % | — | — | — | 30,680 | 13,200 | ||||||||||||||||||||||||||
8 | — | — | — | 592,542 | 392,900 | ||||||||||||||||||||||||||||||
Total acquisitions | 17 | 941,338 | — | 187,764 | 679,705 | 857,900 | |||||||||||||||||||||||||||||
10260 Campus Point Drive and 4161 Campus Point Court | University Town Center/San Diego | 1/2/19 | 2 | 100 | % | N/A | N/A | N/A | N/A | (4 | ) | (4 | ) | 65,000 | |||||||||||||||||||||
Pending | Various | 627,100 | |||||||||||||||||||||||||||||||||
Total | $ | 1,550,000 |
(1) |
(2) |
(3) | The property is currently 83% occupied and a lease for 10% of the |
(4) | Refer to the “New Class A Development and Redevelopment Properties: Summary of |
Net Operating Income (1) | Net Operating Income (Cash Basis) (1) | Contractual Sales Price | Gain | |||||||||||||||||||
Property/Market/Submarket | Date of Sale | RSF | ||||||||||||||||||||
6146 Nancy Ridge Drive/San Diego/Sorrento Mesa | 1/6/17 | 21,940 | N/A | N/A | $ | 3,000 | $ | 270 | ||||||||||||||
1401/1413 Research Boulevard/Maryland/Rockville (2) | 5/17/17 | 90,000 | N/A | N/A | 7,937 | 111 | ||||||||||||||||
360 Longwood Avenue/Greater Boston/Longwood Medical Area (3) | 7/6/17 | 203,090 | $ | 4,313 | $ | 4,168 | 65,701 | 14,106 | ||||||||||||||
$ | 76,638 | $ | 14,487 |
Capitalization Rate (Cash Basis)(1) | Sales Price per RSF | Consideration in Excess of Book Value(2) | |||||||||||||||||||||||||||||
Property | Submarket/Market | Date of Sale | Square Footage | Capitalization Rate | Sales Price | ||||||||||||||||||||||||||
Sales of noncontrolling partial interests in core Class A properties: | |||||||||||||||||||||||||||||||
75/125 Binney Street (sale of 60% noncontrolling interest) | Cambridge/Greater Boston | 2/13/19 | 388,270 | 4.2% | 4.3% | $ | 438,000 | $ | 1,880 | $ | 202,246 | ||||||||||||||||||||
Pending(3) | San Francisco Bay Area | Pending | TBD | TBD | TBD | 140,000 | TBD | TBD | |||||||||||||||||||||||
Pending(3) | San Diego | Pending | TBD | TBD | TBD | 287,500 | TBD | TBD | |||||||||||||||||||||||
$ | 865,500 | ||||||||||||||||||||||||||||||
2019 guidance range | $ | 820,000 | - | $ | 920,000 | ||||||||||||||||||||||||||
(1) | Capitalization rates are calculated based upon net operating income (cash basis), annualized for the quarter preceding the date on which the property is sold. |
(2) | We retained or expect to retain control over and consolidate these joint ventures. For consolidated joint ventures, we account for the difference between the consideration received and the book value of the interest to be sold as an equity transaction, with no gain or loss recognized in earnings. |
(3) | We expect to complete this partial interest sale during the third quarter of 2019. |
(1) | Represents |
(2) |
(1) | Upon completion of |
(2) | Carbon pollution reduction is for |
(3) |
(4) | Upon completion of |
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399 Binney Street | 266 and 275 Second Avenue | 279 East Grand Avenue | 681 Gateway Boulevard | |||||||||||||||
Greater Boston/Cambridge | Greater Boston/Route 128 | San Francisco/South San Francisco | San Francisco/South San Francisco | |||||||||||||||
164,000 RSF | 203,757 RSF | 211,405 RSF | 142,400 RSF | |||||||||||||||
In Service: | In Service: | In Service: | In Service: | |||||||||||||||
123,403 | RSF | | | 100% Occupied | 40,137 | RSF | | | 100% Occupied | 164,206 | RSF | | | 100% Occupied | 142,400 | RSF | | | 89.2% Occupied | |||
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Alexandria PARC | 188 East Blaine Street | Alexandria Center® for AgTech, Phase I | |||||||||||
San Francisco/Greater Stanford | Seattle/Lake Union | Research Triangle/Research Triangle | |||||||||||
197,498 RSF | 198,000 RSF | 175,000 RSF | |||||||||||
In Service: | In Service: | In Service: | |||||||||||
48,547 | RSF | | | 96.8% Occupied | 117,779 | RSF | | | 100% Occupied | 129,946 | RSF | | | 100% Occupied | ||
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Property/Market/Submarket | Our Ownership Interest | Date Delivered | RSF in Service | Total Project | Unlevered Yields (1) | ||||||||||||||||||||||||||||||||||||||||
Prior to 10/1/16 | Placed into Service | Total | Average Cash | Initial Stabilized Cash Basis | Initial Stabilized | ||||||||||||||||||||||||||||||||||||||||
4Q16 | 1Q17 | 2Q17 | 3Q17 | Leased | RSF | Investment | |||||||||||||||||||||||||||||||||||||||
Consolidated development projects | |||||||||||||||||||||||||||||||||||||||||||||
100 Binney Street/Greater Boston/Cambridge | 100% | 9/21/17 | — | — | — | — | 341,776 | 341,776 | 100% | 432,931 | $ | 439,000 | (2) | 8.5 | % | (2) | 7.4 | % | (2) | 8.2 | % | (2) | |||||||||||||||||||||||
1455 and 1515 Third Street/ San Francisco/Mission Bay/SoMa | 100% | 11/10/16 | — | 422,980 | — | — | — | 422,980 | 100% | 422,980 | $ | 155,000 | 14.5 | % | 7.0 | % | 14.4 | % | |||||||||||||||||||||||||||
ARE Spectrum/San Diego/ Torrey Pines | 100% | Various | 102,938 | — | 31,336 | 31,664 | — | 165,938 | 98% | 336,461 | $ | 278,000 | 6.9 | % | 6.1 | % | 6.4 | % | |||||||||||||||||||||||||||
5200 Illumina Way, Parking Structure/San Diego/ University Town Center | 100% | 5/15/17 | — | — | — | N/A | — | N/A | 100% | N/A | $ | 60,000 | 7.0 | % | 7.0 | % | 7.0 | % | |||||||||||||||||||||||||||
4796 Executive Drive/ San Diego/ University Town Center | 100% | 12/1/16 | — | 61,755 | — | — | — | 61,755 | 100% | 61,755 | $ | 41,000 | 8.0 | % | 7.0 | % | 7.4 | % | |||||||||||||||||||||||||||
400 Dexter Avenue North/Seattle/ Lake Union | 100% | Various | — | — | 241,276 | — | 17,620 | 258,896 | 89% | 290,111 | $ | 232,000 | 7.3 | % | 6.9 | % | 7.2 | % | |||||||||||||||||||||||||||
Consolidated redevelopment projects | |||||||||||||||||||||||||||||||||||||||||||||
10290 Campus Point Drive/ San Diego/ University Town Center | 55% | 12/2/16 | — | 305,006 | — | — | — | 305,006 | 100% | 305,006 | $ | 231,000 | 7.7 | % | 6.8 | % | 7.1 | % | |||||||||||||||||||||||||||
Unconsolidated joint venture development project | |||||||||||||||||||||||||||||||||||||||||||||
360 Longwood Avenue/ Greater Boston/ Longwood Medical Area (3) | 27.5% | Various | 313,407 | 100,392 | — | — | — | 413,799 | 80% | 413,799 | (3) | $ | 108,965 | 8.2 | % | 7.3 | % | 7.8 | % | ||||||||||||||||||||||||||
Total | 416,345 | 890,133 | 272,612 | 31,664 | 359,396 | 1,970,150 |
Property/Market/Submarket | Our Ownership Interest | Date Delivered | RSF Placed Into Service | Occupancy Percentage(1) | Total Project | Unlevered Yields | |||||||||||||||||||||||||||||||||
Initial Stabilized | Initial Stabilized (Cash) | ||||||||||||||||||||||||||||||||||||||
Prior to 10/1/18 | 4Q18 | 1Q19 | 2Q19 | Total | RSF | Investment | |||||||||||||||||||||||||||||||||
Consolidated development projects | |||||||||||||||||||||||||||||||||||||||
213 East Grand Avenue/San Francisco/ South San Francisco | 100% | 12/31/18 | — | 300,930 | — | — | 300,930 | 100% | 300,930 | $ | 256,600 | 7.4 | % | 6.5 | % | ||||||||||||||||||||||||
399 Binney Street/Greater Boston/Cambridge | 100% | 1/25/19 | — | — | 123,403 | — | 123,403 | 100% | 164,000 | $ | 182,000 | 7.7 | % | 7.2 | % | ||||||||||||||||||||||||
279 East Grand Avenue/San Francisco/ South San Francisco | 100% | Various | — | — | 139,810 | 24,396 | 164,206 | 100% | 211,405 | $ | 151,000 | 7.8 | % | 8.1 | % | ||||||||||||||||||||||||
188 East Blaine Street/Seattle/Lake Union | 100% | Various | — | — | 90,615 | 27,164 | 117,779 | 100% | 198,000 | $ | 190,000 | 6.7 | % | 6.7 | % | ||||||||||||||||||||||||
Consolidated redevelopment projects | |||||||||||||||||||||||||||||||||||||||
266 and 275 Second Avenue/Greater Boston/ Route 128 | 100% | Various | 27,315 | — | — | 12,822 | 40,137 | 100% | 203,757 | $ | 89,000 | 8.4 | % | 7.1 | % | ||||||||||||||||||||||||
Alexandria Center® for AgTech, Phase I/ Research Triangle/Research Triangle | 100% | Various | 45,143 | 8,380 | 2,614 | 73,809 | 129,946 | 100% | 175,000 | $ | 77,100 | 7.6 | % | 7.5 | % | ||||||||||||||||||||||||
9625 Towne Centre Drive/San Diego/ University Town Center | 50.1% | 11/1/18 | — | 163,648 | — | — | 163,648 | 100% | 163,648 | $ | 89,000 | 7.3 | % | 7.3 | % | ||||||||||||||||||||||||
9900 Medical Center Drive/Maryland/Rockville | 100% | 11/19/18 | — | 45,039 | — | — | 45,039 | 60.6% | 45,039 | $ | 16,800 | 8.6 | % | 8.4 | % | ||||||||||||||||||||||||
681 Gateway Boulevard/San Francisco/ South San Francisco | 100% | Various | — | — | 66,000 | 76,400 | 142,400 | 89.2% | 142,400 | $ | 116,300 | 8.5 | % | 8.2 | % | ||||||||||||||||||||||||
Alexandria PARC/San Francisco/Greater Stanford | 100% | 3/29/19 | — | — | 48,547 | — | 48,547 | 96.8% | 197,498 | $ | 152,600 | 7.3 | % | 6.2 | % | ||||||||||||||||||||||||
Unconsolidated joint venture redevelopment project (RSF represents 100%; dollars and yields represent our share) | |||||||||||||||||||||||||||||||||||||||
704 Quince Orchard Road/Maryland/Gaithersburg | 56.8% | Various | — | 4,762 | 10,250 | 3,470 | 18,482 | 100% | 79,931 | $ | 13,300 | 8.9 | % | 8.8 | % | ||||||||||||||||||||||||
Total | 72,458 | 522,759 | 481,239 | 218,061 | 1,294,517 | 7.6 | % | 7.1 | % |
(1) |
Unlevered Yields | ||||||||||||||
Investment | Average Cash | Initial Stabilized Cash Basis | Initial Stabilized | |||||||||||
Final | $ | 439,000 | 8.5 | % | 7.4 | % | 8.2 | % | ||||||
Original | $ | 535,000 | 7.9 | % | 7.0 | % | 7.7 | % |
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Project RSF | Percentage | Occupancy | |||||||||||||||||||
Property/Market/Submarket | In Service | CIP | Total | Leased | Negotiating | Total | Initial | Stabilized | |||||||||||||
ARE Spectrum/San Diego/Torrey Pines | 165,938 | 170,523 | 336,461 | 98 | % | — | % | 98 | % | 1Q17 | 4Q17 | ||||||||||
400 Dexter Avenue North/Seattle/Lake Union | 258,896 | 31,215 | 290,111 | 89 | % | 11 | % | 100 | % | 1Q17 | 4Q17 | ||||||||||
510 Townsend Street/San Francisco/Mission Bay/SoMa | — | 300,000 | 300,000 | 100 | % | — | % | 100 | % | 4Q17 | 4Q17 | ||||||||||
505 Brannan Street, Phase I/San Francisco/Mission Bay/SoMa | — | 150,000 | 150,000 | 100 | % | — | % | 100 | % | 4Q17 | 4Q17 | ||||||||||
Total | 424,834 | 651,738 | 1,076,572 | 97 | % | 2 | % | 99 | % |
Unlevered Yields | |||||||||||||||||||||||||||||||
Property/Market/Submarket | Our Ownership Interest | Cost to Complete | Total at Completion | Average Cash | Initial Stabilized Cash Basis | Initial Stabilized | |||||||||||||||||||||||||
In Service | CIP | ||||||||||||||||||||||||||||||
ARE Spectrum/San Diego/Torrey Pines | 100% | $ | 103,170 | $ | 143,149 | $ | 31,681 | $ | 278,000 | 6.9 | % | 6.1 | % | 6.4 | % | ||||||||||||||||
400 Dexter Avenue North/Seattle/Lake Union | 100% | 188,919 | 19,243 | 23,838 | 232,000 | 7.3 | % | 6.9 | % | 7.2 | % | ||||||||||||||||||||
510 Townsend Street/San Francisco/Mission Bay/SoMa | 100% | — | 187,133 | 50,867 | 238,000 | 7.9 | % | 7.0 | % | 7.2 | % | ||||||||||||||||||||
505 Brannan Street, Phase I/San Francisco/Mission Bay/SoMa | 99.7% | — | 116,522 | 24,478 | 141,000 | 8.6 | % | 7.0 | % | 8.2 | % | ||||||||||||||||||||
Total | $ | 292,089 | $ | 466,047 | $ | 130,864 | $ | 889,000 |
399 Binney Street | 266 and 275 Second Avenue | 1655 and | 279 East Grand Avenue | |||||
Greater Boston/Cambridge | Greater Boston/Route 128 | San Francisco/Mission Bay/SoMa | San Francisco/South San Francisco | |||||
164,000 | ||||||||
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Alexandria Center® – Long Island City | Alexandria Center® for AgTech, Phase I | |||||||
San Francisco/Greater Stanford | New York City/New York City | Seattle/Lake Union | Maryland/Gaithersburg | Research Triangle/Research Triangle | ||||
772,983 RSF | 176,759 RSF | 198,000 RSF | 79,931 RSF | 175,000 RSF | ||||
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88 Bluxome Street | 201 Haskins Way | Alexandria District for Science and Technology(1) | 3115 Merryfield Row | 9880 Campus Point Drive and 4150 Campus Point Court | ||||
San Francisco/Mission Bay/SoMa | San Francisco/South San Francisco | San Francisco/Greater Stanford | San Diego/Torrey Pines | San Diego/University Town Center | ||||
1,070,925 RSF | 315,000 RSF | 526,178 RSF | 87,000 RSF | 269,102 RSF | ||||
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1165 Eastlake Avenue East | 9800 Medical Center Drive | 9950 Medical Center Drive | 8 Davis Drive | Alexandria Center® for AgTech, Phase II | ||||
Seattle/Lake Union | Maryland/Rockville | Maryland/Rockville | Research Triangle/Research Triangle | Research Triangle/Research Triangle | ||||
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(1) | Campus includes 825 and 835 Industrial Road. |
Property/Market/Submarket | Dev/Redev | Project RSF | Percentage | Project Start (1) | Occupancy (1) | |||||||||||||||||||||||
In Service | CIP | Total | Leased | Negotiating | Total | Initial | Stabilized | |||||||||||||||||||||
Developments under construction | ||||||||||||||||||||||||||||
100 Binney Street/Greater Boston/Cambridge | Dev | 341,776 | 91,155 | 432,931 | 100 | % | — | % | 100 | % | 3Q15 | 3Q17 | 1Q18 | |||||||||||||||
213 East Grand Avenue/San Francisco/South San Francisco | Dev | — | 300,930 | 300,930 | 100 | % | — | % | 100 | % | 2Q17 | 1Q19 | 2019 | |||||||||||||||
341,776 | 392,085 | 733,861 | 100 | % | — | % | 100 | % | ||||||||||||||||||||
Redevelopments under construction | ||||||||||||||||||||||||||||
266 and 275 Second Avenue/Greater Boston/Route 128 | Redev | 144,584 | 59,173 | 203,757 | 84 | % | — | % | 84 | % | 3Q17 | 2Q18 | 2018 | |||||||||||||||
5 Laboratory Drive/Research Triangle Park/RTP | Redev | — | 175,000 | 175,000 | — | % | 39 | % | 39 | % | 2Q17 | 3Q18 | 2019 | |||||||||||||||
9625 Towne Centre Drive/San Diego/University Town Center | Redev | — | 163,648 | 163,648 | 100 | % | — | % | 100 | % | 3Q15 | 4Q18 | 2018 | |||||||||||||||
9900 Medical Center Drive/Maryland/Rockville | Redev | — | 45,039 | 45,039 | — | % | — | % | — | % | 3Q17 | 2Q18 | 2018 | |||||||||||||||
144,584 | 442,860 | 587,444 | 57 | % | 12 | % | 69 | % | ||||||||||||||||||||
Near-term projects undergoing marketing and pre-construction | ||||||||||||||||||||||||||||
399 Binney Street/Greater Boston/Cambridge | Dev | — | 164,000 | 164,000 | — | % | 73 | % | (2) | 73 | % | 4Q17 | 4Q18 | 2019 | ||||||||||||||
1655 and 1715 Third Street/San Francisco/Mission Bay/SoMa (3) | Dev | — | 580,000 | 580,000 | 100 | % | (3) | — | % | 100 | % | 2Q18 | 2019 | 2019 | ||||||||||||||
279 East Grand Avenue/San Francisco/South San Francisco | Dev | — | 199,000 | 199,000 | TBD | TBD | 2019 | TBD | ||||||||||||||||||||
1818 Fairview Avenue East/Seattle/Lake Union | Dev | — | 205,000 | 205,000 | TBD | 2019 | TBD | |||||||||||||||||||||
681 Gateway Boulevard/San Francisco/South San Francisco (4) | Redev | 126,971 | — | 126,971 | 4Q18 | 2019 | TBD | |||||||||||||||||||||
126,971 | 1,148,000 | 1,274,971 |
Square Footage | Project Start/Projected Start | ||||||||||||||||||||||||||||||
Property/Market/Submarket | Dev/Redev | CIP | Total Project | Percentage | Occupancy(1) | ||||||||||||||||||||||||||
In Service | Construction | Pre-Construction | Total | Leased | Leased/Negotiating | Initial | Stabilized | ||||||||||||||||||||||||
2019 deliveries: consolidated projects | |||||||||||||||||||||||||||||||
266 and 275 Second Avenue/Greater Boston/Route 128 | Redev | 184,721 | 19,036 | — | 19,036 | 203,757 | 100 | % | 100 | % | 3Q17 | 1Q18 | 2019 | ||||||||||||||||||
Alexandria Center® for AgTech, Phase I/Research Triangle/ Research Triangle | Redev | 129,946 | 45,054 | — | 45,054 | 175,000 | 97 | 100 | 2Q17 | 2Q18 | 2019 | ||||||||||||||||||||
399 Binney Street/Greater Boston/Cambridge | Dev | 123,403 | 40,597 | — | 40,597 | 164,000 | 98 | 98 | 4Q17 | 1Q19 | 2019 | ||||||||||||||||||||
279 East Grand Avenue/San Francisco/South San Francisco | Dev | 164,206 | 47,199 | — | 47,199 | 211,405 | 100 | 100 | 4Q17 | 1Q19 | 2020 | ||||||||||||||||||||
188 East Blaine Street/Seattle/Lake Union | Dev | 117,779 | 80,221 | — | 80,221 | 198,000 | 67 | 79 | 2Q18 | 1Q19 | 2020 | ||||||||||||||||||||
Alexandria Center® – Long Island City/New York City/ New York City | Redev | 36,661 | 140,098 | — | 140,098 | 176,759 | 21 | 21 | 4Q18 | 4Q19 | 2020 | ||||||||||||||||||||
2019 deliveries: unconsolidated joint venture projects | |||||||||||||||||||||||||||||||
(amounts represent 100%) | |||||||||||||||||||||||||||||||
704 Quince Orchard Road/Maryland/Gaithersburg | Redev | 38,304 | 41,627 | — | 41,627 | 79,931 | 48 | 67 | 1Q18 | 4Q18 | 2019 | ||||||||||||||||||||
1655 and 1725 Third Street/San Francisco/Mission Bay/SoMa | Dev | — | 593,765 | — | 593,765 | 593,765 | 100 | 100 | 1Q18 | 3Q19 | 3Q19 | ||||||||||||||||||||
Menlo Gateway/San Francisco/Greater Stanford | Dev | 251,995 | 520,988 | — | 520,988 | 772,983 | 100 | 100 | 4Q17 | 4Q19 | 4Q19 | ||||||||||||||||||||
2019 deliveries | 1,047,015 | 1,528,585 | — | 1,528,585 | 2,575,600 | 90 | % | 92 | % | ||||||||||||||||||||||
2020 projected deliveries: consolidated projects | |||||||||||||||||||||||||||||||
9880 Campus Point Drive and 4150 Campus Point Court/ San Diego/University Town Center(2) | Dev | — | 98,000 | 171,102 | 269,102 | 269,102 | 66 | % | 69 | % | 1Q19 | 2020 | 2022 | ||||||||||||||||||
9800 Medical Center Drive/Maryland/Rockville | Dev | — | 174,640 | — | 174,640 | 174,640 | 82 | 82 | 1Q19 | 2020 | 2020 | ||||||||||||||||||||
9950 Medical Center Drive/Maryland/Rockville | Dev | — | 84,264 | — | 84,264 | 84,264 | 100 | 100 | 1Q19 | 2020 | 2020 | ||||||||||||||||||||
201 Haskins Way/San Francisco/South San Francisco | Dev | — | 315,000 | — | 315,000 | 315,000 | — | 29 | 2Q19 | 2020 | 2021 | ||||||||||||||||||||
Alexandria District for Science and Technology/San Francisco/ Greater Stanford | Dev | — | 526,178 | — | 526,178 | 526,178 | 37 | 46 | 2Q19 | 2020 | 2021 | ||||||||||||||||||||
74 | % | 79 | % | ||||||||||||||||||||||||||||
2020 projected deliveries: marketing and pre-construction projects | |||||||||||||||||||||||||||||||
Third quarter of 2019 acquisitions: | |||||||||||||||||||||||||||||||
Pending acquisition/San Francisco Bay Area(3) | Redev | — | — | 250,000 | 250,000 | 250,000 | 3Q19 | 2020 | 2021/22 | ||||||||||||||||||||||
Pending acquisition/San Francisco Bay Area(3) | Redev | — | — | 92,000 | 92,000 | 92,000 | 3Q19 | 2020 | 2021 | ||||||||||||||||||||||
1165 Eastlake Avenue East/Seattle/Lake Union | Dev | — | — | 100,086 | 100,086 | 100,086 | 4Q19 | 2020 | 2020 | ||||||||||||||||||||||
8 Davis Drive/Research Triangle/Research Triangle | Dev | — | — | 150,000 | 150,000 | 150,000 | 4Q19 | 2020 | 2021 | ||||||||||||||||||||||
Alexandria Center® for AgTech, Phase II/Research Triangle/ Research Triangle | Dev | — | — | 160,000 | 160,000 | 160,000 | 4Q19 | 2020 | 2021 | ||||||||||||||||||||||
3115 Merryfield Row/San Diego/Torrey Pines | Dev | — | — | 87,000 | 87,000 | 87,000 | 4Q19 | 2020 | 2021 | ||||||||||||||||||||||
2020 projected deliveries | — | 1,198,082 | 1,010,188 | 2,208,270 | 2,208,270 | ||||||||||||||||||||||||||
Pre-leased pre-construction project: | |||||||||||||||||||||||||||||||
88 Bluxome Street/San Francisco/Mission Bay/SoMa | Dev | — | — | 1,070,925 | 1,070,925 | 1,070,925 | 58 | % | 58 | % | 2020 | 2022 | TBD | ||||||||||||||||||
Total | 1,047,015 | 2,726,667 | 2,081,113 | 4,807,780 | 5,854,795 | ||||||||||||||||||||||||||
Our Ownership Interest | Unlevered Yields | |||||||||||||||||||||||||||||||||||
Property/Market/Submarket | In Service | CIP | Cost to Complete | Total at Completion | Average Cash | Initial Stabilized Cash Basis | Initial Stabilized | |||||||||||||||||||||||||||||
Developments under construction | ||||||||||||||||||||||||||||||||||||
100 Binney Street/Greater Boston/Cambridge | 100% | $ | 280,163 | $ | 70,143 | $ | 88,694 | $ | 439,000 | (5) | 8.5 | % | (5) | 7.4 | % | (5) | 8.2 | % | (5) | |||||||||||||||||
213 East Grand Avenue/San Francisco/South San Francisco | 100% | — | 72,895 | 187,105 | 260,000 | 7.8 | % | 6.4 | % | 7.2 | % | |||||||||||||||||||||||||
$ | 280,163 | $ | 143,038 | $ | 275,799 | $ | 699,000 | 8.2 | % | 7.0 | % | 7.8 | % | |||||||||||||||||||||||
Redevelopments under construction | ||||||||||||||||||||||||||||||||||||
266 and 275 Second Avenue/Greater Boston/Route 128 | $ | 60,596 | $ | 9,646 | TBD | |||||||||||||||||||||||||||||||
5 Laboratory Drive/Research Triangle Park/RTP | 100% | — | 10,461 | |||||||||||||||||||||||||||||||||
9625 Towne Centre Drive/San Diego/University Town Center | 100% | — | 31,880 | $ | 61,120 | $ | 93,000 | 7.9 | % | 7.0 | % | 7.0 | % | |||||||||||||||||||||||
9900 Medical Center Drive/Maryland/Rockville | 100% | — | 7,237 | TBD | TBD | TBD | TBD | TBD | ||||||||||||||||||||||||||||
100% | $ | 60,596 | $ | 59,224 | ||||||||||||||||||||||||||||||||
Near-term projects undergoing marketing and pre-construction (6) | Various | $ | — | $ | 114,954 |
(1) |
(2) |
(3) |
Our Ownership Interest | Cost to Complete | Unlevered Yields | |||||||||||||||||||||||||||||||||||
Property/Market/Submarket | In Service | CIP | Construction Loan | ARE Funding | Total at Completion | Initial Stabilized | Initial Stabilized (Cash) | ||||||||||||||||||||||||||||||
2019 deliveries: consolidated projects | |||||||||||||||||||||||||||||||||||||
266 and 275 Second Avenue/Greater Boston/Route 128 | 100 | % | $ | 79,231 | $ | 6,712 | $ | — | $ | 3,057 | $ | 89,000 | 8.4 | % | 7.1 | % | |||||||||||||||||||||
Alexandria Center® for AgTech, Phase I/Research Triangle/Research Triangle(1) | 100 | % | 51,984 | 18,383 | — | 6,733 | 77,100 | 7.6 | 7.5 | ||||||||||||||||||||||||||||
399 Binney Street/Greater Boston/Cambridge | 100 | % | 135,088 | 42,258 | — | 4,654 | 182,000 | 7.7 | 7.2 | ||||||||||||||||||||||||||||
279 East Grand Avenue/San Francisco/South San Francisco | 100 | % | 85,655 | 42,369 | — | 22,976 | 151,000 | 7.8 | 8.1 | ||||||||||||||||||||||||||||
188 East Blaine Street/Seattle/Lake Union | 100 | % | 91,075 | 51,957 | — | 46,968 | 190,000 | 6.7 | 6.7 | ||||||||||||||||||||||||||||
Alexandria Center® – Long Island City/New York City/New York City | 100 | % | 16,107 | 67,832 | — | 100,361 | 184,300 | 5.5 | 5.6 | ||||||||||||||||||||||||||||
2019 deliveries: unconsolidated joint venture projects(2) | |||||||||||||||||||||||||||||||||||||
(amounts represent our share) | |||||||||||||||||||||||||||||||||||||
704 Quince Orchard Road/Maryland/Gaithersburg | 56.8 | % | 4,301 | 4,275 | 3,952 | 772 | 13,300 | 8.9 | 8.8 | ||||||||||||||||||||||||||||
1655 and 1725 Third Street/San Francisco/Mission Bay/SoMa | 10.0 | % | — | 65,482 | 11,537 | 981 | 78,000 | 7.8 | 6.0 | ||||||||||||||||||||||||||||
Menlo Gateway/San Francisco/Greater Stanford | 48.3 | % | 125,779 | 222,228 | 74,940 | 7,053 | 430,000 | 6.9 | 6.3 | ||||||||||||||||||||||||||||
2019 deliveries | 589,220 | 521,496 | 90,429 | 193,555 | 1,394,700 | 7.1 | 6.7 | ||||||||||||||||||||||||||||||
2020 projected deliveries: consolidated projects | |||||||||||||||||||||||||||||||||||||
9880 Campus Point Drive and 4150 Campus Point Court/San Diego/ University Town Center(3) | 100 | % | — | 98,463 | — | 156,537 | 255,000 | 6.3 | (3) | 6.4 | (3) | ||||||||||||||||||||||||||
9800 Medical Center Drive/Maryland/Rockville | 100 | % | — | 19,997 | — | 75,403 | 95,400 | 7.7 | 7.2 | ||||||||||||||||||||||||||||
9950 Medical Center Drive/Maryland/Rockville | 100 | % | — | 9,753 | — | 44,547 | 54,300 | 7.3 | 6.8 | ||||||||||||||||||||||||||||
201 Haskins Way/San Francisco/South San Francisco | 100 | % | — | 91,459 | 204,541 | 296,000 | 6.6 | 6.6 | |||||||||||||||||||||||||||||
Alexandria District for Science and Technology/San Francisco/Greater Stanford | 100 | % | — | 188,255 | — | 388,745 | 577,000 | 6.5 | 6.2 | ||||||||||||||||||||||||||||
— | 407,927 | — | 869,773 | 1,277,700 | 6.6 | 6.4 | |||||||||||||||||||||||||||||||
$ | 90,429 | $ | 1,063,328 | $ | 2,672,400 | 6.9 | % | 6.6 | % | ||||||||||||||||||||||||||||
2020 projected deliveries: marketing and pre-construction projects | |||||||||||||||||||||||||||||||||||||
1165 Eastlake Avenue East/Seattle/Lake Union | 100 | % | — | 31,115 | |||||||||||||||||||||||||||||||||
8 Davis Drive/Research Triangle/Research Triangle | 100 | % | — | 2,880 | |||||||||||||||||||||||||||||||||
Alexandria Center® for AgTech, Phase II/Research Triangle/Research Triangle(1) | 100 | % | — | 2,774 | |||||||||||||||||||||||||||||||||
3115 Merryfield Row/San Diego/Torrey Pines | 100 | % | — | 31,196 | |||||||||||||||||||||||||||||||||
2020 projected deliveries | — | 475,892 | |||||||||||||||||||||||||||||||||||
Total | $ | 589,220 | $ | 997,388 |
(1) | New strategic collaborative campus, Alexandria Center® for AgTech – Research Triangle consists of Phase I at 5 Laboratory Drive, including campus amenities, and |
Refer to |
![]() | ![]() | ![]() | ![]() | ![]() |
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Market | Property/Submarket | Book Value | Project SF | Per SF | ||||||||||||
Greater Boston | 325 Binney Street/Cambridge (1) | $ | 85,518 | 208,965 | $ | 409 | ||||||||||
50 Rogers Street/Cambridge | 6,426 | 183,644 | (2) | 35 | ||||||||||||
San Francisco | 960 Industrial Road/Greater Stanford | 67,902 | 500,000 | (3) | 136 | |||||||||||
825 and 835 Industrial Road/Greater Stanford | 90,018 | 530,000 | 170 | |||||||||||||
201 Haskins Way/South San Francisco | 33,950 | 280,000 | (4) | 121 | ||||||||||||
New York City | Alexandria Center® for Life Science/Manhattan | — | 420,000 | — | ||||||||||||
San Diego | 5200 Illumina Way/University Town Center | 11,239 | 386,044 | 29 | ||||||||||||
Campus Point Drive/University Town Center | 13,395 | 315,000 | 43 | |||||||||||||
Seattle | 1150 Eastlake Avenue East/Lake Union | 18,922 | 260,000 | 73 | ||||||||||||
Maryland | 9800 Medical Center Drive/Rockville | 6,500 | 180,000 | 36 | ||||||||||||
Total | $ | 333,870 | 3,263,653 | $ | 102 |
Property/Submarket | Our Ownership Interest | Book Value | Square Footage | ||||||||||||||||||||||||||
Undergoing Construction | Near-Term Projects Undergoing Marketing and Pre-Construction | Intermediate-Term Development | Future Development | Total (1) | |||||||||||||||||||||||||
Greater Boston | |||||||||||||||||||||||||||||
Undergoing construction | |||||||||||||||||||||||||||||
100 Binney Street/Cambridge | 100% | $ | 70,143 | 91,155 | — | — | — | 91,155 | |||||||||||||||||||||
266 and 275 Second Avenue/Route 128 | 100% | 9,646 | 59,173 | — | — | — | 59,173 | ||||||||||||||||||||||
Near-term projects undergoing marketing and pre-construction | |||||||||||||||||||||||||||||
399 Binney (Alexandria Center® at One Kendall Square) | 100% | 76,263 | — | 164,000 | — | — | 164,000 | ||||||||||||||||||||||
Intermediate-term development | |||||||||||||||||||||||||||||
325 Binney Street/Cambridge | 100% | 85,518 | — | — | 208,965 | — | 208,965 | ||||||||||||||||||||||
50 Rogers Street/Cambridge | 100% | 6,426 | — | — | 183,644 | — | 183,644 | ||||||||||||||||||||||
Future development projects | |||||||||||||||||||||||||||||
Alexandria Technology Square®/Cambridge | 100% | 7,787 | — | — | — | 100,000 | 100,000 | ||||||||||||||||||||||
Other future projects | 100% | 7,315 | — | — | — | 221,955 | 221,955 | ||||||||||||||||||||||
$ | 263,098 | 150,328 | 164,000 | 392,609 | 321,955 | 1,028,892 | |||||||||||||||||||||||
San Francisco | |||||||||||||||||||||||||||||
Undergoing construction | |||||||||||||||||||||||||||||
510 Townsend Street/Mission Bay/SoMa | 100% | $ | 187,133 | 300,000 | — | — | — | 300,000 | |||||||||||||||||||||
505 Brannan Street, Phase I/Mission Bay/SoMa | 99.7% | 116,522 | 150,000 | — | — | — | 150,000 | ||||||||||||||||||||||
213 East Grand Avenue/South San Francisco | 100% | 72,895 | 300,930 | — | — | — | 300,930 | ||||||||||||||||||||||
Near-term projects undergoing marketing and pre-construction | |||||||||||||||||||||||||||||
1655 and 1715 Third Street/Mission Bay/SoMa | 10% | — | — | 580,000 | — | — | 580,000 | ||||||||||||||||||||||
279 East Grand Avenue/South San Francisco | 100% | 17,998 | — | 199,000 | — | — | 199,000 | ||||||||||||||||||||||
Intermediate-term development | |||||||||||||||||||||||||||||
960 Industrial Road/Greater Stanford | 100% | 67,902 | — | — | 500,000 | (2) | — | 500,000 | |||||||||||||||||||||
825 and 835 Industrial Road/Greater Stanford | 100% | 90,018 | — | — | 530,000 | — | 530,000 | ||||||||||||||||||||||
201 Haskins Way/South San Francisco | 100% | 33,950 | — | — | 280,000 | (3) | — | 280,000 | |||||||||||||||||||||
Future development projects | |||||||||||||||||||||||||||||
88 Bluxome Street/Mission Bay/SoMa | 100% | 160,901 | — | — | — | 1,070,925 | (4) | 1,070,925 | |||||||||||||||||||||
505 Brannan Street, Phase II/Mission Bay/SoMa | 99.7% | 14,988 | — | — | — | 165,000 | 165,000 | ||||||||||||||||||||||
East Grand Avenue/South San Francisco | 100% | 5,988 | — | — | — | 90,000 | 90,000 | ||||||||||||||||||||||
Other future projects | 100% | — | — | — | — | 95,620 | 95,620 | ||||||||||||||||||||||
$ | 768,295 | 750,930 | 779,000 | 1,310,000 | 1,421,545 | 4,261,475 | |||||||||||||||||||||||
New York City | |||||||||||||||||||||||||||||
Alexandria Center® for Life Science/Manhattan | 100% | $ | — | — | — | 420,000 | — | 420,000 | |||||||||||||||||||||
$ | — | — | — | 420,000 | — | 420,000 | |||||||||||||||||||||||
(1) Total pipeline SF represents operating RSF plus incremental SF targeted for intermediate-term and future development. (2) The intermediate-term development project undergoing entitlements for 500,000 RSF will replace the existing 195,000 RSF of operating property. (3) The intermediate-term development project undergoing entitlements for 280,000 RSF will replace the existing 23,840 RSF of operating property. (4) The future development project undergoing entitlements for 1,070,925 developable square feet will replace the existing 232,470 RSF operating property. |
Property/Submarket | Our Ownership Interest | Book Value | Square Footage | |||||||||||||||||||||||||||
Projected Deliveries(1) | Future | Total | ||||||||||||||||||||||||||||
2019 | 2020 | 2021–2022 | ||||||||||||||||||||||||||||
Construction | Construction | Pre-Construction | Pre-Construction | Intermediate-Term | ||||||||||||||||||||||||||
Greater Boston | ||||||||||||||||||||||||||||||
399 Binney (Alexandria Center® at One Kendall Square)/Cambridge | 100 | % | $ | 42,258 | 40,597 | — | — | — | — | — | 40,597 | |||||||||||||||||||
266 and 275 Second Avenue/Route 128 | 100 | % | 6,712 | 19,036 | — | — | — | — | — | 19,036 | ||||||||||||||||||||
325 Binney Street/Cambridge | 100 | % | 104,421 | — | — | — | — | 208,965 | (2) | — | 208,965 | |||||||||||||||||||
15 Necco Street/Seaport Innovation District | 100 | % | 159,242 | — | — | — | — | 293,000 | — | 293,000 | ||||||||||||||||||||
99 A Street/Seaport Innovation District | 96.9 | % | 38,681 | — | — | — | — | 235,000 | (3) | — | 235,000 | |||||||||||||||||||
Alexandria Technology Square®/Cambridge | 100 | % | 7,787 | — | — | — | — | — | 100,000 | 100,000 | ||||||||||||||||||||
100 Tech Drive/Route 128 | 100 | % | — | — | — | — | — | — | 300,000 | 300,000 | ||||||||||||||||||||
215 Presidential Way/Route 128 | 100 | % | 5,481 | — | — | — | — | — | 130,000 | 130,000 | ||||||||||||||||||||
231 Second Avenue/Route 128 | 100 | % | 1,251 | — | — | — | — | — | 32,000 | 32,000 | ||||||||||||||||||||
10 Necco Street/Seaport Innovation District | 100 | % | 83,425 | — | — | — | — | — | 175,000 | 175,000 | ||||||||||||||||||||
Other value-creation projects | 100 | % | 8,592 | — | — | — | — | — | 41,955 | 41,955 | ||||||||||||||||||||
457,850 | 59,633 | — | — | — | 736,965 | 778,955 | 1,575,553 | |||||||||||||||||||||||
San Francisco | ||||||||||||||||||||||||||||||
1655 and 1725 Third Street/Mission Bay/SoMa | 10.0 | % | (4) | 593,765 | — | — | — | — | — | 593,765 | ||||||||||||||||||||
279 East Grand Avenue/South San Francisco | 100 | % | 42,369 | 47,199 | — | — | — | — | — | 47,199 | ||||||||||||||||||||
Menlo Gateway/Greater Stanford | 48.3 | % | (4) | 520,988 | — | — | — | — | — | 520,988 | ||||||||||||||||||||
201 Haskins Way/South San Francisco | 100 | % | 91,459 | — | 315,000 | — | — | — | — | 315,000 | ||||||||||||||||||||
Alexandria District for Science and Technology/ Greater Stanford | 100 | % | 188,255 | — | 526,178 | — | — | — | — | 526,178 | ||||||||||||||||||||
Pending acquisition/San Francisco Bay Area | (5 | ) | (5) | — | — | 250,000 | — | — | — | 250,000 | ||||||||||||||||||||
Pending acquisition/San Francisco Bay Area | (5 | ) | (5) | — | — | 92,000 | — | — | — | 92,000 | ||||||||||||||||||||
88 Bluxome Street/Mission Bay/SoMa | 100 | % | 182,805 | — | — | — | 1,070,925 | (3) | — | — | 1,070,925 | |||||||||||||||||||
505 Brannan Street, Phase II/Mission Bay/SoMa | 99.7 | % | 17,038 | — | — | — | — | 165,000 | — | 165,000 | ||||||||||||||||||||
960 Industrial Road/Greater Stanford | 100 | % | 86,402 | — | — | — | — | 533,000 | (3) | — | 533,000 | |||||||||||||||||||
East Grand Avenue/South San Francisco | 100 | % | 6,008 | — | — | — | — | — | 90,000 | 90,000 | ||||||||||||||||||||
Pending acquisition/San Francisco Bay Area | (5 | ) | (5) | — | — | — | — | — | 700,000 | 700,000 | ||||||||||||||||||||
Other value-creation projects | 100 | % | 45,237 | — | — | — | — | 418,000 | 25,000 | 443,000 | ||||||||||||||||||||
$ | 659,573 | 1,161,952 | 841,178 | 342,000 | 1,070,925 | 1,116,000 | 815,000 | 5,347,055 | ||||||||||||||||||||||
(1) Represents square footage of development and redevelopment projects by period of projected initial occupancy. Multi-tenant projects may have occupancy by tenants over a period of time. (2) We are seeking additional entitlements to increase the density of the site from its current 208,965 RSF. (3) Represents total square footage upon completion of development of a new Class A property. RSF presented includes rentable square footage of buildings currently in operation at properties that were recently acquired for their inherent future development opportunities, with the intent to demolish the existing property upon expiration of the existing in-place leases and commencement of future construction. Refer to the definition of “Investments in Real Estate – Value-Creation Square Feet Currently in Rental Properties” in the “Non-GAAP Measures and Definitions” section within this Item 2 for additional information. (4) This property is held by an unconsolidated real estate joint venture. Refer to the “Consolidated and Unconsolidated Real Estate Joint Ventures” section within this Item 2 for additional information on our ownership interest. (5) Refer to the “Acquisitions” section within this Item 2 for additional information. |
Property/Submarket | Our Ownership Interest | Book Value | Square Footage | ||||||||||||||||||||||||||
Undergoing Construction | Near-Term Projects Undergoing Marketing and Pre-Construction | Intermediate-Term Development | Future Development | Total (1) | |||||||||||||||||||||||||
San Diego | |||||||||||||||||||||||||||||
Undergoing construction | |||||||||||||||||||||||||||||
ARE Spectrum/Torrey Pines | 100% | $ | 143,149 | 170,523 | — | — | — | 170,523 | |||||||||||||||||||||
9625 Towne Centre Drive/University Town Center | 100% | 31,880 | 163,648 | — | — | — | 163,648 | ||||||||||||||||||||||
Intermediate-term development | |||||||||||||||||||||||||||||
5200 Illumina Way/University Town Center | 100% | 11,239 | — | — | 386,044 | — | 386,044 | ||||||||||||||||||||||
Campus Point Drive/University Town Center | 100% | 13,395 | — | — | 315,000 | — | 315,000 | ||||||||||||||||||||||
Future development projects | |||||||||||||||||||||||||||||
Vista Wateridge/Sorrento Mesa | 100% | 3,909 | — | — | — | 163,000 | 163,000 | ||||||||||||||||||||||
Other future projects | 100% | 33,147 | — | — | — | 259,895 | 259,895 | ||||||||||||||||||||||
$ | 236,719 | 334,171 | — | 701,044 | 422,895 | 1,458,110 | |||||||||||||||||||||||
Seattle | |||||||||||||||||||||||||||||
Undergoing construction | |||||||||||||||||||||||||||||
400 Dexter Avenue North/Lake Union | 100% | $ | 19,243 | 31,215 | — | — | — | 31,215 | |||||||||||||||||||||
Near-term projects undergoing marketing and pre-construction | |||||||||||||||||||||||||||||
1818 Fairview Avenue East/Lake Union | 100% | 20,693 | — | 205,000 | — | — | 205,000 | ||||||||||||||||||||||
Intermediate-term development | |||||||||||||||||||||||||||||
1150 Eastlake Avenue East/Lake Union | 100% | 18,922 | — | — | 260,000 | — | 260,000 | ||||||||||||||||||||||
Future development projects | |||||||||||||||||||||||||||||
1165/1166 Eastlake Avenue East/Lake Union | 100% | 18,631 | — | — | — | — | 106,000 | 106,000 | |||||||||||||||||||||
$ | 77,489 | 31,215 | 205,000 | 260,000 | 106,000 | 602,215 | |||||||||||||||||||||||
Maryland | |||||||||||||||||||||||||||||
Undergoing construction | |||||||||||||||||||||||||||||
9900 Medical Center Drive/Rockville | 100% | $ | 7,237 | 45,039 | — | — | — | 45,039 | |||||||||||||||||||||
Intermediate-term development | |||||||||||||||||||||||||||||
9800 Medical Center Drive/Rockville | 100% | 6,500 | — | — | 180,000 | — | 180,000 | ||||||||||||||||||||||
Future development projects | |||||||||||||||||||||||||||||
Other future projects | 100% | 4,035 | — | — | — | 61,000 | 61,000 | ||||||||||||||||||||||
$ | 17,772 | 45,039 | — | 180,000 | 61,000 | 286,039 | |||||||||||||||||||||||
Research Triangle Park | |||||||||||||||||||||||||||||
Undergoing construction | |||||||||||||||||||||||||||||
5 Laboratory Drive/Research Triangle Park | 100% | $ | 10,461 | 175,000 | — | — | — | 175,000 | |||||||||||||||||||||
Future development projects | |||||||||||||||||||||||||||||
6 Davis Drive/Research Triangle Park | 100% | 16,673 | — | — | — | 1,000,000 | 1,000,000 | ||||||||||||||||||||||
Other future projects | 100% | 4,149 | — | — | — | 76,262 | 76,262 | ||||||||||||||||||||||
$ | 31,283 | 175,000 | — | — | 1,076,262 | 1,251,262 | |||||||||||||||||||||||
Non-cluster markets – other future projects | 100% | 11,791 | — | — | — | 571,705 | 571,705 | ||||||||||||||||||||||
$ | 1,406,447 | 1,486,683 | 1,148,000 | 3,263,653 | 3,981,362 | 9,879,698 |
Property/Submarket | Our Ownership Interest | Book Value | Square Footage | |||||||||||||||||||||||||||
Projected Deliveries(1) | Future | Total | ||||||||||||||||||||||||||||
2019 | 2020 | 2021–2022 | ||||||||||||||||||||||||||||
Construction | Construction | Pre-Construction | Pre-Construction | Intermediate-Term | ||||||||||||||||||||||||||
New York City | ||||||||||||||||||||||||||||||
Alexandria Center® – Long Island City/New York City | 100 | % | $ | 67,832 | 140,098 | — | — | — | — | — | 140,098 | |||||||||||||||||||
Alexandria Center® for Life Science – New York City/New York City | 100 | % | 19,159 | — | — | — | — | 550,000 | — | 550,000 | ||||||||||||||||||||
219 East 42nd Street/New York City | 100 | % | — | — | — | — | — | — | 579,947 | (2) | 579,947 | |||||||||||||||||||
Other value-creation projects | (3 | ) | (3) | — | — | — | — | — | 135,938 | 135,938 | ||||||||||||||||||||
86,991 | 140,098 | — | — | — | 550,000 | 715,885 | 1,405,983 | |||||||||||||||||||||||
San Diego | ||||||||||||||||||||||||||||||
Campus Pointe by Alexandria/University Town Center | (4 | ) | 140,263 | — | 98,000 | 171,102 | — | 120,000 | 410,345 | (4) | 799,447 | |||||||||||||||||||
3115 Merryfield Row/Torrey Pines | 100 | % | 31,196 | — | — | 87,000 | — | — | — | 87,000 | ||||||||||||||||||||
5200 Illumina Way/University Town Center | 100 | % | 11,734 | — | — | — | — | 451,832 | — | 451,832 | ||||||||||||||||||||
Townsgate by Alexandria/Del Mar Heights | 100 | % | 18,749 | — | — | — | — | 125,000 | — | 125,000 | ||||||||||||||||||||
4075 Sorrento Valley Boulevard/Sorrento Valley | 100 | % | 7,545 | — | — | — | — | — | 149,000 | (5) | 149,000 | |||||||||||||||||||
Vista Wateridge/Sorrento Mesa | 100 | % | 4,022 | — | — | — | — | — | 163,000 | 163,000 | ||||||||||||||||||||
Pending acquisition/San Diego | (3 | ) | (3) | — | — | — | — | — | 700,000 | 700,000 | ||||||||||||||||||||
Other value-creation projects | 100 | % | 5,931 | — | — | — | — | — | 222,895 | 222,895 | ||||||||||||||||||||
219,440 | — | 98,000 | 258,102 | — | 696,832 | 1,645,240 | 2,698,174 | |||||||||||||||||||||||
Seattle | ||||||||||||||||||||||||||||||
188 East Blaine Street/Lake Union | 100 | % | 51,957 | 80,221 | — | — | — | — | — | 80,221 | ||||||||||||||||||||
1165 Eastlake Avenue East/Lake Union | 100 | % | 31,115 | — | — | 100,086 | — | — | — | 100,086 | ||||||||||||||||||||
1150 Eastlake Avenue East/Lake Union | 100 | % | 27,810 | — | — | — | — | 260,000 | — | 260,000 | ||||||||||||||||||||
701 Dexter Avenue North/Lake Union | 100 | % | 39,577 | — | — | — | — | 217,000 | — | 217,000 | ||||||||||||||||||||
601 Dexter Avenue/Lake Union | 100 | % | 29,837 | — | — | — | — | — | 188,400 | (5) | 188,400 | |||||||||||||||||||
$ | 180,296 | 80,221 | — | 100,086 | — | 477,000 | 188,400 | 845,707 | ||||||||||||||||||||||
(1) Represents square footage of development and redevelopment projects by period of projected initial occupancy. Multi-tenant projects may have occupancy by tenants over a period of time. (2) Includes 349,947 RSF in operation with an opportunity to either convert the existing office space into office/laboratory space through future redevelopment or to expand the building by an additional 230,000 RSF through ground-up development. The building is currently occupied by Pfizer Inc. with a remaining lease term of six years. (3) Refer to the “Acquisitions” section within this Item 2 for additional information. (4) RSF consists of our acquisition of 4161 Campus Point Court during the first quarter of 2019 aggregating 159,884 RSF and 10260 Campus Point Drive aggregating 109,164 RSF. Both of these buildings are currently operating under short-term leases. Upon lease expirations, we expect to demolish 4161 Campus Point Court and combine its RSF with other existing entitlements at this campus to complete a new ground-up development aggregating 301,181 RSF. We also expect to convert 10260 Campus Point Drive to office/laboratory space through redevelopment. Refer to “Consolidated and Unconsolidated Real Estate Joint Ventures” within this Item 2 for additional information on our ownership interest. (5) Represents total square footage upon completion of development of a new Class A property. RSF presented includes rentable square footage of buildings currently in operation at properties that were recently acquired for their inherent future development opportunities, with the intent to demolish the existing property upon expiration of the existing in-place leases and commencement of future construction. Refer to the definition of “Investments in Real Estate – Value-Creation Square Feet Currently in Rental Properties” in the “Non-GAAP Measures and Definitions” section within this Item 2 for additional information. |
Property/Submarket | Our Ownership Interest | Book Value | Square Footage | |||||||||||||||||||||||||||
Projected Deliveries(1) | Future | Total | ||||||||||||||||||||||||||||
2019 | 2020 | 2021–2022 | ||||||||||||||||||||||||||||
Construction | Construction | Pre-Construction | Pre-Construction | Intermediate-Term | ||||||||||||||||||||||||||
Maryland | ||||||||||||||||||||||||||||||
704 Quince Orchard Road/Gaithersburg | 56.8 | % | (2) | 41,627 | — | — | — | — | — | 41,627 | ||||||||||||||||||||
9800 Medical Center Drive/Rockville | 100 | % | $ | 21,212 | — | 174,640 | — | — | — | 64,000 | 238,640 | |||||||||||||||||||
9950 Medical Center Drive/Rockville | 100 | % | 9,753 | — | 84,264 | — | — | — | — | 84,264 | ||||||||||||||||||||
30,965 | 41,627 | 258,904 | — | — | — | 64,000 | 364,531 | |||||||||||||||||||||||
Research Triangle | ||||||||||||||||||||||||||||||
Alexandria Center® for AgTech, Phase I/ Research Triangle | 100 | % | 18,383 | 45,054 | — | — | — | — | — | 45,054 | ||||||||||||||||||||
Alexandria Center® for AgTech, Phase II/ Research Triangle | 100 | % | 2,774 | — | — | 160,000 | — | — | — | 160,000 | ||||||||||||||||||||
8 Davis Drive/Research Triangle | 100 | % | 3,594 | — | — | 150,000 | — | 70,000 | — | 220,000 | ||||||||||||||||||||
6 Davis Drive/Research Triangle | 100 | % | 15,499 | — | — | — | — | — | 800,000 | 800,000 | ||||||||||||||||||||
Other value-creation projects | 100 | % | 4,149 | — | — | — | — | — | 76,262 | 76,262 | ||||||||||||||||||||
44,399 | 45,054 | — | 310,000 | — | 70,000 | 876,262 | 1,301,316 | |||||||||||||||||||||||
Other value-creation projects | 100 | % | 3,840 | — | — | — | — | — | 122,800 | 122,800 | ||||||||||||||||||||
$ | 1,683,354 | 1,528,585 | 1,198,082 | 1,010,188 | 1,070,925 | 3,646,797 | 5,206,542 | 13,661,119 | (3) | |||||||||||||||||||||
2,726,667 | 2,081,113 | 8,853,339 |
(1) | Represents square footage of development and redevelopment projects by period of projected initial occupancy. Multi-tenant projects may have occupancy by tenants over a period of time. |
(2) | This property is held by an unconsolidated real estate joint venture. Refer to the “Consolidated and Unconsolidated Real Estate Joint Ventures” section within this Item 2 for additional information on our ownership interest. |
(3) | Total |
Nine Months Ended | Six Months Ended | |||||||||
Construction Spending | September 30, 2017 | June 30, 2019 | ||||||||
Additions to real estate – consolidated projects | $ | 660,877 | $ | 577,322 | ||||||
Investments in unconsolidated real estate joint ventures | 248 | 95,950 | ||||||||
Contributions from noncontrolling interests | (5,523 | ) | ||||||||
Construction spending (cash basis) (1) | 661,125 | 667,749 | ||||||||
Decrease in accrued construction | (38,767 | ) | ||||||||
Construction spending | $ | 622,358 | ||||||||
Change in accrued construction | 5,558 | |||||||||
Construction spending for the six months ended June 30, 2019 | 673,307 | |||||||||
Projected construction spending for the six months ending December 31, 2019 | 626,693 | |||||||||
Guidance midpoint | $ | 1,300,000 |
(1) | Includes revenue-enhancing projects and non-revenue-enhancing capital expenditures. |
Projected Construction Spending | Year Ending December 31, 2019 | ||||||
Development, redevelopment, and pre-construction projects | $ | 1,041,000 | |||||
Investments in unconsolidated real estate joint ventures | 102,000 | ||||||
Contributions from noncontrolling interests (consolidated real estate joint ventures) | (22,000 | ) | |||||
Generic laboratory infrastructure/building improvement projects | 150,000 | ||||||
Non-revenue-enhancing capital expenditures and tenant improvements | 29,000 | ||||||
Guidance midpoint | $ | 1,300,000 |
Projected Construction Spending | Year Ending December 31, 2017 | |||||||||
Development and redevelopment projects | $ | 203,000 | ||||||||
Contributions from noncontrolling interests (consolidated joint ventures) | (7,000 | ) | ||||||||
Generic laboratory infrastructure/building improvement projects | 41,000 | |||||||||
Non-revenue-enhancing capital expenditures and tenant improvements | 6,000 | |||||||||
Projected construction spending for three months ending December 31, 2017 | 243,000 | |||||||||
Actual construction spending for the nine months ended September 30, 2017 | 622,358 | |||||||||
Guidance range | $ | 815,000 | – | 915,000 |
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Non-Revenue-Enhancing Capital Expenditures(1) | Six Months Ended June 30, 2019 | Recent Average per RSF(2) | ||||||||||||
Amount | Per RSF | |||||||||||||
Non-revenue-enhancing capital expenditures | $ | 5,257 | $ | 0.23 | $ | 0.50 | ||||||||
Tenant improvements and leasing costs: | ||||||||||||||
Re-tenanted space | $ | 14,425 | $ | 26.59 | $ | 22.26 | ||||||||
Renewal space | 8,185 | 14.75 | 13.74 | |||||||||||
Total tenant improvements and leasing costs/weighted average | $ | 22,610 | $ | 20.60 | $ | 17.15 |
Non-Revenue-Enhancing Capital Expenditures (1) | Nine Months Ended September 30, 2017 | Recent Average per RSF (2) | |||||||||||||
Amount | RSF | Per RSF | |||||||||||||
Non-revenue-enhancing capital expenditures | $ | 5,431 | 18,576,742 | $ | 0.29 | $ | 0.41 | ||||||||
Tenant improvements and leasing costs: | |||||||||||||||
Re-tenanted space | $ | 15,542 | 596,653 | $ | 26.05 | $ | 18.11 | ||||||||
Renewal space | 22,200 | 1,334,824 | 16.63 | 10.14 | |||||||||||
Total tenant improvements and leasing costs/weighted average | $ | 37,742 | 1,931,477 | $ | 19.54 | (3) | $ | 12.52 |
(1) | Excludes amounts that are recoverable from tenants, related to revenue-enhancing capital expenditures, or related to properties that have undergone redevelopment. |
(2) | Represents the average of |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||||||||
(In millions, except per share amounts) | Amount | Per Share – Diluted | Amount | Per Share – Diluted | |||||||||||||||||||||||||||
Gain on sales of real estate (1) | $ | 14.1 | $ | 0.1 | $ | 0.15 | $ | — | $ | 14.5 | $ | 0.1 | $ | 0.15 | $ | — | |||||||||||||||
Gain on sales of non-real estate investments | — | — | — | — | — | 4.4 | — | 0.06 | |||||||||||||||||||||||
Impairment of: | �� | ||||||||||||||||||||||||||||||
Rental properties (2) | — | (6.3 | ) | — | (0.08 | ) | (0.2 | ) | (94.7 | ) | — | (1.27 | ) | ||||||||||||||||||
Land parcels (2) | — | (1.8 | ) | — | (0.02 | ) | — | (98.0 | ) | — | (1.32 | ) | |||||||||||||||||||
Non-real estate investments (3) | — | (3.1 | ) | — | (0.04 | ) | (4.5 | ) | (3.1 | ) | (0.05 | ) | (0.04 | ) | |||||||||||||||||
Loss on early extinguishment of debt | — | (3.2 | ) | — | (0.04 | ) | (0.7 | ) | (3.2 | ) | (0.01 | ) | (0.04 | ) | |||||||||||||||||
Preferred stock redemption charge (4) | — | (13.1 | ) | — | (0.17 | ) | (11.3 | ) | (25.6 | ) | (0.12 | ) | (0.34 | ) | |||||||||||||||||
$ | 14.1 | $ | (27.4 | ) | $ | 0.15 | $ | (0.35 | ) | $ | (2.2 | ) | $ | (220.1 | ) | $ | (0.03 | ) | $ | (2.95 | ) | ||||||||||
Weighted-average shares of common stock outstanding – diluted | 93.3 | 77.4 | 90.8 | 74.5 |
Amount | Per Share – Diluted | Amount | Per Share – Diluted | ||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||
(In millions, except per share amounts) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Unrealized gains on non-real estate investments(1) | $ | 11.1 | $ | 5.1 | $ | 0.10 | $ | 0.05 | $ | 83.3 | $ | 77.3 | $ | 0.75 | $ | 0.76 | |||||||||||||||
Realized gain on non-real estate investment | — | — | — | — | — | 8.3 | — | 0.08 | |||||||||||||||||||||||
Impairment of real estate | — | (6.3 | ) | — | (0.06 | ) | — | (6.3 | ) | — | (0.06 | ) | |||||||||||||||||||
Loss on early extinguishment of debt(2) | — | — | — | — | (7.4 | ) | — | (0.07 | ) | — | |||||||||||||||||||||
Preferred stock redemption charge(3) | — | — | — | — | (2.6 | ) | — | (0.02 | ) | — | |||||||||||||||||||||
Total | $ | 11.1 | $ | (1.2 | ) | $ | 0.10 | $ | (0.01 | ) | $ | 73.3 | $ | 79.3 | $ | 0.66 | $ | 0.78 | |||||||||||||
Weighted-average shares of common stock outstanding for calculation of EPS – diluted | 111.5 | 102.2 | 111.3 | 101.2 |
(1) | Refer to Note |
(2) | Refer to Note |
(3) | Refer to Note |
September 30, 2017 | June 30, 2019 | |||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | |||||||||||
Percentage change in net operating income over comparable period from prior year | 2.2% | 2.3% | 4.3% | 3.5% | ||||||||||
Percentage change in net operating income (cash basis) over comparable period from prior year | 7.8% | 6.2% | 9.5% | 9.7% | ||||||||||
Operating margin | 69% | 70% | 72% | 72% | ||||||||||
Number of Same Properties | 169 | 166 | 200 | 195 | ||||||||||
RSF | 15,182,829 | 14,419,701 | 19,650,971 | 18,901,509 | ||||||||||
Occupancy – current-period average | 95.9% | 96.0% | 96.6% | 96.5% | ||||||||||
Occupancy – same-period prior-year average | 96.9% | 97.2% | 96.2% | 96.3% |
Development – under construction | Properties | |||
1 | ||||
1 | ||||
1 | ||||
1 | ||||
9950 Medical Center Drive | 1 | |||
Alexandria District for Science and Technology | 2 | |||
201 Haskins Way | 1 | |||
8 | ||||
Development – placed into service after January 1, | Properties | |||
1 | ||||
Redevelopment – under construction | Properties | |||
Alexandria Center® for AgTech, Phase I | 1 | |||
266 and 275 Second Avenue | 2 | |||
Alexandria Center® – Long Island City | 1 | |||
4 | ||||
Redevelopment – placed into service after January 1, 2018 | Properties | |||
9625 Towne Centre Drive | 1 | |||
4 | ||||
681 Gateway Boulevard | 1 | |||
9900 Medical Center Drive | 1 | |||
Acquisitions after January 1, | Properties | |||
1 | ||||
219 East 42nd Street | 1 | |||
Summers Ridge Science Park | 4 | |||
2301 5th Avenue | 1 | |||
9704, 9708, 9712, and 9714 Medical Center Drive | 4 | |||
9920 Belward Campus Drive | 1 | |||
21 Firstfield Road | 1 | |||
50 and 55 West Watkins Mill Road | 2 | |||
10260 Campus Point Drive and 4161 Campus Point Court | 2 | |||
99 A Street | 1 | |||
3170 Porter Drive | 1 | |||
Shoreway Science Center | ||||
1 | ||||
1 | ||||
1 | ||||
Unconsolidated real estate JVs | 6 | |||
Properties held for sale | 2 | |||
Total properties excluded from Same Properties | ||||
Same Properties | (1) | |||
Total properties in North America as of June 30, | ||||
(1) | Includes 9880 Campus Point Drive, a building we acquired in 2001. The building was occupied through January 2018 and subsequently demolished. The 98,000 RSF project is currently in active development. |
Three Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||||||||||
Income from rentals: | ||||||||||||||||||||||||||||||||
Same Properties | $ | 163,817 | $ | 159,424 | $ | 4,393 | 2.8 | % | $ | 245,715 | $ | 235,576 | $ | 10,139 | 4.3 | % | ||||||||||||||||
Non-Same Properties | 52,204 | 7,167 | 45,037 | 628.4 | 43,910 | 15,059 | 28,851 | 191.6 | ||||||||||||||||||||||||
Total rental | 216,021 | 166,591 | 49,430 | 29.7 | ||||||||||||||||||||||||||||
Rental revenues | 289,625 | 250,635 | 38,990 | 15.6 | ||||||||||||||||||||||||||||
Same Properties | 58,117 | 56,858 | 1,259 | 2.2 | 75,783 | 69,693 | 6,090 | 8.7 | ||||||||||||||||||||||||
Non-Same Properties | 8,941 | 1,823 | 7,118 | 390.5 | 6,210 | 2,466 | 3,744 | 151.8 | ||||||||||||||||||||||||
Total tenant recoveries | 67,058 | 58,681 | 8,377 | 14.3 | ||||||||||||||||||||||||||||
Tenant recoveries | 81,993 | 72,159 | 9,834 | 13.6 | ||||||||||||||||||||||||||||
Income from rentals | 371,618 | 322,794 | 48,824 | 15.1 | ||||||||||||||||||||||||||||
Same Properties | 120 | 16 | 104 | 650.0 | 93 | 72 | 21 | 29.2 | ||||||||||||||||||||||||
Non-Same Properties | 2,171 | 5,091 | (2,920 | ) | (57.4 | ) | 2,145 | 2,168 | (23 | ) | (1.1 | ) | ||||||||||||||||||||
Total other income | 2,291 | 5,107 | (2,816 | ) | (55.1 | ) | ||||||||||||||||||||||||||
Other income | 2,238 | 2,240 | (2 | ) | (0.1 | ) | ||||||||||||||||||||||||||
Same Properties | 222,054 | 216,298 | 5,756 | 2.7 | 321,591 | 305,341 | 16,250 | 5.3 | ||||||||||||||||||||||||
Non-Same Properties | 63,316 | 14,081 | 49,235 | 349.7 | 52,265 | 19,693 | 32,572 | 165.4 | ||||||||||||||||||||||||
Total revenues | 285,370 | 230,379 | 54,991 | 23.9 | 373,856 | 325,034 | 48,822 | 15.0 | ||||||||||||||||||||||||
Same Properties | 68,107 | 65,674 | 2,433 | 3.7 | 88,958 | 82,277 | 6,681 | 8.1 | ||||||||||||||||||||||||
Non-Same Properties | 15,362 | 6,328 | 9,034 | 142.8 | 16,731 | 9,631 | 7,100 | 73.7 | ||||||||||||||||||||||||
Total rental operations | 83,469 | 72,002 | 11,467 | 15.9 | ||||||||||||||||||||||||||||
Rental operations | 105,689 | 91,908 | 13,781 | 15.0 | ||||||||||||||||||||||||||||
Same Properties | 153,947 | 150,624 | 3,323 | 2.2 | 232,633 | 223,064 | 9,569 | 4.3 | ||||||||||||||||||||||||
Non-Same Properties | 47,954 | 7,753 | 40,201 | 518.5 | 35,534 | 10,062 | 25,472 | 253.2 | ||||||||||||||||||||||||
Net operating income | $ | 201,901 | $ | 158,377 | $ | 43,524 | 27.5 | % | $ | 268,167 | $ | 233,126 | $ | 35,041 | 15.0 | % | ||||||||||||||||
Net operating income – Same Properties | $ | 153,947 | $ | 150,624 | $ | 3,323 | 2.2 | % | $ | 232,633 | $ | 223,064 | $ | 9,569 | 4.3 | % | ||||||||||||||||
Straight-line rent revenue and amortization of acquired below-market leases | (5,744 | ) | (13,105 | ) | 7,361 | (56.2 | ) | |||||||||||||||||||||||||
Straight-line rent revenue | (14,664 | ) | (23,294 | ) | 8,630 | (37.0 | ) | |||||||||||||||||||||||||
Amortization of acquired below-market leases | (2,927 | ) | (3,403 | ) | 476 | (14.0 | ) | |||||||||||||||||||||||||
Net operating income – Same Properties (cash basis) | $ | 148,203 | $ | 137,519 | $ | 10,684 | 7.8 | % | $ | 215,042 | $ | 196,367 | $ | 18,675 | 9.5 | % |
Three Months Ended June 30, | ||||||||||||
Component | 2019 | 2018 | Change | |||||||||
Interest incurred | $ | 64,553 | $ | 53,624 | $ | 10,929 | ||||||
Capitalized interest | (21,674 | ) | (15,527 | ) | (6,147 | ) | ||||||
Interest expense | $ | 42,879 | $ | 38,097 | $ | 4,782 | ||||||
Average debt balance outstanding (1) | $ | 6,129,748 | $ | 5,406,946 | $ | 722,802 | ||||||
Weighted-average annual interest rate (2) | 4.2 | % | 4.0 | % | 0.2 | % |
(1) | Represents the average debt balance outstanding during the respective periods. |
(2) | Represents annualized total interest incurred divided by the average debt balance outstanding in the respective periods. |
Component | Interest Rate(1) | Effective Date | Change | ||||||||
Increases in interest incurred due to: | |||||||||||
Issuances of debt: | |||||||||||
$650 million unsecured senior notes payable – green bonds | 4.03 | % | June 2018/ March 2019 | $ | 5,798 | ||||||
$450 million unsecured senior notes payable | 4.81 | % | June 2018 | 4,707 | |||||||
$300 million unsecured senior notes payable | 4.93 | % | March 2019 | 3,640 | |||||||
$350 million unsecured senior notes payable – green bonds | 3.96 | % | March 2019 | 3,338 | |||||||
Fluctuations in interest rate and average balance: | |||||||||||
Higher rates for interest rate hedge agreements in effect | 1,245 | ||||||||||
Total increases | 18,728 | ||||||||||
Decreases in interest incurred due to: | |||||||||||
Repayments of debt: | |||||||||||
Secured construction loan | 3.29 | % | March 2019 | (2,885 | ) | ||||||
Secured notes payable | 8.15 | % | January 2019 | (2,089 | ) | ||||||
2019 unsecured senior bank term loan | 2.75 | % | September 2018 | (1,585 | ) | ||||||
Fluctuations in interest rate and average balance: | |||||||||||
$2.2 billion unsecured senior line of credit and senior bank term loan | (1,228 | ) | |||||||||
Other decrease in interest | (12 | ) | |||||||||
Total decreases | (7,799 | ) | |||||||||
Change in interest incurred | 10,929 | ||||||||||
Increase in capitalized interest | (6,147 | ) | |||||||||
Total change in interest expense | $ | 4,782 |
(1) | Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to our interest rate hedge agreements, amortization of loan fees, amortization of debt premiums (discounts), and other bank fees. |
Six Months Ended June 30, | ||||||||||||||||
(Dollars in thousands) | 2019 | 2018 | $ Change | % Change | ||||||||||||
Income from rentals: | ||||||||||||||||
Same Properties | $ | 464,450 | $ | 447,953 | $ | 16,497 | 3.7 | % | ||||||||
Non-Same Properties | 99,738 | 47,167 | 52,571 | 111.5 | ||||||||||||
Rental revenues | 564,188 | 495,120 | 69,068 | 13.9 | ||||||||||||
Same Properties | 145,512 | 137,079 | 8,433 | 6.2 | ||||||||||||
Non-Same Properties | 16,667 | 8,250 | 8,417 | 102.0 | ||||||||||||
Tenant recoveries | 162,179 | 145,329 | 16,850 | 11.6 | ||||||||||||
Income from rentals | 726,367 | 640,449 | 85,918 | 13.4 | ||||||||||||
Same Properties | 234 | 134 | 100 | 74.6 | ||||||||||||
Non-Same Properties | 6,097 | 4,590 | 1,507 | 32.8 | ||||||||||||
Other income | 6,331 | 4,724 | 1,607 | 34.0 | ||||||||||||
Same Properties | 610,196 | 585,166 | 25,030 | 4.3 | ||||||||||||
Non-Same Properties | 122,502 | 60,007 | 62,495 | 104.1 | ||||||||||||
Total revenues | 732,698 | 645,173 | 87,525 | 13.6 | ||||||||||||
Same Properties | 172,145 | 162,043 | 10,102 | 6.2 | ||||||||||||
Non-Same Properties | 35,045 | 21,636 | 13,409 | 62.0 | ||||||||||||
Rental operations | 207,190 | 183,679 | 23,511 | 12.8 | ||||||||||||
Same Properties | 438,051 | 423,123 | 14,928 | 3.5 | ||||||||||||
Non-Same Properties | 87,457 | 38,371 | 49,086 | 127.9 | ||||||||||||
Net operating income | $ | 525,508 | $ | 461,494 | $ | 64,014 | 13.9 | % | ||||||||
Net operating income – Same Properties | $ | 438,051 | $ | 423,123 | $ | 14,928 | 3.5 | % | ||||||||
Straight-line rent revenue | (28,935 | ) | (48,429 | ) | 19,494 | (40.3 | ) | |||||||||
Amortization of acquired below-market leases | (5,972 | ) | (7,162 | ) | 1,190 | (16.6 | ) | |||||||||
Net operating income – Same Properties (cash basis) | $ | 403,144 | $ | 367,532 | $ | 35,612 | 9.7 | % |
Three Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Management fee income | $ | 658 | $ | 46 | $ | 612 | ||||||
Interest and other income | 588 | 795 | (207 | ) | ||||||||
Investment income | 1,045 | 4,266 | (3,221 | ) | ||||||||
Total other income | $ | 2,291 | $ | 5,107 | $ | (2,816 | ) |
Three Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||||||||||
Component | 2017 | 2016 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Interest incurred | $ | 48,123 | $ | 40,753 | $ | 7,370 | $ | 122,162 | $ | 103,899 | $ | 18,263 | ||||||||||||
Capitalized interest | (17,092 | ) | (14,903 | ) | (2,189 | ) | (40,183 | ) | (28,887 | ) | (11,296 | ) | ||||||||||||
Interest expense | $ | 31,031 | $ | 25,850 | $ | 5,181 | $ | 81,979 | $ | 75,012 | $ | 6,967 | ||||||||||||
Average debt balance outstanding (1) | $ | 4,887,491 | $ | 4,244,247 | $ | 643,244 | $ | 5,958,590 | $ | 5,251,827 | $ | 706,763 | ||||||||||||
Weighted-average annual interest rate (2) | 3.9 | % | 3.8 | % | 0.1 | % | 4.1 | % | 4.0 | % | 0.1 | % |
(1) | Represents the average debt balance outstanding during the |
(2) | Represents annualized total interest incurred divided by the average debt balance outstanding in the respective periods. |
Component | Interest Rate(1) | Effective Date | Change | Interest Rate(1) | Effective Date | Change | |||||||||||||||
Increases in interest incurred due to: | |||||||||||||||||||||
Issuance of $425 million unsecured senior note payable | 4.09% | March 2017 | $ | 4,210 | |||||||||||||||||
Assumption of $203 million secured note payable | 3.40% | November 2016 | 1,840 | ||||||||||||||||||
Higher average balance and interest rate on secured construction loans | Various | Various | 2,640 | ||||||||||||||||||
Higher average interest rate on unsecured senior line of credit and term loans | 1,880 | ||||||||||||||||||||
Issuances of debt: | |||||||||||||||||||||
$650 million unsecured senior notes payable – green bonds | 4.03 | % | June 2018/ March 2019 | $ | 10,292 | ||||||||||||||||
$450 million unsecured senior notes payable | 4.81 | % | June 2018 | 10,002 | |||||||||||||||||
$300 million unsecured senior notes payable | 4.93 | % | March 2019 | 4,044 | |||||||||||||||||
$350 million unsecured senior notes payable – green bonds | 3.96 | % | March 2019 | 3,709 | |||||||||||||||||
Fluctuations in interest rate and average balance: | |||||||||||||||||||||
$2.2 billion unsecured senior line of credit and senior bank term loan | 1,338 | ||||||||||||||||||||
Total increases | 10,570 | 29,385 | |||||||||||||||||||
Decreases in interest incurred due to: | |||||||||||||||||||||
Repayments of debt: | |||||||||||||||||||||
Variable-rate unsecured senior bank term loan | Various | February 2017 | (750 | ) | |||||||||||||||||
$76 million secured note payable | 2.81% | December 2016 | (460 | ) | |||||||||||||||||
Lower average notional amounts of interest rate hedge agreements in effect | (1,500 | ) | |||||||||||||||||||
Amortization of loan fees | (240 | ) | |||||||||||||||||||
Secured construction loan | 3.29 | % | March 2019 | (3,591 | ) | ||||||||||||||||
Secured notes payable | 8.15 | % | January 2019 | (4,188 | ) | ||||||||||||||||
2019 Unsecured senior bank term loan | 2.75 | % | September 2018 | (2,991 | ) | ||||||||||||||||
Other decrease in interest | (250 | ) | (352 | ) | |||||||||||||||||
Total decreases | (3,200 | ) | (11,122 | ) | |||||||||||||||||
Change in interest incurred | 7,370 | 18,263 | |||||||||||||||||||
Increase in capitalized interest (2) | (2,189 | ) | |||||||||||||||||||
Increase in capitalized interest | (11,296 | ) | |||||||||||||||||||
Total change in interest expense | $ | 5,181 | $ | 6,967 |
(1) | Represents the weighted-average interest rate as of the end of the applicable period, |
Nine Months Ended September 30, | ||||||||||||||||
(Dollars in thousands) | 2017 | 2016 | $ Change | % Change | ||||||||||||
Same Properties | $ | 457,237 | $ | 445,740 | $ | 11,497 | 2.6 | % | ||||||||
Non-Same Properties | 177,919 | 40,765 | 137,154 | 336.5 | ||||||||||||
Total rental | 635,156 | 486,505 | 148,651 | 30.6 | ||||||||||||
Same Properties | 155,017 | 151,588 | 3,429 | 2.3 | ||||||||||||
Non-Same Properties | 33,857 | 13,797 | 20,060 | 145.4 | ||||||||||||
Total tenant recoveries | 188,874 | 165,385 | 23,489 | 14.2 | ||||||||||||
Same Properties | 341 | 77 | 264 | 342.9 | ||||||||||||
Non-Same Properties | 4,935 | 20,577 | (15,642 | ) | (76.0 | ) | ||||||||||
Total other income | 5,276 | 20,654 | (15,378 | ) | (74.5 | ) | ||||||||||
Same Properties | 612,595 | 597,405 | 15,190 | 2.5 | ||||||||||||
Non-Same Properties | 216,711 | 75,139 | 141,572 | 188.4 | ||||||||||||
Total revenues | 829,306 | 672,544 | 156,762 | 23.3 | ||||||||||||
Same Properties | 182,281 | 176,967 | 5,314 | 3.0 | ||||||||||||
Non-Same Properties | 55,255 | 28,197 | 27,058 | 96.0 | ||||||||||||
Total rental operations | 237,536 | 205,164 | 32,372 | 15.8 | ||||||||||||
Same Properties | 430,314 | 420,438 | 9,876 | 2.3 | ||||||||||||
Non-Same Properties | 161,456 | 46,942 | 114,514 | 243.9 | ||||||||||||
Net operating income | $ | 591,770 | $ | 467,380 | $ | 124,390 | 26.6 | % | ||||||||
Net operating income – Same Properties | $ | 430,314 | $ | 420,438 | $ | 9,876 | 2.3 | % | ||||||||
Straight-line rent revenue and amortization of acquired below-market leases | (13,439 | ) | (28,024 | ) | 14,585 | (52.0 | ) | |||||||||
Net operating income – Same Properties (cash basis) | $ | 416,875 | $ | 392,414 | $ | 24,461 | 6.2 | % |
Nine Months Ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
Management fee income | $ | 1,643 | $ | 380 | $ | 1,263 | ||||||
Interest and other income | 1,626 | 2,223 | (597 | ) | ||||||||
Investment income | 2,007 | 18,051 | (16,044 | ) | ||||||||
Total other income | $ | 5,276 | $ | 20,654 | $ | (15,378 | ) |
Nine Months Ended September 30, | ||||||||||||
Component | 2017 | 2016 | Change | |||||||||
Interest incurred | $ | 137,888 | $ | 116,520 | $ | 21,368 | ||||||
Capitalized interest | (45,325 | ) | (40,790 | ) | (4,535 | ) | ||||||
Interest expense | $ | 92,563 | $ | 75,730 | $ | 16,833 | ||||||
Average debt balance outstanding (1) | $ | 4,675,967 | $ | 4,150,540 | $ | 525,427 | ||||||
Weighted-average annual interest rate (2) | 3.9 | % | 3.7 | % | 0.2 | % |
Component | Interest Rate(1) | Effective Date | Change | |||||||
Increases in interest incurred due to: | ||||||||||
Issuance of debt: | ||||||||||
$425 million unsecured senior note payable | 4.09% | March 2017 | $ | 9,730 | ||||||
$350 million unsecured senior note payable | 4.14% | June 2016 | 6,160 | |||||||
Secured construction loan | 3.89% | April 2016 | 2,770 | |||||||
Assumption of $203 million secured note payable | 3.40% | November 2016 | 5,520 | |||||||
Higher average balance and interest rate on secured construction loans | Various | Various | 4,460 | |||||||
Higher average interest rate on unsecured senior line of credit and term loans | 2,790 | |||||||||
Total increases | 31,430 | |||||||||
Decreases in interest incurred due to: | ||||||||||
Repayments of debt: | ||||||||||
Secured notes payable (2) | Various | Various | (4,550 | ) | ||||||
Unsecured senior bank term loan | Various | February 2017 | (2,960 | ) | ||||||
Lower average notional amounts of interest rate hedge agreements in effect | (1,910 | ) | ||||||||
Amortization of loan fees | (220 | ) | ||||||||
Other decrease in interest | (422 | ) | ||||||||
Total decreases | (10,062 | ) | ||||||||
Change in interest incurred | 21,368 | |||||||||
Increase in capitalized interest (3) | (4,535 | ) | ||||||||
Total change in interest expense | $ | 16,833 |
Guidance | |||||||
Summary of Key Changes in Guidance | As of | As of | 6/20/19 | ||||
EPS, FFO per share, and FFO per share, as adjusted | See updates below | ||||||
Rental rate | 29.0% | ||||||
Rental rate | 16.0% |
Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted | |||||||
As of 10/30/17 | As of 7/31/17 | ||||||
Earnings per share | $1.57 to $1.59 | $1.40 to $1.46 | |||||
Depreciation and amortization | 4.45 | 4.45 | |||||
Less: our share of gain on sale of real estate from unconsolidated JVs | (0.15) | — | |||||
Allocation of unvested restricted stock awards | (0.04) | (0.04) | |||||
Funds from operations per share | $5.83 to $5.85 | $5.81 to $5.87 | |||||
Add: impairment of non-real estate investments (1) | 0.05 | 0.05 | |||||
Add: loss on early extinguishment of debt | 0.01 | 0.01 | |||||
Add: preferred stock redemption charge (2) | 0.12 | 0.12 | |||||
Funds from operations per share, as adjusted | $6.01 to $6.03 | $5.99 to $6.05 |
Key Assumptions (3) (Dollars in millions) | 2017 Guidance | |||||||
Low | High | |||||||
Occupancy percentage for operating properties in North America as of December 31, 2017 | 96.6% | 97.2% | ||||||
Lease renewals and re-leasing of space: | ||||||||
Rental rate increases | 20.5% | 23.5% | ||||||
Rental rate increases (cash basis) | 10.5% | 13.5% | ||||||
Same property performance: | ||||||||
Net operating income increase | 2.0% | 4.0% | ||||||
Net operating income increase (cash basis) | 5.5% | 7.5% | ||||||
Straight-line rent revenue | $ | 107 | $ | 112 | ||||
General and administrative expenses (4) | $ | 68 | $ | 73 | ||||
Capitalization of interest (4) | $ | 48 | $ | 58 | ||||
Interest expense (4) | $ | 131 | $ | 141 |
Projected Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted, as Adjusted | As of 7/29/19 | As of 6/20/19 | ||||||
Earnings per share(1) | $2.39 to $2.47 | $2.65 to $2.75 | ||||||
Depreciation and amortization | 4.85 | 4.85 | ||||||
Allocation of unvested restricted stock awards | (0.05) | (0.05) | ||||||
Funds from operations per share(2) | $7.19 to $7.27 | $7.45 to $7.55 | ||||||
Unrealized gains on non-real estate investment(1) | (0.75) | (0.65) | ||||||
Loss on early extinguishment of debt(3) | 0.45 | 0.07 | ||||||
Preferred stock redemption charge | 0.02 | 0.02 | ||||||
Allocation to unvested restricted stock awards | 0.01 | 0.01 | ||||||
Funds from operations per share, as adjusted | $6.92 to $7.00 | $6.90 to $7.00 | ||||||
Midpoint | $6.96 | $6.95 | ||||||
(1) |
(2) |
(3) | In July 2019, we issued $1.25 billion of unsecured senior notes payable and made a partial repayment of $175.0 million on our unsecured senior bank term loan. Also in July 2019, we refinanced an aggregate $950.0 million of unsecured senior notes payable comprising $400.0 million of 2.75% unsecured senior notes payable due 2020 and $550.0 million of 4.60% unsecured senior notes payable due 2022, pursuant to a cash tender offer completed on July 17, 2019, and a subsequent call for redemption. The redemption is expected to settle on August 16, 2019. As a result of our refinancing and partial repayment, we expect to recognize a loss, primarily related to the early extinguishment of debt, of $43 million, or $0.38 per share, during the three months ending September 30, 2019. |
Key Assumptions(1) (Dollars in millions) | 2019 Guidance | ||||||||
Low | High | ||||||||
Occupancy percentage for operating properties in North America as of December 31, 2019(2) | 97.2% | 97.8% | |||||||
Lease renewals and re-leasing of space: | |||||||||
Rental rate increases | 27.0% | 30.0% | |||||||
Rental rate increases (cash basis) | 14.0% | 17.0% | |||||||
Same property performance: | |||||||||
Net operating income increase | 1.0% | 3.0% | |||||||
Net operating income increase (cash basis) | 6.0% | 8.0% | |||||||
Straight-line rent revenue | $ | 95 | $ | 105 | (3) | ||||
General and administrative expenses | $ | 108 | $ | 113 | |||||
Capitalization of interest | $ | 79 | $ | 89 | |||||
Interest expense | $ | 167 | $ | 177 |
(1) | The completion of our development and redevelopment projects will result in an increase in interest expense and other project costs because these project costs will no longer qualify for capitalization and will therefore be expensed as incurred. Our assumptions for |
(3) | Approximately 45% of straight-line rent revenue represents initial free rent on recently delivered and expected 2019 deliveries of new Class A properties from our |
Key Credit Metrics | 2019 Guidance | ||
Net debt to Adjusted EBITDA – fourth quarter of 2019, annualized | Less than or equal to 5.3x | ||
Net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2019, annualized | Less than or equal to 5.4x | ||
Fixed-charge coverage ratio – fourth quarter of 2019, annualized | Greater than 4.0x | ||
Value-creation pipeline as a percentage of gross investments in real estate as of December 31, 2019 | Less than 15% |
Consolidated Real Estate Joint Ventures (controlled by us through contractual rights or majority voting rights) | ||||||
Property/Market/Submarket | Noncontrolling(1) Interest Share | |||||
75/125 Binney Street/Greater Boston/Cambridge | 60.0 | % | ||||
225 Binney Street/Greater Boston/Cambridge | ||||||
409 and 499 Illinois Street/San Francisco/Mission Bay/SoMa | % | |||||
49.9 | % | |||||
Campus | 45.0 | % | ||||
9625 Towne Centre Drive/San Diego/University Town Center | % | |||||
Unconsolidated Real Estate Joint Ventures (controlled jointly or by our JV partners through contractual rights or majority voting rights) | ||||||
Property/Market/Submarket | Our Ownership Share(3) | |||||
% | ||||||
Menlo Gateway/San Francisco/Greater Stanford | 48.3 | % | (4) | |||
1401/1413 Research Boulevard/Maryland/Rockville | % | |||||
704 Quince Orchard Road/Maryland/Gaithersburg | 56.8 | % | (5) |
(1) | In addition to the consolidated real estate joint ventures listed, various partners hold insignificant noncontrolling interests in |
(2) |
(3) | In addition to the unconsolidated real estate joint ventures listed, we hold one other insignificant unconsolidated real estate joint venture |
(4) | As of |
(5) | Represents our ownership interest; our voting interest |
Maturity Date | Stated Rate | Interest Rate (1) | Debt Balance (2) | Outstanding Principal | Remaining Commitments | Total | |||||||||||||||||||
9/1/22 | (3) | 3.32 | % | 3.62 | % | $ | 94,086 | $ | 95,000 | $ | — | $ | 95,000 | ||||||||||||
9/1/22 | (3) | L+1.85 | % | N/A | $ | — | $ | — | $ | 17,000 | $ | 17,000 |
Maturity Date | Stated Rate | Interest Rate(1) | 100% at Joint Venture Level | ||||||||||||||||
Unconsolidated Joint Venture | Our Share | Debt Balance(2) | Remaining Commitments | ||||||||||||||||
1401/1413 Research Boulevard | 65.0% | 5/17/20 | L+2.50% | 5.91% | $ | 22,696 | $ | 5,997 | |||||||||||
1655 and 1725 Third Street | 10.0% | 6/29/21 | L+3.70% | 6.14% | 253,366 | 121,634 | |||||||||||||
704 Quince Orchard Road | 56.8% | 3/16/23 | L+1.95% | 4.59% | 6,997 | 7,865 | |||||||||||||
Menlo Gateway, Phase II | 48.3% | 5/1/35 | 4.53% | 4.59% | 8,019 | 147,784 | |||||||||||||
Menlo Gateway, Phase I | 48.3% | 8/10/35 | 4.15% | 4.18% | 143,334 | — | |||||||||||||
$ | 434,412 | $ | 283,280 |
Maturity Date | Stated Rate | Interest Rate (1) | Debt Balance (2) | Outstanding Principal | Remaining Commitments | Total | |||||||||||||||||||
5/17/20 | (4) | L+2.50 | % | (5) | 5.07 | % | $ | 3,699 | $ | 3,829 | $ | 21,171 | $ | 25,000 |
(1) |
(2) | Represents outstanding principal, net of unamortized deferred financing costs. |
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures | Our Share of Unconsolidated Real Estate Joint Ventures | |||||||||||||||||||||||||||
September 30, 2017 | September 30, 2017 | June 30, 2019 | June 30, 2019 | |||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||
Total revenues | $ | 13,400 | $ | 41,022 | $ | 1,044 | $ | 5,849 | $ | 20,874 | $ | 38,679 | $ | 3,230 | $ | 6,051 | ||||||||||||||
Rental operations | (4,189 | ) | (11,772 | ) | (489 | ) | (2,194 | ) | (5,842 | ) | (10,752 | ) | (723 | ) | (1,290 | ) | ||||||||||||||
9,211 | 29,250 | 555 | 3,655 | 15,032 | 27,927 | 2,507 | 4,761 | |||||||||||||||||||||||
General and administrative | (52 | ) | (126 | ) | (10 | ) | (40 | ) | (94 | ) | (128 | ) | (33 | ) | (65 | ) | ||||||||||||||
Interest | — | — | (168 | ) | (1,552 | ) | — | — | (239 | ) | (469 | ) | ||||||||||||||||||
Depreciation and amortization | (3,608 | ) | (10,985 | ) | (383 | ) | (1,119 | ) | (6,744 | ) | (12,163 | ) | (973 | ) | (1,819 | ) | ||||||||||||||
Gain on sale of real estate | — | — | 14,106 | 14,106 | ||||||||||||||||||||||||||
Fixed returns allocated to redeemable noncontrolling interests(1) | 218 | 435 | — | — | ||||||||||||||||||||||||||
$ | 5,551 | (1) | $ | 18,139 | (1) | $ | 14,100 | $ | 15,050 | $ | 8,412 | $ | 16,071 | $ | 1,262 | $ | 2,408 | |||||||||||||
Straight-line rent and below-market lease revenue | $ | 779 | $ | 1,801 | $ | 563 | $ | 1,016 | ||||||||||||||||||||||
Funds from operations | $ | 15,156 | $ | 28,234 | $ | 2,235 | $ | 4,227 |
September 30, 2017 | ||||||||
Noncontrolling Interest Share of Consolidated Real Estate JVs | Our Share of Unconsolidated Real Estate JVs | |||||||
Investments in real estate | $ | 476,339 | $ | 57,340 | ||||
Cash and cash equivalents | 13,957 | 4,317 | ||||||
Other assets | 29,534 | 3,707 | ||||||
Secured notes payable | — | (28,278 | ) | |||||
Other liabilities | (21,989 | ) | (3,394 | ) | ||||
Redeemable noncontrolling interests | (11,418 | ) | (1) | — | ||||
$ | 486,423 | $ | 33,692 |
(1) |
As of June 30, 2019 | |||||||
Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures | Our Share of Unconsolidated Real Estate Joint Ventures | ||||||
Investments in real estate | $ | 713,892 | $ | 444,845 | |||
Cash and cash equivalents | 21,439 | 7,350 | |||||
Restricted cash | — | 99 | |||||
Other assets | 70,029 | 28,881 | |||||
Secured notes payable | — | (117,103 | ) | ||||
Other liabilities | (22,911 | ) | (29,910 | ) | |||
Redeemable noncontrolling interests | (10,994 | ) | — | ||||
$ | 771,455 | $ | 334,162 |
Public/Private Investment Mix (Cost) | Tenant/Non-Tenant Mix (Cost) | |||||||||||||
![]() | ![]() | |||||||||||||
Investment Type | Cost | Net Unrealized Gains | Total | Number of Investments | ||||||||||
Public | $ | 55,433 | $ | 45,189 | $ | 100,622 | 259 | |||||||
Private | 384,640 | — | 384,640 | Average Cost | ||||||||||
Total | $ | 440,073 | $ | 45,189 | $ | 485,262 | $1.7M | |||||||
June 30, 2019 | |||||||||||||||
Three Months Ended | Six Months Ended | Year Ended December 31, 2018 | |||||||||||||
Realized gains | $ | 10,442 | $ | 21,792 | $ | 37,129 | (1) | ||||||||
Unrealized gains | 11,058 | 83,264 | 99,634 | ||||||||||||
Investment income | $ | 21,500 | $ | 105,056 | $ | 136,763 | |||||||||
Net Debt to Adjusted EBITDA (1) | Net Debt and Preferred Stock to Adjusted EBITDA (1) | ||||
![]() | ![]() | ||||
Fixed-Charge Coverage Ratio (1) | Liquidity (2) | ||||
![]() | $1.7B | ||||
(In millions) | |||||
Availability under our $1.65 billion unsecured senior line of credit | $ | 1,336 | |||
Remaining construction loan commitments | 156 | ||||
Available-for-sale equity securities, at fair value | 101 | ||||
Cash, cash equivalents, and restricted cash | 146 | ||||
$ | 1,739 |
Investments | Cost | Adjustments | Carrying Amount | ||||||||||||
Fair value: | |||||||||||||||
Publicly traded companies | $ | 186,688 | $ | 107,396 | $ | 294,084 | |||||||||
Entities that report NAV | 240,177 | 142,448 | 382,625 | ||||||||||||
Entities that do not report NAV: | |||||||||||||||
Entities with observable price changes | 41,187 | 73,575 | 114,762 | ||||||||||||
Entities without observable price changes | 266,383 | — | 266,383 | ||||||||||||
June 30, 2019 | $ | 734,435 | $ | 323,419 | $ | 1,057,854 | |||||||||
March 31, 2019 | $ | 688,543 | $ | 312,361 | $ | 1,000,904 |
(1) | Includes realized gains of $14.7 million related to two publicly traded non-real estate investments and impairment of $5.5 million primarily related to one privately held non-real estate investment. Excluding these gains and impairment, our realized gains on non-real estate investments were $27.9 million for the year ended December 31, 2018. |
Public/Private Mix (Cost) | Tenant/Non-Tenant Mix (Cost) | |
![]() | ![]() | |
$734.4M | ||
Cost | ||
$1.1B | ||
Carrying Amount |
Net Debt to Adjusted EBITDA(1) Net Debt and Preferred Stock to Adjusted EBITDA(1) | Unsecured Senior Line of Credit Balance | ||||
(In millions) | |||||
![]() | ![]() | ||||
Fixed-Charge Coverage Ratio(1) | Liquidity(2) | ||||
![]() | $3.4B | ||||
(In millions) | |||||
Availability under our $2.2 billion unsecured senior line of credit | $ | 1,686 | |||
Outstanding forward equity sales agreements | 1,132 | ||||
Cash, cash equivalents, and restricted cash | 238 | ||||
Investments in publicly traded companies | 294 | ||||
$ | 3,350 | ||||
(1) | Quarter annualized. |
(2) | As of |
Description | Aggregate Commitments | Outstanding Balance | Remaining Commitments/Liquidity | |||||||||
$1.65 billion unsecured senior line of credit | $ | 1,650,000 | $ | 314,000 | $ | 1,336,000 | ||||||
Secured construction loans: | ||||||||||||
50 and 60 Binney Street/Greater Boston | 350,000 | 317,979 | 32,021 | |||||||||
100 Binney Street/Greater Boston | 304,281 | 179,764 | 124,517 | |||||||||
$ | 2,304,281 | $ | 811,743 | 1,492,538 | ||||||||
Available-for-sale equity securities, at fair value | 100,622 | |||||||||||
Cash, cash equivalents, and restricted cash | 146,275 | |||||||||||
Total liquidity | $ | 1,739,435 |
Description | Stated Rate | Aggregate Commitments | Outstanding Balance | Remaining Commitments/Liquidity | |||||||||||
$2.2 billion unsecured senior line of credit | L+0.825 | % | $ | 2,200,000 | $ | 514,000 | $ | 1,686,000 | |||||||
Outstanding forward equity sales agreements | 1,132,209 | ||||||||||||||
Cash, cash equivalents, and restricted cash | 238,225 | ||||||||||||||
Investments in publicly traded companies | 294,084 | ||||||||||||||
Total liquidity | $ | 3,350,518 |
September 30, 2017 | December 31, 2016 | ||||||
Funds held in trust under the terms of certain secured notes payable | $ | 17,853 | $ | 7,387 | |||
Funds held in escrow related to construction projects and investing activities | 4,544 | 4,541 | |||||
Other | 5,316 | 4,406 | |||||
Total | $ | 27,713 | $ | 16,334 |
Nine Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2019 | 2018 | Change | |||||||||||||||||
Net cash provided by operating activities | $ | 356,330 | $ | 291,851 | $ | 64,479 | $ | 308,340 | $ | 258,241 | $ | 50,099 | ||||||||||
Net cash used in investing activities | $ | (1,313,764 | ) | $ | (715,301 | ) | $ | (598,463 | ) | $ | (1,452,237 | ) | $ | (1,268,899 | ) | $ | (183,338 | ) | ||||
Net cash provided by financing activities | $ | 949,385 | $ | 457,720 | $ | 491,665 | $ | 1,109,218 | $ | 1,056,486 | $ | 52,732 |
Nine Months Ended September 30, | Six Months Ended June 30, | Increase (Decrease) | ||||||||||||||||||||
2017 | 2016 | Change | 2019 | 2018 | ||||||||||||||||||
Proceeds from sales of real estate | $ | 4,263 | $ | 27,332 | $ | (23,069 | ) | |||||||||||||||
Sources of cash from investing activities: | ||||||||||||||||||||||
Sales of investments | $ | 49,967 | $ | 44,707 | $ | 5,260 | ||||||||||||||||
Returns of deposits for investing activities | — | 5,500 | (5,500 | ) | ||||||||||||||||||
49,967 | 50,207 | (240 | ) | |||||||||||||||||||
Uses of cash for investing activities: | ||||||||||||||||||||||
Purchases of real estate | 715,030 | 688,698 | 26,332 | |||||||||||||||||||
Additions to real estate | (660,877 | ) | (638,568 | ) | (22,309 | ) | 577,322 | 431,225 | 146,097 | |||||||||||||
Purchases of real estate | (590,884 | ) | (18,108 | ) | (572,776 | ) | ||||||||||||||||
Deposits for investing activities | 4,700 | (54,998 | ) | 59,698 | ||||||||||||||||||
Deposits paid for investing activities | 9,000 | — | 9,000 | |||||||||||||||||||
Investments in unconsolidated real estate joint ventures | 95,950 | 44,486 | 51,464 | |||||||||||||||||||
Additions to investments | (128,190 | ) | (68,384 | ) | (59,806 | ) | 104,902 | 118,775 | (13,873 | ) | ||||||||||||
Sales of investments | 18,896 | 35,295 | (16,399 | ) | ||||||||||||||||||
Repayment of notes receivable | — | 9,054 | (9,054 | ) | ||||||||||||||||||
Other | 38,328 | (6,924 | ) | 45,252 | ||||||||||||||||||
Acquisitions of interests in unconsolidated real estate joint ventures | — | 35,922 | (35,922 | ) | ||||||||||||||||||
1,502,204 | 1,319,106 | 183,098 | ||||||||||||||||||||
Net cash used in investing activities | $ | (1,313,764 | ) | $ | (715,301 | ) | $ | (598,463 | ) | $ | 1,452,237 | $ | 1,268,899 | $ | 183,338 |
Nine Months Ended September 30, | Six Months Ended June 30, | |||||||||||||||||||||
2017 | 2016 | Change | 2019 | 2018 | Change | |||||||||||||||||
Borrowings from secured notes payable | $ | 145,272 | $ | 215,330 | $ | (70,058 | ) | $ | — | $ | 9,044 | $ | (9,044 | ) | ||||||||
Repayments of borrowings from secured notes payable | (2,882 | ) | (234,096 | ) | 231,214 | (302,878 | ) | (3,162 | ) | (299,716 | ) | |||||||||||
Proceeds from issuance of unsecured senior notes payable | 424,384 | 348,604 | 75,780 | 854,209 | 899,321 | (45,112 | ) | |||||||||||||||
Borrowings from unsecured senior line of credit | 2,634,000 | 2,349,000 | 285,000 | 2,114,000 | 2,469,000 | (355,000 | ) | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (2,348,000 | ) | (2,084,000 | ) | (264,000 | ) | (1,808,000 | ) | (2,519,000 | ) | 711,000 | |||||||||||
Repayments of borrowings from unsecured senior bank term loans | (200,000 | ) | (200,000 | ) | — | |||||||||||||||||
Payments of loan fees | (15,796 | ) | (8,003 | ) | (7,793 | ) | ||||||||||||||||
Changes related to debt | 652,774 | 394,838 | 257,936 | 841,535 | 847,200 | (5,665 | ) | |||||||||||||||
Taxes paid related to net settlement of equity awards | (4,086 | ) | — | (4,086 | ) | |||||||||||||||||
Repurchase of 7.00% Series D cumulative convertible preferred stock | (17,934 | ) | (98,633 | ) | 80,699 | (9,240 | ) | — | (9,240 | ) | ||||||||||||
Redemption of 6.45% Series E cumulative redeemable preferred stock | (130,350 | ) | — | (130,350 | ) | |||||||||||||||||
Proceeds from the issuance of common stock | 705,391 | 367,802 | 337,589 | |||||||||||||||||||
Proceeds from issuance of common stock | 85,394 | 400,207 | (314,813 | ) | ||||||||||||||||||
Dividend payments | (238,131 | ) | (195,453 | ) | (42,678 | ) | (221,046 | ) | (185,644 | ) | (35,402 | ) | ||||||||||
Contributions from noncontrolling interests | 9,877 | 68,621 | (58,744 | ) | ||||||||||||||||||
Distributions to and purchase of noncontrolling interests | (17,432 | ) | (62,605 | ) | 45,173 | |||||||||||||||||
Other | (14,810 | ) | (16,850 | ) | 2,040 | |||||||||||||||||
Contributions from and sales of noncontrolling interests | 441,251 | 14,564 | 426,687 | |||||||||||||||||||
Distributions to and purchases of noncontrolling interests | (24,590 | ) | (19,841 | ) | (4,749 | ) | ||||||||||||||||
Net cash provided by financing activities | $ | 949,385 | $ | 457,720 | $ | 491,665 | $ | 1,109,218 | $ | 1,056,486 | $ | 52,732 |
Key Sources and Uses of Capital (In millions) | 2017 Guidance | Key Items Remaining after 9/30/17 | |||||||||||||||
Range | Midpoint | ||||||||||||||||
Sources of capital: | |||||||||||||||||
Net cash provided by operating activities after dividends | $ | 115 | $ | 135 | $ | 125 | |||||||||||
Incremental debt | 388 | 298 | 343 | ||||||||||||||
Real estate dispositions and common equity | 1,080 | 1,350 | 1,215 | (1) | |||||||||||||
Total sources of capital | $ | 1,583 | $ | 1,783 | $ | 1,683 | |||||||||||
Uses of capital: | |||||||||||||||||
Construction | $ | 815 | $ | 915 | $ | 865 | $ | 243 | |||||||||
Acquisitions | 620 | 720 | 670 | (2) | $ | 79 | (3) | ||||||||||
7.00% Series D convertible preferred stock repurchases | 18 | 18 | 18 | (4) | |||||||||||||
6.45% Series E redeemable preferred stock redemption | 130 | 130 | 130 | ||||||||||||||
Total uses of capital | $ | 1,583 | $ | 1,783 | $ | 1,683 | |||||||||||
Incremental debt (included above): | |||||||||||||||||
Issuance of unsecured senior notes payable | $ | 425 | $ | 425 | $ | 425 | |||||||||||
Borrowings – secured construction loans | 200 | 250 | 225 | ||||||||||||||
Repayments of secured notes payable | (5 | ) | (10 | ) | (8 | ) | |||||||||||
Repayment of unsecured senior bank term loan | (200 | ) | (200 | ) | (200 | ) | |||||||||||
$1.65 billion unsecured senior line of credit/other | (32 | ) | (167 | ) | (99 | ) | |||||||||||
Incremental debt | $ | 388 | $ | 298 | $ | 343 |
Summary of Key Changes in Key Sources and Uses of Capital Guidance (In millions) | Guidance Midpoint | |||||||
As of 7/29/19 | As of 6/20/19 | |||||||
Issuance of unsecured senior notes payable | $ | 2,100 | $ | 850 | ||||
Repayments of unsecured senior notes payable | $ | (950 | ) | $ | — | |||
Repayments of unsecured senior bank term loan | $ | (175 | ) | $ | — | |||
Key Sources and Uses of Capital (In millions) | 2019 Guidance | Certain Completed Items | |||||||||||||||
Range | Midpoint | ||||||||||||||||
Sources of capital: | |||||||||||||||||
Net cash provided by operating activities after dividends | $ | 170 | $ | 210 | $ | 190 | |||||||||||
Incremental debt | 610 | 570 | 590 | ||||||||||||||
Real estate dispositions and partial interest sales | 820 | 920 | 870 | $ | 438 | (1) | |||||||||||
Common equity | 1,150 | 1,250 | 1,200 | $ | 1,218 | (2) | |||||||||||
Total sources of capital | $ | 2,750 | $ | 2,950 | $ | 2,850 | |||||||||||
Uses of capital: | |||||||||||||||||
Construction | $ | 1,250 | $ | 1,350 | $ | 1,300 | |||||||||||
Acquisitions | 1,500 | 1,600 | 1,550 | (1) | |||||||||||||
Total uses of capital | $ | 2,750 | $ | 2,950 | $ | 2,850 | |||||||||||
Incremental debt (included above): | |||||||||||||||||
Issuance of unsecured senior notes payable | $ | 2,100 | $ | 2,100 | $ | 2,100 | $ | 2,100 | (3) | ||||||||
Assumption of secured note payable | 28 | 28 | 28 | $ | 28 | ||||||||||||
Repayments of unsecured senior notes payable | (950 | ) | (950 | ) | (950 | ) | $ | (950 | ) | (3) | |||||||
Repayments of secured notes payable | (310 | ) | (320 | ) | (315 | ) | $ | (300 | ) | ||||||||
Repayments of unsecured senior bank term loan | (175 | ) | (175 | ) | (175 | ) | $ | (175 | ) | (3) | |||||||
$2.2 billion unsecured senior line of credit/other | (83 | ) | (113 | ) | (98 | ) | |||||||||||
Incremental debt | $ | 610 | $ | 570 | $ | 590 |
(1) |
(2) |
(3) |
September 30, 2017 | ||||||||||
Facility | Balance | Maturity Date (1) | Applicable Margin | Facility Fee | ||||||
$1.65 billion unsecured senior line of credit | $ | 314,000 | October 2021 | L+1.00% | 0.20% | |||||
2019 Unsecured Senior Bank Term Loan | $ | 199,543 | January 2019 | L+1.20% | N/A | |||||
2021 Unsecured Senior Bank Term Loan | $ | 348,317 | January 2021 | L+1.10% | N/A |
Commitment | Balance(1) | Applicable Rate | Maturity Date | Facility Fee | ||||||
Unsecured senior line of credit | $2.2 billion | $514 million | L+0.825% | January 2024(2) | 0.15% | |||||
Unsecured senior bank term loan | $350 million | $350 million | L+0.90% | January 2025 | N/A | |||||
(1) | Excludes loan fees and premiums (discounts) as of June 30, 2019. |
(2) | Includes |
Nine Months Ended September 30, | |||||||||||
2017 | 2016 | Change | |||||||||
Common stock dividends | $ | 229,814 | $ | 177,966 | $ | 51,848 | |||||
7.00% Series D cumulative convertible preferred stock dividends | 4,125 | 11,198 | (7,073 | ) | |||||||
6.45% Series E cumulative redeemable preferred stock dividends | 4,192 | 6,289 | (2,097 | ) | |||||||
$ | 238,131 | $ | 195,453 | $ | 42,678 |
Six Months Ended June 30, | |||||||||||
2019 | 2018 | Change | |||||||||
Common stock | $ | 218,914 | $ | 183,040 | $ | 35,874 | |||||
Series D Cumulative Convertible Preferred Stock | 2,132 | 2,604 | (472 | ) | |||||||
$ | 221,046 | $ | 185,644 | $ | 35,402 |
Payments by Period | Payments by Period | |||||||||||||||||||||||||||||||||||||
Total | 2017 | 2018-2019 | 2020-2021 | Thereafter | Total | 2019 | 2020-2021 | 2022-2023 | Thereafter | |||||||||||||||||||||||||||||
Secured and unsecured debt (1) (2) | $ | 4,828,766 | $ | 732 | $ | 925,546 | $ | 1,181,834 | $ | 2,720,654 | ||||||||||||||||||||||||||||
Secured and unsecured debt (1)(2) | $ | 6,379,761 | $ | 3,179 | $ | 413,461 | $ | 1,161,775 | $ | 4,801,346 | ||||||||||||||||||||||||||||
Estimated interest payments on fixed-rate and hedged variable-rate debt (3) | 1,006,863 | 35,059 | 306,472 | 247,533 | 417,799 | 1,800,551 | 117,691 | 452,263 | 394,042 | 836,555 | ||||||||||||||||||||||||||||
Estimated interest payments on variable-rate debt (4) | 8,735 | 1,765 | 6,970 | — | — | |||||||||||||||||||||||||||||||||
Ground lease obligations | 584,022 | 4,037 | 24,346 | 23,724 | 531,915 | 644,656 | 7,029 | 27,329 | 27,223 | 583,075 | ||||||||||||||||||||||||||||
Other obligations | 3,607 | 399 | 3,107 | 101 | — | 8,377 | 853 | 1,135 | 1,676 | 4,713 | ||||||||||||||||||||||||||||
Total | $ | 6,431,993 | $ | 41,992 | $ | 1,266,441 | $ | 1,453,192 | $ | 3,670,368 | $ | 8,833,345 | $ | 128,752 | $ | 894,188 | $ | 1,584,716 | $ | 6,225,689 |
(1) | Amounts represent principal amounts due and exclude unamortized |
(2) | Payment dates reflect any extension options that we control. |
(3) |
Covenant Ratios(1) | Requirement | |||
Total Debt to Total Assets | Less than or equal to 60% | |||
Secured Debt to Total Assets | Less than or equal to 40% | |||
Consolidated EBITDA(2) to Interest Expense | Greater than or equal to 1.5x | |||
Unencumbered Total Asset Value to Unsecured Debt | Greater than or equal to 150% |
(1) |
(2) | The calculation of consolidated EBITDA is based on the definitions contained in our loan agreements and is not directly comparable to the computation of EBITDA as described in Exchange Act Release No. 47226. |
Covenant Ratios(1) | Requirement | June 30, 2019 | |||
Leverage Ratio | Less than or equal to 60.0% | 30.0% | |||
Secured Debt Ratio | Less than or equal to 45.0% | 1.6% | |||
Fixed-Charge Coverage Ratio | Greater than or equal to 1.50x | 3.92x | |||
Unsecured Interest Coverage Ratio | Greater than or equal to 1.75x | 6.24x |
(1) | All covenant ratio titles utilize terms as defined in the respective debt agreements. |
Net Unrealized Gain (Loss) on: | ||||||||||||||||
Available-for- Sale Equity Securities | Interest Rate Hedge Agreements | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2016 | $ | 19,293 | $ | 405 | $ | (14,343 | ) | $ | 5,355 | |||||||
Other comprehensive income before reclassifications | 23,414 | 812 | 7,592 | 31,818 | ||||||||||||
Amounts reclassified from other comprehensive income | 2,482 | 1,810 | 2,421 | 6,713 | ||||||||||||
25,896 | 2,622 | 10,013 | 38,531 | |||||||||||||
Amounts attributable to noncontrolling interests | — | — | (22 | ) | (22 | ) | ||||||||||
Net other comprehensive income | 25,896 | 2,622 | 9,991 | 38,509 | ||||||||||||
Balance as of September 30, 2017 | $ | 45,189 | $ | 3,027 | $ | (4,352 | ) | $ | 43,864 |
Net Unrealized Gains (Losses) on: | ||||||||||||
Interest Rate Hedge Agreements | Foreign Currency Translation | Total | ||||||||||
Balance as of December 31, 2018 | $ | 1,838 | $ | (12,273 | ) | $ | (10,435 | ) | ||||
Other comprehensive (loss) income before reclassifications | (1,684 | ) | 2,800 | 1,116 | ||||||||
Amounts reclassified from other comprehensive income to net income | (1,815 | ) | — | (1,815 | ) | |||||||
Net other comprehensive (loss) income | (3,499 | ) | 2,800 | (699 | ) | |||||||
Balance as of June 30, 2019 | $ | (1,661 | ) | $ | (9,473 | ) | $ | (11,134 | ) |
Noncontrolling Interest Share of Consolidated Real Estate Joint Ventures | Our Share of Unconsolidated Real Estate Joint Ventures | ||||||||||||||
June 30, 2019 | June 30, 2019 | ||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||||||||||
Net income | $ | 8,412 | $ | 16,071 | $ | 1,262 | $ | 2,408 | |||||||
Depreciation and amortization | 6,744 | 12,163 | 973 | 1,819 | |||||||||||
Funds from operations | $ | 15,156 | $ | 28,234 | $ | 2,235 | $ | 4,227 | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
(In thousands) | 2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 51,273 | $ | 5,452 | $ | 108,564 | $ | (126,014 | ) | |||||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted | $ | 76,330 | $ | 52,016 | $ | 200,181 | $ | 184,991 | ||||||||||||||||||||||||
Depreciation and amortization | 107,788 | 77,133 | 309,069 | 218,168 | 134,437 | 118,852 | 268,524 | 233,071 | ||||||||||||||||||||||||
Noncontrolling share of depreciation and amortization from consolidated real estate JVs | (3,608 | ) | (2,224 | ) | (10,985 | ) | (6,751 | ) | (6,744 | ) | (3,914 | ) | (12,163 | ) | (7,781 | ) | ||||||||||||||||
Our share of depreciation and amortization from unconsolidated real estate JVs | 383 | 658 | 1,119 | 2,052 | 973 | 807 | 1,819 | 1,451 | ||||||||||||||||||||||||
Gain on sales of real estate – rental properties | — | — | (270 | ) | — | |||||||||||||||||||||||||||
Our share of gain on sales of real estate from unconsolidated real estate JVs | (14,106 | ) | — | (14,106 | ) | — | ||||||||||||||||||||||||||
Gain on sales of real estate – land parcels | — | (90 | ) | (111 | ) | (90 | ) | |||||||||||||||||||||||||
Impairment of real estate – rental properties | — | 6,293 | 203 | 94,688 | ||||||||||||||||||||||||||||
Assumed conversion of 7.00% Series D cumulative convertible preferred stock(1) | 1,005 | — | 2,031 | 2,604 | ||||||||||||||||||||||||||||
Allocation to unvested restricted stock awards | (957 | ) | (438 | ) | (2,185 | ) | (14 | ) | (1,445 | ) | (1,042 | ) | (3,740 | ) | (3,212 | ) | ||||||||||||||||
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted (1) | 140,773 | 86,784 | 391,298 | 182,039 | ||||||||||||||||||||||||||||
Non-real estate investment income | — | — | — | (4,361 | ) | |||||||||||||||||||||||||||
Impairment of land parcels and non-real estate investments | — | 4,886 | 4,491 | 101,028 | ||||||||||||||||||||||||||||
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted(2) | 204,556 | 166,719 | 456,652 | 411,124 | ||||||||||||||||||||||||||||
Unrealized gains on non-real estate investments | (11,058 | ) | (5,067 | ) | (83,264 | ) | (77,296 | ) | ||||||||||||||||||||||||
Realized gain on non-real estate investment | — | — | — | (8,252 | ) | |||||||||||||||||||||||||||
Impairment real estate – land parcel | — | 6,311 | — | 6,311 | ||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 3,230 | 670 | 3,230 | — | — | 7,361 | — | ||||||||||||||||||||||||
Preferred stock redemption charge | — | 13,095 | 11,279 | 25,614 | — | — | 2,580 | — | ||||||||||||||||||||||||
Removal of assumed conversion of 7.00% Series D cumulative convertible preferred stock(1) | (1,005 | ) | — | (2,031 | ) | (2,604 | ) | |||||||||||||||||||||||||
Allocation to unvested restricted stock awards | — | (359 | ) | (227 | ) | (1,736 | ) | 179 | (18 | ) | 1,157 | 1,140 | ||||||||||||||||||||
Funds from operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted | $ | 140,773 | $ | 107,636 | $ | 407,511 | $ | 305,814 | $ | 192,672 | $ | 167,945 | $ | 382,455 | $ | 330,423 |
(1) | The assumed conversion requires the add back of preferred dividends paid on our 7.00% Series D cumulative convertible preferred stock, as shown here. Refer to “Weighted-Average Shares of Common Stock Outstanding – Diluted” within this section of this Item 2 for additional information. |
(2) | Calculated in accordance with standards established by the Nareit Board of Governors. |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
(Per share) | 2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 0.55 | $ | 0.07 | $ | 1.20 | $ | (1.69 | ) | |||||||||||||||||||||||
Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted | $ | 0.68 | $ | 0.51 | $ | 1.80 | $ | 1.83 | ||||||||||||||||||||||||
Depreciation and amortization | 1.11 | 0.97 | 3.26 | 2.85 | 1.15 | 1.13 | 2.32 | 2.23 | ||||||||||||||||||||||||
Our share of gain on sales of real estate from unconsolidated real estate JVs | (0.15 | ) | — | (0.15 | ) | — | ||||||||||||||||||||||||||
Impairment of real estate – rental properties | — | 0.08 | — | 1.27 | ||||||||||||||||||||||||||||
Allocation to unvested restricted stock awards | — | (0.01 | ) | (0.04 | ) | (0.03 | ) | |||||||||||||||||||||||||
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted (1) | 1.51 | 1.12 | 4.31 | 2.43 | 1.83 | 1.63 | 4.08 | 4.03 | ||||||||||||||||||||||||
Non-real estate investment income | — | — | — | (0.06 | ) | |||||||||||||||||||||||||||
Unrealized gains on non-real estate investments | (0.10 | ) | (0.05 | ) | (0.75 | ) | (0.76 | ) | ||||||||||||||||||||||||
Realized gain on non-real estate investment | — | — | — | (0.08 | ) | |||||||||||||||||||||||||||
Impairment of land parcels and non-real estate investments | — | 0.06 | 0.05 | 1.34 | — | 0.06 | — | 0.06 | ||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 0.04 | 0.01 | 0.04 | — | — | 0.07 | — | ||||||||||||||||||||||||
Preferred stock redemption charge | — | 0.17 | 0.12 | 0.34 | — | — | 0.02 | — | ||||||||||||||||||||||||
Allocation to unvested restricted stock awards | — | — | 0.02 | 0.02 | ||||||||||||||||||||||||||||
Funds from operations per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – diluted, as adjusted | $ | 1.51 | $ | 1.39 | $ | 4.49 | $ | 4.09 | $ | 1.73 | $ | 1.64 | $ | 3.44 | $ | 3.27 | ||||||||||||||||
Weighted-average shares of common stock outstanding for calculating funds from operations per share and funds from operations, as adjusted, per share – diluted | 93,296 | 77,402 | 90,766 | 74,778 | ||||||||||||||||||||||||||||
Weighted-average shares of common stock outstanding(2) for calculations of: | ||||||||||||||||||||||||||||||||
EPS – diluted | 111,501 | 102,236 | 111,279 | 101,191 | ||||||||||||||||||||||||||||
Funds from operations – diluted, per share | 112,077 | 102,236 | 111,857 | 101,933 | ||||||||||||||||||||||||||||
Funds from operations – diluted, as adjusted, per share | 111,501 | 102,236 | 111,279 | 101,191 |
(1) | Calculated in accordance with standards established by the |
(2) | Refer to “Weighted-Average Shares of Common Stock Outstanding – Diluted” within this section of this Item 2 for additional information. |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Net income (loss) | $ | 59,546 | $ | 28,559 | $ | 148,597 | $ | (69,591 | ) | |||||||||||||||||||||
Net income | $ | 87,179 | $ | 60,547 | $ | 223,997 | $ | 202,065 | ||||||||||||||||||||||
Interest expense | 31,031 | 25,850 | 92,563 | 75,730 | 42,879 | 38,097 | 81,979 | 75,012 | ||||||||||||||||||||||
Income taxes | 1,305 | 355 | 3,405 | 2,374 | 890 | 1,106 | 2,187 | 2,046 | ||||||||||||||||||||||
Depreciation and amortization | 107,788 | 77,133 | 309,069 | 218,168 | 134,437 | 118,852 | 268,524 | 233,071 | ||||||||||||||||||||||
Stock compensation expense | 7,893 | 7,451 | 18,649 | 19,007 | 11,437 | 7,975 | 22,466 | 15,223 | ||||||||||||||||||||||
Impairment of real estate | — | 6,311 | — | 6,311 | ||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 3,230 | 670 | 3,230 | — | — | 7,361 | — | ||||||||||||||||||||||
Gain on sales of real estate – rental properties | — | — | (270 | ) | — | |||||||||||||||||||||||||
Our share of gain on sales of real estate from unconsolidated real estate JVs | (14,106 | ) | — | (14,106 | ) | — | ||||||||||||||||||||||||
Gain on sales of real estate – land parcels | — | (90 | ) | (111 | ) | (90 | ) | |||||||||||||||||||||||
Impairment of real estate and non-real estate investments | — | 11,179 | 4,694 | 196,302 | ||||||||||||||||||||||||||
Unrealized gains on non-real estate investments | (11,058 | ) | (5,067 | ) | (83,264 | ) | (77,296 | ) | ||||||||||||||||||||||
Adjusted EBITDA | $ | 193,457 | $ | 153,667 | $ | 563,160 | $ | 445,130 | $ | 265,764 | $ | 227,821 | $ | 523,250 | $ | 456,432 | ||||||||||||||
Revenues | $ | 285,370 | $ | 230,379 | $ | 833,797 | (1) | $ | 672,544 | $ | 373,856 | $ | 325,034 | $ | 732,698 | $ | 645,173 | |||||||||||||
Non-real estate investments – total realized gains | 10,442 | 7,463 | 21,792 | 20,795 | ||||||||||||||||||||||||||
Revenues, as adjusted | $ | 384,298 | $ | 332,497 | $ | 754,490 | $ | 665,968 | ||||||||||||||||||||||
Adjusted EBITDA Margins | 68 | % | 67 | % | 68 | % | 66 | % | ||||||||||||||||||||||
Adjusted EBITDA margin | 69% | 69% | 69% | 69% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Adjusted EBITDA | $ | 193,457 | $ | 153,667 | $ | 563,160 | $ | 445,130 | ||||||||
Interest expense | $ | 31,031 | $ | 25,850 | 92,563 | 75,730 | ||||||||||
Capitalized interest | 17,092 | 14,903 | 45,325 | 40,790 | ||||||||||||
Amortization of loan fees | (2,840 | ) | (3,080 | ) | (8,578 | ) | (8,792 | ) | ||||||||
Amortization of debt premiums | 652 | 5 | 1,873 | 117 | ||||||||||||
Cash interest | 45,935 | 37,678 | 131,183 | 107,845 | ||||||||||||
Dividends on preferred stock | 1,302 | 5,007 | 6,364 | 16,388 | ||||||||||||
Fixed charges | $ | 47,237 | $ | 42,685 | $ | 137,547 | $ | 124,233 | ||||||||
Fixed-charge coverage ratio: | ||||||||||||||||
– period annualized | 4.1x | 3.6x | 4.1x | 3.6x | ||||||||||||
– trailing 12 months | 4.0x | 3.6x | 4.0x | 3.6x |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Adjusted EBITDA | $ | 265,764 | $ | 227,821 | $ | 523,250 | $ | 456,432 | ||||||||
Interest expense | $ | 42,879 | $ | 38,097 | $ | 81,979 | $ | 75,012 | ||||||||
Capitalized interest | 21,674 | 15,527 | 40,183 | 28,887 | ||||||||||||
Amortization of loan fees | (2,380 | ) | (2,593 | ) | (4,613 | ) | (5,136 | ) | ||||||||
Amortization of debt premiums | 782 | 606 | 1,583 | 1,181 | ||||||||||||
Cash interest | 62,955 | 51,637 | 119,132 | 99,944 | ||||||||||||
Dividends on preferred stock | 1,005 | 1,302 | 2,031 | 2,604 | ||||||||||||
Fixed charges | $ | 63,960 | $ | 52,939 | $ | 121,163 | $ | 102,548 | ||||||||
Fixed-charge coverage ratio: | ||||||||||||||||
– period annualized | 4.2x | 4.3x | 4.3x | 4.5x | ||||||||||||
– trailing 12 months | 4.2x | 4.3x | 4.2x | 4.3x |
Property/Submarket | RSF | ||
2021-2022 Pre-construction and future: | |||
Pre-construction: | |||
88 Bluxome Street/Mission Bay/SoMa | 232,470 | ||
Future: | |||
960 Industrial Road/Greater Stanford | 110,000 | ||
99 A Street/Seaport Innovation District | 8,715 | ||
118,715 | |||
351,185 | |||
Future: | |||
219 East 42nd Street/New York City | 349,947 | ||
4161 Campus Point Court/University Town Center | 159,884 | ||
10260 Campus Point Drive/University Town Center | 109,164 | ||
4045 Sorrento Valley Boulevard/Sorrento Valley | 10,926 | ||
4075 Sorrento Valley Boulevard/Sorrento Valley | 40,000 | ||
601 Dexter Avenue North/Lake Union | 18,680 | ||
688,601 | |||
Total value-creation RSF currently included in rental properties | 1,039,786 |
September 30, 2017 | December 31, 2016 | June 30, 2019 | December 31, 2018 | |||||||||||
Secured notes payable | $ | 1,153,890 | $ | 1,011,292 | $ | 354,186 | $ | 630,547 | ||||||
Unsecured senior notes payable | 2,801,290 | 2,378,262 | 5,140,914 | 4,292,293 | ||||||||||
Unsecured senior line of credit | 314,000 | 28,000 | 514,000 | 208,000 | ||||||||||
Unsecured senior bank term loans | 547,860 | 746,471 | ||||||||||||
Unsecured senior bank term loan | 347,105 | 347,415 | ||||||||||||
Unamortized deferred financing costs | 27,803 | 29,917 | 36,905 | 31,413 | ||||||||||
Cash and cash equivalents | (118,562 | ) | (125,032 | ) | (198,909 | ) | (234,181 | ) | ||||||
Restricted cash | (27,713 | ) | (16,334 | ) | (39,316 | ) | (37,949 | ) | ||||||
Net debt | $ | 4,698,568 | $ | 4,052,576 | $ | 6,154,885 | $ | 5,237,538 | ||||||
Net debt | $ | 4,698,568 | $ | 4,052,576 | $ | 6,154,885 | $ | 5,237,538 | ||||||
7.00% Series D cumulative convertible preferred stock | 74,386 | 86,914 | 57,461 | 64,336 | ||||||||||
6.45% Series E cumulative redeemable preferred stock | — | 130,000 | ||||||||||||
Net debt and preferred stock | $ | 4,772,954 | $ | 4,269,490 | $ | 6,212,346 | $ | 5,301,874 | ||||||
Adjusted EBITDA: | ||||||||||||||
– quarter annualized | $ | 773,828 | $ | 662,836 | $ | 1,063,056 | $ | 968,888 | ||||||
– trailing 12 months | $ | 728,869 | $ | 610,839 | $ | 1,004,724 | $ | 937,906 | ||||||
Net debt to Adjusted EBITDA: | ||||||||||||||
– quarter annualized | 6.1 | x | 6.1 | x | 5.8 | x | 5.4 | x | ||||||
– trailing 12 months | 6.4 | x | 6.6 | x | 6.1 | x | 5.6 | x | ||||||
Net debt and preferred stock to Adjusted EBITDA: | ||||||||||||||
– quarter annualized | 6.2 | x | 6.4 | x | 5.8 | x | 5.5 | x | ||||||
– trailing 12 months | 6.5 | x | 7.0 | x | 6.2 | x | 5.7 | x |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||
Net income (loss) | $ | 59,546 | $ | 28,559 | $ | 148,597 | $ | (69,591 | ) | |||||||||||||||||||||||
Net income | $ | 87,179 | $ | 60,547 | $ | 223,997 | $ | 202,065 | ||||||||||||||||||||||||
Equity in (earnings) losses of unconsolidated real estate joint ventures | (14,100 | ) | (273 | ) | (15,050 | ) | 270 | |||||||||||||||||||||||||
Equity in earnings of unconsolidated real estate joint ventures | (1,262 | ) | (1,090 | ) | (2,408 | ) | (2,234 | ) | ||||||||||||||||||||||||
General and administrative expenses | 17,636 | 15,854 | 56,099 | 46,426 | 26,434 | 22,939 | 51,111 | 45,360 | ||||||||||||||||||||||||
Interest expense | 31,031 | 25,850 | 92,563 | 75,730 | 42,879 | 38,097 | 81,979 | 75,012 | ||||||||||||||||||||||||
Depreciation and amortization | 107,788 | 77,133 | 309,069 | 218,168 | 134,437 | 118,852 | 268,524 | 233,071 | ||||||||||||||||||||||||
Impairment of real estate | — | 8,114 | 203 | 193,237 | — | 6,311 | — | 6,311 | ||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 3,230 | 670 | 3,230 | — | — | 7,361 | — | ||||||||||||||||||||||||
Gain on sales of real estate – rental properties | — | — | (270 | ) | — | |||||||||||||||||||||||||||
Gain on sales of real estate – land parcels | — | (90 | ) | (111 | ) | (90 | ) | |||||||||||||||||||||||||
Investment income | (21,500 | ) | (12,530 | ) | (105,056 | ) | (98,091 | ) | ||||||||||||||||||||||||
Net operating income | $ | 201,901 | $ | 158,377 | $ | 591,770 | $ | 467,380 | 268,167 | 233,126 | 525,508 | 461,494 | ||||||||||||||||||||
Straight-line rent revenue | (25,476 | ) | (23,259 | ) | (52,441 | ) | (55,890 | ) | ||||||||||||||||||||||||
Amortization of acquired below-market leases | (8,054 | ) | (5,198 | ) | (15,202 | ) | (11,368 | ) | ||||||||||||||||||||||||
Net operating income (cash basis) | $ | 234,637 | $ | 204,669 | $ | 457,865 | $ | 394,236 | ||||||||||||||||||||||||
Revenues | $ | 285,370 | $ | 230,379 | $ | 829,306 | $ | 672,544 | ||||||||||||||||||||||||
Net operating income (cash basis) – annualized | $ | 938,548 | $ | 818,676 | $ | 915,730 | $ | 788,472 | ||||||||||||||||||||||||
Net operating income (from above) | $ | 268,167 | $ | 233,126 | $ | 525,508 | $ | 461,494 | ||||||||||||||||||||||||
Total revenues | $ | 373,856 | $ | 325,034 | $ | 732,698 | $ | 645,173 | ||||||||||||||||||||||||
Operating margin | 71% | 69% | 71% | 69% | 72% | 72% | 72% | 72% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Income from rentals | $ | 371,618 | $ | 322,794 | $ | 726,367 | $ | 640,449 | ||||||||
Rental revenues | (289,625 | ) | (250,635 | ) | (564,188 | ) | (495,120 | ) | ||||||||
Tenant recoveries | $ | 81,993 | $ | 72,159 | $ | 162,179 | $ | 145,329 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
Unencumbered net operating income | $ | 164,291 | $ | 137,943 | $ | 479,754 | $ | 400,027 | $ | 251,397 | $ | 204,843 | $ | 494,588 | $ | 403,442 | ||||||||||||||
Encumbered net operating income | 37,610 | 20,434 | 112,016 | 67,353 | 16,770 | 28,283 | 30,920 | 58,052 | ||||||||||||||||||||||
Total net operating income | $ | 201,901 | $ | 158,377 | $ | 591,770 | $ | 467,380 | $ | 268,167 | $ | 233,126 | $ | 525,508 | $ | 461,494 | ||||||||||||||
Unencumbered net operating income as a percentage of total net operating income | 81% | 87% | 81% | 86% | 94% | 88% | 94% | 87% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Weighted-average shares of common stock outstanding: | |||||||||||
Basic shares for EPS | 111,433 | 101,881 | 111,245 | 100,878 | |||||||
Outstanding forward equity sales agreements | 68 | 355 | 34 | 313 | |||||||
Series D Convertible Preferred Stock | — | — | — | — | |||||||
Diluted shares for EPS | 111,501 | 102,236 | 111,279 | 101,191 | |||||||
Basic shares for EPS | 111,433 | 101,881 | 111,245 | 100,878 | |||||||
Outstanding forward equity sales agreements | 68 | 355 | 34 | 313 | |||||||
Series D Convertible Preferred Stock | 576 | — | 578 | 742 | |||||||
Diluted shares for FFO | 112,077 | 102,236 | 111,857 | 101,933 | |||||||
Basic shares for EPS | 111,433 | 101,881 | 111,245 | 100,878 | |||||||
Outstanding forward equity sales agreements | 68 | 355 | 34 | 313 | |||||||
Series D Convertible Preferred Stock | — | — | — | — | |||||||
Diluted shares for FFO, as adjusted | 111,501 | 102,236 | 111,279 | 101,191 |
Annualized effect on future earnings due to variable-rate debt: | ||||||
Rate increase of 1% | $ | (4,509 | ) | $ | (3,509 | ) |
Rate decrease of 1% | $ | 4,509 | $ | 3,509 | ||
Effect on fair value of total consolidated debt and interest rate hedge agreements: | ||||||
Rate increase of 1% | $ | (201,681 | ) | $ | (323,769 | ) |
Rate decrease of 1% | $ | 216,680 | $ | 356,560 |
Equity price risk: | ||||||
Fair value increase of 10% | $ | 48,526 | $ | 105,785 | ||
Fair value decrease of 10% | $ | (48,526 | ) | $ | (105,785 | ) |
Effect of potential future earnings due to foreign currency exchange rate: | ||||||
Effect on potential future earnings due to foreign currency exchange rate: | ||||||
Rate increase of 10% | $ | 70 | $ | 10 | ||
Rate decrease of 10% | $ | (70 | ) | $ | (10 | ) |
Effect on the fair value of net investment in foreign subsidiaries due to foreign currency exchange rate: | ||||||
Rate increase of 10% | $ | 12,184 | $ | 10,063 | ||
Rate decrease of 10% | $ | (12,184 | ) | $ | (10,063 | ) |
Exhibit Number | Exhibit Title | Incorporated by Reference to: | Date Filed | |||
3.1* | Form 10-Q | August 14, 1997 | ||||
3.2* | Form 10-Q | August 14, 1997 | ||||
3.3* | Form 8-K | May 12, 2017 | ||||
3.4* | Form 8-K | |||||
3.5* | Form 10-Q | August 13, 1999 | ||||
3.6* | Form 8-K | February 10, 2000 | ||||
3.7* | Form 8-K | February 10, 2000 | ||||
3.8* | Form 8-A | January 18, 2002 | ||||
3.9* | Form 8-A | June 28, 2004 | ||||
3.10* | Form 8-K | March 25, 2008 | ||||
3.11* | Form 8-K | March 14, 2012 | ||||
3.12* | Form 8-K | May 12, 2017 | ||||
4.1* | Form 10-Q | May 5, 2011 | ||||
4.2* | Form 8-K | March 25, 2008 | ||||
N/A | Filed herewith | |||||
31.1 | N/A | Filed herewith | ||||
31.2 | N/A | Filed herewith | ||||
31.3 | N/A | Filed herewith | ||||
31.4 | N/A | Filed herewith | ||||
N/A | Filed herewith |
The following materials from the Company’s quarterly report on Form 10-Q for the | N/A | Filed herewith |
ALEXANDRIA REAL ESTATE EQUITIES, INC. | |
/s/ Joel S. Marcus | |
Joel S. Marcus (Principal Executive Officer) | |
/s/ Stephen A. Richardson | |
Stephen A. Richardson Co-Chief Executive Officer (Principal Executive Officer) | |
/s/ Peter M. Moglia | |
Peter M. Moglia Co-Chief Executive Officer and Co-Chief Investment Officer (Principal Executive Officer) | |
/s/ Dean A. Shigenaga | |
Dean A. Shigenaga Co-President and Chief Financial Officer (Principal Financial Officer) |