Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'ALEXANDRIA REAL ESTATE EQUITIES INC | ' |
Entity Central Index Key | '0001035443 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 71,627,655 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investments in real estate, net | $6,613,761 | $6,424,578 |
Cash and cash equivalents | 53,839 | 140,971 |
Restricted cash | 30,654 | 39,947 |
Tenant receivables | 8,671 | 8,449 |
Deferred rent | 182,909 | 170,396 |
Deferred leasing and financing costs, net | 179,805 | 160,048 |
Investments | 129,163 | 115,048 |
Other assets | 159,567 | 90,679 |
Total assets | 7,358,369 | 7,150,116 |
Liabilities, Noncontrolling Interests, and Equity | ' | ' |
Secured notes payable | 708,653 | 716,144 |
Unsecured senior notes payable | 1,048,190 | 549,805 |
Unsecured senior line of credit | 14,000 | 566,000 |
Unsecured senior bank term loans | 1,100,000 | 1,350,000 |
Accounts payable, accrued expenses, and tenant security deposits | 452,139 | 423,708 |
Dividends payable | 54,413 | 41,401 |
Total liabilities | 3,377,395 | 3,647,058 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interests | 14,475 | 14,564 |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity: | ' | ' |
Series D cumulative convertible preferred stock | 250,000 | 250,000 |
Series E cumulative redeemable preferred stock | 130,000 | 130,000 |
Common stock | 711 | 632 |
Additional paid-in capital | 3,578,343 | 3,086,052 |
Accumulated other comprehensive loss | -40,026 | -24,833 |
Alexandria’s stockholders’ equity | 3,919,028 | 3,441,851 |
Noncontrolling interests | 47,471 | 46,643 |
Total equity | 3,966,499 | 3,488,494 |
Total liabilities, noncontrolling interests, and equity | $7,358,369 | $7,150,116 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues: | ' | ' | ' | ' | ||||
Rental | $116,302 | $106,216 | $342,821 | $311,746 | ||||
Tenant recoveries | 38,757 | 34,006 | 110,291 | 97,769 | ||||
Other income | 3,571 | 2,628 | 10,133 | 14,639 | ||||
Total revenues | 158,630 | 142,850 | 463,245 | 424,154 | ||||
Expenses: | ' | ' | ' | ' | ||||
Rental operations | 47,742 | 44,203 | 139,289 | 126,758 | ||||
General and administrative | 11,666 | 12,470 | 35,786 | 35,125 | ||||
Interest | 16,171 | 17,092 | 50,169 | 51,240 | ||||
Depreciation and amortization | 49,102 | 46,584 | 141,747 | 139,111 | ||||
Loss on early extinguishment of debt | 1,432 | 0 | 1,992 | 2,225 | ||||
Total expenses | 126,113 | 120,349 | 368,983 | 354,459 | ||||
Income from continuing operations | 32,517 | 22,501 | 94,262 | 69,695 | ||||
(Loss) income from discontinued operations: | ' | ' | ' | ' | ||||
(Loss) income from discontinued operations before impairment of real estate | -64 | 5,603 | 993 | 14,961 | ||||
Impairment of real estate | 0 | -9,799 | 0 | -9,799 | ||||
(Loss) income from discontinued operations, net | -64 | [1] | -4,196 | [1] | 993 | [1] | 5,162 | [1] |
Gain on sale of land parcel | 0 | 0 | 772 | 1,864 | ||||
Net income | 32,453 | 18,305 | 96,027 | 76,721 | ||||
Net income attributable to noncontrolling interests | 960 | 828 | 2,922 | 2,390 | ||||
Dividends on preferred stock | 6,472 | 6,471 | 19,414 | 20,857 | ||||
Preferred stock redemption charge | 0 | 0 | 0 | 5,978 | ||||
Net income attributable to unvested restricted stock awards | 442 | 360 | 1,187 | 866 | ||||
Net income attributable to Alexandria’s common stockholders | $24,579 | $10,646 | $72,504 | $46,630 | ||||
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ' | ' | ' | ' | ||||
Continuing operations | $0.35 | $0.24 | $1.07 | $0.67 | ||||
Discontinued operations, net | $0 | ($0.07) | $0.01 | $0.08 | ||||
Earnings per share – basic and diluted | $0.35 | $0.17 | $1.08 | $0.75 | ||||
[1] | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale†as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $32,453 | $18,305 | $96,027 | $76,721 |
Unrealized gains (losses) on marketable securities: | ' | ' | ' | ' |
Unrealized holding (losses) gains arising during the period | -37 | 796 | 323 | 1,363 |
Reclassification adjustment for gains included in net income | -250 | -1,421 | -480 | -2,107 |
Unrealized gains (losses) on marketable securities, net | -287 | -625 | -157 | -744 |
Unrealized gains (losses) on interest rate swaps: | ' | ' | ' | ' |
Unrealized interest rate swap losses arising during the period | -676 | -2,818 | -704 | -9,982 |
Reclassification adjustment for amortization of interest expense included in net income | 3,904 | 5,956 | 12,046 | 17,626 |
Unrealized gains (losses) on interest rate swaps, net | 3,228 | 3,138 | 11,342 | 7,644 |
Foreign currency translation (losses) gains | -3,404 | 15,104 | -26,461 | 7,871 |
Total other comprehensive (loss) income | -463 | 17,617 | -15,276 | 14,771 |
Comprehensive income | 31,990 | 35,922 | 80,751 | 91,492 |
Less: comprehensive income attributable to noncontrolling interests | -933 | -805 | -2,839 | -2,379 |
Comprehensive income attributable to Alexandria’s common stockholders | $31,057 | $35,117 | $77,912 | $89,113 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity and Noncontrolling Interests (Unaudited) (USD $) | Total | Series D Cumulative Convertible Preferred Stock | Series E Cumulative Redeemable Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Redeemable Noncontrolling Interests |
In Thousands, except Share data, unless otherwise specified | |||||||||
Beginning balance at Dec. 31, 2012 | $3,488,494 | $250,000 | $130,000 | $632 | $3,086,052 | $0 | ($24,833) | $46,643 | $14,564 |
Beginning balance (in shares) at Dec. 31, 2012 | ' | ' | ' | 63,244,645 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 95,223 | ' | ' | ' | ' | 93,105 | ' | 2,118 | 804 |
Total other comprehensive income (loss) | -15,276 | ' | ' | ' | ' | ' | -15,193 | -83 | 0 |
Distributions to noncontrolling interests | -1,207 | ' | ' | ' | ' | ' | ' | -1,207 | -893 |
Issuance of common stock (in shares) | ' | ' | ' | 7,590,000 | ' | ' | ' | ' | ' |
Issuance of common stock | 534,677 | ' | ' | 76 | 534,601 | ' | ' | ' | ' |
Issuances pursuant to stock plan (in shares) | ' | ' | ' | 246,283 | ' | ' | ' | ' | ' |
Issuances pursuant to stock plan | 17,390 | ' | ' | 3 | 17,387 | ' | ' | ' | ' |
Dividends declared on common stock | -133,388 | ' | ' | ' | ' | -133,388 | ' | ' | ' |
Dividends declared on preferred stock | -19,414 | ' | ' | ' | ' | -19,414 | ' | ' | ' |
Distributions in excess of earnings | ' | ' | ' | ' | -59,697 | 59,697 | ' | ' | ' |
Ending balance at Sep. 30, 2013 | $3,966,499 | $250,000 | $130,000 | $711 | $3,578,343 | $0 | ($40,026) | $47,471 | $14,475 |
Ending balance (in shares) at Sep. 30, 2013 | ' | ' | ' | 71,080,928 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Activities | ' | ' |
Net income | $96,027 | $76,721 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 142,677 | 143,933 |
Loss on early extinguishment of debt | 1,992 | 2,225 |
Gain on sale of land parcel | -772 | -1,864 |
Loss (gain) on sale of real estate | 121 | -1,564 |
Non-cash impairment of real estate | 0 | 9,799 |
Amortization of loan fees and costs | 7,300 | 7,327 |
Amortization of debt premiums/discounts | 383 | 401 |
Amortization of acquired above and below market leases | -2,490 | -2,356 |
Deferred rent | -20,007 | -19,216 |
Stock compensation expense | 11,541 | 10,412 |
Equity in loss related to investments | 0 | 26 |
Gain on sales of investments | -4,716 | -12,316 |
Loss on sales of investments | 529 | 1,607 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | 1,243 | 441 |
Tenant receivables | -271 | -2,637 |
Deferred leasing costs | -37,190 | -23,597 |
Other assets | -11,428 | -3,230 |
Accounts payable, accrued expenses, and tenant security deposits | 51,437 | 41,378 |
Net cash provided by operating activities | 236,376 | 227,490 |
Investing Activities | ' | ' |
Proceeds from sale of properties | 101,815 | 36,179 |
Additions to properties | -450,140 | -406,066 |
Purchase of properties | -24,537 | -42,171 |
Change in restricted cash related to construction projects | 5,711 | -11,453 |
Distribution from unconsolidated real estate entity | 0 | 22,250 |
Contributions to unconsolidated real estate entity | -13,881 | -5,042 |
Additions to investments | -22,835 | -21,997 |
Proceeds from investments | 12,750 | 19,905 |
Net cash used in investing activities | -391,117 | -408,395 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 26,319 | 2,874 |
Repayments of borrowings from secured notes payable | -34,120 | -8,125 |
Proceeds from issuance of unsecured senior notes payable | 498,561 | 549,533 |
Principal borrowings from unsecured senior line of credit and unsecured senior bank term loans | 319,000 | 623,147 |
Repayments of borrowings from unsecured senior line of credit | -871,000 | -580,147 |
Repayment of unsecured senior bank term loan | -250,000 | -250,000 |
Repurchase of unsecured senior convertible notes | -384 | -84,801 |
Redemption of Series C Cumulative Redeemable Preferred Stock | 0 | -129,638 |
Proceeds from issuance of Series E Cumulative Redeemable Preferred Stock | 0 | 124,868 |
Change in restricted cash related to financings | 923 | -10,476 |
Deferred financing costs paid | -16,247 | -25,301 |
Proceeds from common stock offering | 535,686 | 98,443 |
Proceeds from exercise of stock options | 0 | 155 |
Dividends paid on common stock | -120,367 | -92,743 |
Dividends paid on preferred stock | -19,414 | -21,348 |
Distributions to redeemable noncontrolling interests | 0 | -943 |
Redemption of redeemable noncontrolling interests | 0 | -150 |
Contributions by noncontrolling interests | 0 | 1,626 |
Distributions to noncontrolling interests | -2,100 | -770 |
Net cash provided by financing activities | 66,857 | 196,204 |
Effect of foreign exchange rate changes on cash and cash equivalents | 752 | 1,066 |
Net increase (decrease) in cash and cash equivalents | -87,132 | 16,365 |
Cash and cash equivalents at beginning of period | 140,971 | 78,539 |
Cash and cash equivalents at end of period | 53,839 | 94,904 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 34,281 | 30,485 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | $38,820 | $6,125 |
Background_Notes
Background (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Background | ' |
Background | ' |
Background | |
As used in this quarterly report on Form 10-Q, references to the “Company,” “Alexandria,” “we,” “our,” and “us” refer to Alexandria Real Estate Equities, Inc. and its subsidiaries. | |
Alexandria Real Estate Equities, Inc. (NYSE: ARE), a self-administered and self-managed investment-grade real estate investment trust (“REIT”), is the largest and leading REIT focused principally on owning, operating, developing, redeveloping, and acquiring high-quality, sustainable real estate for the broad and diverse life science industry. Alexandria’s client tenants span the life science industry, including renowned academic and medical institutions, multinational pharmaceutical companies, public and private biotechnology entities, United States (“U.S.”) government research agencies, medical device companies, industrial biotech companies, venture capital firms, and life science product and service companies. For additional information on Alexandria Real Estate Equities, Inc., please visit www.are.com. |
Basis_of_presentation_Notes
Basis of presentation (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
Basis of presentation | |
We have prepared the accompanying interim consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, the interim consolidated financial statements presented herein reflect all adjustments that are necessary to fairly present the interim consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2012. | |
The accompanying consolidated financial statements include the accounts of Alexandria Real Estate Equities, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated. | |
We hold interests, together with certain third parties, in companies that we consolidate in our financial statements. We consolidate the companies because we exercise significant control over major decisions by these entities, such as investment activity and changes in financing. | |
Use of estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, and equity; the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements; and the amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. | |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Investments in real estate, net, and discontinued operations | |
We recognize assets acquired (including the intangible value of above or below market leases, acquired in-place leases, client tenant relationships, and other intangible assets or liabilities), liabilities assumed, and any noncontrolling interest in an acquired entity at their fair value as of the acquisition date. If there is a bargain fixed rate renewal option for the period beyond the non-cancelable lease term, we evaluate factors such as the business conditions in the industry in which the lessee operates, the economic conditions in the area in which the property is located, and the ability of the lessee to sublease the property during the renewal term, in order to determine the likelihood that the lessee will renew. When we determine there is reasonable assurance that such bargain purchase option will be exercised, we consider its impact in determining the intangible value of such lease and its related amortization period. The value of tangible assets acquired is based upon our estimation of value on an “as if vacant” basis. The value of acquired in-place leases includes the estimated carrying costs during the hypothetical lease-up period and other costs that would have been incurred in the execution of similar leases, considering market conditions at the acquisition date of the acquired in-place lease. We assess the fair value of tangible and intangible assets based on numerous factors, including estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including the historical operating results, known trends, and market/economic conditions that may affect the property. We also recognize the fair values of assets acquired, the liabilities assumed, and any noncontrolling interest in acquisitions of less than a 100% interest when the acquisition constitutes a change in control of the acquired entity. Acquisition-related costs and restructuring costs are expensed as incurred. | |
The values allocated to land improvements, tenant improvements, equipment, buildings, and building improvements are depreciated on a straight-line basis using an estimated life of 20 years for land improvements, the respective lease term for tenant improvements, the estimated useful life for equipment, and the shorter of the term of the respective ground lease and up to 40 years for buildings and building improvements. The values of acquired above and below market leases are amortized over the lives of the related leases and recognized as either an increase (for below market leases) or a decrease (for above market leases) to rental income. The values of acquired in-place leases are classified in other assets in the accompanying consolidated balance sheets, and amortized over the remaining terms of the related leases. | |
We are required to capitalize project costs, including predevelopment costs, interest, property taxes, insurance, and other costs directly related and essential to the acquisition, development, redevelopment, or construction of a project. Capitalization of development, redevelopment, and construction costs is required while activities are ongoing to prepare an asset for its intended use. Fluctuations in our development, redevelopment, and construction activities could result in significant changes to total expenses and net income. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Should development, redevelopment, or construction activity cease, interest, property taxes, insurance, and certain other costs would no longer be eligible for capitalization and would be expensed as incurred. Expenditures for repairs and maintenance are expensed as incurred. | |
A property is classified as “held for sale” when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the property; (2) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (4) the sale of the property is probable and is expected to be completed within one year; (5) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all of these criteria have been met, the property is classified as “held for sale.” If (1) the operations and cash flows of the property have been or will be eliminated from the ongoing operations; and (2) we will not have any significant continuing involvement in the operations of the property after the sale, then its operations, including any interest expense directly attributable to it, are classified as discontinued operations in our consolidated statements of income, and amounts for all prior periods presented are reclassified from continuing operations to discontinued operations. Depreciation of assets ceases upon designation of a property as “held for sale.” | |
Impairment of long-lived assets | |
Long-lived assets to be held and used, including our rental properties, land held for future development, construction in progress, and intangibles, are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used, including our rental properties, land held for future development, and construction in progress, are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. If an impairment loss is not required to be recognized, the recognition of depreciation is adjusted prospectively, as necessary, to reduce the carrying amount of the real estate to its estimated disposition value over the remaining period that the real estate is expected to be held and used. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. | |
We use a “held for sale” impairment model for our properties classified as “held for sale.” The “held for sale” impairment model is different from the held and used impairment model. Under the “held for sale” impairment model, an impairment loss is recognized if the carrying amount of the long-lived asset classified as “held for sale” exceeds its fair value less cost to sell. Because of these two different models, it is possible for a long-lived asset previously classified as held and used to require the recognition of an impairment charge upon classification as “held for sale.” | |
Investments | |
We hold equity investments in certain publicly traded companies and privately held entities primarily involved in the life science industry. All of our investments in actively traded public companies are considered “available for sale” and are reflected in the accompanying consolidated balance sheets at fair value. Fair value has been determined based upon the closing price as of each balance sheet date, with unrealized gains and losses shown as a separate component of comprehensive income. The classification of each investment is determined at the time each investment is made, and such determination is reevaluated at each balance sheet date. The cost of each investment sold is determined by the specific identification method, with net realized gains or losses classified in other income in the accompanying consolidated statements of income. Investments in privately held entities are generally accounted for under the cost method when our interest in the entity is so minor that we have virtually no influence over the entity’s operating and financial policies. Certain investments in privately held entities are accounted for under the equity method when our interest in the entity is not deemed so minor that we have virtually no influence over the entity’s operating and financial policies. Under the equity method of accounting, we recognize our investment initially at cost and adjust the carrying amount of the investment to recognize our share of the earnings or losses of the investee subsequent to the date of our investment. Additionally, we limit our ownership percentage in the voting stock of each individual entity to less than 10%. As of September 30, 2013, and December 31, 2012, our ownership percentage in the voting stock of each individual entity was less than 10%. | |
Individual investments are evaluated for impairment when changes in conditions may indicate an impairment exists. The factors that we consider in making these assessments include market prices, market conditions, available financing, prospects for favorable or unfavorable clinical trial results, new product initiatives, and new collaborative agreements. If there are no identified events or changes in circumstances that would have an adverse effect on our cost method investments, we do not estimate the investment’s fair value. For all of our investments, if a decline in the fair value of an investment below the carrying value is determined to be other than temporary, such investment is written down to its estimated fair value with a non-cash charge to current earnings. | |
Income taxes | |
We are organized and qualify as a REIT pursuant to the Internal Revenue Code of 1986, as amended (the “Code”). Under the Code, a REIT that distributes 100% of its REIT taxable income as a dividend to its shareholders each year and that meets certain other conditions is not subject to federal income taxes, but could be subject to certain state and local taxes. We have distributed 100% or more of our taxable income. Therefore, no provision for federal income taxes is required. We file tax returns, including returns for our subsidiaries, with federal, state, and local jurisdictions, including jurisdictions located in the U.S., Canada, India, China, and other international locations. Our tax returns are subject to examination in various jurisdictions for the calendar years 2008 through 2012. | |
We recognize tax benefits of uncertain tax positions only if it is more likely than not that the tax position will be sustained, based solely on its technical merits, with the taxing authority having full knowledge of all relevant information. The measurement of a tax benefit for an uncertain tax position that meets the “more likely than not” threshold is based on a cumulative probability model under which the largest amount of tax benefit recognized is the amount with a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority having full knowledge of all the relevant information. As of September 30, 2013, there were no unrecognized tax benefits. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. | |
Interest expense and penalties, if any, would be recognized in the first period during which the interest or penalty would begin accruing, according to the provisions of the relevant tax law at the applicable statutory rate of interest. We did not incur tax related interest expense or penalties for the three and nine months ended September 30, 2013. | |
Interest income | |
Interest income was approximately $1.2 million and $1.0 million during the three months ended September 30, 2013 and 2012, respectively. Interest income was approximately $3.5 million and $2.5 million during the nine months ended September 30, 2013 and 2012, respectively. Interest income is classified in other income in the accompanying consolidated statements of income. | |
Recognition of rental income and tenant recoveries | |
Rental income from leases is recognized on a straight-line basis over the respective lease terms. We classify amounts currently recognized as income, and expected to be received in later years, as an asset in deferred rent in the accompanying consolidated balance sheets. Amounts received currently, but recognized as income in future years, are classified in accounts payable, accrued expenses, and tenant security deposits in the accompanying consolidated balance sheets. We commence recognition of rental income at the date the property is ready for its intended use and the client tenant takes possession of or controls the physical use of the property. | |
Tenant recoveries related to reimbursement of real estate taxes, insurance, utilities, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. | |
Tenant receivables consist primarily of amounts due for contractual lease payments, reimbursements of common area maintenance expenses, property taxes, and other expenses recoverable from client tenants. Tenant receivables are expected to be collected within one year. We maintain an allowance for estimated losses that may result from the inability of our client tenants to make payments required under the terms of the lease and for tenant recoveries due. If a client tenant fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the amount of uncollectible rent and deferred rent receivables arising from the straight-lining of rent. As of September 30, 2013, and December 31, 2012, we had no allowance for estimated losses. | |
As of September 30, 2013, approximately 94% of our leases (on a rentable square footage basis) were triple net leases, requiring client tenants to pay substantially all real estate taxes, insurance, utilities, common area expenses, and other operating expenses (including increases thereto) in addition to base rent. Approximately 95% of our leases (on a rentable square footage basis) contained effective annual rent escalations that were either fixed or based on a consumer price index or another index. Additionally, approximately 92% of our leases (on a rentable square footage basis) provided for the recapture of certain capital expenditures. |
Investments_in_real_estate_Not
Investments in real estate (Notes) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate [Abstract] | ' | |||||||
Investments in real estate | ' | |||||||
Investments in real estate | ||||||||
Our investments in real estate, net, consisted of the following as of September 30, 2013, and December 31, 2012 (in thousands): | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
Rental properties: | ||||||||
Land (related to rental properties) | $ | 542,511 | $ | 522,664 | ||||
Buildings and building improvements | 5,315,447 | 4,933,314 | ||||||
Other improvements | 170,078 | 189,793 | ||||||
Rental properties | 6,028,036 | 5,645,771 | ||||||
Less: accumulated depreciation | (915,494 | ) | (875,035 | ) | ||||
Rental properties, net | 5,112,542 | 4,770,736 | ||||||
Construction in progress (“CIP”)/current value-creation projects: | ||||||||
Active development in North America | 594,973 | 431,578 | ||||||
Investment in unconsolidated joint venture | 42,537 | (1) | 28,656 | |||||
Active redevelopment in North America | 24,960 | 199,744 | ||||||
Active development and redevelopment in Asia | 97,319 | 101,602 | ||||||
Generic infrastructure/building improvement projects in North America | 46,227 | 80,599 | ||||||
806,016 | 842,179 | |||||||
Subtotal | 5,918,558 | 5,612,915 | ||||||
Land/future value-creation projects: | ||||||||
Land undergoing predevelopment activities (CIP) in North America | 351,062 | 433,310 | ||||||
Land held for future development in North America | 190,427 | 296,039 | ||||||
Land held for future development/undergoing predevelopment activities (CIP) in Asia | 77,274 | 82,314 | ||||||
Land subject to sale negotiations | 76,440 | — | ||||||
695,203 | 811,663 | |||||||
Investments in real estate, net | $ | 6,613,761 | $ | 6,424,578 | ||||
-1 | The book value for this unconsolidated joint venture represents our equity investment in the project. | |||||||
Investment in unconsolidated real estate entity | ||||||||
We have a 27.5% interest in an unconsolidated joint venture that is currently developing a building totaling 413,536 RSF in the Longwood Medical Area of the Greater Boston market. The project is 37% pre-leased to Dana-Farber Cancer Institute, Inc. Our total investment into this project is approximately$42.5 million as of September 30, 2013. The total project costs are being funded primarily from a $213.2 million non-recourse secured construction loan, of which $75.0 million was drawn and outstanding at September 30, 2013. The loan bears interest at a rate of LIBOR+3.75%, with a floor of 5.25%. This loan has a maturity date of April 1, 2019, assuming the joint venture exercises its two separate one-year options to extend the stated maturity date of April 1, 2017. | ||||||||
We do not qualify as the primary beneficiary of the unconsolidated joint venture since we do not have the power to direct the activities of the entity that most significantly impacts its economic performance. The decisions that most significantly impact the entity’s economic performance require both our consent and that of our partners, including all major operating, investing, and financing decisions, as well as decisions involving major expenditures. Consequently, we do not consolidate this joint venture and we account for our investment under the equity method of accounting. | ||||||||
Land undergoing predevelopment activities (additional CIP) | ||||||||
Land undergoing predevelopment activities is classified as construction in progress and is undergoing activities prior to commencement of vertical construction of above-ground building improvements. We generally will not commence ground-up development of any parcels undergoing predevelopment activities without first securing pre-leasing for such space, except when there is significant market demand for high-quality laboratory facilities. If vertical aboveground construction is not initiated at completion of predevelopment activities, the land parcel will be classified as land held for future development. Our objective with predevelopment is to reduce the time it takes to deliver projects to prospective client tenants. Additionally, during predevelopment, we focus on the design of cost effective buildings with generic laboratory and office infrastructure to accommodate single and multi-tenancy. The largest project included in land undergoing predevelopment consists of our 1.2 million developable square feet at the Alexandria Center™ at Kendall Square in East Cambridge, Massachusetts. | ||||||||
We are required to capitalize project costs, including interest, property taxes, insurance, and other costs directly related and essential to the development or construction of a project during periods when activities necessary to prepare an asset for its intended use are in progress. Predevelopment costs generally include the following activities prior to commencement of vertical construction: | ||||||||
Ÿ | Traditional preconstruction costs including entitlement, design, construction drawings, Building Information Modeling (3-D virtual modeling), budgeting, sustainability and energy optimization reviews, permitting, and planning for all aspects of the project. | |||||||
Ÿ | Site and infrastructure construction costs including belowground site work, utility connections, land grading, drainage, egress and regress access points, foundation, and other costs to prepare the site for vertical construction of aboveground building improvements. For example, site and infrastructure costs for the 1.2 million RSF primarily related to 50 Binney Street and 100 Binney Street of the Alexandria Center™ at Kendall Square are classified as predevelopment prior to commencement of vertical construction. | |||||||
Land held for future development | ||||||||
Land held for future development represents real estate we plan to develop in the future, but on which, as of each period presented, no construction or predevelopment activities were ongoing. In such cases, all predevelopment efforts have been advanced to appropriate stages and no further predevelopment activities are ongoing; therefore, interest, property taxes, insurance, and other costs are expensed as incurred. | ||||||||
Real estate asset sales | ||||||||
During the nine months ended September 30, 2013, we sold seven properties for aggregate consideration of $128.6 million, including four properties sold at a total gain of $271 thousand and three properties sold at a total loss of $392 thousand. The net loss on sales is classified in (loss) income from discontinued operations before impairment of real estate in the accompanying consolidated statements of income. | ||||||||
During the nine months ended September 30, 2013, we sold three parcels of land for aggregate consideration of $18.1 million and recognized gains of $772 thousand, which included a gain of $381 thousand on the sale of two parcels in the San Francisco Bay Area market, and a gain of $391 thousand on the sale of one parcel in the Greater NYC market. These gains are classified in gains on sales of land parcels in the accompanying consolidated statements of income. |
Investments_Notes
Investments (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||
Investments | ' | |||||||||||||||
Investments | ||||||||||||||||
We hold equity investments in certain publicly traded companies and privately held entities primarily involved in the life science industry. Investments in “available for sale” securities with gross unrealized losses as of September 30, 2013, have each been in a continuous unrealized loss position for less than 12 months. We have the ability and intent to hold these investments for a reasonable period of time sufficient for the recovery of our investment. We believe that these unrealized losses are temporary, and accordingly we have not recognized impairment charges related to “available for sale” securities as of September 30, 2013. As of September 30, 2013, and December 31, 2012, there were no unrealized losses in our investments in privately held entities accounted for under the cost method. | ||||||||||||||||
The following table summarizes our investments as of September 30, 2013, and December 31, 2012 (in thousands): | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
“Available-for-sale” securities, cost basis | $ | 1,940 | $ | 1,236 | ||||||||||||
Gross unrealized gains | 1,708 | 1,561 | ||||||||||||||
Gross unrealized losses | (392 | ) | (88 | ) | ||||||||||||
“Available-for-sale” securities, at fair value | 3,256 | 2,709 | ||||||||||||||
Investments accounted for under cost method | 125,901 | 112,333 | ||||||||||||||
Investments accounted for under equity method | 6 | 6 | ||||||||||||||
Total investments | $ | 129,163 | $ | 115,048 | ||||||||||||
The following table outlines our investment income, which is classified in other income in the accompanying consolidated statements of income for the three and nine months ended September 30, 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Gross realized gains | $ | 2,050 | $ | 1,190 | $ | 4,716 | $ | 12,316 | ||||||||
Gross realized losses | — | (518 | ) | (529 | ) | (1,607 | ) | |||||||||
Equity in loss related to equity method investments | — | — | — | (26 | ) | |||||||||||
Investment income | $ | 2,050 | $ | 672 | $ | 4,187 | $ | 10,683 | ||||||||
Amount of gains reclassified from accumulated other comprehensive income to realized gains, net | $ | 250 | $ | 1,421 | $ | 480 | $ | 2,107 | ||||||||
Secured_and_unsecured_senior_d
Secured and unsecured senior debt (Notes) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Secured and unsecured senior debt | ' | |||||||||||||||||||||||||||||||||||||
Secured and unsecured senior debt | ||||||||||||||||||||||||||||||||||||||
The following table summarizes our secured and unsecured senior debts and their respective principal maturities, as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||
Fixed Rate/Hedged | Unhedged | Total | Percentage of Total | Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||||
Variable Rate | Variable Rate | Consolidated | Interest Rate at | Remaining Term | ||||||||||||||||||||||||||||||||||
End of Period (1) | (in years) | |||||||||||||||||||||||||||||||||||||
Secured notes payable, net | $ | 589,126 | $ | 119,527 | $ | 708,653 | 24.7 | % | 5.47 | % | 2.5 | |||||||||||||||||||||||||||
Unsecured senior notes payable, net | 1,048,190 | — | 1,048,190 | 36.5 | 4.29 | 9.1 | ||||||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | — | 14,000 | 14,000 | 0.5 | 1.28 | 5.3 | ||||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | 350,000 | 150,000 | 500,000 | 17.4 | 1.7 | 2.8 | ||||||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | 600,000 | — | 600,000 | 20.9 | 3.3 | 5.3 | ||||||||||||||||||||||||||||||||
Total debt / weighted average | $ | 2,587,316 | $ | 283,527 | $ | 2,870,843 | 100 | % | 3.91 | % | 5.5 | |||||||||||||||||||||||||||
Percentage of total debt | 90 | % | 10 | % | 100 | % | ||||||||||||||||||||||||||||||||
-1 | Represents the weighted average contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | |||||||||||||||||||||||||||||||||||||
The following table summarizes our outstanding consolidated indebtedness as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||
Stated | Weighted Average | Maturity Date(2) | Remaining for the Period Ending December 31, | |||||||||||||||||||||||||||||||||||
Debt | Rate | Interest Rate(1) | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||||||||||
Secured notes payable | ||||||||||||||||||||||||||||||||||||||
Greater Boston | 5.26 | % | 5.59 | % | 4/1/14 | $ | 979 | $ | 208,683 | $ | — | $ | — | $ | — | $ | — | $ | 209,662 | |||||||||||||||||||
Suburban Washington, D.C. | 2.17 | 2.17 | 4/20/14 | (3) | — | 76,000 | — | — | — | — | 76,000 | |||||||||||||||||||||||||||
San Diego | 6.05 | 4.88 | 7/1/14 | 24 | 6,458 | — | — | — | — | 6,482 | ||||||||||||||||||||||||||||
San Diego | 5.39 | 4 | 11/1/14 | 30 | 7,495 | — | — | — | — | 7,525 | ||||||||||||||||||||||||||||
Seattle | 6 | 6 | 11/18/14 | 60 | 240 | — | — | — | — | 300 | ||||||||||||||||||||||||||||
Suburban Washington, D.C. | 5.64 | 4.5 | 6/1/15 | 22 | 138 | 5,788 | — | — | — | 5,948 | ||||||||||||||||||||||||||||
Greater Boston, San Diego, and Greater New York City | 5.73 | 5.73 | 1/1/16 | 416 | 1,713 | 1,816 | 75,501 | — | — | 79,446 | ||||||||||||||||||||||||||||
Greater Boston, San Diego, and Greater NYC | 5.82 | 5.82 | 4/1/16 | 221 | 931 | 988 | 29,389 | — | — | 31,529 | ||||||||||||||||||||||||||||
San Francisco Bay Area | 6.35 | 6.35 | 8/1/16 | 580 | 2,487 | 2,652 | 126,715 | — | — | 132,434 | ||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | 1.69 | 7/1/15 | (4) | — | — | 43,227 | — | — | — | 43,227 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | 1.59 | 6/1/16 | (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Greater Boston | L+1.35 | 1.54 | 8/23/17 | (6) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
San Diego, Suburban Washington, D.C., and Seattle | 7.75 | 7.75 | 4/1/20 | 345 | 1,453 | 1,570 | 1,696 | 1,832 | 108,469 | 115,365 | ||||||||||||||||||||||||||||
San Francisco Bay Area | 6.5 | 6.5 | 6/1/37 | — | 17 | 18 | 19 | 20 | 773 | 847 | ||||||||||||||||||||||||||||
Average/Total | 5.41 | % | 5.47 | 2,677 | 305,615 | 56,059 | 233,320 | 1,852 | 109,242 | 708,765 | ||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | L+1.10 | % | (7) | 1.28 | 1/3/19 | — | — | — | — | — | 14,000 | 14,000 | ||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.7 | 7/31/16 | — | — | — | 500,000 | — | — | 500,000 | |||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 3.3 | 1/3/19 | — | — | — | — | — | 600,000 | 600,000 | |||||||||||||||||||||||||||
Unsecured senior notes payable | 4.6 | % | 4.61 | 4/1/22 | — | — | — | — | — | 550,000 | 550,000 | |||||||||||||||||||||||||||
Unsecured senior notes payable | 3.9 | % | 3.94 | 6/15/23 | — | — | — | — | — | 500,000 | 500,000 | |||||||||||||||||||||||||||
Average/Subtotal | 3.91 | 2,677 | 305,615 | 56,059 | 733,320 | 1,852 | 1,773,242 | 2,872,765 | ||||||||||||||||||||||||||||||
Unamortized discounts | — | (146 | ) | (199 | ) | (139 | ) | (177 | ) | (184 | ) | (1,077 | ) | (1,922 | ) | |||||||||||||||||||||||
Average/Total | 3.91 | % | $ | 2,531 | $ | 305,416 | $ | 55,920 | $ | 733,143 | $ | 1,668 | $ | 1,772,165 | $ | 2,870,843 | ||||||||||||||||||||||
Balloon payments | $ | — | $ | 297,080 | $ | 48,955 | $ | 730,029 | $ | — | $ | 1,768,352 | $ | 2,844,416 | ||||||||||||||||||||||||
Principal amortization | 2,531 | 8,336 | 6,965 | 3,114 | 1,668 | 3,813 | 26,427 | |||||||||||||||||||||||||||||||
Total consolidated debt | $ | 2,531 | $ | 305,416 | $ | 55,920 | $ | 733,143 | $ | 1,668 | $ | 1,772,165 | $ | 2,870,843 | ||||||||||||||||||||||||
Fixed rate/hedged variable rate debt | $ | 2,471 | $ | 229,176 | $ | 12,693 | $ | 583,143 | $ | 1,668 | $ | 1,758,165 | $ | 2,587,316 | ||||||||||||||||||||||||
Unhedged variable rate debt | 60 | 76,240 | 43,227 | 150,000 | — | 14,000 | 283,527 | |||||||||||||||||||||||||||||||
Total consolidated debt | $ | 2,531 | $ | 305,416 | $ | 55,920 | $ | 733,143 | $ | 1,668 | $ | 1,772,165 | $ | 2,870,843 | ||||||||||||||||||||||||
-1 | Represents the weighted average contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | |||||||||||||||||||||||||||||||||||||
-2 | Includes any extension options that we control. | |||||||||||||||||||||||||||||||||||||
-3 | We are having discussions with the lender on an extension of the maturity date. | |||||||||||||||||||||||||||||||||||||
-4 | Secured construction loan with aggregate commitments of $55.0 million. We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. | |||||||||||||||||||||||||||||||||||||
-5 | Secured construction loan with aggregate commitments of $33.0 million. We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. As of September 30, 2013, we had not drawn on the loan. | |||||||||||||||||||||||||||||||||||||
-6 | Secured construction loan with aggregate commitments of $245.4 million. We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. As of September 30, 2013, we had not drawn on the loan. | |||||||||||||||||||||||||||||||||||||
-7 | In addition to the stated rate, the line of credit is subject to an annual facility fee of 0.20%. | |||||||||||||||||||||||||||||||||||||
3.90% Unsecured senior notes payable | ||||||||||||||||||||||||||||||||||||||
In June 2013, we completed a $500.0 million public offering of our unsecured senior notes payable at a stated interest rate of 3.90% (“3.90% Unsecured Senior Notes”). The unsecured senior notes payable were priced at 99.712% of the principal amount with a yield to maturity of 3.94% and are due June 15, 2023. The unsecured senior notes payable are unsecured obligations of the Company and are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., a 100% owned subsidiary of the Company. The unsecured senior notes payable rank equally in right of payment with all other senior unsecured indebtedness. However, the unsecured senior notes payable are effectively subordinated to existing and future mortgages and other secured indebtedness (to the extent of the value of the collateral securing such indebtedness) and to all existing and future preferred equity and liabilities, whether secured or unsecured, of the Company’s subsidiaries, other than Alexandria Real Estate Equities, L.P. We used the net proceeds of this offering initially to prepay $150.0 million of the outstanding principal balance on our unsecured senior bank term loan due in 2016 (“2016 Unsecured Senior Bank Term Loan”), to reduce the outstanding borrowings on our unsecured senior line of credit to zero, and held the remaining proceeds in cash and cash equivalents. As a result of the $150.0 million prepayment, we recognized a loss on early extinguishment of debt related to the write-off of a portion of unamortized loan fees in June 2013, totaling $560 thousand. | ||||||||||||||||||||||||||||||||||||||
Unsecured senior line of credit and unsecured senior bank term loans | ||||||||||||||||||||||||||||||||||||||
On July 26, 2013, we amended our 2016 Unsecured Senior Bank Term Loan to reduce the applicable interest rate margins in respect of the loan thereunder on outstanding borrowings. We extended the maturity of this loan by one month and we expect to repay the loan over the next one to three years. In addition, on August 30, 2013, we amended our $1.5 billion unsecured senior line of credit and our unsecured senior bank term loan due in 2019 (“2019 Unsecured Senior Bank Term Loan”) to reduce the interest rate on outstanding borrowings, extend the maturity dates, and amend certain financial covenants. Also, on August 30, 2013, we amended our 2016 Unsecured Senior Bank Term Loan to conform certain financial covenants to those contained in the amended credit agreement related to our $1.5 billion unsecured senior line of credit and our 2019 Unsecured Senior Bank Term Loan. The maturity dates below reflect any available extension options that we control. | ||||||||||||||||||||||||||||||||||||||
Balance at 9/30/13 | Maturity Date | Applicable Rate | Facility Fee | |||||||||||||||||||||||||||||||||||
Facility | Prior | Amended | Prior | Amended | Prior | Amended | ||||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | $ | 500 | million | Jun-16 | Jul-16 | L +1.75% | L +1.20% | N/A | N/A | |||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | $ | 600 | million | Jan-17 | Jan-19 | L +1.50% | L +1.20% | N/A | N/A | |||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | $ | 14 | million | Apr-17 | Jan-19 | L +1.20% | L +1.10% | 0.25 | % | 0.2 | % | |||||||||||||||||||||||||||
On September 30, 2013, we paid down $100 million on our 2016 Unsecured Senior Bank Term Loan to a total outstanding balance of $500 million. During the three months ended September 30, 2013, in conjunction with the refinancing of our unsecured senior bank term loans and the partial repayment of $100 million of our 2016 Unsecured Senior Bank Term Loan, we recognized a loss on early extinguishment of debt totaling $1.4 million, due to the write-off of unamortized loan fees. | ||||||||||||||||||||||||||||||||||||||
Borrowings under the unsecured senior line of credit will bear interest at a “Eurocurrency Rate” or a “Base Rate” specified in the amended unsecured line of credit agreement, plus, in either case, a specified margin (the “Applicable Margin”). The “Eurocurrency Rate” specified in the amended unsecured line of credit agreement is, as applicable, the rate per annum equal to (i) the London interbank offered rate (“LIBOR”) or a successor rate thereto as approved by the administrative agent for loans denominated in a LIBOR quoted currency (i.e., US Dollars, Euro, Sterling, or Yen), (ii) the average annual yield rates applicable to Canadian dollar banker's acceptances for loans denominated in Canadian dollars, (iii) the Bank Bill Swap Reference Bid rate for loans denominated in Australian dollars, or (iv) the rate designated with respect to the applicable alternative currency for loans denominated in a non-LIBOR quoted currency (other than Canadian or Australian dollars). The “Base Rate” specified in the amended unsecured line of credit agreement means for any day a fluctuating rate per annum equal to the highest of (a) the federal funds rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the Eurocurrency Rate plus 1.00%. The Applicable Margin for LIBOR borrowings under the unsecured senior line of credit as of September 30, 2013, was 1.10%, which is based on our existing credit rating as set by certain rating agencies. As of September 30, 2013, we had $14 million in borrowings outstanding on our $1.5 billion unsecured senior line of credit. Our unsecured senior line of credit is subject to an annual facility fee of 0.20% based on the aggregate commitments outstanding. | ||||||||||||||||||||||||||||||||||||||
In addition, the terms of the unsecured senior line of credit and unsecured senior bank term loan agreements, among other things, limit the ability of the Company, Alexandria Real Estate Equities, L.P., and the Company’s subsidiaries to (i) consummate a merger, or consolidate or sell all or substantially all of the Company’s assets, and (ii) incur certain secured or unsecured indebtedness. Additionally, the terms of the unsecured senior line of credit and unsecured senior bank term loan agreements include a restriction that may limit our ability to pay dividends, including distributions with respect to common stock or other equity interests, during any time a default is continuing, except to enable us to continue to qualify as a REIT for federal income tax purposes. As of September 30, 2013, we were in compliance with all such covenants and there were no limitations pursuant to such covenants. | ||||||||||||||||||||||||||||||||||||||
The following table outlines our interest expense for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Gross interest | $ | 32,959 | $ | 33,855 | $ | 96,668 | $ | 99,094 | ||||||||||||||||||||||||||||||
Capitalized interest | (16,788 | ) | (16,763 | ) | (46,499 | ) | (47,854 | ) | ||||||||||||||||||||||||||||||
Interest expense | $ | 16,171 | $ | 17,092 | $ | 50,169 | $ | 51,240 | ||||||||||||||||||||||||||||||
Construction loan of unconsolidated joint venture | ||||||||||||||||||||||||||||||||||||||
We have a 27.5% interest in an unconsolidated joint venture that is currently developing a building in the Longwood Medical Area of the Greater Boston market, with the construction costs funded primarily from a non-recourse secured construction loan with aggregate commitments of $213.2 million and an outstanding balance of $75.0 million as of September 30, 2013. See Note 3 for further information. |
Interest_rate_swap_agreements_
Interest rate swap agreements (Notes) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Interest rate swap agreements | ' | |||||||||||||||||
Interest rate swap agreements | ||||||||||||||||||
During the nine months ended September 30, 2013 and 2012, our interest rate swap agreements were used primarily to hedge the variable cash flows associated with certain of our existing LIBOR-based variable rate debt, including our unsecured senior line of credit and unsecured senior bank term loans. The ineffective portion of the change in fair value of our interest rate swap agreements is required to be recognized directly in earnings. During the nine months ended September 30, 2013 and 2012, our interest rate swap agreements were 100% effective; because of this, no hedge ineffectiveness was recognized in earnings. The effective portion of changes in the fair values of our interest rate swap agreements that are designated and that qualify as cash flow hedges is classified in accumulated other comprehensive loss. Losses are subsequently reclassified into earnings in the period during which the hedged transactions affect earnings. During the next 12 months, we expect to reclassify approximately $8.5 million in accumulated other comprehensive loss to interest expense as an increase to interest expense. | ||||||||||||||||||
As of September 30, 2013, and December 31, 2012, the fair values of our interest rate swap agreements were classified in accounts payable, accrued expenses, and tenant security deposits based upon their respective fair values, aggregating a liability balance of approximately $9.3 million and $20.7 million, respectively, which included accrued interest and adjustments for non-performance risk, with the offsetting adjustment reflected as unrealized loss in accumulated other comprehensive loss in total equity. Under our interest rate swap agreements, we have no collateral posting requirements. | ||||||||||||||||||
We had the following outstanding interest rate swap agreements that were designated as cash flow hedges of interest rate risk as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||
Interest Pay Rate (1) | Fair Value as of September 30, 2013 | Notional Amount in Effect as of | ||||||||||||||||
Effective Date | Termination Date | 30-Sep-13 | 31-Dec-13 | |||||||||||||||
29-Dec-06 | 31-Mar-14 | 4.99 | % | $ | (1,205 | ) | $ | 50,000 | $ | 50,000 | ||||||||
30-Nov-09 | 31-Mar-14 | 5.015 | % | (1,817 | ) | 75,000 | 75,000 | |||||||||||
30-Nov-09 | 31-Mar-14 | 5.023 | % | (1,820 | ) | 75,000 | 75,000 | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.64 | % | (291 | ) | 250,000 | — | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.64 | % | (291 | ) | 250,000 | — | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.644 | % | (147 | ) | 125,000 | — | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.644 | % | (147 | ) | 125,000 | — | |||||||||||
31-Dec-13 | 31-Dec-14 | 0.977 | % | (1,802 | ) | — | 250,000 | |||||||||||
31-Dec-13 | 31-Dec-14 | 0.976 | % | (1,799 | ) | — | 250,000 | |||||||||||
Total | $ | (9,319 | ) | $ | 950,000 | $ | 700,000 | |||||||||||
-1 | In addition to the interest pay rate, borrowings outstanding under our unsecured senior bank term loans include an applicable margin of 1.20% as of September 30, 2013. |
Fair_value_measurements_Notes
Fair value measurements (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair value measurements | ' | ||||||||||||||||
Fair value measurements | |||||||||||||||||
We are required to disclose fair value information about all financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. We measure and disclose the estimated fair value of financial assets and liabilities utilizing a fair value hierarchy that distinguishes between data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. This hierarchy consists of three broad levels, as follows: (i) quoted prices in active markets for identical assets or liabilities, (ii) “significant other observable inputs,” and (iii) “significant unobservable inputs.” “Significant other observable inputs” can include quoted prices for similar assets or liabilities in active markets, as well as inputs that are observable for the asset or liability, such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. “Significant unobservable inputs” are typically based on an entity’s own assumptions, since there is little, if any, related market activity. In instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level of input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. There were no transfers between the levels in the fair value hierarchy during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||
The following tables set forth the assets and liabilities that we measure at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2013, and December 31, 2012 (in thousands): | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 3,256 | $ | 3,256 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 9,319 | $ | — | $ | 9,319 | $ | — | |||||||||
31-Dec-12 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 2,709 | $ | 2,709 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 20,661 | $ | — | $ | 20,661 | $ | — | |||||||||
The carrying amounts of cash and cash equivalents, restricted cash, tenant receivables, other assets, accounts payable, accrued expenses, and tenant security deposits approximate fair value. Our “available-for-sale” securities and our interest rate swap agreements, respectively, have been recognized at fair value. The fair values of our secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loans were estimated using widely accepted valuation techniques, including discounted cash flow analyses of “significant other observable inputs” such as available market information on discount and borrowing rates with similar terms, maturities, and credit ratings. Because the valuations of our financial instruments are based on these types of estimates, the actual fair value of our financial instruments may differ materially if our estimates do not prove to be accurate. Additionally, the use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. | |||||||||||||||||
As of September 30, 2013, and December 31, 2012, the book and fair values of our marketable securities, interest rate swap agreements, secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loans were as follows (in thousands): | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 3,256 | $ | 3,256 | $ | 2,709 | $ | 2,709 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 9,319 | $ | 9,319 | $ | 20,661 | $ | 20,661 | |||||||||
Secured notes payable | $ | 708,653 | $ | 761,047 | $ | 716,144 | $ | 788,455 | |||||||||
Unsecured senior notes payable | $ | 1,048,190 | $ | 1,028,750 | $ | 549,805 | $ | 593,350 | |||||||||
Unsecured senior line of credit | $ | 14,000 | $ | 13,738 | $ | 566,000 | $ | 567,196 | |||||||||
Unsecured senior bank term loans | $ | 1,100,000 | $ | 1,088,322 | $ | 1,350,000 | $ | 1,405,124 | |||||||||
Earnings_per_share_Notes
Earnings per share (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings per share | ' | |||||||||||||||
Earnings per share | ||||||||||||||||
We use income from continuing operations attributable to Alexandria’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to earnings per share. Pursuant to the presentation and disclosure literature on gains or losses on sales or disposals by REITs and earnings per share required by the SEC and the Financial Accounting Standards Board, gains or losses on sales or disposals by a REIT that do not qualify as discontinued operations are classified below income from discontinued operations in the consolidated statements of income and included in the numerator for the computation of earnings per share for income from continuing operations. | ||||||||||||||||
The land parcels we sold during the nine months ended September 30, 2013 and 2012, did not meet the criteria for classification as discontinued operations because the land parcels did not have significant operations prior to disposition. Accordingly, for the nine months ended September 30, 2013 and 2012, we classified approximately $0.8 million and $1.9 million, respectively, as gain on sales of land parcels below income from discontinued operations, net, in the accompanying consolidated statements of income, and included the gain in income from continuing operations attributable to Alexandria’s common stockholders in the “control number,” or numerator for computation of earnings per share. | ||||||||||||||||
We account for unvested restricted stock awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of earnings per share using the two-class method. Our Series D convertible preferred stock (“Series D Convertible Preferred Stock”) is not a participating security, and is not included in the computation of earnings per share using the two-class method. Under the two-class method, we allocate net income after preferred stock dividends, preferred stock redemption charge, and amounts attributable to noncontrolling interests to common stockholders and unvested restricted stock awards based on their respective participation rights to dividends declared (or accumulated) and undistributed earnings. Diluted earnings per share is computed using the weighted average shares of common stock outstanding determined for the basic earnings per share computation plus the effect of any dilutive securities, including the dilutive effect of stock options using the treasury stock method and potential common shares issuable upon conversion of our 8.00% unsecured senior convertible notes (“8.00% Unsecured Senior Convertible Notes”), during the period the notes were outstanding. | ||||||||||||||||
The table below is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income from continuing operations | $ | 32,517 | $ | 22,501 | $ | 94,262 | $ | 69,695 | ||||||||
Gain on sale of land parcel | — | — | 772 | 1,864 | ||||||||||||
Net income attributable to noncontrolling interests | (960 | ) | (828 | ) | (2,922 | ) | (2,390 | ) | ||||||||
Dividends on preferred stock | (6,472 | ) | (6,471 | ) | (19,414 | ) | (20,857 | ) | ||||||||
Preferred stock redemption charge | — | — | — | (5,978 | ) | |||||||||||
Net income attributable to unvested restricted stock awards | (442 | ) | (360 | ) | (1,187 | ) | (866 | ) | ||||||||
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted | 24,643 | 14,842 | 71,511 | 41,468 | ||||||||||||
(Loss) income from discontinued operations, net | (64 | ) | (4,196 | ) | 993 | 5,162 | ||||||||||
Net income attributable to Alexandria’s common stockholders – basic and diluted | $ | 24,579 | $ | 10,646 | $ | 72,504 | $ | 46,630 | ||||||||
Weighted average shares of common stock outstanding – basic and diluted | 70,900 | 62,364 | 67,040 | 61,847 | ||||||||||||
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ||||||||||||||||
Continuing operations | $ | 0.35 | $ | 0.24 | $ | 1.07 | $ | 0.67 | ||||||||
Discontinued operations, net | — | (0.07 | ) | 0.01 | 0.08 | |||||||||||
Earnings per share – basic and diluted | $ | 0.35 | $ | 0.17 | $ | 1.08 | $ | 0.75 | ||||||||
For purposes of calculating diluted earnings per share, we did not assume conversion of our 8.00% Unsecured Senior Convertible Notes for the three and nine months ended September 30, 2013 and 2012, since the impact was antidilutive to earnings per share attributable to Alexandria’s common stockholders from continuing operations during those periods. | ||||||||||||||||
For purposes of calculating diluted earnings per share, we did not assume conversion of our Series D Convertible Preferred Stock for the three and nine months ended September 30, 2013 and 2012, since the impact was antidilutive to earnings per share attributable to Alexandria’s common stockholders from continuing operations during those periods. |
Net_income_attributable_to_Ale
Net income attributable to Alexandria Real Estate Equities, Inc. (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Net Income (Loss) Attributable to Parent [Abstract] | ' | |||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc. | ' | |||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc. | ||||||||||||||||
The following table shows income from continuing and discontinued operations attributable to Alexandria Real Estate Equities, Inc. for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income from continuing operations | $ | 32,517 | $ | 22,501 | $ | 94,262 | $ | 69,695 | ||||||||
Gain on sale of land parcels | — | — | 772 | 1,864 | ||||||||||||
Less: net income attributable to noncontrolling interests | (960 | ) | (828 | ) | (2,922 | ) | (2,390 | ) | ||||||||
Income from continuing operations attributable to Alexandria | 31,557 | 21,673 | 92,112 | 69,169 | ||||||||||||
(Loss) income from discontinued operations, net | (64 | ) | (4,196 | ) | 993 | 5,162 | ||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income attributable to Alexandria | $ | 31,493 | $ | 17,477 | $ | 93,105 | $ | 74,331 | ||||||||
Stockholders_equity_Notes
Stockholders' equity (Notes) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' equity | ' | |||||||||||||||
Stockholders’ equity | ||||||||||||||||
Secondary offering of common stock | ||||||||||||||||
In May 2013, we sold approximately 7.6 million shares of our common stock in a secondary offering (including 1.0 million shares issued pursuant to the exercise in full of the underwriters’ option to purchase additional shares). The shares were issued at a price of $73.50 per share, resulting in aggregate net proceeds of approximately $535.7 million (after deducting underwriting discounts and commissions). | ||||||||||||||||
“At the market” common stock offering program | ||||||||||||||||
In June 2012, we established an “at the market” common stock offering program under which we may sell, from time to time, up to an aggregate of $250 million of our common stock through our sales agents, BNY Mellon Capital Markets, LLC and Credit Suisse Securities (USA) LLC, during a three-year period. As of September 30, 2013, approximately $150.0 million of our common stock remained available for issuance under the “at the market” common stock offering program. | ||||||||||||||||
Dividends | ||||||||||||||||
In September 2013, we declared cash dividends for the third quarter of 2013, on our common stock aggregating approximately $48.7 million, or $0.68 per share. In September 2013, we also declared cash dividends for the third quarter of 2013, on our Series D Convertible Preferred Stock aggregating approximately $4.4 million, or $0.4375 per share. Additionally, we declared cash dividends for the third quarter of 2013, on our Series E cumulative redeemable preferred stock (“Series E Cumulative Redeemable Preferred Stock”) aggregating approximately $2.1 million, or $0.403125 per share. In October 2013, we paid the cash dividends for the third quarter of 2013, on our common stock, Series D Convertible Preferred Stock, and Series E Cumulative Redeemable Preferred Stock. | ||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria consists of the following (in thousands): | ||||||||||||||||
Unrealized Gain on Marketable Securities | Unrealized Loss on Interest Rate | Unrealized Loss on Foreign Currency Translation | Total | |||||||||||||
Swap Agreements | ||||||||||||||||
Balance as of December 31, 2012 | $ | 1,473 | $ | (20,661 | ) | $ | (5,645 | ) | $ | (24,833 | ) | |||||
Other comprehensive income (loss) before reclassifications | 323 | (704 | ) | (26,378 | ) | (26,759 | ) | |||||||||
Amounts reclassified from other comprehensive income | (480 | ) | 12,046 | — | 11,566 | |||||||||||
Net other comprehensive (loss) income | (157 | ) | 11,342 | (26,378 | ) | (15,193 | ) | |||||||||
Balance as of September 30, 2013 | $ | 1,316 | $ | (9,319 | ) | $ | (32,023 | ) | $ | (40,026 | ) | |||||
The effects on amounts reclassified from accumulated other comprehensive income related to unrealized gain on marketable securities and unrealized loss on interest rate swap agreements are recognized in other income and interest expenses, respectively, in the accompanying consolidated statements of income. | ||||||||||||||||
Preferred stock and excess stock authorizations | ||||||||||||||||
Our charter authorizes the issuance of up to 100 million shares of preferred stock, of which 15.2 million shares were issued and outstanding as of September 30, 2013. In addition, 200 million shares of “excess stock” (as defined in our charter) are authorized, none of which were issued and outstanding as of September 30, 2013. |
Noncontrolling_interests_Notes
Noncontrolling interests (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling interests | ' |
Noncontrolling interests | |
Noncontrolling interests represent the third-party interests in certain entities in which we have a controlling interest. These entities owned 10 properties and three development parcels as of September 30, 2013, and are included in our consolidated financial statements. Noncontrolling interests are adjusted for additional contributions and distributions, the proportionate share of the net earnings or losses, and other comprehensive income or loss. Distributions, profits, and losses related to these entities are allocated in accordance with the respective operating agreements. | |
Certain of our noncontrolling interests have the right to require us to redeem their ownership interests in the respective entities. We classify these ownership interests in the entities as redeemable noncontrolling interests outside of total equity in the accompanying consolidated balance sheets. Redeemable noncontrolling interests are adjusted for additional contributions and distributions, the proportionate share of the net earnings or losses, and other comprehensive income or loss. Distributions, profits, and losses related to these entities are allocated in accordance with the respective operating agreements. If the carrying amount of a redeemable noncontrolling interest is less than the maximum redemption value at the balance sheet date, such amount is adjusted to the maximum redemption value. Subsequent declines in the redemption value are recognized only to the extent that previous increases have been recognized. As of September 30, 2013, and December 31, 2012, our redeemable noncontrolling interest balances were approximately $14.5 million and $14.6 million, respectively. Our remaining noncontrolling interests, aggregating approximately $47.5 million and $46.6 million as of September 30, 2013, and December 31, 2012, respectively, do not have rights to require us to purchase their ownership interests and are classified in total equity in the accompanying consolidated balance sheets. |
Discontinued_operations_Notes
Discontinued operations (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Discontinued operations | ' | ||||||||||||||||
Discontinued operations | |||||||||||||||||
The following is a summary of net assets of discontinued operations and income from discontinued operations, net (in thousands): | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Properties “held for sale,” net | $ | 4,510 | $ | 76,440 | |||||||||||||
Other assets | 14 | 4,546 | |||||||||||||||
Total assets | 4,524 | 80,986 | |||||||||||||||
Total liabilities | (32 | ) | (3,233 | ) | |||||||||||||
Net assets of discontinued operations | $ | 4,492 | $ | 77,753 | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 4 | $ | 8,418 | $ | 3,741 | $ | 26,556 | |||||||||
Operating expenses | 68 | 2,788 | 1,697 | 8,337 | |||||||||||||
Total revenues less operating expenses from discontinued operations | (64 | ) | 5,630 | 2,044 | 18,219 | ||||||||||||
Depreciation expense | — | 1,589 | 930 | 4,822 | |||||||||||||
(Gain) loss on sale of real estate | — | (1,562 | ) | 121 | (1,564 | ) | |||||||||||
Impairment of real estate | — | 9,799 | — | 9,799 | |||||||||||||
(Loss) income from discontinued operations, net (1) | $ | (64 | ) | $ | (4,196 | ) | $ | 993 | $ | 5,162 | |||||||
-1 | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale” as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Subsequent_events_Notes
Subsequent events (Notes) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent events | ' |
Subsequent events | |
Update on our ground-up development at 499 Illinois Street | |
In October 2013, we executed a 10-year lease with a high-quality biopharmaceutical company for 43,625 RSF at 499 Illinois Street in the Mission Bay submarket of the San Francisco Bay Area which is now 77% pre-leased. |
Condensed_consolidating_financ
Condensed consolidating financial information (Notes) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Condensed Consolidated Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information Disclosure | ' | |||||||||||||||||||
Condensed consolidating financial information | ||||||||||||||||||||
Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act, as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP”), an indirectly 100% owned subsidiary of the Issuer. The Company’s other subsidiaries, including, but not limited to, the subsidiaries that own substantially all of its real estate (collectively, the “Combined Non-Guarantor Subsidiaries”) will not provide a guarantee of such securities, including the subsidiaries that are partially or 100% owned by the LP. The following condensed consolidating financial information presents the condensed consolidating balance sheets as of September 30, 2013, and December 31, 2012, the condensed consolidating statements of income and comprehensive income for the three and nine months ended September 30, 2013 and 2012, and the condensed consolidating statements of cash flow for the nine months ended September 30, 2013 and 2012, for the Issuer, the Guarantor Subsidiary (the LP), the Combined Non-Guarantor Subsidiaries, the eliminations necessary to arrive at the information for Alexandria on a consolidated basis, and consolidated amounts. In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Issuer’s interests in the Guarantor Subsidiary and the Combined Non-Guarantor Subsidiaries, (ii) the Guarantor Subsidiary’s interests in the Combined Non-Guarantor Subsidiaries, and (iii) the Combined Non-Guarantor Subsidiaries’ interests in the Guarantor Subsidiary, where applicable, even though all such subsidiaries meet the requirements to be consolidated under GAAP. All intercompany balances and transactions between the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries have been eliminated, as shown in the column “Eliminations.” All assets and liabilities have been allocated to the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries generally based on legal entity ownership. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real Estate Equities, Inc. | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
(Issuer) | Real Estate | Non- | ||||||||||||||||||
Equities, L.P. | Guarantor | |||||||||||||||||||
(Guarantor | Subsidiaries | |||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments in real estate, net | $ | — | $ | — | $ | 6,613,761 | $ | — | $ | 6,613,761 | ||||||||||
Cash and cash equivalents | 14,667 | — | 39,172 | — | 53,839 | |||||||||||||||
Restricted cash | 61 | — | 30,593 | — | 30,654 | |||||||||||||||
Tenant receivables | — | — | 8,671 | — | 8,671 | |||||||||||||||
Deferred rent | — | — | 182,909 | — | 182,909 | |||||||||||||||
Deferred leasing and financing costs, net | 38,462 | — | 141,343 | — | 179,805 | |||||||||||||||
Investments | — | 11,828 | 117,335 | — | 129,163 | |||||||||||||||
Investments in and advances to affiliates | 6,119,819 | 5,655,063 | 116,004 | (11,890,886 | ) | — | ||||||||||||||
Other assets | 17,801 | — | 141,766 | — | 159,567 | |||||||||||||||
Total assets | $ | 6,190,810 | $ | 5,666,891 | $ | 7,391,554 | $ | (11,890,886 | ) | $ | 7,358,369 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 708,653 | $ | — | $ | 708,653 | ||||||||||
Unsecured senior notes payable | 1,048,190 | — | — | — | 1,048,190 | |||||||||||||||
Unsecured senior line of credit | 14,000 | — | — | — | 14,000 | |||||||||||||||
Unsecured senior bank term loans | 1,100,000 | — | — | — | 1,100,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 55,467 | — | 396,672 | — | 452,139 | |||||||||||||||
Dividends payable | 54,125 | — | 288 | — | 54,413 | |||||||||||||||
Total liabilities | 2,271,782 | — | 1,105,613 | — | 3,377,395 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,475 | — | 14,475 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,919,028 | 5,666,891 | 6,223,995 | (11,890,886 | ) | 3,919,028 | ||||||||||||||
Noncontrolling interests | — | — | 47,471 | — | 47,471 | |||||||||||||||
Total equity | 3,919,028 | 5,666,891 | 6,271,466 | (11,890,886 | ) | 3,966,499 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,190,810 | $ | 5,666,891 | $ | 7,391,554 | $ | (11,890,886 | ) | $ | 7,358,369 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments in real estate, net | $ | 38,616 | $ | — | $ | 6,385,962 | $ | — | $ | 6,424,578 | ||||||||||
Cash and cash equivalents | 98,567 | 1,913 | 40,491 | — | 140,971 | |||||||||||||||
Restricted cash | 52 | — | 39,895 | — | 39,947 | |||||||||||||||
Tenant receivables | 1 | — | 8,448 | — | 8,449 | |||||||||||||||
Deferred rent | 1,876 | — | 168,520 | — | 170,396 | |||||||||||||||
Deferred leasing and financing costs, net | 31,373 | — | 128,675 | — | 160,048 | |||||||||||||||
Investments | — | 12,591 | 102,457 | — | 115,048 | |||||||||||||||
Investments in and advances to affiliates | 5,833,368 | 5,358,883 | 110,100 | (11,302,351 | ) | — | ||||||||||||||
Intercompany note receivable | 3,021 | — | — | (3,021 | ) | — | ||||||||||||||
Other assets | 17,613 | — | 73,066 | — | 90,679 | |||||||||||||||
Total assets | $ | 6,024,487 | $ | 5,373,387 | $ | 7,057,614 | $ | (11,305,372 | ) | $ | 7,150,116 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 716,144 | $ | — | $ | 716,144 | ||||||||||
Unsecured senior notes payable | 549,805 | — | — | — | 549,805 | |||||||||||||||
Unsecured senior line of credit | 566,000 | — | — | — | 566,000 | |||||||||||||||
Unsecured senior bank term loans | 1,350,000 | — | — | — | 1,350,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 75,728 | — | 347,980 | — | 423,708 | |||||||||||||||
Dividends payable | 41,103 | — | 298 | — | 41,401 | |||||||||||||||
Intercompany notes payable | — | — | 3,021 | (3,021 | ) | — | ||||||||||||||
Total liabilities | 2,582,636 | — | 1,067,443 | (3,021 | ) | 3,647,058 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 14,564 | — | 14,564 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,441,851 | 5,373,387 | 5,928,964 | (11,302,351 | ) | 3,441,851 | ||||||||||||||
Noncontrolling interests | — | — | 46,643 | — | 46,643 | |||||||||||||||
Total equity | 3,441,851 | 5,373,387 | 5,975,607 | (11,302,351 | ) | 3,488,494 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,024,487 | $ | 5,373,387 | $ | 7,057,614 | $ | (11,305,372 | ) | $ | 7,150,116 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 116,302 | $ | — | $ | 116,302 | ||||||||||
Tenant recoveries | — | — | 38,757 | — | 38,757 | |||||||||||||||
Other income | 2,802 | (1 | ) | 3,965 | (3,195 | ) | 3,571 | |||||||||||||
Total revenues | 2,802 | (1 | ) | 159,024 | (3,195 | ) | 158,630 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 47,742 | — | 47,742 | |||||||||||||||
General and administrative | 10,141 | — | 4,720 | (3,195 | ) | 11,666 | ||||||||||||||
Interest | 10,238 | — | 5,933 | — | 16,171 | |||||||||||||||
Depreciation and amortization | 1,472 | — | 47,630 | — | 49,102 | |||||||||||||||
Loss on early extinguishment of debt | 1,432 | — | — | — | 1,432 | |||||||||||||||
Total expenses | 23,283 | — | 106,025 | (3,195 | ) | 126,113 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (20,481 | ) | (1 | ) | 52,999 | — | 32,517 | |||||||||||||
Equity in earnings of affiliates | 51,975 | 48,477 | 959 | (101,411 | ) | — | ||||||||||||||
Income from continuing operations | 31,494 | 48,476 | 53,958 | (101,411 | ) | 32,517 | ||||||||||||||
(Loss) income from discontinued operations, net | (1 | ) | — | (63 | ) | — | (64 | ) | ||||||||||||
Net income | 31,493 | 48,476 | 53,895 | (101,411 | ) | 32,453 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 960 | — | 960 | |||||||||||||||
Dividends on preferred stock | 6,472 | — | — | — | 6,472 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 442 | — | — | — | 442 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 24,579 | $ | 48,476 | $ | 52,935 | $ | (101,411 | ) | $ | 24,579 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 106,216 | $ | — | $ | 106,216 | ||||||||||
Tenant recoveries | — | — | 34,006 | — | 34,006 | |||||||||||||||
Other income | 2,785 | 51 | 3,209 | (3,417 | ) | 2,628 | ||||||||||||||
Total revenues | 2,785 | 51 | 143,431 | (3,417 | ) | 142,850 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 44,203 | — | 44,203 | |||||||||||||||
General and administrative | 9,587 | — | 6,300 | (3,417 | ) | 12,470 | ||||||||||||||
Interest | 11,785 | — | 5,307 | — | 17,092 | |||||||||||||||
Depreciation and amortization | 1,725 | — | 44,859 | — | 46,584 | |||||||||||||||
Total expenses | 23,097 | — | 100,669 | (3,417 | ) | 120,349 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (20,312 | ) | 51 | 42,762 | — | 22,501 | ||||||||||||||
Equity in earnings of affiliates | 41,380 | 42,064 | 804 | (84,248 | ) | — | ||||||||||||||
Income from continuing operations | 21,068 | 42,115 | 43,566 | (84,248 | ) | 22,501 | ||||||||||||||
(Loss) income from discontinued operations, net | (3,591 | ) | — | (605 | ) | — | (4,196 | ) | ||||||||||||
Net income | 17,477 | 42,115 | 42,961 | (84,248 | ) | 18,305 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 828 | — | 828 | |||||||||||||||
Dividends on preferred stock | 6,471 | — | — | — | 6,471 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 360 | — | — | — | 360 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 10,646 | $ | 42,115 | $ | 42,133 | $ | (84,248 | ) | $ | 10,646 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 342,821 | $ | — | $ | 342,821 | ||||||||||
Tenant recoveries | — | — | 110,291 | — | 110,291 | |||||||||||||||
Other income | 8,071 | (142 | ) | 11,636 | (9,432 | ) | 10,133 | |||||||||||||
Total revenues | 8,071 | (142 | ) | 464,748 | (9,432 | ) | 463,245 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 139,289 | — | 139,289 | |||||||||||||||
General and administrative | 32,574 | — | 12,644 | (9,432 | ) | 35,786 | ||||||||||||||
Interest | 32,048 | — | 18,121 | — | 50,169 | |||||||||||||||
Depreciation and amortization | 4,393 | — | 137,354 | — | 141,747 | |||||||||||||||
Loss on early extinguishment of debt | 1,992 | — | — | — | 1,992 | |||||||||||||||
Total expenses | 71,007 | — | 307,408 | (9,432 | ) | 368,983 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (62,936 | ) | (142 | ) | 157,340 | — | 94,262 | |||||||||||||
Equity in earnings of affiliates | 155,694 | 144,660 | 2,858 | (303,212 | ) | — | ||||||||||||||
Income from continuing operations | 92,758 | 144,518 | 160,198 | (303,212 | ) | 94,262 | ||||||||||||||
Income from discontinued operations, net | 347 | — | 646 | — | 993 | |||||||||||||||
Gain on sale of land parcel | — | — | 772 | — | 772 | |||||||||||||||
Net income | 93,105 | 144,518 | 161,616 | (303,212 | ) | 96,027 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 2,922 | — | 2,922 | |||||||||||||||
Dividends on preferred stock | 19,414 | — | — | — | 19,414 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 1,187 | — | — | — | 1,187 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 72,504 | $ | 144,518 | $ | 158,694 | $ | (303,212 | ) | $ | 72,504 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 311,746 | $ | — | $ | 311,746 | ||||||||||
Tenant recoveries | — | — | 97,769 | — | 97,769 | |||||||||||||||
Other income | 7,593 | 891 | 16,095 | (9,940 | ) | 14,639 | ||||||||||||||
Total revenues | 7,593 | 891 | 425,610 | (9,940 | ) | 424,154 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 126,758 | — | 126,758 | |||||||||||||||
General and administrative | 32,030 | 1 | 13,034 | (9,940 | ) | 35,125 | ||||||||||||||
Interest | 34,460 | — | 16,780 | — | 51,240 | |||||||||||||||
Depreciation and amortization | 3,781 | — | 135,330 | — | 139,111 | |||||||||||||||
Loss on early extinguishment of debt | 2,225 | — | — | — | 2,225 | |||||||||||||||
Total expenses | 72,496 | 1 | 291,902 | (9,940 | ) | 354,459 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (64,903 | ) | 890 | 133,708 | — | 69,695 | ||||||||||||||
Equity in earnings of affiliates | 140,267 | 134,346 | 2,662 | (277,275 | ) | — | ||||||||||||||
Income from continuing operations | 75,364 | 135,236 | 136,370 | (277,275 | ) | 69,695 | ||||||||||||||
Income (loss) from discontinued operations, net | (1,033 | ) | — | 6,195 | — | 5,162 | ||||||||||||||
Gain on sale of land parcel | — | — | 1,864 | — | 1,864 | |||||||||||||||
Net income | 74,331 | 135,236 | 144,429 | (277,275 | ) | 76,721 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 2,390 | — | 2,390 | |||||||||||||||
Dividends on preferred stock | 20,857 | — | — | — | 20,857 | |||||||||||||||
Preferred stock redemption charge | 5,978 | — | — | — | 5,978 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 866 | — | — | — | 866 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 46,630 | $ | 135,236 | $ | 142,039 | $ | (277,275 | ) | $ | 46,630 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 31,493 | $ | 48,476 | $ | 53,895 | $ | (101,411 | ) | $ | 32,453 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains (losses) on marketable securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | (796 | ) | 759 | — | (37 | ) | |||||||||||||
Reclassification adjustment for (gains) losses included in net income | — | 519 | (769 | ) | — | (250 | ) | |||||||||||||
Unrealized gains (losses) on marketable securities, net | — | (277 | ) | (10 | ) | — | (287 | ) | ||||||||||||
Unrealized gains on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap gains arising during the period | (676 | ) | — | — | — | (676 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 3,904 | — | — | — | 3,904 | |||||||||||||||
Unrealized gains on interest rate swaps, net | 3,228 | — | — | — | 3,228 | |||||||||||||||
Foreign currency translation losses | — | — | (3,404 | ) | — | (3,404 | ) | |||||||||||||
Total other comprehensive income (loss) | 3,228 | (277 | ) | (3,414 | ) | — | (463 | ) | ||||||||||||
Comprehensive income | 34,721 | 48,199 | 50,481 | (101,411 | ) | 31,990 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (933 | ) | — | (933 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 34,721 | $ | 48,199 | $ | 49,548 | $ | (101,411 | ) | $ | 31,057 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 17,477 | $ | 42,115 | $ | 42,961 | $ | (84,248 | ) | $ | 18,305 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains (losses) on marketable securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | 23 | 773 | — | 796 | |||||||||||||||
Reclassification adjustment for losses included in net income | — | (11 | ) | (1,410 | ) | — | (1,421 | ) | ||||||||||||
Unrealized gains (losses) on marketable securities, net | — | 12 | (637 | ) | — | (625 | ) | |||||||||||||
Unrealized gains (losses) on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap gains (losses) arising during the period | (2,818 | ) | — | — | — | (2,818 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 5,956 | — | — | — | 5,956 | |||||||||||||||
Unrealized gains (losses) on interest rate swaps, net | 3,138 | — | — | — | 3,138 | |||||||||||||||
Foreign currency translation losses | — | — | 15,104 | — | 15,104 | |||||||||||||||
Total other comprehensive income | 3,138 | 12 | 14,467 | — | 17,617 | |||||||||||||||
Comprehensive income | 20,615 | 42,127 | 57,428 | (84,248 | ) | 35,922 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (805 | ) | — | (805 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 20,615 | $ | 42,127 | $ | 56,623 | $ | (84,248 | ) | $ | 35,117 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 93,105 | $ | 144,518 | $ | 161,616 | $ | (303,212 | ) | $ | 96,027 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains on marketable securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | (391 | ) | 714 | — | 323 | ||||||||||||||
Reclassification adjustment for (gains) losses included in net income | — | 144 | (624 | ) | — | (480 | ) | |||||||||||||
Unrealized gains on marketable securities, net | — | (247 | ) | 90 | — | (157 | ) | |||||||||||||
Unrealized gains on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (704 | ) | — | — | — | (704 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 12,046 | — | — | — | 12,046 | |||||||||||||||
Unrealized gains on interest rate swaps, net | 11,342 | — | — | — | 11,342 | |||||||||||||||
Foreign currency translation losses | — | — | (26,461 | ) | — | (26,461 | ) | |||||||||||||
Total other comprehensive income | 11,342 | (247 | ) | (26,371 | ) | — | (15,276 | ) | ||||||||||||
Comprehensive income | 104,447 | 144,271 | 135,245 | (303,212 | ) | 80,751 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (2,839 | ) | — | (2,839 | ) | |||||||||||||
Comprehensive income attributable to Alexandria's common stockholders | $ | 104,447 | $ | 144,271 | $ | 132,406 | $ | (303,212 | ) | $ | 77,912 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 74,331 | $ | 135,236 | $ | 144,429 | $ | (277,275 | ) | $ | 76,721 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains (losses) on marketable securities: | ||||||||||||||||||||
Unrealized holding gains arising during the period | — | 10 | 1,353 | — | 1,363 | |||||||||||||||
Reclassification adjustment for (gains) losses included in net income | — | 172 | (2,279 | ) | — | (2,107 | ) | |||||||||||||
Unrealized gains (losses) on marketable securities, net | — | 182 | (926 | ) | — | (744 | ) | |||||||||||||
Unrealized gains on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (9,982 | ) | — | — | — | (9,982 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 17,626 | — | — | — | 17,626 | |||||||||||||||
Unrealized gains on interest rate swaps, net | 7,644 | — | — | — | 7,644 | |||||||||||||||
Foreign currency translation losses | — | — | 7,871 | — | 7,871 | |||||||||||||||
Total other comprehensive income | 7,644 | 182 | 6,945 | — | 14,771 | |||||||||||||||
Comprehensive income | 81,975 | 135,418 | 151,374 | (277,275 | ) | 91,492 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (2,379 | ) | — | (2,379 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 81,975 | $ | 135,418 | $ | 148,995 | $ | (277,275 | ) | $ | 89,113 | |||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 93,105 | $ | 144,518 | $ | 161,616 | $ | (303,212 | ) | $ | 96,027 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 4,393 | — | 138,284 | — | 142,677 | |||||||||||||||
Loss on early extinguishment of debt | 1,992 | — | — | — | 1,992 | |||||||||||||||
Gain on sale of land parcel | — | — | (772 | ) | — | (772 | ) | |||||||||||||
Loss on sale of real estate | — | — | 121 | — | 121 | |||||||||||||||
Amortization of loan fees and costs | 5,148 | — | 2,152 | — | 7,300 | |||||||||||||||
Amortization of debt premiums/discounts | 75 | — | 308 | — | 383 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (2,490 | ) | — | (2,490 | ) | |||||||||||||
Deferred rent | — | — | (20,007 | ) | — | (20,007 | ) | |||||||||||||
Stock compensation expense | 11,541 | — | — | — | 11,541 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (155,694 | ) | (144,660 | ) | (2,858 | ) | 303,212 | — | ||||||||||||
Gain on sales of investments | — | (152 | ) | (4,564 | ) | — | (4,716 | ) | ||||||||||||
Loss on sales of investments | — | 298 | 231 | — | 529 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | (8 | ) | — | 1,251 | — | 1,243 | ||||||||||||||
Tenant receivables | 1 | — | (272 | ) | — | (271 | ) | |||||||||||||
Deferred leasing costs | 2,421 | — | (39,611 | ) | — | (37,190 | ) | |||||||||||||
Other assets | (5,570 | ) | — | (5,858 | ) | — | (11,428 | ) | ||||||||||||
Intercompany receivables and payables | 3,021 | — | (3,021 | ) | — | — | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | (9,599 | ) | — | 61,036 | — | 51,437 | ||||||||||||||
Net cash provided by (used in) operating activities | (49,174 | ) | 4 | 285,546 | — | 236,376 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of properties | 10,796 | — | 91,019 | — | 101,815 | |||||||||||||||
Additions to properties | 3,539 | — | (453,679 | ) | — | (450,140 | ) | |||||||||||||
Purchase of properties | — | — | (24,537 | ) | — | (24,537 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | 5,711 | — | 5,711 | |||||||||||||||
Contributions to unconsolidated real estate entity | — | — | (13,881 | ) | — | (13,881 | ) | |||||||||||||
Investments in subsidiaries | (126,967 | ) | (170,033 | ) | (3,045 | ) | 300,045 | — | ||||||||||||
Additions to investments | — | — | (22,835 | ) | — | (22,835 | ) | |||||||||||||
Proceeds from investments | — | 1,594 | 11,156 | — | 12,750 | |||||||||||||||
Net cash provided by (used in) investing activities | $ | (112,632 | ) | $ | (168,439 | ) | $ | (410,091 | ) | $ | 300,045 | $ | (391,117 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Financing Activities | ||||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 26,319 | $ | — | $ | 26,319 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (34,120 | ) | — | (34,120 | ) | |||||||||||||
Proceeds from issuance of senior notes payable | 498,561 | — | — | — | 498,561 | |||||||||||||||
Principal borrowings from unsecured senior line of credit | 319,000 | — | — | — | 319,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (871,000 | ) | — | — | — | (871,000 | ) | |||||||||||||
Repayments of unsecured senior bank term loans | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||
Repurchase of unsecured senior convertible notes | (384 | ) | — | — | — | (384 | ) | |||||||||||||
Transfer to/from parent company | — | 166,522 | 133,523 | (300,045 | ) | — | ||||||||||||||
Change in restricted cash related to financings | (1 | ) | — | 924 | — | 923 | ||||||||||||||
Deferred financing costs paid | (14,175 | ) | — | (2,072 | ) | — | (16,247 | ) | ||||||||||||
Proceeds from common stock offerings | 535,686 | — | — | — | 535,686 | |||||||||||||||
Dividends paid on common stock | (120,367 | ) | — | — | — | (120,367 | ) | |||||||||||||
Dividends paid on preferred stock | (19,414 | ) | — | — | — | (19,414 | ) | |||||||||||||
Distributions to noncontrolling interests | — | — | (2,100 | ) | — | (2,100 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 77,906 | 166,522 | 122,474 | (300,045 | ) | 66,857 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 752 | — | 752 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (83,900 | ) | (1,913 | ) | (1,319 | ) | — | (87,132 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 98,567 | 1,913 | 40,491 | — | 140,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 14,667 | $ | — | $ | 39,172 | $ | — | $ | 53,839 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 16,569 | $ | — | $ | 17,712 | $ | — | $ | 34,281 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Note receivable from sale of real estate | $ | 29,820 | $ | — | $ | 9,000 | $ | — | $ | 38,820 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 74,331 | $ | 135,236 | $ | 144,429 | $ | (277,275 | ) | $ | 76,721 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 3,781 | — | 140,152 | — | 143,933 | |||||||||||||||
Loss on early extinguishment of debt | 2,225 | — | — | — | 2,225 | |||||||||||||||
Gain on sale of land parcel | — | — | (1,864 | ) | — | (1,864 | ) | |||||||||||||
Gain on sale of real estate | — | — | (1,564 | ) | — | (1,564 | ) | |||||||||||||
Non-cash impairment of real estate | 4,799 | 5,000 | 9,799 | |||||||||||||||||
Amortization of loan fees and costs | 5,307 | — | 2,020 | — | 7,327 | |||||||||||||||
Amortization of debt premiums/discounts | 104 | — | 297 | — | 401 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (2,356 | ) | — | (2,356 | ) | |||||||||||||
Deferred rent | 164 | — | (19,380 | ) | — | (19,216 | ) | |||||||||||||
Stock compensation expense | 10,412 | — | — | — | 10,412 | |||||||||||||||
Equity in loss related to investments | — | 26 | — | — | 26 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (140,267 | ) | (134,346 | ) | (2,662 | ) | 277,275 | — | ||||||||||||
Gain on sales of investments | — | (1,109 | ) | (11,207 | ) | — | (12,316 | ) | ||||||||||||
Loss on sales of investments | — | 195 | 1,412 | — | 1,607 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | (8 | ) | — | 449 | — | 441 | ||||||||||||||
Tenant receivables | 11 | — | (2,648 | ) | — | (2,637 | ) | |||||||||||||
Deferred leasing costs | 4,232 | — | (27,829 | ) | — | (23,597 | ) | |||||||||||||
Other assets | 2,603 | — | (5,833 | ) | — | (3,230 | ) | |||||||||||||
Intercompany receivables and payables | (49 | ) | — | 49 | — | — | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 3,592 | — | 37,786 | — | 41,378 | |||||||||||||||
Net cash provided by (used in) operating activities | (28,763 | ) | 2 | 256,251 | — | 227,490 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of properties | — | — | 36,179 | — | 36,179 | |||||||||||||||
Additions to properties | (1,192 | ) | — | (404,874 | ) | — | (406,066 | ) | ||||||||||||
Purchase of properties | — | — | (42,171 | ) | — | (42,171 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (11,453 | ) | — | (11,453 | ) | |||||||||||||
Distribution from unconsolidated real estate entity | — | — | 22,250 | — | 22,250 | |||||||||||||||
Contributions to unconsolidated real estate entity | — | — | (5,042 | ) | — | (5,042 | ) | |||||||||||||
Investments in subsidiaries | (147,782 | ) | (112,504 | ) | (389 | ) | 260,675 | — | ||||||||||||
Additions to investments | — | (160 | ) | (21,837 | ) | — | (21,997 | ) | ||||||||||||
Proceeds from investments | — | 1,944 | 17,961 | — | 19,905 | |||||||||||||||
Net cash provided by (used in) investing activities | $ | (148,974 | ) | $ | (110,720 | ) | $ | (409,376 | ) | $ | 260,675 | $ | (408,395 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Financing Activities | ||||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 2,874 | $ | — | $ | 2,874 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (8,125 | ) | — | (8,125 | ) | |||||||||||||
Proceeds from issuance of unsecured senior notes payable | 549,533 | — | — | — | 549,533 | |||||||||||||||
Principal borrowings from unsecured senior line of credit and unsecured senior bank term loan | 623,147 | — | — | — | 623,147 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (580,147 | ) | — | — | — | (580,147 | ) | |||||||||||||
Repayment of unsecured senior bank term loan | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||
Repurchase of unsecured senior convertible notes | (84,801 | ) | — | — | — | (84,801 | ) | |||||||||||||
Redemption of Series C Cumulative Redeemable Preferred Stock | (129,638 | ) | — | — | — | (129,638 | ) | |||||||||||||
Proceeds from issuance of Series E Cumulative Redeemable Preferred Stock | 124,868 | — | — | — | 124,868 | |||||||||||||||
Transfer to/from parent company | — | 110,718 | 149,957 | (260,675 | ) | — | ||||||||||||||
Change in restricted cash related to financings | — | — | (10,476 | ) | — | (10,476 | ) | |||||||||||||
Deferred financing costs paid | (19,949 | ) | — | (5,352 | ) | — | (25,301 | ) | ||||||||||||
Proceeds from common stock offering | 98,443 | — | — | — | 98,443 | |||||||||||||||
Proceeds from exercise of stock options | 155 | — | — | — | 155 | |||||||||||||||
Dividends paid on common stock | (92,743 | ) | — | — | — | (92,743 | ) | |||||||||||||
Dividends paid on preferred stock | (21,348 | ) | — | — | — | (21,348 | ) | |||||||||||||
Distributions to redeemable noncontrolling interests | — | — | (943 | ) | — | (943 | ) | |||||||||||||
Redemption of redeemable noncontrolling interests | 4 | — | (154 | ) | — | (150 | ) | |||||||||||||
Contributions by noncontrolling interests | — | — | 1,626 | — | 1,626 | |||||||||||||||
Distributions to noncontrolling interests | — | — | (770 | ) | — | (770 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 217,524 | 110,718 | 128,637 | (260,675 | ) | 196,204 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 1,066 | — | 1,066 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 39,787 | — | (23,422 | ) | — | 16,365 | ||||||||||||||
Cash and cash equivalents at beginning of period | 10,608 | — | 67,931 | — | 78,539 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 50,395 | $ | — | $ | 44,509 | $ | — | $ | 94,904 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 23,226 | $ | — | $ | 7,259 | $ | — | $ | 30,485 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Note receivable from sale of real estate | $ | — | $ | — | $ | 6,125 | $ | — | $ | 6,125 | ||||||||||
Basis_of_presentation_Policies
Basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of presentation | ' |
We have prepared the accompanying interim consolidated financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, the interim consolidated financial statements presented herein reflect all adjustments that are necessary to fairly present the interim consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our annual report on Form 10-K for the year ended December 31, 2012. | |
The accompanying consolidated financial statements include the accounts of Alexandria Real Estate Equities, Inc. and its subsidiaries. All significant intercompany balances and transactions have been eliminated. | |
We hold interests, together with certain third parties, in companies that we consolidate in our financial statements. We consolidate the companies because we exercise significant control over major decisions by these entities, such as investment activity and changes in financing. | |
Use of estimates | ' |
Use of estimates | |
The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, and equity; the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements; and the amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Investments in real estate, net, and discontinued operations | ' |
Investments in real estate, net, and discontinued operations | |
We recognize assets acquired (including the intangible value of above or below market leases, acquired in-place leases, client tenant relationships, and other intangible assets or liabilities), liabilities assumed, and any noncontrolling interest in an acquired entity at their fair value as of the acquisition date. If there is a bargain fixed rate renewal option for the period beyond the non-cancelable lease term, we evaluate factors such as the business conditions in the industry in which the lessee operates, the economic conditions in the area in which the property is located, and the ability of the lessee to sublease the property during the renewal term, in order to determine the likelihood that the lessee will renew. When we determine there is reasonable assurance that such bargain purchase option will be exercised, we consider its impact in determining the intangible value of such lease and its related amortization period. The value of tangible assets acquired is based upon our estimation of value on an “as if vacant” basis. The value of acquired in-place leases includes the estimated carrying costs during the hypothetical lease-up period and other costs that would have been incurred in the execution of similar leases, considering market conditions at the acquisition date of the acquired in-place lease. We assess the fair value of tangible and intangible assets based on numerous factors, including estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information. Estimates of future cash flows are based on a number of factors, including the historical operating results, known trends, and market/economic conditions that may affect the property. We also recognize the fair values of assets acquired, the liabilities assumed, and any noncontrolling interest in acquisitions of less than a 100% interest when the acquisition constitutes a change in control of the acquired entity. Acquisition-related costs and restructuring costs are expensed as incurred. | |
The values allocated to land improvements, tenant improvements, equipment, buildings, and building improvements are depreciated on a straight-line basis using an estimated life of 20 years for land improvements, the respective lease term for tenant improvements, the estimated useful life for equipment, and the shorter of the term of the respective ground lease and up to 40 years for buildings and building improvements. The values of acquired above and below market leases are amortized over the lives of the related leases and recognized as either an increase (for below market leases) or a decrease (for above market leases) to rental income. The values of acquired in-place leases are classified in other assets in the accompanying consolidated balance sheets, and amortized over the remaining terms of the related leases. | |
We are required to capitalize project costs, including predevelopment costs, interest, property taxes, insurance, and other costs directly related and essential to the acquisition, development, redevelopment, or construction of a project. Capitalization of development, redevelopment, and construction costs is required while activities are ongoing to prepare an asset for its intended use. Fluctuations in our development, redevelopment, and construction activities could result in significant changes to total expenses and net income. Costs incurred after a project is substantially complete and ready for its intended use are expensed as incurred. Should development, redevelopment, or construction activity cease, interest, property taxes, insurance, and certain other costs would no longer be eligible for capitalization and would be expensed as incurred. Expenditures for repairs and maintenance are expensed as incurred. | |
A property is classified as “held for sale” when all of the following criteria for a plan of sale have been met: (1) management, having the authority to approve the action, commits to a plan to sell the property; (2) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (3) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (4) the sale of the property is probable and is expected to be completed within one year; (5) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (6) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all of these criteria have been met, the property is classified as “held for sale.” If (1) the operations and cash flows of the property have been or will be eliminated from the ongoing operations; and (2) we will not have any significant continuing involvement in the operations of the property after the sale, then its operations, including any interest expense directly attributable to it, are classified as discontinued operations in our consolidated statements of income, and amounts for all prior periods presented are reclassified from continuing operations to discontinued operations. Depreciation of assets ceases upon designation of a property as “held for sale.” | |
Impairment of long-lived assets | ' |
Impairment of long-lived assets | |
Long-lived assets to be held and used, including our rental properties, land held for future development, construction in progress, and intangibles, are individually evaluated for impairment when conditions exist that may indicate that the carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used, including our rental properties, land held for future development, and construction in progress, are assessed by project and include significant fluctuations in estimated net operating income, occupancy changes, significant near-term lease expirations, current and historical operating and/or cash flow losses, construction costs, estimated completion dates, rental rates, and other market factors. We assess the expected undiscounted cash flows based upon numerous factors, including, but not limited to, construction costs, available market information, current and historical operating results, known trends, current market/economic conditions that may affect the property, and our assumptions about the use of the asset, including, if necessary, a probability-weighted approach if multiple outcomes are under consideration. Upon determination that an impairment has occurred, a write-down is recognized to reduce the carrying amount to its estimated fair value. If an impairment loss is not required to be recognized, the recognition of depreciation is adjusted prospectively, as necessary, to reduce the carrying amount of the real estate to its estimated disposition value over the remaining period that the real estate is expected to be held and used. We may adjust depreciation of properties that are expected to be disposed of or redeveloped prior to the end of their useful lives. | |
We use a “held for sale” impairment model for our properties classified as “held for sale.” The “held for sale” impairment model is different from the held and used impairment model. Under the “held for sale” impairment model, an impairment loss is recognized if the carrying amount of the long-lived asset classified as “held for sale” exceeds its fair value less cost to sell. Because of these two different models, it is possible for a long-lived asset previously classified as held and used to require the recognition of an impairment charge upon classification as “held for sale.” | |
Investments | ' |
Investments | |
We hold equity investments in certain publicly traded companies and privately held entities primarily involved in the life science industry. All of our investments in actively traded public companies are considered “available for sale” and are reflected in the accompanying consolidated balance sheets at fair value. Fair value has been determined based upon the closing price as of each balance sheet date, with unrealized gains and losses shown as a separate component of comprehensive income. The classification of each investment is determined at the time each investment is made, and such determination is reevaluated at each balance sheet date. The cost of each investment sold is determined by the specific identification method, with net realized gains or losses classified in other income in the accompanying consolidated statements of income. Investments in privately held entities are generally accounted for under the cost method when our interest in the entity is so minor that we have virtually no influence over the entity’s operating and financial policies. Certain investments in privately held entities are accounted for under the equity method when our interest in the entity is not deemed so minor that we have virtually no influence over the entity’s operating and financial policies. Under the equity method of accounting, we recognize our investment initially at cost and adjust the carrying amount of the investment to recognize our share of the earnings or losses of the investee subsequent to the date of our investment. Additionally, we limit our ownership percentage in the voting stock of each individual entity to less than 10%. As of September 30, 2013, and December 31, 2012, our ownership percentage in the voting stock of each individual entity was less than 10%. | |
Individual investments are evaluated for impairment when changes in conditions may indicate an impairment exists. The factors that we consider in making these assessments include market prices, market conditions, available financing, prospects for favorable or unfavorable clinical trial results, new product initiatives, and new collaborative agreements. If there are no identified events or changes in circumstances that would have an adverse effect on our cost method investments, we do not estimate the investment’s fair value. For all of our investments, if a decline in the fair value of an investment below the carrying value is determined to be other than temporary, such investment is written down to its estimated fair value with a non-cash charge to current earnings. | |
Income taxes | ' |
Income taxes | |
We are organized and qualify as a REIT pursuant to the Internal Revenue Code of 1986, as amended (the “Code”). Under the Code, a REIT that distributes 100% of its REIT taxable income as a dividend to its shareholders each year and that meets certain other conditions is not subject to federal income taxes, but could be subject to certain state and local taxes. We have distributed 100% or more of our taxable income. Therefore, no provision for federal income taxes is required. We file tax returns, including returns for our subsidiaries, with federal, state, and local jurisdictions, including jurisdictions located in the U.S., Canada, India, China, and other international locations. Our tax returns are subject to examination in various jurisdictions for the calendar years 2008 through 2012. | |
We recognize tax benefits of uncertain tax positions only if it is more likely than not that the tax position will be sustained, based solely on its technical merits, with the taxing authority having full knowledge of all relevant information. The measurement of a tax benefit for an uncertain tax position that meets the “more likely than not” threshold is based on a cumulative probability model under which the largest amount of tax benefit recognized is the amount with a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority having full knowledge of all the relevant information. As of September 30, 2013, there were no unrecognized tax benefits. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. | |
Interest expense and penalties, if any, would be recognized in the first period during which the interest or penalty would begin accruing, according to the provisions of the relevant tax law at the applicable statutory rate of interest. | |
Interest income | ' |
Interest income is classified in other income in the accompanying consolidated statements of income. | |
Recognition of rental income and tenant recoveries | ' |
Recognition of rental income and tenant recoveries | |
Rental income from leases is recognized on a straight-line basis over the respective lease terms. We classify amounts currently recognized as income, and expected to be received in later years, as an asset in deferred rent in the accompanying consolidated balance sheets. Amounts received currently, but recognized as income in future years, are classified in accounts payable, accrued expenses, and tenant security deposits in the accompanying consolidated balance sheets. We commence recognition of rental income at the date the property is ready for its intended use and the client tenant takes possession of or controls the physical use of the property. | |
Tenant recoveries related to reimbursement of real estate taxes, insurance, utilities, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. | |
Tenant receivables consist primarily of amounts due for contractual lease payments, reimbursements of common area maintenance expenses, property taxes, and other expenses recoverable from client tenants. Tenant receivables are expected to be collected within one year. We maintain an allowance for estimated losses that may result from the inability of our client tenants to make payments required under the terms of the lease and for tenant recoveries due. If a client tenant fails to make contractual payments beyond any allowance, we may recognize additional bad debt expense in future periods equal to the amount of uncollectible rent and deferred rent receivables arising from the straight-lining of rent. |
Investments_in_real_estate_Tab
Investments in real estate (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Real Estate [Abstract] | ' | |||||||
Investments in real estate | ' | |||||||
Our investments in real estate, net, consisted of the following as of September 30, 2013, and December 31, 2012 (in thousands): | ||||||||
30-Sep-13 | 31-Dec-12 | |||||||
Rental properties: | ||||||||
Land (related to rental properties) | $ | 542,511 | $ | 522,664 | ||||
Buildings and building improvements | 5,315,447 | 4,933,314 | ||||||
Other improvements | 170,078 | 189,793 | ||||||
Rental properties | 6,028,036 | 5,645,771 | ||||||
Less: accumulated depreciation | (915,494 | ) | (875,035 | ) | ||||
Rental properties, net | 5,112,542 | 4,770,736 | ||||||
Construction in progress (“CIP”)/current value-creation projects: | ||||||||
Active development in North America | 594,973 | 431,578 | ||||||
Investment in unconsolidated joint venture | 42,537 | (1) | 28,656 | |||||
Active redevelopment in North America | 24,960 | 199,744 | ||||||
Active development and redevelopment in Asia | 97,319 | 101,602 | ||||||
Generic infrastructure/building improvement projects in North America | 46,227 | 80,599 | ||||||
806,016 | 842,179 | |||||||
Subtotal | 5,918,558 | 5,612,915 | ||||||
Land/future value-creation projects: | ||||||||
Land undergoing predevelopment activities (CIP) in North America | 351,062 | 433,310 | ||||||
Land held for future development in North America | 190,427 | 296,039 | ||||||
Land held for future development/undergoing predevelopment activities (CIP) in Asia | 77,274 | 82,314 | ||||||
Land subject to sale negotiations | 76,440 | — | ||||||
695,203 | 811,663 | |||||||
Investments in real estate, net | $ | 6,613,761 | $ | 6,424,578 | ||||
-1 | The book value for this unconsolidated joint venture represents our equity investment in the project. |
Investments_Tables
Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Investments [Abstract] | ' | |||||||||||||||
Summary of investments | ' | |||||||||||||||
The following table summarizes our investments as of September 30, 2013, and December 31, 2012 (in thousands): | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
“Available-for-sale” securities, cost basis | $ | 1,940 | $ | 1,236 | ||||||||||||
Gross unrealized gains | 1,708 | 1,561 | ||||||||||||||
Gross unrealized losses | (392 | ) | (88 | ) | ||||||||||||
“Available-for-sale” securities, at fair value | 3,256 | 2,709 | ||||||||||||||
Investments accounted for under cost method | 125,901 | 112,333 | ||||||||||||||
Investments accounted for under equity method | 6 | 6 | ||||||||||||||
Total investments | $ | 129,163 | $ | 115,048 | ||||||||||||
Schedule of net investment income | ' | |||||||||||||||
The following table outlines our investment income, which is classified in other income in the accompanying consolidated statements of income for the three and nine months ended September 30, 2013 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended | |||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Gross realized gains | $ | 2,050 | $ | 1,190 | $ | 4,716 | $ | 12,316 | ||||||||
Gross realized losses | — | (518 | ) | (529 | ) | (1,607 | ) | |||||||||
Equity in loss related to equity method investments | — | — | — | (26 | ) | |||||||||||
Investment income | $ | 2,050 | $ | 672 | $ | 4,187 | $ | 10,683 | ||||||||
Amount of gains reclassified from accumulated other comprehensive income to realized gains, net | $ | 250 | $ | 1,421 | $ | 480 | $ | 2,107 | ||||||||
Secured_and_unsecured_senior_d1
Secured and unsecured senior debt (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||||
Summary of secured and unsecured debt | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes our secured and unsecured senior debts and their respective principal maturities, as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||
Fixed Rate/Hedged | Unhedged | Total | Percentage of Total | Weighted Average | Weighted Average | |||||||||||||||||||||||||||||||||
Variable Rate | Variable Rate | Consolidated | Interest Rate at | Remaining Term | ||||||||||||||||||||||||||||||||||
End of Period (1) | (in years) | |||||||||||||||||||||||||||||||||||||
Secured notes payable, net | $ | 589,126 | $ | 119,527 | $ | 708,653 | 24.7 | % | 5.47 | % | 2.5 | |||||||||||||||||||||||||||
Unsecured senior notes payable, net | 1,048,190 | — | 1,048,190 | 36.5 | 4.29 | 9.1 | ||||||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | — | 14,000 | 14,000 | 0.5 | 1.28 | 5.3 | ||||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | 350,000 | 150,000 | 500,000 | 17.4 | 1.7 | 2.8 | ||||||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | 600,000 | — | 600,000 | 20.9 | 3.3 | 5.3 | ||||||||||||||||||||||||||||||||
Total debt / weighted average | $ | 2,587,316 | $ | 283,527 | $ | 2,870,843 | 100 | % | 3.91 | % | 5.5 | |||||||||||||||||||||||||||
Percentage of total debt | 90 | % | 10 | % | 100 | % | ||||||||||||||||||||||||||||||||
-1 | Represents the weighted average contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | |||||||||||||||||||||||||||||||||||||
Summary of fixed rate/hedged and unhedged floating rate debt and their respective principal maturities | ' | |||||||||||||||||||||||||||||||||||||
The following table summarizes our outstanding consolidated indebtedness as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||||
Stated | Weighted Average | Maturity Date(2) | Remaining for the Period Ending December 31, | |||||||||||||||||||||||||||||||||||
Debt | Rate | Interest Rate(1) | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||||||||||
Secured notes payable | ||||||||||||||||||||||||||||||||||||||
Greater Boston | 5.26 | % | 5.59 | % | 4/1/14 | $ | 979 | $ | 208,683 | $ | — | $ | — | $ | — | $ | — | $ | 209,662 | |||||||||||||||||||
Suburban Washington, D.C. | 2.17 | 2.17 | 4/20/14 | (3) | — | 76,000 | — | — | — | — | 76,000 | |||||||||||||||||||||||||||
San Diego | 6.05 | 4.88 | 7/1/14 | 24 | 6,458 | — | — | — | — | 6,482 | ||||||||||||||||||||||||||||
San Diego | 5.39 | 4 | 11/1/14 | 30 | 7,495 | — | — | — | — | 7,525 | ||||||||||||||||||||||||||||
Seattle | 6 | 6 | 11/18/14 | 60 | 240 | — | — | — | — | 300 | ||||||||||||||||||||||||||||
Suburban Washington, D.C. | 5.64 | 4.5 | 6/1/15 | 22 | 138 | 5,788 | — | — | — | 5,948 | ||||||||||||||||||||||||||||
Greater Boston, San Diego, and Greater New York City | 5.73 | 5.73 | 1/1/16 | 416 | 1,713 | 1,816 | 75,501 | — | — | 79,446 | ||||||||||||||||||||||||||||
Greater Boston, San Diego, and Greater NYC | 5.82 | 5.82 | 4/1/16 | 221 | 931 | 988 | 29,389 | — | — | 31,529 | ||||||||||||||||||||||||||||
San Francisco Bay Area | 6.35 | 6.35 | 8/1/16 | 580 | 2,487 | 2,652 | 126,715 | — | — | 132,434 | ||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | 1.69 | 7/1/15 | (4) | — | — | 43,227 | — | — | — | 43,227 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | 1.59 | 6/1/16 | (5) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Greater Boston | L+1.35 | 1.54 | 8/23/17 | (6) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
San Diego, Suburban Washington, D.C., and Seattle | 7.75 | 7.75 | 4/1/20 | 345 | 1,453 | 1,570 | 1,696 | 1,832 | 108,469 | 115,365 | ||||||||||||||||||||||||||||
San Francisco Bay Area | 6.5 | 6.5 | 6/1/37 | — | 17 | 18 | 19 | 20 | 773 | 847 | ||||||||||||||||||||||||||||
Average/Total | 5.41 | % | 5.47 | 2,677 | 305,615 | 56,059 | 233,320 | 1,852 | 109,242 | 708,765 | ||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | L+1.10 | % | (7) | 1.28 | 1/3/19 | — | — | — | — | — | 14,000 | 14,000 | ||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.7 | 7/31/16 | — | — | — | 500,000 | — | — | 500,000 | |||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 3.3 | 1/3/19 | — | — | — | — | — | 600,000 | 600,000 | |||||||||||||||||||||||||||
Unsecured senior notes payable | 4.6 | % | 4.61 | 4/1/22 | — | — | — | — | — | 550,000 | 550,000 | |||||||||||||||||||||||||||
Unsecured senior notes payable | 3.9 | % | 3.94 | 6/15/23 | — | — | — | — | — | 500,000 | 500,000 | |||||||||||||||||||||||||||
Average/Subtotal | 3.91 | 2,677 | 305,615 | 56,059 | 733,320 | 1,852 | 1,773,242 | 2,872,765 | ||||||||||||||||||||||||||||||
Unamortized discounts | — | (146 | ) | (199 | ) | (139 | ) | (177 | ) | (184 | ) | (1,077 | ) | (1,922 | ) | |||||||||||||||||||||||
Average/Total | 3.91 | % | $ | 2,531 | $ | 305,416 | $ | 55,920 | $ | 733,143 | $ | 1,668 | $ | 1,772,165 | $ | 2,870,843 | ||||||||||||||||||||||
Balloon payments | $ | — | $ | 297,080 | $ | 48,955 | $ | 730,029 | $ | — | $ | 1,768,352 | $ | 2,844,416 | ||||||||||||||||||||||||
Principal amortization | 2,531 | 8,336 | 6,965 | 3,114 | 1,668 | 3,813 | 26,427 | |||||||||||||||||||||||||||||||
Total consolidated debt | $ | 2,531 | $ | 305,416 | $ | 55,920 | $ | 733,143 | $ | 1,668 | $ | 1,772,165 | $ | 2,870,843 | ||||||||||||||||||||||||
Fixed rate/hedged variable rate debt | $ | 2,471 | $ | 229,176 | $ | 12,693 | $ | 583,143 | $ | 1,668 | $ | 1,758,165 | $ | 2,587,316 | ||||||||||||||||||||||||
Unhedged variable rate debt | 60 | 76,240 | 43,227 | 150,000 | — | 14,000 | 283,527 | |||||||||||||||||||||||||||||||
Total consolidated debt | $ | 2,531 | $ | 305,416 | $ | 55,920 | $ | 733,143 | $ | 1,668 | $ | 1,772,165 | $ | 2,870,843 | ||||||||||||||||||||||||
-1 | Represents the weighted average contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | |||||||||||||||||||||||||||||||||||||
-2 | Includes any extension options that we control. | |||||||||||||||||||||||||||||||||||||
-3 | We are having discussions with the lender on an extension of the maturity date. | |||||||||||||||||||||||||||||||||||||
-4 | Secured construction loan with aggregate commitments of $55.0 million. We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. | |||||||||||||||||||||||||||||||||||||
-5 | Secured construction loan with aggregate commitments of $33.0 million. We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. As of September 30, 2013, we had not drawn on the loan. | |||||||||||||||||||||||||||||||||||||
-6 | Secured construction loan with aggregate commitments of $245.4 million. We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. As of September 30, 2013, we had not drawn on the loan. | |||||||||||||||||||||||||||||||||||||
-7 | In addition to the stated rate, the line of credit is subject to an annual facility fee of | |||||||||||||||||||||||||||||||||||||
Schedule of changes to long-term debt | ' | |||||||||||||||||||||||||||||||||||||
The maturity dates below reflect any available extension options that we control. | ||||||||||||||||||||||||||||||||||||||
Balance at 9/30/13 | Maturity Date | Applicable Rate | Facility Fee | |||||||||||||||||||||||||||||||||||
Facility | Prior | Amended | Prior | Amended | Prior | Amended | ||||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | $ | 500 | million | Jun-16 | Jul-16 | L +1.75% | L +1.20% | N/A | N/A | |||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | $ | 600 | million | Jan-17 | Jan-19 | L +1.50% | L +1.20% | N/A | N/A | |||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | $ | 14 | million | Apr-17 | Jan-19 | L +1.20% | L +1.10% | 0.25 | % | 0.2 | % | |||||||||||||||||||||||||||
Schedule of interest expense incurred | ' | |||||||||||||||||||||||||||||||||||||
The following table outlines our interest expense for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||
Gross interest | $ | 32,959 | $ | 33,855 | $ | 96,668 | $ | 99,094 | ||||||||||||||||||||||||||||||
Capitalized interest | (16,788 | ) | (16,763 | ) | (46,499 | ) | (47,854 | ) | ||||||||||||||||||||||||||||||
Interest expense | $ | 16,171 | $ | 17,092 | $ | 50,169 | $ | 51,240 | ||||||||||||||||||||||||||||||
Construction loan of unconsolidated joint venture | ||||||||||||||||||||||||||||||||||||||
We have a 27.5% interest in an unconsolidated joint venture that is currently developing a building in the Longwood Medical Area of the Greater Boston market, with the construction costs funded primarily from a non-recourse secured construction loan with aggregate commitments of $213.2 million and an outstanding balance of $75.0 million as of September 30, 2013. See Note 3 for further information. |
Interest_rate_swap_agreements_1
Interest rate swap agreements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||
Outstanding interest rate hedge agreements designated as cash flow hedges of interest rate risk | ' | |||||||||||||||||
We had the following outstanding interest rate swap agreements that were designated as cash flow hedges of interest rate risk as of September 30, 2013 (dollars in thousands): | ||||||||||||||||||
Interest Pay Rate (1) | Fair Value as of September 30, 2013 | Notional Amount in Effect as of | ||||||||||||||||
Effective Date | Termination Date | 30-Sep-13 | 31-Dec-13 | |||||||||||||||
29-Dec-06 | 31-Mar-14 | 4.99 | % | $ | (1,205 | ) | $ | 50,000 | $ | 50,000 | ||||||||
30-Nov-09 | 31-Mar-14 | 5.015 | % | (1,817 | ) | 75,000 | 75,000 | |||||||||||
30-Nov-09 | 31-Mar-14 | 5.023 | % | (1,820 | ) | 75,000 | 75,000 | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.64 | % | (291 | ) | 250,000 | — | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.64 | % | (291 | ) | 250,000 | — | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.644 | % | (147 | ) | 125,000 | — | |||||||||||
31-Dec-12 | 31-Dec-13 | 0.644 | % | (147 | ) | 125,000 | — | |||||||||||
31-Dec-13 | 31-Dec-14 | 0.977 | % | (1,802 | ) | — | 250,000 | |||||||||||
31-Dec-13 | 31-Dec-14 | 0.976 | % | (1,799 | ) | — | 250,000 | |||||||||||
Total | $ | (9,319 | ) | $ | 950,000 | $ | 700,000 | |||||||||||
-1 | In addition to the interest pay rate, borrowings outstanding under our unsecured senior bank term loans include an applicable margin of 1.20% as of September 30, 2013. |
Fair_value_measurements_Tables
Fair value measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of fair value of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | ' | ||||||||||||||||
The following tables set forth the assets and liabilities that we measure at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2013, and December 31, 2012 (in thousands): | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 3,256 | $ | 3,256 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 9,319 | $ | — | $ | 9,319 | $ | — | |||||||||
31-Dec-12 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 2,709 | $ | 2,709 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 20,661 | $ | — | $ | 20,661 | $ | — | |||||||||
Schedule of the book and fair values of our marketable securities, interest rate swap agreements, secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loan | ' | ||||||||||||||||
As of September 30, 2013, and December 31, 2012, the book and fair values of our marketable securities, interest rate swap agreements, secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loans were as follows (in thousands): | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Marketable securities | $ | 3,256 | $ | 3,256 | $ | 2,709 | $ | 2,709 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 9,319 | $ | 9,319 | $ | 20,661 | $ | 20,661 | |||||||||
Secured notes payable | $ | 708,653 | $ | 761,047 | $ | 716,144 | $ | 788,455 | |||||||||
Unsecured senior notes payable | $ | 1,048,190 | $ | 1,028,750 | $ | 549,805 | $ | 593,350 | |||||||||
Unsecured senior line of credit | $ | 14,000 | $ | 13,738 | $ | 566,000 | $ | 567,196 | |||||||||
Unsecured senior bank term loans | $ | 1,100,000 | $ | 1,088,322 | $ | 1,350,000 | $ | 1,405,124 | |||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Reconciliation of the numerators and denominators of the basic and diluted earnings per share computations | ' | |||||||||||||||
The table below is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the three and nine months ended September 30, 2013 and 2012 (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income from continuing operations | $ | 32,517 | $ | 22,501 | $ | 94,262 | $ | 69,695 | ||||||||
Gain on sale of land parcel | — | — | 772 | 1,864 | ||||||||||||
Net income attributable to noncontrolling interests | (960 | ) | (828 | ) | (2,922 | ) | (2,390 | ) | ||||||||
Dividends on preferred stock | (6,472 | ) | (6,471 | ) | (19,414 | ) | (20,857 | ) | ||||||||
Preferred stock redemption charge | — | — | — | (5,978 | ) | |||||||||||
Net income attributable to unvested restricted stock awards | (442 | ) | (360 | ) | (1,187 | ) | (866 | ) | ||||||||
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted | 24,643 | 14,842 | 71,511 | 41,468 | ||||||||||||
(Loss) income from discontinued operations, net | (64 | ) | (4,196 | ) | 993 | 5,162 | ||||||||||
Net income attributable to Alexandria’s common stockholders – basic and diluted | $ | 24,579 | $ | 10,646 | $ | 72,504 | $ | 46,630 | ||||||||
Weighted average shares of common stock outstanding – basic and diluted | 70,900 | 62,364 | 67,040 | 61,847 | ||||||||||||
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ||||||||||||||||
Continuing operations | $ | 0.35 | $ | 0.24 | $ | 1.07 | $ | 0.67 | ||||||||
Discontinued operations, net | — | (0.07 | ) | 0.01 | 0.08 | |||||||||||
Earnings per share – basic and diluted | $ | 0.35 | $ | 0.17 | $ | 1.08 | $ | 0.75 | ||||||||
Net_income_attributable_to_Ale1
Net income attributable to Alexandria Real Estate Equities, Inc. (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Net Income (Loss) Attributable to Parent [Abstract] | ' | |||||||||||||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc. | ' | |||||||||||||||
The following table shows income from continuing and discontinued operations attributable to Alexandria Real Estate Equities, Inc. for the three and nine months ended September 30, 2013 and 2012 (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Income from continuing operations | $ | 32,517 | $ | 22,501 | $ | 94,262 | $ | 69,695 | ||||||||
Gain on sale of land parcels | — | — | 772 | 1,864 | ||||||||||||
Less: net income attributable to noncontrolling interests | (960 | ) | (828 | ) | (2,922 | ) | (2,390 | ) | ||||||||
Income from continuing operations attributable to Alexandria | 31,557 | 21,673 | 92,112 | 69,169 | ||||||||||||
(Loss) income from discontinued operations, net | (64 | ) | (4,196 | ) | 993 | 5,162 | ||||||||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | — | — | ||||||||||||
Net income attributable to Alexandria | $ | 31,493 | $ | 17,477 | $ | 93,105 | $ | 74,331 | ||||||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc. | ' | |||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria consists of the following (in thousands): | ||||||||||||||||
Unrealized Gain on Marketable Securities | Unrealized Loss on Interest Rate | Unrealized Loss on Foreign Currency Translation | Total | |||||||||||||
Swap Agreements | ||||||||||||||||
Balance as of December 31, 2012 | $ | 1,473 | $ | (20,661 | ) | $ | (5,645 | ) | $ | (24,833 | ) | |||||
Other comprehensive income (loss) before reclassifications | 323 | (704 | ) | (26,378 | ) | (26,759 | ) | |||||||||
Amounts reclassified from other comprehensive income | (480 | ) | 12,046 | — | 11,566 | |||||||||||
Net other comprehensive (loss) income | (157 | ) | 11,342 | (26,378 | ) | (15,193 | ) | |||||||||
Balance as of September 30, 2013 | $ | 1,316 | $ | (9,319 | ) | $ | (32,023 | ) | $ | (40,026 | ) | |||||
Discontinued_operations_Tables
Discontinued operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Summary of net assets of discontinued operations and income from discontinued operations, net | ' | ||||||||||||||||
The following is a summary of net assets of discontinued operations and income from discontinued operations, net (in thousands): | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Properties “held for sale,” net | $ | 4,510 | $ | 76,440 | |||||||||||||
Other assets | 14 | 4,546 | |||||||||||||||
Total assets | 4,524 | 80,986 | |||||||||||||||
Total liabilities | (32 | ) | (3,233 | ) | |||||||||||||
Net assets of discontinued operations | $ | 4,492 | $ | 77,753 | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenues | $ | 4 | $ | 8,418 | $ | 3,741 | $ | 26,556 | |||||||||
Operating expenses | 68 | 2,788 | 1,697 | 8,337 | |||||||||||||
Total revenues less operating expenses from discontinued operations | (64 | ) | 5,630 | 2,044 | 18,219 | ||||||||||||
Depreciation expense | — | 1,589 | 930 | 4,822 | |||||||||||||
(Gain) loss on sale of real estate | — | (1,562 | ) | 121 | (1,564 | ) | |||||||||||
Impairment of real estate | — | 9,799 | — | 9,799 | |||||||||||||
(Loss) income from discontinued operations, net (1) | $ | (64 | ) | $ | (4,196 | ) | $ | 993 | $ | 5,162 | |||||||
-1 | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale” as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Condensed_consolidating_financ1
Condensed consolidating financial information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Condensed consolidating financial information | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||||||
as of September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real Estate Equities, Inc. | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
(Issuer) | Real Estate | Non- | ||||||||||||||||||
Equities, L.P. | Guarantor | |||||||||||||||||||
(Guarantor | Subsidiaries | |||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments in real estate, net | $ | — | $ | — | $ | 6,613,761 | $ | — | $ | 6,613,761 | ||||||||||
Cash and cash equivalents | 14,667 | — | 39,172 | — | 53,839 | |||||||||||||||
Restricted cash | 61 | — | 30,593 | — | 30,654 | |||||||||||||||
Tenant receivables | — | — | 8,671 | — | 8,671 | |||||||||||||||
Deferred rent | — | — | 182,909 | — | 182,909 | |||||||||||||||
Deferred leasing and financing costs, net | 38,462 | — | 141,343 | — | 179,805 | |||||||||||||||
Investments | — | 11,828 | 117,335 | — | 129,163 | |||||||||||||||
Investments in and advances to affiliates | 6,119,819 | 5,655,063 | 116,004 | (11,890,886 | ) | — | ||||||||||||||
Other assets | 17,801 | — | 141,766 | — | 159,567 | |||||||||||||||
Total assets | $ | 6,190,810 | $ | 5,666,891 | $ | 7,391,554 | $ | (11,890,886 | ) | $ | 7,358,369 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 708,653 | $ | — | $ | 708,653 | ||||||||||
Unsecured senior notes payable | 1,048,190 | — | — | — | 1,048,190 | |||||||||||||||
Unsecured senior line of credit | 14,000 | — | — | — | 14,000 | |||||||||||||||
Unsecured senior bank term loans | 1,100,000 | — | — | — | 1,100,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 55,467 | — | 396,672 | — | 452,139 | |||||||||||||||
Dividends payable | 54,125 | — | 288 | — | 54,413 | |||||||||||||||
Total liabilities | 2,271,782 | — | 1,105,613 | — | 3,377,395 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,475 | — | 14,475 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,919,028 | 5,666,891 | 6,223,995 | (11,890,886 | ) | 3,919,028 | ||||||||||||||
Noncontrolling interests | — | — | 47,471 | — | 47,471 | |||||||||||||||
Total equity | 3,919,028 | 5,666,891 | 6,271,466 | (11,890,886 | ) | 3,966,499 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,190,810 | $ | 5,666,891 | $ | 7,391,554 | $ | (11,890,886 | ) | $ | 7,358,369 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments in real estate, net | $ | 38,616 | $ | — | $ | 6,385,962 | $ | — | $ | 6,424,578 | ||||||||||
Cash and cash equivalents | 98,567 | 1,913 | 40,491 | — | 140,971 | |||||||||||||||
Restricted cash | 52 | — | 39,895 | — | 39,947 | |||||||||||||||
Tenant receivables | 1 | — | 8,448 | — | 8,449 | |||||||||||||||
Deferred rent | 1,876 | — | 168,520 | — | 170,396 | |||||||||||||||
Deferred leasing and financing costs, net | 31,373 | — | 128,675 | — | 160,048 | |||||||||||||||
Investments | — | 12,591 | 102,457 | — | 115,048 | |||||||||||||||
Investments in and advances to affiliates | 5,833,368 | 5,358,883 | 110,100 | (11,302,351 | ) | — | ||||||||||||||
Intercompany note receivable | 3,021 | — | — | (3,021 | ) | — | ||||||||||||||
Other assets | 17,613 | — | 73,066 | — | 90,679 | |||||||||||||||
Total assets | $ | 6,024,487 | $ | 5,373,387 | $ | 7,057,614 | $ | (11,305,372 | ) | $ | 7,150,116 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 716,144 | $ | — | $ | 716,144 | ||||||||||
Unsecured senior notes payable | 549,805 | — | — | — | 549,805 | |||||||||||||||
Unsecured senior line of credit | 566,000 | — | — | — | 566,000 | |||||||||||||||
Unsecured senior bank term loans | 1,350,000 | — | — | — | 1,350,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 75,728 | — | 347,980 | — | 423,708 | |||||||||||||||
Dividends payable | 41,103 | — | 298 | — | 41,401 | |||||||||||||||
Intercompany notes payable | — | — | 3,021 | (3,021 | ) | — | ||||||||||||||
Total liabilities | 2,582,636 | — | 1,067,443 | (3,021 | ) | 3,647,058 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 14,564 | — | 14,564 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,441,851 | 5,373,387 | 5,928,964 | (11,302,351 | ) | 3,441,851 | ||||||||||||||
Noncontrolling interests | — | — | 46,643 | — | 46,643 | |||||||||||||||
Total equity | 3,441,851 | 5,373,387 | 5,975,607 | (11,302,351 | ) | 3,488,494 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,024,487 | $ | 5,373,387 | $ | 7,057,614 | $ | (11,305,372 | ) | $ | 7,150,116 | |||||||||
Condensed Consolidating Statements of Income | ' | |||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 116,302 | $ | — | $ | 116,302 | ||||||||||
Tenant recoveries | — | — | 38,757 | — | 38,757 | |||||||||||||||
Other income | 2,802 | (1 | ) | 3,965 | (3,195 | ) | 3,571 | |||||||||||||
Total revenues | 2,802 | (1 | ) | 159,024 | (3,195 | ) | 158,630 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 47,742 | — | 47,742 | |||||||||||||||
General and administrative | 10,141 | — | 4,720 | (3,195 | ) | 11,666 | ||||||||||||||
Interest | 10,238 | — | 5,933 | — | 16,171 | |||||||||||||||
Depreciation and amortization | 1,472 | — | 47,630 | — | 49,102 | |||||||||||||||
Loss on early extinguishment of debt | 1,432 | — | — | — | 1,432 | |||||||||||||||
Total expenses | 23,283 | — | 106,025 | (3,195 | ) | 126,113 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (20,481 | ) | (1 | ) | 52,999 | — | 32,517 | |||||||||||||
Equity in earnings of affiliates | 51,975 | 48,477 | 959 | (101,411 | ) | — | ||||||||||||||
Income from continuing operations | 31,494 | 48,476 | 53,958 | (101,411 | ) | 32,517 | ||||||||||||||
(Loss) income from discontinued operations, net | (1 | ) | — | (63 | ) | — | (64 | ) | ||||||||||||
Net income | 31,493 | 48,476 | 53,895 | (101,411 | ) | 32,453 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 960 | — | 960 | |||||||||||||||
Dividends on preferred stock | 6,472 | — | — | — | 6,472 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 442 | — | — | — | 442 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 24,579 | $ | 48,476 | $ | 52,935 | $ | (101,411 | ) | $ | 24,579 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 106,216 | $ | — | $ | 106,216 | ||||||||||
Tenant recoveries | — | — | 34,006 | — | 34,006 | |||||||||||||||
Other income | 2,785 | 51 | 3,209 | (3,417 | ) | 2,628 | ||||||||||||||
Total revenues | 2,785 | 51 | 143,431 | (3,417 | ) | 142,850 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 44,203 | — | 44,203 | |||||||||||||||
General and administrative | 9,587 | — | 6,300 | (3,417 | ) | 12,470 | ||||||||||||||
Interest | 11,785 | — | 5,307 | — | 17,092 | |||||||||||||||
Depreciation and amortization | 1,725 | — | 44,859 | — | 46,584 | |||||||||||||||
Total expenses | 23,097 | — | 100,669 | (3,417 | ) | 120,349 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (20,312 | ) | 51 | 42,762 | — | 22,501 | ||||||||||||||
Equity in earnings of affiliates | 41,380 | 42,064 | 804 | (84,248 | ) | — | ||||||||||||||
Income from continuing operations | 21,068 | 42,115 | 43,566 | (84,248 | ) | 22,501 | ||||||||||||||
(Loss) income from discontinued operations, net | (3,591 | ) | — | (605 | ) | — | (4,196 | ) | ||||||||||||
Net income | 17,477 | 42,115 | 42,961 | (84,248 | ) | 18,305 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 828 | — | 828 | |||||||||||||||
Dividends on preferred stock | 6,471 | — | — | — | 6,471 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 360 | — | — | — | 360 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 10,646 | $ | 42,115 | $ | 42,133 | $ | (84,248 | ) | $ | 10,646 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 342,821 | $ | — | $ | 342,821 | ||||||||||
Tenant recoveries | — | — | 110,291 | — | 110,291 | |||||||||||||||
Other income | 8,071 | (142 | ) | 11,636 | (9,432 | ) | 10,133 | |||||||||||||
Total revenues | 8,071 | (142 | ) | 464,748 | (9,432 | ) | 463,245 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 139,289 | — | 139,289 | |||||||||||||||
General and administrative | 32,574 | — | 12,644 | (9,432 | ) | 35,786 | ||||||||||||||
Interest | 32,048 | — | 18,121 | — | 50,169 | |||||||||||||||
Depreciation and amortization | 4,393 | — | 137,354 | — | 141,747 | |||||||||||||||
Loss on early extinguishment of debt | 1,992 | — | — | — | 1,992 | |||||||||||||||
Total expenses | 71,007 | — | 307,408 | (9,432 | ) | 368,983 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (62,936 | ) | (142 | ) | 157,340 | — | 94,262 | |||||||||||||
Equity in earnings of affiliates | 155,694 | 144,660 | 2,858 | (303,212 | ) | — | ||||||||||||||
Income from continuing operations | 92,758 | 144,518 | 160,198 | (303,212 | ) | 94,262 | ||||||||||||||
Income from discontinued operations, net | 347 | — | 646 | — | 993 | |||||||||||||||
Gain on sale of land parcel | — | — | 772 | — | 772 | |||||||||||||||
Net income | 93,105 | 144,518 | 161,616 | (303,212 | ) | 96,027 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 2,922 | — | 2,922 | |||||||||||||||
Dividends on preferred stock | 19,414 | — | — | — | 19,414 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 1,187 | — | — | — | 1,187 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 72,504 | $ | 144,518 | $ | 158,694 | $ | (303,212 | ) | $ | 72,504 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Rental | $ | — | $ | — | $ | 311,746 | $ | — | $ | 311,746 | ||||||||||
Tenant recoveries | — | — | 97,769 | — | 97,769 | |||||||||||||||
Other income | 7,593 | 891 | 16,095 | (9,940 | ) | 14,639 | ||||||||||||||
Total revenues | 7,593 | 891 | 425,610 | (9,940 | ) | 424,154 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 126,758 | — | 126,758 | |||||||||||||||
General and administrative | 32,030 | 1 | 13,034 | (9,940 | ) | 35,125 | ||||||||||||||
Interest | 34,460 | — | 16,780 | — | 51,240 | |||||||||||||||
Depreciation and amortization | 3,781 | — | 135,330 | — | 139,111 | |||||||||||||||
Loss on early extinguishment of debt | 2,225 | — | — | — | 2,225 | |||||||||||||||
Total expenses | 72,496 | 1 | 291,902 | (9,940 | ) | 354,459 | ||||||||||||||
Income (loss) from continuing operations before equity in earnings of affiliates | (64,903 | ) | 890 | 133,708 | — | 69,695 | ||||||||||||||
Equity in earnings of affiliates | 140,267 | 134,346 | 2,662 | (277,275 | ) | — | ||||||||||||||
Income from continuing operations | 75,364 | 135,236 | 136,370 | (277,275 | ) | 69,695 | ||||||||||||||
Income (loss) from discontinued operations, net | (1,033 | ) | — | 6,195 | — | 5,162 | ||||||||||||||
Gain on sale of land parcel | — | — | 1,864 | — | 1,864 | |||||||||||||||
Net income | 74,331 | 135,236 | 144,429 | (277,275 | ) | 76,721 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 2,390 | — | 2,390 | |||||||||||||||
Dividends on preferred stock | 20,857 | — | — | — | 20,857 | |||||||||||||||
Preferred stock redemption charge | 5,978 | — | — | — | 5,978 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 866 | — | — | — | 866 | |||||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 46,630 | $ | 135,236 | $ | 142,039 | $ | (277,275 | ) | $ | 46,630 | |||||||||
Condensed Consolidating Statement Comprehensive Income | ' | |||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 31,493 | $ | 48,476 | $ | 53,895 | $ | (101,411 | ) | $ | 32,453 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains (losses) on marketable securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | (796 | ) | 759 | — | (37 | ) | |||||||||||||
Reclassification adjustment for (gains) losses included in net income | — | 519 | (769 | ) | — | (250 | ) | |||||||||||||
Unrealized gains (losses) on marketable securities, net | — | (277 | ) | (10 | ) | — | (287 | ) | ||||||||||||
Unrealized gains on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap gains arising during the period | (676 | ) | — | — | — | (676 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 3,904 | — | — | — | 3,904 | |||||||||||||||
Unrealized gains on interest rate swaps, net | 3,228 | — | — | — | 3,228 | |||||||||||||||
Foreign currency translation losses | — | — | (3,404 | ) | — | (3,404 | ) | |||||||||||||
Total other comprehensive income (loss) | 3,228 | (277 | ) | (3,414 | ) | — | (463 | ) | ||||||||||||
Comprehensive income | 34,721 | 48,199 | 50,481 | (101,411 | ) | 31,990 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (933 | ) | — | (933 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 34,721 | $ | 48,199 | $ | 49,548 | $ | (101,411 | ) | $ | 31,057 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 17,477 | $ | 42,115 | $ | 42,961 | $ | (84,248 | ) | $ | 18,305 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains (losses) on marketable securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | 23 | 773 | — | 796 | |||||||||||||||
Reclassification adjustment for losses included in net income | — | (11 | ) | (1,410 | ) | — | (1,421 | ) | ||||||||||||
Unrealized gains (losses) on marketable securities, net | — | 12 | (637 | ) | — | (625 | ) | |||||||||||||
Unrealized gains (losses) on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap gains (losses) arising during the period | (2,818 | ) | — | — | — | (2,818 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 5,956 | — | — | — | 5,956 | |||||||||||||||
Unrealized gains (losses) on interest rate swaps, net | 3,138 | — | — | — | 3,138 | |||||||||||||||
Foreign currency translation losses | — | — | 15,104 | — | 15,104 | |||||||||||||||
Total other comprehensive income | 3,138 | 12 | 14,467 | — | 17,617 | |||||||||||||||
Comprehensive income | 20,615 | 42,127 | 57,428 | (84,248 | ) | 35,922 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (805 | ) | — | (805 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 20,615 | $ | 42,127 | $ | 56,623 | $ | (84,248 | ) | $ | 35,117 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 93,105 | $ | 144,518 | $ | 161,616 | $ | (303,212 | ) | $ | 96,027 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains on marketable securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | — | (391 | ) | 714 | — | 323 | ||||||||||||||
Reclassification adjustment for (gains) losses included in net income | — | 144 | (624 | ) | — | (480 | ) | |||||||||||||
Unrealized gains on marketable securities, net | — | (247 | ) | 90 | — | (157 | ) | |||||||||||||
Unrealized gains on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (704 | ) | — | — | — | (704 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 12,046 | — | — | — | 12,046 | |||||||||||||||
Unrealized gains on interest rate swaps, net | 11,342 | — | — | — | 11,342 | |||||||||||||||
Foreign currency translation losses | — | — | (26,461 | ) | — | (26,461 | ) | |||||||||||||
Total other comprehensive income | 11,342 | (247 | ) | (26,371 | ) | — | (15,276 | ) | ||||||||||||
Comprehensive income | 104,447 | 144,271 | 135,245 | (303,212 | ) | 80,751 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (2,839 | ) | — | (2,839 | ) | |||||||||||||
Comprehensive income attributable to Alexandria's common stockholders | $ | 104,447 | $ | 144,271 | $ | 132,406 | $ | (303,212 | ) | $ | 77,912 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria | Alexandria | Combined | Eliminations | Consolidated | ||||||||||||||||
Real Estate | Real Estate | Non- | ||||||||||||||||||
Equities, Inc. | Equities, L.P. | Guarantor | ||||||||||||||||||
(Issuer) | (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Net income | $ | 74,331 | $ | 135,236 | $ | 144,429 | $ | (277,275 | ) | $ | 76,721 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains (losses) on marketable securities: | ||||||||||||||||||||
Unrealized holding gains arising during the period | — | 10 | 1,353 | — | 1,363 | |||||||||||||||
Reclassification adjustment for (gains) losses included in net income | — | 172 | (2,279 | ) | — | (2,107 | ) | |||||||||||||
Unrealized gains (losses) on marketable securities, net | — | 182 | (926 | ) | — | (744 | ) | |||||||||||||
Unrealized gains on interest rate swaps: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (9,982 | ) | — | — | — | (9,982 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 17,626 | — | — | — | 17,626 | |||||||||||||||
Unrealized gains on interest rate swaps, net | 7,644 | — | — | — | 7,644 | |||||||||||||||
Foreign currency translation losses | — | — | 7,871 | — | 7,871 | |||||||||||||||
Total other comprehensive income | 7,644 | 182 | 6,945 | — | 14,771 | |||||||||||||||
Comprehensive income | 81,975 | 135,418 | 151,374 | (277,275 | ) | 91,492 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (2,379 | ) | — | (2,379 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 81,975 | $ | 135,418 | $ | 148,995 | $ | (277,275 | ) | $ | 89,113 | |||||||||
Condensed Consolidating Statement Cash Flows | ' | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 93,105 | $ | 144,518 | $ | 161,616 | $ | (303,212 | ) | $ | 96,027 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 4,393 | — | 138,284 | — | 142,677 | |||||||||||||||
Loss on early extinguishment of debt | 1,992 | — | — | — | 1,992 | |||||||||||||||
Gain on sale of land parcel | — | — | (772 | ) | — | (772 | ) | |||||||||||||
Loss on sale of real estate | — | — | 121 | — | 121 | |||||||||||||||
Amortization of loan fees and costs | 5,148 | — | 2,152 | — | 7,300 | |||||||||||||||
Amortization of debt premiums/discounts | 75 | — | 308 | — | 383 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (2,490 | ) | — | (2,490 | ) | |||||||||||||
Deferred rent | — | — | (20,007 | ) | — | (20,007 | ) | |||||||||||||
Stock compensation expense | 11,541 | — | — | — | 11,541 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (155,694 | ) | (144,660 | ) | (2,858 | ) | 303,212 | — | ||||||||||||
Gain on sales of investments | — | (152 | ) | (4,564 | ) | — | (4,716 | ) | ||||||||||||
Loss on sales of investments | — | 298 | 231 | — | 529 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | (8 | ) | — | 1,251 | — | 1,243 | ||||||||||||||
Tenant receivables | 1 | — | (272 | ) | — | (271 | ) | |||||||||||||
Deferred leasing costs | 2,421 | — | (39,611 | ) | — | (37,190 | ) | |||||||||||||
Other assets | (5,570 | ) | — | (5,858 | ) | — | (11,428 | ) | ||||||||||||
Intercompany receivables and payables | 3,021 | — | (3,021 | ) | — | — | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | (9,599 | ) | — | 61,036 | — | 51,437 | ||||||||||||||
Net cash provided by (used in) operating activities | (49,174 | ) | 4 | 285,546 | — | 236,376 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of properties | 10,796 | — | 91,019 | — | 101,815 | |||||||||||||||
Additions to properties | 3,539 | — | (453,679 | ) | — | (450,140 | ) | |||||||||||||
Purchase of properties | — | — | (24,537 | ) | — | (24,537 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | 5,711 | — | 5,711 | |||||||||||||||
Contributions to unconsolidated real estate entity | — | — | (13,881 | ) | — | (13,881 | ) | |||||||||||||
Investments in subsidiaries | (126,967 | ) | (170,033 | ) | (3,045 | ) | 300,045 | — | ||||||||||||
Additions to investments | — | — | (22,835 | ) | — | (22,835 | ) | |||||||||||||
Proceeds from investments | — | 1,594 | 11,156 | — | 12,750 | |||||||||||||||
Net cash provided by (used in) investing activities | $ | (112,632 | ) | $ | (168,439 | ) | $ | (410,091 | ) | $ | 300,045 | $ | (391,117 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Financing Activities | ||||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 26,319 | $ | — | $ | 26,319 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (34,120 | ) | — | (34,120 | ) | |||||||||||||
Proceeds from issuance of senior notes payable | 498,561 | — | — | — | 498,561 | |||||||||||||||
Principal borrowings from unsecured senior line of credit | 319,000 | — | — | — | 319,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (871,000 | ) | — | — | — | (871,000 | ) | |||||||||||||
Repayments of unsecured senior bank term loans | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||
Repurchase of unsecured senior convertible notes | (384 | ) | — | — | — | (384 | ) | |||||||||||||
Transfer to/from parent company | — | 166,522 | 133,523 | (300,045 | ) | — | ||||||||||||||
Change in restricted cash related to financings | (1 | ) | — | 924 | — | 923 | ||||||||||||||
Deferred financing costs paid | (14,175 | ) | — | (2,072 | ) | — | (16,247 | ) | ||||||||||||
Proceeds from common stock offerings | 535,686 | — | — | — | 535,686 | |||||||||||||||
Dividends paid on common stock | (120,367 | ) | — | — | — | (120,367 | ) | |||||||||||||
Dividends paid on preferred stock | (19,414 | ) | — | — | — | (19,414 | ) | |||||||||||||
Distributions to noncontrolling interests | — | — | (2,100 | ) | — | (2,100 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 77,906 | 166,522 | 122,474 | (300,045 | ) | 66,857 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 752 | — | 752 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (83,900 | ) | (1,913 | ) | (1,319 | ) | — | (87,132 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 98,567 | 1,913 | 40,491 | — | 140,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 14,667 | $ | — | $ | 39,172 | $ | — | $ | 53,839 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 16,569 | $ | — | $ | 17,712 | $ | — | $ | 34,281 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Note receivable from sale of real estate | $ | 29,820 | $ | — | $ | 9,000 | $ | — | $ | 38,820 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Operating Activities | ||||||||||||||||||||
Net income | $ | 74,331 | $ | 135,236 | $ | 144,429 | $ | (277,275 | ) | $ | 76,721 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 3,781 | — | 140,152 | — | 143,933 | |||||||||||||||
Loss on early extinguishment of debt | 2,225 | — | — | — | 2,225 | |||||||||||||||
Gain on sale of land parcel | — | — | (1,864 | ) | — | (1,864 | ) | |||||||||||||
Gain on sale of real estate | — | — | (1,564 | ) | — | (1,564 | ) | |||||||||||||
Non-cash impairment of real estate | 4,799 | 5,000 | 9,799 | |||||||||||||||||
Amortization of loan fees and costs | 5,307 | — | 2,020 | — | 7,327 | |||||||||||||||
Amortization of debt premiums/discounts | 104 | — | 297 | — | 401 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (2,356 | ) | — | (2,356 | ) | |||||||||||||
Deferred rent | 164 | — | (19,380 | ) | — | (19,216 | ) | |||||||||||||
Stock compensation expense | 10,412 | — | — | — | 10,412 | |||||||||||||||
Equity in loss related to investments | — | 26 | — | — | 26 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (140,267 | ) | (134,346 | ) | (2,662 | ) | 277,275 | — | ||||||||||||
Gain on sales of investments | — | (1,109 | ) | (11,207 | ) | — | (12,316 | ) | ||||||||||||
Loss on sales of investments | — | 195 | 1,412 | — | 1,607 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | (8 | ) | — | 449 | — | 441 | ||||||||||||||
Tenant receivables | 11 | — | (2,648 | ) | — | (2,637 | ) | |||||||||||||
Deferred leasing costs | 4,232 | — | (27,829 | ) | — | (23,597 | ) | |||||||||||||
Other assets | 2,603 | — | (5,833 | ) | — | (3,230 | ) | |||||||||||||
Intercompany receivables and payables | (49 | ) | — | 49 | — | — | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 3,592 | — | 37,786 | — | 41,378 | |||||||||||||||
Net cash provided by (used in) operating activities | (28,763 | ) | 2 | 256,251 | — | 227,490 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of properties | — | — | 36,179 | — | 36,179 | |||||||||||||||
Additions to properties | (1,192 | ) | — | (404,874 | ) | — | (406,066 | ) | ||||||||||||
Purchase of properties | — | — | (42,171 | ) | — | (42,171 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (11,453 | ) | — | (11,453 | ) | |||||||||||||
Distribution from unconsolidated real estate entity | — | — | 22,250 | — | 22,250 | |||||||||||||||
Contributions to unconsolidated real estate entity | — | — | (5,042 | ) | — | (5,042 | ) | |||||||||||||
Investments in subsidiaries | (147,782 | ) | (112,504 | ) | (389 | ) | 260,675 | — | ||||||||||||
Additions to investments | — | (160 | ) | (21,837 | ) | — | (21,997 | ) | ||||||||||||
Proceeds from investments | — | 1,944 | 17,961 | — | 19,905 | |||||||||||||||
Net cash provided by (used in) investing activities | $ | (148,974 | ) | $ | (110,720 | ) | $ | (409,376 | ) | $ | 260,675 | $ | (408,395 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Alexandria Real | Alexandria Real | Combined | Eliminations | Consolidated | ||||||||||||||||
Estate Equities, | Estate Equities, | Non-Guarantor | ||||||||||||||||||
Inc. (Issuer) | L.P. (Guarantor | Subsidiaries | ||||||||||||||||||
Subsidiary) | ||||||||||||||||||||
Financing Activities | ||||||||||||||||||||
Borrowings from secured notes payable | $ | — | $ | — | $ | 2,874 | $ | — | $ | 2,874 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (8,125 | ) | — | (8,125 | ) | |||||||||||||
Proceeds from issuance of unsecured senior notes payable | 549,533 | — | — | — | 549,533 | |||||||||||||||
Principal borrowings from unsecured senior line of credit and unsecured senior bank term loan | 623,147 | — | — | — | 623,147 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (580,147 | ) | — | — | — | (580,147 | ) | |||||||||||||
Repayment of unsecured senior bank term loan | (250,000 | ) | — | — | — | (250,000 | ) | |||||||||||||
Repurchase of unsecured senior convertible notes | (84,801 | ) | — | — | — | (84,801 | ) | |||||||||||||
Redemption of Series C Cumulative Redeemable Preferred Stock | (129,638 | ) | — | — | — | (129,638 | ) | |||||||||||||
Proceeds from issuance of Series E Cumulative Redeemable Preferred Stock | 124,868 | — | — | — | 124,868 | |||||||||||||||
Transfer to/from parent company | — | 110,718 | 149,957 | (260,675 | ) | — | ||||||||||||||
Change in restricted cash related to financings | — | — | (10,476 | ) | — | (10,476 | ) | |||||||||||||
Deferred financing costs paid | (19,949 | ) | — | (5,352 | ) | — | (25,301 | ) | ||||||||||||
Proceeds from common stock offering | 98,443 | — | — | — | 98,443 | |||||||||||||||
Proceeds from exercise of stock options | 155 | — | — | — | 155 | |||||||||||||||
Dividends paid on common stock | (92,743 | ) | — | — | — | (92,743 | ) | |||||||||||||
Dividends paid on preferred stock | (21,348 | ) | — | — | — | (21,348 | ) | |||||||||||||
Distributions to redeemable noncontrolling interests | — | — | (943 | ) | — | (943 | ) | |||||||||||||
Redemption of redeemable noncontrolling interests | 4 | — | (154 | ) | — | (150 | ) | |||||||||||||
Contributions by noncontrolling interests | — | — | 1,626 | — | 1,626 | |||||||||||||||
Distributions to noncontrolling interests | — | — | (770 | ) | — | (770 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 217,524 | 110,718 | 128,637 | (260,675 | ) | 196,204 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 1,066 | — | 1,066 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 39,787 | — | (23,422 | ) | — | 16,365 | ||||||||||||||
Cash and cash equivalents at beginning of period | 10,608 | — | 67,931 | — | 78,539 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 50,395 | $ | — | $ | 44,509 | $ | — | $ | 94,904 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 23,226 | $ | — | $ | 7,259 | $ | — | $ | 30,485 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Note receivable from sale of real estate | $ | — | $ | — | $ | 6,125 | $ | — | $ | 6,125 | ||||||||||
Basis_of_presentation_Details
Basis of presentation (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Maximum | ' |
Basis of presentation | ' |
Percentage of ownership interest criteria | 100.00% |
Land improvements | ' |
Property, plant and equipment depreciated on a straight-line basis using an estimated life | ' |
Estimated useful life | '20 years |
Buildings and building improvements | Maximum | ' |
Property, plant and equipment depreciated on a straight-line basis using an estimated life | ' |
Estimated useful life | '40 years |
Basis_of_presentation_Details_
Basis of presentation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' | ' | ' |
Maximum expected period of sale of property (in years) | ' | ' | '1 year | ' | ' |
Cost method investment ownership percentage | 10.00% | ' | 10.00% | ' | 10.00% |
Minimum percentage of taxable income to be distributed | ' | ' | 100.00% | ' | ' |
The Company generally distributes this percentage or more of its taxable income | ' | ' | 100.00% | ' | ' |
Provision for federal income taxes | ' | ' | $0 | ' | ' |
The "more likely than not" probability threshold (as a percent) | ' | ' | 50.00% | ' | ' |
Unrecognized tax benefits | 0 | ' | 0 | ' | ' |
Interest income included in other income | 1,200,000 | 1,000,000 | 3,500,000 | 2,500,000 | ' |
Allowance for estimated losses | ' | ' | $0 | ' | $0 |
Percentage of leases which are triple net leases | 94.00% | ' | 94.00% | ' | ' |
Percentage of leases containing effective annual rent escalations | 95.00% | ' | 95.00% | ' | ' |
Percentage of leases providing for recapture of certain capital expenditures | 92.00% | ' | 92.00% | ' | ' |
Investments_in_real_estate_Sch
Investments in real estate Schedule of investment in real estates (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Real estate properties | ' | ' | |
Land (related to rental properties) | $542,511 | $522,664 | |
Buildings and building improvements | 5,315,447 | 4,933,314 | |
Other improvements | 170,078 | 189,793 | |
Rental properties | 6,028,036 | 5,645,771 | |
Less: accumulated depreciation | -915,494 | -875,035 | |
Rental properties, net | 5,112,542 | 4,770,736 | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Investments in real estate, net | 6,613,761 | 6,424,578 | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Development in process | 806,016 | 842,179 | |
Active development in North America | North America | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Development in process | 594,973 | 431,578 | |
Investment in unconsolidated joint venture | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Development in process | 42,537 | [1] | 28,656 |
Active redevelopment in North America | North America | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Development in process | 24,960 | 199,744 | |
Active development and redevelopment in Asia | Asia | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Development in process | 97,319 | 101,602 | |
Generic infrastructure/building improvement projects in North America | North America | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Development in process | 46,227 | 80,599 | |
Land/future value-added projects: | ' | ' | |
Land/future value-added projects: | ' | ' | |
Land available for development | 695,203 | 811,663 | |
Land undergoing predevelopment activities (CIP) in North America (2) | North America | ' | ' | |
Land/future value-added projects: | ' | ' | |
Land available for development | 351,062 | 433,310 | |
Land held for future development in North America | North America | ' | ' | |
Land/future value-added projects: | ' | ' | |
Land available for development | 190,427 | 296,039 | |
Land held for future development/undergoing predevelopment activities (CIP) in Asia | Asia | ' | ' | |
Land/future value-added projects: | ' | ' | |
Land available for development | 77,274 | 82,314 | |
Land subject to sale negotiations | ' | ' | |
Land/future value-added projects: | ' | ' | |
Land available for development | 76,440 | ' | |
Rental properties, net and Construction in progress ("CIP")/current value-added projects | ' | ' | |
Construction in progress ("CIP")/current value-added projects: | ' | ' | |
Investments in real estate, net | $5,918,558 | $5,612,915 | |
[1] | The book value for this unconsolidated joint venture represents our equity investment in the project. |
Investments_in_real_estate_Inv
Investments in real estate Investment in Unconsolidated Entity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Greater Boston market | Construction Loans | LIBOR | LIBOR | Dana-Farber Cancer Institute, Inc. | |||
Equity Method Investee | Greater Boston market | Construction Loans | Construction Loans | Greater Boston market | |||
sqft | Equity Method Investee | Greater Boston market | Greater Boston market | Equity Method Investee | |||
Equity Method Investee | Equity Method Investee | ||||||
Option | |||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Equity interest percentage (in percent) | ' | ' | 27.50% | ' | ' | ' | ' |
Area of office property (square foot) | ' | ' | 413,536 | ' | ' | ' | ' |
Pre-Leased percentage of property | ' | ' | ' | ' | ' | ' | 37.00% |
Equity method investments amount | $6,000 | $6,000 | $42,500,000 | ' | ' | ' | ' |
Aggregate commitments of construction loan | ' | ' | ' | 213,200,000 | ' | ' | ' |
Drawn and outstanding construction loan | ' | ' | ' | $75,000,000 | ' | ' | ' |
Base rate | ' | ' | ' | ' | 'LIBOR | ' | ' |
Basis spread on LIBOR (as a percent) | ' | ' | ' | ' | 3.75% | ' | ' |
Minimum stated interest rate | ' | ' | ' | ' | ' | 5.25% | ' |
Number of one-year extension options | ' | ' | ' | ' | 2 | ' | ' |
Investments_in_real_estate_Lan
Investments in real estate Land Held for Future Development (Details) | Sep. 30, 2013 |
Transaction | |
Rental properties, net, construction in progress, and land held for (future value-added projects) | ' |
Number of construction or preconstruction activities | 0 |
Alexandria Center at Kendall Square in East Cambridge Massachusetts | ' |
Rental properties, net, construction in progress, and land held for (future value-added projects) | ' |
Square feet undergoing preconstruction activities (square foot) | 1,200,000 |
Preconstruction Prior to Vertical Construction | 50 and 100 Binney Street | ' |
Rental properties, net, construction in progress, and land held for (future value-added projects) | ' |
Area of office property (square foot) | 1,200,000 |
Investments_in_real_estate_Rea
Investments in real estate Real Estate Asset Sales (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Dispositions | ' | ' | ' | ' |
Gain (loss on) sale of land parcels | $0 | $0 | $772,000 | $1,864,000 |
Building | ' | ' | ' | ' |
Dispositions | ' | ' | ' | ' |
Number of real estate properties sold | ' | ' | 7 | ' |
Aggregate consideration received | ' | ' | 128,600,000 | ' |
Number of properties sold at a gain | ' | ' | 4 | ' |
Gain on sale of properties net of tax | ' | ' | 271,000 | ' |
Number of properties sold at a loss | ' | ' | 3 | ' |
Loss on sale of properties net of tax | ' | ' | -392,000 | ' |
Land | ' | ' | ' | ' |
Dispositions | ' | ' | ' | ' |
Number of real estate properties sold | ' | ' | 3 | ' |
Aggregate consideration received | ' | ' | 18,100,000 | ' |
Gain (loss on) sale of land parcels | 772,000 | ' | ' | ' |
Land | San Franciso Bay Area | ' | ' | ' | ' |
Dispositions | ' | ' | ' | ' |
Number of real estate properties sold | ' | ' | 2 | ' |
Gain (loss on) sale of land parcels | 381,000 | ' | ' | ' |
Land | New York City | ' | ' | ' | ' |
Dispositions | ' | ' | ' | ' |
Number of real estate properties sold | ' | ' | 1 | ' |
Gain (loss on) sale of land parcels | $391,000 | ' | ' | ' |
Investments_Details
Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investments in privately held entities | ' | ' | ' | ' | ' |
Unrealized losses related to investments in privately held entities | ' | ' | $0 | ' | $0 |
“Available-for-sale†securities, cost basis | 1,940,000 | ' | 1,940,000 | ' | 1,236,000 |
Gross unrealized gains | 1,708,000 | ' | 1,708,000 | ' | 1,561,000 |
Gross unrealized losses | -392,000 | ' | -392,000 | ' | -88,000 |
“Available-for-sale†securities, at fair value | 3,256,000 | ' | 3,256,000 | ' | 2,709,000 |
Investments accounted for under cost method | 125,901,000 | ' | 125,901,000 | ' | 112,333,000 |
Investments accounted for under equity method | 6,000 | ' | 6,000 | ' | 6,000 |
Total investments | 129,163,000 | ' | 129,163,000 | ' | 115,048,000 |
Net investment income included in other income | ' | ' | ' | ' | ' |
Gross realized gains | 2,050,000 | 1,190,000 | 4,716,000 | 12,316,000 | ' |
Gross realized losses | 0 | -518,000 | -529,000 | -1,607,000 | ' |
Equity in loss related to equity method investments | ' | 0 | 0 | -26,000 | ' |
Net investment income | 2,050,000 | 672,000 | 4,187,000 | 10,683,000 | ' |
Amount of gains (losses) reclassified from accumulated other comprehensive income to realized gains, net | $250,000 | $1,421,000 | $480,000 | $2,107,000 | ' |
Secured_and_unsecured_senior_d2
Secured and unsecured senior debt Narratives (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 7 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 29, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 26, 2013 | Jul. 26, 2013 | Jul. 26, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||||
$1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | Senior Notes | Senior Notes | Unsecured Senior Notes Due in April 2022 | Unsecured Senior Notes Due in April 2022 | Unsecured Bank Term Loan 2016 | Unsecured Bank Term Loan 2016 | Unsecured Bank Term Loan 2016 | Minimum | Maximum | Greater Boston market | Greater Boston market | Eurodollar | LIBOR | LIBOR | |||||||||
2016 Unsecured Senior Bank Term Loan | 2016 Unsecured Senior Bank Term Loan | 2016 Unsecured Senior Bank Term Loan | Equity Method Investee | Equity Method Investee | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | Greater Boston market | |||||||||||||||||||
Construction Loans | Equity Method Investee | |||||||||||||||||||||||||
Construction Loans | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Equity interest percentage (in percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27.50% | ' | ' | ' | ' | ||||
Public offering of senior notes payable | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.90% | ' | ' | 4.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Price as a percentage of principal amount of notes payable | ' | ' | ' | ' | ' | ' | ' | ' | 99.71% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Yield rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.94% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturity date | ' | ' | ' | ' | ' | ' | 3-Jan-19 | [1] | ' | 15-Jun-23 | [1] | ' | ' | 1-Apr-22 | [1] | ' | 31-Jul-16 | [1] | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in subsidiary (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Repayment of outstanding principal | ' | ' | 250,000,000 | 250,000,000 | ' | ' | ' | ' | ' | 150,000,000 | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Loss on early extinguishment of debt | 1,432,000 | 0 | 1,992,000 | 2,225,000 | ' | ' | ' | ' | ' | 560,000 | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Expected prepayment of debt period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '3 years | ' | ' | ' | ' | ' | ||||
Principal amount | 2,870,843,000 | ' | 2,870,843,000 | ' | ' | ' | 14,000,000 | ' | 1,048,190,000 | ' | ' | ' | 500,000,000 | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Applicable margin (as a percent) | ' | ' | ' | ' | ' | ' | 1.10% | [2] | 1.20% | ' | ' | ' | ' | 1.20% | 1.20% | 1.75% | ' | ' | ' | ' | 1.00% | 1.10% | 3.75% | |||
Annual facility fee (as a percent) | ' | ' | ' | ' | 0.20% | 0.20% | 0.20% | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Aggregate commitments of construction loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 213,200,000 | ' | ' | ' | ||||
Drawn and outstanding construction loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75,000,000 | ' | ' | ' | ||||
[1] | Includes any extension options that we control. | |||||||||||||||||||||||||
[2] | In addition to the stated rate, the line of credit is subject to an annual facility fee of 0.20%. |
Secured_and_unsecured_senior_d3
Secured and unsecured senior debt Schedule of secured and unsecured senior debts (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | $2,587,316 | |
Unhedged Variable rate | 283,527 | |
Principal amount | 2,870,843 | |
Percentage of Total | 100.00% | |
Effective rate (as a percent) | 3.91% | [1] |
Weighted Average Remaining Terms (in years) | '5 years 6 months 12 days | |
Percentage of fixed rate/hedged total debt | 90.00% | |
Percentage of unhedged floating rate total debt | 10.00% | |
Secured Debt | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 589,126 | |
Unhedged Variable rate | 119,527 | |
Principal amount | 708,653 | |
Percentage of Total | 24.70% | |
Effective rate (as a percent) | 5.47% | [1] |
Weighted Average Remaining Terms (in years) | '2 years 6 months | |
Senior Notes | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 1,048,190 | |
Unhedged Variable rate | 0 | |
Principal amount | 1,048,190 | |
Percentage of Total | 36.50% | |
Effective rate (as a percent) | 4.29% | [1] |
Weighted Average Remaining Terms (in years) | '9 years 1 month 6 days | |
Line of Credit | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 0 | |
Unhedged Variable rate | 14,000 | |
Principal amount | 14,000 | |
Percentage of Total | 0.50% | |
Effective rate (as a percent) | 1.28% | [1] |
Weighted Average Remaining Terms (in years) | '5 years 3 months 12 days | |
Unsecured Bank Term Loan 2016 | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 350,000 | |
Unhedged Variable rate | 150,000 | |
Principal amount | 500,000 | |
Percentage of Total | 17.40% | |
Effective rate (as a percent) | 1.70% | [1] |
Weighted Average Remaining Terms (in years) | '2 years 9 months 12 days | |
Unsecured Bank Term Loan 2019 | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 600,000 | |
Unhedged Variable rate | 0 | |
Principal amount | $600,000 | |
Percentage of Total | 20.90% | |
Effective rate (as a percent) | 3.30% | [1] |
Weighted Average Remaining Terms (in years) | '5 years 3 months 12 days | |
[1] | Represents the weighted average contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. |
Secured_and_unsecured_senior_d4
Secured and unsecured senior debt Outstanding consolidated indebtedness (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Jul. 26, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Secured notes payable | Secured notes payable from insurance co. maturing on 4/1/14 | Secured notes payable from bank maturing on 4/20/14 | Secured notes payable from bank maturing on 7/1/14 | Secured notes payable from bank maturing on 11/1/14 | Other secured notes payable maturing on 11/18/14 | Secured notes payable from bank maturing on 6/1/15 | CMBS maturing on 1/1/16 | CMBS maturing on 4/1/16 | CMBS maturing on 8/1/16 | Secured notes payable maturing on 7/1/15 | Secured notes payable maturing on 06/1/16 | Secured notes payable maturing on 8/23/17 | Other secured notes payable maturing on 4/1/20 | Secured notes payable from bank maturing on 6/1/37 | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | $1.5 billion unsecured senior line of credit | 2016 Unsecured Senior Bank Term Loan | 2016 Unsecured Senior Bank Term Loan | 2016 Unsecured Senior Bank Term Loan | 2016 Unsecured Senior Bank Term Loan | Unsecured Bank Term Loan 2019 | Unsecured Bank Term Loan 2019 | Unsecured Bank Term Loan 2019 | Unsecured Bank Term Loan 2019 | Unsecured Senior Notes Due in April 2022 | Unsecured Senior Notes 2023 | ||||||||||||||||||||||||||
Option | Option | Extension_Option | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Extension_Option | Extension_Option | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of fixed rate/hedged and floating rate debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Fixed Rate/Hedged Variable Rate | $2,587,316,000 | $2,471,000 | $229,176,000 | $12,693,000 | $583,143,000 | $1,668,000 | $1,758,165,000 | $589,126,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $0 | ' | ' | $350,000,000 | $350,000,000 | ' | $600,000,000 | $600,000,000 | ' | ' | ' | ||||||||||||||||||||||||
Unhedged Variable rate | 283,527,000 | 60,000 | 76,240,000 | 43,227,000 | 150,000,000 | 0 | 14,000,000 | 119,527,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | 14,000,000 | ' | ' | 150,000,000 | 150,000,000 | ' | 0 | 0 | ' | ' | ' | ||||||||||||||||||||||||
Principal amount | 2,870,843,000 | 2,531,000 | 305,416,000 | 55,920,000 | 733,143,000 | 1,668,000 | 1,772,165,000 | 708,653,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | ' | 14,000,000 | ' | ' | 500,000,000 | 500,000,000 | ' | 600,000,000 | 600,000,000 | ' | ' | ' | ||||||||||||||||||||||||
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.41% | 5.26% | 2.17% | 6.05% | 5.39% | 6.00% | 5.64% | 5.73% | 5.82% | 6.35% | ' | ' | ' | 7.75% | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.60% | 3.90% | ||||||||||||||||||||||||
Base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | 'LIBOR | ' | ' | 'LIBOR | 'LIBOR | [1] | 'LIBOR | 'LIBOR | ' | 'LIBOR | 'LIBOR | ' | 'LIBOR | ' | ' | ' | |||||||||||||||||||||||
Basis spread on LIBOR (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.40% | 1.35% | ' | ' | ' | ' | 1.10% | [1] | 1.20% | 1.10% | [1] | 1.75% | ' | 1.20% | 1.20% | ' | 1.20% | 1.20% | 1.50% | ' | ' | ||||||||||||||||||||||
Effective rate (as a percent) | 3.91% | [2] | ' | ' | ' | ' | ' | ' | 5.47% | [2] | 5.59% | [2] | 2.17% | [2] | 4.88% | [2] | 4.00% | [2] | 6.00% | [2] | 4.50% | [2] | 5.73% | [2] | 5.82% | [2] | 6.35% | [2] | 1.69% | [2] | 1.59% | [2] | 1.54% | [2] | 7.75% | [2] | 6.50% | [2] | ' | ' | 1.28% | [2] | ' | 1.28% | [2] | ' | ' | 1.70% | [2] | 1.70% | [2] | ' | 3.30% | [2] | 3.30% | [2] | ' | 4.61% | 3.94% | ||
Maturity date | ' | ' | ' | ' | ' | ' | ' | ' | 1-Apr-14 | [3] | 20-Apr-14 | [3],[4] | 1-Jul-14 | [3] | 1-Nov-14 | [3] | 18-Nov-14 | [3] | 1-Jun-15 | [3] | 1-Jan-16 | [3] | 1-Apr-16 | [3] | 1-Aug-16 | [3] | 1-Jul-15 | [3],[5] | 1-Jun-16 | [3],[6] | 23-Aug-17 | [3],[7] | 1-Apr-20 | [3] | 1-Jun-37 | [3] | ' | ' | 3-Jan-19 | [3] | ' | ' | ' | ' | 31-Jul-16 | [3] | ' | ' | 3-Jan-19 | [3] | ' | ' | 1-Apr-22 | [3] | 15-Jun-23 | [3] | |||||
Aggregate commitments of construction loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000,000 | 33,000,000 | 245,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Annual facility fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.20% | 0.20% | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Number of extensions on line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Future principal payments due on secured and unsecured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
2013 | ' | ' | ' | ' | ' | ' | ' | 2,677,000 | 979,000 | 0 | 24,000 | 30,000 | 60,000 | 22,000 | 416,000 | 221,000 | 580,000 | 0 | 0 | 0 | 345,000 | 0 | ' | ' | 0 | ' | 0 | ' | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | ||||||||||||||||||||||||
2014 | ' | ' | ' | ' | ' | ' | ' | 305,615,000 | 208,683,000 | 76,000,000 | 6,458,000 | 7,495,000 | 240,000 | 138,000 | 1,713,000 | 931,000 | 2,487,000 | 0 | 0 | 0 | 1,453,000 | 17,000 | ' | ' | 0 | ' | 0 | ' | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | ||||||||||||||||||||||||
2015 | ' | ' | ' | ' | ' | ' | ' | 56,059,000 | 0 | 0 | 0 | 0 | 0 | 5,788,000 | 1,816,000 | 988,000 | 2,652,000 | 43,227,000 | 0 | 0 | 1,570,000 | 18,000 | ' | ' | 0 | ' | 0 | ' | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | ||||||||||||||||||||||||
2016 | ' | ' | ' | ' | ' | ' | ' | 233,320,000 | 0 | 0 | 0 | 0 | 0 | 0 | 75,501,000 | 29,389,000 | 126,715,000 | 0 | 0 | 0 | 1,696,000 | 19,000 | ' | ' | 0 | ' | 0 | ' | ' | 500,000,000 | 500,000,000 | ' | 0 | 0 | ' | 0 | 0 | ||||||||||||||||||||||||
2017 | ' | ' | ' | ' | ' | ' | ' | 1,852,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,832,000 | 20,000 | ' | ' | 0 | ' | 0 | ' | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | ||||||||||||||||||||||||
Thereafter | ' | ' | ' | ' | ' | ' | ' | 109,242,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 108,469,000 | 773,000 | ' | ' | 14,000,000 | ' | 14,000,000 | ' | ' | 0 | 0 | ' | 600,000,000 | 600,000,000 | ' | 550,000,000 | 500,000,000 | ||||||||||||||||||||||||
Unamortized discount | -1,922,000 | -146,000 | -199,000 | -139,000 | -177,000 | -184,000 | -1,077,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Principal amount | 2,872,765,000 | 2,677,000 | 305,615,000 | 56,059,000 | 733,320,000 | 1,852,000 | 1,773,242,000 | 708,765,000 | 209,662,000 | 76,000,000 | 6,482,000 | 7,525,000 | 300,000 | 5,948,000 | 79,446,000 | 31,529,000 | 132,434,000 | 43,227,000 | 0 | 0 | 115,365,000 | 847,000 | ' | ' | 14,000,000 | ' | 14,000,000 | ' | ' | 500,000,000 | 500,000,000 | ' | 600,000,000 | 600,000,000 | ' | 550,000,000 | 500,000,000 | ||||||||||||||||||||||||
Total consolidated debt, Effective Interest | 3.91% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Balloon payments | 2,844,416,000 | 0 | 297,080,000 | 48,955,000 | 730,029,000 | 0 | 1,768,352,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
Principal amortization | $26,427,000 | $2,531,000 | $8,336,000 | $6,965,000 | $3,114,000 | $1,668,000 | $3,813,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||||||||||||||||
[1] | In addition to the stated rate, the line of credit is subject to an annual facility fee of 0.20%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Represents the weighted average contractual interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Includes any extension options that we control. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[4] | We are having discussions with the lender on an extension of the maturity date. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[5] | Secured construction loan with aggregate commitments of $55.0 million. We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[6] | Secured construction loan with aggregate commitments of $33.0 million. We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. As of September 30, 2013, we had not drawn on the loan. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[7] | Secured construction loan with aggregate commitments of $245.4 million. We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. As of September 30, 2013, we had not drawn on the loan. |
Secured_and_unsecured_senior_d5
Secured and unsecured senior debt Schedule of changes made to long-term debts (Details) (USD $) | Sep. 30, 2013 | Jul. 26, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Aug. 30, 2013 | Sep. 30, 2013 | Jul. 31, 2013 | Aug. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | Unsecured Bank Term Loan 2016 | Unsecured Bank Term Loan 2016 | Unsecured Bank Term Loan 2016 | Unsecured Bank Term Loan 2019 | Unsecured Bank Term Loan 2019 | Unsecured Bank Term Loan 2019 | Line of Credit | Line of Credit | Line of Credit | Line of Credit | Line of Credit | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Principal amount | $2,870,843 | ' | ' | $500,000 | ' | $600,000 | ' | ' | ' | $14,000 | ' | $14,000 | ||
Basis spread on LIBOR (as a percent) | ' | 1.75% | ' | 1.20% | ' | 1.20% | 1.50% | ' | ' | 1.10% | [1] | 1.20% | 1.10% | [1] |
Annual facility fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.20% | 0.20% | 0.20% | 0.25% | ' | ||
Base rate | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' | 'LIBOR | ' | ' | 'LIBOR | 'LIBOR | [1] | |
[1] | In addition to the stated rate, the line of credit is subject to an annual facility fee of 0.20%. |
Secured_and_unsecured_senior_d6
Secured and unsecured senior debt Interest Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest expense incurred | ' | ' | ' | ' |
Gross interest | $32,959 | $33,855 | $96,668 | $99,094 |
Capitalized interest | -16,788 | -16,763 | -46,499 | -47,854 |
Interest expense | $16,171 | $17,092 | $50,169 | $51,240 |
Interest_rate_swap_agreements_2
Interest rate swap agreements (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
The percentage of effectiveness of interest rate swap agreements | 100.00% | 100.00% | ' |
Interest rate swap hedge ineffectiveness recognized in earnings | $0 | $0 | ' |
Cash flow hedge loss to be reclassified within twelve month | 8,500,000 | ' | ' |
Cash flow hedge liability at fair value | 9,319,000 | ' | 20,700,000 |
Collateral obligation requirements | $0 | ' | ' |
Interest_rate_swap_agreements_3
Interest rate swap agreements Outstanding interest rate swap (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Interest rate hedge agreements | ' | ' | |
Fair Values | ($9,319) | ($20,700) | |
Notional Amount in Effect | 950,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 700,000 | ' | |
Unsecured Senior Line of Credit and Bank Term Loans | Minimum | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Applicable margin (as a percent) | 1.20% | ' | |
Transaction Date December 2006, Interest Pay Rate 4.990% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 4.99% | [1] | ' |
Fair Values | -1,205 | ' | |
Notional Amount in Effect | 50,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 50,000 | ' | |
Transaction Date October 2007, Interest Pay Rate 4.642% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 5.02% | [1] | ' |
Fair Values | -1,817 | ' | |
Notional Amount in Effect | 75,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 75,000 | ' | |
Transaction Date December 2006, Interest Pay Rate 5.015%. | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 5.02% | [1] | ' |
Fair Values | -1,820 | ' | |
Notional Amount in Effect | 75,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 75,000 | ' | |
Transaction Date December 2006, Interest Pay Rate 5.023% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 0.64% | [1] | ' |
Fair Values | -291 | ' | |
Notional Amount in Effect | 250,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 0 | ' | |
Transaction date December 2011, interest pay rate 0.640% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 0.64% | [1] | ' |
Fair Values | -291 | ' | |
Notional Amount in Effect | 250,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 0 | ' | |
Transaction date December 2011, interest pay rate 0.640% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 0.64% | [1] | ' |
Fair Values | -147 | ' | |
Notional Amount in Effect | 125,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 0 | ' | |
Transaction date December 2011, interest pay rate 0.644% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 0.64% | [1] | ' |
Fair Values | -147 | ' | |
Notional Amount in Effect | 125,000 | ' | |
Notional Amount in Effect at Fiscal Year End | 0 | ' | |
Transaction date December 2011, interest pay rate 0.644% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 0.98% | [1] | ' |
Fair Values | -1,802 | ' | |
Notional Amount in Effect | 0 | ' | |
Notional Amount in Effect at Fiscal Year End | 250,000 | ' | |
Transaction date December 2011, interest pay rate 0.977% | ' | ' | |
Interest rate hedge agreements | ' | ' | |
Interest Pay Rate (as a percent) | 0.98% | [1] | ' |
Fair Values | -1,799 | ' | |
Notional Amount in Effect | 0 | ' | |
Notional Amount in Effect at Fiscal Year End | $250,000 | ' | |
[1] | In addition to the interest pay rate, borrowings outstanding under our unsecured senior bank term loans include an applicable margin of 1.20% as of September 30, 2013. |
Fair_value_measurements_Assets
Fair value measurements Assets and Liabilities on Recurring Basis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Marketable securities | $3,256 | $2,709 |
Fair value measured on recurring basis | Fair Value | ' | ' |
Assets: | ' | ' |
Marketable securities | 3,256 | 2,709 |
Liabilities: | ' | ' |
Interest rate swap agreements | 9,319 | 20,661 |
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets and Liabilities | ' | ' |
Assets: | ' | ' |
Marketable securities | 3,256 | 2,709 |
Liabilities: | ' | ' |
Interest rate swap agreements | 0 | 0 |
Fair value measured on recurring basis | Significant Other Observable Inputs | ' | ' |
Assets: | ' | ' |
Marketable securities | 0 | 0 |
Liabilities: | ' | ' |
Interest rate swap agreements | 9,319 | 20,661 |
Fair value measured on recurring basis | Significant Unobservable Inputs | ' | ' |
Assets: | ' | ' |
Marketable securities | 0 | 0 |
Liabilities: | ' | ' |
Interest rate swap agreements | $0 | $0 |
Fair_value_measurements_Book_a
Fair value measurements Book and Fair Values (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of marketable securities, secured notes payable, unsecured senior line of credit, unsecured term loans, and unsecured senior convertible notes | ' | ' |
Marketable securities | $3,256 | $2,709 |
Book Value | ' | ' |
Summary of marketable securities, secured notes payable, unsecured senior line of credit, unsecured term loans, and unsecured senior convertible notes | ' | ' |
Marketable securities | 3,256 | 2,709 |
Interest rate swap agreements | 9,319 | 20,661 |
Secured notes payable | 708,653 | 716,144 |
Unsecured senior notes payable | 1,048,190 | 549,805 |
Unsecured senior line of credit | 14,000 | 566,000 |
Unsecured senior bank term loans | 1,100,000 | 1,350,000 |
Fair Value | ' | ' |
Summary of marketable securities, secured notes payable, unsecured senior line of credit, unsecured term loans, and unsecured senior convertible notes | ' | ' |
Marketable securities | 3,256 | 2,709 |
Interest rate swap agreements | 9,319 | 20,661 |
Secured notes payable | 761,047 | 788,455 |
Unsecured senior notes payable | 1,028,750 | 593,350 |
Unsecured senior line of credit | 13,738 | 567,196 |
Unsecured senior bank term loans | $1,088,322 | $1,405,124 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings per share | ' | ' | ' | ' | ||||
Income from continuing operations | $32,517 | $22,501 | $94,262 | $69,695 | ||||
Gain on sale of land parcel | 0 | 0 | 772 | 1,864 | ||||
Net income attributable to noncontrolling interests | -960 | -828 | -2,922 | -2,390 | ||||
Dividends on preferred stock | -6,472 | -6,471 | -19,414 | -20,857 | ||||
Preferred stock redemption charge | 0 | 0 | 0 | -5,978 | ||||
Net income attributable to unvested restricted stock awards | -442 | -360 | -1,187 | -866 | ||||
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted | 24,643 | 14,842 | 71,511 | 41,468 | ||||
(Loss) income from discontinued operations, net | -64 | [1] | -4,196 | [1] | 993 | [1] | 5,162 | [1] |
Net income attributable to Alexandria’s common stockholders | $24,579 | $10,646 | $72,504 | $46,630 | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 70,900 | 62,364 | 67,040 | 61,847 | ||||
Earnings per share attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted: | ' | ' | ' | ' | ||||
Continuing operations | $0.35 | $0.24 | $1.07 | $0.67 | ||||
Discontinued operations, net | $0 | ($0.07) | $0.01 | $0.08 | ||||
Earnings per share – basic and diluted | $0.35 | $0.17 | $1.08 | $0.75 | ||||
8.00% Unsecured Senior Convertible Notes | ' | ' | ' | ' | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ||||
Stated interest rate (as a percent) | 8.00% | ' | 8.00% | ' | ||||
[1] | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale†as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Net_income_attributable_to_Ale2
Net income attributable to Alexandria Real Estate Equities, Inc. (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net income attributable to Alexandria Real Estate Equities, Inc.: | ' | ' | ' | ' | ||||
Income from continuing operations | $32,517 | $22,501 | $94,262 | $69,695 | ||||
Gain on sale of land parcel | 0 | 0 | 772 | 1,864 | ||||
Less: net income attributable to noncontrolling interests | -960 | -828 | -2,922 | -2,390 | ||||
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc. | 31,557 | 21,673 | 92,112 | 69,169 | ||||
(Loss) income from discontinued operations, net | -64 | [1] | -4,196 | [1] | 993 | [1] | 5,162 | [1] |
Less: net income (loss) from discontinued operations attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Net income attributable to Alexandria Real Estate Equities, Inc. | $31,493 | $17,477 | $93,105 | $74,331 | ||||
[1] | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale†as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Stockholders_equity_Details
Stockholders' equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | 31-May-13 | 15-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Series E Preferred Stock | Common Stock | Common Stock | Common Stock | Common Stock | 7.00% series D Convertible Preferred Stock | ||||
At-the-market equity offering programs | At-the-market equity offering programs | ||||||||
Issuances of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued in secondary offering (in shares) | ' | ' | ' | ' | 7,600,000 | ' | ' | ' | ' |
Stock issued pursuant to the exercise of underwriters' option (in shares) | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' |
Shares issued price (dollars per share) | ' | ' | ' | ' | ' | $73.50 | ' | ' | ' |
Aggregate net proceeds from issuance of common stock | ' | $535,686,000 | $98,443,000 | ' | ' | ' | ' | ' | ' |
Aggregate value of the shares of common stock to be sold | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' |
Aggregate value of shares available for issuance | ' | ' | ' | ' | ' | ' | 150,000,000 | ' | ' |
Cash dividend on common stock declared | 48,700,000 | 133,388,000 | ' | ' | ' | ' | ' | ' | ' |
Cash dividend on common stock declared (in dollars per share) | $0.68 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend on preferred stock declared | ' | $19,414,000 | ' | $2,100,000 | ' | ' | ' | ' | $4,400,000 |
Cash dividend on preferred stock declared (in dollars per share) | ' | ' | ' | $0.40 | ' | ' | ' | ' | $0.44 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' |
Number of shares issued and outstanding | 15,200,000 | 15,200,000 | ' | ' | ' | ' | ' | ' | ' |
Number of "excess stock" authorized (in shares) | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' |
Number of excess stock authorized issued and outstanding (in shares) | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Stockholders_equity_Schedule_o
Stockholders' equity Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Change in accumulated other comprehensive loss | ' |
Balance at the beginning of the period | ($24,833) |
Other comprehensive income (loss) before reclassifications | -26,759 |
Amounts reclassified from other comprehensive income | 11,566 |
Net other comprehensive (loss) income | -15,193 |
Balance at the end of the period | -40,026 |
Unrealized Gain on Marketable Securities | ' |
Change in accumulated other comprehensive loss | ' |
Balance at the beginning of the period | 1,473 |
Other comprehensive income (loss) before reclassifications | 323 |
Amounts reclassified from other comprehensive income | -480 |
Net other comprehensive (loss) income | -157 |
Balance at the end of the period | 1,316 |
Unrealized Loss on Interest Rate Swap Agreements | ' |
Change in accumulated other comprehensive loss | ' |
Balance at the beginning of the period | -20,661 |
Other comprehensive income (loss) before reclassifications | -704 |
Amounts reclassified from other comprehensive income | 12,046 |
Net other comprehensive (loss) income | 11,342 |
Balance at the end of the period | -9,319 |
Unrealized Loss on Foreign Currency Translation | ' |
Change in accumulated other comprehensive loss | ' |
Balance at the beginning of the period | -5,645 |
Other comprehensive income (loss) before reclassifications | -26,378 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive (loss) income | -26,378 |
Balance at the end of the period | ($32,023) |
Noncontrolling_interests_Detai
Noncontrolling interests (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Noncontrolling interests | ' | ' |
Redeemable noncontrolling interest balances | $14,475 | $14,564 |
Remaining noncontrolling interests | 47,471 | 46,643 |
Noncontrolling Interests | ' | ' |
Noncontrolling interests | ' | ' |
Number of properties owned | 10 | ' |
Number of development parcels owned | 3 | ' |
Redeemable noncontrolling interest balances | 14,500 | 14,600 |
Remaining noncontrolling interests | $47,471 | $46,643 |
Discontinued_operations_Detail
Discontinued operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
property | |||||||||
Net assets of discontinued operations | ' | ' | ' | ' | ' | ||||
Properties "held for sale, "net | $4,510 | ' | $4,510 | ' | $76,440 | ||||
Other assets | 14 | ' | 14 | ' | 4,546 | ||||
Total assets | 4,524 | ' | 4,524 | ' | 80,986 | ||||
Total liabilities | -32 | ' | -32 | ' | -3,233 | ||||
Net assets of discontinued operations | 4,492 | ' | 4,492 | ' | 77,753 | ||||
Income from discontinued operations, net | ' | ' | ' | ' | ' | ||||
Total revenues | 4 | 8,418 | 3,741 | 26,556 | ' | ||||
Operating expenses | 68 | 2,788 | 1,697 | 8,337 | ' | ||||
Total revenues less operating expenses from discontinued operations | -64 | 5,630 | 2,044 | 18,219 | ' | ||||
Depreciation expense | 0 | 1,589 | 930 | 4,822 | ' | ||||
Loss (gain) on sale of real estate | 0 | -1,562 | 121 | -1,564 | ' | ||||
Impairment of real estate | 0 | 9,799 | 0 | 9,799 | ' | ||||
(Loss) income from discontinued operations, net | ($64) | [1] | ($4,196) | [1] | $993 | [1] | $5,162 | [1] | ' |
Number of operating properties classified as held for sale | 2 | ' | ' | ' | ' | ||||
Number of properties sold | 10 | ' | ' | ' | ' | ||||
[1] | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale†as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Subsequent_events_Details
Subsequent events (Details) (Subsequent Event, Biopharmaceutical Company, 499 Illinois Street) | 1 Months Ended |
Oct. 31, 2013 | |
sqft | |
Subsequent Event | Biopharmaceutical Company | 499 Illinois Street | ' |
Subsequent Event [Line Items] | ' |
Real estate property leasing term | '10 years |
Increase (decrease) in area of leased property | 43,625 |
Real estate leasing percentage | 77.00% |
Condensed_consolidating_financ2
Condensed consolidating financial information Balance Sheet (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Investments in real estate, net | $6,613,761 | $6,424,578 | ' | ' |
Cash and cash equivalents | 53,839 | 140,971 | 94,904 | 78,539 |
Restricted cash | 30,654 | 39,947 | ' | ' |
Tenant receivables | 8,671 | 8,449 | ' | ' |
Deferred rent | 182,909 | 170,396 | ' | ' |
Deferred leasing and financing costs, net | 179,805 | 160,048 | ' | ' |
Investments | 129,163 | 115,048 | ' | ' |
Investments in and advances to affiliates | 0 | 0 | ' | ' |
Intercompany note receivable | ' | 0 | ' | ' |
Other assets | 159,567 | 90,679 | ' | ' |
Total assets | 7,358,369 | 7,150,116 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 708,653 | 716,144 | ' | ' |
Unsecured senior notes payable | 1,048,190 | 549,805 | ' | ' |
Unsecured senior line of credit | 14,000 | 566,000 | ' | ' |
Unsecured senior bank term loans | 1,100,000 | 1,350,000 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 452,139 | 423,708 | ' | ' |
Dividends payable | 54,413 | 41,401 | ' | ' |
Intercompany notes payable | ' | 0 | ' | ' |
Total liabilities | 3,377,395 | 3,647,058 | ' | ' |
Redeemable noncontrolling interests | 14,475 | 14,564 | ' | ' |
Stockholders' Equity Attributable to Parent | 3,919,028 | 3,441,851 | ' | ' |
Noncontrolling interests | 47,471 | 46,643 | ' | ' |
Total equity | 3,966,499 | 3,488,494 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 7,358,369 | 7,150,116 | ' | ' |
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 0 | 38,616 | ' | ' |
Cash and cash equivalents | 14,667 | 98,567 | 50,395 | 10,608 |
Restricted cash | 61 | 52 | ' | ' |
Tenant receivables | 0 | 1 | ' | ' |
Deferred rent | 0 | 1,876 | ' | ' |
Deferred leasing and financing costs, net | 38,462 | 31,373 | ' | ' |
Investments | 0 | 0 | ' | ' |
Investments in and advances to affiliates | 6,119,819 | 5,833,368 | ' | ' |
Intercompany note receivable | ' | 3,021 | ' | ' |
Other assets | 17,801 | 17,613 | ' | ' |
Total assets | 6,190,810 | 6,024,487 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 0 | 0 | ' | ' |
Unsecured senior notes payable | 1,048,190 | 549,805 | ' | ' |
Unsecured senior line of credit | 14,000 | 566,000 | ' | ' |
Unsecured senior bank term loans | 1,100,000 | 1,350,000 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 55,467 | 75,728 | ' | ' |
Dividends payable | 54,125 | 41,103 | ' | ' |
Intercompany notes payable | ' | 0 | ' | ' |
Total liabilities | 2,271,782 | 2,582,636 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | 3,919,028 | 3,441,851 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 3,919,028 | 3,441,851 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 6,190,810 | 6,024,487 | ' | ' |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 0 | 0 | ' | ' |
Cash and cash equivalents | 0 | 1,913 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Tenant receivables | 0 | 0 | ' | ' |
Deferred rent | 0 | 0 | ' | ' |
Deferred leasing and financing costs, net | 0 | 0 | ' | ' |
Investments | 11,828 | 12,591 | ' | ' |
Investments in and advances to affiliates | 5,655,063 | 5,358,883 | ' | ' |
Intercompany note receivable | ' | 0 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | 5,666,891 | 5,373,387 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 0 | 0 | ' | ' |
Unsecured senior notes payable | 0 | 0 | ' | ' |
Unsecured senior line of credit | 0 | 0 | ' | ' |
Unsecured senior bank term loans | 0 | 0 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 0 | 0 | ' | ' |
Dividends payable | 0 | 0 | ' | ' |
Intercompany notes payable | ' | 0 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | 5,666,891 | 5,373,387 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 5,666,891 | 5,373,387 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 5,666,891 | 5,373,387 | ' | ' |
Combined Non- Guarantor Subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 6,613,761 | 6,385,962 | ' | ' |
Cash and cash equivalents | 39,172 | 40,491 | 44,509 | 67,931 |
Restricted cash | 30,593 | 39,895 | ' | ' |
Tenant receivables | 8,671 | 8,448 | ' | ' |
Deferred rent | 182,909 | 168,520 | ' | ' |
Deferred leasing and financing costs, net | 141,343 | 128,675 | ' | ' |
Investments | 117,335 | 102,457 | ' | ' |
Investments in and advances to affiliates | 116,004 | 110,100 | ' | ' |
Intercompany note receivable | ' | 0 | ' | ' |
Other assets | 141,766 | 73,066 | ' | ' |
Total assets | 7,391,554 | 7,057,614 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 708,653 | 716,144 | ' | ' |
Unsecured senior notes payable | 0 | 0 | ' | ' |
Unsecured senior line of credit | 0 | 0 | ' | ' |
Unsecured senior bank term loans | 0 | 0 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 396,672 | 347,980 | ' | ' |
Dividends payable | 288 | 298 | ' | ' |
Intercompany notes payable | ' | 3,021 | ' | ' |
Total liabilities | 1,105,613 | 1,067,443 | ' | ' |
Redeemable noncontrolling interests | 14,475 | 14,564 | ' | ' |
Stockholders' Equity Attributable to Parent | 6,223,995 | 5,928,964 | ' | ' |
Noncontrolling interests | 47,471 | 46,643 | ' | ' |
Total equity | 6,271,466 | 5,975,607 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 7,391,554 | 7,057,614 | ' | ' |
Eliminations | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 0 | 0 | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ' | ' |
Tenant receivables | 0 | 0 | ' | ' |
Deferred rent | 0 | 0 | ' | ' |
Deferred leasing and financing costs, net | 0 | 0 | ' | ' |
Investments | 0 | 0 | ' | ' |
Investments in and advances to affiliates | -11,890,886 | -11,302,351 | ' | ' |
Intercompany note receivable | ' | -3,021 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -11,890,886 | -11,305,372 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 0 | 0 | ' | ' |
Unsecured senior notes payable | 0 | 0 | ' | ' |
Unsecured senior line of credit | 0 | 0 | ' | ' |
Unsecured senior bank term loans | 0 | 0 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 0 | 0 | ' | ' |
Dividends payable | 0 | 0 | ' | ' |
Intercompany notes payable | ' | -3,021 | ' | ' |
Total liabilities | 0 | -3,021 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholders' Equity Attributable to Parent | -11,890,886 | -11,302,351 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | -11,890,886 | -11,302,351 | ' | ' |
Total liabilities, noncontrolling interests, and equity | ($11,890,886) | ($11,305,372) | ' | ' |
Condensed_consolidating_financ3
Condensed consolidating financial information Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues: | ' | ' | ' | ' | ||||
Rental | $116,302 | $106,216 | $342,821 | $311,746 | ||||
Tenant recoveries | 38,757 | 34,006 | 110,291 | 97,769 | ||||
Other income (loss) | 3,571 | 2,628 | 10,133 | 14,639 | ||||
Total revenues | 158,630 | 142,850 | 463,245 | 424,154 | ||||
Expenses: | ' | ' | ' | ' | ||||
Rental operations | 47,742 | 44,203 | 139,289 | 126,758 | ||||
General and administrative | 11,666 | 12,470 | 35,786 | 35,125 | ||||
Interest | 16,171 | 17,092 | 50,169 | 51,240 | ||||
Depreciation and amortization | 49,102 | 46,584 | 141,747 | 139,111 | ||||
Loss on early extinguishment of debt | 1,432 | 0 | 1,992 | 2,225 | ||||
Total expenses | 126,113 | 120,349 | 368,983 | 354,459 | ||||
(Loss) income from continuing operations before equity in earnings of affiliates | 32,517 | 22,501 | 94,262 | 69,695 | ||||
Equity in (income) loss related to subsidiaries | 0 | 0 | 0 | 0 | ||||
Income from continuing operations | 32,517 | 22,501 | 94,262 | 69,695 | ||||
(Loss) income from discontinued operations, net | -64 | [1] | -4,196 | [1] | 993 | [1] | 5,162 | [1] |
Gain on sale of land parcel | 0 | 0 | 772 | 1,864 | ||||
Net income | 32,453 | 18,305 | 96,027 | 76,721 | ||||
Net income attributable to noncontrolling interests | 960 | 828 | 2,922 | 2,390 | ||||
Dividends on preferred stock | 6,472 | 6,471 | 19,414 | 20,857 | ||||
Preferred stock redemption charge | 0 | 0 | 0 | 5,978 | ||||
Net income attributable to unvested restricted stock awards | 442 | 360 | 1,187 | 866 | ||||
Net income attributable to Alexandria’s common stockholders | 24,579 | 10,646 | 72,504 | 46,630 | ||||
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' | ' | ' | ||||
Revenues: | ' | ' | ' | ' | ||||
Rental | 0 | 0 | 0 | 0 | ||||
Tenant recoveries | 0 | 0 | 0 | 0 | ||||
Other income (loss) | 2,802 | 2,785 | 8,071 | 7,593 | ||||
Total revenues | 2,802 | 2,785 | 8,071 | 7,593 | ||||
Expenses: | ' | ' | ' | ' | ||||
Rental operations | 0 | 0 | 0 | 0 | ||||
General and administrative | 10,141 | 9,587 | 32,574 | 32,030 | ||||
Interest | 10,238 | 11,785 | 32,048 | 34,460 | ||||
Depreciation and amortization | 1,472 | 1,725 | 4,393 | 3,781 | ||||
Loss on early extinguishment of debt | 1,432 | ' | 1,992 | 2,225 | ||||
Total expenses | 23,283 | 23,097 | 71,007 | 72,496 | ||||
(Loss) income from continuing operations before equity in earnings of affiliates | -20,481 | -20,312 | -62,936 | -64,903 | ||||
Equity in (income) loss related to subsidiaries | 51,975 | 41,380 | 155,694 | 140,267 | ||||
Income from continuing operations | 31,494 | 21,068 | 92,758 | 75,364 | ||||
(Loss) income from discontinued operations, net | -1 | -3,591 | 347 | -1,033 | ||||
Gain on sale of land parcel | ' | ' | 0 | 0 | ||||
Net income | 31,493 | 17,477 | 93,105 | 74,331 | ||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Dividends on preferred stock | 6,472 | 6,471 | 19,414 | 20,857 | ||||
Preferred stock redemption charge | ' | ' | ' | 5,978 | ||||
Net income attributable to unvested restricted stock awards | 442 | 360 | 1,187 | 866 | ||||
Net income attributable to Alexandria’s common stockholders | 24,579 | 10,646 | 72,504 | 46,630 | ||||
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' | ' | ' | ||||
Revenues: | ' | ' | ' | ' | ||||
Rental | 0 | 0 | 0 | 0 | ||||
Tenant recoveries | 0 | 0 | 0 | 0 | ||||
Other income (loss) | -1 | 51 | -142 | 891 | ||||
Total revenues | -1 | 51 | -142 | 891 | ||||
Expenses: | ' | ' | ' | ' | ||||
Rental operations | 0 | 0 | 0 | 0 | ||||
General and administrative | 0 | 0 | 0 | 1 | ||||
Interest | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Loss on early extinguishment of debt | 0 | ' | 0 | 0 | ||||
Total expenses | 0 | 0 | 0 | 1 | ||||
(Loss) income from continuing operations before equity in earnings of affiliates | -1 | 51 | -142 | 890 | ||||
Equity in (income) loss related to subsidiaries | 48,477 | 42,064 | 144,660 | 134,346 | ||||
Income from continuing operations | 48,476 | 42,115 | 144,518 | 135,236 | ||||
(Loss) income from discontinued operations, net | 0 | 0 | 0 | 0 | ||||
Gain on sale of land parcel | ' | ' | 0 | 0 | ||||
Net income | 48,476 | 42,115 | 144,518 | 135,236 | ||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Preferred stock redemption charge | ' | ' | ' | 0 | ||||
Net income attributable to unvested restricted stock awards | 0 | 0 | 0 | 0 | ||||
Net income attributable to Alexandria’s common stockholders | 48,476 | 42,115 | 144,518 | 135,236 | ||||
Combined Non- Guarantor Subsidiaries | ' | ' | ' | ' | ||||
Revenues: | ' | ' | ' | ' | ||||
Rental | 116,302 | 106,216 | 342,821 | 311,746 | ||||
Tenant recoveries | 38,757 | 34,006 | 110,291 | 97,769 | ||||
Other income (loss) | 3,965 | 3,209 | 11,636 | 16,095 | ||||
Total revenues | 159,024 | 143,431 | 464,748 | 425,610 | ||||
Expenses: | ' | ' | ' | ' | ||||
Rental operations | 47,742 | 44,203 | 139,289 | 126,758 | ||||
General and administrative | 4,720 | 6,300 | 12,644 | 13,034 | ||||
Interest | 5,933 | 5,307 | 18,121 | 16,780 | ||||
Depreciation and amortization | 47,630 | 44,859 | 137,354 | 135,330 | ||||
Loss on early extinguishment of debt | 0 | ' | 0 | 0 | ||||
Total expenses | 106,025 | 100,669 | 307,408 | 291,902 | ||||
(Loss) income from continuing operations before equity in earnings of affiliates | 52,999 | 42,762 | 157,340 | 133,708 | ||||
Equity in (income) loss related to subsidiaries | 959 | 804 | 2,858 | 2,662 | ||||
Income from continuing operations | 53,958 | 43,566 | 160,198 | 136,370 | ||||
(Loss) income from discontinued operations, net | -63 | -605 | 646 | 6,195 | ||||
Gain on sale of land parcel | ' | ' | 772 | 1,864 | ||||
Net income | 53,895 | 42,961 | 161,616 | 144,429 | ||||
Net income attributable to noncontrolling interests | 960 | 828 | 2,922 | 2,390 | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Preferred stock redemption charge | ' | ' | ' | 0 | ||||
Net income attributable to unvested restricted stock awards | 0 | 0 | 0 | 0 | ||||
Net income attributable to Alexandria’s common stockholders | 52,935 | 42,133 | 158,694 | 142,039 | ||||
Eliminations | ' | ' | ' | ' | ||||
Revenues: | ' | ' | ' | ' | ||||
Rental | 0 | 0 | 0 | 0 | ||||
Tenant recoveries | 0 | 0 | 0 | 0 | ||||
Other income (loss) | -3,195 | -3,417 | -9,432 | -9,940 | ||||
Total revenues | -3,195 | -3,417 | -9,432 | -9,940 | ||||
Expenses: | ' | ' | ' | ' | ||||
Rental operations | 0 | 0 | 0 | 0 | ||||
General and administrative | -3,195 | -3,417 | -9,432 | -9,940 | ||||
Interest | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Loss on early extinguishment of debt | 0 | ' | 0 | 0 | ||||
Total expenses | -3,195 | -3,417 | -9,432 | -9,940 | ||||
(Loss) income from continuing operations before equity in earnings of affiliates | 0 | 0 | 0 | 0 | ||||
Equity in (income) loss related to subsidiaries | -101,411 | -84,248 | -303,212 | -277,275 | ||||
Income from continuing operations | -101,411 | -84,248 | -303,212 | -277,275 | ||||
(Loss) income from discontinued operations, net | 0 | 0 | 0 | 0 | ||||
Gain on sale of land parcel | ' | ' | 0 | 0 | ||||
Net income | -101,411 | -84,248 | -303,212 | -277,275 | ||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Preferred stock redemption charge | ' | ' | ' | 0 | ||||
Net income attributable to unvested restricted stock awards | 0 | 0 | 0 | 0 | ||||
Net income attributable to Alexandria’s common stockholders | ($101,411) | ($84,248) | ($303,212) | ($277,275) | ||||
[1] | (Loss) income from discontinued operations, net, includes the results of operations for two operating properties that were classified as “held for sale†as of September 30, 2013, as well as the results of operations (prior to disposition) and (gain) loss on sale of real estate attributable to 10 properties sold during the period from January 1, 2012, to September 30, 2013. |
Condensed_consolidating_financ4
Condensed consolidating financial information Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net income | $32,453 | $18,305 | $96,027 | $76,721 |
Unrealized gains on marketable securities: | ' | ' | ' | ' |
Unrealized gains (losses) on marketable securities: | -37 | 796 | 323 | 1,363 |
Reclassification adjustment for (gains) losses included in net income | -250 | -1,421 | -480 | -2,107 |
Unrealized gains (losses) on marketable securities, net | -287 | -625 | -157 | -744 |
Unrealized gains (losses) on interest rate swaps: | ' | ' | ' | ' |
Unrealized interest rate swap gains (losses) arising during the period | -676 | -2,818 | -704 | -9,982 |
Reclassification adjustment for amortization of interest expense included in net income | 3,904 | 5,956 | 12,046 | 17,626 |
Unrealized gains (losses) on interest rate swaps, net | 3,228 | 3,138 | 11,342 | 7,644 |
Foreign currency translation losses | -3,404 | 15,104 | -26,461 | 7,871 |
Total other comprehensive (loss) income | -463 | 17,617 | -15,276 | 14,771 |
Comprehensive income | 31,990 | 35,922 | 80,751 | 91,492 |
Less: comprehensive income attributable to noncontrolling interests | -933 | -805 | -2,839 | -2,379 |
Comprehensive income attributable to Alexandria’s common stockholders | 31,057 | 35,117 | 77,912 | 89,113 |
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' | ' | ' |
Net income | 31,493 | 17,477 | 93,105 | 74,331 |
Unrealized gains on marketable securities: | ' | ' | ' | ' |
Unrealized gains (losses) on marketable securities: | 0 | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on marketable securities, net | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate swaps: | ' | ' | ' | ' |
Unrealized interest rate swap gains (losses) arising during the period | -676 | -2,818 | -704 | -9,982 |
Reclassification adjustment for amortization of interest expense included in net income | 3,904 | 5,956 | 12,046 | 17,626 |
Unrealized gains (losses) on interest rate swaps, net | 3,228 | 3,138 | 11,342 | 7,644 |
Foreign currency translation losses | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 3,228 | 3,138 | 11,342 | 7,644 |
Comprehensive income | 34,721 | 20,615 | 104,447 | 81,975 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | 34,721 | 20,615 | 104,447 | 81,975 |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' | ' | ' |
Net income | 48,476 | 42,115 | 144,518 | 135,236 |
Unrealized gains on marketable securities: | ' | ' | ' | ' |
Unrealized gains (losses) on marketable securities: | -796 | 23 | -391 | 10 |
Reclassification adjustment for (gains) losses included in net income | 519 | -11 | 144 | 172 |
Unrealized gains (losses) on marketable securities, net | -277 | 12 | -247 | 182 |
Unrealized gains (losses) on interest rate swaps: | ' | ' | ' | ' |
Unrealized interest rate swap gains (losses) arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate swaps, net | 0 | 0 | 0 | 0 |
Foreign currency translation losses | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | -277 | 12 | -247 | 182 |
Comprehensive income | 48,199 | 42,127 | 144,271 | 135,418 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | 48,199 | 42,127 | 144,271 | 135,418 |
Combined Non- Guarantor Subsidiaries | ' | ' | ' | ' |
Net income | 53,895 | 42,961 | 161,616 | 144,429 |
Unrealized gains on marketable securities: | ' | ' | ' | ' |
Unrealized gains (losses) on marketable securities: | 759 | 773 | 714 | 1,353 |
Reclassification adjustment for (gains) losses included in net income | -769 | -1,410 | -624 | -2,279 |
Unrealized gains (losses) on marketable securities, net | -10 | -637 | 90 | -926 |
Unrealized gains (losses) on interest rate swaps: | ' | ' | ' | ' |
Unrealized interest rate swap gains (losses) arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate swaps, net | 0 | 0 | 0 | 0 |
Foreign currency translation losses | -3,404 | 15,104 | -26,461 | 7,871 |
Total other comprehensive (loss) income | -3,414 | 14,467 | -26,371 | 6,945 |
Comprehensive income | 50,481 | 57,428 | 135,245 | 151,374 |
Less: comprehensive income attributable to noncontrolling interests | -933 | -805 | -2,839 | -2,379 |
Comprehensive income attributable to Alexandria’s common stockholders | 49,548 | 56,623 | 132,406 | 148,995 |
Eliminations | ' | ' | ' | ' |
Net income | -101,411 | -84,248 | -303,212 | -277,275 |
Unrealized gains on marketable securities: | ' | ' | ' | ' |
Unrealized gains (losses) on marketable securities: | 0 | 0 | 0 | 0 |
Reclassification adjustment for (gains) losses included in net income | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on marketable securities, net | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate swaps: | ' | ' | ' | ' |
Unrealized interest rate swap gains (losses) arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate swaps, net | 0 | 0 | 0 | 0 |
Foreign currency translation losses | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Comprehensive income | -101,411 | -84,248 | -303,212 | -277,275 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | ($101,411) | ($84,248) | ($303,212) | ($277,275) |
Condensed_consolidating_financ5
Condensed consolidating financial information Cash Flows (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 |
Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, Inc. (Issuer) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | Combined Non- Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Eliminations | Eliminations | Eliminations | Unsecured Bank Term Loan 2016 | |||||
Operating Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $32,453 | $18,305 | $96,027 | $76,721 | $31,493 | $17,477 | $93,105 | $74,331 | $48,476 | $42,115 | $144,518 | $135,236 | $53,895 | $42,961 | $161,616 | $144,429 | ($101,411) | ($84,248) | ($303,212) | ($277,275) | ' |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | 142,677 | 143,933 | ' | ' | 4,393 | 3,781 | ' | ' | 0 | 0 | ' | ' | 138,284 | 140,152 | ' | ' | 0 | 0 | ' |
Loss on early extinguishment of debt | 1,432 | 0 | 1,992 | 2,225 | 1,432 | ' | 1,992 | 2,225 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | 1,400 |
Gain on sale of land parcel | 0 | 0 | -772 | -1,864 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -772 | -1,864 | ' | ' | 0 | 0 | ' |
Loss (gain) on sale of real estate | 0 | -1,562 | 121 | -1,564 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 121 | -1,564 | ' | ' | 0 | 0 | ' |
Non-cash impairment of real estate | ' | ' | 0 | 9,799 | ' | ' | ' | 4,799 | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' |
Amortization of loan fees and costs | ' | ' | 7,300 | 7,327 | ' | ' | 5,148 | 5,307 | ' | ' | 0 | 0 | ' | ' | 2,152 | 2,020 | ' | ' | 0 | 0 | ' |
Amortization of debt premiums/discounts | ' | ' | 383 | 401 | ' | ' | 75 | 104 | ' | ' | 0 | 0 | ' | ' | 308 | 297 | ' | ' | 0 | 0 | ' |
Amortization of acquired above and below market leases | ' | ' | -2,490 | -2,356 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -2,490 | -2,356 | ' | ' | 0 | 0 | ' |
Deferred rent | ' | ' | -20,007 | -19,216 | ' | ' | 0 | 164 | ' | ' | 0 | 0 | ' | ' | -20,007 | -19,380 | ' | ' | 0 | 0 | ' |
Stock compensation expense | ' | ' | 11,541 | 10,412 | ' | ' | 11,541 | 10,412 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Equity in loss related to investments | ' | ' | 0 | -26 | ' | ' | ' | 0 | ' | ' | ' | -26 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' |
Equity in (income) loss related to subsidiaries | 0 | 0 | 0 | 0 | 51,975 | 41,380 | 155,694 | 140,267 | 48,477 | 42,064 | 144,660 | 134,346 | 959 | 804 | 2,858 | 2,662 | -101,411 | -84,248 | -303,212 | -277,275 | ' |
Gain on sales of investments | ' | ' | -4,716 | -12,316 | ' | ' | 0 | 0 | ' | ' | -152 | -1,109 | ' | ' | -4,564 | -11,207 | ' | ' | 0 | 0 | ' |
Loss on sales of investments | ' | ' | 529 | 1,607 | ' | ' | 0 | 0 | ' | ' | 298 | 195 | ' | ' | 231 | 1,412 | ' | ' | 0 | 0 | ' |
Changes in operating assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted cash | ' | ' | 1,243 | 441 | ' | ' | -8 | -8 | ' | ' | 0 | 0 | ' | ' | 1,251 | 449 | ' | ' | 0 | 0 | ' |
Tenant receivables | ' | ' | -271 | -2,637 | ' | ' | 1 | 11 | ' | ' | 0 | 0 | ' | ' | -272 | -2,648 | ' | ' | 0 | 0 | ' |
Deferred leasing costs | ' | ' | -37,190 | -23,597 | ' | ' | 2,421 | 4,232 | ' | ' | 0 | 0 | ' | ' | -39,611 | -27,829 | ' | ' | 0 | 0 | ' |
Other assets | ' | ' | -11,428 | -3,230 | ' | ' | -5,570 | 2,603 | ' | ' | 0 | 0 | ' | ' | -5,858 | -5,833 | ' | ' | 0 | 0 | ' |
Intercompany receivables and payables | ' | ' | 0 | 0 | ' | ' | 3,021 | -49 | ' | ' | 0 | 0 | ' | ' | -3,021 | 49 | ' | ' | 0 | 0 | ' |
Accounts payable, accrued expenses, and tenant security deposits | ' | ' | 51,437 | 41,378 | ' | ' | -9,599 | 3,592 | ' | ' | 0 | 0 | ' | ' | 61,036 | 37,786 | ' | ' | 0 | 0 | ' |
Net cash provided by operating activities | ' | ' | 236,376 | 227,490 | ' | ' | -49,174 | -28,763 | ' | ' | 4 | 2 | ' | ' | 285,546 | 256,251 | ' | ' | 0 | 0 | ' |
Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of properties | ' | ' | 101,815 | 36,179 | ' | ' | 10,796 | 0 | ' | ' | 0 | 0 | ' | ' | 91,019 | 36,179 | ' | ' | 0 | 0 | ' |
Additions to properties | ' | ' | -450,140 | -406,066 | ' | ' | 3,539 | -1,192 | ' | ' | 0 | 0 | ' | ' | -453,679 | -404,874 | ' | ' | 0 | 0 | ' |
Purchase of properties | ' | ' | -24,537 | -42,171 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -24,537 | -42,171 | ' | ' | 0 | 0 | ' |
Change in restricted cash related to construction projects | ' | ' | 5,711 | -11,453 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 5,711 | -11,453 | ' | ' | 0 | 0 | ' |
Distribution from unconsolidated real estate entity | ' | ' | 0 | 22,250 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 22,250 | ' | ' | ' | 0 | ' |
Contributions to unconsolidated real estate entity | ' | ' | -13,881 | -5,042 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -13,881 | -5,042 | ' | ' | 0 | 0 | ' |
Investments in subsidiaries | ' | ' | 0 | 0 | ' | ' | -126,967 | -147,782 | ' | ' | -170,033 | -112,504 | ' | ' | -3,045 | -389 | ' | ' | 300,045 | 260,675 | ' |
Additions to investments | ' | ' | -22,835 | -21,997 | ' | ' | 0 | 0 | ' | ' | 0 | -160 | ' | ' | -22,835 | -21,837 | ' | ' | 0 | 0 | ' |
Proceeds from investments | ' | ' | 12,750 | 19,905 | ' | ' | 0 | 0 | ' | ' | 1,594 | 1,944 | ' | ' | 11,156 | 17,961 | ' | ' | 0 | 0 | ' |
Net cash used in investing activities | ' | ' | -391,117 | -408,395 | ' | ' | -112,632 | -148,974 | ' | ' | -168,439 | -110,720 | ' | ' | -410,091 | -409,376 | ' | ' | 300,045 | 260,675 | ' |
Financing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings from secured notes payable | ' | ' | 26,319 | 2,874 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 26,319 | 2,874 | ' | ' | 0 | 0 | ' |
Repayments of borrowings from secured notes payable | ' | ' | -34,120 | -8,125 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -34,120 | -8,125 | ' | ' | 0 | 0 | ' |
Proceeds from issuance of unsecured senior notes payable | ' | ' | 498,561 | 549,533 | ' | ' | 498,561 | 549,533 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Principal borrowings from unsecured senior line of credit | ' | ' | 319,000 | 623,147 | ' | ' | 319,000 | 623,147 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Repayments of borrowings from unsecured senior line of credit | ' | ' | -871,000 | -580,147 | ' | ' | -871,000 | -580,147 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Repayment of unsecured senior bank term loan | ' | ' | -250,000 | -250,000 | ' | ' | -250,000 | -250,000 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | -100,000 |
Repurchase of unsecured senior convertible notes | ' | ' | -384 | -84,801 | ' | ' | -384 | -84,801 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Redemption of Series C Cumulative Redeemable Preferred Stock | ' | ' | 0 | -129,638 | ' | ' | ' | -129,638 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' |
Proceeds from issuance of Series E Cumulative Redeemable Preferred Stock | ' | ' | 0 | 124,868 | ' | ' | ' | 124,868 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' |
Transfers due to/from parent company | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 166,522 | 110,718 | ' | ' | 133,523 | 149,957 | ' | ' | -300,045 | -260,675 | ' |
Change in restricted cash related to financings | ' | ' | 923 | -10,476 | ' | ' | -1 | 0 | ' | ' | 0 | 0 | ' | ' | 924 | -10,476 | ' | ' | 0 | 0 | ' |
Deferred financing costs paid | ' | ' | -16,247 | -25,301 | ' | ' | -14,175 | -19,949 | ' | ' | 0 | 0 | ' | ' | -2,072 | -5,352 | ' | ' | 0 | 0 | ' |
Proceeds from common stock offering | ' | ' | 535,686 | 98,443 | ' | ' | 535,686 | 98,443 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Proceeds from exercise of stock options | ' | ' | 0 | 155 | ' | ' | ' | 155 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' |
Dividends paid on common stock | ' | ' | -120,367 | -92,743 | ' | ' | -120,367 | -92,743 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Dividends paid on preferred stock | ' | ' | -19,414 | -21,348 | ' | ' | -19,414 | -21,348 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' |
Distributions to redeemable noncontrolling interests | ' | ' | 0 | -943 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | -943 | ' | ' | ' | 0 | ' |
Redemption of redeemable noncontrolling interests | ' | ' | 0 | -150 | ' | ' | ' | 4 | ' | ' | ' | 0 | ' | ' | ' | -154 | ' | ' | ' | 0 | ' |
Contributions by noncontrolling interests | ' | ' | 0 | 1,626 | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | 1,626 | ' | ' | ' | 0 | ' |
Distributions to noncontrolling interests | ' | ' | -2,100 | -770 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | -2,100 | -770 | ' | ' | 0 | 0 | ' |
Net cash provided by financing activities | ' | ' | 66,857 | 196,204 | ' | ' | 77,906 | 217,524 | ' | ' | 166,522 | 110,718 | ' | ' | 122,474 | 128,637 | ' | ' | -300,045 | -260,675 | ' |
Effect of foreign exchange rate changes on cash and cash equivalents | ' | ' | 752 | 1,066 | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | ' | 752 | 1,066 | ' | ' | 0 | 0 | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | -87,132 | 16,365 | ' | ' | -83,900 | 39,787 | ' | ' | -1,913 | 0 | ' | ' | -1,319 | -23,422 | ' | ' | 0 | 0 | ' |
Cash and cash equivalents at beginning of period | ' | ' | 140,971 | 78,539 | ' | ' | 98,567 | 10,608 | ' | ' | 1,913 | 0 | ' | ' | 40,491 | 67,931 | ' | ' | 0 | 0 | ' |
Cash and cash equivalents at end of period | 53,839 | 94,904 | 53,839 | 94,904 | 14,667 | 50,395 | 14,667 | 50,395 | 0 | 0 | 0 | 0 | 39,172 | 44,509 | 39,172 | 44,509 | 0 | 0 | 0 | 0 | ' |
Supplemental Disclosure of Cash Flow Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid during the period for interest, net of interest capitalized | ' | ' | 34,281 | 30,485 | ' | ' | 16,569 | 23,226 | ' | ' | 0 | 0 | ' | ' | 17,712 | 7,259 | ' | ' | 0 | 0 | ' |
Non-Cash Investing Activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note receivable from sale of real estate | ' | ' | $38,820 | $6,125 | ' | ' | $29,820 | $0 | ' | ' | $0 | $0 | ' | ' | $9,000 | $6,125 | ' | ' | $0 | $0 | ' |