Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
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 | 31-Mar-14 | ' |
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 | ' | 71,649,262 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investments in real estate, net | $6,930,262 | $6,776,914 |
Cash and cash equivalents | 74,970 | 57,696 |
Restricted cash | 30,454 | 27,709 |
Tenant receivables | 10,619 | 9,918 |
Deferred rent | 202,087 | 190,425 |
Deferred leasing and financing costs, net | 192,618 | 192,658 |
Investments | 169,322 | 140,288 |
Other assets | 145,707 | 134,156 |
Total assets | 7,756,039 | 7,529,764 |
Liabilities, Noncontrolling Interests, and Equity | ' | ' |
Secured notes payable | 597,511 | 708,831 |
Unsecured senior notes payable | 1,048,270 | 1,048,230 |
Unsecured senior line of credit | 506,000 | 204,000 |
Unsecured senior bank term loans | 1,100,000 | 1,100,000 |
Accounts payable, accrued expenses, and tenant security deposits | 443,893 | 435,342 |
Dividends payable | 55,860 | 54,420 |
Total liabilities | 3,751,534 | 3,550,823 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interests | 14,413 | 14,444 |
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 | 712 | 712 |
Additional paid-in capital | 3,560,453 | 3,572,281 |
Accumulated other comprehensive loss | -18,429 | -36,204 |
Alexandria’s stockholders’ equity | 3,922,736 | 3,916,789 |
Noncontrolling interests | 67,356 | 47,708 |
Total equity | 3,990,092 | 3,964,497 |
Total liabilities, noncontrolling interests, and equity | $7,756,039 | $7,529,764 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues: | ' | ' | ||
Rental | $130,570 | $111,526 | ||
Tenant recoveries | 41,682 | 35,565 | ||
Other Income | 3,934 | 2,992 | ||
Total revenues | 176,186 | 150,083 | ||
Expenses: | ' | ' | ||
Rental operations | 52,507 | 45,186 | ||
General and administrative | 13,224 | 11,648 | ||
Interest | 19,123 | 18,020 | ||
Depreciation and amortization | 50,421 | 45,829 | ||
Total expenses | 135,275 | 120,683 | ||
Income from continuing operations | 40,911 | 29,400 | ||
Income from discontinued operations: | ' | ' | ||
(Loss) income from discontinued operations | -162 | [1] | 837 | [1] |
Net income | 40,749 | 30,237 | ||
Net income attributable to noncontrolling interests | 1,195 | 982 | ||
Dividends on preferred stock | 6,471 | 6,471 | ||
Net income attributable to unvested restricted stock awards | 374 | 342 | ||
Net income attributable to Alexandria’s common stockholders | $32,709 | $22,442 | ||
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ' | ' | ||
Continuing operations | $0.46 | $0.35 | ||
Discontinued operations | $0 | $0.01 | ||
Earnings per share – basic and diluted | $0.46 | $0.36 | ||
[1] | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale†as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Other Comprehensive Income [Abstract] | ' | ' |
Net income | $40,749 | $30,237 |
Unrealized gains on marketable securities: | ' | ' |
Unrealized holding gains arising during the period | 18,779 | 316 |
Reclassification adjustment for gains included in net income | 0 | -272 |
Unrealized gains on marketable securities, net | 18,779 | 44 |
Unrealized gains on interest rate swap agreements: | ' | ' |
Unrealized interest rate swap gains (losses) arising during the period | 5,592 | -133 |
Reclassification adjustment for amortization of interest expense included in net income | -3,490 | 4,308 |
Unrealized gains on interest rate swap agreements, net | 2,102 | 4,175 |
Foreign currency translation losses | -3,106 | -2,360 |
Total other comprehensive income (loss) | 17,775 | 1,859 |
Comprehensive income | 58,524 | 32,096 |
Less: comprehensive income attributable to noncontrolling interests | -1,195 | -898 |
Comprehensive income attributable to Alexandria’s common stockholders | $57,329 | $31,198 |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Stockholders' Equity and Noncontrolling Interests (Unaudited) (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Redeemable Noncontrolling Interests | Series D Preferred Stock | Series D Preferred Stock | Series E Cumulative Redeemable Preferred Stock | Series E Cumulative Redeemable Preferred Stock |
In Thousands, except Share data, unless otherwise specified | Preferred Stock | Preferred Stock | |||||||||
Beginning balance at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | $14,444 | ' | ' | ' | ' |
Beginning balance at Dec. 31, 2013 | 3,964,497 | 712 | 3,572,281 | 0 | -36,204 | 47,708 | ' | ' | 250,000 | ' | 130,000 |
Beginning balance, common shares at Dec. 31, 2013 | ' | 71,172,197 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | 40,482 | ' | ' | 39,554 | ' | 928 | ' | ' | ' | ' | ' |
Total other comprehensive (loss) income | 17,775 | ' | ' | ' | 17,775 | 0 | ' | ' | ' | ' | ' |
Contributions by noncontrolling interests | 19,410 | ' | ' | ' | ' | 19,410 | ' | ' | ' | ' | ' |
Distributions to noncontrolling interests | -690 | ' | ' | ' | ' | -690 | ' | ' | ' | ' | ' |
Issuances pursuant to stock plan (in shares) | ' | 73,984 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuances pursuant to stock plan | 5,243 | 0 | 5,243 | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared on common stock | -50,154 | ' | ' | -50,154 | ' | ' | ' | ' | ' | ' | ' |
Dividends declared on preferred stock | -6,471 | ' | ' | -6,471 | ' | ' | ' | -4,400 | ' | -2,100 | ' |
Distributions in excess of earnings | ' | ' | -17,071 | 17,071 | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Temporary Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income | ' | ' | ' | ' | ' | ' | 267 | ' | ' | ' | ' |
Total other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Distributions to noncontrolling interests | ' | ' | ' | ' | ' | ' | -298 | ' | ' | ' | ' |
Ending balance at Mar. 31, 2014 | ' | ' | ' | ' | ' | ' | 14,413 | ' | ' | ' | ' |
Ending balance at Mar. 31, 2014 | $3,990,092 | $712 | $3,560,453 | $0 | ($18,429) | $67,356 | ' | ' | $250,000 | ' | $130,000 |
Ending balance, common shares at Mar. 31, 2014 | ' | 71,246,181 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income | $40,749 | $30,237 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 50,421 | 46,995 |
Loss on sale of real estate | 0 | 340 |
Amortization of loan fees and costs | 2,561 | 2,386 |
Amortization of debt premiums/discounts | 205 | 115 |
Amortization of acquired above and below market leases | -816 | -830 |
Deferred rent | -11,882 | -6,198 |
Stock compensation expense | 3,228 | 3,349 |
Investment gains | -4,040 | -446 |
Investment losses | 1,694 | 386 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | 0 | 1,506 |
Tenant receivables | -690 | -818 |
Deferred leasing costs | -7,572 | -11,757 |
Other assets | -17,315 | -7,302 |
Accounts payable, accrued expenses, and tenant security deposits | 16,716 | -10,722 |
Net cash (used in) provided by operating activities | 73,259 | 47,241 |
Investing Activities | ' | ' |
Proceeds from sale of properties | 0 | 80,203 |
Additions to properties | -111,587 | -139,245 |
Purchase of properties | -42,338 | 0 |
Change in restricted cash related to construction projects | -140 | -17 |
Contributions to unconsolidated real estate entity | -747 | -2,074 |
Additions to investments | -11,905 | -10,363 |
Proceeds from investments | 3,998 | 1,972 |
Net cash (used in) provided by investing activities | -162,719 | -69,524 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 51,030 | 17,215 |
Repayments of borrowings from secured notes payable | -210,844 | -2,749 |
Principal borrowings from unsecured senior line of credit | 360,000 | 179,000 |
Repayments of borrowings from unsecured senior line of credit | -58,000 | -191,000 |
Change in restricted cash related to financings | 1,059 | 8,656 |
Deferred financing costs paid | -8 | -46 |
Dividends paid on common stock | -48,714 | -35,687 |
Dividends paid on preferred stock | -6,471 | -6,471 |
Contributions by noncontrolling interests | 19,410 | 0 |
Distributions to noncontrolling interests | -988 | -427 |
Net cash provided by (used in) financing activities | 106,474 | -31,509 |
Effect of foreign exchange rate changes on cash and cash equivalents | 260 | -178 |
Net increase (decrease) in cash and cash equivalents | 17,274 | -53,970 |
Cash and cash equivalents at beginning of period | 57,696 | 140,971 |
Cash and cash equivalents at end of period | 74,970 | 87,001 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 6,093 | 9,964 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | 0 | 38,820 |
Change in accrued capital expenditures | -6,028 | -37,045 |
Assumption of secured notes payable in connection with purchase of properties | ($48,329) | $0 |
Background
Background | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
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 consolidated subsidiaries. | ||||
Alexandria Real Estate Equities, Inc. (NYSE:ARE), with a total market capitalization of almost $9 billion as of March 31, 2014, and an asset base of 31.2 million square feet, including 17.7 million RSF of operating and current value-creation projects, as well as an additional 13.5 million square feet in future ground-up development projects, is the largest and leading real estate investment trust (“REIT”) uniquely focused on Class A assets in collaborative science and technology campuses located in urban innovation clusters. Alexandria pioneered this niche in 1994 and has since established a dominant market presence in AAA locations including Greater Boston, the San Francisco Bay Area, New York City, Seattle, San Diego, Maryland, and Research Triangle Park. Alexandria is known for its high-quality and diverse client tenant base. As the Landlord of Choice to the Life Science Industry®, approximately 52% of Alexandria’s total annualized base rent (“ABR”) results from investment-grade client tenants (an industry-leading percentage). Alexandria has a longstanding and proven track record of developing Class A assets clustered in urban collaborative science and technology campuses that provide its client tenants with a highly collaborative, 24/7, live/work/play environment, as well as the critical ability to successfully recruit and retain best-in-class talent. We believe these advantages result in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For additional information on Alexandria, please visit www.are.com. | ||||
Our asset base contains 185 properties approximating 17.7 million rentable square feet (“RSF”), consisting of the following, as of March 31, 2014: | ||||
RSF | ||||
Operating properties | 15,670,993 | |||
Development properties | 1,823,713 | |||
Redevelopment properties | 221,225 | |||
Total | 17,715,931 | |||
Ÿ | Investment-grade client tenants represented approximately 52% of our total ABR; | |||
Ÿ | Approximately 94% of our leases (on an RSF basis) were triple net leases, requiring client tenants to pay substantially all real estate taxes, insurance, utilities, common area, and other operating expenses (including increases thereto) in addition to base rent; | |||
Ÿ | Approximately 95% of our leases (on an RSF basis) contained effective annual rent escalations that were either fixed (generally ranging from 3% to 3.5%) or indexed based on a consumer price index or other index; and | |||
Ÿ | Approximately 92% of our leases (on an RSF basis) provided for the recapture of certain capital expenditures (such as heating, ventilation, and air conditioning (“HVAC”) systems maintenance and/or replacement, roof replacement, and parking lot resurfacing) that we believe would typically be borne by the landlord in traditional office leases. | |||
Any references to the number of buildings, square footage, number of leases, occupancy, and any amounts derived from these values in the notes to the consolidated financial statements are unaudited and outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board. |
Basis_of_presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2014 | |
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, 2014. 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, 2013. | |
The accompanying consolidated financial statements include the accounts of Alexandria Real Estate Equities, Inc. and its consolidated 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 real estate 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 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. Costs related to the acquisition of businesses, including real estate acquired with in-place leases, are expensed as incurred. | |
The values allocated to buildings and building improvements, land improvements, tenant improvements, and equipment are depreciated on a straight-line basis using the shorter of the term of the respective ground lease and up to 40 years for buildings and building improvements, an estimated life of 20 years for land improvements, the respective lease term for tenant improvements, and the estimated useful life for equipment. 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, predevelopment, or construction of a project. Capitalization of development, redevelopment, predevelopment, and construction costs is required while activities are ongoing to prepare an asset for its intended use. Fluctuations in our development, redevelopment, predevelopment, 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, predevelopment, or construction activities 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: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) 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,” and if (i) the operations and cash flows of the property have been or will be eliminated from the ongoing operations, and (ii) 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 development, construction in progress, and intangibles, are individually evaluated for impairment when conditions exist that may indicate that the amount of a long-lived asset may not be recoverable. The 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 development, and construction in progress, are assessed by project and include significant fluctuations in estimated net operating income (“NOI”), 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 the “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 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 investments in certain 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 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 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 March 31, 2014, and December 31, 2013, our ownership percentage in the voting stock of each individual entity was less than 10%. | |
We monitor each of our equity investments throughout the year for new developments, including operating results, results of clinical trials, capital-raising events, and merger and acquisition activities. 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, but are not limited to, 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 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 2009 through 2013. | |
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 may 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 March 31, 2014, and December 31, 2013, we had no allowance for estimated losses. | |
Monitoring client tenant credit quality | |
During the term of each lease, we monitor the credit quality of our client tenants by (i) reviewing the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the client tenants that are publicly available or that are required to be delivered to us pursuant to the applicable lease, (iii) monitoring news reports regarding our client tenants and their respective businesses, and (iv) monitoring the timeliness of lease payments. We have a team of employees who, among them, have graduate and undergraduate degrees in biology, chemistry, and industrial biotechnology and experience in the life science industry, as well as in finance. This research team is responsible for assessing and monitoring the credit quality of our client tenants and any material changes in credit quality. | |
Interest income | |
Interest income was $0.9 million and $1.3 million during the three months ended March 31, 2014 and 2013, respectively. Interest income is included in other income in the accompanying consolidated statements of income. | |
Impact of recently issued accounting standards | |
In April 2014, the FASB issued an Accounting Standards Update (“ASU”) on the reporting of discontinued operations, which raises the threshold for disposals to qualify as discontinued operations. Under this ASU, a discontinued operation is (i) a component of an entity or group of components that has been disposed of by sale, that has been disposed of other than by sale, or that is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. A strategic shift that has or will have a major effect on an entity’s operations and financial results could include the disposal of (i) a major line of business, (ii) a major geographic area, (iii) a major equity method investment, or (iv) other major parts of an entity. Under current GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement with the component after the disposal. This ASU eliminates these criteria and is effective for public companies during the interim and annual periods, beginning after December 15, 2014. We are required to adopt this ASU no later than January 1, 2015. We expect the adoption of this ASU to result in fewer real estate sales qualifying for classification as discontinued operations in our consolidated results and related disclosures. |
Investments_in_real_estate_net
Investments in real estate, net | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Investments in real estate, net | ' | ||||||||
Investments in real estate, net | |||||||||
Our investments in real estate, net, consisted of the following as of March 31, 2014, and December 31, 2013 (in thousands): | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Rental properties: | |||||||||
Land (related to rental properties) | $ | 567,232 | $ | 553,388 | |||||
Buildings and building improvements | 5,787,040 | 5,714,673 | |||||||
Other improvements | 191,276 | 174,147 | |||||||
Rental properties | 6,545,548 | 6,442,208 | |||||||
Less: accumulated depreciation | (992,818 | ) | (952,106 | ) | |||||
Rental properties, net | 5,552,730 | 5,490,102 | |||||||
Construction in progress (“CIP”)/current value-creation projects: | |||||||||
Current development in North America | 562,873 | 511,838 | |||||||
Investment in unconsolidated joint venture | 47,390 | (1) | 46,644 | (1) | |||||
Current redevelopment in North America | 34,434 | 8,856 | |||||||
Current development and redevelopment in Asia | 59,540 | 60,928 | |||||||
704,237 | 628,266 | ||||||||
Subtotal | 6,256,967 | 6,118,368 | |||||||
Land/value-creation projects: | |||||||||
Land undergoing predevelopment activities (CIP) in North America | 379,997 | 367,225 | |||||||
Land held for development in North America | 191,875 | 191,127 | |||||||
Land held for development/undergoing predevelopment activities (CIP) in Asia | 78,569 | 77,251 | |||||||
Land subject to sale negotiations | 22,854 | 22,943 | |||||||
673,295 | 658,546 | ||||||||
Investments in real estate, net | $ | 6,930,262 | $ | 6,776,914 | |||||
-1 | Represents our investment under the equity method of accounting in the unconsolidated joint venture development project located at 360 Longwood Avenue. | ||||||||
Acquisitions | |||||||||
In January 2014, we acquired 3545 Cray Court, a 116,556 RSF laboratory/office property located in the Torrey Pines submarket of San Diego, for $64.0 million. The property is currently 100% occupied. In connection with the acquisition, we assumed a $40.7 million non-recourse secured note payable with a contractual interest rate of 4.66% and a maturity in January 2023. | |||||||||
In March 2014, we acquired 225 Second Avenue, a vacant 112,500 RSF office property located in the Route 128 submarket of Greater Boston, for $16.3 million. The property is undergoing conversion into a laboratory/office space through redevelopment. | |||||||||
In March 2014, we acquired 4025/4031/4045 Sorrento Valley Boulevard, three adjacent buildings aggregating 42,566 RSF located in the Sorrento Valley submarket of San Diego, for a total purchase price of $12.4 million. These properties are currently 100% occupied. In connection with the acquisition, we assumed a $7.6 million non-recourse secured note payable with a contractual interest rate of 5.74% and a maturity in April 2016. | |||||||||
Current development and redevelopment projects | |||||||||
As of March 31, 2014, we had five ground-up development projects in process in North America, including an unconsolidated joint venture development project, aggregating 1.4 million RSF. We also had three projects undergoing conversion into laboratory/office space through redevelopment in North America aggregating 221,225 RSF. | |||||||||
Investment in unconsolidated real estate entity | |||||||||
We have a 27.5% equity interest in an unconsolidated joint venture that is currently developing a building aggregating 413,536 RSF in the Longwood Medical Area submarket of Greater Boston. We account for this investment under the equity method of accounting. Our investment under the equity method of accounting was $47.4 million as of March 31, 2014. | |||||||||
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 (CIP) | |||||||||
Land undergoing predevelopment activities is classified as construction in progress and is undergoing activities prior to commencement of construction of aboveground 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. If aboveground construction is not initiated at completion of predevelopment activities, the land parcel will be classified as land held for 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 and reusable infrastructure to accommodate single and multi-tenancy. As of March 31, 2014, we held land undergoing predevelopment activities in North America aggregating 2.7 million RSF. The largest project included in land undergoing predevelopment activities consists of substantially all of our 1.2 million square feet at the Alexandria Center™ at Kendall Square located in East Cambridge, Massachusetts. | |||||||||
Predevelopment costs generally include the following activities prior to commencement of vertical construction: | |||||||||
Ÿ | Traditional predevelopment costs, including entitlement, design, construction drawings, BIM (3-D virtual modeling), budgeting, sustainability and energy optimization reviews, permitting, and planning for all aspects of the project; and | ||||||||
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 construction of aboveground building improvements. For example, site and infrastructure costs for the 1.2 million RSF primarily related to 50, 60, and 100 Binney Street of the Alexandria Center™ at Kendall Square are classified as predevelopment prior to commencement of vertical construction. | ||||||||
Land held for development | |||||||||
Land held for development represents real estate we plan to develop in the future, but for which, as of each period presented, no construction or predevelopment activities were ongoing. As a result, interest, property taxes, insurance, and other costs are expensed as incurred. As of March 31, 2014, we held land in North America supporting an aggregate of 3.1 million RSF of ground-up development. |
Investments
Investments | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Investments [Abstract] | ' | |||||||
Investments | ' | |||||||
Investments | ||||||||
We hold investments in certain publicly traded companies and privately held entities involved primarily in life science and related industries. Our investments in publicly traded companies are accounted for as “available for sale” securities that are carried at their fair values. Investments in “available for sale” securities with gross unrealized losses as of March 31, 2014, had 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 have not recognized other-than-temporary impairments related to “available for sale” securities as of March 31, 2014. As of March 31, 2014, and December 31, 2013, there were no unrealized losses in our investments in privately held entities. | ||||||||
The following table summarizes our investments as of March 31, 2014, and December 31, 2013 (in thousands): | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
“Available-for-sale” marketable equity securities, cost basis | $ | 12,608 | $ | 2,879 | ||||
Unrealized gains | 21,447 | (1) | 2,177 | |||||
Unrealized losses | (1,078 | ) | (587 | ) | ||||
“Available-for-sale” marketable equity securities, at fair value | 32,977 | 4,469 | ||||||
Investments accounted for under cost method | 136,345 | 135,819 | ||||||
Total investments | $ | 169,322 | $ | 140,288 | ||||
-1 | Increase in our investments during the three months ended March 31, 2014, was primarily related to an increase in unrealized gains of approximately $18.8 million related to our investments in publicly traded life science companies. These unrealized gains are a component of our comprehensive income, within our stockholders’ equity, and have not been recognized in the accompanying consolidated statement of income for the three months ended March 31, 2014. | |||||||
The following table outlines our investment income, which is classified in other income in the accompanying consolidated statements of income (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Investment gains | $ | 4,040 | $ | 446 | ||||
Investment losses | (1,694 | ) | (386 | ) | ||||
Investment income | $ | 2,346 | $ | 60 | ||||
Secured_and_unsecured_senior_d
Secured and unsecured senior debt | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Secured and unsecured senior debt | ' | ||||||||||||||||||||||||||||||||||||
Secured and unsecured senior debt | |||||||||||||||||||||||||||||||||||||
The following table summarizes our secured and unsecured senior debt as of March 31, 2014 (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 | $ | 424,287 | $ | 173,224 | $ | 597,511 | 18.4 | % | 4.98 | % | 3.4 | ||||||||||||||||||||||||||
Unsecured senior notes payable | 1,048,270 | — | 1,048,270 | 32.1 | 4.29 | 8.6 | |||||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | — | 506,000 | 506,000 | 15.6 | 1.25 | 4.8 | |||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | 350,000 | 150,000 | 500,000 | 15.4 | 1.4 | 2.3 | |||||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | 600,000 | — | 600,000 | 18.5 | 2.05 | 4.8 | |||||||||||||||||||||||||||||||
Total/weighted average | $ | 2,422,557 | $ | 829,224 | $ | 3,251,781 | 100 | % | 3.09 | % | 5.4 | ||||||||||||||||||||||||||
Percentage of total debt | 74 | % | 26 | % | 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 and respective principal maturities as of | |||||||||||||||||||||||||||||||||||||
March 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Stated | Weighted Average | Maturity Date(2) | Principal Payments Remaining for the Period Ending December 31, | ||||||||||||||||||||||||||||||||||
Debt | Rate | Interest Rate(1) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||||||||
Secured notes payable | |||||||||||||||||||||||||||||||||||||
San Diego | 6.05 | % | 4.88 | % | 7/1/14 | (3) | $ | 6,419 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,419 | |||||||||||||||||
San Diego | 5.39 | 4 | 11/1/14 | 7,433 | — | — | — | — | — | 7,433 | |||||||||||||||||||||||||||
Seattle | 6 | 6 | 11/18/14 | 180 | — | — | — | — | — | 180 | |||||||||||||||||||||||||||
Maryland | 5.64 | 4.5 | 6/1/15 | 103 | 5,777 | — | — | — | — | 5,880 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | 1.66 | 7/1/15 | (4) | — | 46,203 | — | — | — | — | 46,203 | ||||||||||||||||||||||||||
Greater Boston, San Francisco Bay Area, and San Diego | 5.73 | 5.73 | 1/1/16 | 1,279 | 1,816 | 75,501 | — | — | — | 78,596 | |||||||||||||||||||||||||||
Greater Boston, San Diego, and Greater New York City | 5.82 | 5.82 | 4/1/16 | 697 | 988 | 29,389 | — | — | — | 31,074 | |||||||||||||||||||||||||||
San Diego | 5.74 | 3 | 4/15/16 | 125 | 175 | 6,916 | — | — | — | 7,216 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | 1.56 | 6/1/16 | (5) | — | — | 6,419 | — | — | — | 6,419 | ||||||||||||||||||||||||||
San Francisco Bay Area | 6.35 | 6.35 | 8/1/16 | 1,851 | 2,652 | 126,715 | — | — | — | 131,218 | |||||||||||||||||||||||||||
Maryland | 2.15 | 2.15 | 1/20/17 | — | — | — | 76,000 | — | — | 76,000 | |||||||||||||||||||||||||||
Greater Boston | L+1.35 | 1.51 | 8/23/17 | (6) | — | — | — | 44,422 | — | — | 44,422 | ||||||||||||||||||||||||||
San Diego, Maryland, and Seattle | 7.75 | 7.75 | 4/1/20 | 1,100 | 1,570 | 1,696 | 1,832 | 1,979 | 106,491 | 114,668 | |||||||||||||||||||||||||||
San Diego | 4.66 | 4.66 | 1/1/23 | 891 | 1,396 | 1,458 | 1,534 | 1,608 | 33,501 | 40,388 | |||||||||||||||||||||||||||
San Francisco Bay Area | 6.5 | 6.5 | 6/1/37 | 17 | 18 | 19 | 20 | 22 | 751 | 847 | |||||||||||||||||||||||||||
Unamortized premiums | 270 | 218 | 60 | — | — | — | 548 | ||||||||||||||||||||||||||||||
Secured notes payable average/subtotal | 5.06 | % | 4.98 | 20,365 | 60,813 | 248,173 | 123,808 | 3,609 | 140,743 | 597,511 | |||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.4 | 7/31/16 | — | — | 500,000 | — | — | — | 500,000 | ||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 2.05 | 1/3/19 | — | — | — | — | — | 600,000 | 600,000 | ||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | L+1.10 | % | (7) | 1.25 | 1/3/19 | — | — | — | — | — | 506,000 | 506,000 | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Unamortized discounts | (123 | ) | (170 | ) | (176 | ) | (184 | ) | (192 | ) | (885 | ) | (1,730 | ) | |||||||||||||||||||||||
Unsecured debt average/subtotal | 2.66 | (123 | ) | (170 | ) | 499,824 | (184 | ) | (192 | ) | 2,155,115 | 2,654,270 | |||||||||||||||||||||||||
Average/total | 3.09 | % | $ | 20,242 | $ | 60,643 | $ | 747,997 | $ | 123,624 | $ | 3,417 | $ | 2,295,858 | $ | 3,251,781 | |||||||||||||||||||||
Balloon payments | $ | 13,722 | $ | 51,919 | $ | 743,364 | $ | 120,422 | $ | — | $ | 2,286,611 | $ | 3,216,038 | |||||||||||||||||||||||
Principal amortization | 6,520 | 8,724 | 4,633 | 3,202 | 3,417 | 9,247 | 35,743 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 20,242 | $ | 60,643 | $ | 747,997 | $ | 123,624 | $ | 3,417 | $ | 2,295,858 | $ | 3,251,781 | |||||||||||||||||||||||
Fixed-rate/hedged variable-rate debt | $ | 20,062 | $ | 14,440 | $ | 591,578 | $ | 3,202 | $ | 3,417 | $ | 1,789,858 | $ | 2,422,557 | |||||||||||||||||||||||
Unhedged variable-rate debt | 180 | 46,203 | 156,419 | 120,422 | — | 506,000 | 829,224 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 20,242 | $ | 60,643 | $ | 747,997 | $ | 123,624 | $ | 3,417 | $ | 2,295,858 | $ | 3,251,781 | |||||||||||||||||||||||
-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 | Secured note payable was repaid on April 2, 2014. | ||||||||||||||||||||||||||||||||||||
-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 $36.0 million. We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-6 | Secured construction loan with aggregate commitments of $250.4 million. We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-7 | In addition to the stated rate, the unsecured senior line of credit is subject to an annual facility fee of 0.20%. | ||||||||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||
The following table summarizes interest expense for the three months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Gross interest | $ | 31,136 | $ | 32,041 | |||||||||||||||||||||||||||||||||
Capitalized interest | (12,013 | ) | (14,021 | ) | |||||||||||||||||||||||||||||||||
Interest expense | $ | 19,123 | $ | 18,020 | |||||||||||||||||||||||||||||||||
Repayment of secured note payable | |||||||||||||||||||||||||||||||||||||
In January 2014, we repaid our $208.7 million secured note payable related to Alexandria Technology Square®. Our joint venture partner funded $20.9 million of the proceeds required to repay the secured note payable. | |||||||||||||||||||||||||||||||||||||
Secured construction loans | |||||||||||||||||||||||||||||||||||||
The following table summarizes our secured construction loans as of March 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Market | Stated Rate | Maturity Date | Outstanding Loan Balance | Available Balance | Total Aggregate Commitments | ||||||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | % | 7/1/15 | (1) | $ | 46,203 | $ | 8,797 | $ | 55,000 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | % | 6/1/16 | (2) | 6,419 | 29,581 | 36,000 | ||||||||||||||||||||||||||||||
Greater Boston | L+1.35 | % | 8/23/17 | (3) | 44,422 | 205,978 | 250,400 | ||||||||||||||||||||||||||||||
$ | 97,044 | $ | 244,356 | $ | 341,400 | ||||||||||||||||||||||||||||||||
-1 | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-2 | We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-3 | We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
Secured construction loan of unconsolidated joint venture | |||||||||||||||||||||||||||||||||||||
We have a 27.5% equity interest in an unconsolidated joint venture that is currently developing a building in the Longwood Medical Area of the Greater Boston market. The remaining construction costs will be funded primarily from a non-recourse secured construction loan to the joint venture with aggregate commitments of $213.2 million and an outstanding balance of $107.0 million as of March 31, 2014. See Note 3 – Investments in Real Estate, Net, to our consolidated financial statements (unaudited) appearing elsewhere in this quarterly report on Form 10-Q for further information. |
Interest_rate_swap_agreements
Interest rate swap agreements | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||
Interest rate swap agreements | ' | ||||||||||||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||||||||
We use interest rate swap agreements 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 three months ended March 31, 2014 and 2013, our interest rate swap agreements were 100% effective; because of this, no hedge ineffectiveness was recognized in earnings. Changes in fair value, including accrued interest and adjustments for non-performance risk, on the effective portion of our interest rate swap agreements that are designated and that qualify as cash flow hedges are classified in accumulated other comprehensive loss. Amounts classified in accumulated other comprehensive loss 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 $3.6 million in accumulated other comprehensive loss to interest expense as an increase to interest expense. As of March 31, 2014, and December 31, 2013, the fair values of our interest rate swap agreements aggregating an asset balance were classified in other assets and those aggregating a liability balance were classified in accounts payable, accrued expenses, and tenant security deposits, based upon their respective fair values. Under our interest rate swap agreements, we have no collateral posting requirements. | |||||||||||||||||||||||||||
As of March 31, 2014, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $2.4 million. The Company has agreements with certain of its derivative counterparties that contain a provision where (i) the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company's default on the indebtedness; or (ii) if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. If the Company had breached any of these provisions at March 31, 2014, it could have been required to settle its obligations under the agreements at their termination value of $2.4 million. | |||||||||||||||||||||||||||
We had the following outstanding interest rate swap agreements that were designated as cash flow hedges of interest rate risk as of March 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||
Effective Date | Maturity Date | Number of Contracts | Weighted Average Interest Pay | Fair Value as of 3/31/14 | Notional Amount in Effect as of | ||||||||||||||||||||||
Rate (1) | 3/31/14 | 12/31/14 | 12/31/15 | 12/31/16 | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-14 | 2 | 0.98% | $ | (3,090 | ) | $ | 500,000 | $ | — | $ | — | $ | — | |||||||||||||
31-Dec-13 | 31-Mar-15 | 2 | 0.23% | (126 | ) | 250,000 | 250,000 | — | — | ||||||||||||||||||
31-Mar-14 | 31-Mar-15 | 4 | 0.21% | (48 | ) | 200,000 | 200,000 | — | — | ||||||||||||||||||
31-Dec-14 | 31-Mar-16 | 3 | 0.53% | 394 | — | 500,000 | 500,000 | — | |||||||||||||||||||
31-Mar-16 | 31-Mar-17 | 3 | 1.40% | 1,651 | — | — | — | 500,000 | |||||||||||||||||||
Total | $ | (1,219 | ) | $ | 950,000 | $ | 950,000 | $ | 500,000 | $ | 500,000 | ||||||||||||||||
-1 | In addition to the interest pay rate, borrowings outstanding as of March 31, 2014, under our unsecured senior bank term loans include an applicable margin of 1.20% and borrowings outstanding under our unsecured senior line of credit include an applicable margin of 1.10%. |
Fair_value_measurements
Fair value measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 months ended March 31, 2014 and 2013. | |||||||||||||||||
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 March 31, 2014, and December 31, 2013 (in thousands): | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | 32,977 | $ | 32,977 | $ | — | $ | — | |||||||||
Interest rate swap agreements | $ | 2,045 | $ | — | $ | 2,045 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,264 | $ | — | $ | 3,264 | $ | — | |||||||||
31-Dec-13 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | 4,469 | $ | 4,469 | $ | — | $ | — | |||||||||
Interest rate swap agreements | $ | 2,870 | $ | — | $ | 2,870 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 6,191 | $ | — | $ | 6,191 | $ | — | |||||||||
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. See Note 6 – Interest Rate Swap Agreements for further details on our interest rate swap agreements. 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 March 31, 2014, and December 31, 2013, the book and fair values of our marketable equity 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): | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Marketable equity securities | $ | 32,977 | $ | 32,977 | $ | 4,469 | $ | 4,469 | |||||||||
Interest rate swap agreements | $ | 2,045 | $ | 2,045 | $ | 2,870 | $ | 2,870 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,264 | $ | 3,264 | $ | 6,191 | $ | 6,191 | |||||||||
Secured notes payable | $ | 597,511 | $ | 617,084 | $ | 708,831 | $ | 736,772 | |||||||||
Unsecured senior notes payable | $ | 1,048,270 | $ | 1,053,170 | $ | 1,048,230 | $ | 1,043,125 | |||||||||
Unsecured senior line of credit | $ | 506,000 | $ | 500,860 | $ | 204,000 | $ | 193,714 | |||||||||
Unsecured senior bank term loans | $ | 1,100,000 | $ | 1,099,448 | $ | 1,100,000 | $ | 1,099,897 | |||||||||
Earnings_per_share
Earnings per share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 FASB, 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. | ||||||||
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 cumulative convertible preferred stock (“Series D 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, during the period the securities 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 months ended March 31, 2014 and 2013 (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Income from continuing operations | $ | 40,911 | $ | 29,400 | ||||
Net income attributable to noncontrolling interests | (1,195 | ) | (982 | ) | ||||
Dividends on preferred stock | (6,471 | ) | (6,471 | ) | ||||
Net income attributable to unvested restricted stock awards | (374 | ) | (342 | ) | ||||
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted | 32,871 | 21,605 | ||||||
(Loss) income from discontinued operations | (162 | ) | 837 | |||||
Net income attributable to Alexandria’s common stockholders – basic and diluted | $ | 32,709 | $ | 22,442 | ||||
Weighted average shares of common stock outstanding – basic and diluted | 71,073 | 63,161 | ||||||
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ||||||||
Continuing operations | $ | 0.46 | $ | 0.35 | ||||
Discontinued operations | — | 0.01 | ||||||
Earnings per share – basic and diluted | $ | 0.46 | $ | 0.36 | ||||
For purposes of calculating diluted earnings per share, we did not assume conversion of our Series D Preferred Stock for the three months ended March 31, 2014 and 2013, 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. | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 presents income from continuing and discontinued operations attributable to Alexandria Real Estate Equities, Inc. for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Income from continuing operations | $ | 40,911 | $ | 29,400 | ||||
Less: net income attributable to noncontrolling interests | (1,195 | ) | (982 | ) | ||||
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc. | 39,716 | 28,418 | ||||||
(Loss) income from discontinued operations | (162 | ) | 837 | |||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | ||||||
Net income attributable to Alexandria Real Estate Equities, Inc. | $ | 39,554 | $ | 29,255 | ||||
Stockholders_equity
Stockholders' equity | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Stockholders' equity | ' | |||||||||||||||
Stockholders’ equity | ||||||||||||||||
Dividends | ||||||||||||||||
In March 2014, we declared cash dividends on our common stock for the first quarter of 2014, aggregating $50.2 million, or $0.70 per share. In March 2014, we also declared cash dividends on our Series D Preferred Stock for the first quarter of 2014, aggregating approximately $4.4 million, or $0.4375 per share. Additionally, we declared cash dividends on our Series E cumulative redeemable preferred stock (“Series E Preferred Stock”) for the first quarter of 2014, aggregating approximately $2.1 million, or $0.403125 per share. In April 2014, we paid the cash dividends on our common stock, Series D Preferred Stock, and Series E Preferred Stock for the first quarter of 2014. | ||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc. 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, 2013 | $ | 1,590 | $ | (3,321 | ) | $ | (34,473 | ) | $ | (36,204 | ) | |||||
Other comprehensive income (loss) before reclassifications | 18,779 | 5,592 | (3,106 | ) | 21,265 | |||||||||||
Amounts reclassified from other comprehensive income | — | (3,490 | ) | — | (3,490 | ) | ||||||||||
Net other comprehensive income (loss) | 18,779 | 2,102 | (3,106 | ) | 17,775 | |||||||||||
Balance as of March 31, 2014 | $ | 20,369 | $ | (1,219 | ) | $ | (37,579 | ) | $ | (18,429 | ) | |||||
Preferred stock and excess stock authorizations | ||||||||||||||||
Our charter authorizes the issuance of up to 100.0 million shares of preferred stock, of which 15.2 million shares were issued and outstanding as of March 31, 2014. In addition, 200.0 million shares of “excess stock” (as defined in our charter) are authorized, none of which were issued and outstanding as of March 31, 2014. |
Noncontrolling_interests
Noncontrolling interests | 3 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014, 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 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 March 31, 2014, and December 31, 2013, our redeemable noncontrolling interest balances were $14.4 million and $14.4 million, respectively. Our remaining noncontrolling interests, aggregating $67.4 million and $47.7 million as of March 31, 2014, and December 31, 2013, 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
Discontinued operations | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Discontinued operations | ' | ||||||||
Discontinued operations | |||||||||
The following is a summary of net assets of discontinued operations and (loss) income from discontinued operations (in thousands): | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Properties “held for sale,” net | $ | 7,653 | $ | 7,644 | |||||
Other assets | 157 | 103 | |||||||
Total assets | 7,810 | 7,747 | |||||||
Total liabilities | (132 | ) | (266 | ) | |||||
Net assets of discontinued operations | $ | 7,678 | $ | 7,481 | |||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Total revenues | $ | — | $ | 3,792 | |||||
Operating expenses | (162 | ) | (1,449 | ) | |||||
Total revenues less operating expenses from discontinued operations | (162 | ) | 2,343 | ||||||
Depreciation expense | — | (1,166 | ) | ||||||
Loss on sale of real estate | — | (340 | ) | ||||||
(Loss) income from discontinued operations (1) | $ | (162 | ) | $ | 837 | ||||
-1 | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale” as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Subsequent_events
Subsequent events | 3 Months Ended |
Mar. 31, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent events | ' |
Subsequent events | |
Amended and extended employment agreement with Mr. Marcus | |
In April 2014, the Board of Directors amended and extended the term of the employment agreement with Joel S. Marcus through December 31, 2016, subject to an extension to December 31, 2018, in the form of an option, exercisable by either the Company or Mr. Marcus, for Mr. Marcus to serve as full-time Executive Chairman. We believe changes in compensation arrangements appropriately address expressed concerns on the 2013 non-binding say-on-pay vote, and better align pay-for-performance, while at the same time continuing to retain Mr. Marcus’ highly valuable services. | |
Acquisition of 500 Townsend Street | |
In April 2014, we acquired a land parcel, supporting approximately 300,000 gross square feet, in the SoMa submarket of San Francisco for a purchase price of $50.0 million. We are in the process of perfecting entitlements, marketing for lease, and plan to commence construction as soon as possible in 2015. |
Condensed_consolidating_financ
Condensed consolidating financial information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Condensed Consolidated Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed consolidating financial information | ' | |||||||||||||||||||
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” or the “Guarantor Subsidiary”), 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 March 31, 2014, and December 31, 2013, and the condensed consolidating statements of income, comprehensive income, and cash flows for the three months ended March 31, 2014 and 2013, for the Issuer, the Guarantor Subsidiary, the Combined Non-Guarantor Subsidiaries, the eliminations necessary to arrive at the information for Alexandria Real Estate Equities, Inc. 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 March 31, 2014 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 6,930,262 | $ | — | $ | 6,930,262 | ||||||||||
Cash and cash equivalents | 36,379 | — | 38,591 | — | 74,970 | |||||||||||||||
Restricted cash | 54 | — | 30,400 | — | 30,454 | |||||||||||||||
Tenant receivables | — | — | 10,619 | — | 10,619 | |||||||||||||||
Deferred rent | — | — | 202,087 | — | 202,087 | |||||||||||||||
Deferred leasing and financing costs, net | 35,051 | — | 157,567 | — | 192,618 | |||||||||||||||
Investments | — | 10,868 | 158,454 | — | 169,322 | |||||||||||||||
Investments in and advances to affiliates | 6,601,258 | 6,090,900 | 124,891 | (12,817,049 | ) | — | ||||||||||||||
Other assets | 18,755 | — | 126,952 | — | 145,707 | |||||||||||||||
Total assets | $ | 6,691,497 | $ | 6,101,768 | $ | 7,779,823 | $ | (12,817,049 | ) | $ | 7,756,039 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 597,511 | $ | — | $ | 597,511 | ||||||||||
Unsecured senior notes payable | 1,048,270 | — | — | — | 1,048,270 | |||||||||||||||
Unsecured senior line of credit | 506,000 | — | — | — | 506,000 | |||||||||||||||
Unsecured senior bank term loans | 1,100,000 | — | — | — | 1,100,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 58,921 | — | 384,972 | — | 443,893 | |||||||||||||||
Dividends payable | 55,570 | — | 290 | — | 55,860 | |||||||||||||||
Total liabilities | 2,768,761 | — | 982,773 | — | 3,751,534 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,413 | — | 14,413 | |||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,922,736 | 6,101,768 | 6,715,281 | (12,817,049 | ) | 3,922,736 | ||||||||||||||
Noncontrolling interests | — | — | 67,356 | — | 67,356 | |||||||||||||||
Total equity | 3,922,736 | 6,101,768 | 6,782,637 | (12,817,049 | ) | 3,990,092 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,691,497 | $ | 6,101,768 | $ | 7,779,823 | $ | (12,817,049 | ) | $ | 7,756,039 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of December 31, 2013 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 6,776,914 | $ | — | $ | 6,776,914 | ||||||||||
Cash and cash equivalents | 14,790 | — | 42,906 | — | 57,696 | |||||||||||||||
Restricted cash | 55 | — | 27,654 | — | 27,709 | |||||||||||||||
Tenant receivables | — | — | 9,918 | — | 9,918 | |||||||||||||||
Deferred rent | — | — | 190,425 | — | 190,425 | |||||||||||||||
Deferred leasing and financing costs, net | 36,901 | — | 155,757 | — | 192,658 | |||||||||||||||
Investments | — | 10,868 | 129,420 | — | 140,288 | |||||||||||||||
Investments in and advances to affiliates | 6,299,551 | 5,823,058 | 119,421 | (12,242,030 | ) | — | ||||||||||||||
Other assets | 20,226 | — | 113,930 | — | 134,156 | |||||||||||||||
Total assets | $ | 6,371,523 | $ | 5,833,926 | $ | 7,566,345 | $ | (12,242,030 | ) | $ | 7,529,764 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 708,831 | $ | — | $ | 708,831 | ||||||||||
Unsecured senior notes payable | 1,048,230 | — | — | — | 1,048,230 | |||||||||||||||
Unsecured senior line of credit | 204,000 | — | — | — | 204,000 | |||||||||||||||
Unsecured senior bank term loans | 1,100,000 | — | — | — | 1,100,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 48,373 | — | 386,969 | — | 435,342 | |||||||||||||||
Dividends payable | 54,131 | — | 289 | — | 54,420 | |||||||||||||||
Total liabilities | 2,454,734 | — | 1,096,089 | — | 3,550,823 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,444 | — | 14,444 | |||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,916,789 | 5,833,926 | 6,408,104 | (12,242,030 | ) | 3,916,789 | ||||||||||||||
Noncontrolling interests | — | — | 47,708 | — | 47,708 | |||||||||||||||
Total equity | 3,916,789 | 5,833,926 | 6,455,812 | (12,242,030 | ) | 3,964,497 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,371,523 | $ | 5,833,926 | $ | 7,566,345 | $ | (12,242,030 | ) | $ | 7,529,764 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 130,570 | $ | — | $ | 130,570 | ||||||||||
Tenant recoveries | — | — | 41,682 | — | 41,682 | |||||||||||||||
Other income | 2,919 | — | 4,633 | (3,618 | ) | 3,934 | ||||||||||||||
Total revenues | 2,919 | — | 176,885 | (3,618 | ) | 176,186 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 52,507 | — | 52,507 | |||||||||||||||
General and administrative | 10,860 | — | 5,982 | (3,618 | ) | 13,224 | ||||||||||||||
Interest | 13,539 | — | 5,584 | — | 19,123 | |||||||||||||||
Depreciation and amortization | 1,471 | — | 48,950 | — | 50,421 | |||||||||||||||
Total expenses | 25,870 | — | 113,023 | (3,618 | ) | 135,275 | ||||||||||||||
(Loss) income from continuing operations before equity in earnings of affiliates | (22,951 | ) | — | 63,862 | — | 40,911 | ||||||||||||||
Equity in earnings of affiliates | 62,505 | 58,306 | 1,148 | (121,959 | ) | — | ||||||||||||||
Income from continuing operations | 39,554 | 58,306 | 65,010 | (121,959 | ) | 40,911 | ||||||||||||||
Loss from discontinued operations | — | — | (162 | ) | — | (162 | ) | |||||||||||||
Net income | 39,554 | 58,306 | 64,848 | (121,959 | ) | 40,749 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 1,195 | — | 1,195 | |||||||||||||||
Dividends on preferred stock | 6,471 | — | — | — | 6,471 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 374 | — | — | — | 374 | |||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 32,709 | $ | 58,306 | $ | 63,653 | $ | (121,959 | ) | $ | 32,709 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | — | $ | — | $ | 111,526 | $ | — | $ | 111,526 | ||||||||||
Tenant recoveries | — | — | 35,565 | — | 35,565 | |||||||||||||||
Other income | 2,595 | (66 | ) | 3,571 | (3,108 | ) | 2,992 | |||||||||||||
Total revenues | 2,595 | (66 | ) | 150,662 | (3,108 | ) | 150,083 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 45,186 | — | 45,186 | |||||||||||||||
General and administrative | 10,269 | — | 4,487 | (3,108 | ) | 11,648 | ||||||||||||||
Interest | 11,720 | — | 6,300 | — | 18,020 | |||||||||||||||
Depreciation and amortization | 1,475 | — | 44,354 | — | 45,829 | |||||||||||||||
Total expenses | 23,464 | — | 100,327 | (3,108 | ) | 120,683 | ||||||||||||||
(Loss) income from continuing operations before equity in earnings of affiliates | (20,869 | ) | (66 | ) | 50,335 | — | 29,400 | |||||||||||||
Equity in earnings of affiliates | 49,807 | 47,239 | 960 | (98,006 | ) | — | ||||||||||||||
Income from continuing operations | 28,938 | 47,173 | 51,295 | (98,006 | ) | 29,400 | ||||||||||||||
Income from discontinued operations | 317 | — | 520 | — | 837 | |||||||||||||||
Net income | 29,255 | 47,173 | 51,815 | (98,006 | ) | 30,237 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 982 | — | 982 | |||||||||||||||
Dividends on preferred stock | 6,471 | — | — | — | 6,471 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 342 | — | — | — | 342 | |||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 22,442 | $ | 47,173 | $ | 50,833 | $ | (98,006 | ) | $ | 22,442 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | 39,554 | $ | 58,306 | $ | 64,848 | $ | (121,959 | ) | $ | 40,749 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains on marketable securities: | ||||||||||||||||||||
Unrealized holding gains arising during the period | — | — | 18,779 | — | 18,779 | |||||||||||||||
Reclassification adjustment for losses included in net income | — | — | — | — | — | |||||||||||||||
Unrealized gains on marketable securities | — | — | 18,779 | — | 18,779 | |||||||||||||||
Unrealized gains on interest rate swap agreements: | ||||||||||||||||||||
Unrealized interest rate swap gains arising during the period | 5,592 | — | — | — | 5,592 | |||||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | (3,490 | ) | — | — | — | (3,490 | ) | |||||||||||||
Unrealized gains on interest rate swap agreements | 2,102 | — | — | — | 2,102 | |||||||||||||||
Foreign currency translation losses | — | — | (3,106 | ) | — | (3,106 | ) | |||||||||||||
Total other comprehensive income | 2,102 | — | 15,673 | — | 17,775 | |||||||||||||||
Comprehensive income | 41,656 | 58,306 | 80,521 | (121,959 | ) | 58,524 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (1,195 | ) | — | (1,195 | ) | |||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 41,656 | $ | 58,306 | $ | 79,326 | $ | (121,959 | ) | $ | 57,329 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | 29,255 | $ | 47,173 | $ | 51,815 | $ | (98,006 | ) | $ | 30,237 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains on marketable securities: | ||||||||||||||||||||
Unrealized holding (losses) gains arising during the period | — | (8 | ) | 324 | — | 316 | ||||||||||||||
Reclassification adjustment for losses (gains) included in net income | — | 38 | (310 | ) | — | (272 | ) | |||||||||||||
Unrealized gains on marketable securities | — | 30 | 14 | — | 44 | |||||||||||||||
Unrealized gains on interest rate swap agreements: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (133 | ) | — | — | — | (133 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 4,308 | — | — | — | 4,308 | |||||||||||||||
Unrealized gains on interest rate swap agreements | 4,175 | — | — | — | 4,175 | |||||||||||||||
Foreign currency translation losses | — | — | (2,360 | ) | — | (2,360 | ) | |||||||||||||
Total other comprehensive income (loss) | 4,175 | 30 | (2,346 | ) | — | 1,859 | ||||||||||||||
Comprehensive income | 33,430 | 47,203 | 49,469 | (98,006 | ) | 32,096 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (898 | ) | — | (898 | ) | |||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 33,430 | $ | 47,203 | $ | 48,571 | $ | (98,006 | ) | $ | 31,198 | |||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | 39,554 | $ | 58,306 | $ | 64,848 | $ | (121,959 | ) | $ | 40,749 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,471 | — | 48,950 | — | 50,421 | |||||||||||||||
Amortization of loan fees and costs | 1,770 | — | 791 | — | 2,561 | |||||||||||||||
Amortization of debt premiums/discounts | 40 | — | 165 | — | 205 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (816 | ) | — | (816 | ) | |||||||||||||
Deferred rent | — | — | (11,882 | ) | — | (11,882 | ) | |||||||||||||
Stock compensation expense | 3,228 | — | — | — | 3,228 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (62,505 | ) | (58,306 | ) | (1,148 | ) | 121,959 | — | ||||||||||||
Investment gains | — | — | (4,040 | ) | — | (4,040 | ) | |||||||||||||
Investment losses | — | — | 1,694 | — | 1,694 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Tenant receivables | — | — | (690 | ) | — | (690 | ) | |||||||||||||
Deferred leasing costs | — | — | (7,572 | ) | — | (7,572 | ) | |||||||||||||
Other assets | (748 | ) | — | (16,567 | ) | — | (17,315 | ) | ||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 13,478 | — | 3,238 | — | 16,716 | |||||||||||||||
Net cash (used in) provided by operating activities | (3,712 | ) | — | 76,971 | — | 73,259 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Additions to properties | — | — | (111,587 | ) | — | (111,587 | ) | |||||||||||||
Purchase of properties | — | — | (42,338 | ) | — | (42,338 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (140 | ) | — | (140 | ) | |||||||||||||
Contributions to unconsolidated real estate entity | — | — | (747 | ) | — | (747 | ) | |||||||||||||
Investments in subsidiaries | (221,513 | ) | (193,863 | ) | (6,338 | ) | 421,714 | — | ||||||||||||
Additions to investments | — | — | (11,905 | ) | — | (11,905 | ) | |||||||||||||
Proceeds from sales of investments | — | — | 3,998 | — | 3,998 | |||||||||||||||
Net cash (used in) provided by investing activities | $ | (221,513 | ) | $ | (193,863 | ) | $ | (169,057 | ) | $ | 421,714 | $ | (162,719 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 51,030 | $ | — | $ | 51,030 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (210,844 | ) | — | (210,844 | ) | |||||||||||||
Principal borrowings from unsecured senior line of credit | 360,000 | — | — | — | 360,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (58,000 | ) | — | — | — | (58,000 | ) | |||||||||||||
Transfer to/from parent company | — | 193,863 | 227,851 | (421,714 | ) | — | ||||||||||||||
Change in restricted cash related to financings | — | — | 1,059 | — | 1,059 | |||||||||||||||
Deferred financing costs paid | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Dividends paid on common stock | (48,715 | ) | — | 1 | — | (48,714 | ) | |||||||||||||
Dividends paid on preferred stock | (6,471 | ) | — | — | — | (6,471 | ) | |||||||||||||
Contributions by noncontrolling interests | — | — | 19,410 | — | 19,410 | |||||||||||||||
Distributions to noncontrolling interests | — | — | (988 | ) | — | (988 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 246,814 | 193,863 | 87,511 | (421,714 | ) | 106,474 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 260 | — | 260 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 21,589 | — | (4,315 | ) | — | 17,274 | ||||||||||||||
Cash and cash equivalents at beginning of period | 14,790 | — | 42,906 | — | 57,696 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 36,379 | $ | — | $ | 38,591 | $ | — | $ | 74,970 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 347 | $ | — | $ | 5,746 | $ | — | $ | 6,093 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Change in accrued capital expenditures | $ | — | $ | — | $ | (6,028 | ) | $ | — | $ | (6,028 | ) | ||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (48,329 | ) | $ | — | $ | (48,329 | ) | ||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | 29,255 | $ | 47,173 | $ | 51,815 | $ | (98,006 | ) | $ | 30,237 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,473 | — | 45,522 | — | 46,995 | |||||||||||||||
Loss on sale of real estate | — | — | 340 | — | 340 | |||||||||||||||
Amortization of loan fees and costs | 1,680 | — | 706 | — | 2,386 | |||||||||||||||
Amortization of debt premiums/discounts | 11 | — | 104 | — | 115 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (830 | ) | — | (830 | ) | |||||||||||||
Deferred rent | — | — | (6,198 | ) | — | (6,198 | ) | |||||||||||||
Stock compensation expense | 3,349 | — | — | — | 3,349 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (49,807 | ) | (47,239 | ) | (960 | ) | 98,006 | — | ||||||||||||
Investment gains | — | (121 | ) | (325 | ) | — | (446 | ) | ||||||||||||
Investment losses | — | 187 | 199 | — | 386 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | 7 | — | 1,499 | — | 1,506 | |||||||||||||||
Tenant receivables | (51 | ) | — | (767 | ) | — | (818 | ) | ||||||||||||
Deferred leasing costs | (350 | ) | — | (11,407 | ) | — | (11,757 | ) | ||||||||||||
Other assets | 29,445 | — | (36,747 | ) | — | (7,302 | ) | |||||||||||||
Intercompany receivables and payables | (21 | ) | — | 21 | — | — | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | (16,301 | ) | — | 5,579 | — | (10,722 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (1,310 | ) | — | 48,551 | — | 47,241 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of properties | 10,796 | — | 69,407 | — | 80,203 | |||||||||||||||
Additions to properties | — | — | (139,245 | ) | — | (139,245 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (17 | ) | — | (17 | ) | |||||||||||||
Contributions to unconsolidated real estate entity | — | — | (2,074 | ) | — | (2,074 | ) | |||||||||||||
Investments in subsidiaries | (14,842 | ) | (30,986 | ) | — | 45,828 | — | |||||||||||||
Additions to investments | — | (3 | ) | (10,360 | ) | — | (10,363 | ) | ||||||||||||
Proceeds from sales of investments | — | 252 | 1,720 | — | 1,972 | |||||||||||||||
Net cash (used in) provided by investing activities | $ | (4,046 | ) | $ | (30,737 | ) | $ | (80,569 | ) | $ | 45,828 | $ | (69,524 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | — | $ | — | $ | 17,215 | $ | — | $ | 17,215 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (2,749 | ) | — | (2,749 | ) | |||||||||||||
Principal borrowings from unsecured senior line of credit | 179,000 | — | — | — | 179,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (191,000 | ) | — | — | — | (191,000 | ) | |||||||||||||
Transfer to/from parent company | — | 28,823 | 17,005 | (45,828 | ) | — | ||||||||||||||
Change in restricted cash related to financings | — | — | 8,656 | — | 8,656 | |||||||||||||||
Deferred financing costs paid | (41 | ) | — | (5 | ) | — | (46 | ) | ||||||||||||
Dividends paid on common stock | (35,687 | ) | — | — | — | (35,687 | ) | |||||||||||||
Dividends paid on preferred stock | (6,471 | ) | — | — | — | (6,471 | ) | |||||||||||||
Distributions to noncontrolling interests | — | — | (427 | ) | — | (427 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (54,199 | ) | 28,823 | 39,695 | (45,828 | ) | (31,509 | ) | ||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (178 | ) | — | (178 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (59,555 | ) | (1,914 | ) | 7,499 | — | (53,970 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 98,567 | 1,914 | 40,490 | — | 140,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 39,012 | $ | — | $ | 47,989 | $ | — | $ | 87,001 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 3,735 | $ | — | $ | 6,229 | $ | — | $ | 9,964 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Note receivable from sale of real estate | $ | 29,820 | $ | — | $ | 9,000 | $ | — | $ | 38,820 | ||||||||||
Change in accrued capital expenditures | $ | — | $ | — | $ | (37,045 | ) | $ | — | $ | (37,045 | ) | ||||||||
Basis_of_presentation_Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
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, 2014. 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, 2013. | |
The accompanying consolidated financial statements include the accounts of Alexandria Real Estate Equities, Inc. and its consolidated 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 real estate 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 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. Costs related to the acquisition of businesses, including real estate acquired with in-place leases, are expensed as incurred. | |
The values allocated to buildings and building improvements, land improvements, tenant improvements, and equipment are depreciated on a straight-line basis using the shorter of the term of the respective ground lease and up to 40 years for buildings and building improvements, an estimated life of 20 years for land improvements, the respective lease term for tenant improvements, and the estimated useful life for equipment. 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, predevelopment, or construction of a project. Capitalization of development, redevelopment, predevelopment, and construction costs is required while activities are ongoing to prepare an asset for its intended use. Fluctuations in our development, redevelopment, predevelopment, 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, predevelopment, or construction activities 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: (i) management, having the authority to approve the action, commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary; (iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; (iv) the sale of the property is probable and is expected to be completed within one year; (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) 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,” and if (i) the operations and cash flows of the property have been or will be eliminated from the ongoing operations, and (ii) 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 development, construction in progress, and intangibles, are individually evaluated for impairment when conditions exist that may indicate that the amount of a long-lived asset may not be recoverable. The 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 development, and construction in progress, are assessed by project and include significant fluctuations in estimated net operating income (“NOI”), 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 the “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 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 investments in certain 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 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 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 March 31, 2014, and December 31, 2013, our ownership percentage in the voting stock of each individual entity was less than 10%. | |
We monitor each of our equity investments throughout the year for new developments, including operating results, results of clinical trials, capital-raising events, and merger and acquisition activities. 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, but are not limited to, 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 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 2009 through 2013. | |
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 may 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. | |
Monitoring client tenant credit quality | ' |
Monitoring client tenant credit quality | |
During the term of each lease, we monitor the credit quality of our client tenants by (i) reviewing the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the client tenants that are publicly available or that are required to be delivered to us pursuant to the applicable lease, (iii) monitoring news reports regarding our client tenants and their respective businesses, and (iv) monitoring the timeliness of lease payments. We have a team of employees who, among them, have graduate and undergraduate degrees in biology, chemistry, and industrial biotechnology and experience in the life science industry, as well as in finance. This research team is responsible for assessing and monitoring the credit quality of our client tenants and any material changes in credit quality. | |
Interest income | ' |
Interest income | |
Interest income was $0.9 million and $1.3 million during the three months ended March 31, 2014 and 2013, respectively. Interest income is included in other income in the accompanying consolidated statements of income. | |
Impact of recently issued accounting standards | ' |
Impact of recently issued accounting standards | |
In April 2014, the FASB issued an Accounting Standards Update (“ASU”) on the reporting of discontinued operations, which raises the threshold for disposals to qualify as discontinued operations. Under this ASU, a discontinued operation is (i) a component of an entity or group of components that has been disposed of by sale, that has been disposed of other than by sale, or that is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. A strategic shift that has or will have a major effect on an entity’s operations and financial results could include the disposal of (i) a major line of business, (ii) a major geographic area, (iii) a major equity method investment, or (iv) other major parts of an entity. Under current GAAP, an entity is prohibited from reporting a discontinued operation if it has certain continuing cash flows or involvement with the component after the disposal. This ASU eliminates these criteria and is effective for public companies during the interim and annual periods, beginning after December 15, 2014. We are required to adopt this ASU no later than January 1, 2015. We expect the adoption of this ASU to result in fewer real estate sales qualifying for classification as discontinued operations in our consolidated results and related disclosures. |
Background_Tables
Background (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Schedule of rentable square feet by property | ' | |||
Our asset base contains 185 properties approximating 17.7 million rentable square feet (“RSF”), consisting of the following, as of March 31, 2014: | ||||
RSF | ||||
Operating properties | 15,670,993 | |||
Development properties | 1,823,713 | |||
Redevelopment properties | 221,225 | |||
Total | 17,715,931 | |||
Investments_in_real_estate_net1
Investments in real estate, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Real Estate [Abstract] | ' | ||||||||
Investments in real estate | ' | ||||||||
Our investments in real estate, net, consisted of the following as of March 31, 2014, and December 31, 2013 (in thousands): | |||||||||
31-Mar-14 | 31-Dec-13 | ||||||||
Rental properties: | |||||||||
Land (related to rental properties) | $ | 567,232 | $ | 553,388 | |||||
Buildings and building improvements | 5,787,040 | 5,714,673 | |||||||
Other improvements | 191,276 | 174,147 | |||||||
Rental properties | 6,545,548 | 6,442,208 | |||||||
Less: accumulated depreciation | (992,818 | ) | (952,106 | ) | |||||
Rental properties, net | 5,552,730 | 5,490,102 | |||||||
Construction in progress (“CIP”)/current value-creation projects: | |||||||||
Current development in North America | 562,873 | 511,838 | |||||||
Investment in unconsolidated joint venture | 47,390 | (1) | 46,644 | (1) | |||||
Current redevelopment in North America | 34,434 | 8,856 | |||||||
Current development and redevelopment in Asia | 59,540 | 60,928 | |||||||
704,237 | 628,266 | ||||||||
Subtotal | 6,256,967 | 6,118,368 | |||||||
Land/value-creation projects: | |||||||||
Land undergoing predevelopment activities (CIP) in North America | 379,997 | 367,225 | |||||||
Land held for development in North America | 191,875 | 191,127 | |||||||
Land held for development/undergoing predevelopment activities (CIP) in Asia | 78,569 | 77,251 | |||||||
Land subject to sale negotiations | 22,854 | 22,943 | |||||||
673,295 | 658,546 | ||||||||
Investments in real estate, net | $ | 6,930,262 | $ | 6,776,914 | |||||
-1 | Represents our investment under the equity method of accounting in the unconsolidated joint venture development project located at 360 Longwood Avenue. |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Investments [Abstract] | ' | |||||||
Summary of investments | ' | |||||||
The following table summarizes our investments as of March 31, 2014, and December 31, 2013 (in thousands): | ||||||||
31-Mar-14 | 31-Dec-13 | |||||||
“Available-for-sale” marketable equity securities, cost basis | $ | 12,608 | $ | 2,879 | ||||
Unrealized gains | 21,447 | (1) | 2,177 | |||||
Unrealized losses | (1,078 | ) | (587 | ) | ||||
“Available-for-sale” marketable equity securities, at fair value | 32,977 | 4,469 | ||||||
Investments accounted for under cost method | 136,345 | 135,819 | ||||||
Total investments | $ | 169,322 | $ | 140,288 | ||||
-1 | Increase in our investments during the three months ended March 31, 2014, was primarily related to an increase in unrealized gains of approximately $18.8 million related to our investments in publicly traded life science companies. These unrealized gains are a component of our comprehensive income, within our stockholders’ equity, and have not been recognized in the accompanying consolidated statement of income for the three months ended March 31, 2014. | |||||||
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 (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Investment gains | $ | 4,040 | $ | 446 | ||||
Investment losses | (1,694 | ) | (386 | ) | ||||
Investment income | $ | 2,346 | $ | 60 | ||||
Secured_and_unsecured_senior_d1
Secured and unsecured senior debt (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Summary of secured and unsecured debt | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes our secured and unsecured senior debt as of March 31, 2014 (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 | $ | 424,287 | $ | 173,224 | $ | 597,511 | 18.4 | % | 4.98 | % | 3.4 | ||||||||||||||||||||||||||
Unsecured senior notes payable | 1,048,270 | — | 1,048,270 | 32.1 | 4.29 | 8.6 | |||||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | — | 506,000 | 506,000 | 15.6 | 1.25 | 4.8 | |||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | 350,000 | 150,000 | 500,000 | 15.4 | 1.4 | 2.3 | |||||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | 600,000 | — | 600,000 | 18.5 | 2.05 | 4.8 | |||||||||||||||||||||||||||||||
Total/weighted average | $ | 2,422,557 | $ | 829,224 | $ | 3,251,781 | 100 | % | 3.09 | % | 5.4 | ||||||||||||||||||||||||||
Percentage of total debt | 74 | % | 26 | % | 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 and respective principal maturities as of | |||||||||||||||||||||||||||||||||||||
March 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Stated | Weighted Average | Maturity Date(2) | Principal Payments Remaining for the Period Ending December 31, | ||||||||||||||||||||||||||||||||||
Debt | Rate | Interest Rate(1) | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||||||||
Secured notes payable | |||||||||||||||||||||||||||||||||||||
San Diego | 6.05 | % | 4.88 | % | 7/1/14 | (3) | $ | 6,419 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,419 | |||||||||||||||||
San Diego | 5.39 | 4 | 11/1/14 | 7,433 | — | — | — | — | — | 7,433 | |||||||||||||||||||||||||||
Seattle | 6 | 6 | 11/18/14 | 180 | — | — | — | — | — | 180 | |||||||||||||||||||||||||||
Maryland | 5.64 | 4.5 | 6/1/15 | 103 | 5,777 | — | — | — | — | 5,880 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | 1.66 | 7/1/15 | (4) | — | 46,203 | — | — | — | — | 46,203 | ||||||||||||||||||||||||||
Greater Boston, San Francisco Bay Area, and San Diego | 5.73 | 5.73 | 1/1/16 | 1,279 | 1,816 | 75,501 | — | — | — | 78,596 | |||||||||||||||||||||||||||
Greater Boston, San Diego, and Greater New York City | 5.82 | 5.82 | 4/1/16 | 697 | 988 | 29,389 | — | — | — | 31,074 | |||||||||||||||||||||||||||
San Diego | 5.74 | 3 | 4/15/16 | 125 | 175 | 6,916 | — | — | — | 7,216 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | 1.56 | 6/1/16 | (5) | — | — | 6,419 | — | — | — | 6,419 | ||||||||||||||||||||||||||
San Francisco Bay Area | 6.35 | 6.35 | 8/1/16 | 1,851 | 2,652 | 126,715 | — | — | — | 131,218 | |||||||||||||||||||||||||||
Maryland | 2.15 | 2.15 | 1/20/17 | — | — | — | 76,000 | — | — | 76,000 | |||||||||||||||||||||||||||
Greater Boston | L+1.35 | 1.51 | 8/23/17 | (6) | — | — | — | 44,422 | — | — | 44,422 | ||||||||||||||||||||||||||
San Diego, Maryland, and Seattle | 7.75 | 7.75 | 4/1/20 | 1,100 | 1,570 | 1,696 | 1,832 | 1,979 | 106,491 | 114,668 | |||||||||||||||||||||||||||
San Diego | 4.66 | 4.66 | 1/1/23 | 891 | 1,396 | 1,458 | 1,534 | 1,608 | 33,501 | 40,388 | |||||||||||||||||||||||||||
San Francisco Bay Area | 6.5 | 6.5 | 6/1/37 | 17 | 18 | 19 | 20 | 22 | 751 | 847 | |||||||||||||||||||||||||||
Unamortized premiums | 270 | 218 | 60 | — | — | — | 548 | ||||||||||||||||||||||||||||||
Secured notes payable average/subtotal | 5.06 | % | 4.98 | 20,365 | 60,813 | 248,173 | 123,808 | 3,609 | 140,743 | 597,511 | |||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.4 | 7/31/16 | — | — | 500,000 | — | — | — | 500,000 | ||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 2.05 | 1/3/19 | — | — | — | — | — | 600,000 | 600,000 | ||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | L+1.10 | % | (7) | 1.25 | 1/3/19 | — | — | — | — | — | 506,000 | 506,000 | |||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Unamortized discounts | (123 | ) | (170 | ) | (176 | ) | (184 | ) | (192 | ) | (885 | ) | (1,730 | ) | |||||||||||||||||||||||
Unsecured debt average/subtotal | 2.66 | (123 | ) | (170 | ) | 499,824 | (184 | ) | (192 | ) | 2,155,115 | 2,654,270 | |||||||||||||||||||||||||
Average/total | 3.09 | % | $ | 20,242 | $ | 60,643 | $ | 747,997 | $ | 123,624 | $ | 3,417 | $ | 2,295,858 | $ | 3,251,781 | |||||||||||||||||||||
Balloon payments | $ | 13,722 | $ | 51,919 | $ | 743,364 | $ | 120,422 | $ | — | $ | 2,286,611 | $ | 3,216,038 | |||||||||||||||||||||||
Principal amortization | 6,520 | 8,724 | 4,633 | 3,202 | 3,417 | 9,247 | 35,743 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 20,242 | $ | 60,643 | $ | 747,997 | $ | 123,624 | $ | 3,417 | $ | 2,295,858 | $ | 3,251,781 | |||||||||||||||||||||||
Fixed-rate/hedged variable-rate debt | $ | 20,062 | $ | 14,440 | $ | 591,578 | $ | 3,202 | $ | 3,417 | $ | 1,789,858 | $ | 2,422,557 | |||||||||||||||||||||||
Unhedged variable-rate debt | 180 | 46,203 | 156,419 | 120,422 | — | 506,000 | 829,224 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 20,242 | $ | 60,643 | $ | 747,997 | $ | 123,624 | $ | 3,417 | $ | 2,295,858 | $ | 3,251,781 | |||||||||||||||||||||||
-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 | Secured note payable was repaid on April 2, 2014. | ||||||||||||||||||||||||||||||||||||
-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 $36.0 million. We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-6 | Secured construction loan with aggregate commitments of $250.4 million. We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-7 | In addition to the stated rate, the unsecured senior line of credit is subject to an annual facility fee of 0.20%. | ||||||||||||||||||||||||||||||||||||
Schedule of interest expense incurred | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes interest expense for the three months ended March 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||
Gross interest | $ | 31,136 | $ | 32,041 | |||||||||||||||||||||||||||||||||
Capitalized interest | (12,013 | ) | (14,021 | ) | |||||||||||||||||||||||||||||||||
Interest expense | $ | 19,123 | $ | 18,020 | |||||||||||||||||||||||||||||||||
Schedule of secured construction loans | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes our secured construction loans as of March 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Market | Stated Rate | Maturity Date | Outstanding Loan Balance | Available Balance | Total Aggregate Commitments | ||||||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | % | 7/1/15 | (1) | $ | 46,203 | $ | 8,797 | $ | 55,000 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | % | 6/1/16 | (2) | 6,419 | 29,581 | 36,000 | ||||||||||||||||||||||||||||||
Greater Boston | L+1.35 | % | 8/23/17 | (3) | 44,422 | 205,978 | 250,400 | ||||||||||||||||||||||||||||||
$ | 97,044 | $ | 244,356 | $ | 341,400 | ||||||||||||||||||||||||||||||||
-1 | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-2 | We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. | ||||||||||||||||||||||||||||||||||||
-3 | We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. |
Interest_rate_swap_agreements_
Interest rate swap agreements (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||
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 March 31, 2014 (dollars in thousands): | |||||||||||||||||||||||||||
Effective Date | Maturity Date | Number of Contracts | Weighted Average Interest Pay | Fair Value as of 3/31/14 | Notional Amount in Effect as of | ||||||||||||||||||||||
Rate (1) | 3/31/14 | 12/31/14 | 12/31/15 | 12/31/16 | |||||||||||||||||||||||
31-Dec-13 | 31-Dec-14 | 2 | 0.98% | $ | (3,090 | ) | $ | 500,000 | $ | — | $ | — | $ | — | |||||||||||||
31-Dec-13 | 31-Mar-15 | 2 | 0.23% | (126 | ) | 250,000 | 250,000 | — | — | ||||||||||||||||||
31-Mar-14 | 31-Mar-15 | 4 | 0.21% | (48 | ) | 200,000 | 200,000 | — | — | ||||||||||||||||||
31-Dec-14 | 31-Mar-16 | 3 | 0.53% | 394 | — | 500,000 | 500,000 | — | |||||||||||||||||||
31-Mar-16 | 31-Mar-17 | 3 | 1.40% | 1,651 | — | — | — | 500,000 | |||||||||||||||||||
Total | $ | (1,219 | ) | $ | 950,000 | $ | 950,000 | $ | 500,000 | $ | 500,000 | ||||||||||||||||
-1 | In addition to the interest pay rate, borrowings outstanding as of March 31, 2014, under our unsecured senior bank term loans include an applicable margin of 1.20% and borrowings outstanding under our unsecured senior line of credit include an applicable margin of 1.10%. |
Fair_value_measurements_Tables
Fair value measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 March 31, 2014, and December 31, 2013 (in thousands): | |||||||||||||||||
31-Mar-14 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | 32,977 | $ | 32,977 | $ | — | $ | — | |||||||||
Interest rate swap agreements | $ | 2,045 | $ | — | $ | 2,045 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,264 | $ | — | $ | 3,264 | $ | — | |||||||||
31-Dec-13 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | $ | 4,469 | $ | 4,469 | $ | — | $ | — | |||||||||
Interest rate swap agreements | $ | 2,870 | $ | — | $ | 2,870 | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 6,191 | $ | — | $ | 6,191 | $ | — | |||||||||
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 March 31, 2014, and December 31, 2013, the book and fair values of our marketable equity 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): | |||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
Marketable equity securities | $ | 32,977 | $ | 32,977 | $ | 4,469 | $ | 4,469 | |||||||||
Interest rate swap agreements | $ | 2,045 | $ | 2,045 | $ | 2,870 | $ | 2,870 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,264 | $ | 3,264 | $ | 6,191 | $ | 6,191 | |||||||||
Secured notes payable | $ | 597,511 | $ | 617,084 | $ | 708,831 | $ | 736,772 | |||||||||
Unsecured senior notes payable | $ | 1,048,270 | $ | 1,053,170 | $ | 1,048,230 | $ | 1,043,125 | |||||||||
Unsecured senior line of credit | $ | 506,000 | $ | 500,860 | $ | 204,000 | $ | 193,714 | |||||||||
Unsecured senior bank term loans | $ | 1,100,000 | $ | 1,099,448 | $ | 1,100,000 | $ | 1,099,897 | |||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 months ended March 31, 2014 and 2013 (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Income from continuing operations | $ | 40,911 | $ | 29,400 | ||||
Net income attributable to noncontrolling interests | (1,195 | ) | (982 | ) | ||||
Dividends on preferred stock | (6,471 | ) | (6,471 | ) | ||||
Net income attributable to unvested restricted stock awards | (374 | ) | (342 | ) | ||||
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted | 32,871 | 21,605 | ||||||
(Loss) income from discontinued operations | (162 | ) | 837 | |||||
Net income attributable to Alexandria’s common stockholders – basic and diluted | $ | 32,709 | $ | 22,442 | ||||
Weighted average shares of common stock outstanding – basic and diluted | 71,073 | 63,161 | ||||||
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ||||||||
Continuing operations | $ | 0.46 | $ | 0.35 | ||||
Discontinued operations | — | 0.01 | ||||||
Earnings per share – basic and diluted | $ | 0.46 | $ | 0.36 | ||||
Net_income_attributable_to_Ale1
Net income attributable to Alexandria Real Estate Equities, Inc. (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Net Income (Loss) Attributable to Parent [Abstract] | ' | |||||||
Net income (loss) attributable to Alexandria Real Estate Equities, Inc. | ' | |||||||
The following table presents income from continuing and discontinued operations attributable to Alexandria Real Estate Equities, Inc. for the three months ended March 31, 2014 and 2013 (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Income from continuing operations | $ | 40,911 | $ | 29,400 | ||||
Less: net income attributable to noncontrolling interests | (1,195 | ) | (982 | ) | ||||
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc. | 39,716 | 28,418 | ||||||
(Loss) income from discontinued operations | (162 | ) | 837 | |||||
Less: net income from discontinued operations attributable to noncontrolling interests | — | — | ||||||
Net income attributable to Alexandria Real Estate Equities, Inc. | $ | 39,554 | $ | 29,255 | ||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc. | ' | |||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc. 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, 2013 | $ | 1,590 | $ | (3,321 | ) | $ | (34,473 | ) | $ | (36,204 | ) | |||||
Other comprehensive income (loss) before reclassifications | 18,779 | 5,592 | (3,106 | ) | 21,265 | |||||||||||
Amounts reclassified from other comprehensive income | — | (3,490 | ) | — | (3,490 | ) | ||||||||||
Net other comprehensive income (loss) | 18,779 | 2,102 | (3,106 | ) | 17,775 | |||||||||||
Balance as of March 31, 2014 | $ | 20,369 | $ | (1,219 | ) | $ | (37,579 | ) | $ | (18,429 | ) | |||||
Discontinued_operations_Tables
Discontinued operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Summary of net assets of discontinued operations and (loss) income from discontinued operations, net | ' | ||||||||
The following is a summary of net assets of discontinued operations and (loss) income from discontinued operations (in thousands): | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Properties “held for sale,” net | $ | 7,653 | $ | 7,644 | |||||
Other assets | 157 | 103 | |||||||
Total assets | 7,810 | 7,747 | |||||||
Total liabilities | (132 | ) | (266 | ) | |||||
Net assets of discontinued operations | $ | 7,678 | $ | 7,481 | |||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Total revenues | $ | — | $ | 3,792 | |||||
Operating expenses | (162 | ) | (1,449 | ) | |||||
Total revenues less operating expenses from discontinued operations | (162 | ) | 2,343 | ||||||
Depreciation expense | — | (1,166 | ) | ||||||
Loss on sale of real estate | — | (340 | ) | ||||||
(Loss) income from discontinued operations (1) | $ | (162 | ) | $ | 837 | ||||
-1 | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale” as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Condensed_consolidating_financ1
Condensed consolidating financial information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
Condensed Consolidated Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed consolidating balance sheet | ' | |||||||||||||||||||
Consolidating Balance Sheet | ||||||||||||||||||||
as of March 31, 2014 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 6,930,262 | $ | — | $ | 6,930,262 | ||||||||||
Cash and cash equivalents | 36,379 | — | 38,591 | — | 74,970 | |||||||||||||||
Restricted cash | 54 | — | 30,400 | — | 30,454 | |||||||||||||||
Tenant receivables | — | — | 10,619 | — | 10,619 | |||||||||||||||
Deferred rent | — | — | 202,087 | — | 202,087 | |||||||||||||||
Deferred leasing and financing costs, net | 35,051 | — | 157,567 | — | 192,618 | |||||||||||||||
Investments | — | 10,868 | 158,454 | — | 169,322 | |||||||||||||||
Investments in and advances to affiliates | 6,601,258 | 6,090,900 | 124,891 | (12,817,049 | ) | — | ||||||||||||||
Other assets | 18,755 | — | 126,952 | — | 145,707 | |||||||||||||||
Total assets | $ | 6,691,497 | $ | 6,101,768 | $ | 7,779,823 | $ | (12,817,049 | ) | $ | 7,756,039 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 597,511 | $ | — | $ | 597,511 | ||||||||||
Unsecured senior notes payable | 1,048,270 | — | — | — | 1,048,270 | |||||||||||||||
Unsecured senior line of credit | 506,000 | — | — | — | 506,000 | |||||||||||||||
Unsecured senior bank term loans | 1,100,000 | — | — | — | 1,100,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 58,921 | — | 384,972 | — | 443,893 | |||||||||||||||
Dividends payable | 55,570 | — | 290 | — | 55,860 | |||||||||||||||
Total liabilities | 2,768,761 | — | 982,773 | — | 3,751,534 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,413 | — | 14,413 | |||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,922,736 | 6,101,768 | 6,715,281 | (12,817,049 | ) | 3,922,736 | ||||||||||||||
Noncontrolling interests | — | — | 67,356 | — | 67,356 | |||||||||||||||
Total equity | 3,922,736 | 6,101,768 | 6,782,637 | (12,817,049 | ) | 3,990,092 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,691,497 | $ | 6,101,768 | $ | 7,779,823 | $ | (12,817,049 | ) | $ | 7,756,039 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of December 31, 2013 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 6,776,914 | $ | — | $ | 6,776,914 | ||||||||||
Cash and cash equivalents | 14,790 | — | 42,906 | — | 57,696 | |||||||||||||||
Restricted cash | 55 | — | 27,654 | — | 27,709 | |||||||||||||||
Tenant receivables | — | — | 9,918 | — | 9,918 | |||||||||||||||
Deferred rent | — | — | 190,425 | — | 190,425 | |||||||||||||||
Deferred leasing and financing costs, net | 36,901 | — | 155,757 | — | 192,658 | |||||||||||||||
Investments | — | 10,868 | 129,420 | — | 140,288 | |||||||||||||||
Investments in and advances to affiliates | 6,299,551 | 5,823,058 | 119,421 | (12,242,030 | ) | — | ||||||||||||||
Other assets | 20,226 | — | 113,930 | — | 134,156 | |||||||||||||||
Total assets | $ | 6,371,523 | $ | 5,833,926 | $ | 7,566,345 | $ | (12,242,030 | ) | $ | 7,529,764 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 708,831 | $ | — | $ | 708,831 | ||||||||||
Unsecured senior notes payable | 1,048,230 | — | — | — | 1,048,230 | |||||||||||||||
Unsecured senior line of credit | 204,000 | — | — | — | 204,000 | |||||||||||||||
Unsecured senior bank term loans | 1,100,000 | — | — | — | 1,100,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 48,373 | — | 386,969 | — | 435,342 | |||||||||||||||
Dividends payable | 54,131 | — | 289 | — | 54,420 | |||||||||||||||
Total liabilities | 2,454,734 | — | 1,096,089 | — | 3,550,823 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,444 | — | 14,444 | |||||||||||||||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,916,789 | 5,833,926 | 6,408,104 | (12,242,030 | ) | 3,916,789 | ||||||||||||||
Noncontrolling interests | — | — | 47,708 | — | 47,708 | |||||||||||||||
Total equity | 3,916,789 | 5,833,926 | 6,455,812 | (12,242,030 | ) | 3,964,497 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,371,523 | $ | 5,833,926 | $ | 7,566,345 | $ | (12,242,030 | ) | $ | 7,529,764 | |||||||||
Condensed consolidating statements of income | ' | |||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 130,570 | $ | — | $ | 130,570 | ||||||||||
Tenant recoveries | — | — | 41,682 | — | 41,682 | |||||||||||||||
Other income | 2,919 | — | 4,633 | (3,618 | ) | 3,934 | ||||||||||||||
Total revenues | 2,919 | — | 176,885 | (3,618 | ) | 176,186 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 52,507 | — | 52,507 | |||||||||||||||
General and administrative | 10,860 | — | 5,982 | (3,618 | ) | 13,224 | ||||||||||||||
Interest | 13,539 | — | 5,584 | — | 19,123 | |||||||||||||||
Depreciation and amortization | 1,471 | — | 48,950 | — | 50,421 | |||||||||||||||
Total expenses | 25,870 | — | 113,023 | (3,618 | ) | 135,275 | ||||||||||||||
(Loss) income from continuing operations before equity in earnings of affiliates | (22,951 | ) | — | 63,862 | — | 40,911 | ||||||||||||||
Equity in earnings of affiliates | 62,505 | 58,306 | 1,148 | (121,959 | ) | — | ||||||||||||||
Income from continuing operations | 39,554 | 58,306 | 65,010 | (121,959 | ) | 40,911 | ||||||||||||||
Loss from discontinued operations | — | — | (162 | ) | — | (162 | ) | |||||||||||||
Net income | 39,554 | 58,306 | 64,848 | (121,959 | ) | 40,749 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 1,195 | — | 1,195 | |||||||||||||||
Dividends on preferred stock | 6,471 | — | — | — | 6,471 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 374 | — | — | — | 374 | |||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 32,709 | $ | 58,306 | $ | 63,653 | $ | (121,959 | ) | $ | 32,709 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | — | $ | — | $ | 111,526 | $ | — | $ | 111,526 | ||||||||||
Tenant recoveries | — | — | 35,565 | — | 35,565 | |||||||||||||||
Other income | 2,595 | (66 | ) | 3,571 | (3,108 | ) | 2,992 | |||||||||||||
Total revenues | 2,595 | (66 | ) | 150,662 | (3,108 | ) | 150,083 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 45,186 | — | 45,186 | |||||||||||||||
General and administrative | 10,269 | — | 4,487 | (3,108 | ) | 11,648 | ||||||||||||||
Interest | 11,720 | — | 6,300 | — | 18,020 | |||||||||||||||
Depreciation and amortization | 1,475 | — | 44,354 | — | 45,829 | |||||||||||||||
Total expenses | 23,464 | — | 100,327 | (3,108 | ) | 120,683 | ||||||||||||||
(Loss) income from continuing operations before equity in earnings of affiliates | (20,869 | ) | (66 | ) | 50,335 | — | 29,400 | |||||||||||||
Equity in earnings of affiliates | 49,807 | 47,239 | 960 | (98,006 | ) | — | ||||||||||||||
Income from continuing operations | 28,938 | 47,173 | 51,295 | (98,006 | ) | 29,400 | ||||||||||||||
Income from discontinued operations | 317 | — | 520 | — | 837 | |||||||||||||||
Net income | 29,255 | 47,173 | 51,815 | (98,006 | ) | 30,237 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | 982 | — | 982 | |||||||||||||||
Dividends on preferred stock | 6,471 | — | — | — | 6,471 | |||||||||||||||
Net income attributable to unvested restricted stock awards | 342 | — | — | — | 342 | |||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 22,442 | $ | 47,173 | $ | 50,833 | $ | (98,006 | ) | $ | 22,442 | |||||||||
Condensed consolidating statement comprehensive income | ' | |||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | 39,554 | $ | 58,306 | $ | 64,848 | $ | (121,959 | ) | $ | 40,749 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains on marketable securities: | ||||||||||||||||||||
Unrealized holding gains arising during the period | — | — | 18,779 | — | 18,779 | |||||||||||||||
Reclassification adjustment for losses included in net income | — | — | — | — | — | |||||||||||||||
Unrealized gains on marketable securities | — | — | 18,779 | — | 18,779 | |||||||||||||||
Unrealized gains on interest rate swap agreements: | ||||||||||||||||||||
Unrealized interest rate swap gains arising during the period | 5,592 | — | — | — | 5,592 | |||||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | (3,490 | ) | — | — | — | (3,490 | ) | |||||||||||||
Unrealized gains on interest rate swap agreements | 2,102 | — | — | — | 2,102 | |||||||||||||||
Foreign currency translation losses | — | — | (3,106 | ) | — | (3,106 | ) | |||||||||||||
Total other comprehensive income | 2,102 | — | 15,673 | — | 17,775 | |||||||||||||||
Comprehensive income | 41,656 | 58,306 | 80,521 | (121,959 | ) | 58,524 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (1,195 | ) | — | (1,195 | ) | |||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 41,656 | $ | 58,306 | $ | 79,326 | $ | (121,959 | ) | $ | 57,329 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | 29,255 | $ | 47,173 | $ | 51,815 | $ | (98,006 | ) | $ | 30,237 | |||||||||
Other comprehensive income: | ||||||||||||||||||||
Unrealized gains on marketable securities: | ||||||||||||||||||||
Unrealized holding (losses) gains arising during the period | — | (8 | ) | 324 | — | 316 | ||||||||||||||
Reclassification adjustment for losses (gains) included in net income | — | 38 | (310 | ) | — | (272 | ) | |||||||||||||
Unrealized gains on marketable securities | — | 30 | 14 | — | 44 | |||||||||||||||
Unrealized gains on interest rate swap agreements: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (133 | ) | — | — | — | (133 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 4,308 | — | — | — | 4,308 | |||||||||||||||
Unrealized gains on interest rate swap agreements | 4,175 | — | — | — | 4,175 | |||||||||||||||
Foreign currency translation losses | — | — | (2,360 | ) | — | (2,360 | ) | |||||||||||||
Total other comprehensive income (loss) | 4,175 | 30 | (2,346 | ) | — | 1,859 | ||||||||||||||
Comprehensive income | 33,430 | 47,203 | 49,469 | (98,006 | ) | 32,096 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (898 | ) | — | (898 | ) | |||||||||||||
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ | 33,430 | $ | 47,203 | $ | 48,571 | $ | (98,006 | ) | $ | 31,198 | |||||||||
Condensed consolidating statement cash flows | ' | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | 39,554 | $ | 58,306 | $ | 64,848 | $ | (121,959 | ) | $ | 40,749 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,471 | — | 48,950 | — | 50,421 | |||||||||||||||
Amortization of loan fees and costs | 1,770 | — | 791 | — | 2,561 | |||||||||||||||
Amortization of debt premiums/discounts | 40 | — | 165 | — | 205 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (816 | ) | — | (816 | ) | |||||||||||||
Deferred rent | — | — | (11,882 | ) | — | (11,882 | ) | |||||||||||||
Stock compensation expense | 3,228 | — | — | — | 3,228 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (62,505 | ) | (58,306 | ) | (1,148 | ) | 121,959 | — | ||||||||||||
Investment gains | — | — | (4,040 | ) | — | (4,040 | ) | |||||||||||||
Investment losses | — | — | 1,694 | — | 1,694 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Tenant receivables | — | — | (690 | ) | — | (690 | ) | |||||||||||||
Deferred leasing costs | — | — | (7,572 | ) | — | (7,572 | ) | |||||||||||||
Other assets | (748 | ) | — | (16,567 | ) | — | (17,315 | ) | ||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 13,478 | — | 3,238 | — | 16,716 | |||||||||||||||
Net cash (used in) provided by operating activities | (3,712 | ) | — | 76,971 | — | 73,259 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Additions to properties | — | — | (111,587 | ) | — | (111,587 | ) | |||||||||||||
Purchase of properties | — | — | (42,338 | ) | — | (42,338 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (140 | ) | — | (140 | ) | |||||||||||||
Contributions to unconsolidated real estate entity | — | — | (747 | ) | — | (747 | ) | |||||||||||||
Investments in subsidiaries | (221,513 | ) | (193,863 | ) | (6,338 | ) | 421,714 | — | ||||||||||||
Additions to investments | — | — | (11,905 | ) | — | (11,905 | ) | |||||||||||||
Proceeds from sales of investments | — | — | 3,998 | — | 3,998 | |||||||||||||||
Net cash (used in) provided by investing activities | $ | (221,513 | ) | $ | (193,863 | ) | $ | (169,057 | ) | $ | 421,714 | $ | (162,719 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Three Months Ended March 31, 2014 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 51,030 | $ | — | $ | 51,030 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (210,844 | ) | — | (210,844 | ) | |||||||||||||
Principal borrowings from unsecured senior line of credit | 360,000 | — | — | — | 360,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (58,000 | ) | — | — | — | (58,000 | ) | |||||||||||||
Transfer to/from parent company | — | 193,863 | 227,851 | (421,714 | ) | — | ||||||||||||||
Change in restricted cash related to financings | — | — | 1,059 | — | 1,059 | |||||||||||||||
Deferred financing costs paid | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Dividends paid on common stock | (48,715 | ) | — | 1 | — | (48,714 | ) | |||||||||||||
Dividends paid on preferred stock | (6,471 | ) | — | — | — | (6,471 | ) | |||||||||||||
Contributions by noncontrolling interests | — | — | 19,410 | — | 19,410 | |||||||||||||||
Distributions to noncontrolling interests | — | — | (988 | ) | — | (988 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 246,814 | 193,863 | 87,511 | (421,714 | ) | 106,474 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 260 | — | 260 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 21,589 | — | (4,315 | ) | — | 17,274 | ||||||||||||||
Cash and cash equivalents at beginning of period | 14,790 | — | 42,906 | — | 57,696 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 36,379 | $ | — | $ | 38,591 | $ | — | $ | 74,970 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 347 | $ | — | $ | 5,746 | $ | — | $ | 6,093 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Change in accrued capital expenditures | $ | — | $ | — | $ | (6,028 | ) | $ | — | $ | (6,028 | ) | ||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (48,329 | ) | $ | — | $ | (48,329 | ) | ||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | 29,255 | $ | 47,173 | $ | 51,815 | $ | (98,006 | ) | $ | 30,237 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,473 | — | 45,522 | — | 46,995 | |||||||||||||||
Loss on sale of real estate | — | — | 340 | — | 340 | |||||||||||||||
Amortization of loan fees and costs | 1,680 | — | 706 | — | 2,386 | |||||||||||||||
Amortization of debt premiums/discounts | 11 | — | 104 | — | 115 | |||||||||||||||
Amortization of acquired above and below market leases | — | — | (830 | ) | — | (830 | ) | |||||||||||||
Deferred rent | — | — | (6,198 | ) | — | (6,198 | ) | |||||||||||||
Stock compensation expense | 3,349 | — | — | — | 3,349 | |||||||||||||||
Equity in (income) loss related to subsidiaries | (49,807 | ) | (47,239 | ) | (960 | ) | 98,006 | — | ||||||||||||
Investment gains | — | (121 | ) | (325 | ) | — | (446 | ) | ||||||||||||
Investment losses | — | 187 | 199 | — | 386 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | 7 | — | 1,499 | — | 1,506 | |||||||||||||||
Tenant receivables | (51 | ) | — | (767 | ) | — | (818 | ) | ||||||||||||
Deferred leasing costs | (350 | ) | — | (11,407 | ) | — | (11,757 | ) | ||||||||||||
Other assets | 29,445 | — | (36,747 | ) | — | (7,302 | ) | |||||||||||||
Intercompany receivables and payables | (21 | ) | — | 21 | — | — | ||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | (16,301 | ) | — | 5,579 | — | (10,722 | ) | |||||||||||||
Net cash (used in) provided by operating activities | (1,310 | ) | — | 48,551 | — | 47,241 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of properties | 10,796 | — | 69,407 | — | 80,203 | |||||||||||||||
Additions to properties | — | — | (139,245 | ) | — | (139,245 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (17 | ) | — | (17 | ) | |||||||||||||
Contributions to unconsolidated real estate entity | — | — | (2,074 | ) | — | (2,074 | ) | |||||||||||||
Investments in subsidiaries | (14,842 | ) | (30,986 | ) | — | 45,828 | — | |||||||||||||
Additions to investments | — | (3 | ) | (10,360 | ) | — | (10,363 | ) | ||||||||||||
Proceeds from sales of investments | — | 252 | 1,720 | — | 1,972 | |||||||||||||||
Net cash (used in) provided by investing activities | $ | (4,046 | ) | $ | (30,737 | ) | $ | (80,569 | ) | $ | 45,828 | $ | (69,524 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Three Months Ended March 31, 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 | $ | — | $ | — | $ | 17,215 | $ | — | $ | 17,215 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (2,749 | ) | — | (2,749 | ) | |||||||||||||
Principal borrowings from unsecured senior line of credit | 179,000 | — | — | — | 179,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (191,000 | ) | — | — | — | (191,000 | ) | |||||||||||||
Transfer to/from parent company | — | 28,823 | 17,005 | (45,828 | ) | — | ||||||||||||||
Change in restricted cash related to financings | — | — | 8,656 | — | 8,656 | |||||||||||||||
Deferred financing costs paid | (41 | ) | — | (5 | ) | — | (46 | ) | ||||||||||||
Dividends paid on common stock | (35,687 | ) | — | — | — | (35,687 | ) | |||||||||||||
Dividends paid on preferred stock | (6,471 | ) | — | — | — | (6,471 | ) | |||||||||||||
Distributions to noncontrolling interests | — | — | (427 | ) | — | (427 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (54,199 | ) | 28,823 | 39,695 | (45,828 | ) | (31,509 | ) | ||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | (178 | ) | — | (178 | ) | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (59,555 | ) | (1,914 | ) | 7,499 | — | (53,970 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 98,567 | 1,914 | 40,490 | — | 140,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 39,012 | $ | — | $ | 47,989 | $ | — | $ | 87,001 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 3,735 | $ | — | $ | 6,229 | $ | — | $ | 9,964 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Note receivable from sale of real estate | $ | 29,820 | $ | — | $ | 9,000 | $ | — | $ | 38,820 | ||||||||||
Change in accrued capital expenditures | $ | — | $ | — | $ | (37,045 | ) | $ | — | $ | (37,045 | ) | ||||||||
Background_Details
Background (Details) (USD $) | 3 Months Ended |
In Billions, unless otherwise specified | Mar. 31, 2014 |
property | |
sqft | |
Nature of Business [Line Items] | ' |
Total Market Capitalization | $9 |
Total Rentable Square Footage of Asset Base | 31,239,652 |
Total rentable area (in square feet) | 17,715,931 |
Square Footage of Real Estate Property, Future Development | 13,523,721 |
Number of properties | 185 |
Investment-grade client tenants as a percentage of total annualized base rent | 52.00% |
Percentage of leases which are triple net leases | 94.00% |
Percentage of leases containing effective annual rent escalations | 95.00% |
Percentage of leases providing for recapture of certain capital expenditures | 92.00% |
Minimum | ' |
Nature of Business [Line Items] | ' |
Effective annual rent escalations (as a percent) | 3.00% |
Maximum | ' |
Nature of Business [Line Items] | ' |
Effective annual rent escalations (as a percent) | 3.50% |
Background_Schedule_of_rentabl
Background Schedule of rentable square feet (Details) | Mar. 31, 2014 |
sqft | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Operating properties | 15,670,993 |
Development properties | 1,823,713 |
Redevelopment properties | 221,225 |
Total | 17,715,931 |
Basis_of_presentation_Details
Basis of presentation (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Basis of presentation | ' | ' | ' |
Maximum expected period of sale of property (in years) | '1 year | ' | ' |
Cost method investment ownership percentage | 10.00% | ' | 10.00% |
The Company generally distributes this percentage or more of its taxable income | 100.00% | ' | ' |
Minimum percentage of taxable income to be distributed | 100.00% | ' | ' |
Provision for federal income taxes | $0 | ' | ' |
Allowance for estimated losses | 0 | ' | 0 |
Interest income included in other income | $900,000 | $1,300,000 | ' |
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 | ' | ' |
Investments_in_real_estate_net2
Investments in real estate, net Schedule of investment in real estates (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Real Estate Properties [Line Items] | ' | ' | ||
Land (related to rental properties) | $567,232 | $553,388 | ||
Buildings and building improvements | 5,787,040 | 5,714,673 | ||
Other improvements | 191,276 | 174,147 | ||
Rental properties | 6,545,548 | 6,442,208 | ||
Less: accumulated depreciation | -992,818 | -952,106 | ||
Rental properties, net | 5,552,730 | 5,490,102 | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Investments in real estate, net | 6,930,262 | 6,776,914 | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Development in process | 704,237 | 628,266 | ||
Active development in North America | North America | ' | ' | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Development in process | 562,873 | 511,838 | ||
Investment in unconsolidated joint venture | North America | ' | ' | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Development in process | 47,390 | [1] | 46,644 | [1] |
Active redevelopment in North America | North America | ' | ' | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Development in process | 34,434 | 8,856 | ||
Active development and redevelopment in Asia | Asia | ' | ' | ||
Construction in progress ("CIP")/current value-added projects: | ' | ' | ||
Development in process | 59,540 | 60,928 | ||
Land/future value-added projects: | ' | ' | ||
Land/future value-added projects: | ' | ' | ||
Land available for development | 673,295 | 658,546 | ||
Land undergoing predevelopment activities (CIP) in North America (2) | North America | ' | ' | ||
Land/future value-added projects: | ' | ' | ||
Land available for development | 379,997 | 367,225 | ||
Land held for future development in North America | North America | ' | ' | ||
Land/future value-added projects: | ' | ' | ||
Land available for development | 191,875 | 191,127 | ||
Land held for future development/undergoing predevelopment activities (CIP) in Asia | Asia | ' | ' | ||
Land/future value-added projects: | ' | ' | ||
Land available for development | 78,569 | 77,251 | ||
Land subject to sale negotiations | ' | ' | ||
Land/future value-added projects: | ' | ' | ||
Land available for development | 22,854 | 22,943 | ||
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 | $6,256,967 | $6,118,368 | ||
[1] | Represents our investment under the equity method of accounting in the unconsolidated joint venture development project located at 360 Longwood Avenue. |
Investments_in_real_estate_net3
Investments in real estate, net Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 27, 2014 | Jan. 30, 2014 | Mar. 17, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Greater Boston, Massachusetts | San Diego, California | San Diego, California | Secured Debt Maturing on January 2023 | Secured Debt Maturing On 15 April 2016 | |||
225 Second Avenue | 3545 Cray Court | 4025/4031/4045 Sorrento Valley Boulevard | San Diego, California | ||||
sqft | sqft | property | 3545 Cray Court | ||||
sqft | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Area of real estate property | ' | ' | 112,500 | 116,556 | 42,566 | ' | ' |
Payments to acquire real estate property | ' | ' | $16,300,000 | $64,000,000 | $12,400,000 | ' | ' |
Average percentage of occupied properties | ' | ' | ' | 100.00% | 100.00% | ' | ' |
Assumption of secured notes payable in connection with purchase of properties | ($48,329,000) | $0 | ' | $40,700,000 | $7,600,000 | ' | ' |
Number of real estate properties | ' | ' | ' | ' | 3 | ' | ' |
Stated interest rate (as a percent) | ' | ' | ' | ' | ' | 4.66% | 5.74% |
Investments_in_real_estate_net4
Investments in real estate, net Development and redevelopment projects (Details) | Mar. 31, 2014 |
sqft | |
property | |
Development | ' |
Real Estate Properties [Line Items] | ' |
Number of real estate properties | 5 |
Area of real estate property | 1,358,257 |
Redevelopment | ' |
Real Estate Properties [Line Items] | ' |
Number of real estate properties | 3 |
Area of real estate property | 221,225 |
Investments_in_real_estate_net5
Investments in real estate, net Investment in unconsolidated entity (Details) (Greater Boston market, Equity Method Investee, USD $) | Mar. 31, 2014 |
In Millions, unless otherwise specified | sqft |
Greater Boston market | Equity Method Investee | ' |
Schedule of Equity Method Investments [Line Items] | ' |
Equity interest percentage (in percent) | 27.50% |
Area of real estate property | 413,536 |
Equity method investments amount | $47.40 |
Investments_in_real_estate_net6
Investments in real estate, net Land undergoing predevelopment and future development (Details) | Mar. 31, 2014 |
Transaction | |
Real Estate Properties [Line Items] | ' |
Number of construction or preconstruction activities | 0 |
North America | ' |
Real Estate Properties [Line Items] | ' |
Square feet undergoing preconstruction activities (in square feet) | 2,700,000 |
Square feet of developable property (in square feet) | 3,100,000 |
Alexandria Centerâ„¢ at Kendall Square | ' |
Real Estate Properties [Line Items] | ' |
Square feet undergoing preconstruction activities (in square feet) | 1,200,000 |
Preconstruction Prior to Vertical Construction | 50 and 100 Binney Street | ' |
Real Estate Properties [Line Items] | ' |
Area of real estate property | 1,200,000 |
Investments_Summary_of_Investm
Investments Summary of Investments (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | |
Investments [Abstract] | ' | ' | |
“Available-for-sale†marketable equity securities, cost basis | $12,608 | $2,879 | |
Unrealized gains | 21,447 | [1] | 2,177 |
Unrealized losses | -1,078 | -587 | |
“Available-for-sale†marketable equity securities, at fair value | 32,977 | 4,469 | |
Investments accounted for under cost method | 136,345 | 135,819 | |
Total investments | 169,322 | 140,288 | |
Available-for-sale Securities, Unrealized Gains | $18,800 | [1] | ' |
[1] | Increase in our investments during the three months ended March 31, 2014, was primarily related to an increase in unrealized gains of approximately $18.8 million related to our investments in publicly traded life science companies. These unrealized gains are a component of our comprehensive income, within our stockholders’ equity, and have not been recognized in the accompanying consolidated statement of income for the three months ended March 31, 2014. |
Investments_Investment_Income_
Investments Investment Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Investments [Abstract] | ' | ' |
Gain on Sale of Investments | $4,040 | $446 |
Investment losses | -1,694 | -386 |
Investment income | $2,346 | $60 |
Secured_and_unsecured_senior_d2
Secured and unsecured senior debt Narratives (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
Greater Boston market | Alexandria Technology Square | Construction Loans | Construction Loans | |||
Equity Method Investee | Secured Debt from Insurance Company Maturing on 1 April 2014 | Greater Boston market | ||||
Equity Method Investee | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Outstanding Loan Balance | ' | ' | ' | $208,700,000 | $97,044,000 | ' |
Contributions by noncontrolling interests | 19,410,000 | 0 | ' | 20,900,000 | ' | ' |
Equity interest percentage (in percent) | ' | ' | 27.50% | ' | ' | ' |
Total Aggregate Commitments | ' | ' | ' | ' | ' | 213,200,000 |
Drawn and outstanding construction loan | ' | ' | ' | ' | ' | $107,000,000 |
Secured_and_unsecured_senior_d3
Secured and unsecured senior debt Schedule of secured and unsecured senior debts (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | $2,422,557 | |
Unhedged Variable rate | 829,224 | |
Total Consolidated | 3,251,781 | |
Percentage of Total | 100.00% | |
Total consolidated debt, Effective Interest | 3.09% | [1] |
Weighted Average Interest Rate at End of Period | 2.66% | [1] |
Weighted Average Remaining Terms (in years) | '5 years 4 months 18 days | |
Percentage of fixed rate/hedged total debt | 74.00% | |
Percentage of unhedged floating rate total debt | 26.00% | |
Secured notes payable | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 424,287 | |
Unhedged Variable rate | 173,224 | |
Total Consolidated | 597,511 | |
Percentage of Total | 18.40% | |
Weighted Average Interest Rate at End of Period | 4.98% | [1] |
Weighted Average Remaining Terms (in years) | '3 years 4 months 12 days | |
Senior Notes | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 1,048,270 | |
Unhedged Variable rate | 0 | |
Total Consolidated | 1,048,270 | |
Percentage of Total | 32.10% | |
Weighted Average Interest Rate at End of Period | 4.29% | [1] |
Weighted Average Remaining Terms (in years) | '8 years 7 months 6 days | |
$1.5 billion unsecured senior line of credit | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 0 | |
Unhedged Variable rate | 506,000 | |
Total Consolidated | 506,000 | |
Percentage of Total | 15.60% | |
Weighted Average Interest Rate at End of Period | 1.25% | [1] |
Weighted Average Remaining Terms (in years) | '4 years 9 months | |
2016 Unsecured Senior Bank Term Loan | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 350,000 | |
Unhedged Variable rate | 150,000 | |
Total Consolidated | 500,000 | |
Percentage of Total | 15.40% | |
Weighted Average Interest Rate at End of Period | 1.40% | [1] |
Weighted Average Remaining Terms (in years) | '2 years 3 months 6 days | |
2019 Unsecured Senior Bank Term Loan | ' | |
Debt Instrument [Line Items] | ' | |
Fixed Rate/Hedged Variable Rate | 600,000 | |
Unhedged Variable rate | 0 | |
Total Consolidated | $600,000 | |
Percentage of Total | 18.50% | |
Weighted Average Interest Rate at End of Period | 2.05% | [1] |
Weighted Average Remaining Terms (in years) | '4 years 9 months | |
[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 $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | $2,422,557 | |
Unhedged Variable rate | 829,224 | |
Principal amount | 3,251,781 | |
Effective rate (as a percent) | 2.66% | [1] |
Future principal payments due on secured and unsecured debt | ' | |
Total consolidated debt, Effective Interest | 3.09% | [1] |
Balloon payments | 3,216,038 | |
Principal amortization | 35,743 | |
2014 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 20,062 | |
Unhedged Variable rate | 180 | |
Principal amount | 20,242 | |
Future principal payments due on secured and unsecured debt | ' | |
Balloon payments | 13,722 | |
Principal amortization | 6,520 | |
2015 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 14,440 | |
Unhedged Variable rate | 46,203 | |
Principal amount | 60,643 | |
Future principal payments due on secured and unsecured debt | ' | |
Balloon payments | 51,919 | |
Principal amortization | 8,724 | |
2016 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 591,578 | |
Unhedged Variable rate | 156,419 | |
Principal amount | 747,997 | |
Future principal payments due on secured and unsecured debt | ' | |
Balloon payments | 743,364 | |
Principal amortization | 4,633 | |
2017 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 3,202 | |
Unhedged Variable rate | 120,422 | |
Principal amount | 123,624 | |
Future principal payments due on secured and unsecured debt | ' | |
Balloon payments | 120,422 | |
Principal amortization | 3,202 | |
2018 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 3,417 | |
Unhedged Variable rate | 0 | |
Principal amount | 3,417 | |
Future principal payments due on secured and unsecured debt | ' | |
Balloon payments | 0 | |
Principal amortization | 3,417 | |
Thereafter | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 1,789,858 | |
Unhedged Variable rate | 506,000 | |
Principal amount | 2,295,858 | |
Future principal payments due on secured and unsecured debt | ' | |
Balloon payments | 2,286,611 | |
Principal amortization | 9,247 | |
Secured notes payable | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 424,287 | |
Unhedged Variable rate | 173,224 | |
Principal amount | 597,511 | |
Stated interest rate (as a percent) | 5.06% | |
Effective rate (as a percent) | 4.98% | [1] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 20,365 | |
2015 | 60,813 | |
2016 | 248,173 | |
2017 | 123,808 | |
2018 | 3,609 | |
Thereafter | 140,743 | |
Secured notes payable from bank maturing on 7/1/14 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 6.05% | |
Effective rate (as a percent) | 4.88% | [1] |
Maturity Date | 1-Jul-14 | [2],[3] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 6,419 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 6,419 | |
Secured notes payable from bank maturing on 11/1/14 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 5.39% | |
Effective rate (as a percent) | 4.00% | [1] |
Maturity Date | 1-Nov-14 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 7,433 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 7,433 | |
Other secured notes payable maturing on 11/18/14 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 6.00% | |
Effective rate (as a percent) | 6.00% | [1] |
Maturity Date | 18-Nov-14 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 180 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 180 | |
Secured notes payable from bank maturing on 6/1/15 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 5.64% | |
Effective rate (as a percent) | 4.50% | [1] |
Maturity Date | 1-Jun-15 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 103 | |
2015 | 5,777 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 5,880 | |
Secured notes payable maturing on 7/1/15 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Effective rate (as a percent) | 1.66% | [1] |
Maturity Date | 1-Jul-15 | [2],[4] |
Number of extensions available under line of credit | 2 | |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 46,203 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 46,203 | |
CMBS maturing on 1/1/16 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 5.73% | |
Effective rate (as a percent) | 5.73% | [1] |
Maturity Date | 1-Jan-16 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 1,279 | |
2015 | 1,816 | |
2016 | 75,501 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 78,596 | |
CMBS maturing on 4/1/16 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 5.82% | |
Effective rate (as a percent) | 5.82% | [1] |
Maturity Date | 1-Apr-16 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 697 | |
2015 | 988 | |
2016 | 29,389 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 31,074 | |
Secured Debt Maturing On 15 April 2016 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 5.74% | |
Effective rate (as a percent) | 3.00% | [1] |
Maturity Date | 15-Apr-16 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 125 | |
2015 | 175 | |
2016 | 6,916 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 7,216 | |
Secured notes payable maturing on 06/1/16 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Effective rate (as a percent) | 1.56% | [1] |
Maturity Date | 1-Jun-16 | [2],[5] |
Number of extensions available under line of credit | 2 | |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 6,419 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 6,419 | |
CMBS maturing on 8/1/16 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 6.35% | |
Effective rate (as a percent) | 6.35% | [1] |
Maturity Date | 1-Aug-16 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 1,851 | |
2015 | 2,652 | |
2016 | 126,715 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 131,218 | |
Secured Debt from Bank Maturing on 20 January 2017 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 2.15% | |
Effective rate (as a percent) | 2.15% | [1] |
Maturity Date | 20-Jan-17 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 76,000 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 76,000 | |
Secured notes payable maturing on 8/23/17 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Effective rate (as a percent) | 1.51% | [1] |
Maturity Date | 23-Aug-17 | [2],[6] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 44,422 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 44,422 | |
Secured Debt Other Maturing 1 April 2020 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 7.75% | |
Effective rate (as a percent) | 7.75% | [1] |
Maturity Date | 1-Apr-20 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 1,100 | |
2015 | 1,570 | |
2016 | 1,696 | |
2017 | 1,832 | |
2018 | 1,979 | |
Thereafter | 106,491 | |
Outstanding Loan Balance | 114,668 | |
Secured Debt Maturing on January 2023 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 4.66% | |
Effective rate (as a percent) | 4.66% | [1] |
Maturity Date | 1-Jan-23 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 891 | |
2015 | 1,396 | |
2016 | 1,458 | |
2017 | 1,534 | |
2018 | 1,608 | |
Thereafter | 33,501 | |
Outstanding Loan Balance | 40,388 | |
Secured notes payable from bank maturing on 6/1/37 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 6.50% | |
Effective rate (as a percent) | 6.50% | [1] |
Maturity Date | 1-Jun-37 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 17 | |
2015 | 18 | |
2016 | 19 | |
2017 | 20 | |
2018 | 22 | |
Thereafter | 751 | |
Outstanding Loan Balance | 847 | |
Unamortized Premiums | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 548 | |
Unamortized Premiums | 2014 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 270 | |
Unamortized Premiums | 2015 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 218 | |
Unamortized Premiums | 2016 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 60 | |
Unamortized Premiums | 2017 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 0 | |
Unamortized Premiums | 2018 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 0 | |
Unamortized Premiums | Thereafter | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized premium | 0 | |
Unsecured Debt | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Principal amount | 2,654,270 | |
Unsecured Debt | 2014 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
2014 | -123 | |
Unsecured Debt | 2015 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
2015 | -170 | |
Unsecured Debt | 2016 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
2016 | 499,824 | |
Unsecured Debt | 2017 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
2017 | -184 | |
Unsecured Debt | 2018 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
2018 | -192 | |
Unsecured Debt | Thereafter | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Thereafter | 2,155,115 | |
2016 Unsecured Senior Bank Term Loan | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 350,000 | |
Unhedged Variable rate | 150,000 | |
Principal amount | 500,000 | |
Effective rate (as a percent) | 1.40% | [1] |
Maturity Date | 31-Jul-16 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 500,000 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 0 | |
Outstanding Loan Balance | 500,000 | |
2019 Unsecured Senior Bank Term Loan | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 600,000 | |
Unhedged Variable rate | 0 | |
Principal amount | 600,000 | |
Effective rate (as a percent) | 2.05% | [1] |
Maturity Date | 3-Jan-19 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 600,000 | |
Outstanding Loan Balance | 600,000 | |
$1.5 billion unsecured senior line of credit | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Fixed Rate/Hedged Variable Rate | 0 | |
Unhedged Variable rate | 506,000 | |
Principal amount | 506,000 | |
Effective rate (as a percent) | 1.25% | [1] |
Maturity Date | 3-Jan-19 | [2] |
Annual facility fee (as a percent) | 0.20% | |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 506,000 | |
Outstanding Loan Balance | 506,000 | |
4.60% unsecured senior notes payable | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 4.60% | |
Effective rate (as a percent) | 4.61% | [1] |
Maturity Date | 1-Apr-22 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 550,000 | |
Outstanding Loan Balance | 550,000 | |
3.90% unsecured senior notes payable | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Stated interest rate (as a percent) | 3.90% | |
Effective rate (as a percent) | 3.94% | [1] |
Maturity Date | 15-Jun-23 | [2] |
Future principal payments due on secured and unsecured debt | ' | |
2014 | 0 | |
2015 | 0 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
Thereafter | 500,000 | |
Outstanding Loan Balance | 500,000 | |
Unamortized Discounts | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | -1,730 | |
Unamortized Discounts | 2014 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | -123 | |
Unamortized Discounts | 2015 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | -170 | |
Unamortized Discounts | 2016 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | -176 | |
Unamortized Discounts | 2017 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | -184 | |
Unamortized Discounts | 2018 | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | -192 | |
Unamortized Discounts | Thereafter | ' | |
Future principal payments due on secured and unsecured debt | ' | |
Unamortized discount | ($885) | |
LIBOR | Secured notes payable maturing on 7/1/15 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Base rate | 'LIBOR | |
Basis spread on LIBOR (as a percent) | 1.50% | |
LIBOR | Secured notes payable maturing on 06/1/16 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Base rate | 'LIBOR | |
Basis spread on LIBOR (as a percent) | 1.40% | |
LIBOR | Secured notes payable maturing on 8/23/17 | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Base rate | 'LIBOR | |
Basis spread on LIBOR (as a percent) | 1.35% | |
LIBOR | 2016 Unsecured Senior Bank Term Loan | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Base rate | 'LIBOR | |
Basis spread on LIBOR (as a percent) | 1.20% | |
LIBOR | 2019 Unsecured Senior Bank Term Loan | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Base rate | 'LIBOR | |
Basis spread on LIBOR (as a percent) | 1.20% | |
LIBOR | $1.5 billion unsecured senior line of credit | ' | |
Summary of fixed rate/hedged and floating rate debt | ' | |
Base rate | 'LIBOR | |
Basis spread on LIBOR (as a percent) | 1.10% | [7] |
[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] | Secured note payable was repaid on April 2, 2014. | |
[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 $36.0 million. We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. | |
[6] | Secured construction loan with aggregate commitments of $250.4 million. We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. | |
[7] | In addition to the stated rate, the unsecured senior line of credit is subject to an annual facility fee of 0.20%. |
Secured_and_unsecured_senior_d5
Secured and unsecured senior debt Interest expense (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest expense incurred | ' | ' |
Gross interest | $31,136 | $32,041 |
Capitalized interest | -12,013 | -14,021 |
Interest expense | $19,123 | $18,020 |
Secured_and_unsecured_senior_d6
Secured and unsecured senior debt Secured construction loans (Details) (Construction Loans, USD $) | 3 Months Ended | |
Mar. 31, 2014 | ||
Debt Instrument [Line Items] | ' | |
Outstanding Loan Balance | $97,044,000 | |
Available Balance | 244,356,000 | |
Total Aggregate Commitments | 341,400,000 | |
Secured notes payable maturing on 7/1/15 | ' | |
Debt Instrument [Line Items] | ' | |
Total Aggregate Commitments | 55,000,000 | |
Secured notes payable maturing on 06/1/16 | ' | |
Debt Instrument [Line Items] | ' | |
Total Aggregate Commitments | 36,000,000 | |
Secured notes payable maturing on 8/23/17 | ' | |
Debt Instrument [Line Items] | ' | |
Total Aggregate Commitments | 250,400,000 | |
San Francisco Bay Area | Secured notes payable maturing on 7/1/15 | ' | |
Debt Instrument [Line Items] | ' | |
Maturity Date | 1-Jul-15 | [1] |
Outstanding Loan Balance | 46,203,000 | |
Available Balance | 8,797,000 | |
Total Aggregate Commitments | 55,000,000 | |
San Francisco Bay Area | Secured notes payable maturing on 06/1/16 | ' | |
Debt Instrument [Line Items] | ' | |
Maturity Date | 1-Jun-16 | [2] |
Outstanding Loan Balance | 6,419,000 | |
Available Balance | 29,581,000 | |
Total Aggregate Commitments | 36,000,000 | |
Greater Boston market | Secured notes payable maturing on 8/23/17 | ' | |
Debt Instrument [Line Items] | ' | |
Maturity Date | 23-Aug-17 | [3] |
Outstanding Loan Balance | 44,422,000 | |
Available Balance | 205,978,000 | |
Total Aggregate Commitments | $250,400,000 | |
LIBOR | San Francisco Bay Area | Secured notes payable maturing on 7/1/15 | ' | |
Debt Instrument [Line Items] | ' | |
Base rate | 'LIBOR | |
Applicable margin (as a percent) | 1.50% | |
LIBOR | San Francisco Bay Area | Secured notes payable maturing on 06/1/16 | ' | |
Debt Instrument [Line Items] | ' | |
Base rate | 'LIBOR | |
Applicable margin (as a percent) | 1.40% | |
LIBOR | Greater Boston market | Secured notes payable maturing on 8/23/17 | ' | |
Debt Instrument [Line Items] | ' | |
Base rate | 'LIBOR | |
Applicable margin (as a percent) | 1.35% | |
[1] | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. | |
[2] | We have two, one-year options to extend the stated maturity date to June 1, 2018, subject to certain conditions. | |
[3] | We have a one-year option to extend the stated maturity date to August 23, 2018, subject to certain conditions. |
Interest_rate_swap_agreements_1
Interest rate swap agreements (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
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 | 3,600,000 | ' |
Collateral obligation requirements | 0 | ' |
Interest Rate Derivatives, at Fair Value, Net | $2,400,000 | ' |
Interest_rate_swap_agreements_2
Interest rate swap agreements Outstanding interest rate swap (Details) (USD $) | Mar. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Interest rate hedge agreements | ' | |
Fair Values | ($1,219) | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 950,000 | |
Notional Amount in Effect as of 12/31/14 | 950,000 | |
Notional Amount in Effect as of 12/31/15 | 500,000 | |
Notional Amount in Effect as of 12/31/16 | 500,000 | |
Unsecured Bank Term Loan 2016 | Minimum | ' | |
Interest rate hedge agreements | ' | |
Applicable margin (as a percent) | 1.20% | |
Unsecured Senior Line of Credit and Bank Term Loans | Minimum | ' | |
Interest rate hedge agreements | ' | |
Applicable margin (as a percent) | 1.10% | |
Transaction Date December 2013, Interest Pay Rate .980% | ' | |
Interest rate hedge agreements | ' | |
Number of Contracts | 2 | |
Interest Pay Rate (as a percent) | 0.98% | [1] |
Fair Values | -3,090 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 500,000 | |
Notional Amount in Effect as of 12/31/14 | 0 | |
Notional Amount in Effect as of 12/31/15 | 0 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Interest Rate Hedge .23 Percent Transaction Date December 2013 | ' | |
Interest rate hedge agreements | ' | |
Number of Contracts | 2 | |
Interest Pay Rate (as a percent) | 0.23% | [1] |
Fair Values | -126 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 250,000 | |
Notional Amount in Effect as of 12/31/14 | 250,000 | |
Notional Amount in Effect as of 12/31/15 | 0 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Interest Rate Hedge .21 Percent Transaction Date March 2014 [Member] | ' | |
Interest rate hedge agreements | ' | |
Number of Contracts | 4 | |
Interest Pay Rate (as a percent) | 0.21% | [1] |
Fair Values | -48 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 200,000 | |
Notional Amount in Effect as of 12/31/14 | 200,000 | |
Notional Amount in Effect as of 12/31/15 | 0 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Transaction date December 2014, interest pay rate 0.527% | ' | |
Interest rate hedge agreements | ' | |
Number of Contracts | 3 | |
Interest Pay Rate (as a percent) | 0.53% | [1] |
Fair Values | 394 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 0 | |
Notional Amount in Effect as of 12/31/14 | 500,000 | |
Notional Amount in Effect as of 12/31/15 | 500,000 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Transaction date March 2016, interest pay rate 1.406% | ' | |
Interest rate hedge agreements | ' | |
Number of Contracts | 3 | |
Interest Pay Rate (as a percent) | 1.40% | [1] |
Fair Values | 1,651 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 0 | |
Notional Amount in Effect as of 12/31/14 | 0 | |
Notional Amount in Effect as of 12/31/15 | 0 | |
Notional Amount in Effect as of 12/31/16 | $500,000 | |
[1] | In addition to the interest pay rate, borrowings outstanding as of March 31, 2014, under our unsecured senior bank term loans include an applicable margin of 1.20% and borrowings outstanding under our unsecured senior line of credit include an applicable margin of 1.10% |
Fair_value_measurements_Assets
Fair value measurements Assets and Liabilities on Recurring Basis (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Available-for-sale securities | $32,977 | $4,469 |
Fair value measured on recurring basis | Fair Value | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | 32,977 | 4,469 |
Interest rate swap agreements | 2,045 | 2,870 |
Liabilities: | ' | ' |
Interest rate swap agreements | 3,264 | 6,191 |
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | 32,977 | 4,469 |
Interest rate swap agreements | 0 | 0 |
Liabilities: | ' | ' |
Interest rate swap agreements | 0 | 0 |
Fair value measured on recurring basis | Significant Other Observable Inputs | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | 0 | 0 |
Interest rate swap agreements | 2,045 | 2,870 |
Liabilities: | ' | ' |
Interest rate swap agreements | 3,264 | 6,191 |
Fair value measured on recurring basis | Significant Other Observable Inputs | ' | ' |
Assets: | ' | ' |
Available-for-sale securities | 0 | 0 |
Interest rate swap agreements | 0 | 0 |
Liabilities: | ' | ' |
Interest rate swap agreements | $0 | $0 |
Fair_value_measurements_Book_a
Fair value measurements Book and Fair Values (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
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 | ' | ' |
Available-for-sale securities | $32,977 | $4,469 |
Book Value | ' | ' |
Summary of marketable securities, secured notes payable, unsecured senior line of credit, unsecured term loans, and unsecured senior convertible notes | ' | ' |
Available-for-sale securities | 32,977 | 4,469 |
Interest rate swap agreements | 2,045 | 2,870 |
Interest rate swap agreements | 3,264 | 6,191 |
Secured notes payable | 597,511 | 708,831 |
Unsecured senior notes payable | 1,048,270 | 1,048,230 |
Unsecured senior line of credit | 506,000 | 204,000 |
Unsecured senior bank term loans | 1,100,000 | 1,100,000 |
Fair Value | ' | ' |
Summary of marketable securities, secured notes payable, unsecured senior line of credit, unsecured term loans, and unsecured senior convertible notes | ' | ' |
Available-for-sale securities | 32,977 | 4,469 |
Interest rate swap agreements | 2,045 | 2,870 |
Interest rate swap agreements | 3,264 | 6,191 |
Secured notes payable | 617,084 | 736,772 |
Unsecured senior notes payable | 1,053,170 | 1,043,125 |
Unsecured senior line of credit | 500,860 | 193,714 |
Unsecured senior bank term loans | $1,099,448 | $1,099,897 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Earnings per share | ' | ' | ||
Income from continuing operations | $40,911 | $29,400 | ||
Net income attributable to noncontrolling interests | -1,195 | -982 | ||
Dividends on preferred stock | -6,471 | -6,471 | ||
Net income attributable to unvested restricted stock awards | -374 | -342 | ||
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted | 32,871 | 21,605 | ||
(Loss) income from discontinued operations, net | -162 | [1] | 837 | [1] |
Net income attributable to Alexandria’s common stockholders | $32,709 | $22,442 | ||
Weighted average shares of common stock outstanding – basic and diluted | 71,073 | 63,161 | ||
Earnings per share attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted: | ' | ' | ||
Continuing operations | $0.46 | $0.35 | ||
Discontinued operations | $0 | $0.01 | ||
Earnings per share – basic and diluted | $0.46 | $0.36 | ||
[1] | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale†as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Net_income_attributable_to_Ale2
Net income attributable to Alexandria Real Estate Equities, Inc. (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Net income attributable to Alexandria Real Estate Equities, Inc.: | ' | ' | ||
Income from continuing operations | $40,911 | $29,400 | ||
Less: net income attributable to noncontrolling interests | -1,195 | -982 | ||
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc. | 39,716 | 28,418 | ||
(Loss) income from discontinued operations | -162 | [1] | 837 | [1] |
Less: net income from discontinued operations attributable to noncontrolling interests | 0 | 0 | ||
Net income attributable to Alexandria Real Estate Equities, Inc. | $39,554 | $29,255 | ||
[1] | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale†as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Stockholders_equity_Details
Stockholders' equity (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Issuances of common stock | ' |
Dividends declared on common stock | $50,154 |
Dividends declared on common stock (dollar per share) | $0.70 |
Dividends declared on preferred stock | 6,471 |
Preferred stock, shares authorized | 100,000,000 |
Number of shares issued and outstanding | 15,200,000 |
Number of "excess stock" authorized (in shares) | 200,000,000 |
Number of excess stock authorized issued and outstanding (in shares) | 0 |
Series D Preferred Stock | ' |
Issuances of common stock | ' |
Dividends declared on preferred stock | 4,400 |
Dividends declared on preferred stock (dollar per share) | $0.44 |
Series E Cumulative Redeemable Preferred Stock | ' |
Issuances of common stock | ' |
Dividends declared on preferred stock | $2,100 |
Dividends declared on preferred stock (dollar per share) | $0.40 |
Stockholders_equity_Accumulate
Stockholders' equity Accumulated other comprehensive loss (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Balance as of December 31, 2013 | ($36,204) |
Other comprehensive income (loss) before reclassifications | 21,265 |
Amounts reclassified from other comprehensive income | -3,490 |
Net other comprehensive income (loss) | 17,775 |
Balance as of March 31, 2014 | -18,429 |
Unrealized Gain on Marketable Securities | ' |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Balance as of December 31, 2013 | 1,590 |
Other comprehensive income (loss) before reclassifications | 18,779 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income (loss) | 18,779 |
Balance as of March 31, 2014 | 20,369 |
Unrealized Loss on Interest Rate Swap Agreements | ' |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Balance as of December 31, 2013 | -3,321 |
Other comprehensive income (loss) before reclassifications | 5,592 |
Amounts reclassified from other comprehensive income | -3,490 |
Net other comprehensive income (loss) | 2,102 |
Balance as of March 31, 2014 | -1,219 |
Unrealized Loss on Foreign Currency Translation | ' |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ' |
Balance as of December 31, 2013 | -34,473 |
Other comprehensive income (loss) before reclassifications | -3,106 |
Amounts reclassified from other comprehensive income | 0 |
Net other comprehensive income (loss) | -3,106 |
Balance as of March 31, 2014 | ($37,579) |
Noncontrolling_interests_Detai
Noncontrolling interests (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Noncontrolling interests | ' | ' |
Redeemable noncontrolling interest balances | $14,413 | $14,444 |
Remaining noncontrolling interests | 67,356 | 47,708 |
Noncontrolling Interests | ' | ' |
Noncontrolling interests | ' | ' |
Number of properties owned | 10 | ' |
Number of development parcels owned | 3 | ' |
Remaining noncontrolling interests | 67,400 | 47,700 |
Redeemable Noncontrolling Interests | ' | ' |
Noncontrolling interests | ' | ' |
Redeemable noncontrolling interest balances | $14,400 | $14,400 |
Discontinued_operations_Detail
Discontinued operations (Details) (USD $) | 3 Months Ended | 15 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||
property | property | |||||
Net assets of discontinued operations | ' | ' | ' | ' | ||
Properties "held for sale, "net | $7,653 | ' | $7,653 | $7,644 | ||
Other assets | 157 | ' | 157 | 103 | ||
Total assets | 7,810 | ' | 7,810 | 7,747 | ||
Total liabilities | -132 | ' | -132 | -266 | ||
Net assets of discontinued operations | 7,678 | ' | 7,678 | 7,481 | ||
Income from discontinued operations, net | ' | ' | ' | ' | ||
Total revenues | 0 | 3,792 | ' | ' | ||
Operating expenses | -162 | -1,449 | ' | ' | ||
Total revenues less operating expenses from discontinued operations | -162 | 2,343 | ' | ' | ||
Depreciation expense | 0 | -1,166 | ' | ' | ||
Loss on sale of real estate | 0 | -340 | ' | ' | ||
(Loss) income from discontinued operations | ($162) | [1] | $837 | [1] | ' | ' |
Number of operating properties classified as held for sale | 4 | ' | ' | ' | ||
Number of properties sold | ' | ' | 7 | ' | ||
[1] | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale†as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Subsequent_events_Narrative_De
Subsequent events Narrative (Details) (Subsequent Event [Member], 500 Townsend Street [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Apr. 30, 2014 |
sqft | |
Subsequent Event [Member] | 500 Townsend Street [Member] | ' |
Subsequent Event [Line Items] | ' |
Area of real estate property | 300,000 |
Payments to acquire real estate property | $50 |
Condensed_consolidating_financ2
Condensed consolidating financial information Balance Sheet (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Investments in real estate, net | $6,930,262 | $6,776,914 | ' | ' |
Cash and cash equivalents | 74,970 | 57,696 | 87,001 | 140,971 |
Restricted cash | 30,454 | 27,709 | ' | ' |
Tenant receivables | 10,619 | 9,918 | ' | ' |
Deferred rent | 202,087 | 190,425 | ' | ' |
Deferred leasing and financing costs, net | 192,618 | 192,658 | ' | ' |
Investments | 169,322 | 140,288 | ' | ' |
Investments in and advances to affiliates | 0 | 0 | ' | ' |
Other assets | 145,707 | 134,156 | ' | ' |
Total assets | 7,756,039 | 7,529,764 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 597,511 | 708,831 | ' | ' |
Unsecured senior notes payable | 1,048,270 | 1,048,230 | ' | ' |
Unsecured senior line of credit | 506,000 | 204,000 | ' | ' |
Unsecured senior bank term loans | 1,100,000 | 1,100,000 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 443,893 | 435,342 | ' | ' |
Dividends payable | 55,860 | 54,420 | ' | ' |
Total liabilities | 3,751,534 | 3,550,823 | ' | ' |
Redeemable noncontrolling interests | 14,413 | 14,444 | ' | ' |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,922,736 | 3,916,789 | ' | ' |
Noncontrolling interests | 67,356 | 47,708 | ' | ' |
Total equity | 3,990,092 | 3,964,497 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 7,756,039 | 7,529,764 | ' | ' |
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 0 | 0 | ' | ' |
Cash and cash equivalents | 36,379 | 14,790 | 39,012 | 98,567 |
Restricted cash | 54 | 55 | ' | ' |
Tenant receivables | 0 | 0 | ' | ' |
Deferred rent | 0 | 0 | ' | ' |
Deferred leasing and financing costs, net | 35,051 | 36,901 | ' | ' |
Investments | 0 | 0 | ' | ' |
Investments in and advances to affiliates | 6,601,258 | 6,299,551 | ' | ' |
Other assets | 18,755 | 20,226 | ' | ' |
Total assets | 6,691,497 | 6,371,523 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 0 | 0 | ' | ' |
Unsecured senior notes payable | 1,048,270 | 1,048,230 | ' | ' |
Unsecured senior line of credit | 506,000 | 204,000 | ' | ' |
Unsecured senior bank term loans | 1,100,000 | 1,100,000 | ' | ' |
Accounts payable, accrued expenses, and tenant security deposits | 58,921 | 48,373 | ' | ' |
Dividends payable | 55,570 | 54,131 | ' | ' |
Total liabilities | 2,768,761 | 2,454,734 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,922,736 | 3,916,789 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 3,922,736 | 3,916,789 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 6,691,497 | 6,371,523 | ' | ' |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 0 | 0 | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 1,914 |
Restricted cash | 0 | 0 | ' | ' |
Tenant receivables | 0 | 0 | ' | ' |
Deferred rent | 0 | 0 | ' | ' |
Deferred leasing and financing costs, net | 0 | 0 | ' | ' |
Investments | 10,868 | 10,868 | ' | ' |
Investments in and advances to affiliates | 6,090,900 | 5,823,058 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | 6,101,768 | 5,833,926 | ' | ' |
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 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 6,101,768 | 5,833,926 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 6,101,768 | 5,833,926 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 6,101,768 | 5,833,926 | ' | ' |
Combined Non- Guarantor Subsidiaries | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in real estate, net | 6,930,262 | 6,776,914 | ' | ' |
Cash and cash equivalents | 38,591 | 42,906 | 47,989 | 40,490 |
Restricted cash | 30,400 | 27,654 | ' | ' |
Tenant receivables | 10,619 | 9,918 | ' | ' |
Deferred rent | 202,087 | 190,425 | ' | ' |
Deferred leasing and financing costs, net | 157,567 | 155,757 | ' | ' |
Investments | 158,454 | 129,420 | ' | ' |
Investments in and advances to affiliates | 124,891 | 119,421 | ' | ' |
Other assets | 126,952 | 113,930 | ' | ' |
Total assets | 7,779,823 | 7,566,345 | ' | ' |
Liabilities, Noncontrolling Interests, and Equity | ' | ' | ' | ' |
Secured notes payable | 597,511 | 708,831 | ' | ' |
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 | 384,972 | 386,969 | ' | ' |
Dividends payable | 290 | 289 | ' | ' |
Total liabilities | 982,773 | 1,096,089 | ' | ' |
Redeemable noncontrolling interests | 14,413 | 14,444 | ' | ' |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 6,715,281 | 6,408,104 | ' | ' |
Noncontrolling interests | 67,356 | 47,708 | ' | ' |
Total equity | 6,782,637 | 6,455,812 | ' | ' |
Total liabilities, noncontrolling interests, and equity | 7,779,823 | 7,566,345 | ' | ' |
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 | -12,817,049 | -12,242,030 | ' | ' |
Other assets | 0 | 0 | ' | ' |
Total assets | -12,817,049 | -12,242,030 | ' | ' |
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 | ' | ' |
Total liabilities | 0 | 0 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | -12,817,049 | -12,242,030 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | -12,817,049 | -12,242,030 | ' | ' |
Total liabilities, noncontrolling interests, and equity | ($12,817,049) | ($12,242,030) | ' | ' |
Condensed_consolidating_financ3
Condensed consolidating financial information Income Statement (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenues: | ' | ' | ||
Rental | $130,570 | $111,526 | ||
Tenant recoveries | 41,682 | 35,565 | ||
Other Income | 3,934 | 2,992 | ||
Total revenues | 176,186 | 150,083 | ||
Expenses: | ' | ' | ||
Rental operations | 52,507 | 45,186 | ||
General and administrative | 13,224 | 11,648 | ||
Interest | 19,123 | 18,020 | ||
Depreciation and amortization | 50,421 | 45,829 | ||
Total expenses | 135,275 | 120,683 | ||
(Loss) income from continuing operations before equity in earnings of affiliates | 40,911 | ' | ||
Equity in earnings of affiliates | 0 | 0 | ||
Income from continuing operations | 40,911 | 29,400 | ||
(Loss) income from discontinued operations | -162 | [1] | 837 | [1] |
Net income | 40,749 | 30,237 | ||
Net income attributable to noncontrolling interests | 1,195 | 982 | ||
Dividends on preferred stock | 6,471 | 6,471 | ||
Net income attributable to unvested restricted stock awards | 374 | 342 | ||
Net income attributable to Alexandria’s common stockholders | 32,709 | 22,442 | ||
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' | ||
Revenues: | ' | ' | ||
Rental | 0 | 0 | ||
Tenant recoveries | 0 | 0 | ||
Other Income | 2,919 | 2,595 | ||
Total revenues | 2,919 | 2,595 | ||
Expenses: | ' | ' | ||
Rental operations | 0 | 0 | ||
General and administrative | 10,860 | 10,269 | ||
Interest | 13,539 | 11,720 | ||
Depreciation and amortization | 1,471 | 1,475 | ||
Total expenses | 25,870 | 23,464 | ||
(Loss) income from continuing operations before equity in earnings of affiliates | -22,951 | -20,869 | ||
Equity in earnings of affiliates | 62,505 | 49,807 | ||
Income from continuing operations | 39,554 | 28,938 | ||
(Loss) income from discontinued operations | 0 | 317 | ||
Net income | 39,554 | 29,255 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Dividends on preferred stock | 6,471 | 6,471 | ||
Net income attributable to unvested restricted stock awards | 374 | 342 | ||
Net income attributable to Alexandria’s common stockholders | 32,709 | 22,442 | ||
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' | ||
Revenues: | ' | ' | ||
Rental | 0 | 0 | ||
Tenant recoveries | 0 | 0 | ||
Other Income | 0 | -66 | ||
Total revenues | 0 | -66 | ||
Expenses: | ' | ' | ||
Rental operations | 0 | 0 | ||
General and administrative | 0 | 0 | ||
Interest | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Total expenses | 0 | 0 | ||
(Loss) income from continuing operations before equity in earnings of affiliates | 0 | -66 | ||
Equity in earnings of affiliates | 58,306 | 47,239 | ||
Income from continuing operations | 58,306 | 47,173 | ||
(Loss) income from discontinued operations | 0 | 0 | ||
Net income | 58,306 | 47,173 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Dividends on preferred stock | 0 | 0 | ||
Net income attributable to unvested restricted stock awards | 0 | 0 | ||
Net income attributable to Alexandria’s common stockholders | 58,306 | 47,173 | ||
Combined Non- Guarantor Subsidiaries | ' | ' | ||
Revenues: | ' | ' | ||
Rental | 130,570 | 111,526 | ||
Tenant recoveries | 41,682 | 35,565 | ||
Other Income | 4,633 | 3,571 | ||
Total revenues | 176,885 | 150,662 | ||
Expenses: | ' | ' | ||
Rental operations | 52,507 | 45,186 | ||
General and administrative | 5,982 | 4,487 | ||
Interest | 5,584 | 6,300 | ||
Depreciation and amortization | 48,950 | 44,354 | ||
Total expenses | 113,023 | 100,327 | ||
(Loss) income from continuing operations before equity in earnings of affiliates | 63,862 | 50,335 | ||
Equity in earnings of affiliates | 1,148 | 960 | ||
Income from continuing operations | 65,010 | 51,295 | ||
(Loss) income from discontinued operations | -162 | 520 | ||
Net income | 64,848 | 51,815 | ||
Net income attributable to noncontrolling interests | 1,195 | 982 | ||
Dividends on preferred stock | 0 | 0 | ||
Net income attributable to unvested restricted stock awards | 0 | 0 | ||
Net income attributable to Alexandria’s common stockholders | 63,653 | 50,833 | ||
Eliminations | ' | ' | ||
Revenues: | ' | ' | ||
Rental | 0 | 0 | ||
Tenant recoveries | 0 | 0 | ||
Other Income | -3,618 | -3,108 | ||
Total revenues | -3,618 | -3,108 | ||
Expenses: | ' | ' | ||
Rental operations | 0 | 0 | ||
General and administrative | -3,618 | -3,108 | ||
Interest | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Total expenses | -3,618 | -3,108 | ||
(Loss) income from continuing operations before equity in earnings of affiliates | 0 | 0 | ||
Equity in earnings of affiliates | -121,959 | -98,006 | ||
Income from continuing operations | -121,959 | -98,006 | ||
(Loss) income from discontinued operations | 0 | 0 | ||
Net income | -121,959 | -98,006 | ||
Net income attributable to noncontrolling interests | 0 | 0 | ||
Dividends on preferred stock | 0 | 0 | ||
Net income attributable to unvested restricted stock awards | 0 | 0 | ||
Net income attributable to Alexandria’s common stockholders | ($121,959) | ($98,006) | ||
[1] | (Loss) income from discontinued operations includes the results of operations of four properties that were classified as “held for sale†as of March 31, 2014, as well as the results of operations (prior to disposition) and loss on sale of real estate attributable to seven properties sold during the period from January 1, 2013, to March 31, 2014. |
Condensed_consolidating_financ4
Condensed consolidating financial information Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income | $40,749 | $30,237 |
Unrealized gains on marketable securities: | ' | ' |
Unrealized holding (losses) gains arising during the period | 18,779 | 316 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | -272 |
Unrealized gains on marketable securities, net | 18,779 | 44 |
Unrealized gains on interest rate swap agreements: | ' | ' |
Unrealized interest rate swap gains arising during the period | 5,592 | -133 |
Reclassification adjustment for amortization of interest expense included in net income | -3,490 | 4,308 |
Unrealized gains on interest rate swap agreements, net | 2,102 | 4,175 |
Foreign currency translation losses | -3,106 | -2,360 |
Total other comprehensive income (loss) | 17,775 | 1,859 |
Comprehensive income | 58,524 | 32,096 |
Less: comprehensive income attributable to noncontrolling interests | -1,195 | -898 |
Comprehensive income attributable to Alexandria’s common stockholders | 57,329 | 31,198 |
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' |
Net income | 39,554 | 29,255 |
Unrealized gains on marketable securities: | ' | ' |
Unrealized holding (losses) gains arising during the period | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 0 |
Unrealized gains on marketable securities, net | 0 | 0 |
Unrealized gains on interest rate swap agreements: | ' | ' |
Unrealized interest rate swap gains arising during the period | 5,592 | -133 |
Reclassification adjustment for amortization of interest expense included in net income | -3,490 | 4,308 |
Unrealized gains on interest rate swap agreements, net | 2,102 | 4,175 |
Foreign currency translation losses | 0 | 0 |
Total other comprehensive income (loss) | 2,102 | 4,175 |
Comprehensive income | 41,656 | 33,430 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | 41,656 | 33,430 |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' |
Net income | 58,306 | 47,173 |
Unrealized gains on marketable securities: | ' | ' |
Unrealized holding (losses) gains arising during the period | 0 | -8 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 38 |
Unrealized gains on marketable securities, net | 0 | 30 |
Unrealized gains on interest rate swap agreements: | ' | ' |
Unrealized interest rate swap gains arising during the period | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 |
Unrealized gains on interest rate swap agreements, net | 0 | 0 |
Foreign currency translation losses | 0 | 0 |
Total other comprehensive income (loss) | 0 | 30 |
Comprehensive income | 58,306 | 47,203 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | 58,306 | 47,203 |
Combined Non- Guarantor Subsidiaries | ' | ' |
Net income | 64,848 | 51,815 |
Unrealized gains on marketable securities: | ' | ' |
Unrealized holding (losses) gains arising during the period | 18,779 | 324 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | -310 |
Unrealized gains on marketable securities, net | 18,779 | 14 |
Unrealized gains on interest rate swap agreements: | ' | ' |
Unrealized interest rate swap gains arising during the period | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 |
Unrealized gains on interest rate swap agreements, net | 0 | 0 |
Foreign currency translation losses | -3,106 | -2,360 |
Total other comprehensive income (loss) | 15,673 | -2,346 |
Comprehensive income | 80,521 | 49,469 |
Less: comprehensive income attributable to noncontrolling interests | -1,195 | -898 |
Comprehensive income attributable to Alexandria’s common stockholders | 79,326 | 48,571 |
Eliminations | ' | ' |
Net income | -121,959 | -98,006 |
Unrealized gains on marketable securities: | ' | ' |
Unrealized holding (losses) gains arising during the period | 0 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 0 | 0 |
Unrealized gains on marketable securities, net | 0 | 0 |
Unrealized gains on interest rate swap agreements: | ' | ' |
Unrealized interest rate swap gains arising during the period | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 |
Unrealized gains on interest rate swap agreements, net | 0 | 0 |
Foreign currency translation losses | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 |
Comprehensive income | -121,959 | -98,006 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | ($121,959) | ($98,006) |
Condensed_consolidating_financ5
Condensed consolidating financial information Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income | $40,749 | $30,237 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 50,421 | 46,995 |
Loss on sale of real estate | 0 | 340 |
Amortization of loan fees and costs | 2,561 | 2,386 |
Amortization of debt premiums/discounts | 205 | 115 |
Amortization of acquired above and below market leases | -816 | -830 |
Deferred rent | -11,882 | -6,198 |
Stock compensation expense | 3,228 | 3,349 |
Equity in (income) loss related to subsidiaries | 0 | 0 |
Investment gains | -4,040 | -446 |
Investment losses | 1,694 | 386 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | 0 | 1,506 |
Tenant receivables | -690 | -818 |
Deferred leasing costs | -7,572 | -11,757 |
Other assets | -17,315 | -7,302 |
Intercompany receivables and payables | ' | 0 |
Accounts payable, accrued expenses, and tenant security deposits | 16,716 | -10,722 |
Net cash (used in) provided by operating activities | 73,259 | 47,241 |
Investing Activities | ' | ' |
Proceeds from sale of properties | 0 | 80,203 |
Additions to properties | -111,587 | -139,245 |
Purchase of properties | -42,338 | 0 |
Change in restricted cash related to construction projects | -140 | -17 |
Contributions to unconsolidated real estate entity | -747 | -2,074 |
Investments in subsidiaries | 0 | 0 |
Additions to investments | -11,905 | -10,363 |
Proceeds from investments | 3,998 | 1,972 |
Net cash (used in) provided by investing activities | -162,719 | -69,524 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 51,030 | 17,215 |
Repayments of borrowings from secured notes payable | -210,844 | -2,749 |
Principal borrowings from unsecured senior line of credit | 360,000 | 179,000 |
Repayments of borrowings from unsecured senior line of credit | -58,000 | -191,000 |
Transfers to/from parent company | 0 | 0 |
Change in restricted cash related to financings | 1,059 | 8,656 |
Deferred financing costs paid | -8 | -46 |
Dividends paid on common stock | -48,714 | -35,687 |
Dividends paid on preferred stock | -6,471 | -6,471 |
Contributions by noncontrolling interests | 19,410 | 0 |
Distributions to noncontrolling interests | -988 | -427 |
Net cash provided by (used in) financing activities | 106,474 | -31,509 |
Effect of foreign exchange rate changes on cash and cash equivalents | 260 | -178 |
Net increase (decrease) in cash and cash equivalents | 17,274 | -53,970 |
Cash and cash equivalents at beginning of period | 57,696 | 140,971 |
Cash and cash equivalents at end of period | 74,970 | 87,001 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 6,093 | 9,964 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | 0 | 38,820 |
Change in accrued capital expenditures | -6,028 | -37,045 |
Assumption of secured notes payable in connection with purchase of properties | -48,329 | 0 |
Alexandria Real Estate Equities, Inc. (Issuer) | ' | ' |
Operating Activities | ' | ' |
Net income | 39,554 | 29,255 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,471 | 1,473 |
Loss on sale of real estate | ' | 0 |
Amortization of loan fees and costs | 1,770 | 1,680 |
Amortization of debt premiums/discounts | 40 | 11 |
Amortization of acquired above and below market leases | 0 | 0 |
Deferred rent | 0 | 0 |
Stock compensation expense | 3,228 | 3,349 |
Equity in (income) loss related to subsidiaries | -62,505 | -49,807 |
Investment gains | 0 | 0 |
Investment losses | 0 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | ' | 7 |
Tenant receivables | 0 | -51 |
Deferred leasing costs | 0 | -350 |
Other assets | -748 | 29,445 |
Intercompany receivables and payables | ' | -21 |
Accounts payable, accrued expenses, and tenant security deposits | 13,478 | -16,301 |
Net cash (used in) provided by operating activities | -3,712 | -1,310 |
Investing Activities | ' | ' |
Proceeds from sale of properties | ' | 10,796 |
Additions to properties | 0 | 0 |
Purchase of properties | 0 | ' |
Change in restricted cash related to construction projects | 0 | 0 |
Contributions to unconsolidated real estate entity | 0 | 0 |
Investments in subsidiaries | -221,513 | -14,842 |
Additions to investments | 0 | 0 |
Proceeds from investments | 0 | 0 |
Net cash (used in) provided by investing activities | -221,513 | -4,046 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 0 | 0 |
Repayments of borrowings from secured notes payable | 0 | 0 |
Principal borrowings from unsecured senior line of credit | 360,000 | 179,000 |
Repayments of borrowings from unsecured senior line of credit | -58,000 | -191,000 |
Transfers to/from parent company | 0 | 0 |
Change in restricted cash related to financings | 0 | 0 |
Deferred financing costs paid | 0 | -41 |
Dividends paid on common stock | -48,715 | -35,687 |
Dividends paid on preferred stock | -6,471 | -6,471 |
Contributions by noncontrolling interests | 0 | ' |
Distributions to noncontrolling interests | 0 | 0 |
Net cash provided by (used in) financing activities | 246,814 | -54,199 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 21,589 | -59,555 |
Cash and cash equivalents at beginning of period | 14,790 | 98,567 |
Cash and cash equivalents at end of period | 36,379 | 39,012 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 347 | 3,735 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | ' | 29,820 |
Change in accrued capital expenditures | 0 | 0 |
Assumption of secured notes payable in connection with purchase of properties | 0 | ' |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ' | ' |
Operating Activities | ' | ' |
Net income | 58,306 | 47,173 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 0 | 0 |
Loss on sale of real estate | ' | 0 |
Amortization of loan fees and costs | 0 | 0 |
Amortization of debt premiums/discounts | 0 | 0 |
Amortization of acquired above and below market leases | 0 | 0 |
Deferred rent | 0 | 0 |
Stock compensation expense | 0 | 0 |
Equity in (income) loss related to subsidiaries | -58,306 | -47,239 |
Investment gains | 0 | -121 |
Investment losses | 0 | 187 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | ' | 0 |
Tenant receivables | 0 | 0 |
Deferred leasing costs | 0 | 0 |
Other assets | 0 | 0 |
Intercompany receivables and payables | ' | 0 |
Accounts payable, accrued expenses, and tenant security deposits | 0 | 0 |
Net cash (used in) provided by operating activities | 0 | 0 |
Investing Activities | ' | ' |
Proceeds from sale of properties | ' | 0 |
Additions to properties | 0 | 0 |
Purchase of properties | 0 | ' |
Change in restricted cash related to construction projects | 0 | 0 |
Contributions to unconsolidated real estate entity | 0 | 0 |
Investments in subsidiaries | -193,863 | -30,986 |
Additions to investments | 0 | -3 |
Proceeds from investments | 0 | 252 |
Net cash (used in) provided by investing activities | -193,863 | -30,737 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 0 | 0 |
Repayments of borrowings from secured notes payable | 0 | 0 |
Principal borrowings from unsecured senior line of credit | 0 | 0 |
Repayments of borrowings from unsecured senior line of credit | 0 | 0 |
Transfers to/from parent company | 193,863 | 28,823 |
Change in restricted cash related to financings | 0 | 0 |
Deferred financing costs paid | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Dividends paid on preferred stock | 0 | 0 |
Contributions by noncontrolling interests | 0 | ' |
Distributions to noncontrolling interests | 0 | 0 |
Net cash provided by (used in) financing activities | 193,863 | 28,823 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | -1,914 |
Cash and cash equivalents at beginning of period | 0 | 1,914 |
Cash and cash equivalents at end of period | 0 | 0 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 0 | 0 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | ' | 0 |
Change in accrued capital expenditures | 0 | 0 |
Assumption of secured notes payable in connection with purchase of properties | 0 | ' |
Combined Non- Guarantor Subsidiaries | ' | ' |
Operating Activities | ' | ' |
Net income | 64,848 | 51,815 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 48,950 | 45,522 |
Loss on sale of real estate | ' | 340 |
Amortization of loan fees and costs | 791 | 706 |
Amortization of debt premiums/discounts | 165 | 104 |
Amortization of acquired above and below market leases | -816 | -830 |
Deferred rent | -11,882 | -6,198 |
Stock compensation expense | 0 | 0 |
Equity in (income) loss related to subsidiaries | -1,148 | -960 |
Investment gains | -4,040 | -325 |
Investment losses | 1,694 | 199 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | ' | 1,499 |
Tenant receivables | -690 | -767 |
Deferred leasing costs | -7,572 | -11,407 |
Other assets | -16,567 | -36,747 |
Intercompany receivables and payables | ' | 21 |
Accounts payable, accrued expenses, and tenant security deposits | 3,238 | 5,579 |
Net cash (used in) provided by operating activities | 76,971 | 48,551 |
Investing Activities | ' | ' |
Proceeds from sale of properties | ' | 69,407 |
Additions to properties | -111,587 | -139,245 |
Purchase of properties | -42,338 | ' |
Change in restricted cash related to construction projects | -140 | -17 |
Contributions to unconsolidated real estate entity | -747 | -2,074 |
Investments in subsidiaries | -6,338 | 0 |
Additions to investments | -11,905 | -10,360 |
Proceeds from investments | 3,998 | 1,720 |
Net cash (used in) provided by investing activities | -169,057 | -80,569 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 51,030 | 17,215 |
Repayments of borrowings from secured notes payable | -210,844 | -2,749 |
Principal borrowings from unsecured senior line of credit | 0 | 0 |
Repayments of borrowings from unsecured senior line of credit | 0 | 0 |
Transfers to/from parent company | 227,851 | 17,005 |
Change in restricted cash related to financings | 1,059 | 8,656 |
Deferred financing costs paid | -8 | -5 |
Dividends paid on common stock | 1 | 0 |
Dividends paid on preferred stock | 0 | 0 |
Contributions by noncontrolling interests | 19,410 | ' |
Distributions to noncontrolling interests | -988 | -427 |
Net cash provided by (used in) financing activities | 87,511 | 39,695 |
Effect of foreign exchange rate changes on cash and cash equivalents | 260 | -178 |
Net increase (decrease) in cash and cash equivalents | -4,315 | 7,499 |
Cash and cash equivalents at beginning of period | 42,906 | 40,490 |
Cash and cash equivalents at end of period | 38,591 | 47,989 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 5,746 | 6,229 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | ' | 9,000 |
Change in accrued capital expenditures | -6,028 | -37,045 |
Assumption of secured notes payable in connection with purchase of properties | -48,329 | ' |
Eliminations | ' | ' |
Operating Activities | ' | ' |
Net income | -121,959 | -98,006 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 0 | 0 |
Loss on sale of real estate | ' | 0 |
Amortization of loan fees and costs | 0 | 0 |
Amortization of debt premiums/discounts | 0 | 0 |
Amortization of acquired above and below market leases | 0 | 0 |
Deferred rent | 0 | 0 |
Stock compensation expense | 0 | 0 |
Equity in (income) loss related to subsidiaries | 121,959 | 98,006 |
Investment gains | 0 | 0 |
Investment losses | 0 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash | ' | 0 |
Tenant receivables | 0 | 0 |
Deferred leasing costs | 0 | 0 |
Other assets | 0 | 0 |
Intercompany receivables and payables | ' | 0 |
Accounts payable, accrued expenses, and tenant security deposits | 0 | 0 |
Net cash (used in) provided by operating activities | 0 | 0 |
Investing Activities | ' | ' |
Proceeds from sale of properties | ' | 0 |
Additions to properties | 0 | 0 |
Purchase of properties | 0 | ' |
Change in restricted cash related to construction projects | 0 | 0 |
Contributions to unconsolidated real estate entity | 0 | 0 |
Investments in subsidiaries | 421,714 | 45,828 |
Additions to investments | 0 | 0 |
Proceeds from investments | 0 | 0 |
Net cash (used in) provided by investing activities | 421,714 | 45,828 |
Financing Activities | ' | ' |
Borrowings from secured notes payable | 0 | 0 |
Repayments of borrowings from secured notes payable | 0 | 0 |
Principal borrowings from unsecured senior line of credit | 0 | 0 |
Repayments of borrowings from unsecured senior line of credit | 0 | 0 |
Transfers to/from parent company | -421,714 | -45,828 |
Change in restricted cash related to financings | 0 | 0 |
Deferred financing costs paid | 0 | 0 |
Dividends paid on common stock | 0 | 0 |
Dividends paid on preferred stock | 0 | 0 |
Contributions by noncontrolling interests | 0 | ' |
Distributions to noncontrolling interests | 0 | 0 |
Net cash provided by (used in) financing activities | -421,714 | -45,828 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Supplemental Disclosure of Cash Flow Information | ' | ' |
Cash paid during the period for interest, net of interest capitalized | 0 | 0 |
Non-Cash Investing Activities | ' | ' |
Note receivable from sale of real estate | ' | 0 |
Change in accrued capital expenditures | 0 | 0 |
Assumption of secured notes payable in connection with purchase of properties | $0 | ' |