Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | ALEXANDRIA REAL ESTATE EQUITIES INC | |
Entity Central Index Key | 1035443 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 72,040,192 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Investments in real estate, net | $7,388,059 | $7,226,016 |
Cash and cash equivalents | 90,641 | 86,011 |
Restricted cash | 56,704 | 26,884 |
Tenant receivables | 10,627 | 10,548 |
Deferred rent | 243,459 | 234,124 |
Deferred leasing and financing costs, net | 199,576 | 201,798 |
Investments | 283,062 | 236,389 |
Other assets | 133,093 | 114,266 |
Total assets | 8,405,221 | 8,136,036 |
Liabilities, Noncontrolling Interests, and Equity | ||
Secured notes payable | 760,476 | 652,209 |
Unsecured senior notes payable | 1,747,450 | 1,747,370 |
Unsecured senior line of credit | 421,000 | 304,000 |
Unsecured senior bank term loans | 975,000 | 975,000 |
Accounts Payable and Accrued Liabilities | 645,619 | 489,085 |
Dividends payable | 58,824 | 58,814 |
Total liabilities | 4,608,369 | 4,226,478 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 14,282 | 14,315 |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity: | ||
Series D cumulative convertible preferred stock | 237,163 | 237,163 |
Series E cumulative redeemable preferred stock | 130,000 | 130,000 |
Common stock | 716 | 715 |
Additional paid-in capital | 3,383,456 | 3,461,189 |
Accumulated other comprehensive loss | 29,213 | -628 |
Alexandria’s stockholders’ equity | 3,780,548 | 3,828,439 |
Noncontrolling interests | 2,022 | 66,804 |
Total equity | 3,782,570 | 3,895,243 |
Total liabilities, noncontrolling interests, and equity | $8,405,221 | $8,136,036 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Rental | $143,608 | $130,570 |
Tenant recoveries | 48,394 | 41,682 |
Other Income | 4,751 | 3,934 |
Total revenues | 196,753 | 176,186 |
Expenses: | ||
Rental operations | 61,223 | 52,507 |
General and administrative | 14,387 | 13,224 |
Interest | 23,236 | 19,123 |
Depreciation and amortization | 58,920 | 50,421 |
Impairment of Real Estate | 14,510 | 0 |
Total expenses | 172,276 | 135,275 |
Income (Loss) from Equity Method Investments | 574 | 0 |
Income from continuing operations | 25,051 | 40,911 |
Loss from discontinued operations | -43 | -162 |
Net income | 25,008 | 40,749 |
Dividends on preferred stock | -6,247 | -6,471 |
Net income attributable to noncontrolling interests | -492 | -1,195 |
Net income attributable to unvested restricted stock awards | -483 | -374 |
Net Income (Loss) Available to Common Stockholders, Basic | $17,786 | $32,709 |
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ||
Continuing operations | $0.25 | $0.46 |
Discontinued operations | $0 | $0 |
Earnings per share – basic and diluted | $0.25 | $0.46 |
Common Stock, Dividends, Per Share, Declared | $0.74 | $0.70 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $25,008 | $40,749 |
Unrealized gains on marketable securities: | ||
Unrealized holding gains arising during the period | 28,435 | 18,779 |
Reclassification adjustment for losses included in net income | 1,103 | 0 |
Unrealized gains on marketable securities, net | 29,538 | 18,779 |
Unrealized (losses) gains on interest rate swap agreements: | ||
Unrealized interest rate swap (losses) gains arising during the period | -3,013 | 5,592 |
Reclassification adjustment for amortization of interest expense included in net income | 505 | -3,490 |
Unrealized gains on interest rate swap agreements, net | -2,508 | 2,102 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -6,271 | -3,106 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 9,236 | 0 |
Unrealized foreign currency translation losses arising during the period | 2,965 | -3,106 |
Total other comprehensive income (loss) | 29,995 | 17,775 |
Comprehensive income | 55,003 | 58,524 |
Less: comprehensive income attributable to noncontrolling interests | -646 | -1,195 |
Comprehensive income attributable to Alexandria’s common stockholders | $54,357 | $57,329 |
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 E Cumulative Redeemable Preferred Stock | |
In Thousands, except Share data, unless otherwise specified | Preferred Stock | Preferred Stock | ||||||||
Beginning balance at Dec. 31, 2014 | $14,315 | $14,315 | ||||||||
Beginning balance at Dec. 31, 2014 | 3,895,243 | 715 | 3,461,189 | 0 | -628 | 66,804 | 237,163 | 130,000 | ||
Beginning balance, common shares at Dec. 31, 2014 | 71,463,876 | |||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuances pursuant to stock plan (in shares) | 81,260 | |||||||||
Net Income | 24,744 | 24,516 | 228 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Nonredeemable Noncontrolling Interest | 29,995 | 29,841 | 154 | |||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 340 | 340 | ||||||||
Issuances pursuant to stock plan | 5,768 | 1 | 5,767 | |||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | -113,967 | [1] | -48,463 | -65,504 | ||||||
Dividends declared on common stock | -53,306 | -53,306 | ||||||||
Dividends on preferred stock | -6,247 | -6,247 | ||||||||
Distributions in excess of earnings | -35,037 | 35,037 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net Income | 264 | |||||||||
Distributions to noncontrolling interests | -297 | |||||||||
Ending balance at Mar. 31, 2015 | 14,282 | 14,282 | ||||||||
Ending balance at Mar. 31, 2015 | $3,782,570 | $716 | $3,383,456 | $0 | $29,213 | $2,022 | $237,163 | $130,000 | ||
Ending balance, common shares at Mar. 31, 2015 | 71,545,136 | |||||||||
[1] | For additional information, refer to Note 11 – “Noncontrolling Interests†to our unaudited consolidated financial statements under Item 1 of this report. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $25,008 | $40,749 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 58,920 | 50,421 |
Impairment of Real Estate | 14,510 | 0 |
Equity in earnings of affiliates | -574 | 0 |
Distributions of earnings from unconsolidated joint ventures | 491 | 0 |
Amortization of loan fees and costs | 2,834 | 2,561 |
Amortization of debt premiums/discounts | -82 | 205 |
Amortization of above and below Market Leases | -933 | -816 |
Deferred rent | -9,901 | -11,882 |
Stock compensation expense | 3,690 | 3,228 |
Investment gains | -5,937 | -4,040 |
Investment losses | 2,225 | 1,694 |
Changes in operating assets and liabilities: | ||
Restricted cash | -51 | 0 |
Tenant receivables | -102 | -690 |
Deferred leasing costs | -7,131 | -7,572 |
Other assets | -3,247 | -17,315 |
Accounts payable, accrued expenses, and tenant security deposits | 27,121 | 16,716 |
Net cash (used in) provided by operating activities | 106,841 | 73,259 |
Investing Activities | ||
Proceeds from sale of properties | 67,616 | 0 |
Additions to real estate | -104,632 | -111,587 |
Purchase of real estate | -93,938 | -42,338 |
Deposits for investing activities | -28,000 | 0 |
Change in restricted cash related to construction projects | 0 | -140 |
Contributions to unconsolidated real estate entity | -2,539 | -747 |
Additions to investments | -15,118 | -11,905 |
Sales of investments | 2,345 | 3,998 |
Repayment of notes receivable | 4,214 | 0 |
Net cash (used in) provided by investing activities | -170,052 | -162,719 |
Financing Activities | ||
Borrowings from secured notes payable | 29,585 | 51,030 |
Repayments of borrowings from secured notes payable | -7,934 | -210,844 |
Principal borrowings from unsecured senior line of credit | 167,000 | 360,000 |
Repayments of borrowings from unsecured senior line of credit | -50,000 | -58,000 |
Change in restricted cash related to financings | -1,369 | 1,059 |
Deferred financing costs paid | -563 | -8 |
Dividends paid on common stock | -53,295 | -48,714 |
Dividends paid on preferred stock | -6,247 | -6,471 |
Proceeds from Noncontrolling Interests | 340 | 19,410 |
Distributions to noncontrolling interests | -9,846 | -988 |
Net cash provided by (used in) financing activities | 67,671 | 106,474 |
Effect of foreign exchange rate changes on cash and cash equivalents | 170 | 260 |
Net increase (decrease) in cash and cash equivalents | 4,630 | 17,274 |
Cash and cash equivalents at beginning of period | 86,011 | 57,696 |
Cash and cash equivalents at end of period | 90,641 | 74,970 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, net of interest capitalized | 15,514 | 6,093 |
Non-Cash Investing Activities | ||
Change in accrued construction | 7,249 | 6,028 |
Assumption of secured notes payable in connection with purchase of properties | -82,000 | -48,329 |
Payable for purchase of noncontrolling interest | ($113,967) | $0 |
Background
Background | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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,” “ARE,” “we,” “us” and “our” refer to Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries. | ||||
Alexandria Real Estate Equities, Inc. (NYSE:ARE), is a self-administered and self-managed investment-grade REIT, and is the largest and leading REIT focused on unique collaborative campuses in urban innovation clusters located in key coastal science and technology gateway cities, with a total market capitalization of $11.3 billion as of March 31, 2015, and an asset base of 30.7 million square feet, including 18.5 million RSF of operating and current value-creation projects, as well as an additional 2.2 million square feet of near-term value-creation development projects and 10.0 million square feet of future ground-up development projects. 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, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria is known for its high-quality and diverse client tenant base, with approximately 52% of its total annualized base rent (“ABR”) (as of March 31, 2015) generated from investment-grade client tenants. Alexandria has a longstanding and proven track record of developing Class A assets clustered in urban science and technology campuses that provide its innovative client tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. 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 our website at www.are.com. | ||||
Our asset base consisted of the following, as of March 31, 2015: | ||||
Square Feet | ||||
Operating properties | 16,620,690 | |||
Development properties (includes unconsolidated joint ventures) | 1,763,531 | |||
Redevelopment properties | 143,777 | |||
Total operating and current value-creation projects | 18,527,998 | |||
Near-term value-creation projects (CIP) | 2,164,780 | |||
Future value-creation projects | 9,961,508 | |||
12,126,288 | ||||
Total | 30,654,286 | |||
• | Investment-grade client tenants represented approximately 52% of our total annualized base rent; | |||
• | Approximately 94% 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 indexes; | |||
• | Approximately 95% 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; and | |||
• | Approximately 93% of our leases (on an RSF basis) provided for the recapture of certain capital expenditures (such as 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 interim 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, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of presentation | Basis of presentation and summary of significant accounting policies | |
We have prepared the accompanying interim consolidated financial statements in accordance with GAAP and in conformity with the rules and regulations of the 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, 2015. 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, 2014. | ||
Basis of presentation and consolidation | ||
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. | ||
In certain circumstances, we may enter into joint venture arrangements with outside partners. On a quarterly basis, we evaluate each joint venture arrangement under the VIE model, and if the entity is determined not to be a VIE, then we evaluate the entity under the voting model to determine if the entity should be consolidated. | ||
Under the VIE model, an entity is determined to be a VIE if it has any of the following characteristics: | ||
• | The entity does not have sufficient equity to finance its activities without additional subordinated financial support; | |
• | The equity holders, as a group, lack the characteristics of a controlling financial interest; or | |
• | The legal entity is established with non-substantive voting rights. | |
If an entity is determined to be a VIE, we evaluate whether or not we are the primary beneficiary using qualitative analyses. Factors considered include, but are not limited to, the purpose and design of the VIE, risks that the VIE was designed to create and pass through, the form of our ownership interest, our representation on the entity’s governing body, the size and seniority of our investment, our ability to participate in policy-making decisions, and the rights of the other investors to participate in the decision-making process and/or liquidate the venture, if applicable. We consolidate VIEs whenever we determine that we are the primary beneficiary. | ||
If an entity is determined not to be a VIE, we then evaluate such entity under the voting model. Under the voting model, if we are the general partner or managing member, or have a similar role that can direct the operations of the entity, we have a presumption that we control the entity and we should consolidate regardless of our ownership percentage. If we determine that the other equity holders have any one of the following rights, it is assumed that we do not control the entity and therefore should not consolidate the entity: (i) the substantive ability to dissolve the entity or remove us from the lead role of the entity, or (ii) substantive rights that allow them to participate in the activities that most significantly impact the entity’s economic performance. | ||
As of March 31, 2015, we had two joint ventures that did not meet the requirements for consolidation and were accounted for under the equity method of accounting. Refer to Note 3 – “Investments in Real Estate,” appearing elsewhere in this quarterly report on Form 10-Q, for further information on our unconsolidated joint ventures. | ||
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. | ||
Investments in real estate and properties classified as “held for sale” | ||
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 of an in-place lease, 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. Acquisition-related 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 terms 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 activity cease, interest, property taxes, insurance, and certain other costs would no longer be eligible for capitalization and would be expensed as incurred. Expenditures for repairs and maintenance are expensed as incurred. | ||
A property is classified as “held for sale” when all of the following criteria for a plan of sale have been met: (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. Depreciation of assets ceases upon designation of a property as “held for sale.” Prior to our adoption of the new discontinued operations standard on October 1, 2014, the operations of properties “held for sale” were classified as discontinued operations in our consolidated statements of income, and amounts for all prior periods presented were reclassified from continuing operations to discontinued operations. | ||
Subsequent to the adoption of the new standard, if the disposal of the property represents a strategic shift that has (or will have) a major effect on our operations or financial results, such as (i) a major line of business, (ii) a major geographical area, (iii) a major equity method investment, or (iv) other major parts of an entity, then the operations of the property “held for sale,” 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. The disposal of an individual property generally will not represent a strategic shift and therefore will typically not meet the criteria for classification as discontinued operations. | ||
Impairment of long-lived assets | ||
Long-lived assets to be held and used, including our rental properties, CIP, land held for development, 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, CIP, and land held for development, are assessed by project and include significant fluctuations in estimated rental revenues less rental operating expenses, 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 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 unless our interest in the entity is deemed to be 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, 2015, and December 31, 2014, 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 might 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. | ||
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 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, common area expenses, 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 tenant receivables and deferred rent arising from the straight-lining of rent. As of March 31, 2015, and December 31, 2014, we had no allowance for uncollectible tenant receivables and deferred rent. | ||
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 client 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 science and technology industries, as well as in finance. Our research team is responsible for assessing and monitoring the credit quality of our client tenants and any material changes in credit quality. | ||
Interest and other income | ||
Interest and other income was $485 thousand and $862 thousand during the three months ended March 31, 2015 and 2014, respectively. Interest income is included in other income in the accompanying consolidated statements of income. | ||
Income taxes | ||
We are organized and qualify as a REIT pursuant to the Internal Revenue Code (the “Code”). Under the Code, a REIT that distributes at least 90% of its REIT taxable income to its shareholders annually and meets certain other conditions is not subject to federal income taxes, but could be subject to certain state and local taxes. We distribute 100% of our taxable income annually; therefore, a provision for federal income taxes is not required. In addition to our REIT returns, we file federal, state, and local tax returns for our subsidiaries. We file with jurisdictions located in the U.S., Canada, India, China, and other international locations. Our tax returns are subject to routine examination in various jurisdictions for the calendar years 2010 through 2013. | ||
Recent accounting pronouncements | ||
In February 2015, the FASB issued an Accounting Standards Update that requires reporting entities to evaluate whether they should consolidate certain legal entities. The Accounting Standards Update modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This Accounting Standards Update affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the Accounting Standards Update using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We are currently assessing the potential impact that the adoption of the Accounting Standards Update will have on our consolidated financial statements. | ||
In April 2015, the FASB issued an Accounting Standards Update that requires reporting entities to present debt issuance costs as a direct deduction from the face amount of that note payable presented in the balance sheet. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity is required to apply the amendments in the Accounting Standards Update retrospectively to all prior periods. We are currently assessing the potential impact that the adoption of the Accounting Standards Update will have on our consolidated financial statements. |
Investments_in_real_estate_net
Investments in real estate, net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Real Estate [Abstract] | |||||||||
Investments in real estate, net | Investments in real estate | ||||||||
Our investments in real estate consisted of the following as of March 31, 2015, and December 31, 2014 (in thousands): | |||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Land (related to rental properties) | $ | 679,070 | $ | 624,681 | |||||
Buildings and building improvements | 6,609,158 | 6,171,504 | |||||||
Other improvements | 221,535 | 192,128 | |||||||
Rental properties | 7,509,763 | 6,988,313 | |||||||
Current value-creation projects (CIP): | |||||||||
Current development in North America | 361,182 | 500,894 | |||||||
Current redevelopment in North America | 52,927 | 42,482 | |||||||
Current development in Asia | — | 14,065 | |||||||
414,109 | 557,441 | ||||||||
Rental properties and current value-creation projects | 7,923,872 | 7,545,754 | |||||||
Near-term value-creation projects in North America (CIP): | |||||||||
Alexandria Center® at Kendall Square – Binney Street (1) | 130,475 | 321,907 | |||||||
Other projects | 97,169 | 107,471 | |||||||
227,644 | 429,378 | ||||||||
Future value-creation projects: | |||||||||
North America | 190,407 | 175,175 | |||||||
Asia | 79,938 | 78,548 | |||||||
270,345 | 253,723 | ||||||||
Near-term and future value-creation projects | 497,989 | 683,101 | |||||||
Current, near-term, and future value-creation projects | 912,098 | 1,240,542 | |||||||
Gross investments in real estate | 8,421,861 | 8,228,855 | |||||||
Equity method of accounting – unconsolidated joint ventures | 120,028 | 117,406 | |||||||
Gross investments in real estate – including unconsolidated joint ventures | 8,541,889 | 8,346,261 | |||||||
Less: accumulated depreciation | (1,153,830 | ) | (1,120,245 | ) | |||||
Investments in real estate | $ | 7,388,059 | $ | 7,226,016 | |||||
-1 | Includes amounts related to 100 Binney Street as of March 31, 2015, and 50, 60, and 100 Binney Street as of December 31, 2014. | ||||||||
Acquisitions | |||||||||
During the three months ended March 31, 2015, we acquired 640 Memorial Drive located in our Cambridge submarket, for $176.5 million. This property is a 225,504 RSF Class A, LEED® Gold certified, office/laboratory building located in mid-Cambridge, near the Massachusetts Institute of Technology campus, and is 100% leased to two high-quality life science client tenants pursuant to long-term leases. In connection with the acquisition, we assumed a secured note payable of $82.0 million with a contractual interest rate of 3.93% and a maturity date in 2023. The property is also subject to a long-term ground lease. | |||||||||
Sales of real estate assets and related impairment charges | |||||||||
During the three months ended March 31, 2015, we completed the sale of our land and land improvements at 661 University Avenue in Toronto, Canada, for $54.1 million. Also, during the three months ended March 31, 2015, we sold a 21,859 RSF rental property located in Pennsylvania for $1.9 million. The sales price less cost to sell for each of the dispositions approximated their carrying value at December 31, 2014, and resulted in no gain or loss on sale. | |||||||||
During the three months ended December 31, 2014, we completed the development of the core and shell for a 175,000 RSF building in Hyderabad, India. Also during this time, we evaluated an offer from an Indian multispecialty healthcare provider to acquire the building in its current condition, subject to a successful permitting to allow for hospital or patient-care use. This entity intended to operate the asset as a hospital or a patient-care facility, requiring additional government permits to complete the building construction, which significantly limited the likelihood that this entity would acquire the building. We intended to complete the development and lease the building if we failed to reach reasonable sale terms with this entity. As a result, we completed a probability-weighted cash flow analysis for this building, inclusive of the estimated costs to complete, and determined that the estimated undiscounted cash flows exceeded the carrying amount of the building as of December 31, 2014. | |||||||||
In March 2015, we determined that the building in Hyderabad, India met the criteria for classification as “held for sale” including, among others, the following: (i) management committed to sell the real estate and executed a purchase and sale agreement on March 23, 2015, and (ii) management determined that the sale was probable within one year. Upon classification as “held for sale,” we recognized an impairment charge of $14.5 million to lower the carrying costs of the real estate to its estimated fair value less cost to sell, including an estimated $4.2 million foreign exchange loss. On March 26, 2015, we completed the sale of the building to the Indian multi-specialty healthcare provider for $12.4 million. | |||||||||
As a result of our sales in Canada and India discussed above, we realized an aggregate $9.2 million of losses related to foreign currency translation that were previously classified in accumulated other comprehensive income (loss) on our accompanying consolidated balance sheets. | |||||||||
On a quarterly basis, we review current activities and changes in the business conditions of all of our properties prior to and subsequent to the end of each quarter to determine the existence of any triggering events requiring an impairment analysis. If triggering events are identified, we review an estimate of the future undiscounted cash flows for the properties, including a probability-weighted approach if multiple outcomes are under consideration. | |||||||||
Current value-creation development and redevelopment projects | |||||||||
As of March 31, 2015, we had seven ground-up development projects in process in North America aggregating 1.8 million RSF, including two unconsolidated joint venture development projects. We also had two projects undergoing redevelopment in North America aggregating 143,777 RSF. | |||||||||
Investments in unconsolidated joint ventures | |||||||||
Refer to our consolidation policy described in Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies.” | |||||||||
360 Longwood Avenue | |||||||||
We are currently developing a building aggregating 413,536 RSF in the Longwood Medical Area of the Greater Boston market through an unconsolidated joint venture. The cost at completion for this unconsolidated joint venture real estate project is approximately $350.0 million. As of March 31, 2015, the project was 38% occupied, primarily by Dana-Farber Cancer Institute, Inc. We currently have an additional 103,752 RSF, or 25% of the property, under lease negotiation and expect to reach stabilized occupancy at this property by 2016. The joint venture has a secured construction loan with commitments aggregating $213.2 million, with $166.5 million outstanding as of March 31, 2015. The remaining cost to complete the development is expected to be funded primarily from the remaining commitments of $46.7 million under the secured construction loan. The secured construction loan bears interest at LIBOR+3.75%, with a floor of 5.25%. The maturity date of of the loan is April 1, 2017, with two one-year options to extend the stated maturity date to April 1, 2019, subject to certain conditions. | |||||||||
We have a 27.5% interest in this unconsolidated joint venture that we account for under the equity method of accounting. Our investment under the equity method of accounting was $49.2 million as of March 31, 2015, and is classified in investments in real estate in our accompanying consolidated balance sheets. | |||||||||
1455/1515 Third Street | |||||||||
In September 2014, Alexandria and Uber Technologies, Inc. (“Uber”) entered into a joint venture agreement and acquired two land parcels supporting the development of two buildings aggregating 422,980 RSF at 1455/1515 Third Street in the Mission Bay submarket of the San Francisco Bay Area market for a total purchase price of $125.0 million. We have a 51% interest and Uber has a 49% interest in this unconsolidated joint venture. The purchase price was funded by contributions into the joint venture by Uber and us. We account for our investment in this joint venture under the equity method of accounting. Our investment under the equity method of accounting was $70.8 million as of March 31, 2015, and is classified in investments in real estate in our accompanying consolidated balance sheets. The project is expected to be funded by equity contributions from Uber and us. We may also fund a portion of the project with proceeds from a secured construction loan. The project is 100% leased to Uber for a 15-year term, commencing upon completion of development. | |||||||||
Near-term value-creation projects in North America (CIP) | |||||||||
Land undergoing predevelopment activities is classified as CIP and is undergoing activities prior to commencement of construction of aboveground building improvements. We generally will not commence ground-up development of any parcels without first securing pre-leasing for such space, except when there is solid market demand. If aboveground construction is not initiated at completion of predevelopment activities, the land parcel will be classified as future value-creation projects. 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 tenancy and multi-tenancy. As of March 31, 2015, we had $227.6 million of land undergoing predevelopment activities in North America aggregating 2.2 million square feet. | |||||||||
Predevelopment costs generally include the following activities prior to commencement of vertical construction: | |||||||||
• | 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 | ||||||||
• | 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. | ||||||||
Future value-creation projects | |||||||||
Future value-creation projects represent land that 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, 2015, we had $270.3 million of land held for future development supporting an aggregate of 10.0 million square feet of ground-up development. |
Investments
Investments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments [Abstract] | ||||||||
Investments | Investments | |||||||
We hold investments in certain publicly traded companies and privately held entities involved primarily in the science industry. Our investments in privately held entities are primarily accounted for under the cost method. Our investments in publicly traded companies are principally marketable equity securities which 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, 2015, 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 there are no other-than-temporary impairments in accumulated other comprehensive income related to “available for sale” securities as of March 31, 2015, or December 31, 2014. | ||||||||
The following table summarizes our investments as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | |||||||
“Available-for-sale” marketable equity securities, cost basis | $ | 33,851 | $ | 21,898 | ||||
Unrealized gains | 83,513 | 53,625 | ||||||
Unrealized losses | (1,608 | ) | (1,258 | ) | ||||
“Available-for-sale” marketable equity securities, at fair value | 115,756 | 74,265 | ||||||
Investments accounted for under cost method | 167,306 | 162,124 | ||||||
Total investments | $ | 283,062 | $ | 236,389 | ||||
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, | ||||||||
2015 | 2014 | |||||||
Investment gains | $ | 5,937 | $ | 4,040 | ||||
Investment losses | (2,225 | ) | (1,694 | ) | ||||
Investment income | $ | 3,712 | $ | 2,346 | ||||
Fair_value_measurements
Fair value measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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, 2015 and 2014. | |||||||||||||||||
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, 2015, and December 31, 2014 (in thousands): | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
“Available-for-sale” securities | $ | 115,756 | $ | 115,756 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,417 | $ | — | $ | 3,417 | $ | — | |||||||||
31-Dec-14 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
“Available-for-sale” securities | $ | 74,265 | $ | 74,265 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 909 | $ | — | $ | 909 | $ | — | |||||||||
The carrying values of cash and cash equivalents, restricted cash, tenant receivables, other assets, accounts payable, accrued expenses, and tenant security deposits approximate fair value. Our “available-for-sale” marketable equity securities and our interest rate swap agreements, respectively, have been recognized at fair value. Refer to Note 7 – “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, 2015, and December 31, 2014, the book and estimated 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-15 | 31-Dec-14 | ||||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
“Available-for-sale” marketable equity securities | $ | 115,756 | $ | 115,756 | $ | 74,265 | $ | 74,265 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,417 | $ | 3,417 | $ | 909 | $ | 909 | |||||||||
Secured notes payable | $ | 760,476 | $ | 794,432 | $ | 652,209 | $ | 693,338 | |||||||||
Unsecured senior notes payable | $ | 1,747,450 | $ | 1,823,090 | $ | 1,747,370 | $ | 1,793,255 | |||||||||
Unsecured senior line of credit | $ | 421,000 | $ | 421,279 | $ | 304,000 | $ | 304,369 | |||||||||
Unsecured senior bank term loans | $ | 975,000 | $ | 977,194 | $ | 975,000 | $ | 976,010 | |||||||||
Fair value measurements for other than on a non-recurring basis | |||||||||||||||||
Refer to discussion at Note 3 – “Investments in Real Estate” and Note 11 – “Noncontrolling Interests.” |
Secured_and_unsecured_senior_d
Secured and unsecured senior debt | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||
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, 2015 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Fixed-Rate/Hedged | Unhedged | Total | Percentage of Total Debt | Weighted Average | Weighted Average | ||||||||||||||||||||||||||||||||
Variable Rate | Variable Rate | Consolidated | Interest Rate at | Remaining Term | |||||||||||||||||||||||||||||||||
End of Period (1) | (in years) | ||||||||||||||||||||||||||||||||||||
Secured notes payable | $ | 482,663 | $ | 277,813 | $ | 760,476 | 19.5 | % | 4.3 | % | 3.1 | ||||||||||||||||||||||||||
Unsecured senior notes payable | 1,747,450 | — | 1,747,450 | 44.7 | 3.98 | 8.1 | |||||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | — | 421,000 | 421,000 | 10.8 | 1.22 | 3.8 | |||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | 350,000 | 25,000 | 375,000 | 9.6 | 1.6 | 1.3 | |||||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | 600,000 | — | 600,000 | 15.4 | 1.71 | 3.8 | |||||||||||||||||||||||||||||||
Total/weighted average | $ | 3,180,113 | $ | 723,813 | $ | 3,903,926 | 100 | % | 3.17 | % | 5.3 | ||||||||||||||||||||||||||
Percentage of total debt | 81 | % | 19 | % | 100 | % | |||||||||||||||||||||||||||||||
-1 | Represents the weighted average 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 indebtedness and respective principal maturities as of | |||||||||||||||||||||||||||||||||||||
March 31, 2015 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Stated | Weighted Average | Maturity Date(2) | Principal Payments Remaining for the Period Ending December 31, | ||||||||||||||||||||||||||||||||||
Debt | Rate | Interest Rate(1) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||||||||
Secured notes payable | |||||||||||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | % | 1.68 | % | 7/1/15 | (3) | $ | 46,983 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 46,983 | |||||||||||||||||
Greater Boston, San Francisco Bay Area, and San Diego | 5.73 | 5.73 | 1/1/16 | 1,356 | 75,501 | — | — | — | — | 76,857 | |||||||||||||||||||||||||||
Greater Boston, San Diego, and New York City | 5.82 | 5.82 | 4/1/16 | 741 | 29,389 | — | — | — | — | 30,130 | |||||||||||||||||||||||||||
San Diego | 5.74 | 3 | 4/15/16 | 132 | 6,916 | — | — | — | — | 7,048 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | 1.58 | 6/1/16 | — | 20,550 | — | — | — | — | 20,550 | |||||||||||||||||||||||||||
San Francisco Bay Area | 6.35 | 6.35 | 8/1/16 | 1,976 | 126,715 | — | — | — | — | 128,691 | |||||||||||||||||||||||||||
Maryland | 2.17 | 2.17 | 1/20/17 | — | — | 76,000 | — | — | — | 76,000 | |||||||||||||||||||||||||||
Greater Boston | L+1.35 | 1.53 | 8/23/17 | — | — | 134,280 | — | — | — | 134,280 | |||||||||||||||||||||||||||
San Diego, Maryland, and Seattle | 7.75 | 7.75 | 4/1/20 | 1,189 | 1,696 | 1,832 | 1,979 | 2,138 | 104,352 | 113,186 | |||||||||||||||||||||||||||
San Diego | 4.66 | 4.66 | 1/1/23 | 1,053 | 1,464 | 1,540 | 1,614 | 1,692 | 31,674 | 39,037 | |||||||||||||||||||||||||||
Greater Boston | 3.93 | 3.1 | 3/10/23 | — | — | — | 1,091 | 1,505 | 79,404 | 82,000 | |||||||||||||||||||||||||||
San Francisco Bay Area | 6.5 | 6.5 | 6/1/37 | 18 | 19 | 20 | 22 | 23 | 728 | 830 | |||||||||||||||||||||||||||
Unamortized premiums | 547 | 610 | 573 | 588 | 595 | 1,971 | 4,884 | ||||||||||||||||||||||||||||||
Secured notes payable weighted average/subtotal | 4.42 | % | 4.3 | 53,995 | 262,860 | 214,245 | 5,294 | 5,953 | 218,129 | 760,476 | |||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.6 | 7/31/16 | (4) | — | 375,000 | — | — | — | — | 375,000 | |||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.71 | 1/3/19 | — | — | — | — | 600,000 | — | 600,000 | ||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | L+1.10 | % | (5) | 1.22 | 1/3/19 | — | — | — | — | 421,000 | — | 421,000 | |||||||||||||||||||||||||
Unsecured senior notes payable | 2.75 | % | 2.79 | 1/15/20 | — | — | — | — | — | 400,000 | 400,000 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Unsecured senior notes payable | 4.5 | % | 4.51 | 7/30/29 | — | — | — | — | — | 300,000 | 300,000 | ||||||||||||||||||||||||||
Unamortized discounts | (246 | ) | (337 | ) | (350 | ) | (362 | ) | (375 | ) | (880 | ) | (2,550 | ) | |||||||||||||||||||||||
Unsecured debt weighted average/subtotal | 2.93 | (246 | ) | 374,663 | (350 | ) | (362 | ) | 1,020,625 | 1,749,120 | 3,143,450 | ||||||||||||||||||||||||||
Weighted average/total | 3.17 | % | $ | 53,749 | $ | 637,523 | $ | 213,895 | $ | 4,932 | $ | 1,026,578 | $ | 1,967,249 | $ | 3,903,926 | |||||||||||||||||||||
Balloon payments | $ | 46,983 | $ | 632,449 | $ | 210,280 | $ | — | $ | 1,021,000 | $ | 1,954,466 | $ | 3,865,178 | |||||||||||||||||||||||
Principal amortization | 6,766 | 5,074 | 3,615 | 4,932 | 5,578 | 12,783 | 38,748 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 53,749 | $ | 637,523 | $ | 213,895 | $ | 4,932 | $ | 1,026,578 | $ | 1,967,249 | $ | 3,903,926 | |||||||||||||||||||||||
Fixed-rate/hedged variable-rate debt | $ | 6,766 | $ | 591,973 | $ | 3,615 | $ | 4,932 | $ | 605,578 | $ | 1,967,249 | $ | 3,180,113 | |||||||||||||||||||||||
Unhedged variable-rate debt | 46,983 | 45,550 | 210,280 | — | 421,000 | — | 723,813 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 53,749 | $ | 637,523 | $ | 213,895 | $ | 4,932 | $ | 1,026,578 | $ | 1,967,249 | $ | 3,903,926 | |||||||||||||||||||||||
-1 | Represents the weighted average interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | ||||||||||||||||||||||||||||||||||||
-2 | Includes any extension options that we control. | ||||||||||||||||||||||||||||||||||||
-3 | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. We expect to exercise our option to extend the maturity date from July 1, 2015, to July 1, 2016. | ||||||||||||||||||||||||||||||||||||
-4 | We expect to partially repay a portion of this loan and extend the maturity date to 2021. | ||||||||||||||||||||||||||||||||||||
-5 | Our unsecured senior line of credit contains a feature that allows lenders to competitively bid on the interest rate for borrowings under the facility. This may result in an interest rate that is below the stated rate of L+1.10%. In addition to the cost of borrowing, the facility is subject to an annual facility fee of 0.20%, based on the aggregate commitments outstanding. | ||||||||||||||||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||||||||||||||||
The following table summarizes interest expense for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Gross interest | $ | 34,207 | $ | 31,136 | |||||||||||||||||||||||||||||||||
Capitalized interest | (10,971 | ) | (12,013 | ) | |||||||||||||||||||||||||||||||||
Interest expense | $ | 23,236 | $ | 19,123 | |||||||||||||||||||||||||||||||||
Repayment of secured note payable | |||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015, we repaid a $5.8 million secured note payable related to a Maryland property that bore interest at a rate of 4.50%. | |||||||||||||||||||||||||||||||||||||
Secured construction loans | |||||||||||||||||||||||||||||||||||||
The following table summarizes our secured construction loans as of March 31, 2015 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Market | Stated Rate | Maturity Date | Outstanding Balance | Remaining Commitments | Total Commitments | ||||||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | % | 7/1/15 | (1) | $ | 46,983 | $ | 8,017 | $ | 55,000 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | % | 6/1/16 | (2) | 20,550 | 15,450 | 36,000 | ||||||||||||||||||||||||||||||
Greater Boston | L+1.35 | % | 8/23/17 | (3) | 134,280 | 116,120 | 250,400 | ||||||||||||||||||||||||||||||
$ | 201,813 | $ | 139,587 | $ | 341,400 | ||||||||||||||||||||||||||||||||
-1 | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. We are in the process of exercising the first of two options to extend the maturity date from July 1, 2015 to July 1, 2016. | ||||||||||||||||||||||||||||||||||||
-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 | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
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, 2015 and 2014, 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 $1.3 million in accumulated other comprehensive loss to earnings as an increase to interest expense. As of March 31, 2015, and December 31, 2014, the fair values of our interest rate swap agreements aggregating a liability balance of $3.4 million and $909 thousand, respectively, were classified in accounts payable, accrued expenses, and tenant security deposits, based upon their respective fair values, without any offsetting pursuant to master netting agreements. Under our interest rate swap agreements, we have no collateral posting requirements. | |||||||||||||||||||||||
The Company has agreements with certain of its derivative counterparties that contain a provision wherein (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 as of March 31, 2015, it could have been required to settle its obligations under the agreements at their termination value of $3.4 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, 2015 (dollars in thousands): | |||||||||||||||||||||||
Number of Contracts | Weighted Average Interest Pay Rate (1) | Fair Value as of 3/31/15 | Notional Amount in Effect as of | ||||||||||||||||||||
Effective Date | Maturity Date | 3/31/15 | 12/31/15 | 12/31/16 | |||||||||||||||||||
31-Dec-14 | 31-Mar-16 | 3 | 0.53% | $ | (926 | ) | $ | 500,000 | $ | 500,000 | $ | — | |||||||||||
31-Mar-15 | 31-Mar-16 | 7 | 0.42% | (362 | ) | 450,000 | 450,000 | — | |||||||||||||||
31-Mar-16 | 31-Mar-17 | 5 | 1.35% | (2,129 | ) | — | — | 600,000 | |||||||||||||||
Total | $ | (3,417 | ) | $ | 950,000 | $ | 950,000 | $ | 600,000 | ||||||||||||||
-1 | In addition to the interest pay rate for each swap agreement, interest is payable at an applicable margin for borrowings outstanding as of March 31, 2015. Borrowings 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%. | ||||||||||||||||||||||
During April 2015, we executed additional interest rate swap agreements that were designated as cash flow hedges of interest rate risk (dollars in thousands): | |||||||||||||||||||||||
Number of Contracts | Weighted Average Interest Pay Rate (1) | Fair Value as of 3/31/15 | Notional Amount in Effect as of | ||||||||||||||||||||
Effective Date | Maturity Date | 3/31/15 | 12/31/15 | 12/31/16 | |||||||||||||||||||
31-Mar-16 | 31-Mar-17 | 4 | 0.93% | N/A | $ | — | $ | — | $ | 200,000 | |||||||||||||
-1 | In addition to the interest pay rate for each swap agreement, interest is payable at an applicable margin for borrowings outstanding as of March 31, 2015. Borrowings 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%. |
Accounts_payable_accrued_expen
Accounts payable, accrued expenses and tenant security deposits (Notes) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounts payable, accrued expenses, and tenant security deposits [Abstract] | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable, accrued expenses, and tenant security deposits | |||||||
The following table summarizes the components of accounts payable, accrued expenses, and tenant security deposits as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||
March 31, | 31-Dec | |||||||
2015 | 2014 | |||||||
Accounts payable and accrued expenses | $ | 156,269 | $ | 127,828 | ||||
Accrued construction | 85,769 | 91,110 | ||||||
Acquired below market leases | 29,198 | 8,810 | ||||||
Conditional asset retirement obligations | 8,984 | 9,108 | ||||||
Deferred rent liabilities | 26,722 | 36,231 | ||||||
Interest rate swap liabilities | 3,417 | 909 | ||||||
Prepaid rent and tenant security deposits | 204,688 | 193,699 | ||||||
Other liabilities (1) | 130,572 | 21,390 | ||||||
Total | $ | 645,619 | $ | 489,085 | ||||
-1 | Our March 31, 2015, balance includes a noncontrolling interest purchase liability related to the $108.3 million acquisition of the outstanding 10% noncontrolling interest in our 1.2 million RSF, flagship campus at Alexandria Technology Square®. For additional information, refer to Note 11 – “Noncontrolling Interests” to our unaudited consolidated financial statements under Item 1 of this report. |
Earnings_per_share
Earnings per share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings per share | arnings 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 EPS. Pursuant to the presentation and disclosure literature on gains or losses on sales or disposals by REITs and EPS 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 EPS 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 EPS using the two-class method. Our 7% series D cumulative convertible preferred stock (“Series D Convertible Preferred Stock”) is not a participating security, and is not included in the computation of EPS 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 EPS is computed using the weighted average shares of common stock outstanding determined for the basic EPS computation plus the effect of any dilutive securities. We had no dilutive securities outstanding during the three months ended March 31, 2015 and 2014. | ||||||||
The table below is a reconciliation of the numerators and denominators of the basic and diluted EPS computations for the three months ended March 31, 2015 and 2014 (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Income from continuing operations | $ | 25,051 | $ | 40,911 | ||||
Dividends on preferred stock | (6,247 | ) | (6,471 | ) | ||||
Net income attributable to noncontrolling interests | (492 | ) | (1,195 | ) | ||||
Net income attributable to unvested restricted stock awards | (483 | ) | (374 | ) | ||||
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted | 17,829 | 32,871 | ||||||
Loss from discontinued operations | (43 | ) | (162 | ) | ||||
Net income attributable to Alexandria’s common stockholders – basic and diluted | $ | 17,786 | $ | 32,709 | ||||
Weighted average shares of common stock outstanding – basic and diluted | 71,366 | 71,073 | ||||||
EPS attributable to Alexandria’s common stockholders – basic and diluted: | ||||||||
Continuing operations | $ | 0.25 | $ | 0.46 | ||||
Discontinued operations | — | — | ||||||
EPS – basic and diluted | $ | 0.25 | $ | 0.46 | ||||
Stockholders_equity
Stockholders' equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Stockholders' equity | Stockholders’ equity | ||||||||||||||||
Dividends | |||||||||||||||||
In March 2015, we declared cash dividends on our common stock for the first quarter of 2015, aggregating $53.3 million, or $0.74 per share. Also in March 2015, we also declared cash dividends on our Series D Convertible Preferred Stock for the first quarter of 2015, aggregating approximately $4.2 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 2015, aggregating approximately $2.1 million, or $0.403125 per share. In April 2015, we paid the cash dividends on our common stock, Series D Preferred Stock, and Series E Preferred Stock for the first quarter of 2015. | |||||||||||||||||
Accumulated other comprehensive loss | |||||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria, consists of the following (in thousands): | |||||||||||||||||
Unrealized Gain on Marketable Securities | Unrealized Loss on Interest Rate Swap Agreements | Unrealized Loss on Foreign Currency Translation | Total | ||||||||||||||
Balance as of December 31, 2014 | $ | 52,367 | $ | (909 | ) | $ | (52,086 | ) | $ | (628 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 28,435 | (3,013 | ) | (6,271 | ) | 19,151 | |||||||||||
Amounts reclassified from other comprehensive income (loss) | 1,103 | 505 | 9,236 | 10,844 | |||||||||||||
Amounts attributable to noncontrolling interest | — | — | (154 | ) | (154 | ) | |||||||||||
Net other comprehensive income (loss) | 29,538 | (2,508 | ) | 2,811 | 29,841 | ||||||||||||
Balance as of March 31, 2015 | $ | 81,905 | $ | (3,417 | ) | $ | (49,275 | ) | $ | 29,213 | |||||||
Preferred stock and excess stock authorizations | |||||||||||||||||
Our charter authorizes the issuance of up to 100.0 million shares of preferred stock, of which 14.7 million shares were issued and outstanding as of March 31, 2015. 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, 2015. |
Noncontrolling_interests
Noncontrolling interests | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 four projects as of March 31, 2015, 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. | |||||||||
The following table represents income from continuing operations and discontinued operations attributable to Alexandria Real Estate Equities, Inc., for the three months ended March 31, 2015 and 2014, excluding the amounts attributable to these noncontrolling interests: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Income from continuing operations attributable to Alexandria | $ | 24,559 | $ | 39,716 | |||||
Loss from discontinued operations | $ | (43 | ) | $ | (162 | ) | |||
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. | |||||||||
During the three months ended March 31, 2015, we executed an agreement to purchase the outstanding 10% noncontrolling interest in our 1.2 million RSF, flagship campus at Alexandria Technology Square® for $108.3 million. The first installment of $54.3 million was paid on April 1, 2015, and the second installment of $54.0 million is due on April 1, 2016. | |||||||||
Upon execution of the purchase agreement, we recognized a liability representing the fair value of the aggregate consideration, primarily consisting of the purchase price in the accounts payable, accrued expenses, and tenant security deposits line of our accompanying balance sheet. We measured the fair value of the liability using significant observable inputs including a discount rate that approximates our cost of debt capital in effect during the period the liability is outstanding. The difference between the noncontrolling interest purchase liability and the noncontrolling interest balance of $48.5 million was recognized as a reduction of additional paid-in capital. |
Discontinued_operations
Discontinued operations | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Discontinued operations | On October 1, 2014, we adopted an Accounting Standards Update on the reporting of discontinued operations that raised the threshold for classification of assets “held for sale” as discontinued operations. This Accounting Standards Update is applied prospectively, and since our adoption of this Accounting Standards Update, no additional properties have met the criteria for classification as a discontinued operation in our consolidated financial statements. Prior to the adoption of this Accounting Standards Update, certain properties met the previous criteria for classification as discontinued operations and are included in the summary of income from discontinued operations below. For additional information, refer to the section titled “Recent Accounting Pronouncements” in Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to our unaudited consolidated financial statements under Item 1 of this report. | ||||||||
The following is a summary of net assets “held for sale” as of March 31, 2015, and December 31, 2014, including the assets classified as “held for sale” subsequent to our adoption of the new Accounting Standards Update (in thousands): | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Properties classified as “held for sale” | $ | 117,203 | $ | 173,706 | |||||
Other assets | 5,611 | 10,147 | |||||||
Total assets | 122,814 | 183,853 | |||||||
Total liabilities | — | (6,044 | ) | ||||||
Net assets classified as “held for sale” (1) | $ | 122,814 | $ | 177,809 | |||||
-1 | As of March 31, 2015, net assets classified as “held for sale” was composed of the three properties that were classified as “held for sale,” including one property classified as “held for sale” and included in discontinued operations prior to the adoption of the Accounting Standards Update described above. | ||||||||
The following is a summary of loss from discontinued operations related to each asset that met the criteria to be classified as discontinued operations prior to the adoption of the new Accounting Standards Update on October 1, 2014, for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenues | $ | — | $ | — | |||||
Operating expenses | (43 | ) | (162 | ) | |||||
Loss from discontinued operations (1) | $ | (43 | ) | $ | (162 | ) | |||
-1 | Loss from discontinued operations includes the results of operations (prior to disposition) of four properties classified as “held for sale” and included in discontinued operations prior to our adoption of the new Accounting Standards Update described above. One property is still classified as “held for sale” and included in discontinued operations as of March 31, 2015, and three properties were sold during the period from January 1, 2014, to March 31, 2015. | ||||||||
The following is a summary of the losses included in our income from continuing operations for the three months ended March 31, 2015 and 2014, from assets classified as “held for sale” subsequent to our adoption of the new Accounting Standards Update (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenues | $ | 2,330 | $ | 2,500 | |||||
Operating expenses | (766 | ) | (701 | ) | |||||
Total revenues less operating expenses from assets classified as “held for sale,” not qualifying for classification as discontinued operations | 1,564 | 1,799 | |||||||
Depreciation expense | (127 | ) | (1,891 | ) | |||||
Impairment of real estate | (14,510 | ) | — | ||||||
Loss from assets classified as “held for sale,” not qualifying as discontinued operations (1) | $ | (13,073 | ) | $ | (92 | ) | |||
-1 | Includes the results of operations of two properties with an aggregate 234,186 RSF that were classified as “held for sale” as of March 31, 2015, and three properties with an aggregate 196,859 RSF that were sold during the three months ended March 31, 2015, but do not qualify for classification as discontinued operations. For additional information, refer to Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated financial statements under Item 1 of this report. |
Subsequent_events_Notes
Subsequent events (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent events |
Amended employment agreement with Mr. Marcus | |
In April 2015, we amended the employment agreement with Joel S. Marcus to, among other items, extend his term as our Chief Executive Officer (“CEO”) through March 31, 2018. | |
Key leasing activity | |
In April 2015, we leased 80,000 RSF to Juno Therapeutics, Inc. (“Juno”), at 400 Dexter Avenue North in our Lake Union submarket in Seattle. Juno has an expansion option for 71,000 RSF. We expect to commence ground-up development of our 287,806 RSF project in 2015, upon receipt of master use plan approval. Also in April 2015, we leased 300,000 RSF, or 100%, to Stripe, Inc. at 510 Townsend Street in our SoMa submarket of the San Francisco Bay Area. We expect to commence ground-up development of this build-to-suit project in 2015, upon receipt of Prop M entitlement allocation. In April 2015, we also leased 106,173 RSF, or 75%, to Eli Lilly and Company at our 10300 Campus Point Drive project in our University Town Center submarket in San Diego. We expect to commence ground-up development of our 142,034 RSF project in 2015, upon receipt of permits/approvals. | |
Interest rate swap agreements | |
We executed additional interest rate swap agreements in March and April 2015, with an aggregate notional amount of $750 million to increase notional hedged variable-rate debt to $950 million during 2015 and a minimum of $800 million during 2016. |
Condensed_consolidating_financ
Condensed consolidating financial information | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 of 1933, 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, 2015, and December 31, 2014, and the condensed consolidating statements of income, condensed consolidating statements of comprehensive income, and condensed consolidating statements of cash flows for the three months ended March 31, 2015 and 2014, for the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries, as well as 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, 2015 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 7,388,059 | $ | — | $ | 7,388,059 | ||||||||||
Cash and cash equivalents | 60,236 | 63 | 30,342 | — | 90,641 | |||||||||||||||
Restricted cash | 63 | — | 56,641 | — | 56,704 | |||||||||||||||
Tenant receivables | — | — | 10,627 | — | 10,627 | |||||||||||||||
Deferred rent | — | — | 243,459 | — | 243,459 | |||||||||||||||
Deferred leasing and financing costs | 33,537 | — | 166,039 | — | 199,576 | |||||||||||||||
Investments | — | 5,204 | 277,858 | — | 283,062 | |||||||||||||||
Investments in and advances to affiliates | 6,971,361 | 6,344,419 | 129,930 | (13,445,710 | ) | — | ||||||||||||||
Other assets | 21,651 | — | 111,442 | — | 133,093 | |||||||||||||||
Total assets | $ | 7,086,848 | $ | 6,349,686 | $ | 8,414,397 | $ | (13,445,710 | ) | $ | 8,405,221 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 760,476 | $ | — | $ | 760,476 | ||||||||||
Unsecured senior notes payable | 1,747,450 | — | — | — | 1,747,450 | |||||||||||||||
Unsecured senior line of credit | 421,000 | — | — | — | 421,000 | |||||||||||||||
Unsecured senior bank term loans | 975,000 | — | — | — | 975,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 104,315 | — | 541,304 | — | 645,619 | |||||||||||||||
Dividends payable | 58,535 | — | 289 | — | 58,824 | |||||||||||||||
Total liabilities | 3,306,300 | — | 1,302,069 | — | 4,608,369 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,282 | — | 14,282 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,780,548 | 6,349,686 | 7,096,024 | (13,445,710 | ) | 3,780,548 | ||||||||||||||
Noncontrolling interests | — | — | 2,022 | — | 2,022 | |||||||||||||||
Total equity | 3,780,548 | 6,349,686 | 7,098,046 | (13,445,710 | ) | 3,782,570 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 7,086,848 | $ | 6,349,686 | $ | 8,414,397 | $ | (13,445,710 | ) | $ | 8,405,221 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of December 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) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments in real estate | $ | — | $ | — | $ | 7,226,016 | $ | — | $ | 7,226,016 | ||||||||||
Cash and cash equivalents | 52,491 | 63 | 33,457 | — | 86,011 | |||||||||||||||
Restricted cash | 67 | — | 26,817 | — | 26,884 | |||||||||||||||
Tenant receivables | — | — | 10,548 | — | 10,548 | |||||||||||||||
Deferred rent | — | — | 234,124 | — | 234,124 | |||||||||||||||
Deferred leasing and financing costs | 35,462 | — | 166,336 | — | 201,798 | |||||||||||||||
Investments | — | 5,235 | 231,154 | — | 236,389 | |||||||||||||||
Investments in and advances to affiliates | 6,874,866 | 6,295,852 | 128,943 | (13,299,661 | ) | — | ||||||||||||||
Other assets | 19,461 | — | 94,805 | — | 114,266 | |||||||||||||||
Total assets | $ | 6,982,347 | $ | 6,301,150 | $ | 8,152,200 | $ | (13,299,661 | ) | $ | 8,136,036 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 652,209 | $ | — | $ | 652,209 | ||||||||||
Unsecured senior notes payable | 1,747,370 | — | — | — | 1,747,370 | |||||||||||||||
Unsecured senior line of credit | 304,000 | — | — | — | 304,000 | |||||||||||||||
Unsecured senior bank term loans | 975,000 | — | — | — | 975,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 69,013 | — | 420,072 | — | 489,085 | |||||||||||||||
Dividends payable | 58,525 | — | 289 | — | 58,814 | |||||||||||||||
Total liabilities | 3,153,908 | — | 1,072,570 | — | 4,226,478 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,315 | — | 14,315 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,828,439 | 6,301,150 | 6,998,511 | (13,299,661 | ) | 3,828,439 | ||||||||||||||
Noncontrolling interests | — | — | 66,804 | — | 66,804 | |||||||||||||||
Total equity | 3,828,439 | 6,301,150 | 7,065,315 | (13,299,661 | ) | 3,895,243 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,982,347 | $ | 6,301,150 | $ | 8,152,200 | $ | (13,299,661 | ) | $ | 8,136,036 | |||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 143,608 | $ | — | $ | 143,608 | ||||||||||
Tenant recoveries | — | — | 48,394 | — | 48,394 | |||||||||||||||
Other income | 3,026 | (41 | ) | 5,564 | (3,798 | ) | 4,751 | |||||||||||||
Total revenues | 3,026 | (41 | ) | 197,566 | (3,798 | ) | 196,753 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 61,223 | — | 61,223 | |||||||||||||||
General and administrative | 12,226 | — | 5,959 | (3,798 | ) | 14,387 | ||||||||||||||
Interest | 17,157 | — | 6,079 | — | 23,236 | |||||||||||||||
Depreciation and amortization | 1,247 | — | 57,673 | — | 58,920 | |||||||||||||||
Impairment of real estate | — | — | 14,510 | — | 14,510 | |||||||||||||||
Total expenses | 30,630 | — | 145,444 | (3,798 | ) | 172,276 | ||||||||||||||
Equity in earnings of unconsolidated joint ventures | — | — | 574 | — | 574 | |||||||||||||||
Equity in earnings of affiliates | 52,120 | 45,590 | 917 | (98,627 | ) | — | ||||||||||||||
Income from continuing operations | 24,516 | 45,549 | 53,613 | (98,627 | ) | 25,051 | ||||||||||||||
Loss from discontinued operations | — | — | (43 | ) | — | (43 | ) | |||||||||||||
Net income | 24,516 | 45,549 | 53,570 | (98,627 | ) | 25,008 | ||||||||||||||
Dividends on preferred stock | (6,247 | ) | — | — | — | (6,247 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (492 | ) | — | (492 | ) | |||||||||||||
Net income attributable to unvested restricted stock awards | (483 | ) | — | — | — | (483 | ) | |||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 17,786 | $ | 45,549 | $ | 53,078 | $ | (98,627 | ) | $ | 17,786 | |||||||||
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 | ||||||||||||||
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 | ||||||||||||||
Dividends on preferred stock | (6,471 | ) | — | — | — | (6,471 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (1,195 | ) | — | (1,195 | ) | |||||||||||||
Net income attributable to unvested restricted stock awards | (374 | ) | — | — | — | (374 | ) | |||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 32,709 | $ | 58,306 | $ | 63,653 | $ | (121,959 | ) | $ | 32,709 | |||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | 24,516 | $ | 45,549 | $ | 53,570 | $ | (98,627 | ) | $ | 25,008 | |||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Unrealized (losses) gains on marketable securities: | ||||||||||||||||||||
Unrealized holding (losses) gains arising during the period | — | (54 | ) | 28,489 | — | 28,435 | ||||||||||||||
Reclassification adjustment for losses included in net income | — | 41 | 1,062 | — | 1,103 | |||||||||||||||
Unrealized (losses) gains on marketable securities | — | (13 | ) | 29,551 | — | 29,538 | ||||||||||||||
Unrealized losses on interest rate swap agreements: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (3,013 | ) | — | — | — | (3,013 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 505 | — | — | — | 505 | |||||||||||||||
Unrealized losses on interest rate swap agreements | (2,508 | ) | — | — | — | (2,508 | ) | |||||||||||||
Unrealized gains on foreign currency translation: | ||||||||||||||||||||
Unrealized foreign currency translation losses during the period | — | — | (6,271 | ) | — | (6,271 | ) | |||||||||||||
Reclassification adjustment for losses included in net income | — | — | 9,236 | — | 9,236 | |||||||||||||||
Unrealized gains on foreign currency translation | — | — | 2,965 | — | 2,965 | |||||||||||||||
Total other comprehensive (loss) income | (2,508 | ) | (13 | ) | 32,516 | — | 29,995 | |||||||||||||
Comprehensive income | 22,008 | 45,536 | 86,086 | (98,627 | ) | 55,003 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (646 | ) | — | (646 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 22,008 | $ | 45,536 | $ | 85,440 | $ | (98,627 | ) | $ | 54,357 | |||||||||
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 income included in net income | (3,490 | ) | — | — | — | (3,490 | ) | |||||||||||||
Unrealized gains on interest rate swap agreements | 2,102 | — | — | — | 2,102 | |||||||||||||||
Unrealized 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’s common stockholders | $ | 41,656 | $ | 58,306 | $ | 79,326 | $ | (121,959 | ) | $ | 57,329 | |||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | 24,516 | $ | 45,549 | $ | 53,570 | $ | (98,627 | ) | $ | 25,008 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,247 | — | 57,673 | — | 58,920 | |||||||||||||||
Impairment of real estate | — | — | 14,510 | — | 14,510 | |||||||||||||||
Equity in earnings from unconsolidated joint ventures | — | — | (574 | ) | — | (574 | ) | |||||||||||||
Distributions of earnings from unconsolidated joint ventures | — | — | 491 | — | 491 | |||||||||||||||
Amortization of loan fees | 1,925 | — | 909 | — | 2,834 | |||||||||||||||
Amortization of debt discounts (premiums) | 80 | — | (162 | ) | — | (82 | ) | |||||||||||||
Amortization of acquired below market leases | — | — | (933 | ) | — | (933 | ) | |||||||||||||
Deferred rent | — | — | (9,901 | ) | — | (9,901 | ) | |||||||||||||
Stock compensation expense | 3,690 | — | — | — | 3,690 | |||||||||||||||
Equity in earnings of affiliates | (52,120 | ) | (45,590 | ) | (917 | ) | 98,627 | — | ||||||||||||
Investment gains | — | — | (5,937 | ) | — | (5,937 | ) | |||||||||||||
Investment losses | — | 41 | 2,184 | — | 2,225 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | 4 | — | (55 | ) | — | (51 | ) | |||||||||||||
Tenant receivables | — | — | (102 | ) | — | (102 | ) | |||||||||||||
Deferred leasing costs | — | — | (7,131 | ) | — | (7,131 | ) | |||||||||||||
Other assets | (3,437 | ) | — | 190 | — | (3,247 | ) | |||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 32,795 | (23 | ) | (5,651 | ) | — | 27,121 | |||||||||||||
Net cash provided by (used in) operating activities | 8,700 | (23 | ) | 98,164 | — | 106,841 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of real estate | — | — | 67,616 | — | 67,616 | |||||||||||||||
Additions to real estate | — | — | (104,632 | ) | — | (104,632 | ) | |||||||||||||
Purchase of real estate | — | — | (93,938 | ) | — | (93,938 | ) | |||||||||||||
Deposits for investing activities | — | — | (28,000 | ) | — | (28,000 | ) | |||||||||||||
Investment in unconsolidated real estate entities | — | — | (2,539 | ) | — | (2,539 | ) | |||||||||||||
Investments in subsidiaries | (44,375 | ) | (2,977 | ) | (70 | ) | 47,422 | — | ||||||||||||
Additions to investments | — | — | (15,118 | ) | — | (15,118 | ) | |||||||||||||
Sales of investments | — | — | 2,345 | — | 2,345 | |||||||||||||||
Repayment of notes receivable | — | — | 4,214 | — | 4,214 | |||||||||||||||
Net cash used in investing activities | $ | (44,375 | ) | $ | (2,977 | ) | $ | (170,122 | ) | $ | 47,422 | $ | (170,052 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 29,585 | $ | — | $ | 29,585 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (7,934 | ) | — | (7,934 | ) | |||||||||||||
Principal borrowings from unsecured senior line of credit | 167,000 | — | — | — | 167,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||
Transfer to/from parent company | (14,038 | ) | 3,000 | 58,460 | (47,422 | ) | — | |||||||||||||
Change in restricted cash related to financing activities | — | — | (1,369 | ) | — | (1,369 | ) | |||||||||||||
Loan fees | — | — | (563 | ) | — | (563 | ) | |||||||||||||
Dividends on common stock | (53,295 | ) | — | — | — | (53,295 | ) | |||||||||||||
Dividends on preferred stock | (6,247 | ) | — | — | — | (6,247 | ) | |||||||||||||
Contributions by noncontrolling interests | — | — | 340 | — | 340 | |||||||||||||||
Distributions to noncontrolling interests | — | — | (9,846 | ) | — | (9,846 | ) | |||||||||||||
Net cash provided by financing activities | 43,420 | 3,000 | 68,673 | (47,422 | ) | 67,671 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 170 | — | 170 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 7,745 | — | (3,115 | ) | — | 4,630 | ||||||||||||||
Cash and cash equivalents as of the beginning of period | 52,491 | 63 | 33,457 | — | 86,011 | |||||||||||||||
Cash and cash equivalents as of the end of period | $ | 60,236 | $ | 63 | $ | 30,342 | $ | — | $ | 90,641 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 10,412 | $ | — | $ | 5,102 | $ | — | $ | 15,514 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Change in accrued construction | $ | — | $ | — | $ | 7,249 | $ | — | $ | 7,249 | ||||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (82,000 | ) | $ | — | $ | (82,000 | ) | ||||||||
Non-Cash Financing Activities | ||||||||||||||||||||
Payable for purchase of noncontrolling interest | $ | — | $ | — | $ | (113,967 | ) | $ | — | $ | (113,967 | ) | ||||||||
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 (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,471 | — | 48,950 | — | 50,421 | |||||||||||||||
Amortization of loan fees | 1,770 | — | 791 | — | 2,561 | |||||||||||||||
Amortization of debt discounts | 40 | — | 165 | — | 205 | |||||||||||||||
Amortization of acquired below market leases | — | — | (816 | ) | — | (816 | ) | |||||||||||||
Deferred rent | — | — | (11,882 | ) | — | (11,882 | ) | |||||||||||||
Stock compensation expense | 3,228 | — | — | — | 3,228 | |||||||||||||||
Equity in earnings of affiliates | (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 real estate | — | — | (111,587 | ) | — | (111,587 | ) | |||||||||||||
Purchase of real estate | — | — | (42,338 | ) | — | (42,338 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (140 | ) | — | (140 | ) | |||||||||||||
Investment in unconsolidated joint venture | — | — | (747 | ) | — | (747 | ) | |||||||||||||
Investments in subsidiaries | (221,513 | ) | (193,863 | ) | (6,338 | ) | 421,714 | — | ||||||||||||
Additions to investments | — | — | (11,905 | ) | — | (11,905 | ) | |||||||||||||
Sales of investments | — | — | 3,998 | — | 3,998 | |||||||||||||||
Net cash used in 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 financing activities | — | — | 1,059 | — | 1,059 | |||||||||||||||
Loan fees | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Dividends on common stock | (48,715 | ) | — | 1 | — | (48,714 | ) | |||||||||||||
Dividends 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 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 as of the beginning of period | 14,790 | — | 42,906 | — | 57,696 | |||||||||||||||
Cash and cash equivalents as of the 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 construction | $ | — | $ | — | $ | (6,028 | ) | $ | — | $ | (6,028 | ) | ||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (48,329 | ) | $ | — | $ | (48,329 | ) | ||||||||
Basis_of_presentation_Policies
Basis of presentation (Policies) | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of presentation | Basis of presentation and consolidation | |
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. | ||
In certain circumstances, we may enter into joint venture arrangements with outside partners. On a quarterly basis, we evaluate each joint venture arrangement under the VIE model, and if the entity is determined not to be a VIE, then we evaluate the entity under the voting model to determine if the entity should be consolidated. | ||
Under the VIE model, an entity is determined to be a VIE if it has any of the following characteristics: | ||
• | The entity does not have sufficient equity to finance its activities without additional subordinated financial support; | |
• | The equity holders, as a group, lack the characteristics of a controlling financial interest; or | |
• | The legal entity is established with non-substantive voting rights. | |
If an entity is determined to be a VIE, we evaluate whether or not we are the primary beneficiary using qualitative analyses. Factors considered include, but are not limited to, the purpose and design of the VIE, risks that the VIE was designed to create and pass through, the form of our ownership interest, our representation on the entity’s governing body, the size and seniority of our investment, our ability to participate in policy-making decisions, and the rights of the other investors to participate in the decision-making process and/or liquidate the venture, if applicable. We consolidate VIEs whenever we determine that we are the primary beneficiary. | ||
If an entity is determined not to be a VIE, we then evaluate such entity under the voting model. Under the voting model, if we are the general partner or managing member, or have a similar role that can direct the operations of the entity, we have a presumption that we control the entity and we should consolidate regardless of our ownership percentage. If we determine that the other equity holders have any one of the following rights, it is assumed that we do not control the entity and therefore should not consolidate the entity: (i) the substantive ability to dissolve the entity or remove us from the lead role of the entity, or (ii) substantive rights that allow them to participate in the activities that most significantly impact the entity’s economic performance. | ||
As of March 31, 2015, we had two joint ventures that did not meet the requirements for consolidation and were accounted for under the equity method of accounting. Refer to Note 3 – “Investments in Real Estate,” appearing elsewhere in this quarterly report on Form 10-Q, for further information on our unconsolidated joint ventures. | ||
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. | ||
Investments in real estate, net, and discontinued operations | Investments in real estate and properties classified as “held for sale” | |
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 of an in-place lease, 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. Acquisition-related 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 terms 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 activity cease, interest, property taxes, insurance, and certain other costs would no longer be eligible for capitalization and would be expensed as incurred. Expenditures for repairs and maintenance are expensed as incurred. | ||
A property is classified as “held for sale” when all of the following criteria for a plan of sale have been met: (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. Depreciation of assets ceases upon designation of a property as “held for sale.” Prior to our adoption of the new discontinued operations standard on October 1, 2014, the operations of properties “held for sale” were classified as discontinued operations in our consolidated statements of income, and amounts for all prior periods presented were reclassified from continuing operations to discontinued operations. | ||
Subsequent to the adoption of the new standard, if the disposal of the property represents a strategic shift that has (or will have) a major effect on our operations or financial results, such as (i) a major line of business, (ii) a major geographical area, (iii) a major equity method investment, or (iv) other major parts of an entity, then the operations of the property “held for sale,” 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. The disposal of an individual property generally will not represent a strategic shift and therefore will typically not meet the criteria for classification as discontinued operations. | ||
Impairment of long-lived assets | Impairment of long-lived assets | |
Long-lived assets to be held and used, including our rental properties, CIP, land held for development, 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, CIP, and land held for development, are assessed by project and include significant fluctuations in estimated rental revenues less rental operating expenses, 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 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 unless our interest in the entity is deemed to be 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, 2015, and December 31, 2014, 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 might 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 (the “Code”). Under the Code, a REIT that distributes at least 90% of its REIT taxable income to its shareholders annually and meets certain other conditions is not subject to federal income taxes, but could be subject to certain state and local taxes. We distribute 100% of our taxable income annually; therefore, a provision for federal income taxes is not required. In addition to our REIT returns, we file federal, state, and local tax returns for our subsidiaries. We file with jurisdictions located in the U.S., Canada, India, China, and other international locations. Our tax returns are subject to routine examination in various jurisdictions for the calendar years 2010 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 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, common area expenses, 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 tenant receivables and deferred rent arising from the straight-lining of rent. As of March 31, 2015, and December 31, 2014, we had no allowance for uncollectible tenant receivables and deferred 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 client 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 science and technology industries, as well as in finance. Our 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 and other income | |
Interest and other income was $485 thousand and $862 thousand during the three months ended March 31, 2015 and 2014, respectively. Interest income is included in other income in the accompanying consolidated statements of income. | ||
Impact of recently issued accounting standards | Recent accounting pronouncements | |
In February 2015, the FASB issued an Accounting Standards Update that requires reporting entities to evaluate whether they should consolidate certain legal entities. The Accounting Standards Update modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This Accounting Standards Update affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity may apply the amendments in the Accounting Standards Update using: (i) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (ii) by applying the amendments retrospectively. We are currently assessing the potential impact that the adoption of the Accounting Standards Update will have on our consolidated financial statements. | ||
In April 2015, the FASB issued an Accounting Standards Update that requires reporting entities to present debt issuance costs as a direct deduction from the face amount of that note payable presented in the balance sheet. The Accounting Standards Update is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. A reporting entity is required to apply the amendments in the Accounting Standards Update retrospectively to all prior periods. We are currently assessing the potential impact that the adoption of the Accounting Standards Update will have on our consolidated financial statements. |
Background_Tables
Background (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Schedule of Square Feet by Property [Table Text Block] | Our asset base consisted of the following, as of March 31, 2015: | |||
Square Feet | ||||
Operating properties | 16,620,690 | |||
Development properties (includes unconsolidated joint ventures) | 1,763,531 | |||
Redevelopment properties | 143,777 | |||
Total operating and current value-creation projects | 18,527,998 | |||
Near-term value-creation projects (CIP) | 2,164,780 | |||
Future value-creation projects | 9,961,508 | |||
12,126,288 | ||||
Total | 30,654,286 | |||
Investments_in_real_estate_net1
Investments in real estate, net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Real Estate [Abstract] | |||||||||
Investments in real estate | Our investments in real estate consisted of the following as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||
31-Mar-15 | 31-Dec-14 | ||||||||
Land (related to rental properties) | $ | 679,070 | $ | 624,681 | |||||
Buildings and building improvements | 6,609,158 | 6,171,504 | |||||||
Other improvements | 221,535 | 192,128 | |||||||
Rental properties | 7,509,763 | 6,988,313 | |||||||
Current value-creation projects (CIP): | |||||||||
Current development in North America | 361,182 | 500,894 | |||||||
Current redevelopment in North America | 52,927 | 42,482 | |||||||
Current development in Asia | — | 14,065 | |||||||
414,109 | 557,441 | ||||||||
Rental properties and current value-creation projects | 7,923,872 | 7,545,754 | |||||||
Near-term value-creation projects in North America (CIP): | |||||||||
Alexandria Center® at Kendall Square – Binney Street (1) | 130,475 | 321,907 | |||||||
Other projects | 97,169 | 107,471 | |||||||
227,644 | 429,378 | ||||||||
Future value-creation projects: | |||||||||
North America | 190,407 | 175,175 | |||||||
Asia | 79,938 | 78,548 | |||||||
270,345 | 253,723 | ||||||||
Near-term and future value-creation projects | 497,989 | 683,101 | |||||||
Current, near-term, and future value-creation projects | 912,098 | 1,240,542 | |||||||
Gross investments in real estate | 8,421,861 | 8,228,855 | |||||||
Equity method of accounting – unconsolidated joint ventures | 120,028 | 117,406 | |||||||
Gross investments in real estate – including unconsolidated joint ventures | 8,541,889 | 8,346,261 | |||||||
Less: accumulated depreciation | (1,153,830 | ) | (1,120,245 | ) | |||||
Investments in real estate | $ | 7,388,059 | $ | 7,226,016 | |||||
-1 | Includes amounts related to 100 Binney Street as of March 31, 2015, and 50, 60, and 100 Binney Street as of December 31, 2014. |
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments [Abstract] | ||||||||
Summary of investments | The following table summarizes our investments as of March 31, 2015, and December 31, 2014 (in thousands): | |||||||
31-Mar-15 | 31-Dec-14 | |||||||
“Available-for-sale” marketable equity securities, cost basis | $ | 33,851 | $ | 21,898 | ||||
Unrealized gains | 83,513 | 53,625 | ||||||
Unrealized losses | (1,608 | ) | (1,258 | ) | ||||
“Available-for-sale” marketable equity securities, at fair value | 115,756 | 74,265 | ||||||
Investments accounted for under cost method | 167,306 | 162,124 | ||||||
Total investments | $ | 283,062 | $ | 236,389 | ||||
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, | ||||||||
2015 | 2014 | |||||||
Investment gains | $ | 5,937 | $ | 4,040 | ||||
Investment losses | (2,225 | ) | (1,694 | ) | ||||
Investment income | $ | 3,712 | $ | 2,346 | ||||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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, 2015, and December 31, 2014 (in thousands): | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
“Available-for-sale” securities | $ | 115,756 | $ | 115,756 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,417 | $ | — | $ | 3,417 | $ | — | |||||||||
31-Dec-14 | |||||||||||||||||
Description | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Other | Unobservable | |||||||||||||||
for Identical | Observable | Inputs | |||||||||||||||
Assets | Inputs | ||||||||||||||||
Assets: | |||||||||||||||||
“Available-for-sale” securities | $ | 74,265 | $ | 74,265 | $ | — | $ | — | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 909 | $ | — | $ | 909 | $ | — | |||||||||
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, 2015, and December 31, 2014, the book and estimated 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-15 | 31-Dec-14 | ||||||||||||||||
Book Value | Fair Value | Book Value | Fair Value | ||||||||||||||
Assets: | |||||||||||||||||
“Available-for-sale” marketable equity securities | $ | 115,756 | $ | 115,756 | $ | 74,265 | $ | 74,265 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate swap agreements | $ | 3,417 | $ | 3,417 | $ | 909 | $ | 909 | |||||||||
Secured notes payable | $ | 760,476 | $ | 794,432 | $ | 652,209 | $ | 693,338 | |||||||||
Unsecured senior notes payable | $ | 1,747,450 | $ | 1,823,090 | $ | 1,747,370 | $ | 1,793,255 | |||||||||
Unsecured senior line of credit | $ | 421,000 | $ | 421,279 | $ | 304,000 | $ | 304,369 | |||||||||
Unsecured senior bank term loans | $ | 975,000 | $ | 977,194 | $ | 975,000 | $ | 976,010 | |||||||||
Secured_and_unsecured_senior_d1
Secured and unsecured senior debt (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Summary of secured and unsecured debt | The following table summarizes our secured and unsecured senior debt as of March 31, 2015 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
Fixed-Rate/Hedged | Unhedged | Total | Percentage of Total Debt | Weighted Average | Weighted Average | ||||||||||||||||||||||||||||||||
Variable Rate | Variable Rate | Consolidated | Interest Rate at | Remaining Term | |||||||||||||||||||||||||||||||||
End of Period (1) | (in years) | ||||||||||||||||||||||||||||||||||||
Secured notes payable | $ | 482,663 | $ | 277,813 | $ | 760,476 | 19.5 | % | 4.3 | % | 3.1 | ||||||||||||||||||||||||||
Unsecured senior notes payable | 1,747,450 | — | 1,747,450 | 44.7 | 3.98 | 8.1 | |||||||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | — | 421,000 | 421,000 | 10.8 | 1.22 | 3.8 | |||||||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | 350,000 | 25,000 | 375,000 | 9.6 | 1.6 | 1.3 | |||||||||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | 600,000 | — | 600,000 | 15.4 | 1.71 | 3.8 | |||||||||||||||||||||||||||||||
Total/weighted average | $ | 3,180,113 | $ | 723,813 | $ | 3,903,926 | 100 | % | 3.17 | % | 5.3 | ||||||||||||||||||||||||||
Percentage of total debt | 81 | % | 19 | % | 100 | % | |||||||||||||||||||||||||||||||
-1 | Represents the weighted average 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. | ||||||||||||||||||||||||||||||||||||
Detail of secured and unsecured debt | The following table summarizes our outstanding indebtedness and respective principal maturities as of | ||||||||||||||||||||||||||||||||||||
March 31, 2015 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||
Stated | Weighted Average | Maturity Date(2) | Principal Payments Remaining for the Period Ending December 31, | ||||||||||||||||||||||||||||||||||
Debt | Rate | Interest Rate(1) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||||||||
Secured notes payable | |||||||||||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | % | 1.68 | % | 7/1/15 | (3) | $ | 46,983 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 46,983 | |||||||||||||||||
Greater Boston, San Francisco Bay Area, and San Diego | 5.73 | 5.73 | 1/1/16 | 1,356 | 75,501 | — | — | — | — | 76,857 | |||||||||||||||||||||||||||
Greater Boston, San Diego, and New York City | 5.82 | 5.82 | 4/1/16 | 741 | 29,389 | — | — | — | — | 30,130 | |||||||||||||||||||||||||||
San Diego | 5.74 | 3 | 4/15/16 | 132 | 6,916 | — | — | — | — | 7,048 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | 1.58 | 6/1/16 | — | 20,550 | — | — | — | — | 20,550 | |||||||||||||||||||||||||||
San Francisco Bay Area | 6.35 | 6.35 | 8/1/16 | 1,976 | 126,715 | — | — | — | — | 128,691 | |||||||||||||||||||||||||||
Maryland | 2.17 | 2.17 | 1/20/17 | — | — | 76,000 | — | — | — | 76,000 | |||||||||||||||||||||||||||
Greater Boston | L+1.35 | 1.53 | 8/23/17 | — | — | 134,280 | — | — | — | 134,280 | |||||||||||||||||||||||||||
San Diego, Maryland, and Seattle | 7.75 | 7.75 | 4/1/20 | 1,189 | 1,696 | 1,832 | 1,979 | 2,138 | 104,352 | 113,186 | |||||||||||||||||||||||||||
San Diego | 4.66 | 4.66 | 1/1/23 | 1,053 | 1,464 | 1,540 | 1,614 | 1,692 | 31,674 | 39,037 | |||||||||||||||||||||||||||
Greater Boston | 3.93 | 3.1 | 3/10/23 | — | — | — | 1,091 | 1,505 | 79,404 | 82,000 | |||||||||||||||||||||||||||
San Francisco Bay Area | 6.5 | 6.5 | 6/1/37 | 18 | 19 | 20 | 22 | 23 | 728 | 830 | |||||||||||||||||||||||||||
Unamortized premiums | 547 | 610 | 573 | 588 | 595 | 1,971 | 4,884 | ||||||||||||||||||||||||||||||
Secured notes payable weighted average/subtotal | 4.42 | % | 4.3 | 53,995 | 262,860 | 214,245 | 5,294 | 5,953 | 218,129 | 760,476 | |||||||||||||||||||||||||||
2016 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.6 | 7/31/16 | (4) | — | 375,000 | — | — | — | — | 375,000 | |||||||||||||||||||||||||
2019 Unsecured Senior Bank Term Loan | L+1.20 | % | 1.71 | 1/3/19 | — | — | — | — | 600,000 | — | 600,000 | ||||||||||||||||||||||||||
$1.5 billion unsecured senior line of credit | L+1.10 | % | (5) | 1.22 | 1/3/19 | — | — | — | — | 421,000 | — | 421,000 | |||||||||||||||||||||||||
Unsecured senior notes payable | 2.75 | % | 2.79 | 1/15/20 | — | — | — | — | — | 400,000 | 400,000 | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
Unsecured senior notes payable | 4.5 | % | 4.51 | 7/30/29 | — | — | — | — | — | 300,000 | 300,000 | ||||||||||||||||||||||||||
Unamortized discounts | (246 | ) | (337 | ) | (350 | ) | (362 | ) | (375 | ) | (880 | ) | (2,550 | ) | |||||||||||||||||||||||
Unsecured debt weighted average/subtotal | 2.93 | (246 | ) | 374,663 | (350 | ) | (362 | ) | 1,020,625 | 1,749,120 | 3,143,450 | ||||||||||||||||||||||||||
Weighted average/total | 3.17 | % | $ | 53,749 | $ | 637,523 | $ | 213,895 | $ | 4,932 | $ | 1,026,578 | $ | 1,967,249 | $ | 3,903,926 | |||||||||||||||||||||
Balloon payments | $ | 46,983 | $ | 632,449 | $ | 210,280 | $ | — | $ | 1,021,000 | $ | 1,954,466 | $ | 3,865,178 | |||||||||||||||||||||||
Principal amortization | 6,766 | 5,074 | 3,615 | 4,932 | 5,578 | 12,783 | 38,748 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 53,749 | $ | 637,523 | $ | 213,895 | $ | 4,932 | $ | 1,026,578 | $ | 1,967,249 | $ | 3,903,926 | |||||||||||||||||||||||
Fixed-rate/hedged variable-rate debt | $ | 6,766 | $ | 591,973 | $ | 3,615 | $ | 4,932 | $ | 605,578 | $ | 1,967,249 | $ | 3,180,113 | |||||||||||||||||||||||
Unhedged variable-rate debt | 46,983 | 45,550 | 210,280 | — | 421,000 | — | 723,813 | ||||||||||||||||||||||||||||||
Total consolidated debt | $ | 53,749 | $ | 637,523 | $ | 213,895 | $ | 4,932 | $ | 1,026,578 | $ | 1,967,249 | $ | 3,903,926 | |||||||||||||||||||||||
-1 | Represents the weighted average interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | ||||||||||||||||||||||||||||||||||||
-2 | Includes any extension options that we control. | ||||||||||||||||||||||||||||||||||||
-3 | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. We expect to exercise our option to extend the maturity date from July 1, 2015, to July 1, 2016. | ||||||||||||||||||||||||||||||||||||
-4 | We expect to partially repay a portion of this loan and extend the maturity date to 2021. | ||||||||||||||||||||||||||||||||||||
-5 | Our unsecured senior line of credit contains a feature that allows lenders to competitively bid on the interest rate for borrowings under the facility. This may result in an interest rate that is below the stated rate of L+1.10%. In addition to the cost of borrowing, the facility is subject to an annual facility fee of 0.20%, based on the aggregate commitments outstanding. | ||||||||||||||||||||||||||||||||||||
Schedule of interest expense incurred | Interest expense | ||||||||||||||||||||||||||||||||||||
The following table summarizes interest expense for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Gross interest | $ | 34,207 | $ | 31,136 | |||||||||||||||||||||||||||||||||
Capitalized interest | (10,971 | ) | (12,013 | ) | |||||||||||||||||||||||||||||||||
Interest expense | $ | 23,236 | $ | 19,123 | |||||||||||||||||||||||||||||||||
Summary of secured construction loans [Table Text Block] | The following table summarizes our secured construction loans as of March 31, 2015 (dollars in thousands): | ||||||||||||||||||||||||||||||||||||
Market | Stated Rate | Maturity Date | Outstanding Balance | Remaining Commitments | Total Commitments | ||||||||||||||||||||||||||||||||
San Francisco Bay Area | L+1.50 | % | 7/1/15 | (1) | $ | 46,983 | $ | 8,017 | $ | 55,000 | |||||||||||||||||||||||||||
San Francisco Bay Area | L+1.40 | % | 6/1/16 | (2) | 20,550 | 15,450 | 36,000 | ||||||||||||||||||||||||||||||
Greater Boston | L+1.35 | % | 8/23/17 | (3) | 134,280 | 116,120 | 250,400 | ||||||||||||||||||||||||||||||
$ | 201,813 | $ | 139,587 | $ | 341,400 | ||||||||||||||||||||||||||||||||
-1 | We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. We are in the process of exercising the first of two options to extend the maturity date from July 1, 2015 to July 1, 2016. | ||||||||||||||||||||||||||||||||||||
-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, 2015 | |||||||||||||||||||||||
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, 2015 (dollars in thousands): | ||||||||||||||||||||||
Number of Contracts | Weighted Average Interest Pay Rate (1) | Fair Value as of 3/31/15 | Notional Amount in Effect as of | ||||||||||||||||||||
Effective Date | Maturity Date | 3/31/15 | 12/31/15 | 12/31/16 | |||||||||||||||||||
31-Dec-14 | 31-Mar-16 | 3 | 0.53% | $ | (926 | ) | $ | 500,000 | $ | 500,000 | $ | — | |||||||||||
31-Mar-15 | 31-Mar-16 | 7 | 0.42% | (362 | ) | 450,000 | 450,000 | — | |||||||||||||||
31-Mar-16 | 31-Mar-17 | 5 | 1.35% | (2,129 | ) | — | — | 600,000 | |||||||||||||||
Total | $ | (3,417 | ) | $ | 950,000 | $ | 950,000 | $ | 600,000 | ||||||||||||||
-1 | In addition to the interest pay rate for each swap agreement, interest is payable at an applicable margin for borrowings outstanding as of March 31, 2015. Borrowings 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%. | ||||||||||||||||||||||
During April 2015, we executed additional interest rate swap agreements that were designated as cash flow hedges of interest rate risk (dollars in thousands): | |||||||||||||||||||||||
Number of Contracts | Weighted Average Interest Pay Rate (1) | Fair Value as of 3/31/15 | Notional Amount in Effect as of | ||||||||||||||||||||
Effective Date | Maturity Date | 3/31/15 | 12/31/15 | 12/31/16 | |||||||||||||||||||
31-Mar-16 | 31-Mar-17 | 4 | 0.93% | N/A | $ | — | $ | — | $ | 200,000 | |||||||||||||
-1 | In addition to the interest pay rate for each swap agreement, interest is payable at an applicable margin for borrowings outstanding as of March 31, 2015. Borrowings 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%. |
Accounts_payable_accrued_expen1
Accounts payable, accrued expenses and tenant security deposits (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Accounts payable, accrued expenses, and tenant security deposits [Abstract] | ||||||||
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accounts payable, accrued expenses, and tenant security deposits | |||||||
The following table summarizes the components of accounts payable, accrued expenses, and tenant security deposits as of March 31, 2015, and December 31, 2014 (in thousands): | ||||||||
March 31, | 31-Dec | |||||||
2015 | 2014 | |||||||
Accounts payable and accrued expenses | $ | 156,269 | $ | 127,828 | ||||
Accrued construction | 85,769 | 91,110 | ||||||
Acquired below market leases | 29,198 | 8,810 | ||||||
Conditional asset retirement obligations | 8,984 | 9,108 | ||||||
Deferred rent liabilities | 26,722 | 36,231 | ||||||
Interest rate swap liabilities | 3,417 | 909 | ||||||
Prepaid rent and tenant security deposits | 204,688 | 193,699 | ||||||
Other liabilities (1) | 130,572 | 21,390 | ||||||
Total | $ | 645,619 | $ | 489,085 | ||||
-1 | Our March 31, 2015, balance includes a noncontrolling interest purchase liability related to the $108.3 million acquisition of the outstanding 10% noncontrolling interest in our 1.2 million RSF, flagship campus at Alexandria Technology Square®. For additional information, refer to Note 11 – “Noncontrolling Interests” to our unaudited consolidated financial statements under Item 1 of this report. |
Earnings_per_share_Tables
Earnings per share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 EPS computations for the three months ended March 31, 2015 and 2014 (in thousands, except per share amounts): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Income from continuing operations | $ | 25,051 | $ | 40,911 | ||||
Dividends on preferred stock | (6,247 | ) | (6,471 | ) | ||||
Net income attributable to noncontrolling interests | (492 | ) | (1,195 | ) | ||||
Net income attributable to unvested restricted stock awards | (483 | ) | (374 | ) | ||||
Income from continuing operations attributable to Alexandria’s common stockholders – basic and diluted | 17,829 | 32,871 | ||||||
Loss from discontinued operations | (43 | ) | (162 | ) | ||||
Net income attributable to Alexandria’s common stockholders – basic and diluted | $ | 17,786 | $ | 32,709 | ||||
Weighted average shares of common stock outstanding – basic and diluted | 71,366 | 71,073 | ||||||
EPS attributable to Alexandria’s common stockholders – basic and diluted: | ||||||||
Continuing operations | $ | 0.25 | $ | 0.46 | ||||
Discontinued operations | — | — | ||||||
EPS – basic and diluted | $ | 0.25 | $ | 0.46 | ||||
Stockholders_equity_Tables
Stockholders' equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc. | Accumulated other comprehensive loss | ||||||||||||||||
Accumulated other comprehensive loss attributable to Alexandria, consists of the following (in thousands): | |||||||||||||||||
Unrealized Gain on Marketable Securities | Unrealized Loss on Interest Rate Swap Agreements | Unrealized Loss on Foreign Currency Translation | Total | ||||||||||||||
Balance as of December 31, 2014 | $ | 52,367 | $ | (909 | ) | $ | (52,086 | ) | $ | (628 | ) | ||||||
Other comprehensive income (loss) before reclassifications | 28,435 | (3,013 | ) | (6,271 | ) | 19,151 | |||||||||||
Amounts reclassified from other comprehensive income (loss) | 1,103 | 505 | 9,236 | 10,844 | |||||||||||||
Amounts attributable to noncontrolling interest | — | — | (154 | ) | (154 | ) | |||||||||||
Net other comprehensive income (loss) | 29,538 | (2,508 | ) | 2,811 | 29,841 | ||||||||||||
Balance as of March 31, 2015 | $ | 81,905 | $ | (3,417 | ) | $ | (49,275 | ) | $ | 29,213 | |||||||
Noncontrolling_interests_Nonco
Noncontrolling interests Noncontrolling Interests (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Noncontrolling Interest [Abstract] | |||||||||
Income from continuing operations and discontinued operations attributable to Alexandria Real Estate Equities, Inc. excluding amounts attributable to noncontrolling interests [Table Text Block] | The following table represents income from continuing operations and discontinued operations attributable to Alexandria Real Estate Equities, Inc., for the three months ended March 31, 2015 and 2014, excluding the amounts attributable to these noncontrolling interests: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Income from continuing operations attributable to Alexandria | $ | 24,559 | $ | 39,716 | |||||
Loss from discontinued operations | $ | (43 | ) | $ | (162 | ) |
Discontinued_operations_Tables
Discontinued operations (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||
Summary of net assets of discontinued operations and (loss) income from discontinued operations, net | |||||||||
March 31, 2015 | December 31, 2014 | ||||||||
Properties classified as “held for sale” | $ | 117,203 | $ | 173,706 | |||||
Other assets | 5,611 | 10,147 | |||||||
Total assets | 122,814 | 183,853 | |||||||
Total liabilities | — | (6,044 | ) | ||||||
Net assets classified as “held for sale” (1) | $ | 122,814 | $ | 177,809 | |||||
-1 | As of March 31, 2015, net assets classified as “held for sale” was composed of the three properties that were classified as “held for sale,” including one property classified as “held for sale” and included in discontinued operations prior to the adoption of the Accounting Standards Update described above. | ||||||||
The following is a summary of loss from discontinued operations related to each asset that met the criteria to be classified as discontinued operations prior to the adoption of the new Accounting Standards Update on October 1, 2014, for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenues | $ | — | $ | — | |||||
Operating expenses | (43 | ) | (162 | ) | |||||
Loss from discontinued operations (1) | $ | (43 | ) | $ | (162 | ) | |||
-1 | Loss from discontinued operations includes the results of operations (prior to disposition) of four properties classified as “held for sale” and included in discontinued operations prior to our adoption of the new Accounting Standards Update described above. One property is still classified as “held for sale” and included in discontinued operations as of March 31, 2015, and three properties were sold during the period from January 1, 2014, to March 31, 2015. | ||||||||
The following is a summary of the losses included in our income from continuing operations for the three months ended March 31, 2015 and 2014, from assets classified as “held for sale” subsequent to our adoption of the new Accounting Standards Update (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Total revenues | $ | 2,330 | $ | 2,500 | |||||
Operating expenses | (766 | ) | (701 | ) | |||||
Total revenues less operating expenses from assets classified as “held for sale,” not qualifying for classification as discontinued operations | 1,564 | 1,799 | |||||||
Depreciation expense | (127 | ) | (1,891 | ) | |||||
Impairment of real estate | (14,510 | ) | — | ||||||
Loss from assets classified as “held for sale,” not qualifying as discontinued operations (1) | $ | (13,073 | ) | $ | (92 | ) | |||
-1 | Includes the results of operations of two properties with an aggregate 234,186 RSF that were classified as “held for sale” as of March 31, 2015, and three properties with an aggregate 196,859 RSF that were sold during the three months ended March 31, 2015, but do not qualify for classification as discontinued operations. For additional information, refer to Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated financial statements under Item 1 of this report. |
Condensed_consolidating_financ1
Condensed consolidating financial information (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Consolidated Financial Information [Abstract] | ||||||||||||||||||||
Condensed consolidating balance sheet | Consolidating Balance Sheet | |||||||||||||||||||
as of March 31, 2015 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 7,388,059 | $ | — | $ | 7,388,059 | ||||||||||
Cash and cash equivalents | 60,236 | 63 | 30,342 | — | 90,641 | |||||||||||||||
Restricted cash | 63 | — | 56,641 | — | 56,704 | |||||||||||||||
Tenant receivables | — | — | 10,627 | — | 10,627 | |||||||||||||||
Deferred rent | — | — | 243,459 | — | 243,459 | |||||||||||||||
Deferred leasing and financing costs | 33,537 | — | 166,039 | — | 199,576 | |||||||||||||||
Investments | — | 5,204 | 277,858 | — | 283,062 | |||||||||||||||
Investments in and advances to affiliates | 6,971,361 | 6,344,419 | 129,930 | (13,445,710 | ) | — | ||||||||||||||
Other assets | 21,651 | — | 111,442 | — | 133,093 | |||||||||||||||
Total assets | $ | 7,086,848 | $ | 6,349,686 | $ | 8,414,397 | $ | (13,445,710 | ) | $ | 8,405,221 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 760,476 | $ | — | $ | 760,476 | ||||||||||
Unsecured senior notes payable | 1,747,450 | — | — | — | 1,747,450 | |||||||||||||||
Unsecured senior line of credit | 421,000 | — | — | — | 421,000 | |||||||||||||||
Unsecured senior bank term loans | 975,000 | — | — | — | 975,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 104,315 | — | 541,304 | — | 645,619 | |||||||||||||||
Dividends payable | 58,535 | — | 289 | — | 58,824 | |||||||||||||||
Total liabilities | 3,306,300 | — | 1,302,069 | — | 4,608,369 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,282 | — | 14,282 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,780,548 | 6,349,686 | 7,096,024 | (13,445,710 | ) | 3,780,548 | ||||||||||||||
Noncontrolling interests | — | — | 2,022 | — | 2,022 | |||||||||||||||
Total equity | 3,780,548 | 6,349,686 | 7,098,046 | (13,445,710 | ) | 3,782,570 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 7,086,848 | $ | 6,349,686 | $ | 8,414,397 | $ | (13,445,710 | ) | $ | 8,405,221 | |||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
as of December 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) | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Investments in real estate | $ | — | $ | — | $ | 7,226,016 | $ | — | $ | 7,226,016 | ||||||||||
Cash and cash equivalents | 52,491 | 63 | 33,457 | — | 86,011 | |||||||||||||||
Restricted cash | 67 | — | 26,817 | — | 26,884 | |||||||||||||||
Tenant receivables | — | — | 10,548 | — | 10,548 | |||||||||||||||
Deferred rent | — | — | 234,124 | — | 234,124 | |||||||||||||||
Deferred leasing and financing costs | 35,462 | — | 166,336 | — | 201,798 | |||||||||||||||
Investments | — | 5,235 | 231,154 | — | 236,389 | |||||||||||||||
Investments in and advances to affiliates | 6,874,866 | 6,295,852 | 128,943 | (13,299,661 | ) | — | ||||||||||||||
Other assets | 19,461 | — | 94,805 | — | 114,266 | |||||||||||||||
Total assets | $ | 6,982,347 | $ | 6,301,150 | $ | 8,152,200 | $ | (13,299,661 | ) | $ | 8,136,036 | |||||||||
Liabilities, Noncontrolling Interests, and Equity | ||||||||||||||||||||
Secured notes payable | $ | — | $ | — | $ | 652,209 | $ | — | $ | 652,209 | ||||||||||
Unsecured senior notes payable | 1,747,370 | — | — | — | 1,747,370 | |||||||||||||||
Unsecured senior line of credit | 304,000 | — | — | — | 304,000 | |||||||||||||||
Unsecured senior bank term loans | 975,000 | — | — | — | 975,000 | |||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 69,013 | — | 420,072 | — | 489,085 | |||||||||||||||
Dividends payable | 58,525 | — | 289 | — | 58,814 | |||||||||||||||
Total liabilities | 3,153,908 | — | 1,072,570 | — | 4,226,478 | |||||||||||||||
Redeemable noncontrolling interests | — | — | 14,315 | — | 14,315 | |||||||||||||||
Alexandria’s stockholders’ equity | 3,828,439 | 6,301,150 | 6,998,511 | (13,299,661 | ) | 3,828,439 | ||||||||||||||
Noncontrolling interests | — | — | 66,804 | — | 66,804 | |||||||||||||||
Total equity | 3,828,439 | 6,301,150 | 7,065,315 | (13,299,661 | ) | 3,895,243 | ||||||||||||||
Total liabilities, noncontrolling interests, and equity | $ | 6,982,347 | $ | 6,301,150 | $ | 8,152,200 | $ | (13,299,661 | ) | $ | 8,136,036 | |||||||||
Condensed consolidating statements of income | Condensed Consolidating Statement of Income | |||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 143,608 | $ | — | $ | 143,608 | ||||||||||
Tenant recoveries | — | — | 48,394 | — | 48,394 | |||||||||||||||
Other income | 3,026 | (41 | ) | 5,564 | (3,798 | ) | 4,751 | |||||||||||||
Total revenues | 3,026 | (41 | ) | 197,566 | (3,798 | ) | 196,753 | |||||||||||||
Expenses: | ||||||||||||||||||||
Rental operations | — | — | 61,223 | — | 61,223 | |||||||||||||||
General and administrative | 12,226 | — | 5,959 | (3,798 | ) | 14,387 | ||||||||||||||
Interest | 17,157 | — | 6,079 | — | 23,236 | |||||||||||||||
Depreciation and amortization | 1,247 | — | 57,673 | — | 58,920 | |||||||||||||||
Impairment of real estate | — | — | 14,510 | — | 14,510 | |||||||||||||||
Total expenses | 30,630 | — | 145,444 | (3,798 | ) | 172,276 | ||||||||||||||
Equity in earnings of unconsolidated joint ventures | — | — | 574 | — | 574 | |||||||||||||||
Equity in earnings of affiliates | 52,120 | 45,590 | 917 | (98,627 | ) | — | ||||||||||||||
Income from continuing operations | 24,516 | 45,549 | 53,613 | (98,627 | ) | 25,051 | ||||||||||||||
Loss from discontinued operations | — | — | (43 | ) | — | (43 | ) | |||||||||||||
Net income | 24,516 | 45,549 | 53,570 | (98,627 | ) | 25,008 | ||||||||||||||
Dividends on preferred stock | (6,247 | ) | — | — | — | (6,247 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (492 | ) | — | (492 | ) | |||||||||||||
Net income attributable to unvested restricted stock awards | (483 | ) | — | — | — | (483 | ) | |||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 17,786 | $ | 45,549 | $ | 53,078 | $ | (98,627 | ) | $ | 17,786 | |||||||||
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 | ||||||||||||||
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 | ||||||||||||||
Dividends on preferred stock | (6,471 | ) | — | — | — | (6,471 | ) | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (1,195 | ) | — | (1,195 | ) | |||||||||||||
Net income attributable to unvested restricted stock awards | (374 | ) | — | — | — | (374 | ) | |||||||||||||
Net income attributable to Alexandria’s common stockholders | $ | 32,709 | $ | 58,306 | $ | 63,653 | $ | (121,959 | ) | $ | 32,709 | |||||||||
Condensed consolidating statement comprehensive income | Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | 24,516 | $ | 45,549 | $ | 53,570 | $ | (98,627 | ) | $ | 25,008 | |||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Unrealized (losses) gains on marketable securities: | ||||||||||||||||||||
Unrealized holding (losses) gains arising during the period | — | (54 | ) | 28,489 | — | 28,435 | ||||||||||||||
Reclassification adjustment for losses included in net income | — | 41 | 1,062 | — | 1,103 | |||||||||||||||
Unrealized (losses) gains on marketable securities | — | (13 | ) | 29,551 | — | 29,538 | ||||||||||||||
Unrealized losses on interest rate swap agreements: | ||||||||||||||||||||
Unrealized interest rate swap losses arising during the period | (3,013 | ) | — | — | — | (3,013 | ) | |||||||||||||
Reclassification adjustment for amortization of interest expense included in net income | 505 | — | — | — | 505 | |||||||||||||||
Unrealized losses on interest rate swap agreements | (2,508 | ) | — | — | — | (2,508 | ) | |||||||||||||
Unrealized gains on foreign currency translation: | ||||||||||||||||||||
Unrealized foreign currency translation losses during the period | — | — | (6,271 | ) | — | (6,271 | ) | |||||||||||||
Reclassification adjustment for losses included in net income | — | — | 9,236 | — | 9,236 | |||||||||||||||
Unrealized gains on foreign currency translation | — | — | 2,965 | — | 2,965 | |||||||||||||||
Total other comprehensive (loss) income | (2,508 | ) | (13 | ) | 32,516 | — | 29,995 | |||||||||||||
Comprehensive income | 22,008 | 45,536 | 86,086 | (98,627 | ) | 55,003 | ||||||||||||||
Less: comprehensive income attributable to noncontrolling interests | — | — | (646 | ) | — | (646 | ) | |||||||||||||
Comprehensive income attributable to Alexandria’s common stockholders | $ | 22,008 | $ | 45,536 | $ | 85,440 | $ | (98,627 | ) | $ | 54,357 | |||||||||
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 income included in net income | (3,490 | ) | — | — | — | (3,490 | ) | |||||||||||||
Unrealized gains on interest rate swap agreements | 2,102 | — | — | — | 2,102 | |||||||||||||||
Unrealized 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’s common stockholders | $ | 41,656 | $ | 58,306 | $ | 79,326 | $ | (121,959 | ) | $ | 57,329 | |||||||||
Condensed consolidating statement cash flows | Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | 24,516 | $ | 45,549 | $ | 53,570 | $ | (98,627 | ) | $ | 25,008 | |||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,247 | — | 57,673 | — | 58,920 | |||||||||||||||
Impairment of real estate | — | — | 14,510 | — | 14,510 | |||||||||||||||
Equity in earnings from unconsolidated joint ventures | — | — | (574 | ) | — | (574 | ) | |||||||||||||
Distributions of earnings from unconsolidated joint ventures | — | — | 491 | — | 491 | |||||||||||||||
Amortization of loan fees | 1,925 | — | 909 | — | 2,834 | |||||||||||||||
Amortization of debt discounts (premiums) | 80 | — | (162 | ) | — | (82 | ) | |||||||||||||
Amortization of acquired below market leases | — | — | (933 | ) | — | (933 | ) | |||||||||||||
Deferred rent | — | — | (9,901 | ) | — | (9,901 | ) | |||||||||||||
Stock compensation expense | 3,690 | — | — | — | 3,690 | |||||||||||||||
Equity in earnings of affiliates | (52,120 | ) | (45,590 | ) | (917 | ) | 98,627 | — | ||||||||||||
Investment gains | — | — | (5,937 | ) | — | (5,937 | ) | |||||||||||||
Investment losses | — | 41 | 2,184 | — | 2,225 | |||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Restricted cash | 4 | — | (55 | ) | — | (51 | ) | |||||||||||||
Tenant receivables | — | — | (102 | ) | — | (102 | ) | |||||||||||||
Deferred leasing costs | — | — | (7,131 | ) | — | (7,131 | ) | |||||||||||||
Other assets | (3,437 | ) | — | 190 | — | (3,247 | ) | |||||||||||||
Accounts payable, accrued expenses, and tenant security deposits | 32,795 | (23 | ) | (5,651 | ) | — | 27,121 | |||||||||||||
Net cash provided by (used in) operating activities | 8,700 | (23 | ) | 98,164 | — | 106,841 | ||||||||||||||
Investing Activities | ||||||||||||||||||||
Proceeds from sale of real estate | — | — | 67,616 | — | 67,616 | |||||||||||||||
Additions to real estate | — | — | (104,632 | ) | — | (104,632 | ) | |||||||||||||
Purchase of real estate | — | — | (93,938 | ) | — | (93,938 | ) | |||||||||||||
Deposits for investing activities | — | — | (28,000 | ) | — | (28,000 | ) | |||||||||||||
Investment in unconsolidated real estate entities | — | — | (2,539 | ) | — | (2,539 | ) | |||||||||||||
Investments in subsidiaries | (44,375 | ) | (2,977 | ) | (70 | ) | 47,422 | — | ||||||||||||
Additions to investments | — | — | (15,118 | ) | — | (15,118 | ) | |||||||||||||
Sales of investments | — | — | 2,345 | — | 2,345 | |||||||||||||||
Repayment of notes receivable | — | — | 4,214 | — | 4,214 | |||||||||||||||
Net cash used in investing activities | $ | (44,375 | ) | $ | (2,977 | ) | $ | (170,122 | ) | $ | 47,422 | $ | (170,052 | ) | ||||||
Condensed Consolidating Statement of Cash Flows (continued) | ||||||||||||||||||||
for the Three Months Ended March 31, 2015 | ||||||||||||||||||||
(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 | $ | — | $ | — | $ | 29,585 | $ | — | $ | 29,585 | ||||||||||
Repayments of borrowings from secured notes payable | — | — | (7,934 | ) | — | (7,934 | ) | |||||||||||||
Principal borrowings from unsecured senior line of credit | 167,000 | — | — | — | 167,000 | |||||||||||||||
Repayments of borrowings from unsecured senior line of credit | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||
Transfer to/from parent company | (14,038 | ) | 3,000 | 58,460 | (47,422 | ) | — | |||||||||||||
Change in restricted cash related to financing activities | — | — | (1,369 | ) | — | (1,369 | ) | |||||||||||||
Loan fees | — | — | (563 | ) | — | (563 | ) | |||||||||||||
Dividends on common stock | (53,295 | ) | — | — | — | (53,295 | ) | |||||||||||||
Dividends on preferred stock | (6,247 | ) | — | — | — | (6,247 | ) | |||||||||||||
Contributions by noncontrolling interests | — | — | 340 | — | 340 | |||||||||||||||
Distributions to noncontrolling interests | — | — | (9,846 | ) | — | (9,846 | ) | |||||||||||||
Net cash provided by financing activities | 43,420 | 3,000 | 68,673 | (47,422 | ) | 67,671 | ||||||||||||||
Effect of foreign exchange rate changes on cash and cash equivalents | — | — | 170 | — | 170 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 7,745 | — | (3,115 | ) | — | 4,630 | ||||||||||||||
Cash and cash equivalents as of the beginning of period | 52,491 | 63 | 33,457 | — | 86,011 | |||||||||||||||
Cash and cash equivalents as of the end of period | $ | 60,236 | $ | 63 | $ | 30,342 | $ | — | $ | 90,641 | ||||||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||||||||||
Cash paid during the period for interest, net of interest capitalized | $ | 10,412 | $ | — | $ | 5,102 | $ | — | $ | 15,514 | ||||||||||
Non-Cash Investing Activities | ||||||||||||||||||||
Change in accrued construction | $ | — | $ | — | $ | 7,249 | $ | — | $ | 7,249 | ||||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (82,000 | ) | $ | — | $ | (82,000 | ) | ||||||||
Non-Cash Financing Activities | ||||||||||||||||||||
Payable for purchase of noncontrolling interest | $ | — | $ | — | $ | (113,967 | ) | $ | — | $ | (113,967 | ) | ||||||||
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 (used in) provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,471 | — | 48,950 | — | 50,421 | |||||||||||||||
Amortization of loan fees | 1,770 | — | 791 | — | 2,561 | |||||||||||||||
Amortization of debt discounts | 40 | — | 165 | — | 205 | |||||||||||||||
Amortization of acquired below market leases | — | — | (816 | ) | — | (816 | ) | |||||||||||||
Deferred rent | — | — | (11,882 | ) | — | (11,882 | ) | |||||||||||||
Stock compensation expense | 3,228 | — | — | — | 3,228 | |||||||||||||||
Equity in earnings of affiliates | (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 real estate | — | — | (111,587 | ) | — | (111,587 | ) | |||||||||||||
Purchase of real estate | — | — | (42,338 | ) | — | (42,338 | ) | |||||||||||||
Change in restricted cash related to construction projects | — | — | (140 | ) | — | (140 | ) | |||||||||||||
Investment in unconsolidated joint venture | — | — | (747 | ) | — | (747 | ) | |||||||||||||
Investments in subsidiaries | (221,513 | ) | (193,863 | ) | (6,338 | ) | 421,714 | — | ||||||||||||
Additions to investments | — | — | (11,905 | ) | — | (11,905 | ) | |||||||||||||
Sales of investments | — | — | 3,998 | — | 3,998 | |||||||||||||||
Net cash used in 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 financing activities | — | — | 1,059 | — | 1,059 | |||||||||||||||
Loan fees | — | — | (8 | ) | — | (8 | ) | |||||||||||||
Dividends on common stock | (48,715 | ) | — | 1 | — | (48,714 | ) | |||||||||||||
Dividends 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 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 as of the beginning of period | 14,790 | — | 42,906 | — | 57,696 | |||||||||||||||
Cash and cash equivalents as of the 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 construction | $ | — | $ | — | $ | (6,028 | ) | $ | — | $ | (6,028 | ) | ||||||||
Assumption of secured notes payable in connection with purchase of properties | $ | — | $ | — | $ | (48,329 | ) | $ | — | $ | (48,329 | ) | ||||||||
Background_Details
Background (Details) (USD $) | 3 Months Ended |
In Billions, unless otherwise specified | Mar. 31, 2015 |
Nature of Business [Line Items] | |
Total Square Footage of Asset Base | 30,700,000 |
Total Market Capitalization | 11.3 |
Investment-grade client tenants as a percentage of total annualized base rent | 52.00% |
Percentage of leases containing effective annual rent escalations | 94.00% |
Percentage of leases which are triple net leases | 95.00% |
Percentage of leases providing for recapture of certain capital expenditures | 93.00% |
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, 2015 |
sqft | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 18,527,998 |
Square Footage of Real Estate Property, Future Development | 12,126,288 |
Total Rentable Square Footage of Asset Base | 30,654,286 |
Operating properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 16,620,690 |
Development [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 1,763,531 |
Redevelopment [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 143,777 |
Near-term value-creation projects in North America (CIP) | |
Real Estate Properties [Line Items] | |
Square Footage of Real Estate Property, Future Development | 2,164,780 |
Land held for future development in North America | |
Real Estate Properties [Line Items] | |
Square Footage of Real Estate Property, Future Development | 9,961,508 |
Basis_of_presentation_Details
Basis of presentation (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Property, plant and equipment depreciated on a straight-line basis using an estimated life | |||
Number of unconsolidated joint ventures | 2 | ||
Percent of Taxable Income, Generally Distributed as Dividend | 90.00% | ||
Maximum Expected Period for Collection of Receivables | 1 year | ||
Basis of presentation | |||
Maximum expected period of sale of property (in years) | 1 year | ||
Cost method investment ownership percentage | 10.00% | 10.00% | |
Minimum percentage of taxable income to be distributed | 100.00% | ||
Interest income included in other income | $485,000 | $862,000 | |
Allowance for Doubtful Accounts Receivable | $0 | $0 | |
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, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Real Estate Properties [Line Items] | ||
Land | $679,070 | $624,681 |
Rental properties | 7,509,763 | 6,988,313 |
Land/future value-added projects: | ||
Land available for development | 497,989 | 683,101 |
Real Estate Investment Property, at Cost | 8,421,861 | 8,228,855 |
Less: accumulated depreciation | -1,153,830 | -1,120,245 |
Equity Method Investments | 120,028 | 117,406 |
Real Estate Investments Property, including Unconsolidated Joint Ventures, at Cost | 8,541,889 | 8,346,261 |
Investments in real estate, net | 7,388,059 | 7,226,016 |
Investment Building and Building Improvements | 6,609,158 | 6,171,504 |
Improvements Others | 221,535 | 192,128 |
Construction in progress ("CIP")/current value-added projects: | ||
Construction in progress ("CIP")/current value-added projects: | ||
Development in process | 414,109 | 557,441 |
Active development in North America | North America [Member] | ||
Construction in progress ("CIP")/current value-added projects: | ||
Development in process | 361,182 | 500,894 |
Active redevelopment in North America | North America [Member] | ||
Construction in progress ("CIP")/current value-added projects: | ||
Development in process | 52,927 | 42,482 |
Active development and redevelopment in Asia | Asia [Member] | ||
Construction in progress ("CIP")/current value-added projects: | ||
Development in process | 0 | 14,065 |
Current, Near-Term and Future Value-Creation Projects [Member] | ||
Land/future value-added projects: | ||
Real Estate Investment Property, at Cost | 7,923,872 | 7,545,754 |
Land undergoing predevelopment activities (CIP) in North America (2) | ||
Land/future value-added projects: | ||
Land available for development | 227,644 | 429,378 |
Land held for future development in North America | ||
Land/future value-added projects: | ||
Land available for development | 270,345 | 253,723 |
Land held for future development in North America | North America [Member] | ||
Land/future value-added projects: | ||
Land available for development | 190,407 | 175,175 |
Land held for future development in North America | Asia [Member] | ||
Land/future value-added projects: | ||
Land available for development | 79,938 | 78,548 |
Current, Near-Term and Future Value-Creation Projects [Member] | ||
Land/future value-added projects: | ||
Real Estate Investment Property, at Cost | 912,098 | 1,240,542 |
50, 60, and 100 Binney Street Project [Member] | Land undergoing predevelopment activities (CIP) in North America (2) | North America [Member] | ||
Land/future value-added projects: | ||
Land available for development | 130,475 | 321,907 |
Other Projects in North America [Member] | Land undergoing predevelopment activities (CIP) in North America (2) | North America [Member] | ||
Land/future value-added projects: | ||
Land available for development | $97,169 | $107,471 |
Investments_in_real_estate_net3
Investments in real estate, net Acquisitions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
sqft | ||
Business Acquisition [Line Items] | ||
Area of Real Estate Property | 18,527,998 | |
Assumption of secured notes payable in connection with purchase of properties | $82,000,000 | $48,329,000 |
640 Memorial Drive [Member] | ||
Business Acquisition [Line Items] | ||
Payments to acquire real estate property | 176,500,000 | |
Area of Real Estate Property | 225,504 | |
Real Estate, Leased Percentage | 100.00% | |
Assumption of secured notes payable in connection with purchase of properties | $82,000,000 | |
Secured debt maturing in 2023 [Member] | 640 Memorial Drive [Member] | ||
Business Acquisition [Line Items] | ||
Stated interest rate (as a percent) | 3.93% |
Investments_in_real_estate_net4
Investments in real estate, net Development and redevelopment projects (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | sqft | |
Real Estate Properties [Line Items] | ||
Land available for development | $497,989 | $683,101 |
Area of Real Estate Property | 18,527,998 | |
Square Footage of Real Estate Property, Future Development | 12,126,288 | |
Land Held for Future Development [Member] | ||
Real Estate Properties [Line Items] | ||
Land available for development | 270,300 | |
Square Footage of Real Estate Property, Future Development | 10,000,000 | |
Near-term value-creation projects in North America (CIP) | ||
Real Estate Properties [Line Items] | ||
Land available for development | $227,600 | |
Area of Real Estate Property | 2,164,780 | |
Development [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 7 | |
Redevelopment [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 2 | |
North America [Member] | Development [Member] | ||
Real Estate Properties [Line Items] | ||
Area of Real Estate Property | 1,800,000 | |
North America [Member] | Redevelopment [Member] | ||
Real Estate Properties [Line Items] | ||
Area of Real Estate Property | 143,777 |
Investments_in_real_estate_net5
Investments in real estate, net Investment in unconsolidated entity (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Rate | ||
sqft | ||
Schedule of Equity Method Investments [Line Items] | ||
Area of Real Estate Property | 18,527,998 | |
Equity Method Investments | $120,028,000 | $117,406,000 |
INDIA | ||
Schedule of Equity Method Investments [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 4,200,000 | |
Secured Debt from Bank Maturing on 1 April 2017 [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt Instrument, Number of One-Year Maturity Date Extension Option | 2 | |
Longwood [Member] | Greater Boston market | ||
Schedule of Equity Method Investments [Line Items] | ||
Area of Real Estate Property | 413,536 | |
Expected Total Joint Venture Development Cost | 350,000,000 | |
Longwood [Member] | Greater Boston market | ||
Schedule of Equity Method Investments [Line Items] | ||
Real estate occupancy percentage | 38.00% | |
Real Estate, Lease Negotiating Percentage | 25.00% | |
Equity Method Investments | 49,200,000 | |
Longwood [Member] | Greater Boston market | Equity Method Investee | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest percentage (in percent) | 27.50% | |
Longwood [Member] | Aggregate Commitments [Member] | Greater Boston market | ||
Schedule of Equity Method Investments [Line Items] | ||
Long-term Construction Loan | 213,200,000 | |
Longwood [Member] | Outstanding Balance [Member] | Greater Boston market | ||
Schedule of Equity Method Investments [Line Items] | ||
Long-term Construction Loan | 166,500,000 | |
Longwood [Member] | Remaining Commitments [Member] | Greater Boston market | ||
Schedule of Equity Method Investments [Line Items] | ||
Long-term Construction Loan | 46,700,000 | |
1455/1515 Third Street [Member] | San Franciso Bay Area [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Area of Real Estate Property | 422,980 | |
Real estate occupancy percentage | 100.00% | |
Length of Lease | 15 years | |
Equity Method Investments | 70,800,000 | |
1455/1515 Third Street [Member] | San Franciso Bay Area [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Payments to acquire real estate property | $125,000,000 | |
Alexandria [Member] | 1455/1515 Third Street [Member] | San Franciso Bay Area [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest percentage (in percent) | 51.00% | |
Uber Technologies, Inc. [Member] | 1455/1515 Third Street [Member] | San Franciso Bay Area [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity interest percentage (in percent) | 49.00% | |
Leases under negotiation [Member] | Longwood [Member] | Greater Boston market | ||
Schedule of Equity Method Investments [Line Items] | ||
Area of Real Estate Property | 103,752 |
Investments_in_real_estate_net6
Investments in real estate, net Land undergoing predevelopment and future development (Details) | Mar. 31, 2015 |
sqft | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 18,527,998 |
Near-term value-creation projects in North America (CIP) | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 2,164,780 |
Investments_in_real_estate_net7
Investments in real estate, net Dispositions (Details) (USD $) | 3 Months Ended | 13 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | |
sqft | sqft | |||
Dispositions [Line Items] | ||||
Area of Real Estate Property | 18,527,998 | 18,527,998 | ||
Impairment of Real Estate | $14,510,000 | $0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | -9,236,000 | 0 | ||
INDIA | ||||
Dispositions [Line Items] | ||||
Foreign Currency Exchange Rate, Translation | 4,200,000 | 4,200,000 | ||
Proceeds from Sale of Real Estate | 12,400,000 | |||
Impairment of Real Estate | 14,500,000 | |||
Development [Member] | North America [Member] | ||||
Dispositions [Line Items] | ||||
Area of Real Estate Property | 1,800,000 | 1,800,000 | ||
Development [Member] | India Properties [Member] | ||||
Dispositions [Line Items] | ||||
Area of Real Estate Property | 175,000 | |||
Near-term value-creation projects in North America (CIP) | ||||
Dispositions [Line Items] | ||||
Area of Real Estate Property | 2,164,780 | 2,164,780 | ||
Land and Land Improvements [Member] | CANADA | ||||
Dispositions [Line Items] | ||||
Proceeds from Sale of Real Estate | 54,100,000 | |||
Income-producing assets [Member] | PENNSYLVANIA | ||||
Dispositions [Line Items] | ||||
Proceeds from Sale of Real Estate | $1,900,000 | |||
Area of Real Estate Property | 21,859 | 21,859 |
Investments_Summary_of_Investm
Investments Summary of Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
“Available-for-sale†marketable equity securities, cost basis | $33,851 | $21,898 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 83,513 | 53,625 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | -1,608 | -1,258 |
“Available-for-sale†marketable equity securities, at fair value | 115,756 | 74,265 |
Investments accounted for under cost method | 167,306 | 162,124 |
Investments | $283,062 | $236,389 |
Investments_Investment_Income_
Investments Investment Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Investments [Abstract] | ||
Gain on Sale of Investments | $5,937 | $4,040 |
Investment losses | -2,225 | -1,694 |
Investment income | $3,712 | $2,346 |
Fair_value_measurements_Assets
Fair value measurements Assets and Liabilities on Recurring Basis (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | |||
Transfers in Fair Value Hierarchy | 0 | 0 | |
Assets: | |||
“Available-for-sale†securities | $115,756 | $74,265 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 | |
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets | |||
Assets: | |||
“Available-for-sale†securities | 115,756 | 74,265 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 | |
Fair value measured on recurring basis | Significant Other Observable Inputs | |||
Assets: | |||
“Available-for-sale†securities | 0 | 0 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 | |
Fair value measured on recurring basis | Significant Other Observable Inputs | |||
Assets: | |||
“Available-for-sale†securities | 0 | 0 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 | |
Estimate of Fair Value Measurement [Member] | |||
Assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | |||
Senior Notes Fair Value Disclosure | 1,823,090 | 1,793,255 | |
Unsecured Bank Term Loans Fair Value Disclosure | 977,194 | 976,010 | |
Assets: | |||
“Available-for-sale†securities | 115,756 | 74,265 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 | |
Estimate of Fair Value Measurement [Member] | Fair value measured on recurring basis | |||
Assets: | |||
“Available-for-sale†securities | 115,756 | 74,265 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 | |
Book Value | |||
Assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | |||
Senior Notes Fair Value Disclosure | 1,747,450 | 1,747,370 | |
Unsecured Bank Term Loans Fair Value Disclosure | 975,000 | 975,000 | |
Assets: | |||
“Available-for-sale†securities | 115,756 | 74,265 | |
Liabilities: | |||
Interest Rate Derivative Liabilities, at Fair Value | $3,417 | $909 |
Fair_value_measurements_Book_a
Fair value measurements Book and Fair Values (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | $115,756 | $74,265 |
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 |
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 | 115,756 | 74,265 |
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 |
Secured notes payable | 760,476 | 652,209 |
Senior Notes Fair Value Disclosure | 1,747,450 | 1,747,370 |
Unsecured senior line of credit | 421,000 | 304,000 |
Unsecured Bank Term Loans Fair Value Disclosure | 975,000 | 975,000 |
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 | 115,756 | 74,265 |
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 |
Secured notes payable | 794,432 | 693,338 |
Senior Notes Fair Value Disclosure | 1,823,090 | 1,793,255 |
Unsecured senior line of credit | 421,279 | 304,369 |
Unsecured Bank Term Loans Fair Value Disclosure | $977,194 | $976,010 |
Secured_and_unsecured_senior_d2
Secured and unsecured senior debt Narratives (Details) (MARYLAND) | Mar. 31, 2015 |
MARYLAND | |
Debt Instrument [Line Items] | |
Effective rate (as a percent) | 4.50% |
Secured_and_unsecured_senior_d3
Secured and unsecured senior debt Summary of secured and unsecured debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Debt Instrument [Line Items] | ||
Fixed Rate/Hedged Variable Rate | $3,180,113 | |
Unhedged Variable rate | 723,813 | |
Total Consolidated | 3,903,926 | |
Percentage of Total | 100.00% | |
Total consolidated debt, Effective Interest | 3.17% | [1] |
Weighted Average Remaining Terms (in years) | 5 years 3 months 18 days | |
Percentage of fixed rate/hedged total debt | 81.00% | |
Percentage of unhedged floating rate total debt | 19.00% | |
Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Number of One-Year Maturity Date Extension Option | 2 | |
Outstanding Balance | 46,983 | |
Weighted Average Interest Rate at End of Period | 1.68% | [1] |
Secured notes payable | ||
Debt Instrument [Line Items] | ||
Fixed Rate/Hedged Variable Rate | 482,663 | |
Unhedged Variable rate | 277,813 | |
Total Consolidated | 760,476 | |
Percentage of Total | 19.50% | |
Weighted Average Interest Rate at End of Period | 4.30% | [2] |
Weighted Average Remaining Terms (in years) | 3 years 1 month 6 days | |
Stated interest rate (as a percent) | 4.42% | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Fixed Rate/Hedged Variable Rate | 1,747,450 | |
Unhedged Variable rate | 0 | |
Total Consolidated | 1,747,450 | |
Percentage of Total | 44.70% | |
Weighted Average Interest Rate at End of Period | 3.98% | |
Weighted Average Remaining Terms (in years) | 8 years 1 month 6 days | |
$1.5 billion unsecured senior line of credit | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 421,000 | |
Fixed Rate/Hedged Variable Rate | 0 | |
Unhedged Variable rate | 421,000 | |
Total Consolidated | 421,000 | |
Percentage of Total | 10.80% | |
Weighted Average Interest Rate at End of Period | 1.22% | [2] |
Weighted Average Remaining Terms (in years) | 3 years 9 months 18 days | |
2016 Unsecured Senior Bank Term Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 375,000 | |
Fixed Rate/Hedged Variable Rate | 350,000 | |
Unhedged Variable rate | 25,000 | |
Total Consolidated | 375,000 | |
Percentage of Total | 9.60% | |
Weighted Average Interest Rate at End of Period | 1.60% | [2] |
Weighted Average Remaining Terms (in years) | 1 year 3 months 18 days | |
2019 Unsecured Senior Bank Term Loan | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | 600,000 | |
Fixed Rate/Hedged Variable Rate | 600,000 | |
Unhedged Variable rate | 0 | |
Total Consolidated | $600,000 | |
Percentage of Total | 15.40% | |
Weighted Average Interest Rate at End of Period | 1.71% | [2] |
Weighted Average Remaining Terms (in years) | 3 years 9 months 18 days | |
[1] | (1)Represents the weighted average 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] | Represents the weighted average 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 Detail of secured and unsecured debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | |
Extension_Option | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | $3,180,113 | |
Unhedged Variable rate | 723,813 | |
Total Consolidated | 3,903,926 | |
Total consolidated debt, Effective Interest | 3.17% | [1] |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 3,865,178 | |
Debt Instrument, Annual Principal Payment | 38,748 | |
2015 | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 6,766 | |
Unhedged Variable rate | 46,983 | |
Total Consolidated | 53,749 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 46,983 | |
Debt Instrument, Annual Principal Payment | 6,766 | |
2016 | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 591,973 | |
Unhedged Variable rate | 45,550 | |
Total Consolidated | 637,523 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 632,449 | |
Debt Instrument, Annual Principal Payment | 5,074 | |
2017 | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 3,615 | |
Unhedged Variable rate | 210,280 | |
Total Consolidated | 213,895 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 210,280 | |
Debt Instrument, Annual Principal Payment | 3,615 | |
2018 | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 4,932 | |
Unhedged Variable rate | 0 | |
Total Consolidated | 4,932 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 0 | |
Debt Instrument, Annual Principal Payment | 4,932 | |
2019 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 605,578 | |
Unhedged Variable rate | 421,000 | |
Total Consolidated | 1,026,578 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 1,021,000 | |
Debt Instrument, Annual Principal Payment | 5,578 | |
Maturity Date After 2019 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 1,967,249 | |
Unhedged Variable rate | 0 | |
Total Consolidated | 1,967,249 | |
Debt Instrument, Periodic Payment Terms, Balloon Payment to be Paid | 1,954,466 | |
Debt Instrument, Annual Principal Payment | 12,783 | |
Secured notes payable | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 482,663 | |
Unhedged Variable rate | 277,813 | |
Total Consolidated | 760,476 | |
Stated interest rate (as a percent) | 4.42% | |
Effective rate (as a percent) | 4.30% | [2] |
Future principal payments due on secured and unsecured debt | ||
Due Current Year | 53,995 | |
Due Next Year | 262,860 | |
Due Year Three | 214,245 | |
Due Year Four | 5,294 | |
Due Year Five | 5,953 | |
Thereafter | 218,129 | |
Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Effective rate (as a percent) | 1.68% | [1] |
Maturity Date | 1-Jul-15 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 46,983 | |
Number of extensions available under line of credit | 2 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 46,983 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,356 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 75,501 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 76,857 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 741 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 29,389 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 30,130 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 132 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 6,916 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 7,048 | |
Secured notes payable maturing on 06/1/16 | ||
Summary of fixed rate/hedged and floating rate debt | ||
Effective rate (as a percent) | 1.58% | [1] |
Maturity Date | 1-Jun-16 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Number of extensions available under line of credit | 2 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 20,550 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 20,550 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,976 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 126,715 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 128,691 | |
Secured Debt from Bank Maturing on 20 January 2017 | ||
Summary of fixed rate/hedged and floating rate debt | ||
Stated interest rate (as a percent) | 2.17% | |
Effective rate (as a percent) | 2.17% | [1] |
Maturity Date | 20-Jan-17 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 76,000 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 76,000 | |
Secured Debt Maturing on 23 August 2017 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Effective rate (as a percent) | 1.53% | [1] |
Maturity Date | 23-Aug-17 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Number of extensions available under line of credit | 1 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 134,280 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 134,280 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,189 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 1,696 | |
Due Year Three | 1,832 | |
Due Year Four | 1,979 | |
Due Year Five | 2,138 | |
Thereafter | 104,352 | |
Outstanding Balance | 113,186 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,053 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 1,464 | |
Due Year Three | 1,540 | |
Due Year Four | 1,614 | |
Due Year Five | 1,692 | |
Thereafter | 31,674 | |
Outstanding Balance | 39,037 | |
Secured debt maturing in 2023 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Stated interest rate (as a percent) | 3.93% | |
Effective rate (as a percent) | 3.10% | [1] |
Maturity Date | 10-Mar-23 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 1,091 | |
Due Year Five | 1,505 | |
Thereafter | 79,404 | |
Outstanding Balance | 82,000 | |
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 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 18 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 19 | |
Due Year Three | 20 | |
Due Year Four | 22 | |
Due Year Five | 23 | |
Thereafter | 728 | |
Outstanding Balance | 830 | |
Unamortized Premiums | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 4,884 | |
Unamortized Premiums | 2015 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 547 | |
Unamortized Premiums | 2016 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 610 | |
Unamortized Premiums | 2017 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 573 | |
Unamortized Premiums | 2018 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 588 | |
Unamortized Premiums | 2019 [Member] | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 595 | |
Unamortized Premiums | Maturity Date After 2019 [Member] | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized premium | 1,971 | |
Unsecured Debt | ||
Summary of fixed rate/hedged and floating rate debt | ||
Total Consolidated | 3,143,450 | |
Effective rate (as a percent) | 2.93% | [1] |
Unsecured Debt | 2015 | ||
Future principal payments due on secured and unsecured debt | ||
Due Current Year | 246 | |
Unsecured Debt | 2016 | ||
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 374,663 | |
Unsecured Debt | 2017 | ||
Future principal payments due on secured and unsecured debt | ||
Due Year Three | 350 | |
Unsecured Debt | 2018 | ||
Future principal payments due on secured and unsecured debt | ||
Due Year Four | 362 | |
Unsecured Debt | 2019 [Member] | ||
Future principal payments due on secured and unsecured debt | ||
Due Year Five | 1,020,625 | |
Unsecured Debt | Maturity Date After 2019 [Member] | ||
Future principal payments due on secured and unsecured debt | ||
Thereafter | 1,749,120 | |
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 | 25,000 | |
Total Consolidated | 375,000 | |
Effective rate (as a percent) | 1.60% | [2] |
Maturity Date | 31-Jul-16 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 375,000 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 0 | |
Outstanding Balance | 375,000 | |
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 | |
Total Consolidated | 600,000 | |
Effective rate (as a percent) | 1.71% | [2] |
Maturity Date | 3-Jan-19 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 600,000 | |
Thereafter | 0 | |
Outstanding 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 | 421,000 | |
Total Consolidated | 421,000 | |
Effective rate (as a percent) | 1.22% | [2] |
Maturity Date | 3-Jan-19 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Annual facility fee (as a percent) | 0.20% | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 421,000 | |
Thereafter | 0 | |
Outstanding Balance | 421,000 | |
Unsecured Senior Notes Due in January 2020 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Stated interest rate (as a percent) | 2.75% | |
Effective rate (as a percent) | 2.79% | [2] |
Maturity Date | 15-Jan-20 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 400,000 | |
Outstanding Balance | 400,000 | |
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% | [2] |
Maturity Date | 1-Apr-22 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 550,000 | |
Outstanding 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% | [2] |
Maturity Date | 15-Jun-23 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 500,000 | |
Outstanding Balance | 500,000 | |
Unsecured Senior Notes Due in July 2029 [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Stated interest rate (as a percent) | 4.50% | |
Effective rate (as a percent) | 4.51% | [2] |
Maturity Date | 30-Jul-29 | [3] |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | |
Future principal payments due on secured and unsecured debt | ||
Due Next Year | 0 | |
Due Year Three | 0 | |
Due Year Four | 0 | |
Due Year Five | 0 | |
Thereafter | 300,000 | |
Outstanding Balance | 300,000 | |
Unamortized Discounts | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -2,550 | |
Unamortized Discounts | 2015 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -246 | |
Unamortized Discounts | 2016 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -337 | |
Unamortized Discounts | 2017 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -350 | |
Unamortized Discounts | 2018 | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -362 | |
Unamortized Discounts | 2019 [Member] | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -375 | |
Unamortized Discounts | Maturity Date After 2019 [Member] | ||
Future principal payments due on secured and unsecured debt | ||
Unamortized discount | -880 | |
Senior Notes [Member] | ||
Summary of fixed rate/hedged and floating rate debt | ||
Fixed Rate/Hedged Variable Rate | 1,747,450 | |
Unhedged Variable rate | 0 | |
Total Consolidated | $1,747,450 | |
Effective rate (as a percent) | 3.98% | |
LIBOR | Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
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 Debt Maturing on 23 August 2017 [Member] | ||
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% | [4] |
[1] | (1)Represents the weighted average 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] | Represents the weighted average interest rate as of the end of the period plus the impact of debt premiums/discounts and our interest rate swap agreements. The weighted average interest rate excludes bank fees and amortization of loan fees. | |
[3] | (2)Includes any extension options that we control. | |
[4] | (3)We have two, one-year options to extend the stated maturity date to July 1, 2017, subject to certain conditions. We expect to exercise our option to extend the maturity date from July 1, 2015, to July 1, 2016. |
Secured_and_unsecured_senior_d5
Secured and unsecured senior debt Schedule of interest expense incurred (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest expense incurred | ||
Gross interest | $34,207 | $31,136 |
Capitalized interest | -10,971 | -12,013 |
Interest | $23,236 | $19,123 |
Secured_and_unsecured_senior_d6
Secured and unsecured senior debt Repayment of secured note payable (Details) (MARYLAND, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
MARYLAND | |
Debt Instrument [Line Items] | |
Outstanding Balance | $5.80 |
Effective rate (as a percent) | 4.50% |
Secured_and_unsecured_senior_d7
Secured and unsecured senior debt Schedule of secured construction loans (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | ||
Extension_Option | ||
Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Number of extensions available under line of credit | 2 | |
Maturity Date | 1-Jul-15 | [1] |
Outstanding Balance | $46,983,000 | |
Secured Debt Maturing on 1 June 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Number of extensions available under line of credit | 2 | |
Maturity Date | 1-Jun-16 | [1] |
Outstanding Balance | 20,550,000 | |
Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Number of extensions available under line of credit | 1 | |
Maturity Date | 23-Aug-17 | [1] |
Outstanding Balance | 134,280,000 | |
Construction Loans | ||
Debt Instrument [Line Items] | ||
Total Aggregate Commitments | 341,400,000 | |
San Franciso Bay Area [Member] | Construction Loans | Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 1-Jul-15 | |
Outstanding Balance | 46,983,000 | |
Remaining Commitment | 8,017,000 | |
Total Aggregate Commitments | 55,000,000 | |
San Franciso Bay Area [Member] | Construction Loans | Secured Debt Maturing on 1 June 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 1-Jun-16 | |
Outstanding Balance | 20,550,000 | |
Remaining Commitment | 15,450,000 | |
Greater Boston market | Construction Loans | Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | 23-Aug-17 | |
Outstanding Balance | 134,280,000 | |
Remaining Commitment | 116,120,000 | |
Total Aggregate Commitments | $250,400,000 | |
LIBOR | Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Base rate | LIBOR | |
Applicable margin (as a percent) | 1.50% | |
LIBOR | Secured Debt Maturing on 1 June 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Base rate | LIBOR | |
Applicable margin (as a percent) | 1.40% | |
LIBOR | Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Base rate | LIBOR | |
Applicable margin (as a percent) | 1.35% | |
LIBOR | San Franciso Bay Area [Member] | Construction Loans | Secured Debt from Bank Maturing on 1 July 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Base rate | LIBOR | |
Applicable margin (as a percent) | 1.50% | |
LIBOR | San Franciso Bay Area [Member] | Construction Loans | Secured Debt Maturing on 1 June 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Base rate | LIBOR | |
Applicable margin (as a percent) | 1.40% | |
LIBOR | Greater Boston market | Construction Loans | Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Base rate | LIBOR | |
Applicable margin (as a percent) | 1.35% | |
[1] | (2)Includes any extension options that we control. |
Interest_rate_swap_agreements_1
Interest rate swap agreements (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
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 | 1,300,000 | ||
Collateral obligation requirements | 0 | ||
Interest Rate Derivative Liabilities, at Fair Value | -3,417,000 | -909,000 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | $3,400,000 |
Interest_rate_swap_agreements_2
Interest rate swap agreements Outstanding interest rate swap (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Interest rate hedge agreements | ||
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 950,000 | |
Notional Amount in Effect as of 12/31/15 | 950,000 | |
Notional Amount in Effect as of 12/31/16 | 600,000 | |
Interest Rate Derivative Liabilities, at Fair Value | 3,417 | 909 |
Unsecured Bank Term Loan 2016 | Minimum | ||
Interest rate hedge agreements | ||
Applicable margin (as a percent) | 1.20% | |
Unsecured Credit Facility [Member] | Minimum | ||
Interest rate hedge agreements | ||
Applicable margin (as a percent) | 1.10% | |
Interest Rate Hedge 0.527 Percent Transaction Date December 2014 Contract Three [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | 3 | |
Interest Pay Rate (as a percent) | 0.53% | |
Fair Values | -926 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 500,000 | |
Notional Amount in Effect as of 12/31/15 | 500,000 | |
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 | 7 | |
Interest Pay Rate (as a percent) | 0.42% | |
Fair Values | -362 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 450,000 | |
Notional Amount in Effect as of 12/31/15 | 450,000 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Interest Rate Hedge 0.93 Percent Transaction Date March 2016 Contract [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | 4 | |
Interest Pay Rate (as a percent) | 0.93% | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 0 | |
Notional Amount in Effect as of 12/31/15 | 0 | |
Notional Amount in Effect as of 12/31/16 | 200,000 | |
Interest Rate Hedge 1.35 Percent Transaction Date March 2016 [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | 5 | |
Interest Pay Rate (as a percent) | 1.35% | |
Fair Values | -2,129 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 0 | |
Notional Amount in Effect as of 12/31/15 | 0 | |
Notional Amount in Effect as of 12/31/16 | 600,000 |
Accounts_payable_accrued_expen2
Accounts payable, accrued expenses and tenant security deposits (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
sqft | |||
Payable for purchase of noncontrolling interest | $113,967 | $0 | |
Area of Real Estate Property | 18,527,998 | ||
Accounts Payable and Other Accrued Liabilities | 156,269 | 127,828 | |
Construction Payable | 85,769 | 91,110 | |
Acquired below market leases | 29,198 | 8,810 | |
Asset Retirement Obligation | 8,984 | 9,108 | |
Deferred Rent Liability | 26,722 | 36,231 | |
Derivative Liability | 3,417 | 909 | |
Prepaid Rent and Tenant Security Deposits | 204,688 | 193,699 | |
Other Accounts Payable and Accrued Liabilities | 130,572 | 21,390 | |
Accounts Payable and Accrued Liabilities | 645,619 | 489,085 | |
Alexandria Technology Square [Member] | |||
Payable for purchase of noncontrolling interest | $108,300 | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | ||
Alexandria Technology Square [Member] | |||
Area of Real Estate Property | 1,181,635 |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Dilutive Securities, Effect on Basic Earnings Per Share | $0 | |
Earnings per share | ||
Income from continuing operations | 25,051,000 | 40,911,000 |
Dividends on preferred stock | -6,247,000 | -6,471,000 |
Net income attributable to noncontrolling interests | -492,000 | -1,195,000 |
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | -483,000 | -374,000 |
Income from continuing operations attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted | 17,829,000 | 32,871,000 |
(Loss) income from discontinued operations, net | -43,000 | -162,000 |
Net income attributable to Alexandria’s common stockholders | $17,786,000 | $32,709,000 |
Weighted average shares of common stock outstanding – basic and diluted | 71,366 | 71,073 |
Earnings per share attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted: | ||
Continuing operations | $0.25 | $0.46 |
Discontinued operations | $0 | $0 |
Earnings per share – basic and diluted | $0.25 | $0.46 |
Stockholders_equity_Details
Stockholders' equity (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Issuances of common stock | ||
Dividends declared on common stock | $53,306,000 | |
Common Stock, Dividends, Per Share, Declared | $0.74 | $0.70 |
Preferred stock, shares authorized | 100,000,000 | |
Number of shares issued and outstanding | 14,700,000 | |
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 | 4,200,000 | |
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 | $2,100,000 | |
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, 2015 |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance as of December 31, 2014 | ($628) |
Other comprehensive income (loss) before reclassifications | 19,151 |
Amounts reclassified from other comprehensive income (loss) | 10,844 |
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | -154 |
Net other comprehensive income (loss) | 29,841 |
Balance as of March 31, 2015 | 29,213 |
Unrealized Gain on Marketable Securities | |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance as of December 31, 2014 | 52,367 |
Other comprehensive income (loss) before reclassifications | 28,435 |
Amounts reclassified from other comprehensive income (loss) | 1,103 |
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | 0 |
Net other comprehensive income (loss) | 29,538 |
Balance as of March 31, 2015 | 81,905 |
Unrealized Loss on Interest Rate Swap Agreements | |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance as of December 31, 2014 | -909 |
Other comprehensive income (loss) before reclassifications | -3,013 |
Amounts reclassified from other comprehensive income (loss) | 505 |
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | 0 |
Net other comprehensive income (loss) | -2,508 |
Balance as of March 31, 2015 | -3,417 |
Unrealized Loss on Foreign Currency Translation | |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | |
Balance as of December 31, 2014 | -52,086 |
Other comprehensive income (loss) before reclassifications | -6,271 |
Amounts reclassified from other comprehensive income (loss) | 9,236 |
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | -154 |
Net other comprehensive income (loss) | 2,811 |
Balance as of March 31, 2015 | ($49,275) |
Noncontrolling_interests_Detai
Noncontrolling interests (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
sqft | |||
Noncontrolling interests | |||
Area of Real Estate Property | 18,527,998 | ||
Payable for purchase of noncontrolling interest | $113,967 | $0 | |
Income (Loss) from Continuing Operations Attributable to Parent | 24,559 | 39,716 | |
(Loss) income from discontinued operations, net | -43 | -162 | |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | -113,967 | [1] | |
Noncontrolling Interests | |||
Noncontrolling interests | |||
Number of projects subject to ownership from noncontrolling interests | 4 | ||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | -65,504 | ||
Alexandria Technology Square [Member] | |||
Noncontrolling interests | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | ||
Payable for purchase of noncontrolling interest | 108,300 | ||
Second Installment Payment [Member] | Alexandria Technology Square [Member] | |||
Noncontrolling interests | |||
Payable for purchase of noncontrolling interest | 54,000 | ||
Installment Payment [Member] | Alexandria Technology Square [Member] | |||
Noncontrolling interests | |||
Payable for purchase of noncontrolling interest | $54,300 | ||
Alexandria Technology Square [Member] | |||
Noncontrolling interests | |||
Area of Real Estate Property | 1,181,635 | ||
[1] | For additional information, refer to Note 11 – “Noncontrolling Interests†to our unaudited consolidated financial statements under Item 1 of this report. |
Discontinued_operations_Detail
Discontinued operations (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
property | |||
sqft | |||
Assets held for sale [Line Items] | |||
Disposal Group, Including Assets Held for Sale Not Qualifying as Discontinued Operations, Revenue | $2,330 | $2,500 | |
Assets Held for Sale, Number of Properties | 3 | ||
Disposal Group, Including Assets Held for Sale Not Qualifying as Discontinued Operations, Operating Expense | -766 | -701 | |
Disposal Group, Including Assets Held for Sale Not Qualifying as Discontinued Operations, Operating Income (Loss) | 1,564 | 1,799 | |
Depreciation and Amortization, Assets Held for Sale | -127 | -1,891 | |
Disposal Group, Including Assets Held for Sale Not Qualifying as Discontinued Operations, Impairment of Real Estate | -14,510 | 0 | |
Disposal Group Including Assets Held for Sale, Not Qualifying as Discontinued Operations, Number of Properties | 2 | ||
Disposal Group Including Assets Held for Sale, Not Qualifying as Discontinued Operations, Area of Real Estate | 234,186 | ||
Income (Loss) from Assets Held for Sale Not Qualifying as Discontinued Operations | -13,073 | -92 | |
Number of operating properties classified as held for sale | 4 | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 117,203 | 173,706 | |
Net assets of discontinued operations | |||
Other assets | 5,611 | 10,147 | |
Total assets | 122,814 | 183,853 | |
Total liabilities | 0 | -6,044 | |
Net assets of discontinued operations | 122,814 | 177,809 | |
Income from discontinued operations, net | |||
Total revenues | 0 | 0 | |
Operating expenses | -43 | -162 | |
Loss from discontinued operations | ($43) | ($162) | |
Number of properties sold | 3 | ||
Assets held for sale sold in 2015 [Member] | |||
Assets held for sale [Line Items] | |||
Disposal Group Including Assets Held for Sale, Not Qualifying as Discontinued Operations, Area of Real Estate | 196,859 | ||
Disposal Group Including Assets Held for Sale, Not Qualifying as Discontinued Operations, Properties Sold Number | 3 | ||
Assets Held-for-sale [Member] | |||
Assets held for sale [Line Items] | |||
Number of operating properties classified as held for sale | 1 |
Subsequent_events_Details
Subsequent events (Details) (USD $) | 1 Months Ended | |
In Thousands, unless otherwise specified | Apr. 30, 2015 | Mar. 31, 2015 |
sqft | sqft | |
Subsequent Event [Line Items] | ||
Effective Portion of Interest Rate Cash Flow Hedge in Year Two | $600,000 | |
Area of Real Estate Property | 18,527,998 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 950,000 | |
Effective Portion of Interest Rate Cash Flow Hedge in the Next Twelve Months | 950,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Effective Portion of Interest Rate Cash Flow Hedge in Year Two | 800,000 | |
Effective Portion of Interest Rate Cash Flow Hedge Derivatives | 750,000 | |
Effective Portion of Interest Rate Cash Flow Hedge in the Next Twelve Months | 950,000 | |
510 Townsend Street [Member] | Executed lease [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Area of Real Estate Property | 300,000 | |
Real Estate, Leased Percentage | 100.00% | |
400 Dexter Avenue North [Member] | Executed lease [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Area of Real Estate Property | 80,000 | |
400 Dexter Avenue North [Member] | Executed lease [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Area of Real Estate Property | 71,000 | |
Number 10300 Campus Point Drive [Member] | Executed lease [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Area of Real Estate Property | 106,173 | |
Development [Member] | 400 Dexter Avenue North [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Area of Real Estate Property | 287,806 | |
Development [Member] | Number 10300 Campus Point Drive [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Area of Real Estate Property | 142,034 | |
San Diego [Member] | Number 10300 Campus Point Drive [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Real Estate, Leased Percentage | 75.00% |
Condensed_consolidating_financ2
Condensed consolidating financial information Balance Sheet (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Investments in real estate, net | $7,388,059 | $7,226,016 | ||
Cash and cash equivalents | 90,641 | 86,011 | 74,970 | 57,696 |
Restricted cash | 56,704 | 26,884 | ||
Tenant receivables | 10,627 | 10,548 | ||
Deferred rent | 243,459 | 234,124 | ||
Deferred leasing and financing costs, net | 199,576 | 201,798 | ||
Investments | 283,062 | 236,389 | ||
Investments in and advances to affiliates | 0 | 0 | ||
Other assets | 133,093 | 114,266 | ||
Total assets | 8,405,221 | 8,136,036 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 760,476 | 652,209 | ||
Unsecured senior notes payable | 1,747,450 | 1,747,370 | ||
Unsecured senior line of credit | 421,000 | 304,000 | ||
Unsecured senior bank term loans | 975,000 | 975,000 | ||
Accounts Payable and Accrued Liabilities | 645,619 | 489,085 | ||
Dividends payable | 58,824 | 58,814 | ||
Total liabilities | 4,608,369 | 4,226,478 | ||
Redeemable noncontrolling interests | 14,282 | 14,315 | ||
Alexandria’s stockholders’ equity | 3,780,548 | 3,828,439 | ||
Noncontrolling interests | 2,022 | 66,804 | ||
Total equity | 3,782,570 | 3,895,243 | 3,895,243 | |
Total liabilities, noncontrolling interests, and equity | 8,405,221 | 8,136,036 | 8,136,036 | |
Alexandria Real Estate Equities, Inc. (Issuer) | ||||
Assets | ||||
Investments in real estate, net | 0 | 0 | ||
Cash and cash equivalents | 60,236 | 52,491 | 36,379 | 14,790 |
Restricted cash | 63 | 67 | ||
Tenant receivables | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Deferred leasing and financing costs, net | 33,537 | 35,462 | ||
Investments | 0 | 0 | ||
Investments in and advances to affiliates | 6,971,361 | 6,874,866 | ||
Other assets | 21,651 | 19,461 | ||
Total assets | 7,086,848 | 6,982,347 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 0 | 0 | ||
Unsecured senior notes payable | 1,747,450 | 1,747,370 | ||
Unsecured senior line of credit | 421,000 | 304,000 | ||
Unsecured senior bank term loans | 975,000 | 975,000 | ||
Accounts Payable and Accrued Liabilities | 104,315 | 69,013 | ||
Dividends payable | 58,535 | 58,525 | ||
Total liabilities | 3,306,300 | 3,153,908 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Alexandria’s stockholders’ equity | 3,780,548 | 3,828,439 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,780,548 | 3,828,439 | ||
Total liabilities, noncontrolling interests, and equity | 7,086,848 | 6,982,347 | ||
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||||
Assets | ||||
Investments in real estate, net | 0 | 0 | ||
Cash and cash equivalents | 63 | 63 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Tenant receivables | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Deferred leasing and financing costs, net | 0 | 0 | ||
Investments | 5,204 | 5,235 | ||
Investments in and advances to affiliates | 6,344,419 | 6,295,852 | ||
Other assets | 0 | 0 | ||
Total assets | 6,349,686 | 6,301,150 | ||
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 and Accrued Liabilities | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Alexandria’s stockholders’ equity | 6,349,686 | 6,301,150 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 6,349,686 | 6,301,150 | ||
Total liabilities, noncontrolling interests, and equity | 6,349,686 | 6,301,150 | ||
Combined Non- Guarantor Subsidiaries | ||||
Assets | ||||
Investments in real estate, net | 7,388,059 | 7,226,016 | ||
Cash and cash equivalents | 30,342 | 33,457 | 38,591 | 42,906 |
Restricted cash | 56,641 | 26,817 | ||
Tenant receivables | 10,627 | 10,548 | ||
Deferred rent | 243,459 | 234,124 | ||
Deferred leasing and financing costs, net | 166,039 | 166,336 | ||
Investments | 277,858 | 231,154 | ||
Investments in and advances to affiliates | 129,930 | 128,943 | ||
Other assets | 111,442 | 94,805 | ||
Total assets | 8,414,397 | 8,152,200 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 760,476 | 652,209 | ||
Unsecured senior notes payable | 0 | 0 | ||
Unsecured senior line of credit | 0 | 0 | ||
Unsecured senior bank term loans | 0 | 0 | ||
Accounts Payable and Accrued Liabilities | 541,304 | 420,072 | ||
Dividends payable | 289 | 289 | ||
Total liabilities | 1,302,069 | 1,072,570 | ||
Redeemable noncontrolling interests | 14,282 | 14,315 | ||
Alexandria’s stockholders’ equity | 7,096,024 | 6,998,511 | ||
Noncontrolling interests | 2,022 | 66,804 | ||
Total equity | 7,098,046 | 7,065,315 | ||
Total liabilities, noncontrolling interests, and equity | 8,414,397 | 8,152,200 | ||
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 | -13,445,710 | -13,299,661 | ||
Other assets | 0 | 0 | ||
Total assets | -13,445,710 | -13,299,661 | ||
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 and Accrued Liabilities | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Alexandria’s stockholders’ equity | -13,445,710 | -13,299,661 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | -13,445,710 | -13,299,661 | ||
Total liabilities, noncontrolling interests, and equity | ($13,445,710) | ($13,299,661) |
Condensed_consolidating_financ3
Condensed consolidating financial information Income Statement (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Rental | $143,608 | $130,570 |
Tenant recoveries | 48,394 | 41,682 |
Other Income | 4,751 | 3,934 |
Total revenues | 196,753 | 176,186 |
Expenses: | ||
Rental operations | 61,223 | 52,507 |
General and administrative | 14,387 | 13,224 |
Interest | 23,236 | 19,123 |
Depreciation and amortization | 58,920 | 50,421 |
Impairment of Real Estate | 14,510 | 0 |
Total expenses | 172,276 | 135,275 |
Income (Loss) from Equity Method Investments | 574 | 0 |
Income (Loss) from Subsidiaries, before Tax | 0 | 0 |
Income from continuing operations | 25,051 | 40,911 |
(Loss) income from discontinued operations, net | -43 | -162 |
Net income | 25,008 | 40,749 |
Dividends on preferred stock | -6,247 | -6,471 |
Net income attributable to noncontrolling interests | -492 | -1,195 |
Net income attributable to unvested restricted stock awards | -483 | -374 |
Net Income (Loss) Available to Common Stockholders, Basic | 17,786 | 32,709 |
Alexandria Real Estate Equities, Inc. (Issuer) | ||
Revenues: | ||
Rental | 0 | 0 |
Tenant recoveries | 0 | 0 |
Other Income | 3,026 | 2,919 |
Total revenues | 3,026 | 2,919 |
Expenses: | ||
Rental operations | 0 | 0 |
General and administrative | 12,226 | 10,860 |
Interest | 17,157 | 13,539 |
Depreciation and amortization | 1,247 | 1,471 |
Impairment of Real Estate | 0 | |
Total expenses | 30,630 | 25,870 |
Income (Loss) from Equity Method Investments | 0 | |
Income (Loss) from Subsidiaries, before Tax | 52,120 | 62,505 |
Income from continuing operations | 24,516 | 39,554 |
(Loss) income from discontinued operations, net | 0 | 0 |
Net income | 24,516 | 39,554 |
Dividends on preferred stock | -6,247 | -6,471 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to unvested restricted stock awards | -483 | -374 |
Net Income (Loss) Available to Common Stockholders, Basic | 17,786 | 32,709 |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||
Revenues: | ||
Rental | 0 | 0 |
Tenant recoveries | 0 | 0 |
Other Income | -41 | 0 |
Total revenues | -41 | 0 |
Expenses: | ||
Rental operations | 0 | 0 |
General and administrative | 0 | 0 |
Interest | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Impairment of Real Estate | 0 | |
Total expenses | 0 | 0 |
Income (Loss) from Equity Method Investments | 0 | |
Income (Loss) from Subsidiaries, before Tax | 45,590 | 58,306 |
Income from continuing operations | 45,549 | 58,306 |
(Loss) income from discontinued operations, net | 0 | 0 |
Net income | 45,549 | 58,306 |
Dividends on preferred stock | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to unvested restricted stock awards | 0 | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | 45,549 | 58,306 |
Combined Non- Guarantor Subsidiaries | ||
Revenues: | ||
Rental | 143,608 | 130,570 |
Tenant recoveries | 48,394 | 41,682 |
Other Income | 5,564 | 4,633 |
Total revenues | 197,566 | 176,885 |
Expenses: | ||
Rental operations | 61,223 | 52,507 |
General and administrative | 5,959 | 5,982 |
Interest | 6,079 | 5,584 |
Depreciation and amortization | 57,673 | 48,950 |
Impairment of Real Estate | 14,510 | |
Total expenses | 145,444 | 113,023 |
Income (Loss) from Equity Method Investments | 574 | |
Income (Loss) from Subsidiaries, before Tax | 917 | 1,148 |
Income from continuing operations | 53,613 | 65,010 |
(Loss) income from discontinued operations, net | -43 | -162 |
Net income | 53,570 | 64,848 |
Dividends on preferred stock | 0 | 0 |
Net income attributable to noncontrolling interests | -492 | -1,195 |
Net income attributable to unvested restricted stock awards | 0 | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | 53,078 | 63,653 |
Eliminations | ||
Revenues: | ||
Rental | 0 | 0 |
Tenant recoveries | 0 | 0 |
Other Income | -3,798 | -3,618 |
Total revenues | -3,798 | -3,618 |
Expenses: | ||
Rental operations | 0 | 0 |
General and administrative | -3,798 | -3,618 |
Interest | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Impairment of Real Estate | 0 | |
Total expenses | -3,798 | -3,618 |
Income (Loss) from Equity Method Investments | 0 | |
Income (Loss) from Subsidiaries, before Tax | -98,627 | -121,959 |
Income from continuing operations | -98,627 | -121,959 |
(Loss) income from discontinued operations, net | 0 | 0 |
Net income | -98,627 | -121,959 |
Dividends on preferred stock | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to unvested restricted stock awards | 0 | 0 |
Net Income (Loss) Available to Common Stockholders, Basic | ($98,627) | ($121,959) |
Condensed_consolidating_financ4
Condensed consolidating financial information Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income | $25,008 | $40,749 |
Unrealized (losses) gains on marketable securities: | ||
Unrealized holding gains arising during the period | 28,435 | 18,779 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 1,103 | 0 |
Unrealized gains on marketable securities, net | 29,538 | 18,779 |
Unrealized (losses) gains on interest rate swap agreements: | ||
Unrealized interest rate swap losses arising during the period | -3,013 | 5,592 |
Reclassification adjustment for amortization of interest expense included in net income | 505 | -3,490 |
Unrealized gains on interest rate swap agreements, net | -2,508 | 2,102 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -6,271 | -3,106 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 9,236 | 0 |
Unrealized foreign currency translation losses arising during the period | 2,965 | -3,106 |
Total other comprehensive income (loss) | 29,995 | 17,775 |
Comprehensive income | 55,003 | 58,524 |
Less: comprehensive income attributable to noncontrolling interests | -646 | -1,195 |
Comprehensive income attributable to Alexandria’s common stockholders | 54,357 | 57,329 |
Alexandria Real Estate Equities, Inc. (Issuer) | ||
Net income | 24,516 | 39,554 |
Unrealized (losses) gains on marketable securities: | ||
Unrealized holding 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 (losses) gains on interest rate swap agreements: | ||
Unrealized interest rate swap losses arising during the period | -3,013 | 5,592 |
Reclassification adjustment for amortization of interest expense included in net income | 505 | -3,490 |
Unrealized gains on interest rate swap agreements, net | -2,508 | 2,102 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | |
Unrealized foreign currency translation losses arising during the period | 0 | 0 |
Total other comprehensive income (loss) | -2,508 | 2,102 |
Comprehensive income | 22,008 | 41,656 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | 22,008 | 41,656 |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||
Net income | 45,549 | 58,306 |
Unrealized (losses) gains on marketable securities: | ||
Unrealized holding gains arising during the period | -54 | 0 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 41 | 0 |
Unrealized gains on marketable securities, net | -13 | 0 |
Unrealized (losses) gains on interest rate swap agreements: | ||
Unrealized interest rate swap losses 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 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | |
Unrealized foreign currency translation losses arising during the period | 0 | 0 |
Total other comprehensive income (loss) | -13 | 0 |
Comprehensive income | 45,536 | 58,306 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | 45,536 | 58,306 |
Combined Non- Guarantor Subsidiaries | ||
Net income | 53,570 | 64,848 |
Unrealized (losses) gains on marketable securities: | ||
Unrealized holding gains arising during the period | 28,489 | 18,779 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 1,062 | 0 |
Unrealized gains on marketable securities, net | 29,551 | 18,779 |
Unrealized (losses) gains on interest rate swap agreements: | ||
Unrealized interest rate swap losses 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 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | -6,271 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 9,236 | |
Unrealized foreign currency translation losses arising during the period | 2,965 | -3,106 |
Total other comprehensive income (loss) | 32,516 | 15,673 |
Comprehensive income | 86,086 | 80,521 |
Less: comprehensive income attributable to noncontrolling interests | -646 | -1,195 |
Comprehensive income attributable to Alexandria’s common stockholders | 85,440 | 79,326 |
Eliminations | ||
Net income | -98,627 | -121,959 |
Unrealized (losses) gains on marketable securities: | ||
Unrealized holding 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 (losses) gains on interest rate swap agreements: | ||
Unrealized interest rate swap losses 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 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | 0 | |
Unrealized foreign currency translation losses arising during the period | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 |
Comprehensive income | -98,627 | -121,959 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Alexandria’s common stockholders | ($98,627) | ($121,959) |
Condensed_consolidating_financ5
Condensed consolidating financial information Cash Flows (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $25,008 | $40,749 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 58,920 | 50,421 |
Impairment of Real Estate | 14,510 | 0 |
Equity in earnings of affiliates | -574 | 0 |
Distributions of earnings from unconsolidated joint ventures | 491 | 0 |
Amortization of loan fees and costs | 2,834 | 2,561 |
Amortization of debt premiums/discounts | -82 | 205 |
Amortization of above and below Market Leases | -933 | -816 |
Deferred rent | -9,901 | -11,882 |
Stock compensation expense | 3,690 | 3,228 |
Equity in earnings of affiliates | 0 | 0 |
Investment gains | -5,937 | -4,040 |
Investment losses | 2,225 | 1,694 |
Changes in operating assets and liabilities: | ||
Restricted cash | -51 | 0 |
Tenant receivables | -102 | -690 |
Deferred leasing costs | -7,131 | -7,572 |
Other assets | -3,247 | -17,315 |
Accounts payable, accrued expenses, and tenant security deposits | 27,121 | 16,716 |
Net cash (used in) provided by operating activities | 106,841 | 73,259 |
Investing Activities | ||
Proceeds from sale of properties | 67,616 | 0 |
Additions to real estate | -104,632 | -111,587 |
Purchase of real estate | -93,938 | -42,338 |
Change in restricted cash related to construction projects | 0 | -140 |
Payments for (Proceeds from) Deposits on Real Estate Acquisitions | -28,000 | 0 |
Contributions to unconsolidated real estate entity | -2,539 | -747 |
Investments in subsidiaries | 0 | 0 |
Additions to investments | -15,118 | -11,905 |
Sales of investments | 2,345 | 3,998 |
Repayment of notes receivable | 4,214 | 0 |
Net cash (used in) provided by investing activities | -170,052 | -162,719 |
Financing Activities | ||
Borrowings from secured notes payable | 29,585 | 51,030 |
Repayments of borrowings from secured notes payable | -7,934 | -210,844 |
Principal borrowings from unsecured senior line of credit | 167,000 | 360,000 |
Repayments of borrowings from unsecured senior line of credit | -50,000 | -58,000 |
Transfers to/from parent company | 0 | 0 |
Change in restricted cash related to financings | -1,369 | 1,059 |
Deferred financing costs paid | -563 | -8 |
Dividends paid on common stock | -53,295 | -48,714 |
Dividends paid on preferred stock | -6,247 | -6,471 |
Proceeds from Noncontrolling Interests | 340 | 19,410 |
Distributions to noncontrolling interests | -9,846 | -988 |
Net cash provided by (used in) financing activities | 67,671 | 106,474 |
Effect of foreign exchange rate changes on cash and cash equivalents | 170 | 260 |
Net increase (decrease) in cash and cash equivalents | 4,630 | 17,274 |
Cash and cash equivalents at beginning of period | 86,011 | 57,696 |
Cash and cash equivalents at end of period | 90,641 | 74,970 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, net of interest capitalized | 15,514 | 6,093 |
Non-Cash Investing Activities | ||
Change in accrued construction | -7,249 | -6,028 |
Assumption of secured notes payable in connection with purchase of properties | -82,000 | -48,329 |
Payable for purchase of noncontrolling interest | -113,967 | 0 |
Alexandria Real Estate Equities, Inc. (Issuer) | ||
Operating Activities | ||
Net income | 24,516 | 39,554 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 1,247 | 1,471 |
Impairment of Real Estate | 0 | |
Equity in earnings of affiliates | 0 | |
Distributions of earnings from unconsolidated joint ventures | 0 | |
Amortization of loan fees and costs | 1,925 | 1,770 |
Amortization of debt premiums/discounts | 80 | 40 |
Amortization of above and below Market Leases | 0 | 0 |
Deferred rent | 0 | 0 |
Stock compensation expense | 3,690 | 3,228 |
Equity in earnings of affiliates | -52,120 | -62,505 |
Investment gains | 0 | 0 |
Investment losses | 0 | 0 |
Changes in operating assets and liabilities: | ||
Restricted cash | 4 | |
Tenant receivables | 0 | 0 |
Deferred leasing costs | 0 | 0 |
Other assets | -3,437 | -748 |
Accounts payable, accrued expenses, and tenant security deposits | 32,795 | 13,478 |
Net cash (used in) provided by operating activities | 8,700 | -3,712 |
Investing Activities | ||
Proceeds from sale of properties | 0 | |
Additions to real estate | 0 | 0 |
Purchase of real estate | 0 | 0 |
Change in restricted cash related to construction projects | 0 | |
Payments for (Proceeds from) Deposits on Real Estate Acquisitions | 0 | |
Contributions to unconsolidated real estate entity | 0 | 0 |
Investments in subsidiaries | -44,375 | -221,513 |
Additions to investments | 0 | 0 |
Sales of investments | 0 | 0 |
Repayment of notes receivable | 0 | |
Net cash (used in) provided by investing activities | -44,375 | -221,513 |
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 | 167,000 | 360,000 |
Repayments of borrowings from unsecured senior line of credit | -50,000 | -58,000 |
Transfers to/from parent company | -14,038 | 0 |
Change in restricted cash related to financings | 0 | 0 |
Deferred financing costs paid | 0 | 0 |
Dividends paid on common stock | -53,295 | -48,715 |
Dividends paid on preferred stock | -6,247 | -6,471 |
Proceeds from Noncontrolling Interests | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash provided by (used in) financing activities | 43,420 | 246,814 |
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 7,745 | 21,589 |
Cash and cash equivalents at beginning of period | 52,491 | 14,790 |
Cash and cash equivalents at end of period | 60,236 | 36,379 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, net of interest capitalized | 10,412 | 347 |
Non-Cash Investing Activities | ||
Change in accrued construction | 0 | 0 |
Assumption of secured notes payable in connection with purchase of properties | 0 | 0 |
Payable for purchase of noncontrolling interest | 0 | |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||
Operating Activities | ||
Net income | 45,549 | 58,306 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 0 | 0 |
Impairment of Real Estate | 0 | |
Equity in earnings of affiliates | 0 | |
Distributions of earnings from unconsolidated joint ventures | 0 | |
Amortization of loan fees and costs | 0 | 0 |
Amortization of debt premiums/discounts | 0 | 0 |
Amortization of above and below Market Leases | 0 | 0 |
Deferred rent | 0 | 0 |
Stock compensation expense | 0 | 0 |
Equity in earnings of affiliates | -45,590 | -58,306 |
Investment gains | 0 | 0 |
Investment losses | 41 | 0 |
Changes in operating assets and liabilities: | ||
Restricted cash | 0 | |
Tenant receivables | 0 | 0 |
Deferred leasing costs | 0 | 0 |
Other assets | 0 | 0 |
Accounts payable, accrued expenses, and tenant security deposits | -23 | 0 |
Net cash (used in) provided by operating activities | -23 | 0 |
Investing Activities | ||
Proceeds from sale of properties | 0 | |
Additions to real estate | 0 | 0 |
Purchase of real estate | 0 | 0 |
Change in restricted cash related to construction projects | 0 | |
Payments for (Proceeds from) Deposits on Real Estate Acquisitions | 0 | |
Contributions to unconsolidated real estate entity | 0 | 0 |
Investments in subsidiaries | -2,977 | -193,863 |
Additions to investments | 0 | 0 |
Sales of investments | 0 | 0 |
Repayment of notes receivable | 0 | |
Net cash (used in) provided by investing activities | -2,977 | -193,863 |
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 | 3,000 | 193,863 |
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 |
Proceeds from Noncontrolling Interests | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash provided by (used in) financing activities | 3,000 | 193,863 |
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 | 63 | 0 |
Cash and cash equivalents at end of period | 63 | 0 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, net of interest capitalized | 0 | 0 |
Non-Cash Investing Activities | ||
Change in accrued construction | 0 | 0 |
Assumption of secured notes payable in connection with purchase of properties | 0 | 0 |
Payable for purchase of noncontrolling interest | 0 | |
Combined Non- Guarantor Subsidiaries | ||
Operating Activities | ||
Net income | 53,570 | 64,848 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 57,673 | 48,950 |
Impairment of Real Estate | 14,510 | |
Equity in earnings of affiliates | -574 | |
Distributions of earnings from unconsolidated joint ventures | 491 | |
Amortization of loan fees and costs | 909 | 791 |
Amortization of debt premiums/discounts | -162 | 165 |
Amortization of above and below Market Leases | -933 | -816 |
Deferred rent | -9,901 | -11,882 |
Stock compensation expense | 0 | 0 |
Equity in earnings of affiliates | -917 | -1,148 |
Investment gains | -5,937 | -4,040 |
Investment losses | 2,184 | 1,694 |
Changes in operating assets and liabilities: | ||
Restricted cash | -55 | |
Tenant receivables | -102 | -690 |
Deferred leasing costs | -7,131 | -7,572 |
Other assets | 190 | -16,567 |
Accounts payable, accrued expenses, and tenant security deposits | -5,651 | 3,238 |
Net cash (used in) provided by operating activities | 98,164 | 76,971 |
Investing Activities | ||
Proceeds from sale of properties | 67,616 | |
Additions to real estate | -104,632 | -111,587 |
Purchase of real estate | -93,938 | -42,338 |
Change in restricted cash related to construction projects | -140 | |
Payments for (Proceeds from) Deposits on Real Estate Acquisitions | -28,000 | |
Contributions to unconsolidated real estate entity | -2,539 | -747 |
Investments in subsidiaries | -70 | -6,338 |
Additions to investments | -15,118 | -11,905 |
Sales of investments | 2,345 | 3,998 |
Repayment of notes receivable | 4,214 | |
Net cash (used in) provided by investing activities | -170,122 | -169,057 |
Financing Activities | ||
Borrowings from secured notes payable | 29,585 | 51,030 |
Repayments of borrowings from secured notes payable | -7,934 | -210,844 |
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 | 58,460 | 227,851 |
Change in restricted cash related to financings | -1,369 | 1,059 |
Deferred financing costs paid | -563 | -8 |
Dividends paid on common stock | 0 | 1 |
Dividends paid on preferred stock | 0 | 0 |
Proceeds from Noncontrolling Interests | 340 | 19,410 |
Distributions to noncontrolling interests | -9,846 | -988 |
Net cash provided by (used in) financing activities | 68,673 | 87,511 |
Effect of foreign exchange rate changes on cash and cash equivalents | 170 | 260 |
Net increase (decrease) in cash and cash equivalents | -3,115 | -4,315 |
Cash and cash equivalents at beginning of period | 33,457 | 42,906 |
Cash and cash equivalents at end of period | 30,342 | 38,591 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, net of interest capitalized | 5,102 | 5,746 |
Non-Cash Investing Activities | ||
Change in accrued construction | -7,249 | -6,028 |
Assumption of secured notes payable in connection with purchase of properties | -82,000 | -48,329 |
Payable for purchase of noncontrolling interest | -113,967 | |
Eliminations | ||
Operating Activities | ||
Net income | -98,627 | -121,959 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, Depletion and Amortization | 0 | 0 |
Impairment of Real Estate | 0 | |
Equity in earnings of affiliates | 0 | |
Distributions of earnings from unconsolidated joint ventures | 0 | |
Amortization of loan fees and costs | 0 | 0 |
Amortization of debt premiums/discounts | 0 | 0 |
Amortization of above and below Market Leases | 0 | 0 |
Deferred rent | 0 | 0 |
Stock compensation expense | 0 | 0 |
Equity in earnings of affiliates | 98,627 | 121,959 |
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 |
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 real estate | 0 | 0 |
Purchase of real estate | 0 | 0 |
Change in restricted cash related to construction projects | 0 | |
Payments for (Proceeds from) Deposits on Real Estate Acquisitions | 0 | |
Contributions to unconsolidated real estate entity | 0 | 0 |
Investments in subsidiaries | 47,422 | 421,714 |
Additions to investments | 0 | 0 |
Sales of investments | 0 | 0 |
Repayment of notes receivable | 0 | |
Net cash (used in) provided by investing activities | 47,422 | 421,714 |
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 | -47,422 | -421,714 |
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 |
Proceeds from Noncontrolling Interests | 0 | 0 |
Distributions to noncontrolling interests | 0 | 0 |
Net cash provided by (used in) financing activities | -47,422 | -421,714 |
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 | ||
Change in accrued construction | 0 | 0 |
Assumption of secured notes payable in connection with purchase of properties | 0 | 0 |
Payable for purchase of noncontrolling interest | $0 |