Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 24, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ALEXANDRIA REAL ESTATE EQUITIES INC | |
Entity Central Index Key | 1,035,443 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 79,414,121 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Investments in real estate, net | $ 7,939,179 | $ 7,629,922 |
Investments in unconsolidated real estate joint ventures | 133,580 | 127,212 |
Cash and cash equivalents | 157,928 | 125,098 |
Restricted cash | 16,406 | 28,872 |
Tenant receivables | 9,635 | 10,485 |
Deferred rent | 318,286 | 280,570 |
Deferred leasing costs | 191,765 | 192,081 |
Investments | 320,989 | 353,465 |
Other assets | 206,133 | 133,312 |
Total assets | 9,293,901 | 8,881,017 |
Liabilities, Noncontrolling Interests, and Equity | ||
Secured notes payable | 789,450 | 809,818 |
Unsecured senior notes payable | 2,377,482 | 2,030,631 |
Unsecured senior line of credit | 416,000 | 151,000 |
Unsecured senior bank term loans | 746,162 | 944,243 |
Accounts payable, accrued expenses, and tenant security deposits | 605,181 | 589,356 |
Dividends payable | 66,705 | 62,005 |
Total liabilities | 5,000,980 | 4,587,053 |
Commitments and contingencies | ||
Redeemable noncontrolling interests | 9,012 | 14,218 |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity: | ||
7.00% Series D cumulative convertible preferred stock | 161,792 | 237,163 |
6.45% Series E cumulative redeemable preferred stock | 130,000 | 130,000 |
Common stock | 768 | 725 |
Additional paid-in capital | 3,649,263 | 3,558,008 |
Accumulated other comprehensive (loss) income | (31,745) | 49,191 |
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,910,078 | 3,975,087 |
Noncontrolling interests | 373,831 | 304,659 |
Total equity | 4,283,909 | 4,279,746 |
Total liabilities, noncontrolling interests, and equity | $ 9,293,901 | $ 8,881,017 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Document Fiscal Year Focus | 2,016 | |||
Revenues: | ||||
Rental | $ 166,591 | $ 155,311 | $ 486,505 | $ 450,724 |
Tenant recoveries | 58,681 | 56,119 | 165,385 | 154,107 |
Other income | 5,107 | 7,180 | 20,654 | 14,688 |
Total revenues | 230,379 | 218,610 | 672,544 | 619,519 |
Expenses: | ||||
Rental operations | 72,002 | 68,846 | 205,164 | 192,319 |
General and administrative | 15,854 | 15,143 | 46,426 | 44,519 |
Interest | 25,850 | 27,679 | 75,730 | 77,583 |
Depreciation and amortization | 77,133 | 67,953 | 218,168 | 189,044 |
Impairment of real estate | 8,114 | 0 | 193,237 | 14,510 |
Loss on early extinguishment of debt | 3,230 | 0 | 3,230 | 189 |
Total expenses | 202,183 | 179,621 | 741,955 | 518,164 |
Equity in earnings (losses) of unconsolidated real estate joint ventures | 273 | 710 | (270) | 1,825 |
Income from continuing operations | 28,469 | 39,699 | (69,681) | 103,180 |
Loss from discontinued operations | 0 | 0 | 0 | (43) |
Gain on sales of real estate – land parcels | 90 | 0 | 90 | 0 |
Net income (loss) | 28,559 | 39,699 | (69,591) | 103,137 |
Net income attributable to noncontrolling interests | (4,084) | (170) | (11,614) | (925) |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 24,475 | 39,529 | (81,205) | 102,212 |
Dividends on preferred stock | (5,007) | (6,247) | (16,388) | (18,740) |
Preferred stock redemption charge | (13,095) | 0 | (25,614) | 0 |
Net income attributable to unvested restricted stock awards | (921) | (623) | (2,807) | (1,736) |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ 5,452 | $ 32,659 | $ (126,014) | $ 81,736 |
Earnings per share attributable to Alexandria’s common stockholders – basic and diluted: | ||||
Continuing operations (usd per share) | $ 0.07 | $ 0.46 | $ (1.69) | $ 1.14 |
Discontinued operations (usd per share) | 0 | 0 | 0 | 0 |
Earnings per share – basic and diluted (usd per share) | 0.07 | 0.46 | (1.69) | 1.14 |
Dividends declared per share of common stock (usd per share) | $ 0.8 | $ 0.77 | $ 2.40 | $ 2.28 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,559 | $ 39,699 | $ (69,591) | $ 103,137 |
Unrealized (losses) gains on available-for-sale equity securities: | ||||
Unrealized holding (losses) gains arising during the period | (38,621) | (29,832) | (70,055) | 54,004 |
Reclassification adjustment for gains included in net income | (8,540) | (4,968) | (18,627) | (2,503) |
Unrealized (losses) gains on available-for-sale equity securities, net | (47,161) | (34,800) | (88,682) | 51,501 |
Unrealized gains (losses) on interest rate hedge agreements: | ||||
Unrealized interest rate hedge gains (losses) arising during the period | 2,982 | (5,474) | (7,655) | (9,712) |
Reclassification adjustment for amortization of interest expense included in net income | 1,702 | 727 | 3,725 | 1,942 |
Unrealized gains on interest rate swap agreements, net | 4,684 | (4,747) | (3,930) | (7,770) |
Unrealized foreign currency translation (losses) gains arising during the period | (1,322) | (9,294) | 842 | (17,072) |
Reclassification adjustment for losses included in net income | 3,779 | 0 | 10,807 | 9,236 |
Unrealized foreign currency translation (losses) gains arising during the period | 2,457 | (9,294) | 11,649 | (7,836) |
Total other comprehensive (loss) income | (40,020) | (48,841) | (80,963) | 35,895 |
Comprehensive income | (11,461) | (9,142) | (150,554) | 139,032 |
Less: comprehensive income attributable to noncontrolling interests | (4,081) | (71) | (11,587) | (954) |
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders | $ (15,542) | $ (9,213) | $ (162,141) | $ 138,078 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity and Noncontrolling Interests (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Redeemable Noncontrolling Interests | 7.00% Series D Cumulative Convertible Preferred StockPreferred Stock | 7.00% Series D Cumulative Convertible Preferred StockAdditional Paid-In Capital | Series E Cumulative Redeemable Preferred StockPreferred Stock |
Beginning balance (shares) at Dec. 31, 2015 | 72,548,693 | |||||||||
Beginning balance at Dec. 31, 2015 | $ 4,279,746 | $ 725 | $ 3,558,008 | $ 0 | $ 49,191 | $ 304,659 | $ 237,163 | $ 130,000 | ||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Net Income | (70,376) | (81,205) | 10,829 | |||||||
Total other comprehensive loss | (80,963) | (80,936) | (27) | |||||||
Distributions to noncontrolling interests | (10,181) | (10,181) | ||||||||
Issuances of common stock (shares) | 3,948,491 | |||||||||
Issuances of common stock | 367,802 | $ 40 | 367,762 | |||||||
Issuances pursuant to stock plan (in shares) | 326,906 | |||||||||
Issuances pursuant to stock plan | 28,746 | $ 3 | 28,743 | |||||||
Sale of and contributions from noncontrolling interests | 68,014 | 68,551 | ||||||||
Repurchase of 7.00% Series D preferred stock | (98,633) | (25,614) | (75,371) | $ 2,352 | ||||||
Dividends declared on common stock | (183,858) | (183,858) | ||||||||
Dividends on preferred stock | (16,388) | (16,388) | ||||||||
Distributions in excess of earnings | (307,065) | 307,065 | ||||||||
Ending balance (shares) at Sep. 30, 2016 | 76,824,090 | |||||||||
Ending balance at Sep. 30, 2016 | 4,283,909 | $ 768 | $ 3,649,263 | $ 0 | $ (31,745) | $ 373,831 | $ 161,792 | $ 130,000 | ||
Beginning balance at Dec. 31, 2015 | 14,218 | $ 14,218 | ||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Net Income | 785 | |||||||||
Total other comprehensive loss | 0 | |||||||||
Repurchase of redeemable noncontrolling interests | (5,206) | |||||||||
Distributions to noncontrolling interests | (785) | |||||||||
Ending balance at Sep. 30, 2016 | $ 9,012 | $ 9,012 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net income | $ (69,591) | $ 103,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 218,168 | 189,044 |
Loss on early extinguishment of debt | 3,230 | 189 |
Gain on sales of real estate – land parcels | (90) | 0 |
Impairment of real estate | 193,237 | 14,510 |
Equity in losses (earnings) of unconsolidated real estate joint ventures | 270 | (1,825) |
Distributions of earnings from unconsolidated real estate joint ventures | 286 | 740 |
Amortization of loan fees | 8,792 | 8,348 |
Amortization of debt premiums/discounts | (117) | (282) |
Amortization of acquired below-market leases | (2,905) | (5,121) |
Deferred rent | (30,679) | (34,421) |
Stock compensation expense | 19,007 | 12,922 |
Investment gains | (28,721) | (22,368) |
Investment losses | 10,670 | 11,157 |
Changes in operating assets and liabilities: | ||
Restricted cash | (278) | 24 |
Tenant receivables | 843 | 380 |
Deferred leasing costs | (21,621) | (47,725) |
Other assets | (14,813) | (13,721) |
Accounts payable, accrued expenses, and tenant security deposits | 6,163 | 31,423 |
Net cash provided by operating activities | 291,851 | 246,411 |
Investing Activities | ||
Proceeds from sale of properties | 27,332 | 92,455 |
Additions to real estate | (638,568) | (362,215) |
Purchase of real estate | (18,108) | (248,933) |
Deposits for investing activities | (54,998) | (6,707) |
Investments in unconsolidated real estate joint ventures | (6,924) | (7,979) |
Additions to investments | (68,384) | (67,965) |
Sales of investments | 35,295 | 39,590 |
Repayment of notes receivable | 9,054 | 4,264 |
Net cash used in investing activities | (715,301) | (557,490) |
Financing Activities | ||
Borrowings from secured notes payable | 215,330 | 47,375 |
Repayments of borrowings from secured notes payable | (234,096) | (12,217) |
Proceeds from issuance of unsecured senior notes payable | 348,604 | 0 |
Borrowings from unsecured senior line of credit | 2,349,000 | 1,432,000 |
Repayments of borrowings from unsecured senior line of credit | (2,084,000) | (893,000) |
Repayment of borrowings from unsecured senior bank term loan | (200,000) | (25,000) |
Change in restricted cash related to financing activities | 7,742 | (4,737) |
Payment of loan fees | (16,499) | (4,182) |
Repurchase of 7.00% Series D preferred stock | (98,633) | 0 |
Proceeds from the issuance of common stock | 367,802 | 5,052 |
Dividends on common stock | (177,966) | (162,280) |
Dividends on preferred stock | (17,487) | (18,740) |
Financing costs paid for sale of noncontrolling interests | (8,093) | 0 |
Contributions from and sale of noncontrolling interests (Note 3) | 68,621 | 340 |
Distributions to and purchase of noncontrolling interests | (62,605) | (62,973) |
Net cash provided by financing activities | 457,720 | 301,638 |
Effect of foreign exchange rate changes on cash and cash equivalents | (1,440) | (187) |
Net (decrease) increase in cash and cash equivalents | 32,830 | (9,628) |
Cash and cash equivalents at beginning of period | 125,098 | 86,011 |
Cash and cash equivalents at end of period | 157,928 | |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, net of interest capitalized | 58,820 | 64,197 |
Non-Cash Investing Activities | ||
Change in accrued construction | 23,023 | (7,305) |
Assumption of secured notes payable in connection with purchase of properties | 0 | (82,000) |
Non-Cash Financing Activities: | ||
Redemption of redeemable noncontrolling interest | (5,000) | 0 |
Payable for purchase of noncontrolling interest | $ 0 | $ (51,887) |
Background
Background | 9 Months Ended |
Sep. 30, 2016 | |
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 an urban office REIT uniquely focused on world-class collaborative science and technology campuses in AAA innovation cluster locations with a total market capitalization of $13.0 billion and an asset base in North America of 24.5 million square feet as of September 30, 2016 . The asset base in North America includes 18.8 million RSF of operating properties and development and redevelopment projects (under construction or pre-construction) and 5.7 million square feet of future ground-up development projects. Alexandria pioneered this niche in 1994 and has since established a significant market presence in key locations, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland, and Research Triangle Park. Alexandria is known for our high-quality and diverse tenant base, with 54% of our total annualized base rent as of September 30, 2016 , generated from investment-grade tenants. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban science and technology campuses that provide its innovative 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 www.are.com. Our asset base in North America (including consolidated and unconsolidated real estate joint ventures) consisted of the following, as of September 30, 2016 : Square Feet Consolidated Unconsolidated Total Operating properties 16,052,751 313,407 16,366,158 Projects under construction or pre-construction: Projects to be delivered during the three months ending December 31, 2016 366,081 100,392 466,473 Projects to be delivered in 2017 and 2018 1,564,968 422,980 1,987,948 Development and redevelopment projects 1,931,049 523,372 2,454,421 Operating properties and development and redevelopment projects 17,983,800 836,779 18,820,579 Future value-creation projects 5,678,707 — 5,678,707 Asset base in North America 23,662,507 836,779 24,499,286 As of September 30, 2016 : • Investment-grade tenants represented 54% of our total annualized base rent; • Approximately 97% of our leases (on an RSF basis) were triple net leases, requiring tenants to pay substantially all real estate taxes, insurance, utilities, common area expenses, and other operating expenses (including increases thereto) in addition to base rent; • Approximately 95% of our leases (on an RSF basis) contained effective annual rent escalations that were either fixed (generally ranging from 3% to 3.5% ) or indexed based on a consumer price index or other index; and • Approximately 95% 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 tenants, and any amounts derived from these values in the notes to consolidated financial statements are unaudited. |
Basis of presentation and summa
Basis of presentation and summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and summary of significant accounting policies | 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, of a normal recurring nature, 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, 2016 . 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, 2015 . 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. Certain prior-period amounts have been reclassified to conform to current-period presentation. Consolidation On an ongoing basis, as circumstances indicate the need for reconsideration, we evaluate each legal entity that is not wholly owned by us, under the consolidation guidance, first under the variable interest model, then under the voting model. Our evaluation considers all of our variable interests, including equity ownership, as well as fees paid to us for our involvement in the management of each partially owned entity. The variable interest model applies to entities that meet both of the following criteria: • A legal structure has been established to conduct business activities and to hold assets; such entity can be in the form of a partnership, limited liability company, or corporation, among others; and • The entity established has variable interests – i.e., it has variable interests that are contractual, such as equity ownership or other financial interests that change with changes in the fair value of the entity’s net assets. If an entity meets both criteria above, we then evaluate such entity under the variable interest model. If an entity does not meet these criteria, we then evaluate such entity under the voting model or apply other GAAP, such as the cost or equity method of accounting. Variable interest model A legal entity is determined to be a VIE if it has any of the following three characteristics: 1) The entity does not have sufficient equity to finance its activities without additional subordinated financial support; 2) The entity is established with non-substantive voting rights (i.e., where the entity deprives the majority economic interest holder(s) of voting rights); or 3) The equity holders, as a group, lack the characteristics of a controlling financial interest. Equity holders meet this criterion if they lack any of the following: • The power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance, as evidenced by: • Substantive participating rights in day-to-day management of the entity’s activities; or • Substantive kick-out rights over the party responsible for significant decisions • The obligation to absorb the entity’s expected losses; and • The right to receive the entity’s expected residual returns. Once we consider the sufficiency of equity and voting rights of each legal entity, we then evaluate the characteristics of the equity holders’ interests, as a group, to see if they qualify as controlling financial interests. Our real estate joint ventures consist of limited partnerships or limited liability companies. For entities structured as limited partnerships or limited liability companies, our evaluation of whether the equity holders (equity partners other than us in each of our real estate joint ventures) lack the characteristics of a controlling financial interest includes the determination of whether the limited partners or non-managing members (the noncontrolling equity holders) lack both substantive participating rights and substantive kick-out rights, defined as follows: • Participating rights – provide the noncontrolling equity holders the ability to direct significant financial and operating decisions made in the ordinary course of business that most significantly impact the entity’s economic performance. • Kick-out rights – allow the noncontrolling equity holders to remove the general partner or managing member without cause. If we conclude that any of the three characteristics of a VIE are met, including whether equity holders lack the characteristics of a controlling financial interest because they lack both substantive participating rights and substantive kick-out rights, we also then conclude that the entity is a VIE and evaluate it for consolidation under the variable interest model. If an entity is determined to be a VIE, we evaluate whether we are the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and benefits. We consolidate a VIE if we have both power and benefits – that is, (i) we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (power), and (ii) we have the obligation to absorb losses of the VIE that could potentially be significant to the VIE, or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits). We consolidate VIEs whenever we determine that we are the primary beneficiary. Refer to Note 3 – “Investments in Real Estate” to these unaudited consolidated financial statements for information on specific real estate joint ventures that qualify as VIEs. If we have a variable interest in a VIE but we are not the primary beneficiary, we account for our investment using the equity method of accounting. Voting model If a legal entity fails to meet any of the three characteristics of a VIE (insufficiency of equity, non-substantive voting rights, or lack of controlling financial interest), we then evaluate such entity under the voting model. Under the voting model, we consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting shares, and we determine that other equity holders do not have substantive participating rights. Refer to Note 4 – “Investments in Unconsolidated Real Estate Joint Ventures” to these unaudited consolidated financial statements for further information on our unconsolidated real estate joint ventures that qualify for evaluation under the voting model. 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 acquired above- or below-market leases, acquired in-place leases, 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 under the 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 up to 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 revenue. The values of acquired above- and below-market ground leases are amortized over the terms of the related ground leases and recognized as either an increase (for below-market ground leases) or a decrease (for above-market ground leases) to rental operating expense. 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 capitalize project costs, including predevelopment costs, interest, property taxes, insurance, and other costs directly related and essential to the 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. 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 geographic area, (iii) a major equity method investment, or (iv) other major parts of an entity, then the operations of the property, 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 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, if necessary, a probability-weighted approach if multiple outcomes are under consideration. 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 carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used, including our rental properties, CIP, land held for development, and intangibles, 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 carrying amount of the long-lived asset classified as held for sale exceeds its fair value less cost to sell. Because of these two different models, it is possible for a long-lived asset previously classified as held and used to require the recognition of an impairment charge upon classification as held for sale. Investments We hold equity investments in certain publicly traded companies and investments in certain privately held entities and limited partnerships primarily involved in the science and technology industries. All of our equity 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 other 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 require accounting 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 carrying amount of the investment to recognize our share of the earnings or losses of the investee subsequent to the date of our investment. Additionally, we limit our ownership percentage in the voting stock of each individual entity to less than 10% . As of September 30, 2016 , and December 31, 2015 , our ownership percentage in the voting stock of each individual entity was less than 10% . We monitor each of our 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 revenue and tenant recoveries Rental revenue from leases is recognized on a straight-line basis over the respective lease terms. We classify amounts currently recognized as revenue, and expected to be received in later years, as deferred rent in the accompanying consolidated balance sheets. Amounts received currently but recognized as revenue 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 revenue at the date the property is ready for its intended use and the 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 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 tenants to make payments required under the terms of the lease and for tenant recoveries due. If a 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 September 30, 2016 , and December 31, 2015 , we had no allowance for uncollectible tenant receivables and deferred rent. Monitoring tenant credit quality During the term of each lease, we monitor the credit quality of our tenants by (i) monitoring the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the 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 tenants and their respective businesses, and (iv) monitoring the timeliness of lease payments. We have a research team consisting 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 tenants and any material changes in their credit quality. 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 2010-2015 calendar years. Other income The following is a summary of other income in the accompanying consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Management fee income $ 46 $ 530 $ 380 $ 1,341 Interest and other income 795 1,272 2,223 2,136 Investment income 4,266 5,378 18,051 11,211 Total other income $ 5,107 $ 7,180 $ 20,654 $ 14,688 Recent accounting pronouncements On January 1, 2016, we adopted an ASU that requires debt issuance costs, excluding debt issuance costs associated with a line of credit, to be classified in our consolidated balance sheet as a direct deduction from the face amount of the related debt. As a result of adopting the ASU, unamortized deferred financing costs aggregating $30.1 million as of January 1, 2016, were classified with the corresponding debt instrument appearing on our consolidated balance sheet, and deferred financing costs related to our unsecured senior line of credit, aggregating $11.9 million as of January 1, 2016, were classified in other assets. The ASU was applied retrospectively to all prior periods presented in the financial statements. The adoption of this ASU had no impact on our consolidated statements of income. In January 2016, the FASB issued an ASU that amended the accounting for equity investments and the presentation and disclosure requirements for financial instruments. The ASU requires equity investments that have a readily determinable fair value (except those accounted for under the equity method of accounting or that result in consolidation) to be measured at fair value, with the changes in fair value recognized in earnings. Available-for-sale equity securities that under current GAAP require the recognition of unrealized gains and losses in other comprehensive income will no longer be permitted. An election will be available to measure equity investments without a readily determinable fair value at cost less impairments, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Changes in the carrying value from this measurement will also be reported in current earnings. A cumulative-effect adjustment will be recorded to the beginning balance of retained earnings in the reporting period in which the guidance is adopted. The ASU is effective for fiscal years beginning after December 15, 2017. As of September 30, 2016 , we had $28.9 million of net unrealized gains related to our available-for-sale equity securities in publicly traded companies included in accumulated other comprehensive income in our consolidated balance sheets. In February 2016, the FASB issued an ASU that sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The ASU requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The ASU is expected to impact our consolidated financial statements as we have certain operating ground lease arrangements for which we are the lessee. As of September 30, 2016 , the remaining contractual payments under our ground lease agreements aggregated $607.3 million . Additionally, the new ASU will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. Under this ASU, allocated payroll costs and other costs that are incurred regardless of whether the lease is obtained will no longer be capitalized as initial direct costs and instead will be expensed as incurred. Lessors will continue to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The standard permits the use of either the retrospective or modified retrospective transition method. We are currently assessing the potential impact that the adoption of the ASU will have on our consolidated financial statements. In March 2016, the FASB issued an ASU that further clarifies an ASU issued in 2014 on recognition of revenue arising from contracts with customers. The core principle underlying this ASU is that entities will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in such exchange. Leases are specifically excluded from this ASU and will be governed by the applicable lease codification; however, this update may have implications in certain variable payment terms included in lease agreements and in sale and leaseback transactions. The ASU is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017. We are currently assessing the potential impact the adoption of this ASU will have on our consolidated financial statements. In June 2016, the FASB issued an ASU that changes the impairment model for most financial instruments by requiring companies to recognize an allowance for expected losses, rather than incurred losses as required currently by the other-than-temporary impairment model. The ASU will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures (e.g., loan commitments). The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted, and will be applied as a cumulative adjustment to retained earnings as of the effective date. We are currently assessing the potential impact the adoption of this ASU will have on our consolidated financial statements. In August 2016, the FASB issued an ASU that provides guidance on classification of cash distributions received from equity method investments, including unconsolidated joint ventures. The ASU provides two approaches to determine the classification of cash distributions received: i) the “cumulative earnings” approach, under which distributions up to the amount of cumulative equity in earnings recognized will be classified as cash inflows from operating activities, and those in excess of that amount will be classified as cash inflows from investing activities, and ii) the “nature of the distribution” approach, under which distributions will be classified based on the nature of the underlying activity that generated cash distributions. Companies will elect either the “cumulative earnings” or the “nature of the distribution” approach. Entities that elect the “nature of the distribution” approach but lack the information to apply it will apply the cumulative earnings approach as an accounting change on a retrospective basis. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively (exceptions apply). During the nine months ended September 30, 2016 , operating distributions received from our equity method investees aggregated approximately $286 thousand and were classified as cash inflows from operating activities on our consolidated statements of cash flows. We expect to continue to utilize the “nature of the distribution” approach to classify distributions from our equity method investees after the adoption of this ASU. |
Investments in real estate
Investments in real estate | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Investments in real estate | Investments in real estate Our consolidated investments in real estate consisted of the following as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 North America: Land (related to rental properties) $ 763,794 $ 677,649 Buildings and building improvements 7,109,271 6,644,634 Other improvements 371,888 260,605 Rental properties 8,244,953 7,582,888 Development and redevelopment projects (under construction or pre-construction) 875,717 917,706 Future value-creation projects 238,728 206,939 Value-creation pipeline 1,114,445 1,124,645 Gross investments in real estate – North America 9,359,398 8,707,533 Less: accumulated depreciation (1,473,064 ) (1,299,548 ) Net investments in real estate – North America 7,886,334 7,407,985 Net investments in real estate – Asia 52,845 (1) 221,937 Investments in real estate $ 7,939,179 $ 7,629,922 (1) Refer to “Assets located in Asia” in Note 14 – “Assets Classified as Held for Sale” to these unaudited consolidated financial statements for further information. Acquisitions In June 2016, we entered into a definitive agreement to acquire One Kendall Square, a 644,771 RSF, seven-building collaborative science and technology campus located in our Cambridge urban innovation cluster submarket in Greater Boston. One Kendall Square also includes an entitled land parcel providing for a near-term ground-up development of a new 172,500 square foot building. The purchase price is $725.0 million , including the assumption of a $203.0 million secured note payable. The secured note payable has a maturity date of February 2024, and a contractual interest rate of 4.82% . We are in the process of obtaining approval by the lender for the assumption of the secured note payable and expect to close the One Kendall Square acquisition in the fourth quarter of 2016. The One Kendall Square acquisition is subject to customary closing conditions, and there is no assurance that the One Kendall Square acquisition will be completed, or will be completed in the time frame, on the terms or in the manner currently anticipated. Refer to “Forward Equity Sales Agreements” in Note 12 – “Stockholders’ Equity” to these unaudited consolidated financial statements for further discussion. In October 2016, we acquired Torrey Ridge Science Center, a 294,993 RSF, three-building collaborative life science campus located in the heart of our Torrey Pines submarket of San Diego for a purchase price of $182.5 million . The campus is 87.1% occupied and we expect an initial stabilized cash yield of 6.8% at stabilization in the first half of 2018 upon completion of near-term renewals/re-leasing of acquired below-market leases and the conversion of 75,953 RSF existing shell and office space into office/laboratory space. We have an executed agreement for the acquisition of 88 Bluxome Street in our Mission Bay/SoMa submarket of San Francisco for a purchase price of $140.0 million . We are pursuing entitlements for the ground-up development of 1,070,925 RSF, which represents estimated total anticipated RSF upon completion of entitlements for construction of two office buildings in separate phases. The closing date of this acquisition may be deferred to the first quarter of 2017. Upon completion of the acquisition, the seller may lease the property for a term of one year or more depending on certain factors. Investments in consolidated real estate joint ventures In June 2016, we entered into a joint venture agreement with an institutional investor, TIAA Global Asset Management and affiliates (“TIAA”), to sell a 45% partial interest in 10290 Campus Point Drive, a 304,326 RSF redevelopment project in our University Town Center submarket of San Diego, 100% leased to Eli Lilly and Company. The sale of a partial interest in 10290 Campus Point Drive closed on June 29, 2016. Gross proceeds received from our partner as a result of the sale of a partial interest in 10290 Campus Point Drive through September 30, 2016 , were $68.6 million . We retained a controlling interest in the joint venture following the sale and, therefore, continued to consolidate this entity. As a result, we accounted for the proceeds received as an equity financing transaction. The difference of $537 thousand between the aggregate proceeds of $68.6 million received through September 30, 2016 , and our cost basis of $68.0 million was recorded as a reduction to additional paid-in capital. This transaction did not qualify as a sale of real estate and did not result in purchase accounting adjustments to the carrying value. Accordingly, the carrying amounts of our partner’s share of assets and liabilities are reported at historical cost. Our partner is expected to fund substantially all of the remaining costs to complete the redevelopment at 10290 Campus Point Drive and other construction costs of common areas in the campus. We expect to receive additional proceeds from our partner aggregating $37.7 million , which will be used to fund construction. Additionally, in June 2016, we entered into a separate joint venture agreement with TIAA to sell a 45% partial interest in 10300 Campus Point Drive in our University Town Center submarket of San Diego, consisting of 449,759 RSF primarily leased to Celgene Corporation, Eli Lilly and Company, and The Regents of the University of California. The sale of a partial interest in 10300 Campus Point Drive is expected to close in the fourth quarter of 2016. Total gross proceeds from this sale are estimated to be $150.0 million and are expected to be received primarily in the fourth quarter of 2016. As of September 30, 2016 , we have four real estate joint ventures with TIAA, which are VIEs. Through these joint ventures, we own partial interests in the following Class A properties: (i) 225 Binney Street in our Cambridge submarket, (ii) 1500 Owens Street in our Mission Bay/SoMa submarket, (iii) 409/499 Illinois Street in our Mission Bay/SoMa submarket, and (iv) 10290 Campus Point Drive in our University Town Center submarket. Under each of these real estate joint venture arrangements, we are the managing member and earn a fee for continuing to manage the day-to-day operations of each property and, in the case of 10290 Campus Point Drive, for managing the redevelopment construction of the project. For each of our joint ventures with TIAA, we first evaluated the partially owned legal entity that owns the property under the variable interest model to determine whether each entity met any of the three characteristics of a VIE, which are as follows: 1) The entity does not have sufficient equity to finance its activities without additional subordinated financial support. • Each joint venture has significant equity at risk to fund its activities, as the ventures are primarily capitalized by contributions from the members and could obtain, if necessary, non-recourse commercial financing arrangements on customary terms. 2) The entity is established with non-substantive voting rights. • The voting rights of each joint venture require both members to approve major decisions, which results in voting rights that are disproportionate to the members’ economic interest. However, the activities of each joint venture are conducted on behalf of both members, so the voting rights, while disproportionate, are substantive. 3) The equity holders, as a group, lack the characteristics of a controlling financial interest, as evidenced by lack of substantive kick-out rights or substantive participating rights. • The institutional investor lacks substantive kick-out rights as it may not remove us as the managing member without cause. • The institutional investor also lacks substantive participating rights as day-to-day control is vested in us as the managing member and the major decisions that require unanimous consent are primarily protective in nature. Based on the analysis detailed in Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to these unaudited consolidated financial statements, the institutional investor, as the non-managing member of each of the four joint ventures, lacks the characteristics of a controlling financial interest in each of the joint ventures because it does not have substantive kick-out rights or substantive participating rights. Therefore, the joint ventures meet the criteria to be considered VIEs and accordingly, are evaluated for consolidation under the VIE model. After determining that these joint ventures are VIEs, we determined that we are the primary beneficiary of each real estate joint venture, as, in our capacity as managing member, we have the power to make decisions that most significantly impact operations and economic performance of the joint ventures. In addition, through our investment in each joint venture, we have the right to receive benefits and participate in losses that can be significant to the VIEs. Based on this evaluation, we concluded that we are the primary beneficiary of each joint venture, and therefore, we consolidate each entity. The following table aggregates the balance sheet information of our consolidated VIEs as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Investments in real estate $ 802,266 $ 608,474 Cash and cash equivalents 37,566 2,060 Other assets 40,863 37,633 Total assets $ 880,695 $ 648,167 Secured notes payable $ — $ — Other liabilities 75,865 38,666 Total liabilities 75,865 38,666 Alexandria Real Estate Equities, Inc.’s share of equity 432,735 307,220 Noncontrolling interests’ share of equity 372,095 302,281 Total liabilities and equity $ 880,695 $ 648,167 In determining whether to aggregate the balance sheet information of our consolidated VIEs, we considered the similarity of each VIE, including the primary purpose of these entities to own, manage, operate, and lease real estate properties owned by the VIEs, and the similar nature of our involvement in each VIE as a managing member. Due to the similarity of the characteristics of each VIE, we present the balance sheet information of these entities on an aggregated basis. There are no creditors or other partners of our consolidated VIEs who have recourse to our general credit. Our maximum exposure to all our VIEs is limited to our variable interests in each VIE. Purchase of noncontrolling interest During the nine months ended September 30, 2016 , we completed the purchase of the remaining outstanding noncontrolling interest in our campus at Alexandria Technology Square ® in our Cambridge submarket. For additional information, refer to Note 13 – “Noncontrolling Interests” to these unaudited consolidated financial statements. Sale of real estate assets and related impairment charges In April 2016, we completed the sale of a 71,000 RSF R&D/warehouse property, located at 16020 Industrial Drive in our Gaithersburg submarket of Maryland, for approximately $6.4 million at no gain or loss. In May 2016, management committed to the sale of a 4.6 -acre land parcel, located at 14 Firstfield Road in our Gaithersburg submarket of Maryland and evaluated the asset under the held for sale impairment model. Accordingly, we assessed the fair value of the property and determined that the carrying value of the property exceeded its fair value. As a result, we recognized an impairment charge of $863 thousand in May 2016. In June 2016, we completed the sale of the property for approximately $3.5 million at no gain or loss. In September 2016, we sold land parcels aggregating 1.3 acres in our non-cluster market in North America for approximately $5.2 million and recognized a gain of $90 thousand in connection with this sale. For information on assets held for sale and assets sold in Asia, refer to “Assets Located in Asia” in Note 14 – “Assets Classified as Held for Sale” to these unaudited consolidated financial statements. |
Investment in unconsolidated re
Investment in unconsolidated real estate joint ventures | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in unconsolidated real estate joint ventures | Investments in unconsolidated real estate joint ventures 360 Longwood Avenue We have a 27.5% effective interest in this real estate joint venture that is currently developing a building aggregating 413,799 RSF in our Longwood Medical Area submarket of Greater Boston. The cost at completion for this real estate project is expected to be approximately $350 million . As of September 30, 2016 , the joint venture had 313,407 RSF, or 76% of the project, leased and in service. Our equity investment in this real estate joint venture was $50.2 million as of September 30, 2016 . The real estate joint venture has a non-recourse, secured construction loan (“Longwood Construction Loan”) that includes the following key terms (dollars in thousands): Tranche Maturity Date Stated Rate Outstanding Balance Remaining Commitments Total Fixed rate April 1, 2017 (1 ) 5.25 % $ 173,226 $ 2,015 $ 175,241 Floating rate (2) April 1, 2017 (1 ) L+3.75 % 8,081 29,878 37,959 181,307 $ 31,893 $ 213,200 Unamortized deferred financing costs 235 $ 181,072 (1) We have two , one -year options to extend the stated maturity date to April 1, 2019, subject to certain conditions. (2) Borrowings under the floating rate tranche have an interest rate floor equal to 5.25% , and are subject to an interest rate cap on LIBOR of 3.50% . 1455/1515 Third Street We have a real estate joint venture with an affiliate of Uber Technologies, Inc. (“Uber”), for the development of two buildings aggregating 422,980 RSF at 1455/1515 Third Street in our Mission Bay/SoMa submarket of San Francisco. We have a 51% interest, and Uber has a 49% interest, in this real estate joint venture. The project is 100% leased to Uber for a 15 -year term. Our equity investment in the real estate joint venture aggregated $83.4 million as of September 30, 2016 . As described in Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to these unaudited consolidated financial statements, we evaluate each of our unconsolidated real estate joint ventures, which are limited liability companies, using the consolidation guidance under the variable interest model first, and then under the voting model if the entity is not a VIE. We evaluated our 360 Longwood Avenue joint venture (27.5% interest held by the Company) and our 1455/1515 Third Street joint venture (51% interest held by the Company) under the variable interest model, based upon the following characteristics of a VIE: 1) The entity does not have sufficient equity to finance its activities without additional subordinated financial support. • 360 Longwood Avenue – This entity has significant equity and non-recourse financing in place to fund the remainder of the development. • 1455/1515 Third Street – This entity has significant equity, and non-recourse financing is available, to fund the remainder of the development. 2) The entity is established with non-substantive voting rights. • 360 Longwood Avenue – Our 27.5% economic interest in 360 Longwood Avenue consists of an interest in a real estate joint venture with a development partner. The joint venture with our development partner holds an interest in the property with an institutional investor. Our development partner is responsible for the day-to-day management of construction and development activities, and we are responsible for the day-to-day administrative operations of components of the property once it is placed into service following development completion. At the property level, all major decisions (including the development plan, annual budget, leasing plan, and financing plan) require approval of all three investors. Although voting rights within the structure are disproportionate to the members’ economic interests, the activities of the ventures are conducted on behalf of all members, and therefore, the voting rights, while disproportionate, are substantive. • 1455/1515 Third Street – We hold a 51% economic interest in this real estate joint venture, and our joint venture partner holds a 49% economic interest. However, both members are required to approve major decisions, resulting in equal voting rights. Although voting rights within the structure are disproportionate to the members’ economic interests, the activities of the ventures are conducted on behalf of both members, and therefore, the voting rights, while disproportionate, are substantive. 3) The equity holders, as a group, lack the characteristics of a controlling financial interest, as evidenced by lack of substantive kick-out rights or substantive participating rights. • 360 Longwood Avenue – The other members have significant participating rights, including the day-to-day management of development activities and the participation in decisions related to the operations of the property. • 1455/1515 Third Street – Our joint venture partner has significant participating rights, including joint decision making for the design of the project, overall development costs, future potential financing and operating activities of the joint venture, and disposal of the assets held by the joint venture. Since the joint ventures do not meet the VIE criteria, we determined that these entities do not qualify for evaluation under the VIE model. Therefore, we evaluate each of these joint ventures under the voting model. Under the voting model, we consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting shares and that noncontrolling equity holders do not have substantive participating rights. For our 360 Longwood Avenue joint venture, our interest is limited to 27.5%, and since we do not have other contractual rights, we account for this joint venture under the equity method of accounting. For our 1455/1515 Third Street joint venture, both members have substantive participating rights, and therefore, we also account for this joint venture under the equity method of accounting. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Investments | Investments We hold equity investments in certain publicly traded companies and investments in certain privately held entities and limited partnerships primarily involved in the science and technology industries. All of our equity investments in actively traded public companies are considered available-for-sale and are reflected in the accompanying consolidated balance sheets at fair value. Our investments in privately held entities are primarily accounted for under the cost method. Investments in available-for-sale equity securities with gross unrealized losses as of September 30, 2016 , 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. Accordingly, there are no other-than-temporary impairments in accumulated other comprehensive income related to available-for-sale equity securities as of September 30, 2016 , or December 31, 2015 . The following table summarizes our investments as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Available-for-sale equity securities, cost basis $ 40,090 $ 20,022 Unrealized gains 33,182 118,392 Unrealized losses (4,265 ) (793 ) Available-for-sale equity securities, at fair value 69,007 137,621 Investments accounted for under cost method 251,982 215,844 Total investments $ 320,989 $ 353,465 We periodically assess our investments in privately held companies accounted for under the cost method for other-than-temporary impairment. 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. During the three months ended September 30, 2016 , we determined there was an other-than-temporary impairment on certain of our cost method investments and wrote the investment down to fair value. The impairment charge is included in the investment losses for the three and nine months ended September 30, 2016 , presented in the table below, which outlines the components of our investment income classified within other income in the accompanying consolidated statements of income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Investment gains $ 8,115 $ 8,658 $ 28,721 $ 22,368 Investment losses (3,849 ) (3,280 ) (10,670 ) (11,157 ) Investment income $ 4,266 $ 5,378 $ 18,051 $ 11,211 |
Other assets
Other assets | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other assets | Other assets The following table summarizes the components of other assets as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Acquired below-market ground leases $ 12,970 $ 13,142 Acquired in-place leases 24,616 27,997 Deferred compensation plan 10,667 8,489 Deferred financing costs – $1.65 billion unsecured senior line of credit 15,168 11,909 Deposits 75,474 (1) 3,713 Furniture, fixtures, and equipment, net 13,379 13,682 Interest rate hedge assets 180 596 Notes receivable 6,876 16,630 Prepaid expenses 13,945 17,651 Real estate 18,612 — Other assets 14,246 19,503 Total $ 206,133 $ 133,312 (1) Includes a $60.0 million deposit for the acquisition of One Kendall Square located in our Cambridge urban innovation cluster submarket of Greater Boston. |
Fair value measurements
Fair value measurements | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2016 and 2015 . The following tables set forth the assets and liabilities that we measure at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Available-for-sale equity securities $ 69,007 $ 69,007 $ — $ — Interest rate hedge agreements $ 180 $ — $ 180 $ — Liabilities: Interest rate hedge agreements $ 7,705 $ — $ 7,705 $ — December 31, 2015 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Available-for-sale equity securities $ 137,621 $ 137,621 $ — $ — Interest rate hedge agreements $ 596 $ — $ 596 $ — Liabilities: Interest rate hedge agreements $ 4,314 $ — $ 4,314 $ — 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 equity securities and our interest rate hedge agreements have been recognized at fair value. Refer to Note 5 – “Investments” and Note 9 – “Interest Rate Hedge Agreements” to these unaudited consolidated financial statements for further details. The fair values of our secured notes payable, unsecured senior notes payable, $1.65 billion unsecured senior line of credit, and unsecured senior bank term loans were estimated using widely accepted valuation techniques, including discounted cash flow analyses using significant other observable inputs such as available market information on discount and borrowing rates with similar terms, maturities, and credit ratings. Because the valuations of our financial instruments are based on these types of estimates, the actual fair value of our financial instruments may differ materially if our estimates do not prove to be accurate. Additionally, the use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. As of September 30, 2016 , and December 31, 2015 , the book and estimated fair values of our available-for-sale equity securities, interest rate hedge agreements, secured notes payable, unsecured senior notes payable, $1.65 billion unsecured senior line of credit, and unsecured senior bank term loans were as follows (in thousands): September 30, 2016 December 31, 2015 Book Value Fair Value Book Value Fair Value Assets: Available-for-sale equity securities $ 69,007 $ 69,007 $ 137,621 $ 137,621 Interest rate hedge agreements $ 180 $ 180 $ 596 $ 596 Liabilities: Interest rate hedge agreements $ 7,705 $ 7,705 $ 4,314 $ 4,314 Secured notes payable $ 789,450 $ 802,722 $ 809,818 $ 832,342 Unsecured senior notes payable $ 2,377,482 $ 2,551,835 $ 2,030,631 $ 2,059,855 $1.65 billion unsecured senior line of credit $ 416,000 $ 415,962 $ 151,000 $ 151,450 Unsecured senior bank term loans $ 746,162 $ 750,746 $ 944,243 $ 951,098 Nonrecurring fair value measurements Refer to “Assets Located in Asia” in Note 14 – “Assets Classified as Held for Sale” to these unaudited consolidated financial statements for further discussion. |
Secured and unsecured senior de
Secured and unsecured senior debt | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 (dollars in thousands): Fixed-Rate/Hedged Variable-Rate Unhedged Variable-Rate Weighted-Average Interest Remaining Term (in years) Total Percentage Rate (1) Secured notes payable $ 419,276 $ 370,174 $ 789,450 18.2 % 3.34 % 2.6 Unsecured senior notes payable 2,377,482 — 2,377,482 55.0 4.14 7.5 $1.65 billion unsecured senior line of credit 200,000 216,000 416,000 9.6 1.52 5.1 2019 Unsecured Senior Bank Term Loan 398,355 — 398,355 9.2 3.03 2.3 2021 Unsecured Senior Bank Term Loan 347,807 — 347,807 8.0 2.18 4.3 Total/weighted average $ 3,742,920 $ 586,174 $ 4,329,094 100.0 % 3.49 % 5.6 Percentage of total debt 86% 14% 100% (1) See footnote 1 on the page 24 for additional information on weighted-average interest rate. The following table summarizes our outstanding indebtedness and respective principal payments as of September 30, 2016 (dollars in thousands): Stated Rate Weighted-Average Interest Rate Maturity Principal Payments Remaining for the Periods Ending December 31, Unamortized (Deferred Financing Cost), (Discount)/Premium Debt (1) Date (2) 2016 2017 2018 2019 2020 Thereafter Principal Total Secured notes payable Maryland 2.44 % 2.81 % 1/20/17 (3) $ — $ 76,000 $ — $ — $ — $ — $ 76,000 $ (86 ) $ 75,914 Greater Boston L+1.35 2.47 8/23/17 (4) — 210,464 — — — — 210,464 (1,268 ) 209,196 Greater Boston L+1.50 1.85 1/28/19 (4) — — — 213,969 — — 213,969 (2,781 ) 211,188 Greater Boston L+2.00 2.79 4/20/19 (4) — — — 64,256 — — 64,256 (3,410 ) 60,846 Greater Boston, San Diego, Seattle, and Maryland 7.75 8.10 4/1/20 437 1,833 1,979 2,140 104,351 — 110,740 (1,169 ) 109,571 San Diego 4.66 4.99 1/1/23 370 1,540 1,614 1,692 1,770 29,905 36,891 (412 ) 36,479 Greater Boston 3.93 3.18 3/10/23 — — 1,091 1,505 1,566 77,838 82,000 3,463 85,463 San Francisco 6.50 6.76 7/1/36 — 20 22 23 25 703 793 — 793 Secured debt weighted-average interest rate/subtotal 3.32 % 3.34 807 289,857 4,706 283,585 107,712 108,446 795,113 (5,663 ) 789,450 2019 Unsecured Senior Bank Term Loan L+1.20 % 3.03 1/3/19 — — — 400,000 — — 400,000 (1,645 ) 398,355 2021 Unsecured Senior Bank Term Loan L+1.10 % 2.18 1/15/21 — — — — — 350,000 350,000 (2,193 ) 347,807 $1.65 billion unsecured senior line of credit L+1.00 % (5) 1.52 10/29/21 — — — — — 416,000 416,000 — 416,000 Unsecured senior notes payable 2.75 % 2.95 1/15/20 — — — — 400,000 — 400,000 (2,601 ) 397,399 Unsecured senior notes payable 4.60 % 4.72 4/1/22 — — — — — 550,000 550,000 (3,563 ) 546,437 Unsecured senior notes payable 3.90 % 4.02 6/15/23 — — — — — 500,000 500,000 (3,954 ) 496,046 Unsecured senior notes payable 4.30 % 4.46 1/15/26 — — — — — 300,000 300,000 (4,455 ) 295,545 Unsecured senior notes payable 3.95 % 4.11 1/15/27 — — — — — 350,000 350,000 (5,114 ) 344,886 Unsecured senior notes payable 4.50 % 4.58 7/30/29 — — — — — 300,000 300,000 (2,831 ) 297,169 Unsecured debt weighted average/subtotal 3.52 — — — 400,000 400,000 2,766,000 3,566,000 (26,356 ) 3,539,644 Weighted-average interest rate/total 3.49 % $ 807 $ 289,857 $ 4,706 $ 683,585 $ 507,712 $ 2,874,446 $ 4,361,113 $ (32,019 ) $ 4,329,094 Balloon payments $ — $ 286,464 $ — $ 678,226 $ 503,979 $ 2,866,487 $ 4,335,156 $ — $ 4,335,156 Principal amortization 807 3,393 4,706 5,359 3,733 7,959 25,957 (32,019 ) (6,062 ) Total debt $ 807 $ 289,857 $ 4,706 $ 683,585 $ 507,712 $ 2,874,446 $ 4,361,113 $ (32,019 ) $ 4,329,094 Fixed-rate/hedged variable-rate debt $ 807 $ 153,393 $ 4,706 $ 445,359 $ 507,712 $ 2,658,446 $ 3,770,423 $ (27,503 ) $ 3,742,920 Unhedged variable-rate debt — 136,464 — 238,226 — 216,000 590,690 (4,516 ) 586,174 Total debt $ 807 $ 289,857 $ 4,706 $ 683,585 $ 507,712 $ 2,874,446 $ 4,361,113 $ (32,019 ) $ 4,329,094 (1) Represents the weighted-average interest rate as of the end of the applicable period, plus the impact of debt premiums/discounts, interest rate hedge agreements, and deferred financing costs. (2) Reflects any extension options that we control. (3) We intend to repay this loan in December 2016 in advance of its maturity date of January 20, 2017. (4) Refer to “Secured Construction Loans” in Note 8 – “Secured and Unsecured Senior Debt” for options to extend maturity dates. (5) Our $1.65 billion 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. In addition to the cost of borrowing, the facility is subject to an annual facility fee of 0.20% , based on the aggregate commitments. Unamortized deferred financing costs related to our $1.65 billion unsecured senior line of credit are classified in other assets and are excluded from the calculation of the weighted-average interest rate. 3.95% Unsecured senior notes payable In June 2016, we completed a $350.0 million public offering of our unsecured senior notes payable due on January 15, 2027 , at a stated interest rate of 3.95% . The unsecured senior notes payable are unsecured obligations of the Company and are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P., a 100% owned subsidiary of the Company. The unsecured senior notes payable rank equally in right of payment with all other unsecured senior indebtedness. However, the unsecured senior notes payable are subordinate to existing and future mortgages and other secured indebtedness (to the extent of the value of the collateral securing such indebtedness) and to all existing and future preferred equity and liabilities, whether secured or unsecured, of the Company’s subsidiaries, other than Alexandria Real Estate Equities, L.P. We used the net proceeds, after discounts and issuance costs, of $344.7 million to repay outstanding principal borrowings under our $1.65 billion unsecured senior line of credit. Amendment of unsecured senior line of credit and unsecured senior bank term loans On July 29, 2016, we amended our unsecured senior line of credit (the “Amended Credit Agreement”) and recognized a loss on early extinguishment of debt of approximately $2.4 million related to the write-off of unamortized loan fees. The key changes are summarized below: Amended Agreement Prior Agreement Commitments $1.65 billion $1.50 billion Interest rate LIBOR+1.00% LIBOR+1.10% Maturity date October 29, 2021 (1) January 3, 2019 (1) Includes two , six -months options to extend from the stated maturity date of October 29, 2020, subject to certain conditions. In addition, on July 29, 2016, we completed a partial principal repayment of $200 million of our 2019 Unsecured Senior Bank Term Loan reducing the total outstanding balance from $600 million to $400 million , and recognized a loss on early extinguishment of debt of $869 thousand related to the write-off of unamortized loan fees. Interest expense The following table summarizes interest expense for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Gross interest $ 40,753 $ 36,115 $ 116,520 $ 105,427 Capitalized interest (14,903 ) (8,436 ) (40,790 ) (27,844 ) Interest expense $ 25,850 $ 27,679 $ 75,730 $ 77,583 Repayment of secured notes payable During the nine months ended September 30, 2016 , we repaid five secured notes payable aggregating $231.0 million with a weighted-average effective interest rate of 5.29% . Secured construction loans The following table summarizes our secured construction loans as of September 30, 2016 (dollars in thousands): Property/Market Stated Rate Maturity Date Outstanding Balance Remaining Commitments Total Aggregate Commitments 75/125 Binney Street/Greater Boston L+1.35 % 8/23/17 $ 210,464 $ 39,936 $ 250,400 50/60 Binney Street/Greater Boston L+1.50 % 1/28/19 (1) 213,969 136,031 350,000 100 Binney Street/Greater Boston L+2.00 % (2) 4/20/19 (3) 64,256 240,025 304,281 $ 488,689 $ 415,992 $ 904,681 (1) We have two , one -year options to extend the stated maturity date to January 28, 2021, subject to certain conditions. (2) Refer to Note 9 – “Interest Rate Hedge Agreements” to these unaudited consolidated financial statements for further information. (3) We have two , one -year options to extend the stated maturity date to April 20, 2021, subject to certain conditions. |
Interest rate hedge agreements
Interest rate hedge agreements | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate hedge agreements | Interest rate hedge agreements We use interest rate derivatives to hedge the variable cash flows associated with certain of our existing LIBOR-based variable-rate debt, including our $1.65 billion unsecured senior line of credit, unsecured senior bank term loans, and secured notes payable, and to manage our exposure to interest rate volatility. Our derivative instruments include interest rate swaps and interest rate caps. In our interest rate hedge agreements, the ineffective portion of the change in fair value is required to be recognized directly in earnings. During the nine months ended September 30, 2016 and 2015 , our interest rate hedge agreements were 100% effective; as a result, 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 hedge agreements that are designated and that qualify as cash flow hedges are classified in accumulated other comprehensive income. Amounts classified in accumulated other comprehensive income 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 $5.2 million in accumulated other comprehensive income to earnings as an increase to interest expense. As of September 30, 2016 , and December 31, 2015 , the fair values of our interest rate swap and cap agreements aggregating an asset balance were classified in other assets, and the fair value of our interest rate swap agreements aggregating a liability balance 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. Refer to Note 7 – “Fair Value Measurements” to these unaudited consolidated financial statements for further details. Under our interest rate hedge 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 September 30, 2016 , it could have been required to settle its obligations under the agreements at their termination value of $7.5 million . We had the following outstanding interest rate hedge agreements that were designated as cash flow hedges of interest rate risk as of September 30, 2016 (dollars in thousands): Interest Rate Hedge Type Number of Contracts Weighted-Average Interest Pay/Cap Rate (1) Fair Value as of 9/30/16 Notional Amount in Effect as of Effective Date Maturity Date 9/30/16 12/31/16 12/31/17 12/31/18 Swap September 1, 2015 March 31, 2017 2 0.57% $ 18 $ 100,000 $ 100,000 $ — $ — Swap March 31, 2016 March 31, 2017 11 1.15% (2,691 ) 1,000,000 1,000,000 — — Swap March 31, 2017 March 31, 2018 15 1.31% (4,592 ) — — 900,000 — Swap March 29, 2018 March 31, 2019 6 1.01% (374 ) — — — 450,000 Cap July 29, 2016 April 20, 2019 2 2.00% 114 40,000 55,000 126,000 150,000 Total $ (7,525 ) (2) $ 1,140,000 $ 1,155,000 $ 1,026,000 $ 600,000 (1) In addition to the interest pay rate for each swap agreement, interest is payable at an applicable margin over LIBOR for borrowings outstanding as of September 30, 2016 , as listed under the column heading “Stated Rate” in our summary table of outstanding indebtedness and respective principal payments under Note 8 – “Secured and Unsecured Senior Debt” to these unaudited consolidated financial statements. (2) This total represents the net of the fair value of interest rate hedges in a liability position of $7.7 million and fair value of interest rate hedges in an asset position of $180 thousand . Refer to Note 7 – “Fair Value Measurements” to these unaudited consolidated financial statements for further information. |
Accounts payable, accrued expen
Accounts payable, accrued expenses, and tenant security deposits | 9 Months Ended |
Sep. 30, 2016 | |
Accounts payable, accrued expenses, and tenant security deposits [Abstract] | |
Accounts payable, accrued expenses, and tenant security deposits | 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 September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Accounts payable and accrued expenses $ 269,915 $ 239,838 Acquired below-market leases 22,940 26,018 Conditional asset retirement obligations 3,636 5,777 Deferred rent liabilities 34,783 27,664 Interest rate hedge liabilities 7,705 4,314 Unearned rent and tenant security deposits 218,309 211,605 Other liabilities 47,893 74,140 Total $ 605,181 $ 589,356 Some of our properties may contain asbestos, which, under certain conditions, requires remediation. Although we believe that the asbestos is appropriately contained in accordance with environmental regulations, our practice is to remediate the asbestos upon the development or redevelopment of the affected property. We recognize a liability for the fair value of a conditional asset retirement obligation (including asbestos) when the fair value of the liability can be reasonably estimated. In addition, for certain properties, we have not recognized an asset retirement obligation when there is an indeterminate settlement date for the obligation because the period in which we may remediate the obligation may not be estimated with any level of precision to provide for a meaningful estimate of the retirement obligation. These conditional asset retirement obligations are included in the table above. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Earnings per share | Earnings per share We use income from continuing operations attributable to Alexandria’s common stockholders as the “control number” in determining whether potential common shares are dilutive or antidilutive to 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. In July 2016, we executed an offering, subject to forward equity sales agreements, to sell an aggregate of 7.5 million shares of common stock, including 975,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of our common stock, at a public offering price of $101.00 per share, subject to customary contractual price adjustments. Net proceeds, after issuance costs and underwriters’ discount, of $724.0 million , will be further adjusted as provided in the forward equity sales agreements. The forward equity sales agreements allowed us to lock in the price of the shares (subject to certain adjustments) to fund the pending acquisition of One Kendall Square. We expect to settle the forward equity sales agreements by issuing the common stock in the fourth quarter of 2016 after obtaining approval by the lender to assume the One Kendall Square loan and completing the acquisition of One Kendall Square. Refer to “Acquisitions” in Note 3 – “Investments in Real Estate” and “Forward Equity Sales Agreements” in Note 12 – “Stockholders’ Equity” to these unaudited consolidated financial statements for further discussion. Weighted average shares outstanding – diluted used in computation of EPS for the three months ended September 30, 2016 include shares from the assumed issuance of 7.5 million shares pursuant to the settlement of the forward equity sales agreements at the contractual price, less assumed repurchase of common shares at the average market price using the net proceeds of $724.0 million from the forward equity sales agreements. The impact to our weighted average shares – diluted for the three months ended September 30, 2016 was 751 thousand weighted average incremental shares. Conversely, these shares were not included in the calculation of diluted EPS for the nine months ended September 30, 2016 as the Company had a net loss during that period and, therefore, the effect of the forward equity sales agreements was antidilutive. For purposes of calculating diluted EPS, we did not assume conversion of our 7.00% Series D cumulative convertible preferred stock for the three and nine months ended September 30, 2016 and 2015 , since the impact was antidilutive to EPS attributable to Alexandria Real Estate Equities, Inc.’s common stockholders from continuing operations during those periods. Our 6.45% Series E cumulative redeemable preferred stock is not convertible to common stock and, therefore, is not dilutive. 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 7.00% Series D cumulative convertible preferred stock and forward equity sales agreements are not participating securities, and are 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. The table below is a reconciliation of the numerators and denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2016 and 2015 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Income (loss) from continuing operations $ 28,469 $ 39,699 $ (69,681 ) $ 103,180 Gain on sales of real estate – land parcels 90 — 90 — Net income attributable to noncontrolling interests (4,084 ) (170 ) (11,614 ) (925 ) Dividends on preferred stock (5,007 ) (6,247 ) (16,388 ) (18,740 ) Preferred stock redemption charge (13,095 ) — (25,614 ) — Net income attributable to unvested restricted stock awards (921 ) (623 ) (2,807 ) (1,736 ) Numerator for basic and diluted EPS – net income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders 5,452 32,659 (126,014 ) 81,779 Loss from discontinued operations — — — (43 ) Numerator for basic and diluted EPS – net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 5,452 $ 32,659 $ (126,014 ) $ 81,736 Denominator for basic EPS – weighted-average shares of common stock outstanding 76,651 71,500 74,526 71,426 Dilutive effect of forward equity sales agreements 751 — — — Denominator for diluted EPS – adjusted – weighted-average shares of common stock outstanding 77,402 71,500 74,526 71,426 Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted: Continuing operations $ 0.07 $ 0.46 $ (1.69 ) $ 1.14 Discontinued operations — — — — Net income (loss) per share $ 0.07 $ 0.46 $ (1.69 ) $ 1.14 |
Stockholders' equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' equity | Stockholders’ equity “At the market” common stock offering program During the six months ended June 30, 2016, we completed our “at the market” common stock offering program that was established in December 2015, which allowed us to sell up to an aggregate of $450.0 million of our common stock. In December 2015, we sold an aggregate of 832,982 shares of common stock for a gross proceeds of $75.0 million , or $90.04 per share, and net proceeds of approximately $73.4 million . During the six months ended June 30, 2016, we sold an aggregate of 3.9 million shares of common stock for gross proceeds of $374.3 million , or $94.80 per share, and net proceeds of approximately $367.8 million . We used the proceeds from the sales initially to reduce amounts outstanding under our $1.65 billion unsecured senior line of credit. As of September 30, 2016, there was no remaining availability under our “at the market” program. In October 2016, we established a new “at the market” common stock offering program, which allows us to sell up to an aggregate of $600.0 million of our common stock. In October 2016, we sold an aggregate of 1.4 million shares of common stock for gross proceeds of $150.0 million , or $104.28 per share, and net proceeds of approximately $147.7 million . Forward equity sales agreements In July 2016, we executed an offering, subject to forward equity sales agreements, to sell an aggregate of 7.5 million shares of common stock, including 975,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of our common stock, at a public offering price of $101.00 per share. Net proceeds, after issuance costs and underwriters’ discount, of $724.0 million , will be further adjusted as provided in the forward equity sales agreements. The forward equity sales agreements allowed us to lock in the price of the shares (subject to certain adjustments) to fund the pending acquisition of One Kendall Square. Settlement may be (i) physical delivery of shares of our common stock for cash, (ii) net cash settlement, whereby we will either pay or receive the difference between the forward contract price and the weighted average market price for our common stock at the time of settlement, or (iii) net share settlement, whereby we will either receive or issue shares of our common stock, with the number of shares issued or received determined by the difference between the forward contract price and the weighted average market price for its common stock at the time of settlement. The forward contract price will be determined under the applicable terms of the forward contract. Under either of the net settlement provisions, we will pay to the counterparty either cash or shares of common stock when the weighted average market price of our common stock at the time of settlement exceeds the forward contract price, and will receive either cash or shares of common stock to the extent that the weighted average market price of our common stock at the time of settlement is less than the price under the forward contract. Subject to our contractual right to elect cash or net share settlement, we expect to settle the forward equity sales agreements by issuing the common stock after obtaining approval by the lender to assume the One Kendall Square loan and completing the acquisition of One Kendall Square. Refer to “Acquisitions” in Note 3 – “Investments in Real Estate” to these unaudited consolidated financial statements for further discussion. 7.00% Series D cumulative convertible preferred stock redemption During the three months ended September 30, 2016 , we repurchased 1.1 million outstanding shares of our 7.00% Series D cumulative convertible preferred stock at an aggregate price of $39.3 million , or $36.31 per share. We recognized a preferred stock redemption charge of $13.1 million during the three months ended September 30, 2016 , including the write-off of original issuance costs of approximately $845 thousand . During the nine months ended September 30, 2016 , we repurchased 3.0 million outstanding shares of our 7.00% Series D cumulative convertible preferred stock at an aggregate price of $98.6 million , or $32.72 per share. We recognized a preferred stock redemption charge of $25.6 million during the nine months ended September 30, 2016 , including the write-off of original issuance costs of approximately $2.4 million . In October 2016, we repurchased 1.5 million shares of our 7.00% Series D cumulative convertible preferred stock at an aggregate price of $52.8 million , or $36.07 per share. As of October 31, 2016 the par value of our 7.00% Series D cumulative convertible preferred stock outstanding was $125.2 million . Dividends In September 2016, we declared cash dividends on our common stock for the three months ended September 30, 2016 , aggregating $62.4 million , or $0.80 per share. Also in September 2016, we declared cash dividends on our 7.00% Series D cumulative convertible preferred stock for the three months ended September 30, 2016 , aggregating approximately $2.8 million , or $0.4375 per share. Additionally, we declared cash dividends on our 6.45% Series E cumulative redeemable preferred stock for the three months ended September 30, 2016 , aggregating approximately $2.1 million , or $0.403125 per share. In October 2016, we paid the cash dividends on our common stock, 7.00% Series D cumulative convertible preferred stock, and 6.45% Series E cumulative redeemable preferred stock for the three months ended September 30, 2016 . Accumulated other comprehensive income Accumulated other comprehensive income attributable to Alexandria consists of the following (in thousands): Net Unrealized Gain (Loss) on: Available-for- Sale Equity Securities Interest Rate Foreign Currency Translation Total Balance as of December 31, 2015 $ 117,599 $ (3,718 ) $ (64,690 ) $ 49,191 Other comprehensive (loss) income before reclassifications (70,055 ) (7,655 ) 842 (76,868 ) Amounts reclassified from other comprehensive (income) loss (18,627 ) 3,725 10,807 (4,095 ) (88,682 ) (3,930 ) 11,649 (80,963 ) Amounts attributable to noncontrolling interests — — 27 27 Net other comprehensive (loss) income (88,682 ) (3,930 ) 11,676 (80,936 ) Balance as of September 30, 2016 $ 28,917 $ (7,648 ) $ (53,014 ) $ (31,745 ) Preferred stock and excess stock authorizations Our charter authorizes the issuance of up to 100.0 million shares of preferred stock, of which 11.7 million shares were issued and outstanding as of September 30, 2016 . 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 September 30, 2016 . |
Noncontrolling interests
Noncontrolling interests | 9 Months Ended |
Sep. 30, 2016 | |
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 nine projects as of September 30, 2016 , 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. 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 campus at Alexandria Technology Square ® in our Cambridge submarket 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 was paid on April 1, 2016. In June 2016, we sold a partial interest in 10290 Campus Point Drive. As described in Note 3 – “Investments in Real Estate” to these unaudited consolidated financial statements, since we retained a controlling interest in the joint venture following the sale and continued to consolidate this entity, we accounted for the proceeds received as an equity financing transaction. The difference of $537 thousand between the aggregate proceeds of approximately $68.6 million received through September 30, 2016 and our cost basis of $68.0 million was recorded as a reduction to additional paid-in capital. This transaction did not qualify as a sale of real estate and did not result in purchase accounting adjustments to the carrying value. Accordingly, the carrying amounts of our partner’s share of assets and liabilities are reported at historical cost. 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. 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. The following table represents income from continuing operations and discontinued operations attributable to Alexandria Real Estate Equities, Inc., for the three and nine months ended September 30, 2016 and 2015, excluding the amounts attributable to these noncontrolling interests (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s stockholders $ 24,475 $ 39,529 $ (81,205 ) $ 102,255 Loss from discontinued operations — — — (43 ) Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s stockholders $ 24,475 $ 39,529 $ (81,205 ) $ 102,212 |
Assets classified as held for s
Assets classified as held for sale | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets classified as held for sale | Assets classified as held for sale As of September 30, 2016 , two operating properties in North America with an aggregate 90,690 RSF and all our operating properties and land parcels located in Asia were classified as held for sale, none of which met the criteria for classification as discontinued operations in our consolidated financial statements. Accordingly, the results of operations include properties sold subsequent to January 1, 2015, including two properties with an aggregate 153,874 RSF and three land parcels. For additional information, refer to Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to these unaudited consolidated financial statements. Assets located in North America The following is a summary of net assets held for sale in North America as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Total assets $ 15,456 $ 12,896 Total liabilities — — Net assets classified as held for sale – North America $ 15,456 $ 12,896 The following is a summary of operating information of our real estate investments in North America classified as held for sale as of September 30, 2016 , and real estate investments in North America sold subsequent to January 1, 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total revenues $ 540 $ 1,304 $ 2,322 $ 3,551 Operating expenses (128 ) (779 ) (734 ) (1,960 ) 412 525 1,588 1,591 General and administrative expenses (5 ) (25 ) (37 ) (43 ) Depreciation expense (3 ) (195 ) (131 ) (989 ) Impairment of real estate — — (863 ) — Gain on sales of real estate – land parcels 90 — 90 — Income from assets classified as held for sale – North America $ 494 $ 305 $ 647 $ 559 Assets located in Asia On March 31, 2016, we evaluated two separate potential transactions to sell land parcels in our India submarket aggregating 28 acres. We determined that these land parcels met the criteria for classification as held for sale as of March 31, 2016, including among others, the following: (i) management having the authority committed to sell the real estate, and (ii) the sale was probable within one year. Upon classification as held for sale, we recognized an impairment charge of $29.0 million to lower the carrying amount of the real estate to its estimated fair value less cost to sell of approximately $10.2 million . In determining the carrying amount for evaluating the real estate for impairment, we considered our net book value, costs to sell, and a $10.6 million cumulative foreign currency translation loss. During the nine months ended September 30, 2016 , we sold these two land parcels for an aggregate sales price of $12.8 million at no gain or loss. On April 22, 2016, we decided to monetize our remaining real estate investments located in Asia in order to invest capital into our highly leased value-creation pipeline. We determined that these investments met the criteria for classification as held for sale when we achieved the following, among other criteria: (i) committed to sell all of our real estate investments in Asia, (ii) obtained approval from our Board of Directors, and (iii) determined that the sale of each property/land parcel was probable within one year. During the three months ended June 30, 2016, we recognized an impairment charge of $154.1 million related to our remaining real estate investments located in Asia, to lower the carrying costs of the real estate to its estimated fair value less costs to sell. In determining the carrying amount for evaluating the real estate for impairment, we considered our net book value, costs to sell, and a $40.2 million cumulative foreign currency translation loss. As of September 30, 2016 , we had eight operating properties aggregating 1.2 million RSF and land parcels aggregating 168 acres remaining in Asia, which continued to meet the classification as held for sale. During the three months ended September 30, 2016 , we updated our assumptions of fair value for the remaining real estate investments located in Asia and, as a result, we recognized an additional impairment charge of $7.3 million . The following is a summary of completed and remaining dispositions of our real estate investments in Asia as of September 30, 2016 . We expect to complete the transactions of our remaining real estate investments in Asia over the next several quarters and to recover our remaining net book value, after disposition costs, from sales of the remaining real estate investments located in Asia classified as held for sale as of September 30, 2016 . Rental Properties Land Parcels Number RSF Number Acres Sales Price Completed dispositions as of September 30, 2016 — — 2 28 $ 12,767 Completed dispositions in October 2016 6 566,355 2 109 39,590 Remaining assets held for sale (1) 2 634,328 2 59 53,600 Total 8 1,200,683 6 196 $ 105,957 (1) Remaining assets held for sale consist of two operating properties located in China and two land parcels in India. The fair value considered in our impairment of each investment was determined based on the following: (i) preliminary non-binding letters of intent, (ii) significant other observable inputs, including the consideration of certain local government land acquisition programs, and (iii) discounted cash flow analyses. We evaluated whether our real estate investments in Asia met the criteria for classification as discontinued operations, including, among others, (i) if the properties meet the held for sale criteria, and (ii) if the sale of these assets represents a strategic shift that has or will have a major effect on our operations and financial results. In our assessment, we considered, among other factors, that our total revenue from properties located in Asia was approximately 1.5% of our total consolidated revenues. At the time of evaluation, we also noted total assets related to our investment in Asia were approximately 2.5% of our total assets. Consequently, we concluded that the monetization of our real estate investments in Asia did not represent a strategic shift that would have a major effect in our operations and financial results and, therefore, did not meet the criteria for classification as discontinued operations. The following is a summary of net assets of our real estate investments in Asia that were classified as held for sale as of September 30, 2016 (in thousands): September 30, 2016 December 31, 2015 Total assets $ 69,512 $ 218,816 Total liabilities (23,790 ) (11,304 ) Total accumulated other comprehensive loss 40,870 (1) 41,118 Net assets classified as held for sale – Asia $ 86,592 $ 248,630 (1) Represents cumulative foreign currency translation losses related to our real estate investments located in Asia. The following is a summary of operating information of our real estate investments in Asia, including, (i) eight operating properties aggregating 1.2 million RSF and land parcels aggregating 168 acres that were classified as held for sale as of September 30, 2016 , and (ii) two land parcels and a development project in India that were sold subsequent to January 1, 2015, for the three and nine months ended September 30, 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total revenues $ 3,493 $ 1,688 $ 10,009 $ 5,073 Operating expenses (3,041 ) (2,596 ) (7,764 ) (5,780 ) 452 (908 ) 2,245 (707 ) General and administrative expenses (432 ) (872 ) (2,154 ) (3,684 ) Depreciation expense — (2,129 ) (3,009 ) (6,277 ) Impairment of real estate (7,326 ) — (190,424 ) (14,510 ) Net loss from assets classified as held for sale – Asia $ (7,306 ) $ (3,909 ) $ (193,342 ) $ (25,178 ) |
Subsequent events
Subsequent events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In October 2016, we acquired the Torrey Ridge Science Center, a 294,993 RSF, three-building collaborative life science campus located in the heart of our Torrey Pines submarket of San Diego, for a purchase price of $182.5 million . The campus is 87.1% occupied and we expect an initial stabilized cash yield of 6.8% at stabilization in the first half of 2018 upon completion of near-term renewals/re-leasing of acquired below-market leases and the conversion of 75,953 RSF existing shell and office space into office/laboratory space. In October 2016, we repurchased 1.5 million shares of our 7.00% Series D cumulative convertible preferred stock at an aggregate price of $52.8 million , or $36.07 per share. As of October 31, 2016 the par value of 7.00% Series D cumulative convertible preferred stock outstanding was $125.2 million . In October 2016, we established a new “at the market” common stock offering program, which allows us to sell up to an aggregate of $600.0 million of our common stock. Under this program, we sold an aggregate of 1.4 million shares of common stock for gross proceeds of $150.0 million , or $104.28 per share, and net proceeds of approximately $147.7 million . |
Condensed consolidating financi
Condensed consolidating financial information | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015 , the condensed consolidating statements of income and comprehensive income for the three and nine months ended September 30, 2016 and 2015 , and the condensed consolidating statements of cash flows for the nine months ended September 30, 2016 and 2015 , 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 September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Assets Investments in real estate $ — $ — $ 7,939,179 $ — $ 7,939,179 Investments in unconsolidated real estate JVs — — 133,580 — 133,580 Cash and cash equivalents 18,530 — 139,398 — 157,928 Restricted cash 107 — 16,299 — 16,406 Tenant receivables — — 9,635 — 9,635 Deferred rent — — 318,286 — 318,286 Deferred leasing costs — — 191,765 — 191,765 Investments — 4,487 316,502 — 320,989 Investments in and advances to affiliates 7,521,833 6,848,858 139,428 (14,510,119 ) — Other assets 42,811 — 163,322 — 206,133 Total assets $ 7,583,281 $ 6,853,345 $ 9,367,394 $ (14,510,119 ) $ 9,293,901 Liabilities, Noncontrolling Interests, and Equity Secured notes payable $ — $ — $ 789,450 $ — $ 789,450 Unsecured senior notes payable 2,377,482 — — — 2,377,482 Unsecured senior line of credit 416,000 — — — 416,000 Unsecured senior bank term loans 746,162 — — — 746,162 Accounts payable, accrued expenses, and tenant security deposits 67,049 — 538,132 — 605,181 Dividends payable 66,510 — 195 — 66,705 Total liabilities 3,673,203 — 1,327,777 — 5,000,980 Redeemable noncontrolling interests — — 9,012 — 9,012 Alexandria Real Estate Equities, Inc.’s stockholders’ equity 3,910,078 6,853,345 7,656,774 (14,510,119 ) 3,910,078 Noncontrolling interests — — 373,831 — 373,831 Total equity 3,910,078 6,853,345 8,030,605 (14,510,119 ) 4,283,909 Total liabilities, noncontrolling interests, and equity $ 7,583,281 $ 6,853,345 $ 9,367,394 $ (14,510,119 ) $ 9,293,901 Condensed Consolidating Balance Sheet as of December 31, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Assets Investments in real estate $ — $ — $ 7,629,922 $ — $ 7,629,922 Investments in unconsolidated real estate JVs — — 127,212 — 127,212 Cash and cash equivalents 31,982 — 93,116 — 125,098 Restricted cash 91 — 28,781 — 28,872 Tenant receivables — — 10,485 — 10,485 Deferred rent — — 280,570 — 280,570 Deferred leasing costs — — 192,081 — 192,081 Investments — 4,702 348,763 — 353,465 Investments in and advances to affiliates 7,194,092 6,490,009 132,121 (13,816,222 ) — Other assets 36,808 — 96,504 — 133,312 Total assets $ 7,262,973 $ 6,494,711 $ 8,939,555 $ (13,816,222 ) $ 8,881,017 Liabilities, Noncontrolling Interests, and Equity Secured notes payable $ — $ — $ 809,818 $ — $ 809,818 Unsecured senior notes payable 2,030,631 — — — 2,030,631 Unsecured senior line of credit 151,000 — — — 151,000 Unsecured senior bank term loans 944,243 — — — 944,243 Accounts payable, accrued expenses, and tenant security deposits 100,294 — 489,062 — 589,356 Dividends payable 61,718 — 287 — 62,005 Total liabilities 3,287,886 — 1,299,167 — 4,587,053 Redeemable noncontrolling interests — — 14,218 — 14,218 Alexandria Real Estate Equities, Inc.’s stockholders’ equity 3,975,087 6,494,711 7,321,511 (13,816,222 ) 3,975,087 Noncontrolling interests — — 304,659 — 304,659 Total equity 3,975,087 6,494,711 7,626,170 (13,816,222 ) 4,279,746 Total liabilities, noncontrolling interests, and equity $ 7,262,973 $ 6,494,711 $ 8,939,555 $ (13,816,222 ) $ 8,881,017 Condensed Consolidating Statement of Income for the Three Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 166,591 $ — $ 166,591 Tenant recoveries — — 58,681 — 58,681 Other income 1,077 91 7,852 (3,913 ) 5,107 Total revenues 1,077 91 233,124 (3,913 ) 230,379 Expenses: Rental operations — — 72,002 — 72,002 General and administrative 15,568 — 4,199 (3,913 ) 15,854 Interest 21,318 — 4,532 — 25,850 Depreciation and amortization 1,722 — 75,411 — 77,133 Impairment of real estate — — 8,114 — 8,114 Loss on early extinguishment of debt 3,230 — — — 3,230 Total expenses 41,838 — 164,258 (3,913 ) 202,183 Equity in earnings of unconsolidated real estate JVs — — 273 — 273 Equity in earnings of affiliates 65,236 55,532 1,100 (121,868 ) — Income from continuing operations 24,475 55,623 70,239 (121,868 ) 28,469 Gain on sales of real estate – land parcels — — 90 — 90 Net income 24,475 55,623 70,329 (121,868 ) 28,559 Net income attributable to noncontrolling interests — — (4,084 ) — (4,084 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders 24,475 55,623 66,245 (121,868 ) 24,475 Dividends on preferred stock (5,007 ) — — — (5,007 ) Preferred stock redemption charge (13,095 ) — — — (13,095 ) Net income attributable to unvested restricted stock awards (921 ) — — — (921 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 5,452 $ 55,623 $ 66,245 $ (121,868 ) $ 5,452 Condensed Consolidating Statement of Income for the Three Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 155,311 $ — $ 155,311 Tenant recoveries — — 56,119 — 56,119 Other income 3,355 (87 ) 8,025 (4,113 ) 7,180 Total revenues 3,355 (87 ) 219,455 (4,113 ) 218,610 Expenses: Rental operations — — 68,846 — 68,846 General and administrative 13,511 — 5,745 (4,113 ) 15,143 Interest 20,470 — 7,209 — 27,679 Depreciation and amortization 1,799 — 66,154 — 67,953 Total expenses 35,780 — 147,954 (4,113 ) 179,621 Equity in earnings of unconsolidated real estate JVs — — 710 — 710 Equity in earnings of affiliates 71,954 63,964 1,259 (137,177 ) — Net income 39,529 63,877 73,470 (137,177 ) 39,699 Net income attributable to noncontrolling interests — — (170 ) — (170 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders 39,529 63,877 73,300 (137,177 ) 39,529 Dividends on preferred stock (6,247 ) — — — (6,247 ) Net income attributable to unvested restricted stock awards (623 ) — — — (623 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 32,659 $ 63,877 $ 73,300 $ (137,177 ) $ 32,659 Condensed Consolidating Statement of Income for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 486,505 $ — $ 486,505 Tenant recoveries — — 165,385 — 165,385 Other income 7,086 115 24,091 (10,638 ) 20,654 Total revenues 7,086 115 675,981 (10,638 ) 672,544 Expenses: Rental operations — — 205,164 — 205,164 General and administrative 45,224 — 11,840 (10,638 ) 46,426 Interest 60,729 — 15,001 — 75,730 Depreciation and amortization 4,997 — 213,171 — 218,168 Impairment of real estate — — 193,237 — 193,237 Loss on early extinguishment of debt 3,230 — — — 3,230 Total expenses 114,180 — 638,413 (10,638 ) 741,955 Equity in losses of unconsolidated real estate JVs — — (270 ) — (270 ) Equity in earnings (losses) of affiliates 25,889 (6,282 ) (98 ) (19,509 ) — (Loss) income from continuing operations (81,205 ) (6,167 ) 37,200 (19,509 ) (69,681 ) Gain on sales of real estate – land parcels — — 90 — 90 Net (loss) income (81,205 ) (6,167 ) 37,290 (19,509 ) (69,591 ) Net income attributable to noncontrolling interests — — (11,614 ) — (11,614 ) Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders (81,205 ) (6,167 ) 25,676 (19,509 ) (81,205 ) Dividends on preferred stock (16,388 ) — — — (16,388 ) Preferred stock redemption charge (25,614 ) — — — (25,614 ) Net income attributable to unvested restricted stock awards (2,807 ) — — — (2,807 ) Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ (126,014 ) $ (6,167 ) $ 25,676 $ (19,509 ) $ (126,014 ) Condensed Consolidating Statement of Income for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 450,724 $ — $ 450,724 Tenant recoveries — — 154,107 — 154,107 Other income 9,890 (128 ) 17,014 (12,088 ) 14,688 Total revenues 9,890 (128 ) 621,845 (12,088 ) 619,519 Expenses: Rental operations — — 192,319 — 192,319 General and administrative 38,960 — 17,647 (12,088 ) 44,519 Interest 57,494 — 20,089 — 77,583 Depreciation and amortization 4,515 — 184,529 — 189,044 Impairment of real estate — — 14,510 — 14,510 Loss on early extinguishment of debt 189 — — — 189 Total expenses 101,158 — 429,094 (12,088 ) 518,164 Equity in earnings of unconsolidated real estate JVs — — 1,825 — 1,825 Equity in earnings of affiliates 193,480 174,800 3,446 (371,726 ) — Income from continuing operations 102,212 174,672 198,022 (371,726 ) 103,180 Loss from discontinued operations — — (43 ) — (43 ) Net income 102,212 174,672 197,979 (371,726 ) 103,137 Net income attributable to noncontrolling interests — — (925 ) — (925 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders 102,212 174,672 197,054 (371,726 ) 102,212 Dividends on preferred stock (18,740 ) — — — (18,740 ) Net income attributable to unvested restricted stock awards (1,736 ) — — — (1,736 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 81,736 $ 174,672 $ 197,054 $ (371,726 ) $ 81,736 Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net income $ 24,475 $ 55,623 $ 70,329 $ (121,868 ) $ 28,559 Other comprehensive income (loss): Unrealized losses on available-for-sale equity securities: Unrealized holding gains (losses) arising during the period — 58 (38,679 ) — (38,621 ) Reclassification adjustment for gains included in net income — (159 ) (8,381 ) — (8,540 ) Unrealized losses on available-for-sale equity securities, net — (101 ) (47,060 ) — (47,161 ) Unrealized gains (losses) on interest rate hedge agreements: Unrealized interest rate hedge gains arising during the period 2,979 — 3 — 2,982 Reclassification adjustment for amortization of interest expense (income) included in net income 1,714 — (12 ) — 1,702 Unrealized gains (losses) on interest rate hedge agreements, net 4,693 — (9 ) — 4,684 Unrealized gains on foreign currency translation: Unrealized foreign currency translation losses during the period — — (1,322 ) — (1,322 ) Reclassification adjustment for losses included in net income — — 3,779 — 3,779 Unrealized gains on foreign currency translation, net — — 2,457 — 2,457 Total other comprehensive income (loss) 4,693 (101 ) (44,612 ) — (40,020 ) Comprehensive income (loss) 29,168 55,522 25,717 (121,868 ) (11,461 ) Less: comprehensive income attributable to noncontrolling interests — — (4,081 ) — (4,081 ) Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 29,168 $ 55,522 $ 21,636 $ (121,868 ) $ (15,542 ) Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net income $ 39,529 $ 63,877 $ 73,470 $ (137,177 ) $ 39,699 Other comprehensive loss: Unrealized losses on available-for-sale equity securities: Unrealized holding losses arising during the period — (41 ) (29,791 ) — (29,832 ) Reclassification adjustment for gains included in net income — (117 ) (4,851 ) — (4,968 ) Unrealized losses on available-for-sale equity securities, net — (158 ) (34,642 ) — (34,800 ) Unrealized losses on interest rate hedge agreements: Unrealized interest rate hedge losses arising during the period (5,474 ) — — — (5,474 ) Reclassification adjustment for amortization of interest expense included in net income 727 — — — 727 Unrealized losses on interest rate hedge agreements, net (4,747 ) — — — (4,747 ) Unrealized losses on foreign currency translation: Unrealized foreign currency translation losses during the period — — (9,294 ) — (9,294 ) Unrealized losses on foreign currency translation, net — — (9,294 ) — (9,294 ) Total other comprehensive loss (4,747 ) (158 ) (43,936 ) — (48,841 ) Comprehensive income 34,782 63,719 29,534 (137,177 ) (9,142 ) Less: comprehensive income attributable to noncontrolling interests — — (71 ) — (71 ) Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 34,782 $ 63,719 $ 29,463 $ (137,177 ) $ (9,213 ) Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (81,205 ) $ (6,167 ) $ 37,290 $ (19,509 ) $ (69,591 ) Other comprehensive loss: Unrealized losses on available-for-sale equity securities: Unrealized holding gains (losses) arising during the period — 136 (70,191 ) — (70,055 ) Reclassification adjustment for gains included in net income — (148 ) (18,479 ) — (18,627 ) Unrealized losses on available-for-sale equity securities, net — (12 ) (88,670 ) — (88,682 ) Unrealized losses on interest rate hedge agreements: Unrealized interest rate hedge (losses) gains arising during the period (7,658 ) — 3 — (7,655 ) Reclassification adjustment for amortization of interest expense (income) included in net income 3,737 — (12 ) — 3,725 Unrealized losses on interest rate hedge agreements, net (3,921 ) — (9 ) — (3,930 ) Unrealized gains on foreign currency translation: Unrealized foreign currency translation gains arising during the period — — 842 — 842 Reclassification adjustment for losses included in net income — — 10,807 — 10,807 Unrealized gains on foreign currency translation, net — — 11,649 — 11,649 Total other comprehensive loss (3,921 ) (12 ) (77,030 ) — (80,963 ) Comprehensive loss (85,126 ) (6,179 ) (39,740 ) (19,509 ) (150,554 ) Less: comprehensive income attributable to noncontrolling interests — — (11,587 ) — (11,587 ) Comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ (85,126 ) $ (6,179 ) $ (51,327 ) $ (19,509 ) $ (162,141 ) Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net income $ 102,212 $ 174,672 $ 197,979 $ (371,726 ) $ 103,137 Other comprehensive (loss) income: Unrealized (losses) gains on available-for-sale equity securities: Unrealized holding (losses) gains arising during the period — (19 ) 54,023 — 54,004 Reclassification adjustment for gains included in net income — (76 ) (2,427 ) — (2,503 ) Unrealized (losses) gains on available-for-sale equity securities, net — (95 ) 51,596 — 51,501 Unrealized losses on interest rate hedge agreements: Unrealized interest rate hedge losses arising during the period (9,712 ) — — — (9,712 ) Reclassification adjustment for amortization of interest expense included in net income 1,942 — — — 1,942 Unrealized losses on interest rate hedge agreements, net (7,770 ) — — — (7,770 ) Unrealized losses on foreign currency translation: Unrealized foreign currency translation losses during the period — — (17,072 ) — (17,072 ) Reclassification adjustment for losses included in net income — — 9,236 — 9,236 Unrealized losses on foreign currency translation, net — — (7,836 ) — (7,836 ) Total other comprehensive (loss) income (7,770 ) (95 ) 43,760 — 35,895 Comprehensive income 94,442 174,577 241,739 (371,726 ) 139,032 Less: comprehensive income attributable to noncontrolling interests — — (954 ) — (954 ) Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 94,442 $ 174,577 $ 240,785 $ (371,726 ) $ 138,078 Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non-Guarantor Subsidiaries Eliminations Consolidated Operating Activities Net (loss) income $ (81,205 ) $ (6,167 ) $ 37,290 $ (19,509 ) $ (69,591 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 4,997 — 213,171 — 218,168 Loss on early extinguishment of debt 3,230 — — — 3,230 Gain on sales of real estate – land parcels — — (90 ) — (90 ) Impairment of real estate — — 193,237 — 193,237 Equity in losses of unconsolidated real estate JVs — — 270 — 270 Distributions of earnings from unconsolidated real estate JVs — — 286 — 286 Amortization of loan fees 5,826 — 2,966 — 8,792 Amortization of debt discounts (premiums) 353 — (470 ) — (117 ) Amortization of acquired below-market leases — — (2,905 ) — (2,905 ) Deferred rent — — (30,679 ) — (30,679 ) Stock compensation expense 19,007 — — — 19,007 Equity in (earnings) losses of affiliates (25,889 ) 6,282 98 19,509 — Investment gains — (566 ) (28,155 ) — (28,721 ) Investment losses — 188 10,482 — 10,670 Changes in operating assets and liabilities: Restricted cash (16 ) — (262 ) — (278 ) Tenant receivables — — 843 — 843 Deferred leasing costs — — (21,621 ) — (21,621 ) Other assets (8,332 ) — (6,481 ) — (14,813 ) Accounts payable, accrued expenses, and tenant security deposits (35,351 ) (592 ) 42,106 — 6,163 Net cash (used in) provided by operating activities (117,380 ) (855 ) 410,086 — 291,851 Investing Activities Proceeds from sales of real estate — — 27,332 — 27,332 Additions to real estate — — (638,568 ) — (638,568 ) Purchase of real estate — — (18,108 ) — (18,108 ) Deposits for investing activities — — (54,998 ) — (54,998 ) Investments in unconsolidated real estate JVs — — (6,924 ) — (6,924 ) Investments in subsidiaries (301,852 ) (365,132 ) (7,405 ) 674,389 — Additions to investments — — (68,384 ) — (68,384 ) Sales of investments — 1,174 34,121 — 35,295 Repayment of notes receivable — — 9,054 — 9,054 Net cash used in investing activities $ (301,852 ) $ (363,958 ) $ (723,880 ) $ 674,389 $ (715,301 ) Condensed Consolidating Statement of Cash Flows (continued) for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Alexandria Real Combined Eliminations Consolidated Financing Activities Borrowings from secured notes payable $ — $ — $ 215,330 $ — $ 215,330 Repayments of borrowings from secured notes payable — — (234,096 ) — (234,096 ) Proceeds from issuance of unsecured senior notes payable 348,604 — — — 348,604 Borrowings from unsecured senior line of credit 2,349,000 — — — 2,349,000 Repayments of borrowings from unsecured senior line of credit (2,084,000 ) — — — (2,084,000 ) Repayments of borrowings from unsecured bank term loans (200,000 ) — — — (200,000 ) Transfer to/from parent company (69,139 ) 364,813 378,715 (674,389 ) — Payment of loan fees (12,401 ) — (4,098 ) — (16,499 ) Change in restricted cash related to financing activities — — 7,742 — 7,742 Repurchase of 7.00% Series D cumulative convertible preferred stock (98,633 ) — — — (98,633 ) Proceeds from the issuance of common stock 367,802 — — — 367,802 Dividends on common stock (177,966 ) — — — (177,966 ) Dividends on preferred stock (17,487 ) — — — (17,487 ) Financing costs paid for sale of noncontrolling interests — — (8,093 ) — (8,093 ) Contributions from and sale of noncontrolling interests — — 68,621 — 68,621 Distributions to and purchase of noncontrolling interests — — (62,605 ) — (62,605 ) Net cash provided by financing activities 405,780 364,813 361,516 (674,389 ) 457,720 Effect of foreign exchange rate changes on cash and cash equivalents — — (1,440 ) — (1,440 ) Net (decrease) increase in cash and cash equivalents (13,452 ) — 46,282 — 32,830 Cash and cash equivalents as of the beginning of period 31,982 — 93,116 — 125,098 Cash and cash equivalents as of the end of period $ 18,530 $ — $ 139,398 $ — $ 157,928 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest, net of interest capitalized $ 58,062 $ — $ 758 $ — $ 58,820 Non-Cash Investing Activities: Change in accrued construction $ — $ — $ 23,023 $ — $ 23,023 Non-Cash Financing Activities: Redemption of redeemable noncontrolling interests $ — $ — $ (5,000 ) $ — $ (5,000 ) Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non-Guarantor Subsidiaries Eliminations Consolidated Operating Activities Net income $ 102,212 $ 174,672 $ 197,979 $ (371,726 ) $ 103,137 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 4,515 — 184,529 — 189,044 Loss on early extinguishment of debt 189 — — — 189 Impairment of real estate — — 14,510 — 14,510 Equity in earnings of unconsolidated real estate JVs — — (1,825 ) — (1,825 ) Distributions of earnings from unconsolidated real estate JVs — — 740 — 740 Amortization of loan fees 5,717 — 2,631 — 8,348 Amortization of debt discounts (premiums) 243 — (525 ) — (282 ) Amortization of acquired below-market leases — — (5,121 ) — (5,121 ) Deferred rent — — (34,421 ) — (34,421 ) Stock compensation expense 12,922 — — — 12,922 Equity in earnings of affiliates (193,480 ) (174,800 ) (3,446 ) 371,726 — Investment gains — — (22,368 ) — (22,368 ) Investment losses — 269 10,888 — 11,157 Changes in operating assets and liabilities: Restricted cash (28 ) — 52 — 24 Tenant receivables — — 380 — 380 Deferred leasing costs — — (47,725 ) — (47,725 ) Other assets (9,228 ) — (4,493 ) — (13,721 ) Accounts payable, accrued expenses, and tenant security deposits 31,895 — (472 ) — 31,423 Net cash (used in) provided by operating activities (45,043 ) 141 291,313 — 246,411 Investing Activities Proceeds from sales of real estate — — 92,455 — 92,455 Additions to real estate — — (362,215 ) — (362,215 ) Purchase of real estate — — (248,933 ) — (248,933 ) Deposit for investing activities — — (6,707 ) — (6,707 ) Investments in unconsolidated real estate JVs — — (7,979 ) — (7,979 ) Investments in subsidiaries (302,455 ) (215,128 ) (4,493 ) 522,076 — Additions to investments — — (67,965 ) — (67,965 ) Sales of investments — 6 39,584 — 39,590 Proceeds from repayment of notes receivable — — 4,264 — 4,264 Net cash used in investing activities $ (302,455 ) $ (215,122 ) $ (561,989 ) $ 522,076 $ (557,490 ) Condensed Consolidating Statement of Cash Flows (continued) for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non-Guarantor Subsidiaries Eliminations Consolidated Financing Activities Borrowings from secured notes payable $ — $ — $ 47,375 $ — $ 47,375 Repayments of borrowings from secured notes payable — — (12,217 ) — (12,217 ) Principal borrowings from unsecured senior line of credit 1,432,000 — — — 1,432,000 Repayments of borrowings from unsecured senior line of credit (893,000 ) — — — (893,000 ) Repayment of borrowings from unsecured senior bank term loan (25,000 ) — — — (25,000 ) Transfer to/from parent company 1,853 214,926 305,297 (522,076 ) — Change in restricted cash related to financing activities — — (4,737 ) — (4,737 ) Proceeds from the issuance of common stock 5,052 — — — 5,052 Payment of loan fees (2,140 ) — (2,042 ) — (4,182 ) Dividends on common stock (162,280 ) — — — (162,280 ) Dividends on preferred stock (18,740 ) — — — (18,740 ) Contributions by noncontrolling interests — — 340 — 340 Distributions to and purchase of noncontrolling interests — — (62,973 ) — (62,973 ) Net cash provided by financing activities 337,745 214,926 271,043 (522,076 ) 301,638 Effect of foreign exchange rate changes on cash and cash equivalents — — (187 ) — (187 ) Net (decrease) increase in cash and cash equivalents (9,753 ) (55 ) 180 — (9,628 ) 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 $ 42,738 $ 8 $ 33,637 $ — $ 76,383 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest, net of interest capitalized $ 47,193 $ — $ 17,004 $ — $ 64,197 Non-Cash Investing Activities: Change in accrued construction $ — $ — $ (7,305 ) $ — $ (7,305 ) 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 $ (51,887 ) $ — $ — $ — $ (51,887 ) |
Basis of presentation and sum23
Basis of presentation and summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and consolidation | 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. Certain prior-period amounts have been reclassified to conform to current-period presentation. Consolidation On an ongoing basis, as circumstances indicate the need for reconsideration, we evaluate each legal entity that is not wholly owned by us, under the consolidation guidance, first under the variable interest model, then under the voting model. Our evaluation considers all of our variable interests, including equity ownership, as well as fees paid to us for our involvement in the management of each partially owned entity. The variable interest model applies to entities that meet both of the following criteria: • A legal structure has been established to conduct business activities and to hold assets; such entity can be in the form of a partnership, limited liability company, or corporation, among others; and • The entity established has variable interests – i.e., it has variable interests that are contractual, such as equity ownership or other financial interests that change with changes in the fair value of the entity’s net assets. If an entity meets both criteria above, we then evaluate such entity under the variable interest model. If an entity does not meet these criteria, we then evaluate such entity under the voting model or apply other GAAP, such as the cost or equity method of accounting. Variable interest model A legal entity is determined to be a VIE if it has any of the following three characteristics: 1) The entity does not have sufficient equity to finance its activities without additional subordinated financial support; 2) The entity is established with non-substantive voting rights (i.e., where the entity deprives the majority economic interest holder(s) of voting rights); or 3) The equity holders, as a group, lack the characteristics of a controlling financial interest. Equity holders meet this criterion if they lack any of the following: • The power, through voting rights or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance, as evidenced by: • Substantive participating rights in day-to-day management of the entity’s activities; or • Substantive kick-out rights over the party responsible for significant decisions • The obligation to absorb the entity’s expected losses; and • The right to receive the entity’s expected residual returns. Once we consider the sufficiency of equity and voting rights of each legal entity, we then evaluate the characteristics of the equity holders’ interests, as a group, to see if they qualify as controlling financial interests. Our real estate joint ventures consist of limited partnerships or limited liability companies. For entities structured as limited partnerships or limited liability companies, our evaluation of whether the equity holders (equity partners other than us in each of our real estate joint ventures) lack the characteristics of a controlling financial interest includes the determination of whether the limited partners or non-managing members (the noncontrolling equity holders) lack both substantive participating rights and substantive kick-out rights, defined as follows: • Participating rights – provide the noncontrolling equity holders the ability to direct significant financial and operating decisions made in the ordinary course of business that most significantly impact the entity’s economic performance. • Kick-out rights – allow the noncontrolling equity holders to remove the general partner or managing member without cause. If we conclude that any of the three characteristics of a VIE are met, including whether equity holders lack the characteristics of a controlling financial interest because they lack both substantive participating rights and substantive kick-out rights, we also then conclude that the entity is a VIE and evaluate it for consolidation under the variable interest model. If an entity is determined to be a VIE, we evaluate whether we are the primary beneficiary. The primary beneficiary analysis is a qualitative analysis based on power and benefits. We consolidate a VIE if we have both power and benefits – that is, (i) we have the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance (power), and (ii) we have the obligation to absorb losses of the VIE that could potentially be significant to the VIE, or the right to receive benefits from the VIE that potentially could be significant to the VIE (benefits). We consolidate VIEs whenever we determine that we are the primary beneficiary. Refer to Note 3 – “Investments in Real Estate” to these unaudited consolidated financial statements for information on specific real estate joint ventures that qualify as VIEs. If we have a variable interest in a VIE but we are not the primary beneficiary, we account for our investment using the equity method of accounting. Voting model If a legal entity fails to meet any of the three characteristics of a VIE (insufficiency of equity, non-substantive voting rights, or lack of controlling financial interest), we then evaluate such entity under the voting model. Under the voting model, we consolidate the entity if we determine that we, directly or indirectly, have greater than 50% of the voting shares, and we determine that other equity holders do not have substantive participating rights. Refer to Note 4 – “Investments in Unconsolidated Real Estate Joint Ventures” to these unaudited consolidated financial statements for further information on our unconsolidated real estate joint ventures that qualify for evaluation under the voting model. |
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 and properties classified as held for sale | Investments in real estate and properties classified as held for sale We recognize real estate acquired (including the intangible value of acquired above- or below-market leases, acquired in-place leases, 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 under the 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 up to 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 revenue. The values of acquired above- and below-market ground leases are amortized over the terms of the related ground leases and recognized as either an increase (for below-market ground leases) or a decrease (for above-market ground leases) to rental operating expense. 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 capitalize project costs, including predevelopment costs, interest, property taxes, insurance, and other costs directly related and essential to the 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. 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 geographic area, (iii) a major equity method investment, or (iv) other major parts of an entity, then the operations of the property, 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 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, if necessary, a probability-weighted approach if multiple outcomes are under consideration. 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 carrying amount of a long-lived asset may not be recoverable. The carrying amount of a long-lived asset to be held and used is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Impairment indicators or triggering events for long-lived assets to be held and used, including our rental properties, CIP, land held for development, and intangibles, 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 carrying amount of the long-lived asset classified as held for sale exceeds its fair value less cost to sell. Because of these two different models, it is possible for a long-lived asset previously classified as held and used to require the recognition of an impairment charge upon classification as held for sale. |
Investments | Investments We hold equity investments in certain publicly traded companies and investments in certain privately held entities and limited partnerships primarily involved in the science and technology industries. All of our equity 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 other 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 require accounting 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 carrying amount of the investment to recognize our share of the earnings or losses of the investee subsequent to the date of our investment. Additionally, we limit our ownership percentage in the voting stock of each individual entity to less than 10% . As of September 30, 2016 , and December 31, 2015 , our ownership percentage in the voting stock of each individual entity was less than 10% . We monitor each of our 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 | Recognition of rental revenue and tenant recoveries Rental revenue from leases is recognized on a straight-line basis over the respective lease terms. We classify amounts currently recognized as revenue, and expected to be received in later years, as deferred rent in the accompanying consolidated balance sheets. Amounts received currently but recognized as revenue 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 revenue at the date the property is ready for its intended use and the 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 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 tenants to make payments required under the terms of the lease and for tenant recoveries due. If a 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 September 30, 2016 , and December 31, 2015 , we had no allowance for uncollectible tenant receivables and deferred rent. |
Monitoring tenant credit quality | Monitoring tenant credit quality During the term of each lease, we monitor the credit quality of our tenants by (i) monitoring the credit rating of tenants that are rated by a nationally recognized credit rating agency, (ii) reviewing financial statements of the 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 tenants and their respective businesses, and (iv) monitoring the timeliness of lease payments. We have a research team consisting 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 tenants and any material changes in their credit quality. |
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 2010-2015 calendar years. |
Recent accounting pronouncements | Recent accounting pronouncements On January 1, 2016, we adopted an ASU that requires debt issuance costs, excluding debt issuance costs associated with a line of credit, to be classified in our consolidated balance sheet as a direct deduction from the face amount of the related debt. As a result of adopting the ASU, unamortized deferred financing costs aggregating $30.1 million as of January 1, 2016, were classified with the corresponding debt instrument appearing on our consolidated balance sheet, and deferred financing costs related to our unsecured senior line of credit, aggregating $11.9 million as of January 1, 2016, were classified in other assets. The ASU was applied retrospectively to all prior periods presented in the financial statements. The adoption of this ASU had no impact on our consolidated statements of income. In January 2016, the FASB issued an ASU that amended the accounting for equity investments and the presentation and disclosure requirements for financial instruments. The ASU requires equity investments that have a readily determinable fair value (except those accounted for under the equity method of accounting or that result in consolidation) to be measured at fair value, with the changes in fair value recognized in earnings. Available-for-sale equity securities that under current GAAP require the recognition of unrealized gains and losses in other comprehensive income will no longer be permitted. An election will be available to measure equity investments without a readily determinable fair value at cost less impairments, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. Changes in the carrying value from this measurement will also be reported in current earnings. A cumulative-effect adjustment will be recorded to the beginning balance of retained earnings in the reporting period in which the guidance is adopted. The ASU is effective for fiscal years beginning after December 15, 2017. As of September 30, 2016 , we had $28.9 million of net unrealized gains related to our available-for-sale equity securities in publicly traded companies included in accumulated other comprehensive income in our consolidated balance sheets. In February 2016, the FASB issued an ASU that sets out the principles for the recognition, measurement, presentation, and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The ASU requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The ASU is expected to impact our consolidated financial statements as we have certain operating ground lease arrangements for which we are the lessee. As of September 30, 2016 , the remaining contractual payments under our ground lease agreements aggregated $607.3 million . Additionally, the new ASU will require that lessees and lessors capitalize, as initial direct costs, only those costs that are incurred due to the execution of a lease. Under this ASU, allocated payroll costs and other costs that are incurred regardless of whether the lease is obtained will no longer be capitalized as initial direct costs and instead will be expensed as incurred. Lessors will continue to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. The ASU is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The standard permits the use of either the retrospective or modified retrospective transition method. We are currently assessing the potential impact that the adoption of the ASU will have on our consolidated financial statements. In March 2016, the FASB issued an ASU that further clarifies an ASU issued in 2014 on recognition of revenue arising from contracts with customers. The core principle underlying this ASU is that entities will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in such exchange. Leases are specifically excluded from this ASU and will be governed by the applicable lease codification; however, this update may have implications in certain variable payment terms included in lease agreements and in sale and leaseback transactions. The ASU is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017. We are currently assessing the potential impact the adoption of this ASU will have on our consolidated financial statements. In June 2016, the FASB issued an ASU that changes the impairment model for most financial instruments by requiring companies to recognize an allowance for expected losses, rather than incurred losses as required currently by the other-than-temporary impairment model. The ASU will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases, and off-balance-sheet credit exposures (e.g., loan commitments). The ASU is effective for reporting periods beginning after December 15, 2019, with early adoption permitted, and will be applied as a cumulative adjustment to retained earnings as of the effective date. We are currently assessing the potential impact the adoption of this ASU will have on our consolidated financial statements. In August 2016, the FASB issued an ASU that provides guidance on classification of cash distributions received from equity method investments, including unconsolidated joint ventures. The ASU provides two approaches to determine the classification of cash distributions received: i) the “cumulative earnings” approach, under which distributions up to the amount of cumulative equity in earnings recognized will be classified as cash inflows from operating activities, and those in excess of that amount will be classified as cash inflows from investing activities, and ii) the “nature of the distribution” approach, under which distributions will be classified based on the nature of the underlying activity that generated cash distributions. Companies will elect either the “cumulative earnings” or the “nature of the distribution” approach. Entities that elect the “nature of the distribution” approach but lack the information to apply it will apply the cumulative earnings approach as an accounting change on a retrospective basis. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively (exceptions apply). During the nine months ended September 30, 2016 , operating distributions received from our equity method investees aggregated approximately $286 thousand and were classified as cash inflows from operating activities on our consolidated statements of cash flows. We expect to continue to utilize the “nature of the distribution” approach to classify distributions from our equity method investees after the adoption of this ASU. |
Background (Tables)
Background (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Square Feet by Property | Our asset base in North America (including consolidated and unconsolidated real estate joint ventures) consisted of the following, as of September 30, 2016 : Square Feet Consolidated Unconsolidated Total Operating properties 16,052,751 313,407 16,366,158 Projects under construction or pre-construction: Projects to be delivered during the three months ending December 31, 2016 366,081 100,392 466,473 Projects to be delivered in 2017 and 2018 1,564,968 422,980 1,987,948 Development and redevelopment projects 1,931,049 523,372 2,454,421 Operating properties and development and redevelopment projects 17,983,800 836,779 18,820,579 Future value-creation projects 5,678,707 — 5,678,707 Asset base in North America 23,662,507 836,779 24,499,286 |
Basis of presentation and sum25
Basis of presentation and summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interest and Other Income | Other income The following is a summary of other income in the accompanying consolidated statements of income for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Management fee income $ 46 $ 530 $ 380 $ 1,341 Interest and other income 795 1,272 2,223 2,136 Investment income 4,266 5,378 18,051 11,211 Total other income $ 5,107 $ 7,180 $ 20,654 $ 14,688 |
Investments in real estate (Tab
Investments in real estate (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Investments in real estate | Our consolidated investments in real estate consisted of the following as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 North America: Land (related to rental properties) $ 763,794 $ 677,649 Buildings and building improvements 7,109,271 6,644,634 Other improvements 371,888 260,605 Rental properties 8,244,953 7,582,888 Development and redevelopment projects (under construction or pre-construction) 875,717 917,706 Future value-creation projects 238,728 206,939 Value-creation pipeline 1,114,445 1,124,645 Gross investments in real estate – North America 9,359,398 8,707,533 Less: accumulated depreciation (1,473,064 ) (1,299,548 ) Net investments in real estate – North America 7,886,334 7,407,985 Net investments in real estate – Asia 52,845 (1) 221,937 Investments in real estate $ 7,939,179 $ 7,629,922 (1) Refer to “Assets located in Asia” in Note 14 – “Assets Classified as Held for Sale” to these unaudited consolidated financial statements for further information. |
Schedule of consolidated joint ventures | The following table aggregates the balance sheet information of our consolidated VIEs as of September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Investments in real estate $ 802,266 $ 608,474 Cash and cash equivalents 37,566 2,060 Other assets 40,863 37,633 Total assets $ 880,695 $ 648,167 Secured notes payable $ — $ — Other liabilities 75,865 38,666 Total liabilities 75,865 38,666 Alexandria Real Estate Equities, Inc.’s share of equity 432,735 307,220 Noncontrolling interests’ share of equity 372,095 302,281 Total liabilities and equity $ 880,695 $ 648,167 |
Investment in unconsolidated 27
Investment in unconsolidated real estate joint ventures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Secured Construction Loan | 360 Longwood Avenue We have a 27.5% effective interest in this real estate joint venture that is currently developing a building aggregating 413,799 RSF in our Longwood Medical Area submarket of Greater Boston. The cost at completion for this real estate project is expected to be approximately $350 million . As of September 30, 2016 , the joint venture had 313,407 RSF, or 76% of the project, leased and in service. Our equity investment in this real estate joint venture was $50.2 million as of September 30, 2016 . The real estate joint venture has a non-recourse, secured construction loan (“Longwood Construction Loan”) that includes the following key terms (dollars in thousands): Tranche Maturity Date Stated Rate Outstanding Balance Remaining Commitments Total Fixed rate April 1, 2017 (1 ) 5.25 % $ 173,226 $ 2,015 $ 175,241 Floating rate (2) April 1, 2017 (1 ) L+3.75 % 8,081 29,878 37,959 181,307 $ 31,893 $ 213,200 Unamortized deferred financing costs 235 $ 181,072 (1) We have two , one -year options to extend the stated maturity date to April 1, 2019, subject to certain conditions. (2) Borrowings under the floating rate tranche have an interest rate floor equal to 5.25% , and are subject to an interest rate cap on LIBOR of 3.50% . The following table summarizes our secured construction loans as of September 30, 2016 (dollars in thousands): Property/Market Stated Rate Maturity Date Outstanding Balance Remaining Commitments Total Aggregate Commitments 75/125 Binney Street/Greater Boston L+1.35 % 8/23/17 $ 210,464 $ 39,936 $ 250,400 50/60 Binney Street/Greater Boston L+1.50 % 1/28/19 (1) 213,969 136,031 350,000 100 Binney Street/Greater Boston L+2.00 % (2) 4/20/19 (3) 64,256 240,025 304,281 $ 488,689 $ 415,992 $ 904,681 (1) We have two , one -year options to extend the stated maturity date to January 28, 2021, subject to certain conditions. (2) Refer to Note 9 – “Interest Rate Hedge Agreements” to these unaudited consolidated financial statements for further information. (3) We have two , one -year options to extend the stated maturity date to April 20, 2021, subject to certain conditions. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments [Abstract] | |
Summary of investments | The following table summarizes our investments as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Available-for-sale equity securities, cost basis $ 40,090 $ 20,022 Unrealized gains 33,182 118,392 Unrealized losses (4,265 ) (793 ) Available-for-sale equity securities, at fair value 69,007 137,621 Investments accounted for under cost method 251,982 215,844 Total investments $ 320,989 $ 353,465 |
Schedule of net investment income | We periodically assess our investments in privately held companies accounted for under the cost method for other-than-temporary impairment. 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. During the three months ended September 30, 2016 , we determined there was an other-than-temporary impairment on certain of our cost method investments and wrote the investment down to fair value. The impairment charge is included in the investment losses for the three and nine months ended September 30, 2016 , presented in the table below, which outlines the components of our investment income classified within other income in the accompanying consolidated statements of income (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Investment gains $ 8,115 $ 8,658 $ 28,721 $ 22,368 Investment losses (3,849 ) (3,280 ) (10,670 ) (11,157 ) Investment income $ 4,266 $ 5,378 $ 18,051 $ 11,211 |
Other assets (Tables)
Other assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | The following table summarizes the components of other assets as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Acquired below-market ground leases $ 12,970 $ 13,142 Acquired in-place leases 24,616 27,997 Deferred compensation plan 10,667 8,489 Deferred financing costs – $1.65 billion unsecured senior line of credit 15,168 11,909 Deposits 75,474 (1) 3,713 Furniture, fixtures, and equipment, net 13,379 13,682 Interest rate hedge assets 180 596 Notes receivable 6,876 16,630 Prepaid expenses 13,945 17,651 Real estate 18,612 — Other assets 14,246 19,503 Total $ 206,133 $ 133,312 (1) Includes a $60.0 million deposit for the acquisition of One Kendall Square located in our Cambridge urban innovation cluster submarket of Greater Boston. |
Fair value measurements (Tables
Fair value measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | The following tables set forth the assets and liabilities that we measure at fair value on a recurring basis by level within the fair value hierarchy as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Available-for-sale equity securities $ 69,007 $ 69,007 $ — $ — Interest rate hedge agreements $ 180 $ — $ 180 $ — Liabilities: Interest rate hedge agreements $ 7,705 $ — $ 7,705 $ — December 31, 2015 Description Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets: Available-for-sale equity securities $ 137,621 $ 137,621 $ — $ — Interest rate hedge agreements $ 596 $ — $ 596 $ — Liabilities: Interest rate hedge agreements $ 4,314 $ — $ 4,314 $ — |
Schedule of the book and fair values of our marketable securities, interest rate swap agreements, secured notes payable, unsecured senior notes payable, unsecured senior line of credit, and unsecured senior bank term loan | As of September 30, 2016 , and December 31, 2015 , the book and estimated fair values of our available-for-sale equity securities, interest rate hedge agreements, secured notes payable, unsecured senior notes payable, $1.65 billion unsecured senior line of credit, and unsecured senior bank term loans were as follows (in thousands): September 30, 2016 December 31, 2015 Book Value Fair Value Book Value Fair Value Assets: Available-for-sale equity securities $ 69,007 $ 69,007 $ 137,621 $ 137,621 Interest rate hedge agreements $ 180 $ 180 $ 596 $ 596 Liabilities: Interest rate hedge agreements $ 7,705 $ 7,705 $ 4,314 $ 4,314 Secured notes payable $ 789,450 $ 802,722 $ 809,818 $ 832,342 Unsecured senior notes payable $ 2,377,482 $ 2,551,835 $ 2,030,631 $ 2,059,855 $1.65 billion unsecured senior line of credit $ 416,000 $ 415,962 $ 151,000 $ 151,450 Unsecured senior bank term loans $ 746,162 $ 750,746 $ 944,243 $ 951,098 |
Secured and unsecured senior 31
Secured and unsecured senior debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Unsecured Senior Line of Credit Amendment | On July 29, 2016, we amended our unsecured senior line of credit (the “Amended Credit Agreement”) and recognized a loss on early extinguishment of debt of approximately $2.4 million related to the write-off of unamortized loan fees. The key changes are summarized below: Amended Agreement Prior Agreement Commitments $1.65 billion $1.50 billion Interest rate LIBOR+1.00% LIBOR+1.10% Maturity date October 29, 2021 (1) January 3, 2019 |
Summary of secured and unsecured debt | The following table summarizes our secured and unsecured senior debt as of September 30, 2016 (dollars in thousands): Fixed-Rate/Hedged Variable-Rate Unhedged Variable-Rate Weighted-Average Interest Remaining Term (in years) Total Percentage Rate (1) Secured notes payable $ 419,276 $ 370,174 $ 789,450 18.2 % 3.34 % 2.6 Unsecured senior notes payable 2,377,482 — 2,377,482 55.0 4.14 7.5 $1.65 billion unsecured senior line of credit 200,000 216,000 416,000 9.6 1.52 5.1 2019 Unsecured Senior Bank Term Loan 398,355 — 398,355 9.2 3.03 2.3 2021 Unsecured Senior Bank Term Loan 347,807 — 347,807 8.0 2.18 4.3 Total/weighted average $ 3,742,920 $ 586,174 $ 4,329,094 100.0 % 3.49 % 5.6 Percentage of total debt 86% 14% 100% (1) See footnote 1 on the page 24 for additional information on weighted-average interest rate. |
Schedule of maturities of secured and unsecured debt | The following table summarizes our outstanding indebtedness and respective principal payments as of September 30, 2016 (dollars in thousands): Stated Rate Weighted-Average Interest Rate Maturity Principal Payments Remaining for the Periods Ending December 31, Unamortized (Deferred Financing Cost), (Discount)/Premium Debt (1) Date (2) 2016 2017 2018 2019 2020 Thereafter Principal Total Secured notes payable Maryland 2.44 % 2.81 % 1/20/17 (3) $ — $ 76,000 $ — $ — $ — $ — $ 76,000 $ (86 ) $ 75,914 Greater Boston L+1.35 2.47 8/23/17 (4) — 210,464 — — — — 210,464 (1,268 ) 209,196 Greater Boston L+1.50 1.85 1/28/19 (4) — — — 213,969 — — 213,969 (2,781 ) 211,188 Greater Boston L+2.00 2.79 4/20/19 (4) — — — 64,256 — — 64,256 (3,410 ) 60,846 Greater Boston, San Diego, Seattle, and Maryland 7.75 8.10 4/1/20 437 1,833 1,979 2,140 104,351 — 110,740 (1,169 ) 109,571 San Diego 4.66 4.99 1/1/23 370 1,540 1,614 1,692 1,770 29,905 36,891 (412 ) 36,479 Greater Boston 3.93 3.18 3/10/23 — — 1,091 1,505 1,566 77,838 82,000 3,463 85,463 San Francisco 6.50 6.76 7/1/36 — 20 22 23 25 703 793 — 793 Secured debt weighted-average interest rate/subtotal 3.32 % 3.34 807 289,857 4,706 283,585 107,712 108,446 795,113 (5,663 ) 789,450 2019 Unsecured Senior Bank Term Loan L+1.20 % 3.03 1/3/19 — — — 400,000 — — 400,000 (1,645 ) 398,355 2021 Unsecured Senior Bank Term Loan L+1.10 % 2.18 1/15/21 — — — — — 350,000 350,000 (2,193 ) 347,807 $1.65 billion unsecured senior line of credit L+1.00 % (5) 1.52 10/29/21 — — — — — 416,000 416,000 — 416,000 Unsecured senior notes payable 2.75 % 2.95 1/15/20 — — — — 400,000 — 400,000 (2,601 ) 397,399 Unsecured senior notes payable 4.60 % 4.72 4/1/22 — — — — — 550,000 550,000 (3,563 ) 546,437 Unsecured senior notes payable 3.90 % 4.02 6/15/23 — — — — — 500,000 500,000 (3,954 ) 496,046 Unsecured senior notes payable 4.30 % 4.46 1/15/26 — — — — — 300,000 300,000 (4,455 ) 295,545 Unsecured senior notes payable 3.95 % 4.11 1/15/27 — — — — — 350,000 350,000 (5,114 ) 344,886 Unsecured senior notes payable 4.50 % 4.58 7/30/29 — — — — — 300,000 300,000 (2,831 ) 297,169 Unsecured debt weighted average/subtotal 3.52 — — — 400,000 400,000 2,766,000 3,566,000 (26,356 ) 3,539,644 Weighted-average interest rate/total 3.49 % $ 807 $ 289,857 $ 4,706 $ 683,585 $ 507,712 $ 2,874,446 $ 4,361,113 $ (32,019 ) $ 4,329,094 Balloon payments $ — $ 286,464 $ — $ 678,226 $ 503,979 $ 2,866,487 $ 4,335,156 $ — $ 4,335,156 Principal amortization 807 3,393 4,706 5,359 3,733 7,959 25,957 (32,019 ) (6,062 ) Total debt $ 807 $ 289,857 $ 4,706 $ 683,585 $ 507,712 $ 2,874,446 $ 4,361,113 $ (32,019 ) $ 4,329,094 Fixed-rate/hedged variable-rate debt $ 807 $ 153,393 $ 4,706 $ 445,359 $ 507,712 $ 2,658,446 $ 3,770,423 $ (27,503 ) $ 3,742,920 Unhedged variable-rate debt — 136,464 — 238,226 — 216,000 590,690 (4,516 ) 586,174 Total debt $ 807 $ 289,857 $ 4,706 $ 683,585 $ 507,712 $ 2,874,446 $ 4,361,113 $ (32,019 ) $ 4,329,094 (1) Represents the weighted-average interest rate as of the end of the applicable period, plus the impact of debt premiums/discounts, interest rate hedge agreements, and deferred financing costs. (2) Reflects any extension options that we control. (3) We intend to repay this loan in December 2016 in advance of its maturity date of January 20, 2017. (4) Refer to “Secured Construction Loans” in Note 8 – “Secured and Unsecured Senior Debt” for options to extend maturity dates. (5) Our $1.65 billion 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. In addition to the cost of borrowing, the facility is subject to an annual facility fee of 0.20% , based on the aggregate commitments. Unamortized deferred financing costs related to our $1.65 billion unsecured senior line of credit are classified in other assets and are excluded from the calculation of the weighted-average interest rate. |
Summary of Secured Construction Loan | 360 Longwood Avenue We have a 27.5% effective interest in this real estate joint venture that is currently developing a building aggregating 413,799 RSF in our Longwood Medical Area submarket of Greater Boston. The cost at completion for this real estate project is expected to be approximately $350 million . As of September 30, 2016 , the joint venture had 313,407 RSF, or 76% of the project, leased and in service. Our equity investment in this real estate joint venture was $50.2 million as of September 30, 2016 . The real estate joint venture has a non-recourse, secured construction loan (“Longwood Construction Loan”) that includes the following key terms (dollars in thousands): Tranche Maturity Date Stated Rate Outstanding Balance Remaining Commitments Total Fixed rate April 1, 2017 (1 ) 5.25 % $ 173,226 $ 2,015 $ 175,241 Floating rate (2) April 1, 2017 (1 ) L+3.75 % 8,081 29,878 37,959 181,307 $ 31,893 $ 213,200 Unamortized deferred financing costs 235 $ 181,072 (1) We have two , one -year options to extend the stated maturity date to April 1, 2019, subject to certain conditions. (2) Borrowings under the floating rate tranche have an interest rate floor equal to 5.25% , and are subject to an interest rate cap on LIBOR of 3.50% . The following table summarizes our secured construction loans as of September 30, 2016 (dollars in thousands): Property/Market Stated Rate Maturity Date Outstanding Balance Remaining Commitments Total Aggregate Commitments 75/125 Binney Street/Greater Boston L+1.35 % 8/23/17 $ 210,464 $ 39,936 $ 250,400 50/60 Binney Street/Greater Boston L+1.50 % 1/28/19 (1) 213,969 136,031 350,000 100 Binney Street/Greater Boston L+2.00 % (2) 4/20/19 (3) 64,256 240,025 304,281 $ 488,689 $ 415,992 $ 904,681 (1) We have two , one -year options to extend the stated maturity date to January 28, 2021, subject to certain conditions. (2) Refer to Note 9 – “Interest Rate Hedge Agreements” to these unaudited consolidated financial statements for further information. (3) We have two , one -year options to extend the stated maturity date to April 20, 2021, subject to certain conditions. |
Interest rate hedge agreements
Interest rate hedge agreements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 hedge agreements that were designated as cash flow hedges of interest rate risk as of September 30, 2016 (dollars in thousands): Interest Rate Hedge Type Number of Contracts Weighted-Average Interest Pay/Cap Rate (1) Fair Value as of 9/30/16 Notional Amount in Effect as of Effective Date Maturity Date 9/30/16 12/31/16 12/31/17 12/31/18 Swap September 1, 2015 March 31, 2017 2 0.57% $ 18 $ 100,000 $ 100,000 $ — $ — Swap March 31, 2016 March 31, 2017 11 1.15% (2,691 ) 1,000,000 1,000,000 — — Swap March 31, 2017 March 31, 2018 15 1.31% (4,592 ) — — 900,000 — Swap March 29, 2018 March 31, 2019 6 1.01% (374 ) — — — 450,000 Cap July 29, 2016 April 20, 2019 2 2.00% 114 40,000 55,000 126,000 150,000 Total $ (7,525 ) (2) $ 1,140,000 $ 1,155,000 $ 1,026,000 $ 600,000 (1) In addition to the interest pay rate for each swap agreement, interest is payable at an applicable margin over LIBOR for borrowings outstanding as of September 30, 2016 , as listed under the column heading “Stated Rate” in our summary table of outstanding indebtedness and respective principal payments under Note 8 – “Secured and Unsecured Senior Debt” to these unaudited consolidated financial statements. (2) This total represents the net of the fair value of interest rate hedges in a liability position of $7.7 million and fair value of interest rate hedges in an asset position of $180 thousand . Refer to Note 7 – “Fair Value Measurements” to these unaudited consolidated financial statements for further information. |
Accounts payable, accrued exp33
Accounts payable, accrued expenses, and tenant security deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounts payable, accrued expenses, and tenant security deposits [Abstract] | |
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 September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Accounts payable and accrued expenses $ 269,915 $ 239,838 Acquired below-market leases 22,940 26,018 Conditional asset retirement obligations 3,636 5,777 Deferred rent liabilities 34,783 27,664 Interest rate hedge liabilities 7,705 4,314 Unearned rent and tenant security deposits 218,309 211,605 Other liabilities 47,893 74,140 Total $ 605,181 $ 589,356 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
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 and nine months ended September 30, 2016 and 2015 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Income (loss) from continuing operations $ 28,469 $ 39,699 $ (69,681 ) $ 103,180 Gain on sales of real estate – land parcels 90 — 90 — Net income attributable to noncontrolling interests (4,084 ) (170 ) (11,614 ) (925 ) Dividends on preferred stock (5,007 ) (6,247 ) (16,388 ) (18,740 ) Preferred stock redemption charge (13,095 ) — (25,614 ) — Net income attributable to unvested restricted stock awards (921 ) (623 ) (2,807 ) (1,736 ) Numerator for basic and diluted EPS – net income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders 5,452 32,659 (126,014 ) 81,779 Loss from discontinued operations — — — (43 ) Numerator for basic and diluted EPS – net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 5,452 $ 32,659 $ (126,014 ) $ 81,736 Denominator for basic EPS – weighted-average shares of common stock outstanding 76,651 71,500 74,526 71,426 Dilutive effect of forward equity sales agreements 751 — — — Denominator for diluted EPS – adjusted – weighted-average shares of common stock outstanding 77,402 71,500 74,526 71,426 Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders – basic and diluted: Continuing operations $ 0.07 $ 0.46 $ (1.69 ) $ 1.14 Discontinued operations — — — — Net income (loss) per share $ 0.07 $ 0.46 $ (1.69 ) $ 1.14 |
Stockholders' equity (Tables)
Stockholders' equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Accumulated other comprehensive loss attributable to Alexandria Real Estate Equities, Inc. | Accumulated other comprehensive income attributable to Alexandria consists of the following (in thousands): Net Unrealized Gain (Loss) on: Available-for- Sale Equity Securities Interest Rate Foreign Currency Translation Total Balance as of December 31, 2015 $ 117,599 $ (3,718 ) $ (64,690 ) $ 49,191 Other comprehensive (loss) income before reclassifications (70,055 ) (7,655 ) 842 (76,868 ) Amounts reclassified from other comprehensive (income) loss (18,627 ) 3,725 10,807 (4,095 ) (88,682 ) (3,930 ) 11,649 (80,963 ) Amounts attributable to noncontrolling interests — — 27 27 Net other comprehensive (loss) income (88,682 ) (3,930 ) 11,676 (80,936 ) Balance as of September 30, 2016 $ 28,917 $ (7,648 ) $ (53,014 ) $ (31,745 ) |
Noncontrolling interests (Table
Noncontrolling interests (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Noncontrolling Interest [Abstract] | |
Income from continuing operations and discontinued operations attributable to Alexandria Real Estate Equities, Inc. excluding amounts attributable to noncontrolling interests | The following table represents income from continuing operations and discontinued operations attributable to Alexandria Real Estate Equities, Inc., for the three and nine months ended September 30, 2016 and 2015, excluding the amounts attributable to these noncontrolling interests (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s stockholders $ 24,475 $ 39,529 $ (81,205 ) $ 102,255 Loss from discontinued operations — — — (43 ) Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s stockholders $ 24,475 $ 39,529 $ (81,205 ) $ 102,212 |
Assets classified as held for37
Assets classified as held for sale (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
North America | |
Long Lived Assets Held-for-sale [Line Items] | |
Summary of net assets of discontinued operations and (loss) income from discontinued operations, net | Assets located in North America The following is a summary of net assets held for sale in North America as of September 30, 2016 , and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Total assets $ 15,456 $ 12,896 Total liabilities — — Net assets classified as held for sale – North America $ 15,456 $ 12,896 The following is a summary of operating information of our real estate investments in North America classified as held for sale as of September 30, 2016 , and real estate investments in North America sold subsequent to January 1, 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total revenues $ 540 $ 1,304 $ 2,322 $ 3,551 Operating expenses (128 ) (779 ) (734 ) (1,960 ) 412 525 1,588 1,591 General and administrative expenses (5 ) (25 ) (37 ) (43 ) Depreciation expense (3 ) (195 ) (131 ) (989 ) Impairment of real estate — — (863 ) — Gain on sales of real estate – land parcels 90 — 90 — Income from assets classified as held for sale – North America $ 494 $ 305 $ 647 $ 559 |
Asia | |
Long Lived Assets Held-for-sale [Line Items] | |
Summary of net assets of discontinued operations and (loss) income from discontinued operations, net | Assets located in Asia On March 31, 2016, we evaluated two separate potential transactions to sell land parcels in our India submarket aggregating 28 acres. We determined that these land parcels met the criteria for classification as held for sale as of March 31, 2016, including among others, the following: (i) management having the authority committed to sell the real estate, and (ii) the sale was probable within one year. Upon classification as held for sale, we recognized an impairment charge of $29.0 million to lower the carrying amount of the real estate to its estimated fair value less cost to sell of approximately $10.2 million . In determining the carrying amount for evaluating the real estate for impairment, we considered our net book value, costs to sell, and a $10.6 million cumulative foreign currency translation loss. During the nine months ended September 30, 2016 , we sold these two land parcels for an aggregate sales price of $12.8 million at no gain or loss. On April 22, 2016, we decided to monetize our remaining real estate investments located in Asia in order to invest capital into our highly leased value-creation pipeline. We determined that these investments met the criteria for classification as held for sale when we achieved the following, among other criteria: (i) committed to sell all of our real estate investments in Asia, (ii) obtained approval from our Board of Directors, and (iii) determined that the sale of each property/land parcel was probable within one year. During the three months ended June 30, 2016, we recognized an impairment charge of $154.1 million related to our remaining real estate investments located in Asia, to lower the carrying costs of the real estate to its estimated fair value less costs to sell. In determining the carrying amount for evaluating the real estate for impairment, we considered our net book value, costs to sell, and a $40.2 million cumulative foreign currency translation loss. As of September 30, 2016 , we had eight operating properties aggregating 1.2 million RSF and land parcels aggregating 168 acres remaining in Asia, which continued to meet the classification as held for sale. During the three months ended September 30, 2016 , we updated our assumptions of fair value for the remaining real estate investments located in Asia and, as a result, we recognized an additional impairment charge of $7.3 million . The following is a summary of completed and remaining dispositions of our real estate investments in Asia as of September 30, 2016 . We expect to complete the transactions of our remaining real estate investments in Asia over the next several quarters and to recover our remaining net book value, after disposition costs, from sales of the remaining real estate investments located in Asia classified as held for sale as of September 30, 2016 . Rental Properties Land Parcels Number RSF Number Acres Sales Price Completed dispositions as of September 30, 2016 — — 2 28 $ 12,767 Completed dispositions in October 2016 6 566,355 2 109 39,590 Remaining assets held for sale (1) 2 634,328 2 59 53,600 Total 8 1,200,683 6 196 $ 105,957 (1) Remaining assets held for sale consist of two operating properties located in China and two land parcels in India. The fair value considered in our impairment of each investment was determined based on the following: (i) preliminary non-binding letters of intent, (ii) significant other observable inputs, including the consideration of certain local government land acquisition programs, and (iii) discounted cash flow analyses. We evaluated whether our real estate investments in Asia met the criteria for classification as discontinued operations, including, among others, (i) if the properties meet the held for sale criteria, and (ii) if the sale of these assets represents a strategic shift that has or will have a major effect on our operations and financial results. In our assessment, we considered, among other factors, that our total revenue from properties located in Asia was approximately 1.5% of our total consolidated revenues. At the time of evaluation, we also noted total assets related to our investment in Asia were approximately 2.5% of our total assets. Consequently, we concluded that the monetization of our real estate investments in Asia did not represent a strategic shift that would have a major effect in our operations and financial results and, therefore, did not meet the criteria for classification as discontinued operations. The following is a summary of net assets of our real estate investments in Asia that were classified as held for sale as of September 30, 2016 (in thousands): September 30, 2016 December 31, 2015 Total assets $ 69,512 $ 218,816 Total liabilities (23,790 ) (11,304 ) Total accumulated other comprehensive loss 40,870 (1) 41,118 Net assets classified as held for sale – Asia $ 86,592 $ 248,630 (1) Represents cumulative foreign currency translation losses related to our real estate investments located in Asia. The following is a summary of operating information of our real estate investments in Asia, including, (i) eight operating properties aggregating 1.2 million RSF and land parcels aggregating 168 acres that were classified as held for sale as of September 30, 2016 , and (ii) two land parcels and a development project in India that were sold subsequent to January 1, 2015, for the three and nine months ended September 30, 2016 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Total revenues $ 3,493 $ 1,688 $ 10,009 $ 5,073 Operating expenses (3,041 ) (2,596 ) (7,764 ) (5,780 ) 452 (908 ) 2,245 (707 ) General and administrative expenses (432 ) (872 ) (2,154 ) (3,684 ) Depreciation expense — (2,129 ) (3,009 ) (6,277 ) Impairment of real estate (7,326 ) — (190,424 ) (14,510 ) Net loss from assets classified as held for sale – Asia $ (7,306 ) $ (3,909 ) $ (193,342 ) $ (25,178 ) |
Condensed consolidating finan38
Condensed consolidating financial information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Condensed Consolidated Financial Information [Abstract] | |
Condensed consolidating balance sheet | Condensed Consolidating Balance Sheet as of September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Assets Investments in real estate $ — $ — $ 7,939,179 $ — $ 7,939,179 Investments in unconsolidated real estate JVs — — 133,580 — 133,580 Cash and cash equivalents 18,530 — 139,398 — 157,928 Restricted cash 107 — 16,299 — 16,406 Tenant receivables — — 9,635 — 9,635 Deferred rent — — 318,286 — 318,286 Deferred leasing costs — — 191,765 — 191,765 Investments — 4,487 316,502 — 320,989 Investments in and advances to affiliates 7,521,833 6,848,858 139,428 (14,510,119 ) — Other assets 42,811 — 163,322 — 206,133 Total assets $ 7,583,281 $ 6,853,345 $ 9,367,394 $ (14,510,119 ) $ 9,293,901 Liabilities, Noncontrolling Interests, and Equity Secured notes payable $ — $ — $ 789,450 $ — $ 789,450 Unsecured senior notes payable 2,377,482 — — — 2,377,482 Unsecured senior line of credit 416,000 — — — 416,000 Unsecured senior bank term loans 746,162 — — — 746,162 Accounts payable, accrued expenses, and tenant security deposits 67,049 — 538,132 — 605,181 Dividends payable 66,510 — 195 — 66,705 Total liabilities 3,673,203 — 1,327,777 — 5,000,980 Redeemable noncontrolling interests — — 9,012 — 9,012 Alexandria Real Estate Equities, Inc.’s stockholders’ equity 3,910,078 6,853,345 7,656,774 (14,510,119 ) 3,910,078 Noncontrolling interests — — 373,831 — 373,831 Total equity 3,910,078 6,853,345 8,030,605 (14,510,119 ) 4,283,909 Total liabilities, noncontrolling interests, and equity $ 7,583,281 $ 6,853,345 $ 9,367,394 $ (14,510,119 ) $ 9,293,901 Condensed Consolidating Balance Sheet as of December 31, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Assets Investments in real estate $ — $ — $ 7,629,922 $ — $ 7,629,922 Investments in unconsolidated real estate JVs — — 127,212 — 127,212 Cash and cash equivalents 31,982 — 93,116 — 125,098 Restricted cash 91 — 28,781 — 28,872 Tenant receivables — — 10,485 — 10,485 Deferred rent — — 280,570 — 280,570 Deferred leasing costs — — 192,081 — 192,081 Investments — 4,702 348,763 — 353,465 Investments in and advances to affiliates 7,194,092 6,490,009 132,121 (13,816,222 ) — Other assets 36,808 — 96,504 — 133,312 Total assets $ 7,262,973 $ 6,494,711 $ 8,939,555 $ (13,816,222 ) $ 8,881,017 Liabilities, Noncontrolling Interests, and Equity Secured notes payable $ — $ — $ 809,818 $ — $ 809,818 Unsecured senior notes payable 2,030,631 — — — 2,030,631 Unsecured senior line of credit 151,000 — — — 151,000 Unsecured senior bank term loans 944,243 — — — 944,243 Accounts payable, accrued expenses, and tenant security deposits 100,294 — 489,062 — 589,356 Dividends payable 61,718 — 287 — 62,005 Total liabilities 3,287,886 — 1,299,167 — 4,587,053 Redeemable noncontrolling interests — — 14,218 — 14,218 Alexandria Real Estate Equities, Inc.’s stockholders’ equity 3,975,087 6,494,711 7,321,511 (13,816,222 ) 3,975,087 Noncontrolling interests — — 304,659 — 304,659 Total equity 3,975,087 6,494,711 7,626,170 (13,816,222 ) 4,279,746 Total liabilities, noncontrolling interests, and equity $ 7,262,973 $ 6,494,711 $ 8,939,555 $ (13,816,222 ) $ 8,881,017 |
Condensed consolidating statements of income | Condensed Consolidating Statement of Income for the Three Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 166,591 $ — $ 166,591 Tenant recoveries — — 58,681 — 58,681 Other income 1,077 91 7,852 (3,913 ) 5,107 Total revenues 1,077 91 233,124 (3,913 ) 230,379 Expenses: Rental operations — — 72,002 — 72,002 General and administrative 15,568 — 4,199 (3,913 ) 15,854 Interest 21,318 — 4,532 — 25,850 Depreciation and amortization 1,722 — 75,411 — 77,133 Impairment of real estate — — 8,114 — 8,114 Loss on early extinguishment of debt 3,230 — — — 3,230 Total expenses 41,838 — 164,258 (3,913 ) 202,183 Equity in earnings of unconsolidated real estate JVs — — 273 — 273 Equity in earnings of affiliates 65,236 55,532 1,100 (121,868 ) — Income from continuing operations 24,475 55,623 70,239 (121,868 ) 28,469 Gain on sales of real estate – land parcels — — 90 — 90 Net income 24,475 55,623 70,329 (121,868 ) 28,559 Net income attributable to noncontrolling interests — — (4,084 ) — (4,084 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders 24,475 55,623 66,245 (121,868 ) 24,475 Dividends on preferred stock (5,007 ) — — — (5,007 ) Preferred stock redemption charge (13,095 ) — — — (13,095 ) Net income attributable to unvested restricted stock awards (921 ) — — — (921 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 5,452 $ 55,623 $ 66,245 $ (121,868 ) $ 5,452 Condensed Consolidating Statement of Income for the Three Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 155,311 $ — $ 155,311 Tenant recoveries — — 56,119 — 56,119 Other income 3,355 (87 ) 8,025 (4,113 ) 7,180 Total revenues 3,355 (87 ) 219,455 (4,113 ) 218,610 Expenses: Rental operations — — 68,846 — 68,846 General and administrative 13,511 — 5,745 (4,113 ) 15,143 Interest 20,470 — 7,209 — 27,679 Depreciation and amortization 1,799 — 66,154 — 67,953 Total expenses 35,780 — 147,954 (4,113 ) 179,621 Equity in earnings of unconsolidated real estate JVs — — 710 — 710 Equity in earnings of affiliates 71,954 63,964 1,259 (137,177 ) — Net income 39,529 63,877 73,470 (137,177 ) 39,699 Net income attributable to noncontrolling interests — — (170 ) — (170 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders 39,529 63,877 73,300 (137,177 ) 39,529 Dividends on preferred stock (6,247 ) — — — (6,247 ) Net income attributable to unvested restricted stock awards (623 ) — — — (623 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 32,659 $ 63,877 $ 73,300 $ (137,177 ) $ 32,659 Condensed Consolidating Statement of Income for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 486,505 $ — $ 486,505 Tenant recoveries — — 165,385 — 165,385 Other income 7,086 115 24,091 (10,638 ) 20,654 Total revenues 7,086 115 675,981 (10,638 ) 672,544 Expenses: Rental operations — — 205,164 — 205,164 General and administrative 45,224 — 11,840 (10,638 ) 46,426 Interest 60,729 — 15,001 — 75,730 Depreciation and amortization 4,997 — 213,171 — 218,168 Impairment of real estate — — 193,237 — 193,237 Loss on early extinguishment of debt 3,230 — — — 3,230 Total expenses 114,180 — 638,413 (10,638 ) 741,955 Equity in losses of unconsolidated real estate JVs — — (270 ) — (270 ) Equity in earnings (losses) of affiliates 25,889 (6,282 ) (98 ) (19,509 ) — (Loss) income from continuing operations (81,205 ) (6,167 ) 37,200 (19,509 ) (69,681 ) Gain on sales of real estate – land parcels — — 90 — 90 Net (loss) income (81,205 ) (6,167 ) 37,290 (19,509 ) (69,591 ) Net income attributable to noncontrolling interests — — (11,614 ) — (11,614 ) Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders (81,205 ) (6,167 ) 25,676 (19,509 ) (81,205 ) Dividends on preferred stock (16,388 ) — — — (16,388 ) Preferred stock redemption charge (25,614 ) — — — (25,614 ) Net income attributable to unvested restricted stock awards (2,807 ) — — — (2,807 ) Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ (126,014 ) $ (6,167 ) $ 25,676 $ (19,509 ) $ (126,014 ) Condensed Consolidating Statement of Income for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Revenues: Rental $ — $ — $ 450,724 $ — $ 450,724 Tenant recoveries — — 154,107 — 154,107 Other income 9,890 (128 ) 17,014 (12,088 ) 14,688 Total revenues 9,890 (128 ) 621,845 (12,088 ) 619,519 Expenses: Rental operations — — 192,319 — 192,319 General and administrative 38,960 — 17,647 (12,088 ) 44,519 Interest 57,494 — 20,089 — 77,583 Depreciation and amortization 4,515 — 184,529 — 189,044 Impairment of real estate — — 14,510 — 14,510 Loss on early extinguishment of debt 189 — — — 189 Total expenses 101,158 — 429,094 (12,088 ) 518,164 Equity in earnings of unconsolidated real estate JVs — — 1,825 — 1,825 Equity in earnings of affiliates 193,480 174,800 3,446 (371,726 ) — Income from continuing operations 102,212 174,672 198,022 (371,726 ) 103,180 Loss from discontinued operations — — (43 ) — (43 ) Net income 102,212 174,672 197,979 (371,726 ) 103,137 Net income attributable to noncontrolling interests — — (925 ) — (925 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders 102,212 174,672 197,054 (371,726 ) 102,212 Dividends on preferred stock (18,740 ) — — — (18,740 ) Net income attributable to unvested restricted stock awards (1,736 ) — — — (1,736 ) Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 81,736 $ 174,672 $ 197,054 $ (371,726 ) $ 81,736 |
Condensed consolidating statement comprehensive income | Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net income $ 24,475 $ 55,623 $ 70,329 $ (121,868 ) $ 28,559 Other comprehensive income (loss): Unrealized losses on available-for-sale equity securities: Unrealized holding gains (losses) arising during the period — 58 (38,679 ) — (38,621 ) Reclassification adjustment for gains included in net income — (159 ) (8,381 ) — (8,540 ) Unrealized losses on available-for-sale equity securities, net — (101 ) (47,060 ) — (47,161 ) Unrealized gains (losses) on interest rate hedge agreements: Unrealized interest rate hedge gains arising during the period 2,979 — 3 — 2,982 Reclassification adjustment for amortization of interest expense (income) included in net income 1,714 — (12 ) — 1,702 Unrealized gains (losses) on interest rate hedge agreements, net 4,693 — (9 ) — 4,684 Unrealized gains on foreign currency translation: Unrealized foreign currency translation losses during the period — — (1,322 ) — (1,322 ) Reclassification adjustment for losses included in net income — — 3,779 — 3,779 Unrealized gains on foreign currency translation, net — — 2,457 — 2,457 Total other comprehensive income (loss) 4,693 (101 ) (44,612 ) — (40,020 ) Comprehensive income (loss) 29,168 55,522 25,717 (121,868 ) (11,461 ) Less: comprehensive income attributable to noncontrolling interests — — (4,081 ) — (4,081 ) Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 29,168 $ 55,522 $ 21,636 $ (121,868 ) $ (15,542 ) Condensed Consolidating Statement of Comprehensive Income for the Three Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net income $ 39,529 $ 63,877 $ 73,470 $ (137,177 ) $ 39,699 Other comprehensive loss: Unrealized losses on available-for-sale equity securities: Unrealized holding losses arising during the period — (41 ) (29,791 ) — (29,832 ) Reclassification adjustment for gains included in net income — (117 ) (4,851 ) — (4,968 ) Unrealized losses on available-for-sale equity securities, net — (158 ) (34,642 ) — (34,800 ) Unrealized losses on interest rate hedge agreements: Unrealized interest rate hedge losses arising during the period (5,474 ) — — — (5,474 ) Reclassification adjustment for amortization of interest expense included in net income 727 — — — 727 Unrealized losses on interest rate hedge agreements, net (4,747 ) — — — (4,747 ) Unrealized losses on foreign currency translation: Unrealized foreign currency translation losses during the period — — (9,294 ) — (9,294 ) Unrealized losses on foreign currency translation, net — — (9,294 ) — (9,294 ) Total other comprehensive loss (4,747 ) (158 ) (43,936 ) — (48,841 ) Comprehensive income 34,782 63,719 29,534 (137,177 ) (9,142 ) Less: comprehensive income attributable to noncontrolling interests — — (71 ) — (71 ) Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 34,782 $ 63,719 $ 29,463 $ (137,177 ) $ (9,213 ) Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net (loss) income $ (81,205 ) $ (6,167 ) $ 37,290 $ (19,509 ) $ (69,591 ) Other comprehensive loss: Unrealized losses on available-for-sale equity securities: Unrealized holding gains (losses) arising during the period — 136 (70,191 ) — (70,055 ) Reclassification adjustment for gains included in net income — (148 ) (18,479 ) — (18,627 ) Unrealized losses on available-for-sale equity securities, net — (12 ) (88,670 ) — (88,682 ) Unrealized losses on interest rate hedge agreements: Unrealized interest rate hedge (losses) gains arising during the period (7,658 ) — 3 — (7,655 ) Reclassification adjustment for amortization of interest expense (income) included in net income 3,737 — (12 ) — 3,725 Unrealized losses on interest rate hedge agreements, net (3,921 ) — (9 ) — (3,930 ) Unrealized gains on foreign currency translation: Unrealized foreign currency translation gains arising during the period — — 842 — 842 Reclassification adjustment for losses included in net income — — 10,807 — 10,807 Unrealized gains on foreign currency translation, net — — 11,649 — 11,649 Total other comprehensive loss (3,921 ) (12 ) (77,030 ) — (80,963 ) Comprehensive loss (85,126 ) (6,179 ) (39,740 ) (19,509 ) (150,554 ) Less: comprehensive income attributable to noncontrolling interests — — (11,587 ) — (11,587 ) Comprehensive loss attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ (85,126 ) $ (6,179 ) $ (51,327 ) $ (19,509 ) $ (162,141 ) Condensed Consolidating Statement of Comprehensive Income for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non- Guarantor Subsidiaries Eliminations Consolidated Net income $ 102,212 $ 174,672 $ 197,979 $ (371,726 ) $ 103,137 Other comprehensive (loss) income: Unrealized (losses) gains on available-for-sale equity securities: Unrealized holding (losses) gains arising during the period — (19 ) 54,023 — 54,004 Reclassification adjustment for gains included in net income — (76 ) (2,427 ) — (2,503 ) Unrealized (losses) gains on available-for-sale equity securities, net — (95 ) 51,596 — 51,501 Unrealized losses on interest rate hedge agreements: Unrealized interest rate hedge losses arising during the period (9,712 ) — — — (9,712 ) Reclassification adjustment for amortization of interest expense included in net income 1,942 — — — 1,942 Unrealized losses on interest rate hedge agreements, net (7,770 ) — — — (7,770 ) Unrealized losses on foreign currency translation: Unrealized foreign currency translation losses during the period — — (17,072 ) — (17,072 ) Reclassification adjustment for losses included in net income — — 9,236 — 9,236 Unrealized losses on foreign currency translation, net — — (7,836 ) — (7,836 ) Total other comprehensive (loss) income (7,770 ) (95 ) 43,760 — 35,895 Comprehensive income 94,442 174,577 241,739 (371,726 ) 139,032 Less: comprehensive income attributable to noncontrolling interests — — (954 ) — (954 ) Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders $ 94,442 $ 174,577 $ 240,785 $ (371,726 ) $ 138,078 |
Condensed consolidating statement cash flows | Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non-Guarantor Subsidiaries Eliminations Consolidated Operating Activities Net (loss) income $ (81,205 ) $ (6,167 ) $ 37,290 $ (19,509 ) $ (69,591 ) Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 4,997 — 213,171 — 218,168 Loss on early extinguishment of debt 3,230 — — — 3,230 Gain on sales of real estate – land parcels — — (90 ) — (90 ) Impairment of real estate — — 193,237 — 193,237 Equity in losses of unconsolidated real estate JVs — — 270 — 270 Distributions of earnings from unconsolidated real estate JVs — — 286 — 286 Amortization of loan fees 5,826 — 2,966 — 8,792 Amortization of debt discounts (premiums) 353 — (470 ) — (117 ) Amortization of acquired below-market leases — — (2,905 ) — (2,905 ) Deferred rent — — (30,679 ) — (30,679 ) Stock compensation expense 19,007 — — — 19,007 Equity in (earnings) losses of affiliates (25,889 ) 6,282 98 19,509 — Investment gains — (566 ) (28,155 ) — (28,721 ) Investment losses — 188 10,482 — 10,670 Changes in operating assets and liabilities: Restricted cash (16 ) — (262 ) — (278 ) Tenant receivables — — 843 — 843 Deferred leasing costs — — (21,621 ) — (21,621 ) Other assets (8,332 ) — (6,481 ) — (14,813 ) Accounts payable, accrued expenses, and tenant security deposits (35,351 ) (592 ) 42,106 — 6,163 Net cash (used in) provided by operating activities (117,380 ) (855 ) 410,086 — 291,851 Investing Activities Proceeds from sales of real estate — — 27,332 — 27,332 Additions to real estate — — (638,568 ) — (638,568 ) Purchase of real estate — — (18,108 ) — (18,108 ) Deposits for investing activities — — (54,998 ) — (54,998 ) Investments in unconsolidated real estate JVs — — (6,924 ) — (6,924 ) Investments in subsidiaries (301,852 ) (365,132 ) (7,405 ) 674,389 — Additions to investments — — (68,384 ) — (68,384 ) Sales of investments — 1,174 34,121 — 35,295 Repayment of notes receivable — — 9,054 — 9,054 Net cash used in investing activities $ (301,852 ) $ (363,958 ) $ (723,880 ) $ 674,389 $ (715,301 ) Condensed Consolidating Statement of Cash Flows (continued) for the Nine Months Ended September 30, 2016 (In thousands) (Unaudited) Alexandria Real Alexandria Real Combined Eliminations Consolidated Financing Activities Borrowings from secured notes payable $ — $ — $ 215,330 $ — $ 215,330 Repayments of borrowings from secured notes payable — — (234,096 ) — (234,096 ) Proceeds from issuance of unsecured senior notes payable 348,604 — — — 348,604 Borrowings from unsecured senior line of credit 2,349,000 — — — 2,349,000 Repayments of borrowings from unsecured senior line of credit (2,084,000 ) — — — (2,084,000 ) Repayments of borrowings from unsecured bank term loans (200,000 ) — — — (200,000 ) Transfer to/from parent company (69,139 ) 364,813 378,715 (674,389 ) — Payment of loan fees (12,401 ) — (4,098 ) — (16,499 ) Change in restricted cash related to financing activities — — 7,742 — 7,742 Repurchase of 7.00% Series D cumulative convertible preferred stock (98,633 ) — — — (98,633 ) Proceeds from the issuance of common stock 367,802 — — — 367,802 Dividends on common stock (177,966 ) — — — (177,966 ) Dividends on preferred stock (17,487 ) — — — (17,487 ) Financing costs paid for sale of noncontrolling interests — — (8,093 ) — (8,093 ) Contributions from and sale of noncontrolling interests — — 68,621 — 68,621 Distributions to and purchase of noncontrolling interests — — (62,605 ) — (62,605 ) Net cash provided by financing activities 405,780 364,813 361,516 (674,389 ) 457,720 Effect of foreign exchange rate changes on cash and cash equivalents — — (1,440 ) — (1,440 ) Net (decrease) increase in cash and cash equivalents (13,452 ) — 46,282 — 32,830 Cash and cash equivalents as of the beginning of period 31,982 — 93,116 — 125,098 Cash and cash equivalents as of the end of period $ 18,530 $ — $ 139,398 $ — $ 157,928 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest, net of interest capitalized $ 58,062 $ — $ 758 $ — $ 58,820 Non-Cash Investing Activities: Change in accrued construction $ — $ — $ 23,023 $ — $ 23,023 Non-Cash Financing Activities: Redemption of redeemable noncontrolling interests $ — $ — $ (5,000 ) $ — $ (5,000 ) Condensed Consolidating Statement of Cash Flows for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non-Guarantor Subsidiaries Eliminations Consolidated Operating Activities Net income $ 102,212 $ 174,672 $ 197,979 $ (371,726 ) $ 103,137 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 4,515 — 184,529 — 189,044 Loss on early extinguishment of debt 189 — — — 189 Impairment of real estate — — 14,510 — 14,510 Equity in earnings of unconsolidated real estate JVs — — (1,825 ) — (1,825 ) Distributions of earnings from unconsolidated real estate JVs — — 740 — 740 Amortization of loan fees 5,717 — 2,631 — 8,348 Amortization of debt discounts (premiums) 243 — (525 ) — (282 ) Amortization of acquired below-market leases — — (5,121 ) — (5,121 ) Deferred rent — — (34,421 ) — (34,421 ) Stock compensation expense 12,922 — — — 12,922 Equity in earnings of affiliates (193,480 ) (174,800 ) (3,446 ) 371,726 — Investment gains — — (22,368 ) — (22,368 ) Investment losses — 269 10,888 — 11,157 Changes in operating assets and liabilities: Restricted cash (28 ) — 52 — 24 Tenant receivables — — 380 — 380 Deferred leasing costs — — (47,725 ) — (47,725 ) Other assets (9,228 ) — (4,493 ) — (13,721 ) Accounts payable, accrued expenses, and tenant security deposits 31,895 — (472 ) — 31,423 Net cash (used in) provided by operating activities (45,043 ) 141 291,313 — 246,411 Investing Activities Proceeds from sales of real estate — — 92,455 — 92,455 Additions to real estate — — (362,215 ) — (362,215 ) Purchase of real estate — — (248,933 ) — (248,933 ) Deposit for investing activities — — (6,707 ) — (6,707 ) Investments in unconsolidated real estate JVs — — (7,979 ) — (7,979 ) Investments in subsidiaries (302,455 ) (215,128 ) (4,493 ) 522,076 — Additions to investments — — (67,965 ) — (67,965 ) Sales of investments — 6 39,584 — 39,590 Proceeds from repayment of notes receivable — — 4,264 — 4,264 Net cash used in investing activities $ (302,455 ) $ (215,122 ) $ (561,989 ) $ 522,076 $ (557,490 ) Condensed Consolidating Statement of Cash Flows (continued) for the Nine Months Ended September 30, 2015 (In thousands) (Unaudited) Alexandria Real Estate Equities, Inc. (Issuer) Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) Combined Non-Guarantor Subsidiaries Eliminations Consolidated Financing Activities Borrowings from secured notes payable $ — $ — $ 47,375 $ — $ 47,375 Repayments of borrowings from secured notes payable — — (12,217 ) — (12,217 ) Principal borrowings from unsecured senior line of credit 1,432,000 — — — 1,432,000 Repayments of borrowings from unsecured senior line of credit (893,000 ) — — — (893,000 ) Repayment of borrowings from unsecured senior bank term loan (25,000 ) — — — (25,000 ) Transfer to/from parent company 1,853 214,926 305,297 (522,076 ) — Change in restricted cash related to financing activities — — (4,737 ) — (4,737 ) Proceeds from the issuance of common stock 5,052 — — — 5,052 Payment of loan fees (2,140 ) — (2,042 ) — (4,182 ) Dividends on common stock (162,280 ) — — — (162,280 ) Dividends on preferred stock (18,740 ) — — — (18,740 ) Contributions by noncontrolling interests — — 340 — 340 Distributions to and purchase of noncontrolling interests — — (62,973 ) — (62,973 ) Net cash provided by financing activities 337,745 214,926 271,043 (522,076 ) 301,638 Effect of foreign exchange rate changes on cash and cash equivalents — — (187 ) — (187 ) Net (decrease) increase in cash and cash equivalents (9,753 ) (55 ) 180 — (9,628 ) 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 $ 42,738 $ 8 $ 33,637 $ — $ 76,383 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest, net of interest capitalized $ 47,193 $ — $ 17,004 $ — $ 64,197 Non-Cash Investing Activities: Change in accrued construction $ — $ — $ (7,305 ) $ — $ (7,305 ) 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 $ (51,887 ) $ — $ — $ — $ (51,887 ) |
Background (Details)
Background (Details) $ in Billions | 9 Months Ended |
Sep. 30, 2016USD ($)ft² | |
Nature of Business [Line Items] | |
Total Market Capitalization | $ | $ 13 |
Investment-grade client tenants as a percentage of total annualized base rent | 54.00% |
Percentage of leases which are triple net leases | 97.00% |
Percentage of leases containing effective annual rent escalations | 95.00% |
Percentage of leases providing for recapture of certain capital expenditures | 95.00% |
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% |
North America | |
Nature of Business [Line Items] | |
Total Square Footage of Asset Base | 24,499,286 |
Area of Real Estate Property | 18,820,579 |
Background Schedule of rentable
Background Schedule of rentable square feet (Details) | Sep. 30, 2016ft² |
Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 17,983,800 |
Total Square Footage of Asset Base | 23,662,507 |
Consolidated Properties [Member] | Future Value-creation Projects [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property, Future Development | 5,678,707 |
Unconsolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 836,779 |
Total Square Footage of Asset Base | 836,779 |
Unconsolidated Properties [Member] | Future Value-creation Projects [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property, Future Development | 0 |
North America | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 18,820,579 |
Total Square Footage of Asset Base | 24,499,286 |
North America | Future Value-creation Projects [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property, Future Development | 5,678,707 |
Operating properties [Member] | Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 16,052,751 |
Operating properties [Member] | Unconsolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 313,407 |
Operating properties [Member] | North America | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 16,366,158 |
Development and Redevelopment Projects[Member] | Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 1,931,049 |
Development and Redevelopment Projects[Member] | Unconsolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 523,372 |
Development and Redevelopment Projects[Member] | North America | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 2,454,421 |
Projects to be delivered by 4Q16 [Member] | Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 366,081 |
Projects to be delivered by 4Q16 [Member] | Unconsolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 100,392 |
Projects to be delivered by 4Q16 [Member] | North America | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 466,473 |
Projects to be delivered in 2017 and 2018 [Member] | Consolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 1,564,968 |
Projects to be delivered in 2017 and 2018 [Member] | Unconsolidated Properties [Member] | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 422,980 |
Projects to be delivered in 2017 and 2018 [Member] | North America | |
Real Estate Properties [Line Items] | |
Area of Real Estate Property | 1,987,948 |
Basis of presentation and sum41
Basis of presentation and summary of significant accounting policies (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Property, plant and equipment depreciated on a straight-line basis using an estimated life | |||
Maximum expected period of sale of property (in years) | 1 year | ||
Cost method investment ownership percentage | 10.00% | 10.00% | |
Maximum Expected Period for Collection of Receivables | 1 year | ||
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 | |
Minimum percentage of taxable income to be distributed | 90.00% | ||
Percent of Taxable Income, Generally Distributed as Dividend | 100.00% | ||
Deferred financing costs – $1.65 billion unsecured senior line of credit | $ 15,168,000 | 11,909,000 | |
Accumulated other comprehensive (loss) income | (31,745,000) | 49,191,000 | |
Remaining contractual payments under ground lease agreements | 607,300,000 | ||
Distributions of earnings from unconsolidated real estate joint ventures | $ 286,000 | $ 740,000 | |
Land improvements | Maximum | |||
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 | ||
Unsecured Bank Term Loans [Member] | |||
Property, plant and equipment depreciated on a straight-line basis using an estimated life | |||
Unamortized debt issuance expense | 30,100,000 | ||
Unsecured Senior Line of Credit | Other Assets | |||
Property, plant and equipment depreciated on a straight-line basis using an estimated life | |||
Deferred financing costs – $1.65 billion unsecured senior line of credit | $ 11,900,000 |
Basis of presentation and sum42
Basis of presentation and summary of significant accounting policies Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | ||||
Professional Fees | $ 46 | $ 530 | $ 380 | $ 1,341 |
Interest income included in other income | 795 | 1,272 | 2,223 | 2,136 |
Gain (Loss) on Investments | 4,266 | 5,378 | 18,051 | 11,211 |
Other income | $ 5,107 | $ 7,180 | $ 20,654 | $ 14,688 |
Investments in real estate Sche
Investments in real estate Schedule of investment in real estates (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Land/future value-added projects: | ||
Investments in real estate, net | $ 7,939,179 | $ 7,629,922 |
North America | ||
Real Estate Properties [Line Items] | ||
Land (related to rental properties) | 763,794 | 677,649 |
Buildings and building improvements | 7,109,271 | 6,644,634 |
Other improvements | 371,888 | 260,605 |
Rental properties | 8,244,953 | 7,582,888 |
Construction in progress ("CIP")/current value-added projects: | ||
Real Estate Investment Property, at Cost | 9,359,398 | 8,707,533 |
Land/future value-added projects: | ||
Land available for development | 238,728 | 206,939 |
Less: accumulated depreciation | (1,473,064) | (1,299,548) |
Investments in real estate, net | 7,886,334 | 7,407,985 |
Asia | ||
Land/future value-added projects: | ||
Investments in real estate, net | 52,845 | 221,937 |
Construction in progress ("CIP")/current value-added projects: | North America | ||
Construction in progress ("CIP")/current value-added projects: | ||
Development in process | 875,717 | 917,706 |
Current, Near-Term and Future Value-Creation Projects [Member] | North America | ||
Construction in progress ("CIP")/current value-added projects: | ||
Real Estate Investment Property, at Cost | $ 1,114,445 | $ 1,124,645 |
Investments in real estate Inve
Investments in real estate Investment in consolidated real estate joint ventures (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Dec. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($)ft² | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
Real Estate Properties [Line Items] | ||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ 68,014 | |||||
Investments in real estate | 7,939,179 | $ 7,629,922 | ||||
Cash and cash equivalents | 157,928 | 125,098 | $ 76,383 | $ 86,011 | ||
Other assets | 206,133 | 133,312 | ||||
Total assets | 9,293,901 | 8,881,017 | ||||
Secured notes payable | 789,450 | 809,818 | ||||
Total liabilities | 5,000,980 | 4,587,053 | ||||
Alexandria Real Estate Equities, Inc.’s share of equity | 3,910,078 | 3,975,087 | ||||
Noncontrolling interests’ share of equity | 373,831 | 304,659 | ||||
Total liabilities, noncontrolling interests, and equity | 9,293,901 | 8,881,017 | ||||
Primary Beneficiary | ||||||
Real Estate Properties [Line Items] | ||||||
Investments in real estate | 802,266 | 608,474 | ||||
Cash and cash equivalents | 37,566 | 2,060 | ||||
Other assets | 40,863 | 37,633 | ||||
Total assets | 880,695 | 648,167 | ||||
Secured notes payable | 0 | 0 | ||||
Other liabilities | 75,865 | 38,666 | ||||
Total liabilities | 75,865 | 38,666 | ||||
Alexandria Real Estate Equities, Inc.’s share of equity | 432,735 | 307,220 | ||||
Noncontrolling interests’ share of equity | 372,095 | 302,281 | ||||
Total liabilities, noncontrolling interests, and equity | $ 880,695 | $ 648,167 | ||||
ACLS at Campus Pointe [Member] | 10300 Campus Point Drive [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Area of Real Estate Property | ft² | 449,759 | |||||
ACLS at Campus Pointe [Member] | 10290 Campus Point Drive [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Area of Real Estate Property | ft² | 304,326 | |||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ 68,600 | |||||
Noncontrolling Interest - Historical Cost Basis | 68,000 | |||||
ACLS at Campus Pointe [Member] | 10290 Campus Point Drive [Member] | Additional Paid-In Capital | ||||||
Real Estate Properties [Line Items] | ||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ (537) | |||||
Scenario, Forecast [Member] | ACLS at Campus Pointe [Member] | 10300 Campus Point Drive [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from Sale of Real Estate | $ 150,000 | |||||
Scenario, Forecast [Member] | ACLS at Campus Pointe [Member] | 10290 Campus Point Drive [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Proceeds from Sale of Real Estate | $ 37,700 |
Investments in real estate Acqu
Investments in real estate Acquisition (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2016USD ($)ft² | Sep. 30, 2016USD ($)ft² | Jun. 30, 2016USD ($)ft² | |
Real Estate [Line Items] | |||
Long-term Debt | $ | $ 4,329,094 | ||
Effective rate (as a percent) | 3.49% | ||
One Kendall Square [Member] | |||
Real Estate [Line Items] | |||
Area of Real Estate Property | ft² | 644,771 | ||
Area of Land | ft² | 172,500 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ | $ 725,000 | ||
Long-term Debt | $ | $ 203,000 | ||
Effective rate (as a percent) | 4.82% | ||
88 Bluxome Street [Member] | |||
Real Estate [Line Items] | |||
Area of Real Estate Property | ft² | 1,070,925 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ | $ 140,000 | ||
Subsequent Event | Torrey Ridge Science Center [Member] | |||
Real Estate [Line Items] | |||
Area of Real Estate Property | ft² | 294,993 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ | $ 182,500 | ||
Real estate occupancy percentage | 87.10% | ||
Initial Cash Yield Percentage | 6.80% | ||
Area of Real Estate Property for Conversion | ft² | 75,953 |
Investments in real estate Disp
Investments in real estate Disposition (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)ft² | Jun. 30, 2016USD ($)aft² | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | |
Real Estate [Line Items] | |||||
Gain on sales of real estate – land parcels | $ 90,000 | $ 0 | $ 90,000 | $ 0 | |
Impairment of real estate | 8,114,000 | $ 0 | $ 193,237,000 | $ 14,510,000 | |
Number 16020 Industrial Drive [Member] | |||||
Real Estate [Line Items] | |||||
Area of Real Estate Property | ft² | 71,000 | ||||
Sales of Real Estate | $ 6,400,000 | ||||
Gain on sales of real estate – land parcels | 0 | ||||
Number 14 Firstfield Road [Member] | |||||
Real Estate [Line Items] | |||||
Sales of Real Estate | $ 3,500,000 | ||||
Area of Land | a | 4.6 | ||||
Impairment of real estate | $ 863,000 | ||||
Locust/North Hill [Member] | |||||
Real Estate [Line Items] | |||||
Sales of Real Estate | $ 5,200,000 | ||||
Area of Land | ft² | 1.3 | 1.3 |
Investments in real estate Land
Investments in real estate Land undergoing predevelopment and future development (Details) - North America $ in Thousands | Sep. 30, 2016USD ($)ft² | Dec. 31, 2015USD ($) |
Real Estate Properties [Line Items] | ||
Land available for development | $ | $ 238,728 | $ 206,939 |
Future Value-creation Projects [Member] | ||
Real Estate Properties [Line Items] | ||
Square Footage of Real Estate Property, Future Development | ft² | 5,678,707 |
Investment in unconsolidated 48
Investment in unconsolidated real estate joint ventures (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)ft²Extension_Option | |
Construction Loans | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Debt Instrument, Maturity Date | Apr. 1, 2017 |
London Interbank Offered Rate (LIBOR) [Member] | Construction Loans | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Applicable margin (as a percent) | 3.75% |
Greater Boston market | Longwood [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Area of Real Estate Property | ft² | 413,799 |
Expected Total Joint Venture Development Cost | $ 350,000 |
Rentable Square Footage of Real Estate Property, Operating Properties | ft² | 313,407 |
Real estate occupancy percentage | 76.00% |
Equity Method Investments | $ 50,200 |
Greater Boston market | Construction Loans | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Debt Instrument, Maturity Date | Apr. 1, 2017 |
Stated interest rate (as a percent) | 5.25% |
Greater Boston market | Construction Loan, Aggregate Commitments | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Long-term Construction Loan | $ 213,200 |
Long-term debt at fixed interest rate | 175,241 |
Long-term debt at variable interest rate | 37,959 |
Greater Boston market | Construction Loan, Outstanding Balance | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Long-term Construction Loan | 181,307 |
Unamortized debt issuance expense | 235 |
Long-term debt at fixed interest rate | 173,226 |
Long-term debt at variable interest rate | 8,081 |
Long-term Construction Loan, Net of Unamortized Deferred Financing Costs | $ 181,072 |
Greater Boston market | Secured Debt from Bank Maturing on 1 April 2017 [Member] | Longwood [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Debt Instrument, Number of One-Year Maturity Date Extension Option | Extension_Option | 2 |
Debt Instrument, Extended Maturity Period | 1 year |
Greater Boston market | Construction Loan, Remaining Commitments [Member] | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Long-term Construction Loan | $ 31,893 |
Long-term Debt, Percentage Bearing Fixed Interest, Remaining Commitments | 2,015 |
Long-term Debt, Percentage Bearing Variable Interest, Remaining Commitments | $ 29,878 |
San Francisco Bay Area | 1455/1515 Third Street | |
Schedule of Equity Method Investments [Line Items] | |
Area of Real Estate Property | ft² | 422,980 |
Real estate occupancy percentage | 100.00% |
Length of Lease | 15 years |
Equity interest percentage (in percent) | 51.00% |
Equity Method Investments | $ 83,400 |
Equity Method Investee | Greater Boston market | Longwood [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest percentage (in percent) | 27.50% |
Uber Technologies, Inc. | San Francisco Bay Area | 1455/1515 Third Street | |
Schedule of Equity Method Investments [Line Items] | |
Equity interest percentage (in percent) | 49.00% |
Minimum | Construction Loans | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Stated interest rate (as a percent) | 5.25% |
Maximum | London Interbank Offered Rate (LIBOR) [Member] | Construction Loans | Longwood [Member] | Secured Debt from Bank Maturing on 1 April 2017 [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Applicable margin (as a percent) | 3.50% |
Investments Summary of Investme
Investments Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments [Abstract] | ||
Available-for-sale equity securities, cost basis | $ 40,090 | $ 20,022 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Gain, before Tax | 33,182 | 118,392 |
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | (4,265) | (793) |
Available-for-sale equity securities, at fair value | 69,007 | 137,621 |
Investments accounted for under cost method | 251,982 | 215,844 |
Investments | $ 320,989 | $ 353,465 |
Investments Investment Income (
Investments Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments [Abstract] | ||||
Gain on Sale of Investments | $ 8,115 | $ 8,658 | $ 28,721 | $ 22,368 |
Investment losses | (3,849) | (3,280) | (10,670) | (11,157) |
Investment income | $ 4,266 | $ 5,378 | $ 18,051 | $ 11,211 |
Other assets (Details)
Other assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Acquired below-market ground leases | $ 12,970 | $ 13,142 |
Acquired in-place leases | 24,616 | 27,997 |
Deferred compensation plan | 10,667 | 8,489 |
Deferred financing costs – $1.65 billion unsecured senior line of credit | 15,168 | 11,909 |
Deposits | 75,474 | 3,713 |
Furniture, fixtures, and equipment, net | 13,379 | 13,682 |
Interest rate hedge assets | 180 | 596 |
Notes receivable | 6,876 | 16,630 |
Prepaid expenses | 13,945 | 17,651 |
Real Estate - Corporate Operations | 18,612 | 0 |
Other assets | 14,246 | 19,503 |
Total | $ 206,133 | $ 133,312 |
Fair value measurements Assets
Fair value measurements Assets and Liabilities on Recurring Basis (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)transfer | Dec. 31, 2015USD ($) | |
Assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy | ||
Transfers in Fair Value Hierarchy | transfer | 0 | |
Assets: | ||
Available-for-sale equity securities | $ 69,007 | $ 137,621 |
Interest rate hedge assets | 180 | 596 |
Fair value measured on recurring basis | Quoted Prices in Active Markets for Identical Assets | ||
Assets: | ||
Available-for-sale equity securities | 69,007 | 137,621 |
Interest rate hedge assets | 0 | 0 |
Liabilities: | ||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 |
Fair value measured on recurring basis | Significant Other Observable Inputs | ||
Assets: | ||
Available-for-sale equity securities | 0 | 0 |
Interest rate hedge assets | 180 | 596 |
Liabilities: | ||
Interest Rate Derivative Liabilities, at Fair Value | 7,705 | 4,314 |
Fair value measured on recurring basis | Significant Unobservable Inputs | ||
Assets: | ||
Available-for-sale equity securities | 0 | 0 |
Interest rate hedge assets | 0 | 0 |
Liabilities: | ||
Interest Rate Derivative Liabilities, at Fair Value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Available-for-sale equity securities | 69,007 | 137,621 |
Interest rate hedge assets | 180 | 596 |
Liabilities: | ||
Interest Rate Derivative Liabilities, at Fair Value | 7,705 | 4,314 |
Estimate of Fair Value Measurement [Member] | Fair value measured on recurring basis | ||
Assets: | ||
Available-for-sale equity securities | 69,007 | 137,621 |
Interest rate hedge assets | 180 | 596 |
Liabilities: | ||
Interest Rate Derivative Liabilities, at Fair Value | 7,705 | 4,314 |
Reported Value Measurement [Member] | ||
Assets: | ||
Available-for-sale equity securities | 69,007 | 137,621 |
Interest rate hedge assets | 180 | 596 |
Liabilities: | ||
Interest Rate Derivative Liabilities, at Fair Value | $ 7,705 | $ 4,314 |
Fair value measurements Book an
Fair value measurements Book and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of marketable securities, secured notes payable, unsecured senior line of credit, unsecured term loans, and unsecured senior convertible notes | ||
Available-for-sale equity securities | $ 69,007 | $ 137,621 |
Interest rate hedge assets | 180 | 596 |
Secured notes payable | 789,450 | 809,818 |
Unsecured senior notes payable | 2,377,482 | 2,030,631 |
Long-term Line of Credit | 416,000 | 151,000 |
Unsecured senior bank term loans | 746,162 | 944,243 |
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 equity securities | 69,007 | 137,621 |
Interest rate hedge assets | 180 | 596 |
Interest Rate Derivative Liabilities, at Fair Value | 7,705 | 4,314 |
Secured notes payable | 789,450 | 809,818 |
Unsecured senior notes payable | 2,377,482 | 2,030,631 |
Long-term Line of Credit | 416,000 | 151,000 |
Unsecured senior bank term loans | 746,162 | 944,243 |
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 equity securities | 69,007 | 137,621 |
Interest rate hedge assets | 180 | 596 |
Interest Rate Derivative Liabilities, at Fair Value | 7,705 | 4,314 |
Secured notes payable | 802,722 | 832,342 |
Senior Notes Fair Value Disclosure | 2,551,835 | 2,059,855 |
Unsecured senior line of credit | 415,962 | 151,450 |
Unsecured Bank Term Loans Fair Value Disclosure | $ 750,746 | $ 951,098 |
Secured and unsecured senior 54
Secured and unsecured senior debt Narratives (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Debt Instrument [Line Items] | |
Effective rate (as a percent) | 3.49% |
Long-term Debt, Gross | $ 4,361,113 |
Unsecured Bank Term Loan 2021 [Member] | |
Debt Instrument [Line Items] | |
Effective rate (as a percent) | 2.18% |
Long-term Debt, Gross | $ 350,000 |
Construction Loans | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 488,689 |
Secured and unsecured senior 55
Secured and unsecured senior debt Summary of secured and unsecured debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | |
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 4,361,113 | $ 4,361,113 | |
Long-term Debt, Percentage Bearing Variable Interest, Amount, Net | 586,174 | 586,174 | |
Total Consolidated | $ 4,329,094 | $ 4,329,094 | |
Percentage of Total | 100.00% | 100.00% | |
Weighted-Average Interest Rate at End of Period (as a percent) | 3.49% | 3.49% | |
Weighted Average Remaining Terms (in years) | 5 years 7 months 6 days | ||
Long-term Debt | $ 3,742,920 | $ 3,742,920 | |
Percentage of fixed rate/hedged total debt | 86.00% | 86.00% | |
Percentage of unhedged floating rate total debt | 14.00% | 14.00% | |
Construction Loans | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 488,689 | $ 488,689 | |
Secured notes payable | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 795,113 | 795,113 | |
Long-term Debt, Percentage Bearing Variable Interest, Amount, Net | 370,174 | 370,174 | |
Total Consolidated | $ 789,450 | $ 789,450 | |
Percentage of Total | 18.20% | 18.20% | |
Weighted-Average Interest Rate at End of Period (as a percent) | 3.34% | 3.34% | |
Weighted Average Remaining Terms (in years) | 2 years 7 months 6 days | ||
Long-term Debt | $ 419,276 | $ 419,276 | |
Stated interest rate (as a percent) | 3.32% | 3.32% | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Percentage Bearing Variable Interest, Amount, Net | $ 0 | $ 0 | |
Total Consolidated | $ 2,377,482 | $ 2,377,482 | |
Percentage of Total | 55.00% | 55.00% | |
Weighted-Average Interest Rate at End of Period (as a percent) | 4.14% | 4.14% | |
Weighted Average Remaining Terms (in years) | 7 years 6 months | ||
Long-term Debt | $ 2,377,482 | $ 2,377,482 | |
Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Annual facility fee (as a percent) | 0.20% | ||
Outstanding Balance | 416,000 | $ 416,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Amount, Net | 216,000 | 216,000 | |
Total Consolidated | $ 416,000 | $ 416,000 | |
Percentage of Total | 9.60% | 9.60% | |
Weighted-Average Interest Rate at End of Period (as a percent) | 1.52% | 1.52% | |
Weighted Average Remaining Terms (in years) | 5 years 1 month 6 days | ||
Long-term Debt | $ 200,000 | $ 200,000 | |
2019 Unsecured Senior Bank Term Loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 400,000 | 400,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Amount, Net | 0 | 0 | |
Total Consolidated | $ 398,355 | $ 398,355 | |
Percentage of Total | 9.20% | 9.20% | |
Weighted-Average Interest Rate at End of Period (as a percent) | 3.03% | 3.03% | |
Weighted Average Remaining Terms (in years) | 2 years 3 months 18 days | ||
Long-term Debt | $ 398,355 | $ 398,355 | |
Unsecured Bank Term Loan 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 350,000 | 350,000 | |
Long-term Debt, Percentage Bearing Variable Interest, Amount, Net | 0 | 0 | |
Total Consolidated | $ 347,807 | $ 347,807 | |
Percentage of Total | 8.00% | 8.00% | |
Weighted-Average Interest Rate at End of Period (as a percent) | 2.18% | 2.18% | |
Weighted Average Remaining Terms (in years) | 4 years 3 months 18 days | ||
Long-term Debt | $ 347,807 | $ 347,807 | |
2019 Unsecured Senior Bank Term Loan | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 400,000 | $ 600,000 | 400,000 |
Greater Boston market | Secured Debt Maturing on 23 August 2017 [Member] | Construction Loans | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | 210,464 | 210,464 | |
Greater Boston market | Secured Debt Maturing April 20, 2019 [Member] | Construction Loans | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 64,256 | $ 64,256 | |
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | LIBOR | |
Applicable margin (as a percent) | 1.00% | 1.10% | |
London Interbank Offered Rate (LIBOR) [Member] | 2019 Unsecured Senior Bank Term Loan | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Applicable margin (as a percent) | 1.20% | ||
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Bank Term Loan 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Applicable margin (as a percent) | 1.10% | ||
London Interbank Offered Rate (LIBOR) [Member] | San Francisco Bay Area | Secured Debt from Bank Maturing on 1 July 2016 [Member] | Construction Loans | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Applicable margin (as a percent) | 1.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Greater Boston market | Secured Debt Maturing on 23 August 2017 [Member] | Construction Loans | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Applicable margin (as a percent) | 1.35% | ||
London Interbank Offered Rate (LIBOR) [Member] | Greater Boston market | Secured Debt Maturing on 26 January 2019 [Member] | Construction Loans | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Applicable margin (as a percent) | 1.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Greater Boston market | Secured Debt Maturing April 20, 2019 [Member] | Construction Loans | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||
Applicable margin (as a percent) | 2.00% |
Secured and unsecured senior 56
Secured and unsecured senior debt Detail of secured and unsecured debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Document Fiscal Year Focus | 2,016 | |||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (4,329,094) | $ (4,329,094) | ||
Effective rate (as a percent) | 3.49% | 3.49% | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ (807) | $ (807) | ||
Due Next Year | 289,857 | 289,857 | ||
Due Year Three | 4,706 | 4,706 | ||
Due Year Four | 683,585 | 683,585 | ||
Due Year Five | 507,712 | 507,712 | ||
Thereafter | 2,874,446 | 2,874,446 | ||
Outstanding Balance | 4,361,113 | 4,361,113 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (32,019) | (32,019) | ||
Repayments of Secured Debt | 234,096 | $ 12,217 | ||
Secured Debt Maturing April 20, 2019 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (60,846) | $ (60,846) | ||
Effective rate (as a percent) | 2.79% | 2.79% | ||
Debt Instrument, Maturity Date | Apr. 20, 2019 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 64,256 | 64,256 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 64,256 | 64,256 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (3,410) | (3,410) | ||
Construction Loans | ||||
Future principal payments due on secured and unsecured debt | ||||
Outstanding Balance | 488,689 | 488,689 | ||
Secured notes payable | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (789,450) | $ (789,450) | ||
Stated interest rate (as a percent) | 3.32% | 3.32% | ||
Effective rate (as a percent) | 3.34% | 3.34% | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ (807) | $ (807) | ||
Due Next Year | 289,857 | 289,857 | ||
Due Year Three | 4,706 | 4,706 | ||
Due Year Four | 283,585 | 283,585 | ||
Due Year Five | 107,712 | 107,712 | ||
Thereafter | 108,446 | 108,446 | ||
Outstanding Balance | 795,113 | 795,113 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (5,663) | (5,663) | ||
Secured Debt from Bank Maturing on 20 January 2017 | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (75,914) | $ (75,914) | ||
Stated interest rate (as a percent) | 2.44% | 2.44% | ||
Effective rate (as a percent) | 2.81% | 2.81% | ||
Debt Instrument, Maturity Date | Jan. 20, 2017 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 76,000 | 76,000 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 76,000 | 76,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (86) | (86) | ||
Secured Debt Maturing on 23 August 2017 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (209,196) | $ (209,196) | ||
Effective rate (as a percent) | 2.47% | 2.47% | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 210,464 | 210,464 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 210,464 | 210,464 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (1,268) | (1,268) | ||
Secured Debt Maturing January 28, 2019 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (211,188) | $ (211,188) | ||
Effective rate (as a percent) | 1.85% | 1.85% | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 213,969 | 213,969 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 213,969 | 213,969 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (2,781) | (2,781) | ||
Secured Debt Other Maturing 1 April 2020 | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (109,571) | $ (109,571) | ||
Stated interest rate (as a percent) | 7.75% | 7.75% | ||
Effective rate (as a percent) | 8.10% | 8.10% | ||
Debt Instrument, Maturity Date | Apr. 1, 2020 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ (437) | $ (437) | ||
Due Next Year | 1,833 | 1,833 | ||
Due Year Three | 1,979 | 1,979 | ||
Due Year Four | 2,140 | 2,140 | ||
Due Year Five | 104,351 | 104,351 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 110,740 | 110,740 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (1,169) | (1,169) | ||
Secured Debt Maturing on January 2023 | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (36,479) | $ (36,479) | ||
Stated interest rate (as a percent) | 4.66% | 4.66% | ||
Effective rate (as a percent) | 4.99% | 4.99% | ||
Debt Instrument, Maturity Date | Jan. 1, 2023 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ (370) | $ (370) | ||
Due Next Year | 1,540 | 1,540 | ||
Due Year Three | 1,614 | 1,614 | ||
Due Year Four | 1,692 | 1,692 | ||
Due Year Five | 1,770 | 1,770 | ||
Thereafter | 29,905 | 29,905 | ||
Outstanding Balance | 36,891 | 36,891 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (412) | (412) | ||
Secured Notes Payable Maturing March 10, 2023 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (85,463) | $ (85,463) | ||
Stated interest rate (as a percent) | 3.93% | 3.93% | ||
Effective rate (as a percent) | 3.18% | 3.18% | ||
Debt Instrument, Maturity Date | Mar. 10, 2023 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 1,091 | 1,091 | ||
Due Year Four | 1,505 | 1,505 | ||
Due Year Five | 1,566 | 1,566 | ||
Thereafter | 77,838 | 77,838 | ||
Outstanding Balance | 82,000 | 82,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | 3,463 | 3,463 | ||
Secured Notes Payable Maturing July 1, 2036 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (793) | $ (793) | ||
Stated interest rate (as a percent) | 6.50% | 6.50% | ||
Effective rate (as a percent) | 6.76% | 6.76% | ||
Debt Instrument, Maturity Date | Jul. 1, 2036 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 20 | 20 | ||
Due Year Three | 22 | 22 | ||
Due Year Four | 23 | 23 | ||
Due Year Five | 25 | 25 | ||
Thereafter | 703 | 703 | ||
Outstanding Balance | 793 | 793 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | 0 | 0 | ||
Unsecured Debt | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (3,539,644) | $ (3,539,644) | ||
Effective rate (as a percent) | 3.52% | 3.52% | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 400,000 | 400,000 | ||
Due Year Five | 400,000 | 400,000 | ||
Thereafter | 2,766,000 | 2,766,000 | ||
Outstanding Balance | 3,566,000 | 3,566,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (26,356) | (26,356) | ||
Line of Credit [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (416,000) | $ (416,000) | ||
Effective rate (as a percent) | 1.52% | 1.52% | ||
Debt Instrument, Maturity Date | Oct. 29, 2021 | Jan. 3, 2019 | Oct. 29, 2021 | |
Annual facility fee (as a percent) | 0.20% | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 416,000 | 416,000 | ||
Outstanding Balance | 416,000 | 416,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | 0 | 0 | ||
2019 Unsecured Senior Bank Term Loan | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (398,355) | $ (398,355) | ||
Effective rate (as a percent) | 3.03% | 3.03% | ||
Debt Instrument, Maturity Date | Jan. 3, 2019 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 400,000 | 400,000 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 400,000 | 400,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (1,645) | (1,645) | ||
Unsecured Bank Term Loan 2021 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (347,807) | $ (347,807) | ||
Effective rate (as a percent) | 2.18% | 2.18% | ||
Debt Instrument, Maturity Date | Jan. 15, 2021 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 350,000 | 350,000 | ||
Outstanding Balance | 350,000 | 350,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (2,193) | (2,193) | ||
Unsecured Senior Notes Due in January 2020 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (397,399) | $ (397,399) | ||
Stated interest rate (as a percent) | 2.75% | 2.75% | ||
Effective rate (as a percent) | 2.95% | 2.95% | ||
Debt Instrument, Maturity Date | Jan. 15, 2020 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 400,000 | 400,000 | ||
Thereafter | 0 | 0 | ||
Outstanding Balance | 400,000 | 400,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (2,601) | (2,601) | ||
4.60% unsecured senior notes payable | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (546,437) | $ (546,437) | ||
Stated interest rate (as a percent) | 4.60% | 4.60% | ||
Effective rate (as a percent) | 4.72% | 4.72% | ||
Debt Instrument, Maturity Date | Apr. 1, 2022 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 550,000 | 550,000 | ||
Outstanding Balance | 550,000 | 550,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (3,563) | (3,563) | ||
3.90% unsecured senior notes payable | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (496,046) | $ (496,046) | ||
Stated interest rate (as a percent) | 3.90% | 3.90% | ||
Effective rate (as a percent) | 4.02% | 4.02% | ||
Debt Instrument, Maturity Date | Jun. 15, 2023 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 500,000 | 500,000 | ||
Outstanding Balance | 500,000 | 500,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (3,954) | (3,954) | ||
4.30% Unsecured Senior Notes Payable [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (295,545) | $ (295,545) | ||
Stated interest rate (as a percent) | 4.30% | 4.30% | ||
Effective rate (as a percent) | 4.46% | 4.46% | ||
Debt Instrument, Maturity Date | Jan. 15, 2026 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 300,000 | 300,000 | ||
Outstanding Balance | 300,000 | 300,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (4,455) | (4,455) | ||
3.95% Unsecured Senior Notes Payable [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (344,886) | $ (344,886) | ||
Stated interest rate (as a percent) | 3.95% | 3.95% | 3.95% | |
Effective rate (as a percent) | 4.11% | 4.11% | ||
Debt Instrument, Maturity Date | Jan. 15, 2027 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 350,000 | 350,000 | ||
Outstanding Balance | 350,000 | $ 350,000 | 350,000 | |
Unamortized (Deferred Financing Cost), (Discount)/Premium | (5,114) | (5,114) | ||
Unsecured Senior Notes Due in July 2029 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | $ (297,169) | $ (297,169) | ||
Stated interest rate (as a percent) | 4.50% | 4.50% | ||
Effective rate (as a percent) | 4.58% | 4.58% | ||
Debt Instrument, Maturity Date | Jul. 30, 2029 | |||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | $ 0 | $ 0 | ||
Due Next Year | 0 | 0 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 0 | 0 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 300,000 | 300,000 | ||
Outstanding Balance | 300,000 | 300,000 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (2,831) | (2,831) | ||
Balloon Payments | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | (4,335,156) | (4,335,156) | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | 0 | 0 | ||
Due Next Year | 286,464 | 286,464 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 678,226 | 678,226 | ||
Due Year Five | 503,979 | 503,979 | ||
Thereafter | 2,866,487 | 2,866,487 | ||
Outstanding Balance | 4,335,156 | 4,335,156 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | 0 | 0 | ||
Principal Amortization | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | (6,062) | (6,062) | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | (807) | (807) | ||
Due Next Year | 3,393 | 3,393 | ||
Due Year Three | 4,706 | 4,706 | ||
Due Year Four | 5,359 | 5,359 | ||
Due Year Five | 3,733 | 3,733 | ||
Thereafter | 7,959 | 7,959 | ||
Outstanding Balance | 25,957 | 25,957 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (32,019) | (32,019) | ||
Fixed Rate/Hedged Variable-rate Debt | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | (3,742,920) | (3,742,920) | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | (807) | (807) | ||
Due Next Year | 153,393 | 153,393 | ||
Due Year Three | 4,706 | 4,706 | ||
Due Year Four | 445,359 | 445,359 | ||
Due Year Five | 507,712 | 507,712 | ||
Thereafter | 2,658,446 | 2,658,446 | ||
Outstanding Balance | 3,770,423 | 3,770,423 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | (27,503) | (27,503) | ||
Unhedged Variable-rate Debt | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Total Consolidated | (586,174) | (586,174) | ||
Future principal payments due on secured and unsecured debt | ||||
Due Current Year | 0 | 0 | ||
Due Next Year | 136,464 | 136,464 | ||
Due Year Three | 0 | 0 | ||
Due Year Four | 238,226 | 238,226 | ||
Due Year Five | 0 | 0 | ||
Thereafter | 216,000 | 216,000 | ||
Outstanding Balance | 590,690 | 590,690 | ||
Unamortized (Deferred Financing Cost), (Discount)/Premium | $ (4,516) | $ (4,516) | ||
London Interbank Offered Rate (LIBOR) [Member] | Line of Credit [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | LIBOR | ||
Applicable margin (as a percent) | 1.00% | 1.10% | ||
London Interbank Offered Rate (LIBOR) [Member] | 2019 Unsecured Senior Bank Term Loan | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
Applicable margin (as a percent) | 1.20% | |||
London Interbank Offered Rate (LIBOR) [Member] | Unsecured Bank Term Loan 2021 [Member] | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
Applicable margin (as a percent) | 1.10% | |||
San Francisco Bay Area | Secured Debt from Bank Maturing on 1 July 2016 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Construction Loans | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
Applicable margin (as a percent) | 1.50% | |||
Greater Boston market | Secured Debt Maturing on 26 January 2019 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Construction Loans | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
Applicable margin (as a percent) | 1.50% | |||
Greater Boston market | Secured Debt Maturing January 28, 2019 [Member] | Construction Loans | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Maturity Date | Jan. 28, 2019 | |||
Future principal payments due on secured and unsecured debt | ||||
Outstanding Balance | $ 213,969 | $ 213,969 | ||
Greater Boston market | Secured Debt Maturing January 28, 2019 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Construction Loans | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Applicable margin (as a percent) | 1.50% | |||
Greater Boston market | Secured Debt Maturing on 23 August 2017 [Member] | Construction Loans | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Maturity Date | Aug. 23, 2017 | |||
Future principal payments due on secured and unsecured debt | ||||
Outstanding Balance | $ 210,464 | $ 210,464 | ||
Greater Boston market | Secured Debt Maturing on 23 August 2017 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Construction Loans | ||||
Summary of fixed rate/hedged and floating rate debt | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||
Applicable margin (as a percent) | 1.35% |
Secured and unsecured senior 57
Secured and unsecured senior debt Secured Note Payable (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 4,361,113 | ||
Proceeds from issuance of unsecured senior notes payable | 348,604 | $ 0 | |
3.95% Unsecured Senior Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 350,000 | $ 350,000 | |
Stated interest rate (as a percent) | 3.95% | 3.95% | |
Proceeds from issuance of unsecured senior notes payable | $ 344,700 |
Secured and unsecured senior 58
Secured and unsecured senior debt Schedule of interest expense incurred (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest expense incurred | ||||
Gross interest | $ 40,753 | $ 36,115 | $ 116,520 | $ 105,427 |
Capitalized interest | (14,903) | (8,436) | (40,790) | (27,844) |
Interest | $ 25,850 | $ 27,679 | $ 75,730 | $ 77,583 |
Secured and unsecured senior 59
Secured and unsecured senior debt Repayment of secured note payable (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($)note_payable | Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Repayments of Secured Debt | $ 234,096 | $ 12,217 |
Effective rate (as a percent) | 3.49% | |
Secured notes payable | ||
Debt Instrument [Line Items] | ||
Effective rate (as a percent) | 3.34% | |
Five Secured Notes Payable | Secured notes payable | ||
Debt Instrument [Line Items] | ||
Number of notes payable repaid | note_payable | 5 | |
Repayments of Secured Debt | $ 231,000 | |
Effective rate (as a percent) | 5.29% |
Secured and unsecured senior 60
Secured and unsecured senior debt Schedule of secured construction loans (Details) | 1 Months Ended | 9 Months Ended |
Apr. 30, 2016Extension_Option | Sep. 30, 2016USD ($)Extension_Option | |
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 4,361,113,000 | |
Effective rate (as a percent) | 3.49% | |
Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 210,464,000 | |
Effective rate (as a percent) | 2.47% | |
Construction Loans | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 488,689,000 | |
Remaining Commitment | 415,992,000 | |
Total Aggregate Commitments | 904,681,000 | |
Secured Debt Maturing January 28, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 213,969,000 | |
Effective rate (as a percent) | 1.85% | |
Greater Boston market | Construction Loans | Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Maturity Date | Aug. 23, 2017 | |
Outstanding Balance | $ 210,464,000 | |
Remaining Commitment | 39,936,000 | |
Total Aggregate Commitments | $ 250,400,000 | |
Greater Boston market | Construction Loans | Secured Debt Maturing January 28, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Extended Maturity Period | 1 year | |
Maturity Date | Jan. 28, 2019 | |
Outstanding Balance | $ 213,969,000 | |
Remaining Commitment | 136,031,000 | |
Total Aggregate Commitments | $ 350,000,000 | |
Debt Instrument, Number of One-Year Maturity Date Extension Option | Extension_Option | 2 | |
Greater Boston market | Construction Loans | Secured Debt Maturing April 20, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Outstanding Balance | $ 64,256,000 | |
Remaining Commitment | 240,025,000 | |
Total Aggregate Commitments | $ 304,281,000 | |
London Interbank Offered Rate (LIBOR) [Member] | Greater Boston market | Construction Loans | Secured Debt Maturing on 23 August 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin (as a percent) | 1.35% | |
London Interbank Offered Rate (LIBOR) [Member] | Greater Boston market | Construction Loans | Secured Debt Maturing January 28, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin (as a percent) | 1.50% | |
London Interbank Offered Rate (LIBOR) [Member] | Greater Boston market | Construction Loans | Secured Debt Maturing April 20, 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Extended Maturity Period | 1 year | |
Applicable margin (as a percent) | 2.00% | |
Debt Instrument, Number of One-Year Maturity Date Extension Option | Extension_Option | 2 |
Secured and unsecured senior 61
Secured and unsecured senior debt Unsecured Senior Line of Credit and Bank Term Loans Amendment (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($)Extension_Option | Jun. 30, 2016USD ($) | Sep. 30, 2016USD ($)Extension_Option | Sep. 30, 2015USD ($) | |
Unsecured senior line of credit and bank term loans amendment [Line Items] | |||||
Long-term Debt, Gross | $ 4,361,113 | $ 4,361,113 | |||
Proceeds from issuance of unsecured senior notes payable | 348,604 | $ 0 | |||
Unsecured Credit Facility [Member] | |||||
Unsecured senior line of credit and bank term loans amendment [Line Items] | |||||
Extinguishment of Debt, Amount | 2,400 | ||||
2019 Unsecured Senior Bank Term Loan | |||||
Unsecured senior line of credit and bank term loans amendment [Line Items] | |||||
Extinguishment of Debt, Amount | 869 | ||||
Repayments of Debt | 200,000 | ||||
Long-term Debt, Gross | $ 600,000 | 400,000 | $ 600,000 | $ 400,000 | |
3.95% Unsecured Senior Notes Payable [Member] | |||||
Unsecured senior line of credit and bank term loans amendment [Line Items] | |||||
Debt Instrument, Maturity Date | Jan. 15, 2027 | ||||
Long-term Debt, Gross | $ 350,000 | $ 350,000 | $ 350,000 | $ 350,000 | |
Stated interest rate (as a percent) | 3.95% | 3.95% | 3.95% | 3.95% | |
Proceeds from issuance of unsecured senior notes payable | $ 344,700 | ||||
Line of Credit [Member] | |||||
Unsecured senior line of credit and bank term loans amendment [Line Items] | |||||
Line of Credit, Commitments Available for Borrowings | $ 1,650,000 | $ 1,500,000 | |||
Debt Instrument, Maturity Date | Oct. 29, 2021 | Jan. 3, 2019 | Oct. 29, 2021 | ||
Debt Instrument, Number of One-Year Maturity Date Extension Option | Extension_Option | 2 | 2 | |||
Debt Instrument, Extended Maturity Period | 6 months | ||||
Long-term Debt, Gross | $ 416,000 | $ 416,000 |
Interest rate hedge agreement62
Interest rate hedge agreements (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Effective Portion of Interest Rate Cash Flow Hedge in Year Three | $ 600,000,000 | |
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 | 5,200,000 | |
Collateral obligation requirements | 0 | |
Assets Needed for Immediate Settlement, Aggregate Fair Value | 7,500,000 | |
Interest Rate Cap [Member] | ||
Effective Portion of Interest Rate Cash Flow Hedge in Year Three | $ 150,000,000 | |
Interest Pay Rate (as a percent) | 2.00% |
Interest rate hedge agreement63
Interest rate hedge agreements Outstanding interest rate swap (Details) $ in Thousands | Sep. 30, 2016USD ($)contract | Dec. 31, 2015USD ($) |
Interest rate hedge agreements | ||
Fair Values | $ (7,525) | |
Notional Amount in Effect as of 9/30/16 | 1,140,000 | |
Notional Amount in Effect as of 12/31/16 | 1,155,000 | |
Notional Amount in Effect as of 12/31/17 | 1,026,000 | |
Notional Amount in Effect as of 12/31/18 | 600,000 | |
Interest rate hedge assets | $ 180 | $ 596 |
Interest Rate Hedge .57 Percent Transaction Date September 2015 [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | contract | 2 | |
Interest Pay Rate (as a percent) | 0.57% | |
Fair Values | $ 18 | |
Notional Amount in Effect as of 9/30/16 | 100,000 | |
Notional Amount in Effect as of 12/31/16 | 100,000 | |
Notional Amount in Effect as of 12/31/17 | 0 | |
Notional Amount in Effect as of 12/31/18 | $ 0 | |
Interest Rate Hedge 1.15 Percent Transaction Date March 2016 [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | contract | 11 | |
Interest Pay Rate (as a percent) | 1.15% | |
Fair Values | $ (2,691) | |
Notional Amount in Effect as of 9/30/16 | 1,000,000 | |
Notional Amount in Effect as of 12/31/16 | 1,000,000 | |
Notional Amount in Effect as of 12/31/17 | 0 | |
Notional Amount in Effect as of 12/31/18 | $ 0 | |
Interest Rate Hedge 1.31 Percent Transaction Date March 2017 [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | contract | 15 | |
Interest Pay Rate (as a percent) | 1.31% | |
Fair Values | $ (4,592) | |
Notional Amount in Effect as of 9/30/16 | 0 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Notional Amount in Effect as of 12/31/17 | 900,000 | |
Notional Amount in Effect as of 12/31/18 | $ 0 | |
Interest Rate Hedge 1.06 Percent Transaction Date March 2018 [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | contract | 6 | |
Interest Pay Rate (as a percent) | 1.01% | |
Fair Values | $ (374) | |
Notional Amount in Effect as of 9/30/16 | 0 | |
Notional Amount in Effect as of 12/31/16 | 0 | |
Notional Amount in Effect as of 12/31/17 | 0 | |
Notional Amount in Effect as of 12/31/18 | $ 450,000 | |
Interest Rate Cap [Member] | ||
Interest rate hedge agreements | ||
Number of Contracts | contract | 2 | |
Interest Pay Rate (as a percent) | 2.00% | |
Fair Values | $ 114 | |
Notional Amount in Effect as of 9/30/16 | 40,000 | |
Notional Amount in Effect as of 12/31/16 | 55,000 | |
Notional Amount in Effect as of 12/31/17 | 126,000 | |
Notional Amount in Effect as of 12/31/18 | $ 150,000 |
Accounts payable, accrued exp64
Accounts payable, accrued expenses, and tenant security deposits (Details) $ in Thousands, ft² in Millions | Apr. 01, 2016USD ($) | Apr. 01, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Accounts payable and accrued expenses | $ 269,915 | $ 239,838 | ||||
Acquired below market leases | 22,940 | 26,018 | ||||
Asset Retirement Obligation | 3,636 | 5,777 | ||||
Deferred Rent Liability | 34,783 | 27,664 | ||||
Derivative Liability | 7,705 | 4,314 | ||||
Prepaid Rent and Tenant Security Deposits | 218,309 | 211,605 | ||||
Other Accounts Payable and Accrued Liabilities | 47,893 | 74,140 | ||||
Accounts Payable and Accrued Liabilities | 605,181 | $ 589,356 | ||||
Payable for purchase of noncontrolling interest | $ 0 | $ 51,887 | ||||
Alexandria Technology Square [Member] | ||||||
Payable for purchase of noncontrolling interest | $ 54,000 | $ 54,300 | $ 108,300 | |||
Alexandria Technology Square [Member] | ||||||
Area of Real Estate Property | ft² | 1.2 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Class of Stock [Line Items] | ||||
Document Fiscal Year Focus | 2,016 | |||
Proceeds from the issuance of common stock | $ 367,802 | $ 5,052 | ||
Income from continuing operations | $ 28,469 | $ 39,699 | (69,681) | 103,180 |
Gain on sales of real estate – land parcels | 90 | 0 | 90 | 0 |
Net income attributable to noncontrolling interests | (4,084) | (170) | (11,614) | (925) |
Dividends on preferred stock | (5,007) | (6,247) | (16,388) | (18,740) |
Preferred stock redemption charge | (13,095) | 0 | (25,614) | 0 |
Net income attributable to unvested restricted stock awards | (921) | (623) | (2,807) | (1,736) |
Numerator for basic and diluted EPS – net income (loss) from continuing operations attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | 5,452 | 32,659 | (126,014) | 81,779 |
Loss from discontinued operations | 0 | 0 | 0 | (43) |
Numerator for basic and diluted EPS – net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ 5,452 | $ 32,659 | $ (126,014) | $ 81,736 |
Denominator for basic EPS – weighted-average shares of common stock outstanding | 76,651 | 71,500 | 74,526 | 71,426 |
Dilutive effect of forward equity sales agreements | $ 751 | $ 0 | $ 0 | $ 0 |
Denominator for diluted EPS – adjusted – weighted-average shares of common stock outstanding | 77,402 | 71,500 | 74,526 | 71,426 |
Earnings per share attributable to Alexandria Real Estate Equities, Inc.'s common stockholders - basic and diluted: | ||||
Continuing operations (usd per share) | $ 0.07 | $ 0.46 | $ (1.69) | $ 1.14 |
Discontinued operations (usd per share) | 0 | 0 | 0 | 0 |
Earnings per share – basic and diluted (usd per share) | $ 0.07 | $ 0.46 | $ (1.69) | $ 1.14 |
Series D Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Dividend Rate, Percentage | 7.00% |
Stockholders' equity (Details)
Stockholders' equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Oct. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Jul. 31, 2016 | |
Issuances of common stock | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ 68,014 | |||||||
Proceeds from the issuance of common stock | 367,802 | $ 5,052 | ||||||
Dividends declared on common stock | $ 62,400 | $ 183,858 | ||||||
Dividends declared per share of common stock (usd per share) | $ 0.8 | $ 0.77 | $ 2.40 | $ 2.28 | ||||
Preferred stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Number of shares issued and outstanding | 11,700,000 | 11,700,000 | ||||||
Number of "excess stock" authorized (in shares) | 200,000,000 | |||||||
Number of excess stock authorized issued and outstanding (in shares) | 0 | 0 | ||||||
Stock Redeemed or Called During Period, Value | $ 98,633 | |||||||
7.00% Series D cumulative convertible preferred stock | $ 161,792 | $ 237,163 | 161,792 | |||||
Preferred Stock, Accretion of Redemption Discount | 13,095 | $ 0 | $ 25,614 | $ 0 | ||||
7.00% Series D Cumulative Convertible Preferred Stock | ||||||||
Issuances of common stock | ||||||||
Dividends declared on preferred stock | $ 2,800 | |||||||
Dividends declared on preferred stock (dollar per share) | $ 0.4375 | |||||||
Stock Redeemed or Called During Period, Shares | 1,082,900 | 3,014,834 | ||||||
Treasury Stock, Value, Acquired, Cost Method | $ 39,300 | $ 98,600 | ||||||
Treasury Stock Acquired, Average Cost Per Share | $ 36.31 | $ 32.72 | ||||||
Series E Cumulative Redeemable Preferred Stock | ||||||||
Issuances of common stock | ||||||||
Dividends declared on preferred stock | $ 2,100 | |||||||
Dividends declared on preferred stock (dollar per share) | $ 0.403125 | |||||||
At the Market Common Stock Offering Program, Established December 2015 [Member] | ||||||||
Issuances of common stock | ||||||||
Common Stock, Shares Authorized | 450,000,000 | |||||||
Issuances of common stock (shares) | 832,982 | 3,900,000 | ||||||
Proceeds from Shares Sold Gross | $ 75,000 | $ 374,300 | ||||||
Shares Issued, Average Price Per Share | $ 90.04 | $ 94.80 | ||||||
Proceeds from the issuance of common stock | $ 73,400 | $ 367,800 | ||||||
Additional Paid-In Capital | 7.00% Series D Cumulative Convertible Preferred Stock | ||||||||
Issuances of common stock | ||||||||
Stock Redeemed or Called During Period, Value | $ (845) | $ (2,352) | ||||||
Forward Contracts [Member] | ||||||||
Issuances of common stock | ||||||||
Sale of Stock, Price Per Share | $ 101 | |||||||
Proceeds from the issuance of common stock | 724,000 | |||||||
Subsequent Event | 7.00% Series D Cumulative Convertible Preferred Stock | ||||||||
Issuances of common stock | ||||||||
Stock Redeemed or Called During Period, Shares | 1,500,000 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 52,800 | |||||||
Treasury Stock Acquired, Average Cost Per Share | $ 36.07 | |||||||
7.00% Series D cumulative convertible preferred stock | $ 125,200 | |||||||
Subsequent Event | At the Market Common Stock Offering Program, Established October 2016 [Member] | ||||||||
Issuances of common stock | ||||||||
Common Stock, Shares Authorized | 600,000,000 | |||||||
Issuances of common stock (shares) | 1,400,000 | |||||||
Proceeds from Shares Sold Gross | $ 150,000 | |||||||
Shares Issued, Average Price Per Share | $ 104.28 | |||||||
Proceeds from the issuance of common stock | $ 147,700 | |||||||
Total Shares [Member] | Forward Contracts [Member] | ||||||||
Issuances of common stock | ||||||||
Common Stock, Shares Authorized | 7,500,000 | |||||||
Incremental Shares [Member] | Forward Contracts [Member] | ||||||||
Issuances of common stock | ||||||||
Common Stock, Shares Authorized | 975,000 | |||||||
10290 Campus Point Drive [Member] | ACLS at Campus Pointe [Member] | ||||||||
Issuances of common stock | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | 68,600 | |||||||
Noncontrolling Interest - Historical Cost Basis | $ 68,000 | 68,000 | ||||||
10290 Campus Point Drive [Member] | ACLS at Campus Pointe [Member] | Additional Paid-In Capital | ||||||||
Issuances of common stock | ||||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ (537) |
Stockholders' equity Accumulate
Stockholders' equity Accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized holding (losses) gains arising during the period | $ (38,621) | $ (29,832) | $ (70,055) | $ 54,004 |
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2015 | 49,191 | |||
Other comprehensive (loss) income before reclassifications | (76,868) | |||
Amounts reclassified from other comprehensive (income) loss | (4,095) | |||
Total other comprehensive (loss) income | (40,020) | (48,841) | (80,963) | 35,895 |
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | 27 | |||
Net other comprehensive (loss) income | (80,936) | |||
Balance as of September 30, 2016 | (31,745) | (31,745) | ||
Unrealized interest rate hedge gains arising during the period | 2,982 | (5,474) | (7,655) | (9,712) |
Unrealized foreign currency translation (losses) gains arising during the period | (1,322) | (9,294) | 842 | (17,072) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 8,540 | 4,968 | 18,627 | 2,503 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (1,702) | (727) | (3,725) | (1,942) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, Net of Tax | (3,779) | $ 0 | (10,807) | $ (9,236) |
Available-for- Sale Equity Securities | ||||
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2015 | 117,599 | |||
Total other comprehensive (loss) income | (88,682) | |||
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | 0 | |||
Net other comprehensive (loss) income | (88,682) | |||
Balance as of September 30, 2016 | 28,917 | 28,917 | ||
Interest Rate Hedge Agreements | ||||
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2015 | (3,718) | |||
Total other comprehensive (loss) income | (3,930) | |||
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | 0 | |||
Net other comprehensive (loss) income | (3,930) | |||
Balance as of September 30, 2016 | (7,648) | (7,648) | ||
Foreign Currency Translation | ||||
Increase (Decrease) Accumulated Other Comprehensive Income (Loss) Net of Tax [Roll Forward] | ||||
Balance as of December 31, 2015 | (64,690) | |||
Total other comprehensive (loss) income | 11,649 | |||
Other Comprehensive Income (loss), Net of Tax, Attributablee to Noncontrolling Interests | 27 | |||
Net other comprehensive (loss) income | 11,676 | |||
Balance as of September 30, 2016 | $ (53,014) | $ (53,014) |
Noncontrolling interests (Detai
Noncontrolling interests (Details) $ in Thousands | Apr. 01, 2016USD ($) | Apr. 01, 2015USD ($) | Sep. 30, 2016USD ($)ft²property | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)ft²property | Sep. 30, 2015USD ($) | Mar. 31, 2015 |
Noncontrolling interests | |||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 24,475 | $ 39,529 | $ (81,205) | $ 102,255 | |||
(Loss) income from discontinued operations, net | 0 | 0 | 0 | (43) | |||
Payable for purchase of noncontrolling interest | 0 | 51,887 | |||||
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | $ 24,475 | 39,529 | (81,205) | $ 102,212 | |||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ 68,014 | ||||||
Noncontrolling Interests | |||||||
Noncontrolling interests | |||||||
Number of projects subject to ownership from noncontrolling interests | property | 9 | 9 | |||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ 68,551 | ||||||
Alexandria Technology Square [Member] | |||||||
Noncontrolling interests | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | ||||||
Payable for purchase of noncontrolling interest | $ 54,000 | $ 54,300 | $ 108,300 | ||||
Alexandria Technology Square [Member] | |||||||
Noncontrolling interests | |||||||
Area of Real Estate Property | ft² | 1,200,000 | 1,200,000 | |||||
ACLS at Campus Pointe [Member] | 10290 Campus Point Drive [Member] | |||||||
Noncontrolling interests | |||||||
Area of Real Estate Property | ft² | 304,326 | 304,326 | |||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ 68,600 | ||||||
Noncontrolling Interest - Historical Cost Basis | $ 68,000 | 68,000 | |||||
ACLS at Campus Pointe [Member] | 10290 Campus Point Drive [Member] | Additional Paid-In Capital | |||||||
Noncontrolling interests | |||||||
Noncontrolling Interest, Increase from Sale of Parent Equity Interest | $ (537) |
Assets classified as held for69
Assets classified as held for sale (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||
Oct. 31, 2016USD ($)aft² | Oct. 31, 2016aft²property | Oct. 31, 2016aft²land_parcel | Sep. 30, 2016USD ($)aft²property | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($)property | Sep. 30, 2016USD ($)aft²property | Sep. 30, 2016USD ($)aft²property | Sep. 30, 2016USD ($)aft²propertyland_parcel | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015ft² | |
Income from assets held for sale [Abstract] | |||||||||||||
Gain on sales of real estate – land parcels | $ 90,000 | $ 0 | $ 90,000 | $ 0 | |||||||||
Proceeds from sale of properties | 27,332,000 | 92,455,000 | |||||||||||
Real Estate Revenue, Net | 230,379,000 | 218,610,000 | 672,544,000 | 619,519,000 | |||||||||
Assets | $ 9,293,901,000 | $ 9,293,901,000 | $ 9,293,901,000 | $ 9,293,901,000 | $ 8,881,017,000 | ||||||||
North America | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Area of Real Estate Property | ft² | 18,820,579 | 18,820,579 | 18,820,579 | 18,820,579 | |||||||||
Number of properties | property | 2 | ||||||||||||
Aggregate area | ft² | 90,690 | 90,690 | 90,690 | 90,690 | |||||||||
Net assets held for sale [Abstract] | |||||||||||||
Total assets | $ 15,456,000 | $ 15,456,000 | $ 15,456,000 | $ 15,456,000 | 12,896,000 | ||||||||
Total liabilities | 0 | 0 | 0 | 0 | 0 | ||||||||
Net assets classified as held for sale | 15,456,000 | 15,456,000 | $ 15,456,000 | $ 15,456,000 | 12,896,000 | ||||||||
Income from assets held for sale [Abstract] | |||||||||||||
Total revenues | 540,000 | 1,304,000 | 2,322,000 | 3,551,000 | |||||||||
Operating expenses | (128,000) | (779,000) | (734,000) | (1,960,000) | |||||||||
Total revenues less operating expenses | 412,000 | 525,000 | 1,588,000 | 1,591,000 | |||||||||
General and administrative expenses | (5,000) | (25,000) | (37,000) | (43,000) | |||||||||
Depreciation expense | (3,000) | (195,000) | (131,000) | (989,000) | |||||||||
Impairment of real estate | 0 | 0 | (863,000) | 0 | |||||||||
Gain on sales of real estate – land parcels | 90,000 | 0 | 90,000 | 0 | |||||||||
Income (loss) from assets classified as held for sale | $ 494,000 | $ 305,000 | $ 647,000 | 559,000 | |||||||||
North America | Assets held for sale sold in 2015 | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Number of properties sold | property | 2 | ||||||||||||
Aggregate area | ft² | 153,874 | ||||||||||||
INDIA | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Number of Properties Sold | property | 0 | 0 | 0 | 0 | |||||||||
Area of Real Estate Property | ft² | 0 | 0 | 0 | 0 | |||||||||
Area of Land | a | 28 | 28 | 28 | 28 | |||||||||
Proceeds from Sale of Real Estate | $ 12,767,000 | ||||||||||||
INDIA | Parcels Aggregating 28 Acres | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Number of properties | land_parcel | 2 | ||||||||||||
Aggregate area | a | 28 | 28 | 28 | 28 | |||||||||
Income from assets held for sale [Abstract] | |||||||||||||
Impairment of real estate | $ (29,000,000) | ||||||||||||
Disposal Group, Including Assets Held for Sale Not Qualifying as Discontinued Operations, Selling Costs | 10,200,000 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 10,600,000 | ||||||||||||
Sales of Real Estate | $ 12,800,000 | ||||||||||||
Gain on sales of real estate – land parcels | $ 0 | ||||||||||||
China and India [Member] | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Number of properties | 2 | 2 | |||||||||||
Aggregate area | ft² | 634,328 | 634,328 | 634,328 | 634,328 | |||||||||
Square Footage of Real Estate Property, Ground up Development | a | 59 | 59 | 59 | 59 | |||||||||
Real Estate Held-for-sale | $ 53,600,000 | $ 53,600,000 | $ 53,600,000 | $ 53,600,000 | |||||||||
Asia | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Area of Land | a | 196 | 196 | 196 | 196 | |||||||||
Number of properties | 8 | 6 | |||||||||||
Aggregate area | ft² | 1,200,683 | 1,200,683 | 1,200,683 | 1,200,683 | |||||||||
Square Footage of Real Estate Property, Ground up Development | a | 168 | 168 | 168 | 168 | |||||||||
Real Estate Held-for-sale | $ 105,957,000 | $ 105,957,000 | $ 105,957,000 | $ 105,957,000 | |||||||||
Net assets held for sale [Abstract] | |||||||||||||
Total assets | 69,512,000 | 69,512,000 | 69,512,000 | 69,512,000 | 218,816,000 | ||||||||
Total liabilities | (23,790,000) | (23,790,000) | (23,790,000) | (23,790,000) | (11,304,000) | ||||||||
Total accumulated other comprehensive loss | 40,870,000 | 40,870,000 | 40,870,000 | 40,870,000 | 41,118,000 | ||||||||
Net assets classified as held for sale | 86,592,000 | 86,592,000 | $ 86,592,000 | $ 86,592,000 | $ 248,630,000 | ||||||||
Income from assets held for sale [Abstract] | |||||||||||||
Total revenues | 3,493,000 | $ 1,688,000 | 10,009,000 | 5,073,000 | |||||||||
Operating expenses | (3,041,000) | (2,596,000) | (7,764,000) | (5,780,000) | |||||||||
Total revenues less operating expenses | 452,000 | (908,000) | 2,245,000 | (707,000) | |||||||||
General and administrative expenses | (432,000) | (872,000) | (2,154,000) | (3,684,000) | |||||||||
Depreciation expense | 0 | (2,129,000) | (3,009,000) | (6,277,000) | |||||||||
Impairment of real estate | (7,326,000) | $ (154,100,000) | 0 | (190,424,000) | (14,510,000) | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ 40,200,000 | ||||||||||||
Income (loss) from assets classified as held for sale | $ (7,306,000) | $ (3,909,000) | $ (193,342,000) | $ (25,178,000) | |||||||||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Asia | |||||||||||||
Income from assets held for sale [Abstract] | |||||||||||||
Concentration Risk, Percentage | 1.50% | ||||||||||||
Geographic Concentration Risk [Member] | Assets, Total [Member] | Asia | |||||||||||||
Income from assets held for sale [Abstract] | |||||||||||||
Concentration Risk, Percentage | 2.50% | ||||||||||||
Subsequent Event | INDIA | |||||||||||||
Assets held for sale [Line Items] | |||||||||||||
Proceeds from Sale of Real Estate | $ 39,590,000 | ||||||||||||
Number of properties sold | 6 | 2 | |||||||||||
Aggregate area | ft² | 566,355 | 566,355 | 566,355 | ||||||||||
Square Footage of Real Estate Property, Ground up Development | a | 109 | 109 | 109 |
Subsequent events (Details)
Subsequent events (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Oct. 31, 2016USD ($)ft²$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Subsequent Event [Line Items] | |||||
7.00% Series D cumulative convertible preferred stock | $ 161,792 | $ 161,792 | $ 237,163 | ||
Proceeds from the issuance of common stock | $ 367,802 | $ 5,052 | |||
Torrey Ridge Science Center [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Area of Real Estate Property | ft² | 294,993 | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 182,500 | ||||
Real estate occupancy percentage | 87.10% | ||||
Initial Cash Yield Percentage | 6.80% | ||||
Area of Real Estate Property for Conversion | ft² | 75,953 | ||||
7.00% Series D Cumulative Convertible Preferred Stock | |||||
Subsequent Event [Line Items] | |||||
Stock Redeemed or Called During Period, Shares | shares | 1,082,900 | 3,014,834 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 39,300 | $ 98,600 | |||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 36.31 | $ 32.72 | |||
7.00% Series D Cumulative Convertible Preferred Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock Redeemed or Called During Period, Shares | shares | 1,500,000 | ||||
Treasury Stock, Value, Acquired, Cost Method | $ 52,800 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 36.07 | ||||
7.00% Series D cumulative convertible preferred stock | $ 125,200 | ||||
At the Market Common Stock Offering Program, Established October 2016 [Member] | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common Stock, Shares Authorized | shares | 600,000,000 | ||||
Issuances of common stock (shares) | shares | 1,400,000 | ||||
Proceeds from Shares Sold Gross | $ 150,000 | ||||
Shares Issued, Average Price Per Share | $ / shares | $ 104.28 | ||||
Proceeds from the issuance of common stock | $ 147,700 |
Condensed consolidating finan71
Condensed consolidating financial information Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||||
Investments in real estate, net | $ 7,939,179 | $ 7,629,922 | ||
Investments in and advances to affiliates | 133,580 | 127,212 | ||
Cash and cash equivalents | 157,928 | 125,098 | $ 76,383 | $ 86,011 |
Restricted cash | 16,406 | 28,872 | ||
Tenant receivables | 9,635 | 10,485 | ||
Deferred rent | 318,286 | 280,570 | ||
Deferred leasing costs | 191,765 | 192,081 | ||
Investments | 320,989 | 353,465 | ||
Investments in and advances to affiliates | 0 | 0 | ||
Other assets | 206,133 | 133,312 | ||
Total assets | 9,293,901 | 8,881,017 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 789,450 | 809,818 | ||
Unsecured senior notes payable | 2,377,482 | 2,030,631 | ||
Unsecured senior line of credit | 416,000 | 151,000 | ||
Unsecured senior bank term loans | 746,162 | 944,243 | ||
Accounts payable, accrued expenses, and tenant security deposits | 605,181 | 589,356 | ||
Dividends payable | 66,705 | 62,005 | ||
Total liabilities | 5,000,980 | 4,587,053 | ||
Redeemable noncontrolling interests | 9,012 | 14,218 | ||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,910,078 | 3,975,087 | ||
Noncontrolling interests | 373,831 | 304,659 | ||
Total equity | 4,283,909 | 4,279,746 | ||
Total liabilities, noncontrolling interests, and equity | 9,293,901 | 8,881,017 | ||
Eliminations | ||||
Assets | ||||
Investments in real estate, net | 0 | 0 | ||
Investments in and advances to affiliates | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Tenant receivables | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Deferred leasing costs | 0 | 0 | ||
Investments | 0 | 0 | ||
Investments in and advances to affiliates | (14,510,119) | (13,816,222) | ||
Other assets | 0 | 0 | ||
Total assets | (14,510,119) | (13,816,222) | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 0 | 0 | ||
Unsecured senior notes payable | 0 | 0 | ||
Unsecured senior line of credit | 0 | 0 | ||
Unsecured senior bank term loans | 0 | 0 | ||
Accounts payable, accrued expenses, and tenant security deposits | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | (14,510,119) | (13,816,222) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (14,510,119) | (13,816,222) | ||
Total liabilities, noncontrolling interests, and equity | (14,510,119) | (13,816,222) | ||
Alexandria Real Estate Equities, Inc. (Issuer) | ||||
Assets | ||||
Investments in real estate, net | 0 | 0 | ||
Investments in and advances to affiliates | 0 | 0 | ||
Cash and cash equivalents | 18,530 | 31,982 | 42,738 | 52,491 |
Restricted cash | 107 | 91 | ||
Tenant receivables | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Deferred leasing costs | 0 | 0 | ||
Investments | 0 | 0 | ||
Investments in and advances to affiliates | 7,521,833 | 7,194,092 | ||
Other assets | 42,811 | 36,808 | ||
Total assets | 7,583,281 | 7,262,973 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 0 | 0 | ||
Unsecured senior notes payable | 2,377,482 | 2,030,631 | ||
Unsecured senior line of credit | 416,000 | 151,000 | ||
Unsecured senior bank term loans | 746,162 | 944,243 | ||
Accounts payable, accrued expenses, and tenant security deposits | 67,049 | 100,294 | ||
Dividends payable | 66,510 | 61,718 | ||
Total liabilities | 3,673,203 | 3,287,886 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 3,910,078 | 3,975,087 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 3,910,078 | 3,975,087 | ||
Total liabilities, noncontrolling interests, and equity | 7,583,281 | 7,262,973 | ||
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||||
Assets | ||||
Investments in real estate, net | 0 | 0 | ||
Investments in and advances to affiliates | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | 8 | 63 |
Restricted cash | 0 | 0 | ||
Tenant receivables | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Deferred leasing costs | 0 | 0 | ||
Investments | 4,487 | 4,702 | ||
Investments in and advances to affiliates | 6,848,858 | 6,490,009 | ||
Other assets | 0 | 0 | ||
Total assets | 6,853,345 | 6,494,711 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 0 | 0 | ||
Unsecured senior notes payable | 0 | 0 | ||
Unsecured senior line of credit | 0 | 0 | ||
Unsecured senior bank term loans | 0 | 0 | ||
Accounts payable, accrued expenses, and tenant security deposits | 0 | 0 | ||
Dividends payable | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 6,853,345 | 6,494,711 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 6,853,345 | 6,494,711 | ||
Total liabilities, noncontrolling interests, and equity | 6,853,345 | 6,494,711 | ||
Combined Non- Guarantor Subsidiaries | ||||
Assets | ||||
Investments in real estate, net | 7,939,179 | 7,629,922 | ||
Investments in and advances to affiliates | 133,580 | 127,212 | ||
Cash and cash equivalents | 139,398 | 93,116 | $ 33,637 | $ 33,457 |
Restricted cash | 16,299 | 28,781 | ||
Tenant receivables | 9,635 | 10,485 | ||
Deferred rent | 318,286 | 280,570 | ||
Deferred leasing costs | 191,765 | 192,081 | ||
Investments | 316,502 | 348,763 | ||
Investments in and advances to affiliates | 139,428 | 132,121 | ||
Other assets | 163,322 | 96,504 | ||
Total assets | 9,367,394 | 8,939,555 | ||
Liabilities, Noncontrolling Interests, and Equity | ||||
Secured notes payable | 789,450 | 809,818 | ||
Unsecured senior notes payable | 0 | 0 | ||
Unsecured senior line of credit | 0 | 0 | ||
Unsecured senior bank term loans | 0 | 0 | ||
Accounts payable, accrued expenses, and tenant security deposits | 538,132 | 489,062 | ||
Dividends payable | 195 | 287 | ||
Total liabilities | 1,327,777 | 1,299,167 | ||
Redeemable noncontrolling interests | 9,012 | 14,218 | ||
Alexandria Real Estate Equities, Inc.’s stockholders’ equity | 7,656,774 | 7,321,511 | ||
Noncontrolling interests | 373,831 | 304,659 | ||
Total equity | 8,030,605 | 7,626,170 | ||
Total liabilities, noncontrolling interests, and equity | $ 9,367,394 | $ 8,939,555 |
Condensed consolidating finan72
Condensed consolidating financial information Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Rental | $ 166,591 | $ 155,311 | $ 486,505 | $ 450,724 |
Tenant recoveries | 58,681 | 56,119 | 165,385 | 154,107 |
Other income | 5,107 | 7,180 | 20,654 | 14,688 |
Total revenues | 230,379 | 218,610 | 672,544 | 619,519 |
Expenses: | ||||
Rental operations | 72,002 | 68,846 | 205,164 | 192,319 |
General and administrative | 15,854 | 15,143 | 46,426 | 44,519 |
Interest | 25,850 | 27,679 | 75,730 | 77,583 |
Depreciation and amortization | 77,133 | 67,953 | 218,168 | 189,044 |
Impairment of real estate | 8,114 | 0 | 193,237 | 14,510 |
Loss on early extinguishment of debt | 3,230 | 0 | 3,230 | 189 |
Total expenses | 202,183 | 179,621 | 741,955 | 518,164 |
Equity in earnings (losses) of unconsolidated real estate joint ventures | 273 | 710 | (270) | 1,825 |
Equity in earnings of affiliates | 0 | 0 | 0 | 0 |
Gain on sales of real estate – land parcels | 90 | 0 | 90 | 0 |
Income from continuing operations | 28,469 | 39,699 | (69,681) | 103,180 |
Loss from discontinued operations | 0 | 0 | 0 | (43) |
Net income (loss) | 28,559 | 39,699 | (69,591) | 103,137 |
Net income attributable to noncontrolling interests | (4,084) | (170) | (11,614) | (925) |
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 24,475 | 39,529 | (81,205) | 102,212 |
Dividends on preferred stock | (5,007) | (6,247) | (16,388) | (18,740) |
Preferred stock redemption charge | (13,095) | 0 | (25,614) | 0 |
Net income attributable to unvested restricted stock awards | (921) | (623) | (2,807) | (1,736) |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | 5,452 | 32,659 | (126,014) | 81,736 |
Eliminations | ||||
Revenues: | ||||
Rental | 0 | 0 | 0 | 0 |
Tenant recoveries | 0 | 0 | 0 | 0 |
Other income | (3,913) | (4,113) | (10,638) | (12,088) |
Total revenues | (3,913) | (4,113) | (10,638) | (12,088) |
Expenses: | ||||
Rental operations | 0 | 0 | 0 | 0 |
General and administrative | (3,913) | (4,113) | (10,638) | (12,088) |
Interest | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment of real estate | 0 | 0 | 0 | |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Total expenses | (3,913) | (4,113) | (10,638) | (12,088) |
Equity in earnings (losses) of unconsolidated real estate joint ventures | 0 | 0 | 0 | 0 |
Equity in earnings of affiliates | (121,868) | (137,177) | (19,509) | (371,726) |
Gain on sales of real estate – land parcels | 0 | 0 | ||
Income from continuing operations | (121,868) | (19,509) | (371,726) | |
Loss from discontinued operations | 0 | |||
Net income (loss) | (121,868) | (137,177) | (19,509) | (371,726) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | (121,868) | (137,177) | (19,509) | (371,726) |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Preferred stock redemption charge | 0 | 0 | ||
Net income attributable to unvested restricted stock awards | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | (121,868) | (137,177) | (19,509) | (371,726) |
Alexandria Real Estate Equities, Inc. (Issuer) | ||||
Revenues: | ||||
Rental | 0 | 0 | 0 | 0 |
Tenant recoveries | 0 | 0 | 0 | 0 |
Other income | 1,077 | 3,355 | 7,086 | 9,890 |
Total revenues | 1,077 | 3,355 | 7,086 | 9,890 |
Expenses: | ||||
Rental operations | 0 | 0 | 0 | 0 |
General and administrative | 15,568 | 13,511 | 45,224 | 38,960 |
Interest | 21,318 | 20,470 | 60,729 | 57,494 |
Depreciation and amortization | 1,722 | 1,799 | 4,997 | 4,515 |
Impairment of real estate | 0 | 0 | 0 | |
Loss on early extinguishment of debt | 3,230 | 3,230 | 189 | |
Total expenses | 41,838 | 35,780 | 114,180 | 101,158 |
Equity in earnings (losses) of unconsolidated real estate joint ventures | 0 | 0 | 0 | 0 |
Equity in earnings of affiliates | 65,236 | 71,954 | 25,889 | 193,480 |
Gain on sales of real estate – land parcels | 0 | 0 | ||
Income from continuing operations | 24,475 | (81,205) | 102,212 | |
Loss from discontinued operations | 0 | |||
Net income (loss) | 24,475 | 39,529 | (81,205) | 102,212 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 24,475 | 39,529 | (81,205) | 102,212 |
Dividends on preferred stock | (5,007) | (6,247) | (16,388) | (18,740) |
Preferred stock redemption charge | (13,095) | (25,614) | ||
Net income attributable to unvested restricted stock awards | (921) | (623) | (2,807) | (1,736) |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | 5,452 | 32,659 | (126,014) | 81,736 |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||||
Revenues: | ||||
Rental | 0 | 0 | 0 | 0 |
Tenant recoveries | 0 | 0 | 0 | 0 |
Other income | 91 | (87) | 115 | (128) |
Total revenues | 91 | (87) | 115 | (128) |
Expenses: | ||||
Rental operations | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Interest | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment of real estate | 0 | 0 | 0 | |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Total expenses | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of unconsolidated real estate joint ventures | 0 | 0 | 0 | 0 |
Equity in earnings of affiliates | 55,532 | 63,964 | (6,282) | 174,800 |
Gain on sales of real estate – land parcels | 0 | 0 | ||
Income from continuing operations | 55,623 | (6,167) | 174,672 | |
Loss from discontinued operations | 0 | |||
Net income (loss) | 55,623 | 63,877 | (6,167) | 174,672 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 55,623 | 63,877 | (6,167) | 174,672 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Preferred stock redemption charge | 0 | 0 | ||
Net income attributable to unvested restricted stock awards | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | 55,623 | 63,877 | (6,167) | 174,672 |
Combined Non- Guarantor Subsidiaries | ||||
Revenues: | ||||
Rental | 166,591 | 155,311 | 486,505 | 450,724 |
Tenant recoveries | 58,681 | 56,119 | 165,385 | 154,107 |
Other income | 7,852 | 8,025 | 24,091 | 17,014 |
Total revenues | 233,124 | 219,455 | 675,981 | 621,845 |
Expenses: | ||||
Rental operations | 72,002 | 68,846 | 205,164 | 192,319 |
General and administrative | 4,199 | 5,745 | 11,840 | 17,647 |
Interest | 4,532 | 7,209 | 15,001 | 20,089 |
Depreciation and amortization | 75,411 | 66,154 | 213,171 | 184,529 |
Impairment of real estate | 8,114 | 193,237 | 14,510 | |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Total expenses | 164,258 | 147,954 | 638,413 | 429,094 |
Equity in earnings (losses) of unconsolidated real estate joint ventures | 273 | 710 | (270) | 1,825 |
Equity in earnings of affiliates | 1,100 | 1,259 | (98) | 3,446 |
Gain on sales of real estate – land parcels | 90 | 90 | ||
Income from continuing operations | 70,239 | 37,200 | 198,022 | |
Loss from discontinued operations | (43) | |||
Net income (loss) | 70,329 | 73,470 | 37,290 | 197,979 |
Net income attributable to noncontrolling interests | (4,084) | (170) | (11,614) | (925) |
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders | 66,245 | 73,300 | 25,676 | 197,054 |
Dividends on preferred stock | 0 | 0 | 0 | 0 |
Preferred stock redemption charge | 0 | 0 | ||
Net income attributable to unvested restricted stock awards | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders | $ 66,245 | $ 73,300 | $ 25,676 | $ 197,054 |
Condensed consolidating finan73
Condensed consolidating financial information Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 28,559 | $ 39,699 | $ (69,591) | $ 103,137 |
Unrealized losses on available-for-sale equity securities: | ||||
Unrealized holding losses arising during the period | (38,621) | (29,832) | (70,055) | 54,004 |
Reclassification adjustment for gains included in net income | (8,540) | (4,968) | (18,627) | (2,503) |
Unrealized (losses) gains on available-for-sale equity securities, net | (47,161) | (34,800) | (88,682) | 51,501 |
Unrealized gains (losses) on interest rate hedge agreements: | ||||
Unrealized interest rate hedge gains arising during the period | 2,982 | (5,474) | (7,655) | (9,712) |
Reclassification adjustment for amortization of interest expense included in net income | 1,702 | 727 | 3,725 | 1,942 |
Unrealized gains on interest rate swap agreements, net | 4,684 | (4,747) | (3,930) | (7,770) |
Unrealized foreign currency translation (losses) gains arising during the period | (1,322) | (9,294) | 842 | (17,072) |
Reclassification adjustment for losses included in net income | 3,779 | 0 | 10,807 | 9,236 |
Unrealized foreign currency translation (losses) gains arising during the period | 2,457 | (9,294) | 11,649 | (7,836) |
Total other comprehensive (loss) income | (40,020) | (48,841) | (80,963) | 35,895 |
Comprehensive income | (11,461) | (9,142) | (150,554) | 139,032 |
Less: comprehensive income attributable to noncontrolling interests | (4,081) | (71) | (11,587) | (954) |
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders | (15,542) | (9,213) | (162,141) | 138,078 |
Eliminations | ||||
Net income | (121,868) | (137,177) | (19,509) | (371,726) |
Unrealized losses on available-for-sale equity securities: | ||||
Unrealized holding losses arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for gains included in net income | 0 | 0 | 0 | 0 |
Unrealized (losses) gains on available-for-sale equity securities, net | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate hedge agreements: | ||||
Unrealized interest rate hedge gains arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 | 0 | 0 |
Unrealized gains on interest rate swap agreements, net | 0 | 0 | 0 | 0 |
Unrealized foreign currency translation (losses) gains arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for losses included in net income | 0 | 0 | 0 | |
Unrealized foreign currency translation (losses) gains arising during the period | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 | 0 | 0 |
Comprehensive income | (121,868) | (137,177) | (19,509) | (371,726) |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders | (121,868) | (137,177) | (19,509) | (371,726) |
Alexandria Real Estate Equities, Inc. (Issuer) | ||||
Net income | 24,475 | 39,529 | (81,205) | 102,212 |
Unrealized losses on available-for-sale equity securities: | ||||
Unrealized holding losses arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for gains included in net income | 0 | 0 | 0 | 0 |
Unrealized (losses) gains on available-for-sale equity securities, net | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on interest rate hedge agreements: | ||||
Unrealized interest rate hedge gains arising during the period | 2,979 | (5,474) | (7,658) | (9,712) |
Reclassification adjustment for amortization of interest expense included in net income | 1,714 | 727 | 3,737 | 1,942 |
Unrealized gains on interest rate swap agreements, net | 4,693 | (4,747) | (3,921) | (7,770) |
Unrealized foreign currency translation (losses) gains arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for losses included in net income | 0 | 0 | 0 | |
Unrealized foreign currency translation (losses) gains arising during the period | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | 4,693 | (4,747) | (3,921) | (7,770) |
Comprehensive income | 29,168 | 34,782 | (85,126) | 94,442 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders | 29,168 | 34,782 | (85,126) | 94,442 |
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||||
Net income | 55,623 | 63,877 | (6,167) | 174,672 |
Unrealized losses on available-for-sale equity securities: | ||||
Unrealized holding losses arising during the period | 58 | (41) | 136 | (19) |
Reclassification adjustment for gains included in net income | (159) | (117) | (148) | (76) |
Unrealized (losses) gains on available-for-sale equity securities, net | (101) | (158) | (12) | (95) |
Unrealized gains (losses) on interest rate hedge agreements: | ||||
Unrealized interest rate hedge gains arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | 0 | 0 | 0 | 0 |
Unrealized gains on interest rate swap agreements, net | 0 | 0 | 0 | 0 |
Unrealized foreign currency translation (losses) gains arising during the period | 0 | 0 | 0 | 0 |
Reclassification adjustment for losses included in net income | 0 | 0 | 0 | |
Unrealized foreign currency translation (losses) gains arising during the period | 0 | 0 | 0 | 0 |
Total other comprehensive (loss) income | (101) | (158) | (12) | (95) |
Comprehensive income | 55,522 | 63,719 | (6,179) | 174,577 |
Less: comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders | 55,522 | 63,719 | (6,179) | 174,577 |
Combined Non- Guarantor Subsidiaries | ||||
Net income | 70,329 | 73,470 | 37,290 | 197,979 |
Unrealized losses on available-for-sale equity securities: | ||||
Unrealized holding losses arising during the period | (38,679) | (29,791) | (70,191) | 54,023 |
Reclassification adjustment for gains included in net income | (8,381) | (4,851) | (18,479) | (2,427) |
Unrealized (losses) gains on available-for-sale equity securities, net | (47,060) | (34,642) | (88,670) | 51,596 |
Unrealized gains (losses) on interest rate hedge agreements: | ||||
Unrealized interest rate hedge gains arising during the period | 3 | 0 | 3 | 0 |
Reclassification adjustment for amortization of interest expense included in net income | (12) | 0 | (12) | 0 |
Unrealized gains on interest rate swap agreements, net | (9) | 0 | (9) | 0 |
Unrealized foreign currency translation (losses) gains arising during the period | (1,322) | (9,294) | 842 | (17,072) |
Reclassification adjustment for losses included in net income | 3,779 | 10,807 | 9,236 | |
Unrealized foreign currency translation (losses) gains arising during the period | 2,457 | (9,294) | 11,649 | (7,836) |
Total other comprehensive (loss) income | (44,612) | (43,936) | (77,030) | 43,760 |
Comprehensive income | 25,717 | 29,534 | (39,740) | 241,739 |
Less: comprehensive income attributable to noncontrolling interests | (4,081) | (71) | (11,587) | (954) |
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.'s common stockholders | $ 21,636 | $ 29,463 | $ (51,327) | $ 240,785 |
Condensed consolidating finan74
Condensed consolidating financial information Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||||
Net (loss) income | $ 28,559 | $ 39,699 | $ (69,591) | $ 103,137 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 77,133 | 67,953 | 218,168 | 189,044 |
Loss on early extinguishment of debt | 3,230 | 0 | 3,230 | 189 |
Gain on sales of real estate – land parcels | (90) | 0 | (90) | 0 |
Impairment of real estate | 8,114 | 0 | 193,237 | 14,510 |
Equity in losses of unconsolidated real estate JVs | (273) | (710) | 270 | (1,825) |
Distributions of earnings from unconsolidated real estate joint ventures | 286 | 740 | ||
Amortization of loan fees | 8,792 | 8,348 | ||
Amortization of debt premiums/discounts | (117) | (282) | ||
Amortization of acquired below-market leases | (2,905) | (5,121) | ||
Deferred rent | (30,679) | (34,421) | ||
Stock compensation expense | 19,007 | 12,922 | ||
Equity in (earnings) losses of affiliates | 0 | 0 | 0 | 0 |
Investment gains | (8,115) | (8,658) | (28,721) | (22,368) |
Investment losses | 3,849 | 3,280 | 10,670 | 11,157 |
Changes in operating assets and liabilities: | ||||
Restricted cash | (278) | 24 | ||
Tenant receivables | 843 | 380 | ||
Deferred leasing costs | (21,621) | (47,725) | ||
Other assets | (14,813) | (13,721) | ||
Accounts payable, accrued expenses, and tenant security deposits | 6,163 | 31,423 | ||
Net cash provided by operating activities | 291,851 | 246,411 | ||
Investing Activities | ||||
Proceeds from sale of properties | 27,332 | 92,455 | ||
Additions to real estate | (638,568) | (362,215) | ||
Purchase of real estate | (18,108) | (248,933) | ||
Deposits for investing activities | (54,998) | (6,707) | ||
Investments in unconsolidated real estate joint ventures | (6,924) | (7,979) | ||
Investments in subsidiaries | 0 | 0 | ||
Additions to investments | (68,384) | (67,965) | ||
Sales of investments | 35,295 | 39,590 | ||
Repayment of notes receivable | 9,054 | 4,264 | ||
Net cash used in investing activities | (715,301) | (557,490) | ||
Financing Activities | ||||
Borrowings from secured notes payable | 215,330 | 47,375 | ||
Repayments of borrowings from secured notes payable | (234,096) | (12,217) | ||
Proceeds from issuance of unsecured senior notes payable | 348,604 | 0 | ||
Borrowings from unsecured senior line of credit | 2,349,000 | 1,432,000 | ||
Repayments of borrowings from unsecured senior line of credit | (2,084,000) | (893,000) | ||
Repayment of borrowings from unsecured senior bank term loan | (200,000) | (25,000) | ||
Transfer to/from parent company | 0 | 0 | ||
Change in restricted cash related to financing activities | 7,742 | (4,737) | ||
Payment of loan fees | (16,499) | (4,182) | ||
Repurchase of 7.00% Series D preferred stock | (98,633) | 0 | ||
Proceeds from the issuance of common stock | 367,802 | 5,052 | ||
Dividends on common stock | (177,966) | (162,280) | ||
Dividends on preferred stock | (17,487) | (18,740) | ||
Financing costs paid for sale of noncontrolling interests | (8,093) | 0 | ||
Contributions from and sale of noncontrolling interests (Note 3) | 68,621 | 340 | ||
Distributions to and purchase of noncontrolling interests | (62,605) | (62,973) | ||
Net cash provided by financing activities | 457,720 | 301,638 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | (1,440) | (187) | ||
Net (decrease) increase in cash and cash equivalents | 32,830 | (9,628) | ||
Cash and cash equivalents at beginning of period | 76,383 | 125,098 | 86,011 | |
Cash and cash equivalents at end of period | 157,928 | 157,928 | ||
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid during the period for interest, net of interest capitalized | 58,820 | 64,197 | ||
Non-Cash Investing Activities | ||||
Change in accrued construction | 23,023 | (7,305) | ||
Assumption of secured notes payable in connection with purchase of properties | 0 | (82,000) | ||
Redemption of redeemable noncontrolling interest | (5,000) | 0 | ||
Payable for purchase of noncontrolling interest | 0 | (51,887) | ||
Eliminations | ||||
Operating Activities | ||||
Net (loss) income | (121,868) | (137,177) | (19,509) | (371,726) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Gain on sales of real estate – land parcels | 0 | 0 | ||
Impairment of real estate | 0 | 0 | 0 | |
Equity in losses of unconsolidated real estate JVs | 0 | 0 | 0 | 0 |
Distributions of earnings from unconsolidated real estate joint ventures | 0 | 0 | ||
Amortization of loan fees | 0 | 0 | ||
Amortization of debt premiums/discounts | 0 | 0 | ||
Amortization of acquired below-market leases | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Stock compensation expense | 0 | 0 | ||
Equity in (earnings) losses of affiliates | 121,868 | 137,177 | 19,509 | 371,726 |
Investment gains | 0 | 0 | ||
Investment losses | 0 | 0 | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | 0 | 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 provided by operating activities | 0 | 0 | ||
Investing Activities | ||||
Proceeds from sale of properties | 0 | 0 | ||
Additions to real estate | 0 | 0 | ||
Purchase of real estate | 0 | 0 | ||
Deposits for investing activities | 0 | 0 | ||
Investments in unconsolidated real estate joint ventures | 0 | 0 | ||
Investments in subsidiaries | 674,389 | 522,076 | ||
Additions to investments | 0 | 0 | ||
Sales of investments | 0 | 0 | ||
Repayment of notes receivable | 0 | 0 | ||
Net cash used in investing activities | 674,389 | 522,076 | ||
Financing Activities | ||||
Borrowings from secured notes payable | 0 | 0 | ||
Repayments of borrowings from secured notes payable | 0 | 0 | ||
Proceeds from issuance of unsecured senior notes payable | 0 | |||
Borrowings from unsecured senior line of credit | 0 | 0 | ||
Repayments of borrowings from unsecured senior line of credit | 0 | 0 | ||
Repayment of borrowings from unsecured senior bank term loan | 0 | 0 | ||
Transfer to/from parent company | (674,389) | (522,076) | ||
Change in restricted cash related to financing activities | 0 | 0 | ||
Payment of loan fees | 0 | 0 | ||
Repurchase of 7.00% Series D preferred stock | 0 | |||
Proceeds from the issuance of common stock | 0 | 0 | ||
Dividends on common stock | 0 | 0 | ||
Dividends on preferred stock | 0 | 0 | ||
Financing costs paid for sale of noncontrolling interests | 0 | |||
Contributions from and sale of noncontrolling interests (Note 3) | 0 | 0 | ||
Distributions to and purchase of noncontrolling interests | 0 | 0 | ||
Net cash provided by financing activities | (674,389) | (522,076) | ||
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net (decrease) increase in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 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 | |||
Redemption of redeemable noncontrolling interest | 0 | |||
Payable for purchase of noncontrolling interest | 0 | |||
Alexandria Real Estate Equities, Inc. (Issuer) | ||||
Operating Activities | ||||
Net (loss) income | 24,475 | 39,529 | (81,205) | 102,212 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 1,722 | 1,799 | 4,997 | 4,515 |
Loss on early extinguishment of debt | 3,230 | 3,230 | 189 | |
Gain on sales of real estate – land parcels | 0 | 0 | ||
Impairment of real estate | 0 | 0 | 0 | |
Equity in losses of unconsolidated real estate JVs | 0 | 0 | 0 | 0 |
Distributions of earnings from unconsolidated real estate joint ventures | 0 | 0 | ||
Amortization of loan fees | 5,826 | 5,717 | ||
Amortization of debt premiums/discounts | 353 | 243 | ||
Amortization of acquired below-market leases | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Stock compensation expense | 19,007 | 12,922 | ||
Equity in (earnings) losses of affiliates | (65,236) | (71,954) | (25,889) | (193,480) |
Investment gains | 0 | 0 | ||
Investment losses | 0 | 0 | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | (16) | (28) | ||
Tenant receivables | 0 | 0 | ||
Deferred leasing costs | 0 | 0 | ||
Other assets | (8,332) | (9,228) | ||
Accounts payable, accrued expenses, and tenant security deposits | (35,351) | 31,895 | ||
Net cash provided by operating activities | (117,380) | (45,043) | ||
Investing Activities | ||||
Proceeds from sale of properties | 0 | 0 | ||
Additions to real estate | 0 | 0 | ||
Purchase of real estate | 0 | 0 | ||
Deposits for investing activities | 0 | 0 | ||
Investments in unconsolidated real estate joint ventures | 0 | 0 | ||
Investments in subsidiaries | (301,852) | (302,455) | ||
Additions to investments | 0 | 0 | ||
Sales of investments | 0 | 0 | ||
Repayment of notes receivable | 0 | 0 | ||
Net cash used in investing activities | (301,852) | (302,455) | ||
Financing Activities | ||||
Borrowings from secured notes payable | 0 | 0 | ||
Repayments of borrowings from secured notes payable | 0 | 0 | ||
Proceeds from issuance of unsecured senior notes payable | 348,604 | |||
Borrowings from unsecured senior line of credit | 2,349,000 | 1,432,000 | ||
Repayments of borrowings from unsecured senior line of credit | (2,084,000) | (893,000) | ||
Repayment of borrowings from unsecured senior bank term loan | (200,000) | (25,000) | ||
Transfer to/from parent company | (69,139) | 1,853 | ||
Change in restricted cash related to financing activities | 0 | 0 | ||
Payment of loan fees | (12,401) | (2,140) | ||
Repurchase of 7.00% Series D preferred stock | (98,633) | |||
Proceeds from the issuance of common stock | 367,802 | 5,052 | ||
Dividends on common stock | (177,966) | (162,280) | ||
Dividends on preferred stock | (17,487) | (18,740) | ||
Financing costs paid for sale of noncontrolling interests | 0 | |||
Contributions from and sale of noncontrolling interests (Note 3) | 0 | 0 | ||
Distributions to and purchase of noncontrolling interests | 0 | 0 | ||
Net cash provided by financing activities | 405,780 | 337,745 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net (decrease) increase in cash and cash equivalents | (13,452) | (9,753) | ||
Cash and cash equivalents at beginning of period | 42,738 | 31,982 | 52,491 | |
Cash and cash equivalents at end of period | 18,530 | 18,530 | ||
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid during the period for interest, net of interest capitalized | 58,062 | 47,193 | ||
Non-Cash Investing Activities | ||||
Change in accrued construction | 0 | 0 | ||
Assumption of secured notes payable in connection with purchase of properties | 0 | |||
Redemption of redeemable noncontrolling interest | 0 | |||
Payable for purchase of noncontrolling interest | (51,887) | |||
Alexandria Real Estate Equities, L.P. (Guarantor Subsidiary) | ||||
Operating Activities | ||||
Net (loss) income | 55,623 | 63,877 | (6,167) | 174,672 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Gain on sales of real estate – land parcels | 0 | 0 | ||
Impairment of real estate | 0 | 0 | 0 | |
Equity in losses of unconsolidated real estate JVs | 0 | 0 | 0 | 0 |
Distributions of earnings from unconsolidated real estate joint ventures | 0 | 0 | ||
Amortization of loan fees | 0 | 0 | ||
Amortization of debt premiums/discounts | 0 | 0 | ||
Amortization of acquired below-market leases | 0 | 0 | ||
Deferred rent | 0 | 0 | ||
Stock compensation expense | 0 | 0 | ||
Equity in (earnings) losses of affiliates | (55,532) | (63,964) | 6,282 | (174,800) |
Investment gains | (566) | 0 | ||
Investment losses | 188 | 269 | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | 0 | 0 | ||
Tenant receivables | 0 | 0 | ||
Deferred leasing costs | 0 | 0 | ||
Other assets | 0 | 0 | ||
Accounts payable, accrued expenses, and tenant security deposits | (592) | 0 | ||
Net cash provided by operating activities | (855) | 141 | ||
Investing Activities | ||||
Proceeds from sale of properties | 0 | 0 | ||
Additions to real estate | 0 | 0 | ||
Purchase of real estate | 0 | 0 | ||
Deposits for investing activities | 0 | 0 | ||
Investments in unconsolidated real estate joint ventures | 0 | 0 | ||
Investments in subsidiaries | (365,132) | (215,128) | ||
Additions to investments | 0 | 0 | ||
Sales of investments | 1,174 | 6 | ||
Repayment of notes receivable | 0 | 0 | ||
Net cash used in investing activities | (363,958) | (215,122) | ||
Financing Activities | ||||
Borrowings from secured notes payable | 0 | 0 | ||
Repayments of borrowings from secured notes payable | 0 | 0 | ||
Proceeds from issuance of unsecured senior notes payable | 0 | |||
Borrowings from unsecured senior line of credit | 0 | 0 | ||
Repayments of borrowings from unsecured senior line of credit | 0 | 0 | ||
Repayment of borrowings from unsecured senior bank term loan | 0 | 0 | ||
Transfer to/from parent company | 364,813 | 214,926 | ||
Change in restricted cash related to financing activities | 0 | 0 | ||
Payment of loan fees | 0 | 0 | ||
Repurchase of 7.00% Series D preferred stock | 0 | |||
Proceeds from the issuance of common stock | 0 | 0 | ||
Dividends on common stock | 0 | 0 | ||
Dividends on preferred stock | 0 | 0 | ||
Financing costs paid for sale of noncontrolling interests | 0 | |||
Contributions from and sale of noncontrolling interests (Note 3) | 0 | 0 | ||
Distributions to and purchase of noncontrolling interests | 0 | 0 | ||
Net cash provided by financing activities | 364,813 | 214,926 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Net (decrease) increase in cash and cash equivalents | 0 | (55) | ||
Cash and cash equivalents at beginning of period | 8 | 0 | 63 | |
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 | |||
Redemption of redeemable noncontrolling interest | 0 | |||
Payable for purchase of noncontrolling interest | 0 | |||
Combined Non- Guarantor Subsidiaries | ||||
Operating Activities | ||||
Net (loss) income | 70,329 | 73,470 | 37,290 | 197,979 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 75,411 | 66,154 | 213,171 | 184,529 |
Loss on early extinguishment of debt | 0 | 0 | 0 | |
Gain on sales of real estate – land parcels | (90) | (90) | ||
Impairment of real estate | 8,114 | 193,237 | 14,510 | |
Equity in losses of unconsolidated real estate JVs | (273) | (710) | 270 | (1,825) |
Distributions of earnings from unconsolidated real estate joint ventures | 286 | 740 | ||
Amortization of loan fees | 2,966 | 2,631 | ||
Amortization of debt premiums/discounts | (470) | (525) | ||
Amortization of acquired below-market leases | (2,905) | (5,121) | ||
Deferred rent | (30,679) | (34,421) | ||
Stock compensation expense | 0 | 0 | ||
Equity in (earnings) losses of affiliates | (1,100) | (1,259) | 98 | (3,446) |
Investment gains | (28,155) | (22,368) | ||
Investment losses | 10,482 | 10,888 | ||
Changes in operating assets and liabilities: | ||||
Restricted cash | (262) | 52 | ||
Tenant receivables | 843 | 380 | ||
Deferred leasing costs | (21,621) | (47,725) | ||
Other assets | (6,481) | (4,493) | ||
Accounts payable, accrued expenses, and tenant security deposits | 42,106 | (472) | ||
Net cash provided by operating activities | 410,086 | 291,313 | ||
Investing Activities | ||||
Proceeds from sale of properties | 27,332 | 92,455 | ||
Additions to real estate | (638,568) | (362,215) | ||
Purchase of real estate | (18,108) | (248,933) | ||
Deposits for investing activities | (54,998) | (6,707) | ||
Investments in unconsolidated real estate joint ventures | (6,924) | (7,979) | ||
Investments in subsidiaries | (7,405) | (4,493) | ||
Additions to investments | (68,384) | (67,965) | ||
Sales of investments | 34,121 | 39,584 | ||
Repayment of notes receivable | 9,054 | 4,264 | ||
Net cash used in investing activities | (723,880) | (561,989) | ||
Financing Activities | ||||
Borrowings from secured notes payable | 215,330 | 47,375 | ||
Repayments of borrowings from secured notes payable | (234,096) | (12,217) | ||
Proceeds from issuance of unsecured senior notes payable | 0 | |||
Borrowings from unsecured senior line of credit | 0 | 0 | ||
Repayments of borrowings from unsecured senior line of credit | 0 | 0 | ||
Repayment of borrowings from unsecured senior bank term loan | 0 | 0 | ||
Transfer to/from parent company | 378,715 | 305,297 | ||
Change in restricted cash related to financing activities | 7,742 | (4,737) | ||
Payment of loan fees | (4,098) | (2,042) | ||
Repurchase of 7.00% Series D preferred stock | 0 | |||
Proceeds from the issuance of common stock | 0 | 0 | ||
Dividends on common stock | 0 | 0 | ||
Dividends on preferred stock | 0 | 0 | ||
Financing costs paid for sale of noncontrolling interests | (8,093) | |||
Contributions from and sale of noncontrolling interests (Note 3) | 68,621 | 340 | ||
Distributions to and purchase of noncontrolling interests | (62,605) | (62,973) | ||
Net cash provided by financing activities | 361,516 | 271,043 | ||
Effect of foreign exchange rate changes on cash and cash equivalents | (1,440) | (187) | ||
Net (decrease) increase in cash and cash equivalents | 46,282 | 180 | ||
Cash and cash equivalents at beginning of period | $ 33,637 | 93,116 | 33,457 | |
Cash and cash equivalents at end of period | $ 139,398 | 139,398 | ||
Supplemental Disclosure of Cash Flow Information | ||||
Cash paid during the period for interest, net of interest capitalized | 758 | 17,004 | ||
Non-Cash Investing Activities | ||||
Change in accrued construction | 23,023 | (7,305) | ||
Assumption of secured notes payable in connection with purchase of properties | (82,000) | |||
Redemption of redeemable noncontrolling interest | $ (5,000) | |||
Payable for purchase of noncontrolling interest | $ 0 |