PASADENA, Calif., July 31,
2017 /PRNewswire/ -- Alexandria Real Estate Equities, Inc.
(NYSE: ARE) announced financial and operating results for the
second quarter ended June 30,
2017.
Key highlights
20 years on the New York Stock Exchange ("NYSE")
We
celebrated our 20th anniversary as an NYSE listed REIT and achieved
a total shareholder return of 1,218%, assuming reinvestment of
dividends, from our initial public offering in May 1997 through 2Q17.
Increased common stock dividend
Common stock dividend
for 2Q17 of $0.86 per common share, up 3 cents, or 4%, over 1Q17; continuation of our
strategy to share growth in cash flows from operating activities
with our stockholders while also retaining a significant portion
for reinvestment.
Strong internal growth
- Total revenues of $273.1 million,
up 20.8%, for 2Q17, compared to $226.1
million for 2Q16, and total revenues of $543.9 million, up 23.0%, for YTD 2Q17, compared
to $442.2 million for YTD 2Q16;
- Continued substantial leasing activity and strong rental rate
growth, in light of minimal contractual lease expirations for 2017,
and a highly leased value-creation pipeline:
|
|
2Q17
|
|
1H17
|
Total leasing
activity – RSF
|
|
1,081,777
|
|
2,402,558
|
Lease renewals and
re-leasing of space:
|
|
|
|
|
Rental rate
increases
|
|
23.2%
|
|
26.2%
|
Rental rate increases
(cash basis)
|
|
9.4%
|
|
14.7%
|
RSF (included in
total leasing activity above)
|
|
604,142
|
|
1,483,005
|
- Executed key leases during 2Q17:
-
- 163,648 RSF, leased to Takeda Pharmaceutical Company Ltd. at
our redevelopment project at 9625 Towne Centre Drive in our
San Diego market; and
- 109,780 RSF, renewed with Laboratory Corporation of America at
13112 Evening Creek Drive in our San
Diego market.
- Same property net operating income growth:
-
- 1.8% and 7.0% (cash basis) for 2Q17, compared to 2Q16; and
- 2.2% and 6.2% (cash basis) for YTD 2Q17, compared to YTD
2Q16.
Strong external growth; disciplined allocation of capital to
visible, multiyear, highly leased value-creation
pipeline
- Deliveries of new Class A properties drive significant growth
in net operating income:
Delivery
Date
|
|
RSF
|
|
Percentage
Leased
|
|
Incremental Annual
Net Operating Income
|
2016
|
|
1,893,928
|
|
94%
|
|
$92
million(1)
|
1H17
|
|
304,276
|
|
100%
|
|
$21
million
|
2H17
|
|
1,100,841
|
|
81%
|
|
$74 million to $84
million(1)
|
(1)
Deliveries of projects are primarily weighted toward the fourth
quarter.
|
- 2Q17 key development project placed into service: fully leased
parking structure delivered to Illumina, Inc. at 5200 Illumina Way
in our University Town Center submarket;
- 100 Binney Street on
track to be 100% leased in 3Q17:
-
- 59% leased as of July 2017,
including one lease executed in 2Q17 and one lease executed in
July 2017
- Two leases were distributed with execution expected in the
first week of August
- One lease on track for execution in 3Q17
- $95 million in contractual cash
rents from recently completed development and redevelopment
projects:
-
- $40 million in 2Q17; and
- $55 million relatively evenly
over five quarters from 3Q17 to 3Q18.
- Completed strategic acquisitions of two properties and two land
parcels during 2Q17 for an aggregate purchase price of $244.0 million, including: (i) future development
projects of over 1.0 million SF in our Greater Stanford submarket,
(ii) a redevelopment project consisting of 175,000 RSF in Research
Triangle Park, and (iii) an operating property consisting of 77,634
RSF in our Greater Stanford submarket. See page 3 for additional
information.
Operating
results
|
2Q17
|
|
2Q16
|
|
Change
|
|
1H17
|
|
1H16
|
|
Change
|
Net income (loss)
attributable to Alexandria's common stockholders –
diluted:
|
In
millions
|
$
|
31.6
|
|
|
$
|
(127.6)
|
|
|
N/A
|
|
$
|
57.3
|
|
|
$
|
(131.5)
|
|
|
N/A
|
Per share
|
$
|
0.35
|
|
|
$
|
(1.72)
|
|
|
N/A
|
|
$
|
0.64
|
|
|
$
|
(1.79)
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations
attributable to Alexandria's common stockholders – diluted, as
adjusted:
|
In
millions
|
$
|
136.2
|
|
|
$
|
101.1
|
|
|
34.7%
|
|
$
|
266.7
|
|
|
$
|
198.2
|
|
|
34.6%
|
Per share
|
$
|
1.50
|
|
|
$
|
1.36
|
|
|
10.3%
|
|
$
|
2.98
|
|
|
$
|
2.70
|
|
|
10.4%
|
Items included in net
income (loss) attributable to Alexandria's common
stockholders
(amounts are shown
after deducting any amounts attributable to noncontrolling
interests):
|
(In millions,
except per share amounts)
|
Amount
|
|
Per Share –
Diluted
|
|
Amount
|
|
Per Share –
Diluted
|
2Q17
|
|
2Q16
|
|
2Q17
|
|
2Q16
|
|
1H17
|
|
1H16
|
|
1H17
|
|
1H16
|
Gain on sales of real
estate
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Impairment
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
properties
|
(0.2)
|
|
|
(88.4)
|
|
|
—
|
|
|
(1.19)
|
|
|
(0.2)
|
|
|
(88.4)
|
|
|
—
|
|
|
(1.20)
|
|
Land
parcels
|
—
|
|
|
(67.2)
|
|
|
—
|
|
|
(0.90)
|
|
|
—
|
|
|
(96.1)
|
|
|
—
|
|
|
(1.30)
|
|
Non-real estate
investments
|
(4.5)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
(4.5)
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.7)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
Preferred stock
redemption charge
|
—
|
|
|
(9.5)
|
|
|
—
|
|
|
(0.13)
|
|
|
(11.3)
|
|
|
(12.5)
|
|
|
(0.12)
|
|
|
(0.17)
|
|
Total
|
$
|
(4.6)
|
|
|
$
|
(165.1)
|
|
|
$
|
(0.05)
|
|
|
$
|
(2.22)
|
|
|
$
|
(16.3)
|
|
|
$
|
(197.0)
|
|
|
$
|
(0.18)
|
|
|
$
|
(2.67)
|
|
Weighted-average
shares of common stock outstanding –
diluted
|
|
90.7
|
|
|
74.3
|
|
|
|
|
|
|
89.5
|
|
|
73.5
|
|
Core operating metrics and internal growth
- Percentage of annual rental revenue in effect as of 2Q17
from:
-
- Investment-grade tenants: 51%;
- Class A properties in AAA locations: 79%;
- Occupancy for operating properties in North America as of 2Q17: 95.7%;
- Operating margin for 2Q17: 72%;
- Adjusted EBITDA margin for 2Q17: 68%; and
- Weighted-average remaining lease term for our top 20
tenants:
-
- As of 2Q17: 13.5 years;
- As of 2Q17, excluding one long-term ground lease: 9.7
years;
- See "Strong internal growth" in the key highlights section on
page 1 of this Earnings Press Release for information on our
leasing activity, rental rate growth, and net operating
income.
External growth
See page 1 of this Earnings Press
Release for key highlights
Balance sheet management
Key
Metrics
|
|
|
|
|
|
2Q17
|
|
Total market
capitalization
|
|
$
|
16.0
billion
|
|
Liquidity
|
|
$
|
1.8
billion
|
|
|
|
|
|
Net debt to Adjusted
EBITDA:
|
|
|
|
Quarter
annualized
|
|
|
6.2x
|
|
Trailing 12
months
|
|
6.8x
|
|
|
|
|
|
Fixed-charge coverage
ratio:
|
|
|
|
Quarter
annualized
|
|
4.1x
|
|
Trailing 12
months
|
|
3.9x
|
|
|
|
|
|
Unhedged variable-rate
debt as a percentage of total debt
|
|
11%
|
|
Current and future
value-creation pipeline as a percentage of gross
investments in real estate in North America
|
|
13%
|
|
Key capital events
- During 2Q17, we sold an aggregate of 2.1 million shares of
common stock under our ATM program for gross proceeds of
$245.8 million, or $118.97 per share, and net proceeds of
approximately $241.8 million. As of
2Q17, there is no remaining availability on our ATM program. We
expect to file a new ATM common stock offering program in
2H17;
- On April 14, 2017, we completed
the redemption of all 5.2 million outstanding shares of our Series
E Redeemable Preferred Stock at a redemption price of $25.00 per share, or an aggregate of $130.0 million, plus accrued dividends;
- In April 2017, we executed three
interest rate swap agreements aggregating:
-
- $150 million notional amount at a
fixed pay rate of 1.60%, effective March 29,
2018; and
- $100 million notional amount at a
fixed pay rate of 1.89%, effective March 29,
2019.
Corporate social responsibility and industry
leadership
- 49% of total annual rental revenue is expected from Leadership
in Energy and Environmental Design ("LEED®") certified
projects upon completion of 14 in-process projects.
- 86 energy conservation measures were completed in 2015 and
2016. Achieved year-over-year reduction in greenhouse gases.
- In June 2017, we celebrated the
grand opening of Alexandria LaunchLabs® at the
Alexandria Center® for Life Science – New York City and awarded the inaugural
Alexandria LaunchLabs Entrepreneurship Prize to Neochromosome, Inc.
Alexandria LaunchLabs® is NYC's premier, full-service
startup platform that satisfies the need for turn-key
office/laboratory space and access to strategic risk capital for
seed-stage life science companies. The grand opening was held in
connection with the NYC Life Science Innovation Showcase in
partnership with the New York Academic Consortium. To date, 13
initial member companies have been accepted to Alexandria
LaunchLabs® from a competitive pool of applicants,
indicating strong demand for Alexandria's office/laboratory space.
- In June 2017, we hosted former
Vice President Joe Biden and Dr.
Jill Biden at our Alexandria
Center® for Life Science – New
York City to launch the Biden Cancer Initiative, a
comprehensive program to develop and accelerate progress in cancer
prevention, detection, treatment, and care.
- In June 2017, Joel S. Marcus, Chairman, Chief Executive
Officer & Founder, was named one of "Commercial Real Estate's
Best Bosses of 2017" by Real Estate Forum. He was named one
of 25 winners (out of more than 200 nominations) across
the United States real estate
industry for his leadership qualities, manifested from our founding
in 1994 through the recent commemoration of our 20th anniversary on
the NYSE.
Acquisitions
June 30,
2017
(Dollars in thousands)
Property
|
|
Submarket/Market
|
|
Date of
Purchase
|
|
Number of
Properties
|
|
Operating
Occupancy
|
|
Square
Footage
|
|
|
|
|
|
|
|
Operating
|
|
Redevelopment
|
|
Future
Development
|
|
Purchase
Price
|
|
1Q17:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
303 Binney Street
(1)
|
|
Cambridge/Greater
Boston
|
|
3/29/17
|
|
—
|
|
N/A
|
|
|
—
|
|
|
|
—
|
|
|
208,965
|
|
|
|
$
|
80,250
|
|
88 Bluxome Street
(2)
|
|
Mission Bay/SoMa/San
Francisco
|
|
1/10/17
|
|
1
|
|
100%
|
|
|
232,470
|
(2)
|
|
|
—
|
|
|
1,070,925
|
(2)
|
|
|
130,000
|
|
3050 Callan Road and
Vista Wateridge
|
|
Torrey Pines/Sorrento
Mesa/San Diego
|
|
3/24/17
|
|
—
|
|
N/A
|
|
|
—
|
|
|
|
—
|
|
|
229,000
|
|
|
|
8,250
|
|
|
|
|
|
|
|
1
|
|
|
|
|
232,470
|
|
|
|
—
|
|
|
1,508,890
|
|
|
|
218,500
|
|
2Q17:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
960 Industrial Road
(3)
|
|
Greater Stanford/San
Francisco
|
|
5/17/17
|
|
1
|
|
100%
|
|
|
195,000
|
(3)
|
|
|
—
|
|
|
500,000
|
(3)
|
|
|
64,959
|
|
825 and 835
Industrial Road (4)
|
|
Greater Stanford/San
Francisco
|
|
6/1/17
|
|
—
|
|
N/A
|
|
|
—
|
|
|
|
—
|
|
|
530,000
|
|
|
|
85,000
|
|
1450 Page Mill Road
(5)
|
|
Greater Stanford/San
Francisco
|
|
6/1/17
|
|
1
|
|
100%
|
|
|
77,634
|
|
|
|
—
|
|
|
—
|
|
|
|
85,300
|
|
5 Laboratory Drive
(6)
|
|
Research Triangle
Park/RTP
|
|
5/25/17
|
|
1
|
|
N/A
|
|
|
—
|
|
|
|
175,000
|
|
|
—
|
|
|
|
8,750
|
|
|
|
|
|
|
|
3
|
|
|
|
|
272,634
|
|
|
|
175,000
|
|
|
1,030,000
|
|
|
|
244,009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2H17:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
266 and 275 Second
Avenue (7)
|
|
Route 128/Greater
Boston
|
|
7/11/17
|
|
2
|
|
71%
|
|
|
146,129
|
|
|
|
57,628
|
|
|
—
|
|
|
|
71,000
|
|
1455 and 1515 Third
Street (acquisition of
remaining 49% interest)
|
|
Mission Bay/SoMa/San
Francisco
|
|
11/10/16
|
|
2
|
|
100%
|
|
|
422,980
|
|
|
|
—
|
|
|
—
|
|
|
|
56,800
|
(8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
590,309
|
|
(1)
|
Land parcel located
adjacent to our Alexandria Center® at One Kendall Square
campus that is currently entitled for the development of 163,339
RSF of office or office/laboratory space and 45,626 RSF of
residential space. We may seek to increase the entitlements, which
may result in additional purchase price consideration.
|
(2)
|
We are currently
pursuing entitlements for the development of two buildings
aggregating 1,070,925 RSF in two phases. The future development
project undergoing entitlements for 1,070,925 developable square
feet will replace the leading tennis and fitness facility
consisting of 232,470 RSF. We expect to provide total estimated
project costs and related yields in the future.
|
(3)
|
We are currently
pursuing entitlements of 500,000 RSF for a multi-building
development. We have leased the existing 195,000 RSF property back
to the seller on a short-term basis, while we obtain entitlements.
The future development square footage will replace the current
operating RSF. We expect to provide total estimated project costs
and related yields in the future.
|
(4)
|
Fully-entitled land
parcel for the development of two buildings aggregating 530,000 RSF
and a parking structure. When combined with our acquisition of the
960 Industrial Road land parcel, these sites will have the ability
to develop 1.0 million SF of Class A properties clustered in
an urban science and technology campus.
|
(5)
|
Technology office
building, subject to a 51-year ground lease, located in Stanford
Research Park, a collaborative business community that supports
innovative companies in their research and development pursuits.
This recently constructed building is 100% leased to Infosys
Limited for 12 years, and we expect initial stabilized yields of
7.3% and 5.8% (cash).
|
(6)
|
We acquired 3054 East
Cornwallis Road and will redevelop and rebrand the campus along
with 6 Davis Drive as the Alexandria Center® for AgTech
– RTP, with its newly named address of 5 Laboratory
Drive.
|
(7)
|
Property acquired
with 59,656 RSF, or 29%, of vacant space, of which 57,628 RSF, or
28%, will undergo conversion from office to laboratory space
through redevelopment. The property will provide an additional
opportunity to increase stabilized cash yields through
redevelopment of the space and the re-lease of in-place
below-market leases. We expect to provide total estimated project
costs and related yields in the future.
|
(8)
|
Acquisition of the
remaining 49% interest in our unconsolidated real estate joint
venture with Uber Technologies, Inc. ("Uber") was completed in
November 2016. A portion of the consideration is payable in 2017 in
three equal installments, upon Uber's completion of construction
milestones. The first installment of $18.9 million was paid in
2Q17.
|
Dispositions
June 30,
2017
(Dollars in thousands)
Property/Market/Submarket
|
|
Date of
Sale
|
|
RSF
|
|
Net
Operating
Income
(1)
|
|
Net Operating
Income
(Cash)
(1)
|
|
Contractual
Sale Price
|
|
Gain
|
|
|
6146 Nancy Ridge
Drive/San Diego/Sorrento Mesa
|
|
1/6/17
|
|
21,940
|
|
|
N/A
|
|
N/A
|
|
$
|
3,000
|
|
$
|
270
|
|
|
1401/1413 Research
Boulevard/Maryland/Rockville (2)
|
|
5/17/17
|
|
90,000
|
|
|
N/A
|
|
N/A
|
|
|
7,937
|
|
111
|
|
|
360 Longwood
Avenue/Greater Boston/Longwood Medical Area
(3)
|
|
7/6/17
|
|
203,090
|
|
|
$
|
4,313
|
|
|
$
|
4,168
|
|
|
|
65,701
|
|
14,106
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
76,638
|
|
$
|
14,487
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents annualized
amounts for the quarter ended prior to the date of sale. Net
operating income (cash) excludes straight-line rent and
amortization of acquired below-market leases.
|
(2)
|
In May 2017, we
recognized a gain of $111 thousand upon the sale of a 35%
interest in our land parcels at 1401/1413 Research Boulevard,
located in the Rockville submarket of Maryland. The sale was
executed with a distinguished retail real estate developer for the
development of an approximately 90,000 SF retail shopping center.
We contributed the land parcels at a fair value of $7.9 million
into a new entity, our partner contributed $3.9 million, and we
received a distribution of $0.7 million. In addition, the real
estate joint venture obtained a non-recourse secured construction
loan with aggregate commitments of $25.0 million which is expected
to fund the remaining construction costs to complete the project
and we do not expect to make additional equity contributions to the
real estate joint venture. See page 41 of the supplemental
information for additional financial information on our
unconsolidated real estate joint ventures.
|
(3)
|
Represents the sale
of a condominium interest for approximately 49% of the building
RSF, or 203,090 RSF, in our unconsolidated real estate joint
venture property. Net operating income, net operating income (cash
basis), and contractual sales price represent our 27.5% share
related to the sale of the condominium interest. The unconsolidated
real estate joint venture expects to refinance the loan in 3Q17,
secured by the remaining interest in the property. We expect to
receive a cash distribution from the joint venture in the range
from $35 million to $40 million for our share of the excess cash,
primarily from the condominium sale and loan
refinancing.
|
Guidance
June 30, 2017
(Dollars in millions, except per share amounts)
The following updated guidance is based on our current view of
existing market conditions and assumptions for the year ending
December 31, 2017. There can be no
assurance that actual amounts will be materially higher or lower
than these expectations. See our discussion of "forward-looking
statements" on page 6 of this Earnings Press Release.
Summary of Key
Changes in Guidance
|
|
As of
7/31/17
|
|
As of
5/1/17
|
|
|
Summary of Key
Changes in Guidance
|
|
As of
7/31/17
|
|
As of
5/1/17
|
|
EPS, FFO per share,
and FFO per share, as adjusted
|
|
See below
|
|
See below
|
|
|
Key sources and uses
of capital
|
|
See update
below
|
|
Earnings per Share
and Funds From Operations per Share Attributable to
Alexandria's Common
Stockholders – Diluted
|
|
|
|
As of
7/31/17
|
|
As of
5/1/17
|
|
Earnings per
share
|
|
$1.40 to
$1.46
|
|
$1.43 to
$1.53
|
|
Depreciation and
amortization
|
|
4.45
|
|
|
4.45
|
|
|
Allocation to
unvested restricted stock awards
|
|
(0.04)
|
|
|
(0.04)
|
|
|
Funds from operations
per share
|
|
$5.81 to
$5.87
|
|
$5.84 to
$5.94
|
|
Add: impairment of
non-real estate investments
|
|
0.05 (1)
|
|
|
—
|
|
|
Add: loss on early
extinguishment of debt
|
|
0.01
|
|
|
0.01
|
|
|
Add: preferred stock
redemption charge
|
|
0.12 (2)
|
|
|
0.12
|
|
|
Funds from operations
per share, as adjusted
|
|
$5.99 to
$6.05
|
|
$5.97 to
$6.07
|
|
Key
Assumptions
|
|
Low
|
|
High
|
|
Occupancy percentage
in North America as of December 31, 2017
|
|
96.6%
|
|
97.2%
|
|
|
|
|
|
|
|
Lease renewals and
re-leasing of space:
|
|
|
|
|
|
Rental rate
increases
|
|
19.5%
|
|
22.5%
|
|
Rental rate increases
(cash basis)
|
|
7.5%
|
|
10.5%
|
|
Same property
performance:
|
|
|
|
|
|
Net operating income
increase
|
|
2.0%
|
|
4.0%
|
|
Net operating income
increase (cash basis)
|
|
5.5%
|
|
7.5%
|
|
|
|
|
|
|
|
Straight-line rent
revenue
|
|
$
|
107
|
|
$
|
112
|
|
General and
administrative expenses
|
|
$
|
68
|
|
$
|
73
|
|
Capitalization of
interest
|
|
$
|
48
|
|
$
|
58
|
|
Interest
expense
|
|
$
|
131
|
|
$
|
141
|
|
Key Credit
Metrics
|
|
As of
7/31/17
|
|
Net debt to Adjusted
EBITDA – 4Q17 annualized
|
|
5.3x to
5.8x
|
|
Net debt and
preferred stock to Adjusted EBITDA – 4Q17 annualized
|
|
5.3x to
5.8x
|
|
Fixed-charge coverage
ratio – 4Q17 annualized
|
|
Greater than
4.0x
|
|
Value-creation
pipeline as a percentage of gross real estate as of
December 31, 2017
|
|
Less than
10%
|
|
Key Sources and
Uses of Capital
|
|
Range
|
|
Midpoint
|
|
Key Items
Remaining
After
7/31/17
|
|
Sources of
capital:
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities after
dividends
|
|
$
|
115
|
|
|
$
|
135
|
|
|
$
|
125
|
|
|
|
|
Incremental
debt
|
|
350
|
|
|
330
|
|
|
340
|
|
|
|
|
Real estate
dispositions and common equity
|
|
1,080
|
|
|
1,350
|
|
|
1,215
|
(3)
|
|
$
|
|
230
|
|
Total sources of
capital
|
|
$
|
1,545
|
|
|
$
|
1,815
|
|
|
$
|
1,680
|
|
|
|
|
Uses of
capital:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
$
|
815
|
|
|
$
|
915
|
|
|
$
|
865
|
|
|
$
|
|
453
|
|
Acquisitions
|
|
540
|
|
|
640
|
|
|
590
|
(4)
|
|
$
|
|
38
|
(5)
|
7.00% Series D
preferred stock repurchases
|
|
60
|
|
|
130
|
|
|
95
|
|
|
$
|
|
77
|
|
6.45% Series E
preferred stock redemption
|
|
130
|
|
|
130
|
|
|
130
|
|
|
|
|
Total uses of
capital
|
|
$
|
1,545
|
|
|
$
|
1,815
|
|
|
$
|
1,680
|
|
|
|
|
Incremental debt
(included above):
|
|
|
|
|
|
|
|
|
|
|
Issuance of unsecured
senior notes payable
|
|
$
|
425
|
|
|
$
|
425
|
|
|
$
|
425
|
|
|
|
|
Borrowings – secured
construction loans
|
|
200
|
|
|
250
|
|
|
225
|
|
|
|
|
Repayments of secured
notes payable
|
|
(5)
|
|
|
(10)
|
|
|
(8)
|
|
|
|
|
Repayment of
unsecured senior term loan
|
|
(200)
|
|
|
(200)
|
|
|
(200)
|
|
|
|
|
$1.65 billion
unsecured senior line of credit/other
|
|
(70)
|
|
|
(135)
|
|
|
(102)
|
|
|
|
|
Incremental
debt
|
|
$
|
350
|
|
|
$
|
330
|
|
|
$
|
340
|
|
|
|
|
(1)
|
Primarily related to
two non-real estate investments.
|
(2)
|
Includes charges
aggregating $5.8 million related to the repurchases of 501,115
outstanding shares of our Series D Convertible Preferred Stock
in 1Q17. Additionally, in March 2017, we announced the redemption
of our Series E Redeemable Preferred Stock and recognized a
$5.5 million preferred stock redemption charge. We completed the
redemption in April 2017. Excludes any charges related to future
repurchases of our Series D Convertible Preferred Stock.
|
(3)
|
Includes 2.1 million
shares of common stock sold under our ATM program during 2Q17 for
net proceeds of $241.8 million, the public offering of 2.1 million
shares of our common stock in March 2017 for net proceeds of $217.8
million, and 4.8 million shares of our common stock subject to
forward equity sales agreements with anticipated aggregate net
proceeds of $495.5 million expected to be settled in 2H17, subject
to adjustments as provided in the forward equity sales agreements.
Also includes the estimated net cash distribution ranging from $35
million to $40 million in connection with the July 2017 sale of a
condominium interest in 203,090 RSF of our unconsolidated real
estate joint venture property at 360 Longwood Avenue and the
related refinancing of the unconsolidated secured loan. See
"Dispositions" on page 4 of this Earnings Press Release for
additional information.
|
(4)
|
Acquisitions guidance
increased by $160.0 million from $430.0 million in our May 1, 2017
forecast primarily for the acquisitions of 1450 Page Mill Road in
our Greater Stanford submarket and 266 and 275 Second Avenue in our
Route 128 submarket, which closed in June 2017 and July 2017,
respectively. See "Acquisitions" on page 3 of this Earnings Press
Release for additional information.
|
(5)
|
Represents the final
two construction milestone installments expected to be paid during
2H17 for the 2016 acquisition of the remaining 49% interest in our
unconsolidated real estate joint venture with Uber at 1455 and 1515
Third Street in our Mission Bay/SoMa submarket.
|
Earnings Call Information and About the Company
June 30, 2017
We will host a conference call on Tuesday, August 1, 2017, at
3:00 p.m. Eastern Time
("ET")/noon Pacific Time ("PT"),
which is open to the general public to discuss our financial and
operating results for the second quarter ended June 30, 2017. To participate in this conference
call, dial (877) 270-2148 or (412) 902-6510 shortly before
3:00 p.m. ET/noon PT and ask the operator to join the
Alexandria Real Estate Equities, Inc. call. The audio webcast can
be accessed at www.are.com, in the "For Investors" section. A
replay of the call will be available for a limited time from
5:00 p.m. ET/2:00 p.m. PT on Tuesday, August 1, 2017. The
replay number is (877) 344-7529 or (412) 317-0088, and the
confirmation code is 10107612.
Additionally, a copy of this Earnings Press Release and
Supplemental Information for the second quarter ended June 30, 2017, is available in the "For
Investors" section of our website at www.are.com or by following
this link: http://www.are.com/fs/2017q2.pdf.
For any questions, please contact Joel
S. Marcus, chairman, chief executive officer, and founder,
at (626) 578-9693 or Dean A.
Shigenaga, executive vice president, chief financial
officer, and treasurer, at (626) 578-0777.
About the Company
Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P
500® company, is an urban office real estate investment
trust ("REIT") uniquely focused on collaborative life science and
technology campuses in AAA innovation cluster locations, with a
total market capitalization of $16.0
billion and an asset base in North
America of 28.4 million square feet, as of June 30, 2017. The asset base in North America includes 20.6 million RSF of
operating properties, including 1.7 million RSF of development and
redevelopment of new Class A properties currently undergoing
construction. Additionally, the asset base in North America includes 7.8 million SF of
future development projects, including 1.3 million SF of near-term
projects undergoing marketing for lease and pre-construction
activities and 2.8 million SF of intermediate development projects.
Founded in 1994, Alexandria
pioneered this niche 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 has a longstanding and
proven track record of developing Class A properties clustered in
urban life 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.
***********
This document includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements include, without limitation,
statements regarding our 2017 earnings per share attributable to
Alexandria's common stockholders –
diluted, 2017 funds from operations per share attributable to
Alexandria's common stockholders –
diluted, net operating income, and our projected sources and uses
of capital. You can identify the forward-looking statements by
their use of forward-looking words, such as "forecast," "guidance,"
"projects," "estimates," "anticipates," "believes," "expects,"
"intends," "may," "plans," "seeks," "should," or "will," or the
negative of those words or similar words. These forward-looking
statements are based on our current expectations, beliefs,
projections, future plans and strategies, anticipated events or
trends, and similar expressions concerning matters that are not
historical facts, as well as a number of assumptions concerning
future events. There can be no assurance that actual results will
not be materially higher or lower than these expectations. These
statements are subject to risks, uncertainties, assumptions, and
other important factors that could cause actual results to differ
materially from the results discussed in the forward-looking
statements. Factors that might cause such a difference include,
without limitation, our failure to obtain capital (debt,
construction financing, and/or equity) or refinance debt
maturities, increased interest rates and operating costs, adverse
economic or real estate developments in our markets, our failure to
successfully place into service and lease any properties undergoing
development or redevelopment and our existing space held for future
development or redevelopment (including new properties acquired for
that purpose), our failure to successfully operate or lease
acquired properties, decreased rental rates, increased vacancy
rates or failure to renew or replace expiring leases, defaults on
or non-renewal of leases by tenants, adverse general and local
economic conditions, an unfavorable capital market environment,
decreased leasing activity or lease renewals, and other risks and
uncertainties detailed in our filings with the Securities and
Exchange Commission ("SEC"). Accordingly, you are cautioned not to
place undue reliance on such forward-looking statements. All
forward-looking statements are made as of the date of this earnings
press release, and unless otherwise stated, we assume no obligation
to update this information and expressly disclaim any obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise. For more
discussion relating to risks and uncertainties that could cause
actual results to differ materially from those anticipated in our
forward-looking statements, and risks to our business in general,
please refer to our SEC filings, including our most recent annual
report on Form 10-K and any subsequent quarterly reports on Form
10-Q.
Consolidated Statements of Income
June 30, 2017
(In thousands, except per share amounts)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
6/30/17
|
|
3/31/17
|
|
12/31/16
|
|
9/30/16
|
|
6/30/16
|
|
6/30/17
|
|
6/30/16
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
$
|
211,942
|
|
|
$
|
207,193
|
|
|
$
|
187,315
|
|
|
$
|
166,591
|
|
|
$
|
161,638
|
|
|
$
|
419,135
|
|
|
$
|
319,914
|
|
Tenant
recoveries
|
|
60,470
|
|
|
61,346
|
|
|
58,270
|
|
|
58,681
|
|
|
54,107
|
|
|
121,816
|
|
|
106,704
|
|
Other income
|
|
647
|
(1)
|
|
2,338
|
|
|
3,577
|
|
|
5,107
|
|
|
10,331
|
|
|
2,985
|
|
|
15,547
|
|
Total
revenues
|
|
273,059
|
|
|
270,877
|
|
|
249,162
|
|
|
230,379
|
|
|
226,076
|
|
|
543,936
|
|
|
442,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
operations
|
|
76,980
|
|
|
77,087
|
|
|
73,244
|
|
|
72,002
|
|
|
67,325
|
|
|
154,067
|
|
|
133,162
|
|
General and
administrative
|
|
19,234
|
|
|
19,229
|
|
|
17,458
|
|
|
15,854
|
|
|
15,384
|
|
|
38,463
|
|
|
30,572
|
|
Interest
|
|
31,748
|
|
|
29,784
|
|
|
31,223
|
|
|
25,850
|
|
|
25,025
|
|
|
61,532
|
|
|
49,880
|
|
Depreciation and
amortization
|
|
104,098
|
|
|
97,183
|
|
|
95,222
|
|
|
77,133
|
|
|
70,169
|
|
|
201,281
|
|
|
141,035
|
|
Impairment of real
estate
|
|
203
|
|
|
—
|
|
|
16,024
|
|
|
8,114
|
|
|
156,143
|
|
|
203
|
|
|
185,123
|
|
Loss on early
extinguishment of debt
|
|
—
|
|
|
670
|
|
|
—
|
|
|
3,230
|
|
|
—
|
|
|
670
|
|
|
—
|
|
Total
expenses
|
|
232,263
|
|
|
223,953
|
|
|
233,171
|
|
|
202,183
|
|
|
334,046
|
|
|
456,216
|
|
|
539,772
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings
(losses) of unconsolidated real estate joint ventures
|
|
589
|
|
|
361
|
|
|
86
|
|
|
273
|
|
|
(146)
|
|
|
950
|
|
|
(543)
|
|
Gain on sales of real
estate – rental properties
|
|
—
|
|
|
270
|
|
|
3,715
|
|
|
—
|
|
|
—
|
|
|
270
|
|
|
—
|
|
Gain on sales of real
estate – land parcels
|
|
111
|
|
|
—
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
111
|
|
|
—
|
|
Net income
(loss)
|
|
41,496
|
|
|
47,555
|
|
|
19,792
|
|
|
28,559
|
|
|
(108,116)
|
|
|
89,051
|
|
|
(98,150)
|
|
Net income
attributable to noncontrolling interests
|
|
(7,275)
|
|
|
(5,844)
|
|
|
(4,488)
|
|
|
(4,084)
|
|
|
(3,500)
|
|
|
(13,119)
|
|
|
(7,530)
|
|
Net income (loss)
attributable to Alexandria Real Estate Equities, Inc.'s
stockholders
|
|
34,221
|
|
|
41,711
|
|
|
15,304
|
|
|
24,475
|
|
|
(111,616)
|
|
|
75,932
|
|
|
(105,680)
|
|
Dividends on
preferred stock
|
|
(1,278)
|
|
|
(3,784)
|
|
|
(3,835)
|
|
|
(5,007)
|
|
|
(5,474)
|
|
|
(5,062)
|
|
|
(11,381)
|
|
Preferred stock
redemption charge
|
|
—
|
|
|
(11,279)
|
|
|
(35,653)
|
|
|
(13,095)
|
|
|
(9,473)
|
|
|
(11,279)
|
|
|
(12,519)
|
|
Net income
attributable to unvested restricted stock awards
|
|
(1,313)
|
|
|
(987)
|
|
|
(943)
|
|
|
(921)
|
|
|
(1,085)
|
|
|
(2,300)
|
|
|
(1,886)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Alexandria Real Estate Equities, Inc.'s
common
stockholders
|
|
$
|
31,630
|
|
|
$
|
25,661
|
|
|
$
|
(25,127)
|
|
|
$
|
5,452
|
|
|
$
|
(127,648)
|
|
|
$
|
57,291
|
|
|
$
|
(131,466)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders – basic and diluted
|
|
$
|
0.35
|
|
|
$
|
0.29
|
|
|
$
|
(0.31)
|
|
|
$
|
0.07
|
|
|
$
|
(1.72)
|
|
|
$
|
0.64
|
|
|
$
|
(1.79)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
90,215
|
|
|
88,147
|
|
|
80,800
|
|
|
76,651
|
|
|
74,319
|
|
|
89,186
|
|
|
73,452
|
|
Diluted
|
|
90,745
|
|
|
88,200
|
|
|
80,800
|
|
|
77,402
|
|
|
74,319
|
|
|
89,479
|
|
|
73,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share of common stock
|
|
$
|
0.86
|
|
|
$
|
0.83
|
|
|
$
|
0.83
|
|
|
$
|
0.80
|
|
|
$
|
0.80
|
|
|
$
|
1.69
|
|
|
$
|
1.60
|
|
(1)
|
Includes impairment
charges aggregating $4.5 million primarily related to two non-real
estate investments.
|
Consolidated Balance Sheets
June 30, 2017
(In thousands)
|
|
6/30/17
|
|
3/31/17
|
|
12/31/16
|
|
9/30/16
|
|
6/30/16
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Investments in real
estate
|
|
$
|
9,819,413
|
|
|
$
|
9,470,667
|
|
|
$
|
9,077,972
|
|
|
$
|
7,939,179
|
|
|
$
|
7,774,608
|
|
Investments in
unconsolidated real estate joint ventures
|
|
58,083
|
|
|
50,457
|
|
|
50,221
|
|
|
133,580
|
|
|
132,433
|
|
Cash and cash
equivalents
|
|
124,877
|
|
|
151,209
|
|
|
125,032
|
|
|
157,928
|
|
|
256,000
|
|
Restricted
cash
|
|
20,002
|
|
|
18,320
|
|
|
16,334
|
|
|
16,406
|
|
|
13,131
|
|
Tenant
receivables
|
|
8,393
|
|
|
9,979
|
|
|
9,744
|
|
|
9,635
|
|
|
9,196
|
|
Deferred
rent
|
|
383,062
|
|
|
364,348
|
|
|
335,974
|
|
|
318,286
|
|
|
303,379
|
|
Deferred leasing
costs
|
|
201,908
|
|
|
202,613
|
|
|
195,937
|
|
|
191,765
|
|
|
191,619
|
|
Investments
|
|
424,920
|
|
|
394,471
|
|
|
342,477
|
|
|
320,989
|
|
|
360,050
|
|
Other
assets
|
|
205,009
|
|
|
206,562
|
|
|
201,197
|
|
|
206,133
|
|
|
104,414
|
|
Total
assets
|
|
$
|
11,245,667
|
|
|
$
|
10,868,626
|
|
|
$
|
10,354,888
|
|
|
$
|
9,293,901
|
|
|
$
|
9,144,830
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities,
Noncontrolling Interests, and Equity
|
|
|
|
|
|
|
|
|
|
|
Secured notes
payable
|
|
$
|
1,127,348
|
|
|
$
|
1,083,758
|
|
|
$
|
1,011,292
|
|
|
$
|
789,450
|
|
|
$
|
722,794
|
|
Unsecured senior
notes payable
|
|
2,800,398
|
|
|
2,799,508
|
|
|
2,378,262
|
|
|
2,377,482
|
|
|
2,376,713
|
|
Unsecured senior line
of credit
|
|
300,000
|
|
|
—
|
|
|
28,000
|
|
|
416,000
|
|
|
72,000
|
|
Unsecured senior bank
term loans
|
|
547,639
|
|
|
547,420
|
|
|
746,471
|
|
|
746,162
|
|
|
945,030
|
|
Accounts payable,
accrued expenses, and tenant security deposits
|
|
734,189
|
|
|
782,637
|
|
|
731,671
|
|
|
605,181
|
|
|
593,628
|
|
Dividends
payable
|
|
81,602
|
|
|
78,976
|
|
|
76,914
|
|
|
66,705
|
|
|
67,188
|
|
Preferred stock
redemption liability
|
|
—
|
|
|
130,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total
liabilities
|
|
5,591,176
|
|
|
5,422,299
|
|
|
4,972,610
|
|
|
5,000,980
|
|
|
4,777,353
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
11,410
|
|
|
11,320
|
|
|
11,307
|
|
|
9,012
|
|
|
9,218
|
|
|
|
|
|
|
|
|
|
|
|
|
Alexandria Real
Estate Equities, Inc.'s stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
7.00% Series D
cumulative convertible preferred stock
|
|
74,386
|
|
|
74,386
|
|
|
86,914
|
|
|
161,792
|
|
|
188,864
|
|
6.45% Series E
cumulative redeemable preferred stock
|
|
—
|
|
|
—
|
|
|
130,000
|
|
|
130,000
|
|
|
130,000
|
|
Common
stock
|
|
921
|
|
|
899
|
|
|
877
|
|
|
768
|
|
|
766
|
|
Additional paid-in
capital
|
|
5,059,180
|
|
|
4,855,686
|
|
|
4,672,650
|
|
|
3,649,263
|
|
|
3,693,807
|
|
Accumulated other
comprehensive income (loss)
|
|
22,677
|
|
|
21,460
|
|
|
5,355
|
|
|
(31,745)
|
|
|
8,272
|
|
Alexandria Real
Estate Equities, Inc.'s stockholders' equity
|
|
5,157,164
|
|
|
4,952,431
|
|
|
4,895,796
|
|
|
3,910,078
|
|
|
4,021,709
|
|
Noncontrolling
interests
|
|
485,917
|
|
|
482,576
|
|
|
475,175
|
|
|
373,831
|
|
|
336,550
|
|
Total
equity
|
|
5,643,081
|
|
|
5,435,007
|
|
|
5,370,971
|
|
|
4,283,909
|
|
|
4,358,259
|
|
Total liabilities,
noncontrolling interests, and equity
|
|
$
|
11,245,667
|
|
|
$
|
10,868,626
|
|
|
$
|
10,354,888
|
|
|
$
|
9,293,901
|
|
|
$
|
9,144,830
|
|
Funds From Operations and Funds From Operations per
Share
June 30, 2017
(In thousands, except per share amounts)
The following tables present a reconciliation of net income
(loss) attributable to Alexandria's common stockholders, the most
directly comparable financial measure presented in accordance with
generally accepted accounting principles ("GAAP"), including our
share of amounts from consolidated and unconsolidated real estate
joint ventures, to funds from operations attributable to
Alexandria's common stockholders –
diluted, and funds from operations attributable to Alexandria's common stockholders – diluted, as
adjusted, and related per share amounts. Amounts allocable to
unvested restricted stock awards are not material and are not
presented separately within the per share table below. Per share
amounts may not add due to rounding.
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
6/30/17
|
|
3/31/17
|
|
12/31/16
|
|
9/30/16
|
|
6/30/16
|
|
6/30/17
|
|
6/30/16
|
Net income (loss)
attributable to Alexandria's common stockholders
|
|
$
|
31,630
|
|
|
$
|
25,661
|
|
|
$
|
(25,127)
|
|
|
$
|
5,452
|
|
|
$
|
(127,648)
|
|
|
$
|
57,291
|
|
|
$
|
(131,466)
|
|
Depreciation and
amortization
|
|
104,098
|
|
|
97,183
|
|
|
95,222
|
|
|
77,133
|
|
|
70,169
|
|
|
201,281
|
|
|
141,035
|
|
Noncontrolling share
of depreciation and amortization from consolidated real estate
JVs
|
|
(3,735)
|
|
|
(3,642)
|
|
|
(2,598)
|
|
|
(2,224)
|
|
|
(2,226)
|
|
|
(7,377)
|
|
|
(4,527)
|
|
Our share of
depreciation and amortization from unconsolidated real estate
JVs
|
|
324
|
|
|
412
|
|
|
655
|
|
|
658
|
|
|
651
|
|
|
736
|
|
|
1,394
|
|
Gain on sales of real
estate – rental properties
|
|
—
|
|
|
(270)
|
|
|
(3,715)
|
|
|
—
|
|
|
—
|
|
|
(270)
|
|
|
—
|
|
Gain on sales of real
estate – land parcels
|
|
(111)
|
|
|
—
|
|
|
—
|
|
|
(90)
|
|
|
—
|
|
|
(111)
|
|
|
—
|
|
Impairment of real
estate – rental properties
|
|
203
|
|
|
—
|
|
|
3,506
|
|
|
6,293
|
|
|
88,395
|
|
|
203
|
|
|
88,395
|
|
Allocation to
unvested restricted stock awards
|
|
(685)
|
|
|
(561)
|
|
|
—
|
|
|
(438)
|
|
|
—
|
|
|
(1,245)
|
|
|
—
|
|
Funds from
operations attributable to Alexandria's common stockholders
– diluted
(1)
|
|
131,724
|
|
|
118,783
|
|
|
67,943
|
|
|
86,784
|
|
|
29,341
|
|
|
250,508
|
|
|
94,831
|
|
Non-real estate
investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,361)
|
|
|
—
|
|
|
(4,361)
|
|
Impairment of land
parcels and non-real estate investments
|
|
4,491
|
(2)
|
|
—
|
|
|
12,511
|
|
|
4,886
|
|
|
67,162
|
|
|
4,491
|
(2)
|
|
96,142
|
|
Loss on early
extinguishment of debt
|
|
—
|
|
|
670
|
|
|
—
|
|
|
3,230
|
|
|
—
|
|
|
670
|
|
|
—
|
|
Preferred stock
redemption charge
|
|
—
|
|
|
11,279
|
|
|
35,653
|
|
|
13,095
|
|
|
9,473
|
|
|
11,279
|
|
|
12,519
|
|
Allocation to
unvested restricted stock awards
|
|
(58)
|
|
|
(150)
|
|
|
(605)
|
|
|
(359)
|
|
|
(530)
|
|
|
(209)
|
|
|
(969)
|
|
Funds from
operations attributable to Alexandria's common stockholders
– diluted, as
adjusted
|
|
$
|
136,157
|
|
|
$
|
130,582
|
|
|
$
|
115,502
|
|
|
$
|
107,636
|
|
|
$
|
101,085
|
|
|
$
|
266,739
|
|
|
$
|
198,162
|
|
Net income (loss)
per share attributable to Alexandria's common
stockholders
|
|
$
|
0.35
|
|
|
$
|
0.29
|
|
|
$
|
(0.31)
|
|
|
$
|
0.07
|
|
|
$
|
(1.72)
|
|
|
$
|
0.64
|
|
|
$
|
(1.79)
|
|
Depreciation and
amortization
|
|
1.10
|
|
|
1.06
|
|
|
1.15
|
|
|
0.97
|
|
|
0.92
|
|
|
2.16
|
|
|
1.88
|
|
Gain on sales of real
estate – rental properties
|
|
—
|
|
|
—
|
|
|
(0.05)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Impairment of real
estate – rental properties
|
|
—
|
|
|
—
|
|
|
0.05
|
|
|
0.08
|
|
|
1.19
|
|
|
—
|
|
|
1.20
|
|
Funds from
operations per share attributable to Alexandria's common
stockholders – diluted (1)
|
|
1.45
|
|
|
1.35
|
|
|
0.84
|
|
|
1.12
|
|
|
0.39
|
|
|
2.80
|
|
|
1.29
|
|
Non-real estate
investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.06)
|
|
|
—
|
|
|
(0.06)
|
|
Impairment of land
parcels and non-real estate investments
|
|
0.05
|
(2)
|
|
—
|
|
|
0.15
|
|
|
0.06
|
|
|
0.90
|
|
|
0.05
|
(2)
|
|
1.30
|
|
Loss on early
extinguishment of debt
|
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.04
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Preferred stock
redemption charge
|
|
—
|
|
|
0.12
|
|
|
0.43
|
|
|
0.17
|
|
|
0.13
|
|
|
0.12
|
|
|
0.17
|
|
Funds from
operations per share attributable to Alexandria's common
stockholders – diluted, as adjusted
|
|
$
|
1.50
|
|
|
$
|
1.48
|
|
|
$
|
1.42
|
|
|
$
|
1.39
|
|
|
$
|
1.36
|
|
|
$
|
2.98
|
|
|
$
|
2.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares of common stock outstanding for calculating funds from
operations per share and funds from operations, as adjusted,
per share – diluted
|
|
90,745
|
|
|
88,200
|
|
|
81,280
|
|
|
77,402
|
|
|
74,319
|
|
|
89,479
|
|
|
73,452
|
|
(1)
|
Calculated in
accordance with standards established by the Advisory Board of
Governors of the National Association of Real Estate Investment
Trusts (the "NAREIT Board of Governors") in its April 2002
White Paper and related implementation guidance.
|
(2)
|
Primarily related to
two non-real estate investments.
|
View original
content:http://www.prnewswire.com/news-releases/alexandria-real-estate-equities-inc-reports-second-quarter-ended-june-30-2017-financial-and-operating-results-strong-internal-and-external-growth-300496703.html
SOURCE Alexandria Real Estate Equities, Inc.