Alexandria's
banking syndicate continues to support the company's world-class
brand, differentiated business model and Labspace® market
dominance
Increase in commitments available under its
unsecured senior line of credit to $5.0
billion further bolsters Alexandria's already impressive
liquidity
PASADENA, Calif., June 29,
2023 /PRNewswire/ -- Alexandria Real Estate Equities,
Inc. (NYSE: ARE), the first, preeminent, longest-tenured and
pioneering owner, operator and developer of collaborative life
science, agtech and advanced technology campuses in AAA innovation
cluster locations, today announced the increase in commitments
available under its unsecured senior line of credit ("the amended
agreement") from $4.0 billion to
$5.0 billion — an impressive
accomplishment fueled by the enduring strength of its balance sheet
and the continuing secular growth of the over $5 trillion life science industry. Alexandria leveraged longstanding existing
banking relationships and attracted one new banking partner to
increase commitments available by $1.0
billion, or 25%. This substantial increase in its unsecured
senior line of credit capacity further adds to the company's
significant liquidity of $5.3 billion
as of March 31, 2023.
![Alexandria’s strong and flexible balance sheet. Courtesy of Alexandria Real Estate Equities, Inc. Alexandria’s strong and flexible balance sheet. Courtesy of Alexandria Real Estate Equities, Inc.](https://mma.prnewswire.com/media/2143854/6_29_23_AREBalanceSheet.jpg)
The margin at closing applicable to loans based on the floating
rate and daily risk-free rate is 0.735%, including the
sustainability margin adjustment reduction of four basis points.
The amended agreement is expandable to up to $6.0 billion under an accordion feature, and the
maturity date of January 22, 2028,
assuming the company exercises its right to extend, subject to
certain conditions, was unchanged. Citibank, N.A. continues to
serve as administrative agent and sustainability structuring agent
under the amended agreement; Citibank, N.A., BofA Securities, Inc.,
JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, RBC Capital Markets, the Bank of
Nova Scotia, Mizuho Bank, Ltd., Sumitomo Mitsui Banking
Corporation, U.S. Bank National Association, TD Bank, N.A. and
Barclays Bank PLC serve as joint lead arrangers under the amended
agreement; and Citibank, N.A., BofA Securities, Inc., JPMorgan
Chase Bank, N.A., Goldman Sachs Bank USA and RBC Capital Markets serve as joint
bookrunners under the amended agreement.
"We are immensely proud of our successful and timely upsizing of
our unsecured senior line of credit capacity to $5.0 billion. This significant increase
highlights outstanding execution by our best-in-class team to
further strengthen our fortress balance sheet," said Marc E. Binda, executive vice president of
finance and treasurer of Alexandria Real Estate Equities, Inc. "We
are grateful for the deep relationships and tremendous support from
our leading lending partners. The additional liquidity achieved
provides us important flexibility to execute our differentiated
business platform uniquely focused on providing the
mission-critical laboratory infrastructure needed to support the
life science industry's pursuit of desperately needed treatments
and cures."
Alexandria's growth is
supported by a strong and flexible balance sheet with significant
liquidity, investment-grade credit ratings that rank in the top 10%
among all publicly traded U.S. REITs, no debt maturities until 2025
and 96.1% of debt at fixed rates as of March
31, 2023. Its weighted-average remaining debt term of 13.4
years as of March 31, 2023 represents
one of the longest weighted-average debt terms among all U.S.
REITs. The company also has a net debt and preferred stock to
adjusted EBITDA ratio of 5.3x for the three months ended
March 31, 2023 annualized.
Additionally, Alexandria
reiterated guidance of 6.4% annual growth in funds from operations
(FFO) per share – diluted, as adjusted, for 2023 at the midpoint of
guidance as of April 24, 2023, with a
strong adjusted EBITDA margin of 69% for 1Q23.
Alexandria continues to make
incremental enhancements to its prudently managed balance sheet,
which enables the company to execute on its pioneering,
mission-driven business model and drive long-term total stockholder
return (TSR). Since its IPO in May
1997, Alexandria has
maintained the highest standards of excellence to generate
long-term value for its stockholders. The company's outstanding TSR
of 1,444% (assuming reinvestment of dividends) from its IPO through
March 31, 2023 significantly
outperformed major indices over the same period, including the
Nasdaq Composite's TSR of 998%, the MSCI U.S. REIT's TSR of 706%
and the S&P 500's TSR of 683%. Alexandria's cash dividend of $4.84 per common share for the 12 months ending
June 30, 2023 represents an increase
of 24 cents, or 5%, over the 12
months ended June 30, 2022. The
dividend allows the company to share its continued high-quality,
strong and increasing net cash provided by operating activities
with its common stockholders while retaining a significant portion
for reinvestment into its highly leased pipeline of new Class A
development and redevelopment projects. Its FFO payout ratio
(quarterly common stock dividends divided by quarterly funds from
operations) remains favorably low at 55% for the three months ended
March 31, 2023.
About Alexandria Real Estate
Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P
500® company, is a best-in-class, mission-driven life science
REIT making a positive and lasting impact on the world. As the
pioneer of the life science real estate niche since our founding in
1994, Alexandria is the preeminent
and longest-tenured owner, operator and developer of collaborative
life science, agtech and advanced technology campuses in AAA
innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San
Diego, Seattle,
Maryland and Research Triangle.
The trusted partner to over 850 tenants, Alexandria has a total market capitalization
of $33.0 billion and an asset base in
North America of 75.6 million SF
as of March 31, 2023, which includes
41.9 million RSF of operating properties, 5.5 million RSF of Class
A properties undergoing construction and 9.7 million RSF of
near-term and intermediate-term development and redevelopment
projects. Alexandria has a
longstanding and proven track record of developing Class A
properties clustered in life science, agtech and advanced
technology campuses that provide our 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. Alexandria also provides strategic capital to
transformative life science, agrifoodtech, climate innovation and
technology companies through our venture capital platform. We
believe our unique business model and diligent underwriting ensure
a high-quality and diverse tenant base that results in higher
occupancy levels, longer lease terms, higher rental income, higher
returns and greater long-term asset value. For more information on
Alexandria, please
visit www.are.com.
CONTACT: Sara
Kabakoff, Vice President – Strategic Communications, (626)
788-5578, skabakoff@are.com
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SOURCE Alexandria Real Estate Equities, Inc.