Alexandria Real Estate Equities, Inc. Reports Second Quarter Ended June 30, 2014 Financial and Operating Results
FFO Per Share - Diluted, as Adjusted, for 2Q14 up 11.2% over 2Q13
Core Operations Continue to Deliver Solid Results
EPS - Diluted of $0.39
FFO Per Share - Diluted of $1.19
Total Revenues of $176.4 Million
NOI of $124.0 Million
PASADENA, Calif., July 28, 2014 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced financial and operating results for the second quarter ended June 30, 2014.
"We remain focused on our goal to provide stable and consistent FFO per-share and net asset value growth driven by strong core performance and healthy demand for our active and near-term value creation pipeline. Our performance thus far in 2014 has been solid and we anticipate solid results for the remainder of the year. We remain committed to our goal of funding our 2014 capital needs with EBITDA growth and sales of land parcels. Cash flows from operating activities after dividends and a significant increase in EBITDA is forecasted to provide significant capacity in 2015 to fund our growth, including construction, while maintaining our target net debt to adjusted EBITDA of 6.5x in 2015," said Joel S. Marcus, Chairman, Chief Executive Officer, and Founder of Alexandria Real Estate Equities, Inc.
Results
- Funds from operations ("FFO") attributable to Alexandria Real Estate Equities, Inc.'s ("Alexandria's") common stockholders – diluted, as adjusted:
- $1.19 per share for 2Q14, up 11.2%, compared to $1.07 per share for 2Q13
- $2.36 per share for YTD 2Q14, up 8.3%, compared to $2.18 per share for YTD 2Q13
- $84.5 million for 2Q14, up $12.9 million, or 18.1%, compared to $71.6 million for 2Q13
- $167.6 million for YTD 2Q14, up $26.0 million, or 18.3%, compared to $141.6 million for YTD 2Q13
- Net income attributable to Alexandria's common stockholders – diluted:
- $27.9 million, or $0.39 per share, for 2Q14 compared to $25.5 million, or $0.38 per share, for 2Q13
- $60.6 million, or $0.85 per share, for YTD 2Q14 compared to $47.9 million, or $0.74 per share, for YTD 2Q13
Core operating metrics
- Total revenues:
- $176.4 million for 2Q14, up $22.5 million, or 14.6%, compared to $153.9 million for 2Q13
- $352.6 million for YTD 2Q14, up $48.6 million, or 16.0%, compared to $304.0 million for YTD 2Q13
- Net operating income ("NOI"):
- $124.0 million for 2Q14, up $16.4 million, or 15.2%, compared to $107.7 million for 2Q13
- $247.7 million for YTD 2Q14, up $35.2 million, or 16.6%, compared to $212.6 million for YTD 2Q13
- Same Property NOI growth:
- Up 5.3% and 5.7% (cash basis) for 2Q14, compared to 2Q13
- Up 4.5% and 5.0% (cash basis) for YTD 2Q14, compared to YTD 2Q13
- Leasing activity during 2Q14:
- Executed 62 leases for 752,364 rentable square feet ("RSF")
- 9.9% and 3.0% (cash basis) rental rate increases on 2Q14 lease renewals and re-leasing of space
- Leasing activity during YTD 2Q14:
- Executed 107 leases for 1,315,757 RSF
- 13.6% and 6.3% (cash basis) rental rate increases on YTD 2Q14 lease renewals and re-leasing of space
- Occupancy for properties in North America, as of 2Q14:
- 96.9% occupancy for operating properties, up 230 basis points ("bps") from 2Q13
- 95.6% occupancy for operating and redevelopment properties, up 270 bps from 2Q13
- Operating margins steady at 70% for 2Q14
- 52% of total annualized base rent ("ABR") from investment-grade client tenants
External growth: value-creation projects and acquisitions
Value-creation projects
- 79% of our development and redevelopment projects aggregating 1,934,431 RSF in North America are leased or under lease negotiations
- 2Q14 key deliveries from our value-creation projects included the following:
- 72,216 RSF to Illumina, Inc. at 499 Illinois Street in our Mission Bay submarket
- 37,943 RSF to several tenants at 430 East 29th Street, the Alexandria CenterTM for Life Science, in our Manhattan submarket
- Commenced development of 3013/3033 Science Park Road, a 165,938 RSF project in the Torrey Pines submarket of San Diego. This development project is currently 63% leased/under negotiation, including 25% pre-leased to a publicly traded life science company. Our ability to preserve the existing steel frame in a section of the project will allow us to reduce the time to deliver a portion of the project for initial occupancy in early 2015.
- Delivery of high value pre-leased development and redevelopment projects will drive significant increases in EBITDA, cash flows, net asset value, and per share earnings. Additionally, deliveries over the next few quarters will drive non-income-producing assets (CIP and land) to 12% of gross real estate by 1Q15.
Acquisitions
- In April 2014, we acquired a land parcel at 500 Townsend Street, supporting the ground-up development of approximately 300,000 gross square feet, in the SoMa submarket of the San Francisco Bay Area for a purchase price of $50.0 million. We are in the process of perfecting entitlements, marketing for lease, and subject to market conditions, we plan to commence construction as soon as possible in 2015.
Dispositions of land parcels
- In May 2014, we completed the sale of a land parcel at 810 Dexter Avenue North in the Seattle market for a sales price of $19.0 million and a gain of $0.8 million. The buyer is expected to reposition the property for multi-family residential use.
- In July 2014, we completed the sale of two land parcels in a non-cluster market for a sales price of $7.9 million and a gain of $0.2 million. The buyer is expected to use the land for academic institution purposes.
Balance sheet
- In July 2014, we completed an offering of $700 million unsecured senior notes payable, consisting of the following:
- $400 million of 2.75% unsecured senior notes payable due in 2020
- $300 million of 4.50% unsecured senior notes payable due in 2029
- Weighted average interest rate of 3.50% and maturity of 9.6 years
- Weighted average remaining term of outstanding debt extended from 5.1 years to 6.3 years while prudently laddering debt maturities
- Net proceeds of $694 million were used to reduce variable rate debt, including the partial repayment of $125 million of our 2016 Unsecured Senior Bank Term Loan and the reduction of $569 million of borrowings outstanding on our unsecured senior line of credit.
- In connection with the partial repayment of $125 million of our 2016 Unsecured Senior Bank Term Loan, we recognized a loss on the early extinguishment of debt related to the write-off of unamortized loan fees totaling $0.5 million, or $0.01 per share.
- Certain statistics as of 2Q14 on a pro forma basis for the $700 million bond offering completed in July 2014:
- Liquidity of $1.8 billion
- Unhedged variable-rate debt as a percentage of total debt of 7%
- Cash flows from operating activities, after dividends, plus increases in EBITDA in 2015, are expected to provide significant capacity to fund $500 million to $600 million of growth, including construction, in 2015
- Unencumbered NOI as a percentage of total NOI of 84% for 2Q14
LEED statistics
- In May 2014, our 225 Binney Street property achieved LEED Gold certification.
- In June 2014, our 1201 Eastlake Avenue East property achieved LEED Silver Existing Building Operations and Maintenance ("EB O&M") certification. This building is part of only a handful of labs in the entire world with LEED Silver EB O&M certification.
- As of 2Q14, our asset base had 29 LEED certified projects with an additional 27 LEED certifications in process.
Guidance
The following guidance is based on our current view of existing market conditions and other assumptions for the year ended December 31, 2014. 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 the following page.
EPS and FFO Per Share Attributable to |
||
2014 Guidance |
||
Earnings per share |
$1.63 – $1.69 |
|
Add back: depreciation and amortization |
3.13 |
|
Other(1) |
(0.03) |
|
FFO per share |
$4.73 – $4.79 |
|
Add back: loss on early extinguishment of debt (2) |
0.01 |
|
FFO per share, as adjusted |
$4.74 – $4.80 |
Key Assumptions (Dollars in thousands) |
Low |
High |
|||||
Occupancy percentage for operating properties in |
96.7% |
97.2% |
|||||
Same property performance: |
|||||||
NOI increase |
3% |
5% |
|||||
NOI increase (cash basis) |
4% |
6% |
|||||
Lease renewals and re-leasing of space: |
|||||||
Rental rate increases |
11% |
14% |
|||||
Rental rate increases (cash basis) |
4% |
6% |
|||||
Straight-line rents |
$ |
42,000 |
$ |
47,000 |
|||
General and administrative expenses |
$ |
48,000 |
$ |
52,000 |
|||
Capitalization of interest |
$ |
37,000 |
$ |
47,000 |
|||
Interest expense |
$ |
76,000 |
$ |
92,000 |
Key Credit Metrics |
As of December 31, 2014 |
|
Net debt to Adjusted EBITDA – 4Q14 annualized |
6.8x |
|
Net debt to Adjusted EBITDA – trailing 12 months |
7.2x |
|
Fixed charge coverage ratio – 4Q14 annualized |
3.3x |
|
Fixed charge coverage ratio – trailing 12 months |
3.3x |
|
Unhedged variable-rate debt as a percentage of total debt |
</=11% |
|
Non-income-producing assets as a percentage of gross |
</=15% |
Sources and Uses of Capital (Dollars in thousands) |
Completed as |
Projected for 2014 |
||||||||||
Low |
High |
|||||||||||
Sources of debt capital: |
||||||||||||
Unsecured senior notes payable |
$ |
700,000 |
$ |
700,000 |
$ |
700,000 |
||||||
Secured notes payable borrowings (3) |
126,000 |
161,000 |
211,000 |
|||||||||
Secured notes payable repayments |
(198,000) |
(210,000) |
(210,000) |
|||||||||
Unsecured senior term loan repayment |
(125,000) |
(125,000) |
(125,000) |
|||||||||
Net activity on unsecured senior line of |
(233,000) |
(116,000) |
(121,000) |
|||||||||
Net sources of debt capital |
270,000 |
410,000 |
455,000 |
|||||||||
Other sources of capital: |
||||||||||||
Land sales/strategic joint venture capital |
27,000 |
145,000 |
245,000 |
|||||||||
Net cash provided by operating activities |
57,000 |
105,000 |
120,000 |
|||||||||
Total sources of capital |
$ |
354,000 |
$ |
660,000 |
$ |
820,000 |
||||||
Uses of capital: |
||||||||||||
Construction |
$ |
211,000 |
$ |
560,000 |
$ |
620,000 |
||||||
Acquisitions |
143,000 |
100,000 |
200,000 |
|||||||||
Total uses of capital |
$ |
354,000 |
$ |
660,000 |
$ |
820,000 |
(1) |
Includes an adjustment to eliminate the $0.01 per share gain realized on the sale of a land parcel in 2Q14. |
(2) |
Represents loss on early extinguishment of debt related to the write-off of unamortized loan fees of $0.01 per share as a result of the $125 million partial repayment of our 2016 Unsecured Senior Bank Term Loan in July 2014. |
(3) |
Includes two non-recourse secured notes payable aggregating $48.3 million assumed in connection with the acquisition of two operating assets in 1Q14, as well as borrowings under secured construction loans. |
Earnings Call Information
We will host a conference call on Tuesday, July 29, 2014, at 3:00 p.m. Eastern Time ("ET")/12:00 p.m. noon Pacific Time ("PT") that is open to the general public to discuss our financial and operating results for the second quarter ended June 30, 2014. To participate in this conference call, dial (877) 681-3378 or (719) 325-4849 and confirmation code 2573982 shortly before 3:00 p.m. ET/12:00 p.m. noon PT. 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 6:00 p.m. ET/3:00 p.m. PT on Tuesday, July 29, 2014. The replay number is (888) 203-1112 or (719) 457-0820 and the confirmation code is 2573982.
Additionally, a copy of this Earnings Press Release and Supplemental Information for the second quarter ended June 30, 2014, is available in the "For Investors" section of our website at www.are.com or by following this link: http://www.are.com/fs/2014q2.pdf.
About the Company
Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a fully integrated, self-administered and self-managed REIT uniquely focused on Class A collaborative science and technology campuses in urban innovation clusters including Greater Boston, the San Francisco Bay Area, San Diego, New York City, Maryland, Seattle, and Research Triangle Park. Alexandria is the largest and leading owner, operator, and developer in its niche with a total market capitalization of approximately $9.3 billion as of June 30, 2014, and an asset base of 31.4 million RSF, including 17.9 million RSF of operating and current value-creation projects, as well as an additional 13.5 million RSF in future ground-up development projects.
***********
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 2014 earnings per share attributable to Alexandria's common stockholders – diluted, 2014 FFO per share attributable to Alexandria's common stockholders – diluted, NOI, 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 complete and lease our existing space held for redevelopment and new properties acquired for that purpose and any properties undergoing development, 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 client tenants, general and local economic conditions, a favorable capital market environment, performance of our core operations in areas such as delivery of current and future development and redevelopment projects, leasing activity, 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 July 28, 2014, the date this document was first made available on our website, 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 (In thousands, except per share amounts) |
||||||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||
6/30/14 |
3/31/14 |
12/31/13 |
9/30/13 |
6/30/13 |
6/30/14 |
6/30/13 |
||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||||||
Rental |
$ |
134,992 |
$ |
130,570 |
$ |
125,693 |
$ |
116,052 |
$ |
114,493 |
$ |
265,562 |
$ |
226,019 |
||||||||||||||
Tenant recoveries |
40,944 |
41,682 |
39,970 |
38,691 |
35,869 |
82,626 |
71,434 |
|||||||||||||||||||||
Other income |
466 |
3,934 |
3,160 |
3,572 |
3,568 |
4,400 |
6,560 |
|||||||||||||||||||||
Total revenues |
176,402 |
176,186 |
168,823 |
158,315 |
153,930 |
352,588 |
304,013 |
|||||||||||||||||||||
Expenses: |
||||||||||||||||||||||||||||
Rental operations |
52,353 |
52,507 |
49,892 |
47,684 |
46,277 |
104,860 |
91,463 |
|||||||||||||||||||||
General and administrative |
13,836 |
13,224 |
12,751 |
11,666 |
12,455 |
27,060 |
24,103 |
|||||||||||||||||||||
Interest |
17,433 |
19,123 |
17,783 |
16,171 |
15,978 |
36,556 |
33,998 |
|||||||||||||||||||||
Depreciation and amortization |
57,314 |
50,421 |
48,084 |
48,866 |
46,344 |
107,735 |
92,173 |
|||||||||||||||||||||
Loss on early extinguishment of debt |
— |
— |
— |
1,432 |
560 |
— |
560 |
|||||||||||||||||||||
Total expenses |
140,936 |
135,275 |
128,510 |
125,819 |
121,614 |
276,211 |
242,297 |
|||||||||||||||||||||
Income from continuing operations |
35,466 |
40,911 |
40,313 |
32,496 |
32,316 |
76,377 |
61,716 |
|||||||||||||||||||||
(Loss) income from discontinued operations |
(147) |
(162) |
(143) |
(43) |
249 |
(309) |
1,086 |
|||||||||||||||||||||
Gain on sale of land parcel |
797 |
— |
4,052 |
— |
772 |
797 |
772 |
|||||||||||||||||||||
Net income |
36,116 |
40,749 |
44,222 |
32,453 |
33,337 |
76,865 |
63,574 |
|||||||||||||||||||||
Dividends on preferred stock |
(6,472) |
(6,471) |
(6,471) |
(6,472) |
(6,471) |
(12,943) |
(12,942) |
|||||||||||||||||||||
Net income attributable to noncontrolling interests |
(1,307) |
(1,195) |
(1,110) |
(960) |
(980) |
(2,502) |
(1,962) |
|||||||||||||||||||||
Net income attributable to unvested restricted stock awards |
(405) |
(374) |
(394) |
(442) |
(403) |
(779) |
(745) |
|||||||||||||||||||||
Net income attributable to Alexandria Real Estate Equities, Inc.'s |
$ |
27,932 |
$ |
32,709 |
$ |
36,247 |
$ |
24,579 |
$ |
25,483 |
$ |
60,641 |
$ |
47,925 |
||||||||||||||
Earnings per share attributable to Alexandria's common stockholders – |
||||||||||||||||||||||||||||
Continuing operations |
$ |
0.39 |
$ |
0.46 |
$ |
0.51 |
$ |
0.35 |
$ |
0.38 |
$ |
0.85 |
$ |
0.72 |
||||||||||||||
Discontinued operations |
— |
— |
— |
— |
— |
— |
0.02 |
|||||||||||||||||||||
Earnings per share – basic and diluted |
$ |
0.39 |
$ |
0.46 |
$ |
0.51 |
$ |
0.35 |
$ |
0.38 |
$ |
0.85 |
$ |
0.74 |
||||||||||||||
Weighted average shares of common stock outstanding for calculating |
71,126 |
71,073 |
71,000 |
70,900 |
66,973 |
71,100 |
65,078 |
Consolidated Balance Sheets (In thousands) (Unaudited) |
||||||||||||||||||||
6/30/14 |
3/31/14 |
12/31/13 |
9/30/13 |
6/30/13 |
||||||||||||||||
Assets |
||||||||||||||||||||
Investments in real estate |
$ |
7,030,117 |
$ |
6,930,262 |
$ |
6,776,914 |
$ |
6,613,761 |
$ |
6,453,379 |
||||||||||
Cash and cash equivalents |
61,701 |
74,970 |
57,696 |
53,839 |
302,205 |
|||||||||||||||
Restricted cash |
24,519 |
30,454 |
27,709 |
30,654 |
30,914 |
|||||||||||||||
Tenant receivables |
10,654 |
10,619 |
9,918 |
8,671 |
7,577 |
|||||||||||||||
Deferred rent |
214,793 |
202,087 |
190,425 |
182,909 |
177,507 |
|||||||||||||||
Deferred leasing and financing costs |
193,621 |
192,618 |
192,658 |
179,805 |
164,362 |
|||||||||||||||
Investments |
174,802 |
169,322 |
140,288 |
129,163 |
122,605 |
|||||||||||||||
Other assets |
105,442 |
145,707 |
134,156 |
159,567 |
120,740 |
|||||||||||||||
Total assets |
$ |
7,815,649 |
$ |
7,756,039 |
$ |
7,529,764 |
$ |
7,358,369 |
$ |
7,379,289 |
||||||||||
Liabilities, Noncontrolling Interests, and Equity |
||||||||||||||||||||
Secured notes payable |
$ |
615,551 |
$ |
597,511 |
$ |
708,831 |
$ |
708,653 |
$ |
711,029 |
||||||||||
Unsecured senior notes payable |
1,048,310 |
1,048,270 |
1,048,230 |
1,048,190 |
1,048,395 |
|||||||||||||||
Unsecured senior line of credit |
571,000 |
(1) |
506,000 |
204,000 |
14,000 |
— |
||||||||||||||
Unsecured senior bank term loans |
1,100,000 |
(1) |
1,100,000 |
1,100,000 |
1,100,000 |
1,200,000 |
||||||||||||||
Accounts payable, accrued expenses, and tenant security deposits |
434,528 |
443,893 |
435,342 |
452,139 |
368,249 |
|||||||||||||||
Dividends payable |
57,377 |
55,860 |
54,420 |
54,413 |
52,141 |
|||||||||||||||
Total liabilities |
3,826,766 |
3,751,534 |
3,550,823 |
3,377,395 |
3,379,814 |
|||||||||||||||
Commitments and contingencies |
||||||||||||||||||||
Redeemable noncontrolling interests |
14,381 |
14,413 |
14,444 |
14,475 |
14,505 |
|||||||||||||||
Alexandria Real Estate Equities, Inc.'s stockholders' equity: |
||||||||||||||||||||
Series D cumulative convertible preferred stock |
250,000 |
250,000 |
250,000 |
250,000 |
250,000 |
|||||||||||||||
Series E cumulative redeemable preferred stock |
130,000 |
130,000 |
130,000 |
130,000 |
130,000 |
|||||||||||||||
Common stock |
713 |
712 |
712 |
711 |
710 |
|||||||||||||||
Additional paid-in capital |
3,542,334 |
3,560,453 |
3,572,281 |
3,578,343 |
3,596,477 |
|||||||||||||||
Accumulated other comprehensive loss |
(16,245) |
(18,429) |
(36,204) |
(40,026) |
(39,565) |
|||||||||||||||
Alexandria's stockholders' equity |
3,906,802 |
3,922,736 |
3,916,789 |
3,919,028 |
3,937,622 |
|||||||||||||||
Noncontrolling interests |
67,700 |
67,356 |
47,708 |
47,471 |
47,348 |
|||||||||||||||
Total equity |
3,974,502 |
3,990,092 |
3,964,497 |
3,966,499 |
3,984,970 |
|||||||||||||||
Total liabilities, noncontrolling interests, and equity |
$ |
7,815,649 |
$ |
7,756,039 |
$ |
7,529,764 |
$ |
7,358,369 |
$ |
7,379,289 |
(1) |
Net proceeds of $694 million from our bond offering completed on July 18, 2014, were used to reduce variable rate debt, including the partial repayment of $125 million of our 2016 Unsecured Senior Bank Term Loan and $569 million of borrowings outstanding on our unsecured senior line of credit. |
Funds From Operations and Adjusted Funds From Operations |
||||||||||||||||||||||||||||
The following table presents a reconciliation of net income attributable to Alexandria's common stockholders – basic, the most directly comparable financial measure presented in accordance with generally accepted accounting principles ("GAAP"), to FFO attributable to Alexandria's common stockholders – basic and diluted, FFO attributable to Alexandria's common stockholders – diluted, as adjusted, and AFFO attributable to Alexandria's common stockholders – diluted. |
||||||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||
6/30/14 |
3/31/14 |
12/31/13 |
9/30/13 |
6/30/13 |
6/30/14 |
6/30/13 |
||||||||||||||||||||||
Net income attributable to Alexandria's common stockholders |
$ |
27,932 |
$ |
32,709 |
$ |
36,247 |
$ |
24,579 |
$ |
25,483 |
$ |
60,641 |
$ |
47,925 |
||||||||||||||
Depreciation and amortization |
57,314 |
50,421 |
48,101 |
49,102 |
46,580 |
107,735 |
93,575 |
|||||||||||||||||||||
(Gain) loss on sale of real estate |
— |
— |
— |
— |
(219) |
— |
121 |
|||||||||||||||||||||
Gain on sale of land parcel |
(797) |
— |
(4,052) |
— |
(772) |
(797) |
(772) |
|||||||||||||||||||||
Amount attributable to noncontrolling interests/ |
||||||||||||||||||||||||||||
Net income |
1,712 |
1,569 |
1,504 |
1,402 |
1,383 |
3,281 |
2,707 |
|||||||||||||||||||||
FFO |
(1,648) |
(1,629) |
(1,582) |
(1,494) |
(1,437) |
(3,277) |
(2,501) |
|||||||||||||||||||||
FFO attributable to Alexandria's common stockholders – basic |
84,513 |
83,070 |
80,218 |
73,589 |
71,018 |
167,583 |
141,055 |
|||||||||||||||||||||
Assumed conversion of unsecured senior convertible notes |
— |
— |
— |
5 |
5 |
— |
10 |
|||||||||||||||||||||
FFO attributable to Alexandria's common stockholders – diluted |
84,513 |
83,070 |
80,218 |
73,594 |
71,023 |
167,583 |
141,065 |
|||||||||||||||||||||
Loss on early extinguishment of debt |
— |
— |
— |
1,432 |
560 |
— |
560 |
|||||||||||||||||||||
Acquisition-related expenses |
— |
— |
1,446 |
— |
— |
— |
— |
|||||||||||||||||||||
Impairment of investments |
— |
— |
853 |
— |
— |
— |
— |
|||||||||||||||||||||
Allocation to unvested restricted stock awards |
— |
— |
(12) |
(11) |
(12) |
— |
(12) |
|||||||||||||||||||||
FFO attributable to Alexandria's common stockholders – diluted, as adjusted |
84,513 |
83,070 |
82,505 |
75,015 |
71,571 |
167,583 |
141,613 |
|||||||||||||||||||||
Non-revenue-enhancing capital expenditures: |
||||||||||||||||||||||||||||
Building improvements |
(1,255) |
(1,780) |
(1,047) |
(1,481) |
(337) |
(3,035) |
(933) |
|||||||||||||||||||||
Tenant improvements and leasing commissions |
(3,934) |
(4,053) |
(8,291) |
(3,739) |
(2,990) |
(7,987) |
(3,872) |
|||||||||||||||||||||
Straight-line rent revenue |
(12,737) |
(11,882) |
(7,928) |
(5,570) |
(8,239) |
(24,619) |
(14,437) |
|||||||||||||||||||||
Straight-line rent expense on ground leases |
697 |
711 |
445 |
374 |
539 |
1,408 |
1,077 |
|||||||||||||||||||||
Capitalized income from development projects |
— |
— |
72 |
40 |
9 |
— |
31 |
|||||||||||||||||||||
Amortization of acquired above and below market leases |
(618) |
(816) |
(826) |
(830) |
(830) |
(1,434) |
(1,660) |
|||||||||||||||||||||
Amortization of loan fees |
2,743 |
2,561 |
2,636 |
2,487 |
2,427 |
5,304 |
4,813 |
|||||||||||||||||||||
Amortization of debt premiums/discounts |
(69) |
205 |
146 |
153 |
115 |
136 |
230 |
|||||||||||||||||||||
Stock compensation expense |
3,076 |
3,228 |
4,011 |
3,729 |
4,463 |
6,304 |
7,812 |
|||||||||||||||||||||
Allocation to unvested restricted stock awards |
90 |
94 |
94 |
28 |
50 |
184 |
69 |
|||||||||||||||||||||
AFFO attributable to Alexandria's common stockholders – diluted |
$ |
72,506 |
$ |
71,338 |
$ |
71,817 |
$ |
70,206 |
$ |
66,778 |
$ |
143,844 |
$ |
134,743 |
Funds From Operations Per Share and Adjusted Funds From Operations Per Share (Unaudited) |
||||||||||||||||||||||||||||
The following table presents a reconciliation of net income per share attributable to Alexandria's common stockholders – basic, the most directly comparable financial measure presented in accordance with GAAP, to FFO per share attributable to Alexandria's common stockholders – diluted, FFO per share attributable to Alexandria's common stockholders – diluted, as adjusted, and AFFO per share attributable to Alexandria's common stockholders – diluted. For the computation of the weighted average shares used to compute the per share information, refer to the "Definitions and Other Information" section in our supplemental information. |
||||||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||
6/30/14 |
3/31/14 |
12/31/13 |
9/30/13 |
6/30/13 |
6/30/14 |
6/30/13 |
||||||||||||||||||||||
Net income per share attributable to Alexandria's common |
$ |
0.39 |
$ |
0.46 |
$ |
0.51 |
$ |
0.35 |
$ |
0.38 |
$ |
0.85 |
$ |
0.74 |
||||||||||||||
Depreciation and amortization |
0.81 |
0.71 |
0.68 |
0.69 |
0.69 |
1.52 |
1.43 |
|||||||||||||||||||||
Loss on sale of real estate |
— |
— |
— |
— |
— |
— |
0.01 |
|||||||||||||||||||||
Gain on sale of land parcel |
(0.01) |
— |
(0.06) |
— |
(0.01) |
(0.01) |
(0.01) |
|||||||||||||||||||||
FFO per share attributable to Alexandria's common stockholders – |
1.19 |
1.17 |
1.13 |
1.04 |
1.06 |
2.36 |
2.17 |
|||||||||||||||||||||
Loss on early extinguishment of debt |
— |
— |
— |
0.02 |
0.01 |
— |
0.01 |
|||||||||||||||||||||
Acquisition-related expenses |
— |
— |
0.02 |
— |
— |
— |
— |
|||||||||||||||||||||
Impairment of investments |
— |
— |
0.01 |
— |
— |
— |
— |
|||||||||||||||||||||
FFO per share attributable to Alexandria's common stockholders – diluted, as adjusted |
1.19 |
1.17 |
1.16 |
1.06 |
1.07 |
2.36 |
2.18 |
|||||||||||||||||||||
Non-revenue-enhancing capital expenditures: |
||||||||||||||||||||||||||||
Building improvements |
(0.02) |
(0.03) |
(0.01) |
(0.02) |
(0.01) |
(0.04) |
(0.01) |
|||||||||||||||||||||
Tenant improvements and leasing commissions |
(0.06) |
(0.06) |
(0.12) |
(0.05) |
(0.04) |
(0.11) |
(0.06) |
|||||||||||||||||||||
Straight-line rent revenue |
(0.18) |
(0.17) |
(0.11) |
(0.08) |
(0.12) |
(0.35) |
(0.22) |
|||||||||||||||||||||
Straight-line rent expense on ground leases |
0.01 |
0.01 |
0.01 |
0.01 |
0.01 |
0.02 |
0.02 |
|||||||||||||||||||||
Amortization of acquired above and below market leases |
(0.01) |
(0.01) |
(0.01) |
(0.01) |
(0.01) |
(0.02) |
(0.03) |
|||||||||||||||||||||
Amortization of loan fees |
0.04 |
0.04 |
0.03 |
0.03 |
0.03 |
0.07 |
0.07 |
|||||||||||||||||||||
Stock compensation expense |
0.05 |
0.05 |
0.06 |
0.05 |
0.07 |
0.09 |
0.12 |
|||||||||||||||||||||
AFFO per share attributable to Alexandria's |
$ |
1.02 |
$ |
1.00 |
$ |
1.01 |
$ |
0.99 |
$ |
1.00 |
$ |
2.02 |
$ |
2.07 |
SOURCE Alexandria Real Estate Equities, Inc.
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