Standard & Poor's Raises Alexandria's Credit Outlook to Positive
Alexandria's Strong Leasing Momentum Continues as the West Tower at the Alexandria Center™ for Life Science in New York City Receives LEED® Gold Certification
Alexandria's West Tower is currently 81% leased or under negotiation
PASADENA, Calif., Aug. 25, 2014 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE), an approximately $9.3 billion total market capitalization real estate investment trust (REIT) uniquely focused on collaborative science and technology campuses in urban innovation clusters, announced today that Standard & Poor's Rating Services raised its credit outlook for the Company to Positive from Stable, reflecting continued and further expected improvement in key credit metrics and growth in cash flows. The improvement in the outlook is driven primarily by the near-term completion and delivery of significant rentable square feet (RSF) of pre-leased value-creation development projects, the lengthening of the weighted average remaining maturity of outstanding debt to approximately 6.3 years, and the reduction in unhedged variable rate debt to 7% of total debt. The Company's credit profile has steadily improved since receipt of its initial credit rating in July 2011. The Company's total market capitalization and gross assets are approaching $10 billion. Additionally, strong, growing and stable cash flows are supported by an industry-leading client tenant base, with investment-grade-rated client tenants representing over 50% of the Company's total annualized base rent. The Company's credit rating is anticipated to further improve as it continues to strengthen its overall credit metrics and cash flows primarily through the completion and delivery of pre-leased value-creation development projects.
Alexandria's West Tower is currently 81% leased or under negotiation
Alexandria's strong leasing momentum continues at the Alexandria Center for Life Science West Tower, the first and only commercial science park in New York City. During the past couple of months, Alexandria commenced negotiations on an aggregate of approximately 50,000 rentable square feet, or 12% of the 418,640 RSF project, with new prospective and existing client tenants. Additionally, Alexandria executed an important lease with Intra-Cellular Therapies, Inc. (NASDAQ: ITCI), a home grown New York City biopharmaceutical company, for approximately 16,530 RSF. The West Tower is currently 81% leased or under negotiation.
Intra-Cellular Therapies, Inc. is a top-tier biopharmaceutical company focused on the development of therapeutics for the treatment of diseases and disorders of the central nervous system (CNS). Founded in 2002, Intra-Cellular Therapies, Inc. began by commercializing technologies developed in the laboratory of its Co-Founder and Nobel Laureate, Paul Greengard, Ph.D., at The Rockefeller University. It has since developed a pipeline of product candidates that has the potential to treat several important and significant CNS diseases, including its most advanced drug, ITI-007, which recently completed an End-of-Phase 2 meeting with the U.S. Food and Drug Administration (FDA). Intra-Cellular Therapies, Inc. is now proceeding with Phase 3 development of ITI-007 for the treatment of schizophrenia. Intra-Cellular Therapies, Inc. will be relocating its corporate and R&D headquarters to the West Tower
"We look forward to joining the thriving scientific environment at the Alexandria Center for Life Science," said Sharon Mates, Ph.D., Co-Founder, Chairman and Chief Executive Officer of Intra-Cellular Therapies, Inc. "We believe that as we continue to grow here in New York City, our new headquarters and research facility at the innovative Alexandria Center campus will inspire our vibrant team to collaborate closely with the adjacent institutions and other leading life science companies to translate world-class research expertise into novel drugs that will positively impact disease treatment."
LEED Gold certification for the Alexandria Center for Life Science West Tower
The West Tower at the Alexandria Center for Life Science recently earned LEED Gold certification for core and shell from the U.S. Green Building Council (USGBC). LEED, or leadership in Energy & Environmental Design, recognizes best-in-class innovative green building strategies, design and construction practices. The recent recognition of LEED Gold certification from the USGBC acknowledges the West Tower for its excellence in design, energy, consumption, water efficiency and environmental quality, confirming Alexandria's unique expertise in developing Class A assets in urban science and technology campuses at the forefront of sustainability and operational efficiencies.
"We congratulate our unparalleled New York City regional team on this important sustainability achievement," said John Cunningham, Senior Vice President and Regional Market Director at Alexandria Real Estate Equities, Inc. "As the leading REIT uniquely focused on developing sustainable, state-of-the-art laboratory and office facilities, and establishing and unifying strategic clusters, we are committed to continuing to meet the needs of our high-quality client tenants, including providing spaces that are energy and environmentally efficient."
Beyond LEED certifications, Alexandria is committed to providing its client tenants with highly collaborative, innovative and productive 24/7, live/work/play ecosystems. Alexandria FitLab™, the Alexandria Center for Life Science's fully equipped, cutting-edge fitness and training center with on-site wellness coaches, was recently launched as the campus's latest addition to its roster of highly creative campus amenities.
"Our new first-in-class fitness center was purposely designed as a comprehensive wellness initiative to provide our client tenants with the tools to achieve personal health and well-being," said Katie O'Brien, Senior Coordinator of Special Projects, Marketing and Communications at Alexandria Real Estate Equities, Inc. "At Alexandria, we are focused on helping the brightest scientific minds improve their wellness, productivity and creativity, and thereby contributing to their ability to accelerate the development of novel, breakthrough therapies."
The Alexandria Center for Life Science is the first and only world-class commercial science park in New York City. From multinational pharmaceutical companies including Eli Lilly and Company, Pfizer Inc., and Roche, to entrepreneurial, early-stage companies spinning out of Accelerator Corporation, the Alexandria Center for Life Science has become New York City's leading destination for the most innovative life science entities to translate novel discoveries into breakthrough products for patients with significant unmet medical needs.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE) is the largest and leading REIT uniquely focused on collaborative science and technology campuses in urban innovation clusters, 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. Alexandria pioneered this niche in 1994 and has since established a dominant market presence in AAA locations including Greater Boston, the San Francisco Bay Area, San Diego, New York City, Maryland, Seattle, and Research Triangle Park. Alexandria is known for its high-quality and diverse client tenant base, with approximately 52% of total ABR resulting from investment-grade client tenants (a REIT industry-leading percentage). Alexandria has a longstanding and proven track record of developing Class A assets clustered in urban science and technology campuses that provide its client tenants with highly collaborative, 24/7, live/work/play ecosystems, as well as the critical ability to successfully recruit and retain best-in-class talent and enhance productivity. 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.
SOURCE Alexandria Real Estate Equities, Inc.