Alexandria Real Estate Equities, Inc., at the Vanguard of the Life Science Industry, Reports: 1Q22 Net Loss per Share - Diluted of $0.96; 1Q22 FFO per Share - Diluted, As Adjusted, of $2.05
Key highlights |
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Operating results |
1Q22 |
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1Q21 |
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Total revenues: |
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In millions |
$ |
615.1 |
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$ |
479.8 |
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Growth |
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28.2% |
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Net (loss) income attributable to Alexandria's common stockholders – diluted |
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In millions |
$ |
(151.7) |
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$ |
6.1 |
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Per share |
$ |
(0.96) |
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$ |
0.04 |
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Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted |
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In millions |
$ |
324.6 |
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$ |
263.0 |
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Per share |
$ |
2.05 |
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$ |
1.91 |
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Continued strong leasing volume in 1Q22, after a historic year of leasing in 2021
- Strong leasing activity continued in 1Q22 with the second-highest leasing volume in Company history for both total space and development and redevelopment space:
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1Q22 |
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Total leasing activity – RSF |
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2,463,438 |
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Leasing of development and redevelopment space – RSF |
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1,439,696 |
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Lease renewals and re-leasing of space: |
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RSF (included in total leasing activity above) |
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864,077 |
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Rental rate increases |
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32.2% |
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Rental rate increases (cash basis) |
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16.5% |
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Excluding short-term renewals executed to allow Bristol-Myers Squibb Company ("BMS") to expand |
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Rental rate increases |
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39.8% |
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Rental rate increases (cash basis) |
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23.2% |
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- During 1Q22, we executed the following long-term leases:
- 426,927 RSF with BMS, our largest tenant, for the development of BMS's newest innovative cutting-edge research hub focused on cancer as well as immune-mediated and neurodegenerative diseases at the
Alexandria Point mega campus inSan Diego . - 333,929 RSF with Eli Lilly and Company ("Lilly"), our third largest tenant, for the development of Lilly's new state-of-the-art
Institute for Genetic Medicine at15 Necco Street in ourSeaport Innovation District submarket ofGreater Boston .
Continued strong net operating income and internal growth
- Net operating income (cash basis) of
$1.5 billion for 1Q22 annualized, up$301.3 million , or 24.9%, compared to 1Q21 annualized. - 97% of our leases contain contractual annual rent escalations approximating 3%.
- 7.6% and 7.3% (cash basis) same property net operating income increase for 1Q22 over 1Q21.
A REIT industry-leading high-quality tenant roster with high-quality revenues and cash flows, strong margins, and operational excellence
Percentage of total annual rental revenue in effect from investment-grade or |
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50% |
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Occupancy of operating properties in |
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94.7% |
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Occupancy of operating properties in |
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98.6% |
(1) |
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Operating margin |
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71% |
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Adjusted EBITDA margin |
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71% |
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Weighted-average remaining lease term: |
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All tenants |
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7.3 |
years |
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Top 20 tenants |
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10.5 |
years |
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(1) |
Excludes 1.6 million RSF, or 3.9%, of vacancy at recently acquired properties representing lease-up opportunities that are expected to provide incremental annual rental revenue. Refer to "Occupancy" in our Supplemental Information. |
During 1Q22, we completed the sale of a 70% interest in
Continued high demand drives visibility for future growth aggregating
Our highly leased value-creation pipeline of current and key near-term projects that are under construction or that will commence construction in the next six quarters is expected to generate greater than
- 8.0 million RSF of our value-creation projects are either under construction or expected to commence construction in the next six quarters.
- 77% leased/negotiating.
Strong and flexible balance sheet with significant liquidity
- Investment-grade credit ratings ranked in the top 10% among all publicly traded
U.S. REITs as ofMarch 31, 2022 . - Net debt and preferred stock to Adjusted EBITDA of 5.5x and fixed-charge coverage ratio of 5.1x for 1Q22 annualized.
- Total debt and preferred stock to gross assets of 28% as of
March 31, 2022 . -
$5.7 billion liquidity as ofMarch 31, 2022 .
Continued dividend strategy to share growth in cash flows with stockholders
Common stock dividend declared for 1Q22 of
Key items included in operating results
Key items included in net (loss) income attributable to Alexandria's common stockholders: |
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(In millions, except per share amounts) |
Amount |
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Per Share – Diluted |
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1Q22 |
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1Q21 |
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1Q22 |
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1Q21 |
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Unrealized losses on non-real estate investments |
$ (263.4) |
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$ (46.3) |
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$ (1.67) |
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$ (0.34) |
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Significant realized gains on non-real estate investments |
— |
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22.9 |
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— |
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0.17 |
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Gain on sales of real estate |
— |
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2.8 |
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— |
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0.02 |
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Impairment of real estate |
— |
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(5.1) |
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— |
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(0.04) |
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Loss on early extinguishment of debt |
— |
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(67.3) |
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— |
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(0.49) |
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Total |
$ (263.4) |
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$ (93.0) |
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$ (1.67) |
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$ (0.68) |
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External growth and investment in real estate
Alexandria at the vanguard of innovation with a focus on accommodating our tenants' current needs and providing a path for their future growth; high-quality roster of over 1,000 tenants
- During 1Q22, we completed acquisitions in our key life science cluster submarkets aggregating 7.3 million SF and comprising 6.9 million RSF of future development and redevelopment opportunities and 451,760 RSF of operating space for an aggregate purchase price of
$1.8 billion . These acquisitions continue to be primarily focused on future development or redevelopment opportunities to expand our mega campuses and accommodate the future growth of our tenants.
Delivery and commencement of value-creation projects
- During 1Q22, we placed into service development and redevelopment projects aggregating 566,665 RSF across multiple submarkets.
- 82% of construction costs related to active development and redevelopment projects aggregating 5.4 million RSF are under a guaranteed maximum price contract or other contracts. Our budgets also include a landlord contingency that generally ranges between 3% and 5%. Refer to "Definitions and reconciliations" in our Supplemental Information for additional details.
- Annual net operating income (cash basis) is expected to increase by
$48 million upon the burn-off of initial free rent from recently delivered projects. - During 1Q22, we commenced construction on five value-creation projects aggregating 1.1 million RSF, including:
- 345,995 RSF development project that is 97% leased at
15 Necco Street in ourSeaport Innovation District submarket. - 300,010 RSF project at
651 Gateway Boulevard in ourSouth San Francisco submarket, which will be redeveloped into office/laboratory space; and - 192,000 RSF development project that is 100% leased at
9810 Darnestown Road in ourRockville submarket.
Delivery and commencement of value-creation projects (continued)
Value-creation pipeline of new Class A development and redevelopment projects as |
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1Q22 |
Under construction projects 76% leased/negotiating |
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9% |
Pre-leased/negotiating near-term projects expected to commence construction in |
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2% |
Income-producing/potential cash flows/covered land play(1) |
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7% |
Land |
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2% |
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(1) |
Includes projects that have existing buildings that are generating or can generate operating cash flows. Also includes development rights associated with existing operating campuses. |
Balance sheet management
Key metrics as of
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$42.8 billion in total market capitalization. -
$32.5 billion in total equity capitalization, which ranks in the top 10% among all publicly tradedU.S. REITs as ofMarch 31, 2022 . - No debt maturities prior to 2025 as of
April 25, 2022 . - 13.8 years weighted-average remaining term of debt as of
March 31, 2022 .
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1Q22 |
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Goal |
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Quarter |
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Trailing |
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4Q22 |
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Annualized |
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12 Months |
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Annualized |
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Net debt and preferred stock to |
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5.5x |
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5.9x |
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Less than or equal to 5.1x |
Fixed-charge coverage ratio |
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5.1x |
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5.1x |
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Greater than or equal to 5.1x |
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Key capital events
- During 1Q22, our common equity transactions included the following:
- In
January 2022 , we entered into new forward equity sales agreements aggregating$1.7 billion to sell 8.1 million shares of our common stock (including the exercise of an underwriters' option) at a public offering price of$210.00 per share, before underwriting discounts and commissions. - In
March 2022 , we settled a portion of these forward equity sales agreements by issuing 3.2 million shares and received net proceeds of$648.2 million . - We expect to issue 4.8 million shares to settle our remaining outstanding forward equity sales agreements and receive net proceeds of approximately
$1.0 billion in 2022. - In
March 2022 , we entered into new forward equity sales agreements aggregating$350.0 million to sell 1.8 million shares under our ATM program at an average price of$192.42 per share (before underwriting discounts). We expect to settle these forward equity sales agreements in 2022. - As of
March 31, 2022 , the remaining aggregate amount available under our ATM program for future sales of common stock is$650.0 million . - In
February 2022 , we opportunistically issued$1.8 billion of unsecured senior notes payable with a weighted-average interest rate of 3.28% and a weighted-average maturity of 22.0 years. The unsecured senior notes include: -
$800.0 million of 2.95% green unsecured senior notes due 2034; and -
$1.0 billion of 3.55% unsecured senior notes due 2052.
Investments
- As of
March 31, 2022 , our investments aggregated$1.7 billion , including unrealized gains of$532.6 million . - Investment loss of
$240.3 million for the three months endedMarch 31, 2022 included$23.1 million in realized gains and$263.4 million in unrealized losses (due to changes in fair value).
Subsequent event
- In
April 2022 , we repaid two secured notes payable aggregating$195.0 million due in 2024 with an effective interest rate of 3.40% and recognized a loss on early extinguishment of debt of$3.3 million , including a prepayment penalty and the write-off of unamortized loan fees.
Industry and ESG leadership: catalyzing and leading the way for positive change to benefit human health and society
- In
April 2022 ,9880 Campus Point Drive , a 98,000 RSF development on theAlexandria Point mega campus in ourUniversity Town Center submarket, earned LEED Platinum certification, the highest level of certification under theU.S. Green Building Council's Core & Shell rating system. Home to Alexandria GradLabs®, a dynamic proprietary platform purpose-built to accelerate the growth of promising post-seed-stage life science companies, the cutting-edge facility demonstrates high levels of sustainability, including decreased water consumption, significantly reduced energy use, and increased use of recycled resources and materials. - In
March 2022 , Alexandria's executive chairman and founder,Joel S. Marcus , was honored by theNational Medal of Honor Museum Foundation inArlington, Texas during a groundbreaking ceremony in celebration of the historic mission-critical milestone in the development of the national museum.Mr. Marcus , who serves on the foundation's board of directors, attended alongside fellow foundation board members, major museum donors, government officials, and 15 Medal of Honor recipients to commemorate the foundation's remarkable progress toward its goal to build a permanent home where the inspiring stories of our country's Medal of Honor recipients will be brought to life. - In
February 2022 , Alexandria was ranked the #5 most sustainable REIT, as featured in the Barron's article, "10 Real Estate Companies That Are Both Greener and More Profitable." - In
February 2022 , Alexandria earned the first-ever Fitwel Life Science certification for300 Technology Square , located on theAlexandria Technology Square ® mega campus in ourCambridge /Inner Suburbs submarket. The new rigorous, evidence-based Fitwel Life Science Scorecard — developed in partnership with theCenter for Active Design exclusively for Alexandria — is the first healthy building framework dedicated to laboratory facilities, marking another pioneering effort by the company to prioritize tenant health and wellness and further differentiate our world-class laboratory buildings. - In
January 2022 , Alexandria Venture Investments, our strategic venture capital platform, was recognized bySilicon Valley Bank in its "Healthcare Investments and Exits: 2022 Annual Report" as the #1 most active corporate investor in biopharma by new deal volume (2020-2021) for the fifth consecutive year. InMarch 2022 , Alexandria Venture Investments was also recognized by AgFunder in its "2022 AgriFoodTech Investment Report" as one of the five most active U.S. Investors in agrifoodtech by number of companies in which it invested (2021) for the second consecutive year. - Several of Alexandria's facilities and campuses across our regions received awards in honor of excellence in operations, development, and design:
-
200 Technology Square on theAlexandria Technology Square ® mega campus in ourCambridge /Inner Suburbs submarket earned a 2022 BOMA Mid-Atlantic TOBY (The Outstanding Building of the Year) award in the Corporate Category. The TOBY Awards honor and recognize quality in building operations and award excellence in building management. - The Alexandria Center® for AgTech in our Research Triangle submarket was named
Top Flex/Warehouse Development in theTriangle Business Journal 's 2022 SPACE Awards. The annual SPACE Awards recognize the Research Triangle's top real estate developments and transactions. -
685 Gateway Boulevard , an amenities building on ourAlexandria Technology Center ® –Gateway mega campus in ourSouth San Francisco submarket, which is on track to achieve Zero Energy Certification, was awarded one of 10 national awards issued by WoodWorks –Wood Products Council in the 2022 Wood Design Awards, an annual awards program that celebrates excellence in wood building design.
Acquisitions
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Square Footage |
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Acquisitions With Development/Redevelopment Opportunities(1) |
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Property |
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Submarket/Market |
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Date of Purchase |
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Number of |
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Operating Occupancy |
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Future |
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Active |
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Operating With |
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Operating(2) |
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Operating |
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Total(3) |
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Purchase Price |
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Completed in 1Q22: |
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Fenway/ |
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— |
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N/A |
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202,997 |
(4) |
— |
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— |
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— |
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— |
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202,997 |
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$ |
81,119 |
(4) |
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2 |
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100% |
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— |
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— |
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440,130 |
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— |
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— |
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440,130 |
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124,673 |
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1150 El Camino Real |
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1 |
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99 |
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610,000 |
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— |
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431,940 |
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70,000 |
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— |
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680,000 |
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118,000 |
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3301, 3303, 3305, and 3307 |
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Greater San Francisco Bay Area |
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4 |
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100 |
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— |
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— |
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292,013 |
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— |
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— |
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292,013 |
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446,000 |
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2 |
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100 |
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537,000 |
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— |
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8,730 |
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— |
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— |
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545,730 |
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125,000 |
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— |
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N/A |
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869,000 |
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— |
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— |
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— |
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— |
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869,000 |
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87,608 |
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Alexandria Center® for Life |
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Research Triangle/ |
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— |
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N/A |
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1,175,000 |
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— |
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— |
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— |
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— |
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1,175,000 |
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99,428 |
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104 and 108/110/112/114 TW |
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Research Triangle/ |
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4 |
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89 |
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750,000 |
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— |
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69,485 |
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— |
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— |
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819,485 |
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80,000 |
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Intersection Campus |
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9 |
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81 |
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— |
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— |
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998,099 |
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— |
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— |
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998,099 |
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400,400 |
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Other |
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Various |
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Various |
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7 |
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92 |
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473,994 |
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— |
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428,097 |
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381,760 |
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— |
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1,283,851 |
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278,489 |
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29 |
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91% |
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4,617,991 |
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— |
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2,668,494 |
(6) |
451,760 |
(6) |
— |
(6) |
7,306,305 |
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1,840,717 |
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Other targeted acquisitions |
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1,159,283 |
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2022 acquisitions (midpoint) |
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$ |
3,000,000 |
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2022 guidance range |
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(1) |
We expect to provide total estimated costs and related yields for development and redevelopment projects in the future, subsequent to the commencement of construction. |
(2) |
Represents the operating component of our value-creation acquisitions that is not expected to undergo future development or redevelopment. |
(3) |
Represents total square footage upon completion of development or redevelopment of a new Class A property. Square footage presented includes RSF of buildings currently in operation with future development or redevelopment opportunities. We intend to demolish and develop or to redevelop the existing properties upon expiration of the existing in-place leases. Refer to "Definitions and reconciliations" in our Supplemental Information for additional details on value-creation square feet currently included in rental properties. |
(4) |
Represents the incremental purchase price related to the achievement of additional entitlement rights aggregating 202,997 SF at our Alexandria Center® for Life Science – Fenway mega campus. |
(5) |
Includes the acquisition of fee simple interests in the land underlying our recently acquired 108/110/112/ |
(6) |
We expect the acquisitions completed during the three months ended |
Dispositions and Sales of Partial Interest |
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Property |
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Submarket/Market |
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Date of |
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Interest |
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RSF |
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Capitalization |
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Capitalization |
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Sales Price |
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Sales Price |
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Consideration |
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70% |
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432,931 |
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3.6% |
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3.5% |
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$ 713,228 |
(1) |
$ 2,353 |
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$ 413,615 |
(2) |
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Other |
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2Q22 |
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100% |
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TBD |
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300,000 |
– |
400,000 |
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TBD |
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Other |
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TBD |
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TBD |
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TBD |
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286,772 |
– |
1,486,772 |
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TBD |
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2022 guidance range |
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$ 1,300,000 |
– |
$ 2,600,000 |
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(1) |
Represents the contractual sales price for the percentage interest of the property sold by us. |
(2) |
We retained control over the newly formed real estate joint venture and therefore continued to consolidate this property. We accounted for the difference between the consideration received and the book value of the interest sold as an equity transaction, with no gain or loss recognized in earnings. |
Guidance
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The following updated guidance is based on our current view of existing market conditions and assumptions for the year ending |
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2022 Guidance |
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2022 Guidance Midpoint |
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Summary of Key Changes in Guidance |
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As of |
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As of |
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Summary of Key Changes in Sources and Uses of Capital Guidance |
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As of |
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As of |
EPS, FFO per share, and FFO per share, as adjusted |
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See updates below |
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Dispositions and sales of partial interest |
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Same property net operating income increases |
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5.9% to 7.9% |
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5.5% to 7.5% |
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Issuance of unsecured senior notes payable |
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Straight-line rent revenue |
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Repayments of secured notes payable |
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$— |
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Projected 2022 Earnings per Share and Funds From Operations per Share Attributable to |
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As of |
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As of |
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Earnings per share(1) |
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Depreciation and amortization of real estate assets |
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5.65 |
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5.65 |
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Allocation to unvested restricted stock awards |
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(0.02) |
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(0.04) |
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Funds from operations per share(2) |
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Unrealized losses on non-real estate investments |
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1.67 |
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— |
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Loss on early extinguishment of debt(3) |
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0.02 |
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— |
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Allocation to unvested restricted stock awards |
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(0.02) |
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— |
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Other |
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(0.05) |
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— |
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Funds from operations per share, as adjusted(2) |
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Midpoint |
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Key Assumptions |
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Low |
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High |
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Occupancy percentage in |
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95.2% |
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95.8% |
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Lease renewals and re-leasing of space: |
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Rental rate increases |
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30.0% |
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35.0% |
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Rental rate increases (cash basis) |
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18.0% |
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23.0% |
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Same property performance: |
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Net operating income increase |
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5.9% |
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7.9% |
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Net operating income increase (cash basis) |
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6.5% |
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8.5% |
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Straight-line rent revenue |
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$ 154 |
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$ 164 |
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General and administrative expenses |
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$ 168 |
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$ 176 |
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Capitalization of interest |
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$ 269 |
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$ 279 |
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Interest expense |
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$ 90 |
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$ 100 |
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|
|
|
|
|
|
|
|
Key Credit Metrics |
|
2022 Guidance |
Net debt and preferred stock to Adjusted EBITDA – 4Q22 annualized |
|
Less than or equal to 5.1x |
Fixed-charge coverage ratio – 4Q22 annualized |
|
Greater than or equal to 5.1x |
|
|
|
Key Sources and Uses of Capital |
|
Range |
|
Midpoint |
|
Certain |
||||
Sources of capital: |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities after |
|
$ 275 |
|
$ 325 |
|
$ |
300 |
|
|
|
Incremental debt |
|
1,375 |
|
525 |
|
|
950 |
|
See below |
|
Dispositions and sales of partial interest (refer to |
|
1,300 |
|
2,600 |
|
|
1,950 |
|
$ 713 |
|
Common equity |
|
2,250 |
|
3,250 |
|
|
2,750 |
|
$ 2,040 |
(4) |
Total sources of capital |
|
|
|
|
|
$ |
5,950 |
|
|
|
Uses of capital: |
|
|
|
|
|
|
|
|
|
|
Construction (refer to page 46 ) |
|
|
|
|
|
$ |
2,950 |
|
|
|
Acquisitions (refer to page 4 ) |
|
2,500 |
|
3,500 |
|
|
3,000 |
|
$ 1,841 |
|
Total uses of capital |
|
|
|
|
|
$ |
5,950 |
|
|
|
Incremental debt (included above): |
|
|
|
|
|
|
|
|
|
|
Issuance of unsecured senior notes payable |
|
|
|
|
|
$ |
1,800 |
|
$ 1,800 |
|
Repayments of secured notes payable |
|
(195) |
|
(195) |
|
|
(195) |
|
$ (195) |
(3) |
Unsecured senior line of credit, commercial paper, |
|
(230) |
|
(1,080) |
|
|
(655) |
|
|
|
Incremental debt |
|
|
|
$ 525 |
|
$ |
950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes unrealized gains or losses after |
(2) |
Refer to "Funds from operations and funds from operations, as adjusted, attributable to Alexandria's common stockholders" in the "Definitions and reconciliations" of our Supplemental Information for additional details. |
(3) |
Refer to "Subsequent event" on page 3 of this Earnings Press Release for additional details. |
(4) |
Refer to "Key capital events" on page 2 of this Earnings Press Release for additional details. During the three months ended |
Earnings Call Information and About the Company
We will host a conference call on
Additionally, a copy of this Earnings Press Release and Supplemental Information for the first quarter ended
For any questions, please contact
About the Company
***********
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 2022 earnings per share attributable to Alexandria's common stockholders – diluted, 2022 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," "goals," "projects," "estimates," "anticipates," "believes," "expects," "intends," "may," "plans," "seeks," "should," "targets," 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, lower than expected yields, 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, failure to obtain LEED and other healthy building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the
Alexandria®, Lighthouse Design® logo, Building the Future of Life-Changing Innovation®, That's What's in Our DNA®, GradLabs®, Alexandria Center®,
Consolidated Statements of Operations
|
||||||||||
|
||||||||||
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
Income from rentals |
|
$ 612,554 |
|
$ 574,656 |
|
$ 546,527 |
|
$ 508,371 |
|
$ 478,695 |
Other income |
|
2,511 |
|
2,267 |
|
1,232 |
|
1,248 |
|
1,154 |
Total revenues |
|
615,065 |
|
576,923 |
|
547,759 |
|
509,619 |
|
479,849 |
|
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
Rental operations |
|
181,328 |
|
175,717 |
|
165,995 |
|
143,955 |
|
137,888 |
General and administrative |
|
40,931 |
|
41,654 |
|
37,931 |
|
37,880 |
|
33,996 |
Interest |
|
29,440 |
|
34,862 |
|
35,678 |
|
35,158 |
|
36,467 |
Depreciation and amortization |
|
240,659 |
|
239,254 |
|
210,842 |
|
190,052 |
|
180,913 |
Impairment of real estate |
|
— |
|
— |
|
42,620 |
|
4,926 |
|
5,129 |
Loss on early extinguishment of debt |
|
— |
|
— |
|
— |
|
— |
|
67,253 |
Total expenses |
|
492,358 |
|
491,487 |
|
493,066 |
|
411,971 |
|
461,646 |
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of unconsolidated real estate joint ventures |
|
220 |
|
3,018 |
|
3,091 |
|
2,609 |
|
3,537 |
Investment (loss) income |
|
(240,319) |
|
(112,884) |
|
67,084 |
|
304,263 |
|
1,014 |
Gain (loss) on sales of real estate |
|
— |
|
124,226 |
|
(435) |
|
— |
|
2,779 |
Net (loss) income |
|
(117,392) |
|
99,796 |
|
124,433 |
|
404,520 |
|
25,533 |
Net income attributable to noncontrolling interests |
|
(32,177) |
|
(24,901) |
|
(21,286) |
|
(19,436) |
|
(17,412) |
Net (loss) income attributable to |
|
(149,569) |
|
74,895 |
|
103,147 |
|
385,084 |
|
8,121 |
Net income attributable to unvested restricted stock awards |
|
(2,081) |
|
(2,098) |
|
(1,883) |
|
(4,521) |
|
(2,014) |
Net (loss) income attributable to |
|
$ (151,650) |
|
$ 72,797 |
|
$ 101,264 |
|
$ 380,563 |
|
$ 6,107 |
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share attributable to |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ (0.96) |
|
$ 0.47 |
|
$ 0.67 |
|
$ 2.61 |
|
$ 0.04 |
Diluted |
|
$ (0.96) |
|
$ 0.47 |
|
$ 0.67 |
|
$ 2.61 |
|
$ 0.04 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
158,198 |
|
153,464 |
|
150,854 |
|
145,825 |
|
137,319 |
Diluted |
|
158,198 |
|
154,307 |
|
151,561 |
|
146,058 |
|
137,688 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share of common stock |
|
$ 1.15 |
|
$ 1.15 |
|
$ 1.12 |
|
$ 1.12 |
|
$ 1.09 |
Consolidated Balance Sheets
|
||||||||||
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Investments in real estate |
|
$ 27,100,009 |
|
$ 24,980,669 |
|
$ 23,071,514 |
|
$ 21,692,385 |
|
$ 20,253,418 |
Investments in unconsolidated real estate joint ventures |
|
38,456 |
|
38,483 |
|
321,737 |
|
323,622 |
|
325,928 |
Cash and cash equivalents |
|
775,060 |
|
361,348 |
|
325,872 |
|
323,876 |
|
492,184 |
Restricted cash |
|
95,106 |
|
53,879 |
|
42,182 |
|
33,697 |
|
42,219 |
Tenant receivables |
|
7,570 |
|
7,379 |
|
7,749 |
|
6,710 |
|
7,556 |
Deferred rent |
|
881,743 |
|
839,335 |
|
816,219 |
|
781,600 |
|
751,967 |
Deferred leasing costs |
|
484,184 |
|
402,898 |
|
329,952 |
|
321,005 |
|
294,328 |
Investments |
|
1,661,101 |
|
1,876,564 |
|
2,046,878 |
|
1,999,283 |
|
1,641,811 |
Other assets |
|
1,801,027 |
|
1,658,818 |
|
1,596,615 |
|
1,536,672 |
|
1,424,935 |
Total assets |
|
$ 32,844,256 |
|
$ 30,219,373 |
|
$ 28,558,718 |
|
$ 27,018,850 |
|
$ 25,234,346 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities, Noncontrolling Interests, and Equity |
|
|
|
|
|
|
|
|
|
|
Secured notes payable |
|
$ 208,910 |
|
$ 205,198 |
|
$ 198,758 |
|
$ 227,984 |
|
$ 229,406 |
Unsecured senior notes payable |
|
10,094,337 |
|
8,316,678 |
|
8,314,851 |
|
8,313,025 |
|
8,311,512 |
Unsecured senior line of credit and commercial paper |
|
— |
|
269,990 |
|
749,978 |
|
299,990 |
|
— |
Accounts payable, accrued expenses, and other liabilities |
|
2,172,692 |
|
2,210,410 |
|
2,149,450 |
|
1,825,387 |
|
1,750,687 |
Dividends payable |
|
187,701 |
|
183,847 |
|
173,560 |
|
170,647 |
|
160,779 |
Total liabilities |
|
12,663,640 |
|
11,186,123 |
|
11,586,597 |
|
10,837,033 |
|
10,452,384 |
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
9,612 |
|
9,612 |
|
11,681 |
|
11,567 |
|
11,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
1,614 |
|
1,580 |
|
1,532 |
|
1,507 |
|
1,457 |
Additional paid-in capital |
|
16,934,094 |
|
16,195,256 |
|
14,727,735 |
|
14,194,023 |
|
12,994,748 |
Accumulated other comprehensive loss |
|
(5,727) |
|
(7,294) |
|
(6,029) |
|
(4,508) |
|
(5,799) |
|
|
16,929,981 |
|
16,189,542 |
|
14,723,238 |
|
14,191,022 |
|
12,990,406 |
Noncontrolling interests |
|
3,241,023 |
|
2,834,096 |
|
2,237,202 |
|
1,979,228 |
|
1,780,102 |
Total equity |
|
20,171,004 |
|
19,023,638 |
|
16,960,440 |
|
16,170,250 |
|
14,770,508 |
Total liabilities, noncontrolling interests, and equity |
|
$ 32,844,256 |
|
$ 30,219,373 |
|
$ 28,558,718 |
|
$ 27,018,850 |
|
$ 25,234,346 |
Funds From Operations and Funds From Operations per Share
|
||||||||||
|
||||||||||
The following table presents a reconciliation of net income (loss) attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with |
||||||||||
|
||||||||||
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to Alexandria's common stockholders |
|
$ (151,650) |
|
$ 72,797 |
|
$ 101,264 |
|
$ 380,563 |
|
$ 6,107 |
Depreciation and amortization of real estate assets |
|
237,160 |
|
234,979 |
|
205,436 |
|
186,498 |
|
177,720 |
Noncontrolling share of depreciation and amortization from consolidated real estate JVs |
|
(23,681) |
|
(21,265) |
|
(17,871) |
|
(16,301) |
|
(15,443) |
Our share of depreciation and amortization from unconsolidated real estate JVs |
|
955 |
|
3,058 |
|
3,465 |
|
4,135 |
|
3,076 |
(Gain) loss on sales of real estate |
|
— |
|
(124,226) |
|
435 |
|
— |
|
(2,779) |
Impairment of real estate – rental properties |
|
— |
|
— |
|
18,602 |
|
1,754 |
|
5,129 |
Allocation to unvested restricted stock awards |
|
— |
|
— |
|
(1,472) |
|
(2,191) |
|
(201) |
Funds from operations attributable to Alexandria's common stockholders – diluted(1) |
|
62,784 |
|
165,343 |
|
309,859 |
|
554,458 |
|
173,609 |
Unrealized losses (gains) on non-real estate investments |
|
263,433 |
|
139,716 |
|
14,432 |
|
(244,031) |
|
46,251 |
Significant realized gains on non-real estate investments |
|
— |
|
— |
|
(52,427) |
|
(34,773) |
|
(22,919) |
Impairment of real estate |
|
— |
|
— |
|
24,018 |
|
3,172 |
|
— |
Loss on early extinguishment of debt |
|
— |
|
— |
|
— |
|
— |
|
67,253 |
Allocation to unvested restricted stock awards |
|
(1,604) |
|
(1,432) |
|
149 |
|
3,428 |
|
(1,208) |
Funds from operations attributable to Alexandria's common stockholders – diluted, as adjusted |
|
$ 324,613 |
|
$ 303,627 |
|
$ 296,031 |
|
$ 282,254 |
|
$ 262,986 |
|
|
(1) |
Calculated in accordance with standards established by the Nareit Board of Governors. |
Funds From Operations and Funds From Operations per Share (continued)
|
||||||||||
|
||||||||||
The following table presents a reconciliation of net income (loss) per share attributable to Alexandria's common stockholders, the most directly comparable financial measure presented in accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria's common stockholders – diluted, and funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to rounding. |
||||||||||
|
||||||||||
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per share attributable to Alexandria's common stockholders – diluted |
|
$ (0.96) |
|
$ 0.47 |
|
$ 0.67 |
|
$ 2.61 |
|
$ 0.04 |
Depreciation and amortization of real estate assets |
|
1.36 |
|
1.40 |
|
1.26 |
|
1.19 |
|
1.20 |
(Gain) loss on sales of real estate |
|
— |
|
(0.80) |
|
— |
|
— |
|
(0.02) |
Impairment of real estate – rental properties |
|
— |
|
— |
|
0.12 |
|
0.01 |
|
0.04 |
Allocation to unvested restricted stock awards |
|
— |
|
— |
|
(0.01) |
|
(0.01) |
|
— |
Funds from operations per share attributable to Alexandria's common stockholders – diluted |
|
0.40 |
|
1.07 |
|
2.04 |
|
3.80 |
|
1.26 |
Unrealized losses (gains) on non-real estate investments |
|
1.67 |
|
0.91 |
|
0.10 |
|
(1.67) |
|
0.34 |
Significant realized gains on non-real estate investments |
|
— |
|
— |
|
(0.35) |
|
(0.24) |
|
(0.17) |
Impairment of real estate |
|
— |
|
— |
|
0.16 |
|
0.02 |
|
— |
Loss on early extinguishment of debt |
|
— |
|
— |
|
— |
|
— |
|
0.49 |
Allocation to unvested restricted stock awards |
|
(0.02) |
|
(0.01) |
|
— |
|
0.02 |
|
(0.01) |
Funds from operations per share attributable to Alexandria's common stockholders – diluted, as adjusted |
|
$ 2.05 |
|
$ 1.97 |
|
$ 1.95 |
|
$ 1.93 |
|
$ 1.91 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares of common stock outstanding for calculation of: |
|
|
|
|
|
|
|
|
|
|
Earnings per share – diluted |
|
158,198 |
|
154,307 |
|
151,561 |
|
146,058 |
|
137,688 |
Funds from operations, diluted, per share |
|
158,209 |
|
154,307 |
|
151,561 |
|
146,058 |
|
137,688 |
Funds from operations, diluted, as adjusted, per share |
|
158,209 |
|
154,307 |
|
151,561 |
|
146,058 |
|
137,688 |
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