 |  |  |  |  |  |  |  |  |
|
Alexandria Real Estate Equities, Inc. Reports Third Quarter 2008 Operating and Financial ResultsHighlights Third Quarter 2008: - Third Quarter 2008 Funds from Operations (FFO) Per Share (Diluted) of $1.53, up 6%, Compared to Third Quarter 2007 FFO Per Share (Diluted) of $1.45 - Third Quarter 2008 Total Revenues up 13%, FFO Available to Common Stockholders up 14%, Compared to Third Quarter 2007 - Third Quarter 2008 Earnings Per Share from Continuing Operations (Diluted) of $0.67 - Third Quarter 2008 GAAP Same Property Revenues Less Operating Expenses up 5.6% - Executed 41 Leases for 618,000 Rentable Square Feet in Third Quarter 2008; Executed Leases for 1.7 Million Rentable Square Feet in Year-to-Date 2008, up 43% over 2007 - Third Quarter 2008 GAAP Rental Rate Increase of 8.2% on Renewed/Released Space; Year-to-Date 2008 GAAP Rental Rate Increase of 14.9% on Renewed/Released Space - Completed Redevelopment of Multiple Spaces at Seven Properties Aggregating 116,000 Rentable Square Feet - Leased 513,000 Square Feet of Redevelopment and Development Space Year-to-Date 2008 - Executed 106,000 Square Foot Lease with Gilead Sciences, Inc. in Seattle, Washington - Executed 47,000 Square Foot Lease with Novartis Institutes for Biomedical Research, Inc. in Cambridge, Massachusetts - Third Quarter 2008 Occupancy Increases to 95.6% - Third Quarter 2008 Operating Margins Steady at 74% PASADENA, Calif., Oct. 30 /PRNewswire-FirstCall/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced operating and financial results for the third quarter ended September 30, 2008. For the third quarter of 2008, we reported total revenues of $115,280,000 and FFO available to common stockholders of $48,832,000, or $1.53 per share (diluted), compared to total revenues of $102,107,000 and FFO available to common stockholders of $42,723,000, or $1.45 per share (diluted), for the third quarter of 2007. Comparing the third quarter of 2008 to the third quarter of 2007, total revenues increased 13%, FFO available to common stockholders increased 14% and FFO per share (diluted) increased 6%. For the nine months ended September 30, 2008, we reported total revenues of $335,293,000 and FFO available to common stockholders of $143,862,000, or $4.51 per share (diluted), before non-cash impairment charges, compared to total revenues of $290,662,000 and FFO available to common stockholders of $124,675,000, or $4.24 per share (diluted), before a preferred stock redemption charge, for the nine months ended September 30, 2007. Comparing the nine months ended September 30, 2008 to the nine months ended September 30, 2007, total revenues increased 15%, FFO available to common stockholders and FFO per share (diluted) increased 15% and 6%, respectively, before non-cash impairment and preferred stock redemption charges. In the first quarter of 2008, we incurred non-cash impairment charges aggregating $6,635,000, or $0.21 per share (diluted), related to assets "held for sale" and certain investments, and in the first quarter of 2007 we recognized a preferred stock redemption charge of $2,799,000, or $0.10 per share (diluted). FFO is a non-GAAP measure widely used by publicly traded real estate investment trusts. A reconciliation of GAAP net income available to common stockholders to FFO available to common stockholders and FFO available to common stockholders after supplemental adjustments on both an aggregate and per share (diluted) basis, is included in the financial information accompanying this press release. The primary reconciling item between GAAP net income available to common stockholders and FFO available to common stockholders is depreciation and amortization expense. Depreciation and amortization expense for the three months ended September 30, 2008 and 2007 was $27,447,000 and $24,194,000, respectively. Depreciation and amortization expense for the nine months ended September 30, 2008 and 2007 was $80,260,000 and $70,366,000, respectively. Net income available to common stockholders for the third quarter of 2008 was $21,510,000, or $0.67 per share (diluted), compared to net income available to common stockholders of $20,186,000, or $0.68 per share (diluted), for the third quarter of 2007. Net income available to common stockholders for the third quarter of 2007 included a gain of $1,614,000 on the sale of one property and four land parcels. Excluding gains on sales of properties, net income available to common stockholders for the third quarter of 2007 was $18,572,000, or $0.63 per share (diluted), for the third quarter of 2007. Net income available to common stockholders for the nine months ended September 30, 2008 was $77,573,000, or $2.43 per share (diluted), compared to net income available to common stockholders of $56,628,000, or $1.93 per share (diluted), for the nine months ended September 30, 2007. Net income available to common stockholders for the nine months ended September 30, 2008 included aggregate gains of $20,395,000 on sales of seven properties and non-cash impairment charges aggregating $6,635,000 related to assets "held for sale" and certain investments. Net income available to common stockholders for the nine months ended September 30, 2007 included a gain on sales of three properties and four land parcels of $5,075,000 and a preferred stock redemption charge of $2,799,000. Excluding gains on sales of properties and non-cash impairment and preferred stock redemption charges, net income available to common stockholders for the nine months ended September 30, 2008 was $63,813,000, or $2.00 per share (diluted), compared to net income available to common stockholders of $54,352,000, or $1.85 per share (diluted), for the nine months ended September 30, 2007. For the third quarter of 2008, we executed a total of 41 leases for approximately 618,000 rentable square feet of space at 26 different properties (excluding month-to-month leases). Of this total, approximately 211,000 rentable square feet related to new or renewal leases of previously leased space and approximately 407,000 rentable square feet related to developed, redeveloped or previously vacant space. Of the 407,000 rentable square feet, approximately 310,000 rentable square feet were delivered from our development or redevelopment programs, with the remaining approximately 97,000 rentable square feet related to previously vacant space. Rental rates for these new or renewal leases were on average approximately 8.2% higher (on a GAAP basis) than rental rates for expiring leases. For the nine months ended September 30, 2008, we executed a total of 114 leases for approximately 1,696,000 square feet of space at 56 different properties (excluding month-to-month leases). Of this total, approximately 916,000 square feet were for new or renewal leases related to previously leased space and approximately 780,000 square feet were for developed, redeveloped, or previously vacant space. Of the 780,000 square feet, approximately 513,000 square feet were delivered from our redevelopment or development programs, with the remaining approximately 267,000 square feet for previously vacant space. Rental rates for new or renewal leases were on average approximately 14.9% higher (on a GAAP basis) than rental rates for expiring leases. In August 2008, we announced that Pfizer Inc. entered into a long-term lease for approximately 100,000 square feet, with an option for an additional 50,000 square feet. Pfizer Inc. will locate its Biotherapeutics and Bioinnovation Center in The Alexandria Center for Science and Technology at Mission Bay, San Francisco, California. In October 2008, we announced that Gilead Sciences, Inc. entered into a long-term lease for approximately 106,000 square feet in Seattle, Washington. As of September 30, 2008, approximately 89% of our leases (on a rentable square footage basis) were triple net leases, requiring tenants to pay substantially all real estate taxes and insurance, common area and other operating expenses, including increases thereto. In addition, as of September 30, 2008, approximately 8% of our leases (on a rentable square footage basis) required the tenants to pay a majority of operating expenses. Additionally, as of September 30, 2008, approximately 92% of our leases (on a rentable square footage basis) provided for the recapture of certain capital expenditures and approximately 94% of our leases (on a rentable square footage basis) contained effective annual rent escalations that were either fixed or based on the consumer price index or another index. Based on our current view of existing market conditions and certain current assumptions, our updated guidance for FFO per share (diluted) and earnings per share (diluted) is as follows:
2008
---------
FFO per share (diluted) (1) $5.85 (1)
Earnings per share (diluted) (2) $3.10 (2)
Non-cash impairment charges recognized
in the first quarter of 2008 $0.21
(1) Includes non-cash impairment charges
aggregating $6,635,000, or $0.21 per share
(diluted), related to assets "held for sale" as
of September 30, 2008 and certain investments.
Our guidance for 2008 FFO per share (diluted)
after supplemental adjustments for the non-cash
impairment charges is $6.06.
(2) Includes non-cash impairment charges
aggregating $6,635,000 and gains on sales of
property aggregating $20,395,000.
Alexandria Real Estate Equities, Inc., Landlord of Choice to the Life Science Industry(R), is the largest owner and pre-eminent first-in-class international real estate investment trust focused principally on science-driven cluster formation through the ownership, operation, management, redevelopment, selective development and acquisition of properties containing office/laboratory space. Alexandria is the leading provider of high-quality environmentally sustainable real estate, technical infrastructure, services and capital to the broad and diverse life science industry. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, product, service, and translational entities, as well as government agencies. Alexandria's operating platform is based on the principle of "clustering", with assets and operations located in key life science markets. Our asset base approximates 13.3 million rentable square feet consisting of 160 properties approximating 11.7 million rentable square feet (including spaces undergoing active redevelopment) and properties undergoing ground-up development approximating 1.6 million rentable square feet. This press release contains forward-looking statements, including earnings guidance, within the meaning of the federal securities laws. Actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained in our Annual Report on Form 10-K and our other periodic reports filed with the Securities and Exchange Commission. (Tables follow)
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- ---------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
Income statement data
Total revenues $ 115,280 $ 102,107 $ 335,293 $ 290,662
Expenses
Rental operations 29,749 24,944 85,666 70,390
General and
administrative 8,588 8,310 25,827 24,192
Interest 19,948 23,659 59,925 63,502
Depreciation and
amortization 27,447 23,726 80,122 68,780
Non-cash
impairment on
investments − − 1,985 −
---------- ---------- ---------- ----------
85,732 80,639 253,525 226,864
Minority interest 929 909 2,828 2,718
---------- ---------- ---------- ----------
Income from
continuing
operations 28,619 20,559 78,940 61,080
Income from
discontinued
operations, net (19) 2,341 15,769 7,652
---------- ---------- ---------- ----------
Net income 28,600 22,900 94,709 68,732
Dividends on
preferred stock 7,090 2,714 17,136 9,305
Preferred stock
redemption charge − − − 2,799
---------- ---------- ---------- ----------
Net income available
to common
stockholders $ 21,510 $ 20,186 $ 77,573 $ 56,628
========== ========== ========== ==========
Weighted average
shares of common
stock outstanding
Basic 31,694,711 29,258,184 31,619,163 29,068,793
========== ========== ========== ==========
Diluted 31,959,890 29,507,316 31,906,627 29,406,687
========== ========== ========== ==========
Earnings per share
- basic
Continuing
operations (net
of preferred
stock dividends
and preferred
stock redemption
charge) $ 0.68 $ 0.61 $ 1.95 $ 1.69
Discontinued
operations, net − 0.08 0.50 0.26
---------- ---------- ---------- ----------
Earnings per
share - basic $ 0.68 $ 0.69 $ 2.45 $ 1.95
========== ========== ========== ==========
Earnings per share
- diluted
Continuing
operations (net
of preferred
stock dividends
and preferred
stock redemption
charge) $ 0.67 $ 0.60 $ 1.94 $ 1.67
Discontinued
operations, net − 0.08 0.49 0.26
---------- ---------- ---------- ----------
Earnings per
share - diluted $ 0.67 $ 0.68 $ 2.43 $ 1.93
========== ========== ========== ==========
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Financial Information
(Unaudited)
Funds from Operations Generally accepted accounting principles ("GAAP") basis accounting for real estate assets utilizes historical cost accounting and assumes real estate values diminish over time. In an effort to overcome the difference between real estate values and historical cost accounting for real estate assets, the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") established the measurement tool of Funds From Operations ("FFO"). Since its introduction, FFO has become a widely used non-GAAP financial measure among real estate investment trusts ("REITs"). We believe that FFO is helpful to investors as an additional measure of the performance of an equity REIT. We compute FFO in accordance with standards established by the Board of Governors of NAREIT in its April 2002 White Paper (the "White Paper") and related implementation guidance, which may differ from the methodology for calculating FFO utilized by other equity REITs, and, accordingly, may not be comparable to such other REITs. The White Paper defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We also present FFO after supplemental adjustments which excludes non-cash impairment and preferred stock redemption charges. FFO after supplemental adjustments differs from FFO established by NAREIT and may not be comparable to that of other REITs. We believe FFO after supplemental adjustments provides a meaningful supplemental financial measure. Neither FFO nor FFO after supplemental adjustments should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of financial performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. The following tables present 1) a reconciliation of net income available to common stockholders, the most directly comparable GAAP financial measure to FFO, to funds from operations available to common stockholders after supplemental adjustments and 2) a reconciliation of earnings per share (diluted) to FFO per share (diluted) after supplemental adjustments, in each case, for the three and nine months ended September 30, 2008 and 2007 (in thousands, except per share data):
Reconciliation of net income
available to common stockholders
to funds from operations available
to common stockholders after
supplemental adjustments Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2008 30, 2007 30, 2008 30, 2007
-------- -------- --------- ---------
Net income available
to common stockholders $ 21,510 $ 20,186 $ 77,573 $ 56,628
Add: Depreciation and
amortization (1) 27,447 24,194 80,260 70,366
Add: Minority
interest 929 909 2,828 2,718
Subtract: Gain on
sales of property (2) − (1,614) (20,395) (5,075)
Subtract: FFO allocable
to minority interest (1,054) (952) (3,039) (2,761)
-------- -------- --------- ---------
Funds from operations
available to common
stockholders 48,832 42,723 137,227 121,876
Add: Preferred stock
redemption charge (3) − − − 2,799
Add: Non-cash
impairment charges (4) − − 6,635 −
-------- -------- --------- ---------
Funds from operations
available to common
stockholders after
supplemental adjustments $ 48,832 $ 42,723 $ 143,862 $ 124,675
======== ======== ========= =========
FFO per share (diluted) after
Supplemental adjustments
Basic $ 1.54 $ 1.46 $ 4.55 $ 4.29
======== ======== ========= =========
Diluted $ 1.53 $ 1.45 $ 4.51 $ 4.24
======== ======== ========= =========
Reconciliation of earnings
per share (diluted) to FFO
per share (diluted) after
supplemental adjustments
Earnings per share (diluted) $ 0.67 $ 0.68 $ 2.43 $ 1.93
Depreciation and
amortization (1) 0.86 0.82 2.52 2.39
Minority interest 0.03 0.03 0.09 0.09
Gain on sales of
property (2) − (0.05) (0.64) (0.17)
FFO allocable to
minority interest (0.03) (0.03) (0.10) (0.10)
-------- -------- --------- ---------
FFO per share (diluted) 1.53 1.45 4.30 4.14
Preferred stock
redemption charge (3) − − − 0.10
Non-cash impairment
charges (4) − − 0.21 −
-------- -------- --------- ---------
FFO per share (diluted)
after supplemental
adjustments $ 1.53 $ 1.45 $ 4.51 $ 4.24
======== ======== ========= =========
(1) Includes depreciation and amortization for assets "held for sale"
reflected as discontinued operations (for the periods prior to when
such assets were classified as "held for sale").
(2) Gain on sales of property relates to the disposition of one property
during the second quarter 2008, six properties during the first
quarter 2008, four land parcels and one property during the third
quarter 2007, one property during the second quarter 2007, and one
property during the first quarter 2007. Gain on sales of property is
included in the income statement in income from discontinued
operations, net.
(3) During the first quarter of 2007, we redeemed our 9.10% series B
cumulative redeemable preferred stock. Accordingly, in compliance
with FASB Emerging Issues Task Force D-42 ("EITF Topic D-42"), we
recorded a charge of $2,799,000, or $0.10 per share (diluted), in the
first quarter of 2007 for costs related to the redemption of our
series B preferred stock.
(4) In March 2008, we recognized aggregate non-cash impairment charges of
approximately $1,985,000 for other-than-temporary declines in the
fair value of certain investments and non-cash impairment charges of
approximately $4,650,000 on two properties "held for sale". One
property was an industrial building located in a suburban submarket
south of Boston and the other property was an office building located
in the San Diego market. The non-cash impairment charges recognized
in March 2008 on these two properties are classified in income from
discontinued operations, net.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Quarterly Supplemental Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
For the Three Months Ended
Operational data 9/30/2008 6/30/2008 3/31/2008 12/31/2007 9/30/2007
---------- ---------- ---------- ---------- ----------
Rental income $85,829 $83,176 $82,156 $81,695 $76,970
Tenant recoveries 26,803 23,986 24,553 22,344 21,420
Other income 2,648 2,892 3,250 3,965 3,717
---------- ---------- ---------- ---------- ----------
Total revenues
(continuing
operations) (a) $115,280 $110,054 $109,959 $108,004 $102,107
========== ========== ========== ========== ==========
Funds from operations
per share (diluted)
after supplemental
adjustments (b) $1.53 $1.51 $1.48 $1.46 $1.45
Dividends per share on
common stock $0.80 $0.80 $0.78 $0.78 $0.76
Dividend payout ratio
(common stock) (c) 52.7% 53.5% 53.2% 53.9% 56.3%
Straight-line rent $3,274 $3,437 $3,015 $4,615 $4,335
Capitalized
Interest $17,646(d) $18,437 $17,262 $16,609 $15,035
Number of
properties (e)
Acquired/added/
completed
during period − 2 − 2 13
Sold/transferred (f) − (1) (7) (3) (1)
At end of period 160 160 159 166 167
Rentable square feet (e)
Acquired/added/
completed
during period − 60,000 − 404,986 988,030
Sold/transferred (f) − (49,437) (475,976) (92,927) (37,000)
At end of period 11,692,188 11,692,188 11,681,625 12,157,601 11,845,542
As of
Other data 9/30/2008 6/30/2008 3/31/2008 12/31/2007 9/30/2007
---------- ---------- ---------- ---------- ----------
Number of shares of
common stock
outstanding 31,839,622 31,773,117 31,673,359 31,603,344 31,243,448
Closing price of
common stock $112.50 $97.34 $92.72 $101.67 $96.26
Debt to total market
capitalization(g)
Total debt $2,804,551 $2,693,333 $2,625,852 $2,787,904 $2,502,832
Less minority
interest share
of debt (42,384) (40,762) (39,838) (39,320) (22,102)
---------- ---------- ---------- ---------- ----------
Our share of
total debt 2,762,167 2,652,571 2,586,014 2,748,584 2,480,730
Preferred stock 368,489 377,616 352,127 136,845 130,156
Common stock market
capitalization 3,581,957 3,092,795 2,936,754 3,213,112 3,007,494
---------- ---------- ---------- ---------- ----------
Total market
capitalization $6,712,613 $6,122,982 $5,874,895 $6,098,541 $5,618,380
========== ========== ========== ========== ==========
Debt to total market
capitalization 41.1% 43.3% 44.0% 45.1% 44.2%
(a) The historical results above exclude the results of assets "held for
sale" which have been classified as discontinued operations.
(b) See page 5 for a reconciliation of earnings per share (diluted) to FFO
per share (diluted) and FFO per share (diluted) after supplemental
adjustments.
(c) Dividend payout ratio (common stock) is the ratio of the absolute
dollar amount of dividends on our common stock (common stock shares
outstanding on the respective record date multiplied by the related
dividend per share) to funds from operations after supplemental
adjustments for the respective quarter.
(d) As of September 30, 2008, properties undergoing development and
redevelopment and land held for development for which capitalization
of interest is required pursuant to Statement of Financial Accounting
Standards No. 34, "Capitalization of Interest Cost" ("SFAS 34"),
approximated $1.4 billion. This amount is classified as properties
undergoing development and redevelopment and land held for development
on our balance sheet. As of September 30, 2008, the weighted average
interest rate used in the calculation of capitalized interest required
pursuant to SFAS 34 was approximately 5.50%. SFAS 34 requires the
interest rate for capitalization to be based on applicable interest
costs related to borrowings outstanding during the period, including
the impact of interest rate swap agreements, debt premiums/discounts
and amortization of loan fees.
(e) Includes properties "held for sale" during the applicable periods such
assets were "held for sale." As of September 30, 2008, one property
with approximately 24,867 rentable square feet was classified as "held
for sale."
(f) During the second quarter of 2008, we sold one asset located in the
San Diego market. During the first quarter of 2008, we sold six
properties and transferred one property from operating assets to
embedded future development opportunities. During the fourth quarter
of 2007, we sold one property and transferred two properties from
operating assets to embedded future development opportunities. During
the third quarter of 2007, we sold one property located in the New
Jersey/Suburban Philadelphia market and four land parcels to the
Massachusetts Institute of Technology.
(g) Debt to total market capitalization is the ratio of our share of total
debt (secured notes payable, unsecured line of credit and unsecured
term loan and unsecured convertible notes) to total market
capitalization. Total market capitalization is equal to outstanding
shares of series C preferred stock and common stock multiplied by the
related closing price at the end of each period presented, plus series
D convertible preferred stock at liquidation value, plus our share of
total debt.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2008 2007
----------- -----------
(Unaudited)
Assets
Rental properties, net $3,199,755 $3,146,915
Properties undergoing development
and redevelopment and
land held for development 1,364,705 1,143,302
Cash and cash equivalents 15,391 8,030
Tenant security deposits and other
restricted cash 68,040 51,911
Tenant receivables 6,849 6,759
Deferred rent 87,097 81,496
Investments 72,509 84,322
Other assets 118,794 119,359
----------- -----------
Total assets $ 4,933,140 $ 4,642,094
=========== ===========
Liabilities and Stockholders' Equity
Secured notes payable $1,078,551 $1,212,904
Unsecured line of credit and
unsecured term loan 1,266,000 1,115,000
Unsecured convertible notes 460,000 460,000
Accounts payable, accrued expenses
and tenant security deposits 280,822 247,289
Dividends payable 31,939 27,575
----------- -----------
Total liabilities 3,117,312 3,062,768
Minority interest 75,120 75,506
Stockholders' equity:
Series C preferred stock 129,638 129,638
Series D convertible preferred stock 250,000 −
Common stock 318 316
Additional paid-in capital 1,377,280 1,365,773
Accumulated other comprehensive
(loss) income (16,528) 8,093
----------- -----------
Total stockholders' equity 1,740,708 1,503,820
----------- -----------
Total liabilities and
stockholders' equity $ 4,933,140 $ 4,642,094
=========== ===========
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Debt
September 30, 2008
(Dollars in thousands)
(Unaudited)
Principal Maturities / Rates
Secured Debt Unsecured Debt
--------------------------------- --------------
Weighted
Average
Year Amount Interest Rate Amount
---------- ----------- -------------- -----------
2008 $ 2,143 5.72% (1) $ −
2009 263,956 (2) 5.72 (3)(4) −
2010 91,123 5.91 (3) 516,000 (5)
2011 181,911 5.77 (3) 750,000 (5)
2012 36,903 5.96 (3) 460,000 (6)
Thereafter 502,515 (2) 5.89 (3)(4) −
----------- -----------
Total $ 1,078,551 (2) $ 1,726,000
=========== ===========
Secured and Unsecured Debt Analysis
Percentage Weighted Weighted
of Average Average
Balance Balance Interest Rate (7) Maturity
----------- ---------- ----------------- ---------
Secured Debt $ 1,078,551 38.5% 5.72% 4.1 Years
Unsecured Debt 1,726,000 61.5 4.88 2.8 Years
----------- ---------- ----------------- ---------
Total Debt $ 2,804,551 100.0% 5.21% 3.3 Years
=========== ========== ================= =========
Fixed and Floating Rate Debt Analysis
Percentage Weighted Weighted
of Average Average
Balance Balance Interest Rate (7) Maturity
----------- ---------- ----------------- ---------
Fixed Rate Debt $ 1,247,606 44.5% 5.13% 4.5 Years
Floating Rate
Debt - Hedged 817,100 29.1 6.00 2.9 Years
Floating Rate
Debt - Unhedged 739,845 26.4 4.45 1.8 Years
----------- ---------- ----------------- ---------
Total Debt $ 2,804,551 100.0% 5.21% 3.3 Years
=========== ========== ================= =========
(1) The weighted average interest rate is calculated based on outstanding
debt as of September 30, 2008.
(2) Includes minority interests' share of scheduled principal maturities
of approximately $42.4 million, of which approximately $20.4 million
and $21.1 million mature in 2009 and thereafter, respectively.
(3) The weighted average interest rate is calculated based on outstanding
debt as of December 31st of the year immediately preceding the year
presented.
(4) Our borrowing capacity and financial covenants under our unsecured
line of credit and unsecured term loan are not directly dependent or
variable based upon our stock price. Interest on outstanding
borrowings under our unsecured credit facility is based upon LIBOR
plus 1.00% to 1.45% depending on our leverage or the higher of the
Federal Funds rate plus 0.50% or Bank of America's ("BofA") prime rate
plus 0.0% to 0.25% depending on our leverage. As of September 30,
2008, one-month LIBOR was 3.93%, the Federal Funds rate was 2.00%, and
BofA's prime rate was 5.00%. The Federal Funds Rate and BofA's
prime rate decreased to 1.50% and 4.50%, respectively, effective
October 8, 2008. In October 2008, we elected prime based rates for a
portion of our unhedged variable rate debt when the prime based rate
was lower than the LIBOR based rate.
(5) The unsecured line of credit matures in October 2010 and may be
extended at our sole option for an additional one year period to
October 2011. The unsecured term loan matures in October 2011 and may
be extended at our sole option for an additional one year period to
October 2012.
(6) On or after January 15, 2012, we have the right to redeem our 3.70%
unsecured convertible notes, in whole or in part, at any time from
time to time, for cash equal to 100% of the principal amounts of the
notes to be redeemed plus any accrued and unpaid interest to, but
excluding, the redemption date. Holders of the notes may require us
to repurchase their notes, in whole or in part, on January 15, 2012,
2017 and 2022 for cash equal to 100% of the principal amount of the
notes to be purchased plus any accrued and unpaid interest to, but
excluding, the repurchase date. Additional information regarding our
unsecured convertible notes is contained in our Form 10-K filed with
the Securities and Exchange Commission.
(7) Represents the weighted average contractual interest rate plus the
impact of debt premiums/discounts and our interest rate swap
agreements. The weighted average interest rate excludes bank fees and
amortization of loan fees. See page 9 for further details of our
interest rate swap agreements.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Interest Rate Swap Agreements
September 30, 2008
(Dollars in thousands)
(Unaudited)
Interest Effective at
Transaction Effective Termination Pay Notional September 30,
Dates Dates Dates Rates (1) Amounts 2008
----------- --------- ----------- --------- -------- -------------
June 2006 June 30, September 30,
2006 2009 5.299% $125,000 $125,000
December 2003 December October 31,
29, 2006 2008 5.090 50,000 50,000
December 2005 December November
29, 2006 30, 2009 4.730 50,000 50,000
December 2005 December November
29, 2006 30, 2009 4.740 50,000 50,000
December 2006 December March 31,
29, 2006 2014 4.990 50,000 50,000
December 2006 January 2, January 3,
2007 2011 5.003 28,500 28,500
December 2006 June 29, October 31,
2007 2008 4.920 50,000 50,000
October 2007 October 31, September
2007 30, 2012 4.546 50,000 50,000
October 2007 October 31, September
2007 30, 2013 4.642 50,000 50,000
May 2005 November November
30, 2007 28, 2008 4.460 25,000 25,000
December 2005 January 2, December
2008 31, 2010 4.768 50,000 50,000
February 2008 February December 1,
7, 2008 2008 2.640 38,600 38,600
May 2005 June 30, June 30,
2008 2009 4.509 50,000 50,000
June 2006 June 30, June 30,
2008 2010 5.325 50,000 50,000
June 2006 June 30, June 30,
2008 2010 5.325 50,000 50,000
October 2007 July 1, March 31,
2008 2013 4.622 25,000 25,000
October 2007 July 1, March 31,
2008 2013 4.625 25,000 25,000
June 2006 October 31, December
2008 31, 2010 5.340 50,000 −
June 2006 October 31, December
2008 31, 2010 5.347 50,000 −
May 2005 November November
28, 2008 30, 2009 4.615 25,000 −
December 2006 November March 31,
30, 2009 2014 5.015 75,000 −
December 2006 November March 31,
30, 2009 2014 5.023 75,000 −
December 2006 December October 31,
31, 2010 2012 5.015 100,000 −
--------
Total $817,100
========
(1) The interest pay rates represent the interest rate we will pay for one
month LIBOR under the respective interest rate swap agreement. These
rates do not include any spread in addition to one month LIBOR that is
due monthly as interest expense.
In October 2008, we entered into three additional interest rate swap
agreements with notional amounts totaling $275 million at fixed interest
pay rates ranging from 2.750% to 3.119%. The swap agreements are
effective in October 2008 and September 2009 and have termination dates
ranging from December 2009 to January 2011.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Properties
(Dollars in thousands)
(Unaudited)
September 30, 2008
-----------------------------------------------
Rentable Square Feet
Number of --------------------
Markets Properties Operating Redevelopment Total
------------------------- ---------- --------- ------------- ---------
California - Los Angeles
Metro 1 31,343 − 31,343
California - San Diego 34 1,501,769 208,293 1,710,062
California - San
Francisco Bay 17 1,430,981 47,679 1,478,660
Eastern Massachusetts 38 3,122,518 310,776 3,433,294
International - Canada 4 342,394 − 342,394
New Jersey/Suburban
Philadelphia 8 441,504 − 441,504
Southeast 13 612,330 75,090 687,420
Suburban Washington, D.C. 31 2,430,241 66,635 2,496,876
Washington - Seattle 13 1,045,768 − 1,045,768
----- ---------- ------- ----------
Total Properties
(Continuing Operations) 159 10,958,848 708,473 11,667,321
===== ========== ======= ==========
June 30,
September 30, 2008 2008
------------------------------ -------------
Annualized Occupancy Occupancy
Markets Base Rent(1) Percentage(1)(2) Percentage(3)
-------------------------- ------------ ---------------- -------------
California - Los Angeles
Metro $820 88.3% 70.8%
California - San Diego 43,669 94.2 94.1
California - San Francisco
Bay 56,122 98.7 97.6
Eastern Massachusetts 114,403 97.1 97.0
International - Canada 9,093 100.0 100.0
New Jersey/Suburban
Philadelphia 8,341 87.5 87.5
Southeast 11,633 94.5 94.2
Suburban Washington, D.C. 49,425 92.4 91.0
Washington - Seattle 32,004 99.0 98.7
-------- ------ ------
Total Properties (Continuing
Operations) $325,510 95.6% 95.0%
======== ====== ======
(1) Excludes spaces at properties totaling approximately 708,473 rentable
square feet undergoing a permanent change in use to office/laboratory
space through redevelopment and one property with approximately 24,867
rentable square feet that is classified as "held for sale".
(2) Including spaces undergoing a permanent change in use to
office/laboratory space through redevelopment, occupancy as of
September 30, 2008 was 89.8%. See page 16 for additional information
on our redevelopment program.
(3) Excludes spaces at properties totaling approximately 789,939 rentable
square feet undergoing a permanent change in use to office/laboratory
space through redevelopment and one property with approximately 24,867
rentable square feet that is classified as "held for sale". Including
spaces undergoing a permanent change in use to office/laboratory space
through redevelopment, occupancy as of June 30, 2008 was 88.6%. See
page 16 for additional information on our redevelopment program.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Same Property Comparisons
(Dollars in thousands)
(Unaudited)
GAAP Basis (1) Cash Basis (1)
Quarter Ended Quarter Ended
------------------------------ -----------------------------
9/30/2008 9/30/2007 % Change 9/30/2008 9/30/2007 % Change
--------- --------- -------- --------- --------- --------
Revenue (2) $ 89,166 $ 83,839 6.4% $ 87,699 $ 80,635 8.8%
Operating
expenses 23,428 21,611 8.4 23,428 21,611 8.4
--------- --------- -------- --------- --------- --------
Revenue less
operating
expenses $ 65,738 $ 62,228 5.6% $ 64,271 $ 59,024 8.9%
========= ========= ======== ========= ========= =======
GAAP Basis (1) Cash Basis (1)
Nine Months Ended Nine Months Ended
------------------------------ -----------------------------
9/30/2008 9/30/2007 % Change 9/30/2008 9/30/2007 % Change
--------- --------- -------- --------- --------- --------
Revenue (2) $ 246,875 $ 236,504 4.4% $ 242,709 $ 226,314 7.2%
Operating
expenses 64,357 59,539 8.1 64,357 59,539 8.1
--------- --------- -------- --------- --------- --------
Revenue less
operating
expenses $ 182,518 $ 176,965 3.1% $ 178,352 $ 166,775 6.9%
========= ========= ======== ========= ========= =======
NOTE: This summary represents operating data for all properties that were
fully operating for the entire periods presented for the quarter periods
(the "Third Quarter Same Properties") and for the Nine Month periods (the
"Nine Months Same Properties"). Same property occupancy for the quarters
ended September 30, 2008 and 2007 was 96.0% and 95.1%, respectively. Same
Property Occupancy for the nine months ended September 30, 2008 and 2007
was 95.9% and 95.7%, respectively. Properties undergoing redevelopment are
excluded from same property results.
(1) Revenue less operating expenses computed in accordance with GAAP is
total revenue associated with the Third Quarter Same Properties and
Nine Months Same Properties, as applicable (excluding lease
termination fees, if any), less property operating expenses. Under
GAAP, rental revenue is recognized on a straight-line basis over the
respective lease terms. Revenue less operating expenses on a cash
basis is total revenue associated with the Third Quarter Same
Properties and Nine Months Same Properties (excluding lease
termination fees, if any), less property operating expenses, adjusted
to exclude the effect of straight-line rent adjustments required by
GAAP. Straight-line rent adjustments for the quarters ended September
30, 2008 and 2007 for the Third Quarter Same Properties were
$1,467,000 and $3,204,000, respectively. Straight-line rent
adjustments for the nine months ended September 30, 2008 and 2007 for
the Nine Months Same Properties were $4,166,000 and $10,190,000,
respectively. We believe that revenue less operating expenses on a
cash basis is helpful to investors as an additional measure of
operating performance because it eliminates straight-line rent
adjustments to rental revenue.
(2) Fees received from tenants in connection with termination of their
leases, if any, are excluded from revenue in the Summary of Same
Property Comparisons. As of September 30, 2008, approximately 89% of
our leases (on a square footage basis) were triple net leases,
requiring tenants to pay substantially all real estate taxes and
insurance, common area and other operating expenses, including
increases thereto. In addition, as of September 30, 2008,
approximately 8% of our leases (on a square footage basis) required
the tenants to pay a majority of operating expenses.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Leasing Activity
For the Quarter Ended September 30, 2008
TI's/Lease
Commissions
Number Rentable Rental Per
of Square Expiring New Rate Square Lease
Leases Footage Rates Rates Changes Foot Terms
------ -------- -------- ----- ------- ---- -----
Leasing Activity
Lease Expirations
Cash Basis 40 335,341 $25.13 − − − −
GAAP Basis 40 335,341 $24.52 − − − −
Renewed/Released
Space Leased
Cash Basis 19 211,234 $26.57 $27.77 4.5% $2.88 2.1
years
GAAP Basis 19 211,234 $25.73 $27.83 8.2% $2.88 2.1
years
Developed/Redeveloped/
Vacant Space Leased
Cash Basis 22 407,025 − $39.18 − $13.04 8.7
years
GAAP Basis 22 407,025 − $43.41 − $13.04 8.7
years
Month-to-Month Leases
in Effect
Cash Basis 12 83,719 $18.81 $18.85 − − −
GAAP Basis 12 83,719 $18.81 $18.85 − − −
Leasing Activity Summary
Excluding Month-to-Month
Leases
Cash Basis 41 618,259 − $35.28 − $9.57 6.3
years
GAAP Basis 41 618,259 − $38.09 − $9.57 6.3
years
Including Month-to-Month
Leases
Cash Basis 53 701,978 − $33.32 − − −
GAAP Basis 53 701,978 − $35.79 − − −
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Leasing Activity
For the Nine Months Ended September 30, 2008
TI's/Lease
Commissions
Number Rentable Rental Per
of Square Expiring New Rate Square Lease
Leases Footage Rates Rates Changes Foot Terms
------ -------- -------- ----- ------- ---- -----
Leasing Activity
Lease Expirations
Cash Basis 90 1,261,916 $25.94 − − − −
GAAP Basis 90 1,261,916 $24.60 − − − −
Renewed/Released
Space Leased
Cash Basis 59 915,808 $25.87 $27.37 5.8% $4.11 3.8
years
GAAP Basis 59 915,808 $24.32 $27.95 14.9% $4.11 3.8
years
Developed/Redeveloped/
Vacant Space Leased
Cash Basis 55 779,698 − $35.46 − $11.41 7.3
years
GAAP Basis 55 779,698 − $38.46 − $11.41 7.3
years
Month-to-Month Leases
in Effect
Cash Basis 12 83,719 $18.81 $18.85 − − −
GAAP Basis 12 83,719 $18.81 $18.85 − − −
Leasing Activity Summary
Excluding Month-to-Month
Leases
Cash Basis 114 1,695,506 − $31.09 − $7.46 5.4
years
GAAP Basis 114 1,695,506 − $32.78 − $7.46 5.4
years
Including Month-to-Month
Leases
Cash Basis 126 1,779,225 − $30.51 − − −
GAAP Basis 126 1,779,225 − $32.13 − − −
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Lease Expirations
September 30, 2008
Annualized
Rentable Base Rent
Square Percentage of of Expiring
Year of Number of Footage of Aggregate Leases
Lease Leases Expiring Leased (per rentable
Expiration Expiring Leases Square Feet square foot)
---------- --------- ---------- ------------- -------------
2008 26(1) 282,354(1) 2.7% $22.05
2009 73 844,481 8.1 25.61
2010 61 987,991 9.4 28.31
2011 68 1,766,910 16.9 28.03
2012 58 1,362,543 13.0 34.86
Rentable Square
Footage of Expiring Leases
Markets 2008 2009
-------------------------------- --------- -------
California - Los Angeles Metro 4,006 4,354
California - San Diego 2,965 257,894
California - San Francisco Bay 11,895 100,648
Eastern Massachusetts 129,038 125,408
International - Canada - -
New Jersey/Suburban Philadelphia - 21,000
Southeast 42,075 70,670
Suburban Washington, D.C. 71,582 230,135
Washington - Seattle 20,793 34,372
--------- -------
Total 282,354(1) 844,481
========= =======
(1) Includes 12 month-to-month leases for approximately 84,000 rentable
square feet. During the nine months ended September 30, 2008, we
executed leases for 1.7 million rentable square feet with rental rate
increases of 14.9% on renewed/released space.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Additions and Dispositions
For the Quarter Ended September 30, 2008
(Dollars in thousands)
Acquisition Month of Rentable
Markets Amount Acquisition Square Feet
-------------------------------- ----------- ----------- -----------
Total Additions to Properties
Under Redevelopment/
Operating Properties: N/A N/A N/A
Acquisition Month of Developable
Markets Amount Acquisition Square Feet
-------------------------------- ----------- ----------- -----------
Additions to Land:
Washington - Seattle $ 11,788 August 160,000
=========== =========== ===========
Disposition Month of Rentable
Markets Amount Disposition Square Feet
-------------------------------- ----------- ----------- -----------
Dispositions: N/A N/A N/A
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Square Footage Undergoing Redevelopment
September 30, 2008
Square
Estimated Footage
Placed Estimated Invest- Undergoing
in In- ment Redevelopment/
Markets/ Redeve- Service Per Square Total
Submarkets lopment Dates Foot Property Status
----------- ------- --------- ---------- -------------- ------
California -
San Diego 2006 2008 $80-100 23,070 / 29,660 Construction
California -
San Diego/
Torrey Pines 2004 2009 $100-120 87,140 / 87,140 Construction(1)
California -
San Diego/
Torrey Pines 2006 2009 $80-100 43,600 / 43,600 Construction
California -
San Diego/
Torrey Pines 2007 2009 $80-100 15,259 / 107,709 Construction
California -
San Diego/
Torrey Pines 2007 2009 $80-100 39,224 / 76,084 Construction
California - San
Francisco Bay/
Peninsula 2007 2008/2009 $80-100 26,363 / 82,712 Construction
California - San
Francisco Bay/
Peninsula 2008 2009 $80-100 21,316 / 98,964 Design/
Construction
Eastern
Massachusetts/
Cambridge 2006 2009 $120-175 76,890 / 177,101 Design/
Construction
Eastern
Massachusetts/
Cambridge 2007 2009 $100-130 90,841 / 369,831 Design/
Construction
Eastern
Massachusetts/
Suburban 2007 2009 $70-80 113,045 / 113,045 Design/
Construction
Eastern
Massachusetts/
Suburban 2008 2010 $120-140 30,000 / 30,000 Design/
Construction
Southeast/
Florida 2006 2008 $80-100 42,712 / 44,855 Construction
Southeast/
North Carolina 2008 2010 $80-100 6,729 / 60,519 Construction
Southeast/
North Carolina 2008 2009 $90-110 9,256 / 38,861 Construction
Southeast/
Research
Triangle Park 2007 2008 $100-120 16,393 / 77,395 Design/
Construction
Suburban
Washington,
D.C./
Gaithersburg 2007 2008 $40-50 15,504 / 44,464 Construction
Suburban
Washington,
D.C./Shady
Grove 2007 2009 $70-80 51,131 / 123,501 Construction
-------------------
708,473 / 1,605,441
===================
Our redevelopment program involves ongoing activities necessary
for the permanent change of use of applicable redevelopment
space to office/laboratory space. Spaces currently built out
with laboratory improvements are generally not placed into our
value-add redevelopment program. As required under GAAP,
interest and other costs directly related and essential to the
project are capitalized on redevelopment properties on the basis
allocable only to that portion of space undergoing
redevelopment. In addition to properties undergoing
redevelopment, as of September 30, 2008, our asset base
contained embedded opportunities for future permanent change of
use to office/laboratory space through redevelopment aggregating
approximately 1,588,000 rentable square feet. See Summary of
Embedded Future Development and Redevelopment Square Footage on
page 18.
(1) This project also includes site work and a multi-story
below and above ground parking structure to support both
the existing building undergoing redevelopment and an
additional building targeted for development in the
future. The entitlement process for this project was
completed in 2007.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Properties Undergoing Ground-Up Development
September 30, 2008
Estimated
Construction Estimated Investment Rentable
Markets/ Building Start In-Service Per Square Square
Submarkets Descriptions Dates Dates Foot(1) Feet
--------------------------------------------------------------------------
California -
San Francisco
Bay/ Mission
Bay Multi-tenant Bldg. 2007 2010 $350 158,000
California -
San Francisco Two Bldgs.,
Bay/ So. San Single or
Francisco Multi-tenant 2006 2009 $350 162,000
California -
San Francisco
Bay/ So. San
Francisco Single Tenant Bldg. 2006 2009 $350 130,000
International
- China Two Bldgs. 2007 2009 $40 280,000
New York - New
York City -
East Tower Multi-tenant Bldg. 2007 2010/2011 $500 310,000
New York -New
York City -
West Tower Multi-tenant Bldg. 2008 TBD $500 410,000
Washington - Single Tenant Bldg.
Seattle with 5% Retail 2007 2010 TBD 115,000
---------
Total Properties Undergoing Ground-Up Development (1) 1,565,000
=========
Development
Markets/Submarkets Status Leasing Status
------------------------------------------------------------------------
California - San
Francisco Bay/
Mission Bay Construction 100% Leased or Committed
California - San
Francisco Bay/ Construction 16% Leased Plus 53% Committed
So. San Francisco or Under Negotiation
California - San
Francisco Bay/ Construction 55% Leased with Option for
So. San Francisco Balance Through 2009
International - China Construction (2)
New York - New York City
- East Tower Construction (3)
New York - New York City
- West Tower Site Work Pre-marketing
Washington − Site Work 92% Leased with Option for
Seattle Additional 3%; 5% Retail
In accordance with Statement of Financial Accounting Standards No. 34,
"Capitalization of Interest Cost" ("SFAS 34") and Statement of Financial
Accounting Standards No. 67, "Accounting for Costs and Initial Rental
Operations of Real Estate Projects" ("SFAS 67"), we are required to
capitalize direct construction, including pre-construction costs,
interest, property taxes, insurance and other costs directly related and
essential to the construction of a project while activities are ongoing to
prepare an asset for its intended use. Pre-construction costs include
costs related to the development of plans and the process of obtaining
entitlements and permits from government authorities. Costs incurred after
a project is substantially complete and ready for its intended use are
expensed as incurred. Should development, redevelopment or construction
activity cease, construction costs, including interest, would no longer be
eligible for capitalization, under SFAS 34 and SFAS 67, and would be
expensed as incurred.
(1) Our aggregate construction costs to date approximate $195 per rentable
square foot. Amount excludes our investment per square foot in land.
(2) The joint venture has decided to reposition the project for lease to a
single technology and/or manufacturing tenant.
(3) Marketing; First lease for 5% awaiting tenant Board action and hiring
of new CEO; In discussions with various commercial and institutional
users aggregating more than 310,000 square feet; Working with City of
New York to land significant commercial life science anchor tenant.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Embedded Future Development and Redevelopment Square Footage
September 30, 2008
Total Embedded
Embedded Future
Development Redevelopment
Square Square
Markets Footage (1) Footage Total
----------- ----------- ------------
California - San Diego 443,000 178,000 621,000
California - San Francisco
Bay/Mission Bay 2,386,000 − 2,386,000
California - San Francisco
Bay/So. San Francisco 921,000 25,000 946,000
Eastern Massachusetts 2,275,000 563,000 2,838,000
International - Canada 827,000 − 827,000
Suburban Washington, D.C. 787,000 466,000 1,253,000
Washington - Seattle 1,077,000 135,000 1,212,000
Other 516,000 221,000 737,000
----------- ----------- ------------
Total 9,232,000 (2) 1,588,000 10,820,000
=========== =========== ============
The embedded future development and redevelopment square footage shown
above represents future ground-up development projects and future
redevelopment (permanent change in use of applicable space to
office/laboratory space) projects. A significant portion of our embedded
future development square footage is in the development/pre-construction
phase (entitlement, permitting, design, etc.). See discussion on SFAS 34
and SFAS 67 on page 17. Commencement of construction will depend on
numerous factors, including the successful completion of development/pre-
construction activities and management's assessment of overall economic,
credit, and market conditions. As required under GAAP, direct
construction, interest, property taxes, insurance and other costs directly
related and essential to the development/pre-construction, or construction
of a project, is mandated to be capitalized during pre-construction when
activities are ongoing to bring these assets to their intended use.
(1) Development/pre-construction square footage is included in Total
Embedded Development Square Footage shown above.
(2) In addition, we have the right to develop an additional parcel in New
York City with approximately 442,000 rentable square feet. This square
footage is not included in the embedded development square footage
shown above.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Capital Costs
For the Nine Months Ended September 30, 2008
(In thousands)
Property-related capital expenditures (1) $ 1,145
Leasing costs (2) $ 1,058
Property-related costs (3) $ 306,111
(1) Property-related capital expenditures include all major capital and
recurring capital expenditures except capital expenditures that are
recoverable from tenants, revenue-enhancing capital expenditures, or
costs related to the redevelopment of a property. Major capital
expenditures consist of roof replacements and HVAC systems which are
typically identified and considered at the time the property is
acquired. Capital expenditures fluctuate in any given period due to
the nature, extent or timing of improvements required and the extent
to which they are recoverable from tenants. Approximately 92% of our
leases (based on rentable square feet) provide for the recapture of
certain capital expenditures (such as HVAC systems maintenance and/or
replacement, roof replacement and parking lot resurfacing). In
addition, we implement an active preventative maintenance program at
each of our properties to minimize capital expenditures.
(2) Leasing costs consist of tenant improvements and leasing commissions
related to leasing of acquired vacant space and second generation
space.
(3) Amount includes leasing costs related to development and redevelopment
projects.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Conference Call Information
For the Third Quarter Ended September 30, 2008
Alexandria Real Estate Equities, Inc. will be hosting a conference call to discuss its operating and financial results for the third quarter and nine months ended September 30, 2008:
Date: October 30, 2008
Time: 2:00 P.M. Eastern Time/11:00 A.M. Pacific Time
Phone Number: (719) 325-4841
Confirmation Code: 6794213
|
Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.
Terms and conditions, including restrictions on
redistribution, apply.
Copyright © 1996-2008 PR Newswire Association LLC.
All Rights Reserved.
A United Business Media company.
