Alexandria Real Estate Equities, Inc. Reports: 3Q20 Net Income per Share – Diluted of $0.63; 3Q20 FFO per Share – Diluted, As Adjusted, of $1.83; and Operational Excellence and Strong and Flexible Balance Sheet With Significant Liquidity


Oct 28, 2020 10:08 AM ET
Alexandria Real Esta

iCrowd Newswire – Oct 28, 2020

 Alexandria Real Estate Equities, Inc. announced financial and operating results for the third quarter ended September 30, 2020.

 

Key highlights

       

YTD

 

Operating results

3Q20

 

3Q19

 

3Q20

 

3Q19

 

Total revenues:

               

In millions

$

545.0

 

$

390.5

 

$

1,421.9

 

$

1,123.2

 

Growth

39.6%

     

26.6%

     

Net income (loss) attributable to Alexandria’s common stockholders – diluted

In millions

$

79.3

 

$

(49.8)

 

$

324.2

 

$

150.4

 

Per share

$

0.63

 

$

(0.44)

 

$

2.61

 

$

1.35

 

Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted

 

In millions

$

230.7

 

$

197.1

 

$

677.1

 

$

579.6

 

Per share

$

1.83

 

$

1.75

 

$

5.46

 

$

5.19

 

Alexandria and its tenants at the vanguard and heart of the life science ecosystem

Bringing together our unique and pioneering strategic vertical platforms of essential Labspace® real estate, strategic venture investments, impactful thought leadership, and purposeful corporate responsibility, Alexandria is at the vanguard and heart of the vital life science ecosystem that is advancing solutions for COVID-19 and other key challenges to human health. Safe and effective vaccines and therapies, in addition to widespread testing, continue to be critically needed to combat the global COVID-19 pandemic. By maintaining continuous operations across our campuses and facilities, Alexandria has enabled our tenants, nearly 100 of which have programs focused on COVID-19, to continue to pursue their essential, mission-critical research, development, manufacturing, and commercialization efforts. Refer to “Alexandria and Its Innovative Tenants Are at the Vanguard and Heart of the Life Science Ecosystem Advancing Solutions for COVID-19″ of this Earnings Press Release for additional detail. 

Strong and flexible balance sheet with significant liquidity

  • $3.9 billion of liquidity as of September 30, 2020, proforma for our unsecured senior line of credit amended in October 2020. Refer to “Key credit metrics” of our Supplemental Information for additional details.
  • Minimal debt, 1.5% of total outstanding debt, maturing prior to 2024.
  • 10.6 years weighted-average remaining term of debt as of September 30, 2020.
  • Investment-grade credit ratings, which rank in the top 10% among all publicly traded REITs, of Baa1/Stable from Moody’s Investors Service and BBB+/Stable from S&P Global Ratings, both as of September 30, 2020.

Continued dividend strategy to share growth in cash flows with stockholders

Common stock dividend declared for 3Q20 of $1.06 per common share, aggregating $4.18 per common share for the twelve months ended September 30, 2020, up 24 cents, or 6%, over the twelve months ended September 30, 2019. Our FFO payout ratio of 61% for the three months ended September 30, 2020, allows us to share growth in cash flows from operating activities with our stockholders while also retaining a significant portion for reinvestment. 

A REIT industry-leading, high-quality tenant roster

  • 54% of annual rental revenue from investment-grade or publicly traded large cap tenants.
  • Weighted-average remaining lease term of 7.7 years.

Key strategic transactions generated capital for investment into our highly leased value-creation pipeline 

  • During 3Q20, we completed two strategic transactions in our SoMa submarket that generated capital aggregating $284.2 million for investment into our highly leased development and redevelopment projects currently under construction:
    • Disposition of 945 Market Street, aggregating 255,765 RSF, for a sales price of $198.0 million.
    • Termination of our contract with Pinterest, Inc. related to a future lease of 488,899 RSF at our 88 Bluxome Street development project, which has not commenced vertical construction. We recognized income of $86.2 million that comprise a termination fee of $89.5 million and related expenses of $3.3 million.

Contact Information:

http://www.are.com


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