PASADENA, Calif., Jan. 27,
2025 /PRNewswire/ -- Alexandria Real Estate Equities,
Inc. (NYSE: ARE) announced financial and operating results for the
fourth quarter and year ended December 31,
2024.
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Key
highlights
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Operating
results
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4Q24
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4Q23
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2024
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2023
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Total
revenues:
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In
millions
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$
788.9
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$
757.2
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$ 3,116.4
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$ 2,885.7
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Growth
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4.2 %
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8.0 %
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Net (loss) income
attributable to Alexandria's common stockholders –
diluted:
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In
millions
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$
(64.9)
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$
(91.9)
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$
309.6
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$
92.4
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Per
share
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$
(0.38)
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$
(0.54)
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$
1.80
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$
0.54
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Funds from operations
attributable to Alexandria's common stockholders – diluted, as
adjusted:
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In
millions
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$
411.8
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$
389.8
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$ 1,629.1
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$ 1,532.3
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Per
share
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$
2.39
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$
2.28
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$
9.47
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$
8.97
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A sector-leading REIT with a high-quality, diverse tenant
base and strong margins
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(As of
December 31, 2024, unless stated otherwise)
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Occupancy of operating
properties in North America
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94.6 %
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Percentage of annual
rental revenue in effect from Megacampus™ platform
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77 %
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Percentage of annual
rental revenue in effect from investment-grade or publicly traded
large cap tenants
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52 %
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Operating
margin
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70 %
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Adjusted EBITDA
margin
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72 %
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Percentage of leases
containing annual rent escalations
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97 %
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Weighted-average
remaining lease term:
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Top 20
tenants
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9.3
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years
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All tenants
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7.5
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years
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Sustained strength in
tenant collections:
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January 2025 tenant
rents and receivables collected as of January 27,
2025
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99.5 %
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4Q24 tenant rents and
receivables collected as of January 27, 2025
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99.9 %
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Strong and flexible balance sheet with significant liquidity;
top 10% credit rating ranking among all publicly traded U.S.
REITs
- Net debt and preferred stock to Adjusted EBITDA of 5.2x and
fixed-charge coverage ratio of 4.3x for 4Q24 annualized.
- Significant liquidity of $5.7
billion.
- 32% of our total debt matures in 2049 and beyond.
- 12.7 years weighted-average remaining term of debt.
- Since 2020, an average of 98.4% of our year-end debt balances
have been fixed rate.
- Total debt and preferred stock to gross assets of 28%.
- $684.1 million of capital
contribution commitments from existing real estate joint venture
partners to fund construction from 1Q25 through 2028.
Continued solid leasing volume and rental rate
increases
- Continued solid leasing volume:
- 1.3 million RSF for 4Q24, up 19% compared to our previous
five-quarter average.
- Fourth consecutive quarter with leasing volume exceeding 1
million RSF.
- 5.1 million RSF for 2024, up 19% compared to our 2014–2020
average of 4.3 million RSF.
- Rental rate increases on lease renewals and re-leasing of space
were 18.1% and 3.3% (cash basis) for 4Q24 and 16.9% and 7.2% (cash
basis) for 2024.
- 84% of our leasing activity during the last twelve months was
generated from our existing tenant base.
- Tenant improvements and leasing commissions on renewed and
re-leased space executed during the year ended December 31, 2024 represented only 8.4% of total
lease term rents, the second lowest percentage of total lease term
rents in the past five years.
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4Q24
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2024
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Total leasing activity
– RSF
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1,310,999
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5,053,954
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Leasing of development
and redevelopment space – RSF
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12,999
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(1)
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493,341
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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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1,024,862
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3,888,139
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Rental rate
increase
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18.1 %
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16.9 %
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Rental rate
increase (cash basis)
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3.3 %
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7.2 %
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(1) As of
December 31, 2024, our projects expected to stabilize in 2025 were
89% leased/negotiating.
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Attractive dividend strategy to share net cash flows from
operating activities with stockholders while retaining a
significant portion for reinvestment
- Common stock dividend declared for 4Q24 of $1.32 per common share aggregating $5.19 per common share for the year ended
December 31, 2024, up 23 cents, or 5%, over the year ended December 31, 2023.
- Dividend yield of 5.4% as of December
31, 2024.
- Dividend payout ratio of 55% for the three months ended
December 31, 2024.
- Average annual dividend per-share growth of 5.4% from 2020
through 2024.
- Significant net cash flows from operating activities after
dividends retained for reinvestment aggregating $2.2 billion for the years ended December 31, 2020 through 2024.
Strong execution of Alexandria's 2024 capital strategy
Our 2024 capital plan included $1.4
billion in funding from strategic dispositions that focused
on a portfolio of diversified assets, of which $1.1 billion was completed during 4Q24.
Refer to "Dispositions" in the Earnings Press Release for
additional details.
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(in
millions)
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YTD 3Q24
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$
239
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4Q24
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1,128
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Total 2024
dispositions
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$
1,367
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- As of January 27, 2025, our share
of pending dispositions subject to negotiations aggregated
$539.5 million. These transactions
represent approximately 32% of the $1.7
billion midpoint of our 2025 guidance range for dispositions
and sales of partial interests.
Alexandria's development and
redevelopment pipeline delivered incremental annual net operating
income of $55 million commencing
during 4Q24 and is expected to deliver incremental annual net
operating income aggregating $395
million by 2Q28
- During 4Q24, we placed into service Megacampus development and
redevelopment projects aggregating 602,593 RSF that are 98%
occupied across multiple submarkets and delivered incremental
annual net operating income of $55
million. Key 4Q24 deliveries included:
- 171,102 RSF at 4155 Campus Point Court located on the Campus
Point by Alexandria Megacampus in our University Town Center
submarket;
- 139,984 RSF at 840 Winter Street located on the Alexandria
Center® for Life Science – Waltham Megacampus in our
Route 128 submarket; and
- 93,492 RSF at 10935, 10945, and 10955 Alexandria Way located on
the One Alexandria Square Megacampus in our Torrey Pines submarket.
- Annual net operating income (cash basis) is expected to
increase by $70 million upon the
burn-off of initial free rent, with a weighted-average burn-off
period of approximately three months, from recently delivered
projects.
- 68% of the RSF in our total development and redevelopment
pipeline is within our Megacampus ecosystems.
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Development and
Redevelopment Projects
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Incremental
Annual Net
Operating Income
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RSF
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Occupancy
Percentage
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(dollars in
millions)
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Placed into
service:
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YTD
3Q24
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$
63
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945,118
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100 %
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4Q24
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55
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602,593
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98
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Placed into service in
2024
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$
118
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1,547,711
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98 %
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Expected to be placed
into service:
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2025
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$
83
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(1)
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4,357,276
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1Q26 through
2Q28
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312
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$
395
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(1)
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Includes (i) 461,101
RSF that is expected to stabilize through 2025 and is 89%
leased/negotiating and (ii) expected partial deliveries
through 4Q25 from projects expected to stabilize in 2026 and
beyond. Refer to the initial and stabilized occupancy years under
"New Class A/A+ development and redevelopment properties: current
projects" in the Supplemental Information for additional
details.
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Continued solid net operating income and internal
growth
- Net operating income (cash basis) growth:
- $2.1 billion for 4Q24 annualized,
up $177.9 million, or 9.5%, compared
to 4Q23 annualized.
- $2.0 billion for 2024, up
$176.9 million, or 9.8%, compared to
2023.
- Same property net operating income growth of 0.6% and 6.3%
(cash basis) for 4Q24 over 4Q23 and 1.2% and 4.6% (cash basis) for
2024 over 2023.
- 97% of our leases contain contractual annual rent escalations
approximating 3%.
Continued rigorous focus on management of general and
administrative costs
- General and administrative expenses as a percentage of net
operating income of 7.6% for 2024, compared to 9.8% for 2023.
- We expect general and administrative cost savings of
approximately $32 million in 2025,
based on the midpoint of our guidance, compared to 2024, from a
variety of cost-control and efficiency initiatives, including:
- Personnel-related matters: reduction in headcount over the last
two years and restructuring of compensation plans.
- Streamlining of business processes: systems upgrades, process
improvements, and cost reduction in legal, technology, and
operational support services.
Strong balance sheet management
Key metrics as of
or for the three months ended December 31, 2024
- $29.0 billion in total market
capitalization.
- $16.8 billion in total equity
capitalization.
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4Q24
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Target
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Quarter
Annualized
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Trailing
12 Months
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4Q25
Annualized
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Net debt and preferred
stock to
Adjusted EBITDA
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5.2x
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5.3x
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Less than or equal to
5.2x
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Fixed-charge coverage
ratio
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4.3x
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4.5x
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4.0x to 4.5x
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Key capital events
- On December 9, 2024, we announced
that our board of directors authorized a common stock repurchase
program under which we may repurchase up to $500.0 million of our common stock through
December 31, 2025. Repurchases are
expected to be funded on a leverage-neutral basis.
- In December 2024, we repurchased
$50.1 million of common stock.
- From January 1, 2025 through
January 27, 2025, we repurchased
$150.0 million of additional common
stock.
- As of January 27, 2025,
cumulative repurchases under the program aggregated $200.1 million and 2.0 million shares of common
stock at an average price per share of $98.16.
- As of January 27, 2025, the
approximate value of shares authorized and remaining under this
program was $299.9 million.
- During 4Q24, we settled all outstanding forward equity sales
agreements by issuing 230 thousand shares of common stock at an
average price per share of $120.93
and received net proceeds of $27.8
million. As of January 27,
2025, the remaining aggregate amount available for future
sales of common stock under our ATM program was $1.47 billion.
Investments
- As of December 31, 2024:
- Our non-real estate investments aggregated $1.5 billion.
- Unrealized gains presented in our consolidated balance sheet
were $83.6 million, comprising gross
unrealized gains and losses aggregating $228.1 million and $144.5
million, respectively.
- Investment loss of $68.0 million
for 4Q24 presented in our consolidated statement of operations
consisted of $32.1 million of
realized gains, $79.8 million of
unrealized losses, and $20.3 million
of impairment charges.
- Investment loss of $53.1 million
for 2024 presented in our consolidated statement of operations
consisted of $117.2 million of
realized gains, $112.2 million of
unrealized losses, and $58.1 million
of impairment charges.
Other key highlights
Executive management change,
effective December 31, 2024
Effective on December 31, 2024,
Vincent Ciruzzi retired from his position as Chief Development
Officer after nearly 30 years of exemplary service. His
responsibilities will be assumed by multiple members within our
Real Estate Development Team, which Mr. Ciruzzi formed and led over
his tenure with Alexandria.
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Key items included
in net income attributable to Alexandria's common
stockholders:
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4Q24
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4Q23
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4Q24
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4Q23
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2024
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2023
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2024
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2023
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(in millions, except
per share amounts)
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Amount
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Per Share –
Diluted
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Amount
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Per Share –
Diluted
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Unrealized (losses)
gains on
non-real estate investments
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$ (79.8)
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$
19.5
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$
(0.46)
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$ 0.11
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$
(112.2)
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$
(201.5)
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$
(0.65)
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$
(1.18)
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Gain on sales of real
estate
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101.8
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62.2
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0.59
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0.36
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129.3
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277.0
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0.75
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1.62
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Impairment of non-real
estate
investments
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(20.3)
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(23.1)
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(0.12)
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(0.13)
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(58.1)
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(74.6)
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(0.34)
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(0.44)
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Impairment of real
estate(1)
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(186.6)
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(271.9)
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(1.08)
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(1.59)
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(223.1)
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(461.1)
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(1.30)
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(2.70)
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Acceleration of
stock
compensation expense due
to executive officer
resignations
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—
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(18.4)
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—
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(0.11)
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—
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(20.3)
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—
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(0.12)
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Provision for expected
credit
losses on financial
instruments(1)
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0.4
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—
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—
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—
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0.4
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—
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—
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—
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Total
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$
(184.5)
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$
(231.7)
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$
(1.07)
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$
(1.36)
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$
(263.7)
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$
(480.5)
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$
(1.54)
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$
(2.82)
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(1) Refer to "Funds from
operations and funds from operations per share" in the Earnings
Press Release for additional details.
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Subsequent events
- In January 2025, pursuant to an
amendment executed in July 2024 to
our existing ground lease agreement at the Alexandria Technology
Square® Megacampus, we made the second and final
installment payment aggregating $135.0
million related to our rent obligation for the extended
ground lease term.
Industry and corporate responsibility leadership: catalyzing
and leading the way for positive change to benefit human health and
society
- Alexandria's longstanding
sustainability leadership and performance was reinforced by our
achievements in the 2024 GRESB Real Estate Assessment. We received
the GRESB Green Star designation for the eighth consecutive year
and an "A" disclosure score for the seventh consecutive year,
signifying best-in-class transparency regarding our sustainability
practices and reporting.
- 325 Binney Street, a 462,100 RSF
development on the Alexandria Center® at One Kendall
Square Megacampus in our Cambridge
submarket, earned LEED Platinum certification, the highest level of
certification under the U.S. Green Building Council's Core and
Shell rating system. Home to Moderna's global headquarters and
R&D center, the ultra-efficient building is targeting LEED Zero
Energy certification, reduced fossil fuel use through the
implementation of a geothermal system, and 100% renewable
electricity, resulting in an estimated 97% reduction of greenhouse
gas emissions relative to the MA 2020 Stretch Code baseline.
- 8 Davis Drive on the Alexandria Center® for Advanced
Technologies and AgTech – Research Triangle Megacampus won a BOMA
Raleigh-Durham TOBY (The Outstanding Building of the Year) Award in
the Life Science category. The TOBY Awards are the commercial real
estate industry's highest recognition honoring excellence in
commercial building management and operations.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P
500® company, is a best-in-class, mission-driven life
science REIT making a positive and lasting impact on the world.
With our founding in 1994, Alexandria pioneered the life science real
estate niche. Alexandria is the
preeminent and longest-tenured owner, operator, and developer of
collaborative Megacampus™ ecosystems in AAA life science innovation
cluster locations, including Greater
Boston, the San Francisco Bay
Area, San Diego,
Seattle, Maryland, Research Triangle, and New York City. As of December 31, 2024, Alexandria has a total market capitalization
of $29.0 billion and an asset
base in North America that
includes 39.8 million RSF of operating properties and 4.4
million RSF of Class A/A+ properties undergoing construction.
Alexandria has a longstanding and
proven track record of developing Class A/A+ properties clustered
in highly dynamic and collaborative Megacampus environments that
enhance our tenants' ability to successfully recruit and retain
world-class talent and inspire productivity, efficiency,
creativity, and success. Alexandria also provides strategic capital to
transformative life science companies through our venture capital
platform. We believe our unique business model and diligent
underwriting ensure a high-quality and diverse tenant base that
results in higher occupancy levels, longer lease terms, higher
rental income, higher returns, and greater long-term asset value.
For more information on Alexandria, please visit
www.are.com.
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Guidance
December 31, 2024
(Dollars in millions, except per share amounts)
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The following guidance
for 2025 has been updated to reflect our current view of existing
market conditions and assumptions for the year ending December 31,
2025. There can be no assurance that actual results will not be
materially higher or lower than these expectations. Also, refer to
our discussion of "forward-looking statements" of the Earnings
Press Release for additional details. Key updates to our 2025
guidance from December 4, 2024 are summarized in the tables below
and include changes to the midpoints of our guidance ranges for key
sources of capital as follows: (i) a $150 million increase in
dispositions and sales of partial interests representing pending
transactions that were originally expected to close in 4Q24, and
are now anticipated to be completed in 2025 and (ii) a
corresponding $150 million decrease in excess 2024 bond capital
held as cash at December 31, 2024.
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2025 Guidance
Midpoint
|
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2025 Guidance
Midpoint
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Summary of Key
Changes in Guidance
|
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As of
1/27/25
|
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As of
12/4/24
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Summary of Key
Changes in Sources and Uses of Capital
|
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As of
1/27/25
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As of
12/4/24
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EPS, FFO per share, and
FFO per share, as adjusted
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No Change
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Excess 2024 bond
capital expected to be held as cash at
December 31,
2024
|
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$
—
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$
150
|
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|
|
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Dispositions and sales
of partial interests
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$
1,700
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$
1,550
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Key Credit Metric
Targets(1)
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Net debt and preferred
stock to Adjusted EBITDA – 4Q25 annualized
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Less than or equal to
5.2x
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Fixed-charge coverage
ratio – 4Q25 annualized
|
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4.0x to 4.5x
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Projected 2025
Earnings per Share and Funds From Operations per Share Attributable
to
Alexandria's Common Stockholders – Diluted
|
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Earnings per
share(2)
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$2.57 to
$2.77
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Depreciation and
amortization of real estate assets
|
|
|
6.70
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Allocation to
unvested restricted stock awards
|
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(0.04)
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Funds from operations
per share and funds from operations per share, as
adjusted(1)
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$9.23 to
$9.43
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Midpoint
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$9.33
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Key Sources and Uses
of Capital
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Range
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Midpoint
|
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Sources of
capital:
|
|
|
|
|
|
|
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Reduction in
debt
|
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$ (40)
|
|
$ (340)
|
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$ (190)
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Net cash
provided by operating activities after dividends
|
|
425
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|
525
|
|
475
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Dispositions and
sales of partial interests(3)
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|
1,200
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2,200
|
|
1,700
|
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Total sources of
capital
|
|
$
1,585
|
|
$
2,385
|
|
$
1,985
|
|
Uses of
capital:
|
|
|
|
|
|
|
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Construction
|
|
$
1,450
|
|
$
2,050
|
|
$
1,750
|
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Acquisitions and
other opportunistic uses of capital(4)
|
|
—
|
|
200
|
|
100
|
|
Ground lease
prepayment(5)
|
|
135
|
|
135
|
|
135
|
|
Total uses of
capital
|
|
$
1,585
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|
$
2,385
|
|
$
1,985
|
|
Reduction in debt
(included above):
|
|
|
|
|
|
|
|
Issuance of
unsecured senior notes payable
|
|
$ 300
|
|
$ 900
|
|
$ 600
|
|
Repayment of
secured notes payable
|
|
(600)
|
|
(600)
|
|
(600)
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|
Unsecured senior
line of credit, commercial paper, and other
|
|
260
|
|
(640)
|
|
(190)
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Net reduction in
debt
|
|
$ (40)
|
|
$ (340)
|
|
$ (190)
|
|
Key
Assumptions
|
|
Low
|
|
High
|
|
|
Occupancy percentage in
North America as of December 31, 2025
|
|
91.6 %
|
|
93.2 %
|
|
|
Lease renewals and
re-leasing of space:
|
|
|
|
|
|
|
Rental rate
changes
|
|
9.0 %
|
|
17.0 %
|
|
|
Rental rate
changes (cash basis)
|
|
0.5 %
|
|
8.5 %
|
|
|
Same property
performance:
|
|
|
|
|
|
|
Net operating
income
|
|
(3.0) %
|
|
(1.0) %
|
|
|
Net operating
income (cash basis)
|
|
(1.0) %
|
|
1.0 %
|
|
|
Straight-line rent
revenue
|
|
$
111
|
|
$
131
|
|
|
General and
administrative expenses
|
|
$
129
|
|
$
144
|
|
|
Capitalization of
interest
|
|
$
340
|
|
$
370
|
|
|
Interest
expense
|
|
$
165
|
|
$
195
|
|
|
Realized gains on
non-real estate investments(6)
|
|
$
100
|
|
$
130
|
|
|
|
|
(1)
|
Refer to "Definitions
and reconciliations" in the Supplemental Information for
additional details.
|
|
(2)
|
Excludes unrealized
gains or losses on non-real estate investments after December 31,
2024 that are required to be recognized in earnings and are
excluded from funds from operations per share, as
adjusted.
|
|
(3)
|
As of January 27, 2025,
our share of pending dispositions subject to negotiations
aggregated $539.5 million. These transactions represent
approximately 32% of the $1.7 billion midpoint of our 2025 guidance
range for dispositions and sales of partial interests.
|
|
(4)
|
On December 9, 2024, we
announced that our board of directors authorized a common stock
repurchase program under which we may repurchase up to $500.0
million of our common stock in the open market or in privately
negotiated transactions through December 31, 2025. In January 2025,
we repurchased common stock aggregating $150.0 million at an
average price per share of $97.26. As of January 27, 2025, the
approximate value of shares authorized and remaining under this
program was $299.9 million.
|
|
(5)
|
Refer to "Subsequent
event" in the Earnings Press Release for additional
information.
|
|
(6)
|
Represents realized
gains and losses included in funds from operations per share –
diluted, as adjusted, and excludes significant impairments realized
on non-real estate investments, if any. Refer to "Investments" in
the Supplemental Information for additional details.
|
|
Acquisitions
December 31, 2024
(Dollars in thousands)
|
|
Property
|
|
Submarket/Market
|
|
Date
of
Purchase
|
|
Number of
Properties
|
|
Operating
Occupancy
|
|
Square
Footage
|
|
Purchase
Price
|
|
|
|
|
Future
Development(1)
|
|
Operating With
Future Development/
Redevelopment(1)
|
|
|
|
|
|
|
|
|
Completed in
2024:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
285, 299, 307, and 345
Dorchester Avenue (60%
interest in consolidated JV)
|
|
Seaport Innovation
District/Greater
Boston
|
|
1/30/24
|
|
—
|
|
N/A
|
|
1,040,000
|
|
—
|
|
$
|
155,321
|
|
|
428 Westlake Avenue
North
|
|
Lake
Union/Seattle
|
|
10/1/24
|
|
1
|
|
100 %
|
|
|
—
|
|
90,626
|
|
|
47,600
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,490
|
|
|
Total 2024
acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
249,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We expect to provide
total estimated costs and related yields for development and
significant redevelopment projects in the future, subsequent to the
commencement of construction.
|
|
2024
Dispositions
December 31, 2024
(Dollars in thousands)
|
|
Property
|
|
Submarket/Market
|
|
Date of
Sale
|
|
Interest
Sold
|
|
RSF
|
|
Capitalization
Rate
|
|
Capitalization
Rate
(Cash
Basis)
|
|
Sales
Price
|
|
Seller
Financing
|
|
Sales
Price per
RSF
|
|
Gain on
Sale of Real
Estate
|
|
|
Completed in YTD
3Q24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 238,709
|
|
|
|
|
|
$
27,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed in
4Q24:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Moderna
Way
|
|
Route 128/Greater
Boston
|
|
12/17/24
|
|
100 %
|
|
|
722,130
|
|
8.5 %
|
|
|
6.3 %
|
|
|
369,439
|
|
|
|
$
512
|
|
—
|
|
|
14225 Newbrook
Drive
|
|
Northern
Virginia/Maryland
|
|
10/15/24
|
|
100 %
|
|
|
248,186
|
|
7.6 %
|
|
|
7.4 %
|
|
|
80,500
|
|
|
|
$
324
|
|
37,074
|
|
|
6040 George Watts Hill
Drive
|
|
Research Triangle/
Research Triangle
|
|
12/10/24
|
|
100 %
|
|
|
149,585
|
|
8.0 %
|
|
|
7.1 %
|
|
|
93,500
|
|
|
|
$
625
|
|
5,004
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78,610
|
|
|
|
|
|
4,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
622,049
|
|
|
|
|
|
|
|
|
Properties with
vacancy or significant near-term capital
requirements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
215 First
Street
|
|
Cambridge/Greater
Boston
|
|
12/20/24
|
|
100 %
|
|
|
369,520
|
|
(1)
|
|
(1)
|
|
245,539
|
(1)
|
|
|
(1)
|
|
—
|
|
|
150 Second Street and
11 Hurley Street
|
|
Cambridge/Greater
Boston
|
|
|
|
|
182,993
|
|
|
|
|
|
|
|
4755 and 4757 Nexus
Center Drive and
4796 Executive Drive(2)
|
|
University Town
Center/
San Diego
|
|
12/30/24
|
|
100 %
|
|
|
177,804
|
|
(2)
|
|
(2)
|
|
120,000
|
(2)
|
$ 79,166
|
|
$
675
|
|
47,511
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47,243
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
412,782
|
|
|
|
|
|
|
|
|
Land and
other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10048 and 10219
Meanley Drive and
10277 Scripps Ranch Boulevard
|
|
Sorrento Mesa/San
Diego
|
|
12/20/24
|
|
100 %
|
|
|
444,041
|
|
(3)
|
|
(3)
|
|
55,000
|
|
25,000
|
|
|
|
—
|
|
|
9444 Waples Street
(50% consolidated JV)
|
|
Sorrento Mesa/San
Diego
|
|
12/23/24
|
|
(4)
|
|
|
149,000
|
|
(4)
|
|
(4)
|
|
31,000
|
(4)
|
|
|
|
|
8,175
|
(4)
|
|
Other(5)
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
22,913
|
(5)
|
|
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
108,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,143,744
|
(6)
|
|
|
|
|
|
|
|
Total 2024
dispositions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
1,382,453
|
|
$
104,166
|
|
|
|
$ 129,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our share of 2024
dispositions, including amounts recognized within
equity in earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
1,366,953
|
|
|
|
|
|
$ 127,615
|
(7)
|
|
|
Refer to "Definitions
and reconciliations" in the Supplemental Information for
additional details.
|
|
|
|
(1)
|
Represents properties
that were 87% occupied as of 3Q24, with 61% of the aggregate RSF,
primarily located at 215 First Street, scheduled to expire by
4Q25. These properties were not core to our Megacampus
strategy due to their size, location, or existing use. They are
also expected to require significant re-leasing capital over the
next few years, including at 215 First Street, a historical
building with infrastructure limitations and challenging floor
plates. Acquired in 2007, 215 First Street came with significant
entitlements which were later used to develop new adjacent projects
at Alexandria Center® at Kendall Square. Since then,
this property has served as a reliable asset, providing primarily
office space to our tenants. However, given the low occupancy and
the significant reinvestment required for upgrades, we plan to
recycle the capital generated by the disposition into our
development and redevelopment pipeline.
|
|
(2)
|
Represents properties
that were 65% occupied as of 3Q24, with 26% of the aggregate RSF
scheduled to expire by 2Q25.
|
|
(3)
|
Represents the sale of
land parcels.
|
|
(4)
|
Represents 100% of the
contractual sales price. We held a 50% interest in this property
through a consolidated real estate joint venture, and our share of
the sales price and gain on real estate is $15.5 million and $3.2
million, respectively.
|
|
(5)
|
Represents the
disposition of an unconsolidated real estate joint venture for
which we recognized a gain on sale of real estate of $3.3 million,
which is classified as equity in earnings of unconsolidated real
estate joint ventures in our consolidated statement of
operations.
|
|
(6)
|
Dispositions completed
during 4Q24 had annual net operating income of $97.9 million (based
on 3Q24 annualized) with a weighted-average disposition date of
December 10, 2024 (weighted by net operating income for 3Q24
annualized).
|
|
(7)
|
Refer to footnotes 4
and 5.
|
|
2025 Dispositions
and Sales of Partial Interests
December 31, 2024
(Dollars in thousands)
|
|
Property
|
|
Submarket/Market
|
|
Date of
Expected
Sale
|
|
Interest
Expected to
Be Sold
|
|
Sales
Price
|
|
|
Pending 2025
dispositions and sales of partial interests expected to close
subsequent to January 27, 2025:
|
|
|
|
|
|
|
|
|
|
|
|
Subject to
non-refundable deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Pending
|
|
San Diego
|
|
1Q25
|
|
100 %
|
|
|
$
124,000
|
|
|
Pending
|
|
Texas
|
|
1Q25
|
|
100 %
|
|
|
33,000
|
|
|
Pending
|
|
San Diego
|
|
2H25
|
|
100 %
|
|
|
50,000
|
|
|
Other
|
|
|
|
|
|
|
|
|
20,850
|
|
|
|
|
|
|
|
|
|
|
227,850
|
|
|
Subject to executed
letters of intent and/or purchase and sale agreement
negotiations:
|
|
|
|
|
|
|
|
|
|
|
|
1450 Owens Street
(25.1% consolidated JV)
|
|
Mission Bay/San
Francisco Bay Area
|
|
2H25
|
|
(1)
|
|
|
144,705
|
(1)
|
|
Other
|
|
Various
|
|
|
|
|
|
|
276,612
|
|
|
|
|
|
|
|
|
|
|
421,317
|
|
|
|
|
|
|
|
|
|
|
$
649,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Our share of 2025
dispositions
|
|
|
|
|
|
|
|
|
$
539,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 guidance range for
dispositions and sales of partial interests
|
|
|
|
$1,200,000 –
$2,200,000
|
|
|
|
|
(1)
|
Represents 100% of the
contractual sales price. In 4Q24, we executed a letter of intent
with a biomedical institution for the sale of a condominium
interest aggregating 103,361 RSF, or approximately 49% of the
development project. We own a 25.1% interest in this property
through a consolidated real estate joint venture, and our share of
the sales price is $36 million. We expect to complete the
transaction in 2025.
|
Earnings Call Information and About the Company
December 31, 2024
We will host a conference call on Tuesday, January 28, 2025, at 3:00 p.m. Eastern Time ("ET")/noon Pacific Time ("PT"), which is open to the
general public, to discuss our financial and operating results for
the fourth quarter and year ended December
31, 2024. To participate in this conference call, dial (833)
366-1125 or (412) 902-6738 shortly before 3:00 p.m. ET/noon
PT and ask the operator to join the call for Alexandria Real
Estate Equities, Inc. The audio webcast can be accessed
at www.are.com in the "For Investors" section. A replay of the
call will be available for a limited time from 5:00 p.m. ET/2:00 p.m. PT on Tuesday, January 28, 2025. The replay number is
(877) 344-7529 or (412) 317-0088, and the access code is
1012884.
Additionally, a copy of this Earnings Press Release and
Supplemental Information for the fourth quarter and year ended
December 31, 2024 is available in the "For Investors" section
of our website at www.are.com or by following this link:
https://www.are.com/fs/2024q4.pdf.
For any questions, please contact corporateinformation@are.com;
Joel S. Marcus, executive chairman
and founder; Peter M. Moglia, chief executive officer and
chief investment officer; Marc E.
Binda, chief financial officer and treasurer; Paula Schwartz, managing director of Rx
Communications Group, at (917) 633-7790; or Sara M. Kabakoff, senior vice president – chief
content officer.
About the Company
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P
500® company, is a best-in-class, mission-driven life
science REIT making a positive and lasting impact on the world.
With our founding in 1994, Alexandria pioneered the life science real
estate niche. Alexandria is the
preeminent and longest-tenured owner, operator, and developer of
collaborative Megacampus™ ecosystems in AAA life science innovation
cluster locations, including Greater
Boston, the San Francisco Bay
Area, San Diego,
Seattle, Maryland, Research Triangle, and New York City. As of December 31,
2024, Alexandria has a total
market capitalization of $29.0 billion and an asset base in
North America that includes
39.8 million RSF of operating properties and 4.4 million RSF of
Class A/A+ properties undergoing construction. Alexandria has a longstanding and proven track
record of developing Class A/A+ properties clustered in highly
dynamic and collaborative Megacampus environments that enhance our
tenants' ability to successfully recruit and retain world-class
talent and inspire productivity, efficiency, creativity, and
success. Alexandria also provides
strategic capital to transformative life science companies through
our venture capital platform. We believe our unique business model
and diligent underwriting ensure a high-quality and diverse tenant
base that results in higher occupancy levels, longer lease terms,
higher rental income, higher returns, and greater long-term asset
value. For more information on Alexandria, please visit
www.are.com.
Forward-Looking Statements
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 projected 2025 earnings per share,
projected 2025 funds from operations per share, projected 2025
funds from operations per share, as adjusted, projected 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 Securities and
Exchange Commission ("SEC"). Accordingly, you are cautioned not to
place undue reliance on such forward-looking statements. All
forward-looking statements are made as of the date of this Earnings
Press Release and Supplemental Information, and unless otherwise
stated, we assume no obligation to update this information and
expressly disclaim any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. For more discussion relating to risks
and uncertainties that could cause actual results to differ
materially from those anticipated in our forward-looking
statements, and risks to our business in general, please refer to
our SEC filings, including our most recent annual report on Form
10-K and any subsequent quarterly reports on Form 10-Q.
This document is not an offer to sell or a solicitation to buy
securities of Alexandria Real Estate Equities, Inc. Any offers to
sell or solicitations to buy our securities shall be made only by
means of a prospectus approved for that purpose. Unless otherwise
indicated, the "Company," "Alexandria," "ARE," "we," "us," and "our"
refer to Alexandria Real Estate Equities, Inc. and our consolidated
subsidiaries. Alexandria®, Lighthouse
Design® logo, Building the Future of Life-Changing
Innovation®, That's What's in Our DNA®,
Megacampus™, Labspace®, Alexandria
Summit®, At the Vanguard and Heart of the Life
Science Ecosystem™, Alexandria Center®, Alexandria
Technology Square®, Alexandria Technology
Center®, and Alexandria Innovation Center®
are copyrights and trademarks of Alexandria Real Estate Equities,
Inc. All other company names, trademarks, and logos referenced
herein are the property of their respective owners.
|
Consolidated
Statements of Operations
December 31, 2024
(Dollars in thousands, except per share amounts)
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
12/31/24
|
|
9/30/24
|
|
6/30/24
|
|
3/31/24
|
|
12/31/23
|
|
12/31/24
|
|
12/31/23
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
rentals
|
|
$
763,249
|
|
$
775,744
|
|
$
755,162
|
|
$
755,551
|
|
$
742,637
|
|
$
3,049,706
|
|
$
2,842,456
|
|
Other
income
|
|
25,696
|
|
15,863
|
|
11,572
|
|
13,557
|
|
14,579
|
|
66,688
|
|
43,243
|
|
Total
revenues
|
|
788,945
|
|
791,607
|
|
766,734
|
|
769,108
|
|
757,216
|
|
3,116,394
|
|
2,885,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
operations
|
|
240,432
|
|
233,265
|
|
217,254
|
|
218,314
|
|
222,726
|
|
909,265
|
|
859,180
|
|
General and
administrative
|
|
32,730
|
|
43,945
|
|
44,629
|
|
47,055
|
|
59,289
|
|
168,359
|
|
199,354
|
|
Interest
|
|
55,659
|
|
43,550
|
|
45,789
|
|
40,840
|
|
31,967
|
|
185,838
|
|
74,204
|
|
Depreciation and
amortization
|
|
330,108
|
|
293,998
|
|
290,720
|
|
287,554
|
|
285,246
|
|
1,202,380
|
|
1,093,473
|
|
Impairment of
real estate
|
|
186,564
|
(1)
|
5,741
|
|
30,763
|
|
—
|
|
271,890
|
|
223,068
|
|
461,114
|
|
Total
expenses
|
|
845,493
|
|
620,499
|
|
629,155
|
|
593,763
|
|
871,118
|
|
2,688,910
|
|
2,687,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings of
unconsolidated real estate joint ventures
|
|
6,635
|
(2)
|
139
|
|
130
|
|
155
|
|
363
|
|
7,059
|
|
980
|
|
Investment (loss)
income
|
|
(67,988)
|
|
15,242
|
|
(43,660)
|
|
43,284
|
|
8,654
|
|
(53,122)
|
|
(195,397)
|
|
Gain on sales of real
estate
|
|
101,806
|
|
27,114
|
|
—
|
|
392
|
|
62,227
|
|
129,312
|
|
277,037
|
|
Net (loss)
income
|
|
(16,095)
|
|
213,603
|
|
94,049
|
|
219,176
|
|
(42,658)
|
|
510,733
|
|
280,994
|
|
Net income attributable
to noncontrolling interests
|
|
(46,150)
|
|
(45,656)
|
|
(47,347)
|
|
(48,631)
|
|
(45,771)
|
|
(187,784)
|
|
(177,355)
|
|
Net (loss) income
attributable to Alexandria Real Estate Equities, Inc.'s
stockholders
|
|
(62,245)
|
|
167,947
|
|
46,702
|
|
170,545
|
|
(88,429)
|
|
322,949
|
|
103,639
|
|
Net income attributable
to unvested restricted stock awards
|
|
(2,677)
|
|
(3,273)
|
|
(3,785)
|
|
(3,659)
|
|
(3,498)
|
|
(13,394)
|
|
(11,195)
|
|
Net (loss) income
attributable to Alexandria Real Estate Equities, Inc.'s
common stockholders
|
|
$
(64,922)
|
|
$
164,674
|
|
$
42,917
|
|
$
166,886
|
|
$
(91,927)
|
|
$
309,555
|
|
$
92,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per
share attributable to Alexandria Real Estate Equities,
Inc.'s common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.38)
|
|
$
0.96
|
|
$
0.25
|
|
$
0.97
|
|
$
(0.54)
|
|
$
1.80
|
|
$
0.54
|
|
Diluted
|
|
$
(0.38)
|
|
$
0.96
|
|
$
0.25
|
|
$
0.97
|
|
$
(0.54)
|
|
$
1.80
|
|
$
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
of common stock outstanding – basic and
diluted
|
|
172,262
|
|
172,058
|
|
172,013
|
|
171,949
|
|
171,096
|
|
172,071
|
|
170,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share of common stock
|
|
$
1.32
|
|
$
1.30
|
|
$
1.30
|
|
$
1.27
|
|
$
1.27
|
|
$
5.19
|
|
$
4.96
|
|
|
|
(1)
|
Refer to "Funds from
operations and funds from operations per share" in the Earnings
Press Release for additional details.
|
|
(2)
|
Refer to "2024
Dispositions" in the Earnings Press Release for additional
details.
|
|
Consolidated Balance
Sheets
December 31, 2024
(In thousands)
|
|
|
|
12/31/24
|
|
9/30/24
|
|
6/30/24
|
|
3/31/24
|
|
12/31/23
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investments in real
estate
|
|
$
32,110,039
|
|
$
32,951,777
|
|
$
32,673,839
|
|
$
32,323,138
|
|
$ 31,633,511
|
|
Investments in
unconsolidated real estate joint ventures
|
|
39,873
|
|
40,170
|
|
40,535
|
|
40,636
|
|
37,780
|
|
Cash and cash
equivalents
|
|
552,146
|
|
562,606
|
|
561,021
|
|
722,176
|
|
618,190
|
|
Restricted
cash
|
|
7,701
|
|
17,031
|
|
4,832
|
|
9,519
|
|
42,581
|
|
Tenant
receivables
|
|
6,409
|
|
6,980
|
|
6,822
|
|
7,469
|
|
8,211
|
|
Deferred
rent
|
|
1,187,031
|
|
1,216,176
|
|
1,190,336
|
|
1,138,936
|
|
1,050,319
|
|
Deferred leasing
costs
|
|
485,959
|
|
516,872
|
|
519,629
|
|
520,616
|
|
509,398
|
|
Investments
|
|
1,476,985
|
|
1,519,327
|
|
1,494,348
|
|
1,511,588
|
|
1,449,518
|
|
Other assets
|
|
1,661,306
|
|
1,657,189
|
|
1,356,503
|
|
1,424,968
|
|
1,421,894
|
|
Total assets
|
|
$
37,527,449
|
|
$
38,488,128
|
|
$
37,847,865
|
|
$
37,699,046
|
|
$ 36,771,402
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities,
Noncontrolling Interests, and Equity
|
|
|
|
|
|
|
|
|
|
|
|
Secured notes
payable
|
|
$
149,909
|
|
$
145,000
|
|
$
134,942
|
|
$
130,050
|
|
$
119,662
|
|
Unsecured senior notes
payable
|
|
12,094,465
|
|
12,092,012
|
|
12,089,561
|
|
12,087,113
|
|
11,096,028
|
|
Unsecured senior line
of credit and commercial paper
|
|
—
|
|
454,589
|
|
199,552
|
|
—
|
|
99,952
|
|
Accounts payable,
accrued expenses, and other liabilities
|
|
2,654,351
|
|
2,865,886
|
|
2,529,535
|
|
2,503,831
|
|
2,610,943
|
|
Dividends
payable
|
|
230,263
|
|
227,191
|
|
227,408
|
|
222,134
|
|
221,824
|
|
Total
liabilities
|
|
15,128,988
|
|
15,784,678
|
|
15,180,998
|
|
14,943,128
|
|
14,148,409
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
19,972
|
|
16,510
|
|
16,440
|
|
16,620
|
|
16,480
|
|
|
|
|
|
|
|
|
|
|
|
|
Alexandria Real Estate
Equities, Inc.'s stockholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock
|
|
1,722
|
|
1,722
|
|
1,720
|
|
1,720
|
|
1,719
|
|
Additional
paid-in capital
|
|
17,933,572
|
|
18,238,438
|
|
18,284,611
|
|
18,434,690
|
|
18,485,352
|
|
Accumulated
other comprehensive loss
|
|
(46,252)
|
|
(22,529)
|
|
(27,710)
|
|
(23,815)
|
|
(15,896)
|
|
Alexandria Real Estate
Equities, Inc.'s stockholders' equity
|
|
17,889,042
|
|
18,217,631
|
|
18,258,621
|
|
18,412,595
|
|
18,471,175
|
|
Noncontrolling
interests
|
|
4,489,447
|
|
4,469,309
|
|
4,391,806
|
|
4,326,703
|
|
4,135,338
|
|
Total equity
|
|
22,378,489
|
|
22,686,940
|
|
22,650,427
|
|
22,739,298
|
|
22,606,513
|
|
Total liabilities,
noncontrolling interests, and equity
|
|
$
37,527,449
|
|
$
38,488,128
|
|
$
37,847,865
|
|
$
37,699,046
|
|
$ 36,771,402
|
|
Funds From
Operations and Funds From Operations per Share
December 31, 2024
(In thousands)
|
|
|
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 U.S. generally
accepted accounting principles ("GAAP"), including our share of
amounts from consolidated and unconsolidated real estate joint
ventures, to funds from operations attributable to Alexandria's
common stockholders – diluted, and funds from operations
attributable to Alexandria's common stockholders – diluted, as
adjusted, for the periods below:
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
12/31/24
|
|
9/30/24
|
|
6/30/24
|
|
3/31/24
|
|
12/31/23
|
|
12/31/24
|
|
12/31/23
|
|
Net (loss) income
attributable to Alexandria's common stockholders – basic
and diluted
|
|
$
(64,922)
|
|
$
164,674
|
|
$ 42,917
|
|
$
166,886
|
|
$
(91,927)
|
|
$
309,555
|
|
$ 92,444
|
|
Depreciation and
amortization of real estate assets
|
|
327,198
|
|
291,258
|
|
288,118
|
|
284,950
|
|
281,939
|
|
1,191,524
|
|
1,080,529
|
|
Noncontrolling share
of depreciation and amortization from consolidated real
estate JVs
|
|
(34,986)
|
|
(32,457)
|
|
(31,364)
|
|
(30,904)
|
|
(30,137)
|
|
(129,711)
|
|
(115,349)
|
|
Our share of
depreciation and amortization from unconsolidated real estate
JVs
|
|
1,061
|
|
1,075
|
|
1,068
|
|
1,034
|
|
965
|
|
4,238
|
|
3,589
|
|
Gain on sales of real
estate
|
|
(100,109)
|
(1)
|
(27,114)
|
|
—
|
|
(392)
|
|
(62,227)
|
|
(127,615)
|
|
(277,037)
|
|
Impairment of real
estate – rental properties and land
|
|
184,532
|
(2)
|
5,741
|
|
2,182
|
|
—
|
|
263,982
|
|
192,455
|
|
450,428
|
|
Allocation to unvested
restricted stock awards
|
|
(1,182)
|
|
(2,908)
|
|
(1,305)
|
|
(3,469)
|
|
(2,268)
|
|
(8,696)
|
|
(5,175)
|
|
Funds from
operations attributable to Alexandria's common stockholders –
diluted(3)
|
|
311,592
|
|
400,269
|
|
301,616
|
|
418,105
|
|
360,327
|
|
1,431,750
|
|
1,229,429
|
|
Unrealized losses
(gains) on non-real estate investments
|
|
79,776
|
|
(2,610)
|
|
64,238
|
|
(29,158)
|
|
(19,479)
|
|
112,246
|
|
201,475
|
|
Impairment of non-real
estate investments
|
|
20,266
|
(4)
|
10,338
|
|
12,788
|
|
14,698
|
|
23,094
|
|
58,090
|
|
74,550
|
|
Impairment of real
estate
|
|
2,032
|
|
—
|
|
28,581
|
|
—
|
|
7,908
|
|
30,613
|
|
10,686
|
|
Acceleration of stock
compensation expense due to executive officer
resignations
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18,436
|
|
—
|
|
20,295
|
|
Provision for expected
credit losses on financial instruments
|
|
(434)
|
(5)
|
—
|
|
—
|
|
—
|
|
—
|
|
(434)
|
|
—
|
|
Allocation to unvested
restricted stock awards
|
|
(1,407)
|
|
(125)
|
|
(1,738)
|
|
247
|
|
(472)
|
|
(3,188)
|
|
(4,121)
|
|
Funds from
operations attributable to Alexandria's common stockholders –
diluted, as adjusted
|
|
$
411,825
|
|
$
407,872
|
|
$
405,485
|
|
$
403,892
|
|
$
389,814
|
|
$
1,629,077
|
|
$
1,532,314
|
|
|
|
Refer to "Definitions
and reconciliations" in the Supplemental Information for additional
details.
|
|
|
(1)
|
Includes our share of
gain on sale of real estate from one consolidated real estate joint
venture and one unconsolidated real estate joint venture. Refer to
"2024 Dispositions" in the Earnings Press Release for additional
details.
|
|
(2)
|
Primarily represents
impairment charges to reduce the carrying amount of our investments
in real estate assets to their respective estimated fair values
less costs to sell upon their classification as held for sale in
4Q24, including (i) $102.8 million primarily related to land
parcels in our Sorrento Mesa and University Town Center submarkets,
including land parcels sold during 4Q24 for a sales price
aggregating $55.0 million and additional land parcels expected
to be sold in 2025 with an approximate sales price aggregating
approximately $243.0 million, and (ii) $40.9 million for
four properties at One Moderna Way in our Route 128 submarket,
which was sold during 4Q24.
|
|
(3)
|
Calculated in
accordance with standards established by the Nareit Board of
Governors.
|
|
(4)
|
Primarily related to
three non-real estate investments in privately held entities that
do not report NAV.
|
|
(5)
|
Represents an
adjustment to the provision for expected credit losses for a direct
financing lease, as well as the initial recognition of a provision
for expected credit losses for two notes receivable issued in
connection with dispositions completed during 4Q24.
|
|
Funds From
Operations and Funds From Operations per Share (continued)
December 31, 2024
(In thousands, except per share amounts)
|
|
|
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
|
|
Year
Ended
|
|
|
12/31/24
|
|
9/30/24
|
|
6/30/24
|
|
3/31/24
|
|
12/31/23
|
|
12/31/24
|
|
12/31/23
|
|
Net (loss) income
per share attributable to Alexandria's common stockholders –
diluted
|
|
$
(0.38)
|
|
$
0.96
|
|
$
0.25
|
|
$
0.97
|
|
$
(0.54)
|
|
$
1.80
|
|
$
0.54
|
|
Depreciation and
amortization of real estate assets
|
|
1.70
|
|
1.51
|
|
1.50
|
|
1.48
|
|
1.48
|
|
6.20
|
|
5.67
|
|
Gain on sales of real
estate
|
|
(0.58)
|
|
(0.16)
|
|
—
|
|
—
|
|
(0.36)
|
|
(0.74)
|
|
(1.62)
|
|
Impairment of real
estate – rental properties and land
|
|
1.07
|
|
0.03
|
|
0.01
|
|
—
|
|
1.54
|
|
1.12
|
|
2.64
|
|
Allocation to unvested
restricted stock awards
|
|
—
|
|
(0.01)
|
|
(0.01)
|
|
(0.02)
|
|
(0.01)
|
|
(0.06)
|
|
(0.04)
|
|
Funds from
operations per share attributable to Alexandria's common
stockholders – diluted
|
|
1.81
|
|
2.33
|
|
1.75
|
|
2.43
|
|
2.11
|
|
8.32
|
|
7.19
|
|
Unrealized losses
(gains) on non-real estate investments
|
|
0.46
|
|
(0.02)
|
|
0.37
|
|
(0.17)
|
|
(0.11)
|
|
0.65
|
|
1.18
|
|
Impairment of non-real
estate investments
|
|
0.12
|
|
0.06
|
|
0.08
|
|
0.09
|
|
0.13
|
|
0.34
|
|
0.44
|
|
Impairment of real
estate
|
|
0.01
|
|
—
|
|
0.17
|
|
—
|
|
0.05
|
|
0.18
|
|
0.06
|
|
Acceleration of stock
compensation expense due to executive officer
resignations
|
|
—
|
|
—
|
|
—
|
|
—
|
|
0.11
|
|
—
|
|
0.12
|
|
Provision for expected
credit losses on financial instruments
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Allocation to unvested
restricted stock awards
|
|
(0.01)
|
|
—
|
|
(0.01)
|
|
—
|
|
(0.01)
|
|
(0.02)
|
|
(0.02)
|
|
Funds from
operations per share attributable to Alexandria's common
stockholders – diluted, as adjusted
|
|
$
2.39
|
|
$
2.37
|
|
$
2.36
|
|
$
2.35
|
|
$
2.28
|
|
$
9.47
|
|
$
8.97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
of common stock outstanding – diluted
|
|
172,262
|
|
172,058
|
|
172,013
|
|
171,949
|
|
171,096
|
|
172,071
|
|
170,909
|
|
|
Refer to "Definitions
and reconciliations" in the Supplemental Information for
additional details.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/alexandria-real-estate-equities-inc-reports-4q24-and-2024-net-loss-income-per-share--diluted-of-0-38-and-1-80--respectively-4q24-and-2024-ffo-per-share--diluted-as-adjusted-of-2-39-and-9-47--respectively-302361185.html
SOURCE Alexandria Real Estate Equities, Inc.
