Alexandria Real Estate Equities, Inc 8-K, filed Aug 11, 2003
Alexandria Real Estate Equities, Inc. (ARE)
About this 8-K
Alexandria Real Estate Equities, Inc filed this 8-K on August 11, 2003, reporting on events of August 8, 2003.
Items reported
- Item 12
- Item 7
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2003
ALEXANDRIA REAL ESTATE EQUITIES, INC.
(Exact name of registrant as specified in its charter)
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135 North Los Robles Avenue, Suite 250
Pasadena, California 91101
(Address of principal executive offices including zip code)
(626) 578-0777
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release dated August 8, 2003.
Item 12. Results of Operations and Financial Condition
On August 8, 2003, we issued a press release entitled "Alexandria Real Estate Equities, Inc. Reports Second Quarter 2003 Results" which sets forth our results of operations for the second quarter of 2003. A copy of that press release is attached hereto as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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ALEXANDRIA REAL ESTATE EQUITIES, INC. |
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August 8, 2003 |
By: /s/ JOEL S. MARCUS |
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Joel S. Marcus |
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Chief Executive Officer |
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(Principal Executive Officer) |
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By: /s/ PETER J. NELSON |
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Peter J. Nelson |
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Chief Financial Officer and Treasurer |
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(Principal Financial and Accounting Officer) |
EXHIBIT INDEX
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Exhibit Title |
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* Also provided in PDF format as a courtesy.
Exhibit 99.1
Contact: Joel S. Marcus
Chief Executive Officer
Alexandria Real Estate Equities, Inc.
(626) 578-9693
Alexandria Real Estate Equities, Inc.
Reports
Second Quarter 2003 Results
- Company Reports Funds from Operations of $1.05 Per Share
(Diluted), Up 8%, and
Net Income Available to Common
Stockholders of 54 Cents Per Share (Diluted),
Up 15%, for Second Quarter 2003 Over Second Quarter 2002 -
Highlights
- Second Quarter 2003 Funds from Operations (FFO) of $1.05 Per Share (Diluted)
- Second Quarter 2003 Total Revenues Up 15%, FFO Up 21% and FFO Per Share (Diluted) Up 8% Over Second Quarter 2002
- Second Quarter 2003 Net Income Available to Common Stockholders of 54 Cents Per Share (Diluted), Up 15% Over Second Quarter 2002
- Signed 13 Leases for 79,000 Square Feet of Space
- Expanded Unsecured Credit Facility to $440 Million
- Closed $30 Million Fixed Rate Loan at 6.36% Interest Rate
PASADENA, CA. - August 8, 2003 -- Alexandria Real Estate Equities, Inc. (NYSE: ARE) today announced operating and financial results for the quarter ended June 30, 2003.
For the second quarter of 2003, Alexandria reported FFO of $20,084,000, or $1.05 per share (diluted), on total revenues of $40,058,000, compared to FFO of $16,552,000, or 97 cents per share (diluted), on total revenues of $34,841,000 for the second quarter of 2002. Comparing the second quarter of 2003 to the second quarter of 2002, total revenues increased 15%, FFO increased 21% and FFO per share (diluted) increased 8%. FFO is a non-GAAP measure widely used by publicly-traded real estate investment trusts. A reconciliation of FFO to GAAP net income is included in the financial information accompanying this press release. Net income available to common stockholders for the second quarter of 2003 was $10,324,000, or 54 cents per share (diluted), compared to net income available to common stockholders of $7,995,000, or 47 cents per share (diluted), for the second quarter of 2002.
For the six months ended June 30, 2003, Alexandria reported FFO of $39,924,000, or $2.08 per share (diluted), on total revenues of $80,671,000, compared to FFO of $32,487,000, or $1.92 per share (diluted), on total revenues of $68,513,000 for the six months ended June 30, 2002. Net income available to common stockholders for the six months ended June 30, 2003 was $20,248,000, or $1.06 per share (diluted), as compared to $15,693,000, or 93 cents per share (diluted), for the six months ended June 30, 2002.
(more)
ALEXANDRIA REAL ESTATE EQUITIES, INC. REPORTS SECOND QUARTER 2003
RESULTS
Page 2
The Company announced that it had signed a total of 13 leases during the second quarter for approximately 79,000 square feet of space at 10 different properties (excluding 18 month-to-month leases which were effective during the quarter). Of this total, approximately 48,000 square feet were for redeveloped, developed or previously vacant space at eight properties, approximately 31,000 square feet of which were delivered from the Company's redevelopment or development programs with the remaining approximately 17,000 square feet for previously vacant space. The remaining approximately 31,000 square feet were for new or renewal leases related to previously leased space. Rental rates for new or renewal leases were on average approximately 18% higher than expiring leases. For the six months ended June 30, 2003, the Company signed a total of 32 leases for approximately 260,000 square feet of space (excluding month-to- month leases). Of this total, approximately 98,000 square feet were for redeveloped, developed or previously vacant space at 13 different properties, of which approximately 57,000 square feet were delivered from the Company's redevelopment or development programs. The remaining 162,000 square feet was for new or renewal space with rental rates on average approximately 7% lower than expiring leases. Excluding one lease for approximately 21,000 square feet in the San Francisco Bay market, rental rates for new or renewal leases for the six months period were on average approximately 3% higher than expiring rates.
In June 2003, the Company increased its unsecured credit facility from $425 million to $440 million. The facility matures in July 2005, and the Company has the right to extend the facility for an additional year at its option.
The Company also announced the closing of a secured debt financing for $30 million in August 2003. The debt bears interest at 6.36% and is payable based on a 30-year amortization schedule, and is due in 2013.
Based on the Company's current view of existing market conditions and certain assumptions, the Company has updated and revised its earnings guidance:
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2003 |
2004 |
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Fully diluted net income per common share * |
$2.24 |
$2.71 |
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Fully diluted FFO per common share |
$4.23 |
$4.55 |
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* excludes gains or losses on sales |
Alexandria Real Estate Equities, Inc. is a publicly traded real estate operating company focused principally on the ownership, operation, management, acquisition, expansion and selective redevelopment and development of properties containing office/laboratory space. Such properties are designed and improved for lease primarily to pharmaceutical, biotechnology, life science product and service companies, not-for-profit scientific research institutions, universities and related government agencies. Alexandria's portfolio currently consists of 88 properties comprising approximately 5.7 million square feet of office/laboratory space.
This press release contains forward-looking statements within the meaning of the federal securities laws. The Company's 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 the Company's Form 10-K Annual Report and 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 Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
-------------- -------------- -------------- --------------
Income statement data
Total revenues $ 40,058 $ 34,841 $ 80,671 $ 68,513
Expenses
Rental operations 8,347 6,898 17,133 13,556
General and administrative 3,544 3,308 7,093 6,781
Interest 6,512 6,517 13,383 12,876
Depreciation and amortization 9,760 8,314 19,221 16,308
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28,163 25,037 56,830 49,521
Income from continuing operations 11,895 9,804 23,841 18,992
Income from discontinued operations 654 416 857 831
-------------- -------------- -------------- --------------
Net income 12,549 10,220 24,698 19,823
Dividends on preferred stock 2,225 2,225 4,450 4,130
-------------- -------------- -------------- --------------
Net income available to common stockholders $ 10,324 $ 7,995 20,248 15,693
============== ============== ============== ==============
Weighted average shares of
common stock outstanding
-Basic 18,952,445 16,747,201 18,924,290 16,579,163
============== ============== ============== ==============
-Diluted 19,190,472 17,117,830 19,160,395 16,920,762
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Basic income per common share
Income from continuing operations $ 0.63 $ 0.59 $ 1.26 $ 1.15
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Income from discontinued operations $ 0.03 $ 0.02 $ 0.05 $ 0.05
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Net income $ 0.66 $ 0.61 $ 1.31 $ 1.20
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Net income available to common stockholders $ 0.54 $ 0.48 $ 1.07 $ 0.95
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Diluted income per common share
Income from continuing operations $ 0.62 $ 0.57 $ 1.24 $ 1.12
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Income from discontinued operations $ 0.03 $ 0.02 $ 0.04 $ 0.05
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Net income $ 0.65 $ 0.60 $ 1.29 $ 1.17
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Net income available to common stockholders $ 0.54 $ 0.47 $ 1.06 $ 0.93
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ALEXANDRIA REAL ESTATE EQUITIES, INC.
Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
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Funds from operations (1)
Net income $ 12,549 $ 10,220 $ 24,698 $ 19,823
Add
Depreciation and amortization (2) 9,760 8,557 19,221 16,794
Loss on sale of property (3) - - 455 -
Subtract
Dividends on preferred stock (2,225) (2,225) (4,450) (4,130)
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Funds from operations (FFO) $ 20,084 $ 16,552 $ 39,924 $ 32,487
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FFO per common share
-Basic $ 1.06 $ 0.99 $ 2.11 $ 1.96
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-Diluted $ 1.05 $ 0.97 $ 2.08 $ 1.92
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Reconciliation of net income available to common
stockholders per share (diluted) to FFO per
common share (diluted)
Net income available to common stockholders per
share (diluted) $ 0.54 $ 0.47 $ 1.06 $ 0.93
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Depreciation and amortization per common share (2) $ 0.51 $ 0.50 $ 1.00 $ 0.99
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Loss on sale of property per common share (3) $ - $ - $ 0.02 $ -
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FFO per common share (diluted) $ 1.05 $ 0.97 $ 2.08 $ 1.92
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As of As of
June 30, 2003 June 30, 2002
Balance sheet data -------------- --------------
Rental properties, net $ 977,521 $ 855,287
Total assets $ 1,231,751 $ 1,041,754
Total liabilities $ 742,278 $ 634,581
Stockholders' equity $ 489,473 $ 407,173
- 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 mis-correlation 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 by 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"), 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. While FFO is a relevant and widely used measure of operating performance of REITs, it should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our 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. We believe that net income is the most directly comparable GAAP financial measure to FFO.
- Includes depreciation and amortization on assets held for sale reflected as discontinued operations (for the periods prior to when such assets were designated as held for sale.
- Loss on sale of property relates to the disposition of a property in the San Francisco Bay market during the quarter ended March 31, 2003. This loss is included on the income statement in income from discontinued operations.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Supplemental Financial Information
(Dollars in thousands, except per share data)
(Unaudited)
Quarterly Supplemental Financial Information
For the Three Months Ended
6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
Operational data ----------- ----------- ----------- ----------- -----------
Breakdown of Revenues from Continuing Operations (a)
Rental Income $ 31,670 $ 31,646 $ 30,412 $ 28,654 $ 27,853
Tenant Recoveries 7,975 8,623 8,360 7,911 6,683
Interest and Other Income 413 344 523 299 305
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Total $ 40,058 $ 40,613 $ 39,295 $ 36,864 $ 34,841
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Funds from Operations Per Share - Diluted (b) $ 1.05 $ 1.04 $ 1.03 $ 0.98 $ 0.97
Dividends Per Share on Common Stock $ 0.53 $ 0.53 $ 0.50 $ 0.50 $ 0.50
Dividend Payout Ratio (Common Stock) 50.5% 50.8% 48.4% 52.4% 53.5%
As of
6/30/2003 3/31/2003 12/31/2002 9/30/2002 6/30/2002
Other data ----------- ----------- ----------- ----------- -----------
Number of Shares of Common Stock Outstanding
at end of period 19,058,773 19,006,223 18,973,957 18,969,425 16,897,050
Number of Properties (c)
Acquired/completed during period -- 1 2 2 2
Sold/reconstruction during period -- (2) -- -- --
Owned at end of period 88 88 89 87 85
Square Feet (c)
Acquired/completed during period -- 51,340 158,336 98,497 170,244
Sold/reconstruction during period -- (70,281) -- -- --
Owned at end of period 5,728,208 5,728,208 5,747,149 5,588,813 5,490,316
- The historical results above exclude the results of assets held for sale which have been reflected as discontinued operations.
- The White Paper on Funds from Operations ("FFO") issued by the Board of Governors of the National Association of Real Estate Investment Trusts in April 2002 defines FFO as net income, computed in accordance with generally accepted accounting principles, excluding gains or (losses) from sales, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. See page 4 for a reconciliation of FFO for the current quarter to net income, the most directly comparable GAAP financial measure.
- Includes assets held for sale.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, December 31,
2003 2002
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Assets
Rental properties, net $ 977,521 $ 976,422
Properties under development 130,231 68,386
Cash and cash equivalents 3,998 3,790
Tenant security deposits and other restricted cash 9,967 8,020
Tenant receivables 2,470 2,641
Deferred rent 29,463 26,063
Other assets 78,101 73,921
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Total assets $ 1,231,751 $ 1,159,243
============ ============
Liabilities and stockholders' equity
Secured notes payable $ 311,812 $ 276,878
Unsecured line of credit 370,000 338,000
Accounts payable, accrued expenses and tenant
security deposits 48,476 47,118
Dividends payable 11,990 11,394
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Total liabilities 742,278 673,390
Total stockholders' equity 489,473 485,853
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Total liabilities and stockholders' equity $ 1,231,751 $ 1,159,243
============ ============
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Debt
June 30, 2003
(Dollars in thousands)
(Unaudited)
Principal Amortization/Maturities (1)
Year Amount
- ----------------------- -----------
2003 $ 3,069
2004 9,221
2005 28,174 (2)
2006 25,367
2007 31,383
Thereafter 213,030
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Subtotal 310,244
Unamortized Premium 1,568
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Total $ 311,812
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Secured and Unsecured Debt Analysis
Weighted Average Weighted
Effective Average
Balance Interest Rate Maturity
----------- -------------- -----------
Secured Debt $ 311,812 7.14% 6.9 Years
Unsecured Debt 370,000 2.84%(3) 2.1 Years
----------- -------------- -----------
Total Debt $ 681,812 4.81% 4.3 Years
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Floating and Fixed Rate Debt Analysis
Weighted Average Weighted
Effective Average
Balance Interest Rate Maturity
----------- -------------- -----------
Fixed Rate Debt $ 289,292 7.47% 7.3 Years
Floating Rate Debt 392,520 2.84%(3) 2.1 Years
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Total Debt $ 681,812 4.81% 4.3 Years
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- Excludes the line of credit
- Of this amount, $22,520,000 represents the outstanding balance on a loan related to a property developed in the San Francisco Bay market, which has a maturity of January 2005, and may be extended, at the borrower's option, for an additional year.
- Does not reflect the impact of swap agreements which hedge certain floating rate debt.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Interest Rate Swap Agreements
June 30, 2003
(Dollars in thousands)
(Unaudited)
Notional Interest
Transaction Dates Effective Dates Amounts Pay Rates (1) Termination Dates
- ------------------ ------------------ ---------- ------------ -----------------
March 2002 December 31, 2002 $ 50,000 5.364% December 31, 2004
July 2002 January 1, 2003 $ 25,000 3.855% June 30, 2005
July 2002 January 1, 2003 $ 25,000 3.865% June 30, 2005
December 2002 January 2, 2003 $ 25,000 3.285% June 30, 2006
December 2002 January 2, 2003 $ 25,000 3.285% June 30, 2006
November 2002 June 1, 2003 $ 25,000 3.115% December 31, 2005
November 2002 June 1, 2003 $ 25,000 3.155% December 31, 2005
- For all interest rate swap agreements, interest is received based on one month LIBOR.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Operating Portfolio
June 30, 2003
(Dollars in thousands)
Number of Rentable Annualized Occupancy
Properties Square Feet Base Rent Percentages
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Markets
California - Pasadena 1 31,343 $ 417 66.5%
California - San Diego 21 953,258 26,407 95.1%
California - San Francisco Bay 9 515,526 16,188 100.0%
Eastern Massachusetts 10 695,394 24,366 90.8%
New Jersey/Suburban Philadelphia 6 346,919 6,251 100.0%
Southeast 5 259,414 4,309 87.2% (1)
Suburban Washington D.C. 21 1,730,555 28,374 96.1%
Washington - Seattle 5 440,284 16,106 99.8%
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Total (2) 78 4,972,693 $ 122,418 95.5%
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- All, or substantially all, of the vacant space is office or warehouse space.
- Excludes properties under full or partial redevelopment.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Same Property Comparisons
(Dollars in thousands)
(Unaudited)
GAAP Basis (1) Cash Basis (1)
-------------------------------- -------------------------------
Quarter Ended Quarter Ended
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6/30/03 6/30/02 % Change 6/30/03 6/30/02 % Change
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Revenue $ 30,100 $ 29,080 3.5% $ 29,506 $ 28,500 3.5%
Operating expenses 6,485 5,898 10.0% 6,485 5,898 10.0%
Revenue less ---------- ---------- --------- ---------- ---------- --------
operating expenses $ 23,615 $ 23,182 1.9% $ 23,021 $ 22,602 1.9%
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GAAP Basis (1) Cash Basis (1)
-------------------------------- -------------------------------
Six Months Ended Six Months Ended
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6/30/03 6/30/02 % Change 6/30/03 6/30/02 % Change
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Revenue $ 57,077 $ 54,698 4.3% $ 55,763 $ 53,051 5.1%
Operating expenses 12,214 10,791 13.2% 12,214 10,791 13.2%
Revenue less ---------- ---------- --------- ---------- ---------- --------
operating expenses $ 44,863 $ 43,907 2.2% $ 43,549 $ 42,260 3.1%
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NOTE: This summary represents operating data for all properties that were owned and fully operating for the entire periods presented (the "Second Quarter Same Properties" for the Quarterly periods and "Six Months Same Properties" for the Six Month periods).
- Revenue less operating expenses computed under GAAP is total revenue associated with the Second Quarter Same Properties and the Six 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 Second Quarter Same Properties and the Six Months Same Properties, as applicable, (excluding termination fees, if any) less property operating expenses, adjusted to exclude the effect of straight-line rent adjustments required by GAAP. Straight-line adjustments for the quarter ended June 30, 2003 and 2002 for the Second Quarter Same Properties were $594,000 and $580,000, respectively. Straight-line rent adjustments for the six months ended June 30, 2003 and 2002 for the Six Months Same Properties were $1,314,000 and $1,647,000, 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 non-cash adjustments to rental revenue.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Leasing Activity
For the Quarter Ended June 30, 2003
Rental TI's/Lease Average
Number Square Expiring New Rate Commissions Lease
of Leases Footage Rates Rates Changes Per Foot Terms
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Leasing Activity
Lease Expirations
Cash Basis 28 170,345 $25.52 -- -- -- --
GAAP Basis 28 170,345 $25.25 -- -- -- --
Renewed / Releasable Space Leased
Cash Basis 4 30,697 $15.00 $16.76 11.7% $0.36 1.4 years
GAAP Basis 4 30,697 $14.38 $16.97 18.0% $0.36 1.4 years
Month-to-Month Leases In Effect
Cash Basis 18 83,111 $19.85 $19.84 -0.1% -- --
GAAP Basis 18 83,111 $19.79 $19.80 0.1% -- --
Redeveloped/Developed/
Vacant Space Leased
Cash Basis 9 47,882 -- $24.37 -- $3.54 5.6 Years
GAAP Basis 9 47,882 -- $24.46 -- $3.54 5.6 Years
Leasing Activity Summary
Excluding Month-to-Month Leases
Cash Basis 13 78,579 -- $21.39 -- -- --
GAAP Basis 13 78,579 -- $21.54 -- -- --
Including Month-to-Month Leases
Cash Basis 31 161,690 -- $20.59 -- -- --
GAAP Basis 31 161,690 -- $20.64 -- -- --
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Leasing Activity
For the Six Months Ended June 30, 2003
Rental TI's/Lease Average
Number Square Expiring New Rate Commissions Lease
of Leases Footage Rates Rates Changes Per Foot Terms
--------- --------- --------- --------- -------- ----------- ---------
Leasing Activity
Lease Expirations
Cash Basis 40 274,348 $24.02 -- -- -- --
GAAP Basis 40 274,348 $23.99 -- -- -- --
Renewed / Releasable Space Leased
Cash Basis 13 162,116 $25.35 $22.27 -12.1% (a) $0.92 2.0 Years
GAAP Basis 13 162,116 $25.48 $23.75 -6.8% (a) $0.92 2.0 Years
Month-to-Month Leases In Effect
Cash Basis 18 83,111 $20.01 $19.81 -1.0% -- --
GAAP Basis 18 83,111 $19.83 $19.77 -0.3% -- --
Redeveloped/Developed/
Vacant Space Leased
Cash Basis 19 98,171 -- $27.14 -- $2.56 4.0 Years
GAAP Basis 19 98,171 -- $27.42 -- $2.56 4.0 Years
Leasing Activity Summary
Excluding Month-to-Month Leases
Cash Basis 32 260,287 -- $24.11 -- -- --
GAAP Basis 32 260,287 -- $25.13 -- -- --
Including Month-to-Month Leases
Cash Basis 50 343,398 -- $23.07 -- -- --
GAAP Basis 50 343,398 -- $23.84 -- -- --
- Excluding a lease for 21,316 square feet in the San Francisco Bay market, rental rates for renewed or released space were on average 2.1% higher than expiring rates on a Cash Basis and 3.4% higher than expiring rates on a GAAP Basis.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Lease Expirations
June 30, 2003
Square Percentage of Annualized Base
Year of Number of Footage of Aggregate Rent of Expiring
Lease Leases Expiring Portfolio Lease Leases (per
Expiration Expiring Leases Square Feet square foot)
- --------- ---------- ---------- -------------- ----------------
2003 45 (1) 423,512 8.3% $21.12
2004 45 565,104 11.1% $20.95
2005 19 275,925 5.4% $28.09
2006 31 783,735 15.4% $23.70
2007 13 315,001 6.2% $24.32
- Includes 21 month-to-month leases and leases expiring between July 1, 2003 and December 31, 2003.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Properties Under Development
June 30, 2003
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Estimated |
Total |
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In-Service |
Rentable |
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Markets |
Dates |
Square Footage |
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California - San Diego |
4Q03 |
45,000 |
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Southeast |
2Q04 |
96,000 |
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Suburban Washington D.C. |
3Q03 |
95,000 |
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Suburban Washington D.C. |
4Q04 |
76,000 |
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Washington - Seattle |
3Q04 |
165,000 |
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Total |
477,000 |
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ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Properties Under Redevelopment
June 30, 2003
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Estimated |
Total Rentable |
Total Square |
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In-Service |
Square Footage |
Footage Being |
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Markets |
Dates |
of Property (1) |
Redeveloped |
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California - San Diego |
4Q03 |
17,590 |
17,590 |
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California - San Francisco Bay (2) |
Various |
153,837 |
45,141 |
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California - San Francisco Bay |
Various |
98,964 |
42,632 |
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Eastern Massachusetts |
4Q03 |
40,000 |
40,000 |
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Eastern Massachusetts |
1Q04 |
96,150 |
96,150 |
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Eastern Massachusetts |
3Q04 |
51,340 |
41,796 |
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Southeast |
Various |
119,916 |
50,519 |
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Suburban Washington D.C. |
Various |
131,415 |
67,709 |
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Washington - Seattle |
TBD |
46,303 |
15,178 |
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Total |
755,515 |
416,715 |
- Average occupancy for properties under full or partial redevelopment as of June 30, 2003 was approximately 44.8%.
- Includes two adjacent properties.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Summary of Capital Expenditures
For the Six Months Ended June 30, 2003
(Dollars in thousands)
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Property-related capital expenditures (1) |
$ 389 |
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Leasing costs (2) |
$ 259 |
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Property-related redevelopment costs (3) |
$ 25,815 |
|
Property-related development costs |
$ 18,846 |
|
Purchase of property under development |
$ 36,332 |
|
Purchase of rental property (4) |
$ 7,089 |
- Property-related capital expenditures include all capital expenditures except capital expenditures that are recoverable from tenants, revenue-enhancing capital expenditures or costs related to the redevelopment of a property. 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 88% 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.
- Leasing costs consist of tenant improvements and leasing commissions related to leasing of acquired vacant space and second generation space. Leasing costs exclude tenant improvements that are revenue-enhancing.
- Includes certain capital expenditures recoverable from tenants.
- Purchase amount includes the assumption of a secured note payable of approximately $3,384,000.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Conference Call Information
For the Second Quarter Ended June 30, 2003
Alexandria Real Estate Equities, Inc. will be hosting a conference call to discuss its operating and financial results for the second quarter ended June 30, 2003.
|
Date: |
August 11, 2003 |
|
Time: |
12:00 Noon Eastern Daylight Time |
|
Phone Number: |
(913) 981-5510 |
|
Confirmation Code: |
452600 |