Alexandria Real Estate Equities Reports Fourth Quarter and Year Ended December 31, 2000 Results.Business Editors PASADENA, Calif.--(BUSINESS WIRE)--Feb. 8, 2001 Company Reports Funds from Operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. of 83 Cents Per Share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. (Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), for Fourth Quarter, Up 14% Over Fourth Quarter 1999 Highlights: -- Fourth Quarter Funds from Operations (FFO FFO See: Funds from operations ) of 83 Cents Per Share (Diluted) -- Fourth Quarter 2000 Total Revenues Up 27%, FFO Up 29% and FFO Per Share (Diluted) Up 14% Over Fourth Quarter 1999 -- 2000 Total Revenues Up 24%, FFO Up 21% and FFO Per Share (Diluted) Up 12% Over 1999 -- Signed 14 Leases for 134,000 Square Feet of Space During the Fourth Quarter -- Completed Acquisition of Office/Laboratory Property Comprising 23,000 Square Feet in San Diego, California for $1.9 Million -- Completed Acquisition of Office/Laboratory Property Comprising 60,000 Square Feet in Suburban Washington, D.C. for $7.6 Million -- Closed $25.2 Million Construction Loan Alexandria Alexandria, city, Egypt Alexandria, Arabic Al Iskandariyah, city (1996 pop. 3,328,196), N Egypt, on the Mediterranean Sea. It is at the western extremity of the Nile River delta, situated on a narrow isthmus between the sea and Lake Mareotis (Maryut). Real Estate Equities, Inc. (NYSE NYSE See: New York Stock Exchange : ARE) today announced financial and operating results for the fourth quarter and year ended December December: see month. 31, 2000. For the fourth quarter, Alexandria reported FFO of $12,998,000, or 83 cents per share (diluted), on total revenues of $29,563,000, compared to FFO of $10,095,000, or 73 cents per share (diluted), on total revenues of $23,234,000 for the fourth quarter of 1999. Comparing the fourth quarter of 2000 to the fourth quarter of 1999, total revenues increased 27%, FFO increased 29% and FFO per share (diluted) increased 14%. Net income available to common stockholders for the fourth quarter of 2000 was $6,484,000, or 41 cents per share (diluted), compared to net income available to common stockholders of $4,173,000, or 30 cents per share (diluted), for the fourth quarter of 1999. For the year ended December 31, 2000, Alexandria reported FFO of $46,594,000, or $3.17 per share (diluted), on total revenues of $106,910,000, compared to FFO of $38,549,000, or $2.82 per share (diluted), on total revenues of $86,262,000 for the year ended December 31, 1999. Net income available to common stockholders for 2000 was $22,343,000, or $1.52 per share (diluted), as compared to $20,017,000, or $1.46 per share (diluted), for 1999. "We are very pleased with our solid fourth quarter and full year 2000 results, as well as with our significant achievements during the year," said Joel S Joel, book of the Bible Joel, prophetic book of the Bible. It is a collection of the oracles of an otherwise unknown prophet, dated variously from the 9th to the 3d cent. B.C., though a date in c.400 B.C. is likely. . Marcus Marcus, in the Bible: see Mark, Saint. , Chief Executive Officer. "We have continued to experience consistent and broad-based broad-based Of or relating to an index or average that provides a good representation of the overall market. The S&P 500 and NYSE Composite are generally regarded as broad-based stock indexes, while the popular Dow Jones Industrial Average is biased internal and external growth due to our business model and multi-faceted strategies which capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our unique platform of office/laboratory properties and operations clustered clus·ter n. 1. A group of the same or similar elements gathered or occurring closely together; a bunch: "She held out her hand, a small tight cluster of fingers" Anne Tyler. in the key life science markets on the west and east coasts. In general, these markets tend to be relatively steady during varying business cycles." In announcing its fourth quarter results, the Company announced that it had signed a total of 14 leases during the quarter for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 134,000 square feet of space at ten different properties. Of this total, approximately 46,000 square feet was for previously vacant space at five properties, which included 44,000 square feet at four properties in the Company's redevelopment program. The remaining 88,000 square feet was for new or renewal space. For the year ended December 31, 2000, the Company signed a total of 53 leases for approximately 845,000 square feet of space. Of this total, approximately 346,000 square feet was for previously vacant space, while approximately 499,000 square feet was for new or renewal leases. "Our leasing activity during the fourth quarter and the full year represents consistently solid performance in each of our markets," said James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. H. Richardson Richardson, city (1990 pop. 74,840), Dallas and Collins counties, N Tex., a suburb of Dallas; founded in the 1850s, inc. as a city 1956. Richardson manufactures telecommunications equipment, medical devices, supercomputers, computer chips, and fiber optics. , President. The Company also announced that it acquired a property in San Diego, California “San Diego” redirects here. For other uses, see San Diego (disambiguation). San Diego is a coastal Southern California city located in the southwestern corner of the continental United States. As of 2006, the city has a population of 1,256,951. , approximating approximating, adj See approximal. 23,000 square feet of space for approximately $1.9 million in cash. This acquisition closed in November November: see month. 2000. The property is currently under redevelopment. "This property adds to our pipeline of strategic value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. redevelopment projects which will contribute to our future internal growth," said Mr. Richardson. Separately, the Company announced it had acquired an office/laboratory property in its Suburban Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. market area for $7.6 million in cash in January January: see month. 2001. The property contains 60,000 square feet and is fully leased to a single tenant. The Company also announced that in December 2000 it closed on a $25.2 million construction loan secured by one of the Company's properties in its San Francisco Bay area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay market. The loan bears interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 1.7% and is payable in monthly installments of interest only. The loan is due in June June: see month. 2003. "Closing this loan allows us to maintain maximum financial flexibility by retaining capacity on our unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. line of credit," said Peter J. Nelson, Senior Vice President and Chief Financial Officer. Alexandria Real Estate Equities, Inc. is a publicly traded real estate operating company operating company A business that engages in transactions with outsiders. focused principally on the ownership, operation, management, acquisition, conversion, retrofit ret·ro·fit v. ret·ro·fit·ted or ret·ro·fit, ret·ro·fit·ting, ret·ro·fits v.tr. 1. To provide (a jet, automobile, computer, or factory, for example) with parts, devices, or equipment not in , expansion and selective development and redevelopment of properties containing office/laboratory space. Such properties are designed and improved for lease primarily to pharmaceutical, biotechnology biotechnology, the use of biological processes, as through the exploitation and manipulation of living organisms or biological systems, in the development or manufacture of a product or in the technological solution to a problem. , diagnostic, device, contract research and personal care products companies, major scientific research institutions, related government agencies and technology enterprises. Alexandria's portfolio currently consists of 76 properties comprising approximately 4.9 million square feet of office/laboratory space. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the federal securities laws. The Company's actual results might 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. Annual Report and other periodic reports filed with the Securities and Exchange Commission.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Financial Information
(Unaudited)
(Dollars in thousands, except per share data)
Three Months Three Months Year Ended Year Ended
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
------------------------------------------------
Income statement data:
Total Revenues $ 29,563 $ 23,234 $ 106,910 $ 86,262
Expenses:
Rental operations 6,045 5,112 21,873 19,003
General and
administrative 2,398 2,062 8,986 6,977
Interest 7,206 5,049 25,791 19,697
Depreciation and
amortization 6,514 5,922 24,251 18,532
----------- --------- --------- ----------
$ 22,163 $ 18,145 $ 80,901 $ 64,209
=========== ========= ========= ==========
Net Income $ 7,400 $ 5,089 $ 26,009 $ 22,053
=========== ========= ========= ==========
Dividends on preferred
stock $ 916 $ 916 $ 3,666 $ 2,036
=========== ========= ========= ==========
Net income available
to common
stockholders $ 6,484 $ 4,173 $ 22,343 $ 20,017
========== ========= ========= ==========
Weighted average
shares of common
stock outstanding:
-Basic 15,446,650 13,740,665 14,460,711 13,525,840
========== ========== ========== ==========
-Diluted 15,728,876 13,874,140 14,699,478 13,670,568
========== ========== ========== ==========
Net income per common
share:
-Basic $ 0.42 $ 0.30 $ 1.55 $ 1.48
========== ========== ========== ==========
-Diluted $ 0.41 $ 0.30 $ 1.52 $ 1.46
========== ========== ========== ==========
Funds from operations:
Net income $ 7,400 $ 5,089 $ 26,009 $ 22,053
Add:
Depreciation and
amortization 6,514 5,922 24,251 18,532
Subtract:
Dividends on
preferred stock (916) (916) (3,666) (2,036)
----------- ------------ ----------- ----------
Funds from operations
(FFO) $ 12,998 $ 10,095 $ 46,594 $ 38,549
=========== ============ =========== ==========
FFO per common share:
-Basic $ 0.84 $ 0.73 $ 3.22 $ 2.85
=========== ============ =========== ==========
-Diluted $ 0.83 $ 0.73 $ 3.17 $ 2.82
=========== ============ =========== ==========
As of As of
December 31, 2000 December 31, 1999
------------------- --------------------
Balance sheet data:
Rental properties,
net $ 679,653 $ 554,706
Total assets $ 780,984 $ 643,118
Total liabilities $ 461,832 $ 380,535
Stockholders'
equity $ 319,152 $ 262,583
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Supplemental Financial Information
(Dollars in thousands, except per share data)
(unaudited)
For the Three Months Ended
12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
------------------------------------------------------
Operations Data:
Breakdown of
Revenues:
Rental Income $ 22,606 21,581 $ 19,657 $ 18,655 $ 18,273
Tenant
Recoveries 5,784 5,663 4,700 4,758 4,569
Interest and
Other Income 1,173 1,231 553 549 392
----------------------------------------------------
Total $ 29,563 $ 28,475 $ 24,910 $ 23,962 $ 23,234
====================================================
Funds From
Operations Per
Share-Diluted
(1) $ 0.83 $ 0.82 $ 0.77 $ 0.75 $ 0.73
Dividends Per
Share on Common
Stock $ 0.43 $ 0.43 $ 0.43 $ 0.43 $ 0.43
Dividend Payout
Ratio
(Common Stock) 51.4% 55.3% 55.8% 56.9% 58.6%
As of
12/31/00 9/30/00 6/30/00 3/31/00 12/31/99
-----------------------------------------------------
Other Data:
Number of
Properties:
Acquired/
completed
during
period 1 9 4 3 1
Sold during
period - - - - (1)
Owned at end
of period 75 74 65 61 58
Square Feet:
Acquired/
completed
during
period 23,391 398,154 188,387 219,958 33,954
Sold during
period - - - - (24,460)
Owned at end
of period 4,856,650 4,833,259 4,435,105 4,246,718 4,026,760
(1) The White Paper on Funds From Operations ("FFO") issued by the
Board of Governors of the National Association of Real Estate
Investment Trusts in October 1999 defines FFO as net income, computed
in accordance with generally accepted accounting principles, excluding
gains or losses from sales of property, plus depreciation and
amortization and after adjustments for unconsolidated partnerships and
joint ventures.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Condensed Consolidated Balance Sheet
(In thousands)
December 31, December 31,
2000 1999
Assets:
Rental properties, net $ 679,653 $ 554,706
Property under development 26,092 44,121
Cash and cash equivalents 2,776 3,446
Tenant security deposits and other
restricted cash 6,995 4,681
Secured note receivable 6,000 6,000
Tenant receivables 2,835 3,432
Deferred rent 14,945 9,014
Other assets 41,688 17,718
Total assets $ 780,984 $ 643,118
Liabilities and Stockholders' Equity:
Secured notes payable $ 200,256 $ 158,512
Unsecured line of credit 231,000 192,000
Accounts payable, accrued
expenses and tenant security deposits 23,123 23,349
Dividends payable 7,453 6,674
Total liabilities 461,832 380,535
Stockholders' Equity:
Series A preferred stock 38,588 38,588
Common stock 155 137
Additional paid-in capital 280,409 223,858
Retained earnings - -
Total stockholders' equity 319,152 262,583
Total liabilities
and stockholders' equity $ 780,984 $ 643,118
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Debt
As of December 31, 2000
(Dollars in thousands)
(unaudited)
Principal Amortization/Maturities (1)
Year Amount
2001 $ 3,885
2002 23,183 (2)
2003 11,563
2004 4,199
2005 12,361
Thereafter 142,609
Subtotal 197,800
Unamortized Premium 2,456
Total $ 200,256
Secured and Unsecured Debt Analysis
Weighted Average Weighted
Effective Average
Balance Interest Rate Maturity
Secured Debt $ 200,256 7.99% 8.2 Years
Unsecured Debt 231,000 8.32% (3) 2.2 Years
Total Debt $ 431,256 8.17% 5.0 Years
Floating and Fixed Rate Debt Analysis
Weighted Average Weighted
Effective Average
Balance Interest Rate Maturity
Fixed Rate Debt $ 174,257 7.93% 9.3 Years
Floating Rate Debt 256,999 8.33% (3) 2.1 Years
Total Debt $ 431,256 8.17% 5.0 Years
(1) Excludes line of credit
(2) Of this amount, $18,981,000 represents the outstanding balance on
a construction loan related to a property developed in Suburban
Washington, D.C., which is due in January 2002.
(3) Does not reflect the impact of swap agreements which hedge
floating rate debt.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Same Property Comparison
(Dollars in thousands)
(unaudited)
GAAP Basis Cash Basis (1)
Quarter Ended Quarter Ended
12/31/00 12/31/99 %Change 12/31/00 12/31/99 %Change
Revenue $23,041 $21,324 8.1% $ 22,396 $ 20,642 8.5%
Rental operations 5,449 4,909 11.0% 5,449 4,909 11.0%
Net operating
income $17,592 $16,415 7.2% $ 16,947 $ 15,733 7.7%
Year Ended Year Ended
12/31/00 12/31/99 %Change 12/31/00 12/31/99 %Change
Revenue $74,620 $70,210 6.3% $ 73,097 $ 68,065 7.4%
Rental operations 17,070 16,116 5.9% 17,070 16,116 5.9%
Net operating
income $57,550 $54,094 6.4% $ 56,027 $ 51,949 7.9%
(1) Excludes straight line rent adjustments
Note: This summary represents operating data for the properties
that were owned and fully operating for the entire periods presented.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Portfolio Summary
As of December 31, 2000
(Dollars in thousands)
Number of Rentable Annualized Occupancy
Properties Square Feet Base Rent Percentage
Region:
Suburban Washington DC 19 1,685,204 $26,571,232 97.9% (1)
California - San Diego 19 836,264 21,902,221 100.0%
California -
San Francisco Bay 6 399,424 9,114,811 99.8% (1)
Southeast 5 340,469 5,240,787 90.3% (1)
New Jersey/
Suburban Philadelphia 5 268,418 4,294,657 100.0%
Eastern Massachusetts 6 384,974 10,561,600 100.0%
Washington - Seattle 3 327,754 9,352,833 100.0%
Subtotal 63 4,242,507 87,038,141 98.4%
Redevelopment Properties 12 614,143 6,157,821 39.0%
Total 75 4,856,650 $93,195,962 90.8%
(1) All, or substantially all, of the vacant space is office or
warehouse space.
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Lease Expirations
December 31, 2000
Annualized
Year Number Square Footage Percentage Base Rent of
of of of of Expiring
Lease Leases Expiring Aggregate Portfolio Leases (per
Expiration Expiring Leases Leased Square Feet square foot)
2001 48 651,925 14.8% $19.86
2002 26 436,759 9.9% $18.72
2003 22 462,864 10.5% $19.39
2004 19 378,109 8.6% $19.32
2005 15 308,470 7.0% $25.70
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Lease Activity Analysis
For the Quarter Ended December 31, 2000
Rental TI's/Lease Average
Number Square Expiring New Rate Commissions Lease
of Leases Footage Rate Rate Increase per foot Term
Lease Activity -
Expired Leases
Lease
Expirations
Cash Basis 26 171,337 $16.59 - - - -
GAAP Basis 26 171,337 $16.57 - - - -
Renewed /
Released Space
Cash Basis 10 88,068 $19.31 $21.44 11.0% $0.87 1.3 years
GAAP Basis 10 88,068 $19.36 $21.66 11.9% $0.87 1.3 years
Month-to-Month
Leases
Cash Basis 11 63,100 $12.11 $12.41 2.5% - -
GAAP Basis 11 63,100 $11.99 $12.41 3.5% - -
Total Leasing
Cash Basis 21 151,168 $16.30 $17.67 8.4% - -
GAAP Basis 21 151,168 $16.29 $17.80 9.3% - -
Vacant Space
Leased
Cash Basis 4 46,172 - $29.36 - $17.95 6.1 years
GAAP Basis 4 46,172 - $30.69 - $17.95 6.1 years
All Lease
Activity
Cash Basis 25 197,340 - $20.40 - - -
GAAP Basis 25 197,340 - $20.81 - - -
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Lease Activity Analysis
For the Year Ended December 31, 2000
Number Square Expiring
of Leases Footage Rate
Lease Activity - Expired Leases
Lease Expirations
Cash Basis 63 616,313 $ 21.57
GAAP Basis 63 616,313 $ 21.29
Renewed / Released Space
Cash Basis 40 499,180 $ 22.21
GAAP Basis 40 499,180 $ 21.92
Month-to-Month Leases
Cash Basis 11 63,100 $ 12.11
GAAP Basis 11 63,100 $ 11.71
Total Leasing
Cash Basis 51 562,280 $ 21.07
GAAP Basis 51 562,280 $ 20.77
Vacant Space Leased
Cash Basis 13 345,660 --
GAAP Basis 13 345,660 --
All Lease Activity
Cash Basis 64 907,940 --
GAAP Basis 64 907,940 --
Rental TI's/Lease Average
New Rate Commissions Lease
Rate Increase per foot Term
Lease Activity
- Expired Leases
Lease Expirations
Cash Basis -- -- -- --
GAAP Basis -- -- -- --
Renewed / Released Space
Cash Basis $ 24.44 10.0% $ 11.02 4.5 years
GAAP Basis $ 25.40 15.9% $ 11.02 4.5 years
Month-to-Month Leases
Cash Basis $ 12.41 2.5% -- --
GAAP Basis $ 12.41 6.0% -- --
Total Leasing
Cash Basis $ 23.09 9.6% -- --
GAAP Basis $ 23.94 15.3% -- --
Vacant Space Leased
Cash Basis $ 22.88 -- $ 15.10 7.6 years
GAAP Basis $ 24.75 -- $ 15.10 7.6 years
All Lease Activity
Cash Basis $ 23.01 -- -- --
GAAP Basis $ 24.25 -- -- --
ALEXANDRIA REAL ESTATE EQUITIES, INC.
Development Summary
As of December 31, 2000
Anticipated Development Projected
Market Completion Rentable Space Total
Property Area Date Square Pre-leased Cost
Feet
Development
in Process:
Alexandria
Technology
Center-at San Francisco
Oyster Bay Area 3Q01 108,000 108,000 $34.0 million
Point
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