Form 8-K ALEXANDRIA REAL ESTATE For: Dec 01
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E-mailUNITED 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): December 3, 2014
ALEXANDRIA REAL ESTATE EQUITIES, INC.
(Exact name of registrant as specified in its charter)
Maryland | 1-12993 | 95-4502084 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
385 East Colorado Boulevard, Suite 299 | ||
Pasadena, California | 91101 | |
(Address of principal executive offices) | (Zip Code) | |
Registrants telephone number, including area code: (626) 578-0777
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4 (c)) |
Item 7.01.� Regulation FD.
Alexandria Real Estate Equities, Inc. (the Company ) issued its 2015 guidance on December 3, 2014. A copy of the 2015 guidance is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information contained in this Current Report on Form 8-K, including the exhibit referenced herein, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act ), or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) | Exhibits. |
99.1 | 2015 guidance issued by Alexandria Real Estate Equities, Inc. on December 3, 2014. |
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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.
ALEXANDRIA REAL ESTATE EQUITIES, INC. | ||
December 3, 2014 | By: | /s/ Dean A. Shigenaga |
Dean A. Shigenaga | ||
Chief Financial Officer | ||
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EXHIBIT 99.1
ALEXANDRIA REAL ESTATE EQUITIES, INC.
2015 Guidance
Based on our current view of existing market conditions and other assumptions, we are issuing guidance for earnings per share attributable to Alexandrias common stockholders diluted, and FFO per share attributable to Alexandrias common stockholders diluted, each for the year ended December 31, 2015.� The table below provides a reconciliation of FFO per share, a non-GAAP measure, to earnings per share, the most directly comparable GAAP measure, as well as other key assumptions included in our guidance for the year ended December 31, 2015.
EPS and FFO Per Share Attributable to Alexandrias Common Stockholders Diluted | 2015 Guidance | |
Earnings per share | $1.60 $1.80 | |
Add back: depreciation and amortization | 3.52 | |
Other | (0.02) | |
FFO per share | $5.10 $5.30 | |
Key Assumptions (Dollars in thousands) | Low | High | ||||||
Occupancy percentage for operating properties in North America at December�31, 2015 | 96.9% | 97.4% | ||||||
Same property performance: | ||||||||
NOI increase | 0.5% | 2.5% | ||||||
NOI increase (cash basis) | 5.0% | 7.0% | ||||||
Lease renewals and re-leasing of space: | ||||||||
Rental rate increases | 14.0% | 17.0% | ||||||
Rental rate increases (cash basis) | 8.0% | 10.0% | ||||||
Straight-line rents | $ | 42,000 | $ | 47,000 | ||||
General and administrative expenses | $ | 55,000 | $ | 59,000 | ||||
Capitalization of interest | $ | 35,000 | $ | 45,000 | ||||
Interest expense | $ | 110,000 | $ | 120,000 | ||||
�
Key Credit Metrics | 2015 Guidance | |
Net debt to Adjusted EBITDA quarterly annualized | 6.5x to 7.5x | |
Fixed charge coverage ratio quarterly annualized | 3.0x to 3.5x | |
Non-income-producing assets as a percentage of gross real estate | 10% to 15% | |
Sources and Uses of Capital (Dollars in thousands) | Low | High | ||||||
Sources of capital: | ||||||||
Net cash provided by operating activities after dividends | $ | 115,000 | $ | 135,000 | ||||
Incremental debt | 390,000 | 470,000 | ||||||
Asset sales (1) | 240,000 | 340,000 | ||||||
Total sources of capital | $ | 745,000 | $ | 945,000 | ||||
Uses of capital: | ||||||||
Construction | $ | 645,000 | $ | 745,000 | ||||
Acquisitions | 100,000 | 200,000 | ||||||
Total uses of capital | $ | 745,000 | $ | 945,000 | ||||
Incremental debt: | ||||||||
Issuance of unsecured senior and other notes payable | $ | 535,000 | $ | 685,000 | ||||
Borrowings under: | ||||||||
Existing secured construction loans | 80,000 | 130,000 | ||||||
Repayments of: | ||||||||
Secured notes payable | (61,000 | ) | (137,000 | ) | ||||
2016 unsecured senior term loan | (150,000 | ) | (200,000 | ) | ||||
Unsecured senior line of credit | (14,000 | ) | (8,000 | ) | ||||
Incremental debt | $ | 390,000 | $ | 470,000 | ||||
(1) | Represents the amount of remaining capital at the midpoint of our guidance. We expect to satisfy our remaining capital through the sale of core-like, non-core, and land asset dispositions. The proceeds from these asset sales may vary depending on the impact of the sales on our net debt to adjusted EBITDA ratio. For example, the sale of non-income-producing land benefits leverage more than the sale of an income-producing property. |
The key assumptions behind the sources and uses of capital in the table above are a favorable capital market environment and performance of our core operations in areas such as delivery of current and future development and redevelopment projects, leasing activity, and renewals.� Our expected sources and uses of capital are subject to a number of variables and uncertainties, including those discussed under the Forward-looking statements section under Part I and the Risk Factors section under Item 1A of our annual report on Form 10-K for the year ended December 31, 2013, and in subsequent quarterly reports on Form 10-Q.� We expect to update our forecast of sources and uses of capital on a quarterly basis.
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