Alexandria Real Estate Equities, Inc.
) - a real estate investment trust (REIT) - recently announced an
equity offering of 6 million shares to repay debt. The company
also decided to provide a 30-day option to the underwriters to
buy an additional 0.9 million shares, to cover any
In particular, Alexandria Real Estate expects to use proceeds
generated from this offering to lower its outstanding debt level
under its unsecured senior line of credit. This would
enable the company to borrow fund as required in future under the
unsecured senior line of credit. Alexandria Real Estate would use
such funds to finance proposed strategic initiatives such as
portfolio purchases, debt repayment and other corporate
), BofA Merrill Lynch of
Bank of America Corporation
) and J.P. Morgan of
JPMorgan Chase & Co.
) have acted as joint book-running managers for the public
This offering will enable Alexandria Real Estate to attain
financial flexibility and will position it favorably to pursue
investment opportunities and acquisitions, which will
consequently go a long way in enhancing top-line growth.
On Apr 29, 2013, Alexandria Real Estate reported first-quarter
2013 results with AFFO (Adjusted funds from operations) of $1.08
per share, missing the Zacks Consensus Estimate by 3 cents.
However, this was higher than the year-ago figure of $1.02 by 6%.
As of Mar 31, 2013, the company had cash and cash equivalents
worth $87.0 million, up from $77.4 million as of Mar 31,
Pasadena, CA-based Alexandria Real Estate is a major owner and
leading life science real estate company, focused chiefly on
science-driven cluster development through the ownership,
operation, management and selective acquisition, as well as
development and redevelopment of properties containing life
science laboratory space.
Currently, Alexandria carries a Zacks Rank #3 (Hold).
Note: FFO, a widely used metric to gauge the performance of
REITs, are obtained after adding depreciation and amortization
and other non-cash expenses to net income.
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