Alexandria Real Estate Equities, Inc.
) recently announced that it has priced a public offering of $550
million principal amount of 4.60% senior notes due 2022. The sale
of the notes is scheduled on February 29, 2012.
The notes will be unsecured obligations of the company and fully
guaranteed by Alexandria Real Estate Equities, L.P., a wholly owned
subsidiary of the company.
The company intends to use the net proceeds from this offering
to repay the outstanding balance of $250 million of its unsecured
term loan under its unsecured credit facility and to reduce the
outstanding balance of its borrowings on its unsecured line of
The company also intends to borrow in intervals under its
unsecured line of credit to fund accretive acquisitions, to repay
debt, for general working capital and other corporate purposes,
including the selective development or redevelopment of existing or
new life science properties.This offering will enable the company
to attain financial flexibility and seize investment opportunities
and acquisitions, which go a long way in enhancing top-line
Alexandria Real Estate reported fourth quarter 2011 FFO (funds
from operations) of $67.8 million or $1.10 per share compared with
$60.8 million or $1.07 per share in the year-earlier quarter. Funds
from operations, a widely used metric to gauge the performance of
REITs, is obtained after adding depreciation and amortization and
other non-cash expenses to net income.
Alexandria Real Estate is the largest owner and leading life
science real estate company, focused principally on science-driven
cluster development through the ownership, operation, management,
and selective acquisition, development, and redevelopment of
properties containing life science laboratory space.
Alexandria Real Estate currently retains its Zacks #4 Rank,
which translates into a short-term Sell rating. We are also
maintaining our long-term Neutral recommendation on the stock. One
of its competitors,
Liberty property Trust
), has a Zacks #3 Rank, which translates into a short-term
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