Alexandria Real Estate Equities, Inc. · NYSE:ARE
Alexandria Real Estate Equities — Q3 2015 Earnings Presentation
115 slides from Alexandria Real Estate Equities's earnings presentation, Nov 2, 2015
Slide 1: Earnings Press Release and Supplemental Information Q3 2015
ALEXANDRIA REAL ESTATE EQUITIES, INC. EARNINGS PRESS RELEASE AND SUPPLEMENTAL INFORMATION NYSE:ARE ALEXANDRIA THIRD QUARTER ENDED SEPTEMBER 30, 2015 S “= Ba : : - Va a a Cambridge Mission’Bay/SoMa San Diego > and Technology Campuses in Urban Innovation Clus N.ARE.COM
Slide 2: Contact Information
CONTACT INFORMATION: GE ALEXANDRIA lent & Chief Finan , Inc. ALEXANDRIA CENTER® AT KENDALL SQUARE, 50 BINNEY STREET, CAMBRIDGE, GREATER BOSTON
Slide 3: Best-in-Class, Unique Urban Office REIT
GD ALEXANDRIA. BEST-IN-CLASS, UNIQUE URBAN OFFICE REIT Collaborative science and technology campuses in AAA urban innovation cluster locations nestor Cg D> ‘201 bat a m\ sa Estate ton, xGOEDy.. ativara wins Class A assets yo Internal growth drivers Favorable NNN lease structure with annual rent esca
Slide 4: Table of Contents
Table of Contents Page EARNINGS PRESS RELEASE Third Quarter Ended September 30, 2015, Financial and Operating Results Guidance Dispositions and Other Sources of Capital for 2015 Key NAV Consideration Earnings Call Information and About the Company Consolidated Statements of Income Consolidated Balan
Slide 5: Reports Third Quarter Ended September 30, 2015 Financial and Operating Results
Alexandria Real Estate Equities, Inc. Reports Third Quarter Ended September 30, 2015 Financial and Operating Results Sales of Partial Interests in Core Assets at 4.5% and 4.8% Cash Cap Rates to High-Quality Institutional Investor FFO Per Share, as Adjusted – Basic and Diluted, of $1.33 for 3Q15 , up
Slide 6: Third Quarter Financial and Operating Results
nting 100% of phase one of the recently acquired near-term development project at 505 Brannan Street in our SoMa submarket in San Francisco • 78,916 RSF renewal with UMass Memorial Realty, In Third Quarter Financial and Operating Results Core operating metrics (continued) • Occupancy for operating p
Slide 7: Guidance
(Dollars in thousands, except per share amounts) The following updated guidance is based on our current view of existing market conditions and other assumptions for the year ending December 31, 2015. There can be no assurance that actual amounts will be materially higher or lower than these expectat
Slide 8: Dispositions and Other Sources of Capital for 2015
(Dollars in thousands) Property – Market/Submarket Number of Operating Properties Square Feet Interest Sold/Subject to Sale NOI (1) Cash NOI (1) Cash Capitalization Rate Actual/Estimated Sales Price Completed YTD 3Q15 661 University Avenue – Canada/Toronto N/A 100% $ (1,363 ) $ (135 ) N/A $ 54,104 2
Slide 9: Key NAV Consideration
Key NAV Consideration
Slide 10: Key NAV Consideration for Recently Completed Development
KEY NAV CONSIDERATION FOR _ INCREMENTAL NAV FOR RECENTLY COMPLETED DEVELOPMENT _ CASH NOI VALUATION MODELS AT 75/125 BINNEY STREET, CAMBRIDGE, MA Delivered 99% leased on March 24, 2015 and cash rents commenced immediately; $30 million annual rent consisted of 80% straight-line rent and 20% cash rent
Slide 11: Earnings Call Information and About the Company
Earnings Call Information and About the Company We will host a conference call on Tuesday , November 3, 2015 , at 3:00 p.m. Eastern Time (“ET”)/ noon Pacific Time (“PT”) that is open to the general public to discuss our financial and operating results for the third quarter ended September 30, 2015 .
Slide 12: Consolidated Statements of Income
(In thousands, except per share amounts) Three Months Ended Nine Months Ended 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14 9/30/15 9/30/14 Revenues: Rental $ 155,311 $ 151,805 $ 143,608 $ 140,873 $ 137,718 $ 450,724 $ 403,280 Tenant recoveries 56,119 49,594 48,394 45,282 45,572 154,107 128,198 Other inc
Slide 13: Consolidated Balance Sheets
(In thousands) 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14 Assets Investments in real estate $ 7,654,209 $ 7,442,875 $ 7,388,059 $ 7,226,016 $ 7,197,630 Cash and cash equivalents 76,383 68,617 90,641 86,011 67,023 Restricted cash 36,993 44,191 56,704 26,884 24,245 Tenant receivables 10,124 9,279 10,627
Slide 14: Funds From Operations and Adjusted Funds From Operations
(In thousands) The following table presents a reconciliation of net income (loss) attributable to Alexandria’s common stockholders – basic, the most directly comparable financial measure presented in accordance with generally accepted accounting principles (“GAAP”), to FFO attributable to Alexandria
Slide 15: FFO Per Share Reconciliation
(In thousands, except per share amounts) The following table presents a reconciliation of earnings per share attributable to Alexandria’s common stockholders – basic, the most directly comparable financial measure presented in accordance with GAAP, to FFO per share attributable to Alexandria’s commo
Slide 16: Company Profile
Company Profile Alexandria Real Estate Equities, Inc. (NYSE:ARE) is the largest and leading urban office REIT uniquely focused on collaborative science and technology campuses in AAA innovation cluster locations with a total market capitalization of $10.8 billion as of September 30, 2015 , and an as
Slide 17: High-Quality and Innovative Tenants
High-Quality and Innovative Tenants High-Quality Cash Flows from Innovative Client Tenants with 53% of Total ABR from Investment-Grade Client Tenants High-Quality Client Tenant Base Diverse Client Tenant Base
Slide 18: Tenant Mix by Type
Life Science Product, Service, and Device Institutional 3% (Academic/Medical, Zan Non-Profit, and Investment U.S. Government) Grade Multinational Pharmaceutical & Public Biotechnolo 71% cal Office and Tech Office 3% Private Biotechnology
Slide 19: (By ABR)
(By ABR) (By ABR) (1) Traditional Office and Tech space comprises of 2.2% and 0.8% of ABR, respectively.
Slide 20: Class A Assets in AAA Locations
Class A Assets in AAA Locations High-Quality Cash Flows from Class A Assets in AAA Locations Focus in Key Locations
Slide 21: Class A Assets in AAA Locations
Class A Assets in AAA locations 75% of ARE’s Total ABR % of ARE’s Total ABR
Slide 22: Solid Occupancy
Solid Occupancy Demand for Class A Assets in AAA Locations Drives Solid Occupancy Occupancy Across Key Locations as of September 30, 2015
Slide 23: Solid Occupancy
Solid Occupancy (1) 95% Over 10 Years (1) Average occupancy of operating properties in North America as of December 31 for the last 10 years.
Slide 24: NAV, FFO, and Common Stock Dividends Per Share
NAV, FFO, and Common Stock Dividends Per Share Growth in NAV Per Share (1) Growth in FFO Per Share (2) Growth in Quarterly Common Stock Dividends Per Share
Slide 25: NAV Per Share Growth
NS G $99.75 $74.00 January 3, 2014 October 1, 2015
Slide 26: FFO Per Share Growth
role $5.25 $4.40 2013 2015 Projected
Slide 27: Footnotes
(1) Based upon Real Estate Securities Monthly by Green Street Advisors Inc. (2) 2015 projected, as adjusted, excludes investment income of $5.4 million , or $0.08 per share, primarily attributable to gross investment gains of $8.7 million from the sale of two publicly traded securities.
Slide 28: Investor Information
Investor Information Corporate Headquarters Trading Symbols Information Requests 385 East Colorado Boulevard, Suite 299 New York Stock Exchange Phone: (626) 396-4828 Pasadena, California 91101 Common stock: ARE E-mail: corporateinformation@are.com Series E preferred stock: ARE PRE Web: www.are.com C
Slide 29: Financial Highlights
(Dollars in thousands, except for share amounts) Three Months Ended (unless stated otherwise) 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14 Operating data Total revenues $ 218,610 $ 204,156 $ 196,753 $ 188,674 $ 185,615 Operating margins 69% 70% 69% 70% 69% Adjusted EBITDA margins 65% 65% 64% 65% 64% Adj
Slide 30: Asset Base Highlights
(Dollars in thousands, except per occupied RSF amounts) Three Months Ended (unless stated otherwise) 9/30/15 6/30/15 3/31/15 12/31/14 9/30/14 Asset base statistics – at end of period Number of properties (including unconsolidated joint ventures) Rentable square feet (operating properties and develop
Slide 31: Key Operating Metrics
Key Operating Metrics Favorable Lease Structure Same Property NOI Increase
Slide 32: Favorable Lease Structure
Percentage of triple net leases 96% Stable cash flows Percentage of leases containing annual rent escalations 95% Increasing cash flows Percentage of leases providing for the recapture of capital expenditures 94% Lower capex burden Adjusted EBITDA Margin (1) Rental Rate Increases: Renewed/Re-leased
Slide 33: Same Property Performance
65% (1) Represents the three months ended September 30, 2015 , annualized. Same Property Performance
Slide 34: Same Property Performance
(Dollars in thousands) Same Property Financial Data 3Q15 YTD 3Q15 Same Property Statistical Data 3Q15 YTD 3Q15 Percentage change over comparable period from prior year: Number of same properties NOI increase 1.1% 1.2% Rentable square feet 14,410,625 13,917,359 NOI increase (cash basis) 4.8% 5.6% Occ
Slide 35: Same Property Performance (continued)
Same Property Performance (continued) The charts below provide two alternative calculations of same property performance in comparison to our historical same property performance. Our reported same property performance is based upon a pool of operating assets and development and redevelopment projec
Slide 36: Same Property NOI Change
Percentage change in same property NOI over preceding period (cash basis)
Slide 37: NOI Included in All Comparative Periods
NOI Included in All Comparative Periods Operating Properties Recently Placed into Service Properties Under Construction Legend — Same Property Developments Redevelopments Development Redevelopment
Slide 38: Same Property Reconciliation
As reported Yes Yes (1) Yes (1) No No Operating portfolio Yes No No No No Including redevelopments Yes No Yes No Yes (1) Development and redevelopment projects recently placed into service are included in the same property data for each of the year-over-year comparison periods only if the property w
Slide 39: Leasing Activity
Leasing Activity Three Months Ended Nine Months Ended Year Ended December 31, 2014 (Dollars are per RSF) Including Straight-line Rent Cash Basis Including Straight-line Rent Cash Basis Including Straight-line Rent Cash Basis Leasing activity: Renewed/re-leased space (1) Rental rate changes 17.5% 8.8
Slide 40: Lease Expirations
Lease Expirations Year of Lease Expiration Number of Leases Expiring RSF of Expiring Leases Percentage of Aggregate Total RSF ABR of Expiring Leases (per RSF) (1) 232,526 (1) 1.4 % $ 37.03 1,321,642 7.9 % $ 31.79 1,386,364 8.3 % $ 27.89 1,838,064 10.9 % $ 38.73 1,401,460 8.3 % $ 35.98 1,556,981 9.3
Slide 41: Top 20 Client Tenants
(Dollars in thousands) Remaining Lease Term in Years (1) Aggregate RSF ABR Percentage of Aggregate ABR Investment-Grade Ratings Client Tenant Fitch Moody’s S&P Novartis AG 2.2 693,480 $ 33,524 5.4 % AA Aa3 AA- ARIAD Pharmaceuticals, Inc. 14.5 386,111 (2) 29,994 4.8 — — — Illumina, Inc. 14.4 595,886
Slide 42: Summary of Properties and Occupancy
Summary of Properties and Occupancy Summary of properties RSF Number of Properties ABR (Dollars in thousands) ABR Market Operating Development Redevelopment Total % Total per RSF (1) Greater Boston 4,534,155 1,115,637 59,000 5,708,792 % $ 218,520 % $ 50.38 San Francisco 2,630,791 722,980 — 3,353,771
Slide 43: Property Listing
(Dollars in thousands) RSF Number of Properties Occupancy Percentage ABR Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Greater Boston Cambridge/Inner Suburbs Alexandria Center ® at Kendall Square 1,361,734 961,960 59,000 2,382,694 $ 74,4
Slide 44: Property Listing: San Francisco
(Dollars in thousands) RSF Number of Properties Occupancy Percentage ABR Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Francisco Mission Bay 409/499 Illinois Street 455,069 — — 455,069 $ 26,958 100.0 % 100.0 % 455 Mission Bay Bouleva
Slide 45: Property Listing: San Diego
(Dollars in thousands) RSF Number of Properties Occupancy Percentage ABR Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total San Diego Torrey Pines ARE Nautilus 241,191 — — 241,191 $ 7,877 90.3 % 90.3 % 3530/3550 John Hopkins Court and 3535/35
Slide 46: Property Listing: Seattle
(Dollars in thousands) RSF Number of Properties Occupancy Percentage ABR Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Seattle Lake Union 1201/1208 Eastlake Avenue East 203,369 — — 203,369 $ 8,748 100.0 % 100.0 % 1616 Eastlake Avenue Eas
Slide 47: Property Listing: Research Triangle Park
(Dollars in thousands) RSF Number of Properties Occupancy Percentage ABR Operating Operating and Redevelopment Market / Submarket / Address Operating Development Redevelopment Total Research Triangle Park Research Triangle Park Alexandria Technology Center ® – Alston 186,870 — — 186,870 $ 3,417 99.5
Slide 48: Key Real Estate Metrics
Key Real Estate Metrics 2015 Disciplined Allocation of Capital (1) 13% of Gross Investments in Real Estate in Value-Creation Pipeline
Slide 49: Value-Creation Pipeline by Submarket
Torrey Pines/ UTC Mission Bay/ SoMa Cambridge Sy 18% Manhattan Other Submarkets
Slide 50: Highly Leased Development and Redevelopment Projects
Highly Leased Development and Redevelopment Projects Pre-Leased (3) Percentage of Ground-Up Developments Since January 1, 2009 80% Single-Tenant 100% Pre-leased 2.3M RSF Multi-Tenant 38% Pre-leased 2.5M RSF Leased (1) Includes actual and projected construction and acquisitions for the year ending De
Slide 51: LEED Sustainability
LEED Sustainability Focused on Excellence, Sustainability and Operational Efficiency 56% ABR From LEED ® LEED ® Projects (1) Projects (1)
Slide 52: Investments in Real Estate
(1) Upon completion of 20 in-process LEED certification projects Investments in Real Estate
Slide 53: Investments in Real Estate
(Dollars in thousands, except per square foot amounts) Investments in Real Estate Consolidated ARE Share of Unconsolidated Joint Ventures Total Square Feet Unconsolidated Joint Ventures Per SF (1) Page Amount % Consolidated Total Rental properties $ 7,691,115 $ 69,685 $ 7,760,800 % 16,543,907 259,85
Slide 54: Overview of Value-Creation Pipeline
Overview of Value-Creation Pipeline Visible Growth Pipeline: Highly Leased Projects to Be Placed into Service by 4Q16 1.5M 89% $75M – $80M RSF Leased Incremental Annual NOI (1) ARE’s Ownership Interest Total Project Property Market/Submarket CIP Square Feet Square Feet Leased Negotiating Leased/Nego
Slide 55: Overview of Value-Creation Pipeline (continued)
Overview of Value-Creation Pipeline (continued) Visible Growth Pipeline: Highly Leased Projects to Be Placed into Service in 2017 and 2018 1.8M 71% $105M to $110M RSF Leased Incremental Annual NOI (1) ARE’s Ownership Interest Total Project Forecast Year of NOI Contribution Property – Market/Submarke
Slide 56: 510 Townsend Street — San Francisco/SoMa
510 Townsend Street — San Francisco/SoMa % 300,000 —
Slide 57: Binney Street — Greater Boston/Cambridge
100 Binney Street — Greater Boston/Cambridge % 431,483
Slide 58: 9625 Towne Centre Drive
9625 Towne Centre Drive — San Diego/University Town Center % 162,156 — — —
Slide 59: 11 Hurley Street
11 Hurley Street — Greater Boston/Cambridge % 59,000 —
Slide 60: Near-term development projects: Brannan Street
1,240,445 % % % Near-term development projects 505 Brannan Street — San Francisco/SoMa % 150,000 —
Slide 61: Development projects under construction
1,390,445 % % % Development projects under construction 1455/1515 Third Street — San Francisco/Mission Bay % 422,980 —
Slide 62: Near-term development projects
1,813,425 % % % Near-term development projects 5200 Illumina Way — San Diego/University Town Center % 386,044 — — —
Slide 63: 10300 Campus Point Drive
10300 Campus Point Drive, Building 2 — San Diego/University Town Center % 292,387 — — —
Slide 64: East 29th Street — New York City/Manhattan
East 29th Street — New York City/Manhattan % 420,000 — — —
Slide 65: Total/weighted-average
Total/weighted-average 2,911,856 % % %
Slide 66: Projects Placed into Service in 3Q15
(Dollars in thousands) Unlevered Placed into Service in 3Q15 RSF In Service % of Project In Service Total Project Average Cash Yield Initial Stabilized Yield (Cash Basis) Initial Stabilized Yield Property – Market/Submarket Date RSF Prior to 3Q15 Total Leased/ Negotiating Investment Consolidated dev
Slide 67: Development Projects under Construction
(Dollars in thousands) Leased Status Project Start Date Initial Occupancy Date Stabilized Occupancy Date Project RSF Leased Negotiating Total Leased/Negotiating Property – Market/Submarket In Service CIP Total RSF % RSF % RSF % Consolidated development projects 430 East 29th Street – New York City/M
Slide 68: Unconsolidated Joint Venture Development Projects
(Dollars in thousands) Leased Status Project Start Date Initial Occupancy Date Stabilized Occupancy Date Project RSF Leased Negotiating Total Leased/Negotiating Property – Market/Submarket In Service CIP Total RSF % RSF % RSF % Unconsolidated joint venture development projects 360 Longwood Avenue –
Slide 69: Redevelopment Projects under Construction
(Dollars in thousands) Leased Status Project Start Date Initial Occupancy Date Stabilized Occupancy Date Project RSF Leased Negotiating Total Leased/Negotiating Property – Market/Submarket In Service CIP Total RSF % RSF % RSF % Consolidated redevelopment projects 10290 Campus Point Drive – San Diego
Slide 70: Development Projects under Construction: Binney Street
Development Projects under Construction 50 Binney Street
Slide 71: Binney Street
60 Binney Street
Slide 72: Binney Street
100 Binney Street
Slide 73: Greater Boston/Cambridge Projects
Greater Boston/Cambridge Greater Boston/Cambridge Greater Boston/Cambridge 274,734 RSF 255,743 RSF 431,483 RSF Genzyme Corporation/Sanofi bluebird bio, Inc. Bristol-Myers Squibb Company 510 Townsend Street
Slide 74: East 29th Street
430 East 29th Street
Slide 75: 5200 Illumina Way, Building 6
5200 Illumina Way, Building 6
Slide 76: SoMa, Manhattan and University Town Center Projects
San Francisco/ SoMa New York City/Manhattan San Diego/ University Town Center 300,000 RSF 67,912 RSF (1) 295,609 RSF Stripe, Inc. Roche/New York University/Others Illumina, Inc. 3013/3033 Science Park Road
Slide 77: Dexter Avenue North
400 Dexter Avenue North
Slide 78: 6040 George Watts Hill Drive
6040 George Watts Hill Drive
Slide 79: Torrey Pines, Lake Union and RTP Projects
San Diego/ Torrey Pines Seattle/ Lake Union Research Triangle Park/RTP 63,000 RSF (1) 287,806 RSF 61,547 RSF Celgene Corporation/ The Medicines Company Juno Therapeutics, Inc. Fujifilm Diosynth Biotechnologies U.S.A., Inc. (1) Represents portion of total project under construction. See page 38 for p
Slide 80: Development and Redevelopment Projects under Construction
Development and Redevelopment Projects under Construction Development Projects under Construction - Unconsolidated Joint Ventures 360 Longwood Avenue
Slide 81: 1455/1515 Third Street
1455/1515 Third Street
Slide 82: Longwood and Mission Bay Joint Ventures
Greater Boston/Longwood Medical Area San Francisco/ Mission Bay 153,677 RSF 422,980 RSF 27.5% Ownership Interest 51% Ownership Interest Dana-Farber Cancer Institute, Inc./The Children’s Hospital Corporation Uber Technologies, Inc. Redevelopment Projects under Construction 11 Hurley Street
Slide 83: 10290 Campus Point Drive
10290 Campus Point Drive
Slide 84: 9625 Towne Centre Drive
9625 Towne Centre Drive
Slide 85: Redevelopment Projects and Near-Term Development Projects
Greater Boston/Cambridge San Diego/ University Town Center San Diego/ University Town Center 59,000 RSF 304,326 RSF 162,156 RSF Under Negotiation Eli Lilly and Company Marketing Near-Term and Future Value-Creation Development Projects in North America
Slide 86: Near-Term and Future Value-Creation Development Projects
(Dollars in thousands, except per square foot amounts) Square Feet Property – Market/Submarket Page Book Value Value-Creation Project Embedded Land (1) Total Cost Per Square Foot Near-Term Value-Creation Development Projects – Land undergoing predevelopment activities (CIP) 505 Brannan Street, Phase
Slide 87: Brannan Street
505 Brannan Street San Francisco Operating/Development Project Near-Term/Future Value-Creation Project San Francisco/SoMa
Slide 88: Brannan Street Background
Background Alexandria’s acquisition of 505 Brannan Street in April 2015, represents an expansion of our successful Mission Bay science and technology campus into the SoMa submarket. The site is ideally located within close proximity to public transportation. Furthermore, with its highly strategic lo
Slide 89: Alexandria Center for Life Science – North Land Parcel
Alexandria Center ® for Life Science – North Land Parcel New York City Operating/Development Project Near-Term Value-Creation Project New York City/Manhattan
Slide 90: North Land Parcel Background
Background Alexandria was selected by the City of New York to transform a riverfront parcel into the Alexandria Center ® for Life Science, New York City’s first and only world-class life science cluster campus. In 2010, we placed the ground-up development of the East Tower consisting of 309,035 RSF
Slide 91: 5200 Illumina Way
5200 Illumina Way San Diego Operating/Development Project Near-Term Value-Creation Project San Diego/University Town Center
Slide 92: 5200 Illumina Way Background
Background Alexandria owns and operates the headquarters campus of Illumina, Inc., a leading developer, manufacturer, and marketer of life science tools and integrated systems for large-scale analysis of genetic variation and function with a market capitalization of $31.5 billion as of June 30, 2015
Slide 93: Alexandria Center for Life Science at Campus Pointe
Alexandria Center ® for Life Science at Campus Pointe San Diego Operating/Development/Redevelopment Project Near-Term Value-Creation Project San Diego/University Town Center
Slide 94: Campus Pointe Background
Background The Alexandria Center ® for Life Science at Campus Pointe is Alexandria’s flagship multi-tenant office/laboratory campus in the University Town Center submarket of San Diego, consisting of our recently acquired 304,326 RSF redevelopment project at 10290 Campus Point Drive and our aggregat
Slide 95: 4796 Executive Drive at ARE Esplanade
4796 Executive Drive at ARE Esplanade San Diego Operating Near-Term Value-Creation Project San Diego/University Town Center
Slide 96: ARE Esplanade Background
Background Alexandria’s Esplanade campus features three single-tenant operating properties located at 4755, 4757, and 4767 Nexus Center Drive, aggregating 180,208 RSF of office/laboratory space in the University Town Center submarket of San Diego. Near-Term Opportunity Ground-up development of a bui
Slide 97: Unconsolidated Joint Ventures
(Dollars in thousands) As of September 30, 2015 360 Longwood Avenue 1455/1515 Third Street Total ARE Share (1) 100% ARE’s 27.5% Share (1) 100% ARE’s 51% Share (1) Rental properties $ 194,617 $ 58,898 $ 21,150 $ 10,787 $ 69,685 Construction in progress 115,486 35,004 114,118 61,708 96,712 Gross inves
Slide 98: Capital Allocation
(Dollars in thousands) Capital Allocation Projected Construction and Acquisition Spending in 2015
Slide 99: Projected Construction Spending
Projected Construction Spending Three Months Ending December 31, 2015 Development and redevelopment projects under construction: Development (consolidated) $ 120,000 Development (unconsolidated joint venture) 4,000 Redevelopment 11,000 Developments/redevelopments recently transferred to rental prope
Slide 100: Actual Construction Spending
(Dollars in thousands, except per square foot amounts) Actual Construction Spending Nine Months Ended September 30, 2015 Development $ 229,990 Redevelopment 32,833 Predevelopment 27,602 Generic laboratory infrastructure/building improvement projects (1) 60,110 Asia 7,816 Total construction spending
Slide 101: Acquisitions
(Dollars in thousands) Gross Purchase Price Unlevered Property – Market/Submarket Date Acquired Number of Properties Loan Assumption Percentage Average Cash Yield Initial Stabilized Yield (Cash) Initial Stabilized Yield Type RSF Leased Negotiating 640 Memorial Drive – Greater Boston/Cambridge Operat
Slide 102: Investments in Real Estate in Asia
(Dollars in thousands) Number of Properties ABR Occupancy Percentage Book Value (1) Square Feet Rental properties in China $ 1,217 53.6 % $ 78,652 634,328 Rental properties in India 5,670 66.0 69,167 565,386 Rental properties in Asia $ 6,887 59.4 % 147,819 1,199,714 Land held for future development
Slide 103: Key Credit Metrics
Key Credit Metrics Net Debt to Adjusted EBITDA (1) Unencumbered NOI (2)
Slide 104: Fixed-Charge Coverage Ratio and Liquidity
79% Fixed-Charge Coverage Ratio (1) Liquidity (in millions)
Slide 105: Net Debt to Adjusted EBITDA Target Range
3.3x 4Q14 3.5x 3Q15 Target Range
Slide 106: Credit Metrics Footnotes
(1) Quarter annualized. (2) For the three months ended September 30, 2015 . (3) Represents pro forma liquidity as of September 30, 2015 , aggregating $1.2 billion, including a secured construction loan with aggregate commitments available for borrowing of $350.0 million that we closed in October 201
Slide 107: Summary of Debt
Summary of Debt Debt maturities chart (Dollars in millions)
Slide 108: Fixed-Rate and Variable-Rate Debt
(1) In October 2015, we repaid a $76 million secured note payable with an effective interest rate of 5.73% . Fixed-rate/hedged and unhedged variable-rate debt (Dollars in thousands) Fixed-Rate/Hedged Variable-Rate Unhedged Variable-Rate Total Consolidated Percentage of Total Debt Weighted-Average In
Slide 109: Debt Maturities and Principal Payments
(Dollars in thousands) Stated Rate Weighted-Average Interest Rate (1) Maturity Date (2) Principal Payments Remaining for the Periods Ending December 31, Debt Thereafter Total Secured notes payable Greater Boston, San Francisco, and San Diego 5.73 % 5.73 % (3 ) $ $ 75,501 $ — $ — $ — $ — $ 75,967 Gre
Slide 110: Secured Construction Loans
(Dollars in thousands) Secured construction loans Property – Market/Submarket Stated Rate Maturity Date Outstanding Balance Remaining Commitments Total Commitments 269 East Grand Avenue – San Francisco/South San Francisco L+1.40% 6/1/16 (1) $ 20,714 $ 15,286 $ 36,000 259 East Grand Avenue – San Fran
Slide 111: Definitions and Reconciliations
Definitions and Reconciliations This section contains additional information for sections throughout this supplemental information package as well as explanations of certain non-GAAP financial measures and the reasons why we use these supplemental measures of performance. Our computation of non-GAAP
Slide 112: Definitions and Reconciliations (continued)
Definitions and Reconciliations (continued) Adjusted funds from operations AFFO is a non-GAAP financial measure that we use as a supplemental measure of our performance. AFFO excludes certain items that are not representative of our operating results because such items are dependent upon historical
Slide 113: Definitions and Reconciliations (continued)
Definitions and Reconciliations (continued) Fixed-charge coverage ratio The fixed-charge coverage ratio is a supplemental measure of our ability to satisfy fixed financing obligations and preferred stock dividends. The following table presents a reconciliation of interest expense, the most directly
Slide 114: Definitions and Reconciliations (continued)
Definitions and Reconciliations (continued) NOI The following table reconciles income from continuing operations to total NOI from continuing operations: Three Months Ended Nine Months Ended (In thousands) 9/30/15 9/30/14 9/30/15 9/30/14 Income from continuing operations $ 39,699 $ 36,115 $ 103,180
Slide 115: Definitions and Reconciliations (continued)
Definitions and Reconciliations (continued) Unencumbered NOI as a percentage of total NOI from continuing operations Unencumbered NOI as a percentage of total NOI from continuing operations is a non-GAAP financial measure that we believe is useful to investors as a performance measure of the results
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