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Alexandria Real Estate sees 6.8% YOY rise in Q4'16 FFO as adjusted per share

Alexandria Real Estate Equities Inc. reported a 6.8% year-over-year gain in funds from operations per share, as adjusted, for the fourth quarter of 2016.

Fourth-quarter 2016 FFO attributable to common shareholders, as adjusted, rose to about $115.5 million, or $1.42 per share, from about $95.8 million, or $1.33 per share, in the 2015 fourth quarter. For the full year 2016, FFO attributable to common shareholders totaled roughly $421.3 million, or $5.51 per share, compared to about $375.8 million, or $5.25 per share, in 2015, representing a 5.0% per-share increase year over year.

FFO attributable to common shareholders for the fourth quarter came to about $67.9 million, or 84 cents per share, compared to some $103.5 million, or $1.44 per share, in the year-ago quarter. For the full year 2016, FFO attributable to common shareholders hit roughly $250.0 million, or $3.27 per share, compared to about $388.6 million, or $5.43 per share, in 2015.

The S&P Capital IQ consensus FFO-per-share estimates for the fourth quarter and full year 2016 were $1.42 and $5.52, respectively, while the consensus FFO as adjusted-per-share estimates for the fourth quarter and full year 2016 were $1.14 and $4.52, respectively.

Looking ahead, the company issued its FFO guidance for 2017 in the range of $5.90 to $6.10 per share.

The S&P Capital IQ consensus FFO-per-share estimate for 2017 is $6.02.

The company said it recorded total revenues of $249.2 million during the 2016 fourth quarter, up 11.3% from $224.0 million in the 2015 quarter. For the full year, total revenues hit $921.7 million, 9.3% higher than the $843.5 million recorded a year earlier.

In January, the company acquired land parcels totaling 2.6 acres at 88 Bluxome St. in the Mission Bay/SoMa submarket of San Francisco for $130.0 million and is in the process of obtaining entitlements for the development of the site, with an expected 1,070,925 rentable square feet to be available for the construction of two buildings in separate phases.

It also signed lease extensions with Novartis AG for 302,626 rentable square feet at 100 and 200 Technology Square in the Cambridge submarket of greater Boston.

During the fourth quarter, the company sold its remaining operating properties and land parcels in India for roughly $53.4 million.

Also during the quarter, the company repurchased 3.0 million shares of its 7.00% series D cumulative convertible preferred stock at $36.12 apiece, or $108.2 million in the aggregate, with a recognized preferred stock redemption charge of $35.7 million. In the same period, it sold 3.4 million common shares at $105.73 apiece under its at-the-market offering program for gross proceeds of $354.2 million.

In December 2016, it sold 7.5 million common shares to settle its forward equity sales agreements signed in July of that year, generating $715.9 million in net proceeds, which were used in part to fund its purchase of the One Kendall Square property in East Cambridge, Mass.

In November 2016, the company bought the remaining 49% stake in its real estate joint venture with Uber Technologies Inc. for $90.1 million. The venture owned land parcels at 1455 and 1515 Third St. and a parking garage structure in the Mission Bay/SoMa submarket of San Francisco.

In October 2016, it acquired the 294,993-rentable-square-foot, three-building Torrey Ridge Science Center collaborative life science campus in San Diego for $182.5 million.