Alexandria Real Estate Equities Inc. (ARE, Financial) filed Annual Report for the period ended 2010-12-31.
Alexandria Re Equities has a market cap of $4.44 billion; its shares were traded at around $80.2 with a P/E ratio of 18.3 and P/S ratio of 9.1. The dividend yield of Alexandria Re Equities stocks is 2.2%. Alexandria Re Equities had an annual average earning growth of 6.7% over the past 10 years. GuruFocus rated Alexandria Re Equities the business predictability rank of 4-star.Hedge Fund Gurus that owns ARE: Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns ARE: Ken Heebner of Capital Growth Management LP, Ron Baron of Baron Funds, Chris Davis of Davis Selected Advisers, Pioneer Investments, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC.
In September 2010, we purchased a life science property with approximately 48,500 rentable square feet in the Suburban Washington, D.C. market. The total purchase price was approximately $12.5 million and consisted of approximately $6.2 million in cash and our assumption of a secured loan of approximately $6.3 million. This property is fully leased to a credit life science entity.
The Third Amendment amended the Existing Credit Agreement to, among other things, increase the maximum permitted borrowings under the credit facilities from $1.9 billion to $2.25 billion, consisting of a $1.5 billion unsecured line of credit (increased from $1.15 billion) and a $750 million unsecured term loan (together the Unsecured Credit Facility) and provide an accordion option to increase commitments under the Unsecured Credit Facility by up to an additional $300 million. Borrowings under the Unsecured Credit Facility bear interest at LIBOR or the specified base rate, plus in either case a margin specified in the Amended Credit Agreement (the Applicable Margin). The Applicable Margin for LIBOR borrowings under the revolving credit facility was initially set at 2.4%. The Applicable Margin for the LIBOR borrowings under the unsecured term loan was not amended in the Third Amendment and was 1.0% as of December 31, 2010.
In June 2010, we completed an exchange (the Exchange Offer) of approximately $232.7 million of our 8.00% unsecured senior convertible notes (8.00% Unsecured Convertible Notes) for consideration of 24.1546 shares of our common stock, a cash premium of $180 per $1,000 principal amount of the notes, plus accrued and unpaid interest. In July 2010, we repurchased, in a privately negotiated transaction, approximately $7.1 million of our 8.00% Unsecured Convertible Notes for an aggregate cash price of approximately $12.8 million. Thus, in the Exchange Offer and this privately negotiated transaction, we retired $239.8 million of our 8.00% Unsecured Convertible Notes (representing substantially all $240 million outstanding principal amount of our 8.00% Unsecured Convertible Notes). In connection with the retirement of our 8% Unsecured Convertible Notes, we recognized losses on early extinguishment of debt of approximately $42.8 million for the year ended December 31, 2010
In December 2010, we repurchased, in privately negotiated transactions, approximately $82.8 million of our 3.70% unsecured convertible notes (3.70% Unsecured Convertible Notes) at an aggregate cash price of approximately $84.6 million. As a result of the repurchases, we recognized a loss on early extinguishment of debt of approximately $2.4 million during the fourth quarter of 2010.
During the year ended December 31, 2010, we repaid eight secured loans aggregating approximately $118.5 million and, in connection with three 2010 acquisitions, assumed three secured loans aggregating approximately $21.1 million.
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Alexandria Re Equities has a market cap of $4.44 billion; its shares were traded at around $80.2 with a P/E ratio of 18.3 and P/S ratio of 9.1. The dividend yield of Alexandria Re Equities stocks is 2.2%. Alexandria Re Equities had an annual average earning growth of 6.7% over the past 10 years. GuruFocus rated Alexandria Re Equities the business predictability rank of 4-star.Hedge Fund Gurus that owns ARE: Manning & Napier Advisors, Inc. Mutual Fund and Other Gurus that owns ARE: Ken Heebner of Capital Growth Management LP, Ron Baron of Baron Funds, Chris Davis of Davis Selected Advisers, Pioneer Investments, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:
In August 2010, we entered into definitive agreements to acquire three life science properties and other selected assets and interests of privately-held Veralliance Properties, Inc. (Veralliance), including continuing services from Veralliance Founder and President, Daniel Ryan and other key management and operational personnel. Veralliance was a San Diego-based corporate real estate solutions company focused on the acquisition, development, and management of office and life science assets in Southern California. The three life science properties, located in San Diego, California, contain an aggregate of 161,000 rentable square feet and were acquired for an aggregate purchase price of approximately $50.0 million consisting of approximately $35.2 million in cash and our assumption of two secured loans aggregating approximately $14.8 million. We completed the acquisition of one of these properties in the third quarter of 2010 and completed the acquisitions of the other two properties in the fourth quarter of 2010.In September 2010, we purchased a life science property with approximately 48,500 rentable square feet in the Suburban Washington, D.C. market. The total purchase price was approximately $12.5 million and consisted of approximately $6.2 million in cash and our assumption of a secured loan of approximately $6.3 million. This property is fully leased to a credit life science entity.
The Third Amendment amended the Existing Credit Agreement to, among other things, increase the maximum permitted borrowings under the credit facilities from $1.9 billion to $2.25 billion, consisting of a $1.5 billion unsecured line of credit (increased from $1.15 billion) and a $750 million unsecured term loan (together the Unsecured Credit Facility) and provide an accordion option to increase commitments under the Unsecured Credit Facility by up to an additional $300 million. Borrowings under the Unsecured Credit Facility bear interest at LIBOR or the specified base rate, plus in either case a margin specified in the Amended Credit Agreement (the Applicable Margin). The Applicable Margin for LIBOR borrowings under the revolving credit facility was initially set at 2.4%. The Applicable Margin for the LIBOR borrowings under the unsecured term loan was not amended in the Third Amendment and was 1.0% as of December 31, 2010.
In June 2010, we completed an exchange (the Exchange Offer) of approximately $232.7 million of our 8.00% unsecured senior convertible notes (8.00% Unsecured Convertible Notes) for consideration of 24.1546 shares of our common stock, a cash premium of $180 per $1,000 principal amount of the notes, plus accrued and unpaid interest. In July 2010, we repurchased, in a privately negotiated transaction, approximately $7.1 million of our 8.00% Unsecured Convertible Notes for an aggregate cash price of approximately $12.8 million. Thus, in the Exchange Offer and this privately negotiated transaction, we retired $239.8 million of our 8.00% Unsecured Convertible Notes (representing substantially all $240 million outstanding principal amount of our 8.00% Unsecured Convertible Notes). In connection with the retirement of our 8% Unsecured Convertible Notes, we recognized losses on early extinguishment of debt of approximately $42.8 million for the year ended December 31, 2010
In December 2010, we repurchased, in privately negotiated transactions, approximately $82.8 million of our 3.70% unsecured convertible notes (3.70% Unsecured Convertible Notes) at an aggregate cash price of approximately $84.6 million. As a result of the repurchases, we recognized a loss on early extinguishment of debt of approximately $2.4 million during the fourth quarter of 2010.
During the year ended December 31, 2010, we repaid eight secured loans aggregating approximately $118.5 million and, in connection with three 2010 acquisitions, assumed three secured loans aggregating approximately $21.1 million.
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