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Condensed consolidating financial information (Tables)
12 Months Ended
Dec. 31, 2013
Condensed consolidating financial information  
Condensed Consolidating Balance Sheet
Consolidating Balance Sheet
as of December 31, 2013
(In thousands)
 
Alexandria Real Estate Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Investments in real estate, net
$

 
$

 
$
6,776,914

 
$

 
$
6,776,914

Cash and cash equivalents
14,790

 

 
42,906

 

 
57,696

Restricted cash
55

 

 
27,654

 

 
27,709

Tenant receivables

 

 
9,918

 

 
9,918

Deferred rent

 

 
190,425

 

 
190,425

Deferred leasing and financing costs, net
36,901

 

 
155,757

 

 
192,658

Investments

 
10,868

 
129,420

 

 
140,288

Investments in and advances to affiliates
6,299,551

 
5,823,058

 
119,421

 
(12,242,030
)
 

Other assets
20,226

 

 
113,930

 

 
134,156

Total assets
$
6,371,523

 
$
5,833,926

 
$
7,566,345

 
$
(12,242,030
)
 
$
7,529,764

Liabilities, Noncontrolling Interests, and Equity
 
 
 
 
 
 
 
 
 
Secured notes payable
$

 
$

 
$
708,831

 
$

 
$
708,831

Unsecured senior notes payable
1,048,230

 

 

 

 
1,048,230

Unsecured senior line of credit
204,000

 

 

 

 
204,000

Unsecured senior bank term loans
1,100,000

 

 

 

 
1,100,000

Accounts payable, accrued expenses, and tenant security deposits
48,373

 

 
386,969

 

 
435,342

Dividends payable
54,131

 

 
289

 

 
54,420

Total liabilities
2,454,734

 

 
1,096,089

 

 
3,550,823

Redeemable noncontrolling interests

 

 
14,444

 

 
14,444

Alexandria Real Estate Equities, Inc.’s stockholders’ equity
3,916,789

 
5,833,926

 
6,408,104

 
(12,242,030
)
 
3,916,789

Noncontrolling interests

 

 
47,708

 

 
47,708

Total equity
3,916,789

 
5,833,926

 
6,455,812

 
(12,242,030
)
 
3,964,497

Total liabilities, noncontrolling interests, and equity
$
6,371,523

 
$
5,833,926

 
$
7,566,345

 
$
(12,242,030
)
 
$
7,529,764


Condensed Consolidating Balance Sheet
as of December 31, 2012
(In thousands)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Investments in real estate, net
$
38,616

 
$

 
$
6,385,962

 
$

 
$
6,424,578

Cash and cash equivalents
98,567

 
1,914

 
40,490

 

 
140,971

Restricted cash
52

 

 
39,895

 

 
39,947

Tenant receivables
1

 

 
8,448

 

 
8,449

Deferred rent
1,876

 

 
168,520

 

 
170,396

Deferred leasing and financing costs, net
31,373

 

 
128,675

 

 
160,048

Investments

 
12,591

 
102,457

 

 
115,048

Investments in and advances to affiliates
5,833,368

 
5,358,882

 
110,101

 
(11,302,351
)
 

Intercompany note receivable
3,021

 

 

 
(3,021
)
 

Other assets
17,613

 

 
73,066

 

 
90,679

Total assets
$
6,024,487

 
$
5,373,387

 
$
7,057,614

 
$
(11,305,372
)
 
$
7,150,116

Liabilities, Noncontrolling Interests, and Equity
 
 
 
 
 
 
 
 
 
Secured notes payable
$

 
$

 
$
716,144

 
$

 
$
716,144

Unsecured senior notes payable
549,805

 

 

 

 
549,805

Unsecured senior line of credit
566,000

 

 

 

 
566,000

Unsecured senior bank term loans
1,350,000

 

 

 

 
1,350,000

Accounts payable, accrued expenses, and tenant security deposits
75,728

 

 
347,980

 

 
423,708

Dividends payable
41,103

 

 
298

 

 
41,401

Intercompany notes payable

 

 
3,021

 
(3,021
)
 

Total liabilities
2,582,636

 

 
1,067,443

 
(3,021
)
 
3,647,058

Redeemable noncontrolling interests

 

 
14,564

 

 
14,564

Alexandria Real Estate Equities, Inc.’s stockholders’ equity
3,441,851

 
5,373,387

 
5,928,964

 
(11,302,351
)
 
3,441,851

Noncontrolling interests

 

 
46,643

 

 
46,643

Total equity
3,441,851

 
5,373,387

 
5,975,607

 
(11,302,351
)
 
3,488,494

Total liabilities, noncontrolling interests, and equity
$
6,024,487

 
$
5,373,387

 
$
7,057,614

 
$
(11,305,372
)
 
$
7,150,116

Condensed Consolidating Statements of Income
Condensed Consolidating Statement of Income
for the Year Ended December 31, 2013
(In thousands)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Rental
$

 
$

 
$
467,764

 
$

 
$
467,764

Tenant recoveries

 

 
150,095

 

 
150,095

Other income
10,423

 
(74
)
 
15,912

 
(12,969
)
 
13,292

Total revenues
10,423

 
(74
)
 
633,771

 
(12,969
)
 
631,151

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
189,039

 

 
189,039

General and administrative
43,528

 

 
17,961

 
(12,969
)
 
48,520

Interest
43,284

 

 
24,668

 

 
67,952

Depreciation and amortization
5,907

 

 
183,216

 

 
189,123

Loss on early extinguishment of debt
1,992

 

 

 

 
1,992

Total expenses
94,711

 

 
414,884

 
(12,969
)
 
496,626

(Loss) income from continuing operations before equity in earnings of affiliates
(84,288
)
 
(74
)
 
218,887

 

 
134,525

Equity in earnings of affiliates
220,158

 
205,993

 
4,067

 
(430,218
)
 

Income from continuing operations
135,870

 
205,919

 
222,954

 
(430,218
)
 
134,525

Income from discontinued operations
347

 

 
553

 

 
900

Gain on sale of land parcel

 

 
4,824

 

 
4,824

Net income
136,217

 
205,919

 
228,331

 
(430,218
)
 
140,249

 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests

 

 
4,032

 

 
4,032

Dividends on preferred stock
25,885

 

 

 

 
25,885

Net income attributable to unvested restricted stock awards
1,581

 

 

 

 
1,581

Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
108,751

 
$
205,919

 
$
224,299

 
$
(430,218
)
 
$
108,751



Condensed Consolidating Statement of Income
for the Year Ended December 31, 2012
(In thousands)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Rental
$

 
$

 
$
422,793

 
$

 
$
422,793

Tenant recoveries

 

 
133,280

 

 
133,280

Other income
6,891

 
1,292

 
23,294

 
(13,053
)
 
18,424

Total revenues
6,891

 
1,292

 
579,367

 
(13,053
)
 
574,497

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
172,756

 

 
172,756

General and administrative
44,306

 
3

 
16,491

 
(13,053
)
 
47,747

Interest
46,677

 

 
22,507

 

 
69,184

Depreciation and amortization
5,384

 

 
180,303

 

 
185,687

Impairment of land parcel

 

 
2,050

 

 
2,050

Loss on early extinguishment of debt
2,225

 

 

 

 
2,225

Total expenses
98,592

 
3

 
394,107

 
(13,053
)
 
479,649

(Loss) income from continuing operations before equity in earnings of affiliates
(91,701
)
 
1,289

 
185,260

 

 
94,848

Equity in earnings of affiliates
194,566

 
183,139

 
3,638

 
(381,343
)
 

Income from continuing operations
102,865

 
184,428

 
188,898

 
(381,343
)
 
94,848

(Loss) income from discontinued operations
(739
)
 

 
9,555

 

 
8,816

Gain on sale of land parcel

 

 
1,864

 

 
1,864

Net income
102,126

 
184,428

 
200,317

 
(381,343
)
 
105,528

 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests

 

 
3,402

 

 
3,402

Dividends on preferred stock
27,328

 

 

 

 
27,328

Preferred stock redemption charge
5,978

 

 

 

 
5,978

Net income attributable to unvested restricted stock awards
1,190

 

 

 

 
1,190

Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
67,630

 
$
184,428

 
$
196,915

 
$
(381,343
)
 
$
67,630




Condensed Consolidating Statement of Income
for the Year Ended December 31, 2011
(In thousands)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Rental
$

 
$

 
$
404,815

 
$

 
$
404,815

Tenant recoveries

 

 
126,205

 

 
126,205

Other income
8,356

 
(452
)
 
10,676

 
(12,820
)
 
5,760

Total revenues
8,356

 
(452
)
 
541,696

 
(12,820
)
 
536,780

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
157,634

 

 
157,634

General and administrative
36,263

 
17

 
17,652

 
(12,820
)
 
41,112

Interest
38,582

 

 
24,791

 

 
63,373

Depreciation and amortization
3,256

 

 
147,650

 

 
150,906

Loss on early extinguishment of debt
6,485

 

 

 

 
6,485

Total expenses
84,586

 
17

 
347,727

 
(12,820
)
 
419,510

(Loss) income from continuing operations before equity in earnings of affiliates
(76,230
)
 
(469
)
 
193,969

 

 
117,270

Equity in earnings of affiliates
202,829

 
192,143

 
3,793

 
(398,765
)
 

Income from continuing operations
126,599

 
191,674

 
197,762

 
(398,765
)
 
117,270

Income from discontinued operations
4,819

 

 
13,258

 

 
18,077

Gain on sale of land parcel

 

 
46

 

 
46

Net income
131,418

 
191,674

 
211,066

 
(398,765
)
 
135,393

 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interests

 

 
3,975

 

 
3,975

Dividends on preferred stock
28,357

 

 

 

 
28,357

Net income attributable to unvested restricted stock awards
1,088

 

 

 

 
1,088

Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
101,973

 
$
191,674

 
$
207,091

 
$
(398,765
)
 
$
101,973

Condensed Consolidating Statement Comprehensive Income
Condensed Consolidating Statement of Comprehensive Income
for the Year Ended December 31, 2013
(In thousands)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
136,217

 
$
205,919

 
$
228,331

 
$
(430,218
)
 
$
140,249

Other comprehensive income:
 
 
 
 
 
 
 
 
 
Unrealized (losses) gains on marketable securities:
 
 
 
 
 
 
 
 
 
Unrealized holding (losses) gains arising during the period

 
(438
)
 
1,738

 

 
1,300

Reclassification adjustment for losses (gains) included in net income

 
148

 
(1,331
)
 

 
(1,183
)
Unrealized (losses) gains on marketable securities

 
(290
)
 
407

 

 
117

 
 
 
 
 
 
 
 
 
 
Unrealized gains on interest rate swaps:
 
 
 
 
 
 
 
 
 
Unrealized interest rate swap gains arising during the period
1,918

 

 

 

 
1,918

Reclassification adjustment for amortization of interest expense included in net income
15,422

 

 

 

 
15,422

Unrealized gains on interest rate swaps
17,340

 

 

 

 
17,340

 
 
 
 
 
 
 
 
 
 
Foreign currency translation losses

 

 
(28,912
)
 

 
(28,912
)
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss)
17,340

 
(290
)
 
(28,505
)
 

 
(11,455
)
Comprehensive income
153,557

 
205,629

 
199,826

 
(430,218
)
 
128,794

Less: comprehensive income attributable to noncontrolling interests

 

 
(3,948
)
 

 
(3,948
)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
153,557

 
$
205,629

 
$
195,878

 
$
(430,218
)
 
$
124,846



Condensed Consolidating Statement of Comprehensive Income
for the Year Ended December 31, 2012
(In thousands)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
102,126

 
$
184,428

 
$
200,317

 
$
(381,343
)
 
$
105,528

Other comprehensive income:
 
 
 
 
 
 
 
 
 
Unrealized (losses) gains on marketable securities:
 
 
 
 
 
 
 
 
 
Unrealized holding (losses) gains arising during the period

 
(319
)
 
1,309

 

 
990

Reclassification adjustment for losses (gains) included in net income

 
155

 
(3,506
)
 

 
(3,351
)
Unrealized losses on marketable securities

 
(164
)
 
(2,197
)
 

 
(2,361
)
 
 
 
 
 
 
 
 
 
 
Unrealized gains on interest rate swaps:
 
 
 
 
 
 
 
 
 
Unrealized interest rate swap losses arising during the period
(9,990
)
 

 

 

 
(9,990
)
Reclassification adjustment for amortization of interest expense included in net income
22,309

 

 

 

 
22,309

Unrealized gains on interest rate swaps
12,319

 

 

 

 
12,319

 
 
 
 
 
 
 
 
 
 
Foreign currency translation losses

 

 
(318
)
 

 
(318
)
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss)
12,319

 
(164
)
 
(2,515
)
 

 
9,640

Comprehensive income
114,445

 
184,264

 
197,802

 
(381,343
)
 
115,168

Less: comprehensive income attributable to noncontrolling interests

 

 
(3,364
)
 

 
(3,364
)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
114,445

 
$
184,264

 
$
194,438

 
$
(381,343
)
 
$
111,804




Condensed Consolidating Statement of Comprehensive Income
for the Year Ended December 31, 2011
(In thousands)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
131,418

 
$
191,674

 
$
211,066

 
$
(398,765
)
 
$
135,393

Other comprehensive income:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) on marketable securities:
 
 
 
 
 
 
 
 
 
Unrealized holding gains arising during the period

 
148

 
90

 

 
238

Reclassification adjustment for losses (gains) included in net income

 
28

 
(2,589
)
 

 
(2,561
)
Unrealized gains (losses) on marketable securities

 
176

 
(2,499
)
 

 
(2,323
)
 
 
 
 
 
 
 
 
 
 
Unrealized gains on interest rate swaps:
 
 
 
 
 
 
 
 
 
Unrealized interest rate swap losses arising during the period
(9,630
)
 

 

 

 
(9,630
)
Reclassification adjustment for amortization of interest expense included in net income
21,457

 

 

 

 
21,457

Unrealized gains on interest rate swaps
11,827

 

 

 

 
11,827

 
 
 
 
 
 
 
 
 
 
Foreign currency translation losses

 

 
(25,605
)
 

 
(25,605
)
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss)
11,827

 
176

 
(28,104
)
 

 
(16,101
)
Comprehensive income
143,245

 
191,850

 
182,962

 
(398,765
)
 
119,292

Less: comprehensive income attributable to noncontrolling interests

 

 
(4,050
)
 

 
(4,050
)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
143,245

 
$
191,850

 
$
178,912

 
$
(398,765
)
 
$
115,242

Condensed Consolidating Statement Cash Flows
Condensed Consolidating Statement of Cash Flows
for the Year Ended December 31, 2013
(In thousands)
 
Alexandria Real
Estate Equities,
Inc. (Issuer)
 
Alexandria Real
Estate Equities,
L.P. (Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net income
$
136,217

 
$
205,919

 
$
228,331

 
$
(430,218
)
 
$
140,249

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,907

 

 
184,871

 

 
190,778

Loss on early extinguishment of debt
1,992

 

 

 

 
1,992

Gain on sale of land parcel

 

 
(4,824
)
 

 
(4,824
)
Loss on sale of real estate

 

 
121

 

 
121

Amortization of loan fees and costs
6,914

 

 
3,022

 

 
9,936

Amortization of debt premiums/discounts
111

 

 
418

 

 
529

Amortization of acquired below market leases

 

 
(3,316
)
 

 
(3,316
)
Deferred rent
(82
)
 

 
(27,853
)
 

 
(27,935
)
Stock compensation expense
15,552

 

 

 

 
15,552

Equity in (income) loss related to subsidiaries
(220,158
)
 
(205,993
)
 
(4,067
)
 
430,218

 

Investment gains

 
(3
)
 
(7,047
)
 

 
(7,050
)
Investment losses

 
78

 
1,402

 

 
1,480

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Restricted cash
(2
)
 

 
901

 

 
899

Tenant receivables

 

 
(1,519
)
 

 
(1,519
)
Deferred leasing costs
(37
)
 

 
(54,788
)
 

 
(54,825
)
Other assets
(5,606
)
 

 
(692
)
 

 
(6,298
)
Intercompany receivables and payables
3,021

 

 
(3,021
)
 

 

Accounts payable, accrued expenses, and tenant security deposits
(13,485
)
 

 
70,443

 

 
56,958

Net cash (used in) provided by operating activities
(69,656
)
 
1

 
382,382

 

 
312,727

 
 
 
 
 
 
 
 
 
 
Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of properties
10,796

 

 
143,172

 

 
153,968

Additions to properties

 

 
(593,389
)
 

 
(593,389
)
Purchase of properties

 

 
(122,069
)
 

 
(122,069
)
Change in restricted cash related to construction projects

 

 
7,655

 

 
7,655

Contributions to unconsolidated real estate entity

 

 
(17,987
)
 

 
(17,987
)
Investments in subsidiaries
(236,218
)
 
(276,022
)
 
(13,445
)
 
525,685

 

Additions to investments

 

 
(36,078
)
 

 
(36,078
)
Proceeds from sales of investments

 
1,018

 
15,507

 

 
16,525

Net cash (used in) provided by investing activities
$
(225,422
)
 
$
(275,004
)
 
$
(616,634
)
 
$
525,685

 
$
(591,375
)







Condensed Consolidating Statement of Cash Flows (continued)
for the Year Ended December 31, 2013
(In thousands)
 
Alexandria Real
Estate Equities,
Inc. (Issuer)
 
Alexandria Real
Estate Equities,
L.P. (Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Financing Activities
 
 
 
 
 
 
 
 
 
Borrowings from secured notes payable
$

 
$

 
$
28,489

 
$

 
$
28,489

Repayments of borrowings from secured notes payable

 

 
(36,219
)
 

 
(36,219
)
Proceeds from issuance of senior notes payable
498,561

 

 

 

 
498,561

Principal borrowings from unsecured senior line of credit
729,000

 

 

 

 
729,000

Repayments of borrowings from unsecured senior line of credit
(1,091,000
)
 

 

 

 
(1,091,000
)
Repayments of unsecured senior bank term loans
(250,000
)
 

 

 

 
(250,000
)
Repurchase of unsecured senior convertible notes
(384
)
 

 

 

 
(384
)
Transfer to/from parent company

 
273,089

 
252,596

 
(525,685
)
 

Change in restricted cash related to financings
(1
)
 

 
2,547

 

 
2,546

Deferred financing costs paid
(14,383
)
 

 
(5,545
)
 

 
(19,928
)
Proceeds from common stock offerings
534,469

 

 

 

 
534,469

Dividends paid on common stock
(169,076
)
 

 

 

 
(169,076
)
Dividends paid on preferred stock
(25,885
)
 

 

 

 
(25,885
)
Distributions to redeemable noncontrolling interests

 

 
(1,191
)
 

 
(1,191
)
Distributions to noncontrolling interests

 

 
(1,812
)
 

 
(1,812
)
Net cash provided by (used in) financing activities
211,301

 
273,089

 
238,865

 
(525,685
)
 
197,570

 
 
 
 
 
 
 
 
 
 
Effect of foreign exchange rate changes on cash and cash equivalents

 

 
(2,197
)
 

 
(2,197
)
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(83,777
)
 
(1,914
)
 
2,416

 

 
(83,275
)
Cash and cash equivalents at beginning of period
98,567

 
1,914

 
40,490

 

 
140,971

Cash and cash equivalents at end of period
$
14,790

 
$

 
$
42,906

 
$

 
$
57,696

 
 
 
 
 
 
 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
 
 
 
 
Cash paid during the period for interest, net of interest capitalized
$
37,073

 
$

 
$
22,784

 
$

 
$
59,857

 
 
 
 
 
 
 
 
 
 
Non-Cash Investing Activities
 
 
 
 
 
 
 
 
 
Note receivable from sale of real estate
$
29,820

 
$

 
$
9,000

 
$

 
$
38,820

Change in accrued capital expenditures
$

 
$

 
$
(21,310
)
 
$

 
$
(21,310
)



Condensed Consolidating Statement of Cash Flows
for the Year Ended December 31, 2012
(In thousands)
 
Alexandria Real
Estate Equities,
Inc. (Issuer)
 
Alexandria Real
Estate Equities,
L.P. (Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net income
$
102,126

 
$
184,428

 
$
200,317

 
$
(381,343
)
 
$
105,528

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
6,490

 

 
185,515

 

 
192,005

Loss on early extinguishment of debt
2,225

 

 

 

 
2,225

Gain on sale of land parcel

 

 
(1,864
)
 

 
(1,864
)
Gain on sale of real estate

 

 
(1,564
)
 

 
(1,564
)
Impairment of real estate
6,400

 

 
5,000

 

 
11,400

Impairment of land parcel

 

 
2,050

 

 
2,050

Amortization of loan fees and costs
9,204

 

 
628

 

 
9,832

Amortization of debt premiums/discounts
114

 

 
397

 

 
511

Amortization of acquired above and below market leases

 

 
(3,200
)
 

 
(3,200
)
Deferred rent
(224
)
 

 
(28,232
)
 

 
(28,456
)
Stock compensation expense
14,160

 

 

 

 
14,160

Equity in (income) loss related to subsidiaries
(194,566
)
 
(183,139
)
 
(3,638
)
 
381,343

 

Investment gains

 
(1,510
)
 
(13,508
)
 

 
(15,018
)
Investment losses

 
221

 
2,416

 

 
2,637

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Restricted cash
(12
)
 

 
(249
)
 

 
(261
)
Tenant receivables
11

 

 
(992
)
 

 
(981
)
Deferred leasing costs
(305
)
 

 
(44,794
)
 

 
(45,099
)
Other assets
1,329

 

 
(5,398
)
 

 
(4,069
)
Intercompany receivables and payables
(826
)
 

 
826

 

 

Accounts payable, accrued expenses, and tenant security deposits
6,172

 

 
59,525

 

 
65,697

Net cash (used in) provided by operating activities
(47,702
)
 

 
353,235

 

 
305,533

 
 
 
 
 
 
 
 
 
 
Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of properties

 

 
36,179

 

 
36,179

Additions to properties
(1,313
)
 

 
(547,717
)
 

 
(549,030
)
Purchase of properties

 

 
(42,171
)
 

 
(42,171
)
Change in restricted cash related to construction projects

 

 
(9,377
)
 

 
(9,377
)
Distribution from unconsolidated real estate entity

 

 
22,250

 

 
22,250

Contributions to unconsolidated real estate entity

 

 
(6,700
)
 

 
(6,700
)
Investments in subsidiaries
(197,665
)
 
(158,022
)
 
(1,179
)
 
356,866

 

Additions to investments

 
(353
)
 
(35,941
)
 

 
(36,294
)
Proceeds from sales of investments

 
2,600

 
24,443

 

 
27,043

Net cash (used in) provided by investing activities
$
(198,978
)
 
$
(155,775
)
 
$
(560,213
)
 
$
356,866

 
$
(558,100
)




Condensed Consolidating Statement of Cash Flows (continued)
for the Year Ended December 31, 2012
(In thousands)
 
Alexandria Real
Estate Equities,
Inc. (Issuer)
 
Alexandria Real
Estate Equities,
L.P. (Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Financing Activities
 
 
 
 
 
 
 
 
 
Borrowings from secured notes payable
$

 
$

 
$
17,810

 
$

 
$
17,810

Repayments of borrowings from secured notes payable

 

 
(26,367
)
 

 
(26,367
)
Proceeds from issuance of unsecured senior notes payable
544,650

 

 

 

 
544,650

Principal borrowings from unsecured senior line of credit
847,147

 

 

 

 
847,147

Repayments of borrowings from unsecured senior line of credit
(651,147
)
 

 

 

 
(651,147
)
Repayment of unsecured senior bank term loan
(250,000
)
 

 

 

 
(250,000
)
Repurchase of unsecured senior convertible notes
(84,801
)
 

 

 

 
(84,801
)
Redemption of Series C Cumulative Redeemable Preferred Stock
(129,638
)
 

 

 

 
(129,638
)
Proceeds from issuance of Series E Cumulative Redeemable Preferred Stock
124,868

 

 

 

 
124,868

Transfer to/from parent company

 
157,689

 
199,177

 
(356,866
)
 

Change in restricted cash related to financings

 

 
(7,428
)
 

 
(7,428
)
Deferred financing costs paid
(10,180
)
 

 
(3,045
)
 

 
(13,225
)
Proceeds from common stock offering
97,890

 

 

 

 
97,890

Proceeds from exercise of stock options
155

 

 

 

 
155

Dividends paid on common stock
(126,498
)
 

 

 

 
(126,498
)
Dividends paid on preferred stock
(27,819
)
 

 

 

 
(27,819
)
Distributions to redeemable noncontrolling interests

 

 
(1,249
)
 

 
(1,249
)
Redemption of redeemable noncontrolling interests
12

 

 
(462
)
 

 
(450
)
Contributions by noncontrolling interests

 

 
1,875

 

 
1,875

Distributions to noncontrolling interests

 

 
(913
)
 

 
(913
)
Net cash provided by (used in) financing activities
334,639

 
157,689

 
179,398

 
(356,866
)
 
314,860

 
 
 
 
 
 
 
 
 
 
Effect of foreign exchange rate changes on cash and cash equivalents

 

 
139

 

 
139

 
 
 
 
 
 
 
 
 
 
Net increase (decrease) in cash and cash equivalents
87,959

 
1,914

 
(27,441
)
 

 
62,432

Cash and cash equivalents at beginning of period
10,608

 

 
67,931

 

 
78,539

Cash and cash equivalents at end of period
$
98,567

 
$
1,914

 
$
40,490

 
$

 
$
140,971

 
 
 
 
 
 
 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
 
 
 
 
Cash paid during the period for interest, net of interest capitalized
$
39,298

 
$

 
$
13,263

 
$

 
$
52,561

 
 
 
 
 
 
 
 
 
 
Non-Cash Investing Activities
 
 
 
 
 
 
 
 
 
Note receivable from sale of real estate
$

 
$

 
$
6,125

 
$

 
$
6,125

Write-off of fully amortized improvements
$

 
$

 
$
(17,730
)
 
$

 
$
(17,730
)
Change in accrued capital expenditures
$
(2,000
)
 
$

 
$
48,087

 
$

 
$
46,087





Condensed Consolidating Statement of Cash Flows
for the Year Ended December 31, 2011
(In thousands)

 
Alexandria Real
Estate Equities,
Inc. (Issuer)
 
Alexandria Real
Estate Equities,
L.P. (Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net income
$
131,418

 
$
191,674

 
$
211,066

 
$
(398,765
)
 
$
135,393

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4,938

 

 
153,088

 

 
158,026

Loss on early extinguishment of debt
6,485

 

 

 

 
6,485

Gain on sale of land parcel

 

 
(46
)
 

 
(46
)
Impairment of real estate

 

 
994

 

 
994

Amortization of loan fees and costs
6,915

 

 
2,385

 

 
9,300

Amortization of debt premiums/discounts
3,534

 

 
285

 

 
3,819

Amortization of acquired above and below market leases

 

 
(9,332
)
 

 
(9,332
)
Deferred rent
100

 

 
(26,897
)
 

 
(26,797
)
Stock compensation expense
11,755

 

 

 

 
11,755

Equity in (income) loss related to subsidiaries
(202,829
)
 
(192,143
)
 
(3,793
)
 
398,765

 

Investment gains

 
(427
)
 
(4,419
)
 

 
(4,846
)
Investment losses

 
883

 
912

 

 
1,795

Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Restricted cash
4

 

 
(469
)
 

 
(465
)
Tenant receivables
(12
)
 

 
(2,347
)
 

 
(2,359
)
Deferred leasing costs
(699
)
 

 
(55,527
)
 

 
(56,226
)
Other assets
2,550

 

 
(24,909
)
 

 
(22,359
)
Intercompany receivables and payables
(1,418
)
 

 
1,418

 

 

Accounts payable, accrued expenses, and tenant security deposits
6,274

 

 
35,549

 

 
41,823

Net cash (used in) provided by operating activities
(30,985
)
 
(13
)
 
277,958

 

 
246,960

 
 
 
 
 
 
 
 
 
 
Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sale of properties

 

 
20,078

 

 
20,078

Additions to properties
(1,624
)
 

 
(428,414
)
 

 
(430,038
)
Purchase of properties

 

 
(305,030
)
 

 
(305,030
)
Change in restricted cash related to construction projects

 

 
(2,183
)
 

 
(2,183
)
Contributions to unconsolidated real estate entity

 

 
(5,256
)
 

 
(5,256
)
Investments in subsidiaries
(548,884
)
 
(477,482
)
 
(11,951
)
 
1,038,317

 

Additions to investments

 
(2,451
)
 
(25,548
)
 

 
(27,999
)
Proceeds from sales of investments

 
3,471

 
13,378

 

 
16,849

Net cash (used in) provided by investing activities
$
(550,508
)
 
$
(476,462
)
 
$
(744,926
)
 
$
1,038,317

 
$
(733,579
)

Condensed Consolidating Statement of Cash Flows (continued)
for the Year Ended December 31, 2011
(In thousands)

 
Alexandria Real
Estate Equities,
Inc. (Issuer)
 
Alexandria Real
Estate Equities,
L.P. (Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Financing Activities
 
 
 
 
 
 
 
 
 
Repayments of borrowings from secured notes payable
$

 
$

 
$
(66,849
)
 
$

 
$
(66,849
)
Principal borrowings from unsecured senior line of credit
1,406,000

 

 

 

 
1,406,000

Repayments of borrowings from unsecured senior line of credit
(1,784,000
)
 

 

 

 
(1,784,000
)
Principal borrowings from unsecured senior bank term loan
1,350,000

 

 

 

 
1,350,000

Repayment of unsecured senior bank term loan
(500,000
)
 

 

 

 
(500,000
)
Repurchase of unsecured senior convertible notes
(221,439
)
 

 

 

 
(221,439
)
Transfer to/from parent company

 
475,873

 
562,444

 
(1,038,317
)
 

Change in restricted cash related to financings

 

 
7,311

 

 
7,311

Deferred financing costs paid
(25,493
)
 

 
(1,823
)
 

 
(27,316
)
Proceeds from common stock offering
451,539

 

 

 

 
451,539

Proceeds from exercise of stock options
2,117

 

 

 

 
2,117

Dividends paid on common stock
(106,889
)
 

 

 

 
(106,889
)
Dividends paid on preferred stock
(28,357
)
 

 

 

 
(28,357
)
Contributions by redeemable noncontrolling interests

 

 
9

 

 
9

Distributions to redeemable noncontrolling interests

 

 
(1,263
)
 

 
(1,263
)
Contributions by noncontrolling interests

 

 
1,000

 

 
1,000

Distributions to noncontrolling interests

 

 
(2,707
)
 

 
(2,707
)
Net cash provided by (used in) financing activities
543,478

 
475,873

 
498,122

 
(1,038,317
)
 
479,156

 
 
 
 
 
 
 
 
 
 
Effect of foreign exchange rate changes on cash and cash equivalents

 

 
(5,230
)
 

 
(5,230
)
 
 
 
 
 
 
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(38,015
)
 
(602
)
 
25,924

 

 
(12,693
)
Cash and cash equivalents at beginning of period
48,623

 
602

 
42,007

 

 
91,232

Cash and cash equivalents at end of period
$
10,608

 
$

 
$
67,931

 
$

 
$
78,539

 
 
 
 
 
 
 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
 
 
 
 
 
 
Cash paid during the period for interest, net of interest capitalized
$
30,292

 
$

 
$
22,032

 
$

 
$
52,324

Changes in accrued capital expenditures
$
(987
)
 
$

 
$
4,479

 
$

 
$
3,492