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Condensed consolidating financial information
9 Months Ended
Sep. 30, 2019
Condensed Consolidated Financial Information [Abstract]  
Condensed consolidating financial information
Condensed consolidating financial information

Alexandria Real Estate Equities, Inc. (the “Issuer”) has sold certain debt securities registered under the Securities Act of 1933, as amended, that are fully and unconditionally guaranteed by Alexandria Real Estate Equities, L.P. (the “LP” or the “Guarantor Subsidiary”), an indirectly 100% owned subsidiary of the Issuer. The Issuer’s other subsidiaries, including, but not limited to, the subsidiaries that own substantially all of its real estate (collectively, the “Combined Non-Guarantor Subsidiaries”), will not provide a guarantee of such securities, including the subsidiaries that are partially or 100% owned by the LP. The following condensed consolidating financial information presents the condensed consolidating balance sheets as of September 30, 2019, and December 31, 2018, the condensed consolidating statements of operations and comprehensive income for the three and nine months ended September 30, 2019 and 2018, and the condensed consolidating statements of cash flows for the nine months ended September 30, 2019 and 2018, for the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries, as well as the eliminations necessary to arrive at the information on a consolidated basis. In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) the Issuer’s interests in the Guarantor Subsidiary and the Combined Non-Guarantor Subsidiaries, (ii) the Guarantor Subsidiary’s interests in the Combined Non-Guarantor Subsidiaries, and (iii) the Combined Non-Guarantor Subsidiaries’ interests in the Guarantor Subsidiary, where applicable, even though all such subsidiaries meet the requirements to be consolidated under GAAP. All intercompany balances and transactions between the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries have been eliminated, as shown in the column “Eliminations.” All assets and liabilities have been allocated to the Issuer, the Guarantor Subsidiary, and the Combined Non-Guarantor Subsidiaries generally based on legal entity ownership.
Condensed Consolidating Balance Sheet
as of September 30, 2019
(In thousands)
(Unaudited)

 
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
$

 
$

 
$
13,618,280

 
$

 
$
13,618,280

Investments in unconsolidated real estate JVs

 

 
340,190

 

 
340,190

Cash and cash equivalents
275,498

 

 
135,177

 

 
410,675

Restricted cash
223

 

 
42,072

 

 
42,295

Tenant receivables

 

 
10,668

 

 
10,668

Deferred rent

 

 
615,817

 

 
615,817

Deferred leasing costs

 

 
252,772

 

 
252,772

Investments

 
1,123

 
989,331

 

 
990,454

Investments in and advances to affiliates
14,076,652

 
12,685,103

 
258,380

 
(27,020,135
)
 

Other assets
69,236

 

 
707,767

 

 
777,003

Total assets
$
14,421,609

 
$
12,686,226

 
$
16,970,454

 
$
(27,020,135
)
 
$
17,058,154

Liabilities, Noncontrolling Interests, and Equity
 
 
 
 
 
 
 
 
 
Secured notes payable
$

 
$

 
$
351,852

 
$

 
$
351,852

Unsecured senior notes payable
6,042,831

 

 

 

 
6,042,831

Unsecured senior line of credit
343,000

 

 

 

 
343,000

Accounts payable, accrued expenses, and other liabilities
129,971

 

 
1,111,305

 

 
1,241,276

Dividends payable
115,575

 

 

 

 
115,575

Total liabilities
6,631,377

 

 
1,463,157

 

 
8,094,534

Redeemable noncontrolling interests

 

 
12,099

 

 
12,099

Alexandria Real Estate Equities, Inc.’s stockholders’ equity
7,790,232

 
12,686,226

 
14,333,909

 
(27,020,135
)
 
7,790,232

Noncontrolling interests

 

 
1,161,289

 

 
1,161,289

Total equity
7,790,232

 
12,686,226

 
15,495,198

 
(27,020,135
)
 
8,951,521

Total liabilities, noncontrolling interests, and equity
$
14,421,609

 
$
12,686,226

 
$
16,970,454

 
$
(27,020,135
)
 
$
17,058,154


Condensed Consolidating Balance Sheet
as of December 31, 2018
(In thousands)
(Unaudited)

 
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
$

 
$

 
$
11,913,693

 
$

 
$
11,913,693

Investments in unconsolidated real estate JVs

 

 
237,507

 

 
237,507

Cash and cash equivalents
119,112

 

 
115,069

 

 
234,181

Restricted cash
193

 

 
37,756

 

 
37,949

Tenant receivables

 

 
9,798

 

 
9,798

Deferred rent

 

 
530,237

 

 
530,237

Deferred leasing costs

 

 
239,070

 

 
239,070

Investments

 
1,262

 
891,002

 

 
892,264

Investments in and advances to affiliates
12,235,577

 
10,949,631

 
222,983

 
(23,408,191
)
 

Other assets
56,353

 

 
313,904

 

 
370,257

Total assets
$
12,411,235

 
$
10,950,893

 
$
14,511,019

 
$
(23,408,191
)
 
$
14,464,956

Liabilities, Noncontrolling Interests, and Equity
 
 
 
 
 
 
 
 
 
Secured notes payable
$

 
$

 
$
630,547

 
$

 
$
630,547

Unsecured senior notes payable
4,292,293

 

 

 

 
4,292,293

Unsecured senior line of credit
208,000

 

 

 

 
208,000

Unsecured senior bank term loan
347,415

 

 

 

 
347,415

Accounts payable, accrued expenses, and other liabilities
111,282

 

 
870,425

 

 
981,707

Dividends payable
110,280

 

 

 

 
110,280

Total liabilities
5,069,270

 

 
1,500,972

 

 
6,570,242

Redeemable noncontrolling interests

 

 
10,786

 

 
10,786

Alexandria Real Estate Equities, Inc.’s stockholders’ equity
7,341,965

 
10,950,893

 
12,457,298

 
(23,408,191
)
 
7,341,965

Noncontrolling interests

 

 
541,963

 

 
541,963

Total equity
7,341,965

 
10,950,893

 
12,999,261

 
(23,408,191
)
 
7,883,928

Total liabilities, noncontrolling interests, and equity
$
12,411,235

 
$
10,950,893

 
$
14,511,019

 
$
(23,408,191
)
 
$
14,464,956


Condensed Consolidating Statement of Operations
for the Three Months Ended September 30, 2019
(In thousands)
(Unaudited)

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

 
$

 
$
385,776

 
$

 
$
385,776

Other income
6,523

 

 
4,468

 
(6,283
)
 
4,708

Total revenues
6,523

 

 
390,244

 
(6,283
)
 
390,484

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
116,450

 

 
116,450

General and administrative
27,488

 

 
6,725

 
(6,283
)
 
27,930

Interest
44,120

 

 
2,083

 

 
46,203

Depreciation and amortization
1,929

 

 
133,641

 

 
135,570

Loss on early extinguishment of debt
40,209

 

 

 

 
40,209

Total expenses
113,746

 

 
258,899

 
(6,283
)
 
366,362

 


 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated real estate JVs

 

 
2,951

 

 
2,951

Equity in earnings of affiliates
60,021

 
129,029

 
2,544

 
(191,594
)
 

Investment loss

 
(80
)
 
(62,996
)
 

 
(63,076
)
Net (loss) income
(47,202
)
 
128,949

 
73,844

 
(191,594
)
 
(36,003
)
Net income attributable to noncontrolling interests

 

 
(11,199
)
 

 
(11,199
)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
(47,202
)
 
128,949

 
62,645

 
(191,594
)
 
(47,202
)
Dividends on preferred stock
(1,173
)
 

 

 

 
(1,173
)
Net income attributable to unvested restricted stock awards
(1,398
)
 

 

 

 
(1,398
)
Net (loss) income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
(49,773
)
 
$
128,949

 
$
62,645

 
$
(191,594
)
 
$
(49,773
)


Condensed Consolidating Statement of Operations
for the Three Months Ended September 30, 2018
(In thousands)
(Unaudited)

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

 
$

 
$
336,547

 
$

 
$
336,547

Other income
5,017

 

 
5,723

 
(5,464
)
 
5,276

Total revenues
5,017

 

 
342,270

 
(5,464
)
 
341,823

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
99,759

 

 
99,759

General and administrative
21,803

 

 
6,321

 
(5,464
)
 
22,660

Interest
37,236

 

 
5,008

 

 
42,244

Depreciation and amortization
1,506

 

 
118,094

 

 
119,600

Loss on early extinguishment of debt
823

 

 
299

 

 
1,122

Total expenses
61,368

 

 
229,481

 
(5,464
)
 
285,385

 
 
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated real estate JVs

 

 
40,718

 

 
40,718

Equity in earnings of affiliates
269,987

 
147,999

 
2,912

 
(420,898
)
 

Investment income

 
111

 
122,092

 

 
122,203

Net income
213,636

 
148,110

 
278,511

 
(420,898
)
 
219,359

Net income attributable to noncontrolling interests

 

 
(5,723
)
 

 
(5,723
)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
213,636

 
148,110

 
272,788

 
(420,898
)
 
213,636

Dividends on preferred stock
(1,301
)
 

 

 

 
(1,301
)
Net income attributable to unvested restricted stock awards
(3,395
)
 

 

 

 
(3,395
)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
208,940

 
$
148,110

 
$
272,788

 
$
(420,898
)
 
$
208,940


Condensed Consolidating Statement of Operations
for the Nine Months Ended September 30, 2019
(In thousands)
(Unaudited)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Income from rentals
$

 
$

 
$
1,112,143

 
$

 
$
1,112,143

Other income
16,755

 

 
11,414

 
(17,130
)
 
11,039

Total revenues
16,755

 

 
1,123,557

 
(17,130
)
 
1,123,182

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
323,640

 

 
323,640

General and administrative
78,291

 

 
17,880

 
(17,130
)
 
79,041

Interest
120,826

 

 
7,356

 

 
128,182

Depreciation and amortization
5,344

 

 
398,750

 

 
404,094

Loss on early extinguishment of debt
40,209

 

 
7,361

 

 
47,570

Total expenses
244,670

 

 
754,987

 
(17,130
)
 
982,527

 
 
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated real estate JVs

 

 
5,359

 

 
5,359

Equity in earnings of affiliates
388,639

 
348,947

 
6,867

 
(744,453
)
 

Investment income

 
33

 
41,947

 

 
41,980

Net income
160,724

 
348,980

 
422,743

 
(744,453
)
 
187,994

Net income attributable to noncontrolling interests

 

 
(27,270
)
 

 
(27,270
)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
160,724

 
348,980

 
395,473

 
(744,453
)
 
160,724

Dividends on preferred stock
(3,204
)
 

 

 

 
(3,204
)
Preferred stock redemption charge
(2,580
)
 

 

 

 
(2,580
)
Net income attributable to unvested restricted stock awards
(4,532
)
 

 

 

 
(4,532
)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
150,408

 
$
348,980

 
$
395,473

 
$
(744,453
)
 
$
150,408

Condensed Consolidating Statement of Operations
for the Nine Months Ended September 30, 2018
(In thousands)
(Unaudited)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
Income from rentals
$

 
$

 
$
976,996

 
$

 
$
976,996

Other income
14,106

 

 
11,760

 
(15,866
)
 
10,000

Total revenues
14,106

 

 
988,756

 
(15,866
)
 
986,996

 
 
 
 
 
 
 
 
 
 
Expenses:
 
 
 
 
 
 
 
 
 
Rental operations

 

 
283,438

 

 
283,438

General and administrative
66,694

 

 
17,192

 
(15,866
)
 
68,020

Interest
100,470

 

 
16,786

 

 
117,256

Depreciation and amortization
4,830

 

 
347,841

 

 
352,671

Impairment of real estate

 

 
6,311

 

 
6,311

Loss on early extinguishment of debt
823

 

 
299

 

 
1,122

Total expenses
172,817

 

 
671,867

 
(15,866
)
 
828,818

 
 
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated real estate JVs

 

 
42,952

 

 
42,952

Equity in earnings of affiliates
562,707

 
345,676

 
6,809

 
(915,192
)
 

Investment income

 
487

 
219,807

 

 
220,294

Net income
403,996

 
346,163

 
586,457

 
(915,192
)
 
421,424

Net income attributable to noncontrolling interests

 

 
(17,428
)
 

 
(17,428
)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
403,996

 
346,163

 
569,029

 
(915,192
)
 
403,996

Dividends on preferred stock
(3,905
)
 

 

 

 
(3,905
)
Net income attributable to unvested restricted stock awards
(6,010
)
 

 

 

 
(6,010
)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders
$
394,081

 
$
346,163

 
$
569,029

 
$
(915,192
)
 
$
394,081


Condensed Consolidating Statement of Comprehensive Income
for the Three Months Ended September 30, 2019
(In thousands)
(Unaudited)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net (loss) income
$
(47,202
)
 
$
128,949

 
$
73,844

 
$
(191,594
)
 
$
(36,003
)
Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Unrealized gains on interest rate hedge agreements:
 
 
 
 
 
 
 
 
 
Unrealized interest rate hedge losses arising during the period
(79
)
 

 

 

 
(79
)
Reclassification adjustment for amortization expense to interest expense included in net (loss) income
38

 

 

 

 
38

Reclassification of swap termination losses to interest expense included in net income
1,702

 

 

 

 
1,702

Unrealized gains on interest rate hedge agreements, net
1,661

 

 

 

 
1,661

 
 
 
 
 
 
 
 
 
 
Unrealized losses on foreign currency translation:
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation losses arising during the period

 

 
(2,076
)
 

 
(2,076
)
Unrealized losses on foreign currency translation, net

 

 
(2,076
)
 

 
(2,076
)
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss)
1,661

 

 
(2,076
)
 

 
(415
)
Comprehensive (loss) income
(45,541
)
 
128,949

 
71,768

 
(191,594
)
 
(36,418
)
Less: comprehensive income attributable to noncontrolling interests

 

 
(11,199
)
 

 
(11,199
)
Comprehensive (loss) income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
$
(45,541
)
 
$
128,949

 
$
60,569

 
$
(191,594
)
 
$
(47,617
)


Condensed Consolidating Statement of Comprehensive Income
for the Three Months Ended September 30, 2018
(In thousands)
(Unaudited)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
213,636

 
$
148,110

 
$
278,511

 
$
(420,898
)
 
$
219,359

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized losses on interest rate hedge agreements:
 
 
 
 
 
 
 
 
 
Unrealized interest rate hedge gains arising during the period
165

 

 

 

 
165

Reclassification of gains to interest expense included in net income
(1,432
)
 

 

 

 
(1,432
)
Unrealized losses on interest rate hedge agreements, net
(1,267
)
 

 

 

 
(1,267
)
 
 
 
 
 
 
 
 
 
 
Unrealized losses on foreign currency translation:
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation losses arising during the period

 

 
(59
)
 

 
(59
)
Unrealized losses on foreign currency translation, net

 

 
(59
)
 

 
(59
)
 
 
 
 
 
 
 
 
 
 
Total other comprehensive loss
(1,267
)
 

 
(59
)
 

 
(1,326
)
Comprehensive income
212,369

 
148,110

 
278,452

 
(420,898
)
 
218,033

Less: comprehensive income attributable to noncontrolling interests

 

 
(5,723
)
 

 
(5,723
)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
$
212,369

 
$
148,110

 
$
272,729

 
$
(420,898
)
 
$
212,310


Condensed Consolidating Statement of Comprehensive Income
for the Nine Months Ended September 30, 2019
(In thousands)
(Unaudited)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
160,724

 
$
348,980

 
$
422,743

 
$
(744,453
)
 
$
187,994

Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
Unrealized losses on interest rate hedge agreements:
 
 
 
 
 
 
 
 
 
Unrealized interest rate hedge losses arising during the period
(1,763
)
 

 

 

 
(1,763
)
Reclassification adjustment for amortization income to interest expense included in net income
(1,777
)
 

 

 

 
(1,777
)
Reclassification of losses related to terminated interest rate hedge instruments to interest expense included in net income
1,702

 

 

 

 
1,702

Unrealized losses on interest rate hedge agreements, net
(1,838
)
 

 

 

 
(1,838
)
 
 
 
 
 
 
 
 
 
 
Unrealized gains on foreign currency translation:
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation gains arising during the period

 

 
724

 

 
724

Unrealized gains on foreign currency translation, net

 

 
724

 

 
724

 
 
 
 
 
 
 
 
 
 
Total other comprehensive (loss) income
(1,838
)
 

 
724

 

 
(1,114
)
Comprehensive income
158,886

 
348,980

 
423,467

 
(744,453
)
 
186,880

Less: comprehensive income attributable to noncontrolling interests

 

 
(27,270
)
 

 
(27,270
)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
$
158,886

 
$
348,980

 
$
396,197

 
$
(744,453
)
 
$
159,610


Condensed Consolidating Statement of Comprehensive Income
for the Nine Months Ended September 30, 2018
(In thousands)
(Unaudited)
 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
403,996

 
$
346,163

 
$
586,457

 
$
(915,192
)
 
$
421,424

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Unrealized losses on interest rate hedge agreements:
 
 
 
 
 
 
 
 
 
Unrealized interest rate hedge gains arising during the period
2,808

 

 

 

 
2,808

Reclassification of gains to interest expense included in net income
(3,241
)
 

 

 

 
(3,241
)
Unrealized losses on interest rate hedge agreements, net
(433
)
 

 

 

 
(433
)
 
 
 
 
 
 
 
 
 
 
Unrealized losses on foreign currency translation:
 
 
 
 
 
 
 
 
 
Unrealized foreign currency translation losses arising during the period

 

 
(3,631
)
 

 
(3,631
)
Unrealized losses on foreign currency translation, net

 

 
(3,631
)
 

 
(3,631
)
 
 
 
 
 
 
 
 
 
 
Total other comprehensive loss
(433
)
 

 
(3,631
)
 

 
(4,064
)
Comprehensive income
403,563

 
346,163

 
582,826

 
(915,192
)
 
417,360

Less: comprehensive income attributable to noncontrolling interests

 

 
(17,428
)
 

 
(17,428
)
Comprehensive income attributable to Alexandria Real Estate Equities, Inc.’s stockholders
$
403,563

 
$
346,163

 
$
565,398

 
$
(915,192
)
 
$
399,932


Condensed Consolidating Statement of Cash Flows
for the Nine Months Ended September 30, 2019
(In thousands)
(Unaudited)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net income
$
160,724

 
$
348,980

 
$
422,743

 
$
(744,453
)
 
$
187,994

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
5,344

 

 
398,750

 

 
404,094

Loss on early extinguishment of debt
40,209

 

 
7,361

 

 
47,570

Equity in earnings of unconsolidated real estate JVs

 

 
(5,359
)
 

 
(5,359
)
Distributions of earnings from unconsolidated real estate JVs

 

 
2,607

 

 
2,607

Amortization of loan fees
6,601

 

 
263

 

 
6,864

Amortization of debt premiums
(484
)
 

 
(2,386
)
 

 
(2,870
)
Amortization of acquired below-market leases

 

 
(20,976
)
 

 
(20,976
)
Deferred rent

 

 
(79,835
)
 

 
(79,835
)
Stock compensation expense
33,401

 

 

 

 
33,401

Equity in earnings of affiliates
(388,639
)
 
(348,947
)
 
(6,867
)
 
744,453

 

Investment income

 
(33
)
 
(41,947
)
 

 
(41,980
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 


Tenant receivables

 

 
(886
)
 

 
(886
)
Deferred leasing costs

 

 
(34,374
)
 

 
(34,374
)
Other assets
(3,989
)
 

 
(997
)
 

 
(4,986
)
Accounts payable, accrued expenses, and other liabilities
(537
)
 

 
14,839

 

 
14,302

Net cash (used in) provided by operating activities
(147,370
)
 

 
652,936

 

 
505,566

 
 
 
 
 
 
 
 
 
 
Investing Activities
 
 
 
 
 
 
 
 
 
Additions to real estate

 

 
(914,722
)
 

 
(914,722
)
Purchases of real estate

 

 
(1,289,319
)
 

 
(1,289,319
)
Deposits returned for investing activities


 

 
1,899

 

 
1,899

Investments in subsidiaries
(1,452,436
)
 
(1,386,525
)
 
(28,530
)
 
2,867,491

 

Investments in unconsolidated real estate JVs

 

 
(99,955
)
 

 
(99,955
)
Additions to investments

 

 
(133,866
)
 

 
(133,866
)
Sales of investments

 
172

 
84,921

 

 
85,093

Net cash used in investing activities
$
(1,452,436
)
 
$
(1,386,353
)
 
$
(2,379,572
)
 
$
2,867,491

 
$
(2,350,870
)





Condensed Consolidating Statement of Cash Flows (continued)
for the Nine Months Ended September 30, 2019
(In thousands)
(Unaudited)

 
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
$

 
$

 
$
(304,455
)
 
$

 
$
(304,455
)
Proceeds from issuance of unsecured senior notes payable
2,721,169

 

 

 

 
2,721,169

Repayments of unsecured senior notes payable
(950,000
)
 

 

 

 
(950,000
)
Borrowings from unsecured senior line of credit
4,068,000

 

 

 

 
4,068,000

Repayments of borrowings from unsecured senior line of credit
(3,933,000
)
 

 

 

 
(3,933,000
)
Repayments of borrowings from unsecured senior bank term loan
(350,000
)
 

 

 

 
(350,000
)
Premium paid for early extinguishment of debt
(34,677
)
 

 

 

 
(34,677
)
Transfers to/from parent company
396,001

 
1,386,353

 
1,085,137

 
(2,867,491
)
 

Payment of loan fees
(26,772
)
 

 
(7,082
)
 

 
(33,854
)
Taxes paid related to net settlement of equity awards
(25,150
)
 

 

 

 
(25,150
)
Repurchase of 7.00% Series D cumulative convertible preferred stock
(9,240
)
 

 

 

 
(9,240
)
Proceeds from issuance of common stock
235,487

 

 

 

 
235,487

Dividends on common stock
(332,458
)
 

 

 

 
(332,458
)
Dividends on preferred stock
(3,138
)
 

 

 

 
(3,138
)
Contributions from and sales of noncontrolling interests

 

 
1,015,874

 

 
1,015,874

Distributions to and purchases of noncontrolling interests

 

 
(38,882
)
 

 
(38,882
)
Net cash provided by financing activities
1,756,222

 
1,386,353

 
1,750,592

 
(2,867,491
)
 
2,025,676

 
 
 
 
 
 
 
 
 
 
Effect of foreign exchange rate changes on cash and cash equivalents

 

 
468

 

 
468

 
 
 
 
 
 
 
 
 
 
Net increase in cash, cash equivalents, and restricted cash
156,416

 

 
24,424

 

 
180,840

Cash, cash equivalents, and restricted cash as of the beginning of period
119,305

 

 
152,825

 

 
272,130

Cash, cash equivalents, and restricted cash as of the end of period
$
275,721

 
$

 
$
177,249

 
$

 
$
452,970

 
 
 
 
 
 
 
 
 
 
Supplemental Disclosures and Non-Cash Investing and Financing Activities:
 
 
 
 
 
 
 
 
 
Cash paid during the period for interest, net of interest capitalized
$
114,951

 
$

 
$
10,213

 
$

 
$
125,164

Change in accrued construction
$

 
$

 
$
12,128

 
$

 
$
12,128

Accrued construction for current-period additions to real estate
$

 
$

 
$
211,691

 
$

 
$
211,691

Assumption of secured notes payable in connection with purchase of properties
$

 
$

 
$
(28,200
)
 
$

 
$
(28,200
)
Right-of-use asset
$

 
$

 
$
267,559

 
$

 
$
267,559

Lease liability
$

 
$

 
$
(273,545
)
 
$

 
$
(273,545
)
Condensed Consolidating Statement of Cash Flows
for the Nine Months Ended September 30, 2018
(In thousands)
(Unaudited)

 
Alexandria
Real Estate
Equities, Inc.
(Issuer)
 
Alexandria
Real Estate
Equities, L.P.
(Guarantor
Subsidiary)
 
Combined
Non-Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
Net income
$
403,996

 
$
346,163

 
$
586,457

 
$
(915,192
)
 
$
421,424

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
4,830

 

 
347,841

 

 
352,671

Loss on early extinguishment of debt
823

 

 
299

 

 
1,122

Impairment of real estate

 

 
6,311

 

 
6,311

Equity in earnings of unconsolidated real estate JVs

 

 
(42,952
)
 

 
(42,952
)
Distributions of earnings from unconsolidated real estate JVs

 

 
430

 

 
430

Amortization of loan fees
6,685

 

 
1,185

 

 
7,870

Amortization of debt discounts (premiums)
587

 

 
(2,382
)
 

 
(1,795
)
Amortization of acquired below-market leases

 

 
(16,588
)
 

 
(16,588
)
Deferred rent

 

 
(75,960
)
 

 
(75,960
)
Stock compensation expense
25,209

 

 

 

 
25,209

Equity in earnings of affiliates
(562,707
)
 
(345,676
)
 
(6,809
)
 
915,192

 

Investment income

 
(487
)
 
(219,807
)
 

 
(220,294
)
Changes in operating assets and liabilities:
 
 
 
 
 
 


 


Tenant receivables

 

 
(807
)
 

 
(807
)
Deferred leasing costs

 

 
(42,821
)
 

 
(42,821
)
Other assets
(14,955
)
 

 
(6,674
)
 

 
(21,629
)
Accounts payable, accrued expenses, and other liabilities
(4,371
)
 

 
26,268

 

 
21,897

Net cash (used in) provided by operating activities
(139,903
)
 

 
553,991

 

 
414,088

 
 
 
 
 
 
 
 
 
 
Investing Activities
 
 
 
 
 
 
 
 
 
Proceeds from sales of real estate

 

 
5,748

 

 
5,748

Additions to real estate

 

 
(663,688
)
 

 
(663,688
)
Purchases of real estate

 

 
(947,013
)
 

 
(947,013
)
Deposits returned for investing activities

 

 
2,500

 

 
2,500

Investments in subsidiaries
(1,453,711
)
 
(1,234,186
)
 
(25,477
)
 
2,713,374

 

Acquisitions of interests in unconsolidated real estate JVs

 

 
(35,922
)
 

 
(35,922
)
Investments in unconsolidated real estate JVs

 

 
(77,501
)
 

 
(77,501
)
Return of capital from unconsolidated real estate joint ventures

 

 
68,592

 

 
68,592

Additions to investments

 

 
(174,195
)
 

 
(174,195
)
Sales of investments

 
420

 
56,910

 

 
57,330

Net cash used in investing activities
$
(1,453,711
)
 
$
(1,233,766
)
 
$
(1,790,046
)
 
$
2,713,374

 
$
(1,764,149
)




Condensed Consolidating Statement of Cash Flows (continued)
for the Nine Months Ended September 30, 2018
(In thousands)
(Unaudited)

 
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
$

 
$

 
$
17,784

 
$

 
$
17,784

Repayments of borrowings from secured notes payable

 

 
(155,155
)
 

 
(155,155
)
Proceeds from issuance of unsecured senior notes payable
899,321

 

 

 

 
899,321

Borrowings from unsecured senior line of credit
3,894,000

 

 

 

 
3,894,000

Repayments of borrowings from unsecured senior line of credit
(3,531,000
)
 

 

 

 
(3,531,000
)
Repayments of borrowings from unsecured senior bank term loan
(200,000
)
 

 

 

 
(200,000
)
Transfers to/from parent company
102,582

 
1,233,757

 
1,377,035

 
(2,713,374
)
 

Payment of loan fees
(19,066
)
 

 

 

 
(19,066
)
Proceeds from issuance of common stock
696,532

 

 

 

 
696,532

Dividends on common stock
(280,632
)
 

 

 

 
(280,632
)
Dividends on preferred stock
(3,905
)
 

 

 

 
(3,905
)
Contributions from noncontrolling interests

 

 
15,837

 

 
15,837

Distributions to noncontrolling interests

 

 
(25,910
)
 

 
(25,910
)
Net cash provided by financing activities
1,557,832

 
1,233,757

 
1,229,591

 
(2,713,374
)
 
1,307,806

 
 
 
 
 
 
 
 
 
 
Effect of foreign exchange rate changes on cash and cash equivalents

 

 
(1,051
)
 

 
(1,051
)
 
 
 
 
 
 
 
 
 
 
Net decrease in cash, cash equivalents, and restricted cash
(35,782
)
 
(9
)
 
(7,515
)
 

 
(43,306
)
Cash, cash equivalents, and restricted cash as of the beginning of period
130,516

 
9

 
146,661

 

 
277,186

Cash, cash equivalents, and restricted cash as of the end of period
$
94,734

 
$

 
$
139,146

 
$

 
$
233,880

 
 
 
 
 
 
 
 
 
 
Supplemental Disclosures and Non-Cash Investing and Financing Activities:
 
 
 
 
 
 
 
 
 
Cash paid during the period for interest, net of interest capitalized
$
81,888

 
$

 
$
17,750

 
$

 
$
99,638

Change in accrued construction
$

 
$

 
$
69,654

 
$

 
$
69,654

Accrued construction for current-period additions to real estate
$

 
$

 
$
225,435

 
$

 
$
225,435