Alexandria Real Estate Equities reports low leverage, high liquidity

By Devika Patel

Knoxville, Tenn., April 24 – Alexandria Real Estate Equities, Inc. reported a 5.2x net debt to adjusted EBITDA leverage ratio at the end of the last quarter, along with high liquidity of $6 billion, giving the company a strong balance sheet relative to its peers, management said Tuesday.

“We continue to have one of the strongest balance sheets amongst all publicly traded U.S. REITs,” treasurer and chief financial officer Marc E. Binda said on the company’s first quarter ended March 31 earnings conference call on Tuesday.

“Our corporate credit ratings rank in the top 10% of all publicly traded U.S. REITs.

“Our leverage continues to remain low at 5.2x for net debt to adjusted EBITDA on a quarterly annualized basis.

“We have tremendous liquidity of $6 billion, [with] fixed rate debt comprising 98.9% of our total debt and a weighted average remaining debt term of 13.4 years.

“In addition, nearly a third of our total debt has at least 25 years remaining to maturity with a very advantageous blended rate of 3.86%,” he said.

On Feb. 15, the Pasadena, Calif.-based real estate investment trust focused on life science and technology campuses sold $1 billion of guaranteed senior notes (Baa1/BBB+) in two tranches comprisin a $400 million tranche of 5.25% notes due May 15, 2036 and $600 million of 5.625% notes due May 15, 2054.

“We’re very pleased with the execution of our bond deal, which we completed during the quarter aggregating $1 billion with a weighted average interest rate of 5.48% and a weighted average maturity of 23.1 years,” Binda said.

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