Alexandria Real Estate Equities Announces Upsized Public Offering

Strategic Insights -

Alexandria Real Estate Equities, a leading real estate investment trust specializing in urban office properties, has priced an upsized public offering of 7,000,000 shares of its common stock at $184.00 per share. The offering, led by RBC Capital Markets, BofA Securities, and Citigroup, includes a 30-day option to purchase up to 1,050,000 additional shares. The company expects to use the net proceeds from the sale to fund pending acquisitions, general working capital, and reduce outstanding debt.

Key Takeaways:

  • The public offering is expected to raise $1.288 billion in gross proceeds, based on the initial 7,000,000 shares offered at $184.00 per share.
  • The company has entered into forward sale agreements with Royal Bank of Canada, Bank of America, N.A., Citibank, N.A., and Goldman Sachs & Co. LLC to sell up to 8,050,000 shares of its common stock.
  • The forward purchasers, or their affiliates, are expected to borrow and sell an aggregate of 7,000,000 shares of common stock, with an option to sell an additional 1,050,000 shares.
  • The company will receive net proceeds from the forward sale agreements, subject to certain conditions, and intends to use the funds for general working capital and other corporate purposes.
  • The net proceeds from the forward sale agreements will be used to fund pending acquisitions, with any remaining proceeds to be used for general working capital and other corporate purposes.
  • The company's S&P 500 urban office real estate investment trust model has been successful in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.

Statistics:

  • The public offering is expected to raise $1.028 billion in gross proceeds (7,000,000 shares \* $184.00 per share) and up to $1.288 billion with the underwriters' 30-day option to purchase an additional 1,050,000 shares.
  • The company expects to receive net proceeds from the forward sale agreements, with the exact amount subject to certain conditions and adjustments.
  • Alexandria Real Estate Equities has 26.4 million shares of common stock outstanding, according to its most recent Form 10-K filing (¹).
  • The company has a presence in key locations, including Greater Boston (128 million sq. ft.), the San Francisco Bay Area (47 million sq. ft.), New York City (44 million sq. ft.), and more (²).

Sources:

  • PRNewswire: Alexandria Real Estate Equities, Inc. ("Alexandria" or the "Company") (NYSE: ARE) today announced the pricing of its upsized public offering of 7,000,000 shares of the Company's common stock at a price of $184.00 per share in connection with the forward sale agreements described below. (¹)
  • Securities and Exchange Commission: Alexandria Real Estate Equities, Inc.'s Form 10-K filing (²)