Alexandria Real Estate Equities, Inc. Announces Public Offering of Common Stock

Strategic Insights -

Alexandria Real Estate Equities, Inc. (ARE), a leading urban office real estate investment trust, has commenced an underwritten public offering of 6,500,000 shares of its common stock in connection with forward sale agreements. The company expects to grant the underwriters a 30-day option to purchase up to 975,000 additional shares. The offering is being made pursuant to an effective registration statement on Form S-3 filed with the Securities and Exchange Commission.

Key Takeaways:

  • Alexandria Real Estate Equities, Inc. is issuing 6,500,000 shares of common stock in an underwritten public offering.
  • The company has granted underwriters a 30-day option to purchase up to 975,000 additional shares.
  • The offering is being made pursuant to an effective registration statement on Form S-3 filed with the Securities and Exchange Commission.
  • The company expects to use the net proceeds, if any, from the sale to fund pending acquisitions, construction of highly leased development and redevelopment projects, and for general working capital and other corporate purposes.
  • The forward sale agreements will enable the company to set the price of the shares upon pricing the offering while delaying the issuance of the shares and receipt of net proceeds until the expected funding is required.

Statistics:

  • 6,500,000 shares of common stock are being issued in the public offering.
  • The company may issue up to 7,475,000 shares if the underwriters exercise their option to purchase additional shares in full.
  • The offering will be made pursuant to an effective registration statement on Form S-3, which was previously filed with the Securities and Exchange Commission.
  • The company expects to deliver an aggregate of 6,500,000 shares of its common stock (or 7,475,000 shares if the underwriters exercise their option fully) to the forward purchasers in exchange for cash proceeds per share equal to the applicable forward sale price.
  • The company will not initially receive any proceeds from the sale of shares of its common stock by the forward purchasers or their affiliates in the offering.

Sources:

  • [1] Alexandria Real Estate Equities, Inc. (2023). News Release. Retrieved from
  • [2] Securities and Exchange Commission (n.d.). Form S-3. Retrieved from