Alexandria Real Estate Equities, Inc. has received reaffirmation of its strong credit rating of BBB+ with a positive outlook from S&P Global Ratings. This rating reflects Alexandria’s investment-grade credit ratings, which rank in the top 10% among all publicly traded U.S. REITs, and its significant liquidity of $6.3 billion.
The credit rating is based on several factors, including the scale and quality of Alexandria’s essential Labspace® assets. The company has aggregated these assets into highly differentiated mega campuses primarily located in high-barrier-to-entry markets. The reaffirmed credit rating also takes into account the strong long-term life science fundamentals that drive demand for Alexandria’s high-quality asset base. The company’s diverse client base, which supports growing revenues, stable cash flows, and strong margins, was also a contributing factor. Additionally, Alexandria’s favorable triple-net lease structure and track record of consistent operating performance played a role in the positive assessment.
Marc E. Binda, the Chief Financial Officer and Treasurer of Alexandria Real Estate Equities, Inc., expressed the company’s pleasure at the reaffirmation of their credit rating and positive outlook. Binda stated that the rating is a testament to their operational excellence and their focus on maintaining a strong balance sheet. This strength positions them well to execute on their pioneering, mission-driven business model.
Alexandria’s growth is further supported by a strong and flexible balance sheet. The company has no debt maturities prior to 2025 and 99.2% of its debt is at fixed rates. Its credit ratings rank among the top 10% of all publicly traded U.S. REITs, and it has significant liquidity of $6.3 billion as of June 30, 2023. Additionally, Alexandria has a weighted-average remaining debt term of 13.4 years, one of the longest among all U.S. REITs. The company’s adjusted EBITDA margin for 2Q23 is an industry-leading 70%.
Alexandria Real Estate Equities, Inc. is a best-in-class, mission-driven life science REIT. With a market capitalization of $30.6 billion and an asset base of 74.9 million square feet in North America as of June 30, 2023, the company is a pioneer and leading owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses. Its properties are strategically located in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.
Alexandria’s focus on developing Class A/A+ properties in life science, agtech, and advanced technology mega campuses has resulted in a unique business model. These campuses provide innovative tenants with dynamic and collaborative environments that enhance their ability to recruit and retain world-class talent.
Overall, Alexandria Real Estate Equities, Inc. is well-positioned for continued success with its strong credit rating, flexible balance sheet, and commitment to driving innovation in the life science and technology industries.