67 WALL STREET, New York - October 25, 2013 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Pricing Power Outlook - Acquisition and Financing Costs - Apartment, Lodging, Self-Storage and Office REITs - Consolidation Activity - REIT Access to Capital
Companies include: Alexandria Real Estate Equitie (ARE) and many more.
In the following excerpt from the REITs Report, the Founder, Chairman and CEO of Alexandria Real Estate Equities, Inc. (ARE) discusses company strategy and the outlook for this vital industry:
TWST: How important are joint venture partners to your capital strategy, and would you discuss your access to capital in general? You had a couple of stock and note offerings in the relatively recent past.
Mr. Marcus: Pre-Lehman we were an unrated company, and it was pretty clear after the financial crisis that in order to drive cost of capital down the best thing to do would be to get rated by the agencies. So we spent a couple of years, the better part of 2009, 2010 and into 2011, positioning the company for an investment-grade rating. We did receive investment-grade ratings from Moody's and S&P. That enabled us to tap the long-term bond market, which we did in both 2012 and again this year.
Those deals totaled well over $1 billion, essentially 10-year unsecured money; one of those was 3.9%, the other was 4.6%. We have on occasion looked at joint ventures, and we have done one major joint venture in the Longwood Medical Area. Our view of the capital structure is we want maximum optionality and flexibility, so we want as many varieties of capital as possible that will help us drive our overall cost down and increase our spread on investment.
TWST: What were the highlights from your most recent quarterly earnings results, which I believe were the second quarter's?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.