Stockholders' equity

6 Months Ended

Jun. 30, 2016

Stockholders' Equity Note [Abstract]

Stockholders' equity

Stockholders’ equity

“At the market” common stock offering program

In December 2015, we established our “at the market” common stock offering program, which allowed us to sell up to an aggregate of $450.0 million of our common stock. During the three months ended June 30, 2016, we sold an aggregate of 3.7 million shares of common stock under this program for gross proceeds of $348.4 million, or $95.31 per share, and net proceeds of approximately $342.5 million. During the six months ended June 30, 2016, we sold an aggregate of 3.9 million shares of common stock for gross proceeds of $374.3 million, or $94.80 per share, and net proceeds of approximately $367.8 million. We used the proceeds from the sales to reduce amounts outstanding under our unsecured senior line of credit. As of June 30, 2016, there was no remaining availability on our “at the market” common stock offering program.

Forward sale agreements

In July 2016, we executed an offering, subject to forward sale agreements, to sell an aggregate of 7.5 million shares of common stock, including 975,000 shares sold pursuant to the exercise in full of the underwriters’ option to purchase additional shares of our common stock, at a public offering price of $101.00 per share. Net proceeds, after issuance costs and underwriters’ discount, of $724.0 million, will be further adjusted as provided in the forward sale agreements. The forward sale agreements allowed us to lock in the price of the shares (subject to certain adjustments) to fund the pending acquisition of One Kendall Square. Settlement may be (i) physical delivery of shares of our common stock for cash, (ii) net cash settlement, whereby we will either pay or receive the difference between the forward contract price and the weighted average market price for our common stock at the time of settlement, or (iii) net share settlement, whereby we will either receive or issue shares of our common stock, with the number of shares issued or received determined by the difference between the forward contract price and the weighted average market price for its common stock at the time of settlement. The forward contract price will be determined under the applicable terms of the forward contract.

Under either of the net settlement provisions, we will pay to the counterparty either cash or shares of common stock when the weighted average market price of our common stock at the time of settlement exceeds the forward contract price, and will receive either cash or shares of common stock to the extent that the weighted average market price of our common stock at the time of settlement is less than the price under the forward contract. Subject to our contractual right to elect cash or net share settlement, we expect to settle the forward sale agreements by issuing the common stock after obtaining approval by the lender to assume the One Kendall Square loan and completing the acquisition of One Kendall Square. Refer to “Acquisition” in Note 3 – “Investments in Real Estate” to these unaudited consolidated financial statements for further discussion.

7.00% Series D cumulative convertible preferred stock redemption

During the three months ended June 30, 2016, we repurchased 1.0 million outstanding shares of our Series D cumulative convertible preferred stock at an aggregate price of $33.7 million, or $33.69 per share. We recognized a preferred stock redemption charge of $9.5 million during the three months ended June 30, 2016, including the write-off of original issuance costs of approximately $781 thousand.

During the six months ended June 30, 2016, we repurchased 1.9 million outstanding shares of our Series D cumulative convertible preferred stock at an aggregate price of $59.3 million, or $30.70 per share. We recognized a preferred stock redemption charge of $12.5 million during the six months ended June 30, 2016, including the write-off of original issuance costs of approximately $1.5 million.

In July 2016, we repurchased 1.1 million outstanding shares of our Series D cumulative convertible preferred stock for an aggregate of $39.3 million, or $36.31 per share, including transaction costs.

Dividends

In June 2016, we declared cash dividends on our common stock for the second quarter of 2016, aggregating $62.4 million, or $0.80 per share. Also in June 2016, we declared cash dividends on our Series D cumulative convertible preferred stock for the second quarter of 2016, aggregating approximately $3.4 million, or $0.4375 per share. Additionally, we declared cash dividends on our Series E cumulative redeemable preferred stock for the second quarter of 2016, aggregating approximately $2.1 million, or $0.403125 per share. In July 2016, we paid the cash dividends on our common stock, Series D cumulative convertible preferred stock, and Series E cumulative redeemable preferred stock for the second quarter of 2016.

Accumulated other comprehensive income

Accumulated other comprehensive income attributable to Alexandria consists of the following (in thousands):

	Net Unrealized Gain (Loss) on:
	Available-for- Sale Equity Securities			Interest Rate Hedge Agreements			Foreign Currency Translation			Total
Balance as of December 31, 2015	$	117,599		$	(3,718	)	$	(64,690	)	$	49,191
Other comprehensive (loss) income before reclassifications	(31,434		)	(10,637		)	2,164			(39,907		)
Amounts reclassified from other comprehensive (income) loss	(10,087		)	2,023			7,028			(1,036		)
	(41,521		)	(8,614		)	9,192			(40,943		)
Amounts attributable to noncontrolling interests	—			—			24			24
Net other comprehensive (loss) income	(41,521		)	(8,614		)	9,216			(40,919		)
Balance as of June 30, 2016	$	76,078		$	(12,332	)	$	(55,474	)	$	8,272

Preferred stock and excess stock authorizations

Our charter authorizes the issuance of up to 100.0 million shares of preferred stock, of which 12.8 million shares were issued and outstanding as of June 30, 2016. In addition, 200.0 million shares of “excess stock” (as defined in our charter) are authorized, none of which were issued and outstanding as of June 30, 2016.