2019 Q4 Form 10-Q Financial Statement

#000103544319000268 Filed on October 29, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q3
Revenue $408.1M $390.5M $341.8M
YoY Change 19.87% 14.24% 19.78%
Cost Of Revenue $121.9M $116.5M $99.80M
YoY Change 24.77% 16.73% 19.52%
Gross Profit $286.3M $274.0M $242.1M
YoY Change 17.92% 13.18% 19.91%
Gross Profit Margin 70.15% 70.17% 70.83%
Selling, General & Admin $29.80M $27.90M $22.70M
YoY Change 33.04% 22.91% 28.98%
% of Gross Profit 10.41% 10.18% 9.38%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $140.5M $135.6M $119.6M
YoY Change 12.4% 13.38% 10.95%
% of Gross Profit 49.07% 49.49% 49.4%
Operating Expenses $170.3M $163.5M $142.2M
YoY Change 15.54% 14.98% 13.4%
Operating Profit $116.0M $110.5M $99.90M
YoY Change 21.59% 10.61% 30.59%
Interest Expense $112.0M $46.20M $42.24M
YoY Change -191.28% 9.37% 36.13%
% of Operating Profit 96.55% 41.81% 42.29%
Other Income/Expense, Net
YoY Change
Pretax Income $216.1M -$36.00M $219.4M
YoY Change -1261.83% -116.41% 268.74%
Income Tax
% Of Pretax Income
Net Earnings $202.4M -$47.20M $213.6M
YoY Change -919.43% -122.09% 297.29%
Net Earnings / Revenue 49.59% -12.09% 62.5%
Basic Earnings Per Share $1.75 -$0.44 $2.01
Diluted Earnings Per Share $1.74 -$0.44 $1.99
COMMON SHARES
Basic Shares Outstanding 115.2M shares 112.1M shares 104.2M shares
Diluted Shares Outstanding 112.1M shares 105.4M shares

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $190.0M $411.0M $204.0M
YoY Change -18.8% 101.47% -66.22%
Cash & Equivalents $189.7M $410.7M $204.2M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables $11.00M $11.00M $11.00M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $201.0M $422.0M $215.0M
YoY Change -17.62% 96.28% 66.67%
LONG-TERM ASSETS
Property, Plant & Equipment $23.03M $17.51M $12.96M
YoY Change 55.75% 35.14% 13.24%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $1.487B $1.331B $1.155B
YoY Change 31.59% 15.24% 122.54%
Other Assets $1.012B $961.0M $834.0M
YoY Change 18.22% 15.23% 30.72%
Total Long-Term Assets $18.19B $16.64B $13.89B
YoY Change 27.91% 19.77% 21.67%
TOTAL ASSETS
Total Short-Term Assets $201.0M $422.0M $215.0M
Total Long-Term Assets $18.19B $16.64B $13.89B
Total Assets $18.39B $17.06B $14.11B
YoY Change 27.14% 20.93% 22.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $475.0M $492.0M $446.0M
YoY Change -3.26% 10.31% 31.95%
Accrued Expenses $272.0M $271.0M
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $873.0M $879.0M $547.0M
YoY Change 45.26% 60.69% 29.93%
LONG-TERM LIABILITIES
Long-Term Debt $6.777B $6.738B $5.684B
YoY Change 23.71% 18.54% 18.0%
Other Long-Term Liabilities $574.0M $479.0M $461.0M
YoY Change 17.14% 3.9% 14.68%
Total Long-Term Liabilities $7.351B $7.217B $6.145B
YoY Change 23.17% 17.45% 17.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $873.0M $879.0M $547.0M
Total Long-Term Liabilities $7.351B $7.217B $6.145B
Total Liabilities $8.224B $8.095B $6.692B
YoY Change 25.17% 20.96% 18.64%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock $1.208M $1.132M $1.058M
YoY Change 8.83% 6.99% 12.2%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.866B $7.790B $6.873B
YoY Change
Total Liabilities & Shareholders Equity $18.39B $17.06B $14.11B
YoY Change 27.14% 20.93% 22.18%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income $202.4M -$47.20M $213.6M
YoY Change -919.43% -122.09% 297.29%
Depreciation, Depletion And Amortization $140.5M $135.6M $119.6M
YoY Change 12.4% 13.38% 10.95%
Cash From Operating Activities $178.3M $197.3M $155.9M
YoY Change 14.15% 26.56% 16.78%
INVESTING ACTIVITIES
Capital Expenditures -$1.280B -$911.6M -$490.8M
YoY Change 262.08% 85.74% 46.55%
Acquisitions
YoY Change
Other Investing Activities -$10.20M $13.10M -$4.400M
YoY Change -76.82% -397.73% -257.14%
Cash From Investing Activities -$1.290B -$898.7M -$495.2M
YoY Change 224.47% 81.48% 49.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 901.8M 916.5M 251.3M
YoY Change 221.38% 264.7% 26.22%
NET CHANGE
Cash From Operating Activities 178.3M 197.3M 155.9M
Cash From Investing Activities -1.290B -898.7M -495.2M
Cash From Financing Activities 901.8M 916.5M 251.3M
Net Change In Cash -210.3M 215.1M -88.00M
YoY Change -637.85% -344.43% -17700.0%
FREE CASH FLOW
Cash From Operating Activities $178.3M $197.3M $155.9M
Capital Expenditures -$1.280B -$911.6M -$490.8M
Free Cash Flow $1.459B $1.109B $646.7M
YoY Change 186.11% 71.47% 38.07%

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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2018Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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<div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;font-weight:bold;">Organization and basis of presentation</span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&amp;P 500</span><span style="font-family:Arial;font-size:9pt;"><sup style="vertical-align:top;line-height:120%;font-size:6pt">® </sup></span><span style="font-family:Arial;font-size:9pt;">urban office REIT, is the first and longest-tenured owner, operator, and developer uniquely focused on collaborative life science, technology, and agtech campuses in AAA innovation cluster locations. As used in this </span><span style="font-family:Arial;font-size:9pt;">quarterly report</span><span style="font-family:Arial;font-size:9pt;"> on Form 10‑Q, references to the “Company,” “Alexandria,” “ARE,” “we,” “us,” and “our” refer to Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries. The accompanying unaudited consolidated financial statements include the accounts of Alexandria Real Estate Equities, Inc. and its consolidated subsidiaries. All significant intercompany balances and transactions have been eliminated.</span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">We have prepared the accompanying interim consolidated financial statements in accordance with GAAP and in conformity with the rules and regulations of the SEC. In our opinion, the interim consolidated financial statements presented herein reflect all adjustments, of a normal recurring nature, that are necessary to fairly present the interim consolidated financial statements. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the year ending </span><span style="font-family:Arial;font-size:9pt;">December 31, 2019</span><span style="font-family:Arial;font-size:9pt;">. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our annual report on Form 10‑K for the year ended </span><span style="font-family:Arial;font-size:9pt;">December 31, 2018</span><span style="font-family:Arial;font-size:9pt;">. Any references to our market capitalization, number or quality of buildings or tenants, quality of location, square footage, number of leases, or occupancy percentage, and any amounts derived from these values in these notes to consolidated financial statements, are outside the scope of our independent registered public accounting firm’s review.</span></div>
us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;text-decoration:underline;">Reclassifications</span></div><div style="line-height:120%;text-align:left;font-size:9pt;"><span style="font-family:inherit;font-size:9pt;"> </span></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Certain prior-period amounts have been reclassified to conform to current-period presentation. Refer to the “Lease Accounting” section within this Note 2 – “Summary of Significant Accounting Policies” to these unaudited consolidated financial statements.</span></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;text-decoration:underline;">Use of estimates</span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, and equity; the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements; and the amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</span></div>
are Maximum Expected Period Of Sale Of Property
MaximumExpectedPeriodOfSaleOfProperty
P1Y
CY2019Q3 are Cost Method Investment Ownership Percentage
CostMethodInvestmentOwnershipPercentage
0.10
us-gaap Revenue Recognition Leases
RevenueRecognitionLeases
<div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;text-decoration:underline;">Revenues</span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">The table below provides detail of our consolidated total revenues for the </span><span style="font-family:Arial;font-size:9pt;">three and nine months ended September 30, 2019</span><span style="font-family:Arial;font-size:9pt;"> (in thousands):</span></div><div style="line-height:120%;text-align:center;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;margin-left:auto;margin-right:auto;width:100%;border-collapse:collapse;text-align:left;"><tr><td colspan="9"/></tr><tr><td style="width:60%;"/><td style="width:1%;"/><td style="width:1%;"/><td style="width:17%;"/><td style="width:1%;"/><td style="width:1%;"/><td style="width:1%;"/><td style="width:17%;"/><td style="width:1%;"/></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:center;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">September 30, 2019</span></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;"><div style="text-align:center;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Three Months Ended</span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;"><div style="text-align:center;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Nine Months Ended</span></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Income from rentals:</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="3" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Revenues subject to the new lease accounting standard:</span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Operating leases</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">$</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>372,593</span></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">$</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>1,074,395</span></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr><tr><td style="vertical-align:bottom;padding-left:20px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Direct financing lease</span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>607</span></span></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>1,812</span></span></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Revenues subject to the new lease accounting standard</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>373,200</span></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>1,076,207</span></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Revenues subject to the revenue recognition accounting standard</span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>12,576</span></span></div></td><td style="vertical-align:bottom;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>35,936</span></span></div></td><td style="vertical-align:bottom;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Income from rentals</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>385,776</span></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>1,112,143</span></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Other income</span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>4,708</span></span></div></td><td style="vertical-align:bottom;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>11,039</span></span></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">Total revenues</span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">$</span></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>390,484</span></span></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;"><div style="overflow:hidden;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"> </span></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;"><div style="text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">$</span></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;"><div style="text-align:right;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><span>1,123,182</span></span></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;"><div style="text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;"><br/></span></div></td></tr></table></div><span style="font-family:inherit;font-size:10pt;"><br/></span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">During the </span><span style="font-family:Arial;font-size:9pt;">three and nine months ended September 30, 2019</span><span style="font-family:Arial;font-size:9pt;">, revenues that were subject to the new lease accounting standard aggregated </span><span style="font-family:Arial;font-size:9pt;"><span>$373.2 million</span></span><span style="font-family:Arial;font-size:9pt;"> and </span><span style="font-family:Arial;font-size:9pt;"><span>$1.1 billion</span></span><span style="font-family:Arial;font-size:9pt;">, respectively, and represented </span><span style="font-family:Arial;font-size:9pt;"><span>95.6%</span></span><span style="font-family:Arial;font-size:9pt;"> and </span><span style="font-family:Arial;font-size:9pt;"><span>95.8%</span></span><span style="font-family:Arial;font-size:9pt;">, respectively, of our total revenues. </span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">During the </span><span style="font-family:Arial;font-size:9pt;">three and nine months ended September 30, 2019</span><span style="font-family:Arial;font-size:9pt;">, our total revenues also included </span><span style="font-family:Arial;font-size:9pt;"><span>$17.3 million</span></span><span style="font-family:Arial;font-size:9pt;">, or </span><span style="font-family:Arial;font-size:9pt;"><span>4.4%</span></span><span style="font-family:Arial;font-size:9pt;">, and </span><span style="font-family:Arial;font-size:9pt;"><span>$47.0 million</span></span><span style="font-family:Arial;font-size:9pt;">, or </span><span style="font-family:Arial;font-size:9pt;"><span>4.2%</span></span><span style="font-family:Arial;font-size:9pt;">, respectively, subject to other accounting guidance. For a detailed discussion related to our revenue streams, refer to the “Lease Accounting” and “Recognition of Revenue Arising From Contracts With Customers” sections within this Note 2 – “Summary of Significant Accounting Policies” to these unaudited consolidated financial statements.</span></div>
CY2019Q3 us-gaap Operating Lease Lease Income
OperatingLeaseLeaseIncome
372593000 USD
us-gaap Operating Lease Lease Income
OperatingLeaseLeaseIncome
1074395000 USD
CY2019Q3 us-gaap Direct Financing Lease Lease Income
DirectFinancingLeaseLeaseIncome
607000 USD
us-gaap Direct Financing Lease Lease Income
DirectFinancingLeaseLeaseIncome
1812000 USD
CY2019Q3 us-gaap Lease Income
LeaseIncome
373200000 USD
us-gaap Lease Income
LeaseIncome
1076207000 USD
CY2019Q3 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
390484000 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
1123182000 USD
CY2019Q3 us-gaap Lease Income
LeaseIncome
373200000 USD
us-gaap Lease Income
LeaseIncome
1100000000 USD
CY2019Q3 are Percentageoftotalrevenues
Percentageoftotalrevenues
0.956
are Percentageoftotalrevenues
Percentageoftotalrevenues
0.958
CY2019Q1 us-gaap Sales Type Lease Initial Direct Cost Expense Commencement
SalesTypeLeaseInitialDirectCostExpenseCommencement
3500000 USD
CY2019Q1 are Ground And Operating Lease Obligation Due
GroundAndOperatingLeaseObligationDue
590300000 USD
CY2019Q1 us-gaap Operating Lease Liability
OperatingLeaseLiability
218700000 USD
CY2019Q1 are Reclassification Of Deferred Rent Liabilities
ReclassificationOfDeferredRentLiabilities
27000000.0 USD
are Minimum Percentage Of Taxable Income To Be Distributed
MinimumPercentageOfTaxableIncomeToBeDistributed
0.90
are Percent Of Taxable Income Generally Distributed As Dividend
PercentOfTaxableIncomeGenerallyDistributedAsDividend
1
us-gaap Derivatives Methods Of Accounting Hedge Effectiveness
DerivativesMethodsOfAccountingHedgeEffectiveness
<div style="line-height:120%;text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;text-decoration:underline;">Hedge accounting</span></div><div style="line-height:120%;text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">From time to time, we utilize interest rate hedge agreements to manage a portion of our exposure to variable interest rates. Historically, our interest rate hedge agreements primarily related to our borrowings with variable interest rates based on LIBOR. However, in connection with the LIBOR cessation projected by the end of 2021 and the potential replacement of this rate in the U.S. with the Secured Overnight Financing Rate (“SOFR”), we have paid down the majority of our outstanding borrowings of LIBOR-based debt and terminated our related interest rate hedge agreements, to minimize our exposure to LIBOR. As a result, as of </span><span style="font-family:Arial;font-size:9pt;">September 30, 2019</span><span style="font-family:Arial;font-size:9pt;">, we had no outstanding interest rate hedge agreements and no LIBOR-based debt other than the remaining balance of </span><span style="font-family:Arial;font-size:9pt;"><span>$343.0 million</span></span><span style="font-family:Arial;font-size:9pt;"> outstanding under our $2.2 billion unsecured senior line of credit facility, which was repaid in full in October 2019. </span></div><div style="line-height:120%;text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">In October 2018, the FASB issued an accounting standard that expanded the list of U.S. benchmark interest rates permitted in the application of hedge accounting to include the overnight index swap rate based on SOFR. The accounting standard became effective for us and was adopted on January 1, 2019. Upon adoption on January 1, 2019, and during the </span><span style="font-family:Arial;font-size:9pt;">nine months ended September 30, 2019</span><span style="font-family:Arial;font-size:9pt;">, we had no hedges based on SOFR; therefore, the adoption of this accounting standard had no effect on our consolidated financial statements. Should we issue variable interest rate debt in the future, including SOFR-based debt, and enter into related interest rate hedge agreements to manage our exposure to variable interest rates, we will continue applying the interest hedge accounting policy, described below, that has been applied to our interest rate hedge agreements based on LIBOR. </span></div><div style="line-height:120%;text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">When we issue variable interest rate debt, we may enter into interest rate hedge agreements to manage our exposure to variable interest rates. As a result, our interest rate hedge agreements are generally designated as cash flow hedges. At the inception of a hedge agreement, we are required to perform an initial quantitative assessment to determine whether a hedge is highly effective in offsetting changes in cash flows associated with the hedged item. For cash flow hedges that are highly effective at inception and continue to be highly effective, we record all changes (effective and ineffective components) in the fair value of our hedges, including accrued interest and adjustments for non-performance risk, in accumulated other comprehensive income within total equity and reclassify them into earnings when the hedged item affects earnings. Subsequently, we may perform only a qualitative assessment, unless facts and circumstances change.</span></div><div style="line-height:120%;text-align:left;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;">The fair value of each interest rate hedge agreement is determined using widely accepted valuation techniques, including discounted cash flow analyses on the expected cash flows of each derivative. These analyses reflect the contractual terms of the derivatives, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. The fair values of our interest rate hedge agreements are determined using the market-standard methodology of netting the discounted future fixed-cash payments and the discounted expected variable-cash receipts. The variable-cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The fair value calculation also includes an amount for risk of non-performance of our counterparties using “significant unobservable inputs,” such as estimates of current credit spreads to evaluate the likelihood of default.</span></div><div style="line-height:120%;font-size:9pt;"><span style="font-family:Arial;font-size:9pt;"><br/></span></div>We classify fair values of our interest rate hedge agreements in asset positions within other assets, and the fair values of our interest rate hedge agreements in liability positions within accounts payable, accrued expenses, and other liabilities, without any offsetting pursuant to master netting agreements. In agreements with certain of our derivative counterparties, we may have provisions wherein we could be declared in default on our derivative obligations if (i) repayment of the underlying indebtedness is accelerated by the lender due to our default on the indebtedness or (ii) we default on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender.
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us-gaap Incremental Common Shares Attributable To Equity Forward Agreements
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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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