Item 8.01. Other Events.

(1)    Represents square footage with current occupancy that have near-term contractual lease expirations.  Upon expiration of the existing leases, we anticipate this RSF will be redeveloped to office/laboratory space.

(2)    Upon formation of the real estate joint venture, our initial ownership interest in the joint venture is expected to be 44%.  Refer to “Pending 2020 Acquisitions ” under the “Recent Developments” section within Item 8.01 of this Current Report on Form 8-K for additional information.

Key completed 4Q19 acquisitions and updated leverage guidance

In December 2019, we acquired a campus, aggregating 834,782 of operating RSF, at Arsenal on the Charles located in our Cambridge/Inner Suburbs submarket of Greater Boston, for $525.5 million. The campus currently has an operating occupancy of 100% on 681,625 RSF, including 154,855 RSF that is targeted for redevelopment into office/laboratory space upon expiration of existing leases in the near-term. The campus also includes 153,157 RSF of vacant space that we expect to redevelop into laboratory space, and an additional 200,000 RSF of future development opportunities, which will bring its aggregate size to 1,034,782 RSF. Upon stabilization, we expect that 508,012 RSF, or approximately 50% of the campus, will have undergone value-creation activities. We expect to provide total estimated costs and related yields for redevelopment or development in the future, subsequent to the commencement of construction.

In December 2019, we acquired two office buildings, aggregating 478,000 RSF, at 3825 and 3875 Fabian Way located in our Greater Stanford submarket of San Francisco, for $291.0 million. The buildings comprise 250,000 RSF and 228,000 RSF, respectively, with operating occupancy of 100% and remaining lease terms of two and 10 years, respectively. Upon the expiration of the existing 3825 Fabian Way lease term, we expect to redevelop the existing office space into office/laboratory space. Upon the expiration of the 10-year lease at 3875 Fabian Way, we may consider options to develop new Class A office/laboratory, or another suitable type, of space on the site. We expect the initial stabilized yields for the operating properties to be 8.2% and 6.9% (cash basis), respectively. We expect to provide total estimated costs and related yields for redevelopment or development in the future, subsequent to the commencement of construction.

Due to the timing of the closing of these acquisitions in December 2019, we expect to fund a portion of these acquisitions in 2020 on a long-term basis. Consequently, we expect a temporary 0.4x increase in our guidance for net debt to Adjusted EBITDA and net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2019, annualized. We remain committed to our guidance for net debt and preferred stock to Adjusted EBITDA – fourth quarter of 2020, annualized, of less than or equal to 5.2x.

Pending 2020 acquisitions

We have executed letters of intent and/or purchase and sales agreements to acquire the following:

During the first quarter of 2020, we expect to complete the formation of a consolidated real estate joint venture with an established owner and operator in our San Francisco market, targeting a 50% ownership interest. Upon closing, our ownership interest in the real estate joint venture is expected to be 44%, and we anticipate contributing additional capital over time to accrete to our target ownership interest.

We may be unable to complete these acquisitions according to the timeline or the other terms described above.

Settlement of Forward Equity Sales Agreements

Consistent with our expected 2019 sources and uses of capital, as previously disclosed on October 29, 2019, we issued 7.0 million shares of our common stock to settle our remaining outstanding forward equity sales agreements that were entered into during the three months ended June 30, 2019, and received net proceeds of $981.3 million during December 2019. The proceeds were used to fund construction projects during the second half of 2019 and to fund 2019 acquisitions completed prior to December 2019.