We continue to produce high-quality earnings by delivering sustained leasing success, harvesting value from past investments and planting seeds for future growth.
Our value creation strategy is simple: secure the right tenants at the right locations with the right real estate solutions. We achieved robust financial results in 2014, once again generating record rental revenues. Building on our legacy of execution, we produced record total and rental revenues of $674.6 million and $485.8 million, respectively. Total revenues increased 5.9% from 2013, and rental revenues were up 8.9% year-over-year.
For BioMed Realty, it was another year of outstanding leasing and investment performance. We set a new company record for gross leasing in a single year with 2.8 million square feet of leasing, including 1.8 million square feet of new leases and 1.0 million square feet of renewals and extensions with existing tenants. We delivered core funds from operations (CFFO) per diluted share of $1.57 and adjusted funds from operations (AFFO) per diluted share of $1.32.
In the fourth quarter we raised our dividend to $0.26 per share of common stock, a 4.0% increase over our third quarter 2014 dividend of $0.25 per share. The increase resulted in an annualized dividend of $1.04 per common share. In December, we issued a special dividend of $0.30 per share of common stock after the sale of a fully-leased biological manufacturing facility in Rockville, Maryland.
The strategic sale allowed us to lower our debt-to-total gross assets to 38.1% as of December 31, 2014, while our fixed charge coverage ratio remained strong at 4.8 times, and our net debt to adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was a healthy 6.5 times. We ended the year with over $800 million of capacity on our credit facility to help fund strategic future growth.
In April 2014, we took advantage of the interest rate environment and issued $400 million in five-year unsecured debt yielding 2.752% to maturity, utilizing a portion of the proceeds to repay in full a $333 million mortgage loan that bore interest at 7.75% per annum. During the second half of 2014, and subsequent to year-end, we exchanged all of the $180 million outstanding of our exchangeable senior notes at the request of holders into shares of common stock, improving our leverage profile further.
Our consistent focus on maintaining an excellent credit profile earned us a positive outlook from Moody’s in March 2014 and an upgrade of our investment grade corporate credit rating to BBB from Standard & Poor’s in April 2014.
We continue to deliver attractive core business growth while realizing the benefits of the strategic investments we have made in recent years. For example, in 2014:
- We profited from the early termination and pay off of our investment in the construction loan for the Fan Pier development in Boston.
- We continued to gain from our expansion into the United Kingdom, with the start of a build-to-suit development that is 100% pre-leased to Takeda Pharmaceuticals in the Cambridge Science Park.
- We continued to lease up the one million square foot development pipeline that we acquired in connection with our merger with Wexford Science + Technology, which ended the year at 89% leased. This included 3737 Market Street in Philadelphia, which we delivered in the third quarter of 2014 and is now 100% leased, as the result of a lease expansion for 56,000 square feet with Penn Medicine University City in the first quarter of 2015.
All of these are natural extensions of our expertise and demonstrate our ability to create and sustain long-term value for our stockholders.
As of December 31, 2014, we had 1.7 million rentable square feet in active development that was already 85.4% pre-leased. Behind that we had a robust pipeline with another seven million square feet of development potential at year-end. This land bank for future growth opportunities includes over 2.3 million square feet of estimated development potential on a new site in Philadelphia, Pennsylvania, where we leveraged our university platform, Wexford Science + Technology, to form a partnership with Drexel University with the expectation of transforming that University City neighborhood into a model innovation district by creating a new, mixed-use campus for the community and the city of Philadelphia.
We will continue to pursue opportunities for external growth, including new acquisitions and complementary development projects – many of which we expect to come from existing tenant relationships in locations adjacent to the properties in our portfolio.
For BioMed Realty, the future is rich with promise. As the leading provider of real estate solutions to the life science industry, we look forward to executing on our strategy for the benefit of our tenants and stockholders. In keeping with our commitment to foster growth in the life sciences, we will continue investing in today’s industry to support the innovations of tomorrow.