EX-99.1 2 a2q24ex991supp.htm EX-99.1 2Q24 EX 99.1 SUPP
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Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
COMPANY HIGHLIGHTS
Page
Page
Mission and Cluster Model .....................................................................
Corporate Responsibility ....................................................................
EARNINGS PRESS RELEASE
Page
Page
Second Quarter Ended June 30, 2024 Financial and Operating
Results ...................................................................................................
Guidance ...................................................................................................
Consolidated Statements of Operations ..........................................
Acquisitions ...............................................................................................
Consolidated Balance Sheets ............................................................
Dispositions and Sales of Partial Interests ..........................................
SUPPLEMENTAL INFORMATION
Page
Page
Company Profile .......................................................................................
External Growth / Investments in Real Estate
Investor Information .................................................................................
Investments in Real Estate ................................................................
Financial and Asset Base Highlights .....................................................
New Class A/A+ Development and Redevelopment Properties:
High-Quality and Diverse Client Base .................................................
Recent deliveries ............................................................................
Occupancy ................................................................................................
Current Projects ..............................................................................
Internal Growth
Summary of Pipeline ......................................................................
Key Operating Metrics .............................................................................
Same Property Performance ..................................................................
Joint Venture Financial Information ...................................................
Leasing Activity .........................................................................................
Balance Sheet Management
Contractual Lease Expirations ...............................................................
Investments ..........................................................................................
Top 20 Tenants .........................................................................................
Key Credit Metrics ...............................................................................
Summary of Properties and Occupancy ..............................................
Summary of Debt .................................................................................
Property Listing ........................................................................................
Definitions and Reconciliations
Definitions and Reconciliations ..........................................................
CONFERENCE CALL
INFORMATION:
Tuesday, July 23, 2024
3:00 p.m. Eastern Time
12:00 p.m. Pacific Time
(833) 366-1125 or
(412) 902-6738
Ask to join the conference call for
Alexandria Real Estate Equities, Inc.
CONTACT INFORMATION:
Alexandria Real Estate Equities, Inc.
corporateinformation@are.com
JOEL S. MARCUS
Executive Chairman &
Founder
PETER M. MOGLIA
Chief Executive Officer &
Chief Investment Officer
DANIEL J. RYAN
Co-President & Regional Market
Director – San Diego
HUNTER L. KASS
Co-President & Regional Market
Director – Greater Boston
MARC E. BINDA
Chief Financial Officer &
Treasurer
PAULA SCHWARTZ
Managing Director,
Rx Communications Group
(917) 633-7790
SARA M. KABAKOFF
Senior Vice President –
Chief Content Officer
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Table of Contents
June 30, 2024
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ALEXANDRIA’S
COMPETITIVE
ADVANTAGES
First mover advantage in the
top life science clusters
High-quality assets aggregated
in desirable and well-amenitized
mega campuses
High-quality cash flows and
substantial embedded future
net operating income
Longstanding tenant
relationships that demonstrate
stellar brand loyalty
Fortress balance sheet with
significant liquidity
Unique and deep life science
industry expertise
Long-tenured and highly
experienced management team
IRREPLACEABLE
LABSPACE® REAL ESTATE
PLATFORM THAT LEADS THE
ASSET CLASS WE PIONEERED
42.1M
OPERATING RSF
Alexandria mega campuses
encompass 74% of our
annual rental revenue
As of June 30, 2024. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
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ALEXANDRIA’S OUTSTANDING LONG-TERM VALUE
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HEALTHCARE
REALTY TRUST
WELLTOWER
2,274%
NATIONAL HEALTH
INVESTORS
1,092%
FTSE NAREIT EQUITY
HEALTH CARE INDEX
1,091%
LTC
PROPERTIES
1,048%
VENTAS
862%
MSCI US
REIT INDEX
790%
OMEGA HEALTHCARE
INVESTORS
605%
HEALTHPEAK
PROPERTIES
589%
Total Shareholder Return From ARE’s IPO on May 27, 1997(1) to June 30, 2024
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Source: S&P Global Market Intelligence. Assumes reinvestment of dividends.
The REITs presented individually in the chart above are only those constituents of the FTSE NAREIT Equity Health Care Index as of June 30, 2024 for which TSR information since May 27, 1997 is available.
(1)Alexandria’s initial public offering (“IPO”) was priced at $20.00 per share on May 27, 1997.
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ALEXANDRIA’S
INTERNAL
GROWTH
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ALEXANDRIA’S SOLID LEASING VOLUME IN 2024 REMAINS IN LINE WITH
OUR HISTORICAL ANNUAL AVERAGE FROM 2013 THROUGH 2020
Annualized
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ALEXANDRIA’S OPERATIONAL EXCELLENCE DRIVES STEADY
AND CONSISTENTLY HIGH OCCUPANCY
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(1)Represents the average of acquired vacancy percentages as of each years ended December 31, 2020 through 2023.
(2)Represents the midpoint of our 2024 guidance range for occupancy percentage in North America as of December 31, 2024. Refer to “Guidance” in the Earnings Press Release for additional details.
(3)Represents occupancy percentage of operating properties in North America as of each period-end.
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ALEXANDRIA’S REIT INDUSTRY-LEADING CLIENT BASE OF APPROXIMATELY
800 TENANTS DRIVES STABLE, RESILIENT, AND LONG-DURATION CASH FLOWS
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Life Science
Product,
Service, and
Device
Multinational
Pharmaceutical
Public
Biotechnology –
Approved or
Marketed
Product
Public
Biotechnology –
Preclinical or
Clinical Stage
Private
Biotechnology
Other(3)
Investment-Grade or
Large Cap Tech
Future Change in
Use(2)
Biomedical and
Government
Institutions
92%
of Top 20 Tenant Annual Rental
Revenue as of 2Q24 Is From
Investment-Grade or Publicly
Traded Large Cap Tenants (1)
79%
of Leasing Activity During the
Last Twelve Months Was
Generated From Alexandria’s
Existing Client Base
As of June 30, 2024. Annual rental revenue represents amounts in effect as of June 30, 2024. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents the percentage of our annual rental revenue generated by our top 20 tenants that are also investment-grade or publicly traded large cap tenants.
(2)Represents the percentage of our annual rental revenue generated from space that is currently targeted for a future change in use to laboratory space, including 1.0% of annual rental revenue that is generated from covered land play
projects for future development opportunities. The weighted-average remaining term of these leases is 2.9 years.
(3)Represents the percentage of our annual rental revenue generated by “Other” tenants, which comprise technology, professional services, finance, telecommunications, and construction/real estate companies, and (by less than 1.0% of
our annual rental revenue) retail-related tenants.
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ALEXANDRIA’S SUSTAINED OPERATIONAL EXCELLENCE AND
STRENGTH IN TENANT COLLECTIONS
99.8%
Average Tenant
Collections
1Q21–2Q24
Tenant Receivables
Represent
0.9%
of 2Q24
Rental Revenues
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TENANTS RENTS AND RECEIVABLES COLLECTED(1)
As of June 30, 2024.
(1)Represents tenant rents and receivables collected for each quarter-end as of each respective earnings release date.
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ALEXANDRIA’S
EXTERNAL
GROWTH
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Refer to “Net operating income” under “Definitions and reconciliations” in the Supplemental Information for additional details, including its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.
(1)Our share of incremental annual net operating income from development and redevelopment projects expected to be placed into service primarily commencing from 3Q24 through 1Q28 is projected to be $380 million.
(2)Represents expected incremental annual net operating income to be placed into service from deliveries of projects undergoing construction and one committed near-term project expected to commence construction in the next two years.
(3)Includes 1.5 million RSF that is expected to stabilize through 2025 and is 87% leased, and partial deliveries through 4Q25 from projects expected to stabilize in 2026 and beyond. In addition to the projects represented, we are evaluating
one priority anticipated development project that could commence active construction in 2H24 and may have initial delivery in 2025. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and
redevelopment properties: current projects” in the Supplemental Information for additional details.
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ALEXANDRIA’S STRONG
EXECUTION OF OUR
ASSET RECYCLING
PROGRAM
STRATEGIC DISPOSITIONS
AND SALES OF PARTIAL
INTERESTS SINCE 2019
$8.4 BILLION
IN SALES
$3.0 BILLION
IN GAINS
(1)
(2)
(1)Includes amounts related to real estate dispositions and sales of partial interests completed from January 1, 2019 through June 30, 2024.
(2)Represents aggregate gains on real estate sales and associated real estate impairments and consideration in excess of book value of partial interests sold that were accounted as equity transactions.
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ALEXANDRIA’S
FORTRESS
BALANCE SHEET
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TOP 10%
CREDIT RATING RANKING AMONG ALL PUBLICLY TRADED U.S. REITS (1)
ALEXANDRIA’S STRONG AND FLEXIBLE
BALANCE SHEET WITH SIGNIFICANT LIQUIDITY
WEIGHTED AVERAGE
4Q24 TARGET
YEARS
Baa1
Stable
BBB+
Stable
SIGNIFICANT
LIQUIDITY (2)
PERCENTAGE OF
DEBT MATURING
2049 & BEYOND
PERCENTAGE
OF DEBT AT
FIXED RATES
$5.6B
32%
97.3%
NET DEBT AND
PREFERRED STOCK TO
ADJUSTED EBITDA(3)
REMAINING
DEBT TERM
INTEREST
RATE
≤5.1x
13.0
3.89%
As of June 30, 2024.
(1)A credit rating is not a recommendation to buy, sell, or hold securities and may be subject to revision or withdrawal at any time. Top 10% ranking represents credit rating levels from S&P Global Ratings and Moody’s Investors Service
for publicly traded U.S. REITs, from Bloomberg Professional Services and Nareit.
(2)Refer to “Key credit metrics” in the Supplemental Information for additional details.
(3)Quarter annualized. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
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ALEXANDRIA’S HISTORICALLY CONSISTENT, STRONG, AND INCREASING
DIVIDENDS WITH A FOCUS ON RETAINING SIGNIFICANT CASH FLOWS FROM
OPERATING ACTIVITIES AFTER DIVIDENDS FOR REINVESTMENT
For 2Q24, we declared a cash dividend of $1.30 per common share
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4.4%
Dividend Yield
5.4%
Average Annual Dividend
Per-Share Growth
$2.1B
Net Cash Provided by
Operating Activities
After Dividends
(1)
(2)
(3)
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ANNUAL COMMON STOCK DIVIDEND PER SHARE
(4)
(1)Dividend yield is calculated as the dividend declared for the three months ended June 30, 2024 of $1.30 per common share annualized divided by the closing price of our common stock on June 30, 2024 of $116.97.
(2)Represents the years ended December 31, 2020 through 2023 and the three months ended June 30, 2024 annualized.
(3)Represents the years ended December 31, 2020 through 2023 and the midpoint of our 2024 guidance range. Refer to “Guidance” in the Earnings Press Release for additional details.
(4)Represents common stock dividend declared for the three months ended June 30, 2024 annualized.
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ALEXANDRIA: AT THE
VANGUARD AND HEART
OF THE $5 TRILLION(1)
SECULARLY GROWING LIFE
SCIENCE INDUSTRY
(1)Source: YCharts. Represents the aggregate market capitalization for the life science industry, including companies in the biotechnology and pharmaceutical sectors, as of July 12, 2024.
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(1)Source: YCharts. Represents the aggregate market capitalization for the life science industry, including companies in the biotechnology and pharmaceutical sectors, as of July 12, 2024.
(2)Source: Evaluate Pharma, March 2024. Represents consensus forecast for global biopharma R&D spend in 2023.
(3)Sources: PitchBook, BioCentury, and NASDAQ. Includes venture capital investments in U.S.-based life science companies and IPOs, follow-ons, and public equity financings raised by U.S. listed biopharma companies in 2023.
(4)Sources: National Institutes of Health (“NIH”) and National Science Foundation (“NSF”). Includes FY2023 NIH funding and FY2023 NSF research and related activities.
(5)Source: The Giving Institute, “Giving USA 2024: The Annual Report on Philanthropy for the Year 2023.”
(6)Dollar amount represents aggregate funding from all sources presented, and percentage represents the aggregate increase in funding compared to the previous five-year period (2014–2018).
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Source: U.S. Food and Drug Administration. Novel therapies approved by the FDA (Center for Drug Evaluation and Research (“CDER”)) include new molecular entities and new biologics defined as products containing active moieties that
have not previously been approved by the FDA. mRESVIA was approved under the FDA Center for Biologics Evaluation and Research ("CBER") pathway.
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Source: Evaluate Pharma, March 2024. Total corporate R&D spend by global biopharma companies. Includes analyst forecast values for companies that have not reported 2023 full-year results. Top 20 companies ranked by pharma R&D
spend in 2023.
(1)Source: Evaluate Pharma, “World Preview 2022 Outlook to 2028: Patents and Pricing.”
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Source: BioCentury, June 2024. Represents public follow-on and private investment in public equity (“PIPE”) financings completed by U.S. listed biopharma companies.
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Source: PitchBook, July 2024.
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ALEXANDRIA’S
CORPORATE
RESPONSIBILITY
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Alexandria Real Estate Equities, Inc. Reports:
2Q24 and 1H24 Net Income per Share – Diluted of $0.25 and $1.22, respectively; and
2Q24 and 1H24 FFO per Share – Diluted, as Adjusted, of $2.36 and $4.71, respectively
PASADENA, Calif. – July 22, 2024 – Alexandria Real Estate Equities, Inc. (NYSE: ARE)
announced financial and operating results for the second quarter ended June 30, 2024.
Key highlights
Operating results
2Q24
2Q23
1H24
1H23
Total revenues:
In millions
$766.7
$713.9
$1,535.8
$1,414.7
Growth
7.4%
8.6%
Net income attributable to Alexandria’s common stockholders – diluted:
In millions
$42.9
$87.3
$209.8
$162.5
Per share
$0.25
$0.51
$1.22
$0.95
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted:
In millions
$405.5
$382.4
$809.4
$756.1
Per share
$2.36
$2.24
$4.71
$4.43
An operationally excellent, industry-leading REIT with a high-quality, diverse client base to support
growing revenues, stable cash flows, and strong margins
(As of June 30, 2024, unless stated otherwise)
Percentage of annual rental revenue in effect from mega campuses
74%
Percentage of annual rental revenue in effect from investment-grade or publicly
traded large cap tenants
53%
Sustained strength in tenant collections:
Tenant receivables as a percentage of 2Q24 rental revenues
0.9%
July 2024 tenant rents and receivables collected as of July 22, 2024
99.7%
2Q24 tenant rents and receivables collected as of July 22, 2024
99.9%
Occupancy of operating properties in North America
94.6%
Operating margin
72%
Adjusted EBITDA margin
72%
Percentage of leases containing annual rent escalations
96%
Weighted-average remaining lease term:
Top 20 tenants
9.4
years
All tenants
7.4
years
Strong leasing volume and solid rental rate increases
•Strong leasing volume aggregating 1.1 million RSF during 2Q24.
•Solid rental rate increases of 7.4% and 3.7% (cash basis) for 2Q24 and 26.2% and 15.0%
(cash basis) for 1H24.
•79% of our leasing activity during the last twelve months was generated from our existing
tenant base.
2Q24
1H24
Total leasing activity – RSF
1,114,001
2,256,858
Leasing of development and redevelopment space – RSF
340,989
441,221
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)
589,650
1,584,420
Rental rate increase
7.4%
26.2%
Rental rate increase (cash basis)
3.7%
15.0%
Continued solid net operating income and internal growth
•Net operating income (cash basis) of $1.9 billion for 2Q24 annualized, up $122.7 million, or
6.9%, compared to 2Q23 annualized.
•Same property net operating income growth of 1.5% and 3.9% (cash basis) for 2Q24 over
2Q23 and 1.1% and 3.7% (cash basis) for 1H24 over 1H23.
•96% of our leases contain contractual annual rent escalations approximating 3%.
Strong and flexible balance sheet with significant liquidity; top 10% credit rating ranking among all
publicly traded U.S. REITs
•Net debt and preferred stock to Adjusted EBITDA of 5.4x and fixed-charge coverage ratio of
4.5x for 2Q24 annualized.
•Significant liquidity of $5.6 billion.
•32% of our total debt matures in 2049 and beyond.
•13.0 years weighted-average remaining term of debt.
•97.3% of our debt has a fixed rate.
•Total debt and preferred stock to gross assets of 29%.
•$1.1 billion of expected capital contribution commitments from existing consolidated real
estate joint venture partners to fund construction from 3Q24 through 2027.
Consistent dividend strategy with a focus on retaining significant net cash flows from operating
activities after dividends for reinvestment
•Common stock dividend declared for 2Q24 of $1.30 per common share aggregating $5.08
per common share for the twelve months ended June 30, 2024, up 24 cents, or 5%, over the
twelve months ended June 30, 2023.
•Dividend yield of 4.4% as of June 30, 2024.
•Dividend payout ratio of 55% for the three months ended June 30, 2024.
•Average annual dividend per-share growth of 5% from 2020 through 2Q24 annualized.
•Significant net cash flows from operating activities after dividends retained for reinvestment
aggregating $2.1 billion for the years ended December 31, 2020 through 2023 and including
the midpoint of our 2024 guidance range for net cash provided by operating activities after
dividends.
Ongoing execution of Alexandria’s 2024 capital strategy
We expect to continue pursuing our strategy to fund a significant portion of our capital
requirements for the year ending December 31, 2024 with dispositions and sales of partial
interests and are actively pursuing several dispositions and partial interest sale opportunities.
(in millions)
Completed dispositions of 100% interest in properties not integral to our mega campus
strategy
$77
(1)
Pending transactions subject to letters of intent or purchase and sale agreement
negotiations
807
Forward equity sales agreements expected to be settled in 2024
27
911
Additional targeted dispositions, sales of partial interests, and common equity
639
2024 guidance midpoint for dispositions, sales of partial interests, and common equity
$1,550
(1)Refer to “Dispositions and sales of partial interests” in the Earnings Press Release for additional details.
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Alexandria’s highly leased value-creation pipeline delivered incremental annual net operating
income of $16 million commencing during 2Q24 and is expected to deliver incremental annual net
operating income aggregating $480 million by 1Q28
•During 2Q24, we placed into service development and redevelopment projects aggregating
284,982 RSF that are 100% leased across multiple submarkets and delivered incremental
annual net operating income of $16 million. 2Q24 deliveries included:
•195,435 and 25,655 RSF at 9810 Darnestown Road and 9808 Medical Center Drive,
respectively, located on the Alexandria Center® for Life Science – Shady Grove mega
campus  in our Rockville submarket.
•Annual net operating income (cash basis) is expected to increase by $80 million upon the
burn-off of initial free rent, with a weighted-average burn-off period of approximately seven
months, from recently delivered projects.
•69% of the RSF in our total value-creation pipeline is within our mega campuses.
Development and Redevelopment Projects
Incremental
Annual Net
Operating Income
RSF
Leased/
Negotiating
Percentage
(dollars in millions)
Placed into service:
1Q24
$26
343,445
100%
2Q24
16
284,982
100
Placed into service in 1H24
$42
628,427
100%
Expected to be placed into service(1):
3Q24 through 4Q25
$187
(2)
5,432,915
61%
1Q26 through 1Q28
293
(3)
$480
(1)Represents expected incremental annual net operating income to be placed into service from deliveries of
projects undergoing construction and one committed near-term project expected to commence construction in
the next two years.
(2)Includes 1.5 million RSF that is expected to stabilize through 2025 and is 87% leased, and partial deliveries
through 4Q25 from projects expected to stabilize in 2026 and beyond. In addition to the projects represented,
we are evaluating one priority anticipated development project that could commence active construction in
2H24 and may have initial delivery in 2025. Refer to the initial and stabilized occupancy years under “New
Class A/A+ development and redevelopment properties: current projects” in the Supplemental Information for
additional details.
(3)71% of the leased RSF of our value-creation projects was generated from our existing tenant base.
Strong balance sheet management
Key metrics as of or for the three months ended June 30, 2024
•$32.5 billion in total market capitalization.
•$20.1 billion in total equity capitalization, which ranks in the top 10% among all publicly traded
U.S. REITs.
2Q24
Target
Quarter
Trailing
4Q24
Annualized
12 Months
Annualized
Net debt and preferred stock to
Adjusted EBITDA
5.4x
5.6x
Less than or equal to 5.1x
Fixed-charge coverage ratio
4.5x
4.6x
Greater than or equal to 4.5x
Key capital events
•In July 2024, we executed an agreement with the lender group to amend and restate our
unsecured senior line of credit to, among other changes, extend the maturity date from
January 22, 2028 to January 22, 2030, including extension options that we control. We
expect that the amendment and restatement will become effective in September 2024 upon
the satisfaction of certain conditions.
•During 2Q24, we entered into new forward equity sales agreements aggregating $27.8 million
to sell 230 thousand shares of common stock under our ATM program at an average price of
$122.32 (before underwriting discounts). We expect to settle these forward equity sales
agreements in 2024. As of July 22, 2024, the remaining aggregate amount available under
our ATM program for future sales of common stock was $1.47 billion. 
Investments
•As of June 30, 2024:
•Our non-real estate investments aggregated $1.5 billion.
•Unrealized gains presented in our consolidated balance sheet were $159.8 million,
comprising gross unrealized gains and losses aggregating $284.2 million and
$124.4 million, respectively.
•Investment loss of $43.7 million for 2Q24 presented in our consolidated statement of
operations consisted of $33.4 million of realized gains, partially offset by $12.8 million of
impairment charges and $64.2 million of unrealized losses.
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Second Quarter Ended June 30, 2024 Financial and Operating Results (continued)
June 30, 2024
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Other key highlights
•In June 2024, Alexandria was added to the Health Care REITs industry under the Global
Industry Classification Standard (GICS®) by S&P Dow Jones Indices and MSCI, and to the
FTSE NAREIT Equity Health Care Index.
Key items included in net income attributable to Alexandria’s common stockholders:
2Q24
2Q23
2Q24
2Q23
1H24
1H23
1H24
1H23
(in millions, except per share
amounts)
Amount
Per Share –
Diluted
Amount
Per Share –
Diluted
Unrealized losses on non-real
estate investments
$(64.2)
$(77.9)
$(0.37)
$(0.46)
$(35.1)
$(143.8)
$(0.20)
$(0.84)
Gain on sales of real estate
—
214.8
—
1.26
0.4
214.8
—
1.26
Impairment of non-real estate
investments
(12.8)
(23.0)
(0.08)
(0.13)
(27.5)
(23.0)
(0.16)
(0.13)
Impairment of real estate
(30.8)
(168.6)
(0.18)
(0.99)
(30.8)
(168.6)
(0.18)
(0.99)
Total
$(107.8)
$(54.7)
$(0.63)
$(0.32)
$(93.0)
$(120.6)
$(0.54)
$(0.70)
Refer to “Funds from operations and funds from operations per share” in the Earnings Press Release for additional
details.
Subsequent event
•In July 2024, we executed an amendment to our existing ground lease agreement at the
Alexandria Technology Square® mega campus aggregating 1.2 million RSF in our Cambridge
submarket to extend the term by 24 years from January 1, 2065 to December 31, 2088. The
amendment requires that we prepay our entire rent obligation for the extended lease term
aggregating $270.0 million in two equal installments during the fourth quarter of 2024 and the
first quarter of 2025. This amount will be amortized on a straight-line basis over the remaining
lease term from July 2024 through December 2088, and the amended operating lease will
result in an incremental annual rent expense of approximately $3.6 million. Alexandria
Technology Square® is a foundational mega campus in the heart of the global life science
ecosystem in Cambridge and is the Greater Boston base of operations of key strategic long-
tenured tenants such as Novartis AG, GlaxoSmithKline plc, Massachusetts Institute of
Technology, and Mass General Brigham. Securing this ground lease through December 2088
significantly enhances the long-term value of our investment in this critical mega campus.
Industry and corporate responsibility leadership: catalyzing and leading the way for
positive change to benefit human health and society
•In June 2024, we released our 2023 Corporate Responsibility Report, which reinforces our
longstanding operational excellence across our differentiated Labspace® platform and
highlights:
•Our new target to reduce operational greenhouse gas (GHG) emissions intensity by
advancing our energy efficiency, electrification, alternative energy, and renewable electricity
initiatives. As an example of our renewable electricity initiatives, a recent long-term power
purchase agreement in our Greater Boston market is expected to enable us to meet 100%
of the electricity needs for Alexandria-paid accounts in this market with renewable energy.
•Our pioneering corporate responsibility pillars, which aim to address the most pressing
issues facing our nation, including the mental health and addiction crises.
Industry and corporate responsibility leadership (continued)
•In April 2024, Alexandria earned several 2024 regional TOBY (The Outstanding Building of
the Year) Awards from BOMA (Building Owners and Managers Association). The TOBY
Awards are the commercial real estate industry’s highest recognition honoring excellence in
commercial building management and operations.
•In the BOMA Mid-Atlantic region, 60 Binney Street on the Alexandria Center® at Kendall
Square mega campus won in the Life Science category and Building 1400 on the
Alexandria Center® at One Kendall Square mega campus won in the Renovated Building
category.
•In the BOMA Pacific Southwest region, the Alexandria Center® for Life Science – San
Carlos mega campus won in the Life Science category.
•In the BOMA Pacific Northwest region, 1165 Eastlake Avenue East on the Alexandria
Center® for Life Science – Eastlake mega campus won in the Life Science category.
•Additionally, our innovative energy district at the Alexandria Center® for Life Science – South
Lake Union mega campus received the Seattle 2030 District’s 2024 Vision Award for Energy,
and 6040 George Watts Hill Drive, Phase II, in Research Triangle was recognized as the Best
Development Project in the 2024 Triangle Commercial Real Estate Women’s (TCREW)
Champion Awards.
About Alexandria Real Estate Equities, Inc.
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class,
mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer
of the life science real estate niche with our founding in 1994, Alexandria is the preeminent and
longest-tenured owner, operator, and developer of collaborative life science mega campuses in
AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, San
Diego, Seattle, Maryland, Research Triangle, and New York City. As of June 30, 2024, Alexandria
has a total market capitalization of $32.5 billion and an asset base in North America that includes
42.1 million RSF of operating properties and 5.3 million RSF of Class A/A+ properties undergoing
construction and one committed near-term project expected to commence construction in the next
two years. Alexandria has a longstanding and proven track record of developing Class A/A+
properties clustered in life science mega campuses that provide our innovative tenants with highly
dynamic and collaborative environments that enhance their ability to successfully recruit and retain
world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also
provides strategic capital to transformative life science companies through our venture capital
platform. We believe our unique business model and diligent underwriting ensure a high-quality
and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental
income, higher returns, and greater long-term asset value. For additional information on
Alexandria, please visit www.are.com.
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Second Quarter Ended June 30, 2024 Financial and Operating Results (continued)
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
3
The following guidance for 2024 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2024. There can be no
assurance that actual results will not be materially higher or lower than these expectations. Also, refer to our discussion of “forward-looking statements” on page 7 of the Earnings Press Release for
additional details.
Changes to our guidance for 2024 key sources and uses of capital include a $150 million increase to the midpoint of our guidance range for dispositions, sales of partial interests, and common
equity primarily to fund the first $135 million installment of the ground lease prepayment at our Alexandria Technology Square® mega campus aggregating 1.2 million RSF in our Cambridge submarket
due in the fourth quarter of 2024 in connection with an amendment of our existing ground lease agreement to extend the term of the lease by 24 years from January 1, 2065 to December 31, 2088.
Refer to “Subsequent event” in the Earnings Press Release for additional information.
2024 Guidance Midpoint
Summary of Key Changes in Guidance
As of 7/22/24
As of 4/22/24
Summary of Key Changes in Sources and Uses of Capital
As of 7/22/24
As of 4/22/24
EPS, FFO per share, and FFO per share, as adjusted
See updates below
Dispositions, sales of partial interests, and common equity
$1,550
$1,400
Ground lease prepayment(1)
$135
$—
Projected 2024 Earnings per Share and Funds From Operations per Share Attributable to
Alexandria’s Common Stockholders – Diluted
As of 7/22/24
As of 4/22/24
Earnings per share(3)
$2.98 to $3.10
$3.60 to $3.72
Depreciation and amortization of real estate assets
5.95
5.95
Impairment of real estate – rental properties and land
0.01
—
Allocation to unvested restricted stock awards
(0.05)
(0.06)
Funds from operations per share(2)
$8.89 to $9.01
$9.49 to $9.61
Unrealized losses (gains) on non-real estate investments
0.20
(0.17)
Impairment of non-real estate investments
0.16
0.09
Impairment of real estate
0.17
—
Allocation to unvested restricted stock awards
(0.01)
—
Funds from operations per share, as adjusted(2)
$9.41 to $9.53
$9.41 to $9.53
Midpoint
$9.47
$9.47
Key Assumptions
Low
High
Occupancy percentage in North America as of December 31, 2024
94.6%
95.6%
Lease renewals and re-leasing of space:
Rental rate increases
11.0%
19.0%
Rental rate increases (cash basis)
5.0%
13.0%
Same property performance:
Net operating income increases
0.5%
2.5%
Net operating income increases (cash basis)
3.0%
5.0%
Straight-line rent revenue
$169
$184
General and administrative expenses
$181
$191
Capitalization of interest
$325
$355
Interest expense
$154
$184
Realized gains on non-real estate investments(6)
$95
$125
Key Credit Metric Targets(2)
Net debt and preferred stock to Adjusted EBITDA – 4Q24 annualized
Less than or equal to 5.1x
Fixed-charge coverage ratio – 4Q24 annualized
Greater than or equal to 4.5x
Certain
Completed
Items
Key Sources and Uses of Capital
Range
Midpoint
Sources of capital:
Incremental debt
$885
$885
$885
See below
Net cash provided by operating activities after
dividends
400
500
450
Dispositions, sales of partial interests, and
common equity(4) (refer to page 6)
1,050
2,050
1,550
(4)
Total sources of capital
$2,335
$3,435
$2,885
Uses of capital:
Construction
$1,950
$2,550
$2,250
Acquisitions (refer to page 5)
250
750
500
$202
Ground lease prepayment(1)
135
135
135
Total uses of capital
$2,335
$3,435
$2,885
Incremental debt (included above):
Issuance of unsecured senior notes payable(5)
$1,000
$1,000
$1,000
$1,000
(5)
Unsecured senior line of credit, commercial
paper, and other
(115)
(115)
(115)
Net incremental debt
$885
$885
$885
(1)Refer to “Subsequent event” in the Earnings Press Release for additional details.
(2)Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(3)Excludes unrealized gains or losses on non-real estate investments after June 30, 2024 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.
(4)We expect to continue pursuing our strategy to fund a significant portion of our capital requirements for the year ending December 31, 2024 with dispositions and sales of partial interests in properties not integral to our mega campus
strategy and are actively pursuing several dispositions and partial interest sale opportunities. As of July 22, 2024, we completed dispositions aggregating $77.2 million, have additional pending transactions subject to letters of intent or
purchase and sale agreement negotiations aggregating $806.7 million, and entered into new forward equity sales agreements aggregating $27.8 million, which, in aggregate, represents 59% of the $1.55 billion midpoint of our guidance
range.
(5)Represents $1.0 billion of unsecured senior notes payable issued in February 2024. Subject to market conditions, we may seek additional opportunities in 2024 to fund the repayment of our $600.0 million of 3.45% unsecured senior notes
payable due on April 30, 2025 through issuance of additional unsecured senior notes payable, which is not assumed in our current 2024 guidance.
(6)Represents realized gains and losses included in funds from operations per share – diluted, as adjusted, and excludes significant impairments realized on non-real estate investments, if any. Refer to “Investments” in the Supplemental
Information for additional details.
Guidance
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June 30, 2024
(Dollars in millions, except per share amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
4
Property
Submarket/Market
Date of
Purchase
Operating
Occupancy
Future
Development
RSF(1)
Purchase Price
Completed in 1Q24:
285, 299, 307, and 345 Dorchester Avenue (60% interest in consolidated JV)
Seaport Innovation District/Greater Boston
1/30/24
N/A
1,040,000
$
155,321
Other
39,490
194,811
Completed in 2Q24:
Other
7,000
201,811
Pending acquisitions subject to signed letters of intent or purchase and sale
agreements
47,600
$
249,411
2024 guidance range
$250,000 – $750,000
(1)We expect to provide total estimated costs and related yields for development and redevelopment projects in the future, subsequent to the commencement of construction.
Acquisitions
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June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
5
Property
Submarket/Market
Date of Sale
Interest Sold
RSF
Sales Price
Dispositions of 100% interest in properties not integral to our mega campus strategy
Completed in 1H24:
99 A Street(1)
Seaport Innovation District/Greater Boston
3/8/24
100%
235,000
$13,350
Other
3,863
17,213
Completed in July 2024:
Other(2)
60,000
77,213
Pending transactions subject to letters of intent or purchase and sale agreement negotiations
806,728
Additional targeted dispositions and sales of partial interests
TBD
$883,941
2024 guidance range for dispositions, sales of partial interests, and common equity
$1,050,000 – $2,050,000
(1)We completed the sale during the three months ended March 31, 2024 and recognized no gain or loss.
(2)The disposition completed in July 2024 was leased to a single tenant with a July 2024 lease expiration and had annual net operating income of $18.6 million based upon 2Q24 annualized. This asset was previously considered to be a
potential development project upon expiration of an in-place non-laboratory space lease in July 2024.
Dispositions and Sales of Partial Interests
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June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
6
We will host a conference call on Tuesday, July 23, 2024, at 3:00 p.m. Eastern Time (“ET”)/noon Pacific Time (“PT”), which is open to the general public, to discuss our financial and operating results for
the second quarter ended June 30, 2024. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 3:00 p.m. ET/noon PT and ask the operator to join the call for Alexandria Real
Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the “For Investors” section. A replay of the call will be available for a limited time from 5:00 p.m. ET/2:00 p.m. PT on Tuesday, July 23,
2024. The replay number is (877) 344-7529 or (412) 317-0088, and the access code is 8478776.
Additionally, a copy of this Earnings Press Release and Supplemental Information for the second quarter ended June 30, 2024 is available in the “For Investors” section of our website at www.are.com or
by following this link: https://www.are.com/fs/2024q2.pdf.
For any questions, please contact corporateinformation@are.com; Joel S. Marcus, executive chairman and founder; Peter M. Moglia, chief executive officer and chief investment officer; Marc E. Binda,
chief financial officer and treasurer; Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790; or Sara M. Kabakoff, senior vice president – chief content officer.
About the Company
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life
science real estate niche with our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science mega campuses in AAA innovation cluster locations,
including Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research Triangle, and New York City. As of June 30, 2024, Alexandria has a total market capitalization of $32.5 billion and an
asset base in North America that includes 42.1 million RSF of operating properties and 5.3 million RSF of Class A/A+ properties undergoing construction and one committed near-term project expected to commence
construction in the next two years. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science mega campuses that provide our innovative tenants with highly
dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic
capital to transformative life science companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in
higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value. For additional information on Alexandria, please visit www.are.com.
Forward-Looking Statements
This document includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Such forward-looking statements include, without limitation, statements regarding our 2024 earnings per share, 2024 funds from operations per share, 2024 funds from operations per share, as adjusted, net
operating income, and our projected sources and uses of capital. You can identify the forward-looking statements by their use of forward-looking words, such as “forecast,” “guidance,” “goals,” “projects,” “estimates,”
“anticipates,” “believes,” “expects,” “intends,” “may,” “plans,” “seeks,” “should,” “targets,” or “will,” or the negative of those words or similar words. These forward-looking statements are based on our current
expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts, as well as a number of assumptions concerning
future events. There can be no assurance that actual results will not be materially higher or lower than these expectations. These statements are subject to risks, uncertainties, assumptions, and other important
factors that could cause actual results to differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, without limitation, our failure to obtain
capital (debt, construction financing, and/or equity) or refinance debt maturities, lower than expected yields, increased interest rates and operating costs, adverse economic or real estate developments in our
markets, our failure to successfully place into service and lease any properties undergoing development or redevelopment and our existing space held for future development or redevelopment (including new
properties acquired for that purpose), our failure to successfully operate or lease acquired properties, decreased rental rates, increased vacancy rates or failure to renew or replace expiring leases, defaults on or
non-renewal of leases by tenants, adverse general and local economic conditions, an unfavorable capital market environment, decreased leasing activity or lease renewals, failure to obtain LEED and other healthy
building certifications and efficiencies, and other risks and uncertainties detailed in our filings with the Securities and Exchange Commission (“SEC”). Accordingly, you are cautioned not to place undue reliance on
such forward-looking statements. All forward-looking statements are made as of the date of this Earnings Press Release and Supplemental Information, and unless otherwise stated, we assume no obligation to
update this information and expressly disclaim any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. For more discussion relating to
risks and uncertainties that could cause actual results to differ materially from those anticipated in our forward-looking statements, and risks to our business in general, please refer to our SEC filings, including our
most recent annual report on Form 10-K and any subsequent quarterly reports on Form 10-Q.
This document is not an offer to sell or a solicitation to buy securities of Alexandria Real Estate Equities, Inc. Any offers to sell or solicitations to buy our securities shall be made only by means of a
prospectus approved for that purpose. Unless otherwise indicated, the “Company,” “Alexandria,” “ARE,” “we,” “us,” and “our” refer to Alexandria Real Estate Equities, Inc. and our consolidated subsidiaries.
Alexandria®, Lighthouse Design® logo, Building the Future of Life-Changing Innovation®, That’s What’s in Our DNA®, Labspace®, At the Vanguard and Heart of the Life Science Ecosystem™, Alexandria Center®,
Alexandria Technology Square®, Alexandria Technology Center®, and Alexandria Innovation Center® are copyrights and trademarks of Alexandria Real Estate Equities, Inc. All other company names, trademarks,
and logos referenced herein are the property of their respective owners.
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Earnings Call Information and About the Company
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
7
 
Three Months Ended
Six Months Ended
 
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Revenues:
 
 
 
 
 
 
 
Income from rentals
$755,162
$755,551
$742,637
$707,531
$704,339
$1,510,713
$1,392,288
Other income
11,572
13,557
14,579
6,257
9,561
25,129
22,407
Total revenues
766,734
769,108
757,216
713,788
713,900
1,535,842
1,414,695
Expenses:
Rental operations
217,254
218,314
222,726
217,687
211,834
435,568
418,767
General and administrative
44,629
47,055
59,289
45,987
45,882
91,684
94,078
Interest
45,789
40,840
31,967
11,411
17,072
86,629
30,826
Depreciation and amortization
290,720
287,554
285,246
269,370
273,555
578,274
538,857
Impairment of real estate
30,763
—
271,890
20,649
168,575
30,763
168,575
Total expenses
629,155
593,763
871,118
565,104
716,918
1,222,918
1,251,103
Equity in earnings of unconsolidated real estate joint ventures
130
155
363
242
181
285
375
Investment (loss) income
(43,660)
43,284
8,654
(80,672)
(78,268)
(376)
(123,379)
Gain on sales of real estate
—
392
62,227
—
214,810
392
214,810
Net income (loss)
94,049
219,176
(42,658)
68,254
133,705
313,225
255,398
Net income attributable to noncontrolling interests
(47,347)
(48,631)
(45,771)
(43,985)
(43,768)
(95,978)
(87,599)
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s
stockholders
46,702
170,545
(88,429)
24,269
89,937
217,247
167,799
Net income attributable to unvested restricted stock awards
(3,785)
(3,659)
(3,498)
(2,414)
(2,677)
(7,444)
(5,283)
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s
common stockholders
$42,917
$166,886
$(91,927)
$21,855
$87,260
$209,803
$162,516
Net income (loss) per share attributable to Alexandria Real Estate Equities,
Inc.’s common stockholders:
Basic
$0.25
$0.97
$(0.54)
$0.13
$0.51
$1.22
$0.95
Diluted
$0.25
$0.97
$(0.54)
$0.13
$0.51
$1.22
$0.95
Weighted-average shares of common stock outstanding:
Basic
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Diluted
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Dividends declared per share of common stock
$1.30
$1.27
$1.27
$1.24
$1.24
$2.57
$2.45
Consolidated Statements of Operations
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June 30, 2024
(Dollars in thousands, except per share amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
8
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Assets
 
 
 
 
Investments in real estate
$32,673,839
$32,323,138
$31,633,511
$31,712,731
$31,178,054
Investments in unconsolidated real estate joint ventures
40,535
40,636
37,780
37,695
37,801
Cash and cash equivalents
561,021
722,176
618,190
532,390
924,370
Restricted cash
4,832
9,519
42,581
35,321
35,920
Tenant receivables
6,822
7,469
8,211
6,897
6,951
Deferred rent
1,190,336
1,138,936
1,050,319
1,012,666
984,366
Deferred leasing costs
519,629
520,616
509,398
512,216
520,610
Investments
1,494,348
1,511,588
1,449,518
1,431,766
1,495,994
Other assets
1,356,503
1,424,968
1,421,894
1,501,611
1,475,191
Total assets
$37,847,865
$37,699,046
$36,771,402
$36,783,293
$36,659,257
Liabilities, Noncontrolling Interests, and Equity
Secured notes payable
$134,942
$130,050
$119,662
$109,110
$91,939
Unsecured senior notes payable
12,089,561
12,087,113
11,096,028
11,093,725
11,091,424
Unsecured senior line of credit and commercial paper
199,552
—
99,952
—
—
Accounts payable, accrued expenses, and other liabilities
2,529,535
2,503,831
2,610,943
2,653,126
2,494,087
Dividends payable
227,408
222,134
221,824
214,450
214,555
Total liabilities
15,180,998
14,943,128
14,148,409
14,070,411
13,892,005
Commitments and contingencies
Redeemable noncontrolling interests
16,440
16,620
16,480
51,658
52,628
Alexandria Real Estate Equities, Inc.’s stockholders’ equity:
Common stock
1,720
1,720
1,719
1,710
1,709
Additional paid-in capital
18,284,611
18,434,690
18,485,352
18,651,185
18,812,318
Accumulated other comprehensive loss
(27,710)
(23,815)
(15,896)
(24,984)
(16,589)
Alexandria Real Estate Equities, Inc.’s stockholders’ equity
18,258,621
18,412,595
18,471,175
18,627,911
18,797,438
Noncontrolling interests
4,391,806
4,326,703
4,135,338
4,033,313
3,917,186
Total equity
22,650,427
22,739,298
22,606,513
22,661,224
22,714,624
Total liabilities, noncontrolling interests, and equity
$37,847,865
$37,699,046
$36,771,402
$36,783,293
$36,659,257
Consolidated Balance Sheets
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June 30, 2024
(In thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
9
The following table presents a reconciliation of net income (loss) attributable to Alexandria’s common stockholders, the most directly comparable financial measure presented in
accordance with U.S. generally accepted accounting principles (“GAAP”), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations
attributable to Alexandria’s common stockholders – diluted, and funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted, for the periods below:
 
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Net income (loss) attributable to Alexandria’s common stockholders – basic
and diluted
$42,917
$166,886
$(91,927)
$21,855
$87,260
$209,803
$162,516
Depreciation and amortization of real estate assets
288,118
284,950
281,939
266,440
270,026
573,068
532,150
Noncontrolling share of depreciation and amortization from consolidated real
estate JVs
(31,364)
(30,904)
(30,137)
(28,814)
(28,220)
(62,268)
(56,398)
Our share of depreciation and amortization from unconsolidated real estate JVs
1,068
1,034
965
910
855
2,102
1,714
Gain on sales of real estate
—
(392)
(62,227)
—
(214,810)
(392)
(214,810)
Impairment of real estate – rental properties and land
2,182
—
263,982
19,844
166,602
2,182
166,602
Allocation to unvested restricted stock awards
(1,305)
(3,469)
(2,268)
(838)
(872)
(4,736)
(2,220)
Funds from operations attributable to Alexandria’s common stockholders –
diluted(1)
301,616
418,105
360,327
279,397
280,841
719,759
589,554
Unrealized losses (gains) on non-real estate investments
64,238
(29,158)
(19,479)
77,202
77,897
35,080
143,752
Impairment of non-real estate investments
12,788
(2)
14,698
23,094
28,503
22,953
27,486
22,953
Impairment of real estate
28,581
(3)
—
7,908
805
1,973
28,581
1,973
Acceleration of stock compensation expense due to executive officer resignations
—
—
18,436
1,859
—
—
—
Allocation to unvested restricted stock awards
(1,738)
247
(472)
(1,330)
(1,285)
(1,528)
(2,164)
Funds from operations attributable to Alexandria’s common stockholders –
diluted, as adjusted
$405,485
$403,892
$389,814
$386,436
$382,379
$809,378
$756,068
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Calculated in accordance with standards established by the Nareit Board of Governors.
(2)Primarily related to two non-real estate investments in privately held entities that do not report NAV.
(3)Primarily related to two potential acquisitions in our Greater Boston market, which aggregated 1.4 million of future development RSF. We initially expected to close these acquisitions after 2024 for an aggregate purchase price of
$366.8 million. Our intent for each site included the demolition of existing buildings upon expiration of the existing in-place leases and the development of life science properties. During the three months ended June 30, 2024, we
decided to no longer proceed with these acquisitions as a result of the current macroeconomic environment that negatively impacted the financial outlooks for these projects, and recognized this impairment charge.
Funds From Operations and Funds From Operations per Share
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June 30, 2024
(In thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
10
The following table presents a reconciliation of net income (loss) per share attributable to Alexandria’s common stockholders, the most directly comparable financial measure presented in
accordance with GAAP, including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations per share attributable to Alexandria’s common
stockholders – diluted, and funds from operations per share attributable to Alexandria’s common stockholders – diluted, as adjusted, for the periods below. Per share amounts may not add due to
rounding.
Three Months Ended
Six Months Ended
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Net income (loss) per share attributable to Alexandria’s common stockholders –
diluted
$0.25
$0.97
$(0.54)
$0.13
$0.51
$1.22
$0.95
Depreciation and amortization of real estate assets
1.50
1.48
1.48
1.40
1.42
2.98
2.80
Gain on sales of real estate
—
—
(0.36)
—
(1.26)
—
(1.26)
Impairment of real estate – rental properties and land
0.01
—
1.54
0.12
0.98
0.01
0.98
Allocation to unvested restricted stock awards
(0.01)
(0.02)
(0.01)
(0.01)
(0.01)
(0.02)
(0.02)
Funds from operations per share attributable to Alexandria’s common
stockholders – diluted
1.75
2.43
2.11
1.64
1.64
4.19
3.45
Unrealized losses (gains) on non-real estate investments
0.37
(0.17)
(0.11)
0.45
0.46
0.20
0.84
Impairment of non-real estate investments
0.08
0.09
0.13
0.17
0.13
0.16
0.13
Impairment of real estate
0.17
—
0.05
—
0.02
0.17
0.02
Acceleration of stock compensation expense due to executive officer resignations
—
—
0.11
0.01
—
—
—
Allocation to unvested restricted stock awards
(0.01)
—
(0.01)
(0.01)
(0.01)
(0.01)
(0.01)
Funds from operations per share attributable to Alexandria’s common
stockholders – diluted, as adjusted
$2.36
$2.35
$2.28
$2.26
$2.24
$4.71
$4.43
Weighted-average shares of common stock outstanding – diluted
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
Funds From Operations and Funds From Operations per Share (continued)
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June 30, 2024
(In thousands, except per share amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
11
SUPPLEMENTAL
INFORMATION
Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500® company, is a
best-in-class, mission-driven life science REIT making a positive and lasting impact on the
world. As the pioneer of the life science real estate niche with our founding in 1994,
Alexandria is the preeminent and longest-tenured owner, operator, and developer of
collaborative life science mega campuses in AAA innovation cluster locations, including
Greater Boston, the San Francisco Bay Area, San Diego, Seattle, Maryland, Research
Triangle, and New York City. As of June 30, 2024, Alexandria has a total market
capitalization of $32.5 billion and an asset base in North America that includes 42.1 million
RSF of operating properties and 5.3 million RSF of Class A/A+ properties undergoing
construction and one committed near-term project expected to commence construction in
the next two years. Alexandria has a longstanding and proven track record of developing
Class A/A+ properties clustered in life science mega campuses that provide our innovative
tenants with highly dynamic and collaborative environments that enhance their ability to
successfully recruit and retain world-class talent and inspire productivity, efficiency,
creativity, and success. Alexandria also provides strategic capital to transformative life
science companies through our venture capital platform. We believe our unique business
model and diligent underwriting ensure a high-quality and diverse tenant base that results
in higher occupancy levels, longer lease terms, higher rental income, higher returns, and
greater long-term asset value. For additional information on Alexandria, please visit
www.are.com.
Tenant base
Alexandria is known for our high-quality and diverse tenant base, with 53% of our 
annual rental revenue being generated from tenants that are investment-grade rated or
publicly traded large cap companies. The quality, diversity, breadth, and depth of our
significant relationships with our tenants provide Alexandria with high-quality and stable
cash flows. Alexandria’s underwriting team and long-term industry relationships positively
distinguish us from all other publicly traded REITs and real estate companies.
Executive and senior management team
Alexandria’s executive and senior management team has unique experience and
expertise in creating, owning, and operating highly dynamic and collaborative life science
mega campuses in key cluster locations to catalyze innovation. From design to
development to the management of our high-quality, sustainable real estate, as well as our
ongoing cultivation of collaborative environments with unique amenities and events, the
Alexandria team has a best-in-class reputation of excellence in life science real estate.
Alexandria’s highly experienced management team includes regional market directors with
leading reputations and longstanding relationships within the life science communities in
their respective innovation clusters. We believe that our experience, expertise, reputation,
and key relationships in the real estate and life science industries provide Alexandria
significant competitive advantages in attracting new business opportunities.
Alexandria’s executive and senior management team consists of
64 individuals, averaging 23 years of real estate experience,
including 13 years with Alexandria. Our executive management
team alone averages 19 years with Alexandria.
EXECUTIVE MANAGEMENT TEAM
Joel S. Marcus
Peter M. Moglia
Executive Chairman &
Founder
Chief Executive Officer &
Chief Investment Officer
Daniel J. Ryan
Hunter L. Kass
Co-President & Regional Market
Director – San Diego
Co-President & Regional Market
Director – Greater Boston
Marc E. Binda
Vincent R. Ciruzzi
Chief Financial Officer &
Treasurer
Chief Development Officer
Lawrence J. Diamond
Joseph Hakman
Co-Chief Operating Officer & Regional
Market Director – Maryland
Co-Chief Operating Officer &
Chief Strategic Transactions Officer
Hart Cole
Jackie B. Clem
Executive Vice President – Capital
Markets/Strategic Operations &
Co-Regional Market Director – Seattle
General Counsel & Secretary
Gary D. Dean
Andres R. Gavinet
Executive Vice President –
Real Estate Legal Affairs
Chief Accounting Officer
Onn C. Lee
Kristina A. Fukuzaki-Carlson
Executive Vice President –
Accounting
Executive Vice President –
Business Operations
Madeleine T. Alsbrook
Executive Vice President –
Talent Management
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Company Profile
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
13
Corporate Headquarters
 
New York Stock Exchange Trading Symbol
 
Information Requests
26 North Euclid Avenue
 
Common stock: ARE
 
Phone:
(626) 578-0777
Pasadena, California 91101
 
 
Email:
corporateinformation@are.com
www.are.com
 
 
Website:
investor.are.com
Equity Research Coverage
Alexandria is currently covered by the following research analysts. This list may be incomplete and is subject to change as firms initiate or discontinue coverage of our company.
Please note that any opinions, estimates, or forecasts regarding our historical or predicted performance made by these analysts are theirs alone and do not represent opinions, estimates, or
forecasts of Alexandria or our management. Alexandria does not by our reference or distribution of the information below imply our endorsement of or concurrence with any opinions,
estimates, or forecasts of these analysts. Interested persons may obtain copies of analysts’ reports on their own as we do not distribute these reports. Several of these firms may, from time to
time, own our stock and/or hold other long or short positions in our stock and may provide compensated services to us.
BNP Paribas Exane
Citigroup Global Markets Inc.
Jefferies Research Services, LLC
RBC Capital Markets
Nate Crossett / Monir Koummal
Nicholas Joseph / Michael Griffin
Peter Abramowitz / Ahmed Mehri
Michael Carroll / Aditi Balachandran
(646) 342-1588 / (646) 342-1554
(212) 816-1909 / (212) 816-5871
(212) 336-7241 / (212) 778-8456
(440) 715-2649 / (212) 428-6200
BofA Securities
Citizens JMP Securities, LLC
J.P. Morgan Securities LLC
Robert W. Baird & Co. Incorporated
Jeff Spector / Joshua Dennerlein
Aaron Hecht
Anthony Paolone / Ray Zhong
Wesley Golladay / Nicholas Thillman
(646) 855-1363 / (646) 855-1681
(415) 835-3963
(212) 622-6682 / (212) 622-5411
(216) 737-7510 / (414) 298-5053
BTIG, LLC
Evercore ISI
Mizuho Securities USA LLC
Wedbush Securities
Tom Catherwood / John Nickodemus
Steve Sakwa / James Kammert
Vikram Malhotra / Georgi Dinkov
Richard Anderson / Jay Kornreich
(212) 738-6140 / (212) 738-6050
(212) 446-9462 / (312) 705-4233
(212) 282-3827 / (617) 352-1721
(212) 931-7001 / (212) 938-9942
CFRA
Green Street
Michael Elliott
Dylan Burzinski
(646) 517-5742
(949) 640-8780
Fixed Income Research Coverage
Rating Agencies
Barclays Capital Inc.
J.P. Morgan Securities LLC
Moody’s Investors Service
 
S&P Global Ratings
Srinjoy Banerjee / Japheth Otieno
Mark Streeter
(212) 553-0376
 
Alan Zigman
(212) 526-3521 / (212) 526-6961
(212) 834-5086
 
(416) 507-2556
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Investor Information
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
14
 
Three Months Ended (unless stated otherwise)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Selected financial data from consolidated financial statements and related information
Rental revenues
$576,835
(1)
$581,400
$561,428
$526,352
$537,889
Tenant recoveries
$178,327
$174,151
$181,209
$181,179
$166,450
General and administrative expenses
$44,629
$47,055
$59,289
$45,987
$45,882
General and administrative expenses as a percentage of net operating income –
trailing 12 months
9.2%
9.5%
9.8%
9.3%
9.7%
Operating margin
72%
72%
71%
70%
70%
Adjusted EBITDA margin
72%
72%
69%
69%
70%
Adjusted EBITDA – quarter annualized
$2,216,144
$2,206,428
$2,094,988
$1,971,440
$1,986,760
Adjusted EBITDA – trailing 12 months
$2,122,250
$2,064,904
$1,997,518
$1,935,505
$1,895,336
Net debt at end of period
$11,940,144
$11,569,666
$10,731,200
$10,713,620
$10,303,736
Net debt and preferred stock to Adjusted EBITDA – quarter annualized
5.4x
5.2x
5.1x
5.4x
5.2x
Net debt and preferred stock to Adjusted EBITDA – trailing 12 months
5.6x
5.6x
5.4x
5.5x
5.4x
Total debt and preferred stock at end of period
$12,424,055
$12,217,163
$11,315,642
$11,202,835
$11,183,363
Gross assets at end of period
$43,305,279
$42,915,903
$41,756,421
$41,639,729
$41,306,090
Total debt and preferred stock to gross assets at end of period
29%
28%
27%
27%
27%
Fixed-charge coverage ratio – quarter annualized
4.5x
4.7x
4.5x
4.8x
4.7x
Fixed-charge coverage ratio – trailing 12 months
4.6x
4.7x
4.7x
4.9x
4.9x
Unencumbered net operating income as a percentage of total net operating income
99.1%
99.3%
99.8%
99.8%
99.8%
Closing stock price at end of period
$116.97
$128.91
$126.77
$100.10
$113.49
Common shares outstanding (in thousands) at end of period
172,018
172,008
171,911
170,997
170,870
Total equity capitalization at end of period
$20,120,907
$22,173,547
$21,793,107
$17,116,784
$19,392,011
Total market capitalization at end of period
$32,544,962
$34,390,710
$33,108,749
$28,319,619
$30,575,374
Dividend per share – quarter/annualized
$1.30/$5.20
$1.27/$5.08
$1.27/$5.08
$1.24/$4.96
$1.24/$4.96
Dividend payout ratio for the quarter
55%
54%
56%
55%
55%
Dividend yield – annualized
4.4%
3.9%
4.0%
5.0%
4.4%
Amounts related to operating leases:
Operating lease liabilities at end of period
$379,223
$381,578
$382,883
$384,958
$386,545
Rent expense
$9,412
$8,683
$8,964
$8,317
$8,518
Capitalized interest
$81,039
$81,840
$89,115
$96,119
$91,674
Average real estate basis capitalized during the period
$7,936,612
$8,163,289
$9,116,700
$9,872,650
$9,580,655
Weighted-average interest rate for capitalization of interest during the period
3.96%
3.92%
3.92%
3.77%
3.77%
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)  Decline in rental revenues from 1Q24 includes the temporary loss of revenues from 308,446 RSF at 311 Arsenal Street, which was placed into redevelopment during 1H24.
Financial and Asset Base Highlights
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June 30, 2024
(Dollars in thousands, except per share amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
15
 
Three Months Ended (unless stated otherwise)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Amounts included in funds from operations and non-revenue-enhancing capital expenditures
Straight-line rent revenue
$48,338
$48,251
$41,586
$29,805
$29,335
Amortization of acquired below-market leases
$22,515
$30,340
$23,684
$23,222
$24,789
Straight-line rent expense on ground leases
$341
$358
$366
$372
$373
Stock compensation expense
$14,507
$17,125
$34,592
$16,288
$15,492
Amortization of loan fees
$4,146
$4,142
$4,059
$4,059
$3,729
Amortization of debt discounts
$(328)
$(318)
$(309)
$(306)
$(304)
Non-revenue-enhancing capital expenditures:
Building improvements
$4,210
$4,293
$4,167
$4,510
$4,376
Tenant improvements and leasing commissions
$15,724
$21,144
$12,155
$7,560
$38,587
Funds from operations attributable to noncontrolling interests
$78,711
$79,535
$75,908
$72,799
$71,988
Operating statistics and related information (at end of period)
Number of properties – North America
408
410
411
419
414
RSF – North America (including development and redevelopment projects under construction)
47,085,993
47,206,639
47,228,485
47,089,826
46,408,793
Total square feet – North America
74,103,404
74,069,321
73,532,305
75,057,289
74,854,150
Annual rental revenue per occupied RSF – North America
$56.87
$56.86
$56.08
$53.34
$53.09
Occupancy of operating properties – North America
94.6%
94.6%
94.6%
93.7%
93.6%
Occupancy of operating and redevelopment properties – North America
89.9%
90.2%
90.2%
89.4%
89.2%
Weighted-average remaining lease term (in years)
7.4
7.5
7.4
7.0
7.2
Total leasing activity – RSF
1,114,001
1,142,857
889,737
867,582
1,325,326
Lease renewals and re-leasing of space – change in average new rental rates over expiring rates:
Rental rate increases
7.4%
33.0%
9.2%
28.8%
16.6%
Rental rate increases (cash basis)
3.7%
19.0%
5.5%
19.7%
8.3%
RSF (included in total leasing activity above)
589,650
994,770
477,142
396,334
1,052,872
Top 20 tenants:
Annual rental revenue
$805,751
$802,605
$769,066
$655,990
$629,362
Annual rental revenue from investment-grade or publicly traded large cap tenants
92%
92%
92%
91%
90%
Weighted-average remaining lease term (in years)
9.4
9.7
9.6
8.9
9.4
Same property – percentage change over comparable quarter from prior year:
Net operating income increases
1.5%
1.0%
0.7%
3.1%
3.0%
Net operating income increases (cash basis)
3.9%
4.2%
0.8%
4.6%
4.9%
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
Financial and Asset Base Highlights (continued)
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June 30, 2024
(Dollars in thousands, except annual rental revenue per occupied RSF amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
16
Stable Cash Flows From Our High-Quality and Diverse Mix of Approximately 800 Tenants
Investment-Grade or Publicly Traded
Large Cap Tenants
92%
of ARE’s Top 20 Tenant
Annual Rental Revenue
53%
Percentage of ARE’s Annual Rental Revenue
of ARE’s
Annual Rental Revenue
chart-570ddbbd83414db1b80.gif
Life Science
Product,
Service, and
Device
Multinational
Pharmaceutical
Public
Biotechnology –
Approved or
Marketed
Product
Public
Biotechnology –
Preclinical or
Clinical Stage
Private
Biotechnology
Other(2)
Investment-Grade or
Large Cap Tech
Future Change
in Use(1)
Biomedical and
Government
Institutions
As of June 30, 2024. Annual rental revenue represents amounts in effect as of June 30, 2024. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details, including our methodology of calculating annual rental
revenue from unconsolidated real estate joint ventures.
(1)Represents annual rental revenue generated from space that is currently targeted for a future change in use to laboratory space, including 1.0% of annual rental revenue that is generated from covered land play projects for future
development opportunities. The weighted-average remaining term of these leases is 2.9 years.
(2)Represents the percentage of our annual rental revenue generated by “Other” tenants, which comprise technology, professional services, finance, telecommunications, and construction/real estate companies, and (by less than 1.0% of our
annual rental revenue) retail-related tenants.
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High-Quality and Diverse Client Base
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
17
Long-Duration and Stable Cash Flows From
High-Quality and Diverse Tenants
Sustained Strength in Tenant Collections(1)
99.9%
99.7%
2Q24
July 2024
Long-Duration Lease Terms
9.4 Years
7.4 Years
Top 20 Tenants
All Tenants
Weighted-Average Remaining Term(2)
(1)Represents the portion of total receivables billed for each period collected as of July 22, 2024.
(2)Based on annual rental revenue in effect as of June 30, 2024.
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High-Quality and Diverse Client Base (continued)
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
18
Solid Historical Occupancy of 96% Over Past 10 Years(1) From
Historically Strong Demand for Our Class A/A+ Properties in AAA Locations
Mega Campuses
Occupancy Across Key Locations
Percentage of ARE’s
Annual Rental Revenue
chart-50b5e41aff8b4005a98.gif
(2)
chart-30a6a65b1b1147f5942.gif
74%
Mega
Campuses
26%
Non-Mega
Campuses
As of June 30, 2024. Annual rental revenue represents amounts in effect as of June 30, 2024. Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents average occupancy of operating properties as of each December 31 from 2015 through 2023 and as of June 30, 2024.
(2)Refer to footnote 1 under “Summary of occupancy” in “Summary of properties and occupancy” in the Supplemental Information for additional details.
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Occupancy
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
19
Same Property
Net Operating Income Growth
Rental Rate Growth:
Renewed/Re-Leased Space
Margins(1)
Favorable Lease Structure(2)
Operating
Adjusted EBITDA
Strategic Lease Structure by Owner and Operator of Collaborative
Life Science Mega Campuses
72%
72%
Increasing cash flows
Percentage of leases containing
annual rent escalations
96%
Stable cash flows
Weighted-Average Lease Term
of Executed Leases(3)
Percentage of triple
net leases
94%
8.8 Years
Lower capex burden
Percentage of leases providing for the
recapture of capital expenditures
93%
chart-5af93a0d00924bf8be4.gif
chart-47145209dafc43d5be2.gif
chart-7d2644f6e0b94a1c9ac.gif
chart-afe9d0d7f73c402fb20.gif
Refer to “Same property performance” and “Definitions and reconciliations” in the Supplemental Information for additional details. “Definitions and reconciliations” contains the definition of “Net operating income” and its reconciliation
from the most directly comparable financial measure presented in accordance with GAAP.
(1)For the three months ended June 30, 2024.
(2)Percentages calculated based on our annual rental revenue in effect as of June 30, 2024.
(3)Represents the weighted-average lease term of executed leases for the 10-year period from December 31, 2015 through June 30, 2024.
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Key Operating Metrics
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
20
June 30, 2024
June 30, 2024
Same Property Financial Data
Three Months
Ended
Six Months
Ended
Same Property Statistical Data
Three Months
Ended
Six Months
Ended
Percentage change over comparable period from prior year:
Number of same properties
350
346
Net operating income increase
1.5%
1.1%
Rentable square feet
35,626,897
34,775,838
Net operating income increase (cash basis)
3.9%
3.7%
Occupancy – current-period average
94.6%
94.2%
Operating margin
70%
70%
Occupancy – same-period prior-year average
94.4%
94.6%
 
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
$ Change
% Change
2024
2023
$ Change
% Change
Income from rentals:
Same properties
$464,917
$454,603
$10,314
2.3%
$910,423
$893,008
$17,415
2.0%
Non-same properties
111,918
83,286
28,632
34.4
247,812
163,183
84,629
51.9
Rental revenues
576,835
537,889
38,946
7.2
1,158,235
1,056,191
102,044
9.7
Same properties
156,945
153,802
3,143
2.0
311,894
303,702
8,192
2.7
Non-same properties
21,382
12,648
8,734
69.1
40,584
32,395
8,189
25.3
Tenant recoveries
178,327
166,450
11,877
7.1
352,478
336,097
16,381
4.9
Income from rentals
755,162
704,339
50,823
7.2
1,510,713
1,392,288
118,425
8.5
Same properties
377
300
77
25.7
715
737
(22)
(3.0)
Non-same properties
11,195
9,261
1,934
20.9
24,414
21,670
2,744
12.7
Other income
11,572
9,561
2,011
21.0
25,129
22,407
2,722
12.1
Same properties
622,239
608,705
13,534
2.2
1,223,032
1,197,447
25,585
2.1
Non-same properties
144,495
105,195
39,300
37.4
312,810
217,248
95,562
44.0
Total revenues
766,734
713,900
52,834
7.4
1,535,842
1,414,695
121,147
8.6
Same properties
185,721
178,544
7,177
4.0
366,985
350,672
16,313
4.7
Non-same properties
31,533
33,290
(1,757)
(5.3)
68,583
68,095
488
0.7
Rental operations
217,254
211,834
5,420
2.6
435,568
418,767
16,801
4.0
Same properties
436,518
430,161
6,357
1.5
856,047
846,775
9,272
1.1
Non-same properties
112,962
71,905
41,057
57.1
244,227
149,153
95,074
63.7
Net operating income
$549,480
$502,066
$47,414
9.4%
$1,100,274
$995,928
$104,346
10.5%
Net operating income – same properties
$436,518
$430,161
$6,357
1.5%
$856,047
$846,775
$9,272
1.1%
Straight-line rent revenue
(17,856)
(26,981)
9,125
(33.8)
(32,773)
(51,793)
19,020
(36.7)
Amortization of acquired below-market leases
(15,910)
(15,619)
(291)
1.9
(30,910)
(30,758)
(152)
0.5
Net operating income – same properties (cash basis)
$402,752
$387,561
$15,191
3.9%
$792,364
$764,224
$28,140
3.7%
Refer to “Same property comparisons” under “Definitions and reconciliations” in the Supplemental Information for additional details, including a reconciliation of same properties to total properties. “Definitions and reconciliations” also
contains definitions of “Tenant recoveries” and “Net operating income” and their respective reconciliations from the most directly comparable financial measures presented in accordance with GAAP.
Same Property Performance
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June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
21
Three Months Ended
Six Months Ended
Year Ended
June 30, 2024
June 30, 2024
December 31, 2023
Including
Straight-Line Rent
Cash Basis
Including
Straight-Line Rent
Cash Basis
Including
Straight-Line Rent
Cash Basis
Leasing activity:
Renewed/re-leased space(1)
 
 
Rental rate changes
7.4%
(2)
3.7%
(2)
26.2%
15.0%
29.4%
15.8%
New rates
$46.56
$47.92
$69.43
$68.20
$52.35
$50.82
Expiring rates
$43.34
$46.23
$55.02
$59.32
$40.46
$43.87
RSF
589,650
1,584,420
3,046,386
Tenant improvements/leasing commissions
$31.83
$25.32
$26.09
Weighted-average lease term
4.4 years
8.0 years
8.7 years
Developed/redeveloped/previously vacant space leased(3)
New rates
$67.96
$65.59
$68.85
$66.73
$65.66
$59.74
RSF
524,351
672,438
1,259,686
Weighted-average lease term
7.4 years
7.2 years
13.8 years
Leasing activity summary (totals):
New rates
$57.55
$56.99
$69.26
$67.78
$56.09
$53.33
RSF
1,114,001
2,256,858
4,306,072
Weighted-average lease term
6.6 years
7.7 years
11.3 years
Lease expirations(1)
Expiring rates
$46.19
$48.02
$52.27
$55.24
$43.84
$45.20
RSF
888,415
2,301,346
5,027,773
Leasing activity includes 100% of results for properties in North America in which we have an investment.
(1)Excludes month-to-month leases aggregating 129,549 RSF and 86,092 RSF as of June 30, 2024 and December 31, 2023, respectively. During the trailing twelve months ended June 30, 2024, we granted free rent
concessions averaging 0.8 months per annum.
(2)Includes one renewal aggregating 34,611 RSF in our Greater Stanford submarket. Excluding this renewal, rental rate changes for 2Q24 were 13.6% and 9.1% (cash basis). Rental rate changes can experience volatility from
quarter to quarter based on the volume and mix of leases executed. Refer to “Guidance” in the Earnings Press Release for rental rate changes expected from leases executed for the year ending December 31, 2024.
(3)Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” in the Supplemental Information for additional details, including total project costs.
Leasing Activity
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June 30, 2024
(Dollars per RSF)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
22
Year
RSF
Percentage of
Occupied RSF
Annual Rental Revenue
(per RSF)(1)
Percentage of
Annual Rental Revenue
2024
(2)
1,629,725
4.1%
$52.61
3.9%
2025
3,969,159
10.1%
$52.32
9.4%
2026
2,741,258
6.9%
$52.81
6.6%
2027
3,155,424
8.0%
$52.84
7.6%
2028
4,697,787
11.9%
$51.91
11.1%
2029
2,519,629
6.4%
$51.26
5.9%
2030
2,732,244
6.9%
$46.39
5.8%
2031
3,655,986
9.3%
$54.89
9.1%
2032
1,078,558
2.7%
$59.67
2.9%
2033
2,872,541
7.3%
$51.57
6.7%
Thereafter
10,398,273
26.4%
$65.96
31.0%
Market
2024 Contractual Lease Expirations (in RSF)
Annual
Rental
Revenue
(per RSF)(1)
2025 Contractual Lease Expirations (in RSF)
Annual
Rental
Revenue
(per RSF)(1)
Leased
Negotiating/
Anticipating
Targeted for Future
Development/Redevelopment(3)
Remaining
Expiring
Leases(4)
Total(2)
Leased
Negotiating/
Anticipating
Targeted for
Future
Development/
Redevelopment(3)
Remaining
Expiring
Leases(5)
Total
Committed
Near-Term/
Priority
Anticipated
Future
Greater Boston
14,075
57,179
—
104,500
210,588
386,342
$78.66
44,332
38,705
25,312
890,639
(6)
998,988
$78.18
San Francisco Bay Area
—
58,517
107,250
—
252,300
418,067
55.48
35,797
83,980
—
491,082
610,859
71.91
San Diego
27,119
—
—
226,144
17,408
270,671
29.33
22,324
28,854
269,048
257,832
578,058
27.46
Seattle
18,107
—
—
—
111,263
129,370
20.78
—
14,058
50,552
215,294
279,904
31.76
Maryland
—
—
—
—
10,919
10,919
5.62
35,055
—
—
185,357
220,412
28.41
Research Triangle
—
10,478
—
—
18,439
28,917
37.70
—
—
—
320,957
320,957
51.34
New York City
—
5,896
—
—
355,792
(7)
361,688
53.71
—
—
—
67,215
67,215
106.25
Texas
—
—
—
—
—
—
—
—
357,136
198,972
247,246
803,354
36.27
Canada
13,321
—
—
—
—
13,321
26.58
—
—
—
88,412
88,412
20.31
Non-cluster/other markets
—
—
—
—
10,430
10,430
57.02
—
—
—
1,000
1,000
49.20
Total
72,622
132,070
107,250
330,644
987,139
1,629,725
$52.61
137,508
522,733
543,884
2,765,034
3,969,159
$52.32
Percentage of expiring
leases
4%
8%
7%
20%
61%
100%
3%
13%
14%
70%
100%
(1)Represents amounts in effect as of June 30, 2024.
(2)Excludes month-to-month leases aggregating 129,549 RSF as of June 30, 2024.
(3)Primarily represents assets that were recently acquired for future value-creation opportunities, for which we expect, subject to market conditions and leasing, to commence first-time conversion from non-laboratory space to laboratory
space, or to commence future ground-up development. As of June 30, 2024, annual rental revenue from these leases expiring in 2024 and 2025 is $42.98 per RSF and $32.71 per RSF, respectively. The weighted-average expiration date
of these leases expiring in 2024 and 2025 is September 29, 2024 and January 12, 2025, respectively. Refer to “Investments in real estate” under “Definitions and reconciliations” in the Supplemental Information for additional details,
including value-creation square feet currently included in rental properties.
(4)Excluding the expiration described in footnote 7, the largest remaining contractual lease expiration in 2024 is 97,702 RSF in our Mission Bay submarket, where we are working to retain the current tenant.
(5)Key remaining expiring leases in 2025 include 600,477 RSF in three submarkets with a weighted-average expiration date of February 1, 2025 and annual rental revenue as of June 30, 2024 aggregating approximately $37 million
comprised of the following: (i) 248,700 RSF at our Alexandria Technology Square® mega campus in our Cambridge submarket, of which 171,945 RSF is expected to be repositioned from single-tenancy to multi-tenancy, and we are
evaluating options to reposition the remaining 76,755 RSF; (ii) 247,246 RSF of industrial and R&D space in our Austin submarket for which we are evaluating options to market for re-lease or reposition the space; and (iii) 104,531 RSF in
our Research Triangle market that is currently being marketed for re-lease. We expect downtime on these spaces to range from 12 to 24 months on a weighted average basis.
(6)Includes 816,048 RSF of contractual lease expirations in our Cambridge/Inner Suburbs submarket. Refer to footnote 5 for additional details.
(7)Includes 349,947 RSF at 219 East 42nd Street that was classified as held for sale as of June 30, 2024 and was sold in July 2024.
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Contractual Lease Expirations
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
23
92% of Top 20 Tenant Annual Rental Revenue Is From Investment-Grade
or Publicly Traded Large Cap Tenants(1)
Tenant
Remaining Lease
Term(1) (in years)
Aggregate
RSF
Annual Rental
Revenue(1)
Percentage of
Annual Rental
Revenue(1)
Investment-Grade
Credit Ratings
Average
Market Cap(1)
(in billions)
Moody’s
S&P
1
Moderna, Inc.
12.9
1,385,536
$127,122
5.7%
—
—
$40.5
2
Eli Lilly and Company
8.6
1,134,349
92,931
4.2
A2
A+
$620.0
3
Bristol-Myers Squibb Company
6.6
999,379
76,363
3.4
A2
A+
$107.4
4
Takeda Pharmaceutical Company Limited
10.9
549,759
47,899
2.2
Baa2
BBB+
$45.4
5
Roche
5.8
770,279
45,888
2.1
Aa2
AA
$224.0
6
Illumina, Inc.
6.6
955,669
41,588
1.9
Baa3
BBB
$21.4
7
Alphabet Inc.
3.0
724,223
39,155
1.8
Aa2
AA+
$1,805.5
8
2seventy bio, Inc.(2)
9.2
312,805
33,543
1.5
—
—
$0.2
9
Novartis AG
4.1
450,563
30,969
1.4
A1
AA-
$227.3
10
Harvard University
6.3
343,858
28,872
1.3
Aaa
AAA
$—
11
Cloud Software Group, Inc.
2.7
(3)
292,013
28,537
1.3
—
—
$—
12
United States Government
6.1
429,359
28,491
1.3
Aaa
AA+
$—
13
Uber Technologies, Inc.
58.3
(4)
1,009,188
27,765
1.3
—
—
$123.5
14
AstraZeneca PLC
5.3
450,848
27,156
1.2
A3
A
$213.0
15
Pfizer Inc.
0.7
(5)
504,716
23,730
1.1
A1
A+
$171.0
16
Sanofi
6.5
267,278
21,444
1.0
A1
AA
$126.0
17
Merck & Co., Inc.
9.0
337,703
21,401
1.0
A1
A+
$293.8
18
Amgen Inc.
8.5
428,227
21,314
1.0
Baa1
—
$148.0
19
New York University
7.6
218,983
21,056
0.9
Aa2
AA-
$—
20
Massachusetts Institute of Technology
5.0
246,725
20,527
0.9
Aaa
AAA
$—
Total/weighted-average
9.4
(4)
11,811,460
$805,751
36.5%
Annual rental revenue and RSF include 100% of each property managed by us in North America. Refer to “Annual rental revenue” and “Investment-grade or publicly traded large cap tenants” under “Definitions and reconciliations” in the
Supplemental Information for additional details, including our methodology of calculating annual rental revenue from unconsolidated real estate joint ventures and average market capitalization, respectively.
(1)Based on annual rental revenue in effect as of June 30, 2024.
(2)As of March 31, 2024, 2seventy bio, Inc. held $181.4 million of cash, cash equivalents, and marketable securities. In March 2024, Regeneron Pharmaceuticals, Inc., a publicly traded biotechnology company with investment-grade credit
ratings of Baa1 and BBB+ assigned by Moody’s and S&P, respectively, entered into a sublease for approximately 195,000 RSF, or 69.6% of our annual rental revenue generated from 2seventy bio as of June 30, 2024. Additionally, 90.2% of
the annual rental revenue generated by 2seventy bio is guaranteed by another related public biotechnology company.
(3)Consists of one lease at a property acquired in 2022 with future development and redevelopment opportunities. This lease with Cloud Software Group, Inc. (formerly known as TIBCO Software, Inc.) was in place when we acquired the
property.
(4)Includes (i) ground leases for land at 1455 and 1515 Third Street (two buildings aggregating 422,980 RSF) and (ii) leases at 1655 and 1725 Third Street (two buildings aggregating 586,208 RSF) in our Mission Bay submarket owned by our
unconsolidated real estate joint venture in which we have an ownership interest of 10%. Annual rental revenue is presented using 100% of the annual rental revenue from our consolidated properties and our share of annual rental revenue
from our unconsolidated real estate joint ventures. Refer to footnote 1 for additional details. Excluding these ground leases, the weighted-average remaining lease term for our top 20 tenants was 8.0 years as of June 30, 2024.
(5)Primarily relates to one office building in our New York City submarket aggregating 349,947 RSF with a contractual lease expiration in July 2024, which was classified as held for sale as of June 30, 2024 and sold in July 2024.
Top 20 Tenants
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June 30, 2024
(Dollars in thousands, except average market cap amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
24
Summary of properties
Market
RSF
Number of
Properties
Annual Rental Revenue
Operating
Development
Redevelopment
Total
% of Total
Total
% of Total
Per RSF
Greater Boston
10,751,016
764,036
1,638,878
(1)
13,153,930
28%
73
$848,799
38%
$83.84
San Francisco Bay Area
7,863,964
498,142
282,054
8,644,160
18
66
449,633
20
65.52
San Diego
7,757,132
1,186,104
—
8,943,236
19
88
328,872
15
44.60
Seattle
3,188,135
31,270
34,306
3,253,711
7
44
138,136
6
45.73
Maryland
3,804,438
292,946
—
4,097,384
9
51
135,978
6
37.45
Research Triangle
3,923,169
—
—
3,923,169
8
40
123,315
6
32.27
New York City
922,477
—
—
922,477
2
4
72,885
3
92.89
Texas
1,845,159
—
73,298
1,918,457
4
15
57,830
3
32.83
Canada
933,660
—
139,311
1,072,971
2
12
20,353
1
22.98
Non-cluster/other markets
347,806
—
—
347,806
1
10
15,180
1
57.70
Properties held for sale
808,692
—
—
808,692
2
5
25,994
1
N/A
North America
42,145,648
2,772,498
2,167,847
47,085,993
100%
408
$2,216,975
100%
$56.87
4,940,345
(1)Primarily includes our active redevelopment projects aggregating 716,604 RSF at 40, 50, and 60 Sylvan Road and 840 Winter Street located on the Alexandria Center® for Life Science – Waltham mega campus,
which are 43% leased/negotiating on a combined basis. This mega campus project is expected to capture demand in our Route 128 submarket.
Summary of occupancy
 
Operating Properties
Operating and Redevelopment Properties
Market
6/30/24
3/31/24
6/30/23
6/30/24
3/31/24
6/30/23
Greater Boston
94.2%
94.5%
92.5%
81.7%
83.3%
83.2%
San Francisco Bay Area
94.0
94.4
95.5
90.7
91.2
91.9
San Diego
95.1
95.2
92.8
95.1
95.2
92.8
Seattle
94.7
94.9
95.1
93.7
93.9
89.5
Maryland
96.5
95.4
96.2
96.5
95.4
94.9
Research Triangle
97.4
97.8
94.3
97.4
97.8
94.3
New York City
85.1
(1)
84.4
88.9
85.1
84.4
88.9
Texas
95.5
95.1
95.1
91.8
91.5
91.0
Subtotal
94.7
94.9
93.8
90.2
90.6
89.8
Canada
94.9
91.8
87.3
82.5
77.8
69.2
Non-cluster/other markets
75.6
75.4
81.3
75.6
75.4
81.3
North America
94.6%
94.6%
93.6%
89.9%
90.2%
89.2%
(1)The Alexandria Center® for Life Science – New York City mega campus is 95.5% occupied as of June 30, 2024. Occupancy percentage in our New York City market reflects vacancy at the Alexandria Center® for Life
Science – Long Island City property, which was 41.7% occupied as of June 30, 2024.
Summary of Properties and Occupancy
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June 30, 2024
(Dollars in thousands, except per RSF amounts)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
25
Mega Campuses Encompass 74% of Our Annual Rental Revenue
Market / Submarket / Address
RSF
Number of
Properties
Annual
Rental
Revenue
Occupancy Percentage
Operating
Operating and
Redevelopment
Operating
Development
Redevelopment
Total
Greater Boston
Cambridge/Inner Suburbs
Mega Campus: Alexandria Center® at Kendall Square
2,856,042
—
—
2,856,042
11
$279,665
99.7%
99.7%
50(1), 60(1), 75/125(1), 100(1), and 225(1) Binney Street, 140 and 215 First Street,
150 Second Street, 300 Third Street(1), 11 Hurley Street, and 100 Edwin H.
Land Boulevard
Mega Campus: Alexandria Center® at One Kendall Square
1,370,401
—
—
1,370,401
12
143,806
85.2
85.2
One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800,
and 2000), 325 and 399 Binney Street, and One Hampshire Street(2)
Mega Campus: Alexandria Technology Square®
1,185,284
—
—
1,185,284
7
116,345
100.0
100.0
100, 200, 300, 400, 500, 600, and 700 Technology Square
Mega Campus: The Arsenal on the Charles
702,623
109,481
308,446
1,120,550
13
56,034
100.0
69.5
  311, 321, and 343 Arsenal Street, 300, 400, and 500 North Beacon Street,
    1, 2, 3, and 4 Kingsbury Avenue, and 100, 200, and 400 Talcott Avenue
Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street
517,442
—
—
517,442
5
24,993
96.7
96.7
99 Coolidge Avenue(1)
116,414
204,395
—
320,809
1
15,265
100.0
100.0
Cambridge/Inner Suburbs
6,748,206
313,876
308,446
7,370,528
49
636,108
96.6
92.4
Fenway
Mega Campus: Alexandria Center® for Life Science – Fenway
1,218,257
450,160
159,959
1,828,376
3
93,450
89.3
78.9
401 and 421(1) Park Drive and 201 Brookline Avenue(1)
Seaport Innovation District
5 and 15(1) Necco Street
441,396
—
—
441,396
2
39,570
75.7
75.7
Seaport Innovation District
441,396
—
—
441,396
2
39,570
75.7
75.7
Route 128
Mega Campus: Alexandria Center® for Life Science – Waltham
326,110
—
716,604
1,042,714
5
23,198
100.0
31.3
40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street
Mega Campus: One Moderna Way
721,988
—
—
721,988
4
31,135
100.0
100.0
19, 225, and 235 Presidential Way
585,226
—
—
585,226
3
14,474
100.0
100.0
Route 128
1,633,324
—
716,604
2,349,928
12
68,807
100.0
69.3
Other
709,833
—
453,869
1,163,702
7
10,864
77.2
47.1
Greater Boston
10,751,016
764,036
1,638,878
13,153,930
73
$848,799
94.2%
81.7%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
(2)Subject to market conditions and leasing, we may consider options to redevelop our One Hampshire Street property into new Class A+ laboratory space.
Property Listing
footerlogov2a.jpg
June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
26
Market / Submarket / Address
RSF
Number of
Properties
Annual
Rental
Revenue
Occupancy Percentage
Operating
Operating and
Redevelopment
Operating
Development
Redevelopment
Total
San Francisco Bay Area
Mission Bay
Mega Campus: Alexandria Center® for Science and Technology –
Mission Bay(1)
2,009,054
212,796
—
2,221,850
10
$91,820
95.2%
95.2%
1455(2), 1515(2), 1655, and 1725 Third Street, 409 and 499 Illinois Street, 1450,
1500, and 1700 Owens Street, and 455 Mission Bay Boulevard South
Mission Bay
2,009,054
212,796
—
2,221,850
10
91,820
95.2
95.2
South San Francisco
Mega Campus: Alexandria Technology Center® – Gateway(1)
1,386,971
—
282,054
1,669,025
12
72,964
82.5
68.5
600(2), 601, 611, 630(2), 650(2), 651, 681, 685, 701, 751, 901(2), and 951(2)
Gateway Boulevard
Mega Campus: Alexandria Center® for Advanced Technologies – South
San Francisco
919,703
—
—
919,703
5
57,788
100.0
100.0
213(1), 249, 259, 269, and 279 East Grand Avenue
Alexandria Center® for Life Science – South San Francisco
503,388
—
—
503,388
3
32,134
92.2
92.2
201 Haskins Way and 400 and 450 East Jamie Court
Mega Campus: Alexandria Center® for Advanced Technologies – Tanforan
445,232
—
—
445,232
2
4,020
100.0
100.0
1122 and 1150 El Camino Real
Alexandria Center® for Life Science – Millbrae(1)
—
285,346
—
285,346
1
—
N/A
N/A
230 Harriet Tubman Way
500 Forbes Boulevard(1)
155,685
—
—
155,685
1
10,680
100.0
100.0
South San Francisco
3,410,979
285,346
282,054
3,978,379
24
177,586
91.7
84.7
Greater Stanford
Mega Campus: Alexandria Center® for Life Science – San Carlos
739,157
—
—
739,157
9
49,891
97.4
97.4
825, 835, 960, and 1501-1599 Industrial Road
Alexandria Stanford Life Science District
703,843
—
—
703,843
9
65,462
97.4
97.4
3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and
3330 Hillview Avenue
3412, 3420, 3440, 3450, and 3460 Hillview Avenue
340,103
—
—
340,103
5
23,610
82.9
82.9
3875 Fabian Way
228,000
—
—
228,000
1
9,402
100.0
100.0
2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road
193,688
—
—
193,688
3
18,032
100.0
100.0
2100, 2200, and 2400 Geng Road
78,501
—
—
78,501
3
4,803
100.0
100.0
2425 Garcia Avenue/2400/2450 Bayshore Parkway
99,208
—
—
99,208
1
4,257
100.0
100.0
3350 West Bayshore Road
61,431
—
—
61,431
1
4,770
100.0
100.0
Greater Stanford
2,443,931
—
—
2,443,931
32
180,227
96.1
96.1
San Francisco Bay Area
7,863,964
498,142
282,054
8,644,160
66
$449,633
94.0%
90.7%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
(2)We own 100% of this property.
Property Listing (continued)
footerlogov2a.jpg
June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
27
Market / Submarket / Address
RSF
Number of
Properties
Annual
Rental
Revenue
Occupancy Percentage
Operating
Operating and
Redevelopment
Operating
Development
Redevelopment
Total
San Diego
Torrey Pines
Mega Campus: One Alexandria Square
748,573
334,996
—
1,083,569
10
$47,330
99.9%
99.9%
3115 and 3215(1) Merryfield Row, 3010, 3013, and 3033 Science Park Road,
10935, 10945, and 10955 Alexandria Way, 10975 North Torrey Pines Road,
and 10996 Torreyana Road, and 3545 Cray Court
ARE Torrey Ridge
296,290
—
—
296,290
3
14,045
85.8
85.8
10578, 10618, and 10628 Science Center Drive
ARE Nautilus
218,459
—
—
218,459
4
12,743
86.3
86.3
3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics
Court
Torrey Pines
1,263,322
334,996
—
1,598,318
17
74,118
94.3
94.3
University Town Center
Mega Campus: Campus Point by Alexandria(1)
1,666,590
598,029
—
2,264,619
13
78,609
99.0
99.0
9880(2), 10010(2), 10140(2), 10210, 10260, 10290, and 10300 Campus Point
Drive and 4135, 4155, 4161, 4224, 4242, and 4275(2) Campus Point Court
Mega Campus: 5200 Illumina Way(1)
792,687
—
—
792,687
6
29,978
100.0
100.0
ARE Esplanade
243,084
—
—
243,084
4
10,407
74.6
74.6
4755, 4757, and 4767 Nexus Center Drive and 4796 Executive Drive
9625 Towne Centre Drive(1)
163,648
—
—
163,648
1
6,520
100.0
100.0
Costa Verde by Alexandria
8,730
—
—
8,730
2
879
100.0
100.0
8505 Costa Verde Boulevard and 4260 Nobel Drive
University Town Center
2,874,739
598,029
—
3,472,768
26
126,393
97.3
97.3
Sorrento Mesa
Mega Campus: SD Tech by Alexandria(1)
1,066,607
253,079
—
1,319,686
15
41,227
87.1
87.1
9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road,
5505 Morehouse Drive(2), and 10055, 10065, 10075, 10121(2), and 10151(2)
Barnes Canyon Road
Mega Campus: Sequence District by Alexandria
801,575
—
—
801,575
7
28,766
100.0
100.0
6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive
Pacific Technology Park(1)
544,352
—
—
544,352
5
8,936
89.1
89.1
9389, 9393, 9401, 9455, and 9477 Waples Street
Summers Ridge Science Park(1)
316,531
—
—
316,531
4
11,521
100.0
100.0
9965, 9975, 9985, and 9995 Summers Ridge Road
Scripps Science Park by Alexandria
144,113
—
—
144,113
1
11,379
100.0
100.0
10102 Hoyt Park Drive
ARE Portola
101,857
—
—
101,857
3
4,022
100.0
100.0
6175, 6225, and 6275 Nancy Ridge Drive
5810/5820 Nancy Ridge Drive
83,354
—
—
83,354
1
4,581
100.0
100.0
9877 Waples Street
63,774
—
—
63,774
1
—
100.0
100.0
5871 Oberlin Drive
33,842
—
—
33,842
1
1,909
100.0
100.0
Sorrento Mesa
3,156,005
253,079
—
3,409,084
38
$112,341
93.5%
93.5%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
(2)We own 100% of this property.
Property Listing (continued)
footerlogov2a.jpg
June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
28
Market / Submarket / Address
RSF
Number of
Properties
Annual
Rental
Revenue
Occupancy Percentage
Operating
Operating and
Redevelopment
Operating
Development
Redevelopment
Total
San Diego (continued)
Sorrento Valley
3911, 3931, and 3985 Sorrento Valley Boulevard
108,812
—
—
108,812
3
$3,782
68.5%
68.5%
11045 and 11055 Roselle Street
43,233
—
—
43,233
2
2,273
100.0
100.0
Sorrento Valley
152,045
—
—
152,045
5
6,055
89.3
89.3
Other
311,021
—
—
311,021
2
9,965
100.0
100.0
San Diego
7,757,132
1,186,104
—
8,943,236
88
328,872
95.1
95.1
Seattle
Lake Union
Mega Campus: Alexandria Center® for Life Science – Eastlake
1,218,025
31,270
—
1,249,295
9
81,129
95.7
95.7
1150, 1165, 1201(1), 1208(1), 1551, and 1616 Eastlake Avenue East, 188 and
199(1) East Blaine Street, and 1600 Fairview Avenue East
Mega Campus: Alexandria Center® for Life Science – South Lake Union
290,754
—
—
290,754
1
17,856
100.0
100.0
400 Dexter Avenue North(1)
219 Terry Avenue North
33,242
—
—
33,242
1
614
92.7
92.7
Lake Union
1,542,021
31,270
—
1,573,291
11
99,599
96.5
96.5
SoDo
830 4th Avenue South
42,380
—
—
42,380
1
698
32.1
32.1
Elliott Bay
410 West Harrison Street and 410 Elliott Avenue West
36,848
—
—
36,848
2
675
54.6
54.6
Bothell
Mega Campus: Alexandria Center® for Advanced Technologies – Canyon
Park
1,061,184
—
—
1,061,184
22
23,933
94.7
94.7
22121 and 22125 17th Avenue Southeast, 22021, 22025, 22026, 22030,
22118, and 22122 20th Avenue Southeast, 22333, 22422, 22515, 22522,
22722, and 22745 29th Drive Southeast, 21540, 22213 and 22309 30th
Drive Southeast, and 1629, 1631, 1725, 1916, and 1930 220th Street
Southeast
Alexandria Center® for Advanced Technologies – Monte Villa Parkway
429,143
—
34,306
463,449
6
12,415
97.5
90.3
3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway
Bothell
1,490,327
—
34,306
1,524,633
28
36,348
95.5
93.3
Other
76,559
—
—
76,559
2
816
100.0
100.0
Seattle
3,188,135
31,270
34,306
3,253,711
44
$138,136
94.7%
93.7%
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
Property Listing (continued)
footerlogov2a.jpg
June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
29
Market / Submarket / Address
RSF
Number of
Properties
Annual
Rental
Revenue
Occupancy Percentage
Operating
Operating and
Redevelopment
Operating
Development
Redevelopment
Total
Maryland
Rockville
Mega Campus: Alexandria Center® for Life Science – Shady Grove
1,399,020
292,946
—
1,691,966
20
$63,991
99.1%
99.1%
9601, 9603, 9605, 9704, 9708, 9712, 9714, 9800, 9804, 9808, 9900, and 9950
Medical Center Drive, 14920 and 15010 Broschart Road, 9920 Belward
Campus Drive, and 9810 and 9820 Darnestown Road
1330 Piccard Drive
131,508
—
—
131,508
1
4,210
100.0
100.0
1405 and 1450(1) Research Boulevard
114,849
—
—
114,849
2
3,029
73.3
73.3
1500 and 1550 East Gude Drive
91,359
—
—
91,359
2
1,844
100.0
100.0
5 Research Place
63,852
—
—
63,852
1
3,073
100.0
100.0
5 Research Court
51,520
—
—
51,520
1
1,779
100.0
100.0
12301 Parklawn Drive
49,185
—
—
49,185
1
1,598
100.0
100.0
Rockville
1,901,293
292,946
—
2,194,239
28
79,524
97.8
97.8
Gaithersburg
Alexandria Technology Center® – Gaithersburg I
619,241
—
—
619,241
9
19,483
93.1
93.1
9, 25, 35, 45, 50, and 55 West Watkins Mill Road and 910, 930, and 940
Clopper Road
Alexandria Technology Center® – Gaithersburg II
486,301
—
—
486,301
7
18,788
100.0
100.0
700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield
Road
20400 Century Boulevard
81,006
—
—
81,006
1
3,340
100.0
100.0
401 Professional Drive
63,154
—
—
63,154
1
1,931
100.0
100.0
950 Wind River Lane
50,000
—
—
50,000
1
1,234
100.0
100.0
620 Professional Drive
27,950
—
—
27,950
1
1,207
100.0
100.0
Gaithersburg
1,327,652
—
—
1,327,652
20
45,983
96.8
96.8
Beltsville
8000/9000/10000 Virginia Manor Road
191,884
—
—
191,884
1
3,021
100.0
100.0
101 West Dickman Street(1)
135,423
—
—
135,423
1
1,323
64.4
64.4
Beltsville
327,307
—
—
327,307
2
4,344
85.3
85.3
Northern Virginia
14225 Newbrook Drive
248,186
—
—
248,186
1
6,127
100.0
100.0
Maryland
3,804,438
292,946
—
4,097,384
51
135,978
96.5
96.5
Research Triangle
Research Triangle
Mega Campus: Alexandria Center® for Life Science – Durham
2,155,252
—
—
2,155,252
15
52,407
97.4
97.4
6, 8, 10, 12, 14, 40, 42, and 65 Moore Drive, 21, 25, 27, 29, and 31
Alexandria Way, 2400 Ellis Road, and 14 TW Alexander Drive
Mega Campus: Alexandria Center® for Sustainable Technologies
364,493
—
—
364,493
7
12,201
93.7
93.7
104, 108, 110, 112, and 114 TW Alexander Drive and 5 and 7 Triangle Drive
Alexandria Center® for AgTech
342,928
—
—
342,928
2
$16,862
98.2%
98.2%
5 and 9 Laboratory Drive
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
Property Listing (continued)
footerlogov2a.jpg
June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
30
Market / Submarket / Address
RSF
Number of
Properties
Annual
Rental
Revenue
Occupancy Percentage
Operating
Operating and
Redevelopment
Operating
Development
Redevelopment
Total
Research Triangle (continued)
Research Triangle (continued)
Mega Campus: Alexandria Center® for Advanced Technologies – Research
Triangle
344,539
—
—
344,539
4
$16,343
99.8%
99.8%
6, 8, 10, and 12 Davis Drive
Alexandria Technology Center® – Alston
155,533
—
—
155,533
3
3,895
90.9
90.9
100, 800, and 801 Capitola Drive
6040 George Watts Hill Drive
149,585
—
—
149,585
2
7,375
100.0
100.0
Alexandria Innovation Center® – Research Triangle
136,692
—
—
136,692
3
4,260
100.0
100.0
7010, 7020, and 7030 Kit Creek Road
2525 East NC Highway 54
82,996
—
—
82,996
1
3,651
100.0
100.0
407 Davis Drive
81,956
—
—
81,956
1
3,323
100.0
100.0
601 Keystone Park Drive
77,595
—
—
77,595
1
2,137
100.0
100.0
6101 Quadrangle Drive
31,600
—
—
31,600
1
861
100.0
100.0
Research Triangle
3,923,169
—
—
3,923,169
40
123,315
97.4
97.4
New York City
New York City
Mega Campus: Alexandria Center® for Life Science – New York City
743,377
—
—
743,377
3
67,607
95.5
95.5
430 and 450 East 29th Street
Alexandria Center® for Life Science – Long Island City
179,100
—
—
179,100
1
5,278
41.7
41.7
30-02 48th Avenue
New York City
922,477
—
—
922,477
4
72,885
85.1
85.1
Texas
Austin
Mega Campus: Intersection Campus
1,525,359
—
—
1,525,359
12
43,028
99.2
99.2
507 East Howard Lane, 13011 McCallen Pass, 13813 and 13929 Center Lake
Drive, and 12535, 12545, 12555, and 12565 Riata Vista Circle
1001 Trinity Street and 1020 Red River Street
198,972
—
—
198,972
2
11,630
100.0
100.0
Austin
1,724,331
—
—
1,724,331
14
54,658
99.3
99.3
Greater Houston
Alexandria Center® for Advanced Technologies at The Woodlands
120,828
—
73,298
194,126
1
3,172
41.5
25.8
8800 Technology Forest Place
Texas
1,845,159
—
73,298
1,918,457
15
57,830
95.5
91.8
Canada
933,660
—
139,311
1,072,971
12
20,353
94.9
82.5
Non-cluster/other markets
347,806
—
—
347,806
10
15,180
75.6
75.6
North America, excluding properties held for sale
41,336,956
2,772,498
2,167,847
46,277,301
403
2,190,981
94.6%
89.9%
Properties held for sale
808,692
—
—
808,692
5
25,994
59.9%
59.9%
Total – North America
42,145,648
2,772,498
2,167,847
47,085,993
408
$2,216,975
Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and “Definitions and reconciliations” in the Supplemental Information for additional details.
Property Listing (continued)
footerlogov2a.jpg
June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
31
pipelinev7.jpg
Refer to “Net operating income” under “Definitions and reconciliations” in the Supplemental Information for additional details, including its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.
(1)Our share of incremental annual net operating income from development and redevelopment projects expected to be placed into service primarily commencing from 3Q24 through 1Q28 is projected to be $380 million.
(2)Represents expected incremental annual net operating income to be placed into service from deliveries of projects undergoing construction and one committed near-term project expected to commence construction in the next two years.
(3)Includes 1.5 million RSF that is expected to stabilize through 2025 and is 87% leased, and partial deliveries through 4Q25 from projects expected to stabilize in 2026 and beyond. In addition to the projects represented, we are evaluating
one priority anticipated development project that could commence active construction in 2H24 and may have initial delivery in 2025. Refer to the initial and stabilized occupancy years under “New Class A/A+ development and
redevelopment properties: current projects” in the Supplemental Information for details.
Investments in Real Estate
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June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
32
Investments in real estate
Development and Redevelopment
Active and Near-Term Construction
Future Opportunities Subject to
Market Conditions and Leasing
Operating
Under
Construction
61% Leased/
Negotiating
Committed
Near Term
51% Leased/
Negotiating(1)
Priority
Anticipated
Future
Subtotal
Total
Square footage
Operating
41,336,956
—
—
—
—
—
41,336,956
New Class A/A+ development and redevelopment properties
—
4,940,345
492,570
2,670,922
27,261,766
35,365,603
35,365,603
Value-creation square feet currently included in rental
properties(2)
—
—
(159,884)
(309,148)
(2,938,815)
(3,407,847)
(3,407,847)
Total square footage, excluding properties held for sale
41,336,956
4,940,345
332,686
2,361,774
24,322,951
31,957,756
73,294,712
Properties held for sale
808,692
—
—
—
—
—
808,692
Total square footage
42,145,648
4,940,345
332,686
2,361,774
24,322,951
31,957,756
74,103,404
Investments in real estate
Gross book value as of June 30, 2024(3)
$29,178,679
$3,888,714
$58,751
$762,507
$4,242,602
$8,952,574
$38,131,253
(1)Represents one committed near-term project expected to commence construction during the next two years after June 30, 2024.
(2)Refer to “Investments in real estate” under “Definitions and reconciliations” in the Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(3)Balances exclude accumulated depreciation and our share of the cost basis associated with our properties held by our unconsolidated real estate joint ventures, which is classified as investments in unconsolidated real estate joint
ventures in our consolidated balance sheets. Refer to “Investments in real estate” under “Definitions and reconciliations” in the Supplemental Information for additional details.
Investments in Real Estate
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June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
33
Incremental Annual Net Operating Income Generated From 1H24 Deliveries
Aggregated $42 Million, Including $16 Million in 2Q24
500 North Beacon Street and
4 Kingsbury Avenue(1)
1150 Eastlake Avenue East
9810 Darnestown Road
9808 Medical Center Drive
Greater Boston/
Cambridge/Inner Suburbs
Seattle/Lake Union
Maryland/Rockville
Maryland/Rockville
138,537 RSF
280,361 RSF
195,435 RSF
52,115 RSF
100% Occupancy
100% Occupancy
100% Occupancy
100% Occupancy
arsenalphaseii.jpg
a1150eastlake.jpg
darnestown9810.jpg
mcd9808.jpg
 
Property/Market/Submarket
Our
Ownership
Interest
RSF Placed in Service
Occupancy
Percentage(3)
Total Project
Unlevered Yields
2Q24
Delivery
Date(2)
Prior to
1/1/24
1Q24
2Q24
Total
Initial
Stabilized
Initial
Stabilized
(Cash Basis)
RSF
Investment
Development projects
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs
N/A
75.0%
43,568
72,846
—
116,414
100%
320,809
$468,000
7.1%
7.0%
500 North Beacon Street and 4 Kingsbury Avenue/Greater
Boston/Cambridge/Inner Suburbs
5/10/24
100%
—
100,624
37,913
138,537
100%
248,018
427,000
6.2
5.5
1150 Eastlake Avenue East/Seattle/Lake Union
4/13/24
100%
278,282
—
2,079
280,361
100%
311,631
443,000
6.6
6.7
9810 Darnestown Road/Maryland/Rockville
4/1/24
100%
—
—
195,435
195,435
100%
195,435
135,000
7.1
6.2
9808 Medical Center Drive/Maryland/Rockville
6/18/24
100%
26,460
—
25,655
52,115
100%
95,061
113,000
5.5
5.5
Redevelopment projects
651 Gateway Boulevard/San Francisco Bay Area/South San
Francisco
N/A
50.0%
—
44,652
—
44,652
100%
326,706
487,000
5.0
5.1
Alexandria Center® for Advanced Technologies – Monte Villa
Parkway/Seattle/Bothell
N/A
100%
65,086
115,598
—
180,684
100%
460,934
229,000
6.3
6.2
Canada
4/17/24
100%
44,862
—
9,725
23,900
78,487
100%
250,790
113,000
6.4
6.3
Weighted average/total
4/21/24
458,258
343,445
284,982
1,086,685
2,209,384
$2,415,000
6.2%
6.1%
Refer to “New Class A/A+ development and redevelopment properties: current projects” in the Supplemental Information for details on the square footage in service and under construction, if applicable.
(1)Image represents 500 North Beacon Street on the Arsenal on the Charles mega campus.
(2)Represents the average delivery date for deliveries that occurred during the current quarter, weighted by annual rental revenue.
(3)Occupancy relates to total operating RSF placed in service as of the most recent delivery.
New Class A/A+ Development and Redevelopment Properties: Recent Deliveries
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(Dollars in thousands)
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34
99 Coolidge Avenue
500 North Beacon Street and
4 Kingsbury Avenue(1)
311 Arsenal Street
201 Brookline Avenue
401 Park Drive
Greater Boston/
Cambridge/Inner Suburbs
Greater Boston/
Cambridge/Inner Suburbs
Greater Boston/
Cambridge/Inner Suburbs
Greater Boston/Fenway
Greater Boston/Fenway
204,395 RSF
109,481 RSF
308,446 RSF
58,149 RSF
159,959 RSF
36% Leased
92% Leased/Negotiating
21% Leased
99% Leased/Negotiating
14% Leased
coolidge.jpg
arsenalphaseii.jpg
arsenal311.jpg
brookline201.jpg
parkdrive401v2.jpg
421 Park Drive
40, 50, and 60 Sylvan Road(2)
840 Winter Street
1450 Owens Street(3)
651 Gateway Boulevard
Greater Boston/Fenway
Greater Boston/Route 128
Greater Boston/Route 128
San Francisco Bay Area/
Mission Bay
San Francisco Bay Area/
South San Francisco
392,011 RSF
576,924 RSF
139,680 RSF
212,796 RSF
282,054 RSF
13% Leased
29% Leased
100% Leased
—% Leased/Negotiating
21% Leased
parkdrive421.jpg
sylvan60.jpg
winter840.jpg
owens1450.jpg
gateway651.jpg
(1)Image represents 500 North Beacon Street on the Arsenal on the Charles mega campus.
(2)Image represents 60 Sylvan Road on the Alexandria Center® for Life Science – Waltham mega campus. The project is expected to capture demand in our Route 128 submarket.
(3)Image represents a single- or multi-tenant project expanding our existing Alexandria Center® for Science and Technology – Mission Bay mega campus, where our joint venture partner will fund 100% of the construction cost until it attains an
ownership interest of 75%, after which it will contribute its respective share of additional capital. We are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants.
New Class A/A+ Development and Redevelopment Properties: Current Projects
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35
230 Harriet Tubman Way
10935, 10945, and 10955
Alexandria Way(1)
4135 Campus Point Court
4155 Campus Point Court
10075 Barnes Canyon Road
San Francisco Bay Area/
South San Francisco
San Diego/Torrey Pines
San Diego/
University Town Center
San Diego/
University Town Center
San Diego/Sorrento Mesa
285,346 RSF
334,996 RSF
426,927 RSF
171,102 RSF
253,079 RSF
100% Leased
100% Leased
100% Leased
100% Leased
70% Leased
harriettubman.jpg
alexandriawayoas.jpg
campuspoint4135.jpg
campuspoint4155.jpg
barnescanyon10075.jpg
1150 Eastlake Avenue East
Alexandria Center® for Advanced
Technologies – Monte Villa Parkway(2)
9820 Darnestown Road
9808 Medical Center Drive
8800 Technology Forest Place
Seattle/Lake Union
Seattle/Bothell
Maryland/Rockville
Maryland/Rockville
Texas/Greater Houston
31,270 RSF
34,306 RSF
250,000 RSF
42,946 RSF
73,298 RSF
100% Leased
98% Leased
100% Leased
69% Leased
41% Leased
a1150eastlake.jpg
montevilla3755.jpg
darnestown9820.jpg
mcd9808.jpg
techforest8800.jpg
(1)Image represents 10955 Alexandria Way on the One Alexandria Square mega campus.
(2)Image represents 3755 Monte Villa Parkway.
New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)
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Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
36
Property/Market/Submarket
Square Footage
Percentage
Occupancy(1)
Dev/Redev
In Service
CIP
Total
Leased
Leased/
Negotiating
Initial
Stabilized
Under construction
2024 and 2025 stabilization
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs
Dev
116,414
204,395
320,809
36%
36%
4Q23
2025
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/
Cambridge/Inner Suburbs
Dev
138,537
109,481
248,018
85
92
1Q24
2025
201 Brookline Avenue/Greater Boston/Fenway
Dev
451,967
58,149
510,116
98
99
3Q22
4Q24
840 Winter Street/Greater Boston/Route 128
Redev
28,534
139,680
168,214
100
100
4Q24
2025
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco
Dev
—
285,346
285,346
100
100
1Q25
1Q25
4155 Campus Point Court/San Diego/University Town Center
Dev
—
171,102
171,102
100
100
4Q24
4Q24
1150 Eastlake Avenue East/Seattle/Lake Union
Dev
280,361
31,270
311,631
100
100
4Q23
3Q24
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell
Redev
426,628
34,306
460,934
98
98
1Q23
4Q24
9820 Darnestown Road/Maryland/Rockville
Dev
—
250,000
250,000
100
100
4Q24
4Q24
9808 Medical Center Drive/Maryland/Rockville
Dev
52,115
42,946
95,061
69
69
3Q23
4Q24
8800 Technology Forest Place/Texas/Greater Houston
Redev
50,094
73,298
123,392
41
41
2Q23
2025
Canada
Redev
111,479
139,311
250,790
73
73
3Q23
2025
1,656,129
1,539,284
3,195,413
87
87
2026 and beyond stabilization
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs
Redev
82,216
(2)
308,446
390,662
21
21
2027
2027
401 Park Drive/Greater Boston/Fenway
Redev
—
159,959
159,959
14
14
2024
2026
421 Park Drive/Greater Boston/Fenway
Dev
—
392,011
392,011
13
13
2026
2027
40, 50, and 60 Sylvan Road/Greater Boston/Route 128
Redev
—
576,924
576,924
29
29
2025
2027
Other/Greater Boston
Redev
—
453,869
453,869
—
—
(3)
2027
2027
1450 Owens Street/San Francisco Bay Area/Mission Bay
Dev
—
212,796
212,796
—
—
(4)
2025
2026
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco
Redev
44,652
282,054
326,706
21
21
1Q24
2026
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines
Dev
—
334,996
334,996
100
100
4Q24
2026
4135 Campus Point Court/San Diego/University Town Center
Dev
—
426,927
426,927
100
100
2026
2026
10075 Barnes Canyon Road/San Diego/Sorrento Mesa
Dev
—
253,079
253,079
70
70
2025
2026
126,868
3,401,061
3,527,929
38
38
1,782,997
4,940,345
6,723,342
61
61
Committed near-term project expected to commence construction in the next two years
4165 Campus Point Court/San Diego/University Town Center
Dev
—
492,570
492,570
—
51
Total
1,782,997
5,432,915
7,215,912
57%
61%
(1)Initial occupancy dates are subject to leasing and/or market conditions. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. Multi-tenant projects may increase in occupancy over a period of time.
(2)We expect to redevelop an additional 25,312 RSF of space occupied as of June 30, 2024 into laboratory space upon expiration of the existing leases through 1H25. Refer to “Investments in real estate” under “Definitions and
reconciliations” in the Supplemental Information for additional details.
(3)Represents a project focused on demand from our existing tenants in our adjacent properties/campuses and that will also address demand from other non-Alexandria properties/campuses.
(4)Represents a single- or multi-tenant project expanding our existing mega campus, where our joint venture partner will fund 100% of the construction cost until it attains an ownership interest of 75%, after which it will contribute its
respective share of additional capital. We are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants.
New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)
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37
Our
Ownership
Interest
At 100%
Unlevered Yields
Property/Market/Submarket
In Service
CIP
Cost to
Complete
Total at
Completion
Initial
Stabilized
Initial Stabilized
(Cash Basis)
Under construction
2024 and 2025 stabilization
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs
75.0%
$135,922
$184,887
$147,191
$468,000
7.1%
7.0%
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/
Cambridge/Inner Suburbs
100%
279,029
110,110
37,861
427,000
6.2%
5.5%
201 Brookline Avenue/Greater Boston/Fenway
99.0%
664,823
88,711
21,466
775,000
7.2%
6.5%
840 Winter Street/Greater Boston/Route 128
100%
13,651
184,050
39,299
237,000
7.6%
6.5%
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco
47.7%
—
312,344
197,656
510,000
7.4%
6.4%
4155 Campus Point Court/San Diego/University Town Center
55.0%
—
124,823
48,177
173,000
7.4%
6.5%
1150 Eastlake Avenue East/Seattle/Lake Union
100%
373,827
45,984
23,189
443,000
6.6%
6.7%
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell
100%
193,641
11,144
24,215
229,000
6.3%
6.2%
9820 Darnestown Road/Maryland/Rockville
100%
—
161,736
15,264
177,000
6.3%
5.6%
9808 Medical Center Drive/Maryland/Rockville
100%
63,410
47,451
2,139
113,000
5.5%
5.5%
8800 Technology Forest Place/Texas/Greater Houston
100%
57,055
45,377
9,568
112,000
6.3%
6.0%
Canada
100%
49,303
44,036
19,661
113,000
6.4%
6.3%
1,830,661
1,360,653
2026 and beyond stabilization(1)
311 Arsenal Street/Greater Boston/Cambridge/Inner Suburbs
100%
60,555
228,799
TBD
401 Park Drive/Greater Boston/Fenway
100%
—
178,178
421 Park Drive/Greater Boston/Fenway
99.7%
—
376,163
40, 50, and 60 Sylvan Road/Greater Boston/Route 128
100%
—
419,034
Other/Greater Boston
100%
—
141,776
1450 Owens Street/San Francisco Bay Area/Mission Bay
26.3%
—
230,909
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco
50.0%
59,265
275,841
151,894
487,000
5.0%
5.1%
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines
100%
—
283,079
219,921
503,000
6.2%
5.8%
4135 Campus Point Court/San Diego/University Town Center
55.0%
—
236,595
TBD
10075 Barnes Canyon Road/San Diego/Sorrento Mesa
50.0%
—
157,687
163,313
321,000
5.5%
5.7%
119,820
2,528,061
1,950,481
3,888,714
Committed near-term project expected to commence construction in the next two years
4165 Campus Point Court/San Diego/University Town Center
55.0%
—
58,751
TBD
Total
$1,950,481
$3,947,465
$3,840,000
(2)
$9,740,000
(2)
Our share of investment(2)(3)
$1,880,000
$3,170,000
$3,040,000
$8,090,000
Refer to “Initial stabilized yield (unlevered)” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2026 and beyond over the next several quarters.
(2)Represents dollar amount rounded to the nearest $10 million and includes preliminary estimated amounts for projects listed as TBD.
(3)Represents our share of investment based on our ownership percentage upon completion of development or redevelopment projects.
New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)
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(Dollars in thousands)
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38
69% of Our Total Value-Creation Pipeline RSF Is Within Our Mega Campuses
Market
Property/Submarket
Our
Ownership
Interest
Book Value
Square Footage
Development and Redevelopment
Active and Near-Term Construction
Future Opportunities Subject to
Market Conditions and Leasing
Under
Construction
Committed
Near Term
Priority
Anticipated
Future
Total(1)
Greater Boston
Mega Campus: The Arsenal on the Charles/Cambridge/Inner
Suburbs
100%
$350,306
417,927
—
25,312
34,157
477,396
311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury
Avenue
99 Coolidge Avenue/Cambridge/Inner Suburbs
75.0%
184,887
204,395
—
—
—
204,395
Mega Campus: Alexandria Center® for Life Science – Fenway/
Fenway
(2)
643,052
610,119
—
—
—
610,119
201 Brookline Avenue and 401 and 421 Park Drive
Mega Campus: Alexandria Center® for Life Science – Waltham/
Route 128
100%
665,082
716,604
—
—
515,000
1,231,604
40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter
Street
Mega Campus: Alexandria Center® at Kendall Square/
Cambridge
100%
124,868
—
—
—
216,455
216,455
100 Edwin H. Land Boulevard
Mega Campus: Alexandria Technology Square®/Cambridge
100%
7,881
—
—
—
100,000
100,000
Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550
Arsenal Street/Cambridge/Inner Suburbs
100%
85,126
—
—
—
902,000
902,000
446, 458, 500, and 550 Arsenal Street
Mega Campus: 285, 299, 307, and 345 Dorchester Avenue/
Seaport Innovation District
60.0%
283,744
—
—
—
1,040,000
1,040,000
10 Necco Street/Seaport Innovation District
100%
104,966
—
—
—
175,000
175,000
Mega Campus: One Moderna Way/Route 128
100%
26,500
—
—
—
1,085,000
1,085,000
215 Presidential Way/Route 128
100%
6,816
—
—
—
112,000
112,000
Other value-creation projects
(3)
295,006
453,869
—
—
1,323,541
1,777,410
$2,778,234
2,402,914
—
25,312
5,503,153
7,931,379
Refer to “Mega campus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have
future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property. Refer to “Investments in real estate” under “Definitions and reconciliations”
in the Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(2)We have a 99.0% interest in 201 Brookline Avenue aggregating 58,149 RSF, a 100% interest in 401 Park Drive aggregating 159,959 RSF, and a 99.7% interest in 421 Park Drive aggregating 392,011 RSF.
(3)Includes a property in which we own a partial interest through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline
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June 30, 2024
(Dollars in thousands)
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39
Market
Property/Submarket
Our
Ownership
Interest
Book Value
Square Footage
Development and Redevelopment
Active and Near-Term Construction
Future Opportunities Subject to
Market Conditions and Leasing
Under
Construction
Committed
Near Term
Priority
Anticipated
Future
Total(1)
San Francisco Bay Area
Mega Campus: Alexandria Center® for Science and Technology
– Mission Bay/Mission Bay
26.3%
$230,909
212,796
—
—
—
212,796
1450 Owens Street
Alexandria Center® for Life Science – Millbrae/South San Francisco
47.7%
469,434
285,346
—
198,188
150,213
633,747
230 Harriet Tubman Way, 201 and 231 Adrian Road, and 6 and 30
Rollins Road
Mega Campus: Alexandria Technology Center® – Gateway/
South San Francisco
50.0%
302,398
282,054
—
—
291,000
573,054
651 Gateway Boulevard
Mega Campus: Alexandria Center® for Advanced Technologies
– Tanforan/South San Francisco
100%
388,661
—
—
150,000
1,780,000
1,930,000
1122, 1150, and 1178 El Camino Real
Mega Campus: Alexandria Center® for Advanced Technologies
– South San Francisco/South San Francisco
100%
6,655
—
—
107,250
90,000
197,250
211(2) and 269 East Grand Avenue
Mega Campus: Alexandria Center® for Life Science – San
Carlos/Greater Stanford
100%
435,269
—
—
105,000
1,392,830
1,497,830
960 Industrial Road, 987 and 1075 Commercial Street, and 888
Bransten Road
3825 and 3875 Fabian Way/Greater Stanford
100%
151,762
—
—
—
478,000
478,000
2100, 2200, 2300, and 2400 Geng Road/Greater Stanford
100%
35,759
—
—
—
240,000
240,000
901 California Avenue/Greater Stanford
100%
18,640
—
—
—
56,924
56,924
Mega Campus: 88 Bluxome Street/SoMa
100%
388,020
—
—
—
1,070,925
1,070,925
Other value-creation projects
100%
—
—
—
—
25,000
25,000
$2,427,507
780,196
—
560,438
5,574,892
6,915,526
Refer to “Mega campus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have
future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property. Refer to “Investments in real estate” under “Definitions and reconciliations”
in the Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(2)Includes a property in which we own a partial interest through a real estate joint venture. Refer to “Joint venture financial information” in the Supplemental Information for additional details.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
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June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
40
Market
Property/Submarket
Our
Ownership
Interest
Book Value
Square Footage
Development and Redevelopment
Active and Near-Term Construction
Future Opportunities Subject to
Market Conditions and Leasing
Under
Construction
Committed
Near Term
Priority
Anticipated
Future
Total(1)
San Diego
Mega Campus: One Alexandria Square/Torrey Pines
100%
$339,673
334,996
—
—
125,280
460,276
10935, 10945, and 10955 Alexandria Way and 10975 and 10995
Torreyana Road
Mega Campus: Campus Point by Alexandria/University Town
Center
55.0%
584,337
598,029
492,570
—
650,000
1,740,599
10010(2), 10140(2), and 10260 Campus Point Drive and 4135, 4155,
4161, 4165, and 4275(2) Campus Point Court
Mega Campus: SD Tech by Alexandria/Sorrento Mesa
50.0%
283,420
253,079
—
250,000
243,845
746,924
9805 Scranton Road and 10065 and 10075 Barnes Canyon Road
11255 and 11355 North Torrey Pines Road/Torrey Pines
100%
146,905
—
—
153,000
62,000
215,000
ARE Towne Centre/University Town Center
100%
19,163
—
—
230,000
—
230,000
9363, 9373, and 9393 Towne Centre Drive
Costa Verde by Alexandria/University Town Center
100%
135,662
—
—
—
537,000
537,000
8410-8750 Genesee Avenue and 4282 Esplanade Court
Mega Campus: 5200 Illumina Way/University Town Center
51.0%
17,443
—
—
—
451,832
451,832
9625 Towne Centre Drive/University Town Center
30.0%
837
—
—
—
100,000
100,000
Mega Campus: Sequence District by Alexandria/Sorrento Mesa
100%
46,323
—
—
—
1,798,915
1,798,915
6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive
Scripps Science Park by Alexandria/Sorrento Mesa
100%
118,800
—
—
—
598,349
598,349
10048, 10219, 10256, and 10260 Meanley Drive and 10277
Scripps Ranch Boulevard
Pacific Technology Park/Sorrento Mesa
50.0%
23,845
—
—
—
149,000
149,000
9444 Waples Street
4025, 4031, 4045, and 4075 Sorrento Valley Boulevard/Sorrento
Valley
100%
43,064
—
—
—
247,000
247,000
Other value-creation projects
100%
74,588
—
—
—
475,000
475,000
$1,834,060
1,186,104
492,570
633,000
5,438,221
7,749,895
Refer to “Mega campus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have
future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property. Refer to “Investments in real estate” under “Definitions and reconciliations”
in the Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(2)We have a 100% interest in this property.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
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June 30, 2024
(Dollars in thousands)
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41
Market
Property/Submarket
Our
Ownership
Interest
Book Value
Square Footage
Development and Redevelopment
Active and Near-Term Construction
Future Opportunities Subject to
Market Conditions and Leasing
Under
Construction
Committed
Near Term
Priority
Anticipated
Future
Total(1)
Seattle
Mega Campus: Alexandria Center® for Life Science – Eastlake/
Lake Union
100%
$45,984
31,270
—
—
—
31,270
1150 Eastlake Avenue East
Alexandria Center® for Advanced Technologies – Monte Villa
Parkway/Bothell
100%
11,144
34,306
—
50,552
—
84,858
3301 Monte Villa Parkway
Mega Campus: Alexandria Center® for Life Science – South
Lake Union/Lake Union
(2)
452,222
—
—
1,095,586
188,400
1,283,986
601 and 701 Dexter Avenue North and 800 Mercer Street
830 and 1010 4th Avenue South/SoDo
100%
58,530
—
—
—
597,313
597,313
Mega Campus: Alexandria Center® for Advanced Technologies
– Canyon Park/Bothell
100%
16,891
—
—
—
230,000
230,000
21660 20th Avenue Southeast
Other value-creation projects
100%
140,480
—
—
—
706,087
706,087
725,251
65,576
—
1,146,138
1,721,800
2,933,514
Maryland
Mega Campus: Alexandria Center® for Life Science – Shady
Grove/Rockville
100%
230,578
292,946
—
—
296,000
588,946
9808 Medical Center Drive and 9820 and 9830 Darnestown Road
230,578
292,946
—
—
296,000
588,946
Research Triangle
Mega Campus: Alexandria Center® for Advanced Technologies
– Research Triangle/Research Triangle
100%
101,026
—
—
180,000
990,000
1,170,000
4 and 12 Davis Drive
Mega Campus: Alexandria Center® for Life Science – Durham/
Research Triangle
100%
174,404
—
—
—
2,210,000
2,210,000
41 Moore Drive
Mega Campus: Alexandria Center® for NextGen Medicines/
Research Triangle
100%
$106,777
—
—
—
1,055,000
1,055,000
3029 East Cornwallis Road
Refer to “Mega campus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF of buildings currently in operation at properties that also have
future development or redevelopment opportunities. Upon expiration of existing in-place leases, we have the intent to demolish or redevelop the existing property. Refer to “Investments in real estate” under “Definitions and reconciliations”
in the Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(2)We have a 100% interest in 601 and 701 Dexter Avenue North aggregating 414,986 RSF and a 60% interest in the priority anticipated development project at 800 Mercer Street aggregating 869,000 RSF.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
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(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
42
Market
Property/Submarket
Our
Ownership
Interest
Book Value
Square Footage
Development and Redevelopment
Active and Near-Term Construction
Future Opportunities Subject to
Market Conditions and Leasing
Under
Construction
Committed
Near Term
Priority
Anticipated
Future
Total(1)
Research Triangle (continued)
Mega Campus: Alexandria Center® for Sustainable
Technologies/Research Triangle
100%
$52,777
—
—
—
750,000
750,000
120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South
Triangle Drive
100 Capitola Drive/Research Triangle
100%
—
—
—
—
65,965
65,965
Other value-creation projects
100%
4,185
—
—
—
76,262
76,262
439,169
—
—
180,000
5,147,227
5,327,227
New York City
Mega Campus: Alexandria Center® for Life Science – New York
City/New York City
100%
161,482
—
—
—
550,000
(2)
550,000
161,482
—
—
—
550,000
550,000
Texas
Alexandria Center® for Advanced Technologies at The Woodlands/
Greater Houston
100%
48,250
73,298
—
—
116,405
189,703
8800 Technology Forest Place
1001 Trinity Street and 1020 Red River Street/Austin
100%
9,929
—
—
126,034
123,976
250,010
Other value-creation projects
100%
135,323
—
—
—
1,694,000
1,694,000
193,502
73,298
—
126,034
1,934,381
2,133,713
Canada
100%
44,036
139,311
—
—
371,743
511,054
Other value-creation projects
100%
118,755
—
—
—
724,349
724,349
Total pipeline as of June 30, 2024
$8,952,574
(3)
4,940,345
492,570
2,670,922
27,261,766
35,365,603
Refer to “Mega campus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Total square footage includes 3,407,847 RSF of buildings currently in operation that we expect to demolish or redevelop and commence future construction. Refer to “Investments in real estate” under “Definitions and reconciliations” in the
Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(2)Pursuant to an option agreement, we are currently negotiating a long-term ground lease with the City of New York for the future site of a new life science building aggregating approximately 550,000 SF.
(3)Includes $3.9 billion of projects that are currently under construction and are 61% leased/negotiating. We also expect to commence construction on one committed near-term project aggregating $58.8 million, which is 51% leased/
negotiating, in the next two years after June 30, 2024.
New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
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(Dollars in thousands)
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43
Construction spending
Six Months Ended
June 30, 2024
Projected Midpoint for
the Year Ending
December 31, 2024
Construction of Class A/A+ properties:
Active construction projects
Under construction and committed near-term projects(1) and projects expected to commence active construction in 2024(2)
$
888,641
$
1,778,000
Future pipeline pre-construction
Primarily mega campus expansion pre-construction work (entitlement, design, and site work)
257,218
652,000
Revenue- and non-revenue-enhancing capital expenditures
115,659
250,000
Construction spend (before contributions from noncontrolling interests)
1,261,518
2,680,000
Contributions from noncontrolling interests (consolidated real estate joint ventures)
(176,497)
(430,000)
(3)
Total construction spending
$
1,085,021
$
2,250,000
2024 guidance range
$1,950,000 – $2,550,000
Projected capital contributions from partners in consolidated real estate joint ventures to fund construction
Projected Timing
Amount(4)
3Q24 through 4Q24
$253,503
2025 through 2027
804,528
Total
$1,058,031
Capitalization of interest
Key Categories of Interest Capitalized During 1H24
Average Real Estate
Basis Capitalized
During 1H24
Percentage of
Total Capitalized
Interest
RSF Upon
Completion of
Construction
Construction of Class A/A+ properties:
77%
Potential Growth
in Operating RSF
Active construction projects
Under construction and committed near-term projects(1)
$2,723,268
34%
5,432,915
Future pipeline pre-construction
Priority anticipated projects
624,317
(5)
8
2,670,922
Primarily mega campus expansion pre-construction work (entitlement, design, and site work)
3,579,182
(5)
44
27,261,766
Smaller redevelopments and repositioning capital projects
1,123,183
14
N/A
$8,049,950
100%
35,365,603
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Includes projects under construction aggregating 4.9 million RSF and one committed near-term project aggregating 492,570 RSF expected to commence construction during the next two years after June 30, 2024, which are 61% leased/
negotiating and expected to generate $480 million in annual incremental net operating income primarily commencing from 3Q24 through 1Q28.
(2)Includes certain priority anticipated development and redevelopment projects expected to commence active construction in 2024, subject to market conditions and leasing. Refer to “Investments in real estate” under “Definitions and
reconciliations” in the Supplemental Information for additional details, including value-creation square feet currently included in rental properties.
(3)Represents contractual capital commitments expected from existing consolidated real estate joint venture partners to fund construction.
(4)Represents reductions to our consolidated construction spending.
(5)Average real estate basis capitalized related to our future pipeline pre-construction includes 32% from four key active and future value-creation projects on mega campuses. See next page for additional details.
Construction Spending and Capitalization of Interest
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(Dollars in thousands)
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44
Key Active and Future Value-Creation Projects on Mega Campuses
Alexandria Center® for Advanced Technologies – Tanforan
Alexandria Center® for Life Science – San Carlos
San Francisco Bay Area/South San Francisco
San Francisco Bay Area/Greater Stanford
1.9 million future SF
1.5 million future SF
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Campus Point by Alexandria
Alexandria Center® for Life Science – South Lake Union
San Diego/University Town Center
Seattle/Lake Union
1.7 million active and future SF
1.3 million future SF
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Refer to “Mega campus” under “Definitions and reconciliations” in the Supplemental Information for additional details.
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Construction Spending and Capitalization of Interest (continued)
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
45
Consolidated Real Estate Joint Ventures
Property
Market
Submarket
Noncontrolling
Interest Share(1)
Operating RSF
at 100%
50 and 60 Binney Street
Greater Boston
Cambridge/Inner Suburbs
66.0%
532,395
75/125 Binney Street
Greater Boston
Cambridge/Inner Suburbs
60.0%
388,269
100 and 225 Binney Street and 300 Third Street
Greater Boston
Cambridge/Inner Suburbs
70.0%
870,106
99 Coolidge Avenue
Greater Boston
Cambridge/Inner Suburbs
25.0%
116,414
(2)
15 Necco Street
Greater Boston
Seaport Innovation District
43.3%
345,996
285, 299, 307, and 345 Dorchester Avenue
Greater Boston
Seaport Innovation District
40.0%
—
(2)
Alexandria Center® for Science and Technology – Mission Bay(3)
San Francisco Bay Area
Mission Bay
75.0%
999,866
1450 Owens Street
San Francisco Bay Area
Mission Bay
73.7%
(4)
—
(2)
601, 611, 651(2), 681, 685, and 701 Gateway Boulevard
San Francisco Bay Area
South San Francisco
50.0%
831,326
751 Gateway Boulevard
San Francisco Bay Area
South San Francisco
49.0%
230,592
211(2) and 213 East Grand Avenue
San Francisco Bay Area
South San Francisco
70.0%
300,930
500 Forbes Boulevard
San Francisco Bay Area
South San Francisco
90.0%
155,685
Alexandria Center® for Life Science – Millbrae
San Francisco Bay Area
South San Francisco
52.3%
—
(2)
3215 Merryfield Row
San Diego
Torrey Pines
70.0%
170,523
Campus Point by Alexandria(5)
San Diego
University Town Center
45.0%
1,342,164
5200 Illumina Way
San Diego
University Town Center
49.0%
792,687
9625 Towne Centre Drive
San Diego
University Town Center
70.0%
163,648
SD Tech by Alexandria(6)
San Diego
Sorrento Mesa
50.0%
884,270
Pacific Technology Park
San Diego
Sorrento Mesa
50.0%
544,352
Summers Ridge Science Park(7)
San Diego
Sorrento Mesa
70.0%
316,531
1201 and 1208 Eastlake Avenue East and 199 East Blaine Street
Seattle
Lake Union
70.0%
321,115
400 Dexter Avenue North
Seattle
Lake Union
70.0%
290,754
800 Mercer Street
Seattle
Lake Union
40.0%
—
(2)
Unconsolidated Real Estate Joint Ventures
Property
Market
Submarket
Our Ownership
Share(8)
Operating RSF
at 100%
1655 and 1725 Third Street
San Francisco Bay Area
Mission Bay
10.0%
586,208
1401/1413 Research Boulevard
Maryland
Rockville
65.0%
(9)
(10)
1450 Research Boulevard
Maryland
Rockville
73.2%
(9)
42,679
101 West Dickman Street
Maryland
Beltsville
58.2%
(9)
135,423
Refer to “Joint venture financial information” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)In addition to the consolidated real estate joint ventures listed, various joint venture partners hold insignificant noncontrolling interests in three other real estate joint ventures in North America.
(2)Represents a property currently under construction or in our value-creation pipeline. Refer to the sections under “New Class A/A+ development and redevelopment properties” in the Supplemental Information for additional details.
(3)Includes 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South.
(4)The noncontrolling interest share of our joint venture partner is anticipated to increase to 75% as our partner contributes equity to fund the construction of the project over time.
(5)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4165, 4224, and 4242 Campus Point Court.
(6)Includes 9605, 9645, 9675, 9685, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.
(7)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.
(8)In addition to the unconsolidated real estate joint ventures listed, we hold an interest in one other insignificant unconsolidated real estate joint venture in North America.
(9)Represents a joint venture with a local real estate operator in which our joint venture partner manages the day-to-day activities that significantly affect the economic performance of the joint venture.
(10)Represents a joint venture with a distinguished retail real estate developer for a retail shopping center aggregating 84,837 RSF.
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Joint Venture Financial Information
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
46
As of June 30, 2024
Noncontrolling Interest
Share of Consolidated
Real Estate JVs
Our Share of
Unconsolidated Real
Estate JVs
Investments in real estate
$
4,157,101
$
124,994
Cash, cash equivalents, and restricted cash
132,692
4,128
Other assets
431,584
12,752
Secured notes payable
(33,581)
(95,547)
Other liabilities
(279,550)
(5,792)
Redeemable noncontrolling interests
(16,440)
—
$
4,391,806
$
40,535
Noncontrolling Interest Share of
Consolidated Real Estate JVs
Our Share of Unconsolidated Real Estate JVs
June 30, 2024
June 30, 2024
Three Months Ended
Six Months Ended
Three Months Ended
Six Months Ended
Total revenues
$
111,210
$
222,307
$
3,156
$
6,331
Rental operations
(31,443)
(62,312)
(995)
(2,019)
79,767
159,995
2,161
4,312
General and administrative
(1,004)
(1,682)
(30)
(70)
Interest
(253)
(469)
(933)
(1,855)
Depreciation and amortization of real estate assets
(31,364)
(62,268)
(1,068)
(2,102)
Fixed returns allocated to redeemable noncontrolling interests(1)
201
402
—
—
$
47,347
$
95,978
$
130
$
285
Straight-line rent and below-market lease revenue
$
6,225
$
15,534
$
248
$
530
Funds from operations(2)
$
78,711
$
158,246
$
1,198
$
2,387
Refer to “Joint venture financial information” under “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents an allocation of joint venture earnings to redeemable noncontrolling interests primarily in one property in our South San Francisco submarket. These redeemable noncontrolling interests earn a fixed return on their
investment rather than participate in the operating results of the property.
(2)Refer to “Funds from operations and funds from operations per share” in the Earnings Press Release and “Definitions and reconciliations” in the Supplemental Information for additional details.
Joint Venture Financial Information (continued)
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(In thousands)
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47
We hold investments in publicly traded companies and privately held entities primarily involved in the life science industry. The tables below summarize components of our investment income
(loss) and non-real estate investments (in thousands). Refer to “Investments” under “Definitions and reconciliations” in the Supplemental Information for additional details.
June 30, 2024
Year Ended
December 31, 2023
Three Months Ended
Six Months Ended
Realized gains
$20,578
(1)
$34,704
(1)
$6,078
(2)
Unrealized losses
(64,238)
(3)
(35,080)
(4)
(201,475)
(5)
Investment loss
$(43,660)
$(376)
$(195,397)
June 30, 2024
December 31, 2023
Investments
Cost
Unrealized Gains
Unrealized Losses
Carrying Amount
Carrying Amount
Publicly traded companies
$201,321
$42,052
$(90,182)
$153,191
$159,566
Entities that report NAV
510,335
162,559
(33,254)
639,640
671,532
Entities that do not report NAV:
Entities with observable price changes
94,509
79,609
(1,007)
173,111
174,268
Entities without observable price changes
389,124
—
—
389,124
368,654
Investments accounted for under the equity method
  N/A
N/A
N/A
139,282
75,498
June 30, 2024
$1,195,289
(6)
$284,220
$(124,443)
$1,494,348
$1,449,518
December 31, 2023
$1,177,072
$320,445
$(123,497)
$1,449,518
Public/Private Mix (Cost)
Tenant/Non-Tenant Mix (Cost)
chart-e4efa7f454f54c3c82f.gif
chart-2eb60ce88bcd4ad483a.gif
15%
Public
29%
Tenant
85%
Private
71%
Non-Tenant
(1)Consists of realized gains of $33.4 million and $62.2 million, partially offset by impairment charges of $12.8 million and $27.5 million during the three and six months ended June 30, 2024, respectively,
(2)Consists of realized gains of $80.6 million, offset by impairment charges of $74.6 million during the year ended December 31, 2023.
(3)Consists of unrealized losses of $20.2 million primarily resulting from the decrease in fair values of our investments in publicly traded entities and $44.1 million resulting from accounting reclassifications of unrealized gains recognized in
prior periods into realized gains upon our realization of investments during the three months ended June 30, 2024.
(4)Primarily relates to the accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our realization of investments during the six months ended June 30, 2024.
(5)Consists of unrealized losses of $111.6 million primarily resulting from the decrease in the fair value of our investments in privately held entities that report NAV and $89.9 million resulting from accounting reclassifications of unrealized
gains recognized in prior periods into realized gains upon our sales of investments during the year ended December 31, 2023.
(6)Represents 2.8% of gross assets as of June 30, 2024. Refer to “Gross assets” under “Definitions and reconciliations” in the Supplemental Information for additional details.
Investments
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(Dollars in thousands)
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48
Liquidity
Minimal Outstanding Borrowings and Significant Availability
on Unsecured Senior Line of Credit
(in millions)
$5.6B
q224lineofcredit.jpg
(in millions)
Availability under our unsecured senior line of credit, net of amounts
outstanding under our commercial paper program
$4,800
Outstanding forward equity sales agreements(1)
27
Cash, cash equivalents, and restricted cash
566
Availability under our secured construction loan
61
Investments in publicly traded companies
153
Liquidity as of June 30, 2024
$5,607
Net Debt and Preferred Stock to Adjusted EBITDA(2)
Fixed-Charge Coverage Ratio(2)
chart-a57e9fc27a834f9e9b2.gif
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Refer to “Definitions and reconciliations” in the Supplemental Information for additional details.
(1)Represents expected net proceeds from the future settlement of 230 thousand shares of common stock under forward equity sales agreements after underwriter discounts.
(2)Quarter annualized.
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Key Credit Metrics
June 30, 2024
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49
Weighted-Average Remaining Term of 13.0 Years
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        (1)Refer to footnotes 2 through 4 on the next page under “Fixed-rate and variable-rate debt” for additional details.
Summary of Debt
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(In millions)
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50
Fixed-rate and variable-rate debt
Fixed-Rate
Debt
Variable-Rate
Debt
Total
Percentage
Weighted-Average
Interest Rate(1)
Remaining Term
(in years)
Secured notes payable
$619
$134,323
$134,942
1.1%
8.13%
2.4
Unsecured senior notes payable
12,089,561
—
12,089,561
97.3
3.81
13.3
Unsecured senior line of credit(2) and commercial
paper program(3)
—
199,552
199,552
1.6
5.57
3.6
(4)
Total/weighted average
$12,090,180
$333,875
$12,424,055
100.0%
3.89%
13.0
(4)
Percentage of total debt
97.3%
2.7%
100.0%
(1)Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to the amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.
(2)As of June 30, 2024, we had no outstanding balance on our unsecured senior line of credit.
(3)The commercial paper program provides us with the ability to issue up to $2.5 billion of commercial paper notes that bear interest at short-term fixed rates and can generally be issued with a maturity of 30 days or less and with a
maximum maturity of 397 days from the date of issuance. Borrowings under the program are used to fund short-term capital needs and are backed by our unsecured senior line of credit. In the event we are unable to issue
commercial paper notes or refinance outstanding borrowings under terms equal to or more favorable than those under our unsecured senior line of credit, we expect to borrow under the unsecured senior line of credit at
SOFR+0.855%. As of June 30, 2024, we had $199.6 million of commercial paper notes outstanding with a weighted-average interest rate of 5.57%.
(4)We calculate the weighted-average remaining term of our commercial paper notes by using the maturity date of our unsecured senior line of credit. Using the maturity date of our outstanding commercial paper notes, the
consolidated weighted-average maturity of our debt is 13.0 years. The commercial paper notes sold during the six months ended June 30, 2024 were issued at a weighted-average yield to maturity of 5.59% and had a weighted-
average maturity term of 16 days.
Average Debt Outstanding
Weighted-Average Interest Rate
June 30, 2024
June 30, 2024
Three Months Ended
Six Months Ended
Three Months Ended
Six Months Ended
Long-term fixed-rate debt
$12,171,633
$11,927,318
3.79%
3.75%
Short-term variable-rate unsecured senior line of credit and commercial paper
program debt
335,917
433,681
5.56
5.61
Blended average interest rate
12,507,550
12,360,999
3.84
3.82
Loan fee amortization and annual facility fee related to unsecured senior line of credit
N/A
N/A
0.12
0.12
Total/weighted average
$12,507,550
$12,360,999
3.96%
3.94%
Summary of Debt (continued)
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(Dollars in thousands)
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51
Debt covenants
Unsecured Senior Notes Payable
Unsecured Senior Line of Credit
Debt Covenant Ratios(1)
Requirement
June 30, 2024
Requirement
June 30, 2024
Total Debt to Total Assets
≤ 60%
30%
≤ 60.0%
29.2%
Secured Debt to Total Assets
≤ 40%
0.3%
≤ 45.0%
0.2%
Consolidated EBITDA to Interest Expense
≥ 1.5x
13.2x
≥ 1.50x
4.01x
Unencumbered Total Asset Value to Unsecured Debt
≥ 150%
328%
N/A
N/A
Unsecured Interest Coverage Ratio
N/A
N/A
≥ 1.75x
15.84x
(1)All covenant ratio titles utilize terms as defined in the respective debt and credit agreements. The calculation of consolidated EBITDA is based on the definitions contained in our loan agreements and is not directly comparable to
the computation of EBITDA as described in Exchange Act Release No. 47226.
Unconsolidated real estate joint ventures’ debt
At 100%
Unconsolidated Joint Venture
Maturity Date
Stated Rate
Interest Rate(1)
Aggregate
Commitment
Debt Balance(2)
Our Share
1401/1413 Research Boulevard
12/23/24
2.70%
3.31%
$28,500
$28,417
65.0%
1655 and 1725 Third Street
3/10/25
(3)
4.50%
4.57%
600,000
599,718
10.0%
101 West Dickman Street
11/10/26
SOFR+1.95%
(4)
7.39%
26,750
18,558
58.2%
1450 Research Boulevard
12/10/26
SOFR+1.95%
(4)
7.45%
13,000
8,598
73.2%
$668,250
$655,291
(1)Includes interest expense and amortization of loan fees.
(2)Represents outstanding principal, net of unamortized deferred financing costs, as of June 30, 2024.
(3)The unconsolidated joint venture is early in the process of working with prospective lenders to refinance this debt. As of June 30, 2024, our investment in this unconsolidated real estate joint venture was $11.2 million.
(4)This loan is subject to a fixed SOFR floor of 0.75%.
Summary of Debt (continued)
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(Dollars in thousands)
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52
Debt
Stated 
Rate
Interest
Rate(1)
Maturity
Date(2)
Principal Payments Remaining for the Periods Ending December 31,
Principal
Unamortized
(Deferred
Financing
Cost),
(Discount)/
Premium
Total
2024
2025
2026
2027
2028
Thereafter
Secured notes payable
Greater Boston(3)
SOFR+2.70%
8.14%
11/19/26
$—
$—
$134,648
$—
$—
$—
$134,648
$(325)
$134,323
San Francisco Bay Area
6.50%
6.50
7/1/36
32
34
36
38
41
438
619
—
619
Secured debt weighted-average interest rate/
subtotal
8.13
32
34
134,684
38
41
438
135,267
(325)
134,942
Unsecured senior line of credit and commercial
paper program(4)
(4)
5.57
(4)
1/22/28
(4)
—
—
—
—
200,000
—
200,000
(448)
199,552
Unsecured senior notes payable
3.45%
3.62
4/30/25
—
600,000
—
—
—
—
600,000
(739)
599,261
Unsecured senior notes payable
4.30%
4.50
1/15/26
—
—
300,000
—
—
—
300,000
(778)
299,222
Unsecured senior notes payable
3.80%
3.96
4/15/26
—
—
350,000
—
—
—
350,000
(899)
349,101
Unsecured senior notes payable
3.95%
4.13
1/15/27
—
—
—
350,000
—
—
350,000
(1,321)
348,679
Unsecured senior notes payable
3.95%
4.07
1/15/28
—
—
—
—
425,000
—
425,000
(1,523)
423,477
Unsecured senior notes payable
4.50%
4.60
7/30/29
—
—
—
—
—
300,000
300,000
(1,138)
298,862
Unsecured senior notes payable
2.75%
2.87
12/15/29
—
—
—
—
—
400,000
400,000
(2,269)
397,731
Unsecured senior notes payable
4.70%
4.81
7/1/30
—
—
—
—
—
450,000
450,000
(2,241)
447,759
Unsecured senior notes payable
4.90%
5.05
12/15/30
—
—
—
—
—
700,000
700,000
(5,121)
694,879
Unsecured senior notes payable
3.375%
3.48
8/15/31
—
—
—
—
—
750,000
750,000
(4,669)
745,331
Unsecured senior notes payable
2.00%
2.12
5/18/32
—
—
—
—
—
900,000
900,000
(7,428)
892,572
Unsecured senior notes payable
1.875%
1.97
2/1/33
—
—
—
—
—
1,000,000
1,000,000
(7,543)
992,457
Unsecured senior notes payable
2.95%
3.07
3/15/34
—
—
—
—
—
800,000
800,000
(7,613)
792,387
Unsecured senior notes payable
4.75%
4.88
4/15/35
—
—
—
—
—
500,000
500,000
(5,185)
494,815
Unsecured senior notes payable
5.25%
5.38
5/15/36
—
—
—
—
—
400,000
400,000
(4,280)
395,720
Unsecured senior notes payable
4.85%
4.93
4/15/49
—
—
—
—
—
300,000
300,000
(2,929)
297,071
Unsecured senior notes payable
4.00%
3.91
2/1/50
—
—
—
—
—
700,000
700,000
10,049
710,049
Unsecured senior notes payable
3.00%
3.08
5/18/51
—
—
—
—
—
850,000
850,000
(11,417)
838,583
Unsecured senior notes payable
3.55%
3.63
3/15/52
—
—
—
—
—
1,000,000
1,000,000
(13,892)
986,108
Unsecured senior notes payable
5.15%
5.26
4/15/53
—
—
—
—
—
500,000
500,000
(7,702)
492,298
Unsecured senior notes payable
5.625%
5.71
5/15/54
—
—
—
—
—
600,000
600,000
(6,801)
593,199
Unsecured debt weighted-average interest rate/
subtotal
3.84
—
600,000
650,000
350,000
625,000
10,150,000
12,375,000
(85,887)
12,289,113
Weighted-average interest rate/total
3.89%
$32
$600,034
$784,684
$350,038
$625,041
$10,150,438
$12,510,267
$(86,212)
$12,424,055
Balloon payments
$—
$600,000
$784,648
$350,000
$625,000
$10,150,068
$12,509,716
$—
$12,509,716
Principal amortization
32
34
36
38
41
370
551
(86,212)
(85,661)
Total debt
$32
$600,034
$784,684
$350,038
$625,041
$10,150,438
$12,510,267
$(86,212)
$12,424,055
Fixed-rate debt
$32
$600,034
$650,036
$350,038
$425,041
$10,150,438
$12,175,619
$(85,439)
$12,090,180
Variable-rate debt
—
—
134,648
—
200,000
—
334,648
(773)
333,875
Total debt
$32
$600,034
$784,684
$350,038
$625,041
$10,150,438
$12,510,267
$(86,212)
$12,424,055
Weighted-average stated rate on maturing debt
N/A
3.45%
3.80%
3.95%
4.47%
3.68%
(1)Represents the weighted-average interest rate as of the end of the applicable period, including amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.
(2)Reflects any extension options that we control.
(3)Represents a secured construction loan held by our consolidated real estate joint venture for 99 Coolidge Avenue, of which we own a 75.0% interest. As of June 30, 2024, this joint venture has $60.7 million available under existing lender
commitments. The interest rate shall be reduced from SOFR+2.70% to SOFR+2.10% over time upon the completion of certain leasing, construction, and financial covenant milestones.
(4)Refer to footnotes 2 through 4 under “Fixed-rate and variable-rate debt” in “Summary of Debt” for additional details. In July 2024, we executed an agreement with the lender group to amend and restate our unsecured senior line of credit to,
among other changes, extend the maturity date from January 22, 2028 to January 22, 2030, including extension options that we control. We expect that the amendment and restatement will become effective in September 2024 upon the
satisfaction of certain conditions.
Summary of Debt (continued)
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June 30, 2024
(Dollars in thousands)
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
53
This section contains additional details for sections throughout the Supplemental Information and the accompanying Earnings Press Release, as well as explanations and reconciliations of certain non-
GAAP financial measures and the reasons why we use these supplemental measures of performance and believe they provide useful information to investors. Additional detail can be found in our most recent
annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.
Adjusted EBITDA and Adjusted EBITDA margin
 
The following table reconciles net income (loss), the most directly comparable financial
measure calculated and presented in accordance with GAAP, to Adjusted EBITDA and calculates the
Adjusted EBITDA margin:
 
Three Months Ended
(Dollars in thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Net income (loss)
$94,049
$219,176
$(42,658)
$68,254
$133,705
Interest expense
45,789
40,840
31,967
11,411
17,072
Income taxes
1,182
1,764
1,322
1,183
2,251
Depreciation and amortization
290,720
287,554
285,246
269,370
273,555
Stock compensation expense
14,507
17,125
34,592
16,288
15,492
Gain on sales of real estate
—
(392)
(62,227)
—
(214,810)
Unrealized losses (gains) on non-real estate
investments
64,238
(29,158)
(19,479)
77,202
77,897
Impairment of real estate
30,763
—
271,890
20,649
168,575
Impairment of non-real estate investments
12,788
14,698
23,094
28,503
22,953
Adjusted EBITDA
$554,036
$551,607
$523,747
$492,860
$496,690
Total revenues
$766,734
$769,108
$757,216
$713,788
$713,900
Adjusted EBITDA margin
72%
72%
69%
69%
70%
We use Adjusted EBITDA as a supplemental performance measure of our operations, for
financial and operational decision-making, and as a supplemental means of evaluating period-to-period
comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes,
depreciation, and amortization (“EBITDA”), excluding stock compensation expense, gains or losses on
early extinguishment of debt, gains or losses on sales of real estate, impairments of real estate, and
significant termination fees. Adjusted EBITDA also excludes unrealized gains or losses and significant
realized gains or losses and impairments that result from our non-real estate investments. These non-
real estate investment amounts are classified in our consolidated statements of operations outside of
total revenues.
We believe Adjusted EBITDA provides investors with relevant and useful information as it
allows investors to evaluate the operating performance of our business activities without having to
account for differences recognized because of investing and financing decisions related to our real
estate and non-real estate investments, our capital structure, capital market transactions, and variances
resulting from the volatility of market conditions outside of our control. For example, we exclude gains or
losses on the early extinguishment of debt to allow investors to measure our performance independent
of our indebtedness and capital structure. We believe that adjusting for the effects of impairments and
gains or losses on sales of real estate, significant impairments and realized gains or losses on non-real
estate investments, and significant termination fees allows investors to evaluate performance from
period to period on a consistent basis without having to account for differences recognized because of
investing and financing decisions related to our real estate and non-real estate investments or other
corporate activities that may not be representative of the operating performance of our properties.
In addition, we believe that excluding charges related to stock compensation and unrealized
gains or losses facilitates for investors a comparison of our business activities across periods without the
volatility resulting from market forces outside of our control. Adjusted EBITDA has limitations as a
measure of our performance. Adjusted EBITDA does not reflect our historical expenditures or future
requirements for capital expenditures or contractual commitments. While Adjusted EBITDA is a relevant
measure of performance, it does not represent net income (loss) or cash flows from operations
calculated and presented in accordance with GAAP, and it should not be considered as an alternative to
those indicators in evaluating performance or liquidity.
In order to calculate the Adjusted EBITDA margin, we divide Adjusted EBITDA by total
revenues as presented in our consolidated statements of operations. We believe that this supplemental
performance measure provides investors with additional useful information regarding the profitability of
our operating activities.
We are not able to forecast fourth quarter net income without unreasonable effort and
therefore do not provide a reconciliation for Adjusted EBITDA on a forward-looking basis. This is due to
the inherent difficulty of forecasting the timing and/or amount of items that depend on market conditions
outside of our control, including the timing of dispositions, capital events, and financing decisions, as
well as quarterly components such as gain on sales of real estate, unrealized gains or losses on non-
real estate investments, impairment of real estate, and impairment of non-real estate investments. Our
attempt to predict these amounts may produce significant but inaccurate estimates, which would be
potentially misleading for our investors.
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Definitions and Reconciliations
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
54
Annual rental revenue
Annual rental revenue represents the annualized fixed base rental obligations, calculated in
accordance with GAAP, for leases in effect as of the end of the period, related to our operating
RSF. Annual rental revenue is presented using 100% of the annual rental revenue from our consolidated
properties and our share of annual rental revenue for our unconsolidated real estate joint ventures.
Annual rental revenue per RSF is computed by dividing annual rental revenue by the sum of 100% of
the RSF of our consolidated properties and our share of the RSF of properties held in unconsolidated
real estate joint ventures. As of June 30, 2024, approximately 94% of our leases (on an annual rental
revenue basis) were triple net leases, which require tenants to pay substantially all real estate taxes,
insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses
(including increases thereto) in addition to base rent. Annual rental revenue excludes these operating
expenses recovered from our tenants. Amounts recovered from our tenants related to these operating
expenses, along with base rent, are classified in income from rentals in our consolidated statements of
operations.
Capitalization rates
Capitalization rates are calculated based on net operating income and net operating income
(cash basis) annualized, excluding lease termination fees, on stabilized operating assets for the quarter
preceding the date on which the property is sold, or near-term prospective net operating income.
Capitalized interest
We capitalize interest cost as a cost of a project during periods for which activities necessary
to develop, redevelop, or reposition a project for its intended use are ongoing, provided that
expenditures for the asset have been made and interest cost has been incurred. Activities necessary to
develop, redevelop, or reposition a project include pre-construction activities such as entitlements,
permitting, design, site work, and other activities preceding commencement of construction of
aboveground building improvements. The advancement of pre-construction efforts is focused on
reducing the time required to deliver projects to prospective tenants. These critical activities add
significant value for future ground-up development and are required for the vertical construction of
buildings. If we cease activities necessary to prepare a project for its intended use, interest costs related
to such project are expensed as incurred.
Cash interest
Cash interest is equal to interest expense calculated in accordance with GAAP plus
capitalized interest, less amortization of loan fees and debt premiums (discounts). Refer to the definition
of fixed-charge coverage ratio for a reconciliation of interest expense, the most directly comparable
financial measure calculated and presented in accordance with GAAP, to cash interest.
Class A/A+ properties and AAA locations
Class A/A+ properties are properties clustered in AAA locations that provide innovative
tenants with highly dynamic and collaborative environments that enhance their ability to successfully
recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Class A/
A+ properties generally command higher annual rental rates than other classes of similar properties.
AAA locations are in close proximity to concentrations of specialized skills, knowledge, institutions, and
related businesses.
Development, redevelopment, and pre-construction
A key component of our business model is our disciplined allocation of capital to the
development and redevelopment of new Class A/A+ properties, and property enhancements identified
during the underwriting of certain acquired properties, located in collaborative life science mega
campuses in AAA innovation clusters. These projects are generally focused on providing high-quality,
generic, and reusable spaces that meet the real estate requirements of a wide range of tenants. Upon
completion, each value-creation project is expected to generate increases in rental income, net
operating income, and cash flows. Our development and redevelopment projects are generally in
locations that are highly desirable to high-quality entities, which we believe results in higher occupancy
levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.
Development projects generally consist of the ground-up development of generic and
reusable laboratory facilities. Redevelopment projects consist of the permanent change in use of
acquired office, warehouse, or shell space into laboratory space. We generally will not commence new
development projects for aboveground construction of new Class A/A+ laboratory space without first
securing significant pre-leasing for such space, except when there is solid market demand for high-
quality Class A/A+ properties.
Priority anticipated projects are those most likely to commence future ground-up development
or first-time conversion from non-laboratory space to laboratory space prior to our other future projects,
pending market conditions and leasing negotiations.
Pre-construction activities include entitlements, permitting, design, site work, and other
activities preceding commencement of construction of aboveground building improvements. The
advancement of pre-construction efforts is focused on reducing the time required to deliver projects to
prospective tenants. These critical activities add significant value for future ground-up development and
are required for the vertical construction of buildings. Ultimately, these projects will provide high-quality
facilities and are expected to generate significant revenue and cash flows.
Development, redevelopment, and pre-construction spending also includes the following
costs: (i) amounts to bring certain acquired properties up to market standard and/or other costs identified
during the acquisition process (generally within two years of acquisition) and (ii) permanent conversion
of space for highly flexible, move-in-ready laboratory space to foster the growth of promising early- and
growth-stage life science companies.
Revenue-enhancing and repositioning capital expenditures represent spending to reposition
or significantly change the use of a property, including through improvement in the asset quality from
Class B to Class A/A+.
Non-revenue-enhancing capital expenditures represent costs required to maintain the current
revenues of a stabilized property, including the associated costs for renewed and re-leased space.
Dividend payout ratio (common stock)
Dividend payout ratio (common stock) is the ratio of the absolute dollar amount of dividends
on our common stock (shares of common stock outstanding on the respective record dates multiplied by
the related dividend per share) to funds from operations attributable to Alexandria’s common
stockholders – diluted, as adjusted.
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Definitions and Reconciliations (continued)
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
55
Dividend yield
Dividend yield for the quarter represents the annualized quarter dividend divided by the
closing common stock price at the end of the quarter.
Fixed-charge coverage ratio
Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of
Adjusted EBITDA to cash interest and fixed charges. We believe that this ratio is useful to investors as a
supplemental measure of our ability to satisfy fixed financing obligations and preferred stock dividends.
Cash interest is equal to interest expense calculated in accordance with GAAP plus capitalized interest,
less amortization of loan fees and debt premiums (discounts).
The following table reconciles interest expense, the most directly comparable financial
measure calculated and presented in accordance with GAAP, to cash interest and computes fixed-
charge coverage ratio:
 
Three Months Ended
(Dollars in thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Adjusted EBITDA
$554,036
$551,607
$523,747
$492,860
$496,690
Interest expense
$45,789
$40,840
$31,967
$11,411
$17,072
Capitalized interest
81,039
81,840
89,115
96,119
91,674
Amortization of loan fees
(4,146)
(4,142)
(4,059)
(4,059)
(3,729)
Amortization of debt discounts
(328)
(318)
(309)
(306)
(304)
Cash interest and fixed charges
$122,354
$118,220
$116,714
$103,165
$104,713
Fixed-charge coverage ratio:
– quarter annualized
4.5x
4.7x
4.5x
4.8x
4.7x
– trailing 12 months
4.6x
4.7x
4.7x
4.9x
4.9x
We are not able to forecast fourth quarter net income without unreasonable effort and
therefore do not provide a reconciliation for fixed-charge coverage ratio on a forward-looking basis. This
is due to the inherent difficulty of forecasting the timing and/or amount of items that depend on market
conditions outside of our control, including the timing of dispositions, capital events, and financing
decisions, as well as quarterly components such as gain on sales of real estate, unrealized gains or
losses on non-real estate investments, impairment of real estate, and impairment of non-real estate
investments. Our attempt to predict these amounts may produce significant but inaccurate estimates,
which would be potentially misleading for our investors.
Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s
common stockholders
GAAP-basis accounting for real estate assets utilizes historical cost accounting and assumes
that real estate values diminish over time. In an effort to overcome the difference between real estate
values and historical cost accounting for real estate assets, the Nareit Board of Governors established
funds from operations as an improved measurement tool. Since its introduction, funds from operations
has become a widely used non-GAAP financial measure among equity REITs. We believe that funds
from operations is helpful to investors as an additional measure of the performance of an equity
REIT. Moreover, we believe that funds from operations, as adjusted, allows investors to compare our
performance to the performance of other real estate companies on a consistent basis, without having to
account for differences recognized because of real estate acquisition and disposition decisions,
financing decisions, capital structure, capital market transactions, variances resulting from the volatility
of market conditions outside of our control, or other corporate activities that may not be representative of
the operating performance of our properties.
The 2018 White Paper published by the Nareit Board of Governors (the “Nareit White Paper”)
defines funds from operations as net income (computed in accordance with GAAP), excluding gains or
losses on sales of real estate, and impairments of real estate, plus depreciation and amortization of
operating real estate assets, and after adjustments for our share of consolidated and unconsolidated
partnerships and real estate joint ventures. Impairments represent the write-down of assets when fair
value over the recoverability period is less than the carrying value due to changes in general market
conditions and do not necessarily reflect the operating performance of the properties during the
corresponding period.
We compute funds from operations, as adjusted, as funds from operations calculated in
accordance with the Nareit White Paper, excluding significant gains, losses, and impairments realized
on non-real estate investments, unrealized gains or losses on non-real estate investments, impairment
of real estate primarily consisting of pre-acquisition costs incurred in connection with acquisitions we
decided to no longer pursue, gains or losses on early extinguishment of debt, significant termination
fees, acceleration of stock compensation expense due to the resignations of executive officers, deal
costs, the income tax effect related to such items, and the amount of such items that is allocable to our
unvested restricted stock awards. We compute the amount that is allocable to our unvested restricted
stock awards using the two-class method. Under the two-class method, we allocate net income (after
amounts attributable to noncontrolling interests) to common stockholders and to unvested restricted
stock awards by applying the respective weighted-average shares outstanding during each quarter-to-
date and year-to-date period. This may result in a difference of the summation of the quarter-to-date and
year-to-date amounts. Neither funds from operations nor funds from operations, as adjusted, should be
considered as alternatives to net income (determined in accordance with GAAP) as indications of
financial performance, or to cash flows from operating activities (determined in accordance with GAAP)
as measures of liquidity, nor are they indicative of the availability of funds for our cash needs, including
our ability to make distributions.
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Definitions and Reconciliations (continued)
June 30, 2024
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024
56
Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s
common stockholders (continued)
The following table reconciles net income to funds from operations for the share of
consolidated real estate joint ventures attributable to noncontrolling interests and our share of
unconsolidated real estate joint ventures:
Noncontrolling Interest Share of
Consolidated Real Estate JVs
Our Share of Unconsolidated
Real Estate JVs
June 30, 2024
June 30, 2024
(In thousands)
Three Months
Ended
Six Months
Ended
Three Months
Ended
Six Months
Ended
Net income
$47,347
$95,978
$130
$285
Depreciation and amortization of
real estate assets
31,364
62,268
1,068
2,102
Funds from operations
$78,711
$158,246
$1,198
$2,387
Gross assets
Gross assets are calculated as total assets plus accumulated depreciation:
(In thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Total assets
$37,847,865
$37,699,046
$36,771,402
$36,783,293
$36,659,257
Accumulated depreciation
5,457,414
5,216,857
4,985,019
4,856,436
4,646,833
Gross assets
$43,305,279
$42,915,903
$41,756,421
$41,639,729
$41,306,090
Initial stabilized yield (unlevered)
Initial stabilized yield is calculated as the estimated amounts of net operating income at
stabilization divided by our investment in the property. Our initial stabilized yield excludes the benefit of
leverage. Our cash rents related to our value-creation projects are generally expected to increase over
time due to contractual annual rent escalations. Our estimates for initial stabilized yields, initial stabilized
yields (cash basis), and total costs at completion represent our initial estimates at the commencement of
the project. We expect to update this information upon completion of the project, or sooner if there are
significant changes to the expected project yields or costs.
•Initial stabilized yield reflects rental income, including contractual rent escalations and any rent
concessions over the term(s) of the lease(s), calculated on a straight-line basis.
•Initial stabilized yield (cash basis) reflects cash rents at the stabilization date after initial rental
concessions, if any, have elapsed and our total cash investment in the property.
Investment-grade or publicly traded large cap tenants
Investment-grade or publicly traded large cap tenants represent tenants that are investment-
grade rated or publicly traded companies with an average daily market capitalization greater than $10
billion for the twelve months ended June 30, 2024, as reported by Bloomberg Professional Services.
Credit ratings from Moody’s Investors Service and S&P Global Ratings reflect credit ratings of the
tenant’s parent entity, and there can be no assurance that a tenant’s parent entity will satisfy the tenant’s
lease obligation upon such tenant’s default. We monitor the credit quality and related material changes
of our tenants. Material changes that cause a tenant’s market capitalization to decrease below $10
billion, which are not immediately reflected in the twelve-month average, may result in their exclusion
from this measure.
Investments
We hold investments in publicly traded companies and privately held entities primarily
involved in the life science industries. We recognize, measure, present, and disclose these investments
as follows:
Statements of Operations
Balance Sheet
Gains and Losses
Carrying Amount
Unrealized
Realized
Difference between
proceeds received upon
disposition and historical
cost
Publicly traded
companies
Fair value
Changes in fair
value
Privately held entities
without readily
determinable fair
values that:
Report NAV
Fair value, using NAV
as a practical
expedient
Changes in NAV, as
a practical expedient
to fair value
Do not report NAV
Cost, adjusted for
observable price
changes and
impairments(1)
Observable price
changes(1)
Impairments to reduce costs
to fair value, which result in
an adjusted cost basis and
the differences between
proceeds received upon
disposition and adjusted or
historical cost
Equity method
investments
Contributions,
adjusted for our share
of the investee’s
earnings or losses,
less distributions
received, reduced by
other-than-temporary
impairments
Our share of
unrealized gains or
losses reported by
the investee
Our share of realized gains
or losses reported by the
investee, and other-than-
temporary impairments
(1)An observable price is a price observed in an orderly transaction for an identical or similar investment of the same
issuer. Observable price changes result from, among other things, equity transactions for the same issuer with
similar rights and obligations executed during the reporting period, including subsequent equity offerings or other
reported equity transactions related to the same issuer.
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57
Investments in real estate
The following table reconciles our investments in real estate as of June 30, 2024:
(In thousands)
Investments in
Real Estate
Gross investments in real estate
$38,131,253
Less: accumulated depreciation
(5,457,414)
Investments in real estate
$32,673,839
The following table presents our value-creation pipeline of new Class A/A+ development and
redevelopment projects, excluding properties held for sale, as a percentage of gross assets as of
June 30, 2024:
Percentage of
Gross Assets
Under construction projects and one committed near-term project expected to commence
construction in the next two years (61% leased/negotiating)
9%
Income-producing/potential cash flows/covered land play(1)
7%
Land
5%
(1)Includes projects with existing buildings that are generating or can generate operating cash flows. Also includes
development rights associated with existing operating campuses. These projects aggregated 1.0% of annual
rental revenue as of June 30, 2024 and are included in our industry mix chart as targeted for a future change in
use to laboratory space. Refer to “High-quality and diverse client base” in the Supplemental Information for
additional details.
Space Intentionally Blank
The square footage presented in the table below is classified as operating as of June 30,
2024. These lease expirations or vacant space at recently acquired properties represent future
opportunities for which we have the intent, subject to market conditions and leasing, to commence first-
time conversion from non-laboratory space to laboratory space, or to commence future ground-up
development:
Dev/
Redev
RSF of Lease Expirations Targeted for
Development and Redevelopment
Property/Submarket
2024
2025
Thereafter(1)
Total
Committed near-term project:
4161 Campus Point Court/University Town Center
Dev
—
159,884
—
159,884
Priority anticipated projects:
311 Arsenal Street/Cambridge/Inner Suburbs
Redev
—
25,312
—
25,312
269 East Grand Avenue/South San Francisco
Redev
107,250
—
—
107,250
3301 Monte Villa Parkway/Bothell
Redev
—
50,552
—
50,552
1020 Red River Street/Austin
Redev
—
126,034
—
126,034
107,250
201,898
—
309,148
Future projects:
100 Edwin H. Land Boulevard/Cambridge
Dev
104,500
—
—
104,500
446, 458, 500, and 550 Arsenal Street/Cambridge/
Inner Suburbs
Dev
—
—
376,698
376,698
Other/Greater Boston
Redev
—
—
167,549
167,549
1122 and 1150 El Camino Real/South San Francisco
Dev
—
—
375,232
375,232
3875 Fabian Way/Greater Stanford
Dev
—
—
228,000
228,000
2100, 2200, and 2400 Geng Road/Greater Stanford
Dev
—
—
78,501
78,501
960 Industrial Road/Greater Stanford
Dev
—
—
112,590
112,590
Campus Point by Alexandria/University Town Center
Dev
226,144
109,164
—
335,308
Sequence District by Alexandria/Sorrento Mesa
Dev/
Redev
—
—
686,290
686,290
830 4th Avenue South/SoDo
Dev
—
—
42,380
42,380
Other/Seattle
Dev
—
—
76,559
76,559
100 Capitola Drive/Research Triangle
Dev
—
—
34,527
34,527
1001 Trinity Street/Austin
Dev
—
72,938
—
72,938
Canada
Redev
—
—
247,743
247,743
330,644
182,102
2,426,069
2,938,815
437,894
543,884
2,426,069
3,407,847
(1)Includes vacant square footage as of June 30, 2024.
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58
Joint venture financial information
We present components of balance sheet and operating results information related to our real
estate joint ventures, which are not presented, or intended to be presented, in accordance with GAAP.
We present the proportionate share of certain financial line items as follows: (i) for each real estate joint
venture that we consolidate in our financial statements, which are controlled by us through contractual
rights or majority voting rights, but of which we own less than 100%, we apply the noncontrolling interest
economic ownership percentage to each financial item to arrive at the amount of such cumulative
noncontrolling interest share of each component presented; and (ii) for each real estate joint venture that
we do not control and do not consolidate, and are instead controlled jointly or by our joint venture
partners through contractual rights or majority voting rights, we apply our economic ownership
percentage to each financial item to arrive at our proportionate share of each component presented.
The components of balance sheet and operating results information related to our real estate
joint ventures do not represent our legal claim to those items. For each entity that we do not wholly own,
the joint venture agreement generally determines what equity holders can receive upon capital events,
such as sales or refinancing, or in the event of a liquidation. Equity holders are normally entitled to their
respective legal ownership of any residual cash from a joint venture only after all liabilities, priority
distributions, and claims have been repaid or satisfied.
We believe that this information can help investors estimate the balance sheet and operating
results information related to our partially owned entities. Presenting this information provides a
perspective not immediately available from consolidated financial statements and one that can
supplement an understanding of the joint venture assets, liabilities, revenues, and expenses included in
our consolidated results.
The components of balance sheet and operating results information related to our real estate
joint ventures are limited as an analytical tool as the overall economic ownership interest does not
represent our legal claim to each of our joint ventures’ assets, liabilities, or results of operations. In
addition, joint venture financial information may include financial information related to the
unconsolidated real estate joint ventures that we do not control. We believe that in order to facilitate for
investors a clear understanding of our operating results and our total assets and liabilities, joint venture
financial information should be examined in conjunction with our consolidated statements of operations
and balance sheets. Joint venture financial information should not be considered an alternative to our
consolidated financial statements, which are presented and prepared in accordance with GAAP.
Key items included in net income attributable to Alexandria’s common stockholders
We present a tabular comparison of items, whether gain or loss, that may facilitate a high-
level understanding of our results and provide context for the disclosures included in this Supplemental
Information, our most recent annual report on Form 10-K, and our subsequent quarterly reports on Form
10-Q. We believe that such tabular presentation promotes a better understanding for investors of the
corporate-level decisions made and activities performed that significantly affect comparison of our
operating results from period to period. We also believe that this tabular presentation will supplement for
investors an understanding of our disclosures and real estate operating results. Gains or losses on sales
of real estate and impairments of assets classified as held for sale are related to corporate-level
decisions to dispose of real estate. Gains or losses on early extinguishment of debt are related to
corporate-level financing decisions focused on our capital structure strategy. Significant realized and
unrealized gains or losses on non-real estate investments, impairments of real estate and non-real
estate investments, and acceleration of stock compensation expense due to the resignation of an
executive officer are not related to the operating performance of our real estate assets as they result
from strategic, corporate-level non-real estate investment decisions and external market conditions.
Impairments of non-real estate investments are not related to the operating performance of our real
estate as they represent the write-down of non-real estate investments when their fair values decrease
below their respective carrying values due to changes in general market or other conditions outside of
our control. Significant items, whether a gain or loss, included in the tabular disclosure for current
periods are described in further detail in this Supplemental Information and accompanying Earnings
Press Release.
Mega campus
Mega campuses are cluster campuses that consist of approximately 1 million RSF or more,
including operating, active development/redevelopment, and land RSF less operating RSF expected to
be demolished. The following table reconciles our annual rental revenue and value-creation pipeline
RSF as of June 30, 2024:
(Dollars in thousands)
Annual Rental
Revenue
Value-Creation
Pipeline RSF
Mega campus
$1,649,514
21,944,200
Non-mega campus
567,461
10,013,556
Total
$2,216,975
31,957,756
Mega campus as a percentage of annual rental revenue and
of total value-creation pipeline RSF
74%
69%
Net cash provided by operating activities after dividends
Net cash provided by operating activities after dividends includes the deduction for
distributions to noncontrolling interests. For purposes of this calculation, changes in operating assets
and liabilities are excluded as they represent timing differences.
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59
Net debt and preferred stock to Adjusted EBITDA
Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we
believe is useful to investors as a supplemental measure of evaluating our balance sheet leverage. Net
debt and preferred stock is equal to the sum of total consolidated debt less cash, cash equivalents, and
restricted cash, plus preferred stock outstanding as of the end of the period. Refer to the definition of
Adjusted EBITDA and Adjusted EBITDA margin for further information on the calculation of Adjusted
EBITDA.
The following table reconciles debt to net debt and preferred stock and computes the ratio to
Adjusted EBITDA:
(Dollars in thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Secured notes payable
$134,942
$130,050
$119,662
$109,110
$91,939
Unsecured senior notes payable
12,089,561
12,087,113
11,096,028
11,093,725
11,091,424
Unsecured senior line of credit and
commercial paper
199,552
—
99,952
—
—
Unamortized deferred financing costs
81,942
84,198
76,329
78,496
80,663
Cash and cash equivalents
(561,021)
(722,176)
(618,190)
(532,390)
(924,370)
Restricted cash
(4,832)
(9,519)
(42,581)
(35,321)
(35,920)
Preferred stock
—
—
—
—
—
Net debt and preferred stock
$11,940,144
$11,569,666
$10,731,200
$10,713,620
$10,303,736
Adjusted EBITDA:
– quarter annualized
$2,216,144
$2,206,428
$2,094,988
$1,971,440
$1,986,760
– trailing 12 months
$2,122,250
$2,064,904
$1,997,518
$1,935,505
$1,895,336
Net debt and preferred stock to Adjusted EBITDA:
– quarter annualized
5.4x
5.2x
5.1x
5.4x
5.2x
– trailing 12 months
5.6x
5.6x
5.4x
5.5x
5.4x
We are not able to forecast fourth quarter net income without unreasonable effort and
therefore do not provide a reconciliation for net debt and preferred stock to Adjusted EBITDA on a
forward-looking basis. This is due to the inherent difficulty of forecasting the timing and/or amount of
items that depend on market conditions outside of our control, including the timing of dispositions,
capital events, and financing decisions, as well as quarterly components such as gain on sales of real
estate, unrealized gains or losses on non-real estate investments, impairment of real estate, and
impairment of non-real estate investments. Our attempt to predict these amounts may produce
significant but inaccurate estimates, which would be potentially misleading for our investors.
Net operating income, net operating income (cash basis), and operating margin
The following table reconciles net income (loss) to net operating income and net operating
income (cash basis) and computes operating margin:
Three Months Ended
Six Months Ended
(Dollars in thousands)
6/30/24
6/30/23
6/30/24
6/30/23
Net income
$94,049
$133,705
$313,225
$255,398
Equity in earnings of unconsolidated real estate
joint ventures
(130)
(181)
(285)
(375)
General and administrative expenses
44,629
45,882
91,684
94,078
Interest expense
45,789
17,072
86,629
30,826
Depreciation and amortization
290,720
273,555
578,274
538,857
Impairment of real estate
30,763
168,575
30,763
168,575
Gain on sales of real estate
—
(214,810)
(392)
(214,810)
Investment loss
43,660
78,268
376
123,379
Net operating income
549,480
502,066
1,100,274
995,928
Straight-line rent revenue
(48,338)
(29,335)
(96,589)
(62,526)
Amortization of acquired below-market leases
(22,515)
(24,789)
(52,855)
(46,425)
Net operating income (cash basis)
$478,627
$447,942
$950,830
$886,977
Net operating income (cash basis) – annualized
$1,914,508
$1,791,768
$1,901,660
$1,773,954
Net operating income (from above)
$549,480
$502,066
$1,100,274
$995,928
Total revenues
$766,734
$713,900
$1,535,842
$1,414,695
Operating margin
72%
70%
72%
70%
Net operating income is a non-GAAP financial measure calculated as net income (loss), the
most directly comparable financial measure calculated and presented in accordance with GAAP,
excluding equity in the earnings of our unconsolidated real estate joint ventures, general and
administrative expenses, interest expense, depreciation and amortization, impairments of real estate,
gains or losses on early extinguishment of debt, gains or losses on sales of real estate, and investment
income or loss. We believe net operating income provides useful information to investors regarding our
financial condition and results of operations because it primarily reflects those income and expense
items that are incurred at the property level. Therefore, we believe net operating income is a useful
measure for investors to evaluate the operating performance of our consolidated real estate assets. Net
operating income on a cash basis is net operating income adjusted to exclude the effect of straight-line
rent and amortization of acquired above- and below-market lease revenue adjustments required by
GAAP. We believe that net operating income on a cash basis is helpful to investors as an additional
measure of operating performance because it eliminates straight-line rent revenue and the amortization
of acquired above- and below-market leases.
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60
Net operating income, net operating income (cash basis), and operating margin (continued)
Furthermore, we believe net operating income is useful to investors as a performance
measure of our consolidated properties because, when compared across periods, net operating income
reflects trends in occupancy rates, rental rates, and operating costs, which provide a perspective not
immediately apparent from net income or loss. Net operating income can be used to measure the initial
stabilized yields of our properties by calculating net operating income generated by a property divided by
our investment in the property. Net operating income excludes certain components from net income in
order to provide results that are more closely related to the results of operations of our properties. For
example, interest expense is not necessarily linked to the operating performance of a real estate asset
and is often incurred at the corporate level rather than at the property level. In addition, depreciation and
amortization, because of historical cost accounting and useful life estimates, may distort comparability of
operating performance at the property level. Impairments of real estate have been excluded in deriving
net operating income because we do not consider impairments of real estate to be property-level
operating expenses. Impairments of real estate relate to changes in the values of our assets and do not
reflect the current operating performance with respect to related revenues or expenses. Our
impairments of real estate represent the write-down in the value of the assets to the estimated fair value
less cost to sell. These impairments result from investing decisions or a deterioration in market
conditions. We also exclude realized and unrealized investment gain or loss, which results from
investment decisions that occur at the corporate level related to non-real estate investments in publicly
traded companies and certain privately held entities. Therefore, we do not consider these activities to be
an indication of operating performance of our real estate assets at the property level. Our calculation of
net operating income also excludes charges incurred from changes in certain financing decisions, such
as losses on early extinguishment of debt, as these charges often relate to corporate strategy. Property
operating expenses included in determining net operating income primarily consist of costs that are
related to our operating properties, such as utilities, repairs, and maintenance; rental expense related to
ground leases; contracted services, such as janitorial, engineering, and landscaping; property taxes and
insurance; and property-level salaries. General and administrative expenses consist primarily of
accounting and corporate compensation, corporate insurance, professional fees, rent, and supplies that
are incurred as part of corporate office management. We calculate operating margin as net operating
income divided by total revenues.
We believe that in order to facilitate for investors a clear understanding of our operating
results, net operating income should be examined in conjunction with net income or loss as presented in
our consolidated statements of operations. Net operating income should not be considered as an
alternative to net income or loss as an indication of our performance, nor as an alternative to cash flows
as a measure of our liquidity or our ability to make distributions.
Operating statistics
We present certain operating statistics related to our properties, including number of
properties, RSF, occupancy percentage, leasing activity, and contractual lease expirations as of the end
of the period. We believe these measures are useful to investors because they facilitate an
understanding of certain trends for our properties. We compute the number of properties, RSF,
occupancy percentage, leasing activity, and contractual lease expirations at 100% for all properties in
which we have an investment, including properties owned by our consolidated and unconsolidated real
estate joint ventures. For operating metrics based on annual rental revenue, refer to the definition of
annual rental revenue herein.
Same property comparisons
As a result of changes within our total property portfolio during the comparative periods
presented, including changes from assets acquired or sold, properties placed into development or
redevelopment, and development or redevelopment properties recently placed into service, the
consolidated total income from rentals, as well as rental operating expenses in our operating results, can
show significant changes from period to period. In order to supplement an evaluation of our results of
operations over a given quarterly or annual period, we analyze the operating performance for all
consolidated properties that were fully operating for the entirety of the comparative periods presented,
referred to as same properties. We separately present quarterly and year-to-date same property results
to align with the interim financial information required by the SEC in our management’s discussion and
analysis of our financial condition and results of operations. These same properties are analyzed
separately from properties acquired subsequent to the first day in the earliest comparable quarterly or
year-to-date period presented, properties that underwent development or redevelopment at any time
during the comparative periods, unconsolidated real estate joint ventures, properties classified as held
for sale, and corporate entities (legal entities performing general and administrative functions), which are
excluded from same property results. Additionally, termination fees, if any, are excluded from the results
of same properties.
Space Intentionally Blank
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61
Same property comparisons (continued)
The following table reconciles the number of same properties to total properties for the six
months ended June 30, 2024:
Redevelopment – placed into
Development – under construction
Properties
service after January 1, 2023
Properties
201 Brookline Avenue
1
20400 Century Boulevard
1
1150 Eastlake Avenue East
1
140 First Street
1
9820 Darnestown Road
1
2400 Ellis Road, 40 Moore Drive, and 14
TW Alexander Drive
3
99 Coolidge Avenue
1
500 North Beacon Street and 4 Kingsbury
Avenue
2
9601 and 9603 Medical Center Drive
2
7
9808 Medical Center Drive
1
Acquisitions after January 1, 2023
Properties
1450 Owens Street
1
Other
5
230 Harriet Tubman Way
1
5
4155 Campus Point Court
1
Unconsolidated real estate JVs
4
10935, 10945, and 10955 Alexandria
Way
3
Properties held for sale
5
Total properties excluded from same
properties
62
10075 Barnes Canyon Road
1
421 Park Drive
1
Same properties
346
4135 Campus Point Court
1
Total properties in North America as of
June 30, 2024
408
16
Development – placed into
service after January 1, 2023
Properties
751 Gateway Boulevard
1
15 Necco Street
1
325 Binney Street
1
6040 George Watts Hill Drive
1
9810 Darnestown Road
1
5
Redevelopment – under construction
Properties
840 Winter Street
1
40, 50, and 60 Sylvan Road
3
Alexandria Center® for Advanced
Technologies – Monte Villa Parkway
6
651 Gateway Boulevard
1
401 Park Drive
1
8800 Technology Forest Place
1
311 Arsenal Street
1
Canada
4
Other
2
20
Stabilized occupancy date
The stabilized occupancy date represents the estimated date on which the project is expected
to reach occupancy of 95% or greater.
Tenant recoveries
Tenant recoveries represent revenues comprising reimbursement of real estate taxes,
insurance, utilities, repairs and maintenance, common area expenses, and other operating expenses
and earned in the period during which the applicable expenses are incurred and the tenant’s obligation
to reimburse us arises.
We classify rental revenues and tenant recoveries generated through the leasing of real
estate assets within revenues in income from rentals in our consolidated statements of operations. We
provide investors with a separate presentation of rental revenues and tenant recoveries in “Same
property performance” in this Supplemental Information because we believe it promotes investors’
understanding of our operating results. We believe that the presentation of tenant recoveries is useful to
investors as a supplemental measure of our ability to recover operating expenses under our triple net
leases, including recoveries of utilities, repairs and maintenance, insurance, property taxes, common
area expenses, and other operating expenses, and of our ability to mitigate the effect to net income for
any significant variability to components of our operating expenses.
The following table reconciles income from rentals to tenant recoveries:
Three Months Ended
Six Months Ended
(In thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Income from rentals
$755,162
$755,551
$742,637
$707,531
$704,339
$1,510,713
$1,392,288
Rental revenues
(576,835)
(581,400)
(561,428)
(526,352)
(537,889)
(1,158,235)
(1,056,191)
Tenant recoveries
$178,327
$174,151
$181,209
$181,179
$166,450
$352,478
$336,097
Total equity capitalization
Total equity capitalization is equal to the outstanding shares of common stock multiplied by the
closing price on the last trading day at the end of each period presented.
Total market capitalization
Total market capitalization is equal to the sum of total equity capitalization and total debt.
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62
Unencumbered net operating income as a percentage of total net operating income
Unencumbered net operating income as a percentage of total net operating income is a non-
GAAP financial measure that we believe is useful to investors as a performance measure of the results
of operations of our unencumbered real estate assets as it reflects those income and expense items that
are incurred at the unencumbered property level. Unencumbered net operating income is derived from
assets classified in continuing operations, which are not subject to any mortgage, deed of trust, lien, or
other security interest, as of the period for which income is presented.
The following table summarizes unencumbered net operating income as a percentage of total
net operating income:
 
Three Months Ended
(Dollars in thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
Unencumbered net operating income
$544,268
$546,830
$533,382
$495,012
$500,923
Encumbered net operating income
5,212
3,964
1,108
1,089
1,143
Total net operating income
$549,480
$550,794
$534,490
$496,101
$502,066
Unencumbered net operating income as a
percentage of total net operating income
99.1%
99.3%
99.8%
99.8%
99.8%
Weighted-average interest rate for capitalization of interest
The weighted-average interest rate required for calculating capitalization of interest pursuant
to GAAP represents a weighted-average rate as of the end of the applicable period, based on the rates
applicable to borrowings outstanding during the period, including expense/income related to interest rate
hedge agreements, amortization of loan fees, amortization of debt premiums (discounts), and other bank
fees. A separate calculation is performed to determine our weighted-average interest rate for
capitalization for each month. The rate will vary each month due to changes in variable interest rates,
outstanding debt balances, the proportion of variable-rate debt to fixed-rate debt, the amount and terms
of interest rate hedge agreements, and the amount of loan fee and premium (discount) amortization.
Space Intentionally Blank
Weighted-average shares of common stock outstanding – diluted
From time to time, we enter into capital market transactions, including forward equity sales
agreements (“Forward Agreements”), to fund acquisitions, to fund construction of our highly leased
development and redevelopment projects, and for general working capital purposes. We are required to
consider the potential dilutive effect of our Forward Agreements under the treasury stock method while
the Forward Agreements are outstanding. As of June 30, 2024, we had Forward Agreements
outstanding to sell an aggregate of 230 thousand shares of common stock.
The weighted-average shares of common stock outstanding used in calculating EPS – diluted,
FFO per share – diluted, and FFO per share – diluted, as adjusted, during each period are calculated as
follows. Also shown are the weighted-average unvested shares associated with restricted stock awards
used in calculating amounts allocable to unvested stock award holders for each of the respective
periods presented below:
Three Months Ended
Six Months Ended
(In thousands)
6/30/24
3/31/24
12/31/23
9/30/23
6/30/23
6/30/24
6/30/23
Basic shares for earnings per
share
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Forward Agreements
—
—
—
—
—
—
—
Diluted shares for earnings
per share
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Basic shares for funds from
operations per share and
funds from operations per
share, as adjusted
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Forward Agreements
—
—
—
—
—
—
—
Diluted shares for funds from
operations per share and
funds from operations per
share, as adjusted
172,013
171,949
171,096
170,890
170,864
171,981
170,824
Weighted-average unvested
restricted shares used in
calculating the allocations
of net income, funds from
operations, and funds from
operations, as adjusted
2,878
2,987
2,734
2,124
2,163
2,933
2,219
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Definitions and Reconciliations (continued)
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63