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Published: 2023-10-23 16:08:10 ET

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EX-99.1 2 a3q23ex991supp.htm EX-99.1 Document


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023




Table of Contents
September 30, 2023

COMPANY HIGHLIGHTS

Page

Page

Our Mission and Cluster Model

Environmental, Social, and Governance Matters

EARNINGS PRESS RELEASE

Page

Page

Third Quarter Ended September 30, 2023 Financial and Operating Results

Earnings Call Information and About the Company

Consolidated Statements of Operations

Consolidated Balance Sheets

Dispositions and Sales of Partial Interests

Funds From Operations and Funds From Operations per Share

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

High-Quality and Diverse Client Base in AAA Locations

Recent Deliveries

Current Projects

Internal Growth

Summary of Pipeline

Key Operating Metrics

Construction Spending and Capitalization of Interest

Same Property Performance

Joint Venture Financial Information

Leasing Activity

Balance Sheet Management

Contractual Lease Expirations

Key Credit Metrics

Summary of Properties and Occupancy

Summary of Debt

Property Listing

Definitions and Reconciliations

Definitions and Reconciliations


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Source: S&P Global Market Intelligence. Assumes reinvestment of dividends.

(1)Alexandria’s IPO priced at $20.00 per share on May 27, 1997.

(2)REITs included in the FTSE Nareit Equity Health Care Index for which total stockholder return information since May 1997 is not available are not presented.


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(1)Source: YCharts. Based on aggregate market capitalization for the life science industry, encompassing biotechnology companies, drug manufacturers, and diagnostics and research companies as of June 16, 2023.

(2)Source: Evaluate Pharma, October 2023.

(3)Source: PitchBook, BioCentury, and NASDAQ. Public Markets includes IPOs, follow-ons, and public equity financings.

(4)Source: Congressional Research Service, “National Institutes of Health (NIH) Funding: FY1996-FY2024,” updated May 17, 2023. National Science Foundation (NSF).

(5)Source: The Giving Institute, “Giving USA 2023: The Annual Report on Philanthropy for the Year 2022.”


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Refer to “Net operating income” in the “Definitions and reconciliations” of our Supplemental Information for additional details and its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.

(1)Our share of annual incremental net operating income primarily commencing from 4Q23 through 3Q26 is $491 million.

(2)Represents projects under construction aggregating 5.6 million RSF and two near-term projects aggregating 0.8 million RSF expected to commence construction during the next three quarters after September 30, 2023.


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Note: RSF amounts as of September 30, 2023. Refer to “Competitive supply” in the “Definitions and reconciliations” of our Supplemental Information for additional information.


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Note: RSF amounts as of September 30, 2023. Refer to “Competitive supply” in the “Definitions and reconciliations” of our Supplemental Information for additional information.


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Note: RSF amounts as of September 30, 2023. Refer to “Competitive supply” in the “Definitions and reconciliations” of our Supplemental Information for additional information.

(1)Includes active development, active redevelopment, and near-term projects expected to commence construction in the next three quarters.


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Note: RSF amounts as of September 30, 2023. Refer to “Competitive supply” in the “Definitions and reconciliations” of our Supplemental Information for additional information.

(1)Represents a single- or multi-tenant project expanding our existing mega campus, which will be 100% funded by our joint venture partner. We are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants.


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Note: RSF amounts as of September 30, 2023. Refer to “Competitive supply” in the “Definitions and reconciliations” of our Supplemental Information for additional information.


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Note: RSF amounts as of September 30, 2023. Refer to “Competitive supply” in the “Definitions and reconciliations” of our Supplemental Information for additional information.

(1)Includes active development projects and near-term projects expected to commence construction in the next three quarters.


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As of September 30, 2023.

(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 as of September 30, 2023.

(2)Quarter annualized. Refer to “Net debt and preferred stock to Adjusted EBITDA” in the “Definitions and reconciliations” of our Supplemental Information for additional details.


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Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s common stockholders” in the “Definitions and reconciliations” of our Supplemental Information for additional details.


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Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s common stockholders” in the “Definitions and reconciliations” of our Supplemental Information for additional details.

(1)Represents the midpoint of our guidance range for 2023 funds from operations per share – diluted, as adjusted, as of October 23, 2023.


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As of September 30, 2023, except for tenant collections, which is presented as of October 23, 2023.

(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. Refer to “Annual rental revenue” and “Investment-grade or publicly traded large cap tenants” in the “Definitions and reconciliations” of our Supplemental Information for additional details.

(2)Represents annual rental revenue currently generated from space that is targeted for a future change in use, including 1.1% of total annual rental revenue that is generated from covered land play projects for future development opportunities. The weighted-average remaining term of these leases is 4.1 years.

(3)Our “Other” tenants, which represent an aggregate of 4.0% of our annual rental revenue, 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.

(4)Represents annual rental revenue in effect as of September 30, 2023. Refer to “Annual rental revenue” in the “Definitions and reconciliations” of our Supplemental Information for additional details.


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(1)Represents tenant rents and receivables collected for each period end as of each quarter’s respective earnings release date.


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(1)Represents the midpoint of our guidance range for 2023 occupancy percentage in North America as of October 23, 2023. Refer to “Guidance” in our Earnings Press Release for additional details.

(2)Represents occupancy percentage of operating properties in North America as of each period end.


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Note: Non-revenue-enhancing capital expenditures include all additions to real estate except for costs related to ground-up development or first-time conversion of non-laboratory space to laboratory space through redevelopment. Refer to “Development, redevelopment, and pre-construction” in the “Definitions and reconciliations” of our Supplemental Information for additional details.


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Dollars represent sales price per RSF, and percentages represent capitalization rates calculated based on net operating income (cash basis) annualized. Refer to “Capitalization rates” in the “Definitions and reconciliations” of our Supplemental Information for additional details.

(1)Represents sale of our entire interest in the properties.

(2)This asset is under construction and will not be delivered until the end of 2023, with cash flow commencing in mid-2024. Amount per RSF represents the estimated value per RSF upon completion of the asset.


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(1)Based on a closing stock price on September 30, 2023 of $100.10 and the annualized dividend declared for the three months ended September 30, 2023 of $1.24 per common share. Refer to “Dividend yield” in the “Definitions and reconciliations” of our Supplemental Information for additional details.

(2)Represents the years ended December 31, 2019 through 2022 and the three months ended September 30, 2023 annualized.

(3)Represents common stock dividend declared for the three months ended September 30, 2023 annualized.


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Note: RSF amounts as of September 30, 2023.


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Note: RSF amounts as of September 30, 2023.


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As of September 30, 2023.

(1)Refer to “Key credit metrics” in our Supplemental Information for additional details.

(2)Refer to “Annual rental revenue” and “Investment-grade or publicly traded large cap tenants” in the “Definitions and reconciliations” of our Supplemental Information for additional details.


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(1)Reflects current score for Alexandria and latest scores available for the FTSE Nareit All REITs Index companies from Bloomberg Professional Services as of September 30, 2023.

(2)Reflects current score for Alexandria and latest scores available for the FTSE Nareit All REITs Index companies on ISS’s website as of September 30, 2023.


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Environmental data for 2022 reflected in the chart above received independent limited assurance from DNV Business Assurance USA, Inc. The Independent Assurance Statement from DNV is available at www.are.com/esg.html.

(1)2025 environmental goals relative to a 2015 baseline on a like-for-like basis for buildings in operation that Alexandria directly manages. The carbon emissions reduction goal relates to our Scope 1 and Scope 2 emissions.

(2)2025 environmental goal for buildings in operation that Alexandria indirectly and directly manages.


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Alexandria Real Estate Equities, Inc. Reports:

3Q23 and YTD 3Q23 Net Income per Share – Diluted of $0.13 and $1.08, respectively; and

3Q23 and YTD 3Q23 FFO per Share – Diluted, As Adjusted, of $2.26 and $6.69, respectively

PASADENA, Calif. – October 23, 2023 – Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the third quarter ended September 30, 2023.


Key highlights															YTD
Operating results			3Q23						3Q22						3Q23						3Q22
Total revenues:
In millions			$	713.8					$	659.9					$	2,128.5					$	1,918.7
Growth			8.2%												10.9%
Net income attributable to Alexandria’s common stockholders – diluted
In millions			$	21.9					$	341.4					$	184.4					$	461.5
Per share			$	0.13					$	2.11					$	1.08					$	2.88
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted
In millions			$	386.4					$	344.7					$	1,142.5					$	1,008.1
Per share			$	2.26					$	2.13					$	6.69					$	6.28

An operationally excellent, industry-leading REIT with a high-quality, diverse client base of over 800 tenants to support growing revenues, stable cash flows, and strong margins


Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants						49		%
Sustained strength in tenant collections:
Low tenant receivables as of September 30, 2023						$	6.9		million
October 2023 tenant rents and receivables collected as of October 23, 2023						99.7		%
3Q23 tenant rents and receivables collected as of October 23, 2023						99.9		%

Occupancy of operating properties in North America as of September 30, 2023						93.7		%

Adjusted EBITDA margin						69		%
Weighted-average remaining lease term as of September 30, 2023:
Top 20 tenants						8.9			years
All tenants						7.0			years

Solid leasing volume and rental rate increases and long lease terms

•Solid leasing volume during 3Q23 aggregating 867,582 RSF, despite minimal remaining contractual lease expirations for 2023 aggregating 622,654 RSF available for lease as of the beginning of 3Q23.

•Weighted-average lease terms of 13.0 years and 11.0 years for 3Q23 and YTD 3Q23, respectively, above our historically long weighted-average lease term of 8.7 years over the last 10 years.

•YTD 3Q23 annualized leasing volume of 4.6 million RSF is in line with 2013-2020 results.

•80% of our leasing activity during the last twelve months was generated from our client base of over 800 tenants.


						3Q23									YTD 3Q23
Total leasing activity – RSF						867,582									3,416,335
Leasing of development and redevelopment space – RSF						204,530									363,017
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)						396,334									2,569,244
Rental rate increase						28.8%									33.9%
Rental rate increase (cash basis)						19.7%									18.1%

Continued strong net operating income and internal growth

•Net operating income (cash basis) of $1.8 billion for 3Q23 annualized, up $129.6 million, or 7.9%, compared to 3Q22 annualized.

•Same property net operating income growth of 3.1% and 4.6% (cash basis) for 3Q23 over 3Q22 and 3.7% and 5.6% (cash basis) for YTD 3Q23 over YTD 3Q22.

•96% of our leases contain contractual annual rent escalations approximating 3%.

Strong and flexible balance sheet with significant liquidity, 13.1 years of remaining term of debt, and no debt maturities prior to 2025

•In September 2023, S&P Global Ratings affirmed Alexandria’s credit rating of BBB+ with a positive outlook, and in October 2023, Moody’s Investors Service affirmed Alexandria’s credit rating of Baa1 with a stable outlook. These ratings affirmations reflect several factors, including the scale and quality of our essential Labspace® assets and market leadership. Additionally, our investment-grade credit ratings continue to rank in the top 10% among all publicly traded U.S. REITs.

•Significant liquidity of $5.9 billion.

•No debt maturities prior to 2025.

•13.1 years weighted-average remaining term of debt.

•99.0% of our debt has a fixed rate.

•Net debt and preferred stock to Adjusted EBITDA of 5.4x and fixed-charge coverage ratio of 4.8x for 3Q23 annualized.

•Total debt and preferred stock to gross assets of 27%.

•$1.2 billion of expected capital contributions from existing real estate joint venture partners from 4Q23 through 2026 to fund construction.

Consistent dividend strategy focuses on retaining significant net cash flows from operating activities after dividends for reinvestment

•Common stock dividend declared for 3Q23 of $1.24 per common share, aggregating $4.90 per common share for the twelve months ended September 30, 2023, up 24 cents, or 5%, over the twelve months ended September 30, 2022.

•Dividend yield of 5.0% as of September 30, 2023.

•Dividend payout ratio of 55% for the three months ended September 30, 2023.

•Average annual dividend per-share growth of 6% from 2019 to 3Q23 annualized.

Ongoing execution of our value harvesting and asset recycling self-funding strategy

Our $1.65 billion value harvesting plan for 2023 is focused on the enhancement of our asset base through the following:


(in millions)						Completed During YTD 3Q23												Expected Completion During 4Q23
Value harvesting dispositions of 100% interest in properties not integral to our mega campus strategy									$	603											$	—
Strategic dispositions and partial interest sales									273												—
Pending transactions subject to signed letters of intent or purchase and sale agreements									—												699
Additional targeted non-core dispositions and partial interest sales in process									—												75
Completed and pending transactions									$	876											$	774
Total 2023 value harvesting plan									$1,650


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			1




Third Quarter Ended September 30, 2023 Financial and Operating Results (continued)
September 30, 2023

External growth and investments in real estate

Alexandria’s highly leased value-creation pipeline delivers annual incremental net operating income of $120 million commencing during YTD 3Q23, including $39 million from 3Q23, and drives future annual incremental net operating income aggregating $580 million


(dollars in millions)						Incremental Annual Net Operating Income						RSF						Leased/Negotiating Percentage
Placed into service(1):
1H23						$	81					840,587						100		%
3Q23						39						450,134						100
YTD 3Q23						$	120					1,290,721						100		%

Expected to be placed into service and stabilized(2):
4Q23						$	114					808,095						99		%
2024						127						1,786,735						92
4Q23 through 4Q24						241						2,594,830						94

1Q25 through 3Q26						339						3,776,614						41
						$	580					6,371,444						66		%	(3)

(1) Annual net operating income (cash basis) is expected to increase by $42 million upon the burn-off of initial free rent from recently delivered projects, which has a weighted-average burn-off of seven months.

(2) Refer to “New Class A/A+ development and redevelopment properties: current projects” of our Supplemental Information for additional details.

(3) 76% of the leased RSF of our value-creation projects was generated from our client base.

Strong balance sheet management

Key metrics as of September 30, 2023

•$28.3 billion in total market capitalization.

•$17.1 billion in total equity capitalization, which ranks in the top 10% among all publicly traded U.S. REITs.

3Q23

Goal

Quarter

Trailing

4Q23

Annualized

12 Months

Annualized

Net debt and preferred stock to Adjusted EBITDA

5.4x

5.5x

Less than or equal to 5.1x

Fixed-charge coverage ratio

4.8x

4.9x

4.5x to 5.0x

Key capital events

•As of 3Q23, we have outstanding forward equity agreements from 2022 aggregating 699 thousand shares of common stock, with expected net proceeds of $103.1 million.

•As of September 30, 2023, the remaining aggregate amount available under our ATM program for future sales of common stock was $141.9 million. We plan to file a new program in the near future.

Investments

•As of September 30, 2023:

•Our non-real estate investments aggregated $1.4 billion.

•Unrealized gains presented in our consolidated balance sheet were $176.0 million, comprising gross unrealized gains and losses aggregating $311.4 million and $135.4 million, respectively.

•Investment loss of $80.7 million for 3Q23, presented in our consolidated statement of operations, consisted of $77.2 million of unrealized losses and $3.5 million of realized losses, including $28.5 million of impairments.

Other key highlights

Executive management change, effective September 15, 2023

Effective on September 15, 2023, Dean A. Shigenaga resigned from his positions as President and Chief Financial Officer and Marc E. Binda, who previously served the Company as Executive Vice President – Finance & Treasurer, was appointed as Chief Financial Officer and Treasurer. Mr. Shigenaga is expected to remain a full-time employee through December 31, 2023, and a part-time employee thereafter.


Key items included in net income attributable to Alexandria’s common stockholders:
																											YTD
			3Q23						3Q22						3Q23						3Q22						3Q23						3Q22						3Q23						3Q22
(In millions, except per share amounts)			Amount												Per Share – Diluted												Amount												Per Share – Diluted
Unrealized losses on non-real estate investments			$	(77.2)					$	(56.5)					$	(0.45)					$	(0.35)					$	(221.0)					$	(388.1)					$	(1.29)					$	(2.42)
Gain on sales of real estate			—						323.7						—						2.00						214.8						537.9						1.26						3.35
Impairment of non-real estate investments			(28.5)						—						(0.17)						—						(51.5)						—						(0.30)						—
Impairment of real estate			(20.6)						(38.8)						(0.12)						(0.24)						(189.2)						(38.8)						(1.11)						(0.24)
Loss on early extinguishment of debt			—						—						—						—						—						(3.3)						—						(0.02)
Acceleration of share-based compensation expense due to executive officer resignation			(1.9)						(7.2)						(0.01)						(0.04)						(1.9)						(7.2)						(0.01)						(0.04)
Total			$	(128.2)					$	221.2					$	(0.75)					$	1.37					$	(248.8)					$	100.5					$	(1.45)					$	0.63
Refer to “Funds from operations and funds from operations per share” of this Earnings Press Release for additional details.


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Third Quarter Ended September 30, 2023 Financial and Operating Results (continued)
September 30, 2023

Subsequent event

•In October 2023, we recognized a real estate impairment charge of approximately $90.8 million to reduce the carrying amounts of two non-laboratory properties located in our Greater Boston market to their current fair values, less costs to sell. We initially acquired these industrial and self-storage properties with an intention to entitle the site as a life science campus, demolish the properties upon expiration of the existing in-place leases, and ultimately develop life science properties. Since our acquisition, the macroeconomic environment has changed. Upon our reevaluation of the project’s financial outlook and its alignment with our mega campus strategy, we decided not to proceed with this project. The impairment charge was recognized upon meeting the criteria for classification as held for sale. We expect to complete the sale of these properties in 4Q23.

Industry and ESG leadership: catalyzing and leading the way for positive change to benefit human health and society

•Alexandria has a longstanding, impactful partnership with the Galien Foundation, the premier global institution dedicated to honoring life science innovations that improve human health through a range of programs, including the annual Galien Forum USA and Prix Galien USA Awards, which will be held this week, on October 26, 2023, in New York City.

•Alexandria will present a mission-critical panel, titled “A National Imperative to Combat Mental Illness and Addiction,” featuring leading advocates of mental health and addiction recovery, congressmen and veterans Seth Moulton (MA-6) and Michael Waltz (FL-6) and Navy SEAL Foundation CEO Robin King, at the 2023 Galien Forum USA. The Galien Forum will take place at the Alexandria Center® for Life Science – New York City.

•Mr. Marcus, as a member of the Prix Galien USA Awards esteemed jury again this year, will honor transformational innovations in life science. He, alongside other influential life science leaders, will serve on the Prix Galien USA Awards committee responsible for evaluating and recognizing the Best Digital Health Solution; Best Medical Technology; Best Incubators, Accelerators and Equity; and Best Startup.

•In October 2023, Alexandria’s sustained ESG leadership and performance was reinforced by several achievements in the 2023 GRESB Real Estate Assessment: (i) 4 Star Ratings in the operating asset and development benchmarks, (ii) our seventh consecutive Green Star designation, and (iii) our sixth consecutive “A” disclosure score, with a perfect score of 100 and a #1 ranking for our best-in-class transparency around ESG practices and reporting in 2023. GRESB is one of the leading global ESG benchmarks for real estate and infrastructure investments.

•In September 2023, Alexandria received the Cambridge Chamber of Commerce’s 2023 Visionary Award for developing 325 Binney Street, designed to be the most sustainable laboratory building in Cambridge and selected by Moderna as its new global headquarters and R&D center. The Chamber’s annual awards recognize innovators from the business, institutional, and non-profit communities that are effecting change and making an extraordinary, positive impact on people’s lives in Cambridge and beyond.

•In August 2023, 685 Gateway Boulevard, an amenities hub designed at the forefront of sustainability in our South San Francisco submarket, was awarded a 2023 AIA California Design Award in the Climate Action category. The building, which is designated as Zero Energy Ready and is on track to achieve ILFI Zero Energy certification, was one of two projects recognized at the highest level in the awards program. The AIA California Design Award winners embody design excellence and address climate change.

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 since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. The trusted partner to over 800 tenants, Alexandria has a total market capitalization of $28.3 billion and an asset base in North America of 75.1 million SF as of September 30, 2023, which includes 41.5 million RSF of operating properties and 5.6 million RSF of Class A/A+ properties undergoing construction, 8.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 19.1 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology 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, agrifoodtech, climate innovation, and technology 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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Guidance
September 30, 2023
(Dollars in millions, except per share amounts)

Guidance for 2023 has been updated to reflect our current view of existing market conditions and assumptions for the year ending December 31, 2023. There can be no assurance that actual amounts will not be materially higher or lower than these expectations. Also, refer to our discussion of “forward-looking statements” on page 8 of this Earnings Press Release for additional details.

Key changes to our guidance include an increase to the midpoint of our guidance for funds from operations per share, as adjusted by two cents driven by the accelerated delivery of our under construction 462,100 RSF Class A+ property at 325 Binney Street that is now set to deliver to Moderna, Inc. in November 2023 and general and administrative savings after September 15, 2023, resulting from the resignation of Dean A. Shigenaga, our President and Chief Financial Officer. Additionally, changes to our key sources and uses of capital include a $100 million decrease to our guidance range for dispositions and sales of partial interests and a corresponding $100 million increase to our guidance range for incremental debt for the year ending December 31, 2023. These updates are primarily due to changes in the mix and timing of dispositions pending and under executed letters of intent or purchase and sales agreements that are expected to close in 4Q23.


Projected 2023 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted
						As of 10/23/23												As of 7/24/23												Key Changes
Earnings per share(1)						$1.36 to $1.38												$2.72 to $2.78
Depreciation and amortization of real estate assets									5.60												5.55
Gain on sales of real estate									(1.26)												(1.26)
Impairment of real estate – rental properties									1.62												0.98									(2)
Allocation to unvested restricted stock awards									(0.03)												(0.04)
Funds from operations per share(3)						$7.29 to $7.31												$7.95 to $8.01
Unrealized losses on non-real estate investments									1.29												0.84

Impairment of non-real estate investments									0.30												0.13									(4)
Impairment of real estate									0.02												0.02

Acceleration of stock compensation due to executive officer resignation									0.09												—									(5)
Allocation to unvested restricted stock awards									(0.02)												(0.01)

Funds from operations per share, as adjusted(3)						$8.97 to $8.99												$8.93 to $8.99												2-cent increase to midpoint; narrowed range by 4 cents
Midpoint						$8.98												$8.96


						As of 10/23/23												As of 7/24/23
Key Assumptions						Low						High						Low						High						Key Changes

Occupancy percentage in North America as of December 31, 2023						94.6%						95.6%						94.6%						95.6%						No Change
Lease renewals and re-leasing of space:
Rental rate increases						28.0%						33.0%						28.0%						33.0%
Rental rate increases (cash basis)						12.0%						17.0%						12.0%						17.0%
Same property performance:
Net operating income increases						2.0%						4.0%						2.0%						4.0%
Net operating income increases (cash basis)						4.0%						6.0%						4.0%						6.0%
Straight-line rent revenue						$	130					$	145					$	130					$	145
General and administrative expenses						$	197					$	207					$	183					$	193					$14 million increase			(5)
Capitalization of interest						$	346					$	366					$	342					$	362					$4 million increase			(6)
Interest expense						$	70					$	90					$	74					$	94					$4 million decrease			(6)

(1)Excludes unrealized gains or losses after September 30, 2023 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.

(2)Includes a real estate impairment charge of approximately $90.8 million recognized in October 2023 to reduce the carrying amounts of two non-laboratory properties located in our Greater Boston market to their current fair values, less costs to sell upon meeting the criteria for classification as held for sale. Refer to “Subsequent event” and “Funds from operations and funds from operations per share” in this Earnings Press Release for additional information.

(3)Refer to “Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s common stockholders” in the “Definitions and reconciliations” of our Supplemental Information for additional details.

(4)Refer to “Funds from operations and funds from operations per share” in this Earnings Press Release for additional information.

(5)Effective on September 15, 2023, Dean A. Shigenaga resigned from his positions as President and Chief Financial Officer and is expected to remain a full-time employee through December 31, 2023, and a part-time employee thereafter. In connection with Mr. Shigenaga’s resignation, stock-based compensation expense aggregating $15.6 million was accelerated through December 31, 2023, of which $1.9 million was recognized during the three months ended September 30, 2023. The increase in general and administrative expenses for the year ending December 31, 2023 was partially offset by a reduction to his compensation after September 15, 2023.

(6)The changes to our guidance ranges for capitalization of interest and interest expense for the year ending December 31, 2023 are primarily due to a five-week change in the delivery of our 140 First Street redevelopment project in our Cambridge submarket and a two-and-a-half-month change in the timing of our disposition of 268,023 RSF in a 660,034 RSF near-term development project at 421 Park Drive in our Fenway submarket. Both the delivery and the partial disposition were completed during 3Q23.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			4



Guidance (continued)
September 30, 2023
(Dollars in millions)

Key Credit Metrics

As of 10/23/23

As of 7/24/23

Key Changes

Net debt and preferred stock to Adjusted EBITDA – 4Q23 annualized

Less than or equal to 5.1x

Less than or equal to 5.1x

No change

Fixed-charge coverage ratio – 4Q23 annualized

4.5x to 5.0x

4.5x to 5.0x


												As of 10/23/23																								As of 7/24/23 Midpoint						Key Changes
Key Sources and Uses of Capital																								Range															Midpoint									Certain Completed Items
Sources of capital:
Incremental debt																								$	660					$	810					$	735					See below						$	635					$100 million increase(1)
Excess 2022 bond capital held as cash at December 31, 2022																								300						300						300						$	300		(2)			300						No change
Net cash provided by operating activities after dividends																								350						400						375												375
Dispositions and sales of partial interests (refer to page 7)																								1,550						1,750						1,650						$	875		(3)			1,750						$100 million decrease(1)
Future settlement of forward equity sales agreements outstanding as of December 31, 2022																								100						100						100						$	100		(4)			100						No change
Total sources of capital before excess cash expected to be held at December 31, 2023																								2,960						3,360						3,160												$	3,160
Cash expected to be held at December 31, 2023(5)																								125						425						275												$	275
Total sources of capital																								$	3,085					$	3,785					$	3,435
Uses of capital:
Construction (refer to page 48)																								$	2,785					$	3,085					$	2,935											$	2,935					No change
Acquisitions (refer to page 6)																								175						275						225						$	259					225
Total uses of capital																								$	2,960					$	3,360					$	3,160											$	3,160
Incremental debt (included above):
Issuance of unsecured senior notes payable																								$	1,000					$	1,000					$	1,000					$	1,000		(6)

Unsecured senior line of credit, commercial paper, and other																								(340)						(190)						(265)
Net incremental debt																								$	660					$	810					$	735

(1)The changes to our guidance ranges for incremental debt and dispositions and sales of partial interests for the year ending December 31, 2023 is primarily due to changes in the mix and timing of dispositions pending and under executed letters of intent or purchase and sale agreements that are expected to close in 4Q23.

(2)Represents $300.0 million of excess 2022 bond capital proceeds held as cash at December 31, 2022, which we used to reduce our 2023 debt capital needs.

(3)In addition to completed transactions, we have pending transactions subject to signed letters of intent or purchase and sale agreements aggregating $699.3 million as of October 23, 2023.

(4)Represents outstanding forward equity sales agreements to sell 699 thousand shares of common stock under our ATM program entered into during 2022 and expected to be settled during 4Q23.

(5)Represents estimated excess 2023 bond capital proceeds expected to be held as cash at December 31, 2023, which reduces our 2024 debt capital needs.

(6)Represents $1.0 billion of unsecured senior notes payable issued in February 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			5



Acquisitions
September 30, 2023
(Dollars in thousands)


Property						Submarket/Market						Date of Purchase						Number of Properties						Operating Occupancy									Square Footage																								Purchase Price
																																	Acquisitions With Development/Redevelopment Opportunities(1)
																																	Future Development						Active Development/Redevelopment						Operating With Future Development/ Redevelopment																											Total(2)

Completed in YTD 3Q23:
Canada						Canada						1/30/23						1						100		%							—						—						247,743																		247,743						$			100,837
Other						Various												4						100									1,089,349						110,717						185,676																		1,385,742									150,139
																		5						100		%							1,089,349						110,717						433,419																		1,633,485									250,976
Completed in October 2023																																																																								8,000
2023 acquisitions completed as of October 23, 2023																																																																					$			258,976

2023 guidance range																																																															$175,000 – $275,000

(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.

(2)Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes RSF of buildings currently in operation with future development or redevelopment opportunities. Refer to “Investments in real estate” in the “Definitions and reconciliations” of our Supplemental Information for additional details on value-creation square feet currently included in rental properties.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			6



Dispositions and Sales of Partial Interests
September 30, 2023
(Dollars in thousands, except per RSF amounts)


Property						Submarket/Market						Date of Sale						Interest Sold									RSF						Capitalization Rate									Capitalization Rate (Cash Basis)									Sales Price						Sales Price per RSF
Value harvesting of dispositions and recycling of assets not integral to our mega campus strategy
225, 266, and 275 Second Avenue and 780 and 790 Memorial Drive						Route 128 and Cambridge/Inner Suburbs/Greater Boston						6/13/23						100		%							428,663						5.0		%							5.2		%							$	365,226					$	852
11119 North Torrey Pines Road						Torrey Pines/San Diego						5/4/23						100		%							72,506						4.4		%							4.6		%							86,000						$	1,186
275 Grove Street						Route 128/Greater Boston						6/27/23						100		%							509,702						N/A									N/A									109,349						N/A
Other																																																			42,092
																																																			602,667
Strategic dispositions and partial interest sales
421 Park Drive(1)						Fenway/Greater Boston						9/19/23						(1)									(1)						N/A									N/A									174,412						N/A
15 Necco Street						Seaport Innovation District/ Greater Boston						4/11/23						18		%							345,995						6.6		%							5.4		%							66,108						$	1,626
9625 Towne Centre Drive						University Town Center/San Diego						6/21/23						20.1		%							163,648						4.2		%							4.5		%							32,261						$	981
																																																			272,781
Dispositions and sales of partial interests completed in YTD 3Q23																																																			875,448

Pending and under executed letters of intent or purchase and sale agreements																																																			699,274

																																																			1,574,722
Additional targeted non-core dispositions in process																																																			75,278
2023 dispositions and sales of partial interests (midpoint)																																																			$	1,650,000

2023 guidance range																											$1,550,000 – $1,750,000

(1)Represents the disposition of 268,023 RSF in a 660,034 RSF near-term development at 421 Park Drive. The proceeds from this transaction will help fund the construction of our remaining 392,011 RSF of the project. The project is expected to commence vertical construction in 4Q23 and be substantially complete in 2026. The buyer will fund the remaining costs to construct its 268,023 RSF, and these costs are not included in our projected construction spending. We will develop and operate the completed project and will earn development fees over the next three years.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			7




Earnings Call Information and About the Company
September 30, 2023

We will host a conference call on Tuesday, October 24, 2023, 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 third quarter ended September 30, 2023. 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, October 24, 2023. The replay number is (877) 344-7529 or (412) 317-0088, and the access code is 4808355.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the third quarter ended September 30, 2023 is available in the “For Investors” section of our website at www.are.com or by following this link: https://www.are.com/fs/2023q3.pdf.

For any questions, please contact 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 since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. The trusted partner to over 800 tenants, Alexandria has a total market capitalization of $28.3 billion and an asset base in North America of 75.1 million SF as of September 30, 2023, which includes 41.5 million RSF of operating properties and 5.6 million RSF of Class A/A+ properties undergoing construction, 8.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 19.1 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology 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, agrifoodtech, climate innovation, and technology 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.

***********

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 2023 earnings per share attributable to Alexandria’s common stockholders – diluted, 2023 funds from operations per share attributable to Alexandria’s common stockholders – diluted, 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®, 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.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			8



Consolidated Statements of Operations
September 30, 2023
(Dollars in thousands, except per share amounts)


						Three Months Ended																														Nine Months Ended
						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22						9/30/23						9/30/22
Revenues:
Income from rentals						$	707,531					$	704,339					$	687,949					$	665,674					$	656,853					$	2,099,819					$	1,910,366
Other income						6,257						9,561						12,846						4,607						2,999						28,664						8,315
Total revenues						713,788						713,900						700,795						670,281						659,852						2,128,483						1,918,681

Expenses:
Rental operations						217,687						211,834						206,933						204,352						201,189						636,454						578,801
General and administrative						45,987						45,882						48,196						42,992						49,958						140,065						134,286
Interest						11,411						17,072						13,754						17,522						22,984						42,237						76,681
Depreciation and amortization						269,370						273,555						265,302						264,480						254,929						808,227						737,666
Impairment of real estate						20,649						168,575						—						26,186						38,783						189,224						38,783
Loss on early extinguishment of debt						—						—						—						—						—						—						3,317
Total expenses						565,104						716,918						534,185						555,532						567,843						1,816,207						1,569,534

Equity in earnings of unconsolidated real estate joint ventures						242						181						194						172						40						617						473
Investment loss						(80,672)						(78,268)						(45,111)						(19,653)						(32,305)						(204,051)						(312,105)
Gain on sales of real estate						—						214,810						—						—						323,699						214,810						537,918
Net income						68,254						133,705						121,693						95,268						383,443						323,652						575,433
Net income attributable to noncontrolling interests						(43,985)						(43,768)						(43,831)						(40,949)						(38,747)						(131,584)						(108,092)
Net income attributable to Alexandria Real Estate Equities, Inc.’s stockholders						24,269						89,937						77,862						54,319						344,696						192,068						467,341


Net income attributable to unvested restricted stock awards						(2,414)						(2,677)						(2,606)						(2,526)						(3,257)						(7,697)						(5,866)
Net income attributable to Alexandria Real Estate Equities, Inc.’s common stockholders						$	21,855					$	87,260					$	75,256					$	51,793					$	341,439					$	184,371					$	461,475

Net income per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic						$	0.13					$	0.51					$	0.44					$	0.31					$	2.11					$	1.08					$	2.88
Diluted						$	0.13					$	0.51					$	0.44					$	0.31					$	2.11					$	1.08					$	2.88

Weighted-average shares of common stock outstanding:
Basic						170,890						170,864						170,784						165,393						161,554						170,846						160,400
Diluted						170,890						170,864						170,784						165,393						161,554						170,846						160,400

Dividends declared per share of common stock						$	1.24					$	1.24					$	1.21					$	1.21					$	1.18					$	3.69					$	3.51


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			9



Consolidated Balance Sheets
September 30, 2023
(In thousands)


						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Assets
Investments in real estate						$	31,712,731					$	31,178,054					$	30,889,395					$	29,945,440					$	28,771,745
Investments in unconsolidated real estate joint ventures						37,695						37,801						38,355						38,435						38,285
Cash and cash equivalents						532,390						924,370						1,263,452						825,193						533,824
Restricted cash						35,321						35,920						34,932						32,782						332,344
Tenant receivables						6,897						6,951						8,197						7,614						7,759
Deferred rent						1,012,666						984,366						974,865						942,646						918,995
Deferred leasing costs						512,216						520,610						527,848						516,275						506,864
Investments						1,431,766						1,495,994						1,573,018						1,615,074						1,624,921
Other assets						1,501,611						1,475,191						1,602,403						1,599,940						1,633,877
Total assets						$	36,783,293					$	36,659,257					$	36,912,465					$	35,523,399					$	34,368,614

Liabilities, Noncontrolling Interests, and Equity
Secured notes payable						$	109,110					$	91,939					$	73,645					$	59,045					$	40,594
Unsecured senior notes payable						11,093,725						11,091,424						11,089,124						10,100,717						10,098,588
Unsecured senior line of credit and commercial paper						—						—						374,536						—						386,666
Accounts payable, accrued expenses, and other liabilities						2,653,126						2,494,087						2,479,047						2,471,259						2,393,764
Dividends payable						214,450						214,555						209,346						209,131						193,623
Total liabilities						14,070,411						13,892,005						14,225,698						12,840,152						13,113,235

Commitments and contingencies

Redeemable noncontrolling interests						51,658						52,628						44,862						9,612						9,612

Alexandria Real Estate Equities, Inc.’s stockholders’ equity:
Common stock						1,710						1,709						1,709						1,707						1,626
Additional paid-in capital						18,651,185						18,812,318						18,902,821						18,991,492						17,639,434
Accumulated other comprehensive loss						(24,984)						(16,589)						(20,536)						(20,812)						(24,725)
Alexandria Real Estate Equities, Inc.’s stockholders’ equity						18,627,911						18,797,438						18,883,994						18,972,387						17,616,335
Noncontrolling interests						4,033,313						3,917,186						3,757,911						3,701,248						3,629,432
Total equity						22,661,224						22,714,624						22,641,905						22,673,635						21,245,767
Total liabilities, noncontrolling interests, and equity						$	36,783,293					$	36,659,257					$	36,912,465					$	35,523,399					$	34,368,614


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			10



Funds From Operations and Funds From Operations per Share
September 30, 2023
(In thousands)

The following table presents a reconciliation of net income 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																														Nine Months Ended
						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22						9/30/23						9/30/22


Net income attributable to Alexandria’s common stockholders						$	21,855					$	87,260					$	75,256					$	51,793					$	341,439					$	184,371					$	461,475
Depreciation and amortization of real estate assets						266,440						270,026						262,124						261,185						251,453						798,590						727,178
Noncontrolling share of depreciation and amortization from consolidated real estate JVs						(28,814)						(28,220)						(28,178)						(29,702)						(27,790)						(85,212)						(77,889)
Our share of depreciation and amortization from unconsolidated real estate JVs						910						855						859						982						795						2,624						2,684
Gain on sales of real estate						—						(214,810)						—						—						(323,699)						(214,810)						(537,918)
Impairment of real estate – rental properties						19,844			(1)			166,602						—						20,899						—						186,446						—
Allocation to unvested restricted stock awards						(838)						(872)						(1,359)						(953)						1,002						(3,050)						(81)
Funds from operations attributable to Alexandria’s common stockholders – diluted(2)						279,397						280,841						308,702						304,204						243,200						868,959						575,449
Unrealized losses on non-real estate investments						77,202						77,897						65,855						24,117						56,515						220,954						388,076
Impairment of non-real estate investments						28,503			(3)			22,953						—						20,512						—						51,456						—
Impairment of real estate						805						1,973						—						5,287						38,783						2,778						38,783
Loss on early extinguishment of debt						—						—						—						—						—						—						3,317
Acceleration of stock compensation expense due to executive officer resignation						1,859			(4)			—						—						—						7,185						1,859						7,185
Allocation to unvested restricted stock awards						(1,330)						(1,285)						(867)						(482)						(1,033)						(3,503)						(4,743)
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted						$	386,436					$	382,379					$	373,690					$	353,638					$	344,650					$	1,142,503					$	1,008,067

(1)Primarily to reduce the carrying amounts of three non-laboratory properties classified as held for sale aggregating 230,704 RSF, located in our Greater Boston and Texas markets, to their respective estimated fair values less costs to sell. These assets represent non-core properties that are not integral to our mega campus strategy.

(2)Calculated in accordance with standards established by the Nareit Board of Governors.

(3)Primarily related to three non-real estate investments in privately held entities that do not report NAV.

(4)Refer to footnote 4 on page 4 in “Guidance” in this Earnings Press Release for additional information.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			11



Funds From Operations and Funds From Operations per Share (continued)
September 30, 2023
(In thousands, except per share amounts)

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																														Nine Months Ended
						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22						9/30/23						9/30/22
Net income per share attributable to Alexandria’s common stockholders – diluted						$	0.13					$	0.51					$	0.44					$	0.31					$	2.11					$	1.08					$	2.88
Depreciation and amortization of real estate assets						1.40						1.42						1.38						1.41						1.39						4.19						4.06
Gain on sales of real estate						—						(1.26)						—						—						(2.00)						(1.26)						(3.35)
Impairment of real estate – rental properties						0.12						0.98						—						0.13						—						1.09						—
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						1.64						1.64						1.81						1.84						1.51						5.09						3.59
Unrealized losses on non-real estate investments						0.45						0.46						0.39						0.15						0.35						1.29						2.42
Impairment of non-real estate investments						0.17						0.13						—						0.12						—						0.30						—
Impairment of real estate						—						0.02						—						0.03						0.24						0.02						0.24
Loss on early extinguishment of debt						—						—						—						—						—						—						0.02
Acceleration of stock compensation expense due to executive officer resignation						0.01						—						—						—						0.04						0.01						0.04
Allocation to unvested restricted stock awards						(0.01)						(0.01)						(0.01)						—						(0.01)						(0.02)						(0.03)
Funds from operations per share attributable to Alexandria’s common stockholders – diluted, as adjusted						$	2.26					$	2.24					$	2.19					$	2.14					$	2.13					$	6.69					$	6.28

Weighted-average shares of common stock outstanding – diluted						170,890						170,864						170,784						165,393						161,554						170,846						160,400


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			12

SUPPLEMENTAL

INFORMATION




Company Profile
September 30, 2023

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 since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. The trusted partner to over 800 tenants, Alexandria has a total market capitalization of $28.3 billion and an asset base in North America of 75.1 million SF as of September 30, 2023, which includes 41.5 million RSF of operating properties and 5.6 million RSF of Class A/A+ properties undergoing construction, 8.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 19.1 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology 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, agrifoodtech, climate innovation, and technology 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 49% of our total 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, agtech, and advanced technology 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 our niche. Alexandria’s highly experienced management team also includes regional market directors with leading reputations and longstanding relationships within the life science, agtech, and technology communities in their respective innovation clusters. We believe that our experience, expertise, reputation, and key relationships in the real estate, life science, agtech, and technology industries provide Alexandria significant competitive advantages in attracting new business opportunities.

Alexandria’s executive and senior management team consists of 63 individuals, averaging 24 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

John H. Cunningham						Jackie B. Clem
Executive Vice President – Regional Market Director – New York City						General Counsel & Secretary

Andres R. Gavinet						Gary D. Dean
Chief Accounting Officer						Executive Vice President – Real Estate Legal Affairs

Onn C. Lee						Kristina A. Fukuzaki-Carlson
Executive Vice President – Accounting						Executive Vice President – Business Operations

Madeleine T. Alsbrook
Executive Vice President – Talent Management


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			14




Investor Information
September 30, 2023

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

Website:

www.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.

JMP Securities

RBC Capital Markets

Nate Crossett / Monir Koummal

Nicholas Joseph / Michael Griffin

Aaron Hecht

Michael Carroll / Aditi Balachandran

(646) 342-1588 / (646) 342-1554

(212) 816-1909 / (212) 816-5871

(415) 835-3963

(440) 715-2649 / (212) 428-6200

BofA Securities

Evercore ISI

J.P. Morgan Securities LLC

Robert W. Baird & Co. Incorporated

Jeff Spector / Joshua Dennerlein

Steve Sakwa / Jay Poskitt

Anthony Paolone / Ray Zhong

Wesley Golladay / Nicholas Thillman

(646) 855-1363 / (646) 855-1681

(212) 446-9462 / (212) 752-0886

(212) 622-6682 / (212) 622-5411

(216) 737-7510 / (414) 298-5053

BTIG, LLC

Green Street

Mizuho Securities USA LLC

Wedbush Securities

Tom Catherwood / John Nickodemus

Dylan Burzinski

Vikram Malhotra / Georgi Dinkov

Richard Anderson / Jay Kornreich

(212) 738-6140 / (212) 738-6050

(949) 640-8780

(212) 282-3827 / (617) 352-1721

(212) 931-7001 / (212) 938-9942

CFRA

Jefferies Research Services, LLC

Michael Elliott

Peter Abramowitz / Ahmed Mehri

(646) 517-5742

(212) 336-7241 / (212) 778-8456

Fixed Income Research Coverage

Rating Agencies

Barclays Capital Inc.

Stifel Financial Corp.

Moody’s Investors Service

S&P Global Ratings

Srinjoy Banerjee / Jeff Otieno

Thierry Perrein

(212) 553-0376

Michael Souers

(212) 526-3521 / (212) 526-6961

(646) 376-5303

(212) 438-2508

J.P. Morgan Securities LLC

Mark Streeter

(212) 834-5086


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			15



Financial and Asset Base Highlights
September 30, 2023
(Dollars in thousands, except per share amounts)


						Three Months Ended (unless stated otherwise)
						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Selected financial data from consolidated financial statements and related information
Rental revenues						$	526,352		(1)			$	537,889					$	518,302					$	499,348					$	496,146
Tenant recoveries						$	181,179					$	166,450					$	169,647					$	166,326					$	160,707
General and administrative expenses						$	45,987					$	45,882					$	48,196					$	42,992					$	49,958
General and administrative expenses as a percentage of net operating income – trailing 12 months						9.3%						9.7%						9.9%						9.8%						10.1%
Operating margin						70%						70%						70%						70%						70%
Adjusted EBITDA margin						69%						70%						69%						69%						69%
Adjusted EBITDA – quarter annualized						$	1,971,440					$	1,986,760					$	1,936,884					$	1,846,936					$	1,810,764
Adjusted EBITDA – trailing 12 months						$	1,935,505					$	1,895,336					$	1,848,018					$	1,797,536					$	1,743,613

Net debt at end of period						$	10,713,620					$	10,303,736					$	10,321,752					$	9,376,705					$	9,736,627
Net debt and preferred stock to Adjusted EBITDA – quarter annualized						5.4x						5.2x						5.3x						5.1x						5.4x
Net debt and preferred stock to Adjusted EBITDA – trailing 12 months						5.5x						5.4x						5.6x						5.2x						5.6x

Total debt and preferred stock at end of period						$	11,202,835					$	11,183,363					$	11,537,305					$	10,159,762					$	10,525,848
Gross assets at end of period						$	41,639,729					$	41,306,090					$	41,474,319					$	39,877,462					$	38,516,844
Total debt and preferred stock to gross assets at end of period						27%						27%						28%						25%						27%

Fixed-charge coverage ratio – quarter annualized						4.8x						4.7x						5.0x						5.0x						4.9x
Fixed-charge coverage ratio – trailing 12 months						4.9x						4.9x						5.0x						5.0x						5.1x
Unencumbered net operating income as a percentage of total net operating income						100%						100%						100%						100%						100%

Closing stock price at end of period						$	100.10					$	113.49					$	125.59					$	145.67					$	140.19
Common shares outstanding (in thousands) at end of period						170,997						170,870						170,860						170,748						162,620
Total equity capitalization at end of period						$	17,116,784					$	19,392,011					$	21,458,270					$	24,872,919					$	22,797,633
Total market capitalization at end of period						$	28,319,619					$	30,575,374					$	32,995,575					$	35,032,681					$	33,323,481

Dividend per share – quarter/annualized						$1.24/$4.96						$1.24/$4.96						$1.21/$4.84						$1.21/$4.84						$1.18/$4.72
Dividend payout ratio for the quarter						55%						55%						55%						58%						56%
Dividend yield – annualized						5.0%						4.4%						3.9%						3.3%						3.4%

Amounts related to operating leases:
Operating lease liabilities at end of period						$	384,958					$	386,545					$	405,190					$	406,700					$	409,030
Rent expense						$	8,317					$	8,518					$	8,536					$	8,722					$	8,502

Capitalized interest						$	96,119					$	91,674					$	87,070					$	79,491					$	73,189
Weighted-average interest rate for capitalization of interest during the period						3.77%						3.77%						3.69%						3.65%						3.55%
(1)Rental revenues decreased temporarily in 3Q23 primarily due to dispositions of assets not integral to our mega campus strategy and the impact of temporary vacancy of certain spaces, which were partially offset by rents from recent development and redevelopment projects placed into service in 3Q23.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			16



Financial and Asset Base Highlights (continued)
September 30, 2023
(Dollars in thousands, except annual rental revenue per occupied RSF amounts)


						Three Months Ended (unless stated otherwise)
						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Amounts included in funds from operations and non-revenue-enhancing capital expenditures
Straight-line rent revenue						$	29,805					$	29,335					$	33,191					$	24,185					$	24,431
Amortization of acquired below-market leases						$	23,222					$	24,789					$	21,636					$	20,125					$	23,546
Straight-line rent expense on ground leases						$	372					$	373					$	369					$	487					$	583
Stock compensation expense						$	16,288					$	15,492					$	16,486					$	11,586					$	17,786
Amortization of loan fees						$	4,059					$	3,729					$	3,639					$	3,975					$	3,235
Amortization of debt discounts						$	(306)					$	(304)					$	(288)					$	(272)					$	(269)
Non-revenue-enhancing capital expenditures:
Building improvements						$	4,510					$	4,376					$	4,334					$	4,128					$	3,963
Tenant improvements and leasing commissions						$	7,560					$	38,587					$	18,586					$	25,049					$	48,960
Funds from operations attributable to noncontrolling interests						$	72,799					$	71,988					$	72,009					$	70,651					$	66,537

Operating statistics and related information (at end of period)
Number of properties – North America						419						414						433						432						431
RSF – North America (including development and redevelopment projects under construction)						47,089,826						46,408,793						47,443,194						47,371,259						46,690,943
Total square feet – North America						75,057,289						74,854,150						75,607,592						74,566,128						74,450,918
Annual rental revenue per occupied RSF – North America						$	53.34					$	53.09					$	52.46					$	51.75					$	50.99
Occupancy of operating properties – North America						93.7%						93.6%						93.6%						94.8%						94.3%
Occupancy of operating and redevelopment properties – North America						89.4%						89.2%						88.5%						89.4%						88.6%
Weighted-average remaining lease term (in years)						7.0						7.2						7.2						7.1						7.2

Total leasing activity – RSF						867,582						1,325,326						1,223,427						2,000,322						1,662,069
Lease renewals and re-leasing of space – change in average new rental rates over expiring rates:
Rental rate increases						28.8%						16.6%						48.3%						26.0%						27.1%
Rental rate increases (cash basis)						19.7%						8.3%						24.2%						19.6%						22.6%
RSF (included in total leasing activity above)						396,334						1,052,872						1,120,038						1,494,345						1,094,821

Top 20 tenants:
Annual rental revenue						$	655,990					$	629,362					$	634,461					$	612,289					$	604,443
Weighted-average remaining lease term (in years)						8.9						9.4						9.5						9.4						9.7

Same property – percentage change over comparable quarter from prior year:
Net operating income increases						3.1%						3.0%						3.7%						4.7%						5.1%
Net operating income increases (cash basis)						4.6%						4.9%						9.0%						10.9%						10.6%


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			17




High-Quality and Diverse Client Base
September 30, 2023

Long-Duration and Stable Cash Flows From

High-Quality and Diverse Tenants

REIT Industry-Leading Client Base

Investment-Grade or Publicly Traded Large Cap Tenants

91%

49%

of ARE’s Top 20 Tenants

Annual Rental Revenue(1)

of ARE’s Total Annual Rental Revenue(1)

Long-Duration Lease Terms

Sustained Strength in Tenant Collections(3)

8.9 Years

7.0 Years

99.9%

99.7%

Top 20 Tenants

All Tenants

Weighted-Average Remaining Term(2)

3Q23

October 2023

Refer to “Annual rental revenue” in the “Definitions and reconciliations” of this Supplemental Information for additional details about our methodology of calculating annual rental revenue from unconsolidated real estate joint ventures.

(1)Represents annual rental revenue in effect as of September 30, 2023.

(2)Based on total annual rental revenue in effect as of September 30, 2023.

(3)Represents the portion of total receivables billed for each indicated period collected as of October 23, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			18




High-Quality and Diverse Client Base in AAA Locations
September 30, 2023


Industry Mix of Over 800 Tenants

						Industry						Annual Rental Revenue(1) per RSF
						Life Science Product, Service, and Device						$	43.34
						Multinational Pharmaceutical						$	60.99
						Public Biotechnology – Approved or Marketed Product						$	59.97
						Institutional (Academic/Medical, Non-Profit, and U.S. Government)						$	58.28
						Public Biotechnology – Preclinical or Clinical Stage						$	67.33
						Private Biotechnology						$	81.36
						Future Change in Use(2)						$	41.52
						Investment-Grade or Large Cap Tech						$	32.06
						Other(3)						$	34.02

Percentage of ARE’s Annual Rental Revenue(1)

Refer to “Annual rental revenue” in the “Definitions and reconciliations” of this Supplemental Information for additional details about our methodology of calculating annual rental revenue from unconsolidated real estate joint ventures.

(1)Represents annual rental revenue in effect as of September 30, 2023.

(2)Represents annual rental revenue currently generated from space that is targeted for a future change in use, including 1.1% of total annual rental revenue that is generated from covered land play projects for future development opportunities. The weighted-average remaining term of these leases is 4.1 years.

(3)Our “Other” tenants, which represent an aggregate of 4.0% of our annual rental revenue, 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.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			19




Occupancy
September 30, 2023

Solid Historical Occupancy of 96% Over Past 10 Years(1) From Historically Strong Demand for Our Class A/A+ Properties in AAA Locations

AAA Locations

Occupancy Across Key Locations

Percentage of ARE’s

Annual Rental Revenue(4)

(1)Represents average occupancy of operating properties in North America as of each December 31 for the last 10 years and as of September 30, 2023.

(2)Refer to footnotes 1 and 2 in the “Summary of occupancy” subsection of “Summary of properties and occupancy” of our Supplemental Information for additional details.

(3)Acquired vacancy of 2.1% from properties recently acquired in 2021 and 2022 primarily representing lease-up opportunities. Excluding acquired vacancies, occupancy of operating properties in North America was 95.8% as of September 30, 2023.

(4)Represents annual rental revenue in effect as of September 30, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			20




Key Operating Metrics
September 30, 2023

Historical Same Property
Net Operating Income Growth

Historical Rental Rate Growth:
Renewed/Re-Leased Space

Margins(2)

Favorable Lease Structure(3)

Operating

Adjusted EBITDA

Strategic Lease Structure by Owner and Operator of Collaborative
Life Science, Agtech, and Advanced Technology Mega Campuses

70%

69%

Increasing cash flows

Percentage of leases containing

annual rent escalations

96%

Stable cash flows

Weighted-Average Lease Terms of Executed Leases

Percentage of triple

net leases

92%

8.6

years

8.7

years

Lower capex burden

Percentage of leases providing for the

recapture of capital expenditures

93%

5 Years

(2019–3Q23)

10 Years

(2014–3Q23)

Refer to “Same property performance” and “Definitions and reconciliations” of this 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)The 10-year average represents the average for the years ended December 31, 2013 through 2022.

(2)Represents percentages for the three months ended September 30, 2023.

(3)Percentages calculated based on annual rental revenue in effect as of September 30, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			21



Same Property Performance
September 30, 2023
(Dollars in thousands)


						September 30, 2023																		September 30, 2023
Same Property Financial Data						Three Months Ended						Nine Months Ended						Same Property Statistical Data						Three Months Ended						Nine Months Ended
Percentage change over comparable period from prior year:																		Number of same properties						336						301
Net operating income increase						3.1%						3.7%						Rentable square feet						33,934,050						30,168,779
Net operating income increase (cash basis)						4.6%						5.6%						Occupancy – current-period average						93.9%						94.4%
Operating margin						69%						70%						Occupancy – same-period prior-year average						95.3%						95.5%


						Three Months Ended September 30,																								Nine Months Ended September 30,
						2023						2022						$ Change						% Change						2023						2022						$ Change						% Change
Income from rentals:

Same properties						$	424,462					$	412,354					$	12,108					2.9		%				$	1,160,700					$	1,116,410					$	44,290					4.0		%
Non-same properties						101,890						83,792						18,098						21.6						421,843						334,340						87,503						26.2
Rental revenues						526,352						496,146						30,206						6.1						1,582,543						1,450,750						131,793						9.1


Same properties						158,102						146,032						12,070						8.3						408,733						382,197						26,536						6.9
Non-same properties						23,077						14,675						8,402						57.3						108,543						77,419						31,124						40.2
Tenant recoveries						181,179						160,707						20,472						12.7						517,276						459,616						57,660						12.5

Income from rentals						707,531						656,853						50,678						7.7						2,099,819						1,910,366						189,453						9.9

Same properties						355						274						81						29.6						619						643						(24)						(3.7)
Non-same properties						5,902						2,725						3,177						116.6						28,045						7,672						20,373						265.6
Other income						6,257						2,999						3,258						108.6						28,664						8,315						20,349						244.7

Same properties						582,919						558,660						24,259						4.3						1,570,052						1,499,250						70,802						4.7
Non-same properties						130,869						101,192						29,677						29.3						558,431						419,431						139,000						33.1
Total revenues						713,788						659,852						53,936						8.2						2,128,483						1,918,681						209,802						10.9

Same properties						181,885						169,671						12,214						7.2						473,060						441,457						31,603						7.2
Non-same properties						35,802						31,518						4,284						13.6						163,394						137,344						26,050						19.0
Rental operations						217,687						201,189						16,498						8.2						636,454						578,801						57,653						10.0

Same properties						401,034						388,989						12,045						3.1						1,096,992						1,057,793						39,199						3.7
Non-same properties						95,067						69,674						25,393						36.4						395,037						282,087						112,950						40.0
Net operating income						$	496,101					$	458,663					$	37,438					8.2		%				$	1,492,029					$	1,339,880					$	152,149					11.4		%

Net operating income – same properties						$	401,034					$	388,989					$	12,045					3.1		%				$	1,096,992					$	1,057,793					$	39,199					3.7		%
Straight-line rent revenue						(18,488)						(17,194)						(1,294)						7.5						(56,099)						(59,102)						3,003						(5.1)
Amortization of acquired below-market leases						(6,742)						(12,567)						5,825						(46.4)						(17,987)						(29,888)						11,901						(39.8)
Net operating income – same properties (cash basis)						$	375,804					$	359,228					$	16,576					4.6		%				$	1,022,906					$	968,803					$	54,103					5.6		%

Refer to “Same property comparisons” in the “Definitions and reconciliations” of this Supplemental Information for 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.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			22



Leasing Activity
September 30, 2023
(Dollars per RSF)


									Three Months Ended																								Nine Months Ended																								Year Ended
									September 30, 2023																								September 30, 2023																								December 31, 2022
						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									28.8%												19.7%												33.9%												18.1%												31.0%												22.1%
New rates									$59.80												$58.09												$51.86												$49.83												$50.37												$48.48
Expiring rates									$46.43												$48.53												$38.73												$42.21												$38.44												$39.69
RSF									396,334																								2,569,244																								4,540,325
Tenant improvements/leasing commissions									$18.55																								$25.20																								$27.83
Weighted-average lease term									7.6 years																								9.2 years																								5.0 years

Developed/redeveloped/previously vacant space leased(2)
New rates									$68.85												$60.80												$63.78												$58.13												$73.46												$64.04
RSF									471,248																								847,091																								3,865,262
Weighted-average lease term									14.4 years																								13.2 years																								11.8 years

Leasing activity summary (totals):
New rates									$65.08												$59.67												$54.91												$51.96												$60.98												$55.64
RSF									867,582																								3,416,335																								8,405,587
Weighted-average lease term									13.0 years																								11.0 years																								8.1 years

Lease expirations(1)
Expiring rates									$54.50												$55.43												$43.59												$44.53												$37.41												$38.06
RSF									786,656																								4,319,951																								6,572,286

Leasing activity includes 100% of results for properties in North America in which we have an investment.

(1)Excludes month-to-month leases aggregating 73,009 RSF and 266,292 RSF as of September 30, 2023 and December 31, 2022, respectively. During the trailing twelve months ended September 30, 2023, we granted free rent concessions averaging 0.6 months per annum.

(2)Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” of this Supplemental Information for additional details on total project costs.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			23




Contractual Lease Expirations
September 30, 2023


Year												RSF												Percentage of Occupied RSF												Annual Rental Revenue (per RSF)(1)												Percentage of Total Annual Rental Revenue
			2023			(2)									617,560												1.6		%										$	36.30											1.1		%
			2024												3,632,359												9.4		%										$	53.26											9.6		%
			2025												3,589,722												9.3		%										$	48.10											8.5		%
			2026												2,764,167												7.2		%										$	51.18											7.0		%
			2027												2,808,450												7.3		%										$	54.85											7.6		%
			2028												4,702,594												12.2		%										$	51.41											12.0		%
			2029												2,515,073												6.5		%										$	51.57											6.4		%
			2030												2,516,747												6.5		%										$	51.16											6.4		%
			2031												3,512,917												9.1		%										$	55.71											9.7		%
			2032												1,180,541												3.1		%										$	57.22											3.3		%
Thereafter															10,739,517												27.8		%										$	53.46											28.4		%


Market						2023 Contractual Lease Expirations (in RSF)																																				Annual Rental Revenue (per RSF)(1)						2024 Contractual Lease Expirations (in RSF)																																				Annual Rental Revenue (per RSF)(1)
						Leased						Negotiating/ Anticipating						Targeted for Future Development/ Redevelopment									Remaining Expiring Leases(3)									Total(2)												Leased						Negotiating/ Anticipating						Targeted for Future Development/ Redevelopment(4)									Remaining Expiring Leases(3)									Total

Greater Boston						8,033						—						—									31,190									39,223						$	89.15					86,532						15,049						412,946									660,668									1,175,195						$	74.50
San Francisco Bay Area						11,000						104,804						—									136,447									252,251						36.58						43,496						15,478						107,250									571,880									738,104						61.10
New York City						—						—						—									200									200						N/A						—						—						—									363,018									363,018						N/A
San Diego						10,368						—						—									3,325									13,693						15.44						—						14,938						580,021			(5)						187,497									782,456						25.25
Seattle						113,073						—						—									73,519									186,592						31.55						6,748						—						50,552									186,140									243,440						24.81
Maryland						—						—						—									56,287									56,287						26.27						89,831						—						—									42,301									132,132						32.40
Research Triangle						34,790						—						—									21,203									55,993						29.67						72,078						—						—									97,941									170,019						51.02
Texas						—						—						—									—									—						—						—						—						—									—									—						—
Canada						13,321						—						—									—									13,321						28.11						—						6,786						—									—									6,786						23.42
Non-cluster/other markets						—						—						—									—									—						—						—						19,867						—									1,342									21,209						55.11
Total						190,585						104,804						—									322,171									617,560						$	36.30					298,685						72,118						1,150,769									2,110,787									3,632,359						$	53.26
Percentage of expiring leases						31		%				17		%				—		%							52		%							100		%										8		%				2		%				32		%							58		%							100		%

(1)Represents amounts in effect as of September 30, 2023.

(2)Excludes month-to-month leases aggregating 73,009 RSF as of September 30, 2023.

(3)The largest remaining contractual lease expirations for 2023 and 2024 are 55,751 RSF in our Mission Bay submarket and 349,947 RSF in our New York City submarket, respectively. Refer to footnote 5 on the next page for additional information related to the contractual lease expiration in our New York City submarket.

(4)Includes lease expirations primarily related to recently acquired properties, including (i) 466,248 RSF expiring in 2024, which is targeted for future redevelopment and expected to commence construction in the near-term, and (ii) 684,521 RSF expiring in 2024, which is targeted for future development and not expected to commence vertical construction in the near term. We expect to demolish these buildings, aggregating 684,521 RSF, which are related to land targeted for future development following lease expiration and commence pre-construction activities, including entitlements, permitting, design, site work, and other activities preceding commencement of construction of aboveground building improvements. Commencement of future development projects is subject to market conditions and leasing. The 2024 weighted-average contractual lease expiration date for all spaces targeted for redevelopment and development (weighted by annual rental revenue) is July 23, 2024. Refer to “Investments in real estate” in the “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties.

(5)Includes 495,192 RSF at the Campus Point by Alexandria mega campus in our University Town Center submarket, which is targeted for future development, pending market conditions and leasing.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			24



Top 20 Tenants
September 30, 2023
(Dollars in thousands, except average market cap amounts)

91% of Top 20 Tenants 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 Aggregate Annual Rental Revenue(1)						Investment-Grade Credit Ratings												Average Market Cap(1) (in billions)

																																																						Moody’s						S&P
1						Bristol-Myers Squibb Company									6.5												908,581												$	67,089								3.3		%				A2						A+						$	145.0
2						Eli Lilly and Company									5.2												820,987												56,771									2.8						A2						A+						$	386.0
3						Moderna, Inc.									10.9												908,436												51,934									2.6						—						—						$	55.2
4						Roche									6.6												770,279												45,811									2.3						Aa2						AA						$	254.0
5						Takeda Pharmaceutical Company Limited									6.3												549,760												37,399									1.8						Baa2						BBB+						$	48.9
6						Alphabet Inc.									3.2												654,423												36,809									1.8						Aa2						AA+						$	1,394.3
7						Illumina, Inc.									6.9												890,389												36,204									1.8						Baa3						BBB						$	31.6
8						2seventy bio, Inc.(2)									9.9												312,805												33,617									1.7						—						—						$	0.5
9						Harvard University									6.3												389,233												31,865									1.6						Aaa						AAA						$	—
10						Novartis AG									4.9												447,831												30,976									1.5						A1						AA-						$	217.5
11						Cloud Software Group, Inc.									3.4			(3)									292,013												28,537									1.4						—						—						$	—
12						Uber Technologies, Inc.									59.0			(4)									1,009,188												27,738									1.4						—						—						$	71.5
13						AstraZeneca PLC									5.5												456,266												25,132									1.2						A3						A						$	210.8
14						United States Government									7.0												340,238												22,704									1.1						Aaa						AA+						$	—
15						Sanofi									7.3												267,278												21,444									1.1						A1						AA						$	126.0
16						Pfizer Inc.									1.0			(5)									405,066												21,421									1.1						A1						A+						$	233.3
17						New York University									8.4												218,983												21,056									1.0						Aa2						AA-						$	—
18						Massachusetts Institute of Technology									5.6												246,725												20,504									1.0						Aaa						AAA						$	—
19						Boston Children’s Hospital									13.1												266,857												20,066									1.0						Aa2						AA						$	—
20						Merck & Co., Inc.									10.6												300,930												18,913									0.9						A1						A+						$	273.9
						Total/weighted-average									8.9			(4)									10,456,268												$	655,990								32.4		%

(1)Based on total annual rental revenue in effect as of September 30, 2023. Refer to “Annual rental revenue” and “Investment-grade or publicly traded large cap tenants” in the “Definitions and reconciliations” of this Supplemental Information for additional details about our methodology of calculating annual rental revenue from unconsolidated real estate joint ventures and average market capitalization, respectively.

(2)As of June 30, 2023, 2seventy bio, Inc. held $282.8 million of cash, cash equivalents, and marketable securities. Additionally, 90.0% of the annual rental revenue generated by 2seventy bio, Inc. is guaranteed by another public biotechnology company (a party related to 2seventybio, Inc.).

(3)Includes one lease at a recently acquired property 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 properties.

(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 the ground leases, the weighted-average remaining lease term for our top 20 tenants was 6.8 years as of September 30, 2023.

(5)Primarily relates to one office building in our New York City submarket aggregating 349,947 RSF with a contractual lease expiration in 3Q24, which is under consideration to be marketed for lease in its current condition or may be developed or redeveloped into laboratory space, subject to market conditions and leasing.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			25



Summary of Properties and Occupancy
September 30, 2023
(Dollars in thousands, except per RSF amounts)

Summary of properties


Market						RSF																														Number of Properties						Annual Rental Revenue
						Operating						Development						Redevelopment						Total						% of Total												Total						% of Total						Per RSF
Greater Boston						10,510,001						1,435,071						1,242,400			(1)			13,187,472						28		%				75						$	728,668					36		%				$	74.41
San Francisco Bay Area						8,043,183						498,142						300,010						8,841,335						19						68						462,086						23						64.74
New York City						1,271,665						—						—						1,271,665						3						5						91,355						4						80.35
San Diego						7,905,785						760,869						—						8,666,654						17						93						312,855						15						43.53
Seattle						2,838,555						311,631						148,890						3,299,076						7						45						110,788						5						41.06
Maryland						3,586,532						510,601						—						4,097,133						9						51						123,652						6						36.08
Research Triangle						3,788,662						88,038						—						3,876,700						8						39						115,104						6						31.35
Texas						1,845,159						—						73,298						1,918,457						4						15						52,707						3						30.02
Canada						1,052,157						—						183,556						1,235,713						3						13						16,097						1						17.20
Non-cluster/other markets						382,961						—						—						382,961						1						11						16,291						1						52.85
Properties held for sale						312,660						—						—						312,660						1						4						845						—						N/A
North America						41,537,320						3,604,352						1,948,154						47,089,826						100		%				419						$	2,030,448					100		%				$	53.34
												5,552,506

(1)Primarily relates to our active redevelopment projects at 840 Winter Street and 40, 50, and 60 Sylvan Road, aggregating 654,953 RSF, which are 50% leased/negotiating on a combined basis. This mega campus project is expected to capture demand in our Route 128 submarket of Greater Boston.

Summary of occupancy


						Operating Properties																		Operating and Redevelopment Properties
Market						9/30/23						6/30/23						9/30/22						9/30/23						6/30/23						9/30/22
Greater Boston						93.2		%				92.5		%				94.4		%				83.3		%				83.2		%				84.7		%
San Francisco Bay Area						95.3						95.5						96.2						91.9						91.9						92.8
New York City						89.4			(1)			88.9						96.5						89.4						88.9						92.3
San Diego						90.9			(2)			92.8						95.2						90.9						92.8						95.2
Seattle						95.1						95.1						97.1						90.3						89.5						90.2
Maryland						96.6						96.2						95.4						96.6						94.9						92.3
Research Triangle						96.9						94.3						93.5						96.9						94.3						84.5
Texas						95.1						95.1						78.4						91.5						91.0						69.9
Subtotal						93.9						93.8						94.5						89.9						89.8						88.9
Canada						88.9						87.3						93.0						75.7						69.2						78.5
Non-cluster/other markets						80.5						81.3						75.0						80.5						81.3						75.0
North America						93.7		%				93.6		%				94.3		%				89.4		%				89.2		%				88.6		%

(1)Vacancy primarily relates to our Alexandria Center® for Life Science – Long Island City property that is currently 41.7% occupied. In addition, our mega campus at Alexandria Center® for Life Science – New York City is currently 95.9% occupied.

(2)Includes temporary vacancy of 105,598 RSF at 6450 Sequence Drive and 65,280 RSF at 4767 Nexus Center Drive. These spaces are each fully leased with occupancy expected to commence over the next one to three quarters.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			26



Property Listing
September 30, 2023
(Dollars in thousands)

Mega Campuses Encompass 75% of Our Annual Rental Revenue(1)


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						2,853,222						—						—						2,853,222						11						$	262,099								99.7		%							99.7		%
						50(2), 60(2), 75/125(2), 100(2), and 225(2) Binney Street, 140 and 215 First Street, 150 Second Street, 300 Third Street(2), 11 Hurley Street, and 100 Edwin H. Land Boulevard
						Mega Campus: Alexandria Center® at One Kendall Square						904,572						462,100						—						1,366,672						12						72,661									82.3									82.3
						One Kendall Square (Buildings 100, 200, 300, 400, 500, 600/700, 1400, 1800, and 2000), 325 and 399 Binney Street, and One Hampshire Street
						Mega Campus: Alexandria Technology Square®						1,185,284						—						—						1,185,284						7						116,257									99.9									99.9
						100, 200, 300, 400, 500, 600, and 700 Technology Square
						Mega Campus: The Arsenal on the Charles						873,038						248,018						—						1,121,056						13						51,813									96.3									96.3
						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						533,327						—						—						533,327						5						27,114									97.0									97.0
						99 Coolidge Avenue(2)						—						320,809						—						320,809						1						—									N/A									N/A
						640 Memorial Drive						242,477						—						—						242,477						1						11,816									38.4									38.4
						Cambridge/Inner Suburbs						6,591,920						1,030,927						—						7,622,847						50						541,760									94.4									94.4
			Fenway
						Mega Campus: Alexandria Center® for Life Science – Fenway						1,234,888						58,149						133,578						1,426,615						2						97,727									92.0									83.0
						401 Park Drive and 201 Brookline Avenue(2)
			Seaport Innovation District
						5 and 15(2) Necco Street						95,400						345,995						—						441,395						2						2,790									—									—
						Mega Campus: 380 and 420 E Street						195,506						—						—						195,506						2						4,948									100.0									100.0
						Seaport Innovation District						290,906						345,995						—						636,901						4						7,738									67.2									67.2
			Route 128
						Mega Campus: 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street						326,110						—						654,953						981,063						5						22,741									100.0									33.2
						Mega Campus: One Moderna Way						706,988						—						—						706,988						4						29,059									100.0									100.0
						19, 225, and 235 Presidential Way						585,226						—						—						585,226						3						14,150									100.0									100.0
						100 Beaver Street						82,330						—						—						82,330						1						4,631									87.0									87.0
						Route 128						1,700,654						—						654,953						2,355,607						13						70,581									99.4									71.7
			Other									691,633						—						453,869						1,145,502						6						10,862									79.2									47.8
						Greater Boston						10,510,001						1,435,071						1,242,400						13,187,472						75						$	728,668								93.2		%							83.3		%
			(1)Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and to “Mega campus” in the “Definitions and reconciliations” of this Supplemental Information for additional details. (2)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			27



Property Listing (continued)
September 30, 2023
(Dollars in thousands)


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)						2,014,424						212,796						—						2,227,220						10						$	96,630								98.0		%							98.0		%
						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						2,014,424						212,796						—						2,227,220						10						96,630									98.0									98.0
			South San Francisco
						Mega Campus: Alexandria Technology Center® – Gateway(1)						1,341,359						—						300,010						1,641,369						12						74,417									88.2									72.1
						600(2), 601, 611, 630(2), 650(2), 651, 681, 685, 701, 751, 901(2), and 951(2) Gateway Boulevard
						Mega Campus: 213(1), 249, 259, 269, and 279 East Grand Avenue						919,704						—						—						919,704						5						57,055									100.0									100.0
						Mega Campus: 1122 and 1150 El Camino Real						445,232						—						—						445,232						2						4,011									100.0									100.0
						Alexandria Center® for Life Science – South San Francisco						504,551						—						—						504,551						3						33,590									89.9									89.9
						201 Haskins Way and 400 and 450 East Jamie Court
						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
						849/863 Mitten Road/866 Malcolm Road						103,857						—						—						103,857						1						4,646									92.7									92.7
						South San Francisco						3,470,388						285,346						300,010						4,055,744						25						184,399									93.7									86.3
			Greater Stanford
						Mega Campus: Alexandria Center® for Life Science – San Carlos						736,632						—						—						736,632						9						44,464									100.0									100.0
						825, 835, 960, and 1501-1599 Industrial Road
						Alexandria Stanford Life Science District						703,570						—						—						703,570						9						66,009									99.4									99.4
						3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue
						3875 Fabian Way						228,000						—						—						228,000						1						9,402									100.0									100.0
						3412, 3420, 3440, 3450, and 3460 Hillview Avenue						338,751						—						—						338,751						5						21,838									75.9									75.9
						2100, 2200, 2300, and 2400 Geng Road						196,276						—						—						196,276						4						11,878									82.8									82.8
						2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road						194,503						—						—						194,503						3						18,439									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						2,558,371						—						—						2,558,371						33						181,057									95.3									95.3
						San Francisco Bay Area						8,043,183						498,142						300,010						8,841,335						68						462,086									95.3									91.9

New York City
			New York City
						Mega Campus: Alexandria Center® for Life Science – New York City						742,618						—						—						742,618						3						67,430									95.9									95.9
						430 and 450 East 29th Street
						219 East 42nd Street						349,947						—						—						349,947						1						18,638									100.0									100.0
						Alexandria Center® for Life Science – Long Island City						179,100						—						—						179,100						1						5,287									41.7									41.7
						30-02 48th Avenue
						New York City						1,271,665						—						—						1,271,665						5						$	91,355								89.4		%							89.4		%
			Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and to “Mega campus” in the “Definitions and reconciliations” of this 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” of this Supplemental Information for additional details. (2)We own 100% of this property.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			28



Property Listing (continued)
September 30, 2023
(Dollars in thousands)


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 and One Alexandria North						833,589						334,996						—						1,168,585						12						$	49,825								100.0		%							100.0		%
						3115 and 3215(1) Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10935, 10945, and 10955 Alexandria Way, 10975 North Torrey Pines Road, 10975, 10995, and 10996 Torreyana Road, and 3545 Cray Court
						ARE Torrey Ridge						296,290						—						—						296,290						3						13,706									85.8									85.8
						10578, 10618, and 10628 Science Center Drive
						ARE Nautilus						213,900						—						—						213,900						4						8,411									82.3									82.3
						3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics Court
						Torrey Pines						1,343,779						334,996						—						1,678,775						19						71,942									94.1									94.1
			University Town Center
						Mega Campus: Campus Point by Alexandria(1)						1,662,342						171,102						—						1,833,444						12						76,608									97.9									97.9
						9880(2), 10010(2), 10140(2), 10210, 10260, 10290, and 10300 Campus Point Drive and 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
						Mega Campus: University District						415,462						—						—						415,462						7						12,431									58.3									58.3
						9625 Towne Centre Drive(1), 4755, 4757, and 4767 Nexus Center Drive, 4796 Executive Drive, 8505 Costa Verde Boulevard, and 4260 Nobel Drive
						University Town Center						2,870,491						171,102						—						3,041,593						25						119,017									92.8									92.8
			Sorrento Mesa
						Mega Campus: SD Tech by Alexandria(1)						1,064,329						254,771						—						1,319,100						15						43,869									94.0									94.0
						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						800,151						—						—						800,151						7						23,930									89.0									89.0
						6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive
						Pacific Technology Park(1)						544,352						—						—						544,352						5						8,898									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						8,202									100.0									100.0
						10102 Hoyt Park Drive
						ARE Portola						101,857						—						—						101,857						3						4,034									100.0									100.0
						6175, 6225, and 6275 Nancy Ridge Drive
						5810/5820 Nancy Ridge Drive						83,354						—						—						83,354						1						4,693									100.0									100.0
						9877 Waples Street						63,774						—						—						63,774						1						2,680									100.0									100.0
						5871 Oberlin Drive						33,842						—						—						33,842						1						1,799									100.0									100.0
						Sorrento Mesa						3,152,303						254,771						—						3,407,074						38						$	109,626								93.3		%							93.3		%
			Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and to “Mega campus” in the “Definitions and reconciliations” of this 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” of this Supplemental Information for additional details. (2)We own 100% of this property.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			29



Property Listing (continued)
September 30, 2023
(Dollars in thousands)


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						$	4,112								85.0		%							85.0		%
						11025, 11035, 11045, 11055, 11065, and 11075 Roselle Street						121,880						—						—						121,880						6						3,236									70.2									70.2
						Sorrento Valley						230,692						—						—						230,692						9						7,348									77.2									77.2
			Other									308,520						—						—						308,520						2						4,922									45.7									45.7
						San Diego						7,905,785						760,869						—						8,666,654						93						312,855									90.9									90.9

Seattle
			Lake Union
						Mega Campus: The Eastlake Life Science Campus by Alexandria						937,187						311,631						—						1,248,818						9						57,456									97.5									97.5
						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
						400 Dexter Avenue North(1)						290,754						—						—						290,754						1						17,193									100.0									100.0
						219 Terry Avenue North						30,705						—						—						30,705						1						961									48.4									48.4
						Lake Union						1,258,646						311,631						—						1,570,277						11						75,610									96.9									96.9
			SoDo
						830 4th Avenue South						42,380						—						—						42,380						1						1,229									70.5									70.5
			Elliott Bay
						3000/3018 Western Avenue						47,746						—						—						47,746						1						3,147									100.0									100.0
						410 West Harrison Street and 410 Elliott Avenue West						36,849						—						—						36,849						2						1,570									100.0									100.0
						Elliott Bay						84,595						—						—						84,595						3						4,717									100.0									100.0
			Bothell
						Mega Campus: Alexandria Center® for Advanced Technologies – Canyon Park						1,060,720						—						—						1,060,720						22						22,308									92.6									92.6
						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						311,030						—						148,890						459,920						6						5,981									96.8									65.4
						3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway
						Bothell						1,371,750						—						148,890						1,520,640						28						28,289									93.5									84.4
			Other									81,184						—						—						81,184						2						943									100.0									100.0
						Seattle						2,838,555						311,631						148,890						3,299,076						45						$	110,788								95.1		%							90.3		%

Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and to “Mega campus” in the “Definitions and reconciliations” of this 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” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			30



Property Listing (continued)
September 30, 2023
(Dollars in thousands)


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						1,176,744						510,601						—						1,687,345						20						$	53,669								97.7		%							97.7		%
						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						131,511						—						—						131,511						1						4,189									100.0									100.0
						1405 and 1450(1) Research Boulevard						114,849						—						—						114,849						2						3,019									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						3,037									100.0									100.0
						5 Research Court						51,520						—						—						51,520						1						1,788									100.0									100.0
						12301 Parklawn Drive						49,185						—						—						49,185						1						1,598									100.0									100.0
						Rockville						1,679,020						510,601						—						2,189,621						28						69,144									96.5									96.5
			Gaithersburg
						Alexandria Technology Center® – Gaithersburg I						619,241						—						—						619,241						9						18,048									100.0									100.0
						9, 25, 35, 45, 50, and 55 West Watkins Mill Road and 910, 930, and 940 Clopper Road
						Alexandria Technology Center® – Gaithersburg II						490,668						—						—						490,668						7						18,265									97.8									97.8
						700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road
						20400 Century Boulevard						81,006						—						—						81,006						1						3,298									100.0									100.0
						401 Professional Drive						63,154						—						—						63,154						1						2,123									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						1,332,019						—						—						1,332,019						20						44,175									99.2									99.2
			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						1,185									61.1									61.1
						Beltsville						327,307						—						—						327,307						2						4,206									83.9									83.9
			Northern Virginia
						14225 Newbrook Drive						248,186						—						—						248,186						1						6,127									100.0									100.0
						Maryland						3,586,532						510,601						—						4,097,133						51						$	123,652								96.6		%							96.6		%

			Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and to “Mega campus” in the “Definitions and reconciliations” of this 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” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			31



Property Listing (continued)
September 30, 2023
(Dollars in thousands)


Market / Submarket / Address												RSF																								Number of Properties						Annual Rental Revenue									Occupancy Percentage

																																																			Operating									Operating and Redevelopment
												Operating						Development						Redevelopment						Total

Research Triangle
			Research Triangle
						Mega Campus: Alexandria Center® for Life Science – Durham						2,155,252						—						—						2,155,252						15						$	51,799								97.5		%							97.5		%
						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 Advanced Technologies – Research Triangle						345,731						—						—						345,731						4						16,208									95.6									95.6
						6, 8, 10, and 12 Davis Drive
						Alexandria Center® for AgTech						345,467						—						—						345,467						2						16,528									97.2									97.2
						5 and 9 Laboratory Drive
						104, 108, 110, 112, and 114 TW Alexander Drive						228,123						—						—						228,123						5						8,419									99.7									99.7
						Alexandria Technology Center® – Alston						186,971						—						—						186,971						3						4,019									82.0									82.0
						100, 800, and 801 Capitola Drive
						6040 George Watts Hill Drive						61,547						88,038						—						149,585						2						2,148									100.0									100.0
						Alexandria Innovation Center® – Research Triangle						136,729						—						—						136,729						3						4,093									97.2									97.2
						7010, 7020, and 7030 Kit Creek Road
						7 Triangle Drive						104,531						—						—						104,531						1						4,422									100.0									100.0
						2525 East NC Highway 54						82,996						—						—						82,996						1						3,651									100.0									100.0
						601 Keystone Park Drive						77,595						—						—						77,595						1						2,128									100.0									100.0
						5 Triangle Drive						32,120						—						—						32,120						1						930									100.0									100.0
						6101 Quadrangle Drive						31,600						—						—						31,600						1						759									100.0									100.0
						Research Triangle						3,788,662						88,038						—						3,876,700						39						115,104									96.9									96.9

Texas
			Austin
						Mega Campus: Intersection Campus						1,525,359						—						—						1,525,359						12						43,031									98.8									98.8
						1001 Trinity Street and 1020 Red River Street						198,972						—						—						198,972						2						6,746									100.0									100.0
						Austin						1,724,331						—						—						1,724,331						14						49,777									98.9									98.9
			Greater Houston
						Alexandria Center® for Advanced Technologies at The Woodlands						120,828						—						73,298						194,126						1						2,930									41.5									25.8
						8800 Technology Forest Place
						Texas						1,845,159						—						73,298						1,918,457						15						52,707									95.1									91.5

Canada												1,052,157						—						183,556						1,235,713						13						16,097									88.9									75.7

Non-cluster/other markets												382,961						—						—						382,961						11						16,291									80.5									80.5

North America, excluding properties held for sale												41,224,660						3,604,352						1,948,154						46,777,166						415						2,029,603									93.7		%							89.4		%

Properties held for sale												312,660						—						—						312,660						4						845									11.6		%							11.6		%

Total – North America												41,537,320						3,604,352						1,948,154						47,089,826						419						$	2,030,448

Refer to “New Class A/A+ development and redevelopment properties: summary of pipeline” and to “Mega campus” in the “Definitions and reconciliations” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			32



Investments in Real Estate

September 30, 2023

Refer to “Net operating income” in the “Definitions and reconciliations” of this Supplemental Information for additional details and its reconciliation from the most directly comparable financial measures presented in accordance with GAAP.

(1)Our share of annual incremental net operating income primarily commencing from 4Q23 through 3Q26 is $491 million.

(2)Represents projects under construction aggregating 5.6 million RSF and two near-term projects aggregating 0.8 million RSF expected to commence construction during the next three quarters after September 30, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			33



Investments in Real Estate
September 30, 2023
(Dollars in thousands)

Investments in real estate


												Development and Redevelopment
												Active and Near-Term Construction												Future Opportunities Subject to Market Conditions and Leasing
						Operating						Under Construction 67% Leased/Negotiating						Committed Near Term 59% Leased(1)						Near Term						Intermediate Term						Future						Subtotal						Total

Square footage
Operating						41,537,320						—						—						—						—						—						—						41,537,320
New Class A/A+ development and redevelopment properties						—						5,552,506						818,938						3,007,032						6,038,906						22,254,380						37,671,762						37,671,762
Value-creation square feet currently included in rental properties(2)						—						—						—						(466,248)						(539,276)						(3,146,269)						(4,151,793)						(4,151,793)
Total square footage						41,537,320						5,552,506						818,938						2,540,784						5,499,630						19,108,111						33,519,969						75,057,289

Investments in real estate
Gross book value as of September 30, 2023(3)						$	27,048,083					$	4,498,324					$	386,728					$	749,507					$	1,365,116					$	2,517,253					$	9,516,928					$	36,565,011

(1)Represents near-term projects expected to commence construction during the next three quarters after September 30, 2023.

(2)Refer to “Investments in real estate” in the “Definitions and reconciliations” of this Supplemental Information for additional details on 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” in the “Definitions and reconciliations” of this Supplemental Information for reconciliation detail of investments in real estate.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			34



New Class A/A+ Development and Redevelopment Properties: Recent Deliveries

September 30, 2023

201 Brookline Avenue

140 First Street

751 Gateway Boulevard

Alexandria Center® for Advanced

Technologies – Monte Villa Parkway(1)

Greater Boston/Fenway

Greater Boston/Cambridge

San Francisco Bay Area/
South San Francisco

Seattle/Bothell

451,967 RSF

403,892 RSF

230,592 RSF

65,086 RSF

100% Occupancy

100% Occupancy

100% Occupancy

100% Occupancy

9808 Medical Center Drive

9601 and 9603

Medical Center Drive(2)

20400 Century Boulevard

2400 Ellis Road, 40 Moore Drive, and

14 TW Alexander Drive(3)

8800 Technology Forest Place

Maryland/Rockville

Maryland/Rockville

Maryland/Gaithersburg

Research Triangle/Research Triangle

Texas/Greater Houston

26,460 RSF

95,911 RSF

81,006 RSF

603,316 RSF

50,094 RSF

100% Occupancy

100% Occupancy

100% Occupancy

100% Occupancy

100% Occupancy

(1)Image represents 3755 Monte Villa Parkway.

(2)Image represents 9601 Medical Center Drive.

(3)Image represents 2400 Ellis Road on the Alexandria Center® for Life Science – Durham mega campus.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			35


New Class A/A+ Development and Redevelopment Properties: Recent Deliveries (continued)

September 30, 2023
(Dollars in thousands)

Annual Incremental Net Operating Income Generated From Deliveries Totals $120 Million

During YTD 3Q23, Including $39 Million From 3Q23


Property/Market/Submarket												Our Ownership Interest						RSF Placed in Service																														Occupancy Percentage(2)												Total Project												Unlevered Yields
						3Q23 Delivery Date(1)												Prior to 1/1/23						1Q23						2Q23						3Q23																					Total																					Initial Stabilized												Initial Stabilized (Cash Basis)
																																																															RSF						Investment
Development projects
201 Brookline Avenue/Greater Boston/Fenway						N/A						99.0%						340,073						107,174						4,720						—												451,967									100%									510,116						$	775,000								7.2		%										6.5		%
751 Gateway Boulevard/San Francisco Bay Area/South San Francisco						9/1/23						51.0%						—						—						—						230,592												230,592									100%									230,592						246,000									7.0												7.5
9808 Medical Center Drive/Maryland/Rockville						9/13/23						100%						—						—						—						26,460												26,460									100%									95,061						113,000									5.5												5.5


Redevelopment projects
140 First Street/Greater Boston/Cambridge						8/6/23						100%						—						—						325,346						78,546												403,892									100%									408,259						1,248,000									5.6												4.7
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell						9/1/23						100%						—						35,847						—						29,239												65,086									100%									460,623						229,000									6.3												6.2
9601 and 9603 Medical Center Drive/Maryland/Rockville						9/30/23						100%						34,589						13,927						—						47,395												95,911									100%									95,911						63,000									8.0												6.8
20400 Century Boulevard/Maryland/Gaithersburg						N/A						100%						50,738						19,692						10,576						—												81,006									100%									81,006						35,000									9.5												9.3
2400 Ellis Road, 40 Moore Drive, and 14 TW Alexander Drive/Research Triangle/Research Triangle						N/A						100%						326,445						276,871						—						—												603,316									100%									603,316						241,000									8.1												6.8
8800 Technology Forest Place/Texas/Greater Houston						8/25/23						100%						—						—						46,434						3,660												50,094									100%									123,392						112,000									6.3												6.0
Canada						9/29/23						100%						—						—						—						34,242												34,242									100%									250,790						104,000									7.0												7.0
Weighted average/total						8/24/23												751,845						453,511						387,076						450,134												2,042,566																		2,859,066						$	3,166,000								6.5		%										5.9		%

Refer to “New Class A/A+ development and redevelopment properties: current projects” of this Supplemental Information for details on the RSF in service and under construction, if applicable.

(1)Represents the average delivery date for deliveries that occurred during the current quarter, weighted by annual rental revenue.

(2)Relates to total operating RSF placed in service as of the most recent delivery.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			36



New Class A/A+ Development and Redevelopment Properties: Current Projects

September 30, 2023

325 Binney Street

99 Coolidge Avenue

500 North Beacon Street and

4 Kingsbury Avenue(1)

201 Brookline Avenue

401 Park Drive

Greater Boston/Cambridge

Greater Boston/
Cambridge/Inner Suburbs

Greater Boston/
Cambridge/Inner Suburbs

Greater Boston/Fenway

Greater Boston/Fenway

462,100 RSF

320,809 RSF

248,018 RSF

58,149 RSF

133,578 RSF

100% Leased

36% Leased

85% Leased

98% Leased

17% Leased

15 Necco Street

40, 50, and 60 Sylvan Road(2)

1450 Owens Street(3)

651 Gateway Boulevard

230 Harriet Tubman Way

Greater Boston/
Seaport Innovation District

Greater Boston/Route 128

San Francisco Bay Area/
Mission Bay

San Francisco Bay Area/
South San Francisco

San Francisco Bay Area/
South San Francisco

345,995 RSF

515,273 RSF

212,796 RSF

300,010 RSF

285,346 RSF

97% Leased

36% Leased/Negotiating

—% Leased/Negotiating

22% Leased

100% Leased

(1)Image represents 500 North Beacon Street on the Arsenal on the Charles mega campus.

(2)Image represents 50 Sylvan Road. This mega campus project is expected to capture demand in our Route 128 submarket. We have executed a letter of intent with a multinational pharmaceutical company for 36% of the entire project.

(3)Image represents a single- or multi-tenant project expanding our existing mega campus, which will be 100% funded by our joint venture partner. We are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			37



New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)

September 30, 2023

10935, 10945, and 10955

Alexandria Way(1)

4155 Campus Point Court

10075 Barnes Canyon Road

1150 Eastlake Avenue East

Alexandria Center® for Advanced Technologies – Monte Villa Parkway(2)

San Diego/Torrey Pines

San Diego/
University Town Center

San Diego/Sorrento Mesa

Seattle/Lake Union

Seattle/Bothell

334,996 RSF

171,102 RSF

254,771 RSF

311,631 RSF

148,890 RSF

75% Leased

100% Leased

17% Leased/Negotiating

100% Leased

82% Leased

9810 and 9820 Darnestown Road

9808 Medical Center Drive

6040 George Watts Hill Drive,
Phase II

8800 Technology Forest Place

Maryland/Rockville

Maryland/Rockville

Research Triangle/Research Triangle

Texas/Greater Houston

442,000 RSF

68,601 RSF

88,038 RSF

73,298 RSF

100% Leased

60% Leased

100% Leased

41% Leased

(1)Formerly known as 10931 and 10933 North Torrey Pines Road.

(2)Image represents 3755 Monte Villa Parkway.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			38



New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)

September 30, 2023


Property/Market/Submarket												Square Footage																		Percentage																		Occupancy(1)
						Dev/Redev						In Service						CIP						Total						Leased									Leased/Negotiating									Initial												Stabilized
Under construction
2023 stabilization
325 Binney Street/Greater Boston/Cambridge						Dev						—						462,100						462,100						100		%							100		%										4Q23									4Q23
15 Necco Street/Greater Boston/Seaport Innovation District						Dev						—						345,995						345,995						97									97												4Q23									4Q23
												—						808,095						808,095						99									99
2024 stabilization
201 Brookline Avenue/Greater Boston/Fenway						Dev						451,967						58,149						510,116						98									98												3Q22									2024
840 Winter Street/Greater Boston/Route 128						Redev						28,534						139,680						168,214						100									100												2024									2024
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco						Dev						—						285,346						285,346						100									100												2024									2024
4155 Campus Point Court/San Diego/University Town Center						Dev						—						171,102						171,102						100									100												2024									2024
1150 Eastlake Avenue East/Seattle/Lake Union						Dev						—						311,631						311,631						100									100												4Q23									2024
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell						Redev						311,733						148,890						460,623						82									82												1Q23									2024
9820 Darnestown Road/Maryland/Rockville						Dev						—						250,000						250,000						100									100												2024									2024
9810 Darnestown Road/Maryland/Rockville						Dev						—						192,000						192,000						100									100												2024									2024
9808 Medical Center Drive/Maryland/Rockville						Dev						26,460						68,601						95,061						60									60												3Q23									2024
6040 George Watts Hill Drive, Phase II/Research Triangle/Research Triangle						Dev						—						88,038						88,038						100									100												2024									2024
8800 Technology Forest Place/Texas/Greater Houston						Redev						50,094						73,298						123,392						41									41												2Q23									2024
												868,788						1,786,735						2,655,523						92									92
												868,788						2,594,830						3,463,618						94									94
2025 and beyond stabilization
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs						Dev						—						320,809						320,809						36									36												2024									2025
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs						Dev						—						248,018						248,018						85									85												2024									2025
401 Park Drive/Greater Boston/Fenway						Redev						—						133,578						133,578						17									17												2024									2026
40, 50, and 60 Sylvan Road/Greater Boston/Route 128						Redev						—						515,273						515,273						—									36												2024									2026
Other/Greater Boston						Redev						—						453,869						453,869						—									—												2025									2026
1450 Owens Street/San Francisco Bay Area/Mission Bay						Dev						—						212,796						212,796						—									—			(2)									2024									2025
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco						Redev						—						300,010						300,010						22									22												2024									2025
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines						Dev						—						334,996						334,996						75									75			(3)									2025									2026
10075 Barnes Canyon Road/San Diego/Sorrento Mesa						Dev						—						254,771						254,771						—									17												2024									2025
Canada						Redev						67,234						183,556						250,790						73									73												3Q23									2025
												67,234						2,957,676						3,024,910						28									36			(4)

												936,022						5,552,506						6,488,528						63		%							67		%
(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)Represents a single- or multi-tenant project expanding our existing mega campus, which will be 100% funded by our joint venture partner. We are currently marketing the space for lease and have initial interest from publicly traded biotechnology and institutional tenants. (3)We terminated a lease at our development project located at 10935 and 10945 Alexandria Way (formerly known as 10931 and 10933 North Torrey Pines Road) to allow this tenant to remain and extend the lease term in its existing space at one of our operating properties. In addition, we re-leased a majority of this development project by relocating a high-credit tenant for higher rents and a longer lease term from our near-term project at 11255 and 11355 North Torrey Pines Road. (4)These projects are focused on demand from our existing tenants in our adjacent properties/campuses and will also address demand from other non-Alexandria properties/campuses.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			39


New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)


September 30, 2023


Property/Market/Submarket												Square Footage																		Percentage
						Dev/Redev						In Service						CIP						Total						Leased									Leased/Negotiating
Near-term projects expected to commence construction in the next three quarters
2025 and beyond stabilization
421 Park Drive/Greater Boston/Fenway						Dev						—						392,011						392,011						13		%							13		%
4135 Campus Point Court/San Diego/University Town Center						Dev						—						426,927						426,927						100									100
												—						818,938						818,938						59									59
Total												936,022						6,371,444						7,307,466						63		%							66		%


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			40


New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)

September 30, 2023
(Dollars in thousands)


						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
2023 stabilization
325 Binney Street/Greater Boston/Cambridge						100		%							$	—					$	700,331					$	190,669					$	891,000								8.5		%										7.2		%
15 Necco Street/Greater Boston/Seaport Innovation District						60.3		%							—						477,880						89,120						567,000									6.7		%										5.5		%
															—						1,178,211
2024 stabilization
201 Brookline Avenue/Greater Boston/Fenway						99.0		%							659,954						74,331						40,715						775,000									7.2		%										6.5		%
840 Winter Street/Greater Boston/Route 128						100		%							13,648						125,004						69,348						208,000									7.5		%										6.5		%
230 Harriet Tubman Way/San Francisco Bay Area/South San Francisco						46.7		%							—						205,164						207,836						413,000									7.4		%										6.2		%
4155 Campus Point Court/San Diego/University Town Center						55.0		%							—						74,816						98,184						173,000									7.4		%										6.5		%
1150 Eastlake Avenue East/Seattle/Lake Union						100		%							—						361,659						43,341						405,000									6.4		%										6.2		%
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Seattle/Bothell						100		%							92,509						88,709						47,782						229,000									6.3		%										6.2		%
9820 Darnestown Road/Maryland/Rockville						100		%							—						120,933						56,067						177,000									6.3		%										5.6		%
9810 Darnestown Road/Maryland/Rockville						100		%							—						102,125						30,875						133,000									6.9		%										6.2		%
9808 Medical Center Drive/Maryland/Rockville						100		%							34,551						50,805						27,644						113,000									5.5		%										5.5		%
6040 George Watts Hill Drive, Phase II/Research Triangle/Research Triangle						100		%							—						58,730						5,270						64,000									8.0		%										7.0		%
8800 Technology Forest Place/Texas/Greater Houston						100		%							43,009						54,185						14,806						112,000									6.3		%										6.0		%
															843,671						1,316,461
2025 and beyond stabilization(1)
99 Coolidge Avenue/Greater Boston/Cambridge/Inner Suburbs						75.0		%							—						273,700						TBD
500 North Beacon Street and 4 Kingsbury Avenue/Greater Boston/ Cambridge/Inner Suburbs						100		%							—						302,560						124,440						427,000									6.2		%										5.5		%
401 Park Drive/Greater Boston/Fenway						100		%							—						138,130						TBD
40, 50, and 60 Sylvan Road/Greater Boston/Route 128						100		%							—						384,730
Other/Greater Boston						100		%							—						138,361
1450 Owens Street/San Francisco Bay Area/Mission Bay						42.8		%							—						197,406
651 Gateway Boulevard/San Francisco Bay Area/South San Francisco						50.0		%							—						280,604
10935, 10945, and 10955 Alexandria Way/San Diego/Torrey Pines						100		%							—						142,404						360,596						503,000									6.2		%										5.8		%
10075 Barnes Canyon Road/San Diego/Sorrento Mesa						50.0		%							—						103,700						TBD
Canada						100		%							21,729						42,057						40,214						104,000									7.0		%										7.0		%
															21,729						2,003,652

															$	865,400					$	4,498,324					$	2,850,000		(2)			$	8,210,000		(2)
(1)We expect to provide total estimated costs and related yields for each project with estimated stabilization in 2025 and beyond over the next several quarters. (2)Amounts are rounded to the nearest $10 million and include preliminary estimated amounts for projects listed as TBD.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			41


New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)

September 30, 2023
(Dollars in thousands)


						Our Ownership Interest									At 100%
Property/Market/Submarket															In Service						CIP						Cost to Complete						Total at Completion

Near-term projects expected to commence construction in the next three quarters
2025 and beyond stabilization																											TBD
421 Park Drive/Greater Boston/Fenway						99.6		%							$	—					$	276,096
4135 Campus Point Court/San Diego/University Town Center						55.0		%							—						110,632

															—						386,728						$	890,000		(1)			$	1,280,000		(1)
Total															$	865,400					$	4,885,052					$	3,740,000		(1)			$	9,490,000		(1)

Our share of investment(2)																					$	4,160,000		(1)			$	3,130,000		(1)			$	8,150,000		(1)

(1)Amounts are rounded to the nearest $10 million and include preliminary estimated amounts for projects listed as TBD.

(2)Represents our share of investment based on our ownership percentages at the completion of development or redevelopment projects.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			42



New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline
September 30, 2023
(Dollars in thousands)


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						Near Term						Intermediate Term						Future						Total(1)

Greater Boston
Mega Campus: Alexandria Center® at One Kendall Square/Cambridge						100		%							$	700,331					462,100						—						—						—						—						462,100
325 Binney Street
99 Coolidge Avenue/Cambridge/Inner Suburbs						75.0		%							273,700						320,809						—						—						—						—						320,809
Mega Campus: The Arsenal on the Charles/Cambridge/Inner Suburbs						100		%							313,688						248,018						—						308,446						—						34,157						590,621
311 Arsenal Street, 500 North Beacon Street, and 4 Kingsbury Avenue
Mega Campus: Alexandria Center® for Life Science – Fenway/Fenway						(2)									488,557						191,727						392,011						—						—						—						583,738
201 Brookline Avenue and 401 and 421 Park Drive
15 Necco Street/Seaport Innovation District						60.3		%							477,880						345,995						—						—						—						—						345,995
Mega Campus: 40, 50, and 60 Sylvan Road, 35 Gatehouse Drive, and 840 Winter Street/Route 128						100		%							568,893						654,953						—						—						—						515,000						1,169,953
Mega Campus: Alexandria Center® at Kendall Square/Cambridge						100		%							107,045						—						—						—						174,500						41,955						216,455
100 Edwin H. Land Boulevard
Mega Campus: 480 Arsenal Way and 446, 458, 500, and 550 Arsenal Street/Cambridge/Inner Suburbs						100		%							82,056						—						—						—						—						902,000						902,000
446, 458, 500, and 550 Arsenal Street
Mega Campus: Alexandria Technology Square®/Cambridge						100		%							7,881						—						—						—						—						100,000						100,000
Mega Campus: 380 and 420 E Street/Seaport Innovation District						100		%							129,485						—						—						—						—						1,000,000						1,000,000
99 A Street/Seaport Innovation District						100		%							51,705						—						—						—						—						235,000						235,000
10 Necco Street/Seaport Innovation District						100		%							102,024						—						—						—						—						175,000						175,000
Mega Campus: One Moderna Way/Route 128						100		%							25,747						—						—						—						—						1,100,000						1,100,000
215 Presidential Way/Route 128						100		%							6,813						—						—						—						—						112,000						112,000
Other value-creation projects						(3)									286,788						453,869						—						190,992						—						1,132,549						1,777,410
															$	3,622,593					2,677,471						392,011						499,438						174,500						5,347,661						9,091,081
Refer to “Mega campus” in the “Definitions and reconciliations” of this 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 RSF of buildings currently in operation at properties that also have inherent 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” in the “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties. (2)We have a 99.0% interest in 201 Brookline Avenue aggregating 58,149 RSF and a 100% interest in 401 Park Drive aggregating 133,578 RSF, which are currently under construction, and a 99.6% interest in the near-term development project at 421 Park Drive aggregating 392,011 RSF. Refer to “Dispositions and sales of partial interests” in our Earnings Press Release for additional details on our sale of 268,023 RSF at 421 Park Drive. (3)Includes a property in which we own a partial interest through a real estate joint venture. Refer to “Joint venture financial information” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			43



New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
September 30, 2023
(Dollars in thousands)


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						Near Term						Intermediate Term						Future						Total(1)
San Francisco Bay Area
Mega Campus: Alexandria Center® for Science and Technology – Mission Bay/Mission Bay						42.8		%							$	197,406					212,796						—						—						—						—						212,796
1450 Owens Street
Mega Campus: Alexandria Technology Center® – Gateway/ South San Francisco						50.0		%							306,472						300,010						—						—						—						291,000						591,010
651 Gateway Boulevard
Alexandria Center® for Life Science – Millbrae/South San Francisco						46.7		%							352,963						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: 211(2), 213(2), 249, 259, 269, and 279 East Grand Avenue/South San Francisco						100		%							6,655						—						—						107,250						—						90,000						197,250
211 and 269 East Grand Avenue
Mega Campus: Alexandria Center® for Life Science – San Carlos/Greater Stanford						100		%							416,234						—						—						105,000						700,000						692,830						1,497,830
960 Industrial Road, 987 and 1075 Commercial Street, and 888 Bransten Road
901 California Avenue/Greater Stanford						100		%							15,159						—						—						56,924						—						—						56,924
3825 and 3875 Fabian Way/Greater Stanford						100		%							144,308						—						—						—						250,000						228,000						478,000
Mega Campus: 88 Bluxome Street/SoMa						100		%							373,527						—						—						—						1,070,925						—						1,070,925
Mega Campus: 1122, 1150, and 1178 El Camino Real/South San Francisco						100		%							371,668						—						—						—						—						1,930,000						1,930,000
Other value-creation projects						100		%							—						—						—						—						—						25,000						25,000
															2,184,392						798,152						—						467,362						2,171,138						3,256,830						6,693,482
New York City
Mega Campus: Alexandria Center® for Life Science – New York City/New York City						100		%							147,370						—						—						—						550,000			(3)			—						550,000
219 East 42nd Street/New York City						100		%							—						—						—						—						579,947						—						579,947

															$	147,370					—						—						—						1,129,947						—						1,129,947
Refer to “Mega campus” in the “Definitions and reconciliations” of this 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 RSF of buildings currently in operation at properties that also have inherent 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” in the “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties. (2)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” of this Supplemental Information for additional details. (3)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 building of approximately 550,000 SF.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			44



New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
September 30, 2023
(Dollars in thousands)


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						Near Term						Intermediate Term						Future						Total(1)
San Diego
Mega Campus: One Alexandria Square and One Alexandria North/Torrey Pines						100		%							$	338,173					334,996						—						309,094			(2)			125,280						—						769,370
10935, 10945, and 10955 Alexandria Way(3), 11255 and 11355 North Torrey Pines Road, and 10975 and 10995 Torreyana Road
Mega Campus: Campus Point by Alexandria/University Town Center						55.0		%							369,692						171,102						426,927						—						—						1,074,445						1,672,474
10010(4), 10140(4), and 10260 Campus Point Drive and 4110, 4135, 4155, 4161, and 4275(4) Campus Point Court
Mega Campus: SD Tech by Alexandria/Sorrento Mesa						50.0		%							204,829						254,771						—						—						160,000						333,845						748,616
9805 Scranton Road and 10065 and 10075 Barnes Canyon Road
Mega Campus: Sequence District by Alexandria/Sorrento Mesa						100		%							44,780						—						—						200,000						509,000						1,089,915						1,798,915
6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive
Scripps Science Park by Alexandria/Sorrento Mesa						100		%							112,826						—						—						105,000						175,041						318,308						598,349
10048, 10219, 10256, and 10260 Meanley Drive, and 10277 Scripps Ranch Boulevard
Mega Campus: University District/University Town Center						100		%							156,097						—						—						—						937,000						100,000						1,037,000
9363, 9373, 9393, and 9625(5) Towne Centre Drive, 8410-8750 Genesee Avenue, and 4282 Esplanade Court
Pacific Technology Park/Sorrento Mesa						50.0		%							23,210						—						—						—						149,000						—						149,000
9444 Waples Street
Mega Campus: 5200 Illumina Way/University Town Center						51.0		%							17,418						—						—						—						—						451,832						451,832
4025, 4031, 4045, and 4075 Sorrento Valley Boulevard/Sorrento Valley						100		%							38,510						—						—						—						—						247,000						247,000
Other value-creation projects						100		%							71,545						—						—						—						—						475,000						475,000
															$	1,377,080					760,869						426,927						614,094						2,055,321						4,090,345						7,947,556
Refer to “Mega campus” in the “Definitions and reconciliations” of this 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 RSF of buildings currently in operation at properties that also have inherent 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” in the “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties. (2)Represents our near-term project at 11255 and 11355 North Torrey Pines Road, which vertical construction is subject to future market conditions and leasing. (3)Formerly known as 10931 and 10933 North Torrey Pines Road. Refer to “New Class A/A+ development and redevelopment properties: current projects” of this Supplemental Information for additional details. (4)We have a 100% interest in this property. (5)We own a partial interest in this property through a real estate joint venture. Refer to “Joint venture financial information” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			45



New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
September 30, 2023
(Dollars in thousands)


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						Near Term						Intermediate Term						Future						Total(1)
Seattle
Mega Campus: The Eastlake Life Science Campus by Alexandria/Lake Union						100		%							$	361,659					311,631						—						—						—						—						311,631
1150 Eastlake Avenue East
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Bothell						100		%							88,709						148,890						—						50,552						—						—						199,442
3301, 3555, and 3755 Monte Villa Parkway
Mega Campus: Alexandria Center® for Life Science – South Lake Union/Lake Union						(2)									423,069						—						—						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		%							56,587						—						—						—						—						597,313						597,313
Mega Campus: Alexandria Center® for Advanced Technologies – Canyon Park/Bothell						100		%							15,452						—						—						—						—						230,000						230,000
21660 20th Avenue Southeast
Other value-creation projects						100		%							97,620						—						—						—						—						691,000						691,000
															1,043,096						460,521						—						1,146,138						—						1,706,713						3,313,372
Maryland
Mega Campus: Alexandria Center® for Life Science – Shady Grove/Rockville						100		%							293,837						510,601						—						—						258,000						38,000						806,601
9808 Medical Center Drive and 9810, 9820, and 9830 Darnestown Road
															$	293,837					510,601						—						—						258,000						38,000						806,601
Refer to “Mega campus” in the “Definitions and reconciliations” of this 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 RSF of buildings currently in operation at properties that also have inherent 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” in the “Definitions and reconciliations” of this Supplemental Information for additional details on 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 SF and a 60% interest in the near-term development project at 800 Mercer Street aggregating 869,000 SF.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			46



New Class A/A+ Development and Redevelopment Properties: Summary of Pipeline (continued)
September 30, 2023
(Dollars in thousands)


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						Near Term						Intermediate Term						Future						Total(1)
Research Triangle
6040 George Watts Hill Drive, Phase II/Research Triangle						100		%							$	58,730					88,038						—						—						—						—						88,038
Mega Campus: Alexandria Center® for Advanced Technologies – Research Triangle/Research Triangle						100		%							95,789						—						—						180,000						—						990,000						1,170,000
4 and 12 Davis Drive
Mega Campus: Alexandria Center® for NextGen Medicines/ Research Triangle						100		%							103,482						—						—						100,000						100,000						855,000						1,055,000
3029 East Cornwallis Road
Mega Campus: Alexandria Center® for Life Science – Durham/Research Triangle						100		%							173,454						—						—						—						150,000						2,060,000						2,210,000
41 Moore Drive
120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive/Research Triangle						100		%							52,598						—						—						—						—						750,000						750,000
Other value-creation projects						100		%							4,185						—						—						—						—						76,262						76,262
															488,238						88,038						—						280,000						250,000						4,731,262						5,349,300
Texas
Alexandria Center® for Advanced Technologies at The Woodlands/Greater Houston						100		%							72,443						73,298						—						—						—						116,405						189,703
8800 Technology Forest Place
1020 Red River Street/Austin						100		%							9,327						—						—						—						—						177,072						177,072
Other value-creation projects						100		%							133,084						—						—						—						—						1,694,000						1,694,000
															214,854						73,298						—						—						—						1,987,477						2,060,775

Canada						100		%							42,057						183,556						—						—						—						371,743						555,299
Other value-creation projects						100		%							103,411						—						—						—						—						724,349						724,349
Total pipeline as of September 30, 2023															$	9,516,928		(2)			5,552,506						818,938						3,007,032						6,038,906						22,254,380						37,671,762

Refer to “Mega campus” in the “Definitions and reconciliations” of this Supplemental Information for additional details.

(1)Total square footage includes 4,151,793 RSF of buildings currently in operation that we intend to demolish or redevelop and commence future construction. Refer to “Investments in real estate” in the “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties.

(2)Total book value includes $4.5 billion of projects currently under construction that are 67% leased/negotiating. We also expect to commence construction on two near-term projects aggregating $386.7 million, which are 59% leased, in the next three quarters after September 30, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			47



Construction Spending and Capitalization of Interest
September 30, 2023
(Dollars In thousands)

68% of RSF in Our Value-Creation Pipeline Is Within Our Existing Mega Campuses


						Upon Completion of Construction
						Additional Operating RSF						Growth in Operating RSF

Under construction and committed near-term projects(1)						6,371,444						81%
Value-add pre-construction: primarily mega campus entitlement, permitting, design, and site work						27,148,525
Value-creation pipeline: developments and redevelopments						33,519,969


Key Categories of Interest Capitalized During YTD 3Q23						Percentage of Total Capitalized Interest
Value-creation pipeline: developments and redevelopments									88		%
Smaller redevelopments and repositioning capital projects									12
									100		%



						Nine Months Ended September 30, 2023												Projected Midpoint for the Year Ending December 31, 2023
Construction Spending
Construction spending(2)						$			2,775,816									$			3,471,000						(3)
Contributions from partners in our existing consolidated real estate joint ventures									(358,808)												(536,000)
Total construction spending						$			2,417,008									$			2,935,000
Guidance range																		$2,785,000 – $3,085,000


Contributions From Partners in Our Existing Consolidated Real Estate Joint Ventures
Projected Timing						Amount(4)
4Q23						$	177,000
2024 through 2026						1,054,000
Total						$	1,231,000

(1)Represents projects under construction aggregating 5.6 million RSF and two near-term projects aggregating 0.8 million RSF expected to commence construction during the next three quarters after September 30, 2023, which are 66% leased/negotiating and are expected to generate $580 million in annual incremental net operating income from 4Q23 through 3Q26.

(2)Includes our contributions in unconsolidated real estate joint ventures related to construction.

(3)Includes projected revenue-enhancing/repositioning capital expenditures and non-revenue-enhancing capital expenditures of $147 million and $60 million, respectively.

(4)Amounts represent reductions to our consolidated construction spending.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			48




Joint Venture Financial Information
September 30, 2023


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%												388,270
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%												—			(2)
15 Necco Street						Greater Boston						Seaport Innovation District									39.7%			(3)									—			(2)
Other joint venture						Greater Boston						–									39.0%												—			(2)
Alexandria Center® for Science and Technology – Mission Bay(4)						San Francisco Bay Area						Mission Bay									75.0%												1,005,236
1450 Owens Street						San Francisco Bay Area						Mission Bay									57.2%			(5)									—			(2)
601, 611, 651(2), 681, 685, and 701 Gateway Boulevard						San Francisco Bay Area						South San Francisco									50.0%												785,444
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									53.3%												—			(2)
3215 Merryfield Row						San Diego						Torrey Pines									70.0%												170,523
Campus Point by Alexandria(6)						San Diego						University Town Center									45.0%												1,337,916
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(7)						San Diego						Sorrento Mesa									50.0%												881,992
Pacific Technology Park						San Diego						Sorrento Mesa									50.0%												544,352
Summers Ridge Science Park(8)						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(9)												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%			(10)									(11)
1450 Research Boulevard						Maryland						Rockville									73.2%			(10)									42,679
101 West Dickman Street						Maryland						Beltsville									57.9%			(10)									135,423

(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” for additional details.

(3)The noncontrolling interest share is expected to increase to 43% as one of our joint venture partners contributes the remaining costs to complete the project over time.

(4)Includes 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South.

(5)The noncontrolling interest share of our joint venture partner is anticipated to increase to 75% as our partner contributes the remaining cost to complete the project over time.

(6)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4135, 4155, 4161, 4224, and 4242 Campus Point Court.

(7)Includes 9605, 9645, 9675, 9685, 9725, 9735, 9805, 9808, 9855, and 9868 Scranton Road and 10055, 10065, and 10075 Barnes Canyon Road.

(8)Includes 9965, 9975, 9985, and 9995 Summers Ridge Road.

(9)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.

(10)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.

(11)Represents a joint venture with a distinguished retail real estate developer for a retail shopping center aggregating 84,837 RSF.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			49



Joint Venture Financial Information (continued)
September 30, 2023
(In thousands)


						As of September 30, 2023
			Noncontrolling Interest Share of Consolidated Real Estate JVs												Our Share of Unconsolidated Real Estate JVs
Investments in real estate			$			3,829,663									$			119,693
Cash, cash equivalents, and restricted cash						147,573												5,438
Other assets						403,541												11,886
Secured notes payable (refer to page 54)						(27,123)												(92,096)
Other liabilities						(268,683)												(7,226)
Redeemable noncontrolling interests						(51,658)												—
			$			4,033,313									$			37,695



			Noncontrolling Interest Share of Consolidated Real Estate JVs																								Our Share of Unconsolidated Real Estate JVs
			September 30, 2023																								September 30, 2023
			Three Months Ended												Nine Months Ended												Three Months Ended												Nine Months Ended
Total revenues			$			105,610									$			308,922									$			2,837									$			8,236
Rental operations						(32,384)												(91,274)												(822)												(2,372)
						73,226												217,648												2,015												5,864
General and administrative						(624)												(1,441)												(5)												(71)
Interest						(5)												(15)												(858)												(2,552)
Depreciation and amortization of real estate assets						(28,814)												(85,212)												(910)												(2,624)

Fixed returns allocated to redeemable noncontrolling interests(1)						202												604												—												—
			$			43,985									$			131,584									$			242									$			617

Straight-line rent and below-market lease revenue			$			4,154									$			12,988									$			329									$			912
Funds from operations(2)			$			72,799									$			216,796									$			1,152									$			3,241

(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 our Earnings Press Release and “Funds from operations and funds from operations, as adjusted, attributable to Alexandria’s common stockholders” in the “Definitions and reconciliations” of this Supplemental Information for the definition and its reconciliation from the most directly comparable financial measure presented in accordance with GAAP.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			50



Investments
September 30, 2023
(Dollars in thousands)

We hold investments in publicly traded companies and privately held entities primarily involved in the life science, agtech, and technology industries. The tables below summarize components of our investment income (loss) and non-real estate investments (in thousands). For additional details, refer to “Investments” in the “Definitions and reconciliations” of this Supplemental Information.


						September 30, 2023																		Year Ended December 31, 2022
						Three Months Ended									Nine Months Ended
Realized (losses) gains						$	(3,470)		(1)						$	16,903		(1)						$	80,435
Unrealized losses						(77,202)			(2)						(220,954)			(2)						(412,193)			(3)
Investment loss						$	(80,672)								$	(204,051)								$	(331,758)


						September 30, 2023																								December 31, 2022
Investments						Cost						Unrealized Gains						Unrealized Losses						Carrying Amount						Carrying Amount

Publicly traded companies						$	197,822					$	41,225					$	(109,461)					$	129,586					$	207,139
Entities that report NAV						492,151						191,378						(24,740)						658,789						759,752
Entities that do not report NAV:
Entities with observable price changes						104,105						78,845						(1,224)						181,726						193,784
Entities without observable price changes						387,755						—						—						387,755						388,940
Investments accounted for under the equity method						N/A						N/A						N/A						73,910						65,459
September 30, 2023						$	1,181,833		(4)			$	311,448					$	(135,425)					$	1,431,766					$	1,615,074

December 31, 2022						$	1,152,613					$	506,404					$	(109,402)					$	1,615,074


Public/Private Mix (Cost)						Tenant/Non-Tenant Mix (Cost)

(1)Consists of realized gains of $25.0 million and $68.4 million, offset by impairment charges of $28.5 million and $51.5 million during the three and nine months ended September 30, 2023, respectively.

(2)Consists of unrealized losses of $58.1 million and $145.9 million primarily resulting from the decrease in the fair value of our investments in privately held entities that report NAV, and $19.1 million and $75.1 million of accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our sales of investments during the three and nine months ended September 30, 2023, respectively.

(3)Consists of unrealized losses of $274.2 million primarily resulting from the decrease in the fair value of our investments in publicly traded companies, and $138.0 million of accounting reclassifications of unrealized gains recognized in prior periods into realized gains upon our sales of investments, during the year ended December 31, 2022.

(4)Represents 2.8% of gross assets as of September 30, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			51




Key Credit Metrics
September 30, 2023

Liquidity

Minimal Outstanding Borrowings and Significant Availability on Unsecured Senior Line of Credit

(in millions)

$5.9B

(in millions)

Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program

$

5,000

Outstanding forward equity sales agreements(1)

103

Cash, cash equivalents, and restricted cash

568

Remaining construction loan commitments

86

Investments in publicly traded companies

130

Liquidity as of September 30, 2023

$

5,887

Net Debt and Preferred Stock to Adjusted EBITDA(2)

Fixed-Charge Coverage Ratio(2)

(1)Represents expected net proceeds from the future settlement of 699 thousand shares of common stock under forward equity sales agreements after underwriter discounts.

(2)Quarter annualized. Refer to “Fixed-charge coverage ratio” and “Net debt and preferred stock to Adjusted EBITDA” in the “Definitions and reconciliations” of this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			52



Summary of Debt
September 30, 2023
(In millions)

Weighted-Average Remaining Term of 13.1 Years

(1)Refer to footnotes 2 through 4 on the next page under “Fixed-rate and variable-rate debt” for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			53



Summary of Debt (continued)
September 30, 2023
(Dollars in thousands)


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					$	108,491					$	109,110					1.0		%				8.35		%				3.2
Unsecured senior notes payable			11,093,725						—						11,093,725						99.0						3.65						13.2
Unsecured senior line of credit(2) and commercial paper program(3)			—						—						—						—						N/A						4.3			(4)
Total/weighted average			$	11,094,344					$	108,491					$	11,202,835					100.0		%				3.70		%				13.1			(4)
Percentage of total debt			99.0		%				1.0		%				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 September 30, 2023, we had no outstanding balance on our unsecured senior line of credit.

(3)In July 2023, we increased the aggregate amount we may issue from time to time under our commercial paper program to $2.5 billion from $2.0 billion. The commercial paper program provides us with the ability to issue 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+0.835%. As of September 30, 2023, we had no commercial paper notes outstanding.

(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 13.1 years. The commercial paper notes sold during the nine months ended September 30, 2023 were issued at a weighted-average yield to maturity of 5.15% and had a weighted-average maturity term of 13 days.



Average debt outstanding and weighted-average interest rate						Average Debt Outstanding												Weighted-Average Interest Rate
						September 30, 2023												September 30, 2023
						Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
Long-term fixed-rate debt						$	11,171,888					$	11,005,567					3.64		%				3.61		%
Short-term variable-rate unsecured senior line of credit and commercial paper program debt						—						88,353						N/A						5.53
Blended average interest rate						11,171,888						11,093,920						3.64						3.63
Loan fee amortization and annual facility fee related to unsecured senior line of credit						N/A						N/A						0.13						0.12
Total/weighted average						$	11,171,888					$	11,093,920					3.77		%				3.75		%


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			54



Summary of Debt (continued)
September 30, 2023
(Dollars in thousands)

Debt covenants

Unsecured Senior Notes Payable

Unsecured Senior Line of Credit

Debt Covenant Ratios(1)

Requirement

September 30, 2023

Requirement

September 30, 2023

Total Debt to Total Assets

≤ 60%

28%

≤ 60.0%

27.3%

Secured Debt to Total Assets

≤ 40%

0.3%

≤ 45.0%

0.2%

Consolidated EBITDA to Interest Expense

≥ 1.5x

22.4x

≥ 1.50x

4.22x

Unencumbered Total Asset Value to Unsecured Debt

≥ 150%

348%

N/A

N/A

Unsecured Interest Coverage Ratio

N/A

N/A

≥ 1.75x

36.96x

(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					$	28,288					65.0%
1655 and 1725 Third Street						3/10/25						4.50%									4.57%									600,000						599,399						10.0%
101 West Dickman Street						11/10/26						SOFR+1.95%			(3)						7.37%									26,750						13,949						57.9%
1450 Research Boulevard						12/10/26						SOFR+1.95%			(3)						7.43%									13,000						7,765						73.2%
																														$	668,250					$	649,401

(1)Includes interest expense and amortization of loan fees.

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of September 30, 2023.

(3)This loan is subject to a fixed SOFR floor rate of 0.75%.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			55



Summary of Debt (continued)
September 30, 2023
(Dollars in thousands)


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
																											2023						2024						2025						2026						2027						Thereafter
Secured notes payable
Greater Boston(3)						SOFR+2.70		%				8.36		%							11/19/26						$	—					$	—					$	—					$	109,295					$	—					$	—					$	109,295					$	(804)					$	108,491
San Francisco Bay Area						6.50		%				6.50									7/1/36						—						32						34						36						38						479						619						—						619
Secured debt weighted-average interest rate/subtotal												8.35															—						32						34						109,331						38						479						109,914						(804)						109,110

Unsecured senior line of credit and commercial paper program(4)						(4)						N/A			(4)						1/22/28			(4)			(4)						—						—						—						—						—			(4)			—						—						—
Unsecured senior notes payable						3.45		%				3.62									4/30/25						—						—						600,000						—						—						—						600,000						(1,402)						598,598
Unsecured senior notes payable						4.30		%				4.50									1/15/26						—						—						—						300,000						—						—						300,000						(1,144)						298,856
Unsecured senior notes payable – green bond						3.80		%				3.96									4/15/26						—						—						—						350,000						—						—						350,000						(1,265)						348,735
Unsecured senior notes payable						3.95		%				4.13									1/15/27						—						—						—						—						350,000						—						350,000						(1,699)						348,301
Unsecured senior notes payable						3.95		%				4.07									1/15/28						—						—						—						—						—						425,000						425,000						(1,838)						423,162
Unsecured senior notes payable						4.50		%				4.60									7/30/29						—						—						—						—						—						300,000						300,000						(1,304)						298,696
Unsecured senior notes payable						2.75		%				2.87									12/15/29						—						—						—						—						—						400,000						400,000						(2,574)						397,426
Unsecured senior notes payable						4.70		%				4.81									7/1/30						—						—						—						—						—						450,000						450,000						(2,518)						447,482
Unsecured senior notes payable						4.90		%				5.05									12/15/30						—						—						—						—						—						700,000						700,000						(5,706)						694,294
Unsecured senior notes payable						3.375		%				3.48									8/15/31						—						—						—						—						—						750,000						750,000						(5,149)						744,851
Unsecured senior notes payable – green bond						2.00		%				2.12									5/18/32						—						—						—						—						—						900,000						900,000						(8,116)						891,884
Unsecured senior notes payable						1.875		%				1.97									2/1/33						—						—						—						—						—						1,000,000						1,000,000						(8,192)						991,808
Unsecured senior notes payable – green bond						2.95		%				3.07									3/15/34						—						—						—						—						—						800,000						800,000						(8,177)						791,823
Unsecured senior notes payable – green bond						4.75		%				4.88									4/15/35						—						—						—						—						—						500,000						500,000						(5,524)						494,476
Unsecured senior notes payable						4.85		%				4.93									4/15/49						—						—						—						—						—						300,000						300,000						(3,016)						296,984
Unsecured senior notes payable						4.00		%				3.91									2/1/50						—						—						—						—						—						700,000						700,000						10,140						710,140
Unsecured senior notes payable						3.00		%				3.08									5/18/51						—						—						—						—						—						850,000						850,000						(11,703)						838,297
Unsecured senior notes payable						3.55		%				3.63									3/15/52						—						—						—						—						—						1,000,000						1,000,000						(14,221)						985,779
Unsecured senior notes payable						5.15		%				5.26									4/15/53						—						—						—						—						—						500,000						500,000						(7,867)						492,133
Unsecured debt weighted average/subtotal												3.65															—						—						600,000						650,000						350,000						9,575,000						11,175,000						(81,275)						11,093,725
Weighted-average interest rate/total												3.70		%													$	—					$	32					$	600,034					$	759,331					$	350,038					$	9,575,479					$	11,284,914					$	(82,079)					$	11,202,835

Balloon payments																											$	—					$	—					$	600,000					$	759,295					$	350,000					$	9,575,068					$	11,284,363					$	—					$	11,284,363
Principal amortization																											—						32						34						36						38						411						551						(82,079)						(81,528)
Total debt																											$	—					$	32					$	600,034					$	759,331					$	350,038					$	9,575,479					$	11,284,914					$	(82,079)					$	11,202,835

Fixed-rate debt																											$	—					$	32					$	600,034					$	650,036					$	350,038					$	9,575,479					$	11,175,619					$	(81,275)					$	11,094,344
Variable-rate debt																											—						—						—						109,295						—						—						109,295						(804)						108,491
Total debt																											$	—					$	32					$	600,034					$	759,331					$	350,038					$	9,575,479					$	11,284,914					$	(82,079)					$	11,202,835

Weighted-average stated rate on maturing debt																											N/A						N/A						3.45%						3.84%						3.95%						3.50%

(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 at 99 Coolidge Avenue, of which we have a 75.0% interest. As of September 30, 2023, this joint venture has $86.0 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 the “Fixed-rate and variable-rate debt” subsection of this “Summary of Debt.”


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			56




Definitions and Reconciliations
September 30, 2023

This section contains additional details for sections throughout this 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)			9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Net income			$	68,254					$	133,705					$	121,693					$	95,268					$	383,443
Interest expense			11,411						17,072						13,754						17,522						22,984
Income taxes			1,183						2,251						1,131						2,063						1,950
Depreciation and amortization			269,370						273,555						265,302						264,480						254,929
Stock compensation expense			16,288						15,492						16,486						11,586						17,786

Gain on sales of real estate			—						(214,810)						—						—						(323,699)

Unrealized losses on non-real estate investments			77,202						77,897						65,855						24,117						56,515
Impairment of real estate			20,649						168,575						—						26,186						38,783
Impairment of non-real estate investments			28,503						22,953						—						20,512						—
Adjusted EBITDA			$	492,860					$	496,690					$	484,221					$	461,734					$	452,691

Total revenues			$	713,788					$	713,900					$	700,795					$	670,281					$	659,852

Adjusted EBITDA margin			69%						70%						69%						69%						69%

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.

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 September 30, 2023, approximately 92% 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, for the quarter preceding the date on which the property is sold, or near-term prospective net operating income.


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Definitions and Reconciliations (continued)
September 30, 2023

Capitalized interest

We capitalize interest cost as a cost of a project during periods for which activities necessary to develop or redevelop 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 or redevelop 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. Such locations are generally characterized by high barriers to entry for new landlords, high barriers to exit for tenants, and a limited supply of available space.

Competitive supply

Represents the total rentable square footage of laboratory space under development or redevelopment that is both: (i) available for direct lease, and (ii) we believe is competitive with our laboratory space within a given submarket. Total competitive supply excludes owner user space.

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, agtech, and advanced technology 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, and are reusable by, 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 facilities. Redevelopment projects consist of the permanent change in use of office, warehouse, and shell space into laboratory, agtech, or tech space. We generally will not commence new development projects for aboveground construction of new Class A/A+ laboratory, agtech, and tech space without first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class A/A+ properties.

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.

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.


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Definitions and Reconciliations (continued)
September 30, 2023

Fixed-charge coverage ratio

Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to 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)			9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Adjusted EBITDA			$	492,860					$	496,690					$	484,221					$	461,734					$	452,691

Interest expense			$	11,411					$	17,072					$	13,754					$	17,522					$	22,984
Capitalized interest			96,119						91,674						87,070						79,491						73,189
Amortization of loan fees			(4,059)						(3,729)						(3,639)						(3,975)						(3,235)
Amortization of debt discounts			(306)						(304)						(288)						(272)						(269)
Cash interest and fixed charges			$	103,165					$	104,713					$	96,897					$	92,766					$	92,669

Fixed-charge coverage ratio:
– quarter annualized			4.8x						4.7x						5.0x						5.0x						4.9x
– trailing 12 months			4.9x						4.9x						5.0x						5.0x						5.1x

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, gains or losses on early extinguishment of debt, significant termination fees, acceleration of stock compensation expense due to the resignation of an executive officer, 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.

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
			September 30, 2023												September 30, 2023
(In thousands)			Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
Net income			$	43,985					$	131,584					$	242					$	617
Depreciation and amortization of real estate assets			28,814						85,212						910						2,624

Funds from operations			$	72,799					$	216,796					$	1,152					$	3,241

Gross assets

Gross assets are calculated as total assets plus accumulated depreciation:


(In thousands)			9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Total assets			$	36,783,293					$	36,659,257					$	36,912,465					$	35,523,399					$	34,368,614
Accumulated depreciation			4,856,436						4,646,833						4,561,854						4,354,063						4,148,230
Gross assets			$	41,639,729					$	41,306,090					$	41,474,319					$	39,877,462					$	38,516,844


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Definitions and Reconciliations (continued)
September 30, 2023

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 September 30, 2023, 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.


Space Intentionally Blank
Space Intentionally Blank

Investments

We hold investments in publicly traded companies and privately held entities primarily involved in the life science, agtech, and technology 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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Definitions and Reconciliations (continued)
September 30, 2023

Investments in real estate

The following table reconciles our investments in real estate as of September 30, 2023:


(In thousands)						Investments in Real Estate
Gross investments in real estate – North America						$	36,565,011
Less: accumulated depreciation – North America						(4,852,280)
Net investments in real estate – North America						31,712,731
Net investments in real estate – Asia						—
Investments in real estate						$	31,712,731

The following table presents our value-creation pipeline of new Class A/A+ development and redevelopment projects as a percentage of gross assets as of September 30, 2023:


						Percentage of Gross Assets
Under construction projects 67% leased/negotiating						11%
Near-term projects expected to commence construction in the next three quarters 59% leased						1%
Income-producing/potential cash flows/covered land play(1)						8%
Land						3%

(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 1.1% of total annual rental revenue as of September 30, 2023 and are included in our industry mix chart as targeted for a future change in use. Refer to “High-quality and diverse client base in AAA locations” of this Supplemental Information.


Space Intentionally Blank
Space Intentionally Blank

The square footage presented in the table below is classified as operating as of September 30, 2023. 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												2023						2024						Thereafter(1)						Total
Near-term projects:
311 Arsenal Street/Cambridge/Inner Suburbs						Redev						—						308,446						—						308,446
269 East Grand Avenue/South San Francisco						Redev						—						107,250						—						107,250
3301 Monte Villa Parkway/Bothell						Redev						—						50,552						—						50,552
												—						466,248						—						466,248
Intermediate-term projects:
100 Edwin H. Land Boulevard/Cambridge						Dev						—						104,500						—						104,500
219 East 42nd Street/New York City						Dev						—						—						349,947						349,947
10975 and 10995 Torreyana Road/Torrey Pines						Dev						—						84,829						—						84,829
												—						189,329						349,947						539,276
Future projects:
446, 458, 500, and 550 Arsenal Street/Cambridge/Inner Suburbs						Dev						—						—						392,583						392,583
380 and 420 E Street/Seaport Innovation District						Dev						—						—						195,506						195,506
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
960 Industrial Road/Greater Stanford						Dev						—						—						110,000						110,000
Campus Point by Alexandria/University Town Center						Dev						—						495,192						—						495,192
Sequence District by Alexandria/Sorrento Mesa						Dev/Redev						—						—						684,866						684,866
830 4th Avenue South/SoDo						Dev						—						—						42,380						42,380
Other/Seattle						Dev						—						—						81,184						81,184
1020 Red River Street/Austin						Redev						—						—						126,034						126,034
Canada						Redev						—						—						247,743						247,743
												—						495,192						2,651,077						3,146,269
												—						1,150,769						3,001,024						4,151,793

(1)Includes vacant square footage as of September 30, 2023.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			61




Definitions and Reconciliations (continued)
September 30, 2023

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 held for sale assets 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 September 30, 2023 (dollars in thousands):


						Annual Rental Revenue						Value-Creation Pipeline RSF
Mega campus						$	1,526,731					25,720,103
Non-mega campus						503,717						11,951,659
Total						$	2,030,448					37,671,762

Mega campus as a percentage of total annual rental revenue/total value-creation pipeline RSF						75		%				68		%

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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Definitions and Reconciliations (continued)
September 30, 2023

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)						9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Secured notes payable						$	109,110					$	91,939					$	73,645					$	59,045					$	40,594
Unsecured senior notes payable						11,093,725						11,091,424						11,089,124						10,100,717						10,098,588
Unsecured senior line of credit and commercial paper						—						—						374,536						—						386,666
Unamortized deferred financing costs						78,496						80,663						82,831						74,918						76,947
Cash and cash equivalents						(532,390)						(924,370)						(1,263,452)						(825,193)						(533,824)
Restricted cash						(35,321)						(35,920)						(34,932)						(32,782)						(332,344)
Preferred stock						—						—						—						—						—
Net debt and preferred stock						$	10,713,620					$	10,303,736					$	10,321,752					$	9,376,705					$	9,736,627

Adjusted EBITDA:
– quarter annualized						$	1,971,440					$	1,986,760					$	1,936,884					$	1,846,936					$	1,810,764
– trailing 12 months						$	1,935,505					$	1,895,336					$	1,848,018					$	1,797,536					$	1,743,613

Net debt and preferred stock to Adjusted EBITDA:
– quarter annualized						5.4		x				5.2		x				5.3		x				5.1		x				5.4		x
– trailing 12 months						5.5		x				5.4		x				5.6		x				5.2		x				5.6		x

Net operating income, net operating income (cash basis), and operating margin

The following table reconciles net income to net operating income and net operating income (cash basis) and computes operating margin:


						Three Months Ended												Nine Months Ended
(Dollars in thousands)						9/30/23						9/30/22						9/30/23						9/30/22
Net income						$	68,254					$	383,443					$	323,652					$	575,433

Equity in earnings of unconsolidated real estate joint ventures						(242)						(40)						(617)						(473)
General and administrative expenses						45,987						49,958						140,065						134,286
Interest expense						11,411						22,984						42,237						76,681
Depreciation and amortization						269,370						254,929						808,227						737,666
Impairment of real estate						20,649						38,783						189,224						38,783
Loss on early extinguishment of debt						—						—						—						3,317
Gain on sales of real estate						—						(323,699)						(214,810)						(537,918)
Investment loss						80,672						32,305						204,051						312,105
Net operating income						496,101						458,663						1,492,029						1,339,880
Straight-line rent revenue						(29,805)						(24,431)						(92,331)						(93,818)
Amortization of acquired below-market leases						(23,222)						(23,546)						(69,647)						(54,221)
Net operating income (cash basis)						$	443,074					$	410,686					$	1,330,051					$	1,191,841

Net operating income (cash basis) – annualized						$	1,772,296					$	1,642,744					$	1,773,401					$	1,589,121

Net operating income (from above)						$	496,101					$	458,663					$	1,492,029					$	1,339,880
Total revenues						$	713,788					$	659,852					$	2,128,483					$	1,918,681
Operating margin						70%						70%						70%						70%

Net operating income is a non-GAAP financial measure calculated as net income, 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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Definitions and Reconciliations (continued)
September 30, 2023

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, office rent, and office 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.


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Definitions and Reconciliations (continued)
September 30, 2023

The following table reconciles the number of same properties to total properties for the nine months ended September 30, 2023:


												Redevelopment – placed into
Development – under construction						Properties						service after January 1, 2022						Properties
201 Brookline Avenue						1						3160 Porter Drive						1
15 Necco Street						1						5505 Morehouse Drive						1
325 Binney Street						1						The Arsenal on the Charles						11
1150 Eastlake Avenue East						1						30-02 48th Avenue						1
9810 and 9820 Darnestown Road						2						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						20400 Century Boulevard						1
												140 First Street						1
												9601 and 9603 Medical Center Drive						2
9808 Medical Center Drive						1												21
6040 George Watts Hill Drive						1						Acquisitions after January 1, 2022						Properties
1450 Owens Street						1						3301, 3303, 3305, and 3307 Hillview Avenue						4
230 Harriet Tubman Way						1
4155 Campus Point Court						1						8505 Costa Verde Boulevard and 4260 Nobel Drive						2
10935, 10945, and 10955 Alexandria Way						3
												225 and 235 Presidential Way						2
10075 Barnes Canyon Road						1						104 TW Alexander Drive						4
						18						One Hampshire Street						1
Development – placed into												Intersection Campus						9
service after January 1, 2022						Properties						100 Edwin H. Land Boulevard						1
825 and 835 Industrial Road						2						10010 and 10140 Campus Point Drive and 4275 Campus Point Court						3
9950 Medical Center Drive						1
3115 Merryfield Row						1						446 and 458 Arsenal Street						2
8 and 10 Davis Drive						2						35 Gatehouse Drive						1
5 and 9 Laboratory Drive						2						1001 Trinity Street and 1020 Red River Street						2
10055 Barnes Canyon Road						1
10102 Hoyt Park Drive						1						Other						10
751 Gateway Boulevard						1												41
						11						Unconsolidated real estate JVs						4
Redevelopment – under construction						Properties						Properties held for sale						4
840 Winter Street						1						Total properties excluded from same properties						118
40, 50, and 60 Sylvan Road						3
Alexandria Center® for Advanced Technologies – Monte Villa Parkway						6						Same properties						301
												Total properties in North America as of September 30, 2023						419
651 Gateway Boulevard						1
401 Park Drive						1
8800 Technology Forest Place						1
Canada						4
Other						2
						19

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” of 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																														Nine Months Ended
(In thousands)			9/30/23						6/30/23						3/31/23						12/31/22						9/30/22						9/30/23						9/30/22
Income from rentals			$	707,531					$	704,339					$	687,949					$	665,674					$	656,853					$	2,099,819					$	1,910,366
Rental revenues			(526,352)						(537,889)						(518,302)						(499,348)						(496,146)						(1,582,543)						(1,450,750)
Tenant recoveries			$	181,179					$	166,450					$	169,647					$	166,326					$	160,707					$	517,276					$	459,616

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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Definitions and Reconciliations (continued)
September 30, 2023

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)			9/30/23						6/30/23						3/31/23						12/31/22						9/30/22
Unencumbered net operating income			$	495,012					$	500,923					$	492,860					$	464,944					$	457,656
Encumbered net operating income			1,089						1,143						1,002						985						1,007
Total net operating income			$	496,101					$	502,066					$	493,862					$	465,929					$	458,663
Unencumbered net operating income as a percentage of total net operating income			100%						100%						100%						100%						100%

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.


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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 September 30, 2023, we had Forward Agreements outstanding to sell an aggregate of 699 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																														Nine Months Ended
(In thousands)			9/30/23						6/30/23						3/31/23						12/31/22						9/30/22						9/30/23						9/30/22
Basic shares for earnings per share			170,890						170,864						170,784						165,393						161,554						170,846						160,400
Forward Agreements			—						—						—						—						—						—						—
Diluted shares for earnings per share			170,890						170,864						170,784						165,393						161,554						170,846						160,400

Basic shares for funds from operations per share and funds from operations per share, as adjusted			170,890						170,864						170,784						165,393						161,554						170,846						160,400
Forward Agreements			—						—						—						—						—						—						—
Diluted shares for funds from operations per share and funds from operations per share, as adjusted			170,890						170,864						170,784						165,393						161,554						170,846						160,400

Weighted-average unvested restricted shares used in the allocations of net income, funds from operations, and funds from operations, as adjusted			2,124						2,163						2,277						1,614						1,648						2,187						1,759


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023			66

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

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All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

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