Enhanced Investments - Financial Portal

Published: 2022-07-25 00:00:00 ET

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			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022


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(1)Represents annual rental revenue in effect as of June 30, 2022.

(2)As of June 30, 2022. 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.

(3)Represents annual rental revenue currently generated from space that is targeted for a future change in use. The weighted-average remaining term of these leases is 4.2 years.

(4)Our other tenants, aggregating 4.0% of our annual rental revenue, comprise 3.0% of annual rental revenue from technology, professional services, finance, telecommunications, and construction/real estate companies and only 1.0% from retail-related tenants.


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As of June 30, 2022.

(1)We may also commence additional projects in this time frame, subject to market conditions.


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(1)Represents dividend declared on June 30, 2022, annualized.


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(1)As of June 30, 2022. Refer to “Key credit metrics” of our Supplemental Information for additional details.

(2)As of June 30, 2022.

(3)As of June 30, 2022. 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)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 Moody’s Investors Service and S&P Global Ratings for publicly traded U.S. REITs, from Bloomberg Professional Services as of June 30, 2022.


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(2)As of June 30, 2022. Refer to “Key credit metrics” of our Supplemental Information for additional details.

(3)Quarter annualized.

(4)As of June 30, 2022.


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(1)Source: Barron’s, “10 Real Estate Companies That Are Both Greener and More Profitable,” February 19, 2022.


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Environmental data for 2021 reflected in the chart above received independent limited assurance from DNV Business Assurance USA, Inc.

(1)2025 environmental goal for Alexandria’s cumulative progress relative to a 2015 baseline on a like-for-like basis for buildings in operation that the company directly manages.

(2)2025 environmental goal for buildings in operation that Alexandria indirectly and directly manages. In alignment with industry best practice, the company reports waste diversion annually; the 2025 goal is to

achieve a waste diversion rate of at least 45% by 2025.

(3)Progress toward 2025 goal.


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Table of Contents
June 30, 2022


EARNINGS PRESS RELEASE	Page		Page
Second Quarter Ended June 30, 2022 Financial and Operating Results	1	Earnings Call Information and About the Company	8
Acquisitions	4	Consolidated Statements of Operations	9
Dispositions and Sales of Partial Interest	5	Consolidated Balance Sheets	10
Guidance	6	Funds From Operations and Funds From Operations per Share	11

SUPPLEMENTAL INFORMATION	Page		Page
Company Profile	14	External Growth / Investments in Real Estate
Investor Information	15	Investments in Real Estate	33
Financial and Asset Base Highlights	16	New Class A Development and Redevelopment Properties:
High-Quality, Diverse, and Innovative Tenants	18	Recent Deliveries	35
Class A Properties in AAA Locations	19	Current Projects	38
Occupancy	20	Summary of Pipeline	43
Internal Growth		Construction Spending	47
Key Operating Metrics	21	Joint Venture Financial Information	48
Same Property Performance	22	Balance Sheet Management
Leasing Activity	23	Investments	50
Contractual Lease Expirations	24	Key Credit Metrics	51
Top 20 Tenants	25	Summary of Debt	52
Summary of Properties and Occupancy	26	Definitions and Reconciliations
Property Listing	27	Definitions and Reconciliations	55

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.


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Alexandria Real Estate Equities, Inc. Reports:

2Q22 and 1H22 Net Income per Share – Diluted of $1.67 and $0.74, respectively; and

2Q22 and 1H22 FFO per Share – Diluted, As Adjusted, of $2.10 and $4.15, respectively

PASADENA, Calif. – July 25, 2022 – Alexandria Real Estate Equities, Inc. (NYSE:ARE) announced financial and operating results for the second quarter ended June 30, 2022.


Key highlights
Operating results	2Q22			2Q21		1H22			1H21
Total revenues:
In millions	$	643.8		$	509.6	$	1,258.8		$	989.5
Growth	26.3		%			27.2		%
Net income attributable to Alexandria’s common stockholders – diluted
In millions	$	269.3		$	380.6	$	118.5		$	388.5
Per share	$	1.67		$	2.61	$	0.74		$	2.74
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted
In millions	$	338.8		$	282.3	$	663.4		$	545.2
Per share	$	2.10		$	1.93	$	4.15		$	3.84

Ringing of the New York Stock Exchange Opening Bell to celebrate our 25th anniversary

In celebration of our 25th anniversary as a publicly traded company, we recently rang The Opening Bell® at the New York Stock Exchange to mark this momentous milestone. From our initial public offering on May 27, 1997 through May 27, 2022, we have generated a total stockholder return (“TSR”) of 1,902%, assuming reinvestment of dividends, substantially outperforming the MSCI U.S. REIT Index TSR of 803% and the FTSE Nareit Equity Office Index TSR of 457%.

A REIT industry-leading high-quality roster of over 1,000 tenants with high-quality revenues and cash flows, strong margins, and operational excellence


Percentage of total annual rental revenue in effect from investment-grade or publicly traded large cap tenants	50		%

Sustained strength in tenant collections:
Tenant receivables as of June 30, 2022	$	7.1		million
July tenant rent and receivables collected as of July 25, 2022	99.9		%

Occupancy of operating properties in North America	94.6		%
Occupancy of operating properties in North America (excluding vacancy at recently acquired properties)	98.4		%	(1)
Operating margin	70		%
Adjusted EBITDA margin	70		%

Weighted-average remaining lease term:
All tenants	7.1			years
Top 20 tenants	10.2			years

(1)Excludes 1.6 million RSF, or 3.8%, of vacancy at recently acquired properties representing lease-up opportunities that are expected to provide incremental annual rental revenue. Refer to “Occupancy” in our Supplemental Information.

(1)

Record rental rate increases and continued historic high leasing volume

•For 2Q22, rental rate increases of 45.4% and 33.9% (cash basis) represent the second- highest and the highest quarterly increases in Company history, respectively.

•During 2Q22, we executed 2,279,758 RSF of leasing activity, representing the third-highest quarter of leasing volume in Company history; 87% of this leasing activity was generated from a roster of over 1,000 tenants and other relationships.


	2Q22	1H22
Total leasing activity – RSF	2,279,758	4,743,196
Leasing of development and redevelopment space – RSF	916,436	2,356,132
Lease renewals and re-leasing of space:
RSF (included in total leasing activity above)	1,087,082	1,951,159
Rental rate increases	45.4%	39.0%
Rental rate increases (cash basis)	33.9%	25.2%

Continued strong net operating income and internal growth

•Net operating income (cash basis) of $1.6 billion for 2Q22 annualized, up $315.5 million, or 24.3%, compared to 2Q21 annualized.

•97% of our leases contain contractual annual rent escalations approximating 3%.

•Same property net operating income increases:

•7.5% and 10.2% (cash basis) for 2Q22 over 2Q21, representing the second- and third-highest increases in the past 10 years, respectively.

•7.7% and 8.6% (cash basis) for 1H22 over 1H21.

Strong valuations for partial interest sale and dispositions

During 2Q22, we completed a partial interest sale and dispositions aggregating $548.7 million, including:

•Sale of a 70% interest in 300 Third Street in our Cambridge/Inner Suburbs submarket for a sales price of $166.5 million, or $1,802 per RSF, representing capitalization rates of 4.6% and 4.3% (cash basis).

•Sale of 12 properties in our Route 128 and Route 495 suburban submarkets of Greater Boston for an aggregate sales price of $334.4 million, or $542 per RSF, representing a capitalization rate (cash basis) of 5.1%.

Strong and flexible balance sheet with significant liquidity as of June 30, 2022

•Investment-grade credit ratings ranked in the top 10% among all publicly traded U.S. REITs.

•Net debt and preferred stock to Adjusted EBITDA of 5.5x and fixed-charge coverage ratio of 5.1x for 2Q22 annualized.

•Total debt and preferred stock to gross assets of 28%.

•98.3% of our debt has a fixed rate.

•13.6 years weighted-average remaining term of debt.

•$5.5 billion of liquidity.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			1




Second Quarter Ended June 30, 2022 Financial and Operating Results (continued)
June 30, 2022

Continued high demand for Alexandria’s brand drives visibility for future growth aggregating $665 million of incremental annual rental revenue

Our highly leased value-creation pipeline of current and key near-term projects that are under construction or that will commence construction in the next six quarters is expected to generate greater than $665 million of incremental annual rental revenue, primarily commencing from 3Q22 through 2Q25.

•7.8 million RSF of our value-creation projects, which are 78% leased/negotiating, are either under construction or expected to commence construction in the next six quarters.

Continued dividend strategy to share growth in cash flows with stockholders

Common stock dividend declared for 2Q22 of $1.18 per common share, aggregating $4.60 per common share for the twelve months ended June 30, 2022, up 24 cents, or 6%, over the twelve months ended June 30, 2021. Our FFO payout ratio of 56% for the three months ended June 30, 2022 allows us to continue to share growth in cash flows from operating activities with our stockholders while also retaining a significant portion for reinvestment.

Seventh overall Nareit Investor CARE Award winner

We received the 2022 Nareit Investor CARE (Communications and Reporting Excellence) Silver Award in the Large Cap Equity REIT category for superior shareholder communications and reporting. This represents our fifth consecutive and seventh overall Nareit Investor CARE Award since 2015, demonstrating consistency in delivering best-in-class transparency, quality, and efficiency in communications and reporting to the investment community.

Key items included in operating results


Key items included in net income attributable to Alexandria’s common stockholders:


(In millions, except per share amounts)	Amount				Per Share – Diluted				Amount				Per Share – Diluted
	2Q22		2Q21		2Q22		2Q21		1H22		1H21		1H22		1H21
Unrealized (losses) gains on non-real estate investments	$	(68.1)	$	244.0	$	(0.42)	$	1.67	$	(331.6)	$	197.8	$	(2.07)	$	1.39
Significant realized gains on non-real estate investments	—		34.8		—		0.24		—		57.7		—		0.41
Gain on sales of real estate	214.2		—		1.33		—		214.2		2.8		1.34		0.02
Impairment of real estate	—		(4.9)		—		(0.03)		—		(10.1)		—		(0.07)
Loss on early extinguishment of debt	(3.3)		—		(0.02)		—		(3.3)		(67.3)		(0.02)		(0.47)


Total	$	142.8	$	273.9	$	0.89	$	1.88	$	(120.7)	$	180.9	$	(0.75)	$	1.28

External growth and investment in real estate

Delivery and commencement of value-creation projects

•During 2Q22, we placed into service development and redevelopment projects aggregating 375,394 RSF across multiple submarkets.

•80% of construction costs related to active development and redevelopment projects aggregating 5.9 million RSF are under a guaranteed maximum price (“GMP”) contract or other fixed contracts. Our budgets also include construction cost contingencies in GMP contracts plus additional landlord contingencies that generally range between 3% and 5%.

•Annual net operating income (cash basis) is expected to increase by $39 million upon the burn-off of initial free rent from recently delivered projects.

•During 2Q22, we commenced construction on six value-creation projects aggregating 917,599 RSF, including the following development projects:

•320,809 RSF, 36% leased, at 99 Coolidge Avenue in our Cambridge/Inner Suburbs submarket;

•248,018 RSF, 85% leased, at 500 North Beacon Street and 4 Kingsbury Avenue in our Cambridge/Inner Suburbs submarket;

•90,000 RSF, 29% leased, at 9808 Medical Center Drive in our Rockville submarket; and

•88,038 RSF, 100% leased, at our expansion at 6040 George Watts Hill Drive in our Research Triangle submarket.

•As of 2Q22, our highly leased value-creation pipeline of current and key near-term projects that are under construction or that will commence construction in the next six quarters aggregates 7.8 million RSF and is 78% leased/negotiating.


Value-creation pipeline of new Class A development and redevelopment projects as a percentage of gross assets						2Q22
Under construction projects 75% leased/negotiating						10%
Pre-leased/negotiating near-term projects expected to commence construction in the next six quarters 89% leased/negotiating						1%
Income-producing/potential cash flows/covered land play(1)						8%
Land						2%

(1)Includes projects that have existing buildings that are generating or can generate operating cash flows. Also includes development rights associated with existing operating campuses.

Alexandria is at the vanguard of innovation for a high-quality roster of over 1,000 tenants, with a focus on accommodating their current needs and providing them with a path for future growth

•Reduced the upper end of our range of 2022 guidance for acquisitions by $750 million to a range from $2.6 billion to $2.8 billion.

•During 2Q22, we completed acquisitions in our key life science cluster submarkets aggregating 1.1 million RSF of future development and redevelopment opportunities for an aggregate purchase price of $280.1 million.


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Second Quarter Ended June 30, 2022 Financial and Operating Results (continued)
June 30, 2022

Balance sheet management

Key metrics as of June 30, 2022

•$33.7 billion in total market capitalization.

•$23.4 billion in total equity capitalization, which ranks in the top 10% among all publicly traded U.S. REITs.

•No debt maturities prior to 2025.

•13.6 years weighted-average remaining term of debt.

2Q22

Goal

Quarter

Trailing

4Q22

Annualized

12 Months

Annualized

Net debt and preferred stock to Adjusted EBITDA

5.5x

5.9x

Less than or equal to 5.1x

Fixed-charge coverage ratio

5.1x

Greater than or equal to 5.1x

Key capital events

•During 2Q22, we entered into new forward equity sales agreements aggregating $403.4 million to sell 2.4 million shares under our ATM program at an average price of $169.38 per share (before underwriting discounts). As of June 30, 2022, the remaining aggregate amount available under our ATM program for future sales of common stock was $246.6 million.

•During 2Q22, we did not issue shares to settle our outstanding forward equity agreements. We expect to issue an aggregate of 9.0 million shares at an average price of $187.91 per share to settle all our outstanding forward equity sales agreements and receive net proceeds of approximately $1.7 billion in 2H22.

•In April 2022, we repaid two secured notes payable aggregating $195.0 million due in 2024 with an effective interest rate of 3.40%. As a result, we recognized a loss on early extinguishment of debt of $3.3 million.

Investments

•As of June 30, 2022:

•Our investments aggregated $1.7 billion.

•Unrealized gains presented in our consolidated balance sheets were $459.8 million, comprising gross unrealized gains and losses aggregating $565.5 million and $105.7 million, respectively.

•Investment loss of $39.5 million, presented in our consolidated statements of operations, consisted of $28.6 million of realized gains and $68.1 million of unrealized losses/changes in fair value.

Subsequent event

•On July 1, 2022, Stephen A. Richardson, our Co-Chief Executive Officer, tendered his resignation from all of his positions with the Company and its subsidiaries, effective July 31, 2022, and notified the Company of his intent to retire from full-time employment and his professional career for family and personal reasons.

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

•In June 2022, we released our 2021 ESG Report, which highlights our longstanding ESG leadership. The report details our efforts to advance our ESG impact, including by driving high-performance building design and operations to reduce carbon emissions, mitigating climate-related risk in our real estate portfolio, and investing in and providing essential infrastructure for sustainable agrifoodtech companies. It also showcases Alexandria’s comprehensive efforts to catalyze the health, wellness, safety, and productivity of our employees, tenants, local communities, and the world through the built environment and beyond, including through our visionary social responsibility endeavors. Notable initiatives presented in the report that highlight our innovative approach include:

•Furthering the development of our approach to physical and transitional climate-related risk by initiating a process to assess and understand potential physical risk and pathways to mitigate and adapt to climate change, as well as preparing for the transition to a low-carbon economy and continuing to develop science-based targets;

•Implementing innovative solutions to minimize fossil fuel use in our state-of-the-art laboratory development projects, such as at 325 Binney Street, which will harness geothermal energy to target a LEED Zero Energy certification and a 92% reduction in fossil fuel use as a key component of its design to be the most sustainable laboratory building in Cambridge; at 751 Gateway Boulevard, which is pursuing electrification and is tracking to be the first all-electric laboratory building in South San Francisco; and at the Alexandria Center® for Life Science – South Lake Union mega campus in Seattle, where the Company is incorporating an innovative wastewater heat recovery system; and

•Increasing our investment in renewable electricity to mitigate carbon emissions in our existing asset base, including through a large-scale solar power purchase agreement that will significantly increase the supply of renewable electricity to our Greater Boston market starting in 2024.

About Alexandria Real Estate Equities, Inc.

Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500® urban office REIT, is the first, longest-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science, agtech, and technology campuses in AAA innovation cluster locations, with a total market capitalization of $33.7 billion and an asset base in North America of 74.1 million SF as of June 30, 2022. The asset base in North America includes 41.1 million RSF of operating properties and 5.9 million RSF of Class A properties undergoing construction, 9.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 17.2 million SF of future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, agtech, and technology 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, agtech, 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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Acquisitions
June 30, 2022
(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	Operating With Future Development/ Redevelopment		Operating(2)		Operating		Total(3)

Completed in 1Q22			29	91	%	4,617,991	2,668,494		451,760		—		7,306,305		$	1,840,717

Completed in 2Q22:
One Hampshire Street(4)	Cambridge/Inner Suburbs/ Greater Boston	6/23/22	1	100	%	—	88,591		—		—		88,591			140,000
Other	Various	Various	2	76		869,000	109,557		—		—		978,557			140,146
			3	87	%	869,000	198,148	(5)	—	(5)	—	(5)	1,067,148			280,146

Completed in July 2022																9,561
																2,130,424
Pending(6)	Various	3Q22														275,000
Other																244,576
2022 acquisitions (midpoint)															$	2,650,000


2022 guidance range(7)													$2,550,000 – $2,750,000

(1)We expect to provide total estimated costs and related yields for development and redevelopment projects in the future, subsequent to the commencement of construction.

(2)Represents the operating component of our value-creation acquisitions that is not expected to undergo future development or redevelopment.

(3)Represents total square footage upon completion of development or redevelopment of a new Class A property. Square footage presented includes RSF of buildings currently in operation with future development or redevelopment opportunities. We intend to demolish and develop or to redevelop the existing properties upon expiration of the existing in-place leases. Refer to “Definitions and reconciliations” in our Supplemental Information for additional details on value-creation square feet currently included in rental properties.

(4)Represents the acquisition of a condominium in two floors of a seven-story building.

(5)We expect the acquisitions completed during the three months ended June 30, 2022 to generate initial annual net operating income of approximately $9 million for the twelve months following acquisition. These acquisitions included three operating properties with a weighted-average acquisition date of June 16, 2022 (weighted by initial annual net operating income).

(6)Represents acquisitions of land parcels to expand our mega campuses in our Cambridge and University Town Center submarkets.

(7)We reduced the upper end of our range of 2022 guidance for acquisitions by $750 million. Refer to “Guidance” on page 6 of this Earnings Press Release for additional information.


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Dispositions and Sales of Partial Interest
June 30, 2022
(Dollars in thousands)


									Capitalization Rate (Cash Basis)							Sales Price per RSF		Gain or Consideration in Excess of Book Value
Property	Submarket/Market	Date of Sale	Interest Sold			RSF	Capitalization Rate				Sales Price

Completed 1H22:
100 Binney Street	Cambridge/Inner Suburbs/Greater Boston	3/30/22	70	%		432,931	3.6	%	3.5	%	$	713,228			(1)	$	2,353	$	413,615	(2)
300 Third Street	Cambridge/Inner Suburbs/Greater Boston	6/27/22	70	%		131,963	4.6	%	4.3	%	166,485				(1)	$	1,802	113,020		(2)
Alexandria Park at 128, 285 Bear Hill Road, 111 and 130 Forbes Boulevard, and 20 Walkup Drive	Route 128 and Route 495/Greater Boston	6/8/22	100	%		617,043	5.1	%	5.1	%	334,397					$	542	202,325
Other							N/A		N/A		47,800					N/A		11,895
											1,261,910							$	740,855
Completed in July 2022:
1450 Owens Street	Mission Bay/San Francisco Bay Area	7/1/22	20	%	(3)	191,000	N/A		N/A		25,039				(1)	N/A		$	10,083	(2)
											1,286,949

Pending	San Diego	3Q22	TBD			TBD					140,000		–	160,000				TBD
Other		TBD	TBD			TBD					588,051							TBD
2022 dispositions (midpoint)											$	2,025,000

2022 guidance range									$1,450,000 – $2,600,000

(1)Represents the contractual sales price for the percentage interest of the property sold by us.

(2)We retained control over the newly formed real estate joint venture and therefore continued to consolidate this property. We accounted for the difference between the consideration received and the book value of the interest sold as an equity transaction, with no gain or loss recognized in earnings.

(3)Relates to the sale of a land parcel. Upon completion of the transaction, the noncontrolling interest share for our joint venture partner is 20% and is anticipated to increase to 75% as our partner contributes capital for construction over time.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			5



Guidance
June 30, 2022
(Dollars in millions)

The following updated guidance is based on our current view of existing market conditions and assumptions for the year ending December 31, 2022. 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 the reduction of an aggregate $635 million to our uses of capital, comprising a $350 million reduction in acquisitions and a $285 million reduction in construction spending. This reduction was offset by construction spending from January through June 2022, which increased by $335 million to slightly above the high end of our previous guidance range, as a result of construction spending associated with the leasing of our development and redevelopment projects under construction and our near-term pipeline projects. In addition, the midpoint of our guidance for funds from operations per share, as adjusted increased by three cents driven by strong same property performance and general and administrative savings in 2H22 resulting from the retirement of Stephen A. Richardson, our Co-Chief Executive Officer.

2022 Guidance

Reduction in uses of capital

Reduction

Summary of key changes in guidance

As of 7/25/22

As of 4/25/22

Construction

$285

EPS, FFO per share, and FFO per share, as adjusted

Refer to page 7

Acquisitions

$350

Same property net operating income increase

6.0% to 8.0%

5.9% to 7.9%

Same property net operating income increase (cash basis)

6.8% to 8.8%

6.5% to 8.5%

General and administrative expenses

$172 to $180

$168 to $176


	As of 7/25/22
Key Sources and Uses of Capital	Range				Midpoint		Certain Completed Items			As of 4/25/22 Midpoint		Key Changes to Midpoint
Sources of capital:
Net cash provided by operating activities after dividends	$	275	$	325	$	300				$	300
Net incremental debt	1,361		561			961	See below			950
Dispositions and sales of partial interest (refer to page 5)	1,450		2,600			2,025	$	1,287		1,950		$	75
Common equity	2,364		2,364			2,364	$	2,364	(1)	2,750		$	(386)
Total sources of capital	$	5,450	$	5,850	$	5,650				$	5,950
Uses of capital:
Construction	$	2,900	$	3,100	$	3,000				$	2,950	$	50
Acquisitions (refer to page 4)	2,550		2,750			2,650	$	2,130		3,000		$	(350)
Total uses of capital	$	5,450	$	5,850	$	5,650				$	5,950
Incremental debt (included above):
Issuance of unsecured senior notes payable	$	1,800	$	1,800	$	1,800	$	1,800		$	1,800
Repayments of secured notes payable	(195)		(195)			(195)	$	(195)		(195)
Unsecured senior line of credit, commercial paper, and other	(44)		(744)			(394)				(655)
Incremental cash expected to be held at December 31, 2022(2)	(200)		(300)			(250)				—		$	(250)
Net incremental debt	$	1,361	$	561	$	961				$	950

(1)Refer to “Key capital events” on page 3 of this Earnings Press Release for additional details. During the six months ended June 30, 2022, we entered into new forward equity sales agreements aggregating $2.4 billion to sell 12.3 million shares of our common stock. During 1Q22, we settled a portion of these forward equity sales agreements by issuing 3.2 million shares and received net proceeds of $648.2 million. We expect to issue 9.0 million shares to settle our remaining outstanding forward equity sales agreements and receive net proceeds of approximately $1.7 billion in 2022.

(2)We expect this forecasted cash at December 31, 2022 to result in a reduction of our 2023 debt capital needs.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			6



Guidance (continued)
June 30, 2022
(Dollars in millions, except per share amounts)


Projected 2022 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted
	As of 7/25/22		As of 4/25/22
Earnings per share(1)	$2.14 to $2.20		$1.08 to $1.18
Depreciation and amortization of real estate assets		5.50		5.65
Gain on sales of real estate		(1.34)		—

Allocation to unvested restricted stock awards		(0.02)		(0.02)
Funds from operations per share(2)	$6.28 to $6.34		$6.71 to $6.81
Unrealized losses on non-real estate investments		2.07		1.67



Loss on early extinguishment of debt(3)		0.02		0.02
Acceleration of stock compensation due to executive officer resignation(4)		0.04		—
Allocation to unvested restricted stock awards		(0.02)		(0.02)
Other		(0.01)		(0.05)
Funds from operations per share, as adjusted(1)	$8.38 to $8.44		$8.33 to $8.43
Midpoint	$8.41		$8.38


	As of 7/25/22				As of 4/25/22
Key Assumptions	Low		High		Low		High
Occupancy percentage in North America as of December 31, 2022	95.2%		95.8%		95.2%		95.8%
Lease renewals and re-leasing of space:
Rental rate increases	30.0%		35.0%		30.0%		35.0%
Rental rate increases (cash basis)	18.0%		23.0%		18.0%		23.0%
Same property performance:
Net operating income increase	6.0%		8.0%		5.9%		7.9%
Net operating income increase (cash basis)	6.8%		8.8%		6.5%		8.5%
Straight-line rent revenue(5)	$	144	$	154	$	154	$	164
General and administrative expenses(4)	$	172	$	180	$	168	$	176
Capitalization of interest	$	269	$	279	$	269	$	279
Interest expense	$	90	$	100	$	90	$	100

Key Credit Metrics

As of 7/25/22

As of 4/25/22

Net debt and preferred stock to Adjusted EBITDA – 4Q22 annualized

Less than or equal to 5.1x

Fixed-charge coverage ratio – 4Q22 annualized

Greater than or equal to 5.1x

(1)Excludes unrealized gains or losses after June 30, 2022 that are required to be recognized in earnings and are excluded from funds from operations per share, as adjusted.

(2)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.

(3)Refer to “Key capital events” on page 3 of this Earnings Press Release for additional details.

(4)Relates to the resignation of an executive officer in July 2022. General & administrative expenses increased by $4 million, including $7 million related to the acceleration of stock compensation due to the resignation of Stephen A. Richardson, our Co-Chief Executive Officer, partially offset by compensation savings in 2H22. Refer to “Subsequent event” on page 3 of this Earnings Press release for additional information.

(5)The $10 million reduction in our guidance range for straight-line rent revenue includes reductions attributable to the following items:

•Changes to our capital plan for 2022 as highlighted in our updated guidance for key sources and uses of capital on the previous page, including the following:

•Lower acquisitions with operating activities in 2022 as well as the $350 million reduction in the midpoint of our guidance range for acquisitions; and

•Higher dispositions compared to sales of partial interest.

•Acceleration of $2 million contractual rental payments due under one long-term lease in our Cambridge/Inner Suburbs submarket.

•Early terminations of below-market leases:

•Includes two spaces aggregating 141,649 RSF in two markets, of which 51% has been re-leased at aggregate rental rate increases of 114% and 140% (cash basis). We expect the re-leased spaces to take occupancy by 3Q22.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			7




Earnings Call Information and About the Company
June 30, 2022

We will host a conference call on Tuesday, July 26, 2022, at 3:00 p.m. Eastern Time (“ET”)/noon Pacific Time (“PT”), which is open to the general public, to discuss our financial and operating results for the second quarter ended June 30, 2022. To participate in this conference call, dial (833) 366-1125 or (412) 902-6738 shortly before 3:00 p.m. ET/noon PT and ask the operator to join the call for Alexandria Real Estate Equities, Inc. The audio webcast can be accessed at www.are.com in the “For Investors” section. A replay of the call will be available for a limited time from 5:00 p.m. ET/2:00 p.m. PT on Tuesday, July 26, 2022. The replay number is (877) 344-7529 or (412) 317-0088, and the access code is 7939670.

Additionally, a copy of this Earnings Press Release and Supplemental Information for the second quarter ended June 30, 2022 is available in the “For Investors” section of our website at www.are.com or by following this link: https://www.are.com/fs/2022q2.pdf.

For any questions, please contact Joel S. Marcus, executive chairman and founder; Peter M. Moglia, co-chief executive officer and co-chief investment officer; Stephen A. Richardson, co-chief executive officer; Dean A. Shigenaga, president and chief financial officer; Paula Schwartz, managing director of Rx Communications Group, at (917) 633-7790; or Sara M. Kabakoff, vice president – communications, at (626) 578-0777.

About the Company

Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500® urban office real estate investment trust (“REIT”), is the first, longest-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science, agtech, and technology campuses in AAA innovation cluster locations, with a total market capitalization of $33.7 billion and an asset base in North America of 74.1 million square feet (“SF”) as of June 30, 2022. The asset base in North America includes 41.1 million RSF of operating properties and 5.9 million RSF of Class A properties undergoing construction, 9.9 million RSF of near-term and intermediate-term development and redevelopment projects, and 17.2 million SF of future development projects. Founded in 1994, Alexandria pioneered this niche and has since established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, agtech, and technology 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, agtech, 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 2022 earnings per share attributable to Alexandria’s common stockholders – diluted, 2022 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.

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. © 2022			8



Consolidated Statements of Operations
June 30, 2022
(Dollars in thousands, except per share amounts)


	Three Months Ended										Six Months Ended
	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21		6/30/22		6/30/21
Revenues:
Income from rentals	$	640,959	$	612,554	$	574,656	$	546,527	$	508,371	$	1,253,513	$	987,066
Other income	2,805		2,511		2,267		1,232		1,248		5,316		2,402
Total revenues	643,764		615,065		576,923		547,759		509,619		1,258,829		989,468

Expenses:
Rental operations	196,284		181,328		175,717		165,995		143,955		377,612		281,843
General and administrative	43,397		40,931		41,654		37,931		37,880		84,328		71,876
Interest	24,257		29,440		34,862		35,678		35,158		53,697		71,625
Depreciation and amortization	242,078		240,659		239,254		210,842		190,052		482,737		370,965
Impairment of real estate	—		—		—		42,620		4,926		—		10,055
Loss on early extinguishment of debt	3,317		—		—		—		—		3,317		67,253
Total expenses	509,333		492,358		491,487		493,066		411,971		1,001,691		873,617

Equity in earnings of unconsolidated real estate joint ventures	213		220		3,018		3,091		2,609		433		6,146
Investment (loss) income	(39,481)		(240,319)		(112,884)		67,084		304,263		(279,800)		305,277
Gain (loss) on sales of real estate	214,219		—		124,226		(435)		—		214,219		2,779
Net income (loss)	309,382		(117,392)		99,796		124,433		404,520		191,990		430,053
Net income attributable to noncontrolling interests	(37,168)		(32,177)		(24,901)		(21,286)		(19,436)		(69,345)		(36,848)
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s stockholders	272,214		(149,569)		74,895		103,147		385,084		122,645		393,205


Net income attributable to unvested restricted stock awards	(2,934)		(2,081)		(2,098)		(1,883)		(4,521)		(4,134)		(4,663)
Net income (loss) attributable to Alexandria Real Estate Equities, Inc.’s common stockholders	$	269,280	$	(151,650)	$	72,797	$	101,264	$	380,563	$	118,511	$	388,542

Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s common stockholders:
Basic	$	1.67	$	(0.96)	$	0.47	$	0.67	$	2.61	$	0.74	$	2.74
Diluted	$	1.67	$	(0.96)	$	0.47	$	0.67	$	2.61	$	0.74	$	2.74

Weighted-average shares of common stock outstanding:
Basic	161,412		158,198		153,464		150,854		145,825		159,814		141,596
Diluted	161,412		158,198		154,307		151,561		146,058		159,814		141,896

Dividends declared per share of common stock	$	1.18	$	1.15	$	1.15	$	1.12	$	1.12	$	2.33	$	2.21


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			9



Consolidated Balance Sheets
June 30, 2022
(In thousands)


	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21
Assets
Investments in real estate	$	27,952,931	$	27,100,009	$	24,980,669	$	23,071,514	$	21,692,385
Investments in unconsolidated real estate joint ventures	37,587		38,456		38,483		321,737		323,622
Cash and cash equivalents	420,258		775,060		361,348		325,872		323,876
Restricted cash	97,404		95,106		53,879		42,182		33,697
Tenant receivables	7,069		7,570		7,379		7,749		6,710
Deferred rent	905,699		881,743		839,335		816,219		781,600
Deferred leasing costs	498,434		484,184		402,898		329,952		321,005
Investments	1,657,461		1,661,101		1,876,564		2,046,878		1,999,283
Other assets	1,667,210		1,801,027		1,658,818		1,596,615		1,536,672
Total assets	$	33,244,053	$	32,844,256	$	30,219,373	$	28,558,718	$	27,018,850

Liabilities, Noncontrolling Interests, and Equity
Secured notes payable	$	24,986	$	208,910	$	205,198	$	198,758	$	227,984
Unsecured senior notes payable	10,096,462		10,094,337		8,316,678		8,314,851		8,313,025
Unsecured senior line of credit and commercial paper	149,958		—		269,990		749,978		299,990
Accounts payable, accrued expenses, and other liabilities	2,317,940		2,172,692		2,210,410		2,149,450		1,825,387
Dividends payable	192,571		187,701		183,847		173,560		170,647
Total liabilities	12,781,917		12,663,640		11,186,123		11,586,597		10,837,033

Commitments and contingencies

Redeemable noncontrolling interests	9,612		9,612		9,612		11,681		11,567

Alexandria Real Estate Equities, Inc.’s stockholders’ equity:
Common stock	1,615		1,614		1,580		1,532		1,507
Additional paid-in capital	17,149,571		16,934,094		16,195,256		14,727,735		14,194,023
Accumulated other comprehensive loss	(11,851)		(5,727)		(7,294)		(6,029)		(4,508)
Alexandria Real Estate Equities, Inc.’s stockholders’ equity	17,139,335		16,929,981		16,189,542		14,723,238		14,191,022
Noncontrolling interests	3,313,189		3,241,023		2,834,096		2,237,202		1,979,228
Total equity	20,452,524		20,171,004		19,023,638		16,960,440		16,170,250
Total liabilities, noncontrolling interests, and equity	$	33,244,053	$	32,844,256	$	30,219,373	$	28,558,718	$	27,018,850


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			10



Funds From Operations and Funds From Operations per Share
June 30, 2022
(In thousands)

The following table presents a reconciliation of net income (loss) attributable to Alexandria’s common stockholders, the most directly comparable financial measure presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including our share of amounts from consolidated and unconsolidated real estate joint ventures, to funds from operations attributable to Alexandria’s common stockholders – diluted, and funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted, for the periods below:


	Three Months Ended										Six Months Ended
	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21		6/30/22		6/30/21


Net income (loss) attributable to Alexandria’s common stockholders	$	269,280	$	(151,650)	$	72,797	$	101,264	$	380,563	$	118,511	$	388,542
Depreciation and amortization of real estate assets	238,565		237,160		234,979		205,436		186,498		475,725		364,218
Noncontrolling share of depreciation and amortization from consolidated real estate JVs	(26,418)		(23,681)		(21,265)		(17,871)		(16,301)		(50,099)		(31,744)
Our share of depreciation and amortization from unconsolidated real estate JVs	934		955		3,058		3,465		4,135		1,889		7,211
(Gain) loss on sales of real estate	(214,219)		—		(124,226)		435		—		(214,219)		(2,779)
Impairment of real estate – rental properties	—		—		—		18,602		1,754		—		6,883
Allocation to unvested restricted stock awards	—		—		—		(1,472)		(2,191)		—		(4,427)
Funds from operations attributable to Alexandria’s common stockholders – diluted(1)	268,142		62,784		165,343		309,859		554,458		331,807		727,904
Unrealized losses (gains) on non-real estate investments	68,128		263,433		139,716		14,432		(244,031)		331,561		(197,780)
Significant realized gains on non-real estate investments	—		—		—		(52,427)		(34,773)		—		(57,692)
Impairment of real estate	—		—		—		24,018		3,172		—		3,172
Loss on early extinguishment of debt	3,317		—		—		—		—		3,317		67,253
Allocation to unvested restricted stock awards	(778)		(1,604)		(1,432)		149		3,428		(3,264)		2,382
Funds from operations attributable to Alexandria’s common stockholders – diluted, as adjusted	$	338,809	$	324,613	$	303,627	$	296,031	$	282,254	$	663,421	$	545,239

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


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			11



Funds From Operations and Funds From Operations per Share (continued)
June 30, 2022
(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										Six Months Ended
	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21		6/30/22		6/30/21
Net income (loss) per share attributable to Alexandria’s common stockholders – diluted	$	1.67	$	(0.96)	$	0.47	$	0.67	$	2.61	$	0.74	$	2.74
Depreciation and amortization of real estate assets	1.32		1.36		1.40		1.26		1.19		2.68		2.39
Gain on sales of real estate	(1.33)		—		(0.80)		—		—		(1.34)		(0.02)
Impairment of real estate – rental properties	—		—		—		0.12		0.01		—		0.05
Allocation to unvested restricted stock awards	—		—		—		(0.01)		(0.01)		—		(0.03)
Funds from operations per share attributable to Alexandria’s common stockholders – diluted	1.66		0.40		1.07		2.04		3.80		2.08		5.13
Unrealized losses (gains) on non-real estate investments	0.42		1.67		0.91		0.10		(1.67)		2.07		(1.39)
Significant realized gains on non-real estate investments	—		—		—		(0.35)		(0.24)		—		(0.41)
Impairment of real estate	—		—		—		0.16		0.02		—		0.02
Loss on early extinguishment of debt	0.02		—		—		—		—		0.02		0.47
Allocation to unvested restricted stock awards	—		(0.02)		(0.01)		—		0.02		(0.02)		0.02
Funds from operations per share attributable to Alexandria’s common stockholders – diluted, as adjusted	$	2.10	$	2.05	$	1.97	$	1.95	$	1.93	$	4.15	$	3.84

Weighted-average shares of common stock outstanding for calculation of:
Earnings per share – diluted	161,412		158,198		154,307		151,561		146,058		159,814		141,896
Funds from operations, diluted, per share	161,412		158,209		154,307		151,561		146,058		159,814		141,896
Funds from operations, diluted, as adjusted, per share	161,412		158,209		154,307		151,561		146,058		159,814		141,896


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			12

SUPPLEMENTAL

INFORMATION




Company Profile
June 30, 2022

Tenant base

Alexandria is known for our high-quality and diverse tenant base, with 50% 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 campuses in key urban life science, agtech, and technology cluster locations that inspire innovation. From our development of high-quality, sustainable real estate to 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 expertise, experience, reputation, and key relationships in the real estate, life science, agtech, and technology sectors provide Alexandria significant competitive advantages in attracting new business opportunities.

Alexandria’s executive and senior management team consists of 62 individuals, averaging 24 years of real estate experience, including 12 years with Alexandria. Our executive management team alone averages 18 years with Alexandria.


EXECUTIVE MANAGEMENT TEAM

Joel S. Marcus						Peter M. Moglia
Executive Chairman & Founder						Co-Chief Executive Officer & Co-Chief Investment Officer

Dean A. Shigenaga						Stephen A. Richardson
President & Chief Financial Officer						Co-Chief Executive Officer

Daniel J. Ryan						Hunter L. Kass
Co-Chief Investment Officer & Regional Market Director – San Diego						Executive Vice President – Regional Market Director – Greater Boston

John H. Cunningham						Lawrence J. Diamond
Executive Vice President – Regional Market Director – New York City						Co-Chief Operating Officer & Regional Market Director – Maryland

Vincent R. Ciruzzi						Joseph Hakman
Chief Development Officer						Co-Chief Operating Officer & Chief Strategic Transactions Officer

Jackie B. Clem						Marc E. Binda
General Counsel & Secretary						Executive Vice President – Finance & Treasurer

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

Terezia C. Nemeth						Onn C. Lee
Executive Vice President – Regional Market Director – San Francisco Bay Area						Executive Vice President – Accounting

Kristina A. Fukuzaki-Carlson						Madeleine T. Alsbrook
Executive Vice President – Business Operations						Executive Vice President – Talent Management


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			14




Investor Information
June 30, 2022

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.

Bank of America Merrill Lynch

Citigroup Global Markets Inc.

JMP Securities

RBC Capital Markets

Jamie Feldman

Michael Bilerman / Michael Griffin

Aaron Hecht

Michael Carroll

(646) 855-5808

(212) 816-1383 / (212) 816-5871

(415) 835-3963

(440) 715-2649

Berenberg Capital Markets

Evercore ISI

J.P. Morgan Securities LLC

Robert W. Baird & Co. Incorporated

Connor Siversky

Sheila McGrath / Wendy Ma

Anthony Paolone / Ray Zhong

David Rodgers / Nicholas Thillman

(646) 949-9037

(212) 497-0882 / (212) 497-0870

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

(216) 737-7341 / (414) 298-5053

BTIG, LLC

Green Street

Mizuho Securities USA LLC

SMBC Nikko Securities America, Inc.

Tom Catherwood / John Nickodemus

Daniel Ismail / Dylan Burzinski

Vikram Malhotra / Georgi Dinkov

Richard Anderson / Jay Kornreich

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

(949) 640-8780 / (949) 640-8780

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

(646) 521-2351 / (646) 424-3202

CFRA

Kenneth Leon

(646) 517-2552

Fixed Income Coverage

Rating Agencies

Barclays Capital Inc.

Stifel Financial Corp.

Moody’s Investors Service

S&P Global Ratings

Srinjoy Banerjee

Thierry Perrein

(212) 553-0376

Fernanda Hernandez / Michael Souers

(212) 526-3521

(646) 376-5303

(212) 438-1347 / (212) 438-2508

J.P. Morgan Securities LLC

Mark Streeter / Ian Snyder

(212) 834-5086 / (212) 834-3798


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			15



Financial and Asset Base Highlights
June 30, 2022
(Dollars in thousands, except per share amounts)


	Three Months Ended (unless stated otherwise)
	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21
Selected financial data from consolidated financial statements and related information
Rental revenues	$	485,067	$	469,537	$	435,637	$	415,918	$	396,804
Tenant recoveries	$	155,892	$	143,017	$	139,019	$	130,609	$	111,567
General and administrative expenses	$	43,397	$	40,931	$	41,654	$	37,931	$	37,880
General and administrative expenses as a percentage of net operating income – trailing 12 months	9.8%		10.0%		10.2%		10.1%		9.8%
Operating margin	70%		71%		70%		70%		72%
Adjusted EBITDA margin	70%		71%		71%		71%		73%
Adjusted EBITDA – quarter annualized	$	1,797,488	$	1,734,956	$	1,631,244	$	1,557,652	$	1,483,576
Adjusted EBITDA – trailing 12 months	$	1,680,335	$	1,601,857	$	1,517,838	$	1,442,929	$	1,371,586

Net debt at end of period	$	9,832,722	$	9,514,256	$	8,442,115	$	8,960,645	$	8,550,339
Net debt and preferred stock to Adjusted EBITDA – quarter annualized	5.5x		5.5x		5.2x		5.8x		5.8x
Net debt and preferred stock to Adjusted EBITDA – trailing 12 months	5.9x		5.9x		5.6x		6.2x		6.2x

Total debt and preferred stock at end of period	$	10,271,406	$	10,303,247	$	8,791,866	$	9,263,587	$	8,840,999
Gross assets at end of period	$	37,304,589	$	36,795,922	$	33,990,614	$	32,173,158	$	30,480,630
Total debt and preferred stock to gross assets at end of period	28%		28%		26%		29%		29%

Fixed-charge coverage ratio – quarter annualized	5.1x		5.1x		5.3x		5.1x		4.9x
Fixed-charge coverage ratio – trailing 12 months	5.1x		5.1x		5.0x		4.8x		4.6x
Unencumbered net operating income as a percentage of total net operating income	100%		97%		97%		97%		97%

Closing stock price at end of period	$	145.03	$	201.25	$	222.96	$	191.07	$	181.94
Common shares outstanding (in thousands) at end of period	161,456		161,408		158,044		153,284		150,708
Total equity capitalization at end of period	$	23,415,970	$	32,483,420	$	35,237,463	$	29,287,880	$	27,419,791
Total market capitalization at end of period	$	33,687,376	$	42,786,667	$	44,029,329	$	38,551,467	$	36,260,790

Dividend per share – quarter/annualized	$1.18/$4.72		$1.15/$4.60		$1.15/$4.60		$1.12/$4.48		$1.12/$4.48
Dividend payout ratio for the quarter	56%		57%		60%		58%		60%
Dividend yield – annualized	3.3%		2.3%		2.1%		2.3%		2.5%

Amounts related to operating leases:
Operating lease liabilities at end of period	$	412,535	$	405,818	$	434,745	$	371,538	$	371,905
Rent expense	$	7,924	$	7,718	$	7,124	$	6,228	$	6,213

Capitalized interest	$	68,202	$	57,763	$	44,078	$	43,185	$	43,492
Weighted-average interest rate for capitalization of interest during the period	3.56%		3.26%		3.22%		3.30%		3.47%


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			16



Financial and Asset Base Highlights (continued)
June 30, 2022
(Dollars in thousands, except annual rental revenue per occupied RSF amounts)


	Three Months Ended (unless stated otherwise)
	6/30/22			3/31/22		12/31/21		9/30/21		6/30/21
Amounts included in funds from operations and non-revenue-enhancing capital expenditures
Straight-line rent revenue	$	27,362		$	42,025	$	25,942	$	33,918	$	27,903
Amortization of acquired below-market leases	$	16,760		$	13,915	$	15,737	$	13,664	$	13,267
Straight-line rent expense on ground leases	$	354		$	416	$	301	$	58	$	248
Stock compensation expense	$	14,340		$	14,028	$	14,253	$	9,728	$	12,242
Amortization of loan fees	$	3,236		$	3,103	$	2,911	$	2,854	$	2,859
Amortization of debt (discounts) premiums	$	(267)		$	424	$	502	$	498	$	465
Non-revenue-enhancing capital expenditures:
Building improvements	$	4,199		$	4,110	$	4,027	$	3,901	$	3,669
Tenant improvements and leasing commissions	$	24,562		$	27,791	$	109,516	$	16,409	$	47,439

Operating statistics and related information (at end of period)
Number of properties – North America	436			446		414		407		381
RSF – North America (including development and redevelopment projects under construction)	46,934,653			47,364,067		43,670,737		43,044,195		40,076,883
Total square feet – North America	74,087,636			74,185,859		66,970,705		63,858,780		58,108,390
Annual rental revenue per occupied RSF – North America	$	50.80		$	49.42	$	48.65	$	47.73	$	48.65
Occupancy of operating properties – North America	94.6%			94.7%		94.0%		94.4%		94.3%
Occupancy of operating properties – North America (excluding vacancy at recently acquired properties)	98.4%		(1)	98.6%		98.7%		98.5%		98.1%
Occupancy of operating and redevelopment properties – North America	89.0%			88.9%		88.5%		89.6%		90.1%
Weighted-average remaining lease term (in years)	7.1			7.3		7.5		7.4		7.5

Total leasing activity – RSF	2,279,758			2,463,438		4,094,174		1,810,630		1,933,838
Lease renewals and re-leasing of space – change in average new rental rates over expiring rates:
Rental rate increases	45.4%			32.2%		35.9%		35.3%		42.4%
Rental rate increases (cash basis)	33.9%			16.5%		22.9%		19.3%		25.4%
RSF (included in total leasing activity above)	1,087,082			864,077		1,947,727		671,775		1,472,713

Same property – percentage change over comparable quarter from prior year:
Net operating income increase	7.5%			7.6%		5.0%		3.0%		3.7%
Net operating income increase (cash basis)	10.2%			7.3%		7.5%		7.1%		7.8%

(1)Refer to “Occupancy” in this Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			17




High-Quality, Diverse, and Innovative Tenants
June 30, 2022

Long-Duration Cash Flows From High-Quality, Diverse, and

Innovative Tenants

Investment-Grade or
Publicly Traded Large Cap Tenants

Industry Mix of 1,000+ Tenants

50%

of ARE’s Total Annual Rental Revenue(1)

Long-Duration Lease Terms

7.1 Years

Weighted-Average Remaining Term(2)

Percentage of ARE’s Annual Rental Revenue(1)

(1)Represents annual rental revenue in effect as of June 30, 2022.

(2)Based on aggregate annual rental revenue in effect as of June 30, 2022. Refer to “Annual rental revenue” in the “Definitions and reconciliations” of this Supplemental Information for additional details about our methodology on annual rental revenue from unconsolidated real estate joint ventures.

(3)Represents annual rental revenue currently generated from space that is targeted for a future change in use. The weighted-average remaining term of these leases is 4.2 years.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			18




Class A Properties in AAA Locations
June 30, 2022

High-Quality Cash Flows From High-Quality Tenants and

Class A Properties in AAA Locations

Industry-Leading
Tenant Roster

AAA Locations

86%

of ARE’s Top 20 Tenants

Annual Rental Revenue(1)

Is From Investment-Grade

or Publicly Traded Large Cap Tenants

Percentage of ARE’s Annual Rental Revenue(2)

(1)As of June 30, 2022. Represents the percentage of our annual rental revenue generated by our top 20 tenants that are also investment-grade or publicly traded large cap tenants.

(2)Represents annual rental revenue in effect as of June 30, 2022.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			19




Occupancy
June 30, 2022

Solid Historical Occupancy(1)

Occupancy Across Key Locations

96%

Over 10 Years

(1)Represents average occupancy of operating properties in North America as of each December 31 for the last 10 years and as of June 30, 2022.

(2)Excludes 1.6 million RSF, or 3.8%, of vacancy at recently acquired properties (noted below) representing lease-up opportunities that are expected to generate incremental annual rental revenue. Approximately 34% of the vacant 1.6 million RSF is currently leased/negotiating. Additionally, approximately 23% of the vacant 1.6 million RSF represents spaces, spread across multiple recently acquired properties, that are expected to be converted to laboratory/office space in the future. We expect to deliver 19% of the 1.6 million RSF over the next two quarters. Excluding recently acquired vacancies, occupancy of operating properties in North America was 98.4% as of June 30, 2022. The following table provides vacancy detail for our recent acquisitions:



		As of June 30, 2022					Percentage of Vacancy Leased/Negotiating RSF
		Vacant RSF	Operating Properties Occupancy Impact
Property	Market/Submarket		Region		North America
Intersection Campus	Texas/Austin	159,638	9.6	%	0.4	%	100	%
601 and 611 Gateway Boulevard	San Francisco Bay Area/South San Francisco	153,596	1.8	%	0.4		46
Alexandria Center® for Life Science – Durham	Research Triangle/Research Triangle	128,387	3.6	%	0.3		53
275 Grove Street	Greater Boston/Route 128	124,240	1.2	%	0.3		—		(3)
Alexandria Center® for Life Science – Fenway	Greater Boston/Fenway	89,458	0.8	%	0.2		20
Other acquisitions	Various	909,833	N/A		2.2		24
		1,565,152			3.8	%	34	%

(3)We are evaluating options to develop or redevelop this space for laboratory space in the future.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			20




Key Operating Metrics
June 30, 2022

Historical Same Property
Net Operating Income Growth

Favorable Lease Structure(1)

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

Increasing cash flows

Percentage of leases containing

annual rent escalations

97%

Stable cash flows

Percentage of triple

net leases

91%

Lower capex burden

Percentage of leases providing for the

recapture of capital expenditures

94%

Historical Rental Rate Growth:
Renewed/Re-Leased Space

Margins(2)

Operating

Adjusted EBITDA

70%

(1)Percentages calculated based on annual rental revenue as of June 30, 2022.

(2)Represents percentages for the three months ended June 30, 2022.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			21



Same Property Performance
June 30, 2022
(Dollars in thousands)


	June 30, 2022				June 30, 2022
Same Property Financial Data	Three Months Ended	Six Months Ended		Same Property Statistical Data	Three Months Ended	Six Months Ended
Percentage change over comparable period from prior year:					Number of same properties	287	266
Net operating income increase	7.5%		7.7%		Rentable square feet	28,897,189	27,008,468
Net operating income increase (cash basis)	10.2%		8.6%		Occupancy – current-period average	95.9%	95.8%
Operating margin	71%		71%		Occupancy – same-period prior-year average	94.5%	94.6%


	Three Months Ended June 30,								Six Months Ended June 30,
	2022		2021		$ Change		% Change		2022		2021		$ Change		% Change
Income from rentals:

Same properties	$	378,130	$	350,577	$	27,553	7.9	%	$	708,840	$	656,182	$	52,658	8.0	%
Non-same properties	106,937		46,227		60,710		131.3		245,764		110,855		134,909		121.7
Rental revenues	485,067		396,804		88,263		22.2		954,604		767,037		187,567		24.5


Same properties	124,693		101,088		23,605		23.4		235,108		196,835		38,273		19.4
Non-same properties	31,199		10,479		20,720		197.7		63,801		23,194		40,607		175.1
Tenant recoveries	155,892		111,567		44,325		39.7		298,909		220,029		78,880		35.8

Income from rentals	640,959		508,371		132,588		26.1		1,253,513		987,066		266,447		27.0

Same properties	193		134		59		44.0		324		209		115		55.0
Non-same properties	2,612		1,114		1,498		134.5		4,992		2,193		2,799		127.6
Other income	2,805		1,248		1,557		124.8		5,316		2,402		2,914		121.3

Same properties	503,016		451,799		51,217		11.3		944,272		853,226		91,046		10.7
Non-same properties	140,748		57,820		82,928		143.4		314,557		136,242		178,315		130.9
Total revenues	643,764		509,619		134,145		26.3		1,258,829		989,468		269,361		27.2

Same properties	147,045		120,686		26,359		21.8		271,903		228,963		42,940		18.8
Non-same properties	49,239		23,269		25,970		111.6		105,709		52,880		52,829		99.9
Rental operations	196,284		143,955		52,329		36.4		377,612		281,843		95,769		34.0

Same properties	355,971		331,113		24,858		7.5		672,369		624,263		48,106		7.7
Non-same properties	91,509		34,551		56,958		164.9		208,848		83,362		125,486		150.5
Net operating income	$	447,480	$	365,664	$	81,816	22.4	%	$	881,217	$	707,625	$	173,592	24.5	%

Net operating income – same properties	$	355,971	$	331,113	$	24,858	7.5	%	$	672,369	$	624,263	$	48,106	7.7	%
Straight-line rent revenue	(15,859)		(22,214)		6,355		(28.6)		(41,101)		(41,360)		259		(0.6)
Amortization of acquired below-market leases	(9,875)		(9,338)		(537)		5.8		(14,063)		(14,365)		302		(2.1)
Net operating income – same properties (cash basis)	$	330,237	$	299,561	$	30,676	10.2	%	$	617,205	$	568,538	$	48,667	8.6	%

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. © 2022			22



Leasing Activity
June 30, 2022
(Dollars per RSF)


		Three Months Ended						Six Months Ended					Year Ended
		June 30, 2022						June 30, 2022					December 31, 2021
	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		45.4%	(2)		33.9%	(2)		39.0%			25.2%		37.9%		22.6%
New rates		$54.34			$52.31			$56.61			$54.47		$59.00		$55.60
Expiring rates		$37.36			$39.07			$40.73			$43.50		$42.80		$45.36
RSF		1,087,082						1,951,159					4,614,040
Tenant improvements/leasing commissions		$22.54						$26.83					$41.05
Weighted-average lease term		5.2 years						4.8 years					6.3 years

Developed/redeveloped/previously vacant space leased(3)
New rates		$76.69			$68.39			$79.72			$70.20		$78.52		$69.42
RSF		1,192,676						2,792,037					4,902,261
Weighted-average lease term		12.7 years						12.9 years					11.2 years

Leasing activity summary (totals):
New rates		$66.03			$60.72			$70.21			$63.73		$69.05		$62.72
RSF		2,279,758						4,743,196	(4)				9,516,301
Weighted-average lease term		9.1 years						9.5 years					8.8 years

Lease expirations(1)
Expiring rates		$34.82			$36.26			$38.15			$38.30		$41.53		$43.70
RSF		1,572,185						3,094,767					5,747,192

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

(1)Excludes month-to-month leases aggregating 210,038 RSF and 110,180 RSF as of June 30, 2022 and December 31, 2021, respectively.

(2)For 2Q22, rental rate increases of 45.4% and 33.9% (cash basis) represent the second-highest and the highest quarterly increases in Company history, respectively.

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

(4)During the six months ended June 30, 2022, we granted tenant concessions/free rent averaging 2.8 months with respect to the 4,743,196 RSF leased. Approximately 58% of the leases executed during the six months ended June 30, 2022 did not include concessions for free rent.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			23




Contractual Lease Expirations
June 30, 2022


Year			RSF		Percentage of Occupied RSF			Annual Rental Revenue (per RSF)(1)			Percentage of Total Annual Rental Revenue
	2022	(2)		987,720		2.6	%		$	51.62		2.6	%
	2023			3,897,615		10.1	%		$	44.39		9.0	%
	2024			3,444,777		8.9	%		$	45.38		8.1	%
	2025			3,488,483		9.0	%		$	48.77		8.8	%
	2026			2,515,497		6.5	%		$	50.94		6.6	%
	2027			2,671,591		6.9	%		$	53.50		7.4	%
	2028			3,782,340		9.8	%		$	49.10		9.6	%
	2029			2,345,066		6.1	%		$	58.28		7.1	%
	2030			2,486,008		6.4	%		$	56.28		7.3	%
	2031			3,034,985		7.9	%		$	52.91		8.3	%
Thereafter				9,987,771		25.8	%		$	48.39		25.2	%


Market	2022 Contractual Lease Expirations (in RSF)										Annual Rental Revenue (per RSF)(1)		2023 Contractual Lease Expirations (in RSF)										Annual Rental Revenue (per RSF)(1)
	Leased		Negotiating/ Anticipating		Targeted for Development/ Redevelopment(3)		Remaining Expiring Leases(4)		Total(2)				Leased		Negotiating/ Anticipating		Targeted for Development/ Redevelopment(3)		Remaining Expiring Leases		Total

Greater Boston	36,379		—		48,793		118,677		203,849		$	75.06	110,943		80,506		323,110		637,785		1,152,344		$	57.53
San Francisco Bay Area	—		74,992		—		60,622		135,614		44.87		15,711		160,622		250,000		338,410		764,743		59.11
New York City	—		—		—		24,303		24,303		N/A		—		—		—		85,055		85,055		N/A
San Diego	165,146		—		34,715		91,376		291,237		47.45		6,619		10,563		269,048		699,206		985,436		26.62
Seattle	—		7,566		50,552		41,087		99,205		13.67		—		—		110,885		266,752		377,637		25.19
Maryland	34,001		21,241		—		59,988		115,230		22.95		—		74,054		—		218,233		292,287		28.18
Research Triangle	—		—		—		30,855		30,855		35.48		—		81,956		—		126,941		208,897		32.40
Texas	65,188		—		—		—		65,188		24.89		—		—		—		—		—		—
Canada	—		14,590		—		—		14,590		34.66		—		13,321		—		—		13,321		29.99
Non-cluster/other markets	—		—		—		7,649		7,649		82.26		—		—		—		17,895		17,895		68.01
Total	300,714		118,389		134,060		434,557		987,720		$	51.62	133,273		421,022		953,043		2,390,277		3,897,615		$	44.39
Percentage of expiring leases	30	%	12	%	14	%	44	%	100	%			3	%	11	%	24	%	62	%	100	%

(1)Represents amounts in effect as of June 30, 2022.

(2)Excludes month-to-month leases aggregating 210,038 RSF as of June 30, 2022.

(3)Represents RSF targeted for development or redevelopment upon expiration of existing in-place leases primarily related to recently acquired properties with an average contractual lease expiration date of September 29, 2022 and January 30, 2023 for 2022 and 2023, respectively, weighted by annual rental revenue. 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.

(4)The largest remaining contractual expiration is 73,273 RSF in our Cambridge/Inner Suburbs submarket.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			24



Top 20 Tenants
June 30, 2022
(Dollars in thousands, except average market cap amounts)

86% of Top 20 Annual Rental Revenue 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		6.4			919,292		$	67,575	3.5	%	A2	A+	$	146.4
2	Eli Lilly and Company		7.0			733,781		48,836		2.5		A2	A+	$	252.5
3	Moderna, Inc.		15.1			878,933		48,777		2.5		—	—	$	98.2
4	Sanofi		6.3			490,154		42,284		2.2		A1	AA	$	129.6
5	Takeda Pharmaceutical Company Limited		7.5			549,760		37,399		1.9		Baa2	BBB+	$	47.3
6	Illumina, Inc.		8.1			891,495		36,196		1.9		Baa3	BBB	$	57.0
7	2seventy bio, Inc.(2)		11.2			312,805		33,617		1.7		—	—	$	0.5
8	Novartis AG		6.1			447,831		30,582		1.6		A1	AA-	$	211.3
9	TIBCO Software Inc.		4.7	(3)		292,013		28,537		1.5		—	—	$	—
10	Uber Technologies, Inc.		60.2	(4)		1,009,188		27,677		1.4		—	—	$	71.9
11	Roche		7.0			416,833		26,541		1.4		Aa3	AA	$	326.1
12	Merck & Co., Inc.		10.4			339,344		21,889		1.1		A1	A+	$	204.3
13	Maxar Technologies		3.5	(5)		478,000		21,803		1.1		—	—	$	2.2
14	Massachusetts Institute of Technology		6.5			257,626		21,165		1.1		Aaa	AAA	$	—
15	The Children's Hospital Corporation		14.3			269,816		20,066		1.0		Aa2	AA	$	—
16	New York University		9.4			203,500		19,241		1.0		Aa2	AA-	$	—
17	Pfizer Inc.		3.0			416,996		17,742		0.9		A2	A+	$	276.2
18	Apple Inc.		2.9			604,382		17,512		0.9		Aaa	AA+	$	2,560.6
19	United States Government		7.6			315,908		17,491		0.9		Aaa	AA+	$	—
20	Alphabet Inc.		4.7			354,304		16,985		0.9		Aa2	AA+	$	1,775.6
	Total/weighted-average		10.2	(4)		10,181,961		$	601,915	31.0	%

(1)Based on aggregate annual rental revenue in effect as of June 30, 2022. 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 this Supplemental Information for additional details about our methodology on annual rental revenue from unconsolidated real estate joint ventures and average market capitalization, respectively.

(2)Represents two leases in our Greater Boston and Seattle markets with in-place cash rents that are 5%–10% below current market. As of March 31, 2022, 2seventy bio, Inc. held $270.9 million of cash and cash equivalents.

(3)Represents the remaining lease term at four recently acquired properties with future redevelopment and development opportunities. The leases with this tenant were in place when we acquired the properties during the three months ended March 31, 2022.

(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) 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 7.8 years as of June 30, 2022.

(5)Represents the remaining lease term at two acquired properties with future redevelopment and development opportunities. The leases with this tenant were in place when we acquired the properties in 2019.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			25



Summary of Properties and Occupancy
June 30, 2022
(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	10,654,420	1,887,038	1,300,281	13,841,739	29	%	85	$	661,389	34	%	$	65.33
San Francisco Bay Area	8,678,996	230,592	300,010	9,209,598	20		72	477,206		25		61.26
New York City	1,204,461	—	65,558	1,270,019	3		5	96,228		5		82.14
San Diego	8,000,319	229,094	—	8,229,413	18		102	331,296		17		42.98
Seattle	2,813,803	311,631	213,976	3,339,410	7		46	108,333		6		39.60
Maryland	3,427,753	282,000	122,856	3,832,609	8		50	111,204		6		33.79
Research Triangle	3,550,170	329,718	376,871	4,256,759	9		42	94,291		5		28.41
Texas	1,668,718	—	201,499	1,870,217	4		14	36,884		1		28.20
Canada	614,028	—	—	614,028	1		7	11,190		—		23.74
Non-cluster/other markets	412,128	—	—	412,128	1		12	14,415		1		45.58
Properties held for sale	58,733	—	—	58,733	—		1	428		—		N/A
North America	41,083,529	3,270,073	2,581,051	46,934,653	100	%	436	$	1,942,864	100	%	$	50.80
		5,851,124

Summary of occupancy


	Operating Properties							Operating and Redevelopment Properties
Market	6/30/22			3/31/22		6/30/21		6/30/22		3/31/22		6/30/21
Greater Boston	95.0	%	(1)	95.4	%	95.5	%	84.7	%	85.0	%	91.0	%
San Francisco Bay Area	95.8			95.6		94.0		92.6		92.4		92.9
New York City	97.3		(2)	98.4		99.4		92.2		91.9		90.1
San Diego	96.3			94.2		93.8		96.3		92.7		92.3
Seattle	97.2			97.9		97.6		90.4		91.0		90.2
Maryland	97.6		(3)	100.0		98.9		94.2		96.4		90.3
Research Triangle	93.5			93.6		92.8		84.5		85.5		84.1
Texas	78.4			N/A		N/A		69.9		N/A		N/A
Subtotal	95.1			95.7		95.2		89.3		89.8		90.9
Canada	76.8			76.5		77.0		76.8		76.5		77.0
Non-cluster/other markets	76.7			80.4		46.0		76.7		75.7		46.0
North America	94.6	%	(4)	94.7	%	94.3	%	89.0	%	88.9	%	90.1	%

(1)Decline in occupancy primarily related to temporary vacancy of 40,282 RSF at one property in our Cambridge submarket.

(2)Decline in occupancy related to temporary vacancy of 13,298 RSF at 450 E. 29th Street. This space is leased with occupancy to commence in 3Q22.

(3)Decline in occupancy primarily related to temporary vacancy at one property in our Alexandria Technology Center® – Gaithersburg II campus. This space is leased with occupancy to commence in 1Q23.

(4)Refer to “Occupancy” of this Supplemental Information for additional details on vacancy at recently acquired properties.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			26



Property Listing
June 30, 2022
(Dollars in thousands)

Mega Campuses Encompass 66% of Our Operating Property RSF(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	2,369,854	—	403,892	2,773,746	11	$	185,373	98.9	%	84.5	%
		50(2), 60(2), 75/125(2), 100(2), and 225(2) Binney Street, 161 and 215 First Street, 150 Second Street, 300 Third Street(2), 11 Hurley Street, and One Rogers Street
		Mega Campus: Alexandria Center® at One Kendall Square	903,777	462,100	—	1,365,877	12	83,028		97.7		97.7
		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®	1,181,635	—	—	1,181,635	7	114,427		100.0		100.0
		100, 200, 300, 400, 500, 600, and 700 Technology Square
		Mega Campus: The Arsenal on the Charles	772,557	248,018	100,108	1,120,683	13	44,134		94.8		84.0
		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 500 and 550 Arsenal Street	495,127	—	—	495,127	3	23,014		98.3		98.3
		99 Coolidge Avenue(2)	—	320,809	—	320,809	1	—		N/A		N/A
		640 Memorial Drive	225,504	—	—	225,504	1	15,551		82.1		82.1
		780 and 790 Memorial Drive	99,658	—	—	99,658	2	9,168		100.0		100.0
		167 Sidney Street and 99 Erie Street	54,549	—	—	54,549	2	4,028		100.0		100.0
		79/96 13th Street (Charlestown Navy Yard)	25,309	—	—	25,309	1	797		100.0		100.0
		Cambridge/Inner Suburbs	6,127,970	1,030,927	504,000	7,662,897	53	479,520		97.8		90.4
	Fenway
		Mega Campus: Alexandria Center® for Life Science – Fenway	927,499	510,116	—	1,437,615	2	59,172		90.4		90.4
		401 Park Drive and 201 Brookline Avenue(2)
	Seaport Innovation District
		5 and 15(2) Necco Street	95,400	345,995	—	441,395	2	6,331		86.6		86.6
		Mega Campus: 380 and 420 E Street	195,506	—	—	195,506	2	4,472		100.0		100.0
		Seaport Innovation District	290,906	345,995	—	636,901	4	10,803		95.6		95.6
	Route 128
		Mega Campus: One Upland Road, 100 Tech Drive, and One Investors Way	706,988	—	—	706,988	4	29,059		100.0		100.0
		19, 225, and 235 Presidential Way	585,022	—	—	585,022	3	13,508		99.9		99.9
		Reservoir Woods	312,845	—	202,428	515,273	3	15,469		100.0		60.7
		40, 50, and 60 Sylvan Road
		275 Grove Street	509,702	—	—	509,702	3	17,253		75.6		75.6
		225, 266, and 275 Second Avenue	329,005	—	—	329,005	3	18,461		100.0		100.0
		840 Winter Street	28,230	—	139,984	168,214	1	1,239		100.0		16.8
		100 Beaver Street	82,330	—	—	82,330	1	5,110		100.0		100.0
		Route 128	2,554,122	—	342,412	2,896,534	18	100,099		95.1		83.9
	Other		753,923	—	453,869	1,207,792	8	11,795		77.5		48.3
		Greater Boston	10,654,420	1,887,038	1,300,281	13,841,739	85	$	661,389	95.0	%	84.7	%
	(1)Refer to “New Class 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. © 2022			27



Property Listing (continued)
June 30, 2022
(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)	2,015,177	—	—	2,015,177	9	$	96,014	99.9	%	99.9	%
		1455(2), 1515(2), 1655, and 1725 Third Street, 409 and 499 Illinois Street, 1500 and 1700 Owens Street, and 455 Mission Bay Boulevard South
		Mission Bay	2,015,177	—	—	2,015,177	9	96,014		99.9		99.9



	South San Francisco
		Mega Campus: Alexandria Technology Center® – Gateway(1)	1,114,890	230,592	300,010	1,645,492	12	53,869		85.0		67.0
		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	48,951		100.0		100.0
		Mega Campus: 1122 and 1150 El Camino Real	725,172	—	—	725,172	2	13,081		97.6		97.6
		Alexandria Center® for Life Science – South San Francisco	504,551	—	—	504,551	3	36,750		100.0		100.0
		201 Haskins Way and 400 and 450 East Jamie Court
		500 Forbes Boulevard(1)	155,685	—	—	155,685	1	10,680		100.0		100.0
		7000 Shoreline Court	139,709	—	—	139,709	1	8,657		100.0		100.0
		341 and 343 Oyster Point Boulevard	108,208	—	—	108,208	2	6,788		100.0		100.0
		849/863 Mitten Road/866 Malcolm Road	103,857	—	—	103,857	1	4,829		100.0		100.0
		South San Francisco	3,771,776	230,592	300,010	4,302,378	27	183,605		95.1		88.1
	Greater Stanford
		Mega Campus: Alexandria Center® for Life Science – San Carlos	739,192	—	—	739,192	9	49,745		95.3		95.3
		825, 835, 960, and 1501-1599 Industrial Road
		Alexandria Stanford Life Science District	703,742	—	—	703,742	9	63,683		98.9		98.9
		3160, 3165, 3170, and 3181 Porter Drive and 3301, 3303, 3305, 3307, and 3330 Hillview Avenue
		3825 and 3875 Fabian Way	478,000	—	—	478,000	2	21,802		100.0		100.0
		3412, 3420, 3440, 3450, and 3460 Hillview Avenue	338,751	—	—	338,751	5	21,133		73.8		73.8
		2100, 2200, 2300, and 2400 Geng Road	194,648	—	—	194,648	4	9,302		79.2		79.2
		2475 and 2625/2627/2631 Hanover Street and 1450 Page Mill Road	194,503	—	—	194,503	3	18,012		100.0		100.0
		2425 Garcia Avenue/2400/2450 Bayshore Parkway	99,208	—	—	99,208	1	4,257		100.0		100.0
		Shoreway Science Center	82,462	—	—	82,462	2	5,322		100.0		100.0
		75 and 125 Shoreway Road
		3350 West Bayshore Road	61,537	—	—	61,537	1	4,331		93.7		93.7
		Greater Stanford	2,892,043	—	—	2,892,043	36	197,587		93.9		93.9
		San Francisco Bay Area	8,678,996	230,592	300,010	9,209,598	72	$	477,206	95.8	%	92.6	%
	Refer to “New Class 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. © 2022			28



Property Listing (continued)
June 30, 2022
(Dollars in thousands)


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

										Operating		Operating and Redevelopment
			Operating	Development	Redevelopment	Total

New York City
	New York City
		Mega Campus: Alexandria Center® for Life Science – New York City	740,972	—	—	740,972	3	$	75,933	95.5	%	95.5	%
		430 and 450 East 29th Street
		219 East 42nd Street	349,947	—	—	349,947	1	14,006		100.0		100.0
		Alexandria Center® for Life Science – Long Island City	113,542	—	65,558	179,100	1	6,289		100.0		63.4
		30-02 48th Avenue
		New York City	1,204,461	—	65,558	1,270,019	5	96,228		97.3		92.2

San Diego
	Torrey Pines
		Mega Campus: One Alexandria Square and One Alexandria North	904,883	—	—	904,883	10	52,801		97.8		97.8
		3115 and 3215 Merryfield Row, 3010, 3013, and 3033 Science Park Road, 10975 and 11119 North Torrey Pines Road, 10975, 10995, and 10996 Torreyana Road, and 3545 Cray Court
		ARE Torrey Ridge	298,863	—	—	298,863	3	15,688		100.0		100.0
		10578, 10618, and 10628 Science Center Drive
		ARE Nautilus	213,900	—	—	213,900	4	12,352		88.1		88.1
		3530 and 3550 John Hopkins Court and 3535 and 3565 General Atomics Court
		Torrey Pines	1,417,646	—	—	1,417,646	17	80,841		96.8		96.8
	University Town Center
		Mega Campus: Alexandria Point(1)	1,436,198	—	—	1,436,198	8	69,937		97.3		97.3
		9880(2), 10210, 10260, 10290, and 10300 Campus Point Drive and 4161, 4224, and 4242 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	18,709		100.0		100.0
		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	2,644,347	—	—	2,644,347	21	118,624		98.5		98.5
	Sorrento Mesa
		Mega Campus: SD Tech by Alexandria(1)	976,842	84,981	—	1,061,823	14	37,866		93.4		93.4
		9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road, 5505 Morehouse Drive(2), and 10055, 10065, 10121(2), and 10151(2) Barnes Canyon Road
		Mega Campus: Sequence District by Alexandria	805,223	—	—	805,223	7	34,183		100.0		100.0
		6260, 6290, 6310, 6340, 6350, 6420, and 6450 Sequence Drive
		Pacific Technology Park(1)	572,887	—	—	572,887	6	8,926		96.0		96.0
		9389, 9393, 9401, 9444, 9455, and 9477 Waples Street
		Summers Ridge Science Park	316,531	—	—	316,531	4	$	11,077	100.0	%	100.0	%
		9965, 9975, 9985, and 9995 Summers Ridge Road
	Refer to “New Class 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. © 2022			29



Property Listing (continued)
June 30, 2022
(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 Mesa (continued)
		Scripps Science Park by Alexandria	99,970	144,113	—	244,083	3	$	2,498	100.0	%	100.0	%
		10102 Hoyt Park Drive and 10256 and 10260 Meanley Drive
		ARE Portola	101,857	—	—	101,857	3	3,603		100.0		100.0
		6175, 6225, and 6275 Nancy Ridge Drive
		7330 and 7360 Carroll Road	84,442	—	—	84,442	2	3,247		100.0		100.0
		5810/5820 Nancy Ridge Drive	83,354	—	—	83,354	1	3,853		100.0		100.0
		9877 Waples Street	63,774	—	—	63,774	1	2,374		100.0		100.0
		5871 Oberlin Drive	33,842	—	—	33,842	1	1,772		100.0		100.0
		Sorrento Mesa	3,138,722	229,094	—	3,367,816	42	109,399		97.2		97.2
	Sorrento Valley
		3911, 3931, 3985, 4025, and 4045 Sorrento Valley Boulevard	131,698	—	—	131,698	5	5,051		84.0		84.0
		11025, 11035, 11045, 11055, 11065, and 11075 Roselle Street	119,513	—	—	119,513	6	3,853		95.0		95.0
		Sorrento Valley	251,211	—	—	251,211	11	8,904		89.3		89.3
	Other		548,393	—	—	548,393	11	13,528		82.8		82.8
		San Diego	8,000,319	229,094	—	8,229,413	102	331,296		96.3		96.3

Seattle
	Lake Union
		Mega Campus: The Eastlake Life Science Campus by Alexandria	937,290	311,631	—	1,248,921	9	56,410		97.8		97.8
		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(1) and 601 Dexter Avenue North	308,791	—	—	308,791	2	15,380		100.0		100.0
		219 Terry Avenue North	30,705	—	—	30,705	1	1,855		100.0		100.0
		Lake Union	1,276,786	311,631	—	1,588,417	12	73,645		98.4		98.4
	SoDo
		830 4th Avenue South	42,380	—	—	42,380	1	1,628		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	%
	Refer to “New Class 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. © 2022			30



Property Listing (continued)
June 30, 2022
(Dollars in thousands)


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

										Operating		Operating and Redevelopment
			Operating	Development	Redevelopment	Total

Seattle (continued)
	Bothell
		Mega Campus: Alexandria Center® for Advanced Technologies – Canyon Park	1,060,958	—	—	1,060,958	22	$	22,634	97.4	%	97.4	%
		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	246,647	—	213,976	460,623	6	4,645		97.3		52.1
		3301, 3303, 3305, 3307, 3555, and 3755 Monte Villa Parkway
		Bothell	1,307,605	—	213,976	1,521,581	28	27,279		97.4		83.7
	Other		102,437	—	—	102,437	2	1,064		90.0		90.0
		Seattle	2,813,803	311,631	213,976	3,339,410	46	108,333		97.2		90.4

Maryland
	Rockville
		Mega Campus: Alexandria Center® for Life Science – Shady Grove	1,072,891	282,000	78,533	1,433,424	19	45,645		98.3		91.6
		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 Darnestown Road
		1330 Piccard Drive	131,511	—	—	131,511	1	4,021		100.0		100.0
		1405 and 1450(1) Research Boulevard	114,849	—	—	114,849	2	2,497		62.8		62.8
		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	2,992		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	1,530		100.0		100.0
		Rockville	1,575,167	282,000	78,533	1,935,700	27	60,317		96.2		91.6
	Gaithersburg
		Alexandria Technology Center® – Gaithersburg I	613,438	—	—	613,438	9	17,844		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	486,324	—	—	486,324	7	17,557		96.5		96.5
		700, 704, and 708 Quince Orchard Road and 19, 20, 21, and 22 Firstfield Road
		20400 Century Boulevard	36,227	—	44,323	80,550	1	1,400		100.0		45.0
		401 Professional Drive	63,154	—	—	63,154	1	1,903		100.0		100.0
		950 Wind River Lane	50,000	—	—	50,000	1	1,004		100.0		100.0
		620 Professional Drive	27,950	—	—	27,950	1	1,207		100.0		100.0
		Gaithersburg	1,277,093	—	44,323	1,321,416	20	40,915		98.7		95.4
	Beltsville
		8000/9000/10000 Virginia Manor Road	191,884	—	—	191,884	1	2,865		100.0		100.0
		101 West Dickman Street(1)	135,423	—	—	135,423	1	980		96.7		96.7
		Beltsville	327,307	—	—	327,307	2	$	3,845	98.6	%	98.6	%
	Refer to “New Class 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. © 2022			31



Property Listing (continued)
June 30, 2022
(Dollars in thousands)


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

										Operating		Operating and Redevelopment
			Operating	Development	Redevelopment	Total

Maryland (continued)
	Northern Virginia
		14225 Newbrook Drive	248,186	—	—	248,186	1	$	6,127	100.0	%	100.0	%
		Maryland	3,427,753	282,000	122,856	3,832,609	50	111,204		97.6		94.2

Research Triangle
	Research Triangle
		Mega Campus: Alexandria Center® for Life Science – Durham	1,880,185	—	376,871	2,257,056	16	37,636		93.2		77.6
		6, 8, 10, 12, 14, 40, 41, 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	367,240	180,000	—	547,240	5	14,179		87.3		87.3
		4, 6, 8, 10, and 12 Davis Drive
		Alexandria Center® for AgTech	279,099	61,680	—	340,779	2	12,443		98.7		98.7
		5 and 9 Laboratory Drive
		104 and 108/110/112/114 TW Alexander Drive	227,902	—	—	227,902	5	7,508		96.7		96.7
		Alexandria Technology Center® – Alston	186,870	—	—	186,870	3	4,227		90.8		90.8
		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	4,398		94.3		94.3
		7010, 7020, and 7030 Kit Creek Road
		7 Triangle Drive	104,531	—	—	104,531	1	3,479		100.0		100.0
		2525 East NC Highway 54	82,996	—	—	82,996	1	3,651		100.0		100.0
		407 Davis Drive	81,956	—	—	81,956	1	1,644		100.0		100.0
		601 Keystone Park Drive	77,395	—	—	77,395	1	1,072		74.3		74.3
		5 Triangle Drive	32,120	—	—	32,120	1	1,147		100.0		100.0
		6101 Quadrangle Drive	31,600	—	—	31,600	1	759		100.0		100.0
		Research Triangle	3,550,170	329,718	376,871	4,256,759	42	94,291		93.5		84.5

Texas
	Austin
		Mega Campus: Intersection Campus	1,525,613	—	—	1,525,613	12	36,884		85.7		85.7
	Greater Houston
		8800 Technology Forest Place	—	—	201,499	201,499	1	—		N/A		—
		Other	143,105	—	—	143,105	1	—		—		—
		Greater Houston	143,105	—	201,499	344,604	2	—		—		—
		Texas	1,668,718	—	201,499	1,870,217	14	36,884		78.4		69.9

Canada			614,028	—	—	614,028	7	11,190		76.8		76.8

Non-cluster/other markets			412,128	—	—	412,128	12	14,415		76.7		76.7

North America, excluding properties held for sale			41,024,796	3,270,073	2,581,051	46,875,920	435	1,942,436		94.6	%	89.0	%

Properties held for sale			58,733	—	—	58,733	1	428		100.0	%	100.0	%

Total – North America			41,083,529	3,270,073	2,581,051	46,934,653	436	$	1,942,864

Refer to “New Class 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. © 2022			32



Investments in Real Estate

June 30, 2022

Demand for our value-creation development and redevelopment projects consisting of high-quality office/laboratory space, and for our continued operational excellence at our world-class and sophisticated laboratory facilities, has translated into record leasing activity.


Projects Either Under Construction or Expected to Commence Construction in the Next Six Quarters(1)
>$665 Million Projected Incremental Annual Rental Revenue Primarily Commencing From 3Q22 Through 2Q25

7.8 million RSF(2)

78% Leased/Negotiating

As of June 30, 2022.

(1)We may also commence additional projects in this time frame, subject to market conditions.

(2)Includes 5.9 million RSF under construction that is 75% leased/negotiating and 2.0 million RSF expected to commence construction in the next six quarters that is 89% leased/negotiating.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			33



Investments in Real Estate
June 30, 2022
(Dollars in thousands)


			Development and Redevelopment
	Operating		Under Construction		Near Term			Intermediate Term		Future		Subtotal		Total
Investments in real estate
Gross book value as of June 30, 2022(1)	$	24,153,058	$	3,746,801	$	1,578,141		$	687,091	$	1,831,371	$	7,843,404	$	31,996,462

Square footage
Operating	41,083,529		—		—			—		—		—		41,083,529
New Class A development and redevelopment properties	—		5,851,124		6,984,447		(2)	3,920,041		20,419,252		37,174,864		37,174,864
Value-creation square feet currently included in rental properties(3)	—		—		(944,983)			(28,535)		(3,197,239)		(4,170,757)		(4,170,757)
Total square footage	41,083,529		5,851,124		6,039,464			3,891,506		17,222,013		33,004,107		74,087,636

(1)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.

(2)Includes 2.0 million RSF currently 89% leased/negotiating and expected to commence construction in the next six quarters. Refer to “New Class A development and redevelopment properties: current projects” for additional details.

(3)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.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			34


New Class A Development and Redevelopment Properties: Recent Deliveries


June 30, 2022

The Arsenal on the Charles

201 Haskins Way

825 and 835 Industrial Road

3160 Porter Drive

Greater Boston/
Cambridge/Inner Suburbs

San Francisco Bay Area/
South San Francisco

San Francisco Bay Area/
Greater Stanford

287,570 RSF

323,190 RSF

526,129 RSF

92,300 RSF

100% Occupancy

83% Occupancy

30-02 48th Avenue

3115 Merryfield Row

10055 Barnes Canyon Road

5505 Morehouse Drive

New York City/New York City

San Diego/Torrey Pines

San Diego/Sorrento Mesa

71,629 RSF

146,456 RSF

110,454 RSF

79,945 RSF

100% Occupancy

93% Occupancy

100% Occupancy


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			35


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


June 30, 2022

9601 and 9603 Medical Center Drive

9950 Medical Center Drive

20400 Century Boulevard

Maryland/Rockville

Maryland/Gaithersburg

17,378 RSF

84,264 RSF

36,227 RSF

100% Occupancy

2400 Ellis Road, 40 and 41 Moore Drive, and

14 TW Alexander Drive(1)

5 and 9 Laboratory Drive(2)

8 and 10 Davis Drive(3)

Research Triangle/Research Triangle

326,445 RSF

278,720 RSF

250,000 RSF

100% Occupancy

94% Occupancy

(1)Image represents 2400 Ellis Road in our Alexandria Center® for Life Science – Durham mega campus.

(2)Image represents 9 Laboratory Drive in our Alexandria Center® for AgTech campus.

(3)Image represents 10 Davis Drive in our Alexandria Center® for Advanced Technologies mega campus.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			36



New Class A Development and Redevelopment Properties: Recent Deliveries (continued)
June 30, 2022
(Dollars in thousands)


Property/Market/Submarket		Our Ownership Interest	RSF Placed in Service	Occupancy Percentage(3)		Total Project		Unlevered Yields
	2Q22 Delivery Date(1)		Prior to 1/1/22					1Q22	2Q22(2)			Total			Initial Stabilized			Initial Stabilized (Cash Basis)
							RSF			Investment
Development projects
201 Haskins Way/San Francisco Bay Area/South San Francisco	N/A	100%	270,879		52,311	—			323,190		100%	323,190	$	367,000		6.3	%		6.0	%
825 and 835 Industrial Road/San Francisco Bay Area/Greater Stanford	N/A	100%	476,211		49,918	—			526,129		100%	526,129	631,000			6.7			6.5
3115 Merryfield Row/San Diego/Torrey Pines	N/A	100%	—		146,456	—			146,456		93%	146,456	150,000			6.3			6.2
10055 Barnes Canyon Road/San Diego/Sorrento Mesa	5/11/22	50%	—		—	110,454			110,454		100%	195,435	181,000			7.2			6.6
9950 Medical Center Drive/Maryland/Rockville	N/A	100%	—		84,264	—			84,264		100%	84,264	57,000			8.9			7.8
5 and 9 Laboratory Drive/Research Triangle/Research Triangle	N/A	100%	267,509		11,211	—			278,720		100%	340,400	216,000			7.2			7.1
8 and 10 Davis Drive/Research Triangle/Research Triangle	6/21/22	100%	65,247		44,980	139,773			250,000		94%	250,000	159,000			7.6			7.3

Redevelopment projects
The Arsenal on the Charles/Greater Boston/Cambridge/Inner Suburbs	5/7/22	100%	137,111		99,796	50,663			287,570		100%	872,665	831,000			6.3			5.5
3160 Porter Drive/San Francisco Bay Area/Greater Stanford	N/A	100%	57,696		34,604	—			92,300		83%	92,300	117,000			4.6			4.6
30-02 48th Avenue/New York City/New York City	5/16/22	100%	41,848		11,092	18,689			71,629		100%	179,100	224,000			5.8			5.8
5505 Morehouse Drive/San Diego/Sorrento Mesa	4/27/22	100%	28,324		—	51,621			79,945		100%	79,945	68,000			7.1			7.2
9601 and 9603 Medical Center Drive/Maryland/Rockville	N/A	100%	17,378		—	—			17,378		100%	95,911	54,000			8.4			7.1
20400 Century Boulevard/Maryland/Gaithersburg	6/1/22	100%	—		32,033	4,194			36,227		100%	80,550	35,000			8.5			8.6
2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive/Research Triangle/Research Triangle	N/A	100%	326,445		—	—			326,445		100%	703,316	337,000			7.5			6.7
Total	5/18/22		1,688,648		566,665	375,394			2,630,707			3,969,661	$	3,427,000		6.7	%		6.2	%

Refer to “New Class 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)We expect the development and redevelopment RSF placed in service during the three months ended June 30, 2022 to generate initial annual net operating income of approximately $21 million for the twelve months following delivery.

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


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			37



New Class A Development and Redevelopment Properties: Current Projects

June 30, 2022

325 Binney Street

One Rogers Street

99 Coolidge Avenue

500 North Beacon Street and
4 Kingsbury Avenue

The Arsenal on the Charles

Greater Boston/
Cambridge/Inner Suburbs

462,100 RSF

403,892 RSF

320,809 RSF

248,018 RSF

100,108 RSF

100% Leased

36% Leased/Negotiating

85% Leased/Negotiating

95% Leased/Negotiating

201 Brookline Avenue

15 Necco Street

40, 50, and 60 Sylvan Road

840 Winter Street

651 Gateway Boulevard

Greater Boston/Fenway

Greater Boston/
Seaport Innovation District

Greater Boston/Route 128

San Francisco Bay Area/
South San Francisco

510,116 RSF

345,995 RSF

202,428 RSF

139,984 RSF

300,010 RSF

96% Leased/Negotiating

97% Leased/Negotiating

61% Leased/Negotiating

100% Leased

7% Leased/Negotiating


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			38



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

June 30, 2022

751 Gateway Boulevard

30-02 48th Avenue

10055 Barnes Canyon Road

1150 Eastlake Avenue East

9810 Darnestown Road

San Francisco Bay Area/
South San Francisco

New York City/New York City

San Diego/Sorrento Mesa

Seattle/Lake Union

Maryland/Rockville

230,592 RSF

65,558 RSF

84,981 RSF

311,631 RSF

192,000 RSF

100% Leased

72% Leased/Negotiating

100% Leased

89% Leased/Negotiating

100% Leased

9808 Medical Center Drive

9601 and 9603 Medical Center Drive

2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive(1)

4 Davis Drive

6040 George Watts Hill Drive,
Phase II

Maryland/Rockville

Research Triangle/Research Triangle

90,000 RSF

78,533 RSF

376,871 RSF

180,000 RSF

88,038 RSF

29% Leased/Negotiating

100% Leased

86% Leased/Negotiating

—% Leased/Negotiating

100% Leased

(1)Image represents 14 TW Alexander Drive in our Alexandria Center® for Life Science – Durham mega campus.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			39



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

June 30, 2022


Market Property/Submarket		Square Footage			Percentage					Occupancy(1)
	Dev/Redev	In Service	CIP	Total	Leased		Leased/Negotiating			Initial		Stabilized
Under construction
Greater Boston
325 Binney Street/Cambridge/Inner Suburbs	Dev	—	462,100	462,100	100	%	100	%			2023	2024
One Rogers Street/Cambridge/Inner Suburbs	Redev	4,367	403,892	408,259	100		100				2023	2023
99 Coolidge Avenue/Cambridge/Inner Suburbs	Dev	—	320,809	320,809	36		36				2024	2025
500 North Beacon Street and 4 Kingsbury Avenue/Cambridge/Inner Suburbs	Dev	—	248,018	248,018	85		85				2024	2025
The Arsenal on the Charles/Cambridge/Inner Suburbs	Redev	772,557	100,108	872,665	95		95				3Q21	2022
201 Brookline Avenue/Fenway	Dev	—	510,116	510,116	96		96				2022	2023
15 Necco Street/Seaport Innovation District	Dev	—	345,995	345,995	97		97				2024	2024
40, 50, and 60 Sylvan Road/Route 128	Redev	312,845	202,428	515,273	61		61				2023	2024
840 Winter Street/Route 128	Redev	28,230	139,984	168,214	100		100				2024	2024
Other	Redev	—	453,869	453,869	—		—				2023	2025
San Francisco Bay Area
651 Gateway Boulevard/South San Francisco	Redev	—	300,010	300,010	—		7		(2)		2023	2025
751 Gateway Boulevard/South San Francisco	Dev	—	230,592	230,592	100		100				2023	2023
New York City
30-02 48th Avenue/New York City	Redev	113,542	65,558	179,100	67		72				4Q20	2022
San Diego
10055 Barnes Canyon Road/Sorrento Mesa	Dev	110,454	84,981	195,435	100		100				2Q22	2022
10102 Hoyt Park Drive/Sorrento Mesa	Dev	—	144,113	144,113	100		100				2023	2023
Seattle
1150 Eastlake Avenue East/Lake Union	Dev	—	311,631	311,631	73		89				2023	2024
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Bothell	Redev	246,647	213,976	460,623	70		70				2022	2023
Maryland
9810 Darnestown Road/Rockville	Dev	—	192,000	192,000	100		100				2024	2024
9808 Medical Center Drive/Rockville	Dev	—	90,000	90,000	29		29				2023	2024
9601 and 9603 Medical Center Drive/Rockville	Redev	17,378	78,533	95,911	100		100				4Q21	2023
20400 Century Boulevard/Gaithersburg	Redev	36,227	44,323	80,550	77		100				1Q22	2023
Research Triangle
2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive/ Research Triangle	Redev	326,445	376,871	703,316	86		86				2Q21	2024
4 Davis Drive/Research Triangle	Dev	—	180,000	180,000	—		—		(2)		2023	2024
6040 George Watts Hill Drive, Phase II/Research Triangle	Dev	—	88,038	88,038	100		100				2024	2024
5 and 9 Laboratory Drive/Research Triangle	Redev/Dev	278,720	61,680	340,400	96		96				3Q21	2022
Texas
8800 Technology Forest Place/Greater Houston	Redev	—	201,499	201,499	23		23				2023	2024
		2,247,412	5,851,124	8,098,536	74	%	75	%
(1)Initial occupancy dates are subject to leasing and/or market conditions. Multi-tenant projects may have occupancy by tenants over a period of time. Stabilized occupancy may vary depending on single tenancy versus multi-tenancy. (2)This development project is focused on demand from our existing tenants in our adjacent properties/campuses. This project will also address demand from other non-ARE properties/campuses.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			40



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

June 30, 2022


Market Property/Submarket		Square Footage			Percentage
	Dev/Redev	In Service	CIP	Total	Leased		Leased/Negotiating
Pre-leased/negotiating near-term projects expected to commence construction in the next six quarters
San Francisco Bay Area
230 Harriet Tubman Way/South San Francisco	Dev	—	285,346	285,346	100	%	100	%
San Diego
11255 and 11355 North Torrey Pines Road/Torrey Pines	Dev	—	309,094	309,094	100		100
10931 and 10933 North Torrey Pines Road/Torrey Pines	Dev	—	299,158	299,158	100		100
Alexandria Point, Phase II/University Town Center	Dev	—	426,927	426,927	100		100
Alexandria Point, Phase I/University Town Center	Dev	—	171,102	171,102	100		100
Seattle
701 Dexter Avenue North/Lake Union	Dev	—	226,586	226,586	—		9
Maryland
9820 Darnestown Road/Rockville	Dev	—	250,000	250,000	—		100
		—	1,968,213	1,968,213	76		89
		2,247,412	7,819,337	10,066,749	74	%	78	%


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			41


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

June 30, 2022
(Dollars in thousands)


	Our Ownership Interest												Unlevered Yields
Market Property/Submarket			In Service		CIP		Cost to Complete			Total at Completion			Initial Stabilized			Initial Stabilized (Cash Basis)

Under construction
Greater Boston
325 Binney Street/Cambridge/Inner Suburbs	100	%	$	—	$	334,164	$	446,836		$	781,000			8.6	%		7.2	%
One Rogers Street/Cambridge/Inner Suburbs	100	%	10,765		916,883		278,352			1,206,000				5.2	%		4.2	%
99 Coolidge Avenue/Cambridge/Inner Suburbs	75.0	%	—		103,179		TBD
500 North Beacon Street and 4 Kingsbury Avenue/Cambridge/Inner Suburbs	100	%	—		85,054		341,946			427,000				6.2	%		5.5	%
The Arsenal on the Charles/Cambridge/Inner Suburbs	100	%	668,330		112,141		50,529			831,000				6.3	%		5.5	%
201 Brookline Avenue/Fenway	98.6	%	—		600,014		133,986			734,000				7.2	%		6.2	%
15 Necco Street/Seaport Innovation District	90.0	%	—		268,155		298,845			567,000				6.7	%		5.5	%
40, 50, and 60 Sylvan Road/Route 128	100	%	173,674		110,661		TBD
840 Winter Street/Route 128	100	%	13,227		86,450		108,323			208,000				7.5	%		6.5	%
Other	100	%	—		120,171		TBD
San Francisco Bay Area
651 Gateway Boulevard/South San Francisco	50.0	%	—		129,655		TBD
751 Gateway Boulevard/South San Francisco	51.0	%	—		134,513		155,487			290,000				6.5	%		6.3	%
New York City
30-02 48th Avenue/New York City	100	%	115,134		83,635		25,231			224,000				5.8	%		5.8	%
San Diego
10055 Barnes Canyon Road/Sorrento Mesa	50.0	%	67,997		44,054		68,949			181,000				7.2	%		6.6	%
10102 Hoyt Park Drive/Sorrento Mesa	100	%	—		65,628		48,372			114,000				7.4	%		6.5	%
Seattle
1150 Eastlake Avenue East/Lake Union	100	%	—		154,126		250,874			405,000				6.4	%		6.2	%
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Bothell	100	%	56,563		76,841		TBD
Maryland
9810 Darnestown Road/Rockville	100	%	—		49,148		83,852			133,000				6.9	%		6.2	%
9808 Medical Center Drive/Rockville	100	%	—		30,123		TBD
9601 and 9603 Medical Center Drive/Rockville	100	%	6,288		28,911		18,801			54,000				8.4	%		7.1	%
20400 Century Boulevard/Gaithersburg	100	%	15,296		9,747		9,957			35,000				8.5	%		8.6	%
Research Triangle
2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive/Research Triangle	100	%	93,455		101,799		141,746			337,000				7.5	%		6.7	%
4 Davis Drive/Research Triangle	100	%	—		21,362		TBD
5 and 9 Laboratory Drive/Research Triangle	100	%	162,721		37,986		15,293			216,000				7.2	%		7.1	%
6040 George Watts Hill Drive, Phase II/Research Triangle	100	%	—		4,256		59,744			64,000				8.0	%		7.0	%
Texas
8800 Technology Forest Place/Greater Houston	100	%	—		38,145		TBD

			$	1,383,450	$	3,746,801	$	4,210,000	(1)	$	9,340,000	(1)

(1)Amounts rounded to the nearest $10 million.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			42



New Class A Development and Redevelopment Properties: Summary of Pipeline
June 30, 2022
(Dollars in thousands)


Market Property/Submarket	Our Ownership Interest		Book Value		Square Footage
					Development and Redevelopment
					Under Construction	Near Term	Intermediate Term	Future	Total(1)

Greater Boston
Mega Campus: Alexandria Center® at One Kendall Square/Cambridge/ Inner Suburbs	100	%	$	334,164	462,100	—	—	—	462,100
325 Binney Street
Mega Campus: Alexandria Center® at Kendall Square/Cambridge/ Inner Suburbs	100	%	916,883		403,892	—	—	—	403,892
One Rogers Street
Mega Campus: The Arsenal on the Charles/Cambridge/Inner Suburbs	100	%	207,990		348,126	—	—	34,157	382,283
311 Arsenal Street, 400 and 500 North Beacon Street, 100 Talcott Avenue, and 4 Kingsbury Avenue
99 Coolidge Avenue/Cambridge/Inner Suburbs	75.0	%	103,179		320,809	—	—	—	320,809
Mega Campus: Alexandria Center® for Life Science – Fenway/Fenway	(2)		868,320		510,116	507,997	—	—	1,018,113
201 Brookline Avenue and 421 Park Drive
15 Necco Street/Seaport Innovation District	90.0	%	268,155		345,995	—	—	—	345,995
Reservoir Woods/Route 128	100	%	159,850		202,428	312,845	—	440,000	955,273
40, 50, and 60 Sylvan Road
840 Winter Street/Route 128	100	%	86,450		139,984	28,230	—	—	168,214
275 Grove Street/Route 128	100	%	—		—	160,251	—	—	160,251
10 Necco Street/Seaport Innovation District	100	%	96,555		—	—	175,000	—	175,000
215 Presidential Way/Route 128	100	%	6,808		—	—	112,000	—	112,000
Mega Campus: 480 Arsenal Way and 500 and 550 Arsenal Street/Cambridge/Inner Suburbs	100	%	56,988		—	—	—	775,000	775,000
550 Arsenal Street
Mega Campus: Alexandria Technology Square®/Cambridge/Inner Suburbs	100	%	7,881		—	—	—	100,000	100,000
Mega Campus: 380 and 420 E Street/Seaport Innovation District	100	%	123,514		—	—	—	1,000,000	1,000,000
99 A Street/Seaport Innovation District	100	%	48,882		—	—	—	235,000	235,000
Mega Campus: One Upland Road, 100 Tech Drive, and One Investors Way/Route 128	100	%	24,264		—	—	—	1,100,000	1,100,000
Other value-creation projects	100	%	174,664		453,869	190,992	—	466,504	1,111,365
			$	3,484,547	3,187,319	1,200,315	287,000	4,150,661	8,825,295
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 a new Class A property. 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 and commence future construction. Refer to “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties. (2)We have a 98.6% ownership interest in 201 Brookline Avenue aggregating 510,116 SF, which is currently under construction. We have a 100% ownership interest in the near-term development project at 421 Park Drive aggregating 507,997 SF.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			43



New Class A Development and Redevelopment Properties: Summary of Pipeline (continued)
June 30, 2022
(Dollars in thousands)


Market Property/Submarket	Our Ownership Interest		Book Value		Square Footage
					Development and Redevelopment
					Under Construction	Near Term	Intermediate Term		Future	Total(1)

San Francisco Bay Area
Mega Campus: Alexandria Technology Center® – Gateway/ South San Francisco	(2)		$	286,827	530,602	—	—		291,000	821,602
651 and 751 Gateway Boulevard
Mega Campus: Alexandria Center® for Science and Technology – Mission Bay/Mission Bay	100	%	74,098		—	191,000	—		—	191,000
1450 Owens Street
Alexandria Center® for Life Science – Millbrae/South San Francisco	48.5	%	167,091		—	633,747	—		—	633,747
230 Harriet Tubman Way, 201 and 231 Adrian Road, and 6 and 30 Rollins Road
3825 and 3875 Fabian Way/Greater Stanford	100	%	—		—	250,000	—		228,000	478,000
Mega Campus: Alexandria Center® for Life Science – San Carlos/Greater Stanford	100	%	369,162		—	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	%	6,337		—	56,924	—		—	56,924
Mega Campus: 88 Bluxome Street/SoMa	100	%	331,907		—	1,070,925	—		—	1,070,925
Mega Campus: 1122, 1150, and 1178 El Camino Real/South San Francisco	100	%	335,885		—	—	—		1,930,000	1,930,000
Mega Campus: 211(3), 213(3), 249, 259, 269, and 279 East Grand Avenue/ South San Francisco	100	%	6,624		—	—	—		90,000	90,000
211 East Grand Avenue
Other value-creation projects	100	%	—		—	—	—		25,000	25,000
			1,577,931		530,602	2,307,596	700,000		3,256,830	6,795,028
New York City
Alexandria Center® for Life Science – Long Island City/New York City	100	%	115,368		65,558	135,938	—		—	201,496
30-02 48th Avenue and 47-50 30th Street
Mega Campus: Alexandria Center® for Life Science – New York City/ New York City	100	%	98,380		—	—	550,000	(4)	—	550,000
219 East 42nd Street/New York City	100	%	—		—	—	—		579,947	579,947
			$	213,748	65,558	135,938	550,000		579,947	1,331,443
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 a new Class A property. 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 and commence future construction. Refer to “Definitions and reconciliations” of this Supplemental Information for additional details on value-creation square feet currently included in rental properties. (2)We own a 50.0% ownership interest in 651 Gateway Boulevard aggregating 300,010 RSF and a 51.0% ownership interest in 751 Gateway Boulevard aggregating 230,592 RSF. (3)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. (4)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 approximating 550,000 SF.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			44



New Class A Development and Redevelopment Properties: Summary of Pipeline (continued)
June 30, 2022
(Dollars in thousands)


Market Property/Submarket	Our Ownership Interest		Book Value		Square Footage
					Development and Redevelopment
					Under Construction	Near Term	Intermediate Term	Future	Total(1)

San Diego
Mega Campus: SD Tech by Alexandria/Sorrento Mesa	50.0	%	$	143,560	84,981	190,074	160,000	333,845	768,900
9805 Scranton Road and 10055 and 10075 Barnes Canyon Road
Scripps Science Park by Alexandria/Sorrento Mesa	100	%	121,206		144,113	105,000	70,041	164,000	483,154
10102 Hoyt Park Drive, 10048 and 12019 Meanley Drive, and 10277 Scripps Ranch Boulevard
Mega Campus: One Alexandria Square/Torrey Pines	100	%	224,288		—	608,252	—	125,280	733,532
10931, 10933, 11255, and 11355 North Torrey Pines Road and 10975 and 10995 Torreyana Road
Mega Campus: Alexandria Point/University Town Center	55.0	%	130,202		—	598,029	—	324,445	922,474
10260 Campus Point Drive and 4110, 4150, and 4161 Campus Point Court
Mega Campus: Sequence District by Alexandria/Sorrento Mesa	100	%	41,334		—	200,000	509,000	1,089,915	1,798,915
6260, 6290, 6310, 6340, 6350, and 6450 Sequence Drive
Mega Campus: University District/University Town Center	100	%	193,622		—	—	1,137,000	—	1,137,000
9363, 9373, 9393 Towne Centre Drive, 4555 Executive Drive, 8410-8750 Genesee Avenue, and 4282 Esplanade Court
9444 Waples Street/Sorrento Mesa	50.0	%	21,058		—	—	149,000	—	149,000
Mega Campus: 5200 Illumina Way/University Town Center	51.0	%	14,487		—	—	—	451,832	451,832
4025, 4031, 4045, and 4075 Sorrento Valley Boulevard/Sorrento Valley	100	%	20,281		—	—	—	247,000	247,000
Other value-creation projects	100	%	71,919		—	—	—	539,235	539,235
			981,957		229,094	1,701,355	2,025,041	3,275,552	7,231,042
Seattle
Mega Campus: The Eastlake Life Science Campus by Alexandria/ Lake Union	100	%	154,126		311,631	—	—	—	311,631
1150 Eastlake Avenue East
Alexandria Center® for Advanced Technologies – Monte Villa Parkway/Bothell	100	%	76,841		213,976	50,552	—	—	264,528
3301, 3555, and 3755 Monte Villa Parkway
Mega Campus: Alexandria Center® for Life Science – South Lake Union/ Lake Union	(2)		342,946		—	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	%	$	52,789	—	—	—	597,313	597,313
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 a new Class A property. 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 and commence future construction. Refer to “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% ownership interest in 601 and 701 Dexter Avenue North aggregating 414,986 SF and a 60% ownership interest in the near-term development project at 800 Mercer Street aggregating 869,000 SF.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			45



New Class A Development and Redevelopment Properties: Summary of Pipeline (continued)
June 30, 2022
(Dollars in thousands)


Market Property/Submarket	Our Ownership Interest		Book Value			Square Footage
						Development and Redevelopment
						Under Construction	Near Term	Intermediate Term	Future	Total(1)

Seattle (continued)
Mega Campus: Alexandria Center® for Advanced Technologies – Canyon Park/Bothell	100	%	$	13,392		—	—	—	230,000	230,000
21660 20th Avenue Southeast
Other value-creation projects	100	%	79,258			—	—	—	691,000	691,000
			719,352			525,607	1,146,138	—	1,706,713	3,378,458
Maryland
Mega Campus: Alexandria Center® for Life Science – Shady Grove/Rockville	100	%	143,407			360,533	250,000	258,000	38,000	906,533
9601, 9603, and 9808 Medical Center Drive and 9810, 9820, and 9830 Darnestown Road
20400 Century Boulevard/Gaithersburg	100	%	9,747			44,323	—	—	—	44,323
			153,154			404,856	250,000	258,000	38,000	950,856
Research Triangle
Mega Campus: Alexandria Center® for Life Science – Durham/ Research Triangle	100	%	248,421			376,871	—	—	2,060,000	2,436,871
40 and 41 Moore Drive and 14 TW Alexander Drive
Mega Campus: Alexandria Center® for Advanced Technologies/ Research Triangle	100	%	56,401			180,000	—	—	990,000	1,170,000
4 and 12 Davis Drive
6040 George Watts Hill Drive, Phase II/Research Triangle	100	%	4,256			88,038	—	—	—	88,038
Alexandria Center® for AgTech/Research Triangle	100	%	37,986			61,680	—	—	—	61,680
9 Laboratory Drive
Mega Campus: Alexandria Center® for NextGen Medicines/ Research Triangle	100	%	98,089			—	100,000	100,000	855,000	1,055,000
3029 East Cornwallis Road
120 TW Alexander Drive, 2752 East NC Highway 54, and 10 South Triangle Drive/Research Triangle	100	%	50,121			—	—	—	750,000	750,000
Other value-creation projects	100	%	4,185			—	—	—	76,262	76,262
			499,459			706,589	100,000	100,000	4,731,262	5,637,851
Texas
8800 Technology Forest Place/Greater Houston	100	%	42,981			201,499	—	—	116,287	317,786
Other value-creation projects	100	%	136,837			—	143,105	—	2,090,000	2,233,105
			179,818			201,499	143,105	—	2,206,287	2,550,891
Other value-creation projects	100	%	33,438			—	—	—	474,000	474,000
Total pipeline as of June 30, 2022			$	7,843,404	(2)	5,851,124	6,984,447	3,920,041	20,419,252	37,174,864	(1)

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

(1)Total square footage includes 4,170,757 RSF of buildings currently in operation that will be redeveloped or replaced with new development RSF upon commencement of future construction. Refer to “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 $3.7 billion of projects currently under construction that are 75% leased/negotiating. We also expect to commence construction on pre-leased/negotiating near-term projects aggregating $441.8 million in the next six quarters that are 89% leased/negotiating.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			46



Construction Spending
June 30, 2022
(In thousands)


	Six Months Ended
Construction Spending	June 30, 2022
Additions to real estate – consolidated projects	$	1,377,589
Investments in unconsolidated real estate joint ventures		336
Contributions from noncontrolling interests		(99,215)
Construction spending (cash basis)		1,278,710
Change in accrued construction		115,575
Construction spending		1,394,285
Projected construction spending for the six months ending December 31, 2022		1,605,715
Guidance midpoint	$	3,000,000	(1)


	Year Ending
Projected Construction Spending	December 31, 2022
Development, redevelopment, and pre-construction projects	$	3,106,000
Contributions from noncontrolling interests (consolidated real estate joint ventures)		(286,000)
Revenue-enhancing and repositioning capital expenditures		98,000
Non-revenue-enhancing capital expenditures		82,000
Guidance midpoint	$	3,000,000	(1)

(1)During the three months ended June 30, 2022, we reduced our projected construction spending for the remainder of 2022 by $285 million. Refer to “Guidance” in the Earnings Press Release of our Supplemental Information for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			47




Joint Venture Financial Information
June 30, 2022

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 Binney Street

Greater Boston

Cambridge/Inner Suburbs

70.0%

432,931

225 Binney Street

Greater Boston

Cambridge/Inner Suburbs

70.0%

305,212

300 Third Street

Greater Boston

Cambridge/Inner Suburbs

70.0%

131,963

99 Coolidge Avenue

Greater Boston

Cambridge/Inner Suburbs

25.0%

—

(2)

Alexandria Center® for Science and Technology – Mission Bay(3)

San Francisco Bay Area

Mission Bay

75.0%

1,005,989

601, 611, 651, 681, 685, and 701 Gateway Boulevard

San Francisco Bay Area

South San Francisco

50.0%

789,567

751 Gateway Boulevard

San Francisco Bay Area

South San Francisco

49.0%

—

(2)

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

51.5%

—

Alexandria Point(4)

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

49.9%

163,648

SD Tech by Alexandria(5)

San Diego

Sorrento Mesa

50.0%

793,957

Pacific Technology Park

San Diego

Sorrento Mesa

50.0%

572,887

1201 and 1208 Eastlake Avenue East and 199 East Blaine Street

Seattle

Lake Union

70.0%

321,218

400 Dexter Avenue North

Seattle

Lake Union

70.0%

290,111

800 Mercer Street

Seattle

Lake Union

40.0%

—

Unconsolidated Real Estate Joint Ventures

Property

Market

Submarket

Our Ownership Share(6)

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%

(7)

(8)

1450 Research Boulevard

Maryland

Rockville

73.2%

(9)

42,679

101 West Dickman Street

Maryland

Beltsville

57.9%

(9)

135,423

(1)In addition to the consolidated real estate joint ventures listed, various partners hold insignificant noncontrolling interests in three other real estate joint ventures in North America.

(2)Represents a property currently under construction. Refer to “New Class A development and redevelopment properties: current projects” for additional details.

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

(4)Includes 10210, 10260, 10290, and 10300 Campus Point Drive and 4110, 4150, 4161, 4224, and 4242 Campus Point Court in our University Town Center submarket.

(5)Includes 9605, 9645, 9675, 9685, 9725, 9735, 9808, 9855, and 9868 Scranton Road and 10055 and 10065 Barnes Canyon Road in our Sorrento Mesa submarket.

(6)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.

(7)Represents our ownership interest; our voting interest is limited to 50%.

(8)Represents a joint venture with a distinguished retail real estate developer for an approximately 90,000 RSF retail shopping center.

(9)Represents a joint venture with a local real estate operator in which our partner manages the day-to-day activities that significantly affect the economic performance of the joint venture.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			48



Joint Venture Financial Information (continued)
June 30, 2022
(In thousands)


		As of June 30, 2022
	Noncontrolling Interest Share of Consolidated Real Estate JVs		Our Share of Unconsolidated Real Estate JVs
Investments in real estate	$	3,036,883	$	110,461
Cash, cash equivalents, and restricted cash		110,417		4,466
Other assets		351,455		10,400
Secured notes payable (refer to page 53)		(6,077)		(83,998)
Other liabilities		(169,877)		(3,742)
Redeemable noncontrolling interests		(9,612)		—
	$	3,313,189	$	37,587



	Noncontrolling Interest Share of Consolidated Real Estate JVs				Our Share of Unconsolidated Real Estate JVs
	June 30, 2022				June 30, 2022
	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended
Total revenues	$	89,263	$	167,940	$	2,728	$	5,566
Rental operations		(25,331)		(48,028)		(638)		(1,370)
		63,932		119,912		2,090		4,196
General and administrative		(547)		(870)		(25)		(96)
Interest		—		—		(918)		(1,778)
Depreciation and amortization of real estate assets		(26,418)		(50,099)		(934)		(1,889)

Fixed returns allocated to redeemable noncontrolling interests(1)		201		402		—		—
	$	37,168	$	69,345	$	213	$	433

Straight-line rent and below-market lease revenue	$	4,309	$	8,633	$	287	$	540
Funds from operations(2)	$	63,586	$	119,444	$	1,147	$	2,322

(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 reconciliation from the most directly comparable financial measure presented in accordance with GAAP.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			49



Investments
June 30, 2022
(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 non-real estate investments and investment income. For additional details, refer to “Investments” in the “Definitions and reconciliations” of this Supplemental Information.


	June 30, 2022
	Three Months Ended		Six Months Ended		Year Ended December 31, 2021
Realized gains	$	28,647	$	51,761	$	215,845	(1)
Unrealized (losses) gains	(68,128)		(331,561)		43,632
Investment (loss) income	$	(39,481)	$	(279,800)	$	259,477


	June 30, 2022
Investments	Cost			Unrealized Gains			Carrying Amount

Publicly traded companies	$	220,033		$	24,292	(2)	$	244,325
Entities that report NAV	433,133			355,062			788,195
Entities that do not report NAV:
Entities with observable price changes	68,744			80,457			149,201
Entities without observable price changes	395,271			—			395,271
Investments accounted for under the equity method of accounting	N/A			N/A			80,469
June 30, 2022	$	1,117,181	(3)	$	459,811	(4)	$	1,657,461

December 31, 2021	$	1,007,303		$	797,673		$	1,876,564

(1)Includes six separate significant realized gains aggregating $110.1 million related to the following transactions: (i) the sales of investments in three publicly traded biotechnology companies, (ii) a distribution received from a limited partnership investment, and (iii) the acquisition of two of our privately held non-real estate investments in a biopharmaceutical company and a biotechnology company.

(2)Comprises gross unrealized gains and losses of $122.5 million and $98.2 million, respectively.

(3)Represents 3.0% of gross assets as of June 30, 2022.

(4)Comprises gross unrealized gains and losses of $565.5 million and $105.7 million, respectively.


			Public/Private Mix (Cost)


			Tenant/Non-Tenant Mix (Cost)


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			50




Key Credit Metrics
June 30, 2022

Liquidity

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

(in millions)

$5.5B

(in millions)

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

2,850

Outstanding forward equity sales agreements(1)

1,697

Cash, cash equivalents, and restricted cash

518

Remaining construction loan commitments

169

Investments in publicly traded companies

244

Liquidity as of June 30, 2022

5,478

Net Debt and Preferred Stock to Adjusted EBITDA(2)

Fixed-Charge Coverage Ratio(2)

(1)Represents expected net proceeds from the future settlement of 9.0 million shares of forward equity sales agreements.

(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. © 2022			51



Summary of Debt
June 30, 2022
(In millions)

Weighted-Average Remaining Term of 13.6 Years

(1)Refer to footnote 3 on the next page under “Fixed-rate and variable-rate debt” for additional details.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			52



Summary of Debt (continued)
June 30, 2022
(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	$	678		$	24,308		$	24,986		0.2	%	3.78	%	4.6
Unsecured senior notes payable	10,096,462			—			10,096,462			98.3		3.51		13.8
Unsecured senior line of credit(2)	—			—			—			—		N/A		3.5
Commercial paper program	—			149,958			149,958			1.5		2.02		(3)
Total/weighted average	$	10,097,140		$	174,266		$	10,271,406		100.0	%	3.49	%	13.6	(3)
Percentage of total debt	98.3		%	1.7		%	100.0		%

(1)Represents the weighted-average interest rate as of the end of the applicable period, including expense/income related to the amortization of loan fees, amortization of debt premiums (discounts), and other bank fees.

(2)During the year ended December 31, 2021, we achieved certain sustainability measures, as described in our unsecured senior line of credit agreement, which reduced the borrowing rate by one basis point for a one-year period to LIBOR+0.815% from LIBOR+0.825%.

(3)The commercial paper program provides us with the ability to issue up to $1.5 billion of commercial paper notes that bear interest at short-term fixed rates and can generally be issued with a maturity of 30 days or less and with a maximum maturity of 397 days from the date of issuance. Borrowings under the program are used to fund short-term capital needs and are backed by our unsecured senior line of credit. There was $150.0 million of commercial paper notes outstanding as of June 30, 2022. 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 L+0.815%. As such, 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, the consolidated weighted-average maturity of our debt is 13.5 years. The commercial paper notes sold during the three months ended June 30, 2022 were issued at a weighted-average yield to maturity of 1.35% and had a weighted-average maturity term of 11 days.

Debt covenants

Unsecured Senior Notes Payable

Unsecured Senior Line of Credit

Debt Covenant Ratios(1)

Requirement

June 30, 2022

Requirement

June 30, 2022

Total Debt to Total Assets

≤ 60%

29%

≤ 60.0%

28.5%

Secured Debt to Total Assets

≤ 40%

0.1%

≤ 45.0%

0.1%

Consolidated EBITDA to Interest Expense

≥ 1.5x

15.7x

≥ 1.50x

4.55x

Unencumbered Total Asset Value to Unsecured Debt

≥ 150%

333%

N/A

Unsecured Interest Coverage Ratio

N/A

≥ 1.75x

11.91x

(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	Our Share		Maturity Date	Stated Rate		Interest Rate(1)		Aggregate Commitment		Debt Balance(2)
1401/1413 Research Boulevard		65.0%	12/23/24	2.70%			3.32%	$	28,500	$	28,064
1655 and 1725 Third Street		10.0%	3/10/25	4.50%			4.57%	600,000		598,868
101 West Dickman Street		57.9%	11/10/26	SOFR+1.95%	(3)		3.51%	26,750		10,129
1450 Research Boulevard		73.2%	12/10/26	SOFR+1.95%	(3)		N/A	13,000		—
								$	668,250	$	637,061

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

(2)Represents outstanding principal, net of unamortized deferred financing costs, as of June 30, 2022.

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


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			53



Summary of Debt (continued)
June 30, 2022
(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
								2022		2023		2024		2025		2026			Thereafter
Secured notes payable
Greater Boston(3)	SOFR+2.70	%		3.71	%		11/19/26	$	—	$	—	$	—	$	—	$	25,975		$	—	$	25,975	$	(1,667)	$	24,308
San Francisco Bay Area	6.50	%		6.50			7/1/36	28		30		32		34		36			518		678		—		678
Secured debt weighted-average interest rate/subtotal	2.80	%		3.78				28		30		32		34		26,011			518		26,653		(1,667)		24,986

Commercial paper program(4)(5)	2.02	%	(4)	2.02		(4)	(4)	(4)		—		—		—		150,000		(4)	—		150,000		(42)		149,958
Unsecured senior line of credit(5)	L+0.815	%		N/A			1/6/26	—		—		—		—		—			—		—		—		—
Unsecured senior notes payable	3.45	%		3.62			4/30/25	—		—		—		600,000		—			—		600,000		(2,498)		597,502
Unsecured senior notes payable	4.30	%		4.50			1/15/26	—		—		—		—		300,000			—		300,000		(1,748)		298,252
Unsecured senior notes payable – green bond	3.80	%		3.96			4/15/26	—		—		—		—		350,000			—		350,000		(1,873)		348,127
Unsecured senior notes payable	3.95	%		4.13			1/15/27	—		—		—		—		—			350,000		350,000		(2,323)		347,677
Unsecured senior notes payable	3.95	%		4.07			1/15/28	—		—		—		—		—			425,000		425,000		(2,361)		422,639
Unsecured senior notes payable	4.50	%		4.60			7/30/29	—		—		—		—		—			300,000		300,000		(1,579)		298,421
Unsecured senior notes payable	2.75	%		2.87			12/15/29	—		—		—		—		—			400,000		400,000		(3,082)		396,918
Unsecured senior notes payable	4.70	%		4.81			7/1/30	—		—		—		—		—			450,000		450,000		(2,982)		447,018
Unsecured senior notes payable	4.90	%		5.05			12/15/30	—		—		—		—		—			700,000		700,000		(6,679)		693,321
Unsecured senior notes payable	3.375	%		3.48			8/15/31	—		—		—		—		—			750,000		750,000		(5,946)		744,054
Unsecured senior notes payable – green bond	2.00	%		2.12			5/18/32	—		—		—		—		—			900,000		900,000		(9,257)		890,743
Unsecured senior notes payable	1.875	%		1.97			2/1/33	—		—		—		—		—			1,000,000		1,000,000		(9,272)		990,728
Unsecured senior notes payable – green bond	2.95	%		3.07			3/15/34	—		—		—		—		—			800,000		800,000		(9,109)		790,891
Unsecured senior notes payable	4.85	%		4.93			4/15/49	—		—		—		—		—			300,000		300,000		(3,159)		296,841
Unsecured senior notes payable	4.00	%		3.91			2/1/50	—		—		—		—		—			700,000		700,000		10,273		710,273
Unsecured senior notes payable	3.00	%		3.08			5/18/51	—		—		—		—		—			850,000		850,000		(12,176)		837,824
Unsecured senior notes payable	3.55	%		3.63			3/15/52	—		—		—		—		—			1,000,000		1,000,000		(14,767)		985,233
Unsecured debt weighted average/subtotal				3.49				—		—		—		600,000		800,000			8,925,000		10,325,000		(78,580)		10,246,420
Weighted-average interest rate/total				3.49	%			$	28	$	30	$	32	$	600,034	$	826,011		$	8,925,518	$	10,351,653	$	(80,247)	$	10,271,406

Balloon payments								$	—	$	—	$	—	$	600,000	$	825,975		$	8,925,068	$	10,351,043	$	—	$	10,351,043
Principal amortization								28		30		32		34		36			450		610		(80,247)		(79,637)
Total debt								$	28	$	30	$	32	$	600,034	$	826,011		$	8,925,518	$	10,351,653	$	(80,247)	$	10,271,406

Fixed-rate debt								$	28	$	30	$	32	$	600,034	$	650,036		$	8,925,518	$	10,175,678	$	(78,538)	$	10,097,140
Variable-rate debt								—		—		—		—		175,975			—		175,975		(1,709)		174,266
Total debt								$	28	$	30	$	32	$	600,034	$	826,011		$	8,925,518	$	10,351,653	$	(80,247)	$	10,271,406

Weighted-average stated rate on maturing debt								N/A		N/A		N/A		3.45%		3.62%			3.36%

(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 own a 75.0% interest. As of June 30, 2022, this joint venture has $169.3 million available under the 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 footnote 3 on the prior page under “Fixed-rate and variable-rate debt.”

(5)We plan to amend and extend our unsecured senior line of credit in 2H22. We may also consider increasing the size of our commercial paper program up to 50% of the total commitments under our unsecured senior line of credit.


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Definitions and Reconciliations
June 30, 2022

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)	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21
Net income (loss)	$	309,382	$	(117,392)	$	99,796	$	124,433	$	404,520
Interest expense	24,257		29,440		34,862		35,678		35,158
Income taxes	2,089		3,571		4,156		3,672		2,800
Depreciation and amortization	242,078		240,659		239,254		210,842		190,052
Stock compensation expense	14,340		14,028		14,253		9,728		12,242
Loss on early extinguishment of debt	3,317		—		—		—		—
(Gain) loss on sales of real estate	(214,219)		—		(124,226)		435		—
Significant realized gains on non-real estate investments	—		—		—		(52,427)		(34,773)
Unrealized losses (gains) on non-real estate investments	68,128		263,433		139,716		14,432		(244,031)
Impairment of real estate	—		—		—		42,620		4,926
Adjusted EBITDA	$	449,372	$	433,739	$	407,811	$	389,413	$	370,894

Total revenues	$	643,764	$	615,065	$	576,923	$	547,759	$	509,619

Adjusted EBITDA margin	70%		71%		71%		71%		73%

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 June 30, 2022, approximately 91% 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 for the quarter preceding the date on which the property is sold, or near term prospective net operating income.


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			55




Definitions and Reconciliations (continued)
June 30, 2022

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 properties and AAA locations

Class 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 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.

Construction costs related to active development and redevelopment projects under contract

Includes (i) costs incurred to date, (ii) remaining costs to complete under a general contractor's guaranteed maximum price construction contract or other fixed contracts, and (iii) our maximum committed tenant improvement allowances under our executed leases. The general contractor's guaranteed maximum price contract or other fixed contracts reduce our exposure to costs of construction materials, labor, and services from third-party contractors and suppliers, unless the overruns result from, among other things, a force majeure event or a change in the scope of work covered by the contract.

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 properties, and property enhancements identified during the underwriting of certain acquired properties, located in collaborative life science, agtech, and technology 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 a significant increase 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 office/laboratory, agtech, or tech office space. We generally will not commence new development projects for aboveground construction of new Class A office/laboratory, agtech, and tech office space without first securing significant pre-leasing for such space, except when there is solid market demand for high-quality Class 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 office/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.

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.


Space Intentionally Blank
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Definitions and Reconciliations (continued)
June 30, 2022

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)	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21
Adjusted EBITDA	$	449,372	$	433,739	$	407,811	$	389,413	$	370,894

Interest expense	$	24,257	$	29,440	$	34,862	$	35,678	$	35,158
Capitalized interest	68,202		57,763		44,078		43,185		43,492
Amortization of loan fees	(3,236)		(3,103)		(2,911)		(2,854)		(2,859)
Amortization of debt (discounts) premiums	(267)		424		502		498		465
Cash interest and fixed charges	$	88,956	$	84,524	$	76,531	$	76,507	$	76,256

Fixed-charge coverage ratio:
– quarter annualized	5.1x		5.1x		5.3x		5.1x		4.9x
– trailing 12 months	5.1x		5.1x		5.0x		4.8x		4.6x

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. 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
	June 30, 2022				June 30, 2022
(In thousands)	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended
Net income	$	37,168	$	69,345	$	213	$	433
Depreciation and amortization of real estate assets	26,418		50,099		934		1,889

Funds from operations	$	63,586	$	119,444	$	1,147	$	2,322

Gross assets

Gross assets are calculated as total assets plus accumulated depreciation:


(In thousands)	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21
Total assets	$	33,244,053	$	32,844,256	$	30,219,373	$	28,558,718	$	27,018,850
Accumulated depreciation	4,060,536		3,951,666		3,771,241		3,614,440		3,461,780
Gross assets	$	37,304,589	$	36,795,922	$	33,990,614	$	32,173,158	$	30,480,630

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.


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Definitions and Reconciliations (continued)
June 30, 2022

Investment-grade or publicly traded large cap tenants

Investment-grade or publicly traded large cap tenants represent tenants that are investment-grade rated or publicly traded companies with an average daily market capitalization greater than $10 billion for the twelve months ended June 30, 2022, as reported by Bloomberg Professional Services. Credit ratings from Moody’s Investors Service and S&P Global Ratings reflect credit ratings of the tenant’s parent entity, and there can be no assurance that a tenant’s parent entity will satisfy the tenant’s lease obligation upon such tenant’s default. We monitor the credit quality and related material changes of our tenants. Material changes that cause a tenant’s market capitalization to decrease below $10 billion, which are not immediately reflected in the twelve-month average, may result in their exclusion from this measure.

Investments

We hold investments in publicly traded companies and privately held entities primarily involved in the life science, 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.

Investments in real estate

The following table reconciles our investments in real estate as of June 30, 2022:


(In thousands)	Investments in Real Estate
Gross investments in real estate – North America	$	31,996,462
Less: accumulated depreciation – North America	(4,056,183)
Net investments in real estate – North America	27,940,279
Net investments in real estate – Asia	12,652
Investments in real estate	$	27,952,931


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Definitions and Reconciliations (continued)
June 30, 2022

The square footage presented in the table below includes RSF of buildings in operation as of June 30, 2022, primarily representing lease expirations at recently acquired properties that also have inherent future development or redevelopment opportunities and for which we have the intent to demolish or redevelop the existing property upon expiration of the existing in-place leases and commencement of future construction:


	Dev/ Redev	RSF of Lease Expirations Targeted for Development and Redevelopment
Property/Submarket		2022	2023	Thereafter		Total
Near-term projects:
40 Sylvan Road/Route 128	Redev	—	312,845	—		312,845
275 Grove Street/Route 128	Redev	48,793	—	111,458	(1)	160,251
840 Winter Street/Route 128	Redev	—	10,265	17,965		28,230
3825 Fabian Way/Greater Stanford	Redev	—	250,000	—		250,000
3301 Monte Villa Parkway/Bothell	Redev	50,552	—	—		50,552
Other/Texas	Redev	—	—	143,105	(1)	143,105
		99,345	573,110	272,528		944,983
Intermediate-term projects:
9444 Waples Street/Sorrento Mesa	Dev	23,789	—	4,746		28,535
		23,789	—	4,746		28,535
Future projects:
550 Arsenal Street/Cambridge/Inner Suburbs	Dev	—	—	260,867	(1)	260,867
380 and 420 E Street/Seaport Innovation District	Dev	—	—	195,506		195,506
Other/Greater Boston	Redev	—	—	167,549	(1)	167,549
1122 El Camino Real/South San Francisco	Dev	—	—	223,232		223,232
1150 El Camino Real/South San Francisco	Dev	—	—	431,940	(1)	431,940
3875 Fabian Way/Greater Stanford	Redev	—	—	228,000		228,000
960 Industrial Road/Greater Stanford	Dev	—	—	110,000		110,000
219 East 42nd Street/New York City	Dev	—	—	349,947		349,947
10975 and 10995 Torreyana Road/Torrey Pines	Dev	—	—	84,829		84,829
4161 Campus Point Court/University Town Center	Dev	—	159,884	—		159,884
10260 Campus Point Drive/University Town Center	Dev	—	109,164	—		109,164
Sequence District by Alexandria/Sorrento Mesa	Dev/Redev	—	—	689,938		689,938
4025 and 4045 Sorrento Valley Boulevard/Sorrento Valley	Dev	10,926	—	11,960	(1)	22,886
601 Dexter Avenue North/Lake Union	Dev	—	18,680	—		18,680
830 4th Avenue South/SoDo	Dev	—	—	42,380	(1)	42,380
Other/Seattle	Dev	—	92,205	10,232	(1)	102,437
		10,926	379,933	2,806,380		3,197,239
		134,060	953,043	3,083,654		4,170,757

(1)Includes vacant square footage as of June 30, 2022.

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.


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Definitions and Reconciliations (continued)
June 30, 2022

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 and impairments of real estate and non-real estate investments 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 operating RSF as of June 30, 2022:


	Operating RSF
Mega campus	27,046,236
Non-mega campus	14,037,293
Total	41,083,529

Mega campus RSF as a percentage of total operating property RSF	66	%

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.

Net debt and preferred stock to Adjusted EBITDA

Net debt and preferred stock to Adjusted EBITDA is a non-GAAP financial measure that we believe is useful to investors as a supplemental measure of evaluating our balance sheet leverage. Net debt and preferred stock is equal to the sum of total consolidated debt less cash, cash equivalents, and restricted cash, plus preferred stock outstanding as of the end of the period. Refer to the definition of Adjusted EBITDA and Adjusted EBITDA margin for further information on the calculation of Adjusted EBITDA.

The following table reconciles debt to net debt and preferred stock and computes the ratio to Adjusted EBITDA:


(Dollars in thousands)	6/30/22			3/31/22			12/31/21			9/30/21			6/30/21
Secured notes payable	$	24,986		$	208,910		$	205,198		$	198,758		$	227,984
Unsecured senior notes payable	10,096,462			10,094,337			8,316,678			8,314,851			8,313,025
Unsecured senior line of credit and commercial paper	149,958			—			269,990			749,978			299,990
Unamortized deferred financing costs	78,978			81,175			65,476			65,112			66,913
Cash and cash equivalents	(420,258)			(775,060)			(361,348)			(325,872)			(323,876)
Restricted cash	(97,404)			(95,106)			(53,879)			(42,182)			(33,697)
Preferred stock	—			—			—			—			—
Net debt and preferred stock	$	9,832,722		$	9,514,256		$	8,442,115		$	8,960,645		$	8,550,339

Adjusted EBITDA:
– quarter annualized	$	1,797,488		$	1,734,956		$	1,631,244		$	1,557,652		$	1,483,576
– trailing 12 months	$	1,680,335		$	1,601,857		$	1,517,838		$	1,442,929		$	1,371,586

Net debt and preferred stock to Adjusted EBITDA:
– quarter annualized	5.5		x	5.5		x	5.2		x	5.8		x	5.8		x
– trailing 12 months	5.9		x	5.9		x	5.6		x	6.2		x	6.2		x


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Definitions and Reconciliations (continued)
June 30, 2022

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				Six Months Ended
(Dollars in thousands)	6/30/22		6/30/21		6/30/22		6/30/21
Net income	$	309,382	$	404,520	$	191,990	$	430,053

Equity in earnings of unconsolidated real estate joint ventures	(213)		(2,609)		(433)		(6,146)
General and administrative expenses	43,397		37,880		84,328		71,876
Interest expense	24,257		35,158		53,697		71,625
Depreciation and amortization	242,078		190,052		482,737		370,965
Impairment of real estate	—		4,926		—		10,055
Loss on early extinguishment of debt	3,317		—		3,317		67,253
Gain on sales of real estate	(214,219)		—		(214,219)		(2,779)
Investment loss (income)	39,481		(304,263)		279,800		(305,277)
Net operating income	447,480		365,664		881,217		707,625
Straight-line rent revenue	(27,362)		(27,903)		(69,387)		(55,285)
Amortization of acquired below-market leases	(16,760)		(13,267)		(30,675)		(25,379)
Net operating income (cash basis)	$	403,358	$	324,494	$	781,155	$	626,961

Net operating income (cash basis) – annualized	$	1,613,432	$	1,297,976	$	1,562,310	$	1,253,922

Net operating income (from above)	$	447,480	$	365,664	$	881,217	$	707,625
Total revenues	$	643,764	$	509,619	$	1,258,829	$	989,468
Operating margin	70%		72%		70%		72%

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.

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.


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Definitions and Reconciliations (continued)
June 30, 2022

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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The following table reconciles the number of same properties to total properties for the six months ended June 30, 2022:


		Redevelopment – placed into
Development – under construction	Properties	service after January 1, 2021	Properties
5 and 9 Laboratory Drive	2	700 Quince Orchard Road	1
4 Davis Drive	1	3160 Porter Drive	1
201 Brookline Avenue	1	5505 Morehouse Drive	1
10055 Barnes Canyon Road	1	Other	1
15 Necco Street	1		4
751 Gateway Boulevard	1
325 Binney Street	1	Acquisitions after January 1, 2021	Properties
1150 Eastlake Avenue East	1	3301, 3303, 3305, 3307, 3420, and 3440 Hillview Avenue	6
10102 Hoyt Park Drive	1
9810 Darnestown Road	1	Sequence District by Alexandria	5
99 Coolidge Avenue	1	Alexandria Center® for Life Science – Fenway	1
500 North Beacon Street and 4 Kingsbury Avenue	2
		550 Arsenal Street	1
9808 Medical Center Drive	1	1501-1599 Industrial Road	6
6040 George Watts Hill Drive	1	One Investors Way	2
	16	2475 Hanover Street	1
Development – placed into		10975 and 10995 Torreyana Road	2
service after January 1, 2021	Properties	Pacific Technology Park	6
1165 Eastlake Avenue East	1	1122 and 1150 El Camino Real	2
201 Haskins Way	1	12 Davis Drive	1
825 and 835 Industrial Road	2	7360 Carroll Road	1
9950 Medical Center Drive	1	8505 Costa Verde Boulevard and 4260 Nobel Drive	2
3115 Merryfield Row	1
8 and 10 Davis Drive	2	225 and 235 Presidential Way	2
	8	104 TW Alexander Drive	4
Redevelopment – under construction	Properties	One Hampshire Street	1
30-02 48th Avenue	1	Intersection Campus	12
The Arsenal on the Charles	11	Other	48
2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive	4		103
		Unconsolidated real estate JVs	4
840 Winter Street	1	Properties held for sale	1
20400 Century Boulevard	1
9601 and 9603 Medical Center Drive	2	Total properties excluded from same properties	170
One Rogers Street	1
40, 50, and 60 Sylvan Road	3	Same properties	266
Alexandria Center® for Advanced Technologies – Monte Villa Parkway	6	Total properties in North America as of June 30, 2022	436

651 Gateway Boulevard	1
8800 Technology Forest Place	1
Other	2
	34


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Definitions and Reconciliations (continued)
June 30, 2022

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 revenue 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										Six Months Ended
(In thousands)	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21		6/30/22		6/30/21
Income from rentals	$	640,959	$	612,554	$	574,656	$	546,527	$	508,371	$	1,253,513	$	987,066
Rental revenues	(485,067)		(469,537)		(435,637)		(415,918)		(396,804)		(954,604)		(767,037)
Tenant recoveries	$	155,892	$	143,017	$	139,019	$	130,609	$	111,567	$	298,909	$	220,029

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.

Unencumbered net operating income as a percentage of total net operating income

Unencumbered net operating income as a percentage of total net operating income is a non-GAAP financial measure that we believe is useful to investors as a performance measure of the results of operations of our unencumbered real estate assets as it reflects those income and expense items that are incurred at the unencumbered property level. Unencumbered net operating income is derived from assets classified in continuing operations, which are not subject to any mortgage, deed of trust, lien, or other security interest, as of the period for which income is presented.

The following table summarizes unencumbered net operating income as a percentage of total net operating income:


	Three Months Ended
(Dollars in thousands)	6/30/22		3/31/22		12/31/21		9/30/21		6/30/21
Unencumbered net operating income	$	446,473	$	420,960	$	390,017	$	371,026	$	353,104
Encumbered net operating income	1,007		12,777		11,189		10,738		12,560
Total net operating income	$	447,480	$	433,737	$	401,206	$	381,764	$	365,664
Unencumbered net operating income as a percentage of total net operating income	100%		97%		97%		97%		97%

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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			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			63




Definitions and Reconciliations (continued)
June 30, 2022

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 equity sales agreements under the treasury stock method while the forward equity sales agreements are outstanding. As of June 30, 2022, we had Forward Agreements outstanding to sell an aggregate of 9.0 million 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:


	Three Months Ended					Six Months Ended
(In thousands)	6/30/22	3/31/22	12/31/21	9/30/21	6/30/21	6/30/22	6/30/21
Basic shares for earnings per share	161,412	158,198	153,464	150,854	145,825	159,814	141,596
Forward Agreements	—	—	843	707	233	—	300
Diluted shares for earnings per share	161,412	158,198	154,307	151,561	146,058	159,814	141,896

Basic shares for funds from operations per share and funds from operations per share, as adjusted	161,412	158,198	153,464	150,854	145,825	159,814	141,596
Forward Agreements	—	11	843	707	233	—	300
Diluted shares for funds from operations per share and funds from operations per share, as adjusted	161,412	158,209	154,307	151,561	146,058	159,814	141,896


			Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2022			64