Alexandria Real Estate Equities, Inc. · NYSE:ARE

Alexandria Real Estate Equities — Investor Day (December 2019)

170 slides from Alexandria Real Estate Equities's investor day presentation, Dec 3, 2019

Slide 1: Celebrating 25 Years of Disciplined Growth and Operational Excellence
Celebrating 25 Years of Disciplined Growth and Operational Excellence INVESTOR DAY | DECEMBER 3, 2019 | NYSE:ARE
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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
Slide 4: From Visionary First Mover to Recognized Leader in Life Science Cluster Development
Alexandria: From Visionary First Mover to Recognized Leader in Life Science Cluster Development Alexandria has the world-class brand and reputation in the niche that we created. ALEXANDRIA CENTER® FOR 50 & 60 BINNEY STREET 1655 & 1725 THIRD STREET MERCER MEGA BLOCK LIFE SCIENCE – NEW YORK CITY CAMBR
Slide 5: 1994 | $19M Series A
1994 | $19M Series A Acquired in 1994, 10933 North Torrey Pines Road was Alexandria’s first laboratory/office asset. This campus remains an important part of our asset base today. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved ©
Slide 6: 2019 | $24.3B Total Market Cap
2019 | $24.3B Total Market Cap 1 25 years later, Alexandria is the leader in developing thriving life science clusters that foster the innovation needed to advance human health by curing disease and improving nutrition. 1. As of September 30, 2019. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidentia
Slide 7: Clusters are geographic concentrations of interconnected companies
”Clusters are geographic concentrations of interconnected companies and institutions in a particular field. … Clusters affect competition in three broad ways: first, by increasing the productivity of companies based in the area; second, by driving the direction and pace of innovation, which underpin
Slide 8: Alexandria's Life Science Cluster Locations
Alexandria’s Life Science Cluster Locations 25 Years of Creating and Developing Thriving Clusters GREATER BOSTON SEA 6.5M RSF SAN FRANCISCO 7.8M RSF GB SF NYC NEW YORK CITY 1.3M RSF MD SAN DIEGO SD RT 27.3M TOTAL RSF 5.2M RSF SEATTLE 1.6M RSF 269 MARYLAND 3.0M RSF PROPERTIES IN RESEARCH TRIANGLE NOR
Slide 9: Best-in-Class, Mission-Driven Company
Alexandria: Best-in-Class, Mission-Driven Company Celebrating 25 Years of Disciplined Growth 1994 20193 $24.3B $19M Series A Capital Total Market Cap 4 Properties1 313K RSF1 269 Properties (Baa1/Stable) 19972 $155M IPO 15 Properties 27.3M RSF4 (BBB+/Stable) 1.5M RSF 1. As of December 31, 1994. 2. As
Slide 10: Total Shareholder Return Comparison
Alexandria’s Outstanding Performance (May 27, 19971–September 30, 2019) 1,618% 1,269% 1,051% 693% U.S. REIT Index 632% 597% FTSE Nareit Equity Total Shareholder 513% Office Index Return Comparison Russell 444% 2000 500 434% Source: Bloomberg. Assumes reinvestment of dividends. 1. Alexandria’s IPO pr
Slide 11: NAIOP 2019 Developer of the Year
Alexandria: NAIOP 2019 Developer of the Year People. Passion. Purpose. “The company has been strategic in its growth by locating in markets where the key building blocks for innovation thrive.… Alexandria’s commitment to its employees and to the communities where it does business is evident.” Jean K
Slide 12: Fourth Nareit Gold Investor CARE Award
Alexandria’s Fourth Nareit Gold Investor CARE Award People. Passion. Purpose. COMMUNICATIONS AND REPORTING EXCELLENCE Best-in-class transparency, quality, and efficiency of disclosures and reporting ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | Al
Slide 13: Operational Excellence Drives Superior Results
Alexandria’s Operational Excellence Drives Superior Results “Alexandria has achieved the three outputs that High-Quality Per-Share Growth From FFO, define a great company: NAV, and Dividends Superior Results, Strong Internal Growth Distinctive Impact, and Strong External Growth Lasting Endurance.” D
Slide 14: Alexandria's mission statement
Alexandria’s mission is to create clusters that ignite and accelerate the world’s leading innovators in their noble pursuit of advancing human health by curing disease and improving nutrition. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Righ
Slide 16: Enduring Intrinsic Value Flows From Our DNA
Alexandria’s Enduring Intrinsic Value Flows From Our DNA ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 17: Life-Changing Innovation
LIFE-CHANGING INNOVATION The mission-critical infrastructure Alexandria provides our tenants enables their best and brightest to create the medicines that can transform patient lives. “We all know people in our lives, either family members or friends, who suffer from diseases that scientists in our
Slide 18: Life-Changing Innovation: Tenants' Science
LIFE-CHANGING INNOVATION The cutting-edge science of Alexandria’s tenants is transforming patient lives. CLOSER TO A CURE NOVEL MODALITY PRECISION MEDICINE Triple combination therapy First siRNA therapeutic approval Second tissue-agnostic cancer approval Transformative medicine to treat First treatm
Slide 19: Long-Tenured Leadership
LONG-TENURED LEADERSHIP Alexandria’s highly experienced team, which upholds an idea-based meritocracy, is motivated by our ability to support groundbreaking scientific discoveries. “Alexandria has built a leadership culture infused with the personal humility to continually learn, combined with the p
Slide 20: Team-Oriented Culture
TEAM-ORIENTED CULTURE The dedicated Alexandria family works as a team and can be found at the center of all we do. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 21: Operational Excellence
OPERATIONAL EXCELLENCE Alexandria’s best-in-class team effectively and consistently executes our differentiated business strategy. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 22: Design Leadership
DESIGN LEADERSHIP Alexandria’s rigorous academic approach to the design of our buildings and campuses improves employee productivity, collaboration, and well-being. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 23: Sustainability and Wellness
SUSTAINABILITY AND WELLNESS Alexandria is making a lasting and positive impact through our commitment to environmental sustainability and occupant health and wellness. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 24: Philanthropy
PHILANTHROPY Alexandria is making a positive and lasting impact on the communities in which we live and work through fundraising, volunteerism, and corporate giving. Operation CARE By the Numbers, 2019 250+ Non-Profit Organizations Alexandria Has Supported 3,800 Employee Hours Volunteered $54K Emplo
Slide 25: Philanthropy: Fred's Team
PHILANTHROPY Alexandria is making a positive and lasting impact on the communities in which we live and work through fundraising, volunteerism, and corporate giving. $350K Funds Raised for Fred’s Team to Support the Mission-Critical Research at Memorial Sloan Kettering Cancer Center 59 Number of Our
Slide 26: Cluster Development: Four Critical Components
CLUSTER DEVELOPMENT In our unique and proven cluster model, Alexandria has identified four critical components for life science companies to succeed. LOCATION INNOVATION Best-in-class locations immediately Broad and diverse leading-edge adjacent to the world’s top academic life science and technolog
Slide 27: Cluster Development: Mission Bay, San Francisco
CLUSTER DEVELOPMENT To foster innovation and collaboration, Alexandria pursued our urban cluster campus strategy in Mission Bay, San Francisco (2004). ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 28: Cluster Development: New York City
CLUSTER DEVELOPMENT To foster innovation and collaboration, Alexandria pursued our urban cluster campus strategy in New York City (2005). ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 29: Cluster Development: Cambridge
CLUSTER DEVELOPMENT To foster innovation and collaboration, Alexandria pursued our urban cluster campus strategy in Cambridge (2006). ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 31: Sustainability and Climate Change Framework
Alexandria’s Sustainability and Climate Change Framework Positioning Alexandria for Long-Term Success Supporting and aligning with guidelines issued by the Taskforce on Climate-related Financial Disclosures (TCFD) METRICS RISK STRATEGY GOVERNANCE & TARGETS MANAGEMENT ALEXANDRIA REAL ESTATE EQUITIES,
Slide 32: Sustainability Mission
Alexandria’s sustainability mission is to make a positive and meaningful impact on the health, safety, and well-being of our tenants, stockholders, employees, and the communities in which we live and work. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribu
Slide 33: Sustainability Leadership Recognition and Awards
Alexandria’s Sustainability Leadership Recognition and Awards GRESB RESULTS NATIONAL NAIOP 2019 Developer of the Year SANDAG DIAMOND SAN DIEGO AWARDS FY 2019 iCommute Platinum Tier Recipient SEATTLE PUGET SOUND #1 BUSINESS JOURNAL WASHINGTON’S BEST SMALL WORKPLACES ALEXANDRIA REAL ESTATE EQUITIES, I
Slide 34: Tenant testimonial: Takeda
“Our new home with Alexandria reflects our shared willingness to embrace innovation, our care for the environment, and our strongly held belief that great work spaces attract and retain world-class talent and promote their health and productivity.” David Weitz Head of Takeda California and Global Re
Slide 35: Sustainability Goals Aligned With Innovative Tenants
Alexandria’s Sustainability Goals Are Well Aligned With Our Innovative Tenants KEY TENANTS WITH CARBON-REDUCTION GOALS Facebook, Inc. 37% Average Reduction Goal 2025 Average Target Year ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Rese
Slide 36: 2025 Sustainability Goals
Alexandria’s 2025 Sustainability Goals1 Further Reducing Our Environmental Impact 2015–2018 Progress3 2025 Goals2 Carbon (MTCO2e) 14.5% 30% TOTAL CARBON POLLUTION Pollution REDUCTION REDUCED BY 14.5% Energy SINCE 2015 (kWh) 15.3% 25% Consumption REDUCTION Reflecting an Average Annual Pace of 4.8% —
Slide 37: Commitment to Green Building
Alexandria’s Longstanding Commitment to and Leadership in Green Building LEED Milestones Green Bond Issuances 2007 Built one of the world’s first LEED- Issued on June 21, 2018, and March 21, 2019 certified laboratories for Core & Shell Total $1 billion of senior unsecured notes 2011 Received Califor
Slide 38: Collaborative Campuses Promote Health, Wellness, and Productivity
Alexandria’s Collaborative Campuses Promote Health, Wellness, and Productivity #1 Company Globally in 2018 Health & Well-Being Module Inaugural Best in Building Health Company Award First WELL-Certified Laboratory Space in the World HEALTHY BUILDING HEALTHY BUILDING CERTIFICATIONS GOAL 37 50 PROJECT
Slide 39: Case Study: Net Zero Energy
Advancing Alexandria’s Leadership in Sustainability Case Study: Net Zero Energy Alexandria is pursuing net zero energy certification at the amenities building of our Gateway Boulevard campus in our South San Francisco submarket. Optimized Building Envelope | High Performance Systems | Neutralizing a
Slide 40: Tackling Embodied Carbon
Advancing Alexandria’s Leadership by Tackling Embodied Carbon First REIT to Use Embodied Carbon in Construction Calculator (EC3) Tool 51% 49% Alexandria will target embodied carbon reductions in construction projects going forward Embodied Carbon Operational Carbon TOTAL CARBON EMISSIONS OF GLOBAL N
Slide 41: Framework for Resilience
Alexandria’s Framework for Resilience ASSESSING EXTENT TO IDENTIFYING ADDITIONAL WHICH MITIGATIONS MITIGATIONS TO INTEGRATE ARE IN PLACE INTO LONG-TERM PLANNING ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 42: Building Resilience: Coastal Flooding and Sea Level Rise
Building Resilience: Coastal Flooding and Sea Level Rise NEW YORK CITY East and West Towers Maintained critical operations during Superstorm Sandy Enhanced flood wall Implementing further upgrades for flood mitigation North Tower Enhanced flood wall Building flood doors/barriers to install around cr
Slide 43: Building Resilience: Flooding From Heavy Rain
Building Resilience: Flooding From Heavy Rain CAMBRIDGE Binney Street Corridor First floors and parking garage entrances above the 2070 100-year floodplain elevation Blue roof to retain stormwater before discharging to reduce runoff New stormwater trunkline to help reduce overflows into the Charles
Slide 44: Building Resilience: Wildfire and Drought
Building Resilience: Wildfire and Drought SAN DIEGO AND SAN FRANCISCO BAY AREA Wildfire planning Usage of recycled water Incorporating best fire protection practices into Connecting to recycled water landscape design and maintenance infrastructure for cooling towers and irrigation Incorporating dist
Slide 46: Innovation Is Key to Developing New Therapies and Cures
Innovation Is Key to Developing New Therapies and Cures to Solve Future Healthcare Challenges The Transformative Work of Alexandria’s Tenants and Investment Portfolio Companies Is Critical and Holds the Potential to Positively Impact Society ~10K KNOWN DISEASES ONLY 500 CURRENTLY ADDRESSABLE WITH TR
Slide 47: Life Science Industry Is a Significant Driver of the Economy
The Life Science Industry Is a Significant Driver of the Economy and Innovation 6,000+ $2.9T+ 810K+ COMPANIES REVENUE EMPLOYEES 1 2 3 $250B+ 15,000+ 360+ R&D SPEND U.S. HEALTH & CHEMISTRY NEW THERAPIES APPROVED 2 PATENTS GRANTED ANNUALLY 4 OVER THE LAST 10 YEARS 5 1. Sources: BCIQ database, Evaluate
Slide 48: Fundamental Drivers Impacting Life Science Demand
5 Fundamental Drivers Impacting Life Science Demand Government Funding Medical Research Philanthropy FDA Regulatory Environment Venture and Public Market Capital Flows Commercial R&D Funding ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights
Slide 49: Significant Funding From Diverse Sources Drives Innovation
Significant Funding From Diverse Sources Drives Life Science Innovation $214B $350B+ Research & Development $62B $41B $44B Funding for Life Science U.S. Medical Research U.S. Government U.S. Life Science Global Public Philanthropy Funding Venture Capital and Biopharma (NIH, NSF, and ASPR) Public Mar
Slide 50: Strong Bipartisan Support Accelerates Biomedical Research
Strong Bipartisan Support Accelerates ALEXANDRIA TENANTS RECEIVE Biomedical Research in Alexandria’s Clusters SUBSTANTIAL NIH FUNDING2 FY2019 NIH BUDGET $39.1B +30% Increase in NIH Funding Over the Last 5 Years1 40% of extramural funding was granted within Alexandria’s clusters Source: National Inst
Slide 51: Strong Philanthropic Support Helps Drive Innovation
Strong Philanthropic Support Helps Drive Innovation for Patients $40.8B FROM HEALTH-RELATED INNOVATIVE PHILANTHROPIC PARTNERSHIP CHARITABLE GIVING IN 2018 4 $40.8B FDA approved therapies, developed in partnership $34.8B with the Cystic Fibrosis Foundation, represent $28.2B treatment options for $24.
Slide 53: Cash Flows, Market Fundamentals, Internal Growth Momentum
ALEXANDRIA’S HIGH-QUALITY, INCREASING CASH FLOWS ALEXANDRIA’S MARKET FUNDAMENTALS ALEXANDRIA’S INTERNAL GROWTH MOMENTUM ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 54: High-Quality, Increasing Cash Flows
Alexandria’s High-Quality, Increasing Cash Flows STRONG STRONG EXTERNAL INTERNAL GROWTH THROUGH GROWTH VALUE-CREATION PIPELINE Solid Real Estate & Life Science Fundamentals Class A Properties A REIT Industry–Leading Tenant Roster Favorable Lease Structure Operational Excellence Lower Leasing Costs &
Slide 55: Consistent Growth in Cash Net Operating Income
Alexandria’s Disciplined Execution of Unique Business Strategy Drives Consistent Growth in Cash Net Operating Income ($ in Millions) $831 $676 $586 $526 $459 $411 $380 $353 $307 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Projected NET OPERATING INCOME (CASH BASIS)1 1. Refer to definitions in
Slide 56: High-Quality Cash Flows
Alexandria’s High-Quality Cash Flows Consistent and Predictable Performance Investment-Grade Top 20 Tenants That Are Class A or Publicly Traded Investment-Grade or Properties in Large Cap Tenants Publicly Traded Large Cap AAA Locations Represents annual rental revenue from investment-grade or public
Slide 57: Top Tenants by Annual Rental Revenue
Alexandria’s High-Quality Cash Flows Top 20 Tenants by Annual Rental Revenue1 Facebook, Inc. 85% of TOP 20 TENANTS are investment- Largest tenant is NO MORE THAN 3.3% grade or publicly traded large cap1 of total annual rental revenue1 1. Based on aggregate annual rental revenue as of September 30, 2
Slide 58: Efficient Execution Drives Strong EBITDA Margins
Alexandria’s Efficient Execution of Unique and Differentiated Business Strategy Drives Strong EBITDA Margins 69% ADJUSTED EBITDA MARGIN 64% 60% 60% 59% 58% 58% 57% 57% 56% 55% 55% 54% 53% 53% 52% 47% 46% 46% 40% ARE DEI CUZ HIW KRC BXP DEA EQC OPI CIO CXP PGRE HPP BDN SLG PDM FSP ESRT OFC CMCT GENER
Slide 59: Favorable Lease Structure
Alexandria’s Favorable Lease Structure Consistent and Predictable Performance Are Triple Net Contain Annual Base Rent Escalations Require Tenants to Pay for Capital Expenditures Percentages calculated based on RSF as of September 30, 2019. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Pro
Slide 60: Enduring Real Estate Asset Base
Alexandria’s Enduring Real Estate Asset Base Lower Capital Expenditure Burden = Higher Intrinsic Value COMMODITY INVESTMENT OFFICE Initial building infrastructure HIGHER LOWER DEMOLISH Re-leasing/renewals LIMITED AND REBUILD z Total over multiple generations LOWER HIGHER BURDEN BURDEN Capital expend
Slide 61: Low Leasing Costs and Maintenance Capital Expenditures
Alexandria’s Low Leasing Costs and Maintenance Capital Expenditures Superior Long-Term Return on Investment 37% 31% 29% 29% 29% 29% 30% 28% 26% 26% 27% 27% 28% 28% 28% 25% 25% 21% 15% ARE AAT DEI BXP KRC WRE PGRE SLG OFC HPP CLI EQC ESRT VNO CUZ BDN HIW JBGS PDM Alexandria1 Office REITs2 MAINTENANCE
Slide 62: Greater Boston's Solid Market Fundamentals
Greater Boston’s Solid Market Fundamentals East Cambridge Cambridge and Urban Submarkets LAB MARKET VACANCY LIFE SCIENCE DEMAND 0.6% 3.1M RSF Source: CBRE. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 63: San Francisco's Solid Market Fundamentals
San Francisco’s Solid Market Fundamentals LAB MARKET VACANCY LIFE SCIENCE DEMAND 0.9% 3.0M RSF Source: Newmark Cornish & Carey. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 64: New York City's Solid Market Fundamentals
New York City’s Solid Market Fundamentals LAB MARKET VACANCY LIFE SCIENCE DEMAND 2.7% 416K RSF Source: Cushman & Wakefield. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 65: San Diego's Solid Market Fundamentals
San Diego’s Solid Market Fundamentals LAB MARKET VACANCY LIFE SCIENCE DEMAND 5.8% 2.7M RSF Source: Cushman & Wakefield. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 66: Seattle's Solid Market Fundamentals
Seattle’s Solid Market Fundamentals LAB MARKET VACANCY1 LIFE SCIENCE DEMAND2 1. Source: CBRE. 1.5% 498K RSF 2. Source: Newmark Knight Frank. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 67: Maryland's Solid Market Fundamentals
Maryland’s Solid Market Fundamentals LAB MARKET VACANCY1 LIFE SCIENCE DEMAND2 4.8% 1. Source: Internal research. 222K RSF 2. Source: Scheer Partners. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 68: Research Triangle's Solid Market Fundamentals
Research Triangle’s Solid Market Fundamentals LAB MARKET VACANCY1 LIFE SCIENCE DEMAND2 11.4% 1. Source: Internal research. 662K RSF 2. Source: Davis Moore. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 69: Strong Same Property Cash NOI Growth
Alexandria’s Strong Same Property Cash Net Operating Income Growth Consistent Outperformance of Office REITs 9% 8% 7% 6% 6% 5% 5% 4% 4% 2% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 3Q19 Alexandria Office REIT Average1 SAME PROPERTY NET OPERATING INCOME GROWTH (CASH BASIS) Refer to appendix. 1
Slide 70: Same Property Cash NOI Growth Illustration
Alexandria’s Strong Same Property Cash Net Operating Income Growth An Illustration of Alexandria’s Consistent Internal Growth 1–3% Rental Rate Growth From Leasing Activity1 10-YEAR HISTORICAL 3% AVERAGE2 Contractual Annual Rent Escalation Reflecting Steady Occupancy Averaging 96%3 Over the Last 10 Y
Slide 71: Strong Historical Leasing Volume
Alexandria’s Strong Historical Leasing Volume Strong Tenant Demand Drives Robust Leasing Volume (RSF in Millions) 5.0 4.7 4.6 4.4 3.4 1 4.1x 2.8x 4.6x 3.7x 3.6x AVERAGE HISTORICAL LEASING ACTIVITY IN EXCESS OF EXPIRATIONS, 2015 TO YTD 3Q19 ANNUALIZED 1.2 1.2 1.0 1.3 1.2 2015 2016 2017 2018 YTD 3Q19
Slide 72: Strong Historical Rental Rate Growth
Alexandria’s Strong Historical Rental Rate Growth Strong Real Estate and Life Science Industry Fundamentals 30.6% 25.1% 24.1% 17.1% 7.5% ALEXANDRIA ALEXANDRIA 10-YEAR 10-YEAR AVERAGE1 16.2% AVERAGE1 14.1% 12.7% vs. vs. 10.8% 4.5% OFFICE REIT OFFICE REIT 10-YEAR 10-YEAR AVERAGE2 AVERAGE2 2017 2018 YT
Slide 73: Steady Occupancy
Alexandria’s Steady Occupancy Consistent Outperformance of Office REITs 97% 97% 97% 97% 97% 97% 96% 95% 95% 94% 10-YEAR OCCUPANCY AVERAGE1 2010 2011 2012 2013 2014 2015 2016 2017 2018 3Q19 TENANT RETENTION RATE2 Alexandria Office REIT Average OCCUPANCY Sources: Office REIT average composition per FT
Slide 74: 2020 Contractual Lease Expirations
2020 CONTRACTUAL LEASE EXPIRATIONS ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 75: No Significant Contractual Lease Expirations in 2020: Top 10
Alexandria Has No Significant Contractual Lease Expirations in 2020 Top 10 Lease Expirations1 RSF ANNUAL RENTAL REMAINING REVENUE NEGOTIATING/ TARGETED FOR EXPIRING PROPERTY | MARKET | SUBMARKET EXPIRATION RSF (PER RSF)2 LEASED ANTICIPATING REDEVELOPMENT LEASES 7000 Shoreline Court San Francisco | S
Slide 76: Contractual Lease Expirations in 2020
Alexandria’s Contractual Lease Expirations in 2020 RSF of Expiring Leases1 NEGOTIATING/ TARGETED FOR REMAINING ANNUAL RENTAL MARKETS LEASED ANTICIPATING REDEVELOPMENT EXPIRING LEASES TOTAL REVENUE (PER RSF)2 Greater Boston 193,612 96,978 — 211,793 502,383 $ 49.26 San Francisco 69,786 10,781 — 203,23
Slide 78: External Growth: Strategically Creating Value
External Growth: Strategically Creating Value VALUE-ADDED Developments & Acquisitions Redevelopments • Development/redevelopment opportunities New, highly leased, creative, and innovative Class A properties • Near-term lease-up • Below-market rental rates ALEXANDRIA REAL ESTATE EQUITIES, INC. | Conf
Slide 79: Strategic Value-Added Acquisitions
STRATEGIC VALUE-ADDED ACQUISITIONS ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 80: Arsenal on the Charles, Cambridge
PURCHASE PRICE $526M DATE OF MID-DECEMBER PURCHASE 2019 OPERATING OCCUPANCY 82% OPERATING RSF 682K REDEVELOPMENT RSF 153K FUTURE DEVELOPMENT RSF 200K ARSENAL ON THE CHARLES | CAMBRIDGE/INNER SUBURBS | 1,035,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or
Slide 81: 3825-3875 Fabian Way, Greater Stanford
PURCHASE PRICE $291M DATE OF MID-DECEMBER PURCHASE 2019 OPERATING OCCUPANCY 100% 478K OPERATING RSF WITH VALUE-CREATION POTENTIAL 3825-3875 FABIAN WAY | GREATER STANFORD | 478,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserv
Slide 82: San Diego Technology Center
PURCHASE PRICE $115M OWNERSHIP INTEREST 50% DATE OF PURCHASE 10/30/19 OPERATING OCCUPANCY 71% OPERATING RSF 598K REDEVELOPMENT RSF 720K SAN DIEGO TECHNOLOGY CENTER | SORRENTO MESA | 1,318,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All R
Slide 84: Mercer Mega Block, Lake Union
PURCHASE PRICE $143M DATE OF PURCHASE 2020 800K FUTURE DEVELOPMENT RSF MERCER MEGA BLOCK | LAKE UNION | 800,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 85: 701 Dexter Avenue North, Lake Union
701 DEXTER AVENUE NORTH | LAKE UNION | 217,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 86: Shady Grove Life Science Cluster
PURCHASE PRICE $25M DATE OF PURCHASE 10/31/19 435K FUTURE DEVELOPMENT RSF SHADY GROVE LIFE SCIENCE CLUSTER ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 87: Value-Added Developments & Redevelopments
VALUE-ADDED DEVELOPMENTS & REDEVELOPMENTS ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 88: Development and Redevelopment Strategy
Alexandria’s Development and Redevelopment Strategy STRATEGY DISCIPLINED OPERATIONAL FUNDING EXCELLENCE • Pipeline that provides external • Invest cash flows from operating • Disciplined underwriting growth visibility activities after dividends • Highly leased at delivery • Optionality to address de
Slide 89: Successful Ground-Up Development of New Class A Properties
Alexandria’s Successful Ground-Up Development of New Class A Properties Leased to High-Quality Tenants Facebook, Inc. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 90: Strong Execution: Leased at Delivery
Alexandria’s Strong Execution LEASED AT DELIVERY 8.5M RSF Commenced Since January 2009 1 As of September 30, 2019. 1. Includes developments commenced since January 2009. Excludes projects in process that have not yet delivered. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | D
Slide 92: 325 Binney Street, Cambridge
GREATER BOSTON Key 2020 and Intermediate Value-Creation Pipeline Projects 325 BINNEY STREET | CAMBRIDGE | 208,965 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 93: Seaport Innovation District Cluster
GREATER BOSTON Key 2020 and Intermediate Value-Creation Pipeline Projects SEAPORT INNOVATION DISTRICT CLUSTER ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 94: 15 Necco Street, Seaport
GREATER BOSTON Key 2020 and Intermediate Value-Creation Pipeline Projects 15 NECCO STREET | SEAPORT INNOVATION DISTRICT | 293,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 95: 99 A Street, Seaport
GREATER BOSTON Key 2020 and Intermediate Value-Creation Pipeline Projects 99 A STREET | SEAPORT INNOVATION DISTRICT | 235,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 96: 215 Presidential Way, Route 128
GREATER BOSTON Key 2020 and Intermediate Value-Creation Pipeline Projects 215 PRESIDENTIAL WAY | ROUTE 128 | 112,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 98: 201 Haskins Way, South San Francisco
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects 201 HASKINS WAY | SOUTH SAN FRANCISCO | 315,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 99: Alexandria District for Science and Technology
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects ALEXANDRIA DISTRICT FOR SCIENCE AND TECHNOLOGY | GREATER STANFORD | 526,178 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 100: 3160 Porter Drive, Greater Stanford
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects 3160 PORTER DRIVE | GREATER STANFORD | 92,147 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 101: 88 Bluxome Street, Mission Bay/SoMa
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects 88 BLUXOME STREET | MISSION BAY/SOMA | 1,070,925 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 102: 505 Brannan Street, Phase II
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects 505 BRANNAN STREET, PHASE II | MISSION BAY/SOMA | 165,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 103: 751 Gateway Boulevard, South San Francisco
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects 751 GATEWAY BOULEVARD | SOUTH SAN FRANCISCO | 215,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 104: 960 Industrial Road, Greater Stanford
SAN FRANCISCO Key 2020 and Intermediate Value-Creation Pipeline Projects 960 INDUSTRIAL ROAD | GREATER STANFORD | 587,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 106: Alexandria Center – Long Island City
NEW YORK CITY Key 2020 and Intermediate Value-Creation Pipeline Projects ALEXANDRIA CENTER® – LONG ISLAND CITY | NEW YORK CITY | 176,759 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 107: Alexandria Center for Life Science – NYC
NEW YORK CITY Key 2020 and Intermediate Value-Creation Pipeline Projects ALEXANDRIA CENTER® FOR LIFE SCIENCE – NYC | NEW YORK CITY | 550,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 108: 47-50 30th Street, New York City
NEW YORK CITY Key 2020 and Intermediate Value-Creation Pipeline Projects 47-50 30TH STREET | NEW YORK CITY | 135,938 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 110: 3115 Merryfield Row, Torrey Pines
SAN DIEGO Key 2020 and Intermediate Value-Creation Pipeline Projects 3115 MERRYFIELD ROW | TORREY PINES | 125,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 111: Campus Pointe by Alexandria
SAN DIEGO Key 2020 and Intermediate Value-Creation Pipeline Projects CAMPUS POINTE BY ALEXANDRIA | UNIVERSITY TOWN CENTER | 389,102 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 112: Townsgate by Alexandria, Del Mar Heights
SAN DIEGO Key 2020 and Intermediate Value-Creation Pipeline Projects TOWNSGATE BY ALEXANDRIA | DEL MAR HEIGHTS | 185,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 114: 188 East Blaine Street, Lake Union
SEATTLE Key 2020 and Intermediate Value-Creation Pipeline Projects 188 EAST BLAINE STREET | LAKE UNION | 198,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 115: 1165 Eastlake Avenue East, Lake Union
SEATTLE Key 2020 and Intermediate Value-Creation Pipeline Projects 1165 EASTLAKE AVENUE EAST | LAKE UNION | 100,086 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 116: 1150 Eastlake Avenue East, Lake Union
SEATTLE Key 2020 and Intermediate Value-Creation Pipeline Projects 1150 EASTLAKE AVENUE EAST | LAKE UNION | 260,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 118: 9800 Medical Center Drive, Rockville
MARYLAND Key 2020 and Intermediate Value-Creation Pipeline Projects 9800 MEDICAL CENTER DRIVE | ROCKVILLE | 176,832 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 119: 9950 Medical Center Drive, Rockville
MARYLAND Key 2020 and Intermediate Value-Creation Pipeline Projects 9950 MEDICAL CENTER DRIVE | ROCKVILLE | 84,264 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 121: Alexandria Center for AgTech, Phase II
RESEARCH TRIANGLE Key 2020 and Intermediate Value-Creation Pipeline Projects ALEXANDRIA CENTER® FOR AGTECH, PHASE II | RESEARCH TRIANGLE | 160,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 122: 8 Davis Drive, Research Triangle
RESEARCH TRIANGLE Key 2020 and Intermediate Value-Creation Pipeline Projects 8 DAVIS DRIVE | RESEARCH TRIANGLE | 150,000 RSF ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 123: Strong and Flexible Balance Sheet
Strong and Flexible Balance Sheet ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019 123
Slide 124: Financial Strategy
Alexandria’s Financial Strategy Prudent Management of Balance Sheet and Baa1 Continuous Improvement in Credit Profile STABLE Improve CREDIT PROFILE and LONG-TERM COST OF CAPITAL Maintain SOLID CREDIT METRICS Maintain significant balance sheet LIQUIDITY BBB+ Maintain prudent LADDERING OF DEBT MATURIT
Slide 125: Long-Term Commitment to Credit Enhancements
Alexandria’s Long-Term Commitment to Credit Enhancements S&P/Moody’s RATING S&P/Moody’s UPGRADE A- / A3 UPGRADE S&P Moody’s BBB to NEAR- A- / A3 TERM Baa2 to BBB+ GOAL UPGRADE Baa1 S&P BBB- to BBB+ / Baa1 SEPT FEB MAR DEC INITIAL RATINGS BBB 2018 2019 2019 2019 S&P/Moody’s BBB- / FEB First ARE Very
Slide 126: Commitment to Enhance Credit Profile
Alexandria’s Commitment to Enhance Credit Profile Our Credit Spread Trending Toward A3 170 160 150 140 Baa1 G-Spread 130 120 ARE 110 A3 100 1/1/19 2/1/19 3/1/19 4/1/19 5/1/19 6/1/19 7/1/19 8/1/19 9/1/19 9/30/19 A3 ARE Baa1 G-SPREAD 2019 TREND: ARE VERSUS BAA1 AND A3 REIT BONDS Source: Bloomberg. ARE
Slide 127: Strong and Flexible Balance Sheet
Alexandria’s Strong and Flexible Balance Sheet Weighted-Average Liquidity1 Debt Maturity1 10.7years $3.5B Net Debt and Preferred Stock Fixed-Charge to Adjusted EBITDA2 Coverage Ratio2 ≤5.3x >4.0x 1. As of September 30, 2019. 2. Represents our 4Q19 annualized guidance range for net debt and preferred
Slide 128: Conservative Financial Strategy
Alexandria’s Conservative Financial Strategy Leverage on Track to Be ≤5.3x 7.1x 6.2x 6.2x 6.3x 6.4x ≤5.3x 5.6x 5.7x 4.9x HIW ARE¹ KRC HPP VTR PEAK BXP DEI PGRE Alexandria Other REITs NET DEBT AND PREFERRED STOCK TO ADJUSTED EBITDA2 — 3Q19 ANNUALIZED 1. Represents our 4Q19 annualized guidance range f
Slide 129: Disciplined Management of Value-Creation Pipeline
Alexandria’s Disciplined Management of Value-Creation Pipeline Value-Creation Pipeline as a Percentage of Gross Investments in Real Estate ACTIVE CONSTRUCTION INCOME-PRODUCING/ PROJECTS POTENTIAL CASH FLOWS/ LAND With Initial Delivery in 2019 Through 2020 COVERED LAND PLAY1 5% 5% 2% 67% LEASED As of
Slide 130: Prudent Laddering of Debt Maturities at Beginning of 2019
Alexandria’s Prudent Laddering of Debt Maturities at Beginning of 2019 Weighted-Average Remaining Term of 5.9 Years ($ in Millions) $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidenti
Slide 131: Strategic 2019 Debt Issuances/Refinancings
Alexandria’s Strategic 2019 Debt Issuances/Refinancings Opportunistic Refinancings Extend Weighted-Average Maturity by 5 Years Amount Rate 1 Term2 (in Years) $2.7B BONDS ISSUED 3.8% 17.4 $2.0B 3.9% 2.7 SECURED NOTES AND UNSECURED LOANS REFINANCED 3 1. Represents the weighted-average interest rate as
Slide 132: Prudent Laddering of Debt Maturities
Alexandria’s Prudent Laddering of Debt Maturities September 30, 2019 ($ in Millions) Weighted-Average $1,800 Remaining Term $1,600 (in Years) $1,400 $1,200 $1,177 10.7 $1,000 No maturities $750 $800 $678 $700 $700 until 2023 $605 $600 $600 $425 $450 $350 $400 $300 $200 $0 2019 2020 2021 2022 2023 20
Slide 133: Weighted-Average Remaining Term
Alexandria’s Weighted-Average Remaining Term DEBT LEASES 10.7 YEARS > 8.3 YEARS As of September 30, 2019. ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2019
Slide 134: Limited Exposure to LIBOR Transition
Alexandria’s Limited Exposure to LIBOR Transition Minimal Variable-Rate Debt 4Q19 PROJECTED Unsecured Senior Line of Credit/Commercial Paper Minimal Unsecured Senior Term Loan None Secured Construction Loans Minimal ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy o
Slide 135: Commitment to Long-Term Capital to Fund Growth
Alexandria’s Commitment to Long-Term Capital to Fund Growth Disciplined and Thoughtful Funding Strategy With Attractive Returns on Investment Invest CASH FLOWS FROM SIGNIFICANT INCREASE Reinvest proceeds from OPERATING ACTIVITIES IN EBITDA provides capacity STRATEGIC REAL ESTATE after dividends to d
Slide 136: Disciplined Funding Strategy
Alexandria’s Disciplined Funding Strategy Increasing Cash Flows From Operating Activities After Dividends Available for Reinvestment at Attractive Yields $220 83% $120 2013 2020 Projected¹ NET CASH PROVIDED BY OPERATING ACTIVITIES AFTER DIVIDENDS2 1. Represents the midpoint of our 2020 guidance rang
Slide 137: Disciplined Approach to Funding Growth at Attractive Rates
Alexandria’s Disciplined Approach to Funding Growth at Attractive Rates Illustration of Embedded EBITDA Growth to Debt-Fund Construction on a Leverage-Neutral Basis $2.0B X 6.7% X 5.2x = $700M POTENTIAL FUTURE CIP1 YIELD1,2 4Q20 DEBT FUNDING ON A LEVERAGE-NEUTRAL BASIS LEVERAGE3 1. As of September 3
Slide 138: Commitment to Permanent Long-Term Funding
Alexandria’s Commitment to Permanent Long-Term Funding Minimal Outstanding on Unsecured Senior Line of Credit ($ in Millions) $2,200¹ $2,200¹ $1,650¹ SIGNIFICANT AVAILABILITY $208 <$200 $50 MINIMAL OUTSTANDING 12/31/17 12/31/18 12/31/19 Projected² Remaining amounts available for borrowing under Outs
Slide 139: Disciplined and Thoughtful Approach to Funding Growth
Alexandria’s Disciplined and Thoughtful Approach to Funding Growth at Attractive Returns Five-Year Average 2015–20191 ($ in Millions) Net Cash Provided by Operating Activities After Dividends $170 2 Long-Term Debt (Significant Growth in EBITDA) $700 3 Asset Sales (Including Joint Ventures) $400 Comm
Slide 140: New Commercial Paper (CP) Program
Alexandria’s New Commercial Paper (CP) Program Disciplined Strategy for Funding Growth With Long-Term Debt • CP program ($750M) is fully backstopped by and is modest relative to our unsecured senior line of credit ($2.2B). • CP is expected to replace line of credit borrowing and will primarily be us
Slide 142: 2020 Investment Thesis
Alexandria’s 2020 Investment Thesis Disciplined Strategy and Operational Excellence Drive High-Quality Results DISCIPLINED HIGH- STRATEGY QUALITY PER-SHARE GROWTH OPERATIONAL FFO EXCELLENCE NAV Dividends ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute
Slide 143: Best-in-Class, Mission-Driven S&P 500 REIT
Alexandria’s 2020 Investment Thesis Best-in-Class, Mission-Driven S&P 500 REIT STRATEGY & OPERATIONAL EXCELLENCE STRONG DEMAND FOR UNIQUE UNDERWRITING EXPERTISE SEASONED MANAGEMENT TEAM ALEXANDRIA’S CLASS A PROPERTIES that enables the selection and with deep industry expertise, in AAA urban innovati
Slide 144: 2020 Guidance for EPS and FFO Per Share
Alexandria’s 2020 Guidance for Earnings Per Share and Funds From Operations Per Share1 EARNINGS PER SHARE2 $2.17 to $2.37 $2.27 Midpoint FUNDS FROM OPERATIONS PER SHARE2 $7.28 to $7.48 $7.38 Midpoint See detailed reconciliation in the appendix. 1. Attributable to Alexandria’s common stockholders – d
Slide 145: Strong Funds From Operations Per-Share Growth
Alexandria’s Strong Funds From Operations Per-Share Growth Consistent Execution and Growth 1 +6% +5% $7.38 +10% $6.96 68% +9% $6.60 +5% $6.02 +9% +9% $5.25 $5.51 $4.80 FUNDS FROM OPERATIONS PER-SHARE GROWTH SINCE 20131 2014 2015 2016 2017 2018 2019 2020 Projected² Projected³ FUNDS FROM OPERATIONS PE
Slide 146: Consistent Execution and Growth
Alexandria’s Consistent Execution and Growth $1.75 $1.71 $1.73 $1.64 $1.66 $1.68 $1.62 $1.53 $1.48 $1.50 $1.51 $1.39 $1.42 $1.31 $1.33 $1.33 $1.34 $1.36 $1.28 $1.21 $1.23 $1.16 $1.17 $1.19 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2
Slide 147: Strong Growth in Net Asset Value Per Share
Alexandria’s Strong Growth in Net Asset Value Per Share $147 $138 $126 $110 7% $100 $71 $87 10 2013 2014 2015 2016 2017 2018 3Q19 NET ASSET VALUE PER SHARE1 1. Sources: Based on average net asset value per share estimates at the end of each period presented from Bank of America Merrill Lynch, Barcla
Slide 148: Continued Strong Same Property Cash NOI Growth
Alexandria’s Continued Strong Same Property Cash Net Operating Income Growth Consistent Outperformance of Other Real Estate Asset Types 2020 PROJECTED SAME PROPERTY NET OPERATING INCOME GROWTH BY REIT ASSET TYPE1 (CASH BASIS) 6.0% 4.8% 3.6% 3.3% 2.6% 2.0% 1.7% 1.3% 1.0% ARE² Industrial Office Apartm
Slide 149: Continued Strong Rental Rate Growth
Alexandria’s Continued Strong Rental Rate Growth RENTAL RATE GROWTH1 RENTAL RATE GROWTH1 (CASH BASIS) 29.5% 29.5% 25.1% 24.1% 15.5% 15.5% 14.1% 12.7% 2017 2018 2019 2020 2017 2018 2019 2020 Projected² Projected³ Projected² Projected³ 2020 GUIDANCE RANGES FOR RENTAL RATE GROWTH1 28.0% to 31.0% 14.0%
Slide 150: Strong Occupancy Versus Other Real Estate Asset Types
Alexandria’s Strong Occupancy Versus Other Real Estate Asset Types 2020 PROJECTED OCCUPANCY PERCENTAGE BY REIT ASSET TYPE1 97.0% 95.0% 92.9% 92.4% 90.9% ARE² Apartment Strip Center Mall Office GUIDANCE RANGE FOR OCCUPANCY PERCENTAGE AS OF DECEMBER 31, 2020 96.7% to 97.3% 1. Source: Green Street Advi
Slide 151: Efficient Execution of Unique Business Strategy
Alexandria’s Efficient Execution of Unique Business Strategy ADJUSTED EBITDA MARGIN 69% 64% 60% 60% 59% 58% 58% 57% 57% 56% 55% 55% 54% 53% 53% 52% 47% 46% 46% 40% ARE DEI HIW CUZ KRC BXP DEA EQC OPI CIO CXP PGRE HPP BDN SLG PDM FSP ESRT OFC CMCT GENERAL AND ADMINISTRATIVE EXPENSES AS A PERCENTAGE O
Slide 152: 2020 Guidance for Straight-Line Rent and Interest Expense
Alexandria’s 2020 Guidance for Straight-Line Rent Revenue and Interest Expense ($ in Millions) STRAIGHT-LINE RENT REVENUE1 $113 to $123 INTEREST EXPENSE1 CAPITALIZED INTEREST INTEREST EXPENSE $108 to $118 $169 to $179 1. Represents our 2020 guidance ranges for straight-line rent revenue and interest
Slide 153: Venture Investments Realized Gains
Alexandria’s Venture Investments REALIZED GAINS1 ($ in Millions) $14 Key Drivers of Realized Gains $10 $11 $10 4Q18 1Q19 2Q19 3Q19 IPOs REALIZED GAINS REPRESENT M&A Events 4% OF FUNDS FROM OPERATIONS PER SHARE – DILUTED, AS ADJUSTED2 1. Represents realized gains included in funds from operations per
Slide 154: Continued Disciplined Funding: Sources and Uses of Capital
Alexandria’s Continued Disciplined Funding 2020 Guidance for Key Sources and Uses of Capital ($ in Millions) Midpoint of 2020 Guidance Range1 Net cash provided by operating activities after dividends $ 220 Incremental debt 690 2019 debt capital proceeds held in cash 190 Real estate dispositions, par
Slide 155: 2020 Cash Flows After Dividends
Alexandria’s 2020 Cash Flows After Dividends Growth in Funding Available for Reinvestment at Attractive Yields $220 83% $120 2013 2020 Projected¹ NET CASH PROVIDED BY OPERATING ACTIVITIES AFTER DIVIDENDS2 1. Represents the midpoint of our 2020 guidance range for net cash provided by operating activi
Slide 156: Common Stock Dividends Are Supported by Growth
Alexandria’s Common Stock Dividends Are Supported by Growth $3.97 $3.73 $3.45 $3.23 $3.05 2% $2.88 ANNUAL COMMON STOCK DIVIDENDS1 $2.61 5 2013 2014 2015 2016 2017 2018 2019 DIVIDEND PAYOUT RATIO2 60% 60% 58% 60% 59% 58% 57% 1. Represents the sum of quarterly dividends declared during each calendar y
Slide 157: Disciplined Approach to Funding Growth at Attractive Rates
Alexandria’s Disciplined Approach to Funding Growth at Attractive Rates Illustration of Embedded EBITDA Growth to Debt-Fund Construction on a Leverage-Neutral Basis $2.0B X 6.7% X 5.2x = $700M POTENTIAL FUTURE CIP1 YIELD1,2 4Q20 DEBT FUNDING ON A LEVERAGE-NEUTRAL BASIS LEVERAGE3 1. As of September 3
Slide 158: Projected Deliveries Provide Significant External Growth
Alexandria’s Projected Deliveries Provide Significant External Growth ($ in Millions) 2020 PROJECTED CONSTRUCTION SPENDING Active or committed projects1 $ 1,000 Future projects2 600 Midpoint of 2020 projected construction spending $ 1,600 1. Includes generic laboratory infrastructure/building improv
Slide 159: 2020 Guidance: Credit Metrics
Alexandria’s 2020 Guidance Solid and Continued Improvement in Credit Metrics NET DEBT AND PREFERRED STOCK TO ADJUSTED EBITDA1 FIXED-CHARGE COVERAGE RATIO1 ≤5.3x ≤5.2x >4.5x ≤5.0x >4.0x 4Q19 4Q20 Goal 4Q19 4Q20 Projected² Projected³ Projected² Projected³ 1. Quarters annualized. Goal for net debt and
Slide 160: Commitment to Permanent Long-Term Funding
Alexandria’s Commitment to Permanent Long-Term Funding Minimal Outstanding on Unsecured Senior Line of Credit ($ in Millions) $2,2001 $2,2001 $2,2001 $1,6501 SIGNIFICANT AVAILABILITY $208 <$200 <$200 $50 MINIMAL OUTSTANDING 12/31/17 12/31/18 12/31/19 12/31/20 Projected² Projected³ Remaining amounts
Slide 162: Appendix: Definitions and Non-GAAP Reconciliations
Appendix: Definitions and Non-GAAP Reconciliations Adjusted EBITDA and We use Adjusted EBITDA as a supplemental performance measure of our operations, for financial and operational decision-making, and as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted
Slide 163: Appendix: Definitions and Non-GAAP Reconciliations
Appendix: Definitions and Non-GAAP Reconciliations Fixed-charge Fixed-charge coverage ratio is a non-GAAP financial measure representing the ratio of Adjusted EBITDA to fixed charges. We believe this ratio is useful to investors as a supplemental measure of our ability to satisfy fixed financing obl
Slide 164: Appendix: Definitions and Non-GAAP Reconciliations
Appendix: Definitions and Non-GAAP Reconciliations Net cash provided by Net cash provided by operating activities after dividends includes the deduction for distributions to noncontrolling interests. For purposes of this calculation, changes in operating activities operating assets and liabilities a
Slide 165: Appendix: Alexandria's 2020 Guidance
Appendix: Alexandria’s 2020 Guidance Key Sources and Uses of Capital ($ in Millions) RANGE1 Net cash provided by operating activities after dividends $ 200 $ 240 Incremental debt 710 670 2019 debt capital proceeds held in cash 190 190 Real estate dispositions, partial interest sales, and 1,350 1,550
Slide 166: Reconciliation of FFO Per Share — By Quarter
Appendix: Reconciliation of Funds From Operations Per Share – Diluted, as Adjusted — By Quarter FUNDS FROM OPERATIONS PER SHARE, AS ADJUSTED – BY QUARTER 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 Net income (loss) per shar
Slide 167: Reconciliation of FFO Per Share — By Year
Appendix: Reconciliation of Funds From Operations Per Share – Diluted, as Adjusted — By Year FUNDS FROM OPERATIONS PER SHARE, AS ADJUSTED – BY YEAR 2013 2014 2015 2016 2017 2018 2019 2020 Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s $ 1.60 $ 1.01 $ 1.63 $ (1.99
Slide 168: Reconciliation of Cash Net Operating Income
Appendix: Reconciliation of Cash Net Operating Income ($ in Thousands) 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total revenue $ 460,621 $ 548,225 $ 586,073 $ 631,151 $ 726,877 $ 843,474 $ 921,706 $1,128,097 $1,327,459 Rental operations 123,309 159,567 174,523 189,039 219,164 261,232 278,408 325,
Slide 169: Reconciliations of Adjusted EBITDA and Adjusted EBITDA Margin
Appendix: Reconciliations of Adjusted EBITDA and Adjusted EBITDA Margin ($ in Thousands) SEPTEMBER 30, 2019 THREE MONTHS NINE MONTHS ENDED ENDED Net income $ (36,003) $ 187,994 Interest expense 46,203 128,182 Income taxes 887 3,074 Depreciation and amortization 135,570 404,094 Stock compensation exp
Slide 170: Reconciliations of Net Debt to Adjusted EBITDA and Fixed-Charge Coverage Ratio
Appendix: Reconciliations of Net Debt to Adjusted EBITDA and Net Debt and Preferred Stock to Adjusted EBITDA, and Fixed-Charge Coverage Ratio ($ in Thousands) 3Q19 3Q19 Adjusted EBITDA $ 274,977 Adjusted EBITDA $ 274,977 Adjusted EBITDA (annualized) $ 1,099,908 Interest expense $ 46,203 Capitalized

Alexandria Real Estate Equities — Investor Day (December 2019) on 6ix

Alexandria Real Estate Equities — Investor Day (December 2019)

Slide 1: Celebrating 25 Years of Disciplined Growth and Operational Excellence

Slide 2: Forward-Looking Statements

Slide 3: Mission Driven

Slide 4: From Visionary First Mover to Recognized Leader in Life Science Cluster Development

Slide 5: 1994 | $19M Series A

Slide 6: 2019 | $24.3B Total Market Cap

Slide 7: Clusters are geographic concentrations of interconnected companies

Slide 8: Alexandria's Life Science Cluster Locations

Slide 9: Best-in-Class, Mission-Driven Company

Slide 10: Total Shareholder Return Comparison

Slide 11: NAIOP 2019 Developer of the Year

Slide 12: Fourth Nareit Gold Investor CARE Award

Slide 13: Operational Excellence Drives Superior Results

Slide 14: Alexandria's mission statement

Slide 15: ARE DNA

Slide 16: Enduring Intrinsic Value Flows From Our DNA

Slide 17: Life-Changing Innovation

Slide 18: Life-Changing Innovation: Tenants' Science

Slide 19: Long-Tenured Leadership

Slide 20: Team-Oriented Culture

Slide 21: Operational Excellence

Slide 22: Design Leadership

Slide 23: Sustainability and Wellness

Slide 24: Philanthropy

Slide 25: Philanthropy: Fred's Team

Slide 26: Cluster Development: Four Critical Components

Slide 27: Cluster Development: Mission Bay, San Francisco

Slide 28: Cluster Development: New York City

Slide 29: Cluster Development: Cambridge

Slide 30: Sustainability and Resilience

Slide 31: Sustainability and Climate Change Framework

Slide 32: Sustainability Mission

Slide 33: Sustainability Leadership Recognition and Awards

Slide 34: Tenant testimonial: Takeda

Slide 35: Sustainability Goals Aligned With Innovative Tenants

Slide 36: 2025 Sustainability Goals

Slide 37: Commitment to Green Building

Slide 38: Collaborative Campuses Promote Health, Wellness, and Productivity

Slide 39: Case Study: Net Zero Energy

Slide 40: Tackling Embodied Carbon

Slide 41: Framework for Resilience

Slide 42: Building Resilience: Coastal Flooding and Sea Level Rise

Slide 43: Building Resilience: Flooding From Heavy Rain

Slide 44: Building Resilience: Wildfire and Drought

Slide 45: Life Science Industry

Slide 46: Innovation Is Key to Developing New Therapies and Cures

Slide 47: Life Science Industry Is a Significant Driver of the Economy

Slide 48: Fundamental Drivers Impacting Life Science Demand

Slide 49: Significant Funding From Diverse Sources Drives Innovation

Slide 50: Strong Bipartisan Support Accelerates Biomedical Research

Slide 51: Strong Philanthropic Support Helps Drive Innovation

Slide 52: Internal Growth Momentum

Slide 53: Cash Flows, Market Fundamentals, Internal Growth Momentum

Slide 54: High-Quality, Increasing Cash Flows

Slide 55: Consistent Growth in Cash Net Operating Income

Slide 56: High-Quality Cash Flows

Slide 57: Top Tenants by Annual Rental Revenue

Slide 58: Efficient Execution Drives Strong EBITDA Margins

Slide 59: Favorable Lease Structure

Slide 60: Enduring Real Estate Asset Base

Slide 61: Low Leasing Costs and Maintenance Capital Expenditures

Slide 62: Greater Boston's Solid Market Fundamentals

Slide 63: San Francisco's Solid Market Fundamentals

Slide 64: New York City's Solid Market Fundamentals

Slide 65: San Diego's Solid Market Fundamentals

Slide 66: Seattle's Solid Market Fundamentals

Slide 67: Maryland's Solid Market Fundamentals

Slide 68: Research Triangle's Solid Market Fundamentals

Slide 69: Strong Same Property Cash NOI Growth

Slide 70: Same Property Cash NOI Growth Illustration

Slide 71: Strong Historical Leasing Volume

Slide 72: Strong Historical Rental Rate Growth

Slide 73: Steady Occupancy

Slide 74: 2020 Contractual Lease Expirations

Slide 75: No Significant Contractual Lease Expirations in 2020: Top 10

Slide 76: Contractual Lease Expirations in 2020

Slide 77: Disciplined External Growth

Slide 78: External Growth: Strategically Creating Value

Slide 79: Strategic Value-Added Acquisitions