Alexandria Real Estate Equities, Inc. · NYSE:ARE

Alexandria Real Estate Equities — Q2 2024 Earnings Presentation

75 slides from Alexandria Real Estate Equities's earnings presentation, Jul 22, 2024

Slide 1: Company Highlights, Earnings Press Release and Supplemental Information contents
Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2024 COMPANY HIGHLIGHTS Page Page Mission and Cluster Model ..................................................................... iii Corporate Responsibility .................................................................... xxvi EARNI
Slide 4: Alexandria's Competitive Advantages
ALEXANDRIA’S COMPETITIVE ADVANTAGES First mover advantage in the top life science clusters High-quality assets aggregated in desirable and well-amenitized mega campuses High-quality cash flows and substantial embedded future net operating income Longstanding tenant relationships that demonstrate ste
Slide 5: Alexandria's Outstanding Long-Term Value
ALEXANDRIA’S OUTSTANDING LONG-TERM VALUE
Slide 6: Total Shareholder Return Since IPO
HEALTHCARE REALTY TRUST WELLTOWER 2,274% NATIONAL HEALTH INVESTORS 1,092% FTSE NAREIT EQUITY HEALTH CARE INDEX 1,091% LTC PROPERTIES 1,048% VENTAS 862% MSCI US REIT INDEX 790% OMEGA HEALTHCARE INVESTORS 605% HEALTHPEAK PROPERTIES 589% Total Shareholder Return From ARE’s IPO on May 27, 1997 (1) to Ju
Slide 7: Total Shareholder Return Notes
Source: S&P Global Market Intelligence. Assumes reinvestment of dividends. The REITs presented individually in the chart above are only those constituents of the FTSE NAREIT Equity Health Care Index as of June 30, 2024 for which TSR information since May 27, 1997 is available. (1) Alexandria’s initi
Slide 9: Solid Leasing Volume and High Occupancy
ALEXANDRIA’S SOLID LEASING VOLUME IN 2024 REMAINS IN LINE WITH OUR HISTORICAL ANNUAL AVERAGE FROM 2013 THROUGH 2020 Annualized Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024 viii ALEXANDRIA’S OPERATIONAL EXCELLENCE DRIVES STEADY AND CONSISTENTLY HIGH OCCUPANCY
Slide 10: Occupancy Notes
(1) Represents the average of acquired vacancy percentages as of each years ended December 31, 2020 through 2023 . (2) Represents the midpoint of our 2024 guidance range for occupancy percentage in North America as of December 31, 2024 . Refer to “Guidance” in the Earnings Press Release for addition
Slide 11: Industry-Leading Client Base of Approximately 800 Tenants
ALEXANDRIA’S REIT INDUSTRY-LEADING CLIENT BASE OF APPROXIMATELY 800 TENANTS DRIVES STABLE, RESILIENT, AND LONG-DURATION CASH FLOWS
Slide 12: Tenant Mix
Life Science Product, Service, and Device Multinational Pharmaceutical Public Biotechnology – Approved or Marketed Product Public Biotechnology – Preclinical or Clinical Stage Private Biotechnology Other (3) Investment-Grade or Large Cap Tech Future Change in Use (2) Biomedical and Government Instit
Slide 13: Sustained Strength in Tenant Collections
ALEXANDRIA’S SUSTAINED OPERATIONAL EXCELLENCE AND STRENGTH IN TENANT COLLECTIONS 99.8% Average Tenant Collections 1Q21– 2Q24 Tenant Receivables Represent 0.9% of 2Q24 Rental Revenues
Slide 14: Tenant Rents and Receivables Collected
TENANTS RENTS AND RECEIVABLES COLLECTED (1) As of June 30, 2024 . (1) Represents t enant rents and receivables collected for each quarter-end as of each respective earnings release date . Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024 xi
Slide 17: Incremental Net Operating Income from Value-Creation Pipeline
Refer to “ Net operating income ” under “Definitions and reconciliations” in the Supplemental Information for additional details, including its reconciliation from the most directly comparable financial measure presented in accordance with GAAP. (1) Our share of incremental annual net operating inco
Slide 19: Asset Recycling Program: Dispositions and Partial Interest Sales
ALEXANDRIA’S STRONG EXECUTION OF OUR ASSET RECYCLING PROGRAM STRATEGIC DISPOSITIONS AND SALES OF PARTIAL INTERESTS SINCE 2019 $8.4 BILLION IN SALES $3.0 BILLION IN GAINS (1) (2) (1) I ncludes amounts related to real estate dispositions and sales of partial interests completed from January 1, 2019 th
Slide 21: Strong and Flexible Balance Sheet with Significant Liquidity
TOP 10% CREDIT RATING RANKING AMONG ALL PUBLICLY TRADED U.S. REITS (1) ALEXANDRIA’S STRONG AND FLEXIBLE BALANCE SHEET WITH SIGNIFICANT LIQUIDITY WEIGHTED AVERAGE 4Q24 TARGET YEARS Baa1 Stable BBB+ Stable SIGNIFICANT LIQUIDITY (2) PERCENTAGE OF DEBT MATURING 2049 & BEYOND PERCENTAGE OF DEBT AT FIXED
Slide 22: Dividend Yield and Growth
4.4% Dividend Yield 5.4% Average Annual Dividend Per-Share Growth $2.1B Net Cash Provided by Operating Activities After Dividends (1) (2) (3)
Slide 23: Annual Common Stock Dividend Per Share
ANNUAL COMMON STOCK DIVIDEND PER SHARE (4) (1) Dividend y ield is calculated as the dividend declared for the three months ended June 30, 2024 of $1.30 per common share annualized divided by the closing price of our common stock on June 30, 2024 o f $116.97 . (2) Represents the years ended December
Slide 24: Heart of the $5 Trillion Life Science Industry
ALEXANDRIA: AT THE VANGUARD AND HEART OF THE $5 TRILLION (1 ) SECULARLY GROWING LIFE SCIENCE INDUSTRY (1) Source: YCharts. Represents the aggregate market capitalization for the life science industry, including companies in the biotechnology and pharmaceutical sectors, as of July 12, 2024. Alexandri
Slide 25: Life Science Industry Funding Sources
(1) Source: YCharts. Represents the aggregate market capitalization for the life science industry, including companies in the biotechnology and pharmaceutical sectors, as of July 12, 2024. (2) Source: Evaluate Pharma, March 2024. Represents consensus forecast for global biopharma R&D spend in 2023.
Slide 26: FDA Novel Therapy Approvals
Source: U.S. Food and Drug Administration. Novel therapies approved by the FDA (Center for Drug Evaluation and Research (“CDER”)) include new molecular entities and new biologics defined as products containing active moieties that have not previously been approved by the FDA. mRESVIA was approved un
Slide 27: Global Biopharma R&D Spend
Source : Evalua te Pharma, March 2024. Total corporate R&D spend by global biopharma companies. Includes analyst forecast values for companies that have not reported 2023 full-year results. Top 20 companies ranked by pharma R&D spend in 2023. (1) Source: Evaluate Pharma, “World Preview 2022 Outlook
Slide 28: Public Follow-On and PIPE Financings
Source: Bio Cen tury, June 2024. Represents public follow-on and private investment in public equity (“PIPE”) financings completed by U.S. listed biopharma companies. Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024 xxiv
Slide 32: Second Quarter 2024 Financial and Operating Results
Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2024 xxviii Alexandria Real Estate Equities, Inc. Reports: 2Q24 and 1H24 Net Income per Share – Diluted of $0.25 and $1.22 , respectively; and 2Q24 and 1H24 FFO per Share – Diluted, as Adjusted, of $2.36 and $4.71 , respectively PASADENA,
Slide 33: Value-Creation Pipeline Deliveries
Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2024 1 Alexandria’s highly leased value-creation pipeline delivered incremental annual net operating income of $16 million commencing during 2Q24 and is expected to deliver incremental annual net operating income aggregating $480 million
Slide 34: Annual Rental Revenue by Tenant Type
Life Science Product, Service, and Device Multinational Pharmaceutical Public Biotechnology – Approved or Marketed Product Public Biotechnology – Preclinical or Clinical Stage Private Biotechnology Other (2) Investment-Grade or Large Cap Tech Future Change in Use (1) Biomedical and Government Instit
Slide 35: Annual Rental Revenue by Market
94.6% i) T T T T T T T Mr North Greater San San Seattle Maryland Research New Texas America Boston Francisco Diego Triangle York Bay Area City
Slide 36: Mega Campuses and Occupancy
74% Mega Campuses 26% Non-Mega Campuses As of June 30, 2024 . Annual rental revenue represents amounts in effect as of June 30, 2024 . Refer to “Definitions and reconciliations” in the Supplemental Information for additional details. (1) Represents average occupancy of operating properties as of eac
Slide 37: Rental Rate Increases
3.4% 1.1% 2023 YTD 6/30/24
Slide 38: Rental Rate Increases (Cash Basis)
4.6% 3.7% 2023 YTD 6/30/24 Cash Basis
Slide 39: Same Property Performance
29.4% 26.2% 2023 YTD 6/30/24
Slide 40: Key Operating Metrics Notes
Refer to “Same property performance” and “Definitions and reconciliations” in the Supplemental Information for additional details. “Definitions and reconciliations” contains the definition of “Net operating income” and its reconciliation from the most directly comparable financial measure presented
Slide 41: Incremental Net Operating Income from Pipeline
Refer to “ Net operating income ” under “Definitions and reconciliations” in the Supplemental Information for additional details, including its reconciliation from the most directly comparable financial measure presented in accordance with GAAP. (1) Our share of incremental annual net operating inco
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Slide 45: Recent Deliveries
Property/Market/Submarket Our Ownership Interest RSF Placed in Service Occupancy Percentage (3) Total Project Unlevered Yields 2Q24 Delivery Date (2) Prior to 1/1/24 1Q24 2Q24 Total Initial Stabilized Initial Stabilized (Cash Basis) RSF Investment Development projects 99 Coolidge Avenue/Greater Bost
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Slide 50: Current Projects: Boston and San Francisco
421 Park Drive 40, 50, and 60 Sylvan Road (2) 840 Winter Street 1450 Owens Street (3) 651 Gateway Boulevard Greater Boston/Fenway Greater Boston/Route 128 Greater Boston/Route 128 San Francisco Bay Area/ Mission Bay San Francisco Bay Area/ South San Francisco 392,011 RSF 576,924 RSF 139,680 RSF 212,
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Slide 55: Current Projects Notes
(1) Image represents 500 North Beacon Street on the Arsenal on the Charles mega campus. (2) Image represents 60 Sylvan Road on the Alexandria Center ® for Life Science – Waltham mega campus. The project is expected to capture demand in our Route 128 submarket. (3) I mage represents a single- or mult
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Slide 60: Current Projects: Seattle, Maryland and Texas
1150 Eastlake Avenue East Alexandria Center ® for Advanced Technologies – Monte Villa Parkway (2) 9820 Darnestown Road 9808 Medical Center Drive 8800 Technology Forest Place Seattle/Lake Union Seattle/Bothell Maryland/Rockville Maryland/Rockville Texas/Greater Houston 31,270 RSF 34,306 RSF 250,000 R
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Slide 65: Current Projects (continued)
(1) Image represents 10955 Alexandria Way on the One Alexandria Square mega campus . (2) Image represents 3755 Monte Villa Parkway. New Class A/A+ Development and Redevelopment Properties: Current Projects (continued)
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Slide 67: Future Development Campuses
Campus Point by Alexandria Alexandria Center ® for Life Science – South Lake Union San Diego/University Town Center Seattle/Lake Union 1.7 million active and future SF 1.3 million future SF
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Slide 69: Mega Campus Definition
Refer to “ Mega campus ” under “Definitions and reconciliations” in the Supplemental Information for additional details.
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Slide 71: Investments in Real Estate and Non-Real Estate Entities
15% Public 29% Tenant 85% Private 71% Non-Tenant (1) Consists of realized gains of $33.4 million and $62.2 million , partially offset by impairment charges of $12.8 million and $27.5 million during the three and six months ended June 30, 2024 , respectively , (2) Consists of re alized gains of $80.6
Slide 72: Liquidity and Key Credit Metrics
(in millions) Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program $ 4,800 Outstanding forward equity sales agreements (1) 27 Cash, cash equivalents, and restricted cash 566 Availability under our secured construction loan 61 Investmen
Slide 73: Net Debt and Preferred Stock to Adjusted EBITDA
5 Ax 9.4Xx <5.1x 2023 6/30/24 12/31/24 Target
Slide 74: Definitions and Reconciliations Notes
Refer to “Definitions and reconciliations” in the Supplemental Information for additional details. (1) Represents expected net proceeds from the future settlement of 230 thousand shares of common stock under forward equity sales agreements after underwriter discounts. (2) Quarter annualized.
Slide 75: Summary of Debt
(1) Refer to footnotes 2 through 4 on the next page under “Fixed-rate and variable-rate debt” for additional details. Summary of Debt

Alexandria Real Estate Equities — Q2 2024 Earnings Presentation on 6ix

Alexandria Real Estate Equities — Q2 2024 Earnings Presentation

Slide 1: Company Highlights, Earnings Press Release and Supplemental Information contents

Slide 2: Mission and Cluster Model

Slide 3: Reserved. © 2024 iv

Slide 4: Alexandria's Competitive Advantages

Slide 5: Alexandria's Outstanding Long-Term Value

Slide 6: Total Shareholder Return Since IPO

Slide 7: Total Shareholder Return Notes

Slide 8: Alexandria's Internal Growth

Slide 9: Solid Leasing Volume and High Occupancy

Slide 10: Occupancy Notes

Slide 11: Industry-Leading Client Base of Approximately 800 Tenants

Slide 12: Tenant Mix

Slide 13: Sustained Strength in Tenant Collections

Slide 14: Tenant Rents and Receivables Collected

Slide 15: Alexandria's External Growth

Slide 16: Reserved. © 2024 xiii

Slide 17: Incremental Net Operating Income from Value-Creation Pipeline

Slide 18: Reserved. © 2024 xv

Slide 19: Asset Recycling Program: Dispositions and Partial Interest Sales

Slide 20: Alexandria's Fortress Balance Sheet

Slide 21: Strong and Flexible Balance Sheet with Significant Liquidity

Slide 22: Dividend Yield and Growth

Slide 23: Annual Common Stock Dividend Per Share

Slide 24: Heart of the $5 Trillion Life Science Industry

Slide 25: Life Science Industry Funding Sources

Slide 26: FDA Novel Therapy Approvals

Slide 27: Global Biopharma R&D Spend

Slide 28: Public Follow-On and PIPE Financings

Slide 29: Venture Capital Investment

Slide 30: Alexandria's Corporate Responsibility

Slide 31: Reserved. © 2024 xxvii

Slide 32: Second Quarter 2024 Financial and Operating Results

Slide 33: Value-Creation Pipeline Deliveries

Slide 34: Annual Rental Revenue by Tenant Type

Slide 35: Annual Rental Revenue by Market

Slide 36: Mega Campuses and Occupancy

Slide 37: Rental Rate Increases

Slide 38: Rental Rate Increases (Cash Basis)

Slide 39: Same Property Performance

Slide 40: Key Operating Metrics Notes

Slide 41: Incremental Net Operating Income from Pipeline

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Slide 43: Slide 43

Slide 44: Slide 44

Slide 45: Recent Deliveries

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Slide 50: Current Projects: Boston and San Francisco

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Slide 55: Current Projects Notes

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Slide 60: Current Projects: Seattle, Maryland and Texas

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Slide 65: Current Projects (continued)

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Slide 67: Future Development Campuses

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Slide 69: Mega Campus Definition

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Slide 71: Investments in Real Estate and Non-Real Estate Entities

Slide 72: Liquidity and Key Credit Metrics

Slide 73: Net Debt and Preferred Stock to Adjusted EBITDA

Slide 74: Definitions and Reconciliations Notes

Slide 75: Summary of Debt