Alexandria Real Estate Equities, Inc. · NYSE:ARE

Alexandria Real Estate Equities — Q1 2025 Earnings Presentation

55 slides from Alexandria Real Estate Equities's earnings presentation, Apr 28, 2025

  1. Slide 1: Reserved . © 2025

    Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025

  2. Slide 2: Reserved. © 2025 iv

    Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 iv

  3. Slide 3: Life science industry sources and statistics

    (1) Source: U.S. Food and Drug Administration. Novel therapies approved by the FDA (Center for Drug Evaluation and Research) include new molecular entities and new biologics defined as products containing active moieties that have not previously been approved by the FDA . (2) Source: PhRMA, “Medicin

  4. Slide 4: Disease burden and unmet medical need

    (1) Source: U.S. House Committee on Energy and Commerce, “The 21st Century Cures Discussion Document White Paper,” January 27, 2015. (2) Source: American Cancer Society, “Cancer Facts & Figures 2025.” Represents U.S. projection for 2025. (3) Source: Centers for Disease Control and Prevention, “Heart

  5. Slide 5: Reserved. © 2025 vii

    Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 vii

  6. Slide 6: Largest, highest-quality asset base in the best locations

    LARGEST, HIGHEST-QUALITY ASSET BASE CLUSTERED IN THE BEST LOCATIONS SECTOR-LEADING CLIENT BASE OF ~ 750 TENANTS HIGH-QUALITY CASH FLOWS PROVEN UNDERWRITING FORTRESS BALANCE SHEET LONG-TENURED, HIGHLY EXPERIENCED MANAGEMENT TEAM LIFE SCIENCE REAL ESTATE WE INVENTED IT. WE DOMINATE IT. THE MOST TRUSTE

  7. Slide 7: Megacampus platform drives superior operating results

    ALEXANDRIA’S MEGACAMPUS ™ PLATFORM DRIVES SUPERIOR OPERATING RESULTS ALEXANDRIA’S MEGACAMPUS PLATFORM 75% of Annual Rental Revenue 71% of Operating RSF 71% of Total Development and Redevelopment Pipeline RSF ALEXANDRIA’S MEGACAMPUS OCCUPANCY OUTPERFORMANCE Average Occupancy (1) Since 2021 95% 91% Me

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  9. Slide 9: Tenant base by business type

    Life Science Product, Service, and Device Public Biotechnology – Approved or Marketed Product Public Biotechnology – Preclinical or Clinical Stage Private Biotechnology Other Investment-Grade or Large Cap Tech Other (2) Biomedical Institutions (1) 87% of Top 20 Tenant Annual Rental Revenue as of 1Q2

  10. Slide 10: Diverse life science tenant base drives consistent leasing

    ALEXANDRIA’S STRONG, BROAD, AND DIVERSE LIFE SCIENCE TENANT BASE DRIVES CONSISTENT LEASING AND LONG-DURATION REMAINING LEASE TERMS LONG-DURATION LEASE TERMS REMAINING LEASE TERM (in years) (2) Multinational Pharmaceutical 7.3 Life Science Product, Service, and Device 6.6 Government Institutions 5.3

  11. Slide 11: Alexandria's outstanding long-term value

    ALEXANDRIA’S OUTSTANDING LONG-TERM VALUE Total Shareholder Return From ARE’s IPO on May 27, 1997 (1) to March 31, 2025 FTSE NAREIT EQUITY HEALTH CARE INDEX S&P 500 FTSE ALL EQUITY REITS MSCI US REIT INDEX RUSSELL 2000

  12. Slide 12: Total shareholder return since IPO

    1,427% 1,001% 919% 881% 671% 1,149% Source: S&P Global Market Intelligence. Assumes reinvestment of dividends. (1) Alexandria’s initial public offering was priced at $20.00 per share on May 27, 1997 . Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xii ALEXANDRIA’S STRONG FIVE-YEAR

  13. Slide 13: Five-year FFO per share growth vs. peers

    FIVE-YEAR GROWTH IN FUNDS FROM OPERATIONS PER SHARE – DILUTED, AS ADJUSTED (2020–2025) Source: S&P Global Market Intelligence data for REITs within the FTSE NAREIT Equity Health Care REIT Index, including FFO per share consensus for 2025, available as of April 25, 2025. FFO per-share growth is calcu

  14. Slide 14: Sector-leading client base drives stable cash flows

    ALEXANDRIA’S SECTOR-LEADING CLIENT BASE OF APPROXIMATELY 750 TENANTS DRIVES STABLE, RESILIENT, AND LONG-DURATION CASH FLOWS HIGH-QUALITY CASH FLOWS STRONG MARGINS (1) 70% 71% Operating Adjusted EBITDA LONG-DURATION LEASE TERMS Top 20 Tenants All Tenants 9.6 7.6 Weighted-Average Remaining Term (in Ye

  15. Slide 15: Sustained operational excellence in tenant collections

    ALEXANDRIA’S SUSTAINED OPERATIONAL EXCELLENCE AND STRENGTH IN TENANT COLLECTIONS 99.8% Average Tenant Collections 1Q21– 1Q25 Tenant Receivables at March 31, 2025 Represent 0.9% of 1Q25 Rental Revenues

  16. Slide 16: Tenant rents and receivables collected

    TENANT RENTS AND RECEIVABLES COLLECTED (1) (1) Represents tenant collections for each quarter-end as of each respective earnings release date. Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2025 xv

  17. Slide 17: Strong and flexible balance sheet with significant liquidity

    TOP 10% CREDIT RATING RANKING AMONG ALL PUBLICLY TRADED U.S. REITS (4) ALEXANDRIA CONTINUES TO HAVE A STRONG AND FLEXIBLE BALANCE SHEET WITH SIGNIFICANT LIQUIDITY SIGNIFICANT LIQUIDITY (1) 4Q25 TARGET NET DEBT AND PREFERRED STOCK TO ADJUSTED EBITDA (2) PERCENTAGE OF FIXED-RATE DEBT SINCE 2021 (3) $5

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  19. Slide 19: Weighted-average remaining debt term

    WEIGHTED-AVERAGE REMAINING DEBT TERM (IN YEARS)

  20. Slide 20: Debt term vs. S&P REIT average

    6.1 Years S&P 500 REIT Average as of December 31, 2024 Sources: S&P Global Market Intelligence, Bloomberg, or company filings as of December 31, 2024 (data not disclosed for PSA at the time of analysis as of April 25, 2025), except for ARE, which is as of March 31, 2025 . Alexandria Real Estate Equi

  21. Slide 21: Dividend yield and payout ratio

    5.7% Dividend Yield 4.5% Average Annual Dividend Per-Share Growth 57% 1Q25 Payout Ratio $2.3B Net Cash Provided by Operating Activities After Dividends

  22. Slide 22: Annual common stock dividend per share

    ANNUAL COMMON STOCK DIVIDEND PER SHARE (1) (2) (3) (4) (1) Dividend yield is calculated as the dividend declared for the three months ended March 31, 2025 of $1.32 per common share annualized divided by the closing price of our common stock on March 31, 2025 of $92.51 . (2) Represents the average an

  23. Slide 23: 1Q25 key highlights and operating results

    Alexandria Real Estate Equities, Inc. Reports: 1Q25 Net Loss per Share – Diluted of $(0.07) ; and 1Q25 FFO per Share – Diluted, as Adjusted, of $2.30 PASADENA, Calif. – April 28, 2025 – Alexandria Real Estate Equities, Inc. (NYSE: ARE) announced financial and operating results for the first quarter

  24. Slide 24: 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) Other Investment-Grade or Large Cap Tech Biomedical Institutions (1) Government Institutions

  25. Slide 25: 1.2%

    1.2%

  26. Slide 26: Same property performance (cash basis)

    0 4.6% 9.1% 2024 3/31/25 Cash Basis

  27. Slide 27: Same property performance

    18.5% 16.9% 2024 3/31/25

  28. Slide 28: Same property performance

    (1) (3.1)% 2024 3/31/25 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 fina

  29. Slide 29: Development and redevelopment deliveries to provide incremental NOI growth

    ALEXANDRIA’S DEVELOPMENT AND REDEVELOPMENT DELIVERIES ARE EXPECTED TO PROVIDE INCREMENTAL GROWTH IN ANNUAL NET OPERATING INCOME Placed Into Service Near-Term Deliveries Intermediate-Term Deliveries 1Q25 2Q25 – 4Q26 2027 – 2Q28 $37M $171M $179M 309,494 RSF 1.6 million RSF 2.4 million RSF 100% Leased

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  31. Slide 31: 1Q25 development and redevelopment deliveries

    Property/Market/Submarket Our Ownership Interest RSF Placed in Service Occupancy Percentage (2) Total Project Unlevered Yields 1Q25 Delivery Date (1) Prior to 1/1/25 1Q25 Total Initial Stabilized Initial Stabilized (Cash Basis) RSF Investment Development projects 230 Harriet Tubman Way/San Francisco

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  34. Slide 34: | | i) tess

    | | i) tess a) fill HESS ype wl aml ais aiden AtEm i fees hee We

  35. Slide 35: Near-term development projects and leasing status

    10935, 10945, and 10955 Alexandria Way (3) 4135 Campus Point Court 10075 Barnes Canyon Road 8800 Technology Forest Place San Diego/Torrey Pines San Diego/ University Town Center San Diego/Sorrento Mesa Texas/Greater Houston 241,504 RSF 426,927 RSF 235,361 RSF 73,298 RSF 100% Leased 100% Leased 68% L

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  39. Slide 39: New Class A/A+ properties: 2027 and beyond stabilization

    (1) Image represents 500 North Beacon Street on The Arsenal on the Charles Megacampus. (2) Image represents a multi-tenant project expanding the Alexandria Center ® for Science and Technology – Mission Bay Megacampus, where we have a 25% interest. During the three months ended December 31, 2024, we

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  42. Slide 42: Future development projects

    651 Gateway Boulevard 269 East Grand Avenue 701 Dexter Avenue North San Francisco Bay Area/ South San Francisco San Francisco Bay Area/ South San Francisco Seattle/Lake Union 259,689 RSF 107,250 RSF 227,577 RSF

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  44. Slide 44: < Lijee a i. ‘al pelt

    Ji < Lijee a i. 2 ‘al pelt

  45. Slide 45: New Class A/A+ properties: current projects

    (1) Image represents 60 Sylvan Road on the Alexandria Center ® for Life Science – Waltham Megacampus. The project is expected to capture demand in our Route 128 submarket. Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 36 New Class A/A+ Development and Redevelopment Properties: C

  46. Slide 46: Megacampus future SF

    1.9M FUTURE SF Refer to “ Megacampus™ ” under “Definitions and reconciliations” in the Supplemental Information for additional details. Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF

  47. Slide 47: Megacampus future SF

    1.5M FUTURE SF Refer to “ Megacampus™ ” under “Definitions and reconciliations” in the Supplemental Information for additional details. Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includes the RSF

  48. Slide 48: Megacampus active and future SF

    1.4M ACTIVE AND FUTURE SF Refer to “ Megacampus™ ” under “Definitions and reconciliations” in the Supplemental Information for additional details. Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includ

  49. Slide 49: Megacampus active and future SF

    1.3M ACTIVE AND FUTURE SF Refer to “ Megacampus™ ” under “Definitions and reconciliations” in the Supplemental Information for additional details. Represents total square footage upon completion of development or redevelopment of one or more new Class A/A+ properties. Square footage presented includ

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  51. Slide 51: Investments: public vs. private, realized gains and impairments

    13% Public 24% Tenant 87% Private 76% Non-Tenant (1) Consists of realized gains of $29.3 million , offset by impairment charges of $11.2 million during the three months ended March 31, 2025 . (2) Consists of realized gains of $117.2 million , offset by impairment charges of $58.1 million during the

  52. Slide 52: Liquidity and net debt to adjusted EBITDA

    (in millions) Availability under our unsecured senior line of credit, net of amounts outstanding under our commercial paper program $ 4,700 Cash, cash equivalents, and restricted cash 484 Availability under our secured construction loan 45 Investments in publicly traded companies 85 Liquidity as of

  53. Slide 53: Net debt and preferred stock to adjusted EBITDA

    5.9x 5.2x <$5.2x 12/31/24 3/31/25 12/31/25 Target

  54. Slide 54: Fixed-charge coverage ratio; summary of debt

    4.0x to 4.5x Refer to “Definitions and reconciliations” in the Supplemental Information for additional details. (1) Quarter annualized. Alexandria Real Estate Equities, Inc. All Rights Reserved . © 2025 52 Summary of Debt

  55. Slide 55: Summary of debt (continued)

    (1) Upon maturity on April 30, 2025 , we expect to repay $600.0 million of our 3.45% unsecured senior notes payable. (2) Refer to footnotes 2 through 4 on the next page under “Fixed-rate and variable-rate debt” for additional details. Alexandria Real Estate Equities, Inc. All Rights Reserved . © 202

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