Alexandria Real Estate Equities, Inc. · NYSE:ARE

Alexandria Real Estate Equities — Q2 2017 Earnings Presentation

103 slides from Alexandria Real Estate Equities's earnings presentation, Jul 31, 2017

1. Slide 1: Alexandria Real Estate Equities, Inc.

   Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2017

2. Slide 2: Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2017

   Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2017 i

3. Slide 3: (1) Represents annual rental revenue in effect as of .

   (1) Represents annual rental revenue in effect as of June 30, 2017. ii

4. Slide 4: Table of Contents

   EARNINGS PRESS RELEASE Page SUPPLEMENTAL INFORMATION Page SUPPLEMENTAL INFORMATION (CONTINUED) Page Table of Contents June 30, 2017 Second Quarter Ended June 30, 2017, Financial and Operating Results Acquisitions Dispositions Guidance Earnings Call Information and About the Company Consolidated Stat

5. Slide 5: Second Quarter 2017 Financial and Operating Results

   Alexandria Real Estate Equities, Inc. Reports Second Quarter Ended June 30, 2017 , Financial and Operating Results Strong Internal and External Growth PASADENA, Calif. – July 31, 2017 – Alexandria Real Estate Equities, Inc. (NYSE:ARE) announced financial and operating results for the second quarter

6. Slide 6: Second Quarter Results (continued)

   Second Quarter Ended June 30, 2017, Financial and Operating Results (continued) June 30, 2017 Items included in net income (loss) attributable to Alexandria’s common stockholders (amounts are shown after deducting any amounts attributable to noncontrolling interests): (In millions, except per share

7. Slide 7: Acquisitions

   Property Submarket/Market Date of Purchase Number of Properties Operating Occupancy Square Footage Purchase Price Operating Redevelopment Future Development June 30, 2017 (Dollars in thousands) 1Q17: 303 Binney Street (1) Cambridge/Greater Boston 3/29/17 — N/A — — 208,965 $ 80,250 88 Bluxome Street

8. Slide 8: Dispositions

   Property/Market/Submarket Date of Sale RSF Net Operating Income (1) Net Operating Income (Cash) (1) Contractual Sale Price Gain June 30, 2017 (Dollars in thousands) 6146 Nancy Ridge Drive/San Diego/Sorrento Mesa 1/6/17 21,940 N/A N/A $ 3,000 $ 1401/1413 Research Boulevard/Maryland/Rockville (2) 5/17

9. Slide 9: Guidance

   Summary of Key Changes in Guidance As of 7/31/17 As of 5/1/17 Summary of Key Changes in Guidance As of 7/31/17 As of 5/1/17 Earnings per Share and Funds From Operations per Share Attributable to Alexandria’s Common Stockholders – Diluted Key Assumptions Low High Key Credit Metrics As of 7/31/17 Key

10. Slide 10: Earnings Call Information and About the Company

    Earnings Call Information and About the Company June 30, 2017 We will host a conference call on Tuesday , August 1, 2017 , 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

11. Slide 11: Consolidated Statements of Income

    Three Months Ended Six Months Ended 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 6/30/17 6/30/16 June 30, 2017 (In thousands, except per share amounts) Revenues: Rental $ 211,942 $ 207,193 $ 187,315 $ 166,591 $ 161,638 $ 419,135 $ 319,914 Tenant recoveries 60,470 61,346 58,270 58,681 54,107 121,816 106,

12. Slide 12: Consolidated Balance Sheets

    6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 June 30, 2017 (In thousands) Assets Investments in real estate $ 9,819,413 $ 9,470,667 $ 9,077,972 $ 7,939,179 $ 7,774,608 Investments in unconsolidated real estate joint ventures 58,083 50,457 50,221 133,580 132,433 Cash and cash equivalents 124,877 151,209

13. Slide 13: Funds From Operations and FFO per Share

    Three Months Ended Six Months Ended 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 6/30/17 6/30/16 June 30, 2017 (In thousands, except per share amounts) The following tables present a reconciliation of net income (loss) attributable to Alexandria’s common stockholders, the most directly comparable financ

14. Slide 14: Company Profile

    EXECUTIVE MANAGEMENT TEAM Company Profile June 30, 2017 Alexandria Real Estate Equities, Inc. (NYSE:ARE), an S&P 500 ® company, is an urban office REIT uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $1

15. Slide 15: Investor Information

    Corporate Headquarters New York Stock Exchange Trading Symbols Information Requests Equity Research Coverage Rating Agencies Investor Information June 30, 2017 385 East Colorado Boulevard, Suite 299 Common stock: ARE Phone: (626) 396-4828 Pasadena, California 91101 7.00% Series D preferred stock: AR

16. Slide 16: High-Quality, Diverse, and Innovative Tenants

    Investment-Grade Tenants Tenant Mix High-Quality, Diverse, and Innovative Tenants June 30, 2017 Cash Flows from High-Quality, Diverse, and Innovative Tenants 51%

17. Slide 17: Tenant Mix and Annual Rental Revenue

    of ARE’s Total Annual Rental Revenue (1) Percentage of ARE’s Annual Rental Revenue (1) (1) Represents annual rental revenue in effect as of June 30, 2017 .

18. Slide 18: Class A Properties in AAA Locations

    Class A Properties in AAA Locations AAA Locations Class A Properties in AAA Locations June 30, 2017 High-Quality Cash Flows from Class A Properties in AAA Locations 79%

19. Slide 19: Class A Properties in AAA Locations: Annual Rental Revenue

    of ARE’s Annual Rental Revenue (1) Percentage of ARE’s Annual Rental Revenue (1) (1) Represents annual rental revenue in effect as of June 30, 2017 .

20. Slide 20: Occupancy

    Solid Historical Occupancy (1) Occupancy across Key Locations Occupancy June 30, 2017 Solid Demand for Class A Properties in AAA Locations Drives Solid Occupancy 95%

21. Slide 21: Occupancy of Operating Properties

    Over 10 Years Occupancy of Operating Properties as of June 30,2017 (1) Average occupancy of operating properties in North America as of each December 31 for the last 10 years and as of June 30, 2017. (2) In December 2016, Eli Lilly and Company vacated 125,409 RSF at 10300 Campus Point Drive in our U

22. Slide 22: Financial and Asset Base Highlights

    Three Months Ended (unless stated otherwise) 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 June 30, 2017 (Dollars in thousands, except per share amounts) Selected financial data from consolidated financial statements and related information Adjusted EBITDA – quarter annualized $ 755,048 $ 723,764 $ 662,8

23. Slide 23: Financial and Asset Base Highlights (continued)

    Three Months Ended (unless stated otherwise) 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 June 30, 2017 (Dollars in thousands, except annual rental revenue per occupied RSF amounts) Amounts included in funds from operations and non-revenue-enhancing capital expenditures Straight-line rent revenue $ 17,9

24. Slide 24: Key Operating Metrics

    Favorable Lease Structure (1) Same Property Net Operating Income Growth Key Operating Metrics June 30, 2017

25. Slide 25: Same Property Net Operating Income Growth

    4.7% 2.2% 1.3% 2015 2016 2Q17 YTD

26. Slide 26: Lease Structure and Rental Rate Growth

    Margins (2) Rental Rate Growth: Renewed/Re-Leased Space Stable cash flows Percentage of triple net leases 97% Increasing cash flows Percentage of leases containing annual rent escalations 95% Lower capex burden Percentage of leases providing for the recapture of capital expenditures 94%

27. Slide 27: Rental Rate Growth

    2015 2016 2Q17 YTD

28. Slide 28: Adjusted EBITDA Margins

    Adjusted EBITDA Operating 68% 72% (1) Percentages calculated based on RSF as of June 30, 2017 . (2) Represents the three months ended June 30, 2017 . Same Property Performance

29. Slide 29: Same Property Performance

    Same Property Financial Data 2Q17 YTD 2Q17 Same Property Statistical Data 2Q17 YTD 2Q17 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 $ Change % Change 2017 2016 $ Change % Change June 30, 2017 (Dollars in thousands) Percentage change over comparable period from prior year: Number

30. Slide 30: Leasing Activity

    Three Months Ended Six Months Ended Year Ended June 30, 2017 June 30, 2017 December 31, 2016 Including Straight-Line Rent Cash Basis Including Straight-Line Rent Cash Basis Including Straight-Line Rent Cash Basis Leasing Activity June 30, 2017 (Dollars are per RSF) Leasing activity: Renewed/re-lease

31. Slide 31: Contractual Lease Expirations

    Year Number of Leases RSF Percentage of Occupied RSF Annual Rental Revenue (per RSF) Percentage of Total Annual Rental Revenue Market 2017 Contractual Lease Expirations Annual Rental Revenue (per RSF) 2018 Contractual Lease Expirations Annual Rental Revenue (per RSF) Leased Negotiating/ Anticipating

32. Slide 32: Top 20 Tenants

    Tenant Remaining Lease Term in Years (1) Aggregate RSF Annual Rental Revenue (1) Percentage of Aggregate Annual Rental Revenue (1) Investment-Grade Ratings Moody’s S&P June 30, 2017 (Dollars in thousands) 79% of Top 20 Annual Rental Revenue from Investment-Grade Tenants Illumina, Inc. 13.1 891,495 $

33. Slide 33: Summary of Properties and Occupancy

    Market RSF Number of Properties Annual Rental Revenue Operating Development Redevelopment Total % of Total Total % of Total Per RSF Operating Properties Operating and Redevelopment Properties Market 6/30/17 3/31/17 6/30/16 6/30/17 3/31/17 6/30/16 June 30, 2017 (Dollars in thousands, except per RSF a

34. Slide 34: Property Listing: Greater Boston

    Market / Submarket / Address RSF Number of Properties Annual Rental Revenue Occupancy Percentage Operating Operating and Redevelopment Operating Development Redevelopment Total June 30, 2017 (Dollars in thousands) Greater Boston Cambridge/Inner Suburbs Alexandria Center ® at Kendall Square 1,648,700

35. Slide 35: Property Listing: San Francisco

    Market / Submarket / Address RSF Number of Properties Annual Rental Revenue Occupancy Percentage Operating Operating and Redevelopment Operating Development Redevelopment Total June 30, 2017 (Dollars in thousands) San Francisco Mission Bay/SoMa 409 and 499 Illinois Street (consolidated joint venture

36. Slide 36: Property Listing: San Diego

    Market / Submarket / Address RSF Number of Properties Annual Rental Revenue Occupancy Percentage Operating Operating and Redevelopment Operating Development Redevelopment Total June 30, 2017 (Dollars in thousands) San Diego Torrey Pines ARE Spectrum 165,938 170,523 — 336,461 $ 7,496 100.0 % 100.0 %

37. Slide 37: Property Listing: Seattle

    Market / Submarket / Address RSF Number of Properties Annual Rental Revenue Occupancy Percentage Operating Operating and Redevelopment Operating Development Redevelopment Total June 30, 2017 (Dollars in thousands) Seattle Lake Union 400 Dexter Avenue North 241,276 48,835 — 290,111 $ 12,619 100.0 % 1

38. Slide 38: Property Listing: Research Triangle Park

    Market / Submarket / Address RSF Number of Properties Annual Rental Revenue Occupancy Percentage Operating Operating and Redevelopment Operating Development Redevelopment Total June 30, 2017 (Dollars in thousands) Research Triangle Park Research Triangle Park Alexandria Technology Center ® – Alston

39. Slide 39: Building the Future of Life-Changing Innovation

    Ch) ALEXANDRIA. Building the Future of Life-Changing Innovation

40. Slide 40: Incremental Annual NOI from Development and Redevelopment

    (1) Represents incremental annual net operating income upon stabilization of our development and redevelopment of new Class A properties, including only our share of real estate joint venture projects. Partial deliveries of multi-tenant development projects are included in the respective period. RSF

41. Slide 41: Disciplined Management of Ground-Up Developments

    Disciplined Management of Ground-Up Developments June 30, 2017

42. Slide 42: Solid Pre-Leased Percentage of Ground-Up Developments

    SOLID PRE-LEASED PERCENTAGE of Ground-Up Developments 5 5 Commenced since January 1, 2009 . Million RSF Single Tenant 3 0 MILLION RSF Multi-tenant JOO% — 2-5 mons Pre-Leased 38% Pre-Leased Wi Pre-Leased

43. Slide 43: Sustainability

    Sustainability June 30, 2017

44. Slide 44: Sustainability: LEED Certified Projects

    (1) Upon completion of 14 in-process LEED® certified projects. (2) Completed in 2015 and 2016. Investments in Real Estate

45. Slide 45: Investments in Real Estate

    Investments in Real Estate Square Feet Consolidated Unconsolidated (1) Total June 30, 2017 (Dollars in thousands, except per SF amounts) Investments in real estate – North America: Rental properties $ 9,989,951 18,416,830 413,799 18,830,629 Development and redevelopment of new Class A Properties: 20

46. Slide 46: Recently Placed into Service Developments

    50 Binney Street 60 Binney Street 11 Hurley Street 360 Longwood Avenue 1455 and 1515 Third Street June 30, 2017 Greater Boston/Cambridge Greater Boston/Cambridge Greater Boston/Cambridge Greater Boston/Longwood Medical Area San Francisco/Mission Bay/SoMa 274,734 RSF 255,743 RSF 59,783 RSF 413,799 RS

47. Slide 47: Recently Delivered Projects (photos)

48. Slide 48: Recently Delivered Projects (photos)

49. Slide 49: Recently Delivered Projects (photos)

50. Slide 50: Recently Delivered Projects (photos)

51. Slide 51: Recently Placed into Service: San Diego and Seattle

    ARE Spectrum 10290 Campus Point Drive 5200 Illumina Way, Parking Structure 4796 Executive Drive 400 Dexter Avenue North San Diego/Torrey Pines San Diego/University Town Center San Diego/University Town Center San Diego/University Town Center Seattle/Lake Union 165,938 RSF 305,006 RSF N/A 61,755 RSF

52. Slide 52: Recently Delivered Projects (photos)

53. Slide 53: — — — — — i— =

    4 — — — — — i— =

54. Slide 54: Development Projects (photos)

55. Slide 55: Development Projects (photos)

56. Slide 56: Recently Placed into Service (continued)

    Represents projects delivered within the trailing 12 months. RSF represents the cumulative RSF that has been delivered. Development and Redevelopment of New Class A Properties: Recently Placed into Service (Trailing 12 Months) (continued)

57. Slide 57: Recently Placed into Service: Yields and Investment

    Property/Market/Submarket Our Ownership Interest Date Delivered RSF in Service Total Project Unlevered Yields Prior to 7/1/16 Placed into Service Total Average Cash Initial Stabilized Cash Basis Initial Stabilized 3Q16 4Q16 1Q17 2Q17 Leased RSF Investment June 30, 2017 (Dollars in thousands) Consoli

58. Slide 58: Projects Undergoing Construction 2017 Deliveries

    100 Binney Street 510 Townsend Street 505 Brannan Street, Phase I ARE Spectrum 400 Dexter Avenue North June 30, 2017 (Dollars in thousands) Greater Boston/Cambridge San Francisco/Mission Bay/SoMa San Francisco/Mission Bay/SoMa San Diego/Torrey Pines Seattle/Lake Union 431,483 RSF 300,000 RSF 150,000

59. Slide 59: Projects Undergoing Construction (renderings)

60. Slide 60: Projects Undergoing Construction (renderings)

61. Slide 61: am ie i

    am ie i

62. Slide 62: ra Sy

    ra Sy ]

63. Slide 63: 2017 Deliveries: Leasing Status and Yields

    Property/Market/Submarket Project RSF Percentage Project Start Occupancy In Service CIP Total Leased Negotiating Total Initial Stabilized Property/Market/Submarket Our Ownership Interest In Service CIP Cost to Complete Total at Completion Unlevered Yields Average Cash Initial Stabilized Cash Basis I

64. Slide 64: 2018 and 2019 Deliveries

    399 Binney Street 1655 and 1715 Third Street 213 East Grand Avenue 279 East Grand Avenue June 30, 2017 Greater Boston/Cambridge San Francisco/Mission Bay/SoMa San Francisco/South San Francisco San Francisco/South San Francisco 172,500 SF 580,000 SF 297,355 SF 199,000 SF Multi-tenant Uber Technologie

65. Slide 65: 2018 and 2019 Deliveries (renderings)

66. Slide 66: 2018 and 2019 Deliveries (renderings)

67. Slide 67: SHES ie

    de SHES ie

68. Slide 68: 2018 and 2019 Deliveries: Marketing Projects

    681 Gateway Boulevard 9625 Towne Centre Drive 1818 Fairview Avenue East 5 Laboratory Drive San Francisco/South San Francisco San Diego/University Town Center Seattle/Lake Union Research Triangle Park/RTP 126,971 RSF 163,648 SF 205,000 RSF 175,000 RSF Marketing Takeda Pharmaceuticals Company Ltd. Mul

69. Slide 69: 2018 and 2019 Deliveries (renderings)

70. Slide 70: 2018 and 2019 Deliveries (renderings)

71. Slide 71: 2018 and 2019 Deliveries (renderings)

72. Slide 72: 2018 and 2019 Deliveries (continued)

    Development and Redevelopment of New Class A Properties: 2018 & 2019 Deliveries (Projects Undergoing Construction, and Near-Term Projects Undergoing Marketing and Pre-Construction) (continued)

73. Slide 73: 2018 and 2019 Deliveries: Projects and Yields

    Property/Market/Submarket Dev/ Redev Project RSF Percentage Project Start (1) Occupancy (1) In Service CIP Total Leased Negotiating Total Initial Stabilized Unlevered Yields Property/Market/Submarket Our Ownership Interest In Service CIP Cost to Complete Total at Completion Average Cash Initial Stab

74. Slide 74: Intermediate Development Projects

    303 Binney Street 960 Industrial Road 825 and 835 Industrial Road Alexandria Center ® for Life Science June 30, 2017 (Dollars in thousands, except per SF amounts) Greater Boston/Cambridge San Francisco/Greater Stanford San Francisco/Greater Stanford New York/Manhattan

75. Slide 75: Intermediate Development Projects (renderings)

76. Slide 76: Intermediate Development Projects (renderings)

77. Slide 77: Intermediate Development Projects (renderings)

78. Slide 78: Intermediate Development Projects: San Diego, Seattle, Maryland

    5200 Illumina Way Campus Point Drive 1150 Eastlake Avenue 9800 Medical Center Drive San Diego/University Town Center San Diego/University Town Center Seattle/Lake Union Maryland/Rockville

79. Slide 79: Intermediate Development Projects (renderings)

80. Slide 80: Intermediate Development Projects (renderings)

81. Slide 81: Intermediate Development Projects (renderings)

82. Slide 82: Summary of Development Pipeline

    Market Property/Submarket Book Value Project SF Per SF Greater Boston 303 Binney Street/Cambridge $ 84,275 208,965 $ San Francisco 960 Industrial Road/Greater Stanford 66,625 500,000 (1) 825 and 835 Industrial Road/Greater Stanford 88,514 530,000 New York City Alexandria Center ® for Life Science/Ma

83. Slide 83: Future Development Projects by Market

    Property/Submarket Our Ownership Interest Book Value Square Footage Undergoing Construction Near-Term Development and Redevelopment Intermediate Development Future Development Total (1) June 30, 2017 (Dollars in thousands) Greater Boston Various (2) 100% $ 479,032 431,483 356,144 208,965 — 996,592 A

84. Slide 84: Construction Spending and Capital Expenditures

    Construction Spending Six Months Ended June 30, 2017 Non-Revenue-Enhancing Capital Expenditures (1) Six Months Ended June 30, 2017 Recent Average per RSF (2) Amount Per RSF Projected Construction Spending Year Ending December 31, 2017 2017 Disciplined Allocation of Capital (5) June 30, 2017 (Dollars

85. Slide 85: Capital Expenditure Notes

    (1) Excludes amounts that are recoverable from tenants, revenue-enhancing, or related to properties that have undergone redevelopment. (2) Represents the average of the five years ended December 31, 2016, and the six months ended June 30, 2017 . (3) Includes revenue-enhancing projects and non-revenu

86. Slide 86: Joint Venture Financial Information

    June 30, 2017 Noncontrolling Interest Share of Consolidated Real Estate JVs Our Share of Unconsolidated Real Estate JV Noncontrolling Interest Share of Consolidated Real Estate JVs Our Share of Unconsolidated Real Estate JV 2Q17 YTD 2Q17 2Q17 YTD 2Q17 Consolidated Real Estate Joint Ventures Property

87. Slide 87: Investments: Public/Private Mix

    Public/Private Mix (Cost) Tenant/Non-Tenant Mix (Cost) June 30, 2017 (Dollars in thousands)

88. Slide 88: Public and Private Investments

    Public Private

89. Slide 89: Investments by Type

    Investment Type Cost Net Unrealized Gains Total Number of Investments Average Cost Public $ 51,199 $ 28,171 $ 79,370 Private 345,550 — 345,550 $1.6M Total $ 396,749 $ 28,171 $ 424,920 Key Credit Metrics

90. Slide 90: Key Credit Metrics: Net Debt to Adjusted EBITDA

    Net Debt to Adjusted EBITDA (1) Net Debt and Preferred Stock to Adjusted EBITDA (1) June 30, 2017 (Dollars in millions)

91. Slide 91: Projected Net Debt to Adjusted EBITDA

    6.1x 6.2x 5.3x to 5.8x 4Q16 2Q17 4Q17 Projected

92. Slide 92: Fixed-Charge Coverage Ratio and Liquidity

    Fixed-Charge Coverage Ratio (1) Liquidity

93. Slide 93: Liquidity

    $1.8B Availability under our $1.65 billion unsecured senior line of credit $ 1,350 Remaining construction loan commitments Available-for-sale equity securities, at fair value Cash, cash equivalents, and restricted cash $ 1,758 (1) Quarter annualized.

94. Slide 94: Summary of Debt

    Summary of Debt June 30, 2017 Debt maturities chart (Dollars in millions)

95. Slide 95: Fixed-Rate and Variable-Rate Debt

    Fixed-Rate/Hedged Variable-Rate Debt Unhedged Variable-Rate Debt Total Percentage Weighted-Average Interest Rate (1) Remaining Term (in years) Fixed-rate/hedged and unhedged variable-rate debt (Dollars in thousands) Secured notes payable $ 886,922 $ 240,426 $ 1,127,348 23.6 % 3.62 % 3.1 Unsecured se

96. Slide 96: Debt Maturities and Terms

    Debt Stated Rate Weighted-Average Interest Rate (1) Maturity Date (2) Principal Payments Remaining for the Periods Ending December 31, Principal Unamortized (Deferred Financing Cost), (Discount)/Premium Total 2017 2018 2019 2020 2021 Thereafter June 30, 2017 (Dollars in thousands) Secured notes paya

97. Slide 97: Construction Loans, Covenants and Interest Rate Hedges

    Property/Market/Submarket Stated Rate Maturity Date Outstanding Balance Remaining Commitments Aggregate Commitments Debt Covenant Ratios (1) Unsecured Senior Notes Payable $1.65 Billion Unsecured Senior Line of Credit and Unsecured Senior Bank Term Loans Requirement Actual Requirement Actual Interes

98. Slide 98: Definitions and Reconciliations

    Three Months Ended 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Definitions and Reconciliations June 30, 2017 This section contains additional information for sections throughout this supplemental information package, as well as explanations of certain non-GAAP financial measures and the reasons why we

99. Slide 99: Definitions and Reconciliations (continued)

    Three Months Ended 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Definitions and Reconciliations (continued) June 30, 2017 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 pr

100. Slide 100: Definitions and Reconciliations (continued)

     Definitions and Reconciliations (continued) June 30, 2017 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

101. Slide 101: Definitions and Reconciliations (continued)

     6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Three Months Ended Six Months Ended 6/30/17 6/30/16 6/30/17 6/30/16 Definitions and Reconciliations (continued) June 30, 2017 Net cash provided by operating activities after dividends Net cash provided by operating activities after dividends includes the dedu

102. Slide 102: Definitions and Reconciliations (continued)

     Development – under construction Properties Development – placed into service after January 1, 2016 Properties Redevelopment – under construction Properties Redevelopment – placed into service after January 1, 2016 Properties Acquisitions after January 1, 2016 Properties Definitions and Reconciliati

103. Slide 103: Definitions and Reconciliations (continued)

     Three Months Ended 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Three Months Ended 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Three Months Ended Six Months Ended 2Q17 1Q17 4Q16 3Q16 2Q17 Definitions and Reconciliations (continued) June 30, 2017 Unencumbered net operating income as a percentage of total ne

Alexandria Real Estate Equities — Q2 2017 Earnings Presentation on 6ix