Alexandria Real Estate Equities, Inc. · NYSE:ARE
Alexandria Real Estate Equities — Investor Day (December 2015)
162 slides from Alexandria Real Estate Equities's investor day presentation, Dec 2, 2015
Slide 1: 2016 & Beyond: Steady and Secure Growth Investor Day
2016 & BEYOND: STEADY AND SECURE GROWTH INVESTOR DAY // DECEMBER 2, 2015 Unique Collaborative Science & Technology Campuses in Urban Innovation ClustersNYSE:ARE Building the Future of Life-Changing Innovation
Slide 2: Safe Harbor
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 2 Safe Harbor 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 Securiti
Slide 3: Contents
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 3 Contents 4 10 15 24 29 96 102 112 133 137 148 155 156 Welcome and Overview of Investor Day Alexandria’s Mission, Core Values, Edge, and Franchise Value 2015: Alexandria’s Perfo
Slide 4: Welcome and Overview of Investor Day
4 WELCOME AND OVERVIEW OF INVESTOR DAY
Slide 5: Our tenants think of our campuses as mission-critical platforms
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 5 ” “Our tenants think of our collaborative urban campuses not as mere real estate, but as mission-critical platforms that enable their success. For Alexandria, it’s about creati
Slide 6: The Alexandria Summit quote: Kathy Giusti
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 6 ” “The Alexandria Summit has had a transformative impact on the field of cancer research – not only in shaping the conversation in how the disease is treated and prevented, but
Slide 7: The Alexandria Summit quote: Steven Keating
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 7 ” “The Alexandria Summit was an incredible event highlighting the digital, personalized, and participant-driven revolution happening in healthcare. It was an amazing honor to a
Slide 8: 1994 to 2015: From garage startup to campuses
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 8 1994 2015 Garage Startup $19M Seed Capital Unique Collaborative Science and Technology Campuses in Urban Innovation Clusters $10.8B Total Market Cap 31.5M RSF Asset Base 95% Oc
Slide 9: Management, Strategy, Capital
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 9 Management Capital Strategy Stable, focused, and differentiated business strategy Strategy Highly experienced management with fully integrated expert regional teams Management
Slide 10: Alexandria's Mission, Core Values, Edge, and Franchise Value
10 ALEXANDRIA’S MISSION, CORE VALUES, EDGE, AND FRANCHISE VALUE
Slide 11: Alexandria's Mission
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 11 Alexandria’s Mission Alexandria develops dynamic urban cluster campuses and vibrant ecosystems that enable and inspire the world’s most brilliant minds and innovative companie
Slide 12: Alexandria's Core Values
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 12 Alexandria’s Core Values that innovative and dynamic ecosystems enable brilliant minds to thrive. in the power of place and a culture of creativity and collaboration. that int
Slide 13: Alexandria's Competitive Advantage
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 13 Alexandria’s Competitive Advantage Our highly experienced and fully integrated team has broad and unique expertise. Our relationships with key influencers in our ecosystem mak
Slide 14: Franchise Value: Opportunity for NAV Enhancement
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 14 Alexandria’s Franchise Value: Opportunity for NAV Enhancement A LE X A N D R IAOur Value ” “An economic franchise arises from a product or service that: (1) is needed or desir
Slide 15: 2015: Alexandria's Performance Scorecard
15 2015: ALEXANDRIA’S PERFORMANCE SCORECARD
Slide 16: Growth in NAV, FFO & Dividends Per Share
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 16 $74.00 $103.00 January 3, 2014 November 20, 2015 Quarterly Common Stock Dividends Per ShareFFO Per Share !"#NAV Per Share !$# $4.40 $5.25 2013 2015 Projected $0.68 $0.77 4Q13
Slide 17: Growth in 2015 Guidance for FFO Per Share
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 17 Growth in 2015 Guidance for FFO Per Share (1) Represents date of guidance for 2015 FFO per share. $5.20 $5.22 $5.24 $5.25 December 3, 2014 April 27, 2015 July 27, 2015 Novembe
Slide 18: Strong Core Driving Steady Growth in FFO Per Share
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 18 Strong Core Driving Steady and Secure Growth in FFO Per Share Meet/Exceed Initial Guidance SAME PROPERTY NOI GROWTH (CASH BASIS) 7%5% SAME PROPERTY NOI GROWTH 2.5%0.5% RENTAL
Slide 19: 2015: Record Leasing Year
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 19 2015: Record Leasing Year Through September 30, 2015 YTD 3Q15. 4.0MLEASED RSF HIGHEST ANNUAL LEASING VOLUME
Slide 20: 2015: Asset Sales at 4.7% Cash Cap Rate
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 20 2015: Asset Sales at 4.7% Cash Cap Rate (1) Cash capitalization rate represents a weighted average for all high-value core operating property dispositions completed through De
Slide 21: Disciplined Allocation of Capital to Urban Submarkets
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 21 2015: Continued Disciplined Allocation of Capital to High-Value Urban Submarkets Represents 2015 allocation of capital for actual and projected construction and completed acqu
Slide 22: Communications & Reporting Excellence
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary – Do Not Copy or Distr ibute. All Rights Reserved © 2015 22 ALEXANDRIA REAL ESTA E QUITIES, INC. Confidential nd Proprietary – Do Not opy or ribu e. All Rights Reserved © 2015 DEAN SHIGENAGA Executive Vice President, Chief Financial
Slide 23: 2015: A Historic Year
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary – Do Not Copy or Distr ibute. All Rights Reserved © 2015 23 ALEXANDRIA REAL ESTA E QUITIES, INC. Confidential nd Proprietary – Do Not opy or ribu e. All Rights Reserved © 2015 2015A Historic Year Land Deal of the Year 4.0M LEASED RSF
Slide 24: 2016-2017-2018: Alexandria's Investment Thesis
24 2016-2017-2018: ALEXANDRIA’S INVESTMENT THESIS
Slide 25: Best-in-Class, Unique Urban Office REIT
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 25 Best-in-Class, Unique Urban Office REIT UNIQUE COLLABORATIVE SCIENCE AND TECHNOLOGY CAMPUSES IN URBAN INNOVATION CLUSTERS CLASS A ASSETS AND AAA LOCATIONS INTERNAL GROWTH Favo
Slide 26: 2016: Solid Macro & Micro Fundamentals
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 26 “ ” 2016: Solid Macro & Micro Fundamentals STRONG ASSET VALUATIONS FAVORABLE INTEREST RATE ENVIRONMENT FAVORABLE RENTAL RATE TRENDS HISTORICALLY HIGH DEMAND VERY STRONG OCCUPA
Slide 27: What Do Our Investors Want to See for Alexandria?
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 27 What Do Our Investors Want to See for Alexandria? Growth in NAV and FFO Per Share “Beat & Raise” Guidance A “Clean” Operating Story Disciplined Allocation of Capital Effective
Slide 28: Alexandria's Investment Thesis: 2016
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 28 Alexandria’s Investment Thesis: 2016 Continuing Strong & Stable Internal Growth: Steady & Secure Property Level NOI Growth Disciplined Allocation of Capital to Best Urban Clus
Slide 29: Demand for Alexandria's Urban Campuses and Class A Buildings
29 DEMAND FOR ALEXANDRIA’S URBAN CAMPUSES AND CLASS A BUILDINGS
Slide 30: 2015 Leasing: Capitalizing on Historic High Demand
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 30 2015 Leasing: Capitalizing on Historic High Demand YTD 3Q15. (1) Includes non-cluster markets, Canada, and Asia. 1,526,439 RSF 171,491 RSF 729,419 RSF 404,254 RSF 809,476 RSF
Slide 31: Manageable Annual Contractual Lease Expirations
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 31 Manageable Annual Contractual Lease Expirations As of 3Q15. (1) Excludes 16 month-to-month leases for 37,054 RSF. Year of Lease Expiration Number of Leases RSF Percentage of A
Slide 32: 2016 Contractual Lease Expirations: 7.9% of Total RSF
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 32 2016 Contractual Lease Expirations: 7.9% of Total RSF As of 3Q15. (1) Represents two leases at 3115/3215 Merryfield Row with contractual expirations in January and August 2016
Slide 33: Manageable Lease Expirations in 2016
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 33 Manageable Lease Expirations in 2016 (1) Represents contractual lease expiration of 81,441 RSF, of which 61,618 RSF has been leased. (2) Actively marketing with interest from
Slide 34: 2016 Lease Expirations: 3115/3215 Merryfield Row
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 34 2016 Contractual Lease Expirations: 3115/3215 Merryfield Row, Torrey Pines (1) Rendering of single-tenancy build-to-suit development project. 158,645 RSF // Lease Expirations
Slide 35: 2016 Lease Expirations: 10300 Campus Point Drive
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 35(1) Short-term lease extension into January 2016 anticipated to allow tenant time to relocate into 10290 Campus Point Drive in December 2015. 2016 Contractual Lease Expirations
Slide 36: Tenant Perspective in Today's Market Environment
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 36 Tenant Perspective in Today’s Market Environment PRIORITIZING URBAN LOCATIONS COLLABORATIVE URBAN CAMPUSES AND CLASS A BUILDINGS INNOVATIVE DESIGN AND LARGE OPEN FLOOR PLATES
Slide 37: Prioritizing Urban Locations: Alexandria Technology Square
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 37 PRIORITIZING URBAN LOCATIONS Greater Boston: Alexandria Technology Square®
Slide 38: Tenant Perspective: Rental Rate Comparison
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 38 Tenant Perspective: Rental Rate Comparison Source: CBRE (Cambridge), Newmark Grubb Knight Frank (Suburban). PER RSF CAMBRIDGE PER RSF SUBURBAN “ ” It’s cheaper out there, and
Slide 39: Urban Campuses: Alexandria Center for Life Science NYC
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 39 URBAN CAMPUSES New York City: Alexandria Center® for Life Science
Slide 40: Urban Campuses: Alexandria Center for Life Science NYC
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 40 URBAN CAMPUSES New York City: Alexandria Center® for Life Science
Slide 41: Urban Campuses: Alexandria Center for Life Science NYC
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 41 URBAN CAMPUSES New York City: Alexandria Center® for Life Science
Slide 42: Urban Campuses: Alexandria Center for Life Science NYC
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 42 URBAN CAMPUSES New York City: Alexandria Center® for Life Science
Slide 43: Innovative Design: Townsend Street
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 43 INNOVATIVE DESIGN San Francisco: 510 Townsend Street
Slide 44: Large Floor Plates: Townsend Street
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 44 LARGE FLOOR PLATES San Francisco: 510 Townsend Street
Slide 45: Creative Amenities: Illinois Street
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 45 San Francisco: 499 Illinois Street CREATIVE AMENITIES
Slide 46: Creative Amenities: 10300 Campus Point Drive
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 46 CREATIVE AMENITIES San Diego: 10300 Campus Point Drive
Slide 47: Alexandria's Key Urban Innovation Clusters
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 47 Alexandria’s Key Urban Innovation Clusters As of 3Q15. 5.7M RSF $218.5M ABR 813K RSF $58.5M ABR 2.2M RSF $50.2M ABR 1.0M RSF $19.4 ABR 3.9M RSF $99.6M ABR 1.0M RSF $32.2M ABR3
Slide 48: San Francisco at the Intersection of Science and Technology
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 48 SAN FRANCISCO AT THE INTERSECTION OF SCIENCE AND TECHNOLOGY
Slide 49: San Francisco: Market Sentiment vs. Fundamentals
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 49 San Francisco Region: Market Sentiment vs. Fundamentals (1) Source: Cushman & Wakefield, November 2015. San Francisco is a region of boom and bust and we are in the later inni
Slide 50: San Francisco: On-the-Ground Reality for Alexandria
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 50 San Francisco: On-the-Ground Reality for Alexandria Alexandria has exposure to unicorn technology tenants Does Alexandria have the underwriting skills to understand technology
Slide 51: San Francisco: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 51 San Francisco: Solid Occupancy As of 3Q15. OCCUPANCY SAN FRANCISCO
Slide 52: Unique Urban Innovation Clusters: Mission Bay & SoMa
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 52 Alexandria’s Unique Collaborative Urban Innovation Clusters: Mission Bay & SoMa WARRIORS SPORTS AND ENTERTAINMENT CENTER ! UCSF MEDICAL CENTER UCSF RESEARCH CAMPUS RESIDENTIAL
Slide 53: San Francisco: Strong Performance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 53 729K San Francisco: Alexandria’s Strong Performance in Leasing As of 3Q15.
Slide 54: San Francisco: High-Quality Demand in 4Q15 (Science)
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 54 San Francisco: High-Quality Demand in 4Q15 SCIENCE DEMAND IN SAN FRANCISCO MARKET SIZE RSF DEMAND ENTITY TYPE 400,000 Large-Cap Private Tech/Biotechnology New 400,000 Multinat
Slide 55: San Francisco: High-Quality Demand in 4Q15 (Tech)
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 55 San Francisco: High-Quality Demand in 4Q15 Source: Newmark Cornish & Carey. TECH DEMAND IN SAN FRANCISCO MARKET SIZE RSF DEMAND ENTITY TYPE 1.2M Large-Cap Technology Expansion
Slide 56: San Francisco: Consistent Outperformance in Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 56 San Francisco: Consistent Outperformance in Occupancy Market Source: Kidder Mathews and Newmark Cornish & Carey. Alexandria’s San Francisco Occupancy 2010 – 3Q15 95.8% 96.7% 9
Slide 57: San Francisco: Consistent Outperformance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 57 San Francisco: Consistent Outperformance in Leasing Source (HCP and BMR): Jones Lang LaSalle. New Lease Transactions in Alexandria’s San Francisco Submarkets 2008 – 3Q15 3,590
Slide 58: San Francisco: Increase in Annualized Base Rent
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 58 San Francisco: Increase in Annualized Base Rent (1) Represents ABR as of 3Q15, pro-forma for the estimated ABR from the completion of our 100% leased development projects curr
Slide 59: San Francisco: Strong Rental Rate Growth
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 59 Market Rent Increase from 2013 to 2015 San Francisco: Strong Rental Rate Growth Source: Based upon Alexandria’s leasing activity and various market sources. $48.00 $54.00 $64.
Slide 60: San Francisco: Constrained Supply in Mission Bay and SoMa
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 60 San Francisco: Constrained Supply & Limited Development Inventory in Mission Bay and SoMa Prop M: In November 1986, San Francisco passed a citizen-sponsored initiative that li
Slide 61: Greater Boston: Kendall Square
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 61 GREATER BOSTON KENDALL SQUARE MOTTO: “THE FUTURE LIVES HERE”
Slide 62: Greater Boston: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 62 Greater Boston: Solid Occupancy As of 3Q15. OCCUPANCY GREATER BOSTON
Slide 63: Kendall Square & East Cambridge Clusters
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 63 Alexandria’s Unique Collaborative Urban Innovation Clusters: Kendall Square & East Cambridge HARVARD UNIVERSITY MASSACHUSETTS INSTITUTE OF TECHNOLOGY ALEXANDRIA TECHNOLOGY SQU
Slide 64: Greater Boston: Strong Performance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 64 1.5M Greater Boston: Alexandria’s Strong Performance in Leasing As of 3Q15.
Slide 65: Greater Boston: High-Quality Demand in 4Q15
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 65 Greater Boston: High-Quality Demand in 4Q15 Source: CBRE, Transwestern/RBJ and Cushman & Wakefield. TOTAL DEMAND IN CAMBRIDGE MARKET SIZE RSF DEMAND ENTITY TYPE 400,000 Large-
Slide 66: Greater Boston: Consistent Outperformance in Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 66 Greater Boston: Consistent Outperformance in Occupancy Market Source: CBRE and CoStar. (1) The decline from 2014 is primarily driven by a 128,325 RSF full-building lease that
Slide 67: Greater Boston: Consistent Outperformance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 67 Greater Boston: Consistent Outperformance in Leasing Source (BMR, FCE, and MIT): CBRE/New England. New Lease Transactions in Alexandria’s Greater Boston Submarkets 2008 – 3Q15
Slide 68: Greater Boston: Increase in Annualized Base Rent
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 68 Greater Boston: Increase in Annualized Base Rent As of 3Q15. (1) Represents ABR as of 3Q15, pro-forma for the estimated ABR from the completion of our 100% leased development
Slide 69: Cambridge: Strong Rental Rate Growth
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 69 Market Rent Increase from 2013 to 2015 Greater Boston: Cambridge’s Strong Rental Rate Growth Source: Based upon Alexandria’s leasing activity and various market sources. $55.8
Slide 70: Cambridge: Constrained Supply & Limited Development Inventory
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 70 Greater Boston: Constrained Supply & Limited Development Inventory in Cambridge (1) 100 Binney Street consisted of 431,483 RSF of which 252,022 RSF was leased and 171,853 RSF
Slide 71: New York City: Cultural Hub and Innovation Epicenter
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 71 NEW YORK CITY CULTURAL HUB AND INNOVATION EPICENTER
Slide 72: New York City: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 72 New York City: Solid Occupancy As of 3Q15. OCCUPANCY NEW YORK CITY
Slide 73: Alexandria Center for Life Science – New York City
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 73We hold an option to ground lease a parcel supporting the future ground-up development of approximately 420,000 SF at the Alexandria Center ® for Life Science. We have begun di
Slide 74: New York City: Strong Performance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 74 171KRSF LEASED IN 2015 New York City: Alexandria’s Strong Performance in Leasing As of 3Q15.
Slide 75: San Diego: Genomics and Biotechnology Powerhouse
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 75 SAN DIEGO GENOMICS AND BIOTECHNOLOGY POWERHOUSE
Slide 76: San Diego: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 76 San Diego: Solid Occupancy As of 3Q15. OCCUPANCY SAN DIEGO
Slide 77: Unique Urban Innovation Clusters: Torrey Pines
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 77 Alexandria’s Unique Collaborative Urban Innovation Clusters: Torrey Pines SANFORD CONSORTIUM FOR REGENERATIVE MEDICINE THE SCRIPPS RESEARCH INSTITUTE SANFORD BURNHAM PREBYS ME
Slide 78: Unique Urban Innovation Clusters: University Town Center
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 78 Alexandria’s Unique Collaborative Urban Innovation Clusters: University Town Center ALEXANDRIA CENTER® FOR LIFE SCIENCE AT CAMPUS POINTE ARE ESPLANADE ARE TOWNE CENTRE 5200 IL
Slide 79: San Diego: Strong Performance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 79 809K San Diego: Alexandria’s Strong Performance in Leasing As of 3Q15.
Slide 80: San Diego: High-Quality Demand in 4Q15
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 80 San Diego: High-Quality Demand in 4Q15 Source: Cushman & Wakefield. TOTAL DEMAND IN SAN DIEGO MARKET SIZE RSF DEMAND ENTITY TYPE 200,000 Multinational Pharmaceutical Expansion
Slide 81: San Diego: Consistent Outperformance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 81 San Diego: Consistent Outperformance in Leasing Source (BMR and HCP): Jones Lang LaSalle. New Lease Transactions in Alexandria’s San Diego Submarkets 2Q10 – 3Q15 2,836,000 953
Slide 82: Seattle: Driving Science and Tech Innovation
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 82 SEATTLE CLOUD CITY – DRIVING SCIENCE AND TECH INNOVATION
Slide 83: Seattle: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 83 Seattle: Solid Occupancy As of 3Q15. OCCUPANCY SEATTLE
Slide 84: Unique Urban Innovation Clusters: Lake Union
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 84 SEATTLE CANCER CARE ALLIANCE FRED HUTCHINSON CANCER RESEARCH CENTER INSTITUTE FOR SYSTEMS BIOLOGY BILL & MELINDA GATES FOUNDATION SEATTLE BIOMEDICAL RESEARCH INSTITUTE Alexand
Slide 85: Seattle: Strong Performance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 85 133K Seattle: Alexandria’s Strong Performance in Leasing As of 3Q15.
Slide 86: Seattle: High-Quality Demand in 4Q15
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 86 Seattle: High-Quality Demand in 4Q15 Source: Multiple Brokers. TOTAL DEMAND IN LAKE UNION MARKET SIZE RSF DEMAND ENTITY TYPE 250,000 Large-Cap Technology Expansion 200,000 Tec
Slide 87: Maryland: National Research Laboratories and Institutions
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 87 MARYLAND NATIONAL RESEARCH LABORATORIES AND INSTITUTIONS
Slide 88: Maryland: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 88 Maryland: Solid Occupancy As of 3Q15. OCCUPANCY MARYLAND
Slide 89: Innovation Clusters: Maryland
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 89 NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY JOHNS HOPKINS UNIVERSITY MONTGOMERY COUNTY CAMPUS SHADY GROVE LIFE SCIENCES CENTER J. CRAIG VENTER INSTITUTE NATIONAL CANCER INS
Slide 90: Maryland: Strong Performance in Leasing
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 90 404K Maryland: Alexandria’s Strong Performance in Leasing As of 3Q15.
Slide 91: Maryland: High-Quality Demand in 4Q15
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 91 Maryland: High-Quality Demand in 4Q15 Source: Scheer Partners. TOTAL DEMAND IN MARYLAND MARKET SIZE RSF DEMAND ENTITY TYPE 143,000 Biotechnology Expansion 40,000 Healthcare Ne
Slide 92: Research Triangle Park: Leader in AgTech Innovation
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 92 RESEARCH TRIANGLE PARK THE LEADER IN AGTECH INNOVATION
Slide 93: Research Triangle Park: Solid Occupancy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 93 Research Triangle Park: Solid Occupancy As of 3Q15. OCCUPANCY RESEARCH TRIANGLE PARK
Slide 94: Innovation Clusters: Research Triangle Park
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 94 DUKE UNIVERSITY U.S. ENVIRONMENTAL PROTECTION AGENCY ALEXANDRIA CENTER® FOR SCIENCE, TECHNOLOGY AND AGRICULTURE RESEARCH TRIANGLE PARK FOUNDATION OF NORTH CAROLINA THE UNIVERS
Slide 95: Research Triangle Park: High-Quality Demand in 4Q15
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 95 Research Triangle Park (RTP): High-Quality Demand in 4Q15 500K RSF TOTAL DEMAND IN RTP 9.5M RSF MARKET SIZE RSF DEMAND ENTITY TYPE 200,000 Biotechnology Relocation/ Expansion
Slide 96: Current Macro Environment: Institutional Demand for Alexandria's Assets
96 CURRENT MACRO ENVIRONMENT: INSTITUTIONAL DEMAND FOR ALEXANDRIA’S ASSETS
Slide 97: Record Inflows to U.S. Commercial Real Estate
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 97 Record Inflows to U.S. Commercial Real Estate Applies Downward Pressure to Cap Rates (1) Souce: Cross Border Capital Tracker, Real Capital Analytics, through August 2015. $0 $
Slide 98: Strategic Relationship with TIAA-CREF: 225 Binney Street
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 98 SALE OF 70% INTEREST Closing in December 2015 $190M SALE PRICE(1) 4.5% CASH CAP RATE $101M VALUE-CREATION(2) 14.1% IRR (1) Represents the sale of a 70% partial interest. (2) B
Slide 99: Strategic Relationship with TIAA-CREF: 1500 Owens Street
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 99(1) Represents the sale of a 49.9% partial interest.(2) Based upon value of 100% of the property. Strategic Relationship with TIAA-CREF 1500 Owens Street, Mission Bay SALE OF 4
Slide 100: Strategic Relationship with Institutional Investor: 409/499 Illinois
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 100 Strategic Relationship with a High-Quality Institutional Investor 409/499 Illinois, Mission Bay SALE OF PARTIAL INTEREST Closing in December 2015 TRANSACTION IN PROCESS
Slide 101: Best-in-Class Assets Attract Institutional Investors
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 101 Best-in-Class Assets Attract Institutional Investors ENTITIES INVOLVED IN RECENT OFFICE/LAB TRANSACTIONS AFIAA (Swiss Fund) American Healthcare Investors American Realty Capi
Slide 102: Internal Growth: Strength of Core
102 INTERNAL GROWTH: STRENGTH OF CORE
Slide 103: High-Quality, Stable & Increasing Cash Flows
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 103 High-Quality, Stable & Increasing Cash Flows Investment-Grade Tenants 53% Of ARE’s Total ABR Class A Assets In AAA Locations 75% Of ARE’s Total ABR Recovery of Expenses 96% T
Slide 104: Steady Cash NOI Growth Illustration
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 104 Steady Cash NOI Growth Illustration STEADY CASH NOI GROWTH 5%+ ILLUSTRATION Cash NOI Growth Illustration Lease Renewals & Re-Leasing Early Lease Renewals Occupancy Same Prope
Slide 105: Same Property Cash NOI Growth Outperforms Office REITs
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 105 Strong Same Property Cash NOI Growth That Consistently Outperforms Office REITs (1) Represents average cash NOI growth from 2007 through 3Q15. (2) As of 3Q15. (3) Represents
Slide 106: Strong Leasing Volume & Rental Rate Growth
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 106 1,583 2,161 1,864 2,744 3,407 3,281 3,645 2,769 3,960 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 0% 10% 20% 30% 2007 2008 2009 2010 2011 2012 2013 2014 3Q15 YTD RS
Slide 107: Consistently Strong Leasing Volume in Strong Rental Environment
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 107 Consistently Strong Leasing Volume in Strong Rental Rate Environment (1) Includes lease renewals, re-leasing, and leasing of vacant spaces. (2) As of December 31 of the prior
Slide 108: Top Renewed/Re-Leased Space with Rental Rate Increases
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 108 2015: Top Renewed/Re-Leased Space with Significant Rental Rate Increases YTD 3Q15. (1) Average rental rates increased $5.92 per RSF or 19.6% including straight-line rent and
Slide 109: Increases in Cash Rental Rates on Lease Renewals
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 109 Greater Boston 75% San Francisco 17% San Diego 8% 2015 Increases in Cash Rental Rates on Lease Renewals & Re-leasing of Space Driven by Demand for Urban Campuses Key Urban Ca
Slide 110: Steady Occupancy Outperforms Office REITs
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 110 Steady Occupancy That Consistently Outperforms Office REITs (1) Average occupancy of operating properties in North America as of December 31 for the last 10 years. (2) Repres
Slide 111: Solid EBITDA Margins Outperform Office REITs
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 111 Solid EBITDA Margins That Consistently Outperforms Office REITs (1) Represents YTD 3Q15. (2) Represents average EBITDA margins of companies included in the NAREIT Equity Offi
Slide 112: External Growth: Highly Leased Development and Redevelopment
112 EXTERNAL GROWTH: HIGHLY LEASED DEVELOPMENT AND REDEVELOPMENT
Slide 113: Strategic Optionality for External Growth
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 113 Strategic Optionality for External Growth Pursuit of significant additional entitlement on existing assets ENTITLEMENTS ACQUISITIONS Development opportunities, in-place cash
Slide 114: Ground-Up Developments Commenced & Delivered Since 2009
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 114 Ground-Up Developments Commenced & Delivered in North America Since January 1, 2009 ($ in thousands) (1) In August 2015, ARIAD Pharmaceuticals, Inc. (“ARIAD”) entered into a
Slide 115: Pipeline Projects Creating Growth in NOI & NAV
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 115 Pipeline Development & Redevelopment Projects Creating Significant Growth in NOI & NAV As of 3Q15. 4Q16 2017/2018 TOTAL Significant Incremental Annual NOI $ 75-80M $ 105-110M
Slide 116: Highly Leased Projects to Be Placed into Service by 4Q16
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 116 Highly Leased Projects to Be Placed into Service by 4Q16 As of 3Q15. (1) Represents incremental annual NOI upon stabilization, including our share of partial ownership. $75-8
Slide 117: Highly Leased Projects to Be Placed into Service by 4Q16 (detail)
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 117 Highly Leased Projects to Be Placed into Service by 4Q16 As of 3Q15. (1) Stabilized occupancy in late 4Q16. Property/ Market/Submarket ARE’s Ownership Interest Dev/ Redev Lea
Slide 118: 430 East 29th Street, New York City
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 118As of 3Q15(1) Represents the total of 350,727 RSF in service and 67,912 RSF under construction. 430 East 29th Street, New York City Development Project $463M COST AT COMPLETIO
Slide 119: 5200 Illumina Way, Building 6, San Diego
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 119As of 3Q15. 5200 Illumina Way, Building 6, UTC, San Diego Development Project $69.9M COST AT COMPLETION 295,609 RSF Targeting LEED Silver 8.4% 7.0% (Cash) YIELD
Slide 120: 50 Binney Street, Cambridge
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 120As of 3Q15.(1) Represents combined yields and construction costs for 50/60 Binney Street. 50 Binney Street, Cambridge, Greater Boston Development Project $500M COST AT COMPLET
Slide 121: 60 Binney Street, Cambridge
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 121As of 3Q15.(1) Represents combined yields and construction costs for 50/60 Binney Street. 60 Binney Street, Cambridge, Greater Boston Development Project $500M COST AT COMPLET
Slide 122: 3013/3033 Science Park Road, San Diego
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 122As of 3Q15.(1) Represents the total of 102,938 RSF in service and 63,000 RSF under construction. 3013/3033 Science Park Road, Torrey Pines, San Diego Development Project $105M
Slide 123: 360 Longwood Avenue, Greater Boston
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 123 As of 3Q15. (1) Represents the total of 259,859 RSF in service and 153,677 RSF under construction. (2) Represents ARE’s 27.5% share of cost at completion. 360 Longwood Avenue
Slide 124: 10290 Campus Point Drive, San Diego
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 124As of 3Q15. 10290 Campus Point Drive, UTC, San Diego Acquisition & Redevelopment Project $241M COST AT COMPLETION 304,326 RSF Targeting LEED Gold 7.0% 6.8% (Cash) YIELD
Slide 125: Visible Growth Pipeline: Projects for 2017 & 2018
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 125 Visible Growth Pipeline: Projects to Be Placed into Service in 2017 & 2018 As of 3Q15. (1) Represents incremental annual NOI upon stabilization, including our share of partia
Slide 126: Visible Growth Pipeline: Projects for 2017 & 2018 (detail)
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 126 Visible Growth Pipeline: Projects to Be Placed into Service in 2017 & 2018 As of 3Q15. (1) We expect to place into service 161,433 RSF, or 56% of project, in 1Q17. (2) Repres
Slide 127: 510 Townsend Street, San Francisco
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 127As of 3Q15. 510 Townsend Street, SoMa, San Francisco Development Project $238M COST AT COMPLETION 300,000 RSF Targeting LEED Platinum 7.2% 7.0% (Cash) YIELD
Slide 128: 100 Binney Street, Cambridge
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 128As of 3Q15.(1) The design and budget of this project are in process, and the estimated project costs with related yields will be disclosed in the future. 100 Binney Street, Ca
Slide 129: 505 Brannan Street, San Francisco
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 129 505 Brannan Street, SoMa, San Francisco Development Project As of 3Q15. (1) We will commence construction of Phase 1 aggregating 150,000 RSF in 1Q16. Phase 2 aggregating 165,
Slide 130: 400 Dexter Avenue North, Seattle
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 130As of 3Q15.(1) The design and budget of this project are in process, and the estimated project costs with related yields will be disclosed in the future. 400 Dexter Avenue Nor
Slide 131: 1455/1515 Third Street, San Francisco
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 131 1455/1515 Third Street, Mission Bay, San Francisco Development Project As of 3Q15. (1) The design and budget of this project are in process, and the estimated project costs w
Slide 132: Visible Growth Pipeline: Future Projects
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 132 Visible Growth Pipeline: Future Projects Property Market/Submarket ARE’s Ownership Interest Project Square Feet Alexandria Technology Square® – Greater Boston/Cambridge 100%
Slide 133: Effective Management of Leverage During Historic High Demand
133 EFFECTIVE MANAGEMENT OF LEVERAGE DURING HISTORIC HIGH DEMAND AND RENTAL RATE ENVIRONMENT
Slide 134: Considerations During Period of Historic High Demand
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 134 Considerations During Period of Historic High Demand & Rental Rate Environment Limited Supply Optimal Fiscal Environment Monetization Existing Value-Creation Opportunity Stro
Slide 135: Monetization of Non-Income-Producing Land
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 135 Monetization of Non-Income-Producing Land to Meet Historic High Demand & Rental Rates Strategic decision to pursue lease-up and commencement of development of Binney Street c
Slide 136: Accelerated Timing of NAV Growth Related to Binney Street
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 136 Accelerated Timing of NAV Growth Related to Binney Street Development $20 $45 $70 $95 $120 4Q14 4Q15 4Q16 4Q17 Goal 5.5x 6.0x 6.5x 7.0x 7.5x 7.2x 6.0x Decrease in leverage re
Slide 137: Flexible Balance Sheet Enabling Solid Future Growth
137 FLEXIBLE BALANCE SHEET ENABLING SOLID FUTURE GROWTH
Slide 138: Financial Strategy: Disciplined Capital Allocation
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 138 Financial Strategy: Disciplined Allocation of Capital & Balance Sheet Management ALLOCATE CAPITAL TO CLASS A ASSETS LOCATED IN UNIQUE COLLABORATIVE SCIENCE AND TECHNOLOGY CAM
Slide 139: Continuous Improvement in Credit Rating Criteria
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 139 Continuous Improvement in Our Credit Rating Criteria Will Drive Reduction in Its Cost of Capital MOODY’S REPORT DATED CREDIT RATING CRITERIA AUGUST 12, 2011 OCTOBER 26, 2015
Slide 140: Access to Diverse Sources of Capital
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 140 Access to Diverse Sources of Capital As of 3Q15. (1) Based upon guidance issued on November 2, 2015. (2) Represents cash flows from operating activities after dividends. (3)
Slide 141: Asset Sales Strategy
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 141 Asset Sales Strategy Non-Core Operating Assets Low Cap Rate Operating Assets Recycling capital from high-value assets (via sale of partial interest to high-quality institutio
Slide 142: Disciplined Approach to Funding
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 142 Disciplined Approach to Funding As of 3Q15. (1) Represents the mid-point of our 2015 guidance range for net cash provided by operating activities after dividends. (2) Represe
Slide 143: Leverage Neutral Funding of Growth
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 143 Leverage Neutral Funding of Growth with Long-Term Debt Through Solid Growth in EBITDA As of 3Q15. 2014 YTD 3Q15 Annualized Significant EBITDA Growth $ 54M $ 68M 4Q15 Net Debt
Slide 144: Prudent Laddering of Debt Maturities
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 144 Prudent Laddering of Debt Maturities & Solid Weighted Average Remaining Term of 5.6 Years As of September 30, 2015 and pro-forma for repayment of $76 million secured note pay
Slide 145: Solid Credit Metrics & Liquidity
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 145 $657 $1,800 $122 $855 3Q15 4Q15 Projected Solid Credit Metrics & Liquidity (1) Quarter annualized. (2) For the three months ended September 30, 2015. (3) Represents pro forma
Slide 146: Disciplined Management of Value-Creation Pipeline & Variable-Rate Debt
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 146 Disciplined Management of Value-Creation Pipeline & Variable-Rate Debt (1) As a percentage of gross investments in real estate. (2) As a percentage of total debt. (3) Higher
Slide 147: Growth in Cash Flows Support Growth in Dividends
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 147 Growth in Cash Flows Support Growth in Common Stock Dividends (1) Represents the sum of quarterly dividends declared during each calendar year, except for 2015, which represe
Slide 148: 2016 Guidance
Building the Future of GHALEXAND RIA | Peo ere sice 2016 GUIDANCE
Slide 149: 2016 FFO Per Share Guidance Range
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 149 2016 FFO Per Share Guidance Range (1) Range of 20 cents per share represents +/- 1.8% from $5.51 mid-point of range of guidance for 2016 FFO per share. $5.41-$5.61(1) FFO PER
Slide 150: 2016 Key Operating Assumptions
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 150 2016 Key Operating Assumptions (1) For operating properties in North America as of 4Q16. (2) On lease renewals and re-leasing of space. OCCUPANCY(1) 96.5%-97.1% SAME PROPERTY
Slide 151: Continuing Increases in Cash Rental Rates
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 151 Continuing Increases in Cash Rental Rates on Lease Renewals & Re-leasing of Space Key Urban Campus Locations Drive Cash Rental Rate Growth 37% 28% 29% 5% 1% Greater Boston Sa
Slide 152: 2016 Guidance: Assumptions
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 152 2016 Guidance: Assumptions (in millions) Low High Straight-Line rents $ 51 $ 56 G&A expenses $ 59 $ 64 Interest: Capitalization of interest $ 45 $ 55 Interest expense $ 108 $
Slide 153: 2016 Sources & Uses of Capital
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 153 2016 Sources & Uses of Capital (in millions) Low High Sources of Capital: Net cash provided by operating activities after dividends $ 115 $ 135 Incremental debt 305 285 Asset
Slide 154: 2016 Incremental Debt
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 154 2016 Incremental Debt (in millions) Low High Issuance of unsecured senior notes payable $ 400 $ 550 Borrowings under secured construction loans 175 225 Repayments of secured
Slide 155: Q&A
Building the Future of Life-Changing Innovation GD ALEXANDRIA. Q&A
Slide 156: Appendix
Building the Future of GHALEXAND RIA | Peo ere sice APPENDIX
Slide 157: Appendix: Non-GAAP Measures
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 157 Appendix: Non-GAAP Measures (1) Calculated in accordance with standards established by the Board of Governors of the NAREIT in its April 2002 White Paper and related implemen
Slide 158: Appendix: Non-GAAP Measures (Unencumbered NOI, FFO)
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 158 Appendix: Non-GAAP Measures Nine Months Ended Unencumbered NOI (in thousands) 9/30/2015 Unencumbered NOI $ 341,666 Encumbered NOI 88,722 NOI from continuing operations $ 430,
Slide 159: Appendix: Non-GAAP Measures (Adjusted EBITDA)
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 159 Appendix: Non-GAAP Measures Adjusted EBITDA (in thousands) 3Q15 YTD 3Q15 4Q14 2014 2013 2012 2011 2010 2009 2008 2007 Net income loss $ 39,699 $ 103,137 $ (6,030) $106,778 $1
Slide 160: Appendix: Net Debt to Adjusted EBITDA, Fixed Charge Coverage
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 160 Appendix: Non-GAAP Measures Three Months Ended Three Months Ended Net debt to adjusted EBITDA 3Q15 4Q14 Fixed charge coverage ratio 3Q15 4Q14 Secured notes payable: Adjusted
Slide 161: Alexandria's Senior Management
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 161 Alexandria’s Senior Management Jennifer Banks General Counsel 18 years of experience Peter Moglia Chief Investment Officer 24 years of experience 25+ AVERAGE SENIOR MANAGEMEN
Slide 162: Alexandria's Regional Market Directors
ALEXANDRIA REAL ESTATE EQUITIES, INC. Confidential and Proprietary. Do Not Copy or Distribute. All Rights Reserved © 2015 162 Alexandria’s Regional Market Directors with Leading Reputations & Longstanding Relationships Tom Andrews Executive Vice President & Regional Market Director 31 years of exper
Alexandria Real Estate Equities — Investor Day (December 2015) on 6ix