Alexandria Real Estate Equities, Inc. · NYSE:ARE

Alexandria Real Estate Equities — Q4 2022 Earnings Presentation

70 slides from Alexandria Real Estate Equities's earnings presentation, Jan 30, 2023

Slide 1: Earnings Press Release & Supplemental Information, Q4 and Year Ended December 31, 2022
“ALEXANDRIA HAS ACHIEVED THE THREE OUTPUTS THAT DEFINE A GREAT COMPANY: SUPERIOR RESULTS, DISTINCTIVE IMPACT, AND LASTING ENDURANCE.” Ch) ALEXANDRIA, Building the Future of Life-Changing Innovation JIM COLLINS Renowned Author & Business Strategist ~ AONE-OF-A-KIND, ONCE-IN-A-GENERATION COMPANY SLEXA
Slide 3: Total shareholder return since IPO
Sources: Bloomberg and S&P Global Market Intelligence. Assumes reinvestment of dividends. (1) Alexandria’s IPO priced at $20.00 per share on May 27, 1997. (2) Represents the FTSE Nareit Equity Office Index. ii
Slide 4: Key credit metrics
As of December 31, 2022. (1) Quarter annualized. Refer to “Net debt and preferred stock to Adjusted EBITDA” in the “Definitions and reconciliations” of our Supplemental Information for additional details. iii
Slide 5: Tenant mix and annual rental revenue
As of December 31, 2022. (1) Represents the percentage of our annual rental revenue generated by our top 20 tenants that are also investment-grade or publicly traded large cap tenants. Refer to “Annual rental revenue” and “Investment-grade or publicly traded large cap tenants” in the “Definitions an
Slide 6: Continued operational excellence drives strong leasing activity in 2022
ALEXANDRIA’S CONTINUED OPERATIONAL EXCELLENCE DRIVES STRONG LEASING ACTIVITY IN 2022 Leasing volume of 8.4M RSF represents the second-highest annual leasing volume year in Company history, with 74% generated from our client base of approximately 1,000 tenants 9.5M 8.4M poan 46m 47M = am ? N D) 3.3M
Slide 7: Solid leasing activity continues to surpass quarterly averages
ALEXANDRIA’S SOLID LEASING ACTIVITY CONTINUES TO SURPASS QUARTERLY AVERAGES During 4022, we completed 2.0 million RSF of leasing activity, 81% of which was generated from our client base of approximately 1,000 tenants 1.3M RSF 1.1M RSF 10-Year 5-Year Quarterly Quarterly Average Average 2013 2014 201
Slide 8: Solid rental rate increases continue in 2022
ALEXANDRIA’S SOLID RENTAL RATE INCREASES CONTINUE IN 2022 37.6% 37.9% 32.2% 27.6% 25.1% 24.1% ; ; _ 2016 2017 2018 2019 2020 2021 2022 Rental Rate Growth
Slide 9: Solid rental rate increases (cash basis) continue in 2022
ALEXANDRIA’S SOLID RENTAL RATE INCREASES (CASH BASIS) CONTINUE IN 2022 IN COMPANY HISTORY 2016 2017 2018 2019 2020 2021 2022 Rental Rate Growth (Cash Basis)
Slide 10: Dividend yield and dividend growth
(1) Based on the closing price of our common stock as of December 31, 2022 of $145.67 and the common stock dividend declared for the three months ended December 31, 2022 of $1.21 annualized. ix
Slide 11: Dispositions and sales of partial interests
(1) Includes initial proceeds from our joint venture partners’ contribution toward construction projects. (2) Represents the aggregate gain and consideration in excess of book value recognized on dispositions and partial interest sales, respectively. (3) Represents the weighted-average capitalizatio
Slide 12: Net operating income and projects under construction
Refer to “Net operating income” in the “Definitions and reconciliations” of our Supplemental Information for additional details and its reconciliation from the most directly comparable financial measures presented in accordance with GAAP. (1) As of December 31, 2022. Represents projects under constr
Slide 13: Our mission and cluster model
—™ Cay) ALEXANDRIA. gessi/ Building the Future of Life-Changing Innovation : ~ . our MISSION {+2 ! Tocreate and grow life science . ecosystems and clusters that ignite ° BPs! and accelerate the world’s leading ~~ innovators in their noble pursuit to ; advance human health by curing @. , disease and
Slide 14: Company at a glance
As of December 31, 2022. (1) Refer to “Key credit metrics” of our Supplemental Information for additional details. (2) Refer to “Annual rental revenue” and “Investment-grade or publicly traded large cap tenants” in the “Definitions and reconciliations” of our Supplemental Information for additional
Slide 15: Credit ratings
(1) A credit rating is not a recommendation to buy, sell, or hold securities and may be subject to revision or withdrawal at any time. Top 10% ranking represents credit rating levels from Moody’s Investors Service and S&P Global Ratings for publicly traded U.S. REITs, from Bloomberg Professional Ser
Slide 16: Key credit metrics
As of December 31, 2022. (1) Quarter annualized. Refer to “Net debt and preferred stock to Adjusted EBITDA” in the “Definitions and reconciliations” of our Supplemental Information for additional details. Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023 xv
Slide 18: ESG ratings and rankings
(1) Reflects current score for Alexandria and latest scores available for the FTSE Nareit All REITs Index companies from Bloomberg Professional Services as of December 31, 2022. (2) Top 10% ranking among companies included in the Sustainalytics Global Universe, based on information available from Bl
Slide 19: Environmental goals and progress
Environmental progress data for 2021 reflected in the chart above received independent limited assurance from DNV Business Assurance USA, Inc. (1) 2025 environmental goal for Alexandria’s cumulative progress relative to a 2015 baseline on a like-for-like basis for buildings in operation that the Com
Slide 22: Q4 and 2022 earnings results: key highlights
Alexandria Real Estate Equities, Inc. Reports: 4Q22 and 2022 Net Income per Share – Diluted of $0.31 and $3.18, respectively; and 4Q22 and 2022 FFO per Share – Diluted, As Adjusted, of $2.14 and $8.42, respectively PASADENA, Calif. – January 30, 2023 – Alexandria Real Estate Equities, Inc. (NYSE: AR
Slide 23: Tenant composition
Public Biotechnology — Preclinical or Clinical Stage Public Biotechnology — Multinational Approved or Pharmaceutical Marketed Product 18% Institutional (Academic/Medical, Non-Profit, and U.S. Government) Life Science Product, Service, and Device Investment-Grade and Large Cap Tech/Office 0, 2% | Pri
Slide 24: Percentage of annual rental revenue by tenant
Percentage of ARE’s Annual Rental Revenue (3) Refer to “Annual rental revenue” in the “Definitions and reconciliations” of this Supplemental Information for additional details about our methodology of calculating annual rental revenue from unconsolidated real estate joint ventures. (1) Represents an
Slide 25: Occupancy over ten years
96% Over 10 Years (1) Represents average occupancy of operating properties in North America as of each December 31 for the last 10 years.
Slide 26: 6.6% 2020 2021 £2022
6.6% 2020 2021 £2022
Slide 27: Strategic lease structure
Strategic Lease Structure by Owner and Operator of Collaborative Life Science, Agtech, and Technology Campuses Increasing cash flows Percentage of leases containing annual rent escalations 96% Stable cash flows Percentage of triple net leases 93% Lower capex burden Percentage of leases providing for
Slide 28: 2020 2021 2022
2020 2021 2022
Slide 29: Operating margins and same property performance
Operating Adjusted EBITDA 70% 69% (1) Refer to “Same property performance” and “Definitions and reconciliations” of this Supplemental Information for additional details. “Definitions and reconciliations” contains the definition of “Net operating income” and its reconciliation from the most directly
Slide 30: Investments in real estate
Refer to “Net operating income” in the “Definitions and reconciliations” of our Supplemental Information for additional details and its reconciliation from the most directly comparable financial measures presented in accordance with GAAP. (1) As of December 31, 2022. Represents projects under constr
Slide 31: Slide 31
Slide 32: Slide 32
Slide 33: Slide 33
Slide 34: Recent deliveries: Bay Area, New York, San Diego
3160 Porter Drive 30-02 48th Avenue 3115 Merryfield Row 10055 Barnes Canyon Road San Francisco Bay Area/ Greater Stanford New York City/New York City San Diego/Torrey Pines San Diego/Sorrento Mesa 92,300 RSF 137,187 RSF 146,456 RSF 195,435 RSF 83% Occupancy 69% Occupancy 93% Occupancy 100% Occupancy
Slide 35: Alexandria Center for Life Science
ALEXANDRIA CENTER FOR LIFE SCIENCE
Slide 36: Slide 36
Slide 37: Slide 37
Slide 38: New Class A development and redevelopment properties: recent deliveries (continued)
New Class A Development and Redevelopment Properties: Recent Deliveries (continued)
Slide 39: iN il J
iN il J 4
Slide 40: Slide 40
Slide 41: Slide 41
Slide 42: Recent deliveries: Maryland and Research Triangle
20400 Century Boulevard 2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive (1) 5 and 9 Laboratory Drive (2) 8 and 10 Davis Drive (3) Maryland/Gaithersburg Research Triangle/Research Triangle Research Triangle/Research Triangle Research Triangle/Research Triangle 50,738 RSF 326,445 RSF
Slide 43: Slide 43
Slide 44: siovia
siovia O'soatons ‘sioviA
Slide 45: Slide 45
Slide 46: New Class A development and redevelopment properties: recent deliveries (continued)
(1) Image represents 2400 Ellis Road in our Alexandria Center ® for Life Science – Durham mega campus. (2) Image represents 9 Laboratory Drive in our Alexandria Center ® for AgTech campus. (3) Image represents 10 Davis Drive in our Alexandria Center ® for Advanced Technologies – Research Triangle me
Slide 47: Slide 47
Slide 48: Slide 48
Slide 49: Slide 49
Slide 50: Slide 50
Slide 51: Current projects: Greater Boston and San Francisco Bay Area
15 Necco Street 40, 50, and 60 Sylvan Road (2) 1450 Owens Street 651 Gateway Boulevard 751 Gateway Boulevard Greater Boston/ Seaport Innovation District Greater Boston/Route 128 San Francisco Bay Area/ Mission Bay San Francisco Bay Area/ South San Francisco San Francisco Bay Area/ South San Francisc
Slide 52: Slide 52
Slide 53: rey
rey eats od r iA aul ie
Slide 54: Slide 54
Slide 55: ae al
ae al
Slide 56: New Class A development and redevelopment properties: current projects (continued)
(1) Image represents 500 North Beacon Street in our The Arsenal on the Charles mega campus. (2) Image represents 50 Sylvan Road. New Class A Development and Redevelopment Properties: Current Projects (continued)
Slide 57: Slide 57
Slide 58: Slide 58
Slide 59: Slide 59
Slide 60: Current projects: Maryland and Research Triangle
9601 and 9603 Medical Center Drive 2400 Ellis Road, 40 and 41 Moore Drive, and 14 TW Alexander Drive (1) 4 Davis Drive 6040 George Watts Hill Drive, Phase II Maryland/Rockville Research Triangle/Research Triangle Research Triangle/Research Triangle Research Triangle/Research Triangle 61,322 RSF 376,
Slide 61: Slide 61
Slide 62: Slide 62
Slide 63: Slide 63
Slide 64: New Class A development and redevelopment properties: current projects (continued)
(1) Image represents 41 Moore Drive in our Alexandria Center ® for Life Science – Durham mega campus. New Class A Development and Redevelopment Properties: Current Projects (continued)
Slide 65: Tenant/non-tenant mix (cost)
Tenant/Non-Tenant Mix (Cost)
Slide 66: Non-tenant cost share
71% Non-Tenant
Slide 67: 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 $ 4,000 Outstanding forward equity sales agreements (1) 102 Cash, cash equivalents, and restricted cash 858 Remaining construction loan commitments 136 Investments in p
Slide 68: Net debt and preferred stock to Adjusted EBITDA goal
5.2x 5.1x <5.1x 12/31/21 12/31/22 12/31/23 Goal
Slide 69: Summary of debt
(1) Represents expected net proceeds from the future settlement of 0.7 million shares under forward equity sales agreements after underwriter discounts. (2) Quarter annualized. Refer to “Fixed-charge coverage ratio” and “Net debt and preferred stock to Adjusted EBITDA” in the “Definitions and reconc
Slide 70: Summary of debt (continued)
(1) Refer to footnotes 2 through 4 on the next page under “Fixed-rate and variable-rate debt” for additional details. Summary of Debt (continued)

Alexandria Real Estate Equities — Q4 2022 Earnings Presentation on 6ix

Alexandria Real Estate Equities — Q4 2022 Earnings Presentation

Slide 1: Earnings Press Release & Supplemental Information, Q4 and Year Ended December 31, 2022

Slide 2: Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023

Slide 3: Total shareholder return since IPO

Slide 4: Key credit metrics

Slide 5: Tenant mix and annual rental revenue

Slide 6: Continued operational excellence drives strong leasing activity in 2022

Slide 7: Solid leasing activity continues to surpass quarterly averages

Slide 8: Solid rental rate increases continue in 2022

Slide 9: Solid rental rate increases (cash basis) continue in 2022

Slide 10: Dividend yield and dividend growth

Slide 11: Dispositions and sales of partial interests

Slide 12: Net operating income and projects under construction

Slide 13: Our mission and cluster model

Slide 14: Company at a glance

Slide 15: Credit ratings

Slide 16: Key credit metrics

Slide 17: Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023

Slide 18: ESG ratings and rankings

Slide 19: Environmental goals and progress

Slide 20: Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023

Slide 21: Alexandria Real Estate Equities, Inc. All Rights Reserved. © 2023

Slide 22: Q4 and 2022 earnings results: key highlights

Slide 23: Tenant composition

Slide 24: Percentage of annual rental revenue by tenant

Slide 25: Occupancy over ten years

Slide 26: 6.6% 2020 2021 £2022

Slide 27: Strategic lease structure

Slide 28: 2020 2021 2022

Slide 29: Operating margins and same property performance

Slide 30: Investments in real estate

Slide 31: Slide 31

Slide 32: Slide 32

Slide 33: Slide 33

Slide 34: Recent deliveries: Bay Area, New York, San Diego

Slide 35: Alexandria Center for Life Science

Slide 36: Slide 36

Slide 37: Slide 37

Slide 38: New Class A development and redevelopment properties: recent deliveries (continued)

Slide 39: iN il J

Slide 40: Slide 40

Slide 41: Slide 41

Slide 42: Recent deliveries: Maryland and Research Triangle

Slide 43: Slide 43

Slide 44: siovia

Slide 45: Slide 45

Slide 46: New Class A development and redevelopment properties: recent deliveries (continued)

Slide 47: Slide 47

Slide 48: Slide 48

Slide 49: Slide 49

Slide 50: Slide 50

Slide 51: Current projects: Greater Boston and San Francisco Bay Area

Slide 52: Slide 52

Slide 53: rey

Slide 54: Slide 54

Slide 55: ae al

Slide 56: New Class A development and redevelopment properties: current projects (continued)

Slide 57: Slide 57

Slide 58: Slide 58

Slide 59: Slide 59

Slide 60: Current projects: Maryland and Research Triangle

Slide 61: Slide 61

Slide 62: Slide 62

Slide 63: Slide 63

Slide 64: New Class A development and redevelopment properties: current projects (continued)

Slide 65: Tenant/non-tenant mix (cost)

Slide 66: Non-tenant cost share

Slide 67: Liquidity and net debt to Adjusted EBITDA

Slide 68: Net debt and preferred stock to Adjusted EBITDA goal

Slide 69: Summary of debt

Slide 70: Summary of debt (continued)