Alexandria Real Estate Equities, Inc. · NYSE:ARE

Alexandria Real Estate Equities — Investor Day (November 2017)

193 slides from Alexandria Real Estate Equities's investor day presentation, Nov 29, 2017

Slide 1: 2018-2022: Strategic Growth & Operational Excellence
1ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria Real Estate Equities, Inc. 2018-2022: STRATEGIC GROWTH & OPERATIONAL EXCELLENCE Investor Day | November 29, 2017 | NYSE:ARE
Slide 2: Safe Harbor
1ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 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 Secur
Slide 3: Agenda
2ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 2018-2022: Strategic Growth and Operational Excellence 3 2017: Alexandria’s Performance Scorecard and Awards 19 Market Fundamentals and Tenant Demand for Alexandria’s Urban
Slide 4: 2017: Alexandria's Performance Scorecard and Awards
3ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 2017: Alexandria’s Performance Scorecard and Awards
Slide 5: Alexandria Joins S&P 500 Index
4ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 MARCH 16, 2017 Alexandria Real Estate Equities, Inc. Joins S&P 500 Index PASADENA, Calif., March 16, 2017 /PRNewswire/ -- Alexandria Real Estate Equities, Inc. (NYSE: ARE),
Slide 6: Alexandria Center for AgTech - RTP announcement
5ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 JULY 5, 2017 Alexandria Real Estate Equities, Inc. Announces the Alexandria Center for AgTech - RTP, Initial Phase of First Multi-Tenant, Amenity-Rich Mega R&D Campus with G
Slide 7: Alexandria's 2017 Scorecard
6ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2017 Scorecard Operational Excellence Strong Per Share Growth Strong Internal Growth Strong External Growth Disciplined Allocation of Capital Prudent Management
Slide 8: Strong Per Share Growth Since 2014
7ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 See detailed reconciliation in Appendix. 1. Attributable to Alexandria’s common stockholders – diluted. Alexandria’s Strong Per Share Growth Significant Growth since 2014 EA
Slide 9: Per Share Growth, NAV and Dividends
8ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents December 2014 average net asset value estimates from Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Evercore ISI, Green S
Slide 10: Consistent Growth in FFO Per Share
9ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Funds from operations per share, as adjusted. 2. Represents 4Q17 funds from operations per share, as adjusted, based on the midpoint of our 2017 guidance range from $6.01
Slide 11: 2017 Internal Growth Guidance
10ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Initial 2017 guidance provided at Investor Day on November 30, 2016. 2. On track to meet range of guidance. Alexandria’s 2017 Strong Internal Growth On Track to Meet/Exc
Slide 12: 2017 Leasing Volume and Tenant Demand
11ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. 2017 lease expirations as of December 31, 2016. 2. Includes leasing of 1.9 million RSF of renewed/re-leased spaces and 1.3 million RSF of development/redevelopment of pr
Slide 13: EBITDA Margin Outperformance
12ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. YTD 3Q17 Adjusted EBITDA margins. See detailed reconciliation in Appendix. 2. Source: S&P Global Market Intelligence. Represents FTSE NAREIT US Real Estate Index, office
Slide 14: 2017 External Growth Guidance
13ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 2017 INITIAL GUIDANCE1 6.8% 77% $85M 1. Initial 2017 guidance provided at Investor Day on November 30, 2016. 2. Represents incremental annual net operating income upon stab
Slide 15: 17 Deliveries of New Class A Properties
14ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2017 Strong External Growth 2017 Deliveries of New Class A Properties Leased to High-Quality Tenants 100 BINNEY STREET GB | CAMBRIDGE 341,776 RSF Bristol-Myers
Slide 16: Disciplined Allocation of Capital
15ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Blue shading represents the percentage of projected spending by submarket included in our guidance on October 30, 2017, including completed and projected acquisitions in ou
Slide 17: On Track to Meet Leverage Goals
16ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents the three months ended December 31, 2016, annualized. 2. Represents the midpoint of our 2017 guidance for the three months ended December 31, 2017, annualized
Slide 18: Fixed-Charge Coverage and Pipeline Goals
17ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents the three months ended December 31, 2016, annualized. 2. Represents our 2017 guidance disclosed on October 30, 2017. Alexandria’s 2017 Prudent Management of B
Slide 19: Alexandria's 2017 Awards
18ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2017 Awards P EO P LE SU ST A IN A B IL IT Y R EA L E ST A TE SF: 249, 259, AND 269 EAST GRAND AVENUE SD: 3033 SCIENCE PARK ROAD, SPECTRUM I RTP: 2525 EAST NC
Slide 20: Market Fundamentals and Tenant Demand
19ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Market Fundamentals and Tenant Demand for Alexandria’s Urban Campuses and Class A Properties
Slide 21: Solid Macro Fundamentals
20ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Solid Macro Fundamentals Limited supply of existing and near-term deliveries of Class A space Strong demand from highly innovative entities Continued asset valuation streng
Slide 23: Greater Boston's Diverse Life Science Ecosystem
22ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Greater Boston’s Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 24: East Cambridge Urban Cluster Fundamentals
23ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: CBRE. East Cambridge’s Strong Urban Cluster Fundamentals 11.3M RSF LAB MARKET 1.6% Vacancy 1.9% Available for Lease | Delivery in 2018 Vertical Construction 50 & 60
Slide 25: East Cambridge Life Science Demand
24ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: CBRE. East Cambridge’s Robust Life Science Demand Alexandria Center® at One Kendall Square 1.8M RSF LIFE SCIENCE DEMAND 48 REQUIREMENTS TOP REQUIREMENTS 400,000 RSF
Slide 26: Urban Campuses in East Cambridge
25ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 MIT Alexandria’s Collaborative Urban Campuses in East Cambridge 150 SECOND STREET 11 HURLEY STREET 50 & 60 BINNEY STREET 215 FIRST STREET 100 BINNEY STREET 75/125 BINNEY ST
Slide 27: Tenant Base in Greater Boston
26ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 28: Rental Rate Growth in Greater Boston
27ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of and for the nine months ended September 30, 2017. Robust Demand and Limited Availability Drive Alexandria’s Core Rental Rate Growth in Greater Boston 95.9% RegionalOc
Slide 29: Positive Net Effective Rent Growth in Cambridge
28ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Represents annual average rental revenue on leases completed in YTD 3Q17 for renewals, re-leases, and previously vacant space, less the related amortization of the tenant i
Slide 30: Opportunity to Grow in Greater Boston
29ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $154,322 $352,792 $450,000 $0 $150,000 $300,000 $450,000 $600,000 $750,000 2014 3Q17 2022 ($ in th o us an d s) Represents total consolidated annual rental revenue plus our
Slide 32: San Francisco's Diverse Life Science Ecosystem
31ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 San Francisco’s Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 33: San Francisco Urban Cluster Fundamentals
32ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source (Lab): JLL. Source (Office): Newmark Cornish & Carey. San Francisco’s Strong Urban Cluster Fundamentals 20.7M RSF LAB MARKET 134.5M RSF OFFICE MARKET 2.2% Vacancy 3.
Slide 34: San Francisco Life Science and Office Demand
33ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source (Life Science): JLL. Source (Office): Newmark Cornish & Carey. San Francisco’s Robust Life Science and Office Demand 2.5M RSF LIFE SCIENCE DEMAND 59 REQUIREMENTS TOP
Slide 35: Urban Campuses in Mission Bay/SoMa
34ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Collaborative Urban Campuses in Mission Bay/SoMa 510 TOWNSEND STREET 505 BRANNAN STREET 88 BLUXOME STREET 1655 THIRD STREET 1500 OWENS STREET 1700 OWENS STREET
Slide 36: Tenant Base in San Francisco
35ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 37: Rental Rate Growth in San Francisco
36ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of and for the nine months ended September 30, 2017. Robust Demand and Limited Availability Drive Alexandria’s Core Rental Rate Growth in San Francisco 100% Occupancy 25
Slide 38: Positive Net Effective Rent Growth in San Francisco
37ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Represents annual average rental revenue on leases completed in YTD 3Q17 for renewals, re-leases, and previously vacant space, less the related amortization of the tenant i
Slide 39: Opportunity to Grow in San Francisco
38ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $115,013 $171,661 $475,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2014 3Q17 2022 ($ in thousands ) Represents total con
Slide 41: New York City's Diverse Life Science Ecosystem
40ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 New York City’s Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 42: New York City Urban Cluster Fundamentals
41ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: CBRE. New York City’s Strong Urban Cluster Fundamentals 728K RSF LAB MARKET Open #s Alexandria Center® for Life Science – NYC 0.2% Vacancy 0.0% Available for Lease
Slide 43: New York City Life Science Demand
42ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Cushman & Wakefield. New York City’s Robust Life Science Demand Alexandria Center® for Life Science – NYC 500K RSF LIFE SCIENCE DEMAND 9 REQUIREMENTS TOP REQUIREMEN
Slide 44: Urban Campus in New York City
43ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Collaborative Urban Campus in New York City 450 EAST 29TH STREET EAST TOWER 430 EAST 29TH STREET WEST TOWER 420 EAST 29TH STREET NORTH TOWER OPERATING UNDERGOI
Slide 45: Tenant Base in New York City
44ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 46: Rental Rate Growth in New York City
45ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of and for the nine months ended September 30, 2017. 1. Based on 69,315 RSF of activity. Robust Demand and Limited Availability Drive Alexandria’s Core Rental Rate Growt
Slide 47: Opportunity to Grow in New York City
46ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $50,098 $63,128 $110,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $110,000 2014 3Q17 2022 ($ in thousands ) Represents total cons
Slide 49: San Diego's Diverse Life Science Ecosystem
48ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 San Diego’s Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 50: San Diego Urban Cluster Fundamentals
49ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Cushman & Wakefield. San Diego’s Strong Urban Cluster Fundamentals 16.6M RSF LAB MARKET Campus Pointe by Alexandria 7.0% Vacancy 0.0% Available for Lease | Delivery
Slide 51: San Diego Life Science Demand
50ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Cushman & Wakefield. San Diego’s Robust Life Science Demand ARE Spectrum | Torrey Pines 859K RSF LIFE SCIENCE DEMAND 27 REQUIREMENTS TOP REQUIREMENTS 150,000 RSF |
Slide 52: Campuses in Torrey Pines and University Town Center
51ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Collaborative Urban Campuses in Torrey Pines and University Town Center ARE TORREY RIDGE ARE NAUTILUS CAMPUS POINTE BY ALEXANDRIA ARE SUNRISE ARE SPECTRUM ARE
Slide 53: Tenant Base in San Diego
52ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 54: Rental Rate Growth in San Diego
53ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of and for the nine months ended September 30, 2017. Robust Demand and Limited Availability Drive Alexandria’s Core Rental Rate Growth in San Diego 92.4% Occupancy 18.8%
Slide 55: Opportunity to Grow in San Diego
54ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $103,048 $137,174 $225,000 $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 2014 3Q17 2022 ($ in thousands ) Represents total consolidated a
Slide 57: Seattle's Diverse Life Science Ecosystem
56ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Seattle’s Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 58: Seattle Urban Cluster Fundamentals
57ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: CBRE. Seattle’s Strong Urban Cluster Fundamentals 4.0M RSF LAB MARKET 21.5M RSF OFFICE MARKET 1.0% Vacancy 0.0% Available for Lease | Delivery in 2018 Vertical Cons
Slide 59: Seattle Life Science Demand
58ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Newmark, Cornish & Carey. Seattle’s Robust Life Science Demand 575K RSF LIFE SCIENCE DEMAND 6 REQUIREMENTS TOP REQUIREMENTS 500,000 RSF | Large-Cap Tech 317,500 RSF
Slide 60: Urban Campuses in Lake Union
59ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Collaborative Urban Campuses in Lake Union 1150 EASTLAKE AVENUE EAST 1818 FAIRVIEW AVENUE EAST 1616 EASTLAKE AVENUE EAST 1201/1208 EASTLAKE AVENUE EAST1551 EAS
Slide 61: Tenant Base in Seattle
60ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 62: Rental Rate Growth in Seattle
61ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 N/A N/A As of and for the nine months ended September 30, 2017. 1. Based on only 7,770 RSF of activity. Robust Demand and Limited Availability Drive Alexandria’s Core Renta
Slide 63: Opportunity to Grow in Seattle
62ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $29,881 $47,671 $75,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2014 3Q17 2022 ($ in thousands ) Represents total consolidated annual rental reve
Slide 65: Maryland's Diverse Life Science Ecosystem
64ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Maryland’s Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 66: Maryland Cluster Fundamentals
65ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Scheer Partners. Maryland’s Strong Cluster Fundamentals 7.6M RSF LAB MARKET 9920 Medical Center Drive | Rockville 3.5% Vacancy 0.0% Available for Lease | Delivery i
Slide 67: Maryland Life Science Demand
66ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Scheer Partners. Maryland’s Robust Life Science Demand 401 Professional Drive | Gaithersburg 379K RSF LIFE SCIENCE DEMAND 18 REQUIREMENTS TOP REQUIREMENTS 120,000 R
Slide 68: Collaborative Campuses in Maryland
67ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Collaborative Campuses in Maryland OPERATING UNDERGOING CONSTRUCTION INTERMEDIATE-TERM PROJECTSNEAR-TERM PROJECTS 9800 MEDICAL CENTER DRIVE 9800 MEDICAL CENTER
Slide 69: Tenant Base in Maryland
68ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 70: Rental Rate Growth in Maryland
69ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of and for the nine months ended September 30, 2017. Robust Demand and Limited Availability Drive Alexandria’s Core Rental Rate Growth in Maryland 93.6% Occupancy 29.0%
Slide 71: Opportunity to Grow in Maryland
70ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $49,164 $50,706 $65,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2014 3Q17 2022 ($ in thousands ) Represents total consolidated annual rental revenue plus
Slide 73: Research Triangle Park Life Science Ecosystem
72ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Research Triangle Park Diverse Life Science Ecosystem Private Companies Public Companies Venture Capital Firms Academic & Research Institutions
Slide 74: Research Triangle Park Cluster Fundamentals
73ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Internal. Research Triangle Park’s Strong Cluster Fundamentals 4.6M RSF LAB MARKET New image 114 TW Alexander Drive 9.5% Vacancy 0.0% Available for Lease | Delivery
Slide 75: Research Triangle Park Life Science Demand
74ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: CBRE. Research Triangle Park’s Robust Life Science Demand 6040 George Watts Hill Drive 440K RSF LIFE SCIENCE DEMAND 19 REQUIREMENTS TOP REQUIREMENTS 80,000 RSF | Pr
Slide 76: Campuses in Research Triangle Park
75ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Collaborative Campuses in Research Triangle Park OPERATING UNDERGOING CONSTRUCTION INTERMEDIATE-TERM PROJECTSNEAR-TERM PROJECTS 5 LABORATORY DRIVE 6 DAVIS DRIV
Slide 77: Tenant Base in Research Triangle Park
76ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. 1. Institutional represents Academic/Medical, Non-Profit & U.S. Government. 2. Annual rental revenue represents annualized base rent as of Septemb
Slide 78: Rental Rate Growth in Research Triangle Park
77ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of and for the nine months ended September 30, 2017. Robust Demand and Limited Availability Drive Alexandria’s Core Rental Rate Growth in Research Triangle Park 98.1% Oc
Slide 79: Opportunity to Grow in Research Triangle Park
78ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 $21,371 $25,371 $35,000 $60,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2014 3Q17 2022 (Excluding 6 Davis Campus) 2022 (Including 6 Davis Campus) ($ in thousands
Slide 80: 2018 Contractual Lease Expirations
79ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 2018 Contractual Lease Expirations
Slide 81: Contractual Lease Expirations in 2018
80ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Contractual Lease Expirations in 2018 2018 RSF of Expiring Leases NEGOTIATING/ ANTICIPATING TARGETED FOR DEVELOPMENT/ REDEVELOPMENT REMAINING EXPIRING LEASESMA
Slide 82: Top Contractual Lease Expirations in 2018
81ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Top 10 Contractual Lease Expirations in 2018 PROPERTY | MARKET | SUBMARKET EXPIRATION RSF ANNUAL RENTAL REVENUE PER RSF LEASED NEGOTIATING/ ANTICIPATING TARGET
Slide 83: Internal Growth: Strong Same Property NOI Growth
82ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Internal Growth: Strong Same Property Net Operating Income Growth
Slide 84: Alexandria's Internal Growth
83ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Internal Growth Operational Excellence Solid Fundamentals Strong Same Property Net Operating Income Growth High-Quality Cash Flows Strong EBITDA Margins Low Le
Slide 85: Solid Macro Fundamentals
84ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Solid Macro Fundamentals Limited supply of existing and near-term deliveries of Class A space Strong demand from highly innovative entities Continued asset valuation streng
Slide 86: Strong Same Property Cash NOI Growth
85ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Leasing activity includes renewals, re-leasing, and early renewals and excludes leasing activity related to development and redevelopment projects. 2. Represents average
Slide 87: Same Property NOI Growth Outperforms Office REITs
86ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Office REIT Average composition per our peers, as defined in the Proxy, and data from SEC filings. Alexandria’s Strong Same Property Cash Net Operating Income Growt
Slide 88: Steady Occupancy Outperforms Office REITs
87ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Office REIT Average composition per FTSE NAREIT and data from S&P Global Market Intelligence and SEC filings. 1. Represents average occupancy of operating propertie
Slide 89: High-Quality Cash Flows
88ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Percentages calculated based on RSF as of September 30, 2017. 2. Annual rental revenue represents annualized base rent in effect as of September 30, 2017. Alexandria’s H
Slide 90: Strong EBITDA Margins
89ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: Office REIT Average composition per FTSE NAREIT and data from S&P Global Market Intelligence and SEC filings. Alexandria’s Strong EBITDA Margins Consistently Outper
Slide 91: Low Leasing Costs and Maintenance Capex
90ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Source: GreenStreetAdvisors.com as of November 2, 2017, for all companies except Alexandria. 1. Represents weighted average for the years ended December 31, 2013, to Decemb
Slide 92: Efficient Real Estate Asset Base
91ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Office data from GreenStreetAdvisors.com as of November 2, 2017. Alexandria data represents weighted average for the years ended December 31, 2013, to December 31, 2017,
Slide 93: External Growth: Highly Leased Pipeline of New Class A Properties
92ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 External Growth: Strong Growth and Highly Leased Pipeline of New Class A Properties
Slide 95: Opportunistic Acquisition Strategy
94ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Opportunistic Acquisition Strategy How Alexandria Increases Cash Flows GROUND-UP DEVELOPMENT REDEVELOPMENT OF OFFICE TO LAB NEAR-TERM MARK-TO-MARKET OPPORTUNIT
Slide 96: Quick Lease-Up of Acquired Properties
95ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of November 2017. 1. Includes certain projects from 2014 to 2017 and one project in 2011, as listed on this page. 2. Represents the weighted-average number of months bet
Slide 97: Menlo Gateway Acquisition
96ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Opportunistic Acquisition Strategy Menlo Gateway Acquisition: Closed November 2017 Facebook Build-to-Suit Opportunity
Slide 98: Facebook's Expanding Footprint in Menlo Park
97ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Greater Stanford Cluster: Facebook’s Expanding Footprint in Menlo Park MENLO GATEWAY, PHASE I MENLO GATEWAY, PHASE II FACEBOOK CAMPUS FACEBOOK CAMPUS FACEBOOK CAMPUS FACEBO
Slide 99: Menlo Gateway Acquisition Details
98ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 521,000 RSF | Phase II 125 and 135 Constitution Drive Undergoing development (Occupancy in 4Q19) 6.9% | Cash 6.3% Initial Stabilized Yields 252,000 RSF | Phase I 100 Indepe
Slide 100: Strategic Growth in the Greater Stanford Cluster
99ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Significant and Strategic Growth in the Greater Stanford Cluster Significant Value Creation Large spread between 6.3% initial cash yield and sub 5.0% cash yield for new Cla
Slide 101: Menlo Gateway: Strategic Relationship with Facebook
100ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. As of November 21, 2017. 2. Source: Glassdoor “Best Places to Work 2017 Employee’s Choice.” Menlo Gateway: Strategic Relationship with Facebook One of Largest Companies
Slide 102: Alexandria as a Trusted Partner
101ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Menlo Gateway: Alexandria as a Trusted Partner Deep Expertise Unparalleled expertise in designing, constructing, and operating mission-critical multi-building campuses Ext
Slide 103: Value-Added Developments & Redevelopments
102ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 VALUE-ADDED DEVELOPMENTS & REDEVELOPMENTS
Slide 104: Development and Redevelopment Strategy
103ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Development and Redevelopment Strategy STRATEGY • Pipeline that provides external growth visibility • Optionality to address demand from innovative entities •
Slide 105: Class A Properties in AAA Locations
104ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Based on annual rental revenue as of 3Q17, pro forma for 4Q17 expected deliveries. Alexandria’s Class A Properties in AAA Locations Transformation of Real Estate Asset Bas
Slide 106: Pipeline Will Drive Multiyear Growth
105ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Based on consolidated annual rental revenue plus our share of unconsolidated real estate joint ventures. 2. The 2022 projected amount assumes 2% annual growth from our
Slide 107: Successful Ground-Up Development Leased to High-Quality Tenants
106ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Successful Ground-Up Development of New Class A Properties Leased to High-Quality Tenants 84% of Annual Rental Revenue Is from Investment-Grade or Large-Cap T
Slide 108: Disciplined Management of Ground-Up Developments
107ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. Represents average pre-leased percentage at the commencement of vertical aboveground construction. Alexandria’s Disciplined Management of Ground-
Slide 109: Managing Rising Construction Costs
108ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 4.1% 4.4% 4.5% 4.7% 5.0% 2013 2014 2015 2016 2017 Projected 1. Source: Turner Building Cost Index – 3Q17 Forecast. Alexandria’s Development Expertise Managing Rising Const
Slide 111: Binney Street, Cambridge
110ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 100 BINNEY STREET | CAMBRIDGE | 432,931 RSF 2017/2018 Delivery
Slide 112: Binney Street, Cambridge
111ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 399 BINNEY STREET | CAMBRIDGE | 164,000 RSF 2018 Delivery
Slide 113: Second Avenue, Route 128
112ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 266 & 275 SECOND AVENUE | ROUTE 128 | 59,173 RSF 2018 Delivery
Slide 114: Binney Street, Cambridge
113ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 325 BINNEY STREET | CAMBRIDGE | 208,965 SF Intermediate Term
Slide 115: Other Greater Boston Projects
114ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 41 LINSKEY WAY GB | CAMBRIDGE 16,955 RSF 161 FIRST STREET GB | CAMBRIDGE TBD RSF 231 SECOND AVENUE GB | ROUTE 128 50,000 RSF 19 PRESIDENTIAL WAY GB | ROUTE 128 130,000 RSF
Slide 117: Townsend Street, Mission Bay/SoMa
116ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 510 TOWNSEND STREET | MISSION BAY/SOMA | 300,000 RSF 2017 Delivery
Slide 118: Brannan Street Phase I
117ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 505 BRANNAN STREET, PHASE I | MISSION BAY/SOMA | 150,000 RSF 2017 Delivery
Slide 119: East Grand Avenue, South San Francisco
118ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 213 EAST GRAND AVENUE | SOUTH SAN FRANCISCO | 300,930 RSF 2019 Delivery
Slide 120: Menlo Gateway Phase II
119ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 MENLO GATEWAY, PHASE II | GREATER STANFORD | 521,000 RSF 2019 Delivery
Slide 121: 1655 & 1715 Third Street
120ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1655 & 1715 THIRD STREET | MISSION BAY/SOMA | 580,000 RSF 2019 Delivery
Slide 122: East Grand Avenue, South San Francisco
121ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 279 EAST GRAND AVENUE | SOUTH SAN FRANCISCO | 199,000 SF Near Term
Slide 123: Gateway Boulevard, South San Francisco
122ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 681 GATEWAY BOULEVARD | SOUTH SAN FRANCISCO | 126,971 RSF Near Term
Slide 124: Haskins Way, South San Francisco
123ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 201 HASKINS WAY | SOUTH SAN FRANCISCO | 280,000 SF Near Term
Slide 125: Industrial Road, Greater Stanford
124ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 825 & 835 INDUSTRIAL ROAD | GREATER STANFORD | 530,000 SF Near Term
Slide 126: Industrial Road, Greater Stanford
125ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 960 INDUSTRIAL ROAD | GREATER STANFORD | 500,000 SF Intermediate Term
Slide 127: Bluxome Street, Mission Bay/SoMa
126ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 88 BLUXOME STREET | MISSION BAY/SOMA | 1,070,925 SF Intermediate Term
Slide 128: Brannan Street Phase II
127ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 505 BRANNAN STREET, PHASE II | MISSION BAY/SOMA | 165,000 SF Intermediate Term
Slide 129: East Grand Avenue, South San Francisco
128ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 EAST GRAND AVENUE | SOUTH SAN FRANCISCO | 90,000 SF Future
Slide 131: Alexandria Center for Life Science - North Tower
130ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 ALEXANDRIA CENTER® FOR LIFE SCIENCE – NORTH TOWER | MANHATTAN | 420,000 SF Intermediate Term
Slide 133: ARE Spectrum, Torrey Pines
132ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 ARE SPECTRUM | TORREY PINES | 233,523 RSF 2017 Delivery
Slide 134: 5200 Illumina Way Parking Structure
133ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 5200 ILLUMINA WAY, PARKING STRUCTURE | UNIVERSITY TOWN CENTER 2017 Delivery
Slide 135: 9625 Towne Centre Drive
134ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 9625 TOWNE CENTRE DRIVE | UNIVERSITY TOWN CENTER | 163,648 RSF 2018 Delivery
Slide 136: 9880 Campus Point Drive
135ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 9880 CAMPUS POINT DRIVE | UNIVERSITY TOWN CENTER | 71,510 RSF Near Term
Slide 137: 5200 Illumina Way
136ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 5200 ILLUMINA WAY | UNIVERSITY TOWN CENTER | 386,044 SF Intermediate Term
Slide 138: Campus Point Drive
137ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 CAMPUS POINT DRIVE | UNIVERSITY TOWN CENTER | 315,000 SF Intermediate Term
Slide 139: Vista Wateridge, Sorrento Mesa
138ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 VISTA WATERIDGE | SORRENTO MESA | 163,000 SF Future
Slide 141: Dexter Avenue North, Lake Union
140ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 400 DEXTER AVENUE NORTH | LAKE UNION | 290,111 RSF 2017 Delivery
Slide 142: 1818 Fairview Avenue East
141ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1818 FAIRVIEW AVENUE EAST | LAKE UNION | 205,000 SF Near Term
Slide 143: 1150 Eastlake Avenue East
142ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1150 EASTLAKE AVENUE EAST | LAKE UNION | 260,000 SF Intermediate Term
Slide 144: 1165 Eastlake Avenue East
143ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1165 EASTLAKE AVENUE EAST | LAKE UNION | 106,000 SF Future
Slide 146: 9900 Medical Center Drive, Rockville
145ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 9900 MEDICAL CENTER DRIVE | ROCKVILLE | 45,039 RSF 2018 Delivery
Slide 147: 9800 Medical Center Drive, Rockville
146ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 9800 MEDICAL CENTER DRIVE | ROCKVILLE | 180,000 SF Intermediate Term
Slide 149: Laboratory Drive, Research Triangle Park
148ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 5 LABORATORY DRIVE | RESEARCH TRIANGLE PARK | 175,000 RSF 2018/2019 Delivery
Slide 150: Davis Drive, Research Triangle Park
149ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 6 DAVIS DRIVE | RESEARCH TRIANGLE PARK | 1,000,000 SF Future
Slide 151: Properties Placed Into Service During 2017
150ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of November 29, 2017. 1. Upon stabilization of the property. Alexandria’s Development and Redevelopment of New Class A Properties Expected to be Placed Into Service dur
Slide 152: Developments and Redevelopments Under Construction
151ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 PROPERTY | MARKET | SUBMARKET ARE’S OWNERSHIP INTEREST IN SERVICE CIP COST TO COMPLETE TOTAL AT COMPLETION UNLEVERED YIELDS AVERAGE CASH INITIAL STABILIZED CASH BASIS INIT
Slide 153: Anticipated Start Dates and Initial Occupancy
152ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Anticipated start dates and initial occupancy dates are subject to leasing and/or market conditions. Stabilized occupancy may vary depending on single tenancy versus mu
Slide 154: Intermediate and Future Development Pipeline
153ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 PROPERTY | SUBMARKET OUR OWNERSHIP INTEREST BOOK VALUE SQUARE FOOTAGE INTERMEDIATE DEVELOPMENT FUTURE DEVELOPMENT TOTAL Greater Boston Intermediate-term developments 325 B
Slide 155: Intermediate and Future Pipeline (cont.)
154ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of November 29, 2017, except for book values, which are as of September 30, 2017. Alexandria’s Development and Redevelopment of New Class A Properties Intermediate and
Slide 157: Alexandria's Non-Real Estate Investments
156ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 As of September 30, 2017. Alexandria’s Non-Real Estate Investments PUBLIC/PRIVATE MIX (COST) ($ in thousands) INVESTMENT TYPE COST NET UNREALIZED GAINS TOTAL Public $ 55,4
Slide 158: Diverse Investments in Highly Innovative Entities
157ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Hematology <1% Cardiovascular 1% Autoimmune and Inflammatory Disease 4% Rare Diseases 4% Metabolic Disorders 6% Gene Therapy 6% Other 6% CNS/Neurological Diseases 9% Infec
Slide 159: Recent IPOs and Mergers and Acquisitions
158ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 For the period between January 1, 2013, and September 30, 2017. Alexandria’s Life Science Investments: Recent Initial Public Offerings and Mergers and Acquisitions REALIZE
Slide 161: Financial Strategy: Prudent Management of Balance Sheet
160ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Financial Strategy Prudent Management of Balance Sheet • Improve credit profile and long-term cost of capital • Maintain proven access to diverse sources of c
Slide 162: Commitment to Enhance Credit Profile
161ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Commitment to Enhance Credit Profile Continued Improvement in Cost of Capital BAA2 BBB- BAA2 BBB BAA1 BBB MID-2011 TODAY NEAR TERM
Slide 163: On Track to Exceed Targets for Moody's Upgrade
162ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Commitment to Enhance Credit Profile On Track to Exceed Targets for Moody’s Upgrade Moody’s Target 2017 Projection Based upon Moody’s Methodology Leverage <6.
Slide 164: Credit Profile Drives Improvement in Cost of Capital
163ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Commitment to Enhance Credit Profile Drives Improvement in Long-Term Cost of Capital MOODY’S REPORT DATED ALEXANDRIA’S OUTLOOK MOODY’S CREDIT RATING CRITERIA
Slide 165: Diverse Sources of Capital
164ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Net cash provided by operating activities after dividends and distributions to noncontrolling interests. Alexandria’s Diverse Sources of Capital Proven Access UNSECURED
Slide 166: Commitment to Long-Term Capital to Fund Growth
165ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s Commitment to Long-Term Capital to Fund Growth Disciplined Funding Strategy with Attractive Returns • Invest cash flows from operating activities after divide
Slide 167: Prudent Laddering of Debt Maturities
166ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Options to extend maturity date of a $318 million secured note payable to 2021. Alexandria’s Prudent Laddering of Debt Maturities Opportunistic Issuance of Unsecured Se
Slide 168: Solid Credit Metrics
167ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 4.1x >4.0x 3Q17 4Q17 Projected 12% <10% 3Q17 4Q17 Projected 1. Quarter annualized. 2. Represents the midpoint of our 2017 guidance range disclosed on October 30, 2017. 3.
Slide 169: Solid Credit Metrics: Liquidity and Variable Rate Debt
168ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. As of September 30, 2017. 2. As a percentage of total debt. 3. For the three months ended September 30, 2017, pro forma for the repayment of $392 million of secured con
Slide 170: Dividends and Payout Ratio
169ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents the sum of quarterly dividends declared during each calendar year, except for 2017, which represents YTD 3Q17 plus 4Q17 dividends based on the 3Q17 run rate.
Slide 171: 2018 Investment Thesis and Guidance
170ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 2018 Investment Thesis and Guidance
Slide 172: 2018 Investment Thesis
171ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2018 Investment Thesis Unique Strategy and Operational Excellence Drive High-Quality Results High-Quality Per Share Growth: Cash Flows FFO NAV Dividends Uniqu
Slide 173: Best-in-Class, Unique Urban Office REIT
172ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2018 Investment Thesis Best-in-Class, Unique Urban Office REIT • Continuing strong demand for Alexandria’s Class A properties in AAA urban innovation clusters
Slide 174: 2018 Guidance: EPS and FFO Per Share
173ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 See detailed reconciliation in Appendix. 1. Attributable to Alexandria’s common stockholders – diluted. 2. Represents 2017 guidance ranges disclosed on October 30, 2017. 2
Slide 175: Key Components of 2018 FFO Per Share Growth
174ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Based on the midpoint of our 2018 guidance range from $6.45 to $6.65 disclosed on November 29, 2017. Alexandria’s Key Components of 2018 FFO Per Share Growth Strong Int
Slide 176: Strong FFO Per Share Growth since 2013
175ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents midpoint of our 2017 guidance range from $6.01 to 6.03 disclosed on October 30, 2017. 2. Represents midpoint of our 2018 guidance range from $6.45 to 6.65 di
Slide 177: 2018 Internal Growth Assumptions
176ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Represents 2018 guidance ranges disclosed on November 29, 2017. 1. Operating properties in North America as of December 31, 2018. 2. Lease renewals and re-leasing of space
Slide 178: Strong Fundamentals Driving Demand for Class A Properties
177ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Strong Fundamentals Driving Demand for Alexandria’s Class A Properties Alexandria’s solid real estate fundamentals in its key urban innovation cluster submarkets • Constra
Slide 179: 2018 Guidance: Sources and Uses of Capital
178ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents average initial stabilized yield (cash basis) for ground-up developments delivered in 2017 and 2018, respectively. 2018 amount represents the midpoint of a r
Slide 180: 2018 Free Cash Flows
179ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents the midpoint of 2018 sources and uses guidance ranges disclosed on November 29, 2017. Alexandria’s 2018 Guidance Sources and Uses of Capital ($ in millions)
Slide 181: 2018 Guidance: Incremental Debt
180ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents net cash provided by operating activities after dividends and distributions to noncontrolling interests. For the purpose of this calculation, changes in oper
Slide 182: 2018 Guidance: External Growth Investments
181ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents the midpoint of 2018 incremental debt range disclosed on November 29, 2017. Alexandria’s 2018 Guidance Incremental Debt ($ in millions) Midpoint of 2018 Guid
Slide 183: 2018 Key Income Statement Items
182ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Includes our share of equity required for our Menlo Gateway joint venture (Facebook build-to-suit value added opportunity). 2. Executed letters of intent/purchase and s
Slide 184: 2018 General and Administrative Expenses
183ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2018 Key Income Statement Items ($ in millions) Straight-Line Rent Revenue1 $92 – $102 Approximately 50% of straight-line rent revenue represents initial free
Slide 185: 2018 Guidance: Solid Credit Metrics
184ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Alexandria’s 2018 General and Administrative Expenses Consistent with Growth in Business ($ in millions) General and Administrative Expenses1 $85 – $90 0.6% 0.6% 0.6% 2016
Slide 186: Appendix
185ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 6.1x 5.6x 5.3x to 5.8x 3Q17 4Q17 Projected 4Q18 Projected 4.1x >4.0x >4.0 3Q17 4Q17 Projected 4Q18 Projected 12% <10% 8% to 12% 3Q17 4Q17 Projected 4Q18 Projected 1. Quart
Slide 188: Appendix: 2018 Guidance Incremental Debt
187ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents 2018 guidance ranges disclosed on November 29, 2017. Appendix: Alexandria’s 2018 Guidance Sources and Uses of Capital ($ in millions) RANGE1 Net cash provide
Slide 189: Appendix: Non-GAAP Measures - Adjusted EBITDA
188ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 1. Represents 2018 guidance ranges disclosed on November 29, 2017. Appendix: Alexandria’s 2018 Guidance Incremental Debt ($ in millions) RANGE1 Issuance of unsecured senio
Slide 190: Appendix: Non-GAAP Measures - Net Debt to Adjusted EBITDA
189ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Appendix: Non-GAAP Measures ($ in thousands) ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN 2011 2012 2013 2014 2015 2016 YTD 3Q17 QTD 3Q17 Net income $ 135,393 $ 105,528 $ 14
Slide 191: Appendix: Projected FFO Per Share, As Adjusted - By Year
190ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Appendix: Non-GAAP Measures THREE MONTHS ENDED NET DEBT TO ADJUSTED EBITDA AND NET DEBT AND PREFERRED STOCK TO ADJUSTED EBITDA 4Q16 3Q17 Adjusted EBITDA $165,709 $193,457
Slide 192: Appendix: FFO Per Share, As Adjusted - By Quarter
191ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Appendix: Non-GAAP Measures PROJECTED FUNDS FROM OPERATIONS PER SHARE, AS ADJUSTED - BY YEAR 2013 2014 2015 2016 2017 2018 Net income (loss) per share attributable to Alex
Slide 193: 192ALEXANDRIA Appendix: Non-GAAP Measures FUNDS FROM OPERATIONS PER SHARE, AS ADJUSTED - BY QUARTER
192ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2017 Appendix: Non-GAAP Measures FUNDS FROM OPERATIONS PER SHARE, AS ADJUSTED - BY QUARTER 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Net income

Alexandria Real Estate Equities — Investor Day (November 2017) on 6ix

Alexandria Real Estate Equities — Investor Day (November 2017)

Slide 1: 2018-2022: Strategic Growth & Operational Excellence

Slide 2: Safe Harbor

Slide 3: Agenda

Slide 4: 2017: Alexandria's Performance Scorecard and Awards

Slide 5: Alexandria Joins S&P 500 Index

Slide 6: Alexandria Center for AgTech - RTP announcement

Slide 7: Alexandria's 2017 Scorecard

Slide 8: Strong Per Share Growth Since 2014

Slide 9: Per Share Growth, NAV and Dividends

Slide 10: Consistent Growth in FFO Per Share

Slide 11: 2017 Internal Growth Guidance

Slide 12: 2017 Leasing Volume and Tenant Demand

Slide 13: EBITDA Margin Outperformance

Slide 14: 2017 External Growth Guidance

Slide 15: 17 Deliveries of New Class A Properties

Slide 16: Disciplined Allocation of Capital

Slide 17: On Track to Meet Leverage Goals

Slide 18: Fixed-Charge Coverage and Pipeline Goals

Slide 19: Alexandria's 2017 Awards

Slide 20: Market Fundamentals and Tenant Demand

Slide 21: Solid Macro Fundamentals

Slide 22: Greater Boston

Slide 23: Greater Boston's Diverse Life Science Ecosystem

Slide 24: East Cambridge Urban Cluster Fundamentals

Slide 25: East Cambridge Life Science Demand

Slide 26: Urban Campuses in East Cambridge

Slide 27: Tenant Base in Greater Boston

Slide 28: Rental Rate Growth in Greater Boston

Slide 29: Positive Net Effective Rent Growth in Cambridge

Slide 30: Opportunity to Grow in Greater Boston

Slide 31: San Francisco

Slide 32: San Francisco's Diverse Life Science Ecosystem

Slide 33: San Francisco Urban Cluster Fundamentals

Slide 34: San Francisco Life Science and Office Demand

Slide 35: Urban Campuses in Mission Bay/SoMa

Slide 36: Tenant Base in San Francisco

Slide 37: Rental Rate Growth in San Francisco

Slide 38: Positive Net Effective Rent Growth in San Francisco

Slide 39: Opportunity to Grow in San Francisco

Slide 40: New York City

Slide 41: New York City's Diverse Life Science Ecosystem

Slide 42: New York City Urban Cluster Fundamentals

Slide 43: New York City Life Science Demand

Slide 44: Urban Campus in New York City

Slide 45: Tenant Base in New York City

Slide 46: Rental Rate Growth in New York City

Slide 47: Opportunity to Grow in New York City

Slide 48: San Diego

Slide 49: San Diego's Diverse Life Science Ecosystem

Slide 50: San Diego Urban Cluster Fundamentals

Slide 51: San Diego Life Science Demand

Slide 52: Campuses in Torrey Pines and University Town Center

Slide 53: Tenant Base in San Diego

Slide 54: Rental Rate Growth in San Diego

Slide 55: Opportunity to Grow in San Diego

Slide 56: Seattle

Slide 57: Seattle's Diverse Life Science Ecosystem

Slide 58: Seattle Urban Cluster Fundamentals

Slide 59: Seattle Life Science Demand

Slide 60: Urban Campuses in Lake Union

Slide 61: Tenant Base in Seattle

Slide 62: Rental Rate Growth in Seattle

Slide 63: Opportunity to Grow in Seattle

Slide 64: Maryland

Slide 65: Maryland's Diverse Life Science Ecosystem

Slide 66: Maryland Cluster Fundamentals

Slide 67: Maryland Life Science Demand

Slide 68: Collaborative Campuses in Maryland

Slide 69: Tenant Base in Maryland

Slide 70: Rental Rate Growth in Maryland

Slide 71: Opportunity to Grow in Maryland

Slide 72: Research Triangle Park

Slide 73: Research Triangle Park Life Science Ecosystem

Slide 74: Research Triangle Park Cluster Fundamentals

Slide 75: Research Triangle Park Life Science Demand

Slide 76: Campuses in Research Triangle Park

Slide 77: Tenant Base in Research Triangle Park

Slide 78: Rental Rate Growth in Research Triangle Park

Slide 79: Opportunity to Grow in Research Triangle Park