Alexandria Real Estate Equities, Inc. · NYSE:ARE
Alexandria Real Estate Equities — Investor Day (November 2016)
161 slides from Alexandria Real Estate Equities's investor day presentation, Nov 30, 2016
Slide 1: Investor Day 2016: 2017 and Beyond
NYSE:ARE Investor Day | November 30, 2016 | New York City 2017 and Beyond: Continuing Demand and Growth Unique Collaborative Science & Technology Campuses in Urban Innovation Clusters
Slide 2: Safe Harbor
2ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 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
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Slide 4: Alexandria Investor Day November 2016: Presenters
4ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria Investor Day | November 2016: Presenters Steve Richardson Joel Marcus Chairman, Chief Executive Officer & Founder Dean Shigenaga Executive Vice President, Chief F
Slide 5: Best-in-Class, Unique Office REIT
5ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. For the three months ended September 30, 2016. Best-in-Class, Unique Office REIT of ARE
Slide 6: Key Takeaways: Alexandria Investor Day November 2016
6ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Key Takeaways: Alexandria Investor Day November 2016 Alexandria is the only publicly traded pure-play laboratory/office REIT Alexandria is a safe, long-term investment Alexa
Slide 7: Table of Contents
7ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Table of Contents 2016: Alexandria’s Performance Scorecard 2017: Alexandria’s Investment Thesis Market Fundamentals and Tenant Demand for Alexandria’s Campuses and Class A P
Slide 8: 2016: Alexandria's Performance Scorecard
8ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 2016: Alexandria’s Performance Scorecard
Slide 9: Alexandria's 2016 Scorecard
9ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Disciplined Allocation of Capital✓ ✓ Solid Internal Growth ✓ Solid External Growth ✓ Disciplined Management of Balance Sheet Alexandria’s 2016 Scorecard ✓ Solid Per Share Gr
Slide 10: Per Share Results: 2016 vs. 2013
10ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ✓ 1. See detailed reconciliation in Appendix. Alexandria’s Per Share Results: 2016 vs. 2013 $(1.54) to $(1.52) $5.50 to $5.52 2016P120131 $1.60 $4.40 Net income (loss) per
Slide 11: Alexandria's Solid Per Share Growth
11ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents December 2013 average net asset value estimates from Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Evercore ISI, Green
Slide 12: Per Share Growth in NAV, FFO and Dividends
12ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents the change in average net asset values reported by Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Evercore ISI, Green St
Slide 13: Three-Year Total Shareholder Return
13ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents period from December 31, 2013 through October 31, 2016. Total stockholder return assumes reinvestment of dividends. 2. Data from S&P Global Market Intelligenc
Slide 14: Internal and External Growth
14ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 EXTERNALINTERNAL New Class A properties through developments and redevelopments Same property net operating income and rental rate growth GROWTH GROWTH
Slide 15: 2016: Solid Internal Growth vs. Guidance
15ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Initial 2016 Guidance provided at Investor Day on December 2, 2015. 2016: Alexandria’s Unique Business Strategy Driving Solid Internal Growth 2016 Guidance Range1 Rental
Slide 16: 2016: Rental Rate Increases on Renewed/Re-Leased Space
16ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 For the nine months ended September 30, 2016. See prior slide for initial range of 2016 guidance. 2016: Alexandria’s Significant Rental Rate Increases on Renewed/Re-Leased
Slide 17: 2016: Solid External Growth from New Class A Deliveries
17ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ✓ 1. Represents incremental annual net operating income upon stabilization of our development and redevelopment projects, including our share of real estate joint venture p
Slide 18: Real Estate Solutions Driving Collaboration and Innovation
18ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 See external growth section for additional details. Alexandria Inspires Real Estate Solutions to Drive Collaboration and Innovation Completed 3Q 97% Leased 274,734 RSF Sano
Slide 19: 2016: Capital Allocated to Urban Innovation Submarkets
19ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Reflects projected construction and acquisitions for the year ending December 31, 2016, including the acquisition of One Kendall Square located
Slide 20: 2016 Sources and Uses of Capital
20ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Includes completed and pending dispositions, including sales of partial interests for the year ending December 31, 2016. 2. Includes $106 milli
Slide 21: Accelerated Timing of Leverage and Fixed-Charge Coverage Goals
21ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Other REITs represents an average of the following companies based upon their SEC filings: Boston Properties, Inc., HCP, Inc., Kilroy Realty Corporation, Digital Realty
Slide 22: NAREIT Recognition for Communications and Reporting Excellence
22ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria is honored to be recognized by NAREIT again this year for its efforts to provide transparent, quality, and efficient communications to the investment community.
Slide 23: Alexandria's 2016 Awards
23ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s 2016 Awards ▷Alexandria Real Estate Equities, Inc. ▷75/125 Binney Street ▷100 Binney Street ▷50 Binney Street ▷60 Binney Street ▷100 Binney Street ▷Alexandria
Slide 24: 2017: Alexandria's Investment Thesis
24ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 2017: Alexandria’s Investment Thesis
Slide 25: Best-in-Class, Unique Office REIT
25ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. For the three months ended September 30, 2016. Best-in-Class, Unique Office REIT of AR
Slide 26: Alexandria's Long-Term Business Goals
26ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Long-Term Business Goals Growth in Net Asset Value and Funds from Operations Per Share1 Beat and Raise Guidance2 A Clean Operating Story3 Disciplined Allocatio
Slide 27: Alexandria's Investment Thesis
27ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Investment Thesis Continuing strong demand for Alexandria’s Class A properties in AAA urban innovation clusters Unique underwriting expertise that enables the
Slide 28: 2017: Solid Macro Fundamentals
28ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 2017: Solid Macro Fundamentals Limited supply of existing and future Class A space Strong demand from highly innovative entities Favorable rental rate trends Very strong oc
Slide 29: Market Fundamentals and Tenant Demand for Campuses and Class A Properties
29ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Market Fundamentals and Tenant Demand for Alexandria’s Campuses and Class A Properties
Slide 30: Greater Boston: Cambridge
Slide 31: Urban Innovation Clusters: Kendall Square and East Cambridge
31ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Unique Collaborative Urban Innovation Clusters: Kendall Square and East Cambridge WHITEHEAD INSTITUTE FOR BIOMEDICAL RESEARCH HARVARD UNIVERSITY 225 BINNEY STR
Slide 32: Greater Boston's Major Urban Innovation Cluster Drivers
32ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Greater Boston’s Major Urban Innovation Cluster Drivers NOVEMBER 2016 IBM Watson Health and the Broad Institute of MIT and Harvard will sequence 10,000 drug-resistant cance
Slide 33: Diverse and High-Quality Tenant Base in Greater Boston
33ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. Institutional represents: Academic/Medical, Non-Profit & U.S
Slide 34: Cambridge's Strong Urban Cluster Fundamentals
34ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: CBRE & Newmark Grubb Knight Frank. Cambridge’s Strong Urban Cluster Fundamentals for Both Laboratory/Office and Office 7.7% AVAILABLE 11.7M RSF OFFICE MARKET 4.1% A
Slide 35: Limited Pipeline of New Laboratory/Office in Kendall Square
35ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Limited Pipeline of Announced New Laboratory/Office and Office in Kendall Square 2 New additions to supply in 2017 and 2018; both are Alexandria projects 2018/2019 399 Binn
Slide 36: Cambridge's Robust Life Science Demand
36ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Cambridge’s Robust Life Science Demand 2.4M RSFLife Science Demand 300,000 RSF Large-Cap Biotech 200,000 RSF Multinational Pharma 200,000 RSF Multinational Pharma 27 Requir
Slide 37: Growth in Annual Rental Revenue in Greater Boston
37ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 $115,752 $145,671 $163,029 $221,245 $276,788 $318,462 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 4Q12 4Q13 4Q14 4Q15 3Q16 3Q16 ($ in t ho us an d s) pro-forma an
Slide 38: Rental Rate Growth in Greater Boston
38ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 14.0% CASH 98.3% OCCUPANCY1 30.2% GAAP 1. As of September 30, 2016. Robust Demand and Limited Availability Driving Alexandria’s Core Rental Rate Growth in Greater Boston PR
Slide 39: Demand for Cambridge Properties Drives Rental Rate Growth
39ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. Demand for Alexandria’s Cambridge Properties Drives Rental Rate Growth 62.2% Cambridge 16,135 RSF $60.00 NNN/SF Previous Rent: $37.00 NNN/SF 36.0%
Slide 40: San Francisco
SAN FRANCISCO MISSION BAY/SOMA SOUTH._SAN FRANCISCO PALO ALTO/STANFORD RESEARCH PARK
Slide 41: Urban Innovation Clusters: Mission Bay/SoMa
41ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Unique Collaborative Urban Innovation Clusters: Mission Bay/SoMa SOMA RESIDENTIAL MISSION BAY AT&T PARK GOLDEN STATE WARRIORS UCSF MEDICAL CENTER UCSF RESEARCH
Slide 42: San Francisco's Major Urban Innovation Cluster Drivers
42ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Source: http://business.nasdaq.com /nasda q25 /10; Bay Area Council Economic Institute as of August 7, 2015. 2. Source: CBRE Scoring Tech Talent Report, 2016. 3. Source:
Slide 43: Tenant Base in San Francisco
43ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. Institutional represents: Academic/Medical, Non-Profit & U.S
Slide 44: San Francisco Laboratory/Office Fundamentals
44ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. Source: Jones Lange LaSalle. 1. Represents a midpoint between new build-to-suit and second generation product. San Francisco’s Strong Urban Cluste
Slide 45: San Francisco Tech Office Fundamentals
45ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. Source: Jones Lange LaSalle. San Francisco’s Strong Urban Cluster Fundamentals for Tech Office Rental Rate Growth: 2013–3Q16 50% INCREASE $40.00 |
Slide 46: San Francisco Life Science and Technology Demand
46ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 San Francisco’s Robust Life Science and Technology Demand 2.2M RSFLife Science Demand 750,000 RSF Multinational Pharma 400,000 RSF Multinational Pharma 300,000 RSF Institut
Slide 47: Growth in Annual Rental Revenue in San Francisco
47ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 $96,952 $99,723 $115,013 $121,705 $126,424 $195,952 $85,000 $105,000 $125,000 $145,000 $165,000 $185,000 2012 2013 2014 2015 3Q16 3Q16 ($ in t ho us an d s) INCREASE IN ANN
Slide 48: Rental Rate Growth in San Francisco
48ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 15.7% CASH 99.8% OCCUPANCY1 35.9% GAAP 1. As of September 30, 2016. Robust Demand and Limited Availability Driving Alexandria’s Core Rental Rate Growth in San Francisco PRI
Slide 49: Demand for San Francisco Properties Drives Rental Rate Growth
49ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Demand for Alexandria’s San Francisco Properties Drives Rental Rate Growth 43.0% South San Francisco 16,234 RSF $52.80 NNN/SF Previous Rent: $36.92 NNN/SF 40.1% South San F
Slide 50: New York City: Manhattan
Slide 51: New York City Innovation Cluster Map
51ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 SUNY DOWNSTATE MEDICAL CENTER HOSPITAL FOR SPECIAL SURGERY THE ROCKEFELLER UNIVERSITY FUTURE HOME OF CORNELL- TECHNION NYC TECH CAMPUS NEW YORK UNIVERSITY SCHOOL OF MEDICIN
Slide 52: New York City's Major Urban Innovation Cluster Drivers
52ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Source: New York’s Next Big Industry: Commercial Life Sciences. June 2016. KPMG. New York City’s Major Urban Innovation Cluster Drivers OCTOBER 2016 Bridge Medicines is
Slide 53: Tenant Base in New York City
53ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. Institutional represents: Academic/Medical, Non-Profit & U.S
Slide 54: New York City Laboratory/Office Fundamentals
54ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: Cushman & Wakefield. 1. Pending. New York City’s Strong Urban Cluster Fundamentals for Laboratory/Office 3.9% AVAILABLE 728K RSF LABORATORY/OFFICE MARKET Rental Rat
Slide 55: New York City's Robust Life Science Demand
55ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: Cushman & Wakefield. New York City’s Robust Life Science Demand 1.3M RSFLife Science Demand 600,000 RSF Multinational Pharma 400,000 RSF Institutional 125,000 RSF I
Slide 56: Growth in Annual Rental Revenue in New York City
56ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 $32,115 $47,100 $50,098 $56,135 $59,641 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 $60,000 4Q12 4Q13 4Q14 4Q15 3Q16 ($ in t ho us an d s) 95% OCCUPANCY1 INCREASE IN AN
Slide 57: San Diego
SAN DIEGO TORREY PINES . “UNIVERSITY TOWN CENTER SORRENTO. MESA/SORRENTO: VALLEY
Slide 58: San Diego Innovation Cluster Map
58ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 z SANFORD BURNHAM PREBYS MEDICAL DISCOVERY INSTITUTE THE SCRIPPS RESEARCH INSTITUTE SANFORD CONSORTIUM FOR REGENERATIVE MEDICINE SALK INSTITUTE FOR BIOLOGICAL STUDIES J. CR
Slide 59: San Diego's Major Urban Innovation Cluster Drivers
59ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Source: The San Diego Regional Development Corporation and JLL San Diego Life Science Outlook Report 2016. San Diego’s Major Urban Innovation Cluster Drivers OCTOBER 201
Slide 60: Tenant Base in San Diego
60ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. Institutional represents: Academic/Medical, Non-Profit & U.S
Slide 61: San Diego Laboratory/Office Fundamentals
61ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: Cushman & Wakefield. 1. Lab market size includes core submarkets of Torrey Pines, University Town Center, Sorrento Mesa, and Sorrento Valley. San Diego’s Strong Urb
Slide 62: San Diego's Robust Life Science Demand
62ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: Cushman & Wakefield. San Diego’s Robust Life Science Demand 2.1M RSFLife Science Demand 250,000 RSF Medical Device 180,000 RSF Medical Device 150,000 RSF Multinatio
Slide 63: Growth in Annual Rental Revenue in San Diego
63ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 $86,942 88,778 $103,048 $100,379 $100,733 $145,126 $80,000 $90,000 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 4Q12 4Q13 4Q14 4Q15 3Q16 3Q16 ($ in t ho us an d s)
Slide 64: Demand for San Diego Properties Increasing Rental Rates
64ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Demand for Alexandria’s San Diego Properties Increasing Rental Rates 79.1% Torrey Pines 24,240 RSF $46.20 NNN/SF Previous Rent: $25.79 NNN/SF 17.0% Torrey Pines 25,457 RSF
Slide 65: Seattle
SEATTLE LAKE UNION
Slide 66: Urban Innovation Cluster: Lake Union
66ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1150/1165/1166 EASTLAKE AVE EAST 1201/1208 EASTLAKE AVE EAST 1551 EASTLAKE AVE EAST 199 EAST BLAINE STREET1616 EASTLAKE AVE EAST 219 TERRY AVE NORTH 400 DEXTER AVE NORTH160
Slide 67: Seattle's Major Urban Innovation Cluster Drivers
67ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Source: Bloomberg Business, 2015 and Washington Life Sciences Economic Report, 2015. Seattle’s Major Urban Innovation Cluster Drivers OCTOBER 2016 Fred Hutch will collab
Slide 68: Tenant Base in Seattle
68ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Annual rental revenue represents annualized base rent as of September 30, 2016. 2. Institutional represents: Academic/Medical, Non-Profit & U.S
Slide 69: Seattle Urban Cluster Fundamentals
69ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. Source: CBRE. Seattle’s Strong Urban Cluster Fundamentals for Both Laboratory/Office and Office 7.9% AVAILABLE 8.7M RSF OFFICE MARKET 2.2% AVAILAB
Slide 70: Seattle's Life Science Demand
70ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Seattle’s Life Science Demand 217K RSFLife Science Demand 75,000 RSF Institutional 25,000 RSF Public Biotech 25,000 RSF Private Biotech 9 Requirements 1150/1165/1166 EASTLA
Slide 71: Growth in Annual Rental Revenue in Seattle
71ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 $26,001 $29,438 $29,881 $33,113 $33,930 $50,634 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55,000 4Q12 4Q13 4Q14 4Q15 3Q16 3Q16 ($ in t ho us an d s) INCREASE
Slide 72: Rental Rate Growth in Seattle
72ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 13.6% CASH 98.4% OCCUPANCY1 29.3% GAAP 1. As of September 30, 2016. Continued Demand and Limited Availability Driving Alexandria’s Core Rental Rate Growth in Seattle PRICIN
Slide 73: Demand for Seattle Properties Increasing Rental Rates
73ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Demand for Alexandria’s Seattle Properties Increasing Rental Rates 23.9% South Lake Union 20,133 RSF $54.00 NNN/SF Previous Rent: $43.60 NNN/SF 21.3% South Lake Union 6,272
Slide 74: 2017/2018 Contractual Lease Expirations
74ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 2017/2018 Contractual Lease Expirations
Slide 75: Top 2017 Contractual Lease Expirations
75ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Top 10 2017 Contractual Lease Expirations ADDRESS | SUBMARKET | MARKET EXPIRATION RSF ABRPSF LEASED NEGOTIATING/ ANTICIPATING REMAINING EXPIRING LEASES 13112 E
Slide 76: 2018 Contractual Lease Expirations
76ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s 2018 Contractual Lease Expirations MARKET EXPIRING RSF RENTAL RATE Greater Boston 1,052,429 $50.69 San Francisco 314,958 $41.96 New York City 2,942 N/A San Die
Slide 77: Institutional Investor Demand for Life Science Real Estate
77ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Institutional Investor Demand for Life Science Real Estate
Slide 78: Institutional Investor Interest in Life Science Real Estate
78ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Institutional Investor Interest in Life Science Real Estate Strong Demographic Story An aging population and lengthening life span both point to longer required periods of
Slide 79: Strategic Relationships with Institutional Investors
79ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. 10290 Campus Point Drive closed June 2016 and 10300 Campus Point Drive is expected to close by December 31, 2016. Represents the combined partial interest sales of 10290
Slide 80: 225 Binney Street Partial Interest Sale
80ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents the sale of partial interests. 225 BINNEY STREET DATE CLOSED December 2015 SALE OF PARTIAL INTERESTS 70.0% SALE PRICE1 $190M CASH CAP RATE 4.5%
Slide 81: 409/499 Illinois Street Partial Interest Sale
81ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents the sale of partial interests. 409/499 ILLINOIS STREET DATE CLOSED December 2015 SALE OF PARTIAL INTERESTS 40.0% SALE PRICE1 $190M CASH CAP RATE 4.5%
Slide 82: 1500 Owens Street Partial Interest Sale
82ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents the sale of partial interests. 1500 OWENS STREET DATE CLOSED December 2015 SALE OF PARTIAL INTERESTS 49.9% SALE PRICE1 $73M CASH CAP RATE 4.8%
Slide 83: 10290 & 10300 Campus Point Drive Partial Interest Sale
83ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. 10290 Campus Point Drive closed June 2016 and 10300 Campus Point Drive is expected to close by December 31, 2016. Represents the combined partial interest sales of 10290
Slide 84: Life Science Real Estate Attracts Institutional Investors
84ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Life Science Real Estate Attracts Institutional Investors AFIAA (Swiss Fund) American Healthcare Investors American Realty Capital Angelo, Gordon & Co. The Blackstone Group
Slide 85: Internal Growth: Strong Same Property NOI Growth
85ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Internal Growth: Strong Same Property Net Operating Income Growth
Slide 86: 2017: Solid Macro Fundamentals
86ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 2017: Solid Macro Fundamentals Limited supply of existing and future Class A space Strong demand from highly innovative entities Favorable rental rate trends Very strong oc
Slide 87: Alexandria's High-Quality Cash Flows
87ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ✓ As of September 30, 2016. 1. Annual Rental revenue represents annualized base rent in effect as of September 30, 2016. Alexandria’s High-Quality Cash Flows 54% of ARE’s A
Slide 88: Steady Same Property Cash NOI Growth
88ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Leasing activity includes renewals, re-leasing, and early renewals, and excludes leasing activity related to development and redevelopment projects. Alexandria’s Steady
Slide 89: Contractual Annual Rent Escalations
89ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Increasing Cash Flows From: As of September 30, 2016. Illustration of Key Components of Alexandria’s Same Property Cash Net Operating Income Growth Contractual Annual Rent
Slide 90: Strong Volume of Early Lease Renewals/Re-Leasing
90ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents lease renewals, re-leasing, and early renewals, and excludes leasing activity related to development and redevelopment projects and vacant spaces. Strong Dema
Slide 91: Leasing Activity Drives Same Property NOI Growth
91ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1%-3% Annual Same Property Cash Net Operating Income Growth 10% Rental Rate Growth x Illustration of Key Components of Alexandria’s Same Property Cash Net Operating Income
Slide 92: 2016: Rental Rate Increases on Renewals and Re-Leasing
92ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 For the nine months ended September 30, 2016. 2016: Significant Rental Rate Increases on Alexandria’s Lease Renewals and Re-Leasing of Space 1.5M RSF Renewed or Re-Leased +
Slide 93: Outperforms Office REITs: Occupancy
93ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: Office REIT Average composition per UBS Investment Research and data from S&P Global Market Intelligence. 1. Represents average occupancy of operating properties in
Slide 94: Outperforms Office REITs: Same Property Cash NOI Growth
94ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 7% 7% 5% 2% 4% 4% 5% 6% 5% 6% 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD 3Q16 Alexandria Office REIT Average Source: Office REIT Average composition per UBS Investmen
Slide 95: Outperforms Office REITs: EBITDA Margin
95ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Source: Office REIT Average composition per UBS Investment Research and data from S&P Global Market Intelligence. Alexandria Consistently Outperforms Office REITs in Key Op
Slide 96: External Growth: Strong and Highly Leased New Class A Properties
96ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 External Growth: Strong and Highly Leased New Class A Properties
Slide 97: External Growth: Strategically Creating Value
97ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 DEVELOPMENTS REDEVELOPMENTS ACQUISITIONS Development/redevelopment opportunities Near-term lease-up Below-market rental rates New, highly leased, creative, and innovative C
Slide 98: 2016: Capital Allocated to Urban Innovation Submarkets
98ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Reflects projected construction and acquisitions for the year ending December 31, 2016, including the acquisition of One Kendall Square located
Slide 99: Incremental Annual NOI from New Class A Properties
99ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of November 30, 2016. 1. Represents incremental annual net operating income upon stabilization of our development and redevelopment projects, including our share of real
Slide 100: Disciplined Pre-Leasing Approach to Ground-Up Development
100ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of November 30, 2016. 1. Represents average pre-leased percentage at the commencement of vertical aboveground construction. Alexandria’s Disciplined Pre-Leasing Approac
Slide 101: Solid Returns on Ground-Up Development
101ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Represents ground-up developments commenced and delivered from January 1, 2009 through November 30, 2016. Alexandria’s Solid Returns on Ground-Up Development of 17 New Cla
Slide 102: Successful Ground-Up Development: Investment-Grade Tenants
102ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. Represents annualized base rent from investment-grade rated tenants and/or tenants with market capitalization equal to or greater than $5 bill
Slide 103: Properties Placed into Service
103ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 RSF in Service % of Project in Service Unlevered Yields Placed into Service 2016 Total Project Average Cash Initial Stabilized Cash Basis Initial StabilizedProperty/Market
Slide 104: Projects Placed into Service during YTD 3Q16
104ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Development and Redevelopment Projects Placed into Service during YTD 3Q16 50 BINNEY STREET Greater Boston | Cambridge 97% Leased | 274,734 RSF Sanofi Genzyme
Slide 105: Projects Expected to Be Placed into Service in 4Q16
105ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Development and Redevelopment Projects Expected to Be Placed into Service in 4Q16 360 LONGWOOD AVENUE Greater Boston | Longwood Medical Area 76% Leased | 100,
Slide 106: 1455/1515 Third Street
106ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1455/1515 THIRD STREET San Francisco | Mission Bay/SoMa 422,980 RSF TRANSACTION COMPLETED NOVEMBER 2016 75-year lease of land and parking garage with Uber Technologies, In
Slide 107: Development and Redevelopment Projects Under Construction
107ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Property/Market/Submarket ARE’s Ownership Interest Unlevered Yields Cost to Complete Funded By Total at Completion Average Cash Initial Stabilized Cash Basis Initial Stabi
Slide 108: Binney Street, Cambridge
108ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ▷ BRISTOL-MYERS SQUIBB COMPANY 100 BINNEY STREET GREATER BOSTON | CAMBRIDGE | 431,483 RSF
Slide 109: Townsend Street, San Francisco
109ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 510 TOWNSEND STREET ▷ STRIPE, INC. SAN FRANCISCO | MISSION BAY/SOMA | 300,000 RSF
Slide 110: Brannan Street, Phase I
110ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 505 BRANNAN STREET, PHASE I ▷ PINTEREST, INC. SAN FRANCISCO | MISSION BAY/SOMA | 150,000 RSF
Slide 111: East Grand Avenue
111ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 213 EAST GRAND AVENUE ▷ MERCK & CO., INC. SAN FRANCISCO | SOUTH SAN FRANCISCO | 293,855 RSF
Slide 112: ARE Spectrum
112ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ARE SPECTRUM ▷ CELGENE CORPORATION ▷ THE MEDICINES COMPANY ▷ VERTEX PHARMACEUTICALS INCORPORATED SAN DIEGO | TORREY PINES | 336,461 RSF
Slide 113: 9625 Towne Centre Drive
113ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 9625 TOWNE CENTRE DRIVE ▷ NEGOTIATING SAN DIEGO | UNIVERSITY TOWN CENTER | 162,156 RSF
Slide 114: Dexter Avenue North
114ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 400 DEXTER AVENUE NORTH ▷ JUNO THERAPEUTICS, INC. SEATTLE | LAKE UNION | 287,806 RSF
Slide 115: Opportunistic Value-Added Acquisition Strategy
115ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Opportunistic Value-Added Acquisition Strategy GROUND-UP DEVELOPMENT REDEVELOPMENT OF OFFICE TO LAB BELOW-MARKET LEASES $How WeIncrease Cash Flows At acquisit
Slide 116: One Kendall Square
116ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ONE KENDALL SQUARE Greater Boston | Cambridge 817,271 RSF CLOSED NOVEMBER 8, 2016 $725 million purchase price, including $203 million assumption of secured loan Seven buil
Slide 117: Torrey Ridge Science Center
117ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 TORREY RIDGE SCIENCE CENTER San Diego | Torrey Pines 294,993 RSF CLOSED OCTOBER 3, 2016 $182.5 million purchase price Three buildings aggregating 294,993 RSF 87.1% occupie
Slide 118: Conservative Underwriting and Construction Practices Lead to Yield Enhancement
118ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Conservative Underwriting and Construction Practices Lead to Yield Enhancement
Slide 119: Conservative Underwriting Principles
119ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Conservative Underwriting Principles ACQUISITIONS/REDEVELOPMENTS Define clear value-add profile Highly vetted pre-construction hold Sensitivity analysis on ho
Slide 120: 50 & 60 Binney Street Outperformance
120ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Source: Greater Boston | Cambridge 274,743 RSF | 50 Binney Street 50 & 60 BINNEY STREET ORIGINAL FORECAST INITIAL CASH YIELD 7.3% ACTUAL INITIAL CASH YIELD 7.7% 255,743
Slide 121: 11 Hurley Street Outperformance
121ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Greater Boston | Cambridge 59,783 RSF Reasons for Outperformance: Avoided use of owner’s contingency Consultants brought in early Co-location of consultants during constru
Slide 122: Future Pipeline of New Class A Properties: 2018-2021
122ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Future Pipeline of New Class A Properties: 2018-2021
Slide 123: Alexandria's Key Future Projects
123ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016 unless otherwise stated. 1. Excludes acquisition of 88 Bluxome Street which is currently under contract. 2. Information for 399 Binney Street is u
Slide 124: Binney Street, Cambridge
124ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 399 BINNEY STREET GREATER BOSTON | CAMBRIDGE | 172,500 RSF
Slide 125: Alexandria Technology Square
125ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 ALEXANDRIA TECHNOLOGY SQUARE® GREATER BOSTON | CAMBRIDGE | 100,000 RSF
Slide 126: Bluxome Street
126ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 88 BLUXOME STREET SAN FRANCISCO | MISSION BAY/SOMA | 1,070,925 RSF
Slide 127: Brannan Street, Phase II
127ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 505 BRANNAN STREET, PHASE II SAN FRANCISCO | MISSION BAY/SOMA | 165,000 RSF
Slide 128: East 29th Street (North Tower)
128ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 EAST 29TH STREET (NORTH TOWER) NEW YORK CITY | MANHATTAN | 420,000 RSF
Slide 129: 5200 Illumina Way
129ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 5200 ILLUMINA WAY SAN DIEGO | UNIVERSITY TOWN CENTER | 386,044 RSF
Slide 130: Campus Point Drive
130ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 CAMPUS POINT DRIVE SAN DIEGO | UNIVERSITY TOWN CENTER | 315,000 RSF
Slide 131: 1150/1165/1166 Eastlake Avenue East
131ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1150/1165/1166 EASTLAKE AVENUE EAST SEATTLE | LAKE UNION | 366,000 RSF
Slide 132: 1818 Fairview Avenue East
132ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1818 FAIRVIEW AVENUE EAST SEATTLE | LAKE UNION | 188,490 RSF
Slide 133: Research Triangle Park: 6 Davis Drive
133ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 RESEARCH TRIANGLE PARK | RESEARCH TRIANGLE PARK | 1,000,000 RSF6 DAVIS DRIVE
Slide 134: Balance Sheet
134ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Balance Sheet
Slide 135: Financial Strategy: Disciplined Allocation of Capital and Balance Sheet Management
135ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Financial Strategy: Disciplined Allocation of Capital and Balance Sheet Management Allocate capital to Class A properties located in unique collaborative scie
Slide 136: Continuous Improvement in Cost of Capital
136ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Continuous Improvement in Alexandria’s Cost of Capital MOODY’S REPORT DATED CREDIT RATING CRITERIA AUGUST 12, 2011 OCTOBER 26, 2015 ALEXANDRIA’S OUTLOOK OVERALL ASSESSMENT
Slide 137: Proven Access to Diverse Sources of Capital
137ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Net cash provided by operating activities after dividends and distributions to noncontrolling interests. Alexandria’s Proven Access to Diverse Sources of Capital PROVEN
Slide 138: Disciplined Approach to Funding Growth
138ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Disciplined Approach to Funding Growth at Attractive Returns Invest Cash Flows from Operating Activities After Dividends Utilize Long-Term Fixed-Rate Debt on
Slide 139: Disciplined Approach to Funding Growth at Attractive Returns
139ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents net cash provided by operating activities after dividends and distributions to noncontrolling interests. For purposes of this calculation, changes in operati
Slide 140: Funding Growth at Attractive Returns: Illustrative Investment
140ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Disciplined Approach to Funding Growth at Attractive Returns Alexandria’s 5-year average issuance of common stock to fund growth was significantly less at 30
Slide 141: Leverage Neutral Funding through EBITDA Growth
141ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents the midpoint of our 2016 guidance range based on 4Q16 annualized adjusted EBITDA. Alexandria’s Leverage Neutral Funding with Long-Term Fixed-Rate Debt throug
Slide 142: Real Estate Sales Strategy
142ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s Real Estate Sales Strategy GROUND-UP DEVELOPMENT$Increase Net Asset Value through Reinvestment LOW CAP RATE OPERATING ASSETSRecycle capital from high-value as
Slide 143: Laddering of Debt Maturities
143ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of September 30, 2016. 1. We expect to repay a loan aggregating $76 million in December 2016. Additionally, we may extend a loan aggregating $210.5 million. Alexandria’
Slide 144: Solid Credit Metrics
144ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Quarter annualized. 2. Represents the midpoint of our 2016 guidance ranges disclosed on October 31, 2016. 3. Represents the midpoint of our 2016 guidance range for net
Slide 145: Solid Credit Metrics: Liquidity and Unencumbered NOI
145ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. As of September 30, 2016. 2. As a percentage of total debt. 3. For the three months ended September 30, 2016. Alexandria’s Solid Credit Metrics Significant Unencumbered
Slide 146: Growth in Cash Flows Supports Growth in Dividends
146ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents the sum of quarterly dividends declared during each calendar year, except for 2016, which represents YTD 3Q16 annualized. 2. The 2014 and 2015 amounts repres
Slide 147: 2017 Guidance
147ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 2017 Guidance
Slide 148: Alexandria's 2017 Performance Goals
148ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Disciplined Allocation of Capital ✓ ✓Solid Internal Growth ✓Solid External Growth ✓Disciplined Management of Balance Sheet Alexandria’s 2017 Performance Goals ✓Solid Per S
Slide 149: Alexandria's 2017 Per Share Guidance
149ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Range of 20 cents per share represents +/- 3.3% from $6.00 midpoint of range of guidance for 2017 funds from operations per share. 2. Represents 76.8 million shares out
Slide 150: Consistent Growth in FFO Per Share
150ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Represents growth in funds from operations per share-diluted, as adjusted attributable to Alexandria’s common stockholders. 2. Represents midpoint of our 2016 guidance
Slide 151: 2017 Key Internal Growth Assumptions
151ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Lease renewals and re-leasing of space. 2. Includes temporary vacancy of 125,409 RSF at 10300 Campus Point Drive in our University Town Center submarket of San Diego. E
Slide 152: 2017 External Growth Assumptions
152ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 As of November 30, 2016. 1. Represents incremental annual net operating income upon stabilization of our development and redevelopment projects, including our share of rea
Slide 153: 2017 Guidance: Straight-Line Rent, G&A and Interest Expense
153ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Interest ExpenseStraight-Line Rent Revenue General and Administrative Expenses Alexandria’s 2017 Guidance Range: Straight-Line Rent Revenue, General and Administrative Exp
Slide 154: 2017: Allocation of Capital to Urban Innovation Submarkets
154ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Reflects projected construction and acquisitions for the year ending December 31, 2017. 94% 2017: Alexandria’s Allocation of Capital to Urban Innovation Submarkets1 Cam
Slide 155: Solid Credit Metrics
155ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 1. Quarter annualized. 2. Represents the midpoint of our 2016 guidance ranges disclosed on October 31, 2016. 3. Represents the midpoint of our 2016 guidance range for net
Slide 156: 2017 Guidance: Sources and Uses of Capital
156ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s 2017 Guidance: Sources and Uses of Capital Range Sources of Capital: Net cash provided by operating activities after dividends $ 115 $ 135 Incremental debt 46
Slide 157: 2017 Guidance: Incremental Debt
157ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Alexandria’s 2017 Guidance: Incremental Debt Range Issuance of unsecured senior notes payable $ 375 $ 475 Borrowings – secured construction loans 200 250 Repayments of sec
Slide 158: Appendix
158ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Appendix
Slide 159: Non-GAAP Measures: Adjusted EBITDA and Margin
159ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Appendix: Non-GAAP Measures Adjusted EBITDA and Adjusted EBITDA Margin 3Q16 4Q15 2015 2014 2013 2012 2011 Net income $ 28,559 $ $42,977 $ 146,114 $ 106,778 $ 140,249 $ 105
Slide 160: Non-GAAP Measures: Fixed-Charge Coverage and Unencumbered NOI
160ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Appendix: Non-GAAP Measures Three Months Ended Fixed-Charge Coverage Ratio 3Q16 4Q15 Adjusted EBITDA $ 153,667 $ $146,516 Interest expense $ 25,850 $ $28,230 Capitalized i
Slide 161: Non-GAAP Measures: FFO Per Share, as Adjusted
161ALEXANDRIA REAL ESTATE EQUITIES, INC. | Confidential and Proprietary | Do Not Copy or Distribute | All Rights Reserved © 2016 Appendix: Non-GAAP Measures Funds from operations per share, as adjusted 2013 2016 2017 Net income (loss) per share attributable to Alexandria Real Estate Equities, Inc.’s
Alexandria Real Estate Equities — Investor Day (November 2016) on 6ix